Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 13, 2017 | Jun. 30, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | AMERICAN INTERNATIONAL GROUP INC | ||
Entity Central Index Key | 5,272 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 57,263,000,000 | ||
Entity Common Stock, Shares Outstanding | 979,560,020 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fixed maturity securities: | ||
Bonds available for sale, at fair value (amortized cost: 2016 - $232,241; 2015 - $240,968) | $ 241,537 | $ 248,245 |
Other bond securities, at fair value (See Note 6) | 13,998 | 16,782 |
Equity Securities: | ||
Common and preferred stock available for sale, at fair value (cost: 2016 - $1,697; 2015 - $1,379) | 2,078 | 2,915 |
Other common and preferred stock, at fair value (See Note 6) | 482 | 921 |
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2016 - $11; 2015 - $11) | 33,240 | 29,565 |
Other invested assets (portion measured at fair value: 2016 - $6,946; 2015 - $8,912) | 24,538 | 29,794 |
Short-term investments (portion measured at fair value: 2016 - $3,341; 2015 - $2,591) | 12,302 | 10,132 |
Total investments | 328,175 | 338,354 |
Cash | 1,868 | 1,629 |
Accrued investment income | 2,495 | 2,623 |
Premiums and other receivables, net of allowance | 10,465 | 11,451 |
Reinsurance assets, net of allowance | 21,901 | 20,413 |
Deferred income taxes | 21,332 | 20,394 |
Deferred policy acquisition costs | 11,042 | 11,115 |
Other assets, including restricted cash of $193 in 2016 and $170 in 2015 (portion measured at fair value: 2016 - $1,809; 2015 - $1,309) | 10,815 | 11,289 |
Separate account assets, at fair value | 82,972 | 79,574 |
Assets held for sale | 7,199 | |
Total assets | 498,264 | 496,842 |
Liabilities: | ||
Liability for unpaid losses and loss adjustment expenses | 77,077 | 74,942 |
Unearned premiums | 19,634 | 21,318 |
Future policy benefits for life and accident and health insurance contracts | 42,204 | 43,585 |
Policyholder contract deposits (portion measured at fair value: 2016 - $3,058; 2015 - $2,325) | 132,216 | 127,588 |
Other policyholder funds (portion measured at fair value: 2016 - $5; 2015 - $6) | 3,989 | 4,212 |
Other liabilities (portion measured at fair value: 2016 - $2,016; 2015 - $2,082) | 26,296 | 26,164 |
Long-term debt (portion measured at fair value: 2016 - $3,428; 2015 - $3,670) | 30,912 | 29,249 |
Separate account liabilities | 82,972 | 79,574 |
Liabilities held for sale | 6,106 | |
Total liabilities | 421,406 | 406,632 |
Contingencies, commitments and guarantees (see Note 16) | ||
AIG shareholders' equity: | ||
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2016 - 1,906,671,492 and 2015 - 1,906,671,492 | 4,766 | 4,766 |
Treasury stock, at cost; 2016 - 911,335,651; 2015 - 712,754,875 shares of common stock | (41,471) | (30,098) |
Additional paid-in capital | 81,064 | 81,510 |
Retained earnings | 28,711 | 30,943 |
Accumulated other comprehensive income (loss) | 3,230 | 2,537 |
Total AIG shareholders' equity | 76,300 | 89,658 |
Non-redeemable noncontrolling interests | 558 | 552 |
Total equity | 76,858 | 90,210 |
Total liabilities and equity | $ 498,264 | $ 496,842 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical - assets and liabilities) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Bonds available for sale, amortized cost | $ 232,241 | $ 240,968 |
Common and preferred stock available for sale, cost | 1,697 | 1,379 |
Mortgage and other loans receivable, portion measured at fair value | 11 | 11 |
Other invested assets, portion measured at fair value | 6,946 | 8,912 |
Short-term investments, portion measured at fair value | 3,341 | 2,591 |
Other assets, restricted cash | 193 | 170 |
Other assets, portion measured at fair value | 1,809 | 1,309 |
Liabilities: | ||
Policyholder contract deposits, portion measured at fair value | 3,058 | 2,325 |
Other policyholder funds, portion measured at fair value | 5 | 6 |
Other liabilities, portion measured at fair value | 2,016 | 2,082 |
Long-term debt, portion measured at fair value | $ 3,428 | $ 3,670 |
CONSOLIDATED BALANCE SHEETS (P4
CONSOLIDATED BALANCE SHEETS (Parenthetical - equity) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
AIG shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 2.5 | $ 2.5 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 1,906,671,492 | 1,906,671,492 |
Treasury stock, shares of common stock | 911,335,651 | 712,754,875 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Premiums | $ 34,393 | $ 36,655 | $ 37,254 |
Policy fees | 2,732 | 2,755 | 2,615 |
Net investment income | 14,065 | 14,053 | 16,079 |
Net realized capital gains (losses): | |||
Total other-than-temporary impairments on available for sale securities | (458) | (556) | (182) |
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss) | (29) | (35) | (35) |
Net other-than-temporary impairments on available for sale securities recognized in net income | (487) | (591) | (217) |
Other realized capital gains (losses) | (1,457) | 1,367 | 956 |
Total net realized capital gains (losses) | (1,944) | 776 | 739 |
Aircraft leasing revenue | 0 | 0 | 1,602 |
Other income | 3,121 | 4,088 | 6,117 |
Total revenues | 52,367 | 58,327 | 64,406 |
Benefits, losses and expenses: | |||
Policyholder benefits and losses incurred | 32,437 | 31,345 | 28,281 |
Interest credited to policyholder account balances | 3,705 | 3,731 | 3,768 |
Amortization of deferred policy acquisition costs | 4,521 | 5,236 | 5,330 |
General operating and other expenses | 10,989 | 12,686 | 13,138 |
Interest expense | 1,260 | 1,281 | 1,718 |
Aircraft leasing expenses | 0 | 0 | 1,585 |
Loss on extinguishment of debt | 74 | 756 | 2,282 |
Net (gain) loss on sale of properties and divested businesses | (545) | 11 | (2,197) |
Total benefits, losses and expenses | 52,441 | 55,046 | 53,905 |
Income (loss) from continuing operations before income tax expense | (74) | 3,281 | 10,501 |
Income tax expense: | |||
Current | 576 | 820 | 588 |
Deferred | (391) | 239 | 2,339 |
Income tax expense | 185 | 1,059 | 2,927 |
Income (loss) from continuing operations | (259) | 2,222 | 7,574 |
Income (loss) from discontinued operations, net of income tax | (90) | 0 | (50) |
Net income (loss) | (349) | 2,222 | 7,524 |
Less: | |||
Net income (loss) from continuing operations attributable to noncontrolling interests | 500 | 26 | (5) |
Net income (loss) attributable to AIG | (849) | 2,196 | 7,529 |
Net income (loss) attributable to AIG common shareholders | $ (849) | $ 2,196 | $ 7,529 |
Basic: | |||
Income (loss) from continuing operations | $ (0.7) | $ 1.69 | $ 5.31 |
Loss from discontinued operations | (0.08) | 0 | (0.04) |
Net income (loss) attributable to AIG | (0.78) | 1.69 | 5.27 |
Diluted: | |||
Income (loss) from continuing operations | (0.7) | 1.65 | 5.24 |
Income (loss) from discontinued operations | (0.08) | 0 | (0.04) |
Net income (loss) attributable to AIG | $ (0.78) | $ 1.65 | $ 5.2 |
Weighted average shares outstanding: | |||
Basic | 1,091,085,131 | 1,299,825,350 | 1,427,959,799 |
Diluted | 1,091,085,131 | 1,334,464,883 | 1,447,553,652 |
Dividends declared per common share | $ 1.28 | $ 0.81 | $ 0.5 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $ (349) | $ 2,222 | $ 7,524 |
Other comprehensive income (loss), net of tax | |||
Change in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized | (270) | (347) | 107 |
Change in unrealized appreciation (depreciation) of all other investments | 839 | (6,762) | 5,538 |
Change in foreign currency translation adjustments | 250 | (1,100) | (832) |
Change in net derivative gains arising from cash flow hedging activities | 0 | 0 | 0 |
Change in retirement plan liabilities adjustment | (126) | 123 | (556) |
Other comprehensive income (loss) | 693 | (8,086) | 4,257 |
Comprehensive income (loss) | 344 | (5,864) | 11,781 |
Comprehensive income (loss) attributable to noncontrolling nonvoting, callable, junior and senior preferred interests | 0 | 0 | 0 |
Comprehensive income (loss) attributable to other noncontrolling interests | 500 | 20 | (5) |
Comprehensive income (loss) attributable to noncontrolling interests | 500 | 20 | (5) |
Comprehensive income (loss) attributable to AIG | $ (156) | $ (5,884) | $ 11,786 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Millions | Total | Total AIG Shareholders' Equity | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Non redeemable Non-controlling Interests |
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) | |||||
Net income (loss) attributable to AIG or other noncontrolling interests | 7,524 | 7,529 | 7,529 | (5) | ||||
Dividends | (712) | (712) | (712) | |||||
Other Comprehensive Income (Loss) | 4,257 | 4,257 | 4,257 | |||||
Current and deferred income taxes | (10) | (10) | (10) | |||||
Net decrease due to deconsolidation | (99) | (99) | ||||||
Contributions from noncontrolling interests | 17 | 17 | ||||||
Distributions to noncontrolling interests | (147) | (147) | ||||||
Other | 59 | 62 | 0 | 69 | (7) | (3) | ||
Balance at Dec. 31, 2014 | 107,272 | 106,898 | 4,766 | (19,218) | 80,958 | 29,775 | 10,617 | 374 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Common stock issued under stock plans | 13 | (13) | ||||||
Purchase of common stock | (10,895) | (10,895) | (10,895) | |||||
Net income (loss) attributable to AIG or other noncontrolling interests | 2,222 | 2,196 | 2,196 | 26 | ||||
Dividends | (1,028) | (1,028) | (1,028) | |||||
Other Comprehensive Income (Loss) | (8,086) | (8,080) | (8,080) | (6) | ||||
Current and deferred income taxes | (9) | (9) | (9) | |||||
Net increase due to acquisitions and consolidations | 231 | 231 | ||||||
Contributions from noncontrolling interests | 1 | 1 | ||||||
Distributions to noncontrolling interests | (82) | (82) | ||||||
Other | 584 | 576 | 2 | 574 | 0 | 8 | ||
Balance at Dec. 31, 2015 | 90,210 | 89,658 | 4,766 | (30,098) | 81,510 | 30,943 | 2,537 | 552 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Common stock issued under stock plans | (89) | (89) | 86 | (175) | ||||
Purchase of common stock | (11,460) | (11,460) | (11,460) | |||||
Net income (loss) attributable to AIG or other noncontrolling interests | (349) | (849) | (849) | 500 | ||||
Dividends | (1,372) | (1,372) | (1,372) | |||||
Other Comprehensive Income (Loss) | 693 | 693 | 693 | 0 | ||||
Current and deferred income taxes | (208) | (208) | (208) | |||||
Net increase due to acquisitions and consolidations | 43 | 43 | ||||||
Contributions from noncontrolling interests | 22 | 22 | ||||||
Distributions to noncontrolling interests | (570) | (570) | ||||||
Other | (62) | (73) | 1 | (63) | (11) | 11 | ||
Balance at Dec. 31, 2016 | $ 76,858 | $ 76,300 | $ 4,766 | $ (41,471) | $ 81,064 | $ 28,711 | $ 3,230 | $ 558 |
CONSOLIDATED STATEMENTS OF EQU8
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
CONSOLIDATED STATEMENTS OF EQUITY | |
Net gains (losses) attributable to redeemable noncontrolling interests | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Cash flows from operating activities: | |||
Net income (loss) | $ (349) | $ 2,222 | $ 7,524 |
(Income) loss from discontinued operations | 90 | 0 | 50 |
Noncash revenues, expenses, gains and losses included in income: | |||
Net gains on sales of securities available for sale and other assets | (2,033) | (1,111) | (764) |
Net (gains) losses on sales of divested businesses | (545) | 11 | (2,197) |
Net (gains) losses on extinguishment of debt | 74 | 756 | 2,282 |
Unrealized gains in earnings - net | 1,465 | (522) | (1,239) |
Equity in income from equity method investments, net of dividends or distributions | (54) | (481) | (1,394) |
Depreciation and other amortization | 4,090 | 4,629 | 4,448 |
Impairments of assets | 1,116 | 1,500 | 610 |
Changes in operating assets and liabilities: | |||
Insurance reserves | 5,325 | 1,645 | (2,281) |
Premiums and other receivables and payables - net | 536 | (70) | 820 |
Reinsurance assets and funds held under reinsurance treaties | (1,804) | 1,525 | 1,872 |
Capitalization of deferred policy acquisition costs | (5,216) | (5,808) | (5,880) |
Current and deferred income taxes - net | (308) | 548 | 2,190 |
Other, net | (4) | (1,967) | (1,034) |
Total adjustments | 2,642 | 655 | (2,567) |
Net cash provided by operating activities | 2,383 | 2,877 | 5,007 |
Sales or distribution of: | |||
Available for sale investments | 30,103 | 28,721 | 25,526 |
Other securities | 4,164 | 6,055 | 4,930 |
Other invested assets | 9,554 | 8,002 | 3,884 |
Divested businesses, net | 2,809 | 2,348 | |
Maturities of fixed maturity securities available for sale | 25,749 | 24,734 | 25,560 |
Principal payments received on and sales of mortgage and other loans receivable | 6,074 | 5,104 | 3,856 |
Purchases of: | |||
Available for sale investments | (54,978) | (48,848) | (45,552) |
Other securities | (935) | (2,704) | (472) |
Other invested assets | (3,421) | (3,573) | (4,078) |
Mortgage and other loans receivable | (10,651) | (10,140) | (8,008) |
Net change in restricted cash | 385 | 1,457 | (1,447) |
Net change in short-term investments | (3,089) | 1,163 | 8,760 |
Other, net | (1,020) | (1,509) | (1,023) |
Net cash provided by (used in) investing activities | 4,744 | 8,462 | 14,284 |
Proceeds from (payments for) | |||
Policyholder contract deposits | 18,100 | 17,029 | 16,829 |
Policyholder contract withdrawals | (14,041) | (14,619) | (15,110) |
Issuance of long-term debt | 5,954 | 6,867 | 6,687 |
Repayments of long-term debt | (4,082) | (9,805) | (16,160) |
Purchase of Common Stock | (11,460) | (10,691) | (4,902) |
Dividends paid | (1,372) | (1,028) | (712) |
Other, net | 68 | 818 | (6,420) |
Net cash provided by (used in) financing activities | (6,833) | (11,429) | (19,788) |
Effect of exchange rate changes on cash | 52 | (39) | (74) |
Net increase (decrease) in cash | 346 | (129) | (571) |
Cash at beginning of year | 1,629 | 1,758 | 2,241 |
Change in cash of businesses held for sale | (107) | 0 | 88 |
Cash at end of year | $ 1,868 | $ 1,629 | $ 1,758 |
Supplementary Disclosure of Con
Supplementary Disclosure of Consolidated Cash Flow Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash paid during the period for: | |||
Interest | $ 1,331 | $ 1,368 | $ 3,367 |
Taxes | 493 | 511 | 737 |
Non-cash investing/financing activities: | |||
Interest credited to policyholder contract deposits included in financing activities | 3,430 | 3,676 | 3,904 |
International Lease Finance Corporation (ILFC) | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Non-cash consideration received from sale | $ 4,586 | ||
Aer Cap | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Non-cash consideration received from sale | $ 500 | ||
UGC | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Non-cash consideration received from sale | $ 1,101 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2016 | |
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 80 countries and jurisdictions. AIG companies serve commercial 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 and voting interests), 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 the 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 fiscal-period bases. The effect on our consolidated financial condition and results of operations of all material events occurring at these subsidiar ies through the date of each of the periods presented in these Consolidated Financial Statements has been considered for adjustment and/or disclosure. The accompanying consolidated financial statements have been prepared in accordance with accounting prin ciples generally accepted in the United States (GAAP). All material intercompany accounts and transactions have been eliminated. Sales of Businesses NSM On August 31, 2016, we sold our controlling interest in NSM Insurance Group (NSM), a managing general a gent to ABRY Partners, a private equity firm, for consideration of $201 million resulting in a pre-tax gain of approximately $105 million in the third quarter of 2016. We retained an equity interest in a newly formed joint venture and will continue to prov ide underwriting capacity to NSM. We also retained exclusive renewal rights for certain business written through NSM. Ascot On September 16, 2016, we entered into an agreement to sell our 20 percent interest in Ascot Underwriting Holdings Ltd. and our 100 percent interest in the related syndicate-funding subsidiary Ascot Corporate Name Ltd. to Canada Pension Plan Investment Board (CPPIB). Total consideration for the transaction was $1.1 billion resulting in a pre-tax gain of approximately $162 million attr ibutable to AIG’s controlling interest, inclusive of CPPIB’s recapitalization of Syndicate 1414’s Funds at Lloyd’s (FAL) capital requirements. The transaction closed on November 18, 2016, and we received approximately $244 million in net cash proceeds. Kor ea Fund On November 17, 2016, an AIG sponsored Fund (the Korea Fund), completed the sale of mixed-use commercial complex in Seoul, South Kor ea commonly known as the Seoul I nternational Finance Center to Brookfield Properties for a total consideration of $2 .5 b illion , of which $1.2 billion was used to repay the fund’s debt. The sale resulted in a pr e- ta x g a in o f $1. 1 b i ll i o n incl u de d in Othe r Income, of which $464 million was attributable to AIG’s controlling interest . United Guaranty On December 31, 2016, we sold our 100 percent interest in U nited G uaranty C orporation (UGC) and certain related affiliates to Arch Capital Group Ltd. (Arch) for total consideration of $3.3 billion, consisting of $2.2 billion of cash and approximately $1.1 billion of newly issued Arch convertible non-voting common-equivalent preferred stock and reported a pre-tax gain of approximately $697 million . We also received $261 million in pre-closing dividends from UGC in the fourth quarter of 2016. Concurrent with the closing, we entered into reinsurance agreements with Arch, including an amended and restated 50 percent quota share reinsurance agreement and an aggregate excess of loss reinsurance agreement, pursuant to which we will continue to be exposed to certain UGC policies written between 2009 and 2016. In addition, see Note 4 to the Consolidated Financial Statements for information regarding expected sales of businesses that are classified as held-for-sale. 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 (Loss) through the date of the completion of the sale. In June 2015, we sold 86.9 mi llion ordinary shares of AerCap by means of an underwritten public offering of 71.2 million ordinary shares and a private sale of 15.7 million ordinary shares to AerCap. We received cash proceeds of approximat ely $ 3.7 billion, reflecting proceeds of approximately $ 3.4 billion from the underwritten offering and cash proceeds of $ 250 million from the private sale of shares to AerCap. In conn ection with the closing of the private sale of shares to AerCap, we also received $ 500 million of 6.50 % fixed-to-floating rate junior subordinated notes issued by AerCap Global Aviation Trust and guaranteed b y AerCap and certain of its subsidiaries. These notes, included in Bonds available for sale, mature in 2045 and are callable beginning in 2025. We accounted for our interest in AerCap using the equity method of accounting through the date of the June 2015 sale, and as available for sale thereafter. In August 2015, we sold our remaining 10.7 million ordinary shares of AerCap by means of an underwritten public offering and received proceeds of approximately $ 500 million. 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: 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 (loss reserves) ; 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 policy acquisition costs for investment-oriented products; impairment charges, including other-than-temporary impairments on available f or sale securities, impairments on other invested assets, including investments in life settlements, and goodwill impairment; liability for legal contingencies; and fair value measurements of certain financial assets and liabilities. These accounting estim ates 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 condition, results of operations and cash flows c ould be materially affected. Out of Period Adjustments For the year ended December 31, 2016, we recorded out of period adjustments relating to prior years that increased Net loss attributable to AIG by $174 million, increased Loss from continuing operation s before income taxes by $57 million and decreased pre-tax operating income by $6 million. The out of period adjustments are primarily related to income tax liabilities and ceded loss adjustment expenses. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net Income attributable to AIG for the years ended December 31, 2015 and 2014 would have decreased by $67 million and $12 million, respectively. For the year ended December 31, 2015, we recorded o ut of period adjustments relating to prior years that decreased Net income attributable to AIG by $156 million, decreased Income from continuing operations before income taxes by $376 million and decreased pre-tax operating income by $235 million. The out of period adjustments are primarily related to impairments of Other invested assets and changes in loss reserves and income tax liabilities. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net in come attributable to AIG for the year ended December 31, 2014 would have decreased by $51 million. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
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: HYPERLINK \l "TableOfContent" TABLE OF CONTENTS ITEM 8 | Notes to Consolidated Financial Statements | 2. Summary of Significant Accounting Policies HYPERLINK \l "TableOfContent" TABLE OF CONTENTS ITEM 8 | Notes to Consolidated Financial Statements | 2. Summary of Significant Accounting Policies AIG | 2016 Form 10-K PAGE \* Arabic \* MERGEFORMAT 1 AIG | 2016 Form 10-K PAGE \* Arabic \* MERGEFORMAT 1 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 10. Variable Interest Entities Note 11. Derivatives and Hedg e 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 cont ract 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. Earnings Per Share Note 23. Income Taxes HYPERLINK \l "TableOfContent" TABLE OF CONTENTS ITEM 8 | Notes to Consolidated Financial Statements | 2. Summary of Significant Accounting Policies HYPERLINK \l "TableOfContent" TABLE OF CONTENTS ITEM 8 | Notes to Consolidated Financial Statements | 2. Summary of Significant Accounting Policies AIG | 2016 Form 10-K PAGE \* Arabic \* MERGEFORMAT 2 AIG | 2016 Form 10-K PAGE \* Arabic \* MERGEFORMAT 3 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 e arned 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 ter ms 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, reflec ting 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. Prem iums 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 produc ts consisting of policy charges for the cost of insurance, policy administration charges, surrender charges and amortization of unearned revenue reserves. Policy fees are recognized as revenues in the period in which they are assessed against policyholders , unless the fees are designed to compensate AIG for services to be provided in the future. Fees deferred as unearned revenue are amortized in relation to the incidence of expected gross profits to be realized over the estimated lives of the contracts, si milar to DAC. 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 advisory fee income from the Consumer Insurance broker dealer business, as well as legal recoveries of $ 44 million, $ 94 million and $ 804 million from legacy crisis and other matte rs in 2016 , 2015 and 2014 , respectively. Other income from our Other Operations category consists of the following: Changes in fair value relating to financial assets and liabilities for which the fair value option has been e lected. 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 inc ome from common and preferred stock and earnings 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 sec urities 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 transact ions. Earnings from private equity funds and hedge fund investments accounted for under the equity method. Changes in the fair value of derivatives at AIG Financial Products Corp. and related subsidiaries (collectively AIGFP). Aircraft leasing expenses thr ough 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 ex penses incurred by ILFC. Cash represents cash on hand and non-interest-bearing demand deposits. Short-term investments consist of interest -bearing cash equivalents, time deposits, securities purchased under agreements to resell, and investments, such as co mmercial paper, with original maturities within one year from the date of purchase. Premiums and other receivables – net of allowance include premium balances receivable, amounts due from agents and brokers and policyholders, trade receivables for the Dire ct Investment book (DIB) and Global Capital Markets (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 doubt ful accounts on premiums and other receivables was $ 279 million and $ 333 million at December 31, 2016 and 2015 , respectively. Other assets consist of sales inducement assets, prepai d expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, restricted cash and derivative assets. We offer sales inducements which include enhanced crediting r ates 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 amo unts 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 contra ct 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 deferr ed bonus interest and other deferred sales inducement assets totaled $ 808 million and $ 845 million at December 31, 2016 and 2015 , respectively. The amortization expense associated with these asse ts is reported within Interest credited to policyholder account balances in the Consolidated Statements of Income. Such amortization expense totaled $ 77 million, $ 88 million and $ 63 mill ion for the years ended December 31, 2016 , 2015 and 2014 , respectively. The cost of buildings and furniture and equipment is depreciated principally on the straight-line basis over their estimated useful lives (maximum o f 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 de preciated. 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 c apitalized 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. Separate accounts may also include deposits for funds held under st able value wrap funding agreements, although the majority of stable value wrap sales are measured based on the notional amount included in assets under management and do not include the receipt of funds. 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, securities sold but not yet purchased and derivative liabilities. We have entered into certain insurance and reinsurance contracts, primarily in our Property Casualty Insurance Companies , 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 reduc ed. 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 b rokers 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 a t 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 stateme nt 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 a nd 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. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. 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 reme asured into that entity’s functional currency resulting in exchange gains or losses recorded in income. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income . Non-redeemable noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Accounting Standards Adopted During 2016 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 perform ance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. We adopted the standard prospectively on its required effective date of January 1, 2016. The adoption of this standard did not 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 acc ounting 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 i s more observable. We adopted the standard retrospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Amend ments 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 evalu ation of whether limited partnerships and similar legal entities are variable interest entities (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 re quired 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. We adopted the standard prospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued an acco unting standard that provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license the customer should account for the software license element of the ar rangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance does not change generally accept ed accounting principles applicable to a customer's accounting for service contracts. Consequently, all software licenses will be accounted for consistent with other licenses of intangible assets. We adopted the standard prospectively on its required effe ctive date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows . Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued an accounting standard that amends the guidance for debt issuance costs by requiring such costs to be presented as a deduction to the corresponding debt liability, rather than as an asset, and for the amortization of such costs to be reported as interest expe nse. The amendments are intended to simplify the presentation of debt issuance costs and make it consistent with the presentation of debt discounts or premiums. The amendments, however, do not change the recognition and measurement guidance applicable to debt issuance costs. We adopted the standard retrospectively on its required effective date of January 1, 2016. Because the new standard did not affect accounting recognition or measurement of debt issuance costs, the adoption of the standard did not hav e a material effect on our consolidated financial condition, results of operations or cash flows. Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent) In May 2015, the FASB amended standard on fair value disclosures for investments for which fair value is measured using the net asset value (NAV) per share (or its equivalent) as a practical expedient. The amendment s in this update remove the requirement to categorize within the fair value hierarchy a ll investments for which fair value is measured using the NAV per share practical expedient. In addition, the amendment removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV pe r share as a practical expedient. We adopted the standard retrospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or c ash flows. Short Duration Insurance Contracts In May 2015, the FASB issued an accounting standard that requires additional disclosures for short-duration insurance contracts. New disclosures about the liability for unpaid losses and loss adjustment expens es and net incurred losses and loss adjustment expenses are now required (including accident year information). The annual disclosures by accident year include: disaggregated net incurred and paid claims development tables segregated by business type (not required to exceed 10 years), reconciliation of total net reserves included in development tables to the reported liability for unpaid losses and loss adjustment expenses, incurred but not reported (IBNR) information, quantitative information and a qualita tive description about claim frequency, and the average annual percentage payout of incurred claims. Further, the new standard requires, when applicable, disclosures about discounting liabilities for unpaid losses and loss adjustment expenses and significa nt changes and reasons for changes in methodologies and assumptions used to determine unpaid losses and loss adjustment expenses. We adopted this standard on its required effective date of December 31, 2016. The required disclosures, reflected in Note 13 , did not have any effect on our consolidated financial condition, results of operations or cash flows. In addition, the roll forward of the liability for unpaid losses and loss adjustment expenses currently disclosed in the annual financial statements wil l be disclosed as required for interim periods beginning in the first quarter of 2017. Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued an accounting standard that requires management to evaluate and disclose if there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern even if the entity’s liquidation is not imminent. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but this new standard requires an evaluation to determine whether to disclose information about the relevant conditions and events. Currently under U.S. GAAP there is no guidance about management’s re sponsibility under this standard. U.S. auditing standards and federal securities law require that an auditor evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time not to exceed one year beyond the date of the financial statements being audited. We adopted the standard on its required effective date of December 31, 2016. The adoption of this standard did not have an effect on our consolidated financial condition, results of op erations or cash flows. Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued a standard that simplifies several aspects of the accounting for share-based compensation, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We elected early-adoption of the Standard , effective January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Future Application of Accounting Standards 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 certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other activities. The standard is effective on January 1, 2018 and may be applied retrospec tively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is permitted as of January 1, 2017, including interim periods. We are currently evaluating the impact to our revenue sources that are in scope of the standard. However, as the majority of our revenue sources are not in scope of the standard, we do not expect the adoption of the standard to have a material effect on our reported consolidated financial condition, results of operations or cash flows . R ecognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued an accounting standard that will require equity investments that do not follow the equity method of accounting or are not subject to consolidation to be measured at fair value with changes in fair value recognized in earnings, while financial liabilities for which fair value option accounting has been elected, changes in fair value due to instrument-specific credit risk will be presented separately in o ther comprehensive income. The standard allows the election to record equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes with changes in the carrying value of the equity in vestments recorded in earnings. The standard also updates certain fair value disclosure requirements for financial instruments carried at amortized cost. The standard is effective on January 1, 2018, with early adoption of certain provisions permitted. We are assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows. Leases In February 2016, the FASB issued an accounting standard that will require lessees with lease terms of more than 12 mon ths to recognize a right of use asset and a corresponding lease liability on their balance sheets. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. The standard i s effective on January 1, 2019, with early adoption permitted using a modified retrospective approach. We are assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows. We are currently quan tifying the expected gross up of our balance sheet for a right to use asset and a lease liability as required by the standard. Derivative Contract Novations In March 2016, the FASB issued an accounting standard that clarifies that a change in the counterpa rty (novation) to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. We will adopt the standard on its January 1, 2017 effective date, and do not expect the adoption of the standard will have a material effect on our reported consolidated financial condition, results of operations or cash flows. Contingent Put and Call Options in Debt I nstruments In March 2016, the FASB issued an accounting standard that clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their d ebt hosts. The standard requires an evaluation of embedded call (put) options solely on a four-step decision sequence that requires an entity to consider whether (1) the amount paid upon settlement is adjusted based on changes in an index, (2) the amount p aid upon settlement is indexed to an underlying other than interest rates or credit risk, (3) the debt involves a substantial premium or discount and (4) the put or call option is contingently exercisable. We will adopt the standard on its January 1, 2017 effective date, and do not expect the adoption of the standard to have a material effect on our reported consolidated financial condition, results of operations or cash flows. Simplifying the Transition to the Equity Method of Accounting In March 2016, the FASB issued an accounting standard that eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods during which the investment had been held. We will adopt the standard on its January 1, 2017 effectiv e date, and do not expect the adoption of the standard to have a material effect on our reported consolidated financial condition, results of operations or cash flows. Financial Instruments - Credit Losses In June 2016, the FASB issued an accounting standa rd that will change how entities account for credit losses for most financial assets. The standard will replace the existing incurred loss impairment model with a new “current expected credit loss model” and will apply to financial assets subject to credi t losses, those measured at amortized cost and certain off-balance sheet credit exposures. The impairment for available-for-sale debt securities will be measured in a similar manner, except that losses will be recognized as allowances rather than reductio ns in the amortized cost of the securities. The standard will also require additional information to be disclosed in the footnotes. The standard is effective on January 1, 2020, with early adoption permitted on January 1, 2019. We are assessing the impac t of the standard on our reported consolidated financial condition, results of operations and cash flows, but we expect an increase in our allowances for credit losses. The amount of the increase will be impacted by our portfolio composition and quality a t the adoption date as well as economic conditions and forecasts at that time. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued an accounting standard that addresses diversity in how certain cash receipts and cash p ayments are presented and classified in the statement of cash flows. The amendments provide clarity on the treatment of eight specifically defined types of cash inflows and outflows. The standard is effective on January 1, 2018, with early adoption permitt ed as long as all amendments are included in the same period. The standard addresses presentation in the Statement of Cash Flows only and will have no effect on our reported consolidated financial condition or results of operations. Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued an accounting standard that will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the asset is sold to a third party. The standard is effective on January 1, 2018, with early adoption permitted. We are assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows. Interest Held through Related Parties that are under Common Control In October 2016, the FASB issued an accounting standard that amends the consolidation analysis for a reporting entity that is the single decision maker of a VIE. The new guidance will req uire the decision maker’s evaluation of its interests held through related parties that are under common control on a proportionate basis (rather than in their entirety) when determining whether it is the primary beneficiary of that VIE. The amendment doe s not change the characteristics of a primary beneficiary. We will adopt the standard on its January 1, 2017 effective date, and do not expect the impact of the standard to have a material effect on our reported consolidated financial condition, results of operations or cash flows. Restricted Cash In November 2016, the FASB issued an accounting standard that provides guidance on the presentation of restricted cash in the Statement of Cash Flows. Entities will be required to explain the changes during a reporting period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents in the statement of cash flows. The standard is effective on January 1, 2018, with early adoption permitted. The s tandard addresses presentation of restricted cash in the Statement of Cash Flows only and will have no effect on our reported consolidated financial condition or results of operations. Clarifying the Definition of a Business In January 2017, the FASB issued an accounting standard that changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The new standard will require an entity to evaluate if substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar assets; if so, the set of transferred assets and activities is not a business. At a minimum, a set must include an input and a substantive process that together significantly contribute to the ability to create output. The standard is effective on January 1, 2018, with early adoption permitted. We are assessing the impact of early-adopting the standard on our reported consolidated financial condition, results of operations and cash flows. Because the standard requires prospective adoption, the impact is dependent on future acquisitions and dispositions. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 3. Segment Information We report our results of operations consistent with the manner in which our chief operating decision makers review the business to assess performance and allocate resources. In the fourth quarter of 2016, we finalized our plan to reorganize our operating model into “modular”, more self-contained business units. Prior to the fourth quarter of 2016, we reported our results as follows: Commercial Insurance business included our Property Casualty operating segment; Consumer Insurance business included our Retirement, Life and Personal Insurance operating segments Corporate and Other category consisted of businesses and items not allocated to our operating segments, including United Guaranty and Institutional Markets. We now report our results of operations as follows: Commercial Insurance Commercial Insurance business is presented as two operating segments: Liability and Financial Lines — Liability products include general liability, environmental, commercial automobile liability, work ers’ compensation, excess casualty and crisis management insurance products. Liability also includes risk-sharing and other customized structured programs for large corporate and multinational customers. Financial Lines products include professional liabil ity insurance for a range of businesses and risks, including directors and officers liability (D&O), fidelity, employment practices, fiduciary liability, cybersecurity risk, kidnap and ransom, and errors and omissions insurance (E&O). Property and Special Risks — Property products include commercial, industrial and energy-related property insurance products and services that cover exposures to man-made and natural disasters, including business interruption. Specialty products include aerospace, political r isk, trade credit, surety and marine insurance, and various small and medium sized enterprises insurance lines. Consumer Insurance Consumer Insurance business is presented as four operating segments: Individual Retirement — consists of fixed annuities, fixed index annuities, variable annuities and retail mutual funds. Group Retirement — consists of group mutual funds, group fixed annuities, group variable annuities, individual annuity and investment products, financial planning and advisory services. Life Insurance — primary products in the U.S. include term life and universal life insurance. Personal Insurance — consists of personal auto and property insurance, voluntary and sponsor-paid personal accident and supplemental health products for individuals, employees , associations and other organizations, a broad range of travel insurance products and services for leisure and business travelers as well as extended warranty insurance covering electronics, appliances, and HVAC industries. Other Operations The Other Ope rations category consists of: Institutional Markets — consists of stable value wrap products, structured settlement and terminal funding annuities, corporate- and bank-owned life insurance and guaranteed investment contracts (GICs). Income from assets held by AIG Parent and other corporate subsidiaries. General operating expenses not attributable to specific reporting segments. Interest expense. United Guaranty — Mortgage insurance protects mortgage lenders and investors against the increased risk of borrower default related to high loan-to-value mortgages. The sale of this business was completed on December 31, 2016. Fuji Life — consists of term insurance, li fe insurance, endowment policies and annuities. On November 14, 2016, we entered into an agreement to sell our Japan life insurance business, AIG Fuji Life Insurance Company, Ltd. (AFLI), to FWD Group, the insurance arm of Pacific Century Group. Legacy Po rtfolio The Legacy Portfolio segment consists of: Legacy Insurance Lines represent exited or discontinued product lines, policy forms or distribution channels. Legacy Property and Casualty Run-Off Insurance Lines — include excess workers’ compensation, asbestos and environmental exposures. Legacy Life Insurance Run-Off Lin es — include whole life, long term care and exited Accident & Health product lines. Also includes certain structured settlement, terminal fundin g and single premium immediate annuities written prior to April 2012 . Legacy Investments — include investment classes that AIG has placed into run-off (life settlements, Legacy Global Real Estate, the Direct Investment book ) and eq uity-like securities with high yield/ high-risk characteristics. On December 31, 2016, we completed the sale of UGC to Arch. See Note 1 for a further discussion. In the second quarter of 2015, a United Guaranty subsidiary and certain of our property casualty companies entered into a 50 percent quota share reinsurance agreement whereby the United Guaranty subsidiary (1) ceded 50 percent of the risk relating to policies written in 2014 that were current as of January 1, 2015 and (2) ceded 50 percent of the risk relating to all policies written in 2015 and 2016, each in exchange for a 30 percent ceding commission and reimbursements of 50 percent of the losses and loss adjustment expenses incurred on covered policies. Beginning in the third quarter of 201 6, the effect of this intercompany reinsurance arrangements is included in the results of Property and Special Risks and Other Operations for all periods presented. Previously, this arrangement was eliminated for purposes of segment reporting. Concurrent w ith the closing of the sale of UGC, we amended and restated this arrangement and expect the results of this arrangement to continue to be reported in Property and Special Risks. Investment income of the Property Casualty Insurance Companies is attributed to the Liability and Financial Lines, Property and Special Risks and Personal Insurance operating segments based on an internal investment income allocation model. The model estimates investable funds based primarily on loss reserves and unearned premiums. Investment income of the Life Insurance Companies is attributed to the Individual Retirement, Group Retirement and Life Insurance operating segments as well as the Institutional Markets business and the Legacy Life Insurance Run-Off Lines based on investe d assets in segregated product line portfolios; income from invested assets in excess of liabilities is allocated to product lines based on internal capital estimates. We evaluate segment performance based on operating revenues and pre-tax operating income (loss). Operating revenues and pre-tax operating income (loss) is derived by excluding certain items from total revenues and net income (loss) attributable to AIG, respectively. See the table below for the items excluded from operating revenues and pre-t ax operating income (loss). Legal Entities Certain of our management activities, such as investment management, enterprise risk management, liquidity management and capital management are conducted on a legal entity basis. We group our insurance-related l egal entities into two categories: Property Casualty Insurance Companies, and Life Insurance Companies. Property Casualty Insurance Companies include the following major operating companies: National Union Fire Insurance Company of Pittsburgh, Pa. (Nation al 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); AIU Insurance Company, Ltd. (AIUI Japan); AIG Asia Pacific Insurance, Pte, Ltd.; and AIG Europe Limited. Life Insurance Companies include the following major operating companies: American General Life Insurance Company (American General Life), The Variable Annuity Life Insurance Company (V ALIC) and The United States Life Insurance Company in the City of New York (U.S. Life). The following table presents AIG’s continuing operations by operating segment: Net Pre-Tax Total Investment Interest Amortization Operating (in millions) Revenues Income Expense of DAC Income (Loss) 2016 Commercial Insurance Liability and Financial Lines $ 13,270 $ 2,700 $ 10 $ 1,098 $ (2,649) Property and Special Risks 8,098 568 7 951 (86) Total Commercial Insurance 21,368 3,268 17 2,049 (2,735) Consumer Insurance Individual Retirement 5,758 3,878 49 298 2,269 Group Retirement 2,769 2,146 27 129 931 Life Insurance 3,818 1,035 13 182 (37) Personal Insurance 11,704 286 11 2,072 686 Total Consumer Insurance 24,049 7,345 100 2,681 3,849 Other Operations 4,018 770 983 76 (748) Legacy Portfolio 5,250 2,913 260 108 1,007 AIG Consolidation and elimination (494) (351) (100) (117) 42 Total AIG Consolidated operating revenues and pre-tax operating income $ 54,191 $ 13,945 $ 1,260 $ 4,797 $ 1,415 Reconciling Items from pre-tax operating income to pre-tax income (loss): Changes in fair value of securities used to hedge guaranteed living benefits 120 120 - - 120 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - (276) 195 Other income (expense) - net - - - - 42 Loss on extinguishment of debt - - - - (74) Net realized capital gains (1,944) - - - (1,944) Income from divested businesses - - - - 545 Non-operating litigation reserves and settlements 44 - - - 41 Reserve development related to non-operating run-off insurance business - - - - - Net loss reserve discount benefit (charge) - - - - 427 Pension expense related to a one-time lump sum payment to former employees - - - - (147) Restructuring and other costs - - - - (694) Other (44) - - - - Revenues and Pre-tax income (loss) $ 52,367 $ 14,065 $ 1,260 $ 4,521 $ (74) 2015 Commercial Insurance Liability and Financial Lines $ 14,684 $ 2,818 $ 5 $ 1,439 $ (661) Property and Special Risks 8,452 603 3 910 1,226 Total Commercial Insurance 23,136 3,421 8 2,349 565 Consumer Insurance Individual Retirement 6,450 3,805 27 431 1,812 Group Retirement 2,834 2,192 15 50 1,100 Life Insurance 3,771 1,034 7 311 (51) Personal Insurance 11,475 325 5 1,970 68 Total Consumer Insurance 24,530 7,356 54 2,762 2,929 Other Operations 4,650 706 1,030 49 (567) Legacy Portfolio 5,771 2,928 280 102 1,133 AIG Consolidation and elimination (496) (315) (91) (26) (76) Total AIG Consolidated operating revenues and pre-tax operating income $ 57,591 $ 14,096 $ 1,281 $ 5,236 $ 3,984 Reconciling Items from pre-tax operating income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits (43) (43) - - (43) Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - - (15) Other income (expense) - net - - - - (233) Loss on extinguishment of debt - - - - (756) Net realized capital gains 776 - - - 776 Loss from divested businesses (48) - - - (59) Non-operating litigation reserves and settlements 94 - - - 82 Reserve development related to non-operating run-off insurance business - - - - (30) Net loss reserve discount benefit (charge) - - - - 71 Restructuring and other costs - - - - (496) Other (43) - - - - Revenues and Pre-tax income $ 58,327 $ 14,053 $ 1,281 $ 5,236 $ 3,281 2014 Commercial Insurance Liability and Financial Lines $ 16,012 $ 3,410 $ 1 $ 1,464 $ 3,044 Property and Special Risks 8,650 845 - 1,033 1,203 Total Commercial Insurance 24,662 4,255 1 2,497 4,247 Consumer Insurance Individual Retirement 6,739 4,103 14 315 2,306 Group Retirement 3,005 2,349 8 31 1,229 Life Insurance 3,630 1,100 4 221 290 Personal Insurance 12,339 372 1 2,088 381 Total Consumer Insurance 25,713 7,924 27 2,655 4,206 Other Operations 3,596 749 1,291 45 (958) Legacy Portfolio 7,353 3,245 390 81 2,576 AIG Consolidation and elimination (323) (354) 9 (4) (19) Total AIG Consolidated operating revenues and pre-tax operating income $ 61,001 $ 15,819 $ 1,718 $ 5,274 $ 10,052 Reconciling Items from pre-tax operating income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 260 260 - - 260 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - 56 (217) Loss on extinguishment of debt - - - - (2,282) Net realized capital gains 739 - - - 739 Loss from divested businesses 1,602 - - - 2,169 Non-operating litigation reserves and settlements 804 - - - 258 Reserve development related to non-operating run-off insurance business - - - - - Net loss reserve discount benefit (charge) - - - - (478) Restructuring and other costs - - - - - Other - - - - - Revenues and Pre-tax income $ 64,406 $ 16,079 $ 1,718 $ 5,330 $ 10,501 The following table presents AIG’s year-end identifiable assets and capital expenditures by legal entity category: Year-End Identifiable Assets Capital Expenditures (in millions) 2016 2015 2016 2015 Property Casualty Insurance Companies $ 118,268 $ 114,134 $ 685 $ 965 Life Insurance Companies 207,145 258,003 85 102 Other 184,704 136,487 349 655 AIG Consolidation and Elimination (11,853) (11,782) - - Total Assets $ 498,264 $ 496,842 $ 1,119 $ 1,722 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) 2016 2015 2014 2016 2015 2014 U.S. $ 37,405 $ 41,623 $ 40,291 $ 734 $ 912 $ 819 Europe 4,613 5,772 6,140 145 171 154 Japan 3,636 4,293 3,641 524 449 400 Other 6,713 6,639 14,334 1,257 1,603 1,327 Consolidated $ 52,367 $ 58,327 $ 64,406 $ 2,660 $ 3,135 $ 2,700 * Revenues are generally reported according to the geographic location of the reporting unit. |
HELD-FOR-SALE CLASSIFICATION
HELD-FOR-SALE CLASSIFICATION | 12 Months Ended |
Dec. 31, 2016 | |
HELD-FOR-SALE CLASSIFICATION | |
HELD-FOR-SALE CLASSIFICATION | 4. Held-For-Sale Classification Held-For-Sale Classification We report a business as held-for-sale when management has approved the sale 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. Assets and liabilities related to the businesses classified as held-for-sale are separately reported in our Consolidated Balance Sheets beginning in the period in which the business is classified as held-for-sale. At December 31, 2016 , the following businesses were reported as held-for-sale: United Guaranty Asia On August 15, 2016, we entered into a definitive agreement to sell our 100 percent inte rest in UGC and certain related affiliates to Arch. This transaction closed on December 31, 2016 and we received proceeds of approximately $3.3 billion, consisting of $2.2 billion of cash, and approximately $1.1 billion of newly issued Arch convertible non -voting common-equivalent preferred stock. We also received $261 million in pre-closing dividends from UGC in the fourth quarter of 2016. However, due to pending regulatory approvals, United Guaranty Asia was not included in the December 31, 2016 closing and $40 million of cash consideration was retained by Arch. The closing with respect to United Guaranty Asia is expected to occur during the first quarter of 2017, at which time AIG will receive the remaining consideration. Sale of Certain Insurance Subs idiary Operations to Fairfax On October 18, 2016, we entered into agreements to sell certain insurance operations to Fairfax Financial Holdings Limited (Fairfax). The agreements include the sale of our subsidiary operations in Argentina, Chile, Colombia, U ruguay and Venezuela, as well as insurance operations in Turkey. Fairfax will also acquire renewal rights for the portfolios of local business written by our operations in Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovakia, and assume certain of our operating assets and employees. Total cash consideration to us is expected to be approximately $240 million. The transactions are subject to obtaining the relevant regulatory approvals and other customary closing conditions. AIG Fuji Life Insurance On November 14, 2016, we entered into an agreement to sell AFLI to FWD Group, the insurance arm of Pacific Century Group. Consummation of the transaction is subject to customary closing conditions, including regulatory and other approvals. Total cash co nsideration to us is expected to be approximately $346 million. The sale resulted in a pr e- ta x loss of $467 m i ll i o n. The following table summarizes the components of assets and liabilities held-for-sale on the Consolidated Balance Sheets at December 31, 2016 : December 31, (in millions) 2016 Assets: Fixed maturity securities $ 6,045 Equity securities 149 Mortgage and other loans receivable, net 137 Other invested assets 2 Short-term investments 130 Cash 133 Accrued investment income 21 Premiums and other receivables, net of allowance 351 Reinsurance assets, net of allowance 8 Deferred policy acquisition costs 471 Other assets 273 Assets of businesses held for sale 7,720 Less: Loss Accrual (521) Total assets held for sale $ 7,199 Liabilities: Liability for unpaid losses and loss adjustment expenses $ 402 Unearned premiums 297 Future policy benefits for life and accident and health insurance contracts 4,579 Other policyholder funds 378 Long-term debt - Other liabilities 450 Total liabilities held for sale $ 6,106 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
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 assumpt ions. 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 m easuring 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 les s 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 instru ment 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 Sheet s 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 Lev el 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 us e 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 dif ferent 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 Ris k. 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. We calculate the effect of credit spread changes using discounted cash flow techniques that incorporate current market interest rates. A derivative counterparty’s net credit exposure to us is determined based on master netting agreements, wh en applicable, which take into consideration all derivative positions with us, as well as collateral we post with the counterparty at the balance sheet date. For a description of how we incorporate our own credit risk in the valuation of embedded derivati ves related to certain annuity and life insurance products, see Embedded Derivatives within Policyholder Contract Deposits, below. 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 f ixed 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. For fair values measured based on int ernal models, t he 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 rat es. 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 l iabilities, 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 securitie s at fair v alue . 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 mark et - 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-par ty 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 va rious 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 fo r comparable securities, benchmark yields, interest rate yield curves, credit spreads, prepayment rates, default rates, recovery assumptions, currency rates, quoted prices for similar securities and other market - observable information, as applicable. If fa ir 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, inter est 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 provider s are accurately recorded, that their data inputs and valuation techniques are appropriate a nd 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 provider s through various analytical techniques, and have procedures to escalate related questions internally and to the independent third - party valuation service provider s for resolution. T o assess the degree of pricing consensus among various valuation service p rovider s 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 provider s to be used for pa rticular 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 t o 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 considera tion 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, loss severity assumptions, 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 mana gement 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 evi dence. 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 ) , o ther 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 determinat ion 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 releva nt 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 subseque ntly 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 limi ted 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 a s 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 regi stered 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 transact ions 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 mode ls 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 model s 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 t hat 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 f air 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 cre dit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. We value our super senior credit default swap portfolio using prices obtained from vendors and/or co unterparties. 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. Our valuation metho dologies 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 assum ptions of the methodologies o n a regular basis. Embedded Derivatives within Policyholder Contract Deposits Certain variable annuity and equity - indexed annuity and life contracts contain embedded derivatives that we bifurcate from the host contracts and account for separately at fair value, with changes in fai r value recognized in earnings. These embedded derivatives are classified within Policyholder contract deposits. We have concluded these contracts contain eit her (i) a written option that guarantees a minimum accumulation value at maturity , (ii) a written option that guarantee s annual withdrawals regardless of underlying market performance for a specific period or for life, or (iii) equity - indexed written optio ns that meet the criteria of derivatives and must be bifurcated. The fair value of embedded derivatives contained in certain variable annuity and equity - indexed annuity and life contracts is measured based on actuarial and capital market assumptions relate d to projected cash flows over the expected lives of the contracts. These discounted cash flow projections primarily include benefits and related fees assessed, when applicable . In some instances, the projected cash flows from fees may exceed projected cas h flows related to benefit payments and therefore, at a point in time, the carrying value of the embedded derivative may be in a net asset position. The projected cash flows incorporate best estimate assumptions for policyholder behavior (including mortali ty, lapses, withdrawals and benefit utilization), along with an explicit risk margin to reflect a market participant ’s estimates of projected cash flows and policyholder behavior. Estimates of future policyholder behavior are subjective and based primarily on our historical experience. B ecause of the dynamic and complex nature of the proj ected cash flows w ith respect to embedded derivatives in our variable annuity con tracts, risk neutral valuations are used, which are calibrated to observable interest rate and equity option prices . Estimating the underlying cash flows for these products involves judgment s regarding expected market rates of return, market volatility, credit spreads, correlations of certain market variables , fund performance, discount rates an d 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 derivatives, and related fees are classified in net realized gain/loss as earned, cons istent with other changes in the fair value of these embedded policy derivatives. Any portion of the fees not attributed to the embedded derivatives are excluded from the fair value measurement and classified in policy fees as earned. With respect to embe dded 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 our ability to adjust the participation rate and the cap on equity - indexed credited rates in light of market conditions and policyholder behavior assumptions. Projected cash flows are discounted using the interest rate swap curve (swap curve), which is co mmonly 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. We also incorporate our own risk of non-performance in the valuation of the embedded derivatives associated with variable annuity and equity - indexed annuity and life contracts. The non-performance risk adjustment reflects a market participant’s view of our c laims-paying ability by incorporating an additional spread to the swap curve used to discount projected benefit cash flows in the valuation of these embedded derivatives. The non-performance risk adjustment is calculated by constructing forward rates based on a weighted average of observable corporate credit indices to approximate the claims-paying ability rating of our Life Insurance Companies. Long-Term Debt The fair value of non-structured liabilities is ge nerally 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 a re 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. Borr owings 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 7.62 percent . Other Liabilities Other liabilities measured at fair value include certain securities sold under agreements to repurchase and certain securities sold but not yet purchas ed. 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 methodo logy 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: December 31, 2016 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (b) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 63 $ 1,929 $ - $ - $ - $ 1,992 Obligations of states, municipalities and political subdivisions - 22,732 2,040 - - 24,772 Non-U.S. governments 52 14,466 17 - - 14,535 Corporate debt - 131,047 1,133 - - 132,180 RMBS - 20,468 16,906 - - 37,374 CMBS - 12,231 2,040 - - 14,271 CDO/ABS - 8,578 7,835 - - 16,413 Total bonds available for sale 115 211,451 29,971 - - 241,537 Other bond securities: U.S. government and government sponsored entities - 2,939 - - - 2,939 Obligations of states, municipalities and political subdivisions - - - - - - Non-U.S. governments - 51 - - - 51 Corporate debt - 1,755 17 - - 1,772 RMBS - 420 1,605 - - 2,025 CMBS - 448 155 - - 603 CDO/ABS - 905 5,703 - - 6,608 Total other bond securities - 6,518 7,480 - - 13,998 Equity securities available for sale: Common stock 1,056 9 - - - 1,065 Preferred stock 752 - - - - 752 Mutual funds 260 1 - - - 261 Total equity securities available for sale 2,068 10 - - - 2,078 Other equity securities 482 - - - - 482 Mortgage and other loans receivable - - 11 - - 11 Other invested assets (a) - 1 204 - - 205 Derivative assets: Interest rate contracts - 2,328 - - - 2,328 Foreign exchange contracts - 1,320 - - - 1,320 Equity contracts 188 59 58 - - 305 Credit contracts - - 2 - - 2 Other contracts - 6 16 - - 22 Counterparty netting and cash collateral - - - (1,265) (903) (2,168) Total derivative assets 188 3,713 76 (1,265) (903) 1,809 Short-term investments 2,660 681 - - - 3,341 Separate account assets 77,318 5,654 - - - 82,972 Total $ 82,831 $ 228,028 $ 37,742 $ (1,265) $ (903) $ 346,433 Liabilities: Policyholder contract deposits $ - $ 25 $ 3,033 $ - $ - $ 3,058 Other policyholder funds 5 - - - - 5 Derivative liabilities: Interest rate contracts - 3,039 38 - - 3,077 Foreign exchange contracts - 1,358 11 - - 1,369 Equity contracts 12 7 - - - 19 Credit contracts - - 331 - - 331 Other contracts - 1 5 - - 6 Counterparty netting and cash collateral - - - (1,265) (1,521) (2,786) Total derivative liabilities 12 4,405 385 (1,265) (1,521) 2,016 Long-term debt - 3,357 71 - - 3,428 Other liabilities - - - - - - Total $ 17 $ 7,787 $ 3,489 $ (1,265) $ (1,521) $ 8,507 December 31, 2015 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (b) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ - $ 1,844 $ - $ - $ - $ 1,844 Obligations of states, municipalities and political subdivisions - 25,199 2,124 - - 27,323 Non-U.S. governments 683 17,480 32 - - 18,195 Corporate debt - 134,618 1,370 - - 135,988 RMBS - 19,690 16,537 - - 36,227 CMBS - 10,986 2,585 - - 13,571 CDO/ABS - 8,928 6,169 - - 15,097 Total bonds available for sale 683 218,745 28,817 - - 248,245 Other bond securities: U.S. government and government sponsored entities - 3,369 - - - 3,369 Obligations of states, municipalities and political subdivisions - 75 - - - 75 Non-U.S. governments - 50 - - - 50 Corporate debt - 2,018 17 - - 2,035 RMBS - 649 1,581 - - 2,230 CMBS - 557 193 - - 750 CDO/ABS - 1,218 7,055 - - 8,273 Total other bond securities - 7,936 8,846 - - 16,782 Equity securities available for sale: Common stock 2,401 - - - - 2,401 Preferred stock 22 - - - - 22 Mutual funds 491 1 - - - 492 Total equity securities available for sale 2,914 1 - - - 2,915 Other equity securities 906 1 14 - - 921 Mortgage and other loans receivable - - 11 - - 11 Other invested assets (a) 2 1 332 - - 335 Derivative assets: Interest rate contracts - 3,150 12 - - 3,162 Foreign exchange contracts - 766 - - - 766 Equity contracts 91 32 54 - - 177 Credit contracts - - 3 - - 3 Other contracts - 2 21 - - 23 Counterparty netting and cash collateral - - - (1,268) (1,554) (2,822) Total derivative assets 91 3,950 90 (1,268) (1,554) 1,309 Short-term investments 1,416 1,175 - - - 2,591 Separate account assets 73,699 5,875 - - - 79,574 Total $ 79,711 $ 237,684 $ 38,110 $ (1,268) $ (1,554) $ 352,683 Liabilities: Policyholder contract deposits $ - $ 36 $ 2,289 $ - $ - $ 2,325 Other policyholder funds 6 - - - - 6 Derivative liabilities: Interest rate contracts - 2,137 62 - - 2,199 Foreign exchange contracts - 1,197 7 - - 1,204 Equity contracts - 68 - - - 68 Credit contracts - - 508 - - 508 Other contracts - - 69 - - 69 Counterparty netting and cash collateral - - - (1,268) (760) (2,028) Total derivative liabilities - 3,402 646 (1,268) (760) 2,020 Long-term debt - 3,487 183 - - 3,670 Other liabilities - 62 - - - 62 Total $ 6 $ 6,987 $ 3,118 $ (1,268) $ (760) $ 8,083 (a) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $ 6.7 billion and $ 8.6 billion as of December 31, 2016 and December 31, 2015 , respectively. (b) Represents netting of derivative exposures covered by qualifying master netting agreements. 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. Conve rsely, 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, 2016 and 2015 , we transferred $ 1.1 b illion and $ 0.7 b illion, 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, 2016 and 2015 , we transferred $ 34 million and $ 181 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 Leve l 2 to Level 1 during the years ended December 31, 2016 and 2015 . Changes in Level 3 R ecurring F air V alue M easurements The following tables present changes during the years ended December 31, 2016 and 2015 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 Sheet s at December 31, 2016 and 2015 : Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year December 31, 2016 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,124 $ 5 $ - $ 61 $ 2 $ (152) $ - $ - $ 2,040 $ - Non-U.S. governments 32 (3) (12) 7 1 (5) - (3) 17 - Corporate debt 1,370 (13) (42) (111) 920 (977) (14) - 1,133 - RMBS 16,537 970 (24) (878) 330 (29) - - 16,906 - CMBS 2,585 72 (132) (323) 23 (185) - - 2,040 - CDO/ABS 6,169 34 (111) 1,720 23 - - - 7,835 - Total bonds available for sale 28,817 1,065 (321) 476 1,299 (1,348) (14) (3) 29,971 - Other bond securities: Corporate debt 17 - - - - - - - 17 - RMBS 1,581 43 - (1) - (18) - - 1,605 (24) CMBS 193 - - (38) - - - - 155 (1) CDO/ABS 7,055 271 - (1,623) 65 (65) - - 5,703 (393) Total other bond securities 8,846 314 - (1,662) 65 (83) - - 7,480 (418) Equity securities available for sale: Common stock - - - - - - - - - - Total equity securities available for sale - - - - - - - - - - Other equity securities 14 - - (14) - - - - - - Mortgage and other loans receivable 11 - - - - - - - 11 - Other invested assets 332 1 - (75) - (54) - - 204 8 Total $ 38,020 $ 1,380 $ (321) $ (1,275) $ 1,364 $ (1,485) $ (14) $ (3) $ 37,666 $ (410) Net Changes in |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 or 2015 . 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 separ ate 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 Other Operations ). Investments in fixed maturity and equity securities are recorded on a trade-date basis. Premiums and discounts arising from the purc hase 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), rec ognized 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 updat ed 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 a re 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 ex pected 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 n effective level -yield basis. Subsequently, effecti ve 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 d ue 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) December 31, 2016 Bonds available for sale: U.S. government and government sponsored entities $ 1,870 $ 148 $ (26) $ 1,992 $ - Obligations of states, municipalities and political subdivisions 24,025 1,001 (254) 24,772 - Non-U.S. governments 14,018 773 (256) 14,535 - Corporate debt 126,648 7,271 (1,739) 132,180 (31) Mortgage-backed, asset-backed and collateralized: RMBS 35,311 2,541 (478) 37,374 1,212 CMBS 14,054 409 (192) 14,271 45 CDO/ABS 16,315 278 (180) 16,413 39 Total mortgage-backed, asset-backed and collateralized 65,680 3,228 (850) 68,058 1,296 Total bonds available for sale (b) 232,241 12,421 (3,125) 241,537 1,265 Equity securities available for sale: Common stock 708 369 (12) 1,065 - Preferred stock 748 4 - 752 - Mutual funds 241 23 (3) 261 - Total equity securities available for sale 1,697 396 (15) 2,078 - Total $ 233,938 $ 12,817 $ (3,140) $ 243,615 $ 1,265 December 31, 2015 Bonds available for sale: U.S. government and government sponsored entities $ 1,698 $ 155 $ (9) $ 1,844 $ - Obligations of states, municipalities and political subdivisions 26,003 1,424 (104) 27,323 19 Non-U.S. governments 17,752 805 (362) 18,195 - Corporate debt 133,513 6,462 (3,987) 135,988 (87) Mortgage-backed, asset-backed and collateralized: RMBS 33,878 2,760 (411) 36,227 1,326 CMBS 13,139 561 (129) 13,571 185 CDO/ABS 14,985 360 (248) 15,097 39 Total mortgage-backed, asset-backed and collateralized 62,002 3,681 (788) 64,895 1,550 Total bonds available for sale (b) 240,968 12,527 (5,250) 248,245 1,482 Equity securities available for sale: Common stock 913 1,504 (16) 2,401 - Preferred stock 19 3 - 22 - Mutual funds 447 53 (8) 492 - Total equity securities available for sale 1,379 1,560 (24) 2,915 - Total $ 242,347 $ 14,087 $ (5,274) $ 251,160 $ 1,482 ( a ) Represents the amount of other-than-temporary impairments recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date. (b) At December 31, 2016 and 2015 , bonds available for sale held by us that were below investment grade or not rated totaled $ 33.6 billion and $ 34.9 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 December 31, 2016 Bonds available for sale: U.S. government and government sponsored entities $ 720 $ 26 $ - $ - $ 720 $ 26 Obligations of states, municipalities and political subdivisions 5,814 221 231 33 6,045 254 Non-U.S. governments 3,865 162 489 94 4,354 256 Corporate debt 28,184 1,013 6,080 726 34,264 1,739 RMBS 8,794 252 4,045 226 12,839 478 CMBS 4,469 152 479 40 4,948 192 CDO/ABS 5,362 102 1,961 78 7,323 180 Total bonds available for sale 57,208 1,928 13,285 1,197 70,493 3,125 Equity securities available for sale: Common stock 125 12 - - 125 12 Mutual funds 64 3 - - 64 3 Total equity securities available for sale 189 15 - - 189 15 Total $ 57,397 $ 1,943 $ 13,285 $ 1,197 $ 70,682 $ 3,140 December 31, 2015 Bonds available for sale: U.S. government and government sponsored entities $ 483 $ 9 $ 1 $ - $ 484 $ 9 Obligations of states, municipalities and political subdivisions 2,382 87 268 17 2,650 104 Non-U.S. governments 4,327 203 832 159 5,159 362 Corporate debt 41,317 2,514 5,428 1,473 46,745 3,987 RMBS 7,215 133 4,318 278 11,533 411 CMBS 4,138 108 573 21 4,711 129 CDO/ABS 7,064 104 2,175 144 9,239 248 Total bonds available for sale 66,926 3,158 13,595 2,092 80,521 5,250 Equity securities available for sale: Common stock 91 16 - - 91 16 Mutual funds 200 8 - - 200 8 Total equity securities available for sale 291 24 - - 291 24 Total $ 67,217 $ 3,182 $ 13,595 $ 2,092 $ 80,812 $ 5,274 At December 31, 2016 , we held 11,225 and 113 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 1,795 individual fixed maturity securities were in a continuous unrealized loss position for 12 months or more. We did not recognize the unrealized losses in earnings on these fixed maturity securities at December 31, 2016 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 analyses 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. Contrac tual 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 December 31, 2016 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 $ 7,796 $ 7,994 $ 604 $ 581 Due after one year through five years 49,200 51,958 6,002 5,841 Due after five years through ten years 43,308 44,226 16,045 15,332 Due after ten years 66,257 69,301 25,007 23,629 Mortgage-backed, asset-backed and collateralized 65,680 68,058 25,960 25,110 Total $ 232,241 $ 241,537 $ 73,618 $ 70,493 December 31, 2015 Due in one year or less $ 9,176 $ 9,277 $ 1,122 $ 1,103 Due after one year through five years 47,230 49,196 9,847 9,494 Due after five years through ten years 54,120 54,459 22,296 20,686 Due after ten years 68,440 70,418 26,235 23,755 Mortgage-backed, asset-backed and collateralized 62,002 64,895 26,271 25,483 Total $ 240,968 $ 248,245 $ 85,771 $ 80,521 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, 2016 2015 2014 Gross Gross Gross Gross Gross Gross Realized Realized Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Gains Losses Fixed maturity securities $ 801 $ 800 $ 517 $ 423 $ 703 $ 118 Equity securities 1,072 15 1,060 28 135 24 Total $ 1,873 $ 815 $ 1,577 $ 451 $ 838 $ 142 For the years ended December 31, 2016 , 2015 and 2014 , the aggregate fair value of available for sale securities sold was $ 30.2 billion, $ 28.7 billion and $ 25.3 billion, which resulted in net realized capital gains of $ 1.1 billion, $ 1.1 billion and $ 0.7 billion, respectively. Other Securities Measured at Fair Value The following table presents the fair value of ot her securities measured at fair value based on our election of the fair value option: December 31, 2016 December 31, 2015 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 2,939 20 % $ 3,369 19 % Obligations of states, municipalities and political subdivisions - - 75 - Non-U.S. governments 51 - 50 - Corporate debt 1,772 12 2,035 12 Mortgage-backed, asset-backed and collateralized : RMBS 2,025 14 2,230 13 CMBS 603 4 750 4 CDO/ABS and other collateralized * 6,608 47 8,273 47 Total mortgage-backed, asset-backed and collateralized 9,236 65 11,253 64 Total fixed maturity securities 13,998 97 16,782 95 Equity securities 482 3 921 5 Total $ 14,480 100 % $ 17,703 100 % * Inclu des $ 421 m illion and $ 712 m illion of U.S. Government agency backed ABS at December 31, 2016 and 2015 , respectively. Other Invested Assets The following table summarizes the carrying amounts of other invested assets: December 31, (in millions) 2016 2015 Alternative investments (a) (b) $ 13,379 $ 18,150 Investment real estate (c) 6,900 6,579 Aircraft asset investments (d) 321 477 Investments in life settlements 2,516 3,606 All other investments 1,422 982 Total $ 24,538 $ 29,794 (a) At December 31, 2016 , includes hedge funds of $ 7.2 billion, private equity funds of $ 5.5 billion, and affordable housing partnerships of $ 625 million. At December 31, 2015 , includes hedge funds of $ 10.9 billion, private equity funds of $ 6.5 billion, and affordable housing partnerships of $ 701 million. (b) Approximately 72 percent and 15 percent of our hedge fund portfolio is available for redemption in 2017 and 2018, respectively, an additional 7 percent will be available between 2019 and 2024. (c) Net of accumulated depreciation of $ 451 million and $ 668 million in 2016 and 2015 , respectively. (d) Consists of investments in aircraft equipment held in a consolidated trust. Other Invested Assets Carried at Fair Value Certain hedge funds, private equity funds, 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 Other Operations, for which such changes are reported in Other income. Other investments in hedge funds, private equity funds 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 Accumulated other comprehensive income on such investments was $ 32 million and $ 33 million at December 31, 2016 and 2015 , 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 Other Operations, 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 fai r value option has been elected: Years Ended December 31, (in millions) 2016 2015 2014 Operating results: Total revenues $ 9,512 $ 22,055 $ 29,579 Total expenses (7,361) (3,898) (7,828) Net income $ 2,151 $ 18,157 $ 21,751 At December 31, (in millions) 2016 2015 Balance sheet: Total assets $ 158,306 $ 201,007 Total liabilities $ (37,336) $ (33,424) The following t able presents the carrying amount and ownership percentage of equity method investments at December 31, 2016 and 2015 : 2016 2015 Carrying Ownership Carrying Ownership (in millions, except percentages) Value Percentage Value Percentage Equity method investments $ 10,756 Various $ 14,259 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 investments in aircraft equipment held in a consolidated trust. These investments are reported at cost, less depreciation and are s ubject to impairment review, as discussed below. Investments in Life Settlement s 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 tran saction 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 th e 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 2016 , 2015 and 2014 , income recognized on investments in life settlements was $ 453 million, $ 332 million and $ 407 million, respectively, and is included in Net investment income in the Consolidated Statements of Income. The following table presents further information regard ing investments in life settlements: December 31, 2016 Number of Carrying Face Value (dollars in millions) Contracts Value (Death Benefits) Remaining Life Expectancy of Insureds: 0 – 1 year 1 $ - $ - 1 – 2 years 5 5 10 2 – 3 years 16 6 14 3 – 4 years 43 43 93 4 – 5 years 148 171 404 Thereafter 3,235 2,291 9,266 Total 3,448 $ 2,516 $ 9,787 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, 2016 , management’s best estimate of the life insurance premiums required to keep the investments in li fe settlements in force, paya ble in the 12 months ending December 31, 2017 and the four succeeding years ending December 31, 2021 are $ 390 million, $ 402 million, $ 414 million, $ 422 million and $ 429 million, respectively. N et 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 with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable. Dividend income from common and preferred stock s . 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 reco rded in income upon the death of the insured. The following table presents the components of Net i nvestment i ncome: Years Ended December 31, (in millions) 2016 2015 2014 Fixed maturity securities, including short-term investments $ 11,645 $ 11,332 $ 12,322 Equity securities (5) 99 221 Interest on mortgage and other loans 1,526 1,417 1,272 Alternative investments * 693 1,120 2,070 Real estate 150 181 110 Other investments 509 432 601 Total investment income 14,518 14,581 16,596 Investment expenses 453 528 517 Net investment income $ 14,065 $ 14,053 $ 16,079 * Beginning in the first quarter of 2016, the presentation of income on alternative investments has been refined to include only income from hedge funds, private equity funds and affordable housing partnerships. Prior period disclosures have been reclassified to conform to this presentation. Hedge funds for which we elected the fair value option are recorded as of the balance sheet date. Other hedge funds are generally reported on a one-month lag, while private equity funds are generally reported o n a one-quarter lag. 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 or full redempti ons of available for sale fixed maturity securities , available for sale equity securities , real estate and other alternative investments . Reductions to the amortized cost basis of available for sale fixed maturity securities , available for sale equity secu rities 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 derivatives at AIGFP and (2) those instruments that are designated as h edging 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 real ized capital gains (losses) : Years Ended December 31, (in millions) 2016 2015 2014 Sales of fixed maturity securities $ 1 $ 94 $ 585 Sales of equity securities (a) 1,057 1,032 111 Other-than-temporary impairments: Severity (15) (13) (3) Change in intent (46) (233) (40) Foreign currency declines (18) (57) (19) Issuer-specific credit events (433) (348) (169) Adverse projected cash flows (47) (20) (16) Provision for loan losses 10 (58) (1) Foreign exchange transactions (1,226) 416 598 Derivatives and hedge accounting (944) 341 (177) Impairments on investments in life settlements (397) (540) (201) Other (b) 114 162 71 Net realized capital gains (losses) $ (1,944) $ 776 $ 739 (a) In 2016 and 2015 includes realized gains on the sale of a portion of our holdings in People’s Insurance Company (Group) of China Limited and PICC Property & Casualty Company Limited (collectively, our PICC Investment) . ( b) In 2016 , primarily includes $ 107 million of realized gains due to a purchase price adjustment on the sale of Class B shares of Prudential Financial, Inc. and losses of $ 253 million from the sale of a portion of our Life Settlements portfolio. In 2015 , primarily includes $ 357 million of realized gains due to the sale of common shares of SpringLeaf Holdings (now known as OneMain Holdings, Inc.) , $ 428 million of realized gains due to the sale of Class B shares of Prudential Financial, Inc. and $ 463 million of realized losses due to the sale of ordinary shares of AerCap . Change in Unrealized Appreciation (Depreciation) of Investments The following table presents the increase (decre ase) in unrealized appreciation (depreciation) of our available for sale securities and other investme nts : Years Ended December 31, (in millions) 2016 2015 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ 2,019 $ (9,275) Equity securities (1,155) (929) Other investments (259) (803) Total increase (decrease) in unrealized appreciation (depreciation) of investments * $ 605 $ (11,007) * 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 fa ir 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 writte n 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 historic al 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 m anagement 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 res tructurings, 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 impairm ents. 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 a vailable for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and th e expected undiscounted recoverable value over the remaining expected holding perio d 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) 2016 2015 2014 Balance, beginning of year $ 1,747 $ 2,659 $ 3,872 Increases due to: Credit impairments on new securities subject to impairment losses 204 111 49 Additional credit impairments on previously impaired securities 212 109 85 Reductions due to: Credit impaired securities fully disposed of for which there was no prior intent or requirement to sell (296) (399) (613) Credit impaired securities for which there is a current intent or anticipated requirement to sell - 2 - Accretion on securities previously impaired due to credit * (767) (735) (725) Divested businesses (2) - - Other - - (9) Balance, end of year $ 1,098 $ 1,747 $ 2,659 * 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 la ws 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-te mporarily 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 be en 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 a s 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 investment s 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 conside red impaired if the undiscounted cash flows resulting from the expected proceeds would not be sufficient to recover our estimated future carrying amount, which is the current carrying amount for the investment in life settlements plus anticipated undiscoun ted 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 mortality assumptio ns 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. Ou r mortality assumptions are based on an industry table as supplemented with proprietary data on the older age mortality of U.S. insured lives. M ortality 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 an d 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. Wh en 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 purchas e certain RMBS securities that ha ve experienced deterioration in credit quality since their issuance. We determine whether it is probable at acquisition that we w ill not collect all contractually required payments for these PCI securities, includ ing both principal and interest. At acquisition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security i s determined based on our best estimate using key a ssumptions, 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 accretabl e yield, which is accreted into N et investment income over their remaining lives on a n effective yield basis. Additionally, the difference between the contractually required payments on the PCI securities and the undiscounted expected future cash flows repr esents 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 |
LENDING ACTIVITIES
LENDING ACTIVITIES | 12 Months Ended |
Dec. 31, 2016 | |
LENDING ACTIVITIES | |
LENDING ACTIVITIES | 7 . Lending Activities Mortgage and other loans receivable include commercial mortgages , residential mortgages , life insurance policy loans, commercial loans, and other loans and notes receivable. Commercial mortgages , residential mortgages , commercial loans, and other loans and notes receivable are carried at unpaid pr incipal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loan s 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. Premiums and discounts on purchased residential mortgages are also amortized to income as an adjustment to earnings using the interest method. Life insurance policy loa ns are carried at unpaid principal balances. 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 p olicy. The following table presents the composition of Mortgage and other loans receivable, net: December 31, December 31, (in millions) 2016 2015 Commercial mortgages * $ 25,042 $ 22,067 Residential mortgages 3,828 2,758 Life insurance policy loans 2,367 2,597 Commercial loans, other loans and notes receivable 2,300 2,451 Total mortgage and other loans receivable 33,537 29,873 Allowance for credit losses (297) (308) Mortgage and other loans receivable, net $ 33,240 $ 29,565 * Commercial mortgages primarily represent loans for o ffice s , apartments and retail , with exposures in New York and California representing the largest geographic concentrations ( aggregating approximately 24 percent and 12 percent, respectively, at December 31, 2016 , and 22 percent and 12 percent, respectively, at December 31, 2015 ) . Nonperforming loans are generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming mortgages were not significant for all periods presented. Credit Quality of Commercial Mortgages The following table presents debt service coverage ratios and loan-to-value ratios for commercial mortgages: Debt Service Coverage Ratios (a) (in millions) >1.20X 1.00X - 1.20X <1.00X Total December 31, 2016 Loan-to-Value Ratios (b) Less than 65% $ 13,998 $ 1,694 $ 232 $ 15,924 65% to 75% 5,946 575 62 6,583 76% to 80% 1,246 174 47 1,467 Greater than 80% 471 392 205 1,068 Total commercial mortgages $ 21,661 $ 2,835 $ 546 $ 25,042 December 31, 2015 Loan-to-Value Ratios (b) Less than 65% $ 10,283 $ 1,704 $ 150 $ 12,137 65% to 75% 6,361 611 45 7,017 76% to 80% 1,370 169 81 1,620 Greater than 80% 646 226 421 1,293 Total commercial mortgages $ 18,660 $ 2,710 $ 697 $ 22,067 (a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. (b) The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. The following table presents the credit quality performance indicators for commercial mortgages: Number Percent December 31, 2016 of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total (c) Total $ Credit Quality Performance Indicator: In good standing 784 $ 6,005 $ 7,830 $ 5,179 $ 1,898 $ 2,373 $ 1,589 $ 24,874 99 % Restructured (a) 4 - 134 18 - 16 - 168 1 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure - - - - - - - - - Total (b) 788 $ 6,005 $ 7,964 $ 5,197 $ 1,898 $ 2,389 $ 1,589 $ 25,042 100 % Allowance for credit losses: Specific - 3 1 6 1 - 11 - % General 35 72 41 7 13 15 183 1 Total allowance for credit losses $ 35 $ 75 $ 42 $ 13 $ 14 $ 15 $ 194 1 % December 31, 2015 (dollars in millions) Credit Quality Performance Indicator: In good standing 830 $ 3,916 $ 7,484 $ 4,809 $ 1,902 $ 2,082 $ 1,435 $ 21,628 98 % Restructured (a) 9 - 156 25 6 16 6 209 1 90 days or less delinquent 1 - - 4 - - - 4 - >90 days delinquent or in process of foreclosure 9 3 205 - 6 - 12 226 1 Total (b) 849 $ 3,919 $ 7,845 $ 4,838 $ 1,914 $ 2,098 $ 1,453 $ 22,067 100 % Allowance for credit losses: Specific $ - $ 16 $ 1 $ 6 $ 1 $ - $ 24 - % General 35 47 29 8 15 13 147 1 Total allowance for credit losses $ 35 $ 63 $ 30 $ 14 $ 16 $ 13 $ 171 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 credit losses . (c) 100 percent of the commercial mortgages held at such respective dates were current as to payments of principal and interest. There were no significant amounts of nonperforming commercial mortgages (defined as those loans where payment of contractual principal or interest is more than 90 days past due) during any of the periods presented. M ethodology Used to Estimate the Allowance for Credit Losses Mortgage and other loans receivable are considered impaired when collection of all amounts due under contractual terms is n ot 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. A n 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 statistical mode ls primarily driven by past due status, debt servic e coverage, loan-to-value ratio, property type and location, loan term, profile of the borrower and of the major property tenants, and loan seasoning. When all or a portion of a loan is deemed uncollectib le, the uncollectible portion of the ca rrying amount of the loan is charged off against the allowance. Interest income is not accrued when payment of contractual principal and interest is not expected. Any cash received on impaired loans is generally rec orded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest is repaid or when a portion of the delinquent contractual payments are made and the ongoing required contractual payments have been made for an appropriate period. A significant majority of commercial mortgage s in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-reco urse 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 credit losses on Mort gage and other loans receivable: 2016 2015 2014 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 $ 171 $ 137 $ 308 $ 159 $ 112 $ 271 $ 201 $ 111 $ 312 Loans charged off (13) (2) (15) (23) (6) (29) (29) (39) (68) Recoveries of loans previously charged off 11 - 11 4 1 5 18 16 34 Net charge-offs (2) (2) (4) (19) (5) (24) (11) (23) (34) Provision for loan losses 25 (32) (7) 31 27 58 (31) 23 (8) Other - - - - 3 3 - 1 1 Allowance, end of year $ 194 * $ 103 $ 297 $ 171 * $ 137 $ 308 $ 159 * $ 112 $ 271 * Of the total allowance at the end of the year , $ 11 million, $ 24 million and $55 million relates to individually assessed credit losses on $ 280 million , $ 507 million and $192 million of commercial mortgages as of December 31, 2016 , 2015 and 2014 , respectively. Troubled Debt Restructurings We modify loans to optimize their returns and improve their collect ability, 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 (T DR). 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 w ould 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. Loans that had bee n modified in troubled debt restructurings during the twelve-month period ended December 31, 2016 h ave been fully paid off. For the twelve-month period ended December 31, 2015 , loans with a carrying value of $ 36 million, were modified in troubled debt restructurings . |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2016 | |
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 b e 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 IBN R. 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 fo r 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 doubtfu l 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 doubtfu l accounts on reinsurance assets was $ 207 million and $ 272 million at December 31, 2016 and 2015 , respectively. Changes in the allowance for doubtful accounts on reinsurance asse ts 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, 2016 2015 As Net of As Net of (in millions) Reported Reinsurance Reported Reinsurance Liability for unpaid losses and loss adjustment expenses $ (77,077) $ (61,545) $ (74,942) $ (60,603) Future policy benefits for life and accident and health insurance contracts (42,204) (41,140) (43,585) (42,506) Reserve for unearned premiums (19,634) (16,280) (21,318) (18,380) Reinsurance assets (a) 19,950 18,356 Short-Duration Reinsurance Short-duration reinsurance is effected 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 o ver 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 premium s. 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 t he 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: (a ) Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses. Years Ended December 31, (in millions) 2016 2015 2014 Premiums written: Direct $ 33,970 $ 37,698 $ 39,375 Assumed 2,824 2,972 3,399 Ceded (7,561) (7,604) (8,318) Net $ 29,233 $ 33,066 $ 34,456 Premiums earned: Direct $ 34,869 $ 37,105 $ 38,707 Assumed 2,962 2,659 3,258 Ceded (7,284) (7,593) (8,140) Net $ 30,547 $ 32,171 $ 33,825 For the years ended December 31, 2016 , 2015 and 2014 , reinsurance recoveries, which reduced losses and loss adjustment expenses incurred, amounted to $ 2.1 billion, $ 4.1 billion and $ 2.6 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 m anner 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 life insurance and annuity operations: Years Ended December 31, (in millions) 2016 2015 2014 Gross premiums $ 4,732 $ 5,240 $ 4,070 Ceded premiums (789) (756) (661) Net $ 3,943 $ 4,484 $ 3,409 Long-duration reinsurance recoveries, which reduced Policyholder benefits and losses incurred, were approximately $ 1.0 billion for both of the years ended December 31, 2016 and 2015 , and $ 731 million for the year ended December 31, 2014 . The following table presents long-duration insurance in-force ceded to other insurance companies: At December 31, (in millions) 2016 2015 2014 Long-duration insurance in force ceded $ 174,363 $ 177,025 $ 180,178 Long-duration insurance in-force assumed represented 0.03 percent of gross long-duration insurance in-force at December 31, 2016 , and 0.04 percent at both December 31, 2015 and 2014 ; and premiums assumed represented 3 percent, 0.1 percent and 0.5 percent of gross premiums for the years ended December 31, 2016 , 2015 and 2014 , respectively . The U.S. Life Insurance Companies manage the capital impact of their statutory reserve requirements, including those resulting from the NAIC Model Regulation “Valuation of Life Insurance Policies” (Regu lation XXX) and NAIC Actuarial Guideline 38 (Guideline AXXX), through unaffiliated and affiliated reinsurance transactions. Effective July 1, 2016, one of the U.S. Life Insurance Companies entered into an agreement to cede approximately $5 billion of statu tory reserves for certain whole life and universal life policies to an unaffiliated reinsurer. Effective December 31, 2016, the same life insurance subsidiary recaptured term and universal life reserves subject to Regulation XXX and Guideline AXXX, previou sly ceded to an affiliate, and ceded approximately $14 billion of such statutory reserves to an unaffiliated reinsurer under an amendment to the July 1, 2016 agreement. Under GAAP, these unaffiliated reinsurance transactions use deposit accounting with a r einsurance risk charge recorded in income, whereas such affiliated transactions are eliminated in consolidation. Un der one affiliated reinsurance arrangement, one of the U.S. Life Insurance Companies obtains letters of credit to support statutory recogniti on of the ceded reinsurance. As of December 31, 2016 , t his subsidiary had two bilateral letters of credit totaling $ 450 million , which were issued on February 7, 2014 and expire on February 7, 2020. The letters of cr edit are subject to reimbursement by AIG Parent in the event of a drawdown. See Note 19 for additional information on the use of affiliated reinsurance for Regulation XXX and Guideline AXXX reserves. Reinsurance Security Our third-party reinsuran ce 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 assume d 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. We believ e that no exposure to a single reinsurer represents an inappropriate concentration of credit risk to AIG. Gross reinsurance assets with our three largest reinsurers aggregate to approximately $ 8.2 billion and $ 6.5 billion at December 31, 2016 and 2015 , respectively, of which approximately $ 4.4 billion and $ 3.7 billion at December 31, 2016 and 2015 , respectively, was not secured by collateral. |
DEFERRED POLICY ACQUISITION COS
DEFERRED POLICY ACQUISITION COSTS | 12 Months Ended |
Dec. 31, 2016 | |
DEFERRED POLICY ACQUISITION COSTS | |
DEFERRED POLICY ACQUISITION COSTS | 9. Deferred Policy Acquisition Costs Deferred p olicy 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. S uch 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 analy zed 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 employe e 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 c ontract 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 recov erability 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 impa irment 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 c osts. 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 l ife 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 is sued 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 deviatio n 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 amount of future policy benefit liabilities, net of DAC, and what 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, servicing and measuring the profitability of 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, inv estment - 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 in vestment income and spreads , net r ealized capital 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 significant ly, DAC is recalculated using the new assumptions , and a ny 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 i n 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 pr ofitability 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 assumpti on 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” meth odology 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 -ye ar reversion to the mean period falling below a certain rate (floor) or above a certain rate (cap) for a sustain ed 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 mat urity 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 state d 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 recognit ion 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 Replace ments 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 re lated 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 ar e charged or credited to income, and any new deferrable costs assoc iated 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 Sheet s with DAC. This value is based on the present value of future pre-tax profits dis counted 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 purch ase. 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 t able presents a rollforward of DAC and VOBA: Years Ended December 31, (in millions) 2016 2015 2014 Balance, beginning of year $ 11,115 $ 9,828 $ 9,436 Dispositions (110) - - Acquisition costs deferred 5,216 5,825 5,919 Amortization expense (4,521) (5,236) (5,330) Change in net unrealized gains (losses) on securities (259) 848 (360) Other, including foreign exchange 72 (150) 163 Reclassified to Assets held for sale (471) - - Balance, end of year * $ 11,042 $ 11,115 $ 9,828 Supplemental Information: VOBA amortization expense included in DAC amortization 40 64 17 VOBA, end of year included in DAC balance 393 453 510 * Net of reductions in DAC of $ 842 m illion, $ 583 million , and $ 1.4 billion at December 31, 2016 , 2015 and 2014 , 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, 2016 expected to be amortized in 2017 through 2021 by year is: 8.6 percent, 7.9 percent, 7.2 percent, 6.8 percent and 6.2 percent, respectively, with 63.3 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, whi ch 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, 2016 | |
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 co nsolidate 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. The primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that m ost 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 depend s 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 (c) Securitization Vehicles Structured Investment Vehicle Affordable Housing Partnerships Other Total December 31, 2016 Assets: Bonds available for sale $ - $ 10,233 $ - $ - $ - $ 10,233 Other bond securities - 4,858 266 - 5 5,129 Mortgage and other loans receivable 1 1,442 - - 104 1,547 Other invested assets 1,052 321 - 2,821 28 4,222 Other (a) 365 1,104 50 384 92 1,995 Total assets (b) $ 1,418 $ 17,958 $ 316 $ 3,205 $ 229 $ 23,126 Liabilities: Long-term debt $ 444 $ 771 $ 56 $ 1,696 $ 6 $ 2,973 Other (d) 224 203 1 211 38 677 Total liabilities $ 668 $ 974 $ 57 $ 1,907 $ 44 $ 3,650 December 31, 2015 Assets: Bonds available for sale $ - $ 10,309 $ - $ - $ 15 $ 10,324 Other bond securities - 5,756 387 - 24 6,167 Mortgage and other loans receivable 1 1,960 - - 132 2,093 Other invested assets 489 477 - 2,608 24 3,598 Other (a) 29 1,349 94 293 159 1,924 Total assets (b) $ 519 $ 19,851 $ 481 $ 2,901 $ 354 $ 24,106 Liabilities: Long-term debt $ - $ 1,025 $ 53 $ 1,513 $ 6 $ 2,597 Other (d) 34 236 1 214 71 556 Total liabilities $ 34 $ 1,261 $ 54 $ 1,727 $ 77 $ 3,153 (a) C omprised primarily of Short-term investments and Other assets at December 31, 2016 and 2015 . ( b ) The assets of each VIE can be used only to settle specific obligations of that VIE. ( c ) At December 31 , 2016 and 2015 , off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $ 106 million and $ 131 million, respectively. ( d ) Comprised primarily of Other liabilities and Derivative liabilities, at fair value , at December 31, 2016 and 2015 . 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 no t 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 t o loss associated with these VIEs: Maximum Exposure to Loss Total VIE On-Balance Off-Balance (in millions) Assets Sheet (a) Sheet Total December 31, 2016 Real estate and investment entities (d) $ 409,087 $ 11,015 $ 2,115 $ 13,130 Affordable housing partnerships 4,709 785 - 785 Other 2,869 314 1,045 (b) 1,359 Total (c) $ 416,665 $ 12,114 $ 3,160 $ 15,274 December 31, 2015 Real estate and investment entities (d) $ 21,951 $ 3,072 $ 398 $ 3,470 Affordable housing partnerships 5,255 774 - 774 Other 1,110 215 1,000 (b) 1,215 Total $ 28,316 $ 4,061 $ 1,398 $ 5,459 (a) At December 31, 2016 and 2015 , $ 11.7 billion and $ 3.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (b) These amounts represent our estimate of the maximum exposure to loss under certain insurance policies issued to VIEs if a hypothetical loss occurred to the extent of the full amount of the insured value. Our insurance policies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet. (c) As discussed in Note 2 , on January 1, 2016, we adopted accounting guidance that resulted in an increase in the number of our investment entities classified as VIEs. (d) Comprised primarily of hedge funds and private equity funds. Real Estate and Investment Entities T hrough our insurance operations and AIG Global Real Estate, we are an investor in various real estate investment entities , some of which are VIE s . Thes e 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 invol vement varies from being a passive equity investor or finance provider to actively managing the activities of the VIE s . Our insurance operations participate as passive investors in the equity issued by certain third - party - managed hedge and private equity f unds 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 W e created certain VIEs that hold investments, pri marily 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 tha t 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 in terests issued to third-parties are reported as Long-term debt. Total assets of consolidated s ecuritization vehicles are $ 18.0 billion , of which $ 17.3 billion represents amounts owed to Parent or its subsidiaries. Structured Investment Vehicle We sponsor Nightingale Finance Ltd . , a structured investment vehicle (SIV), whic h is a VIE. Nightingale Finance Ltd. primarily 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 economi c losses that could potentially be significant to the SIV. We are the primary beneficiary and consolidate the SIV. A ffordable Housing Partnerships SunAmerica Affordable Housing Partners, Inc. (SAAHP) organize d and invest ed in limited partnerships that deve lop and operate affordable housing qualifying for federal , state, and historic 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 g eneral partners of which are mostly unaffiliated third - party developers. We account for our investments in operating partnerships using the equity method of accounting, unless they ar e required to be consolidated. We consolidate an operating partnership if the general partner is an affiliated entity or we otherwise have the power to direct activities that most significantly impact the entities’ economic performance . The pre- tax income of SAAHP is reported as a component of the Consumer Insurance segment. RM BS, 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 i ssued 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. Our maximum exposure in these types of structures is limited to our investment in securities is sued 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 table s ; however, the fair values of our investments in these structures are reported in Notes 5 and 6 herein. |
DERIVATIVES AND HEDGE ACCOUNTIN
DERIVATIVES AND HEDGE ACCOUNTING | 12 Months Ended |
Dec. 31, 2016 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
DERIVATIVES AND HEDGE ACCOUNTING | 11. Derivatives a nd 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 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 mitig ate 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 investm ent operations, which may include, among other things, CDSs and purchases of investments with embedded derivatives, such as equity -linked notes and convertible bonds . Interest rate, currency, equity and commodity swa ps, credit contracts , 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. Aggregate asset or liability positions are netted on the Consolidat ed Balance Sheet s 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 arrangem ents 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 derivativ e asset. D erivatives, with the exception of embedded derivatives, are reported at fair value in the Consolidated Balance Sheets in Other assets and Other liabiliti es . Embedded derivatives are generally presented with the host contract in the Consolidated B alance Sheets . 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 f or that instrument. See Notes 5 and 14 herein for additional information on embedded derivatives. The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Consolida ted Balance Sheets : December 31, 2016 December 31, 2015 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Notional Fair Notional Fair Notional Fair Notional Fair (in millions) Amount Value Amount Value Amount Value Amount Value Derivatives designated as hedging instruments: (a) Interest rate contracts $ 175 $ - $ 782 $ 11 $ 301 $ 1 $ 725 $ 2 Foreign exchange contracts 3,527 385 2,602 184 2,903 207 914 56 Equity contracts - - 113 7 - - 121 23 Derivatives not designated as hedging instruments: (a) Interest rate contracts 51,030 2,328 44,211 3,066 45,846 3,161 65,733 2,197 Foreign exchange contracts 9,468 935 7,674 1,185 9,472 559 8,900 1,148 Equity contracts 14,060 305 8,633 12 6,656 177 5,028 45 Commodity contracts - - - - - - - - Credit contracts (b) 4 2 861 331 4 3 1,289 508 Other contracts (c) 37,633 22 62 6 37,586 23 203 69 Total derivatives, gross $ 115,897 $ 3,977 $ 64,938 $ 4,802 $ 102,768 $ 4,131 $ 82,913 $ 4,048 Counterparty netting (d) (1,265) (1,265) (1,268) (1,268) Cash collateral (e) (903) (1,521) (1,554) (760) Total derivatives on consolidated balance sheets (f) $ 1,809 $ 2,016 $ 1,309 $ 2,020 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b ) As of December 31, 2016 and 2015 , included CDSs on super senior multi-sector CDOs with a net notional amount of $ 0.8 billion and $ 1.1 billion (fair value liability of $ 308 million and $ 483 million), respectively. The expected weighted average maturity as of December 31, 2016 is six years. Because of long-term maturities of the CDSs in the 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 portfolio. As of December 31, 2016 and 2015 , there were no super senior corporate debt/CLOs remaining. (c) Consists primarily of stable value wraps and contracts with multiple underlying exposures . (d) Represents netting of derivative exposures covered by a qualifying master netting agreement. (e) Represents cash collateral posted and received that is eligible for netting. (f) Freestanding derivatives only, excludes Embedded derivatives. Derivative instrument assets and liabilities are recorded in Other Assets and Liabilities, respectively. Fair value of assets related to bifurcated Embedded derivatives was zero at both December 31, 2016 and December 31, 2015 . Fair val ue of liabilities related to bifurcated Embedded derivatives was $ 3.1 billion and $ 2.3 billion, respectively, at December 31, 2016 and December 31, 2015 . A bifurcated Embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in variable annuity products, which include equity and interest rate components. 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) Master Agreements. Many of the ISDA Master 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 th at enable collateral to be obtained from a counterparty on an upfront or contingent basis. We minimize the risk that counterparties might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and generally requiring 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 t he 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 t he 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. Colla teral posted by us to third parties for derivative transactions was $ 4.5 billion and $ 3.0 billion at December 31, 2016 and 2015 , respectively. In the case of collateral posted under der ivative 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 $ 1.5 b illion and $ 1.6 billion at December 31, 2016 and 2015 , respectively. In the case of collateral provided to us under derivative transactions that are not subject to clearing, we generally can repledge or resell collateral. Offsettin g 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 o ur derivative counterparty. An ISDA Master Agreement is an agreement governing multiple derivative transactions between two counterparties. The ISDA Master Agreement generally provides for the net settlement of all, or a specified group, of these derivativ e transactions, as well as transferred collateral, through a single payment, and in a single currency, as applicable. The net settlement provisions apply in the event of a default on, or affecting any, one derivative transaction or a termination event affe cting all, or a specified group of, derivative transactions governed by the ISDA Master Agreement . H edge Accounting We designated certain derivatives entered into 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 and cross currency swaps 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 also designated certain interest rate swaps entered into with third parties as fair value hedges of fi xed rate GICs attributable to changes in benchmark interest rates . 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. For net investment hedge relationships where issued debt is used as a hedging instrument, we assess the hedge effectiveness and measure the amount of ineffectiveness based on changes in spot rates. For net investment hedge relationships that use derivatives as hedging instruments, we assess hedge effectiveness and measure hedge ineffectiveness using changes in forward rates. For the years ended December 31, 2016 , 2015 , and 2014 we recognized gain s of $ 123 million , $ 90 million and $ 156 million, respectively, included in Change in foreign currency translation adjustment 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 earni ngs 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, 2016 Interest rate contracts : Realized capital gains/(losses) $ (7) $ 1 $ 1 $ - $ (7) Interest credited to policyholder account balances - - - - - Other income - 10 - - 10 Gain/(Loss) on extinguishment of debt - - - - - Foreign exchange contracts : Realized capital gains/(losses) 294 (335) - (41) - Interest credited to policyholder account balances - - - - - Other income - 24 - - 24 Gain/(Loss) on extinguishment of debt - - - - - Equity contracts : Realized capital gains/(losses) 10 (11) - (1) - Year ended December 31, 2015 Interest rate contracts : Realized capital gains $ - $ 1 $ 1 $ - $ - Interest credited to policyholder account balances - - - - - Other income - 9 - - 9 Gain/(Loss) on extinguishment of debt - 14 - - 14 Foreign exchange contracts : Realized capital gains 202 (167) - 32 3 Interest credited to policyholder account balances - (1) - - (1) Other income - 17 - - 17 Gain/(Loss) on extinguishment of debt - 17 - - 17 Equity contracts : Realized capital gains/(losses) (45) 45 - - - 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) - (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 h edge relationship. Derivatives Not Designated as Hedging Instruments The following table presents the effect of derivative instruments not designated as hedging instruments in the Consolidated Statements of Income: Gains (Losses) Years Ended December 31, Recognized in Earnings (in millions) 2016 2015 2014 By Derivative Type: Interest rate contracts $ (229) $ 339 $ 851 Foreign exchange contracts 293 416 309 Equity contracts (902) (182) (274) Commodity contracts - (1) (1) Credit contracts 81 186 263 Other contracts 80 69 192 Embedded derivatives (48) 49 (841) Total $ (725) $ 876 $ 499 By Classification: Policy fees $ 80 $ 78 $ - Net investment income 26 26 102 Net realized capital gains (losses) (895) 365 (219) Other income 63 401 599 Policyholder benefits and claims incurred 1 6 17 Total $ (725) $ 876 $ 499 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, 2016 and 2015 , was approximately $ 3.0 billion and $ 2.0 billion, respectively. The aggregate fair value of assets posted as collateral under these contracts at December 31, 2016 and 2015 , was approximately $ 4.0 billion and $ 2.1 billion, respectively . We estimate that at December 31, 2016 , based on our outstanding financial derivative transactions, a downgrade of our long-term senior debt ratings to B BB+, BBB or BBB– by Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc., and/or a downgrade to Baa2 or Baa3 by Moody’s Investors’ Service, Inc. would permit counterparties to make additional collateral calls and permit certain counter parties to elect early termination of contracts, resulting in corresponding collateral postings and termination payments in the total amount of up to approximately $ 106 million. Additional collateral postings upon downgrade are estimated ba sed on the factors in the individual collateral posting provisions of the CSA with each counterparty and current exposure as of December 31, 2016 . Factors considered in estimating the termination payments upon downgrade include current mark et conditions and the terms of the respective CSA provisions. Our estimates are also based on the assumption that counterparties will terminate based on their net exposure to us. The actual termination payments could 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 Securitie s 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, C MBS, 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 pa yments 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 i ncome and Other income. Our investments in these hybrid securities are reported as Other bond securities in the Consolidated Balance Sheet s . The fair value s of these hybrid securities were $ 4.8 billion and $ 5.7 billion at December 31, 2016 and 2015 , respectively . These securities ha ve par amounts of $ 10.1 billion and $ 11.2 billion at December 31, 2016 and 2015 , respectively, and have remainin g stated maturity dates tha t extend to 2052 . |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2016 | |
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. At December 31, 2016, as a result of the 2016 segment changes, goodwill is reported within our Commercial Insurance business – Liability and Financial Lines and our Property and Special Risks operati ng segments, our Consumer Insurance business – Life Insurance and Personal Insurance operating segments and our Legacy Portfolio operating segment. When a business is transferred from one reporting unit to another, as occurred as part of the 2016 segment c hanges, goodwill from the original operating segment is allocated among reporting units based on the fair value of business transferred, relative to business retained by a reporting unit. As such, at December 31, 201 6, $132 million of goodwill was re-alloc ated from the original reporting units to Le gacy Property and Casualty Run-O ff Insurance Lines and Legacy Life Insurance Run- O ff Lines reporting units in the amount of $75 million and $57 million, respectively. 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 an operating segment 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 an operating segment 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 operating segment and compare the estimated fai r value with the carrying amount of the operating segment, including allocated goodwill. The estimate of an operating segment’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 an operating segment to be used in the impairment test. If the estimated fair value of an operating segment exceeds its carrying amount, goodwill is not impaired. If the carrying value of an operating segment exceeds its esti mated fair value, goodwill associated with that operating segment 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 valu e of the goodwill is measured as the excess of the fair value of the operating segment over the amounts that would be assigned to the operating segment’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, 2016 based on the results of the goodwill impairment test. The following table presents the changes in goodwill by operating segm ent: Liability and Property and Life Personal Other Legacy (in millions) Financial Lines Special Risks Insurance Insurance Operations Portfolio Total Balance at January 1, 2014: Goodwill - gross $ 1,675 $ 623 $ - $ 2,472 $ - $ 182 $ 4,952 Accumulated impairments (797) (392) - (2,211) - (77) (3,477) Net goodwill 878 231 - 261 - 105 1,475 Increase (decrease) due to: Acquisition - - 21 - 7 - 28 Other (49) - - - - - (49) Balance at December 31, 2014: Goodwill - gross 1,626 623 21 2,472 7 182 4,931 Accumulated impairments (797) (392) - (2,211) - (77) (3,477) Net goodwill 829 231 21 261 7 105 1,454 Increase (decrease) due to: Acquisition - 96 55 - 20 37 208 Other (50) - 1 - - - (49) Balance at December 31, 2015: Goodwill - gross 1,576 719 77 2,472 27 219 5,090 Accumulated impairments (797) (392) - (2,211) - (77) (3,477) Net goodwill 779 327 77 261 27 142 1,613 Increase (decrease) due to: Dispositions - (12) - - - - (12) Other (137) 67 - - - (3) (73) Balance at December 31, 2016: Goodwill - gross 1,439 774 77 2,472 27 216 5,005 Accumulated impairments (797) (392) - (2,211) - (77) (3,477) Net goodwill $ 642 $ 382 $ 77 $ 261 $ 27 $ 139 $ 1,528 |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
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 Expense s (Loss Reserves) Loss reserves represent the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and loss adjustment expenses (IBNR), less applicable discount. We regularly review and update the methods used to determine loss reserve est imates. 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 ch anges 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 c ost 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 $ 12.8 billion and $ 12.6 billion at December 31, 2016 and 2015 , respectively. These recoverable amounts are related to certain policies with high deductibles (in excess of high dollar amounts retained by the insured through self-insured retentions, deductibles, retrospective programs, or captive arrangements, each referred to generically as “deductibles”), primarily for U.S. commercial casualty business. With respect to the deductible portion of the claim, 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. Thus, these recoverable amounts represent a credit exposure to us. At December 31, 2016 and 2015 , we held collateral of approximately $ 9.7 billion and $ 9.6 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements. The following table presents the roll forward of activity in Loss Reserves: Years Ended December 31, (in millions) 2016 2015 2014 Liability for unpaid loss and loss adjustment expenses, beginning of year $ 74,942 $ 77,260 $ 81,547 Reinsurance recoverable (14,339) (15,648) (17,231) Net Liability for unpaid loss and loss adjustment expenses, beginning of year 60,603 61,612 64,316 Foreign exchange effect (463) (1,429) (1,061) Dispositions (a) (1,058) - - Changes in net liability for unpaid losses and loss adjustment expenses due to retroactive asbestos reinsurance transaction - 20 141 Total 59,082 60,203 63,396 Losses and loss adjustment expenses incurred : Current year 20,232 20,308 21,279 Prior years, excluding discount 5,788 4,119 703 Prior years, discount charge (benefit) (422) (71) 478 Total losses and loss adjustment expenses incurred 25,598 24,356 22,460 Losses and loss adjustment expenses paid * : Current year (5,825) (5,751) (6,358) Prior years (16,908) (18,205) (17,886) Total losses and loss adjustment expenses paid (22,733) (23,956) (24,244) Reclassified to liabilities held for sale (b) (402) - - Liability for unpaid loss and loss adjustment expenses, end of year: Net liability for unpaid losses and loss adjustment expenses 61,545 60,603 61,612 Reinsurance recoverable 15,532 14,339 15,648 Total $ 77,077 $ 74,942 $ 77,260 (a) Includes amounts related to dispositions through the date of disposition. Includes sale of UGC and Ascot. (b) Represents loss reserves included in our pending sale of certain of our insurance operations to Fairfax. Upon consummation of the sale, we may retain a portion of these reserves through reinsurance arrangements. During 2016, we recognized adverse prior year loss reserve development of $5.8 billion. This adverse development was primarily a result of the following: Higher than expected losses emerging across several casualty product lines, especially in the recent accident years (generally, 2011 to 2015) driven by increased frequency and severity of claims. This recent accident year loss emergence caused us to increase loss development factors applied across many accident years. Loss development factors including wo rkers compensation tail factors, also increased due to an observed lengthening of loss reporting patterns relative to prior expectations. Increases in loss trend assumptions to reflect the latest observed increases in frequency and severity and the impact of these increased loss trends on expected loss ratios. Changes in weights we apply to the various actuarial methods to better align with updated trends. The Loss Development Tables below include loss development data by our major lines of business for th e last 10 accident years. The drivers of prior year development are discussed following each of the Loss Development Tables. Loss Development The table below presents the reconciliation of the net incurred and paid claims development in the following tables to Loss Reserves in the Consolidated Balance Sheets for the year ended December 31, 2016: Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below Gross liability for unpaid losses and loss adjustment expenses (in millions) Commercial Insurance: Liability and Financial Lines U.S. Workers' compensation (before discount) $ 13,069 $ 2,879 $ 15,948 U.S. Excess casualty 8,749 1,115 9,864 U.S. Other casualty 8,746 3,209 11,955 U.S. Financial lines 6,102 1,195 7,297 Europe Casualty and Financial lines 5,587 1,313 6,900 Total Liability and Financial Lines 42,253 9,711 51,964 Property and Special Risks: U.S. and Europe 5,913 1,596 7,509 Total Property and Special Risks 5,913 1,596 7,509 Total Commercial Insurance 48,166 11,307 59,473 Consumer - Personal insurance U.S., Europe and Japan 3,454 377 3,831 Total Consumer - Personal Insurance 3,454 377 3,831 Legacy Portfolio - Run-Off Property and Casualty Insurance Lines U.S. Long Tail Insurance lines (before discount) 5,967 1,679 7,646 Total Legacy Portfolio Run-Off Property and Casualty Insurance Lines 5,967 1,679 7,646 Total $ 57,587 $ 13,363 $ 70,950 Other Reconciling Items Discount on workers compensation lines (3,570) Other product lines 6,192 Unallocated loss adjustment expenses 3,505 Total $ 77,077 Loss Development Information The following is information about incurred and paid loss developments as of December 31, 2016, net of reinsurance. The cumulative number of reported claims, the total of IBNR liabilities and expected development on reported loss included within the net incurred loss amounts are presented in the following section. Reserving Methodology We use a combination of methods to project ultimate losses for both long-tail and short-tail exposures, which include: Paid Development metho d: The Paid Development method estimates ultimate losses by reviewing paid loss patterns and selecting paid ultimate loss development factors. These factors are then applied to paid losses by applying them to accident years, with further expected changes i n paid loss. Since the method does not rely on case reserves, it is not directly influenced by changes in the adequacy of case reserves. Incurred Development method: The Incurred Development method is similar to the Paid Development method, but it uses ca se incurred losses instead of paid losses. Since this method uses more data (case reserves in addition to paid losses) than the Paid Development method, the incurred development patterns may be less variable than paid development patterns. Expected Loss Ra tio method: The Expected Loss Ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year. This method may be useful if loss development patterns are inconsistent, losses emerge very slowly, or there is relatively little loss history from which to estimate future losses. Bornhuetter -Ferguson method: The Bornhuetter -Ferguson method using premiums and paid losses is a combination of the Paid Development method and the Expected Loss Ratio method where th e weights given to each method is the reciprocal of the loss development factor. This method normally determines expected loss ratios similar to the method used for the Expected Loss Ratio method. The Bornhuetter-Ferguson method using premiums and incurred losses is similar to the Bornhuetter-Ferguson method using premiums and paid losses except that it uses case incurred losses. Average Loss method: The Average Loss method multiplies a projected number of ultimate claims by an estimated ultimate severity a verage loss for each accident year to produce ultimate loss estimates. Since projections of the ultimate number of claims are often less variable than projections of ultimate loss, this method can provide more reliable results for reserve categories where loss development patterns are inconsistent or too variable to be relied on exclusively. In updating our loss reserve estimates, we consider and evaluate inputs from many sources, including actual claims data, the performance of prior reserve estimates, obs erved industry trends, our internal peer review processes, including challenges and recommendations from our Enterprise Risk Management group, as well as the views of third party actuarial firms. We use these inputs to improve our evaluation techniques, an d to analyze and assess the change in estimated ultimate loss for each accident year by product line. Our analyses produce a range of indications from various methods, from which we select our best estimate. In determining the actual carried loss reserves, we consider both the internal actuarial best estimate and numerous other internal and external factors, including: an assessment of economic conditions, including real GDP growth, inflation, employment rates or unemployment duration, stock market volatili ty and changes in corporate bond spreads; changes in the legal, regulatory, judicial and social environment, including changes in road safety, public health and cleanup standards; changes in medical cost trends (inflation, intensity and utilization of medi cal services) and wage inflation trends; underlying policy pricing, terms and conditions including attachment points and policy limits; claims handling processes and enhancements; third-party claims reviews that are periodically performed for key classes o f claims such as toxic tort, environmental and other complex casualty claims; third-party actuarial reviews that are periodically performed for key classes of business; input from underwriters on pricing, terms, and conditions and market trends; and changes in our reinsurance program, pricing and commutations. The following factors are relevant to the loss development information Included in the tables below: Table Organization: The tables are organized by accident year and include policies written on an occurrence and claims- made basis. Financial Lines business is primarily written on a claims-made basis, while the majority of the Liability business is written on an occurrence basis. Primarily, all short-tail lines in Property and Special Risks and Personal Insurance are written on an occurrence basis. Groupings: We believe our groupings have homogenous risk characteristics with similar development patterns and would generall y be subject to similar trends. As an example, we separated U.S. business from non-U.S. business for long-tail classes because the claims for these two product lines can be substantially different, and we only produced a table for Europe, which is the lar gest region in our non-U.S. portfolio for non-U.S. long-tail business. Reinsurance: Our reinsurance program varies by exposure type and may change from year to year. This may affect the comparability of the data presented in our tables. Incurred but no t reported liabilities (IBNR): We include development from past reported losses in IBNR. Data excluded from tables: Information with respect to accident years older than ten years is excluded from the development tables. Unallocated loss adjustment expens es are also excluded. Foreign exchange: The loss development for operations outside of the U.S. is presented for all accident years using the current exchange rate at December 31, 2016. Although this approach requires restating all prior accident year inf ormation, the changes in exchange rates do not impact incurred and paid loss development trends. Claim counts: We consider a reported claim to be one claim for each claimant or feature for each loss occurrence. Claims relating to losses that are 100 percen t reinsured are excluded from the reported claims in the tables below. Reported claims for losses from assumed reinsurance contracts are not available and hence not included in the reported claims. There are limitations that should be considered on the reported claim count data in the tables below, including: Claim counts are presented only on a reported (not an ultimate) basis; The tables below include lines of business and geographies at a certain aggregated level which may indicate different frequenc y and severity trends and characteristics, and may not be as meaningful as the claim count information related to the individual products within those lines of business and geographies; Certain lines of business are more likely to be subject to occurrence s involving multiple claimants and features, which can distort measures based on the reported claim counts in the table below; and. Reported claim counts are not adjusted for ceded reinsurance, which may distort the measure of frequency or severity. Suppl emental Information: The information about incurred and paid loss development for all periods preceding year ended December 31, 2016 and the related historical claims payout percentage disclosure is unaudited and is presented as supplementary information. The following tables present undiscounted, incurred and paid losses and allocated loss adjustment expenses by accident year, on a net basis after reinsurance, for 10 years: U.S. Workers' Compensation During 2016, we recognized $1.9 billion of adverse prior year development primarily due to increased tail factors and loss development factors. The net earned premium has declined by approximately 72% from accident year 2007 to accident year 2016. The proportion of large deductible business has increased which has slowed the reporting pattern of claims. Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2016 Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2007 $ 4,505 $ 4,441 $ 4,414 $ 4,544 $ 4,528 $ 4,513 $ 4,469 $ 4,379 $ 4,395 $ 4,548 $ 153 $ 392 225,243 2008 4,114 4,184 4,422 4,425 4,471 4,398 4,385 4,398 4,547 149 504 198,597 2009 3,466 3,633 3,608 3,666 3,639 3,616 3,606 3,733 127 547 147,209 2010 2,706 3,049 3,125 3,148 3,211 3,214 3,311 97 550 132,987 2011 2,901 2,953 3,091 3,158 3,113 3,152 39 521 124,486 2012 2,382 2,194 2,286 2,260 2,334 74 571 70,426 2013 1,932 1,880 1,950 2,060 110 645 46,175 2014 1,729 1,764 1,916 152 807 39,000 2015 1,708 1,864 156 1,027 34,241 2016 1,299 965 25,164 Total $ 28,764 $ 1,057 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (19,124) - Liabilities for losses and loss adjustment expenses and prior year development before 2007, net of reinsurance 3,429 850 Unallocated loss adjustment expense prior year development - 13 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 13,069 $ 1,920 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited 2007 $ 926 $ 1,856 $ 2,452 $ 2,844 $ 3,122 $ 3,359 $ 3,577 $ 3,665 $ 3,773 $ 3,855 2008 785 1,678 2,252 2,655 3,044 3,272 3,476 3,609 3,707 2009 630 1,328 1,756 2,120 2,390 2,621 2,780 2,887 2010 550 1,093 1,537 1,855 2,126 2,288 2,426 2011 519 1,129 1,561 1,884 2,129 2,285 2012 415 804 1,089 1,272 1,440 2013 282 619 879 1,067 2014 231 558 786 2015 234 524 2016 147 Total $ 19,124 Reserving Process and Methodology U.S. Workers’ Compensation is an extremely long-tail line of business, with loss emergence extending for decades. We generally use a combination of loss development methods, frequency/severity and expected loss ratio methods for workers’ compensation. M any of our primary casualty policies contain risk-sharing features, including high deductibles, self-insured retentions or retrospective rating features, in addition to a traditional insurance component. These risk-sharing programs generally are large and complex, comprising multiple products, years and structures, and are subject to amendment over time. We group guaranteed cost and excess of deductible business separately and then further by state and industry subset to the extent that meaningful differenc es are determined to exist. We also separately analyze certain subsets of the portfolio that have unique characteristics (e.g., U.S. government sub-contractor accounts and construction wrap-up business). For excess of deductible business, we also segment by size of deductible and whether the claim is handled by AIG or an outside third party administrator (TPA). For guaranteed cost business, expected loss ratio methods generally are given significant weight only in the most recent accident year. Workers’ co mpensation claims are generally characterized by high frequency, low severity, and relatively consistent loss development from one accident year to the next. We historically have been a leading writer of workers’ compensation, and thus have sufficient volu me of claims experience to use development methods. We generally segregate California (CA) and New York (NY) businesses from the other states to reflect their different development patterns and changing percentage of the mix by state. The claims developm ent tables above are impacted by two other significant initiatives, which offset each other. In recent years, we instituted claims strategy changes and loss mitigation efforts to accelerate settlements, which we believe results in an overall reduction in claim costs. This strategy resulted in an increase in paid losses along the latest diagonals relative to prior years. In addition, we have been reducing premium volume in recent years and shifting a greater proportion of business to insured risk retention structures such as high deductible policies. These mix and volume changes slowed paid and incurred development since excess of deductible claims will typically take longer to emerge and settle. Expected loss ratio methods for business written in excess of a deductible may be given significant weight in the most recent five accident years. In the current analysis, we have increased our tail factor estimates for states other than NY and CA for guaranteed cost business in recognition of longer medical develop ment patterns that we have been seeing in recent years. In addition, we have reflected increases in legal costs we have seen across the portfolio, particularly in California. Additionally, over the years we have written a number of very large accounts whic h include workers’ compensation coverage. These accounts are generally individually priced by our actuaries, and to the extent appropriate, the indicated losses based on the pricing analysis may be used to record the initial estimated loss reserves for the se accounts . Prior Year Development During 2016, we recognized $1.9 billion of adverse prior year development in primary workers’ compensation coverages primarily driven by the risk sharing programs where we provide coverage in excess of large deductibles. For this excess of large deductible business, in 2016, we observed actual loss emergence and development at significantly greater levels than expected based on our previous experience in particular from losses in excess of $1 million. Since these polici es respond to larger claims, the loss reporting pattern is much longer than observed in guaranteed cost workers’ compensation and it takes several years to discern credible changes in the pattern. Furthermore, implementation of claims settlement and loss m itigation strategies over the past several years has made the recent evaluation of data more challenging as historical development patterns may not yet fully reflect these claim and mitigation activities. During 2016, we refined our actuarial methodology by combining data across previously segregated underwriting portfolios to improve our ability to analyze the loss development trends and patterns that had been altered by the mix, claims handling and loss mitigation changes we have made during the last 5 years. We also developed further segmentations by deductible size and other key parameters, such as claims handled by third party administrator’s (TPA) staff and not our claims department. As a result, we determined that the loss emergence patterns had ch anged and lengthened significantly from our prior expectation and therefore, we increased our loss development factors. In addition, for workers’ compensation policies with no deductibles (guaranteed cost), we increased our tail factors for the all other states grouping to reflect the latest unfavorable experience in more mature accident years. This change increased the ultimate losses by approximately $440 million in 2016. We also reflected the increasing cost trends for legal and cost containment servic es, especially in California, as recent trends in this sector have been unfavorable. Furthermore, in 2016, the Florida Supreme Court issued two separate rulings that have increased the potential liability for workers’ compensation claims in that state by u ndoing certain aspects of regulations in place since 2003. The Castellanos ruling eliminated statutory caps on claimant attorney fees in certain cases, and the Westphal ruling eliminated the 104-week limitation on temporary total disability benefits. Also in the second quarter, the Florida Court of Appeals issued the Miles decision, declaring unconstitutional certain restrictions on claimant-paid attorney fees. In in the second quarter 2016, we increased our workers’ compensation reserves by $100 million to reflect our estimate of the costs of these rulings on prior years’ claims. During 2015, we increased our reserves by $234 million, primarily for accident years 2012 and prior in the U.S. Workers’ Compensation line, to reflect estimated increased losses and reduced expectations of future recoveries from our insureds through risk-sharing features. We also recognized $100 million of adverse prior year development in U.S. Workers’ Compensation coverages sold to government contractors in U.S. and non-U.S. mi litary installations as a result of adverse loss emergence from several large accounts in the recent accident years. In addition, we reacted to the adverse emergence by increasing our expected loss ratios in recent accident years. For the remainder of the primary workers’ compensation portfolio, our 2015 analysis was based on the refined segmentation from 2014, and indicated that prior year loss reserve development was flat after taking into account the initiatives that our claim function had undertaken to manage high risk claims. During 2014, consistent with prior year studies, we continued to refine our segmentation of primary workers’ compensation into guaranteed cost and excess of large deductible businesses by deductible size group. The net result of t he analysis was adverse development of $113 million for the primary workers’ compensation line of business. The key drivers of the adverse development in this line of business were increases for guaranteed cost business in California and New York, and incr eases for excess of large deductible business, as well as adverse experience in the construction line. Our revised selections had the greatest adverse effect on the construction line of business ($140 million adverse development) and the national accounts line of business ($125 million adverse development). The most significant favorable effect was in the special workers’ compensation line of business ($155 million favorable development). U.S. Excess Casualty During 2016, we recognized $1.1 billion of adv erse development in Excess Casualty driven by continued higher than expected loss emergence as detailed below. The net earned premium for Excess Casualty has declined by approximately 69% from accident 2007 to accident year 2016. The average limit of the e xcess casualty business has declined over this period and attachment points for certain subsets has been increasing. Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2016 Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2007 $ 1,854 $ 1,820 $ 1,752 $ 2,246 $ 2,072 $ 2,232 $ 2,208 $ 2,183 $ 2,113 $ 2,194 $ 81 $ 228 6,423 2008 1,979 2,000 2,173 1,951 1,832 1,884 1,721 1,667 1,638 (29) 228 4,561 2009 1,851 1,920 1,812 1,650 1,465 1,328 1,418 1,520 102 224 3,689 2010 1,885 2,094 2,091 1,782 1,649 1,736 1,722 (14) 399 3,459 2011 1,784 1,824 1,595 1,427 1,528 1,611 83 425 3,368 2012 1,604 1,400 1,239 1,486 1,566 80 621 3,252 2013 1,096 998 1,136 1,276 140 672 2,494 2014 873 996 1,185 189 788 1,791 2015 913 1,380 467 972 1,325 2016 810 748 540 Total $ 14,902 $ 1,099 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (7,690) - Liabilities for losses and loss adjustment expenses and prior year development before 2007, net of reinsurance 1,537 26 Unallocated loss adjustment expense prior year development - (67) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 8,749 $ 1,058 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited 2007 $ 8 $ 102 $ 301 $ 732 $ 1,085 $ 1,402 $ 1,613 $ 1,712 $ 1,796 $ 1,857 2008 11 97 439 667 842 954 1,061 1,172 1,226 2009 8 69 249 449 624 788 965 1,175 2010 10 197 475 654 795 946 1,052 2011 5 63 225 387 716 921 2012 3 106 288 495 649 2013 15 105 206 386 2014 3 70 211 2015 9 196 2016 17 Total $ 7,690 Reserving Process and Methodology U.S. Excess Casualty policies tend to attach at a high layer above underlying policies, which causes the loss development pattern to be lagged significantly. Many of the claims notified to the excess layers are closed without payment because the claims never reach our layer as a result of high deductibles and other underlying coverages, while the claims that reach our layer and close with payment can be large and highly variable in terms of reported timing and amount. F or a portion of this business, the underlying primary policies are issued by other insurance companies, which can limit our access to relevant information to help inform our judgments as the loss events evolve and mature. We generally use a combination of loss development methods and expected loss ratio methods for excess casualty product lines. We segment our analysis between automobile-related claims and non-automobile claims, due to the shorter-tail nature of the automobile claims. We then further segm ent the non-automobile claims for certain latent exposures such as construction defects and mass torts where losses have unique emergence patterns. Mass tort claims in particular may develop over an extended period of time and impact multiple accident year s when they emerge. The more standard types of claims are then separately analyzed based on attachment point bands, to recognize that the impact of the level of the attachment point can significantly impact the delay in loss reporting and development. In our analyses, losses capped at $10 million were first analyzed using traditional loss development and expected loss ratio methods and then this estimate was used to derive the expected loss estimate for losses above $10 million reflecting the expected rela tionships between the layers, reflecting the attachment point and limit. Expected loss ratio methods are generally used for at least the three latest accident years, due to the relatively low credibility of the reported losses. The loss experience is gener ally reviewed separately by attachment point. The expected loss ratios used for recent accident years are based on the projected ultimate loss ratios for older years adjusted for rate changes and loss trend. Prior Year Development During 2016, we recogniz ed $1.1 billion of adverse development driven by continued higher than expected loss emergence due to increased frequency and severity in recent accident years for both automobile and general liability claims. Approximately $250 million of the adverse deve lopment is attributable to a cohort of commercial automobile claims identified in 2015 which continued to increase in severity in 2016 beyond what was observed or reasonably expected in 2015. The most significant increases in incurred losses were for accid ent years 2011 and subsequent. In particular, the frequency and severity of loss events for accident years 2011 and subsequent showed a significant step change from accident years 2010 and prior. We therefore gave limited credibility to accident year 2010 and prior in selecting our expected loss ratios for 2011 and subsequent accident years due to this shift in loss patterns that is now more evident and credible after examining 2016 data. As a result of the continued adverse emergence, we have increased our loss trend assumptions for general liability and automobile and increased our expected loss ratios for the most recent four accident years. During 2015, U.S. Excess Casualty experienced $1.4 billion of adverse development largely driven by worse than exp ected loss emergence reported in 2015. This increase was largely driven by adverse emergence in both general liability and umbrella auto liability, reflecting worsening trends in the number and nature of high severity losses. Approximately $411 million of the adverse development is related to automobile liability. Based on the adverse emergence we updated our assumptions about loss severity, loss development patterns and expected loss ratios for the most recent accident years. We have seen an increasing tre nd in the frequency of high severity claims, especially in the umbrella automobile liability portfolio. We also observed deterioration in certain class action claims that have complex coverage uncertainties and high limits characterized by increases in new claims and/or demands reported in 2015 and progress towards potential settlements, which have further informed our actuarial projections of ultimate losses for these types of claims. These types of claim classes have the longest emergence period within t he excess casualty class and can impact multiple accident years, and are therefore inherently more volatile. In addition, we also increased losses associated with bad-faith claims by approximately $120 million reflecting an increase in recent settlements. During 2014, U.S. Excess Casualty experienced $106 million of favorable development largely driven by savings on a few large claims. In our excess umbrella analysis in 2014, our revised segmentation led to lower 2005 and subsequent accident year estimate s for non-mass tort claims where we expect underwriting actions and reductions in policy limits to have a favorable effect on ultimate losses from accident years 2007 to 2013 in particular. This was entirely offset by higher selected ultimate losses for ac cident years 2004 and prior as a result of updated loss development patterns for mass tort claims which we segmented separately from the non-ultimate loss ratios of prior years, adjusted for rate changes, estimated loss cost trends and all other changes th at can be quantified. U.S. Other Casualty U.S Other Casualty includes general liability, commercial auto and medical malpractice. We recognized $1.6 billion of adverse development in Other Casualty as a result of increased fr |
VARIABLE LIFE AND ANNUITY CONTR
VARIABLE LIFE AND ANNUITY CONTRACTS | 12 Months Ended |
Dec. 31, 2016 | |
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) and guaranteed minimum withdrawal benefits (GMWB). 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, so the exposure to the guaranteed amount for each feature is independent of the exposure from other features (except a surviving spouse who has a rider to potentially collect both a GMDB upon their spouse’s death and a GMWB during their lifetime). 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) 2016 2015 Equity funds $ 42,266 $ 39,284 Bond funds 7,798 7,261 Balanced funds 25,365 24,849 Money market funds 840 826 Total $ 76,269 $ 72,220 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 account values subject to guarantees also include GMIB to a lesser extent, which is no longer offered. The liabilities for GMDB and GMIB, which are recorded in Future policy 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, 2016 2015 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 $ 91 $ 16 $ 87 $ 16 Net amount at risk 1 1 2 1 Average attained age of contract holders by product 63 68 63 69 Range of guaranteed minimum return rates 0%-4.5% 0%-4.5% The following summarizes GMDB and GMIB liabilities related to variable annuity contracts, excluding assumed reinsurance: Years Ended December 31, (in millions) 2016 2015 2014 Balance, beginning of year $ 491 $ 420 $ 394 Reserve increase (decrease) (32) 127 93 Benefits paid (57) (56) (67) Balance, end of year $ 402 $ 491 $ 420 Assumptions used to determine the GMDB and GMIB liability include interest rates, which vary by year of issuance and products; mortality rates, which are based upon actual experience modified to allow for variations in policy form; lapse rates, which are based upon actual experience modified to allow for variations in policy form; i nvestment returns, using assumptions from a randomly generated model; and asset growth assumptions, which include a reversion to the mean methodology, similar to that applied fo r DAC. 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 ea rlier assumptions should be revised. GMWB Certain of our variable annuity contracts contain optional GMWB benefits and, to a lesser extent, GMAB benefits, which are not currently offered. With a GMWB, the contract holder can monetize the excess o f 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 contrac t 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. T he liabilities for GMWB , 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 $ 1.8 billion an d $ 1.2 billion at December 31, 2016 and 2015 , respectively. See Note 5 for discussion of the fair value measurement of guaranteed benefits that are accounted for as embedded derivatives. We had account values subject to GMWB that totaled $ 41 billion and $ 38 billion at December 31, 2016 and 2015 , respectively. The net amount at risk for GMWB repres ents the present value of minimum guaranteed withdrawal payments, in accordance with contract terms, in excess of account value, assuming no lapses. T he net amount at r isk related to the GMWB guarantees was $ 834 million and $ 640 million at December 31, 2016 and 2015 , respectively. We use derivative instruments and other financial instruments to mitigat e a portion of our exposure that arises from GMWB benefits. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , including fixed and variable rate issuances. The following t able lists our total debt outstanding at December 31, 2016 and 2015 . The interest rates presented in the following table are the range of contractual rates in effect at December 31, 2016 , including fixed and variable-rates: Balance at Balance at At December 31, 2016 Range of Maturity December 31, December 31, (in millions) Interest Rate(s) Date(s) 2016 2015 Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable 0.99% - 8.13% 2017 - 2097 $ 19,432 $ 17,047 Junior subordinated debt 4.88% - 8.63% 2037 - 2058 843 1,327 AIG Japan Holdings Kabushiki Kaisha 0.28% - 0.44% 2020 - 2021 330 106 AIGLH notes and bonds payable 6.63% - 7.5% 2025 - 2029 281 284 AIGLH junior subordinated debt 7.57% - 8.5% 2030 - 2046 361 420 Total AIG general borrowings 21,247 19,184 AIG borrowings supported by assets: (a) MIP notes payable 2.28% - 8.59% 2017 - 2018 1,099 1,372 Series AIGFP matched notes and bonds payable 0.94% - 7.50% 2017 - 2047 32 34 GIAs, at fair value 0.50% - 7.62% 2017 - 2047 2,934 3,276 Notes and bonds payable, at fair value 0.51% - 10.37% 2017 - 2047 494 394 Total AIG borrowings supported by assets 4,559 5,076 Total debt issued or guaranteed by AIG 25,806 24,260 Debt not guaranteed by AIG: Other subsidiaries notes, bonds, loans and mortgages payable 0.73% - 1.15% 2017 735 2 Debt of consolidated investments (b) 0% - 9.31% 2017 - 2062 4,371 4,987 Total debt not guaranteed by AIG 5,106 4,989 Total long term debt (c) $ 30,912 $ 29,249 (a) AIG Parent guarantees all such debt, except for MIP notes payable and Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. Collateral posted to third parties was $ 2.2 billion and $ 2.4 billion at December 31, 2016 and December 31, 2015 , respectively . This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged o r resold by the counterparties. (b ) At December 31, 2016 , includes debt of consol idated investment vehicles related to real estate investments of $ 1.9 billion, affordable housing partnership investments of $ 1.7 b illion and other securitization vehicles of $ 771 m illion . At December 31, 2015 , includes debt of consol idated investment vehicles related to real estate investments of $ 2.4 billio n, affordable housing partnership investments of $ 1.5 b illion and other securitization vehicles of $ 1.0 b illion . (c) Includes debt issuance costs of $88 million and $101 million at December 31, 2016 and 2 015, respectively. 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 $ 4.4 bill ion in borrowings of debt of consolidated investments: December 31, 2016 Year Ending (in millions) Total 2017 2018 2019 2020 2021 Thereafter Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable $ 19,432 $ 167 $ 1,106 $ 997 $ 1,342 $ 1,494 $ 14,326 Junior subordinated debt 843 - - - - - 843 AIG Japan Holdings Kabushiki Kaisha 330 - - - 114 216 - AIGLH notes and bonds payable 281 - - - - - 281 AIGLH junior subordinated debt 361 - - - - - 361 Total AIG general borrowings 21,247 167 1,106 997 1,456 1,710 15,811 AIG borrowings supported by assets: MIP notes payable 1,099 751 348 - - - - Series AIGFP matched notes and bonds payable 32 10 - - - - 22 GIAs, at fair value 2,934 187 486 98 32 242 1,889 Notes and bonds payable, at fair value 494 311 116 - - - 67 Total AIG borrowings supported by assets 4,559 1,259 950 98 32 242 1,978 Total debt issued or guaranteed by AIG 25,806 1,426 2,056 1,095 1,488 1,952 17,789 Other subsidiaries notes, bonds, loans and mortgages payable 735 735 - - - - - Total $ 26,541 $ 2,161 $ 2,056 $ 1,095 $ 1,488 $ 1,952 $ 17,789 Uncollateralized and collateralized notes, bonds, loans and mortgages payable consisted of the following: Uncollateralized Collateralized At December 31, 2016 Notes/Bonds/Loans Loans and (in millions) Payable Mortgages Payable Total AIG general borrowings $ 330 $ - $ 330 Other subsidiaries notes, bonds, loans and mortgages payable * - 735 735 Total $ 330 $ 735 $ 1,065 * AIG does not guarantee any of these borrowings. 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, th e 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, 2016 , the junior subordinated debentures outstanding consisted of $ 113 million of 8.5 p ercent junior subordinated debentures due July 2030, $ 211 million of 8.125 percent junior subordinated debentures due March 2046 and $ 37 million of 7.57 percent j unior subordinated debentures due December 2045, each guaranteed by AIG Parent. Credit Facilities We maintain a committed, revolving syndicated credit facility (the Facility) as a potential source of liquidity for general corporate purposes. The Facility provides for aggregate commitments by the bank syndicate to provide unsecured revolving loans and/or standby letters of credit of up to $ 4.5 billion without any limits on the type of borrowings and is scheduled to expire in November 2020. At December 31, 2016 Available Effective (in millions) Size Amount Expiration Date Syndicated Credit Facility $ 4,500 $ 4,500 November 2020 11/5/2015 |
CONTINGENCIES, COMMITMENTS AND
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 12 Months Ended |
Dec. 31, 2016 | |
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 consolidate d 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 f inancial services industries in general, subject to litigation, including claims for punitive damages. In our insurance operations, litigation arising from claims settlement activities is generally considered in the establishment of our loss reserves . 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 b ehalf 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 E xposure, AIGFP Credit Default Swap Portfolio and Related Matters AIG, AIG Financial Products Corp. and related subsidiaries (collectively 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 di sclosure and other matters (Subprime Exposure Issues). Consolidated 2008 Securities Litigation. On May 19, 2009, a consolidated class action complaint, resulting from the consolidation of eight purported securities class actions filed between May 2008 and January 2009, was 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 (th e Southern District of New York) in In re American International Group, Inc. 2008 Securities Litigation (the Consolidated 2008 Securities Litigation), asserting claims under the Securities Exchange Act of 1934, as amended (the Exchange Act), and claims und er the Securities Act of 1933, as amended (the Securities Act), for allegedly materially false and misleading statements in AIG’s public disclosures from March 16, 2006 to September 16, 2008 relating to, among other things, the Subprime Exposure Issues. On July 15, 2014 and August 1, 2014, lead plaintiff, AIG and AIG’s outside auditor accepted mediators’ proposals to settle the Consolidated 2008 Securities Litigation against all defendants. On October 22, 2014, AIG made a cash payment of $ 960 million, which is being held in escrow until all funds are distributed. On March 20, 2015, the Court issued an Order and Final Judgment approving the class settlement and dismissing the action with prejudice, and the AIG settlement became final on June 2 9, 2015. Individual Securities Litigations. Between November 18, 2011 and February 9, 2015, eleven separate, though similar, securities actions (Individual Securities Litigations) were filed in or transferred to the Southern District of New York (SDNY), as serting claims substantially similar to those in the Consolidated 2008 Securities Litigation against AIG and certain directors and officers of AIG and AIGFP. Two of the actions were voluntarily dismissed. On September 10, 2015, the SDNY granted AIG’s motio n to dismiss some of the claims in the Individual Securities Litigations in whole or in part. AIG has settled eight of the nine remaining actions. The remaining Individual Securities Litigation pending in the SDNY was brought by a series of institutional i nvestor funds. After the court’s decision granting AIG’s motion to dismiss plaintiff’s claims in part, the claims in the remaining action are limited to a claim under Section 10(b) of the Exchange Act for allegedly materially false and misleading statement s in AIG’s public disclosures from February 8, 2008 to September 16, 2008 relating to, among other things, the Subprime Exposure Issues. On January 17, 2017, AIG filed a motion for summary judgment to dismiss the vast majority of the institutional investor funds’ remaining claims and a motion to stay the action pending the resolution of this motion. On March 27, 2015, an additional securities action was filed in state court in Orange County, California asserting a claim against AIG pursuant to Sectio n 11 of the Securities Act (the California Action) that is substantially similar to those in the Consolidated 2008 Securities Litigation and the Individual Securities Litigations. After denying AIG’s motion to remove the California Action to federal court and stay the action, the trial court overruled AIG’s demurrer to dismiss all of the claims asserted in the California Action, which is currently on appeal to the California Court of Appeals for the Fourth Appellate District. We have accrued our current est imate of probable loss with respect to these litigations. 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 c redit 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 Eq ual Protection, Due Process, and Takings Clauses of the U.S. Constitution. 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 lett er 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 due to our Board’s refusal of SICO’s demand and denied the United States’ motion to dismiss SICO’s direct, non-derivative 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 c laims: (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 (the Credit Agreement Shareholder Class); 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 (the Reverse Stock Split Shareholder Class). SICO has provided notice of class certification to potential members of the classes, who, pursuant t o 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. On June 15, 2015, the Court of Federal Claims issued its opinion and order in the SICO Treasury Action. The Court found that the United States exceeded its statutory authority by exacting approximately 80 percent of AIG’s equity in exchange for the FRBNY Credit Facility, but that AIG shareholders suffered no damages as a result. SICO argued during trial that the two classes are entitled to a total of approximately $ 40 billion in damages, plus interest. The Court also found that the Unit ed States was not liable to the Reverse Stock Split Class in connection with the reverse stock split vote at the June 30, 2009 annual meeting of shareholders. On June 17, 2015, the Court of Federal Claims entered judgment stating that “the Credit Agreement Shareholder Class shall prevail on liability due to the Government's illegal exaction, but shall recover zero damages, and that the Reverse Stock Split Shareholder Class shall not prevail on liability or damages.” SICO filed a notice of appeal of the Jul y 2, 2012 dismissal of SICO’s unconstitutional conditions claim, the June 26, 2013 dismissal of SICO’s derivative claims, the Court’s June 15, 2015 opinion and order, and the Court’s June 17, 2015 judgment to the United States Court of Appeals for the Fede ral Circuit. The United States filed a notice of cross appeal of the Court’s July 2, 2012 opinion and order denying in part its motion to dismiss, the Court’s June 26, 2013 opinion and order denying its motion to dismiss SICO’s direct claims, the Court’s J une 15, 2015 opinion and order, and the Court’s June 17, 2015 judgment to the United States Court of Appeals for the Federal Circuit. On August 25, 2015, SICO filed its appellate brief, in which it stated SICO does not appeal the dismissal of the derivativ e claims it asserted on behalf of AIG. In the Court of Federal Claims, 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 Gov ernors and the United States (as the FRBNY’s principal), for any recovery in the SICO Treasury Action. AIG believes that any indemnification obligation would arise only if: (a) SICO prevails on its appeal and ultimately receives an award of damages; (b) th e United States then 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 reversal of the Court of Federal Claim’s June 17, 2015 decision and judgment and a final determination that the United States is liable for damages, together with a final determination that AIG is obligated to indemnif y the United States for any such damages, could have a material adverse effect on our business, consolidated financial condition and results of operations. Regulatory and Related Matters In April 2007, the National Association of Insurance Commissioners (N AIC) 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 Depar tment 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, Minne sota, 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 premiu m 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 premi um 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 p lan 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 Uni on, 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. Unde r 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 st andards 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. On April 29, 2016, National Union and other AIG companies achieved a settlement in principle of civil litigation relating to the conduct of their accident and health business, subject to formal documentation and court approval. Prel iminary approval of the settlement was granted on October 14, 2016, and the settlement funds have been placed into escrow, pending final court approval of the settlement. We had previously accrued our estimate of loss with respect to this settlement. On Ma y 23, 2016, the managing lead state in the multi-state examination ordered that the companies subject to the Regulatory Settlement Agreement have “complied with the terms” of the Regulatory Settlement Agreement and that no contingent fine or civil penalty would be due. Legal Reserves We recorded increases in our legal reserve liability of $ 14 million and $ 25 million in the years ended December 31, 2016 and 2015 , respectively. 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, 2016: (in millions) 2017 $ 295 2018 222 2019 167 2020 135 2021 94 Remaining years after 2021 185 Total $ 1,098 Rent expense was $ 331 million, $ 327 million and $ 471 million for the years ended December 31, 2016 , 2015 and 2014 , 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 $ 3.2 billion at December 31, 2016 . 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 of AIG M arkets 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). The total amount outstanding at December 31, 2016 was $ 140 mi llion. In those transactions, AIGFP has agreed to pay such amount 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 pa yments 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 stand by 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 general ly economically defeased, lessee bankruptcy is the most likely circumstance in which AIGFP would be required to pay without reimbursement. Asset Dispositions We are subject to financial guarantees and indemnity arrangements in connection with the completed sales of businesses 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 provided 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 som e 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 payout under certain of these arrangements. Overall, we believe that it is unlikely we will have to make any material payments related to completed sales under these arrangements, and no material liabilities related to these arrangements have been recorded in the Consolidated Bal ance Sheets. Other See Note 10 to the Consolidated Financial Statements for additional discussion on commitments and guarantees associated with VIEs. See Note 11 to the Consolidated Financial Statements for additional disclosures about der ivatives. See Note 25 to the Consolidated Financial Statements for additional disclosures about guarantees of outstanding debt. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
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, 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 Year Ended December 31, 2015 Shares, beginning of year 1,906,671,492 (530,744,521) 1,375,926,971 Shares issued - 371,806 371,806 Shares repurchased - (182,382,160) (182,382,160) Shares, end of year 1,906,671,492 (712,754,875) 1,193,916,617 Year Ended December 31, 2016 Shares, beginning of year 1,906,671,492 (712,754,875) 1,193,916,617 Shares issued - 2,069,110 2,069,110 Shares repurchased - (200,649,886) (200,649,886) Shares, end of year 1,906,671,492 (911,335,651) 995,335,841 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 for this purpose. In considering whether to pay a dividend or purchase shares of AIG Common Stock, our Board of Directors considers a number of factors, including, but not limited to: the capital resources available to support our insurance operations and business strategies, AIG’s funding capacity and capital resources in comparison to internal benchmarks, expectations for capital generation, rating agency expectations for capital, regulatory sta ndards for capital and capital distributions, and such other factors as our Board of Directors may deem relevant. The following table presents record date, payment date and dividends paid per share on AIG Common Stock: Dividends Paid Record Date Payment Date Per Share December 8, 2016 December 22, 2016 $ 0.32 September 15, 2016 September 29, 2016 0.32 June 13, 2016 June 27, 2016 0.32 March 14, 2016 March 28, 2016 0.32 December 7, 2015 December 21, 2015 0.28 September 14, 2015 September 28, 2015 0.28 June 11, 2015 June 25, 2015 0.125 March 12, 2015 March 26, 2015 0.125 December 4, 2014 December 18, 2014 0.125 September 11, 2014 September 25, 2014 0.125 June 10, 2014 June 24, 2014 0.125 March 11, 2014 March 25, 2014 $ 0.125 Repurchase of AIG Common Stock The following table presents repurchases of AIG Common Stock and warrants to purchase shares of AIG Common Stock: Years Ended December 31, (in millions) 2016 2015 * 2014 Aggregate repurchases of common stock $ 11,460 $ 10,691 $ 4,902 Total number of common shares repurchased 201 182 88 Aggregate repurchases of warrants $ 309 $ - $ - Total number of warrants repurchased 17 - - * T h e total number of shares of AIG Common Stock repurchased in 2015 includes (but the aggregate purchase price does not include) approximately 3.5 million shares of AIG Common Stock received in January 2015 upon the settlement of an accelerated stock repurchase ( ASR ) agreement executed in the fourth quarter of 2014. Our Board of Directors has authorized the repurchase of shares of AIG Common Stock through a series of actions. On November 2, 2016, our Board of Director s authorized an additional increase of $ 3.0 billion to its previous share repurchase authorization, resulting in an aggregate remaining authorization on such date of approximately $ 4.4 billion. As of December 31, 2016, approximately $ 2.5 billion remained under our share repurchase authorization. Shares may be repurchased from time to time in the open market, private purchases, through forward, derivati ve, accelerated repurchase or automatic repurchase transactions or otherwise (including through the purchase of warrants) . Certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans. I n the second, third and fourth quarters of 2014, we executed five 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 s. Accumulated Other Comprehensive Income The following table presents a rollforward of Accumulated other comprehensive income: Unrealized Appreciation (Depreciation) of Fixed Maturity Investments Unrealized on Which Other-Than- Appreciation Foreign Retirement Temporary Credit (Depreciation) Currency Plan Impairments of All Other Translation Liabilities (in millions) Were Taken Investments Adjustments Adjustment Total Balance, January 1, 2014, net of tax $ 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, net of tax $ 1,043 $ 12,327 $ (1,784) $ (969) $ 10,617 Change in unrealized depreciation of investments (488) (10,519) - - (11,007) Change in deferred policy acquisition costs adjustment and other (146) 1,265 - - 1,119 Change in future policy benefits 92 1,112 - - 1,204 Change in foreign currency translation adjustments - - (1,129) - (1,129) Change in net actuarial gain - - - 413 413 Change in prior service credit - - - (239) (239) Change in deferred tax asset (liability) 195 1,380 29 (51) 1,553 Total other comprehensive income (loss) (347) (6,762) (1,100) 123 (8,086) Noncontrolling interests - (1) (5) - (6) Balance, December 31, 2015, net of tax $ 696 $ 5,566 $ (2,879) $ (846) $ 2,537 Change in unrealized appreciation (depreciation) of investments (326) 931 - - 605 Change in deferred policy acquisition costs adjustment and other (19) 286 - - 267 Change in future policy benefits - (676) - - (676) Change in foreign currency translation adjustments - - 93 - 93 Change in net actuarial loss - - - (151) (151) Change in prior service credit - - - (22) (22) Change in deferred tax asset 75 298 157 47 577 Total other comprehensive income (loss) (270) 839 250 (126) 693 Noncontrolling interests - - - - - Balance, December 31, 2016, net of tax $ 426 $ 6,405 $ (2,629) $ (972) $ 3,230 The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2016 , 2015 and 2014 : Unrealized Appreciation (Depreciation) of Fixed Maturity Securities Unrealized on Which Other-Than- Appreciation Foreign Retirement Temporary Credit (Depreciation) Currency Plan Impairments Were of All Other Translation Liabilities (in millions) Recognized Investments Adjustments Adjustment Total December 31, 2014 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 December 31, 2015 Unrealized change arising during period $ (471) $ (7,068) $ (1,129) $ 285 $ (8,383) Less: Reclassification adjustments included in net income 71 1,074 - 111 1,256 Total other comprehensive income (loss), before income tax expense (benefit) (542) (8,142) (1,129) 174 (9,639) Less: Income tax expense (benefit) (195) (1,380) (29) 51 (1,553) Total other comprehensive income (loss), net of income tax expense (benefit) $ (347) $ (6,762) $ (1,100) $ 123 $ (8,086) December 31, 2016 Unrealized change arising during period $ (222) $ 1,769 $ 93 $ (344) $ 1,296 Less: Reclassification adjustments included in net income 123 1,228 - (171) 1,180 Total other comprehensive income (loss), before income tax expense (benefit) (345) 541 93 (173) 116 Less: Income tax benefit (75) (298) (157) (47) (577) Total other comprehensive income (loss), net of income tax benefit $ (270) $ 839 $ 250 $ (126) $ 693 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 Years Ended December 31, Comprehensive Income Affected Line Item in the (in millions) 2016 2015 2014 Consolidated Statements of Income Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken Investments $ 123 $ 71 $ 28 Other realized capital gains Total 123 71 28 Unrealized appreciation (depreciation) of all other investments Investments 935 1,054 669 Other realized capital gains Deferred acquisition costs adjustment 293 3 (20) Amortization of deferred policy acquisition costs Future policy benefits - 17 (117) Policyholder benefits and losses incurred Total 1,228 1,074 532 Change in retirement plan liabilities adjustment Prior-service credit 15 214 47 * Actuarial losses (186) (103) (49) * Total (171) 111 (2) Total reclassifications for the period $ 1,180 $ 1,256 $ 558 * These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 21 to the Consolidated Financial Statements. |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 12 Months Ended |
Dec. 31, 2016 | |
EARNINGS PER SHARE (EPS) | |
EARNINGS PER SHARE (EPS) | 18. 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 d iluted 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 compu tation of basic and diluted EPS: Years Ended December 31, (dollars in millions, except per share data) 2016 2015 2014 Numerator for EPS: Income (loss) from continuing operations $ (259) $ 2,222 $ 7,574 Less: Net income (loss) from continuing operations attributable to noncontrolling interests 500 26 (5) income (loss) attributable to AIG common shareholders from continuing operations (759) 2,196 7,579 Income (loss) from discontinued operations, net of income tax expense (90) - (50) Net income (loss) attributable to AIG common shareholders $ (849) $ 2,196 $ 7,529 Denominator for EPS: Weighted average shares outstanding — basic 1,091,085,131 1,299,825,350 1,427,959,799 Dilutive shares - 34,639,533 19,593,853 Weighted average shares outstanding — diluted (a)(b) 1,091,085,131 1,334,464,883 1,447,553,652 Income (loss) per common share attributable to AIG: Basic: Income (loss) from continuing operations $ (0.70) $ 1.69 $ 5.31 Income from discontinued operations $ (0.08) $ - $ (0.04) Income (loss) attributable to AIG $ (0.78) $ 1.69 $ 5.27 Diluted: Income (loss) from continuing operations $ (0.70) $ 1.65 $ 5.24 Income from discontinued operations $ (0.08) $ - $ (0.04) Income (loss) attributable to AIG $ (0.78) $ 1.65 $ 5.20 (a) Shares in the diluted EPS calculation represent basic shares for 2016 due to the net loss in that period. The shares excluded from the calculation were 30,326,772 shares. (b) Dilutive shares included our share-based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011. The number of shares excluded from diluted shares outstanding were 0.2 million, 0.2 million and 0.3 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, because the effect of including those shares i n the calculation would have been anti-dilutive. |
STATUTORY FINANCIAL DATA AND RE
STATUTORY FINANCIAL DATA AND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2016 | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | 19. Statutory Financial Data a nd Restrictions The following table presents statutory net income (loss) and capital and surplus for our Property Casualty Insurance Companies and our Life Insurance Companies in accordance with statutory accounting practices: (in millions) 2016 2015 2014 Years Ended December 31, Statutory net income (loss) (a)(b)(c) : Property Casualty Insurance Companies : Domestic (c) $ (229) $ 1,444 $ 3,265 Foreign (1,316) 594 1,252 Total Property Casualty Insurance Companies $ (1,545) $ 2,038 $ 4,517 Life Insurance Companies : Domestic $ 2,252 $ 2,200 $ 2,865 Foreign 47 (5) (9) Total Life Insurance Companies $ 2,299 $ 2,195 $ 2,856 At December 31, Statutory capital and surplus (a)(b)(c) : Property Casualty Insurance Companies : Domestic (c) $ 21,819 $ 25,956 Foreign 12,689 12,995 Total Property Casualty Insurance Companies $ 34,508 $ 38,951 Life Insurance Companies : Domestic $ 12,363 $ 8,379 Foreign 490 422 Total Life Insurance Companies $ 12,853 $ 8,801 Aggregate minimum required statutory capital and surplus : Property Casualty Insurance Companies : Domestic $ 5,390 $ 7,119 Foreign 7,355 7,208 Total Property Casualty Insurance Companies $ 12,745 $ 14,327 Life Insurance Companies : Domestic $ 3,107 $ 3,659 Foreign 234 179 Total Life Insurance Companies $ 3,341 $ 3,838 (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 ) In aggregate, the 2015 Property Casualty Insurance Companies and Life Insurance Companies statutory net income decreased by $ 146 million and the 2015 Property Casualty Insurance Companies and Life Insurance Companies statutory capital and surplus increased by $ 3.2 billion, com pared to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2015, due to finalization of statutory filings, as well as inclusion of the finalized statutory net loss and statutory capital and surplus of Eaglest one of $3.4 million and $1.9 billion, respectively. The results of Eaglestone were excluded from the 2015 Property Casualty Insurance Companies statutory net income and statutory capital and surplus in our previously reported Form 10-K for the year ended D ecember 31, 2015. ( c) Property Casualty Insurance Companies recognized $200 million and $ 2.9 billion of capital contributions from AIG Parent in their statutory financial statements as of December 31, 2016 and 2015, respectively, related to the reserve st rengthening in the fourth quarter of each year . These capital contributions were received in February 2017 and January 2016, respectively. 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 stateme nts 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 ge nerally 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 act ion 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, 2016 and 2015 , all domestic and foreign insurance subsidiaries individually exceeded the minimum required statutory capital and surplus requirements and all domestic insurance subsidiaries individually exceed ed RBC minimum required levels. At December 31, 2016 and 2015 , our domestic insurance subsidiaries used the following permitted practices that resulted in reported statutory surplus or risk-based capital that is significantly different from the statutory surplus or risk based capital that wo uld have been reported had NAIC statutory accounting practices or the prescribed regulatory accounting practices of their respective state regulator been followed in all respects: In 2016 and 2015, a domestic life insurance subsidiary domiciled in Texas ap plied a permitted statutory accounting practice, initially adopted in 2015, to report derivatives used to hedge interest rate risk on product-related embedded derivatives at amortized cost instead of fair value. This permitted practice resulted in a n incr ease in the statutory surplus of our subsidiary of $ 645 million at December 31, 2016 and a reduction of $366 million at December 31, 2015. In 2016, certain domestic property and casualty subsidiaries domiciled in New York, Pennsylvania and Delaware applie d a permitted practice to present the inception date effects of the 2017 adverse loss development cover in their 2016 statutory-basis financial statements. This permitted practice resulted in an increase in the subsidiaries’ aggregate surplus as of Decemb er 31, 2016 of $ 724 million. This increase otherwise would have been recognized in 2017. As described in Note 13 , our domestic property and casualty insurance subsidiaries domiciled in New York, Pennsylvania and Delaware discount non-tabular workers’ compensation reserves based on applicable prescribed or approved regulations, or in the case of our Delaware subsidiary, based on a permitted practice. This practice did not have a material impact on our statutory surplus, 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 life insurance subsidiaries manage the capital impact of statutory reserve requirements under Regulation XXX and Guideline AXXX through unaffiliated and affiliated reinsurance trans actions. The affiliated life insurers providing reinsurance capacity for such transactions are fully licensed insurance companies and are not formed under captive insurance laws. One of these affiliated reinsurance arrangements, under which certain Regulat ion XXX and Guideline AXXX reserves related to new and in-force business were ceded to an affiliated U.S. life insurer, was recaptured effective December 31, 2016 and these reserves were ceded to an un affiliated reinsurer. Under the other intercompany rein surance 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 affilia ted off-shore life insurer . 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 re gulatory 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 Superi ntendent 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 percen t 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 do miciled. 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 fore ign 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 $ 45.1 billion of the statuto ry 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, 2016 . To our knowledge, no AIG insurance company is currentl y on any regulatory or similar “watch list” with regard to solvency. Parent Company Dividend Restrictions At December 31, 2016 , our ability to pay dividends is not subject to any significant contractual restrictions, but remains subject to regul atory restrictions. See Note 17 herein for additional information about our ability to pay dividends to our shareholders. |
SHARE-BASED AND OTHER COMPENSAT
SHARE-BASED AND OTHER COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED AND OTHER COMPENSATION PLANS | |
SHARE-BASED AND OTHER COMPENSATION PLANS | 20 . Share-Based Compensation Plans The following table presents our share -based compensation expense: Years Ended December 31, (in millions) 2016 2015 2014 Share-based compensation expense - pre-tax * $ 237 $ 365 $ 349 Share-based compensation expense - after tax 154 237 227 * We recognized $ 105 million, $ 147 million and $ 120 million for immediately vested stock-settled awards issued to retirement eligible employees in 2016 , 2015 and 2014 , respectively. Employee Plans The Company grants annual Long Term Incentive (LTI) awards under the 2013 Long Term Incentive Plan (2013 LTIP), which is governed by the AIG 2013 Omnibus Incentive Plan (2013 Plan). The 2013 Plan replace d the AIG 2010 Stock Incentive Plan (2010 Plan) as of May 15, 2013 but does not affect the terms and conditions of any award issued under the 2010 Plan. The 2013 Plan is currently the only plan under which share-settled awar ds can be made. Our share-sett led awards are settled with previously acquired shares held in AIG’s treasury . 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) th e 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 gran ted 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 2016 , performance share units (PSUs) and deferred stock units (DSUs) were granted under the 2013 Plan and 43,510,168 shares are av ailable for future grants as of December 31, 2016 . PSUs were issued to employees as part of our long-term incentive program in March 2016 and are also 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 201 0 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 Pla n was 60 million. During 2013, 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 LTIP provides for the annual grant of PSUs to certain employees, including our senior executive officers and other highly compe nsated 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 p erformance period. These performance goals are pre-established by AIG’s Compensation and Management Resources Committee (CMRC) for each annual grant and may differ from year to year. For each award, 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 fo llowing the end of a performance period and January 1 of each of the next two years. 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, retirement eligibility or death during the vesting period. Beginning in 2015, LTI awards granted accrue dividend equivalent units (DEUs) in the form of additional PSUs whenever a cash dividend is declared on shares of AIG Common Stock; the DEUs are subject to the same vesting terms and conditions as the underlying PSUs. Performance Share Unit Valuation The value of each award is based on the nature of the performance goals and the pr ice per unit is fixed as of the grant date. PSUs granted in 2016 are measured based on AIG’s total shareholder return (TSR). P SUs granted in 2015 and 2014 are measured based on AIG’s TSR and credit default swap (CDS) spread , weighted 75 perc ent and 25 percent, respectively. PSUs granted in 2013 are measured based on AIG’s TSR and growth in tangible book value per common share (TBVPS) (excluding accumulated other comprehensive income) weighted 50 percent eac h. The fair value of PSUs to be earned based on AIG’s CDS spreads and TBVPS was based on the closing price of AIG Common Stock on the grant date. However, PSUs granted in 2014 and 2013 that vest based on these goals were discounted by the present value of estimated dividends to be paid during the respective vesting periods as these awards do not accrue dividends or DEUs. The fair value of PSUs to be earned based on AIG’s TSR was determined on the grant date using a Monte Carlo simulation. The following ta ble presents the assumptions used to estimate the fair value of PSUs that vest based on AIG’s TSR: 2016 2015 2014 Expected dividend yield (a) 2.17 % 1.78 % 1.13 % Expected volatility (b) 24.55 % 22.71 % 23.66 % Risk-free interest rate (c) 1.30 % 1.01 % 0.76 % (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 interes t 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 LTI awards (a) : Weighted Average As of or for the Year Number of PSUs (b) Grant-Date Fair Value Ended December 31, 2016 2016 LTI 2015 LTI 2014 LTI 2013 LTI (c) 2016 LTI 2015 LTI 2014 LTI 2013 LTI Unvested, beginning of year - 3,046,958 2,559,359 2,250,109 $ - $ 55.08 $ 48.82 $ 37.07 Granted 5,092,452 4,704 - 3,471,850 50.77 64.23 - 36.55 Vested (2,315,667) (681,396) (652,198) (3,974,941) 50.42 54.03 48.65 36.20 Forfeited (188,187) (193,711) (174,545) (165,114) 50.26 54.14 48.81 37.71 Unvested, end of year (d) 2,588,598 2,176,555 1,732,616 1,581,904 $ 51.12 $ 55.52 $ 48.88 $ 38.03 (a) Excludes DSUs, which are discussed under Non-Employee Plan. (b) Except for the 2013 LTI award, 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 for the respective awards, which is determined in the quarter after the applicable performance period ends. (c) The performance period for the 201 3 LTI awards ended December 31, 201 5. T he number of earned PSUs was based on the results of the 201 3 performance goals adjudicated in the first quarter of 201 6 by the CMRC. This resulted in additional units being granted, but no additional expense was recognized for these units. (d) At December 31, 2016 , the total unrecognized compensation cost (net of expected forfeitures) for the unvested PSUs was $ 163 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 1.26 years and 4 years . Non-Employee Plan Our non-employee directors, who serve on our Board of Directors, receive share-based compensatio n in the form of fully vested DSUs with delivery deferred until retirement from the Board. DSUs granted in 2016 , 2015 and 2014 accrue DEUs equal to the amount of any regular quarterly dividend that would have been paid by AI G if the shares of AIG Common Stock underlying the DSUs had been outstanding. In 2016 , 2015 and 2014 , we granted to non-employee directors 41,974 , 32,342 and 28,477 DSUs, respectively, un der the 2013 Plan, and recognized expense of $ 2.4 million, $ 1.9 million and $ 1.5 million, respectively. 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. During 2016, 2015 and 2014, we paid $29 million, $101 million and $155 million, respectively, to settle outstanding TARP-related awards. As of December 31, 2016, all TARP-related awards have been settled. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2016 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 21. 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 on or before December 1, 2014 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. 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. Employees satisfying certain age and service requirements (i.e. grandfathered employees) remain covered under the average pay formula that was in effect prior to the conversion to the cash balance formula. The final average pay formula 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 benefit under the cash balance formula or the final average pay formula at retirement. Non-U.S. defined benefit plans generally are 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 non-qualified unfunded defined benefit plans, such as the AIG Non-Qualified Retirement Income Plan (AIG NQRIP) for certain employees, including key executives, designed to supplement pension benefits provided by the qualified plan. The AIG NQRIP 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. Plan Freeze Effective January 1, 2016, the U.S. defined benefit pension plans were frozen. Consequently, these plans are closed to new participants and current participants no longer earn benefits. However, interest credits continue to accrue on the existing cash balance accounts and participants are continuing to accrue years of service for purposes of vesting and early retirement eligibility and subsidies as they continue to be employed by AIG. 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 generally is 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 generally are 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 December 31, U.S. Plans * Non-U.S. Plans * U.S. Plans Non-U.S. Plans (in millions) 2016 2015 2016 2015 2016 2015 2016 2015 Change in projected benefit obligation: Benefit obligation, beginning of year $ 5,324 $ 5,769 $ 1,146 $ 1,099 $ 208 $ 229 $ 75 $ 64 Service cost 19 192 31 43 2 5 3 3 Interest cost 181 220 21 25 7 8 3 3 Actuarial (gain) loss 118 (423) 98 (16) (2) (23) - 9 Benefits paid: AIG assets (24) (17) (12) (9) (14) (11) (1) (1) Plan assets (332) (285) (35) (24) - - - - Plan amendment - (132) 1 24 - - - - Curtailments - - (2) - (1) - - - Settlements (338) - (16) (15) - - - - Foreign exchange effect - - 19 (67) - - - (3) Acquisitions - - - 72 - - - - Other - - (5) 14 (4) - - - Projected benefit obligation, end of year $ 4,948 $ 5,324 $ 1,246 $ 1,146 $ 196 $ 208 $ 80 $ 75 Change in plan assets: Fair value of plan assets, beginning of year $ 4,359 $ 4,111 $ 773 $ 708 $ - $ - $ - $ - Actual return on plan assets, net of expenses 154 (8) 19 47 - - - - AIG contributions 24 558 71 62 14 11 1 1 Benefits paid: AIG assets (24) (17) (12) (9) (14) (11) (1) (1) Plan assets (332) (285) (35) (24) - - - - Settlements (338) - (16) (15) - - - - Foreign exchange effect - - 6 (44) - - - - Dispositions - - (4) - - - - - Acquisitions - - - 35 - - - - Other - - 1 13 - - - - Fair value of plan assets, end of year $ 3,843 $ 4,359 $ 803 $ 773 $ - $ - $ - $ - Funded status, end of year $ (1,105) $ (965) $ (443) $ (373) $ (196) $ (208) $ (80) $ (75) Amounts recognized in the balance sheet: Assets $ - $ - $ 53 $ 46 $ - $ - $ - $ - Liabilities (1,105) (965) (496) (419) (196) (208) (80) (75) Total amounts recognized $ (1,105) $ (965) $ (443) $ (373) $ (196) $ (208) $ (80) $ (75) Pre-tax amounts recognized in Accumulated other comprehensive income: Net gain (loss) $ (1,405) $ (1,324) $ (251) $ (161) $ 17 $ 13 $ (15) $ (16) Prior service (cost) credit - - (28) (16) 2 13 - - Total amounts recognized $ (1,405) $ (1,324) $ (279) $ (177) $ 19 $ 26 $ (15) $ (16) * Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $ 278 million and $ 299 million for the U.S. at December 31, 2016 and 2015 , respectively , and $ 199 million for the non-U.S for both 2016 and 2015 . The following table presents the accumulated benefit obligations for U.S. and n on-U.S. pension benefit plans: At December 31, (in millions) 2016 2015 U.S. pension benefit plans $ 4,948 $ 5,324 Non-U.S. pension benefit plans $ 1,215 $ 1,109 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) 2016 2015 2016 2015 2016 2015 2016 2015 Projected benefit obligation $ 4,948 $ 5,324 $ 1,121 $ 999 $ 4,948 $ 5,324 $ 1,029 $ 912 Accumulated benefit obligation 4,948 5,324 1,016 896 4,948 5,324 1,009 889 Fair value of plan assets 3,843 4,359 545 506 3,843 4,359 536 497 The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits: Years Ended December 31, Pension Postretirement U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 Components of net periodic benefit cost: Service cost $ 19 $ 192 $ 173 $ 31 $ 43 $ 42 $ 2 $ 5 $ 4 $ 3 $ 3 $ 2 Interest cost 181 220 228 21 25 29 7 8 9 3 3 2 Expected return on assets (292) (295) (288) (26) (25) (22) - - - - - - Amortization of prior service credit - (22) (33) - (2) (3) (12) (11) (11) - (1) - Amortization of net (gain) loss 25 92 42 7 9 7 (1) - - 1 - - Curtailment (gain) loss - (179) - (6) (1) 1 (1) - - - - - Settlement loss 149 - - 2 1 - - - - - - - Net periodic benefit cost (credit) $ 82 $ 8 $ 122 $ 29 $ 50 $ 54 $ (5) $ 2 $ 2 $ 7 $ 5 $ 4 Total recognized in Accumulated other comprehensive income (loss) $ (82) $ 143 $ (793) $ (101) $ 38 $ (40) $ (7) $ 12 $ (21) $ 1 $ (9) $ (11) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (164) $ 135 $ (915) $ (130) $ (12) $ (94) $ (2) $ 10 $ (23) $ (6) $ (14) $ (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 $ 41 million and $ 0.3 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 period ic benefit cost over the next fiscal year is a $ 0.8 million credit in the aggregate. As of 2016, interest cost for pension and postretirement benefits for our U.S. plans and largest non-U.S. plans is measured by applying the specif ic spot rates along the yield curve to the plans’ corresponding discounted cash flows that comprise the obligation (the Spot Rate Approach). This method provides a more precise measurement of interest cost by aligning the timing of the plans’ discounted ca sh flows to the corresponding spot rates on the yield curve . Previously, interest cost was measured utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligations. A 100 basis point increase in the di scount rate or expected long-term rate of return would decrease the 2017 pension expense by approximately $ 20 million and $ 45 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 2017 pension expense by approximately $ 24 million and $ 45 million, respectively, with all other items remainin g 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 (a) U.S. Plans Non-U.S. Plans (a) December 31, 2016 Discount rate 4.14 % 1.50 % 4.02 % 3.95 % Rate of compensation increase N/A (b) 2.50 % N/A 3.38 % December 31, 2015 Discount rate 4.32 % 2.17 % 4.21 % 4.09 % Rate of compensation increase N/A (b) 2.64 % N/A 3.43 % (a) 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. (b) Compensation increases are no longer applicable due to the plan freeze that became effective January 1, 2016. The following table summarizes assumed health care cost trend rates f or the U.S. plans: At December 31, 2016 2015 Following year: Medical (before age 65) 6.31% 6.79% Medical (age 65 and older) 5.00% 6.64% 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) 2038 2027 Medical (age 65 and older) 2038 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) 2016 2015 2016 2015 U.S. plans $ 4 $ 6 $ (3) $ (4) Non-U.S. plans $ 19 $ 17 $ (14) $ (12) 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 b enefit costs: Pension Postretirement U.S. Plans Non-U.S. Plans * U.S. Plans Non-U.S. Plans * For the Year Ended December 31, 2016 Discount rate 4.33 % 2.17 % 4.21 % 4.09 % Rate of compensation increase N/A 2.64 % N/A 3.43 % Expected return on assets 7.00 % 3.28 % N/A N/A For the Year Ended December 31, 2015 Discount rate 3.94 % 2.33 % 3.77 % 4.04 % Rate of compensation increase 3.40 % 2.89 % N/A 3.29 % Expected return on assets 7.25 % 3.33 % N/A N/A For the Year Ended December 31, 2014 Discount rate 4.83 % 2.77 % 4.59 % 4.77 % Rate of compensation increase 3.50 % 2.89 % N/A 3.34 % Expected return on assets 7.25 % 2.93 % 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 US Pension Discount Yield Curve at December 31, 2016 and 2015 , which resulted in a single discount rate that would produce the same liability at the respective measurement da tes. The discount rates were 4.15 percent at December 31, 2016 and 4.32 percent at December 31, 2015 . The methodology was consistently applied for the respective years in determining t he discount rates for the other U.S. pension 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 ma rkets or local government bonds where developed markets are not as robust or are nonexistent. The projected benefit obligation for AIG’s Japan pension plans represents approximately 54 percent and 50 percent of the total projected benefit obligations for our non-U.S. pension plans at December 31, 2016 and 2015 , respectively. The weighted average discount rate of 0.47 percent and 0.99 percent at December 31, 2016 and 2015, respectively, was selected by reference to the Mercer Yield Curve (Japan) 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 provide for the benefit obligations of the plans over the long term, limit the risk of short-term funding shortfalls and 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, liquidity, diversification and concentration, and incorporates the risk/return p rofile applicable to each asset class. There were no shares of AIG Common Stock included in the U.S. and non-U.S. pension plans assets at December 31, 2016 or 2015 . U.S. Pension Plan The assets of the qualified plan are monitored by the AIG U.S. I nvestment C ommittee and actively managed by the inv estment managers, which involves allocating the plan’s assets among approved asset classes wit hin ranges as permitted by the strategic allocation. The long-term strategic asset allocation historically has been reviewed and revised approximately every three years. Beginning in 2016, the investment strategy focus is on de-risking the Plan via regular monitoring. This was implemented through liability driven investing and the adoption of the glide path approach , where the glide path defines the target allocation for the “Return-Seeking” portion of the portfolio (i.e., growth assets) based on the funde d ratio. Under this approach, the allocation to growth assets is reduced and the allocation to liability-hedging assets is increased as the Plan’s funded ratio increases in accordance with the defined glide p ath. The following table presents the asset allo cation percentage by major asset class for the U.S. qualified plan and the target allocation for 2017 based on the plan’s funded status at December 31, 2016 : Target Actual Actual At December 31, 2017 2016 2015 Asset class: Equity securities 45 % 43 % 35 % Fixed maturity securities 40 % 36 % 41 % Other investments 15 % 21 % 24 % Total 100 % 100 % 100 % The expected long-term rate of return for the plan was 7.0 percent and 7.25 percent for 2016 and 2015 , respectively . The expected rate of return is an aggregation of expected returns within each asset class category, weighted for the investment mix of the assets. 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 c onditions, 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 securiti es 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, 2017 2016 2015 Asset class: Equity securities 30 % 44 % 45 % Fixed maturity securities 50 % 36 % 35 % Other investments 18 % 14 % 13 % Cash and cash equivalents 2 % 6 % 7 % Total 100 % 100 % 100 % The assets of AIG’s Japan pension plans represent approximately 56 percent and 54 percent of total non-U.S. assets at December 31, 2016 and 2015 respectively. The expected long term rate of return was 2.61 percent and 1.71 percent, for 2016 and 2015 , 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 yea rs. The expected weighted average long-term rate of return for all our non-U.S. pension plans was 3.28 percent and 3.33 percent for the years ended December 31, 2016 and 2015 , 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 futu re 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 deter mining 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, 2016 Assets: Cash and cash equivalents $ 228 $ - $ - $ 228 $ 50 $ - $ - $ 50 Equity securities: U.S. (a) 838 1 - 839 - - - - International (b) 377 - - 377 298 58 - 356 Fixed maturity securities: U.S. investment grade (c) - 1,174 2 1,176 - - - - International investment grade (c) - - - - - 90 - 90 U.S. and international high yield (d) - 218 - 218 - 186 - 186 Mortgage and other asset-backed securities (e) - - - - - - - - Other fixed maturity securities - - - - - 13 - 13 Other investment types (g) : Futures - - - - - - - - Direct private equity (f) - - 24 24 - - - - Insurance contracts - 21 - 21 - - 108 108 Total $ 1,443 $ 1,414 $ 26 $ 2,883 $ 348 $ 347 $ 108 $ 803 At December 31, 2015 Assets: Cash and cash equivalents $ 239 $ - $ - $ 239 $ 49 $ - $ - $ 49 Equity securities: U.S. (a) 924 - - 924 35 - - 35 International (b) 262 1 - 263 248 67 - 315 Fixed maturity securities: U.S. investment grade (c) - 1,452 9 1,461 - - - - International investment grade (c) - - - - - 190 - 190 U.S. and international high yield (d) - 322 - 322 - 66 - 66 Mortgage and other asset-backed securities (e) - 7 - 7 - - - - Other fixed maturity securities - - - - - 12 - 12 Other investment types (g) : Futures 2 - - 2 - - - - Real Estate - - - - 11 - - 11 Direct private equity (f) - 5 28 33 - - - - Insurance contracts - 23 - 23 - - 95 95 Total $ 1,427 $ 1,810 $ 37 $ 3,274 $ 343 $ 335 $ 95 $ 773 (a) Includes passive and active U. S. Large Cap and Small Cap strategies, as well as mutual funds, and exchange traded funds. (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) Comprised of private capital financing including private debt and private equity securities. (g) Excludes investments that are measured at fair value using the NAV per share (or its e quivalent), which totaled $ 960 million and $ 1.1 billion at December 31, 2016 and 2015 , respectively. 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, 2016 . The U.S. pension plan holds a group annuity contract with U.S. Life, one of our subsidiaries, which totaled $ 21 million and $ 23 million at December 31, 2016 and 2015 , respectively. Changes in Level 3 Fair Value M easurements The following table pr esents 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, 2016 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 $ 1 $ 2 $ (10) $ - $ - $ - $ - $ 2 $ - Direct private equity 28 (4) 4 (4) - - - - 24 (4) Total $ 37 $ (3) $ 6 $ (14) $ - $ - $ - $ - $ 26 $ (4) Non-U.S. Plan Assets: Other fixed maturity securities $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Insurance contracts 95 12 1 - - - 2 (2) 108 - Total $ 95 $ 12 $ 1 $ - $ - $ - $ 2 $ (2) $ 108 $ - Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2015 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 $ 8 $ (1) $ 17 $ (15) $ - $ - $ - $ - $ 9 $ - Direct private equity 17 2 10 (1) - - - - 28 2 Total $ 25 $ 1 $ 27 $ (16) $ - $ - $ - $ - $ 37 $ 2 Non-U.S. Plan Assets: Other fixed maturity securities $ 17 $ (1) $ - $ - $ - $ - $ - $ (16) $ - $ - Insurance contracts 56 (7) 1 - - - 53 (8) 95 - Total $ 73 $ (8) $ 1 $ - $ - $ - $ 53 $ (24) $ 95 $ - 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 material transfers between Level 1 and Level 2 during the years ended December 31, 2016 and 2015 . 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 det ermination of fair value. During the year ended December 31, 2016 , we had no material transfers in or out of Level 3. Expected Cash Flows Funding for the qualified plan ranges from the minimum amount required by ERISA to the maximum amo unt 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 Co de. There are no minimum required cash contributions in 201 7 for the AIG Retirement Plan. The non-qualified and postretirement plan s ’ benefit payments are deductible when paid to participants. Our annual pension contribution in 2017 is expected to be approxi mately $ 70 million for our U.S. and non-U.S. pension plans. This estimate is subject to change, since contribution decisions are affected by various factors including our liquidity, market performance and management’s discretion. The exp ected 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 2017 $ 313 $ 38 $ 15 $ 1 2018 305 39 15 2 2019 318 44 15 2 2020 312 45 16 2 2021 308 47 16 2 2022-2026 1,477 275 82 13 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 matching contribution is 100 percent of the first six percent of a participant’s contributions, subject to the IRS - imposed limitations . Effective January 1, 2016, participants in the AIG Incentive Savings Plan receive an additional fully vested, non-elective, non-d iscretionary contribution equal to three percent of the participant’s annual base compensation for the plan year, paid each pay period regardless of whether the participant currently contributes to the plan, and subject to the IRS-imposed limitations. Our pre-tax expenses associated with these plans were $ 236 million, $ 166 million and $ 156 million in 2016 , 2015 and 2014 , respectively . |
OWNERSHIP
OWNERSHIP | 12 Months Ended |
Dec. 31, 2016 | |
OWNERSHIP | |
OWNERSHIP | 22. Ownership A Schedule 13G/A filed on January 19 , 2017 reports aggregate ownership of 64,426,821 shares, or approximately 6.5 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2016 , by Blackrock, Inc . and various subsidiaries there of. A Schedule 13G filed on February 13, 2017 reports aggregate ownership of 77,926,159 shares, or approximately 7.8 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2016, by Capital Research Global Investors, a division of Capital Research and Man agement Company. A Schedule 13G/A filed on February 9 , 2017 reports aggregate ownership of 62,619,185 shares, or approximately 6.3 percent (based on the AIG Common Stock outstanding) of AIG Common Stock as of December 31, 2016 , 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 i s different than beneficial ownership for Schedule 13G. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
INCOME TAXES | |
INCOME TAXES | 23. 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) 2016 2015 2014 U.S. $ 1,041 $ 1,950 $ 8,250 Foreign (1,115) 1,331 2,251 Total $ (74) $ 3,281 $ 10,501 The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations: Years Ended December 31, (in millions) 2016 2015 2014 Foreign and U.S. components of actual income tax expense: Foreign: Current $ 436 $ 391 $ 473 Deferred (121) (95) 154 U.S.: Current 140 429 115 Deferred (270) 334 2,185 Total $ 185 $ 1,059 $ 2,927 Our a ctual income tax (benefit) expense differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following: 2016 2015 2014 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 rate $ (159) $ (56) 35.0 % $ 3,281 $ 1,148 35.0 % $ 10,524 $ 3,683 35.0 % Adjustments: Tax exempt interest (178) 111.9 (195) (5.9) (236) (2.2) Uncertain tax positions 268 (168.6) 195 5.9 (81) (0.8) Reclassifications from accumulated other comprehensive income (132) 83.0 (127) (3.9) (61) (0.6) Dispositions of Subsidiaries 118 (74.2) - - - - Tax Attribute Restoration (164) 103.1 - - (182) (1.7) Non-controlling Interest (81) 50.9 - - - - Non-deductible transfer pricing charges 102 (64.2) 97 3.0 86 0.8 Dividends received deduction (75) 47.2 (72) (2.2) (62) (0.6) Effect of foreign operations 234 (147.2) (58) (1.8) (68) (0.6) State income taxes 23 (14.5) 34 1.0 39 0.4 Other 13 (8.2) (73) (2.2) (2) - Effect of discontinued operations 35 (22.0) - - 65 0.6 Valuation allowance: Continuing operations 83 (52.2) 110 3.4 (181) (1.7) Consolidated total amounts (159) 190 (119.5) 3,281 1,059 32.3 10,524 3,000 28.5 Amounts attributable to discontinued operations (85) 5 (5.9) - - - 23 73 317.4 Amounts attributable to continuing operations $ (74) $ 185 (250.0) % $ 3,281 $ 1,059 32.3 % $ 10,501 $ 2,927 27.9 % For the year ended December 31, 2016 , the effective tax rate on loss from continuing operations was not meaningful. The effective tax rate on loss from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax charges of $ 234 million associated wit h effect of foreign operations, $ 216 million of tax charges and related interest associated with increases in uncertain tax positions related to cross border f inancing transactions, $ 118 million related to disposition of subsidiaries, $ 102 million related to non-deductible transfer pricing charges, and $ 83 million related to increases in the deferred tax asset valuation allowances associated with U.S. federal and certain foreign jurisdictions, partially offset by tax benefits of $ 253 million of tax exempt income, $ 164 million associated with a portion of th e U.S. Life Insurance Companies capital loss carryforwards previously treated as expired that was restored and utilized, $ 116 million related to the impact of an agreement reached with the Internal Revenue Service (IRS) related to certain tax issues under audit, and $ 132 million of reclassifications from accumulated other comprehensive income to income from continuing operations related t o the disposal of available for sale securities. Effect of foreign operations is primarily related to foreign exchange losses incurred by our foreign subsidiaries related to the weakening of the British pound following the Brexit vote taxed at a statutory tax rate lower than 35 percent. For the year ended December 31, 2016 , our repatriation assumptions with respect to certain European operations remain unchanged and related foreign earnings continue to be indefinitely reinvested. Our repatriation assumptions related to certain operations in Canada, South Africa and Asia Pacific region have changed and related foreign earnings are now considered to be indefinitely reinvested. These earnings relate to ongoing operations and have been reinvested in active non-U.S. business operations. Further, we do not intend to repatriate these earnings to fund U.S. operations. As a result, U.S. deferred tax es have not been provided on $ 2 billion of accumulated earnings, including accumulated other comprehensive income, of these non-U.S. affiliates. Potential U.S. income tax liabilities related to such earnings would be offset, in whole or in part, by allowable foreign tax credits resulting from foreign taxes paid to foreign jurisdi ctions in which such operations are located. As a result, we currently believe that any incremental U.S. income tax liabilities relating to indefinitely reinvested foreign earnings would not be significant. Deferred taxes have been provided on earnings of non-U.S. affiliates whose earnings are not indefinitely reinvested. For the year ended December 31, 2015 , the effective tax rate on income from continuing operations was 32.3 percent. The effective tax r ate on income from continuing operations differs from the statutory tax rate of 35 percent primarily due to tax benefits of $ 195 million associated with tax exempt interest income, $ 127 million related to reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities, $ 58 million associated with the effect of for eign operations, and $ 109 million related to the partial completion of the IRS examination covering tax year 2006, partially offset by $ 324 million of tax charges and related interest associated with increases in uncertain tax positions related to cross border financing transactions, and $ 110 million related to increases in the deferred tax asset valuation allowances associated with certain foreign jurisdictions. For the year ended Decembe r 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 car ryforward valuation allowance, $ 182 million of income excludible from gross income related to the global resolution of certain residential mortgage-related disputes and $ 68 mi llion associated with the effect of foreign operations. The following table presents the components of the net deferred tax asset s (liabilities) : December 31, (in millions) 2016 2015 Deferred tax assets: Losses and tax credit carryforwards $ 16,448 $ 18,680 Basis differences on investments 4,985 4,886 Life policy reserves 3,040 353 Accruals not currently deductible, and other 1,128 1,003 Investments in foreign subsidiaries 103 - Loss reserve discount 1,151 1,021 Loan loss and other reserves 39 8 Unearned premium reserve reduction 924 1,603 Flight equipment, fixed assets and intangible assets 478 129 Other 710 577 Employee benefits 1,171 1,286 Total deferred tax assets 30,177 29,546 Deferred tax liabilities: Investments in foreign subsidiaries - (33) Deferred policy acquisition costs (3,790) (3,467) Unrealized gains related to available for sale debt securities (2,844) (3,077) Total deferred tax liabilities (6,634) (6,577) Net deferred tax assets before valuation allowance 23,543 22,969 Valuation allowance (2,831) (3,012) Net deferred tax assets (liabilities) $ 20,712 $ 19,957 The following table presents our U.S. consolidated income tax group tax losses and credits carryforwards as of December 31, 2016 . December 31, 2016 Tax Expiration (in millions) Gross Effected Periods Net operating loss carryforwards $ 34,618 $ 12,116 2028 - 2035 Foreign tax credit carryforwards 4,917 2018 - 2023 Other carryforwards 737 Various Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis 17,770 Unrecognized tax benefit (2,903) Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S. GAAP basis * $ 14,867 * Includes other carryforwards, e.g. general business credits, of $ 96 million on a U.S. GAAP basis. We have U.S. federal consolidated net operating loss and tax credit carryforwards of approximately $ 14.9 billion. The carryforward periods for our foreign tax credits begin to expire in 201 9. As detailed in the Assessment of Deferred Tax Asset Valuation Allowance section of this footnote, we determined th at it is more likely than not that our U.S. federal consolidated tax attribute carryforwards will be realized prior to their expiration . Assessment of Deferred Tax Asset Valuation Allowance The evaluation of the recoverability of our 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 the deferred tax asset requires us to consider all available evidence, including: the nature, freq uency, 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 period 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 tha t would be implemented, if necessary, to protect against the loss of the deferred tax asset. In performing our assessment of the recoverability of the deferred tax asset under this framework, we consider tax laws governing the utilization of the net operat ing loss, capital loss and foreign tax credit carryforwards in each applicable jurisdiction. Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards, even though the carr yforward period for the foreign tax credit is shorter than for the net operating loss. Our U.S. federal consolidated income tax group includes both life companies and non-life companies. While the U.S. taxable income of our non-life companies can be offs et by the net operating loss carryforwards, only a portion (no more than 35 percent) of the U.S. taxable income of our life companies can be offset by those net operating loss carryforwards. The remaining tax liability of our life companies can be offset by the foreign tax credit carryforwards. Accordingly, we utilize both the net operating loss and foreign tax credit carryforwards concurrently which enables us to realize our tax attributes prior to expiration. As of December 31, 2016 , based on all available evidence, it is more likely than not that the U.S. net operating loss and foreign tax credit carryforwards will be utilized prior to expiration and, thus, no valuation allowance has been established. Estimates of future taxable income, inclu ding income generated from prudent and feasible actions and tax planning strategies could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period. For the year ended December 31, 2016 , recent changes in market conditions, including inte rest rate fluct uations , impacted the unrealized tax gains and losses in the U.S. Life Insurance Companies’ available for sale securities por tfolio, resulting in a decrease to the net deferred tax asset related to net unrealized tax capital losses . As a result, for the ye ar ended December 31, 2016 , we released $ 682 m illion of valuation allowance associated with the unrealized tax losses in th e U.S. Life Insurance Companies, all of which was allocated to other comprehen sive income. For both the three-month period and the year ended December 31, 2016 , recent changes in market conditions and sales of securities that resulted in the reclassification of gains into continuing operations , impacted the unrealized ta x gains and losses in the non-l ife c ompanies’ available for sale securities portfolio, resulting in an increase to the net deferred tax asset related to net unrealized tax capital losses . As a result , we established $ 260 m illion of valuation allowance associated with the unrealized tax losses in the non-l ife c ompanies’ available for sale securities portfolio, all of which was recognized in other comprehensive income. As of December 31, 2016 , based on all available evidence, we concluded that a valuation allowance of $ 728 million should remain on a portion of the deferred tax asset related to unrealized losses that are not more-likely-than-not to be realized. During the year ended December 31, 2016 , we recognized a net increase of $ 69 million in our deferred tax asset valuation allowance associated with certain foreign jurisdictions, primarily attributable t o current year losses, changes in projections of taxable income and changes in tax law. During the year ended December 31, 2016 , we recognized a net increase of $ 170 million in our deferred tax asset valuation allowance associated with certain state jurisdictions, primarily attributable to current year losses, legislative state tax law changes and changes to state effective tax rates. The following table presents the net deferred tax assets ( liabilities) at December 31, 2016 and 2015 on a U.S. GAAP basis: December 31, (in millions) 2016 2015 Net U.S. consolidated return group deferred tax assets $ 24,134 $ 24,134 Net deferred tax assets (liabilities) in accumulated other comprehensive income (2,384) (2,806) Valuation allowance (874) (1,281) Subtotal 20,876 20,047 Net foreign, state and local deferred tax assets 2,413 2,078 Valuation allowance (1,957) (1,731) Subtotal 456 347 Subtotal - Net U.S., foreign, state and local deferred tax assets 21,332 20,394 Net foreign, state and local deferred tax liabilities (620) (437) Total AIG net deferred tax assets (liabilities) $ 20,712 $ 19,957 Deferred Tax Asset Valuation Allowance of U.S. Consolidated FEDERAL Income Tax Group At December 31, 2016 and 2015 , our U.S. consolidated income tax group had net deferred tax assets after valuation allowance of $ 20.9 billion and $ 20.0 billion, respectively. At December 31, 2016 and 2015 , our U.S. consolidated income tax group had valuation allowances of $ 874 m illion an d $ 1.3 billion, respectively. Deferred Tax Liability — Foreign, State and Local At December 31, 2016 and 2015 , we had net deferred tax liabilities of $ 164 million and $ 90 million, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. At December 31, 2016 and 2015 , we had deferred tax asset valuation all owances of $ 2 billion and $ 1.7 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 i nability 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. Income earned by subsidiar ies 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 u nder examination for the tax years 2000 through 2010 . 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 cove red by the Notice, and the IRS ha s administratively chall enged the later perio ds. The IRS has also administratively challenged other cross-border transactions in later years . 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 (Southern District) seeking a refund of approximately $ 306 million in taxes, interest and pen alties paid with respect to the 1997 taxable year. We allege that the IRS improperly disallowed foreign tax credits a nd 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 August 1, 2012, we filed a mo tion for partial summary judgment related to the disallowance of foreign tax credits associated with cross border financing transactions in the Southern District of New York. The Southern District of New York denied our summary judgment motion and upon AIG ’s appeal, the U.S. Court of Appeals for the Second Circuit (the Second Circuit) affirmed the denial. AIG’s petition for certiorari to the U.S. Supreme Court from the decision of the Second Circuit was denied on March 7, 2016. As a result, the case has be en remanded back to the Southern District of New York for a jury trial. We will vigorously defend our position and continue to believe that we have adequate reserves for any liability that could result from these government actions. We continue to monitor legal and other developments in this area, including recent decisions affecting other taxpayers, and evaluate their effect, if any, on our position . 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) 2016 2015 2014 Gross unrecognized tax benefits, beginning of year $ 4,331 $ 4,395 $ 4,340 Increases in tax positions for prior years 235 162 91 Decreases in tax positions for prior years (39) (209) (60) Increases in tax positions for current year 3 - 10 Lapse in statute of limitations - (4) (6) Settlements - (13) - Activity of discontinued operations - - 20 Gross unrecognized tax benefits, end of year $ 4,530 $ 4,331 $ 4,395 At December 31, 2016 , 2015 and 2014 , our unrecognized tax benefits, excluding interest and penalties, were $ 4.5 billion, $ 4.3 billion and $ 4.4 billion, respectively. The activity includes increases for amounts associated with cross border financing transactions partially offset by certain benefits realized due to an agreement reache d with the Internal Revenue Service (IRS) related to certain tax issues under audit . At December 31, 2016 , 2015 and 2014 , our unrecognized tax benefits related to tax positions that, if recognized, would not affect the effect ive tax rate because they relate to such factors as the timing, rather than the permissibility, of the deduction were $ 0.1 billion, $ 0.1 billion and $ 0.3 billion, respectively. Accordingly, at December 31, 2016 , 2015 and 2014 , the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax ra te were $ 4.4 billion, $ 4.2 billion and $ 4.1 billion, respectively. Interest and penalties related to unrecog nized tax benefits are recog nized in income tax expense. At December 31, 2016 , 2015 , and 2014 , we had accrued liabilities of $ 1.2 billion, $ 1.2 billion, and $ 1.1 billion , respectively, for the payment of interest (net of the federal benefit) and penalties. For the years ended December 31, 2016 , 2015 , and 2014 , we accrued expense of $ 26 million, $ 156 million and $ 21 million, respectively, for the pay ment of interest (net of the federal benefit) and penalties. The reduction in interest accrued during 2016 as compared to 2015 is primarily related to benefits associated with an agreement reached with the IRS related to certain tax issues under audit, partially o ffset by an increase associated with cross border financing transactions. We regularly evaluate adjustments proposed by taxing authorities. At December 31, 2016 , such proposed adjustments would not have resulted in a material change to our cons olidated 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 benefi ts 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 jurisdi ctions: At December 31, 2016 Open Tax Years Major Tax Jurisdiction United States 2000-2015 Australia 2012-2015 France 2014-2015 Japan 2010-2015 Korea 2011-2015 Singapore 2012-2015 United Kingdom 2013-2015 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 24. 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) 2016 2015 2016 2015 2016 2015 2016 2015 Total revenues $ 11,779 $ 15,975 $ 14,724 $ 15,699 $ 12,854 $ 12,822 $ 13,010 $ 13,831 Income (loss) from continuing operations before income taxes * (214) 3,776 2,858 2,552 737 (115) (3,455) (2,932) Income (loss) from discontinued operations, net of income taxes (47) 1 (10) 16 3 (17) (36) - Net income (loss) (203) 2,477 1,924 1,791 436 (197) (2,506) (1,849) Net income (loss) from continuing operations attributable to noncontrolling interests (20) 9 11 (9) (26) 34 535 (8) Net income (loss) attributable to AIG * $ (183) $ 2,468 $ 1,913 $ 1,800 $ 462 $ (231) $ (3,041) $ (1,841) Income (loss) per common share attributable to AIG: Basic: Income (loss) from continuing operations $ (0.12) $ 1.81 $ 1.73 $ 1.34 $ 0.43 $ (0.17) $ (2.93) $ (1.50) Income (loss) from discontinued operations $ (0.04) $ - $ (0.01) $ 0.01 $ - $ (0.01) $ (0.03) $ - Diluted: Income (loss) from continuing operations $ (0.12) $ 1.78 $ 1.69 $ 1.31 $ 0.42 $ (0.17) $ (2.93) $ (1.50) Income (loss) from discontinued operations $ (0.04) $ - $ (0.01) $ 0.01 $ - $ (0.01) $ (0.03) $ - Weighted average shares outstanding: Basic 1,156,548,459 1,365,951,690 1,113,587,927 1,329,157,366 1,071,295,892 1,279,072,748 1,023,886,592 1,226,880,632 Diluted 1,156,548,459 1,386,263,549 1,140,045,973 1,365,390,431 1,102,400,770 1,279,072,748 1,023,886,592 1,226,880,632 Noteworthy quarterly items - income (expense): Other-than-temporary impairments (204) (128) (108) (164) (102) (273) (145) (106) Net (gain) loss on sale of divested businesses 2 6 (225) 1 (128) 3 (194) 1 Federal and foreign valuation allowance for deferred tax assets (37) 93 35 (40) (2) 8 87 49 Net gain (loss) on extinguishment of debt (83) (68) (7) (342) 14 (346) 2 - Reserve strengthening charges (66) 24 7 317 273 191 5,574 3,587 Restructuring and other costs 188 - 90 - 210 274 206 222 * For the three months ended December 31, 2016, we recorded out of period adjustments related to prior periods that increased Net loss attributable to AIG by $154 million, increased AIG’s Loss from continuing operations before income taxes by $12 million and decreased pre-tax operating income by $1 million. The out of period adjustments are primarily related to income tax liabilities and ceded loss adjustment expenses. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG for the three-month periods ended September 30, 2016, June 30, 2016 and March 31, 2016 would have decreased by $65 million, increased by $66 million and increased by $19 million, respectively. Net incom e attributable to AIG for the three-month periods ended December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015 would have decreased by $88 million, increased by $22 million, increased by $5 million, and decreased by $5 million, respectivel y. For the three months ended December 31, 2015, we recorded out of period adjustments related to prior periods that decreased Net income attributable to AIG by $193 million, decreased AIG’s Income from continuing operations before income taxes by $308 m illion and decreased pre-tax operating income by $122 million. The out of period adjustments primarily related to impairments of Other invested assets and changes in loss reserves and income tax liabilities. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG for the three-month periods ended September 30, 2015, June 30, 2015 and March 31, 2015 would have decreased by $36 million, increased by $15 million and decreased b y $16 million, respectively. |
INFORMATION PROVIDED IN CONNECT
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 12 Months Ended |
Dec. 31, 2016 | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 25. Information Provided i n Connection w ith 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 December 31, 2016 Assets: Short-term investments $ 4,424 $ - $ 13,218 $ (5,340) $ 12,302 Other investments (a) 7,154 - 308,719 - 315,873 Total investments 11,578 - 321,937 (5,340) 328,175 Cash 2 34 1,832 - 1,868 Loans to subsidiaries (b) 34,692 - 576 (35,268) - Investment in consolidated subsidiaries (b) 42,582 27,309 - (69,891) - Other assets, including deferred income taxes 24,099 239 140,743 (4,059) 161,022 Assets held for sale - - 7,199 - 7,199 Total assets $ 112,953 $ 27,582 $ 472,287 $ (114,558) $ 498,264 Liabilities: Insurance liabilities $ - $ - $ 275,120 $ - $ 275,120 Long-term debt 21,405 642 8,865 - 30,912 Other liabilities, including intercompany balances (a) 14,671 194 103,975 (9,572) 109,268 Loans from subsidiaries (b) 577 - 34,691 (35,268) - Liabilities held for sale - - 6,106 - 6,106 Total liabilities 36,653 836 428,757 (44,840) 421,406 Total AIG shareholders’ equity 76,300 26,746 42,972 (69,718) 76,300 Non-redeemable noncontrolling interests - - 558 - 558 Total equity 76,300 26,746 43,530 (69,718) 76,858 Total liabilities and equity $ 112,953 $ 27,582 $ 472,287 $ (114,558) $ 498,264 December 31, 2015 Assets: Short-term investments $ 4,042 $ - $ 9,637 $ (3,547) $ 10,132 Other investments (a) 7,425 - 320,797 - 328,222 Total investments 11,467 - 330,434 (3,547) 338,354 Cash 34 116 1,479 - 1,629 Loans to subsidiaries (b) 35,927 - 578 (36,505) - Investment in consolidated subsidiaries (b) 51,151 30,239 - (81,390) - Other assets, including deferred income taxes 23,299 258 135,690 (2,388) 156,859 Total assets $ 121,878 $ 30,613 $ 468,181 $ (123,830) $ 496,842 Liabilities: Insurance liabilities $ - $ - $ 271,645 $ - $ 271,645 Long-term debt 19,777 704 8,768 - 29,249 Other liabilities, including intercompany balances (a) 11,869 201 99,777 (6,109) 105,738 Loans from subsidiaries (b) 574 3 35,928 (36,505) - Total liabilities 32,220 908 416,118 (42,614) 406,632 Total AIG shareholders’ equity 89,658 29,705 51,511 (81,216) 89,658 Non-redeemable noncontrolling interests - - 552 - 552 Total equity 89,658 29,705 52,063 (81,216) 90,210 Total liabilities and equity $ 121,878 $ 30,613 $ 468,181 $ (123,830) $ 496,842 (a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment. (b) Eliminated in consolidation. 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, 2016 Revenues: Equity in earnings of consolidated subsidiaries * $ (1,269) $ (197) $ - $ 1,466 $ - Other income 516 5 52,875 (1,029) 52,367 Total revenues (753) (192) 52,875 437 52,367 Expenses: Interest expense 988 51 227 (6) 1,260 Loss on extinguishment of debt 77 - (3) - 74 Other expenses 295 16 51,819 (1,023) 51,107 Total expenses 1,360 67 52,043 (1,029) 52,441 Income (loss) from continuing operations before income tax expense (benefit) (2,113) (259) 832 1,466 (74) Income tax expense (benefit) (1,301) (21) 1,507 - 185 Income (loss) from continuing operations (812) (238) (675) 1,466 (259) Loss from discontinued operations, net of income taxes (37) - (53) - (90) Net income (loss) (849) (238) (728) 1,466 (349) Less: Net income from continuing operations attributable to noncontrolling interests - - 500 - 500 Net income (loss) attributable to AIG $ (849) $ (238) $ (1,228) $ 1,466 $ (849) Year Ended December 31, 2015 Revenues: Equity in earnings of consolidated subsidiaries * $ 3,954 $ 1,936 $ - $ (5,890) $ - Other income 88 - 58,953 (714) 58,327 Total revenues 4,042 1,936 58,953 (6,604) 58,327 Expenses: Interest expense 1,049 58 302 (128) 1,281 Loss on extinguishment of debt 703 - 46 7 756 Other expenses 1,178 44 52,374 (587) 53,009 Total expenses 2,930 102 52,722 (708) 55,046 Income (loss) from continuing operations before income tax expense (benefit) 1,112 1,834 6,231 (5,896) 3,281 Income tax expense (benefit) (1,086) (73) 2,218 - 1,059 Income (loss) from continuing operations 2,198 1,907 4,013 (5,896) 2,222 Income (loss) from discontinued operations, net of income taxes (2) - 2 - - Net income (loss) 2,196 1,907 4,015 (5,896) 2,222 Less: Net income (loss) from continuing operations attributable to noncontrolling interests - - 26 - 26 Net income (loss) attributable to AIG $ 2,196 $ 1,907 $ 3,989 $ (5,896) $ 2,196 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: Other 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 * 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, 2016 Net income (loss) $ (849) $ (238) $ (728) $ 1,466 $ (349) Other comprehensive income (loss) 693 4,080 52,153 (56,233) 693 Comprehensive income (loss) (156) 3,842 51,425 (54,767) 344 Total comprehensive income attributable to noncontrolling interests - - 500 - 500 Comprehensive income (loss) attributable to AIG $ (156) $ 3,842 $ 50,925 $ (54,767) $ (156) Year Ended December 31, 2015 Net income (loss) $ 2,196 $ 1,907 $ 4,015 $ (5,896) $ 2,222 Other comprehensive income (loss) (8,080) 2,320 54,757 (57,083) (8,086) Comprehensive income (loss) (5,884) 4,227 58,772 (62,979) (5,864) Total comprehensive income attributable to noncontrolling interests - - 20 - 20 Comprehensive income (loss) attributable to AIG $ (5,884) $ 4,227 $ 58,752 $ (62,979) $ (5,884) 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 Condensed Consoli dat ing Statements of Cash Flows American International Reclassifications Group, Inc. Other and Consolidated (in millions) (As Guarantor) AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2016 Net cash (used in) provided by operating activities $ 2,112 $ 1,707 $ 2,515 $ (3,951) $ 2,383 Cash flows from investing activities: Sales of investments 5,769 - 81,560 (11,685) 75,644 Sales of divested businesses, net 2,160 - 649 - 2,809 Purchase of investments (1,002) - (80,668) 11,685 (69,985) Loans to subsidiaries – net 1,525 - (3) (1,522) - Contributions from (to) subsidiaries - net 1,637 - - (1,637) - Net change in restricted cash - - 385 - 385 Net change in short-term investments (789) - (2,300) - (3,089) Other, net (141) - (879) - (1,020) Net cash (used in) provided by investing activities 9,159 - (1,256) (3,159) 4,744 Cash flows from financing activities: Issuance of long-term debt 3,831 - 2,123 - 5,954 Repayments of long-term debt (1,996) (63) (2,023) - (4,082) Purchase of Common Stock (11,460) - - - (11,460) Intercompany loans - net 3 (3) (1,522) 1,522 - Cash dividends paid (1,372) (1,723) (2,228) 3,951 (1,372) Other, net (309) - 2,799 1,637 4,127 Net cash (used in) financing activities (11,303) (1,789) (851) 7,110 (6,833) Effect of exchange rate changes on cash - - 52 - 52 Change in cash (32) (82) 460 - 346 Cash at beginning of year 34 116 1,479 - 1,629 Change in cash of businesses held for sale - - (107) - (107) Cash at end of year $ 2 $ 34 $ 1,832 $ - $ 1,868 Year Ended December 31, 2015 Net cash (used in) provided by operating activities $ 4,443 $ 2,314 $ 1,112 $ (4,992) $ 2,877 Cash flows from investing activities: Sales of investments 7,767 - 69,726 (4,877) 72,616 Purchase of investments (1,881) - (68,261) 4,877 (65,265) Loans to subsidiaries – net (83) - 367 (284) - Contributions from (to) subsidiaries - net 565 - - (565) - Net change in restricted cash - - 1,457 - 1,457 Net change in short-term investments 2,300 - (1,137) - 1,163 Other, net (175) - (1,334) - (1,509) Net cash (used in) provided by investing activities 8,493 - 818 (849) 8,462 Cash flows from financing activities: Issuance of long-term debt 5,540 - 1,327 - 6,867 Repayments of long-term debt (6,504) (114) (3,187) - (9,805) Intercompany loans - net (201) 3 (86) 284 - Purchase of common stock (10,691) - - - (10,691) Cash dividends paid (1,028) (2,178) (2,814) 4,992 (1,028) Other, net (44) - 2,707 565 3,228 Net cash (used in) provided by financing activities (12,928) (2,289) (2,053) 5,841 (11,429) Effect of exchange rate changes on cash - - (39) - (39) Change in cash 8 25 (162) - (129) Cash at beginning of year 26 91 1,641 - 1,758 Change in cash of businesses held for sale - - - - - Cash at end of year $ 34 $ 116 $ 1,479 $ - $ 1,629 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 (used in) 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) Intercompany loans - net 110 (280) (445) 615 - Purchase of common stock (4,902) - - - (4,902) Cash dividends paid to shareholders (712) (5,358) (14,085) 19,443 (712) Other, net (28) - (4,821) 148 (4,701) Net cash (used in) provided by 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 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, 2016 for: Interest: Third party $ (975) $ (52) $ (304) $ - $ (1,331) Intercompany 2 - (2) - - Taxes: Income tax authorities $ (15) $ - $ (478) $ - $ (493) Intercompany 479 - (479) - - Cash (paid) received during the year ended December 31, 2015 for: Interest: Third party $ (1,030) $ (59) $ (279) $ - $ (1,368) Intercompany - - - - - Taxes: Income tax authorities $ (11) $ - $ (500) $ - $ (511) Intercompany 829 - (829) - - 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) - - American International Group, Inc. (As Guarantor) supplementary disclosure of non-cash activities: Years Ended December 31, (in millions) 2016 2015 2014 Intercompany non-cash financing and investing activities: Capital contributions $ 3,245 $ 494 $ 2,457 Dividends received in the form of securities 5,234 2,326 3,088 Return of capital * - - 4,836 Fixed maturity securities received in exchange for equity securities 440 - - Non-cash financing/investing activities: Non-cash consideration received from sale of shares of AerCap - 500 - Non-cash consideration received from sale of UGC 1,101 - - * Includes $ 4.8 billion return of capital from AIG Capital Corporation related to the sale of ILFC. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 26. Subsequent Events Dividends Declared and Share Repurchase Authorization On February 14, 2017, our Board of Directors d eclared a cash dividend on AIG Common Stock of $0. 32 per share, pay able on March 29, 2017 to shareholders of record on March 15, 2017 . On February 14, 2017, our Board of Directors a uthorized an additional increase to its previous repurchase authorization of AIG Common Stock of $3.5 billion , resulting in an aggregate remaining authorization on such date of approximately $ 4.7 billion. reinsurance agreement On January 20, 2017, we announced that we have entered into an adverse development reinsurance agreement with NICO, a subsidiary of Berkshire Hathaway Inc., under which we ceded to NICO 80 percent of reserve risk above an attachment point on substantially all of our U.S. Commercial long-tail exposures for accident years 2015 and prior. Under this agreement, we ceded to NICO 80 percent of net paid losses on subject business on or after January 1, 2016 in excess of $25 billi on of net paid losses, up to an aggregate limit of $25 billion. At NICO’s 80 percent share, NICO’s limit of liability under the contract is $20 billion. We will account for this transaction as retroactive reinsurance. The consideration for this agreement is $9.8 billion plus interest at 4 percent per annum from January 1, 2016 to date of payment, which was paid in full as of February 17, 2017. The consideration paid to NICO will be placed into a collateral trust account as security for NICO’s claim payment obligations, and Berkshire Hathaway Inc. has provided a parental guarantee to secure NICO’s obligations under the agreement. |
Schedule I Summary of Investmen
Schedule I Summary of Investments - Other than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 which shown in (in millions) Cost (a) Fair Value the Balance Sheet Fixed maturities: U.S. government and government sponsored entities $ 4,809 $ 4,932 $ 4,932 Obligations of states, municipalities and political subdivisions 24,026 24,772 24,772 Non-U.S. governments 14,068 14,585 14,585 Public utilities 17,094 18,018 18,018 All other corporate debt securities 111,326 115,934 115,934 Mortgage-backed, asset-backed and collateralized 74,916 77,294 77,294 Total fixed maturity securities 246,239 255,535 255,535 Equity securities and mutual funds: Common stock: Public utilities 3 4 4 Banks, trust and insurance companies 900 1,108 1,108 Industrial, miscellaneous and all other 245 394 394 Total common stock 1,148 1,506 1,506 Preferred stock 748 752 752 Mutual funds 283 302 302 Total equity securities and mutual funds 2,179 2,560 2,560 Mortgage and other loans receivable, net of allowance 33,240 33,747 33,240 Other invested assets 24,349 24,073 24,538 Short-term investments, at cost (approximates fair value) 12,302 12,302 12,302 Derivative assets (b) 1,809 1,809 1,809 Total investments $ 320,118 $ 330,026 $ 329,984 (a) Original cost of equity securities and fixed maturities is reduced by other-than-temporary impairment charges, and, as to fixed maturit y securities , reduced by repayments and adjusted for amortization of premiums or accr etion of discounts. (b) The balance is reported in Other Assets. |
Schedule II Condensed Financial
Schedule II Condensed Financial Information of Registrant - Parent Company Only | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Assets: Short-term investments $ 4,424 $ 4,042 Other investments 7,154 7,425 Total investments 11,578 11,467 Cash 2 34 Loans to subsidiaries * 34,692 35,927 Due from affiliates - net * 3,460 1,967 Intercompany tax receivable * 5,129 3,234 Deferred income taxes 15,169 17,564 Investments in consolidated subsidiaries * 42,582 51,151 Other assets 341 534 Total assets $ 112,953 $ 121,878 Liabilities: Due to affiliate * $ 6,083 $ 4,059 Intercompany tax payable * 4,152 3,916 Deferred tax liabilities - 9 Notes and bonds payable 19,432 17,047 Junior subordinated debt 843 1,327 MIP notes payable 1,099 1,372 Series AIGFP matched notes and bonds payable 31 31 Loans from subsidiaries * 577 574 Other liabilities (includes intercompany derivative liabilities of $419 in 2016 and $144 in 2015) 4,436 3,885 Total liabilities 36,653 32,220 AIG Shareholders’ equity: Common stock 4,766 4,766 Treasury stock (41,471) (30,098) Additional paid-in capital 81,064 81,510 Retained earnings 28,711 30,943 Accumulated other comprehensive income 3,230 2,537 Total AIG shareholders’ equity 76,300 89,658 Total liabilities and equity $ 112,953 $ 121,878 * 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) 2016 2015 2014 Revenues: Equity in undistributed net income (loss) of consolidated subsidiaries (a) $ (8,633) $ (2,929) $ (5,573) Dividend income from consolidated subsidiaries (a) 7,364 6,883 15,023 Interest income 411 342 305 Net realized capital gains (losses) 2 (587) 8 Other income 103 333 1,345 Expenses: Interest expense 988 1,049 1,507 Net loss on extinguishment of debt 77 703 2,248 Net (gain) loss on sale of divested businesses (b) (690) 11 (42) Other expenses 985 1,167 1,588 Income (loss) from continuing operations before income tax expense (benefit) (2,113) 1,112 5,807 Income tax benefit (1,301) (1,086) (1,735) Net income (loss) (812) 2,198 7,542 Loss from discontinued operations (37) (2) (13) Net income (loss) attributable to AIG Parent Company $ (849) $ 2,196 $ 7,529 (a) Eliminated in consolidation. (b) Primarily includes pre-tax gain of $697 million on the sale of United Guaranty Corporation (UGC) on December 31,2016 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) 2016 2015 2014 Net income $ (849) $ 2,196 $ 7,529 Other comprehensive income 693 (8,080) 4,257 Total comprehensive income attributable to AIG $ (156) $ (5,884) $ 11,786 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) 2016 2015 2014 Net cash provided by operating activities $ 2,112 $ 4,443 $ 9,316 Cash flows from investing activities: Sales and maturities of investments 5,598 7,609 2,996 Sales of divested businesses 2,160 - - Purchase of investments (1,002) (1,881) (1,051) Net change in restricted cash - - (501) Net change in short-term investments (789) 2,300 5,792 Contributions to subsidiaries - net 1,637 565 (148) Mortgage and other loan receivables - originations and purchases (85) - - Payments received on mortgages and other loan receivables 171 158 40 Loans to subsidiaries - net 1,525 (83) 446 Other, net (56) (175) (141) Net cash provided by investing activities 9,159 8,493 7,433 Cash flows from financing activities: Issuance of long-term debt 3,831 5,540 3,247 Repayment of long-term debt (1,996) (6,504) (14,468) Cash dividends paid (1,372) (1,028) (712) Loans from subsidiaries - net 3 (201) 110 Purchase of Common Stock (11,460) (10,691) (4,902) Other, net (309) (44) (28) Net cash used in financing activities (11,303) (12,928) (16,753) Change in cash (32) 8 (4) Cash at beginning of year 34 26 30 Cash at end of year $ 2 $ 34 $ 26 Supplementary disclosure of cash flow information: Years Ended December 31, (in millions) 2016 2015 2014 Cash (paid) received during the period for: Interest: Third party $ (975) $ (1,030) $ (1,624) Intercompany 2 - 5 Taxes: Income tax authorities (15) (11) (18) Intercompany 479 829 1,172 Intercompany non-cash financing and investing activities: Capital contributions 3,245 494 2,457 Return of capital * - - 4,836 Dividends received in the form of securities 5,234 2,326 3,088 Fixed maturity securities received in exchange for equity securities 440 - - Non-cash financing/investing activities Non-cash consideration received from sale of shares of AerCap - 500 - Non-cash consideration received from sale of UGC 1,101 - - 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 2016 Annual Report on Form 10-K for the year ended December 31, 2016 (Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 22, 2017. 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 and deferred taxes related to tax attribute carryforwards of AIG’s U.S. consolidated income tax group. See Note 23 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 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 Insu
Schedule III Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2016 | |
Schedule III Supplementary Insurance Information | |
Schedule III Supplementary Insurance Information | Supplementary Insurance Information Schedule III At December 31, 2016 and 2015 Liability for Unpaid Losses and Loss Deferred Adjustment Policy Policy Expenses, and Acquisition Future Policy Unearned Contract Segment (in millions) Costs Benefits Premiums Claims 2016 Property Casualty Insurance Companies $ 2,563 $ 71,812 $ 19,348 $ - Life Insurance Companies 8,466 41,384 - 836 Other (a) 13 6,085 286 11 $ 11,042 $ 119,281 $ 19,634 $ 847 2015 Property Casualty Insurance Companies $ 2,631 $ 69,213 $ 20,961 $ - Life Insurance Companies 8,467 42,893 - 851 Other (a) 17 6,421 357 11 $ 11,115 $ 118,527 $ 21,318 $ 862 For the years ended December 31, 2016, 2015 and 2014 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) 2016 Commercial Insurance $ 18,100 $ 3,268 $ 18,828 $ 2,049 $ 3,226 $ 16,928 Consumer Insurance 15,426 7,345 12,063 2,681 5,456 11,465 Other Operations (a) 2,783 539 1,900 (317) - 819 Legacy Operations 816 2,913 3,351 108 - 21 $ 37,125 $ 14,065 $ 36,142 $ 4,521 $ 8,682 $ 29,233 2015 Commercial Insurance $ 19,715 $ 3,421 $ 16,660 $ 2,349 $ 3,562 $ 20,616 Consumer Insurance 15,070 7,356 11,967 2,762 6,872 11,583 Other Operations (a) 3,455 348 2,845 23 - 668 Legacy Operations 1,170 2,928 3,604 102 - 199 $ 39,410 $ 14,053 $ 35,076 $ 5,236 $ 10,434 $ 33,066 2014 Commercial Insurance $ 20,407 $ 4,255 $ 14,226 $ 2,497 $ 3,692 $ 20,773 Consumer Insurance 15,791 7,924 12,055 2,655 6,797 12,408 Other Operations (a) 2,457 655 2,299 97 - 1,032 Legacy Operations 1,214 3,245 3,469 81 - 243 $ 39,869 $ 16,079 $ 32,049 $ 5,330 $ 10,489 $ 34,456 (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, 2016 | |
Schedule IV Reinsurance | |
Schedule IV Reinsurance | Reinsurance Schedule IV At December 31, 2016, 2015 and 2014 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 2016 Long-duration insurance in force $ 1,025,653 $ 174,363 $ 339 $ 851,629 - % Premiums: Property Casualty Insurance Companies $ 33,970 $ 7,561 $ 2,824 $ 29,233 9.7 % Life Insurance Companies 4,609 789 123 3,943 3.1 Other - - - - - Total $ 38,579 $ 8,350 $ 2,947 $ 33,176 8.9 % 2015 Long-duration insurance in force $ 1,051,571 $ 177,025 $ 372 $ 874,918 - % Premiums: Property Casualty Insurance Companies $ 37,698 $ 7,604 $ 2,972 $ 33,066 9.0 % Life Insurance Companies 5,233 756 7 4,484 0.2 Other - - - - - Total $ 42,931 $ 8,360 $ 2,979 $ 37,550 7.9 % 2014 Long-duration insurance in force $ 1,033,281 $ 180,178 $ 410 $ 853,513 - % Premiums: Property Casualty Insurance Companies $ 39,375 $ 8,318 $ 3,399 $ 34,456 9.9 % Life Insurance Companies 4,050 661 20 3,409 0.6 Other - - - - - Total $ 43,425 $ 8,979 $ 3,419 $ 37,865 9.0 % |
Schedule V Valuation and Qualif
Schedule V Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule V Valuation and Qualifying Accounts | Valuation and Qualifying Accounts Schedule V For the years ended December 31, 2016, 2015 and 2014 Additions Reclassified Balance, Charged to to Assets of Beginning Costs and Businesses Divested Other Balance, (in millions) of year Expenses Charge Offs Held for Sale Businesses Changes * End of year 2016 Allowance for mortgage and other loans receivable $ 308 $ (7) $ (15) $ - $ - $ 11 $ 297 Allowance for premiums and insurances balances receivable 333 26 (88) (2) (7) - 262 Allowance for reinsurance assets 272 (23) (34) (8) - - 207 Federal and foreign valuation allowance for deferred tax assets 3,012 83 - - - (264) 2,831 2015 Allowance for mortgage and other loans receivable $ 271 $ 58 $ (29) $ - $ 3 $ 5 $ 308 Allowance for premiums and insurances balances receivable 431 35 (120) - - (13) 333 Allowance for reinsurance assets 258 90 (67) - - (9) 272 Federal and foreign valuation allowance for deferred tax assets 1,739 110 - - - 1,163 3,012 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 * 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, 2016 | |
BASIS OF PRESENTATION | |
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: 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 (loss reserves) ; 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 policy acquisition costs for investment-oriented products; impairment charges, including other-than-temporary impairments on available f or sale securities, impairments on other invested assets, including investments in life settlements, and goodwill impairment; liability for legal contingencies; and fair value measurements of certain financial assets and liabilities. These accounting estim ates 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 condition, results of operations and cash flows c ould be materially affected. |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Held-for-Sale Classification | We report a business as held-for-sale when management has approved the sale 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. Assets and liabilities related to the businesses classified as held-for-sale are separately reported in our Consolidated Balance Sheets beginning in the period in which the business is classified as held-for-sale. At December 31, 2016 , the following businesses were reported as held-for-sale: United Guaranty Asia On August 15, 2016, we entered into a definitive agreement to sell our 100 percent inte rest in UGC and certain related affiliates to Arch. This transaction closed on December 31, 2016 and we received proceeds of approximately $3.3 billion, consisting of $2.2 billion of cash, and approximately $1.1 billion of newly issued Arch convertible non -voting common-equivalent preferred stock. We also received $261 million in pre-closing dividends from UGC in the fourth quarter of 2016. However, due to pending regulatory approvals, United Guaranty Asia was not included in the December 31, 2016 closing and $40 million of cash consideration was retained by Arch. The closing with respect to United Guaranty Asia is expected to occur during the first quarter of 2017, at which time AIG will receive the remaining consideration. Sale of Certain Insurance Subs idiary Operations to Fairfax On October 18, 2016, we entered into agreements to sell certain insurance operations to Fairfax Financial Holdings Limited (Fairfax). The agreements include the sale of our subsidiary operations in Argentina, Chile, Colombia, U ruguay and Venezuela, as well as insurance operations in Turkey. Fairfax will also acquire renewal rights for the portfolios of local business written by our operations in Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovakia, and assume certain of our operating assets and employees. Total cash consideration to us is expected to be approximately $240 million. The transactions are subject to obtaining the relevant regulatory approvals and other customary closing conditions. AIG Fuji Life Insurance On November 14, 2016, we entered into an agreement to sell AFLI to FWD Group, the insurance arm of Pacific Century Group. Consummation of the transaction is subject to customary closing conditions, including regulatory and other approvals. Total cash co nsideration to us is expected to be approximately $346 million. The sale resulted in a pr e- ta x loss of $467 m i ll i o n. |
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, 2016 or 2015 . 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 separ ate 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 Other Operations ). Investments in fixed maturity and equity securities are recorded on a trade-date basis. Premiums and discounts arising from the purc hase 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), rec ognized 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 updat ed 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 a re 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 ex pected 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 n effective level -yield basis. Subsequently, effecti ve 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 d ue to reasons other than interest rate changes. Other Invested Assets Carried at Fair Value Certain hedge funds, private equity funds, 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 Other Operations, for which such changes are reported in Other income. Other investments in hedge funds, private equity funds 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 Accumulated other comprehensive income on such investments was $ 32 million and $ 33 million at December 31, 2016 and 2015 , 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 Other Operations, 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 investments in aircraft equipment held in a consolidated trust. These investments are reported at cost, less depreciation and are s ubject to impairment review, as discussed below. Investments in Life Settlement s 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 tran saction 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 th e 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. N et 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 with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable. Dividend income from common and preferred stock s . 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 reco rded in income upon the death of the insured. 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 or full redempti ons of available for sale fixed maturity securities , available for sale equity securities , real estate and other alternative investments . Reductions to the amortized cost basis of available for sale fixed maturity securities , available for sale equity secu rities 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 derivatives at AIGFP and (2) those instruments that are designated as h edging 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 fa ir 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 writte n 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 historic al 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 m anagement 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 res tructurings, 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 impairm ents. 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 a vailable for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and th e expected undiscounted recoverable value over the remaining expected holding perio d 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) 2016 2015 2014 Balance, beginning of year $ 1,747 $ 2,659 $ 3,872 Increases due to: Credit impairments on new securities subject to impairment losses 204 111 49 Additional credit impairments on previously impaired securities 212 109 85 Reductions due to: Credit impaired securities fully disposed of for which there was no prior intent or requirement to sell (296) (399) (613) Credit impaired securities for which there is a current intent or anticipated requirement to sell - 2 - Accretion on securities previously impaired due to credit * (767) (735) (725) Divested businesses (2) - - Other - - (9) Balance, end of year $ 1,098 $ 1,747 $ 2,659 * 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 la ws 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-te mporarily 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 be en 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 a s 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 investment s 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 conside red impaired if the undiscounted cash flows resulting from the expected proceeds would not be sufficient to recover our estimated future carrying amount, which is the current carrying amount for the investment in life settlements plus anticipated undiscoun ted 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 mortality assumptio ns 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. Ou r mortality assumptions are based on an industry table as supplemented with proprietary data on the older age mortality of U.S. insured lives. M ortality 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 an d 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. Wh en 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 purchas e certain RMBS securities that ha ve experienced deterioration in credit quality since their issuance. We determine whether it is probable at acquisition that we w ill not collect all contractually required payments for these PCI securities, includ ing both principal and interest. At acquisition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security i s determined based on our best estimate using key a ssumptions, 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 accretabl e yield, which is accreted into N et investment income over their remaining lives on a n effective yield basis. Additionally, the difference between the contractually required payments on the PCI securities and the undiscounted expected future cash flows repr esents 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 fu rther 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 undi scounted 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 r easons other than interest rate changes are recognized prospectively as adjustments to the accretable yield. 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. Our secured financing transactions also include those that involve the transfer of securities to financial institutions in exchange for cash (securities lending agreements). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts plus accrued interest, other than those that are accounted for at fair value. 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. In all reverse repurchase transactions, we take possession of or obtain a security interest in th e related securities, and we have the right to sell or repledge this collateral received. Mortgage and other loans receivable include commercial mortgages , residential mortgages , life insurance policy loans, commercial loans, and other loans and notes receivable. Commercial mortgages , residential mortgages , commercial loans, and other loans and notes receivable are carried at unpaid pr incipal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loan s 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. Premiums and discounts on purchased residential mortgages are also amortized to income as an adjustment to earnings using the interest method. Life insurance policy loa ns are carried at unpaid principal balances. 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 p olicy. M ethodology Used to Estimate the Allowance for Credit Losses Mortgage and other loans receivable are considered impaired when collection of all amounts due under contractual terms is n ot 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. A n 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 statistical mode ls primarily driven by past due status, debt servic e coverage, loan-to-value ratio, property type and location, loan term, profile of the borrower and of the major property tenants, and loan seasoning. When all or a portion of a loan is deemed uncollectib le, the uncollectible portion of the ca rrying amount of the loan is charged off against the allowance. Interest income is not accrued when payment of contractual principal and interest is not expected. Any cash received on impaired loans is generally rec orded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest is repaid or when a portion of the delinquent contractual payments are made and the ongoing required contractual payments have been made for an appropriate period. A significant majority of commercial mortgage s in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-reco urse 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 b e 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 IBN R. 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 fo r 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 doubtfu l 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 doubtfu l accounts on reinsurance assets was $ 207 million and $ 272 million at December 31, 2016 and 2015 , respectively. Changes in the allowance for doubtful accounts on reinsurance asse ts are reflected in Policyholder benefits and losses incurred within the Consolidated Statements of Income. Short-Duration Reinsurance Short-duration reinsurance is effected 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 o ver 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 premium s. 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 t he 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. 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 m anner consistent with the assumptions used for the underlying policy benefits and are presented as a component of Reinsurance assets. |
Variable Interest Entity | 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 co nsolidate 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. The primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that m ost 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 depend s on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE. |
Deferred Policy Acquisition Costs | Deferred p olicy 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. S uch 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 analy zed 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 employe e 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 c ontract 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 recov erability 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 impa irment 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 c osts. 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 l ife 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 is sued 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 deviatio n 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 amount of future policy benefit liabilities, net of DAC, and what 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, servicing and measuring the profitability of 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, inv estment - 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 in vestment income and spreads , net r ealized capital 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 significant ly, DAC is recalculated using the new assumptions , and a ny 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 i n 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 pr ofitability 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 assumpti on 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” meth odology 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 -ye ar reversion to the mean period falling below a certain rate (floor) or above a certain rate (cap) for a sustain ed 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 mat urity 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 state d 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 recognit ion 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 Replace ments 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 re lated 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 ar e charged or credited to income, and any new deferrable costs assoc iated 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 Sheet s with DAC. This value is based on the present value of future pre-tax profits dis counted 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 purch ase. 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 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 mitig ate 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 investm ent operations, which may include, among other things, CDSs and purchases of investments with embedded derivatives, such as equity -linked notes and convertible bonds . Interest rate, currency, equity and commodity swa ps, credit contracts , 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. Aggregate asset or liability positions are netted on the Consolidat ed Balance Sheet s 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 arrangem ents 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 derivativ e asset. D erivatives, with the exception of embedded derivatives, are reported at fair value in the Consolidated Balance Sheets in Other assets and Other liabiliti es . Embedded derivatives are generally presented with the host contract in the Consolidated B alance Sheets . 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 f or that instrument. See Notes 5 and 14 herein for additional information on embedded derivatives. |
Liability for unpaid claims and claims adjustment expense | Liability for Unpaid Losses and Loss Adjustment Expense s (Loss Reserves) Loss reserves represent the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and loss adjustment expenses (IBNR), less applicable discount. We regularly review and update the methods used to determine loss reserve est imates. 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 ch anges 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 c ost are referred to as favorable development. |
Future policy benefits for life and accident and health insurance contracts and policyholder contract deposits | 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 ra tes ranging from 0.2 percent to 9.0 percent at December 31, 2016 , 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 up on 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 witho ut life contingencies, funding agreements and GICs, p olicyholder contract deposits also include our liability for (a) certain guarantee d 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. For universal life policies with secondary guarantees, we recognize certain liabilities in addition to policyholder account balances. For universal life policies with secondary guarantees, as well as other universal life policies for which profits followed by losses a re expected at contract inception, a liability is recognized 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 ass essments 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 a liability, in addition to policyholder account balances, so that expected future losses are recognized in proportion to the emergence of profits in the earlier (profitable) years. Universal life account balances as well as these additional liabilities related to universal life products are reported within Policyho lder contract deposits in the Consolidated Balance Sheet. 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 set tlement 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 minimum death benefits. The liability for long-duration future poli cy benefits has been established including assumptions for interest rates which vary by year of issuance and product, and range from approximately 0.1 percent to 14 percent. Mortality and surrender rate assumptions are generally based on actual experience when the liability is established. Other Policyholder Funds Other policyholder funds include unearned revenue reserves (URR). URR consist 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. U RR 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 gross insurance in force at December 31, 2016 and 3.1 percent of gross domestic premiums and other co nsiderations in 2016 . The amount of annual dividends to be paid is approved locally by the boards of directors of the Life Insurance Companies. Provisions for future dividend payments are computed by jurisdiction, reflecting local regulations. T he 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, r einsurance 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 acc ording to the type of contract and the territory in which the policy is in force and are subject to local regulatory guidance. |
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, 2016 , including fixed and variable rate issuances. |
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 d iluted 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 our 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 the deferred tax asset requires us to consider all available evidence, including: the nature, freq uency, 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 period 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 tha t would be implemented, if necessary, to protect against the loss of the deferred tax asset. In performing our assessment of the recoverability of the deferred tax asset under this framework, we consider tax laws governing the utilization of the net operat ing loss, capital loss and foreign tax credit carryforwards in each applicable jurisdiction. Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards, even though the carr yforward period for the foreign tax credit is shorter than for the net operating loss. Our U.S. federal consolidated income tax group includes both life companies and non-life companies. While the U.S. taxable income of our non-life companies can be offs et by the net operating loss carryforwards, only a portion (no more than 35 percent) of the U.S. taxable income of our life companies can be offset by those net operating loss carryforwards. The remaining tax liability of our life companies can be offset by the foreign tax credit carryforwards. Accordingly, we utilize both the net operating loss and foreign tax credit carryforwards concurrently which enables us to realize our tax attributes prior to expiration. As of December 31, 2016 , based on all available evidence, it is more likely than not that the U.S. net operating loss and foreign tax credit carryforwards will be utilized prior to expiration and, thus, no valuation allowance has been established. Estimates of future taxable income, inclu ding income generated from prudent and feasible actions and tax planning strategies could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period. |
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. At December 31, 2016, as a result of the 2016 segment changes, goodwill is reported within our Commercial Insurance business – Liability and Financial Lines and our Property and Special Risks operati ng segments, our Consumer Insurance business – Life Insurance and Personal Insurance operating segments and our Legacy Portfolio operating segment. When a business is transferred from one reporting unit to another, as occurred as part of the 2016 segment c hanges, goodwill from the original operating segment is allocated among reporting units based on the fair value of business transferred, relative to business retained by a reporting unit. As such, at December 31, 201 6, $132 million of goodwill was re-alloc ated from the original reporting units to Le gacy Property and Casualty Run-O ff Insurance Lines and Legacy Life Insurance Run- O ff Lines reporting units in the amount of $75 million and $57 million, respectively. 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 an operating segment 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 an operating segment 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 operating segment and compare the estimated fai r value with the carrying amount of the operating segment, including allocated goodwill. The estimate of an operating segment’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 an operating segment to be used in the impairment test. If the estimated fair value of an operating segment exceeds its carrying amount, goodwill is not impaired. If the carrying value of an operating segment exceeds its esti mated fair value, goodwill associated with that operating segment 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 valu e of the goodwill is measured as the excess of the fair value of the operating segment over the amounts that would be assigned to the operating segment’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, 2016 based on the results of the goodwill impairment test. The following table presents the changes in goodwill by operating segm ent: Liability and Property and Life Personal Other Legacy (in millions) Financial Lines Special Risks Insurance Insurance Operations Portfolio Total Balance at January 1, 2014: Goodwill - gross $ 1,675 $ 623 $ - $ 2,472 $ - $ 182 $ 4,952 Accumulated impairments (797) (392) - (2,211) - (77) (3,477) Net goodwill 878 231 - 261 - 105 1,475 Increase (decrease) due to: Acquisition - - 21 - 7 - 28 Other (49) - - - - - (49) Balance at December 31, 2014: Goodwill - gross 1,626 623 21 2,472 7 182 4,931 Accumulated impairments (797) (392) - (2,211) - (77) (3,477) Net goodwill 829 231 21 261 7 105 1,454 Increase (decrease) due to: Acquisition - 96 55 - 20 37 208 Other (50) - 1 - - - (49) Balance at December 31, 2015: Goodwill - gross 1,576 719 77 2,472 27 219 5,090 Accumulated impairments (797) (392) - (2,211) - (77) (3,477) Net goodwill 779 327 77 261 27 142 1,613 Increase (decrease) due to: Dispositions - (12) - - - - (12) Other (137) 67 - - - (3) (73) Balance at December 31, 2016: Goodwill - gross 1,439 774 77 2,472 27 216 5,005 Accumulated impairments (797) (392) - (2,211) - (77) (3,477) Net goodwill $ 642 $ 382 $ 77 $ 261 $ 27 $ 139 $ 1,528 |
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. Separate accounts may also include deposits for funds held under st able value wrap funding agreements, although the majority of stable value wrap sales are measured based on the notional amount included in assets under management and do not include the receipt of funds. For a more detailed discussion of separate accounts, see Note 14 herein. |
Long-Duration 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. |
Other liabilities | Other liabilities consist of other funds on deposit, other payables, securities sold under agreements to repurchase, securities sold but not yet purchased and derivative liabilities. We have entered into certain insurance and reinsurance contracts, primarily in our Property Casualty Insurance Companies , 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 reduc ed. 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 b rokers 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 a t 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 stateme nt 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 a nd 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. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. 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 reme asured into that entity’s functional currency resulting in exchange gains or losses recorded in income. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income . Non-redeemable noncontrolling interest is the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. |
Future Application of Accounting Standards | Future Application of Accounting Standards 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 certain other agreements that are governed under other GAAP guidance, but could affect the revenue recognition for certain of our other activities. The standard is effective on January 1, 2018 and may be applied retrospec tively or through a cumulative effect adjustment to retained earnings at the date of adoption. Early adoption is permitted as of January 1, 2017, including interim periods. We are currently evaluating the impact to our revenue sources that are in scope of the standard. However, as the majority of our revenue sources are not in scope of the standard, we do not expect the adoption of the standard to have a material effect on our reported consolidated financial condition, results of operations or cash flows . R ecognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued an accounting standard that will require equity investments that do not follow the equity method of accounting or are not subject to consolidation to be measured at fair value with changes in fair value recognized in earnings, while financial liabilities for which fair value option accounting has been elected, changes in fair value due to instrument-specific credit risk will be presented separately in o ther comprehensive income. The standard allows the election to record equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes with changes in the carrying value of the equity in vestments recorded in earnings. The standard also updates certain fair value disclosure requirements for financial instruments carried at amortized cost. The standard is effective on January 1, 2018, with early adoption of certain provisions permitted. We are assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows. Leases In February 2016, the FASB issued an accounting standard that will require lessees with lease terms of more than 12 mon ths to recognize a right of use asset and a corresponding lease liability on their balance sheets. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. The standard i s effective on January 1, 2019, with early adoption permitted using a modified retrospective approach. We are assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows. We are currently quan tifying the expected gross up of our balance sheet for a right to use asset and a lease liability as required by the standard. Derivative Contract Novations In March 2016, the FASB issued an accounting standard that clarifies that a change in the counterpa rty (novation) to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. We will adopt the standard on its January 1, 2017 effective date, and do not expect the adoption of the standard will have a material effect on our reported consolidated financial condition, results of operations or cash flows. Contingent Put and Call Options in Debt I nstruments In March 2016, the FASB issued an accounting standard that clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their d ebt hosts. The standard requires an evaluation of embedded call (put) options solely on a four-step decision sequence that requires an entity to consider whether (1) the amount paid upon settlement is adjusted based on changes in an index, (2) the amount p aid upon settlement is indexed to an underlying other than interest rates or credit risk, (3) the debt involves a substantial premium or discount and (4) the put or call option is contingently exercisable. We will adopt the standard on its January 1, 2017 effective date, and do not expect the adoption of the standard to have a material effect on our reported consolidated financial condition, results of operations or cash flows. Simplifying the Transition to the Equity Method of Accounting In March 2016, the FASB issued an accounting standard that eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods during which the investment had been held. We will adopt the standard on its January 1, 2017 effectiv e date, and do not expect the adoption of the standard to have a material effect on our reported consolidated financial condition, results of operations or cash flows. Financial Instruments - Credit Losses In June 2016, the FASB issued an accounting standa rd that will change how entities account for credit losses for most financial assets. The standard will replace the existing incurred loss impairment model with a new “current expected credit loss model” and will apply to financial assets subject to credi t losses, those measured at amortized cost and certain off-balance sheet credit exposures. The impairment for available-for-sale debt securities will be measured in a similar manner, except that losses will be recognized as allowances rather than reductio ns in the amortized cost of the securities. The standard will also require additional information to be disclosed in the footnotes. The standard is effective on January 1, 2020, with early adoption permitted on January 1, 2019. We are assessing the impac t of the standard on our reported consolidated financial condition, results of operations and cash flows, but we expect an increase in our allowances for credit losses. The amount of the increase will be impacted by our portfolio composition and quality a t the adoption date as well as economic conditions and forecasts at that time. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued an accounting standard that addresses diversity in how certain cash receipts and cash p ayments are presented and classified in the statement of cash flows. The amendments provide clarity on the treatment of eight specifically defined types of cash inflows and outflows. The standard is effective on January 1, 2018, with early adoption permitt ed as long as all amendments are included in the same period. The standard addresses presentation in the Statement of Cash Flows only and will have no effect on our reported consolidated financial condition or results of operations. Intra-Entity Transfers of Assets Other than Inventory In October 2016, the FASB issued an accounting standard that will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the asset is sold to a third party. The standard is effective on January 1, 2018, with early adoption permitted. We are assessing the impact of the standard on our reported consolidated financial condition, results of operations and cash flows. Interest Held through Related Parties that are under Common Control In October 2016, the FASB issued an accounting standard that amends the consolidation analysis for a reporting entity that is the single decision maker of a VIE. The new guidance will req uire the decision maker’s evaluation of its interests held through related parties that are under common control on a proportionate basis (rather than in their entirety) when determining whether it is the primary beneficiary of that VIE. The amendment doe s not change the characteristics of a primary beneficiary. We will adopt the standard on its January 1, 2017 effective date, and do not expect the impact of the standard to have a material effect on our reported consolidated financial condition, results of operations or cash flows. Restricted Cash In November 2016, the FASB issued an accounting standard that provides guidance on the presentation of restricted cash in the Statement of Cash Flows. Entities will be required to explain the changes during a reporting period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents in the statement of cash flows. The standard is effective on January 1, 2018, with early adoption permitted. The s tandard addresses presentation of restricted cash in the Statement of Cash Flows only and will have no effect on our reported consolidated financial condition or results of operations. Clarifying the Definition of a Business In January 2017, the FASB issued an accounting standard that changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The new standard will require an entity to evaluate if substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar assets; if so, the set of transferred assets and activities is not a business. At a minimum, a set must include an input and a substantive process that together significantly contribute to the ability to create output. The standard is effective on January 1, 2018, with early adoption permitted. We are assessing the impact of early-adopting the standard on our reported consolidated financial condition, results of operations and cash flows. Because the standard requires prospective adoption, the impact is dependent on future acquisitions and dispositions. |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Accounting Standards Adopted | Accounting Standards Adopted During 2016 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 perform ance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. We adopted the standard prospectively on its required effective date of January 1, 2016. The adoption of this standard did not 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 acc ounting 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 i s more observable. We adopted the standard retrospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Amend ments 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 evalu ation of whether limited partnerships and similar legal entities are variable interest entities (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 re quired 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. We adopted the standard prospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB issued an acco unting standard that provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license the customer should account for the software license element of the ar rangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance does not change generally accept ed accounting principles applicable to a customer's accounting for service contracts. Consequently, all software licenses will be accounted for consistent with other licenses of intangible assets. We adopted the standard prospectively on its required effe ctive date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows . Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued an accounting standard that amends the guidance for debt issuance costs by requiring such costs to be presented as a deduction to the corresponding debt liability, rather than as an asset, and for the amortization of such costs to be reported as interest expe nse. The amendments are intended to simplify the presentation of debt issuance costs and make it consistent with the presentation of debt discounts or premiums. The amendments, however, do not change the recognition and measurement guidance applicable to debt issuance costs. We adopted the standard retrospectively on its required effective date of January 1, 2016. Because the new standard did not affect accounting recognition or measurement of debt issuance costs, the adoption of the standard did not hav e a material effect on our consolidated financial condition, results of operations or cash flows. Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its Equivalent) In May 2015, the FASB amended standard on fair value disclosures for investments for which fair value is measured using the net asset value (NAV) per share (or its equivalent) as a practical expedient. The amendment s in this update remove the requirement to categorize within the fair value hierarchy a ll investments for which fair value is measured using the NAV per share practical expedient. In addition, the amendment removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the NAV pe r share as a practical expedient. We adopted the standard retrospectively on its required effective date of January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or c ash flows. Short Duration Insurance Contracts In May 2015, the FASB issued an accounting standard that requires additional disclosures for short-duration insurance contracts. New disclosures about the liability for unpaid losses and loss adjustment expens es and net incurred losses and loss adjustment expenses are now required (including accident year information). The annual disclosures by accident year include: disaggregated net incurred and paid claims development tables segregated by business type (not required to exceed 10 years), reconciliation of total net reserves included in development tables to the reported liability for unpaid losses and loss adjustment expenses, incurred but not reported (IBNR) information, quantitative information and a qualita tive description about claim frequency, and the average annual percentage payout of incurred claims. Further, the new standard requires, when applicable, disclosures about discounting liabilities for unpaid losses and loss adjustment expenses and significa nt changes and reasons for changes in methodologies and assumptions used to determine unpaid losses and loss adjustment expenses. We adopted this standard on its required effective date of December 31, 2016. The required disclosures, reflected in Note 13 , did not have any effect on our consolidated financial condition, results of operations or cash flows. In addition, the roll forward of the liability for unpaid losses and loss adjustment expenses currently disclosed in the annual financial statements wil l be disclosed as required for interim periods beginning in the first quarter of 2017. Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern In August 2014, the FASB issued an accounting standard that requires management to evaluate and disclose if there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern even if the entity’s liquidation is not imminent. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but this new standard requires an evaluation to determine whether to disclose information about the relevant conditions and events. Currently under U.S. GAAP there is no guidance about management’s re sponsibility under this standard. U.S. auditing standards and federal securities law require that an auditor evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time not to exceed one year beyond the date of the financial statements being audited. We adopted the standard on its required effective date of December 31, 2016. The adoption of this standard did not have an effect on our consolidated financial condition, results of op erations or cash flows. Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued a standard that simplifies several aspects of the accounting for share-based compensation, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We elected early-adoption of the Standard , effective January 1, 2016. The adoption of this standard did not have a material effect on our consolidated financial condition, results of operations or cash flows. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SEGMENT INFORMATION | |
Schedule of continuing operations by reportable segment | Net Pre-Tax Total Investment Interest Amortization Operating (in millions) Revenues Income Expense of DAC Income (Loss) 2016 Commercial Insurance Liability and Financial Lines $ 13,270 $ 2,700 $ 10 $ 1,098 $ (2,649) Property and Special Risks 8,098 568 7 951 (86) Total Commercial Insurance 21,368 3,268 17 2,049 (2,735) Consumer Insurance Individual Retirement 5,758 3,878 49 298 2,269 Group Retirement 2,769 2,146 27 129 931 Life Insurance 3,818 1,035 13 182 (37) Personal Insurance 11,704 286 11 2,072 686 Total Consumer Insurance 24,049 7,345 100 2,681 3,849 Other Operations 4,018 770 983 76 (748) Legacy Portfolio 5,250 2,913 260 108 1,007 AIG Consolidation and elimination (494) (351) (100) (117) 42 Total AIG Consolidated operating revenues and pre-tax operating income $ 54,191 $ 13,945 $ 1,260 $ 4,797 $ 1,415 Reconciling Items from pre-tax operating income to pre-tax income (loss): Changes in fair value of securities used to hedge guaranteed living benefits 120 120 - - 120 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - (276) 195 Other income (expense) - net - - - - 42 Loss on extinguishment of debt - - - - (74) Net realized capital gains (1,944) - - - (1,944) Income from divested businesses - - - - 545 Non-operating litigation reserves and settlements 44 - - - 41 Reserve development related to non-operating run-off insurance business - - - - - Net loss reserve discount benefit (charge) - - - - 427 Pension expense related to a one-time lump sum payment to former employees - - - - (147) Restructuring and other costs - - - - (694) Other (44) - - - - Revenues and Pre-tax income (loss) $ 52,367 $ 14,065 $ 1,260 $ 4,521 $ (74) 2015 Commercial Insurance Liability and Financial Lines $ 14,684 $ 2,818 $ 5 $ 1,439 $ (661) Property and Special Risks 8,452 603 3 910 1,226 Total Commercial Insurance 23,136 3,421 8 2,349 565 Consumer Insurance Individual Retirement 6,450 3,805 27 431 1,812 Group Retirement 2,834 2,192 15 50 1,100 Life Insurance 3,771 1,034 7 311 (51) Personal Insurance 11,475 325 5 1,970 68 Total Consumer Insurance 24,530 7,356 54 2,762 2,929 Other Operations 4,650 706 1,030 49 (567) Legacy Portfolio 5,771 2,928 280 102 1,133 AIG Consolidation and elimination (496) (315) (91) (26) (76) Total AIG Consolidated operating revenues and pre-tax operating income $ 57,591 $ 14,096 $ 1,281 $ 5,236 $ 3,984 Reconciling Items from pre-tax operating income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits (43) (43) - - (43) Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - - (15) Other income (expense) - net - - - - (233) Loss on extinguishment of debt - - - - (756) Net realized capital gains 776 - - - 776 Loss from divested businesses (48) - - - (59) Non-operating litigation reserves and settlements 94 - - - 82 Reserve development related to non-operating run-off insurance business - - - - (30) Net loss reserve discount benefit (charge) - - - - 71 Restructuring and other costs - - - - (496) Other (43) - - - - Revenues and Pre-tax income $ 58,327 $ 14,053 $ 1,281 $ 5,236 $ 3,281 2014 Commercial Insurance Liability and Financial Lines $ 16,012 $ 3,410 $ 1 $ 1,464 $ 3,044 Property and Special Risks 8,650 845 - 1,033 1,203 Total Commercial Insurance 24,662 4,255 1 2,497 4,247 Consumer Insurance Individual Retirement 6,739 4,103 14 315 2,306 Group Retirement 3,005 2,349 8 31 1,229 Life Insurance 3,630 1,100 4 221 290 Personal Insurance 12,339 372 1 2,088 381 Total Consumer Insurance 25,713 7,924 27 2,655 4,206 Other Operations 3,596 749 1,291 45 (958) Legacy Portfolio 7,353 3,245 390 81 2,576 AIG Consolidation and elimination (323) (354) 9 (4) (19) Total AIG Consolidated operating revenues and pre-tax operating income $ 61,001 $ 15,819 $ 1,718 $ 5,274 $ 10,052 Reconciling Items from pre-tax operating income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 260 260 - - 260 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - - - 56 (217) Loss on extinguishment of debt - - - - (2,282) Net realized capital gains 739 - - - 739 Loss from divested businesses 1,602 - - - 2,169 Non-operating litigation reserves and settlements 804 - - - 258 Reserve development related to non-operating run-off insurance business - - - - - Net loss reserve discount benefit (charge) - - - - (478) Restructuring and other costs - - - - - Other - - - - - Revenues and Pre-tax income $ 64,406 $ 16,079 $ 1,718 $ 5,330 $ 10,501 |
Schedule of year-end identifiable assets and capital expenditures by reportable segment | Year-End Identifiable Assets Capital Expenditures (in millions) 2016 2015 2016 2015 Property Casualty Insurance Companies $ 118,268 $ 114,134 $ 685 $ 965 Life Insurance Companies 207,145 258,003 85 102 Other 184,704 136,487 349 655 AIG Consolidation and Elimination (11,853) (11,782) - - Total Assets $ 498,264 $ 496,842 $ 1,119 $ 1,722 |
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) 2016 2015 2014 2016 2015 2014 U.S. $ 37,405 $ 41,623 $ 40,291 $ 734 $ 912 $ 819 Europe 4,613 5,772 6,140 145 171 154 Japan 3,636 4,293 3,641 524 449 400 Other 6,713 6,639 14,334 1,257 1,603 1,327 Consolidated $ 52,367 $ 58,327 $ 64,406 $ 2,660 $ 3,135 $ 2,700 * Revenues are generally reported according to the geographic location of the reporting unit. |
HELD-FOR-SALE CLASSIFICATION (T
HELD-FOR-SALE CLASSIFICATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
HELD-FOR-SALE CLASSIFICATION | |
Summary of assets and liabilities held for sale | December 31, (in millions) 2016 Assets: Fixed maturity securities $ 6,045 Equity securities 149 Mortgage and other loans receivable, net 137 Other invested assets 2 Short-term investments 130 Cash 133 Accrued investment income 21 Premiums and other receivables, net of allowance 351 Reinsurance assets, net of allowance 8 Deferred policy acquisition costs 471 Other assets 273 Assets of businesses held for sale 7,720 Less: Loss Accrual (521) Total assets held for sale $ 7,199 Liabilities: Liability for unpaid losses and loss adjustment expenses $ 402 Unearned premiums 297 Future policy benefits for life and accident and health insurance contracts 4,579 Other policyholder funds 378 Long-term debt - Other liabilities 450 Total liabilities held for sale $ 6,106 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
FAIR VALUE MEASUREMENTS | |
Assets and liabilities measured at fair value on a recurring basis | December 31, 2016 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (b) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 63 $ 1,929 $ - $ - $ - $ 1,992 Obligations of states, municipalities and political subdivisions - 22,732 2,040 - - 24,772 Non-U.S. governments 52 14,466 17 - - 14,535 Corporate debt - 131,047 1,133 - - 132,180 RMBS - 20,468 16,906 - - 37,374 CMBS - 12,231 2,040 - - 14,271 CDO/ABS - 8,578 7,835 - - 16,413 Total bonds available for sale 115 211,451 29,971 - - 241,537 Other bond securities: U.S. government and government sponsored entities - 2,939 - - - 2,939 Obligations of states, municipalities and political subdivisions - - - - - - Non-U.S. governments - 51 - - - 51 Corporate debt - 1,755 17 - - 1,772 RMBS - 420 1,605 - - 2,025 CMBS - 448 155 - - 603 CDO/ABS - 905 5,703 - - 6,608 Total other bond securities - 6,518 7,480 - - 13,998 Equity securities available for sale: Common stock 1,056 9 - - - 1,065 Preferred stock 752 - - - - 752 Mutual funds 260 1 - - - 261 Total equity securities available for sale 2,068 10 - - - 2,078 Other equity securities 482 - - - - 482 Mortgage and other loans receivable - - 11 - - 11 Other invested assets (a) - 1 204 - - 205 Derivative assets: Interest rate contracts - 2,328 - - - 2,328 Foreign exchange contracts - 1,320 - - - 1,320 Equity contracts 188 59 58 - - 305 Credit contracts - - 2 - - 2 Other contracts - 6 16 - - 22 Counterparty netting and cash collateral - - - (1,265) (903) (2,168) Total derivative assets 188 3,713 76 (1,265) (903) 1,809 Short-term investments 2,660 681 - - - 3,341 Separate account assets 77,318 5,654 - - - 82,972 Total $ 82,831 $ 228,028 $ 37,742 $ (1,265) $ (903) $ 346,433 Liabilities: Policyholder contract deposits $ - $ 25 $ 3,033 $ - $ - $ 3,058 Other policyholder funds 5 - - - - 5 Derivative liabilities: Interest rate contracts - 3,039 38 - - 3,077 Foreign exchange contracts - 1,358 11 - - 1,369 Equity contracts 12 7 - - - 19 Credit contracts - - 331 - - 331 Other contracts - 1 5 - - 6 Counterparty netting and cash collateral - - - (1,265) (1,521) (2,786) Total derivative liabilities 12 4,405 385 (1,265) (1,521) 2,016 Long-term debt - 3,357 71 - - 3,428 Other liabilities - - - - - - Total $ 17 $ 7,787 $ 3,489 $ (1,265) $ (1,521) $ 8,507 December 31, 2015 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (b) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ - $ 1,844 $ - $ - $ - $ 1,844 Obligations of states, municipalities and political subdivisions - 25,199 2,124 - - 27,323 Non-U.S. governments 683 17,480 32 - - 18,195 Corporate debt - 134,618 1,370 - - 135,988 RMBS - 19,690 16,537 - - 36,227 CMBS - 10,986 2,585 - - 13,571 CDO/ABS - 8,928 6,169 - - 15,097 Total bonds available for sale 683 218,745 28,817 - - 248,245 Other bond securities: U.S. government and government sponsored entities - 3,369 - - - 3,369 Obligations of states, municipalities and political subdivisions - 75 - - - 75 Non-U.S. governments - 50 - - - 50 Corporate debt - 2,018 17 - - 2,035 RMBS - 649 1,581 - - 2,230 CMBS - 557 193 - - 750 CDO/ABS - 1,218 7,055 - - 8,273 Total other bond securities - 7,936 8,846 - - 16,782 Equity securities available for sale: Common stock 2,401 - - - - 2,401 Preferred stock 22 - - - - 22 Mutual funds 491 1 - - - 492 Total equity securities available for sale 2,914 1 - - - 2,915 Other equity securities 906 1 14 - - 921 Mortgage and other loans receivable - - 11 - - 11 Other invested assets (a) 2 1 332 - - 335 Derivative assets: Interest rate contracts - 3,150 12 - - 3,162 Foreign exchange contracts - 766 - - - 766 Equity contracts 91 32 54 - - 177 Credit contracts - - 3 - - 3 Other contracts - 2 21 - - 23 Counterparty netting and cash collateral - - - (1,268) (1,554) (2,822) Total derivative assets 91 3,950 90 (1,268) (1,554) 1,309 Short-term investments 1,416 1,175 - - - 2,591 Separate account assets 73,699 5,875 - - - 79,574 Total $ 79,711 $ 237,684 $ 38,110 $ (1,268) $ (1,554) $ 352,683 Liabilities: Policyholder contract deposits $ - $ 36 $ 2,289 $ - $ - $ 2,325 Other policyholder funds 6 - - - - 6 Derivative liabilities: Interest rate contracts - 2,137 62 - - 2,199 Foreign exchange contracts - 1,197 7 - - 1,204 Equity contracts - 68 - - - 68 Credit contracts - - 508 - - 508 Other contracts - - 69 - - 69 Counterparty netting and cash collateral - - - (1,268) (760) (2,028) Total derivative liabilities - 3,402 646 (1,268) (760) 2,020 Long-term debt - 3,487 183 - - 3,670 Other liabilities - 62 - - - 62 Total $ 6 $ 6,987 $ 3,118 $ (1,268) $ (760) $ 8,083 (a) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $ 6.7 billion and $ 8.6 billion as of December 31, 2016 and December 31, 2015 , respectively. (b) Represents netting of derivative exposures covered by qualifying master netting agreements. |
Changes in Level 3 recurring fair value measurements (Assets) | Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year December 31, 2016 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,124 $ 5 $ - $ 61 $ 2 $ (152) $ - $ - $ 2,040 $ - Non-U.S. governments 32 (3) (12) 7 1 (5) - (3) 17 - Corporate debt 1,370 (13) (42) (111) 920 (977) (14) - 1,133 - RMBS 16,537 970 (24) (878) 330 (29) - - 16,906 - CMBS 2,585 72 (132) (323) 23 (185) - - 2,040 - CDO/ABS 6,169 34 (111) 1,720 23 - - - 7,835 - Total bonds available for sale 28,817 1,065 (321) 476 1,299 (1,348) (14) (3) 29,971 - Other bond securities: Corporate debt 17 - - - - - - - 17 - RMBS 1,581 43 - (1) - (18) - - 1,605 (24) CMBS 193 - - (38) - - - - 155 (1) CDO/ABS 7,055 271 - (1,623) 65 (65) - - 5,703 (393) Total other bond securities 8,846 314 - (1,662) 65 (83) - - 7,480 (418) Equity securities available for sale: Common stock - - - - - - - - - - Total equity securities available for sale - - - - - - - - - - Other equity securities 14 - - (14) - - - - - - Mortgage and other loans receivable 11 - - - - - - - 11 - Other invested assets 332 1 - (75) - (54) - - 204 8 Total $ 38,020 $ 1,380 $ (321) $ (1,275) $ 1,364 $ (1,485) $ (14) $ (3) $ 37,666 $ (410) Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross to Liabilities Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year Liabilities: Policyholder contract deposits $ 2,289 $ 441 $ - $ 303 $ - $ - $ - $ - $ 3,033 $ (5) Derivative liabilities, net: Interest rate contracts 50 (8) - (4) - - - - 38 6 Foreign exchange contracts 7 5 - (1) - - - - 11 (4) Equity contracts (54) (10) - 6 - - - - (58) 10 Commodity contracts - - - - - - - - - - Credit contracts 505 (81) - (95) - - - - 329 71 Other contracts 48 (10) - (53) - 4 - - (11) 128 Total derivative liabilities, net (a) 556 (104) - (147) - 4 - - 309 211 Long-term debt (b) 183 4 - (3) - (113) - - 71 (1) Total $ 3,028 $ 341 $ - $ 153 $ - $ (109) $ - $ - $ 3,413 $ 205 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 December 31, 2015 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,159 $ 1 $ (85) $ 154 $ - $ (105) $ 2,124 $ - Non-U.S. governments 30 - (7) 10 - (1) 32 - Corporate debt 1,883 15 (109) (210) 1,515 (1,724) 1,370 - RMBS 16,805 1,052 (512) (808) - - 16,537 - CMBS 2,696 77 (95) 118 - (211) 2,585 - CDO/ABS 6,110 149 (258) 300 7 (139) 6,169 - Total bonds available for sale 29,683 1,294 (1,066) (436) 1,522 (2,180) 28,817 - Other bond securities: Corporate debt - - - 1 16 - 17 - RMBS 1,105 32 - 460 43 (59) 1,581 (27) CMBS 369 (3) - (177) 4 - 193 (13) CDO/ABS 7,449 646 - (1,658) 698 (80) 7,055 (87) Total other bond securities 8,923 675 - (1,374) 761 (139) 8,846 (127) Equity securities available for sale: Common stock 1 2 - (3) - - - - Total equity securities available for sale 1 2 - (3) - - - - Other equity securities - (1) - (7) 22 - 14 (2) Mortgage and other loans receivable 6 - - 5 - - 11 - Other invested assets 1,042 448 (510) (648) - - 332 - Total $ 39,655 $ 2,418 $ (1,576) $ (2,463) $ 2,305 $ (2,319) $ 38,020 $ (129) 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 Liabilities: Policyholder contract deposits $ 1,509 $ 315 $ - $ 465 $ - $ - $ 2,289 $ 64 Derivative liabilities, net: Interest rate contracts 74 - - (24) - - 50 (1) Foreign exchange contracts 8 (1) - - - - 7 1 Equity contracts (47) (2) - (5) - - (54) (3) Credit contracts 978 (186) - (287) - - 505 95 Other contracts 59 (79) - 68 - - 48 76 Total derivatives liabilities, net (a) 1,072 (268) - (248) - - 556 168 Long-term debt (b) 213 (10) - (20) - - 183 17 Total $ 2,794 $ 37 $ - $ 197 $ - $ - $ 3,028 $ 249 (a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. (b) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable. |
Changes in Level 3 recurring fair value measurements (Liabilities) | Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross to Assets Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year December 31, 2016 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,124 $ 5 $ - $ 61 $ 2 $ (152) $ - $ - $ 2,040 $ - Non-U.S. governments 32 (3) (12) 7 1 (5) - (3) 17 - Corporate debt 1,370 (13) (42) (111) 920 (977) (14) - 1,133 - RMBS 16,537 970 (24) (878) 330 (29) - - 16,906 - CMBS 2,585 72 (132) (323) 23 (185) - - 2,040 - CDO/ABS 6,169 34 (111) 1,720 23 - - - 7,835 - Total bonds available for sale 28,817 1,065 (321) 476 1,299 (1,348) (14) (3) 29,971 - Other bond securities: Corporate debt 17 - - - - - - - 17 - RMBS 1,581 43 - (1) - (18) - - 1,605 (24) CMBS 193 - - (38) - - - - 155 (1) CDO/ABS 7,055 271 - (1,623) 65 (65) - - 5,703 (393) Total other bond securities 8,846 314 - (1,662) 65 (83) - - 7,480 (418) Equity securities available for sale: Common stock - - - - - - - - - - Total equity securities available for sale - - - - - - - - - - Other equity securities 14 - - (14) - - - - - - Mortgage and other loans receivable 11 - - - - - - - 11 - Other invested assets 332 1 - (75) - (54) - - 204 8 Total $ 38,020 $ 1,380 $ (321) $ (1,275) $ 1,364 $ (1,485) $ (14) $ (3) $ 37,666 $ (410) Net Changes in Realized and Unrealized Gains Unrealized Purchases, Reclassified (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross to Liabilities Fair Value in Income on Beginning Included Comprehensive Issues and Transfers Transfers Divested Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out Businesses for Sale of Year at End of Year Liabilities: Policyholder contract deposits $ 2,289 $ 441 $ - $ 303 $ - $ - $ - $ - $ 3,033 $ (5) Derivative liabilities, net: Interest rate contracts 50 (8) - (4) - - - - 38 6 Foreign exchange contracts 7 5 - (1) - - - - 11 (4) Equity contracts (54) (10) - 6 - - - - (58) 10 Commodity contracts - - - - - - - - - - Credit contracts 505 (81) - (95) - - - - 329 71 Other contracts 48 (10) - (53) - 4 - - (11) 128 Total derivative liabilities, net (a) 556 (104) - (147) - 4 - - 309 211 Long-term debt (b) 183 4 - (3) - (113) - - 71 (1) Total $ 3,028 $ 341 $ - $ 153 $ - $ (109) $ - $ - $ 3,413 $ 205 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 December 31, 2015 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,159 $ 1 $ (85) $ 154 $ - $ (105) $ 2,124 $ - Non-U.S. governments 30 - (7) 10 - (1) 32 - Corporate debt 1,883 15 (109) (210) 1,515 (1,724) 1,370 - RMBS 16,805 1,052 (512) (808) - - 16,537 - CMBS 2,696 77 (95) 118 - (211) 2,585 - CDO/ABS 6,110 149 (258) 300 7 (139) 6,169 - Total bonds available for sale 29,683 1,294 (1,066) (436) 1,522 (2,180) 28,817 - Other bond securities: Corporate debt - - - 1 16 - 17 - RMBS 1,105 32 - 460 43 (59) 1,581 (27) CMBS 369 (3) - (177) 4 - 193 (13) CDO/ABS 7,449 646 - (1,658) 698 (80) 7,055 (87) Total other bond securities 8,923 675 - (1,374) 761 (139) 8,846 (127) Equity securities available for sale: Common stock 1 2 - (3) - - - - Total equity securities available for sale 1 2 - (3) - - - - Other equity securities - (1) - (7) 22 - 14 (2) Mortgage and other loans receivable 6 - - 5 - - 11 - Other invested assets 1,042 448 (510) (648) - - 332 - Total $ 39,655 $ 2,418 $ (1,576) $ (2,463) $ 2,305 $ (2,319) $ 38,020 $ (129) 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 Liabilities: Policyholder contract deposits $ 1,509 $ 315 $ - $ 465 $ - $ - $ 2,289 $ 64 Derivative liabilities, net: Interest rate contracts 74 - - (24) - - 50 (1) Foreign exchange contracts 8 (1) - - - - 7 1 Equity contracts (47) (2) - (5) - - (54) (3) Credit contracts 978 (186) - (287) - - 505 95 Other contracts 59 (79) - 68 - - 48 76 Total derivatives liabilities, net (a) 1,072 (268) - (248) - - 556 168 Long-term debt (b) 213 (10) - (20) - - 183 17 Total $ 2,794 $ 37 $ - $ 197 $ - $ - $ 3,028 $ 249 (a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. (b) Includes guaranteed investment agreements (GIAs), notes, bonds, loans and mortgages payable. |
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 December 31, 2016 Assets: Bonds available for sale $ 1,180 $ (118) $ 3 $ 1,065 Other bond securities 110 44 160 314 Equity securities available for sale - - - - Other equity securities - - - - Other invested assets 13 39 (51) 1 December 31, 2015 Assets: Bonds available for sale $ 1,227 $ (49) $ 116 $ 1,294 Other bond securities 44 3 628 675 Equity securities available for sale - 2 - 2 Other equity securities - - (1) (1) Other invested assets (10) 393 65 448 Net Net Realized Investment Capital Other (in millions) Income (Gains) Losses Income Total December 31, 2016 Liabilities: Policyholder contract deposits - 441 - 441 Derivative liabilities, net - (8) (96) (104) Long-term debt - - 4 4 December 31, 2015 Liabilities: Policyholder contract deposits - 315 - 315 Derivative liabilities, net - 1 (269) (268) Long-term debt - - (10) (10) |
Gross components of purchases, sales, issues and settlements, net | Purchases, Sales, Issues and (in millions) Purchases Sales Settlements Settlements, Net (a) December 31, 2016 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 164 $ (8) $ (95) $ 61 Non-U.S. governments 13 - (6) 7 Corporate debt 29 (25) (115) (111) RMBS 2,635 (81) (3,432) (878) CMBS 156 (98) (381) (323) CDO/ABS 2,460 (99) (641) 1,720 Total bonds available for sale 5,457 (311) (4,670) 476 Other bond securities: Corporate debt - - - - RMBS 343 (104) (240) (1) CMBS 53 (86) (5) (38) CDO/ABS 69 (458) (1,234) (1,623) Total other bond securities 465 (648) (1,479) (1,662) Equity securities available for sale - - - - Other equity securities 14 - (28) (14) Mortgage and other loans receivable 1 (2) 1 - Other invested assets 37 (10) (102) (75) Total assets $ 5,974 $ (971) $ (6,278) $ (1,275) Liabilities: Policyholder contract deposits $ - $ 437 $ (134) $ 303 Derivative liabilities, net (6) - (141) (147) Long-term debt (b) - - (3) (3) Total liabilities $ (6) $ 437 $ (278) $ 153 December 31, 2015 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions (c) $ 279 $ (37) $ (88) $ 154 Non-U.S. governments 18 (1) (7) 10 Corporate debt 221 (60) (371) (210) RMBS 2,215 (194) (2,829) (808) CMBS 273 (28) (127) 118 CDO/ABS 1,400 (210) (890) 300 Total bonds available for sale 4,406 (530) (4,312) (436) Other bond securities: Corporate debt - - 1 1 RMBS 655 (22) (173) 460 CMBS - (79) (98) (177) CDO/ABS 242 (380) (1,520) (1,658) Total other bond securities 897 (481) (1,790) (1,374) Equity securities available for sale - (2) (1) (3) Other equity securities - - (7) (7) Mortgage and other loans receivable 5 - - 5 Other invested assets 47 (587) (108) (648) Total assets $ 5,355 $ (1,600) $ (6,218) $ (2,463) Liabilities: Policyholder contract deposits $ - $ 442 $ 23 $ 465 Derivative liabilities, net (19) - (229) (248) Long-term debt (b) - - (20) (20) Total liabilities $ (19) $ 442 $ (226) $ 197 (a) There were no issuances during the year s ended December 31, 2016 and 2015 . ( b ) Includes GIAs, notes, bonds, loans and mortgages payable. (c) Purchases primarily reflect the effect of consolidating previously unconsolidated securitization vehicles. |
Significant unobservable inputs used for recurring fair value measurements | Fair Value at December 31, Valuation Range (in millions) 2016 Technique Unobservable Input (b) (Weighted Average) Assets: Obligations of states, municipalities and political subdivisions $ 1,248 Discounted cash flow Yield 4.12% - 4.91% (4.52%) Corporate debt 498 Discounted cash flow Yield 3.41% - 6.38% (4.90%) RMBS (a) 17,412 Discounted cash flow Constant prepayment rate 3.95% - 6.54% (5.25%) Loss severity 47.51% - 80.98% (64.24%) Constant default rate 3.28% - 8.64% (5.96%) Yield 3.28% - 5.87% (4.57%) CDO/ABS (a) 4,368 Discounted cash flow Yield 3.67% - 5.85% (4.76%) CMBS 1,511 Discounted cash flow Yield 0.48% - 10.21% (5.34%) Liabilities: Embedded derivatives within Policyholder contract deposits: GMWB 1,777 Discounted cash flow Equity volatility 13.00% - 50.00% Base lapse rate 0.50% - 20.00% Dynamic lapse multiplier 30.00% - 170.00% Mortality multiplier (c) 42.00% - 161.00% Utilization 100.00% Equity / interest-rate correlation 20.00% - 40.00% Index Annuities 859 Discounted cash flow Lapse rate 1.00% - 66.00% Mortality multiplier (c) 101.00% - 103.00% Indexed Life 381 Discounted cash flow Base lapse rate 2.00% - 19.00% Mortality rate 0.00% - 40.00% Fair Value at December 31, Valuation Range (in millions) 2015 Technique Unobservable Input (b) (Weighted Average) Assets: Obligations of states, municipalities and political subdivisions $ 1,217 Discounted cash flow Yield 4.32% - 5.10% (4.71%) Corporate debt 642 Discounted cash flow Yield 5.63% - 12.45% (9.04%) RMBS (a) 17,280 Discounted cash flow Constant prepayment rate 0.99% - 8.95% (4.97%) Loss severity 47.21% - 79.50% (63.35%) Constant default rate 3.49% - 9.04% (6.26%) Yield 3.13% - 6.14% (4.63%) CDO/ABS (a) 3,338 Discounted cash flow Yield 3.41% - 4.98% (4.19%) CMBS 2,388 Discounted cash flow Yield 0.00% - 17.65% (6.62%) Liabilities: Embedded derivatives within Policyholder contract deposits: GMWB 1,234 Discounted cash flow Equity volatility 15.00% - 50.00% Base lapse rate 1.00% - 17.00% Dynamic lapse multiplier 0.20% - 25.50% Mortality multiplier (d) 80.00% - 104.27% Utilization 0.00% - 70.00% Equity / interest rate correlation 20.00% - 40.00% Index Annuities 715 Discounted cash flow Lapse rate 0.75% - 66.00% Mortality multiplier (d) 50.00% - 75.00% Indexed Life 332 Discounted cash flow Base lapse rate 2.00% to 19.00% Mortality rate 0.00% to 40.00% (a) Information received from third-party valuation service providers. The ranges of the unobservable inputs for constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the securitiza tion 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) Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table for Guaranteed Minimum Withdrawal Benefits (GMWB). (d) Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table for GMWB, and the 1975-1980 Modified Basic Table for index annuities. (e) Beginning in the third quarter of 2015, we began valuing these instruments using prices obtained from vendors and/or counterparties and discontinued use of the BET model. |
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share | December 31, 2016 December 31, 2015 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 $ 1,424 $ 750 $ 1,774 $ 436 Real Estate / Infrastructure Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities 258 208 306 213 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 137 31 107 41 Distressed Securities of companies that are in default, under bankruptcy protection, or troubled 123 44 146 41 Other Includes multi-strategy, mezzanine, and other strategies 312 215 298 239 Total private equity funds 2,254 1,248 2,631 970 Hedge funds * : Event-driven Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations 1,453 9 1,194 - Long-short Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk 1,429 - 2,978 25 Macro Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions 992 - 555 - Distressed Securities of companies that are in default, under bankruptcy protection or troubled 416 8 699 8 Emerging markets Investments in the financial markets of developing countries - - 353 - Other Includes investments held in funds that are less liquid, as well as other strategies which allow for broader allocation between public and private investments 197 14 167 - Total hedge funds 4,487 31 5,946 33 Total $ 6,741 $ 1,279 $ 8,577 $ 1,003 |
Gains or losses related to the eligible instruments for which AIG elected the fair value option | Years Ended December 31, Gain (Loss) (in millions) 2016 2015 2014 Assets: Bond and equity securities $ 447 $ 616 $ 2,099 Alternative investments (a) 28 36 313 Other, including Short-term investments - 2 10 Liabilities: Long-term debt (b) (9) (38) (269) Other liabilities - (3) (13) Total gain $ 466 $ 613 $ 2,140 (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 | December 31, 2016 December 31, 2015 Outstanding Outstanding (in millions) Fair Value Principal Amount Difference Fair Value Principal Amount Difference Assets: Mortgage and other loans receivable $ 11 $ 8 $ 3 $ 11 $ 9 $ 2 Liabilities: Long-term debt * $ 3,428 $ 2,628 $ 800 $ 3,670 $ 2,675 $ 995 * 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 2016 2015 2014 December 31, 2016 Other investments $ - $ - $ 364 $ 364 $ 76 $ 189 $ 134 Investments in life settlements - - 736 736 397 540 201 Other assets - - 2 2 19 80 7 Total $ - $ - $ 1,102 $ 1,102 $ 492 $ 809 $ 342 December 31, 2015 Other investments $ - $ - $ 1,117 $ 1,117 Investments in life settlements - - 828 828 Other assets - - 129 129 Total $ - $ - $ 2,074 $ 2,074 |
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 December 31, 2016 Assets: Mortgage and other loans receivable $ - $ 161 $ 33,575 $ 33,736 $ 33,229 Other invested assets - 955 2,053 3,008 3,474 Short-term investments - 8,961 - 8,961 8,961 Cash 1,868 - - 1,868 1,868 Liabilities: Policyholder contract deposits associated with investment-type contracts - 382 121,742 122,124 112,705 Other liabilities - 4,196 - 4,196 4,196 Long-term debt - 23,117 3,333 26,450 27,484 December 31, 2015 Assets: Mortgage and other loans receivable $ - $ 198 $ 30,147 $ 30,345 $ 29,554 Other invested assets - 563 2,880 3,443 4,169 Short-term investments - 7,541 - 7,541 7,541 Cash 1,629 - - 1,629 1,629 Liabilities: Policyholder contract deposits associated with investment-type contracts - 309 117,537 117,846 108,788 Other liabilities - 2,852 - 2,852 2,852 Long-term debt - 21,686 4,528 26,214 25,579 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) December 31, 2016 Bonds available for sale: U.S. government and government sponsored entities $ 1,870 $ 148 $ (26) $ 1,992 $ - Obligations of states, municipalities and political subdivisions 24,025 1,001 (254) 24,772 - Non-U.S. governments 14,018 773 (256) 14,535 - Corporate debt 126,648 7,271 (1,739) 132,180 (31) Mortgage-backed, asset-backed and collateralized: RMBS 35,311 2,541 (478) 37,374 1,212 CMBS 14,054 409 (192) 14,271 45 CDO/ABS 16,315 278 (180) 16,413 39 Total mortgage-backed, asset-backed and collateralized 65,680 3,228 (850) 68,058 1,296 Total bonds available for sale (b) 232,241 12,421 (3,125) 241,537 1,265 Equity securities available for sale: Common stock 708 369 (12) 1,065 - Preferred stock 748 4 - 752 - Mutual funds 241 23 (3) 261 - Total equity securities available for sale 1,697 396 (15) 2,078 - Total $ 233,938 $ 12,817 $ (3,140) $ 243,615 $ 1,265 December 31, 2015 Bonds available for sale: U.S. government and government sponsored entities $ 1,698 $ 155 $ (9) $ 1,844 $ - Obligations of states, municipalities and political subdivisions 26,003 1,424 (104) 27,323 19 Non-U.S. governments 17,752 805 (362) 18,195 - Corporate debt 133,513 6,462 (3,987) 135,988 (87) Mortgage-backed, asset-backed and collateralized: RMBS 33,878 2,760 (411) 36,227 1,326 CMBS 13,139 561 (129) 13,571 185 CDO/ABS 14,985 360 (248) 15,097 39 Total mortgage-backed, asset-backed and collateralized 62,002 3,681 (788) 64,895 1,550 Total bonds available for sale (b) 240,968 12,527 (5,250) 248,245 1,482 Equity securities available for sale: Common stock 913 1,504 (16) 2,401 - Preferred stock 19 3 - 22 - Mutual funds 447 53 (8) 492 - Total equity securities available for sale 1,379 1,560 (24) 2,915 - Total $ 242,347 $ 14,087 $ (5,274) $ 251,160 $ 1,482 ( a ) Represents the amount of other-than-temporary impairments recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the fair value of such securities subsequent to the impairment measurement date. (b) At December 31, 2016 and 2015 , bonds available for sale held by us that were below investment grade or not rated totaled $ 33.6 billion and $ 34.9 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 December 31, 2016 Bonds available for sale: U.S. government and government sponsored entities $ 720 $ 26 $ - $ - $ 720 $ 26 Obligations of states, municipalities and political subdivisions 5,814 221 231 33 6,045 254 Non-U.S. governments 3,865 162 489 94 4,354 256 Corporate debt 28,184 1,013 6,080 726 34,264 1,739 RMBS 8,794 252 4,045 226 12,839 478 CMBS 4,469 152 479 40 4,948 192 CDO/ABS 5,362 102 1,961 78 7,323 180 Total bonds available for sale 57,208 1,928 13,285 1,197 70,493 3,125 Equity securities available for sale: Common stock 125 12 - - 125 12 Mutual funds 64 3 - - 64 3 Total equity securities available for sale 189 15 - - 189 15 Total $ 57,397 $ 1,943 $ 13,285 $ 1,197 $ 70,682 $ 3,140 December 31, 2015 Bonds available for sale: U.S. government and government sponsored entities $ 483 $ 9 $ 1 $ - $ 484 $ 9 Obligations of states, municipalities and political subdivisions 2,382 87 268 17 2,650 104 Non-U.S. governments 4,327 203 832 159 5,159 362 Corporate debt 41,317 2,514 5,428 1,473 46,745 3,987 RMBS 7,215 133 4,318 278 11,533 411 CMBS 4,138 108 573 21 4,711 129 CDO/ABS 7,064 104 2,175 144 9,239 248 Total bonds available for sale 66,926 3,158 13,595 2,092 80,521 5,250 Equity securities available for sale: Common stock 91 16 - - 91 16 Mutual funds 200 8 - - 200 8 Total equity securities available for sale 291 24 - - 291 24 Total $ 67,217 $ 3,182 $ 13,595 $ 2,092 $ 80,812 $ 5,274 |
The amortized cost and fair value of fixed maturity securities available for sale by contractual maturity | Total Fixed Maturity Securities Fixed Maturity Securities Available December 31, 2016 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 $ 7,796 $ 7,994 $ 604 $ 581 Due after one year through five years 49,200 51,958 6,002 5,841 Due after five years through ten years 43,308 44,226 16,045 15,332 Due after ten years 66,257 69,301 25,007 23,629 Mortgage-backed, asset-backed and collateralized 65,680 68,058 25,960 25,110 Total $ 232,241 $ 241,537 $ 73,618 $ 70,493 December 31, 2015 Due in one year or less $ 9,176 $ 9,277 $ 1,122 $ 1,103 Due after one year through five years 47,230 49,196 9,847 9,494 Due after five years through ten years 54,120 54,459 22,296 20,686 Due after ten years 68,440 70,418 26,235 23,755 Mortgage-backed, asset-backed and collateralized 62,002 64,895 26,271 25,483 Total $ 240,968 $ 248,245 $ 85,771 $ 80,521 |
The gross realized gains and gross realized losses from sales of AIG's available for sale securities | Years Ended December 31, 2016 2015 2014 Gross Gross Gross Gross Gross Gross Realized Realized Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Gains Losses Fixed maturity securities $ 801 $ 800 $ 517 $ 423 $ 703 $ 118 Equity securities 1,072 15 1,060 28 135 24 Total $ 1,873 $ 815 $ 1,577 $ 451 $ 838 $ 142 |
The fair value of AIG's other securities | December 31, 2016 December 31, 2015 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 2,939 20 % $ 3,369 19 % Obligations of states, municipalities and political subdivisions - - 75 - Non-U.S. governments 51 - 50 - Corporate debt 1,772 12 2,035 12 Mortgage-backed, asset-backed and collateralized : RMBS 2,025 14 2,230 13 CMBS 603 4 750 4 CDO/ABS and other collateralized * 6,608 47 8,273 47 Total mortgage-backed, asset-backed and collateralized 9,236 65 11,253 64 Total fixed maturity securities 13,998 97 16,782 95 Equity securities 482 3 921 5 Total $ 14,480 100 % $ 17,703 100 % * Inclu des $ 421 m illion and $ 712 m illion of U.S. Government agency backed ABS at December 31, 2016 and 2015 , respectively. |
Components of other invested assets | December 31, (in millions) 2016 2015 Alternative investments (a) (b) $ 13,379 $ 18,150 Investment real estate (c) 6,900 6,579 Aircraft asset investments (d) 321 477 Investments in life settlements 2,516 3,606 All other investments 1,422 982 Total $ 24,538 $ 29,794 (a) At December 31, 2016 , includes hedge funds of $ 7.2 billion, private equity funds of $ 5.5 billion, and affordable housing partnerships of $ 625 million. At December 31, 2015 , includes hedge funds of $ 10.9 billion, private equity funds of $ 6.5 billion, and affordable housing partnerships of $ 701 million. (b) Approximately 72 percent and 15 percent of our hedge fund portfolio is available for redemption in 2017 and 2018, respectively, an additional 7 percent will be available between 2019 and 2024. (c) Net of accumulated depreciation of $ 451 million and $ 668 million in 2016 and 2015 , respectively. (d) Consists of investments in aircraft equipment held in a consolidated trust. |
The carrying value and ownership percentage of AIA and equity method investments | 2016 2015 Carrying Ownership Carrying Ownership (in millions, except percentages) Value Percentage Value Percentage Equity method investments $ 10,756 Various $ 14,259 Various |
Schedule of information regarding investments in life settlements | December 31, 2016 Number of Carrying Face Value (dollars in millions) Contracts Value (Death Benefits) Remaining Life Expectancy of Insureds: 0 – 1 year 1 $ - $ - 1 – 2 years 5 5 10 2 – 3 years 16 6 14 3 – 4 years 43 43 93 4 – 5 years 148 171 404 Thereafter 3,235 2,291 9,266 Total 3,448 $ 2,516 $ 9,787 |
Components of net investment income | Years Ended December 31, (in millions) 2016 2015 2014 Fixed maturity securities, including short-term investments $ 11,645 $ 11,332 $ 12,322 Equity securities (5) 99 221 Interest on mortgage and other loans 1,526 1,417 1,272 Alternative investments * 693 1,120 2,070 Real estate 150 181 110 Other investments 509 432 601 Total investment income 14,518 14,581 16,596 Investment expenses 453 528 517 Net investment income $ 14,065 $ 14,053 $ 16,079 * Beginning in the first quarter of 2016, the presentation of income on alternative investments has been refined to include only income from hedge funds, private equity funds and affordable housing partnerships. Prior period disclosures have been reclassified to conform to this presentation. Hedge funds for which we elected the fair value option are recorded as of the balance sheet date. Other hedge funds are generally reported on a one-month lag, while private equity funds are generally reported o n a one-quarter lag. |
Components of net realized capital gains (losses) | Years Ended December 31, (in millions) 2016 2015 2014 Sales of fixed maturity securities $ 1 $ 94 $ 585 Sales of equity securities (a) 1,057 1,032 111 Other-than-temporary impairments: Severity (15) (13) (3) Change in intent (46) (233) (40) Foreign currency declines (18) (57) (19) Issuer-specific credit events (433) (348) (169) Adverse projected cash flows (47) (20) (16) Provision for loan losses 10 (58) (1) Foreign exchange transactions (1,226) 416 598 Derivatives and hedge accounting (944) 341 (177) Impairments on investments in life settlements (397) (540) (201) Other (b) 114 162 71 Net realized capital gains (losses) $ (1,944) $ 776 $ 739 (a) In 2016 and 2015 includes realized gains on the sale of a portion of our holdings in People’s Insurance Company (Group) of China Limited and PICC Property & Casualty Company Limited (collectively, our PICC Investment) . ( b) In 2016 , primarily includes $ 107 million of realized gains due to a purchase price adjustment on the sale of Class B shares of Prudential Financial, Inc. and losses of $ 253 million from the sale of a portion of our Life Settlements portfolio. In 2015 , primarily includes $ 357 million of realized gains due to the sale of common shares of SpringLeaf Holdings (now known as OneMain Holdings, Inc.) , $ 428 million of realized gains due to the sale of Class B shares of Prudential Financial, Inc. and $ 463 million of realized losses due to the sale of ordinary shares of AerCap . |
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments | Years Ended December 31, (in millions) 2016 2015 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ 2,019 $ (9,275) Equity securities (1,155) (929) Other investments (259) (803) Total increase (decrease) in unrealized appreciation (depreciation) of investments * $ 605 $ (11,007) * 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) 2016 2015 2014 Balance, beginning of year $ 1,747 $ 2,659 $ 3,872 Increases due to: Credit impairments on new securities subject to impairment losses 204 111 49 Additional credit impairments on previously impaired securities 212 109 85 Reductions due to: Credit impaired securities fully disposed of for which there was no prior intent or requirement to sell (296) (399) (613) Credit impaired securities for which there is a current intent or anticipated requirement to sell - 2 - Accretion on securities previously impaired due to credit * (767) (735) (725) Divested businesses (2) - - Other - - (9) Balance, end of year $ 1,098 $ 1,747 $ 2,659 * 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) $ 35,885 Cash flows expected to be collected * 29,314 Recorded investment in acquired securities 19,689 * 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) 2016 2015 Outstanding principal balance $ 16,728 $ 16,871 Amortized cost 11,987 12,303 Fair value 12,922 13,164 |
Activity for accretable yield on Purchased Credit Impaired (PCI) Securities | Years Ended December 31, (in millions) 2016 2015 Balance, beginning of year $ 6,846 $ 6,865 Newly purchased PCI securities 707 696 Disposals - (13) Accretion (842) (879) Effect of changes in interest rate indices 39 (251) Net reclassification from (to) non-accretable difference 748 428 Balance, end of year $ 7,498 $ 6,846 |
Schedule of fair value of securities pledged to counterparties under secured financing transactions | (in millions) December 31, 2016 December 31, 2015 Fixed maturity securities available for sale $ 2,389 $ 1,145 Other bond securities, at fair value 1,799 1,740 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total December 31, 2016 Other bond securities: Non-U.S. governments $ - $ - $ - $ 51 $ - $ 51 Corporate debt - 163 860 725 - 1,748 Total $ - $ 163 $ 860 $ 776 $ - $ 1,799 December 31, 2015 Bonds available for sale: Non-U.S. governments $ - $ 50 $ - $ - $ - $ 50 Other bond securities: Non-U.S. governments - - - 49 - 49 Corporate debt - 33 332 1,326 - 1,691 Total $ - $ 83 $ 332 $ 1,375 $ - $ 1,790 Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total December 31, 2016 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ 21 $ - $ - $ - $ 21 Non-U.S. governments - - 50 - - 50 Corporate debt - 791 1,466 - - 2,257 CMBS - - 61 - - 61 Total $ - $ 812 $ 1,577 $ - $ - $ 2,389 December 31, 2015 Bonds available for sale: Non-U.S. governments $ - $ - $ 57 $ - $ - $ 57 Corporate debt - - 914 - - 914 RMBS - - - 124 - 124 Total $ - $ - $ 971 $ 124 $ - $ 1,095 |
Schedule of fair value of securities pledged to the entity under reverse repurchase agreements | (in millions) December 31, 2016 December 31, 2015 Securities collateral pledged to us $ 1,434 $ 1,742 Amount sold or repledged by us 11 - |
Investment [Line Items] | |
Summarized financial information of AIG's equity method investees | Years Ended December 31, (in millions) 2016 2015 2014 Operating results: Total revenues $ 9,512 $ 22,055 $ 29,579 Total expenses (7,361) (3,898) (7,828) Net income $ 2,151 $ 18,157 $ 21,751 At December 31, (in millions) 2016 2015 Balance sheet: Total assets $ 158,306 $ 201,007 Total liabilities $ (37,336) $ (33,424) |
LENDING ACTIVITIES (Tables)
LENDING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
LENDING ACTIVITIES | |
Composition of Mortgages and other loans receivable | December 31, December 31, (in millions) 2016 2015 Commercial mortgages * $ 25,042 $ 22,067 Residential mortgages 3,828 2,758 Life insurance policy loans 2,367 2,597 Commercial loans, other loans and notes receivable 2,300 2,451 Total mortgage and other loans receivable 33,537 29,873 Allowance for credit losses (297) (308) Mortgage and other loans receivable, net $ 33,240 $ 29,565 * Commercial mortgages primarily represent loans for o ffice s , apartments and retail , with exposures in New York and California representing the largest geographic concentrations ( aggregating approximately 24 percent and 12 percent, respectively, at December 31, 2016 , and 22 percent and 12 percent, respectively, at December 31, 2015 ) . Nonperforming loans are generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming mortgages were not significant for all periods presented. |
Schedule of debt service coverage ratio and loan-to-value ratio for the commercial mortgage loans | The following table presents debt service coverage ratios and loan-to-value ratios for commercial mortgages: Debt Service Coverage Ratios (a) (in millions) >1.20X 1.00X - 1.20X <1.00X Total December 31, 2016 Loan-to-Value Ratios (b) Less than 65% $ 13,998 $ 1,694 $ 232 $ 15,924 65% to 75% 5,946 575 62 6,583 76% to 80% 1,246 174 47 1,467 Greater than 80% 471 392 205 1,068 Total commercial mortgages $ 21,661 $ 2,835 $ 546 $ 25,042 December 31, 2015 Loan-to-Value Ratios (b) Less than 65% $ 10,283 $ 1,704 $ 150 $ 12,137 65% to 75% 6,361 611 45 7,017 76% to 80% 1,370 169 81 1,620 Greater than 80% 646 226 421 1,293 Total commercial mortgages $ 18,660 $ 2,710 $ 697 $ 22,067 (a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. (b) The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. |
Schedule of credit quality indicators for the commercial mortgage loans | Number Percent December 31, 2016 of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total (c) Total $ Credit Quality Performance Indicator: In good standing 784 $ 6,005 $ 7,830 $ 5,179 $ 1,898 $ 2,373 $ 1,589 $ 24,874 99 % Restructured (a) 4 - 134 18 - 16 - 168 1 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure - - - - - - - - - Total (b) 788 $ 6,005 $ 7,964 $ 5,197 $ 1,898 $ 2,389 $ 1,589 $ 25,042 100 % Allowance for credit losses: Specific - 3 1 6 1 - 11 - % General 35 72 41 7 13 15 183 1 Total allowance for credit losses $ 35 $ 75 $ 42 $ 13 $ 14 $ 15 $ 194 1 % December 31, 2015 (dollars in millions) Credit Quality Performance Indicator: In good standing 830 $ 3,916 $ 7,484 $ 4,809 $ 1,902 $ 2,082 $ 1,435 $ 21,628 98 % Restructured (a) 9 - 156 25 6 16 6 209 1 90 days or less delinquent 1 - - 4 - - - 4 - >90 days delinquent or in process of foreclosure 9 3 205 - 6 - 12 226 1 Total (b) 849 $ 3,919 $ 7,845 $ 4,838 $ 1,914 $ 2,098 $ 1,453 $ 22,067 100 % Allowance for credit losses: Specific $ - $ 16 $ 1 $ 6 $ 1 $ - $ 24 - % General 35 47 29 8 15 13 147 1 Total allowance for credit losses $ 35 $ 63 $ 30 $ 14 $ 16 $ 13 $ 171 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 credit losses . (c) 100 percent of the commercial mortgages held at such respective dates were current as to payments of principal and interest. There were no significant amounts of nonperforming commercial mortgages (defined as those loans where payment of contractual principal or interest is more than 90 days past due) during any of the periods presented. |
Schedule of changes in the allowance for losses on Mortgage and other loans receivable | 2016 2015 2014 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 $ 171 $ 137 $ 308 $ 159 $ 112 $ 271 $ 201 $ 111 $ 312 Loans charged off (13) (2) (15) (23) (6) (29) (29) (39) (68) Recoveries of loans previously charged off 11 - 11 4 1 5 18 16 34 Net charge-offs (2) (2) (4) (19) (5) (24) (11) (23) (34) Provision for loan losses 25 (32) (7) 31 27 58 (31) 23 (8) Other - - - - 3 3 - 1 1 Allowance, end of year $ 194 * $ 103 $ 297 $ 171 * $ 137 $ 308 $ 159 * $ 112 $ 271 * Of the total allowance at the end of the year , $ 11 million, $ 24 million and $55 million relates to individually assessed credit losses on $ 280 million , $ 507 million and $192 million of commercial mortgages as of December 31, 2016 , 2015 and 2014 , respectively. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Effects of Reinsurance [Line Items] | |
Supplemental information for gross loss and benefit reserves net of ceded reinsurance | At December 31, 2016 2015 As Net of As Net of (in millions) Reported Reinsurance Reported Reinsurance Liability for unpaid losses and loss adjustment expenses $ (77,077) $ (61,545) $ (74,942) $ (60,603) Future policy benefits for life and accident and health insurance contracts (42,204) (41,140) (43,585) (42,506) Reserve for unearned premiums (19,634) (16,280) (21,318) (18,380) Reinsurance assets (a) 19,950 18,356 (a ) 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) 2016 2015 2014 Long-duration insurance in force ceded $ 174,363 $ 177,025 $ 180,178 |
Short-Duration Reinsurance | |
Effects of Reinsurance [Line Items] | |
Schedule of insurance premiums written and earned | Years Ended December 31, (in millions) 2016 2015 2014 Premiums written: Direct $ 33,970 $ 37,698 $ 39,375 Assumed 2,824 2,972 3,399 Ceded (7,561) (7,604) (8,318) Net $ 29,233 $ 33,066 $ 34,456 Premiums earned: Direct $ 34,869 $ 37,105 $ 38,707 Assumed 2,962 2,659 3,258 Ceded (7,284) (7,593) (8,140) Net $ 30,547 $ 32,171 $ 33,825 |
Long-Duration Reinsurance | |
Effects of Reinsurance [Line Items] | |
Schedule of insurance premiums written and earned | Years Ended December 31, (in millions) 2016 2015 2014 Gross premiums $ 4,732 $ 5,240 $ 4,070 Ceded premiums (789) (756) (661) Net $ 3,943 $ 4,484 $ 3,409 |
DEFERRED POLICY ACQUISITION C50
DEFERRED POLICY ACQUISITION COSTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
DEFERRED POLICY ACQUISITION COSTS | |
Rollforward of DAC | Years Ended December 31, (in millions) 2016 2015 2014 Balance, beginning of year $ 11,115 $ 9,828 $ 9,436 Dispositions (110) - - Acquisition costs deferred 5,216 5,825 5,919 Amortization expense (4,521) (5,236) (5,330) Change in net unrealized gains (losses) on securities (259) 848 (360) Other, including foreign exchange 72 (150) 163 Reclassified to Assets held for sale (471) - - Balance, end of year * $ 11,042 $ 11,115 $ 9,828 Supplemental Information: VOBA amortization expense included in DAC amortization 40 64 17 VOBA, end of year included in DAC balance 393 453 510 * Net of reductions in DAC of $ 842 m illion, $ 583 million , and $ 1.4 billion at December 31, 2016 , 2015 and 2014 , 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, 2016 | |
Variable Interest Entity Primary Beneficiary | |
Variable Interest Entities [Line Items] | |
Schedule of Variable Interest Entities | (in millions) Real Estate and Investment Entities (c) Securitization Vehicles Structured Investment Vehicle Affordable Housing Partnerships Other Total December 31, 2016 Assets: Bonds available for sale $ - $ 10,233 $ - $ - $ - $ 10,233 Other bond securities - 4,858 266 - 5 5,129 Mortgage and other loans receivable 1 1,442 - - 104 1,547 Other invested assets 1,052 321 - 2,821 28 4,222 Other (a) 365 1,104 50 384 92 1,995 Total assets (b) $ 1,418 $ 17,958 $ 316 $ 3,205 $ 229 $ 23,126 Liabilities: Long-term debt $ 444 $ 771 $ 56 $ 1,696 $ 6 $ 2,973 Other (d) 224 203 1 211 38 677 Total liabilities $ 668 $ 974 $ 57 $ 1,907 $ 44 $ 3,650 December 31, 2015 Assets: Bonds available for sale $ - $ 10,309 $ - $ - $ 15 $ 10,324 Other bond securities - 5,756 387 - 24 6,167 Mortgage and other loans receivable 1 1,960 - - 132 2,093 Other invested assets 489 477 - 2,608 24 3,598 Other (a) 29 1,349 94 293 159 1,924 Total assets (b) $ 519 $ 19,851 $ 481 $ 2,901 $ 354 $ 24,106 Liabilities: Long-term debt $ - $ 1,025 $ 53 $ 1,513 $ 6 $ 2,597 Other (d) 34 236 1 214 71 556 Total liabilities $ 34 $ 1,261 $ 54 $ 1,727 $ 77 $ 3,153 (a) C omprised primarily of Short-term investments and Other assets at December 31, 2016 and 2015 . ( b ) The assets of each VIE can be used only to settle specific obligations of that VIE. ( c ) At December 31 , 2016 and 2015 , off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $ 106 million and $ 131 million, respectively. ( d ) Comprised primarily of Other liabilities and Derivative liabilities, at fair value , at December 31, 2016 and 2015 . |
Variable Interest Entity Not Primary Beneficiary | |
Variable Interest Entities [Line Items] | |
Schedule of Variable Interest Entities | Maximum Exposure to Loss Total VIE On-Balance Off-Balance (in millions) Assets Sheet (a) Sheet Total December 31, 2016 Real estate and investment entities (d) $ 409,087 $ 11,015 $ 2,115 $ 13,130 Affordable housing partnerships 4,709 785 - 785 Other 2,869 314 1,045 (b) 1,359 Total (c) $ 416,665 $ 12,114 $ 3,160 $ 15,274 December 31, 2015 Real estate and investment entities (d) $ 21,951 $ 3,072 $ 398 $ 3,470 Affordable housing partnerships 5,255 774 - 774 Other 1,110 215 1,000 (b) 1,215 Total $ 28,316 $ 4,061 $ 1,398 $ 5,459 (a) At December 31, 2016 and 2015 , $ 11.7 billion and $ 3.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (b) These amounts represent our estimate of the maximum exposure to loss under certain insurance policies issued to VIEs if a hypothetical loss occurred to the extent of the full amount of the insured value. Our insurance policies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet. (c) As discussed in Note 2 , on January 1, 2016, we adopted accounting guidance that resulted in an increase in the number of our investment entities classified as VIEs. (d) Comprised primarily of hedge funds and private equity funds. |
DERIVATIVES AND HEDGE ACCOUNT52
DERIVATIVES AND HEDGE ACCOUNTING (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
Notional amounts and fair values of derivative instruments | December 31, 2016 December 31, 2015 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Notional Fair Notional Fair Notional Fair Notional Fair (in millions) Amount Value Amount Value Amount Value Amount Value Derivatives designated as hedging instruments: (a) Interest rate contracts $ 175 $ - $ 782 $ 11 $ 301 $ 1 $ 725 $ 2 Foreign exchange contracts 3,527 385 2,602 184 2,903 207 914 56 Equity contracts - - 113 7 - - 121 23 Derivatives not designated as hedging instruments: (a) Interest rate contracts 51,030 2,328 44,211 3,066 45,846 3,161 65,733 2,197 Foreign exchange contracts 9,468 935 7,674 1,185 9,472 559 8,900 1,148 Equity contracts 14,060 305 8,633 12 6,656 177 5,028 45 Commodity contracts - - - - - - - - Credit contracts (b) 4 2 861 331 4 3 1,289 508 Other contracts (c) 37,633 22 62 6 37,586 23 203 69 Total derivatives, gross $ 115,897 $ 3,977 $ 64,938 $ 4,802 $ 102,768 $ 4,131 $ 82,913 $ 4,048 Counterparty netting (d) (1,265) (1,265) (1,268) (1,268) Cash collateral (e) (903) (1,521) (1,554) (760) Total derivatives on consolidated balance sheets (f) $ 1,809 $ 2,016 $ 1,309 $ 2,020 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b ) As of December 31, 2016 and 2015 , included CDSs on super senior multi-sector CDOs with a net notional amount of $ 0.8 billion and $ 1.1 billion (fair value liability of $ 308 million and $ 483 million), respectively. The expected weighted average maturity as of December 31, 2016 is six years. Because of long-term maturities of the CDSs in the 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 portfolio. As of December 31, 2016 and 2015 , there were no super senior corporate debt/CLOs remaining. (c) Consists primarily of stable value wraps and contracts with multiple underlying exposures . (d) Represents netting of derivative exposures covered by a qualifying master netting agreement. (e) Represents cash collateral posted and received that is eligible for netting. (f) Freestanding derivatives only, excludes Embedded derivatives. Derivative instrument assets and liabilities are recorded in Other Assets and Liabilities, respectively. Fair value of assets related to bifurcated Embedded derivatives was zero at both December 31, 2016 and December 31, 2015 . Fair val ue of liabilities related to bifurcated Embedded derivatives was $ 3.1 billion and $ 2.3 billion, respectively, at December 31, 2016 and December 31, 2015 . A bifurcated Embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in variable annuity products, which include equity and interest rate components. |
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, 2016 Interest rate contracts : Realized capital gains/(losses) $ (7) $ 1 $ 1 $ - $ (7) Interest credited to policyholder account balances - - - - - Other income - 10 - - 10 Gain/(Loss) on extinguishment of debt - - - - - Foreign exchange contracts : Realized capital gains/(losses) 294 (335) - (41) - Interest credited to policyholder account balances - - - - - Other income - 24 - - 24 Gain/(Loss) on extinguishment of debt - - - - - Equity contracts : Realized capital gains/(losses) 10 (11) - (1) - Year ended December 31, 2015 Interest rate contracts : Realized capital gains $ - $ 1 $ 1 $ - $ - Interest credited to policyholder account balances - - - - - Other income - 9 - - 9 Gain/(Loss) on extinguishment of debt - 14 - - 14 Foreign exchange contracts : Realized capital gains 202 (167) - 32 3 Interest credited to policyholder account balances - (1) - - (1) Other income - 17 - - 17 Gain/(Loss) on extinguishment of debt - 17 - - 17 Equity contracts : Realized capital gains/(losses) (45) 45 - - - 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) - (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 h edge relationship. |
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) 2016 2015 2014 By Derivative Type: Interest rate contracts $ (229) $ 339 $ 851 Foreign exchange contracts 293 416 309 Equity contracts (902) (182) (274) Commodity contracts - (1) (1) Credit contracts 81 186 263 Other contracts 80 69 192 Embedded derivatives (48) 49 (841) Total $ (725) $ 876 $ 499 By Classification: Policy fees $ 80 $ 78 $ - Net investment income 26 26 102 Net realized capital gains (losses) (895) 365 (219) Other income 63 401 599 Policyholder benefits and claims incurred 1 6 17 Total $ (725) $ 876 $ 499 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill Disclosure | |
Schedule of changes in goodwill by reportable segment | Liability and Property and Life Personal Other Legacy (in millions) Financial Lines Special Risks Insurance Insurance Operations Portfolio Total Balance at January 1, 2014: Goodwill - gross $ 1,675 $ 623 $ - $ 2,472 $ - $ 182 $ 4,952 Accumulated impairments (797) (392) - (2,211) - (77) (3,477) Net goodwill 878 231 - 261 - 105 1,475 Increase (decrease) due to: Acquisition - - 21 - 7 - 28 Other (49) - - - - - (49) Balance at December 31, 2014: Goodwill - gross 1,626 623 21 2,472 7 182 4,931 Accumulated impairments (797) (392) - (2,211) - (77) (3,477) Net goodwill 829 231 21 261 7 105 1,454 Increase (decrease) due to: Acquisition - 96 55 - 20 37 208 Other (50) - 1 - - - (49) Balance at December 31, 2015: Goodwill - gross 1,576 719 77 2,472 27 219 5,090 Accumulated impairments (797) (392) - (2,211) - (77) (3,477) Net goodwill 779 327 77 261 27 142 1,613 Increase (decrease) due to: Dispositions - (12) - - - - (12) Other (137) 67 - - - (3) (73) Balance at December 31, 2016: Goodwill - gross 1,439 774 77 2,472 27 216 5,005 Accumulated impairments (797) (392) - (2,211) - (77) (3,477) Net goodwill $ 642 $ 382 $ 77 $ 261 $ 27 $ 139 $ 1,528 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 Liability for unpaid loss and loss adjustment expenses, beginning of year $ 74,942 $ 77,260 $ 81,547 Reinsurance recoverable (14,339) (15,648) (17,231) Net Liability for unpaid loss and loss adjustment expenses, beginning of year 60,603 61,612 64,316 Foreign exchange effect (463) (1,429) (1,061) Dispositions (a) (1,058) - - Changes in net liability for unpaid losses and loss adjustment expenses due to retroactive asbestos reinsurance transaction - 20 141 Total 59,082 60,203 63,396 Losses and loss adjustment expenses incurred : Current year 20,232 20,308 21,279 Prior years, excluding discount 5,788 4,119 703 Prior years, discount charge (benefit) (422) (71) 478 Total losses and loss adjustment expenses incurred 25,598 24,356 22,460 Losses and loss adjustment expenses paid * : Current year (5,825) (5,751) (6,358) Prior years (16,908) (18,205) (17,886) Total losses and loss adjustment expenses paid (22,733) (23,956) (24,244) Reclassified to liabilities held for sale (b) (402) - - Liability for unpaid loss and loss adjustment expenses, end of year: Net liability for unpaid losses and loss adjustment expenses 61,545 60,603 61,612 Reinsurance recoverable 15,532 14,339 15,648 Total $ 77,077 $ 74,942 $ 77,260 (a) Includes amounts related to dispositions through the date of disposition. Includes sale of UGC and Ascot. (b) Represents loss reserves included in our pending sale of certain of our insurance operations to Fairfax. Upon consummation of the sale, we may retain a portion of these reserves through reinsurance arrangements. |
Reconciliation of Claims Development to Liability | Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below Gross liability for unpaid losses and loss adjustment expenses (in millions) Commercial Insurance: Liability and Financial Lines U.S. Workers' compensation (before discount) $ 13,069 $ 2,879 $ 15,948 U.S. Excess casualty 8,749 1,115 9,864 U.S. Other casualty 8,746 3,209 11,955 U.S. Financial lines 6,102 1,195 7,297 Europe Casualty and Financial lines 5,587 1,313 6,900 Total Liability and Financial Lines 42,253 9,711 51,964 Property and Special Risks: U.S. and Europe 5,913 1,596 7,509 Total Property and Special Risks 5,913 1,596 7,509 Total Commercial Insurance 48,166 11,307 59,473 Consumer - Personal insurance U.S., Europe and Japan 3,454 377 3,831 Total Consumer - Personal Insurance 3,454 377 3,831 Legacy Portfolio - Run-Off Property and Casualty Insurance Lines U.S. Long Tail Insurance lines (before discount) 5,967 1,679 7,646 Total Legacy Portfolio Run-Off Property and Casualty Insurance Lines 5,967 1,679 7,646 Total $ 57,587 $ 13,363 $ 70,950 Other Reconciling Items Discount on workers compensation lines (3,570) Other product lines 6,192 Unallocated loss adjustment expenses 3,505 Total $ 77,077 |
Schedule of undiscounted, incurred and paid losses and allocated loss adjustment expenses by accident year | The following tables present undiscounted, incurred and paid losses and allocated loss adjustment expenses by accident year, on a net basis after reinsurance, for 10 years: U.S. Workers' Compensation Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2016 Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2007 $ 4,505 $ 4,441 $ 4,414 $ 4,544 $ 4,528 $ 4,513 $ 4,469 $ 4,379 $ 4,395 $ 4,548 $ 153 $ 392 225,243 2008 4,114 4,184 4,422 4,425 4,471 4,398 4,385 4,398 4,547 149 504 198,597 2009 3,466 3,633 3,608 3,666 3,639 3,616 3,606 3,733 127 547 147,209 2010 2,706 3,049 3,125 3,148 3,211 3,214 3,311 97 550 132,987 2011 2,901 2,953 3,091 3,158 3,113 3,152 39 521 124,486 2012 2,382 2,194 2,286 2,260 2,334 74 571 70,426 2013 1,932 1,880 1,950 2,060 110 645 46,175 2014 1,729 1,764 1,916 152 807 39,000 2015 1,708 1,864 156 1,027 34,241 2016 1,299 965 25,164 Total $ 28,764 $ 1,057 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (19,124) - Liabilities for losses and loss adjustment expenses and prior year development before 2007, net of reinsurance 3,429 850 Unallocated loss adjustment expense prior year development - 13 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 13,069 $ 1,920 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited 2007 $ 926 $ 1,856 $ 2,452 $ 2,844 $ 3,122 $ 3,359 $ 3,577 $ 3,665 $ 3,773 $ 3,855 2008 785 1,678 2,252 2,655 3,044 3,272 3,476 3,609 3,707 2009 630 1,328 1,756 2,120 2,390 2,621 2,780 2,887 2010 550 1,093 1,537 1,855 2,126 2,288 2,426 2011 519 1,129 1,561 1,884 2,129 2,285 2012 415 804 1,089 1,272 1,440 2013 282 619 879 1,067 2014 231 558 786 2015 234 524 2016 147 Total $ 19,124 U.S. Excess Casualty Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2016 Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2007 $ 1,854 $ 1,820 $ 1,752 $ 2,246 $ 2,072 $ 2,232 $ 2,208 $ 2,183 $ 2,113 $ 2,194 $ 81 $ 228 6,423 2008 1,979 2,000 2,173 1,951 1,832 1,884 1,721 1,667 1,638 (29) 228 4,561 2009 1,851 1,920 1,812 1,650 1,465 1,328 1,418 1,520 102 224 3,689 2010 1,885 2,094 2,091 1,782 1,649 1,736 1,722 (14) 399 3,459 2011 1,784 1,824 1,595 1,427 1,528 1,611 83 425 3,368 2012 1,604 1,400 1,239 1,486 1,566 80 621 3,252 2013 1,096 998 1,136 1,276 140 672 2,494 2014 873 996 1,185 189 788 1,791 2015 913 1,380 467 972 1,325 2016 810 748 540 Total $ 14,902 $ 1,099 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (7,690) - Liabilities for losses and loss adjustment expenses and prior year development before 2007, net of reinsurance 1,537 26 Unallocated loss adjustment expense prior year development - (67) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 8,749 $ 1,058 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited 2007 $ 8 $ 102 $ 301 $ 732 $ 1,085 $ 1,402 $ 1,613 $ 1,712 $ 1,796 $ 1,857 2008 11 97 439 667 842 954 1,061 1,172 1,226 2009 8 69 249 449 624 788 965 1,175 2010 10 197 475 654 795 946 1,052 2011 5 63 225 387 716 921 2012 3 106 288 495 649 2013 15 105 206 386 2014 3 70 211 2015 9 196 2016 17 Total $ 7,690 U.S. Other Casualty Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2016 Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2007 $ 2,892 $ 2,633 $ 2,615 $ 2,736 $ 2,770 $ 2,805 $ 2,787 $ 2,774 $ 2,846 $ 2,874 $ 28 $ 166 102,070 2008 2,886 2,693 2,757 2,821 2,901 2,903 3,007 3,074 3,113 39 274 116,937 2009 2,343 2,445 2,513 2,509 2,624 2,745 2,807 2,791 (16) 151 89,845 2010 2,037 2,016 2,160 2,109 2,258 2,301 2,420 119 329 95,749 2011 1,970 2,222 2,321 2,458 2,601 2,639 38 381 74,916 2012 1,866 2,049 2,172 2,183 2,325 142 381 41,586 2013 1,580 1,702 1,882 2,116 234 570 36,174 2014 1,695 1,677 1,920 243 749 33,677 2015 1,274 1,607 333 909 29,372 2016 1,280 1,044 19,774 Total $ 23,085 $ 1,160 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (15,844) - Liabilities for losses and loss adjustment expenses and prior year development before 2007, net of reinsurance 1,505 287 Unallocated loss adjustment expense prior year development 116 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 8,746 $ 1,563 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited 2007 $ 386 $ 773 $ 1,206 $ 1,621 $ 1,974 $ 2,244 $ 2,377 $ 2,422 $ 2,525 $ 2,577 2008 277 711 1,171 1,691 2,039 2,316 2,506 2,651 2,755 2009 378 770 1,180 1,577 1,929 2,168 2,314 2,534 2010 279 578 902 1,275 1,557 1,741 1,889 2011 235 726 1,109 1,488 1,822 2,048 2012 382 712 1,002 1,349 1,644 2013 169 553 918 1,206 2014 204 566 816 2015 93 303 2016 72 Total $ 15,844 U.S. Financial Lines Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2016 Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2007 $ 1,900 $ 2,091 $ 2,079 $ 2,015 $ 2,022 $ 2,008 $ 1,964 $ 1,932 $ 1,972 $ 1,968 $ (4) $ 74 19,088 2008 1,911 2,084 2,049 1,861 1,970 1,906 1,964 2,089 2,112 23 32 21,709 2009 1,719 1,806 1,855 1,909 2,102 2,203 2,196 2,289 93 34 22,595 2010 1,576 1,526 1,420 1,381 1,373 1,470 1,485 15 46 20,126 2011 1,812 1,729 1,897 1,887 1,921 1,951 30 66 20,008 2012 1,579 1,747 1,782 1,889 1,942 53 199 20,029 2013 1,741 1,669 1,622 1,567 (55) 417 18,912 2014 1,742 1,712 1,775 63 612 17,091 2015 1,670 1,689 19 1,045 15,386 2016 1,599 1,392 14,001 Total $ 18,377 $ 237 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (12,686) - Liabilities for losses and loss adjustment expenses and prior year development before 2007, net of reinsurance 411 32 Unallocated loss adjustment expense prior year development - 37 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 6,102 $ 306 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited 2007 $ 61 $ 413 $ 816 $ 1,184 $ 1,364 $ 1,531 $ 1,684 $ 1,748 $ 1,800 $ 1,811 2008 32 420 888 1,183 1,385 1,590 1,712 1,898 2,001 2009 129 499 887 1,273 1,614 1,839 1,968 2,075 2010 31 285 566 800 1,017 1,180 1,281 2011 165 494 886 1,210 1,529 1,749 2012 76 406 815 1,253 1,497 2013 43 333 687 949 2014 66 371 854 2015 66 393 2016 76 Total $ 12,686 Europe Casualty and Financial Lines Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2016 Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2007 $ 1,047 $ 1,073 $ 1,084 $ 1,057 $ 1,094 $ 1,088 $ 1,167 $ 1,171 $ 1,178 $ 1,184 $ 6 $ 14 191,746 2008 1,311 1,396 1,424 1,401 1,424 1,430 1,458 1,420 1,426 6 53 238,417 2009 1,539 1,627 1,659 1,661 1,689 1,699 1,704 1,759 55 78 232,281 2010 1,300 1,258 1,255 1,277 1,218 1,252 1,250 (2) 103 265,264 2011 1,239 1,175 1,239 1,284 1,364 1,377 13 157 256,431 2012 1,074 1,041 1,005 1,081 1,146 65 172 209,632 2013 1,080 1,124 1,109 1,124 15 182 176,010 2014 1,143 1,123 1,166 43 376 164,208 2015 1,204 1,363 159 736 175,571 2016 1,407 1,029 178,185 Total $ 13,202 $ 360 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (8,005) - Liabilities for losses and loss adjustment expenses and prior year development before 2007, net of reinsurance 390 (7) Unallocated loss adjustment expense prior year development - 2 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 5,587 $ 355 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited 2007 $ 88 $ 297 $ 454 $ 632 $ 765 $ 846 $ 961 $ 996 $ 1,025 $ 1,067 2008 116 429 655 870 1,014 1,128 1,199 1,242 1,304 2009 125 379 645 881 1,033 1,156 1,309 1,421 2010 133 378 570 725 850 936 995 2011 127 339 507 733 868 985 2012 110 303 438 615 734 2013 95 340 493 664 2014 79 273 447 2015 74 261 2016 127 Total $ 8,005 U.S. and Europe Property and Special Risks Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2016 Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2007 $ 2,259 $ 2,061 $ 2,153 $ 2,119 $ 2,087 $ 2,073 $ 2,073 $ 2,069 $ 2,072 $ 2,070 $ (2) $ 34 88,737 2008 4,114 4,360 4,318 4,276 4,225 4,169 4,140 4,132 4,124 (8) 31 95,060 2009 2,608 2,320 2,318 2,327 2,282 2,285 2,265 2,272 7 32 79,096 2010 3,014 2,747 2,687 2,710 2,716 2,684 2,692 8 25 78,713 2011 3,757 3,586 3,514 3,511 3,491 3,532 41 47 79,542 2012 4,154 4,285 4,232 4,216 4,329 113 76 71,951 2013 2,837 2,877 2,715 2,781 66 138 69,782 2014 3,307 3,154 3,244 90 235 81,948 2015 3,568 3,607 39 500 82,836 2016 3,633 921 61,956 Total $ 32,284 $ 354 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (26,468) - Liabilities for losses and loss adjustment expenses and prior year development before 2007, net of reinsurance 97 6 Unallocated loss adjustment expense prior year development - 42 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 5,913 $ 402 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited 2007 $ 520 $ 1,294 $ 1,629 $ 1,784 $ 1,880 $ 1,930 $ 1,962 $ 1,982 $ 2,006 $ 2,007 2008 1,455 3,029 3,600 3,825 3,970 4,013 4,030 4,046 4,064 2009 661 1,438 1,780 1,985 2,097 2,156 2,184 2,206 2010 828 1,849 2,207 2,396 2,496 2,570 2,612 2011 1,049 2,400 2,924 3,134 3,284 3,370 2012 878 2,794 3,458 3,789 3,995 2013 771 1,775 2,128 2,328 2014 951 2,076 2,547 2015 1,094 2,255 2016 1,084 Total $ 26,468 U.S., Europe and Japan Personal Insurance Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2016 Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2007 $ 4,662 $ 4,805 $ 4,725 $ 4,710 $ 4,729 $ 4,739 $ 4,742 $ 4,742 $ 4,745 $ 4,744 $ (1) $ 4 1,737,033 2008 4,535 4,592 4,592 4,611 4,618 4,621 4,625 4,631 4,630 (1) 9 1,851,828 2009 4,698 4,634 4,590 4,624 4,616 4,614 4,612 4,611 (1) 7 1,959,522 2010 4,819 4,826 4,846 4,836 4,838 4,832 4,832 - 13 2,215,816 2011 5,226 5,315 5,275 5,272 5,258 5,250 (8) 25 2,159,211 2012 5,135 5,028 4,998 4,956 4,943 (13) 15 2,096,881 2013 4,714 4,640 4,602 4,576 (26) 52 2,023,707 2014 4,376 4,392 4,376 (16) 126 2,008,729 2015 4,433 4,385 (48) 276 1,949,211 2016 4,426 902 1,702,448 Total $ 46,773 $ (114) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (43,345) - Liabilities for losses and loss adjustment expenses and prior year development before 2007, net of reinsurance 26 (3) Unallocated loss adjustment expense prior year development - 3 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 3,454 $ (114) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited 2007 $ 2,867 $ 4,162 $ 4,395 $ 4,547 $ 4,628 $ 4,670 $ 4,699 $ 4,717 $ 4,727 $ 4,731 2008 2,781 3,958 4,275 4,432 4,511 4,557 4,584 4,596 4,608 2009 2,780 4,016 4,268 4,428 4,504 4,545 4,570 4,587 2010 2,920 4,184 4,496 4,643 4,721 4,764 4,788 2011 3,270 4,631 4,927 5,064 5,146 5,182 2012 2,868 4,333 4,624 4,774 4,858 2013 2,671 3,963 4,261 4,408 2014 2,495 3,708 4,024 2015 2,497 3,712 2016 2,447 Total $ 43,345 U.S. Run-Off Long Tail Insurance lines Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (dollars in millions) December 31, 2016 Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2007 $ 959 $ 743 $ 807 $ 801 $ 833 $ 843 $ 851 $ 859 $ 860 $ 876 $ 16 $ 55 56,148 2008 936 1,025 872 855 895 911 964 961 967 6 75 40,046 2009 543 523 532 566 621 588 584 564 (20) 91 16,213 2010 633 521 527 548 576 572 601 29 81 8,475 2011 528 538 571 635 669 678 9 88 7,776 2012 623 674 736 781 745 (36) 105 4,033 2013 477 530 585 566 (19) 152 2,483 2014 374 472 451 (21) 192 2,246 2015 434 520 86 204 2,154 2016 292 197 1,483 Total $ 6,260 $ 50 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below (4,171) - Liabilities for losses and loss adjustment expenses and prior year development before 2007, net of reinsurance 3,878 345 Unallocated loss adjustment expense prior year development - (5) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 5,967 $ 390 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (dollars in millions) Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited 2007 $ 145 $ 230 $ 321 $ 431 $ 578 $ 641 $ 710 $ 751 $ 770 $ 784 2008 130 360 485 559 643 711 773 817 830 2009 38 125 220 273 354 394 414 431 2010 55 142 235 313 395 425 445 2011 19 135 253 379 442 525 2012 85 191 282 409 476 2013 86 152 258 316 2014 20 93 183 2015 34 129 2016 52 Total $ 4,171 Prior Year Development before 2007 The previous development tables include only accident years 2007 to 2016. The following table summarizes development, (favorable) or unfavorable, of incurred losses and loss adjustment expenses for accident year 2006 and prior by operating segment and major class of business: Years Ended December 31, (in millions) 2016 2015 2014 2006 and prior accident year development by major class of business and driver of development: U.S. Workers Compensation $ 850 $ 122 $ 158 U.S. Excess Casualty 26 476 437 U.S. Other Casualty 287 366 242 U.S. Financial Lines 32 135 (24) Property and Special Risks 6 16 (4) Legacy Portfolio 345 621 258 All Other (2) 62 3 Total $ 1,544 $ 1,798 $ 1,070 |
Schedule of historical average annual percentage claims payout on an accident year basis | Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 8 9 10 U.S. Workers' compensation 15.5 % 17.8 % 12.6 % 9.2 % 7.5 % 5.2 % 4.4 % 2.6 % 2.3 % 1.8 % U.S. Excess casualty 0.7 6.8 12.4 13.5 12.8 10.7 8.5 8.4 3.5 2.8 U.S. Other casualty 10.3 15.2 14.4 14.8 12.2 8.6 5.5 4.7 3.5 1.8 U.S. Financial lines 4.0 17.6 21.2 17.3 12.9 10.1 6.5 5.6 3.8 0.5 Europe Casualty and Financial lines 8.2 17.6 14.0 14.7 10.0 7.4 7.0 4.1 3.4 3.5 U.S. and Europe Property and Special Risks 28.7 37.0 14.5 7.1 4.3 2.3 1.2 0.8 0.8 - U.S. Europe and Japan Personal insurance 58.9 27.2 6.1 3.1 1.7 0.9 0.6 0.3 0.2 0.1 U.S. Run-off Long Tail Insurance lines 10.4 15.7 15.5 12.7 11.9 7.7 5.2 4.1 1.8 1.6 |
Schedule of loss reserve discount and loss reserve discount benefit (charge) | The following table presents the components o f the loss reserve discount discussed above: December 31, 2016 2015 Legacy Legacy Portfolio - Portfolio - Property Property and Casualty and Casualty U.S. run-off U.S. run-off Liability and Insurance Liability and Insurance (in millions) Financial Lines Lines Total Financial Lines Lines Total U.S. workers' compensation $ 2,583 $ 987 $ 3,570 $ 2,177 $ 964 $ 3,141 Asbestos - - - - 7 7 Total reserve discount $ 2,583 $ 987 $ 3,570 $ 2,177 $ 971 $ 3,148 The following table presents the net loss reserve discount benefit (charge) : Years Ended December 31, 2016 2015 2014 Legacy Legacy Legacy Portfolio - Portfolio - Portfolio - Property Property Property and Casualty and Casualty and Casualty U.S. run-off U.S. run-off U.S. run-off Liability and Insurance Liability and Insurance Liability and Insurance (in millions) Financial Lines Lines Total Financial Lines Lines Total Financial Lines Lines Total Current accident year $ 177 $ - $ 177 $ 182 $ - $ 182 $ 189 $ - $ 189 Accretion and other adjustments to prior year discount 287 64 351 (262) (74) (336) (35) (235) (270) Effect of interest rate changes (58) (48) (106) 148 77 225 (225) (172) (397) Net reserve discount benefit (charge) 406 16 422 68 3 71 (71) (407) (478) Amount transferred to run-off insurance lines - - - (39) 39 - - - - Net change in total reserve discount $ 406 $ 16 $ 422 $ 29 $ 42 $ 71 $ (71) $ (407) $ (478) Comprised of: U.S. Workers' compensation $ 406 $ 23 $ 429 $ 29 $ 46 $ 75 $ (71) $ (385) $ (456) Asbestos $ - $ (7) $ (7) $ - $ (4) $ (4) $ - $ (22) $ (22) |
Schedule of Policyholder contract deposits by product type | At December 31, (in millions) 2016 2015 Policyholder contract deposits: Fixed Annuities $ 51,278 $ 52,103 Group Retirement 39,578 37,854 Life Insurance 11,855 11,691 Variable and Index Annuities 16,934 13,927 Institutional Markets 7,286 6,533 Legacy Portfolio 5,285 5,480 Total Policyholder contract deposits $ 132,216 $ 127,588 |
VARIABLE LIFE AND ANNUITY CON55
VARIABLE LIFE AND ANNUITY CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 Equity funds $ 42,266 $ 39,284 Bond funds 7,798 7,261 Balanced funds 25,365 24,849 Money market funds 840 826 Total $ 76,269 $ 72,220 |
Schedule of details concerning entity's GMDB exposures, by benefit type | At December 31, 2016 2015 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 $ 91 $ 16 $ 87 $ 16 Net amount at risk 1 1 2 1 Average attained age of contract holders by product 63 68 63 69 Range of guaranteed minimum return rates 0%-4.5% 0%-4.5% |
Schedule of changes in GMDB and GMIB liabilities for guarantees on variable contracts reflected in the general account | Years Ended December 31, (in millions) 2016 2015 2014 Balance, beginning of year $ 491 $ 420 $ 394 Reserve increase (decrease) (32) 127 93 Benefits paid (57) (56) (67) Balance, end of year $ 402 $ 491 $ 420 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
DEBT | |
Schedule of total debt outstanding | Balance at Balance at At December 31, 2016 Range of Maturity December 31, December 31, (in millions) Interest Rate(s) Date(s) 2016 2015 Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable 0.99% - 8.13% 2017 - 2097 $ 19,432 $ 17,047 Junior subordinated debt 4.88% - 8.63% 2037 - 2058 843 1,327 AIG Japan Holdings Kabushiki Kaisha 0.28% - 0.44% 2020 - 2021 330 106 AIGLH notes and bonds payable 6.63% - 7.5% 2025 - 2029 281 284 AIGLH junior subordinated debt 7.57% - 8.5% 2030 - 2046 361 420 Total AIG general borrowings 21,247 19,184 AIG borrowings supported by assets: (a) MIP notes payable 2.28% - 8.59% 2017 - 2018 1,099 1,372 Series AIGFP matched notes and bonds payable 0.94% - 7.50% 2017 - 2047 32 34 GIAs, at fair value 0.50% - 7.62% 2017 - 2047 2,934 3,276 Notes and bonds payable, at fair value 0.51% - 10.37% 2017 - 2047 494 394 Total AIG borrowings supported by assets 4,559 5,076 Total debt issued or guaranteed by AIG 25,806 24,260 Debt not guaranteed by AIG: Other subsidiaries notes, bonds, loans and mortgages payable 0.73% - 1.15% 2017 735 2 Debt of consolidated investments (b) 0% - 9.31% 2017 - 2062 4,371 4,987 Total debt not guaranteed by AIG 5,106 4,989 Total long term debt (c) $ 30,912 $ 29,249 (a) AIG Parent guarantees all such debt, except for MIP notes payable and Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. Collateral posted to third parties was $ 2.2 billion and $ 2.4 billion at December 31, 2016 and December 31, 2015 , respectively . This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged o r resold by the counterparties. (b ) At December 31, 2016 , includes debt of consol idated investment vehicles related to real estate investments of $ 1.9 billion, affordable housing partnership investments of $ 1.7 b illion and other securitization vehicles of $ 771 m illion . At December 31, 2015 , includes debt of consol idated investment vehicles related to real estate investments of $ 2.4 billio n, affordable housing partnership investments of $ 1.5 b illion and other securitization vehicles of $ 1.0 b illion . (c) Includes debt issuance costs of $88 million and $101 million at December 31, 2016 and 2 015, respectively. |
Maturities of long-term debt, excluding borrowings of debt of consolidated investments | December 31, 2016 Year Ending (in millions) Total 2017 2018 2019 2020 2021 Thereafter Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable $ 19,432 $ 167 $ 1,106 $ 997 $ 1,342 $ 1,494 $ 14,326 Junior subordinated debt 843 - - - - - 843 AIG Japan Holdings Kabushiki Kaisha 330 - - - 114 216 - AIGLH notes and bonds payable 281 - - - - - 281 AIGLH junior subordinated debt 361 - - - - - 361 Total AIG general borrowings 21,247 167 1,106 997 1,456 1,710 15,811 AIG borrowings supported by assets: MIP notes payable 1,099 751 348 - - - - Series AIGFP matched notes and bonds payable 32 10 - - - - 22 GIAs, at fair value 2,934 187 486 98 32 242 1,889 Notes and bonds payable, at fair value 494 311 116 - - - 67 Total AIG borrowings supported by assets 4,559 1,259 950 98 32 242 1,978 Total debt issued or guaranteed by AIG 25,806 1,426 2,056 1,095 1,488 1,952 17,789 Other subsidiaries notes, bonds, loans and mortgages payable 735 735 - - - - - Total $ 26,541 $ 2,161 $ 2,056 $ 1,095 $ 1,488 $ 1,952 $ 17,789 |
Schedule of detail for uncollateralized and collateralized notes, bonds, loans and mortgages payable | Uncollateralized Collateralized At December 31, 2016 Notes/Bonds/Loans Loans and (in millions) Payable Mortgages Payable Total AIG general borrowings $ 330 $ - $ 330 Other subsidiaries notes, bonds, loans and mortgages payable * - 735 735 Total $ 330 $ 735 $ 1,065 * AIG does not guarantee any of these borrowings. |
Summary of the Four-Year Facility | At December 31, 2016 Available Effective (in millions) Size Amount Expiration Date Syndicated Credit Facility $ 4,500 $ 4,500 November 2020 11/5/2015 |
CONTINGENCIES, COMMITMENTS AN57
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
Future minimum lease payments under operating leases | (in millions) 2017 $ 295 2018 222 2019 167 2020 135 2021 94 Remaining years after 2021 185 Total $ 1,098 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
EQUITY | |
Rollforward of common stock outstanding | Common Treasury Common Stock Stock Issued Stock Outstanding 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 Year Ended December 31, 2015 Shares, beginning of year 1,906,671,492 (530,744,521) 1,375,926,971 Shares issued - 371,806 371,806 Shares repurchased - (182,382,160) (182,382,160) Shares, end of year 1,906,671,492 (712,754,875) 1,193,916,617 Year Ended December 31, 2016 Shares, beginning of year 1,906,671,492 (712,754,875) 1,193,916,617 Shares issued - 2,069,110 2,069,110 Shares repurchased - (200,649,886) (200,649,886) Shares, end of year 1,906,671,492 (911,335,651) 995,335,841 |
Dividends Paid | Dividends Paid Record Date Payment Date Per Share December 8, 2016 December 22, 2016 $ 0.32 September 15, 2016 September 29, 2016 0.32 June 13, 2016 June 27, 2016 0.32 March 14, 2016 March 28, 2016 0.32 December 7, 2015 December 21, 2015 0.28 September 14, 2015 September 28, 2015 0.28 June 11, 2015 June 25, 2015 0.125 March 12, 2015 March 26, 2015 0.125 December 4, 2014 December 18, 2014 0.125 September 11, 2014 September 25, 2014 0.125 June 10, 2014 June 24, 2014 0.125 March 11, 2014 March 25, 2014 $ 0.125 |
Repurchases Of Common Stock and Warrant | Years Ended December 31, (in millions) 2016 2015 * 2014 Aggregate repurchases of common stock $ 11,460 $ 10,691 $ 4,902 Total number of common shares repurchased 201 182 88 Aggregate repurchases of warrants $ 309 $ - $ - Total number of warrants repurchased 17 - - * T h e total number of shares of AIG Common Stock repurchased in 2015 includes (but the aggregate purchase price does not include) approximately 3.5 million shares of AIG Common Stock received in January 2015 upon the settlement of an accelerated stock repurchase ( ASR ) agreement executed in the fourth quarter of 2014. |
Accumulated Other Comprehensive Income (Loss) | Unrealized Appreciation (Depreciation) of Fixed Maturity Investments Unrealized on Which Other-Than- Appreciation Foreign Retirement Temporary Credit (Depreciation) Currency Plan Impairments of All Other Translation Liabilities (in millions) Were Taken Investments Adjustments Adjustment Total Balance, January 1, 2014, net of tax $ 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, net of tax $ 1,043 $ 12,327 $ (1,784) $ (969) $ 10,617 Change in unrealized depreciation of investments (488) (10,519) - - (11,007) Change in deferred policy acquisition costs adjustment and other (146) 1,265 - - 1,119 Change in future policy benefits 92 1,112 - - 1,204 Change in foreign currency translation adjustments - - (1,129) - (1,129) Change in net actuarial gain - - - 413 413 Change in prior service credit - - - (239) (239) Change in deferred tax asset (liability) 195 1,380 29 (51) 1,553 Total other comprehensive income (loss) (347) (6,762) (1,100) 123 (8,086) Noncontrolling interests - (1) (5) - (6) Balance, December 31, 2015, net of tax $ 696 $ 5,566 $ (2,879) $ (846) $ 2,537 Change in unrealized appreciation (depreciation) of investments (326) 931 - - 605 Change in deferred policy acquisition costs adjustment and other (19) 286 - - 267 Change in future policy benefits - (676) - - (676) Change in foreign currency translation adjustments - - 93 - 93 Change in net actuarial loss - - - (151) (151) Change in prior service credit - - - (22) (22) Change in deferred tax asset 75 298 157 47 577 Total other comprehensive income (loss) (270) 839 250 (126) 693 Noncontrolling interests - - - - - Balance, December 31, 2016, net of tax $ 426 $ 6,405 $ (2,629) $ (972) $ 3,230 |
Other comprehensive income (loss) reclassification adjustments | Unrealized Appreciation (Depreciation) of Fixed Maturity Securities Unrealized on Which Other-Than- Appreciation Foreign Retirement Temporary Credit (Depreciation) Currency Plan Impairments Were of All Other Translation Liabilities (in millions) Recognized Investments Adjustments Adjustment Total December 31, 2014 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 December 31, 2015 Unrealized change arising during period $ (471) $ (7,068) $ (1,129) $ 285 $ (8,383) Less: Reclassification adjustments included in net income 71 1,074 - 111 1,256 Total other comprehensive income (loss), before income tax expense (benefit) (542) (8,142) (1,129) 174 (9,639) Less: Income tax expense (benefit) (195) (1,380) (29) 51 (1,553) Total other comprehensive income (loss), net of income tax expense (benefit) $ (347) $ (6,762) $ (1,100) $ 123 $ (8,086) December 31, 2016 Unrealized change arising during period $ (222) $ 1,769 $ 93 $ (344) $ 1,296 Less: Reclassification adjustments included in net income 123 1,228 - (171) 1,180 Total other comprehensive income (loss), before income tax expense (benefit) (345) 541 93 (173) 116 Less: Income tax benefit (75) (298) (157) (47) (577) Total other comprehensive income (loss), net of income tax benefit $ (270) $ 839 $ 250 $ (126) $ 693 |
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 Years Ended December 31, Comprehensive Income Affected Line Item in the (in millions) 2016 2015 2014 Consolidated Statements of Income Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken Investments $ 123 $ 71 $ 28 Other realized capital gains Total 123 71 28 Unrealized appreciation (depreciation) of all other investments Investments 935 1,054 669 Other realized capital gains Deferred acquisition costs adjustment 293 3 (20) Amortization of deferred policy acquisition costs Future policy benefits - 17 (117) Policyholder benefits and losses incurred Total 1,228 1,074 532 Change in retirement plan liabilities adjustment Prior-service credit 15 214 47 * Actuarial losses (186) (103) (49) * Total (171) 111 (2) Total reclassifications for the period $ 1,180 $ 1,256 $ 558 * These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 21 to the Consolidated Financial Statements. |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
EARNINGS PER SHARE (EPS) | |
Computation of basic and diluted EPS | Years Ended December 31, (dollars in millions, except per share data) 2016 2015 2014 Numerator for EPS: Income (loss) from continuing operations $ (259) $ 2,222 $ 7,574 Less: Net income (loss) from continuing operations attributable to noncontrolling interests 500 26 (5) income (loss) attributable to AIG common shareholders from continuing operations (759) 2,196 7,579 Income (loss) from discontinued operations, net of income tax expense (90) - (50) Net income (loss) attributable to AIG common shareholders $ (849) $ 2,196 $ 7,529 Denominator for EPS: Weighted average shares outstanding — basic 1,091,085,131 1,299,825,350 1,427,959,799 Dilutive shares - 34,639,533 19,593,853 Weighted average shares outstanding — diluted (a)(b) 1,091,085,131 1,334,464,883 1,447,553,652 Income (loss) per common share attributable to AIG: Basic: Income (loss) from continuing operations $ (0.70) $ 1.69 $ 5.31 Income from discontinued operations $ (0.08) $ - $ (0.04) Income (loss) attributable to AIG $ (0.78) $ 1.69 $ 5.27 Diluted: Income (loss) from continuing operations $ (0.70) $ 1.65 $ 5.24 Income from discontinued operations $ (0.08) $ - $ (0.04) Income (loss) attributable to AIG $ (0.78) $ 1.65 $ 5.20 (a) Shares in the diluted EPS calculation represent basic shares for 2016 due to the net loss in that period. The shares excluded from the calculation were 30,326,772 shares. (b) Dilutive shares included our share-based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011. The number of shares excluded from diluted shares outstanding were 0.2 million, 0.2 million and 0.3 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, because the effect of including those shares i n the calculation would have been anti-dilutive. |
STATUTORY FINANCIAL DATA AND 60
STATUTORY FINANCIAL DATA AND RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 Years Ended December 31, Statutory net income (loss) (a)(b)(c) : Property Casualty Insurance Companies : Domestic (c) $ (229) $ 1,444 $ 3,265 Foreign (1,316) 594 1,252 Total Property Casualty Insurance Companies $ (1,545) $ 2,038 $ 4,517 Life Insurance Companies : Domestic $ 2,252 $ 2,200 $ 2,865 Foreign 47 (5) (9) Total Life Insurance Companies $ 2,299 $ 2,195 $ 2,856 At December 31, Statutory capital and surplus (a)(b)(c) : Property Casualty Insurance Companies : Domestic (c) $ 21,819 $ 25,956 Foreign 12,689 12,995 Total Property Casualty Insurance Companies $ 34,508 $ 38,951 Life Insurance Companies : Domestic $ 12,363 $ 8,379 Foreign 490 422 Total Life Insurance Companies $ 12,853 $ 8,801 Aggregate minimum required statutory capital and surplus : Property Casualty Insurance Companies : Domestic $ 5,390 $ 7,119 Foreign 7,355 7,208 Total Property Casualty Insurance Companies $ 12,745 $ 14,327 Life Insurance Companies : Domestic $ 3,107 $ 3,659 Foreign 234 179 Total Life Insurance Companies $ 3,341 $ 3,838 (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 ) In aggregate, the 2015 Property Casualty Insurance Companies and Life Insurance Companies statutory net income decreased by $ 146 million and the 2015 Property Casualty Insurance Companies and Life Insurance Companies statutory capital and surplus increased by $ 3.2 billion, com pared to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2015, due to finalization of statutory filings, as well as inclusion of the finalized statutory net loss and statutory capital and surplus of Eaglest one of $3.4 million and $1.9 billion, respectively. The results of Eaglestone were excluded from the 2015 Property Casualty Insurance Companies statutory net income and statutory capital and surplus in our previously reported Form 10-K for the year ended D ecember 31, 2015. ( c) Property Casualty Insurance Companies recognized $200 million and $ 2.9 billion of capital contributions from AIG Parent in their statutory financial statements as of December 31, 2016 and 2015, respectively, related to the reserve st rengthening in the fourth quarter of each year . These capital contributions were received in February 2017 and January 2016, respectively. |
SHARE-BASED AND OTHER COMPENS61
SHARE-BASED AND OTHER COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED AND OTHER COMPENSATION PLANS | |
Schedule of share-based compensation expense recognized in Consolidated Statements of Income | Years Ended December 31, (in millions) 2016 2015 2014 Share-based compensation expense - pre-tax * $ 237 $ 365 $ 349 Share-based compensation expense - after tax 154 237 227 * We recognized $ 105 million, $ 147 million and $ 120 million for immediately vested stock-settled awards issued to retirement eligible employees in 2016 , 2015 and 2014 , respectively. |
Schedule of assumptions used to estimate the fair value of PSUs based on AIG's TSR | 2016 2015 2014 Expected dividend yield (a) 2.17 % 1.78 % 1.13 % Expected volatility (b) 24.55 % 22.71 % 23.66 % Risk-free interest rate (c) 1.30 % 1.01 % 0.76 % (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 interes t 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 LTI awards | Weighted Average As of or for the Year Number of PSUs (b) Grant-Date Fair Value Ended December 31, 2016 2016 LTI 2015 LTI 2014 LTI 2013 LTI (c) 2016 LTI 2015 LTI 2014 LTI 2013 LTI Unvested, beginning of year - 3,046,958 2,559,359 2,250,109 $ - $ 55.08 $ 48.82 $ 37.07 Granted 5,092,452 4,704 - 3,471,850 50.77 64.23 - 36.55 Vested (2,315,667) (681,396) (652,198) (3,974,941) 50.42 54.03 48.65 36.20 Forfeited (188,187) (193,711) (174,545) (165,114) 50.26 54.14 48.81 37.71 Unvested, end of year (d) 2,588,598 2,176,555 1,732,616 1,581,904 $ 51.12 $ 55.52 $ 48.88 $ 38.03 (a) Excludes DSUs, which are discussed under Non-Employee Plan. (b) Except for the 2013 LTI award, 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 for the respective awards, which is determined in the quarter after the applicable performance period ends. (c) The performance period for the 201 3 LTI awards ended December 31, 201 5. T he number of earned PSUs was based on the results of the 201 3 performance goals adjudicated in the first quarter of 201 6 by the CMRC. This resulted in additional units being granted, but no additional expense was recognized for these units. (d) At December 31, 2016 , the total unrecognized compensation cost (net of expected forfeitures) for the unvested PSUs was $ 163 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 1.26 years and 4 years . |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, U.S. Plans * Non-U.S. Plans * U.S. Plans Non-U.S. Plans (in millions) 2016 2015 2016 2015 2016 2015 2016 2015 Change in projected benefit obligation: Benefit obligation, beginning of year $ 5,324 $ 5,769 $ 1,146 $ 1,099 $ 208 $ 229 $ 75 $ 64 Service cost 19 192 31 43 2 5 3 3 Interest cost 181 220 21 25 7 8 3 3 Actuarial (gain) loss 118 (423) 98 (16) (2) (23) - 9 Benefits paid: AIG assets (24) (17) (12) (9) (14) (11) (1) (1) Plan assets (332) (285) (35) (24) - - - - Plan amendment - (132) 1 24 - - - - Curtailments - - (2) - (1) - - - Settlements (338) - (16) (15) - - - - Foreign exchange effect - - 19 (67) - - - (3) Acquisitions - - - 72 - - - - Other - - (5) 14 (4) - - - Projected benefit obligation, end of year $ 4,948 $ 5,324 $ 1,246 $ 1,146 $ 196 $ 208 $ 80 $ 75 Change in plan assets: Fair value of plan assets, beginning of year $ 4,359 $ 4,111 $ 773 $ 708 $ - $ - $ - $ - Actual return on plan assets, net of expenses 154 (8) 19 47 - - - - AIG contributions 24 558 71 62 14 11 1 1 Benefits paid: AIG assets (24) (17) (12) (9) (14) (11) (1) (1) Plan assets (332) (285) (35) (24) - - - - Settlements (338) - (16) (15) - - - - Foreign exchange effect - - 6 (44) - - - - Dispositions - - (4) - - - - - Acquisitions - - - 35 - - - - Other - - 1 13 - - - - Fair value of plan assets, end of year $ 3,843 $ 4,359 $ 803 $ 773 $ - $ - $ - $ - Funded status, end of year $ (1,105) $ (965) $ (443) $ (373) $ (196) $ (208) $ (80) $ (75) Amounts recognized in the balance sheet: Assets $ - $ - $ 53 $ 46 $ - $ - $ - $ - Liabilities (1,105) (965) (496) (419) (196) (208) (80) (75) Total amounts recognized $ (1,105) $ (965) $ (443) $ (373) $ (196) $ (208) $ (80) $ (75) Pre-tax amounts recognized in Accumulated other comprehensive income: Net gain (loss) $ (1,405) $ (1,324) $ (251) $ (161) $ 17 $ 13 $ (15) $ (16) Prior service (cost) credit - - (28) (16) 2 13 - - Total amounts recognized $ (1,405) $ (1,324) $ (279) $ (177) $ 19 $ 26 $ (15) $ (16) * Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $ 278 million and $ 299 million for the U.S. at December 31, 2016 and 2015 , respectively , and $ 199 million for the non-U.S for both 2016 and 2015 . |
Schedule of components of net periodic benefit cost | Years Ended December 31, Pension Postretirement U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 Components of net periodic benefit cost: Service cost $ 19 $ 192 $ 173 $ 31 $ 43 $ 42 $ 2 $ 5 $ 4 $ 3 $ 3 $ 2 Interest cost 181 220 228 21 25 29 7 8 9 3 3 2 Expected return on assets (292) (295) (288) (26) (25) (22) - - - - - - Amortization of prior service credit - (22) (33) - (2) (3) (12) (11) (11) - (1) - Amortization of net (gain) loss 25 92 42 7 9 7 (1) - - 1 - - Curtailment (gain) loss - (179) - (6) (1) 1 (1) - - - - - Settlement loss 149 - - 2 1 - - - - - - - Net periodic benefit cost (credit) $ 82 $ 8 $ 122 $ 29 $ 50 $ 54 $ (5) $ 2 $ 2 $ 7 $ 5 $ 4 Total recognized in Accumulated other comprehensive income (loss) $ (82) $ 143 $ (793) $ (101) $ 38 $ (40) $ (7) $ 12 $ (21) $ 1 $ (9) $ (11) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (164) $ 135 $ (915) $ (130) $ (12) $ (94) $ (2) $ 10 $ (23) $ (6) $ (14) $ (15) |
Schedule of weighted average assumptions used to determine the benefit obligations | Pension Postretirement U.S. Plans Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (a) December 31, 2016 Discount rate 4.14 % 1.50 % 4.02 % 3.95 % Rate of compensation increase N/A (b) 2.50 % N/A 3.38 % December 31, 2015 Discount rate 4.32 % 2.17 % 4.21 % 4.09 % Rate of compensation increase N/A (b) 2.64 % N/A 3.43 % (a) 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. (b) Compensation increases are no longer applicable due to the plan freeze that became effective January 1, 2016. |
Schedule of weighted average assumptions used to determine the net periodic benefit costs | Pension Postretirement U.S. Plans Non-U.S. Plans * U.S. Plans Non-U.S. Plans * For the Year Ended December 31, 2016 Discount rate 4.33 % 2.17 % 4.21 % 4.09 % Rate of compensation increase N/A 2.64 % N/A 3.43 % Expected return on assets 7.00 % 3.28 % N/A N/A For the Year Ended December 31, 2015 Discount rate 3.94 % 2.33 % 3.77 % 4.04 % Rate of compensation increase 3.40 % 2.89 % N/A 3.29 % Expected return on assets 7.25 % 3.33 % N/A N/A For the Year Ended December 31, 2014 Discount rate 4.83 % 2.77 % 4.59 % 4.77 % Rate of compensation increase 3.50 % 2.89 % N/A 3.34 % Expected return on assets 7.25 % 2.93 % 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, 2016 Assets: Cash and cash equivalents $ 228 $ - $ - $ 228 $ 50 $ - $ - $ 50 Equity securities: U.S. (a) 838 1 - 839 - - - - International (b) 377 - - 377 298 58 - 356 Fixed maturity securities: U.S. investment grade (c) - 1,174 2 1,176 - - - - International investment grade (c) - - - - - 90 - 90 U.S. and international high yield (d) - 218 - 218 - 186 - 186 Mortgage and other asset-backed securities (e) - - - - - - - - Other fixed maturity securities - - - - - 13 - 13 Other investment types (g) : Futures - - - - - - - - Direct private equity (f) - - 24 24 - - - - Insurance contracts - 21 - 21 - - 108 108 Total $ 1,443 $ 1,414 $ 26 $ 2,883 $ 348 $ 347 $ 108 $ 803 At December 31, 2015 Assets: Cash and cash equivalents $ 239 $ - $ - $ 239 $ 49 $ - $ - $ 49 Equity securities: U.S. (a) 924 - - 924 35 - - 35 International (b) 262 1 - 263 248 67 - 315 Fixed maturity securities: U.S. investment grade (c) - 1,452 9 1,461 - - - - International investment grade (c) - - - - - 190 - 190 U.S. and international high yield (d) - 322 - 322 - 66 - 66 Mortgage and other asset-backed securities (e) - 7 - 7 - - - - Other fixed maturity securities - - - - - 12 - 12 Other investment types (g) : Futures 2 - - 2 - - - - Real Estate - - - - 11 - - 11 Direct private equity (f) - 5 28 33 - - - - Insurance contracts - 23 - 23 - - 95 95 Total $ 1,427 $ 1,810 $ 37 $ 3,274 $ 343 $ 335 $ 95 $ 773 (a) Includes passive and active U. S. Large Cap and Small Cap strategies, as well as mutual funds, and exchange traded funds. (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) Comprised of private capital financing including private debt and private equity securities. (g) Excludes investments that are measured at fair value using the NAV per share (or its e quivalent), which totaled $ 960 million and $ 1.1 billion at December 31, 2016 and 2015 , respectively. |
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, 2016 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 $ 1 $ 2 $ (10) $ - $ - $ - $ - $ 2 $ - Direct private equity 28 (4) 4 (4) - - - - 24 (4) Total $ 37 $ (3) $ 6 $ (14) $ - $ - $ - $ - $ 26 $ (4) Non-U.S. Plan Assets: Other fixed maturity securities $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Insurance contracts 95 12 1 - - - 2 (2) 108 - Total $ 95 $ 12 $ 1 $ - $ - $ - $ 2 $ (2) $ 108 $ - Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2015 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 $ 8 $ (1) $ 17 $ (15) $ - $ - $ - $ - $ 9 $ - Direct private equity 17 2 10 (1) - - - - 28 2 Total $ 25 $ 1 $ 27 $ (16) $ - $ - $ - $ - $ 37 $ 2 Non-U.S. Plan Assets: Other fixed maturity securities $ 17 $ (1) $ - $ - $ - $ - $ - $ (16) $ - $ - Insurance contracts 56 (7) 1 - - - 53 (8) 95 - Total $ 73 $ (8) $ 1 $ - $ - $ - $ 53 $ (24) $ 95 $ - |
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 2017 $ 313 $ 38 $ 15 $ 1 2018 305 39 15 2 2019 318 44 15 2 2020 312 45 16 2 2021 308 47 16 2 2022-2026 1,477 275 82 13 |
Pensions | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of accumulated benefit obligations | At December 31, (in millions) 2016 2015 U.S. pension benefit plans $ 4,948 $ 5,324 Non-U.S. pension benefit plans $ 1,215 $ 1,109 |
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) 2016 2015 2016 2015 2016 2015 2016 2015 Projected benefit obligation $ 4,948 $ 5,324 $ 1,121 $ 999 $ 4,948 $ 5,324 $ 1,029 $ 912 Accumulated benefit obligation 4,948 5,324 1,016 896 4,948 5,324 1,009 889 Fair value of plan assets 3,843 4,359 545 506 3,843 4,359 536 497 |
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, 2017 2016 2015 Asset class: Equity securities 45 % 43 % 35 % Fixed maturity securities 40 % 36 % 41 % Other investments 15 % 21 % 24 % 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, 2017 2016 2015 Asset class: Equity securities 30 % 44 % 45 % Fixed maturity securities 50 % 36 % 35 % Other investments 18 % 14 % 13 % Cash and cash equivalents 2 % 6 % 7 % 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) 2016 2015 2016 2015 U.S. plans $ 4 $ 6 $ (3) $ (4) Non-U.S. plans $ 19 $ 17 $ (14) $ (12) |
U.S. Postretirement Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of assumed health care cost trend rates | At December 31, 2016 2015 Following year: Medical (before age 65) 6.31% 6.79% Medical (age 65 and older) 5.00% 6.64% 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) 2038 2027 Medical (age 65 and older) 2038 2027 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2014 U.S. $ 1,041 $ 1,950 $ 8,250 Foreign (1,115) 1,331 2,251 Total $ (74) $ 3,281 $ 10,501 |
Schedule of income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations | Years Ended December 31, (in millions) 2016 2015 2014 Foreign and U.S. components of actual income tax expense: Foreign: Current $ 436 $ 391 $ 473 Deferred (121) (95) 154 U.S.: Current 140 429 115 Deferred (270) 334 2,185 Total $ 185 $ 1,059 $ 2,927 |
Schedule of reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate | 2016 2015 2014 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 rate $ (159) $ (56) 35.0 % $ 3,281 $ 1,148 35.0 % $ 10,524 $ 3,683 35.0 % Adjustments: Tax exempt interest (178) 111.9 (195) (5.9) (236) (2.2) Uncertain tax positions 268 (168.6) 195 5.9 (81) (0.8) Reclassifications from accumulated other comprehensive income (132) 83.0 (127) (3.9) (61) (0.6) Dispositions of Subsidiaries 118 (74.2) - - - - Tax Attribute Restoration (164) 103.1 - - (182) (1.7) Non-controlling Interest (81) 50.9 - - - - Non-deductible transfer pricing charges 102 (64.2) 97 3.0 86 0.8 Dividends received deduction (75) 47.2 (72) (2.2) (62) (0.6) Effect of foreign operations 234 (147.2) (58) (1.8) (68) (0.6) State income taxes 23 (14.5) 34 1.0 39 0.4 Other 13 (8.2) (73) (2.2) (2) - Effect of discontinued operations 35 (22.0) - - 65 0.6 Valuation allowance: Continuing operations 83 (52.2) 110 3.4 (181) (1.7) Consolidated total amounts (159) 190 (119.5) 3,281 1,059 32.3 10,524 3,000 28.5 Amounts attributable to discontinued operations (85) 5 (5.9) - - - 23 73 317.4 Amounts attributable to continuing operations $ (74) $ 185 (250.0) % $ 3,281 $ 1,059 32.3 % $ 10,501 $ 2,927 27.9 % |
Schedule of components of the net deferred tax asset | December 31, (in millions) 2016 2015 Deferred tax assets: Losses and tax credit carryforwards $ 16,448 $ 18,680 Basis differences on investments 4,985 4,886 Life policy reserves 3,040 353 Accruals not currently deductible, and other 1,128 1,003 Investments in foreign subsidiaries 103 - Loss reserve discount 1,151 1,021 Loan loss and other reserves 39 8 Unearned premium reserve reduction 924 1,603 Flight equipment, fixed assets and intangible assets 478 129 Other 710 577 Employee benefits 1,171 1,286 Total deferred tax assets 30,177 29,546 Deferred tax liabilities: Investments in foreign subsidiaries - (33) Deferred policy acquisition costs (3,790) (3,467) Unrealized gains related to available for sale debt securities (2,844) (3,077) Total deferred tax liabilities (6,634) (6,577) Net deferred tax assets before valuation allowance 23,543 22,969 Valuation allowance (2,831) (3,012) Net deferred tax assets (liabilities) $ 20,712 $ 19,957 |
Schedule of consolidated income tax group credits carryforwards | December 31, 2016 Tax Expiration (in millions) Gross Effected Periods Net operating loss carryforwards $ 34,618 $ 12,116 2028 - 2035 Foreign tax credit carryforwards 4,917 2018 - 2023 Other carryforwards 737 Various Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis 17,770 Unrecognized tax benefit (2,903) Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S. GAAP basis * $ 14,867 * Includes other carryforwards, e.g. general business credits, of $ 96 million on a U.S. GAAP basis. |
Schedule of consolidated income tax group tax losses carryforwards | December 31, 2016 Tax Expiration (in millions) Gross Effected Periods Net operating loss carryforwards $ 34,618 $ 12,116 2028 - 2035 Foreign tax credit carryforwards 4,917 2018 - 2023 Other carryforwards 737 Various Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis 17,770 Unrecognized tax benefit (2,903) Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S. GAAP basis * $ 14,867 * Includes other carryforwards, e.g. general business credits, of $ 96 million on a U.S. GAAP basis. |
Schedule of net deferred tax assets (liabilities) | December 31, (in millions) 2016 2015 Net U.S. consolidated return group deferred tax assets $ 24,134 $ 24,134 Net deferred tax assets (liabilities) in accumulated other comprehensive income (2,384) (2,806) Valuation allowance (874) (1,281) Subtotal 20,876 20,047 Net foreign, state and local deferred tax assets 2,413 2,078 Valuation allowance (1,957) (1,731) Subtotal 456 347 Subtotal - Net U.S., foreign, state and local deferred tax assets 21,332 20,394 Net foreign, state and local deferred tax liabilities (620) (437) Total AIG net deferred tax assets (liabilities) $ 20,712 $ 19,957 |
Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | Years Ended December 31, (in millions) 2016 2015 2014 Gross unrecognized tax benefits, beginning of year $ 4,331 $ 4,395 $ 4,340 Increases in tax positions for prior years 235 162 91 Decreases in tax positions for prior years (39) (209) (60) Increases in tax positions for current year 3 - 10 Lapse in statute of limitations - (4) (6) Settlements - (13) - Activity of discontinued operations - - 20 Gross unrecognized tax benefits, end of year $ 4,530 $ 4,331 $ 4,395 |
Schedule of tax years that remain subject to examination by major tax jurisdictions | At December 31, 2016 Open Tax Years Major Tax Jurisdiction United States 2000-2015 Australia 2012-2015 France 2014-2015 Japan 2010-2015 Korea 2011-2015 Singapore 2012-2015 United Kingdom 2013-2015 |
QUARTERLY FINANCIAL INFORMATI64
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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) 2016 2015 2016 2015 2016 2015 2016 2015 Total revenues $ 11,779 $ 15,975 $ 14,724 $ 15,699 $ 12,854 $ 12,822 $ 13,010 $ 13,831 Income (loss) from continuing operations before income taxes * (214) 3,776 2,858 2,552 737 (115) (3,455) (2,932) Income (loss) from discontinued operations, net of income taxes (47) 1 (10) 16 3 (17) (36) - Net income (loss) (203) 2,477 1,924 1,791 436 (197) (2,506) (1,849) Net income (loss) from continuing operations attributable to noncontrolling interests (20) 9 11 (9) (26) 34 535 (8) Net income (loss) attributable to AIG * $ (183) $ 2,468 $ 1,913 $ 1,800 $ 462 $ (231) $ (3,041) $ (1,841) Income (loss) per common share attributable to AIG: Basic: Income (loss) from continuing operations $ (0.12) $ 1.81 $ 1.73 $ 1.34 $ 0.43 $ (0.17) $ (2.93) $ (1.50) Income (loss) from discontinued operations $ (0.04) $ - $ (0.01) $ 0.01 $ - $ (0.01) $ (0.03) $ - Diluted: Income (loss) from continuing operations $ (0.12) $ 1.78 $ 1.69 $ 1.31 $ 0.42 $ (0.17) $ (2.93) $ (1.50) Income (loss) from discontinued operations $ (0.04) $ - $ (0.01) $ 0.01 $ - $ (0.01) $ (0.03) $ - Weighted average shares outstanding: Basic 1,156,548,459 1,365,951,690 1,113,587,927 1,329,157,366 1,071,295,892 1,279,072,748 1,023,886,592 1,226,880,632 Diluted 1,156,548,459 1,386,263,549 1,140,045,973 1,365,390,431 1,102,400,770 1,279,072,748 1,023,886,592 1,226,880,632 Noteworthy quarterly items - income (expense): Other-than-temporary impairments (204) (128) (108) (164) (102) (273) (145) (106) Net (gain) loss on sale of divested businesses 2 6 (225) 1 (128) 3 (194) 1 Federal and foreign valuation allowance for deferred tax assets (37) 93 35 (40) (2) 8 87 49 Net gain (loss) on extinguishment of debt (83) (68) (7) (342) 14 (346) 2 - Reserve strengthening charges (66) 24 7 317 273 191 5,574 3,587 Restructuring and other costs 188 - 90 - 210 274 206 222 * For the three months ended December 31, 2016, we recorded out of period adjustments related to prior periods that increased Net loss attributable to AIG by $154 million, increased AIG’s Loss from continuing operations before income taxes by $12 million and decreased pre-tax operating income by $1 million. The out of period adjustments are primarily related to income tax liabilities and ceded loss adjustment expenses. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG for the three-month periods ended September 30, 2016, June 30, 2016 and March 31, 2016 would have decreased by $65 million, increased by $66 million and increased by $19 million, respectively. Net incom e attributable to AIG for the three-month periods ended December 31, 2015, September 30, 2015, June 30, 2015 and March 31, 2015 would have decreased by $88 million, increased by $22 million, increased by $5 million, and decreased by $5 million, respectivel y. For the three months ended December 31, 2015, we recorded out of period adjustments related to prior periods that decreased Net income attributable to AIG by $193 million, decreased AIG’s Income from continuing operations before income taxes by $308 m illion and decreased pre-tax operating income by $122 million. The out of period adjustments primarily related to impairments of Other invested assets and changes in loss reserves and income tax liabilities. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG for the three-month periods ended September 30, 2015, June 30, 2015 and March 31, 2015 would have decreased by $36 million, increased by $15 million and decreased b y $16 million, respectively. |
INFORMATION PROVIDED IN CONNE65
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31, 2016 Assets: Short-term investments $ 4,424 $ - $ 13,218 $ (5,340) $ 12,302 Other investments (a) 7,154 - 308,719 - 315,873 Total investments 11,578 - 321,937 (5,340) 328,175 Cash 2 34 1,832 - 1,868 Loans to subsidiaries (b) 34,692 - 576 (35,268) - Investment in consolidated subsidiaries (b) 42,582 27,309 - (69,891) - Other assets, including deferred income taxes 24,099 239 140,743 (4,059) 161,022 Assets held for sale - - 7,199 - 7,199 Total assets $ 112,953 $ 27,582 $ 472,287 $ (114,558) $ 498,264 Liabilities: Insurance liabilities $ - $ - $ 275,120 $ - $ 275,120 Long-term debt 21,405 642 8,865 - 30,912 Other liabilities, including intercompany balances (a) 14,671 194 103,975 (9,572) 109,268 Loans from subsidiaries (b) 577 - 34,691 (35,268) - Liabilities held for sale - - 6,106 - 6,106 Total liabilities 36,653 836 428,757 (44,840) 421,406 Total AIG shareholders’ equity 76,300 26,746 42,972 (69,718) 76,300 Non-redeemable noncontrolling interests - - 558 - 558 Total equity 76,300 26,746 43,530 (69,718) 76,858 Total liabilities and equity $ 112,953 $ 27,582 $ 472,287 $ (114,558) $ 498,264 December 31, 2015 Assets: Short-term investments $ 4,042 $ - $ 9,637 $ (3,547) $ 10,132 Other investments (a) 7,425 - 320,797 - 328,222 Total investments 11,467 - 330,434 (3,547) 338,354 Cash 34 116 1,479 - 1,629 Loans to subsidiaries (b) 35,927 - 578 (36,505) - Investment in consolidated subsidiaries (b) 51,151 30,239 - (81,390) - Other assets, including deferred income taxes 23,299 258 135,690 (2,388) 156,859 Total assets $ 121,878 $ 30,613 $ 468,181 $ (123,830) $ 496,842 Liabilities: Insurance liabilities $ - $ - $ 271,645 $ - $ 271,645 Long-term debt 19,777 704 8,768 - 29,249 Other liabilities, including intercompany balances (a) 11,869 201 99,777 (6,109) 105,738 Loans from subsidiaries (b) 574 3 35,928 (36,505) - Total liabilities 32,220 908 416,118 (42,614) 406,632 Total AIG shareholders’ equity 89,658 29,705 51,511 (81,216) 89,658 Non-redeemable noncontrolling interests - - 552 - 552 Total equity 89,658 29,705 52,063 (81,216) 90,210 Total liabilities and equity $ 121,878 $ 30,613 $ 468,181 $ (123,830) $ 496,842 (a) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment. (b) Eliminated in consolidation. |
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, 2016 Revenues: Equity in earnings of consolidated subsidiaries * $ (1,269) $ (197) $ - $ 1,466 $ - Other income 516 5 52,875 (1,029) 52,367 Total revenues (753) (192) 52,875 437 52,367 Expenses: Interest expense 988 51 227 (6) 1,260 Loss on extinguishment of debt 77 - (3) - 74 Other expenses 295 16 51,819 (1,023) 51,107 Total expenses 1,360 67 52,043 (1,029) 52,441 Income (loss) from continuing operations before income tax expense (benefit) (2,113) (259) 832 1,466 (74) Income tax expense (benefit) (1,301) (21) 1,507 - 185 Income (loss) from continuing operations (812) (238) (675) 1,466 (259) Loss from discontinued operations, net of income taxes (37) - (53) - (90) Net income (loss) (849) (238) (728) 1,466 (349) Less: Net income from continuing operations attributable to noncontrolling interests - - 500 - 500 Net income (loss) attributable to AIG $ (849) $ (238) $ (1,228) $ 1,466 $ (849) Year Ended December 31, 2015 Revenues: Equity in earnings of consolidated subsidiaries * $ 3,954 $ 1,936 $ - $ (5,890) $ - Other income 88 - 58,953 (714) 58,327 Total revenues 4,042 1,936 58,953 (6,604) 58,327 Expenses: Interest expense 1,049 58 302 (128) 1,281 Loss on extinguishment of debt 703 - 46 7 756 Other expenses 1,178 44 52,374 (587) 53,009 Total expenses 2,930 102 52,722 (708) 55,046 Income (loss) from continuing operations before income tax expense (benefit) 1,112 1,834 6,231 (5,896) 3,281 Income tax expense (benefit) (1,086) (73) 2,218 - 1,059 Income (loss) from continuing operations 2,198 1,907 4,013 (5,896) 2,222 Income (loss) from discontinued operations, net of income taxes (2) - 2 - - Net income (loss) 2,196 1,907 4,015 (5,896) 2,222 Less: Net income (loss) from continuing operations attributable to noncontrolling interests - - 26 - 26 Net income (loss) attributable to AIG $ 2,196 $ 1,907 $ 3,989 $ (5,896) $ 2,196 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: Other 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 * Eliminated in consolidation. |
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, 2016 Net cash (used in) provided by operating activities $ 2,112 $ 1,707 $ 2,515 $ (3,951) $ 2,383 Cash flows from investing activities: Sales of investments 5,769 - 81,560 (11,685) 75,644 Sales of divested businesses, net 2,160 - 649 - 2,809 Purchase of investments (1,002) - (80,668) 11,685 (69,985) Loans to subsidiaries – net 1,525 - (3) (1,522) - Contributions from (to) subsidiaries - net 1,637 - - (1,637) - Net change in restricted cash - - 385 - 385 Net change in short-term investments (789) - (2,300) - (3,089) Other, net (141) - (879) - (1,020) Net cash (used in) provided by investing activities 9,159 - (1,256) (3,159) 4,744 Cash flows from financing activities: Issuance of long-term debt 3,831 - 2,123 - 5,954 Repayments of long-term debt (1,996) (63) (2,023) - (4,082) Purchase of Common Stock (11,460) - - - (11,460) Intercompany loans - net 3 (3) (1,522) 1,522 - Cash dividends paid (1,372) (1,723) (2,228) 3,951 (1,372) Other, net (309) - 2,799 1,637 4,127 Net cash (used in) financing activities (11,303) (1,789) (851) 7,110 (6,833) Effect of exchange rate changes on cash - - 52 - 52 Change in cash (32) (82) 460 - 346 Cash at beginning of year 34 116 1,479 - 1,629 Change in cash of businesses held for sale - - (107) - (107) Cash at end of year $ 2 $ 34 $ 1,832 $ - $ 1,868 Year Ended December 31, 2015 Net cash (used in) provided by operating activities $ 4,443 $ 2,314 $ 1,112 $ (4,992) $ 2,877 Cash flows from investing activities: Sales of investments 7,767 - 69,726 (4,877) 72,616 Purchase of investments (1,881) - (68,261) 4,877 (65,265) Loans to subsidiaries – net (83) - 367 (284) - Contributions from (to) subsidiaries - net 565 - - (565) - Net change in restricted cash - - 1,457 - 1,457 Net change in short-term investments 2,300 - (1,137) - 1,163 Other, net (175) - (1,334) - (1,509) Net cash (used in) provided by investing activities 8,493 - 818 (849) 8,462 Cash flows from financing activities: Issuance of long-term debt 5,540 - 1,327 - 6,867 Repayments of long-term debt (6,504) (114) (3,187) - (9,805) Intercompany loans - net (201) 3 (86) 284 - Purchase of common stock (10,691) - - - (10,691) Cash dividends paid (1,028) (2,178) (2,814) 4,992 (1,028) Other, net (44) - 2,707 565 3,228 Net cash (used in) provided by financing activities (12,928) (2,289) (2,053) 5,841 (11,429) Effect of exchange rate changes on cash - - (39) - (39) Change in cash 8 25 (162) - (129) Cash at beginning of year 26 91 1,641 - 1,758 Change in cash of businesses held for sale - - - - - Cash at end of year $ 34 $ 116 $ 1,479 $ - $ 1,629 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 (used in) 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) Intercompany loans - net 110 (280) (445) 615 - Purchase of common stock (4,902) - - - (4,902) Cash dividends paid to shareholders (712) (5,358) (14,085) 19,443 (712) Other, net (28) - (4,821) 148 (4,701) Net cash (used in) provided by 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 |
Supplementary disclosure of non-cash activities | Years Ended December 31, (in millions) 2016 2015 2014 Intercompany non-cash financing and investing activities: Capital contributions $ 3,245 $ 494 $ 2,457 Dividends received in the form of securities 5,234 2,326 3,088 Return of capital * - - 4,836 Fixed maturity securities received in exchange for equity securities 440 - - Non-cash financing/investing activities: Non-cash consideration received from sale of shares of AerCap - 500 - Non-cash consideration received from sale of UGC 1,101 - - * Includes $ 4.8 billion return of capital from AIG Capital Corporation related to the sale of ILFC. |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ / shares in Units, shares in Millions, $ in Millions | Nov. 18, 2016USD ($) | Sep. 16, 2016USD ($) | May 14, 2014USD ($)shares | Aug. 31, 2015USD ($)shares | Jun. 30, 2015USD ($)shares | Dec. 31, 2016USD ($)item$ / shares | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)item$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Nov. 17, 2016USD ($) | Aug. 31, 2016USD ($) | May 13, 2014$ / shares |
Basis of Presentation [Line Items] | |||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 2.5 | $ 2.5 | $ 2.5 | $ 2.5 | |||||||||||||||
Closing price per share (in dollars per share) | $ / shares | $ 65.31 | $ 61.97 | $ 65.31 | $ 61.97 | $ 56.01 | ||||||||||||||
Investment Maturity Year | 2,045 | ||||||||||||||||||
Interest rate (as a percent) | 6.50% | 6.50% | |||||||||||||||||
Net income (loss) attributable to AIG | $ (3,041) | $ 462 | $ 1,913 | $ (183) | $ (1,841) | $ (231) | $ 1,800 | $ 2,468 | $ (849) | $ 2,196 | $ 7,529 | ||||||||
Income (loss) from continuing operations before income tax expense | (3,455) | 737 | 2,858 | (214) | (2,932) | (115) | 2,552 | 3,776 | (74) | 3,281 | 10,501 | ||||||||
Net income (loss) on sale of properties and divested businesses | (194) | (128) | (225) | 2 | 1 | 3 | 1 | 6 | 545 | (11) | 2,197 | ||||||||
Repayments of Long-term Debt | 4,082 | 9,805 | 16,160 | ||||||||||||||||
Other Income | 3,121 | 4,088 | 6,117 | ||||||||||||||||
Income (Loss) from Continuing Operations Attributable to Noncontrolling Interest | 535 | (26) | 11 | (20) | (8) | 34 | (9) | 9 | 500 | 26 | (5) | ||||||||
Adjustment | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Net income (loss) attributable to AIG | (154) | ||||||||||||||||||
Income (loss) from continuing operations before income tax expense | (12) | ||||||||||||||||||
Operating Income Loss | (1) | ||||||||||||||||||
Adjustments 2015 [Member] | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Net income (loss) attributable to AIG | (308) | (36) | 15 | (16) | (156) | (51) | |||||||||||||
Income (loss) from continuing operations before income tax expense | (193) | (376) | |||||||||||||||||
Operating Income Loss | (122) | (235) | |||||||||||||||||
Adjustments 2016 [Member] | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Net income (loss) attributable to AIG | (65) | $ 66 | $ 19 | $ (88) | $ 22 | $ 5 | $ (5) | (174) | $ (67) | (12) | |||||||||
Income (loss) from continuing operations before income tax expense | (57) | ||||||||||||||||||
Operating Income Loss | (6) | ||||||||||||||||||
Call Option [Member] | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Investment Maturity Year | 2,025 | ||||||||||||||||||
ILFC | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Percentage of common stock agreed to be sold | 100.00% | ||||||||||||||||||
Number of shares received | shares | 97.6 | ||||||||||||||||||
Non-cash consideration received from sale | $ 4,586 | ||||||||||||||||||
Total consideration | $ 7,600 | ||||||||||||||||||
NSM | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Total consideration | $ 201 | ||||||||||||||||||
Net income (loss) on sale of properties and divested businesses | $ 105 | ||||||||||||||||||
Ascot | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Consideration in cash | $ 244 | ||||||||||||||||||
Total consideration | $ 1,100 | ||||||||||||||||||
Net income (loss) on sale of properties and divested businesses | $ 162 | ||||||||||||||||||
Voting interest in subsidiary, Percent | 100.00% | ||||||||||||||||||
Ownership reflecting consideration, Percent | 20.00% | ||||||||||||||||||
United Guaranty | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Consideration in cash | 2,200 | ||||||||||||||||||
Non-cash consideration received from sale | 1,101 | ||||||||||||||||||
Total consideration | 3,300 | $ 3,300 | |||||||||||||||||
Net income (loss) on sale of properties and divested businesses | $ 697 | ||||||||||||||||||
Voting interest in subsidiary, Percent | 100.00% | 100.00% | |||||||||||||||||
Dividend-in-lieu | $ 261 | ||||||||||||||||||
Korea Fund | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Income (loss) from continuing operations before income tax expense | 464 | ||||||||||||||||||
Total consideration | $ 2,500 | ||||||||||||||||||
Repayments of Long-term Debt | 1,200 | ||||||||||||||||||
Other Income | $ 1,100 | ||||||||||||||||||
Minimum | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Number of Countries in which the entity operates | item | 80 | 80 | |||||||||||||||||
Aer Cap | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Closing price per share (in dollars per share) | $ / shares | $ 47.01 | ||||||||||||||||||
Equity Method Investment Number Of Shares Sold | shares | 86.9 | ||||||||||||||||||
Cash Proceeds from Sales of AerCap | $ 500 | $ 3,700 | |||||||||||||||||
Ordinary shares of AerCap remaining | shares | 10.7 | ||||||||||||||||||
Aer Cap | Private Placement [Member] | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Equity Method Investment Number Of Shares Sold | shares | 15.7 | ||||||||||||||||||
Cash Proceeds from Sales of AerCap | $ 250 | ||||||||||||||||||
Non-cash consideration received from sale | $ 500 | ||||||||||||||||||
Aer Cap | Underwritten Public Offering [Member] | |||||||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||||||
Equity Method Investment Number Of Shares Sold | shares | 71.2 | ||||||||||||||||||
Cash Proceeds from Sales of AerCap | $ 3,400 |
SUMMARY OF SIGNIFICANT ACCOUN67
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other significant accounting policies) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Line Items] | |||
Earning pattern of a quota share reinsurance contract | 24 months | ||
Other income | |||
Proceeds from legal settlements | $ 44 | $ 94 | $ 804 |
Premiums and other receivables | |||
Allowance for doubtful accounts on premiums and other receivables | $ 279 | $ 333 | $ 428 |
SUMMARY OF SIGNIFICANT ACCOUN68
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other Assets and PPE) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other assets | |||
Deferred bonus interest and deferred sales inducement assets | $ 808 | $ 845 | |
Amortization expense associated with deferred bonus interest and deferred sales inducement assets | $ 77 | $ 88 | $ 63 |
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 -
SEGMENT INFORMATION (Details - Continuing operations by reportable segment) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | $ 13,010 | $ 12,854 | $ 14,724 | $ 11,779 | $ 13,831 | $ 12,822 | $ 15,699 | $ 15,975 | $ 52,367 | $ 58,327 | $ 64,406 |
Net investment income | 14,065 | 14,053 | 16,079 | ||||||||
Interest Expense | 1,260 | 1,281 | 1,718 | ||||||||
Amortization of deferred acquisition costs | 4,521 | 5,236 | 5,330 | ||||||||
Revenues and pre-tax income | $ (3,455) | $ 737 | $ 2,858 | $ (214) | $ (2,932) | $ (115) | $ 2,552 | $ 3,776 | (74) | 3,281 | 10,501 |
Commercial Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 21,368 | 23,136 | 24,662 | ||||||||
Net investment income | 3,268 | 3,421 | 4,255 | ||||||||
Interest Expense | 17 | 8 | 1 | ||||||||
Amortization of deferred acquisition costs | 2,049 | 2,349 | 2,497 | ||||||||
Revenues and pre-tax income | (2,735) | 565 | 4,247 | ||||||||
Consumer Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 24,049 | 24,530 | 25,713 | ||||||||
Net investment income | 7,345 | 7,356 | 7,924 | ||||||||
Interest Expense | 100 | 54 | 27 | ||||||||
Amortization of deferred acquisition costs | 2,681 | 2,762 | 2,655 | ||||||||
Revenues and pre-tax income | 3,849 | 2,929 | 4,206 | ||||||||
Other Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 4,018 | 4,650 | 3,596 | ||||||||
Net investment income | 770 | 706 | 749 | ||||||||
Interest Expense | 983 | 1,030 | 1,291 | ||||||||
Amortization of deferred acquisition costs | 76 | 49 | 45 | ||||||||
Revenues and pre-tax income | (748) | (567) | (958) | ||||||||
Legacy portfolio [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 5,250 | 5,771 | 7,353 | ||||||||
Net investment income | 2,913 | 2,928 | 3,245 | ||||||||
Interest Expense | 260 | 280 | 390 | ||||||||
Amortization of deferred acquisition costs | 108 | 102 | 81 | ||||||||
Revenues and pre-tax income | 1,007 | 1,133 | 2,576 | ||||||||
Reportable Subsegments [Member] | Commercial Insurance | Liability And Financial Lines [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 13,270 | 14,684 | 16,012 | ||||||||
Net investment income | 2,700 | 2,818 | 3,410 | ||||||||
Interest Expense | 10 | 5 | 1 | ||||||||
Amortization of deferred acquisition costs | 1,098 | 1,439 | 1,464 | ||||||||
Revenues and pre-tax income | (2,649) | (661) | 3,044 | ||||||||
Reportable Subsegments [Member] | Commercial Insurance | Property And Special Risks [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 8,098 | 8,452 | 8,650 | ||||||||
Net investment income | 568 | 603 | 845 | ||||||||
Interest Expense | 7 | 3 | 0 | ||||||||
Amortization of deferred acquisition costs | 951 | 910 | 1,033 | ||||||||
Revenues and pre-tax income | (86) | 1,226 | 1,203 | ||||||||
Reportable Subsegments [Member] | Consumer Insurance | Individual Retirement [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 5,758 | 6,450 | 6,739 | ||||||||
Net investment income | 3,878 | 3,805 | 4,103 | ||||||||
Interest Expense | 49 | 27 | 14 | ||||||||
Amortization of deferred acquisition costs | 298 | 431 | 315 | ||||||||
Revenues and pre-tax income | 2,269 | 1,812 | 2,306 | ||||||||
Reportable Subsegments [Member] | Consumer Insurance | Group Retirement [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 2,769 | 2,834 | 3,005 | ||||||||
Net investment income | 2,146 | 2,192 | 2,349 | ||||||||
Interest Expense | 27 | 15 | 8 | ||||||||
Amortization of deferred acquisition costs | 129 | 50 | 31 | ||||||||
Revenues and pre-tax income | 931 | 1,100 | 1,229 | ||||||||
Reportable Subsegments [Member] | Consumer Insurance | Personal Insurance [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 11,704 | 11,475 | 12,339 | ||||||||
Net investment income | 286 | 325 | 372 | ||||||||
Interest Expense | 11 | 5 | 1 | ||||||||
Amortization of deferred acquisition costs | 2,072 | 1,970 | 2,088 | ||||||||
Revenues and pre-tax income | 686 | 68 | 381 | ||||||||
Reportable Subsegments [Member] | Consumer Insurance | Life Insurance [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 3,818 | 3,771 | 3,630 | ||||||||
Net investment income | 1,035 | 1,034 | 1,100 | ||||||||
Interest Expense | 13 | 7 | 4 | ||||||||
Amortization of deferred acquisition costs | 182 | 311 | 221 | ||||||||
Revenues and pre-tax income | (37) | (51) | 290 | ||||||||
Reclassification and Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 437 | (6,604) | (13,378) | ||||||||
Interest Expense | (6) | (128) | (132) | ||||||||
Consolidation and Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | (494) | (496) | (323) | ||||||||
Net investment income | (351) | (315) | (354) | ||||||||
Interest Expense | (100) | (91) | 9 | ||||||||
Amortization of deferred acquisition costs | (117) | (26) | (4) | ||||||||
Revenues and pre-tax income | 42 | (76) | (19) | ||||||||
Total Operating segments corporate and other eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 54,191 | 57,591 | 61,001 | ||||||||
Net investment income | 13,945 | 14,096 | 15,819 | ||||||||
Interest Expense | 1,260 | 1,281 | 1,718 | ||||||||
Amortization of deferred acquisition costs | 4,797 | 5,236 | 5,274 | ||||||||
Revenues and pre-tax income | $ 1,415 | $ 3,984 | $ 10,052 |
SEGMENT INFORMATION (Details 70
SEGMENT INFORMATION (Details - Continuing operations by reportable segment - Pretax operating income to pre-tax income)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciling items from Operating revenues and Pre-tax operating income (loss) to revenues and pre-tax income (loss): | |||||||||||
Net gains (loss) on extinguishment of debt | $ 2 | $ 14 | $ (7) | $ (83) | $ 0 | $ (346) | $ (342) | $ (68) | $ (74) | $ (756) | $ (2,282) |
Net reserve discount benefit (charge) | 422 | 71 | (478) | ||||||||
Restructuring and other costs | 206 | 210 | 90 | 188 | 222 | 274 | 0 | 0 | |||
Revenues and pre-tax income | $ (3,455) | $ 737 | $ 2,858 | $ (214) | $ (2,932) | $ (115) | $ 2,552 | $ 3,776 | (74) | 3,281 | 10,501 |
Reconciling items from pre-tax operating income to pre-tax income | Revenue | |||||||||||
Reconciling items from Operating revenues and Pre-tax operating income (loss) to revenues and pre-tax income (loss): | |||||||||||
Changes in fair values of securities used to hedge guaranteed living benefits | 120 | (43) | 260 | ||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | 0 | 0 | 0 | ||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||
Net gains (loss) on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | (1,944) | 776 | 739 | ||||||||
Net gain (loss) on sale of divested businesses | 0 | (48) | 1,602 | ||||||||
Non-operating litigation reserves and settlements | 44 | 94 | 804 | ||||||||
Reserve development related to non-operating run-off insurance business | 0 | 0 | 0 | ||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Other | (44) | (43) | 0 | ||||||||
Revenues and pre-tax income | 52,367 | 58,327 | 64,406 | ||||||||
Reconciling items from pre-tax operating income to pre-tax income | Net investment income | |||||||||||
Reconciling items from Operating revenues and Pre-tax operating income (loss) to revenues and pre-tax income (loss): | |||||||||||
Changes in fair values of securities used to hedge guaranteed living benefits | 120 | (43) | 260 | ||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | 0 | 0 | 0 | ||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||
Net gains (loss) on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | 0 | 0 | 0 | ||||||||
Net gain (loss) on sale of divested businesses | 0 | 0 | 0 | ||||||||
Non-operating litigation reserves and settlements | 0 | 0 | 0 | ||||||||
Reserve development related to non-operating run-off insurance business | 0 | 0 | 0 | ||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Revenues and pre-tax income | 14,065 | 14,053 | 16,079 | ||||||||
Reconciling items from pre-tax operating income to pre-tax income | Interest expense | |||||||||||
Reconciling items from Operating revenues and Pre-tax operating income (loss) to revenues and pre-tax income (loss): | |||||||||||
Changes in fair values of securities used to hedge guaranteed living benefits | 0 | 0 | 0 | ||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | 0 | 0 | 0 | ||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||
Net gains (loss) on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | 0 | 0 | 0 | ||||||||
Net gain (loss) on sale of divested businesses | 0 | 0 | 0 | ||||||||
Non-operating litigation reserves and settlements | 0 | 0 | 0 | ||||||||
Reserve development related to non-operating run-off insurance business | 0 | 0 | 0 | ||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Revenues and pre-tax income | 1,260 | 1,281 | 1,718 | ||||||||
Reconciling items from pre-tax operating income to pre-tax income | Pre-Tax Operating Income (loss) | |||||||||||
Reconciling items from Operating revenues and Pre-tax operating income (loss) to revenues and pre-tax income (loss): | |||||||||||
Changes in fair values of securities used to hedge guaranteed living benefits | 120 | (43) | 260 | ||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | 195 | (15) | (217) | ||||||||
Other income (expense) - net | 42 | (233) | 0 | ||||||||
Net gains (loss) on extinguishment of debt | (74) | (756) | (2,282) | ||||||||
Net realized capital gains (losses) | (1,944) | 776 | 739 | ||||||||
Net gain (loss) on sale of divested businesses | 545 | (59) | 2,169 | ||||||||
Non-operating litigation reserves and settlements | 41 | 82 | 258 | ||||||||
Reserve development related to non-operating run-off insurance business | 0 | (30) | 0 | ||||||||
Net reserve discount benefit (charge) | 427 | 71 | (478) | ||||||||
Pension expense related to a one-time lump sum payment to former employees | (147) | ||||||||||
Restructuring and other costs | (694) | (496) | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Revenues and pre-tax income | (74) | 3,281 | 10,501 | ||||||||
Reconciling items from pre-tax operating income to pre-tax income | Depreciation and Amortization | |||||||||||
Reconciling items from Operating revenues and Pre-tax operating income (loss) to revenues and pre-tax income (loss): | |||||||||||
Changes in fair values of securities used to hedge guaranteed living benefits | 0 | 0 | |||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains | (276) | 0 | 56 | ||||||||
Other income (expense) - net | 0 | 0 | |||||||||
Net gains (loss) on extinguishment of debt | 0 | 0 | |||||||||
Net realized capital gains (losses) | 0 | 0 | |||||||||
Net gain (loss) on sale of divested businesses | 0 | 0 | |||||||||
Non-operating litigation reserves and settlements | 0 | 0 | |||||||||
Reserve development related to non-operating run-off insurance business | 0 | 0 | |||||||||
Restructuring and other costs | 0 | 0 | |||||||||
Other | 0 | 0 | |||||||||
Revenues and pre-tax income | $ 4,521 | $ 5,236 | $ 5,330 |
SEGMENT INFORMATION (Details 71
SEGMENT INFORMATION (Details - Identifiable assets and capital expenditures by reportable segment) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | $ 498,264 | $ 496,842 |
Capital Expenditures | 1,119 | 1,722 |
Property Casualty Insurance Companies [Member] | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 118,268 | 114,134 |
Capital Expenditures | 685 | 965 |
Life Insurance Companies [Member] | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 207,145 | 258,003 |
Capital Expenditures | 85 | 102 |
Other Insurance Companies [Member] | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 184,704 | 136,487 |
Capital Expenditures | 349 | 655 |
Reclassification and Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | (114,558) | (123,830) |
Consolidation and Eliminations | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | (11,853) | (11,782) |
Capital Expenditures | $ 0 | $ 0 |
SEGMENT INFORMATION (Details 72
SEGMENT INFORMATION (Details - Consolidated operations and long-lived assets by major geographic area) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | $ 13,010 | $ 12,854 | $ 14,724 | $ 11,779 | $ 13,831 | $ 12,822 | $ 15,699 | $ 15,975 | $ 52,367 | $ 58,327 | $ 64,406 |
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 2,660 | 3,135 | 2,660 | 3,135 | 2,700 | ||||||
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 37,405 | 41,623 | 40,291 | ||||||||
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 734 | 912 | 734 | 912 | 819 | ||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 4,613 | 5,772 | 6,140 | ||||||||
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 145 | 171 | 145 | 171 | 154 | ||||||
JAPAN | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 3,636 | 4,293 | 3,641 | ||||||||
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 524 | 449 | 524 | 449 | 400 | ||||||
Other Foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 6,713 | 6,639 | 14,334 | ||||||||
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | $ 1,257 | $ 1,603 | $ 1,257 | $ 1,603 | $ 1,327 |
HELD-FOR-SALE CLASSIFICATION (D
HELD-FOR-SALE CLASSIFICATION (Details) - USD ($) $ in Millions | Nov. 18, 2016 | Nov. 14, 2016 | Oct. 18, 2016 | Sep. 16, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 15, 2016 | Dec. 31, 2013 |
Held-for-Sale Classification | |||||||||||||||||
Net income (loss) on sale of properties and divested businesses | $ (194) | $ (128) | $ (225) | $ 2 | $ 1 | $ 3 | $ 1 | $ 6 | $ 545 | $ (11) | $ 2,197 | ||||||
Assets: | |||||||||||||||||
Mortgage and other loans receivable, net | 33,240 | 29,565 | 33,240 | 29,565 | |||||||||||||
Other invested assets | 24,538 | 29,794 | 24,538 | 29,794 | |||||||||||||
Short-term investments | 12,302 | 10,132 | 12,302 | 10,132 | |||||||||||||
Cash | 1,868 | 1,629 | 1,868 | 1,629 | 1,758 | $ 2,241 | |||||||||||
Accrued investment income | 2,495 | 2,623 | 2,495 | 2,623 | |||||||||||||
Premiums and other receivables, net of allowance | 10,465 | 11,451 | 10,465 | 11,451 | |||||||||||||
Reinsurance assets, net of allowance | 21,901 | 20,413 | 21,901 | 20,413 | |||||||||||||
Deferred policy acquisition costs | 11,042 | 11,115 | 11,042 | 11,115 | 9,828 | 9,436 | |||||||||||
Other assets | 10,815 | 11,289 | 10,815 | 11,289 | |||||||||||||
Total assets held for sale | 7,199 | 7,199 | |||||||||||||||
Liabilities: | |||||||||||||||||
Liability for unpaid losses and loss adjustment expenses | 77,077 | 74,942 | 77,077 | 74,942 | $ 77,260 | $ 81,547 | |||||||||||
Unearned premiums | 19,634 | 21,318 | 19,634 | 21,318 | |||||||||||||
Future policy benefits for life and accident and health insurance contracts | 42,204 | 43,585 | 42,204 | 43,585 | |||||||||||||
Other policyholder funds | 3,989 | 4,212 | 3,989 | 4,212 | |||||||||||||
Long-term Debt | 30,912 | 29,249 | 30,912 | 29,249 | |||||||||||||
Other Liabilities | 26,296 | $ 26,164 | 26,296 | $ 26,164 | |||||||||||||
Total liabilities held for sale | 6,106 | 6,106 | |||||||||||||||
Held for sale [Member] | |||||||||||||||||
Assets: | |||||||||||||||||
Fixed maturity securities | 6,045 | 6,045 | |||||||||||||||
Equity Securities | 149 | 149 | |||||||||||||||
Mortgage and other loans receivable, net | 137 | 137 | |||||||||||||||
Other invested assets | 2 | 2 | |||||||||||||||
Short-term investments | 130 | 130 | |||||||||||||||
Cash | 133 | 133 | |||||||||||||||
Accrued investment income | 21 | 21 | |||||||||||||||
Premiums and other receivables, net of allowance | 351 | 351 | |||||||||||||||
Reinsurance assets, net of allowance | 8 | 8 | |||||||||||||||
Deferred policy acquisition costs | 471 | 471 | |||||||||||||||
Other assets | 273 | 273 | |||||||||||||||
Assets of businesses held for sale | 7,720 | 7,720 | |||||||||||||||
Less: Loss Accrual | (521) | (521) | |||||||||||||||
Total assets held for sale | 7,199 | 7,199 | |||||||||||||||
Liabilities: | |||||||||||||||||
Liability for unpaid losses and loss adjustment expenses | 402 | 402 | |||||||||||||||
Unearned premiums | 297 | 297 | |||||||||||||||
Future policy benefits for life and accident and health insurance contracts | 4,579 | 4,579 | |||||||||||||||
Other policyholder funds | 378 | 378 | |||||||||||||||
Long-term Debt | 0 | 0 | |||||||||||||||
Other Liabilities | 450 | 450 | |||||||||||||||
Total liabilities held for sale | $ 6,106 | $ 6,106 | |||||||||||||||
United Guaranty | |||||||||||||||||
Held-for-Sale Classification | |||||||||||||||||
Voting interest in subsidiary, Percent | 100.00% | 100.00% | |||||||||||||||
Total consideration | $ 3,300 | $ 3,300 | |||||||||||||||
Consideration in cash | 2,200 | ||||||||||||||||
Non-cash consideration received from sale | 1,101 | ||||||||||||||||
Dividend-in-lieu | 261 | ||||||||||||||||
Net income (loss) on sale of properties and divested businesses | 697 | ||||||||||||||||
United Guaranty | Held for sale [Member] | |||||||||||||||||
Held-for-Sale Classification | |||||||||||||||||
Voting interest in subsidiary, Percent | 100.00% | ||||||||||||||||
Total consideration | $ 3,300 | 3,300 | |||||||||||||||
Consideration in cash | 2,200 | ||||||||||||||||
Cash consideration retained by buyer | 40 | ||||||||||||||||
Dividend-in-lieu | 261 | ||||||||||||||||
United Guaranty | Held for sale [Member] | Convertible Preferred Stock [Member] | |||||||||||||||||
Held-for-Sale Classification | |||||||||||||||||
Non-cash consideration received from sale | $ 1,100 | ||||||||||||||||
Ascot | |||||||||||||||||
Held-for-Sale Classification | |||||||||||||||||
Voting interest in subsidiary, Percent | 100.00% | ||||||||||||||||
Total consideration | $ 1,100 | ||||||||||||||||
Consideration in cash | $ 244 | ||||||||||||||||
Net income (loss) on sale of properties and divested businesses | $ 162 | ||||||||||||||||
Ownership reflecting consideration, Percent | 20.00% | ||||||||||||||||
AIG Fuji Life Insurance | |||||||||||||||||
Held-for-Sale Classification | |||||||||||||||||
Net income (loss) on sale of properties and divested businesses | $ (467) | ||||||||||||||||
AIG Fuji Life Insurance | Held for sale [Member] | |||||||||||||||||
Held-for-Sale Classification | |||||||||||||||||
Consideration in cash | $ 346 | ||||||||||||||||
Certain insurance operations | Held for sale [Member] | |||||||||||||||||
Held-for-Sale Classification | |||||||||||||||||
Consideration in cash | $ 240 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details - Long Term Debt) | Dec. 31, 2016 | Jun. 30, 2015 |
Debt Instrument [Line Items] | ||
Range of guaranteed minimum return rates (as a percent) | 6.50% | |
Borrowings supported by assets | GIAs | ||
Debt Instrument [Line Items] | ||
Range of guaranteed minimum return rates (as a percent) | 7.62% | |
Borrowings supported by assets | GIAs | Maximum | ||
Debt Instrument [Line Items] | ||
Range of guaranteed minimum return rates (as a percent) | 7.62% | |
Borrowings supported by assets | GIAs | Minimum | ||
Debt Instrument [Line Items] | ||
Range of guaranteed minimum return rates (as a percent) | 0.50% |
FAIR VALUE MEASUREMENTS (Deta75
FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | $ 241,537 | $ 248,245 |
Other bond securities | 13,998 | 16,782 |
Equity securities available for sale | 2,078 | 2,915 |
Other equity securities | 482 | 921 |
Other invested assets | 6,946 | 8,912 |
Derivative Assets, Fair Value | 3,977 | 4,131 |
Derivative assets, Counterparty netting | (1,265) | (1,268) |
Derivative assets, Cash collateral | (903) | (1,554) |
Short-term investments, portion measured at fair value | 3,341 | 2,591 |
Separate account assets, at fair value | 82,972 | 79,574 |
Other assets | 1,809 | 1,309 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 3,058 | 2,325 |
Other policyholder funds | 3,989 | 4,212 |
Derivative Liabilities, Fair Value | 4,802 | 4,048 |
Derivative liabilities, Counterparty netting | (1,265) | (1,268) |
Derivative liabilities, Cash collateral | (1,521) | (760) |
Long-term debt, portion measured at fair value | 3,428 | 3,670 |
Other liabilities | 2,016 | 2,082 |
Recurring Basis | U.S. government and government sponsored entities | ||
Fair Value, Liabilities Measured on Recurring Basis | ||
Assets transferred from Level 1 to Level 2 | 34 | 181 |
Recurring Basis | Non-U.S. government | ||
Fair Value, Liabilities Measured on Recurring Basis | ||
Assets transferred from Level 1 to Level 2 | 1,074 | 695 |
Recurring Basis | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 115 | 683 |
Other bond securities | 0 | 0 |
Equity securities available for sale | 2,068 | 2,914 |
Other equity securities | 482 | 906 |
Mortgage and other loans receivable | 0 | |
Other invested assets | 0 | 2 |
Derivative Assets, Fair Value | 188 | 91 |
Short-term investments, portion measured at fair value | 2,660 | 1,416 |
Separate account assets, at fair value | 77,318 | 73,699 |
Fair value assets measured on recurring basis, total | 82,831 | 79,711 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Other policyholder funds | 5 | 6 |
Derivative Liabilities, Fair Value | 12 | |
Other liabilities | 0 | 0 |
Fair value liabilities measured on recurring basis, total | 17 | 6 |
Recurring Basis | Level 1 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 0 | 0 |
Recurring Basis | Level 1 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 188 | 91 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 12 | |
Recurring Basis | Level 1 | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 63 | 0 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Non-U.S. government | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 52 | 683 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 1,056 | 2,401 |
Recurring Basis | Level 1 | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 752 | 22 |
Recurring Basis | Level 1 | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 260 | 491 |
Recurring Basis | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 211,451 | 218,745 |
Other bond securities | 6,518 | 7,936 |
Equity securities available for sale | 10 | 1 |
Other equity securities | 0 | 1 |
Mortgage and other loans receivable | 0 | |
Other invested assets | 1 | 1 |
Derivative Assets, Fair Value | 3,713 | 3,950 |
Short-term investments, portion measured at fair value | 681 | 1,175 |
Separate account assets, at fair value | 5,654 | 5,875 |
Other assets | 0 | |
Fair value assets measured on recurring basis, total | 228,028 | 237,684 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 25 | 36 |
Other policyholder funds | 0 | |
Derivative Liabilities, Fair Value | 4,405 | 3,402 |
Long-term debt, portion measured at fair value | 3,357 | 3,487 |
Other liabilities | 0 | 62 |
Fair value liabilities measured on recurring basis, total | 7,787 | 6,987 |
Recurring Basis | Level 2 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 2,328 | 3,150 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 3,039 | 2,137 |
Recurring Basis | Level 2 | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 1,320 | 766 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 1,358 | 1,197 |
Recurring Basis | Level 2 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 59 | 32 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 7 | 68 |
Recurring Basis | Level 2 | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 6 | 2 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 1 | 0 |
Recurring Basis | Level 2 | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 1,929 | 1,844 |
Other bond securities | 2,939 | 3,369 |
Recurring Basis | Level 2 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 22,732 | 25,199 |
Other bond securities | 0 | 75 |
Recurring Basis | Level 2 | Non-U.S. government | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 14,466 | 17,480 |
Other bond securities | 51 | 50 |
Recurring Basis | Level 2 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 131,047 | 134,618 |
Other bond securities | 1,755 | 2,018 |
Recurring Basis | Level 2 | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 20,468 | 19,690 |
Other bond securities | 420 | 649 |
Recurring Basis | Level 2 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 12,231 | 10,986 |
Other bond securities | 448 | 557 |
Recurring Basis | Level 2 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 8,578 | 8,928 |
Other bond securities | 905 | 1,218 |
Recurring Basis | Level 2 | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 9 | 0 |
Recurring Basis | Level 2 | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 0 | 0 |
Recurring Basis | Level 2 | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 1 | 1 |
Recurring Basis | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 29,971 | 28,817 |
Other bond securities | 7,480 | 8,846 |
Equity securities available for sale | 0 | 0 |
Other equity securities | 0 | 14 |
Mortgage and other loans receivable | 11 | 11 |
Other invested assets | 204 | 332 |
Derivative Assets, Fair Value | 76 | 90 |
Fair value assets measured on recurring basis, total | 37,742 | 38,110 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 3,033 | 2,289 |
Derivative Liabilities, Fair Value | 385 | 646 |
Long-term debt, portion measured at fair value | 71 | 183 |
Fair value liabilities measured on recurring basis, total | 3,489 | 3,118 |
Recurring Basis | Level 3 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 0 | 12 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 38 | 62 |
Recurring Basis | Level 3 | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 11 | 7 |
Recurring Basis | Level 3 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 58 | 54 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 0 | 0 |
Recurring Basis | Level 3 | Credit contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 2 | 3 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 331 | 508 |
Recurring Basis | Level 3 | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 16 | 21 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 5 | 69 |
Recurring Basis | Level 3 | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 3 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 2,040 | 2,124 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 3 | Non-U.S. government | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 17 | 32 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 3 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 1,133 | 1,370 |
Other bond securities | 17 | 17 |
Recurring Basis | Level 3 | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 16,906 | 16,537 |
Other bond securities | 1,605 | 1,581 |
Recurring Basis | Level 3 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 2,040 | 2,585 |
Other bond securities | 155 | 193 |
Recurring Basis | Level 3 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 7,835 | 6,169 |
Other bond securities | 5,703 | 7,055 |
Recurring Basis | Level 3 | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 0 | |
Recurring Basis | Level 3 | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 0 | |
Recurring Basis | Level 3 | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 0 | |
Recurring Basis | Counterparty Netting | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, Counterparty netting | (1,265) | (1,268) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, Counterparty netting | (1,265) | (1,268) |
Recurring Basis | Counterparty Netting | Counterparty netting and cash collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, Counterparty netting | (1,265) | (1,268) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, Counterparty netting | (1,265) | (1,268) |
Recurring Basis | Cash Collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, Cash collateral | (903) | (1,554) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, Cash collateral | (1,521) | (760) |
Recurring Basis | Cash Collateral | Counterparty netting and cash collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative assets, Cash collateral | (903) | (1,554) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative liabilities, Cash collateral | (1,521) | (760) |
Recurring Basis | Total Fair Value | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 241,537 | 248,245 |
Other bond securities | 13,998 | 16,782 |
Equity securities available for sale | 2,078 | 2,915 |
Other equity securities | 482 | 921 |
Mortgage and other loans receivable | 11 | 11 |
Other invested assets | 205 | 335 |
Derivative Assets, Fair Value | 1,809 | 1,309 |
Short-term investments, portion measured at fair value | 3,341 | 2,591 |
Separate account assets, at fair value | 82,972 | 79,574 |
Other assets | 0 | |
Fair value assets measured on recurring basis, total | 346,433 | 352,683 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 3,058 | 2,325 |
Other policyholder funds | 5 | 6 |
Derivative Liabilities, Fair Value | 2,016 | 2,020 |
Long-term debt, portion measured at fair value | 3,428 | 3,670 |
Other liabilities | 0 | 62 |
Fair value liabilities measured on recurring basis, total | 8,507 | 8,083 |
Recurring Basis | Total Fair Value | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 2,328 | 3,162 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 3,077 | 2,199 |
Recurring Basis | Total Fair Value | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 1,320 | 766 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 1,369 | 1,204 |
Recurring Basis | Total Fair Value | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 305 | 177 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 19 | 68 |
Recurring Basis | Total Fair Value | Credit contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 2 | 3 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 331 | 508 |
Recurring Basis | Total Fair Value | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | 22 | 23 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | 6 | 69 |
Recurring Basis | Total Fair Value | Counterparty netting and cash collateral | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value | (2,168) | (2,822) |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value | (2,786) | (2,028) |
Recurring Basis | Total Fair Value | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 1,992 | 1,844 |
Other bond securities | 2,939 | 3,369 |
Recurring Basis | Total Fair Value | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 24,772 | 27,323 |
Other bond securities | 0 | 75 |
Recurring Basis | Total Fair Value | Non-U.S. government | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 14,535 | 18,195 |
Other bond securities | 51 | 50 |
Recurring Basis | Total Fair Value | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 132,180 | 135,988 |
Other bond securities | 1,772 | 2,035 |
Recurring Basis | Total Fair Value | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 37,374 | 36,227 |
Other bond securities | 2,025 | 2,230 |
Recurring Basis | Total Fair Value | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 14,271 | 13,571 |
Other bond securities | 603 | 750 |
Recurring Basis | Total Fair Value | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 16,413 | 15,097 |
Other bond securities | 6,608 | 8,273 |
Recurring Basis | Total Fair Value | Common Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 1,065 | 2,401 |
Recurring Basis | Total Fair Value | Preferred Stock | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | 752 | 22 |
Recurring Basis | Total Fair Value | Mutual Funds | ||
Fair Value, Assets Measured on Recurring Basis | ||
Equity securities available for sale | $ 261 | $ 492 |
FAIR VALUE MEASUREMENTS (Deta76
FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | $ 38,020 | $ 39,655 |
Net Realized and Unrealized Gains (Losses) Included in Income | 1,380 | 2,418 |
Other Comprehensive Income (Loss) | (321) | (1,576) |
Purchases, Sales, Issues and Settlements, Net | (1,275) | (2,463) |
Gross Transfers in, assets | 1,364 | 2,305 |
Gross Transfers out, assets | (1,485) | (2,319) |
Divested Businesses | (14) | |
Reclassified to Assets Held for Sale | (3) | |
Balance End of Period | 37,666 | 38,020 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (410) | (129) |
Balance at the Beginning of the Period | 3,028 | 2,794 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 341 | 37 |
Accumulated Other Comprehensive Income (loss) | 0 | |
Purchases, Sales, Issues and Settlements-Net | 153 | 197 |
Gross Transfers in, liabilities | 0 | |
Gross Transfers out, liabilities | (109) | 0 |
Balance at the End of the Period | 3,413 | 3,028 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 205 | 249 |
Policyholder contract deposits | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 2,289 | 1,509 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 441 | 315 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 303 | 465 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 3,033 | 2,289 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (5) | 64 |
Derivative liabilities, net | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 556 | 1,072 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (104) | (268) |
Accumulated Other Comprehensive Income (loss) | 0 | |
Purchases, Sales, Issues and Settlements-Net | (147) | (248) |
Gross Transfers in, liabilities | 0 | |
Gross Transfers out, liabilities | 4 | 0 |
Balance at the End of the Period | 309 | 556 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 211 | 168 |
Interest rate contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 50 | 74 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (8) | 0 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (4) | (24) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 38 | 50 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 6 | (1) |
Foreign exchange contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 7 | 8 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 5 | (1) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (1) | 0 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 11 | 7 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (4) | 1 |
Equity contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | (54) | (47) |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (10) | (2) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 6 | (5) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | (58) | (54) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 10 | (3) |
Commodity contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 0 | 0 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | 0 | 0 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 0 | 0 |
Credit contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 505 | 978 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (81) | (186) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (95) | (287) |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 0 | 0 |
Balance at the End of the Period | 329 | 505 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 71 | 95 |
Other contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 48 | 59 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (10) | (79) |
Accumulated Other Comprehensive Income (loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements-Net | (53) | 68 |
Gross Transfers in, liabilities | 0 | 0 |
Gross Transfers out, liabilities | 4 | 0 |
Balance at the End of the Period | (11) | 48 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | 128 | 76 |
Long-term debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance at the Beginning of the Period | 183 | 213 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 4 | (10) |
Accumulated Other Comprehensive Income (loss) | 0 | |
Purchases, Sales, Issues and Settlements-Net | (3) | (20) |
Gross Transfers in, liabilities | 0 | |
Gross Transfers out, liabilities | (113) | 0 |
Balance at the End of the Period | 71 | 183 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities | (1) | 17 |
Bonds available for sale | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 28,817 | 29,683 |
Net Realized and Unrealized Gains (Losses) Included in Income | 1,065 | 1,294 |
Other Comprehensive Income (Loss) | (321) | (1,066) |
Purchases, Sales, Issues and Settlements, Net | 476 | (436) |
Gross Transfers in, assets | 1,299 | 1,522 |
Gross Transfers out, assets | (1,348) | (2,180) |
Divested Businesses | (14) | |
Reclassified to Assets Held for Sale | (3) | |
Balance End of Period | 29,971 | 28,817 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
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 | 2,124 | 2,159 |
Net Realized and Unrealized Gains (Losses) Included in Income | 5 | 1 |
Other Comprehensive Income (Loss) | 0 | (85) |
Purchases, Sales, Issues and Settlements, Net | 61 | 154 |
Gross Transfers in, assets | 2 | 0 |
Gross Transfers out, assets | (152) | (105) |
Balance End of Period | 2,040 | 2,124 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
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 | 32 | 30 |
Net Realized and Unrealized Gains (Losses) Included in Income | (3) | 0 |
Other Comprehensive Income (Loss) | (12) | (7) |
Purchases, Sales, Issues and Settlements, Net | 7 | 10 |
Gross Transfers in, assets | 1 | 0 |
Gross Transfers out, assets | (5) | (1) |
Reclassified to Assets Held for Sale | (3) | |
Balance End of Period | 17 | 32 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Bonds available for sale | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 1,370 | 1,883 |
Net Realized and Unrealized Gains (Losses) Included in Income | (13) | 15 |
Other Comprehensive Income (Loss) | (42) | (109) |
Purchases, Sales, Issues and Settlements, Net | (111) | (210) |
Gross Transfers in, assets | 920 | 1,515 |
Gross Transfers out, assets | (977) | (1,724) |
Divested Businesses | (14) | |
Balance End of Period | 1,133 | 1,370 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
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 | 16,537 | 16,805 |
Net Realized and Unrealized Gains (Losses) Included in Income | 970 | 1,052 |
Other Comprehensive Income (Loss) | (24) | (512) |
Purchases, Sales, Issues and Settlements, Net | (878) | (808) |
Gross Transfers in, assets | 330 | 0 |
Gross Transfers out, assets | (29) | 0 |
Balance End of Period | 16,906 | 16,537 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
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 | 2,585 | 2,696 |
Net Realized and Unrealized Gains (Losses) Included in Income | 72 | 77 |
Other Comprehensive Income (Loss) | (132) | (95) |
Purchases, Sales, Issues and Settlements, Net | (323) | 118 |
Gross Transfers in, assets | 23 | 0 |
Gross Transfers out, assets | (185) | (211) |
Balance End of Period | 2,040 | 2,585 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
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 | 6,169 | 6,110 |
Net Realized and Unrealized Gains (Losses) Included in Income | 34 | 149 |
Other Comprehensive Income (Loss) | (111) | (258) |
Purchases, Sales, Issues and Settlements, Net | 1,720 | 300 |
Gross Transfers in, assets | 23 | 7 |
Gross Transfers out, assets | 0 | (139) |
Balance End of Period | 7,835 | 6,169 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Other bond securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 8,846 | 8,923 |
Net Realized and Unrealized Gains (Losses) Included in Income | 314 | 675 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (1,662) | (1,374) |
Gross Transfers in, assets | 65 | 761 |
Gross Transfers out, assets | (83) | (139) |
Balance End of Period | 7,480 | 8,846 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (418) | (127) |
Other bond securities | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 17 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 0 | 1 |
Gross Transfers in, assets | 0 | 16 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 17 | 17 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
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 | 1,581 | 1,105 |
Net Realized and Unrealized Gains (Losses) Included in Income | 43 | 32 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (1) | 460 |
Gross Transfers in, assets | 0 | 43 |
Gross Transfers out, assets | (18) | (59) |
Balance End of Period | 1,605 | 1,581 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (24) | (27) |
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 | 193 | 369 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | (3) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (38) | (177) |
Gross Transfers in, assets | 0 | 4 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 155 | 193 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (1) | (13) |
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 | 7,055 | 7,449 |
Net Realized and Unrealized Gains (Losses) Included in Income | 271 | 646 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (1,623) | (1,658) |
Gross Transfers in, assets | 65 | 698 |
Gross Transfers out, assets | (65) | (80) |
Balance End of Period | 5,703 | 7,055 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | (393) | (87) |
Equity securities available for sale | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 0 | 1 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 2 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 0 | (3) |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Equity securities available for sale | Common Stock | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 0 | 1 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 2 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 0 | (3) |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Mortgage and other loans receivable | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 11 | 6 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | 0 | 5 |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 11 | 11 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | |
Other invested assets | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 332 | 1,042 |
Net Realized and Unrealized Gains (Losses) Included in Income | 1 | 448 |
Other Comprehensive Income (Loss) | 0 | (510) |
Purchases, Sales, Issues and Settlements, Net | (75) | (648) |
Gross Transfers in, assets | 0 | 0 |
Gross Transfers out, assets | (54) | 0 |
Balance End of Period | 204 | 332 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 8 | |
Other equity securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Balance Beginning of Period | 14 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | (1) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issues and Settlements, Net | (14) | (7) |
Gross Transfers in, assets | 0 | 22 |
Gross Transfers out, assets | 0 | 0 |
Balance End of Period | 0 | 14 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | $ 0 | $ (2) |
FAIR VALUE MEASUREMENTS (Deta77
FAIR VALUE MEASUREMENTS (Details - Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 1,380 | $ 2,418 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 341 | 37 |
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 | 441 | 315 |
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 | 441 | 315 |
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 | (104) | (268) |
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 | 0 | 0 |
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) | 1 |
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 | (96) | (269) |
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 | 4 | (10) |
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 | 4 | (10) |
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 | 1,065 | 1,294 |
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 | 1,180 | 1,227 |
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 | (118) | (49) |
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 | 3 | 116 |
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 | 314 | 675 |
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 | 110 | 44 |
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 | 44 | 3 |
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 | 160 | 628 |
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 | 0 | 2 |
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 | |
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 | 2 |
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 | |
Other 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 | 0 | (1) |
Other 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 | |
Other 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 | |
Other 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 | (1) |
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 | 1 | 448 |
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 | 13 | (10) |
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 | 39 | 393 |
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 | $ (51) | $ 65 |
FAIR VALUE MEASUREMENTS (Deta78
FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issues and settlements) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | $ 5,974 | $ 5,355 |
Sales, assets | (971) | (1,600) |
Settlements, assets | (6,278) | (6,218) |
Purchases, Sales, Issues and Settlements, Net, assets | (1,275) | (2,463) |
Purchases, Sales, Issues and Settlements, Net, liabilities | 153 | 197 |
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 | (188) | (2) |
Transfers out Level 3 at end of reporting period, net gains (losses) included in realized and unrealized gains and losses related to Level 3 for the period. | (189) | (36) |
Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (6) | (19) |
Sales, liabilities | 437 | 442 |
Settlements, liabilities | (278) | (226) |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Sales, liabilities | 437 | 442 |
Settlements, liabilities | (134) | 23 |
Purchases, Sales, Issues and Settlements, Net, liabilities | 303 | 465 |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (6) | (19) |
Sales, liabilities | 0 | 0 |
Settlements, liabilities | (141) | (229) |
Purchases, Sales, Issues and Settlements, Net, liabilities | (147) | (248) |
Long-term debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Settlements, liabilities | (3) | (20) |
Purchases, Sales, Issues and Settlements, Net, liabilities | (3) | (20) |
Bonds available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 5,457 | 4,406 |
Sales, assets | (311) | (530) |
Settlements, assets | (4,670) | (4,312) |
Purchases, Sales, Issues and Settlements, Net, assets | 476 | (436) |
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 | 164 | 279 |
Sales, assets | (8) | (37) |
Settlements, assets | (95) | (88) |
Purchases, Sales, Issues and Settlements, Net, assets | 61 | 154 |
Bonds available for sale | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 13 | 18 |
Sales, assets | 0 | (1) |
Settlements, assets | (6) | (7) |
Purchases, Sales, Issues and Settlements, Net, assets | 7 | 10 |
Bonds available for sale | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 29 | 221 |
Sales, assets | (25) | (60) |
Settlements, assets | (115) | (371) |
Purchases, Sales, Issues and Settlements, Net, assets | (111) | (210) |
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 | 2,635 | 2,215 |
Sales, assets | (81) | (194) |
Settlements, assets | (3,432) | (2,829) |
Purchases, Sales, Issues and Settlements, Net, assets | (878) | (808) |
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 | 156 | 273 |
Sales, assets | (98) | (28) |
Settlements, assets | (381) | (127) |
Purchases, Sales, Issues and Settlements, Net, assets | (323) | 118 |
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 | 2,460 | 1,400 |
Sales, assets | (99) | (210) |
Settlements, assets | (641) | (890) |
Purchases, Sales, Issues and Settlements, Net, assets | 1,720 | 300 |
Other bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 465 | 897 |
Sales, assets | (648) | (481) |
Settlements, assets | (1,479) | (1,790) |
Purchases, Sales, Issues and Settlements, Net, assets | (1,662) | (1,374) |
Other bond securities | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Settlements, assets | 0 | 1 |
Purchases, Sales, Issues and Settlements, Net, assets | 0 | 1 |
Other bond securities | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 343 | 655 |
Sales, assets | (104) | (22) |
Settlements, assets | (240) | (173) |
Purchases, Sales, Issues and Settlements, Net, assets | (1) | 460 |
Other bond securities | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 53 | 0 |
Sales, assets | (86) | (79) |
Settlements, assets | (5) | (98) |
Purchases, Sales, Issues and Settlements, Net, assets | (38) | (177) |
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 | 69 | 242 |
Sales, assets | (458) | (380) |
Settlements, assets | (1,234) | (1,520) |
Purchases, Sales, Issues and Settlements, Net, assets | (1,623) | (1,658) |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 0 |
Sales, assets | 0 | (2) |
Settlements, assets | 0 | (1) |
Purchases, Sales, Issues and Settlements, Net, assets | 0 | (3) |
Other equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 14 | |
Sales, assets | 0 | |
Settlements, assets | (28) | (7) |
Purchases, Sales, Issues and Settlements, Net, assets | (14) | (7) |
Mortgage and other loans receivable, net of allowance | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1 | 5 |
Sales, assets | (2) | 0 |
Settlements, assets | 1 | 0 |
Purchases, Sales, Issues and Settlements, Net, assets | 0 | 5 |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 37 | 47 |
Sales, assets | (10) | (587) |
Settlements, assets | (102) | (108) |
Purchases, Sales, Issues and Settlements, Net, assets | $ (75) | $ (648) |
FAIR VALUE MEASUREMENTS (Deta79
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Assets)) - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Corporate debt | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 498 | $ 642 |
Corporate debt | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.41% | 5.63% |
Corporate debt | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 6.38% | 12.45% |
Corporate debt | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.90% | 9.04% |
Residential mortgage-backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 17,412 | $ 17,280 |
Residential mortgage-backed securities | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.28% | 3.13% |
Constant prepayment rate | 3.95% | 0.99% |
Loss severity | 47.51% | 47.21% |
Constant default rate | 3.28% | 3.49% |
Residential mortgage-backed securities | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 5.87% | 6.14% |
Constant prepayment rate | 6.54% | 8.95% |
Loss severity | 80.98% | 79.50% |
Constant default rate | 8.64% | 9.04% |
Residential mortgage-backed securities | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.57% | 4.63% |
Constant prepayment rate | 5.25% | 4.97% |
Loss severity | 64.24% | 63.35% |
Constant default rate | 5.96% | 6.26% |
Certain CDO/ABS | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 4,368 | $ 3,338 |
Certain CDO/ABS | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 3.67% | 3.41% |
Certain CDO/ABS | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 5.85% | 4.98% |
Certain CDO/ABS | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.76% | 4.19% |
Commercial mortgage backed securities | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,511 | $ 2,388 |
Commercial mortgage backed securities | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 0.48% | 0.00% |
Commercial mortgage backed securities | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 10.21% | 17.65% |
Commercial mortgage backed securities | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 5.34% | 6.62% |
Obligations of states, municipalities and political subdivisions | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,248 | $ 1,217 |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.12% | 4.32% |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.91% | 5.10% |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Weighted-average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Yield | 4.52% | 4.71% |
FAIR VALUE MEASUREMENTS (Deta80
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Index Annuities | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 859 | $ 715 |
Index Annuities | Discounted cash flow | Minimum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Mortality rates | 101.00% | 50.00% |
Lapse rates | 1.00% | 0.75% |
Index Annuities | Discounted cash flow | Maximum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Mortality rates | 103.00% | 75.00% |
Lapse rates | 66.00% | 66.00% |
Index Life | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 381 | $ 332 |
Index Life | Discounted cash flow | Minimum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Base lapse rates | 2.00% | 2.00% |
Mortality rates | 0.00% | 0.00% |
Index Life | Discounted cash flow | Maximum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Base lapse rates | 19.00% | 19.00% |
Mortality rates | 40.00% | 40.00% |
Derivative Liabilities - Credit contracts | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 0 | |
GMWB and GMAB | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Change in equity volatilities assumption | $ 0 | |
Change in equity/interest rate correlation assumption | 0 | |
GMWB and GMAB | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 1,777 | $ 1,234 |
GMWB and GMAB | Discounted cash flow | Minimum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 13.00% | 15.00% |
Base lapse rates | 0.50% | 1.00% |
Dynamic lapse rates | 30.00% | 0.20% |
Mortality multiplier | 42.00% | 80.00% |
Utilization rates | 100.00% | 0.00% |
Equity/Interest-rate Correlation | 20.00% | 20.00% |
GMWB and GMAB | Discounted cash flow | Maximum | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Equity volatility | 50.00% | 50.00% |
Base lapse rates | 20.00% | 17.00% |
Dynamic lapse rates | 170.00% | 25.50% |
Mortality multiplier | 161.00% | 104.27% |
Utilization rates | 70.00% | |
Equity/Interest-rate Correlation | 40.00% | 40.00% |
FAIR VALUE MEASUREMENTS (Deta81
FAIR VALUE MEASUREMENTS (Details - Investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $ 6,741 | $ 8,577 |
Unfunded Commitments | 1,279 | 1,003 |
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 | 2,254 | 2,631 |
Unfunded Commitments | $ 1,248 | 970 |
Average original expected lives | 10 years | |
Private equity funds | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Average original expected lives, Increments | 2 years | |
Private equity funds | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Average original expected lives, Increments | 1 year | |
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 | 73.00% | |
Private equity funds | Expected remaining lives of less than 3 years | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
First threshold level of remaining lives | 0 years | |
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 | 10.00% | |
Private equity funds | Expected remaining lives of 4 to 6 years | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Second threshold level of remaining lives | 0 years | |
Private equity funds | Expected remaining lives of 4 to 6 years | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Second threshold level of remaining lives | 0 years | |
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 | 17.00% | |
Private equity funds | Expected remaining lives of 7 to 10 years | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Third threshold level of remaining lives | 0 years | |
Private equity funds | Expected remaining lives of 7 to 10 years | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Third threshold level of remaining lives | 0 years | |
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 | $ 1,424 | 1,774 |
Unfunded Commitments | 750 | 436 |
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 | 258 | 306 |
Unfunded Commitments | 208 | 213 |
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 | 137 | 107 |
Unfunded Commitments | 31 | 41 |
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 | 123 | 146 |
Unfunded Commitments | 44 | 41 |
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 | 312 | 298 |
Unfunded Commitments | 215 | 239 |
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 | 4,487 | 5,946 |
Unfunded Commitments | $ 31 | 33 |
Hedge fund investments redeemable monthly (as a percent) | 16.00% | |
Hedge fund investments redeemable quarterly (as a percent) | 37.00% | |
Hedge fund investments redeemable semi-annually (as a percent) | 11.00% | |
Hedge fund investments redeemable annually (as a percent) | 36.00% | |
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part | 72.00% | |
Hedge funds: | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investment redemption notice period (in days/years) | 180 days | |
Hedge funds: | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Investment redemption notice period (in days/years) | 1 day | |
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 | $ 1,453 | 1,194 |
Unfunded Commitments | 9 | 0 |
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 | 1,429 | 2,978 |
Unfunded Commitments | 0 | 25 |
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 | 992 | 555 |
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 | 416 | 699 |
Unfunded Commitments | 8 | 8 |
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 | 0 | 353 |
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 | 197 | 167 |
Unfunded Commitments | $ 14 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta82
FAIR VALUE MEASUREMENTS (Details - Gains or losses recorded related to the eligible instruments for which we elected the fair value option) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option credit risk gains (losses) on liabilities | $ 22 | $ 4 | $ 32 |
Fair Value Option | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 466 | 613 | 2,140 |
Fair Value Option | Long-term debt | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option credit risk gains (losses) on liabilities | (9) | (38) | (269) |
Fair Value Option | Other liabilities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option credit risk gains (losses) on liabilities | 0 | (3) | (13) |
Fair Value Option | Bond and equity securities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 447 | 616 | 2,099 |
Fair Value Option | Alternative investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | 28 | 36 | 313 |
Fair Value Option | Other, Including Short Term Investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair Value Options Changes in Fair Value Gain (loss) | $ 0 | $ 2 | $ 10 |
FAIR VALUE MEASUREMENTS (Deta83
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 ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage and other loans receivable, Fair Value | $ 11 | $ 11 |
Mortgage and other loans receivable, Outstanding Principal Amount | 33,537 | 29,873 |
Long-term debt, Fair Value | 3,428 | 3,670 |
Long-term debt, Outstanding Principal Amount | 30,912 | 29,249 |
Fair Value Option | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage and other loans receivable, Fair Value | 11 | 11 |
Mortgage and other loans receivable, Outstanding Principal Amount | 8 | 9 |
Mortgage and other loans receivable, Difference | 3 | 2 |
Long-term debt, Fair Value | 3,428 | 3,670 |
Long-term debt, Outstanding Principal Amount | 2,628 | 2,675 |
Long-term debt, Difference | $ 800 | $ 995 |
Disclosure level, past due mortgage or other loans receivable for which the fair value option was elected, number of days past due threshold | 0 days |
FAIR VALUE MEASUREMENTS (Deta84
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 ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | $ 492 | $ 809 | $ 342 |
Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 76 | 189 | 134 |
Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 397 | 540 | 201 |
Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Impairment Charges | 19 | 80 | $ 7 |
Fair value on a non-recurring basis | Level 1 | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
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 MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 1 | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 2 | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
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 MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 2 | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 0 | 0 | |
Fair value on a non-recurring basis | Level 3 | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 1,102 | 2,074 | |
Fair value on a non-recurring basis | Level 3 | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 364 | 1,117 | |
Fair value on a non-recurring basis | Level 3 | Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 736 | 828 | |
Fair value on a non-recurring basis | Level 3 | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 2 | 129 | |
Fair value on a non-recurring basis | Total Fair Value | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 1,102 | 2,074 | |
Fair value on a non-recurring basis | Total Fair Value | Other investments | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 364 | 1,117 | |
Fair value on a non-recurring basis | Total Fair Value | Investments in life settlements | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | 736 | 828 | |
Fair value on a non-recurring basis | Total Fair Value | Other assets | |||
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS | |||
Assets at Fair Value, Non-Recurring Basis | $ 2 | $ 129 |
FAIR VALUE MEASUREMENTS (Deta85
FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | ||||
Mortgage and other loans receivable | $ 33,240 | $ 29,565 | ||
Short-term investments | 12,302 | 10,132 | ||
Cash | 1,868 | 1,629 | $ 1,758 | $ 2,241 |
Liabilities: | ||||
Other liabilities | 26,296 | 26,164 | ||
Long-term Debt | 30,912 | 29,249 | ||
Total Fair Value | ||||
Assets: | ||||
Mortgage and other loans receivable | 33,736 | 30,345 | ||
Other invested assets | 3,008 | 3,443 | ||
Short-term investments | 8,961 | 7,541 | ||
Cash | 1,868 | 1,629 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 122,124 | 117,846 | ||
Other liabilities | 4,196 | 2,852 | ||
Long-term Debt | 26,450 | 26,214 | ||
Level 1 | ||||
Assets: | ||||
Mortgage and other loans receivable | 0 | 0 | ||
Other invested assets | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Cash | 1,868 | 1,629 | ||
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 | 161 | 198 | ||
Other invested assets | 955 | 563 | ||
Short-term investments | 8,961 | 7,541 | ||
Cash | 0 | 0 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 382 | 309 | ||
Other liabilities | 4,196 | 2,852 | ||
Long-term Debt | 23,117 | 21,686 | ||
Level 3 | ||||
Assets: | ||||
Mortgage and other loans receivable | 33,575 | 30,147 | ||
Other invested assets | 2,053 | 2,880 | ||
Short-term investments | 0 | 0 | ||
Cash | 0 | 0 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 121,742 | 117,537 | ||
Other liabilities | 0 | 0 | ||
Long-term Debt | 3,333 | 4,528 | ||
Carrying Value | ||||
Assets: | ||||
Mortgage and other loans receivable | 33,229 | 29,554 | ||
Other invested assets | 3,474 | 4,169 | ||
Short-term investments | 8,961 | 7,541 | ||
Cash | 1,868 | 1,629 | ||
Liabilities: | ||||
Policyholder contract deposits associated with investment-type contracts | 112,705 | 108,788 | ||
Other liabilities | 4,196 | 2,852 | ||
Long-term Debt | $ 27,484 | $ 25,579 |
INVESTMENTS (Details - Amortize
INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | $ 233,938 | $ 242,347 |
Available for sale securities, Gross Unrealized Gains | 12,817 | 14,087 |
Available for sale securities, Gross Unrealized Losses | (3,140) | (5,274) |
Available-for-sale Securities | 243,615 | 251,160 |
AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,265 | 1,482 |
Bonds available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 232,241 | 240,968 |
Available for sale securities, Gross Unrealized Gains | 12,421 | 12,527 |
Available for sale securities, Gross Unrealized Losses | (3,125) | (5,250) |
Available-for-sale Securities | 241,537 | 248,245 |
Other details of available for sale securities | ||
Available for sale securities not rated or rated below investment grade | 33,600 | 34,900 |
Bonds available for sale | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,265 | 1,482 |
Bonds available for sale | U.S. government and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 1,870 | 1,698 |
Available for sale securities, Gross Unrealized Gains | 148 | 155 |
Available for sale securities, Gross Unrealized Losses | (26) | (9) |
Available-for-sale Securities | 1,992 | 1,844 |
Bonds available for sale | U.S. government and government sponsored entities | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 0 | 0 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 24,025 | 26,003 |
Available for sale securities, Gross Unrealized Gains | 1,001 | 1,424 |
Available for sale securities, Gross Unrealized Losses | (254) | (104) |
Available-for-sale Securities | 24,772 | 27,323 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 0 | 19 |
Bonds available for sale | Non-U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 14,018 | 17,752 |
Available for sale securities, Gross Unrealized Gains | 773 | 805 |
Available for sale securities, Gross Unrealized Losses | (256) | (362) |
Available-for-sale Securities | 14,535 | 18,195 |
Bonds available for sale | Non-U.S. government | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 0 | 0 |
Bonds available for sale | Corporate debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 126,648 | 133,513 |
Available for sale securities, Gross Unrealized Gains | 7,271 | 6,462 |
Available for sale securities, Gross Unrealized Losses | (1,739) | (3,987) |
Available-for-sale Securities | 132,180 | 135,988 |
Bonds available for sale | Corporate debt | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | (31) | (87) |
Bonds available for sale | Mortgage-backed, asset-backed and collateralized | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 65,680 | 62,002 |
Available for sale securities, Gross Unrealized Gains | 3,228 | 3,681 |
Available for sale securities, Gross Unrealized Losses | (850) | (788) |
Available-for-sale Securities | 68,058 | 64,895 |
Bonds available for sale | Mortgage-backed, asset-backed and collateralized | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,296 | 1,550 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 35,311 | 33,878 |
Available for sale securities, Gross Unrealized Gains | 2,541 | 2,760 |
Available for sale securities, Gross Unrealized Losses | (478) | (411) |
Available-for-sale Securities | 37,374 | 36,227 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,212 | 1,326 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 14,054 | 13,139 |
Available for sale securities, Gross Unrealized Gains | 409 | 561 |
Available for sale securities, Gross Unrealized Losses | (192) | (129) |
Available-for-sale Securities | 14,271 | 13,571 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 45 | 185 |
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 16,315 | 14,985 |
Available for sale securities, Gross Unrealized Gains | 278 | 360 |
Available for sale securities, Gross Unrealized Losses | (180) | (248) |
Available-for-sale Securities | 16,413 | 15,097 |
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 39 | 39 |
Equity securities available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 1,697 | 1,379 |
Available for sale securities, Gross Unrealized Gains | 396 | 1,560 |
Available for sale securities, Gross Unrealized Losses | (15) | (24) |
Available-for-sale Securities | 2,078 | 2,915 |
Equity securities available for sale | Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 708 | 913 |
Available for sale securities, Gross Unrealized Gains | 369 | 1,504 |
Available for sale securities, Gross Unrealized Losses | (12) | (16) |
Available-for-sale Securities | 1,065 | 2,401 |
Equity securities available for sale | Preferred Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 748 | 19 |
Available for sale securities, Gross Unrealized Gains | 4 | 3 |
Available for sale securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 752 | 22 |
Equity securities available for sale | Mutual Funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 241 | 447 |
Available for sale securities, Gross Unrealized Gains | 23 | 53 |
Available for sale securities, Gross Unrealized Losses | (3) | (8) |
Available-for-sale Securities | $ 261 | $ 492 |
INVESTMENTS (Details - Summary
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) $ in Millions | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) |
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | $ 57,397 | $ 67,217 |
Gross Unrealized Losses, Less than 12 Months | 1,943 | 3,182 |
Fair Value, 12 Months or More | 13,285 | 13,595 |
Gross Unrealized Losses, 12 Months or More | 1,197 | 2,092 |
Fair Value, Total | 70,682 | 80,812 |
Gross Unrealized Losses, Total | 3,140 | 5,274 |
Bonds available for sale | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 57,208 | 66,926 |
Gross Unrealized Losses, Less than 12 Months | 1,928 | 3,158 |
Fair Value, 12 Months or More | 13,285 | 13,595 |
Gross Unrealized Losses, 12 Months or More | 1,197 | 2,092 |
Fair Value, Total | 70,493 | 80,521 |
Gross Unrealized Losses, Total | $ 3,125 | 5,250 |
Number of securities in an unrealized loss position | item | 11,225 | |
Number of individual securities in continuous unrealized loss position for longer than twelve months | item | 1,795 | |
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 | $ 720 | 483 |
Gross Unrealized Losses, Less than 12 Months | 26 | 9 |
Fair Value, 12 Months or More | 0 | 1 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 720 | 484 |
Gross Unrealized Losses, Total | 26 | 9 |
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 | 5,814 | 2,382 |
Gross Unrealized Losses, Less than 12 Months | 221 | 87 |
Fair Value, 12 Months or More | 231 | 268 |
Gross Unrealized Losses, 12 Months or More | 33 | 17 |
Fair Value, Total | 6,045 | 2,650 |
Gross Unrealized Losses, Total | 254 | 104 |
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 | 3,865 | 4,327 |
Gross Unrealized Losses, Less than 12 Months | 162 | 203 |
Fair Value, 12 Months or More | 489 | 832 |
Gross Unrealized Losses, 12 Months or More | 94 | 159 |
Fair Value, Total | 4,354 | 5,159 |
Gross Unrealized Losses, Total | 256 | 362 |
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 | 28,184 | 41,317 |
Gross Unrealized Losses, Less than 12 Months | 1,013 | 2,514 |
Fair Value, 12 Months or More | 6,080 | 5,428 |
Gross Unrealized Losses, 12 Months or More | 726 | 1,473 |
Fair Value, Total | 34,264 | 46,745 |
Gross Unrealized Losses, Total | 1,739 | 3,987 |
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 | 8,794 | 7,215 |
Gross Unrealized Losses, Less than 12 Months | 252 | 133 |
Fair Value, 12 Months or More | 4,045 | 4,318 |
Gross Unrealized Losses, 12 Months or More | 226 | 278 |
Fair Value, Total | 12,839 | 11,533 |
Gross Unrealized Losses, Total | 478 | 411 |
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 | 4,469 | 4,138 |
Gross Unrealized Losses, Less than 12 Months | 152 | 108 |
Fair Value, 12 Months or More | 479 | 573 |
Gross Unrealized Losses, 12 Months or More | 40 | 21 |
Fair Value, Total | 4,948 | 4,711 |
Gross Unrealized Losses, Total | 192 | 129 |
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 | 5,362 | 7,064 |
Gross Unrealized Losses, Less than 12 Months | 102 | 104 |
Fair Value, 12 Months or More | 1,961 | 2,175 |
Gross Unrealized Losses, 12 Months or More | 78 | 144 |
Fair Value, Total | 7,323 | 9,239 |
Gross Unrealized Losses, Total | 180 | 248 |
Equity securities available for sale | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 189 | 291 |
Gross Unrealized Losses, Less than 12 Months | 15 | 24 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 189 | 291 |
Gross Unrealized Losses, Total | $ 15 | 24 |
Number of securities in an unrealized loss position | item | 113 | |
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 | $ 125 | 91 |
Gross Unrealized Losses, Less than 12 Months | 12 | 16 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 125 | 91 |
Gross Unrealized Losses, Total | 12 | 16 |
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 | 0 |
Gross Unrealized Losses, Less than 12 Months | 0 | 0 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 0 | 0 |
Gross Unrealized Losses, Total | 0 | 0 |
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 | 64 | 200 |
Gross Unrealized Losses, Less than 12 Months | 3 | 8 |
Fair Value, 12 Months or More | 0 | 0 |
Gross Unrealized Losses, 12 Months or More | 0 | 0 |
Fair Value, Total | 64 | 200 |
Gross Unrealized Losses, Total | $ 3 | $ 8 |
INVESTMENTS (Details - Amorti88
INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | $ 233,938 | $ 242,347 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 241,537 | 248,245 |
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 | 604 | 1,122 |
Due after one year through five years, Amortized Cost | 6,002 | 9,847 |
Due after five years through ten years, Amortized Cost | 16,045 | 22,296 |
Due after ten years, Amortized Cost | 25,007 | 26,235 |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 25,960 | 26,271 |
Available for sale securities, Amortized Cost, Total | 73,618 | 85,771 |
Due in one year or less, Fair Value | 581 | 1,103 |
Due after one year through five years, Fair Value | 5,841 | 9,494 |
Due after five years through ten years, Fair Value | 15,332 | 20,686 |
Due after ten years, Fair Value | 23,629 | 23,755 |
Mortgage-backed, asset-backed and collateralized, Fair Value | 25,110 | 25,483 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 70,493 | 80,521 |
Bonds available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | 7,796 | 9,176 |
Due after one year through five years, Amortized Cost | 49,200 | 47,230 |
Due after five years through ten years, Amortized Cost | 43,308 | 54,120 |
Due after ten years, Amortized Cost | 66,257 | 68,440 |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 65,680 | 62,002 |
Available for sale securities, Amortized Cost, Total | 232,241 | 240,968 |
Due in one year or less, Fair Value | 7,994 | 9,277 |
Due after one year through five years, Fair Value | 51,958 | 49,196 |
Due after five years through ten years, Fair Value | 44,226 | 54,459 |
Due after ten years, Fair Value | 69,301 | 70,418 |
Mortgage-backed, asset-backed and collateralized, Fair Value | 68,058 | 64,895 |
Fixed Maturity Securities Available for Sale, Fair Value, Total | $ 241,537 | $ 248,245 |
INVESTMENTS (Details - Realized
INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | $ 1,873 | $ 1,577 | $ 838 |
Gross Realized Losses | 815 | 451 | 142 |
Aggregate fair value of available for sale securities sold | 30,200 | 28,700 | 25,300 |
Net realized capital gains (losses) | 1,100 | 1,100 | 700 |
Fixed maturity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | 801 | 517 | 703 |
Gross Realized Losses | 800 | 423 | 118 |
Equity securities available for sale | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | 1,072 | 1,060 | 135 |
Gross Realized Losses | $ 15 | $ 28 | $ 24 |
INVESTMENTS (Details - Value of
INVESTMENTS (Details - Value of other securities measured at fair value based on election of the fair value option) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 14,480 | $ 17,703 |
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 | $ 421 | $ 712 |
Fixed maturity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 13,998 | $ 16,782 |
Other Securities, Percent of Total | 97.00% | 95.00% |
Fixed maturity securities | U.S. government and government sponsored entities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 2,939 | $ 3,369 |
Other Securities, Percent of Total | 20.00% | 19.00% |
Fixed maturity securities | Obligations of states, municipalities and political subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 0 | $ 75 |
Other Securities, Percent of Total | 0.00% | 0.00% |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 51 | $ 50 |
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 | $ 1,772 | $ 2,035 |
Other Securities, Percent of Total | 12.00% | 12.00% |
Fixed maturity securities | Mortgage-backed, asset-backed and collateralized | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 9,236 | $ 11,253 |
Other Securities, Percent of Total | 65.00% | 64.00% |
Fixed maturity securities | Residential mortgage-backed securities (RMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 2,025 | $ 2,230 |
Other Securities, Percent of Total | 14.00% | 13.00% |
Fixed maturity securities | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 603 | $ 750 |
Other Securities, Percent of Total | 4.00% | 4.00% |
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 | $ 6,608 | $ 8,273 |
Other Securities, Percent of Total | 47.00% | 47.00% |
Fixed maturity securities | Other | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 0 | $ 0 |
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 | $ 482 | $ 921 |
Other Securities, Percent of Total | 3.00% | 5.00% |
INVESTMENTS (Details - Carrying
INVESTMENTS (Details - Carrying values of other invested assets) - USD ($) $ in Millions | 12 Months Ended | 72 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2024 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment [Line Items] | |||||
Other invested assets | $ 24,538 | $ 29,794 | |||
Other invested assets, gross unrealized losses | 32 | 33 | |||
Hedge Funds | |||||
Investment [Line Items] | |||||
Hedge Fund Fair Value Redemption, Additional Percentage | 15.00% | 72.00% | 7.00% | ||
Alternative investments | |||||
Investment [Line Items] | |||||
Other invested assets | 13,379 | 18,150 | |||
Alternative investments | Hedge Funds | |||||
Investment [Line Items] | |||||
Other invested assets | 7,200 | 10,900 | |||
Alternative investments | Private equity funds | |||||
Investment [Line Items] | |||||
Other invested assets | 5,500 | 6,500 | |||
Alternative investments | Affordable Housing Partnerships | |||||
Investment [Line Items] | |||||
Other invested assets | 625 | 701 | |||
Mutual Funds | |||||
Investment [Line Items] | |||||
Other invested assets | 0 | ||||
Investment real estate | |||||
Investment [Line Items] | |||||
Other invested assets | 6,900 | 6,579 | |||
Net of accumulated depreciation on investment in real estate | 451 | 668 | |||
Aircraft asset investments | |||||
Investment [Line Items] | |||||
Other invested assets | 321 | 477 | |||
Investment In Aer Cap [Member] | |||||
Investment [Line Items] | |||||
Other invested assets | 0 | 0 | |||
Investments in life settlements | |||||
Investment [Line Items] | |||||
Other invested assets | 2,516 | 3,606 | |||
All other investments | |||||
Investment [Line Items] | |||||
Other invested assets | $ 1,422 | $ 982 |
INVESTMENTS (Details - Equity m
INVESTMENTS (Details - Equity method investments) | 12 Months Ended |
Dec. 31, 2016 | |
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 - Summariz
INVESTMENTS (Details - Summarized financial information of equity method investees) - All other equity method investments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating results: | |||
Total revenues | $ 9,512 | $ 22,055 | $ 29,579 |
Total expenses | (7,361) | (3,898) | (7,828) |
Net income | 2,151 | 18,157 | $ 21,751 |
Balance sheet: | |||
Total assets | 158,306 | 201,007 | |
Total liabilities | (37,336) | (33,424) | |
Equity method investments, Carrying Value | $ 10,756 | $ 14,259 |
INVESTMENTS (Details - Life set
INVESTMENTS (Details - Life settlements) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
INVESTMENTS | |||
Income recognized on life settlement contracts | $ 453 | $ 332 | $ 407 |
Number of Contracts | |||
Number of Contracts, 0 - 1 year | item | 1 | ||
Number of Contracts, 1 - 2 years | item | 5 | ||
Number of Contracts, 2 - 3 years | item | 16 | ||
Number of Contracts, 3 - 4 years | item | 43 | ||
Number of Contracts, 4 - 5 years | item | 148 | ||
Number of Contracts, Thereafter | item | 3,235 | ||
Total Number of Contracts | item | 3,448 | ||
Carrying Value | |||
Carrying Value, 1 to 2 years | $ 5 | ||
Carrying Value, 2 to 3 years | 6 | ||
Carrying Value, 3 to 4 years | 43 | ||
Carrying Value, 4 to 5 years | 171 | ||
Carrying Value, Thereafter | 2,291 | ||
Total of Carrying Value | 2,516 | ||
Face Value (Death Benefits) | |||
Face Value (Death Benefits), 1 - 2 years | 10 | ||
Face Value (Death Benefits), 2 - 3 years | 14 | ||
Face Value (Death Benefits), 3 - 4 years | 93 | ||
Face Value (Death Benefits), 4 - 5 years | 404 | ||
Face Value (Death Benefits), Thereafter | 9,266 | ||
Total of Face Value (Death Benefits) | 9,787 | ||
Anticipated life insurance premiums | |||
2,016 | 390 | ||
2,017 | 402 | ||
2,018 | 414 | ||
2,019 | 422 | ||
2,020 | $ 429 |
INVESTMENTS (Details - Componen
INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment [Line Items] | |||
Total investment income | $ 14,518 | $ 14,581 | $ 16,596 |
Investment expenses | 453 | 528 | 517 |
Net investment income | 14,065 | 14,053 | 16,079 |
Fixed maturity securities, including short-term investments | |||
Investment [Line Items] | |||
Total investment income | 11,645 | 11,332 | 12,322 |
Equity securities | |||
Investment [Line Items] | |||
Total investment income | (5) | 99 | 221 |
Interest on mortgage and other loans | |||
Investment [Line Items] | |||
Total investment income | 1,526 | 1,417 | 1,272 |
Alternative investments | |||
Investment [Line Items] | |||
Total investment income | 693 | 1,120 | 2,070 |
Real estate | |||
Investment [Line Items] | |||
Total investment income | 150 | 181 | 110 |
Other investments | |||
Investment [Line Items] | |||
Total investment income | $ 509 | $ 432 | $ 601 |
INVESTMENTS (Details - Compon96
INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other-than-temporary impairments: | |||
Severity | $ (15) | $ (13) | $ (3) |
Change in intent | (46) | (233) | (40) |
Foreign currency declines | (18) | (57) | (19) |
Issuer-specific credit events | (433) | (348) | (169) |
Adverse projected cash flows | (47) | (20) | (16) |
Provision for loan losses | 10 | (58) | (1) |
Foreign exchange transactions | (1,226) | 416 | 598 |
Derivative and hedge accounting | (944) | 341 | (177) |
Impairments on investments in life settlements | (397) | (540) | (201) |
Other | 114 | 162 | 71 |
Total net realized capital gains (losses) | (1,944) | 776 | 739 |
Net realized capital gains (losses) | (1,944) | 776 | 739 |
Prudential Financial | |||
Other-than-temporary impairments: | |||
Total net realized capital gains (losses) | 107 | 428 | |
Net realized capital gains (losses) | 107 | 428 | |
SpringLeaf Holdings | |||
Other-than-temporary impairments: | |||
Total net realized capital gains (losses) | 357 | ||
Net realized capital gains (losses) | 357 | ||
AerCap | |||
Other-than-temporary impairments: | |||
Total net realized capital gains (losses) | (463) | ||
Net realized capital gains (losses) | (463) | ||
Life Settlement Contracts [Member] | |||
Other-than-temporary impairments: | |||
Total net realized capital gains (losses) | (253) | ||
Net realized capital gains (losses) | (253) | ||
Fixed maturity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Sales of securities | 1 | 94 | 585 |
Equity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Sales of securities | $ 1,057 | $ 1,032 | $ 111 |
INVESTMENTS (Details - Increase
INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | $ 605 | $ (11,007) |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | 2,019 | (9,275) |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | (1,155) | (929) |
Other investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | $ (259) | $ (803) |
INVESTMENTS (Details - Rollforw
INVESTMENTS (Details - Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fixed maturity securities | |||
Other Than Temporary Impairment Credit Losses Recognized in Earnings | |||
Balance, beginning of year | $ 1,747 | $ 2,659 | $ 3,872 |
Increases due to: | |||
Credit impairments on new securities subject to impairment losses | 204 | 111 | 49 |
Additional credit impairments on previously impaired securities | 212 | 109 | 85 |
Reductions due to: | |||
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell | (296) | (399) | (613) |
Credit impaired securities for which there is a current intent or anticipated requirement to sell | 0 | 2 | 0 |
Accretion on securities previously impaired due to credit | (767) | (735) | (725) |
Divested Businesses | (2) | ||
Other | 0 | 0 | (9) |
Balance, end of year | $ 1,098 | $ 1,747 | $ 2,659 |
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 - Purchase
INVESTMENTS (Details - Purchased Credit Impaired (PCI) Securities) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 232,241 | $ 240,968 |
Fair value | 243,615 | 251,160 |
Purchased Credit Impaired (PCI) Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Contractually required payments (principal and interest) | 35,885 | |
Cash flows expected to be collected | 29,314 | |
Recorded investment in acquired securities | 19,689 | |
Outstanding principal balance | 16,728 | 16,871 |
Amortized cost | 11,987 | 12,303 |
Fair value | 12,922 | 13,164 |
Available for sale securities | Purchased Credit Impaired (PCI) Securities | ||
Changes in activity for the accretable yield on PCI securities: | ||
Balance, beginning of period | 6,846 | 6,865 |
Newly purchased PCI securities | 707 | 696 |
Disposals | 0 | (13) |
Accretion | (842) | (879) |
Effect of changes in interest rate indices | 39 | (251) |
Net reclassification from non-accretable difference, including effects of prepayments | 748 | 428 |
Balance, end of period | $ 7,498 | $ 6,846 |
INVESTMENTS (Details - Pledged
INVESTMENTS (Details - Pledged Investments) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Investment [Line Items] | ||
Fair value of securities collateral pledged | $ 1,434 | $ 1,742 |
Fair value of amount sold or repledged | 11 | 0 |
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements | 4,900 | 4,900 |
Short-term investments held in escrow | 439 | |
Bonds available for sale and Short-term investments held in escrow | 523 | |
FHLBs | ||
Investment [Line Items] | ||
Fair value of fixed maturities securities available for sale | 3,400 | 1,200 |
Amount owned by subsidiaries | 114 | 47 |
Residential loans pledged as collateral | 17 | |
Secured financing | ||
Investment [Line Items] | ||
Fair value of fixed maturities securities available for sale | 2,389 | 1,145 |
Fair value of other bond securities | 1,799 | 1,740 |
Amounts Borrowed Under Repurchase and Securities Lending Agreements | 4,200 | 2,900 |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,799 | 1,790 |
Securities Lending Agreements, Fair Value of Collateral | 2,389 | 1,095 |
Secured financing | Up to 30 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 163 | 83 |
Securities Lending Agreements, Fair Value of Collateral | 812 | |
Secured financing | 31 to 90 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 860 | 332 |
Securities Lending Agreements, Fair Value of Collateral | 1,577 | 971 |
Secured financing | 91 to 364 Days | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 776 | 1,375 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 124 |
Secured financing | Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 21 | |
Secured financing | Bonds available for sale | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 50 | |
Securities Lending Agreements, Fair Value of Collateral | 50 | 57 |
Secured financing | Bonds available for sale | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 2,257 | 914 |
Secured financing | Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 124 | |
Secured financing | Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 61 | |
Secured financing | Bonds available for sale | Up to 30 Days | Obligations of states, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 21 | |
Secured financing | Bonds available for sale | Up to 30 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 50 | |
Secured financing | Bonds available for sale | Up to 30 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 791 | |
Secured financing | Bonds available for sale | 31 to 90 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 50 | 57 |
Secured financing | Bonds available for sale | 31 to 90 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 1,466 | 914 |
Secured financing | Bonds available for sale | 31 to 90 Days | Commercial mortgage-backed securities (CMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 61 | |
Secured financing | Bonds available for sale | 91 to 364 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | 91 to 364 Days | Residential mortgage-backed securities (RMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 124 | |
Secured financing | Bonds available for sale | 91 to 364 Days | Commercial mortgage-backed securities (CMBS) | ||
Investment [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 51 | 49 |
Secured financing | Other bond securities | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 1,748 | 1,691 |
Secured financing | Other bond securities | Up to 30 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | Other bond securities | Up to 30 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 163 | 33 |
Secured financing | Other bond securities | 31 to 90 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | Other bond securities | 31 to 90 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 860 | 332 |
Secured financing | Other bond securities | 91 to 364 Days | Non-U.S. government | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 51 | 49 |
Secured financing | Other bond securities | 91 to 364 Days | Corporate debt | ||
Investment [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 725 | 1,326 |
GIAs | ||
Investment [Line Items] | ||
Fair value of other bond securities | $ 2,200 | $ 2,400 |
LENDING ACTIVITIES (Details - C
LENDING ACTIVITIES (Details - Composition of Mortgages and other loans receivable) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 33,537 | $ 29,873 | ||
Allowance for losses | (297) | (308) | $ (271) | $ (312) |
Mortgage and other loans receivable, net | 33,240 | 29,565 | ||
Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 25,042 | 22,067 | ||
Allowance for losses | $ (194) | $ (171) | $ (159) | $ (201) |
Commercial mortgages | California | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of mortgage loans in geographic area | 24.00% | 22.00% | ||
Commercial mortgages | New York | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of mortgage loans in geographic area | 12.00% | 12.00% | ||
Residential Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 3,828 | $ 2,758 | ||
Life insurance policy loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 2,367 | 2,597 | ||
Commercial loans, other loans and notes receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 2,300 | $ 2,451 |
LENDING ACTIVITIES (Details 102
LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgage loans) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Commercial Mortgage Recorded Investment [Line Items] | ||||
Mortgage and other loans receivable, net | $ 33,240 | $ 29,565 | ||
Allowance for credit losses | 297 | 308 | $ 271 | $ 312 |
Total mortgage and other loans receivable | 33,537 | 29,873 | ||
Apartments | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 6,005 | 3,916 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 3 | ||
Mortgage and other loans receivable, net | 6,005 | 3,919 | ||
Allowance for credit losses, Specific | 0 | 0 | ||
Allowance for credit losses, General | 35 | 35 | ||
Allowance for credit losses | 35 | 35 | ||
Offices | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 7,830 | 7,484 | ||
Restructured | 134 | 156 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 205 | ||
Mortgage and other loans receivable, net | 7,964 | 7,845 | ||
Allowance for credit losses, Specific | 3 | 16 | ||
Allowance for credit losses, General | 72 | 47 | ||
Allowance for credit losses | 75 | 63 | ||
Retail | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 5,179 | 4,809 | ||
Restructured | 18 | 25 | ||
90 days or less delinquent | 0 | 4 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 5,197 | 4,838 | ||
Allowance for credit losses, Specific | 1 | 1 | ||
Allowance for credit losses, General | 41 | 29 | ||
Allowance for credit losses | 42 | 30 | ||
Industrial | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 1,898 | 1,902 | ||
Restructured | 0 | 6 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 6 | ||
Mortgage and other loans receivable, net | 1,898 | 1,914 | ||
Allowance for credit losses, Specific | 6 | 6 | ||
Allowance for credit losses, General | 7 | 8 | ||
Allowance for credit losses | 13 | 14 | ||
Hotel | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 2,373 | 2,082 | ||
Restructured | 16 | 16 | ||
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 | 2,389 | 2,098 | ||
Allowance for credit losses, Specific | 1 | 1 | ||
Allowance for credit losses, General | 13 | 15 | ||
Allowance for credit losses | 14 | 16 | ||
Others | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 1,589 | 1,435 | ||
Restructured | 0 | 6 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 12 | ||
Mortgage and other loans receivable, net | 1,589 | 1,453 | ||
Allowance for credit losses, Specific | 0 | 0 | ||
Allowance for credit losses, General | 15 | 13 | ||
Allowance for credit losses | $ 15 | $ 13 | ||
Commercial mortgages | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Number of loans in good standing | loan | 784 | 830 | ||
Number of loans restructured | loan | 4 | 9 | ||
Number of loans 90 days or less delinquent | loan | 0 | 1 | ||
Number of loans greater than 90 days delinquent or in process of foreclosure | loan | 0 | 9 | ||
Number of Loans | loan | 788 | 849 | ||
In good standing | $ 24,874 | $ 21,628 | ||
Restructured | 168 | 209 | ||
90 days or less delinquent | 0 | 4 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 226 | ||
Mortgage and other loans receivable, net | 25,042 | 22,067 | ||
Allowance for credit losses, Specific | 11 | 24 | ||
Allowance for credit losses, General | 183 | 147 | ||
Allowance for credit losses | $ 194 | $ 171 | ||
Percentage of loans that are current as to payments of principal and interest | 99.00% | 98.00% | ||
Percentage restructured | 1.00% | 1.00% | ||
Percentage 90 days or less delinquent | 0.00% | |||
Percentage greater than 90 days delinquent or in foreclosure | 0.00% | 1.00% | ||
Percentage Total | 100.00% | 100.00% | ||
Percentage of loans with valuation allowance, Genaral | 1.00% | 1.00% | ||
Percentage of loans with valuation allowance, Specific | 0.00% | 0.00% | ||
Percentage of loans with allowance for losses | 1.00% | 1.00% | ||
Percentage of current commercial mortgages held | 100.00% | |||
Total mortgage and other loans receivable | $ 25,042 | $ 22,067 | ||
Commercial mortgages | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 21,661 | 18,660 | ||
Commercial mortgages | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 2,835 | 2,710 | ||
Commercial mortgages | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 546 | 697 | ||
Commercial mortgages | Less than 65% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 15,924 | 12,137 | ||
Commercial mortgages | Less than 65% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 13,998 | 10,283 | ||
Commercial mortgages | Less than 65% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 1,694 | 1,704 | ||
Commercial mortgages | Less than 65% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 232 | 150 | ||
Commercial mortgages | 65% to 75% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 6,583 | 7,017 | ||
Commercial mortgages | 65% to 75% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 5,946 | 6,361 | ||
Commercial mortgages | 65% to 75% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 575 | 611 | ||
Commercial mortgages | 65% to 75% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 62 | 45 | ||
Commercial mortgages | 76% to 80% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 1,467 | 1,620 | ||
Commercial mortgages | 76% to 80% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 1,246 | 1,370 | ||
Commercial mortgages | 76% to 80% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 174 | 169 | ||
Commercial mortgages | 76% to 80% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 47 | 81 | ||
Commercial mortgages | Greater than 80% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 1,068 | 1,293 | ||
Commercial mortgages | Greater than 80% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 471 | 646 | ||
Commercial mortgages | Greater than 80% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 392 | 226 | ||
Commercial mortgages | Greater than 80% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | $ 205 | $ 421 |
LENDING ACTIVITIES (Details - R
LENDING ACTIVITIES (Details - Rollforward of the changes in the allowance for losses on Mortgage and other loans receivable) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | $ 308 | $ 271 | $ 312 |
Loans charged off | (15) | (29) | (68) |
Recoveries of loans previously charged off | 11 | 5 | 34 |
Net charge-offs | (4) | (24) | (34) |
Provision for loan losses | (7) | 58 | (8) |
Other | 0 | 3 | 1 |
Activity of discontinued operations | 0 | 0 | 0 |
Allowance, end of period | 297 | 308 | 271 |
Loans modified in a troubled debt restructuring | 0 | 36 | |
Commercial mortgages | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | 171 | 159 | 201 |
Loans charged off | (13) | (23) | (29) |
Recoveries of loans previously charged off | 11 | 4 | 18 |
Net charge-offs | (2) | (19) | (11) |
Provision for loan losses | 25 | 31 | (31) |
Other | 0 | 0 | 0 |
Activity of discontinued operations | 0 | 0 | 0 |
Allowance, end of period | 194 | 171 | 159 |
Allowance related to individually assessed credit losses | 11 | 24 | 55 |
Commercial mortgage loans | 280 | 507 | 192 |
Other Loans | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | 137 | 112 | 111 |
Loans charged off | (2) | (6) | (39) |
Recoveries of loans previously charged off | 0 | 1 | 16 |
Net charge-offs | (2) | (5) | (23) |
Provision for loan losses | (32) | 27 | 23 |
Other | 0 | 3 | 1 |
Activity of discontinued operations | 0 | 0 | 0 |
Allowance, end of period | $ 103 | $ 137 | $ 112 |
REINSURANCE (Details - Suppleme
REINSURANCE (Details - Supplemental information for loss and benefit reserves, gross and net of ceded reinsurance) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Effects of Reinsurance [Line Items] | ||||
Allowance for doubtful accounts on reinsurance assets | $ 207 | $ 272 | $ 258 | |
Supplemental information for loss and benefit reserves | ||||
Liability for unpaid claims and claims adjustment expense, As Reported | (77,077) | (74,942) | (77,260) | $ (81,547) |
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance | (61,545) | (60,603) | $ (61,612) | $ (64,316) |
Future policy benefits for life and accident and health insurance contracts, as reported | (42,204) | (43,585) | ||
Future policy benefits for life and accident and health insurance contracts, Net of Reinsurance | (41,140) | (42,506) | ||
Reserve for unearned premiums, As Reported | (19,634) | (21,318) | ||
Reserve for unearned premiums, Net of Reinsurance | (16,280) | (18,380) | ||
Reinsurance assets | 19,950 | 18,356 | ||
NICO | ||||
Supplemental information for loss and benefit reserves | ||||
Net of reinsurance amount reflecting cession | $ 0 | $ 1,800 |
REINSURANCE (Details - Short-Du
REINSURANCE (Details - Short-Duration Reinsurance) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premiums Written | ||||
Direct | $ 38,579 | $ 42,931 | $ 43,425 | |
Assumed | 2,947 | 2,979 | 3,419 | |
Ceded | (8,350) | (8,360) | (8,979) | |
Net Amount | 33,176 | 37,550 | 37,865 | |
Premiums earned: | ||||
Net | 34,393 | 36,655 | 37,254 | |
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | $ 17,231 | |||
Short-duration insurance | ||||
Premiums Written | ||||
Direct | 33,970 | 37,698 | 39,375 | |
Assumed | 2,824 | 2,972 | 3,399 | |
Ceded | (7,561) | (7,604) | (8,318) | |
Net Amount | 29,233 | 33,066 | 34,456 | |
Premiums earned: | ||||
Direct | 34,869 | 37,105 | 38,707 | |
Assumed | 2,962 | 2,659 | 3,258 | |
Ceded | (7,284) | (7,593) | (8,140) | |
Net | 30,547 | 32,171 | 33,825 | |
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | $ 2,100 | $ 4,100 | $ 2,600 |
REINSURANCE (Details - Long-Dur
REINSURANCE (Details - Long-Duration Reinsurance) $ in Millions | Jul. 01, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Feb. 07, 2014USD ($)item | Dec. 31, 2013USD ($) |
Premiums earned: | ||||||
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | $ 17,231 | |||||
Letters of credit | ||||||
Letter of credit outstanding | $ 140 | |||||
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 | item | 2 | |||||
Long-duration insurance in force | ||||||
Premiums earned: | ||||||
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | 1,000 | $ 1,000 | $ 731 | |||
Life insurance ratios | ||||||
Long-duration insurance in force ceded | $ 174,363 | $ 177,025 | $ 180,178 | |||
Assumed insurance as a percentage of gross long-duration insurance in force | 0.03% | 0.04% | 0.04% | |||
Assumed insurance as a percent of gross premiums | 3.00% | 0.10% | 0.50% | |||
Life insurance companies | ||||||
Premiums earned: | ||||||
Direct | $ 4,732 | $ 5,240 | $ 4,070 | |||
Ceded | (789) | (756) | (661) | |||
Net | 3,943 | $ 4,484 | $ 3,409 | |||
Letters of credit | ||||||
Ceded Statutory Reserves | $ 5,000 | $ 14,000 |
REINSURANCE (Details - Reinsura
REINSURANCE (Details - Reinsurance Security) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Reinsurance Security | |||
Reinsurance assets | $ 19,950 | $ 18,356 | |
Secured | Reinsurer Concentration Risk [Member] | |||
Reinsurance Security | |||
Reinsurance assets | 8,200 | 6,500 | $ 6,200 |
Unsecured | Reinsurer Concentration Risk [Member] | |||
Reinsurance Security | |||
Reinsurance assets | $ 4,400 | $ 3,700 | $ 3,300 |
DEFERRED POLICY ACQUISITION 108
DEFERRED POLICY ACQUISITION COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Rollforward of deferred policy acquisition costs | |||
Balance, beginning of year | $ 11,115 | $ 9,828 | $ 9,436 |
Dispositions | (110) | ||
Acquisition costs deferred | 5,216 | 5,825 | 5,919 |
Amortization expense | (4,521) | (5,236) | (5,330) |
Change in net unrealized gains (losses) on securities | (259) | 848 | (360) |
Increase (decrease) due to foreign exchange and other | 72 | (150) | 163 |
Reclassified to Assets held for sale | (471) | ||
Balance, end of year | 11,042 | 11,115 | 9,828 |
Value of business acquired | |||
Amortization of VOBA | 40 | 64 | 17 |
Unamortized balance of VOBA | $ 393 | 453 | 510 |
Percentage of unamortized balance of VOBA expected to be amortized in the next five years | |||
Year one (as a percent) | 8.60% | ||
Year two (as a percent) | 7.90% | ||
Year three (as a percent) | 7.20% | ||
Year four (as a percent) | 6.80% | ||
Year five (as a percent) | 6.20% | ||
Years after five year (as a percent) | 63.30% | ||
Reportable Segments | Life insurance companies | |||
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 | $ (842) | $ (583) | $ (1,400) |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Bonds available for sale | $ 241,537 | $ 248,245 |
Other bond securities | 13,998 | 16,782 |
Mortgage and other loans receivable | 33,240 | 29,565 |
Other invested assets | 24,538 | 29,794 |
Liabilities: | ||
Long-term Debt | 30,912 | 29,249 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 24,538 | 29,794 |
Held for sale [Member] | ||
Assets: | ||
Mortgage and other loans receivable | 137 | |
Other invested assets | 2 | |
Liabilities: | ||
Long-term Debt | 0 | |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 2 | |
Real Estate and Investment Funds | ||
Liabilities: | ||
Off-balance sheet exposure | 106 | 131 |
Structured Investment Vehicles | Minimum | ||
Assets: | ||
Total assets | 0 | 0 |
Consolidated VIE | ||
Assets: | ||
Bonds available for sale | 10,233 | 10,324 |
Other bond securities | 5,129 | 6,167 |
Mortgage and other loans receivable | 1,547 | 2,093 |
Other invested assets | 4,222 | 3,598 |
Other assets | 1,995 | 1,924 |
Total assets | 23,126 | 24,106 |
Liabilities: | ||
Long-term Debt | 2,973 | 2,597 |
Other liabilities | 677 | 556 |
Total liabilities | 3,650 | 3,153 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 4,222 | 3,598 |
Consolidated VIE | Real Estate and Investment Funds | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 0 | 0 |
Mortgage and other loans receivable | 1 | 1 |
Other invested assets | 1,052 | 489 |
Other assets | 365 | 29 |
Total assets | 1,418 | 519 |
Liabilities: | ||
Long-term Debt | 444 | 0 |
Other liabilities | 224 | 34 |
Total liabilities | 668 | 34 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 1,052 | 489 |
Consolidated VIE | Securitization Vehicles | ||
Assets: | ||
Bonds available for sale | 10,233 | 10,309 |
Other bond securities | 4,858 | 5,756 |
Mortgage and other loans receivable | 1,442 | 1,960 |
Other invested assets | 321 | 477 |
Other assets | 1,104 | 1,349 |
Total assets | 17,958 | 19,851 |
Liabilities: | ||
Long-term Debt | 771 | 1,025 |
Other liabilities | 203 | 236 |
Total liabilities | 974 | 1,261 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 321 | 477 |
Total assets of consolidated securitization vehicles owed to Parent or its subsidiaries | 17,300 | |
Consolidated VIE | Structured Investment Vehicles | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 266 | 387 |
Mortgage and other loans receivable | 0 | 0 |
Other invested assets | 0 | 0 |
Other assets | 50 | 94 |
Total assets | 316 | 481 |
Liabilities: | ||
Long-term Debt | 56 | 53 |
Other liabilities | 1 | 1 |
Total liabilities | 57 | 54 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 0 | 0 |
Consolidated VIE | Affordable Housing Partnerships | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 0 | 0 |
Mortgage and other loans receivable | 0 | 0 |
Other invested assets | 2,821 | 2,608 |
Other assets | 384 | 293 |
Total assets | 3,205 | 2,901 |
Liabilities: | ||
Long-term Debt | 1,696 | 1,513 |
Other liabilities | 211 | 214 |
Total liabilities | 1,907 | 1,727 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 2,821 | 2,608 |
Consolidated VIE | Other | ||
Assets: | ||
Bonds available for sale | 0 | 15 |
Other bond securities | 5 | 24 |
Mortgage and other loans receivable | 104 | 132 |
Other invested assets | 28 | 24 |
Other assets | 92 | 159 |
Total assets | 229 | 354 |
Liabilities: | ||
Long-term Debt | 6 | 6 |
Other liabilities | 38 | 71 |
Total liabilities | 44 | 77 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Other invested assets | 28 | 24 |
Unconsolidated VIE | ||
Assets: | ||
Other invested assets | 11,700 | 3,800 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 416,665 | 28,316 |
Maximum Exposure to Loss, On-Balance Sheet | 12,114 | 4,061 |
Maximum Exposure to Loss, Off-Balance Sheet | 3,160 | 1,398 |
Total maximum exposure to loss | 15,274 | 5,459 |
Other invested assets | 11,700 | 3,800 |
Unconsolidated VIE | Real Estate and Investment Funds | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 409,087 | 21,951 |
Maximum Exposure to Loss, On-Balance Sheet | 11,015 | 3,072 |
Maximum Exposure to Loss, Off-Balance Sheet | 2,115 | 398 |
Total maximum exposure to loss | 13,130 | 3,470 |
Unconsolidated VIE | Affordable Housing Partnerships | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 4,709 | 5,255 |
Maximum Exposure to Loss, On-Balance Sheet | 785 | 774 |
Maximum Exposure to Loss, Off-Balance Sheet | 0 | 0 |
Total maximum exposure to loss | 785 | 774 |
Unconsolidated VIE | Other | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 2,869 | 1,110 |
Maximum Exposure to Loss, On-Balance Sheet | 314 | 215 |
Maximum Exposure to Loss, Off-Balance Sheet | 1,045 | 1,000 |
Total maximum exposure to loss | 1,359 | $ 1,215 |
Unconsolidated VIE | Maiden Lane II and III interests | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 0 | |
Maximum Exposure to Loss, On-Balance Sheet | 0 | |
Maximum Exposure to Loss, Off-Balance Sheet | 0 | |
Total maximum exposure to loss | $ 0 |
DERIVATIVES AND HEDGE ACCOUN110
DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of our derivative instruments) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | $ 115,897 | $ 102,768 |
Gross Derivative Assets, Fair Value | 3,977 | 4,131 |
Gross Derivative Liabilities, Notional Amount | 64,938 | 82,913 |
Gross Derivative Liabilities, Fair Value | 4,802 | 4,048 |
Derivative assets, Counterparty netting | (1,265) | (1,268) |
Derivative assets, Cash collateral | (903) | (1,554) |
Total derivative assets on consolidated balance sheet | 1,809 | 1,309 |
Derivative liabilities, Counterparty netting | (1,265) | (1,268) |
Derivative liabilities, Cash collateral | (1,521) | (760) |
Total derivative liabilities on consolidated balance sheet | 2,016 | 2,020 |
Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Notional Amount | 0 | 43,900 |
Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Fair Value | 3,100 | 2,300 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 175 | 301 |
Gross Derivative Assets, Fair Value | 0 | 1 |
Gross Derivative Liabilities, Notional Amount | 782 | 725 |
Gross Derivative Liabilities, Fair Value | 11 | 2 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 3,527 | 2,903 |
Gross Derivative Assets, Fair Value | 385 | 207 |
Gross Derivative Liabilities, Notional Amount | 2,602 | 914 |
Gross Derivative Liabilities, Fair Value | 184 | 56 |
Derivatives designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 0 | 0 |
Gross Derivative Assets, Fair Value | 0 | 0 |
Gross Derivative Liabilities, Notional Amount | 113 | 121 |
Gross Derivative Liabilities, Fair Value | 7 | 23 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Notional Amount | 0 | |
Gross Derivative Liabilities, Fair Value | 0 | |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 51,030 | 45,846 |
Gross Derivative Assets, Fair Value | 2,328 | 3,161 |
Gross Derivative Liabilities, Notional Amount | 44,211 | 65,733 |
Gross Derivative Liabilities, Fair Value | 3,066 | 2,197 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 9,468 | 9,472 |
Gross Derivative Assets, Fair Value | 935 | 559 |
Gross Derivative Liabilities, Notional Amount | 7,674 | 8,900 |
Gross Derivative Liabilities, Fair Value | 1,185 | 1,148 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 14,060 | 6,656 |
Gross Derivative Assets, Fair Value | 305 | 177 |
Gross Derivative Liabilities, Notional Amount | 8,633 | 5,028 |
Gross Derivative Liabilities, Fair Value | 12 | 45 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 0 | 0 |
Gross Derivative Assets, Fair Value | 0 | 0 |
Gross Derivative Liabilities, Notional Amount | 0 | 0 |
Gross Derivative Liabilities, Fair Value | 0 | 0 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 4 | 4 |
Gross Derivative Assets, Fair Value | 2 | 3 |
Gross Derivative Liabilities, Notional Amount | 861 | 1,289 |
Gross Derivative Liabilities, Fair Value | 331 | 508 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 37,633 | 37,586 |
Gross Derivative Assets, Fair Value | 22 | 23 |
Gross Derivative Liabilities, Notional Amount | 62 | 203 |
Gross Derivative Liabilities, Fair Value | 6 | 69 |
Derivatives not designated as hedging instruments | Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 0 | 0 |
Gross Derivative Assets, Fair Value | 0 | 0 |
Gross Derivative Liabilities, Notional Amount | 800 | 1,100 |
Gross Derivative Liabilities, Fair Value | $ 308 | $ 483 |
DERIVATIVES AND HEDGE ACCOUN111
DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Derivative Liabilities, Notional Amount | $ 64,938 | $ 82,913 |
Derivative Liabilities, Fair Value | 4,802 | 4,048 |
Collateral | ||
Collateral posted to third parties for derivative transactions | 4,500 | 3,000 |
Collateral obtained from third parties for derivative transactions | $ 1,500 | $ 1,600 |
DERIVATIVES AND HEDGE ACCOUN112
DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships | $ 123 | $ 90 | $ 156 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Net realized capital gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (7) | 0 | 1 |
Gain (loss) recognized in earnings on hedged items | 1 | 1 | (2) |
Gain (loss) recognized in earnings for ineffective portion | 1 | 1 | 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 | (7) | 0 | (1) |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Interest credited to policyholder account balances | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 0 | 0 | (1) |
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 | 0 | 0 | (1) |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 10 | 9 | 43 |
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 | 10 | 9 | 43 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Loss on extinguishment of debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 0 | 14 | 164 |
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 | 0 | 14 | 164 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Net realized capital gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 294 | 202 | (129) |
Gain (loss) recognized in earnings on hedged items | (335) | (167) | 147 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | (41) | 32 | 8 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | 3 | 10 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Interest credited to policyholder account balances | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 0 | (1) | (3) |
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 | 0 | (1) | (3) |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 24 | 17 | 23 |
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 | 24 | 17 | 23 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Policyholder benefits and claims incurred | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
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) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 0 | 17 | 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 | 0 | 0 | 0 |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | 17 | 2 |
Derivatives designated as hedging instruments | Equity contracts | Fair value hedging | Net realized capital gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 10 | (45) | (23) |
Gain (loss) recognized in earnings on hedged items | (11) | 45 | 22 |
Gain (loss) recognized in earnings for ineffective portion | 0 | 0 | 0 |
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | (1) | 0 | (1) |
Gains/(Losses) Recognized in Earnings Including Gains/(Losses) Attributable to Other | 0 | 0 | 0 |
Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (725) | 876 | 499 |
Derivatives not designated as hedging instruments | Net realized capital gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (895) | 365 | (219) |
Derivatives not designated as hedging instruments | Net investment income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 26 | 26 | 102 |
Derivatives not designated as hedging instruments | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 63 | 401 | 599 |
Derivatives not designated as hedging instruments | Policy fees | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 80 | 78 | 0 |
Derivatives not designated as hedging instruments | Policyholder benefits and claims incurred | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 1 | 6 | 17 |
Derivatives not designated as hedging instruments | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (229) | 339 | 851 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 293 | 416 | 309 |
Derivatives not designated as hedging instruments | Equity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (902) | (182) | (274) |
Derivatives not designated as hedging instruments | Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | (1) | (1) |
Derivatives not designated as hedging instruments | Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 81 | 186 | 263 |
Derivatives not designated as hedging instruments | Other contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 80 | 69 | 192 |
Derivatives not designated as hedging instruments | Embedded derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | $ (48) | $ 49 | $ (841) |
DERIVATIVES AND HEDGE ACCOUN113
DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Credit Derivatives [Line Items] | ||
Collateral posted | $ 4,500 | $ 3,000 |
Obligation to make payments on embedded credit derivatives | 0 | |
Fair value of hybrid securities | 4,800 | 5,700 |
Par value of hybrid securities | 10,100 | 11,200 |
Credit Risk Related Contingent Features [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral posted | 4,000 | 2,100 |
Aggregate fair value of net liability position | 3,000 | $ 2,000 |
Credit Risk Related Contingent Features [Member] | Standard & Poor's, BBB Rating | Moody's, Baa2 Rating | ||
Credit Derivatives [Line Items] | ||
Additional Collateral Aggregate Fair Value | 106 | |
Credit Risk Related Contingent Features [Member] | Standard & Poor's, BBB- Rating | Moody's, Baa3 Rating [Member] | ||
Credit Derivatives [Line Items] | ||
Additional Collateral Aggregate Fair Value | $ 0 | |
Global Capital Markets (GCM) derivatives | Super Senior CDS | Arbitrage | Multi-sector CDOs | ||
Credit Derivatives [Line Items] | ||
Derivative weighted average maturity | 6 years |
GOODWILL (Details)
GOODWILL (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Goodwill Disclosure | |||
Number of steps involved in process of impairment test | item | 2 | ||
Goodwill | |||
Goodwill - gross | $ 5,090 | $ 4,931 | $ 4,952 |
Accumulated impairments | (3,477) | (3,477) | (3,477) |
Net goodwill | 1,613 | 1,454 | 1,475 |
Increase (decrease) due to: | |||
Acquisition | 208 | 28 | |
Other | (73) | (49) | (49) |
Dispositions | (12) | ||
Goodwill - gross | 5,005 | 5,090 | 4,931 |
Accumulated impairments | (3,477) | (3,477) | (3,477) |
Net goodwill | 1,528 | 1,613 | 1,454 |
Goodwill Reallocation | (132) | ||
Liability And Financial Lines [Member] | |||
Goodwill | |||
Goodwill - gross | 1,576 | 1,626 | 1,675 |
Accumulated impairments | (797) | (797) | (797) |
Net goodwill | 779 | 829 | 878 |
Increase (decrease) due to: | |||
Other | (137) | (50) | (49) |
Goodwill - gross | 1,439 | 1,576 | 1,626 |
Accumulated impairments | (797) | (797) | (797) |
Net goodwill | 642 | 779 | 829 |
Property And Special Risks [Member] | |||
Goodwill | |||
Goodwill - gross | 719 | 623 | 623 |
Accumulated impairments | (392) | (392) | (392) |
Net goodwill | 327 | 231 | 231 |
Increase (decrease) due to: | |||
Acquisition | 96 | ||
Other | 67 | ||
Dispositions | (12) | ||
Goodwill - gross | 774 | 719 | 623 |
Accumulated impairments | (392) | (392) | (392) |
Net goodwill | 382 | 327 | 231 |
Personal Insurance [Member] | |||
Goodwill | |||
Goodwill - gross | 2,472 | 2,472 | 2,472 |
Accumulated impairments | (2,211) | (2,211) | (2,211) |
Net goodwill | 261 | 261 | 261 |
Increase (decrease) due to: | |||
Goodwill - gross | 2,472 | 2,472 | 2,472 |
Accumulated impairments | (2,211) | (2,211) | (2,211) |
Net goodwill | 261 | 261 | 261 |
Life Insurance [Member] | |||
Goodwill | |||
Goodwill - gross | 77 | 21 | |
Accumulated impairments | 0 | 0 | |
Net goodwill | 77 | 21 | |
Increase (decrease) due to: | |||
Acquisition | 55 | 21 | |
Other | 1 | ||
Goodwill - gross | 77 | 77 | 21 |
Accumulated impairments | 0 | 0 | 0 |
Net goodwill | 77 | 77 | 21 |
Legacy Property And Casualty Run Off Insurance Lines [Member] | |||
Increase (decrease) due to: | |||
Goodwill Reallocation | 75 | ||
Legacy Life Insurance Run Off Lines [Member] | |||
Increase (decrease) due to: | |||
Goodwill Reallocation | 57 | ||
Other Operations | |||
Goodwill | |||
Goodwill - gross | 27 | 7 | |
Accumulated impairments | 0 | 0 | |
Net goodwill | 27 | 7 | |
Increase (decrease) due to: | |||
Acquisition | 20 | 7 | |
Goodwill - gross | 27 | 27 | 7 |
Accumulated impairments | 0 | 0 | 0 |
Net goodwill | 27 | 27 | 7 |
Legacy portfolio [Member] | |||
Goodwill | |||
Goodwill - gross | 219 | 182 | 182 |
Accumulated impairments | (77) | (77) | (77) |
Net goodwill | 142 | 105 | 105 |
Increase (decrease) due to: | |||
Acquisition | 37 | ||
Other | (3) | ||
Goodwill - gross | 216 | 219 | 182 |
Accumulated impairments | (77) | (77) | (77) |
Net goodwill | $ 139 | $ 142 | $ 105 |
INSURANCE LIABILITIES (Details
INSURANCE LIABILITIES (Details - Liability for Unpaid Losses and Loss Adjustment Expenses - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | 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 | ||||||
Gross loss reserves before reinsurance and discount, net of contractual deductible recoverable amounts due from policyholders | $ 12,800 | $ 12,600 | ||||
Collateral Held For Deductible Recoverable Amounts | 9,700 | 9,600 | ||||
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 | $ 74,942 | $ 77,260 | $ 81,547 | |||
Reinsurance recoverable, balance at the beginning of the year | (14,339) | (15,648) | (17,231) | |||
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance | 60,603 | 61,612 | 64,316 | |||
Foreign exchange effect | (463) | (1,429) | (1,061) | |||
Dispositions | (1,058) | 0 | 0 | |||
Changes in net loss reserves due to retroactive asbestos reinsurance transaction | 0 | 20 | $ 141 | |||
Total | 59,082 | 60,203 | 63,396 | |||
Losses and loss expenses incurred | ||||||
Current year | 20,232 | 20,308 | 21,279 | |||
Prior years, accretion of discount | (422) | (71) | 478 | |||
Total | 25,598 | 24,356 | 22,460 | |||
Losses and loss expenses paid | ||||||
Current year | (5,825) | (5,751) | (6,358) | |||
Prior years | (16,908) | (18,205) | (17,886) | |||
Total | (22,733) | (23,956) | (24,244) | |||
Reclassified to liabilities held for sale | (402) | |||||
Net liability for unpaid claims and claims adjustment expense, balance at the end of the year | 61,545 | 60,603 | 61,612 | |||
Reinsurance recoverable, balance at the end of the year | 15,532 | 14,339 | 15,648 | |||
Total, balance at the end of the year | 77,077 | 74,942 | 77,260 | |||
Net Loss Reserves | 61,545 | 60,603 | 64,316 | 61,545 | 60,603 | $ 61,612 |
Loss sensitive premium adjustment | (33) | (49) | 105 | |||
NICO [Member] | ||||||
Losses and loss expenses paid | ||||||
Net of reinsurance amount reflecting cession | 0 | 1,800 | ||||
Aggregate Limit, retroactive reinsurance agreement | 0 | |||||
Reinsurance, Additional Recoveries | 0 | $ 0 | ||||
Asbestos and Environmental | ||||||
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense: | ||||||
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance | 722 | |||||
Losses and loss expenses paid | ||||||
Net liability for unpaid claims and claims adjustment expense, balance at the end of the year | 0 | 722 | ||||
Net Loss Reserves | $ 0 | $ 722 | $ 0 | $ 722 |
INSURANCE LIABILITIES (Detai116
INSURANCE LIABILITIES (Details - Reconciliation of the Net Incurred and Paid Claims Development - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | $ 61,545 | $ 60,603 | $ 61,612 | $ 64,316 |
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 15,532 | 14,339 | 15,648 | 17,231 |
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 77,077 | $ 74,942 | $ 77,260 | $ 81,547 |
Reportable Subsegments [Member] | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 57,587 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 13,363 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 70,950 | |||
Reportable Subsegments [Member] | U.S. Long Tail Insurance Lines | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 5,967 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 1,679 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 7,646 | |||
Reportable Subsegments [Member] | Commercial Insurance [Member] | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 48,166 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 11,307 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 59,473 | |||
Reportable Subsegments [Member] | Commercial Insurance [Member] | Liability And Financial Lines [Member] | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 42,253 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 9,711 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 51,964 | |||
Reportable Subsegments [Member] | Commercial Insurance [Member] | Liability And Financial Lines [Member] | U.S. Workers Compensation | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 13,069 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 2,879 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 15,948 | |||
Reportable Subsegments [Member] | Commercial Insurance [Member] | Liability And Financial Lines [Member] | U.S. Excess Casualty | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 8,749 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 1,115 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 9,864 | |||
Reportable Subsegments [Member] | Commercial Insurance [Member] | Liability And Financial Lines [Member] | U.S. Other Casualty | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 8,746 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 3,209 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 11,955 | |||
Reportable Subsegments [Member] | Commercial Insurance [Member] | Liability And Financial Lines [Member] | U.S. Financial Lines | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 6,102 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 1,195 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 7,297 | |||
Reportable Subsegments [Member] | Commercial Insurance [Member] | Liability And Financial Lines [Member] | Europe Casualty and Financial Lines | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 5,587 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 1,313 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 6,900 | |||
Reportable Subsegments [Member] | Commercial Insurance [Member] | Property And Special Risks [Member] | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 5,913 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 1,596 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 7,509 | |||
Reportable Subsegments [Member] | Commercial Insurance [Member] | Property And Special Risks [Member] | U.S. And Europe | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 5,913 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 1,596 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 7,509 | |||
Reportable Subsegments [Member] | Consumer Insurance [Member] | Personal Insurance [Member] | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 3,454 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 377 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 3,831 | |||
Reportable Subsegments [Member] | Consumer Insurance [Member] | Personal Insurance [Member] | U.S. Europe And Japan | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 3,454 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 377 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 3,831 | |||
Reportable Subsegments [Member] | Legacy portfolio [Member] | U.S. Long Tail Insurance Lines | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Net Loss Reserves | 5,967 | |||
Reinsurance Recoverable For Unpaid Claims And Claims Adjustments | 1,679 | |||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 7,646 | |||
Consolidation, Eliminations [Member] | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 77,077 | |||
Consolidation, Eliminations [Member] | Discount On Workers Compensation Lines | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | (3,570) | |||
Consolidation, Eliminations [Member] | Other Product Lines | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | 6,192 | |||
Consolidation, Eliminations [Member] | Unallocated Loss Adjustment Expenses | ||||
Liability For Claims And Claims Adjustment Expense [LineItems] | ||||
Gross Liability for Unpaid Loss and Loss Adjustment Expenses | $ 3,505 |
INSURANCE LIABILITIES (Detai117
INSURANCE LIABILITIES (Details - Undiscounted, Incurred and Paid Losses and Allocated Loss Adjustment Expenses $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($) | |
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 8,746 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 1,537 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | (7,690) | |||||||||
U.S. Workers Compensation | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 28,764 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 3,429 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 13,069 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | (19,124) | |||||||||
2016 Prior Year Development | 1,920 | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 13 | |||||||||
Total | 1,057 | |||||||||
U.S. Excess Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 14,902 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 1,537 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 8,749 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | (7,690) | |||||||||
2016 Prior Year Development | 1,058 | $ 1,400 | $ (106) | |||||||
Unallocated Loss Adjustment Expense Prior Year Development | (67) | |||||||||
Total | 1,099 | |||||||||
U.S. Other Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 23,085 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 1,505 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | (15,844) | |||||||||
2016 Prior Year Development | 1,563 | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 116 | |||||||||
Total | 1,160 | |||||||||
U.S. Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 18,377 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 411 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 6,102 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | (12,686) | |||||||||
2016 Prior Year Development | 306 | 502 | 160 | |||||||
Unallocated Loss Adjustment Expense Prior Year Development | 37 | |||||||||
Total | 237 | |||||||||
Europe Casualty and Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 13,202 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 390 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 5,587 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | (8,005) | |||||||||
2016 Prior Year Development | 355 | 139 | 24 | |||||||
Unallocated Loss Adjustment Expense Prior Year Development | 2 | |||||||||
Total | 360 | |||||||||
U.S. And Europe | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 32,284 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 97 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 5,913 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | (26,468) | |||||||||
2016 Prior Year Development | 402 | (128) | ||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 42 | |||||||||
Total | 354 | |||||||||
U.S. Europe And Japan | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 46,773 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 26 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 3,454 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | (43,345) | |||||||||
2016 Prior Year Development | (114) | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 3 | |||||||||
Total | (114) | |||||||||
U.S. Long Tail Insurance Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 6,260 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 3,878 | |||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 5,967 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | (4,171) | |||||||||
2016 Prior Year Development | 390 | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | (5) | |||||||||
Total | 50 | |||||||||
Prior to 2007 | ||||||||||
Claims Development [LineItems] | ||||||||||
2016 Prior Year Development | 1,544 | 1,798 | 1,070 | |||||||
Prior to 2007 | U.S. Workers Compensation | ||||||||||
Claims Development [LineItems] | ||||||||||
2016 Prior Year Development | 850 | 122 | 158 | |||||||
Prior to 2007 | U.S. Excess Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
2016 Prior Year Development | 26 | 476 | 437 | |||||||
Prior to 2007 | U.S. Other Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
2016 Prior Year Development | 287 | 366 | 242 | |||||||
Prior to 2007 | U.S. Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
2016 Prior Year Development | 32 | 135 | (24) | |||||||
Prior to 2007 | Europe Casualty and Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
2016 Prior Year Development | (7) | |||||||||
Prior to 2007 | U.S. And Europe | ||||||||||
Claims Development [LineItems] | ||||||||||
2016 Prior Year Development | 6 | |||||||||
Prior to 2007 | U.S. Europe And Japan | ||||||||||
Claims Development [LineItems] | ||||||||||
2016 Prior Year Development | (3) | |||||||||
Prior to 2007 | U.S. Long Tail Insurance Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
2016 Prior Year Development | 345 | |||||||||
Prior to 2007 | Property And Special Risks [Member] | ||||||||||
Claims Development [LineItems] | ||||||||||
2016 Prior Year Development | 6 | 16 | (4) | |||||||
Prior to 2007 | Legacy portfolio [Member] | ||||||||||
Claims Development [LineItems] | ||||||||||
2016 Prior Year Development | 345 | 621 | 258 | |||||||
Prior to 2007 | All Other | ||||||||||
Claims Development [LineItems] | ||||||||||
2016 Prior Year Development | (2) | 62 | 3 | |||||||
2007 | U.S. Workers Compensation | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 4,548 | 4,395 | 4,379 | $ 4,469 | $ 4,513 | $ 4,528 | $ 4,544 | $ 4,414 | $ 4,441 | $ 4,505 |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 3,855 | 3,773 | 3,665 | 3,577 | 3,359 | 3,122 | 2,844 | 2,452 | 1,856 | 926 |
2016 Prior Year Development | 153 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 392 | |||||||||
Cumulative Number of Reported Claims | item | 225,243 | |||||||||
2007 | U.S. Excess Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,194 | 2,113 | 2,183 | 2,208 | 2,232 | 2,072 | 2,246 | 1,752 | 1,820 | 1,854 |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,857 | 1,796 | 1,712 | 1,613 | 1,402 | 1,085 | 732 | 301 | 102 | 8 |
2016 Prior Year Development | 81 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 228 | |||||||||
Cumulative Number of Reported Claims | item | 6,423 | |||||||||
2007 | U.S. Other Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,874 | 2,846 | 2,774 | 2,787 | 2,805 | 2,770 | 2,736 | 2,615 | 2,633 | 2,892 |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,577 | 2,525 | 2,422 | 2,377 | 2,244 | 1,974 | 1,621 | 1,206 | 773 | 386 |
2016 Prior Year Development | 28 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 166 | |||||||||
Cumulative Number of Reported Claims | item | 102,070 | |||||||||
2007 | U.S. Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,968 | 1,972 | 1,932 | 1,964 | 2,008 | 2,022 | 2,015 | 2,079 | 2,091 | 1,900 |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,811 | 1,800 | 1,748 | 1,684 | 1,531 | 1,364 | 1,184 | 816 | 413 | 61 |
2016 Prior Year Development | (4) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 74 | |||||||||
Cumulative Number of Reported Claims | item | 19,088 | |||||||||
2007 | Europe Casualty and Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,184 | 1,178 | 1,171 | 1,167 | 1,088 | 1,094 | 1,057 | 1,084 | 1,073 | 1,047 |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,067 | 1,025 | 996 | 961 | 846 | 765 | 632 | 454 | 297 | 88 |
2016 Prior Year Development | 6 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 14 | |||||||||
Cumulative Number of Reported Claims | item | 191,746 | |||||||||
2007 | U.S. And Europe | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,070 | 2,072 | 2,069 | 2,073 | 2,073 | 2,087 | 2,119 | 2,153 | 2,061 | 2,259 |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,007 | 2,006 | 1,982 | 1,962 | 1,930 | 1,880 | 1,784 | 1,629 | 1,294 | 520 |
2016 Prior Year Development | (2) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 34 | |||||||||
Cumulative Number of Reported Claims | item | 88,737 | |||||||||
2007 | U.S. Europe And Japan | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 4,744 | 4,745 | 4,742 | 4,742 | 4,739 | 4,729 | 4,710 | 4,725 | 4,805 | 4,662 |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 4,731 | 4,727 | 4,717 | 4,699 | 4,670 | 4,628 | 4,547 | 4,395 | 4,162 | 2,867 |
2016 Prior Year Development | (1) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 4 | |||||||||
Cumulative Number of Reported Claims | item | 1,737,033 | |||||||||
2007 | U.S. Long Tail Insurance Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 876 | 860 | 859 | 851 | 843 | 833 | 801 | 807 | 743 | 959 |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 784 | 770 | 751 | 710 | 641 | 578 | 431 | 321 | 230 | $ 145 |
2016 Prior Year Development | 16 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 55 | |||||||||
Cumulative Number of Reported Claims | item | 56,148 | |||||||||
2008 | U.S. Workers Compensation | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 4,547 | 4,398 | 4,385 | 4,398 | 4,471 | 4,425 | 4,422 | 4,184 | 4,114 | |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 3,707 | 3,609 | 3,476 | 3,272 | 3,044 | 2,655 | 2,252 | 1,678 | 785 | |
2016 Prior Year Development | 149 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 504 | |||||||||
Cumulative Number of Reported Claims | item | 198,597 | |||||||||
2008 | U.S. Excess Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,638 | 1,667 | 1,721 | 1,884 | 1,832 | 1,951 | 2,173 | 2,000 | 1,979 | |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,226 | 1,172 | 1,061 | 954 | 842 | 667 | 439 | 97 | 11 | |
2016 Prior Year Development | (29) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 228 | |||||||||
Cumulative Number of Reported Claims | item | 4,561 | |||||||||
2008 | U.S. Other Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 3,113 | 3,074 | 3,007 | 2,903 | 2,901 | 2,821 | 2,757 | 2,693 | 2,886 | |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,755 | 2,651 | 2,506 | 2,316 | 2,039 | 1,691 | 1,171 | 711 | 277 | |
2016 Prior Year Development | 39 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 274 | |||||||||
Cumulative Number of Reported Claims | item | 116,937 | |||||||||
2008 | U.S. Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,112 | 2,089 | 1,964 | 1,906 | 1,970 | 1,861 | 2,049 | 2,084 | 1,911 | |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,001 | 1,898 | 1,712 | 1,590 | 1,385 | 1,183 | 888 | 420 | 32 | |
2016 Prior Year Development | 23 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 32 | |||||||||
Cumulative Number of Reported Claims | item | 21,709 | |||||||||
2008 | Europe Casualty and Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,426 | 1,420 | 1,458 | 1,430 | 1,424 | 1,401 | 1,424 | 1,396 | 1,311 | |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,304 | 1,242 | 1,199 | 1,128 | 1,014 | 870 | 655 | 429 | 116 | |
2016 Prior Year Development | 6 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 53 | |||||||||
Cumulative Number of Reported Claims | item | 238,417 | |||||||||
2008 | U.S. And Europe | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 4,124 | 4,132 | 4,140 | 4,169 | 4,225 | 4,276 | 4,318 | 4,360 | 4,114 | |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 4,064 | 4,046 | 4,030 | 4,013 | 3,970 | 3,825 | 3,600 | 3,029 | 1,455 | |
2016 Prior Year Development | (8) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 31 | |||||||||
Cumulative Number of Reported Claims | item | 95,060 | |||||||||
2008 | U.S. Europe And Japan | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 4,630 | 4,631 | 4,625 | 4,621 | 4,618 | 4,611 | 4,592 | 4,592 | 4,535 | |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 4,608 | 4,596 | 4,584 | 4,557 | 4,511 | 4,432 | 4,275 | 3,958 | 2,781 | |
2016 Prior Year Development | (1) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 9 | |||||||||
Cumulative Number of Reported Claims | item | 1,851,828 | |||||||||
2008 | U.S. Long Tail Insurance Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 967 | 961 | 964 | 911 | 895 | 855 | 872 | 1,025 | 936 | |
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 830 | 817 | 773 | 711 | 643 | 559 | 485 | 360 | $ 130 | |
2016 Prior Year Development | 6 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 75 | |||||||||
Cumulative Number of Reported Claims | item | 40,046 | |||||||||
2009 | U.S. Workers Compensation | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 3,733 | 3,606 | 3,616 | 3,639 | 3,666 | 3,608 | 3,633 | 3,466 | ||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,887 | 2,780 | 2,621 | 2,390 | 2,120 | 1,756 | 1,328 | 630 | ||
2016 Prior Year Development | 127 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 547 | |||||||||
Cumulative Number of Reported Claims | item | 147,209 | |||||||||
2009 | U.S. Excess Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,520 | 1,418 | 1,328 | 1,465 | 1,650 | 1,812 | 1,920 | 1,851 | ||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,175 | 965 | 788 | 624 | 449 | 249 | 69 | 8 | ||
2016 Prior Year Development | 102 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 224 | |||||||||
Cumulative Number of Reported Claims | item | 3,689 | |||||||||
2009 | U.S. Other Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,791 | 2,807 | 2,745 | 2,624 | 2,509 | 2,513 | 2,445 | 2,343 | ||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,534 | 2,314 | 2,168 | 1,929 | 1,577 | 1,180 | 770 | 378 | ||
2016 Prior Year Development | (16) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 151 | |||||||||
Cumulative Number of Reported Claims | item | 89,845 | |||||||||
2009 | U.S. Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,289 | 2,196 | 2,203 | 2,102 | 1,909 | 1,855 | 1,806 | 1,719 | ||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,075 | 1,968 | 1,839 | 1,614 | 1,273 | 887 | 499 | 129 | ||
2016 Prior Year Development | 93 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 34 | |||||||||
Cumulative Number of Reported Claims | item | 22,595 | |||||||||
2009 | Europe Casualty and Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,759 | 1,704 | 1,699 | 1,689 | 1,661 | 1,659 | 1,627 | 1,539 | ||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,421 | 1,309 | 1,156 | 1,033 | 881 | 645 | 379 | 125 | ||
2016 Prior Year Development | 55 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 78 | |||||||||
Cumulative Number of Reported Claims | item | 232,281 | |||||||||
2009 | U.S. And Europe | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,272 | 2,265 | 2,285 | 2,282 | 2,327 | 2,318 | 2,320 | 2,608 | ||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,206 | 2,184 | 2,156 | 2,097 | 1,985 | 1,780 | 1,438 | 661 | ||
2016 Prior Year Development | 7 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 32 | |||||||||
Cumulative Number of Reported Claims | item | 79,096 | |||||||||
2009 | U.S. Europe And Japan | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 4,611 | 4,612 | 4,614 | 4,616 | 4,624 | 4,590 | 4,634 | 4,698 | ||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 4,587 | 4,570 | 4,545 | 4,504 | 4,428 | 4,268 | 4,016 | 2,780 | ||
2016 Prior Year Development | (1) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 7 | |||||||||
Cumulative Number of Reported Claims | item | 1,959,522 | |||||||||
2009 | U.S. Long Tail Insurance Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 564 | 584 | 588 | 621 | 566 | 532 | 523 | 543 | ||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 431 | 414 | 394 | 354 | 273 | 220 | 125 | $ 38 | ||
2016 Prior Year Development | (20) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 91 | |||||||||
Cumulative Number of Reported Claims | item | 16,213 | |||||||||
2010 | U.S. Workers Compensation | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 3,311 | 3,214 | 3,211 | 3,148 | 3,125 | 3,049 | 2,706 | |||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,426 | 2,288 | 2,126 | 1,855 | 1,537 | 1,093 | 550 | |||
2016 Prior Year Development | 97 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 550 | |||||||||
Cumulative Number of Reported Claims | item | 132,987 | |||||||||
2010 | U.S. Excess Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,722 | 1,736 | 1,649 | 1,782 | 2,091 | 2,094 | 1,885 | |||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,052 | 946 | 795 | 654 | 475 | 197 | 10 | |||
2016 Prior Year Development | (14) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 399 | |||||||||
Cumulative Number of Reported Claims | item | 3,459 | |||||||||
2010 | U.S. Other Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,420 | 2,301 | 2,258 | 2,109 | 2,160 | 2,016 | 2,037 | |||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,889 | 1,741 | 1,557 | 1,275 | 902 | 578 | 279 | |||
2016 Prior Year Development | 119 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 329 | |||||||||
Cumulative Number of Reported Claims | item | 95,749 | |||||||||
2010 | U.S. Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,485 | 1,470 | 1,373 | 1,381 | 1,420 | 1,526 | 1,576 | |||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,281 | 1,180 | 1,017 | 800 | 566 | 285 | 31 | |||
2016 Prior Year Development | 15 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 46 | |||||||||
Cumulative Number of Reported Claims | item | 20,126 | |||||||||
2010 | Europe Casualty and Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,250 | 1,252 | 1,218 | 1,277 | 1,255 | 1,258 | 1,300 | |||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 995 | 936 | 850 | 725 | 570 | 378 | 133 | |||
2016 Prior Year Development | (2) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 103 | |||||||||
Cumulative Number of Reported Claims | item | 265,264 | |||||||||
2010 | U.S. And Europe | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,692 | 2,684 | 2,716 | 2,710 | 2,687 | 2,747 | 3,014 | |||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,612 | 2,570 | 2,496 | 2,396 | 2,207 | 1,849 | 828 | |||
2016 Prior Year Development | 8 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 25 | |||||||||
Cumulative Number of Reported Claims | item | 78,713 | |||||||||
2010 | U.S. Europe And Japan | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 4,832 | 4,832 | 4,838 | 4,836 | 4,846 | 4,826 | 4,819 | |||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 4,788 | 4,764 | 4,721 | 4,643 | 4,496 | 4,184 | 2,920 | |||
2016 Prior Year Development | 0 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 13 | |||||||||
Cumulative Number of Reported Claims | item | 2,215,816 | |||||||||
2010 | U.S. Long Tail Insurance Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 601 | 572 | 576 | 548 | 527 | 521 | 633 | |||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 445 | 425 | 395 | 313 | 235 | 142 | $ 55 | |||
2016 Prior Year Development | 29 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 81 | |||||||||
Cumulative Number of Reported Claims | item | 8,475 | |||||||||
2011 | U.S. Workers Compensation | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 3,152 | 3,113 | 3,158 | 3,091 | 2,953 | 2,901 | ||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,285 | 2,129 | 1,884 | 1,561 | 1,129 | 519 | ||||
2016 Prior Year Development | 39 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 521 | |||||||||
Cumulative Number of Reported Claims | item | 124,486 | |||||||||
2011 | U.S. Excess Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,611 | 1,528 | 1,427 | 1,595 | 1,824 | 1,784 | ||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 921 | 716 | 387 | 225 | 63 | 5 | ||||
2016 Prior Year Development | 83 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 425 | |||||||||
Cumulative Number of Reported Claims | item | 3,368 | |||||||||
2011 | U.S. Other Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,639 | 2,601 | 2,458 | 2,321 | 2,222 | 1,970 | ||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,048 | 1,822 | 1,488 | 1,109 | 726 | 235 | ||||
2016 Prior Year Development | 38 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 381 | |||||||||
Cumulative Number of Reported Claims | item | 74,916 | |||||||||
2011 | U.S. Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,951 | 1,921 | 1,887 | 1,897 | 1,729 | 1,812 | ||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,749 | 1,529 | 1,210 | 886 | 494 | 165 | ||||
2016 Prior Year Development | 30 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 66 | |||||||||
Cumulative Number of Reported Claims | item | 20,008 | |||||||||
2011 | Europe Casualty and Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,377 | 1,364 | 1,284 | 1,239 | 1,175 | 1,239 | ||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 985 | 868 | 733 | 507 | 339 | 127 | ||||
2016 Prior Year Development | 13 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 157 | |||||||||
Cumulative Number of Reported Claims | item | 256,431 | |||||||||
2011 | U.S. And Europe | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 3,532 | 3,491 | 3,511 | 3,514 | 3,586 | 3,757 | ||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 3,370 | 3,284 | 3,134 | 2,924 | 2,400 | 1,049 | ||||
2016 Prior Year Development | 41 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 47 | |||||||||
Cumulative Number of Reported Claims | item | 79,542 | |||||||||
2011 | U.S. Europe And Japan | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 5,250 | 5,258 | 5,272 | 5,275 | 5,315 | 5,226 | ||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 5,182 | 5,146 | 5,064 | 4,927 | 4,631 | 3,270 | ||||
2016 Prior Year Development | (8) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 25 | |||||||||
Cumulative Number of Reported Claims | item | 2,159,211 | |||||||||
2011 | U.S. Long Tail Insurance Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 678 | 669 | 635 | 571 | 538 | 528 | ||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 525 | 442 | 379 | 253 | 135 | $ 19 | ||||
2016 Prior Year Development | 9 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 88 | |||||||||
Cumulative Number of Reported Claims | item | 7,776 | |||||||||
2012 | U.S. Workers Compensation | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,334 | 2,260 | 2,286 | 2,194 | 2,382 | |||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,440 | 1,272 | 1,089 | 804 | 415 | |||||
2016 Prior Year Development | 74 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 571 | |||||||||
Cumulative Number of Reported Claims | item | 70,426 | |||||||||
2012 | U.S. Excess Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,566 | 1,486 | 1,239 | 1,400 | 1,604 | |||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 649 | 495 | 288 | 106 | 3 | |||||
2016 Prior Year Development | 80 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 621 | |||||||||
Cumulative Number of Reported Claims | item | 3,252 | |||||||||
2012 | U.S. Other Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,325 | 2,183 | 2,172 | 2,049 | 1,866 | |||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,644 | 1,349 | 1,002 | 712 | 382 | |||||
2016 Prior Year Development | 142 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 381 | |||||||||
Cumulative Number of Reported Claims | item | 41,586 | |||||||||
2012 | U.S. Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,942 | 1,889 | 1,782 | 1,747 | 1,579 | |||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,497 | 1,253 | 815 | 406 | 76 | |||||
2016 Prior Year Development | 53 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 199 | |||||||||
Cumulative Number of Reported Claims | item | 20,029 | |||||||||
2012 | Europe Casualty and Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,146 | 1,081 | 1,005 | 1,041 | 1,074 | |||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 734 | 615 | 438 | 303 | 110 | |||||
2016 Prior Year Development | 65 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 172 | |||||||||
Cumulative Number of Reported Claims | item | 209,632 | |||||||||
2012 | U.S. And Europe | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 4,329 | 4,216 | 4,232 | 4,285 | 4,154 | |||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 3,995 | 3,789 | 3,458 | 2,794 | 878 | |||||
2016 Prior Year Development | 113 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 76 | |||||||||
Cumulative Number of Reported Claims | item | 71,951 | |||||||||
2012 | U.S. Europe And Japan | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 4,943 | 4,956 | 4,998 | 5,028 | 5,135 | |||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 4,858 | 4,774 | 4,624 | 4,333 | 2,868 | |||||
2016 Prior Year Development | (13) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 15 | |||||||||
Cumulative Number of Reported Claims | item | 2,096,881 | |||||||||
2012 | U.S. Long Tail Insurance Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 745 | 781 | 736 | 674 | 623 | |||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 476 | 409 | 282 | 191 | $ 85 | |||||
2016 Prior Year Development | (36) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 105 | |||||||||
Cumulative Number of Reported Claims | item | 4,033 | |||||||||
2013 | U.S. Workers Compensation | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,060 | 1,950 | 1,880 | 1,932 | ||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,067 | 879 | 619 | 282 | ||||||
2016 Prior Year Development | 110 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 645 | |||||||||
Cumulative Number of Reported Claims | item | 46,175 | |||||||||
2013 | U.S. Excess Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,276 | 1,136 | 998 | 1,096 | ||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 386 | 206 | 105 | 15 | ||||||
2016 Prior Year Development | 140 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 672 | |||||||||
Cumulative Number of Reported Claims | item | 2,494 | |||||||||
2013 | U.S. Other Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,116 | 1,882 | 1,702 | 1,580 | ||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,206 | 918 | 553 | 169 | ||||||
2016 Prior Year Development | 234 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 570 | |||||||||
Cumulative Number of Reported Claims | item | 36,174 | |||||||||
2013 | U.S. Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,567 | 1,622 | 1,669 | 1,741 | ||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 949 | 687 | 333 | 43 | ||||||
2016 Prior Year Development | (55) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 417 | |||||||||
Cumulative Number of Reported Claims | item | 18,912 | |||||||||
2013 | Europe Casualty and Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,124 | 1,109 | 1,124 | 1,080 | ||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 664 | 493 | 340 | 95 | ||||||
2016 Prior Year Development | 15 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 182 | |||||||||
Cumulative Number of Reported Claims | item | 176,010 | |||||||||
2013 | U.S. And Europe | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 2,781 | 2,715 | 2,877 | 2,837 | ||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,328 | 2,128 | 1,775 | 771 | ||||||
2016 Prior Year Development | 66 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 138 | |||||||||
Cumulative Number of Reported Claims | item | 69,782 | |||||||||
2013 | U.S. Europe And Japan | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 4,576 | 4,602 | 4,640 | 4,714 | ||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 4,408 | 4,261 | 3,963 | 2,671 | ||||||
2016 Prior Year Development | (26) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 52 | |||||||||
Cumulative Number of Reported Claims | item | 2,023,707 | |||||||||
2013 | U.S. Long Tail Insurance Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 566 | 585 | 530 | 477 | ||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 316 | 258 | 152 | $ 86 | ||||||
2016 Prior Year Development | (19) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 152 | |||||||||
Cumulative Number of Reported Claims | item | 2,483 | |||||||||
2014 | U.S. Workers Compensation | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,916 | 1,764 | 1,729 | |||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 786 | 558 | 231 | |||||||
2016 Prior Year Development | 152 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 807 | |||||||||
Cumulative Number of Reported Claims | item | 39,000 | |||||||||
2014 | U.S. Excess Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,185 | 996 | 873 | |||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 211 | 70 | 3 | |||||||
2016 Prior Year Development | 189 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 788 | |||||||||
Cumulative Number of Reported Claims | item | 1,791 | |||||||||
2014 | U.S. Other Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,920 | 1,677 | 1,695 | |||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 816 | 566 | 204 | |||||||
2016 Prior Year Development | 243 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 749 | |||||||||
Cumulative Number of Reported Claims | item | 33,677 | |||||||||
2014 | U.S. Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,775 | 1,712 | 1,742 | |||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 854 | 371 | 66 | |||||||
2016 Prior Year Development | 63 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 612 | |||||||||
Cumulative Number of Reported Claims | item | 17,091 | |||||||||
2014 | Europe Casualty and Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,166 | 1,123 | 1,143 | |||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 447 | 273 | 79 | |||||||
2016 Prior Year Development | 43 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 376 | |||||||||
Cumulative Number of Reported Claims | item | 164,208 | |||||||||
2014 | U.S. And Europe | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 3,244 | 3,154 | 3,307 | |||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,547 | 2,076 | 951 | |||||||
2016 Prior Year Development | 90 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 235 | |||||||||
Cumulative Number of Reported Claims | item | 81,948 | |||||||||
2014 | U.S. Europe And Japan | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 4,376 | 4,392 | 4,376 | |||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 4,024 | 3,708 | 2,495 | |||||||
2016 Prior Year Development | (16) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 126 | |||||||||
Cumulative Number of Reported Claims | item | 2,008,729 | |||||||||
2014 | U.S. Long Tail Insurance Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 451 | 472 | 374 | |||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 183 | 93 | $ 20 | |||||||
2016 Prior Year Development | (21) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 192 | |||||||||
Cumulative Number of Reported Claims | item | 2,246 | |||||||||
2015 | U.S. Workers Compensation | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,864 | 1,708 | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 524 | 234 | ||||||||
2016 Prior Year Development | 156 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,027 | |||||||||
Cumulative Number of Reported Claims | item | 34,241 | |||||||||
2015 | U.S. Excess Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,380 | 913 | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 196 | 9 | ||||||||
2016 Prior Year Development | 467 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 972 | |||||||||
Cumulative Number of Reported Claims | item | 1,325 | |||||||||
2015 | U.S. Other Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,607 | 1,274 | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 303 | 93 | ||||||||
2016 Prior Year Development | 333 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 909 | |||||||||
Cumulative Number of Reported Claims | item | 29,372 | |||||||||
2015 | U.S. Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,689 | 1,670 | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 393 | 66 | ||||||||
2016 Prior Year Development | 19 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,045 | |||||||||
Cumulative Number of Reported Claims | item | 15,386 | |||||||||
2015 | Europe Casualty and Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,363 | 1,204 | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 261 | 74 | ||||||||
2016 Prior Year Development | 159 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 736 | |||||||||
Cumulative Number of Reported Claims | item | 175,571 | |||||||||
2015 | U.S. And Europe | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 3,607 | 3,568 | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,255 | 1,094 | ||||||||
2016 Prior Year Development | 39 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 500 | |||||||||
Cumulative Number of Reported Claims | item | 82,836 | |||||||||
2015 | U.S. Europe And Japan | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 4,385 | 4,433 | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 3,712 | 2,497 | ||||||||
2016 Prior Year Development | (48) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 276 | |||||||||
Cumulative Number of Reported Claims | item | 1,949,211 | |||||||||
2015 | U.S. Long Tail Insurance Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 520 | 434 | ||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 129 | $ 34 | ||||||||
2016 Prior Year Development | 86 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 204 | |||||||||
Cumulative Number of Reported Claims | item | 2,154 | |||||||||
2016 | U.S. Workers Compensation | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,299 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 147 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 965 | |||||||||
Cumulative Number of Reported Claims | item | 25,164 | |||||||||
2016 | U.S. Excess Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 810 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 17 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 748 | |||||||||
Cumulative Number of Reported Claims | item | 540 | |||||||||
2016 | U.S. Other Casualty | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,280 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 72 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,044 | |||||||||
Cumulative Number of Reported Claims | item | 19,774 | |||||||||
2016 | U.S. Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,599 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 76 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,392 | |||||||||
Cumulative Number of Reported Claims | item | 14,001 | |||||||||
2016 | Europe Casualty and Financial Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 1,407 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 127 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,029 | |||||||||
Cumulative Number of Reported Claims | item | 178,185 | |||||||||
2016 | U.S. And Europe | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 3,633 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 1,084 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 921 | |||||||||
Cumulative Number of Reported Claims | item | 61,956 | |||||||||
2016 | U.S. Europe And Japan | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 4,426 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 2,447 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 902 | |||||||||
Cumulative Number of Reported Claims | item | 1,702,448 | |||||||||
2016 | U.S. Long Tail Insurance Lines | ||||||||||
Claims Development [LineItems] | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | $ 292 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below | 52 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 197 | |||||||||
Cumulative Number of Reported Claims | item | 1,483 |
INSURANCE LIABILITIES (Detai118
INSURANCE LIABILITIES (Details - Annual Percentage Claims Payout | Dec. 31, 2016 |
U.S. Workers Compensation | |
Shortduration Insurance Contracts Historical Claims Duration [LineItems] | |
Year 1 | 15.50% |
Year 2 | 17.80% |
Year 3 | 12.60% |
Year 4 | 9.20% |
Year 5 | 7.50% |
Year 6 | 5.20% |
Year 7 | 4.40% |
Year 8 | 2.60% |
Year 9 | 2.30% |
Year 10 | 1.80% |
U.S. Excess Casualty | |
Shortduration Insurance Contracts Historical Claims Duration [LineItems] | |
Year 1 | 0.70% |
Year 2 | 6.80% |
Year 3 | 12.40% |
Year 4 | 13.50% |
Year 5 | 12.80% |
Year 6 | 10.70% |
Year 7 | 8.50% |
Year 8 | 8.40% |
Year 9 | 3.50% |
Year 10 | 2.80% |
U.S. Other Casualty | |
Shortduration Insurance Contracts Historical Claims Duration [LineItems] | |
Year 1 | 10.30% |
Year 2 | 15.20% |
Year 3 | 14.40% |
Year 4 | 14.80% |
Year 5 | 12.20% |
Year 6 | 8.60% |
Year 7 | 5.50% |
Year 8 | 4.70% |
Year 9 | 3.50% |
Year 10 | 1.80% |
U.S. Financial Lines | |
Shortduration Insurance Contracts Historical Claims Duration [LineItems] | |
Year 1 | 4.00% |
Year 2 | 17.60% |
Year 3 | 21.20% |
Year 4 | 17.30% |
Year 5 | 12.90% |
Year 6 | 10.10% |
Year 7 | 6.50% |
Year 8 | 5.60% |
Year 9 | 3.80% |
Year 10 | 0.50% |
Europe Casualty and Financial Lines | |
Shortduration Insurance Contracts Historical Claims Duration [LineItems] | |
Year 1 | 8.20% |
Year 2 | 17.60% |
Year 3 | 14.00% |
Year 4 | 14.70% |
Year 5 | 10.00% |
Year 6 | 7.40% |
Year 7 | 7.00% |
Year 8 | 4.10% |
Year 9 | 3.40% |
Year 10 | 3.50% |
U.S. And Europe | Property And Special Risks [Member] | |
Shortduration Insurance Contracts Historical Claims Duration [LineItems] | |
Year 1 | 28.70% |
Year 2 | 37.00% |
Year 3 | 14.50% |
Year 4 | 7.10% |
Year 5 | 4.30% |
Year 6 | 2.30% |
Year 7 | 1.20% |
Year 8 | 0.80% |
Year 9 | 0.80% |
Year 10 | 0.00% |
U.S. Europe And Japan | Personal Insurance [Member] | |
Shortduration Insurance Contracts Historical Claims Duration [LineItems] | |
Year 1 | 58.90% |
Year 2 | 27.20% |
Year 3 | 6.10% |
Year 4 | 3.10% |
Year 5 | 1.70% |
Year 6 | 0.90% |
Year 7 | 0.60% |
Year 8 | 0.30% |
Year 9 | 0.20% |
Year 10 | 0.10% |
U.S. Run-Off Long Tail Insurance Lines | |
Shortduration Insurance Contracts Historical Claims Duration [LineItems] | |
Year 1 | 10.40% |
Year 2 | 15.70% |
Year 3 | 15.50% |
Year 4 | 12.70% |
Year 5 | 11.90% |
Year 6 | 7.70% |
Year 7 | 5.20% |
Year 8 | 4.10% |
Year 9 | 1.80% |
Year 10 | 1.60% |
INSURANCE LIABILITIES (Detai119
INSURANCE LIABILITIES (Details - Narratives) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Insurance Liabilities Disclosure [Line Items] | ||||
Gross Loss Reserves Before Reinsurance and Discount Net of Subrogation | $ 12,800 | $ 12,600 | ||
Collateral Held For Deductible Recoverable Amounts | 9,700 | 9,600 | ||
Liability for Claims and Claims Adjustment Expense | 77,077 | 74,942 | $ 77,260 | $ 81,547 |
Net Loss Reserves | 61,545 | 60,603 | 61,612 | 64,316 |
Reinsurance Recoverables | $ 17,231 | |||
Discounting Of Loss Reserves [Abstract] | ||||
Loss Reserve Discount | $ 3,570 | 3,148 | ||
Tabular Discount Rate | 3.50% | |||
Workers Compensation Tabular Discount Amount | $ 932 | |||
Workers Compensation Non Tabular Discount Amount | 2,600 | |||
Increase (Decrease) in Loss Reserve Discount | $ 422 | 71 | (478) | |
New York | ||||
Discounting Of Loss Reserves [Abstract] | ||||
Non Tabular Discount Rate | 5.00% | |||
Pennsylvania | ||||
Discounting Of Loss Reserves [Abstract] | ||||
Non Tabular Discount Rate | 6.00% | |||
NICO [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Reinsurance Recoverables Aggregate Limit | $ 0 | |||
Reinsurance, Additional Recoveries | 0 | 0 | ||
U.S. Workers Compensation [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 1,920 | |||
Unlimited Losses Increase Decrease | 440 | |||
Loss Reserve Increase | 100 | |||
Discounting Of Loss Reserves [Abstract] | ||||
Increase (Decrease) in Loss Reserve Discount | 406 | |||
U.S. Workers Compensation [Member] | Primary Workers Compensation Line Of Business [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 113 | |||
U.S. Workers Compensation [Member] | Construction Line Of Business [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 140 | |||
U.S. Excess Casualty [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 1,058 | 1,400 | (106) | |
U.S. Excess Casualty [Member] | Commercial Auto Liability [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 250 | 411 | ||
U.S. Other Casualty | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 1,563 | |||
Loss Reserve Increase | 214 | |||
U.S. Other Casualty | Commercial Auto Liability [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 352 | 105 | 156 | |
U.S. Other Casualty | General Liability [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Unlimited Losses Increase Decrease | 754 | 172 | ||
Loss Reserve Increase | 100 | |||
U.S. Other Casualty | Medical Malpractice [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 428 | 202 | 57 | |
U.S. Financial Lines [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 306 | 502 | 160 | |
Europe Casualty and Financial Lines [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 355 | 139 | 24 | |
Europe Casualty and Financial Lines [Member] | Europe Financial Lines [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 225 | |||
Europe Casualty and Financial Lines [Member] | Europe Casualty [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 100 | |||
U.S. and Europe [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 402 | (128) | ||
U.S. and Europe [Member] | Automobile Habitational And Professional Liability [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 350 | |||
U.S. and Europe [Member] | Habitational Liability [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | (62) | |||
U.S. Europe and Japan [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | (114) | |||
U.S. Europe and Japan [Member] | International Accident And Health Business [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 114 | 47 | 89 | |
U.S. Europe and Japan [Member] | Natural Catastrophes [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 3 | 10 | 16 | |
U.S. Long Tail Insurance Lines [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 390 | |||
U.S. Long Tail Insurance Lines [Member] | Asbestos And Environmental 1986 And Prior [Member] | ||||
Insurance Liabilities Disclosure [Line Items] | ||||
Prior Year Development | 211 | |||
Loss Reserve Increase | (20) | 164 | ||
Loss Reserve Increase Gross | 106 | 13 | ||
Legacy Property And Casualty Run Off Insurance Lines [Member] | ||||
Discounting Of Loss Reserves [Abstract] | ||||
Loss Reserve Discount | 987 | 971 | ||
Increase (Decrease) in Loss Reserve Discount | $ 16 | $ 3 | $ (407) |
INSURANCE LIABILITIES (Detai120
INSURANCE LIABILITIES (Details - Discounting of Reserves) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Discounting of Reserves [Line Items] | ||||
Net loss reserve discount | $ 3,570 | $ 3,148 | ||
Tabular Discount Rate | 3.50% | |||
Workers Compensation Tabular Discount Amount | $ 932 | $ 932 | ||
Discount for asbestos | 0 | 0 | 7 | |
Workers Compensation Non Tabular Discount Amount | 2,600 | 2,600 | ||
Current accident year | 177 | 182 | $ 189 | |
Accretion and other adjustments to prior year discount | 351 | (336) | (270) | |
Effect of interest rate changes | (106) | 225 | (397) | |
Net reserve discount benefit (charge) | 422 | 71 | (478) | |
Increase Decrease In Loss Reserve Discount Transfer | 0 | 0 | 0 | |
U.S. Workers' compensation | 3,570 | 3,570 | 3,141 | |
Asbestos | 0 | 0 | 7 | |
US Liability And Financial Lines [Member] | ||||
Discounting of Reserves [Line Items] | ||||
Net loss reserve discount | 2,583 | 2,177 | ||
Discount for asbestos | 0 | 0 | 0 | |
Current accident year | 177 | 182 | 189 | |
Accretion and other adjustments to prior year discount | 287 | (262) | (35) | |
Effect of interest rate changes | (58) | 148 | (225) | |
Net reserve discount benefit (charge) | 406 | 68 | (71) | |
Increase Decrease In Loss Reserve Discount Transfer | 0 | (39) | 0 | |
U.S. Workers' compensation | 2,583 | 2,583 | 2,177 | |
Asbestos | 0 | 0 | 0 | |
Legacy Property And Casualty Run Off Insurance Lines [Member] | ||||
Discounting of Reserves [Line Items] | ||||
Net loss reserve discount | 987 | 971 | ||
Discount for asbestos | 0 | 0 | 7 | |
Current accident year | 0 | 0 | 0 | |
Accretion and other adjustments to prior year discount | 64 | (74) | (235) | |
Effect of interest rate changes | (48) | 77 | (172) | |
Net reserve discount benefit (charge) | 16 | 3 | (407) | |
Increase Decrease In Loss Reserve Discount Transfer | 0 | 39 | $ 0 | |
U.S. Workers' compensation | 987 | 987 | 964 | |
Asbestos | 0 | 0 | $ 7 | |
U.S. Workers Compensation [Member] | ||||
Discounting of Reserves [Line Items] | ||||
Net reserve discount benefit (charge) | 406 | |||
Asbestos And Environmental Related Claims [Member] | ||||
Discounting of Reserves [Line Items] | ||||
Net reserve discount benefit (charge) | 0 | |||
Property Casualty | ||||
Discounting of Reserves [Line Items] | ||||
Workers Compensation Tabular Discount Amount | 932 | 932 | ||
Discount for asbestos | 0 | 0 | ||
Workers Compensation Non Tabular Discount Amount | 2,600 | 2,600 | ||
Asbestos | $ 0 | $ 0 | ||
New York | ||||
Discounting of Reserves [Line Items] | ||||
Discount rate | 5.00% |
INSURANCE LIABILITIES (Detai121
INSURANCE LIABILITIES (Details - Future Policy Benefits) - Life | Dec. 31, 2016 |
Maximum | |
Assumptions for liability for future life policy benefits | |
Liability for Future Policy Benefits, Interest Rate | 14.00% |
Minimum | |
Assumptions for liability for future life policy benefits | |
Liability for Future Policy Benefits, Interest Rate | 0.10% |
INSURANCE LIABILITIES (Detai122
INSURANCE LIABILITIES (Details - Policyholder contract deposits) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 132,216 | $ 127,588 |
Fixed Annuities | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 51,278 | 52,103 |
Group Retirement | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 39,578 | 37,854 |
Institutional Markets | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 7,286 | 6,533 |
Annuities | Maximum | ||
Assumptions for liability for policyholder contract deposits | ||
Interest rate (as a percent) | 9.00% | |
Annuities | Minimum | ||
Assumptions for liability for policyholder contract deposits | ||
Interest rate (as a percent) | 0.20% | |
Variable and Index Annuities [Member] | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 16,934 | 13,927 |
Life | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 11,855 | 11,691 |
Assumptions for liability for policyholder contract deposits | ||
Percentage of gross insurance in force | 1.90% | |
Percentage of gross premiums and other consideration | 3.10% | |
Legacy portfolio [Member] | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 5,285 | $ 5,480 |
VARIABLE LIFE AND ANNUITY CO123
VARIABLE LIFE AND ANNUITY CONTRACTS (Details - Annuity contracts with guarantees were invested in separate account investment options) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | $ 76,269 | $ 72,220 |
Equity Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 42,266 | 39,284 |
Bonds Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 7,798 | 7,261 |
Balanced Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 25,365 | 24,849 |
Money Market Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | $ 840 | $ 826 |
VARIABLE LIFE AND ANNUITY CO124
VARIABLE LIFE AND ANNUITY CONTRACTS (Details - GMDB, GMIB, GMWB and GMAV) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | $ 4,802 | $ 4,048 | |
Embedded derivatives | |||
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | 3,100 | 2,300 | |
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 | 491 | 420 | $ 394 |
Reserve increase (decrease) | (32) | 127 | 93 |
Benefits paid | (57) | (56) | (67) |
Balance at the end of the period | 402 | 491 | $ 420 |
Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 41,000 | 38,000 | |
Net amount at risk | 834 | 640 | |
Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB) | Embedded derivatives | |||
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | 1,800 | 1,200 | |
Variable contract, net deposits plus a minimum return | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 91 | 87 | |
Net amount at risk | $ 1 | $ 2 | |
Average attained age of contract holders by product | 63 years | 63 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) | 0.00% | 0.00% | |
Variable annuity contract, highest contract value attained | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | $ 16 | $ 16 | |
Net amount at risk | $ 1 | $ 1 | |
Average attained age of contract holders by product | 68 years | 69 years | |
Variable annuity contract, highest contract value attained | Guaranteed minimum death benefits (GMDB) | Maximum | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Range of guaranteed minimum return rates (as a percent) | 4.50% | 4.50% |
DEBT (Details - Total debt outs
DEBT (Details - Total debt outstanding) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 6.50% | ||
Balance at the end of the period | $ 30,912 | $ 29,249 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 30,912 | 29,249 | |
2,017 | 2,161 | ||
2,018 | 2,056 | ||
2,019 | 1,095 | ||
2,020 | 1,488 | ||
2,021 | 1,952 | ||
Thereafter | 17,789 | ||
Borrowings of consolidated investments | 4,400 | ||
Long-term debt excluding borrowings of consolidated investments | 26,541 | ||
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | 1,065 | ||
Collateral posted | 4,500 | 3,000 | |
Debt Issuance Costs | 101 | 88 | |
Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 330 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 330 | ||
Collateralized Loans and Mortgages Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 735 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 735 | ||
AIGLH | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 642 | 704 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 642 | 704 | |
AIG | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 21,405 | 19,777 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 21,405 | 19,777 | |
AIG | Series AIGFP | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 31 | 31 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 31 | 31 | |
AIG | MIP | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 1,099 | 1,372 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 1,099 | 1,372 | |
Other Subsidiaries | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 8,865 | 8,768 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 8,865 | 8,768 | |
Notes and bonds payable | AIG | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 19,432 | 17,047 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 19,432 | 17,047 | |
Junior subordinated debt | AIG | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 843 | 1,327 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 843 | 1,327 | |
Other subsidiaries notes, bonds, loans and mortgages payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 735 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 735 | ||
2,017 | 735 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
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 | 735 | ||
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 | 0 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 0 | ||
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 | 735 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 735 | ||
Debt issued or guaranteed | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 25,806 | 24,260 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 25,806 | 24,260 | |
2,017 | 1,426 | ||
2,018 | 2,056 | ||
2,019 | 1,095 | ||
2,020 | 1,488 | ||
2,021 | 1,952 | ||
Thereafter | 17,789 | ||
Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 21,247 | 19,184 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 21,247 | 19,184 | |
2,017 | 167 | ||
2,018 | 1,106 | ||
2,019 | 997 | ||
2,020 | 1,456 | ||
2,021 | 1,710 | ||
Thereafter | 15,811 | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG | |||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | 330 | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG | Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 330 | ||
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 330 | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG | Collateralized Loans and Mortgages 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 | ||
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 19,432 | 17,047 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 19,432 | 17,047 | |
2,017 | 167 | ||
2,018 | 1,106 | ||
2,019 | 997 | ||
2,020 | 1,342 | ||
2,021 | 1,494 | ||
Thereafter | $ 14,326 | ||
Debt Instrument, Maturity, Start year | 2,017 | ||
Debt Instrument, Maturity, End Year | 2,097 | ||
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 8.13% | ||
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.99% | ||
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | AIGLH | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | $ 281 | 284 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 281 | 284 | |
Thereafter | $ 281 | ||
Debt Instrument, Maturity, Start year | 2,025 | ||
Debt Instrument, Maturity, End Year | 2,029 | ||
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | AIGLH | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 7.50% | ||
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | AIGLH | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 6.63% | ||
Uncollateralized Notes/Bonds/Loans Payable | Subordinated debt | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.00% | ||
Balance at the end of the period | $ 0 | 0 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 0 | 0 | |
2,017 | 0 | ||
2,018 | 0 | ||
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 843 | 1,327 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 843 | 1,327 | |
Thereafter | $ 843 | ||
Debt Instrument, Maturity, Start year | 2,037 | ||
Debt Instrument, Maturity, End Year | 2,058 | ||
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 8.63% | ||
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 4.88% | ||
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | AIGLH | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | $ 361 | 420 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 361 | 420 | |
Thereafter | $ 361 | ||
Debt Instrument, Maturity, Start year | 2,030 | ||
Debt Instrument, Maturity, End Year | 2,046 | ||
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | AIGLH | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 8.50% | ||
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | AIGLH | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 7.57% | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG Japan Holdings Kabushiki Kaisha | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | $ 330 | 106 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 330 | 106 | |
2,020 | 114 | ||
2,021 | $ 216 | ||
Debt Instrument, Maturity, Start year | 2,020 | ||
Debt Instrument, Maturity, End Year | 2,021 | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG Japan Holdings Kabushiki Kaisha | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.44% | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG Japan Holdings Kabushiki Kaisha | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.28% | ||
Borrowings supported by assets | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | $ 4,559 | 5,076 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 4,559 | 5,076 | |
2,017 | 1,259 | ||
2,018 | 950 | ||
2,019 | 98 | ||
2,020 | 32 | ||
2,021 | 242 | ||
Thereafter | 1,978 | ||
Collateral posted | 2,200 | 2,400 | |
Borrowings supported by assets | Notes and bonds payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 494 | 394 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 494 | 394 | |
2,017 | 311 | ||
2,018 | 116 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2,021 | 0 | ||
Thereafter | $ 67 | ||
Debt Instrument, Maturity, Start year | 2,017 | ||
Debt Instrument, Maturity, End Year | 2,047 | ||
Borrowings supported by assets | Notes and bonds payable | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 10.37% | ||
Borrowings supported by assets | Notes and bonds payable | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.51% | ||
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | $ 32 | 34 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 32 | 34 | |
2,017 | 10 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2,021 | 0 | ||
Thereafter | $ 22 | ||
Debt Instrument, Maturity, Start year | 2,017 | ||
Debt Instrument, Maturity, End Year | 2,047 | ||
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 7.50% | ||
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.94% | ||
Borrowings supported by assets | MIP notes payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | $ 1,099 | 1,372 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 1,099 | 1,372 | |
2,017 | 751 | ||
2,018 | 348 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2,021 | 0 | ||
Thereafter | $ 0 | ||
Debt Instrument, Maturity, Start year | 2,017 | ||
Debt Instrument, Maturity, End Year | 2,018 | ||
Borrowings supported by assets | MIP notes payable | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 8.59% | ||
Borrowings supported by assets | MIP notes payable | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 2.28% | ||
Borrowings supported by assets | GIAs | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 7.62% | ||
Balance at the end of the period | $ 2,934 | 3,276 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 2,934 | 3,276 | |
2,017 | 187 | ||
2,018 | 486 | ||
2,019 | 98 | ||
2,020 | 32 | ||
2,021 | 242 | ||
Thereafter | $ 1,889 | ||
Debt Instrument, Maturity, Start year | 2,017 | ||
Debt Instrument, Maturity, End Year | 2,047 | ||
Borrowings supported by assets | GIAs | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 7.62% | ||
Borrowings supported by assets | GIAs | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.50% | ||
Debt not guaranteed | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | $ 5,106 | 4,989 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 5,106 | 4,989 | |
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 735 | 2 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | $ 735 | 2 | |
Debt Instrument, Maturity, End Year | 2,017 | ||
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 1.15% | ||
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.73% | ||
Debt not guaranteed | Debt of consolidated investments | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | $ 4,371 | 4,987 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | $ 4,371 | 4,987 | |
Debt Instrument, Maturity, Start year | 2,017 | ||
Debt Instrument, Maturity, End Year | 2,062 | ||
Debt not guaranteed | Debt of consolidated investments | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 9.31% | ||
Debt not guaranteed | Debt of consolidated investments | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.00% | ||
Debt not guaranteed | Debt of consolidated investments | Real Estate and Investment Funds [Member] | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | $ 1,900 | 2,400 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 1,900 | 2,400 | |
Debt not guaranteed | Debt of consolidated investments | Affordable Housing Partnership [Member] | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 1,700 | 1,500 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | 1,700 | 1,500 | |
Debt not guaranteed | Debt of consolidated investments | Other | |||
Debt Instrument [Line Items] | |||
Balance at the end of the period | 771 | 1,000 | |
Maturities of long-term debt, excluding borrowings of consolidated investments | |||
Total | $ 771 | $ 1,000 |
DEBT (Details - Junior subordin
DEBT (Details - Junior subordinated debentures) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 6.50% | |||
Aggregate principal amount of debt redeemed | $ 4,082 | $ 9,805 | $ 16,160 |
DEBT (Details - AIGLH Junior su
DEBT (Details - AIGLH Junior subordinated debentures) - USD ($) $ in Millions | Jun. 30, 2015 | Jul. 11, 2013 |
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 6.50% | |
Borrowings supported by assets | 8.5 percent Junior subordinated debentures due July 2030 | AIGLH | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures liquidation value | $ 113 | |
Borrowings supported by assets | 8.125 percent Junior subordinated debentures due March 2046 | AIGLH | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures liquidation value | 211 | |
Borrowings supported by assets | 7.57 percent Junior subordinated debentures due December 2045 | AIGLH | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures liquidation value | $ 37 |
DEBT (Details - Credit faciliti
DEBT (Details - Credit facilities) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Schedule of Debt Instruments [Line Items] | |
Letter of credit outstanding | $ 140 |
Contingent liquidity facility | $ 500 |
5-Year Syndicated Facility | |
Schedule of Debt Instruments [Line Items] | |
Line of credit facilities, term of credit agreements | 5 years |
Maximum borrowing capacity | $ 4,500 |
Remaining borrowing capacity | 4,500 |
Increased commitment to Five-Year Facility | $ 500 |
Debt Instrument, Maturity Date | November 2,020 |
Debt Instrument Effective Date | Nov. 5, 2015 |
CONTINGENCIES, COMMITMENTS A129
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Loss Contingencies) $ in Millions | Jun. 15, 2015USD ($) | Oct. 22, 2014USD ($) | Sep. 16, 2013item | Mar. 11, 2013class | Nov. 29, 2012USD ($)item | Nov. 21, 2011 | Dec. 17, 2010USD ($)item | Jan. 31, 2009complaint | Dec. 31, 2016USD ($)complaint | Dec. 31, 2015USD ($) | Feb. 09, 2015complaint |
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Number of separate proceedings filed | complaint | 2 | ||||||||||
Number of funds that are plaintiffs in similar actions | complaint | 11 | ||||||||||
Number of states participating in the accident and health products examination | item | 50 | ||||||||||
Number of actions brought against AIG | complaint | 9 | ||||||||||
Number of cases that have been settled | complaint | 8 | ||||||||||
Increase (decrease) in estimated litigation liability | $ 14 | $ 25 | |||||||||
Other Commitments | |||||||||||
Other Commitments | $ 3,200 | ||||||||||
Chartis U.S. | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Settlement agreement, number of jurisdictions | item | 50 | ||||||||||
Civil penalty paid | $ 50 | ||||||||||
AIG | Regulatory fines and penalties | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Litigation Settlement, Amount | $ 100 | ||||||||||
AIG | Outstanding premium taxes and assessments | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Litigation Settlement, Amount | 46.5 | ||||||||||
AIG | Contingent fines | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Litigation Settlement, Amount | $ 150 | ||||||||||
Consolidated 2008 Securities Litigation | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Number of separate proceedings filed | complaint | 8 | ||||||||||
Payment for legal settlement | $ 960 | ||||||||||
Starr International Litigation | |||||||||||
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS | |||||||||||
Number of separate proceedings filed | class | 2 | ||||||||||
Damages claimed | $ 40,000 | ||||||||||
Percentage of ownership in AIG received by Department of the Treasury | 80.00% | ||||||||||
Number of shareholders who have submitted timely and valid requests to opt into the class | item | 286,908 |
CONTINGENCIES, COMMITMENTS A130
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Long term purchase commitments) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Future minimum lease payments under operating leases | |||
2,017 | $ 295 | ||
2,018 | 222 | ||
2,019 | 167 | ||
2,020 | 135 | ||
2,021 | 94 | ||
Remaining years after 2021 | 185 | ||
Total | 1,098 | ||
Rent expense | 331 | $ 327 | $ 471 |
Other Commitments | |||
Other Commitments | 3,200 | ||
Held for sale [Member] | |||
Future minimum lease payments under operating leases | |||
Rent expense | $ 0 |
CONTINGENCIES, COMMITMENTS A131
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Guarantor Obligations) $ in Millions | Dec. 31, 2016USD ($) |
Guarantor Obligations [Line Items] | |
Amount outstanding under standby letters of credit at end of period | $ 140 |
EQUITY (Details - Shares Outsta
EQUITY (Details - Shares Outstanding) - USD ($) | Dec. 22, 2016 | Sep. 29, 2016 | Jun. 27, 2016 | Mar. 28, 2016 | Dec. 21, 2015 | Sep. 28, 2015 | Jun. 25, 2015 | Mar. 26, 2015 | Dec. 18, 2014 | Sep. 25, 2014 | Jun. 24, 2014 | Mar. 25, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 14, 2017 | Nov. 02, 2016 |
The following table presents a roll forward of outstanding shares: | |||||||||||||||||
Shares, beginning of year | (712,754,875) | ||||||||||||||||
Shares, beginning of year | 1,906,671,492 | ||||||||||||||||
Shares, beginning of year | 1,193,916,617 | 1,375,926,971 | 1,464,063,323 | ||||||||||||||
Issuances (in shares) | 2,069,110 | 371,806 | 41,551 | ||||||||||||||
Shares repurchased | (200,649,886) | (182,382,160) | (88,177,903) | ||||||||||||||
Shares, end of period | (911,335,651) | (712,754,875) | |||||||||||||||
Shares, end of period | 1,906,671,492 | 1,906,671,492 | |||||||||||||||
Shares, end of period | 995,335,841 | 1,193,916,617 | 1,375,926,971 | ||||||||||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | |||||||||||||||||
Dividend paid (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.28 | $ 0.28 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | |||||
Date of Shareholders of Record | Dec. 8, 2016 | Sep. 15, 2016 | Jun. 13, 2016 | Mar. 14, 2016 | Dec. 7, 2015 | Sep. 14, 2015 | Jun. 11, 2015 | Mar. 12, 2015 | Dec. 4, 2014 | Sep. 11, 2014 | Jun. 10, 2014 | Mar. 11, 2014 | |||||
Authorized amount of common Stock share repurchase | $ 3,000,000,000 | ||||||||||||||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 2,500,000,000 | $ 4,400,000,000 | |||||||||||||||
Shares repurchased (in shares) | 200,649,886 | 182,382,160 | 88,177,903 | ||||||||||||||
Payments for Repurchase of Common Stock | $ 11,460,000,000 | $ 10,691,000,000 | $ 4,902,000,000 | ||||||||||||||
Amount paid to purchase warrants | $ 309,000,000 | $ 0 | $ 0 | ||||||||||||||
Warrants repurchased | 17,000,000 | 0 | 0 | ||||||||||||||
Subsequent event | |||||||||||||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | |||||||||||||||||
Date of Shareholders of Record | Mar. 15, 2017 | ||||||||||||||||
Authorized amount of common Stock share repurchase | $ 3,500,000,000 | ||||||||||||||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 4,700,000,000 | ||||||||||||||||
Common Stock Issued | |||||||||||||||||
The following table presents a roll forward of outstanding shares: | |||||||||||||||||
Shares, beginning of year | 1,906,671,492 | 1,906,671,492 | 1,906,645,689 | ||||||||||||||
Issuances (in shares) | 0 | 0 | 25,803 | ||||||||||||||
Shares, end of period | 1,906,671,492 | 1,906,671,492 | 1,906,671,492 | ||||||||||||||
Treasury Stock | |||||||||||||||||
The following table presents a roll forward of outstanding shares: | |||||||||||||||||
Shares, beginning of year | 712,754,875 | 530,744,521 | 442,582,366 | ||||||||||||||
Issuances (in shares) | 2,069,110 | (371,806) | (15,748) | ||||||||||||||
Shares repurchased | (200,649,886) | (182,382,160) | (88,177,903) | ||||||||||||||
Shares, end of period | 911,335,651 | 712,754,875 | 530,744,521 | ||||||||||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | |||||||||||||||||
Shares repurchased (in shares) | 200,649,886 | 182,382,160 | 88,177,903 |
EQUITY (Details - Share repurch
EQUITY (Details - Share repurchases) - Accelerated Share Repurchase Agreement [Member] shares in Millions, $ in Billions | 1 Months Ended | 12 Months Ended |
Jan. 31, 2015shares | Dec. 31, 2014USD ($)itemshares | |
Rollforward of preferred stock | ||
Amount paid to financial institution | $ | $ 3.1 | |
Common Stock | ||
Rollforward of preferred stock | ||
Number of accelerated stock repurchase (ASR) agreements with third-party financial institutions | item | 5 | |
Percentage of share repurchased during share repurchase agreement | 70.00% | |
Number of shares received from financial institution | 53 | |
Partial receipt of shares under an ASR agreement | 9.2 | |
Additional shares received from financial institution | 3,500 |
EQUITY (Details - Rollforward o
EQUITY (Details - Rollforward of Accumulated other comprehensive income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | $ 2,537 | $ 10,617 | $ 6,360 |
Change in unrealized appreciation (depreciation) of investments | 605 | (11,007) | 7,720 |
Change in deferred acquisition costs adjustment and other | 267 | 1,119 | (427) |
Change in future policy benefits | (676) | 1,204 | (1,246) |
Changes in foreign currency translation adjustments | 93 | (1,129) | (833) |
Net actuarial gain (loss) | (151) | 413 | (815) |
Prior service (cost) credit | (22) | (239) | (49) |
Deferred tax asset (liability) | 577 | 1,553 | (93) |
Other Comprehensive Income (Loss) | 693 | (8,086) | 4,257 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment | 250 | (1,100) | (832) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges | 0 | 0 | 0 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment | 126 | (123) | 556 |
Noncontrolling interests | 0 | (6) | |
Balance, end of period, net of tax | 3,230 | 2,537 | 10,617 |
Accumulated Other Comprehensive Income | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Other Comprehensive Income (Loss) | 693 | (8,080) | 4,257 |
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 | 696 | 1,043 | 936 |
Change in unrealized appreciation (depreciation) of investments | (326) | (488) | 156 |
Change in deferred acquisition costs adjustment and other | (19) | (146) | 68 |
Change in future policy benefits | 0 | 92 | (133) |
Deferred tax asset (liability) | 75 | 195 | 16 |
Other Comprehensive Income (Loss) | (270) | (347) | 107 |
Balance, end of period, net of tax | 426 | 696 | 1,043 |
Unrealized Appreciation (Depreciation) of All Other Investments | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | 5,566 | 12,327 | 6,789 |
Change in unrealized appreciation (depreciation) of investments | 931 | (10,519) | 7,564 |
Change in deferred acquisition costs adjustment and other | 286 | 1,265 | (495) |
Change in future policy benefits | (676) | 1,112 | (1,113) |
Deferred tax asset (liability) | 298 | 1,380 | (418) |
Other Comprehensive Income (Loss) | 839 | (6,762) | 5,538 |
Noncontrolling interests | 0 | (1) | 0 |
Balance, end of period, net of tax | 6,405 | 5,566 | 12,327 |
Foreign Currency Translation Adjustments | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | (2,879) | (1,784) | (952) |
Changes in foreign currency translation adjustments | 93 | (1,129) | (833) |
Deferred tax asset (liability) | 157 | 29 | 1 |
Other Comprehensive Income (Loss) | 250 | (1,100) | (832) |
Noncontrolling interests | 0 | (5) | 0 |
Balance, end of period, net of tax | (2,629) | (2,879) | (1,784) |
Retirement Plan Liabilities Adjustment | |||
A rollforward of Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning of period, net of tax | (846) | (969) | (413) |
Net actuarial gain (loss) | (151) | 413 | (815) |
Prior service (cost) credit | (22) | (239) | (49) |
Deferred tax asset (liability) | 47 | (51) | 308 |
Other Comprehensive Income (Loss) | (126) | 123 | (556) |
Balance, end of period, net of tax | $ (972) | $ (846) | $ (969) |
EQUITY (Details - Other compreh
EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | $ 1,296 | $ (8,383) | $ 4,908 |
Less: Reclassification adjustments included in net income | 1,180 | 1,256 | 558 |
Total other comprehensive income (loss), before income tax expense (benefit) | 116 | (9,639) | 4,350 |
Less: Income tax expense (benefit) | (577) | (1,553) | 93 |
Other comprehensive income (loss) | 693 | (8,086) | 4,257 |
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Recognized | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | (222) | (471) | 119 |
Less: Reclassification adjustments included in net income | 123 | 71 | 28 |
Total other comprehensive income (loss), before income tax expense (benefit) | (345) | (542) | 91 |
Less: Income tax expense (benefit) | (75) | (195) | (16) |
Other comprehensive income (loss) | (270) | (347) | 107 |
Unrealized Appreciation (Depreciation) of All Other Investments | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 1,769 | (7,068) | 6,488 |
Less: Reclassification adjustments included in net income | 1,228 | 1,074 | 532 |
Total other comprehensive income (loss), before income tax expense (benefit) | 541 | (8,142) | 5,956 |
Less: Income tax expense (benefit) | (298) | (1,380) | 418 |
Other comprehensive income (loss) | 839 | (6,762) | 5,538 |
Accumulated Translation Adjustment [Member] | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 93 | (1,129) | (833) |
Less: Reclassification adjustments included in net income | 0 | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | 93 | (1,129) | (833) |
Less: Income tax expense (benefit) | (157) | (29) | (1) |
Other comprehensive income (loss) | 250 | (1,100) | (832) |
Retirement Plan Liabilities Adjustment | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | (344) | 285 | (866) |
Less: Reclassification adjustments included in net income | (171) | 111 | (2) |
Total other comprehensive income (loss), before income tax expense (benefit) | (173) | 174 | (864) |
Less: Income tax expense (benefit) | (47) | 51 | (308) |
Other comprehensive income (loss) | $ (126) | $ 123 | $ (556) |
EQUITY (Details - Reclassificat
EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other realized capital gains (losses) | $ (1,457) | $ 1,367 | $ 956 | ||||||||
Amortization of deferred acquisition costs | 4,521 | 5,236 | 5,330 | ||||||||
Policyholder benefits and losses incurred | 32,437 | 31,345 | 28,281 | ||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 1,180 | 1,256 | 558 | ||||||||
Income from continuing operations before income tax expense (benefit) | $ (3,455) | $ 737 | $ 2,858 | $ (214) | $ (2,932) | $ (115) | $ 2,552 | $ 3,776 | (74) | 3,281 | 10,501 |
Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income from continuing operations before income tax expense (benefit) | 1,180 | 1,256 | 558 | ||||||||
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 123 | 71 | 28 | ||||||||
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 (losses) | (123) | (71) | (28) | ||||||||
Income from continuing operations before income tax expense (benefit) | 123 | 71 | 28 | ||||||||
Unrealized appreciation (depreciation) of all other investments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 1,228 | 1,074 | 532 | ||||||||
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 (losses) | (935) | (1,054) | (669) | ||||||||
Amortization of deferred acquisition costs | 293 | 3 | (20) | ||||||||
Policyholder benefits and losses incurred | 0 | 17 | (117) | ||||||||
Income from continuing operations before income tax expense (benefit) | 1,228 | 1,074 | 532 | ||||||||
Change in retirement plan liabilities adjustment | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | (171) | 111 | (2) | ||||||||
Change in retirement plan liabilities adjustment | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | (171) | 111 | (2) | ||||||||
Prior-Service Costs | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | 15 | 214 | 47 | ||||||||
Actuarial Gains (Losses) | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification From Accumulated Other Comprehensive Income Current Period Before Tax | $ (186) | $ (103) | $ (49) |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator for EPS: | |||||||||||
Income (Loss) from Continuing Operations | $ (259) | $ 2,222 | $ 7,574 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | $ 535 | $ (26) | $ 11 | $ (20) | $ (8) | $ 34 | $ (9) | $ 9 | 500 | 26 | (5) |
Net income (loss) attributable to AIG common shareholders from continuing operations | (759) | 2,196 | 7,579 | ||||||||
Income (loss) from discontinued operations, net of income tax | $ (36) | $ 3 | $ (10) | $ (47) | $ 0 | $ (17) | $ 16 | $ 1 | (90) | 0 | (50) |
Net income (loss) attributable to AIG common shareholders | $ (849) | $ 2,196 | $ 7,529 | ||||||||
Denominator for EPS: | |||||||||||
Weighted average shares outstanding - basic | 1,023,886,592 | 1,071,295,892 | 1,113,587,927 | 1,156,548,459 | 1,226,880,632 | 1,279,072,748 | 1,329,157,366 | 1,365,951,690 | 1,091,085,131 | 1,299,825,350 | 1,427,959,799 |
Dilutive shares | 0 | 34,639,533 | 19,593,853 | ||||||||
Weighted average shares outstanding - diluted | 1,023,886,592 | 1,102,400,770 | 1,140,045,973 | 1,156,548,459 | 1,226,880,632 | 1,279,072,748 | 1,365,390,431 | 1,386,263,549 | 1,091,085,131 | 1,334,464,883 | 1,447,553,652 |
Basic: | |||||||||||
Income (loss) from continuing operations | $ (2.93) | $ 0.43 | $ 1.73 | $ (0.12) | $ (1.5) | $ (0.17) | $ 1.34 | $ 1.81 | $ (0.7) | $ 1.69 | $ 5.31 |
Income (loss) from discontinued operations | (0.03) | 0 | (0.01) | (0.04) | 0 | (0.01) | 0.01 | 0 | (0.08) | 0 | (0.04) |
Net income (loss) attributable to AIG | (0.78) | 1.69 | 5.27 | ||||||||
Diluted: | |||||||||||
Income (loss) from continuing operations | (2.93) | 0.42 | 1.69 | (0.12) | (1.5) | (0.17) | 1.31 | 1.78 | (0.7) | 1.65 | 5.24 |
Income (loss) from discontinued operations | $ (0.03) | $ 0 | $ (0.01) | $ (0.04) | $ 0 | $ (0.01) | $ 0.01 | $ 0 | (0.08) | 0 | (0.04) |
Net Income (loss) attributable to AIG | $ (0.78) | $ 1.65 | $ 5.2 | ||||||||
Number of shares, warrants, and options excluded from diluted shares outstanding because the effect would have been anti-dilutive | 200,000 | 200,000 | 300,000 | ||||||||
Dilutive Shares Excluded From Computation Of Diluted Earnings Per Share | 30,326,772 |
STATUTORY FINANCIAL DATA AND138
STATUTORY FINANCIAL DATA AND RESTRICTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory capital and surplus and net income (loss) | |||
Increase (decrease) in the previously reported amount of statutory net income as a result of the finalization of statutory filings | $ 146 | ||
Increase (decrease) in the previously reported amount of statutory surplus as a result of the finalization of statutory filings | 3,200 | ||
Subsidiary Dividend Restrictions | |||
Statutory capital and surplus of consolidated insurance subsidiaries companies restricted from transfer to parent | $ 45,100 | ||
Eaglestone | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | (3.4) | ||
Statutory capital and surplus | 1,900 | ||
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% | ||
Property Casualty Insurance Companies | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | $ (1,545) | 2,038 | $ 4,517 |
Statutory capital and surplus | 34,508 | 38,951 | |
Aggregate minimum required statutory capital and surplus | 12,745 | 14,327 | |
Statutory surplus and net income (loss) | |||
Capital Contribution To Affiliates | 2,900 | ||
Permitted practice | 724 | ||
Property Casualty Insurance Companies | Domestic | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | (229) | 1,444 | 3,265 |
Statutory capital and surplus | 21,819 | 25,956 | |
Aggregate minimum required statutory capital and surplus | 5,390 | 7,119 | |
Property Casualty Insurance Companies | Foreign | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | (1,316) | 594 | 1,252 |
Statutory capital and surplus | 12,689 | 12,995 | |
Aggregate minimum required statutory capital and surplus | 7,355 | 7,208 | |
Life insurance companies | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 2,299 | 2,195 | 2,856 |
Statutory capital and surplus | 12,853 | 8,801 | |
Aggregate minimum required statutory capital and surplus | 3,341 | 3,838 | |
Statutory surplus and net income (loss) | |||
Permitted practice | 645 | (366) | |
Life insurance companies | Domestic | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 2,252 | 2,200 | 2,865 |
Statutory capital and surplus | 12,363 | 8,379 | |
Aggregate minimum required statutory capital and surplus | 3,107 | 3,659 | |
Life insurance companies | Foreign | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 47 | (5) | $ (9) |
Statutory capital and surplus | 490 | 422 | |
Aggregate minimum required statutory capital and surplus | $ 234 | $ 179 |
SHARE-BASED AND OTHER COMPEN139
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Share based compensation expense) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
SHARE-BASED AND OTHER COMPENSATION PLANS | |||
Share-based compensation expense - pre-tax | $ 237 | $ 365 | $ 349 |
Share-based compensation expense - after tax | 154 | 237 | 227 |
Pre tax share-based compensation expense attributed to unsettled liability-classified awards | $ (3) | $ 19 | $ 86 |
Share price (in dollars per share) | $ 65.31 | $ 61.97 | $ 56.01 |
Vested stock-settled awards issued to retirement eligible employees | $ 105 | $ 147 | $ 120 |
SHARE-BASED AND OTHER COMPEN140
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Employee Plans, Share-settled Awards - assumptions used to estimate the fair value of PSUs) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)itemshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ | $ 237 | $ 365 | $ 349 | |
Performance share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weight used to calculate performance measure (as a percent) | 75.00% | 25.00% | 50.00% | |
Assumptions used to estimate the fair value of PSUs based on AIG's TSR | ||||
Expected dividend yield (as a percent) | 2.17% | 1.78% | 1.13% | |
Expected volatility (as a percent) | 24.55% | 22.71% | 23.66% | |
Risk-free interest rate (as a percent) | 1.30% | 1.01% | 0.76% | |
Deferred stock units (DSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted under the plans | 41,974 | 32,342 | 28,477 | |
Compensation expense | $ | $ 2.4 | $ 1.9 | $ 1.5 | |
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 | 43,510,168 | |||
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 | item | 3 | |||
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 | |||
Reduction in the number of shares available for grants | 1 | |||
SICO Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Completion of age of the employee after which the awards can be vested | 65 years | |||
Payments for various benefits provided under the plan | $ | $ 0 |
SHARE-BASED AND OTHER COMPEN141
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Share-settled Awards - Outstanding share-settled awards) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
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 | $ | $ 4 |
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 | $ | $ 163 |
Weighted-Average Period | 1 year 3 months 4 days |
Expected Period | 4 years |
RSUs | |
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 | $ | $ 0 |
SICO Plans | |
Change in number of shares | |
Unvested at the end of the period (in shares) | 12,937 |
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |
Weighted-Average Period | 5 years 29 days |
Expected Period | 21 years |
2013 LTI | PSUs | |
Change in number of shares | |
Unvested at the beginning of the period (in shares) | 2,250,109 |
Granted (in shares) | 3,471,850 |
Vested (in shares) | (3,974,941) |
Forfeited (in shares) | (165,114) |
Unvested at the end of the period (in shares) | 1,581,904 |
Change in Weighted Average Grant-Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 37.07 |
Granted (in dollars per share) | $ / shares | 36.55 |
Vested (in dollars per share) | $ / shares | 36.2 |
Forfeited (in dollars per share) | $ / shares | 37.71 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 38.03 |
2014 LTI | PSUs | |
Change in number of shares | |
Unvested at the beginning of the period (in shares) | 2,559,359 |
Granted (in shares) | 0 |
Vested (in shares) | (652,198) |
Forfeited (in shares) | (174,545) |
Unvested at the end of the period (in shares) | 1,732,616 |
Change in Weighted Average Grant-Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 48.82 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 48.65 |
Forfeited (in dollars per share) | $ / shares | 48.81 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 48.88 |
2015 LTI | PSUs | |
Change in number of shares | |
Unvested at the beginning of the period (in shares) | 3,046,958 |
Granted (in shares) | 4,704 |
Vested (in shares) | (681,396) |
Forfeited (in shares) | (193,711) |
Unvested at the end of the period (in shares) | 2,176,555 |
Change in Weighted Average Grant-Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 55.08 |
Granted (in dollars per share) | $ / shares | 64.23 |
Vested (in dollars per share) | $ / shares | 54.03 |
Forfeited (in dollars per share) | $ / shares | 54.14 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 55.52 |
2016 LTI | PSUs | |
Change in number of shares | |
Unvested at the beginning of the period (in shares) | 0 |
Granted (in shares) | 5,092,452 |
Vested (in shares) | (2,315,667) |
Forfeited (in shares) | (188,187) |
Unvested at the end of the period (in shares) | 2,588,598 |
Change in Weighted Average Grant-Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 50.77 |
Vested (in dollars per share) | $ / shares | 50.42 |
Forfeited (in dollars per share) | $ / shares | 50.26 |
Unvested at the end of the period (in dollars per share) | $ / shares | $ 51.12 |
SHARE-BASED AND OTHER COMPEN142
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Roll forward of stock option activity) - Stock Options $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)shares | |
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 |
SHARE-BASED AND OTHER COMPEN143
SHARE-BASED AND OTHER COMPENSATION PLANS (Details - Cash-settled Awards) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)itemshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash paid to settle awards | $ 105 | $ 147 | $ 120 |
Compensation expense | 237 | 365 | 349 |
Long Term Incentive Plans 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 0 | 19 | 57 |
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 | item | 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 | item | 0 | ||
Stock Salary Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash paid to settle awards | $ 29 | 101 | 155 |
Compensation expense | $ 0 | $ 2 | $ 7 |
Number of vested but unsettled RSUs | shares | 0 | ||
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 |
SHARE-BASED AND OTHER COMPEN144
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 ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in SARs (based on target amounts) as well as the related expenses | |||
Compensation expense | $ 237 | $ 365 | $ 349 |
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 | 4 | ||
RSUs | |||
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 | $ 0 |
EMPLOYEE BENEFITS (Details - Pe
EMPLOYEE BENEFITS (Details - Pension and Postretirement Plans) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in plan assets: | |||||
AIG contributions | $ 236 | $ 166 | $ 156 | ||
Pensions | Change in method for pension plans - spot rate | |||||
Change in Accounting Estimate [Abstract] | |||||
Pension plan expense | 0 | ||||
Reduction in pension expense due to change in accounting estimate | 0 | ||||
U.S. Pension Plans | |||||
Components of net periodic benefit cost: | |||||
Service cost | 19 | 192 | 173 | ||
Interest cost | 181 | 220 | 228 | ||
Expected return on assets | (292) | (295) | (288) | ||
Amortization of prior service (credit) cost | 0 | (22) | (33) | ||
Amortization of net (gain) loss | 25 | 92 | 42 | ||
Curtailment (gain) loss | 0 | (179) | 0 | ||
Net periodic benefit cost (credit) | 82 | 8 | 122 | ||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 5,324 | 5,769 | |||
Service cost | 19 | 192 | 173 | ||
Interest cost | 181 | 220 | 228 | ||
Actuarial (gain) loss | 118 | (423) | |||
Plan amendment | 0 | (132) | |||
Curtailments | 0 | 0 | |||
Settlements | (338) | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Projected benefit obligation, end of year | 4,948 | 5,324 | 5,769 | ||
Change in plan assets: | |||||
Fair value of plan assets, beginning of year | 4,359 | 4,111 | |||
Actual return on plan assets, net of expenses | 154 | (8) | |||
AIG contributions | 24 | 558 | |||
Benefits paid: | |||||
Settlements | (338) | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Fair value of plan assets, end of year | 3,843 | 4,359 | 4,111 | ||
Funded status, end of year | $ (1,105) | $ (965) | |||
Amounts recognized in the consolidated balance sheet: | |||||
Assets | 0 | 0 | |||
Liabilities | (1,105) | (965) | |||
Total amounts recognized | (1,105) | (965) | |||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Net gain (loss) | (1,405) | (1,324) | |||
Prior service (cost) credit | 0 | 0 | |||
Total other comprehensive income (loss), before income tax expense (benefit) | (1,405) | (1,324) | |||
Projected benefit obligation | 5,324 | 5,324 | 5,769 | 4,948 | 5,324 |
U.S. Pension Plans | American International Group Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | (24) | (17) | |||
U.S. Pension Plans | Plan Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | (332) | (285) | |||
U.S. Pension Plans | Non Qualified Pension Plan [Member] | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 299 | ||||
Projected benefit obligation, end of year | 278 | 299 | |||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Projected benefit obligation | $ 299 | 299 | 278 | 299 | |
U.S. Pension Plans | Minimum | |||||
Components of net periodic benefit cost: | |||||
Period of service after which plan gets vested | 0 years | ||||
Non U.S. Pension Plans | |||||
Components of net periodic benefit cost: | |||||
Service cost | $ 31 | 43 | 42 | ||
Interest cost | 21 | 25 | 29 | ||
Expected return on assets | (26) | (25) | (22) | ||
Amortization of prior service (credit) cost | 0 | (2) | (3) | ||
Amortization of net (gain) loss | 7 | 9 | 7 | ||
Curtailment (gain) loss | (6) | (1) | 1 | ||
Net periodic benefit cost (credit) | 29 | 50 | 54 | ||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 1,146 | 1,099 | |||
Service cost | 31 | 43 | 42 | ||
Interest cost | 21 | 25 | 29 | ||
Actuarial (gain) loss | 98 | (16) | |||
Plan amendment | 1 | 24 | |||
Curtailments | (2) | 0 | |||
Settlements | (16) | (15) | |||
Foreign exchange effect | 19 | (67) | |||
Acquisitions | 0 | 72 | |||
Other | (5) | 14 | |||
Projected benefit obligation, end of year | 1,246 | 1,146 | 1,099 | ||
Change in plan assets: | |||||
Fair value of plan assets, beginning of year | 773 | 708 | |||
Actual return on plan assets, net of expenses | 19 | 47 | |||
AIG contributions | 71 | 62 | |||
Benefits paid: | |||||
Settlements | (16) | (15) | |||
Foreign exchange effect | 6 | (44) | |||
Other | 1 | 13 | |||
Fair value of plan assets, end of year | 803 | 773 | 708 | ||
Dispositions | (4) | 0 | |||
Acquisitions | 0 | 35 | |||
Funded status, end of year | (443) | (373) | |||
Amounts recognized in the consolidated balance sheet: | |||||
Assets | 53 | 46 | |||
Liabilities | (496) | (419) | |||
Total amounts recognized | (443) | (373) | |||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Net gain (loss) | (251) | (161) | |||
Prior service (cost) credit | (28) | (16) | |||
Total other comprehensive income (loss), before income tax expense (benefit) | (279) | (177) | |||
Projected benefit obligation | 1,146 | 1,099 | 1,099 | 1,246 | 1,146 |
Non U.S. Pension Plans | American International Group Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | (12) | (9) | |||
Non U.S. Pension Plans | Plan Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | (35) | (24) | |||
Non U.S. Pension Plans | Non Qualified Pension Plan [Member] | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 199 | ||||
Projected benefit obligation, end of year | 199 | 199 | |||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Projected benefit obligation | 199 | 199 | 199 | 199 | |
Postretirement Plans | |||||
Change in plan assets: | |||||
AIG contributions | 0 | ||||
U.S. Postretirement Plans | |||||
Components of net periodic benefit cost: | |||||
Service cost | 2 | 5 | 4 | ||
Interest cost | 7 | 8 | 9 | ||
Expected return on assets | 0 | 0 | 0 | ||
Amortization of prior service (credit) cost | (12) | (11) | (11) | ||
Amortization of net (gain) loss | (1) | 0 | 0 | ||
Curtailment (gain) loss | (1) | 0 | 0 | ||
Net periodic benefit cost (credit) | (5) | 2 | 2 | ||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 208 | 229 | |||
Service cost | 2 | 5 | 4 | ||
Interest cost | 7 | 8 | 9 | ||
Actuarial (gain) loss | (2) | (23) | |||
Plan amendment | 0 | 0 | |||
Curtailments | (1) | 0 | |||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Other | (4) | 0 | |||
Projected benefit obligation, end of year | 196 | 208 | 229 | ||
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 | 14 | 11 | |||
Benefits paid: | |||||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Fair value of plan assets, end of year | 0 | 0 | 0 | ||
Funded status, end of year | (196) | (208) | |||
Amounts recognized in the consolidated balance sheet: | |||||
Assets | 0 | 0 | |||
Liabilities | (196) | (208) | |||
Total amounts recognized | (196) | (208) | |||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Net gain (loss) | 17 | 13 | |||
Prior service (cost) credit | 2 | 13 | |||
Total other comprehensive income (loss), before income tax expense (benefit) | 19 | 26 | |||
Projected benefit obligation | 196 | 208 | 229 | 196 | 208 |
U.S. Postretirement Plans | American International Group Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | (14) | (11) | |||
U.S. Postretirement Plans | Plan Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | 0 | 0 | |||
Non U.S. Postretirement Plans | |||||
Components of net periodic benefit cost: | |||||
Service cost | 3 | 3 | 2 | ||
Interest cost | 3 | 3 | 2 | ||
Expected return on assets | 0 | 0 | 0 | ||
Amortization of prior service (credit) cost | 0 | (1) | 0 | ||
Amortization of net (gain) loss | 1 | 0 | 0 | ||
Curtailment (gain) loss | 0 | 0 | 0 | ||
Net periodic benefit cost (credit) | 7 | 5 | 4 | ||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 75 | 64 | |||
Service cost | 3 | 3 | 2 | ||
Interest cost | 3 | 3 | 2 | ||
Actuarial (gain) loss | 0 | 9 | |||
Plan amendment | 0 | 0 | |||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | (3) | |||
Projected benefit obligation, end of year | 80 | 75 | 64 | ||
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: | |||||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Fair value of plan assets, end of year | 0 | 0 | 0 | ||
Funded status, end of year | (80) | (75) | |||
Amounts recognized in the consolidated balance sheet: | |||||
Assets | 0 | 0 | |||
Liabilities | (80) | (75) | |||
Total amounts recognized | (80) | (75) | |||
Pre tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Net gain (loss) | (15) | (16) | |||
Prior service (cost) credit | 0 | 0 | |||
Total other comprehensive income (loss), before income tax expense (benefit) | (15) | (16) | |||
Projected benefit obligation | 80 | 64 | $ 64 | $ 80 | $ 75 |
Non U.S. Postretirement Plans | American International Group Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | (1) | (1) | |||
Non U.S. Postretirement Plans | Plan Asset [Member] | |||||
Change in projected benefit obligation: | |||||
Benefits Paid AIG and Plan assets | $ 0 | $ 0 |
EMPLOYEE BENEFITS (Details - Ac
EMPLOYEE BENEFITS (Details - Accumulated benefit obligations for U.S. and non-U.S. pension benefit plans) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 4,948 | $ 5,324 |
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 4,948 | 5,324 |
Accumulated benefit obligation | 4,948 | 5,324 |
Fair value of plan assets | 3,843 | 4,359 |
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 4,948 | 5,324 |
Accumulated benefit obligation | 4,948 | 5,324 |
Fair value of plan assets | 3,843 | 4,359 |
Non U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 1,215 | 1,109 |
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 1,121 | 999 |
Accumulated benefit obligation | 1,016 | 896 |
Fair value of plan assets | 545 | 506 |
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 1,029 | 912 |
Accumulated benefit obligation | 1,009 | 889 |
Fair value of plan assets | $ 536 | $ 497 |
EMPLOYEE BENEFITS (Details - Pr
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 ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | $ 24 | ||
Increase in expense due to decrease of 100 basis point in expected long-term rate of return | 45 | ||
Decrease in expense due to increase of 100 basis point in discount rate | 20 | ||
Decrease in expense due to increase of 100 basis point in expected long-term rate of return | 45 | ||
Pensions | |||
Estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year | |||
Net gain (loss) | (41) | ||
Prior service credit | 0.3 | ||
Pensions | Change in method for pension plans - spot rate | |||
Change in Accounting Estimate [Abstract] | |||
Pension plan expense | 0 | ||
Reduction in pension expense due to change in accounting estimate | 0 | ||
U.S. Pension Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 19 | $ 192 | $ 173 |
Interest cost | 181 | 220 | 228 |
Expected return on assets | (292) | (295) | (288) |
Amortization of prior service (credit) cost | 0 | (22) | (33) |
Amortization of net (gain) loss | 25 | 92 | 42 |
Curtailment (gain) loss | 0 | (179) | 0 |
Net settlement (gain) loss | 149 | 0 | 0 |
Other | 0 | 0 | 0 |
Net periodic benefit cost (credit) | 82 | 8 | 122 |
Total recognized in Accumulated other comprehensive income (loss) | (82) | 143 | (793) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (164) | 135 | (915) |
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 | 0 | ||
Non U.S. Pension Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 31 | 43 | 42 |
Interest cost | 21 | 25 | 29 |
Expected return on assets | (26) | (25) | (22) |
Amortization of prior service (credit) cost | 0 | (2) | (3) |
Amortization of net (gain) loss | 7 | 9 | 7 |
Curtailment (gain) loss | (6) | (1) | 1 |
Net settlement (gain) loss | 2 | 1 | 0 |
Other | 0 | 0 | 0 |
Net periodic benefit cost (credit) | 29 | 50 | 54 |
Total recognized in Accumulated other comprehensive income (loss) | (101) | 38 | (40) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (130) | (12) | (94) |
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 | 0.8 | ||
U.S. Postretirement Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 2 | 5 | 4 |
Interest cost | 7 | 8 | 9 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | (12) | (11) | (11) |
Amortization of net (gain) loss | (1) | 0 | 0 |
Curtailment (gain) loss | (1) | 0 | 0 |
Net settlement (gain) loss | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net periodic benefit cost (credit) | (5) | 2 | 2 |
Total recognized in Accumulated other comprehensive income (loss) | (7) | 12 | (21) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (2) | 10 | (23) |
Non U.S. Postretirement Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 3 | 3 | 2 |
Interest cost | 3 | 3 | 2 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service (credit) cost | 0 | (1) | 0 |
Amortization of net (gain) loss | 1 | 0 | 0 |
Curtailment (gain) loss | 0 | 0 | 0 |
Net settlement (gain) loss | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net periodic benefit cost (credit) | 7 | 5 | 4 |
Total recognized in Accumulated other comprehensive income (loss) | 1 | (9) | (11) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ (6) | $ (14) | $ (15) |
EMPLOYEE BENEFITS (Details - We
EMPLOYEE BENEFITS (Details - Weighted average assumptions used to determine the benefit obligations) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. Pension Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 4.14% | 4.32% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 4.33% | 3.94% | 4.83% |
Rate of compensation increase (as a percent) | 3.40% | 3.50% | |
Expected return on assets (as a percent) | 7.00% | 7.25% | 7.25% |
Discount Rate Methodology | |||
Discount rate (as a percent) | 4.15% | 4.32% | |
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) | 1.50% | 2.17% | |
Rate of compensation increase (as a percent) | 2.50% | 2.64% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 2.17% | 2.33% | 2.77% |
Rate of compensation increase (as a percent) | 2.64% | 2.89% | 2.89% |
Expected return on assets (as a percent) | 3.28% | 3.33% | 2.93% |
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) | 54.00% | 50.00% | |
Weighted average discount rate (as a percent) | 0.47% | 0.99% | |
U.S. Postretirement Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 4.02% | 4.21% | |
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 | $ 4 | $ 6 | |
One percent decrease | $ (3) | $ (4) | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 4.21% | 3.77% | 4.59% |
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) | 6.31% | 6.79% | |
Year in which the ultimate trend rate is reached: | 2,038 | 2,027 | |
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) | 5.00% | 6.64% | |
Year in which the ultimate trend rate is reached: | 2,038 | 2,027 | |
Non U.S. Postretirement Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 3.95% | 4.09% | |
Rate of compensation increase (as a percent) | 3.38% | 3.43% | |
Effect of one percent point change in the assumed healthcare cost trend rate on postretirement benefit obligations | |||
One percent increase | $ 19 | $ 17 | |
One percent decrease | $ (14) | $ (12) | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 4.09% | 4.04% | 4.77% |
Rate of compensation increase (as a percent) | 3.43% | 3.29% | 3.34% |
EMPLOYEE BENEFITS (Details - As
EMPLOYEE BENEFITS (Details - Assumed health care cost trend rates) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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) | 7.00% | 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) | 45.00% | ||
Actual allocation (as a percent) | 43.00% | 35.00% | |
U.S. Pension Plans | Fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 40.00% | ||
Actual allocation (as a percent) | 36.00% | 41.00% | |
U.S. Pension Plans | Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 15.00% | ||
Actual allocation (as a percent) | 21.00% | 24.00% | |
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) | 3.28% | 3.33% | 2.93% |
Non U.S. Pension Plans | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 30.00% | ||
Actual allocation (as a percent) | 44.00% | 45.00% | |
Non U.S. Pension Plans | Fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 50.00% | ||
Actual allocation (as a percent) | 36.00% | 35.00% | |
Non U.S. Pension Plans | Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 18.00% | ||
Actual allocation (as a percent) | 14.00% | 13.00% | |
Non U.S. Pension Plans | Cash & cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation (as a percent) | 2.00% | ||
Actual allocation (as a percent) | 6.00% | 7.00% | |
Japan's pension plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual allocation (as a percent) | 56.00% | 54.00% | |
Expected weighted average long-term rate of return plan assets (as a percent) | 2.61% | 1.71% | |
Period of review and revision of long-term strategic asset allocation | 5 years |
EMPLOYEE BENEFITS (Details -150
EMPLOYEE BENEFITS (Details - Assets Measured at Fair Value) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at Fair Value | $ 6,741 | $ 8,577 | |
Other investment types: Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at Fair Value | 960 | 1,100 | |
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,843 | 4,359 | $ 4,111 |
U.S. Pension Plans | Other investment types: Annuity contracts | US Life | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21 | 23 | |
U.S. Pension Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,443 | 1,427 | |
U.S. Pension Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 228 | 239 | |
U.S. Pension Plans | Level 1 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 838 | 924 | |
U.S. Pension Plans | Level 1 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 377 | 262 | |
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 | 0 | 2 | |
U.S. Pension Plans | Level 1 | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
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 | 1,414 | 1,810 | |
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 | 1 | 0 | |
U.S. Pension Plans | Level 2 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 1 | |
U.S. Pension Plans | Level 2 | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,174 | 1,452 | |
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 | 218 | 322 | |
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 | 0 | 7 | |
U.S. Pension Plans | Level 2 | Other investment types: Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
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 | Real Estate | |||
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 | 5 | |
U.S. Pension Plans | Level 2 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21 | 23 | |
U.S. Pension Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 26 | 37 | 25 |
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 | 2 | 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 | 0 | 0 | 0 |
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 | Real Estate | |||
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 | 24 | 28 | 17 |
U.S. Pension Plans | Level 3 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Total Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,883 | 3,274 | |
U.S. Pension Plans | Total Fair Value | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 228 | 239 | |
U.S. Pension Plans | Total Fair Value | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 839 | 924 | |
U.S. Pension Plans | Total Fair Value | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 377 | 263 | |
U.S. Pension Plans | Total Fair Value | U.S. government and government sponsored entities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,176 | 1,461 | |
U.S. Pension Plans | Total Fair Value | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Total Fair Value | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 218 | 322 | |
U.S. Pension Plans | Total Fair Value | Fixed maturity securities: Mortgage and other asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 7 | |
U.S. Pension Plans | Total Fair Value | Other investment types: Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. Pension Plans | Total Fair Value | Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2 | |
U.S. Pension Plans | Total Fair Value | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
U.S. Pension Plans | Total Fair Value | Other investment types: Private equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24 | 33 | |
U.S. Pension Plans | Total Fair Value | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21 | 23 | |
Non U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 803 | 773 | 708 |
Non U.S. Pension Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 348 | 343 | |
Non U.S. Pension Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 50 | 49 | |
Non U.S. Pension Plans | Level 1 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 35 | |
Non U.S. Pension Plans | Level 1 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 298 | 248 | |
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 | 0 | 0 | |
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 | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 11 | |
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 | 347 | 335 | |
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 | 58 | 67 | |
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 | 90 | 190 | |
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 | 186 | 66 | |
Non U.S. Pension Plans | Level 2 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | 12 | |
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 | 108 | 95 | 73 |
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 | 0 | 0 | |
Non U.S. Pension Plans | Level 3 | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 108 | 95 | $ 56 |
Non U.S. Pension Plans | Total Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 803 | 773 | |
Non U.S. Pension Plans | Total Fair Value | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 50 | 49 | |
Non U.S. Pension Plans | Total Fair Value | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 35 | |
Non U.S. Pension Plans | Total Fair Value | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 356 | 315 | |
Non U.S. Pension Plans | Total Fair Value | 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 | Total Fair Value | Non-U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 90 | 190 | |
Non U.S. Pension Plans | Total Fair Value | Fixed maturity securities: U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 186 | 66 | |
Non U.S. Pension Plans | Total Fair Value | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13 | 12 | |
Non U.S. Pension Plans | Total Fair Value | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | ||
Non U.S. Pension Plans | Total Fair Value | Other investment types: Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 108 | $ 95 |
EMPLOYEE BENEFITS (Details - Ch
EMPLOYEE BENEFITS (Details - Changes in Level 3 fair value measurements) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in Level 3 fair value measurements | ||
Purchases | $ 5,974 | $ 5,355 |
Sales | (971) | (1,600) |
Settlements | (6,278) | (6,218) |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | (410) | (129) |
U.S. Pension Plans | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 4,359 | 4,111 |
Net Realized and Unrealized Gains (Losses) | 154 | (8) |
Fair value of plan assets, end of year | 3,843 | 4,359 |
U.S. Pension Plans | Fixed maturity securities: U.S. investment grade | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, end of year | 26 | |
U.S. Pension Plans | Level 3 | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 37 | 25 |
Net Realized and Unrealized Gains (Losses) | (3) | 1 |
Purchases | 6 | 27 |
Sales | (14) | (16) |
Settlements | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 26 | 37 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | (4) | 2 |
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 | 8 |
Net Realized and Unrealized Gains (Losses) | 1 | (1) |
Purchases | 2 | 17 |
Sales | (10) | (15) |
Settlements | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 2 | 9 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | 0 |
U.S. Pension Plans | Level 3 | Hedge funds: | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | 0 |
Net Realized and Unrealized Gains (Losses) | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | 0 |
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, beginning of year | 0 | |
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 | 28 | 17 |
Net Realized and Unrealized Gains (Losses) | (4) | 2 |
Purchases | 4 | 10 |
Sales | (4) | (1) |
Settlements | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 24 | 28 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | (4) | 2 |
U.S. Pension Plans | Level 3 | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
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 | 773 | 708 |
Net Realized and Unrealized Gains (Losses) | 19 | 47 |
Fair value of plan assets, end of year | 803 | 773 |
Non U.S. Pension Plans | Level 3 | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 95 | 73 |
Net Realized and Unrealized Gains (Losses) | 12 | (8) |
Purchases | 1 | 1 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers In | 2 | 53 |
Transfers Out | (2) | (24) |
Fair value of plan assets, end of year | 108 | 95 |
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 | 0 | 17 |
Net Realized and Unrealized Gains (Losses) | 0 | (1) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | (16) |
Fair value of plan assets, end of year | 0 | 0 |
Non U.S. Pension Plans | Level 3 | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 95 | 56 |
Net Realized and Unrealized Gains (Losses) | 12 | (7) |
Purchases | 1 | 1 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Transfers In | 2 | 53 |
Transfers Out | (2) | (8) |
Fair value of plan assets, end of year | $ 108 | $ 95 |
EMPLOYEE BENEFITS (Details - Ex
EMPLOYEE BENEFITS (Details - Expected Cash Flows) - USD ($) $ in Millions | Jan. 02, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | $ 236 | $ 166 | $ 156 | |
Expected future benefit payments, net of participants' contributions | ||||
Pre tax expenses associated with contribution plans | 236 | 166 | $ 156 | |
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 | 3.00% | |||
Pensions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated employer contribution | 70 | |||
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 24 | 558 | ||
Expected future benefit payments, net of participants' contributions | ||||
2,017 | 313 | |||
2,018 | 305 | |||
2,019 | 318 | |||
2,020 | 312 | |||
2,021 | 308 | |||
2022-2026 | 1,477 | |||
Pre tax expenses associated with contribution plans | 24 | 558 | ||
Non U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 71 | 62 | ||
Expected future benefit payments, net of participants' contributions | ||||
2,017 | 38 | |||
2,018 | 39 | |||
2,019 | 44 | |||
2,020 | 45 | |||
2,021 | 47 | |||
2022-2026 | 275 | |||
Pre tax expenses associated with contribution plans | 71 | 62 | ||
Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum required cash contributions | 0 | |||
AIG contributions | 0 | |||
Expected future benefit payments, net of participants' contributions | ||||
Pre tax expenses associated with contribution plans | 0 | |||
U.S. Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 14 | 11 | ||
Expected future benefit payments, net of participants' contributions | ||||
2,017 | 15 | |||
2,018 | 15 | |||
2,019 | 15 | |||
2,020 | 16 | |||
2,021 | 16 | |||
2022-2026 | 82 | |||
Pre tax expenses associated with contribution plans | 14 | 11 | ||
Non U.S. Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
AIG contributions | 1 | 1 | ||
Expected future benefit payments, net of participants' contributions | ||||
2,017 | 1 | |||
2,018 | 2 | |||
2,019 | 2 | |||
2,020 | 2 | |||
2,021 | 2 | |||
2022-2026 | 13 | |||
Pre tax expenses associated with contribution plans | $ 1 | $ 1 |
OWNERSHIP (Details)
OWNERSHIP (Details) | Dec. 31, 2016shares |
The Vanguard Group | |
Beneficial Ownership [Line Items] | |
Ownership interest (as a percent) | 6.30% |
Common stock deemed to be beneficially owned (in shares) | 62,619,185 |
Blackrock, Inc | |
Beneficial Ownership [Line Items] | |
Ownership interest (as a percent) | 6.50% |
Common stock deemed to be beneficially owned (in shares) | 64,426,821 |
Capital Research Global Investors | |
Beneficial Ownership [Line Items] | |
Ownership interest (as a percent) | 7.80% |
Common stock deemed to be beneficially owned (in shares) | 77,926,159 |
INCOME TAXES (Details - Income
INCOME TAXES (Details - Income (loss) from continuing operations and income tax expense (benefit)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income (loss) from continuing operations before income tax expense (benefit) | ||||||||||||
U.S. | $ 1,041 | $ 1,950 | $ 8,250 | |||||||||
Foreign | (1,115) | 1,331 | 2,251 | |||||||||
Income (loss) from continuing operations before income tax expense | $ (3,455) | $ 737 | $ 2,858 | $ (214) | $ (2,932) | $ (115) | $ 2,552 | $ 3,776 | (74) | 3,281 | 10,501 | |
Foreign: | ||||||||||||
Current | 436 | 391 | 473 | |||||||||
Deferred | (121) | (95) | 154 | |||||||||
U.S.: | ||||||||||||
Current | 140 | 429 | 115 | |||||||||
Deferred | (270) | 334 | 2,185 | |||||||||
Income tax expense | 185 | 1,059 | 2,927 | |||||||||
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 | (159) | 3,281 | 10,524 | |||||||||
Amounts attributable to discontinued operations | (85) | 0 | 23 | |||||||||
Income (loss) from continuing operations before income tax expense | (3,455) | 737 | 2,858 | (214) | (2,932) | (115) | 2,552 | 3,776 | (74) | 3,281 | 10,501 | |
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 | (56) | 1,148 | 3,683 | |||||||||
Consolidated total amounts | 190 | 1,059 | 3,000 | |||||||||
Amounts attributable to discontinued operations | 5 | 0 | 73 | |||||||||
Income tax expense | 185 | 1,059 | 2,927 | |||||||||
Adjustments: | ||||||||||||
Tax exempt interest | (178) | (195) | (236) | |||||||||
Uncertain tax positions | 268 | 195 | (81) | |||||||||
Reclassifications from accumulated other comprehensive income | (132) | (127) | (61) | |||||||||
Partial completion of Internal Revenue Service examination | 116 | 109 | ||||||||||
Tax exempt income | 253 | |||||||||||
Cross Border Financing Transactions | 216 | 324 | ||||||||||
Dispositions of Subsidiaries | 118 | |||||||||||
Tax Attribute Restoration | (164) | (182) | ||||||||||
Non-controlling Interest | (81) | |||||||||||
Non-deductible transfer pricing charges | 102 | 97 | 86 | |||||||||
Dividends received deduction | (75) | (72) | (62) | |||||||||
Effect of foreign operations | 234 | (58) | (68) | |||||||||
State income taxes | 23 | 34 | 39 | |||||||||
Other | 13 | (73) | (2) | |||||||||
Effect of discontinued operations | 35 | 0 | 65 | |||||||||
Valuation allowance | ||||||||||||
Continuing operations | 83 | $ 110 | $ (181) | |||||||||
Increase (Decrease) in certain other valuation allowances associated with foreign jurisdictions | 69 | |||||||||||
Increase (Decrease) in certain other valuation allowances associated with certain state jurisdictions. | 170 | |||||||||||
Valuation allowance related to unrealized losses that are no more-likely-than-not to be realized | $ 728 | |||||||||||
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) | (119.50%) | 32.30% | 28.50% | |||||||||
Amounts attributable to discontinued operations (as a percent) | (5.90%) | 0.00% | 317.40% | |||||||||
Adjustments: | ||||||||||||
Amounts attributable to continuing operations (as a percent) | (250.00%) | 32.30% | 27.90% | |||||||||
Tax exempt interest (as a percent) | 111.90% | (5.90%) | (2.20%) | |||||||||
Uncertain Tax Positions (as a percent) | (168.60%) | 5.90% | (0.80%) | |||||||||
Reclassification from accumulated other comprehensive income (as a percent) | 83.00% | (3.90%) | (0.60%) | |||||||||
Dispositions of Subsidiaries (as a percent) | (74.20%) | |||||||||||
Tax Attribute Restoration (as a percent) | 103.10% | (1.70%) | ||||||||||
Non-controlling Interest (as a percent) | 50.90% | |||||||||||
Non-deductible transfer pricing charges (as a percent) | (64.20%) | 3.00% | 0.80% | |||||||||
Dividends received deduction (as a percent) | 47.20% | (2.20%) | (0.60%) | |||||||||
Effect of foreign operations (as a percent) | (147.20%) | (1.80%) | (0.60%) | |||||||||
State income taxes (as a percent) | (14.50%) | 1.00% | 0.40% | |||||||||
Other (as a percent) | (8.20%) | (2.20%) | 0.00% | |||||||||
Effect of discontinued operations (as a percent) | (22.00%) | 0.00% | 0.60% | |||||||||
Valuation allowance (as a percent): | ||||||||||||
Continuing operations (as a percent) | (52.20%) | 3.40% | (1.70%) | |||||||||
Undistributed Earnings of Foreign Subsidiaries | 2,000 | $ 2,000 | ||||||||||
Accounting for Uncertainty in Income Taxes | ||||||||||||
Unrecognized tax benefits, excluding interest and penalties | 4,530 | 4,331 | 4,530 | $ 4,331 | $ 4,395 | $ 4,340 | ||||||
Unrecognized tax benefits, if recognized would not affect the effective tax rate | 100 | 100 | 100 | 100 | 300 | |||||||
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate | 4,400 | 4,200 | 4,400 | 4,200 | 4,100 | |||||||
Unrecognized tax benefits, interest and penalties accrued | 1,200 | 1,200 | 1,200 | 1,200 | 1,100 | |||||||
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties | $ 26 | 156 | 21 | |||||||||
Unrecognized tax benefits, period of reasonably possible change in balance | 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. | |||||||||||
Deferred tax asset valuation allowance recognized | $ 87 | $ (2) | $ 35 | $ (37) | $ 49 | $ 8 | $ (40) | $ 93 | $ 0 | |||
US Life companies capital loss carryforward | ||||||||||||
Valuation allowance | ||||||||||||
Continuing operations | $ 209,000 | |||||||||||
Other valuation allowance associated with foreign jurisdictions | Residential mortgages dispute resolution | ||||||||||||
Adjustments: | ||||||||||||
Other | $ 0 |
INCOME TAXES (Details - Compone
INCOME TAXES (Details - Components of the net deferred tax assets (liabilities) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Life policy reserves | $ 3,040 | $ 353 |
Losses and tax credit carryforwards | 16,448 | 18,680 |
Basis differences on investments | 4,985 | 4,886 |
Accruals not currently deductible, and other | 1,128 | 1,003 |
Deferred Tax Assets, Investments in foreign subsidiaries | 103 | |
Loss reserve discount | 1,151 | 1,021 |
Loan loss and other reserves | 39 | 8 |
Unearned premium reserve reduction | 924 | 1,603 |
Flight equipment, fixed assets and intangible assets | 478 | 129 |
Other | 710 | 577 |
Employee benefits | 1,171 | 1,286 |
Total deferred tax assets | 30,177 | 29,546 |
Deferred tax liabilities: | ||
Deferred Tax Liabilities, Investments in foreign subsidiaries | 0 | (33) |
Deferred policy acquisition costs | (3,790) | (3,467) |
Unrealized gains related to available for sale debt securities | (2,844) | (3,077) |
Total deferred tax liabilities | (6,634) | (6,577) |
Net deferred tax assets before valuation allowance | 23,543 | 22,969 |
Valuation allowance | (2,831) | (3,012) |
Net deferred tax assets (liabilities) | $ 20,712 | $ 19,957 |
INCOME TAXES (Details - U.S. co
INCOME TAXES (Details - U.S. consolidated income tax group tax losses and credits carryforwards) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, gross | |
Net operating loss carryforwards | $ 34,618 |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 12,116 |
Foreign tax credit carryforwards | 4,917 |
Other carryforwards | 737 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis | 17,770 |
Unrecognized tax benefit | (2,903) |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 14,867 |
Other carryforwards include general business credits | $ 96 |
Other Operating Loss Carryforward | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | Various |
Maximum | Operating loss carryforward | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,035 |
Maximum | Foreign tax credit carryforwards | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,023 |
Minimum | Operating loss carryforward | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,028 |
Minimum | Foreign tax credit carryforwards | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Expiration periods | 2,018 |
INCOME TAXES (Details - Assessm
INCOME TAXES (Details - Assessment of Deferred Tax Asset (liabilities) Valuation Allowance) - USD ($) $ in Millions | Feb. 26, 2009 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets, Liabilities [Line Items] | ||||||||||||
Change in valuation allowance | $ 87 | $ (2) | $ 35 | $ (37) | $ 49 | $ 8 | $ (40) | $ 93 | $ 0 | |||
Continuing operations | 83 | $ 110 | $ (181) | |||||||||
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 | (2,831) | (3,012) | (2,831) | (3,012) | ||||||||
Net deferred tax assets (liabilities) | 20,712 | 19,957 | 20,712 | 19,957 | ||||||||
Net foreign, state & local deferred tax assets | 23,543 | 22,969 | 23,543 | 22,969 | ||||||||
Net U.S, foreign, state & local deferred tax assets | 21,332 | 20,394 | 21,332 | 20,394 | ||||||||
Net foreign, state & local deferred tax liabilities | (6,634) | (6,577) | (6,634) | (6,577) | ||||||||
Non-Life Companies [Member] | ||||||||||||
Deferred Tax Assets, Liabilities [Line Items] | ||||||||||||
Deferred tax asset valuation allowance allocated to other comprehensive income | 260 | |||||||||||
Life Insurance Companies [Member] | ||||||||||||
Deferred Tax Assets, Liabilities [Line Items] | ||||||||||||
Deferred tax asset valuation allowance allocated to other comprehensive income | 682 | |||||||||||
Deferred tax asset - U.S. consolidated income tax group | ||||||||||||
Deferred Tax Assets, Liabilities [Line Items] | ||||||||||||
Change in valuation allowance | 14,900 | |||||||||||
Deferred tax asset valuation allowance recognized related to certain state, local and foreign jurisdictions | 0 | |||||||||||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||||||||||
Net U.S. consolidated return group deferred tax assets | 24,134 | 24,134 | 24,134 | 24,134 | ||||||||
Net deferred tax assets (liabilities) in Accumulated other comprehensive income | (2,384) | (2,806) | (2,384) | (2,806) | ||||||||
Valuation allowance | (874) | (1,281) | (874) | (1,281) | ||||||||
Net deferred tax assets (liabilities) | 20,876 | 20,047 | 20,876 | 20,047 | ||||||||
Refund of taxes, interest and penalties sought | $ 306 | |||||||||||
Deferred tax liability - foreign, state and local | ||||||||||||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||||||||||
Valuation allowance | (1,957) | (1,731) | (1,957) | (1,731) | ||||||||
Net deferred tax assets (liabilities) | 456 | 347 | 456 | 347 | ||||||||
Net foreign, state & local deferred tax assets | 2,413 | 2,078 | 2,413 | 2,078 | ||||||||
Net foreign, state & local deferred tax liabilities | (620) | (437) | (620) | (437) | ||||||||
Net foreign, state & local deferred tax liabilities | $ 164 | $ 90 | $ 164 | $ 90 |
INCOME TAXES (Details - Account
INCOME TAXES (Details - Accounting For Uncertainty in Income Taxes) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Rollforward of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | |||
Gross unrecognized tax benefits, beginning of year | $ 4,331 | $ 4,395 | $ 4,340 |
Increases in tax positions for prior years | 235 | 162 | 91 |
Decreases in tax positions for prior years | (39) | (209) | (60) |
Increases in tax positions for current year | 3 | 0 | 10 |
Lapse in statute of limitations | 0 | (4) | (6) |
Settlements | 0 | (13) | 0 |
Activity of discontinued operations | 0 | 0 | 20 |
Gross unrecognized tax benefits, end of year | 4,530 | 4,331 | 4,395 |
Unrecognized tax benefits, if recognized would not affect the effective tax rate | 100 | 100 | 300 |
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate | 4,400 | 4,200 | 4,100 |
Unrecognized tax benefits, interest and penalties accrued | 1,200 | 1,200 | 1,100 |
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties | $ 26 | $ 156 | $ 21 |
Unrecognized tax benefits, period of reasonably possible change in balance | 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. |
INCOME TAXES (Details - Tax Yea
INCOME TAXES (Details - Tax Years that remain open in Income Taxes) | 12 Months Ended |
Dec. 31, 2016 | |
UNITED STATES | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,000 |
UNITED STATES | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,015 |
Australia [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,012 |
Australia [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,015 |
FRANCE [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,014 |
FRANCE [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,015 |
JAPAN | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,010 |
JAPAN | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,015 |
KOREA [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,011 |
KOREA [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,015 |
SINGAPORE [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,012 |
SINGAPORE [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,015 |
UNITED KINGDOM [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,013 |
UNITED KINGDOM [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2,015 |
QUARTERLY FINANCIAL INFORMAT160
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details - Consolidated Statements of Income (Loss)) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Total revenues | $ 13,010 | $ 12,854 | $ 14,724 | $ 11,779 | $ 13,831 | $ 12,822 | $ 15,699 | $ 15,975 | $ 52,367 | $ 58,327 | $ 64,406 |
Income (loss) from continuing operations before income tax expense | (3,455) | 737 | 2,858 | (214) | (2,932) | (115) | 2,552 | 3,776 | (74) | 3,281 | 10,501 |
Income (loss) from discontinued operations, net of income tax | (36) | 3 | (10) | (47) | 0 | (17) | 16 | 1 | (90) | 0 | (50) |
Net income (loss) | (2,506) | 436 | 1,924 | (203) | (1,849) | (197) | 1,791 | 2,477 | (349) | 2,222 | 7,524 |
Net income (loss) from continuing operations attributable to noncontrolling interests | 535 | (26) | 11 | (20) | (8) | 34 | (9) | 9 | 500 | 26 | (5) |
Net income (loss) attributable to AIG | $ (3,041) | $ 462 | $ 1,913 | $ (183) | $ (1,841) | $ (231) | $ 1,800 | $ 2,468 | $ (849) | $ 2,196 | $ 7,529 |
Basic: | |||||||||||
Income (loss) from continuing operations | $ (2.93) | $ 0.43 | $ 1.73 | $ (0.12) | $ (1.5) | $ (0.17) | $ 1.34 | $ 1.81 | $ (0.7) | $ 1.69 | $ 5.31 |
Income (loss) from discontinued operations | (0.03) | 0 | (0.01) | (0.04) | 0 | (0.01) | 0.01 | 0 | (0.08) | 0 | (0.04) |
Diluted: | |||||||||||
Income (loss) from continuing operations | (2.93) | 0.42 | 1.69 | (0.12) | (1.5) | (0.17) | 1.31 | 1.78 | (0.7) | 1.65 | 5.24 |
Income (loss) from discontinued operations | $ (0.03) | $ 0 | $ (0.01) | $ (0.04) | $ 0 | $ (0.01) | $ 0.01 | $ 0 | $ (0.08) | $ 0 | $ (0.04) |
Weighted average shares outstanding: | |||||||||||
Basic | 1,023,886,592 | 1,071,295,892 | 1,113,587,927 | 1,156,548,459 | 1,226,880,632 | 1,279,072,748 | 1,329,157,366 | 1,365,951,690 | 1,091,085,131 | 1,299,825,350 | 1,427,959,799 |
Diluted | 1,023,886,592 | 1,102,400,770 | 1,140,045,973 | 1,156,548,459 | 1,226,880,632 | 1,279,072,748 | 1,365,390,431 | 1,386,263,549 | 1,091,085,131 | 1,334,464,883 | 1,447,553,652 |
Noteworthy quarterly items income (expense): | |||||||||||
Other-than-temporary impairments | $ (145) | $ (102) | $ (108) | $ (204) | $ (106) | $ (273) | $ (164) | $ (128) | $ 487 | $ 591 | $ 217 |
Net (gain) loss on sale of divested businesses | (194) | (128) | (225) | 2 | 1 | 3 | 1 | 6 | 545 | (11) | 2,197 |
Federal and foreign valuation allowance for deferred tax assets | 87 | (2) | 35 | (37) | 49 | 8 | (40) | 93 | 0 | ||
Net gains (loss) on extinguishment of debt | 2 | 14 | (7) | (83) | 0 | (346) | (342) | (68) | (74) | (756) | (2,282) |
Restructuring and other costs | 206 | 210 | 90 | 188 | 222 | 274 | 0 | 0 | |||
Adjustment | |||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Income (loss) from continuing operations before income tax expense | (12) | ||||||||||
Net income (loss) attributable to AIG | (154) | ||||||||||
Investments: | |||||||||||
Operating Income Loss | $ (1) | ||||||||||
Adjustments 2015 [Member] | |||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Income (loss) from continuing operations before income tax expense | (193) | (376) | |||||||||
Net income (loss) attributable to AIG | (308) | (36) | 15 | (16) | (156) | (51) | |||||
Investments: | |||||||||||
Operating Income Loss | (122) | (235) | |||||||||
Adjustments 2016 [Member] | |||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Income (loss) from continuing operations before income tax expense | (57) | ||||||||||
Net income (loss) attributable to AIG | $ (65) | $ 66 | $ 19 | $ (88) | $ 22 | $ 5 | $ (5) | (174) | $ (67) | $ (12) | |
Investments: | |||||||||||
Operating Income Loss | $ (6) |
INFORMATION PROVIDED IN CONN161
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | ||||
Short-term investments | $ 12,302 | $ 10,132 | ||
Other investments | 315,873 | 328,222 | ||
Total investments | 328,175 | 338,354 | ||
Cash | 1,868 | 1,629 | $ 1,758 | $ 2,241 |
Loans to subsidiaries | 0 | |||
Investment in consolidated subsidiaries | 0 | |||
Other assets, including deferred income taxes | 161,022 | 156,859 | ||
Assets held for sale | 7,199 | |||
Total assets | 498,264 | 496,842 | ||
Liabilities: | ||||
Insurance liabilities | 275,120 | 271,645 | ||
Long-term Debt | 30,912 | 29,249 | ||
Other liabilities, including intercompany balances | 109,268 | 105,738 | ||
Loans from subsidiaries | 0 | |||
Liabilities held for sale | 6,106 | |||
Total liabilities | 421,406 | 406,632 | ||
Total AIG shareholders' equity | 76,300 | 89,658 | ||
Non-redeemable noncontrolling interests | 558 | 552 | ||
Total equity | 76,858 | 90,210 | 107,272 | 101,081 |
Total liabilities and equity | 498,264 | 496,842 | ||
AIG (As Guarantor) | ||||
Assets: | ||||
Short-term investments | 4,424 | 4,042 | ||
Other investments | 7,154 | 7,425 | ||
Total investments | 11,578 | 11,467 | ||
Cash | 2 | 34 | 26 | 30 |
Loans to subsidiaries | 34,692 | 35,927 | ||
Investment in consolidated subsidiaries | 42,582 | 51,151 | ||
Other assets, including deferred income taxes | 24,099 | 23,299 | ||
Assets held for sale | 0 | |||
Total assets | 112,953 | 121,878 | ||
Liabilities: | ||||
Insurance liabilities | 0 | |||
Long-term Debt | 21,405 | 19,777 | ||
Other liabilities, including intercompany balances | 14,671 | 11,869 | ||
Loans from subsidiaries | 577 | 574 | ||
Liabilities held for sale | 0 | |||
Total liabilities | 36,653 | 32,220 | ||
Total AIG shareholders' equity | 76,300 | 89,658 | ||
Non-redeemable noncontrolling interests | 0 | |||
Total equity | 76,300 | 89,658 | ||
Total liabilities and equity | 112,953 | 121,878 | ||
AIGLH | ||||
Assets: | ||||
Short-term investments | 0 | |||
Other investments | 0 | |||
Total investments | 0 | |||
Cash | 34 | 116 | 91 | 51 |
Loans to subsidiaries | 0 | |||
Investment in consolidated subsidiaries | 27,309 | 30,239 | ||
Other assets, including deferred income taxes | 239 | 258 | ||
Assets held for sale | 0 | |||
Total assets | 27,582 | 30,613 | ||
Liabilities: | ||||
Insurance liabilities | 0 | |||
Long-term Debt | 642 | 704 | ||
Other liabilities, including intercompany balances | 194 | 201 | ||
Loans from subsidiaries | 0 | 3 | ||
Liabilities held for sale | 0 | |||
Total liabilities | 836 | 908 | ||
Total AIG shareholders' equity | 26,746 | 29,705 | ||
Non-redeemable noncontrolling interests | 0 | |||
Total equity | 26,746 | 29,705 | ||
Total liabilities and equity | 27,582 | 30,613 | ||
Other Subsidiaries | ||||
Assets: | ||||
Short-term investments | 13,218 | 9,637 | ||
Other investments | 308,719 | 320,797 | ||
Total investments | 321,937 | 330,434 | ||
Cash | 1,832 | 1,479 | 1,641 | 2,160 |
Loans to subsidiaries | 576 | 578 | ||
Investment in consolidated subsidiaries | 0 | |||
Other assets, including deferred income taxes | 140,743 | 135,690 | ||
Assets held for sale | 7,199 | |||
Total assets | 472,287 | 468,181 | ||
Liabilities: | ||||
Insurance liabilities | 275,120 | 271,645 | ||
Long-term Debt | 8,865 | 8,768 | ||
Other liabilities, including intercompany balances | 103,975 | 99,777 | ||
Loans from subsidiaries | 34,691 | 35,928 | ||
Liabilities held for sale | 6,106 | |||
Total liabilities | 428,757 | 416,118 | ||
Total AIG shareholders' equity | 42,972 | 51,511 | ||
Non-redeemable noncontrolling interests | 558 | 552 | ||
Total equity | 43,530 | 52,063 | ||
Total liabilities and equity | 472,287 | 468,181 | ||
Reclassification and Eliminations [Member] | ||||
Assets: | ||||
Short-term investments | (5,340) | (3,547) | ||
Other investments | 0 | |||
Total investments | (5,340) | (3,547) | ||
Cash | 0 | 0 | $ 0 | $ 0 |
Loans to subsidiaries | (35,268) | (36,505) | ||
Investment in consolidated subsidiaries | (69,891) | (81,390) | ||
Other assets, including deferred income taxes | (4,059) | (2,388) | ||
Assets held for sale | 0 | |||
Total assets | (114,558) | (123,830) | ||
Liabilities: | ||||
Insurance liabilities | 0 | 0 | ||
Long-term Debt | 0 | |||
Other liabilities, including intercompany balances | (9,572) | (6,109) | ||
Loans from subsidiaries | (35,268) | (36,505) | ||
Liabilities held for sale | 0 | |||
Total liabilities | (44,840) | (42,614) | ||
Total AIG shareholders' equity | (69,718) | (81,216) | ||
Non-redeemable noncontrolling interests | 0 | |||
Total equity | (69,718) | (81,216) | ||
Total liabilities and equity | $ (114,558) | $ (123,830) |
INFORMATION PROVIDED IN CONN162
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | $ 0 | $ 0 | $ 0 | ||||||||
Other income | 52,367 | 58,327 | 64,406 | ||||||||
Total revenues | $ 13,010 | $ 12,854 | $ 14,724 | $ 11,779 | $ 13,831 | $ 12,822 | $ 15,699 | $ 15,975 | 52,367 | 58,327 | 64,406 |
Expenses: | |||||||||||
Interest expense | 1,260 | 1,281 | 1,718 | ||||||||
Net (gains) losses on extinguishment of debt | (2) | (14) | 7 | 83 | 0 | 346 | 342 | 68 | 74 | 756 | 2,282 |
Other expenses | 51,107 | 53,009 | 49,905 | ||||||||
Total benefits, losses and expenses | 52,441 | 55,046 | 53,905 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (74) | 3,281 | 10,501 | ||||||||
Income tax expense (benefit) | 185 | 1,059 | 2,927 | ||||||||
Income (loss) from continuing operations | (259) | 2,222 | 7,574 | ||||||||
Income (loss) from discontinued operations, net of income taxes | (36) | 3 | (10) | (47) | 0 | (17) | 16 | 1 | (90) | 0 | (50) |
Net income (loss) | (2,506) | 436 | 1,924 | (203) | (1,849) | (197) | 1,791 | 2,477 | (349) | 2,222 | 7,524 |
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 535 | (26) | 11 | (20) | (8) | 34 | (9) | 9 | 500 | 26 | (5) |
Net income (loss) attributable to AIG | $ (3,041) | $ 462 | $ 1,913 | $ (183) | $ (1,841) | $ (231) | $ 1,800 | $ 2,468 | (849) | 2,196 | 7,529 |
AIG (As Guarantor) | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | (1,269) | 3,954 | 9,450 | ||||||||
Other income | 516 | 88 | 1,658 | ||||||||
Total revenues | (753) | 4,042 | 11,108 | ||||||||
Expenses: | |||||||||||
Interest expense | 988 | 1,049 | 1,507 | ||||||||
Net (gains) losses on extinguishment of debt | 77 | 703 | 2,248 | ||||||||
Other expenses | 295 | 1,178 | 1,546 | ||||||||
Total benefits, losses and expenses | 1,360 | 2,930 | 5,301 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (2,113) | 1,112 | 5,807 | ||||||||
Income tax expense (benefit) | (1,301) | (1,086) | (1,735) | ||||||||
Income (loss) from continuing operations | (812) | 2,198 | 7,542 | ||||||||
Income (loss) from discontinued operations, net of income taxes | (37) | (2) | (13) | ||||||||
Net income (loss) | (849) | 2,196 | 7,529 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | (849) | 2,196 | 7,529 | ||||||||
AIGLH | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | (197) | 1,936 | 3,519 | ||||||||
Other income | 5 | 0 | 0 | ||||||||
Total revenues | (192) | 1,936 | 3,519 | ||||||||
Expenses: | |||||||||||
Interest expense | 51 | 58 | 100 | ||||||||
Net (gains) losses on extinguishment of debt | 0 | 0 | 0 | ||||||||
Other expenses | 16 | 44 | 203 | ||||||||
Total benefits, losses and expenses | 67 | 102 | 303 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (259) | 1,834 | 3,216 | ||||||||
Income tax expense (benefit) | (21) | (73) | (103) | ||||||||
Income (loss) from continuing operations | (238) | 1,907 | 3,319 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income (loss) | (238) | 1,907 | 3,319 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | (238) | 1,907 | 3,319 | ||||||||
Other Subsidiaries | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Other income | 52,875 | 58,953 | 63,157 | ||||||||
Total revenues | 52,875 | 58,953 | 63,157 | ||||||||
Expenses: | |||||||||||
Interest expense | 227 | 302 | 243 | ||||||||
Net (gains) losses on extinguishment of debt | (3) | 46 | 85 | ||||||||
Other expenses | 51,819 | 52,374 | 48,315 | ||||||||
Total benefits, losses and expenses | 52,043 | 52,722 | 48,643 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 832 | 6,231 | 14,514 | ||||||||
Income tax expense (benefit) | 1,507 | 2,218 | 4,817 | ||||||||
Income (loss) from continuing operations | (675) | 4,013 | 9,697 | ||||||||
Income (loss) from discontinued operations, net of income taxes | (53) | 2 | (37) | ||||||||
Net income (loss) | (728) | 4,015 | 9,660 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 500 | 26 | (5) | ||||||||
Net income (loss) attributable to AIG | (1,228) | 3,989 | 9,665 | ||||||||
Reclassification and Eliminations [Member] | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 1,466 | (5,890) | (12,969) | ||||||||
Other income | (1,029) | (714) | (409) | ||||||||
Total revenues | 437 | (6,604) | (13,378) | ||||||||
Expenses: | |||||||||||
Interest expense | (6) | (128) | (132) | ||||||||
Net (gains) losses on extinguishment of debt | 0 | 7 | (51) | ||||||||
Other expenses | (1,023) | (587) | (159) | ||||||||
Total benefits, losses and expenses | (1,029) | (708) | (342) | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 1,466 | (5,896) | (13,036) | ||||||||
Income tax expense (benefit) | 0 | 0 | (52) | ||||||||
Income (loss) from continuing operations | 1,466 | (5,896) | (12,984) | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income (loss) | 1,466 | (5,896) | (12,984) | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | $ 1,466 | $ (5,896) | $ (12,984) |
INFORMATION PROVIDED IN CONN163
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | $ (2,506) | $ 436 | $ 1,924 | $ (203) | $ (1,849) | $ (197) | $ 1,791 | $ 2,477 | $ (349) | $ 2,222 | $ 7,524 |
Other Comprehensive Income (Loss) | 693 | (8,086) | 4,257 | ||||||||
Comprehensive income (loss) | 344 | (5,864) | 11,781 | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 500 | 20 | (5) | ||||||||
Comprehensive income (loss) attributable to AIG | (156) | (5,884) | 11,786 | ||||||||
AIG (As Guarantor) | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | (849) | 2,196 | 7,529 | ||||||||
Other Comprehensive Income (Loss) | 693 | (8,080) | 4,257 | ||||||||
Comprehensive income (loss) | (156) | (5,884) | 11,786 | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | (156) | (5,884) | 11,786 | ||||||||
AIGLH | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | (238) | 1,907 | 3,319 | ||||||||
Other Comprehensive Income (Loss) | 4,080 | 2,320 | 2,794 | ||||||||
Comprehensive income (loss) | 3,842 | 4,227 | 6,113 | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | 3,842 | 4,227 | 6,113 | ||||||||
Other Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | (728) | 4,015 | 9,660 | ||||||||
Other Comprehensive Income (Loss) | 52,153 | 54,757 | 3,235 | ||||||||
Comprehensive income (loss) | 51,425 | 58,772 | 12,895 | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 500 | 20 | (5) | ||||||||
Comprehensive income (loss) attributable to AIG | 50,925 | 58,752 | 12,900 | ||||||||
Reclassification and Eliminations [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | 1,466 | (5,896) | (12,984) | ||||||||
Other Comprehensive Income (Loss) | (56,233) | (57,083) | (6,029) | ||||||||
Comprehensive income (loss) | (54,767) | (62,979) | (19,013) | ||||||||
Total comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | $ (54,767) | $ (62,979) | $ (19,013) |
INFORMATION PROVIDED IN CONN164
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 2,383 | $ 2,877 | $ 5,007 |
Cash flows from investing activities: | |||
Sales of investments | 75,644 | 72,616 | 66,104 |
Proceeds from divested businesses, net | 2,809 | 2,348 | |
Purchase of investments | (69,985) | (65,265) | (58,110) |
Loans to subsidiaries - net | 0 | 0 | |
Contributions from (to) subsidiaries - net | 0 | 0 | |
Net change in restricted cash | 385 | 1,457 | (1,447) |
Net change in short-term investments | (3,089) | 1,163 | 8,760 |
Other, net | (1,020) | (1,509) | (1,023) |
Net cash provided by (used in) investing activities | 4,744 | 8,462 | 14,284 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 5,954 | 6,867 | 6,687 |
Repayments of long-term debt | (4,082) | (9,805) | (16,160) |
Purchase of Common Stock | (11,460) | (10,691) | (4,902) |
Cash dividends paid | (1,372) | (1,028) | (712) |
Other, net | 4,127 | 3,228 | (4,701) |
Net cash provided by (used in) financing activities | (6,833) | (11,429) | (19,788) |
Effect of exchange rate changes on cash | 52 | (39) | (74) |
Net increase (decrease) in cash | 346 | (129) | (571) |
Cash at beginning of year | 1,629 | 1,758 | 2,241 |
Change in cash of businesses held for sale | (107) | 0 | 88 |
Reclassification to assets held for sale | 0 | 88 | |
Cash at end of year | 1,868 | 1,629 | 1,758 |
Interest: | |||
Third party | (1,331) | (1,368) | (3,367) |
Intercompany | 0 | 0 | 0 |
Taxes: | |||
Income tax authorities | (493) | (511) | (737) |
Intercompany | 0 | 0 | 0 |
Aer Cap | |||
Non-cash financing and investing activities: | |||
Non-cash consideration received from sale | 500 | ||
United Guaranty Corporation [Member] | |||
Non-cash financing and investing activities: | |||
Non-cash consideration received from sale | 1,101 | ||
AIG (As Guarantor) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 2,112 | 4,443 | 9,316 |
Cash flows from investing activities: | |||
Sales of investments | 5,769 | 7,767 | 3,036 |
Proceeds from divested businesses, net | 2,160 | ||
Purchase of investments | (1,002) | (1,881) | (1,051) |
Loans to subsidiaries - net | 1,525 | (83) | 446 |
Contributions from (to) subsidiaries - net | 1,637 | 565 | (148) |
Net change in restricted cash | 0 | 0 | (501) |
Net change in short-term investments | (789) | 2,300 | 5,792 |
Other, net | (141) | (175) | (141) |
Net cash provided by (used in) investing activities | 9,159 | 8,493 | 7,433 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 3,831 | 5,540 | 3,247 |
Repayments of long-term debt | (1,996) | (6,504) | (14,468) |
Proceeds from drawdown on the Department of the Treasury Commitment | 0 | 0 | |
Issuance of Common Stock | 0 | 0 | 0 |
Purchase of Common Stock | (11,460) | (10,691) | (4,902) |
Intercompany loans - net | 3 | (201) | 110 |
Cash dividends paid | (1,372) | (1,028) | (712) |
Other, net | (309) | (44) | (28) |
Net cash provided by (used in) financing activities | (11,303) | (12,928) | (16,753) |
Net increase (decrease) in cash | (32) | 8 | (4) |
Cash at beginning of year | 34 | 26 | 30 |
Cash at end of year | 2 | 34 | 26 |
Interest: | |||
Third party | (975) | (1,030) | (1,624) |
Intercompany | 2 | 0 | 5 |
Taxes: | |||
Income tax authorities | (15) | (11) | (18) |
Intercompany | 479 | 829 | 1,172 |
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 | 0 | ||
Capital contributions to subsidiaries through forgiveness of loans | 0 | ||
Return of capital | 0 | 0 | 4,836 |
Return of capital and dividend received in the form of cancellation of intercompany loan | 0 | ||
Return of capital and dividend received in the form of other bonds securities | 5,234 | 2,326 | 3,088 |
Other capital contributions - net | 3,245 | 494 | 2,457 |
Fixed maturity securities received in exchange for equity securities | 440 | ||
AIGLH | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 1,707 | 2,314 | 6,155 |
Cash flows from investing activities: | |||
Sales of investments | 0 | 0 | 0 |
Proceeds from divested businesses, net | 0 | 0 | |
Purchase of investments | 0 | 0 | 0 |
Loans to subsidiaries - net | 0 | 0 | 0 |
Contributions from (to) subsidiaries - net | 0 | 0 | 0 |
Net change in restricted cash | 0 | 0 | 0 |
Net change in short-term investments | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | (63) | (114) | (477) |
Issuance of Common Stock | 0 | 0 | |
Purchase of Common Stock | 0 | 0 | |
Intercompany loans - net | (3) | 3 | (280) |
Cash dividends paid | (1,723) | (2,178) | (5,358) |
Other, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities - continuing operations | (2,289) | (6,115) | |
Net cash provided by (used in) financing activities | (1,789) | (2,289) | (6,115) |
Net increase (decrease) in cash | (82) | 25 | 40 |
Cash at beginning of year | 116 | 91 | 51 |
Cash at end of year | 34 | 116 | 91 |
Interest: | |||
Third party | (52) | (59) | (87) |
Intercompany | 0 | 0 | (7) |
Taxes: | |||
Intercompany | 0 | 0 | 0 |
Other Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 2,515 | 1,112 | 8,979 |
Cash flows from investing activities: | |||
Sales of investments | 81,560 | 69,726 | 65,108 |
Proceeds from divested businesses, net | 649 | 0 | |
Purchase of investments | (80,668) | (68,261) | (59,099) |
Loans to subsidiaries - net | (3) | 367 | 169 |
Contributions from (to) subsidiaries - net | 0 | 0 | 296 |
Net change in restricted cash | 385 | 1,457 | (946) |
Net change in short-term investments | (2,300) | (1,137) | 2,968 |
Other, net | (879) | (1,334) | (882) |
Net cash provided by (used in) investing activities | (1,256) | 818 | 7,614 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 2,123 | 1,327 | 3,440 |
Repayments of long-term debt | (2,023) | (3,187) | (1,215) |
Issuance of Common Stock | 0 | 0 | |
Purchase of Common Stock | 0 | 0 | |
Intercompany loans - net | (1,522) | (86) | (445) |
Cash dividends paid | (2,228) | (2,814) | (14,085) |
Other, net | 2,799 | 2,707 | (4,821) |
Net cash provided by (used in) financing activities | (851) | (2,053) | (17,126) |
Effect of exchange rate changes on cash | 52 | (39) | (74) |
Net increase (decrease) in cash | 460 | (162) | (607) |
Cash at beginning of year | 1,479 | 1,641 | 2,160 |
Change in cash of businesses held for sale | (107) | ||
Reclassification to assets held for sale | 0 | 88 | |
Cash at end of year | 1,832 | 1,479 | 1,641 |
Interest: | |||
Third party | (304) | (279) | (1,656) |
Intercompany | (2) | 0 | 2 |
Taxes: | |||
Income tax authorities | (478) | (500) | (719) |
Intercompany | (479) | (829) | (1,172) |
AIG Capital Corporation [Member] | |||
Non-cash financing and investing activities: | |||
Return of capital | 4,800 | ||
Reclassification and Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | (3,951) | (4,992) | (19,443) |
Cash flows from investing activities: | |||
Sales of investments | (11,685) | (4,877) | (2,040) |
Proceeds from divested businesses, net | 0 | 0 | 0 |
Purchase of investments | 11,685 | 4,877 | 2,040 |
Loans to subsidiaries - net | (1,522) | (284) | (615) |
Contributions from (to) subsidiaries - net | (1,637) | (565) | (148) |
Net change in restricted cash | 0 | 0 | 0 |
Net change in short-term investments | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | (3,159) | (849) | (763) |
Cash flows from financing activities: | |||
Issuance of long-term debt | 0 | 0 | 0 |
Repayments of long-term debt | 0 | 0 | 0 |
Issuance of Common Stock | 0 | 0 | 0 |
Purchase of Common Stock | 0 | 0 | 0 |
Intercompany loans - net | 1,522 | 284 | 615 |
Cash dividends paid | 3,951 | 4,992 | 19,443 |
Other, net | 1,637 | 565 | 148 |
Net cash provided by (used in) financing activities | 7,110 | 5,841 | 20,206 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net increase (decrease) in cash | 0 | 0 | |
Cash at beginning of year | 0 | 0 | 0 |
Reclassification to assets held for sale | 0 | 0 | |
Cash at end of year | 0 | 0 | 0 |
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 ($) | Feb. 14, 2017 | Jan. 20, 2017 | Dec. 22, 2016 | Sep. 29, 2016 | Jun. 27, 2016 | Mar. 28, 2016 | Dec. 21, 2015 | Sep. 28, 2015 | Jun. 25, 2015 | Mar. 26, 2015 | Dec. 18, 2014 | Sep. 25, 2014 | Jun. 24, 2014 | Mar. 25, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 02, 2016 |
Subsequent Event [Line Items] | ||||||||||||||||||
Dividends declared per common share | $ 1.28 | $ 0.81 | $ 0.5 | |||||||||||||||
Authorized amount of common Stock share repurchase | $ 3,000,000,000 | |||||||||||||||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 2,500,000,000 | $ 4,400,000,000 | ||||||||||||||||
Date of Shareholders of Record | Dec. 8, 2016 | Sep. 15, 2016 | Jun. 13, 2016 | Mar. 14, 2016 | Dec. 7, 2015 | Sep. 14, 2015 | Jun. 11, 2015 | Mar. 12, 2015 | Dec. 4, 2014 | Sep. 11, 2014 | Jun. 10, 2014 | Mar. 11, 2014 | ||||||
Subsequent event | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Dividends declared per common share | $ 0.32 | |||||||||||||||||
Authorized amount of common Stock share repurchase | $ 3,500,000,000 | |||||||||||||||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 4,700,000,000 | |||||||||||||||||
Date Dividends Declared | Feb. 14, 2017 | |||||||||||||||||
Date Dividends To Be Paid | Mar. 29, 2017 | |||||||||||||||||
Date of Shareholders of Record | Mar. 15, 2017 | |||||||||||||||||
Subsequent event | NICO [Member] | ||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||
Reinsurance Ceded, Percent | 80.00% | |||||||||||||||||
Reinsurance ceded attachment point | $ 25,000,000,000 | |||||||||||||||||
Reinsurance limit above attachment point | 25,000,000,000 | |||||||||||||||||
Reinsurance Recoverables Aggregate Limit | 20,000,000,000 | |||||||||||||||||
Consideration paid | $ 9,800,000,000 | |||||||||||||||||
Interest rate, percent | 4.00% |
Schedule I Summary of Invest166
Schedule I Summary of Investments - Other than Investments in Related Parties (Details) $ in Millions | Dec. 31, 2016USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $ 320,118 |
Fair Value | 330,026 |
Amount at which shown in the Balance Sheet | 329,984 |
Fixed maturity securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 246,239 |
Fair Value | 255,535 |
Amount at which shown in the Balance Sheet | 255,535 |
U.S. government and government sponsored entities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 4,809 |
Fair Value | 4,932 |
Amount at which shown in the Balance Sheet | 4,932 |
Obligations of states, municipalities and political subdivisions | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 24,026 |
Fair Value | 24,772 |
Amount at which shown in the Balance Sheet | 24,772 |
Non-U.S. government | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 14,068 |
Fair Value | 14,585 |
Amount at which shown in the Balance Sheet | 14,585 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 17,094 |
Fair Value | 18,018 |
Amount at which shown in the Balance Sheet | 18,018 |
All other corporate and debt securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 111,326 |
Fair Value | 115,934 |
Amount at which shown in the Balance Sheet | 115,934 |
Mortgage-backed, asset-backed and collateralized | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 74,916 |
Fair Value | 77,294 |
Amount at which shown in the Balance Sheet | 77,294 |
Equity securities and mutual funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 2,179 |
Fair Value | 2,560 |
Amount at which shown in the Balance Sheet | 2,560 |
Common Stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,148 |
Fair Value | 1,506 |
Amount at which shown in the Balance Sheet | 1,506 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 3 |
Fair Value | 4 |
Amount at which shown in the Balance Sheet | 4 |
Banks, trust and insurance companies | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 900 |
Fair Value | 1,108 |
Amount at which shown in the Balance Sheet | 1,108 |
Industrial, miscellaneous and all other | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 245 |
Fair Value | 394 |
Amount at which shown in the Balance Sheet | 394 |
Preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 748 |
Fair Value | 752 |
Amount at which shown in the Balance Sheet | 752 |
Mutual funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 283 |
Fair Value | 302 |
Amount at which shown in the Balance Sheet | 302 |
Mortgage and other loans receivable, net of allowance | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 33,240 |
Fair Value | 33,747 |
Amount at which shown in the Balance Sheet | 33,240 |
Other invested assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 24,349 |
Fair Value | 24,073 |
Amount at which shown in the Balance Sheet | 24,538 |
Short-term investments, at cost | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 12,302 |
Fair Value | 12,302 |
Amount at which shown in the Balance Sheet | 12,302 |
Derivative assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,809 |
Fair Value | 1,809 |
Amount at which shown in the Balance Sheet | $ 1,809 |
Schedule II Condensed Financ167
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Balance Sheets) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | ||||
Short-term investments | $ 12,302 | $ 10,132 | ||
Other Investments | 24,538 | 29,794 | ||
Total investments | 328,175 | 338,354 | ||
Cash | 1,868 | 1,629 | $ 1,758 | $ 2,241 |
Loans to subsidiaries | 0 | |||
Deferred income taxes | 21,332 | 20,394 | ||
Investment in consolidated subsidiaries | 0 | |||
Other assets | 10,815 | 11,289 | ||
Total assets | 498,264 | 496,842 | ||
Liabilities: | ||||
Outstanding debt | 30,912 | 29,249 | ||
Loans from subsidiaries | 0 | |||
Total liabilities | 421,406 | 406,632 | ||
AIG Shareholders' equity: | ||||
Common stock | 4,766 | 4,766 | ||
Treasury stock | (41,471) | (30,098) | ||
Additional paid-in capital | 81,064 | 81,510 | ||
Retained earnings | 28,711 | 30,943 | ||
Accumulated other comprehensive income (loss) | 3,230 | 2,537 | 10,617 | 6,360 |
Total AIG shareholders' equity | 76,300 | 89,658 | ||
Total liabilities and equity | 498,264 | 496,842 | ||
Parent Company [Member] | ||||
Assets: | ||||
Short-term investments | 4,424 | 4,042 | ||
Other Investments | 7,154 | 7,425 | ||
Total investments | 11,578 | 11,467 | ||
Cash | 2 | 34 | $ 26 | $ 30 |
Loans to subsidiaries | 34,692 | 35,927 | ||
Due from affiliates - net | 3,460 | 1,967 | ||
Intercompany tax receivable | 5,129 | 3,234 | ||
Deferred income taxes | 15,169 | 17,564 | ||
Investment in consolidated subsidiaries | 42,582 | 51,151 | ||
Other assets | 341 | 534 | ||
Total assets | 112,953 | 121,878 | ||
Liabilities: | ||||
Outstanding debt | 21,405 | 19,777 | ||
Loans from subsidiaries | 577 | 574 | ||
Other liabilities (includes intercompany derivative liabilities of $144 in 2015 and $275 in 2014) | 4,436 | 3,885 | ||
Total liabilities | 36,653 | 32,220 | ||
Intercompany derivative liabilities | 419 | 144 | ||
Due to affiliate | 6,083 | 4,059 | ||
Loans and mortgages payable | 0 | 0 | ||
Intercompany tax payable | 4,152 | 3,916 | ||
Deferred tax liabilities | 0 | 9 | ||
AIG Shareholders' equity: | ||||
Common stock | 4,766 | 4,766 | ||
Treasury stock | (41,471) | (30,098) | ||
Additional paid-in capital | 81,064 | 81,510 | ||
Retained earnings | 28,711 | 30,943 | ||
Accumulated other comprehensive income (loss) | 3,230 | 2,537 | ||
Total AIG shareholders' equity | 76,300 | 89,658 | ||
Total liabilities and equity | 112,953 | 121,878 | ||
Parent Company [Member] | Series AIGFP | ||||
Liabilities: | ||||
Outstanding debt | 31 | 31 | ||
Parent Company [Member] | MIP | ||||
Liabilities: | ||||
Outstanding debt | 1,099 | 1,372 | ||
Parent Company [Member] | Notes and bonds payable | ||||
Liabilities: | ||||
Outstanding debt | 19,432 | 17,047 | ||
Parent Company [Member] | Junior subordinated debt | ||||
Liabilities: | ||||
Outstanding debt | $ 843 | $ 1,327 |
Schedule II Condensed Financ168
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Income) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||||||||||
Net realized capital gains (losses) | $ (1,944) | $ 776 | $ 739 | ||||||||
Other income | 3,121 | 4,088 | 6,117 | ||||||||
Expenses | |||||||||||
Interest expense | 1,260 | 1,281 | 1,718 | ||||||||
Net (gains) losses on extinguishment of debt | $ (2) | $ (14) | $ 7 | $ 83 | $ 0 | $ 346 | $ 342 | $ 68 | 74 | 756 | 2,282 |
Net (gain) loss on sale of properties and divested businesses | 194 | 128 | 225 | (2) | (1) | (3) | (1) | (6) | (545) | 11 | (2,197) |
Income from continuing operations before income tax expense (benefit) | (3,455) | 737 | 2,858 | (214) | (2,932) | (115) | 2,552 | 3,776 | (74) | 3,281 | 10,501 |
Income tax expense (benefit) | 185 | 1,059 | 2,927 | ||||||||
Net income (loss) attributable to AIG common shareholders from continuing operations | (759) | 2,196 | 7,579 | ||||||||
Income (loss) from discontinued operations | (36) | 3 | (10) | (47) | 0 | (17) | 16 | 1 | (90) | 0 | (50) |
Net income (loss) attributable to AIG | (3,041) | $ 462 | $ 1,913 | $ (183) | $ (1,841) | $ (231) | $ 1,800 | $ 2,468 | (849) | 2,196 | 7,529 |
United Guaranty | |||||||||||
Expenses | |||||||||||
Net (gain) loss on sale of properties and divested businesses | $ (697) | ||||||||||
Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Equity in undistributed net income (loss) of consolidated subsidiaries | (8,633) | (2,929) | (5,573) | ||||||||
Dividend income from consolidated subsidiaries | 7,364 | 6,883 | 15,023 | ||||||||
Interest income | 411 | 342 | 305 | ||||||||
Net realized capital gains (losses) | 2 | (587) | 8 | ||||||||
Other income | 103 | 333 | 1,345 | ||||||||
Expenses | |||||||||||
Interest expense | 988 | 1,049 | 1,507 | ||||||||
Net (gains) losses on extinguishment of debt | 77 | 703 | 2,248 | ||||||||
Net (gain) loss on sale of properties and divested businesses | (690) | 11 | (42) | ||||||||
Other expenses | 985 | 1,167 | 1,588 | ||||||||
Income from continuing operations before income tax expense (benefit) | (2,113) | 1,112 | 5,807 | ||||||||
Income tax expense (benefit) | (1,301) | (1,086) | (1,735) | ||||||||
Net income (loss) attributable to AIG common shareholders from continuing operations | (812) | 2,198 | 7,542 | ||||||||
Income (loss) from discontinued operations | (37) | (2) | (13) | ||||||||
Net income (loss) attributable to AIG | $ (849) | $ 2,196 | $ 7,529 |
Schedule II Condensed Financ169
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ (3,041) | $ 462 | $ 1,913 | $ (183) | $ (1,841) | $ (231) | $ 1,800 | $ 2,468 | $ (849) | $ 2,196 | $ 7,529 |
Other Comprehensive Income (Loss) | 693 | (8,086) | 4,257 | ||||||||
Comprehensive income (loss) attributable to AIG | (156) | (5,884) | 11,786 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | (849) | 2,196 | 7,529 | ||||||||
Other Comprehensive Income (Loss) | 693 | (8,080) | 4,257 | ||||||||
Comprehensive income (loss) attributable to AIG | $ (156) | $ (5,884) | $ 11,786 |
Schedule II Condensed Financ170
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Cash Flows) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 2,383 | $ 2,877 | $ 5,007 |
Cash flows from investing activities: | |||
Proceeds from divested businesses, net | 2,809 | 2,348 | |
Purchase of investments | (69,985) | (65,265) | (58,110) |
Net change in restricted cash | 385 | 1,457 | (1,447) |
Net change in short-term investments | (3,089) | 1,163 | 8,760 |
Contributions from (to) subsidiaries - net | 0 | 0 | |
Mortgage and other loans receivable | (10,651) | (10,140) | (8,008) |
Payments received on mortgages and other loan receivables | 6,074 | 5,104 | 3,856 |
Loans to subsidiaries - net | 0 | 0 | |
Other, net | (1,020) | (1,509) | (1,023) |
Net cash provided by (used in) investing activities | 4,744 | 8,462 | 14,284 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 5,954 | 6,867 | 6,687 |
Repayments of long-term debt | (4,082) | (9,805) | (16,160) |
Cash dividends paid | (1,372) | (1,028) | (712) |
Purchase of Common Stock | (11,460) | (10,691) | (4,902) |
Other, net | (68) | (818) | 6,420 |
Net cash provided by (used in) financing activities | (6,833) | (11,429) | (19,788) |
Net increase (decrease) in cash | 346 | (129) | (571) |
Cash at beginning of year | 1,629 | 1,758 | 2,241 |
Cash at end of year | 1,868 | 1,629 | 1,758 |
Interest: | |||
Third party | (1,331) | (1,368) | (3,367) |
Intercompany | 0 | 0 | 0 |
Taxes: | |||
Income tax authorities | (493) | (511) | (737) |
Intercompany | 0 | 0 | 0 |
Aer Cap | |||
Non-cash investing/financing activities: | |||
Non-cash consideration received from sale | 500 | ||
UGC | |||
Non-cash investing/financing activities: | |||
Non-cash consideration received from sale | 1,101 | ||
Parent Company [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 2,112 | 4,443 | 9,316 |
Cash flows from investing activities: | |||
Sales and maturities of investments | 5,598 | 7,609 | 2,996 |
Proceeds from divested businesses, net | 2,160 | ||
Purchase of investments | (1,002) | (1,881) | (1,051) |
Net change in restricted cash | 0 | 0 | (501) |
Net change in short-term investments | (789) | 2,300 | 5,792 |
Contributions from (to) subsidiaries - net | 1,637 | 565 | (148) |
Mortgage and other loans receivable | (85) | ||
Payments received on mortgages and other loan receivables | 171 | 158 | 40 |
Loans to subsidiaries - net | 1,525 | (83) | 446 |
Other, net | (56) | (175) | (141) |
Net cash provided by (used in) investing activities | 9,159 | 8,493 | 7,433 |
Cash flows from financing activities: | |||
Issuance of long-term debt | 3,831 | 5,540 | 3,247 |
Repayments of long-term debt | (1,996) | (6,504) | (14,468) |
Proceeds from drawdown on the Department of the Treasury Commitment | 0 | 0 | |
Issuance of Common Stock | 0 | 0 | 0 |
Cash dividends paid | (1,372) | (1,028) | (712) |
Loans from subsidiaries - net | 3 | (201) | 110 |
Purchase of Common Stock | (11,460) | (10,691) | (4,902) |
Other, net | (309) | (44) | (28) |
Net cash provided by (used in) financing activities | (11,303) | (12,928) | (16,753) |
Net increase (decrease) in cash | (32) | 8 | (4) |
Cash at beginning of year | 34 | 26 | 30 |
Cash at end of year | 2 | 34 | 26 |
Interest: | |||
Third party | (975) | (1,030) | (1,624) |
Intercompany | 2 | 0 | 5 |
Taxes: | |||
Income tax authorities | (15) | (11) | (18) |
Intercompany | 479 | 829 | 1,172 |
Non-cash investing/financing activities: | |||
Capital contributions in the form of available for sale securities | 0 | ||
Capital contributions to subsidiaries through forgiveness of loans | 0 | ||
Other capital contributions - net | 3,245 | 494 | 2,457 |
Return of capital | 0 | 0 | 4,836 |
Return of capital and dividend received in the form of cancellation of intercompany loan | 0 | ||
Return of capital and dividend received in the form of other bonds securities | 5,234 | 2,326 | 3,088 |
Fixed maturity securities received in exchange for equity securities | $ 440 | ||
Payment of accrued compounded interest of FRBNY Credit Facility | $ 0 | ||
AIG Capital Corporation [Member] | |||
Non-cash investing/financing activities: | |||
Return of capital | $ 4,800 |
Schedule III Supplementary I171
Schedule III Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | $ 11,042 | $ 11,115 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits | 119,281 | 118,527 | |
Reserve for Unearned Premiums | 19,634 | 21,318 | |
Policy and Contract Claims | 847 | 862 | |
Premiums and Policy Fees | 37,125 | 39,410 | $ 39,869 |
Net Investment Income | 14,065 | 14,053 | 16,079 |
Losses and Loss Expenses Incurred, Benefits | 36,142 | 35,076 | 32,049 |
Amortization of Deferred Policy Acquisition Costs | 4,521 | 5,236 | 5,330 |
Other Operating Expenses | 8,682 | 10,434 | 10,489 |
Net Premiums Written | 29,233 | 33,066 | 34,456 |
Commercial Insurance [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Policy Fees | 18,100 | 19,715 | 20,407 |
Net Investment Income | 3,268 | 3,421 | 4,255 |
Losses and Loss Expenses Incurred, Benefits | 18,828 | 16,660 | 14,226 |
Amortization of Deferred Policy Acquisition Costs | 2,049 | 2,349 | 2,497 |
Other Operating Expenses | 3,226 | 3,562 | 3,692 |
Net Premiums Written | 16,928 | 20,616 | 20,773 |
Consumer Insurance [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Policy Fees | 15,426 | 15,070 | 15,791 |
Net Investment Income | 7,345 | 7,356 | 7,924 |
Losses and Loss Expenses Incurred, Benefits | 12,063 | 11,967 | 12,055 |
Amortization of Deferred Policy Acquisition Costs | 2,681 | 2,762 | 2,655 |
Other Operating Expenses | 5,456 | 6,872 | 6,797 |
Net Premiums Written | 11,465 | 11,583 | 12,408 |
Other Operations | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Policy Fees | 2,783 | 3,455 | 2,457 |
Net Investment Income | 539 | 348 | 655 |
Losses and Loss Expenses Incurred, Benefits | 1,900 | 2,845 | 2,299 |
Amortization of Deferred Policy Acquisition Costs | (317) | 23 | 97 |
Other Operating Expenses | 0 | 0 | 0 |
Net Premiums Written | 819 | 668 | 1,032 |
Legacy portfolio [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Policy Fees | 816 | 1,170 | 1,214 |
Net Investment Income | 2,913 | 2,928 | 3,245 |
Losses and Loss Expenses Incurred, Benefits | 3,351 | 3,604 | 3,469 |
Amortization of Deferred Policy Acquisition Costs | 108 | 102 | 81 |
Other Operating Expenses | 0 | 0 | 0 |
Net Premiums Written | 21 | 199 | $ 243 |
Property Casualty Insurance Companies [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 2,563 | 2,631 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits | 71,812 | 69,213 | |
Reserve for Unearned Premiums | 19,348 | 20,961 | |
Policy and Contract Claims | 0 | 0 | |
Life Insurance Companies [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 8,466 | 8,467 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits | 41,384 | 42,893 | |
Reserve for Unearned Premiums | 0 | 0 | |
Policy and Contract Claims | 836 | 851 | |
Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 13 | 17 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits | 6,085 | 6,421 | |
Reserve for Unearned Premiums | 286 | 357 | |
Policy and Contract Claims | $ 11 | $ 11 |
Schedule IV Reinsurance (Detail
Schedule IV Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 38,579 | $ 42,931 | $ 43,425 |
Ceded to Other Companies | 8,350 | 8,360 | 8,979 |
Assumed from Other Companies | 2,947 | 2,979 | 3,419 |
Net Amount | $ 33,176 | $ 37,550 | $ 37,865 |
Percent of Amount Assumed to Net | 8.90% | 7.90% | 9.00% |
Long-duration insurance in force | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount, Long-duration insurance in force | $ 1,025,653 | $ 1,051,571 | $ 1,033,281 |
Long-duration insurance in force ceded | 174,363 | 177,025 | 180,178 |
Contracts in Force Assumed | 339 | 372 | 410 |
Net Amount, Long-duration insurance in force | $ 851,629 | $ 874,918 | $ 853,513 |
Percent of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Property Casualty Insurance Companies [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 33,970 | $ 37,698 | $ 39,375 |
Ceded to Other Companies | 7,561 | 7,604 | 8,318 |
Assumed from Other Companies | 2,824 | 2,972 | 3,399 |
Net Amount | $ 29,233 | $ 33,066 | $ 34,456 |
Percent of Amount Assumed to Net | 9.70% | 9.00% | 9.90% |
Life Insurance Companies [Member] | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 4,609 | $ 5,233 | $ 4,050 |
Ceded to Other Companies | 789 | 756 | 661 |
Assumed from Other Companies | 123 | 7 | 20 |
Net Amount | $ 3,943 | $ 4,484 | $ 3,409 |
Percent of Amount Assumed to Net | 3.10% | 0.20% | 0.60% |
Schedule V Valuation and Qua173
Schedule V Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for mortgage and other loans receivable | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | $ 308 | $ 271 | $ 312 |
Charged to costs and expenses | (7) | 58 | (8) |
Charge offs | (15) | (29) | (68) |
Reclassified to assets of businesses held-for-sale | 0 | 0 | 0 |
Divested Business | 0 | 3 | 1 |
Other changes | 11 | 5 | 34 |
Balance at the end of the year | 297 | 308 | 271 |
Allowance for mortgage and other loans receivable | Segment Discontinued Operations | |||
Valuation and Qualifying Accounts | |||
Net change | 0 | 0 | |
Allowance for premiums and insurances balances receivable | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 333 | 431 | 560 |
Charged to costs and expenses | 26 | 35 | 35 |
Charge offs | (88) | (120) | (99) |
Reclassified to assets of businesses held-for-sale | (2) | 0 | 0 |
Divested Business | (7) | 0 | 0 |
Other changes | 0 | (13) | (65) |
Balance at the end of the year | 262 | 333 | 431 |
Allowance for reinsurance assets | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 272 | 258 | 276 |
Charged to costs and expenses | (23) | 90 | 4 |
Charge offs | (34) | (67) | (3) |
Reclassified to assets of businesses held-for-sale | (8) | 0 | 0 |
Divested Business | 0 | 0 | 0 |
Other changes | 0 | (9) | (19) |
Balance at the end of the year | 207 | 272 | 258 |
Federal and foreign valuation allowance for deferred tax assets | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 3,012 | 1,739 | 3,596 |
Charged to costs and expenses | 83 | 110 | (181) |
Charge offs | 0 | 0 | 0 |
Reclassified to assets of businesses held-for-sale | 0 | 0 | 0 |
Divested Business | 0 | 0 | 0 |
Other changes | (264) | 1,163 | (1,676) |
Balance at the end of the year | 2,831 | 3,012 | 1,739 |
Federal and foreign valuation allowance for deferred tax assets | Segment Discontinued Operations | |||
Valuation and Qualifying Accounts | |||
Net change | $ 0 | $ 0 | $ 0 |