Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 12, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | AMERICAN INTERNATIONAL GROUP INC | ||
Entity Central Index Key | 5272 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $77,972,000,000 | ||
Entity Common Stock, Shares Outstanding | 1,372,435,893 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fixed maturity securities: | ||
Bonds available for sale, at fair value (amortized cost: 2014 - $243,308; 2013 - $248,531) | $259,859 | $258,274 |
Other bond securities, at fair value (See Note 6) | 19,712 | 22,623 |
Equity Securities: | ||
Common and preferred stock available for sale, at fair value (cost: 2014 - $1,930; 2013 - $1,726) | 4,395 | 3,656 |
Other common and preferred stock, at fair value (See Note 6) | 1,049 | 834 |
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2014 - $7; 2013 - $0) | 24,990 | 20,765 |
Other invested assets (portion measured at fair value: 2014 - $9,394; 2013 - $8,598) | 34,518 | 28,659 |
Short-term investments (portion measured at fair value: 2014 - $1,684; 2013 - $6,313) | 11,243 | 21,617 |
Total investments | 355,766 | 356,428 |
Cash | 1,758 | 2,241 |
Accrued investment income | 2,712 | 2,905 |
Premiums and other receivables, net of allowance | 12,031 | 12,939 |
Reinsurance assets, net of allowance | 21,959 | 23,829 |
Deferred income taxes | 19,339 | 21,925 |
Deferred policy acquisition costs | 9,827 | 9,436 |
Derivative assets, at fair value | 1,604 | 1,665 |
Other assets, including restricted cash of $2,025 in 2014 and $865 in 2013 (portion measured at fair value: 2014 - $0; 2013 - $418) | 10,549 | 9,366 |
Separate account assets, at fair value | 80,036 | 71,059 |
Assets held for sale | 0 | 29,536 |
Total assets | 515,581 | 541,329 |
Liabilities: | ||
Liability for unpaid claims and claims adjustment expense | 77,260 | 81,547 |
Unearned premiums | 21,324 | 21,953 |
Future policy benefits for life and accident and health insurance contracts | 42,749 | 40,653 |
Policyholder contract deposits (portion measured at fair value: 2014 - $1,561; 2013 - $384) | 124,613 | 122,016 |
Other policyholder funds (portion measured at fair value: 2014 - $8; 2013 - $0) | 4,669 | 5,083 |
Derivative liabilities, at fair value | 2,273 | 2,511 |
Other liabilities (portion measured at fair value: 2014 - $350; 2013 - $933) | 24,168 | 29,155 |
Long-term debt (portion measured at fair value: 2014 - $5,466; 2013 - $6,747) | 31,217 | 41,693 |
Separate account liabilities | 80,036 | 71,059 |
Liabilities held for sale | 0 | 24,548 |
Total liabilities | 408,309 | 440,218 |
Contingencies, commitments and guarantees (see Note 16) | ||
Redeemable noncontrolling interests (see Note 18) | 0 | 30 |
AIG shareholders' equity: | ||
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2014 - 1,906,671,492 and 2013 - 1,906,645,689 | 4,766 | 4,766 |
Treasury stock, at cost; 2014 - 530,744,521; 2013 - 442,582,366 shares of common stock | -19,218 | -14,520 |
Additional paid-in capital | 80,958 | 80,899 |
Retained earnings | 29,775 | 22,965 |
Accumulated other comprehensive income (loss) | 10,617 | 6,360 |
Total AIG shareholders' equity | 106,898 | 100,470 |
Non-redeemable noncontrolling interests (including $100 associated with businesses held for sale) | 374 | 611 |
Total equity | 107,272 | 101,081 |
Total liabilities and equity | $515,581 | $541,329 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical - assets and liabilities) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets: | ||
Bonds available for sale, amortized cost | $243,307 | $248,531 |
Common and preferred stock available for sale, cost | 1,930 | 1,726 |
Mortgage and other loans receivable, portion measured at fair value | 6 | 0 |
Other assets, restricted cash | 2,025 | 865 |
Liabilities: | ||
Long-term debt, portion measured at fair value | 5,466 | 6,747 |
Other Policyholder Contract Deposits At Fair Value | $8 |
CONSOLIDATED_BALANCE_SHEETS_Pa1
CONSOLIDATED BALANCE SHEETS (Parenthetical - equity) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
AIG shareholders' equity: | ||
Common stock, par value (in dollars per share) | $2.50 | $2.50 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 1,906,671,492 | 1,906,645,689 |
Treasury stock, shares of common stock | 530,744,521 | 442,582,366 |
Non-redeemable noncontrolling interests, associated with businesses held for sale | $0 | $100 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Premiums | $37,254 | $37,499 | $38,189 |
Policy fees | 2,615 | 2,340 | 2,192 |
Net investment income | 16,079 | 15,810 | 20,343 |
Net realized capital gains (losses): | |||
Total other-than-temporary impairments on available for sale securities | -182 | -165 | -448 |
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss) | -35 | -22 | -381 |
Net other-than-temporary impairments on available for sale securities recognized in net income | -217 | -187 | -829 |
Other realized capital gains | 956 | 2,126 | 1,916 |
Total net realized capital gains | 739 | 1,939 | 1,087 |
Aircraft leasing revenue | 1,602 | 4,420 | 4,504 |
Other income | 6,117 | 6,866 | 4,899 |
Total revenues | 64,406 | 68,874 | 71,214 |
Benefits, losses and expenses: | |||
Policyholder benefits and losses incurred | 28,281 | 29,503 | 32,036 |
Interest credited to policyholder account balances | 3,768 | 3,892 | 4,340 |
Amortization of deferred policy acquisition costs | 5,330 | 5,157 | 5,709 |
General operating and other expenses | 13,138 | 13,564 | 13,013 |
Interest expense | 1,718 | 2,142 | 2,319 |
Aircraft leasing expenses | 1,585 | 4,549 | 4,138 |
Loss on extinguishment of debt | 2,282 | 651 | 32 |
Net (gain) loss on sale of properties and divested businesses | 2,197 | -48 | -6,736 |
Total benefits, losses and expenses | 53,905 | 59,506 | 68,323 |
Income from continuing operations before income tax expense (benefit) | 10,501 | 9,368 | 2,891 |
Income tax expense (benefit): | |||
Current | 588 | 680 | 762 |
Deferred | 2,339 | -320 | -1,570 |
Income tax expense (benefit) | 2,927 | 360 | -808 |
Income from continuing operations | 7,574 | 9,008 | 3,699 |
Income (loss) from discontinued operations, net of income tax expense | -50 | 84 | 1 |
Net income | 7,524 | 9,092 | 3,700 |
Less: Net income (loss) from continuing operations attributable to noncontrolling interests: | |||
Nonvoting, callable, junior and senior preferred interests | 0 | 0 | 208 |
Other | -5 | 7 | 54 |
Total net income (loss) from continuing operations attributable to noncontrolling interests | -5 | 7 | 262 |
Net income attributable to AIG | 7,529 | 9,085 | 3,438 |
Net income (loss) attributable to AIG common shareholders | $7,529 | $9,085 | $3,438 |
Basic: | |||
Income from continuing operations | $5.31 | $6.11 | $2.04 |
Income (loss) from discontinued operations - basic (in dollars per share) | ($0.04) | $0.05 | $0 |
Net income attributable to AIG | $5.27 | $6.16 | $2.04 |
Diluted: | |||
Income from continuing operations | $5.24 | $6.08 | $2.04 |
Income (loss) from discontinued operations | ($0.04) | $0.05 | $0 |
Net income attributable to AIG | $5.20 | $6.13 | $2.04 |
Weighted average shares outstanding: | |||
Basic | 1,427,959,799 | 1,474,171,690 | 1,687,197,038 |
Diluted | 1,447,553,652 | 1,481,206,797 | 1,687,226,641 |
Dividends declared per common share | $0.50 | $0.20 | $0 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income | $7,524 | $9,092 | $3,700 |
Other comprehensive income (loss), net of tax | |||
Change in unrealized appreciation of fixed maturity investments on which other-than-temporary credit impairments were recognized | 107 | 361 | 1,286 |
Change in unrealized appreciation (depreciation) of all other investments | 5,538 | -6,673 | 4,880 |
Change in foreign currency translation adjustments | -832 | -556 | 0 |
Change in net derivative gains (losses) arising from cash flow hedging activities | 0 | 0 | 17 |
Change in retirement plan liabilities adjustment | -556 | 631 | -87 |
Other comprehensive income (loss) | 4,257 | -6,237 | 6,096 |
Comprehensive income (loss) | 11,781 | 2,855 | 9,796 |
Comprehensive income (loss) attributable to noncontrolling nonvoting, callable, junior and senior preferred interests | 0 | 0 | 208 |
Comprehensive income (loss) attributable to other noncontrolling interests | -5 | -16 | 57 |
Total comprehensive income (loss) attributable to noncontrolling interests | -5 | -16 | 265 |
Comprehensive income attributable to AIG | $11,786 | $2,871 | $9,531 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Total AIG Shareholders' Equity | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Non redeemable Non-controlling Interests | |||||
In Millions, unless otherwise specified | |||||||||||||
Balance at Dec. 31, 2011 | $102,393 | $101,538 | $4,766 | ($942) | $80,459 | $10,774 | $6,481 | $855 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Common stock issued under stock plans | 3 | 3 | 18 | -15 | |||||||||
Purchase of common stock | -13,000 | -13,000 | 0 | -13,000 | 0 | 0 | 0 | 0 | |||||
Net income attributable to AIG or other noncontrolling interests | 3,478 | [1] | 3,438 | [1] | 0 | 0 | 0 | 3,438 | [1] | 0 | 40 | [1] | |
Other comprehensive income (loss) | 6,092 | 6,093 | 0 | 0 | 0 | 0 | 6,093 | -1 | |||||
Deferred income taxes | -9 | -9 | 0 | 0 | -9 | 0 | 0 | 0 | |||||
Net decrease due to deconsolidation | -27 | 0 | 0 | 0 | 0 | 0 | 0 | -27 | |||||
Contributions from noncontrolling interests | 80 | 0 | 0 | 0 | 0 | 0 | 0 | 80 | |||||
Distributions to noncontrolling interests | -167 | 0 | 0 | 0 | 0 | 0 | 0 | -167 | |||||
Other | -174 | -61 | 0 | 0 | -25 | -36 | 0 | -113 | |||||
Balance at Dec. 31, 2012 | 98,669 | 98,002 | 4,766 | -13,924 | 80,410 | 14,176 | 12,574 | 667 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Purchase of common stock | -597 | -597 | -597 | 0 | 0 | 0 | 0 | ||||||
Net income attributable to AIG or other noncontrolling interests | 9,090 | [1] | 9,085 | [1] | 0 | 0 | 9,085 | [1] | 0 | [1] | 5 | [1] | |
Dividends | 294 | 294 | 294 | ||||||||||
Other comprehensive income (loss) | -6,219 | -6,214 | 0 | 0 | 0 | -6,214 | -5 | ||||||
Deferred income taxes | 355 | 355 | 0 | 355 | 0 | 0 | 0 | ||||||
Contributions from noncontrolling interests | 33 | 0 | 0 | 0 | 0 | 0 | 33 | ||||||
Distributions to noncontrolling interests | -81 | 0 | 0 | 0 | 0 | 0 | -81 | ||||||
Other | 125 | 133 | 1 | 134 | -2 | 0 | -8 | ||||||
Balance at Dec. 31, 2013 | 101,081 | 100,470 | 4,766 | -14,520 | 80,899 | 22,965 | 6,360 | 611 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||
Purchase of common stock | -4,698 | -4,698 | -4,698 | 0 | 0 | 0 | 0 | ||||||
Net income attributable to AIG or other noncontrolling interests | 7,524 | [1] | 7,529 | [1] | 0 | 0 | 7,529 | 0 | -5 | ||||
Dividends | -712 | -712 | 0 | 0 | -712 | 0 | 0 | ||||||
Other comprehensive income (loss) | 4,257 | 4,257 | 0 | 0 | 0 | 4,257 | 0 | ||||||
Deferred income taxes | -10 | -10 | 0 | -10 | 0 | 0 | 0 | ||||||
Net decrease due to deconsolidation | -99 | -99 | |||||||||||
Contributions from noncontrolling interests | 17 | 0 | 0 | 0 | 0 | 0 | 17 | ||||||
Distributions to noncontrolling interests | -147 | 0 | 0 | 0 | 0 | 0 | -147 | ||||||
Other | 59 | 62 | 0 | 69 | -7 | 0 | -3 | ||||||
Balance at Dec. 31, 2014 | $107,272 | $106,898 | $4,766 | ($19,218) | $80,958 | $29,775 | $10,617 | $374 | |||||
[1] | Excludes gains of $2B million and $222 million in 2013 and 2012, respectively, attributable to redeemable noncontrolling interests. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $7,524 | $9,092 | $3,700 |
(Income) loss from discontinued operations | 50 | -84 | -1 |
Noncash revenues, expenses, gains and losses included in income: | |||
Net gains on sales of securities available for sale and other assets | -764 | -2,741 | -3,219 |
Net (gains) losses on sales of divested businesses | -2,197 | 48 | 6,736 |
Net losses on extinguishment of debt | 2,282 | 651 | 32 |
Unrealized gains in earnings - net | -1,239 | -156 | -6,091 |
Equity in income from equity method investments, net of dividends or distributions | -1,394 | -1,484 | -911 |
Depreciation and other amortization | 4,448 | 4,713 | 7,349 |
Impairments of assets | 610 | 1,332 | 1,747 |
Changes in operating assets and liabilities: | |||
Insurance reserves | -2,281 | -2,576 | -2,260 |
Premiums and other receivables and payables - net | 820 | 43 | 1,678 |
Reinsurance assets and funds held under reinsurance treaties | 1,872 | 2,131 | 1,407 |
Capitalization of deferred policy acquisition costs | -5,880 | -5,834 | -5,613 |
Current and deferred income taxes - net | 2,190 | -437 | -1,255 |
Other, net | -1,034 | 1,167 | 377 |
Total adjustments | -2,567 | -3,143 | -23 |
Net cash provided by operating activities | 5,007 | 5,865 | 3,676 |
Sales or distribution of: | |||
Available for sale investments | 25,526 | 36,050 | 39,818 |
Other securities | 4,930 | 5,134 | 17,814 |
Other invested assets | 3,884 | 6,442 | 19,012 |
Divested businesses, net | 2,348 | ||
Maturities of fixed maturity securities available for sale | 25,560 | 26,048 | 21,449 |
Principal payments received on and sales of mortgage and other loans receivable | 3,856 | 3,420 | 3,313 |
Purchases of: | |||
Available for sale investments | -45,552 | -63,339 | -53,536 |
Other securities | -472 | -2,040 | -13,373 |
Other invested assets | -4,078 | -7,242 | -6,402 |
Mortgage and other loans receivable | -8,008 | -5,266 | -3,256 |
Net change in restricted cash | -1,447 | 1,244 | 414 |
Net change in short-term investments | 8,760 | 7,842 | -8,109 |
Other, net | -1,023 | -1,194 | -532 |
Net cash provided by investing activities | 14,284 | 7,099 | 16,612 |
Proceeds from (payments for) | |||
Policyholder contract deposits | 16,829 | 15,772 | 13,288 |
Policyholder contract withdrawals | -15,110 | -16,319 | -13,978 |
Issuance of long-term debt | 6,687 | 5,235 | 8,612 |
Repayments of long-term debt | -16,160 | -14,197 | -11,101 |
Repayment of Department of the Treasury SPV Preferred Interests | 0 | 0 | -8,636 |
Purchase of Common Stock | -4,902 | -597 | -13,000 |
Dividends paid | -712 | -294 | |
Other, net | -6,420 | -1,358 | 4,251 |
Net cash provided by (used in) financing activities | -19,788 | -11,758 | -20,564 |
Effect of exchange rate changes on cash | -74 | -92 | 16 |
Net increase (decrease) in cash | -571 | 1,114 | -260 |
Cash at beginning of year | 2,241 | 1,151 | 1,474 |
Change in cash of businesses held for sale | 88 | -24 | -63 |
Cash at end of year | $1,758 | $2,241 | $1,151 |
Supplementary_Disclosure_of_Co
Supplementary Disclosure of Consolidated Cash Flow Information (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash paid during the period for: | |||
Interest | $3,367 | $3,856 | $4,037 |
Taxes | 737 | 796 | 447 |
Non-cash investing/financing activities: | |||
Interest credited to policyholder contract deposits included in financing activities | 3,904 | 3,987 | 4,501 |
Non-cash consideration received from sale of ILFC | $4,586 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2014 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION |
American International Group, Inc. (AIG) is a leading global insurance organization serving customers in more than 100 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG Common Stock, par value $2.50 per share (AIG Common Stock), is listed on the New York Stock Exchange (NYSE: AIG) and the Tokyo Stock Exchange. Unless the context indicates otherwise, the terms “AIG,” “we,” “us” or “our” mean American International Group, Inc. and its consolidated subsidiaries and the term “AIG Parent” means American International Group, Inc. and not any of its consolidated subsidiaries. | |
The consolidated financial statements include the accounts of AIG Parent, our controlled subsidiaries (generally through a greater than 50 percent ownership of voting rights of a voting interest entity), and variable interest entities (VIEs) of which we are the primary beneficiary. Equity investments in entities that we do not consolidate, including corporate entities in which we have significant influence and partnership and partnership-like entities in which we have more than minor influence over operating and financial policies, are accounted for under the equity method unless we have elected the fair value option. | |
Certain of our foreign subsidiaries included in the consolidated financial statements report on different annual fiscal year bases, in most cases ending November 30. The effect on our consolidated financial condition and results of operations of all material events occurring at these subsidiaries between such fiscal year end and December 31st for all periods presented in these consolidated financial statements has been recorded. | |
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). All material intercompany accounts and transactions have been eliminated. | |
Segment changes are discussed in Note 3 herein. | |
Presentation Changes | |
Policy fees related to features accounted for as embedded derivatives in variable annuity products, including guaranteed minimum withdrawal benefits and guaranteed minimum account value benefits, are included in the fair value measurement of embedded derivatives. Effective December 31, 2014, we reclassified fees related to these embedded derivatives to Net realized capital gains, with no effect to the fair value measurement of the embedded derivatives, Income from continuing operations, Net income attributable to AIG, or Shareholders’ equity. Accordingly, a portion of prior period policy fees have been reclassified to Net realized capital gains to conform to the current period presentation. See Note 14 herein for our accounting policy and Note 5 for a discussion of the fair value measurement of embedded policy derivatives, including policy on classification of fees. | |
Revisions were made to change the classification of certain miscellaneous income from General operating and other expenses to Premiums and of certain broker-dealer fees from General operating and other expenses to Other income, to conform with the current period presentation, with no effect to Income from continuing operations or Net income attributable to AIG. | |
Sale of ILFC | |
On May 14, 2014, we completed the sale of 100 percent of the common stock of International Lease Finance Corporation (ILFC) to AerCap Ireland Limited, a wholly owned subsidiary of AerCap Holdings N.V. (AerCap), in exchange for total consideration of approximately $7.6 billion, including cash and 97.6 million newly issued AerCap common shares (the AerCap Transaction). The total value of the consideration was based in part on AerCap’s closing price per share of $47.01 on May 13, 2014. ILFC’s results of operations are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Consolidated Statements of Income through the date of the completion of the sale. ILFC’s assets and liabilities were classified as held-for-sale at December 31, 2013 in the Consolidated Balance Sheets. See Note 4 herein for further discussion. | |
Use of Estimates | |
The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of: | |
classification of ILFC as held for sale and related fair value measurement for applicable years; | |
income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize the net deferred tax asset; | |
liability for unpaid losses and loss adjustment expenses; | |
reinsurance assets; | |
valuation of future policy benefit liabilities and timing and extent of loss recognition; | |
valuation of liabilities for guaranteed benefit features of variable annuity products; | |
estimated gross profits to value deferred acquisition costs for investment-oriented products; | |
impairment charges, including other-than-temporary impairments on available for sale securities, impairments on investments in life settlements and goodwill impairment; | |
liability for legal contingencies; and | |
fair value measurements of certain financial assets and liabilities. | |
These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial conditions, results of operations and cash flows could be materially affected. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The following table identifies our significant accounting policies presented in other Notes to these Consolidated Financial Statements, with a reference to the Note where a detailed description can be found: | |
Note 4. | |
Held-for-Sale Classification, Divested Businesses and Discontinued Operations | |
Held-for-sale classification | |
Discontinued operations | |
Note 6. | |
Investments | |
Fixed maturity and equity securities | |
Other invested assets | |
Short-term investments | |
Net investment income | |
Net realized capital gains (losses) | |
Other-than-temporary impairments | |
Note 7. | |
Lending Activities | |
Mortgage and other loans receivable – net of allowance | |
Note 8. | |
Reinsurance | |
Reinsurance assets – net of allowance | |
Note 9. | |
Deferred Policy Acquisition Costs | |
Deferred policy acquisition costs | |
Amortization of deferred policy acquisition costs | |
Note 11. | |
Derivatives and Hedge Accounting | |
Derivative assets and liabilities, at fair value | |
Note 12. | |
Goodwill | |
Note 13. | |
Insurance Liabilities | |
Liability for unpaid losses and loss adjustment expenses | |
Discounting of reserves | |
Future policy benefits | |
Policyholder contract deposits | |
Other policyholder funds | |
Note 14 | |
Variable Life and Annuity Contracts | |
Note 15. | |
Debt | |
Long-term debt | |
Note 16. | |
Contingencies, Commitments and Guarantees | |
Legal contingencies | |
Note 18. | |
Noncontrolling Interests | |
Note 19. | |
Earnings Per Share | |
Note 24. | |
Income Taxes | |
Other significant accounting policies | |
Premiums for short-duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums written and earned on a pro rata basis over the term of the related coverage. In addition, certain miscellaneous income is included as premiums written and earned. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired terms of coverage. Reinsurance premiums are typically earned over the same period as the underlying policies or risks covered by the contract. As a result, the earnings pattern of a reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies throughout the year. | |
Reinsurance premiums ceded are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate. | |
Premiums for long-duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued. | |
Policy fees represent fees recognized from universal life and investment-type products consisting of policy charges for the cost of insurance, policy administration charges, surrender charges and amortization of unearned revenue reserves. | |
Aircraft leasing revenue from flight equipment under operating leases, through May 14, 2014, the date of disposal of ILFC, was recognized over the life of the leases as rental payments became receivable under the provisions of the leases or, in the case of leases with varying payments, under the straight-line method over the noncancelable term of the leases. In certain cases, leases provided for additional payments contingent on usage. In those cases, rental revenue was recognized at the time such usage occurred, net of estimated future contractual aircraft maintenance reimbursements. Gains on sales of flight equipment were recognized when flight equipment was sold and the risk of ownership of the equipment passed to the new owner. | |
Other income includes unrealized gains and losses on derivatives, including income from the Direct Investment book (DIB) unrealized market valuation gains and losses associated with the Global Capital Markets (GCM) super senior credit default swap (CDS) portfolio, advisory fee income from the Consumer Insurance broker dealer business, as well as legal settlements of $804 million, $1.2 billion and $200 million from legacy crisis and other matters in 2014, 2013 and 2012, respectively. | |
Other income from our Corporate and Other category consists of the following: | |
Change in fair value relating to financial assets and liabilities for which the fair value option has been elected. | |
Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable. | |
Dividend income from common and preferred stock and distributions from other investments. | |
Changes in the fair value of other securities sold but not yet purchased, futures, hybrid financial instruments, securities purchased under agreements to resell, and securities sold under agreements to repurchase. | |
Income earned on real estate based investments and related realized gains and losses from sales, property level impairments and financing costs. | |
Exchange gains and losses resulting from foreign currency transactions. | |
Earnings from private equity funds and hedge fund investments accounted for under the equity method. | |
Gains and losses recognized in earnings on derivatives for the effective portion and their related hedged items. | |
Aircraft leasing expenses through May 14, 2014, the date of disposal of ILFC, consisted of ILFC interest expense, depreciation expense, impairment charges, fair value adjustments and lease-related charges on aircraft as well as selling, general and administrative expenses and other expenses incurred by ILFC. | |
Cash represents cash on hand and non-interest- bearing demand deposits. | |
Premiums and other receivables – net of allowance include premium balances receivable, amounts due from agents and brokers and policyholders, trade receivables for the DIB and GCM and other receivables. Trade receivables for GCM include cash collateral posted to derivative counterparties that is not eligible to be netted against derivative liabilities. The allowance for doubtful accounts on premiums and other receivables was $428 million and $554 million at December 31, 2014 and 2013, respectively. | |
Other assets consist of sales inducement assets, prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, and restricted cash. | |
We offer sales inducements which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. Sales inducements provided to the contract holder are recognized in Policyholder contract deposits in the Consolidated Balance Sheets. Such amounts are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC (see Note 9 herein). To qualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception. We must also demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest, and are higher than the contract’s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets totaled $629 million and $703 million at December 31, 2014 and 2013, respectively. The amortization expense associated with these assets is reported within Interest credited to policyholder account balances in the Consolidated Statements of Income. Such amortization expense totaled $63 million, $102 million and $162 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
The cost of buildings and furniture and equipment is depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and equipment). Expenditures for maintenance and repairs are charged to income as incurred and expenditures for improvements are capitalized and depreciated. We periodically assess the carrying amount of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized using the straight-line method over a period generally not exceeding five years. Real estate, fixed assets and other long-lived assets are assessed for impairment when impairment indicators exist. | |
Separate accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment objectives and the assets are carried at fair value. The assets of each account are legally segregated and are not subject to claims that arise from any of our other businesses. The liabilities for these accounts are equal to the account assets. For a more detailed discussion of separate accounts, see Note 14 herein. | |
Other liabilities consist of other funds on deposit, other payables, securities sold under agreements to repurchase and securities sold but not yet purchased. We have entered into certain insurance and reinsurance contracts, primarily in our Non-Life Insurance Companies segment, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. Accordingly, the premiums received on such contracts, after deduction for certain related expenses, are recorded as deposits within Other liabilities in the Consolidated Balance Sheets. Net proceeds of these deposits are invested and generate Net investment income. As amounts are paid, consistent with the underlying contracts, the deposit liability is reduced. Also included in Other liabilities are trade payables for the DIB and GCM, which include option premiums received and payables to counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due to clearing brokers and exchanges. Trade payables for GCM also include cash collateral received from derivative counterparties that contractually cannot be netted against derivative assets. | |
Securities sold but not yet purchased represent sales of securities not owned at the time of sale. The obligations arising from such transactions are recorded on a trade-date basis and carried at fair value. Fair values of securities sold but not yet purchased are based on current market prices. | |
Foreign currency: Financial statement accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in Total AIG shareholders’ equity. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a consolidated entity are translated into that entity’s functional currency. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income. Exchange gains and losses resulting from foreign currency transactions are recorded in income. | |
Accounting Standards Adopted During 2014 | |
Certain Obligations Resulting from Joint and Several Liability Arrangements | |
In February 2013, the Financial Accounting Standards Board (FASB) issued an accounting standard that requires us to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date as the sum of (i) the amount we agreed to pay on the basis of our arrangement among our co-obligors and (ii) any additional amount we expect to pay on behalf of our co-obligors. | |
We adopted the standard on its required effective date of January 1, 2014. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of an Investment within a Foreign Entity or of an Investment in a Foreign Entity | |
In March 2013, the FASB issued an accounting standard addressing whether consolidation guidance or foreign currency guidance applies to the release of the cumulative translation adjustment into net income when a parent sells all or a part of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or net assets that are a business (other than a sale of in-substance real estate) within a foreign entity. The standard also resolves the diversity in practice for the cumulative translation adjustment treatment in business combinations achieved in stages involving foreign entities. | |
Under the standard, the entire amount of the cumulative translation adjustment associated with the foreign entity should be released into earnings when there has been: (i) a sale of a subsidiary or group of net assets within a foreign entity and the sale represents a complete or substantially complete liquidation of the foreign entity in which the subsidiary or the net assets had resided; (ii) a loss of a controlling financial interest in an investment in a foreign entity; or (iii) a change in accounting method from applying the equity method to an investment in a foreign entity to consolidating the foreign entity. | |
We adopted the standard on its required effective date of January 1, 2014 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Investment Company Guidance | |
In June 2013, the FASB issued an accounting standard that amends the criteria a company must meet to qualify as an investment company, clarifies the measurement guidance, and requires new disclosures for investment companies. An entity that is regulated by the Securities and Exchange Commission under the Investment Company Act of 1940 (the 1940 Act) qualifies as an investment company. Entities that are not regulated under the 1940 Act must have certain fundamental characteristics and must consider other characteristics to determine whether they qualify as investment companies. An entity’s purpose and design must be considered when making the assessment. | |
An entity that no longer meets the requirements to be an investment company as a result of this standard should present the change in its status as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. An entity that is an investment company should apply the standard prospectively as an adjustment to opening net assets as of the effective date. The adjustment to net assets represents both the difference between the fair value and the carrying amount of the entity’s investments and any amount previously recognized in Accumulated other comprehensive income. | |
We adopted the standard on its required effective date of January 1, 2014 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Presentation of Unrecognized Tax Benefits | |
In July 2013, the FASB issued an accounting standard that requires a liability related to unrecognized tax benefits to be presented as a reduction to the related deferred tax asset for a net operating loss carryforward or a tax credit carryforward. When the carryforwards are not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the applicable jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with the related deferred tax asset. | |
We adopted the standard on its required effective date of January 1, 2014 on a prospective basis. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Future Application of Accounting Standards | |
Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | |
In January 2014, the FASB issued an accounting standard that clarifies that a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, so that the loan is derecognized and the real estate property is recognized, when either (i) the creditor obtains legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveys all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2014. Early adoption is permitted. We plan to adopt the standard on its required effective date of January 1, 2015 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Reporting Discontinued Operations | |
In April 2014, the FASB issued an accounting standard that changes the requirements for presenting a component or group of components of an entity as a discontinued operation and requires new disclosures. Under the standard, the disposal of a component or group of components of an entity should be reported as a discontinued operation if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Disposals of equity method investments, or those reported as held-for-sale, must be presented as a discontinued operation if they meet the new definition. The standard also requires entities to provide disclosures about the disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation. | |
The standard is effective prospectively for all disposals of components (or classification of components as held-for-sale) of an entity that occur within interim and annual periods beginning on or after December 15, 2014. Early adoption is permitted, but only for disposals (or classifications of components as held-for-sale) that have not been reported in financial statements previously issued. We plan to adopt the standard on its required effective date of January 1, 2015 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Revenue Recognition | |
In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and other agreements that are governed under other GAAP guidance, but affects the revenue recognition for certain of our other activities. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2016 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is not permitted. We plan to adopt the standard on its required effective date of January 1, 2017 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. | |
Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures | |
In June 2014, the FASB issued an accounting standard that changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. The standard aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements such that they all will be accounted for as secured borrowings. The standard eliminates sale accounting for repurchase-to-maturity transactions and supersedes the standard under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. | |
The accounting standard and new disclosure requirements for certain transactions accounted for as sales are effective for interim and annual reporting periods beginning after December 15, 2014, while the disclosure requirements for transactions accounted for as secured borrowings are effective for annual reporting periods beginning after December 15, 2014 and for interim reporting periods beginning after March 15, 2015. Early adoption is not permitted. We plan to adopt the standard on its required effective dates and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Accounting for Share-Based Payments with Performance Targets | |
In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The standard may be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. We plan to adopt the standard on its required effective date of January 1, 2016 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity | |
In August 2014, the FASB issued an accounting standard that allows a reporting entity to measure the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity using the fair value of either its financial assets or financial liabilities, whichever is more observable. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The standard may be applied retrospectively to all relevant prior periods presented starting with January 1, 2010 or through a cumulative effect adjustment to retained earnings at the date of adoption. We plan to adopt the standard on its required effective date of January 1, 2016 and are assessing the impact of the standard on our consolidated financial condition, results of operations or cash flows | |
Consolidation: Amendments to the Consolidation Analysis | |
In February 2015, the FASB issued an accounting standard that affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. | |
The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The standard may be applied retrospectively or through a cumulative effect adjustment to retained earnings as of the beginning of the year of adoption. We plan to adopt the standard on its required effective date of January 1, 2016 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
SEGMENT INFORMATION | ||||||||||||||
SEGMENT INFORMATION | 3. SEGMENT INFORMATION | |||||||||||||
In the fourth quarter of 2014, we completed our previously announced reorganization and modified the presentation of our financial results to reflect our new operating structure. The new operating structure includes two reportable segments – Commercial Insurance and Consumer Insurance - and a Corporate and Other category. The Corporate and Other category consists of businesses and items not allocated to our reportable segments. | ||||||||||||||
Prior to the fourth quarter of 2014, AIG reported its results through two reportable segments – AIG Property Casualty and AIG Life and Retirement. The AIG Property Casualty reportable segment had two operating segments – Commercial Insurance and Consumer Insurance in addition to an AIG Property Casualty Other category. The AIG Life and Retirement reportable segment had two operating segments – Retail and Institutional. | ||||||||||||||
We evaluate performance based on revenues and pre-tax operating income (loss). Pre-tax operating income (loss) is derived by excluding certain items from net income (loss) attributable to AIG. See the table below for the items excluded from pre-tax operating income. | ||||||||||||||
To align our financial reporting with the manner in which AIG’s chief operating decision makers review the businesses to assess performance and make decisions about resources to be allocated, the Commercial and Consumer reportable segments are presented as three operating segments for each reportable segment as follows: | ||||||||||||||
Commercial Insurance | ||||||||||||||
The Commercial Insurance segment is presented as three operating segments: | ||||||||||||||
Property Casualty – previously included as part of AIG Property Casualty’s Commercial operating segment | ||||||||||||||
Mortgage Guaranty – previously reported within the Corporate and Other Category | ||||||||||||||
Institutional Markets – previously reported in AIG Life and Retirement’s Institutional operating segment | ||||||||||||||
Property Casualty products are primarily distributed through a network of independent retail and wholesale brokers, and through an independent agency network. Mortgage Guaranty products and services are provided to mortgage lenders including mortgage banks, credit unions and finance agencies. Institutional Markets products are marketed primarily through specialized marketing and consulting firms and structured settlement brokers. | ||||||||||||||
Consumer Insurance | ||||||||||||||
The Consumer Insurance segment is presented as three operating segments: | ||||||||||||||
Retirement – consists of the product lines Fixed Annuities, Retirement Income Solutions, Group Retirement, and Retail Mutual Funds and Advisory Services, previously included in AIG Life and Retirement’s Retail and Institutional operating segments. | ||||||||||||||
Life – consists of businesses previously included in AIG Life and Retirement’s Retail operating segment as well as the international life business previously included in AIG Property Casualty’s Consumer operating segment. | ||||||||||||||
Personal Insurance – consists of Personal Lines and Accident & Health product lines previously reported as a component of AIG Property Casualty’s Consumer operating segment. | ||||||||||||||
Retirement and Life products are distributed through a unified multi-channel distribution network that includes banks, broker-dealers, independent marking organizations, financial advisors, independent insurance agents and career agents. Personal insurance products are distributed primarily through agents and brokers, as well as through direct marketing and partner organizations. | ||||||||||||||
Investment income is allocated between the Property Casualty and Personal Insurance operating segments based on an internal investment income allocation model. The model estimates investable funds based primarily on loss reserves and allocated capital. | ||||||||||||||
The run-off insurance businesses previously reported in AIG Property Casualty’s Other category are now presented in Corporate and Other. | ||||||||||||||
Corporate and Other | ||||||||||||||
Our Corporate and Other includes results from: | ||||||||||||||
Direct Investment book | ||||||||||||||
Global Capital Markets | ||||||||||||||
Retained Interests, which represent the fair value gains or losses, prior to their sale in 2012, of the AIA Group Limited (AIA) ordinary shares retained following the AIA initial public offering; the MetLife, Inc. (MetLife) securities that were received as consideration from the sale of American Life Insurance Company (ALICO); and the fair value gains or losses, prior to the FRBNY liquidation of Maiden Lane III LLC (ML III) assets, on the retained interest in ML III | ||||||||||||||
AIG Parent, Run-off Insurance Lines, and Other, and | ||||||||||||||
Aircraft Leasing through May 14, 2014, the date of our sale of ILFC. | ||||||||||||||
Certain of our management activities, such as investment management, enterprise risk management, liquidity management and capital management, and our balance sheet reporting, are conducted on a legal entity basis. We group our insurance-related legal entities into two categories: Non-Life Insurance Companies, and Life Insurance Companies. | ||||||||||||||
Non-Life Insurance Companies include the following major property casualty and mortgage guaranty companies: National Union Fire Insurance Company of Pittsburgh, Pa.(National Union); American Home Assurance Company (American Home); Lexington Insurance Company (Lexington); Fuji Fire and Marine Insurance Company Limited (Fuji Fire); American Home Assurance Company, Ltd. (American Home Japan); AIG Asia Pacific Insurance, Pte, Ltd.; AIG Europe Limited and United Guaranty Residential Insurance Company (UGRIC). | ||||||||||||||
Life Insurance Companies include the following major operating companies: American General Life Insurance Company (American General Life); The Variable Annuity Life Insurance Company (VALIC); The United States Life Insurance Company in the City of New York (U.S. Life) and AIG Fuji Life Insurance Company Limited (Fuji Life). | ||||||||||||||
Prior periods have been revised to conform to the current period presentation for the above segment changes. | ||||||||||||||
The following table presents AIG’s continuing operations by reportable segment: | ||||||||||||||
Net | Depreciation | Pre-Tax | ||||||||||||
Total | Investment | Interest | and | Operating | ||||||||||
(in millions) | Revenues | Income | Expense | Amortization | Income (Loss) | |||||||||
2014 | ||||||||||||||
Commercial Insurance | ||||||||||||||
Property Casualty | $ | 25,183 | $ | 4,298 | $ | - | $ | 2,445 | $ | 4,248 | ||||
Mortgage Guaranty | 1,042 | 138 | - | 56 | 592 | |||||||||
Institutional Markets | 2,576 | 1,957 | 7 | -215 | 670 | |||||||||
Total Commercial Insurance | 28,801 | 6,393 | 7 | 2,286 | 5,510 | |||||||||
Consumer Insurance | ||||||||||||||
Retirement | 9,784 | 6,489 | 23 | -231 | 3,495 | |||||||||
Life | 6,321 | 2,199 | 7 | 130 | 580 | |||||||||
Personal Insurance | 12,364 | 394 | 2 | 2,067 | 399 | |||||||||
Total Consumer Insurance | 28,469 | 9,082 | 32 | 1,966 | 4,474 | |||||||||
Corporate and Other | ||||||||||||||
Direct Investment book | 1,479 | - | 218 | -40 | 1,241 | |||||||||
Global Capital Markets | 474 | - | - | - | 359 | |||||||||
AIG Parent and Other* | 2,960 | 700 | 1,598 | 386 | -1,989 | |||||||||
Aircraft Leasing | - | - | - | - | - | |||||||||
Consolidation and elimination | -716 | - | -11 | - | 1 | |||||||||
Total Corporate and Other | 4,197 | 700 | 1,805 | 346 | -388 | |||||||||
AIG Consolidation and elimination | -466 | -356 | -126 | -181 | -22 | |||||||||
Total AIG Consolidated pre-tax operating income | $ | 61,001 | $ | 15,819 | $ | 1,718 | $ | 4,417 | $ | 9,574 | ||||
Reconciling Items from pre-tax operating income to pre-tax income: | ||||||||||||||
Changes in fair values of fixed maturity securities designated to hedge | ||||||||||||||
living benefit liabilities, net of interest expense | 260 | 260 | - | - | 260 | |||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to | ||||||||||||||
net realized capital gains | - | - | - | - | -217 | |||||||||
Loss on extinguishment of debt | - | - | - | - | -2,282 | |||||||||
Net realized capital gains | 739 | - | - | - | 739 | |||||||||
Income from divested businesses | 1,602 | - | - | 31 | 2,169 | |||||||||
Legal settlements related to legacy crisis matters | 804 | - | - | - | 804 | |||||||||
Legal reserves related to legacy crisis matters | - | - | - | - | -546 | |||||||||
Pre-tax income | $ | 64,406 | $ | 16,079 | $ | 1,718 | $ | 4,448 | $ | 10,501 | ||||
2013 | ||||||||||||||
Commercial Insurance | ||||||||||||||
Property Casualty | $ | 25,108 | $ | 4,431 | $ | 8 | $ | 2,393 | $ | 4,095 | ||||
Mortgage Guaranty | 941 | 132 | - | 50 | 205 | |||||||||
Institutional Markets | 2,813 | 2,090 | 1 | -160 | 680 | |||||||||
Total Commercial Insurance | 28,862 | 6,653 | 9 | 2,283 | 4,980 | |||||||||
Consumer Insurance | ||||||||||||||
Retirement | 9,431 | 6,628 | 3 | -165 | 3,490 | |||||||||
Life | 6,397 | 2,269 | 4 | 214 | 806 | |||||||||
Personal Insurance | 12,832 | 455 | 3 | 2,110 | 268 | |||||||||
Total Consumer Insurance | 28,660 | 9,352 | 10 | 2,159 | 4,564 | |||||||||
Corporate and Other | ||||||||||||||
Direct Investment book | 1,825 | - | 353 | -80 | 1,448 | |||||||||
Global Capital Markets | 833 | - | - | - | 625 | |||||||||
AIG Parent and Other* | 1,908 | 309 | 2,112 | 301 | -2,396 | |||||||||
Aircraft Leasing | - | - | - | - | - | |||||||||
Consolidation and elimination | -547 | - | -14 | - | 4 | |||||||||
Total Corporate and Other | 4,019 | 309 | 2,451 | 221 | -319 | |||||||||
AIG Consolidation and elimination | -17 | -343 | -328 | -26 | 165 | |||||||||
Total AIG Consolidated pre-tax operating income | $ | 61,524 | $ | 15,971 | $ | 2,142 | $ | 4,637 | $ | 9,390 | ||||
Reconciling Items from pre-tax operating income to pre-tax income: | ||||||||||||||
Changes in fair values of fixed maturity securities designated to hedge | ||||||||||||||
living benefit liabilities, net of interest expense | -161 | -161 | - | - | -161 | |||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to | ||||||||||||||
net realized capital gains | - | - | - | - | -1,608 | |||||||||
Other income (expense) - net | - | - | - | - | -72 | |||||||||
Loss on extinguishment of debt | - | - | - | - | -651 | |||||||||
Net realized capital gains | 1,939 | - | - | - | 1,939 | |||||||||
Loss from divested businesses | 4,420 | - | - | 76 | -177 | |||||||||
Legal settlements related to legacy crisis matters | 1,152 | - | - | - | 1,152 | |||||||||
Legal reserves related to legacy crisis matters | - | - | - | - | -444 | |||||||||
Pre-tax income | $ | 68,874 | $ | 15,810 | $ | 2,142 | $ | 4,713 | $ | 9,368 | ||||
2012 | ||||||||||||||
Commercial Insurance | ||||||||||||||
Property Casualty | $ | 24,799 | $ | 3,951 | $ | 6 | $ | 2,736 | $ | 1,681 | ||||
Mortgage Guaranty | 861 | 146 | - | 44 | 9 | |||||||||
Institutional Markets | 2,626 | 2,066 | - | -40 | 525 | |||||||||
Total Commercial Insurance | 28,286 | 6,163 | 6 | 2,740 | 2,215 | |||||||||
Consumer Insurance | ||||||||||||||
Retirement | 8,709 | 6,502 | - | 1 | 2,801 | |||||||||
Life | 6,457 | 2,283 | 4 | 267 | 736 | |||||||||
Personal Insurance | 13,580 | 477 | - | 2,106 | 199 | |||||||||
Total Consumer Insurance | 28,746 | 9,262 | 4 | 2,374 | 3,736 | |||||||||
Corporate and Other | ||||||||||||||
Direct Investment book | 1,607 | - | 369 | -121 | 1,215 | |||||||||
Global Capital Markets | 749 | - | - | - | 557 | |||||||||
Retained Interest | 4,957 | 4,957 | - | - | 4,957 | |||||||||
AIG Parent and Other* | 2,028 | 459 | 2,264 | 316 | -2,724 | |||||||||
Aircraft Leasing | - | - | - | - | - | |||||||||
Consolidation and elimination | -405 | - | -27 | - | - | |||||||||
Total Corporate and Other | 8,936 | 5,416 | 2,606 | 195 | 4,005 | |||||||||
AIG Consolidation and elimination | -589 | -535 | -297 | -2 | -18 | |||||||||
Total AIG Consolidated pre-tax operating income | $ | 65,379 | $ | 20,306 | $ | 2,319 | $ | 5,307 | $ | 9,938 | ||||
Reconciling Items from pre-tax operating income to pre-tax income: | ||||||||||||||
Changes in fair values of fixed maturity securities designated to hedge | ||||||||||||||
living benefit liabilities, net of interest expense | 37 | 37 | - | - | 37 | |||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to | ||||||||||||||
net realized capital gains | - | - | - | - | -1,213 | |||||||||
Loss on extinguishment of debt | - | - | - | - | -32 | |||||||||
Net realized capital gains | 1,086 | - | - | - | 1,086 | |||||||||
Loss from divested businesses | 4,502 | - | - | 2,042 | -6,411 | |||||||||
Legal settlements related to legacy crisis matters | 210 | - | - | - | 210 | |||||||||
Legal reserves related to legacy crisis matters | - | - | - | - | -754 | |||||||||
Non-qualifying derivative hedging gains, excluding net RCG | - | - | - | - | 30 | |||||||||
Pre-tax income | $ | 71,214 | $ | 20,343 | $ | 2,319 | $ | 7,349 | $ | 2,891 | ||||
* Includes Run-off Insurance Lines and Other Businesses. The following table presents AIG’s year-end identifiable assets and capital expenditures by reportable segment: | ||||||||||||||
Year-End Identifiable Assets | Capital Expenditures | |||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Total Non-Life Insurance Companies | $ | 164,299 | $ | 168,738 | $ | 697 | $ | 370 | ||||||
Total Life Insurance Companies | 301,295 | 287,464 | 114 | 66 | ||||||||||
Corporate and Other | ||||||||||||||
Direct Investment book | 15,263 | 23,541 | - | - | ||||||||||
Global Capital Markets | 3,270 | 6,406 | - | - | ||||||||||
AIG Parent and Other | 91,277 | 88,270 | 523 | 413 | ||||||||||
Aircraft Leasing* | - | 39,313 | 498 | 1,883 | ||||||||||
Consolidation and Elimination | 49,584 | 34,031 | - | - | ||||||||||
Total Corporate and Other | 159,394 | 191,561 | 1,021 | 2,296 | ||||||||||
AIG Consolidation and Elimination | -109,407 | -106,434 | - | - | ||||||||||
Total Assets | $ | 515,581 | $ | 541,329 | $ | 1,832 | $ | 2,732 | ||||||
* 2013 includes Aircraft Leasing assets classified as assets held-for-sale on the Consolidated Balance Sheets. | ||||||||||||||
The following table presents AIG’s consolidated total revenues and real estate and other fixed assets, net of accumulated depreciation, by major geographic area: | ||||||||||||||
Real Estate and Other Fixed Assets, | ||||||||||||||
Total Revenues* | Net of Accumulated Depreciation | |||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||
U.S. | $ | 44,274 | $ | 46,078 | $ | 47,406 | $ | 1,886 | $ | 1,606 | $ | 1,391 | ||
Asia Pacific | 7,523 | 8,804 | 9,498 | 521 | 448 | 516 | ||||||||
Other Foreign | 12,609 | 13,992 | 14,310 | 293 | 261 | 306 | ||||||||
Consolidated | $ | 64,406 | $ | 68,874 | $ | 71,214 | $ | 2,700 | $ | 2,315 | $ | 2,213 | ||
* Revenues are generally reported according to the geographic location of the reporting unit. |
HELDFORSALE_CLASSIFICATION_DIV
HELD-FOR-SALE CLASSIFICATION, DIVESTED BUSINESSES AND DISCONTINUED OPERATIONS | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
HELD-FOR-SALE CLASSIFICATION, DIVESTED BUSINESSES AND DISCONTINUED OPERATIONS | |||||||
HELD-FOR-SALE CLASSIFICATION, DIVESTED BUSINESSES AND DISCONTINUED OPERATIONS | 4. HELD-FOR-SALE CLASSIFICATION, Divested Businesses AND Discontinued Operations | ||||||
Held-For-Sale Classification | |||||||
We report a business as held for sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. Depreciation and amortization expense is not recorded on assets of a business after it is classified as held for sale. Assets and liabilities related to a business classified as held for sale are segregated in the Consolidated Balance Sheets in the period in which the business is classified as held for sale. | |||||||
The following table summarizes the components of ILFC assets and liabilities held-for-sale on the Consolidated Balance Sheets at December 31, 2013: | |||||||
December 31, | |||||||
(in millions) | 2013 | ||||||
Assets: | |||||||
Equity securities | $ | 3 | |||||
Mortgage and other loans receivable, net | 229 | ||||||
Flight equipment primarily under operating leases, net of accumulated depreciation | 35,508 | ||||||
Short-term investments | 658 | ||||||
Cash | 88 | ||||||
Premiums and other receivables, net of allowance | 318 | ||||||
Other assets | 2,066 | ||||||
Assets held for sale | 38,870 | ||||||
Less: Loss accrual | -9,334 | ||||||
Total assets held for sale | $ | 29,536 | |||||
Liabilities: | |||||||
Other liabilities | $ | 3,127 | |||||
Long-term debt | 21,421 | ||||||
Total liabilities held for sale | $ | 24,548 | |||||
International Lease Finance Corporation | |||||||
On May 14, 2014, we completed the sale of 100 percent of the common stock of ILFC to AerCap Ireland Limited, a wholly owned subsidiary of AerCap, in exchange for total consideration of approximately $7.6 billion, including cash and 97.6 million newly issued AerCap common shares, valued at approximately $4.6 billion based on AerCap’s closing price per share of $47.01 on May 13, 2014. Net cash proceeds to AIG were $2.4 billion after the settlement of intercompany loans, and AIG recorded pre-tax and after-tax gains of approximately $2.2 billion and $1.4 billion, respectively, for the year ended December 31, 2014. In connection with the AerCap Transaction, we entered into a five-year credit agreement for a senior unsecured revolving credit facility between AerCap Ireland Capital Limited, as borrower, and AIG Parent as lender (the Revolving Credit Facility). The Revolving Credit Facility provides for an aggregate commitment of $1.0 billion and permits loans for general corporate purposes after the closing of the AerCap Transaction. At December 31, 2014, no amounts were outstanding under the Revolving Credit Facility. | |||||||
As a result of the AerCap Transaction, we own approximately 46 percent of the outstanding common stock of AerCap. This common stock is subject to certain restrictions as to the amount and timing of potential sales as set forth in the Stockholders’ Agreement and Registration Rights Agreement between AIG and AerCap. We account for our interest in AerCap using the equity method of accounting. The difference between the carrying amount of our investment in AerCap common stock and our share of the underlying equity in the net assets of AerCap was approximately $1.4 billion at December 31, 2014. Approximately $0.4 billion of this difference was allocated to the assets and liabilities of AerCap based on their respective fair values and is being amortized into income over the estimated lives of the related assets and liabilities. The remainder was allocated to goodwill. | |||||||
ILFC’s results of operations are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Consolidated Statements of Income through the date of the completion of the sale. ILFC’s assets and liabilities were classified as held-for-sale at December 31, 2013 in the Consolidated Balance Sheets. | |||||||
Discontinued Operations | |||||||
We report the results of operations of a business as discontinued operations if the business is classified as held for sale, the operations and cash flows of the business have been or will be eliminated from our ongoing operations as a result of a disposal transaction and we will not have any significant continuing involvement in the operations of the business after the disposal transaction. The results of discontinued operations are reported in Discontinued Operations in the Consolidated Statements of Income for current and prior periods commencing in the period in which the business meets the criteria of a discontinued operation, and include any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell. | |||||||
The results of operations for the following business is presented as discontinued operations in our Consolidated Statements of Income. | |||||||
In connection with the 2010 sale of American Life Insurance Company (ALICO) to MetLife, Inc. (MetLife), we recognized the following income (loss) from discontinued operations: | |||||||
Years Ended December 31, | |||||||
(in millions) | 2014 | 2013 | 2012 | ||||
Gain on sale | $ | 23 | $ | 150 | $ | 1 | |
Income from discontinued operations, before income tax expense | 23 | 150 | 1 | ||||
Income tax expense | 73 | 66 | - | ||||
Income from discontinued operations, net of income tax expense | $ | -50 | $ | 84 | $ | 1 |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
FAIR VALUE MEASUREMENTS | 5. FAIR VALUE MEASUREMENTS | ||||||||||||||||
Fair Value Measurements on a Recurring Basis | |||||||||||||||||
We carry certain of our financial instruments at fair value. We define the fair value of a financial instrument as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are responsible for the determination of the value of the investments carried at fair value and the supporting methodologies and assumptions. | |||||||||||||||||
The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. We maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions. | |||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||
Assets and liabilities recorded at fair value in the Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs: | |||||||||||||||||
Level 1: Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments. | |||||||||||||||||
Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. | |||||||||||||||||
Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. | |||||||||||||||||
The following is a description of the valuation methodologies used for instruments carried at fair value. These methodologies are applied to assets and liabilities across the levels discussed above, and it is the observability of the inputs used that determines the appropriate level in the fair value hierarchy for the respective asset or liability. | |||||||||||||||||
Valuation Methodologies of Financial Instruments Measured at Fair Value | |||||||||||||||||
Incorporation of Credit Risk in Fair Value Measurements | |||||||||||||||||
Our Own Credit Risk. Fair value measurements for certain liabilities incorporate our own credit risk by determining the explicit cost for each counterparty to protect against its net credit exposure to us at the balance sheet date by reference to observable AIG CDS or cash bond spreads. A derivative counterparty’s net credit exposure to us is determined based on master netting agreements, when applicable, which take into consideration all derivative positions with us, as well as collateral we post with the counterparty at the balance sheet date. We calculate the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates. | |||||||||||||||||
Counterparty Credit Risk. Fair value measurements for freestanding derivatives incorporate counterparty credit by determining the explicit cost for us to protect against our net credit exposure to each counterparty at the balance sheet date by reference to observable counterparty CDS spreads, when available. When not available, other directly or indirectly observable credit spreads will be used to derive the best estimates of the counterparty spreads. Our net credit exposure to a counterparty is determined based on master netting agreements, which take into consideration all derivative positions with the counterparty, as well as collateral posted by the counterparty at the balance sheet date. | |||||||||||||||||
Fair values for fixed maturity securities based on observable market prices for identical or similar instruments implicitly incorporate counterparty credit risk. Fair values for fixed maturity securities based on internal models incorporate counterparty credit risk by using discount rates that take into consideration cash issuance spreads for similar instruments or other observable information. | |||||||||||||||||
The cost of credit protection is determined under a discounted present value approach considering the market levels for single name CDS spreads for each specific counterparty, the mid market value of the net exposure (reflecting the amount of protection required) and the weighted average life of the net exposure. CDS spreads are provided to us by an independent third party. We utilize an interest rate based on the benchmark London Interbank Offered Rate (LIBOR) curve to derive our discount rates. | |||||||||||||||||
While this approach does not explicitly consider all potential future behavior of the derivative transactions or potential future changes in valuation inputs, we believe this approach provides a reasonable estimate of the fair value of the assets and liabilities, including consideration of the impact of non-performance risk. | |||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||
Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure fixed maturity securities at fair value. Market price data is generally obtained from dealer markets. | |||||||||||||||||
We employ independent third-party valuation service providers to gather, analyze, and interpret market information to derive fair value estimates for individual investments, based upon market-accepted methodologies and assumptions. The methodologies used by these independent third-party valuation service providers are reviewed and understood by management, through periodic discussion with and information provided by the independent third-party valuation service providers. In addition, as discussed further below, control processes are applied to the fair values received from independent third-party valuation service providers to ensure the accuracy of these values. | |||||||||||||||||
Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of market-accepted valuation methodologies, which may utilize matrix pricing, financial models, accompanying model inputs and various assumptions, provide a single fair value measurement for individual securities. The inputs used by the valuation service providers include, but are not limited to, market prices from completed transactions for identical securities and transactions for comparable securities, benchmark yields, interest rate yield curves, credit spreads, prepayment rates, default rates, currency rates, quoted prices for similar securities and other market-observable information, as applicable. If fair value is determined using financial models, these models generally take into account, among other things, market observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. | |||||||||||||||||
We have control processes designed to ensure that the fair values received from independent third-party valuation service providers are accurately recorded, that their data inputs and valuation techniques are appropriate and consistently applied and that the assumptions used appear reasonable and consistent with the objective of determining fair value. We assess the reasonableness of individual security values received from independent third-party valuation service providers through various analytical techniques, and have procedures to escalate related questions internally and to the independent third-party valuation service providers for resolution. To assess the degree of pricing consensus among various valuation service providers for specific asset types, we conduct comparisons of prices received from available sources. We use these comparisons to establish a hierarchy for the fair values received from independent third-party valuation service providers to be used for particular security classes. We also validate prices for selected securities through reviews by members of management who have relevant expertise and who are independent of those charged with executing investing transactions. | |||||||||||||||||
When our independent third-party valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a price quote, which is generally non-binding, or by employing market accepted valuation models. Broker prices may be based on an income approach, which converts expected future cash flows to a single present value amount, with specific consideration of inputs relevant to particular security types. For structured securities, such inputs may include ratings, collateral types, geographic concentrations, underlying loan vintages, loan delinquencies and defaults, prepayments, and weighted average coupons and maturities. When the volume or level of market activity for a security is limited, certain inputs used to determine fair value may not be observable in the market. Broker prices may also be based on a market approach that considers recent transactions involving identical or similar securities. Fair values provided by brokers are subject to similar control processes to those noted above for fair values from independent third-party valuation service providers, including management reviews. For those corporate debt instruments (for example, private placements) that are not traded in active markets or that are subject to transfer restrictions, valuations reflect illiquidity and non-transferability, based on available market evidence. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on credit spreads, yields or price levels of comparable securities, adjusted for illiquidity and structure. Fair values determined internally are also subject to management review to ensure that valuation models and related inputs are reasonable. | |||||||||||||||||
The methodology above is relevant for all fixed maturity securities including residential mortgage backed securities (RMBS), commercial mortgage backed securities (CMBS), collateralized debt obligations (CDO), other asset-backed securities (ABS) and fixed maturity securities issued by government sponsored entities and corporate entities. | |||||||||||||||||
Equity Securities Traded in Active Markets | |||||||||||||||||
Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure equity securities at fair value. Market price data is generally obtained from exchange or dealer markets. | |||||||||||||||||
Mortgage and Other Loans Receivable | |||||||||||||||||
We estimate the fair value of mortgage and other loans receivable that are measured at fair value by using dealer quotations, discounted cash flow analyses and/or internal valuation models. The determination of fair value considers inputs such as interest rate, maturity, the borrower’s creditworthiness, collateral, subordination, guarantees, past-due status, yield curves, credit curves, prepayment rates, market pricing for comparable loans and other relevant factors. | |||||||||||||||||
Other Invested Assets | |||||||||||||||||
We initially estimate the fair value of investments in certain hedge funds, private equity funds and other investment partnerships by reference to the transaction price. Subsequently, we generally obtain the fair value of these investments from net asset value information provided by the general partner or manager of the investments, the financial statements of which are generally audited annually. We consider observable market data and perform certain control procedures to validate the appropriateness of using the net asset value as a fair value measurement. The fair values of other investments carried at fair value, such as direct private equity holdings, are initially determined based on transaction price and are subsequently estimated based on available evidence such as market transactions in similar instruments, other financing transactions of the issuer and other available financial information for the issuer, with adjustments made to reflect illiquidity as appropriate. | |||||||||||||||||
Short-term Investments | |||||||||||||||||
For short-term investments that are measured at amortized cost, the carrying amounts of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk. Securities purchased under agreements to resell (reverse repurchase agreements) are generally treated as collateralized receivables. We report certain receivables arising from securities purchased under agreements to resell as Short-term investments in the Consolidated Balance Sheets. When these receivables are measured at fair value, we use market-observable interest rates to determine fair value. | |||||||||||||||||
Separate Account Assets | |||||||||||||||||
Separate account assets are composed primarily of registered and unregistered open-end mutual funds that generally trade daily and are measured at fair value in the manner discussed above for equity securities traded in active markets. | |||||||||||||||||
Freestanding Derivatives | |||||||||||||||||
Derivative assets and liabilities can be exchange-traded or traded over-the-counter (OTC). We generally value exchange-traded derivatives such as futures and options using quoted prices in active markets for identical derivatives at the balance sheet date. | |||||||||||||||||
OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in the instrument, as well as the availability of pricing information in the market. We generally use similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment. | |||||||||||||||||
For certain OTC derivatives that trade in less liquid markets, where we generally do not have corroborating market evidence to support significant model inputs and cannot verify the model to market transactions, the transaction price may provide the best estimate of fair value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so the model value at inception equals the transaction price. We will update valuation inputs in these models only when corroborated by evidence such as similar market transactions, independent third-party valuation service providers and/or broker or dealer quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. | |||||||||||||||||
Embedded Policy Derivatives | |||||||||||||||||
Certain variable annuity and equity-indexed annuity and life contracts contain embedded policy derivatives that we bifurcate from the host contracts and account for separately at fair value, with changes in fair value recognized in earnings. These embedded derivatives are classified within Policyholder contract deposits. We have concluded these contracts contain (i) written option guarantees on minimum accumulation value, (ii) a series of written options that guarantee withdrawals from the highest anniversary value within a specific period or for life, or (iii) equity-indexed written options that meet the criteria of derivatives that must be bifurcated. | |||||||||||||||||
The fair value of embedded policy derivatives contained in certain variable annuity and equity-indexed annuity and life contracts is measured based on actuarial and capital market assumptions related to projected cash flows over the expected lives of the contracts. These cash flow estimates primarily include benefits and related fees assessed, when applicable, and incorporate expectations about policyholder behavior. Estimates of future policyholder behavior are subjective and based primarily on our historical experience. | |||||||||||||||||
With respect to embedded policy derivatives in our variable annuity contracts, because of the dynamic and complex nature of the expected cash flows, risk neutral valuations are used. Estimating the underlying cash flows for these products involves judgments regarding expected market rates of return, market volatility, correlations of market variables to funds, fund performance, discount rates and policyholder behavior. The portion of fees attributable to the fair value of expected benefit payments are included within the fair value measurement of these embedded policy derivatives and related fees are classified in net realized gain/loss as collected consistent with other changes in the fair value of these embedded policy derivatives. Any additional fees not attributed to the embedded derivative are excluded from the fair value measurement and classified in policy fees as collected. | |||||||||||||||||
With respect to embedded policy derivatives in our equity-indexed annuity and life contracts, option pricing models are used to estimate fair value, taking into account assumptions for future equity index growth rates, volatility of the equity index, future interest rates, and determinations on adjusting the participation rate and the cap on equity-indexed credited rates in light of market conditions and policyholder behavior assumptions. These methodologies incorporate an explicit risk margin to take into consideration market participant estimates of projected cash flows and policyholder behavior. | |||||||||||||||||
We also incorporate our own risk of non-performance in the valuation of the embedded policy derivatives associated with variable annuity and equity-indexed annuity and life contracts. Expected cash flows are discounted using the interest rate swap curve (swap curve), which is commonly viewed as being consistent with the credit spreads for highly-rated financial institutions (S&P AA-rated or above). A swap curve shows the fixed-rate leg of a non-complex swap against the floating rate (for example, LIBOR) leg of a related tenor. The non-performance risk adjustment reflects a market participant’s view of our claims-paying ability by incorporating an additional spread to the swap curve used to value embedded policy derivatives. | |||||||||||||||||
Super Senior Credit Default Swap Portfolio | |||||||||||||||||
We value CDS transactions written on the super senior risk layers of designated pools of debt securities or loans using internal valuation models, third-party price estimates and market indices. The principal market was determined to be the market in which super senior CDSs of this type and size would be transacted, or have been transacted, with the greatest volume or level of activity. We have determined that the principal market participants, therefore, would consist of other large financial institutions who participate in sophisticated over-the-counter derivatives markets. The specific valuation methodologies vary based on the nature of the referenced obligations and availability of market prices. | |||||||||||||||||
The valuation of the super senior credit derivatives is complex because of the limited availability of market observable information due to the lack of trading and price transparency in certain structured finance markets. These market conditions have increased the reliance on management estimates and judgments in arriving at an estimate of fair value for financial reporting purposes. Further, disparities in the valuation methodologies employed by market participants and the varying judgments reached by such participants when assessing volatile markets have increased the likelihood that the various parties to these instruments may arrive at significantly different estimates of their fair values. | |||||||||||||||||
Our valuation methodologies for the super senior CDS portfolio have evolved over time in response to market conditions and the availability of market observable information. We have sought to calibrate the methodologies to available market information and to review the assumptions of the methodologies on a regular basis. | |||||||||||||||||
Multi-sector CDO portfolios: We use a modified version of the Binomial Expansion Technique (BET) model to value our CDS portfolio written on super senior tranches of multi-sector CDOs of ABS. The BET model was developed in 1996 by a major rating agency to generate expected loss estimates for CDO tranches and derive a credit rating for those tranches, and remains widely used. | |||||||||||||||||
We have adapted the BET model to estimate the price of the super senior risk layer or tranche of the CDO. We modified the BET model to imply default probabilities from market prices for the underlying securities and not from rating agency assumptions. To generate the estimate, the model uses the price estimates for the securities comprising the portfolio of a CDO as an input and converts those estimates to credit spreads over current LIBOR-based interest rates. These credit spreads are used to determine implied probabilities of default and expected losses on the underlying securities. This data is then aggregated and used to estimate the expected cash flows of the super senior tranche of the CDO. | |||||||||||||||||
Prices for the individual securities held by a CDO are obtained in most cases from the CDO collateral managers, to the extent available. CDO collateral managers provided market prices for 49 percent and 46 percent of the underlying securities used in the valuation at December 31, 2014 and 2013. When a price for an individual security is not provided by a CDO collateral manager, we derive the price through a pricing matrix using prices from CDO collateral managers for similar securities. Matrix pricing is a mathematical technique used principally to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the relationship of the security to other benchmark quoted securities. Substantially all of the CDO collateral managers who provided prices used dealer prices for all or part of the underlying securities, in some cases supplemented by independent third-party valuation service providers. | |||||||||||||||||
The BET model also uses diversity scores, weighted average lives, recovery rates and discount rates. We employ a Monte Carlo simulation to assist in quantifying the effect on the valuation of the CDO of the unique aspects of the CDO’s structure such as triggers that divert cash flows to the most senior part of the capital structure. The Monte Carlo simulation is used to determine whether an underlying security defaults in a given simulation scenario and, if it does, the security’s implied random default time and expected loss. This information is used to project cash flow streams and to determine the expected losses of the portfolio. | |||||||||||||||||
In addition to calculating an estimate of the fair value of the super senior CDO security referenced in the CDSs using our internal model, we also consider the price estimates for the super senior CDO securities provided by third parties, including counterparties to these transactions, to validate the results of the model and to determine the best available estimate of fair value. In determining the fair value of the super senior CDO security referenced in the CDSs, we use a consistent process that considers all available pricing data points and eliminates the use of outlying data points. When pricing data points are within a reasonable range an averaging technique is applied. | |||||||||||||||||
Corporate debt/Collateralized loan obligation (CLO) portfolios: For CDSs written on portfolios of investment-grade corporate debt, we use a mathematical model that produces results that are closely aligned with prices received from third parties. This methodology uses the current market credit spreads of the names in the portfolios along with the base correlations implied by the current market prices of comparable tranches of the relevant market traded credit indices as inputs. | |||||||||||||||||
We estimate the fair value of our obligations resulting from CDSs written on CLOs to be equivalent to the par value less the current market value of the referenced obligation. Accordingly, the value is determined by obtaining third-party quotations on the underlying super senior tranches referenced under the CDS contract. | |||||||||||||||||
Long-Term Debt | |||||||||||||||||
The fair value of non-structured liabilities is generally determined by using market prices from exchange or dealer markets, when available, or discounting expected cash flows using the appropriate discount rate for the applicable maturity. We determine the fair value of structured liabilities and hybrid financial instruments (where performance is linked to structured interest rates, inflation or currency risks) using the appropriate derivative valuation methodology (described above) given the nature of the embedded risk profile. In addition, adjustments are made to the valuations of both non-structured and structured liabilities to reflect our own creditworthiness based on the methodology described under the caption “Incorporation of Credit Risk in Fair Value Measurements – Our Own Credit Risk” above. | |||||||||||||||||
Borrowings under obligations of guaranteed investment agreements (GIAs), which are guaranteed by us, are recorded at fair value using discounted cash flow calculations based on interest rates currently being offered for similar contracts and our current market observable implicit credit spread rates with maturities consistent with those remaining for the contracts being valued. Obligations may be called at various times prior to maturity at the option of the counterparty. Interest rates on these borrowings are primarily fixed, vary by maturity and range up to 8.5 percent. | |||||||||||||||||
Other Liabilities | |||||||||||||||||
Other liabilities measured at fair value include certain securities sold under agreements to repurchase and certain securities sold but not yet purchased. Liabilities arising from securities sold under agreements to repurchase are generally treated as collateralized borrowings. We estimate the fair value of liabilities arising under these agreements by using market-observable interest rates. This methodology considers such factors as the coupon rate, yield curves and other relevant factors. Fair values for securities sold but not yet purchased are based on current market prices. | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||
The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used: | |||||||||||||||||
31-Dec-14 | 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 | $ | 322 | $ | 2,670 | $ | - | $ | - | $ | - | $ | 2,992 | |||||
Obligations of states, municipalities and political subdivisions | - | 25,500 | 2,159 | - | - | 27,659 | |||||||||||
Non-U.S. governments | 742 | 20,323 | 30 | - | - | 21,095 | |||||||||||
Corporate debt | - | 142,550 | 1,883 | - | - | 144,433 | |||||||||||
RMBS | - | 20,715 | 16,805 | - | - | 37,520 | |||||||||||
CMBS | - | 10,189 | 2,696 | - | - | 12,885 | |||||||||||
CDO/ABS | - | 7,165 | 6,110 | - | - | 13,275 | |||||||||||
Total bonds available for sale | 1,064 | 229,112 | 29,683 | - | - | 259,859 | |||||||||||
Other bond securities: | |||||||||||||||||
U.S. government and government sponsored entities | 130 | 5,368 | - | - | - | 5,498 | |||||||||||
Obligations of states, municipalities and political subdivisions | - | 122 | - | - | - | 122 | |||||||||||
Non-U.S. governments | - | 2 | - | - | - | 2 | |||||||||||
Corporate debt | - | 719 | - | - | - | 719 | |||||||||||
RMBS | - | 989 | 1,105 | - | - | 2,094 | |||||||||||
CMBS | - | 708 | 369 | - | - | 1,077 | |||||||||||
CDO/ABS | - | 2,751 | 7,449 | - | - | 10,200 | |||||||||||
Total other bond securities | 130 | 10,659 | 8,923 | - | - | 19,712 | |||||||||||
Equity securities available for sale: | |||||||||||||||||
Common stock | 3,626 | 2 | 1 | - | - | 3,629 | |||||||||||
Preferred stock | 25 | - | - | - | - | 25 | |||||||||||
Mutual funds | 738 | 3 | - | - | - | 741 | |||||||||||
Total equity securities available for sale | 4,389 | 5 | 1 | - | - | 4,395 | |||||||||||
Other equity securities | 1,024 | 25 | - | - | - | 1,049 | |||||||||||
Mortgage and other loans receivable | - | - | 6 | - | - | 6 | |||||||||||
Other invested assets | 2 | 3,742 | 5,650 | - | - | 9,394 | |||||||||||
Derivative assets: | |||||||||||||||||
Interest rate contracts (b) | 2 | 3,729 | 12 | - | - | 3,743 | |||||||||||
Foreign exchange contracts(b) | - | 839 | 1 | - | - | 840 | |||||||||||
Equity contracts | 98 | 58 | 51 | - | - | 207 | |||||||||||
Commodity contracts | - | - | - | - | - | - | |||||||||||
Credit contracts | - | - | 4 | - | - | 4 | |||||||||||
Other contracts | - | - | 31 | - | - | 31 | |||||||||||
Counterparty netting and cash collateral | - | - | - | -2,102 | -1,119 | -3,221 | |||||||||||
Total derivative assets | 100 | 4,626 | 99 | -2,102 | -1,119 | 1,604 | |||||||||||
Short-term investments | 584 | 1,100 | - | - | - | 1,684 | |||||||||||
Separate account assets | 73,939 | 6,097 | - | - | - | 80,036 | |||||||||||
Other assets | - | - | - | - | - | - | |||||||||||
Total | $ | 81,232 | $ | 255,366 | $ | 44,362 | $ | -2,102 | $ | -1,119 | $ | 377,739 | |||||
Liabilities: | |||||||||||||||||
Policyholder contract deposits | $ | - | $ | 52 | $ | 1,509 | $ | - | $ | - | $ | 1,561 | |||||
Other policyholder funds | - | 8 | - | - | - | 8 | |||||||||||
Derivative liabilities: | |||||||||||||||||
Interest rate contracts | - | 3,047 | 86 | - | - | 3,133 | |||||||||||
Foreign exchange contracts | - | 1,482 | 9 | - | - | 1,491 | |||||||||||
Equity contracts | - | 98 | 4 | - | - | 102 | |||||||||||
Commodity contracts | - | 6 | - | - | - | 6 | |||||||||||
Credit contracts | - | - | 982 | - | - | 982 | |||||||||||
Other contracts | - | - | 90 | - | - | 90 | |||||||||||
Counterparty netting and cash collateral | - | - | - | -2,102 | -1,429 | -3,531 | |||||||||||
Total derivative liabilities | - | 4,633 | 1,171 | -2,102 | -1,429 | 2,273 | |||||||||||
Long-term debt | - | 5,253 | 213 | - | - | 5,466 | |||||||||||
Other liabilities | 34 | 316 | - | - | - | 350 | |||||||||||
Total | $ | 34 | $ | 10,262 | $ | 2,893 | $ | -2,102 | $ | -1,429 | $ | 9,658 | |||||
31-Dec-13 | 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 | $ | 133 | $ | 3,062 | $ | - | $ | - | $ | - | $ | 3,195 | |||||
Obligations of states, municipalities and political subdivisions | - | 28,300 | 1,080 | - | - | 29,380 | |||||||||||
Non-U.S. governments | 508 | 21,985 | 16 | - | - | 22,509 | |||||||||||
Corporate debt | - | 143,297 | 1,255 | - | - | 144,552 | |||||||||||
RMBS | - | 21,207 | 14,941 | - | - | 36,148 | |||||||||||
CMBS | - | 5,747 | 5,735 | - | - | 11,482 | |||||||||||
CDO/ABS | - | 4,034 | 6,974 | - | - | 11,008 | |||||||||||
Total bonds available for sale | 641 | 227,632 | 30,001 | - | - | 258,274 | |||||||||||
Other bond securities: | |||||||||||||||||
U.S. government and government sponsored entities | 78 | 5,645 | - | - | - | 5,723 | |||||||||||
Obligations of states, municipalities and political subdivisions | - | 121 | - | - | - | 121 | |||||||||||
Non-U.S. governments | - | 2 | - | - | - | 2 | |||||||||||
Corporate debt | - | 1,169 | - | - | - | 1,169 | |||||||||||
RMBS | - | 1,326 | 937 | - | - | 2,263 | |||||||||||
CMBS | - | 509 | 844 | - | - | 1,353 | |||||||||||
CDO/ABS | - | 3,158 | 8,834 | - | - | 11,992 | |||||||||||
Total other bond securities | 78 | 11,930 | 10,615 | - | - | 22,623 | |||||||||||
Equity securities available for sale: | |||||||||||||||||
Common stock | 3,218 | - | 1 | - | - | 3,219 | |||||||||||
Preferred stock | - | 27 | - | - | - | 27 | |||||||||||
Mutual funds | 408 | 2 | - | - | - | 410 | |||||||||||
Total equity securities available for sale | 3,626 | 29 | 1 | - | - | 3,656 | |||||||||||
Other equity securities | 750 | 84 | - | - | - | 834 | |||||||||||
Mortgage and other loans receivable | - | - | - | - | - | - | |||||||||||
Other invested assets | 1 | 2,667 | 5,930 | - | - | 8,598 | |||||||||||
Derivative assets: | |||||||||||||||||
Interest rate contracts | 14 | 3,716 | 41 | - | - | 3,771 | |||||||||||
Foreign exchange contracts | - | 52 | - | - | - | 52 | |||||||||||
Equity contracts | 151 | 106 | 49 | - | - | 306 | |||||||||||
Commodity contracts | - | - | 1 | - | - | 1 | |||||||||||
Credit contracts | - | - | 55 | - | - | 55 | |||||||||||
Other contracts | - | 1 | 33 | - | - | 34 | |||||||||||
Counterparty netting and cash collateral | - | - | - | -1,734 | -820 | -2,554 | |||||||||||
Total derivative assets | 165 | 3,875 | 179 | -1,734 | -820 | 1,665 | |||||||||||
Short-term investments | 332 | 5,981 | - | - | - | 6,313 | |||||||||||
Separate account assets | 67,708 | 3,351 | - | - | - | 71,059 | |||||||||||
Other assets | - | 418 | - | - | - | 418 | |||||||||||
Total | $ | 73,301 | $ | 255,967 | $ | 46,726 | $ | -1,734 | $ | -820 | $ | 373,440 | |||||
Liabilities: | |||||||||||||||||
Policyholder contract deposits | $ | - | $ | 72 | $ | 312 | $ | - | $ | - | $ | 384 | |||||
Derivative liabilities: | |||||||||||||||||
Interest rate contracts | - | 3,661 | 141 | - | - | 3,802 | |||||||||||
Foreign exchange contracts | - | 319 | - | - | - | 319 | |||||||||||
Equity contracts | - | 101 | - | - | - | 101 | |||||||||||
Commodity contracts | - | 5 | - | - | - | 5 | |||||||||||
Credit contracts | - | - | 1,335 | - | - | 1,335 | |||||||||||
Other contracts | - | 25 | 142 | - | - | 167 | |||||||||||
Counterparty netting and cash collateral | - | - | - | -1,734 | -1,484 | -3,218 | |||||||||||
Total derivative liabilities | - | 4,111 | 1,618 | -1,734 | -1,484 | 2,511 | |||||||||||
Long-term debt | - | 6,377 | 370 | - | - | 6,747 | |||||||||||
Other liabilities | 42 | 891 | - | - | - | 933 | |||||||||||
Total | $ | 42 | $ | 11,451 | $ | 2,300 | $ | -1,734 | $ | -1,484 | $ | 10,575 | |||||
(a) Represents netting of derivative exposures covered by qualifying master netting agreements. | |||||||||||||||||
(b) Effective April 1, 2014, we reclassified cross-currency swaps from Interest Rate contracts to Foreign exchange contracts. This change was applied prospectively. | |||||||||||||||||
Transfers of Level 1 and Level 2 Assets and Liabilities | |||||||||||||||||
Our policy is to record transfers of assets and liabilities between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. During the years ended December 31, 2014 and 2013, we transferred $590 million and $944 million, respectively, of securities issued by Non-U.S. government entities from Level 1 to Level 2, because they are no longer considered actively traded. For similar reasons, during the years ended December 31, 2014 and 2013, we transferred $107 million and $356 million, respectively, of securities issued by the U.S. government and government-sponsored entities from Level 1 to Level 2. There were no material transfers from Level 2 to Level 1 during the years ended December 31, 2014 and 2013. | |||||||||||||||||
Changes in Level 3 Recurring Fair Value Measurements | |||||||||||||||||
The following tables present changes during the years ended December 31, 2014 and 2013 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Consolidated Balance Sheets at December 31, 2014 and 2013: | |||||||||||||||||
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 | Issues and | Transfers | Transfers | End | Instruments Held | ||||||||||
(in millions) | of Year | in Income | Income (Loss) | Settlements, Net | In | Out | of Year | at End of Year | |||||||||
31-Dec-14 | |||||||||||||||||
Assets: | |||||||||||||||||
Bonds available for sale: | |||||||||||||||||
Obligations of states, municipalities | |||||||||||||||||
and political subdivisions | $ | 1,080 | $ | - | $ | 233 | $ | 914 | $ | 119 | $ | -187 | $ | 2,159 | $ | - | |
Non-U.S. governments | 16 | 1 | -1 | 9 | 8 | -3 | 30 | - | |||||||||
Corporate debt | 1,255 | 12 | 19 | -257 | 1,363 | -509 | 1,883 | - | |||||||||
RMBS | 14,941 | 1,012 | 53 | 796 | 120 | -117 | 16,805 | - | |||||||||
CMBS | 5,735 | 69 | 243 | 85 | 83 | -3,519 | 2,696 | - | |||||||||
CDO/ABS | 6,974 | 86 | -38 | 1,545 | 2,488 | -4,945 | 6,110 | - | |||||||||
Total bonds available for sale | 30,001 | 1,180 | 509 | 3,092 | 4,181 | -9,280 | 29,683 | - | |||||||||
Other bond securities: | |||||||||||||||||
RMBS | 937 | 40 | - | 97 | 51 | -20 | 1,105 | -13 | |||||||||
CMBS | 844 | -6 | - | -141 | 124 | -452 | 369 | -7 | |||||||||
CDO/ABS | 8,834 | 1,098 | - | -1,805 | 271 | -949 | 7,449 | 318 | |||||||||
Total other bond securities | 10,615 | 1,132 | - | -1,849 | 446 | -1,421 | 8,923 | 298 | |||||||||
Equity securities available for sale: | |||||||||||||||||
Common stock | 1 | - | - | -1 | 2 | -1 | 1 | - | |||||||||
Preferred stock | - | - | - | - | - | - | - | - | |||||||||
Mutual funds | - | - | - | - | 1 | -1 | - | - | |||||||||
Total equity securities available for sale | 1 | - | - | -1 | 3 | -2 | 1 | - | |||||||||
Mortgage and other loans receivable | - | - | - | 6 | - | - | 6 | - | |||||||||
Other invested assets | 5,930 | 150 | 398 | -83 | 167 | -912 | 5,650 | - | |||||||||
Total | $ | 46,547 | $ | 2,462 | $ | 907 | $ | 1,165 | $ | 4,797 | $ | -11,615 | $ | 44,263 | $ | 298 | |
Liabilities: | |||||||||||||||||
Policyholder contract deposits | $ | -312 | $ | -1,127 | $ | -54 | $ | -16 | $ | - | $ | - | $ | -1,509 | $ | -218 | |
Derivative liabilities, net: | |||||||||||||||||
Interest rate contracts | -100 | -10 | - | 39 | - | -3 | -74 | -10 | |||||||||
Foreign exchange contracts | - | 2 | - | -10 | - | - | -8 | 3 | |||||||||
Equity contracts | 49 | 21 | - | -18 | 48 | -53 | 47 | 13 | |||||||||
Commodity contracts | 1 | -1 | - | - | - | - | - | -1 | |||||||||
Credit contracts | -1,280 | 263 | - | 39 | - | - | -978 | 268 | |||||||||
Other contracts | -109 | 99 | 53 | -103 | 1 | - | -59 | 82 | |||||||||
Total derivative liabilities, net* | -1,439 | 374 | 53 | -53 | 49 | -56 | -1,072 | 355 | |||||||||
Long-term debt | -370 | 94 | - | 37 | -70 | 96 | -213 | 15 | |||||||||
Total | $ | -2,121 | $ | -659 | $ | -1 | $ | -32 | $ | -21 | $ | 40 | $ | -2,794 | $ | 152 | |
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 | Issues and | Transfers | Transfers | End | Instruments Held | ||||||||||
(in millions) | of Year | in Income | Income (Loss) | Settlements, Net | In | Out | of Year | at End of Year | |||||||||
31-Dec-13 | |||||||||||||||||
Assets: | |||||||||||||||||
Bonds available for sale: | |||||||||||||||||
Obligations of states, municipalities | |||||||||||||||||
and political subdivisions | $ | 1,024 | $ | 29 | $ | -175 | $ | 403 | $ | - | $ | -201 | $ | 1,080 | $ | - | |
Non-U.S. governments | 14 | - | -1 | 3 | 1 | -1 | 16 | - | |||||||||
Corporate debt | 1,487 | 8 | -19 | -176 | 450 | -495 | 1,255 | - | |||||||||
RMBS | 11,662 | 867 | 466 | 1,818 | 186 | -58 | 14,941 | - | |||||||||
CMBS | 5,124 | 24 | 100 | 375 | 161 | -49 | 5,735 | - | |||||||||
CDO/ABS | 4,841 | 161 | 9 | 1,946 | 901 | -884 | 6,974 | - | |||||||||
Total bonds available for sale | 24,152 | 1,089 | 380 | 4,369 | 1,699 | -1,688 | 30,001 | - | |||||||||
Other bond securities: | |||||||||||||||||
Corporate debt | - | - | - | - | - | - | - | - | |||||||||
RMBS | 396 | 66 | - | 208 | 267 | - | 937 | -2 | |||||||||
CMBS | 812 | 67 | - | -200 | 279 | -114 | 844 | 29 | |||||||||
CDO/ABS | 8,536 | 1,527 | - | -2,044 | 843 | -28 | 8,834 | 681 | |||||||||
Total other bond securities | 9,744 | 1,660 | - | -2,036 | 1,389 | -142 | 10,615 | 708 | |||||||||
Equity securities available for sale: | |||||||||||||||||
Common stock | 24 | 7 | -8 | -22 | - | - | 1 | - | |||||||||
Preferred stock | 44 | - | 3 | -47 | - | - | - | - | |||||||||
Total equity securities available for sale | 68 | 7 | -5 | -69 | - | - | 1 | - | |||||||||
Mortgage and other loans receivable | - | - | - | - | - | - | - | - | |||||||||
Other invested assets | 5,389 | 208 | 237 | 64 | 344 | -312 | 5,930 | - | |||||||||
Total | $ | 39,353 | $ | 2,964 | $ | 612 | $ | 2,328 | $ | 3,432 | $ | -2,142 | $ | 46,547 | $ | 708 | |
Liabilities: | |||||||||||||||||
Policyholder contract deposits | $ | -1,257 | $ | 744 | $ | -1 | $ | 202 | $ | - | $ | - | $ | -312 | $ | 104 | |
Derivative liabilities, net: | |||||||||||||||||
Interest rate contracts | 732 | 19 | - | -851 | - | - | -100 | 35 | |||||||||
Foreign exchange contracts | - | - | - | - | - | - | - | - | |||||||||
Equity contracts | 47 | 74 | - | -20 | 1 | -53 | 49 | 30 | |||||||||
Commodity contracts | 1 | - | - | - | - | - | 1 | -1 | |||||||||
Credit contracts | -1,991 | 567 | - | 144 | - | - | -1,280 | 711 | |||||||||
Other contracts | -162 | 42 | 15 | -2 | -2 | - | -109 | 7 | |||||||||
Total derivatives liabilities, net* | -1,373 | 702 | 15 | -729 | -1 | -53 | -1,439 | 782 | |||||||||
Long-term debt | -344 | -137 | - | 38 | -2 | 75 | -370 | -30 | |||||||||
Total | $ | -2,974 | $ | 1,309 | $ | 14 | $ | -489 | $ | -3 | $ | 22 | $ | -2,121 | $ | 856 | |
* Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. | |||||||||||||||||
Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities shown above are reported in the Consolidated Statements of Income as follows: | |||||||||||||||||
The following table presents the gross components of purchases, sales, issues and settlements, net, shown above: | |||||||||||||||||
Purchases, | |||||||||||||||||
Sales, Issues and | |||||||||||||||||
(in millions) | Purchases | Sales | Settlements | Settlements, Net(a) | |||||||||||||
31-Dec-14 | |||||||||||||||||
Assets: | |||||||||||||||||
Bonds available for sale: | |||||||||||||||||
Obligations of states, municipalities and political subdivisions | $ | 1,041 | $ | -35 | $ | -92 | $ | 914 | |||||||||
Non-U.S. governments | 12 | - | -3 | 9 | |||||||||||||
Corporate debt | 148 | -8 | -397 | -257 | |||||||||||||
RMBS | 3,301 | -124 | -2,381 | 796 | |||||||||||||
CMBS | 368 | -224 | -59 | 85 | |||||||||||||
CDO/ABS | 2,760 | -70 | -1,145 | 1,545 | |||||||||||||
Total bonds available for sale | 7,630 | -461 | -4,077 | 3,092 | |||||||||||||
Other bond securities: | |||||||||||||||||
RMBS | 211 | -31 | -83 | 97 | |||||||||||||
CMBS | - | -16 | -125 | -141 | |||||||||||||
CDO/ABS | 55 | -21 | -1,839 | -1,805 | |||||||||||||
Total other bond securities | 266 | -68 | -2,047 | -1,849 | |||||||||||||
Equity securities available for sale | - | - | -1 | -1 | |||||||||||||
Mortgage and other loans receivable | 6 | - | - | 6 | |||||||||||||
Other invested assets | 776 | -25 | -834 | -83 | |||||||||||||
Total assets | $ | 8,678 | $ | -554 | $ | -6,959 | $ | 1,165 | |||||||||
Liabilities: | |||||||||||||||||
Policyholder contract deposits | $ | - | $ | -149 | $ | 133 | $ | -16 | |||||||||
Derivative liabilities, net | 2 | -3 | -52 | -53 | |||||||||||||
Long-term debt(b) | - | - | 37 | 37 | |||||||||||||
Total liabilities | $ | 2 | $ | -152 | $ | 118 | $ | -32 | |||||||||
31-Dec-13 | |||||||||||||||||
Assets: | |||||||||||||||||
Bonds available for sale: | |||||||||||||||||
Obligations of states, municipalities and political subdivisions | $ | 541 | $ | -138 | $ | - | $ | 403 | |||||||||
Non-U.S. governments | 9 | - | -6 | 3 | |||||||||||||
Corporate debt | 487 | -114 | -549 | -176 | |||||||||||||
RMBS | 4,424 | -266 | -2,340 | 1,818 | |||||||||||||
CMBS | 1,023 | -188 | -460 | 375 | |||||||||||||
CDO/ABS | 2,662 | -159 | -557 | 1,946 | |||||||||||||
Total bonds available for sale | 9,146 | -865 | -3,912 | 4,369 | |||||||||||||
Other bond securities: | |||||||||||||||||
Corporate debt | - | - | - | - | |||||||||||||
RMBS | 350 | -12 | -130 | 208 | |||||||||||||
CMBS | 24 | -71 | -153 | -200 | |||||||||||||
CDO/ABS | 353 | -72 | -2,325 | -2,044 | |||||||||||||
Total other bond securities | 727 | -155 | -2,608 | -2,036 | |||||||||||||
Equity securities available for sale | 58 | -12 | -115 | -69 | |||||||||||||
Other invested assets | 882 | -9 | -809 | 64 | |||||||||||||
Total assets | $ | 10,813 | $ | -1,041 | $ | -7,444 | $ | 2,328 | |||||||||
Liabilities: | |||||||||||||||||
Policyholder contract deposits | $ | - | $ | -26 | $ | 228 | $ | 202 | |||||||||
Derivative liabilities, net | 10 | -1 | -738 | -729 | |||||||||||||
Long-term debt(b) | - | - | 38 | 38 | |||||||||||||
Total liabilities | $ | 10 | $ | -27 | $ | -472 | $ | -489 | |||||||||
(a) There were no issuances during the years ended December 31, 2014 and 2013. | |||||||||||||||||
(b) Includes GIAs, notes, bonds, loans and mortgages payable. | |||||||||||||||||
Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at December 31, 2014 and 2013 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. | |||||||||||||||||
Transfers of Level 3 Assets and Liabilities | |||||||||||||||||
We record transfers of assets and liabilities into or out of Level 3 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. As a result, the Net realized and unrealized gains (losses) included in income or other comprehensive income and as shown in the table above excludes $22 million of net gains and $15 million of net losses related to assets and liabilities transferred into Level 3 during 2014 and 2013, respectively, and includes $62 million and $44 million of net gains related to assets and liabilities transferred out of Level 3 during 2014 and 2013, respectively. | |||||||||||||||||
Transfers of Level 3 Assets | |||||||||||||||||
During the years ended December 31, 2014 and 2013, transfers into Level 3 assets primarily included certain investments in private placement corporate debt, RMBS, CMBS, CDO/ABS, and investments in hedge funds. Transfers of private placement corporate debt and certain ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity. The transfers of investments in RMBS, CMBS and CDO and certain ABS into Level 3 assets were due to decreases in market transparency and liquidity for individual security types. Certain investments in hedge funds were transferred into Level 3 due to these investments now being carried at fair value and no longer being accounted for using the equity method of accounting due to a change in percentage ownership, or as a result of limited market activity due to fund-imposed redemption restrictions. | |||||||||||||||||
During the years ended December 31, 2014 and 2013, transfers out of Level 3 assets primarily included CMBS, CDO/ABS, RMBS, certain investments in municipal securities, private placement and other corporate debt, and investments in hedge funds. Transfers of certain investments in municipal securities, corporate debt, RMBS, CMBS and CDO/ABS out of Level 3 assets were based on consideration of market liquidity as well as related transparency of pricing and associated observable inputs for these investments. Transfers of certain investments in private placement corporate debt and certain ABS out of Level 3 assets were primarily the result of using observable pricing information that reflects the fair value of those securities without the need for adjustment based on our own assumptions regarding the characteristics of a specific security or the current liquidity in the market. The transfers of certain hedge fund investments out of Level 3 assets were primarily the result of easing of certain fund-imposed redemption restrictions. | |||||||||||||||||
Transfers of Level 3 Liabilities | |||||||||||||||||
There were no significant transfers of derivative or other liabilities into or out of Level 3 for the years ended December 31, 2014 and 2013. | |||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||
The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and includes only those instruments for which information about the inputs is reasonably available to us, such as data from independent third-party valuation service providers and from internal valuation models. Because input information from third-parties with respect to certain Level 3 instruments (primarily CDO/ABS) may not be reasonably available to us, balances shown below may not equal total amounts reported for such Level 3 assets and liabilities: | |||||||||||||||||
Fair Value at | |||||||||||||||||
December 31, | Valuation | Range | |||||||||||||||
(in millions) | 2014 | Technique | Unobservable Input(a) | (Weighted Average )(a) | |||||||||||||
Assets: | |||||||||||||||||
Obligations of states, | $ | 1,178 | Discounted cash flow | Yield(b) | 3.9% - 4.62% (4.26%) | ||||||||||||
municipalities and | |||||||||||||||||
political subdivisions | |||||||||||||||||
Corporate debt | 1,145 | Discounted cash flow | Yield(b) | 3.46% - 8.75% (6.10%) | |||||||||||||
RMBS | 17,353 | Discounted cash flow | Constant prepayment rate(c) | 0.59% - 9.35% (4.97%) | |||||||||||||
Loss severity(c) | 46.04% - 79.56% (62.80%) | ||||||||||||||||
Constant default rate(c) | 3.67% - 9.96% (6.82%) | ||||||||||||||||
Yield(c) | 2.67% - 6.64% (4.65%) | ||||||||||||||||
Certain CDO/ABS | 5,282 | Discounted cash flow | Constant prepayment rate(c) | 6.40% - 12.80% (9.20%) | |||||||||||||
Loss severity(c) | 42.90% - 60.30% (51.90%) | ||||||||||||||||
Constant default rate(c) | 2.50% - 14.70% (7.80%) | ||||||||||||||||
Yield(c) | 4.70% - 9.70% (7.10%) | ||||||||||||||||
CMBS | 2,687 | Discounted cash flow | Yield(b) | 0.00% - 17.29% (6.06%) | |||||||||||||
CDO/ABS - Direct | Binomial Expansion | Recovery rate(b) | 7.00% - 36.00% (21.00%) | ||||||||||||||
Investment Book | 279 | Technique (BET) | Diversity score(b) | 5 - 27 (12) | |||||||||||||
Weighted average life(b) | 0.25 - 10.49 years (3.93 years) | ||||||||||||||||
Liabilities: | |||||||||||||||||
Policyholder contract | |||||||||||||||||
deposits | 1,509 | Discounted cash flow | Equity implied volatility(b) | 6.00% - 39.00% | |||||||||||||
Base lapse rate(b) | 1.00% - 40.00% | ||||||||||||||||
Dynamic lapse rate(b) | 0.20% - 60.00% | ||||||||||||||||
Mortality rate(b) | 0.10% - 35.00% | ||||||||||||||||
Utilization rate(b) | 0.50% - 30.00% | ||||||||||||||||
Total derivative | |||||||||||||||||
liabilities, net | 791 | BET | Recovery rate(b) | 5.00% - 23.00% (13.00%) | |||||||||||||
Diversity score(b) | 8 - 25 (13) | ||||||||||||||||
Weighted average life(b) | 2.67 - 10.49 years (4.65 years) | ||||||||||||||||
Fair Value at | |||||||||||||||||
December 31, | Valuation | Range | |||||||||||||||
(in millions) | 2013 | Technique | Unobservable Input(a) | (Weighted Average )(a) | |||||||||||||
Assets: | |||||||||||||||||
Obligations of states, | $ | 920 | Discounted cash flow | Yield(b) | 4.94% - 5.86% (5.40%) | ||||||||||||
municipalities and | |||||||||||||||||
political subdivisions | |||||||||||||||||
Corporate debt | 788 | Discounted cash flow | Yield(b) | 0.00% - 14.29% (6.64%) | |||||||||||||
RMBS | 14,419 | Discounted cash flow | Constant prepayment rate(c) | 0.00% - 10.35% (4.97%) | |||||||||||||
Loss severity(c) | 42.60% - 79.07% (60.84%) | ||||||||||||||||
Constant default rate(c) | 3.98% - 12.22% (8.10%) | ||||||||||||||||
Yield(c) | 2.54% - 7.40% (4.97%) | ||||||||||||||||
Certain CDO/ABS(d) | 5,414 | Discounted cash flow | Constant prepayment rate(c) | 5.20% - 10.80% (8.20%) | |||||||||||||
Loss severity(c) | 48.60% - 63.40% (56.40%) | ||||||||||||||||
Constant default rate(c) | 3.20% - 16.20% (9.00%) | ||||||||||||||||
Yield(c) | 5.20% - 11.50% (9.40%) | ||||||||||||||||
CMBS | 5,847 | Discounted cash flow | Yield(b) | 0.00% - 14.69% (5.58%) | |||||||||||||
CDO/ABS - Direct | Binomial Expansion | Recovery rate(b) | 6.00% - 63.00% (25.00%) | ||||||||||||||
Investment Book | 557 | Technique (BET) | Diversity score(b) | 5 - 35 (12) | |||||||||||||
Weighted average life(b) | 1.07 - 9.47 years (4.86 years) | ||||||||||||||||
Liabilities: | |||||||||||||||||
Policyholder contract | |||||||||||||||||
deposits | 312 | Discounted cash flow | Equity implied volatility(b) | 6.00% - 39.00% | |||||||||||||
Base lapse rate(b) | 1.00% - 40.00% | ||||||||||||||||
Dynamic lapse rate(b) | 0.20% - 60.00% | ||||||||||||||||
Mortality rate(b) | 0.50% - 40.00% | ||||||||||||||||
Utilization rate(b) | 0.50% - 25.00% | ||||||||||||||||
Total derivative | |||||||||||||||||
liabilities, net | 996 | BET | Recovery rate(b) | 5.00% - 34.00% (17.00%) | |||||||||||||
Diversity score(b) | 9 - 32 (13) | ||||||||||||||||
Weighted average life(b) | 4.50 - 9.47 years (5.63 years) | ||||||||||||||||
(a) The unobservable inputs and ranges for the 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) Information received from third-party valuation service providers. | |||||||||||||||||
The ranges of reported inputs for Corporate debt, RMBS, CDO/ABS, and CMBS valued using a discounted cash flow technique consist of plus/minus one standard deviation in either direction from the value-weighted average. The preceding table does not give effect to our risk management practices that might offset risks inherent in these investments. | |||||||||||||||||
Sensitivity to Changes in Unobservable Inputs | |||||||||||||||||
We consider unobservable inputs to be those for which market data is not available and that are developed using the best information available to us about the assumptions that market participants would use when pricing the asset or liability. Relevant inputs vary depending on the nature of the instrument being measured at fair value. The following is a general description of sensitivities of significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. The effect of a change in a particular assumption in the sensitivity analysis below is considered independently of changes in any other assumptions. In practice, simultaneous changes in assumptions may not always have a linear effect on the inputs discussed below. Interrelationships may also exist between observable and unobservable inputs. Such relationships have not been included in the discussion below. For each of the individual relationships described below, the inverse relationship would also generally apply. | |||||||||||||||||
Corporate Debt | |||||||||||||||||
Corporate debt securities included in Level 3 are primarily private placement issuances that are not traded in active markets or that are subject to transfer restrictions. Fair value measurements consider illiquidity and non-transferability. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on credit spreads, yields or price levels of publicly-traded debt of the issuer or other comparable securities, considering illiquidity and structure. The significant unobservable input used in the fair value measurement of corporate debt is the yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. In addition, the migration in credit quality of a given security generally has a corresponding effect on the fair value measurement of the security. For example, a downward migration of credit quality would increase spreads. Holding U.S. Treasury rates constant, an increase in corporate credit spreads would decrease the fair value of corporate debt. | |||||||||||||||||
RMBS and Certain CDO/ABS | |||||||||||||||||
The significant unobservable inputs used in fair value measurements of RMBS and certain CDO/ABS valued by third-party valuation service providers are constant prepayment rates (CPR), loss severity, constant default rates (CDR), and yield. A change in the assumptions used for the probability of default will generally be accompanied by a corresponding change in the assumption used for the loss severity and an inverse change in the assumption used for prepayment rates. In general, increases in CPR, loss severity, CDR, and yield, in isolation, would result in a decrease in the fair value measurement. Changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship between the directional change of each input is not usually linear. | |||||||||||||||||
CMBS | |||||||||||||||||
The significant unobservable input used in fair value measurements for CMBS is the yield. Prepayment assumptions for each mortgage pool are factored into the yield. CMBS generally feature a lower degree of prepayment risk than RMBS because commercial mortgages generally contain a penalty for prepayment. In general, increases in the yield would decrease the fair value of CMBS. | |||||||||||||||||
CDO/ABS – Direct Investment book | |||||||||||||||||
The significant unobservable inputs used for certain CDO/ABS securities valued using the BET are recovery rates, diversity score, and the weighted average life of the portfolio. An increase in recovery rates and diversity score will increase the fair value of the portfolio. An increase in the weighted average life will decrease the fair value. | |||||||||||||||||
Policyholder contract deposits | |||||||||||||||||
Embedded derivatives within Policyholder contract deposits relate to guaranteed minimum withdrawal benefits (GMWB) within variable annuity products and certain enhancements to interest crediting rates based on market indices within index annuities and guaranteed investment contracts (GICs). GMWB represents our largest exposure of these embedded derivatives, although the carrying amount of the liability fluctuates based on the performance of the equity markets and therefore, at a point in time, can be low relative to the exposure. The principal unobservable input used for GMWBs and embedded derivatives in index annuities measured at fair value is equity implied volatility. For GMWBs, other significant unobservable inputs include base and dynamic lapse rates, mortality rates, and utilization rates. Lapse, mortality, and utilization rates may vary significantly depending upon age groups and duration. In general, increases in volatility and utilization rates will increase the fair value of the liability associated with GMWB, while increases in lapse rates and mortality rates will decrease the fair value of the liability. Significant unobservable inputs used in valuing embedded derivatives within GICs include long-term forward interest rates and foreign exchange rates. Generally, the embedded derivative liability for GICs will increase as interest rates decrease or if the U.S. dollar weakens compared to the euro. | |||||||||||||||||
Derivative liabilities – credit contracts | |||||||||||||||||
The significant unobservable inputs used for Derivatives liabilities – credit contracts are recovery rates, diversity scores, and the weighted average life of the portfolio. AIG non-performance risk is also considered in the measurement of the liability. | |||||||||||||||||
An increase in recovery rates and diversity score will decrease the fair value of the liability. An increase in the weighted average life will increase the fair value measurement of the liability. | |||||||||||||||||
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share | |||||||||||||||||
The following table includes information related to our investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate net asset value per share (or its equivalent). For these investments, which are measured at fair value on a recurring basis, we use the net asset value per share as a practical expedient to measure fair value. | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Fair Value Using Net Asset Value Per Share (or its equivalent) | Fair Value Using Net Asset Value Per Share (or its equivalent) | ||||||||||||||||
Unfunded | Unfunded | ||||||||||||||||
(in millions) | Investment Category Includes | Commitments | 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 | $ | 2,275 | $ | 450 | $ | 2,544 | $ | 578 | ||||||||
Real Estate / Infrastructure | Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities | 384 | 227 | 346 | 86 | ||||||||||||
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 | 121 | 26 | 140 | 13 | ||||||||||||
Distressed | Securities of companies that are in default, under bankruptcy protection, or troubled | 164 | 43 | 183 | 34 | ||||||||||||
Other | Includes multi-strategy, mezzanine, and other strategies | 216 | 234 | 134 | 238 | ||||||||||||
Total private equity funds | 3,160 | 980 | 3,347 | 949 | |||||||||||||
Hedge funds: | |||||||||||||||||
Event-driven | Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations | 1,109 | - | 976 | 2 | ||||||||||||
Long-short | Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk | 2,428 | 1 | 1,759 | 11 | ||||||||||||
Macro | Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions | 498 | - | 612 | - | ||||||||||||
Distressed | Securities of companies that are in default, under bankruptcy protection or troubled | 731 | 5 | 594 | 15 | ||||||||||||
Emerging markets | Investments in the financial markets of developing countries | 308 | - | 287 | - | ||||||||||||
Other | Includes multi-strategy, relative value, and other strategies | 125 | - | 157 | - | ||||||||||||
Total hedge funds | 5,199 | 6 | 4,385 | 28 | |||||||||||||
Total | $ | 8,359 | $ | 986 | $ | 7,732 | $ | 977 | |||||||||
Private equity fund investments included above are not redeemable, as distributions from the funds will be received when underlying investments of the funds are liquidated. Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one or two-year increments. At December 31, 2014, assuming average original expected lives of 10 years for the funds, 72 percent of the total fair value using net asset value per share (or its equivalent) presented above would have expected remaining lives of three years or less, 18 percent between four and six years and 10 percent between seven and 10 years. | |||||||||||||||||
The hedge fund investments included above are generally redeemable monthly (14 percent), quarterly (49 percent), semi-annually (15 percent) and annually (22 percent), with redemption notices ranging from one day to 180 days. At December 31, 2014, however, investments representing approximately 43 percent of the total fair value of the hedge fund investments cannot be redeemed, either in whole or in part, because the investments include various contractual restrictions. The majority of these contractual restrictions, which may have been put in place at the fund’s inception or thereafter, have pre-defined end dates and are generally expected to be lifted by the end of 2015. The fund investments for which redemption is restricted only in part generally relate to certain hedge funds that hold at least one investment that the fund manager deems to be illiquid. | |||||||||||||||||
Fair Value Option | |||||||||||||||||
Under the fair value option, we may elect to measure at fair value financial assets and financial liabilities that are not otherwise required to be carried at fair value. Subsequent changes in fair value for designated items are reported in earnings. We elect the fair value option for certain hybrid securities given the complexity of bifurcating the economic components associated with the embedded derivatives. Refer to Note 11 for additional information related to embedded derivatives. | |||||||||||||||||
Additionally, beginning in the third quarter of 2012 we elected the fair value option for certain alternative investments when such investments are eligible for this election. We believe this measurement basis is consistent with the applicable accounting guidance used by the respective investment company funds themselves. Refer to Note 6 herein for additional information. | |||||||||||||||||
The following table presents the gains or losses recorded related to the eligible instruments for which we elected the fair value option: | |||||||||||||||||
Years Ended December 31, | Gain (Loss) | ||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||||
Assets: | |||||||||||||||||
Mortgage and other loans receivable | $ | - | $ | 3 | $ | 47 | |||||||||||
Bond and equity securities | 2,099 | 1,667 | 2,339 | ||||||||||||||
Other securities – ML II interest | - | - | 246 | ||||||||||||||
Other securities – ML III interest | - | - | 2,888 | ||||||||||||||
Retained interest in AIA | - | - | 2,069 | ||||||||||||||
Alternative investments(a) | 313 | 360 | 36 | ||||||||||||||
Other, including Short-term investments | 10 | 11 | 20 | ||||||||||||||
Liabilities: | |||||||||||||||||
Long-term debt(b) | -269 | 327 | -681 | ||||||||||||||
Other liabilities | -13 | -15 | -33 | ||||||||||||||
Total gain | $ | 2,140 | $ | 2,353 | $ | 6,931 | |||||||||||
(a) Includes certain hedge funds, private equity funds and other investment partnerships. | |||||||||||||||||
(b) Includes GIAs, notes, bonds and mortgages payable. | |||||||||||||||||
Interest income and dividend income on assets measured under the fair value option are recognized and included in Net investment income in the Consolidated Statements of Income with the exception of activity within AIG’s Corporate and Other category, which is included in Other income. Interest expense on liabilities measured under the fair value option is reported in Other Income in the Consolidated Statements of Income. See Note 6 herein for additional information about our policies for recognition, measurement, and disclosure of interest and dividend income and interest expense. | |||||||||||||||||
During 2014, 2013 and 2012, we recognized losses of $32 million, $54 million and $641 million, respectively, attributable to the observable effect of changes in credit spreads on our own liabilities for which the fair value option was elected. We calculate the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates, our observable credit spreads on these liabilities and other factors that mitigate the risk of nonperformance such as cash collateral posted. | |||||||||||||||||
The following table presents the difference between fair values and the aggregate contractual principal amounts of mortgage and other loans receivable and long-term borrowings for which the fair value option was elected: | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||
(in millions) | Fair Value | Principal Amount | Difference | Fair Value | Principal Amount | Difference | |||||||||||
Assets: | |||||||||||||||||
Mortgage and other loans receivable | $ | 6 | $ | 4 | $ | 2 | $ | - | $ | - | $ | - | |||||
Liabilities: | |||||||||||||||||
Long-term debt* | $ | 5,466 | $ | 4,101 | $ | 1,365 | $ | 6,747 | $ | 5,231 | $ | 1,516 | |||||
* Includes GIAs, notes, bonds, loans and mortgages payable. | |||||||||||||||||
There were no mortgage or other loans receivable for which the fair value option was elected that were 90 days or more past due or in non-accrual status at December 31, 2014 or 2013. | |||||||||||||||||
FAIR VALUE MEASUREMENTS ON A NON-RECURRING BASIS | |||||||||||||||||
We measure the fair value of certain assets on a non-recurring basis, generally quarterly, annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include cost and equity-method investments, investments in life settlements, collateral securing foreclosed loans and real estate and other fixed assets, goodwill and other intangible assets. See Note 6 herein for additional information about how we test various asset classes for impairment. | |||||||||||||||||
The following table presents assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented: | |||||||||||||||||
Assets at Fair Value | Impairment Charges | ||||||||||||||||
Non-Recurring Basis | December 31, | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | 2014 | 2013 | 2012 | ||||||||||
31-Dec-14 | |||||||||||||||||
Other investments | $ | - | $ | - | $ | 790 | $ | 790 | $ | 134 | $ | 112 | $ | 151 | |||
Investments in life settlements | - | - | 537 | 537 | 201 | 971 | 309 | ||||||||||
Other assets | - | - | 1 | 1 | 7 | 31 | 11 | ||||||||||
Total | $ | - | $ | - | $ | 1,328 | $ | 1,328 | $ | 342 | $ | 1,114 | $ | 471 | |||
31-Dec-13 | |||||||||||||||||
Other investments | $ | - | $ | - | $ | 1,615 | $ | 1,615 | |||||||||
Investments in life settlements | - | - | 896 | 896 | |||||||||||||
Other assets | - | 11 | 48 | 59 | |||||||||||||
Total | $ | - | $ | 11 | $ | 2,559 | $ | 2,570 | |||||||||
FAIR VALUE INFORMATION ABOUT FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE | |||||||||||||||||
Information regarding the estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts and lease contracts) is discussed below: | |||||||||||||||||
Mortgage and other loans receivable: Fair values of loans on real estate and other loans receivable are estimated for disclosure purposes using discounted cash flow calculations based on discount rates that we believe market participants would use in determining the price that they would pay for such assets. For certain loans, our current incremental lending rates for similar types of loans are used as the discount rates, because we believe this rate approximates the rates market participants would use. The fair values of policy loans are generally estimated based on unpaid principal amount as of each reporting date or, in some cases, based on the present value of the loans using a discounted cash flow model. No consideration is given to credit risk because policy loans are effectively collateralized by the cash surrender value of the policies. | |||||||||||||||||
Other invested assets: The majority of Other invested assets that are not measured at fair value represent investments in life settlements. The fair value of investments in life settlements is determined using a discounted cash flow methodology that incorporates the best available market assumptions for longevity as well as market yields based on reported transactions. Due to the individual life nature of each investment in life settlements and the illiquidity of the existing market, significant inputs to the fair value are unobservable. | |||||||||||||||||
Cash and short-term investments: The carrying amounts of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk. | |||||||||||||||||
Policyholder contract deposits associated with investment-type contracts: Fair values for policyholder contract deposits associated with investment-type contracts not accounted for at fair value are estimated using discounted cash flow calculations based on interest rates currently being offered for similar contracts with maturities consistent with those of the contracts being valued. When no similar contracts are being offered, the discount rate is the appropriate swap rate (if available) or current risk-free interest rate consistent with the currency in which the cash flows are denominated. To determine fair value, other factors include current policyholder account values and related surrender charges and other assumptions include expectations about policyholder behavior and an appropriate risk margin. | |||||||||||||||||
Other liabilities: The majority of Other liabilities that are financial instruments not measured at fair value represent secured financing arrangements, including repurchase agreements. The carrying amounts of these liabilities approximate fair value, because the financing arrangements are short-term and are secured by cash or other liquid collateral. | |||||||||||||||||
Long-term debt: Fair values of these obligations were determined by reference to quoted market prices, when available and appropriate, or discounted cash flow calculations based upon our current market-observable implicit-credit-spread rates for similar types of borrowings with maturities consistent with those remaining for the debt being valued. | |||||||||||||||||
The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: | |||||||||||||||||
Estimated Fair Value | Carrying | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Value | ||||||||||||
31-Dec-14 | |||||||||||||||||
Assets: | |||||||||||||||||
Mortgage and other loans receivable | $ | - | $ | 449 | $ | 26,157 | $ | 26,606 | $ | 24,984 | |||||||
Other invested assets | - | 593 | 2,882 | 3,475 | 4,352 | ||||||||||||
Short-term investments | - | 9,559 | - | 9,559 | 9,559 | ||||||||||||
Cash | 1,758 | - | - | 1,758 | 1,758 | ||||||||||||
Liabilities: | |||||||||||||||||
Policyholder contract deposits associated | |||||||||||||||||
with investment-type contracts | - | 244 | 119,268 | 119,512 | 106,395 | ||||||||||||
Other liabilities | - | 1,120 | - | 1,120 | 1,120 | ||||||||||||
Long-term debt | - | 24,749 | 2,932 | 27,681 | 25,751 | ||||||||||||
31-Dec-13 | |||||||||||||||||
Assets: | |||||||||||||||||
Mortgage and other loans receivable | $ | - | $ | 219 | $ | 21,418 | $ | 21,637 | $ | 20,765 | |||||||
Other invested assets | - | 529 | 2,705 | 3,234 | 4,194 | ||||||||||||
Short-term investments | - | 15,304 | - | 15,304 | 15,304 | ||||||||||||
Cash | 2,241 | - | - | 2,241 | 2,241 | ||||||||||||
Liabilities: | |||||||||||||||||
Policyholder contract deposits associated | |||||||||||||||||
with investment-type contracts | - | 199 | 114,361 | 114,560 | 105,093 | ||||||||||||
Other liabilities | - | 4,869 | 1 | 4,870 | 4,869 | ||||||||||||
Long-term debt | - | 36,239 | 2,394 | 38,633 | 34,946 | ||||||||||||
Net | Net Realized | ||||||||||||||||
Investment | Capital | Other | |||||||||||||||
(in millions) | Income | Gains (Losses) | Income | Total | |||||||||||||
31-Dec-14 | |||||||||||||||||
Bonds available for sale | $ | 1,236 | $ | -107 | $ | 51 | $ | 1,180 | |||||||||
Other bond securities | 95 | - | 1,037 | 1,132 | |||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||
Other invested assets | 175 | -28 | 3 | 150 | |||||||||||||
Policyholder contract deposits | - | -1,127 | - | -1,127 | |||||||||||||
Derivative liabilities, net | 68 | 8 | 298 | 374 | |||||||||||||
Long-term debt | - | - | 94 | 94 | |||||||||||||
31-Dec-13 | |||||||||||||||||
Bonds available for sale | $ | 997 | $ | -17 | $ | 109 | $ | 1,089 | |||||||||
Other bond securities | 187 | 9 | 1,464 | 1,660 | |||||||||||||
Equity securities available for sale | - | 7 | - | 7 | |||||||||||||
Other invested assets | 210 | -42 | 40 | 208 | |||||||||||||
Policyholder contract deposits | - | 744 | - | 744 | |||||||||||||
Derivative liabilities, net | 39 | 43 | 620 | 702 | |||||||||||||
Long-term debt | - | - | -137 | -137 |
INVESTMENTS
INVESTMENTS | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
INVESTMENTS | |||||||||||||||
INVESTMENTS | 6. INVESTMENTS | ||||||||||||||
Fixed Maturity and Equity Securities | |||||||||||||||
Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or are measured at fair value at our election. None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2014 or 2013. | |||||||||||||||
Fixed maturity and equity securities classified as available for sale are carried at fair value. Unrealized gains and losses from available for sale investments in fixed maturity and equity securities are reported as a separate component of Accumulated other comprehensive income, net of deferred policy acquisition costs and deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity and equity securities measured at fair value at our election are reflected in Net investment income (for insurance subsidiaries) or Other income (for Corporate and Other). Investments in fixed maturity and equity securities are recorded on a trade-date basis. | |||||||||||||||
Premiums and discounts arising from the purchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain RMBS, CMBS and CDO/ABS, (collectively, structured securities), recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that are not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For purchased credit impaired (PCI) securities, at acquisition, the difference between the undiscounted expected future cash flows and the recorded investment in the securities represents the initial accretable yield, which is to be accreted into net investment income over the securities’ remaining lives on a level-yield basis. Subsequently, effective yields recognized on PCI securities are recalculated and adjusted prospectively to reflect changes in the contractual benchmark interest rates on variable rate securities and any significant increases in undiscounted expected future cash flows arising due to reasons other than interest rate changes. | |||||||||||||||
Securities Available for Sale | |||||||||||||||
The following table presents the amortized cost or cost and fair value of our available for sale securities: | |||||||||||||||
Other-Than- | |||||||||||||||
Amortized | Gross | Gross | Temporary | ||||||||||||
Cost or | Unrealized | Unrealized | Fair | Impairments | |||||||||||
(in millions) | Cost | Gains | Losses | Value | in AOCI(a) | ||||||||||
31-Dec-14 | |||||||||||||||
Bonds available for sale: | |||||||||||||||
U.S. government and government sponsored entities | $ | 2,806 | $ | 204 | $ | -18 | $ | 2,992 | $ | - | |||||
Obligations of states, municipalities and political subdivisions | 25,979 | 1,729 | -49 | 27,659 | -13 | ||||||||||
Non-U.S. governments | 20,280 | 966 | -151 | 21,095 | - | ||||||||||
Corporate debt | 134,961 | 10,594 | -1,122 | 144,433 | 64 | ||||||||||
Mortgage-backed, asset-backed and collateralized: | |||||||||||||||
RMBS | 34,377 | 3,435 | -292 | 37,520 | 1,767 | ||||||||||
CMBS | 12,129 | 815 | -59 | 12,885 | 215 | ||||||||||
CDO/ABS | 12,775 | 628 | -128 | 13,275 | 47 | ||||||||||
Total mortgage-backed, asset-backed and collateralized | 59,281 | 4,878 | -479 | 63,680 | 2,029 | ||||||||||
Total bonds available for sale(b) | 243,307 | 18,371 | -1,819 | 259,859 | 2,080 | ||||||||||
Equity securities available for sale: | |||||||||||||||
Common stock | 1,185 | 2,461 | -17 | 3,629 | - | ||||||||||
Preferred stock | 21 | 4 | - | 25 | - | ||||||||||
Mutual funds | 724 | 54 | -37 | 741 | - | ||||||||||
Total equity securities available for sale | 1,930 | 2,519 | -54 | 4,395 | - | ||||||||||
Total | $ | 245,237 | $ | 20,890 | $ | -1,873 | $ | 264,254 | $ | 2,080 | |||||
31-Dec-13 | |||||||||||||||
Bonds available for sale: | |||||||||||||||
U.S. government and government sponsored entities | $ | 3,084 | $ | 150 | $ | -39 | $ | 3,195 | $ | - | |||||
Obligations of states, municipalities and political subdivisions | 28,704 | 1,122 | -446 | 29,380 | -15 | ||||||||||
Non-U.S. governments | 22,045 | 822 | -358 | 22,509 | - | ||||||||||
Corporate debt | 139,461 | 7,989 | -2,898 | 144,552 | 74 | ||||||||||
Mortgage-backed, asset-backed and collateralized: | |||||||||||||||
RMBS | 33,520 | 3,101 | -473 | 36,148 | 1,670 | ||||||||||
CMBS | 11,216 | 558 | -292 | 11,482 | 125 | ||||||||||
CDO/ABS | 10,501 | 649 | -142 | 11,008 | 62 | ||||||||||
Total mortgage-backed, asset-backed and collateralized | 55,237 | 4,308 | -907 | 58,638 | 1,857 | ||||||||||
Total bonds available for sale(b) | 248,531 | 14,391 | -4,648 | 258,274 | 1,916 | ||||||||||
Equity securities available for sale: | |||||||||||||||
Common stock | 1,280 | 1,953 | -14 | 3,219 | - | ||||||||||
Preferred stock | 24 | 4 | -1 | 27 | - | ||||||||||
Mutual funds | 422 | 12 | -24 | 410 | - | ||||||||||
Total equity securities available for sale | 1,726 | 1,969 | -39 | 3,656 | - | ||||||||||
Total | $ | 250,257 | $ | 16,360 | $ | -4,687 | $ | 261,930 | $ | 1,916 | |||||
(a) Represents the amount of other-than-temporary impairment losses recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date. | |||||||||||||||
(b) At December 31, 2014 and 2013, bonds available for sale held by us that were below investment grade or not rated totaled $35.1 billion and $32.6 billion, respectively. | |||||||||||||||
Securities Available for Sale in a Loss Position | |||||||||||||||
The following table summarizes the fair value and gross unrealized losses on our 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 | |||||||||
31-Dec-14 | |||||||||||||||
Bonds available for sale: | |||||||||||||||
U.S. government and government sponsored entities | $ | 526 | $ | 5 | $ | 281 | $ | 13 | $ | 807 | $ | 18 | |||
Obligations of states, municipalities and political | |||||||||||||||
subdivisions | 495 | 9 | 794 | 40 | 1,289 | 49 | |||||||||
Non-U.S. governments | 1,606 | 42 | 1,690 | 109 | 3,296 | 151 | |||||||||
Corporate debt | 12,132 | 450 | 11,570 | 672 | 23,702 | 1,122 | |||||||||
RMBS | 4,621 | 109 | 3,996 | 183 | 8,617 | 292 | |||||||||
CMBS | 220 | 1 | 2,087 | 58 | 2,307 | 59 | |||||||||
CDO/ABS | 3,857 | 50 | 1,860 | 78 | 5,717 | 128 | |||||||||
Total bonds available for sale | 23,457 | 666 | 22,278 | 1,153 | 45,735 | 1,819 | |||||||||
Equity securities available for sale: | |||||||||||||||
Common stock | 88 | 16 | 2 | 1 | 90 | 17 | |||||||||
Mutual funds | 280 | 37 | 64 | - | 344 | 37 | |||||||||
Total equity securities available for sale | 368 | 53 | 66 | 1 | 434 | 54 | |||||||||
Total | $ | 23,825 | $ | 719 | $ | 22,344 | $ | 1,154 | $ | 46,169 | $ | 1,873 | |||
31-Dec-13 | |||||||||||||||
Bonds available for sale: | |||||||||||||||
U.S. government and government sponsored entities | $ | 1,101 | $ | 34 | $ | 42 | $ | 5 | $ | 1,143 | $ | 39 | |||
Obligations of states, municipalities and political | |||||||||||||||
subdivisions | 6,134 | 379 | 376 | 67 | 6,510 | 446 | |||||||||
Non-U.S. governments | 4,102 | 217 | 710 | 141 | 4,812 | 358 | |||||||||
Corporate debt | 38,495 | 2,251 | 4,926 | 647 | 43,421 | 2,898 | |||||||||
RMBS | 8,543 | 349 | 1,217 | 124 | 9,760 | 473 | |||||||||
CMBS | 3,191 | 176 | 1,215 | 116 | 4,406 | 292 | |||||||||
CDO/ABS | 2,845 | 62 | 915 | 80 | 3,760 | 142 | |||||||||
Total bonds available for sale | 64,411 | 3,468 | 9,401 | 1,180 | 73,812 | 4,648 | |||||||||
Equity securities available for sale: | |||||||||||||||
Common stock | 96 | 14 | - | - | 96 | 14 | |||||||||
Preferred stock | 5 | 1 | - | - | 5 | 1 | |||||||||
Mutual funds | 369 | 24 | - | - | 369 | 24 | |||||||||
Total equity securities available for sale | 470 | 39 | - | - | 470 | 39 | |||||||||
Total | $ | 64,881 | $ | 3,507 | $ | 9,401 | $ | 1,180 | $ | 74,282 | $ | 4,687 | |||
At December 31, 2014, we held 6,394 and 118 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 2,123 individual fixed maturity securities were in a continuous unrealized loss position for longer than 12 months. We did not recognize the unrealized losses in earnings on these fixed maturity securities at December 31, 2014, because we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. For fixed maturity securities with significant declines, we performed fundamental credit analysis on a security-by-security basis, which included consideration of credit enhancements, expected defaults on underlying collateral, review of relevant industry analyst reports and forecasts and other available market data. | |||||||||||||||
Contractual Maturities of Fixed Maturity Securities Available for Sale | |||||||||||||||
The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity: | |||||||||||||||
Total Fixed Maturity Securities | Fixed Maturity Securities Available | ||||||||||||||
31-Dec-14 | Available for Sale | for Sale in a Loss Position | |||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Due in one year or less | $ | 9,821 | $ | 9,975 | $ | 637 | $ | 620 | |||||||
Due after one year through five years | 48,352 | 50,873 | 6,669 | 6,529 | |||||||||||
Due after five years through ten years | 62,685 | 65,889 | 12,873 | 12,338 | |||||||||||
Due after ten years | 63,168 | 69,442 | 10,255 | 9,607 | |||||||||||
Mortgage-backed, asset-backed and collateralized | 59,281 | 63,680 | 17,120 | 16,641 | |||||||||||
Total | $ | 243,307 | $ | 259,859 | $ | 47,554 | $ | 45,735 | |||||||
Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. | |||||||||||||||
The following table presents the gross realized gains and gross realized losses from sales or maturities of our available for sale securities: | |||||||||||||||
Years Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Gross | Gross | Gross | Gross | Gross | Gross | ||||||||||
Realized | Realized | Realized | Realized | Realized | Realized | ||||||||||
(in millions) | Gains | Losses | Gains | Losses | Gains | Losses | |||||||||
Fixed maturity securities | $ | 703 | $ | 118 | $ | 2,634 | $ | 202 | $ | 2,778 | $ | 171 | |||
Equity securities | 135 | 24 | 130 | 19 | 515 | 31 | |||||||||
Total | $ | 838 | $ | 142 | $ | 2,764 | $ | 221 | $ | 3,293 | $ | 202 | |||
For the years ended December 31, 2014, 2013 and 2012, the aggregate fair value of available for sale securities sold was $25.3 billion, $35.9 billion and $40.3 billion, which resulted in net realized capital gains of $0.7 billion, $2.5 billion and $3.1 billion, respectively. | |||||||||||||||
Other Securities Measured at Fair Value | |||||||||||||||
The following table presents the fair value of other securities measured at fair value based on our election of the fair value option: | |||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||
Fair | Percent | Fair | Percent | ||||||||||||
(in millions) | Value | of Total | Value | of Total | |||||||||||
Fixed maturity securities: | |||||||||||||||
U.S. government and government sponsored entities | $ | 5,498 | 27 | % | $ | 5,723 | 24 | % | |||||||
Obligations of states, territories and political subdivisions | 122 | 1 | 121 | 1 | |||||||||||
Non-U.S. governments | 2 | - | 2 | - | |||||||||||
Corporate debt | 719 | 3 | 1,169 | 5 | |||||||||||
Mortgage-backed, asset-backed and collateralized: | |||||||||||||||
RMBS | 2,094 | 10 | 2,263 | 10 | |||||||||||
CMBS | 1,077 | 5 | 1,353 | 6 | |||||||||||
CDO/ABS and other collateralized(a) | 10,200 | 49 | 11,985 | 51 | |||||||||||
Total mortgage-backed, asset-backed and collateralized | 13,371 | 64 | 15,601 | 67 | |||||||||||
Other | - | - | 7 | - | |||||||||||
Total fixed maturity securities | 19,712 | 95 | 22,623 | 97 | |||||||||||
Equity securities | 1,049 | 5 | 834 | 3 | |||||||||||
Total | $ | 20,761 | 100 | % | $ | 23,457 | 100 | % | |||||||
(a) Includes $0.9 billion and $1.0 billion of U.S. Government agency backed ABS at December 31, 2014 and 2013, respectively. | |||||||||||||||
Other Invested Assets | |||||||||||||||
The following table summarizes the carrying amounts of other invested assets: | |||||||||||||||
December 31, | |||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Alternative investments(a) | $ | 19,656 | $ | 19,709 | |||||||||||
Mutual funds | - | 85 | |||||||||||||
Investment real estate(b) | 3,612 | 3,113 | |||||||||||||
Aircraft asset investments(c) | 651 | 763 | |||||||||||||
Investments in life settlements | 3,753 | 3,601 | |||||||||||||
Investment in AerCap | 4,972 | - | |||||||||||||
All other investments | 1,874 | 1,388 | |||||||||||||
Total | $ | 34,518 | $ | 28,659 | |||||||||||
(a) Includes hedge funds, private equity funds, affordable housing partnerships, and other investment partnerships. | |||||||||||||||
(b) Net of accumulated depreciation of $315 million and $513 million in 2014 and 2013, respectively. | |||||||||||||||
(c) Consists primarily of investments in aircraft equipment held in consolidated trusts. | |||||||||||||||
Other Invested Assets Carried at Fair Value | |||||||||||||||
Certain hedge funds, private equity funds, affordable housing partnerships and other investment partnerships for which we have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income with the exception of investments of AIG’s Corporate and Other category, for which such changes are reported in Other income. Other investments in hedge funds, private equity funds, affordable housing partnerships and other investment partnerships in which our insurance operations do not hold aggregate interests sufficient to exercise more than minor influence over the respective partnerships are reported at fair value with changes in fair value recognized as a component of Accumulated other comprehensive income. These investments are subject to other-than-temporary impairment evaluations (see discussion below on evaluating equity investments for other-than-temporary impairment). The gross unrealized loss recorded in Other comprehensive income on such investments was $56 million and $15 million at December 31, 2014 and 2013, respectively, the majority of which pertains to investments in private equity funds and hedge funds that have been in continuous unrealized loss positions for less than 12 months. | |||||||||||||||
Other Invested Assets – Equity Method Investments | |||||||||||||||
We account for hedge funds, private equity funds, affordable housing partnerships and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating and financial policies, or we have elected the fair value option. Under the equity method of accounting, our carrying amount generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income with the exception of investments of AIG’s Corporate and Other category, for which such changes are reported in Other income. In applying the equity method of accounting, we consistently use the most recently available financial information provided by the general partner or manager of each of these investments, which is one to three months prior to the end of our reporting period. The financial statements of these investees are generally audited annually. | |||||||||||||||
Summarized Financial Information of Equity Method Investees | |||||||||||||||
The following is the aggregated summarized financial information of our equity method investees, including those for which the fair value option has been elected: | |||||||||||||||
Years Ended December 31, | |||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||
Operating results: | |||||||||||||||
Total revenues | $ | 29,579 | $ | 19,181 | $ | 9,438 | |||||||||
Total expenses | -7,828 | -5,515 | -5,183 | ||||||||||||
Net income | $ | 21,751 | $ | 13,666 | $ | 4,255 | |||||||||
At December 31, | |||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Balance sheet: | |||||||||||||||
Total assets | $ | 207,994 | $ | 150,586 | |||||||||||
Total liabilities | $ | -67,346 | $ | -25,134 | |||||||||||
The following table presents the carrying amount and ownership percentage of equity method investments at December 31, 2014 and 2013: | |||||||||||||||
2014 | 2013 | ||||||||||||||
Carrying | Ownership | Carrying | Ownership | ||||||||||||
(in millions, except percentages) | Value | Percentage | Value | Percentage | |||||||||||
Equity method investments | $ | 18,951 | Various | $ | 12,921 | Various | |||||||||
Summarized financial information for these equity method investees may be presented on a lag, due to the unavailability of information for the investees at our respective balance sheet dates, and is included for the periods in which we held an equity method ownership interest. | |||||||||||||||
Other Investments | |||||||||||||||
Also included in Other invested assets are real estate held for investment and aircraft asset investments held by non-Aircraft Leasing subsidiaries. These investments are reported at cost, less depreciation and are subject to impairment review, as discussed below. | |||||||||||||||
Investments in Life Settlements | |||||||||||||||
Investments in life settlements are accounted for under the investment method. Under the investment method, we recognize our initial investment in life settlements at the transaction price plus all initial direct external costs. Continuing costs to keep the policy in force, primarily life insurance premiums, increase the carrying amount of the investment. We recognize income on individual investments in life settlements when the insured dies, at an amount equal to the excess of the investment proceeds over the carrying amount of the investment at that time. These investments are subject to impairment review, as discussed below. | |||||||||||||||
During 2014, 2013 and 2012, income recognized on investments in life settlements was $407 million, $334 million and $253 million, respectively, and is included in Net investment income in the Consolidated Statements of Income. | |||||||||||||||
The following table presents further information regarding investments in life settlements: | |||||||||||||||
31-Dec-14 | |||||||||||||||
Number of | Carrying | Face Value | |||||||||||||
(dollars in millions) | Contracts | Value | (Death Benefits) | ||||||||||||
Remaining Life Expectancy of Insureds: | |||||||||||||||
0 – 1 year | 1 | $ | - | $ | - | ||||||||||
1 – 2 years | 12 | 9 | 19 | ||||||||||||
2 – 3 years | 18 | 11 | 19 | ||||||||||||
3 – 4 years | 77 | 42 | 93 | ||||||||||||
4 – 5 years | 152 | 205 | 436 | ||||||||||||
Thereafter | 4,687 | 3,486 | 15,370 | ||||||||||||
Total | 4,947 | $ | 3,753 | $ | 15,937 | ||||||||||
Remaining life expectancy for year 0-1 references policies whose current life expectancy is less than 12 months as of the valuation date. Remaining life expectancy is not an indication of expected maturity. Actual maturity dates in any category may vary significantly (either earlier or later) from the remaining life expectancies reported above. | |||||||||||||||
At December 31, 2014, management’s best estimate of the life insurance premiums required to keep the investments in life settlements in force, payable in the 12 months ending December 31, 2015 and the four succeeding years ending December 31, 2019 are $545 million, $562 million, $584 million, $607 million and $627 million, respectively. | |||||||||||||||
Net Investment Income | |||||||||||||||
Net investment income represents income primarily from the following sources: | |||||||||||||||
Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable. | |||||||||||||||
Dividend income from common and preferred stocks and distributions from other investments. | |||||||||||||||
Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option. | |||||||||||||||
Earnings from alternative investments. | |||||||||||||||
The difference between the carrying amount of an investment in life settlements and the life insurance proceeds of the underlying life insurance policy recorded in income upon the death of the insured. | |||||||||||||||
Changes in the fair values of our interests in ML II and AIA securities prior to sale and change in the fair value of our interests in ML III prior to the FRBNY liquidation of ML III assets. | |||||||||||||||
The following table presents the components of Net investment income: | |||||||||||||||
Years Ended December 31, | |||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||
Fixed maturity securities, including short-term investments | $ | 12,322 | $ | 12,044 | $ | 12,592 | |||||||||
Change in fair value of ML II | - | - | 246 | ||||||||||||
Change in fair value of ML III | - | - | 2,888 | ||||||||||||
Change in fair value of AIA securities including realized gain | - | - | 2,069 | ||||||||||||
Equity securities | 221 | 178 | 162 | ||||||||||||
Interest on mortgage and other loans | 1,272 | 1,144 | 1,083 | ||||||||||||
Alternative investments* | 2,624 | 2,803 | 1,769 | ||||||||||||
Real estate | 110 | 128 | 127 | ||||||||||||
Other investments | 47 | 61 | 11 | ||||||||||||
Total investment income | 16,596 | 16,358 | 20,947 | ||||||||||||
Investment expenses | 517 | 548 | 604 | ||||||||||||
Net investment income | $ | 16,079 | $ | 15,810 | $ | 20,343 | |||||||||
* Includes hedge funds, private equity funds, affordable housing partnerships, investments in life settlements and other investment partnerships. | |||||||||||||||
Net Realized Capital Gains and Losses | |||||||||||||||
Net realized capital gains and losses are determined by specific identification. The net realized capital gains and losses are generated primarily from the following sources: | |||||||||||||||
Sales of available for sale fixed maturity securities, available for sale equity securities and real estate. | |||||||||||||||
Reductions to the cost basis of available for sale fixed maturity securities, available for sale equity securities and certain other invested assets for other-than-temporary impairments. | |||||||||||||||
Impairments on investments in life settlements. | |||||||||||||||
Changes in fair value of derivatives except for (1) those instruments at AIGFP that are not intermediated on behalf of other AIG subsidiaries and (2) those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized capital gains (losses). | |||||||||||||||
Exchange gains and losses resulting from foreign currency transactions. | |||||||||||||||
The following table presents the components of Net realized capital gains (losses): | |||||||||||||||
Years Ended December 31, | |||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||
Sales of fixed maturity securities | $ | 585 | $ | 2,432 | $ | 2,607 | |||||||||
Sales of equity securities | 111 | 111 | 484 | ||||||||||||
Other-than-temporary impairments: | |||||||||||||||
Severity | -3 | -6 | -44 | ||||||||||||
Change in intent | -40 | -48 | -62 | ||||||||||||
Foreign currency declines | -19 | -1 | -8 | ||||||||||||
Issuer-specific credit events | -169 | -170 | -931 | ||||||||||||
Adverse projected cash flows | -16 | -7 | -5 | ||||||||||||
Provision for loan losses | -1 | -26 | 104 | ||||||||||||
Foreign exchange transactions | 598 | 151 | -233 | ||||||||||||
Derivative instruments | -177 | 287 | -529 | ||||||||||||
Impairments of investments in life settlements | -201 | -971 | -309 | ||||||||||||
Other | 71 | 187 | 13 | ||||||||||||
Net realized capital gains | $ | 739 | $ | 1,939 | $ | 1,087 | |||||||||
Change in Unrealized Appreciation (Depreciation) of Investments | |||||||||||||||
The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments: | |||||||||||||||
Years Ended | |||||||||||||||
December 31, | |||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Increase (decrease) in unrealized appreciation (depreciation) of investments: | |||||||||||||||
Fixed maturities | $ | 6,809 | $ | -14,066 | |||||||||||
Equity securities | 535 | 360 | |||||||||||||
Other investments | 376 | 101 | |||||||||||||
Total increase (decrease) in unrealized appreciation (depreciation) of investments* | $ | 7,720 | $ | -13,605 | |||||||||||
* Excludes net unrealized gains attributable to businesses held for sale. | |||||||||||||||
Evaluating Investments for Other-Than-Temporary Impairments | |||||||||||||||
Fixed Maturity Securities | |||||||||||||||
If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, an other-than-temporary impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized capital losses. When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. | |||||||||||||||
For fixed maturity securities for which a credit impairment has occurred, the amortized cost is written down to the estimated recoverable value with a corresponding charge to realized capital losses. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not related to a credit impairment is presented in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized (a separate component of accumulated other comprehensive income). | |||||||||||||||
When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class: | |||||||||||||||
Current delinquency rates; | |||||||||||||||
Expected default rates and the timing of such defaults; | |||||||||||||||
Loss severity and the timing of any recovery; and | |||||||||||||||
Expected prepayment speeds. | |||||||||||||||
For corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers the fair value as the recoverable value when available information does not indicate that another value is more relevant or reliable. When management identifies information that supports a recoverable value other than the fair value, the determination of a recoverable value considers scenarios specific to the issuer and the security, and may be based upon estimates of outcomes of corporate restructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets. | |||||||||||||||
We consider severe price declines in our assessment of potential credit impairments. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. | |||||||||||||||
In periods subsequent to the recognition of an other-than-temporary impairment charge for available for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and the expected undiscounted recoverable value over the remaining expected holding period of the security. | |||||||||||||||
Credit Impairments | |||||||||||||||
The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities: | |||||||||||||||
Years Ended December 31, | |||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||
Balance, beginning of year | $ | 3,872 | $ | 5,164 | $ | 6,504 | |||||||||
Increases due to: | |||||||||||||||
Credit impairments on new securities subject to impairment losses | 49 | 47 | 194 | ||||||||||||
Additional credit impairments on previously impaired securities | 85 | 78 | 483 | ||||||||||||
Reductions due to: | |||||||||||||||
Credit impaired securities fully disposed for which there was no | |||||||||||||||
prior intent or requirement to sell | -613 | -643 | -1,105 | ||||||||||||
Credit impaired securities for which there is a current intent or | |||||||||||||||
anticipated requirement to sell | - | - | -5 | ||||||||||||
Accretion on securities previously impaired due to credit* | -725 | -774 | -915 | ||||||||||||
Other | -9 | - | 8 | ||||||||||||
Balance, end of year | $ | 2,659 | $ | 3,872 | $ | 5,164 | |||||||||
* 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. | |||||||||||||||
Equity Securities | |||||||||||||||
We evaluate our available for sale equity securities for impairment by considering such securities as candidates for other-than-temporary impairment if they meet any of the following criteria: | |||||||||||||||
The security has traded at a significant (25 percent or more) discount to cost for an extended period of time (nine consecutive months or longer); | |||||||||||||||
A discrete credit event has occurred resulting in (i) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under the bankruptcy laws or any similar laws intended for court-supervised reorganization of insolvent enterprises; or (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than the par value of their claims; or | |||||||||||||||
We have concluded that we may not realize a full recovery on our investment, regardless of the occurrence of one of the foregoing events. | |||||||||||||||
The determination that an equity security is other-than-temporarily impaired requires the judgment of management and consideration of the fundamental condition of the issuer, its near-term prospects and all the relevant facts and circumstances. In addition to the above criteria, all equity securities that have been in a continuous decline in value below cost over twelve months are impaired. We also consider circumstances of a rapid and severe market valuation decline (50 percent or more) discount to cost, in which we could not reasonably assert that the impairment period would be temporary (severity losses). | |||||||||||||||
Other Invested Assets | |||||||||||||||
Our equity and cost method investments in private equity funds, hedge funds and other entities are evaluated for impairment similar to the evaluation of equity securities for impairments as discussed above. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investments and specific inherent risks. Such risks may evolve based on the nature of the underlying investments. | |||||||||||||||
Our investments in life settlements are monitored for impairment on a contract-by-contract basis quarterly. An investment in life settlements is considered impaired if the undiscounted cash flows resulting from the expected proceeds from the investment in life settlements would not be sufficient to recover our estimated future carrying amount of the investment in life settlements, which is the current carrying amount for the investment in life settlements plus anticipated undiscounted future premiums and other capitalizable future costs, if any. Impaired investments in life settlements are written down to their estimated fair value which is determined on a discounted cash flow basis, incorporating current market longevity assumptions and market yields. | |||||||||||||||
In general, fair value estimates for the investments in life settlements are calculated using cash flows based on medical underwriting ratings of the policies from a third-party underwriter, applied to an industry mortality table. Our mortality assumptions are based on an industry table as supplemented with proprietary data on the older age mortality of U.S. insured lives. Mortality improvement factors are applied to these assumptions based on our view of future mortality improvements likely to apply to the U.S. insured lives population. Our mortality assumptions coupled with the mortality improvement rates are used in our estimate of future net cash flows from the investments in life settlements. | |||||||||||||||
Our investments in aircraft assets and real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compare expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings. | |||||||||||||||
Purchased Credit Impaired (PCI) Securities | |||||||||||||||
We purchase certain RMBS securities that have experienced deterioration in credit quality since their issuance. We determine, based on our expectations as to the timing and amount of cash flows expected to be received, whether it is probable at acquisition that we will not collect all contractually required payments for these PCI securities, including both principal and interest after considering the effects of prepayments. At acquisition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security is determined based on our best estimate using key assumptions, such as interest rates, default rates and prepayment speeds. At acquisition, the difference between the undiscounted expected future cash flows of the PCI securities and the recorded investment in the securities represents the initial accretable yield, which is accreted into Net investment income over their remaining lives on a level-yield basis. Additionally, the difference between the contractually required payments on the PCI securities and the undiscounted expected future cash flows represents the non-accretable difference at acquisition. The accretable yield and the non-accretable difference will change over time, based on actual payments received and changes in estimates of undiscounted expected future cash flows, which are discussed further below. | |||||||||||||||
On a quarterly basis, the undiscounted expected future cash flows associated with PCI securities are re-evaluated based on updates to key assumptions. Declines in undiscounted expected future cash flows due to further credit deterioration as well as changes in the expected timing of the cash flows can result in the recognition of an other-than-temporary impairment charge, as PCI securities are subject to our policy for evaluating investments for other-than-temporary impairment. Changes to undiscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI securities will change the accretable yield prospectively. Significant increases in undiscounted expected future cash flows for reasons other than interest rate changes are recognized prospectively as adjustments to the accretable yield. | |||||||||||||||
The following tables present information on our PCI securities, which are included in bonds available for sale: | |||||||||||||||
(in millions) | At Date of Acquisition | ||||||||||||||
Contractually required payments (principal and interest) | $ | 30,520 | |||||||||||||
Cash flows expected to be collected* | 24,561 | ||||||||||||||
Recorded investment in acquired securities | 16,311 | ||||||||||||||
* Represents undiscounted expected cash flows, including both principal and interest. | |||||||||||||||
December 31, | December 31, | ||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Outstanding principal balance | $ | 16,962 | $ | 14,741 | |||||||||||
Amortized cost | 12,216 | 10,110 | |||||||||||||
Fair value | 13,462 | 11,338 | |||||||||||||
The following table presents activity for the accretable yield on PCI securities: | |||||||||||||||
Years Ended December 31, | |||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Balance, beginning of year | $ | 6,940 | $ | 4,766 | |||||||||||
Newly purchased PCI securities | 1,289 | 1,773 | |||||||||||||
Disposals | - | -60 | |||||||||||||
Accretion | -880 | -719 | |||||||||||||
Effect of changes in interest rate indices | -542 | 302 | |||||||||||||
Net reclassification from non-accretable difference, | |||||||||||||||
including effects of prepayments | 58 | 878 | |||||||||||||
Balance, end of year | $ | 6,865 | $ | 6,940 | |||||||||||
Pledged Investments | |||||||||||||||
Secured Financing and Similar Arrangements | |||||||||||||||
We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. In the majority of these repurchase agreements, the securities transferred by us may be sold or repledged by the counterparties. Repurchase agreements entered into by the DIB are carried at fair value based on market-observable interest rates. All other repurchase agreements are recorded at their contracted repurchase amounts plus accrued interest. | |||||||||||||||
At December 31, 2013, our secured financing transactions also included those that involve the transfer of securities to financial institutions in exchange for cash or other liquid collateral. Securities transferred by us under these financing transactions may be sold or repledged by the counterparties. As collateral for the securities transferred by us, counterparties transfer assets to us, such as cash or high quality fixed maturity securities. Collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the transferred securities during the life of the transactions. When we receive fixed maturity securities as collateral, we do not have the right to sell or repledge this collateral unless an event of default occurs by the counterparties. At the termination of the transactions, we and our counterparties are obligated to return the collateral provided and the securities transferred, respectively. | |||||||||||||||
The following table presents the fair value of securities pledged to counterparties under secured financing transactions: | |||||||||||||||
(in millions) | 31-Dec-14 | 31-Dec-13 | |||||||||||||
Securities available for sale | $ | - | $ | 3,837 | |||||||||||
Other securities | 2,122 | 2,766 | |||||||||||||
We also enter into agreements in which securities are purchased by us under agreements to resell (reverse repurchase agreements), which are accounted for as secured financing transactions and reported as Short-term investments or Other assets, depending on their terms. These agreements are recorded at their contracted resale amounts plus accrued interest, other than those that are accounted for at fair value. Such agreements entered into by the DIB are carried at fair value based on market observable interest rates. In all reverse repurchase transactions, we take possession of or obtain a security interest in the related securities, and we have the right to sell or repledge this collateral received. | |||||||||||||||
The following table presents information on the fair value of securities pledged to us under reverse repurchase agreements: | |||||||||||||||
(in millions) | 31-Dec-14 | 31-Dec-13 | |||||||||||||
Securities collateral pledged to us | $ | 2,506 | $ | 8,878 | |||||||||||
Amount repledged by us | 131 | 71 | |||||||||||||
Insurance – Statutory and Other Deposits | |||||||||||||||
Total carrying amounts of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance agreements, were $5.9 billion and $6.7 billion at December 31, 2014 and 2013, respectively. | |||||||||||||||
Other Pledges | |||||||||||||||
Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs. We owned an aggregate of $44 million and $57 million of stock in FHLBs at December 31, 2014 and 2013, respectively. To the extent an AIG subsidiary borrows from the FHLB, its ownership interest in the stock of FHLBs will be pledged to the FHLB. In addition, our subsidiaries have pledged securities available for sale with a fair value of $535 million and $80 million at December 31, 2014 and 2013, respectively, associated with advances from the FHLBs. | |||||||||||||||
Certain GIAs have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our long-term debt ratings. The actual amount of collateral required to be posted to the counterparties in the event of such downgrades, and the aggregate amount of payments that we could be required to make, depend on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. The fair value of securities pledged as collateral with respect to these obligations approximated $3.5 billion and $4.2 billion at December 31, 2014 and 2013, respectively. This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties. |
LENDING_ACTIVITIES
LENDING ACTIVITIES | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
LENDING ACTIVITIES | ||||||||||||||||||||||
LENDING ACTIVITIES | 7. LENDING ACTIVITIES | |||||||||||||||||||||
Mortgage and other loans receivable include commercial mortgages, life insurance policy loans, commercial loans, and other loans and notes receivable. Commercial mortgages, commercial loans, and other loans and notes receivable are carried at unpaid principal balances less credit allowances and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned. | ||||||||||||||||||||||
Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method. | ||||||||||||||||||||||
Life insurance policy loans are carried at unpaid principal amount. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy. | ||||||||||||||||||||||
The following table presents the composition of Mortgages and other loans receivable: | ||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||
Commercial mortgages* | $ | 18,909 | $ | 16,195 | ||||||||||||||||||
Life insurance policy loans | 2,710 | 2,830 | ||||||||||||||||||||
Commercial loans, other loans and notes receivable | 3,642 | 2,052 | ||||||||||||||||||||
Total mortgage and other loans receivable | 25,261 | 21,077 | ||||||||||||||||||||
Allowance for losses | -271 | -312 | ||||||||||||||||||||
Mortgage and other loans receivable, net | $ | 24,990 | $ | 20,765 | ||||||||||||||||||
* Commercial mortgages primarily represent loans for apartments, offices, retail and industrial properties, with exposures in California and New York representing the largest geographic concentrations (14 percent and 18 percent, respectively, at December 31, 2014 and 18 percent and 17 percent, respectively, at December 31, 2013). | ||||||||||||||||||||||
The following table presents the credit quality indicators for commercial mortgage loans: | ||||||||||||||||||||||
Number | Percent | |||||||||||||||||||||
31-Dec-14 | of | Class | of | |||||||||||||||||||
(dollars in millions) | Loans | Apartments | Offices | Retail | Industrial | Hotel | Others | Total(c) | Total $ | |||||||||||||
Credit Quality Indicator: | ||||||||||||||||||||||
In good standing | 1,007 | $ | 3,384 | $ | 6,100 | $ | 3,807 | $ | 1,689 | $ | 1,660 | $ | 1,812 | $ | 18,452 | 98 | % | |||||
Restructured(a) | 7 | - | 343 | 7 | - | 17 | - | 367 | 2 | |||||||||||||
90 days or less delinquent | 6 | - | - | 10 | - | - | 5 | 15 | - | |||||||||||||
>90 days delinquent or in | ||||||||||||||||||||||
process of foreclosure | 4 | - | 75 | - | - | - | - | 75 | - | |||||||||||||
Total(b) | 1,024 | $ | 3,384 | $ | 6,518 | $ | 3,824 | $ | 1,689 | $ | 1,677 | $ | 1,817 | $ | 18,909 | 100 | % | |||||
Allowance for losses | $ | 3 | $ | 86 | $ | 28 | $ | 22 | $ | 6 | $ | 14 | $ | 159 | 1 | % | ||||||
31-Dec-13 | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Credit Quality Indicator: | ||||||||||||||||||||||
In good standing | 978 | $ | 2,786 | $ | 4,636 | $ | 3,364 | $ | 1,607 | $ | 1,431 | $ | 1,970 | $ | 15,794 | 98 | % | |||||
Restructured(a) | 9 | 53 | 210 | 6 | - | - | 85 | 354 | 2 | |||||||||||||
90 days or less delinquent | 2 | - | - | 5 | - | - | - | 5 | - | |||||||||||||
>90 days delinquent or in | ||||||||||||||||||||||
process of foreclosure | 6 | - | 42 | - | - | - | - | 42 | - | |||||||||||||
Total(b) | 995 | $ | 2,839 | $ | 4,888 | $ | 3,375 | $ | 1,607 | $ | 1,431 | $ | 2,055 | $ | 16,195 | 100 | % | |||||
Allowance for losses | $ | 10 | $ | 109 | $ | 9 | $ | 19 | $ | 3 | $ | 51 | $ | 201 | 1 | % | ||||||
(a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. See discussion of troubled debt restructurings below. | ||||||||||||||||||||||
(b) Does not reflect allowance for losses. | ||||||||||||||||||||||
(c) Over 99 percent of the commercial mortgages held at such respective dates were current as to payments of principal and interest. | ||||||||||||||||||||||
Methodology Used to Estimate the Allowance for Losses | ||||||||||||||||||||||
Mortgage and other loans receivable are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. Impairment of commercial mortgages is typically determined using the fair value of collateral while impairment of other loans is typically determined using the present value of cash flows or the loan’s observable market price. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on the analysis of internal risk ratings and current loan values. Internal risk ratings are assigned based on the consideration of risk factors including past due status, debt service coverage, loan-to-value ratio, property occupancy, profile of the borrower and of the major property tenants, economic trends in the market where the property is located, and condition of the property. These factors and the resulting risk ratings also provide a basis for determining the level of monitoring performed at both the individual loan and the portfolio level. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance. Interest income on impaired loans is recognized as cash is received. For impaired loans where it has been determined that not all of the contractual principal due will be collected, any cash received is recorded as a reduction of the current carrying amount of the loan. | ||||||||||||||||||||||
A significant majority of commercial mortgage loans in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan. | ||||||||||||||||||||||
The following table presents a rollforward of the changes in the allowance for losses on Mortgage and other loans receivable: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Years Ended December 31, | Commercial | Other | Commercial | Other | Commercial | Other | ||||||||||||||||
(in millions) | Mortgages | Loans | Total | Mortgages | Loans | Total | Mortgages | Loans | Total | |||||||||||||
Allowance, beginning of year | $ | 201 | $ | 111 | $ | 312 | $ | 159 | $ | 246 | $ | 405 | $ | 305 | $ | 435 | $ | 740 | ||||
Loans charged off | -29 | -39 | -68 | -12 | -104 | -116 | -23 | -21 | -44 | |||||||||||||
Recoveries of loans previously | ||||||||||||||||||||||
charged off | 18 | 16 | 34 | 3 | 6 | 9 | 13 | 4 | 17 | |||||||||||||
Net charge-offs | -11 | -23 | -34 | -9 | -98 | -107 | -10 | -17 | -27 | |||||||||||||
Provision for loan losses | -31 | 23 | -8 | 52 | -32 | 20 | -136 | 33 | -103 | |||||||||||||
Other | - | 1 | 1 | -1 | -5 | -6 | - | - | - | |||||||||||||
Activity of discontinued operations | - | - | - | - | - | - | - | -205 | -205 | |||||||||||||
Allowance, end of year | $ | 159 * | $ | 112 | $ | 271 | $ | 201 * | $ | 111 | $ | 312 | $ | 159 * | $ | 246 | $ | 405 | ||||
* Of the total allowance at the end of the year, $55 million and $93 million relates to individually assessed credit losses on $192 million and $264 million of commercial mortgage loans as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||
We modify loans to optimize their returns and improve their collectability, among other things. When we undertake such a modification with a borrower that is experiencing financial difficulty and the modification involves us granting a concession to the troubled debtor, the modification is a troubled debt restructuring (TDR). We assess whether a borrower is experiencing financial difficulty based on a variety of factors, including the borrower’s current default on any of its outstanding debt, the probability of a default on any of its debt in the foreseeable future without the modification, the insufficiency of the borrower’s forecasted cash flows to service any of its outstanding debt (including both principal and interest), and the borrower’s inability to access alternative third-party financing at an interest rate that would be reflective of current market conditions for a non-troubled debtor. Concessions granted may include extended maturity dates, interest rate changes, principal or interest forgiveness, payment deferrals and easing of loan covenants. | ||||||||||||||||||||||
During 2014 and 2013, loans with a carrying value of $218 million and $91 million were modified in TDRs, respectively. |
REINSURANCE
REINSURANCE | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
REINSURANCE | |||||||||||||||||||||
REINSURANCE | 8. REINSURANCE | ||||||||||||||||||||
In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. In addition, our general insurance subsidiaries assume reinsurance from other insurance companies. We determine the portion of the incurred but not reported (IBNR) loss that will be recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss adjustment expenses incurred, ceded unearned premiums and ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for doubtful accounts requires judgment for which key inputs typically include historical trends regarding uncollectible balances, disputes and credit events as well as specific reviews of balances in dispute or subject to credit impairment. The allowance for doubtful accounts on reinsurance assets was $258 million and $276 million at December 31, 2014 and 2013, respectively. Changes in the allowance for doubtful accounts on reinsurance assets are reflected in Policyholder benefits and losses incurred within the Consolidated Statements of Income. | |||||||||||||||||||||
The following table provides supplemental information for loss and benefit reserves, gross and net of ceded reinsurance: | |||||||||||||||||||||
At December 31, | 2014 | 2013 | |||||||||||||||||||
As | Net of | As | Net of | ||||||||||||||||||
(in millions) | Reported | Reinsurance | Reported | Reinsurance | |||||||||||||||||
Liability for unpaid losses and loss adjustment expenses(a) | $ | -77,260 | $ | -61,612 | $ | -81,547 | $ | -64,316 | |||||||||||||
Future policy benefits for life and accident and health insurance contracts | -42,749 | -41,767 | -40,653 | -39,619 | |||||||||||||||||
Reserve for unearned premiums | -21,324 | -18,278 | -21,953 | -18,532 | |||||||||||||||||
Reinsurance assets(b) | 19,676 | 21,686 | |||||||||||||||||||
(a) In 2014 and 2013, the Net of Reinsurance amount reflects the cession under the June 17, 2011 transaction with National Indemnity Company (NICO) of $1.5 billion and $1.6 billion, respectively. | |||||||||||||||||||||
(b) Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses. | |||||||||||||||||||||
Short-Duration Reinsurance | |||||||||||||||||||||
Short-duration reinsurance is affected under reinsurance treaties and by negotiation on individual risks. Certain of these reinsurance arrangements consist of excess of loss contracts that protect us against losses above stipulated amounts. Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection received. Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of Reinsurance assets. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premiums. For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. | |||||||||||||||||||||
The following table presents short-duration insurance premiums written and earned: | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
Non-Life Insurance Companies | |||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||
Premiums written: | |||||||||||||||||||||
Direct | $ | 39,375 | $ | 39,833 | $ | 40,647 | |||||||||||||||
Assumed | 3,399 | 4,306 | 4,900 | ||||||||||||||||||
Ceded | -8,318 | -9,514 | -11,054 | ||||||||||||||||||
Net | $ | 34,456 | $ | 34,625 | $ | 34,493 | |||||||||||||||
Premiums earned: | |||||||||||||||||||||
Direct | $ | 38,707 | $ | 39,018 | $ | 41,028 | |||||||||||||||
Assumed | 3,258 | 3,516 | 3,133 | ||||||||||||||||||
Ceded | -8,140 | -8,585 | -9,375 | ||||||||||||||||||
Net | $ | 33,825 | $ | 33,949 | $ | 34,786 | |||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, reinsurance recoveries, which reduced losses and loss adjustment expenses incurred, amounted to $2.6 billion, $3.3 billion and $4.5 billion, respectively. | |||||||||||||||||||||
Long-Duration Reinsurance | |||||||||||||||||||||
Long-duration reinsurance is effected principally under yearly renewable term treaties. The premiums with respect to these treaties are earned over the contract period in proportion to the protection provided. Amounts recoverable from reinsurers on long-duration contracts are estimated in a manner consistent with the assumptions used for the underlying policy benefits and are presented as a component of Reinsurance assets. | |||||||||||||||||||||
The following table presents premiums for our long-duration insurance and retirement services operations: | |||||||||||||||||||||
Years Ended | |||||||||||||||||||||
December 31, | Life Insurance Companies | Run-off insurance lines | Total | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||
Gross premiums | $ | 4,059 | $ | 4,155 | $ | 3,963 | $ | 11 | $ | 9 | $ | 11 | $ | 4,070 | $ | 4,164 | $ | 3,974 | |||
Ceded premiums | -661 | -620 | -581 | - | - | - | -661 | -620 | -581 | ||||||||||||
Net | $ | 3,398 | $ | 3,535 | $ | 3,382 | $ | 11 | $ | 9 | $ | 11 | $ | 3,409 | $ | 3,544 | $ | 3,393 | |||
Long-duration reinsurance recoveries, which reduced Policyholder benefits and losses incurred, were approximately $731 million, $714 million and $758 million, respectively, for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||
The following table presents long-duration insurance in-force ceded to other insurance companies: | |||||||||||||||||||||
At December 31, | |||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012* | ||||||||||||||||||
Long-duration insurance in force ceded | $ | 180,178 | $ | 122,012 | $ | 129,159 | |||||||||||||||
* Excludes amounts related to held-for-sale entities. | |||||||||||||||||||||
Long-duration insurance in force assumed represented 0.04 percent of gross long-duration insurance in force at December 31, 2014, 0.05 percent at December 31, 2013 and 0.05 percent at December 31, 2012, and premiums assumed by the Life Insurance Companies represented 0.5 percent, 0.3 percent and 0.4 percent of gross premiums for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
The domestic Life Insurance Companies utilize internal and third-party reinsurance relationships to manage insurance risks and to facilitate capital management strategies, which allows them to minimize the use of letters of credit and utilize capital more efficiently. Pools of highly-rated third-party reinsurers are utilized to manage net amounts at risk in excess of retention limits. | |||||||||||||||||||||
The domestic Life Insurance Companies manage the capital impact on their statutory reserve requirements under the NAIC Model Regulation “Valuation of Life Insurance Policies” (Regulation XXX) and NAIC Actuarial Guideline 38 (Guideline AXXX) through intercompany reinsurance transactions. Under GAAP, these intercompany reinsurance transactions are eliminated in consolidation. Under one arrangement, one of the domestic Life Insurance Companies obtains letters of credit to support statutory recognition of the ceded reinsurance. As of December 31, 2014, the domestic Life Insurance Companies had two bilateral letters of credit totaling $450 million with AIG entities, which were issued on February 7, 2014 and expire on February 7, 2019, but will be automatically extended without amendment by one year on each anniversary of the issuance date, unless the issuer provides notice of non-renewal. See Note 20 for additional information on the use of affiliated reinsurance for Regulation XXX and Guideline AXXX reserves. | |||||||||||||||||||||
Reinsurance Security | |||||||||||||||||||||
Our third-party reinsurance arrangements do not relieve us from our direct obligations to our beneficiaries. Thus, a credit exposure exists with respect to both short-duration and long-duration reinsurance ceded to the extent that any reinsurer fails to meet the obligations assumed under any reinsurance agreement. We hold substantial collateral as security under related reinsurance agreements in the form of funds, securities, and/or letters of credit. A provision has been recorded for estimated unrecoverable reinsurance. |
DEFERRED_POLICY_ACQUISITION_CO
DEFERRED POLICY ACQUISITION COSTS | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
DEFERRED POLICY ACQUISITION COSTS | |||||||
DEFERRED POLICY ACQUISITION COSTS | 9. DEFERRED POLICY ACQUISITION COSTS | ||||||
Deferred policy acquisition costs (DAC) represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such deferred policy acquisition costs generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analyzed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts. | |||||||
We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates. | |||||||
Short-duration insurance contracts: Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, generally 12 months. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC. We assess the recoverability of DAC on an annual basis or more frequently if circumstances indicate an impairment may have occurred. This assessment is performed by comparing recorded net unearned premiums and anticipated investment income on in-force business to the sum of expected losses and loss adjustment expenses incurred, unamortized DAC and maintenance costs. If the sum of these costs exceeds the amount of recorded net unearned premiums and anticipated investment income, the excess is recognized as an offset against the asset established for DAC. This offset is referred to as a premium deficiency charge. Increases in expected losses and loss adjustment expenses incurred can have a significant impact on the likelihood and amount of a premium deficiency charge. | |||||||
Long-duration insurance contracts: Policy acquisition costs for participating life, traditional life and accident and health insurance products are generally deferred and amortized, with interest, over the premium paying period. The assumptions used to calculate the benefit liabilities and DAC for these traditional products are set when a policy is issued and do not change with changes in actual experience, unless a loss recognition event occurs. These “locked-in” assumptions include mortality, morbidity, persistency, maintenance expenses and investment returns, and include margins for adverse deviation to reflect uncertainty given that actual experience might deviate from these assumptions. A loss recognition event occurs when there is a shortfall between the carrying amounts of future policy benefit liabilities net of DAC and the amount the future policy benefit liabilities net of DAC would be when applying updated current assumptions. When we determine a loss recognition event has occurred, we first reduce any DAC related to that block of business through amortization of acquisition expense, and after DAC is depleted, we record additional liabilities through a charge to Policyholder benefits and losses incurred. Groupings for loss recognition testing are consistent with our manner of acquiring and servicing the business and applied by product groupings. We perform separate loss recognition tests for traditional life products, payout annuities and long-term care products. Once loss recognition has been recorded for a block of business, the old assumption set is replaced and the assumption set used for the loss recognition would then be subject to the lock-in principle. | |||||||
Investment-oriented contracts: Policy acquisition costs and policy issuance costs related to universal life and investment-type products (collectively, investment-oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts. Estimated gross profits include net investment income and spreads, net realized investment gains and losses, fees, surrender charges, expenses, and mortality gains and losses. In each reporting period, current period amortization expense is adjusted to reflect actual gross profits. If estimated gross profits change significantly, DAC is recalculated using the new assumptions, and any resulting adjustment is included in income. If the new assumptions indicate that future estimated gross profits are higher than previously estimated, DAC will be increased resulting in a decrease in amortization expense and increase in income in the current period; if future estimated gross profits are lower than previously estimated, DAC will be decreased resulting in an increase in amortization expense and decrease in income in the current period. Updating such assumptions may result in acceleration of amortization in some products and deceleration of amortization in other products. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts. | |||||||
To estimate future estimated gross profits for variable annuity products, a long-term annual asset growth assumption is applied to determine the future growth in assets and related asset-based fees. In determining the asset growth rate, the effect of short-term fluctuations in the equity markets is partially mitigated through the use of a “reversion to the mean” methodology whereby short-term asset growth above or below long-term annual rate assumptions impact the growth assumption applied to the five-year period subsequent to the current balance sheet date. The reversion to the mean methodology allows us to maintain our long-term growth assumptions, while also giving consideration to the effect of actual investment performance. When actual performance significantly deviates from the annual long-term growth assumption, as evidenced by growth assumptions in the five-year reversion to the mean period falling below a certain rate (floor) or above a certain rate (cap) for a sustained period, judgment may be applied to revise or “unlock” the growth rate assumptions to be used for both the five-year reversion to the mean period as well as the long-term annual growth assumption applied to subsequent periods. | |||||||
Shadow DAC and Shadow Loss Recognition: DAC related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity and equity securities available for sale on estimated gross profits, with related changes recognized through Other comprehensive income (shadow DAC). The adjustment is made at each balance sheet date, as if the securities had been sold at their stated aggregate fair value and the proceeds reinvested at current yields. Similarly, for long-duration traditional insurance contracts, if the assets supporting the liabilities maintain a temporary net unrealized gain position at the balance sheet date, loss recognition testing assumptions are updated to exclude such gains from future cash flows by reflecting the impact of reinvestment rates on future yields. If a future loss is anticipated under this basis, any additional shortfall indicated by loss recognition tests is recognized as a reduction in accumulated other comprehensive income (shadow loss recognition). Similar to other loss recognition on long-duration insurance contracts, such shortfall is first reflected as a reduction in DAC and secondly as an increase in liabilities for future policy benefits. The change in these adjustments, net of tax, is included with the change in net unrealized appreciation of investments that is credited or charged directly to Other comprehensive income. | |||||||
Internal Replacements of Long-duration and Investment-oriented Products: For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If the modification does not substantially change the contract, we do not change the accounting and amortization of existing DAC and related actuarial balances. If an internal replacement represents a substantial change, the original contract is considered to be extinguished and any related DAC or other policy balances are charged or credited to income, and any new deferrable costs associated with the replacement contract are deferred. | |||||||
Value of Business Acquired (VOBA) is determined at the time of acquisition and is reported in the Consolidated Balance Sheets with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For participating life, traditional life and accident and health insurance products, VOBA is amortized over the life of the business in a manner similar to that for DAC based on the assumptions at purchase. For investment-oriented products, VOBA is amortized in relation to estimated gross profits and adjusted for the effect of unrealized gains or losses on fixed maturity and equity securities available for sale in a manner similar to DAC. | |||||||
The following table presents a rollforward of DAC and VOBA: | |||||||
Years Ended December 31, | |||||||
(in millions) | 2014 | 2013 | 2012 | ||||
Non-Life Insurance Companies: | |||||||
Balance, beginning of year | $ | 2,493 | $ | 2,342 | $ | 2,306 | |
Acquisition costs deferred | 4,805 | 4,803 | 4,834 | ||||
Amortization expense | -4,599 | -4,481 | -4,764 | ||||
Other | -148 | -171 | -34 | ||||
Balance, end of year | $ | 2,551 | $ | 2,493 | $ | 2,342 | |
Life Insurance Companies: | |||||||
Balance, beginning of year | $ | 6,920 | $ | 5,815 | $ | 6,607 | |
Acquisition costs deferred | 1,114 | 1,034 | 788 | ||||
Amortization expense | -727 | -674 | -945 | ||||
Change in net unrealized gains (losses) on securities | -360 | 784 | -621 | ||||
Decrease due to foreign exchange | -32 | -39 | -14 | ||||
Other | 343 | - | - | ||||
Balance, end of year | $ | 7,258 | $ | 6,920 | $ | 5,815 | |
Consolidation and eliminations | 18 | 23 | 25 | ||||
Total deferred policy acquisition costs* | $ | 9,827 | $ | 9,436 | $ | 8,182 | |
Supplemental Information: | |||||||
VOBA amortization expense included in Life Insurance Companies DAC amortization | 17 | 23 | 58 | ||||
VOBA, end of year included in Life Insurance Companies DAC balance | 510 | 373 | 368 | ||||
* Net of reductions in DAC of $1.4 billion, $1.1 billion, and $1.8 billion for Life Insurance Companies at December 31, 2014, 2013 and 2012, respectively, related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC). | |||||||
The percentage of the unamortized balance of VOBA at December 31, 2014 expected to be amortized in 2015 through 2019 by year is: 10.1 percent, 8.9 percent, 7.9 percent, 7.2 percent and 6.7 percent, respectively, with 59.2 percent being amortized after five years. These projections are based on current estimates for investment income and spreads, persistency, mortality and morbidity assumptions. | |||||||
DAC, VOBA and SIA for insurance-oriented and investment-oriented products are reviewed for recoverability, which involves estimating the future profitability of current business. This review involves significant management judgment. If actual future profitability is substantially lower than estimated, AIG’s DAC, VOBA and SIA may be subject to an impairment charge and AIG’s results of operations could be significantly affected in future periods. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
VARIABLE INTEREST ENTITIES | |||||||||||||
VARIABLE INTEREST ENTITIES | 10. VARIABLE INTEREST ENTITIES | ||||||||||||
A variable interest entity (VIE) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on other criteria discussed below. | |||||||||||||
We enter into various arrangements with VIEs in the normal course of business and consolidate the VIEs when we determine we are the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks the entity was designed to expose the variable interest holders to. | |||||||||||||
For VIEs with attributes consistent with that of an investment company or a money market fund, the primary beneficiary is the party or group of related parties that absorbs a majority of the expected losses of the VIE, receives the majority of the expected residual returns of the VIE, or both. | |||||||||||||
For all other VIEs, the primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE. | |||||||||||||
Balance Sheet Classification and Exposure to Loss | |||||||||||||
The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Consolidated Balance Sheets: | |||||||||||||
(in millions) | Real Estate and Investment Entities(d) | Securitization Vehicles | Structured Investment Vehicle | Affordable Housing Partnerships | Other | Total | |||||||
31-Dec-14 | |||||||||||||
Assets: | |||||||||||||
Bonds available for sale | $ | - | $ | 11,152 | $ | - | $ | - | $ | 35 | $ | 11,187 | |
Other bond securities | - | 7,251 | 615 | - | 40 | 7,906 | |||||||
Mortgage and other loans receivable | - | 2,398 | - | - | 162 | 2,560 | |||||||
Other invested assets | 577 | 651 | - | 1,684 | 29 | 2,941 | |||||||
Other(a) | 40 | 1,447 | 140 | 49 | 76 | 1,752 | |||||||
Total assets(b) | $ | 617 | $ | 22,899 | $ | 755 | $ | 1,733 | $ | 342 | $ | 26,346 | |
Liabilities: | |||||||||||||
Long-term debt | $ | 69 | $ | 1,370 | $ | 52 | $ | 199 | $ | 7 | $ | 1,697 | |
Other(c) | 32 | 276 | - | 101 | 37 | 446 | |||||||
Total liabilities | $ | 101 | $ | 1,646 | $ | 52 | $ | 300 | $ | 44 | $ | 2,143 | |
31-Dec-13 | |||||||||||||
Assets: | |||||||||||||
Bonds available for sale | $ | - | $ | 11,028 | $ | - | $ | - | $ | 70 | $ | 11,098 | |
Other bond securities | - | 7,449 | 748 | - | 113 | 8,310 | |||||||
Mortgage and other loans receivable | - | 1,508 | - | - | 189 | 1,697 | |||||||
Other invested assets | 849 | 763 | - | 1,986 | 30 | 3,628 | |||||||
Other(a) | 49 | 1,014 | 93 | 41 | 82 | 1,279 | |||||||
Total assets(b) | $ | 898 | $ | 21,762 | $ | 841 | $ | 2,027 | $ | 484 | $ | 26,012 | |
Liabilities: | |||||||||||||
Long-term debt | $ | 71 | $ | 626 | $ | 87 | $ | 188 | $ | 22 | $ | 994 | |
Other(c) | 31 | 225 | - | 83 | 216 | 555 | |||||||
Total liabilities | $ | 102 | $ | 851 | $ | 87 | $ | 271 | $ | 238 | $ | 1,549 | |
(a) Comprised primarily of Short-term investments, Premiums and other receivables and Other assets at both December 31, 2014 and 2013. | |||||||||||||
(b) The assets of each VIE can be used only to settle specific obligations of that VIE. | |||||||||||||
(c) Comprised primarily of Other liabilities and Derivative liabilities, at fair value, at both December 31, 2014 and 2013. | |||||||||||||
(d) At December 31, 2014 and 2013, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $56.4 million and $50.8 million, respectively. | |||||||||||||
We calculate our maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where we have also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE. Interest holders in VIEs sponsored by us generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to us, except in limited circumstances when we have provided a guarantee to the VIE’s interest holders. | |||||||||||||
The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as well as our maximum exposure to loss associated with these VIEs: | |||||||||||||
Maximum Exposure to Loss | |||||||||||||
Total VIE | On-Balance | Off-Balance | |||||||||||
(in millions) | Assets | Sheet* | Sheet | Total | |||||||||
31-Dec-14 | |||||||||||||
Real estate and investment entities | $ | 19,949 | $ | 2,785 | $ | 454 | $ | 3,239 | |||||
Affordable housing partnerships | 7,911 | 425 | - | 425 | |||||||||
Other | 617 | 32 | - | 32 | |||||||||
Total | $ | 28,477 | $ | 3,242 | $ | 454 | $ | 3,696 | |||||
31-Dec-13 | |||||||||||||
Real estate and investment entities | $ | 17,572 | $ | 2,343 | $ | 289 | $ | 2,632 | |||||
Affordable housing partnerships | 8,559 | 477 | - | 477 | |||||||||
Other | 708 | 37 | - | 37 | |||||||||
Total | $ | 26,839 | $ | 2,857 | $ | 289 | $ | 3,146 | |||||
* At December 31, 2014 and 2013, $3.2 billion and $2.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. | |||||||||||||
Real Estate and Investment Entities | |||||||||||||
Through our insurance operations and AIG Global Real Estate, we are an investor in various real estate investment entities, some of which are VIEs. These investments are typically with unaffiliated third-party developers via a partnership or limited liability company structure. The VIEs’ activities consist of the development or redevelopment of commercial, industrial and residential real estate. Our involvement varies from being a passive equity investor or finance provider to actively managing the activities of the VIEs. | |||||||||||||
Our insurance operations participate as passive investors in the equity issued by certain third-party-managed hedge and private equity funds that are VIEs. Our insurance operations typically are not involved in the design or establishment of these VIEs, nor do they actively participate in the management of the VIEs. | |||||||||||||
Securitization Vehicles | |||||||||||||
We created certain VIEs that hold investments, primarily in investment-grade debt securities and loans, and issued beneficial interests in these investments. The majority of these beneficial interests are owned by our insurance operations and we maintain the power to direct the activities of the VIEs that most significantly impact their economic performance and bear the obligation to absorb losses or receive benefits from the entities that could potentially be significant to the entities. Accordingly, we consolidate these entities and those beneficial interests issued to third-parties are reported as Long-term debt. | |||||||||||||
We also created VIEs for the purpose of acquiring, owning, leasing, maintaining, operating and selling aircraft. We hold beneficial interests, including all the equity interests, in these entities. Other beneficial interests include passive investments by our insurance operations in the majority of the debt issued by these entities. We maintain the power to direct the activities of the VIEs that most significantly impact the entities’ economic performance and bear the obligation to absorb economic losses or receive economic benefits that could potentially be significant to the VIEs. As a result, we consolidate the assets and liabilities of these entities. | |||||||||||||
Structured Investment Vehicle | |||||||||||||
Through DIB, we sponsor Nightingale Finance Ltd., a structured investment vehicle (SIV), which is a VIE. Nightingale Finance Ltd. invests in variable rate, investment-grade debt securities, the majority of which are ABS. We have no equity interest in the SIV, but we maintain the power to direct the activities of the SIV that most significantly impact the entity’s economic performance and bear the obligation to absorb economic losses that could potentially be significant to the SIV. We are the primary beneficiary and consolidate the SIV. | |||||||||||||
Affordable Housing Partnerships | |||||||||||||
SunAmerica Affordable Housing Partners, Inc. (SAAHP) organizes and invests in limited partnerships that develop and operate affordable housing qualifying for federal tax credits, in addition to a few market rate properties across the United States. The operating partnerships are VIEs, whose debt is generally non-recourse in nature, and the general partners of which are mostly unaffiliated third-party developers. We do not consolidate an operating partnership if the general partner is an unaffiliated entity and we do not have the power to direct activities that most significantly impact the entities’ economic performance. Through approximately 900 partnerships, SAAHP has limited partnership investments in developments with approximately 110,000 apartment units nationwide, and as of December 31, 2014, has syndicated approximately $7.7 billion in partnership equity to other investors who will receive, among other benefits, tax credits under certain sections of the Internal Revenue Code. The pre-tax income of SAAHP is reported as a component of the Consumer Insurance segment. | |||||||||||||
RMBS, CMBS, Other ABS and CDOs | |||||||||||||
Primarily through our insurance operations, we are a passive investor in RMBS, CMBS, other ABS and CDOs, the majority of which are issued by domestic special purpose entities. We generally do not sponsor or transfer assets to, or act as the servicer to these asset-backed structures, and were not involved in the design of these entities. | |||||||||||||
Through the DIB, we also invest in CDOs and similar structures, which can be cash-based or synthetic and are managed by third parties. The role of DIB is generally limited to that of a passive investor in structures we do not manage. | |||||||||||||
Our maximum exposure in these types of structures is limited to our investment in securities issued by these entities. Based on the nature of our investments and our passive involvement in these types of structures, we have determined that we are not the primary beneficiary of these entities. We have not included these entities in the above tables; however, the fair values of our investments in these structures are reported in Notes 5 and 6 herein. |
DERIVATIVES_AND_HEDGE_ACCOUNTI
DERIVATIVES AND HEDGE ACCOUNTING | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
DERIVATIVES AND HEDGE ACCOUNTING | ||||||||||||||||||||
DERIVATIVES AND HEDGE ACCOUNTING | 11. DERIVATIVES AND HEDGE ACCOUNTING | |||||||||||||||||||
We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. Interest rate, currency, equity and commodity swaps, credit contracts (including the super senior credit default swap portfolio), swaptions, options and forward transactions are accounted for as derivatives, recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. In certain instances, a contract’s transaction price is the best indication of initial fair value. Aggregate asset or liability positions are netted on the Consolidated Balance Sheets only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty. Cash collateral posted with counterparties in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset. | ||||||||||||||||||||
Derivatives, with the exception of bifurcated embedded derivatives, are reflected in the Consolidated Balance Sheets in Derivative assets, at fair value and Derivative liabilities, at fair value. A bifurcated embedded derivative is measured at fair value and accounted for in the same manner as a free standing derivative contract. The corresponding host contract is accounted for according to the accounting guidance applicable for that instrument. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. See Notes 5 and 14 herein for additional information on embedded policy derivatives. | ||||||||||||||||||||
Effective April 1, 2014, we reclassified cross-currency swaps from Interest rate contracts to Foreign exchange contracts. This change was applied prospectively. | ||||||||||||||||||||
The following table presents the notional amounts and fair values of our derivative instruments: | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
Gross Derivative Assets | Gross Derivative Liabilities | Gross Derivative Assets | Gross Derivative Liabilities | |||||||||||||||||
Notional | Fair | Notional | Fair | Notional | Fair | Notional | Fair | |||||||||||||
(in millions) | Amount | Value(a) | Amount | Value(a) | Amount | Value(a) | Amount | Value(a) | ||||||||||||
Derivatives designated as | ||||||||||||||||||||
hedging instruments: | ||||||||||||||||||||
Interest rate contracts | $ | 155 | $ | - | $ | 25 | $ | 2 | $ | - | $ | - | $ | 112 | $ | 15 | ||||
Foreign exchange contracts | 611 | 25 | 1,794 | 239 | - | - | 1,857 | 190 | ||||||||||||
Equity contracts | 7 | 1 | 104 | 13 | - | - | - | - | ||||||||||||
Derivatives not designated | ||||||||||||||||||||
as hedging instruments: | ||||||||||||||||||||
Interest rate contracts | 65,070 | 3,743 | 45,251 | 3,183 | 50,897 | 3,771 | 59,585 | 3,849 | ||||||||||||
Foreign exchange contracts | 13,667 | 815 | 8,516 | 1,251 | 1,774 | 52 | 3,789 | 129 | ||||||||||||
Equity contracts(b) | 7,565 | 206 | 42,387 | 1,615 | 29,296 | 413 | 9,840 | 524 | ||||||||||||
Commodity contracts | 15 | - | 11 | 6 | 17 | 1 | 13 | 5 | ||||||||||||
Credit contracts | 5 | 4 | 5,288 | 982 | 70 | 55 | 15,459 | 1,335 | ||||||||||||
Other contracts(c) | 36,155 | 31 | 538 | 90 | 32,440 | 34 | 1,408 | 167 | ||||||||||||
Total derivatives not | ||||||||||||||||||||
designated as hedging | ||||||||||||||||||||
instruments | 122,477 | 4,799 | 101,991 | 7,127 | 114,494 | 4,326 | 90,094 | 6,009 | ||||||||||||
Total derivatives, gross | $ | 123,250 | $ | 4,825 | $ | 103,914 | $ | 7,381 | $ | 114,494 | $ | 4,326 | $ | 92,063 | $ | 6,214 | ||||
(a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. | ||||||||||||||||||||
(b) There were no derivative assets or notionals related to bifurcated embedded derivatives at December 31, 2014. Notional amount of derivative assets and fair value of derivative assets include $23.2 billion and $107 million at December 31, 2013 related to bifurcated embedded derivatives. Notional amount of derivative liabilities and fair values of derivative liabilities include $39.3 billion and $1.5 billion, respectively, at December 31, 2014 and $6.7 billion and $424 million, respectively at December 31, 2013 related to bifurcated embedded derivatives. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. | ||||||||||||||||||||
(c) Consists primarily of contracts with multiple underlying exposures. | ||||||||||||||||||||
The following table presents the fair values of derivative assets and liabilities in the Consolidated Balance Sheets: | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | |||||||||||||||||
Notional | Fair | Notional | Fair | Notional | Fair | Notional | Fair | |||||||||||||
(in millions) | Amount | Value | Amount | Value | Amount | Value | Amount | Value | ||||||||||||
Global Capital Markets derivatives: | ||||||||||||||||||||
AIG Financial Products | $ | 23,153 | $ | 2,445 | $ | 27,719 | $ | 3,019 | $ | 41,942 | $ | 2,567 | $ | 52,679 | $ | 3,506 | ||||
AIG Markets | 55,005 | 1,935 | 29,251 | 2,136 | 12,531 | 964 | 23,716 | 1,506 | ||||||||||||
Total Global Capital Markets derivatives | 78,158 | 4,380 | 56,970 | 5,155 | 54,473 | 3,531 | 76,395 | 5,012 | ||||||||||||
Non-Global Capital Markets derivatives(a) | 45,092 | 445 | 46,944 | 2,226 | 60,021 | 795 | 15,668 | 1,202 | ||||||||||||
Total derivatives, gross | $ | 123,250 | 4,825 | $ | 103,914 | 7,381 | $ | 114,494 | 4,326 | $ | 92,063 | 6,214 | ||||||||
Counterparty netting(b) | -2,102 | -2,102 | -1,734 | -1,734 | ||||||||||||||||
Cash collateral(c) | -1,119 | -1,429 | -820 | -1,484 | ||||||||||||||||
Total derivatives, net | 1,604 | 3,850 | 1,772 | 2,996 | ||||||||||||||||
Less: Bifurcated embedded derivatives | - | 1,577 | 107 | 485 | ||||||||||||||||
Total derivatives on consolidated | ||||||||||||||||||||
balance sheet | $ | 1,604 | $ | 2,273 | $ | 1,665 | $ | 2,511 | ||||||||||||
(a) Represents derivatives used to hedge the foreign currency and interest rate risk associated with insurance as well as embedded derivatives included in insurance contracts. Assets and liabilities include bifurcated embedded derivatives, which are recorded in Policyholder contract deposits. | ||||||||||||||||||||
(b) Represents netting of derivative exposures covered by a qualifying master netting agreement. | ||||||||||||||||||||
(c) Represents cash collateral posted and received that is eligible for netting. | ||||||||||||||||||||
Collateral | ||||||||||||||||||||
We engage in derivative transactions that are not subject to a clearing requirement directly with unaffiliated third parties, in most cases, under International Swaps and Derivatives Association, Inc. (ISDA) agreements. Many of the ISDA agreements also include Credit Support Annex (CSA) provisions, which provide for collateral postings that may vary at various ratings and threshold levels. We attempt to reduce our risk with certain counterparties by entering into agreements that enable collateral to be obtained from a counterparty on an upfront or contingent basis. We minimize the risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and may require additional collateral to be posted upon the occurrence of certain events or circumstances. In addition, certain derivative transactions have provisions that require collateral to be posted upon a downgrade of our long-term debt ratings or give the counterparty the right to terminate the transaction. In the case of some of the derivative transactions, upon a downgrade of our long-term debt ratings, as an alternative to posting collateral and subject to certain conditions, we may assign the transaction to an obligor with higher debt ratings or arrange for a substitute guarantee of our obligations by an obligor with higher debt ratings or take other similar action. The actual amount of collateral required to be posted to counterparties in the event of such downgrades, or the aggregate amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. | ||||||||||||||||||||
Collateral posted by us to third parties for derivative transactions was $3.3 billion and $3.2 billion at December 31, 2014 and 2013, respectively. In the case of collateral posted under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties. Collateral provided to us from third parties for derivative transactions was $1.3 billion and $1.0 billion at December 31, 2014 and 2013, respectively. We generally can repledge or resell collateral posted under derivative transactions that are not subject to clearing. | ||||||||||||||||||||
Offsetting | ||||||||||||||||||||
We have elected to present all derivative receivables and derivative payables, and the related cash collateral received and paid, on a net basis on our Consolidated Balance Sheets when a legally enforceable ISDA Master Agreement exists between us and our derivative counterparty. An ISDA Master Agreement is an agreement between two counterparties, which may have multiple derivative transactions with each other governed by such agreement, and such ISDA Master Agreement generally provides for the net settlement of all or a specified group of these derivative transactions, as well as pledged collateral, through a single payment, in a single currency, in the event of a default on, or affecting any, one derivative transaction or a termination event affecting all, or a specified group of, derivative transactions. | ||||||||||||||||||||
Hedge Accounting | ||||||||||||||||||||
We designated certain derivatives entered into by GCM with third parties as fair value hedges of available-for-sale investment securities held by our insurance subsidiaries. The fair value hedges include foreign currency forwards designated as hedges of the change in fair value of foreign currency denominated available-for-sale securities attributable to changes in foreign exchange rates. We previously designated certain interest rate swaps entered into by GCM with third parties as cash flow hedges of certain floating rate debt issued by ILFC, specifically to hedge the changes in cash flows on floating rate debt attributable to changes in the benchmark interest rate. We de-designated such derivatives as cash flow hedges in December 2012 in connection with ILFC being classified as held-for-sale. | ||||||||||||||||||||
We use foreign currency denominated debt and cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non-U.S. dollar functional currency foreign subsidiaries. We assess the hedge effectiveness and measure the amount of ineffectiveness for these hedge relationships based on changes in spot exchange rates. For the years ended December 31, 2014, 2013, and 2012 we recognized gain of $156 million, and losses of $38 million and $74 million, respectively, included in Change in foreign currency translation adjustments in Other comprehensive income related to the net investment hedge relationships. | ||||||||||||||||||||
A qualitative methodology is utilized to assess hedge effectiveness for net investment hedges, while regression analysis is employed for all other hedges. | ||||||||||||||||||||
The following table presents the gain (loss) recognized in earnings on our derivative instruments in fair value hedging relationships in the Consolidated Statements of Income: | ||||||||||||||||||||
Gains/(Losses) Recognized in Earnings for: | Including Gains/(Losses) Attributable to: | |||||||||||||||||||
Hedging | Hedged | Hedge | Excluded | |||||||||||||||||
(in millions) | Derivatives(a) | Items | Ineffectiveness | Components | Other(b) | |||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||
Realized capital gains/(losses) | $ | 1 | $ | -2 | $ | - | $ | - | $ | -1 | ||||||||||
Interest credited to policyholder | ||||||||||||||||||||
account balances | - | -1 | - | - | -1 | |||||||||||||||
Other income | - | 43 | - | - | 43 | |||||||||||||||
Gain/(Loss) on extinguishment of debt | - | 164 | - | - | 164 | |||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||
Realized capital gains/(losses) | -129 | 147 | - | 8 | 10 | |||||||||||||||
Interest credited to policyholder | ||||||||||||||||||||
account balances | - | -3 | - | - | -3 | |||||||||||||||
Other income | - | 23 | - | - | 23 | |||||||||||||||
Gain/(Loss) on extinguishment of debt | - | 2 | - | - | 2 | |||||||||||||||
Equity contracts: | ||||||||||||||||||||
Realized capital gains/(losses) | -23 | 22 | - | -1 | - | |||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||
Realized capital gains/(losses) | $ | -5 | $ | 5 | $ | - | $ | - | $ | - | ||||||||||
Interest credited to policyholder | ||||||||||||||||||||
account balances | - | -2 | - | - | -2 | |||||||||||||||
Other income | - | 99 | - | - | 99 | |||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||
Realized capital gains/(losses) | -187 | 204 | - | 17 | - | |||||||||||||||
Policyholder benefits | - | - | - | - | - | |||||||||||||||
Other income | - | - | - | - | - | |||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||
Other income | $ | - | $ | 124 | $ | - | $ | - | $ | 124 | ||||||||||
Foreign exchange contracts: | ||||||||||||||||||||
Realized capital gains/(losses) | -2 | 2 | - | - | - | |||||||||||||||
(a) The amounts presented do not include the periodic net coupon settlements of the derivative contract or the coupon income (expense) related to the hedged item. | ||||||||||||||||||||
(b) Represents accretion/amortization of opening fair value of the hedged item at inception of hedge relationship, amortization of basis adjustment on hedged item following the discontinuation of hedge accounting, and the release of debt basis adjustment following the repurchase of issued debt that was part of previously-discontinued fair value hedge relationship. | ||||||||||||||||||||
The following table presents the effect of our derivative instruments in cash flow hedging relationships in the Consolidated Statements of Income: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Interest rate contracts(a): | ||||||||||||||||||||
Loss recognized in Other comprehensive income on derivatives | $ | - | $ | - | $ | -2 | ||||||||||||||
Loss reclassified from Accumulated other comprehensive income into earnings(b) | - | - | -35 | |||||||||||||||||
(a) Hedge accounting was discontinued in December 2012 in connection with ILFC being classified as held-for-sale. Gains and losses recognized in earnings are recorded in Income from continuing operations. Previously the effective portion of the change in fair value of a derivative qualifying as a cash flow hedge was recorded in Accumulated other comprehensive income until earnings were affected by the variability of cash flows in the hedged item. Gains and losses reclassified from Accumulated other comprehensive income were previously recorded in Other income. Gains or losses recognized in earnings on derivatives for the ineffective portion were previously recorded in Net realized capital gains (losses). | ||||||||||||||||||||
(b) Includes $19 million for the year ended December 2012, representing the reclassification from Accumulated other comprehensive income into earnings following the discontinuation of cash flow hedges of ILFC debt. | ||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||
The following table presents the effect of our derivative instruments not designated as hedging instruments in the Consolidated Statements of Income: | ||||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Years Ended December 31, | Recognized in Earnings | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
By Derivative Type: | ||||||||||||||||||||
Interest rate contracts(a) | $ | 847 | $ | -331 | $ | -241 | ||||||||||||||
Foreign exchange contracts | 309 | 41 | 96 | |||||||||||||||||
Equity contracts(b) | -1,111 | 664 | -644 | |||||||||||||||||
Commodity contracts | -1 | -4 | -1 | |||||||||||||||||
Credit contracts | 263 | 567 | 641 | |||||||||||||||||
Other contracts | 192 | 85 | 6 | |||||||||||||||||
Total | $ | 499 | $ | 1,022 | $ | -143 | ||||||||||||||
By Classification: | ||||||||||||||||||||
Net investment income | 102 | 28 | 5 | |||||||||||||||||
Net realized capital gains (losses) | -219 | 257 | -516 | |||||||||||||||||
Other income | 599 | 750 | 368 | |||||||||||||||||
Policyholder benefits and losses incurred | 17 | -13 | - | |||||||||||||||||
Total | $ | 499 | $ | 1,022 | $ | -143 | ||||||||||||||
(a) Includes cross currency swaps. | ||||||||||||||||||||
(b) Includes embedded derivative gains (losses) of $(837) million, $1.2 billion and $(170) million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
Global Capital Markets Derivatives | ||||||||||||||||||||
Derivative transactions between AIG and its subsidiaries and third parties are generally centralized through GCM, specifically AIG Markets. The derivatives portfolio of AIG Markets consists primarily of interest rate and currency derivatives and also includes legacy credit derivatives that have been novated from AIGFP. AIGFP also enters into derivatives to mitigate market risk in its exposures (interest rates, currencies, credit, commodities and equities) arising from its portfolio of remaining transactions. | ||||||||||||||||||||
GCM follows a policy of minimizing interest rate, currency, commodity, and equity risks associated with investment securities by entering into offsetting positions, thereby offsetting a significant portion of the unrealized appreciation and depreciation. | ||||||||||||||||||||
Super Senior Credit Default Swaps | ||||||||||||||||||||
Credit default swap transactions were entered into by AIGFP with the intention of earning revenue on credit exposure. In the majority of these transactions, we sold credit protection on a designated portfolio of loans or debt securities. Generally, such credit protection was provided on a “second loss” basis, meaning we would incur credit losses only after a shortfall of principal and/or interest, or other credit events, in respect of the protected loans and debt securities, exceeded a specified threshold amount or level of “first losses.” | ||||||||||||||||||||
The following table presents the net notional amount (net of all structural subordination below the covered tranches), fair value of derivative liability before the effects of counterparty netting adjustments and offsetting cash collateral and unrealized market valuation gain of the super senior credit default swap portfolio by asset class: | ||||||||||||||||||||
Fair Value of | Unrealized Market Valuation | |||||||||||||||||||
Net Notional Amount at | Derivative Liability at | Gain for the Years Ended | ||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Arbitrage: | ||||||||||||||||||||
Multi-sector CDOs(a) | $ | 2,619 | $ | 3,257 | $ | 947 | $ | 1,249 | $ | 235 | $ | 518 | ||||||||
Corporate debt/CLOs(b)(c) | 2,480 | 11,832 | 7 | 28 | 21 | 32 | ||||||||||||||
Total | $ | 5,099 | $ | 15,089 | $ | 954 | $ | 1,277 | $ | 256 | $ | 550 | ||||||||
(a) During 2014, we paid $67 million to counterparties with respect to multi-sector CDOs, which was previously included in the fair value of the derivative liability as an unrealized market valuation loss. Collateral postings with regards to multi-sector CDOs were $852 million and $1.1 billion at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||
(b) Corporate debt/Collateralized Loan Obligations (CLOs) include $555 million and $1.0 billion in net notional amount of credit default swaps written on the super senior tranches of CLOs at December 31, 2014 and 2013, respectively. Collateral postings with regards to corporate debt/CLOs were $147 million and $353 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||
(c) On July 17, 2014, AIGFP terminated Corporate Debt Super Senior CDSs with a notional amount of $8.8 billion. | ||||||||||||||||||||
The expected weighted average maturity of the super senior credit derivative portfolios as of December 31, 2014 was five years for the multi-sector CDO arbitrage portfolio and three years for the corporate debt/CLO portfolio. | ||||||||||||||||||||
Because of long-term maturities of the CDSs in the arbitrage portfolio, we are unable to make reasonable estimates of the periods during which any payments would be made. However, the net notional amount represents the maximum exposure to loss on the super senior credit default swap portfolio. | ||||||||||||||||||||
Written Single Name Credit Default Swaps | ||||||||||||||||||||
We have legacy credit default swap contracts referencing single-name exposures written on corporate, index and asset-backed credits with the intention of earning spread income on credit exposure. Some of these transactions were entered into as part of a long-short strategy to earn the net spread between CDSs written and purchased. At December 31, 2014 and 2013, the net notional amounts of these written CDS contracts were $190 million and $373 million, respectively, including ABS CDS transactions purchased from a liquidated multi-sector super senior CDS transaction. These exposures were partially hedged by purchasing offsetting CDS contracts of $5 million and $50 million in net notional amounts at December 31, 2014 and 2013, respectively. The net unhedged positions of $185 million and $323 million at December 31, 2014 and 2013, respectively, represent the maximum exposure to loss on these CDS contracts. The average maturity of the written CDS contracts was two years and three years at December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013, the fair values of derivative liabilities (which represents the carrying amount) of the portfolio of CDS was $25 million and $32 million, respectively. | ||||||||||||||||||||
Upon a triggering event (e.g., a default) with respect to the underlying reference obligations, settlement is generally effected through the payment of the notional amount of the contract to the counterparty in exchange for the related principal amount of securities issued by the underlying credit obligor (physical settlement) or, in some cases, payment of an amount associated with the value of the notional amount of the reference obligations through a market quotation process (cash settlement). | ||||||||||||||||||||
These CDS contracts were written under ISDA Master Agreements. The majority of these ISDA Master Agreements include credit support annexes (CSAs) that provide for collateral postings that may vary at various ratings and threshold levels. At December 31, 2014 and 2013, net collateral posted by us under these contracts was $30 million and $38 million, respectively, prior to offsets for other transactions. | ||||||||||||||||||||
All Other Derivatives | ||||||||||||||||||||
Our businesses, other than GCM, also use derivatives and other instruments as part of their financial risk management. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with embedded derivatives contained in insurance contract liabilities, fixed maturity securities, outstanding medium- and long-term notes as well as other interest rate sensitive assets and liabilities. Foreign exchange derivatives (principally foreign exchange forwards and options) are used to economically mitigate risk associated with non-U.S. dollar denominated debt, net capital exposures, and foreign currency transactions. Equity derivatives are used to mitigate financial risk embedded in certain insurance liabilities. The derivatives are effective economic hedges of the exposures that they are meant to offset. | ||||||||||||||||||||
In addition to hedging activities, we also enter into derivative instruments with respect to investment operations, which include, among other things, credit default swaps and purchasing investments with embedded derivatives, such as equity-linked notes and convertible bonds. | ||||||||||||||||||||
Credit Risk-Related Contingent Features | ||||||||||||||||||||
The aggregate fair value of our derivative instruments that contain credit risk-related contingent features that were in a net liability position at December 31, 2014 and 2013, was approximately $2.5 billion and $2.6 billion, respectively. The aggregate fair value of assets posted as collateral under these contracts at December 31, 2014 and 2013, was $2.7 billion and $3.1 billion, respectively. | ||||||||||||||||||||
We estimate that at December 31, 2014, based on our outstanding financial derivative transactions, a one-notch downgrade of our long-term senior debt ratings to BBB+ by Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. (S&P), would permit counterparties to make additional collateral calls and permit certain counterparties to elect early termination of contracts, resulting in a negligible amount of corresponding collateral postings and termination payments; a one-notch downgrade to Baa2 by Moody’s Investors’ Service, Inc. (Moody’s) and an additional one-notch downgrade to BBB by S&P would result in approximately $46 million in additional collateral postings and termination payments, and a further one-notch downgrade to Baa3 by Moody’s and BBB- by S&P would result in approximately $153 million in additional collateral postings and termination payments. | ||||||||||||||||||||
Additional collateral postings upon downgrade are estimated based on the factors in the individual collateral posting provisions of the CSA with each counterparty and current exposure as of December 31, 2014. Factors considered in estimating the termination payments upon downgrade include current market conditions, the complexity of the derivative transactions, historical termination experience and other observable market events such as bankruptcy and downgrade events that have occurred at other companies. Our estimates are also based on the assumption that counterparties will terminate based on their net exposure to us. The actual termination payments could significantly differ from our estimates given market conditions at the time of downgrade and the level of uncertainty in estimating both the number of counterparties who may elect to exercise their right to terminate and the payment that may be triggered in connection with any such exercise. | ||||||||||||||||||||
Hybrid Securities with Embedded Credit Derivatives | ||||||||||||||||||||
We invest in hybrid securities (such as credit-linked notes) with the intent of generating income, and not specifically to acquire exposure to embedded derivative risk. As is the case with our other investments in RMBS, CMBS, CDOs and ABS, our investments in these hybrid securities are exposed to losses only up to the amount of our initial investment in the hybrid security. Other than our initial investment in the hybrid securities, we have no further obligation to make payments on the embedded credit derivatives in the related hybrid securities. | ||||||||||||||||||||
We elect to account for our investments in these hybrid securities with embedded written credit derivatives at fair value, with changes in fair value recognized in Net investment income and Other income. Our investments in these hybrid securities are reported as Other bond securities in the Consolidated Balance Sheets. The fair values of these hybrid securities were $6.1 billion and $6.4 billion at December 31, 2014 and 2013, respectively. These securities have par amounts of $12.3 billion and $13.4 billion at December 31, 2014 and 2013, respectively, and both have remaining stated maturity dates that extend to 2052. |
GOODWILL
GOODWILL | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill Disclosure | |||||||||
GOODWILL | 12. GOODWILL | ||||||||
Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is tested for impairment annually or more frequently if circumstances indicate an impairment may have occurred. We assess goodwill for impairment at one level below our reportable segments. At December 31, 2014, in consideration of the 2014 segment changes, our reporting units with goodwill are Commercial Insurance - Property Casualty, Consumer Insurance - Personal Insurance, and Consumer Insurance - Life. When a business is transferred from one reporting unit to another, as occurred with the transfer of a portion of the Consumer Insurance - Personal Insurance to Consumer Insurance – Life, as part of the 2014 segment changes, goodwill at the original reporting unit is allocated among reporting units based on the fair value of business transferred, relative to business retained by a reporting unit. | |||||||||
The impairment assessment involves an option to first assess qualitative factors to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not performed, or after assessing the totality of the events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the impairment assessment involves a two-step process in which a quantitative assessment for potential impairment is performed. | |||||||||
If the qualitative test is not performed or if the test indicates a potential impairment is present, we estimate the fair value of each reporting unit and compare the estimated fair value with the carrying amount of the reporting unit, including allocated goodwill. The estimate of a reporting unit’s fair value involves management judgment and is based on one or a combination of approaches including discounted expected future cash flows, market-based earnings multiples of the unit’s peer companies, external appraisals or, in the case of reporting units being considered for sale, third-party indications of fair value, if available. We consider one or more of these estimates when determining the fair value of a reporting unit to be used in the impairment test. | |||||||||
If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill is not impaired. If the carrying value of a reporting unit exceeds its estimated fair value, goodwill associated with that reporting unit potentially is impaired. The amount of impairment, if any, is measured as the excess of the carrying value of the goodwill over the implied fair value of the goodwill. The implied fair value of the goodwill is measured as the excess of the fair value of the reporting unit over the amounts that would be assigned to the reporting unit’s assets and liabilities in a hypothetical business combination. An impairment charge is recognized in earnings to the extent of the excess of carrying value over fair value. | |||||||||
Goodwill was not impaired at December 31, 2014 based on the results of the goodwill impairment test. | |||||||||
The following table presents the changes in goodwill by reportable segment: | |||||||||
(in millions) | Commercial | Consumer | Other | Total | |||||
Balance at January 1, 2012: | |||||||||
Goodwill - gross | $ | 2,325 | $ | 2,502 | $ | 23 | $ | 4,850 | |
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | 1,059 | 291 | 23 | 1,373 | |||||
Increase (decrease) due to: | |||||||||
Acquisition | 119 | - | - | 119 | |||||
Other | - | - | -23 | -23 | |||||
Balance at December 31, 2012: | |||||||||
Goodwill - gross | 2,444 | 2,502 | - | 4,946 | |||||
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | 1,178 | 291 | - | 1,469 | |||||
Increase (decrease) due to: | |||||||||
Other | 6 | - | - | 6 | |||||
Balance at December 31, 2013: | |||||||||
Goodwill - gross | 2,450 | 2,502 | - | 4,952 | |||||
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | 1,184 | 291 | - | 1,475 | |||||
Increase (decrease) due to: | |||||||||
Acquisition | - | 28 | - | 28 | |||||
Other | -49 | - | - | -49 | |||||
Balance at December 31, 2014: | |||||||||
Goodwill - gross | 2,401 | 2,530 | - | 4,931 | |||||
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | $ | 1,135 | $ | 319 | $ | - | $ | 1,454 |
INSURANCE_LIABILITIES
INSURANCE LIABILITIES | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | |||||||
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | 13. INSURANCE LIABILITIES | ||||||
Liability for Unpaid Losses and Loss Adjustment Expenses | |||||||
The liability for unpaid losses and loss adjustment expenses represents the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and claim adjustments expenses, less applicable discount for future investment income. We continually review and update the methods used to determine loss reserve estimates and to establish the resulting reserves. Any adjustments resulting from this review are reflected currently in pre-tax income. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be recognized and confirmed. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as favorable development. | |||||||
Our gross loss reserves before reinsurance and discount are net of contractual deductible recoverable amounts due from policyholders of approximately $12.4 billion and $12.0 billion at December 31, 2014 and 2013, respectively. These recoverable amounts are related to certain policies with high deductibles (primarily for U.S. commercial casualty business) where we manage and pay the entire claim on behalf of the insured and are reimbursed by the insured for the deductible portion of the claim. At December 31, 2014 and 2013, we held collateral totaling $9.4 billion and $9.0 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and trust agreements. | |||||||
The following table presents the reconciliation of activity in the Liability for unpaid losses and loss adjustment expenses: | |||||||
Years Ended December 31, | |||||||
(in millions) | 2014 | 2013 | 2012 | ||||
Liability for unpaid losses and loss adjustment expenses, beginning of year | $ | 81,547 | $ | 87,991 | $ | 91,145 | |
Reinsurance recoverable | -17,231 | -19,209 | -20,320 | ||||
Net liability for unpaid losses and loss adjustment expenses, beginning of year | 64,316 | 68,782 | 70,825 | ||||
Foreign exchange effect(a) | -1,061 | -617 | -90 | ||||
Dispositions | - | -79 | -11 | ||||
Changes in net loss reserves due to retroactive asbestos reinsurance transaction | 141 | 22 | 90 | ||||
Total | 63,396 | 68,108 | 70,814 | ||||
Losses and loss adjustment expenses incurred: | |||||||
Current year | 21,279 | 22,171 | 25,385 | ||||
Prior years, excluding discount(b) | 703 | 557 | 421 | ||||
Prior years, discount charge (benefit) | 478 | -309 | -63 | ||||
Total | 22,460 | 22,419 | 25,743 | ||||
Losses and loss adjustment expenses paid(c): | |||||||
Current year | 6,358 | 7,431 | 8,450 | ||||
Prior years | 17,886 | 18,780 | 19,325 | ||||
Total | 24,244 | 26,211 | 27,775 | ||||
Balance, end of year: | |||||||
Net liability for unpaid losses and loss adjustment expenses | 61,612 | 64,316 | 68,782 | ||||
Reinsurance recoverable | 15,648 | 17,231 | 19,209 | ||||
Total | $ | 77,260 | $ | 81,547 | $ | 87,991 | |
(a) For the 2012 amounts, $847 million was reclassified from "Foreign exchange effect" to "Losses and loss adjustment expenses paid (current year)". The impact of this reclassification was a decrease of $847 million for foreign exchange and loss expenses paid (current year), with no income statement or balance sheet impact. | |||||||
(b) In 2014, included $545 million, $381 million, $(195) million, $135 million and $109 million related to primary casualty, environmental and asbestos, natural catastrophes, financial lines and healthcare, respectively. In 2013, included $(144) million, $269 million, $498 million and $(54) million related to excess casualty, environmental and pollution, primary casualty and healthcare, respectively. In 2012, includes $157 million, $200 million, $531 million and $68 million related to excess casualty, environmental and pollution, primary casualty and healthcare, respectively. | |||||||
(c) Includes amounts related to dispositions through the date of disposition. | |||||||
The net adverse development includes loss-sensitive business, for which we recognized $105 million, $89 million and $54 million loss-sensitive premium adjustments for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||
Discounting of Reserves | |||||||
At December 31, 2014, the liability for unpaid losses and loss adjustment expenses reflects a net loss reserve discount of $3.1 billion, including tabular and non-tabular calculations based upon the following assumptions: | |||||||
Certain asbestos business that was written by Non-Life Insurance Companies is discounted, when allowed by the regulator and when payments are fixed and determinable, based on the investment yields of the companies and the payout pattern for this business. | |||||||
The tabular workers’ compensation discount is calculated based on a 3.5 percent interest rate and the 1999 U.S. Decennial Life Table. | |||||||
The non-tabular workers’ compensation discount is calculated separately for companies domiciled in New York and Pennsylvania, and follows the statutory regulations (prescribed or permitted) for each state. For New York companies, the discount is based on a five percent interest rate and the companies’ own payout patterns. In 2012, for Pennsylvania companies, the statute has specified discount factors for accident years 2001 and prior, which are based on a six percent interest rate and an industry payout pattern. For accident years 2002 and subsequent, the discount is based on the payout patterns and investment yields of the companies. | |||||||
Effective for the fourth quarter of 2013, our Pennsylvania regulator approved use of a consistent discount rate (U.S. Treasury rate plus a liquidity premium) to all of our workers’ compensation reserves in our Pennsylvania-domiciled companies, as well as our use of updated payout patterns specific to our primary and excess workers compensation portfolios. Prior to this change, workers’ compensation reserves held by a Pennsylvania-domiciled insurer were discounted as follows: i) For loss reserves associated with accident year 2001 and prior accident years, a prescribed discount factor based on a rate of 6 percent and industry payout patterns, were applied, ii) For loss reserves associated with accident year 2002 and subsequent accident years, a rate of 4.25 percent and our own payout patterns were applied; and iii) For a portion of loss reserves comprising excess workers' compensation reserves that were assumed into a Pennsylvania-domiciled insurer from New York-domiciled insurers during 2011, we applied New York discounting rules, which include a prescribed rate of five percent on case reserves only (no discounting of IBNR reserves). | |||||||
In the fourth quarter of 2014, our Pennsylvania and Delaware regulators approved an updated discount rate that we applied to our workers’ compensation loss reserves for the legal entities domiciled in those states. | |||||||
The discount consists of the following: $852 million of tabular discount for workers’ compensation in the domestic operations of Non-Life Insurance Companies and $2.2 billion of non-tabular discount for workers’ compensation in the domestic operations of Non-Life Insurance Companies; and $11 million — non-tabular discount for asbestos for Non-Life Insurance Companies. | |||||||
Future Policy Benefits | |||||||
Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements whereby a claimant has agreed to settle a general insurance claim in exchange for fixed payments over a fixed determinable period of time with a life contingency feature. | |||||||
Future policy benefits also include certain guaranteed benefits of variable annuity products that are not considered embedded derivatives, primarily guaranteed minimum death benefits. See Note 14 for additional information on guaranteed death benefits. | |||||||
The liability for long-duration future policy benefits has been established including assumptions for interest rates which vary by year of issuance and product, and range from approximately 1 percent to 12 percent. Mortality and surrender rate assumptions are generally based on actual experience when the liability is established. | |||||||
For universal life policies with secondary guarantees, we recognize a future policy benefit reserve, in addition to policyholder contract deposits, based on a benefit ratio of (a) the present value of total expected payments, in excess of the account value, over the life of the contract, divided by (b) the present value of total expected assessments over the life of the contract. For universal life policies without secondary guarantees, for which profits followed by losses are first expected after contract inception, we establish future policy benefit reserves, in addition to policyholder contract deposits, so that expected future losses are recognized in proportion to the emergence of profits in the earlier (profitable) years. | |||||||
Policyholder Contract Deposits | |||||||
The liability for Policyholder contract deposits is primarily recorded at accumulated value (deposits received and net transfers from separate accounts, plus accrued interest credited at rates ranging from 0.3% to 8.4% at December 31, 2014, less withdrawals and assessed fees). Deposits collected on investment-oriented products are not reflected as revenues, because they are recorded directly to Policyholder contract deposits upon receipt. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenues. | |||||||
In addition to liabilities for universal life, fixed annuities, fixed options within variable annuities, annuities without life contingencies, funding agreements and GICs, policyholder contract deposits also include our liability for (a) certain guaranteed benefits and indexed features accounted for as embedded derivatives at fair value, (b) annuities issued in a structured settlement arrangement with no life contingency and (c) certain contracts we have elected to account for at fair value. See Note 14 herein for additional information on guaranteed benefits accounted for as embedded derivatives. | |||||||
Under a funding agreement-backed notes issuance program, an unaffiliated, non-consolidated statutory trust issues medium-term notes to investors, which are secured by GICs issued to the trust by one of our Life Insurance Companies through our Institutional Markets operating segment. During the year ended December 31, 2014, a $450 million GIC was issued in conjunction with the funding agreement-backed notes program. | |||||||
The following table presents Policyholder contract deposits of the domestic Life Insurance Companies by product line: | |||||||
At December 31, | |||||||
(in millions) | 2014 | 2013 | |||||
Policyholder contract deposits: | |||||||
Fixed Annuities | $ | 53,370 | $ | 54,515 | |||
Group Retirement | 37,693 | 37,695 | |||||
Life | 13,717 | 13,644 | |||||
Retirement Income Solutions | 10,040 | 6,729 | |||||
Institutional Markets | 9,793 | 9,433 | |||||
Total Policyholder contract deposits | $ | 124,613 | $ | 122,016 | |||
Other Policyholder Funds | |||||||
Other policyholder funds include unearned revenue reserves (URR). URR consists of front-end loads on investment-oriented contracts, representing those policy loads that are non-level and typically higher in initial policy years than in later policy years. URR for investment-oriented contracts are generally deferred and amortized, with interest, in relation to the incidence of estimated gross profits (EGPs) to be realized over the estimated lives of the contracts and are subject to the same adjustments due to changes in the assumptions underlying EGPs as DAC. Amortization of URR is recorded in Policy Fees. | |||||||
Other policyholder funds also include provisions for future dividends to participating policyholders, accrued in accordance with all applicable regulatory or contractual provisions. Participating life business represented approximately 1.9 percent of the gross insurance in force at December 31, 2014 and 3.7 percent of gross Premiums and other considerations in 2014. The amount of annual dividends to be paid is approved locally by the boards of directors of the insurance companies. Provisions for future dividend payments are computed by jurisdiction, reflecting local regulations. The portions of current and prior net income and of current unrealized appreciation of investments that can inure to our benefit are restricted in some cases by the insurance contracts and by the local insurance regulations of the jurisdictions in which the policies are in force. | |||||||
Certain products are subject to experience adjustments. These include group life and group medical products, credit life contracts, accident and health insurance contracts/riders attached to life policies and, to a limited extent, reinsurance agreements with other direct insurers. Ultimate premiums from these contracts are estimated and recognized as revenue with the unearned portions of the premiums recorded as liabilities in Other policyholder funds. Experience adjustments vary according to the type of contract and the territory in which the policy is in force and are subject to local regulatory guidance. |
VARIABLE_LIFE_AND_ANNUITY_CONT
VARIABLE LIFE AND ANNUITY CONTRACTS | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
VARIABLE LIFE AND ANNUITY CONTRACTS | ||||||||||
VARIABLE LIFE AND ANNUITY CONTRACTS | 14. VARIABLE LIFE AND ANNUITY CONTRACTS | |||||||||
We report variable contracts within the separate accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder and the separate account meets additional accounting criteria to qualify for separate account treatment. The assets supporting the variable portion of variable annuity and variable universal life contracts that qualify for separate account treatment are carried at fair value and reported as separate account assets, with an equivalent summary total reported as separate account liabilities. | ||||||||||
Policy values for variable products and investment contracts are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units in the separate accounts, plus any liabilities for guaranteed minimum death benefits or guaranteed minimum withdrawal benefits included in Future policy benefits or Policyholder contract deposits, respectively. | ||||||||||
Amounts assessed against the contract holders for mortality, administrative and other services are included in revenue. Net investment income, net investment gains and losses, changes in fair value of assets, and policyholder account deposits and withdrawals related to separate accounts are excluded from the Consolidated Statements of Income, Comprehensive Income (Loss) and Cash Flows. | ||||||||||
Variable annuity contracts may include certain contractually guaranteed benefits to the contract holder. These guaranteed features include guaranteed minimum death benefits (GMDB) that are payable in the event of death, and living benefits that are payable in the event of annuitization, or, in other instances, at specified dates during the accumulation period. Living benefits include guaranteed minimum income benefits (GMIB), guaranteed minimum withdrawal benefits (GMWB) and guaranteed minimum account value benefits (GMAV). A variable annuity contract may include more than one type of guaranteed benefit feature; for example, it may have both a GMDB and a GMWB. However, a policyholder can only receive payout from one guaranteed feature on a contract containing a death benefit and a living benefit, i.e. the features are mutually exclusive. A policyholder cannot purchase more than one living benefit on one contract. The net amount at risk for each feature is calculated irrespective of the existence of other features; as a result, the net amount at risk for each feature is not additive to that of other features. | ||||||||||
Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: | ||||||||||
At December 31, | ||||||||||
(in millions) | 2014 | 2013 | ||||||||
Equity funds | $ | 40,811 | $ | 40,497 | ||||||
Bond funds | 7,566 | 7,458 | ||||||||
Balanced funds | 22,354 | 16,384 | ||||||||
Money market funds | 797 | 867 | ||||||||
Total | $ | 71,528 | $ | 65,206 | ||||||
GMDB and GMIB | ||||||||||
Depending on the contract, the GMDB feature may provide a death benefit of either (a) total deposits made to the contract less any partial withdrawals plus a minimum return (and in rare instances, no minimum return) or (b) the highest contract value attained, typically on any anniversary date minus any subsequent withdrawals following the contract anniversary. GMIB guarantees a minimum level of periodic income payments upon annuitization. GMDB is our most widely offered benefit; our contracts also include GMIB to a lesser extent. | ||||||||||
The liabilities for GMDB and GMIB, which are recorded in Future policyholder benefits, represent the expected value of benefits in excess of the projected account value, with the excess recognized ratably over the accumulation period based on total expected assessments, through Policyholder benefits and losses incurred. The net amount at risk for GMDB represents the amount of benefits in excess of account value if death claims were filed on all contracts on the balance sheet date. | ||||||||||
The following table presents details concerning our GMDB exposures, by benefit type: | ||||||||||
At December 31, | 2014 | 2013 | ||||||||
Net Deposits | Net Deposits | |||||||||
Plus a Minimum | Highest Contract | Plus a Minimum | Highest Contract | |||||||
(dollars in billions) | Return | Value Attained | Return | Value Attained | ||||||
Account value | $ | 85 | $ | 17 | $ | 78 | $ | 15 | ||
Net amount at risk | 1 | 1 | 1 | 1 | ||||||
Average attained age of contract holders by product | 62 | 68 | 66 | 70 | ||||||
Range of guaranteed minimum return rates | 0%-5% | 0-5% | ||||||||
The following summarizes GMDB and GMIB liabilities related to variable annuity contracts: | ||||||||||
Years Ended December 31, | ||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||
Balance, beginning of year | $ | 394 | $ | 413 | $ | 445 | ||||
Reserve increase | 93 | 32 | 43 | |||||||
Benefits paid | -67 | -51 | -75 | |||||||
Balance, end of year | $ | 420 | $ | 394 | $ | 413 | ||||
We regularly evaluate estimates used to determine the GMDB liability and adjust the additional liability balance, with a related charge or credit to Policyholder benefits and losses incurred, if actual experience or other evidence suggests that earlier assumptions should be revised. | ||||||||||
The following assumptions and methodology were used to determine the GMDB liability at December 31, 2014: | ||||||||||
Data used was up to 1,000 stochastically generated investment performance scenarios. | ||||||||||
Mean investment performance assumption was 8.5 percent. | ||||||||||
Volatility assumption was 16 percent. | ||||||||||
For certain products, mortality was assumed to be 85 percent of the 1983 variable annuity minimum guaranteed death benefit table, adjusted for recent experience. For other products, mortality was assumed to be 92 percent to 139 percent of the 2012 individual annuity mortality table. | ||||||||||
Lapse rates vary by contract type and duration and ranged zero percent to 37 percent. | ||||||||||
The discount rate ranged from 3.75 percent to 10 percent and is based on the growth rate assumption for the underlying contracts in effect at the time of policy issuance. | ||||||||||
GMWB and GMAV | ||||||||||
Certain of our variable annuity contracts contain optional GMWB benefits and, to a lesser extent, GMAV benefits, which are not currently offered. With a GMWB, the contract holder can monetize the excess of the guaranteed amount over the account value of the contract only through a series of withdrawals that do not exceed a specific percentage per year of the guaranteed amount. If, after the series of withdrawals, the account value is exhausted, the contract holder will receive a series of annuity payments equal to the remaining guaranteed amount, and, for lifetime GMWB products, the annuity payments continue as long as the covered person(s) is living. With a GMAV benefit, the contract holder can monetize the excess of the guaranteed amount over the account value of the contract, provided the contract holder persists until the maturity date. | ||||||||||
The liabilities for GMWB and GMAV, which are recorded in Policyholder contract deposits, are accounted for as embedded derivatives measured at fair value, with changes in the fair value of the liabilities recorded in Other net realized capital gains (losses). The fair value of these embedded derivatives was a net liability of $957 million at December 31, 2014 and a net asset of $37 million at December 31, 2013. See Note 5 herein for discussion of the fair value measurement of guaranteed benefits that are accounted for as embedded derivatives. We had account values subject to GMWB and GMAV that totaled $35 billion and $28.6 billion at December 31, 2014 and 2013, respectively. The net amount at risk for GMWB represents the present value of minimum guaranteed withdrawal payments, in accordance with contract terms, in excess of account value, assuming no lapses. The net amount at risk for GMAV represents the present value of minimum guaranteed account value in excess of the current account balance, assuming no lapses. The net amount at risk related to these guarantees was $414 million and $63 million at December 31, 2014 and 2013, respectively. The increase in 2014 was primarily due to a decrease in interest rates. We use derivative instruments and other financial instruments to mitigate a portion of our exposure that arises from GMWB and GMAV benefits. | ||||||||||
See Note 1 for discussion of presentation changes for policy fees that are related primarily to GMWB embedded derivatives. |
DEBT
DEBT | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
DEBT | ||||||||||||||||
DEBT | 15. DEBT | |||||||||||||||
Our long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts, hedge accounting valuation adjustments and fair value adjustments, when applicable. The interest rates presented in the following table reflect the range of contractual rates in effect at December 31, 2014, including fixed and variable rate issuances. | ||||||||||||||||
The following table lists our total debt outstanding at December 31, 2014 and 2013. The interest rates presented in the following table are the range of contractual rates in effect at December 31, 2014, including fixed and variable-rates: | ||||||||||||||||
Balance at | Balance at | |||||||||||||||
At December 31, 2014 | Range of | Maturity | December 31, | December 31, | ||||||||||||
(in millions) | Interest Rate(s) | Date(s) | 2014 | 2013 | ||||||||||||
Debt issued or guaranteed by AIG: | ||||||||||||||||
AIG general borrowings: | ||||||||||||||||
Notes and bonds payable | 2.30% - 8.13% | 2015 - 2097 | $ | 15,570 | $ | 14,062 | ||||||||||
Subordinated debt | 2.38% | 2015 | 250 | 250 | ||||||||||||
Junior subordinated debt | 4.88% - 8.63% | 2037 - 2047 | 2,466 | 5,533 | ||||||||||||
Loans and mortgages payable | 9.00% | 2015 | - | 1 | ||||||||||||
AIGLH notes and bonds payable | 6.63% - 7.50% | 2025 - 2029 | 284 | 299 | ||||||||||||
AIGLH junior subordinated debt | 7.57% - 8.50% | 2030 - 2046 | 536 | 1,054 | ||||||||||||
Total AIG general borrowings | 19,106 | 21,199 | ||||||||||||||
AIG/DIB borrowings supported by assets:(a) | ||||||||||||||||
MIP notes payable | 2.28% - 8.59% | 2015 - 2018 | 2,870 | 7,963 | ||||||||||||
Series AIGFP matched notes and bonds payable | 0.10% - 0.24% | 2017 - 2047 | 34 | 3,219 | ||||||||||||
GIAs, at fair value | 0.04% - 8.50% | 2015 - 2047 | 4,648 | 5,530 | ||||||||||||
Notes and bonds payable, at fair value | 0.15% - 10.4% | 2015 - 2049 | 818 | 1,217 | ||||||||||||
Total AIG/DIB borrowings supported by assets | 8,370 | 17,929 | ||||||||||||||
Total debt issued or guaranteed by AIG | 27,476 | 39,128 | ||||||||||||||
Debt not guaranteed by AIG: | ||||||||||||||||
Other subsidiaries notes, bonds, loans and | ||||||||||||||||
mortgages payable | 0.06% - 5.60% | 2015 - 2047 | 58 | 656 | ||||||||||||
Debt of consolidated investments(b) | 0.03% - 9.06% | 2015 - 2061 | 3,683 | 1,909 | ||||||||||||
Total debt not guaranteed by AIG | 3,741 | 2,565 | ||||||||||||||
Total long term debt (c) | $ | 31,217 | $ | 41,693 | ||||||||||||
(a) AIG Parent guarantees all DIB debt, except for MIP notes payable and Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. | ||||||||||||||||
(b) At December 31, 2014, includes debt of consolidated investments held through AIG Global Real Estate Investment Corp., AIG Credit Corp., AIGLH and AIG Property Casualty Inc. of $2.0 billion, $54 million, $1.5 billion and $122 million, respectively. At December 31, 2013, includes debt of consolidated investments held through AIG Global Real Estate Investment Corp., AIG Credit Corp., AIGLH and AIG Property Casualty Inc. of $1.5 billion, $111 million, $696 million and $58 million, respectively. | ||||||||||||||||
(c) At December 31, 2013, excludes $21.4 billion related to ILFC as it is classified as a held-for-sale business. | ||||||||||||||||
The following table presents maturities of long-term debt (including unamortized original issue discount, hedge accounting valuation adjustments and fair value adjustments, when applicable), excluding $3.7 billion in borrowings of debt of consolidated investments: | ||||||||||||||||
31-Dec-14 | Year Ending | |||||||||||||||
(in millions) | Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||
Debt issued or guaranteed by AIG: | ||||||||||||||||
AIG general borrowings: | ||||||||||||||||
Notes and bonds payable | $ | 15,570 | $ | 847 | $ | 1,554 | $ | 510 | $ | 2,407 | $ | 998 | $ | 9,254 | ||
Subordinated debt | 250 | 250 | - | - | - | - | - | |||||||||
Junior subordinated debt | 2,466 | - | - | - | - | - | 2,466 | |||||||||
AIGLH notes and bonds payable | 284 | - | - | - | - | - | 284 | |||||||||
AIGLH junior subordinated debt | 536 | - | - | - | - | - | 536 | |||||||||
Total AIG general borrowings | 19,106 | 1,097 | 1,554 | 510 | 2,407 | 998 | 12,540 | |||||||||
AIG/DIB borrowings supported by assets: | ||||||||||||||||
MIP notes payable | 2,870 | 132 | 366 | 2,019 | 353 | - | - | |||||||||
Series AIGFP matched notes and | ||||||||||||||||
bonds payable | 34 | - | - | 10 | - | - | 24 | |||||||||
GIAs, at fair value | 4,648 | 619 | 165 | 226 | 631 | 180 | 2,827 | |||||||||
Notes and bonds payable, at fair value | 818 | 132 | 168 | 131 | 153 | - | 234 | |||||||||
Total AIG/DIB borrowings supported by assets | 8,370 | 883 | 699 | 2,386 | 1,137 | 180 | 3,085 | |||||||||
Total debt issued or guaranteed by AIG | 27,476 | 1,980 | 2,253 | 2,896 | 3,544 | 1,178 | 15,625 | |||||||||
Other subsidiaries notes, bonds, loans | ||||||||||||||||
and mortgages payable | 58 | 38 | 1 | 1 | 1 | 1 | 16 | |||||||||
Total | $ | 27,534 | $ | 2,018 | $ | 2,254 | $ | 2,897 | $ | 3,545 | $ | 1,179 | $ | 15,641 | ||
Uncollateralized and collateralized notes, bonds, loans and mortgages payable consisted of the following: | ||||||||||||||||
Uncollateralized | Collateralized | |||||||||||||||
At December 31, 2014 | Notes/Bonds/Loans | Loans and | ||||||||||||||
(in millions) | Payable | Mortgages Payable | Total | |||||||||||||
Other subsidiaries notes, bonds, loans and mortgages payable* | 14 | 44 | 58 | |||||||||||||
Total | $ | 14 | $ | 44 | $ | 58 | ||||||||||
* AIG does not guarantee any of these borrowings. | ||||||||||||||||
Junior Subordinated Debt | ||||||||||||||||
In August 2012, we entered into new replacement capital covenants (the New RCCs) for the initial benefit of the holders of our 2.375% Subordinated Notes due 2015 (the Subordinated Notes), in connection with our 5.75% Series A-2 Junior Subordinated Debentures and our 4.875% Series A-3 Junior Subordinated Debentures. We covenanted in each New RCC that, subject to certain exceptions, we would not repay, redeem or purchase, and that none of our subsidiaries would purchase, the applicable series of junior subordinated debentures prior to the scheduled termination date of that New RCC, unless since the date 360 days prior to the date of that repayment, redemption or purchase, we have received a specified amount of net cash proceeds from the sale of common stock or certain other qualifying securities that have certain characteristics that are at least as equity-like as the applicable characteristics of the applicable series of junior subordinated debentures, or we or our subsidiaries have issued a specified amount of common stock in connection with the conversion or exchange of certain convertible or exchangeable securities. In the first quarter of 2013, our obligations under the New RCCs were effectively terminated because one of the termination provisions set forth in the New RCCs was triggered when it was determined that neither series of junior subordinated debentures received equity credit any longer for rating agency purposes. | ||||||||||||||||
In 2014, we repurchased approximately $2.4 billion aggregate principal amount of our 8.175% Series A-6 Junior Subordinated Debentures. | ||||||||||||||||
AIGLH Junior Subordinated Debentures (Formerly, Liabilities Connected To Trust Preferred Stock) | ||||||||||||||||
In connection with our acquisition of AIG Life Holdings, Inc. (AIGLH) in 2001, we entered into arrangements with AIGLH with respect to outstanding AIGLH capital securities. In 1996, AIGLH issued capital securities through a trust to institutional investors and funded the trust with AIGLH junior subordinated debentures issued to the trust with the same terms as the capital securities. | ||||||||||||||||
On July 11, 2013, the AIGLH junior subordinated debentures were distributed to holders of the capital securities, the capital securities were cancelled and the trusts were dissolved. At December 31, 2014, the junior subordinated debentures outstanding consisted of $155 million of 8.5 percent junior subordinated debentures due July 2030, $245 million of 8.125 percent junior subordinated debentures due March 2046 and $136 million of 7.57 percent junior subordinated debentures due December 2045, each guaranteed by AIG Parent. | ||||||||||||||||
Credit Facilities | ||||||||||||||||
The five-year syndicated credit facility that we entered into on June 19, 2014 (the Five-Year Facility) provides for $4.0 billion of unsecured revolving loans and/or standby letters of credit without any limits on the type of borrowings. As of December 31, 2014, a total of $4 billion remains available under the Five-Year Facility. We expect we may draw down on the Five-Year Facility from time to time, and may use the proceeds for general corporate purposes. The Five-Year Facility is summarized in the following table. | ||||||||||||||||
At December 31, 2014 | Available | Effective | ||||||||||||||
(in millions) | Size | Amount | Expiration | Date | ||||||||||||
Five-Year Syndicated Credit Facility | $ | 4,000 | $ | 4,000 | Jun-19 | 6/19/14 |
CONTINGENCIES_COMMITMENTS_AND_
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 12 Months Ended | ||
Dec. 31, 2014 | |||
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |||
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 16. CONTINGENCIES, COMMITMENTS AND GUARANTEES | ||
In the normal course of business, various contingent liabilities and commitments are entered into by AIG and our subsidiaries. In addition, AIG Parent guarantees various obligations of certain subsidiaries. | |||
Although AIG cannot currently quantify its ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on AIG’s consolidated financial condition or its consolidated results of operations or consolidated cash flows for an individual reporting period. | |||
Legal Contingencies | |||
Overview. In the normal course of business, AIG and our subsidiaries are, like others in the insurance and financial services industries in general, subject to litigation, including claims for punitive damages. In our insurance and mortgage guaranty operations, litigation arising from claims settlement activities is generally considered in the establishment of our liability for unpaid losses and loss adjustment expenses. However, the potential for increasing jury awards and settlements makes it difficult to assess the ultimate outcome of such litigation. AIG is also subject to derivative, class action and other claims asserted by its shareholders and others alleging, among other things, breach of fiduciary duties by its directors and officers and violations of insurance laws and regulations, as well as federal and state securities laws. In the case of any derivative action brought on behalf of AIG, any recovery would accrue to the benefit of AIG. | |||
Various regulatory and governmental agencies have been reviewing certain transactions and practices of AIG and our subsidiaries in connection with industry-wide and other inquiries into, among other matters, certain business practices of current and former operating insurance subsidiaries. We have cooperated, and will continue to cooperate, in producing documents and other information in response to subpoenas and other requests. | |||
AIG’s Subprime Exposure, AIGFP Credit Default Swap Portfolio and Related Matters | |||
AIG, AIGFP and certain directors and officers of AIG, AIGFP and other AIG subsidiaries have been named in various actions relating to our exposure to the U.S. residential subprime mortgage market, unrealized market valuation losses on AIGFP’s super senior credit default swap portfolio, losses and liquidity constraints relating to our securities lending program and related disclosure and other matters (Subprime Exposure Issues). | |||
Consolidated 2008 Securities Litigation. Between May 21, 2008 and January 15, 2009, eight purported securities class action complaints were filed against AIG and certain directors and officers of AIG and AIGFP, AIG’s outside auditors, and the underwriters of various securities offerings in the United States District Court for the Southern District of New York (the Southern District of New York), alleging claims under the Securities Exchange Act of 1934, as amended (the Exchange Act), or claims under the Securities Act of 1933, as amended (the Securities Act). On March 20, 2009, the Court consolidated all eight of the purported securities class actions as In re American International Group, Inc. 2008 Securities Litigation (the Consolidated 2008 Securities Litigation). | |||
On May 19, 2009, the lead plaintiff in the Consolidated 2008 Securities Litigation filed a consolidated complaint on behalf of purchasers of AIG Common Stock during the alleged class period of March 16, 2006 through September 16, 2008, and on behalf of purchasers of various AIG securities offered pursuant to AIG’s shelf registration statements. The consolidated complaint alleges that defendants made statements during the class period in press releases, AIG’s quarterly and year-end filings, during conference calls, and in various registration statements and prospectuses in connection with the various offerings that were materially false and misleading and that artificially inflated the price of AIG Common Stock. The alleged false and misleading statements relate to, among other things, the Subprime Exposure Issues. The consolidated complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act and Sections 11, 12(a)(2), and 15 of the Securities Act. On August 5, 2009, defendants filed motions to dismiss the consolidated complaint, and on September 27, 2010, the Court denied the motions to dismiss. | |||
On April 26, 2013, the Court dismissed all claims against the outside auditors in their entirety, and it also reduced the scope of the Securities Act claims against AIG and defendants other than the outside auditors. | |||
On July 15, 2014, lead plaintiffs and all defendants except AIG’s outside auditors accepted a mediator’s proposal to settle the Consolidated 2008 Securities Litigation for a cash payment by AIG of $960 million (the AIG Settlement). On August 1, 2014, lead plaintiff and AIG’s outside auditors accepted a mediator’s proposal to resolve the Consolidated 2008 Securities Litigation for a cash payment by the outside auditors (the Auditor Settlement and, collectively with the AIG Settlement, the Settlement). On October 7, 2014, the Court granted lead plaintiff’s Motion for Preliminary Approval of Settlement and Approval of Notice to the Class and scheduled a final settlement approval hearing for March 20, 2015. The deadline for parties to exclude themselves from the Settlement passed on January 5, 2015. The Settlement remains subject to final approval by the Court. On October 22, 2014, AIG made a cash payment of $960 million, which is being held in escrow pending final approval of the AIG Settlement and which will be returned if the AIG Settlement is not approved. The AIG Settlement amount has been accrued. | |||
Individual Securities Litigations. Between November 18, 2011 and September 16, 2013, nine separate, though similar, securities actions were filed asserting claims substantially similar to those in the Consolidated 2008 Securities Litigation against AIG and certain directors and officers of AIG and AIGFP (one such action also names as defendants AIG’s outside auditor and the underwriters of various securities offerings). Two such actions have been voluntarily dismissed; the remainder are now pending in the Southern District of New York. On January 20, 2015, AIG and other defendants filed motions to dismiss some or all of the claims asserted in all such actions pending as of that date. On February 2, 2015, and February 9, 2015, two additional securities actions were filed in the Southern District of New York asserting claims substantially similar to those in the Consolidated 2008 Securities Litigation against AIG (one of the two actions also names as defendants certain directors and officers of AIG and AIGFP, and AIG’s outside auditor and certain of AIG’s underwriters during the relevant period). | |||
We have accrued our current estimate of probable loss with respect to the pending litigations and other potential related litigations. | |||
ERISA Actions – Southern District of New York. Between June 25, 2008 and November 25, 2008, AIG, certain directors and officers of AIG, and members of AIG’s Retirement Board and Investment Committee were named as defendants in eight purported class action complaints asserting claims on behalf of participants in certain pension plans sponsored by AIG or its subsidiaries. The Court subsequently consolidated these eight actions as In re American International Group, Inc. ERISA Litigation II. On December 19, 2014, lead plaintiffs’ counsel filed under seal a third consolidated amended complaint. The action purports to be brought as a class action under the Employee Retirement Income Security Act of 1974, as amended (ERISA), on behalf of all participants in or beneficiaries of certain benefit plans of AIG and its subsidiaries that offered shares of AIG Common Stock. In the third consolidated amended complaint, plaintiffs allege, among other things, that the defendants breached their fiduciary responsibilities to plan participants and their beneficiaries under ERISA, by continuing to offer the AIG Stock Fund as an investment option in the plans after it allegedly became imprudent to do so. The alleged ERISA violations relate to, among other things, the defendants’ purported failure to monitor and/or disclose certain matters, including the Subprime Exposure Issues. | |||
On January 6, 2015, the parties informed the Court that they had accepted a mediator’s proposal to settle the action for $40 million. On January 7, 2015, the Court removed all previously scheduled deadlines from the Court’s calendar, subject to the parties’ submission of settlement papers to the Court seeking an order preliminarily approving the proposed settlement and providing for notice to the class and a final settlement hearing. The entirety of the $40 million settlement is expected to be paid by AIG’s fiduciary liability insurance carriers. | |||
Canadian Securities Class Action – Ontario Superior Court of Justice. On November 12, 2008, an application was filed in the Ontario Superior Court of Justice for leave to bring a purported class action against AIG, AIGFP, certain directors and officers of AIG and Joseph Cassano, the former Chief Executive Officer of AIGFP, pursuant to the Ontario Securities Act. If the Court grants the application, a class plaintiff will be permitted to file a statement of claim against defendants. The proposed statement of claim would assert a class period of March 16, 2006 through September 16, 2008 and would allege that during this period defendants made false and misleading statements and omissions in quarterly and annual reports and during oral presentations in violation of the Ontario Securities Act. | |||
On April 17, 2009, defendants filed a motion record in support of their motion to stay or dismiss for lack of jurisdiction and forum non conveniens. On July 12, 2010, the Court adjourned a hearing on the motion pending a decision by the Supreme Court of Canada in a pair of actions captioned Club Resorts Ltd. v. Van Breda 2012 SCC 17. On April 18, 2012, the Supreme Court of Canada clarified the standard for determining jurisdiction over foreign and out-of-province defendants, such as AIG, by holding that a defendant must have some form of “actual,” as opposed to a merely “virtual,” presence to be deemed to be “doing business” in the jurisdiction. The Supreme Court of Canada also suggested that in future cases, defendants may contest jurisdiction even when they are found to be doing business in a Canadian jurisdiction if their business activities in the jurisdiction are unrelated to the subject matter of the litigation. The matter has been stayed pending further developments in the Consolidated 2008 Securities Litigation. Plaintiff has not yet moved to lift the stay. | |||
In plaintiff’s proposed statement of claim, plaintiff alleged general and special damages of $500 million and punitive damages of $50 million plus prejudgment interest or such other sums as the Court finds appropriate. As of February 20, 2015, the Court has not determined whether it has jurisdiction or granted plaintiff’s application to file a statement of claim, no merits discovery has occurred and the action has been stayed. As a result, we are unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation. | |||
Starr International Litigation | |||
On November 21, 2011, Starr International Company, Inc. (SICO) filed a complaint against the United States in the United States Court of Federal Claims (the Court of Federal Claims), bringing claims, both individually and on behalf of the classes defined below and derivatively on behalf of AIG (the SICO Treasury Action). The complaint challenges the government’s assistance of AIG, pursuant to which AIG entered into a credit facility with the Federal Reserve Bank of New York (the FRBNY, and such credit facility, the FRBNY Credit Facility) and the United States received an approximately 80 percent ownership in AIG. The complaint alleges that the interest rate imposed on AIG and the appropriation of approximately 80 percent of AIG’s equity was discriminatory, unprecedented, and inconsistent with liquidity assistance offered by the government to other comparable firms at the time and violated the Equal Protection, Due Process, and Takings Clauses of the U.S. Constitution. | |||
In rulings dated July 2, 2012 and September 17, 2012, the Court of Federal Claims largely denied the United States’ motion to dismiss in the SICO Treasury Action. | |||
In the SICO Treasury Action, the only claims naming AIG as a party (as a nominal defendant) are derivative claims on behalf of AIG. On September 21, 2012, SICO made a pre-litigation demand on our Board demanding that we pursue the derivative claims or allow SICO to pursue the claims on our behalf. On January 9, 2013, our Board unanimously refused SICO’s demand in its entirety and on January 23, 2013, counsel for the Board sent a letter to counsel for SICO describing the process by which our Board considered and refused SICO’s demand and stating the reasons for our Board’s determination. | |||
On March 11, 2013, SICO filed a second amended complaint in the SICO Treasury Action alleging that its demand was wrongfully refused. On June 26, 2013, the Court of Federal Claims granted AIG’s and the United States’ motions to dismiss SICO’s derivative claims in the SICO Treasury Action and denied the United States’ motion to dismiss SICO’s direct claims. | |||
On March 11, 2013, the Court of Federal Claims in the SICO Treasury Action granted SICO’s motion for class certification of two classes with respect to SICO’s non-derivative claims: (1) persons and entities who held shares of AIG Common Stock on or before September 16, 2008 and who owned those shares on September 22, 2008; and (2) persons and entities who owned shares of AIG Common Stock on June 30, 2009 and were eligible to vote those shares at AIG’s June 30, 2009 annual meeting of shareholders. SICO has provided notice of class certification to potential members of the classes, who, pursuant to a court order issued on April 25, 2013, had to return opt-in consent forms by September 16, 2013 to participate in either class. 286,908 holders of AIG Common Stock during the two class periods have opted into the classes. | |||
Trial in the SICO Treasury Action began in the Court of Federal Claims on September 29, 2014, and witness testimony concluded on November 24, 2014. SICO argued during trial that the two classes are entitled to a total of approximately $40 billion in damages, plus interest. The parties are in the process of post-trial briefing. | |||
While AIG is no longer a party to the SICO Treasury Action, the United States has alleged, as an affirmative defense in its answer, that AIG is obligated to indemnify the FRBNY and its representatives, including the Federal Reserve Board of Governors and the United States (as the FRBNY’s principal), for any recovery in the SICO Treasury Action, and seeks a contingent offset or recoupment for the value of net operating loss benefits the United States alleges that we received as a result of the government’s assistance. On November 8, 2013, the Court denied a motion by SICO to strike the United States’ affirmative defenses of indemnification and contingent offset or recoupment. | |||
AIG believes that any such indemnification obligation would arise only if: (a) SICO prevails on its claims at trial and receives an award of damages and prevails through any appellate process; (b) the United States commences an action against AIG seeking indemnification; and (c) the United States is successful in such an action through any appellate process. If SICO prevails on its claims and the United States seeks indemnification from AIG, AIG intends to assert defenses thereto. A final determination that the United States is liable for damages, together with a final determination that AIG is obligated to indemnify the United States for any such damages, could have a material adverse effect on our business, consolidated financial condition and results of operations. | |||
False Claims Act Complaint | |||
On February 25, 2010, a complaint was filed in the United States District Court for the Southern District of California by two individuals (Relators) seeking to assert claims on behalf of the United States against AIG and certain other defendants, including Goldman Sachs and Deutsche Bank, under the False Claims Act. Relators filed a first amended complaint on September 30, 2010, adding certain additional defendants, including Bank of America and Société Générale. The first amended complaint alleged that defendants engaged in fraudulent business practices in respect of their activities in the over-the-counter market for collateralized debt obligations, and submitted false claims to the United States in connection with the FRBNY Credit Facility and Maiden Lane II LLC (ML II) and Maiden Lane III LLC entities (the Maiden Lane Interests) through, among other things, misrepresenting AIG’s ability and intent to repay amounts drawn on the FRBNY Credit Facility, and misrepresenting the value of the securities that the Maiden Lane Interests acquired from AIG and certain of its counterparties. The first amended complaint sought unspecified damages pursuant to the False Claims Act in the amount of three times the damages allegedly sustained by the United States as well as interest, attorneys’ fees, costs and expenses. The complaint and the first amended complaint were initially filed and maintained under seal while the United States considered whether to intervene in the action. On or about April 28, 2011, after the United States declined to intervene, the District Court lifted the seal, and Relators served the first amended complaint on AIG on July 11, 2011. On April 19, 2013, the Court granted AIG’s motion to dismiss, dismissing the first amended complaint in its entirety, without prejudice, giving the Relators the opportunity to file a second amended complaint. On May 24, 2013, the Relators filed a second amended complaint, which attempted to plead the same claims as the prior complaints and did not specify an amount of alleged damages. AIG and its co-defendants filed motions to dismiss the second amended complaint on August 9, 2013. On March 29, 2014, the Court dismissed the second amended complaint with prejudice. On April 30, 2014, the Relators filed a Notice of Appeal to the Ninth Circuit. We are unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation. | |||
Litigation Matters Relating to AIG’s Insurance Operations | |||
Caremark. AIG and certain of its subsidiaries have been named defendants in two putative class actions in state court in Alabama that arise out of the 1999 settlement of class and derivative litigation involving Caremark Rx, Inc. (Caremark). The plaintiffs in the second-filed action intervened in the first-filed action, and the second-filed action was dismissed. An excess policy issued by a subsidiary of AIG with respect to the 1999 litigation was expressly stated to be without limit of liability. In the current actions, plaintiffs allege that the judge approving the 1999 settlement was misled as to the extent of available insurance coverage and would not have approved the settlement had he known of the existence and/or unlimited nature of the excess policy. They further allege that AIG, its subsidiaries, and Caremark are liable for fraud and suppression for misrepresenting and/or concealing the nature and extent of coverage. | |||
The complaints filed by the plaintiffs and the intervenors request compensatory damages for the 1999 class in the amount of $3.2 billion, plus punitive damages. AIG and its subsidiaries deny the allegations of fraud and suppression, assert that information concerning the excess policy was publicly disclosed months prior to the approval of the settlement, that the claims are barred by the statute of limitations, and that the statute cannot be tolled in light of the public disclosure of the excess coverage. The plaintiffs and intervenors, in turn, have asserted that the disclosure was insufficient to inform them of the nature of the coverage and did not start the running of the statute of limitations. | |||
On August 15, 2012, the trial court entered an order granting plaintiffs’ motion for class certification, and on September 12, 2014, the Alabama Supreme Court affirmed that order. AIG and the other defendants have petitioned for rehearing of that decision. Absent further review of the class certification order, the matter will return to the trial court for general discovery (which has not yet commenced) and adjudication of the merits. AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation. | |||
Regulatory and Related Matters | |||
In April 2007, the National Association of Insurance Commissioners (NAIC) formed a Settlement Review Working Group, directed by the State of Indiana, to review the Workers’ Compensation Residual Market Assessment portion of the settlement between AIG, the Office of the New York Attorney General, and the New York State Department of Insurance. In late 2007, the Settlement Review Working Group, under the direction of Indiana, Minnesota and Rhode Island, recommended that a multi-state targeted market conduct examination focusing on workers’ compensation insurance be commenced under the direction of the NAIC’s Market Analysis Working Group. AIG was informed of the multi-state targeted market conduct examination in January 2008. The lead states in the multi-state examination were Delaware, Florida, Indiana, Massachusetts, Minnesota, New York, Pennsylvania and Rhode Island. All other states (and the District of Columbia) agreed to participate in the multi-state examination. The examination focused on legacy issues related to certain AIG entities’ writing and reporting of workers compensation insurance between 1985 and 1996. | |||
On December 17, 2010, AIG and the lead states reached an agreement to settle all regulatory liabilities arising out of the subjects of the multistate examination. This regulatory settlement agreement, which was agreed to by all 50 states and the District of Columbia, included, among other terms, (i) AIG’s payment of $100 million in regulatory fines and penalties; (ii) AIG’s payment of $46.5 million in outstanding premium taxes and assessments; (iii) AIG’s agreement to enter into a compliance plan describing agreed-upon specific steps and standards for evaluating AIG’s ongoing compliance with state regulations governing the setting of workers’ compensation insurance premium rates and the reporting of workers compensation premiums; and (iv) AIG’s agreement to pay up to $150 million in contingent fines in the event that AIG fails to comply substantially with the compliance plan requirements. In furtherance of the compliance plan, the agreement provided for a monitoring period from May 29, 2012 to May 29, 2014 leading up to a compliance plan examination. After the close of the monitoring period, as part of preparation for the actual conduct of the compliance plan examination, on or about October 1, 2014, AIG and the lead states agreed upon corrective action plans to address particular issues identified during the monitoring period. The compliance plan examination is ongoing. There can be no assurance that the result of the compliance plan examination will not result in a fine, have a material adverse effect on AIG’s ongoing operations or lead to civil litigation. | |||
In connection with a multi-state examination of certain accident and health products, including travel products, issued by National Union Fire Insurance Company of Pittsburgh, Pa. (National Union), AIG Property Casualty Inc. (formerly Chartis Inc.), on behalf of itself, National Union, and certain of AIG Property Casualty Inc.’s insurance and non-insurance companies (collectively, the AIG PC parties) entered into a Regulatory Settlement Agreement with regulators from 50 U.S. jurisdictions effective November 29, 2012. Under the agreement, and without admitting any liability for the issues raised in the examination, the AIG PC parties (i) paid a civil penalty of $50 million, (ii) entered into a corrective action plan describing agreed-upon specific steps and standards for evaluating the AIG PC parties’ ongoing compliance with laws and regulations governing the issues identified in the examination, and (iii) agreed to pay a contingent fine in the event that the AIG PC parties fail to satisfy certain terms of the corrective action plan. National Union and other AIG companies are also currently subject to civil litigation relating to the conduct of their accident and health business, and may be subject to additional litigation relating to the conduct of such business from time to time in the ordinary course. There can be no assurance that any regulatory action resulting from the issues identified will not have a material adverse effect on our ongoing operations of the business subject to the agreement, or on similar business written by other AIG carriers. | |||
Industry-wide examinations conducted by the Minnesota Department of Insurance and the Department of Housing and Urban Development (HUD) on captive reinsurance practices by lenders and mortgage insurance companies, including UGC, have been ongoing for several years. In 2011, the Consumer Financial Protection Bureau (CFPB) assumed responsibility for violations of the Real Estate Settlement Procedures Act from HUD, and assumed HUD’s aforementioned ongoing investigation. UGC and the CFPB reached a settlement, entered on April 8, 2013 by the United States District Court for the Southern District of Florida, where UGC consented to discontinue its remaining captive reinsurance practices and to pay a civil monetary penalty of $4.5 million to the CFPB. The settlement includes a release for all liability related to UGC’s captive reinsurance practices and resolves the CFPB’s investigation. On January 31, 2014, PHH Corp. and various affiliates (all non-parties to the action and the consent order) filed a motion to reopen the case and to intervene therein for the limited purpose of obtaining a declaratory judgment enforcing the consent order. UGC opposed this request, and on March 10, 2014, the Court denied PHH Corp.’s motion. PHH Corp. has appealed to the Eleventh Circuit. | |||
UGC has received a proposed consent order from the Minnesota Commissioner of Commerce (the MN Commissioner) which alleges that UGC violated the Real Estate Settlement Procedures Act and other state laws in connection with its practices with captive reinsurance companies owned by lenders. UGC is engaged in discussions with the MN Commissioner with respect to the terms of the proposed consent order. UGC cannot predict if or when a consent order may be entered into or, if entered into, what the terms of the final consent order will be. UGC has been subject to civil litigation relating to its placement of reinsurance with captives owned by lenders, and may be subject to additional litigation relating to the conduct of such business from time to time in the ordinary course. | |||
AIG is responding to subpoenas from the New York Department of Financial Services (NYDFS) and the Manhattan District Attorney’s Office (NYDA) relating to AIG’s formerly wholly owned subsidiaries, ALICO and Delaware American Life Insurance Company (DelAm), and other related business units, which were sold by AIG to MetLife in November 2010. The inquiries relate to whether ALICO, DelAm and their representatives conducted insurance business in New York over an extended period of time without a license, and whether certain representations by ALICO concerning its activities in New York were accurate. On or about March 31, 2014, a consent order between MetLife and the NYDFS, whereby MetLife agreed to pay $50 million, and a deferred prosecution agreement with the NYDA, whereby MetLife agreed to pay $10 million, were announced. AIG was not a party to either settlement. The consent order between the NYDFS and MetLife made certain findings, including that former AIG subsidiaries and affiliates conducted insurance business in New York without a license and that ALICO, while operating as a subsidiary of AIG, made misrepresentations and omissions concerning its insurance business activities in New York to NYDFS’s predecessor agency, the New York State Department of Insurance. The NYDFS also found in the consent order that AIG had violated the New York Insurance Law. On April 3, 2014, AIG filed a complaint against the NYDFS and NYDFS Superintendent Benjamin Lawsky in the Southern District of New York, seeking declaratory and injunctive relief on the basis that the NYDFS’s interpretation of the New York Insurance Law is unconstitutional under the Due Process and Commerce Clauses, as well as the First Amendment, of the U.S. Constitution. Defendants filed a motion to dismiss the federal complaint on May 16, 2014. On October 31, 2014, AIG and NYDFS entered into a Consent Order, whereby AIG agreed to pay $35 million and dismiss the federal lawsuit in exchange for NYDFS’s agreement to discontinue its inquiry. | |||
On May 12, 2010, a complaint was filed under seal in the Southern District of New York by an individual (Relator) seeking to assert claims on behalf of the United States against AIG under the False Claims Act. The Relator filed also under seal a first amended complaint on July 28, 2011. The complaint and the first amended complaint were initially filed and maintained under seal while the United States considered whether to intervene in the action, and on or about October 29, 2013, after the United States declined to intervene, the District Court ordered the complaint be unsealed 30 days after the entry of the order. The case, however, was not unsealed until May 9, 2014. The Relator thereafter served his second amended complaint on AIG on May 23, 2014. The second amended complaint alleges that AIG made false statements relevant to the valuation of two of its former subsidiaries, ALICO and American International Assurance Limited (AIA), in connection with agreements under which interests in those subsidiaries were transferred to the FRBNY in exchange for a $25 billion decrease in the amount owed to the FRBNY under the FRBNY Credit Facility. Specifically, it alleges that AIG falsely told the federal government that ALICO and AIA had the licenses they needed to conduct their business and were in compliance with applicable laws and regulations. AIG moved to dismiss the Relator’s second amended complaint on December 22, 2014. | |||
As previously disclosed in prior quarters, a state regulatory agency has requested additional information relating to the unwinding of a position on which we realized gains of $196 million for the year ended December 31, 2014. | |||
Legal Reserves | |||
We recorded increases in our legal reserve liability of $507 million and $391 million in the years ended December 31, 2014 and 2013, respectively. | |||
Other Contingencies | |||
Liability for unpaid losses and loss adjustment expenses | |||
Although we regularly review the adequacy of the established Liability for unpaid losses and loss adjustment expenses, there can be no assurance that our loss reserves will not develop adversely and have a material adverse effect on our results of operations. Estimation of ultimate net losses, loss expenses and loss reserves is a complex process, particularly for long-tail casualty lines of business, which include, but are not limited to, general liability, commercial automobile liability, environmental, workers’ compensation, excess casualty and crisis management coverages, insurance and risk management programs for large corporate customers and other customized structured insurance products, as well as excess and umbrella liability, directors and officers and products liability. Generally, actual historical loss development factors are used to project future loss development. However, there can be no assurance that future loss development patterns will be the same as in the past. Moreover, any deviation in loss cost trends or in loss development factors might not be identified for an extended period of time subsequent to the recording of the initial loss reserve estimates for any accident year. Reserves with respect to a number of years may be significantly affected by changes in loss cost trends or loss development factors that were relied upon in setting the reserves. These changes in loss cost trends or loss development factors could be attributable to changes in global economic conditions, changes in the legal, regulatory, judicial and social environment, changes in medical cost trends (for example, inflation, intensity and utilization of medical services), underlying policy pricing, terms and conditions, and claims handling practices. | |||
Commitments | |||
We occupy leased space in many locations under various long-term leases and have entered into various leases covering the long-term use of data processing equipment. | |||
The following table presents the future minimum lease payments under operating leases at December 31, 2014: | |||
(in millions) | |||
2015 | $ | 349 | |
2016 | 265 | ||
2017 | 191 | ||
2018 | 136 | ||
2019 | 98 | ||
Remaining years after 2019 | 265 | ||
Total | $ | 1,304 | |
Rent expense was $471 million, $414 million and $445 million for the years ended December 31, 2014, 2013 and 2012, respectively. These amounts include $7 million for the year ended December 31, 2014 related to ILFC prior to the sale in 2014, and $15 million and $16 million attributable to businesses held for sale for the years ended December 31, 2013 and 2012, respectively. | |||
Other Commitments | |||
In the normal course of business, we enter into commitments to invest in limited partnerships, private equity funds and hedge funds and to purchase and develop real estate in the U.S. and abroad. These commitments totaled $2.5 billion at December 31, 2014. | |||
Guarantees | |||
Subsidiaries | |||
We have issued unconditional guarantees with respect to the prompt payment, when due, of all present and future payment obligations and liabilities of AIGFP and those arising from transactions entered into by AIG Markets. | |||
In connection with AIGFP’s business activities, AIGFP has issued, in a limited number of transactions, standby letters of credit or similar facilities to equity investors of structured leasing transactions in an amount equal to the termination value owing to the equity investor by the lessee in the event of a lessee default (the equity termination value) that are not otherwise satisfied by other arrangements. The total amount outstanding under these facilities at December 31, 2014 was $214 million. In those transactions, AIGFP has agreed to pay the equity termination value if the lessee fails to pay. The amount payable by AIGFP is, in certain cases, partially offset by amounts payable under other instruments typically equal to the present value of scheduled payments to be made by AIGFP. In the event that AIGFP is required to make a payment to the equity investor, the lessee is unconditionally obligated to reimburse AIGFP. To the extent that the equity investor is paid the equity termination value from the standby letter of credit and/or other sources, including payments by the lessee, AIGFP takes an assignment of the equity investor’s rights under the lease of the underlying property. Because the obligations of the lessee under the lease transactions are generally economically defeased, lessee bankruptcy is the most likely circumstance in which AIGFP would be required to pay without reimbursement. | |||
Asset Dispositions | |||
General | |||
We are subject to financial guarantees and indemnity arrangements in connection with the sales of businesses that occurred pursuant to our asset disposition plan. The various arrangements may be triggered by, among other things, declines in asset values, the occurrence of specified business contingencies, the realization of contingent liabilities, developments in litigation or breaches of representations, warranties or covenants made by us. These arrangements are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or are not applicable. | |||
We are unable to develop a reasonable estimate of the maximum potential liability under certain of these arrangements. Overall, we believe that it is unlikely we will have to make any material payments related to the sales subject to these arrangements, and no material liabilities related to these arrangements have been recorded in the Consolidated Balance Sheets. See Note 4 herein for additional information on sales of businesses and asset dispositions. | |||
Other | |||
See Note 10 for commitments and guarantees associated with VIEs. | |||
See Note 11 for disclosures about derivatives. | |||
See Note 26 for additional disclosures about guarantees of outstanding debt. | |||
EQUITY
EQUITY | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
EQUITY | |||||||||||||
EQUITY | 17. Equity | ||||||||||||
Shares Outstanding | |||||||||||||
The following table presents a rollforward of outstanding shares: | |||||||||||||
Common | Treasury | Common Stock | |||||||||||
Stock Issued | Stock | Outstanding | |||||||||||
Year Ended December 31, 2012 | |||||||||||||
Shares, beginning of year | 1,906,568,099 | -9,746,617 | 1,896,821,482 | ||||||||||
Issuances | 43,581 | 685,727 | 729,308 | ||||||||||
Shares purchased | - | -421,228,855 | -421,228,855 | ||||||||||
Shares, end of year | 1,906,611,680 | -430,289,745 | 1,476,321,935 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||
Shares, beginning of year | 1,906,611,680 | -430,289,745 | 1,476,321,935 | ||||||||||
Shares issued | 34,009 | 24,778 | 58,787 | ||||||||||
Shares repurchased | - | -12,317,399 | -12,317,399 | ||||||||||
Shares, end of year | 1,906,645,689 | -442,582,366 | 1,464,063,323 | ||||||||||
Year Ended December 31, 2014 | |||||||||||||
Shares, beginning of year | 1,906,645,689 | -442,582,366 | 1,464,063,323 | ||||||||||
Shares issued | 25,803 | 15,748 | 41,551 | ||||||||||
Shares repurchased | - | -88,177,903 | -88,177,903 | ||||||||||
Shares, end of year | 1,906,671,492 | -530,744,521 | 1,375,926,971 | ||||||||||
Dividends | |||||||||||||
Payment of future dividends to our shareholders and repurchases of AIG Common Stock depends in part on the regulatory framework that we are currently subject to and that will ultimately be applicable to us, including as a nonbank systemically important financial institution under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd Frank) and a global systemically important insurer. In addition, dividends are payable on AIG Common Stock only when, as and if declared by our Board of Directors in its discretion, from funds legally available therefor. In considering whether to pay a dividend or purchase shares of AIG Common Stock, our Board of Directors considers such matters as the performance of our businesses, our consolidated financial condition, results of operations and liquidity, available capital, the existence of investment opportunities, contractual, legal and regulatory restrictions on the payment of dividends by our subsidiaries, rating agency considerations, including the potential effect on our debt ratings, and such other factors as our Board of Directors may deem relevant. | |||||||||||||
On March 25, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on March 11, 2014. On June 24, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on June 10, 2014. On September 25, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on September 11, 2014. On December 18, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on December 4, 2014. | |||||||||||||
Repurchase of AIG Common Stock in 2014 and 2013 | |||||||||||||
On August 1, 2013, our Board of Directors authorized the repurchase of shares of AIG Common Stock, with an aggregate purchase price of up to $1.0 billion, from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise. For the year ended December 31, 2013, we repurchased approximately 12 million shares of AIG Common Stock for an aggregate purchase price of approximately $597 million pursuant to this authorization. | |||||||||||||
On February 13, 2014, June 5, 2014 and October 31, 2014, our Board of Directors authorized increases to the August 1, 2013 repurchase authorization of AIG Common Stock of an aggregate of $4.5 billion. For the year ended December 31, 2014, we repurchased approximately 88 million shares of AIG Common Stock for an aggregate purchase price of approximately $4.9 billion. | |||||||||||||
In the second, third and fourth quarters of 2014, we executed five accelerated stock repurchase (ASR) agreements with third-party financial institutions. The total number of shares of AIG Common Stock repurchased in the twelve-month period ended December 31, 2014, and the aggregate purchase price of those shares, each as set forth above, reflect our payment of approximately $3.1 billion in the aggregate under the ASR agreements and the receipt of approximately 53 million shares of AIG Common Stock in the aggregate, including the initial receipt of 70 percent of the total notional share equivalent, or approximately 9.2 million shares of AIG Common Stock, under an ASR agreement executed in December 2014. That ASR agreement settled in January 2015, at which time we received approximately 3.5 million additional shares of AIG Common Stock based on a formula specified by the terms of the ASR agreement. | |||||||||||||
The timing of any future repurchases will depend on market conditions, our financial condition, results of operations, liquidity and other factor | |||||||||||||
AIG Common Stock Offerings by the Department of the Treasury and AIG Purchases of AIG Common Stock in 2012 | |||||||||||||
Through registered public offerings, the Department of the Treasury disposed of all of its ownership of AIG Common Stock as of December 31, 2012, from ownership of approximately 92 percent (1.7 billion shares) prior to the completion of the first registered public offering initiated by the Department of the Treasury as selling shareholder in May 2011. During 2012, the Department of the Treasury, as selling shareholder, completed registered public offerings of AIG Common Stock on March 13 (the March Offering), May 10 (the May Offering), August 8 (the August Offering), September 14 (the September Offering) and December 14 (the December Offering). We participated as a purchaser in the first four 2012 offerings. Each of these purchases was authorized by our Board of Directors. | |||||||||||||
The following table presents certain information relating to these offerings: | |||||||||||||
U.S. Treasury | AIG | ||||||||||||
(dollars in millions, except share-price data) | Price | Shares Sold | Amount | Shares Purchased | Amount | ||||||||
2012 Offerings: | |||||||||||||
March Offering | $ | 29 | 206,896,552 | $ | 6,000 | 103,448,276 | $ | 3,000 | |||||
May Offering | 30.5 | 188,524,589 | 5,750 | 65,573,770 | 2,000 | ||||||||
August Offering | 30.5 | 188,524,590 | 5,750 | 98,360,656 | 3,000 | ||||||||
September Offering | 32.5 | 636,923,075 | 20,700 | 153,846,153 | 5,000 | ||||||||
December Offering | 32.5 | 234,169,156 | 7,610 | - | - | ||||||||
1,455,037,962 | $ | 45,810 | 421,228,855 | $ | 13,000 | ||||||||
* Shares purchased by us in each of the 2012 offerings were purchased pursuant to AIG Board of Directors authorization. | |||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||
The following table presents a rollforward of Accumulated other comprehensive income: | |||||||||||||
Unrealized Appreciation | |||||||||||||
(Depreciation) of Fixed | Net Derivative | ||||||||||||
Maturity Securities | Unrealized | Gains (Losses) | |||||||||||
on Which Other-Than- | Appreciation | Foreign | Arising from | Retirement | |||||||||
Temporary Credit | (Depreciation) | Currency | Cash Flow | Plan | |||||||||
Impairments | of All Other | Translation | Hedging | Liabilities | |||||||||
(in millions) | Were Recognized | Investments | Adjustments | Activities | Adjustment | Total | |||||||
Balance, January 1, 2012 | $ | -711 | $ | 8,575 | $ | -409 | $ | -17 | $ | -957 | $ | 6,481 | |
Change in unrealized | |||||||||||||
appreciation | |||||||||||||
of investments | 2,306 | 8,404 | - | - | - | 10,710 | |||||||
Change in deferred policy | |||||||||||||
acquisition costs | |||||||||||||
adjustment and other | -49 | -840 | - | - | - | -889 | |||||||
Change in future policy | |||||||||||||
benefits* | -85 | -432 | - | - | - | -517 | |||||||
Change in foreign currency | |||||||||||||
translation adjustments | - | - | -33 | - | - | -33 | |||||||
Change in net derivative | |||||||||||||
gains arising from | |||||||||||||
cash flow hedging | |||||||||||||
activities | - | - | - | 33 | - | 33 | |||||||
Change in net actuarial loss | - | - | - | - | -273 | -273 | |||||||
Change in prior service credit | - | - | - | - | -46 | -46 | |||||||
Change in deferred tax | |||||||||||||
asset (liability) | -886 | -2,252 | 33 | -16 | 232 | -2,889 | |||||||
Total other comprehensive | |||||||||||||
income (loss) | 1,286 | 4,880 | - | 17 | -87 | 6,096 | |||||||
Noncontrolling interests | - | 9 | -6 | - | - | 3 | |||||||
Balance, December 31, 2012 | $ | 575 | $ | 13,446 | $ | -403 | $ | - | $ | -1,044 | $ | 12,574 | |
Change in unrealized | |||||||||||||
appreciation (depreciation) | |||||||||||||
of investments | 464 | -14,069 | - | - | - | -13,605 | |||||||
Change in deferred policy | |||||||||||||
acquisition costs | |||||||||||||
adjustment and other | -127 | 1,000 | - | - | - | 873 | |||||||
Change in future policy | |||||||||||||
benefits | 79 | 2,658 | - | - | - | 2,737 | |||||||
Change in foreign currency | |||||||||||||
translation adjustments | - | - | -454 | - | - | -454 | |||||||
Change in net actuarial loss | - | - | - | - | 1,012 | 1,012 | |||||||
Change in prior service credit | - | - | - | - | -51 | -51 | |||||||
Change in deferred tax | |||||||||||||
asset (liability) | -55 | 3,738 | -102 | - | -330 | 3,251 | |||||||
Total other comprehensive | |||||||||||||
income (loss) | 361 | -6,673 | -556 | - | 631 | -6,237 | |||||||
Noncontrolling interests | - | -16 | -7 | - | - | -23 | |||||||
Balance, December 31, 2013 | $ | 936 | $ | 6,789 | $ | -952 | $ | - | $ | -413 | $ | 6,360 | |
Change in unrealized | |||||||||||||
appreciation | |||||||||||||
of investments | 156 | 7,564 | - | - | - | 7,720 | |||||||
Change in deferred policy | |||||||||||||
acquisition costs | |||||||||||||
adjustment and other | 68 | -495 | - | - | - | -427 | |||||||
Change in future policy | |||||||||||||
benefits | -133 | -1,113 | - | - | - | -1,246 | |||||||
Change in foreign currency | |||||||||||||
translation adjustments | - | - | -833 | - | - | -833 | |||||||
Change in net actuarial loss | - | - | - | - | -815 | -815 | |||||||
Change in prior service credit | - | - | - | - | -49 | -49 | |||||||
Change in deferred tax | |||||||||||||
asset (liability) | 16 | -418 | 1 | - | 308 | -93 | |||||||
Total other comprehensive | |||||||||||||
income (loss) | 107 | 5,538 | -832 | - | -556 | 4,257 | |||||||
Noncontrolling interests | - | - | - | - | - | - | |||||||
Balance, December 31, 2014 | $ | 1,043 | $ | 12,327 | $ | -1,784 | $ | - | $ | -969 | $ | 10,617 | |
* The adjustment to policyholder benefit reserves assumes that the unrealized appreciation on available for sale securities is actually realized and that the proceeds are reinvested at lower yields. | |||||||||||||
The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
Unrealized Appreciation | |||||||||||||
(Depreciation) of Fixed | Net Derivative | ||||||||||||
Maturity Securities | Unrealized | Gains (Losses) | |||||||||||
on Which Other-Than- | Appreciation | Foreign | Arising from | Retirement | |||||||||
Temporary Credit | (Depreciation) | Currency | Cash Flow | Plan | |||||||||
Impairments Were | of All Other | Translation | Hedging | Liabilities | |||||||||
(in millions) | Recognized | Investments | Adjustments | Activities | Adjustment | Total | |||||||
31-Dec-12 | |||||||||||||
Unrealized change arising during period | $ | 2,236 | $ | 8,896 | $ | -33 | $ | -2 | $ | -406 | $ | 10,691 | |
Less: Reclassification adjustments | |||||||||||||
included in net income | 64 | 1,764 | - | -35 | -87 | 1,706 | |||||||
Total other comprehensive income (loss), | |||||||||||||
before income tax expense (benefit) | 2,172 | 7,132 | -33 | 33 | -319 | 8,985 | |||||||
Less: Income tax expense (benefit) | 886 | 2,252 | -33 | 16 | -232 | 2,889 | |||||||
Total other comprehensive income (loss), | |||||||||||||
net of income tax expense (benefit) | $ | 1,286 | $ | 4,880 | $ | - | $ | 17 | $ | -87 | $ | 6,096 | |
31-Dec-13 | |||||||||||||
Unrealized change arising during period | $ | 507 | $ | -9,556 | $ | -454 | $ | - | $ | 851 | $ | -8,652 | |
Less: Reclassification adjustments | |||||||||||||
included in net income | 91 | 855 | - | - | -110 | 836 | |||||||
Total other comprehensive income (loss), | |||||||||||||
before income tax expense (benefit) | 416 | -10,411 | -454 | - | 961 | -9,488 | |||||||
Less: Income tax expense (benefit) | 55 | -3,738 | 102 | - | 330 | -3,251 | |||||||
Total other comprehensive income (loss), | |||||||||||||
net of income tax expense (benefit) | $ | 361 | $ | -6,673 | $ | -556 | $ | - | $ | 631 | $ | -6,237 | |
31-Dec-14 | |||||||||||||
Unrealized change arising during period | $ | 119 | $ | 6,488 | $ | -833 | $ | - | $ | -866 | $ | 4,908 | |
Less: Reclassification adjustments | |||||||||||||
included in net income | 28 | 532 | - | - | -2 | 558 | |||||||
Total other comprehensive income (loss), | |||||||||||||
before income tax expense (benefit) | 91 | 5,956 | -833 | - | -864 | 4,350 | |||||||
Less: Income tax expense (benefit) | -16 | 418 | -1 | - | -308 | 93 | |||||||
Total other comprehensive income (loss), | |||||||||||||
net of income tax expense (benefit) | $ | 107 | $ | 5,538 | $ | -832 | $ | - | $ | -556 | $ | 4,257 | |
The following table presents the effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income: | |||||||||||||
Amount Reclassified | |||||||||||||
from Accumulated Other | |||||||||||||
Comprehensive Income | |||||||||||||
Years Ended December 31, | Affected Line Item in the | ||||||||||||
(in millions) | 2014 | 2013 | Consolidated Statements of Income | ||||||||||
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized | |||||||||||||
Investments | $ | 28 | $ | 91 | Other realized capital gains | ||||||||
Total | 28 | 91 | |||||||||||
Unrealized appreciation (depreciation) of all other investments | |||||||||||||
Investments | 669 | 2,452 | Other realized capital gains | ||||||||||
Deferred acquisition costs adjustment | -20 | -28 | Amortization of deferred acquisition costs | ||||||||||
Future policy benefits | -117 | -1,569 | Policyholder benefits and losses incurred | ||||||||||
Total | 532 | 855 | |||||||||||
Change in retirement plan liabilities adjustment | |||||||||||||
Prior-service costs | 47 | 47 | * | ||||||||||
Actuarial gains/(losses) | -49 | -157 | * | ||||||||||
Total | -2 | -110 | |||||||||||
Total reclassifications for the period | $ | 558 | $ | 836 | |||||||||
* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 22 to the Consolidated Financial Statements. |
NONCONTROLLING_INTERESTS
NONCONTROLLING INTERESTS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
NONCONTROLLING INTERESTS | ||||||||||||||
NONCONTROLLING INTERESTS | 18. NONCONTROLLING INTERESTS | |||||||||||||
The following table presents a rollforward of noncontrolling interests: | ||||||||||||||
Redeemable | Non-redeemable | |||||||||||||
Noncontrolling interests | Noncontrolling interests | |||||||||||||
Held by | ||||||||||||||
Department | Held by | |||||||||||||
(in millions) | of Treasury | Other | Total | FRBNY | Other | Total | ||||||||
Year Ended December 31, 2014 | ||||||||||||||
Balance, beginning of year | $ | - | $ | 30 | $ | 30 | $ | - | $ | 611 | $ | 611 | ||
Contributions from noncontrolling interests | - | 1 | 1 | - | 17 | 17 | ||||||||
Distributions to noncontrolling interests | - | - | - | - | -147 | -147 | ||||||||
Deconsolidation | - | -31 | -31 | - | -99 | -99 | ||||||||
Comprehensive loss: | ||||||||||||||
Net loss | - | - | - | - | -5 | -5 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Unrealized gains on investments | - | - | - | - | - | - | ||||||||
Foreign currency translation adjustments | - | - | - | - | - | - | ||||||||
Total other comprehensive | ||||||||||||||
income (loss), net of tax | - | - | - | - | - | - | ||||||||
Total comprehensive income (loss) | - | - | - | - | -5 | -5 | ||||||||
Other | - | - | - | - | -3 | -3 | ||||||||
Balance, end of year | $ | - | $ | - | $ | - | $ | - | $ | 374 | $ | 374 | ||
Year Ended December 31, 2013 | ||||||||||||||
Balance, beginning of year | $ | - | $ | 334 | $ | 334 | $ | - | $ | 667 | $ | 667 | ||
Contributions from noncontrolling interests | - | 48 | 48 | - | 33 | 33 | ||||||||
Distributions to noncontrolling interests | - | -167 | -167 | - | -81 | -81 | ||||||||
Consolidation (deconsolidation) | - | -169 | -169 | - | - | - | ||||||||
Comprehensive loss: | ||||||||||||||
Net income | - | 2 | 2 | - | 5 | 5 | ||||||||
Other comprehensive loss, net of tax: | ||||||||||||||
Unrealized losses on investments | - | -16 | -16 | - | - | - | ||||||||
Foreign currency translation adjustments | - | -2 | -2 | - | -5 | -5 | ||||||||
Total other comprehensive | ||||||||||||||
loss, net of tax | - | -18 | -18 | - | -5 | -5 | ||||||||
Total comprehensive loss | - | -16 | -16 | - | - | - | ||||||||
Other | - | - | - | - | -8 | -8 | ||||||||
Balance, end of year | $ | - | $ | 30 | $ | 30 | $ | - | $ | 611 | $ | 611 | ||
Year Ended December 31, 2012 | ||||||||||||||
Balance, beginning of year | $ | 8,427 | $ | 96 | $ | 8,523 | $ | - | $ | 855 | $ | 855 | ||
Repayment to Department of the Treasury | -8,635 | - | -8,635 | - | - | - | ||||||||
Contributions from noncontrolling interests | - | 36 | 36 | - | -87 | -87 | ||||||||
Distributions to noncontrolling interests | - | 68 | 68 | - | -27 | -27 | ||||||||
Comprehensive income: | ||||||||||||||
Net income | 208 | 14 | 222 | - | 40 | 40 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Unrealized gains on investments | - | 4 | 4 | - | 5 | 5 | ||||||||
Foreign currency translation adjustments | - | - | - | - | -6 | -6 | ||||||||
Total other comprehensive | ||||||||||||||
income (loss), net of tax | - | 4 | 4 | - | -1 | -1 | ||||||||
Total comprehensive income | 208 | 18 | 226 | - | 39 | 39 | ||||||||
Other | - | 116 | 116 | - | -113 | -113 | ||||||||
Balance, end of year | $ | - | $ | 334 | $ | 334 | $ | - | $ | 667 | $ | 667 | ||
Redeemable noncontrolling interest | ||||||||||||||
Nonvoting, callable, junior preferred interests held by the Department of Treasury represented preferred interests in the AIA SPV and ALICO SPV. In connection with the execution of our orderly asset disposition plan, as well as the repayment of the FRBNY Credit Facility, we transferred two of our wholly-owned businesses, AIA and ALICO, to two newly created SPVs in exchange for all the common and preferred interests (the SPV Preferred Interests) of those SPVs. On December 1, 2009, AIG transferred the SPV Preferred Interests to the FRBNY in consideration for a $25 billion reduction of the outstanding loan balance and of the maximum amount of credit available under the FRBNY Credit Facility and amended the terms of the FRBNY Credit Facility. As part of the closing of the Recapitalization, the remaining SPV Preferred Interests, with an aggregate liquidation preference of approximately $20.3 billion at January 14, 2011, were purchased from the FRBNY by AIG and transferred to the Department of the Treasury as part of the consideration for the exchange of our Series F Preferred Stock. | ||||||||||||||
The common interests, which we retained, entitled us to 100 percent of the voting power of the SPVs. The voting power allowed us to elect the boards of managers of the SPVs, who oversaw the management and operation of the SPVs. Primarily due to the substantive participation rights of the SPV Preferred Interests, the SPVs were determined to be VIEs. As the primary beneficiary of the SPVs, we consolidated the SPVs. | ||||||||||||||
As a result of the closing of the Recapitalization on January 14, 2011, the SPV Preferred Interests held by the Department of the Treasury were no longer considered permanent equity on our Consolidated Balance Sheets, and were classified as redeemable noncontrolling interests. As part of the Recapitalization, we used approximately $6.1 billion of the cash proceeds from the sale of ALICO to pay down a portion of the liquidation preference of the SPV Preferred Interests. The liquidation preference of the SPV Preferred Interests was further reduced by approximately $12.4 billion using proceeds from the sale of AIG Star, AIG Edison, Nan Shan, and MetLife securities received in the sale of ALICO. During the first quarter of 2011, the remaining liquidation preference of the ALICO SPV Preferred Interests was paid in full. | ||||||||||||||
The SPV Preferred Interests were measured at fair value on their issuance date. The SPV Preferred Interests initially had a liquidation preference of $25 billion and had a preferred return of five percent per year compounded quarterly through September 22, 2013 and nine percent thereafter. The preferred return is reflected in Net income from continuing operations attributable to noncontrolling interests - Nonvoting, callable, junior and senior preferred interests in the Consolidated Statements of Income. The difference between the SPV Preferred Interests’ fair value and the initial liquidation preference was amortized and included in Net income from continuing operations attributable to noncontrolling interests - Nonvoting, callable, junior and senior preferred interests. | ||||||||||||||
During the first quarter of 2012, the liquidation preference of the AIA SPV Preferred Interests was paid down in full. | ||||||||||||||
Non-redeemable noncontrolling interests | ||||||||||||||
Non-redeemable noncontrolling interests include the equity interests of third-party shareholders in our consolidated subsidiaries and includes the preferred shareholders’ equity in outstanding preferred stock of ILFC, a wholly-owned subsidiary that was held for sale at December 31, 2013 and 2012. The preferred stock in ILFC consisted of 1,000 shares of market auction preferred stock (MAPS) in two series (Series A and B) of 500 shares each. Each of the MAPS shares had a liquidation value of $100,000 per share and was not convertible. Dividends on the MAPS were accounted for as a reduction of the noncontrolling interest. The dividend rate, other than the initial rate, for each dividend period for each series was reset approximately every seven weeks (49 days) on the basis of orders placed in an auction, provided such auctions were able to occur. The MAPS were transferred as part of the sale of ILFC. | ||||||||||||||
On May 14, 2014, we completed the sale of International Lease Finance Corporation (ILFC) to AerCap Ireland Limited, a wholly owned subsidiary of AerCap Holdings N.V. (AerCap). See Note 4 – Held-For-Sale Classification and Discontinued Operations for further discussion. | ||||||||||||||
For the years ended December 31, 2014 and 2013, the Noncontrolling interests balance declined by $237 million and $56 million, respectively, primarily caused by distributions to noncontrolling interest |
EARNINGS_PER_SHARE_EPS
EARNINGS PER SHARE (EPS) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
EARNINGS PER SHARE (EPS) | ||||||||||||
EARNINGS PER SHARE (EPS) | 19. EARNINGS PER SHARE (EPS) | |||||||||||
The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The diluted EPS computation is based on those shares used in the basic EPS computation plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits. | ||||||||||||
The following table presents the computation of basic and diluted EPS: | ||||||||||||
Years Ended December 31, | ||||||||||||
(dollars in millions, except per share data) | 2014 | 2013 | 2012 | |||||||||
Numerator for EPS: | ||||||||||||
Income from continuing operations | $ | 7,574 | $ | 9,008 | $ | 3,699 | ||||||
Less: Net income (loss) from continuing operations attributable to noncontrolling interests: | ||||||||||||
Nonvoting, callable, junior and senior preferred interests | - | - | 208 | |||||||||
Other | -5 | 7 | 54 | |||||||||
Total net income (loss) from continuing operations attributable to noncontrolling interests | -5 | 7 | 262 | |||||||||
Income attributable to AIG common shareholders from continuing operations | 7,579 | 9,001 | 3,437 | |||||||||
Income (loss) from discontinued operations | -50 | 84 | 1 | |||||||||
Income (loss) attributable to AIG common shareholders from discontinued operations | -50 | 84 | 1 | |||||||||
Net income attributable to AIG common shareholders | $ | 7,529 | $ | 9,085 | $ | 3,438 | ||||||
Denominator for EPS: | ||||||||||||
Weighted average shares outstanding — basic | 1,427,959,799 | 1,474,171,690 | 1,687,197,038 | |||||||||
Dilutive shares | 19,593,853 | 7,035,107 | 29,603 | |||||||||
Weighted average shares outstanding — diluted* | 1,447,553,652 | 1,481,206,797 | 1,687,226,641 | |||||||||
Income per common share attributable to AIG: | ||||||||||||
Basic: | ||||||||||||
Income from continuing operations | $ | 5.31 | $ | 6.11 | $ | 2.04 | ||||||
Income from discontinued operations | $ | -0.04 | $ | 0.05 | $ | - | ||||||
Net Income attributable to AIG | $ | 5.27 | $ | 6.16 | $ | 2.04 | ||||||
Diluted: | ||||||||||||
Income from continuing operations | $ | 5.24 | $ | 6.08 | $ | 2.04 | ||||||
Income from discontinued operations | $ | -0.04 | $ | 0.05 | $ | - | ||||||
Net Income attributable to AIG | $ | 5.2 | $ | 6.13 | $ | 2.04 | ||||||
* Dilutive shares primarily result from share-based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of the recapitalization in January 2011. The number of shares excluded from diluted shares outstanding were 0.3 million, 38 million and 78 million for the years ended December 31, 2014, 2013 and 2012, respectively, because the effect of including those shares in the calculation would have been anti-dilutive. |
STATUTORY_FINANCIAL_DATA_AND_R
STATUTORY FINANCIAL DATA AND RESTRICTIONS | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
STATUTORY FINANCIAL DATA AND RESTRICTIONS | |||||||
STATUTORY FINANCIAL DATA AND RESTRICTIONS | 20. STATUTORY FINANCIAL DATA AND RESTRICTIONS | ||||||
The following table presents statutory net income (loss) and capital and surplus for our Non-Life Insurance Companies and our Life Insurance Companies in accordance with statutory accounting practices: | |||||||
(in millions) | 2014 | 2013 | 2012 | ||||
Years Ended December 31, | |||||||
Statutory net income (loss)(a)(b)(c): | |||||||
Non-Life Insurance Companies: | |||||||
Domestic | $ | 3,377 | $ | 11,440 | $ | 3,701 | |
Foreign | 1,200 | 842 | 1,100 | ||||
Total Non-Life Insurance Companies | 4,577 | 12,282 | 4,801 | ||||
Life Insurance Companies: | |||||||
Domestic | 2,690 | 5,047 | 3,827 | ||||
Foreign | -9 | -9 | -9 | ||||
Total Life Insurance Companies | 2,681 | 5,038 | 3,818 | ||||
At December 31, | |||||||
Statutory capital and surplus(a)(c): | |||||||
Non-Life Insurance Companies: | |||||||
Domestic | $ | 28,198 | $ | 27,685 | |||
Foreign | 12,540 | 12,022 | |||||
Total Non-Life Insurance Companies | 40,738 | 39,707 | |||||
Life Insurance Companies: | |||||||
Domestic | 8,642 | 15,038 | |||||
Foreign | 437 | 129 | |||||
Total Life Insurance Companies | 9,079 | 15,167 | |||||
Aggregate minimum required statutory capital and surplus: | |||||||
Non-Life Insurance Companies: | |||||||
Domestic | $ | 7,101 | $ | 7,019 | |||
Foreign | 9,147 | 9,078 | |||||
Total Non-Life Insurance Companies | 16,248 | 16,097 | |||||
Life Insurance Companies: | |||||||
Domestic | 3,821 | 4,287 | |||||
Foreign | 46 | 45 | |||||
Total Life Insurance Companies | 3,867 | 4,332 | |||||
(a) Excludes discontinued operations and other divested businesses. Statutory capital and surplus and net income (loss) with respect to foreign operations are as of November 30. | |||||||
(b) Non-Life Insurance Companies did not recognize material statutory gains related to legal entity simplification (restructuring) in 2014. Non-Life Insurance Companies include approximately $8.0 billion of recognized statutory gains related to legal entity simplification (restructuring) in 2013. These recognized gains were largely offset by reductions in unrealized gains; therefore, there was no material impact to total surplus. | |||||||
(c) In aggregate, the 2013 Non-Life Insurance Companies and Life Insurance Companies statutory net income (loss) and statutory capital and surplus amounts increased by $1.1 billion and $557 million, respectively, compared to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2013, due to finalization of statutory filings. | |||||||
Our insurance subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by domestic and foreign insurance regulatory authorities. The principal differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP for domestic companies are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, investment impairments are determined in accordance with statutory accounting practices, assets and liabilities are presented net of reinsurance, policyholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. | |||||||
For domestic insurance subsidiaries, aggregate minimum required statutory capital and surplus is based on the greater of the RBC level that would trigger regulatory action or minimum requirements per state insurance regulation. Capital and surplus requirements of our foreign subsidiaries differ from those prescribed in the U.S., and can vary significantly by jurisdiction. At both December 31, 2014 and 2013, all domestic and foreign insurance subsidiaries individually exceeded the minimum required statutory capital and surplus requirements and all domestic insurance subsidiaries individually exceeded RBC minimum required levels. | |||||||
At December 31, 2014 and 2013, the use of prescribed or permitted statutory accounting practices by our domestic and foreign insurance subsidiaries did not result in reported statutory surplus or risk-based capital that is significantly different from the statutory surplus or risk-based capital that would have been reported had NAIC statutory accounting practices or the prescribed regulatory accounting practices of their respective foreign regulatory authority been followed in all respects for domestic and foreign insurance entities. As described in Note 13, our domestic insurance subsidiaries domiciled in New York and Pennsylvania discount non-tabular workers’ compensation reserves based on the prescribed or approved regulations in each of those states. While these practices differ from applicable NAIC statutory accounting practices, such practices do not have a material impact on our statutory surplus and statutory net income (loss) or risk based capital. | |||||||
The NAIC Model Regulation “Valuation of Life Insurance Policies” (Regulation XXX) requires U.S. life insurers to establish additional statutory reserves for term life insurance policies with long-term premium guarantees and universal life policies with secondary guarantees (ULSGs). In addition, NAIC Actuarial Guideline 38 (Guideline AXXX) clarifies the application of Regulation XXX as to these guarantees, including certain ULSGs. | |||||||
Domestic insurance subsidiaries manage the capital impact of statutory reserve requirements under Regulation XXX and Guideline AXXX through intercompany reinsurance transactions. The affiliated life insurers providing reinsurance capacity for such transactions are fully licensed insurance companies and are not formed under captive insurance laws. Under one of these intercompany reinsurance arrangements, certain Regulation XXX and Guideline AXXX reserves related to new and in-force business are ceded to an affiliated U.S. life insurer, which is a licensed life insurer in the state of Missouri and an accredited reinsurer in the state of Texas. As an accredited reinsurer, this affiliated life insurer is not required to post any collateral such as letters of credit or assets in trust. | |||||||
Under the other intercompany reinsurance arrangement, certain Regulation XXX and Guideline AXXX reserves related to a closed block of in-force business are ceded to an affiliated off-shore life insurer, which is licensed as a class E insurer under Bermuda law. Bermuda law permits the off-shore life insurer to record an asset that effectively reduces the statutory reserves for the assumed reinsurance to the level that would be required under U.S. GAAP. Letters of credit are used to support the credit for reinsurance provided by the affiliated off-shore life insurer. The letters of credit are subject to reimbursement by AIG Parent in the event of a drawdown. See Note 8 for additional information regarding these letters of credit. | |||||||
Subsidiary Dividend Restrictions | |||||||
Payments of dividends to us by our insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities. With respect to our domestic insurance subsidiaries, the payment of any dividend requires formal notice to the insurance department in which the particular insurance subsidiary is domiciled. For example, unless permitted by the Superintendent of Financial Services, property casualty companies domiciled in New York generally may not pay dividends to shareholders that, in any 12-month period, exceed the lesser of 10 percent of such company’s statutory policyholders’ surplus or 100 percent of its “adjusted net investment income,” for the previous year, as defined. Generally, less severe restrictions applicable to both property casualty and life insurance companies exist in most of the other states in which our insurance subsidiaries are domiciled. Under the laws of many states, an insurer may pay a dividend without prior approval of the insurance regulator when the amount of the dividend is below certain regulatory thresholds. Other foreign jurisdictions may restrict the ability of our foreign insurance subsidiaries to pay dividends. Various other regulatory restrictions also limit cash loans and advances to us by our subsidiaries. | |||||||
Largely as a result of these restrictions, approximately $45.8 billion of the statutory capital and surplus of our consolidated insurance subsidiaries were restricted from transfer to AIG Parent without prior approval of state insurance regulators at December 31, 2014. | |||||||
To our knowledge, no AIG insurance company is currently on any regulatory or similar “watch list” with regard to solvency. | |||||||
Parent Company Dividend Restrictions | |||||||
Our ability to pay dividends has not been subject to any contractual restrictions since the cancellation of our Series G Preferred Stock in May 2011. See Note 17 herein for additional information about our ability to pay dividends to our shareholders. |
SHAREBASED_AND_OTHER_COMPENSAT
SHARE-BASED AND OTHER COMPENSATION PLANS | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SHARE-BASED AND OTHER COMPENSATION PLANS | ||||||||||
SHARE-BASED AND OTHER COMPENSATION PLANS | 21. SHARE-BASED AND OTHER COMPENSATION PLANS | |||||||||
The following table presents our share-based compensation expense: | ||||||||||
Years Ended December 31, | ||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||
Share-based compensation expense - pre-tax* | $ | 349 | $ | 457 | $ | 286 | ||||
Share-based compensation expense - after tax | 227 | 297 | 186 | |||||||
* For the years ended December 31, 2014, 2013 and 2012, $86 million, $315 million and $286 million of pre-tax compensation expense was attributed to unsettled liability-classified awards, the values of which are based on our share price at the reporting date. Our share price was $56.01, $51.05 and $35.30 at December 31, 2014, 2013 and 2012, respectively. In addition, we recognized $120 million and $101 million for immediately vested stock-settled awards issued to retirement eligible employees in 2014 and 2013, respectively. | ||||||||||
Employee Plans | ||||||||||
During 2014 and 2013, our employees were issued awards under the 2013 Long Term Incentive Plan, which is governed by the AIG 2013 Omnibus Incentive Plan (2013 Plan). The 2013 Plan replaced the AIG 2010 Stock Incentive Plan (2010 Plan) as of May 15, 2013, but does not affect the terms or conditions of any award issued under the 2010 Plan. The 2013 Plan is currently the only plan under which share-based awards can be made. | ||||||||||
As of December 31, 2014, the Starr International Company, Inc. Deferred Compensation Profit Participation Plans (the SICO Plans) are the only legacy plans for which share-settled awards remain unvested. | ||||||||||
Our share-settled awards are settled with previously acquired shares held in AIG’s treasury. Share awards made by SICO are settled by SICO. | ||||||||||
AIG 2013 Omnibus Incentive Plan | ||||||||||
The 2013 Plan was adopted at the 2013 Annual Meeting of Shareholders and provides for the grants of share-based awards to our employees and non-employee directors. The total number of shares that may be granted under the 2013 Plan (the reserve) is the sum of 1) 45 million shares of AIG Common Stock, plus 2) the number of authorized shares that remained available for issuance under the 2010 Plan when the 2013 Plan became effective, plus 3) the number of shares of AIG Common Stock relating to outstanding awards under the 2010 Plan at the time the 2013 Plan became effective that subsequently are forfeited, expired, terminated or otherwise lapse or are settled in cash. Each share-based unit granted under the 2013 Plan reduces the number of shares available for future grants by one share. However, shares with respect to awards that are forfeited, expired or settled for cash, and shares withheld for taxes on awards (other than options and stock appreciation rights (SARs) awards) are returned to the reserve. | ||||||||||
During 2014, performance share units (PSUs) and deferred stock units (DSUs) were granted under the 2013 Plan and 50,206,557 shares are available for future grants as of December 31, 2014. PSUs were issued for off-cycle grants, which are made from time to time during the year as sign-on awards to new hires or as a result of a change in employee status. | ||||||||||
AIG 2010 Stock Incentive Plan | ||||||||||
The 2010 Plan was adopted at the 2010 Annual Meeting of Shareholders. The total number of shares of AIG Common Stock that could be granted under the 2010 Plan was 60 million. During 2013 and 2012, we granted PSUs, DSUs, and restricted stock units (RSUs), under the 2010 Plan. Each PSU, DSU, and RSU, awarded reduced the number of shares available for future grants by one share. Subsequent to the adoption of the 2013 Plan in May 2013, no additional grants were made under the 2010 Plan. | ||||||||||
Share-settled Awards | ||||||||||
AIG 2013 Long Term Incentive Plan | ||||||||||
The 2013 Long Term Incentive Plan (2013 LTIP), adopted in March 2013, provides for the annual grant of PSUs to certain employees, including our senior executive officers and other highly compensated employees. Each recipient of an award is granted a number of PSUs (the target) that provides the opportunity to receive shares of AIG Common Stock based on AIG achieving specified performance goals at the end of a three-year performance period. These performance goals are pre-established by AIG’s Compensation and Management Resources Committee for each annual grant and may differ from year to year. The actual number of PSUs earned can vary from zero to 150 percent of the target depending on AIG’s performance relative to a specified peer group. Vesting occurs in three equal installments beginning on January 1 of the year immediately following the end of a performance period and January 1 of each of the next two years. Dividends do not accrue on unvested PSUs or underlying shares. Recipients must be employed at each vesting date to be entitled to share delivery, except upon the occurrence of an accelerated vesting event, such as an involuntary termination without cause, disability, or retirement during the vesting period. | ||||||||||
SICO Plans | ||||||||||
The SICO Plans provide that shares of AIG Common Stock currently held by SICO are set aside for the benefit of the participant and distributed upon retirement. The SICO Board of Directors currently may permit an early payout of shares under certain circumstances. Prior to payout, the participant is not entitled to vote, dispose of or receive dividends with respect to such shares, and shares are subject to forfeiture under certain conditions, including but not limited to the participant’s termination of employment with us prior to normal retirement age. A significant portion of the awards under the SICO Plans vest the year after the participant reaches age 65, provided that the participant remains employed by us through age 65. The portion of the awards for which early payout is available vests on the applicable payout date. | ||||||||||
SICO Plan awards issued in the form of restricted stock were valued based on the closing price of AIG’s Common Stock on the grant date. Although none of the costs of the various benefits provided under the SICO Plans have been paid by us, we have recorded compensation expense for the deferred compensation amounts payable to our employees by SICO, with an offsetting amount credited to Additional paid-in capital reflecting amounts deemed contributed by SICO. | ||||||||||
Non-Employee Plans | ||||||||||
Our non-employee directors, who serve on our Board of Directors, receive share-based compensation in the form of fully vested deferred stock units (DSUs) with delivery deferred until retirement from the Board. In 2014 and 2013, we granted to non-employee directors 28,477 and 25,735 DSUs, respectively, under the 2013 Plan and recognized expense of $1.5 million and $1.2 million, respectively; in 2012, we granted 19,434 DSUs, under the 2010 Plan and recognized $0.6 million of expense. | ||||||||||
Performance Share Unit Valuation | ||||||||||
The performance goals for long-term incentive awards granted in 2014 are AIG’s total shareholder return (TSR) and change in credit default swap (CDS) spread, weighted 75 percent and 25 percent, respectively, in each case relative to a specified peer group. The goals for the 2013 awards are AIG’s growth in tangible book value per share (TBVPS) (excluding accumulated other comprehensive income) and TSR, weighted 50 percent each, in each case relative to a specified peer group. The fair value of PSUs to be earned based on AIG’s achieving growth in TBVPS and change in CDS spreads was based on the closing price of AIG Common Stock on the grant date, discounted by the present value of estimated dividends to be paid during the respective vesting periods. The fair value of PSUs to be earned based on AIG’s TSR relative to a specified peer group was determined on the grant date using a Monte Carlo simulation. | ||||||||||
The following table presents the assumptions used to estimate the fair value of PSUs based on AIG’s TSR: | ||||||||||
2014 | 2013 | |||||||||
Expected dividend yield(a) | 1.13 | % | 0.38 | % | ||||||
Expected volatility(b) | 23.66 | % | 30.79 | % | ||||||
Risk-free interest rate(c) | 0.76 | % | 0.5 | % | ||||||
(a) The dividend yield is the projected annualized AIG dividend yield estimated by Bloomberg Professional service as of the valuation date. | ||||||||||
(b) The expected volatility is based on the implied volatilities of actively traded stock options from the valuation date through the end of the PSU performance period as estimated by Bloomberg Professional service. | ||||||||||
(c) The risk-free interest rate is the continuously compounded interest rate for the term between the valuation date and the end of the performance period that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the valuation date | ||||||||||
The following table summarizes outstanding share-settled awards(a): | ||||||||||
Weighted Average | ||||||||||
Number of PSUs(b)/Shares | Grant-Date Fair Value | |||||||||
As of or for the Year | AIG | SICO | AIG | SICO | ||||||
Ended December 31, 2014 | Plans | Plans | Plans | Plans | ||||||
Unvested, beginning of year | 5,195,408 | 85,949 | $ | 36.92 | $ | 1,195.05 | ||||
Granted | 6,882,136 | - | 48.5 | - | ||||||
Vested | -3,566,014 | -23,494 | 45.21 | 85.6 | ||||||
Forfeited | -408,821 | -4,143 | 41.59 | 1,181.04 | ||||||
Unvested, end of year | 8,102,709 | 58,312 | $ | 42.89 | $ | 1,191.01 | ||||
(a) Excludes DSUs and options, which are discussed under the Non-Employee Plans and Stock Options sections, respectively. | ||||||||||
(b) Represents target number of PSUs granted, and does not reflect potential increases or decreases that could result from the final outcome of the performance goals to be determined after the applicable performance period ends. | ||||||||||
At December 31, 2014, the total unrecognized compensation cost (net of expected forfeitures) for the unvested PSUs and unvested restricted stock was $185 million and $19 million, respectively, and the weighted-average and expected period of years over which those costs are expected to be recognized are 1.28 years and 4 years for the PSUs, and 5.28 years and 25 years for the restricted stock, respectively. | ||||||||||
Stock Options | ||||||||||
Options granted under the AIG 2007 Stock Incentive Plan and the 1999 Stock Option Plan generally vested over four years (25 percent vesting per year) and expire 10 years from the date of grant. All outstanding options are vested and out of the money at December 31, 2014. There were no stock options granted since 2008. The aggregate intrinsic value for all unexercised options is zero. | ||||||||||
The following table provides a roll forward of stock option activity: | ||||||||||
Weighted | ||||||||||
Average | ||||||||||
Remaining | ||||||||||
Weighted Average | Contractual | |||||||||
As of or for the Year Ended December 31, 2014 | Shares | Exercise Price | Life | |||||||
Options: | ||||||||||
Exercisable at beginning of year | 289,790 | $ | 1,113.99 | 2.58 | ||||||
Expired | -87,515 | $ | 1,290.22 | |||||||
Exercisable at end of year | 202,275 | $ | 1,037.74 | 2.17 | ||||||
Cash-settled Awards | ||||||||||
Share-based cash-settled awards are recorded as liabilities until the final payout is made or the award is replaced with a stock-settled award. Compensation expense is recognized over the vesting periods, unless the award is fully vested on the grant date in which case the entire award value is immediately recognized as expense. | ||||||||||
Unlike stock-settled awards, which generally have a fixed grant-date fair value (unless the award is subsequently modified), the fair value of unsettled or unvested cash-settled awards is remeasured at the end of each reporting period based on the change in fair value of one share of AIG Common Stock. The liability and corresponding expense are adjusted accordingly until the award is settled. | ||||||||||
During the period we were subject to Troubled Asset Relief Program (TARP) restrictions, we issued various cash-settled share-based grants, including Stock Salary, TARP RSU awards, and other cash-settled RSU awards, to certain of our most highly compensated employees and executive officers in the form of restricted stock units that were either fully vested with payment deferred, or subject to specified service and performance conditions. After the repayment of our TARP obligations in December 2012, all performance conditions were satisfied; as a result, we no longer issue awards that are subject to TARP restrictions. | ||||||||||
Restricted Stock Units | ||||||||||
Stock Salary Awards | ||||||||||
Stock Salary was earned and accrued at the same time or times as the salary would otherwise be paid in cash and is generally settled in installments on the first, second or third anniversary of grant in accordance with the terms of an employee’s award. Stock Salary grants were generally issued in the form of fully vested RSUs and are settled in cash based on the value of AIG Common Stock on the applicable settlement date. During 2014, 2013 and 2012, we paid $89 million, $180 million and $111 million, respectively, to settle awards. For those awards that were vested and unsettled at the end of each year, we recognized charges of $7 million, $73 million and $173 million in compensation expense for the years ended December 31, 2014, 2013 and 2012, respectively, to reflect fluctuations in the value of AIG Common Stock. At December 31, 2014, the number of vested but unsettled RSUs totaled 742,317. | ||||||||||
TARP and Other RSUs | ||||||||||
TARP RSUs awarded require the achievement of objective performance metrics as a condition to entitlement. An award would have been settled in 25 percent installments in proportion to the repayment of our TARP obligations. As a result of the repayment of our TARP obligations in December 2012, outstanding awards vest and settle in two 50 percent installments on the second and third anniversary of the date of grant, along with other cash-settled RSUs granted and issued in March 2013 and 2012. | ||||||||||
Long Term Incentive Plans | ||||||||||
Certain employees were provided the opportunity to receive additional compensation in the form of cash and cash-settled SARs under the 2011 LTIP or 100 percent cash for the 2012 LTIP if certain performance measures were met. The ultimate value of these awards was contingent on AIG achieving performance measures over a two-year performance period and such value could range from zero to twice the target amount. Subsequent to the performance period, the earned awards were subject to an additional time-vesting period. This results in a graded vesting schedule for the cash portion of up to two years, while the SARs portion cliff-vests two years after the end of performance period. | ||||||||||
The cash portion of the awards expensed in 2014, 2013 and 2012 totaled approximately $57 million, $249 million, and $189 million, respectively. | ||||||||||
The following table presents a roll forward of SARs and cash-settled RSUs (excluding stock salary) as well as the related expenses: | ||||||||||
Number of Units | ||||||||||
Year Ended December 31, 2014 | TARP RSUs(a) | Other RSUs(b) | SARs(d) | |||||||
Unvested, beginning of year | 857,579 | 1,563,687 | 8,966,246 | |||||||
Granted | - | - | - | |||||||
Vested(c) | -529,049 | -382,468 | -5,521,171 | |||||||
Forfeited | -89,417 | -15,687 | -160,166 | |||||||
Unvested, end of year | 239,113 | 1,165,532 | 3,284,909 | |||||||
Net compensation expense for the year (in millions) | $ | 12 | $ | 31 | $ | 36 | ||||
(a) Total unrecognized compensation and the weighted-average period for which it will be recognized is $3 million and 0.55 year, respectively. | ||||||||||
(b) Total unrecognized compensation and the weighted-average period for which it will be recognized is $13 million and 0.61 year, respectively. | ||||||||||
(c) Also includes SARs for which vesting was accelerated for employees who became retirement eligible or were deceased. | ||||||||||
(d) The ending balance represents awards granted under the 2011 LTIP that vested on January 1, 2015 and were automatically exercised. The value of a SAR as of December 31, 2014 was determined based on the excess of the fair value (as defined) of one share of AIG Common Stock over the strike price of $37.40; the fair value was $55.29 based on the average of the closing sale prices on each trading day during the month of December 2014 in accordance with the plan provisions. No SARs are outstanding after January 1, 2015. |
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
EMPLOYEE BENEFITS | ||||||||||||||||||||||||||||
EMPLOYEE BENEFITS | 22. EMPLOYEE BENEFITS | |||||||||||||||||||||||||||
Pension Plans | ||||||||||||||||||||||||||||
We offer various defined benefit plans to eligible employees. | ||||||||||||||||||||||||||||
The U.S. AIG Retirement Plan (the qualified plan) is a noncontributory defined benefit plan, that is subject to the provisions of ERISA. U.S. salaried employees who are employed by a participating company and who have completed 12 months of continuous service are eligible to participate in the plan. Effective April 1, 2012, the qualified plan was converted to a cash balance formula comprised of pay credits based on six percent of a plan participant’s annual compensation (subject to IRS limitations) and annual interest credits. In addition, employees can take their vested benefits when they leave AIG as a lump sum or an annuity option after completing at least three years of service. However, employees satisfying certain age and service requirements (i.e. grandfathered employees) remain covered under the old plan formula, which is based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Grandfathered employees will receive the higher of the benefits under the cash balance or final average pay formula at retirement. Non-U.S. defined benefit plans are generally either based on the employee’s years of credited service and compensation in the years preceding retirement or on points accumulated based on the employee’s job grade and other factors during each year of service. | ||||||||||||||||||||||||||||
In the U.S. we also sponsor several non-qualified unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by the qualified plan. These include the AIG Non-Qualified Retirement Income Plan (AIG NQRIP), which provides a benefit equal to the reduction in benefits under the qualified plan as a result of federal tax limitations on compensation and benefits payable, and the Supplemental Executive Retirement Plan (SERP), which provides additional retirement benefits to designated executives. Under the SERP, an annual benefit accrues at a percentage of final average pay multiplied by each year of credited service, not greater than 60 percent of final average pay, reduced by any benefits from the current and any predecessor retirement plans (including the AIG NQRIP), Social Security, and any benefits accrued under a Company sponsored foreign deferred compensation plan. | ||||||||||||||||||||||||||||
Postretirement Plans | ||||||||||||||||||||||||||||
We also provide postretirement medical care and life insurance benefits in the U.S. and in certain non-U.S. countries. Eligibility in the various plans is generally based upon completion of a specified period of eligible service and attaining a specified age. Overseas, benefits vary by geographic location. | ||||||||||||||||||||||||||||
U.S. postretirement medical and life insurance benefits are based upon the employee attaining the age of 55 and having a minimum of ten years of service. Eligible employees who have medical coverage can enroll in retiree medical upon termination of employment. Medical benefits are contributory, while the life insurance benefits are generally non-contributory. Retiree medical contributions vary from none for pre-1989 retirees to actual premium payments reduced by certain subsidies for post-1992 retirees. These contributions are subject to adjustment annually. Other cost sharing features of the medical plan include deductibles, coinsurance and Medicare coordination. Effective April 1, 2012, the retiree medical employer subsidy for the AIG Postretirement plan was eliminated for employees who were not grandfathered. Additionally, new employees hired after December 31, 2012 are not eligible for retiree life insurance. | ||||||||||||||||||||||||||||
The following table presents the funded status of the plans reconciled to the amount reported in the Consolidated Balance Sheets. The measurement date for most of the non-U.S. defined benefit pension and postretirement plans is November 30, consistent with the fiscal year end of the sponsoring companies. For all other plans, measurement occurs as of December 31. | ||||||||||||||||||||||||||||
As of or for the Years Ended | Pension | Postretirement(a) | ||||||||||||||||||||||||||
December 31, | U.S. Plans(b) | Non-U.S. Plans(b) | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Change in projected benefit obligation: | ||||||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 4,882 | $ | 5,161 | $ | 1,072 | $ | 1,205 | $ | 217 | $ | 255 | $ | 52 | $ | 66 | ||||||||||||
Service cost | 173 | 205 | 42 | 47 | 4 | 5 | 2 | 3 | ||||||||||||||||||||
Interest cost | 228 | 201 | 29 | 29 | 9 | 8 | 2 | 2 | ||||||||||||||||||||
Actuarial (gain) loss | 780 | -454 | 114 | 13 | 10 | -41 | 11 | -15 | ||||||||||||||||||||
Benefits paid: | ||||||||||||||||||||||||||||
AIG assets | -15 | -14 | -15 | -13 | -11 | -10 | -1 | -1 | ||||||||||||||||||||
Plan assets | -279 | -217 | -24 | -27 | - | - | - | - | ||||||||||||||||||||
Plan amendment | - | - | -1 | - | - | - | - | - | ||||||||||||||||||||
Curtailments | - | - | - | -1 | - | - | - | -3 | ||||||||||||||||||||
Settlements | - | - | -9 | -35 | - | - | - | - | ||||||||||||||||||||
Foreign exchange effect | - | - | -107 | -126 | - | - | -2 | -1 | ||||||||||||||||||||
Other | - | - | -2 | -20 | - | - | - | 1 | ||||||||||||||||||||
Projected benefit obligation, end of year | $ | 5,769 | $ | 4,882 | $ | 1,099 | $ | 1,072 | $ | 229 | $ | 217 | $ | 64 | $ | 52 | ||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||||
Fair value of plan assets, beginning | ||||||||||||||||||||||||||||
of year | $ | 4,024 | $ | 3,720 | $ | 738 | $ | 727 | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Actual return on plan assets, net of expenses | 266 | 520 | 71 | 92 | - | - | - | - | ||||||||||||||||||||
AIG contributions | 115 | 15 | 67 | 87 | 11 | 10 | 1 | 1 | ||||||||||||||||||||
Benefits paid: | ||||||||||||||||||||||||||||
AIG assets | -15 | -14 | -15 | -13 | -11 | -10 | -1 | -1 | ||||||||||||||||||||
Plan assets | -279 | -217 | -24 | -27 | - | - | - | - | ||||||||||||||||||||
Settlements | - | - | -8 | -35 | - | - | - | - | ||||||||||||||||||||
Foreign exchange effect | - | - | -75 | -93 | - | - | - | - | ||||||||||||||||||||
Other | - | - | -46 | - | - | - | - | - | ||||||||||||||||||||
Fair value of plan assets, end of year | $ | 4,111 | $ | 4,024 | $ | 708 | $ | 738 | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Funded status, end of year | $ | -1,658 | $ | -858 | $ | -391 | $ | -334 | $ | -229 | $ | -217 | $ | -64 | $ | -52 | ||||||||||||
Amounts recognized in the balance | ||||||||||||||||||||||||||||
sheet: | ||||||||||||||||||||||||||||
Assets | $ | - | $ | - | $ | 46 | $ | 91 | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Liabilities | -1,658 | -858 | -437 | -425 | -229 | -217 | -64 | -52 | ||||||||||||||||||||
Total amounts recognized | $ | -1,658 | $ | -858 | $ | -391 | $ | -334 | $ | -229 | $ | -217 | $ | -64 | $ | -52 | ||||||||||||
Pre-tax amounts recognized in Accumulated | ||||||||||||||||||||||||||||
other comprehensive income: | ||||||||||||||||||||||||||||
Net gain (loss) | $ | -1,667 | $ | -908 | $ | -227 | $ | -204 | $ | -9 | $ | 1 | $ | -8 | $ | 3 | ||||||||||||
Prior service credit | 200 | 234 | 11 | 14 | 24 | 35 | 1 | 1 | ||||||||||||||||||||
Total amounts recognized | $ | -1,467 | $ | -674 | $ | -216 | $ | -190 | $ | 15 | $ | 36 | $ | -7 | $ | 4 | ||||||||||||
(a) We do not currently fund postretirement benefits. | ||||||||||||||||||||||||||||
(b) Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $325 million and $276 million for the U.S. and $295 million and $265 million for the non-U.S. at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
The following table presents the accumulated benefit obligations for U.S. and non-U.S. pension benefit plans: | ||||||||||||||||||||||||||||
At December 31, | ||||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||||||
U.S. pension benefit plans | $ | 5,601 | $ | 4,683 | ||||||||||||||||||||||||
Non-U.S. pension benefit plans | $ | 1,040 | $ | 1,000 | ||||||||||||||||||||||||
Defined benefit plan obligations in which the projected benefit obligation was in excess of the related plan assets and the accumulated benefit obligation was in excess of the related plan assets were as follows: | ||||||||||||||||||||||||||||
At December 31, | PBO Exceeds Fair Value of Plan Assets | ABO Exceeds Fair Value of Plan Assets | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Projected benefit obligation | $ | 5,769 | $ | 4,882 | $ | 843 | $ | 806 | $ | 5,769 | $ | 4,882 | $ | 757 | $ | 752 | ||||||||||||
Accumulated benefit obligation | 5,601 | 4,683 | 746 | 704 | 5,601 | 4,683 | 740 | 703 | ||||||||||||||||||||
Fair value of plan assets | 4,111 | 4,024 | 342 | 330 | 4,111 | 4,024 | 329 | 327 | ||||||||||||||||||||
The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits: | ||||||||||||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||||||
Service cost | $ | 173 | $ | 205 | $ | 154 | $ | 42 | $ | 47 | $ | 53 | $ | 4 | $ | 5 | $ | 5 | $ | 2 | $ | 3 | $ | 3 | ||||
Interest cost | 228 | 201 | 200 | 29 | 29 | 34 | 9 | 8 | 11 | 2 | 2 | 2 | ||||||||||||||||
Expected return on assets | -288 | -257 | -240 | -22 | -19 | -20 | - | - | - | - | - | - | ||||||||||||||||
Amortization of prior service credit | -33 | -33 | -33 | -3 | -3 | -4 | -11 | -11 | -10 | - | - | - | ||||||||||||||||
Amortization of net loss | 42 | 138 | 118 | 7 | 13 | 13 | - | 1 | - | - | - | - | ||||||||||||||||
Curtailment (gain) loss | - | - | -2 | 1 | -1 | 1 | - | - | - | - | -2 | -1 | ||||||||||||||||
Settlement loss | - | - | - | - | 5 | 4 | - | - | - | - | - | - | ||||||||||||||||
Other | - | - | - | - | 1 | - | - | - | - | - | - | - | ||||||||||||||||
Net periodic benefit cost | $ | 122 | $ | 254 | $ | 197 | $ | 54 | $ | 72 | $ | 81 | $ | 2 | $ | 3 | $ | 6 | $ | 4 | $ | 3 | $ | 4 | ||||
Total recognized in Accumulated other comprehensive income (loss) | $ | -793 | $ | 823 | $ | -250 | $ | -40 | $ | 103 | $ | -36 | $ | -21 | $ | 30 | $ | -23 | $ | -11 | $ | 16 | $ | -11 | ||||
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ | -915 | $ | 569 | $ | -447 | $ | -94 | $ | 31 | $ | -117 | $ | -23 | $ | 27 | $ | -29 | $ | -15 | $ | 13 | $ | -15 | ||||
The estimated net loss and prior service credit that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $141 million and $35 million, respectively, for our combined defined benefit pension plans. For the defined benefit postretirement plans, the estimated amortization from Accumulated other comprehensive income for net loss and prior service credit that will be amortized into net periodic benefit cost over the next fiscal year is a $10 million credit in the aggregate. | ||||||||||||||||||||||||||||
The annual pension expense in 2015 for the AIG U.S. and non-U.S. defined benefit pension plans is expected to be approximately $289 million. A 100 basis point increase in the discount rate or expected long-term rate of return would decrease the 2015 expense by approximately $95 million and $47 million, respectively, with all other items remaining the same. Conversely, a 100 basis point decrease in the discount rate or expected long-term rate of return would increase the 2015 expense by approximately $104 million and $47 million, respectively, with all other items remaining the same. | ||||||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||||||
The following table summarizes the weighted average assumptions used to determine the benefit obligations: | ||||||||||||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans* | U.S. Plans | Non-U.S. Plans* | |||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Discount rate | 3.94 | % | 2.33 | % | 3.78 | % | 4.04 | % | ||||||||||||||||||||
Rate of compensation increase | 3.4 | % | 2.89 | % | N/A | 3.29 | % | |||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Discount rate | 4.83 | % | 2.77 | % | 4.59 | % | 4.77 | % | ||||||||||||||||||||
Rate of compensation increase | 3.5 | % | 2.89 | % | N/A | 3.34 | % | |||||||||||||||||||||
* The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits. | ||||||||||||||||||||||||||||
The following table summarizes assumed health care cost trend rates for the U.S. plans: | ||||||||||||||||||||||||||||
At December 31, | 2014 | 2013 | ||||||||||||||||||||||||||
Following year: | ||||||||||||||||||||||||||||
Medical (before age 65) | 7.07% | 7.21% | ||||||||||||||||||||||||||
Medical (age 65 and older) | 6.75% | 6.80% | ||||||||||||||||||||||||||
Ultimate rate to which cost increase is assumed to decline | 4.50% | 4.50% | ||||||||||||||||||||||||||
Year in which the ultimate trend rate is reached: | ||||||||||||||||||||||||||||
Medical (before age 65) | 2027 | 2027 | ||||||||||||||||||||||||||
Medical (age 65 and older) | 2027 | 2027 | ||||||||||||||||||||||||||
A one percent point change in the assumed healthcare cost trend rate would have the following effect on our postretirement benefit obligations: | ||||||||||||||||||||||||||||
One Percent | One Percent | |||||||||||||||||||||||||||
At December 31, | Increase | Decrease | ||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
U.S. plans | $ | 5 | $ | 6 | $ | -5 | $ | -3 | ||||||||||||||||||||
Non-U.S. plans | $ | 12 | $ | 11 | $ | -12 | $ | -7 | ||||||||||||||||||||
Our postretirement plans provide benefits primarily in the form of defined employer contributions rather than defined employer benefits. Changes in the assumed healthcare cost trend rate have a minimal impact for U.S. plans because for post-1992 retirees, benefits are fixed dollar amounts based on service at retirement. Our non-U.S. postretirement plans are not subject to caps. | ||||||||||||||||||||||||||||
The following table presents the weighted average assumptions used to determine the net periodic benefit costs: | ||||||||||||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||||||||||
At December 31, | U.S. Plans | Non-U.S. Plans* | U.S. Plans | Non-U.S. Plans* | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Discount rate | 4.83 | % | 2.77 | % | 4.59 | % | 4.77 | % | ||||||||||||||||||||
Rate of compensation increase | 3.5 | % | 2.89 | % | N/A | 3.34 | % | |||||||||||||||||||||
Expected return on assets | 7.25 | % | 2.93 | % | N/A | N/A | ||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Discount rate | 3.93 | % | 2.62 | % | 3.67 | % | 3.45 | % | ||||||||||||||||||||
Rate of compensation increase | 4 | % | 2.86 | % | N/A | 3.55 | % | |||||||||||||||||||||
Expected return on assets | 7.25 | % | 2.6 | % | N/A | N/A | ||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||
Discount rate | 4.62 | % | 3.02 | % | 4.51 | % | 4.19 | % | ||||||||||||||||||||
Rate of compensation increase | 4 | % | 2.94 | % | N/A | 3.61 | % | |||||||||||||||||||||
Expected return on assets | 7.25 | % | 2.91 | % | N/A | N/A | ||||||||||||||||||||||
* The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits. | ||||||||||||||||||||||||||||
Discount Rate Methodology | ||||||||||||||||||||||||||||
The projected benefit cash flows under the U.S. AIG Retirement plan were discounted using the spot rates derived from the Mercer Pension Discount Yield Curve at December 31, 2014 and 2013, which resulted in a single discount rate that would produce the same liability at the respective measurement dates. The discount rates were 3.95 percent at December 31, 2014 and 4.84 percent at December 31, 2013. The methodology was consistently applied for the respective years in determining the discount rates for the other U.S. plans. | ||||||||||||||||||||||||||||
In general, the discount rates for non-U.S. pension plans were developed based on the duration of liabilities on a plan by plan basis and were selected by reference to high quality corporate bonds in developed markets or local government bonds where developed markets are not as robust or are nonexistent. | ||||||||||||||||||||||||||||
The projected benefit obligation for Japan represents approximately 47 percent and 51 percent of the total projected benefit obligations for our non-U.S. pension plans at December 31, 2014 and 2013, respectively. The weighted average discount rate of 1.22 percent and 1.39 percent at December 31, 2014 and 2013 respectively for Japan was selected by reference to the AA rated corporate bonds reported by Rating and Investment Information, Inc. based on the duration of the plans’ liabilities. | ||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||
The investment strategy with respect to assets relating to our U.S. and non-U.S. pension plans is designed to achieve investment returns that will (a) provide for the benefit obligations of the plans over the long term (b) limit the risk of short-term funding shortfalls and (c) maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including but not limited to, volatility relative to the benefit obligations, diversification and concentration, and the risk and rewards profile applicable to each asset class. The assessment of the expected rate of return for all our plans is long-term and thus is not expected to change annually; however, significant changes in investment strategy or economic conditions may warrant such a change. | ||||||||||||||||||||||||||||
There were no shares of AIG Common Stock included in the U.S. and non-U.S. pension plans assets at December 31, 2014 or 2013. | ||||||||||||||||||||||||||||
U.S. Pension Plan | ||||||||||||||||||||||||||||
The long-term strategic asset allocation is reviewed and revised approximately every three years. The plan’s assets are monitored by the investment committee and actively managed by the investment managers, which includes allocating the plan’s assets among approved asset classes within pre-approved ranges permitted by the strategic allocation. | ||||||||||||||||||||||||||||
The following table presents the asset allocation percentage by major asset class for the U.S. qualified plan and the target allocation: | ||||||||||||||||||||||||||||
Target | Actual | Actual | ||||||||||||||||||||||||||
At December 31, | 2015 | 2014 | 2013 | |||||||||||||||||||||||||
Asset class: | ||||||||||||||||||||||||||||
Equity securities | 42 | % | 55 | % | 56 | % | ||||||||||||||||||||||
Fixed maturity securities | 27 | % | 28 | % | 25 | % | ||||||||||||||||||||||
Other investments | 31 | % | 17 | % | 19 | % | ||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||
The expected long-term rate of return for the plan was 7.25 percent for both 2014 and 2013. The expected rate of return is an aggregation of expected returns within each asset class category and incorporates the current and target asset allocations. The combination of the expected asset return and any contributions made by us are expected to maintain the plan’s ability to meet all required benefit obligations. The expected asset return for each asset class was developed based on an approach that considers key fundamental drivers of the asset class returns in addition to historical returns, current market conditions, asset volatility and the expectations for future market returns. | ||||||||||||||||||||||||||||
Non-U.S. Pension Plans | ||||||||||||||||||||||||||||
The assets of the non-U.S. pension plans are held in various trusts in multiple countries and are invested primarily in equities and fixed maturity securities to maximize the long-term return on assets for a given level of risk. | ||||||||||||||||||||||||||||
The following table presents the asset allocation percentage by major asset class for Non-U.S. pension plans and the target allocation: | ||||||||||||||||||||||||||||
Target | Actual | Actual | ||||||||||||||||||||||||||
At December 31, | 2015 | 2014 | 2013 | |||||||||||||||||||||||||
Asset class: | ||||||||||||||||||||||||||||
Equity securities | 35 | % | 50 | % | 45 | % | ||||||||||||||||||||||
Fixed maturity securities | 45 | % | 35 | % | 37 | % | ||||||||||||||||||||||
Other investments | 19 | % | 8 | % | 6 | % | ||||||||||||||||||||||
Cash and cash equivalents | 1 | % | 7 | % | 12 | % | ||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||
The assets of AIG’s Japan pension plans represent approximately 55 percent and 60 percent of total non-U.S. assets at December 31, 2014 and 2013 respectively. The expected long term rate of return was 1.24 percent and 1.15 percent, for 2014 and 2013, respectively, and is evaluated by the Japanese Pension Investment Committee on a quarterly and annual basis along with various investment managers, and is revised to achieve the optimal allocation to meet targeted funding levels if necessary. In addition, the funding policy is revised in accordance with local regulation every five years. | ||||||||||||||||||||||||||||
The expected weighted average long-term rate of return for all our non-U.S. pension plans was 2.93 percent and 2.60 percent for the years ended December 31, 2014 and 2013, respectively. It is an aggregation of expected returns within each asset class that was generally developed based on the building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns. | ||||||||||||||||||||||||||||
Assets Measured at Fair Value | ||||||||||||||||||||||||||||
The following table presents information about our plan assets and indicates the level of the fair value measurement based on the observability of the inputs used. The inputs and methodology used in determining the fair value of these assets are consistent with those used to measure our assets as discussed in Note 5 herein. | ||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
At December 31, 2014 | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 80 | $ | - | $ | - | $ | 80 | $ | 50 | $ | - | $ | - | $ | 50 | ||||||||||||
Equity securities: | ||||||||||||||||||||||||||||
U.S.(a) | 1,244 | 239 | - | 1,483 | 30 | - | - | 30 | ||||||||||||||||||||
International(b) | 787 | 1 | - | 788 | 274 | 48 | - | 322 | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||
U.S. investment grade(c) | - | 768 | 8 | 776 | - | - | - | - | ||||||||||||||||||||
International investment grade(c) | - | - | - | - | 2 | 160 | - | 162 | ||||||||||||||||||||
U.S. and international high yield(d) | - | 347 | - | 347 | - | 61 | - | 61 | ||||||||||||||||||||
Mortgage and other asset-backed | ||||||||||||||||||||||||||||
securities(e) | - | 6 | - | 6 | - | - | - | - | ||||||||||||||||||||
Other fixed maturity securities | - | - | - | - | - | 10 | 17 | 27 | ||||||||||||||||||||
Other investment types: | ||||||||||||||||||||||||||||
Hedge funds(f) | - | 337 | 36 | 373 | - | - | - | - | ||||||||||||||||||||
Futures | 4 | - | - | 4 | - | - | - | - | ||||||||||||||||||||
Private equity(g) | - | - | 228 | 228 | - | - | - | - | ||||||||||||||||||||
Insurance contracts | - | 26 | - | 26 | - | - | 56 | 56 | ||||||||||||||||||||
Total | $ | 2,115 | $ | 1,724 | $ | 272 | $ | 4,111 | $ | 356 | $ | 279 | $ | 73 | $ | 708 | ||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 137 | $ | - | $ | - | $ | 137 | $ | 92 | $ | - | $ | - | $ | 92 | ||||||||||||
Equity securities: | ||||||||||||||||||||||||||||
U.S.(a) | 1,840 | 220 | - | 2,060 | 26 | - | - | 26 | ||||||||||||||||||||
International(b) | 189 | 18 | - | 207 | 254 | 47 | - | 301 | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||
U.S. investment grade(c) | - | 702 | 9 | 711 | - | - | - | - | ||||||||||||||||||||
International investment grade(c) | - | - | - | - | 1 | 163 | - | 164 | ||||||||||||||||||||
U.S. and international high yield(d) | - | 281 | - | 281 | - | 82 | - | 82 | ||||||||||||||||||||
Mortgage and other asset-backed | ||||||||||||||||||||||||||||
securities(e) | - | 7 | - | 7 | - | - | - | - | ||||||||||||||||||||
Other fixed maturity securities | - | - | - | - | - | 10 | 19 | 29 | ||||||||||||||||||||
Other investment types: | ||||||||||||||||||||||||||||
Hedge funds(f) | - | 297 | 35 | 332 | - | - | - | - | ||||||||||||||||||||
Futures | 14 | - | - | 14 | - | - | - | - | ||||||||||||||||||||
Private equity(g) | - | - | 248 | 248 | - | - | - | - | ||||||||||||||||||||
Insurance contracts | - | 27 | - | 27 | - | - | 44 | 44 | ||||||||||||||||||||
Total | $ | 2,180 | $ | 1,552 | $ | 292 | $ | 4,024 | $ | 373 | $ | 302 | $ | 63 | $ | 738 | ||||||||||||
(a) Includes index funds that primarily track several indices including S&P 500 and S&P Small Cap 600 as well as other actively managed accounts composed of investments in large cap companies. | ||||||||||||||||||||||||||||
(b) Includes investments in companies in emerging and developed markets. | ||||||||||||||||||||||||||||
(c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. | ||||||||||||||||||||||||||||
(d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade. | ||||||||||||||||||||||||||||
(e) Comprised primarily of investments in U.S. government agency or U.S. government sponsored agency bonds. | ||||||||||||||||||||||||||||
(f) Includes funds composed of macro, event driven, long/short equity, and controlled risk hedge fund strategies and a separately managed controlled risk strategy. | ||||||||||||||||||||||||||||
(g) Includes funds that are diverse by geography, investment strategy, sector and vintage year. | ||||||||||||||||||||||||||||
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we had no significant concentrations of risks at December 31, 2014. | ||||||||||||||||||||||||||||
The U.S. pension plan holds a group annuity contract with U.S. Life, one of our subsidiaries, which totaled $26 million and $27 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
Changes in Level 3 fair value measurements | ||||||||||||||||||||||||||||
The following table presents changes in our U.S. and non-U.S. Level 3 plan assets measured at fair value: | ||||||||||||||||||||||||||||
Changes in | ||||||||||||||||||||||||||||
Net | Unrealized Gains | |||||||||||||||||||||||||||
Balance | Realized and | Balance | (Losses) on | |||||||||||||||||||||||||
At December 31, 2014 | Beginning | Unrealized | Transfers | Transfers | at End | Instruments Held | ||||||||||||||||||||||
(in millions) | of year | Gains (Losses) | Purchases | Sales | Issuances | Settlements | In | Out | of year | at End of year | ||||||||||||||||||
U.S. Plan Assets: | ||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||
U.S. investment grade | $ | 9 | $ | 2 | $ | 18 | $ | -21 | $ | - | $ | - | $ | - | $ | - | $ | 8 | $ | 1 | ||||||||
Hedge funds | 35 | 3 | 15 | -32 | - | - | 15 | - | 36 | -1 | ||||||||||||||||||
Private equity | 248 | 11 | 73 | -104 | - | - | - | - | 228 | 10 | ||||||||||||||||||
Total | $ | 292 | $ | 16 | $ | 106 | $ | -157 | $ | - | $ | - | $ | 15 | $ | - | $ | 272 | $ | 10 | ||||||||
Non-U.S. Plan Assets: | ||||||||||||||||||||||||||||
Other fixed maturity securities | $ | 19 | $ | - | $ | - | $ | -2 | $ | - | $ | - | $ | - | $ | - | $ | 17 | $ | - | ||||||||
Insurance contracts | 44 | 9 | 3 | - | - | - | - | - | 56 | - | ||||||||||||||||||
Total | $ | 63 | $ | 9 | $ | 3 | $ | -2 | $ | - | $ | - | $ | - | $ | - | $ | 73 | $ | - | ||||||||
Changes in | ||||||||||||||||||||||||||||
Net | Unrealized Gains | |||||||||||||||||||||||||||
Balance | Realized and | Balance | (Losses) on | |||||||||||||||||||||||||
At December 31, 2013 | Beginning | Unrealized | Transfers | Transfers | at End | Instruments Held | ||||||||||||||||||||||
(in millions) | of year | Gains (Losses) | Purchases | Sales | Issuances | Settlements | In | Out | of year | at End of year | ||||||||||||||||||
U.S. Plan Assets: | ||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||
U.S. investment grade | $ | 11 | $ | -2 | $ | 2 | $ | -2 | $ | - | $ | - | $ | - | $ | - | $ | 9 | $ | -3 | ||||||||
Hedge funds | - | - | - | - | - | - | 35 | - | 35 | - | ||||||||||||||||||
Private equity | 225 | 7 | 44 | -26 | - | -2 | - | - | 248 | -14 | ||||||||||||||||||
Total | $ | 236 | $ | 5 | $ | 46 | $ | -28 | $ | - | $ | -2 | $ | 35 | $ | - | $ | 292 | $ | -17 | ||||||||
Non-U.S. Plan Assets: | ||||||||||||||||||||||||||||
Other fixed maturity securities | $ | 27 | $ | 1 | $ | - | $ | -8 | $ | - | $ | - | $ | - | $ | -1 | $ | 19 | $ | - | ||||||||
Insurance contracts | 43 | 3 | 1 | -1 | - | - | - | -2 | 44 | - | ||||||||||||||||||
Total | $ | 70 | $ | 4 | $ | 1 | $ | -9 | $ | - | $ | - | $ | - | $ | -3 | $ | 63 | $ | - | ||||||||
Transfers of Level 1 and Level 2 Assets | ||||||||||||||||||||||||||||
Our policy is to record transfers of assets between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. We had no transfers between Level 1 and Level 2 during the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||
Transfers of Level 3 Assets | ||||||||||||||||||||||||||||
We record transfers of assets into or out of Level 3 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. During the year ended December 31, 2014, we transferred certain investments in hedge funds into Level 3 as a result of limited market activity due to fund-imposed redemption restrictions. | ||||||||||||||||||||||||||||
Expected Cash Flows | ||||||||||||||||||||||||||||
Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. There are no minimum required cash contributions in 2015 for the AIG Retirement Plan. SERP, AIG NQRIP, and postretirement plan payments are deductible when paid to participants. | ||||||||||||||||||||||||||||
Our annual pension contribution in 2015 is expected to be approximately $173 million for our U.S. and non-U.S. plans, including a $100 million contribution to the AIG Retirement Plan. These estimates are subject to change, since contribution decisions are affected by various factors including our liquidity, market performance and management’s discretion. | ||||||||||||||||||||||||||||
The expected future benefit payments, net of participants’ contributions, with respect to the defined benefit pension plans and other postretirement benefit plans, are as follows: | ||||||||||||||||||||||||||||
Pension | Postretirement | |||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||||||||||||||||
(in millions) | Plans | Plans | Plans | Plans | ||||||||||||||||||||||||
2015 | $ | 353 | $ | 39 | $ | 15 | $ | 1 | ||||||||||||||||||||
2016 | 363 | 35 | 15 | 1 | ||||||||||||||||||||||||
2017 | 391 | 39 | 16 | 1 | ||||||||||||||||||||||||
2018 | 395 | 40 | 17 | 2 | ||||||||||||||||||||||||
2019 | 402 | 47 | 18 | 2 | ||||||||||||||||||||||||
2020-2024 | 2,036 | 236 | 96 | 11 | ||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||||
We sponsor several defined contribution plans for U.S. employees that provide for pre-tax salary reduction contributions by employees. The most significant plan is the AIG Incentive Savings Plan, for which the Company’s matching contribution is 100 percent of the first six percent of a participant’s contributions, subject to the IRS-imposed limitations. Our pre-tax expenses associated with these plans were $156 million, $155 million and $133 million in 2014, 2013 and 2012 respectively. |
OWNERSHIP
OWNERSHIP | 12 Months Ended |
Dec. 31, 2014 | |
OWNERSHIP | |
OWNERSHIP | 23. OWNERSHIP |
A Schedule 13G/A filed February 17, 2015 reports aggregate ownership of 75,755,659 shares, or approximately 5.3 percent (based on the AIG Common Stock outstanding, as adjusted to reflect the warrants owned), of AIG Common Stock and warrants (51,283,896 shares plus 24,471,763 warrants) as of December 31, 2014, including securities beneficially owned, in the aggregate, by Bruce R. Berkowitz and various investment vehicles managed by Fairholme Capital Management, L.L.C. | |
A Schedule 13G/A filed on February 9, 2015 reports aggregate ownership of 87,211,630 shares, or approximately 6.2 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2014, by various subsidiaries of Blackrock, Inc. | |
A Schedule 13G filed on February 11, 2015 reports aggregate ownership of 71,820,823 shares, or approximately 5.1 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2014, by The Vanguard Group, Inc. and various subsidiaries thereof. | |
The calculation of ownership interest for purposes of the AIG Tax Asset Protection Plan and Article 13 of our Restated Certificate of Incorporation is different than beneficial ownership for Schedule 13G. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
INCOME TAXES | ||||||||||||||||||||||||
INCOME TAXES | 24. INCOME TAXES | |||||||||||||||||||||||
The following table presents income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred. | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
U.S. | $ | 8,250 | $ | 8,058 | $ | -948 | ||||||||||||||||||
Foreign | 2,251 | 1,310 | 3,839 | |||||||||||||||||||||
Total | $ | 10,501 | $ | 9,368 | $ | 2,891 | ||||||||||||||||||
The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations: | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Foreign and U.S. components of actual income tax expense: | ||||||||||||||||||||||||
Foreign: | ||||||||||||||||||||||||
Current | $ | 473 | $ | 549 | $ | 484 | ||||||||||||||||||
Deferred | 154 | -442 | -275 | |||||||||||||||||||||
U.S.: | ||||||||||||||||||||||||
Current | 115 | 131 | 278 | |||||||||||||||||||||
Deferred | 2,185 | 122 | -1,295 | |||||||||||||||||||||
Total | $ | 2,927 | $ | 360 | $ | -808 | ||||||||||||||||||
Our actual income tax (benefit) expense differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Pre-Tax | Tax | Percent of | Pre-Tax | Tax | Percent of | Tax | Percent of | |||||||||||||||||
Years Ended December 31, | Income | Expense/ | Pre-Tax | Income | Expense/ | Pre-Tax | Pre-Tax | Expense/ | Pre-Tax | |||||||||||||||
(dollars in millions) | (Loss) | (Benefit) | Income (Loss) | (Loss) | (Benefit) | Income (Loss) | Income | (Benefit) | Income | |||||||||||||||
U.S. federal income tax at statutory | $ | 10,524 | $ | 3,683 | 35 | % | $ | 9,518 | $ | 3,331 | 35 | % | $ | 2,891 | $ | 1,012 | 35 | % | ||||||
rate adjustments: | ||||||||||||||||||||||||
Tax exempt interest | -236 | -2.2 | -298 | -3.1 | -302 | -10.4 | ||||||||||||||||||
Investment in subsidiaries | ||||||||||||||||||||||||
and partnerships | - | - | - | - | -26 | -0.9 | ||||||||||||||||||
Uncertain tax positions | -81 | -0.8 | 632 | 6.6 | 446 | 15.4 | ||||||||||||||||||
Dividends received deduction | -62 | -0.6 | -75 | -0.8 | -58 | -2 | ||||||||||||||||||
Effect of foreign operations | -68 | -0.6 | -5 | -0.1 | 171 | 5.9 | ||||||||||||||||||
State income taxes | 39 | 0.4 | -21 | -0.2 | -48 | -1.7 | ||||||||||||||||||
Other | -159 | -1.5 | 13 | 0.1 | -96 | -3.3 | ||||||||||||||||||
Effect of discontinued operations | 65 | 0.6 | 14 | 0.1 | - | - | ||||||||||||||||||
Valuation allowance: | ||||||||||||||||||||||||
Continuing operations | -181 | -1.7 | -3,165 | -33.3 | -1,907 | -65.9 | ||||||||||||||||||
Consolidated total amounts | 10,524 | 3,000 | 28.5 | 9,518 | 426 | 4.5 | 2,891 | -808 | -27.9 | |||||||||||||||
Amounts attributable to discontinued | ||||||||||||||||||||||||
operations | 23 | 73 | 317.4 | 150 | 66 | 44.3 | - | - | - | |||||||||||||||
Amounts attributable to continuing | ||||||||||||||||||||||||
operations | $ | 10,501 | $ | 2,927 | 27.9 | % | $ | 9,368 | $ | 360 | 3.8 | % | $ | 2,891 | $ | -808 | -27.9 | % | ||||||
For the year ended December 31, 2014, the effective tax rate on income from continuing operations was 27.9 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax benefits of $236 million associated with tax exempt interest income, $209 million related to a decrease in the U.S. Life Insurance Companies’ capital loss carryforward valuation allowance, $182 million of income excludible from gross income related to the global resolution of certain residential mortgage-related disputes and $68 million associated with effect of foreign operations. | ||||||||||||||||||||||||
For the year ended December 31, 2013, the effective tax rate on income from continuing operations was 3.8 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax benefits of $2.8 billion related to a decrease in the U.S. Life Insurance Companies’ capital loss carryforward valuation allowance, $396 million related to a decrease in certain other valuation allowances associated with foreign jurisdictions and $298 million associated with tax exempt interest income. These items were partially offset by charges of $632 million related to uncertain tax positions. | ||||||||||||||||||||||||
For the year ended December 31, 2012, the effective tax rate on income from continuing operations was (27.9) percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to decreases in the U.S. Life Insurance Companies’ capital loss carryforward valuation allowance of $1.9 billion related to the actual and projected gains from the U.S. Life Insurance Companies’ available-for-sale securities, and tax effects associated with tax exempt interest income of $302 million. These items were partially offset by changes in uncertain tax positions of $446 million | ||||||||||||||||||||||||
The following table presents the components of the net deferred tax assets (liabilities): | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||||
Losses and tax credit carryforwards | $ | 18,203 | $ | 20,825 | ||||||||||||||||||||
Basis Differences on Investments | 4,114 | 4,843 | ||||||||||||||||||||||
Life Policy Reserves | 629 | 445 | ||||||||||||||||||||||
Accruals not currently deductible, and other | 1,804 | 2,935 | ||||||||||||||||||||||
Investments in foreign subsidiaries | -58 | 1,035 | ||||||||||||||||||||||
Loss reserve discount | 1,378 | 1,164 | ||||||||||||||||||||||
Loan loss and other reserves | 152 | 888 | ||||||||||||||||||||||
Unearned premium reserve reduction | 1,269 | 1,451 | ||||||||||||||||||||||
Employee benefits | 1,543 | 1,217 | ||||||||||||||||||||||
Total deferred tax assets | 29,034 | 34,803 | ||||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||||
Deferred policy acquisition costs | -3,003 | -3,396 | ||||||||||||||||||||||
Flight equipment, fixed assets and intangible assets | 28 | -2,354 | ||||||||||||||||||||||
Unrealized gains related to available for sale debt securities | -5,795 | -3,693 | ||||||||||||||||||||||
Other | 220 | -571 | ||||||||||||||||||||||
Total deferred tax liabilities | -8,550 | -10,014 | ||||||||||||||||||||||
Net deferred tax assets before valuation allowance | 20,484 | 24,789 | ||||||||||||||||||||||
Valuation allowance | -1,739 | -3,596 | ||||||||||||||||||||||
Net deferred tax assets (liabilities) | $ | 18,745 | $ | 21,193 | ||||||||||||||||||||
The following table presents our U.S. consolidated income tax group tax losses and credits carryforwards as of December 31, 2014 on a tax return basis. | ||||||||||||||||||||||||
31-Dec-14 | Tax | Expiration | ||||||||||||||||||||||
(in millions) | Gross | Effected | Periods | |||||||||||||||||||||
Net operating loss carryforwards | $ | 33,021 | $ | 11,557 | 2028 - 2031 | |||||||||||||||||||
Foreign tax credit carryforwards | - | 7,109 | 2016 - 2023 | |||||||||||||||||||||
Other carryforwards and other | - | 1,034 | Various | |||||||||||||||||||||
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards | $ | 19,700 | ||||||||||||||||||||||
Assessment of Deferred Tax Asset Valuation Allowance | ||||||||||||||||||||||||
The evaluation of the recoverability of the deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed. | ||||||||||||||||||||||||
Our framework for assessing the recoverability of deferred tax assets requires us to consider all available evidence, including: | ||||||||||||||||||||||||
the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; | ||||||||||||||||||||||||
the sustainability of recent operating profitability of our subsidiaries; | ||||||||||||||||||||||||
the predictability of future operating profitability of the character necessary to realize the net deferred tax asset; | ||||||||||||||||||||||||
the carryforward periods for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and, | ||||||||||||||||||||||||
prudent and feasible actions and tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset. | ||||||||||||||||||||||||
As a result of sales in the ordinary course of business to manage the investment portfolio and other transactions during the year ended December 31, 2014, remaining U.S. Life Insurance Companies capital loss carryforwards were realized prior to their expiration. This, together with the changes in market conditions, resulted in a conclusion that deferred tax assets related to unrealized tax losses in the U.S. Life Insurance Companies’ available for sale portfolio will more-likely-than-not be realized. Accordingly, the related deferred tax asset valuation allowance was released. | ||||||||||||||||||||||||
Therefore, for the year ended December 31, 2014, we recognized a decrease of $1.8 billion in the capital loss carryforward valuation allowance associated with the U.S. Life Insurance Companies, of which $209 million was allocated to income from continuing operations and $1.6 billion was allocated to other comprehensive income. Included in the $1.8 billion was a decrease in the capital loss carryforward valuation allowance of $314 million related to a portion of the U.S. Life Insurance Companies’ capital loss carryforward previously treated as expired that was restored and utilized in 2014. | ||||||||||||||||||||||||
During the year ended December 31, 2014, we also recognized a $325 million decrease in our deferred tax asset valuation allowance associated with certain state, local and foreign jurisdictions, primarily attributable to a corresponding reduction in state and local deferred tax assets. | ||||||||||||||||||||||||
The following table presents the net deferred tax assets (liabilities) at December 31, 2014 and 2013 on a U.S. GAAP basis: | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||
Net U.S. consolidated return group deferred tax assets | $ | 24,543 | $ | 26,296 | ||||||||||||||||||||
Net deferred tax assets (liabilities) in accumulated other comprehensive income | -5,510 | -3,337 | ||||||||||||||||||||||
Valuation allowance | -129 | -1,650 | ||||||||||||||||||||||
Subtotal | 18,904 | 21,309 | ||||||||||||||||||||||
Net foreign, state and local deferred tax assets | 2,045 | 2,563 | ||||||||||||||||||||||
Valuation allowance | -1,610 | -1,947 | ||||||||||||||||||||||
Subtotal | 435 | 616 | ||||||||||||||||||||||
Subtotal - Net U.S, foreign, state and local deferred tax assets | 19,339 | 21,925 | ||||||||||||||||||||||
Net foreign, state and local deferred tax liabilities | -594 | -732 | ||||||||||||||||||||||
Total AIG net deferred tax assets (liabilities) | $ | 18,745 | $ | 21,193 | ||||||||||||||||||||
Deferred Tax Asset Valuation Allowance of U.S. Consolidated Income Tax Group | ||||||||||||||||||||||||
At December 31, 2014, and 2013, our U.S. consolidated income tax group had net deferred tax assets after valuation allowance of $18.9 billion and $21.3 billion, respectively. At December 31, 2014, and 2013, our U.S. consolidated income tax group had valuation allowances of $129 million and $1.7 billion, respectively. | ||||||||||||||||||||||||
Deferred Tax Liability — Foreign, State and Local | ||||||||||||||||||||||||
At December 31, 2014 and 2013, we had net deferred tax liabilities of $159 million and $116 million, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. | ||||||||||||||||||||||||
At December 31, 2014 and 2013, we had deferred tax asset valuation allowances of $1.6 billion and $2.0 billion, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. We maintained these valuation allowances following our conclusion that we could not demonstrate that it was more likely than not that the related deferred tax assets will be realized. This was primarily due to factors such as cumulative losses in recent years and the inability to demonstrate profits within the specific jurisdictions over the relevant carryforward periods. | ||||||||||||||||||||||||
Tax Examinations and Litigation | ||||||||||||||||||||||||
We file a consolidated U.S. federal income tax return with our eligible U.S. subsidiaries. Several U.S. subsidiaries included in the consolidated financial statements previously filed separate U.S. federal income tax returns and were not part of our U.S. consolidated income tax group. Income earned by subsidiaries operating outside the U.S. is taxed, and income tax expense is recorded, based on applicable U.S. and foreign law. | ||||||||||||||||||||||||
The statute of limitations for all tax years prior to 2000 has expired for our consolidated federal income tax return. We are currently under examination for the tax years 2000 through 2006. | ||||||||||||||||||||||||
On March 20, 2008, we received a Statutory Notice of Deficiency (Notice) from the IRS for years 1997 to 1999. The Notice asserted that we owe additional taxes and penalties for these years primarily due to the disallowance of foreign tax credits associated with cross-border financing transactions. The transactions that are the subject of the Notice extend beyond the period covered by the Notice, and the IRS is challenging the later periods. It is also possible that the IRS will consider other transactions to be similar to these transactions. We have paid the assessed tax plus interest and penalties for 1997 to 1999. On February 26, 2009, we filed a complaint in the United States District Court for the Southern District of New York seeking a refund of approximately $306 million in taxes, interest and penalties paid with respect to its 1997 taxable year. We allege that the IRS improperly disallowed foreign tax credits and that our taxable income should be reduced as a result of the 2005 restatement of our consolidated financial statements. | ||||||||||||||||||||||||
We also filed an administrative refund claim on September 9, 2010 for our 1998 and 1999 tax years. | ||||||||||||||||||||||||
On March 29, 2011, the U.S. District Court for the Southern District of New York, ruled on a motion for partial summary judgment that we filed on July 30, 2010 related to the disallowance of foreign tax credits associated with cross-border financing transactions. The court denied our motion with leave to renew. | ||||||||||||||||||||||||
On August 1, 2012, we filed a motion for partial summary judgment related to the disallowance of foreign tax credits associated with cross border financing transactions. On March 29, 2013, the U.S District Court for the Southern District of New York denied our motion for partial summary judgment related to the disallowance of foreign tax credits associated with cross border financing transactions. On March 17, 2014, the U.S. Court of Appeals for the Second Circuit (the Second Circuit) granted our petition for an immediate appeal of the partial summary judgment decision. Accordingly, we are presenting our position to the Second Circuit. | ||||||||||||||||||||||||
We will vigorously defend our position and continue to believe that we have adequate reserves for any liability that could result from the IRS actions. | ||||||||||||||||||||||||
We continue to monitor legal and other developments in this area and evaluate the effect, if any, on our position, including recent decisions adverse to other taxpayers. | ||||||||||||||||||||||||
Accounting For Uncertainty in Income Taxes | ||||||||||||||||||||||||
The following table presents a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits: | ||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Gross unrecognized tax benefits, beginning of year | $ | 4,340 | $ | 4,385 | $ | 4,279 | ||||||||||||||||||
Increases in tax positions for prior years | 91 | 680 | 336 | |||||||||||||||||||||
Decreases in tax positions for prior years | -60 | -796 | -264 | |||||||||||||||||||||
Increases in tax positions for current year | 10 | 43 | 47 | |||||||||||||||||||||
Lapse in statute of limitations | -6 | -20 | -8 | |||||||||||||||||||||
Settlements | - | -2 | -5 | |||||||||||||||||||||
Activity of discontinued operations | 20 | 50 | - | |||||||||||||||||||||
Gross unrecognized tax benefits, end of year | $ | 4,395 | $ | 4,340 | $ | 4,385 | ||||||||||||||||||
At December 31, 2014, 2013 and 2012, our unrecognized tax benefits, excluding interest and penalties, were $4.4 billion, $4.3 billion and $4.4 billion, respectively. At December 31, 2014, 2013 and 2012, our unrecognized tax benefits related to tax positions that, if recognized, would not affect the effective tax rate because they relate to such factors as the timing, rather than the permissibility, of the deduction were $0.3 billion, $0.1 billion and $0.2 billion, respectively. Accordingly, at December 31, 2014, 2013 and 2012, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $4.1 billion, $4.2 billion and $4.2 billion, respectively. | ||||||||||||||||||||||||
Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At both December 31, 2014 and 2013, we had accrued liabilities of $1.1 billion for the payment of interest (net of the federal benefit) and penalties. For the years ended December 31, 2014, 2013 and 2012, we accrued expense (benefits) of $21 million, $142 million and $192 million, respectively, for the payment of interest (net of the federal benefit) and penalties. | ||||||||||||||||||||||||
We regularly evaluate adjustments proposed by taxing authorities. At December 31, 2014, such proposed adjustments would not have resulted in a material change to our consolidated financial condition, although it is possible that the effect could be material to our consolidated results of operations for an individual reporting period. Although it is reasonably possible that a change in the balance of unrecognized tax benefits may occur within the next 12 months, based on the information currently available, we do not expect any change to be material to our consolidated financial condition. | ||||||||||||||||||||||||
Listed below are the tax years that remain subject to examination by major tax jurisdictions: | ||||||||||||||||||||||||
At December 31, 2014 | Open Tax Years | |||||||||||||||||||||||
Major Tax Jurisdiction | ||||||||||||||||||||||||
United States | 2000-2013 | |||||||||||||||||||||||
Australia | 2010-2013 | |||||||||||||||||||||||
France | 2012-2013 | |||||||||||||||||||||||
Japan | 2008-2013 | |||||||||||||||||||||||
Korea | 2009-2013 | |||||||||||||||||||||||
Singapore | 2011-2013 | |||||||||||||||||||||||
United Kingdom | 2013 |
QUARTERLY_FINANCIAL_INFORMATIO
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 25. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||
Consolidated Statements of Income (Loss) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
(dollars in millions, except per share data) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||
Total revenues | $ | 16,163 | $ | 17,008 | $ | 16,136 | $ | 18,485 | $ | 16,697 | $ | 15,981 | $ | 15,410 | $ | 17,400 | |
Income from continuing | |||||||||||||||||
operations before income taxes | 2,273 | 2,875 | 4,480 | 3,165 | 3,019 | 1,178 | 729 | 2,150 | |||||||||
Income (loss) from discontinued | |||||||||||||||||
operations, net of income taxes | -47 | 73 | 30 | 18 | 2 | -18 | -35 | 11 | |||||||||
Net income | 1,612 | 2,231 | 3,036 | 2,758 | 2,201 | 2,130 | 675 | 1,973 | |||||||||
Net income (loss) from continuing | |||||||||||||||||
operations attributable to | |||||||||||||||||
noncontrolling interests: | |||||||||||||||||
Nonvoting, callable, junior, and | |||||||||||||||||
senior preferred interests | - | - | - | - | - | - | - | - | |||||||||
Other | 3 | 25 | -37 | 27 | 9 | -40 | 20 | -5 | |||||||||
Total net income (loss) | |||||||||||||||||
attributable | |||||||||||||||||
to noncontrolling interests | 3 | 25 | -37 | 27 | 9 | -40 | 20 | -5 | |||||||||
Net income attributable to AIG* | $ | 1,609 | $ | 2,206 | $ | 3,073 | $ | 2,731 | $ | 2,192 | $ | 2,170 | $ | 655 | $ | 1,978 | |
Earnings (loss) per common share | |||||||||||||||||
attributable to AIG common | |||||||||||||||||
shareholders: | |||||||||||||||||
Basic: | |||||||||||||||||
Income from continuing | |||||||||||||||||
operations | $ | 1.13 | $ | 1.44 | $ | 2.11 | $ | 1.84 | $ | 1.54 | $ | 1.48 | $ | 0.5 | $ | 1.34 | |
Income (loss) from discontinued | |||||||||||||||||
operations | $ | -0.03 | $ | 0.05 | $ | 0.02 | $ | 0.01 | $ | - | $ | -0.01 | $ | -0.03 | $ | 0.01 | |
Diluted: | |||||||||||||||||
Income from continuing | |||||||||||||||||
operations | $ | 1.12 | $ | 1.44 | $ | 2.08 | $ | 1.83 | $ | 1.52 | $ | 1.47 | $ | 0.49 | $ | 1.33 | |
Income (loss) from discontinued | |||||||||||||||||
operations | $ | -0.03 | $ | 0.05 | $ | 0.02 | $ | 0.01 | $ | - | $ | -0.01 | $ | -0.03 | $ | 0.01 | |
Weighted average shares outstanding: | |||||||||||||||||
Basic | 1,459,249,393 | 1,476,471,097 | 1,442,397,111 | 1,476,512,720 | 1,419,239,774 | 1,475,053,126 | 1,391,790,420 | 1,468,725,573 | |||||||||
Diluted | 1,472,510,813 | 1,476,678,931 | 1,464,676,330 | 1,482,246,618 | 1,442,067,842 | 1,485,322,858 | 1,412,162,456 | 1,480,654,482 | |||||||||
Noteworthy quarterly items - | |||||||||||||||||
income (expense): | |||||||||||||||||
Other-than-temporary | |||||||||||||||||
impairments | -59 | -48 | -55 | -46 | -50 | -52 | -83 | -86 | |||||||||
Net (gain) loss on sale of | |||||||||||||||||
divested businesses | -4 | - | -2,174 | 47 | -18 | - | -1 | 1 | |||||||||
Federal and foreign valuation | |||||||||||||||||
allowance for deferred tax assets | 65 | 761 | 75 | 509 | 21 | 1,154 | 20 | 741 | |||||||||
Net gain (loss) on extinguishment of | |||||||||||||||||
debt | -238 | -340 | -34 | -38 | -742 | -81 | -1,268 | -192 | |||||||||
* Net income attributable to AIG for the three-month period ended December 31, 2013 includes $327 million of net charges primarily related to income taxes to correct prior 2013 quarters presented. Such amounts are not material to any period presented. | |||||||||||||||||
The following tables present amounts previously reported and adjusted amounts presented in the above table. See Note 1 herein for a description of the changes. | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2014 | June 30, 2014 | September 30, 2014 | |||||||||||||||
(dollars in millions, except per share data) | As Previously Reported | As Currently Reported | As Previously Reported | As Currently Reported | As Previously Reported | As Currently Reported | |||||||||||
Total revenues | $ | 16,112 | $ | 16,163 | $ | 16,105 | $ | 16,136 | $ | 16,654 | $ | 16,697 | |||||
Net income* | 1,612 | 1,612 | 3,036 | 3,036 | 2,201 | 2,201 | |||||||||||
Three Months Ended | |||||||||||||||||
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | ||||||||||||||
(dollars in millions, except per share data) | As Previously Reported | As Currently Reported | As Previously Reported | As Currently Reported | As Previously Reported | As Currently Reported | As Previously Reported | As Currently Reported | |||||||||
Total revenues | $ | 16,962 | $ | 17,008 | $ | 18,426 | $ | 18,485 | $ | 15,944 | $ | 15,981 | $ | 17,346 | $ | 17,400 | |
Net income* | 2,231 | 2,231 | 2,758 | 2,758 | 2,130 | 2,130 | 1,973 | 1,973 | |||||||||
* The changes in the previously and currently reported total revenues did not have an impact on Net income or Earnings (loss) per common share attributable to AIG common shareholders. |
INFORMATION_PROVIDED_IN_CONNEC
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | |||||||||||
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 26. INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | ||||||||||
The following condensed consolidating financial statements reflect the results of AIG Life Holdings, Inc. (AIGLH), a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of AIGLH. | |||||||||||
Condensed Consolidating Balance Sheets | |||||||||||
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
31-Dec-14 | |||||||||||
Assets: | |||||||||||
Short-term investments | $ | 6,078 | $ | - | $ | 6,231 | $ | -1,066 | $ | 11,243 | |
Other investments(a) | 11,415 | - | 333,108 | - | 344,523 | ||||||
Total investments | 17,493 | - | 339,339 | -1,066 | 355,766 | ||||||
Cash | 26 | 91 | 1,641 | - | 1,758 | ||||||
Loans to subsidiaries(b) | 31,070 | - | 779 | -31,849 | - | ||||||
Investment in consolidated subsidiaries(b) | 62,811 | 35,850 | - | -98,661 | - | ||||||
Other assets, including deferred income taxes | 23,835 | 2,305 | 141,826 | -9,909 | 158,057 | ||||||
Assets held for sale | - | - | - | - | - | ||||||
Total assets | $ | 135,235 | $ | 38,246 | $ | 483,585 | $ | -141,485 | $ | 515,581 | |
Liabilities: | |||||||||||
Insurance liabilities | $ | - | $ | - | $ | 270,615 | $ | - | $ | 270,615 | |
Long-term debt | 21,190 | 820 | 9,207 | - | 31,217 | ||||||
Other liabilities, including intercompany balances(a)(c) | 6,196 | 2,314 | 108,189 | -10,222 | 106,477 | ||||||
Loans from subsidiaries(b) | 951 | - | 30,898 | -31,849 | - | ||||||
Liabilities held for sale | - | - | - | - | - | ||||||
Total liabilities | 28,337 | 3,134 | 418,909 | -42,071 | 408,309 | ||||||
Redeemable noncontrolling interests (see Note 18) | - | - | - | - | - | ||||||
Total AIG shareholders’ equity | 106,898 | 35,112 | 64,302 | -99,414 | 106,898 | ||||||
Non-redeemable noncontrolling interests | - | - | 374 | - | 374 | ||||||
Total equity | 106,898 | 35,112 | 64,676 | -99,414 | 107,272 | ||||||
Total liabilities and equity | $ | 135,235 | $ | 38,246 | $ | 483,585 | $ | -141,485 | $ | 515,581 | |
31-Dec-13 | |||||||||||
Assets: | |||||||||||
Short-term investments | $ | 11,965 | $ | - | $ | 11,404 | $ | -1,752 | $ | 21,617 | |
Other investments(a) | 7,561 | - | 327,250 | - | 334,811 | ||||||
Total investments | 19,526 | - | 338,654 | -1,752 | 356,428 | ||||||
Cash | 30 | 51 | 2,160 | - | 2,241 | ||||||
Loans to subsidiaries(b) | 31,220 | - | 854 | -32,074 | - | ||||||
Investment in consolidated subsidiaries(b) | 66,201 | 39,103 | - | -105,304 | - | ||||||
Other assets, including deferred income taxes | 21,606 | 112 | 132,492 | -1,086 | 153,124 | ||||||
Assets held for sale | - | - | 29,536 | - | 29,536 | ||||||
Total assets | $ | 138,583 | $ | 39,266 | $ | 503,696 | $ | -140,216 | $ | 541,329 | |
Liabilities: | |||||||||||
Insurance liabilities | $ | - | $ | - | $ | 271,252 | $ | - | $ | 271,252 | |
Long-term debt | 30,839 | 1,352 | 9,502 | - | 41,693 | ||||||
Other liabilities, including intercompany balances(a)(c) | 6,422 | 161 | 98,908 | -2,766 | 102,725 | ||||||
Loans from subsidiaries(b) | 852 | 200 | 31,173 | -32,225 | - | ||||||
Liabilities held for sale | - | - | 24,548 | - | 24,548 | ||||||
Total liabilities | 38,113 | 1,713 | 435,383 | -34,991 | 440,218 | ||||||
Redeemable noncontrolling interests (see Note 18) | - | - | 30 | - | 30 | ||||||
Total AIG shareholders’ equity | 100,470 | 37,553 | 67,672 | -105,225 | 100,470 | ||||||
Non-redeemable noncontrolling interests | - | - | 611 | - | 611 | ||||||
Total equity | 100,470 | 37,553 | 68,283 | -105,225 | 101,081 | ||||||
Total liabilities and equity | $ | 138,583 | $ | 39,266 | $ | 503,696 | $ | -140,216 | $ | 541,329 | |
(a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment. | |||||||||||
(b) Eliminated in consolidation. | |||||||||||
(c) For December 31, 2014 and 2013, includes intercompany tax payable of $0.3 billion and $1.4 billion, respectively, and intercompany derivative liabilities of $275 million and $249 million, respectively, for American International Group, Inc. (As Guarantor) and intercompany tax receivable of $3 million and $98 million, respectively, for AIGLH. | |||||||||||
Condensed Consolidating Statements of Income (Loss) | |||||||||||
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
Year Ended December 31, 2014 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 9,450 | $ | 3,519 | $ | - | $ | -12,969 | $ | - | |
Other income | 1,658 | - | 63,157 | -409 | 64,406 | ||||||
Total revenues | 11,108 | 3,519 | 63,157 | -13,378 | 64,406 | ||||||
Expenses: | |||||||||||
Interest expense | 1,507 | 100 | 243 | -132 | 1,718 | ||||||
Loss on extinguishment of debt | 2,248 | - | 85 | -51 | 2,282 | ||||||
Other expenses | 1,546 | 203 | 48,315 | -159 | 49,905 | ||||||
Total expenses | 5,301 | 303 | 48,643 | -342 | 53,905 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 5,807 | 3,216 | 14,514 | -13,036 | 10,501 | ||||||
Income tax expense (benefit) | -1,735 | -103 | 4,817 | -52 | 2,927 | ||||||
Income (loss) from continuing operations | 7,542 | 3,319 | 9,697 | -12,984 | 7,574 | ||||||
Loss from discontinued operations, net of income taxes | -13 | - | -37 | - | -50 | ||||||
Net income (loss) | 7,529 | 3,319 | 9,660 | -12,984 | 7,524 | ||||||
Less: | |||||||||||
Net loss from continuing operations attributable to | |||||||||||
noncontrolling interests | - | - | -5 | - | -5 | ||||||
Net income (loss) attributable to AIG | $ | 7,529 | $ | 3,319 | $ | 9,665 | $ | -12,984 | $ | 7,529 | |
Year Ended December 31, 2013 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 7,638 | $ | 4,075 | $ | - | $ | -11,713 | $ | - | |
Other income | 1,487 | 1 | 67,698 | -312 | 68,874 | ||||||
Total revenues | 9,125 | 4,076 | 67,698 | -12,025 | 68,874 | ||||||
Expenses: | |||||||||||
Interest expense | 1,938 | 126 | 233 | -155 | 2,142 | ||||||
Loss on extinguishment of debt | 580 | - | 71 | - | 651 | ||||||
Other expenses | 1,520 | 75 | 55,277 | -159 | 56,713 | ||||||
Total expenses | 4,038 | 201 | 55,581 | -314 | 59,506 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 5,087 | 3,875 | 12,117 | -11,711 | 9,368 | ||||||
Income tax expense (benefit) | -4,012 | -58 | 4,454 | -24 | 360 | ||||||
Income (loss) from continuing operations | 9,099 | 3,933 | 7,663 | -11,687 | 9,008 | ||||||
Income (loss) from discontinued operations, net of income taxes | -14 | - | 98 | - | 84 | ||||||
Net income (loss) | 9,085 | 3,933 | 7,761 | -11,687 | 9,092 | ||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to | |||||||||||
noncontrolling interests: | - | - | 7 | - | 7 | ||||||
Net income (loss) attributable to AIG | $ | 9,085 | $ | 3,933 | $ | 7,754 | $ | -11,687 | $ | 9,085 | |
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
Year Ended December 31, 2012 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 1,970 | $ | 2,315 | $ | - | $ | -4,285 | $ | - | |
Change in fair value of ML III | 2,287 | - | 601 | - | 2,888 | ||||||
Other income | 1,911 | 49 | 66,749 | -383 | 68,326 | ||||||
Total revenues | 6,168 | 2,364 | 67,350 | -4,668 | 71,214 | ||||||
Expenses: | |||||||||||
Interest expense on FRBNY Credit Facility | - | - | - | - | - | ||||||
Other interest expense | 2,257 | 174 | 271 | -383 | 2,319 | ||||||
Loss on extinguishment of debt | 9 | - | 23 | - | 32 | ||||||
Other expenses | 1,602 | - | 64,370 | - | 65,972 | ||||||
Total expenses | 3,868 | 174 | 64,664 | -383 | 68,323 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 2,300 | 2,190 | 2,686 | -4,285 | 2,891 | ||||||
Income tax expense (benefit) | -1,137 | -17 | 346 | - | -808 | ||||||
Income (loss) from continuing operations | 3,437 | 2,207 | 2,340 | -4,285 | 3,699 | ||||||
Income from discontinued operations, net of income taxes | 1 | - | - | - | 1 | ||||||
Net income (loss) | 3,438 | 2,207 | 2,340 | -4,285 | 3,700 | ||||||
Less: | |||||||||||
Net income from continuing operations attributable to | |||||||||||
noncontrolling interests: | |||||||||||
Nonvoting, callable, junior and senior preferred interests | - | - | - | 208 | 208 | ||||||
Other | - | - | 54 | - | 54 | ||||||
Total net income from continuing operations attributable to | |||||||||||
noncontrolling interests | - | - | 54 | 208 | 262 | ||||||
Net Income (loss) from discontinued operations attributable to | |||||||||||
noncontrolling interests | - | - | - | - | - | ||||||
Total net income attributable to noncontrolling interests | - | - | 54 | 208 | 262 | ||||||
Net income (loss) attributable to AIG | $ | 3,438 | $ | 2,207 | $ | 2,286 | $ | -4,493 | $ | 3,438 | |
* Eliminated in consolidation. | |||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | |||||||||||
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
Year Ended December 31, 2014 | |||||||||||
Net income (loss) | $ | 7,529 | $ | 3,319 | $ | 9,660 | $ | -12,984 | $ | 7,524 | |
Other comprehensive income (loss) | 4,257 | 2,794 | 3,235 | -6,029 | 4,257 | ||||||
Comprehensive income (loss) | 11,786 | 6,113 | 12,895 | -19,013 | 11,781 | ||||||
Total comprehensive loss attributable to noncontrolling interests | - | - | -5 | - | -5 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 11,786 | $ | 6,113 | $ | 12,900 | $ | -19,013 | $ | 11,786 | |
Year Ended December 31, 2013 | |||||||||||
Net income (loss) | $ | 9,085 | $ | 3,933 | $ | 7,761 | $ | -11,687 | $ | 9,092 | |
Other comprehensive income (loss) | -6,214 | -4,689 | -6,719 | 11,385 | -6,237 | ||||||
Comprehensive income (loss) | 2,871 | -756 | 1,042 | -302 | 2,855 | ||||||
Total comprehensive loss attributable to noncontrolling interests | - | - | -16 | - | -16 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 2,871 | $ | -756 | $ | 1,058 | $ | -302 | $ | 2,871 | |
Year Ended December 31, 2012 | |||||||||||
Net income (loss) | $ | 3,438 | $ | 2,207 | $ | 2,340 | $ | -4,285 | $ | 3,700 | |
Other comprehensive income (loss) | 6,093 | 3,973 | 7,158 | -11,128 | 6,096 | ||||||
Comprehensive income (loss) | 9,531 | 6,180 | 9,498 | -15,413 | 9,796 | ||||||
Total comprehensive income attributable to noncontrolling interests | - | - | 57 | 208 | 265 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 9,531 | $ | 6,180 | $ | 9,441 | $ | -15,621 | $ | 9,531 | |
Condensed Consolidating Statements of Cash Flows | |||||||||||
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries* | Eliminations* | AIG | ||||||
Year Ended December 31, 2014 | |||||||||||
Net cash (used in) provided by operating activities | $ | 9,316 | $ | 6,155 | $ | 8,979 | $ | -19,443 | $ | 5,007 | |
Cash flows from investing activities: | |||||||||||
Sales of investments | 3,036 | - | 65,108 | -2,040 | 66,104 | ||||||
Purchase of investments | -1,051 | - | -59,099 | 2,040 | -58,110 | ||||||
Loans to subsidiaries – net | 446 | - | 169 | -615 | - | ||||||
Contributions to subsidiaries | -148 | - | 296 | -148 | - | ||||||
Net change in restricted cash | -501 | - | -946 | - | -1,447 | ||||||
Net change in short-term investments | 5,792 | - | 2,968 | - | 8,760 | ||||||
Other, net | -141 | - | -882 | - | -1,023 | ||||||
Net cash provided by investing activities | 7,433 | - | 7,614 | -763 | 14,284 | ||||||
Cash flows from financing activities: | |||||||||||
Issuance of long-term debt | 3,247 | - | 3,440 | - | 6,687 | ||||||
Repayments of long-term debt | -14,468 | -477 | -1,215 | - | -16,160 | ||||||
Purchase of Common Stock | -4,902 | - | - | - | -4,902 | ||||||
Intercompany loans - net | 110 | -280 | -445 | 615 | - | ||||||
Cash dividends paid | -712 | -5,358 | -14,085 | 19,443 | -712 | ||||||
Other, net | -28 | - | -4,821 | 148 | -4,701 | ||||||
Net cash (used in) financing activities | -16,753 | -6,115 | -17,126 | 20,206 | -19,788 | ||||||
Effect of exchange rate changes on cash | - | - | -74 | - | -74 | ||||||
Change in cash | -4 | 40 | -607 | - | -571 | ||||||
Cash at beginning of year | 30 | 51 | 2,160 | - | 2,241 | ||||||
Change in cash of businesses held for sale | - | - | 88 | - | 88 | ||||||
Cash at end of year | $ | 26 | $ | 91 | $ | 1,641 | $ | - | $ | 1,758 | |
Year Ended December 31, 2013 | |||||||||||
Net cash (used in) provided by operating activities | $ | 6,422 | $ | 4,488 | $ | 7,385 | $ | -12,430 | $ | 5,865 | |
Cash flows from investing activities: | |||||||||||
Sales of investments | 1,425 | - | 78,868 | -3,199 | 77,094 | ||||||
Purchase of investments | -5,506 | - | -75,580 | 3,199 | -77,887 | ||||||
Loans to subsidiaries – net | 3,660 | - | 395 | -4,055 | - | ||||||
Contributions to subsidiaries | -2,081 | -1 | - | 2,082 | - | ||||||
Net change in restricted cash | 493 | - | 751 | - | 1,244 | ||||||
Net change in short-term investments | 2,361 | - | 5,481 | - | 7,842 | ||||||
Other, net | 130 | - | -1,324 | - | -1,194 | ||||||
Net cash (used in) provided by investing activities | 482 | -1 | 8,591 | -1,973 | 7,099 | ||||||
Cash flows from financing activities: | |||||||||||
Issuance of long-term debt | 2,015 | - | 3,220 | - | 5,235 | ||||||
Repayments of long-term debt | -7,439 | -245 | -6,513 | - | -14,197 | ||||||
Intercompany loans - net | -123 | -273 | -3,659 | 4,055 | - | ||||||
Purchase of common stock | -597 | - | - | - | -597 | ||||||
Cash dividends paid to shareholders | -294 | -3,991 | -8,439 | 12,430 | -294 | ||||||
Other, net | -517 | - | 694 | -2,082 | -1,905 | ||||||
Net cash (used in) provided by financing activities | -6,955 | -4,509 | -14,697 | 14,403 | -11,758 | ||||||
Effect of exchange rate changes on cash | - | - | -92 | - | -92 | ||||||
Change in cash | -51 | -22 | 1,187 | - | 1,114 | ||||||
Cash at beginning of year | 81 | 73 | 997 | - | 1,151 | ||||||
Reclassification to assets held for sale | - | - | -24 | - | -24 | ||||||
Cash at end of year | $ | 30 | $ | 51 | $ | 2,160 | $ | - | $ | 2,241 | |
Year Ended December 31, 2012 | |||||||||||
Net cash (used in) provided by operating activities | $ | -825 | $ | 2,682 | $ | 6,387 | $ | -4,568 | $ | 3,676 | |
Cash flows from investing activities: | |||||||||||
Sales of investments | 16,874 | - | 90,070 | -5,538 | 101,406 | ||||||
Purchase of investments | -4,406 | - | -77,699 | 5,538 | -76,567 | ||||||
Loans to subsidiaries – net | 5,126 | - | 4,654 | -9,780 | - | ||||||
Contributions to subsidiaries | -152 | - | - | 152 | - | ||||||
Net change in restricted cash | -377 | - | 791 | - | 414 | ||||||
Net change in short-term investments | -2,029 | - | -6,080 | - | -8,109 | ||||||
Other, net | 259 | - | -791 | - | -532 | ||||||
Net cash (used in) provided by investing activities | 15,295 | - | 10,945 | -9,628 | 16,612 | ||||||
Cash flows from financing activities: | |||||||||||
Issuance of long-term debt | 3,754 | - | 4,858 | - | 8,612 | ||||||
Repayments of long-term debt | -3,238 | - | -7,863 | - | -11,101 | ||||||
Intercompany loans - net | -2,032 | -2,622 | -5,126 | 9,780 | - | ||||||
Purchase of common stock | -13,000 | - | - | - | -13,000 | ||||||
Cash dividends paid to shareholders | - | - | -4,568 | 4,568 | - | ||||||
Other, net | -49 | - | -4,874 | -152 | -5,075 | ||||||
Net cash (used in) provided by financing activities | -14,565 | -2,622 | -17,573 | 14,196 | -20,564 | ||||||
Effect of exchange rate changes on cash | - | - | 16 | - | 16 | ||||||
Change in cash | -95 | 60 | -225 | - | -260 | ||||||
Cash at beginning of year | 176 | 13 | 1,285 | - | 1,474 | ||||||
Change in cash of businesses held for sale | - | - | -63 | - | -63 | ||||||
Cash at end of year | $ | 81 | $ | 73 | $ | 997 | $ | - | $ | 1,151 | |
* | |||||||||||
Supplementary Disclosure of Condensed Consolidating Cash Flow Information | |||||||||||
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries* | Eliminations* | AIG | ||||||
Cash (paid) received during the year ended December 31, 2014 for: | |||||||||||
Interest: | |||||||||||
Third party | $ | -1,624 | $ | -87 | $ | -1,656 | $ | - | $ | -3,367 | |
Intercompany | 5 | -7 | 2 | - | - | ||||||
Taxes: | |||||||||||
Income tax authorities | $ | -18 | $ | - | $ | -719 | $ | - | $ | -737 | |
Intercompany | 1,172 | - | -1,172 | - | - | ||||||
Cash (paid) received during the year ended December 31, 2013 for: | |||||||||||
Interest: | |||||||||||
Third party | $ | -1,963 | $ | -111 | $ | -1,782 | $ | - | $ | -3,856 | |
Intercompany | -12 | -21 | 33 | - | - | ||||||
Taxes: | |||||||||||
Income tax authorities | $ | -161 | $ | - | $ | -635 | $ | - | $ | -796 | |
Intercompany | 288 | -78 | -210 | - | - | ||||||
Cash (paid) received during the year ended December 31, 2012 for: | |||||||||||
Interest: | |||||||||||
Third party* | $ | -2,089 | $ | -128 | $ | -1,820 | $ | - | $ | -4,037 | |
Intercompany | -133 | -56 | 189 | - | - | ||||||
Taxes: | |||||||||||
Income tax authorities | $ | -7 | $ | - | $ | -440 | $ | - | $ | -447 | |
Intercompany | 230 | -41 | -189 | - | - | ||||||
* The Other Subsidiaries and Reclassifications and Eliminations amounts were disclosed together in prior periods. The new presentation had no impact on the Consolidated AIG amounts. | |||||||||||
American International Group, Inc. (As Guarantor) supplementary disclosure of non-cash activities: | |||||||||||
Years Ended December 31, | |||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||
Intercompany non-cash financing and investing activities: | |||||||||||
Capital contributions | |||||||||||
in the form of bond available for sale securities | $ | - | $ | - | $ | 4,078 | |||||
to subsidiaries through forgiveness of loans | - | 341 | - | ||||||||
Other capital contributions - net | 2,457 | 523 | 579 | ||||||||
Return of capital | 4,836 | - | - | ||||||||
Return of capital and dividend received | |||||||||||
in the form of cancellation of intercompany loan | - | - | 9,303 | ||||||||
in the form of other bond securities | 3,088 | - | 3,320 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 27. Subsequent events |
Debt Offering | |
On January 15, 2015, we issued $1.2 billion aggregate principal amount of 3.875% Notes due 2035 and $800 million aggregate principal amount of 4.375% Notes due 2055. | |
Dividends Declared and Share Repurchase Authorization | |
On February 12, 2015, our Board of Directors declared a cash dividend on AIG Common Stock of $0.125 per share, payable on March 26, 2015 to shareholders of record on March 12, 2015. | |
On February 12, 2015, our Board of Directors authorized an additional increase to the August 1, 2013 repurchase authorization of AIG Common Stock of $2.5 billion, resulting in an aggregate remaining authorization on such date of approximately $2.5 billion. |
Schedule_I_Summary_of_Investme
Schedule I Summary of Investments - Other than Investments in Related Parties | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Schedule I Summary of Investments - Other than Investments in Related Parties | |||||||
Schedule I Summary of Investments - Other than Investments in Related Parties | Summary of Investments — Other than Investments in Related Parties | ||||||
Schedule I | |||||||
Amount at | |||||||
At December 31, 2014 | which shown in | ||||||
(in millions) | Cost* | Fair Value | the Balance Sheet | ||||
Fixed maturities: | |||||||
U.S. government and government sponsored entities | $ | 8,304 | $ | 8,490 | $ | 8,490 | |
Obligations of states, municipalities and political subdivisions | 26,101 | 27,781 | 27,781 | ||||
Non-U.S. governments | 20,282 | 21,097 | 21,097 | ||||
Public utilities | 21,712 | 23,676 | 23,676 | ||||
All other corporate debt securities | 113,968 | 121,476 | 121,476 | ||||
Mortgage-backed, asset-backed and collateralized | 72,652 | 77,051 | 77,051 | ||||
Total fixed maturity securities | 263,019 | 279,571 | 279,571 | ||||
Equity securities and mutual funds: | |||||||
Common stock: | |||||||
Public utilities | 9 | 11 | 11 | ||||
Banks, trust and insurance companies | 1,854 | 4,128 | 4,128 | ||||
Industrial, miscellaneous and all other | 371 | 539 | 539 | ||||
Total common stock | 2,234 | 4,678 | 4,678 | ||||
Preferred stock | 21 | 25 | 25 | ||||
Mutual funds | 724 | 741 | 741 | ||||
Total equity securities and mutual funds | 2,979 | 5,444 | 5,444 | ||||
Mortgage and other loans receivable, net of allowance | 24,990 | 26,606 | 24,990 | ||||
Other invested assets | 32,615 | 33,640 | 34,518 | ||||
Short-term investments, at cost (approximates fair value) | 11,243 | 11,243 | 11,243 | ||||
Derivative assets | 1,604 | 1,604 | 1,604 | ||||
Total investments | $ | 336,450 | $ | 358,108 | $ | 357,370 | |
* Original cost of equity securities and fixed maturities is reduced by other-than-temporary impairment charges, and, as to fixed maturity securities, reduced by repayments and adjusted for amortization of premiums or accretion of discounts. |
Schedule_II_Condensed_Financia
Schedule II Condensed Financial Information of Registrant - Parent Company Only | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Schedule II Condensed Financial Information of Registrant - Parent Company Only | ||||||||
Schedule II Condensed Financial Information of Registrant - Parent Company Only | Condensed Financial Information of Registrant | |||||||
Balance Sheets — Parent Company Only | ||||||||
Schedule II | ||||||||
December 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Assets: | ||||||||
Short-term investments | $ | 6,078 | $ | 11,965 | ||||
Other investments | 11,415 | 7,561 | ||||||
Total investments | 17,493 | 19,526 | ||||||
Cash | 26 | 30 | ||||||
Loans to subsidiaries* | 31,070 | 31,220 | ||||||
Due from affiliates - net* | 3,561 | 765 | ||||||
Deferred income taxes | 18,309 | 19,352 | ||||||
Investments in consolidated subsidiaries* | 62,811 | 66,201 | ||||||
Other assets | 1,965 | 1,489 | ||||||
Total assets | $ | 135,235 | $ | 138,583 | ||||
Liabilities: | ||||||||
Intercompany tax payable* | $ | 343 | $ | 1,419 | ||||
Notes and bonds payable | 15,821 | 14,312 | ||||||
Junior subordinated debt | 2,466 | 5,533 | ||||||
MIP notes payable | 2,870 | 7,963 | ||||||
Series AIGFP matched notes and bonds payable | 33 | 3,031 | ||||||
Loans from subsidiaries* | 951 | 852 | ||||||
Other liabilities (includes intercompany derivative liabilities of $275 in 2014 and $249 in 2013) | 5,853 | 5,003 | ||||||
Total liabilities | 28,337 | 38,113 | ||||||
AIG Shareholders’ equity: | ||||||||
Common stock | 4,766 | 4,766 | ||||||
Treasury stock | -19,218 | -14,520 | ||||||
Additional paid-in capital | 80,958 | 80,899 | ||||||
Retained earnings | 29,775 | 22,965 | ||||||
Accumulated other comprehensive income | 10,617 | 6,360 | ||||||
Total AIG shareholders’ equity | 106,898 | 100,470 | ||||||
Total liabilities and equity | $ | 135,235 | $ | 138,583 | ||||
* Eliminated in consolidation. | ||||||||
See Accompanying Notes to Condensed Financial Information of Registrant. | ||||||||
Condensed Financial Information of Registrant (Continued) | ||||||||
Statements of Income — Parent Company Only | ||||||||
Schedule II | ||||||||
Years Ended December 31, | ||||||||
(in millions) | 2014 | 2013 | 2012 | |||||
Revenues: | ||||||||
Equity in undistributed net income (loss) of consolidated subsidiaries* | $ | -5,573 | $ | -2,226 | $ | -8,740 | ||
Dividend income from consolidated subsidiaries* | 15,023 | 9,864 | 10,710 | |||||
Interest income | 305 | 387 | 358 | |||||
Change in fair value of ML III | - | - | 2,287 | |||||
Net realized capital gains | 8 | 169 | 747 | |||||
Other income | 1,345 | 931 | 806 | |||||
Expenses: | ||||||||
Interest expense | 1,507 | 1,938 | 2,257 | |||||
Net loss on extinguishment of debt | 2,248 | 580 | 9 | |||||
Other expenses | 1,546 | 1,520 | 1,602 | |||||
Income from continuing operations before income tax expense (benefit) | 5,807 | 5,087 | 2,300 | |||||
Income tax benefit | -1,735 | -4,012 | -1,137 | |||||
Net income | 7,542 | 9,099 | 3,437 | |||||
Income (loss) from discontinued operations | -13 | -14 | 1 | |||||
Net income attributable to AIG Parent Company | $ | 7,529 | $ | 9,085 | $ | 3,438 | ||
* Eliminated in consolidation. | ||||||||
See Accompanying Notes to Condensed Financial Information of Registrant. | ||||||||
Condensed Financial Information of Registrant (Continued) | ||||||||
Statements of Comprehensive Income — Parent Company Only | ||||||||
Schedule II | ||||||||
Years Ended December 31, | ||||||||
(in millions) | 2014 | 2013 | 2012 | |||||
Net income | $ | 7,529 | $ | 9,085 | $ | 3,438 | ||
Other comprehensive income | 4,257 | -6,214 | 6,093 | |||||
Total comprehensive income attributable to AIG | $ | 11,786 | $ | 2,871 | $ | 9,531 | ||
See accompanying Notes to Condensed Financial Information of Registrant | ||||||||
Condensed Financial Information of Registrant (Continued) | ||||||||
Statements of Cash Flows — Parent Company Only | ||||||||
Schedule II | ||||||||
Years Ended December 31, | ||||||||
(in millions) | 2014 | 2013 | 2012 | |||||
Net cash provided by (used in) operating activities | $ | 9,316 | $ | 6,422 | $ | -825 | ||
Cash flows from investing activities: | ||||||||
Sales and maturities of investments | 2,996 | 1,074 | 16,546 | |||||
Purchase of investments | -1,051 | -5,506 | -4,406 | |||||
Net change in restricted cash | -501 | 493 | -377 | |||||
Net change in short-term investments | 5,792 | 2,361 | -2,029 | |||||
Contributions to subsidiaries - net | -148 | -2,081 | -152 | |||||
Payments received on mortgages and other loan receivables | 40 | 351 | 328 | |||||
Loans to subsidiaries - net | 446 | 3,660 | 5,126 | |||||
Other, net | -141 | 130 | 259 | |||||
Net cash provided by investing activities | 7,433 | 482 | 15,295 | |||||
Cash flows from financing activities: | ||||||||
Issuance of long-term debt | 3,247 | 2,015 | 3,754 | |||||
Repayment of long-term debt | -14,468 | -7,439 | -3,238 | |||||
Cash dividends paid | -712 | -294 | - | |||||
Loans from subsidiaries - net | 110 | -123 | -2,032 | |||||
Purchase of Common Stock | -4,902 | -597 | -13,000 | |||||
Other, net | -28 | -517 | -49 | |||||
Net cash used in financing activities | -16,753 | -6,955 | -14,565 | |||||
Change in cash | -4 | -51 | -95 | |||||
Cash at beginning of year | 30 | 81 | 176 | |||||
Cash at end of year | $ | 26 | $ | 30 | $ | 81 | ||
Supplementary disclosure of cash flow information: | ||||||||
Years Ended December 31, | ||||||||
(in millions) | 2014 | 2013 | 2012 | |||||
Cash (paid) received during the period for: | ||||||||
Interest: | ||||||||
Third party | $ | -1,624 | $ | -1,963 | $ | -2,089 | ||
Intercompany | 5 | -12 | -133 | |||||
Taxes: | ||||||||
Income tax authorities | -18 | -161 | -7 | |||||
Intercompany | 1,172 | 288 | 230 | |||||
Intercompany non-cash financing and investing activities: | ||||||||
Capital contributions in the form of bond available for sale securities | - | - | 4,078 | |||||
Capital contributions to subsidiaries through forgiveness of loans | - | 341 | - | |||||
Other capital contributions - net | 2,457 | 523 | 579 | |||||
Return of capital* | 4,836 | - | - | |||||
Dividends received in the form of bond available for sale securities | 3,088 | - | - | |||||
Intercompany loan receivable offset by intercompany payable | - | - | 3,320 | |||||
Return of capital and dividend received in the form of cancellation of intercompany loan | - | - | 9,303 | |||||
See Accompanying Notes to Condensed Financial Information of Registrant. | ||||||||
* Includes $4.8 billion return of capital from AIG Capital Corporation related to the sale of ILFC. | ||||||||
Notes to Condensed Financial Information of Registrant | ||||||||
American International Group, Inc.’s (the Registrant) investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The accompanying condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto of American International Group, Inc. and subsidiaries included in the Registrant’s 2014 Annual Report on Form 10-K for the year ended December 31, 2014 (2014 Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 20, 2015. | ||||||||
The Registrant includes in its Statement of Income dividends from its subsidiaries and equity in undistributed income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries. | ||||||||
Certain prior period amounts have been reclassified to conform to the current period presentation. | ||||||||
The five-year debt maturity schedule is incorporated by reference from Note 15 to Consolidated Financial Statements. | ||||||||
The Registrant files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Registrant and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated Federal income taxes. Amounts allocated to the subsidiaries under the written agreement are included in Due from affiliates in the accompanying Condensed Balance Sheets. | ||||||||
Income taxes in the accompanying Condensed Balance Sheets are composed of the Registrant’s current and deferred tax assets, the consolidated group’s current income tax receivable, deferred taxes related to tax attribute carryforwards of AIG’s U.S. consolidated income tax group and a valuation allowance to reduce the consolidated deferred tax asset to an amount more likely than not to be realized. See Note 24 to the Consolidated Financial Statements for additional information. | ||||||||
The consolidated U.S. deferred tax asset for net operating loss, capital loss and tax credit carryforwards and valuation allowance are recorded by the Parent Company, which files the consolidated U.S. Federal income tax return, and are not allocated to its subsidiaries. Generally, as, and if, the consolidated net operating losses and other tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries. |
Schedule_III_Supplementary_Ins
Schedule III Supplementary Insurance Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule III Supplementary Insurance Information | |||||||||||||
Schedule III Supplementary Insurance Information | Supplementary Insurance Information | ||||||||||||
Schedule III | |||||||||||||
At December 31, 2014 and 2013 | |||||||||||||
Liability | |||||||||||||
for Unpaid | |||||||||||||
Losses and | |||||||||||||
Loss | |||||||||||||
Deferred | Adjustment | Policy | |||||||||||
Policy | Expenses, | and | |||||||||||
Acquisition | Future Policy | Unearned | Contract | ||||||||||
Segment (in millions) | Costs | Benefits | Premiums | Claims | |||||||||
2014 | |||||||||||||
Non-Life Insurance Companies | $ | 2,551 | $ | 77,839 | $ | 21,325 | $ | - | |||||
Life Insurance Companies | 7,258 | 42,004 | - | 818 | |||||||||
Corporate and Other(a) | 18 | 166 | -1 | 11 | |||||||||
$ | 9,827 | $ | 120,009 | $ | 21,324 | $ | 829 | ||||||
2013 | |||||||||||||
Non-Life Insurance Companies | $ | 2,493 | $ | 82,156 | $ | 21,953 | $ | - | |||||
Life Insurance Companies | 6,920 | 39,848 | - | 796 | |||||||||
Corporate and Other(a) | 23 | 196 | - | 10 | |||||||||
$ | 9,436 | $ | 122,200 | $ | 21,953 | $ | 806 | ||||||
For the years ended December 31, 2014, 2013 and 2012 | |||||||||||||
Losses | Amortization | ||||||||||||
Premiums | and Loss | of Deferred | |||||||||||
and | Net | Expenses | Policy | Other | Net | ||||||||
Policy | Investment | Incurred, | Acquisition | Operating | Premiums | ||||||||
Segment (in millions) | Fees | Income | Benefits | Costs | Expenses | Written(b) | |||||||
2014 | |||||||||||||
Commercial Insurance | $ | 22,408 | $ | 6,393 | $ | 16,985 | $ | 2,512 | $ | 3,794 | $ | 22,044 | |
Consumer Insurance | 17,389 | 9,082 | 14,149 | 2,759 | 7,087 | 12,412 | |||||||
Corporate and Other(a) | 72 | 604 | 915 | 59 | 6 | - | |||||||
$ | 39,869 | $ | 16,079 | $ | 32,049 | $ | 5,330 | $ | 10,887 | $ | 34,456 | ||
2013 | |||||||||||||
Commercial Insurance | $ | 22,209 | $ | 6,653 | $ | 17,415 | $ | 2,418 | $ | 4,049 | $ | 21,928 | |
Consumer Insurance | 17,554 | 9,352 | 14,434 | 2,836 | 6,826 | 12,700 | |||||||
Corporate and Other(a) | 76 | -195 | 1,546 | -97 | 8 | - | |||||||
$ | 39,839 | $ | 15,810 | $ | 33,395 | $ | 5,157 | $ | 10,883 | $ | 34,628 | ||
2012 | |||||||||||||
Commercial Insurance | $ | 22,123 | $ | 6,163 | $ | 19,441 | $ | 2,692 | $ | 3,938 | $ | 21,206 | |
Consumer Insurance | 18,140 | 9,262 | 15,465 | 2,850 | 6,695 | 13,302 | |||||||
Corporate and Other(a) | 118 | 4,918 | 1,470 | 167 | 6 | - | |||||||
$ | 40,381 | $ | 20,343 | $ | 36,376 | $ | 5,709 | $ | 10,639 | $ | 34,508 | ||
(a) Includes consolidation and elimination entries. | |||||||||||||
(b) Balances reflect the segment changes discussed in Note 3 – Segment Information to the Consolidated Financial Statements. |
Schedule_IV_Reinsurance
Schedule IV Reinsurance | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Schedule IV Reinsurance | ||||||||||||
Schedule IV Reinsurance | Reinsurance | |||||||||||
Schedule IV | ||||||||||||
At December 31, 2014, 2013 and 2012 and for the years then ended | ||||||||||||
Percent of | ||||||||||||
Ceded to | Assumed | Amount | ||||||||||
Gross | Other | from Other | Assumed | |||||||||
(in millions) | Amount | Companies | Companies | Net Amount | to Net | |||||||
2014 | ||||||||||||
Long-duration insurance in force | $ | 1,033,281 | $ | 180,178 | $ | 410 | $ | 853,513 | - | % | ||
Premiums: | ||||||||||||
Non-Life Insurance Companies | $ | 39,375 | $ | 8,318 | $ | 3,399 | $ | 34,456 | 9.9 | % | ||
Life Insurance Companies | 4,039 | 661 | 20 | 3,398 | 0.6 | |||||||
Run-off insurance lines | 11 | - | - | 11 | - | |||||||
Total | $ | 43,425 | $ | 8,979 | $ | 3,419 | $ | 37,865 | 9 | % | ||
2013 | ||||||||||||
Long-duration insurance in force | $ | 946,743 | $ | 122,012 | $ | 427 | $ | 825,158 | 0.1 | % | ||
Premiums: | ||||||||||||
Non-Life Insurance Companies | $ | 39,833 | $ | 9,514 | $ | 4,306 | $ | 34,625 | 12.4 | % | ||
Life Insurance Companies | 4,142 | 620 | 13 | 3,535 | 0.4 | |||||||
Run-off insurance lines | 9 | - | - | 9 | - | |||||||
Total | $ | 43,984 | $ | 10,134 | $ | 4,319 | $ | 38,169 | 11.3 | % | ||
2012 | ||||||||||||
Long-duration insurance in force | $ | 947,951 | $ | 129,159 | $ | 458 | $ | 819,250 | 0.1 | % | ||
Premiums: | ||||||||||||
Non-Life Insurance Companies | $ | 40,647 | $ | 11,054 | $ | 4,900 | $ | 34,493 | 14.2 | % | ||
Life Insurance Companies | 3,946 | 581 | 17 | 3,382 | 0.5 | |||||||
Run-off insurance lines | 11 | - | - | 11 | - | |||||||
Total | $ | 44,604 | $ | 11,635 | $ | 4,917 | $ | 37,886 | 13 | % |
Schedule_V_Valuation_and_Quali
Schedule V Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||
Schedule V Valuation and Qualifying Accounts | Valuation and Qualifying Accounts | ||||||||||||||
Schedule V | |||||||||||||||
For the years ended December 31, 2014, 2013 and 2012 | |||||||||||||||
Additions | |||||||||||||||
Balance, | Charged to | Activity of | |||||||||||||
Beginning | Costs and | Discontinued | Divested | Other | Balance, | ||||||||||
(in millions) | of year | Expenses | Charge Offs | Operations | Businesses | Changes* | End of year | ||||||||
2014 | |||||||||||||||
Allowance for mortgage and | |||||||||||||||
other loans receivable | $ | 312 | $ | -8 | $ | -68 | $ | - | $ | 1 | $ | 34 | $ | 271 | |
Allowance for premiums and | |||||||||||||||
insurances balances receivable | 560 | 35 | -99 | - | - | -65 | 431 | ||||||||
Allowance for reinsurance assets | 276 | 4 | -3 | - | - | -19 | 258 | ||||||||
Federal and foreign valuation | |||||||||||||||
allowance for deferred tax assets | 3,596 | -181 | - | - | - | -1,676 | 1,739 | ||||||||
2013 | |||||||||||||||
Allowance for mortgage and | |||||||||||||||
other loans receivable | $ | 405 | $ | 20 | $ | -116 | $ | - | $ | -6 | $ | 9 | $ | 312 | |
Allowance for premiums and | |||||||||||||||
insurances balances receivable | 624 | 14 | -74 | - | - | -4 | 560 | ||||||||
Allowance for reinsurance assets | 338 | -42 | -31 | - | - | 11 | 276 | ||||||||
Federal and foreign valuation | |||||||||||||||
allowance for deferred tax assets | 8,036 | -3,165 | - | -40 | - | -1,235 | 3,596 | ||||||||
2012 | |||||||||||||||
Allowance for mortgage and | |||||||||||||||
other loans receivable | $ | 740 | $ | -103 | $ | -44 | $ | -205 | $ | - | $ | 17 | $ | 405 | |
Allowance for premiums and | |||||||||||||||
insurances balances receivable | 484 | 174 | -36 | - | - | 2 | 624 | ||||||||
Allowance for reinsurance assets | 364 | -4 | -1 | - | - | -21 | 338 | ||||||||
Federal and foreign valuation | |||||||||||||||
allowance for deferred tax assets | 11,047 | -1,907 | - | - | - | -1,104 | 8,036 | ||||||||
* Includes recoveries of amounts previously charged off and reclassifications to/from other accounts. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
BASIS OF PRESENTATION | |
Sale of ILFC | Sale of ILFC |
On May 14, 2014, we completed the sale of 100 percent of the common stock of International Lease Finance Corporation (ILFC) to AerCap Ireland Limited, a wholly owned subsidiary of AerCap Holdings N.V. (AerCap), in exchange for total consideration of approximately $7.6 billion, including cash and 97.6 million newly issued AerCap common shares (the AerCap Transaction). The total value of the consideration was based in part on AerCap’s closing price per share of $47.01 on May 13, 2014. ILFC’s results of operations are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Consolidated Statements of Income through the date of the completion of the sale. ILFC’s assets and liabilities were classified as held-for-sale at December 31, 2013 in the Consolidated Balance Sheets. See Note 4 herein for further discussion. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of: | |
classification of ILFC as held for sale and related fair value measurement for applicable years; | |
income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize the net deferred tax asset; | |
liability for unpaid losses and loss adjustment expenses; | |
reinsurance assets; | |
valuation of future policy benefit liabilities and timing and extent of loss recognition; | |
valuation of liabilities for guaranteed benefit features of variable annuity products; | |
estimated gross profits to value deferred acquisition costs for investment-oriented products; | |
impairment charges, including other-than-temporary impairments on available for sale securities, impairments on investments in life settlements and goodwill impairment; | |
liability for legal contingencies; and | |
fair value measurements of certain financial assets and liabilities. | |
These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial conditions, results of operations and cash flows could be materially affected. | |
Presentation and Segment Changes | Presentation Changes |
Policy fees related to features accounted for as embedded derivatives in variable annuity products, including guaranteed minimum withdrawal benefits and guaranteed minimum account value benefits, are included in the fair value measurement of embedded derivatives. Effective December 31, 2014, we reclassified fees related to these embedded derivatives to Net realized capital gains, with no effect to the fair value measurement of the embedded derivatives, Income from continuing operations, Net income attributable to AIG, or Shareholders’ equity. Accordingly, a portion of prior period policy fees have been reclassified to Net realized capital gains to conform to the current period presentation. See Note 14 herein for our accounting policy and Note 5 for a discussion of the fair value measurement of embedded policy derivatives, including policy on classification of fees. | |
Revisions were made to change the classification of certain miscellaneous income from General operating and other expenses to Premiums and of certain broker-dealer fees from General operating and other expenses to Other income, to conform with the current period presentation, with no effect to Income from continuing operations or Net income attributable to AIG. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Held-for-Sale Classification, Divested Businesses and Discontinued Operations | Held-For-Sale Classification | ||||||||
We report a business as held for sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. Depreciation and amortization expense is not recorded on assets of a business after it is classified as held for sale. Assets and liabilities related to a business classified as held for sale are segregated in the Consolidated Balance Sheets in the period in which the business is classified as held for sale. | |||||||||
Discontinued Operations | |||||||||
We report the results of operations of a business as discontinued operations if the business is classified as held for sale, the operations and cash flows of the business have been or will be eliminated from our ongoing operations as a result of a disposal transaction and we will not have any significant continuing involvement in the operations of the business after the disposal transaction. The results of discontinued operations are reported in Discontinued Operations in the Consolidated Statements of Income for current and prior periods commencing in the period in which the business meets the criteria of a discontinued operation, and include any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell. | |||||||||
The results of operations for the following business is presented as discontinued operations in our Consolidated Statements of Income. | |||||||||
Investments | Fixed Maturity and Equity Securities | ||||||||
Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or are measured at fair value at our election. None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2014 or 2013. | |||||||||
Fixed maturity and equity securities classified as available for sale are carried at fair value. Unrealized gains and losses from available for sale investments in fixed maturity and equity securities are reported as a separate component of Accumulated other comprehensive income, net of deferred policy acquisition costs and deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity and equity securities measured at fair value at our election are reflected in Net investment income (for insurance subsidiaries) or Other income (for Corporate and Other). Investments in fixed maturity and equity securities are recorded on a trade-date basis. | |||||||||
Premiums and discounts arising from the purchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain RMBS, CMBS and CDO/ABS, (collectively, structured securities), recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that are not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For purchased credit impaired (PCI) securities, at acquisition, the difference between the undiscounted expected future cash flows and the recorded investment in the securities represents the initial accretable yield, which is to be accreted into net investment income over the securities’ remaining lives on a level-yield basis. Subsequently, effective yields recognized on PCI securities are recalculated and adjusted prospectively to reflect changes in the contractual benchmark interest rates on variable rate securities and any significant increases in undiscounted expected future cash flows arising due to reasons other than interest rate changes. | |||||||||
Other Invested Assets Carried at Fair Value | |||||||||
Certain hedge funds, private equity funds, affordable housing partnerships and other investment partnerships for which we have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income with the exception of investments of AIG’s Corporate and Other category, for which such changes are reported in Other income. Other investments in hedge funds, private equity funds, affordable housing partnerships and other investment partnerships in which our insurance operations do not hold aggregate interests sufficient to exercise more than minor influence over the respective partnerships are reported at fair value with changes in fair value recognized as a component of Accumulated other comprehensive income. These investments are subject to other-than-temporary impairment evaluations (see discussion below on evaluating equity investments for other-than-temporary impairment). The gross unrealized loss recorded in Other comprehensive income on such investments was $56 million and $15 million at December 31, 2014 and 2013, respectively, the majority of which pertains to investments in private equity funds and hedge funds that have been in continuous unrealized loss positions for less than 12 months. | |||||||||
Other Invested Assets – Equity Method Investments | |||||||||
We account for hedge funds, private equity funds, affordable housing partnerships and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating and financial policies, or we have elected the fair value option. Under the equity method of accounting, our carrying amount generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income with the exception of investments of AIG’s Corporate and Other category, for which such changes are reported in Other income. In applying the equity method of accounting, we consistently use the most recently available financial information provided by the general partner or manager of each of these investments, which is one to three months prior to the end of our reporting period. The financial statements of these investees are generally audited annually. | |||||||||
Other Investments | |||||||||
Also included in Other invested assets are real estate held for investment and aircraft asset investments held by non-Aircraft Leasing subsidiaries. These investments are reported at cost, less depreciation and are subject to impairment review, as discussed below. | |||||||||
Investments in Life Settlements | |||||||||
Investments in life settlements are accounted for under the investment method. Under the investment method, we recognize our initial investment in life settlements at the transaction price plus all initial direct external costs. Continuing costs to keep the policy in force, primarily life insurance premiums, increase the carrying amount of the investment. We recognize income on individual investments in life settlements when the insured dies, at an amount equal to the excess of the investment proceeds over the carrying amount of the investment at that time. These investments are subject to impairment review, as discussed below. | |||||||||
Net Investment Income | |||||||||
Net investment income represents income primarily from the following sources: | |||||||||
Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable. | |||||||||
Dividend income from common and preferred stocks and distributions from other investments. | |||||||||
Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option. | |||||||||
Earnings from alternative investments. | |||||||||
The difference between the carrying amount of an investment in life settlements and the life insurance proceeds of the underlying life insurance policy recorded in income upon the death of the insured. | |||||||||
Changes in the fair values of our interests in ML II and AIA securities prior to sale and change in the fair value of our interests in ML III prior to the FRBNY liquidation of ML III assets. | |||||||||
Net Realized Capital Gains and Losses | |||||||||
Net realized capital gains and losses are determined by specific identification. The net realized capital gains and losses are generated primarily from the following sources: | |||||||||
Sales of available for sale fixed maturity securities, available for sale equity securities and real estate. | |||||||||
Reductions to the cost basis of available for sale fixed maturity securities, available for sale equity securities and certain other invested assets for other-than-temporary impairments. | |||||||||
Impairments on investments in life settlements. | |||||||||
Changes in fair value of derivatives except for (1) those instruments at AIGFP that are not intermediated on behalf of other AIG subsidiaries and (2) those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized capital gains (losses). | |||||||||
Exchange gains and losses resulting from foreign currency transactions. | |||||||||
Evaluating Investments for Other-Than-Temporary Impairments | |||||||||
Fixed Maturity Securities | |||||||||
If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, an other-than-temporary impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized capital losses. When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. | |||||||||
For fixed maturity securities for which a credit impairment has occurred, the amortized cost is written down to the estimated recoverable value with a corresponding charge to realized capital losses. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not related to a credit impairment is presented in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized (a separate component of accumulated other comprehensive income). | |||||||||
When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class: | |||||||||
Current delinquency rates; | |||||||||
Expected default rates and the timing of such defaults; | |||||||||
Loss severity and the timing of any recovery; and | |||||||||
Expected prepayment speeds. | |||||||||
For corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers the fair value as the recoverable value when available information does not indicate that another value is more relevant or reliable. When management identifies information that supports a recoverable value other than the fair value, the determination of a recoverable value considers scenarios specific to the issuer and the security, and may be based upon estimates of outcomes of corporate restructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets. | |||||||||
We consider severe price declines in our assessment of potential credit impairments. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. | |||||||||
In periods subsequent to the recognition of an other-than-temporary impairment charge for available for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and the expected undiscounted recoverable value over the remaining expected holding period of the security. | |||||||||
Credit Impairments | |||||||||
The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities: | |||||||||
Years Ended December 31, | |||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||
Balance, beginning of year | $ | 3,872 | $ | 5,164 | $ | 6,504 | |||
Increases due to: | |||||||||
Credit impairments on new securities subject to impairment losses | 49 | 47 | 194 | ||||||
Additional credit impairments on previously impaired securities | 85 | 78 | 483 | ||||||
Reductions due to: | |||||||||
Credit impaired securities fully disposed for which there was no | |||||||||
prior intent or requirement to sell | -613 | -643 | -1,105 | ||||||
Credit impaired securities for which there is a current intent or | |||||||||
anticipated requirement to sell | - | - | -5 | ||||||
Accretion on securities previously impaired due to credit* | -725 | -774 | -915 | ||||||
Other | -9 | - | 8 | ||||||
Balance, end of year | $ | 2,659 | $ | 3,872 | $ | 5,164 | |||
* 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. | |||||||||
Equity Securities | |||||||||
We evaluate our available for sale equity securities for impairment by considering such securities as candidates for other-than-temporary impairment if they meet any of the following criteria: | |||||||||
The security has traded at a significant (25 percent or more) discount to cost for an extended period of time (nine consecutive months or longer); | |||||||||
A discrete credit event has occurred resulting in (i) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under the bankruptcy laws or any similar laws intended for court-supervised reorganization of insolvent enterprises; or (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than the par value of their claims; or | |||||||||
We have concluded that we may not realize a full recovery on our investment, regardless of the occurrence of one of the foregoing events. | |||||||||
The determination that an equity security is other-than-temporarily impaired requires the judgment of management and consideration of the fundamental condition of the issuer, its near-term prospects and all the relevant facts and circumstances. In addition to the above criteria, all equity securities that have been in a continuous decline in value below cost over twelve months are impaired. We also consider circumstances of a rapid and severe market valuation decline (50 percent or more) discount to cost, in which we could not reasonably assert that the impairment period would be temporary (severity losses). | |||||||||
Other Invested Assets | |||||||||
Our equity and cost method investments in private equity funds, hedge funds and other entities are evaluated for impairment similar to the evaluation of equity securities for impairments as discussed above. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investments and specific inherent risks. Such risks may evolve based on the nature of the underlying investments. | |||||||||
Our investments in life settlements are monitored for impairment on a contract-by-contract basis quarterly. An investment in life settlements is considered impaired if the undiscounted cash flows resulting from the expected proceeds from the investment in life settlements would not be sufficient to recover our estimated future carrying amount of the investment in life settlements, which is the current carrying amount for the investment in life settlements plus anticipated undiscounted future premiums and other capitalizable future costs, if any. Impaired investments in life settlements are written down to their estimated fair value which is determined on a discounted cash flow basis, incorporating current market longevity assumptions and market yields. | |||||||||
In general, fair value estimates for the investments in life settlements are calculated using cash flows based on medical underwriting ratings of the policies from a third-party underwriter, applied to an industry mortality table. Our mortality assumptions are based on an industry table as supplemented with proprietary data on the older age mortality of U.S. insured lives. Mortality improvement factors are applied to these assumptions based on our view of future mortality improvements likely to apply to the U.S. insured lives population. Our mortality assumptions coupled with the mortality improvement rates are used in our estimate of future net cash flows from the investments in life settlements. | |||||||||
Our investments in aircraft assets and real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compare expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings. | |||||||||
We also enter into agreements in which securities are purchased by us under agreements to resell (reverse repurchase agreements), which are accounted for as secured financing transactions and reported as Short-term investments or Other assets, depending on their terms. These agreements are recorded at their contracted resale amounts plus accrued interest, other than those that are accounted for at fair value. Such agreements entered into by the DIB are carried at fair value based on market observable interest rates. In all reverse repurchase transactions, we take possession of or obtain a security interest in the related securities, and we have the right to sell or repledge this collateral received. | |||||||||
Mortgage and other loans receivable include commercial mortgages, life insurance policy loans, commercial loans, and other loans and notes receivable. Commercial mortgages, commercial loans, and other loans and notes receivable are carried at unpaid principal balances less credit allowances and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned. | |||||||||
Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method. | |||||||||
Life insurance policy loans are carried at unpaid principal amount. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy. | |||||||||
Methodology Used to Estimate the Allowance for Losses | |||||||||
Mortgage and other loans receivable are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. Impairment of commercial mortgages is typically determined using the fair value of collateral while impairment of other loans is typically determined using the present value of cash flows or the loan’s observable market price. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on the analysis of internal risk ratings and current loan values. Internal risk ratings are assigned based on the consideration of risk factors including past due status, debt service coverage, loan-to-value ratio, property occupancy, profile of the borrower and of the major property tenants, economic trends in the market where the property is located, and condition of the property. These factors and the resulting risk ratings also provide a basis for determining the level of monitoring performed at both the individual loan and the portfolio level. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance. Interest income on impaired loans is recognized as cash is received. For impaired loans where it has been determined that not all of the contractual principal due will be collected, any cash received is recorded as a reduction of the current carrying amount of the loan. | |||||||||
A significant majority of commercial mortgage loans in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan. | |||||||||
Reinsurance | In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. In addition, our general insurance subsidiaries assume reinsurance from other insurance companies. We determine the portion of the incurred but not reported (IBNR) loss that will be recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss adjustment expenses incurred, ceded unearned premiums and ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for doubtful accounts requires judgment for which key inputs typically include historical trends regarding uncollectible balances, disputes and credit events as well as specific reviews of balances in dispute or subject to credit impairment. The allowance for doubtful accounts on reinsurance assets was $258 million and $276 million at December 31, 2014 and 2013, respectively. Changes in the allowance for doubtful accounts on reinsurance assets are reflected in Policyholder benefits and losses incurred within the Consolidated Statements of Income. | ||||||||
Deferred Policy Acquisition Costs | Deferred policy acquisition costs (DAC) represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such deferred policy acquisition costs generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analyzed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts. | ||||||||
We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates. | |||||||||
Short-duration insurance contracts: Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, generally 12 months. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC. We assess the recoverability of DAC on an annual basis or more frequently if circumstances indicate an impairment may have occurred. This assessment is performed by comparing recorded net unearned premiums and anticipated investment income on in-force business to the sum of expected losses and loss adjustment expenses incurred, unamortized DAC and maintenance costs. If the sum of these costs exceeds the amount of recorded net unearned premiums and anticipated investment income, the excess is recognized as an offset against the asset established for DAC. This offset is referred to as a premium deficiency charge. Increases in expected losses and loss adjustment expenses incurred can have a significant impact on the likelihood and amount of a premium deficiency charge. | |||||||||
Long-duration insurance contracts: Policy acquisition costs for participating life, traditional life and accident and health insurance products are generally deferred and amortized, with interest, over the premium paying period. The assumptions used to calculate the benefit liabilities and DAC for these traditional products are set when a policy is issued and do not change with changes in actual experience, unless a loss recognition event occurs. These “locked-in” assumptions include mortality, morbidity, persistency, maintenance expenses and investment returns, and include margins for adverse deviation to reflect uncertainty given that actual experience might deviate from these assumptions. A loss recognition event occurs when there is a shortfall between the carrying amounts of future policy benefit liabilities net of DAC and the amount the future policy benefit liabilities net of DAC would be when applying updated current assumptions. When we determine a loss recognition event has occurred, we first reduce any DAC related to that block of business through amortization of acquisition expense, and after DAC is depleted, we record additional liabilities through a charge to Policyholder benefits and losses incurred. Groupings for loss recognition testing are consistent with our manner of acquiring and servicing the business and applied by product groupings. We perform separate loss recognition tests for traditional life products, payout annuities and long-term care products. Once loss recognition has been recorded for a block of business, the old assumption set is replaced and the assumption set used for the loss recognition would then be subject to the lock-in principle. | |||||||||
Investment-oriented contracts: Policy acquisition costs and policy issuance costs related to universal life and investment-type products (collectively, investment-oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts. Estimated gross profits include net investment income and spreads, net realized investment gains and losses, fees, surrender charges, expenses, and mortality gains and losses. In each reporting period, current period amortization expense is adjusted to reflect actual gross profits. If estimated gross profits change significantly, DAC is recalculated using the new assumptions, and any resulting adjustment is included in income. If the new assumptions indicate that future estimated gross profits are higher than previously estimated, DAC will be increased resulting in a decrease in amortization expense and increase in income in the current period; if future estimated gross profits are lower than previously estimated, DAC will be decreased resulting in an increase in amortization expense and decrease in income in the current period. Updating such assumptions may result in acceleration of amortization in some products and deceleration of amortization in other products. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts. | |||||||||
To estimate future estimated gross profits for variable annuity products, a long-term annual asset growth assumption is applied to determine the future growth in assets and related asset-based fees. In determining the asset growth rate, the effect of short-term fluctuations in the equity markets is partially mitigated through the use of a “reversion to the mean” methodology whereby short-term asset growth above or below long-term annual rate assumptions impact the growth assumption applied to the five-year period subsequent to the current balance sheet date. The reversion to the mean methodology allows us to maintain our long-term growth assumptions, while also giving consideration to the effect of actual investment performance. When actual performance significantly deviates from the annual long-term growth assumption, as evidenced by growth assumptions in the five-year reversion to the mean period falling below a certain rate (floor) or above a certain rate (cap) for a sustained period, judgment may be applied to revise or “unlock” the growth rate assumptions to be used for both the five-year reversion to the mean period as well as the long-term annual growth assumption applied to subsequent periods. | |||||||||
Shadow DAC and Shadow Loss Recognition: DAC related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity and equity securities available for sale on estimated gross profits, with related changes recognized through Other comprehensive income (shadow DAC). The adjustment is made at each balance sheet date, as if the securities had been sold at their stated aggregate fair value and the proceeds reinvested at current yields. Similarly, for long-duration traditional insurance contracts, if the assets supporting the liabilities maintain a temporary net unrealized gain position at the balance sheet date, loss recognition testing assumptions are updated to exclude such gains from future cash flows by reflecting the impact of reinvestment rates on future yields. If a future loss is anticipated under this basis, any additional shortfall indicated by loss recognition tests is recognized as a reduction in accumulated other comprehensive income (shadow loss recognition). Similar to other loss recognition on long-duration insurance contracts, such shortfall is first reflected as a reduction in DAC and secondly as an increase in liabilities for future policy benefits. The change in these adjustments, net of tax, is included with the change in net unrealized appreciation of investments that is credited or charged directly to Other comprehensive income. | |||||||||
Internal Replacements of Long-duration and Investment-oriented Products: For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If the modification does not substantially change the contract, we do not change the accounting and amortization of existing DAC and related actuarial balances. If an internal replacement represents a substantial change, the original contract is considered to be extinguished and any related DAC or other policy balances are charged or credited to income, and any new deferrable costs associated with the replacement contract are deferred. | |||||||||
Value of Business Acquired (VOBA) is determined at the time of acquisition and is reported in the Consolidated Balance Sheets with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For participating life, traditional life and accident and health insurance products, VOBA is amortized over the life of the business in a manner similar to that for DAC based on the assumptions at purchase. For investment-oriented products, VOBA is amortized in relation to estimated gross profits and adjusted for the effect of unrealized gains or losses on fixed maturity and equity securities available for sale in a manner similar to DAC. | |||||||||
Derivatives and Hedge Accounting | We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. Interest rate, currency, equity and commodity swaps, credit contracts (including the super senior credit default swap portfolio), swaptions, options and forward transactions are accounted for as derivatives, recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. In certain instances, a contract’s transaction price is the best indication of initial fair value. Aggregate asset or liability positions are netted on the Consolidated Balance Sheets only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty. Cash collateral posted with counterparties in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset. | ||||||||
Derivatives, with the exception of bifurcated embedded derivatives, are reflected in the Consolidated Balance Sheets in Derivative assets, at fair value and Derivative liabilities, at fair value. A bifurcated embedded derivative is measured at fair value and accounted for in the same manner as a free standing derivative contract. The corresponding host contract is accounted for according to the accounting guidance applicable for that instrument. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. See Notes 5 and 14 herein for additional information on embedded policy derivatives. | |||||||||
Liability for unpaid claims and claims adjustment expense | Liability for Unpaid Losses and Loss Adjustment Expenses | ||||||||
The liability for unpaid losses and loss adjustment expenses represents the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and claim adjustments expenses, less applicable discount for future investment income. We continually review and update the methods used to determine loss reserve estimates and to establish the resulting reserves. Any adjustments resulting from this review are reflected currently in pre-tax income. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be recognized and confirmed. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as favorable development. | |||||||||
Future policy benefits for life and accident and health insurance contracts and policyholder contract deposits | Future Policy Benefits | ||||||||
Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements whereby a claimant has agreed to settle a general insurance claim in exchange for fixed payments over a fixed determinable period of time with a life contingency feature. | |||||||||
Future policy benefits also include certain guaranteed benefits of variable annuity products that are not considered embedded derivatives, primarily guaranteed minimum death benefits. See Note 14 for additional information on guaranteed death benefits. | |||||||||
Policyholder Contract Deposits | |||||||||
The liability for Policyholder contract deposits is primarily recorded at accumulated value (deposits received and net transfers from separate accounts, plus accrued interest credited at rates ranging from 0.3% to 8.4% at December 31, 2014, less withdrawals and assessed fees). Deposits collected on investment-oriented products are not reflected as revenues, because they are recorded directly to Policyholder contract deposits upon receipt. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenues. | |||||||||
In addition to liabilities for universal life, fixed annuities, fixed options within variable annuities, annuities without life contingencies, funding agreements and GICs, policyholder contract deposits also include our liability for (a) certain guaranteed benefits and indexed features accounted for as embedded derivatives at fair value, (b) annuities issued in a structured settlement arrangement with no life contingency and (c) certain contracts we have elected to account for at fair value. See Note 14 herein for additional information on guaranteed benefits accounted for as embedded derivatives. | |||||||||
Under a funding agreement-backed notes issuance program, an unaffiliated, non-consolidated statutory trust issues medium-term notes to investors, which are secured by GICs issued to the trust by one of our Life Insurance Companies through our Institutional Markets operating segment. During the year ended December 31, 2014, a $450 million GIC was issued in conjunction with the funding agreement-backed notes program. | |||||||||
Debt | Our long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts, hedge accounting valuation adjustments and fair value adjustments, when applicable. The interest rates presented in the following table reflect the range of contractual rates in effect at December 31, 2014, including fixed and variable rate issuances. | ||||||||
Contingencies, Commitments and Guarantees | In the normal course of business, various contingent liabilities and commitments are entered into by AIG and our subsidiaries. In addition, AIG Parent guarantees various obligations of certain subsidiaries. | ||||||||
Although AIG cannot currently quantify its ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on AIG’s consolidated financial condition or its consolidated results of operations or consolidated cash flows for an individual reporting period. | |||||||||
Legal Contingencies | |||||||||
Overview. In the normal course of business, AIG and our subsidiaries are, like others in the insurance and financial services industries in general, subject to litigation, including claims for punitive damages. In our insurance and mortgage guaranty operations, litigation arising from claims settlement activities is generally considered in the establishment of our liability for unpaid losses and loss adjustment expenses. However, the potential for increasing jury awards and settlements makes it difficult to assess the ultimate outcome of such litigation. AIG is also subject to derivative, class action and other claims asserted by its shareholders and others alleging, among other things, breach of fiduciary duties by its directors and officers and violations of insurance laws and regulations, as well as federal and state securities laws. In the case of any derivative action brought on behalf of AIG, any recovery would accrue to the benefit of AIG. | |||||||||
Noncontrolling Interests | Redeemable noncontrolling interest | ||||||||
Nonvoting, callable, junior preferred interests held by the Department of Treasury represented preferred interests in the AIA SPV and ALICO SPV. In connection with the execution of our orderly asset disposition plan, as well as the repayment of the FRBNY Credit Facility, we transferred two of our wholly-owned businesses, AIA and ALICO, to two newly created SPVs in exchange for all the common and preferred interests (the SPV Preferred Interests) of those SPVs. On December 1, 2009, AIG transferred the SPV Preferred Interests to the FRBNY in consideration for a $25 billion reduction of the outstanding loan balance and of the maximum amount of credit available under the FRBNY Credit Facility and amended the terms of the FRBNY Credit Facility. As part of the closing of the Recapitalization, the remaining SPV Preferred Interests, with an aggregate liquidation preference of approximately $20.3 billion at January 14, 2011, were purchased from the FRBNY by AIG and transferred to the Department of the Treasury as part of the consideration for the exchange of our Series F Preferred Stock. | |||||||||
The common interests, which we retained, entitled us to 100 percent of the voting power of the SPVs. The voting power allowed us to elect the boards of managers of the SPVs, who oversaw the management and operation of the SPVs. Primarily due to the substantive participation rights of the SPV Preferred Interests, the SPVs were determined to be VIEs. As the primary beneficiary of the SPVs, we consolidated the SPVs. | |||||||||
As a result of the closing of the Recapitalization on January 14, 2011, the SPV Preferred Interests held by the Department of the Treasury were no longer considered permanent equity on our Consolidated Balance Sheets, and were classified as redeemable noncontrolling interests. As part of the Recapitalization, we used approximately $6.1 billion of the cash proceeds from the sale of ALICO to pay down a portion of the liquidation preference of the SPV Preferred Interests. The liquidation preference of the SPV Preferred Interests was further reduced by approximately $12.4 billion using proceeds from the sale of AIG Star, AIG Edison, Nan Shan, and MetLife securities received in the sale of ALICO. During the first quarter of 2011, the remaining liquidation preference of the ALICO SPV Preferred Interests was paid in full. | |||||||||
The SPV Preferred Interests were measured at fair value on their issuance date. The SPV Preferred Interests initially had a liquidation preference of $25 billion and had a preferred return of five percent per year compounded quarterly through September 22, 2013 and nine percent thereafter. The preferred return is reflected in Net income from continuing operations attributable to noncontrolling interests - Nonvoting, callable, junior and senior preferred interests in the Consolidated Statements of Income. The difference between the SPV Preferred Interests’ fair value and the initial liquidation preference was amortized and included in Net income from continuing operations attributable to noncontrolling interests - Nonvoting, callable, junior and senior preferred interests. | |||||||||
During the first quarter of 2012, the liquidation preference of the AIA SPV Preferred Interests was paid down in full. | |||||||||
Non-redeemable noncontrolling interests | |||||||||
Non-redeemable noncontrolling interests include the equity interests of third-party shareholders in our consolidated subsidiaries and includes the preferred shareholders’ equity in outstanding preferred stock of ILFC, a wholly-owned subsidiary that was held for sale at December 31, 2013 and 2012. The preferred stock in ILFC consisted of 1,000 shares of market auction preferred stock (MAPS) in two series (Series A and B) of 500 shares each. Each of the MAPS shares had a liquidation value of $100,000 per share and was not convertible. Dividends on the MAPS were accounted for as a reduction of the noncontrolling interest. The dividend rate, other than the initial rate, for each dividend period for each series was reset approximately every seven weeks (49 days) on the basis of orders placed in an auction, provided such auctions were able to occur. The MAPS were transferred as part of the sale of ILFC. | |||||||||
On May 14, 2014, we completed the sale of International Lease Finance Corporation (ILFC) to AerCap Ireland Limited, a wholly owned subsidiary of AerCap Holdings N.V. (AerCap). See Note 4 – Held-For-Sale Classification and Discontinued Operations for further discussion. | |||||||||
Earnings Per Share | The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The diluted EPS computation is based on those shares used in the basic EPS computation plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits. | ||||||||
Income Taxes | Assessment of Deferred Tax Asset Valuation Allowance | ||||||||
The evaluation of the recoverability of the deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed. | |||||||||
Our framework for assessing the recoverability of deferred tax assets requires us to consider all available evidence, including: | |||||||||
the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; | |||||||||
the sustainability of recent operating profitability of our subsidiaries; | |||||||||
the predictability of future operating profitability of the character necessary to realize the net deferred tax asset; | |||||||||
the carryforward periods for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and, | |||||||||
prudent and feasible actions and tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset. | |||||||||
Revenues and expenses | Premiums for short-duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums written and earned on a pro rata basis over the term of the related coverage. In addition, certain miscellaneous income is included as premiums written and earned. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired terms of coverage. Reinsurance premiums are typically earned over the same period as the underlying policies or risks covered by the contract. As a result, the earnings pattern of a reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies throughout the year. | ||||||||
Reinsurance premiums ceded are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate. | |||||||||
Premiums for long-duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued. | |||||||||
Policy fees represent fees recognized from universal life and investment-type products consisting of policy charges for the cost of insurance, policy administration charges, surrender charges and amortization of unearned revenue reserves. | |||||||||
Aircraft leasing revenue from flight equipment under operating leases, through May 14, 2014, the date of disposal of ILFC, was recognized over the life of the leases as rental payments became receivable under the provisions of the leases or, in the case of leases with varying payments, under the straight-line method over the noncancelable term of the leases. In certain cases, leases provided for additional payments contingent on usage. In those cases, rental revenue was recognized at the time such usage occurred, net of estimated future contractual aircraft maintenance reimbursements. Gains on sales of flight equipment were recognized when flight equipment was sold and the risk of ownership of the equipment passed to the new owner. | |||||||||
Other income includes unrealized gains and losses on derivatives, including income from the Direct Investment book (DIB) unrealized market valuation gains and losses associated with the Global Capital Markets (GCM) super senior credit default swap (CDS) portfolio, advisory fee income from the Consumer Insurance broker dealer business, as well as legal settlements of $804 million, $1.2 billion and $200 million from legacy crisis and other matters in 2014, 2013 and 2012, respectively. | |||||||||
Other income from our Corporate and Other category consists of the following: | |||||||||
Change in fair value relating to financial assets and liabilities for which the fair value option has been elected. | |||||||||
Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable. | |||||||||
Dividend income from common and preferred stock and distributions from other investments. | |||||||||
Changes in the fair value of other securities sold but not yet purchased, futures, hybrid financial instruments, securities purchased under agreements to resell, and securities sold under agreements to repurchase. | |||||||||
Income earned on real estate based investments and related realized gains and losses from sales, property level impairments and financing costs. | |||||||||
Exchange gains and losses resulting from foreign currency transactions. | |||||||||
Earnings from private equity funds and hedge fund investments accounted for under the equity method. | |||||||||
Gains and losses recognized in earnings on derivatives for the effective portion and their related hedged items. | |||||||||
Aircraft leasing expenses through May 14, 2014, the date of disposal of ILFC, consisted of ILFC interest expense, depreciation expense, impairment charges, fair value adjustments and lease-related charges on aircraft as well as selling, general and administrative expenses and other expenses incurred by ILFC. | |||||||||
Cash | Cash represents cash on hand and non-interest- bearing demand deposits. | ||||||||
Premiums and other receivables - net | Premiums and other receivables – net of allowance include premium balances receivable, amounts due from agents and brokers and policyholders, trade receivables for the DIB and GCM and other receivables. Trade receivables for GCM include cash collateral posted to derivative counterparties that is not eligible to be netted against derivative liabilities. The allowance for doubtful accounts on premiums and other receivables was $428 million and $554 million at December 31, 2014 and 2013, respectively. | ||||||||
Other assets | Other assets consist of sales inducement assets, prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, and restricted cash. | ||||||||
We offer sales inducements which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. Sales inducements provided to the contract holder are recognized in Policyholder contract deposits in the Consolidated Balance Sheets. Such amounts are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC (see Note 9 herein). To qualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception. We must also demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest, and are higher than the contract’s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets totaled $629 million and $703 million at December 31, 2014 and 2013, respectively. The amortization expense associated with these assets is reported within Interest credited to policyholder account balances in the Consolidated Statements of Income. Such amortization expense totaled $63 million, $102 million and $162 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
The cost of buildings and furniture and equipment is depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and equipment). Expenditures for maintenance and repairs are charged to income as incurred and expenditures for improvements are capitalized and depreciated. We periodically assess the carrying amount of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized using the straight-line method over a period generally not exceeding five years. Real estate, fixed assets and other long-lived assets are assessed for impairment when impairment indicators exist. | |||||||||
Goodwill | Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is tested for impairment annually or more frequently if circumstances indicate an impairment may have occurred. We assess goodwill for impairment at one level below our reportable segments. At December 31, 2014, in consideration of the 2014 segment changes, our reporting units with goodwill are Commercial Insurance - Property Casualty, Consumer Insurance - Personal Insurance, and Consumer Insurance - Life. When a business is transferred from one reporting unit to another, as occurred with the transfer of a portion of the Consumer Insurance - Personal Insurance to Consumer Insurance – Life, as part of the 2014 segment changes, goodwill at the original reporting unit is allocated among reporting units based on the fair value of business transferred, relative to business retained by a reporting unit. | ||||||||
The impairment assessment involves an option to first assess qualitative factors to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not performed, or after assessing the totality of the events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the impairment assessment involves a two-step process in which a quantitative assessment for potential impairment is performed. | |||||||||
If the qualitative test is not performed or if the test indicates a potential impairment is present, we estimate the fair value of each reporting unit and compare the estimated fair value with the carrying amount of the reporting unit, including allocated goodwill. The estimate of a reporting unit’s fair value involves management judgment and is based on one or a combination of approaches including discounted expected future cash flows, market-based earnings multiples of the unit’s peer companies, external appraisals or, in the case of reporting units being considered for sale, third-party indications of fair value, if available. We consider one or more of these estimates when determining the fair value of a reporting unit to be used in the impairment test. | |||||||||
If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill is not impaired. If the carrying value of a reporting unit exceeds its estimated fair value, goodwill associated with that reporting unit potentially is impaired. The amount of impairment, if any, is measured as the excess of the carrying value of the goodwill over the implied fair value of the goodwill. The implied fair value of the goodwill is measured as the excess of the fair value of the reporting unit over the amounts that would be assigned to the reporting unit’s assets and liabilities in a hypothetical business combination. An impairment charge is recognized in earnings to the extent of the excess of carrying value over fair value. | |||||||||
Goodwill was not impaired at December 31, 2014 based on the results of the goodwill impairment test. | |||||||||
The following table presents the changes in goodwill by reportable segment: | |||||||||
(in millions) | Commercial | Consumer | Other | Total | |||||
Balance at January 1, 2012: | |||||||||
Goodwill - gross | $ | 2,325 | $ | 2,502 | $ | 23 | $ | 4,850 | |
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | 1,059 | 291 | 23 | 1,373 | |||||
Increase (decrease) due to: | |||||||||
Acquisition | 119 | - | - | 119 | |||||
Other | - | - | -23 | -23 | |||||
Balance at December 31, 2012: | |||||||||
Goodwill - gross | 2,444 | 2,502 | - | 4,946 | |||||
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | 1,178 | 291 | - | 1,469 | |||||
Increase (decrease) due to: | |||||||||
Other | 6 | - | - | 6 | |||||
Balance at December 31, 2013: | |||||||||
Goodwill - gross | 2,450 | 2,502 | - | 4,952 | |||||
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | 1,184 | 291 | - | 1,475 | |||||
Increase (decrease) due to: | |||||||||
Acquisition | - | 28 | - | 28 | |||||
Other | -49 | - | - | -49 | |||||
Balance at December 31, 2014: | |||||||||
Goodwill - gross | 2,401 | 2,530 | - | 4,931 | |||||
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | $ | 1,135 | $ | 319 | $ | - | $ | 1,454 | |
Separate accounts | Separate accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment objectives and the assets are carried at fair value. The assets of each account are legally segregated and are not subject to claims that arise from any of our other businesses. The liabilities for these accounts are equal to the account assets. For a more detailed discussion of separate accounts, see Note 14 herein. | ||||||||
Other policyholder funds | Other policyholder funds are reported at cost and include any policyholder funds on deposit that encompass premium deposits and similar items, including liabilities for dividends arising out of participating business, reserves for experience-rated group products and unearned revenue reserves (URR). URR consist of front end loads on interest-sensitive contracts, representing those policy loads that are non-level and typically higher in initial policy years than in later policy years. URR for interest-sensitive life insurance policies are generally deferred and amortized, with interest, in relation to the incidence of estimated gross profits (EGPs) - to be realized over the estimated lives of the contracts and are subject to the same adjustments due to changes in the assumptions underlying EGPs as DAC. | ||||||||
Other liabilities | Other liabilities consist of other funds on deposit, other payables, securities sold under agreements to repurchase and securities sold but not yet purchased. We have entered into certain insurance and reinsurance contracts, primarily in our Non-Life Insurance Companies segment, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. Accordingly, the premiums received on such contracts, after deduction for certain related expenses, are recorded as deposits within Other liabilities in the Consolidated Balance Sheets. Net proceeds of these deposits are invested and generate Net investment income. As amounts are paid, consistent with the underlying contracts, the deposit liability is reduced. Also included in Other liabilities are trade payables for the DIB and GCM, which include option premiums received and payables to counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due to clearing brokers and exchanges. Trade payables for GCM also include cash collateral received from derivative counterparties that contractually cannot be netted against derivative assets. | ||||||||
Securities sold but not yet purchased represent sales of securities not owned at the time of sale. The obligations arising from such transactions are recorded on a trade-date basis and carried at fair value. Fair values of securities sold but not yet purchased are based on current market prices. | |||||||||
Foreign currency | Foreign currency: Financial statement accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in Total AIG shareholders’ equity. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a consolidated entity are translated into that entity’s functional currency. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income. Exchange gains and losses resulting from foreign currency transactions are recorded in income. | ||||||||
Future Application of Accounting Standards | Future Application of Accounting Standards | ||||||||
Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | |||||||||
In January 2014, the FASB issued an accounting standard that clarifies that a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, so that the loan is derecognized and the real estate property is recognized, when either (i) the creditor obtains legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveys all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. | |||||||||
The standard is effective for interim and annual reporting periods beginning after December 15, 2014. Early adoption is permitted. We plan to adopt the standard on its required effective date of January 1, 2015 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |||||||||
Reporting Discontinued Operations | |||||||||
In April 2014, the FASB issued an accounting standard that changes the requirements for presenting a component or group of components of an entity as a discontinued operation and requires new disclosures. Under the standard, the disposal of a component or group of components of an entity should be reported as a discontinued operation if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Disposals of equity method investments, or those reported as held-for-sale, must be presented as a discontinued operation if they meet the new definition. The standard also requires entities to provide disclosures about the disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation. | |||||||||
The standard is effective prospectively for all disposals of components (or classification of components as held-for-sale) of an entity that occur within interim and annual periods beginning on or after December 15, 2014. Early adoption is permitted, but only for disposals (or classifications of components as held-for-sale) that have not been reported in financial statements previously issued. We plan to adopt the standard on its required effective date of January 1, 2015 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |||||||||
Revenue Recognition | |||||||||
In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and other agreements that are governed under other GAAP guidance, but affects the revenue recognition for certain of our other activities. | |||||||||
The standard is effective for interim and annual reporting periods beginning after December 15, 2016 and may be applied retrospectively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is not permitted. We plan to adopt the standard on its required effective date of January 1, 2017 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. | |||||||||
Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures | |||||||||
In June 2014, the FASB issued an accounting standard that changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. The standard aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements such that they all will be accounted for as secured borrowings. The standard eliminates sale accounting for repurchase-to-maturity transactions and supersedes the standard under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. | |||||||||
The accounting standard and new disclosure requirements for certain transactions accounted for as sales are effective for interim and annual reporting periods beginning after December 15, 2014, while the disclosure requirements for transactions accounted for as secured borrowings are effective for annual reporting periods beginning after December 15, 2014 and for interim reporting periods beginning after March 15, 2015. Early adoption is not permitted. We plan to adopt the standard on its required effective dates and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |||||||||
Accounting for Share-Based Payments with Performance Targets | |||||||||
In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. | |||||||||
The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The standard may be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. We plan to adopt the standard on its required effective date of January 1, 2016 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows. | |||||||||
Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity | |||||||||
In August 2014, the FASB issued an accounting standard that allows a reporting entity to measure the financial assets and financial liabilities of a qualifying consolidated collateralized financing entity using the fair value of either its financial assets or financial liabilities, whichever is more observable. | |||||||||
The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The standard may be applied retrospectively to all relevant prior periods presented starting with January 1, 2010 or through a cumulative effect adjustment to retained earnings at the date of adoption. We plan to adopt the standard on its required effective date of January 1, 2016 and are assessing the impact of the standard on our consolidated financial condition, results of operations or cash flows | |||||||||
Consolidation: Amendments to the Consolidation Analysis | |||||||||
In February 2015, the FASB issued an accounting standard that affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. | |||||||||
The standard is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The standard may be applied retrospectively or through a cumulative effect adjustment to retained earnings as of the beginning of the year of adoption. We plan to adopt the standard on its required effective date of January 1, 2016 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows. | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Accounting Standards Adopted | Accounting Standards Adopted During 2014 | ||||||||
Certain Obligations Resulting from Joint and Several Liability Arrangements | |||||||||
In February 2013, the Financial Accounting Standards Board (FASB) issued an accounting standard that requires us to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date as the sum of (i) the amount we agreed to pay on the basis of our arrangement among our co-obligors and (ii) any additional amount we expect to pay on behalf of our co-obligors. | |||||||||
We adopted the standard on its required effective date of January 1, 2014. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |||||||||
Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of an Investment within a Foreign Entity or of an Investment in a Foreign Entity | |||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Schedule of changes in goodwill by reportable segment | |||||||||
(in millions) | Commercial | Consumer | Other | Total | |||||
Balance at January 1, 2012: | |||||||||
Goodwill - gross | $ | 2,325 | $ | 2,502 | $ | 23 | $ | 4,850 | |
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | 1,059 | 291 | 23 | 1,373 | |||||
Increase (decrease) due to: | |||||||||
Acquisition | 119 | - | - | 119 | |||||
Other | - | - | -23 | -23 | |||||
Balance at December 31, 2012: | |||||||||
Goodwill - gross | 2,444 | 2,502 | - | 4,946 | |||||
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | 1,178 | 291 | - | 1,469 | |||||
Increase (decrease) due to: | |||||||||
Other | 6 | - | - | 6 | |||||
Balance at December 31, 2013: | |||||||||
Goodwill - gross | 2,450 | 2,502 | - | 4,952 | |||||
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | 1,184 | 291 | - | 1,475 | |||||
Increase (decrease) due to: | |||||||||
Acquisition | - | 28 | - | 28 | |||||
Other | -49 | - | - | -49 | |||||
Balance at December 31, 2014: | |||||||||
Goodwill - gross | 2,401 | 2,530 | - | 4,931 | |||||
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | $ | 1,135 | $ | 319 | $ | - | $ | 1,454 |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
SEGMENT INFORMATION | ||||||||||||||
Schedule of continuing operations by reportable segment | Net | Depreciation | Pre-Tax | |||||||||||
Total | Investment | Interest | and | Operating | ||||||||||
(in millions) | Revenues | Income | Expense | Amortization | Income (Loss) | |||||||||
2014 | ||||||||||||||
Commercial Insurance | ||||||||||||||
Property Casualty | $ | 25,183 | $ | 4,298 | $ | - | $ | 2,445 | $ | 4,248 | ||||
Mortgage Guaranty | 1,042 | 138 | - | 56 | 592 | |||||||||
Institutional Markets | 2,576 | 1,957 | 7 | -215 | 670 | |||||||||
Total Commercial Insurance | 28,801 | 6,393 | 7 | 2,286 | 5,510 | |||||||||
Consumer Insurance | ||||||||||||||
Retirement | 9,784 | 6,489 | 23 | -231 | 3,495 | |||||||||
Life | 6,321 | 2,199 | 7 | 130 | 580 | |||||||||
Personal Insurance | 12,364 | 394 | 2 | 2,067 | 399 | |||||||||
Total Consumer Insurance | 28,469 | 9,082 | 32 | 1,966 | 4,474 | |||||||||
Corporate and Other | ||||||||||||||
Direct Investment book | 1,479 | - | 218 | -40 | 1,241 | |||||||||
Global Capital Markets | 474 | - | - | - | 359 | |||||||||
AIG Parent and Other* | 2,960 | 700 | 1,598 | 386 | -1,989 | |||||||||
Aircraft Leasing | - | - | - | - | - | |||||||||
Consolidation and elimination | -716 | - | -11 | - | 1 | |||||||||
Total Corporate and Other | 4,197 | 700 | 1,805 | 346 | -388 | |||||||||
AIG Consolidation and elimination | -466 | -356 | -126 | -181 | -22 | |||||||||
Total AIG Consolidated pre-tax operating income | $ | 61,001 | $ | 15,819 | $ | 1,718 | $ | 4,417 | $ | 9,574 | ||||
Reconciling Items from pre-tax operating income to pre-tax income: | ||||||||||||||
Changes in fair values of fixed maturity securities designated to hedge | ||||||||||||||
living benefit liabilities, net of interest expense | 260 | 260 | - | - | 260 | |||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to | ||||||||||||||
net realized capital gains | - | - | - | - | -217 | |||||||||
Loss on extinguishment of debt | - | - | - | - | -2,282 | |||||||||
Net realized capital gains | 739 | - | - | - | 739 | |||||||||
Income from divested businesses | 1,602 | - | - | 31 | 2,169 | |||||||||
Legal settlements related to legacy crisis matters | 804 | - | - | - | 804 | |||||||||
Legal reserves related to legacy crisis matters | - | - | - | - | -546 | |||||||||
Pre-tax income | $ | 64,406 | $ | 16,079 | $ | 1,718 | $ | 4,448 | $ | 10,501 | ||||
2013 | ||||||||||||||
Commercial Insurance | ||||||||||||||
Property Casualty | $ | 25,108 | $ | 4,431 | $ | 8 | $ | 2,393 | $ | 4,095 | ||||
Mortgage Guaranty | 941 | 132 | - | 50 | 205 | |||||||||
Institutional Markets | 2,813 | 2,090 | 1 | -160 | 680 | |||||||||
Total Commercial Insurance | 28,862 | 6,653 | 9 | 2,283 | 4,980 | |||||||||
Consumer Insurance | ||||||||||||||
Retirement | 9,431 | 6,628 | 3 | -165 | 3,490 | |||||||||
Life | 6,397 | 2,269 | 4 | 214 | 806 | |||||||||
Personal Insurance | 12,832 | 455 | 3 | 2,110 | 268 | |||||||||
Total Consumer Insurance | 28,660 | 9,352 | 10 | 2,159 | 4,564 | |||||||||
Corporate and Other | ||||||||||||||
Direct Investment book | 1,825 | - | 353 | -80 | 1,448 | |||||||||
Global Capital Markets | 833 | - | - | - | 625 | |||||||||
AIG Parent and Other* | 1,908 | 309 | 2,112 | 301 | -2,396 | |||||||||
Aircraft Leasing | - | - | - | - | - | |||||||||
Consolidation and elimination | -547 | - | -14 | - | 4 | |||||||||
Total Corporate and Other | 4,019 | 309 | 2,451 | 221 | -319 | |||||||||
AIG Consolidation and elimination | -17 | -343 | -328 | -26 | 165 | |||||||||
Total AIG Consolidated pre-tax operating income | $ | 61,524 | $ | 15,971 | $ | 2,142 | $ | 4,637 | $ | 9,390 | ||||
Reconciling Items from pre-tax operating income to pre-tax income: | ||||||||||||||
Changes in fair values of fixed maturity securities designated to hedge | ||||||||||||||
living benefit liabilities, net of interest expense | -161 | -161 | - | - | -161 | |||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to | ||||||||||||||
net realized capital gains | - | - | - | - | -1,608 | |||||||||
Other income (expense) - net | - | - | - | - | -72 | |||||||||
Loss on extinguishment of debt | - | - | - | - | -651 | |||||||||
Net realized capital gains | 1,939 | - | - | - | 1,939 | |||||||||
Loss from divested businesses | 4,420 | - | - | 76 | -177 | |||||||||
Legal settlements related to legacy crisis matters | 1,152 | - | - | - | 1,152 | |||||||||
Legal reserves related to legacy crisis matters | - | - | - | - | -444 | |||||||||
Pre-tax income | $ | 68,874 | $ | 15,810 | $ | 2,142 | $ | 4,713 | $ | 9,368 | ||||
2012 | ||||||||||||||
Commercial Insurance | ||||||||||||||
Property Casualty | $ | 24,799 | $ | 3,951 | $ | 6 | $ | 2,736 | $ | 1,681 | ||||
Mortgage Guaranty | 861 | 146 | - | 44 | 9 | |||||||||
Institutional Markets | 2,626 | 2,066 | - | -40 | 525 | |||||||||
Total Commercial Insurance | 28,286 | 6,163 | 6 | 2,740 | 2,215 | |||||||||
Consumer Insurance | ||||||||||||||
Retirement | 8,709 | 6,502 | - | 1 | 2,801 | |||||||||
Life | 6,457 | 2,283 | 4 | 267 | 736 | |||||||||
Personal Insurance | 13,580 | 477 | - | 2,106 | 199 | |||||||||
Total Consumer Insurance | 28,746 | 9,262 | 4 | 2,374 | 3,736 | |||||||||
Corporate and Other | ||||||||||||||
Direct Investment book | 1,607 | - | 369 | -121 | 1,215 | |||||||||
Global Capital Markets | 749 | - | - | - | 557 | |||||||||
Retained Interest | 4,957 | 4,957 | - | - | 4,957 | |||||||||
AIG Parent and Other* | 2,028 | 459 | 2,264 | 316 | -2,724 | |||||||||
Aircraft Leasing | - | - | - | - | - | |||||||||
Consolidation and elimination | -405 | - | -27 | - | - | |||||||||
Total Corporate and Other | 8,936 | 5,416 | 2,606 | 195 | 4,005 | |||||||||
AIG Consolidation and elimination | -589 | -535 | -297 | -2 | -18 | |||||||||
Total AIG Consolidated pre-tax operating income | $ | 65,379 | $ | 20,306 | $ | 2,319 | $ | 5,307 | $ | 9,938 | ||||
Reconciling Items from pre-tax operating income to pre-tax income: | ||||||||||||||
Changes in fair values of fixed maturity securities designated to hedge | ||||||||||||||
living benefit liabilities, net of interest expense | 37 | 37 | - | - | 37 | |||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to | ||||||||||||||
net realized capital gains | - | - | - | - | -1,213 | |||||||||
Loss on extinguishment of debt | - | - | - | - | -32 | |||||||||
Net realized capital gains | 1,086 | - | - | - | 1,086 | |||||||||
Loss from divested businesses | 4,502 | - | - | 2,042 | -6,411 | |||||||||
Legal settlements related to legacy crisis matters | 210 | - | - | - | 210 | |||||||||
Legal reserves related to legacy crisis matters | - | - | - | - | -754 | |||||||||
Non-qualifying derivative hedging gains, excluding net RCG | - | - | - | - | 30 | |||||||||
Pre-tax income | $ | 71,214 | $ | 20,343 | $ | 2,319 | $ | 7,349 | $ | 2,891 | ||||
* Includes Run-off Insurance Lines and Other Businesses. | ||||||||||||||
Schedule of year-end identifiable assets and capital expenditures by reportable segment | Year-End Identifiable Assets | Capital Expenditures | ||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Total Non-Life Insurance Companies | $ | 164,299 | $ | 168,738 | $ | 697 | $ | 370 | ||||||
Total Life Insurance Companies | 301,295 | 287,464 | 114 | 66 | ||||||||||
Corporate and Other | ||||||||||||||
Direct Investment book | 15,263 | 23,541 | - | - | ||||||||||
Global Capital Markets | 3,270 | 6,406 | - | - | ||||||||||
AIG Parent and Other | 91,277 | 88,270 | 523 | 413 | ||||||||||
Aircraft Leasing* | - | 39,313 | 498 | 1,883 | ||||||||||
Consolidation and Elimination | 49,584 | 34,031 | - | - | ||||||||||
Total Corporate and Other | 159,394 | 191,561 | 1,021 | 2,296 | ||||||||||
AIG Consolidation and Elimination | -109,407 | -106,434 | - | - | ||||||||||
Total Assets | $ | 515,581 | $ | 541,329 | $ | 1,832 | $ | 2,732 | ||||||
* 2013 includes Aircraft Leasing assets classified as assets held-for-sale on the Consolidated Balance Sheets. | ||||||||||||||
Schedule of entity's consolidated operations and long-lived assets by major geographic area | Real Estate and Other Fixed Assets, | |||||||||||||
Total Revenues* | Net of Accumulated Depreciation | |||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||
U.S. | $ | 44,274 | $ | 46,078 | $ | 47,406 | $ | 1,886 | $ | 1,606 | $ | 1,391 | ||
Asia Pacific | 7,523 | 8,804 | 9,498 | 521 | 448 | 516 | ||||||||
Other Foreign | 12,609 | 13,992 | 14,310 | 293 | 261 | 306 | ||||||||
Consolidated | $ | 64,406 | $ | 68,874 | $ | 71,214 | $ | 2,700 | $ | 2,315 | $ | 2,213 | ||
* Revenues are generally reported according to the geographic location of the reporting unit. |
HELDFORSALE_CLASSIFICATION_DIV1
HELD-FOR-SALE CLASSIFICATION, DIVESTED BUSINESSES AND DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
HELD-FOR-SALE CLASSIFICATION, DIVESTED BUSINESSES AND DISCONTINUED OPERATIONS | |||||||
Summary of assets and liabilities held for sale | December 31, | ||||||
(in millions) | 2013 | ||||||
Assets: | |||||||
Equity securities | $ | 3 | |||||
Mortgage and other loans receivable, net | 229 | ||||||
Flight equipment primarily under operating leases, net of accumulated depreciation | 35,508 | ||||||
Short-term investments | 658 | ||||||
Cash | 88 | ||||||
Premiums and other receivables, net of allowance | 318 | ||||||
Other assets | 2,066 | ||||||
Assets held for sale | 38,870 | ||||||
Less: Loss accrual | -9,334 | ||||||
Total assets held for sale | $ | 29,536 | |||||
Liabilities: | |||||||
Other liabilities | $ | 3,127 | |||||
Long-term debt | 21,421 | ||||||
Total liabilities held for sale | $ | 24,548 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Summary of income (loss) from discontinued operations | Years Ended December 31, | ||||||
(in millions) | 2014 | 2013 | 2012 | ||||
Gain on sale | $ | 23 | $ | 150 | $ | 1 | |
Income from discontinued operations, before income tax expense | 23 | 150 | 1 | ||||
Income tax expense | 73 | 66 | - | ||||
Income from discontinued operations, net of income tax expense | $ | -50 | $ | 84 | $ | 1 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | 31-Dec-14 | 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 | $ | 322 | $ | 2,670 | $ | - | $ | - | $ | - | $ | 2,992 | |||||
Obligations of states, municipalities and political subdivisions | - | 25,500 | 2,159 | - | - | 27,659 | |||||||||||
Non-U.S. governments | 742 | 20,323 | 30 | - | - | 21,095 | |||||||||||
Corporate debt | - | 142,550 | 1,883 | - | - | 144,433 | |||||||||||
RMBS | - | 20,715 | 16,805 | - | - | 37,520 | |||||||||||
CMBS | - | 10,189 | 2,696 | - | - | 12,885 | |||||||||||
CDO/ABS | - | 7,165 | 6,110 | - | - | 13,275 | |||||||||||
Total bonds available for sale | 1,064 | 229,112 | 29,683 | - | - | 259,859 | |||||||||||
Other bond securities: | |||||||||||||||||
U.S. government and government sponsored entities | 130 | 5,368 | - | - | - | 5,498 | |||||||||||
Obligations of states, municipalities and political subdivisions | - | 122 | - | - | - | 122 | |||||||||||
Non-U.S. governments | - | 2 | - | - | - | 2 | |||||||||||
Corporate debt | - | 719 | - | - | - | 719 | |||||||||||
RMBS | - | 989 | 1,105 | - | - | 2,094 | |||||||||||
CMBS | - | 708 | 369 | - | - | 1,077 | |||||||||||
CDO/ABS | - | 2,751 | 7,449 | - | - | 10,200 | |||||||||||
Total other bond securities | 130 | 10,659 | 8,923 | - | - | 19,712 | |||||||||||
Equity securities available for sale: | |||||||||||||||||
Common stock | 3,626 | 2 | 1 | - | - | 3,629 | |||||||||||
Preferred stock | 25 | - | - | - | - | 25 | |||||||||||
Mutual funds | 738 | 3 | - | - | - | 741 | |||||||||||
Total equity securities available for sale | 4,389 | 5 | 1 | - | - | 4,395 | |||||||||||
Other equity securities | 1,024 | 25 | - | - | - | 1,049 | |||||||||||
Mortgage and other loans receivable | - | - | 6 | - | - | 6 | |||||||||||
Other invested assets | 2 | 3,742 | 5,650 | - | - | 9,394 | |||||||||||
Derivative assets: | |||||||||||||||||
Interest rate contracts (b) | 2 | 3,729 | 12 | - | - | 3,743 | |||||||||||
Foreign exchange contracts(b) | - | 839 | 1 | - | - | 840 | |||||||||||
Equity contracts | 98 | 58 | 51 | - | - | 207 | |||||||||||
Commodity contracts | - | - | - | - | - | - | |||||||||||
Credit contracts | - | - | 4 | - | - | 4 | |||||||||||
Other contracts | - | - | 31 | - | - | 31 | |||||||||||
Counterparty netting and cash collateral | - | - | - | -2,102 | -1,119 | -3,221 | |||||||||||
Total derivative assets | 100 | 4,626 | 99 | -2,102 | -1,119 | 1,604 | |||||||||||
Short-term investments | 584 | 1,100 | - | - | - | 1,684 | |||||||||||
Separate account assets | 73,939 | 6,097 | - | - | - | 80,036 | |||||||||||
Other assets | - | - | - | - | - | - | |||||||||||
Total | $ | 81,232 | $ | 255,366 | $ | 44,362 | $ | -2,102 | $ | -1,119 | $ | 377,739 | |||||
Liabilities: | |||||||||||||||||
Policyholder contract deposits | $ | - | $ | 52 | $ | 1,509 | $ | - | $ | - | $ | 1,561 | |||||
Other policyholder funds | - | 8 | - | - | - | 8 | |||||||||||
Derivative liabilities: | |||||||||||||||||
Interest rate contracts | - | 3,047 | 86 | - | - | 3,133 | |||||||||||
Foreign exchange contracts | - | 1,482 | 9 | - | - | 1,491 | |||||||||||
Equity contracts | - | 98 | 4 | - | - | 102 | |||||||||||
Commodity contracts | - | 6 | - | - | - | 6 | |||||||||||
Credit contracts | - | - | 982 | - | - | 982 | |||||||||||
Other contracts | - | - | 90 | - | - | 90 | |||||||||||
Counterparty netting and cash collateral | - | - | - | -2,102 | -1,429 | -3,531 | |||||||||||
Total derivative liabilities | - | 4,633 | 1,171 | -2,102 | -1,429 | 2,273 | |||||||||||
Long-term debt | - | 5,253 | 213 | - | - | 5,466 | |||||||||||
Other liabilities | 34 | 316 | - | - | - | 350 | |||||||||||
Total | $ | 34 | $ | 10,262 | $ | 2,893 | $ | -2,102 | $ | -1,429 | $ | 9,658 | |||||
31-Dec-13 | 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 | $ | 133 | $ | 3,062 | $ | - | $ | - | $ | - | $ | 3,195 | |||||
Obligations of states, municipalities and political subdivisions | - | 28,300 | 1,080 | - | - | 29,380 | |||||||||||
Non-U.S. governments | 508 | 21,985 | 16 | - | - | 22,509 | |||||||||||
Corporate debt | - | 143,297 | 1,255 | - | - | 144,552 | |||||||||||
RMBS | - | 21,207 | 14,941 | - | - | 36,148 | |||||||||||
CMBS | - | 5,747 | 5,735 | - | - | 11,482 | |||||||||||
CDO/ABS | - | 4,034 | 6,974 | - | - | 11,008 | |||||||||||
Total bonds available for sale | 641 | 227,632 | 30,001 | - | - | 258,274 | |||||||||||
Other bond securities: | |||||||||||||||||
U.S. government and government sponsored entities | 78 | 5,645 | - | - | - | 5,723 | |||||||||||
Obligations of states, municipalities and political subdivisions | - | 121 | - | - | - | 121 | |||||||||||
Non-U.S. governments | - | 2 | - | - | - | 2 | |||||||||||
Corporate debt | - | 1,169 | - | - | - | 1,169 | |||||||||||
RMBS | - | 1,326 | 937 | - | - | 2,263 | |||||||||||
CMBS | - | 509 | 844 | - | - | 1,353 | |||||||||||
CDO/ABS | - | 3,158 | 8,834 | - | - | 11,992 | |||||||||||
Total other bond securities | 78 | 11,930 | 10,615 | - | - | 22,623 | |||||||||||
Equity securities available for sale: | |||||||||||||||||
Common stock | 3,218 | - | 1 | - | - | 3,219 | |||||||||||
Preferred stock | - | 27 | - | - | - | 27 | |||||||||||
Mutual funds | 408 | 2 | - | - | - | 410 | |||||||||||
Total equity securities available for sale | 3,626 | 29 | 1 | - | - | 3,656 | |||||||||||
Other equity securities | 750 | 84 | - | - | - | 834 | |||||||||||
Mortgage and other loans receivable | - | - | - | - | - | - | |||||||||||
Other invested assets | 1 | 2,667 | 5,930 | - | - | 8,598 | |||||||||||
Derivative assets: | |||||||||||||||||
Interest rate contracts | 14 | 3,716 | 41 | - | - | 3,771 | |||||||||||
Foreign exchange contracts | - | 52 | - | - | - | 52 | |||||||||||
Equity contracts | 151 | 106 | 49 | - | - | 306 | |||||||||||
Commodity contracts | - | - | 1 | - | - | 1 | |||||||||||
Credit contracts | - | - | 55 | - | - | 55 | |||||||||||
Other contracts | - | 1 | 33 | - | - | 34 | |||||||||||
Counterparty netting and cash collateral | - | - | - | -1,734 | -820 | -2,554 | |||||||||||
Total derivative assets | 165 | 3,875 | 179 | -1,734 | -820 | 1,665 | |||||||||||
Short-term investments | 332 | 5,981 | - | - | - | 6,313 | |||||||||||
Separate account assets | 67,708 | 3,351 | - | - | - | 71,059 | |||||||||||
Other assets | - | 418 | - | - | - | 418 | |||||||||||
Total | $ | 73,301 | $ | 255,967 | $ | 46,726 | $ | -1,734 | $ | -820 | $ | 373,440 | |||||
Liabilities: | |||||||||||||||||
Policyholder contract deposits | $ | - | $ | 72 | $ | 312 | $ | - | $ | - | $ | 384 | |||||
Derivative liabilities: | |||||||||||||||||
Interest rate contracts | - | 3,661 | 141 | - | - | 3,802 | |||||||||||
Foreign exchange contracts | - | 319 | - | - | - | 319 | |||||||||||
Equity contracts | - | 101 | - | - | - | 101 | |||||||||||
Commodity contracts | - | 5 | - | - | - | 5 | |||||||||||
Credit contracts | - | - | 1,335 | - | - | 1,335 | |||||||||||
Other contracts | - | 25 | 142 | - | - | 167 | |||||||||||
Counterparty netting and cash collateral | - | - | - | -1,734 | -1,484 | -3,218 | |||||||||||
Total derivative liabilities | - | 4,111 | 1,618 | -1,734 | -1,484 | 2,511 | |||||||||||
Long-term debt | - | 6,377 | 370 | - | - | 6,747 | |||||||||||
Other liabilities | 42 | 891 | - | - | - | 933 | |||||||||||
Total | $ | 42 | $ | 11,451 | $ | 2,300 | $ | -1,734 | $ | -1,484 | $ | 10,575 | |||||
(a) Represents netting of derivative exposures covered by qualifying master netting agreements. | |||||||||||||||||
(b) Effective April 1, 2014, we reclassified cross-currency swaps from Interest Rate contracts to Foreign exchange contracts. This change was applied prospectively. | |||||||||||||||||
Changes in Level 3 recurring fair value measurements | 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 | Issues and | Transfers | Transfers | End | Instruments Held | ||||||||||
(in millions) | of Year | in Income | Income (Loss) | Settlements, Net | In | Out | of Year | at End of Year | |||||||||
31-Dec-14 | |||||||||||||||||
Assets: | |||||||||||||||||
Bonds available for sale: | |||||||||||||||||
Obligations of states, municipalities | |||||||||||||||||
and political subdivisions | $ | 1,080 | $ | - | $ | 233 | $ | 914 | $ | 119 | $ | -187 | $ | 2,159 | $ | - | |
Non-U.S. governments | 16 | 1 | -1 | 9 | 8 | -3 | 30 | - | |||||||||
Corporate debt | 1,255 | 12 | 19 | -257 | 1,363 | -509 | 1,883 | - | |||||||||
RMBS | 14,941 | 1,012 | 53 | 796 | 120 | -117 | 16,805 | - | |||||||||
CMBS | 5,735 | 69 | 243 | 85 | 83 | -3,519 | 2,696 | - | |||||||||
CDO/ABS | 6,974 | 86 | -38 | 1,545 | 2,488 | -4,945 | 6,110 | - | |||||||||
Total bonds available for sale | 30,001 | 1,180 | 509 | 3,092 | 4,181 | -9,280 | 29,683 | - | |||||||||
Other bond securities: | |||||||||||||||||
RMBS | 937 | 40 | - | 97 | 51 | -20 | 1,105 | -13 | |||||||||
CMBS | 844 | -6 | - | -141 | 124 | -452 | 369 | -7 | |||||||||
CDO/ABS | 8,834 | 1,098 | - | -1,805 | 271 | -949 | 7,449 | 318 | |||||||||
Total other bond securities | 10,615 | 1,132 | - | -1,849 | 446 | -1,421 | 8,923 | 298 | |||||||||
Equity securities available for sale: | |||||||||||||||||
Common stock | 1 | - | - | -1 | 2 | -1 | 1 | - | |||||||||
Preferred stock | - | - | - | - | - | - | - | - | |||||||||
Mutual funds | - | - | - | - | 1 | -1 | - | - | |||||||||
Total equity securities available for sale | 1 | - | - | -1 | 3 | -2 | 1 | - | |||||||||
Mortgage and other loans receivable | - | - | - | 6 | - | - | 6 | - | |||||||||
Other invested assets | 5,930 | 150 | 398 | -83 | 167 | -912 | 5,650 | - | |||||||||
Total | $ | 46,547 | $ | 2,462 | $ | 907 | $ | 1,165 | $ | 4,797 | $ | -11,615 | $ | 44,263 | $ | 298 | |
Liabilities: | |||||||||||||||||
Policyholder contract deposits | $ | -312 | $ | -1,127 | $ | -54 | $ | -16 | $ | - | $ | - | $ | -1,509 | $ | -218 | |
Derivative liabilities, net: | |||||||||||||||||
Interest rate contracts | -100 | -10 | - | 39 | - | -3 | -74 | -10 | |||||||||
Foreign exchange contracts | - | 2 | - | -10 | - | - | -8 | 3 | |||||||||
Equity contracts | 49 | 21 | - | -18 | 48 | -53 | 47 | 13 | |||||||||
Commodity contracts | 1 | -1 | - | - | - | - | - | -1 | |||||||||
Credit contracts | -1,280 | 263 | - | 39 | - | - | -978 | 268 | |||||||||
Other contracts | -109 | 99 | 53 | -103 | 1 | - | -59 | 82 | |||||||||
Total derivative liabilities, net* | -1,439 | 374 | 53 | -53 | 49 | -56 | -1,072 | 355 | |||||||||
Long-term debt | -370 | 94 | - | 37 | -70 | 96 | -213 | 15 | |||||||||
Total | $ | -2,121 | $ | -659 | $ | -1 | $ | -32 | $ | -21 | $ | 40 | $ | -2,794 | $ | 152 | |
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 | Issues and | Transfers | Transfers | End | Instruments Held | ||||||||||
(in millions) | of Year | in Income | Income (Loss) | Settlements, Net | In | Out | of Year | at End of Year | |||||||||
31-Dec-13 | |||||||||||||||||
Assets: | |||||||||||||||||
Bonds available for sale: | |||||||||||||||||
Obligations of states, municipalities | |||||||||||||||||
and political subdivisions | $ | 1,024 | $ | 29 | $ | -175 | $ | 403 | $ | - | $ | -201 | $ | 1,080 | $ | - | |
Non-U.S. governments | 14 | - | -1 | 3 | 1 | -1 | 16 | - | |||||||||
Corporate debt | 1,487 | 8 | -19 | -176 | 450 | -495 | 1,255 | - | |||||||||
RMBS | 11,662 | 867 | 466 | 1,818 | 186 | -58 | 14,941 | - | |||||||||
CMBS | 5,124 | 24 | 100 | 375 | 161 | -49 | 5,735 | - | |||||||||
CDO/ABS | 4,841 | 161 | 9 | 1,946 | 901 | -884 | 6,974 | - | |||||||||
Total bonds available for sale | 24,152 | 1,089 | 380 | 4,369 | 1,699 | -1,688 | 30,001 | - | |||||||||
Other bond securities: | |||||||||||||||||
Corporate debt | - | - | - | - | - | - | - | - | |||||||||
RMBS | 396 | 66 | - | 208 | 267 | - | 937 | -2 | |||||||||
CMBS | 812 | 67 | - | -200 | 279 | -114 | 844 | 29 | |||||||||
CDO/ABS | 8,536 | 1,527 | - | -2,044 | 843 | -28 | 8,834 | 681 | |||||||||
Total other bond securities | 9,744 | 1,660 | - | -2,036 | 1,389 | -142 | 10,615 | 708 | |||||||||
Equity securities available for sale: | |||||||||||||||||
Common stock | 24 | 7 | -8 | -22 | - | - | 1 | - | |||||||||
Preferred stock | 44 | - | 3 | -47 | - | - | - | - | |||||||||
Total equity securities available for sale | 68 | 7 | -5 | -69 | - | - | 1 | - | |||||||||
Mortgage and other loans receivable | - | - | - | - | - | - | - | - | |||||||||
Other invested assets | 5,389 | 208 | 237 | 64 | 344 | -312 | 5,930 | - | |||||||||
Total | $ | 39,353 | $ | 2,964 | $ | 612 | $ | 2,328 | $ | 3,432 | $ | -2,142 | $ | 46,547 | $ | 708 | |
Liabilities: | |||||||||||||||||
Policyholder contract deposits | $ | -1,257 | $ | 744 | $ | -1 | $ | 202 | $ | - | $ | - | $ | -312 | $ | 104 | |
Derivative liabilities, net: | |||||||||||||||||
Interest rate contracts | 732 | 19 | - | -851 | - | - | -100 | 35 | |||||||||
Foreign exchange contracts | - | - | - | - | - | - | - | - | |||||||||
Equity contracts | 47 | 74 | - | -20 | 1 | -53 | 49 | 30 | |||||||||
Commodity contracts | 1 | - | - | - | - | - | 1 | -1 | |||||||||
Credit contracts | -1,991 | 567 | - | 144 | - | - | -1,280 | 711 | |||||||||
Other contracts | -162 | 42 | 15 | -2 | -2 | - | -109 | 7 | |||||||||
Total derivatives liabilities, net* | -1,373 | 702 | 15 | -729 | -1 | -53 | -1,439 | 782 | |||||||||
Long-term debt | -344 | -137 | - | 38 | -2 | 75 | -370 | -30 | |||||||||
Total | $ | -2,974 | $ | 1,309 | $ | 14 | $ | -489 | $ | -3 | $ | 22 | $ | -2,121 | $ | 856 | |
* 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 | |||||||||||||
31-Dec-14 | |||||||||||||||||
Bonds available for sale | $ | 1,236 | $ | -107 | $ | 51 | $ | 1,180 | |||||||||
Other bond securities | 95 | - | 1,037 | 1,132 | |||||||||||||
Equity securities available for sale | - | - | - | - | |||||||||||||
Other invested assets | 175 | -28 | 3 | 150 | |||||||||||||
Policyholder contract deposits | - | -1,127 | - | -1,127 | |||||||||||||
Derivative liabilities, net | 68 | 8 | 298 | 374 | |||||||||||||
Long-term debt | - | - | 94 | 94 | |||||||||||||
31-Dec-13 | |||||||||||||||||
Bonds available for sale | $ | 997 | $ | -17 | $ | 109 | $ | 1,089 | |||||||||
Other bond securities | 187 | 9 | 1,464 | 1,660 | |||||||||||||
Equity securities available for sale | - | 7 | - | 7 | |||||||||||||
Other invested assets | 210 | -42 | 40 | 208 | |||||||||||||
Policyholder contract deposits | - | 744 | - | 744 | |||||||||||||
Derivative liabilities, net | 39 | 43 | 620 | 702 | |||||||||||||
Long-term debt | - | - | -137 | -137 | |||||||||||||
Gross components of purchases, sales, issues and settlements, net | Purchases, | ||||||||||||||||
Sales, Issues and | |||||||||||||||||
(in millions) | Purchases | Sales | Settlements | Settlements, Net(a) | |||||||||||||
31-Dec-14 | |||||||||||||||||
Assets: | |||||||||||||||||
Bonds available for sale: | |||||||||||||||||
Obligations of states, municipalities and political subdivisions | $ | 1,041 | $ | -35 | $ | -92 | $ | 914 | |||||||||
Non-U.S. governments | 12 | - | -3 | 9 | |||||||||||||
Corporate debt | 148 | -8 | -397 | -257 | |||||||||||||
RMBS | 3,301 | -124 | -2,381 | 796 | |||||||||||||
CMBS | 368 | -224 | -59 | 85 | |||||||||||||
CDO/ABS | 2,760 | -70 | -1,145 | 1,545 | |||||||||||||
Total bonds available for sale | 7,630 | -461 | -4,077 | 3,092 | |||||||||||||
Other bond securities: | |||||||||||||||||
RMBS | 211 | -31 | -83 | 97 | |||||||||||||
CMBS | - | -16 | -125 | -141 | |||||||||||||
CDO/ABS | 55 | -21 | -1,839 | -1,805 | |||||||||||||
Total other bond securities | 266 | -68 | -2,047 | -1,849 | |||||||||||||
Equity securities available for sale | - | - | -1 | -1 | |||||||||||||
Mortgage and other loans receivable | 6 | - | - | 6 | |||||||||||||
Other invested assets | 776 | -25 | -834 | -83 | |||||||||||||
Total assets | $ | 8,678 | $ | -554 | $ | -6,959 | $ | 1,165 | |||||||||
Liabilities: | |||||||||||||||||
Policyholder contract deposits | $ | - | $ | -149 | $ | 133 | $ | -16 | |||||||||
Derivative liabilities, net | 2 | -3 | -52 | -53 | |||||||||||||
Long-term debt(b) | - | - | 37 | 37 | |||||||||||||
Total liabilities | $ | 2 | $ | -152 | $ | 118 | $ | -32 | |||||||||
31-Dec-13 | |||||||||||||||||
Assets: | |||||||||||||||||
Bonds available for sale: | |||||||||||||||||
Obligations of states, municipalities and political subdivisions | $ | 541 | $ | -138 | $ | - | $ | 403 | |||||||||
Non-U.S. governments | 9 | - | -6 | 3 | |||||||||||||
Corporate debt | 487 | -114 | -549 | -176 | |||||||||||||
RMBS | 4,424 | -266 | -2,340 | 1,818 | |||||||||||||
CMBS | 1,023 | -188 | -460 | 375 | |||||||||||||
CDO/ABS | 2,662 | -159 | -557 | 1,946 | |||||||||||||
Total bonds available for sale | 9,146 | -865 | -3,912 | 4,369 | |||||||||||||
Other bond securities: | |||||||||||||||||
Corporate debt | - | - | - | - | |||||||||||||
RMBS | 350 | -12 | -130 | 208 | |||||||||||||
CMBS | 24 | -71 | -153 | -200 | |||||||||||||
CDO/ABS | 353 | -72 | -2,325 | -2,044 | |||||||||||||
Total other bond securities | 727 | -155 | -2,608 | -2,036 | |||||||||||||
Equity securities available for sale | 58 | -12 | -115 | -69 | |||||||||||||
Other invested assets | 882 | -9 | -809 | 64 | |||||||||||||
Total assets | $ | 10,813 | $ | -1,041 | $ | -7,444 | $ | 2,328 | |||||||||
Liabilities: | |||||||||||||||||
Policyholder contract deposits | $ | - | $ | -26 | $ | 228 | $ | 202 | |||||||||
Derivative liabilities, net | 10 | -1 | -738 | -729 | |||||||||||||
Long-term debt(b) | - | - | 38 | 38 | |||||||||||||
Total liabilities | $ | 10 | $ | -27 | $ | -472 | $ | -489 | |||||||||
(a) There were no issuances during the years ended December 31, 2014 and 2013. | |||||||||||||||||
(b) Includes GIAs, notes, bonds, loans and mortgages payable. | |||||||||||||||||
Significant unobservable inputs used for recurring fair value measurements | Fair Value at | ||||||||||||||||
December 31, | Valuation | Range | |||||||||||||||
(in millions) | 2014 | Technique | Unobservable Input(a) | (Weighted Average )(a) | |||||||||||||
Assets: | |||||||||||||||||
Obligations of states, | $ | 1,178 | Discounted cash flow | Yield(b) | 3.9% - 4.62% (4.26%) | ||||||||||||
municipalities and | |||||||||||||||||
political subdivisions | |||||||||||||||||
Corporate debt | 1,145 | Discounted cash flow | Yield(b) | 3.46% - 8.75% (6.10%) | |||||||||||||
RMBS | 17,353 | Discounted cash flow | Constant prepayment rate(c) | 0.59% - 9.35% (4.97%) | |||||||||||||
Loss severity(c) | 46.04% - 79.56% (62.80%) | ||||||||||||||||
Constant default rate(c) | 3.67% - 9.96% (6.82%) | ||||||||||||||||
Yield(c) | 2.67% - 6.64% (4.65%) | ||||||||||||||||
Certain CDO/ABS | 5,282 | Discounted cash flow | Constant prepayment rate(c) | 6.40% - 12.80% (9.20%) | |||||||||||||
Loss severity(c) | 42.90% - 60.30% (51.90%) | ||||||||||||||||
Constant default rate(c) | 2.50% - 14.70% (7.80%) | ||||||||||||||||
Yield(c) | 4.70% - 9.70% (7.10%) | ||||||||||||||||
CMBS | 2,687 | Discounted cash flow | Yield(b) | 0.00% - 17.29% (6.06%) | |||||||||||||
CDO/ABS - Direct | Binomial Expansion | Recovery rate(b) | 7.00% - 36.00% (21.00%) | ||||||||||||||
Investment Book | 279 | Technique (BET) | Diversity score(b) | 5 - 27 (12) | |||||||||||||
Weighted average life(b) | 0.25 - 10.49 years (3.93 years) | ||||||||||||||||
Liabilities: | |||||||||||||||||
Policyholder contract | |||||||||||||||||
deposits | 1,509 | Discounted cash flow | Equity implied volatility(b) | 6.00% - 39.00% | |||||||||||||
Base lapse rate(b) | 1.00% - 40.00% | ||||||||||||||||
Dynamic lapse rate(b) | 0.20% - 60.00% | ||||||||||||||||
Mortality rate(b) | 0.10% - 35.00% | ||||||||||||||||
Utilization rate(b) | 0.50% - 30.00% | ||||||||||||||||
Total derivative | |||||||||||||||||
liabilities, net | 791 | BET | Recovery rate(b) | 5.00% - 23.00% (13.00%) | |||||||||||||
Diversity score(b) | 8 - 25 (13) | ||||||||||||||||
Weighted average life(b) | 2.67 - 10.49 years (4.65 years) | ||||||||||||||||
Fair Value at | |||||||||||||||||
December 31, | Valuation | Range | |||||||||||||||
(in millions) | 2013 | Technique | Unobservable Input(a) | (Weighted Average )(a) | |||||||||||||
Assets: | |||||||||||||||||
Obligations of states, | $ | 920 | Discounted cash flow | Yield(b) | 4.94% - 5.86% (5.40%) | ||||||||||||
municipalities and | |||||||||||||||||
political subdivisions | |||||||||||||||||
Corporate debt | 788 | Discounted cash flow | Yield(b) | 0.00% - 14.29% (6.64%) | |||||||||||||
RMBS | 14,419 | Discounted cash flow | Constant prepayment rate(c) | 0.00% - 10.35% (4.97%) | |||||||||||||
Loss severity(c) | 42.60% - 79.07% (60.84%) | ||||||||||||||||
Constant default rate(c) | 3.98% - 12.22% (8.10%) | ||||||||||||||||
Yield(c) | 2.54% - 7.40% (4.97%) | ||||||||||||||||
Certain CDO/ABS(d) | 5,414 | Discounted cash flow | Constant prepayment rate(c) | 5.20% - 10.80% (8.20%) | |||||||||||||
Loss severity(c) | 48.60% - 63.40% (56.40%) | ||||||||||||||||
Constant default rate(c) | 3.20% - 16.20% (9.00%) | ||||||||||||||||
Yield(c) | 5.20% - 11.50% (9.40%) | ||||||||||||||||
CMBS | 5,847 | Discounted cash flow | Yield(b) | 0.00% - 14.69% (5.58%) | |||||||||||||
CDO/ABS - Direct | Binomial Expansion | Recovery rate(b) | 6.00% - 63.00% (25.00%) | ||||||||||||||
Investment Book | 557 | Technique (BET) | Diversity score(b) | 5 - 35 (12) | |||||||||||||
Weighted average life(b) | 1.07 - 9.47 years (4.86 years) | ||||||||||||||||
Liabilities: | |||||||||||||||||
Policyholder contract | |||||||||||||||||
deposits | 312 | Discounted cash flow | Equity implied volatility(b) | 6.00% - 39.00% | |||||||||||||
Base lapse rate(b) | 1.00% - 40.00% | ||||||||||||||||
Dynamic lapse rate(b) | 0.20% - 60.00% | ||||||||||||||||
Mortality rate(b) | 0.50% - 40.00% | ||||||||||||||||
Utilization rate(b) | 0.50% - 25.00% | ||||||||||||||||
Total derivative | |||||||||||||||||
liabilities, net | 996 | BET | Recovery rate(b) | 5.00% - 34.00% (17.00%) | |||||||||||||
Diversity score(b) | 9 - 32 (13) | ||||||||||||||||
Weighted average life(b) | 4.50 - 9.47 years (5.63 years) | ||||||||||||||||
(a) The unobservable inputs and ranges for the 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) Information received from third-party valuation service providers. | |||||||||||||||||
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share | 31-Dec-14 | 31-Dec-13 | |||||||||||||||
Fair Value Using Net Asset Value Per Share (or its equivalent) | Fair Value Using Net Asset Value Per Share (or its equivalent) | ||||||||||||||||
Unfunded | Unfunded | ||||||||||||||||
(in millions) | Investment Category Includes | Commitments | 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 | $ | 2,275 | $ | 450 | $ | 2,544 | $ | 578 | ||||||||
Real Estate / Infrastructure | Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities | 384 | 227 | 346 | 86 | ||||||||||||
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 | 121 | 26 | 140 | 13 | ||||||||||||
Distressed | Securities of companies that are in default, under bankruptcy protection, or troubled | 164 | 43 | 183 | 34 | ||||||||||||
Other | Includes multi-strategy, mezzanine, and other strategies | 216 | 234 | 134 | 238 | ||||||||||||
Total private equity funds | 3,160 | 980 | 3,347 | 949 | |||||||||||||
Hedge funds: | |||||||||||||||||
Event-driven | Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations | 1,109 | - | 976 | 2 | ||||||||||||
Long-short | Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk | 2,428 | 1 | 1,759 | 11 | ||||||||||||
Macro | Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions | 498 | - | 612 | - | ||||||||||||
Distressed | Securities of companies that are in default, under bankruptcy protection or troubled | 731 | 5 | 594 | 15 | ||||||||||||
Emerging markets | Investments in the financial markets of developing countries | 308 | - | 287 | - | ||||||||||||
Other | Includes multi-strategy, relative value, and other strategies | 125 | - | 157 | - | ||||||||||||
Total hedge funds | 5,199 | 6 | 4,385 | 28 | |||||||||||||
Total | $ | 8,359 | $ | 986 | $ | 7,732 | $ | 977 | |||||||||
Gains or losses related to the eligible instruments for which AIG elected the fair value option | Years Ended December 31, | Gain (Loss) | |||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||||
Assets: | |||||||||||||||||
Mortgage and other loans receivable | $ | - | $ | 3 | $ | 47 | |||||||||||
Bond and equity securities | 2,099 | 1,667 | 2,339 | ||||||||||||||
Other securities – ML II interest | - | - | 246 | ||||||||||||||
Other securities – ML III interest | - | - | 2,888 | ||||||||||||||
Retained interest in AIA | - | - | 2,069 | ||||||||||||||
Alternative investments(a) | 313 | 360 | 36 | ||||||||||||||
Other, including Short-term investments | 10 | 11 | 20 | ||||||||||||||
Liabilities: | |||||||||||||||||
Long-term debt(b) | -269 | 327 | -681 | ||||||||||||||
Other liabilities | -13 | -15 | -33 | ||||||||||||||
Total gain | $ | 2,140 | $ | 2,353 | $ | 6,931 | |||||||||||
(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 | 31-Dec-14 | 31-Dec-13 | |||||||||||||||
Outstanding | Outstanding | ||||||||||||||||
(in millions) | Fair Value | Principal Amount | Difference | Fair Value | Principal Amount | Difference | |||||||||||
Assets: | |||||||||||||||||
Mortgage and other loans receivable | $ | 6 | $ | 4 | $ | 2 | $ | - | $ | - | $ | - | |||||
Liabilities: | |||||||||||||||||
Long-term debt* | $ | 5,466 | $ | 4,101 | $ | 1,365 | $ | 6,747 | $ | 5,231 | $ | 1,516 | |||||
* 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 | December 31, | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | 2014 | 2013 | 2012 | ||||||||||
31-Dec-14 | |||||||||||||||||
Other investments | $ | - | $ | - | $ | 790 | $ | 790 | $ | 134 | $ | 112 | $ | 151 | |||
Investments in life settlements | - | - | 537 | 537 | 201 | 971 | 309 | ||||||||||
Other assets | - | - | 1 | 1 | 7 | 31 | 11 | ||||||||||
Total | $ | - | $ | - | $ | 1,328 | $ | 1,328 | $ | 342 | $ | 1,114 | $ | 471 | |||
31-Dec-13 | |||||||||||||||||
Other investments | $ | - | $ | - | $ | 1,615 | $ | 1,615 | |||||||||
Investments in life settlements | - | - | 896 | 896 | |||||||||||||
Other assets | - | 11 | 48 | 59 | |||||||||||||
Total | $ | - | $ | 11 | $ | 2,559 | $ | 2,570 | |||||||||
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 | ||||||||||||
31-Dec-14 | |||||||||||||||||
Assets: | |||||||||||||||||
Mortgage and other loans receivable | $ | - | $ | 449 | $ | 26,157 | $ | 26,606 | $ | 24,984 | |||||||
Other invested assets | - | 593 | 2,882 | 3,475 | 4,352 | ||||||||||||
Short-term investments | - | 9,559 | - | 9,559 | 9,559 | ||||||||||||
Cash | 1,758 | - | - | 1,758 | 1,758 | ||||||||||||
Liabilities: | |||||||||||||||||
Policyholder contract deposits associated | |||||||||||||||||
with investment-type contracts | - | 244 | 119,268 | 119,512 | 106,395 | ||||||||||||
Other liabilities | - | 1,120 | - | 1,120 | 1,120 | ||||||||||||
Long-term debt | - | 24,749 | 2,932 | 27,681 | 25,751 | ||||||||||||
31-Dec-13 | |||||||||||||||||
Assets: | |||||||||||||||||
Mortgage and other loans receivable | $ | - | $ | 219 | $ | 21,418 | $ | 21,637 | $ | 20,765 | |||||||
Other invested assets | - | 529 | 2,705 | 3,234 | 4,194 | ||||||||||||
Short-term investments | - | 15,304 | - | 15,304 | 15,304 | ||||||||||||
Cash | 2,241 | - | - | 2,241 | 2,241 | ||||||||||||
Liabilities: | |||||||||||||||||
Policyholder contract deposits associated | |||||||||||||||||
with investment-type contracts | - | 199 | 114,361 | 114,560 | 105,093 | ||||||||||||
Other liabilities | - | 4,869 | 1 | 4,870 | 4,869 | ||||||||||||
Long-term debt | - | 36,239 | 2,394 | 38,633 | 34,946 |
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
INVESTMENTS | |||||||||||||||
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) | ||||||||||
31-Dec-14 | |||||||||||||||
Bonds available for sale: | |||||||||||||||
U.S. government and government sponsored entities | $ | 2,806 | $ | 204 | $ | -18 | $ | 2,992 | $ | - | |||||
Obligations of states, municipalities and political subdivisions | 25,979 | 1,729 | -49 | 27,659 | -13 | ||||||||||
Non-U.S. governments | 20,280 | 966 | -151 | 21,095 | - | ||||||||||
Corporate debt | 134,961 | 10,594 | -1,122 | 144,433 | 64 | ||||||||||
Mortgage-backed, asset-backed and collateralized: | |||||||||||||||
RMBS | 34,377 | 3,435 | -292 | 37,520 | 1,767 | ||||||||||
CMBS | 12,129 | 815 | -59 | 12,885 | 215 | ||||||||||
CDO/ABS | 12,775 | 628 | -128 | 13,275 | 47 | ||||||||||
Total mortgage-backed, asset-backed and collateralized | 59,281 | 4,878 | -479 | 63,680 | 2,029 | ||||||||||
Total bonds available for sale(b) | 243,307 | 18,371 | -1,819 | 259,859 | 2,080 | ||||||||||
Equity securities available for sale: | |||||||||||||||
Common stock | 1,185 | 2,461 | -17 | 3,629 | - | ||||||||||
Preferred stock | 21 | 4 | - | 25 | - | ||||||||||
Mutual funds | 724 | 54 | -37 | 741 | - | ||||||||||
Total equity securities available for sale | 1,930 | 2,519 | -54 | 4,395 | - | ||||||||||
Total | $ | 245,237 | $ | 20,890 | $ | -1,873 | $ | 264,254 | $ | 2,080 | |||||
31-Dec-13 | |||||||||||||||
Bonds available for sale: | |||||||||||||||
U.S. government and government sponsored entities | $ | 3,084 | $ | 150 | $ | -39 | $ | 3,195 | $ | - | |||||
Obligations of states, municipalities and political subdivisions | 28,704 | 1,122 | -446 | 29,380 | -15 | ||||||||||
Non-U.S. governments | 22,045 | 822 | -358 | 22,509 | - | ||||||||||
Corporate debt | 139,461 | 7,989 | -2,898 | 144,552 | 74 | ||||||||||
Mortgage-backed, asset-backed and collateralized: | |||||||||||||||
RMBS | 33,520 | 3,101 | -473 | 36,148 | 1,670 | ||||||||||
CMBS | 11,216 | 558 | -292 | 11,482 | 125 | ||||||||||
CDO/ABS | 10,501 | 649 | -142 | 11,008 | 62 | ||||||||||
Total mortgage-backed, asset-backed and collateralized | 55,237 | 4,308 | -907 | 58,638 | 1,857 | ||||||||||
Total bonds available for sale(b) | 248,531 | 14,391 | -4,648 | 258,274 | 1,916 | ||||||||||
Equity securities available for sale: | |||||||||||||||
Common stock | 1,280 | 1,953 | -14 | 3,219 | - | ||||||||||
Preferred stock | 24 | 4 | -1 | 27 | - | ||||||||||
Mutual funds | 422 | 12 | -24 | 410 | - | ||||||||||
Total equity securities available for sale | 1,726 | 1,969 | -39 | 3,656 | - | ||||||||||
Total | $ | 250,257 | $ | 16,360 | $ | -4,687 | $ | 261,930 | $ | 1,916 | |||||
(a) Represents the amount of other-than-temporary impairment losses recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date. | |||||||||||||||
(b) At December 31, 2014 and 2013, bonds available for sale held by us that were below investment grade or not rated totaled $35.1 billion and $32.6 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 | |||||||||
31-Dec-14 | |||||||||||||||
Bonds available for sale: | |||||||||||||||
U.S. government and government sponsored entities | $ | 526 | $ | 5 | $ | 281 | $ | 13 | $ | 807 | $ | 18 | |||
Obligations of states, municipalities and political | |||||||||||||||
subdivisions | 495 | 9 | 794 | 40 | 1,289 | 49 | |||||||||
Non-U.S. governments | 1,606 | 42 | 1,690 | 109 | 3,296 | 151 | |||||||||
Corporate debt | 12,132 | 450 | 11,570 | 672 | 23,702 | 1,122 | |||||||||
RMBS | 4,621 | 109 | 3,996 | 183 | 8,617 | 292 | |||||||||
CMBS | 220 | 1 | 2,087 | 58 | 2,307 | 59 | |||||||||
CDO/ABS | 3,857 | 50 | 1,860 | 78 | 5,717 | 128 | |||||||||
Total bonds available for sale | 23,457 | 666 | 22,278 | 1,153 | 45,735 | 1,819 | |||||||||
Equity securities available for sale: | |||||||||||||||
Common stock | 88 | 16 | 2 | 1 | 90 | 17 | |||||||||
Mutual funds | 280 | 37 | 64 | - | 344 | 37 | |||||||||
Total equity securities available for sale | 368 | 53 | 66 | 1 | 434 | 54 | |||||||||
Total | $ | 23,825 | $ | 719 | $ | 22,344 | $ | 1,154 | $ | 46,169 | $ | 1,873 | |||
31-Dec-13 | |||||||||||||||
Bonds available for sale: | |||||||||||||||
U.S. government and government sponsored entities | $ | 1,101 | $ | 34 | $ | 42 | $ | 5 | $ | 1,143 | $ | 39 | |||
Obligations of states, municipalities and political | |||||||||||||||
subdivisions | 6,134 | 379 | 376 | 67 | 6,510 | 446 | |||||||||
Non-U.S. governments | 4,102 | 217 | 710 | 141 | 4,812 | 358 | |||||||||
Corporate debt | 38,495 | 2,251 | 4,926 | 647 | 43,421 | 2,898 | |||||||||
RMBS | 8,543 | 349 | 1,217 | 124 | 9,760 | 473 | |||||||||
CMBS | 3,191 | 176 | 1,215 | 116 | 4,406 | 292 | |||||||||
CDO/ABS | 2,845 | 62 | 915 | 80 | 3,760 | 142 | |||||||||
Total bonds available for sale | 64,411 | 3,468 | 9,401 | 1,180 | 73,812 | 4,648 | |||||||||
Equity securities available for sale: | |||||||||||||||
Common stock | 96 | 14 | - | - | 96 | 14 | |||||||||
Preferred stock | 5 | 1 | - | - | 5 | 1 | |||||||||
Mutual funds | 369 | 24 | - | - | 369 | 24 | |||||||||
Total equity securities available for sale | 470 | 39 | - | - | 470 | 39 | |||||||||
Total | $ | 64,881 | $ | 3,507 | $ | 9,401 | $ | 1,180 | $ | 74,282 | $ | 4,687 | |||
The amortized cost and fair value of fixed maturity securities available for sale by contractual maturity | Total Fixed Maturity Securities | Fixed Maturity Securities Available | |||||||||||||
31-Dec-14 | Available for Sale | for Sale in a Loss Position | |||||||||||||
(in millions) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Due in one year or less | $ | 9,821 | $ | 9,975 | $ | 637 | $ | 620 | |||||||
Due after one year through five years | 48,352 | 50,873 | 6,669 | 6,529 | |||||||||||
Due after five years through ten years | 62,685 | 65,889 | 12,873 | 12,338 | |||||||||||
Due after ten years | 63,168 | 69,442 | 10,255 | 9,607 | |||||||||||
Mortgage-backed, asset-backed and collateralized | 59,281 | 63,680 | 17,120 | 16,641 | |||||||||||
Total | $ | 243,307 | $ | 259,859 | $ | 47,554 | $ | 45,735 | |||||||
The gross realized gains and gross realized losses from sales of AIG's available for sale securities | Years Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
Gross | Gross | Gross | Gross | Gross | Gross | ||||||||||
Realized | Realized | Realized | Realized | Realized | Realized | ||||||||||
(in millions) | Gains | Losses | Gains | Losses | Gains | Losses | |||||||||
Fixed maturity securities | $ | 703 | $ | 118 | $ | 2,634 | $ | 202 | $ | 2,778 | $ | 171 | |||
Equity securities | 135 | 24 | 130 | 19 | 515 | 31 | |||||||||
Total | $ | 838 | $ | 142 | $ | 2,764 | $ | 221 | $ | 3,293 | $ | 202 | |||
The fair value of AIG's other securities | 31-Dec-14 | 31-Dec-13 | |||||||||||||
Fair | Percent | Fair | Percent | ||||||||||||
(in millions) | Value | of Total | Value | of Total | |||||||||||
Fixed maturity securities: | |||||||||||||||
U.S. government and government sponsored entities | $ | 5,498 | 27 | % | $ | 5,723 | 24 | % | |||||||
Obligations of states, territories and political subdivisions | 122 | 1 | 121 | 1 | |||||||||||
Non-U.S. governments | 2 | - | 2 | - | |||||||||||
Corporate debt | 719 | 3 | 1,169 | 5 | |||||||||||
Mortgage-backed, asset-backed and collateralized: | |||||||||||||||
RMBS | 2,094 | 10 | 2,263 | 10 | |||||||||||
CMBS | 1,077 | 5 | 1,353 | 6 | |||||||||||
CDO/ABS and other collateralized(a) | 10,200 | 49 | 11,985 | 51 | |||||||||||
Total mortgage-backed, asset-backed and collateralized | 13,371 | 64 | 15,601 | 67 | |||||||||||
Other | - | - | 7 | - | |||||||||||
Total fixed maturity securities | 19,712 | 95 | 22,623 | 97 | |||||||||||
Equity securities | 1,049 | 5 | 834 | 3 | |||||||||||
Total | $ | 20,761 | 100 | % | $ | 23,457 | 100 | % | |||||||
(a) Includes $0.9 billion and $1.0 billion of U.S. Government agency backed ABS at December 31, 2014 and 2013, respectively. | |||||||||||||||
Components of other invested assets | December 31, | ||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Alternative investments(a) | $ | 19,656 | $ | 19,709 | |||||||||||
Mutual funds | - | 85 | |||||||||||||
Investment real estate(b) | 3,612 | 3,113 | |||||||||||||
Aircraft asset investments(c) | 651 | 763 | |||||||||||||
Investments in life settlements | 3,753 | 3,601 | |||||||||||||
Investment in AerCap | 4,972 | - | |||||||||||||
All other investments | 1,874 | 1,388 | |||||||||||||
Total | $ | 34,518 | $ | 28,659 | |||||||||||
(a) Includes hedge funds, private equity funds, affordable housing partnerships, and other investment partnerships. | |||||||||||||||
(b) Net of accumulated depreciation of $315 million and $513 million in 2014 and 2013, respectively. | |||||||||||||||
(c) Consists primarily of investments in aircraft equipment held in consolidated trusts. | |||||||||||||||
The carrying value and ownership percentage of AIA and equity method investments | 2014 | 2013 | |||||||||||||
Carrying | Ownership | Carrying | Ownership | ||||||||||||
(in millions, except percentages) | Value | Percentage | Value | Percentage | |||||||||||
Equity method investments | $ | 18,951 | Various | $ | 12,921 | Various | |||||||||
Schedule of information regarding investments in life settlements | 31-Dec-14 | ||||||||||||||
Number of | Carrying | Face Value | |||||||||||||
(dollars in millions) | Contracts | Value | (Death Benefits) | ||||||||||||
Remaining Life Expectancy of Insureds: | |||||||||||||||
0 – 1 year | 1 | $ | - | $ | - | ||||||||||
1 – 2 years | 12 | 9 | 19 | ||||||||||||
2 – 3 years | 18 | 11 | 19 | ||||||||||||
3 – 4 years | 77 | 42 | 93 | ||||||||||||
4 – 5 years | 152 | 205 | 436 | ||||||||||||
Thereafter | 4,687 | 3,486 | 15,370 | ||||||||||||
Total | 4,947 | $ | 3,753 | $ | 15,937 | ||||||||||
Components of net investment income | Years Ended December 31, | ||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||
Fixed maturity securities, including short-term investments | $ | 12,322 | $ | 12,044 | $ | 12,592 | |||||||||
Change in fair value of ML II | - | - | 246 | ||||||||||||
Change in fair value of ML III | - | - | 2,888 | ||||||||||||
Change in fair value of AIA securities including realized gain | - | - | 2,069 | ||||||||||||
Equity securities | 221 | 178 | 162 | ||||||||||||
Interest on mortgage and other loans | 1,272 | 1,144 | 1,083 | ||||||||||||
Alternative investments* | 2,624 | 2,803 | 1,769 | ||||||||||||
Real estate | 110 | 128 | 127 | ||||||||||||
Other investments | 47 | 61 | 11 | ||||||||||||
Total investment income | 16,596 | 16,358 | 20,947 | ||||||||||||
Investment expenses | 517 | 548 | 604 | ||||||||||||
Net investment income | $ | 16,079 | $ | 15,810 | $ | 20,343 | |||||||||
* Includes hedge funds, private equity funds, affordable housing partnerships, investments in life settlements and other investment partnerships. | |||||||||||||||
Components of net realized capital gains (losses) | Years Ended December 31, | ||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||
Sales of fixed maturity securities | $ | 585 | $ | 2,432 | $ | 2,607 | |||||||||
Sales of equity securities | 111 | 111 | 484 | ||||||||||||
Other-than-temporary impairments: | |||||||||||||||
Severity | -3 | -6 | -44 | ||||||||||||
Change in intent | -40 | -48 | -62 | ||||||||||||
Foreign currency declines | -19 | -1 | -8 | ||||||||||||
Issuer-specific credit events | -169 | -170 | -931 | ||||||||||||
Adverse projected cash flows | -16 | -7 | -5 | ||||||||||||
Provision for loan losses | -1 | -26 | 104 | ||||||||||||
Foreign exchange transactions | 598 | 151 | -233 | ||||||||||||
Derivative instruments | -177 | 287 | -529 | ||||||||||||
Impairments of investments in life settlements | -201 | -971 | -309 | ||||||||||||
Other | 71 | 187 | 13 | ||||||||||||
Net realized capital gains | $ | 739 | $ | 1,939 | $ | 1,087 | |||||||||
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments | Years Ended | ||||||||||||||
December 31, | |||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Increase (decrease) in unrealized appreciation (depreciation) of investments: | |||||||||||||||
Fixed maturities | $ | 6,809 | $ | -14,066 | |||||||||||
Equity securities | 535 | 360 | |||||||||||||
Other investments | 376 | 101 | |||||||||||||
Total increase (decrease) in unrealized appreciation (depreciation) of investments* | $ | 7,720 | $ | -13,605 | |||||||||||
* Excludes net unrealized gains attributable to businesses held for sale. | |||||||||||||||
Credit impairments recognized in earnings for available for sale fixed maturity securities | Years Ended December 31, | ||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||
Balance, beginning of year | $ | 3,872 | $ | 5,164 | $ | 6,504 | |||||||||
Increases due to: | |||||||||||||||
Credit impairments on new securities subject to impairment losses | 49 | 47 | 194 | ||||||||||||
Additional credit impairments on previously impaired securities | 85 | 78 | 483 | ||||||||||||
Reductions due to: | |||||||||||||||
Credit impaired securities fully disposed for which there was no | |||||||||||||||
prior intent or requirement to sell | -613 | -643 | -1,105 | ||||||||||||
Credit impaired securities for which there is a current intent or | |||||||||||||||
anticipated requirement to sell | - | - | -5 | ||||||||||||
Accretion on securities previously impaired due to credit* | -725 | -774 | -915 | ||||||||||||
Other | -9 | - | 8 | ||||||||||||
Balance, end of year | $ | 2,659 | $ | 3,872 | $ | 5,164 | |||||||||
* 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) | $ | 30,520 | |||||||||||||
Cash flows expected to be collected* | 24,561 | ||||||||||||||
Recorded investment in acquired securities | 16,311 | ||||||||||||||
* Represents undiscounted expected cash flows, including both principal and interest. | |||||||||||||||
Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date | December 31, | December 31, | |||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Outstanding principal balance | $ | 16,962 | $ | 14,741 | |||||||||||
Amortized cost | 12,216 | 10,110 | |||||||||||||
Fair value | 13,462 | 11,338 | |||||||||||||
Activity for accretable yield on Purchased Credit Impaired (PCI) Securities | Years Ended December 31, | ||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Balance, beginning of year | $ | 6,940 | $ | 4,766 | |||||||||||
Newly purchased PCI securities | 1,289 | 1,773 | |||||||||||||
Disposals | - | -60 | |||||||||||||
Accretion | -880 | -719 | |||||||||||||
Effect of changes in interest rate indices | -542 | 302 | |||||||||||||
Net reclassification from non-accretable difference, | |||||||||||||||
including effects of prepayments | 58 | 878 | |||||||||||||
Balance, end of year | $ | 6,865 | $ | 6,940 | |||||||||||
Schedule of fair value of securities pledged to counterparties under secured financing transactions | (in millions) | 31-Dec-14 | 31-Dec-13 | ||||||||||||
Securities available for sale | $ | - | $ | 3,837 | |||||||||||
Other securities | 2,122 | 2,766 | |||||||||||||
Schedule of fair value of securities pledged to the entity under reverse repurchase agreements | (in millions) | 31-Dec-14 | 31-Dec-13 | ||||||||||||
Securities collateral pledged to us | $ | 2,506 | $ | 8,878 | |||||||||||
Amount repledged by us | 131 | 71 | |||||||||||||
Investment [Line Items] | |||||||||||||||
Summarized financial information of AIG's equity method investees | Years Ended December 31, | ||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||
Operating results: | |||||||||||||||
Total revenues | $ | 29,579 | $ | 19,181 | $ | 9,438 | |||||||||
Total expenses | -7,828 | -5,515 | -5,183 | ||||||||||||
Net income | $ | 21,751 | $ | 13,666 | $ | 4,255 | |||||||||
At December 31, | |||||||||||||||
(in millions) | 2014 | 2013 | |||||||||||||
Balance sheet: | |||||||||||||||
Total assets | $ | 207,994 | $ | 150,586 | |||||||||||
Total liabilities | $ | -67,346 | $ | -25,134 |
LENDING_ACTIVITIES_Tables
LENDING ACTIVITIES (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
LENDING ACTIVITIES | ||||||||||||||||||||||
Composition of Mortgages and other loans receivable | December 31, | December 31, | ||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||
Commercial mortgages* | $ | 18,909 | $ | 16,195 | ||||||||||||||||||
Life insurance policy loans | 2,710 | 2,830 | ||||||||||||||||||||
Commercial loans, other loans and notes receivable | 3,642 | 2,052 | ||||||||||||||||||||
Total mortgage and other loans receivable | 25,261 | 21,077 | ||||||||||||||||||||
Allowance for losses | -271 | -312 | ||||||||||||||||||||
Mortgage and other loans receivable, net | $ | 24,990 | $ | 20,765 | ||||||||||||||||||
* Commercial mortgages primarily represent loans for apartments, offices, retail and industrial properties, with exposures in California and New York representing the largest geographic concentrations (14 percent and 18 percent, respectively, at December 31, 2014 and 18 percent and 17 percent, respectively, at December 31, 2013). | ||||||||||||||||||||||
Schedule of credit quality indicators for the commercial mortgage loans | Number | Percent | ||||||||||||||||||||
31-Dec-14 | of | Class | of | |||||||||||||||||||
(dollars in millions) | Loans | Apartments | Offices | Retail | Industrial | Hotel | Others | Total(c) | Total $ | |||||||||||||
Credit Quality Indicator: | ||||||||||||||||||||||
In good standing | 1,007 | $ | 3,384 | $ | 6,100 | $ | 3,807 | $ | 1,689 | $ | 1,660 | $ | 1,812 | $ | 18,452 | 98 | % | |||||
Restructured(a) | 7 | - | 343 | 7 | - | 17 | - | 367 | 2 | |||||||||||||
90 days or less delinquent | 6 | - | - | 10 | - | - | 5 | 15 | - | |||||||||||||
>90 days delinquent or in | ||||||||||||||||||||||
process of foreclosure | 4 | - | 75 | - | - | - | - | 75 | - | |||||||||||||
Total(b) | 1,024 | $ | 3,384 | $ | 6,518 | $ | 3,824 | $ | 1,689 | $ | 1,677 | $ | 1,817 | $ | 18,909 | 100 | % | |||||
Allowance for losses | $ | 3 | $ | 86 | $ | 28 | $ | 22 | $ | 6 | $ | 14 | $ | 159 | 1 | % | ||||||
31-Dec-13 | ||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||
Credit Quality Indicator: | ||||||||||||||||||||||
In good standing | 978 | $ | 2,786 | $ | 4,636 | $ | 3,364 | $ | 1,607 | $ | 1,431 | $ | 1,970 | $ | 15,794 | 98 | % | |||||
Restructured(a) | 9 | 53 | 210 | 6 | - | - | 85 | 354 | 2 | |||||||||||||
90 days or less delinquent | 2 | - | - | 5 | - | - | - | 5 | - | |||||||||||||
>90 days delinquent or in | ||||||||||||||||||||||
process of foreclosure | 6 | - | 42 | - | - | - | - | 42 | - | |||||||||||||
Total(b) | 995 | $ | 2,839 | $ | 4,888 | $ | 3,375 | $ | 1,607 | $ | 1,431 | $ | 2,055 | $ | 16,195 | 100 | % | |||||
Allowance for losses | $ | 10 | $ | 109 | $ | 9 | $ | 19 | $ | 3 | $ | 51 | $ | 201 | 1 | % | ||||||
(a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. See discussion of troubled debt restructurings below. | ||||||||||||||||||||||
(b) Does not reflect allowance for losses. | ||||||||||||||||||||||
(c) Over 99 percent of the commercial mortgages held at such respective dates were current as to payments of principal and interest. | ||||||||||||||||||||||
Schedule of changes in the allowance for losses on Mortgage and other loans receivable | 2014 | 2013 | 2012 | |||||||||||||||||||
Years Ended December 31, | Commercial | Other | Commercial | Other | Commercial | Other | ||||||||||||||||
(in millions) | Mortgages | Loans | Total | Mortgages | Loans | Total | Mortgages | Loans | Total | |||||||||||||
Allowance, beginning of year | $ | 201 | $ | 111 | $ | 312 | $ | 159 | $ | 246 | $ | 405 | $ | 305 | $ | 435 | $ | 740 | ||||
Loans charged off | -29 | -39 | -68 | -12 | -104 | -116 | -23 | -21 | -44 | |||||||||||||
Recoveries of loans previously | ||||||||||||||||||||||
charged off | 18 | 16 | 34 | 3 | 6 | 9 | 13 | 4 | 17 | |||||||||||||
Net charge-offs | -11 | -23 | -34 | -9 | -98 | -107 | -10 | -17 | -27 | |||||||||||||
Provision for loan losses | -31 | 23 | -8 | 52 | -32 | 20 | -136 | 33 | -103 | |||||||||||||
Other | - | 1 | 1 | -1 | -5 | -6 | - | - | - | |||||||||||||
Activity of discontinued operations | - | - | - | - | - | - | - | -205 | -205 | |||||||||||||
Allowance, end of year | $ | 159 * | $ | 112 | $ | 271 | $ | 201 * | $ | 111 | $ | 312 | $ | 159 * | $ | 246 | $ | 405 | ||||
* Of the total allowance at the end of the year, $55 million and $93 million relates to individually assessed credit losses on $192 million and $264 million of commercial mortgage loans as of December 31, 2014 and 2013, respectively. |
REINSURANCE_Tables
REINSURANCE (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||||
Supplemental information for gross loss and benefit reserves net of ceded reinsurance | At December 31, | 2014 | 2013 | ||||||||||||||||||
As | Net of | As | Net of | ||||||||||||||||||
(in millions) | Reported | Reinsurance | Reported | Reinsurance | |||||||||||||||||
Liability for unpaid losses and loss adjustment expenses(a) | $ | -77,260 | $ | -61,612 | $ | -81,547 | $ | -64,316 | |||||||||||||
Future policy benefits for life and accident and health insurance contracts | -42,749 | -41,767 | -40,653 | -39,619 | |||||||||||||||||
Reserve for unearned premiums | -21,324 | -18,278 | -21,953 | -18,532 | |||||||||||||||||
Reinsurance assets(b) | 19,676 | 21,686 | |||||||||||||||||||
(a) In 2014 and 2013, the Net of Reinsurance amount reflects the cession under the June 17, 2011 transaction with National Indemnity Company (NICO) of $1.5 billion and $1.6 billion, respectively. | |||||||||||||||||||||
(b) Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses. | |||||||||||||||||||||
Schedule of long-duration insurance in force ceded to other insurance companies | At December 31, | ||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012* | ||||||||||||||||||
Long-duration insurance in force ceded | $ | 180,178 | $ | 122,012 | $ | 129,159 | |||||||||||||||
* Excludes amounts related to held-for-sale entities. | |||||||||||||||||||||
Short-Duration Reinsurance | |||||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||||
Schedule of insurance premiums written and earned | Years Ended December 31, | ||||||||||||||||||||
Non-Life Insurance Companies | |||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||
Premiums written: | |||||||||||||||||||||
Direct | $ | 39,375 | $ | 39,833 | $ | 40,647 | |||||||||||||||
Assumed | 3,399 | 4,306 | 4,900 | ||||||||||||||||||
Ceded | -8,318 | -9,514 | -11,054 | ||||||||||||||||||
Net | $ | 34,456 | $ | 34,625 | $ | 34,493 | |||||||||||||||
Premiums earned: | |||||||||||||||||||||
Direct | $ | 38,707 | $ | 39,018 | $ | 41,028 | |||||||||||||||
Assumed | 3,258 | 3,516 | 3,133 | ||||||||||||||||||
Ceded | -8,140 | -8,585 | -9,375 | ||||||||||||||||||
Net | $ | 33,825 | $ | 33,949 | $ | 34,786 | |||||||||||||||
Long-Duration Reinsurance | |||||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||||
Schedule of insurance premiums written and earned | Years Ended | ||||||||||||||||||||
December 31, | Life Insurance Companies | Run-off insurance lines | Total | ||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||
Gross premiums | $ | 4,059 | $ | 4,155 | $ | 3,963 | $ | 11 | $ | 9 | $ | 11 | $ | 4,070 | $ | 4,164 | $ | 3,974 | |||
Ceded premiums | -661 | -620 | -581 | - | - | - | -661 | -620 | -581 | ||||||||||||
Net | $ | 3,398 | $ | 3,535 | $ | 3,382 | $ | 11 | $ | 9 | $ | 11 | $ | 3,409 | $ | 3,544 | $ | 3,393 |
DEFERRED_POLICY_ACQUISITION_CO1
DEFERRED POLICY ACQUISITION COSTS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
DEFERRED POLICY ACQUISITION COSTS | |||||||
Rollforward of DAC | Years Ended December 31, | ||||||
(in millions) | 2014 | 2013 | 2012 | ||||
Non-Life Insurance Companies: | |||||||
Balance, beginning of year | $ | 2,493 | $ | 2,342 | $ | 2,306 | |
Acquisition costs deferred | 4,805 | 4,803 | 4,834 | ||||
Amortization expense | -4,599 | -4,481 | -4,764 | ||||
Other | -148 | -171 | -34 | ||||
Balance, end of year | $ | 2,551 | $ | 2,493 | $ | 2,342 | |
Life Insurance Companies: | |||||||
Balance, beginning of year | $ | 6,920 | $ | 5,815 | $ | 6,607 | |
Acquisition costs deferred | 1,114 | 1,034 | 788 | ||||
Amortization expense | -727 | -674 | -945 | ||||
Change in net unrealized gains (losses) on securities | -360 | 784 | -621 | ||||
Decrease due to foreign exchange | -32 | -39 | -14 | ||||
Other | 343 | - | - | ||||
Balance, end of year | $ | 7,258 | $ | 6,920 | $ | 5,815 | |
Consolidation and eliminations | 18 | 23 | 25 | ||||
Total deferred policy acquisition costs* | $ | 9,827 | $ | 9,436 | $ | 8,182 | |
Supplemental Information: | |||||||
VOBA amortization expense included in Life Insurance Companies DAC amortization | 17 | 23 | 58 | ||||
VOBA, end of year included in Life Insurance Companies DAC balance | 510 | 373 | 368 | ||||
* Net of reductions in DAC of $1.4 billion, $1.1 billion, and $1.8 billion for Life Insurance Companies at December 31, 2014, 2013 and 2012, respectively, related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC). |
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
VARIABLE INTEREST ENTITIES | |||||||||||||
Schedule of Consolidated Variable Interest Entities | (in millions) | Real Estate and Investment Entities(d) | Securitization Vehicles | Structured Investment Vehicle | Affordable Housing Partnerships | Other | Total | ||||||
31-Dec-14 | |||||||||||||
Assets: | |||||||||||||
Bonds available for sale | $ | - | $ | 11,152 | $ | - | $ | - | $ | 35 | $ | 11,187 | |
Other bond securities | - | 7,251 | 615 | - | 40 | 7,906 | |||||||
Mortgage and other loans receivable | - | 2,398 | - | - | 162 | 2,560 | |||||||
Other invested assets | 577 | 651 | - | 1,684 | 29 | 2,941 | |||||||
Other(a) | 40 | 1,447 | 140 | 49 | 76 | 1,752 | |||||||
Total assets(b) | $ | 617 | $ | 22,899 | $ | 755 | $ | 1,733 | $ | 342 | $ | 26,346 | |
Liabilities: | |||||||||||||
Long-term debt | $ | 69 | $ | 1,370 | $ | 52 | $ | 199 | $ | 7 | $ | 1,697 | |
Other(c) | 32 | 276 | - | 101 | 37 | 446 | |||||||
Total liabilities | $ | 101 | $ | 1,646 | $ | 52 | $ | 300 | $ | 44 | $ | 2,143 | |
31-Dec-13 | |||||||||||||
Assets: | |||||||||||||
Bonds available for sale | $ | - | $ | 11,028 | $ | - | $ | - | $ | 70 | $ | 11,098 | |
Other bond securities | - | 7,449 | 748 | - | 113 | 8,310 | |||||||
Mortgage and other loans receivable | - | 1,508 | - | - | 189 | 1,697 | |||||||
Other invested assets | 849 | 763 | - | 1,986 | 30 | 3,628 | |||||||
Other(a) | 49 | 1,014 | 93 | 41 | 82 | 1,279 | |||||||
Total assets(b) | $ | 898 | $ | 21,762 | $ | 841 | $ | 2,027 | $ | 484 | $ | 26,012 | |
Liabilities: | |||||||||||||
Long-term debt | $ | 71 | $ | 626 | $ | 87 | $ | 188 | $ | 22 | $ | 994 | |
Other(c) | 31 | 225 | - | 83 | 216 | 555 | |||||||
Total liabilities | $ | 102 | $ | 851 | $ | 87 | $ | 271 | $ | 238 | $ | 1,549 | |
(a) Comprised primarily of Short-term investments, Premiums and other receivables and Other assets at both December 31, 2014 and 2013. | |||||||||||||
(b) The assets of each VIE can be used only to settle specific obligations of that VIE. | |||||||||||||
(c) Comprised primarily of Other liabilities and Derivative liabilities, at fair value, at both December 31, 2014 and 2013. | |||||||||||||
(d) At December 31, 2014 and 2013, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $56.4 million and $50.8 million, respectively. | |||||||||||||
Schedule of Unconsolidated Variable Interest Entities | Maximum Exposure to Loss | ||||||||||||
Total VIE | On-Balance | Off-Balance | |||||||||||
(in millions) | Assets | Sheet* | Sheet | Total | |||||||||
31-Dec-14 | |||||||||||||
Real estate and investment entities | $ | 19,949 | $ | 2,785 | $ | 454 | $ | 3,239 | |||||
Affordable housing partnerships | 7,911 | 425 | - | 425 | |||||||||
Other | 617 | 32 | - | 32 | |||||||||
Total | $ | 28,477 | $ | 3,242 | $ | 454 | $ | 3,696 | |||||
31-Dec-13 | |||||||||||||
Real estate and investment entities | $ | 17,572 | $ | 2,343 | $ | 289 | $ | 2,632 | |||||
Affordable housing partnerships | 8,559 | 477 | - | 477 | |||||||||
Other | 708 | 37 | - | 37 | |||||||||
Total | $ | 26,839 | $ | 2,857 | $ | 289 | $ | 3,146 | |||||
* At December 31, 2014 and 2013, $3.2 billion and $2.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. |
DERIVATIVES_AND_HEDGE_ACCOUNTI1
DERIVATIVES AND HEDGE ACCOUNTING (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
DERIVATIVES AND HEDGE ACCOUNTING | ||||||||||||||||||||
Notional amounts and fair values of derivative instruments | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||
Gross Derivative Assets | Gross Derivative Liabilities | Gross Derivative Assets | Gross Derivative Liabilities | |||||||||||||||||
Notional | Fair | Notional | Fair | Notional | Fair | Notional | Fair | |||||||||||||
(in millions) | Amount | Value(a) | Amount | Value(a) | Amount | Value(a) | Amount | Value(a) | ||||||||||||
Derivatives designated as | ||||||||||||||||||||
hedging instruments: | ||||||||||||||||||||
Interest rate contracts | $ | 155 | $ | - | $ | 25 | $ | 2 | $ | - | $ | - | $ | 112 | $ | 15 | ||||
Foreign exchange contracts | 611 | 25 | 1,794 | 239 | - | - | 1,857 | 190 | ||||||||||||
Equity contracts | 7 | 1 | 104 | 13 | - | - | - | - | ||||||||||||
Derivatives not designated | ||||||||||||||||||||
as hedging instruments: | ||||||||||||||||||||
Interest rate contracts | 65,070 | 3,743 | 45,251 | 3,183 | 50,897 | 3,771 | 59,585 | 3,849 | ||||||||||||
Foreign exchange contracts | 13,667 | 815 | 8,516 | 1,251 | 1,774 | 52 | 3,789 | 129 | ||||||||||||
Equity contracts(b) | 7,565 | 206 | 42,387 | 1,615 | 29,296 | 413 | 9,840 | 524 | ||||||||||||
Commodity contracts | 15 | - | 11 | 6 | 17 | 1 | 13 | 5 | ||||||||||||
Credit contracts | 5 | 4 | 5,288 | 982 | 70 | 55 | 15,459 | 1,335 | ||||||||||||
Other contracts(c) | 36,155 | 31 | 538 | 90 | 32,440 | 34 | 1,408 | 167 | ||||||||||||
Total derivatives not | ||||||||||||||||||||
designated as hedging | ||||||||||||||||||||
instruments | 122,477 | 4,799 | 101,991 | 7,127 | 114,494 | 4,326 | 90,094 | 6,009 | ||||||||||||
Total derivatives, gross | $ | 123,250 | $ | 4,825 | $ | 103,914 | $ | 7,381 | $ | 114,494 | $ | 4,326 | $ | 92,063 | $ | 6,214 | ||||
(a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. | ||||||||||||||||||||
(b) There were no derivative assets or notionals related to bifurcated embedded derivatives at December 31, 2014. Notional amount of derivative assets and fair value of derivative assets include $23.2 billion and $107 million at December 31, 2013 related to bifurcated embedded derivatives. Notional amount of derivative liabilities and fair values of derivative liabilities include $39.3 billion and $1.5 billion, respectively, at December 31, 2014 and $6.7 billion and $424 million, respectively at December 31, 2013 related to bifurcated embedded derivatives. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. | ||||||||||||||||||||
(c) Consists primarily of contracts with multiple underlying exposures. | ||||||||||||||||||||
Fair values of derivative assets and liabilities in the Consolidated Balance Sheets | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | |||||||||||||||||
Notional | Fair | Notional | Fair | Notional | Fair | Notional | Fair | |||||||||||||
(in millions) | Amount | Value | Amount | Value | Amount | Value | Amount | Value | ||||||||||||
Global Capital Markets derivatives: | ||||||||||||||||||||
AIG Financial Products | $ | 23,153 | $ | 2,445 | $ | 27,719 | $ | 3,019 | $ | 41,942 | $ | 2,567 | $ | 52,679 | $ | 3,506 | ||||
AIG Markets | 55,005 | 1,935 | 29,251 | 2,136 | 12,531 | 964 | 23,716 | 1,506 | ||||||||||||
Total Global Capital Markets derivatives | 78,158 | 4,380 | 56,970 | 5,155 | 54,473 | 3,531 | 76,395 | 5,012 | ||||||||||||
Non-Global Capital Markets derivatives(a) | 45,092 | 445 | 46,944 | 2,226 | 60,021 | 795 | 15,668 | 1,202 | ||||||||||||
Total derivatives, gross | $ | 123,250 | 4,825 | $ | 103,914 | 7,381 | $ | 114,494 | 4,326 | $ | 92,063 | 6,214 | ||||||||
Counterparty netting(b) | -2,102 | -2,102 | -1,734 | -1,734 | ||||||||||||||||
Cash collateral(c) | -1,119 | -1,429 | -820 | -1,484 | ||||||||||||||||
Total derivatives, net | 1,604 | 3,850 | 1,772 | 2,996 | ||||||||||||||||
Less: Bifurcated embedded derivatives | - | 1,577 | 107 | 485 | ||||||||||||||||
Total derivatives on consolidated | ||||||||||||||||||||
balance sheet | $ | 1,604 | $ | 2,273 | $ | 1,665 | $ | 2,511 | ||||||||||||
(a) Represents derivatives used to hedge the foreign currency and interest rate risk associated with insurance as well as embedded derivatives included in insurance contracts. Assets and liabilities include bifurcated embedded derivatives, which are recorded in Policyholder contract deposits. | ||||||||||||||||||||
(b) Represents netting of derivative exposures covered by a qualifying master netting agreement. | ||||||||||||||||||||
(c) Represents cash collateral posted and received that is eligible for netting. | ||||||||||||||||||||
Gain (loss) recognized in earnings on AIG's derivative instruments in fair value hedging relationships in the Consolidated Statements of Income | Gains/(Losses) Recognized in Earnings for: | Including Gains/(Losses) Attributable to: | ||||||||||||||||||
Hedging | Hedged | Hedge | Excluded | |||||||||||||||||
(in millions) | Derivatives(a) | Items | Ineffectiveness | Components | Other(b) | |||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||
Realized capital gains/(losses) | $ | 1 | $ | -2 | $ | - | $ | - | $ | -1 | ||||||||||
Interest credited to policyholder | ||||||||||||||||||||
account balances | - | -1 | - | - | -1 | |||||||||||||||
Other income | - | 43 | - | - | 43 | |||||||||||||||
Gain/(Loss) on extinguishment of debt | - | 164 | - | - | 164 | |||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||
Realized capital gains/(losses) | -129 | 147 | - | 8 | 10 | |||||||||||||||
Interest credited to policyholder | ||||||||||||||||||||
account balances | - | -3 | - | - | -3 | |||||||||||||||
Other income | - | 23 | - | - | 23 | |||||||||||||||
Gain/(Loss) on extinguishment of debt | - | 2 | - | - | 2 | |||||||||||||||
Equity contracts: | ||||||||||||||||||||
Realized capital gains/(losses) | -23 | 22 | - | -1 | - | |||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||
Realized capital gains/(losses) | $ | -5 | $ | 5 | $ | - | $ | - | $ | - | ||||||||||
Interest credited to policyholder | ||||||||||||||||||||
account balances | - | -2 | - | - | -2 | |||||||||||||||
Other income | - | 99 | - | - | 99 | |||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||
Realized capital gains/(losses) | -187 | 204 | - | 17 | - | |||||||||||||||
Policyholder benefits | - | - | - | - | - | |||||||||||||||
Other income | - | - | - | - | - | |||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||
Other income | $ | - | $ | 124 | $ | - | $ | - | $ | 124 | ||||||||||
Foreign exchange contracts: | ||||||||||||||||||||
Realized capital gains/(losses) | -2 | 2 | - | - | - | |||||||||||||||
(a) The amounts presented do not include the periodic net coupon settlements of the derivative contract or the coupon income (expense) related to the hedged item. | ||||||||||||||||||||
(b) Represents accretion/amortization of opening fair value of the hedged item at inception of hedge relationship, amortization of basis adjustment on hedged item following the discontinuation of hedge accounting, and the release of debt basis adjustment following the repurchase of issued debt that was part of previously-discontinued fair value hedge relationship. | ||||||||||||||||||||
Effect of AIG's derivative instruments in cash flow hedging relationships in the Consolidated Statement of Income | Years Ended December 31, | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Interest rate contracts(a): | ||||||||||||||||||||
Loss recognized in Other comprehensive income on derivatives | $ | - | $ | - | $ | -2 | ||||||||||||||
Loss reclassified from Accumulated other comprehensive income into earnings(b) | - | - | -35 | |||||||||||||||||
(a) Hedge accounting was discontinued in December 2012 in connection with ILFC being classified as held-for-sale. Gains and losses recognized in earnings are recorded in Income from continuing operations. Previously the effective portion of the change in fair value of a derivative qualifying as a cash flow hedge was recorded in Accumulated other comprehensive income until earnings were affected by the variability of cash flows in the hedged item. Gains and losses reclassified from Accumulated other comprehensive income were previously recorded in Other income. Gains or losses recognized in earnings on derivatives for the ineffective portion were previously recorded in Net realized capital gains (losses). | ||||||||||||||||||||
(b) Includes $19 million for the year ended December 2012, representing the reclassification from Accumulated other comprehensive income into earnings following the discontinuation of cash flow hedges of ILFC debt. | ||||||||||||||||||||
Effect of AIG's derivative instruments not designated as hedging instruments in the Consolidated Statements of Income | Gains (Losses) | |||||||||||||||||||
Years Ended December 31, | Recognized in Earnings | |||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||
By Derivative Type: | ||||||||||||||||||||
Interest rate contracts(a) | $ | 847 | $ | -331 | $ | -241 | ||||||||||||||
Foreign exchange contracts | 309 | 41 | 96 | |||||||||||||||||
Equity contracts(b) | -1,111 | 664 | -644 | |||||||||||||||||
Commodity contracts | -1 | -4 | -1 | |||||||||||||||||
Credit contracts | 263 | 567 | 641 | |||||||||||||||||
Other contracts | 192 | 85 | 6 | |||||||||||||||||
Total | $ | 499 | $ | 1,022 | $ | -143 | ||||||||||||||
By Classification: | ||||||||||||||||||||
Net investment income | 102 | 28 | 5 | |||||||||||||||||
Net realized capital gains (losses) | -219 | 257 | -516 | |||||||||||||||||
Other income | 599 | 750 | 368 | |||||||||||||||||
Policyholder benefits and losses incurred | 17 | -13 | - | |||||||||||||||||
Total | $ | 499 | $ | 1,022 | $ | -143 | ||||||||||||||
(a) Includes cross currency swaps. | ||||||||||||||||||||
(b) Includes embedded derivative gains (losses) of $(837) million, $1.2 billion and $(170) million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
Net notional amount, fair value of derivative (asset) liability and unrealized market valuation gain (loss) | Fair Value of | Unrealized Market Valuation | ||||||||||||||||||
Net Notional Amount at | Derivative Liability at | Gain for the Years Ended | ||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
Arbitrage: | ||||||||||||||||||||
Multi-sector CDOs(a) | $ | 2,619 | $ | 3,257 | $ | 947 | $ | 1,249 | $ | 235 | $ | 518 | ||||||||
Corporate debt/CLOs(b)(c) | 2,480 | 11,832 | 7 | 28 | 21 | 32 | ||||||||||||||
Total | $ | 5,099 | $ | 15,089 | $ | 954 | $ | 1,277 | $ | 256 | $ | 550 | ||||||||
(a) During 2014, we paid $67 million to counterparties with respect to multi-sector CDOs, which was previously included in the fair value of the derivative liability as an unrealized market valuation loss. Collateral postings with regards to multi-sector CDOs were $852 million and $1.1 billion at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||
(b) Corporate debt/Collateralized Loan Obligations (CLOs) include $555 million and $1.0 billion in net notional amount of credit default swaps written on the super senior tranches of CLOs at December 31, 2014 and 2013, respectively. Collateral postings with regards to corporate debt/CLOs were $147 million and $353 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||
(c) On July 17, 2014, AIGFP terminated Corporate Debt Super Senior CDSs with a notional amount of $8.8 billion. |
GOODWILL_Tables
GOODWILL (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill Disclosure | |||||||||
Schedule of changes in goodwill by reportable segment | |||||||||
(in millions) | Commercial | Consumer | Other | Total | |||||
Balance at January 1, 2012: | |||||||||
Goodwill - gross | $ | 2,325 | $ | 2,502 | $ | 23 | $ | 4,850 | |
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | 1,059 | 291 | 23 | 1,373 | |||||
Increase (decrease) due to: | |||||||||
Acquisition | 119 | - | - | 119 | |||||
Other | - | - | -23 | -23 | |||||
Balance at December 31, 2012: | |||||||||
Goodwill - gross | 2,444 | 2,502 | - | 4,946 | |||||
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | 1,178 | 291 | - | 1,469 | |||||
Increase (decrease) due to: | |||||||||
Other | 6 | - | - | 6 | |||||
Balance at December 31, 2013: | |||||||||
Goodwill - gross | 2,450 | 2,502 | - | 4,952 | |||||
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | 1,184 | 291 | - | 1,475 | |||||
Increase (decrease) due to: | |||||||||
Acquisition | - | 28 | - | 28 | |||||
Other | -49 | - | - | -49 | |||||
Balance at December 31, 2014: | |||||||||
Goodwill - gross | 2,401 | 2,530 | - | 4,931 | |||||
Accumulated impairments | -1,266 | -2,211 | - | -3,477 | |||||
Net goodwill | $ | 1,135 | $ | 319 | $ | - | $ | 1,454 |
INSURANCE_LIABILITIES_Tables
INSURANCE LIABILITIES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | |||||||
Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense | Years Ended December 31, | ||||||
(in millions) | 2014 | 2013 | 2012 | ||||
Liability for unpaid losses and loss adjustment expenses, beginning of year | $ | 81,547 | $ | 87,991 | $ | 91,145 | |
Reinsurance recoverable | -17,231 | -19,209 | -20,320 | ||||
Net liability for unpaid losses and loss adjustment expenses, beginning of year | 64,316 | 68,782 | 70,825 | ||||
Foreign exchange effect(a) | -1,061 | -617 | -90 | ||||
Dispositions | - | -79 | -11 | ||||
Changes in net loss reserves due to retroactive asbestos reinsurance transaction | 141 | 22 | 90 | ||||
Total | 63,396 | 68,108 | 70,814 | ||||
Losses and loss adjustment expenses incurred: | |||||||
Current year | 21,279 | 22,171 | 25,385 | ||||
Prior years, excluding discount(b) | 703 | 557 | 421 | ||||
Prior years, discount charge (benefit) | 478 | -309 | -63 | ||||
Total | 22,460 | 22,419 | 25,743 | ||||
Losses and loss adjustment expenses paid(c): | |||||||
Current year | 6,358 | 7,431 | 8,450 | ||||
Prior years | 17,886 | 18,780 | 19,325 | ||||
Total | 24,244 | 26,211 | 27,775 | ||||
Balance, end of year: | |||||||
Net liability for unpaid losses and loss adjustment expenses | 61,612 | 64,316 | 68,782 | ||||
Reinsurance recoverable | 15,648 | 17,231 | 19,209 | ||||
Total | $ | 77,260 | $ | 81,547 | $ | 87,991 | |
(a) For the 2012 amounts, $847 million was reclassified from "Foreign exchange effect" to "Losses and loss adjustment expenses paid (current year)". The impact of this reclassification was a decrease of $847 million for foreign exchange and loss expenses paid (current year), with no income statement or balance sheet impact. | |||||||
(b) In 2014, included $545 million, $381 million, $(195) million, $135 million and $109 million related to primary casualty, environmental and asbestos, natural catastrophes, financial lines and healthcare, respectively. In 2013, included $(144) million, $269 million, $498 million and $(54) million related to excess casualty, environmental and pollution, primary casualty and healthcare, respectively. In 2012, includes $157 million, $200 million, $531 million and $68 million related to excess casualty, environmental and pollution, primary casualty and healthcare, respectively. | |||||||
(c) Includes amounts related to dispositions through the date of disposition. | |||||||
Schedule of Policyholder contract deposits by product type | At December 31, | ||||||
(in millions) | 2014 | 2013 | |||||
Policyholder contract deposits: | |||||||
Fixed Annuities | $ | 53,370 | $ | 54,515 | |||
Group Retirement | 37,693 | 37,695 | |||||
Life | 13,717 | 13,644 | |||||
Retirement Income Solutions | 10,040 | 6,729 | |||||
Institutional Markets | 9,793 | 9,433 | |||||
Total Policyholder contract deposits | $ | 124,613 | $ | 122,016 |
VARIABLE_LIFE_AND_ANNUITY_CONT1
VARIABLE LIFE AND ANNUITY CONTRACTS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
VARIABLE LIFE AND ANNUITY CONTRACTS | ||||||||||
Schedule of Account balances of variable annuity contracts with guarantees were invested in separate account investment | At December 31, | |||||||||
(in millions) | 2014 | 2013 | ||||||||
Equity funds | $ | 40,811 | $ | 40,497 | ||||||
Bond funds | 7,566 | 7,458 | ||||||||
Balanced funds | 22,354 | 16,384 | ||||||||
Money market funds | 797 | 867 | ||||||||
Total | $ | 71,528 | $ | 65,206 | ||||||
Schedule of details concerning entity's GMDB exposures, by benefit type | At December 31, | 2014 | 2013 | |||||||
Net Deposits | Net Deposits | |||||||||
Plus a Minimum | Highest Contract | Plus a Minimum | Highest Contract | |||||||
(dollars in billions) | Return | Value Attained | Return | Value Attained | ||||||
Account value | $ | 85 | $ | 17 | $ | 78 | $ | 15 | ||
Net amount at risk | 1 | 1 | 1 | 1 | ||||||
Average attained age of contract holders by product | 62 | 68 | 66 | 70 | ||||||
Range of guaranteed minimum return rates | 0%-5% | 0-5% | ||||||||
Schedule of changes in GMDB and GMIB liabilities for guarantees on variable contracts reflected in the general account | Years Ended December 31, | |||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||
Balance, beginning of year | $ | 394 | $ | 413 | $ | 445 | ||||
Reserve increase | 93 | 32 | 43 | |||||||
Benefits paid | -67 | -51 | -75 | |||||||
Balance, end of year | $ | 420 | $ | 394 | $ | 413 |
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
DEBT | ||||||||||||||||
Schedule of total debt outstanding | Balance at | Balance at | ||||||||||||||
At December 31, 2014 | Range of | Maturity | December 31, | December 31, | ||||||||||||
(in millions) | Interest Rate(s) | Date(s) | 2014 | 2013 | ||||||||||||
Debt issued or guaranteed by AIG: | ||||||||||||||||
AIG general borrowings: | ||||||||||||||||
Notes and bonds payable | 2.30% - 8.13% | 2015 - 2097 | $ | 15,570 | $ | 14,062 | ||||||||||
Subordinated debt | 2.38% | 2015 | 250 | 250 | ||||||||||||
Junior subordinated debt | 4.88% - 8.63% | 2037 - 2047 | 2,466 | 5,533 | ||||||||||||
Loans and mortgages payable | 9.00% | 2015 | - | 1 | ||||||||||||
AIGLH notes and bonds payable | 6.63% - 7.50% | 2025 - 2029 | 284 | 299 | ||||||||||||
AIGLH junior subordinated debt | 7.57% - 8.50% | 2030 - 2046 | 536 | 1,054 | ||||||||||||
Total AIG general borrowings | 19,106 | 21,199 | ||||||||||||||
AIG/DIB borrowings supported by assets:(a) | ||||||||||||||||
MIP notes payable | 2.28% - 8.59% | 2015 - 2018 | 2,870 | 7,963 | ||||||||||||
Series AIGFP matched notes and bonds payable | 0.10% - 0.24% | 2017 - 2047 | 34 | 3,219 | ||||||||||||
GIAs, at fair value | 0.04% - 8.50% | 2015 - 2047 | 4,648 | 5,530 | ||||||||||||
Notes and bonds payable, at fair value | 0.15% - 10.4% | 2015 - 2049 | 818 | 1,217 | ||||||||||||
Total AIG/DIB borrowings supported by assets | 8,370 | 17,929 | ||||||||||||||
Total debt issued or guaranteed by AIG | 27,476 | 39,128 | ||||||||||||||
Debt not guaranteed by AIG: | ||||||||||||||||
Other subsidiaries notes, bonds, loans and | ||||||||||||||||
mortgages payable | 0.06% - 5.60% | 2015 - 2047 | 58 | 656 | ||||||||||||
Debt of consolidated investments(b) | 0.03% - 9.06% | 2015 - 2061 | 3,683 | 1,909 | ||||||||||||
Total debt not guaranteed by AIG | 3,741 | 2,565 | ||||||||||||||
Total long term debt (c) | $ | 31,217 | $ | 41,693 | ||||||||||||
(a) AIG Parent guarantees all DIB debt, except for MIP notes payable and Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. | ||||||||||||||||
(b) At December 31, 2014, includes debt of consolidated investments held through AIG Global Real Estate Investment Corp., AIG Credit Corp., AIGLH and AIG Property Casualty Inc. of $2.0 billion, $54 million, $1.5 billion and $122 million, respectively. At December 31, 2013, includes debt of consolidated investments held through AIG Global Real Estate Investment Corp., AIG Credit Corp., AIGLH and AIG Property Casualty Inc. of $1.5 billion, $111 million, $696 million and $58 million, respectively. | ||||||||||||||||
(c) At December 31, 2013, excludes $21.4 billion related to ILFC as it is classified as a held-for-sale business. | ||||||||||||||||
Maturities of long-term debt, excluding borrowings of debt of consolidated investments | 31-Dec-14 | Year Ending | ||||||||||||||
(in millions) | Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||
Debt issued or guaranteed by AIG: | ||||||||||||||||
AIG general borrowings: | ||||||||||||||||
Notes and bonds payable | $ | 15,570 | $ | 847 | $ | 1,554 | $ | 510 | $ | 2,407 | $ | 998 | $ | 9,254 | ||
Subordinated debt | 250 | 250 | - | - | - | - | - | |||||||||
Junior subordinated debt | 2,466 | - | - | - | - | - | 2,466 | |||||||||
AIGLH notes and bonds payable | 284 | - | - | - | - | - | 284 | |||||||||
AIGLH junior subordinated debt | 536 | - | - | - | - | - | 536 | |||||||||
Total AIG general borrowings | 19,106 | 1,097 | 1,554 | 510 | 2,407 | 998 | 12,540 | |||||||||
AIG/DIB borrowings supported by assets: | ||||||||||||||||
MIP notes payable | 2,870 | 132 | 366 | 2,019 | 353 | - | - | |||||||||
Series AIGFP matched notes and | ||||||||||||||||
bonds payable | 34 | - | - | 10 | - | - | 24 | |||||||||
GIAs, at fair value | 4,648 | 619 | 165 | 226 | 631 | 180 | 2,827 | |||||||||
Notes and bonds payable, at fair value | 818 | 132 | 168 | 131 | 153 | - | 234 | |||||||||
Total AIG/DIB borrowings supported by assets | 8,370 | 883 | 699 | 2,386 | 1,137 | 180 | 3,085 | |||||||||
Total debt issued or guaranteed by AIG | 27,476 | 1,980 | 2,253 | 2,896 | 3,544 | 1,178 | 15,625 | |||||||||
Other subsidiaries notes, bonds, loans | ||||||||||||||||
and mortgages payable | 58 | 38 | 1 | 1 | 1 | 1 | 16 | |||||||||
Total | $ | 27,534 | $ | 2,018 | $ | 2,254 | $ | 2,897 | $ | 3,545 | $ | 1,179 | $ | 15,641 | ||
Schedule of detail for uncollateralized and collateralized notes, bonds, loans and mortgages payable | Uncollateralized | Collateralized | ||||||||||||||
At December 31, 2014 | Notes/Bonds/Loans | Loans and | ||||||||||||||
(in millions) | Payable | Mortgages Payable | Total | |||||||||||||
Other subsidiaries notes, bonds, loans and mortgages payable* | 14 | 44 | 58 | |||||||||||||
Total | $ | 14 | $ | 44 | $ | 58 | ||||||||||
* AIG does not guarantee any of these borrowings. | ||||||||||||||||
Summary of the Four-Year Facility | At December 31, 2014 | Available | Effective | |||||||||||||
(in millions) | Size | Amount | Expiration | Date | ||||||||||||
Five-Year Syndicated Credit Facility | $ | 4,000 | $ | 4,000 | Jun-19 | 6/19/14 |
CONTINGENCIES_COMMITMENTS_AND_1
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |||
Future minimum lease payments under operating leases | (in millions) | ||
2015 | $ | 349 | |
2016 | 265 | ||
2017 | 191 | ||
2018 | 136 | ||
2019 | 98 | ||
Remaining years after 2019 | 265 | ||
Total | $ | 1,304 |
EQUITY_Tables
EQUITY (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
EQUITY | |||||||||||||
Rollforward of common stock outstanding | Common | Treasury | Common Stock | ||||||||||
Stock Issued | Stock | Outstanding | |||||||||||
Year Ended December 31, 2012 | |||||||||||||
Shares, beginning of year | 1,906,568,099 | -9,746,617 | 1,896,821,482 | ||||||||||
Issuances | 43,581 | 685,727 | 729,308 | ||||||||||
Shares purchased | - | -421,228,855 | -421,228,855 | ||||||||||
Shares, end of year | 1,906,611,680 | -430,289,745 | 1,476,321,935 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||
Shares, beginning of year | 1,906,611,680 | -430,289,745 | 1,476,321,935 | ||||||||||
Shares issued | 34,009 | 24,778 | 58,787 | ||||||||||
Shares repurchased | - | -12,317,399 | -12,317,399 | ||||||||||
Shares, end of year | 1,906,645,689 | -442,582,366 | 1,464,063,323 | ||||||||||
Year Ended December 31, 2014 | |||||||||||||
Shares, beginning of year | 1,906,645,689 | -442,582,366 | 1,464,063,323 | ||||||||||
Shares issued | 25,803 | 15,748 | 41,551 | ||||||||||
Shares repurchased | - | -88,177,903 | -88,177,903 | ||||||||||
Shares, end of year | 1,906,671,492 | -530,744,521 | 1,375,926,971 | ||||||||||
Summarizes information of public offerings of common stock by Department of the Treasury, as selling shareholder | U.S. Treasury | AIG | |||||||||||
(dollars in millions, except share-price data) | Price | Shares Sold | Amount | Shares Purchased | Amount | ||||||||
2012 Offerings: | |||||||||||||
March Offering | $ | 29 | 206,896,552 | $ | 6,000 | 103,448,276 | $ | 3,000 | |||||
May Offering | 30.5 | 188,524,589 | 5,750 | 65,573,770 | 2,000 | ||||||||
August Offering | 30.5 | 188,524,590 | 5,750 | 98,360,656 | 3,000 | ||||||||
September Offering | 32.5 | 636,923,075 | 20,700 | 153,846,153 | 5,000 | ||||||||
December Offering | 32.5 | 234,169,156 | 7,610 | - | - | ||||||||
1,455,037,962 | $ | 45,810 | 421,228,855 | $ | 13,000 | ||||||||
Accumulated Other Comprehensive Income (Loss) | Unrealized Appreciation | ||||||||||||
(Depreciation) of Fixed | Net Derivative | ||||||||||||
Maturity Securities | Unrealized | Gains (Losses) | |||||||||||
on Which Other-Than- | Appreciation | Foreign | Arising from | Retirement | |||||||||
Temporary Credit | (Depreciation) | Currency | Cash Flow | Plan | |||||||||
Impairments | of All Other | Translation | Hedging | Liabilities | |||||||||
(in millions) | Were Recognized | Investments | Adjustments | Activities | Adjustment | Total | |||||||
Balance, January 1, 2012 | $ | -711 | $ | 8,575 | $ | -409 | $ | -17 | $ | -957 | $ | 6,481 | |
Change in unrealized | |||||||||||||
appreciation | |||||||||||||
of investments | 2,306 | 8,404 | - | - | - | 10,710 | |||||||
Change in deferred policy | |||||||||||||
acquisition costs | |||||||||||||
adjustment and other | -49 | -840 | - | - | - | -889 | |||||||
Change in future policy | |||||||||||||
benefits* | -85 | -432 | - | - | - | -517 | |||||||
Change in foreign currency | |||||||||||||
translation adjustments | - | - | -33 | - | - | -33 | |||||||
Change in net derivative | |||||||||||||
gains arising from | |||||||||||||
cash flow hedging | |||||||||||||
activities | - | - | - | 33 | - | 33 | |||||||
Change in net actuarial loss | - | - | - | - | -273 | -273 | |||||||
Change in prior service credit | - | - | - | - | -46 | -46 | |||||||
Change in deferred tax | |||||||||||||
asset (liability) | -886 | -2,252 | 33 | -16 | 232 | -2,889 | |||||||
Total other comprehensive | |||||||||||||
income (loss) | 1,286 | 4,880 | - | 17 | -87 | 6,096 | |||||||
Noncontrolling interests | - | 9 | -6 | - | - | 3 | |||||||
Balance, December 31, 2012 | $ | 575 | $ | 13,446 | $ | -403 | $ | - | $ | -1,044 | $ | 12,574 | |
Change in unrealized | |||||||||||||
appreciation (depreciation) | |||||||||||||
of investments | 464 | -14,069 | - | - | - | -13,605 | |||||||
Change in deferred policy | |||||||||||||
acquisition costs | |||||||||||||
adjustment and other | -127 | 1,000 | - | - | - | 873 | |||||||
Change in future policy | |||||||||||||
benefits | 79 | 2,658 | - | - | - | 2,737 | |||||||
Change in foreign currency | |||||||||||||
translation adjustments | - | - | -454 | - | - | -454 | |||||||
Change in net actuarial loss | - | - | - | - | 1,012 | 1,012 | |||||||
Change in prior service credit | - | - | - | - | -51 | -51 | |||||||
Change in deferred tax | |||||||||||||
asset (liability) | -55 | 3,738 | -102 | - | -330 | 3,251 | |||||||
Total other comprehensive | |||||||||||||
income (loss) | 361 | -6,673 | -556 | - | 631 | -6,237 | |||||||
Noncontrolling interests | - | -16 | -7 | - | - | -23 | |||||||
Balance, December 31, 2013 | $ | 936 | $ | 6,789 | $ | -952 | $ | - | $ | -413 | $ | 6,360 | |
Change in unrealized | |||||||||||||
appreciation | |||||||||||||
of investments | 156 | 7,564 | - | - | - | 7,720 | |||||||
Change in deferred policy | |||||||||||||
acquisition costs | |||||||||||||
adjustment and other | 68 | -495 | - | - | - | -427 | |||||||
Change in future policy | |||||||||||||
benefits | -133 | -1,113 | - | - | - | -1,246 | |||||||
Change in foreign currency | |||||||||||||
translation adjustments | - | - | -833 | - | - | -833 | |||||||
Change in net actuarial loss | - | - | - | - | -815 | -815 | |||||||
Change in prior service credit | - | - | - | - | -49 | -49 | |||||||
Change in deferred tax | |||||||||||||
asset (liability) | 16 | -418 | 1 | - | 308 | -93 | |||||||
Total other comprehensive | |||||||||||||
income (loss) | 107 | 5,538 | -832 | - | -556 | 4,257 | |||||||
Noncontrolling interests | - | - | - | - | - | - | |||||||
Balance, December 31, 2014 | $ | 1,043 | $ | 12,327 | $ | -1,784 | $ | - | $ | -969 | $ | 10,617 | |
* The adjustment to policyholder benefit reserves assumes that the unrealized appreciation on available for sale securities is actually realized and that the proceeds are reinvested at lower yields. | |||||||||||||
Other comprehensive income (loss) reclassification adjustments | Unrealized Appreciation | ||||||||||||
(Depreciation) of Fixed | Net Derivative | ||||||||||||
Maturity Securities | Unrealized | Gains (Losses) | |||||||||||
on Which Other-Than- | Appreciation | Foreign | Arising from | Retirement | |||||||||
Temporary Credit | (Depreciation) | Currency | Cash Flow | Plan | |||||||||
Impairments Were | of All Other | Translation | Hedging | Liabilities | |||||||||
(in millions) | Recognized | Investments | Adjustments | Activities | Adjustment | Total | |||||||
31-Dec-12 | |||||||||||||
Unrealized change arising during period | $ | 2,236 | $ | 8,896 | $ | -33 | $ | -2 | $ | -406 | $ | 10,691 | |
Less: Reclassification adjustments | |||||||||||||
included in net income | 64 | 1,764 | - | -35 | -87 | 1,706 | |||||||
Total other comprehensive income (loss), | |||||||||||||
before income tax expense (benefit) | 2,172 | 7,132 | -33 | 33 | -319 | 8,985 | |||||||
Less: Income tax expense (benefit) | 886 | 2,252 | -33 | 16 | -232 | 2,889 | |||||||
Total other comprehensive income (loss), | |||||||||||||
net of income tax expense (benefit) | $ | 1,286 | $ | 4,880 | $ | - | $ | 17 | $ | -87 | $ | 6,096 | |
31-Dec-13 | |||||||||||||
Unrealized change arising during period | $ | 507 | $ | -9,556 | $ | -454 | $ | - | $ | 851 | $ | -8,652 | |
Less: Reclassification adjustments | |||||||||||||
included in net income | 91 | 855 | - | - | -110 | 836 | |||||||
Total other comprehensive income (loss), | |||||||||||||
before income tax expense (benefit) | 416 | -10,411 | -454 | - | 961 | -9,488 | |||||||
Less: Income tax expense (benefit) | 55 | -3,738 | 102 | - | 330 | -3,251 | |||||||
Total other comprehensive income (loss), | |||||||||||||
net of income tax expense (benefit) | $ | 361 | $ | -6,673 | $ | -556 | $ | - | $ | 631 | $ | -6,237 | |
31-Dec-14 | |||||||||||||
Unrealized change arising during period | $ | 119 | $ | 6,488 | $ | -833 | $ | - | $ | -866 | $ | 4,908 | |
Less: Reclassification adjustments | |||||||||||||
included in net income | 28 | 532 | - | - | -2 | 558 | |||||||
Total other comprehensive income (loss), | |||||||||||||
before income tax expense (benefit) | 91 | 5,956 | -833 | - | -864 | 4,350 | |||||||
Less: Income tax expense (benefit) | -16 | 418 | -1 | - | -308 | 93 | |||||||
Total other comprehensive income (loss), | |||||||||||||
net of income tax expense (benefit) | $ | 107 | $ | 5,538 | $ | -832 | $ | - | $ | -556 | $ | 4,257 | |
Schedule of effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income | Amount Reclassified | ||||||||||||
from Accumulated Other | |||||||||||||
Comprehensive Income | |||||||||||||
Years Ended December 31, | Affected Line Item in the | ||||||||||||
(in millions) | 2014 | 2013 | Consolidated Statements of Income | ||||||||||
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized | |||||||||||||
Investments | $ | 28 | $ | 91 | Other realized capital gains | ||||||||
Total | 28 | 91 | |||||||||||
Unrealized appreciation (depreciation) of all other investments | |||||||||||||
Investments | 669 | 2,452 | Other realized capital gains | ||||||||||
Deferred acquisition costs adjustment | -20 | -28 | Amortization of deferred acquisition costs | ||||||||||
Future policy benefits | -117 | -1,569 | Policyholder benefits and losses incurred | ||||||||||
Total | 532 | 855 | |||||||||||
Change in retirement plan liabilities adjustment | |||||||||||||
Prior-service costs | 47 | 47 | * | ||||||||||
Actuarial gains/(losses) | -49 | -157 | * | ||||||||||
Total | -2 | -110 | |||||||||||
Total reclassifications for the period | $ | 558 | $ | 836 | |||||||||
* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 22 to the Consolidated Financial Statements. |
NONCONTROLLING_INTERESTS_Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
NONCONTROLLING INTERESTS | ||||||||||||||
Rollforward of noncontrolling interests | Redeemable | Non-redeemable | ||||||||||||
Noncontrolling interests | Noncontrolling interests | |||||||||||||
Held by | ||||||||||||||
Department | Held by | |||||||||||||
(in millions) | of Treasury | Other | Total | FRBNY | Other | Total | ||||||||
Year Ended December 31, 2014 | ||||||||||||||
Balance, beginning of year | $ | - | $ | 30 | $ | 30 | $ | - | $ | 611 | $ | 611 | ||
Contributions from noncontrolling interests | - | 1 | 1 | - | 17 | 17 | ||||||||
Distributions to noncontrolling interests | - | - | - | - | -147 | -147 | ||||||||
Deconsolidation | - | -31 | -31 | - | -99 | -99 | ||||||||
Comprehensive loss: | ||||||||||||||
Net loss | - | - | - | - | -5 | -5 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Unrealized gains on investments | - | - | - | - | - | - | ||||||||
Foreign currency translation adjustments | - | - | - | - | - | - | ||||||||
Total other comprehensive | ||||||||||||||
income (loss), net of tax | - | - | - | - | - | - | ||||||||
Total comprehensive income (loss) | - | - | - | - | -5 | -5 | ||||||||
Other | - | - | - | - | -3 | -3 | ||||||||
Balance, end of year | $ | - | $ | - | $ | - | $ | - | $ | 374 | $ | 374 | ||
Year Ended December 31, 2013 | ||||||||||||||
Balance, beginning of year | $ | - | $ | 334 | $ | 334 | $ | - | $ | 667 | $ | 667 | ||
Contributions from noncontrolling interests | - | 48 | 48 | - | 33 | 33 | ||||||||
Distributions to noncontrolling interests | - | -167 | -167 | - | -81 | -81 | ||||||||
Consolidation (deconsolidation) | - | -169 | -169 | - | - | - | ||||||||
Comprehensive loss: | ||||||||||||||
Net income | - | 2 | 2 | - | 5 | 5 | ||||||||
Other comprehensive loss, net of tax: | ||||||||||||||
Unrealized losses on investments | - | -16 | -16 | - | - | - | ||||||||
Foreign currency translation adjustments | - | -2 | -2 | - | -5 | -5 | ||||||||
Total other comprehensive | ||||||||||||||
loss, net of tax | - | -18 | -18 | - | -5 | -5 | ||||||||
Total comprehensive loss | - | -16 | -16 | - | - | - | ||||||||
Other | - | - | - | - | -8 | -8 | ||||||||
Balance, end of year | $ | - | $ | 30 | $ | 30 | $ | - | $ | 611 | $ | 611 | ||
Year Ended December 31, 2012 | ||||||||||||||
Balance, beginning of year | $ | 8,427 | $ | 96 | $ | 8,523 | $ | - | $ | 855 | $ | 855 | ||
Repayment to Department of the Treasury | -8,635 | - | -8,635 | - | - | - | ||||||||
Contributions from noncontrolling interests | - | 36 | 36 | - | -87 | -87 | ||||||||
Distributions to noncontrolling interests | - | 68 | 68 | - | -27 | -27 | ||||||||
Comprehensive income: | ||||||||||||||
Net income | 208 | 14 | 222 | - | 40 | 40 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Unrealized gains on investments | - | 4 | 4 | - | 5 | 5 | ||||||||
Foreign currency translation adjustments | - | - | - | - | -6 | -6 | ||||||||
Total other comprehensive | ||||||||||||||
income (loss), net of tax | - | 4 | 4 | - | -1 | -1 | ||||||||
Total comprehensive income | 208 | 18 | 226 | - | 39 | 39 | ||||||||
Other | - | 116 | 116 | - | -113 | -113 | ||||||||
Balance, end of year | $ | - | $ | 334 | $ | 334 | $ | - | $ | 667 | $ | 667 |
EARNINGS_PER_SHARE_EPS_Tables
EARNINGS PER SHARE (EPS) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
EARNINGS PER SHARE (EPS) | ||||||||||||
Computation of basic and diluted EPS | Years Ended December 31, | |||||||||||
(dollars in millions, except per share data) | 2014 | 2013 | 2012 | |||||||||
Numerator for EPS: | ||||||||||||
Income from continuing operations | $ | 7,574 | $ | 9,008 | $ | 3,699 | ||||||
Less: Net income (loss) from continuing operations attributable to noncontrolling interests: | ||||||||||||
Nonvoting, callable, junior and senior preferred interests | - | - | 208 | |||||||||
Other | -5 | 7 | 54 | |||||||||
Total net income (loss) from continuing operations attributable to noncontrolling interests | -5 | 7 | 262 | |||||||||
Income attributable to AIG common shareholders from continuing operations | 7,579 | 9,001 | 3,437 | |||||||||
Income (loss) from discontinued operations | -50 | 84 | 1 | |||||||||
Income (loss) attributable to AIG common shareholders from discontinued operations | -50 | 84 | 1 | |||||||||
Net income attributable to AIG common shareholders | $ | 7,529 | $ | 9,085 | $ | 3,438 | ||||||
Denominator for EPS: | ||||||||||||
Weighted average shares outstanding — basic | 1,427,959,799 | 1,474,171,690 | 1,687,197,038 | |||||||||
Dilutive shares | 19,593,853 | 7,035,107 | 29,603 | |||||||||
Weighted average shares outstanding — diluted* | 1,447,553,652 | 1,481,206,797 | 1,687,226,641 | |||||||||
Income per common share attributable to AIG: | ||||||||||||
Basic: | ||||||||||||
Income from continuing operations | $ | 5.31 | $ | 6.11 | $ | 2.04 | ||||||
Income from discontinued operations | $ | -0.04 | $ | 0.05 | $ | - | ||||||
Net Income attributable to AIG | $ | 5.27 | $ | 6.16 | $ | 2.04 | ||||||
Diluted: | ||||||||||||
Income from continuing operations | $ | 5.24 | $ | 6.08 | $ | 2.04 | ||||||
Income from discontinued operations | $ | -0.04 | $ | 0.05 | $ | - | ||||||
Net Income attributable to AIG | $ | 5.2 | $ | 6.13 | $ | 2.04 | ||||||
* Dilutive shares primarily result from share-based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of the recapitalization in January 2011. The number of shares excluded from diluted shares outstanding were 0.3 million, 38 million and 78 million for the years ended December 31, 2014, 2013 and 2012, respectively, because the effect of including those shares in the calculation would have been anti-dilutive. |
STATUTORY_FINANCIAL_DATA_AND_R1
STATUTORY FINANCIAL DATA AND RESTRICTIONS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
STATUTORY FINANCIAL DATA AND RESTRICTIONS | |||||||
Schedule of statutory capital and surplus and net income (loss) for AIG property casualty and AIG life and retirement operations in accordance with statutory accounting practices | (in millions) | 2014 | 2013 | 2012 | |||
Years Ended December 31, | |||||||
Statutory net income (loss)(a)(b)(c): | |||||||
Non-Life Insurance Companies: | |||||||
Domestic | $ | 3,377 | $ | 11,440 | $ | 3,701 | |
Foreign | 1,200 | 842 | 1,100 | ||||
Total Non-Life Insurance Companies | 4,577 | 12,282 | 4,801 | ||||
Life Insurance Companies: | |||||||
Domestic | 2,690 | 5,047 | 3,827 | ||||
Foreign | -9 | -9 | -9 | ||||
Total Life Insurance Companies | 2,681 | 5,038 | 3,818 | ||||
At December 31, | |||||||
Statutory capital and surplus(a)(c): | |||||||
Non-Life Insurance Companies: | |||||||
Domestic | $ | 28,198 | $ | 27,685 | |||
Foreign | 12,540 | 12,022 | |||||
Total Non-Life Insurance Companies | 40,738 | 39,707 | |||||
Life Insurance Companies: | |||||||
Domestic | 8,642 | 15,038 | |||||
Foreign | 437 | 129 | |||||
Total Life Insurance Companies | 9,079 | 15,167 | |||||
Aggregate minimum required statutory capital and surplus: | |||||||
Non-Life Insurance Companies: | |||||||
Domestic | $ | 7,101 | $ | 7,019 | |||
Foreign | 9,147 | 9,078 | |||||
Total Non-Life Insurance Companies | 16,248 | 16,097 | |||||
Life Insurance Companies: | |||||||
Domestic | 3,821 | 4,287 | |||||
Foreign | 46 | 45 | |||||
Total Life Insurance Companies | 3,867 | 4,332 | |||||
(a) Excludes discontinued operations and other divested businesses. Statutory capital and surplus and net income (loss) with respect to foreign operations are as of November 30. | |||||||
(b) Non-Life Insurance Companies did not recognize material statutory gains related to legal entity simplification (restructuring) in 2014. Non-Life Insurance Companies include approximately $8.0 billion of recognized statutory gains related to legal entity simplification (restructuring) in 2013. These recognized gains were largely offset by reductions in unrealized gains; therefore, there was no material impact to total surplus. | |||||||
(c) In aggregate, the 2013 Non-Life Insurance Companies and Life Insurance Companies statutory net income (loss) and statutory capital and surplus amounts increased by $1.1 billion and $557 million, respectively, compared to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2013, due to finalization of statutory filings. |
SHAREBASED_AND_OTHER_COMPENSAT1
SHARE-BASED AND OTHER COMPENSATION PLANS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SHARE-BASED AND OTHER COMPENSATION PLANS | ||||||||||
Schedule of share-based compensation expense recognized in Consolidated Statements of Income | Years Ended December 31, | |||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||
Share-based compensation expense - pre-tax* | $ | 349 | $ | 457 | $ | 286 | ||||
Share-based compensation expense - after tax | 227 | 297 | 186 | |||||||
* For the years ended December 31, 2014, 2013 and 2012, $86 million, $315 million and $286 million of pre-tax compensation expense was attributed to unsettled liability-classified awards, the values of which are based on our share price at the reporting date. Our share price was $56.01, $51.05 and $35.30 at December 31, 2014, 2013 and 2012, respectively. In addition, we recognized $120 million and $101 million for immediately vested stock-settled awards issued to retirement eligible employees in 2014 and 2013, respectively. | ||||||||||
Schedule of assumptions used to estimate the fair value of PSUs based on AIG's TSR | 2014 | 2013 | ||||||||
Expected dividend yield(a) | 1.13 | % | 0.38 | % | ||||||
Expected volatility(b) | 23.66 | % | 30.79 | % | ||||||
Risk-free interest rate(c) | 0.76 | % | 0.5 | % | ||||||
(a) The dividend yield is the projected annualized AIG dividend yield estimated by Bloomberg Professional service as of the valuation date. | ||||||||||
(b) The expected volatility is based on the implied volatilities of actively traded stock options from the valuation date through the end of the PSU performance period as estimated by Bloomberg Professional service. | ||||||||||
(c) The risk-free interest rate is the continuously compounded interest rate for the term between the valuation date and the end of the performance period that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the valuation date | ||||||||||
Summary of outstanding share-settled awards | Weighted Average | |||||||||
Number of PSUs(b)/Shares | Grant-Date Fair Value | |||||||||
As of or for the Year | AIG | SICO | AIG | SICO | ||||||
Ended December 31, 2014 | Plans | Plans | Plans | Plans | ||||||
Unvested, beginning of year | 5,195,408 | 85,949 | $ | 36.92 | $ | 1,195.05 | ||||
Granted | 6,882,136 | - | 48.5 | - | ||||||
Vested | -3,566,014 | -23,494 | 45.21 | 85.6 | ||||||
Forfeited | -408,821 | -4,143 | 41.59 | 1,181.04 | ||||||
Unvested, end of year | 8,102,709 | 58,312 | $ | 42.89 | $ | 1,191.01 | ||||
(a) Excludes DSUs and options, which are discussed under the Non-Employee Plans and Stock Options sections, respectively. | ||||||||||
(b) Represents target number of PSUs granted, and does not reflect potential increases or decreases that could result from the final outcome of the performance goals to be determined after the applicable performance period ends. | ||||||||||
Schedule of stock option activity | Weighted | |||||||||
Average | ||||||||||
Remaining | ||||||||||
Weighted Average | Contractual | |||||||||
As of or for the Year Ended December 31, 2014 | Shares | Exercise Price | Life | |||||||
Options: | ||||||||||
Exercisable at beginning of year | 289,790 | $ | 1,113.99 | 2.58 | ||||||
Expired | -87,515 | $ | 1,290.22 | |||||||
Exercisable at end of year | 202,275 | $ | 1,037.74 | 2.17 | ||||||
Summary of SARs (based on target amounts) and cash-settled RSUs (excluding stock salary) including the related expenses | Number of Units | |||||||||
Year Ended December 31, 2014 | TARP RSUs(a) | Other RSUs(b) | SARs(d) | |||||||
Unvested, beginning of year | 857,579 | 1,563,687 | 8,966,246 | |||||||
Granted | - | - | - | |||||||
Vested(c) | -529,049 | -382,468 | -5,521,171 | |||||||
Forfeited | -89,417 | -15,687 | -160,166 | |||||||
Unvested, end of year | 239,113 | 1,165,532 | 3,284,909 | |||||||
Net compensation expense for the year (in millions) | $ | 12 | $ | 31 | $ | 36 | ||||
(a) Total unrecognized compensation and the weighted-average period for which it will be recognized is $3 million and 0.55 year, respectively. | ||||||||||
(b) Total unrecognized compensation and the weighted-average period for which it will be recognized is $13 million and 0.61 year, respectively. | ||||||||||
(c) Also includes SARs for which vesting was accelerated for employees who became retirement eligible or were deceased. | ||||||||||
(d) The ending balance represents awards granted under the 2011 LTIP that vested on January 1, 2015 and were automatically exercised. The value of a SAR as of December 31, 2014 was determined based on the excess of the fair value (as defined) of one share of AIG Common Stock over the strike price of $37.40; the fair value was $55.29 based on the average of the closing sale prices on each trading day during the month of December 2014 in accordance with the plan provisions. No SARs are outstanding after January 1, 2015. |
EMPLOYEE_BENEFITS_Tables
EMPLOYEE BENEFITS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||
Schedule of funded status of the plans reconciled to the amount reported in the balance sheets | As of or for the Years Ended | Pension | Postretirement(a) | |||||||||||||||||||||||||
December 31, | U.S. Plans(b) | Non-U.S. Plans(b) | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Change in projected benefit obligation: | ||||||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 4,882 | $ | 5,161 | $ | 1,072 | $ | 1,205 | $ | 217 | $ | 255 | $ | 52 | $ | 66 | ||||||||||||
Service cost | 173 | 205 | 42 | 47 | 4 | 5 | 2 | 3 | ||||||||||||||||||||
Interest cost | 228 | 201 | 29 | 29 | 9 | 8 | 2 | 2 | ||||||||||||||||||||
Actuarial (gain) loss | 780 | -454 | 114 | 13 | 10 | -41 | 11 | -15 | ||||||||||||||||||||
Benefits paid: | ||||||||||||||||||||||||||||
AIG assets | -15 | -14 | -15 | -13 | -11 | -10 | -1 | -1 | ||||||||||||||||||||
Plan assets | -279 | -217 | -24 | -27 | - | - | - | - | ||||||||||||||||||||
Plan amendment | - | - | -1 | - | - | - | - | - | ||||||||||||||||||||
Curtailments | - | - | - | -1 | - | - | - | -3 | ||||||||||||||||||||
Settlements | - | - | -9 | -35 | - | - | - | - | ||||||||||||||||||||
Foreign exchange effect | - | - | -107 | -126 | - | - | -2 | -1 | ||||||||||||||||||||
Other | - | - | -2 | -20 | - | - | - | 1 | ||||||||||||||||||||
Projected benefit obligation, end of year | $ | 5,769 | $ | 4,882 | $ | 1,099 | $ | 1,072 | $ | 229 | $ | 217 | $ | 64 | $ | 52 | ||||||||||||
Change in plan assets: | ||||||||||||||||||||||||||||
Fair value of plan assets, beginning | ||||||||||||||||||||||||||||
of year | $ | 4,024 | $ | 3,720 | $ | 738 | $ | 727 | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Actual return on plan assets, net of expenses | 266 | 520 | 71 | 92 | - | - | - | - | ||||||||||||||||||||
AIG contributions | 115 | 15 | 67 | 87 | 11 | 10 | 1 | 1 | ||||||||||||||||||||
Benefits paid: | ||||||||||||||||||||||||||||
AIG assets | -15 | -14 | -15 | -13 | -11 | -10 | -1 | -1 | ||||||||||||||||||||
Plan assets | -279 | -217 | -24 | -27 | - | - | - | - | ||||||||||||||||||||
Settlements | - | - | -8 | -35 | - | - | - | - | ||||||||||||||||||||
Foreign exchange effect | - | - | -75 | -93 | - | - | - | - | ||||||||||||||||||||
Other | - | - | -46 | - | - | - | - | - | ||||||||||||||||||||
Fair value of plan assets, end of year | $ | 4,111 | $ | 4,024 | $ | 708 | $ | 738 | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Funded status, end of year | $ | -1,658 | $ | -858 | $ | -391 | $ | -334 | $ | -229 | $ | -217 | $ | -64 | $ | -52 | ||||||||||||
Amounts recognized in the balance | ||||||||||||||||||||||||||||
sheet: | ||||||||||||||||||||||||||||
Assets | $ | - | $ | - | $ | 46 | $ | 91 | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Liabilities | -1,658 | -858 | -437 | -425 | -229 | -217 | -64 | -52 | ||||||||||||||||||||
Total amounts recognized | $ | -1,658 | $ | -858 | $ | -391 | $ | -334 | $ | -229 | $ | -217 | $ | -64 | $ | -52 | ||||||||||||
Pre-tax amounts recognized in Accumulated | ||||||||||||||||||||||||||||
other comprehensive income: | ||||||||||||||||||||||||||||
Net gain (loss) | $ | -1,667 | $ | -908 | $ | -227 | $ | -204 | $ | -9 | $ | 1 | $ | -8 | $ | 3 | ||||||||||||
Prior service credit | 200 | 234 | 11 | 14 | 24 | 35 | 1 | 1 | ||||||||||||||||||||
Total amounts recognized | $ | -1,467 | $ | -674 | $ | -216 | $ | -190 | $ | 15 | $ | 36 | $ | -7 | $ | 4 | ||||||||||||
(a) We do not currently fund postretirement benefits. | ||||||||||||||||||||||||||||
(b) Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $325 million and $276 million for the U.S. and $295 million and $265 million for the non-U.S. at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
Schedule of components of net periodic benefit cost | Pension | Postretirement | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||||||||||||
Service cost | $ | 173 | $ | 205 | $ | 154 | $ | 42 | $ | 47 | $ | 53 | $ | 4 | $ | 5 | $ | 5 | $ | 2 | $ | 3 | $ | 3 | ||||
Interest cost | 228 | 201 | 200 | 29 | 29 | 34 | 9 | 8 | 11 | 2 | 2 | 2 | ||||||||||||||||
Expected return on assets | -288 | -257 | -240 | -22 | -19 | -20 | - | - | - | - | - | - | ||||||||||||||||
Amortization of prior service credit | -33 | -33 | -33 | -3 | -3 | -4 | -11 | -11 | -10 | - | - | - | ||||||||||||||||
Amortization of net loss | 42 | 138 | 118 | 7 | 13 | 13 | - | 1 | - | - | - | - | ||||||||||||||||
Curtailment (gain) loss | - | - | -2 | 1 | -1 | 1 | - | - | - | - | -2 | -1 | ||||||||||||||||
Settlement loss | - | - | - | - | 5 | 4 | - | - | - | - | - | - | ||||||||||||||||
Other | - | - | - | - | 1 | - | - | - | - | - | - | - | ||||||||||||||||
Net periodic benefit cost | $ | 122 | $ | 254 | $ | 197 | $ | 54 | $ | 72 | $ | 81 | $ | 2 | $ | 3 | $ | 6 | $ | 4 | $ | 3 | $ | 4 | ||||
Total recognized in Accumulated other comprehensive income (loss) | $ | -793 | $ | 823 | $ | -250 | $ | -40 | $ | 103 | $ | -36 | $ | -21 | $ | 30 | $ | -23 | $ | -11 | $ | 16 | $ | -11 | ||||
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ | -915 | $ | 569 | $ | -447 | $ | -94 | $ | 31 | $ | -117 | $ | -23 | $ | 27 | $ | -29 | $ | -15 | $ | 13 | $ | -15 | ||||
Schedule of weighted average assumptions used to determine the benefit obligations | Pension | Postretirement | ||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans* | U.S. Plans | Non-U.S. Plans* | |||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
Discount rate | 3.94 | % | 2.33 | % | 3.78 | % | 4.04 | % | ||||||||||||||||||||
Rate of compensation increase | 3.4 | % | 2.89 | % | N/A | 3.29 | % | |||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Discount rate | 4.83 | % | 2.77 | % | 4.59 | % | 4.77 | % | ||||||||||||||||||||
Rate of compensation increase | 3.5 | % | 2.89 | % | N/A | 3.34 | % | |||||||||||||||||||||
* The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits. | ||||||||||||||||||||||||||||
Schedule of weighted average assumptions used to determine the net periodic benefit costs | Pension | Postretirement | ||||||||||||||||||||||||||
At December 31, | U.S. Plans | Non-U.S. Plans* | U.S. Plans | Non-U.S. Plans* | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Discount rate | 4.83 | % | 2.77 | % | 4.59 | % | 4.77 | % | ||||||||||||||||||||
Rate of compensation increase | 3.5 | % | 2.89 | % | N/A | 3.34 | % | |||||||||||||||||||||
Expected return on assets | 7.25 | % | 2.93 | % | N/A | N/A | ||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Discount rate | 3.93 | % | 2.62 | % | 3.67 | % | 3.45 | % | ||||||||||||||||||||
Rate of compensation increase | 4 | % | 2.86 | % | N/A | 3.55 | % | |||||||||||||||||||||
Expected return on assets | 7.25 | % | 2.6 | % | N/A | N/A | ||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||
Discount rate | 4.62 | % | 3.02 | % | 4.51 | % | 4.19 | % | ||||||||||||||||||||
Rate of compensation increase | 4 | % | 2.94 | % | N/A | 3.61 | % | |||||||||||||||||||||
Expected return on assets | 7.25 | % | 2.91 | % | N/A | N/A | ||||||||||||||||||||||
* The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits. | ||||||||||||||||||||||||||||
Schedule of plan assets based on the level within the fair value hierarchy in which the fair value measurement falls | U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
At December 31, 2014 | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 80 | $ | - | $ | - | $ | 80 | $ | 50 | $ | - | $ | - | $ | 50 | ||||||||||||
Equity securities: | ||||||||||||||||||||||||||||
U.S.(a) | 1,244 | 239 | - | 1,483 | 30 | - | - | 30 | ||||||||||||||||||||
International(b) | 787 | 1 | - | 788 | 274 | 48 | - | 322 | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||
U.S. investment grade(c) | - | 768 | 8 | 776 | - | - | - | - | ||||||||||||||||||||
International investment grade(c) | - | - | - | - | 2 | 160 | - | 162 | ||||||||||||||||||||
U.S. and international high yield(d) | - | 347 | - | 347 | - | 61 | - | 61 | ||||||||||||||||||||
Mortgage and other asset-backed | ||||||||||||||||||||||||||||
securities(e) | - | 6 | - | 6 | - | - | - | - | ||||||||||||||||||||
Other fixed maturity securities | - | - | - | - | - | 10 | 17 | 27 | ||||||||||||||||||||
Other investment types: | ||||||||||||||||||||||||||||
Hedge funds(f) | - | 337 | 36 | 373 | - | - | - | - | ||||||||||||||||||||
Futures | 4 | - | - | 4 | - | - | - | - | ||||||||||||||||||||
Private equity(g) | - | - | 228 | 228 | - | - | - | - | ||||||||||||||||||||
Insurance contracts | - | 26 | - | 26 | - | - | 56 | 56 | ||||||||||||||||||||
Total | $ | 2,115 | $ | 1,724 | $ | 272 | $ | 4,111 | $ | 356 | $ | 279 | $ | 73 | $ | 708 | ||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 137 | $ | - | $ | - | $ | 137 | $ | 92 | $ | - | $ | - | $ | 92 | ||||||||||||
Equity securities: | ||||||||||||||||||||||||||||
U.S.(a) | 1,840 | 220 | - | 2,060 | 26 | - | - | 26 | ||||||||||||||||||||
International(b) | 189 | 18 | - | 207 | 254 | 47 | - | 301 | ||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||
U.S. investment grade(c) | - | 702 | 9 | 711 | - | - | - | - | ||||||||||||||||||||
International investment grade(c) | - | - | - | - | 1 | 163 | - | 164 | ||||||||||||||||||||
U.S. and international high yield(d) | - | 281 | - | 281 | - | 82 | - | 82 | ||||||||||||||||||||
Mortgage and other asset-backed | ||||||||||||||||||||||||||||
securities(e) | - | 7 | - | 7 | - | - | - | - | ||||||||||||||||||||
Other fixed maturity securities | - | - | - | - | - | 10 | 19 | 29 | ||||||||||||||||||||
Other investment types: | ||||||||||||||||||||||||||||
Hedge funds(f) | - | 297 | 35 | 332 | - | - | - | - | ||||||||||||||||||||
Futures | 14 | - | - | 14 | - | - | - | - | ||||||||||||||||||||
Private equity(g) | - | - | 248 | 248 | - | - | - | - | ||||||||||||||||||||
Insurance contracts | - | 27 | - | 27 | - | - | 44 | 44 | ||||||||||||||||||||
Total | $ | 2,180 | $ | 1,552 | $ | 292 | $ | 4,024 | $ | 373 | $ | 302 | $ | 63 | $ | 738 | ||||||||||||
(a) Includes index funds that primarily track several indices including S&P 500 and S&P Small Cap 600 as well as other actively managed accounts composed of investments in large cap companies. | ||||||||||||||||||||||||||||
(b) Includes investments in companies in emerging and developed markets. | ||||||||||||||||||||||||||||
(c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. | ||||||||||||||||||||||||||||
(d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade. | ||||||||||||||||||||||||||||
(e) Comprised primarily of investments in U.S. government agency or U.S. government sponsored agency bonds. | ||||||||||||||||||||||||||||
(f) Includes funds composed of macro, event driven, long/short equity, and controlled risk hedge fund strategies and a separately managed controlled risk strategy. | ||||||||||||||||||||||||||||
(g) Includes funds that are diverse by geography, investment strategy, sector and vintage year. | ||||||||||||||||||||||||||||
Schedule of changes in Level 3 plan assets measured at fair value | Changes in | |||||||||||||||||||||||||||
Net | Unrealized Gains | |||||||||||||||||||||||||||
Balance | Realized and | Balance | (Losses) on | |||||||||||||||||||||||||
At December 31, 2014 | Beginning | Unrealized | Transfers | Transfers | at End | Instruments Held | ||||||||||||||||||||||
(in millions) | of year | Gains (Losses) | Purchases | Sales | Issuances | Settlements | In | Out | of year | at End of year | ||||||||||||||||||
U.S. Plan Assets: | ||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||
U.S. investment grade | $ | 9 | $ | 2 | $ | 18 | $ | -21 | $ | - | $ | - | $ | - | $ | - | $ | 8 | $ | 1 | ||||||||
Hedge funds | 35 | 3 | 15 | -32 | - | - | 15 | - | 36 | -1 | ||||||||||||||||||
Private equity | 248 | 11 | 73 | -104 | - | - | - | - | 228 | 10 | ||||||||||||||||||
Total | $ | 292 | $ | 16 | $ | 106 | $ | -157 | $ | - | $ | - | $ | 15 | $ | - | $ | 272 | $ | 10 | ||||||||
Non-U.S. Plan Assets: | ||||||||||||||||||||||||||||
Other fixed maturity securities | $ | 19 | $ | - | $ | - | $ | -2 | $ | - | $ | - | $ | - | $ | - | $ | 17 | $ | - | ||||||||
Insurance contracts | 44 | 9 | 3 | - | - | - | - | - | 56 | - | ||||||||||||||||||
Total | $ | 63 | $ | 9 | $ | 3 | $ | -2 | $ | - | $ | - | $ | - | $ | - | $ | 73 | $ | - | ||||||||
Changes in | ||||||||||||||||||||||||||||
Net | Unrealized Gains | |||||||||||||||||||||||||||
Balance | Realized and | Balance | (Losses) on | |||||||||||||||||||||||||
At December 31, 2013 | Beginning | Unrealized | Transfers | Transfers | at End | Instruments Held | ||||||||||||||||||||||
(in millions) | of year | Gains (Losses) | Purchases | Sales | Issuances | Settlements | In | Out | of year | at End of year | ||||||||||||||||||
U.S. Plan Assets: | ||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||
U.S. investment grade | $ | 11 | $ | -2 | $ | 2 | $ | -2 | $ | - | $ | - | $ | - | $ | - | $ | 9 | $ | -3 | ||||||||
Hedge funds | - | - | - | - | - | - | 35 | - | 35 | - | ||||||||||||||||||
Private equity | 225 | 7 | 44 | -26 | - | -2 | - | - | 248 | -14 | ||||||||||||||||||
Total | $ | 236 | $ | 5 | $ | 46 | $ | -28 | $ | - | $ | -2 | $ | 35 | $ | - | $ | 292 | $ | -17 | ||||||||
Non-U.S. Plan Assets: | ||||||||||||||||||||||||||||
Other fixed maturity securities | $ | 27 | $ | 1 | $ | - | $ | -8 | $ | - | $ | - | $ | - | $ | -1 | $ | 19 | $ | - | ||||||||
Insurance contracts | 43 | 3 | 1 | -1 | - | - | - | -2 | 44 | - | ||||||||||||||||||
Total | $ | 70 | $ | 4 | $ | 1 | $ | -9 | $ | - | $ | - | $ | - | $ | -3 | $ | 63 | $ | - | ||||||||
Schedule of expected future benefit payments, net of participants' contributions | Pension | Postretirement | ||||||||||||||||||||||||||
U.S. | Non-U.S. | U.S. | Non-U.S. | |||||||||||||||||||||||||
(in millions) | Plans | Plans | Plans | Plans | ||||||||||||||||||||||||
2015 | $ | 353 | $ | 39 | $ | 15 | $ | 1 | ||||||||||||||||||||
2016 | 363 | 35 | 15 | 1 | ||||||||||||||||||||||||
2017 | 391 | 39 | 16 | 1 | ||||||||||||||||||||||||
2018 | 395 | 40 | 17 | 2 | ||||||||||||||||||||||||
2019 | 402 | 47 | 18 | 2 | ||||||||||||||||||||||||
2020-2024 | 2,036 | 236 | 96 | 11 | ||||||||||||||||||||||||
Pensions | ||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||
Schedule of accumulated benefit obligations | At December 31, | |||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||||||
U.S. pension benefit plans | $ | 5,601 | $ | 4,683 | ||||||||||||||||||||||||
Non-U.S. pension benefit plans | $ | 1,040 | $ | 1,000 | ||||||||||||||||||||||||
Schedule of projected benefit obligation in excess of the plan assets and the accumulated benefit obligation in excess of the plan assets | At December 31, | PBO Exceeds Fair Value of Plan Assets | ABO Exceeds Fair Value of Plan Assets | |||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Projected benefit obligation | $ | 5,769 | $ | 4,882 | $ | 843 | $ | 806 | $ | 5,769 | $ | 4,882 | $ | 757 | $ | 752 | ||||||||||||
Accumulated benefit obligation | 5,601 | 4,683 | 746 | 704 | 5,601 | 4,683 | 740 | 703 | ||||||||||||||||||||
Fair value of plan assets | 4,111 | 4,024 | 342 | 330 | 4,111 | 4,024 | 329 | 327 | ||||||||||||||||||||
U.S. Pension Plans | ||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||
Schedule of asset allocation percentage by major asset class and target allocation | Target | Actual | Actual | |||||||||||||||||||||||||
At December 31, | 2015 | 2014 | 2013 | |||||||||||||||||||||||||
Asset class: | ||||||||||||||||||||||||||||
Equity securities | 42 | % | 55 | % | 56 | % | ||||||||||||||||||||||
Fixed maturity securities | 27 | % | 28 | % | 25 | % | ||||||||||||||||||||||
Other investments | 31 | % | 17 | % | 19 | % | ||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||
Non U.S. Pension Plans | ||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||
Schedule of asset allocation percentage by major asset class and target allocation | Target | Actual | Actual | |||||||||||||||||||||||||
At December 31, | 2015 | 2014 | 2013 | |||||||||||||||||||||||||
Asset class: | ||||||||||||||||||||||||||||
Equity securities | 35 | % | 50 | % | 45 | % | ||||||||||||||||||||||
Fixed maturity securities | 45 | % | 35 | % | 37 | % | ||||||||||||||||||||||
Other investments | 19 | % | 8 | % | 6 | % | ||||||||||||||||||||||
Cash and cash equivalents | 1 | % | 7 | % | 12 | % | ||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||
Postretirement Plans | ||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||
Schedule of A one percent point change in the assumed healthcare cost trend rate | One Percent | One Percent | ||||||||||||||||||||||||||
At December 31, | Increase | Decrease | ||||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
U.S. plans | $ | 5 | $ | 6 | $ | -5 | $ | -3 | ||||||||||||||||||||
Non-U.S. plans | $ | 12 | $ | 11 | $ | -12 | $ | -7 | ||||||||||||||||||||
U.S. Postretirement Plans | ||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||
Schedule of assumed health care cost trend rates | At December 31, | 2014 | 2013 | |||||||||||||||||||||||||
Following year: | ||||||||||||||||||||||||||||
Medical (before age 65) | 7.07% | 7.21% | ||||||||||||||||||||||||||
Medical (age 65 and older) | 6.75% | 6.80% | ||||||||||||||||||||||||||
Ultimate rate to which cost increase is assumed to decline | 4.50% | 4.50% | ||||||||||||||||||||||||||
Year in which the ultimate trend rate is reached: | ||||||||||||||||||||||||||||
Medical (before age 65) | 2027 | 2027 | ||||||||||||||||||||||||||
Medical (age 65 and older) | 2027 | 2027 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
INCOME TAXES | ||||||||||||||||||||||||
Schedule of income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location | Years Ended December 31, | |||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
U.S. | $ | 8,250 | $ | 8,058 | $ | -948 | ||||||||||||||||||
Foreign | 2,251 | 1,310 | 3,839 | |||||||||||||||||||||
Total | $ | 10,501 | $ | 9,368 | $ | 2,891 | ||||||||||||||||||
Schedule of income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations | Years Ended December 31, | |||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Foreign and U.S. components of actual income tax expense: | ||||||||||||||||||||||||
Foreign: | ||||||||||||||||||||||||
Current | $ | 473 | $ | 549 | $ | 484 | ||||||||||||||||||
Deferred | 154 | -442 | -275 | |||||||||||||||||||||
U.S.: | ||||||||||||||||||||||||
Current | 115 | 131 | 278 | |||||||||||||||||||||
Deferred | 2,185 | 122 | -1,295 | |||||||||||||||||||||
Total | $ | 2,927 | $ | 360 | $ | -808 | ||||||||||||||||||
Schedule of reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate | 2014 | 2013 | 2012 | |||||||||||||||||||||
Pre-Tax | Tax | Percent of | Pre-Tax | Tax | Percent of | Tax | Percent of | |||||||||||||||||
Years Ended December 31, | Income | Expense/ | Pre-Tax | Income | Expense/ | Pre-Tax | Pre-Tax | Expense/ | Pre-Tax | |||||||||||||||
(dollars in millions) | (Loss) | (Benefit) | Income (Loss) | (Loss) | (Benefit) | Income (Loss) | Income | (Benefit) | Income | |||||||||||||||
U.S. federal income tax at statutory | $ | 10,524 | $ | 3,683 | 35 | % | $ | 9,518 | $ | 3,331 | 35 | % | $ | 2,891 | $ | 1,012 | 35 | % | ||||||
rate adjustments: | ||||||||||||||||||||||||
Tax exempt interest | -236 | -2.2 | -298 | -3.1 | -302 | -10.4 | ||||||||||||||||||
Investment in subsidiaries | ||||||||||||||||||||||||
and partnerships | - | - | - | - | -26 | -0.9 | ||||||||||||||||||
Uncertain tax positions | -81 | -0.8 | 632 | 6.6 | 446 | 15.4 | ||||||||||||||||||
Dividends received deduction | -62 | -0.6 | -75 | -0.8 | -58 | -2 | ||||||||||||||||||
Effect of foreign operations | -68 | -0.6 | -5 | -0.1 | 171 | 5.9 | ||||||||||||||||||
State income taxes | 39 | 0.4 | -21 | -0.2 | -48 | -1.7 | ||||||||||||||||||
Other | -159 | -1.5 | 13 | 0.1 | -96 | -3.3 | ||||||||||||||||||
Effect of discontinued operations | 65 | 0.6 | 14 | 0.1 | - | - | ||||||||||||||||||
Valuation allowance: | ||||||||||||||||||||||||
Continuing operations | -181 | -1.7 | -3,165 | -33.3 | -1,907 | -65.9 | ||||||||||||||||||
Consolidated total amounts | 10,524 | 3,000 | 28.5 | 9,518 | 426 | 4.5 | 2,891 | -808 | -27.9 | |||||||||||||||
Amounts attributable to discontinued | ||||||||||||||||||||||||
operations | 23 | 73 | 317.4 | 150 | 66 | 44.3 | - | - | - | |||||||||||||||
Amounts attributable to continuing | ||||||||||||||||||||||||
operations | $ | 10,501 | $ | 2,927 | 27.9 | % | $ | 9,368 | $ | 360 | 3.8 | % | $ | 2,891 | $ | -808 | -27.9 | % | ||||||
Schedule of components of the net deferred tax asset | December 31, | |||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||||||
Losses and tax credit carryforwards | $ | 18,203 | $ | 20,825 | ||||||||||||||||||||
Basis Differences on Investments | 4,114 | 4,843 | ||||||||||||||||||||||
Life Policy Reserves | 629 | 445 | ||||||||||||||||||||||
Accruals not currently deductible, and other | 1,804 | 2,935 | ||||||||||||||||||||||
Investments in foreign subsidiaries | -58 | 1,035 | ||||||||||||||||||||||
Loss reserve discount | 1,378 | 1,164 | ||||||||||||||||||||||
Loan loss and other reserves | 152 | 888 | ||||||||||||||||||||||
Unearned premium reserve reduction | 1,269 | 1,451 | ||||||||||||||||||||||
Employee benefits | 1,543 | 1,217 | ||||||||||||||||||||||
Total deferred tax assets | 29,034 | 34,803 | ||||||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||||||
Deferred policy acquisition costs | -3,003 | -3,396 | ||||||||||||||||||||||
Flight equipment, fixed assets and intangible assets | 28 | -2,354 | ||||||||||||||||||||||
Unrealized gains related to available for sale debt securities | -5,795 | -3,693 | ||||||||||||||||||||||
Other | 220 | -571 | ||||||||||||||||||||||
Total deferred tax liabilities | -8,550 | -10,014 | ||||||||||||||||||||||
Net deferred tax assets before valuation allowance | 20,484 | 24,789 | ||||||||||||||||||||||
Valuation allowance | -1,739 | -3,596 | ||||||||||||||||||||||
Net deferred tax assets (liabilities) | $ | 18,745 | $ | 21,193 | ||||||||||||||||||||
Schedule of consolidated income tax group tax losses and credits carryforwards | 31-Dec-14 | Tax | Expiration | |||||||||||||||||||||
(in millions) | Gross | Effected | Periods | |||||||||||||||||||||
Net operating loss carryforwards | $ | 33,021 | $ | 11,557 | 2028 - 2031 | |||||||||||||||||||
Foreign tax credit carryforwards | - | 7,109 | 2016 - 2023 | |||||||||||||||||||||
Other carryforwards and other | - | 1,034 | Various | |||||||||||||||||||||
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards | $ | 19,700 | ||||||||||||||||||||||
Schedule of net deferred tax assets (liabilities) | December 31, | |||||||||||||||||||||||
(in millions) | 2014 | 2013 | ||||||||||||||||||||||
Net U.S. consolidated return group deferred tax assets | $ | 24,543 | $ | 26,296 | ||||||||||||||||||||
Net deferred tax assets (liabilities) in accumulated other comprehensive income | -5,510 | -3,337 | ||||||||||||||||||||||
Valuation allowance | -129 | -1,650 | ||||||||||||||||||||||
Subtotal | 18,904 | 21,309 | ||||||||||||||||||||||
Net foreign, state and local deferred tax assets | 2,045 | 2,563 | ||||||||||||||||||||||
Valuation allowance | -1,610 | -1,947 | ||||||||||||||||||||||
Subtotal | 435 | 616 | ||||||||||||||||||||||
Subtotal - Net U.S, foreign, state and local deferred tax assets | 19,339 | 21,925 | ||||||||||||||||||||||
Net foreign, state and local deferred tax liabilities | -594 | -732 | ||||||||||||||||||||||
Total AIG net deferred tax assets (liabilities) | $ | 18,745 | $ | 21,193 | ||||||||||||||||||||
Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | Years Ended December 31, | |||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Gross unrecognized tax benefits, beginning of year | $ | 4,340 | $ | 4,385 | $ | 4,279 | ||||||||||||||||||
Increases in tax positions for prior years | 91 | 680 | 336 | |||||||||||||||||||||
Decreases in tax positions for prior years | -60 | -796 | -264 | |||||||||||||||||||||
Increases in tax positions for current year | 10 | 43 | 47 | |||||||||||||||||||||
Lapse in statute of limitations | -6 | -20 | -8 | |||||||||||||||||||||
Settlements | - | -2 | -5 | |||||||||||||||||||||
Activity of discontinued operations | 20 | 50 | - | |||||||||||||||||||||
Gross unrecognized tax benefits, end of year | $ | 4,395 | $ | 4,340 | $ | 4,385 | ||||||||||||||||||
Schedule of tax years that remain subject to examination by major tax jurisdictions | At December 31, 2014 | Open Tax Years | ||||||||||||||||||||||
Major Tax Jurisdiction | ||||||||||||||||||||||||
United States | 2000-2013 | |||||||||||||||||||||||
Australia | 2010-2013 | |||||||||||||||||||||||
France | 2012-2013 | |||||||||||||||||||||||
Japan | 2008-2013 | |||||||||||||||||||||||
Korea | 2009-2013 | |||||||||||||||||||||||
Singapore | 2011-2013 | |||||||||||||||||||||||
United Kingdom | 2013 |
QUARTERLY_FINANCIAL_INFORMATIO1
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||||
Consolidated Statements of Income (Loss) | Three Months Ended | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
(dollars in millions, except per share data) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||
Total revenues | $ | 16,163 | $ | 17,008 | $ | 16,136 | $ | 18,485 | $ | 16,697 | $ | 15,981 | $ | 15,410 | $ | 17,400 | |
Income from continuing | |||||||||||||||||
operations before income taxes | 2,273 | 2,875 | 4,480 | 3,165 | 3,019 | 1,178 | 729 | 2,150 | |||||||||
Income (loss) from discontinued | |||||||||||||||||
operations, net of income taxes | -47 | 73 | 30 | 18 | 2 | -18 | -35 | 11 | |||||||||
Net income | 1,612 | 2,231 | 3,036 | 2,758 | 2,201 | 2,130 | 675 | 1,973 | |||||||||
Net income (loss) from continuing | |||||||||||||||||
operations attributable to | |||||||||||||||||
noncontrolling interests: | |||||||||||||||||
Nonvoting, callable, junior, and | |||||||||||||||||
senior preferred interests | - | - | - | - | - | - | - | - | |||||||||
Other | 3 | 25 | -37 | 27 | 9 | -40 | 20 | -5 | |||||||||
Total net income (loss) | |||||||||||||||||
attributable | |||||||||||||||||
to noncontrolling interests | 3 | 25 | -37 | 27 | 9 | -40 | 20 | -5 | |||||||||
Net income attributable to AIG* | $ | 1,609 | $ | 2,206 | $ | 3,073 | $ | 2,731 | $ | 2,192 | $ | 2,170 | $ | 655 | $ | 1,978 | |
Earnings (loss) per common share | |||||||||||||||||
attributable to AIG common | |||||||||||||||||
shareholders: | |||||||||||||||||
Basic: | |||||||||||||||||
Income from continuing | |||||||||||||||||
operations | $ | 1.13 | $ | 1.44 | $ | 2.11 | $ | 1.84 | $ | 1.54 | $ | 1.48 | $ | 0.5 | $ | 1.34 | |
Income (loss) from discontinued | |||||||||||||||||
operations | $ | -0.03 | $ | 0.05 | $ | 0.02 | $ | 0.01 | $ | - | $ | -0.01 | $ | -0.03 | $ | 0.01 | |
Diluted: | |||||||||||||||||
Income from continuing | |||||||||||||||||
operations | $ | 1.12 | $ | 1.44 | $ | 2.08 | $ | 1.83 | $ | 1.52 | $ | 1.47 | $ | 0.49 | $ | 1.33 | |
Income (loss) from discontinued | |||||||||||||||||
operations | $ | -0.03 | $ | 0.05 | $ | 0.02 | $ | 0.01 | $ | - | $ | -0.01 | $ | -0.03 | $ | 0.01 | |
Weighted average shares outstanding: | |||||||||||||||||
Basic | 1,459,249,393 | 1,476,471,097 | 1,442,397,111 | 1,476,512,720 | 1,419,239,774 | 1,475,053,126 | 1,391,790,420 | 1,468,725,573 | |||||||||
Diluted | 1,472,510,813 | 1,476,678,931 | 1,464,676,330 | 1,482,246,618 | 1,442,067,842 | 1,485,322,858 | 1,412,162,456 | 1,480,654,482 | |||||||||
Noteworthy quarterly items - | |||||||||||||||||
income (expense): | |||||||||||||||||
Other-than-temporary | |||||||||||||||||
impairments | -59 | -48 | -55 | -46 | -50 | -52 | -83 | -86 | |||||||||
Net (gain) loss on sale of | |||||||||||||||||
divested businesses | -4 | - | -2,174 | 47 | -18 | - | -1 | 1 | |||||||||
Federal and foreign valuation | |||||||||||||||||
allowance for deferred tax assets | 65 | 761 | 75 | 509 | 21 | 1,154 | 20 | 741 | |||||||||
Net gain (loss) on extinguishment of | |||||||||||||||||
debt | -238 | -340 | -34 | -38 | -742 | -81 | -1,268 | -192 | |||||||||
* Net income attributable to AIG for the three-month period ended December 31, 2013 includes $327 million of net charges primarily related to income taxes to correct prior 2013 quarters presented. Such amounts are not material to any period presented. |
INFORMATION_PROVIDED_IN_CONNEC1
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | |||||||||||
Condensed Consolidating Balance Sheets | American | ||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
31-Dec-14 | |||||||||||
Assets: | |||||||||||
Short-term investments | $ | 6,078 | $ | - | $ | 6,231 | $ | -1,066 | $ | 11,243 | |
Other investments(a) | 11,415 | - | 333,108 | - | 344,523 | ||||||
Total investments | 17,493 | - | 339,339 | -1,066 | 355,766 | ||||||
Cash | 26 | 91 | 1,641 | - | 1,758 | ||||||
Loans to subsidiaries(b) | 31,070 | - | 779 | -31,849 | - | ||||||
Investment in consolidated subsidiaries(b) | 62,811 | 35,850 | - | -98,661 | - | ||||||
Other assets, including deferred income taxes | 23,835 | 2,305 | 141,826 | -9,909 | 158,057 | ||||||
Assets held for sale | - | - | - | - | - | ||||||
Total assets | $ | 135,235 | $ | 38,246 | $ | 483,585 | $ | -141,485 | $ | 515,581 | |
Liabilities: | |||||||||||
Insurance liabilities | $ | - | $ | - | $ | 270,615 | $ | - | $ | 270,615 | |
Long-term debt | 21,190 | 820 | 9,207 | - | 31,217 | ||||||
Other liabilities, including intercompany balances(a)(c) | 6,196 | 2,314 | 108,189 | -10,222 | 106,477 | ||||||
Loans from subsidiaries(b) | 951 | - | 30,898 | -31,849 | - | ||||||
Liabilities held for sale | - | - | - | - | - | ||||||
Total liabilities | 28,337 | 3,134 | 418,909 | -42,071 | 408,309 | ||||||
Redeemable noncontrolling interests (see Note 18) | - | - | - | - | - | ||||||
Total AIG shareholders’ equity | 106,898 | 35,112 | 64,302 | -99,414 | 106,898 | ||||||
Non-redeemable noncontrolling interests | - | - | 374 | - | 374 | ||||||
Total equity | 106,898 | 35,112 | 64,676 | -99,414 | 107,272 | ||||||
Total liabilities and equity | $ | 135,235 | $ | 38,246 | $ | 483,585 | $ | -141,485 | $ | 515,581 | |
31-Dec-13 | |||||||||||
Assets: | |||||||||||
Short-term investments | $ | 11,965 | $ | - | $ | 11,404 | $ | -1,752 | $ | 21,617 | |
Other investments(a) | 7,561 | - | 327,250 | - | 334,811 | ||||||
Total investments | 19,526 | - | 338,654 | -1,752 | 356,428 | ||||||
Cash | 30 | 51 | 2,160 | - | 2,241 | ||||||
Loans to subsidiaries(b) | 31,220 | - | 854 | -32,074 | - | ||||||
Investment in consolidated subsidiaries(b) | 66,201 | 39,103 | - | -105,304 | - | ||||||
Other assets, including deferred income taxes | 21,606 | 112 | 132,492 | -1,086 | 153,124 | ||||||
Assets held for sale | - | - | 29,536 | - | 29,536 | ||||||
Total assets | $ | 138,583 | $ | 39,266 | $ | 503,696 | $ | -140,216 | $ | 541,329 | |
Liabilities: | |||||||||||
Insurance liabilities | $ | - | $ | - | $ | 271,252 | $ | - | $ | 271,252 | |
Long-term debt | 30,839 | 1,352 | 9,502 | - | 41,693 | ||||||
Other liabilities, including intercompany balances(a)(c) | 6,422 | 161 | 98,908 | -2,766 | 102,725 | ||||||
Loans from subsidiaries(b) | 852 | 200 | 31,173 | -32,225 | - | ||||||
Liabilities held for sale | - | - | 24,548 | - | 24,548 | ||||||
Total liabilities | 38,113 | 1,713 | 435,383 | -34,991 | 440,218 | ||||||
Redeemable noncontrolling interests (see Note 18) | - | - | 30 | - | 30 | ||||||
Total AIG shareholders’ equity | 100,470 | 37,553 | 67,672 | -105,225 | 100,470 | ||||||
Non-redeemable noncontrolling interests | - | - | 611 | - | 611 | ||||||
Total equity | 100,470 | 37,553 | 68,283 | -105,225 | 101,081 | ||||||
Total liabilities and equity | $ | 138,583 | $ | 39,266 | $ | 503,696 | $ | -140,216 | $ | 541,329 | |
(a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment. | |||||||||||
(b) Eliminated in consolidation. | |||||||||||
(c) For December 31, 2014 and 2013, includes intercompany tax payable of $0.3 billion and $1.4 billion, respectively, and intercompany derivative liabilities of $275 million and $249 million, respectively, for American International Group, Inc. (As Guarantor) and intercompany tax receivable of $3 million and $98 million, respectively, for AIGLH. | |||||||||||
Condensed Consolidating Statements of Income (Loss) | |||||||||||
American | |||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
Year Ended December 31, 2014 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 9,450 | $ | 3,519 | $ | - | $ | -12,969 | $ | - | |
Other income | 1,658 | - | 63,157 | -409 | 64,406 | ||||||
Total revenues | 11,108 | 3,519 | 63,157 | -13,378 | 64,406 | ||||||
Expenses: | |||||||||||
Interest expense | 1,507 | 100 | 243 | -132 | 1,718 | ||||||
Loss on extinguishment of debt | 2,248 | - | 85 | -51 | 2,282 | ||||||
Other expenses | 1,546 | 203 | 48,315 | -159 | 49,905 | ||||||
Total expenses | 5,301 | 303 | 48,643 | -342 | 53,905 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 5,807 | 3,216 | 14,514 | -13,036 | 10,501 | ||||||
Income tax expense (benefit) | -1,735 | -103 | 4,817 | -52 | 2,927 | ||||||
Income (loss) from continuing operations | 7,542 | 3,319 | 9,697 | -12,984 | 7,574 | ||||||
Loss from discontinued operations, net of income taxes | -13 | - | -37 | - | -50 | ||||||
Net income (loss) | 7,529 | 3,319 | 9,660 | -12,984 | 7,524 | ||||||
Less: | |||||||||||
Net loss from continuing operations attributable to | |||||||||||
noncontrolling interests | - | - | -5 | - | -5 | ||||||
Net income (loss) attributable to AIG | $ | 7,529 | $ | 3,319 | $ | 9,665 | $ | -12,984 | $ | 7,529 | |
Year Ended December 31, 2013 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 7,638 | $ | 4,075 | $ | - | $ | -11,713 | $ | - | |
Other income | 1,487 | 1 | 67,698 | -312 | 68,874 | ||||||
Total revenues | 9,125 | 4,076 | 67,698 | -12,025 | 68,874 | ||||||
Expenses: | |||||||||||
Interest expense | 1,938 | 126 | 233 | -155 | 2,142 | ||||||
Loss on extinguishment of debt | 580 | - | 71 | - | 651 | ||||||
Other expenses | 1,520 | 75 | 55,277 | -159 | 56,713 | ||||||
Total expenses | 4,038 | 201 | 55,581 | -314 | 59,506 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 5,087 | 3,875 | 12,117 | -11,711 | 9,368 | ||||||
Income tax expense (benefit) | -4,012 | -58 | 4,454 | -24 | 360 | ||||||
Income (loss) from continuing operations | 9,099 | 3,933 | 7,663 | -11,687 | 9,008 | ||||||
Income (loss) from discontinued operations, net of income taxes | -14 | - | 98 | - | 84 | ||||||
Net income (loss) | 9,085 | 3,933 | 7,761 | -11,687 | 9,092 | ||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to | |||||||||||
noncontrolling interests: | - | - | 7 | - | 7 | ||||||
Net income (loss) attributable to AIG | $ | 9,085 | $ | 3,933 | $ | 7,754 | $ | -11,687 | $ | 9,085 | |
Year Ended December 31, 2012 | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries* | $ | 1,970 | $ | 2,315 | $ | - | $ | -4,285 | $ | - | |
Change in fair value of ML III | 2,287 | - | 601 | - | 2,888 | ||||||
Other income | 1,911 | 49 | 66,749 | -383 | 68,326 | ||||||
Total revenues | 6,168 | 2,364 | 67,350 | -4,668 | 71,214 | ||||||
Expenses: | |||||||||||
Interest expense on FRBNY Credit Facility | - | - | - | - | - | ||||||
Other interest expense | 2,257 | 174 | 271 | -383 | 2,319 | ||||||
Loss on extinguishment of debt | 9 | - | 23 | - | 32 | ||||||
Other expenses | 1,602 | - | 64,370 | - | 65,972 | ||||||
Total expenses | 3,868 | 174 | 64,664 | -383 | 68,323 | ||||||
Income (loss) from continuing operations before income tax | |||||||||||
expense (benefit) | 2,300 | 2,190 | 2,686 | -4,285 | 2,891 | ||||||
Income tax expense (benefit) | -1,137 | -17 | 346 | - | -808 | ||||||
Income (loss) from continuing operations | 3,437 | 2,207 | 2,340 | -4,285 | 3,699 | ||||||
Income from discontinued operations, net of income taxes | 1 | - | - | - | 1 | ||||||
Net income (loss) | 3,438 | 2,207 | 2,340 | -4,285 | 3,700 | ||||||
Less: | |||||||||||
Net income from continuing operations attributable to | |||||||||||
noncontrolling interests: | |||||||||||
Nonvoting, callable, junior and senior preferred interests | - | - | - | 208 | 208 | ||||||
Other | - | - | 54 | - | 54 | ||||||
Total net income from continuing operations attributable to | |||||||||||
noncontrolling interests | - | - | 54 | 208 | 262 | ||||||
Net Income (loss) from discontinued operations attributable to | |||||||||||
noncontrolling interests | - | - | - | - | - | ||||||
Total net income attributable to noncontrolling interests | - | - | 54 | 208 | 262 | ||||||
Net income (loss) attributable to AIG | $ | 3,438 | $ | 2,207 | $ | 2,286 | $ | -4,493 | $ | 3,438 | |
* Eliminated in consolidation. | |||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | American | ||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries | Eliminations | AIG | ||||||
Year Ended December 31, 2014 | |||||||||||
Net income (loss) | $ | 7,529 | $ | 3,319 | $ | 9,660 | $ | -12,984 | $ | 7,524 | |
Other comprehensive income (loss) | 4,257 | 2,794 | 3,235 | -6,029 | 4,257 | ||||||
Comprehensive income (loss) | 11,786 | 6,113 | 12,895 | -19,013 | 11,781 | ||||||
Total comprehensive loss attributable to noncontrolling interests | - | - | -5 | - | -5 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 11,786 | $ | 6,113 | $ | 12,900 | $ | -19,013 | $ | 11,786 | |
Year Ended December 31, 2013 | |||||||||||
Net income (loss) | $ | 9,085 | $ | 3,933 | $ | 7,761 | $ | -11,687 | $ | 9,092 | |
Other comprehensive income (loss) | -6,214 | -4,689 | -6,719 | 11,385 | -6,237 | ||||||
Comprehensive income (loss) | 2,871 | -756 | 1,042 | -302 | 2,855 | ||||||
Total comprehensive loss attributable to noncontrolling interests | - | - | -16 | - | -16 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 2,871 | $ | -756 | $ | 1,058 | $ | -302 | $ | 2,871 | |
Year Ended December 31, 2012 | |||||||||||
Net income (loss) | $ | 3,438 | $ | 2,207 | $ | 2,340 | $ | -4,285 | $ | 3,700 | |
Other comprehensive income (loss) | 6,093 | 3,973 | 7,158 | -11,128 | 6,096 | ||||||
Comprehensive income (loss) | 9,531 | 6,180 | 9,498 | -15,413 | 9,796 | ||||||
Total comprehensive income attributable to noncontrolling interests | - | - | 57 | 208 | 265 | ||||||
Comprehensive income (loss) attributable to AIG | $ | 9,531 | $ | 6,180 | $ | 9,441 | $ | -15,621 | $ | 9,531 | |
Condensed Consolidating Statements of Cash Flows | American | ||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries* | Eliminations* | AIG | ||||||
Year Ended December 31, 2014 | |||||||||||
Net cash (used in) provided by operating activities | $ | 9,316 | $ | 6,155 | $ | 8,979 | $ | -19,443 | $ | 5,007 | |
Cash flows from investing activities: | |||||||||||
Sales of investments | 3,036 | - | 65,108 | -2,040 | 66,104 | ||||||
Purchase of investments | -1,051 | - | -59,099 | 2,040 | -58,110 | ||||||
Loans to subsidiaries – net | 446 | - | 169 | -615 | - | ||||||
Contributions to subsidiaries | -148 | - | 296 | -148 | - | ||||||
Net change in restricted cash | -501 | - | -946 | - | -1,447 | ||||||
Net change in short-term investments | 5,792 | - | 2,968 | - | 8,760 | ||||||
Other, net | -141 | - | -882 | - | -1,023 | ||||||
Net cash provided by investing activities | 7,433 | - | 7,614 | -763 | 14,284 | ||||||
Cash flows from financing activities: | |||||||||||
Issuance of long-term debt | 3,247 | - | 3,440 | - | 6,687 | ||||||
Repayments of long-term debt | -14,468 | -477 | -1,215 | - | -16,160 | ||||||
Purchase of Common Stock | -4,902 | - | - | - | -4,902 | ||||||
Intercompany loans - net | 110 | -280 | -445 | 615 | - | ||||||
Cash dividends paid | -712 | -5,358 | -14,085 | 19,443 | -712 | ||||||
Other, net | -28 | - | -4,821 | 148 | -4,701 | ||||||
Net cash (used in) financing activities | -16,753 | -6,115 | -17,126 | 20,206 | -19,788 | ||||||
Effect of exchange rate changes on cash | - | - | -74 | - | -74 | ||||||
Change in cash | -4 | 40 | -607 | - | -571 | ||||||
Cash at beginning of year | 30 | 51 | 2,160 | - | 2,241 | ||||||
Change in cash of businesses held for sale | - | - | 88 | - | 88 | ||||||
Cash at end of year | $ | 26 | $ | 91 | $ | 1,641 | $ | - | $ | 1,758 | |
Year Ended December 31, 2013 | |||||||||||
Net cash (used in) provided by operating activities | $ | 6,422 | $ | 4,488 | $ | 7,385 | $ | -12,430 | $ | 5,865 | |
Cash flows from investing activities: | |||||||||||
Sales of investments | 1,425 | - | 78,868 | -3,199 | 77,094 | ||||||
Purchase of investments | -5,506 | - | -75,580 | 3,199 | -77,887 | ||||||
Loans to subsidiaries – net | 3,660 | - | 395 | -4,055 | - | ||||||
Contributions to subsidiaries | -2,081 | -1 | - | 2,082 | - | ||||||
Net change in restricted cash | 493 | - | 751 | - | 1,244 | ||||||
Net change in short-term investments | 2,361 | - | 5,481 | - | 7,842 | ||||||
Other, net | 130 | - | -1,324 | - | -1,194 | ||||||
Net cash (used in) provided by investing activities | 482 | -1 | 8,591 | -1,973 | 7,099 | ||||||
Cash flows from financing activities: | |||||||||||
Issuance of long-term debt | 2,015 | - | 3,220 | - | 5,235 | ||||||
Repayments of long-term debt | -7,439 | -245 | -6,513 | - | -14,197 | ||||||
Intercompany loans - net | -123 | -273 | -3,659 | 4,055 | - | ||||||
Purchase of common stock | -597 | - | - | - | -597 | ||||||
Cash dividends paid to shareholders | -294 | -3,991 | -8,439 | 12,430 | -294 | ||||||
Other, net | -517 | - | 694 | -2,082 | -1,905 | ||||||
Net cash (used in) provided by financing activities | -6,955 | -4,509 | -14,697 | 14,403 | -11,758 | ||||||
Effect of exchange rate changes on cash | - | - | -92 | - | -92 | ||||||
Change in cash | -51 | -22 | 1,187 | - | 1,114 | ||||||
Cash at beginning of year | 81 | 73 | 997 | - | 1,151 | ||||||
Reclassification to assets held for sale | - | - | -24 | - | -24 | ||||||
Cash at end of year | $ | 30 | $ | 51 | $ | 2,160 | $ | - | $ | 2,241 | |
Year Ended December 31, 2012 | |||||||||||
Net cash (used in) provided by operating activities | $ | -825 | $ | 2,682 | $ | 6,387 | $ | -4,568 | $ | 3,676 | |
Cash flows from investing activities: | |||||||||||
Sales of investments | 16,874 | - | 90,070 | -5,538 | 101,406 | ||||||
Purchase of investments | -4,406 | - | -77,699 | 5,538 | -76,567 | ||||||
Loans to subsidiaries – net | 5,126 | - | 4,654 | -9,780 | - | ||||||
Contributions to subsidiaries | -152 | - | - | 152 | - | ||||||
Net change in restricted cash | -377 | - | 791 | - | 414 | ||||||
Net change in short-term investments | -2,029 | - | -6,080 | - | -8,109 | ||||||
Other, net | 259 | - | -791 | - | -532 | ||||||
Net cash (used in) provided by investing activities | 15,295 | - | 10,945 | -9,628 | 16,612 | ||||||
Cash flows from financing activities: | |||||||||||
Issuance of long-term debt | 3,754 | - | 4,858 | - | 8,612 | ||||||
Repayments of long-term debt | -3,238 | - | -7,863 | - | -11,101 | ||||||
Intercompany loans - net | -2,032 | -2,622 | -5,126 | 9,780 | - | ||||||
Purchase of common stock | -13,000 | - | - | - | -13,000 | ||||||
Cash dividends paid to shareholders | - | - | -4,568 | 4,568 | - | ||||||
Other, net | -49 | - | -4,874 | -152 | -5,075 | ||||||
Net cash (used in) provided by financing activities | -14,565 | -2,622 | -17,573 | 14,196 | -20,564 | ||||||
Effect of exchange rate changes on cash | - | - | 16 | - | 16 | ||||||
Change in cash | -95 | 60 | -225 | - | -260 | ||||||
Cash at beginning of year | 176 | 13 | 1,285 | - | 1,474 | ||||||
Change in cash of businesses held for sale | - | - | -63 | - | -63 | ||||||
Cash at end of year | $ | 81 | $ | 73 | $ | 997 | $ | - | $ | 1,151 | |
* | |||||||||||
Supplementary Disclosure of Condensed Consolidating Cash Flow Information | American | ||||||||||
International | Reclassifications | ||||||||||
Group, Inc. | Other | and | Consolidated | ||||||||
(in millions) | (As Guarantor) | AIGLH | Subsidiaries* | Eliminations* | AIG | ||||||
Cash (paid) received during the year ended December 31, 2014 for: | |||||||||||
Interest: | |||||||||||
Third party | $ | -1,624 | $ | -87 | $ | -1,656 | $ | - | $ | -3,367 | |
Intercompany | 5 | -7 | 2 | - | - | ||||||
Taxes: | |||||||||||
Income tax authorities | $ | -18 | $ | - | $ | -719 | $ | - | $ | -737 | |
Intercompany | 1,172 | - | -1,172 | - | - | ||||||
Cash (paid) received during the year ended December 31, 2013 for: | |||||||||||
Interest: | |||||||||||
Third party | $ | -1,963 | $ | -111 | $ | -1,782 | $ | - | $ | -3,856 | |
Intercompany | -12 | -21 | 33 | - | - | ||||||
Taxes: | |||||||||||
Income tax authorities | $ | -161 | $ | - | $ | -635 | $ | - | $ | -796 | |
Intercompany | 288 | -78 | -210 | - | - | ||||||
Cash (paid) received during the year ended December 31, 2012 for: | |||||||||||
Interest: | |||||||||||
Third party* | $ | -2,089 | $ | -128 | $ | -1,820 | $ | - | $ | -4,037 | |
Intercompany | -133 | -56 | 189 | - | - | ||||||
Taxes: | |||||||||||
Income tax authorities | $ | -7 | $ | - | $ | -440 | $ | - | $ | -447 | |
Intercompany | 230 | -41 | -189 | - | - | ||||||
Supplementary disclosure of non-cash activities | Years Ended December 31, | ||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||
Intercompany non-cash financing and investing activities: | |||||||||||
Capital contributions | |||||||||||
in the form of bond available for sale securities | $ | - | $ | - | $ | 4,078 | |||||
to subsidiaries through forgiveness of loans | - | 341 | - | ||||||||
Other capital contributions - net | 2,457 | 523 | 579 | ||||||||
Return of capital | 4,836 | - | - | ||||||||
Return of capital and dividend received | |||||||||||
in the form of cancellation of intercompany loan | - | - | 9,303 | ||||||||
in the form of other bond securities | 3,088 | - | 3,320 |
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Billions, except Share data in Millions, unless otherwise specified | Dec. 31, 2014 | 14-May-14 | Dec. 31, 2013 | Dec. 31, 2012 | 13-May-14 |
Basis of Presentation [Line Items] | |||||
Common stock, par value (in dollars per share) | 2.5 | $2.50 | |||
Closing price per share (in dollars per share) | 56.01 | $51.05 | $35.30 | ||
ILFC | |||||
Basis of Presentation [Line Items] | |||||
Percentage of common stock agreed to be sold | 100.00% | ||||
Maximum | |||||
Basis of Presentation [Line Items] | |||||
Percentage ownership of voting rights of a variable interest entities | 50.00% | ||||
Minimum | |||||
Basis of Presentation [Line Items] | |||||
Number of Countries in which the entity operates | 100 | ||||
ILFC | |||||
Basis of Presentation [Line Items] | |||||
Consideration in cash | $7.60 | ||||
Percentage of common stock held after closing of transaction | 100.00% | ||||
AerCap | |||||
Basis of Presentation [Line Items] | |||||
Closing price per share (in dollars per share) | $47.01 | ||||
Number of shares received | 97.6 | ||||
AerCap | ILFC | |||||
Basis of Presentation [Line Items] | |||||
Percentage of common stock held after closing of transaction | 46.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other significant accounting policies) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Significant Accounting Policies [Line Items] | |||
Earning pattern of a quota share reinsurance contract | 24 months | ||
Other income | |||
Proceeds from legal settlements | $804 | $1,200 | $200 |
Premiums and other receivables | |||
Allowance for doubtful accounts on premiums and other receivables | $428 | $554 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other Assets and PPE) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other assets | |||
Deferred bonus interest and deferred sales inducement assets | $629 | $703 | |
Amortization expense associated with deferred bonus interest and deferred sales inducement assets | $63 | $102 | $162 |
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 40 years | ||
Furniture and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Software Development | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years |
SEGMENT_INFORMATION_Details_Co
SEGMENT INFORMATION (Details - Continuing operations by reportable segment) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Total Revenues | $64,406 | $68,874 | $71,214 |
Net investment income | 16,079 | 15,810 | 20,343 |
Interest Expense | 1,718 | 2,142 | 2,319 |
Depreciation and Amortization | 4,448 | 4,713 | 7,349 |
Pre-tax Income (loss) from continuing operations | 10,501 | 9,368 | 2,891 |
Operating segments | Commercial Insurance | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 28,801 | 28,862 | 28,286 |
Net investment income | 6,393 | 6,653 | 6,163 |
Interest Expense | 7 | 9 | 6 |
Depreciation and Amortization | 2,286 | 2,283 | 2,740 |
Pre-tax Income (loss) from continuing operations | 5,510 | 4,980 | 2,215 |
Operating segments | Consumer Insurance | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 28,469 | 28,660 | 28,746 |
Net investment income | 9,082 | 9,352 | 9,262 |
Interest Expense | 32 | 10 | 4 |
Depreciation and Amortization | 1,966 | 2,159 | 2,374 |
Pre-tax Income (loss) from continuing operations | 4,474 | 4,564 | 3,736 |
Reportable Segments | Property Casualty | Commercial Insurance | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 25,183 | 25,108 | 24,799 |
Net investment income | 4,298 | 4,431 | 3,951 |
Interest Expense | 0 | 8 | 6 |
Depreciation and Amortization | 2,445 | 2,393 | 2,736 |
Pre-tax Income (loss) from continuing operations | 4,248 | 4,095 | 1,681 |
Reportable Segments | Institutional Markets | Commercial Insurance | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 1,042 | 941 | 861 |
Net investment income | 138 | 132 | 146 |
Interest Expense | 0 | 0 | 0 |
Depreciation and Amortization | 56 | 50 | 44 |
Pre-tax Income (loss) from continuing operations | 592 | 205 | 9 |
Reportable Segments | Mortgage Guaranty | Commercial Insurance | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 2,576 | 2,813 | 2,626 |
Net investment income | 1,957 | 2,090 | 2,066 |
Interest Expense | 7 | 1 | 0 |
Depreciation and Amortization | -215 | -160 | -40 |
Pre-tax Income (loss) from continuing operations | 670 | 680 | 525 |
Reportable Segments | Retirement | Consumer Insurance | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 9,784 | 9,431 | 8,709 |
Net investment income | 6,489 | 6,628 | 6,502 |
Interest Expense | 23 | 3 | 0 |
Depreciation and Amortization | -231 | -165 | 1 |
Pre-tax Income (loss) from continuing operations | 3,495 | 3,490 | 2,801 |
Reportable Segments | Life | Consumer Insurance | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 6,321 | 6,397 | 6,457 |
Net investment income | 2,199 | 2,269 | 2,283 |
Interest Expense | 7 | 4 | 4 |
Depreciation and Amortization | 130 | 214 | 267 |
Pre-tax Income (loss) from continuing operations | 580 | 806 | 736 |
Reportable Segments | Personal Insurance | Consumer Insurance | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 12,364 | 12,832 | 13,580 |
Net investment income | 394 | 455 | 477 |
Interest Expense | 2 | 3 | 0 |
Depreciation and Amortization | 2,067 | 2,110 | 2,106 |
Pre-tax Income (loss) from continuing operations | 399 | 268 | 199 |
Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 4,197 | 4,019 | 8,936 |
Net investment income | 700 | 309 | 5,416 |
Interest Expense | 1,805 | 2,451 | 2,606 |
Depreciation and Amortization | 346 | 221 | 195 |
Pre-tax Income (loss) from continuing operations | -388 | -319 | 4,005 |
Corporate and Other | Global Capital Markets | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 1,479 | 1,825 | 1,607 |
Net investment income | 0 | 0 | 0 |
Interest Expense | 218 | 353 | 369 |
Depreciation and Amortization | -40 | -80 | -121 |
Pre-tax Income (loss) from continuing operations | 1,241 | 1,448 | 1,215 |
Corporate and Other | Direct Investment book | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 474 | 833 | 749 |
Net investment income | 0 | 0 | 0 |
Interest Expense | 0 | 0 | 0 |
Depreciation and Amortization | 0 | 0 | 0 |
Pre-tax Income (loss) from continuing operations | 359 | 625 | 557 |
Corporate and Other | AIG Parent and other | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 2,960 | 1,908 | 4,957 |
Net investment income | 700 | 309 | 4,957 |
Interest Expense | 1,598 | 2,112 | 0 |
Depreciation and Amortization | 386 | 301 | 0 |
Pre-tax Income (loss) from continuing operations | -1,989 | -2,396 | 4,957 |
Corporate and Other | Retained Interests | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 2,028 | ||
Net investment income | 459 | ||
Interest Expense | 2,264 | ||
Depreciation and Amortization | 316 | ||
Pre-tax Income (loss) from continuing operations | -2,724 | ||
Corporate and Other | Aircraft Leasing | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Interest Expense | 0 | 0 | 0 |
Depreciation and Amortization | 0 | 0 | 0 |
Pre-tax Income (loss) from continuing operations | 0 | 0 | 0 |
Corporate and Other | Consolidation and elimination | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | -716 | -547 | -405 |
Net investment income | 0 | 0 | 0 |
Interest Expense | -11 | -14 | -27 |
Depreciation and Amortization | 0 | 0 | 0 |
Pre-tax Income (loss) from continuing operations | 1 | 4 | 0 |
Corporate and Other | Commercial Insurance | Retained Interests | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 2,028 | ||
Net investment income | 459 | ||
Interest Expense | 2,264 | ||
Depreciation and Amortization | 316 | ||
Pre-tax Income (loss) from continuing operations | -2,724 | ||
Consolidation and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | -466 | -17 | -589 |
Net investment income | -356 | -343 | -535 |
Interest Expense | -126 | -328 | -297 |
Depreciation and Amortization | -181 | -26 | -2 |
Pre-tax Income (loss) from continuing operations | -22 | 165 | -18 |
Total Operating Segments Corporate And Other Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 61,001 | 61,524 | 65,379 |
Net investment income | 15,819 | 15,971 | 20,306 |
Interest Expense | 1,718 | 2,142 | 2,319 |
Depreciation and Amortization | 4,417 | 4,637 | 5,307 |
Pre-tax Income (loss) from continuing operations | $9,574 | $9,390 | $9,938 |
SEGMENT_INFORMATION_Details_Co1
SEGMENT INFORMATION (Details - Continuing operations by reportable segment - Pretax operating income to pre-tax income)) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Total Revenues | $64,406 | $68,874 | $71,214 |
Net investment income | 16,079 | 15,810 | 20,343 |
Interest Expense | 1,718 | 2,142 | 2,319 |
Depreciation and other amortization | 4,448 | 4,713 | 7,349 |
Pre-tax Income (loss) from continuing operations | 10,501 | 9,368 | 2,891 |
Changes in fair values of fixed maturity securities designated to hedge living benefit liabilities, net of interest expense | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 260 | -161 | 37 |
Net investment income | 260 | -161 | 37 |
Interest Expense | 0 | 0 | 0 |
Depreciation and other amortization | 0 | 0 | 0 |
Pre-tax Income (loss) from continuing operations | 260 | -161 | 37 |
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Interest Expense | 0 | 0 | 0 |
Depreciation and other amortization | 0 | 0 | 0 |
Pre-tax Income (loss) from continuing operations | -217 | -1,608 | -1,213 |
Loss on extinguishment of debt | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Interest Expense | 0 | 0 | 0 |
Depreciation and other amortization | 0 | 0 | 0 |
Pre-tax Income (loss) from continuing operations | -2,282 | -72 | 0 |
Other income (expense) - net | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Interest Expense | 0 | 0 | 0 |
Depreciation and other amortization | 0 | 0 | 0 |
Pre-tax Income (loss) from continuing operations | 0 | -651 | -32 |
Net realized capital gains (losses) | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 739 | 1,939 | 1,086 |
Net investment income | 0 | 0 | 0 |
Interest Expense | 0 | 0 | 0 |
Depreciation and other amortization | 0 | 0 | 0 |
Pre-tax Income (loss) from continuing operations | 739 | 1,939 | 1,086 |
(Loss) Income from divested businesses | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 1,602 | 4,420 | 4,502 |
Net investment income | 0 | 0 | 0 |
Interest Expense | 0 | 0 | 0 |
Depreciation and other amortization | 31 | 76 | 2,042 |
Pre-tax Income (loss) from continuing operations | 2,169 | -177 | -6,411 |
Legal settlements related to legacy crisis matters | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 804 | 1,152 | 210 |
Net investment income | 0 | 0 | 0 |
Interest Expense | 0 | 0 | 0 |
Depreciation and other amortization | 0 | 0 | 0 |
Pre-tax Income (loss) from continuing operations | 804 | 1,152 | 210 |
Legal reserves related to legacy crisis matters | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 |
Interest Expense | 0 | 0 | 0 |
Depreciation and other amortization | 0 | 0 | 0 |
Pre-tax Income (loss) from continuing operations | -546 | -444 | -754 |
Non-qualifying derivative hedging gains, excluding net RCG | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 0 | ||
Net investment income | 0 | ||
Interest Expense | 0 | ||
Depreciation and other amortization | 0 | ||
Pre-tax Income (loss) from continuing operations | $30 |
SEGMENT_INFORMATION_Details_Id
SEGMENT INFORMATION (Details - Identifiable assets and capital expenditures by reportable segment) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | $515,581 | $541,329 |
Capital Expenditures | 1,832 | 2,732 |
Operating segments | Non-life insurance companies | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 164,299 | 168,738 |
Capital Expenditures | 697 | 370 |
Operating segments | Life insurance companies | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 301,295 | 287,464 |
Capital Expenditures | 114 | 66 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 159,394 | 191,561 |
Capital Expenditures | 1,021 | 2,296 |
Corporate and Other | Global Capital Markets | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 3,270 | 6,406 |
Capital Expenditures | 0 | 0 |
Corporate and Other | Direct Investment book | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 15,263 | 23,541 |
Capital Expenditures | 0 | 0 |
Corporate and Other | AIG Parent and other | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 91,277 | 88,270 |
Capital Expenditures | 523 | 413 |
Corporate and Other | Aircraft Leasing | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 0 | 39,313 |
Capital Expenditures | 498 | 1,883 |
Corporate and Other | Consolidation and elimination | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 49,584 | 34,031 |
Capital Expenditures | 0 | 0 |
Consolidation and Eliminations | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | -109,407 | -106,434 |
Capital Expenditures | $0 | $0 |
SEGMENT_INFORMATION_Details_Co2
SEGMENT INFORMATION (Details - Consolidated operations and long-lived assets by major geographic area) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $64,406 | $68,874 | $71,214 |
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 2,700 | 2,315 | 2,213 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 44,274 | 46,078 | 47,406 |
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 1,886 | 1,606 | 1,391 |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 7,523 | 8,804 | 9,498 |
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 521 | 448 | 516 |
Other Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 12,609 | 13,992 | 14,310 |
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | $293 | $261 | $306 |
HELDFORSALE_CLASSIFICATION_DIV2
HELD-FOR-SALE CLASSIFICATION, DIVESTED BUSINESSES AND DISCONTINUED OPERATIONS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Assets: | ||||
Equity securities | $4,395 | $3,656 | ||
Short-term investments | 11,243 | 21,617 | ||
Cash | 1,758 | 2,241 | 1,151 | 1,474 |
Premiums and other receivables, net of allowance | 12,031 | 12,939 | ||
Other assets | 10,549 | 9,366 | ||
Total assets held for sale | 0 | 29,536 | ||
Liabilities: | ||||
Other liabilities | 24,168 | 29,155 | ||
Long-term debt | 31,217 | 41,693 | ||
Total liabilities held for sale | 0 | 24,548 | ||
Assets held-for-sale | ||||
Assets: | ||||
Equity securities | 3 | |||
Mortgage and other loans receivable, net | 229 | |||
Flight equipment primarily under operating leases, net of accumulated depreciation | 35,508 | |||
Short-term investments | 658 | |||
Cash | 88 | |||
Premiums and other receivables, net of allowance | 318 | |||
Other assets | 2,066 | |||
Assets held for sale | 38,870 | |||
Less: Loss Accrual | -9,334 | |||
Total assets held for sale | 29,536 | |||
Liabilities: | ||||
Other liabilities | 3,127 | |||
Long-term debt | 21,421 | |||
Total liabilities held for sale | $24,548 |
HELDFORSALE_CLASSIFICATION_DIV3
HELD-FOR-SALE CLASSIFICATION, DIVESTED BUSINESSES AND DISCONTINUED OPERATIONS (Details - International Lease Finance Corporation) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | 14-May-14 | Dec. 31, 2013 | Dec. 31, 2012 | 13-May-14 |
International Lease Finance Corporation | |||||
Closing price per share (in dollars per share) | $56.01 | $51.05 | $35.30 | ||
Proceeds from divested businesses, net | $2,348,000,000 | ||||
AerCap | |||||
International Lease Finance Corporation | |||||
Number of shares received | 97.6 | ||||
Aggregate stated value of consideration | 4,600,000,000 | ||||
Closing price per share (in dollars per share) | $47.01 | ||||
Aggregate commitment under revolving credit facility | 1,000,000,000 | ||||
Difference between carrying amount and equity AerCap | 1,400,000,000 | ||||
Difference between carrying amount and equity of AerCap amortized into income based on estimated lives of assets and liabilities | 400,000,000 | ||||
International Lease Finance Corporation (ILFC) | |||||
International Lease Finance Corporation | |||||
Consideration in cash | 7,600,000,000 | ||||
Percentage of common stock held after closing of transaction | 100.00% | ||||
International Lease Finance Corporation (ILFC) | |||||
International Lease Finance Corporation | |||||
Percentage of common stock agreed to be sold | 100.00% | ||||
Proceeds from divested businesses, net | 2,400,000,000 | ||||
Pre-tax gain (loss) on discontinued operations | 2,200,000,000 | ||||
After-tax gain on sale of business | 1,400,000,000 | ||||
International Lease Finance Corporation (ILFC) | AerCap | |||||
International Lease Finance Corporation | |||||
Percentage of common stock held after closing of transaction | 46.00% | ||||
ALICO | MetLife Inc. (MetLife) | |||||
International Lease Finance Corporation | |||||
Pre-tax gain (loss) on discontinued operations | $23,000,000 | $150,000,000 | $1,000,000 |
HELDFORSALE_CLASSIFICATION_DIV4
HELD-FOR-SALE CLASSIFICATION, DIVESTED BUSINESSES AND DISCONTINUED OPERATIONS (Details - Income (loss) from divested businesses or discontinued operations) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income (loss) from divested businesses or discontinued operations: | |||||||||||
Income (loss) from discontinued operations | ($35) | $2 | $30 | ($47) | $11 | ($18) | $18 | $73 | ($50) | $84 | $1 |
ALICO [Member] | Met Life Inc [Member] | |||||||||||
Income (loss) from divested businesses or discontinued operations: | |||||||||||
Gain (loss) on sale | 23 | 150 | 1 | ||||||||
Income (loss) from discontinued operations, before tax expense (benefit) | 23 | 150 | 1 | ||||||||
Income tax expense (benefit) | 73 | 66 | 0 | ||||||||
Income (loss) from discontinued operations | ($50) | $84 | $1 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details - Super Senior Credit Default Swap Portfolio) (Borrowings supported by assets, GIAs) | 12 Months Ended |
Dec. 31, 2014 | |
Borrowings supported by assets | GIAs | |
Debt Instrument [Line Items] | |
Range of guaranteed minimum return rates (as a percent) | 8.50% |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | $259,859 | $258,274 |
Other bond securities, at fair value | 19,712 | 22,623 |
Equity securities available for sale | 4,395 | 3,656 |
Other equity securities | 1,049 | 834 |
Derivative assets, at fair value | 1,604 | 1,665 |
Separate account assets, at fair value | 80,036 | 71,059 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Other Policyholder contract deposits, portion measured at fair value | 8 | |
Derivative liabilities, at fair value | 2,273 | 2,511 |
Long-term debt, portion measured at fair value | 5,466 | 6,747 |
Recurring Basis | U.S. government and government sponsored entities | ||
Fair Value, Liabilities Measured on Recurring Basis | ||
Assets transferred from Level 1 to Level 2 | 107 | 356 |
Recurring Basis | Non-U.S. government | ||
Fair Value, Liabilities Measured on Recurring Basis | ||
Assets transferred from Level 2 to Level 1 | 590 | 944 |
Recurring Basis | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 1,064 | 641 |
Other bond securities, at fair value | 130 | 78 |
Equity securities available for sale | 4,389 | 3,626 |
Other equity securities | 1,024 | 750 |
Other invested assets | 2 | 1 |
Derivative assets, at fair value | 100 | 165 |
Short-term investments, portion measured at fair value | 584 | 332 |
Separate account assets, at fair value | 73,939 | 67,708 |
Fair value assets measured on recurring basis, total | 81,232 | 73,301 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Other Policyholder contract deposits, portion measured at fair value | 0 | |
Other liabilities | 34 | 42 |
Fair value liabilities measured on recurring basis, total | 34 | 42 |
Recurring Basis | Level 1 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 2 | 14 |
Recurring Basis | Level 1 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 98 | 151 |
Recurring Basis | Level 1 | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 322 | 133 |
Other bond securities, at fair value | 130 | 78 |
Recurring Basis | Level 1 | Non-U.S. government | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 742 | 508 |
Recurring Basis | Level 1 | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 3,626 | 3,218 |
Recurring Basis | Level 1 | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 25 | |
Recurring Basis | Level 1 | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 738 | 408 |
Recurring Basis | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 229,112 | 227,632 |
Other bond securities, at fair value | 10,659 | 11,930 |
Equity securities available for sale | 5 | 29 |
Other equity securities | 25 | 84 |
Other invested assets | 3,742 | 2,667 |
Derivative assets, at fair value | 4,626 | 3,875 |
Short-term investments, portion measured at fair value | 1,100 | 5,981 |
Separate account assets, at fair value | 6,097 | 3,351 |
Other assets | 418 | |
Fair value assets measured on recurring basis, total | 255,366 | 255,967 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 52 | 72 |
Other Policyholder contract deposits, portion measured at fair value | 8 | |
Derivative liabilities, at fair value | 4,633 | 4,111 |
Long-term debt, portion measured at fair value | 5,253 | 6,377 |
Other liabilities | 316 | 891 |
Fair value liabilities measured on recurring basis, total | 10,262 | 11,451 |
Recurring Basis | Level 2 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 3,729 | 3,716 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 3,047 | 3,661 |
Recurring Basis | Level 2 | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 839 | 52 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 1,482 | 319 |
Recurring Basis | Level 2 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 58 | 106 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 98 | 101 |
Recurring Basis | Level 2 | Commodity contracts | ||
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 6 | 5 |
Recurring Basis | Level 2 | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 1 | |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 25 | |
Recurring Basis | Level 2 | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 2,670 | 3,062 |
Other bond securities, at fair value | 5,368 | 5,645 |
Recurring Basis | Level 2 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 25,500 | 28,300 |
Other bond securities, at fair value | 122 | 121 |
Recurring Basis | Level 2 | Non-U.S. government | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 20,323 | 21,985 |
Other bond securities, at fair value | 2 | 2 |
Recurring Basis | Level 2 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 142,550 | 143,297 |
Other bond securities, at fair value | 719 | 1,169 |
Recurring Basis | Level 2 | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 20,715 | 21,207 |
Other bond securities, at fair value | 989 | 1,326 |
Recurring Basis | Level 2 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 10,189 | 5,747 |
Other bond securities, at fair value | 708 | 509 |
Recurring Basis | Level 2 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 7,165 | 4,034 |
Other bond securities, at fair value | 2,751 | 3,158 |
Recurring Basis | Level 2 | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 2 | |
Recurring Basis | Level 2 | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 27 | |
Recurring Basis | Level 2 | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 3 | 2 |
Recurring Basis | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 29,683 | 30,001 |
Other bond securities, at fair value | 8,923 | 10,615 |
Equity securities available for sale | 1 | 1 |
Mortgage and other loans receivable | 6 | |
Other invested assets | 5,650 | 5,930 |
Derivative assets, at fair value | 99 | 179 |
Fair value assets measured on recurring basis, total | 44,362 | 46,726 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 1,509 | 312 |
Other Policyholder contract deposits, portion measured at fair value | 0 | |
Derivative liabilities, at fair value | 1,171 | 1,618 |
Long-term debt, portion measured at fair value | 213 | 370 |
Fair value liabilities measured on recurring basis, total | 2,893 | 2,300 |
Recurring Basis | Level 3 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 12 | 41 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 86 | 141 |
Recurring Basis | Level 3 | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 1 | |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 9 | |
Recurring Basis | Level 3 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 51 | 49 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 4 | |
Recurring Basis | Level 3 | Commodity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 1 | |
Recurring Basis | Level 3 | Credit contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 4 | 55 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 982 | 1,335 |
Recurring Basis | Level 3 | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 31 | 33 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 90 | 142 |
Recurring Basis | Level 3 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 2,159 | 1,080 |
Recurring Basis | Level 3 | Non-U.S. government | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 30 | 16 |
Recurring Basis | Level 3 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 1,883 | 1,255 |
Recurring Basis | Level 3 | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 16,805 | 14,941 |
Other bond securities, at fair value | 1,105 | 937 |
Recurring Basis | Level 3 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 2,696 | 5,735 |
Other bond securities, at fair value | 369 | 844 |
Recurring Basis | Level 3 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 6,110 | 6,974 |
Other bond securities, at fair value | 7,449 | 8,834 |
Recurring Basis | Level 3 | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 1 | 1 |
Recurring Basis | Counterparty Netting | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | -2,102 | -1,734 |
Fair value assets measured on recurring basis, total | -2,102 | -1,734 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Other Policyholder contract deposits, portion measured at fair value | 0 | |
Derivative liabilities, at fair value | -2,102 | -1,734 |
Fair value liabilities measured on recurring basis, total | -2,102 | -1,734 |
Recurring Basis | Counterparty Netting | Counterparty netting and cash collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | -2,102 | -1,734 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | -2,102 | -1,734 |
Recurring Basis | Cash Collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | -1,119 | -820 |
Fair value assets measured on recurring basis, total | -1,119 | -820 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Other Policyholder contract deposits, portion measured at fair value | 0 | |
Derivative liabilities, at fair value | -1,429 | -1,484 |
Fair value liabilities measured on recurring basis, total | -1,429 | -1,484 |
Recurring Basis | Cash Collateral | Counterparty netting and cash collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | -1,119 | -820 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | -1,429 | -1,484 |
Recurring Basis | Total Fair Value | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 259,859 | 258,274 |
Other bond securities, at fair value | 19,712 | 22,623 |
Equity securities available for sale | 4,395 | 3,656 |
Other equity securities | 1,049 | 834 |
Mortgage and other loans receivable | 6 | |
Other invested assets | 9,394 | 8,598 |
Derivative assets, at fair value | 1,604 | 1,665 |
Short-term investments, portion measured at fair value | 1,684 | 6,313 |
Separate account assets, at fair value | 80,036 | 71,059 |
Other assets | 418 | |
Fair value assets measured on recurring basis, total | 377,739 | 373,440 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 1,561 | 384 |
Other Policyholder contract deposits, portion measured at fair value | 8 | |
Derivative liabilities, at fair value | 2,273 | 2,511 |
Long-term debt, portion measured at fair value | 5,466 | 6,747 |
Other liabilities | 350 | 933 |
Fair value liabilities measured on recurring basis, total | 9,658 | 10,575 |
Recurring Basis | Total Fair Value | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 3,743 | 3,771 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 3,133 | 3,802 |
Recurring Basis | Total Fair Value | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 840 | 52 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 1,491 | 319 |
Recurring Basis | Total Fair Value | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 207 | 306 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 102 | 101 |
Recurring Basis | Total Fair Value | Commodity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 1 | |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 6 | 5 |
Recurring Basis | Total Fair Value | Credit contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 4 | 55 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 982 | 1,335 |
Recurring Basis | Total Fair Value | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | 31 | 34 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | 90 | 167 |
Recurring Basis | Total Fair Value | Counterparty netting and cash collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, at fair value | -3,221 | -2,554 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, at fair value | -3,531 | -3,218 |
Recurring Basis | Total Fair Value | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 2,992 | 3,195 |
Other bond securities, at fair value | 5,498 | 5,723 |
Recurring Basis | Total Fair Value | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 27,659 | 29,380 |
Other bond securities, at fair value | 122 | 121 |
Recurring Basis | Total Fair Value | Non-U.S. government | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 21,095 | 22,509 |
Other bond securities, at fair value | 2 | 2 |
Recurring Basis | Total Fair Value | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 144,433 | 144,552 |
Other bond securities, at fair value | 719 | 1,169 |
Recurring Basis | Total Fair Value | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 37,520 | 36,148 |
Other bond securities, at fair value | 2,094 | 2,263 |
Recurring Basis | Total Fair Value | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 12,885 | 11,482 |
Other bond securities, at fair value | 1,077 | 1,353 |
Recurring Basis | Total Fair Value | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 13,275 | 11,008 |
Other bond securities, at fair value | 10,200 | 11,992 |
Recurring Basis | Total Fair Value | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 3,629 | 3,219 |
Recurring Basis | Total Fair Value | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 25 | 27 |
Recurring Basis | Total Fair Value | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | $741 | $410 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | $46,547 | $39,353 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 2,462 | 2,964 | |
Other Comprehensive Income (Loss) | 907 | 612 | |
Purchases, Sales, Issues and Settlements, Net | 1,165 | 2,328 | |
Gross Transfers in, assets | 4,797 | 3,432 | |
Gross Transfers out, assets | 11,615 | 2,142 | |
Balance End of Period | 44,263 | 46,547 | |
Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 298 | 708 | |
Liabilities | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance at the Beginning of the Period | -2,121 | -2,974 | |
Net Realized and Unrealized Gains (Losses) Included in Income | -659 | 1,309 | |
Accumulated Other Comprehensive Income (loss) | -1 | 14 | |
Purchases, Sales, Issues and Settlements-Net | -32 | -489 | |
Gross Transfers in, liabilities | 21 | 3 | |
Gross Transfers out, liabilities | 40 | 22 | |
Balance at the End of the Period | -2,794 | -2,121 | |
Liabilities | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 152 | 856 | |
Policyholder contract deposits | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance at the Beginning of the Period | -312 | -1,257 | |
Net Realized and Unrealized Gains (Losses) Included in Income | -1,127 | 744 | |
Accumulated Other Comprehensive Income (loss) | -54 | -1 | |
Purchases, Sales, Issues and Settlements-Net | -16 | 202 | |
Balance at the End of the Period | -1,509 | -312 | |
Policyholder contract deposits | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | -218 | 104 | |
Derivative liabilities, net | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance at the Beginning of the Period | -1,439 | -1,373 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 374 | 702 | |
Accumulated Other Comprehensive Income (loss) | 53 | 15 | |
Purchases, Sales, Issues and Settlements-Net | -53 | -729 | |
Gross Transfers in, liabilities | -49 | 1 | |
Gross Transfers out, liabilities | -56 | -53 | |
Balance at the End of the Period | -1,072 | -1,439 | |
Derivative liabilities, net | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 355 | 782 | |
Interest rate contracts | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance at the Beginning of the Period | -100 | 732 | |
Net Realized and Unrealized Gains (Losses) Included in Income | -10 | 19 | |
Purchases, Sales, Issues and Settlements-Net | 39 | -851 | |
Gross Transfers out, liabilities | -3 | ||
Balance at the End of the Period | -74 | -100 | |
Interest rate contracts | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | -10 | 35 | |
Foreign exchange contracts | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Net Realized and Unrealized Gains (Losses) Included in Income | 2 | ||
Purchases, Sales, Issues and Settlements-Net | -10 | ||
Balance at the End of the Period | -8 | ||
Foreign exchange contracts | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 3 | ||
Equity contracts | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance at the Beginning of the Period | 49 | 47 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 21 | 74 | |
Purchases, Sales, Issues and Settlements-Net | -18 | -20 | |
Gross Transfers in, liabilities | -48 | -1 | |
Gross Transfers out, liabilities | -53 | -53 | |
Balance at the End of the Period | 47 | 49 | |
Equity contracts | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 13 | 30 | |
Commodity contracts | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance at the Beginning of the Period | 1 | 1 | |
Net Realized and Unrealized Gains (Losses) Included in Income | -1 | ||
Balance at the End of the Period | 1 | ||
Commodity contracts | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | -1 | -1 | |
Credit contracts | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance at the Beginning of the Period | -1,280 | -1,991 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 263 | 567 | |
Purchases, Sales, Issues and Settlements-Net | 39 | 144 | |
Balance at the End of the Period | -978 | -1,280 | |
Credit contracts | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 268 | 711 | |
Other contracts | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance at the Beginning of the Period | -109 | -162 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 99 | 42 | |
Accumulated Other Comprehensive Income (loss) | 53 | 15 | |
Purchases, Sales, Issues and Settlements-Net | -103 | -2 | |
Gross Transfers in, liabilities | -1 | 2 | |
Balance at the End of the Period | -59 | -109 | |
Other contracts | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 82 | 7 | |
Long-term debt | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance at the Beginning of the Period | -370 | -344 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 94 | -137 | |
Purchases, Sales, Issues and Settlements-Net | 37 | 38 | |
Gross Transfers in, liabilities | 70 | 2 | |
Gross Transfers out, liabilities | 96 | 75 | |
Balance at the End of the Period | -213 | -370 | |
Long-term debt | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 15 | -30 | |
Bonds available for sale | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 30,001 | 24,152 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 1,180 | 1,089 | |
Other Comprehensive Income (Loss) | 509 | 380 | |
Purchases, Sales, Issues and Settlements, Net | 3,092 | 4,369 | |
Gross Transfers in, assets | 4,181 | 1,699 | |
Gross Transfers out, assets | 9,280 | 1,688 | |
Balance End of Period | 29,683 | 30,001 | |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 1,080 | 1,024 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 29 | ||
Other Comprehensive Income (Loss) | 233 | -175 | |
Purchases, Sales, Issues and Settlements, Net | 914 | 403 | |
Gross Transfers in, assets | 119 | ||
Gross Transfers out, assets | 187 | 201 | |
Balance End of Period | 2,159 | 1,080 | |
Bonds available for sale | Non-U.S. government | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 16 | 14 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 1 | ||
Other Comprehensive Income (Loss) | -1 | -1 | |
Purchases, Sales, Issues and Settlements, Net | 9 | 3 | |
Gross Transfers in, assets | 8 | 1 | |
Gross Transfers out, assets | 3 | 1 | |
Balance End of Period | 30 | 16 | |
Bonds available for sale | Corporate debt | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 1,255 | 1,487 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 12 | 8 | |
Other Comprehensive Income (Loss) | 19 | -19 | |
Purchases, Sales, Issues and Settlements, Net | -257 | -176 | |
Gross Transfers in, assets | 1,363 | 450 | |
Gross Transfers out, assets | 509 | 495 | |
Balance End of Period | 1,883 | 1,255 | |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 14,941 | 11,662 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 1,012 | 867 | |
Other Comprehensive Income (Loss) | 53 | 466 | |
Purchases, Sales, Issues and Settlements, Net | 796 | 1,818 | |
Gross Transfers in, assets | 120 | 186 | |
Gross Transfers out, assets | 117 | 58 | |
Balance End of Period | 16,805 | 14,941 | |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 5,735 | 5,124 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 69 | 24 | |
Other Comprehensive Income (Loss) | 243 | 100 | |
Purchases, Sales, Issues and Settlements, Net | 85 | 375 | |
Gross Transfers in, assets | 83 | 161 | |
Gross Transfers out, assets | 3,519 | 49 | |
Balance End of Period | 2,696 | 5,735 | |
Bonds available for sale | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 6,974 | 4,841 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 86 | 161 | |
Other Comprehensive Income (Loss) | -38 | 9 | |
Purchases, Sales, Issues and Settlements, Net | 1,545 | 1,946 | |
Gross Transfers in, assets | 2,488 | 901 | |
Gross Transfers out, assets | 4,945 | 884 | |
Balance End of Period | 6,110 | 6,974 | |
Other bond securities | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 10,615 | 9,744 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 1,132 | 1,660 | |
Purchases, Sales, Issues and Settlements, Net | -1,849 | -2,036 | |
Gross Transfers in, assets | 446 | 1,389 | |
Gross Transfers out, assets | 1,421 | 142 | |
Balance End of Period | 8,923 | 10,615 | |
Other bond securities | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 298 | 708 | |
Other bond securities | Residential mortgage-backed securities (RMBS) | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 937 | 396 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 40 | 66 | |
Purchases, Sales, Issues and Settlements, Net | 97 | 208 | |
Gross Transfers in, assets | 51 | 267 | |
Gross Transfers out, assets | 20 | ||
Balance End of Period | 1,105 | 937 | |
Other bond securities | Residential mortgage-backed securities (RMBS) | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | -13 | -2 | |
Other bond securities | Commercial mortgage-backed securities (CMBS) | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 844 | 812 | |
Net Realized and Unrealized Gains (Losses) Included in Income | -6 | 67 | |
Purchases, Sales, Issues and Settlements, Net | -141 | -200 | |
Gross Transfers in, assets | 124 | 279 | |
Gross Transfers out, assets | 452 | 114 | |
Balance End of Period | 369 | 844 | |
Other bond securities | Commercial mortgage-backed securities (CMBS) | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | -7 | 29 | |
Other bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 8,834 | 8,536 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 1,098 | 1,527 | |
Purchases, Sales, Issues and Settlements, Net | -1,805 | -2,044 | |
Gross Transfers in, assets | 271 | 843 | |
Gross Transfers out, assets | 949 | 28 | |
Balance End of Period | 7,449 | 8,834 | |
Other bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | Trading Revenue | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 318 | 681 | |
Equity securities available for sale | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 1 | 68 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 7 | ||
Other Comprehensive Income (Loss) | -5 | ||
Purchases, Sales, Issues and Settlements, Net | -1 | -69 | |
Gross Transfers in, assets | 3 | ||
Gross Transfers out, assets | 2 | ||
Balance End of Period | 1 | 1 | |
Equity securities available for sale | Common Stock | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 1 | 24 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 7 | ||
Other Comprehensive Income (Loss) | -8 | ||
Purchases, Sales, Issues and Settlements, Net | -1 | -22 | |
Gross Transfers in, assets | 2 | ||
Gross Transfers out, assets | 1 | ||
Balance End of Period | 1 | 1 | |
Equity securities available for sale | Preferred Stock | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 44 | ||
Other Comprehensive Income (Loss) | 3 | ||
Purchases, Sales, Issues and Settlements, Net | -47 | ||
Equity securities available for sale | Mutual Funds | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Gross Transfers in, assets | 1 | ||
Gross Transfers out, assets | 1 | ||
Other invested assets | |||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | |||
Balance Beginning of Period | 5,930 | 5,389 | |
Net Realized and Unrealized Gains (Losses) Included in Income | 150 | 208 | |
Other Comprehensive Income (Loss) | 398 | 237 | |
Purchases, Sales, Issues and Settlements, Net | -83 | 64 | |
Gross Transfers in, assets | 167 | 344 | |
Gross Transfers out, assets | 912 | 312 | |
Balance End of Period | $5,650 | $5,930 |
FAIR_VALUE_MEASUREMENTS_Detail3
FAIR VALUE MEASUREMENTS (Details - Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | $2,462 | $2,964 |
Policyholder contract deposits | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | -1,127 | 744 |
Policyholder contract deposits | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 |
Policyholder contract deposits | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | -1,127 | 744 |
Policyholder contract deposits | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 |
Derivative liabilities, net | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 374 | 702 |
Derivative liabilities, net | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 68 | 39 |
Derivative liabilities, net | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 8 | 43 |
Derivative liabilities, net | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 298 | 620 |
Long-term debt | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 94 | -137 |
Long-term debt | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 |
Long-term debt | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 |
Long-term debt | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 94 | -137 |
Bonds available for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 1,180 | 1,089 |
Bonds available for sale | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 1,236 | 997 |
Bonds available for sale | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | -107 | -17 |
Bonds available for sale | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 51 | 109 |
Other bond securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 1,132 | 1,660 |
Other bond securities | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 95 | 187 |
Other bond securities | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 9 |
Other bond securities | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 1,037 | 1,464 |
Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 7 | |
Equity securities | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 0 |
Equity securities | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 7 |
Equity securities | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 0 |
Other invested assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 150 | 208 |
Other invested assets | Investment Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 175 | 210 |
Other invested assets | Net realized capital gains (losses) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | -28 | -42 |
Other invested assets | Other Income | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | $3 | $40 |
FAIR_VALUE_MEASUREMENTS_Detail4
FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issues and settlements) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | $8,678 | $10,813 |
Sales, assets | -554 | -1,041 |
Settlements, assets | -6,959 | -7,444 |
Purchases, Sales, Issues and Settlements, Net, assets | 1,165 | 2,328 |
Issuances | 0 | 0 |
Transfers into Level 3 at end of reporting period, net gains (losses) not included in realized and unrealized gains and losses related to Level 3 for the period | 22 | -15 |
Transfers out Level 3 at end of reporting period, net gains (losses) not included in realized and unrealized gains and losses related to Level 3 for the period. | 62 | 44 |
Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 2 | 10 |
Sales, liabilities | -152 | -27 |
Settlements, liabilities | 118 | -472 |
Purchases, Sales, Issues and Settlements, Net, liabilities | -32 | -489 |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Sales, liabilities | -149 | -26 |
Settlements, liabilities | 133 | 228 |
Purchases, Sales, Issues and Settlements, Net, liabilities | -16 | 202 |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 2 | 10 |
Sales, liabilities | -3 | -1 |
Settlements, liabilities | -52 | -738 |
Purchases, Sales, Issues and Settlements, Net, liabilities | -53 | -729 |
Long-term debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Settlements, liabilities | 37 | 38 |
Purchases, Sales, Issues and Settlements, Net, liabilities | 37 | 38 |
Bonds available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 7,630 | 9,146 |
Sales, assets | -461 | -865 |
Settlements, assets | -4,077 | -3,912 |
Purchases, Sales, Issues and Settlements, Net, assets | 3,092 | 4,369 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1,041 | 541 |
Sales, assets | -35 | -138 |
Settlements, assets | -92 | |
Purchases, Sales, Issues and Settlements, Net, assets | 914 | 403 |
Bonds available for sale | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 12 | 9 |
Settlements, assets | -3 | -6 |
Purchases, Sales, Issues and Settlements, Net, assets | 9 | 3 |
Bonds available for sale | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 148 | 487 |
Sales, assets | -8 | -114 |
Settlements, assets | -397 | -549 |
Purchases, Sales, Issues and Settlements, Net, assets | -257 | -176 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 3,301 | 4,424 |
Sales, assets | -124 | -266 |
Settlements, assets | -2,381 | -2,340 |
Purchases, Sales, Issues and Settlements, Net, assets | 796 | 1,818 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 368 | 1,023 |
Sales, assets | -224 | -188 |
Settlements, assets | -59 | -460 |
Purchases, Sales, Issues and Settlements, Net, assets | 85 | 375 |
Bonds available for sale | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 2,760 | 2,662 |
Sales, assets | -70 | -159 |
Settlements, assets | -1,145 | -557 |
Purchases, Sales, Issues and Settlements, Net, assets | 1,545 | 1,946 |
Other bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 266 | 727 |
Sales, assets | -68 | -155 |
Settlements, assets | -2,047 | -2,608 |
Purchases, Sales, Issues and Settlements, Net, assets | -1,849 | -2,036 |
Other bond securities | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 211 | 350 |
Sales, assets | -31 | -12 |
Settlements, assets | -83 | -130 |
Purchases, Sales, Issues and Settlements, Net, assets | 97 | 208 |
Other bond securities | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 24 | |
Sales, assets | -16 | -71 |
Settlements, assets | -125 | -153 |
Purchases, Sales, Issues and Settlements, Net, assets | -141 | -200 |
Other bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 55 | 353 |
Sales, assets | -21 | -72 |
Settlements, assets | -1,839 | -2,325 |
Purchases, Sales, Issues and Settlements, Net, assets | -1,805 | -2,044 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 58 | |
Sales, assets | -12 | |
Settlements, assets | -1 | -115 |
Purchases, Sales, Issues and Settlements, Net, assets | -1 | -69 |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 776 | 882 |
Sales, assets | -25 | -9 |
Settlements, assets | -834 | -809 |
Purchases, Sales, Issues and Settlements, Net, assets | ($83) | $64 |
FAIR_VALUE_MEASUREMENTS_Detail5
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Assets)) (Level 3, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Corporate debt | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 1,145 | 788 |
Corporate debt | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.46% | 0.00% |
Corporate debt | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 8.75% | 14.29% |
Corporate debt | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 6.10% | 6.64% |
Residential mortgage-backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 17,353 | 14,419 |
Residential mortgage-backed securities | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 2.67% | 2.54% |
Constant prepayment rate | 0.59% | 0.00% |
Loss severity | 46.04% | 42.60% |
Constant default rate | 3.67% | 3.98% |
Residential mortgage-backed securities | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 6.64% | 7.40% |
Constant prepayment rate | 9.35% | 10.35% |
Loss severity | 79.56% | 79.07% |
Constant default rate | 9.96% | 12.22% |
Residential mortgage-backed securities | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.65% | 4.97% |
Constant prepayment rate | 4.97% | 4.97% |
Loss severity | 62.80% | 60.84% |
Constant default rate | 6.82% | 8.10% |
Certain CDO/ABS | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 5,282 | 5,414 |
Certain CDO/ABS | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.70% | 5.20% |
Constant prepayment rate | 6.40% | 5.20% |
Loss severity | 42.90% | 48.60% |
Constant default rate | 2.50% | 3.20% |
Certain CDO/ABS | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 9.70% | 11.50% |
Constant prepayment rate | 12.80% | 10.80% |
Loss severity | 60.30% | 63.40% |
Constant default rate | 14.70% | 16.20% |
Certain CDO/ABS | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 7.10% | 9.40% |
Constant prepayment rate | 9.20% | 8.20% |
Loss severity | 51.90% | 56.40% |
Constant default rate | 7.80% | 9.00% |
Commercial mortgage backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 2,687 | 5,847 |
Commercial mortgage backed securities | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 0.00% | 0.00% |
Commercial mortgage backed securities | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 17.29% | 14.69% |
Commercial mortgage backed securities | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 6.06% | 5.58% |
CDO/ABS - Direct Investment book | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 279 | 557 |
CDO/ABS - Direct Investment book | Binomial Expansion Technique (BET) | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Recovery rates | 7.00% | 6.00% |
Diversity score | 5 | 5 |
Weighted average life | 0 years 3 months | 1 year 0 months 25 days |
CDO/ABS - Direct Investment book | Binomial Expansion Technique (BET) | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Recovery rates | 36.00% | 63.00% |
Diversity score | 27 | 35 |
Weighted average life | 10 years 5 months 26 days | 9 years 5 months 19 days |
CDO/ABS - Direct Investment book | Binomial Expansion Technique (BET) | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Recovery rates | 21.00% | 25.00% |
Diversity score | 12 | 12 |
Weighted average life | 3 years 11 months 5 days | 4 years 10 months 10 days |
Obligations of states, municipalities and political subdivisions | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 1,178 | 920 |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.90% | 4.94% |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.62% | 5.86% |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.26% | 5.40% |
FAIR_VALUE_MEASUREMENTS_Detail6
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) (Level 3, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Policyholder contract deposits - GMWB | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | 1,509 | 312 |
Policyholder contract deposits - GMWB | Discounted cash flow | Minimum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity implied volatility | 6.00% | 6.00% |
Base lapse rates | 1.00% | 1.00% |
Dynamic lapse rates | 0.20% | 0.20% |
Mortality rates | 0.10% | 0.50% |
Utilization rates | 0.50% | 0.50% |
Policyholder contract deposits - GMWB | Discounted cash flow | Maximum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity implied volatility | 39.00% | 39.00% |
Base lapse rates | 40.00% | 40.00% |
Dynamic lapse rates | 60.00% | 60.00% |
Mortality rates | 35.00% | 40.00% |
Utilization rates | 30.00% | 25.00% |
Derivative Liabilities - Credit contracts | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | 791 | 996 |
Derivative Liabilities - Credit contracts | BET | Minimum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Recovery rates | 5.00% | 5.00% |
Diversity score | 8 | 9 |
Weighted average life | 2 years 8 months 1 day | 4 years 6 months |
Derivative Liabilities - Credit contracts | BET | Maximum | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Recovery rates | 23.00% | 34.00% |
Diversity score | 25 | 32 |
Weighted average life | 10 years 5 months 26 days | 9 years 5 months 19 days |
Derivative Liabilities - Credit contracts | BET | Weighted-average | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Recovery rates | 13.00% | 17.00% |
Diversity score | 13 | 13 |
Weighted average life | 4 years 7 months 24 days | 5 years 7 months 17 days |
FAIR_VALUE_MEASUREMENTS_Detail7
FAIR VALUE MEASUREMENTS (Details - Investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $8,359 | $7,732 |
Unfunded Commitments | 986 | 977 |
Private equity funds: | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 3,160 | 3,347 |
Unfunded Commitments | 980 | 949 |
Investment redemption notice period (in days/years) | ||
Private equity funds: | Expected remaining lives of less than 3 years | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 72.00% | |
Private equity funds: | Expected remaining lives of 4 to 6 years | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 18.00% | |
Private equity funds: | Expected remaining lives of 7 to 10 years | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 10.00% | |
Leveraged buyout | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 2,275 | 2,544 |
Unfunded Commitments | 450 | 578 |
Real Estate / Infrastructure | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 384 | 346 |
Unfunded Commitments | 227 | 86 |
Venture capital | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 121 | 140 |
Unfunded Commitments | 26 | 13 |
Distressed | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 164 | 183 |
Unfunded Commitments | 43 | 34 |
Other.. | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 216 | 134 |
Unfunded Commitments | 234 | 238 |
Hedge funds: | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 5,199 | 4,385 |
Unfunded Commitments | 6 | 28 |
Hedge fund investments redeemable monthly (as a percent) | 14.00% | |
Hedge fund investments redeemable quarterly (as a percent) | 49.00% | |
Hedge fund investments redeemable semi-annually (as a percent) | 15.00% | |
Hedge fund investments redeemable annually (as a percent) | 22.00% | |
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 43.00% | |
Event-driven | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 1,109 | 976 |
Unfunded Commitments | 0 | 2 |
Long-short | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 2,428 | 1,759 |
Unfunded Commitments | 1 | 11 |
Macro | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 498 | 612 |
Unfunded Commitments | 0 | 0 |
Distressed. | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 731 | 594 |
Unfunded Commitments | 5 | 15 |
Emerging markets | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 308 | 287 |
Unfunded Commitments | 0 | 0 |
Other hedge funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 125 | 157 |
Unfunded Commitments | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail8
FAIR VALUE MEASUREMENTS (Details - Gains or losses recorded related to the eligible instruments for which we elected the fair value option) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option credit risk gains (losses) on liabilities | $641 | $54 | $32 |
Fair Value Option | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 2,140 | 2,353 | 6,931 |
Fair Value Option | Other long-term debt | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | -269 | 327 | -681 |
Fair Value Option | Other liabilities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | -13 | -15 | -33 |
Fair Value Option | Mortgage and other loans receivable, net of allowance | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 0 | 3 | 47 |
Fair Value Option | Bond and equity securities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 2,099 | 1,667 | 2,339 |
Fair Value Option | Other securities - ML II interest | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 0 | 0 | 246 |
Fair Value Option | Other securities - ML III interest | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 0 | 0 | 2,888 |
Fair Value Option | Retained interest in AIA | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 0 | 0 | 2,069 |
Fair Value Option | Alternative investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 313 | 360 | 36 |
Fair Value Option | Short-term investments and other invested assets and Other assets | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | $10 | $11 | $20 |
FAIR_VALUE_MEASUREMENTS_Detail9
FAIR VALUE MEASUREMENTS (Details - Difference between fair values and the aggregate contractual principal amounts of mortgage and other loans receivable and long-term borrowings for which the fair value option was elected) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage and other loans receivable, Fair Value | $0 | $6 |
Long-term debt, Fair Value | 6,747 | 5,466 |
Long-term debt, Outstanding Principal Amount | 41,693 | 31,217 |
Fair Value Option | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage and other loans receivable, Fair Value | 0 | 6 |
Mortgage and other loans receivable, Outstanding Principal Amount | 0 | 4 |
Fair Value, Option, Aggregate Differences, Loans and Long-term Receivables | 0 | 2 |
Long-term debt, Fair Value | 6,747 | 5,466 |
Long-term debt, Outstanding Principal Amount | 5,231 | 4,101 |
Long-term debt, Difference | 1,516 | 1,365 |
Disclosure level, past due mortgage or other loans receivable for which the fair value option was elected, number of days past due threshold | 90 days | |
Mortgage or other loans receivable for which the fair value option was elected which were 90 days or more past due | 0 | 0 |
Mortgage or other loans receivable for which the fair value option was elected which were in non-accrual status | $0 | $0 |
Recovered_Sheet1
FAIR VALUE MEASUREMENTS (Details - Assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | $342 | $1,114 | $471 |
Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | 134 | 112 | 151 |
Investments in life settlements | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | 201 | 971 | 309 |
Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | 7 | 31 | 11 |
Fair value on a non-recurring basis | Level 1 | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 1 | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 1 | Investments in life settlements | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 1 | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 2 | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 11 | |
Fair value on a non-recurring basis | Level 2 | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 2 | Investments in life settlements | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 2 | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 11 | |
Fair value on a non-recurring basis | Level 3 | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 1,328 | 2,559 | |
Fair value on a non-recurring basis | Level 3 | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 790 | 1,615 | |
Fair value on a non-recurring basis | Level 3 | Investments in life settlements | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 537 | 896 | |
Fair value on a non-recurring basis | Level 3 | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 1 | 48 | |
Fair value on a non-recurring basis | Total Fair Value | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 1,328 | 2,570 | |
Fair value on a non-recurring basis | Total Fair Value | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 790 | 1,615 | |
Fair value on a non-recurring basis | Total Fair Value | Investments in life settlements | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | 537 | 896 | |
Fair value on a non-recurring basis | Total Fair Value | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Assets at Fair Value, Non-Recurring Basis | $1 | $59 |
Recovered_Sheet2
FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Assets: | ||||
Mortgage and other loans receivable | $24,990 | $20,765 | ||
Short-term investments | 11,243 | 21,617 | ||
Cash | 1,758 | 2,241 | 1,151 | 1,474 |
Liabilities: | ||||
Other liabilities | 24,168 | 29,155 | ||
Long-term debt | 31,217 | 41,693 | ||
Total Fair Value | ||||
Assets: | ||||
Mortgage and other loans receivable | 26,606 | 21,637 | ||
Other invested assets | 3,475 | 3,234 | ||
Short-term investments | 9,559 | 15,304 | ||
Cash | 1,758 | 2,241 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 119,512 | 114,560 | ||
Other liabilities | 1,120 | 4,870 | ||
Long-term debt | 27,681 | 38,633 | ||
Level 1 | ||||
Assets: | ||||
Mortgage and other loans receivable | 0 | 0 | ||
Other invested assets | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Cash | 1,758 | 2,241 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Mortgage and other loans receivable | 449 | 219 | ||
Other invested assets | 593 | 529 | ||
Short-term investments | 9,559 | 15,304 | ||
Cash | 0 | 0 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 244 | 199 | ||
Other liabilities | 1,120 | 4,869 | ||
Long-term debt | 24,749 | 36,239 | ||
Level 3 | ||||
Assets: | ||||
Mortgage and other loans receivable | 26,157 | 21,418 | ||
Other invested assets | 2,882 | 2,705 | ||
Short-term investments | 0 | 0 | ||
Cash | 0 | 0 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 119,268 | 114,361 | ||
Other liabilities | 0 | 1 | ||
Long-term debt | 2,932 | 2,394 | ||
Carrying Value | ||||
Assets: | ||||
Mortgage and other loans receivable | 24,984 | 20,765 | ||
Other invested assets | 4,352 | 4,194 | ||
Short-term investments | 9,559 | 15,304 | ||
Cash | 1,758 | 2,241 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 106,395 | 105,093 | ||
Other liabilities | 1,120 | 4,869 | ||
Long-term debt | $25,751 | $34,946 |
INVESTMENTS_Details_Amortized_
INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | $245,237,000,000 | $250,257,000,000 |
Available for sale securities, Gross Unrealized Gains | 20,890,000,000 | 16,360,000,000 |
Available for sale securities, Gross Unrealized Losses | -1,873,000,000 | -4,687,000,000 |
Available for sale securities, Fair Value | 264,254,000,000 | 261,930,000,000 |
AOCI- OTTI | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Total, Other-Than-Temporary Impairments in AOCI | 2,080,000,000 | 1,916,000,000 |
Bonds available for sale | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 243,307,000,000 | 248,531,000,000 |
Available for sale securities, Gross Unrealized Gains | 18,371,000,000 | 14,391,000,000 |
Available for sale securities, Gross Unrealized Losses | -1,819,000,000 | -4,648,000,000 |
Available for sale securities, Fair Value | 259,859,000,000 | 258,274,000,000 |
Other details of available for sale securities | ||
Available for sale securities not rated or rated below investment grade | 35,100,000,000 | 32,600,000,000 |
Bonds available for sale | AOCI- OTTI | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Total, Other-Than-Temporary Impairments in AOCI | 2,080,000,000 | 1,916,000,000 |
Bonds available for sale | U.S. government and government sponsored entities | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 2,806,000,000 | 3,084,000,000 |
Available for sale securities, Gross Unrealized Gains | 204,000,000 | 150,000,000 |
Available for sale securities, Gross Unrealized Losses | -18,000,000 | -39,000,000 |
Available for sale securities, Fair Value | 2,992,000,000 | 3,195,000,000 |
Bonds available for sale | U.S. government and government sponsored entities | AOCI- OTTI | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Total, Other-Than-Temporary Impairments in AOCI | 0 | 0 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 25,979,000,000 | 28,704,000,000 |
Available for sale securities, Gross Unrealized Gains | 1,729,000,000 | 1,122,000,000 |
Available for sale securities, Gross Unrealized Losses | -49,000,000 | -446,000,000 |
Available for sale securities, Fair Value | 27,659,000,000 | 29,380,000,000 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | AOCI- OTTI | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Total, Other-Than-Temporary Impairments in AOCI | -13,000,000 | -15,000,000 |
Bonds available for sale | Non-U.S. government | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 20,280,000,000 | 22,045,000,000 |
Available for sale securities, Gross Unrealized Gains | 966,000,000 | 822,000,000 |
Available for sale securities, Gross Unrealized Losses | -151,000,000 | -358,000,000 |
Available for sale securities, Fair Value | 21,095,000,000 | 22,509,000,000 |
Bonds available for sale | Non-U.S. government | AOCI- OTTI | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Total, Other-Than-Temporary Impairments in AOCI | 0 | 0 |
Bonds available for sale | Corporate debt | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 134,961,000,000 | 139,461,000,000 |
Available for sale securities, Gross Unrealized Gains | 10,594,000,000 | 7,989,000,000 |
Available for sale securities, Gross Unrealized Losses | -1,122,000,000 | -2,898,000,000 |
Available for sale securities, Fair Value | 144,433,000,000 | 144,552,000,000 |
Bonds available for sale | Corporate debt | AOCI- OTTI | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Total, Other-Than-Temporary Impairments in AOCI | 64,000,000 | 74,000,000 |
Bonds available for sale | Mortgage-backed, asset-backed and collateralized | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 59,281,000,000 | 55,237,000,000 |
Available for sale securities, Gross Unrealized Gains | 4,878,000,000 | 4,308,000,000 |
Available for sale securities, Gross Unrealized Losses | -479,000,000 | -907,000,000 |
Available for sale securities, Fair Value | 63,680,000,000 | 58,638,000,000 |
Bonds available for sale | Mortgage-backed, asset-backed and collateralized | AOCI- OTTI | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Total, Other-Than-Temporary Impairments in AOCI | 2,029,000,000 | 1,857,000,000 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 34,377,000,000 | 33,520,000,000 |
Available for sale securities, Gross Unrealized Gains | 3,435,000,000 | 3,101,000,000 |
Available for sale securities, Gross Unrealized Losses | -292,000,000 | -473,000,000 |
Available for sale securities, Fair Value | 37,520,000,000 | 36,148,000,000 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | AOCI- OTTI | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,767,000,000 | 1,670,000,000 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 12,129,000,000 | 11,216,000,000 |
Available for sale securities, Gross Unrealized Gains | 815,000,000 | 558,000,000 |
Available for sale securities, Gross Unrealized Losses | -59,000,000 | -292,000,000 |
Available for sale securities, Fair Value | 12,885,000,000 | 11,482,000,000 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | AOCI- OTTI | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Total, Other-Than-Temporary Impairments in AOCI | 215,000,000 | 125,000,000 |
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 12,775,000,000 | 10,501,000,000 |
Available for sale securities, Gross Unrealized Gains | 628,000,000 | 649,000,000 |
Available for sale securities, Gross Unrealized Losses | -128,000,000 | -142,000,000 |
Available for sale securities, Fair Value | 13,275,000,000 | 11,008,000,000 |
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | AOCI- OTTI | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Total, Other-Than-Temporary Impairments in AOCI | 47,000,000 | 62,000,000 |
Equity securities available for sale | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 1,930,000,000 | 1,726,000,000 |
Available for sale securities, Gross Unrealized Gains | 2,519,000,000 | 1,969,000,000 |
Available for sale securities, Gross Unrealized Losses | -54,000,000 | -39,000,000 |
Available for sale securities, Fair Value | 4,395,000,000 | 3,656,000,000 |
Equity securities available for sale | Common Stock | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 1,185,000,000 | 1,280,000,000 |
Available for sale securities, Gross Unrealized Gains | 2,461,000,000 | 1,953,000,000 |
Available for sale securities, Gross Unrealized Losses | -17,000,000 | -14,000,000 |
Available for sale securities, Fair Value | 3,629,000,000 | 3,219,000,000 |
Equity securities available for sale | Preferred Stock | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 21,000,000 | 24,000,000 |
Available for sale securities, Gross Unrealized Gains | 4,000,000 | 4,000,000 |
Available for sale securities, Gross Unrealized Losses | 0 | -1,000,000 |
Available for sale securities, Fair Value | 25,000,000 | 27,000,000 |
Equity securities available for sale | Mutual Funds | ||
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value | ||
Available for sale securities, Amortized Cost or Cost | 724,000,000 | 422,000,000 |
Available for sale securities, Gross Unrealized Gains | 54,000,000 | 12,000,000 |
Available for sale securities, Gross Unrealized Losses | -37,000,000 | -24,000,000 |
Available for sale securities, Fair Value | $741,000,000 | $410,000,000 |
INVESTMENTS_Details_Summary_of
INVESTMENTS (Details - Summary of fair value and gross unrealized losses on available for sale securities aggregated by major investment category and length of time in a continuous unrealized loss position) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | $23,825 | $64,881 |
Gross Unrealized Losses, Less than 12 Months | 719 | 3,507 |
Fair Value, 12 Months or More | 22,344 | 9,401 |
Gross Unrealized Losses, 12 Months or More | 1,154 | 1,180 |
Fair Value, Total | 46,169 | 74,282 |
Gross Unrealized Losses, Total | 1,873 | 4,687 |
Bonds available for sale | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 23,457 | 64,411 |
Gross Unrealized Losses, Less than 12 Months | 666 | 3,468 |
Fair Value, 12 Months or More | 22,278 | 9,401 |
Gross Unrealized Losses, 12 Months or More | 1,153 | 1,180 |
Fair Value, Total | 45,735 | 73,812 |
Gross Unrealized Losses, Total | 1,819 | 4,648 |
Number of securities in an unrealized loss position | 6,394 | |
Number of individual securities in continuous unrealized loss position for longer than twelve months | 2,123 | |
Bonds available for sale | U.S. government and government sponsored entities | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 526 | 1,101 |
Gross Unrealized Losses, Less than 12 Months | 5 | 34 |
Fair Value, 12 Months or More | 281 | 42 |
Gross Unrealized Losses, 12 Months or More | 13 | 5 |
Fair Value, Total | 807 | 1,143 |
Gross Unrealized Losses, Total | 18 | 39 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 495 | 6,134 |
Gross Unrealized Losses, Less than 12 Months | 9 | 379 |
Fair Value, 12 Months or More | 794 | 376 |
Gross Unrealized Losses, 12 Months or More | 40 | 67 |
Fair Value, Total | 1,289 | 6,510 |
Gross Unrealized Losses, Total | 49 | 446 |
Bonds available for sale | Non-U.S. government | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 1,606 | 4,102 |
Gross Unrealized Losses, Less than 12 Months | 42 | 217 |
Fair Value, 12 Months or More | 1,690 | 710 |
Gross Unrealized Losses, 12 Months or More | 109 | 141 |
Fair Value, Total | 3,296 | 4,812 |
Gross Unrealized Losses, Total | 151 | 358 |
Bonds available for sale | Corporate debt | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 12,132 | 38,495 |
Gross Unrealized Losses, Less than 12 Months | 450 | 2,251 |
Fair Value, 12 Months or More | 11,570 | 4,926 |
Gross Unrealized Losses, 12 Months or More | 672 | 647 |
Fair Value, Total | 23,702 | 43,421 |
Gross Unrealized Losses, Total | 1,122 | 2,898 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 4,621 | 8,543 |
Gross Unrealized Losses, Less than 12 Months | 109 | 349 |
Fair Value, 12 Months or More | 3,996 | 1,217 |
Gross Unrealized Losses, 12 Months or More | 183 | 124 |
Fair Value, Total | 8,617 | 9,760 |
Gross Unrealized Losses, Total | 292 | 473 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 220 | 3,191 |
Gross Unrealized Losses, Less than 12 Months | 1 | 176 |
Fair Value, 12 Months or More | 2,087 | 1,215 |
Gross Unrealized Losses, 12 Months or More | 58 | 116 |
Fair Value, Total | 2,307 | 4,406 |
Gross Unrealized Losses, Total | 59 | 292 |
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 3,857 | 2,845 |
Gross Unrealized Losses, Less than 12 Months | 50 | 62 |
Fair Value, 12 Months or More | 1,860 | 915 |
Gross Unrealized Losses, 12 Months or More | 78 | 80 |
Fair Value, Total | 5,717 | 3,760 |
Gross Unrealized Losses, Total | 128 | 142 |
Equity securities available for sale | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 368 | 470 |
Gross Unrealized Losses, Less than 12 Months | 53 | 39 |
Fair Value, 12 Months or More | 66 | 0 |
Gross Unrealized Losses, 12 Months or More | 1 | 0 |
Fair Value, Total | 434 | 470 |
Gross Unrealized Losses, Total | 54 | 39 |
Number of securities in an unrealized loss position | 118 | |
Equity securities available for sale | Common Stock | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 88 | 96 |
Gross Unrealized Losses, Less than 12 Months | 16 | 14 |
Fair Value, 12 Months or More | 2 | 0 |
Gross Unrealized Losses, 12 Months or More | 1 | 0 |
Fair Value, Total | 90 | 96 |
Gross Unrealized Losses, Total | 17 | 14 |
Equity securities available for sale | Preferred Stock | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 0 | 5 |
Gross Unrealized Losses, Less than 12 Months | 0 | 1 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 0 | 5 |
Gross Unrealized Losses, Total | 0 | 1 |
Equity securities available for sale | Mutual Funds | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 280 | 369 |
Gross Unrealized Losses, Less than 12 Months | 37 | 24 |
Fair Value, 12 Months or More | 64 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 344 | 369 |
Gross Unrealized Losses, Total | $37 | $24 |
INVESTMENTS_Details_Amortized_1
INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fixed Maturity Securities in a Loss Position Available for Sale , Amortized Cost, Total | $245,237 | $250,257 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 259,859 | 258,274 |
Fixed Maturity Securities Available for Sale in a Loss Position | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | 637 | |
Due after one year through five years, Amortized Cost | 6,669 | |
Due after five years through ten years, Amortized Cost | 12,873 | |
Due after ten years, Amortized Cost | 10,255 | |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 17,120 | |
Fixed Maturity Securities in a Loss Position Available for Sale , Amortized Cost, Total | 47,554 | |
Due in one year or less, Fair Value | 620 | |
Due after one year through five years, Fair Value | 6,529 | |
Due after five years through ten years, Fair Value | 12,338 | |
Due after ten years, Fair Value | 9,607 | |
Mortgage-backed, asset-backed and collateralized, Fair Value | 16,641 | |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 45,735 | |
Bonds available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | 9,821 | |
Due after one year through five years, Amortized Cost | 48,352 | |
Due after five years through ten years, Amortized Cost | 62,685 | |
Due after ten years, Amortized Cost | 63,168 | |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 59,281 | |
Fixed Maturity Securities in a Loss Position Available for Sale , Amortized Cost, Total | 243,307 | 248,531 |
Due in one year or less, Fair Value | 9,975 | |
Due after one year through five years, Fair Value | 50,873 | |
Due after five years through ten years, Fair Value | 65,889 | |
Due after ten years, Fair Value | 69,442 | |
Mortgage-backed, asset-backed and collateralized, Fair Value | 63,680 | |
Fixed Maturity Securities Available for Sale, Fair Value, Total | $259,859 |
INVESTMENTS_Details_Realized_g
INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | $838,000,000 | $2,764,000,000 | $3,293,000,000 |
Gross Realized Losses | 142,000,000 | 221,000,000 | 202,000,000 |
Aggregate fair value of available for sale securities sold | 25,300,000,000 | 35,900,000,000 | 40,300,000,000 |
Net realized capital gains (losses) | 700,000,000 | 2,500,000,000 | 3,100,000,000 |
Fixed maturity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | 703,000,000 | 2,634,000,000 | 2,778,000,000 |
Gross Realized Losses | 118,000,000 | 202,000,000 | 171,000,000 |
Equity securities available for sale | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | 135,000,000 | 130,000,000 | 515,000,000 |
Gross Realized Losses | $24,000,000 | $19,000,000 | $31,000,000 |
INVESTMENTS_Details_Value_of_o
INVESTMENTS (Details - Value of other securities measured at fair value based on election of the fair value option) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $20,761 | $23,457 |
Other Securities, Percent of Total | 100.00% | 100.00% |
U.S. Government agency backed ABS | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | 900 | 1,000 |
Fixed maturity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | 19,712 | 22,623 |
Other Securities, Percent of Total | 95.00% | 97.00% |
Fixed maturity securities | U.S. government and government sponsored entities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | 5,498 | 5,723 |
Other Securities, Percent of Total | 27.00% | 24.00% |
Fixed maturity securities | Obligations of states, territories and political subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | 122 | 121 |
Other Securities, Percent of Total | 1.00% | 1.00% |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | 2 | 2 |
Other Securities, Percent of Total | 0.00% | 0.00% |
Fixed maturity securities | Corporate debt | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | 719 | 1,169 |
Other Securities, Percent of Total | 3.00% | 5.00% |
Fixed maturity securities | Mortgage-backed, asset-backed and collateralized | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | 13,371 | 15,601 |
Other Securities, Percent of Total | 64.00% | 67.00% |
Fixed maturity securities | Residential mortgage-backed securities (RMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | 2,094 | 2,263 |
Other Securities, Percent of Total | 10.00% | 10.00% |
Fixed maturity securities | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | 1,077 | 1,353 |
Other Securities, Percent of Total | 5.00% | 6.00% |
Fixed maturity securities | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | 10,200 | 11,985 |
Other Securities, Percent of Total | 49.00% | 51.00% |
Fixed maturity securities | Other | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | 0 | 7 |
Other Securities, Percent of Total | 0.00% | 0.00% |
Equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $1,049 | $834 |
Other Securities, Percent of Total | 5.00% | 3.00% |
INVESTMENTS_Details_Carrying_v
INVESTMENTS (Details - Carrying values of other invested assets) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investment [Line Items] | ||
Other invested assets | $34,518 | $28,659 |
Other invested assets, gross unrealized losses | 56 | 15 |
Alternative investments | ||
Investment [Line Items] | ||
Other invested assets | 19,656 | 19,709 |
Mutual Funds | ||
Investment [Line Items] | ||
Other invested assets | 85 | |
Investment real estate | ||
Investment [Line Items] | ||
Other invested assets | 3,612 | 3,113 |
Net of accumulated depreciation on investment in real estate | 315 | 513 |
Aircraft asset investments | ||
Investment [Line Items] | ||
Other invested assets | 651 | 763 |
Investment In Aer Cap [Member] | ||
Investment [Line Items] | ||
Other invested assets | 4,972 | |
Investments in life settlements | ||
Investment [Line Items] | ||
Other invested assets | 3,753 | 3,601 |
All other investments | ||
Investment [Line Items] | ||
Other invested assets | $1,874 | $1,388 |
INVESTMENTS_Details_Equity_met
INVESTMENTS (Details - Equity method investments) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Other Invested Assets - Equity Method Investments | |
Investee's reporting period prior to the end of entity's reporting period | 1 month |
Maximum | |
Other Invested Assets - Equity Method Investments | |
Investee's reporting period prior to the end of entity's reporting period | 3 months |
INVESTMENTS_Details_AIA_IPO
INVESTMENTS (Details - AIA IPO) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 20, 2012 | Sep. 11, 2012 | Mar. 07, 2012 | Oct. 29, 2010 | Dec. 31, 2011 | |
Subsidiary, Sale of Stock [Line Items] | ||||||||
Subsequent sale of ordinary shares | 41,551 | 58,787 | 729,308 | |||||
AIA Group Limited (AIA) | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Ordinary shares issued through IPO | 0 | |||||||
Gross proceeds from ordinary shares issued through IPO | $0 | |||||||
Percentage of voting interest owned | 0.00% | |||||||
Pre-tax gain (loss) on deconsolidation | 0 | |||||||
Subsequent sale of ordinary shares | 0 | 0 | 0 | |||||
Gross proceeds from subsequent shares sold | 0 | 0 | 0 | |||||
Fair value option gain (loss) | 0 | 0 |
INVESTMENTS_Details_Summarized
INVESTMENTS (Details - Summarized financial information of equity method investees) (All other equity method investments, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
All other equity method investments | |||
Operating results: | |||
Total revenues | $29,579 | $19,181 | $9,438 |
Total expenses | -7,828 | -5,515 | -5,183 |
Net income | 21,751 | 13,666 | 4,255 |
Balance sheet: | |||
Total assets | 207,994 | 150,586 | |
Total liabilities | -67,346 | -25,134 | |
Equity method investments, Carrying Value | $18,951 | $12,921 |
INVESTMENTS_Details_Life_settl
INVESTMENTS (Details - Life settlements) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
item | |||
INVESTMENTS | |||
Income recognized on life settlement contracts | $407 | $334 | $253 |
Number of Contracts | |||
Number of Contracts, 0 - 1 year | 1 | ||
Number of Contracts, 1 - 2 years | 12 | ||
Number of Contracts, 2 - 3 years | 18 | ||
Number of Contracts, 3 - 4 years | 77 | ||
Number of Contracts, 4 - 5 years | 152 | ||
Number of Contracts, Thereafter | 4,687 | ||
Total Number of Contracts | 4,947 | ||
Carrying Value | |||
Carrying Value, 1 to 2 years | 9 | ||
Carrying Value, 2 to 3 years | 11 | ||
Carrying Value, 3 to 4 years | 42 | ||
Carrying Value, 4 to 5 years | 205 | ||
Carrying Value, Thereafter | 3,486 | ||
Total of Carrying Value | 3,753 | ||
Face Value (Death Benefits) | |||
Face Value (Death Benefits), 1 - 2 years | 19 | ||
Face Value (Death Benefits), 2 - 3 years | 19 | ||
Face Value (Death Benefits), 3 - 4 years | 93 | ||
Face Value (Death Benefits), 4 - 5 years | 436 | ||
Face Value (Death Benefits), Thereafter | 15,370 | ||
Total of Face Value (Death Benefits) | 15,937 | ||
Anticipated life insurance premiums | |||
2014 | 545 | ||
2015 | 562 | ||
2016 | 584 | ||
2017 | 607 | ||
2018 | $627 |
INVESTMENTS_Details_Components
INVESTMENTS (Details - Components of Net investment income) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investment [Line Items] | |||
Total investment income | $16,596 | $16,358 | $20,947 |
Investment expenses | 517 | 548 | 604 |
Net investment income | 16,079 | 15,810 | 20,343 |
AIA Group Limited (AIA) | |||
Investment [Line Items] | |||
Total investment income | 0 | 2,069 | |
Maiden Lane II | |||
Investment [Line Items] | |||
Total investment income | 0 | 246 | |
Maiden Lane III | |||
Investment [Line Items] | |||
Total investment income | 0 | 2,888 | |
MetLife Inc. (MetLife) | |||
Investment [Line Items] | |||
Total investment income | 0 | ||
Fixed maturity securities, including short-term investments | |||
Investment [Line Items] | |||
Total investment income | 12,322 | 12,044 | 12,592 |
Equity securities | |||
Investment [Line Items] | |||
Total investment income | 221 | 178 | 162 |
Interest on mortgage and other loans | |||
Investment [Line Items] | |||
Total investment income | 1,272 | 1,144 | 1,083 |
Alternative investments | |||
Investment [Line Items] | |||
Total investment income | 2,624 | 2,803 | 1,769 |
Real estate | |||
Investment [Line Items] | |||
Total investment income | 110 | 128 | 127 |
Other investments | |||
Investment [Line Items] | |||
Total investment income | $47 | $61 | $11 |
INVESTMENTS_Details_Components1
INVESTMENTS (Details - Components of Net realized capital gains (losses)) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other-than-temporary impairments: | |||
Severity | ($3) | ($6) | ($44) |
Change in intent | -40 | -48 | -62 |
Foreign currency declines | -19 | -1 | -8 |
Issuer-specific credit events | -169 | -170 | -931 |
Adverse projected cash flows | -16 | -7 | -5 |
Provision for loan losses | -1 | -26 | 104 |
Foreign exchange transactions | 598 | 151 | -233 |
Derivative instruments | -177 | 287 | -529 |
Impairments of investments in life settlements | -201 | -971 | -309 |
Other | 71 | 187 | 13 |
Total net realized capital gains | 739 | 1,939 | 1,087 |
MetLife | |||
Other-than-temporary impairments: | |||
Total net realized capital gains | 0 | ||
Fixed maturity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Sale of fixed maturity securities | 585 | 2,432 | 2,607 |
Equity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Sale of fixed maturity securities | $111 | $111 | $484 |
INVESTMENTS_Details_Increase_d
INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | $7,720 | ($13,605) |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | 6,809 | -14,066 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | 535 | 360 |
Other investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | $376 | $101 |
INVESTMENTS_Details_Rollforwar
INVESTMENTS (Details - Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fixed maturity securities | |||
Other Than Temporary Impairment Credit Losses Recognized in Earnings | |||
Balance, beginning of year | $3,872 | $5,164 | $6,504 |
Increases due to: | |||
Credit impairments on new securities subject to impairment losses | 49 | 47 | 194 |
Additional credit impairments on previously impaired securities | 85 | 78 | 483 |
Reductions due to: | |||
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell | -613 | -643 | -1,105 |
Credit impaired securities for which there is a current intent or anticipated requirement to sell | 0 | 0 | -5 |
Accretion on securities previously impaired due to credit | -725 | -774 | -915 |
Other | -9 | 0 | 8 |
Balance, end of year | $2,659 | $3,872 | $5,164 |
Equity securities | |||
Reductions due to: | |||
Percent discount to cost for purposes of evaluating other-than-temporary impairment | 25.00% | ||
Criteria for considering impairment, period over which securities have been in a continuous decline in a value below cost | 12 months | ||
Rapid and severe percent discount to cost for purposes of evaluating other-than-temporary impairment | 50.00% | ||
Criteria for considering impairment, period of time traded at discount | 9 months |
INVESTMENTS_Details_Purchased_
INVESTMENTS (Details - Purchased Credit Impaired (PCI) Securities) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $243,307 | $248,531 |
Fair value | 264,254 | 261,930 |
Purchased Credit Impaired (PCI) Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Contractually required payments (principal and interest) | 30,520 | |
Cash flows expected to be collected | 24,561 | |
Recorded investment in acquired securities | 16,311 | |
Outstanding principal balance | 16,962 | 14,741 |
Amortized cost | 12,216 | 10,110 |
Fair value | 13,462 | 11,338 |
Changes in activity for the accretable yield on PCI securities: | ||
Balance, beginning of year | 6,940 | 4,766 |
Newly purchased PCI securities | 1,289 | 1,773 |
Disposals | 0 | -60 |
Accretion | -880 | -719 |
Effect of changes in interest rate indices | -542 | 302 |
Net reclassification from non-accretable difference, including effects of prepayments | 58 | 878 |
Balance, end of year | $6,865 | $6,940 |
INVESTMENTS_Details_Pledged_In
INVESTMENTS (Details - Pledged Investments) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investment [Line Items] | |||
Cash collateral as a percentage of security value used to determine classification as a sale | 90.00% | ||
Fair value of securities transferred under repurchase agreements accounted for as sales | $2,100,000,000 | ||
Fair value of securities pledged | 2,506,000,000 | 8,878,000,000 | |
Fair value of amount repledged | 131,000,000 | 71,000,000 | |
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements | 5,900,000,000 | 6,700,000,000 | |
FHLBs | |||
Investment [Line Items] | |||
Fair value of available for sale securities | 535,000,000 | 80,000,000 | |
Amount owned by subsidiaries | 44,000,000 | 57,000,000 | |
Secured financing | |||
Investment [Line Items] | |||
Fair value of available for sale securities | 0 | 3,837,000,000 | |
Fair value of other securities | 2,122,000,000 | 2,766,000,000 | |
GIAs | |||
Investment [Line Items] | |||
Fair value of other securities | $3,500,000,000 | $4,200,000,000 |
LENDING_ACTIVITIES_Details_Com
LENDING ACTIVITIES (Details - Composition of Mortgages and other loans receivable) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 25,261 | 21,077 | ||
Allowance for losses | -271 | -312 | -405 | -740 |
Mortgage and other loans receivable, net | 24,990 | 20,765 | ||
Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 18,909 | 16,195 | ||
Allowance for losses | -159 | -201 | -159 | -305 |
Commercial mortgages | California | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of mortgage loans in geographic area | 14.00% | 18.00% | ||
Commercial mortgages | New York | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of mortgage loans in geographic area | 18.00% | 17.00% | ||
Life insurance policy loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 2,710 | 2,830 | ||
Commercial loans, other loans and notes receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 3,642 | 2,052 |
LENDING_ACTIVITIES_Details_Cre
LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgage loans) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
loan | loan | |||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Mortgage and other loans receivable, net | $24,990 | $20,765 | ||
Allowance for losses | 271 | 312 | 405 | 740 |
Apartments | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 3,384 | 2,786 | ||
Restructured | 0 | 53 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 3,384 | 2,839 | ||
Allowance for losses | 3 | 10 | ||
Offices | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 6,100 | 4,636 | ||
Restructured | 343 | 210 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 75 | 42 | ||
Mortgage and other loans receivable, net | 6,518 | 4,888 | ||
Allowance for losses | 86 | 109 | ||
Retail | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 3,807 | 3,364 | ||
Restructured | 7 | 6 | ||
90 days or less delinquent | 10 | 5 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 3,824 | 3,375 | ||
Allowance for losses | 28 | 9 | ||
Industrial | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 1,689 | 1,607 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 1,689 | 1,607 | ||
Allowance for losses | 22 | 19 | ||
Hotel | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 1,660 | 1,431 | ||
Restructured | 17 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 1,677 | 1,431 | ||
Allowance for losses | 6 | 3 | ||
Others | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 1,812 | 1,970 | ||
Restructured | 0 | 85 | ||
90 days or less delinquent | 5 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 1,817 | 2,055 | ||
Allowance for losses | 14 | 51 | ||
Commercial mortgages | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Number of loans in good standing | 1,007 | 978 | ||
Number of loans restructured | 7 | 9 | ||
Number of loans 90 days or less delinquent | 6 | 2 | ||
Number of loans greater than 90 days delinquent or in process of foreclosure | 4 | 6 | ||
Number of Loans | 1,024 | 995 | ||
In good standing | 18,452 | 15,794 | ||
Restructured | 367 | 354 | ||
90 days or less delinquent | 15 | 5 | ||
Greater than 90 days delinquent or in process of foreclosure | 75 | 42 | ||
Mortgage and other loans receivable, net | 18,909 | 16,195 | ||
Allowance for losses | $159 | $201 | ||
Percentage of loans that are current as to payments of principal and interest | 98.00% | 98.00% | ||
Percentage restructured | 2.00% | 2.00% | ||
Percentage greater than 90 days delinquent or in foreclosure | 0.00% | |||
Percentage Total | 100.00% | 100.00% | ||
Percentage of loans with allowance for losses | 1.00% | 1.00% | ||
Percentage of current commercial mortgages held | 99.00% |
LENDING_ACTIVITIES_Details_Rol
LENDING ACTIVITIES (Details - Rollforward of the changes in the allowance for losses on Mortgage and other loans receivable) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | $312 | $405 | $740 |
Loans charged off | -68 | -116 | -44 |
Recoveries of loans previously charged off | 34 | 9 | 17 |
Net charge-offs | -34 | -107 | -27 |
Provision for loan losses | -8 | 20 | -103 |
Other | 1 | -6 | 0 |
Activity of discontinued operations | 0 | -205 | |
Allowance, end of period | 271 | 312 | 405 |
Loans modified in a troubled debt restructuring | 218 | 91 | |
Commercial mortgages | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | 201 | 159 | 305 |
Loans charged off | -29 | -12 | -23 |
Recoveries of loans previously charged off | 18 | 3 | 13 |
Net charge-offs | -11 | -9 | -10 |
Provision for loan losses | -31 | 52 | -136 |
Other | 0 | -1 | 0 |
Allowance, end of period | 159 | 201 | 159 |
Allowance related to individually assessed credit losses | 55 | 93 | |
Commercial mortgage loans | 192 | 264 | |
Other Loans | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | 111 | 246 | 435 |
Loans charged off | -39 | -104 | -21 |
Recoveries of loans previously charged off | 16 | 6 | 4 |
Net charge-offs | -23 | -98 | -17 |
Provision for loan losses | 23 | -32 | 33 |
Other | 1 | -5 | 0 |
Activity of discontinued operations | 0 | -205 | |
Allowance, end of period | $112 | $111 | $246 |
REINSURANCE_Details_Supplement
REINSURANCE (Details - Supplemental information for loss and benefit reserves, gross and net of ceded reinsurance) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Effects of Reinsurance [Line Items] | ||||
Allowance for doubtful accounts on reinsurance assets | $258,000,000 | $276,000,000 | ||
Supplemental information for loss and benefit reserves | ||||
Liability for unpaid claims and claims adjustment expense, As Reported | -77,260,000,000 | -81,547,000,000 | -87,991,000,000 | -91,145,000,000 |
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance | -61,612,000,000 | -64,316,000,000 | -68,782,000,000 | -70,825,000,000 |
Future policy benefits for life and accident and health insurance contracts | -42,749,000,000 | -40,653,000,000 | ||
Future policy benefits for life and accident and health insurance contracts, Net of Reinsurance | -41,767,000,000 | -39,619,000,000 | ||
Reserve for unearned premiums, As Reported | -21,324,000,000 | -21,953,000,000 | ||
Reserve for unearned premiums, Net of Reinsurance | -18,278,000,000 | -18,532,000,000 | ||
Reinsurance assets | 19,676,000,000 | 21,686,000,000 | ||
NICO | ||||
Supplemental information for loss and benefit reserves | ||||
Net of reinsurance amount reflecting cession | $1,500,000,000 | $1,600,000,000 |
REINSURANCE_Details_ShortDurat
REINSURANCE (Details - Short-Duration Reinsurance) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Premiums Written | ||||
Direct | $43,425 | $43,984 | $44,604 | |
Assumed | 3,419 | 4,319 | 4,917 | |
Ceded | -8,979 | -10,134 | -11,635 | |
Net Amount | 37,865 | 38,169 | 37,886 | |
Premiums earned: | ||||
Net | 37,254 | 37,499 | 38,189 | |
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | 15,648 | 17,231 | 19,209 | 20,320 |
Short-duration insurance | ||||
Premiums Written | ||||
Direct | 40,362 | 40,794 | 41,506 | |
Assumed | 3,400 | 3,655 | 4,993 | |
Ceded | -8,319 | -8,863 | -11,148 | |
Net Amount | 35,443 | 35,586 | 35,351 | |
Premiums earned: | ||||
Direct | 39,701 | 39,980 | 41,847 | |
Assumed | 3,258 | 3,516 | 3,129 | |
Ceded | -8,140 | -8,585 | -9,371 | |
Net | 34,819 | 34,911 | 35,605 | |
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | 2,600 | 3,300 | 4,500 | |
Reportable Segments | Total AIG Property Casualty | ||||
Premiums Written | ||||
Direct | 39,375 | 39,833 | 40,647 | |
Assumed | 3,399 | 4,306 | 4,900 | |
Ceded | -8,318 | -9,514 | -11,054 | |
Net Amount | 34,456 | 34,625 | 34,493 | |
Reportable Segments | Total AIG Property Casualty | Short-duration insurance | ||||
Premiums Written | ||||
Direct | 39,375 | 39,833 | 40,647 | |
Assumed | 3,399 | 4,306 | 4,900 | |
Ceded | -8,318 | -9,514 | -11,054 | |
Net Amount | 34,456 | 34,625 | 34,493 | |
Premiums earned: | ||||
Direct | 38,707 | 39,018 | 41,028 | |
Assumed | 3,258 | 3,516 | 3,133 | |
Ceded | -8,140 | -8,585 | -9,375 | |
Net | 33,825 | 33,949 | 34,786 | |
Eliminations | Short-duration insurance | ||||
Premiums Written | ||||
Assumed | -2 | 3 | 7 | |
Ceded | 2 | -3 | -7 | |
Premiums earned: | ||||
Assumed | 4 | -18 | -30 | |
Ceded | ($4) | $18 | $30 |
REINSURANCE_Details_LongDurati
REINSURANCE (Details - Long-Duration Reinsurance) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Feb. 07, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Premiums earned: | |||||
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | $15,648 | $17,231 | $19,209 | $20,320 | |
New letter of credit | |||||
Letters of credit | |||||
Letters of credit obtained on a bilateral basis related to long-duration intercompany reinsurance transactions | 450 | ||||
Number of new bilateral letters of credit | 2 | ||||
Automatic extension period | 1 year | ||||
Long-duration insurance in force | |||||
Premiums earned: | |||||
Direct | 4,070 | 4,164 | 3,974 | ||
Ceded | -661 | -620 | -581 | ||
Net | 3,409 | 3,544 | 3,393 | ||
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | 731,000 | 714 | 758 | ||
Life insurance ratios | |||||
Long-duration insurance in force ceded | 180,178 | 122,012 | 129,159 | ||
Divested Businesses | Long-duration insurance in force | |||||
Premiums earned: | |||||
Direct | 11 | 9 | 11 | ||
Ceded | 0 | 0 | 0 | ||
Net | 11 | 9 | 11 | ||
Life and Retirement | Long-duration insurance in force | |||||
Premiums earned: | |||||
Direct | 4,059 | 4,155 | 3,963 | ||
Ceded | -661 | -620 | -581 | ||
Net | 3,398 | 3,535 | 3,382 | ||
Life insurance ratios | |||||
Assumed insurance as a percentage of gross long-duration insurance in force | 0.04% | 0.05% | 0.05% | ||
Assumed insurance as a percent of gross premiums | 0.50% | 0.30% | 0.40% | ||
Letters of credit | |||||
Syndicated letter of credit facility outstanding related to long-duration intercompany reinsurance transactions | 260 | ||||
Letters of credit obtained on a bilateral basis related to long-duration intercompany reinsurance transactions | 190 | ||||
Letter of credit outstanding | $450 |
REINSURANCE_Details_Reinsuranc
REINSURANCE (Details - Reinsurance Security) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Reinsurance Security | ||
Reinsurance assets | $19,676 | $21,686 |
Secured | ||
Reinsurance Security | ||
Reinsurance assets | 6,200 | 6,000 |
Unsecured | ||
Reinsurance Security | ||
Reinsurance assets | $3,300 | $0 |
DEFERRED_POLICY_ACQUISITION_CO2
DEFERRED POLICY ACQUISITION COSTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Rollforward of deferred policy acquisition costs | |||
Amortization expense | ($5,330) | ($5,157) | ($5,709) |
Balance, end of year | 9,827 | 9,436 | 8,182 |
Value of business acquired | |||
Amortization of VOBA | 17 | 23 | 58 |
Unamortized balance of VOBA | 510 | 373 | 368 |
Percentage of unamortized balance of VOBA expected to be amortized in 2014 through 2017 by year | |||
Year one (as a percent) | 10.1 | ||
Year two (as a percent) | 8.9 | ||
Year three (as a percent) | 7.9 | ||
Year four (as a percent) | 7.2 | ||
Year five (as a percent) | 6.7 | ||
Years after five year (as a percent) | 59.2 | ||
(Increase) decrease in amortization expense | 29 | 23 | 115 |
Divested Businesses | |||
Rollforward of deferred policy acquisition costs | |||
Increase (decrease) in deferred policy acquisition costs due to net unrealized gains and losses on available for sale securities | 0 | ||
Reportable Segments | Property Casualty | |||
Rollforward of deferred policy acquisition costs | |||
Balance, beginning of year before consolidation and eliminations | 2,493 | 2,342 | 2,306 |
Acquisition costs deferred | 4,805 | 4,803 | 4,834 |
Amortization expense | -4,599 | -4,481 | -4,764 |
Increase (decrease) due to foreign exchange and other | 0 | 0 | 0 |
Other | -148 | -171 | -34 |
Balance, end of year before consolidation and eliminations | 2,551 | 2,493 | 2,342 |
Reportable Segments | Life and Retirement | |||
Rollforward of deferred policy acquisition costs | |||
Balance, beginning of year before consolidation and eliminations | 6,920 | 5,815 | 6,607 |
Acquisition costs deferred | 1,114 | 1,034 | 788 |
Amortization expense | -727 | -674 | -945 |
Change in net unrealized gains (losses) on securities | -360 | 784 | -621 |
Increase (decrease) due to foreign exchange | -32 | -39 | -14 |
Other | 343 | 0 | 0 |
Balance, end of year before consolidation and eliminations | 7,258 | 6,920 | 5,815 |
Increase (decrease) in deferred policy acquisition costs due to net unrealized gains and losses on available for sale securities | 1,400 | 1,100 | 1,800 |
Consolidation and Eliminations | |||
Rollforward of deferred policy acquisition costs | |||
Balance, end of year before consolidation and eliminations | $18 | $23 | $25 |
VARIABLE_INTEREST_ENTITIES_Det
VARIABLE INTEREST ENTITIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
item | ||
Assets: | ||
Bonds available for sale | $264,254,000,000 | $261,930,000,000 |
Other bond securities | 19,712,000,000 | 22,623,000,000 |
Mortgage and other loans receivable | 24,990,000,000 | 20,765,000,000 |
Other invested assets | 34,518,000,000 | 28,659,000,000 |
Liabilities: | ||
Long-term debt | 31,217,000,000 | 41,693,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 34,518,000,000 | 28,659,000,000 |
Real Estate and Investment Funds | ||
Liabilities: | ||
Off-balance sheet exposure | 56,400,000,000 | 50,800,000,000 |
Structured Investment Vehicles | Minimum | ||
Assets: | ||
Total assets | 0 | 800,000,000 |
Affordable Housing Partnerships | SunAmerica Affordable Housing Partners, Inc. | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Number of partnerships through which investments has been made in apartment units nationwide | 900 | |
Number of apartment units nationwide in which investment for developments has been made | 110,000 | |
Partnership equity syndicated to other investors | 7,700,000,000 | |
Commercial loans vehicles VIE | SunAmerica Affordable Housing Partners, Inc. | ||
Assets: | ||
Total assets | 313,000,000 | 360,000,000 |
Liabilities: | ||
Total liabilities | 53,000,000 | 117,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total maximum exposure to loss | 292,000,000 | 330,000,000 |
Consolidated VIE | ||
Assets: | ||
Bonds available for sale | 11,187,000,000 | 11,098,000,000 |
Other bond securities | 7,906,000,000 | 8,310,000,000 |
Mortgage and other loans receivable | 2,560,000,000 | 1,697,000,000 |
Other invested assets | 2,941,000,000 | 3,628,000,000 |
Other assets | 1,752,000,000 | 1,279,000,000 |
Total assets | 26,346,000,000 | 26,012,000,000 |
Liabilities: | ||
Long-term debt | 1,697,000,000 | 994,000,000 |
Other liabilities | 446,000,000 | 555,000,000 |
Total liabilities | 2,143,000,000 | 1,549,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 2,941,000,000 | 3,628,000,000 |
Consolidated VIE | Real Estate and Investment Funds | ||
Assets: | ||
Other invested assets | 577,000,000 | 849,000,000 |
Other assets | 40,000,000 | 49,000,000 |
Total assets | 617,000,000 | 898,000,000 |
Liabilities: | ||
Long-term debt | 69,000,000 | 71,000,000 |
Other liabilities | 32,000,000 | 31,000,000 |
Total liabilities | 101,000,000 | 102,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 577,000,000 | 849,000,000 |
Consolidated VIE | Securitization Vehicles | ||
Assets: | ||
Bonds available for sale | 11,152,000,000 | 11,028,000,000 |
Other bond securities | 7,251,000,000 | 7,449,000,000 |
Mortgage and other loans receivable | 2,398,000,000 | 1,508,000,000 |
Other invested assets | 651,000,000 | 763,000,000 |
Other assets | 1,447,000,000 | 1,014,000,000 |
Total assets | 22,899,000,000 | 21,762,000,000 |
Liabilities: | ||
Long-term debt | 1,370,000,000 | 626,000,000 |
Other liabilities | 276,000,000 | 225,000,000 |
Total liabilities | 1,646,000,000 | 851,000,000 |
Investment-grade debt securities, loans and other assets | 21,900,000,000 | 21,800,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 651,000,000 | 763,000,000 |
Consolidated VIE | Structured Investment Vehicles | ||
Assets: | ||
Other bond securities | 615,000,000 | 748,000,000 |
Other assets | 140,000,000 | 93,000,000 |
Total assets | 755,000,000 | 841,000,000 |
Liabilities: | ||
Long-term debt | 52,000,000 | 87,000,000 |
Total liabilities | 52,000,000 | 87,000,000 |
Consolidated VIE | Affordable Housing Partnerships | ||
Assets: | ||
Other invested assets | 1,684,000,000 | 1,986,000,000 |
Other assets | 49,000,000 | 41,000,000 |
Total assets | 1,733,000,000 | 2,027,000,000 |
Liabilities: | ||
Long-term debt | 199,000,000 | 188,000,000 |
Other liabilities | 101,000,000 | 83,000,000 |
Total liabilities | 300,000,000 | 271,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 1,684,000,000 | 1,986,000,000 |
Consolidated VIE | Other | ||
Assets: | ||
Bonds available for sale | 35,000,000 | 70,000,000 |
Other bond securities | 40,000,000 | 113,000,000 |
Mortgage and other loans receivable | 162,000,000 | 189,000,000 |
Other invested assets | 29,000,000 | 30,000,000 |
Other assets | 76,000,000 | 82,000,000 |
Total assets | 342,000,000 | 484,000,000 |
Liabilities: | ||
Long-term debt | 7,000,000 | 22,000,000 |
Other liabilities | 37,000,000 | 216,000,000 |
Total liabilities | 44,000,000 | 238,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 29,000,000 | 30,000,000 |
Consolidated VIE | Commercial loans vehicles VIE | SunAmerica Affordable Housing Partners, Inc. | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Number of VIEs | 1 | |
Consolidated VIE | Aircraft Trusts | SunAmerica Affordable Housing Partners, Inc. | ||
Assets: | ||
Total assets | 800,000,000 | 900,000,000 |
Liabilities: | ||
Total liabilities | 100,000,000 | 200,000,000 |
Unconsolidated VIE | ||
Assets: | ||
Other invested assets | 3,200,000,000 | 2,800,000,000 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 28,477,000,000 | 26,839,000,000 |
Maximum Exposure to Loss, On-Balance Sheet | 3,242,000,000 | 2,857,000,000 |
Maximum Exposure to Loss, Off-Balance Sheet | 454,000,000 | 289,000,000 |
Total maximum exposure to loss | 3,696,000,000 | 3,146,000,000 |
Other invested assets | 3,200,000,000 | 2,800,000,000 |
Unconsolidated VIE | Real Estate and Investment Funds | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 19,949,000,000 | 17,572,000,000 |
Maximum Exposure to Loss, On-Balance Sheet | 2,785,000,000 | 2,343,000,000 |
Maximum Exposure to Loss, Off-Balance Sheet | 454,000,000 | 289,000,000 |
Total maximum exposure to loss | 3,239,000,000 | 2,632,000,000 |
Unconsolidated VIE | Affordable Housing Partnerships | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 7,911,000,000 | 8,559,000,000 |
Maximum Exposure to Loss, On-Balance Sheet | 425,000,000 | 477,000,000 |
Total maximum exposure to loss | 425,000,000 | 477,000,000 |
Unconsolidated VIE | Other | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 617,000,000 | 708,000,000 |
Maximum Exposure to Loss, On-Balance Sheet | 32,000,000 | 37,000,000 |
Total maximum exposure to loss | $32,000,000 | $37,000,000 |
DERIVATIVES_AND_HEDGE_ACCOUNTI2
DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of our derivative instruments) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | $123,250 | $114,494 |
Gross Derivative Assets, Fair Value | 4,825 | 4,326 |
Gross Derivative Liabilities, Notional Amount | 103,914 | 92,063 |
Gross Derivative Liabilities, Fair Value | 7,381 | 6,214 |
Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Notional Amount | 39,300 | 6,700 |
Gross Derivative Liabilities, Fair Value | 1,500 | 424,000 |
Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Fair Value | 1,500 | 424 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 155 | |
Gross Derivative Assets, Fair Value | 0 | |
Gross Derivative Liabilities, Notional Amount | 25 | 112 |
Gross Derivative Liabilities, Fair Value | 2 | 15 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 611 | |
Gross Derivative Assets, Fair Value | 25 | |
Gross Derivative Liabilities, Notional Amount | 1,794 | 1,857 |
Gross Derivative Liabilities, Fair Value | 239 | 190 |
Derivatives designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 7 | |
Gross Derivative Assets, Fair Value | 1 | |
Gross Derivative Liabilities, Notional Amount | 104 | |
Gross Derivative Liabilities, Fair Value | 13 | |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 122,477 | 114,494 |
Gross Derivative Assets, Fair Value | 4,799 | 4,326 |
Gross Derivative Liabilities, Notional Amount | 101,991 | 90,094 |
Gross Derivative Liabilities, Fair Value | 7,127 | 6,009 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 65,070 | 50,897 |
Gross Derivative Assets, Fair Value | 3,743 | 3,771 |
Gross Derivative Liabilities, Notional Amount | 45,251 | 59,585 |
Gross Derivative Liabilities, Fair Value | 3,183 | 3,849 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 13,667 | 1,774 |
Gross Derivative Assets, Fair Value | 815 | 52 |
Gross Derivative Liabilities, Notional Amount | 8,516 | 3,789 |
Gross Derivative Liabilities, Fair Value | 1,251 | 129 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 7,565 | 29,296 |
Gross Derivative Assets, Fair Value | 206 | 413 |
Gross Derivative Liabilities, Notional Amount | 42,387 | 9,840 |
Gross Derivative Liabilities, Fair Value | 1,615 | 524 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 15 | 17 |
Gross Derivative Assets, Fair Value | 0 | 1 |
Gross Derivative Liabilities, Notional Amount | 11 | 13 |
Gross Derivative Liabilities, Fair Value | 6 | 5 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 5 | 70 |
Gross Derivative Assets, Fair Value | 4 | 55 |
Gross Derivative Liabilities, Notional Amount | 5,288 | 15,459 |
Gross Derivative Liabilities, Fair Value | 982 | 1,335 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 36,155 | 32,440 |
Gross Derivative Assets, Fair Value | 31 | 34 |
Gross Derivative Liabilities, Notional Amount | 538 | 1,408 |
Gross Derivative Liabilities, Fair Value | 90 | 167 |
Derivatives not designated as hedging instruments | Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 0 | 23,200 |
Gross Derivative Assets, Fair Value | $0 | $107 |
DERIVATIVES_AND_HEDGE_ACCOUNTI3
DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities in the Consolidated Balance Sheets) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ||
Derivative Assets, Notional Amount | $123,250,000,000 | $114,494,000,000 |
Derivative Assets, Fair Value | 4,825,000,000 | 4,326,000,000 |
Derivative Liabilities, Notional Amount | 103,914,000,000 | 92,063,000,000 |
Derivative Liabilities, Fair Value | 7,381,000,000 | 6,214,000,000 |
Derivative assets, Counterparty netting | -2,102,000,000 | -1,734,000,000 |
Derivative assets, Cash collateral | -1,119,000,000 | -820,000,000 |
Total derivative assets, net | 1,604,000,000 | 1,772,000,000 |
Derivative liabilities, Counterparty netting | -2,102,000,000 | -1,734,000,000 |
Derivative liabilities, Cash collateral | -1,429,000,000 | -1,484,000,000 |
Total derivative liabilities, net | 3,850,000,000 | 2,996,000,000 |
Less: Bifurcated embedded derivatives assets, fair value | 0 | 107,000,000 |
Less: Bifurcated embedded derivative liabilities, fair value | 1,577,000,000 | 485,000,000 |
Total derivative assets on consolidated balance sheet | 1,604,000,000 | 1,665,000,000 |
Total derivative liabilities on consolidated balance sheet | 2,273,000,000 | 2,511,000,000 |
Collateral | ||
Collateral posted to third parties for derivative transactions | 3,300,000,000 | 3,200,000,000 |
Collateral obtained from third parties for derivative transactions | 1,300,000,000 | 1,000,000,000 |
Global Capital Markets (GCM) derivatives | ||
Derivative [Line Items] | ||
Derivative Assets, Notional Amount | 78,158,000,000 | 54,473,000,000 |
Derivative Assets, Fair Value | 4,380,000,000 | 3,531,000,000 |
Derivative Liabilities, Notional Amount | 56,970,000,000 | 76,395,000,000 |
Derivative Liabilities, Fair Value | 5,155,000,000 | 5,012,000,000 |
AIG Financial Products | ||
Derivative [Line Items] | ||
Derivative Assets, Notional Amount | 23,153,000,000 | 41,942,000,000 |
Derivative Assets, Fair Value | 2,445,000,000 | 2,567,000,000 |
Derivative Liabilities, Notional Amount | 27,719,000,000 | 52,679,000,000 |
Derivative Liabilities, Fair Value | 3,019,000,000 | 3,506,000,000 |
AIG Markets | ||
Derivative [Line Items] | ||
Derivative Assets, Notional Amount | 55,005,000,000 | 12,531,000,000 |
Derivative Assets, Fair Value | 1,935,000,000 | 964,000,000 |
Derivative Liabilities, Notional Amount | 29,251,000,000 | 23,716,000,000 |
Derivative Liabilities, Fair Value | 2,136,000,000 | 1,506,000,000 |
Non-Global Capital Markets | ||
Derivative [Line Items] | ||
Derivative Assets, Notional Amount | 45,092,000,000 | 60,021,000,000 |
Derivative Assets, Fair Value | 445,000,000 | 795,000,000 |
Derivative Liabilities, Notional Amount | 46,944,000,000 | 15,668,000,000 |
Derivative Liabilities, Fair Value | $2,226,000,000 | $1,202,000,000 |
DERIVATIVES_AND_HEDGE_ACCOUNTI4
DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative instruments gain (loss): | |||
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships | $156 | $38 | $74 |
Gain (loss) recognized in Other comprehensive income on derivatives | 0 | -2 | |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Net realized capital gains (losses) | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 1 | -5 | |
Gain (loss) recognized in earnings on hedged items | -2 | 5 | |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | -1 | 0 | |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Interest credited to policyholder account balances | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | |
Gain (loss) recognized in earnings on hedged items | -1 | -2 | |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | -1 | -2 | |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Other income (losses) | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 43 | 99 | 124 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 43 | 99 | 124 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Loss on extinguishment of debt | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 0 | ||
Gain (loss) recognized in earnings on hedged items | 164 | ||
Gain (loss) recognized in earnings for ineffective portion | 0 | ||
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | ||
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 164 | ||
Derivatives designated as hedging instruments | Interest rate contracts | Cash flow hedging | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in Other comprehensive income on derivatives | 0 | 0 | -2 |
Reclassification from Accumulated other comprehensive income into earnings | 0 | 0 | -35 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Net realized capital gains (losses) | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | -129 | -187 | -2 |
Gain (loss) recognized in earnings on hedged items | 147 | 204 | 2 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 8 | 17 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 10 | 0 | 0 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Interest credited to policyholder account balances | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 0 | ||
Gain (loss) recognized in earnings on hedged items | -3 | ||
Gain (loss) recognized in earnings for ineffective portion | 0 | ||
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | ||
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | -3 | ||
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Other income (losses) | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | |
Gain (loss) recognized in earnings on hedged items | 23 | 0 | |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | 0 | |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 23 | 0 | |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Policyholder benefits and claims incurred | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 0 | ||
Gain (loss) recognized in earnings on hedged items | 0 | ||
Gain (loss) recognized in earnings for ineffective portion | 0 | ||
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | ||
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | ||
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Loss on extinguishment of debt | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 0 | ||
Gain (loss) recognized in earnings on hedged items | 2 | ||
Gain (loss) recognized in earnings for ineffective portion | 0 | ||
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | 0 | ||
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 2 | ||
Derivatives designated as hedging instruments | Equity contracts | Fair value hedging | Net realized capital gains (losses) | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | -23 | ||
Gain (loss) recognized in earnings on hedged items | 22 | ||
Gain (loss) recognized in earnings for ineffective portion | 0 | ||
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | -1 | ||
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | ||
Derivatives not designated as hedging instruments | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 499 | 1,022 | -143 |
Derivatives not designated as hedging instruments | Net realized capital gains (losses) | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | -219 | 257 | -516 |
Derivatives not designated as hedging instruments | Net investment income | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 102 | 28 | 5 |
Derivatives not designated as hedging instruments | Other income (losses) | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 599 | 750 | 368 |
Derivatives not designated as hedging instruments | Policyholder benefits and claims incurred | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 17 | -13 | 0 |
Derivatives not designated as hedging instruments | Interest rate contracts | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 847 | -331 | -241 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 309 | 41 | 96 |
Derivatives not designated as hedging instruments | Equity contracts | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | -1,111 | 664 | -644 |
Embedded derivative gains (losses) | -837 | 1,200 | -170 |
Derivatives not designated as hedging instruments | Commodity contracts | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | -1 | -4 | -1 |
Derivatives not designated as hedging instruments | Credit contracts | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | 263 | 567 | 641 |
Derivatives not designated as hedging instruments | Other contracts | |||
Derivative instruments gain (loss): | |||
Gain (loss) recognized in earnings on derivatives | $192 | $85 | $6 |
DERIVATIVES_AND_HEDGE_ACCOUNTI5
DERIVATIVES AND HEDGE ACCOUNTING (Details - Global Capital Markets Derivatives) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Credit Derivatives [Line Items] | ||
Obligation to make payments on embedded credit derivatives | $0 | |
Fair value of hybrid securities | 6,100,000,000 | 6,400,000,000 |
Par value of hybrid securities | 12,300,000,000 | 13,400,000,000 |
Credit Risk-Related Contingent Features | ||
Credit Derivatives [Line Items] | ||
Collateral posted | 2,700,000,000 | 3,100,000,000 |
Aggregate fair value of net liability position | 2,500,000,000 | 2,600,000,000 |
Global Capital Markets (GCM) derivatives | Super Senior CDS | Arbitrage | ||
Credit Derivatives [Line Items] | ||
Notional amount of credit risk derivatives | 5,099,000,000 | 15,089,000,000 |
Fair Value of Derivative (Asset) Liability | -954,000,000 | -1,277,000,000 |
Unrealized market valuation gain (loss) on credit derivatives | 256,000,000 | 550,000,000 |
Global Capital Markets (GCM) derivatives | Super Senior CDS | Arbitrage | Multi-sector CDOs | ||
Credit Derivatives [Line Items] | ||
Notional amount of credit risk derivatives | 2,619,000,000 | 3,257,000,000 |
Fair Value of Derivative (Asset) Liability | -947,000,000 | -1,249,000,000 |
Unrealized market valuation gain (loss) on credit derivatives | 235,000,000 | 518,000,000 |
Additional amount paid for CDS terminated during period | 67,000,000 | |
Collateral posted | 852,000,000 | 1,100,000,000 |
Derivative weighted average maturity | 5 years | |
Global Capital Markets (GCM) derivatives | Super Senior CDS | Arbitrage | Corporate debt/CLOs | ||
Credit Derivatives [Line Items] | ||
Notional amount of credit risk derivatives | 2,480,000,000 | 11,832,000,000 |
Fair Value of Derivative (Asset) Liability | -7,000,000 | -28,000,000 |
Unrealized market valuation gain (loss) on credit derivatives | 21,000,000 | 32,000,000 |
Collateral posted | 147,000,000 | 353,000,000 |
Notional amount of CDS written on super senior tranches of CLOs | 555,000,000 | 1,000,000,000 |
Derivative weighted average maturity | 3 years | |
Notional amount of CDS terminated during period | 8,800,000,000 | |
Global Capital Markets (GCM) derivatives | Written single name CDS | ||
Credit Derivatives [Line Items] | ||
Notional amount of credit risk derivatives | 190,000,000 | 373,000,000 |
Collateral posted | 30,000,000 | 38,000,000 |
Derivative weighted average maturity | 2 years | 3 years |
Notional amount of CDS purchased offsets | 5,000,000 | 50,000,000 |
Notional amount of single name CDS maximum exposure | 185,000,000 | 323,000,000 |
Fair value of derivative liability | $25,000,000 | $32,000,000 |
GOODWILL_Details
GOODWILL (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | ||||
Goodwill Disclosure | ||||
Number of steps involved in process of impairment test | 2 | |||
Goodwill | ||||
Goodwill - gross | $4,952 | $4,946 | $4,850 | |
Accumulated impairments | -3,477 | -3,477 | -3,477 | |
Net goodwill | 1,475 | 1,469 | 1,373 | |
Increase (decrease) due to: | ||||
Acquisition | 119 | |||
Other | 49 | 6 | -23 | |
Goodwill - gross | 4,931 | 4,952 | 4,946 | |
Accumulated impairments | -3,477 | -3,477 | -3,477 | |
Net goodwill | 1,454 | 1,475 | 1,469 | |
Reportable Segments | Total AIG Property Casualty | ||||
Goodwill | ||||
Goodwill - gross | 2,450 | 2,444 | ||
Accumulated impairments | -1,266 | -1,266 | ||
Net goodwill | 1,184 | 1,178 | ||
Increase (decrease) due to: | ||||
Other | 49 | 6 | ||
Goodwill - gross | 2,401 | 2,450 | ||
Accumulated impairments | -1,266 | -1,266 | ||
Net goodwill | 1,135 | 1,184 | ||
Reportable Segments | Commercial | ||||
Goodwill | ||||
Goodwill - gross | 2,450 | 2,444 | 2,325 | |
Accumulated impairments | -1,266 | -1,266 | -1,266 | |
Net goodwill | 1,184 | 1,178 | 1,059 | |
Increase (decrease) due to: | ||||
Acquisition | 119 | |||
Other | -49 | 6 | ||
Goodwill - gross | 2,401 | 2,450 | 2,444 | |
Accumulated impairments | -1,266 | -1,266 | -1,266 | |
Net goodwill | 1,135 | 1,184 | 1,178 | |
Reportable Segments | Consumer | ||||
Goodwill | ||||
Goodwill - gross | 2,502 | 2,502 | ||
Accumulated impairments | -2,211 | -2,211 | ||
Net goodwill | 291 | 291 | ||
Increase (decrease) due to: | ||||
Acquisition | 28 | |||
Other | -23 | |||
Goodwill - gross | 2,530 | 2,502 | ||
Accumulated impairments | -2,211 | -2,211 | ||
Net goodwill | 319 | 291 | ||
Other | ||||
Goodwill | ||||
Goodwill - gross | 0 | 23 | ||
Accumulated impairments | 0 | 0 | ||
Net goodwill | 0 | 23 | ||
Increase (decrease) due to: | ||||
Acquisition | 28 | |||
Goodwill - gross | 0 | 0 | 23 | |
Accumulated impairments | 0 | 0 | 0 | |
Net goodwill | $0 | $0 | $23 |
INSURANCE_LIABILITIES_Details_
INSURANCE LIABILITIES (Details - Liability for Unpaid Losses and Loss Adjustment Expenses (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE, FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS, AND POLICYHOLDER CONTRACT DEPOSITS | |||
Gross loss reserves before reinsurance and discount, net of contractual deductible recoverable amounts due from policyholders | $12,400,000,000 | $12,000,000,000 | |
Collateral held for deductible recoverable amounts | 9,400,000,000 | 9,000,000,000 | |
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense: | |||
Liability for unpaid claims and claims adjustment expense, balance at the beginning of the year | 81,547,000,000 | 87,991,000,000 | 91,145,000,000 |
Reinsurance recoverable, balance at the beginning of the year | -17,231,000,000 | -19,209,000,000 | -20,320,000,000 |
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance | 64,316,000,000 | 68,782,000,000 | 70,825,000,000 |
Foreign exchange effect | -1,061,000,000 | -617,000,000 | -90,000,000 |
Dispositions | 0 | -79,000,000 | -11,000,000 |
Changes in net loss reserves due to retroactive asbestos reinsurance transaction | 141,000,000 | 22,000,000 | 90,000,000 |
Total | 63,396,000,000 | 68,108,000,000 | 70,814,000,000 |
Losses and loss expenses incurred | |||
Current year | 21,279,000,000 | 22,171,000,000 | 25,385,000,000 |
Prior years, other than accretion of discount | 703,000,000 | 557,000,000 | 421,000,000 |
Prior years, accretion of discount | 478,000,000 | -309,000,000 | -63,000,000 |
Total | 22,460,000,000 | 22,419,000,000 | 25,743,000,000 |
Losses and loss expenses paid | |||
Current year | 6,358,000,000 | 7,431,000,000 | 8,450,000,000 |
Prior years | 17,886,000,000 | 18,780,000,000 | 19,325,000,000 |
Total | 24,244,000,000 | 26,211,000,000 | 27,775,000,000 |
Net liability for unpaid claims and claims adjustment expense, balance at the end of the year | 61,612,000,000 | 64,316,000,000 | 68,782,000,000 |
Reinsurance recoverable, balance at the end of the year | 15,648,000,000 | 17,231,000,000 | 19,209,000,000 |
Total, balance at the end of the year | 77,260,000,000 | 81,547,000,000 | 87,991,000,000 |
Foreign exchange effect reclassified losses and loss expenses paid (current year) | 0 | ||
Decrease in foreign exchange effect | 847,000,000 | ||
Loss sensitive premium adjustment | 105,000,000 | 89,000,000 | 54,000,000 |
Excess Casualty | |||
Losses and loss expenses incurred | |||
Total | 545,000,000 | -144,000,000 | 157,000,000 |
Environmental and pollution | |||
Losses and loss expenses incurred | |||
Total | 381,000,000 | 269,000,000 | 200,000,000 |
Financial Lines | |||
Losses and loss expenses incurred | |||
Total | -195,000,000 | ||
Primary casualty | |||
Losses and loss expenses incurred | |||
Total | 135,000,000 | 498,000,000 | 531,000,000 |
Healthcare | |||
Losses and loss expenses incurred | |||
Total | $109,000,000 | ($54,000,000) | $68,000,000 |
INSURANCE_LIABILITIES_Details_1
INSURANCE LIABILITIES (Details - Discounting of Reserves) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Dec. 31, 2014 | |
Discounting of Reserves [Line Items] | ||
Net loss reserve discount | 3,100,000,000 | 3,100,000,000 |
Tabular discount rate | 3.50% | |
Property Casualty | ||
Discounting of Reserves [Line Items] | ||
Discount for workers' compensation | 852,000,000 | 852,000,000 |
Discount for workers' compensation | 2,200,000,000 | 2,200,000,000 |
Discount for asbestos | 11,000,000 | 11,000,000 |
New York | ||
Discounting of Reserves [Line Items] | ||
Nontabular discount rate | 0.00% | |
Discount rate | 5.00% | |
Pennsylvania | ||
Discounting of Reserves [Line Items] | ||
Nontabular discount rate | 0.00% | |
Pennsylvania | Accident year 2001 and prior | ||
Discounting of Reserves [Line Items] | ||
Discount rate | 6.00% | |
Pennsylvania | Accident year 2002 and subsequent years | ||
Discounting of Reserves [Line Items] | ||
Discount rate | 4.25% |
INSURANCE_LIABILITIES_Details_2
INSURANCE LIABILITIES (Details - Future Policy Benefits) (Life) | 12 Months Ended |
Dec. 31, 2014 | |
Life | |
Assumptions for liability for future life policy benefits | |
Interest rates (exclusive of immediate/terminal funding annuities), low end of range (as a percent) | 1.00% |
Interest rates (exclusive of immediate/terminal funding annuities), high end of range (as a percent) | 12.00% |
INNSURANCE_LIABILITIES_Details
INNSURANCE LIABILITIES (Details 4) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $124,613 | $122,016 |
Life | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 13,717 | 13,644 |
Assumptions for liability for policyholder contract deposits | ||
Percentage of gross insurance in force | 1.90% | |
Percentage of gross premiums and other consideration | 3.70% | |
Fixed Annuities | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 53,370 | 54,515 |
Retirement Income Solutions | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 10,040 | 6,729 |
Group Retirement | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 37,693 | 37,695 |
Institutional Markets | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 9,793 | 9,433 |
Guaranteed investment contracts | Life | ||
Assumptions for liability for policyholder contract deposits | ||
Guaranteed Investment Contract Issued | $450 |
VARIABLE_LIFE_AND_ANNUITY_CONT2
VARIABLE LIFE AND ANNUITY CONTRACTS (Details - Annuity contracts with guarantees were invested in separate account investment options) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | $71,528 | $65,206 |
Equity Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 40,811 | 40,497 |
Bonds Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 7,566 | 7,458 |
Balanced Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 22,354 | 16,384 |
Money Market Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | $797 | $867 |
VARIABLE_LIFE_AND_ANNUITY_CONT3
VARIABLE LIFE AND ANNUITY CONTRACTS (Details - GMDB, GMIB, GMWB and GMAV) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | $7,381 | $6,214 | |
Embedded derivatives | |||
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | 1,500 | 424 | |
Guaranteed minimum death benefits (GMDB) | |||
Assumptions and methodology used to determine the GMDB liability | |||
Maximum number of stochastically generated investment performance scenarios (in counts) | 1,000 | ||
Mean investment performance assumption, high end of range (as a percent) | 8.50% | ||
Volatility rate (as a percent) | 16.00% | ||
Mortality rate, low end of range (as a percent) | 85.00% | ||
Lapse rate, low end of range (as a percent) | 0.00% | ||
Lapse rate, high end of range (as a percent) | 37.00% | ||
Discount rate, low end of range (as a percent) | 3.75% | ||
Discount rate, high end of range (as a percent) | 10.00% | ||
Guaranteed minimum death benefits (GMDB) and Guaranteed minimum income benefits (GMIB) | |||
Changes in GMDB and GMIB liabilities for guarantees on variable contracts reflected in the general account | |||
Balance at the beginning of the period | 394 | 413 | 445 |
Reserve increase | 93 | 32 | 43 |
Benefits paid | 67 | 51 | 75 |
Balance at the end of the period | 420 | 394 | 413 |
Guaranteed minimum account value benefits (GMAV B) and Guaranteed minimum withdrawal benefits (GMWB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 35,000 | 28,600 | |
Net amount at risk | 414 | 63 | |
Assumptions and methodology used to determine the GMDB liability | |||
Mortality rate, low end of range (as a percent) | 92.00% | ||
Mortality rate, high end of range (as a percent) | 139.00% | ||
Guaranteed minimum account value benefits (GMAV B) and Guaranteed minimum withdrawal benefits (GMWB) | Embedded derivatives | |||
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, net asset | 957 | 37 | |
Fair value of embedded derivatives, liability | 0 | 0 | |
Variable contract, net deposits plus a minimum return | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 85 | 78 | |
Net amount at risk | 1 | 1 | |
Average attained age of contract holders by product | 62 years | 66 years | |
Variable contract, net deposits plus a minimum return | Guaranteed minimum death benefits (GMDB) | Minimum | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Range of guaranteed minimum return rates (as a percent) | 0 | 0 | |
Variable contract, net deposits plus a minimum return | Guaranteed minimum death benefits (GMDB) | Maximum | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Range of guaranteed minimum return rates (as a percent) | 0.05 | 0.05 | |
Variable annuity contract, highest contract value attained | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 17 | 15 | |
Net amount at risk | $1 | $1 | |
Average attained age of contract holders by product | 68 years | 70 years |
DEBT_Details_Total_debt_outsta
DEBT (Details - Total debt outstanding) (USD $) | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Balance at the end of the period | $31,217,000,000 | $41,693,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 31,217,000,000 | 41,693,000,000 | |
2015 | 2,018,000,000 | ||
2016 | 2,254,000,000 | ||
2017 | 2,897,000,000 | ||
2018 | 3,545,000,000 | ||
2019 | 1,179,000,000 | ||
Thereafter | 15,641,000,000 | ||
Borrowings of consolidated investments | 3,700,000,000 | ||
Long-term debt excluding borrowings of consolidated investments | 27,534,000,000 | ||
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | 58,000,000 | ||
International Lease Finance Corporation (ILFC) | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 0 | 21,400,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 0 | 21,400,000,000 | |
Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 14,000,000 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 14,000,000 | ||
Collateralized Loans and Mortgages Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 44,000,000 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 44,000,000 | ||
AIG | Series AIGFP | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 33,000,000 | 3,031,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 33,000,000 | 3,031,000,000 | |
AIG | MIP | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 2,870,000,000 | 7,963,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 2,870,000,000 | 7,963,000,000 | |
Notes and bonds payable | AIG | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 15,821,000,000 | 14,312,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 15,821,000,000 | 14,312,000,000 | |
Junior subordinated debt | AIG | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 2,466,000,000 | 5,533,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 2,466,000,000 | 5,533,000,000 | |
Other subsidiaries notes, bonds, loans and mortgages payable | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 0.06% | ||
Interest rates, high end of range (as a percent) | 5.60% | ||
Balance at the end of the period | 58,000,000 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 58,000,000 | ||
2015 | 38,000,000 | ||
2016 | 1,000,000 | ||
2017 | 1,000,000 | ||
2018 | 1,000,000 | ||
2019 | 1,000,000 | ||
Thereafter | 16,000,000 | ||
Other subsidiaries notes, bonds, loans and mortgages payable | Other Subsidiaries | |||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | 58,000,000 | ||
Other subsidiaries notes, bonds, loans and mortgages payable | Other Subsidiaries | Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 14,000,000 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 14,000,000 | ||
Other subsidiaries notes, bonds, loans and mortgages payable | Other Subsidiaries | Collateralized Loans and Mortgages Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 44,000,000 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 44,000,000 | ||
Debt issued or guaranteed | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 27,476,000,000 | 39,128,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 27,476,000,000 | 39,128,000,000 | |
2015 | 1,980,000,000 | ||
2016 | 2,253,000,000 | ||
2017 | 2,896,000,000 | ||
2018 | 3,544,000,000 | ||
2019 | 1,178,000,000 | ||
Thereafter | 15,625,000,000 | ||
General borrowings | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 19,106,000,000 | 21,199,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 19,106,000,000 | 21,199,000,000 | |
2015 | 1,097,000,000 | ||
2016 | 1,554,000,000 | ||
2017 | 510,000,000 | ||
2018 | 2,407,000,000 | ||
2019 | 998,000,000 | ||
Thereafter | 12,540,000,000 | ||
General borrowings | AIG | |||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | 0 | ||
General borrowings | AIG | Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 0 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 0 | ||
General borrowings | Notes and bonds payable | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 2.30% | ||
Interest rates, high end of range (as a percent) | 8.13% | ||
Balance at the end of the period | 15,570,000,000 | 14,062,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 15,570,000,000 | 14,062,000,000 | |
2015 | 847,000,000 | ||
2016 | 1,554,000,000 | ||
2017 | 510,000,000 | ||
2018 | 2,407,000,000 | ||
2019 | 998,000,000 | ||
Thereafter | 9,254,000,000 | ||
General borrowings | Notes and bonds payable | AIGLH | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 6.63% | ||
Interest rates, high end of range (as a percent) | 7.50% | ||
Balance at the end of the period | 284,000,000 | 299,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 284,000,000 | 299,000,000 | |
Thereafter | 284,000,000 | ||
General borrowings | Subordinated debt | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 2.38% | ||
Balance at the end of the period | 250,000,000 | 250,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 250,000,000 | 250,000,000 | |
2015 | 250,000,000 | ||
2016 | 0 | ||
General borrowings | Junior subordinated debt | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 4.88% | ||
Interest rates, high end of range (as a percent) | 8.63% | ||
Balance at the end of the period | 2,466,000,000 | 5,533,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 2,466,000,000 | 5,533,000,000 | |
Thereafter | 2,466,000,000 | ||
General borrowings | Junior subordinated debt | AIGLH | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 7.57% | ||
Interest rates, high end of range (as a percent) | 8.50% | ||
Balance at the end of the period | 536,000,000 | 1,054,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 536,000,000 | 1,054,000,000 | |
Thereafter | 536,000,000 | ||
General borrowings | Loans and mortgages payable | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 9.00% | ||
Balance at the end of the period | 0 | 1,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 0 | 1,000,000 | |
Borrowings supported by assets | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 8,370,000,000 | 17,929,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 8,370,000,000 | 17,929,000,000 | |
2015 | 883,000,000 | ||
2016 | 699,000,000 | ||
2017 | 2,386,000,000 | ||
2018 | 1,137,000,000 | ||
2019 | 180,000,000 | ||
Thereafter | 3,085,000,000 | ||
Borrowings supported by assets | Notes and bonds payable | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 0.15% | ||
Interest rates, high end of range (as a percent) | 10.40% | ||
Balance at the end of the period | 818,000,000 | 1,217,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 818,000,000 | 1,217,000,000 | |
2015 | 132,000,000 | ||
2016 | 168,000,000 | ||
2017 | 131,000,000 | ||
2018 | 153,000,000 | ||
2019 | 0 | ||
Thereafter | 234,000,000 | ||
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 0.10% | ||
Interest rates, high end of range (as a percent) | 0.24% | ||
Balance at the end of the period | 34,000,000 | 3,219,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 34,000,000 | 3,219,000,000 | |
2015 | 0 | ||
2016 | 0 | ||
2017 | 10,000,000 | ||
2018 | 0 | ||
2019 | 0 | ||
Thereafter | 24,000,000 | ||
Borrowings supported by assets | MIP notes payable | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 2.28% | ||
Interest rates, high end of range (as a percent) | 8.59% | ||
Balance at the end of the period | 2,870,000,000 | 7,963,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 2,870,000,000 | 7,963,000,000 | |
2015 | 132,000,000 | ||
2016 | 366,000,000 | ||
2017 | 2,019,000,000 | ||
2018 | 353,000,000 | ||
2019 | 0 | ||
Thereafter | 0 | ||
Borrowings supported by assets | GIAs | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 0.04% | ||
Interest rates, high end of range (as a percent) | 8.50% | ||
Balance at the end of the period | 4,648,000,000 | 5,530,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 4,648,000,000 | 5,530,000,000 | |
2015 | 619,000,000 | ||
2016 | 165,000,000 | ||
2017 | 226,000,000 | ||
2018 | 631,000,000 | ||
2019 | 180,000,000 | ||
Thereafter | 2,827,000,000 | ||
Debt not guaranteed | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 3,741,000,000 | 2,565,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 3,741,000,000 | 2,565,000,000 | |
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 58,000,000 | 656,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 58,000,000 | 656,000,000 | |
Debt not guaranteed | Debt of consolidated investments | |||
Debt Instrument [Line Items] | |||
Interest rates, low end of range (as a percent) | 0.03% | ||
Interest rates, high end of range (as a percent) | 9.06% | ||
Balance at the end of the period | 3,683,000,000 | 1,909,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 3,683,000,000 | 1,909,000,000 | |
Debt not guaranteed | Debt of consolidated investments | Life and Retirement | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 1,500,000,000 | 696,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 1,500,000,000 | 696,000,000 | |
Debt not guaranteed | Debt of consolidated investments | Property Casualty | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 122,000,000 | 58,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 122,000,000 | 58,000,000 | |
Debt not guaranteed | Debt of consolidated investments | AIG Global Real Estate Investment Corp. | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 2,000,000,000 | 1,500,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 2,000,000,000 | 1,500,000,000 | |
Debt not guaranteed | Debt of consolidated investments | AIG Credit Corp. | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 54,000,000 | 111,000,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | $54,000,000 | $111,000,000 |
DEBT_Details_Junior_subordinat
DEBT (Details - Junior subordinated debentures) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||||||||||
Net losses on extinguishment of debt | $1,268 | $742 | $34 | $238 | $192 | $81 | $38 | $340 | $2,282 | $651 | $32 |
Series A-3 Junior Subordinated Debentures | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate (as a percent) | 4.88% | 4.88% | |||||||||
Series A-2 Junior Subordinated Debentures | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate (as a percent) | 5.75% | 5.75% | |||||||||
Series A-6 Junior Subordinated Debentures | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate (as a percent) | 8.18% | 8.18% | |||||||||
Aggregate principal amount of debt redeemed | 2,400 | ||||||||||
Subordinated Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Period prior to the date of repayment, redemption or purchase within which a specified amount of net cash proceeds is to be received | 360 days | ||||||||||
General borrowings | Series A-4 Junior Subordinated Debentures | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate (as a percent) | 0.00% | 0.00% | |||||||||
Aggregate principal amount of debt redeemed | 0 | ||||||||||
Debt instrument redemption price, as a percentage of principal amount | 0.00% | ||||||||||
General borrowings | Series A-5 Junior Subordinated Debentures | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate (as a percent) | 0.00% | 0.00% | |||||||||
Aggregate principal amount of debt redeemed | $0 | ||||||||||
Debt instrument redemption price, as a percentage of principal amount | 0.00% |
DEBT_Details_AIGLH_Junior_subo
DEBT (Details - AIGLH Junior subordinated debentures) (Borrowings supported by assets, AIGLH, USD $) | Jul. 11, 2013 |
In Millions, unless otherwise specified | |
8.5 percent Junior subordinated debentures due July 2030 | |
Debt Instrument [Line Items] | |
Junior subordinated debentures liquidation value | $155 |
Interest rate (as a percent) | 8.50% |
8.125 percent Junior subordinated debentures due March 2046 | |
Debt Instrument [Line Items] | |
Junior subordinated debentures liquidation value | 245 |
Interest rate (as a percent) | 8.13% |
7.57 percent Junior subordinated debentures due December 2045 | |
Debt Instrument [Line Items] | |
Junior subordinated debentures liquidation value | $136 |
Interest rate (as a percent) | 7.57% |
DEBT_Details_Credit_facilities
DEBT (Details - Credit facilities) (5-Year Syndicated Facility, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
5-Year Syndicated Facility | |
Schedule of Debt Instruments [Line Items] | |
Line of credit facilities, term of credit agreements | 5 years |
Maximum borrowing capacity | $4,000 |
Remaining borrowing capacity | 4,000 |
Letter of credit sublimit | 0 |
Letter of credit outstanding | $0 |
CONTINGENCIES_COMMITMENTS_AND_2
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Loss Contingencies) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 22 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||||||
Dec. 17, 2010 | Dec. 31, 2014 | Nov. 29, 2012 | Apr. 08, 2013 | Oct. 22, 2014 | Jul. 15, 2014 | Sep. 16, 2013 | Jan. 06, 2015 | Nov. 15, 2013 | Mar. 11, 2013 | Nov. 21, 2011 | 23-May-14 | Oct. 29, 2013 | Feb. 25, 2010 | Sep. 30, 2012 | Oct. 31, 2014 | Dec. 31, 2013 | Mar. 20, 2009 | Nov. 25, 2008 | |
item | item | item | item | class | item | individual | complaint | complaint | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Number of states participating in the accident and health products examination | 50 | ||||||||||||||||||
Civil penalty payable | $100,000,000 | ||||||||||||||||||
Increase in the estimated reserves for incurred but not reported death claims | 507,000,000 | 391,000,000 | |||||||||||||||||
Portion of payments which represented fines and penalties | 46,500,000 | ||||||||||||||||||
Payment released workers compensation escrow accounts in satisfaction of fines, penalties and premium tax obligations | 150,000,000 | ||||||||||||||||||
Realized gains on unwinding on a position | 196,000,000 | ||||||||||||||||||
Chartis U.S. | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Settlement agreement, number of jurisdictions | 50 | ||||||||||||||||||
Civil penalty paid | 50,000,000 | ||||||||||||||||||
UGC | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Civil penalty paid | 4,500,000 | ||||||||||||||||||
Consolidated 2008 Securities Litigation | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Number of purported class action complaints | 8 | ||||||||||||||||||
Payment for legal settlement | 960,000,000 | ||||||||||||||||||
Number of similar actions | 9 | ||||||||||||||||||
Cash settlement Amount | 960,000,000 | ||||||||||||||||||
ERISA Litigation II | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Number of purported class action complaints | 8 | ||||||||||||||||||
Cash settlement Amount | 40,000,000 | ||||||||||||||||||
Canadian Securities Class Action claim | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Damages claimed | 500,000,000 | ||||||||||||||||||
Punitive damages claimed | 50,000,000 | ||||||||||||||||||
Starr International Litigation | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Percentage of ownership in AIG received by Department of the Treasury | 80.00% | ||||||||||||||||||
Number of purported classes | 2 | ||||||||||||||||||
Number of shareholders who have submitted timely and valid requests to opt into the class | 286,908 | ||||||||||||||||||
False Claims Act complaint | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Number of individuals (Relators) seeking to assert claims | 2 | ||||||||||||||||||
Damages sought, multiple of damages sustained | 3 | ||||||||||||||||||
Number Of Former Subsidiaries | 2 | ||||||||||||||||||
Period for which complaint is unsealed | 30 days | ||||||||||||||||||
False Claims Act complaint | FRBNY Credit Facility | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Decrease in the amount owed to the FRBNY | 25,000,000,000 | ||||||||||||||||||
Caremark | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Number of purported class action complaints | 2 | ||||||||||||||||||
Damages claimed | 3,200,000,000 | ||||||||||||||||||
Use of SSDMF | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Payments for regulatory assessment | 11,000,000 | ||||||||||||||||||
Subpoenas from the New York Department of Financial Services (NYDFS) | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Cash settlement Amount | 35,000,000 | ||||||||||||||||||
Subpoenas from the New York Department of Financial Services (NYDFS) | MetLife Inc. (MetLife) | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Cash settlement Amount | 50,000,000 | ||||||||||||||||||
Subpoenas from the Manhattan District Attorney's Office (NYDA) | MetLife Inc. (MetLife) | |||||||||||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||||||||||
Cash settlement Amount | $10,000,000 |
CONTINGENCIES_COMMITMENTS_AND_3
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Long term purchase commitments) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Future minimum lease payments under operating leases | |||
2015 | $349 | ||
2016 | 265 | ||
2017 | 191 | ||
2018 | 136 | ||
2019 | 98 | ||
Remaining years after 2019 | 265 | ||
Total | 1,304 | ||
Rent expense | 471 | 414 | 445 |
Held for sale | |||
Future minimum lease payments under operating leases | |||
Rent expense | $7 | $15 | $16 |
CONTINGENCIES_COMMITMENTS_AND_4
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Guarantor Obligations) (ALICO, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Guarantor Obligations [Line Items] | |
Payments made or placed in escrow accounts at end of period | $0 |
Indemnifications | |
Guarantor Obligations [Line Items] | |
Various deductible amounts under indemnifications | $0 |
EQUITY_Details_Shares_Outstand
EQUITY (Details - Shares Outstanding) | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
The following table presents a roll forward of outstanding shares: | |||||||
Shares, beginning of year | -442,582,366 | ||||||
Shares, beginning of year | 1,906,645,689 | ||||||
Shares, beginning of year | 1,464,063,323 | 1,476,321,935 | 1,896,821,482 | ||||
Issuances (in shares) | 41,551 | 58,787 | 729,308 | ||||
Shares repurchased | -88,177,903 | -12,317,399 | -421,228,855 | ||||
Shares, end of period | -530,744,521 | -442,582,366 | |||||
Shares, end of period | 1,906,671,492 | 1,906,645,689 | |||||
Shares, end of period | 1,375,926,971 | 1,464,063,323 | 1,476,321,935 | ||||
Common Stock Issued | |||||||
The following table presents a roll forward of outstanding shares: | |||||||
Shares, beginning of year | 1,906,645,689 | 1,906,611,680 | 1,906,568,099 | ||||
Issuances (in shares) | 25,803 | 34,009 | 43,581 | ||||
Shares, end of period | 1,906,671,492 | 1,906,645,689 | 1,906,611,680 | ||||
Treasury Stock | |||||||
The following table presents a roll forward of outstanding shares: | |||||||
Shares, beginning of year | 442,582,366 | 430,289,745 | 9,746,617 | ||||
Issuances (in shares) | 15,748 | -24,778 | -685,727 | ||||
Shares repurchased | -153,846,153 | -98,360,656 | -65,573,770 | -103,448,276 | -88,177,903 | -12,317,399 | -421,228,855 |
Shares, end of period | 530,744,521 | 442,582,366 | 430,289,745 | ||||
Equity Units | |||||||
The following table presents a roll forward of outstanding shares: | |||||||
Shares, end of period | 0 |
EQUITY_Details_Share_repurchas
EQUITY (Details - Share repurchases) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 20 Months Ended | ||||||||||||||
Dec. 18, 2014 | Sep. 25, 2014 | Jun. 24, 2014 | Mar. 25, 2014 | Aug. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-11 | Jan. 31, 2015 | Dec. 31, 2012 | Sep. 30, 2012 | Aug. 31, 2012 | 31-May-12 | Mar. 31, 2012 | Nov. 30, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | ||||||||||||||||||
Rollforward of preferred stock | ||||||||||||||||||
Dividend paid (in dollars per share) | $0.13 | $0.13 | $0.13 | $0.13 | ||||||||||||||
Common stock authorized to be repurchased | $1,000,000,000 | |||||||||||||||||
Aggregate purchase price of repurchased shares | 597,000,000 | |||||||||||||||||
Share Issuances and Repurchases | ||||||||||||||||||
Interest ownership by the Department of the Treasury before stock offering and sale (as a percent) | 92.00% | |||||||||||||||||
Common stock owned by the Department of the Treasury before public offering (in shares) | 1,700,000,000 | |||||||||||||||||
Shares repurchased (in shares) | 88,177,903 | 12,317,399 | 421,228,855 | |||||||||||||||
Shares repurchased | 4,698,000,000 | 597,000,000 | 13,000,000,000 | |||||||||||||||
Common stock issued by the Department of the Treasury (in shares) | 1,375,926,971 | 1,464,063,323 | 1,476,321,935 | 1,476,321,935 | 1,476,321,935 | 1,896,821,482 | ||||||||||||
Equity Units | ||||||||||||||||||
Common stock issued in connection with settlement of the stock purchase contract portion of the Equity Units (in shares) | 1,906,671,492 | 1,906,645,689 | ||||||||||||||||
Accelerated Share Repurchase Agreement [Member] | ||||||||||||||||||
Equity Units | ||||||||||||||||||
Amount paid to financial institution | 3,100,000,000 | |||||||||||||||||
AIG | ||||||||||||||||||
Share Issuances and Repurchases | ||||||||||||||||||
Proceeds from sale of common stock by the Department of the Treasury | 0 | |||||||||||||||||
Common stock issued by the Department of the Treasury (in shares) | 0 | |||||||||||||||||
AIG | Accelerated Share Repurchase Agreement [Member] | ||||||||||||||||||
Equity Units | ||||||||||||||||||
Number of accelerated stock repurchase (ASR) agreements with third-party financial institutions | 5 | |||||||||||||||||
Common Stock | ||||||||||||||||||
Rollforward of preferred stock | ||||||||||||||||||
Common stock authorized to be repurchased | 4,500,000,000 | |||||||||||||||||
Aggregate purchase price of repurchased shares | 4,900,000,000 | |||||||||||||||||
Share Issuances and Repurchases | ||||||||||||||||||
Initial public offering price (in dollars per share) | $32.50 | $32.50 | $32.50 | $30.50 | $30.50 | $29 | $32.50 | |||||||||||
Common stock sold by the Department of the Treasury (in shares) | 234,169,156 | 636,923,075 | 188,524,590 | 188,524,589 | 206,896,552 | 1,455,037,962 | ||||||||||||
Proceeds from sale of common stock by the Department of the Treasury | 7,610,000,000 | 20,700,000,000 | 5,750,000,000 | 5,750,000,000 | 6,000,000,000 | 45,810,000,000 | ||||||||||||
Shares repurchased | 0 | |||||||||||||||||
Aggregate purchase amount | 0 | |||||||||||||||||
Equity Units | ||||||||||||||||||
Common stock issued in connection with settlement of the stock purchase contract portion of the Equity Units (in shares) | 1,906,671,492 | 1,906,645,689 | 1,906,611,680 | 1,906,611,680 | 1,906,611,680 | 1,906,568,099 | ||||||||||||
Common Stock | Accelerated Share Repurchase Agreement [Member] | ||||||||||||||||||
Equity Units | ||||||||||||||||||
Percentage of share repurchased during share repurchase agreement | 70.00% | |||||||||||||||||
Number of shares received from financial institution | 53,000,000 | |||||||||||||||||
Partial receipt of shares under an ASR agreement | 9,200,000 | |||||||||||||||||
Additional shares received from financial institution | 3,500,000,000 | |||||||||||||||||
Treasury Stock | ||||||||||||||||||
Share Issuances and Repurchases | ||||||||||||||||||
Shares repurchased (in shares) | 88,177,903 | 12,317,399 | 421,228,855 | 153,846,153 | 98,360,656 | 65,573,770 | 103,448,276 | |||||||||||
Shares repurchased | 4,698,000,000 | 597,000,000 | 13,000,000,000 | 5,000,000,000 | 3,000,000,000 | 2,000,000,000 | 3,000,000,000 | |||||||||||
Equity Units | ||||||||||||||||||
Common stock issued in connection with settlement of the stock purchase contract portion of the Equity Units (in shares) | 530,744,521 | 442,582,366 | 430,289,745 | 430,289,745 | 430,289,745 | 9,746,617 | ||||||||||||
Equity Units | ||||||||||||||||||
Equity Units | ||||||||||||||||||
Number of series of debentures remarketed | 3 | |||||||||||||||||
Cash per equity unit exchange under stock purchase contract (in dollars per share) | $0 | |||||||||||||||||
Retirement of debentures | $0 | |||||||||||||||||
Common stock issued in connection with settlement of the stock purchase contract portion of the Equity Units (in shares) | 0 | 0 | 0 |
EQUITY_Details_Rollforward_of_
EQUITY (Details - Rollforward of Accumulated other comprehensive income) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | $6,360 | ||
Change in unrealized appreciation (depreciation) of investments | 5,956 | -10,411 | 7,132 |
Change in unrealized appreciation (depreciation) of investments | 91 | 416 | 2,172 |
Changes in foreign currency translation adjustments | -833 | -454 | -33 |
Change in net derivative gains (losses) arising from cash flow hedging activities | 0 | 33 | |
Deferred tax asset (liability) | -93 | 3,251 | -2,889 |
Deferred tax asset (liability), Pension and Other Postretirement Benefit Plans | 308 | -330 | 232 |
Deferred tax asset (liability), Derivatives Qualifying as Hedges | 0 | -16 | |
Deferred tax asset (liability), Foreign Currency Translation Adjustment | 1 | -102 | 33 |
Deferred tax asset (liability), Available-for-sale Securities | -418 | 3,738 | -2,252 |
Deferred tax asset (liability), Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss | 16 | -55 | -886 |
Other Comprehensive Income (Loss) | 4,257 | -6,237 | 6,096 |
Other comprehensive income (loss), Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss | 107 | 361 | 1,286 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment | 5,538 | -6,673 | 4,880 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment | -832 | -556 | 0 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges | 0 | 0 | 17 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment | -556 | 631 | -87 |
Balance, end of period, net of tax | 10,617 | 6,360 | |
Accumulated Other Comprehensive Income | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | 6,360 | 12,574 | 6,481 |
Change in unrealized appreciation (depreciation) of investments | 7,720 | -13,605 | 10,710 |
Change in deferred acquisition costs adjustment and other | -427 | 873 | -889 |
Change in future policy benefits | -1,246 | 2,737 | -517 |
Changes in foreign currency translation adjustments | -833 | -454 | -33 |
Net actuarial gain (loss) | -815 | 1,012 | -273 |
Prior service (cost) credit | -49 | -51 | -46 |
Change in net derivative gains (losses) arising from cash flow hedging activities | 33 | ||
Deferred tax asset (liability) | -93 | 3,251 | -2,889 |
Other Comprehensive Income (Loss) | 4,257 | -6,237 | 6,096 |
Noncontrolling interests | 0 | -23 | 3 |
Balance, end of period, net of tax | 10,617 | 6,360 | 12,574 |
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Recognized | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | 936 | 575 | -711 |
Change in unrealized appreciation (depreciation) of investments | 156 | 464 | 2,306 |
Change in deferred acquisition costs adjustment and other | 68 | -127 | -49 |
Change in future policy benefits | -133 | 79 | -85 |
Deferred tax asset (liability), Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss | 16 | -55 | -886 |
Other comprehensive income (loss), Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss | 107 | 361 | 1,286 |
Noncontrolling interests | 0 | ||
Balance, end of period, net of tax | 1,043 | 936 | 575 |
Unrealized Appreciation (Depreciation) of All Other Investments | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | 6,789 | 13,446 | 8,575 |
Change in unrealized appreciation (depreciation) of investments | 7,564 | -14,069 | 8,404 |
Change in deferred acquisition costs adjustment and other | -495 | 1,000 | -840 |
Change in future policy benefits | -1,113 | 2,658 | -432 |
Deferred tax asset (liability), Available-for-sale Securities | -418 | 3,738 | -2,252 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment | 5,538 | -6,673 | 4,880 |
Noncontrolling interests | 0 | -16 | 9 |
Balance, end of period, net of tax | 12,327 | 6,789 | 13,446 |
Foreign Currency Translation Adjustments | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | -952 | -403 | -409 |
Changes in foreign currency translation adjustments | -833 | -454 | -33 |
Deferred tax asset (liability), Foreign Currency Translation Adjustment | 1 | -102 | 33 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment | -832 | -556 | 0 |
Noncontrolling interests | 0 | -7 | -6 |
Balance, end of period, net of tax | -1,784 | -952 | -403 |
Net Derivative Gains (Losses) Arising From Cash Flow Hedging Activities | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | 0 | -17 | |
Change in net derivative gains (losses) arising from cash flow hedging activities | 33 | ||
Deferred tax asset (liability), Derivatives Qualifying as Hedges | 0 | -16 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges | 0 | 17 | |
Balance, end of period, net of tax | 0 | 0 | 0 |
Change in Retirement Plan Liabilities Adjustment | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | -413 | -1,044 | -957 |
Net actuarial gain (loss) | -815 | 1,012 | -273 |
Prior service (cost) credit | -49 | -51 | -46 |
Deferred tax asset (liability), Pension and Other Postretirement Benefit Plans | 308 | -330 | 232 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment | 556 | -631 | 87 |
Balance, end of period, net of tax | ($969) | ($413) | ($1,044) |
EQUITY_Details_Other_comprehen
EQUITY (Details - Other comprehensive income reclassification adjustments) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Taken | |||
Unrealized change arising during period | $119 | $507 | $2,236 |
Less: Reclassification adjustments included in net income | 28 | 91 | 64 |
Total other comprehensive income (loss), before income tax expense (benefit) | 91 | 416 | 2,172 |
Less: Income tax expense (benefit) | -16 | 55 | 886 |
Total other comprehensive income (loss), net of income tax expense (benefit) | 107 | 361 | 1,286 |
Unrealized Appreciation (Depreciation) of All Other Investments | |||
Unrealized change arising during period | 6,488 | -9,556 | 8,896 |
Less: Reclassification adjustments included in net income | 532 | 855 | 1,764 |
Total other comprehensive income (loss), before income tax expense (benefit) | 5,956 | -10,411 | 7,132 |
Less: Income tax expense (benefit) | 418 | -3,738 | 2,252 |
Total other comprehensive income (loss), net of income tax expense (benefit) | 5,538 | -6,673 | 4,880 |
Foreign Currency Translation Adjustments | |||
Unrealized change arising during period | -833 | -454 | -33 |
Less: Reclassification adjustments included in net income | 0 | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | -833 | -454 | -33 |
Less: Income tax expense (benefit) | -1 | 102 | -33 |
Total other comprehensive income (loss), net of income tax expense (benefit) | -832 | -556 | 0 |
Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities | |||
Unrealized change arising during period | 0 | -2 | |
Less: Reclassification adjustments included in net income | 0 | -35 | |
Total other comprehensive income (loss), before income tax expense (benefit) | 0 | 33 | |
Less: Income tax expense (benefit) | 0 | 16 | |
Total other comprehensive income (loss), net of income tax expense (benefit) | 0 | 0 | 17 |
Change in Retirement Plan Liabilities Adjustment | |||
Unrealized change arising during period | -866 | 851 | -406 |
Less: Reclassification adjustments included in net income | -2 | -110 | -87 |
Total other comprehensive income (loss), before income tax expense (benefit) | 864 | -961 | 319 |
Less: Income tax expense (benefit) | -308 | 330 | -232 |
Total other comprehensive income (loss), net of income tax expense (benefit) | -556 | 631 | -87 |
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 4,908 | -8,652 | 10,691 |
Less: Reclassification adjustments included in net income | 558 | 836 | 1,706 |
Total other comprehensive income (loss), before income tax expense (benefit) | 4,350 | -9,488 | 8,985 |
Less: Income tax expense (benefit) | 93 | -3,251 | 2,889 |
Other comprehensive income (loss) | $4,257 | ($6,237) | $6,096 |
EQUITY_Details_Reclassificatio
EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other realized capital gains | $956 | $2,126 | $1,916 |
Amortization of deferred acquisition costs | 5,330 | 5,157 | 5,709 |
Policyholder benefits and losses incurred | 28,281 | 29,503 | 32,036 |
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total reclassifications for the period | 558 | 836 | |
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other realized capital gains | 28 | 91 | |
Total reclassifications for the period | 28 | 91 | |
Unrealized appreciation (depreciation) of all other investments | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other realized capital gains | 669 | 2,452 | |
Amortization of deferred acquisition costs | -20 | -28 | |
Policyholder benefits and losses incurred | -117 | -1,569 | |
Total reclassifications for the period | 532 | 855 | |
Change in retirement plan liabilities adjustment | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Prior-service costs | 47 | -47 | |
Actuarial gains/(losses) | -49 | -157 | |
Total reclassifications for the period | ($2) | ($110) |
NONCONTROLLING_INTERESTS_Detai
NONCONTROLLING INTERESTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 01, 2009 | Jan. 31, 2011 | Jan. 14, 2011 | |
A rollforward of noncontrolling interests | ||||||||||||||
Balance, beginning of year | $611,000,000 | $611,000,000 | ||||||||||||
Contributions from noncontrolling interests | 17,000,000 | 33,000,000 | 80,000,000 | |||||||||||
Distributions to noncontrolling interests | -147,000,000 | -81,000,000 | -167,000,000 | |||||||||||
Consolidation (deconsolidation) | -99,000,000 | -27,000,000 | ||||||||||||
Comprehensive income (loss): | ||||||||||||||
Net income (loss) | 20,000,000 | 9,000,000 | -37,000,000 | 3,000,000 | -5,000,000 | -40,000,000 | 27,000,000 | 25,000,000 | ||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Total other comprehensive income (loss), net of tax | 10,617,000,000 | 6,360,000,000 | 10,617,000,000 | 6,360,000,000 | ||||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | -5,000,000 | -16,000,000 | 265,000,000 | |||||||||||
Balance, end of period | 374,000,000 | 611,000,000 | 374,000,000 | 611,000,000 | ||||||||||
Nonvoting, callable, junior and senior preferred interests purchased from the Federal Reserve Bank of New York by AIG and transferred to the Department of the Treasury | 20,300,000,000 | |||||||||||||
Reduction in SPV balance due to sale of AIG Star Life Insurance Co., Ltd. (AIG Star), AIG Edison Life Insurance Company (AIG Edison), Nan Shan, and MetLife | 147,000,000 | 81,000,000 | 167,000,000 | |||||||||||
International Lease Finance Corporation (ILFC) | Series A | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Dividend rate setting interval | 49 days | |||||||||||||
International Lease Finance Corporation (ILFC) | Series B | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Dividend rate setting interval | 49 days | |||||||||||||
Redeemable Noncontrolling interests | ||||||||||||||
A rollforward of noncontrolling interests | ||||||||||||||
Balance, beginning of year | 30,000,000 | 334,000,000 | 30,000,000 | 334,000,000 | 8,523,000,000 | |||||||||
Repayment to Department of the Treasury | 0 | -8,635,000,000 | ||||||||||||
Contributions from noncontrolling interests | 1,000,000 | 48,000,000 | 36,000,000 | |||||||||||
Distributions to noncontrolling interests | 0 | -167,000,000 | 68,000,000 | |||||||||||
Consolidation (deconsolidation) | -31,000,000 | -169,000,000 | ||||||||||||
Comprehensive income (loss): | ||||||||||||||
Net income (loss) | 0 | 2,000,000 | 222,000,000 | |||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Unrealized gains (losses) on investments | 0 | -16,000,000 | 4,000,000 | |||||||||||
Foreign currency translation adjustments | 0 | -2,000,000 | 0 | -2,000,000 | ||||||||||
Total other comprehensive income (loss), net of tax | 0 | -18,000,000 | 0 | -18,000,000 | 4,000,000 | |||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | -16,000,000 | 226,000,000 | |||||||||||
Other | 0 | 116,000,000 | ||||||||||||
Balance, end of period | 0 | 30,000,000 | 0 | 30,000,000 | 334,000,000 | |||||||||
Reduction in SPV balance due to sale of AIG Star Life Insurance Co., Ltd. (AIG Star), AIG Edison Life Insurance Company (AIG Edison), Nan Shan, and MetLife | 0 | 167,000,000 | -68,000,000 | |||||||||||
Redeemable Noncontrolling interests | Department of the Treasury. | ||||||||||||||
A rollforward of noncontrolling interests | ||||||||||||||
Balance, beginning of year | 8,427,000,000 | |||||||||||||
Repayment to Department of the Treasury | -8,635,000,000 | |||||||||||||
Comprehensive income (loss): | ||||||||||||||
Net income (loss) | 208,000,000 | |||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 208,000,000 | |||||||||||||
Redeemable Noncontrolling interests | Other Minority Interests Holder | ||||||||||||||
A rollforward of noncontrolling interests | ||||||||||||||
Balance, beginning of year | 30,000,000 | 334,000,000 | 30,000,000 | 334,000,000 | 96,000,000 | |||||||||
Repayment to Department of the Treasury | 0 | |||||||||||||
Contributions from noncontrolling interests | 1,000,000 | 48,000,000 | 36,000,000 | |||||||||||
Distributions to noncontrolling interests | 0 | -167,000,000 | 68,000,000 | |||||||||||
Consolidation (deconsolidation) | -31,000,000 | -169,000,000 | ||||||||||||
Comprehensive income (loss): | ||||||||||||||
Net income (loss) | 0 | 2,000,000 | 14,000,000 | |||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Unrealized gains (losses) on investments | 0 | -16,000,000 | 4,000,000 | |||||||||||
Foreign currency translation adjustments | 0 | -2,000,000 | 0 | -2,000,000 | ||||||||||
Total other comprehensive income (loss), net of tax | 0 | -18,000,000 | 0 | -18,000,000 | 4,000,000 | |||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | -16,000,000 | 18,000,000 | |||||||||||
Other | 0 | 116,000,000 | ||||||||||||
Balance, end of period | 0 | 30,000,000 | 0 | 30,000,000 | 334,000,000 | |||||||||
Reduction in SPV balance due to sale of AIG Star Life Insurance Co., Ltd. (AIG Star), AIG Edison Life Insurance Company (AIG Edison), Nan Shan, and MetLife | 0 | 167,000,000 | -68,000,000 | |||||||||||
Non-redeemable Noncontrolling interests | ||||||||||||||
A rollforward of noncontrolling interests | ||||||||||||||
Balance, beginning of year | 611,000,000 | 667,000,000 | 611,000,000 | 667,000,000 | 855,000,000 | |||||||||
Contributions from noncontrolling interests | 17,000,000 | 33,000,000 | -87,000,000 | |||||||||||
Distributions to noncontrolling interests | -147,000,000 | -81,000,000 | -27,000,000 | |||||||||||
Comprehensive income (loss): | ||||||||||||||
Net income (loss) | -5,000,000 | 5,000,000 | 40,000,000 | |||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Unrealized gains (losses) on investments | 0 | 0 | 5,000,000 | |||||||||||
Foreign currency translation adjustments | 0 | -5,000,000 | 0 | -5,000,000 | -6,000,000 | |||||||||
Total other comprehensive income (loss), net of tax | 0 | -5,000,000 | 0 | -5,000,000 | -1,000,000 | |||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | -5,000,000 | 0 | 39,000,000 | |||||||||||
Other | -3,000,000 | -8,000,000 | -113,000,000 | |||||||||||
Balance, end of period | 374,000,000 | 611,000,000 | 374,000,000 | 611,000,000 | 667,000,000 | |||||||||
Reduction in SPV balance due to sale of AIG Star Life Insurance Co., Ltd. (AIG Star), AIG Edison Life Insurance Company (AIG Edison), Nan Shan, and MetLife | 147,000,000 | 81,000,000 | 27,000,000 | |||||||||||
Non-redeemable Noncontrolling interests | Other Minority Interests Holder | ||||||||||||||
A rollforward of noncontrolling interests | ||||||||||||||
Balance, beginning of year | 611,000,000 | 667,000,000 | 611,000,000 | 667,000,000 | 855,000,000 | |||||||||
Contributions from noncontrolling interests | 17,000,000 | 33,000,000 | -87,000,000 | |||||||||||
Distributions to noncontrolling interests | -147,000,000 | -81,000,000 | -27,000,000 | |||||||||||
Comprehensive income (loss): | ||||||||||||||
Net income (loss) | -5,000,000 | 5,000,000 | 40,000,000 | |||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Unrealized gains (losses) on investments | 0 | 0 | 5,000,000 | |||||||||||
Foreign currency translation adjustments | 0 | -5,000,000 | 0 | -5,000,000 | -6,000,000 | |||||||||
Total other comprehensive income (loss), net of tax | 0 | -5,000,000 | 0 | -5,000,000 | -1,000,000 | |||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | -5,000,000 | 0 | 39,000,000 | |||||||||||
Other | -3,000,000 | -8,000,000 | -113,000,000 | |||||||||||
Balance, end of period | 374,000,000 | 611,000,000 | 374,000,000 | 611,000,000 | 667,000,000 | |||||||||
Reduction in SPV balance due to sale of AIG Star Life Insurance Co., Ltd. (AIG Star), AIG Edison Life Insurance Company (AIG Edison), Nan Shan, and MetLife | 147,000,000 | 81,000,000 | 27,000,000 | |||||||||||
Special purpose vehicles (SPVs) | ||||||||||||||
A rollforward of noncontrolling interests | ||||||||||||||
Distributions to noncontrolling interests | -12,400,000,000 | |||||||||||||
Acquisition of noncontrolling interests | -25,000,000,000 | |||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Number of wholly owned businesses transferred to newly created SPVs | 2 | |||||||||||||
Number of newly created special purpose vehicles (SPVs) | 2 | |||||||||||||
Voting interest held in SPVs (as a percent) | 100.00% | |||||||||||||
Repayment of a portion of the liquidation preference and accrued return of the ALICO SPV | 6,100,000,000 | |||||||||||||
Reduction in SPV balance due to sale of AIG Star Life Insurance Co., Ltd. (AIG Star), AIG Edison Life Insurance Company (AIG Edison), Nan Shan, and MetLife | 12,400,000,000 | |||||||||||||
Preferred interests liquidation preference | $25,000,000,000 | $25,000,000,000 | ||||||||||||
Preferred return on preferred interests through September 22, 2013 (as a percent) | 5.00% | |||||||||||||
Preferred return on preferred interests after September 22, 2013 (as a percent) | 9.00% |
EARNINGS_PER_SHARE_EPS_Details
EARNINGS PER SHARE (EPS) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator for EPS: | |||||||||||
Income from continuing operations | $7,574 | $9,008 | $3,699 | ||||||||
Less: Net income (loss) from continuing operations attributable to noncontrolling interests: | |||||||||||
Nonvoting, callable, junior and senior preferred interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 208 |
Other | 20 | 9 | -37 | 3 | -5 | -40 | 27 | 25 | -5 | 7 | 54 |
Total net income (loss) from continuing operations attributable to noncontrolling interests | -5 | 7 | 262 | ||||||||
Deemed dividends to AIG Series E and F Preferred Stock | 0 | ||||||||||
Net income (loss) attributable to AIG from continuing operations | 7,579 | 9,001 | 3,437 | ||||||||
Income (loss) from discontinued operations | -35 | 2 | 30 | -47 | 11 | -18 | 18 | 73 | -50 | 84 | 1 |
Income (loss) attributable to AIG common shareholders from discontinued operations | -50 | 84 | 1 | ||||||||
Net income attributable to AIG common shareholders | $7,529 | $9,085 | $3,438 | ||||||||
Denominator for EPS: | |||||||||||
Weighted average shares outstanding - basic | 1,391,790,420 | 1,419,239,774 | 1,442,397,111 | 1,459,249,393 | 1,468,725,573 | 1,475,053,126 | 1,476,512,720 | 1,476,471,097 | 1,427,959,799 | 1,474,171,690 | 1,687,197,038 |
Dilutive shares | 19,593,853 | 7,035,107 | 29,603 | ||||||||
Weighted average shares outstanding - diluted | 1,412,162,456 | 1,442,067,842 | 1,464,676,330 | 1,472,510,813 | 1,480,654,482 | 1,485,322,858 | 1,482,246,618 | 1,476,678,931 | 1,447,553,652 | 1,481,206,797 | 1,687,226,641 |
Basic: | |||||||||||
Income from continuing operations | $0.50 | $1.54 | $2.11 | $1.13 | $1.34 | $1.48 | $1.84 | $1.44 | $5.31 | $6.11 | $2.04 |
Income (loss) from discontinued operations | ($0.03) | $0 | $0.02 | ($0.03) | $0.01 | ($0.01) | $0.01 | $0.05 | ($0.04) | $0.05 | $0 |
Net income attributable to AIG | $5.27 | $6.16 | $2.04 | ||||||||
Diluted: | |||||||||||
Income from continuing operations | $5.24 | $6.08 | $2.04 | ||||||||
Income (loss) from discontinued operations | ($0.04) | $0.05 | $0 | ||||||||
Net Income attributable to AIG | $5.20 | $6.13 | $2.04 | ||||||||
Number of shares, warrants, and options excluded from diluted shares outstanding because the effect would have been anti-dilutive | 300,000 | 38,000,000 | 78,000,000 |
STATUTORY_FINANCIAL_DATA_AND_R2
STATUTORY FINANCIAL DATA AND RESTRICTIONS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Subsidiary Dividend Restrictions | |||
Statutory capital and surplus of consolidated insurance subsidiaries companies restricted from transfer to parent | $45,800,000,000 | ||
New York | |||
Subsidiary Dividend Restrictions | |||
Dividend restrictions, as percentage of statutory policyholders' surplus | 10.00% | ||
Dividend restrictions, as percentage of adjusted net investment income, as defined | 100.00% | ||
Non-life insurance companies | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | 4,577,000,000 | 12,282,000,000 | 4,801,000,000 |
Statutory capital and surplus | 40,738,000,000 | 39,707,000,000 | |
Aggregate minimum required statutory capital and surplus | 16,248,000,000 | 16,097,000,000 | |
Increase (decrease) in the previously reported amount of statutory net income as a result of the finalization of statutory filings | 1,100,000 | ||
Increase (decrease) in the previously reported amount of statutory surplus as a result of the finalization of statutory filings | 557,000,000 | ||
Statutory gains related to legal simplification | 8,000,000,000 | ||
Non-life insurance companies | Domestic | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | 3,377,000,000 | 11,440,000,000 | 3,701,000,000 |
Statutory capital and surplus | 28,198,000,000 | 27,685,000,000 | |
Aggregate minimum required statutory capital and surplus | 7,101,000,000 | 7,019,000,000 | |
Non-life insurance companies | Foreign | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | 1,200,000,000 | 842,000,000 | 1,100,000,000 |
Statutory capital and surplus | 12,540,000,000 | 12,022,000,000 | |
Aggregate minimum required statutory capital and surplus | 9,147,000,000 | 9,078,000,000 | |
Life insurance companies | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | 2,681,000,000 | 5,038,000,000 | 3,818,000,000 |
Statutory capital and surplus | 9,079,000,000 | 15,167,000,000 | |
Aggregate minimum required statutory capital and surplus | 3,867,000,000 | 4,332,000,000 | |
Increase (decrease) in the previously reported amount of statutory net income as a result of the finalization of statutory filings | 1,300,000,000 | ||
Increase (decrease) in the previously reported amount of statutory surplus as a result of the finalization of statutory filings | 709,000,000 | ||
Life insurance companies | Domestic | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | 2,690,000,000 | 5,047,000,000 | 3,827,000,000 |
Statutory capital and surplus | 8,642,000,000 | 15,038,000,000 | |
Aggregate minimum required statutory capital and surplus | 3,821,000,000 | 4,287,000,000 | |
Life insurance companies | Foreign | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income | -9,000,000 | -9,000,000 | -9,000,000 |
Statutory capital and surplus | 437,000,000 | 129,000,000 | |
Aggregate minimum required statutory capital and surplus | $46,000,000 | $45,000,000 |
SHAREBASED_AND_OTHER_COMPENSAT2
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Share based compensation expense) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
SHARE-BASED AND OTHER COMPENSATION PLANS | |||
Share-based compensation expense - pre-tax | $349 | $457 | $286 |
Share-based compensation expense - after tax | 227 | 297 | 186 |
Pre tax share-based compensation expense attributed to unsettled liability-classified awards | 86 | 315 | 286 |
Share price (in dollars per share) | $56.01 | $51.05 | $35.30 |
Vested stock-settled awards issued to retirement eligible employees | $120 | $101 |
SHAREBASED_AND_OTHER_COMPENSAT3
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Employee Plans, Share-settled Awards - assumptions used to estimate the fair value of PSUs) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $349 | $457 | $286 | |
Deferred stock units (DSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted under the plans | 19,434 | 25,735 | 28,477 | |
Compensation expense | 1.5 | 1.2 | 0.6 | |
Performance share units | ||||
Assumptions used to estimate the fair value of PSUs based on AIG's TSR | ||||
Expected dividend yield (as a percent) | 1.13% | 0.38% | ||
Expected volatility (as a percent) | 23.66% | 30.79% | ||
Risk-free interest rate (as a percent) | 0.76% | 0.50% | ||
2013 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for future grant | 45,000,000 | |||
Number of shares reserved for future grants | 50,206,557 | |||
Reduction in the number of shares available for grants | 1 | |||
AIG 2013 Long Term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period | 3 years | |||
Number of installments | 3 | |||
Completion of age of the employee after which the awards can be vested | 65 years | |||
AIG 2013 Long Term Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of performance period depending on which actual number of awards can be earned | 150.00% | |||
Vesting period, from date of grant | 5 years | |||
AIG 2013 Long Term Incentive Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of performance period depending on which actual number of awards can be earned | 0.00% | |||
AIG 2013 Long Term Incentive Plan | Vesting on January 1 from the next three years of immediately following the end of the performance period | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, from date of grant | 2 years | |||
AIG 2010 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for future grant | 60,000,000 | |||
Number of shares reserved for future grants | 0 | |||
Reduction in the number of shares available for grants | 1 | |||
SICO Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payments for various benefits provided under the plan | $0 | |||
SICO Plans | Performance share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted under the plans | 0 |
SHAREBASED_AND_OTHER_COMPENSAT4
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Share-settled Awards - Outstanding share-settled awards) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
PSUs | |
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |
Unrecognized Compensation Cost | $185 |
Weighted-Average Period | 1 year 3 months 11 days |
Expected Period | 4 years |
Restricted stock | |
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |
Unrecognized Compensation Cost | $19 |
Weighted-Average Period | 5 years 3 months 11 days |
Expected Period | 25 years |
AIG Plans | PSUs | |
Change in number of shares | |
Unvested at the beginning of the period (in shares) | 5,195,408 |
Granted (in shares) | 6,882,136 |
Vested (in shares) | 3,566,014 |
Forfeited (in shares) | 408,821 |
Unvested at the end of the period (in shares) | 8,102,709 |
Change in Weighted Average Grant-Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $36.92 |
Granted (in dollars per share) | $48.50 |
Vested (in dollars per share) | $45.21 |
Forfeited (in dollars per share) | $41.59 |
Unvested at the end of the period (in dollars per share) | $42.89 |
SICO Plans | PSUs | |
Change in number of shares | |
Unvested at the beginning of the period (in shares) | 85,949 |
Granted (in shares) | 0 |
Vested (in shares) | 23,494 |
Forfeited (in shares) | 4,143 |
Unvested at the end of the period (in shares) | 58,312 |
Change in Weighted Average Grant-Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $1,195.05 |
Granted (in dollars per share) | $0 |
Vested (in dollars per share) | $85.60 |
Forfeited (in dollars per share) | $1,181.04 |
Unvested at the end of the period (in dollars per share) | $1,191.01 |
SHAREBASED_AND_OTHER_COMPENSAT5
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Roll forward of stock option activity) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Stock options activity | ||
Exercisable at beginning of year (in shares) | 289,790 | |
Expired (in shares) | -87,515 | |
Exercisable at end of year (in shares) | 202,275 | 289,790 |
Stock options, Weighted Average Exercise Price | ||
Exercisable at beginning of year (in dollars per share) | $1,113.99 | |
Expired (in dollars per share) | $1,290.22 | |
Exercisable at end of year (in dollars per share) | $1,037.74 | $1,113.99 |
Stock options, Weighted Average Remaining Contractual Life | ||
Exercisable at beginning of year | 2 years 6 months 29 days | 2 years 5 months 26 days |
Exercisable at end of year | 2 years 6 months 29 days | 2 years 5 months 26 days |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Vesting percentage per year | 25.00% | |
Expiration period | 10 years | |
Shares granted under the plans | 0 | |
Shares issued in connection with previous exercises of options with delivery deferred | 0 | |
Aggregate intrinsic value for unexercised options | $0 |
SHAREBASED_AND_OTHER_COMPENSAT6
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Cash-settled Awards) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash paid to settle awards | $120 | $101 | |
Compensation expense | 349 | 457 | 286 |
Long Term Incentive Plans 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 57 | 249 | 189 |
Percentage of outstanding awards that will vest once the service requirements are satisfied | 100.00% | ||
Contingent performance measurement period | 2 years | ||
Long Term Incentive Plans 2012 [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contingent performance target amount | 2 | ||
Contingent performance cash portion maximum period | 2 years | ||
Long Term Incentive Plans 2012 [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contingent performance target amount | 0 | ||
Stock Salary Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash paid to settle awards | 89 | 180 | 111 |
Compensation expense | $7 | $73 | $173 |
Number of vested but unsettled RSUs | 742,317 | ||
TARP RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Installment percentage for award settlement | 25.00% | 50.00% | |
SARs | Long Term Incentive Plans 2012 [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contingent performance cash portion maximum period | 2 years |
SHAREBASED_AND_OTHER_COMPENSAT7
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Cash-settled Awards - Roll forward of SARs and cash-settled RSUs (excluding stock salary) as well as the related expenses) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Change in SARs (based on target amounts) as well as the related expenses | ||||
Compensation expense | $349 | $457 | $286 | |
Other RSUs | ||||
Change in SARs (based on target amounts) as well as the related expenses | ||||
Unvested at the beginning of the period (in shares) | 1,563,687 | |||
Vested (in shares) | 382,468 | |||
Forfeited (in shares) | 15,687 | |||
Unvested at the end of the period (in shares) | 1,165,532 | 1,165,532 | ||
Compensation expense | 31 | |||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | ||||
Unrecognized Compensation Cost | 3 | |||
Weighted-Average Period | 6 months 18 days | |||
TARP RSUs | ||||
Change in SARs (based on target amounts) as well as the related expenses | ||||
Unvested at the beginning of the period (in shares) | 857,579 | |||
Vested (in shares) | 529,049 | |||
Forfeited (in shares) | 89,417 | |||
Unvested at the end of the period (in shares) | 239,113 | 239,113 | ||
Compensation expense | 12 | |||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | ||||
Unrecognized Compensation Cost | 13 | |||
Weighted-Average Period | 7 months 10 days | |||
SARs | ||||
Change in SARs (based on target amounts) as well as the related expenses | ||||
Unvested at the beginning of the period (in shares) | 8,966,246 | |||
Vested (in shares) | 5,521,171 | |||
Forfeited (in shares) | 160,166 | |||
Unvested at the end of the period (in shares) | 3,284,909 | 3,284,909 | ||
Compensation expense | $36 | |||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | ||||
Strike price (in dollars per share) | $37.40 | |||
Average closing price | $55.29 |
EMPLOYEE_BENEFITS_Details_Pens
EMPLOYEE BENEFITS (Details - Pension and Postretirement Plans) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||
Total amounts recognized | $864 | ($961) | $319 |
U.S. Pension Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | 4,882 | 5,161 | |
Service cost | 173 | 205 | 154 |
Interest cost | 228 | 201 | 200 |
Actuarial (gain) loss | 780 | -454 | |
Benefits paid: | |||
AIG assets | -15 | -14 | |
Plan assets | -279 | -217 | |
Plan amendment | 0 | 0 | |
Curtailments | 0 | 0 | |
Settlements | 0 | 0 | |
Foreign exchange effect | 0 | 0 | |
Other | 0 | 0 | |
Projected benefit obligation, end of year | 5,769 | 4,882 | 5,161 |
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 4,024 | 3,720 | |
Actual return on plan assets, net of expenses | 266 | 520 | |
AIG contributions | 115 | 15 | |
Benefits paid: | |||
AIG assets | -15 | -14 | |
Plan assets | -279 | -217 | |
Settlements | 0 | 0 | |
Foreign exchange effect | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets, end of year | 4,111 | 4,024 | 3,720 |
Funded status, end of year | -1,658 | -858 | |
Amounts recognized in the consolidated balance sheet: | |||
Assets | 0 | 0 | |
Liabilities | -1,658 | -858 | |
Total amounts recognized | -1,658 | -858 | |
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||
Net gain (loss) | -1,667 | -908 | |
Prior service (cost) credit | 200 | 234 | |
Total amounts recognized | -1,467 | -674 | |
Projected benefit obligation for unfunded plan | 325 | 276 | |
U.S. Pension Plans | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Period of service after which plan gets vested | 0 years | ||
Non U.S. Pension Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | 1,072 | 1,205 | |
Service cost | 42 | 47 | 53 |
Interest cost | 29 | 29 | 34 |
Actuarial (gain) loss | 114 | 13 | |
Benefits paid: | |||
AIG assets | -15 | -13 | |
Plan assets | -24 | -27 | |
Plan amendment | -1 | 0 | |
Curtailments | 0 | -1 | |
Settlements | -9 | -35 | |
Foreign exchange effect | -107 | -126 | |
Other | -2 | -20 | |
Projected benefit obligation, end of year | 1,099 | 1,072 | 1,205 |
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 738 | 727 | |
Actual return on plan assets, net of expenses | 71 | 92 | |
AIG contributions | 67 | 87 | |
Benefits paid: | |||
AIG assets | -15 | -13 | |
Plan assets | -24 | -27 | |
Settlements | -8 | -35 | |
Foreign exchange effect | -75 | -93 | |
Other | -46 | 0 | |
Fair value of plan assets, end of year | 708 | 738 | 727 |
Funded status, end of year | -391 | -334 | |
Amounts recognized in the consolidated balance sheet: | |||
Assets | 46 | 91 | |
Liabilities | -437 | -425 | |
Total amounts recognized | -391 | -334 | |
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||
Net gain (loss) | -227 | -204 | |
Prior service (cost) credit | 11 | 14 | |
Total amounts recognized | -216 | -190 | |
Projected benefit obligation for unfunded plan | 295 | 265 | |
Postretirement Plans | |||
Change in plan assets: | |||
AIG contributions | 100 | ||
U.S. Postretirement Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | 217 | 255 | |
Service cost | 4 | 5 | 5 |
Interest cost | 9 | 8 | 11 |
Actuarial (gain) loss | 10 | -41 | |
Benefits paid: | |||
AIG assets | -11 | -10 | |
Plan assets | 0 | 0 | |
Plan amendment | 0 | 0 | |
Curtailments | 0 | 0 | |
Settlements | 0 | 0 | |
Foreign exchange effect | 0 | 0 | |
Other | 0 | 0 | |
Projected benefit obligation, end of year | 229 | 217 | 255 |
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 0 | 0 | |
Actual return on plan assets, net of expenses | 0 | 0 | |
AIG contributions | 11 | 10 | |
Benefits paid: | |||
AIG assets | -11 | -10 | |
Plan assets | 0 | 0 | |
Settlements | 0 | 0 | |
Foreign exchange effect | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets, end of year | 0 | 0 | 0 |
Funded status, end of year | -229 | -217 | |
Amounts recognized in the consolidated balance sheet: | |||
Assets | 0 | 0 | |
Liabilities | -229 | -217 | |
Total amounts recognized | -229 | -217 | |
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||
Net gain (loss) | -9 | 1 | |
Prior service (cost) credit | 24 | 35 | |
Total amounts recognized | 15 | 36 | |
Non U.S. Postretirement Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | 52 | 66 | |
Service cost | 2 | 3 | 3 |
Interest cost | 2 | 2 | 2 |
Actuarial (gain) loss | 11 | -15 | |
Benefits paid: | |||
AIG assets | -1 | -1 | |
Plan assets | 0 | 0 | |
Plan amendment | 0 | 0 | |
Curtailments | 0 | -3 | |
Settlements | 0 | 0 | |
Foreign exchange effect | -2 | -1 | |
Other | 0 | 1 | |
Projected benefit obligation, end of year | 64 | 52 | 66 |
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 0 | 0 | |
Actual return on plan assets, net of expenses | 0 | 0 | |
AIG contributions | 1 | 1 | |
Benefits paid: | |||
AIG assets | -1 | -1 | |
Plan assets | 0 | 0 | |
Settlements | 0 | 0 | |
Foreign exchange effect | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets, end of year | 0 | 0 | 0 |
Funded status, end of year | -64 | -52 | |
Amounts recognized in the consolidated balance sheet: | |||
Assets | 0 | 0 | |
Liabilities | -64 | -52 | |
Total amounts recognized | -64 | -52 | |
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||
Net gain (loss) | -8 | 3 | |
Prior service (cost) credit | 1 | 1 | |
Total amounts recognized | ($7) | $4 |
EMPLOYEE_BENEFITS_Details_Accu
EMPLOYEE BENEFITS (Details - Accumulated benefit obligations for U.S. and non-U.S. pension benefit plans) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $5,601 | $4,683 |
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 5,769 | 4,882 |
Accumulated benefit obligation | 5,601 | 4,683 |
Fair value of plan assets | 4,111 | 4,024 |
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 5,769 | 4,882 |
Accumulated benefit obligation | 5,601 | 4,683 |
Fair value of plan assets | 4,111 | 4,024 |
Non U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 1,040 | 1,000 |
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 843 | 806 |
Accumulated benefit obligation | 746 | 704 |
Fair value of plan assets | 342 | 330 |
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 757 | 752 |
Accumulated benefit obligation | 740 | 703 |
Fair value of plan assets | $329 | $327 |
EMPLOYEE_BENEFITS_Details_Proj
EMPLOYEE BENEFITS (Details - Projected benefit obligation and the accumulated benefit obligation was in excess of the related plan assets and components of net periodic benefit cost ) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | |||
Net gain (loss) | ($10) | ||
Prior service credit | 35 | ||
Aggregate net loss and prior service credit | 141 | ||
Pension expense and effect of change in pension expense due to change in discount rate or expected long-term rate of return | |||
Increase in expense due to decrease of 100 basis point in discount rate | 1.00% | ||
Decrease in expense due to increase of 100 basis point in discount rate | 1.00% | ||
U.S. Pension Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 173 | 205 | 154 |
Interest cost | 228 | 201 | 200 |
Expected return on assets | -288 | -257 | -240 |
Amortization of prior service (credit) cost | -33 | -33 | -33 |
Amortization of net (gain) loss | 42 | 138 | 118 |
Curtailment (gain) loss | 0 | 0 | -2 |
Net settlement (gain) loss | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net periodic benefit cost | 122 | 254 | 197 |
Total recognized in Accumulated other comprehensive income (loss) | -793 | 823 | -250 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | -915 | 569 | -447 |
Pension expense and effect of change in pension expense due to change in discount rate or expected long-term rate of return | |||
Estimated pension expense | 289 | ||
Increase in expense due to decrease of 100 basis point in expected long-term rate of return | 104 | ||
Decrease in expense due to increase of 100 basis point in expected long-term rate of return | 95 | ||
Non U.S. Pension Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 42 | 47 | 53 |
Interest cost | 29 | 29 | 34 |
Expected return on assets | -22 | -19 | -20 |
Amortization of prior service (credit) cost | -3 | -3 | -4 |
Amortization of net (gain) loss | 7 | 13 | 13 |
Curtailment (gain) loss | 1 | -1 | 1 |
Net settlement (gain) loss | 0 | 5 | 4 |
Other | 0 | 1 | 0 |
Net periodic benefit cost | 54 | 72 | 81 |
Total recognized in Accumulated other comprehensive income (loss) | -40 | 103 | -36 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | -94 | 31 | -117 |
Pension expense and effect of change in pension expense due to change in discount rate or expected long-term rate of return | |||
Estimated pension expense | 289 | ||
Increase in expense due to decrease of 100 basis point in expected long-term rate of return | 47 | ||
Decrease in expense due to increase of 100 basis point in expected long-term rate of return | 47 | ||
Postretirement Plans | Maximum | |||
Estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | |||
Aggregate net loss and prior service credit | 10 | ||
U.S. Postretirement Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 4 | 5 | 5 |
Interest cost | 9 | 8 | 11 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | -11 | -11 | -10 |
Amortization of net (gain) loss | 0 | 1 | 0 |
Curtailment (gain) loss | 0 | 0 | 0 |
Net settlement (gain) loss | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net periodic benefit cost | 2 | 3 | 6 |
Total recognized in Accumulated other comprehensive income (loss) | -21 | 30 | -23 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | -23 | 27 | -29 |
Non U.S. Postretirement Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 2 | 3 | 3 |
Interest cost | 2 | 2 | 2 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | 0 | 0 | 0 |
Amortization of net (gain) loss | 0 | 0 | 0 |
Curtailment (gain) loss | 0 | -2 | -1 |
Net settlement (gain) loss | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net periodic benefit cost | 4 | 3 | 4 |
Total recognized in Accumulated other comprehensive income (loss) | -11 | 16 | -11 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | ($15) | $13 | ($15) |
EMPLOYEE_BENEFITS_Details_Weig
EMPLOYEE BENEFITS (Details - Weighted average assumptions used to determine the benefit obligations) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Pension Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 3.94% | 4.83% | |
Discount rate used to adjust for time value of money for retirement and postretirement plans (as a percent) | 3.40% | 3.50% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 4.83% | 3.93% | 4.62% |
Rate of compensation increase (as a percent) | 3.50% | 4.00% | 4.00% |
Expected return on assets (as a percent) | 7.25% | 7.25% | 7.25% |
Discount Rate Methodology | |||
Discount rate (as a percent) | 3.95% | 4.84% | |
Plan Assets | |||
Number of shares of AIG common stock included in plans assets | 0 | 0 | |
Non U.S. Pension Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 2.33% | 2.77% | |
Discount rate used to adjust for time value of money for retirement and postretirement plans (as a percent) | 2.89% | 2.89% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 2.77% | 2.62% | 3.02% |
Rate of compensation increase (as a percent) | 2.89% | 2.86% | 2.94% |
Expected return on assets (as a percent) | 2.93% | 2.60% | 2.91% |
Plan Assets | |||
Number of shares of AIG common stock included in plans assets | 0 | 0 | |
Japanese Non-U.S. Pension Plans | |||
Discount Rate Methodology | |||
Projected benefit obligation to total projected benefit obligations (as a percent) | 47.00% | 51.00% | |
Weighted average discount rate (as a percent) | 1.22% | 1.39% | |
U.S. Postretirement Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 3.78% | 4.59% | |
Assumed health care cost trend rates | |||
Ultimate rate to which cost increase is assumed to decline (as a percent) | 4.50% | 4.50% | |
Effect of one percent point change in the assumed healthcare cost trend rate on postretirement benefit obligations | |||
One percent increase | 5 | 6 | |
One percent decrease | -5 | -3 | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 4.59% | 3.67% | 4.51% |
U.S. Postretirement Plans | Medical (before age 65) | |||
Assumed health care cost trend rates | |||
Ultimate rate to which cost increase is assumed to decline (as a percent) | 7.07% | 7.21% | |
Year in which the ultimate trend rate is reached: | 2027 | 2027 | |
U.S. Postretirement Plans | Medical (age 65 and older) | |||
Assumed health care cost trend rates | |||
Ultimate rate to which cost increase is assumed to decline (as a percent) | 6.75% | 6.80% | |
Year in which the ultimate trend rate is reached: | 2027 | 2027 | |
Non U.S. Postretirement Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 4.04% | 4.77% | |
Discount rate used to adjust for time value of money for retirement and postretirement plans (as a percent) | 3.29% | 3.34% | |
Effect of one percent point change in the assumed healthcare cost trend rate on postretirement benefit obligations | |||
One percent increase | 12 | 11 | |
One percent decrease | -12 | -7 | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 4.77% | 3.45% | 4.19% |
Rate of compensation increase (as a percent) | 3.34% | 3.55% | 3.61% |
EMPLOYEE_BENEFITS_Details_Assu
EMPLOYEE BENEFITS (Details - Assumed health care cost trend rates) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 100.00% | |||
Actual allocation (as a percent) | 100.00% | 100.00% | ||
Expected weighted average long-term rate of return plan assets (as a percent) | 7.25% | 7.25% | 7.25% | |
Period of review and revision of long-term strategic asset allocation | 3 years | |||
U.S. Pension Plans | Equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 42.00% | |||
Actual allocation (as a percent) | 55.00% | 56.00% | ||
U.S. Pension Plans | Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 27.00% | |||
Actual allocation (as a percent) | 28.00% | 25.00% | ||
U.S. Pension Plans | Alternative investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 31.00% | |||
Actual allocation (as a percent) | 17.00% | 19.00% | ||
Non U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 100.00% | |||
Actual allocation (as a percent) | 100.00% | 100.00% | ||
Expected weighted average long-term rate of return plan assets (as a percent) | 2.93% | 2.60% | 2.91% | |
Non U.S. Pension Plans | Equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 35.00% | |||
Actual allocation (as a percent) | 50.00% | 45.00% | ||
Non U.S. Pension Plans | Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 45.00% | |||
Actual allocation (as a percent) | 35.00% | 37.00% | ||
Non U.S. Pension Plans | Alternative investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 19.00% | |||
Actual allocation (as a percent) | 8.00% | 6.00% | ||
Non U.S. Pension Plans | Cash & cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation (as a percent) | 1.00% | |||
Actual allocation (as a percent) | 7.00% | 12.00% | ||
Japan's pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual allocation (as a percent) | 55.00% | 60.00% | ||
Expected weighted average long-term rate of return plan assets (as a percent) | 1.24% | 1.15% | ||
Period of review and revision of long-term strategic asset allocation | 5 years |
EMPLOYEE_BENEFITS_Details_Asse
EMPLOYEE BENEFITS (Details - Assets Measured at Fair Value) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $4,111 | $4,024 | $3,720 |
U.S. Pension Plans | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 80 | 137 | |
U.S. Pension Plans | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,483 | 2,060 | |
U.S. Pension Plans | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 788 | 207 | |
U.S. Pension Plans | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 776 | 711 | |
U.S. Pension Plans | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 347 | 281 | |
U.S. Pension Plans | Fixed maturity securities: Mortgage and other asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 7 | |
U.S. Pension Plans | Other investment types: Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 373 | 332 | |
U.S. Pension Plans | Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 14 | |
U.S. Pension Plans | Other investment types: Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 228 | 248 | |
U.S. Pension Plans | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 26 | 27 | |
U.S. Pension Plans | Other investment types: Annuity contracts | US Life | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 26 | 27 | |
U.S. Pension Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,115 | 2,180 | |
U.S. Pension Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 80 | 137 | |
U.S. Pension Plans | Level 1 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,244 | 1,840 | |
U.S. Pension Plans | Level 1 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 787 | 189 | |
U.S. Pension Plans | Level 1 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 1 | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 1 | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 1 | Fixed maturity securities: Mortgage and other asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 1 | Other investment types: Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 1 | Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 14 | |
U.S. Pension Plans | Level 1 | Other investment types: Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 1 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,724 | 1,552 | |
U.S. Pension Plans | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 2 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 239 | 220 | |
U.S. Pension Plans | Level 2 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 18 | |
U.S. Pension Plans | Level 2 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 768 | 702 | |
U.S. Pension Plans | Level 2 | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 2 | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 347 | 281 | |
U.S. Pension Plans | Level 2 | Fixed maturity securities: Mortgage and other asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 7 | |
U.S. Pension Plans | Level 2 | Other investment types: Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 337 | 297 | |
U.S. Pension Plans | Level 2 | Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
U.S. Pension Plans | Level 2 | Other investment types: Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 2 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 26 | 27 | |
U.S. Pension Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 272 | 292 | 236 |
U.S. Pension Plans | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 3 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 9 | |
U.S. Pension Plans | Level 3 | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 3 | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 3 | Fixed maturity securities: Mortgage and other asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Level 3 | Other investment types: Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 36 | 35 | |
U.S. Pension Plans | Level 3 | Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
U.S. Pension Plans | Level 3 | Other investment types: Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 228 | 248 | 225 |
U.S. Pension Plans | Level 3 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 708 | 738 | 727 |
Non U.S. Pension Plans | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 50 | 92 | |
Non U.S. Pension Plans | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 30 | 26 | |
Non U.S. Pension Plans | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 322 | 301 | |
Non U.S. Pension Plans | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 162 | 164 | |
Non U.S. Pension Plans | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 61 | 82 | |
Non U.S. Pension Plans | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27 | 29 | |
Non U.S. Pension Plans | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 56 | 44 | |
Non U.S. Pension Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 356 | 373 | |
Non U.S. Pension Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 50 | 92 | |
Non U.S. Pension Plans | Level 1 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 30 | 26 | |
Non U.S. Pension Plans | Level 1 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 274 | 254 | |
Non U.S. Pension Plans | Level 1 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 1 | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
Non U.S. Pension Plans | Level 1 | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 1 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 1 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 279 | 302 | |
Non U.S. Pension Plans | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 2 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 2 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 48 | 47 | |
Non U.S. Pension Plans | Level 2 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 2 | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 160 | 163 | |
Non U.S. Pension Plans | Level 2 | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 61 | 82 | |
Non U.S. Pension Plans | Level 2 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 10 | |
Non U.S. Pension Plans | Level 2 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 73 | 63 | 70 |
Non U.S. Pension Plans | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 17 | 19 | |
Non U.S. Pension Plans | Level 3 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $56 | $44 | $43 |
EMPLOYEE_BENEFITS_Details_Chan
EMPLOYEE BENEFITS (Details - Changes in Level 3 fair value measurements) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Changes in Level 3 fair value measurements | ||
Purchases | $8,678 | $10,813 |
Sales | -554 | -1,041 |
Settlements | -6,959 | -7,444 |
U.S. Pension Plans | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 4,024 | 3,720 |
Net Realized and Unrealized Gains (Losses) | 266 | 520 |
Fair value of plan assets, end of year | 4,111 | 4,024 |
U.S. Pension Plans | Hedge funds: | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, end of year | 373 | 332 |
U.S. Pension Plans | Fixed maturity securities: Mortgage and other asset-backed securities | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, end of year | 6 | 7 |
U.S. Pension Plans | Private equity funds: | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, end of year | 228 | 248 |
U.S. Pension Plans | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, end of year | 26 | 27 |
U.S. Pension Plans | Level 3 | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 292 | 236 |
Net Realized and Unrealized Gains (Losses) | 16 | 5 |
Purchases | 106 | 46 |
Sales | -157 | -28 |
Settlements | 0 | -2 |
Transfers In | 15 | 35 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 272 | 292 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of year | 10 | -17 |
U.S. Pension Plans | Level 3 | Fixed maturity securities: U.S. investment grade | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 9 | 11 |
Net Realized and Unrealized Gains (Losses) | 2 | -2 |
Purchases | 18 | 2 |
Sales | -21 | -2 |
Settlements | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 8 | 9 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of year | 1 | -3 |
U.S. Pension Plans | Level 3 | Hedge funds: | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 35 | |
Net Realized and Unrealized Gains (Losses) | 3 | |
Purchases | 15 | |
Sales | -32 | |
Settlements | 0 | |
Transfers In | 15 | |
Transfers Out | 0 | |
Fair value of plan assets, end of year | 36 | |
Changes in Unrealized Gains (Losses) on Instruments Held at End of year | -1 | |
U.S. Pension Plans | Level 3 | Fixed maturity securities: Mortgage and other asset-backed securities | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, end of year | 0 | 0 |
U.S. Pension Plans | Level 3 | Private equity funds: | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 248 | 225 |
Net Realized and Unrealized Gains (Losses) | 11 | 7 |
Purchases | 73 | 44 |
Sales | -104 | -26 |
Settlements | 0 | -2 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 228 | 248 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of year | 10 | -14 |
U.S. Pension Plans | Level 3 | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, end of year | 0 | 0 |
Non U.S. Pension Plans | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 738 | 727 |
Net Realized and Unrealized Gains (Losses) | 71 | 92 |
Fair value of plan assets, end of year | 708 | 738 |
Non U.S. Pension Plans | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, end of year | 56 | 44 |
Non U.S. Pension Plans | Level 3 | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 63 | 70 |
Net Realized and Unrealized Gains (Losses) | 9 | 4 |
Purchases | 3 | 1 |
Sales | -2 | -9 |
Settlements | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | -3 |
Fair value of plan assets, end of year | 73 | 63 |
Non U.S. Pension Plans | Level 3 | Other fixed income securities | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 19 | 27 |
Net Realized and Unrealized Gains (Losses) | 0 | 1 |
Purchases | 0 | 0 |
Sales | -2 | -8 |
Settlements | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | -1 |
Fair value of plan assets, end of year | 17 | 19 |
Non U.S. Pension Plans | Level 3 | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 44 | 43 |
Net Realized and Unrealized Gains (Losses) | 9 | 3 |
Purchases | 3 | 1 |
Sales | 0 | -1 |
Settlements | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | -2 |
Fair value of plan assets, end of year | $56 | $44 |
EMPLOYEE_BENEFITS_Details_Expe
EMPLOYEE BENEFITS (Details - Expected Cash Flows) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Expected future benefit payments, net of participants' contributions | ||||
Pre-tax expense associated with defined contribution plan | $156 | $155 | $133 | |
DEFINED CONTRIBUTION PLANS | ||||
Maximum percentage of participant contributions eligible for employer contribution match, towards defined contribution plan | 100.00% | |||
Percentage of employer's contribution on employee's matching contribution | 6.00% | |||
Company's maximum contribution as percentage of employee's annual salary | 0.00% | |||
Pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated employer contribution | 173 | |||
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 115 | 15 | ||
Expected future benefit payments, net of participants' contributions | ||||
2014 | 353 | |||
2015 | 363 | |||
2016 | 391 | |||
2017 | 395 | |||
2018 | 402 | |||
2019-2023 | 2,036 | |||
Non U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 67 | 87 | ||
Expected future benefit payments, net of participants' contributions | ||||
2014 | 39 | |||
2015 | 35 | |||
2016 | 39 | |||
2017 | 40 | |||
2018 | 47 | |||
2019-2023 | 236 | |||
Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum required cash contributions | 0 | |||
AIG contributions | 100 | |||
U.S. Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 11 | 10 | ||
Expected future benefit payments, net of participants' contributions | ||||
2014 | 15 | |||
2015 | 15 | |||
2016 | 16 | |||
2017 | 17 | |||
2018 | 18 | |||
2019-2023 | 96 | |||
Non U.S. Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 1 | 1 | ||
Expected future benefit payments, net of participants' contributions | ||||
2014 | 1 | |||
2015 | 1 | |||
2016 | 1 | |||
2017 | 2 | |||
2018 | 2 | |||
2019-2023 | $11 |
OWNERSHIP_Details
OWNERSHIP (Details) | Dec. 31, 2014 |
Fairholme Funds, Fairholme Capital Management and Mr. Berkowitz | After amendment | |
Beneficial Ownership [Line Items] | |
Common stock and warrants deemed beneficially held | 75,755,659 |
Ownership interest (as a percent) | 5.30% |
Common stock deemed to be beneficially owned (in shares) | 51,283,896 |
Warrants deemed beneficially held | 24,471,763 |
The Vanguard Group | |
Beneficial Ownership [Line Items] | |
Common stock and warrants deemed beneficially held | 71,820,823 |
Ownership interest (as a percent) | 5.10% |
Blackrock, Inc | After amendment | |
Beneficial Ownership [Line Items] | |
Common stock and warrants deemed beneficially held | 87,211,630 |
Ownership interest (as a percent) | 6.20% |
Department of the Treasury | Warrants | |
Beneficial Ownership [Line Items] | |
Number of series of warrants owned | 2 |
INCOME_TAXES_Details_Income_lo
INCOME TAXES (Details - Income (loss) from continuing operations and income tax expense (benefit)) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income (loss) from continuing operations before income tax expense (benefit) | |||
U.S. | $8,250 | $8,058 | ($948) |
Foreign | 2,251 | 1,310 | 3,839 |
Income from continuing operations before income tax expense (benefit) | 10,501 | 9,368 | 2,891 |
Foreign: | |||
Current | 473 | 549 | 484 |
Deferred | 154 | -442 | -275 |
U.S.: | |||
Current | 115 | 131 | 278 |
Deferred | 2,185 | 122 | -1,295 |
Income tax expense (benefit) | 2,927 | 360 | -808 |
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, pre-tax income (loss) | |||
Consolidated total amounts | 10,524 | 9,518 | 2,891 |
Loss from continuing operations before income tax expense (benefit) and equity in earnings of subsidiaries | 10,501 | 9,368 | 2,891 |
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, tax expense/benefit | |||
U.S. federal income tax at statutory rate | 3,683 | 3,331 | 1,012 |
Consolidated total amounts | 3,000 | 426 | -808 |
Income tax expense (benefit) | 2,927 | 360 | -808 |
Adjustments: | |||
Tax exempt interest | -236 | -298 | -302 |
Investment in subsidiaries and partnerships | 0 | 0 | -26 |
Uncertain tax positions | -81 | 632 | 446 |
Dividends received deduction | -62 | -75 | -58 |
Effect of foreign operations | -68 | -5 | 171 |
State income taxes | 39 | -21 | -48 |
Other | -159 | 13 | -96 |
Effect of discontinued operations | 65 | 14 | 0 |
Valuation allowance | |||
Continuing operations | -181 | -3,165 | -1,907 |
Decrease in certain other valuation allowances associated with foreign jurisdictions | $0 | ||
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, percentage of pre-tax income (loss) | |||
U.S. federal income tax at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
Consolidated total amounts (as a percent) | 28.50% | 4.50% | -27.90% |
Amounts attributable to discontinued operations (as a percent) | 317.40% | 44.30% | 0.00% |
Adjustments: | |||
Amounts attributable to continuing operations (as a percent) | 27.90% | 3.80% | -27.90% |
Tax exempt interest (as a percent) | -2.20% | -3.10% | -10.40% |
Investment in subsidiaries and partnerships (as a percent) | 0.00% | 0.00% | -0.90% |
Uncertain Tax Positions (as a percent) | -0.80% | 6.60% | 15.40% |
Dividends received deduction (as a percent) | -0.60% | -0.80% | -2.00% |
Effect of foreign operations (as a percent) | -0.60% | -0.10% | 5.90% |
State income taxes (as a percent) | 0.40% | -0.20% | -1.70% |
Other (as a percent) | -1.50% | 0.10% | -3.30% |
Effect of discontinued operations (as a percent) | 0.60% | 0.10% | 0.00% |
Valuation allowance (as a percent): | |||
Continuing operations (as a percent) | -1.70% | -33.30% | -65.90% |
INCOME_TAXES_Details_Component
INCOME TAXES (Details - Components of the net deferred tax assets (liabilities) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Adjustment to life policy reserves | $629 | $445 |
Losses and tax credit carryforwards | 18,203 | 20,825 |
Unrealized loss on investments | 4,114 | 4,843 |
Accruals not currently deductible, and other | 1,804 | 2,935 |
Investments in foreign subsidiaries and joint ventures | -58 | 1,035 |
Loss reserve discount | 1,378 | 1,164 |
Loan loss and other reserves | 152 | 888 |
Unearned premium reserve reduction | 1,269 | 1,451 |
Employee benefits | 1,543 | 1,217 |
Total deferred tax assets | 29,034 | 34,803 |
Deferred tax liabilities: | ||
Deferred policy acquisition costs | -3,003 | -3,396 |
Flight equipment, fixed assets and intangible assets | 28 | -2,354 |
Unrealized gains related to available for sale debt securities | -5,795 | -3,693 |
Other | 220 | -571 |
Total deferred tax liabilities | -8,550 | -10,014 |
Net deferred tax assets before valuation allowance | 20,484 | 24,789 |
Valuation allowance | -1,739 | -3,596 |
Net deferred tax assets (liabilities) | $18,745 | $21,193 |
INCOME_TAXES_Details_US_consol
INCOME TAXES (Details - U.S. consolidated income tax group tax losses and credits carryforwards) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, gross | |
Net operating loss carryforwards | $33,021 |
Capital loss carryforwards - Life | 0 |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 11,557 |
Capital loss carryforwards - Life | 0 |
Foreign tax credit carryforwards | 7,109 |
Other carryforwards and other | 1,034 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards | $19,700 |
INCOME_TAXES_Details_Assessmen
INCOME TAXES (Details - Assessment of Deferred Tax Asset (liabilities) Valuation Allowance) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 26, 2009 | |
Deferred Tax Assets, Liabilities [Line Items] | ||||||||||||
Change in valuation allowance | $20,000,000 | $21,000,000 | $75,000,000 | $65,000,000 | $741,000,000 | $1,154,000,000 | $509,000,000 | $761,000,000 | $1,800,000,000 | |||
Continuing operations | -181,000,000 | -3,165,000,000 | -1,907,000,000 | |||||||||
Deferred tax asset valuation allowance allocated to other comprehensive income | 1,600,000,000 | |||||||||||
Deferred tax asset valuation allowance related to capital loss carryforward that expired in 2013 | 314,000,000 | |||||||||||
Deferred tax asset valuation allowance related to tax attributes that expired | 0 | |||||||||||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||||||||||
Valuation allowance | -1,739,000,000 | -3,596,000,000 | -1,739,000,000 | -3,596,000,000 | ||||||||
Net deferred tax assets (liabilities) | 18,745,000,000 | 21,193,000,000 | 18,745,000,000 | 21,193,000,000 | ||||||||
Net foreign, state & local deferred tax assets | 20,484,000,000 | 24,789,000,000 | 20,484,000,000 | 24,789,000,000 | ||||||||
Net U.S, foreign, state & local deferred tax assets | 19,339,000,000 | 21,925,000,000 | 19,339,000,000 | 21,925,000,000 | ||||||||
Net foreign, state & local deferred tax liabilities | -8,550,000,000 | -10,014,000,000 | -8,550,000,000 | -10,014,000,000 | ||||||||
Deferred tax asset - U.S. consolidated income tax group | ||||||||||||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||||||||||
Net U.S. consolidated return group deferred tax assets | 24,543,000,000 | 26,296,000,000 | 24,543,000,000 | 26,296,000,000 | ||||||||
Net deferred tax assets (liabilities) in Other comprehensive income | -5,510,000,000 | -3,337,000,000 | -5,510,000,000 | -3,337,000,000 | ||||||||
Valuation allowance | -129,000,000 | -1,650,000,000 | -129,000,000 | -1,650,000,000 | ||||||||
Net deferred tax assets (liabilities) | 18,904,000,000 | 21,309,000,000 | 18,904,000,000 | 21,309,000,000 | ||||||||
Refund of taxes, interest and penalties sought | 306,000,000 | |||||||||||
Deferred tax liability - foreign, state and local | ||||||||||||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||||||||||
Valuation allowance | -1,610,000,000 | -1,947,000,000 | -1,610,000,000 | -1,947,000,000 | ||||||||
Net deferred tax assets (liabilities) | 435,000,000 | 616,000,000 | 435,000,000 | 616,000,000 | ||||||||
Net foreign, state & local deferred tax assets | 2,045,000,000 | 2,563,000,000 | 2,045,000,000 | 2,563,000,000 | ||||||||
Net foreign, state & local deferred tax liabilities | -594,000,000 | -732,000,000 | -594,000,000 | -732,000,000 | ||||||||
Net foreign, state & local deferred tax liabilities | $159,000,000 | $116,000,000 | $159,000,000 | $116,000,000 |
INCOME_TAXES_Details_Accountin
INCOME TAXES (Details - Accounting For Uncertainty in Income Taxes) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Rollforward of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | |||
Gross unrecognized tax benefits, beginning of year | $4,340,000,000 | $4,385,000,000 | $4,279,000,000 |
Increases in tax positions for prior years | 91,000,000 | 680,000,000 | 336,000,000 |
Decreases in tax positions for prior years | -60,000,000 | -796,000,000 | -264,000,000 |
Increases in tax positions for current year | 10,000,000 | 43,000,000 | 47,000,000 |
Lapse in statute of limitations | -6,000,000 | -20,000,000 | -8,000,000 |
Settlements | 0 | -2,000,000 | -5,000,000 |
Activity of discontinued operations | 20,000,000 | 50,000,000 | 0 |
Gross unrecognized tax benefits, end of year | 4,395,000,000 | 4,340,000,000 | 4,385,000,000 |
Unrecognized tax benefits, if recognized would not affect the effective tax rate | 300,000,000 | 100,000,000 | 200,000,000 |
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate | 4,100,000,000 | 4,200,000,000 | 4,200,000,000 |
Unrecognized tax benefits, interest and penalties accrued | 1,100,000,000 | 1,100,000,000 | |
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties | $21,000,000 | $142,000,000 | $192,000,000 |
Unrecognized tax benefits, period of reasonably possible change in balance | P12M |
QUARTERLY_FINANCIAL_INFORMATIO2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details - Consolidated Statements of Income (Loss)) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Revenues | $64,406 | $68,874 | $71,214 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 10,501 | 9,368 | 2,891 | ||||||||
Income (loss) from discontinued operations, net of income tax expense | -35 | 2 | 30 | -47 | 11 | -18 | 18 | 73 | -50 | 84 | 1 |
Net income | 675 | 2,201 | 3,036 | 1,612 | 1,973 | 2,130 | 2,758 | 2,231 | 7,524 | 9,092 | 3,700 |
Net income (loss) from continuing operations attributable to noncontrolling interests: | |||||||||||
Nonvoting, callable, junior and senior preferred interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 208 |
Other | 20 | 9 | -37 | 3 | -5 | -40 | 27 | 25 | -5 | 7 | 54 |
Total net income (loss) attributable to noncontrolling interests | 20 | 9 | -37 | 3 | -5 | -40 | 27 | 25 | |||
Net income (loss) attributable to AIG | 655 | 2,192 | 3,073 | 1,609 | 1,978 | 2,170 | 2,731 | 2,206 | 7,529 | 9,085 | 3,438 |
Basic and diluted: | |||||||||||
Income from continuing operations | $0.50 | $1.54 | $2.11 | $1.13 | $1.34 | $1.48 | $1.84 | $1.44 | $5.31 | $6.11 | $2.04 |
Income (loss) from discontinued operations - basic (in dollars per share) | ($0.03) | $0 | $0.02 | ($0.03) | $0.01 | ($0.01) | $0.01 | $0.05 | ($0.04) | $0.05 | $0 |
Income from continuing operations | $5.24 | $6.08 | $2.04 | ||||||||
Income (loss) from discontinued operations | ($0.04) | $0.05 | $0 | ||||||||
Weighted average shares outstanding: | |||||||||||
Basic | 1,391,790,420 | 1,419,239,774 | 1,442,397,111 | 1,459,249,393 | 1,468,725,573 | 1,475,053,126 | 1,476,512,720 | 1,476,471,097 | 1,427,959,799 | 1,474,171,690 | 1,687,197,038 |
Diluted | 1,412,162,456 | 1,442,067,842 | 1,464,676,330 | 1,472,510,813 | 1,480,654,482 | 1,485,322,858 | 1,482,246,618 | 1,476,678,931 | 1,447,553,652 | 1,481,206,797 | 1,687,226,641 |
Noteworthy quarterly items income (expense): | |||||||||||
Other-than-temporary impairments | -83 | -50 | -55 | -59 | -86 | -52 | -46 | -48 | 217 | 187 | 829 |
Net (gain) loss on sale of divested businesses | -2,197 | 48 | 6,736 | ||||||||
Adjustment to federal deferred tax valuation allowance | 20 | 21 | 75 | 65 | 741 | 1,154 | 509 | 761 | 1,800 | ||
Net gain (loss) on extinguishment of debt | ($1,268) | ($742) | ($34) | ($238) | ($192) | ($81) | ($38) | ($340) | ($2,282) | ($651) | ($32) |
QUARTERLY_FINANCIAL_INFORMATIO3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details - Previously reported and adjusted amounts) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income (loss) attributable to AIG | $655 | $2,192 | $3,073 | $1,609 | $1,978 | $2,170 | $2,731 | $2,206 | $7,529 | $9,085 | $3,438 |
Total revenues | 64,406 | 68,874 | 71,214 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 10,501 | 9,368 | 2,891 | ||||||||
Income (loss) from discontinued operations, net of income tax expense | ($35) | $2 | $30 | ($47) | $11 | ($18) | $18 | $73 | ($50) | $84 | $1 |
Basic: | |||||||||||
Income (loss) from continuing operations (in dollars per share) | $0.50 | $1.54 | $2.11 | $1.13 | $1.34 | $1.48 | $1.84 | $1.44 | $5.31 | $6.11 | $2.04 |
Income (loss) from discontinued operations | ($0.03) | $0 | $0.02 | ($0.03) | $0.01 | ($0.01) | $0.01 | $0.05 | ($0.04) | $0.05 | $0 |
Diluted: | |||||||||||
Income (loss) from continuing operations (in dollars per share) | $5.24 | $6.08 | $2.04 | ||||||||
Income (loss) from discontinued operations (in dollars per share) | ($0.04) | $0.05 | $0 |
INFORMATION_PROVIDED_IN_CONNEC2
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Assets: | ||||
Short-term investments | $11,243 | $21,617 | ||
Other investments | 344,523 | 334,811 | ||
Total investments | 355,766 | 356,428 | ||
Cash | 1,758 | 2,241 | 1,151 | 1,474 |
Other assets, including deferred income taxes | 158,057 | 153,124 | ||
Assets held for sale | 0 | 29,536 | ||
Total assets | 515,581 | 541,329 | ||
Liabilities: | ||||
Insurance liabilities | 270,615 | 271,252 | ||
Other long-term debt | 31,217 | 41,693 | ||
Other liabilities, including intercompany balances | 106,477 | 102,725 | ||
Liabilities held for sale | 0 | 24,548 | ||
Total liabilities | 408,309 | 440,218 | ||
Redeemable noncontrolling interests (see Note 18) | 0 | 30 | ||
Total AIG shareholders' equity | 106,898 | 100,470 | ||
Non-redeemable noncontrolling interests | 374 | 611 | ||
Total equity | 107,272 | 101,081 | 98,669 | 102,393 |
Total liabilities and equity | 515,581 | 541,329 | ||
AIG (As Guarantor) | ||||
Assets: | ||||
Short-term investments | 6,078 | 11,965 | ||
Other investments | 11,415 | 7,561 | ||
Total investments | 17,493 | 19,526 | ||
Cash | 26 | 30 | 81 | 176 |
Loans to subsidiaries | 31,070 | 31,220 | ||
Investment in consolidated subsidiaries | 62,811 | 66,201 | ||
Other assets, including deferred income taxes | 23,835 | 21,606 | ||
Total assets | 135,235 | 138,583 | ||
Liabilities: | ||||
Other long-term debt | 21,190 | 30,839 | ||
Other liabilities, including intercompany balances | 6,196 | 6,422 | ||
Loans from subsidiaries | 951 | 852 | ||
Total liabilities | 28,337 | 38,113 | ||
Total AIG shareholders' equity | 106,898 | 100,470 | ||
Total equity | 106,898 | 100,470 | ||
Total liabilities and equity | 135,235 | 138,583 | ||
Intercompany tax payable | 343 | 1,419 | ||
Intercompany derivative liabilities | 275 | 249 | ||
AIGLH | ||||
Assets: | ||||
Cash | 91 | 51 | 73 | 13 |
Investment in consolidated subsidiaries | 35,850 | 39,103 | ||
Other assets, including deferred income taxes | 2,305 | 112 | ||
Total assets | 38,246 | 39,266 | ||
Liabilities: | ||||
Other long-term debt | 820 | 1,352 | ||
Other liabilities, including intercompany balances | 2,314 | 161 | ||
Loans from subsidiaries | 0 | 200 | ||
Total liabilities | 3,134 | 1,713 | ||
Total AIG shareholders' equity | 35,112 | 37,553 | ||
Total equity | 35,112 | 37,553 | ||
Total liabilities and equity | 38,246 | 39,266 | ||
Intercompany tax receivable | 3 | 98 | ||
Other Subsidiaries | ||||
Assets: | ||||
Short-term investments | 6,231 | 11,404 | ||
Other investments | 333,108 | 327,250 | ||
Total investments | 339,339 | 338,654 | ||
Cash | 1,641 | 2,160 | 997 | 1,285 |
Loans to subsidiaries | 779 | 854 | ||
Other assets, including deferred income taxes | 141,826 | 132,492 | ||
Assets held for sale | 0 | 29,536 | ||
Total assets | 483,585 | 503,696 | ||
Liabilities: | ||||
Insurance liabilities | 270,615 | 271,252 | ||
Other long-term debt | 9,207 | 9,502 | ||
Other liabilities, including intercompany balances | 108,189 | 98,908 | ||
Loans from subsidiaries | 30,898 | 31,173 | ||
Liabilities held for sale | 0 | 24,548 | ||
Total liabilities | 418,909 | 435,383 | ||
Redeemable noncontrolling interests (see Note 18) | 0 | 30 | ||
Total AIG shareholders' equity | 64,302 | 67,672 | ||
Non-redeemable noncontrolling interests | 374 | 611 | ||
Total equity | 64,676 | 68,283 | ||
Total liabilities and equity | 483,585 | 503,696 | ||
Reclassifications and Eliminations | ||||
Assets: | ||||
Short-term investments | -1,066 | -1,752 | ||
Total investments | -1,066 | -1,752 | ||
Loans to subsidiaries | -31,849 | -32,074 | ||
Investment in consolidated subsidiaries | -98,661 | -105,304 | ||
Other assets, including deferred income taxes | -9,909 | -1,086 | ||
Total assets | -141,485 | -140,216 | ||
Liabilities: | ||||
Insurance liabilities | 0 | |||
Other liabilities, including intercompany balances | -10,222 | -2,766 | ||
Loans from subsidiaries | -31,849 | -32,225 | ||
Total liabilities | -42,071 | -34,991 | ||
Total AIG shareholders' equity | -99,414 | -105,225 | ||
Total equity | -99,414 | -105,225 | ||
Total liabilities and equity | ($141,485) | ($140,216) |
INFORMATION_PROVIDED_IN_CONNEC3
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Income (Loss)) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||||||||||
Change in fair value of ML III | $0 | $2,888 | |||||||||
Other income | 64,406 | 68,874 | 68,326 | ||||||||
Total revenues | 64,406 | 68,874 | 71,214 | ||||||||
Expenses: | |||||||||||
Interest expense | 1,718 | 2,142 | 2,319 | ||||||||
Interest expense on FRBNY Credit Facility | 0 | ||||||||||
Other interest expense | 2,319 | ||||||||||
Net losses on extinguishment of debt | 1,268 | 742 | 34 | 238 | 192 | 81 | 38 | 340 | 2,282 | 651 | 32 |
Other expenses | 49,905 | 56,713 | 65,972 | ||||||||
Total benefits, losses and expenses | 53,905 | 59,506 | 68,323 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 10,501 | 9,368 | 2,891 | ||||||||
Income tax expense (benefit) | 2,927 | 360 | -808 | ||||||||
Income from continuing operations | 7,574 | 9,008 | 3,699 | ||||||||
Income (loss) from discontinued operations, net of income taxes | -35 | 2 | 30 | -47 | 11 | -18 | 18 | 73 | -50 | 84 | 1 |
Net income | 675 | 2,201 | 3,036 | 1,612 | 1,973 | 2,130 | 2,758 | 2,231 | 7,524 | 9,092 | 3,700 |
Net income (loss) from continuing operations attributable to noncontrolling interests: | |||||||||||
Nonvoting, callable, junior and senior preferred interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 208 |
Other | 20 | 9 | -37 | 3 | -5 | -40 | 27 | 25 | -5 | 7 | 54 |
Total net income (loss) from continuing operations attributable to noncontrolling interests | -5 | 7 | 262 | ||||||||
Total net income (loss) attributable to noncontrolling interests | 20 | 9 | -37 | 3 | -5 | -40 | 27 | 25 | |||
Net income attributable to AIG | 655 | 2,192 | 3,073 | 1,609 | 1,978 | 2,170 | 2,731 | 2,206 | 7,529 | 9,085 | 3,438 |
AIG (As Guarantor) | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 9,450 | 7,638 | 1,970 | ||||||||
Change in fair value of ML III | 0 | 0 | 2,287 | ||||||||
Other income | 1,658 | 1,487 | 1,911 | ||||||||
Total revenues | 11,108 | 9,125 | 6,168 | ||||||||
Expenses: | |||||||||||
Interest expense | 1,507 | 1,938 | 2,257 | ||||||||
Interest expense on FRBNY Credit Facility | 0 | ||||||||||
Other interest expense | 2,257 | ||||||||||
Net losses on extinguishment of debt | 2,248 | 580 | 9 | ||||||||
Other expenses | 1,546 | 1,520 | 1,602 | ||||||||
Total benefits, losses and expenses | 5,301 | 4,038 | 3,868 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 5,807 | 5,087 | 2,300 | ||||||||
Income tax expense (benefit) | -1,735 | -4,012 | -1,137 | ||||||||
Income from continuing operations | 7,542 | 9,099 | 3,437 | ||||||||
Income (loss) from discontinued operations, net of income taxes | -13 | -14 | 1 | ||||||||
Net income | 7,529 | 9,085 | 3,438 | ||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests: | |||||||||||
Net income attributable to AIG | 7,529 | 9,085 | 3,438 | ||||||||
AIGLH | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 3,519 | 4,075 | 2,315 | ||||||||
Other income | 0 | 1 | 49 | ||||||||
Total revenues | 3,519 | 4,076 | 2,364 | ||||||||
Expenses: | |||||||||||
Interest expense | 100 | 126 | |||||||||
Other interest expense | 174 | ||||||||||
Other expenses | 203 | 75 | |||||||||
Total benefits, losses and expenses | 303 | 201 | 174 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 3,216 | 3,875 | 2,190 | ||||||||
Income tax expense (benefit) | -103 | -58 | -17 | ||||||||
Income from continuing operations | 3,319 | 3,933 | 2,207 | ||||||||
Net income | 3,319 | 3,933 | 2,207 | ||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests: | |||||||||||
Net income attributable to AIG | 3,319 | 3,933 | 2,207 | ||||||||
Other Subsidiaries | |||||||||||
Revenues: | |||||||||||
Change in fair value of ML III | 0 | 601 | |||||||||
Other income | 63,157 | 67,698 | 66,749 | ||||||||
Total revenues | 63,157 | 67,698 | 67,350 | ||||||||
Expenses: | |||||||||||
Interest expense | 243 | 233 | |||||||||
Other interest expense | 271 | ||||||||||
Net losses on extinguishment of debt | 85 | 71 | 23 | ||||||||
Other expenses | 48,315 | 55,277 | 64,370 | ||||||||
Total benefits, losses and expenses | 48,643 | 55,581 | 64,664 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 14,514 | 12,117 | 2,686 | ||||||||
Income tax expense (benefit) | 4,817 | 4,454 | 346 | ||||||||
Income from continuing operations | 9,697 | 7,663 | 2,340 | ||||||||
Income (loss) from discontinued operations, net of income taxes | -37 | 98 | 0 | ||||||||
Net income | 9,660 | 7,761 | 2,340 | ||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests: | |||||||||||
Other | 7 | 54 | |||||||||
Total net income (loss) from continuing operations attributable to noncontrolling interests | -5 | 54 | |||||||||
Income (loss) from discontinued operations attributable to noncontrolling interests | 0 | ||||||||||
Total net income (loss) attributable to noncontrolling interests | 54 | ||||||||||
Net income attributable to AIG | 9,665 | 7,754 | 2,286 | ||||||||
Reclassifications and Eliminations | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | -12,969 | -11,713 | -4,285 | ||||||||
Other income | -409 | -312 | -383 | ||||||||
Total revenues | -13,378 | -12,025 | -4,668 | ||||||||
Expenses: | |||||||||||
Interest expense | -132 | -155 | |||||||||
Interest expense on FRBNY Credit Facility | 0 | ||||||||||
Other interest expense | -383 | ||||||||||
Net losses on extinguishment of debt | -51 | ||||||||||
Other expenses | -159 | -159 | |||||||||
Total benefits, losses and expenses | -342 | -314 | -383 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | -13,036 | -11,711 | -4,285 | ||||||||
Income tax expense (benefit) | -52 | -24 | |||||||||
Income from continuing operations | -12,984 | -11,687 | -4,285 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | ||||||||||
Net income | -12,984 | -11,687 | -4,285 | ||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests: | |||||||||||
Nonvoting, callable, junior and senior preferred interests | 208 | ||||||||||
Total net income (loss) from continuing operations attributable to noncontrolling interests | 208 | ||||||||||
Total net income (loss) attributable to noncontrolling interests | 208 | ||||||||||
Net income attributable to AIG | ($12,984) | ($11,687) | ($4,493) |
INFORMATION_PROVIDED_IN_CONNEC4
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Comprehensive Income (Loss)) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $675 | $2,201 | $3,036 | $1,612 | $1,973 | $2,130 | $2,758 | $2,231 | $7,524 | $9,092 | $3,700 |
Other Comprehensive Income (Loss) | 4,257 | -6,237 | 6,096 | ||||||||
Comprehensive income (loss) | 11,781 | 2,855 | 9,796 | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | -5 | -16 | 265 | ||||||||
Comprehensive income (loss) attributable to AIG | 11,786 | 2,871 | 9,531 | ||||||||
AIG (As Guarantor) | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 7,529 | 9,085 | 3,438 | ||||||||
Other Comprehensive Income (Loss) | 4,257 | -6,214 | 6,093 | ||||||||
Comprehensive income (loss) | 11,786 | 2,871 | 9,531 | ||||||||
Comprehensive income (loss) attributable to AIG | 11,786 | 2,871 | 9,531 | ||||||||
AIGLH | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 3,319 | 3,933 | 2,207 | ||||||||
Other Comprehensive Income (Loss) | 2,794 | -4,689 | 3,973 | ||||||||
Comprehensive income (loss) | 6,113 | -756 | 6,180 | ||||||||
Comprehensive income (loss) attributable to AIG | 6,113 | -756 | 6,180 | ||||||||
Other Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 9,660 | 7,761 | 2,340 | ||||||||
Other Comprehensive Income (Loss) | 3,235 | -6,719 | 7,158 | ||||||||
Comprehensive income (loss) | 12,895 | 1,042 | 9,498 | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | -5 | -16 | 57 | ||||||||
Comprehensive income (loss) attributable to AIG | 12,900 | 1,058 | 9,441 | ||||||||
Reclassifications and Eliminations | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | -12,984 | -11,687 | -4,285 | ||||||||
Other Comprehensive Income (Loss) | -6,029 | 11,385 | -11,128 | ||||||||
Comprehensive income (loss) | -19,013 | -302 | -15,413 | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 208 | |||||||||
Comprehensive income (loss) attributable to AIG | ($19,013) | ($302) | ($15,621) |
INFORMATION_PROVIDED_IN_CONNEC5
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $5,007,000,000 | $5,865,000,000 | $3,676,000,000 |
Cash flows from investing activities: | |||
Sales of investments | 66,104,000,000 | 77,094,000,000 | 101,406,000,000 |
Proceeds from divested businesses, net | 2,348,000,000 | ||
Purchase of investments | -58,110,000,000 | -77,887,000,000 | -76,567,000,000 |
Net change in restricted cash | -1,447,000,000 | 1,244,000,000 | 414,000,000 |
Net change in short-term investments | 8,760,000,000 | 7,842,000,000 | -8,109,000,000 |
Other, net | -1,023,000,000 | -1,194,000,000 | -532,000,000 |
Net cash provided by investing activities | 14,284,000,000 | 7,099,000,000 | 16,612,000,000 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 6,687,000,000 | 5,235,000,000 | 8,612,000,000 |
Repayments of long-term debt | -16,160,000,000 | -14,197,000,000 | -11,101,000,000 |
Purchase of Common Stock | -4,902,000,000 | -597,000,000 | -13,000,000,000 |
Cash dividends paid | -712,000,000 | -294,000,000 | |
Other, net | -4,701,000,000 | -1,905,000,000 | -5,075,000,000 |
Net cash provided by (used in) financing activities | -19,788,000,000 | -11,758,000,000 | -20,564,000,000 |
Effect of exchange rate changes on cash | -74,000,000 | -92,000,000 | 16,000,000 |
Net increase (decrease) in cash | -571,000,000 | 1,114,000,000 | -260,000,000 |
Cash at beginning of year | 2,241,000,000 | 1,151,000,000 | 1,474,000,000 |
Reclassification to assets held for sale | 88,000,000 | -24,000,000 | -63,000,000 |
Cash at end of year | 1,758,000,000 | 2,241,000,000 | 1,151,000,000 |
Interest: | |||
Third party | -3,367,000,000 | -3,856,000,000 | -4,037,000,000 |
Taxes: | |||
Income tax authorities | -737,000,000 | -796,000,000 | -447,000,000 |
AIG (As Guarantor) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | -825,000,000 | ||
Net cash provided by operating activities | 9,316,000,000 | 6,422,000,000 | -825,000,000 |
Cash flows from investing activities: | |||
Sales of investments | 3,036,000,000 | 1,425,000,000 | 16,874,000,000 |
Purchase of investments | -1,051,000,000 | -5,506,000,000 | -4,406,000,000 |
Loans to subsidiaries - net | 446,000,000 | 3,660,000,000 | 5,126,000,000 |
Contributions to subsidiaries - net | -148,000,000 | -2,081,000,000 | -152,000,000 |
Net change in restricted cash | -501,000,000 | 493,000,000 | -377,000,000 |
Net change in short-term investments | 5,792,000,000 | 2,361,000,000 | -2,029,000,000 |
Other, net | -141,000,000 | 130,000,000 | 259,000,000 |
Net cash provided by (used in) investing activities - continuing operations | 15,295,000,000 | ||
Net cash provided by investing activities | 7,433,000,000 | 482,000,000 | 15,295,000,000 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 3,247,000,000 | 2,015,000,000 | 3,754,000,000 |
Repayments of long-term debt | -14,468,000,000 | -7,439,000,000 | -3,238,000,000 |
Purchase of Common Stock | -4,902,000,000 | -597,000,000 | -13,000,000,000 |
Intercompany loans - net | 110,000,000 | -123,000,000 | -2,032,000,000 |
Cash dividends paid | -712,000,000 | -294,000,000 | |
Other, net | -28,000,000 | -517,000,000 | -49,000,000 |
Net cash provided by (used in) financing activities - continuing operations | -14,565,000,000 | ||
Net cash provided by (used in) financing activities | -16,753,000,000 | -6,955,000,000 | -14,565,000,000 |
Net increase (decrease) in cash | -4,000,000 | -51,000,000 | -95,000,000 |
Cash at beginning of year | 30,000,000 | 81,000,000 | 176,000,000 |
Cash at end of year | 26,000,000 | 30,000,000 | 81,000,000 |
Interest: | |||
Third party | -1,624,000,000 | -1,963,000,000 | -2,089,000,000 |
Intercompany | 5,000,000 | -12,000,000 | -133,000,000 |
Taxes: | |||
Income tax authorities | -18,000,000 | -161,000,000 | -7,000,000 |
Intercompany | 1,172,000,000 | 288,000,000 | 230,000,000 |
Payment of FRBNY Credit Facility accrued compounded interest | 0 | ||
Non-cash financing and investing activities: | |||
Capital contributions in the form of bond available for sale securities | 4,078,000,000 | ||
Capital contributions to subsidiaries through forgiveness of loans | 341,000,000 | ||
Return of capital | 4,836,000,000 | ||
Return of capital and dividend received in the form of cancellation of intercompany loan | 9,303,000,000 | ||
Return of capital and dividend received in the form of other bonds securities | 3,088,000,000 | 3,320,000,000 | |
Other capital contributions - net | 2,457,000,000 | 523,000,000 | 579,000,000 |
AIGLH | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 2,682,000,000 | ||
Cash flows from investing activities: | |||
Contributions to subsidiaries - net | 0 | -1,000,000 | 0 |
Net cash provided by (used in) investing activities - continuing operations | -1,000,000 | 0 | |
Cash flows from financing activities: | |||
Repayments of long-term debt | -477,000,000 | -245,000,000 | |
Intercompany loans - net | -280,000,000 | -273,000,000 | -2,622,000,000 |
Cash dividends paid | -5,358,000,000 | -3,991,000,000 | |
Net cash provided by (used in) financing activities - continuing operations | -4,509,000,000 | -2,622,000,000 | |
Net increase (decrease) in cash | 40,000,000 | -22,000,000 | 60,000,000 |
Cash at beginning of year | 51,000,000 | 73,000,000 | 13,000,000 |
Cash at end of year | 91,000,000 | 51,000,000 | 73,000,000 |
Interest: | |||
Third party | -87,000,000 | -111,000,000 | -128,000,000 |
Intercompany | -7,000,000 | -21,000,000 | -56,000,000 |
Taxes: | |||
Intercompany | 0 | -78,000,000 | -41,000,000 |
Other Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | 8,979,000,000 | 7,385,000,000 | 6,387,000,000 |
Cash flows from investing activities: | |||
Sales of investments | 65,108,000,000 | 78,868,000,000 | 90,070,000,000 |
Purchase of investments | -59,099,000,000 | -75,580,000,000 | -77,699,000,000 |
Loans to subsidiaries - net | 169,000,000 | 395,000,000 | 4,654,000,000 |
Contributions to subsidiaries - net | -296,000,000 | ||
Net change in restricted cash | -946,000,000 | 751,000,000 | 791,000,000 |
Net change in short-term investments | 2,968,000,000 | 5,481,000,000 | -6,080,000,000 |
Other, net | -882,000,000 | -1,324,000,000 | -791,000,000 |
Net cash provided by (used in) investing activities - continuing operations | 7,614,000,000 | 8,591,000,000 | 10,945,000,000 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 3,440,000,000 | 3,220,000,000 | 4,858,000,000 |
Repayments of long-term debt | -1,215,000,000 | -6,513,000,000 | -7,863,000,000 |
Intercompany loans - net | -445,000,000 | -3,659,000,000 | -5,126,000,000 |
Cash dividends paid | -14,085,000,000 | -8,439,000,000 | -4,568,000,000 |
Other, net | -4,821,000,000 | 694,000,000 | -4,874,000,000 |
Net cash provided by (used in) financing activities - continuing operations | -17,126,000,000 | -14,697,000,000 | -17,573,000,000 |
Effect of exchange rate changes on cash | -74,000,000 | -92,000,000 | 16,000,000 |
Net increase (decrease) in cash | -607,000,000 | 1,187,000,000 | -225,000,000 |
Cash at beginning of year | 2,160,000,000 | 997,000,000 | 1,285,000,000 |
Reclassification to assets held for sale | 88,000,000 | -24,000,000 | -63,000,000 |
Cash at end of year | 1,641,000,000 | 2,160,000,000 | 997,000,000 |
Interest: | |||
Third party | -1,656,000,000 | -1,782,000,000 | -1,820,000,000 |
Intercompany | 2,000,000 | 33,000,000 | 189,000,000 |
Taxes: | |||
Income tax authorities | -719,000,000 | -635,000,000 | -440,000,000 |
Intercompany | -1,172,000,000 | -210,000,000 | -189,000,000 |
Reclassifications and Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used in) provided by operating activities | -19,443,000,000 | -12,430,000,000 | -4,568,000,000 |
Cash flows from investing activities: | |||
Sales of investments | -2,040,000,000 | -3,199,000,000 | -5,538,000,000 |
Proceeds from divested businesses, net | 0 | ||
Purchase of investments | 2,040,000,000 | 3,199,000,000 | 5,538,000,000 |
Loans to subsidiaries - net | -615,000,000 | -4,055,000,000 | -9,780,000,000 |
Contributions to subsidiaries - net | -148,000,000 | 2,082,000,000 | 152,000,000 |
Net cash provided by (used in) investing activities - continuing operations | -763,000,000 | -1,973,000,000 | -9,628,000,000 |
Cash flows from financing activities: | |||
Intercompany loans - net | 615,000,000 | 4,055,000,000 | 9,780,000,000 |
Cash dividends paid | 19,443,000,000 | 12,430,000,000 | 4,568,000,000 |
Other, net | 148,000,000 | -2,082,000,000 | -152,000,000 |
Net cash provided by (used in) financing activities - continuing operations | 20,206,000,000 | 14,403,000,000 | 14,196,000,000 |
Interest: | |||
Third party | 0 | 0 | 0 |
Intercompany | 0 | 0 | 0 |
Taxes: | |||
Income tax authorities | 0 | 0 | 0 |
Intercompany | $0 | $0 | $0 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||
Aug. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 12, 2015 | Jan. 15, 2015 | |
Subsequent Event [Line Items] | ||||||
Dividends declared per common share | $0.50 | $0.20 | $0 | |||
Aggregate remaining authorization amount of common Stock share repurchase | $1,000,000,000 | |||||
Subsequent event | ||||||
Subsequent Event [Line Items] | ||||||
Dividends declared per common share | $0.13 | |||||
Authorized amount of common Stock share repurchase | 2,500,000,000 | |||||
Aggregate remaining authorization amount of common Stock share repurchase | 2,500,000,000 | |||||
Subsequent event | 3.875 % Notes due 2035 | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate principal amount of debt issued | 1,200,000,000 | |||||
Interest rate (as a percent) | 3.88% | |||||
Subsequent event | 4.375 % Notes due 2055 | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate principal amount of debt issued | $800,000,000 | |||||
Interest rate (as a percent) | 4.38% |
Schedule_I_Summary_of_Investme1
Schedule I Summary of Investments - Other than Investments in Related Parties (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $336,450 |
Fair Value | 358,108 |
Amount at which shown in the Balance Sheet | 357,370 |
Fixed maturity securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 263,019 |
Fair Value | 279,571 |
Amount at which shown in the Balance Sheet | 279,571 |
U.S. government and government sponsored entities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 8,304 |
Fair Value | 8,490 |
Amount at which shown in the Balance Sheet | 8,490 |
Obligations of states, municipalities and political subdivisions | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 26,101 |
Fair Value | 27,781 |
Amount at which shown in the Balance Sheet | 27,781 |
Non-U.S. government | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 20,282 |
Fair Value | 21,097 |
Amount at which shown in the Balance Sheet | 21,097 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 21,712 |
Fair Value | 23,676 |
Amount at which shown in the Balance Sheet | 23,676 |
All other corporate and debt securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 113,968 |
Fair Value | 121,476 |
Amount at which shown in the Balance Sheet | 121,476 |
Mortgage-backed, asset-backed and collateralized | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 72,652 |
Fair Value | 77,051 |
Amount at which shown in the Balance Sheet | 77,051 |
Equity securities and mutual funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 2,979 |
Fair Value | 5,444 |
Amount at which shown in the Balance Sheet | 5,444 |
Common Stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 2,234 |
Fair Value | 4,678 |
Amount at which shown in the Balance Sheet | 4,678 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 9 |
Fair Value | 11 |
Amount at which shown in the Balance Sheet | 11 |
Banks, trust and insurance companies | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,854 |
Fair Value | 4,128 |
Amount at which shown in the Balance Sheet | 4,128 |
Industrial, miscellaneous and all other | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 371 |
Fair Value | 539 |
Amount at which shown in the Balance Sheet | 539 |
Preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 21 |
Fair Value | 25 |
Amount at which shown in the Balance Sheet | 25 |
Mutual funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 724 |
Fair Value | 741 |
Amount at which shown in the Balance Sheet | 741 |
Mortgage and other loans receivable, net of allowance | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 24,990 |
Fair Value | 26,606 |
Amount at which shown in the Balance Sheet | 24,990 |
Other invested assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 32,615 |
Fair Value | 33,640 |
Amount at which shown in the Balance Sheet | 34,518 |
Short-term investments, at cost (approximates fair value) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 11,243 |
Fair Value | 11,243 |
Amount at which shown in the Balance Sheet | 11,243 |
Derivative assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,604 |
Fair Value | 1,604 |
Amount at which shown in the Balance Sheet | $1,604 |
Schedule_II_Condensed_Financia1
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Assets: | ||||
Short-term investments | $11,243 | $21,617 | ||
Other investments | 344,523 | 334,811 | ||
Total investments | 355,766 | 356,428 | ||
Cash | 1,758 | 2,241 | 1,151 | 1,474 |
Deferred income taxes | 19,339 | 21,925 | ||
Other assets | 10,549 | 9,366 | ||
Total assets | 515,581 | 541,329 | ||
Liabilities: | ||||
Outstanding debt | 31,217 | 41,693 | ||
Total liabilities | 408,309 | 440,218 | ||
AIG Shareholders' equity: | ||||
Common stock | 4,766 | 4,766 | ||
Treasury stock | -19,218 | -14,520 | ||
Additional paid-in capital | 80,958 | 80,899 | ||
Retained earnings | 29,775 | 22,965 | ||
Accumulated other comprehensive income (loss) | 10,617 | 6,360 | ||
Total AIG shareholders' equity | 106,898 | 100,470 | ||
Total liabilities and equity | 515,581 | 541,329 | ||
Parent Company [Member] | ||||
Assets: | ||||
Short-term investments | 6,078 | 11,965 | ||
Other investments | 11,415 | 7,561 | ||
Total investments | 17,493 | 19,526 | ||
Cash | 26 | 30 | 81 | 176 |
Loans to subsidiaries | 31,070 | 31,220 | ||
Due from affiliates - net | 3,561 | 765 | ||
Deferred income taxes | 18,309 | 19,352 | ||
Investment in consolidated subsidiaries | 62,811 | 66,201 | ||
Other assets | 1,965 | 1,489 | ||
Total assets | 135,235 | 138,583 | ||
Liabilities: | ||||
Intercompany tax payable | 343 | 1,419 | ||
Loans from subsidiaries | 951 | 852 | ||
Other liabilities (includes intercompany derivative liabilities of $275 in 2014 and $249 in 2013) | 5,853 | 5,003 | ||
Total liabilities | 28,337 | 38,113 | ||
Intercompany derivative liabilities | 275 | 249 | ||
AIG Shareholders' equity: | ||||
Common stock | 4,766 | 4,766 | ||
Treasury stock | -19,218 | -14,520 | ||
Additional paid-in capital | 80,958 | 80,899 | ||
Retained earnings | 29,775 | 22,965 | ||
Accumulated other comprehensive income (loss) | 10,617 | 6,360 | ||
Total AIG shareholders' equity | 106,898 | 100,470 | ||
Total liabilities and equity | 135,235 | 138,583 | ||
Parent Company [Member] | Series AIGFP | ||||
Liabilities: | ||||
Outstanding debt | 33 | 3,031 | ||
Parent Company [Member] | MIP | ||||
Liabilities: | ||||
Outstanding debt | 2,870 | 7,963 | ||
Parent Company [Member] | Notes and bonds payable | ||||
Liabilities: | ||||
Outstanding debt | 15,821 | 14,312 | ||
Parent Company [Member] | Junior subordinated debt | ||||
Liabilities: | ||||
Outstanding debt | $2,466 | $5,533 |
Schedule_II_Condensed_Financia2
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||||||||||
Change in fair value of ML III | $0 | $2,888 | |||||||||
Net realized capital gains (losses) | 739 | 1,939 | 1,087 | ||||||||
Expenses | |||||||||||
Interest expense | 1,718 | 2,142 | 2,319 | ||||||||
Net losses on extinguishment of debt | 1,268 | 742 | 34 | 238 | 192 | 81 | 38 | 340 | 2,282 | 651 | 32 |
Income from continuing operations before income tax expense (benefit) | 10,501 | 9,368 | 2,891 | ||||||||
Income tax expense (benefit) | 2,927 | 360 | -808 | ||||||||
Net income (loss) attributable to AIG from continuing operations | 7,579 | 9,001 | 3,437 | ||||||||
Income (loss) from discontinued operations | -35 | 2 | 30 | -47 | 11 | -18 | 18 | 73 | -50 | 84 | 1 |
Net income attributable to AIG | 655 | 2,192 | 3,073 | 1,609 | 1,978 | 2,170 | 2,731 | 2,206 | 7,529 | 9,085 | 3,438 |
Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Equity in undistributed net income (loss) of consolidated subsidiaries | -5,573 | -2,226 | -8,740 | ||||||||
Dividend income from consolidated subsidiaries | 15,023 | 9,864 | 10,710 | ||||||||
Interest income | 305 | 387 | 358 | ||||||||
Change in fair value of ML III | 0 | 0 | 2,287 | ||||||||
Net realized capital gains (losses) | 8 | 169 | 747 | ||||||||
Other income | 1,345 | 931 | 806 | ||||||||
Expenses | |||||||||||
Interest expense | 1,507 | 1,938 | 2,257 | ||||||||
Net losses on extinguishment of debt | 2,248 | 580 | 9 | ||||||||
Other expenses | 1,546 | 1,520 | 1,602 | ||||||||
Income from continuing operations before income tax expense (benefit) | 5,807 | 5,087 | 2,300 | ||||||||
Income tax expense (benefit) | -1,735 | -4,012 | -1,137 | ||||||||
Net income (loss) attributable to AIG from continuing operations | 7,542 | 9,099 | 3,437 | ||||||||
Income (loss) from discontinued operations | -13 | -14 | 1 | ||||||||
Net income attributable to AIG | $7,529 | $9,085 | $3,438 |
Schedule_II_Condensed_Financia3
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $675 | $2,201 | $3,036 | $1,612 | $1,973 | $2,130 | $2,758 | $2,231 | $7,524 | $9,092 | $3,700 |
Other Comprehensive Income (Loss) | 4,257 | -6,237 | 6,096 | ||||||||
Comprehensive income attributable to AIG | 11,786 | 2,871 | 9,531 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 7,529 | 9,085 | 3,438 | ||||||||
Other Comprehensive Income (Loss) | 4,257 | -6,214 | 6,093 | ||||||||
Comprehensive income attributable to AIG | $11,786 | $2,871 | $9,531 |
Schedule_II_Condensed_Financia4
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $5,007,000,000 | $5,865,000,000 | $3,676,000,000 |
Cash flows from investing activities: | |||
Proceeds from divested businesses, net | 2,348,000,000 | ||
Purchase of investments | -58,110,000,000 | -77,887,000,000 | -76,567,000,000 |
Net change in restricted cash | -1,447,000,000 | 1,244,000,000 | 414,000,000 |
Net change in short-term investments | 8,760,000,000 | 7,842,000,000 | -8,109,000,000 |
Payments received on mortgages and other loan receivables | 3,856,000,000 | 3,420,000,000 | 3,313,000,000 |
Net cash provided by investing activities | 14,284,000,000 | 7,099,000,000 | 16,612,000,000 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 6,687,000,000 | 5,235,000,000 | 8,612,000,000 |
Repayments of long-term debt | -16,160,000,000 | -14,197,000,000 | -11,101,000,000 |
Cash dividends paid | -712,000,000 | -294,000,000 | |
Purchase of Common Stock | -4,902,000,000 | -597,000,000 | -13,000,000,000 |
Other, net | -4,701,000,000 | -1,905,000,000 | -5,075,000,000 |
Net cash provided by (used in) financing activities | -19,788,000,000 | -11,758,000,000 | -20,564,000,000 |
Net increase (decrease) in cash | -571,000,000 | 1,114,000,000 | -260,000,000 |
Cash at beginning of year | 2,241,000,000 | 1,151,000,000 | 1,474,000,000 |
Cash at end of year | 1,758,000,000 | 2,241,000,000 | 1,151,000,000 |
Interest: | |||
Third party | -3,367,000,000 | -3,856,000,000 | -4,037,000,000 |
Taxes: | |||
Income tax authorities | -737,000,000 | -796,000,000 | -447,000,000 |
Parent Company [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 9,316,000,000 | 6,422,000,000 | -825,000,000 |
Cash flows from investing activities: | |||
Sales and maturities of investments | 2,996,000,000 | 1,074,000,000 | 16,546,000,000 |
Purchase of investments | -1,051,000,000 | -5,506,000,000 | -4,406,000,000 |
Net change in restricted cash | -501,000,000 | 493,000,000 | -377,000,000 |
Net change in short-term investments | 5,792,000,000 | 2,361,000,000 | -2,029,000,000 |
Contributions to subsidiaries - net | -148,000,000 | -2,081,000,000 | -152,000,000 |
Payments received on mortgages and other loan receivables | 40,000,000 | 351,000,000 | 328,000,000 |
Loans to subsidiaries - net | 446,000,000 | 3,660,000,000 | 5,126,000,000 |
Other, net | -141,000,000 | 130,000,000 | 259,000,000 |
Net cash provided by investing activities | 7,433,000,000 | 482,000,000 | 15,295,000,000 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 3,247,000,000 | 2,015,000,000 | 3,754,000,000 |
Repayments of long-term debt | -14,468,000,000 | -7,439,000,000 | -3,238,000,000 |
Cash dividends paid | -712,000,000 | -294,000,000 | |
Loans from subsidiaries - net | 110,000,000 | -123,000,000 | -2,032,000,000 |
Purchase of Common Stock | -4,902,000,000 | -597,000,000 | -13,000,000,000 |
Other, net | -28,000,000 | -517,000,000 | -49,000,000 |
Net cash provided by (used in) financing activities | -16,753,000,000 | -6,955,000,000 | -14,565,000,000 |
Net increase (decrease) in cash | -4,000,000 | -51,000,000 | -95,000,000 |
Cash at beginning of year | 30,000,000 | 81,000,000 | 176,000,000 |
Cash at end of year | 26,000,000 | 30,000,000 | 81,000,000 |
Interest: | |||
Third party | -1,624,000,000 | -1,963,000,000 | -2,089,000,000 |
Intercompany | 5,000,000 | -12,000,000 | -133,000,000 |
Taxes: | |||
Income tax authorities | -18,000,000 | -161,000,000 | -7,000,000 |
Intercompany | 1,172,000,000 | 288,000,000 | 230,000,000 |
Non-cash investing/financing activities: | |||
Capital contributions in the form of available for sale securities | 4,078,000,000 | ||
Capital contributions to subsidiaries through forgiveness of loans | 341,000,000 | ||
Other capital contributions - net | 2,457,000,000 | 523,000,000 | 579,000,000 |
Return of capital | 4,836,000,000 | ||
Return of capital and dividend received in the form of cancellation of intercompany loan | 9,303,000,000 | ||
Return of capital and dividend received in the form of other bonds securities | 3,088,000,000 | 3,320,000,000 | |
Payment of accrued compounded interest of FRBNY Credit Facility | $0 |
Schedule_III_Supplementary_Ins1
Schedule III Supplementary Insurance Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | $9,827 | $9,436 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits | 120,009 | 122,200 | |
Reserve for Unearned Premiums | 21,324 | 21,953 | |
Policy and Contract Claims | 829 | 806 | |
Premiums and Policy Fees | 39,869 | 39,839 | 40,381 |
Net Investment Income | 16,079 | 15,810 | 20,343 |
Losses and Loss Expenses Incurred, Benefits | 32,049 | 33,395 | 36,376 |
Amortization of Deferred Policy Acquisition Costs | 5,330 | 5,157 | 5,709 |
Other Operating Expenses | 10,887 | 10,883 | 10,639 |
Net Premiums Written | 34,456 | 34,628 | 34,508 |
Corporate and Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 18 | 23 | 25 |
Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits | 166 | 196 | 75 |
Reserve for Unearned Premiums | -1 | 0 | 0 |
Policy and Contract Claims | 11 | 10 | 9 |
Premiums and Policy Fees | 72 | 76 | 118 |
Net Investment Income | 604 | -195 | 4,918 |
Losses and Loss Expenses Incurred, Benefits | 915 | 1,546 | 1,470 |
Amortization of Deferred Policy Acquisition Costs | 59 | -97 | 167 |
Other Operating Expenses | 6 | 8 | 6 |
Net Premiums Written | 0 | 0 | 0 |
Non-life insurance companies | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 2,551 | 2,493 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits | 77,839 | 82,156 | |
Reserve for Unearned Premiums | 21,325 | 21,953 | |
Policy and Contract Claims | 0 | 0 | |
Life insurance companies | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 7,258 | 6,920 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits | 42,004 | 39,848 | |
Reserve for Unearned Premiums | 0 | 0 | |
Policy and Contract Claims | 818 | 796 | |
Commercial Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Policy Fees | 22,408 | 22,209 | 22,123 |
Net Investment Income | 6,393 | 6,653 | 6,163 |
Losses and Loss Expenses Incurred, Benefits | 16,985 | 17,415 | 19,441 |
Amortization of Deferred Policy Acquisition Costs | 2,512 | 2,418 | 2,692 |
Other Operating Expenses | 3,794 | 4,049 | 3,938 |
Net Premiums Written | 22,044 | 21,928 | 21,206 |
Consumer Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Policy Fees | 17,389 | 17,554 | 18,140 |
Net Investment Income | 9,082 | 9,352 | 9,262 |
Losses and Loss Expenses Incurred, Benefits | 14,149 | 14,434 | 15,465 |
Amortization of Deferred Policy Acquisition Costs | 2,759 | 2,836 | 2,850 |
Other Operating Expenses | 7,087 | 6,826 | 6,695 |
Net Premiums Written | $12,412 | $12,700 | $13,302 |
Schedule_IV_Reinsurance_Detail
Schedule IV Reinsurance (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $43,425 | $43,984 | $44,604 |
Ceded to Other Companies | 8,979 | 10,134 | 11,635 |
Assumed from Other Companies | 3,419 | 4,319 | 4,917 |
Net Amount | 37,865 | 38,169 | 37,886 |
Percent of Amount Assumed to Net | 9.00% | 11.30% | 13.00% |
Divested Businesses | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | 11 | 9 | 11 |
Net Amount | 11 | 9 | 11 |
Reportable Segments | Commercial Insurance | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | 39,375 | 39,833 | 40,647 |
Ceded to Other Companies | 8,318 | 9,514 | 11,054 |
Assumed from Other Companies | 3,399 | 4,306 | 4,900 |
Net Amount | 34,456 | 34,625 | 34,493 |
Percent of Amount Assumed to Net | 9.90% | 12.40% | 14.20% |
Reportable Segments | Consumer Insurance | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | 4,039 | 4,142 | 3,946 |
Ceded to Other Companies | 661 | 620 | 581 |
Assumed from Other Companies | 20 | 13 | 17 |
Net Amount | 3,398 | 3,535 | 3,382 |
Percent of Amount Assumed to Net | 0.60% | 0.40% | 0.50% |
Long-duration insurance in force | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount, Long-duration insurance in force | 1,033,281 | 946,743 | 947,951 |
Long-duration insurance in force ceded | 180,178 | 122,012 | 129,159 |
Contracts in Force Assumed | 410 | 427 | 458 |
Net Amount, Long-duration insurance in force | $853,513 | $825,158 | $819,250 |
Percent of Amount Assumed to Net | 0.10% | 0.10% |
Schedule_V_Valuation_and_Quali1
Schedule V Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Divested Businesses | |||
Valuation and Qualifying Accounts | |||
Net change | $1 | ($6) | $0 |
Allowance for mortgage and other loans receivable | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 312 | 405 | 740 |
Charged to costs and expenses | -8 | 20 | -103 |
Charge offs | -68 | -116 | -44 |
Other changes | 34 | 9 | 17 |
Balance at the end of the year | 271 | 312 | 405 |
Allowance for mortgage and other loans receivable | Segment Discontinued Operations | |||
Valuation and Qualifying Accounts | |||
Net change | 0 | -205 | |
Allowance for premiums and insurances balances receivable | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 560 | 624 | 484 |
Charged to costs and expenses | 35 | 14 | 174 |
Charge offs | -99 | -74 | -36 |
Other changes | -65 | -4 | 2 |
Balance at the end of the year | 431 | 560 | 624 |
Allowance for reinsurance assets | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 276 | 338 | 364 |
Charged to costs and expenses | 4 | -42 | -4 |
Charge offs | -3 | -31 | -1 |
Other changes | -19 | 11 | -21 |
Balance at the end of the year | 258 | 276 | 338 |
Federal and foreign valuation allowance for deferred tax assets | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 3,596 | 8,036 | 11,047 |
Charged to costs and expenses | -181 | -3,165 | -1,907 |
Charge offs | 0 | 0 | 0 |
Other changes | -1,676 | -1,235 | -1,104 |
Balance at the end of the year | 1,739 | 3,596 | 8,036 |
Federal and foreign valuation allowance for deferred tax assets | Segment Discontinued Operations | |||
Valuation and Qualifying Accounts | |||
Net change | $0 | ($40) |