Document and Entity Information
Document and Entity Information - USD ($) | Feb. 10, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Entity Listings [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | American International Group, Inc. | ||
Entity Central Index Key | 0000005272 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock Shares Outstanding | 873,422,023 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 1-8787 | ||
Entity Incorporation State Country Code | DE | ||
Entity Tax Identification Number | 13-2592361 | ||
Entity Address Address Line 1 | 175 Water Street | ||
Entity Address City Or Town | New York | ||
Entity Address State Or Province | NY | ||
Entity Address Postal Zip Code | 10038 | ||
City Area Code | 212 | ||
Local Phone Number | 770-7000 | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
Entity Voluntary Filers | No | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Public Float | $ 46,348,000,000 | ||
Documents Incorporated By Reference | Document of the Registrant Form 10-K Reference Locations Portions of the registrant’s definitive proxy statement for the 2020 Annual Meeting of Shareholders Part II, Item 5 and Part III, Items 10, 11, 12, 13 and 14 | ||
Common Stock | |||
Entity Listings [Line Items] | |||
Security 12b Title | Common Stock, Par Value $2.50 Per Share | ||
Entity Listing Par Value Per Share | $ 2.50 | ||
Trading Symbol | AIG | ||
Security Exchange Name | NYSE | ||
Warrants | |||
Entity Listings [Line Items] | |||
Security 12b Title | Warrants (expiring January 19, 2021) | ||
Trading Symbol | AIG WS | ||
Security Exchange Name | NYSE | ||
5.75% Series A-2 Junior Sebordinated Debentures | |||
Entity Listings [Line Items] | |||
Security 12b Title | 5.75% Series A-2 Junior Subordinated Debentures | ||
Trading Symbol | AIG 67BP | ||
Security Exchange Name | NYSE | ||
4.875% Series A-3 Junior Subordinated Debentures | |||
Entity Listings [Line Items] | |||
Security 12b Title | 4.875% Series A-3 Junior Subordinated Debentures | ||
Trading Symbol | AIG 67EU | ||
Security Exchange Name | NYSE | ||
Stock Purchase Rights | |||
Entity Listings [Line Items] | |||
Security 12b Title | Stock Purchase Rights | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NYSE | ||
Depository Shares Each Representing 1/1,000th Interest in a Share of Series A 5.85% Non-Cumulative Perpetual Preferred Stock | |||
Entity Listings [Line Items] | |||
Security 12b Title | Depositary Shares Each Representing a 1/1,000th Interest in a Share of Series A 5.85% Non-Cumulative Perpetual Preferred Stock | ||
Trading Symbol | AIG PRA | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed maturity securities: | ||
Bonds available for sale, at fair value (amortized cost: 2019 - $233,230; 2018 - $225,780) | $ 251,086,000,000 | $ 229,391,000,000 |
Other bond securities, at fair value (See Note 7) | 6,682,000,000 | 11,415,000,000 |
Equity Securities, at fair value (See Note 7) | 841,000,000 | 1,253,000,000 |
Mortgage and other loans receivable, net of allowance | 46,984,000,000 | 43,135,000,000 |
Other invested assets (portion measured at fair value: 2019 - $6,827; 2018 - $5,894) | 18,792,000,000 | 19,341,000,000 |
Short-term investments, including restricted cash of $188 in 2019 and $142 in 2018 (portion measured at fair value: 2019 - $5,343; 2018 - $3,015) | 13,230,000,000 | 9,674,000,000 |
Total investments | 337,615,000,000 | 314,209,000,000 |
Cash | 2,856,000,000 | 2,873,000,000 |
Accrued investment income | 2,334,000,000 | 2,389,000,000 |
Premiums and other receivables, net of allowance | 10,274,000,000 | 11,011,000,000 |
Reinsurance assets, net of allowance | 37,977,000,000 | 38,172,000,000 |
Deferred income taxes | 13,146,000,000 | 15,221,000,000 |
Deferred policy acquisition costs | 11,207,000,000 | 12,694,000,000 |
Other assets, including restricted cash of $243 in 2019 and $343 in 2018 (portion measured at fair value: 2019 - $3,151; 2018 - $973) | 16,383,000,000 | 13,568,000,000 |
Separate account assets, at fair value | 93,272,000,000 | 81,847,000,000 |
Total assets | 525,064,000,000 | 491,984,000,000 |
Liabilities: | ||
Liability for unpaid losses and loss adjustment expenses | 78,328,000,000 | 83,639,000,000 |
Unearned premiums | 18,269,000,000 | 19,248,000,000 |
Future policy benefits for life and accident and health insurance contracts | 50,512,000,000 | 44,935,000,000 |
Policyholder contract deposits (portion measured at fair value: 2019 - $6,910; 2018 - $4,116) | 151,869,000,000 | 142,262,000,000 |
Other policyholder funds | 3,428,000,000 | 3,568,000,000 |
Other liabilities (portion measured at fair value: 2019 - $1,100; 2018 - $1,265) | 26,609,000,000 | 24,636,000,000 |
Long-term debt (portion measured at fair value: 2019 - $2,062; 2018 - $2,213) | 35,350,000,000 | 34,540,000,000 |
Separate account liabilities | 93,272,000,000 | 81,847,000,000 |
Total liabilities | 457,637,000,000 | 434,675,000,000 |
Contingencies, commitments and guarantees (see Note 17) | ||
AIG shareholders' equity: | ||
Series A Non-cumulative preferred stock and additional paid in capital, $5.00 par value; 100,000,000 shares authorized; shares issued: 2019 - 20,000 and 2018 - 0; liquidation preference $500 | 485,000,000 | 0 |
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2019 - 1,906,671,492 and 2018 - 1,906,671,492 | 4,766,000,000 | 4,766,000,000 |
Treasury stock, at cost; 2019 - 1,036,672,461 shares; 2018 - 1,040,062,063 shares of common stock | (48,987,000,000) | (49,144,000,000) |
Additional paid-in capital | 81,345,000,000 | 81,268,000,000 |
Retained earnings | 23,084,000,000 | 20,884,000,000 |
Accumulated other comprehensive income (loss) | 4,982,000,000 | (1,413,000,000) |
Total AIG shareholders' equity | 65,675,000,000 | 56,361,000,000 |
Non-redeemable noncontrolling interests | 1,752,000,000 | 948,000,000 |
Total equity | 67,427,000,000 | 57,309,000,000 |
Total liabilities and equity | 525,064,000,000 | 491,984,000,000 |
American International Group, Inc. | ||
Liabilities: | ||
Long-term debt (portion measured at fair value: 2019 - $2,062; 2018 - $2,213) | 25,479,000,000 | 26,136,000,000 |
Debt of consolidated investments | ||
Liabilities: | ||
Long-term debt (portion measured at fair value: 2019 - $2,062; 2018 - $2,213) | $ 9,871,000,000 | $ 8,404,000,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical - assets and liabilities) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Bonds available for sale, amortized cost | $ 233,230 | $ 225,780 |
Other invested assets, portion measured at fair value | 6,827 | 5,894 |
Short-term investments, portion measured at fair value | 5,343 | 3,015 |
Other assets, portion measured at fair value | 3,151 | 973 |
Liabilities: | ||
Policyholder contract deposits, portion measured at fair value | 6,910 | 4,116 |
Other liabilities, portion measured at fair value | 1,100 | 1,265 |
Long-term debt, portion measured at fair value | 2,062 | 2,213 |
Other assets | ||
Assets: | ||
Short-term investments, restricted cash | 243 | 343 |
Short-term investments | ||
Assets: | ||
Short-term investments, restricted cash | $ 188 | $ 142 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Parenthetical - equity) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
AIG shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 5 | $ 0 |
Preferred stock, shares authorized | 100,000,000 | 0 |
Preferred stock, shares issued | 20,000 | 0 |
Preferred stock liquidation preference | $ 500 | $ 0 |
Common stock, par value (in dollars per share) | $ 2.50 | $ 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 | 1,036,672,461 | 1,040,062,063 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Premiums | $ 30,561 | $ 30,614 | $ 31,374 |
Policy fees | 3,015 | 2,791 | 2,935 |
Net Investment Income | 14,619 | 12,476 | 14,179 |
Net realized capital gains (losses): | |||
Total other-than-temporary impairments on available for sale securities | (172) | (190) | (196) |
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss) | (2) | (61) | (31) |
Net other-than-temporary impairments on available for sale securities recognized in net income (loss) | (174) | (251) | (227) |
Other realized capital gains (losses) | 806 | 121 | (1,153) |
Total net realized capital gains (losses) | 632 | (130) | (1,380) |
Other income | 919 | 1,638 | 2,412 |
Total revenues | 49,746 | 47,389 | 49,520 |
Benefits, losses and expenses: | |||
Policyholder benefits and losses incurred | 25,402 | 27,412 | 29,972 |
Interest credited to policyholder account balances | 3,832 | 3,754 | 3,592 |
Amortization of DAC | 5,164 | 5,386 | 4,288 |
General operating and other expenses | 8,537 | 9,302 | 9,107 |
Interest expense | 1,417 | 1,309 | 1,168 |
(Gain) loss on extinguishment of debt | 32 | 7 | (5) |
Net (gain) loss on sale of divested businesses | 75 | (38) | (68) |
Total benefits, losses and expenses | 44,459 | 47,132 | 48,054 |
Income from continuing operations before income tax expense | 5,287 | 257 | 1,466 |
Income tax expense (benefit): | |||
Current | 545 | 336 | 636 |
Deferred | 621 | (182) | 6,890 |
Income tax expense | 1,166 | 154 | 7,526 |
Income (loss) from continuing operations | 4,121 | 103 | (6,060) |
Income (loss) from discontinued operations, net of income taxes | 48 | (42) | 4 |
Net income (loss) | 4,169 | 61 | (6,056) |
Less: | |||
Net income (loss) from continuing operations attributable to noncontrolling interests | 821 | 67 | 28 |
Net income (loss) attributable to AIG | 3,348 | (6) | (6,084) |
Less: Dividends on peferred stock | 22 | 0 | 0 |
Net income (loss) attributable to AIG common shareholders | $ 3,326 | $ (6) | $ (6,084) |
Basic: | |||
Income (loss) from continuing operations | $ 3.74 | $ 0.04 | $ (6.54) |
Income (loss) from discontinued operations | 0.05 | (0.05) | 0 |
Net income (loss) attributable to AIG common shareholders | 3.79 | (0.01) | (6.54) |
Diluted: | |||
Income (loss) from continuing operations | 3.69 | 0.04 | (6.54) |
Income (loss) from discontinued operations | 0.05 | (0.05) | 0 |
Net income (loss) attributable to AIG common shareholders | $ 3.74 | $ (0.01) | $ (6.54) |
Weighted average shares outstanding: | |||
Basic | 876,750,264 | 898,405,537 | 930,561,286 |
Diluted | 889,511,946 | 910,141,242 | 930,561,286 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $ 4,169 | $ 61 | $ (6,056) |
Other comprehensive income (loss), net of tax | |||
Change in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken | 661 | (1,000) | 367 |
Change in unrealized appreciation (depreciation) of all other investments | 5,689 | (4,975) | 1,288 |
Change in foreign currency translation adjustments | 104 | (349) | 539 |
Change in retirement plan liabilities adjustment | (36) | 28 | 41 |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | (3) | 3 | 0 |
Other comprehensive income (loss) | 6,415 | (6,293) | 2,235 |
Comprehensive income (loss) | 10,584 | (6,232) | (3,821) |
Comprehensive income (loss) attributable to noncontrolling interests | 841 | 76 | 28 |
Comprehensive income (loss) attributable to AIG | $ 9,743 | $ (6,308) | $ (3,849) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Total AIG Shareholders' Equity | Preferred Stock and Additional Paid-In Capital | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non redeemable Non-controlling Interests |
Balance at Dec. 31, 2016 | $ 76,858 | $ 76,300 | $ 0 | $ 4,766 | $ (41,471) | $ 81,064 | $ 28,711 | $ 3,230 | $ 558 |
Common stock issued under stock plans | (178) | (178) | 0 | 0 | 147 | (325) | 0 | 0 | 0 |
Purchase of common stock | (6,275) | (6,275) | 0 | 0 | (6,275) | 0 | 0 | 0 | 0 |
Net income (loss) attributable to AIG or other noncontrolling interests | (6,056) | (6,084) | 0 | 0 | 0 | 0 | (6,084) | 0 | 28 |
Dividends on common stock | (1,172) | (1,172) | 0 | 0 | 0 | 0 | (1,172) | 0 | 0 |
Other comprehensive income (loss) | 2,235 | 2,235 | 0 | 0 | 0 | 0 | 0 | 2,235 | 0 |
Current and deferred income taxes | (4) | (4) | 0 | 0 | 0 | (4) | 0 | 0 | 0 |
Net increase (decrease) due to acquisitions and consolidations | 101 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 101 |
Contributions from noncontrolling interests | 42 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 42 |
Distributions to noncontrolling interests | (193) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (193) |
Other | 350 | 349 | 0 | 0 | 4 | 343 | 2 | 0 | 1 |
Balance at Dec. 31, 2017 | 65,708 | 65,171 | 0 | 4,766 | (47,595) | 81,078 | 21,457 | 5,465 | 537 |
Cumulative effect of change in accounting principle, net of tax | (8) | (8) | 0 | 0 | 0 | 0 | 568 | (576) | 0 |
Common stock issued under stock plans | (155) | (155) | 0 | 0 | 189 | (344) | 0 | 0 | 0 |
Purchase of common stock | (1,739) | (1,739) | 0 | 0 | (1,739) | 0 | 0 | 0 | 0 |
Net income (loss) attributable to AIG or other noncontrolling interests | 61 | (6) | 0 | 0 | 0 | 0 | (6) | 0 | 67 |
Dividends on common stock | (1,138) | (1,138) | 0 | 0 | 0 | 0 | (1,138) | 0 | 0 |
Other comprehensive income (loss) | (6,293) | (6,302) | 0 | 0 | 0 | 0 | 0 | (6,302) | 9 |
Current and deferred income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net increase (decrease) due to acquisitions and consolidations | 63 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 63 |
Contributions from noncontrolling interests | 373 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 373 |
Distributions to noncontrolling interests | (96) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (96) |
Other | 533 | 538 | 0 | 0 | 1 | 534 | 3 | 0 | (5) |
Balance at Dec. 31, 2018 | 57,309 | 56,361 | 0 | 4,766 | (49,144) | 81,268 | 20,884 | (1,413) | 948 |
Preferred stock issued | 485 | 485 | 485 | 0 | 0 | 0 | 0 | 0 | 0 |
Common stock issued under stock plans | (80) | (80) | 0 | 0 | 156 | (236) | 0 | 0 | 0 |
Purchase of common stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net income (loss) attributable to AIG or other noncontrolling interests | 4,169 | 3,348 | 0 | 0 | 0 | 0 | 3,348 | 0 | 821 |
Dividends on preferred stock | (22) | (22) | 0 | 0 | 0 | 0 | (22) | 0 | 0 |
Dividends on common stock | (1,114) | (1,114) | 0 | 0 | 0 | 0 | (1,114) | 0 | 0 |
Other comprehensive income (loss) | 6,415 | 6,395 | 0 | 0 | 0 | 0 | 0 | 6,395 | 20 |
Current and deferred income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net increase (decrease) due to acquisitions and consolidations | 65 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 65 |
Contributions from noncontrolling interests | 19 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 19 |
Distributions to noncontrolling interests | (131) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (131) |
Other | 312 | 302 | 0 | 0 | 1 | 313 | (12) | 0 | 10 |
Balance at Dec. 31, 2019 | $ 67,427 | $ 65,675 | $ 485 | $ 4,766 | $ (48,987) | $ 81,345 | $ 23,084 | $ 4,982 | $ 1,752 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 4,169 | $ 61 | $ (6,056) |
Loss from discontinued operations | (48) | 42 | (4) |
Noncash revenues, expenses, gains and losses included in income (loss): | |||
Net gains on sales of securities available for sale and other assets | (862) | 98 | (431) |
Net (gain) loss on sale of divested businesses | 75 | (38) | (68) |
(Gain) loss on extinguishment of debt | 32 | 7 | (5) |
Unrealized losses in earnings - net | 207 | 443 | 79 |
Equity in loss from equity method investments, net of dividends or distributions | 260 | 363 | 350 |
Depreciation and other amortization | 5,006 | 5,362 | 3,874 |
Impairments of assets | 299 | 425 | 685 |
Changes in operating assets and liabilities: | |||
Insurance reserves | (5,224) | 1,065 | 2,637 |
Premiums and other receivables and payables - net | 437 | 887 | 410 |
Reinsurance assets and funds held under reinsurance treaties | 217 | (3,289) | (10,870) |
Capitalization of deferred policy acquisition costs | (5,403) | (5,832) | (4,819) |
Current and deferred income taxes - net | 912 | 0 | 6,981 |
Other, net | (1,005) | 467 | (581) |
Total adjustments | (5,049) | (42) | (1,758) |
Net cash provided by (used in) operating activities | (928) | 61 | (7,818) |
Sales or distribution of: | |||
Available for sale securities | 22,145 | 25,143 | 31,082 |
Other securities | 7,918 | 3,755 | 3,792 |
Other invested assets | 4,185 | 4,365 | 6,913 |
Divested businesses, net | 2 | 10 | 792 |
Maturities of fixed maturity securities available for sale | 25,488 | 24,777 | 29,011 |
Principal payments received on and sales of mortgage and other loans receivable | 5,826 | 4,272 | 5,742 |
Purchases of: | |||
Available for sale securities | (54,410) | (44,109) | (49,856) |
Other securities | (1,638) | (1,318) | (1,147) |
Other invested assets | (3,346) | (2,839) | (2,874) |
Mortgage and other loans receivable | (9,515) | (10,286) | (9,369) |
Acquisition of businesses, net of cash and restricted cash acquired | 0 | (5,717) | 0 |
Net change in short-term investments | (3,633) | 1,524 | 2,098 |
Other, net | 1,503 | 200 | (2,143) |
Net cash provided by (used in) investing activities | (5,475) | (223) | 14,041 |
Proceeds from (payments for) | |||
Policyholder contract deposits | 22,307 | 24,178 | 17,908 |
Policyholder contract withdrawals | (17,556) | (17,999) | (15,785) |
Issuance of long-term debt and debt of consolidated investment entities | 3,881 | 4,734 | 3,356 |
Repayments of long-term debt and debt of consolidated investment entities | (3,202) | (3,672) | (3,698) |
Issuance of preferred stock, net of issuance costs | 485 | 0 | 0 |
Purchase of common stock | 0 | (1,739) | (6,275) |
Dividends paid on preferred stock | (22) | 0 | 0 |
Dividends paid on common stock | (1,114) | (1,138) | (1,172) |
Other, net | 1,600 | (3,570) | (31) |
Net cash provided by (used in) financing activities | 6,379 | 794 | (5,697) |
Effect of exchange rate changes on cash and restricted cash | 16 | (11) | (29) |
Net increase (decrease) in cash and restricted cash | (8) | 621 | 497 |
Cash and restricted cash at beginning of year | 3,358 | 2,737 | 2,107 |
Change in cash of businesses held for sale | (63) | 0 | 133 |
Cash and restricted cash at end of year | $ 3,287 | $ 3,358 | $ 2,737 |
Supplementary Disclosure of Con
Supplementary Disclosure of Consolidated Cash Flow Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | |||
Cash | $ 2,856 | $ 2,873 | $ 2,362 |
Total cash and restricted cash shown in the Condensed Consolidated Cash Flows | 3,287 | 3,358 | 2,737 |
Cash paid during the period for: | |||
Interest | 1,326 | 1,312 | 1,282 |
Taxes | 252 | 154 | 544 |
Cash Flow, Noncash Investing Activities Disclosure | |||
Fixed maturity securities available for sale received in connection with pension risk transfer transactions | 1,072 | 0 | 0 |
Cash Flow, Noncash Financing Activities Disclosure | |||
Interest credited to policyholder contract deposits included in financing activities | 3,305 | 3,392 | 3,309 |
Other assets | |||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | |||
Restricted cash | 243 | 343 | 317 |
Short-term investments | |||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | |||
Restricted cash | $ 188 | $ 142 | $ 58 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
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). 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 the basis of fiscal period ending November 30. The effect on our consolidated financial condition and results of operations of all material events occurring at these subsidiaries 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 principles generally accepted in the United States (U.S. GAAP). All material intercompany accounts and transactions have been eliminated. Acquisition of Businesses Validus On July 18, 2018, we completed the purchase of Validus Holdings, Ltd. (Validus), a leading provider of reinsurance, primary insurance, and asset management services, for $ 5.5 billion in cash. The results of Validus following the date of the acquisition are included in our General Insurance segment starting in the third quarter of 2018. Our North America results include the results of Validus Reinsurance, Ltd. and Western World Insurance Group, Inc., while our International results include the results of Talbot Holdings Ltd. For additional information relating to the acquisition of Validus, see Note 5. Glatfelter On November 6, 2018 AIG completed the purchase of Glatfelter Insurance Group, a full-service broker and insurance company providing services for specialty programs and retail operations. Ellipse On December 31, 2018, AIG Life Ltd., a UK AIG Life and Retirement company, completed the acquisition of Ellipse, a specialist provider of group life risk protection in the UK. Sales of Businesses Sale of Certain Insurance Subsidiary Operations to Fairfax On October 18, 2016, we entered into an agreement to sell certain insurance operations to Fairfax Financial Holdings Limited (Fairfax). The agreement included the sale of our subsidiary operations in Argentina, Chile, Colombia, Uruguay and Turkey. Fairfax acquired renewal rights for the portfolios of local business written by our operations in Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia, and assume certain of our operating assets and employees. Substantially all of the operations and renewal rights that we agreed to sell to Fairfax were sold by December 31, 2017. AIG Fuji Life Insurance On November 14, 2016, we entered into an agreement to sell Fuji Life to FWD Group, the insurance arm of Pacific Century Group. Total cash consideration to us was approximately $ 333 million. The transaction closed on April 30, 2017. Fortitude Holdings On November 13, 2018, AIG completed the sale of a 19.9 percent ownership interest in Fortitude Group Holdings, LLC (Fortitude Holdings) to TC Group Cayman Investments Holdings, L.P. (TCG), an affiliate of The Carlyle Group L.P. (Carlyle) (2018 Fortitude Sale). Upon completion of the 2018 Fortitude Sale, Fortitude Holdings owned 100 percent of the outstanding common shares of Fortitude Reinsurance Company Ltd (Fortitude Re) and AIG had an 80.1 percent ownership interest in Fortitude Holdings. We received $ 381 million in cash and will receive up to $ 95 million of deferred compensation which is subject to certain purchase price adjustments. To the extent we do not receive all or a portion of the planned distributions within 18 months of the closing of the 2018 Fortitude Sale, TCG will pay us up to an additional $ 100 million. In connection with the 2018 Fortitude Sale, we agreed to certain investment commitment targets into various Carlyle strategies and to certain minimum investment management fee payments within 36 months following the closing. We also will be required to pay a proportionate amount of an agreed make-whole fee to the extent we fail to satisfy such investment commitment targets. On November 25, 2019, AIG entered into a membership interest purchase agreement with Fortitude Holdings, Carlyle, Carlyle FRL, an investment fund advised by an affiliate of Carlyle (Carlyle FRL), T&D United Capital Co., Ltd. (T&D) and T&D Holdings, Inc., pursuant to which, subject to the satisfaction or waiver of certain conditions set forth therein, Carlyle FRL will purchase from AIG a 51.6 percent ownership interest in Fortitude Holdings and T&D will purchase from AIG a 25 percent ownership interest in Fortitude Holdings (2019 Fortitude Sale). Upon closing of the 2019 Fortitude Sale, AIG will have a 3.5 percent ownership interest in Fortitude Holdings. In connection with the 2019 Fortitude Sale agreement, AIG, Fortitude Holdings and an affiliate of Carlyle FRL have agreed that, effective as of the closing of the 2019 Fortitude Sale, (i) AIG’s aforementioned investment commitment targets will be assumed by Fortitude Holdings and AIG will be released therefrom, and (ii) Carlyle will remain obligated to pay AIG $ 95 million of deferred compensation and up to an additional $ 100 million to the extent AIG does not receive all or a portion of the planned distributions within 18 months of the closing of the 2018 Fortitude Sale. We expect to contribute approximately $ 1.45 billion of the proceeds of the 2019 Fortitude Sale to certain of our insurance company subsidiaries for a period of time following the closing of the transaction. There can be no guarantee that we will receive the required regulatory approvals or that closing conditions will be satisfied in order to consummate the 2019 Fortitude Sale. For further details on this transaction see Note 4 to the Consolidated Financial Statements. Use of Estimates The preparation of financial statements in accordance with U.S. 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: liability for unpaid losses and loss adjustment expenses (loss reserves); valuation of future policy benefit liabilities and timing and extent of loss recognition; valuation of liabilities for guaranteed benefit features of variable annuity products; valuation of embedded derivatives for fixed index annuity and life products; estimated gross profits to value deferred policy acquisition costs for investment-oriented products; reinsurance assets; impairment charges, including other-than-temporary impairments on available for sale securities, impairments on other invested assets, including investments in life settlements, allowances for loan losses, and goodwill impairment; liability for legal contingencies; fair value measurements of certain financial assets and liabilities; and 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 and estimates associated with the Tax Act. These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected. Out of Period Adjustments For the year ended December 31, 2018, our results include out of period adjustments relating to prior periods that decreased net income attributable to AIG by $ 77 million, and decreased Income from continuing operations before income taxes by $ 98 million. The out of period adjustments are primarily related to decreases in deferred policy acquisition costs and increases in policyholder contract deposits. We determined that these adjustments were not material to the current year or to any previously reported annual financial statements. Had these adjustments been recorded in their appropriate periods, Net income attributable to AIG for the year ended December 31, 2017 would have increased by $ 95 million. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. Summary of Significant Accounting Policies The following table identifies our significant accounting policies presented in other Notes to these Consolidated Financial Statements, with a reference to the Note where a detailed description can be found: Note 7. 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 8. Lending Activities Mortgage and other loans receivable – net of allowance Note 9. Reinsurance Reinsurance assets – net of allowance Retroactive reinsurance Note 10. Deferred Policy Acquisition Costs Deferred policy acquisition costs Amortization of deferred policy acquisition costs Note 11. Variable Interest Entities Note 12. Derivatives and Hedge Accounting Derivative assets and liabilities, at fair value Note 13. Goodwill and Other Intangible Assets Note 14. Insurance Liabilities Liability for unpaid losses and loss adjustment expenses Discounting of reserves Future policy benefits Policyholder contract deposits Other policyholder funds Note 15. Variable Life and Annuity Contracts Note 16. Debt Long-term debt Note 17. Contingencies, Commitments and Guarantees Legal contingencies Note 19. Earnings Per Common Share Note 23. Income Taxes Other significant accounting policies Premiums for short-duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums written and earned on a pro rata basis over the term of the related coverage. In addition, certain miscellaneous income is included as premiums written and earned. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired terms of coverage. Reinsurance premiums are typically earned over the same period as the underlying policies or risks covered by the contract. As a result, the earnings pattern of a reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies throughout the year. Reinsurance premiums ceded under prospective reinsurance agreements 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. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsureds. Any subsequent differences that arise regarding such estimates are recorded in the periods in which they are determined. Premiums for long-duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued. Policy fees represent fees recognized from universal life and investment-type products consisting of policy charges for the cost of insurance, policy administration charges, surrender charges and amortization of unearned revenue reserves. 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, similar to DAC. Other income includes advisory fee income from the Life and Retirement broker dealer business. Cash represents cash on hand and demand deposits. Short-term investments Short-term investments include highly liquid securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. Securities included within short-term investments are stated at estimated fair value, while other investments included within short-term investments are stated at amortized cost, which approximates estimated fair value. Premiums and other receivables – net of allowance include premium balances receivable, amounts due from agents and brokers and policyholders, trade receivables for the Direct 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 doubtful accounts on premiums and other receivables was $ 178 million and $ 216 million at December 31, 2019 and 2018, respectively. Deposit assets and liabilities: We have entered into certain insurance and reinsurance contracts, primarily in our General Insurance companies, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. When we receive premiums on such contracts, the premiums received, 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. When we pay premiums on such contracts, the premiums paid are recorded as deposits within Other assets in the Consolidated Balance Sheets. The deposit asset or liability is adjusted as amounts are paid, consistent with the underlying contracts. Other assets consist of sales inducement assets, prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, restricted cash, derivative assets and assets of businesses classified as held-for-sale. We offer sales inducements which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. Such amounts are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC (see Note 10 herein) . To qualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception. We must also demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest, and are higher than the contract’s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets totaled $ 430 million and $ 752 million at December 31, 2019 and 2018, respectively. The amortization expense associated with these assets is reported within Interest credited to policyholder account balances in the Consolidated Statements of Income. Such amortization expense totaled $ 79 million, $ 156 million and $ 94 million for the years ended December 31, 2019, 2018 and 2017, respectively. The cost of buildings and furniture and equipment is depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and equipment). Expenditures for maintenance and repairs are charged to income as incurred and expenditures for improvements are capitalized and depreciated. We periodically assess the carrying amount of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized using the straight-line method over a period generally not exceeding ten years. 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 stable 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 15 herein . Other liabilities consist of other funds on deposit, other payables, securities sold under agreements to repurchase, securities sold but not yet purchased, derivative liabilities, deferred gains on retroactive reinsurance agreements and liabilities of businesses classified as held-for-sale. Also included in Other liabilities are trade payables for the DIB and GCM, which include option premiums received and payables to counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due to clearing brokers and exchanges. Trade payables for GCM also include cash collateral received from derivative counterparties that contractually cannot be netted against derivative assets. Securities sold but not yet purchased represent sales of securities not owned at the time of sale. The obligations arising from such transactions are recorded on a trade-date basis and carried at fair value. Fair values of securities sold but not yet purchased are based on current market prices. Foreign currency: Financial statement accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in Total AIG shareholders’ equity. 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 remeasured 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) and net income (loss) in a subsidiary not attributable, directly or indirectly, to AIG. Accounting Standards Adopted During 2019 Leases In February 2016, the Financial Accounting Standards Board (FASB) issued an accounting standard that requires lessees with lease terms of more than 12 months 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. Lessor accounting remained largely the same, with the exception of certain specified changes. We adopted the standard on its effective date of January 1, 2019, using a modified retrospective approach and did not adjust prior comparative periods in accordance with the standard’s transition guidance. The majority of the Company’s lease obligations pertain to real estate utilized in the operation of our businesses. Consequently, the primary impact of adoption resulted in the recognition of discounted lease liabilities of $ 823 million and corresponding right-of-use assets of $ 724 million as of January 1, 2019 for operating leases pertaining to our real estate portfolio, which are reflected in Other Liabilities and Other Assets, respectively. The standard did not have a material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures. For additional information on our leases see Note 17 to the Consolidated Financial Statements. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued an accounting standard that shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. The standard does not require an accounting change for securities held at a discount, which continue to be amortized to maturity. We adopted the standard using a modified retrospective approach on its effective date of January 1, 2019. The standard did not have a material impact on our reported consolidated financial condition, results of operations, cash flows or required disclosures. Derivatives and Hedging In August 2017, the FASB issued an accounting standard that improves and expands hedge accounting for both financial and commodity risks. The provisions of the standard are intended to better align the accounting with an entity’s risk management activities, enhance the transparency on how the economic results are presented in the financial statements and disclosures, and simplify the application of hedge accounting treatment. We adopted the standard on its effective date of January 1, 2019. The standard did not have a material impact on our reported consolidated financial condition, results of operations, cash flows or required disclosures. Future Application of Accounting Standards Financial Instruments - Credit Losses In June 2016, the FASB issued an accounting standard that will change how entities account for current expected credit losses (CECL) for most financial assets, premiums receivable, off-balance sheet exposures and reinsurance receivables. The standard requires an allowance for credit losses based on the expectation of lifetime credit losses related to such financial assets subject to credit losses, including loans measured at amortized cost, reinsurance receivables and certain off-balance sheet credit exposures. Additionally, the impairment of available-for-sale debt securities, including purchased credit deteriorated securities, is subject to the new guidance and will be measured in a similar manner, except that losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard will allow for reversals of credit impairments in the event that the credit of an issuer improves. The standard also requires additional disclosures. We adopted the standard on its effective date of January 1, 2020 using a modified retrospective method, which requires a cumulative effect adjustment to retained earnings. As of December 31, 2019, the impact of the adoption of the standard will be a reduction in opening retained earnings of approximately $ 650 million (pre-tax) primarily driven by commercial mortgage loans, and, to a lesser extent, reinsurance receivables and recoverables. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued an accounting standard that eliminates the requirement to calculate the implied fair value of goodwill, through a hypothetical purchase price allocation, to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value not to exceed the total amount of goodwill allocated to that reporting unit. An entity should also consider income tax effects from tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. We adopted the standard on its effective date of January 1, 2020. Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued an accounting standard update with the objective of making targeted improvements to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The standard prescribes significant and comprehensive changes to recognition, measurement, presentation and disclosure as summarized below: Requires the review and if necessary update of future policy benefit assumptions at least annually for traditional and limited pay long duration contracts, with the recognition and separate presentation of any resulting re-measurement gain or loss (except for discount rate changes as noted below) in the income statement. Requires the discount rate assumption to be updated at the end of each reporting period using an upper medium grade (low-credit risk) fixed income instrument yield that maximizes the use of observable market inputs and recognizes the impact of changes to discount rates in other comprehensive income. Simplifies the amortization of deferred policy acquisition costs (DAC) to a constant level basis over the expected term of the related contracts with adjustments for unexpected terminations, but no longer requires an impairment test. Requires the measurement of all market risk benefits associated with deposit (or account balance) contracts at fair value through the income statement with the exception of instrument-specific credit risk changes, which will be recognized in other comprehensive income. Increased disclosures of disaggregated roll-forwards of policy benefits, account balances, market risk benefits, separate account liabilities and information about significant inputs, judgments and methods used in measurement and changes thereto and impact of those changes. In October 2019, the FASB affirmed its decision to defer the effective date of the standard to January 1, 2022. We plan to adopt the standard on its updated effective date. We have started our implementation efforts and we are evaluating the method of adoption and impact of the standard on our reported consolidated financial condition, results of operations, cash flows and required disclosures. The adoption of this standard is expected to have a significant impact on our consolidated financial condition, results of operations, cash flows and required disclosures, as well as systems, processes and controls. Income Tax On December 18, 2019, the FASB issued guidance that simplifies the accounting for income taxes by eliminating certain exceptions to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The amendments also simplified other areas including the accounting for franchise taxes and enacted tax laws or rates, and clarified the accounting for transactions that result in the step-up in the tax basis of goodwill. The standard Is effective on January 1, 2021, with early adoption permitted. We are assessing the impact on our consolidated financial condition, results of operations and cash flows. RECLASSIFICATIONS In the first quarter of 2019, we began reporting investment income from our non-insurance subsidiaries in Net investment income instead of Other income on a prospective basis to be consistent with how we report investment income from our General Insurance and Life and Retirement reporting segments. This reclassification has no impact to our consolidated statements of operations. GOODWILL Effective July 1, 2019, we changed the date of our annual goodwill impairment testing from December 31 to July 1. This change does not represent a material change to our method of applying current accounting guidance and is preferable as it better aligns with our strategic planning and forecasting process. This change did not delay, accelerate or avoid any impairment charge and was applied prospectively. We performed our annual goodwill impairment tests of all reporting units using a combination of both qualitative and quantitative assessments and concluded that our goodwill was not impaired. Our goodwill balance was $ 4.0 billion at December 31, 2019. For further information on goodwill see Note 13 to the Consolidated Financial Statements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
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, as follows: General Insurance General Insurance business is presented as two operating segments: North America — consists of insurance businesses in the United States, Canada and Bermuda. This also includes the results of Validus Reinsurance, Ltd., Western World Insurance Group, Inc. and Glatfelter Insurance Group as of their respective acquisition dates. International — consists of regional insurance businesses in Japan, the United Kingdom, Europe, Asia Pacific, Latin America and Caribbean, Middle East and Africa, and China. This also includes the results of Talbot Holdings, Ltd. as of its acquisition date. Results are presented before internal reinsurance transactions. North America and International operating segments consist of the following products: – Commercial Lines — consists of Liability, Financial Lines, Property and Special Risks. – Personal Insurance — consists of Personal Lines and Accident and Health. Life and Retirement Life and Retirement 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 annuities, individual annuity and investment products, and financial planning and advisory services. Life Insurance — primary products in the U.S. include term life and universal life insurance. International operations include distribution of life and health products in the UK and Ireland. Institutional Markets — consists of stable value wrap products, structured settlement and pension risk transfer annuities, corporate- and bank-owned life insurance and guaranteed investment contracts (GICs). Other Operations Other Operations consists primarily of: Income from assets held by AIG Parent and other corporate subsidiaries. General operating expenses not attributable to AIG reporting segments. Certain compensation expenses attributable to Other Operations and reporting segments. Amortization of value of distribution network acquired (VODA) related to the Validus and Glatfelter acquisitions. Interest expense attributable to AIG long-term debt as well as debt associated with consolidated investment entities. Results also include: Blackboard — a subsidiary focused on delivering commercial insurance solutions using digital technology, data analytics and automation. Fuji Life — consists of term insurance, life insurance, endowment policies and annuities. The sale of this business was completed on April 30, 2017. Legacy Portfolio Legacy Portfolio represents exited or discontinued product lines, policy forms or distribution channels. Effective February 2018, our Bermuda domiciled composite reinsurer, Fortitude Reinsurance Company Ltd. (Fortitude Re), is included in our Legacy Portfolio. Legacy Life and Retirement Run-Off Lines — Reserves consist of certain structured settlements, pension risk transfer annuities and single premium immediate annuities written prior to April 2012. Also includes exposures to whole life, long-term care and exited accident & health product lines. Legacy General Insurance Run-Off Lines — Reserves consist of excess workers’ compensation, environmental exposures and exposures to other products within General Insurance that are no longer actively marketed. Also includes the remaining reserves in Eaglestone Reinsurance Company (Eaglestone). Legacy Investments — Includes investment classes that we have placed into run-off including holdings in direct investments as well as investments in global capital markets and global real estate. We evaluate segment performance based on adjusted revenues and adjusted pre-tax income (loss). Adjusted revenues and adjusted pre-tax income (loss) are derived by excluding certain items from total revenues and net income (loss) attributable to AIG, respectively. These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and measures that we believe to be common to the industry. Beginning in the first quarter of 2019, on a prospective basis, the changes in the fair value of equity securities are excluded from adjusted pre-tax income (loss). For the items excluded from adjusted revenues and adjusted pre-tax income (loss) see the table below. The following table presents AIG’s continuing operations by operating segment: Net Adjusted Total Investment Interest Amortization Pre-tax (in millions) Revenues Income Expense of DAC Income (Loss) 2019 General Insurance North America $ 15,782 $ 2,929 $ - $ 2,008 $ 2,709 International 14,100 515 - 2,474 824 Total General Insurance 29,882 3,444 - 4,482 3,533 Life and Retirement Individual Retirement 5,654 4,133 77 449 1,984 Group Retirement 2,947 2,240 44 81 937 Life Insurance 4,352 1,203 26 115 246 Institutional Markets 2,912 885 11 5 291 Total Life and Retirement 15,865 8,461 158 650 3,458 Other Operations 845 370 1,246 16 ( 1,709) Legacy Portfolio 3,016 2,480 19 68 501 AIG Consolidation and elimination ( 691) ( 365) ( 53) - ( 305) Total AIG Consolidated adjusted revenues and adjusted pre-tax income $ 48,917 $ 14,390 $ 1,370 $ 5,216 $ 5,478 Reconciling items from adjusted pre-tax income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 228 228 - - 194 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) - - - ( 52) 56 Changes in the fair value of equity securities 158 158 - - 158 Professional fees related to regulatory or accounting changes - - - - ( 12) Other income (expense) - net 46 85 85 - - Loss on extinguishment of debt - - - - ( 32) Net realized capital gains (losses) * 388 ( 242) ( 38) - 448 Loss from divested businesses - - - - ( 75) Non-operating litigation reserves and settlements 9 - - - 2 Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - 267 Net loss reserve discount charge - - - - ( 955) Pension expense related to a one-time lump sum payment to former employees - - - - - Integration and transaction costs associated with acquired businesses - - - - ( 24) Restructuring and other costs - - - - ( 218) Revenues and Pre-tax income $ 49,746 $ 14,619 $ 1,417 $ 5,164 $ 5,287 2018 General Insurance North America $ 14,619 $ 2,305 $ - $ 1,859 $ ( 8) International 15,554 363 - 2,737 ( 461) Total General Insurance 30,173 2,668 - 4,596 ( 469) Life and Retirement Individual Retirement 5,338 3,827 82 630 1,681 Group Retirement 2,891 2,172 42 95 933 Life Insurance 4,007 1,137 25 ( 50) 330 Institutional Markets 1,900 786 13 5 246 Total Life and Retirement 14,136 7,922 162 680 3,190 Other Operations 636 45 1,066 10 ( 1,584) Legacy Portfolio 3,039 2,325 30 105 213 AIG Consolidation and elimination ( 171) ( 232) 85 - 59 Total AIG Consolidated adjusted revenues and adjusted pre-tax income $ 47,813 $ 12,728 $ 1,343 $ 5,391 $ 1,409 Reconciling items from adjusted pre-tax income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits ( 128) ( 128) - - ( 154) Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) - - - ( 5) 6 Changes in the fair value of equity securities - - - - - Professional fees related to regulatory or accounting changes - - - - - Other income (expense) - net ( 53) - - - - Loss on extinguishment of debt - - - - ( 7) Net realized capital losses * ( 254) ( 124) ( 34) - ( 193) Income from divested businesses - - - - 38 Non-operating litigation reserves and settlements 11 - - - ( 19) Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - ( 675) Net loss reserve discount benefit - - - - 371 Pension expense related to a one-time lump sum payment to former employees - - - - - Integration and transaction costs associated with acquired businesses - - - - ( 124) Restructuring and other costs - - - - ( 395) Revenues and Pre-tax income $ 47,389 $ 12,476 $ 1,309 $ 5,386 $ 257 2017 General Insurance North America $ 14,600 $ 3,145 $ 31 $ 1,305 $ ( 232) International 15,094 523 ( 9) 2,460 ( 581) Total General Insurance 29,694 3,668 22 3,765 ( 813) Life and Retirement Individual Retirement 5,514 4,013 58 415 2,289 Group Retirement 2,848 2,164 32 84 1,004 Life Insurance 4,056 1,044 13 239 274 Institutional Markets 3,168 595 6 5 264 Total Life and Retirement 15,586 7,816 109 743 3,831 Other Operations 1,413 53 968 ( 9) ( 1,405) Legacy Portfolio 4,391 2,776 122 76 1,470 AIG Consolidation and elimination ( 308) ( 280) ( 53) 4 75 Total AIG Consolidated adjusted revenues and adjusted pre-tax income $ 50,776 $ 14,033 $ 1,168 $ 4,579 $ 3,158 Reconciling items from adjusted pre-tax income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 146 146 - - 146 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) - - - ( 291) 303 Changes in the fair value of equity securities - - - - - Professional fees related to regulatory or accounting changes - - - - - Other income (expense) - net ( 49) - - - - Gain on extinguishment of debt - - - - 5 Net realized capital losses * ( 1,380) - - - ( 1,380) Income from divested businesses - - - - 68 Non-operating litigation reserves and settlements 27 - - - 129 Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - ( 303) Net loss reserve discount charge - - - - ( 187) Pension expense related to a one-time lump sum payment to former employees - - - - ( 60) Integration and transaction costs associated with acquired businesses - - - - - Restructuring and other costs - - - - ( 413) Revenues and Pre-tax income $ 49,520 $ 14,179 $ 1,168 $ 4,288 $ 1,466 * Includes all net realized capital gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication. 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) 2019 2018 2019 2018 General Insurance companies $ 109,871 $ 110,007 $ 105 $ 171 Life and Retirement companies 280,721 247,219 104 94 Other 142,745 140,428 95 103 AIG Consolidation and Elimination ( 8,273) ( 5,670) - - Total Assets $ 525,064 $ 491,984 $ 304 $ 368 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) 2019 2018 2017 2019 2018 2017 North America $ 36,862 $ 31,003 $ 34,149 $ 1,333 $ 1,479 $ 1,630 International 12,884 16,386 15,371 620 693 892 Consolidated $ 49,746 $ 47,389 $ 49,520 $ 1,953 $ 2,172 $ 2,522 * Revenues are generally reported according to the geographic location of the reporting unit. International revenues consists of revenues from our General Insurance International operating segment. |
HELD-FOR-SALE CLASSIFICATION
HELD-FOR-SALE CLASSIFICATION | 12 Months Ended |
Dec. 31, 2019 | |
HELD-FOR-SALE CLASSIFICATION | |
HELD-FOR-SALE CLASSIFICATION | 4. Held-For-Sale Classification Held-For-Sale Classification We report and classify a business as held-for-sale (Held-For-Sale Business) 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 Held-For-Sale Business 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 Held-For-Sale Business are reported in Other assets and Other liabilities, respectively, in our Consolidated Balance Sheets beginning in the period in which the business is classified as held-for-sale. At December 31, 2019, the following business was reported and classified as held-for-sale: Fortitude Holdings Fortitude Re was established during the first quarter of 2018 in connection with a series of affiliated reinsurance transactions related to our Legacy Portfolio. Those reinsurance transactions were designed to consolidate most of our Legacy Insurance Run-Off Lines into a single legal entity. As of December 31, 2019, the affiliated transactions included the cession of approximately $ 30.2 billion of reserves from our Legacy Life and Retirement Run-Off Lines and approximately $ 3.9 billion of reserves from our Legacy General Insurance Run-Off Lines related to business written by multiple wholly-owned AIG subsidiaries. Fortitude Re has approximately $ 2.5 billion of total assets after elimination of intercompany balances, primarily managed by AIG, and is AIG’s main run-off reinsurer with its own dedicated management team. In the second quarter of 2018, the Company formed Fortitude Holdings as the holding company for Fortitude Re. On November 13, 2018, AIG completed the sale of a 19.9 percent ownership interest in Fortitude Holdings to TCG, an affiliate of Carlyle. Upon completion of the 2018 Fortitude Sale, Fortitude Holdings owned 100 percent of the outstanding common shares of Fortitude Re and AIG had an 80.1 percent ownership interest in Fortitude Holdings. We received $ 381 million in cash and will receive up to $ 95 million of deferred compensation which is subject to certain purchase price adjustments. To the extent we do not receive all or a portion of the planned distributions within 18 months of the 2018 Fortitude Sale, TCG will pay us up to an additional $ 100 million. In connection with the 2018 Fortitude Sale, we agreed to certain investment commitment targets into various Carlyle strategies and to certain minimum investment management fee payments within thirty-six months following the closing. We also will be required to pay a proportionate amount of an agreed make-whole fee to the extent we fail to satisfy such investment commitment targets. On November 25, 2019, AIG entered into a membership interest purchase agreement with Fortitude Holdings, Carlyle, Carlyle FRL, T&D and T&D Holdings, Inc., pursuant to which, subject to the satisfaction or waiver of certain conditions set forth therein, Carlyle FRL will purchase from AIG a 51.6 percent ownership interest in Fortitude Holdings and T&D will purchase from AIG a 25 percent ownership interest in Fortitude Holdings. Upon closing of the 2019 Fortitude Sale, AIG will have a 3.5 percent ownership interest in Fortitude Holdings. In connection with the 2019 Fortitude Sale agreement, AIG, Fortitude Holdings and an affiliate of Carlyle FRL have agreed that, effective as of the closing of the 2019 Fortitude Sale, (i) AIG’s aforementioned investment commitment targets will be assumed by Fortitude Holdings and AIG will be released therefrom, and (ii) Carlyle will remain obligated to pay AIG $ 95 million of deferred compensation and up to an additional $ 100 million to the extent AIG does not receive all or a portion of the planned distributions within 18 months of the closing of the 2018 Fortitude Sale. We expect to contribute approximately $ 1.45 billion of the proceeds of the 2019 Fortitude Sale to certain of our insurance company subsidiaries for a period of time following the closing of the transaction. There can be no guarantee that we will receive the required regulatory approvals or that closing conditions will be satisfied in order to consummate the 2019 Fortitude Sale. We recorded a loss of $ 98 million which has been recorded as a contra-asset within assets held for sale line below. The transaction is expected to close in mid-2020, subject to required regulatory approvals and other customary closing conditions. The following table summarizes the components of assets and liabilities held-for-sale on the Consolidated Balance Sheets at December 31, 2019 after elimination of intercompany balances: December 31, (in millions) 2019 Assets: Bonds available for sale $ 2,187 Other bond securities 13 Other invested assets 45 Short-term investments 107 Cash 63 Accrued investment income 19 Deferred income taxes ( 22) Other assets 106 Assets of business held for sale 2,518 Less: Loss Accrual ( 98) Total assets held for sale $ 2,420 Liabilities: Other liabilities $ 15 Total liabilities held for sale $ 15 The affiliated reinsurance transactions executed in the first quarter of 2018 with Fortitude Re resulted in prepaid insurance assets on the ceding subsidiaries’ balance sheets of approximately $ 2.5 billion (after-tax) and related deferred acquisition costs of $ 0.5 billion (after-tax) at inception of the contract. The prepaid insurance assets have been eliminated in AIG’s consolidated financial statements since the counterparties were wholly owned. Upon closing of the 2019 Fortitude Sale, AIG will recognize a loss for the portion of the unamortized balance of these assets that are not recoverable, if any, when we are no longer a controlling shareholder in Fortitude Holdings. As of December 31, 2019, the unamortized balances of the aforementioned prepaid insurance assets and related deferred acquisition costs were $ 2.3 billion (after-tax) and $ 0.4 billion (after-tax), respectively. This combined loss of $ 2.7 billion would be incremental to any gain or loss recognized on the 2019 Fortitude Sale. The incremental gain or loss we will recognize on the 2019 Fortitude Sale would be impacted, perhaps significantly, by market conditions existing at the time the 2019 Fortitude Sale closes. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2019 | |
BUSINESS COMBINATION | |
BUSINESS COMBINATION | 5. Business Combination On July 18, 2018, we completed the purchase of a 100 percent voting interest in Validus, a leading provider of reinsurance, primary insurance, and asset management services, for $ 5.5 billion in cash. The purchase was accounted for under the acquisition method. Accordingly, the total purchase price was allocated to the estimated fair values of assets acquired and liabilities assumed. This allocation resulted in the purchase price exceeding the fair value of net assets acquired, which results in a difference recorded as goodwill. Goodwill generated from the acquisition is attributable to expected synergies from future growth and potential future monetization opportunities. Goodwill related to the purchase of Validus assigned to our General Insurance operating segments was $ 1.8 billion for North America and $ 157 million for International. In addition, Validus participates in the market for insurance-linked securities (ILS) primarily through AlphaCat Managers, Ltd (AlphaCat Manager). AlphaCat Manager is an asset manager primarily for third-party investors and in connection with the issuance of ILS invests in AlphaCat funds which are considered VIEs. ILS are financial instruments for which the values are determined based on insurance losses caused primarily by natural catastrophes such as major earthquakes and hurricanes. We report the investment in AlphaCat funds, which is approximately $ 124 million and $ 116 million at December 31, 2019 and December 31, 2018, respectively, in Other Invested Assets in the Consolidated Balance Sheets. The following unaudited summarized pro forma consolidated income statement information assumes that the acquisition of Validus occurred as of January 1, 2017. The pro forma amounts are for comparative purposes only and may not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of the applicable period and may not be indicative of the results that will be attained in the future. Years Ended December 31, (dollars in millions, except per common share data) 2018* 2017* Total revenues $ 48,588 $ 52,009 Net income (loss) 16 ( 6,104) Net loss attributable to AIG common shareholders ( 51) ( 6,132) Loss per common share attributable to AIG common shareholders: Basic: Net loss attributable to AIG common shareholders ( 0.06) ( 6.59) Diluted: Net loss attributable to AIG common shareholders ( 0.06) ( 6.59) * Pro forma adjustments were made to Validus’ external reporting results prior to the acquisition date for the deconsolidation of certain asset management entities consistent with AIG’s post acquisition accounting, which had no impact on Net income attributable to Validus. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 6. Fair Value Measurements Fair Value Measurements on a Recurring Basis We carry certain of our financial instruments at fair value. We define the fair value of a financial instrument as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are responsible for the determination of the value of the investments carried at fair value and the supporting methodologies and assumptions. The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. We maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions. Fair Value Hierarchy Assets and liabilities recorded at fair value in the Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs: Level 1: Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments. Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The following is a description of the valuation methodologies used for instruments carried at fair value. These methodologies are applied to assets and liabilities across the levels discussed above, and it is the observability of the inputs used that determines the appropriate level in the fair value hierarchy for the respective asset or liability. Valuation Methodologies of Financial Instruments Measured at Fair Value Incorporation of Credit Risk in Fair Value Measurements Our Own Credit Risk. Fair value measurements for certain liabilities incorporate our own credit risk by determining the explicit cost for each counterparty to protect against its net credit exposure to us at the balance sheet date by reference to observable AIG credit default swaps (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, when applicable, which take into consideration all derivative positions with us, as well as collateral we post with the counterparty at the balance sheet date. For a description of how we incorporate our own credit risk in the valuation of embedded derivatives 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 fixed maturity securities based on internal models incorporate counterparty credit risk by using discount rates that take into consideration cash issuance spreads for similar instruments or other observable information. For fair values measured based on internal models, the cost of credit protection is determined under a discounted present value approach considering the market levels for single name CDS spreads for each specific counterparty, the mid-market value of the net exposure (reflecting the amount of protection required) and the weighted average life of the net exposure. CDS spreads are provided to us by an independent third party. We utilize an interest rate based on the benchmark London Interbank Offered Rate (LIBOR) curve to derive our discount rates. While this approach does not explicitly consider all potential future behavior of the derivative transactions or potential future changes in valuation inputs, we believe this approach provides a reasonable estimate of the fair value of the assets and liabilities, including consideration of the impact of non-performance risk. Fixed Maturity Securities Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure fixed maturity securities at fair value. Market price data is generally obtained from dealer markets. We employ independent third-party valuation service providers to gather, analyze, and interpret market information to derive fair value estimates for individual investments, based upon market-accepted methodologies and assumptions. The methodologies used by these independent third-party valuation service providers are reviewed and understood by management, through periodic discussion with and information provided by the independent third-party valuation service providers. In addition, as discussed further below, control processes are applied to the fair values received from independent third-party valuation service providers to ensure the accuracy of these values. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of market-accepted valuation methodologies, which may utilize matrix pricing, financial models, accompanying model inputs and various assumptions, provide a single fair value measurement for individual securities. The inputs used by the valuation service providers include, but are not limited to, market prices from completed transactions for identical securities and transactions for comparable securities, benchmark yields, interest rate yield curves, credit spreads, prepayment rates, default rates, recovery assumptions, currency rates, quoted prices for similar securities and other market-observable information, as applicable. If fair value is determined using financial models, these models generally take into account, among other things, market observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We have control processes designed to ensure that the fair values received from independent third-party valuation service providers are accurately recorded, that their data inputs and valuation techniques are appropriate and consistently applied and that the assumptions used appear reasonable and consistent with the objective of determining fair value. We assess the reasonableness of individual security values received from independent third-party valuation service providers through various analytical techniques, and have procedures to escalate related questions internally and to the independent third-party valuation service providers for resolution. To assess the degree of pricing consensus among various valuation service providers for specific asset types, we conduct comparisons of prices received from available sources. We use these comparisons to establish a hierarchy for the fair values received from independent third-party valuation service providers to be used for particular security classes. We also validate prices for selected securities through reviews by members of management who have relevant expertise and who are independent of those charged with executing investing transactions. When our independent third-party valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a price quote, which is generally non-binding, or by employing market accepted valuation models. Broker prices may be based on an income approach, which converts expected future cash flows to a single present value amount, with specific consideration of inputs relevant to particular security types. For structured securities, such inputs may include ratings, collateral types, geographic concentrations, underlying loan vintages, loan delinquencies and defaults, 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 management reviews. For those corporate debt instruments (for example, private placements) that are not traded in active markets or that are subject to transfer restrictions, valuations reflect illiquidity and non-transferability, based on available market evidence. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on credit spreads, yields or price levels of comparable securities, adjusted for illiquidity and structure. Fair values determined internally are also subject to management review to ensure that valuation models and related inputs are reasonable. The methodology above is relevant for all fixed maturity securities including residential mortgage backed securities (RMBS), commercial mortgage backed securities (CMBS), collateralized debt obligations (CDO), other asset-backed securities (ABS) and fixed maturity securities issued by government sponsored entities and corporate entities. Equity Securities Traded in Active Markets Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure equity securities at fair value. Market price data is generally obtained from exchange or dealer markets. Mortgage and Other Loans Receivable We estimate the fair value of mortgage and other loans receivable that are measured at fair value by using dealer quotations, discounted cash flow analyses and/or internal valuation models. The determination of fair value considers inputs such as interest rate, maturity, the borrower’s creditworthiness, collateral, subordination, guarantees, past-due status, yield curves, credit curves, prepayment rates, market pricing for comparable loans and other relevant factors. Other Invested Assets We initially estimate the fair value of investments in certain hedge funds, private equity funds and other investment partnerships by reference to the transaction price. Subsequently, we generally obtain the fair value of these investments from net asset value information provided by the general partner or manager of the investments, the financial statements of which are generally audited annually. We consider observable market data and perform certain control procedures to validate the appropriateness of using the net asset value as a fair value measurement. The fair values of other investments carried at fair value, such as direct private equity holdings, are initially determined based on transaction price and are subsequently estimated based on available evidence such as market transactions in similar instruments, other financing transactions of the issuer and other available financial information for the issuer, with adjustments made to reflect illiquidity as appropriate. Short-term Investments For short-term investments that are measured at amortized cost, the carrying amounts of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk. Securities purchased under agreements to resell (reverse repurchase agreements) are generally treated as collateralized receivables. We report certain receivables arising from securities purchased under agreements to resell as Short-term investments in the Consolidated Balance Sheets. When these receivables are measured at fair value, we use market-observable interest rates to determine fair value. Separate Account Assets Separate account assets are composed primarily of registered and unregistered open-end mutual funds that generally trade daily and are measured at fair value in the manner discussed above for equity securities traded in active markets. Freestanding Derivatives Derivative assets and liabilities can be exchange-traded or traded over-the-counter (OTC). We generally value exchange-traded derivatives such as futures and options using quoted prices in active markets for identical derivatives at the balance sheet date. OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in the instrument, as well as the availability of pricing information in the market. We generally use similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment. For certain OTC derivatives that trade in less liquid markets, where we generally do not have corroborating market evidence to support significant model inputs and cannot verify the model to market transactions, the transaction price may provide the best estimate of fair value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so the model value at inception equals the transaction price. We will update valuation inputs in these models only when corroborated by evidence such as similar market transactions, independent third-party valuation service providers and/or broker or dealer quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. We value our super senior credit default swap portfolio using prices obtained from vendors and/or counterparties. 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 methodologies for the super senior CDS portfolio have evolved over time in response to market conditions and the availability of market observable information. We have sought to calibrate the methodologies to available market information and to review the assumptions of the methodologies on a regular basis. 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 fair value recognized in earnings. These embedded derivatives are classified within Policyholder contract deposits. We have concluded these contracts contain either (i) a written option that guarantees a minimum accumulation value at maturity, (ii) a written option that guarantees annual withdrawals regardless of underlying market performance for a specific period or for life, or (iii) equity-indexed written options 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 policyholder behavior and capital market assumptions related 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 cash 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 mortality, 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 assumptions are subjective and based primarily on our historical experience. Because of the dynamic and complex nature of the projected cash flows with respect to embedded derivatives in our variable annuity contracts, 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 judgments regarding the capital market assumptions related to expected market rates of return, market volatility, credit spreads, correlations of certain market variables, fund performance and discount rates. Additionally, estimating the underlying cash flows for these products also involves judgments regarding 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, consistent 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 embedded derivatives in our equity-indexed annuity and life contracts, option pricing models are used to estimate fair value, taking into account the capital market 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 commonly viewed as being consistent with the credit spreads for highly-rated financial institutions (S&P AA-rated or above). A swap curve shows the fixed-rate leg of a non-complex swap against the floating rate (for example, LIBOR) leg of a related tenor. 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 (NPA) reflects a market participant’s view of our claims-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 and Retirement companies. Long-Term Debt The fair value of non-structured liabilities is generally determined by using market prices from exchange or dealer markets, when available, or discounting expected cash flows using the appropriate discount rate for the applicable maturity. We determine the fair value of structured liabilities and hybrid financial instruments (where performance is linked to structured interest rates, inflation or currency risks) using the appropriate derivative valuation methodology (described above) given the nature of the embedded risk profile. In addition, adjustments are made to the valuations of both non-structured and structured liabilities to reflect our own creditworthiness based on the methodology described under the caption “Incorporation of Credit Risk in Fair Value Measurements – Our Own Credit Risk” above. Borrowings under obligations of guaranteed investment agreements (GIAs), which are guaranteed by us, are recorded at fair value using discounted cash flow calculations based on interest rates currently being offered for similar contracts and our current market observable implicit credit spread rates with maturities consistent with those remaining for the contracts being valued. Obligations may be called at various times prior to maturity at the option of the counterparty. Interest rates on these borrowings are primarily fixed, vary by maturity and range up to 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 purchased. Liabilities arising from securities sold under agreements to repurchase are generally treated as collateralized borrowings. We estimate the fair value of liabilities arising under these agreements by using market-observable interest rates. This methodology considers such factors as the coupon rate, yield curves and other relevant factors. Fair values for securities sold but not yet purchased are based on current market prices. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used: December 31, 2019 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (a) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 135 $ 5,245 $ - $ - $ - $ 5,380 Obligations of states, municipalities and political subdivisions - 13,197 2,121 - - 15,318 Non-U.S. governments 60 14,809 - - - 14,869 Corporate debt - 147,973 1,663 - - 149,636 RMBS - 19,397 13,408 - - 32,805 CMBS - 13,377 1,053 - - 14,430 CDO/ABS - 10,962 7,686 - - 18,648 Total bonds available for sale 195 224,960 25,931 - - 251,086 Other bond securities: U.S. government and government sponsored entities - 2,121 - - - 2,121 Non-U.S. governments - - - - - - Corporate debt - 18 - - - 18 RMBS - 346 143 - - 489 CMBS - 272 50 - - 322 CDO/ABS - 187 3,545 - - 3,732 Total other bond securities - 2,944 3,738 - - 6,682 Equity securities 756 77 8 - - 841 Other invested assets (b) - 86 1,192 - - 1,278 Derivative assets: Interest rate contracts 1 3,199 - - - 3,200 Foreign exchange contracts - 1,034 6 - - 1,040 Equity contracts 5 593 171 - - 769 Credit contracts - - 3 - - 3 Other contracts - - 14 - - 14 Counterparty netting and cash collateral - - - ( 2,427) ( 1,806) ( 4,233) Total derivative assets 6 4,826 194 ( 2,427) ( 1,806) 793 Short-term investments 2,299 3,044 - - - 5,343 Other assets 57 2,212 89 - - 2,358 Separate account assets 89,069 4,203 - - - 93,272 Total $ 92,382 $ 242,352 $ 31,152 $ ( 2,427) $ ( 1,806) $ 361,653 Liabilities: Policyholder contract deposits $ - $ - $ 6,910 $ - $ - $ 6,910 Derivative liabilities: Interest rate contracts 4 2,745 - - - 2,749 Foreign exchange contracts - 1,025 - - - 1,025 Equity contracts 8 111 20 - - 139 Credit contracts - 24 65 - - 89 Other contracts - - 7 - - 7 Counterparty netting and cash collateral - - - ( 2,427) ( 527) ( 2,954) Total derivative liabilities 12 3,905 92 ( 2,427) ( 527) 1,055 Other liabilities - 45 - - - 45 Long-term debt - 2,062 - - - 2,062 Total $ 12 $ 6,012 $ 7,002 $ ( 2,427) $ ( 527) $ 10,072 December 31, 2018 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (a) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 53 $ 3,207 $ - $ - $ - $ 3,260 Obligations of states, municipalities and political subdivisions - 14,001 2,000 - - 16,001 Non-U.S. governments 69 14,445 11 - - 14,525 Corporate debt - 129,836 864 - - 130,700 RMBS - 20,178 14,199 - - 34,377 CMBS - 11,784 917 - - 12,701 CDO/ABS - 8,725 9,102 - - 17,827 Total bonds available for sale 122 202,176 27,093 - - 229,391 Other bond securities: U.S. government and government sponsored entities 11 2,654 - - - 2,665 Non-U.S. governments - 45 - - - 45 Corporate debt - 1,671 - - - 1,671 RMBS - 424 1,290 - - 1,714 CMBS - 311 77 - - 388 CDO/ABS - 454 4,478 - - 4,932 Total other bond securities 11 5,559 5,845 - - 11,415 Equity securities 1,213 13 27 - - 1,253 Other invested assets (b) - 341 587 - - 928 Derivative assets: Interest rate contracts 2 2,888 - - - 2,890 Foreign exchange contracts - 1,159 5 - - 1,164 Equity contracts 133 190 75 - - 398 Credit contracts - - 1 - - 1 Other contracts - - 15 - - 15 Counterparty netting and cash collateral - - - ( 1,713) ( 1,840) ( 3,553) Total derivative assets 135 4,237 96 ( 1,713) ( 1,840) 915 Short-term investments 2,416 599 - - - 3,015 Other assets - - 58 - - 58 Separate account assets 77,202 4,645 - - - 81,847 Total $ 81,099 $ 217,570 $ 33,706 $ ( 1,713) $ ( 1,840) $ 328,822 Liabilities: Policyholder contract deposits $ - $ - $ 4,116 $ - $ - $ 4,116 Derivative liabilities: Interest rate contracts 4 2,004 15 - - 2,023 Foreign exchange contracts - 858 - - - 858 Equity contracts 12 3 - - - 15 Credit contracts - 8 228 - - 236 Other contracts - - 6 - - 6 Counterparty netting and cash collateral - - - ( 1,713) ( 187) ( 1,900) Total derivative liabilities 16 2,873 249 ( 1,713) ( 187) 1,238 Other liabilities 16 11 - - - 27 Long-term debt - 2,213 - - - 2,213 Total $ 32 $ 5,097 $ 4,365 $ ( 1,713) $ ( 187) $ 7,594 (a) Represents netting of derivative exposures covered by qualifying master netting agreements. (b) Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $ 5.5 billion and $ 5.0 billion as of December 31, 2019 and December 31, 2018, respectively. Changes in Level 3 Recurring Fair Value Measurements The following tables present changes during the years ended December 31, 2019 and 2018 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Consolidated Balance Sheets at December 31, 2019 and 2018: Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross Reclassification Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers of Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out for Sale (a) Acquisition of Year at End of Year December 31, 2019 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,000 $ ( 2) $ 247 $ 282 $ 51 $ ( 457) $ - $ - $ 2,121 $ - Non-U.S. governments 11 5 1 ( 6) 5 ( 16) - - - - Corporate debt 864 ( 7) 88 ( 540) 1,513 ( 255) - - 1,663 - RMBS 14,199 782 55 ( 1,403) 83 ( 287) ( 21) - 13,408 - CMBS 917 24 47 448 58 ( 441) - - 1,053 - CDO/ABS 9,102 33 116 112 120 ( 1,780) ( 17) - 7,686 - Total bonds available for sale 27,093 835 554 ( 1,107) 1,830 ( 3,236) ( 38) - 25,931 - Other bond securities: Corporate debt - - - - - - - - - - RMBS 1,290 80 - ( 1,227) - - - - 143 2 CMBS 77 5 - ( 18) - ( 14) - - 50 6 CDO/ABS 4,478 361 - ( 1,198) - ( 96) - - 3,545 149 Total other bond securities 5,845 446 - ( 2,443) - ( 110) - - 3,738 157 Equity securities 27 - - ( 20) 2 ( 1) - - 8 1 Mortgage and other loans receivable - - - - - - - - - - Other invested assets 587 20 2 ( 33) 616 - - - 1,192 22 Other assets 58 - - ( 7) - - 38 - 89 - Total $ 33,610 $ 1,301 $ 556 $ ( 3,610) $ 2,448 $ ( 3,347) $ - $ - $ 30,958 $ 180 Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross Reclassification Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers of Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out for Sale (a) Acquisition of Year at End of Year Liabilities: Policyholder contract deposits $ 4,116 $ 1,947 $ - $ 847 $ - $ - $ - $ - $ 6,910 $ ( 1,307) Derivative liabilities, net: Interest rate contracts 15 3 - ( 18) - - - - - 1 Foreign exchange contracts ( 5) ( 7) - 6 - - - - ( 6) 3 Equity contracts ( 75) ( 43) - ( 33) - - - - ( 151) 51 Credit contracts 227 ( 84) - ( 81) - - - - 62 46 Other contracts ( 9) ( 67) - 69 - - - - ( 7) 66 Total derivative liabilities, net (b) 153 ( 198) - ( 57) - - - - ( 102) 167 Total $ 4,269 $ 1,749 $ - $ 790 $ - $ - $ - $ - $ 6,808 $ ( 1,140) Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross Reclassification Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers of Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out for Sale (a) Acquisition of Year at End of Year December 31, 2018 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,404 $ - $ ( 152) $ ( 66) $ 54 $ ( 240) $ - $ - $ 2,000 $ - Non-U.S. governments 8 ( 9) 5 ( 1) 13 ( 5) - - 11 - Corporate debt 1,173 ( 74) ( 2) ( 207) 780 ( 806) - - 864 - RMBS 16,136 838 ( 300) ( 2,424) 8 ( 66) - 7 14,199 - CMBS 624 23 ( 29) 207 111 ( 20) - 1 917 - CDO/ABS 8,651 40 ( 42) ( 371) 1,783 ( 1,123) - 164 9,102 - Total bonds available for sale 28,996 81 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENTS | |
INVESTMENTS | 7. 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, 2019 or 2018. On January 1, 2018, AIG adopted ASU 2016-01, the Financial Instruments Recognition and Measurement standard for equity securities which eliminates the available for sale classification and treatment for equity securities. As a result, equity securities that do not follow the equity method of accounting, are measured at fair value with changes in fair value recognized in net investment income. Prior to the adoption of this standard, unrealized gains and losses from available for sale investments in fixed maturity and equity securities carried at fair value were reported as a separate component of Accumulated other comprehensive income, net of deferred policy acquisition costs and deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity and equity securities measured at fair value at our election are reflected in Net investment income (for insurance subsidiaries) or Other income (for Other Operations). Investments in fixed maturity and equity securities are recorded on a trade-date basis. Premiums and discounts arising from the purchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain RMBS, CMBS and CDO/ABS, (collectively, structured securities), recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that are not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For purchased credit impaired (PCI) securities, at acquisition, the difference between the undiscounted expected future cash flows and the recorded investment in the securities represents the initial accretable yield, which is to be accreted into net investment income over the securities’ remaining lives on an effective level-yield basis. Subsequently, effective yields recognized on PCI securities are recalculated and adjusted prospectively to reflect changes in the contractual benchmark interest rates on variable rate securities and any significant increases in undiscounted expected future cash flows arising due to reasons other than interest rate changes. Securities Available for Sale The following table presents the amortized cost or cost and fair value of our available for sale securities: Other-Than- Amortized Gross Gross Temporary Cost or Unrealized Unrealized Fair Impairments (in millions) Cost Gains Losses Value in AOCI (a) December 31, 2019 Bonds available for sale: U.S. government and government sponsored entities $ 5,108 $ 316 $ ( 44) $ 5,380 $ - Obligations of states, municipalities and political subdivisions 13,960 1,390 ( 32) 15,318 - Non-U.S. governments 14,042 884 ( 57) 14,869 ( 18) Corporate debt 138,046 12,090 ( 500) 149,636 7 Mortgage-backed, asset-backed and collateralized: RMBS 29,802 3,067 ( 64) 32,805 1,149 CMBS 13,879 576 ( 25) 14,430 34 CDO/ABS 18,393 348 ( 93) 18,648 14 Total mortgage-backed, asset-backed and collateralized 62,074 3,991 ( 182) 65,883 1,197 Total bonds available for sale (b) $ 233,230 $ 18,671 $ ( 815) $ 251,086 $ 1,186 December 31, 2018 Bonds available for sale: U.S. government and government sponsored entities $ 3,170 $ 132 $ ( 42) $ 3,260 $ - Obligations of states, municipalities and political subdivisions 15,421 701 ( 121) 16,001 4 Non-U.S. governments 14,376 451 ( 302) 14,525 - Corporate debt 130,436 3,911 ( 3,647) 130,700 4 Mortgage-backed, asset-backed and collateralized: RMBS 31,940 2,754 ( 317) 34,377 1,155 CMBS 12,673 242 ( 214) 12,701 31 CDO/ABS 17,764 228 ( 165) 17,827 17 Total mortgage-backed, asset-backed and collateralized 62,377 3,224 ( 696) 64,905 1,203 Total bonds available for sale (b) $ 225,780 $ 8,419 $ ( 4,808) $ 229,391 $ 1,211 (a) Represents the amount of other-than-temporary impairments recognized in Accumulated other comprehensive income (loss). 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, 2019 and 2018, bonds available for sale held by us that were below investment grade or not rated totaled $ 27.8 billion and $ 28.8 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, 2,019.0 Bonds available for sale: U.S. government and government sponsored entities $ 1,461 $ 44 $ 63 $ - $ 1,524 $ 44 Obligations of states, municipalities and political subdivisions 672 21 246 11 918 32 Non-U.S. governments 1,105 12 343 45 1,448 57 Corporate debt 11,868 319 2,405 181 14,273 500 RMBS 3,428 28 1,367 36 4,795 64 CMBS 1,877 16 367 9 2,244 25 CDO/ABS 3,920 53 2,571 40 6,491 93 Total bonds available for sale $ 24,331 $ 493 $ 7,362 $ 322 $ 31,693 $ 815 December 31, 2,018.0 Bonds available for sale: U.S. government and government sponsored entities $ 574 $ 13 $ 873 $ 29 $ 1,447 $ 42 Obligations of states, municipalities and political subdivisions 1,965 51 1,530 70 3,495 121 Non-U.S. governments 3,851 149 2,422 153 6,273 302 Corporate debt 47,364 2,181 20,056 1,466 67,420 3,647 RMBS 5,231 94 5,641 223 10,872 317 CMBS 2,646 47 4,264 167 6,910 214 CDO/ABS 9,169 144 1,324 21 10,493 165 Total bonds available for sale $ 70,800 $ 2,679 $ 36,110 $ 2,129 $ 106,910 $ 4,808 At December 31, 2019, we held 5,695 individual fixed maturity securities that were in an unrealized loss position, of which 1,254 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, 2019 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. Contractual Maturities of Fixed Maturity Securities Available for Sale The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity: Total Fixed Maturity Securities Available for Sale (in millions) Amortized Cost Fair Value December 31, 2019 Due in one year or less $ 10,268 $ 10,441 Due after one year through five years 44,017 45,226 Due after five years through ten years 42,074 44,858 Due after ten years 74,797 84,678 Mortgage-backed, asset-backed and collateralized 62,074 65,883 Total $ 233,230 $ 251,086 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, 2019 2018 2017 Gross Gross Gross Gross Gross Gross Realized Realized Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Gains Losses Fixed maturity securities $ 650 $ 330 $ 331 $ 476 $ 725 $ 300 Equity securities - - 16 - 107 19 Total $ 650 $ 330 $ 347 $ 476 $ 832 $ 319 For the years ended December 31, 2019, 2018 and 2017, the aggregate fair value of available for sale securities sold was $ 22.0 billion, $ 25.1 billion and $ 31.3 billion, respectively, which resulted in net realized capital gains (losses) of $ 320 million, $( 129) million and $ 0.5 billion, respectively. Other Securities Measured at Fair Value The following table presents the fair value of fixed maturity securities measured at fair value based on our election of the fair value option and equity securities measured at fair value: December 31, 2019 December 31, 2018 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 2,121 28 % $ 2,665 21 % Non-U.S. governments - - 45 - Corporate debt 18 - 1,671 13 Mortgage-backed, asset-backed and collateralized : RMBS 489 7 1,714 14 CMBS 322 4 388 3 CDO/ABS and other collateralized 3,732 50 4,932 39 Total mortgage-backed, asset-backed and collateralized 4,543 61 7,034 56 Total fixed maturity securities 6,682 89 11,415 90 Equity securities 841 11 1,253 10 Total $ 7,523 100 % $ 12,668 100 % Other Invested Assets The following table summarizes the carrying amounts of other invested assets: December 31, December 31, (in millions) 2019 2018 Alternative investments (a) (b) $ 8,845 $ 8,966 Investment real estate (c) 8,491 8,935 All other investments 1,456 1,440 Total $ 18,792 $ 19,341 (a) At December 31, 2019, included hedge funds of $ 3.3 billion, private equity funds of $ 5.2 billion, and affordable housing partnerships of $ 331 million. At December 31, 2018, included hedge funds of $ 4.2 billion, private equity funds of $ 4.3 billion, and affordable housing partnerships of $ 438 million. (b) At December 31, 2019, approximately 88 percent of our hedge fund portfolio is available for redemption in 2020. The remaining 12 percent will be available for redemption between 2021 and 2027. (c) Net of accumulated depreciation of $ 703 million and $ 598 million in 2019 and 2018, respectively. 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. Prior to 2019, for the investments of AIG’s Other Operations, such changes were reported in Other income. Prior to January 1, 2018, 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 were reported at fair value with changes in fair value recognized as a component of Accumulated other comprehensive income. These investments were subject to other-than-temporary impairment evaluations. The gross unrealized loss recorded in Accumulated other comprehensive income on such investments was $ 45 million at December 31, 2017, the majority of which pertained to investments in private equity funds and hedge funds that have been in continuous unrealized loss positions for less than 12 months. Effective January 1, 2018, upon the adoption of the Financial Instruments Recognition and Measurement standard, these investments are no longer accounted for as available for sale securities. The new standard requires these investments to be measured at fair value with the change in fair value recognized in earnings. As a result, beginning in 2018, these investments are no longer subject to the other-than-temporary impairment evaluation. 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. Prior to 2019, for the investments of AIG’s Other Operations, such changes were 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. Hedge funds are reported as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag. The financial statements of these investees are generally audited annually. Summarized Financial Information of Equity Method Investees The following is the aggregated summarized financial information of our equity method investees, including those for which the fair value option has been elected: Years Ended December 31, (in millions) 2019 2018 2017 Operating results: Total revenues $ 8,045 $ 15,310 $ 13,066 Total expenses ( 3,115) ( 3,200) ( 6,835) Net income $ 4,930 $ 12,110 $ 6,231 At December 31, (in millions) 2019 2018 Balance sheet: Total assets $ 93,773 $ 96,915 Total liabilities $ ( 14,218) $ ( 21,063) The following table presents the carrying amount and ownership percentage of equity method investments at December 31, 2019 and 2018: 2019 2018 Carrying Ownership Carrying Ownership (in millions) Value Percentage Value Percentage Equity method investments $ 5,911 Various $ 6,520 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. These investments are reported at cost, less depreciation and are subject to impairment review, as discussed below. Investments in Life Settlements Investments in life settlements were accounted for under the investment method. Under the investment method, we recognized our initial investment in life settlements at the transaction price plus all initial direct external costs. Continuing costs to keep the policy in force, primarily life insurance premiums, increased the carrying amount of the investment. We recognized income on individual investments in life settlements upon the death of the insured, at an amount equal to the excess of the investment proceeds over the carrying amount of the investment at that time. These investments were subject to impairment review, as discussed below. During 2017, income recognized on investments in life settlements was $ 266 million and is included in Net investment income in the Consolidated Statements of Income. We sold the remaining portion of our life settlements portfolio in 2017. Net Investment Income Net investment income represents income primarily from the following sources: Interest income and related expenses, including amortization of premiums and accretion of discounts 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 stocks. Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option. Earnings from alternative investments. The difference between the carrying amount of an investment in life settlements and the life insurance proceeds of the underlying life insurance policy recorded in income upon the death of the insured. The following table presents the components of Net investment income: Years Ended December 31, (in millions) 2019 2018 2017 Available for sale fixed maturity securities, including short-term investments $ 10,768 $ 10,323 $ 10,435 Other fixed maturity securities 1,015 7 660 Equity securities (a) 159 ( 162) 34 Interest on mortgage and other loans 2,030 1,874 1,661 Alternative investments (b) 1,088 655 1,475 Real estate 304 257 144 Other investments ( 220) 15 290 Total investment income 15,144 12,969 14,699 Investment expenses 525 493 520 Net investment income $ 14,619 $ 12,476 $ 14,179 (a) Upon the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, the change in fair value of all equity securities is included in Net investment income. (b) Includes income from hedge funds, private equity funds and affordable housing partnerships. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag. 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 redemptions 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 securities and certain other invested assets for other-than-temporary impairments. Impairments on investments in life settlements. Changes in fair value of derivatives except for those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized capital gains (losses). Exchange gains and losses resulting from foreign currency transactions. The following table presents the components of Net realized capital gains (losses): Years Ended December 31, (in millions) 2019 2018 2017 Sales of fixed maturity securities $ 320 $ ( 145) $ 425 Sales of equity securities (a) - 16 88 Other-than-temporary impairments: Severity - - ( 2) Change in intent ( 3) ( 87) ( 9) Foreign currency declines ( 18) ( 15) ( 11) Issuer-specific credit events ( 147) ( 147) ( 234) Adverse projected cash flows ( 6) ( 2) ( 4) Provision for loan losses ( 46) ( 92) ( 50) Foreign exchange transactions 227 ( 182) 489 Variable annuity embedded derivatives, net of related hedges ( 294) 304 ( 1,374) All other derivatives and hedge accounting ( 22) 338 ( 368) Impairments on investments in life settlements - - ( 360) Loss on sale of private equity funds - ( 321) - Other (b) 621 203 30 Net realized capital gains (losses) $ 632 $ ( 130) $ ( 1,380) (a) Upon the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, the change in fair value of all equity securities is included in Net investment income. (b) In 2019, includes $ 200 million from the sale and concurrent leaseback of our corporate headquarters and $ 300 million as a result of sales in investment real estate properties. In 2018, primarily includes $ 96 million and $ 49 million of realized gains on the sale of shares of OneMain Holdings, Inc. and an investment in Castle Holdings LLC’s aircraft assets, respectively. Change in Unrealized Appreciation (Depreciation) of Investments The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments: Years Ended December 31, (in millions) 2019 2018 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ 14,245 $ ( 9,920) Other investments ( 70) ( 88) Total increase (decrease) in unrealized appreciation (depreciation) of investments * $ 14,175 $ ( 10,008) * Excludes net unrealized gains and losses attributable to businesses held for sale at December 31, 2019. The following table summarizes the unrealized gains and losses recognized in Net Investment Income during the reporting period on equity securities still held at the reporting date: Years Ended December 31, 2019 2018 Other Other Invested Invested (in millions) Equities Assets Total Equities Assets Total Net gains and losses recognized during the year on equity securities $ 159 $ 744 $ 903 $ ( 184) $ 342 $ 158 Less: Net gains and losses recognized during the year on equity securities sold during the year 39 159 198 56 23 79 Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date $ 120 $ 585 $ 705 $ ( 240) $ 319 $ 79 Evaluating Investments for Other-Than-Temporary Impairments Fixed Maturity Securities If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, an other-than-temporary impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized capital losses. When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. For fixed maturity securities for which a credit impairment has occurred, the amortized cost is written down to the estimated recoverable value with a corresponding charge to realized capital losses. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not related to a credit impairment is presented in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized (a separate component of accumulated other comprehensive income). When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class: Current delinquency rates; Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Expected prepayment speeds. For corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers the fair value as the recoverable value when available information does not indicate that another value is more relevant or reliable. When management identifies information that supports a recoverable value other than the fair value, the determination of a recoverable value considers scenarios specific to the issuer and the security, and may be based upon estimates of outcomes of corporate restructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets. We consider severe price declines in our assessment of potential credit impairments. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. In periods subsequent to the recognition of an other-than-temporary impairment charge for available for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and the expected undiscounted recoverable value over the remaining expected holding period of the security. Credit Impairments The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities: Years Ended December 31, (in millions) 2019 2018 2017 Balance, beginning of year $ - $ 526 $ 1,098 Increases due to: Credit impairments on new securities subject to impairment losses 136 59 122 Additional credit impairments on previously impaired securities 17 90 74 Reductions due to: Credit impaired securities fully disposed for which there was no prior intent or requirement to sell ( 64) ( 145) ( 99) Accretion on securities previously impaired due to credit * ( 20) ( 530) ( 669) Balance, end of year $ 69 $ - $ 526 * 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 On January 1, 2018, AIG adopted the Financial Instruments Recognition and Measurement standard for equity securities. The standard required equity securities to be measured at fair value with changes in fair value recognized in earnings each reporting period. As a result of the standard, equity securities with readily determinable fair values were no longer required to be evaluated for other-than-temporary-impairment. Prior to the adoption of the Recognition and Measurement standard on January 1, 2018, we evaluated our available for sale equity securities for impairment by considering such securities as candidates for other-than-temporary impairment if they had met any of the following criteria: The security had traded at a significant ( 25 percent or more) discount to cost for an extended period of time ( nine A discrete credit event had occurred resulting in (i) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under the bankruptcy laws or any similar laws intended for court-supervised reorganization of insolvent enterprises; or (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than the par value of their claims; or We had 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 was other-than-temporarily impaired required the judgment of management and consideration of the fundamental condition of the issuer, its near-term prospects and all the relevant facts and circumstances. In addition to the above criteria, all equity securities that have been in a continuous decline in value below cost over 12 months are impaired. We also considered 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 method investments in private equity funds, hedge funds and other entities are evaluated for impairment each reporting period. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investments and specific inherent risks. Such risks may evolve based on the nature of the underlying investments. Our investments in life settlements were monitored for impairment on a contract-by-contract basis quarterly. An investment in life settlements was considered impaired if the undiscounted cash flows resulting from the expected proceeds would not be sufficient to recover our estimated future carrying amount, which was the current carrying amount for the investment in life settlements plus anticipated undiscounted future premiums and other capitalizable future costs, if any. Impaired investments in life settlements were written down to their estimated fair value which was determined on a discounted cash flow basis, incorporating current market mortality assumptions and market yields or by repricing to the anticipated sale price as appropriate. In general, fair value estimates for the investments in life settlements were calculated using cash flows based on medical underwriting ratings of the policies from a third-party underwriter, applied to an industry mortality table. Our mortality assumptions were based on an industry table as supplemented with proprietary data on the older age mortality of U.S. insured lives. Mortality improvement factors were 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 were used in our estimate of future net cash flows from the investments in life settlements. We sold the remaining portion of our life settlements portfolio in 2017. Our investments in aircraft assets and real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compare expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings. We sold the remaining portion of our aircraft assets in 2018. Purchased Credit Impaired (PCI) Securities We purchase certain RMBS securities that have experienced deterioration in credit quality since their issuance. We determine whether it is probable at acquisition that we will not collect all contractually required payments for these PCI securities, including both principal and interest. At acquisition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security is determined based on our best estimate using key assumptions, such as interest rates, default rates and prepayment speeds. At acquisition, the difference between the undiscounted expected future cash flows of the PCI securities and the recorded investment in the securities represents the initial accretable yield, which is accreted into Net investment income over their remaining lives on an effective yield basis. Additionally, the difference between the contractually required payments on the PCI securities and the undiscounted expected future cash flows represents the non-accretable difference at acquisition. The accretable yield and the non-accretable difference will change over time, based on actual payments received and changes in estimates of undiscounted expected future cash flows, which are discussed further below. On a quarterly basis, the undiscounted expected future cash flows associated with PCI securities are re-evaluated based on updates to key assumptions. Declines in undiscounted expected future cash flows due to further credit deterioration as well as changes in the expected timing of the cash flows can result in the recognition of an other-than-temporary impairment charge, as PCI securities are subject to our policy for evaluating investments for other-than-temporary impairment. Changes to undiscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI securities will change the accretable yield prospectively. Significant increases in undiscounted expected future cash flows for reasons other than interest rate changes are recognized prospectively as adjustments to the accretable yield. The following tables present information on our PCI securities, which are included in bonds available for sale: (in millions) At Date of Acquisition Contractually required payments (principal and interest) $ 35,139 Cash flows expected to be collected * 28,720 Recorded investment in acquired securities 19,382 * Represents undiscounted expected cas |
LENDING ACTIVITIES
LENDING ACTIVITIES | 12 Months Ended |
Dec. 31, 2019 | |
LENDING ACTIVITIES | |
LENDING ACTIVITIES | 8. 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 principal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned. Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method. Premiums and discounts on purchased residential mortgages are also amortized to income as an adjustment to earnings using the interest method. Life insurance policy loans 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 policy. The following table presents the composition of Mortgage and other loans receivable, net: December 31, December 31, (in millions) 2019 2018 Commercial mortgages * $ 36,170 $ 32,882 Residential mortgages 6,683 6,532 Life insurance policy loans 2,065 2,147 Commercial loans, other loans and notes receivable 2,504 1,971 Total mortgage and other loans receivable 47,422 43,532 Allowance for credit losses ( 438) ( 397) Mortgage and other loans receivable, net $ 46,984 $ 43,135 * Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 23 percent and 10 percent, respectively, at December 31, 2019, and 22 percent and 11 percent, respectively, at December 31, 2018). 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, 2019 Loan-to-Value Ratios (b) Less than 65% $ 23,013 $ 2,440 $ 245 $ 25,698 65% to 75% 9,007 899 40 9,946 76% to 80% 200 6 - 206 Greater than 80% 184 2 134 320 Total commercial mortgages $ 32,404 $ 3,347 $ 419 $ 36,170 December 31, 2018 Loan-to-Value Ratios (b) Less than 65% $ 19,204 $ 2,543 $ 250 $ 21,997 65% to 75% 9,060 300 203 9,563 76% to 80% 476 20 15 511 Greater than 80% 596 103 112 811 Total commercial mortgages $ 29,336 $ 2,966 $ 580 $ 32,882 (a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 2.0X and 1.9X at December 31, 2019 and 2018, respectively. (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. Our weighted average loan-to-value ratio was 56 percent and 58 percent at December 31, 2019, and 2018, respectively. The following table presents the credit quality performance indicators for commercial mortgages: Number Percent of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total (c) Total $ December 31, 2019 Credit Quality Performance Indicator: In good standing 736 $ 13,698 $ 10,553 $ 5,332 $ 3,663 $ 2,211 $ 522 $ 35,979 99 % Restructured (a) 3 - 89 - - 101 - 190 1 90 days or less delinquent 1 1 - - - - - 1 - >90 days delinquent or in process of foreclosure - - - - - - - - - Total (b) 740 $ 13,699 $ 10,642 $ 5,332 $ 3,663 $ 2,312 $ 522 $ 36,170 100 % Allowance for credit losses: Specific $ - $ 2 $ 1 $ - $ 6 $ - $ 9 - % General 81 153 44 30 14 5 327 1 Total allowance for credit losses $ 81 $ 155 $ 45 $ 30 $ 20 $ 5 $ 336 1 % December 31, 2018 Credit Quality Performance Indicator: In good standing 762 $ 11,190 $ 9,774 $ 5,645 $ 3,074 $ 2,507 $ 580 $ 32,770 100 % Restructured (a) 2 - 96 - - 16 - 112 - 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure - - - - - - - - - Total (b) 764 $ 11,190 $ 9,870 $ 5,645 $ 3,074 $ 2,523 $ 580 $ 32,882 100 % Allowance for credit losses: Specific $ - $ 2 $ - $ - $ 1 $ - $ 3 - % General 122 104 51 13 19 6 315 1 Total allowance for credit losses $ 122 $ 106 $ 51 $ 13 $ 20 $ 6 $ 318 1 % (a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see below. (b) Does not reflect allowance for credit losses. (c) Our commercial mortgage loan portfolio is current as to payments of principal and interest, for both periods presented. 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. Methodology 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 not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. Impairment of commercial mortgages is typically determined using the fair value of collateral while impairment of other loans is typically determined using the present value of cash flows or the loan’s observable market price. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on statistical models primarily driven by past due status, debt service 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 uncollectible, the uncollectible portion of the carrying 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 recorded 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 mortgages in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan. The following table presents a rollforward of the changes in the allowance for losses on Mortgage and other loans receivable: Years Ended December 31, 2019 2018 2017 Commercial Other Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 318 $ 79 $ 397 $ 247 $ 75 $ 322 $ 194 $ 103 $ 297 Loans charged off ( 2) ( 3) ( 5) ( 17) ( 2) ( 19) ( 22) ( 3) ( 25) Recoveries of loans previously charged off - - - - 1 1 - 1 1 Net charge-offs ( 2) ( 3) ( 5) ( 17) ( 1) ( 18) ( 22) ( 2) ( 24) Provision for loan losses 20 26 46 88 5 93 75 ( 26) 49 Allowance, end of year $ 336 * $ 102 $ 438 $ 318 * $ 79 $ 397 $ 247 * $ 75 $ 322 * Of the total allowance at the end of the year, $ 10 million, $ 3 million and $ 5 million relate to individually assessed credit losses on $ 148 million, $ 54 million and $ 82 million of commercial mortgages as of December 31, 2019, 2018 and 2017, respectively. Troubled Debt Restructurings We modify loans to optimize their returns and improve their collectability, among other things. When we undertake such a modification with a borrower that is experiencing financial difficulty and the modification involves us granting a concession to the troubled debtor, the modification is a troubled debt restructuring (TDR). We assess whether a borrower is experiencing financial difficulty based on a variety of factors, including the borrower’s current default on any of its outstanding debt, the probability of a default on any of its debt in the foreseeable future without the modification, the insufficiency of the borrower’s forecasted cash flows to service any of its outstanding debt (including both principal and interest), and the borrower’s inability to access alternative third-party financing at an interest rate that would be reflective of current market conditions for a non-troubled debtor. Concessions granted may include extended maturity dates, interest rate changes, principal or interest forgiveness, payment deferrals and easing of loan covenants. During the year ended December 31, 2019, loans with a carrying value of $ 86 million were modified in TDRs. Loans that had been modified in TDRs during the year ended December 31, 2018 have been fully paid off. |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2019 | |
REINSURANCE | |
REINSURANCE | 9. Reinsurance In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. In addition, our general insurance subsidiaries assume reinsurance from other insurance companies. We determine the portion of the incurred but not reported (IBNR) loss that will be recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss adjustment expenses incurred, ceded unearned premiums and ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for doubtful accounts requires judgment for which key inputs typically include historical trends regarding uncollectible balances, disputes and credit events as well as specific reviews of balances in dispute or subject to credit impairment. The allowance for doubtful accounts on reinsurance assets was $ 111 million and $ 140 million at December 31, 2019 and 2018, respectively. Changes in the allowance for doubtful accounts on reinsurance assets are reflected in Policyholder benefits and losses incurred within the Consolidated Statements of Income. The following table provides supplemental information for loss and benefit reserves, gross and net of ceded reinsurance: At December 31, 2019 2018 As Net of As Net of (in millions) Reported Reinsurance Reported Reinsurance Liability for unpaid losses and loss adjustment expenses $ ( 78,328) $ ( 47,259) $ ( 83,639) $ ( 51,949) Future policy benefits for life and accident and health insurance contracts ( 50,512) ( 49,670) ( 44,935) ( 43,936) Policyholder contract deposits ( 151,869) ( 150,944) ( 142,262) ( 141,407) Reserve for unearned premiums ( 18,269) ( 15,067) ( 19,248) ( 16,300) Reinsurance assets (a) 36,038 36,492 (a) Reinsurance assets excludes (i) allowance for doubtful accounts of $ 111 million and $ 140 million for the years ended December 31, 2019 and 2018, respectively, and (ii) paid loss recoveries of $ 2,050 million and $ 1,820 million for the years ended December 31, 2019 and 2018, respectively. 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 over the contract period in proportion to the protection received. Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of Reinsurance assets. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsurers. Any subsequent differences arising on such estimates are recorded in the periods in which they are determined. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premiums. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsureds. Any subsequent differences arising on such estimates are recorded in the periods in which they are determined. For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. The following table presents short-duration insurance premiums written and earned: Years Ended December 31, (in millions) 2019 2018 2017 Premiums written: Direct $ 29,338 $ 30,368 $ 30,229 Assumed 5,808 4,186 3,065 Ceded ( 9,692) ( 7,757) ( 7,535) Net $ 25,454 $ 26,797 $ 25,759 Premiums earned: Direct $ 30,017 $ 31,450 $ 30,928 Assumed 6,395 4,638 3,374 Ceded ( 9,526) ( 8,164) ( 7,904) Net $ 26,886 $ 27,924 $ 26,398 For the years ended December 31, 2019, 2018 and 2017, reinsurance recoveries, which reduced losses and loss adjustment expenses incurred, amounted to $ 4.7 billion, $ 9.8 billion and $ 1.5 billion, respectively. Retroactive reinsurance agreements are reinsurance agreements under which our reinsurer agrees to reimburse us as a result of past insurable events. For these agreements, the excess of the amounts ultimately collectible under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves. The amount of the deferral is recalculated each period based on loss payments and updated estimates. If the consideration paid exceeds the ultimate losses collectible under the agreement, the net loss on the agreement is recognized in income immediately. Ceded loss reserves under retroactive agreements were $ 13.9 billion and $ 13.8 billion, and the deferred gain liability was $ 1.8 billion and $ 1.8 billion, as of December 31, 2019 and 2018, respectively. The effect on income from amortization of the deferred gain was $ 219 million, $ 394 million and $ 316 million for the years ended December 31, 2019, 2018 and 2017, respectively. In the first quarter of 2017, we entered into an adverse development reinsurance agreement with NICO, under which we transferred to NICO 80 percent of the reserve risk 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 the losses on subject business paid on or after January 1, 2016 in excess of $ 25 billion of net paid losses, up to an aggregate limit of $ 25 billion. We account for this transaction as retroactive reinsurance. This transaction resulted in a gain, which under U.S. GAAP retroactive reinsurance accounting is deferred and amortized into income over the settlement period. NICO created a collateral trust account as security for their claim payment obligations to us, into which they deposited the consideration paid under the agreement, and Berkshire Hathaway Inc. has provided a parental guarantee to secure NICO’s obligations under the agreement. Long-Duration Reinsurance Long-duration reinsurance is effected principally under yearly renewable term treaties. The premiums with respect to these treaties are earned over the contract period in proportion to the protection provided. Amounts recoverable from reinsurers on long-duration contracts are estimated in a manner consistent with the assumptions used for the underlying policy benefits and are presented as a component of Reinsurance assets. The following table presents premiums earned and policy fees for our long-duration life insurance and annuity operations: Years Ended December 31, (in millions) 2019 2018 2017 Premiums Direct $ 4,363 $ 3,489 $ 5,771 Assumed 228 56 15 Ceded ( 916) ( 855) ( 810) Net $ 3,675 $ 2,690 $ 4,976 Policy Fees Direct $ 3,016 $ 2,792 $ 2,936 Assumed - - - Ceded ( 1) ( 1) ( 1) Net $ 3,015 $ 2,791 $ 2,935 Long-duration reinsurance recoveries, which reduced Policyholder benefits and losses incurred, was approximately $ 1.0 billion, $ 778 million and $ 1.0 billion for the years ended December 31, 2019, 2018 and 2017, respectively. The following table presents long-duration insurance in-force ceded to other insurance companies: At December 31, (in millions) 2019 2018 2017 Long-duration insurance in force ceded $ 264,732 $ 228,846 $ 202,402 Long-duration insurance in-force assumed as a percentage of gross long-duration insurance in-force was 0.02 percent at December 31, 2019, and 0.03 percent at 2018 and 2017; and premiums assumed represented 5 percent, 1.6 percent and 0.2 percent of gross premiums for the years ended December 31, 2019, 2018 and 2017, respectively. The U.S. Life and Retirement companies manage the capital impact of their statutory reserve requirements, including those resulting from the NAIC Model Regulation “Valuation of Life Insurance Policies” (Regulation XXX) and NAIC Actuarial Guideline 38 (Guideline AXXX), through unaffiliated and affiliated reinsurance transactions. Effective July 1, 2016, one of the U.S. Life and Retirement companies entered into an agreement to cede approximately $ 5 billion of statutory 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, previously 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 U.S. GAAP, these unaffiliated reinsurance transactions use deposit accounting with a reinsurance risk charge recorded in income, whereas such affiliated transactions are eliminated in consolidation. Under one affiliated reinsurance arrangement, one of the U.S. Life and Retirement companies obtains letters of credit to support statutory recognition of the ceded reinsurance. As of December 31, 2019, this subsidiary had two bilateral letters of credit totaling $ 400 million, which were issued on February 7, 2014 and expire on February 7, 2023. The letters of credit are subject to reimbursement by AIG Parent in the event of a drawdown. For additional information on the use of affiliated reinsurance for Regulation XXX and Guideline AXXX reserves see Note 20. Reinsurance Security Our third-party reinsurance arrangements do not relieve us from our direct obligations to our beneficiaries. Thus, a credit exposure exists with respect to both short-duration and long-duration reinsurance ceded to the extent that any reinsurer fails to meet the obligations assumed under any reinsurance agreement. We hold substantial collateral as security under related reinsurance agreements in the form of funds, securities, and/or letters of credit. A provision has been recorded for estimated unrecoverable reinsurance. We believe that no exposure to a single reinsurer represents an inappropriate concentration of credit risk to AIG. Gross reinsurance assets due from reinsurers exceeding 5 percent of our total reinsurance assets were approximately $ 19.0 billion and $ 18.9 billion at December 31, 2019 and 2018, respectively, of which approximately $ 2.8 billion and $ 3.7 billion at December 31, 2019 and 2018, respectively, was not secured by collateral. |
DEFERRED POLICY ACQUISITION COS
DEFERRED POLICY ACQUISITION COSTS | 12 Months Ended |
Dec. 31, 2019 | |
DEFERRED POLICY ACQUISITION COSTS | |
DEFERRED POLICY ACQUISITION COSTS | 10. Deferred Policy Acquisition Costs Deferred policy acquisition costs (DAC) represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such deferred policy acquisition costs generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analyzed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts. We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates. Short-duration insurance contracts: Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, generally 12 months. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC. We assess the recoverability of DAC on an annual basis or more frequently if circumstances indicate an impairment may have occurred. This assessment is performed by comparing recorded net unearned premiums and anticipated investment income on in-force business to the sum of expected losses and loss adjustment expenses incurred, unamortized DAC and maintenance costs. If the sum of these costs exceeds the amount of recorded net unearned premiums and anticipated investment income, the excess is recognized as an offset against the asset established for DAC. This offset is referred to as a premium deficiency charge. Increases in expected losses and loss adjustment expenses incurred can have a significant impact on the likelihood and amount of a premium deficiency charge. Long-duration insurance contracts: Policy acquisition costs for participating life, traditional life and accident and health insurance products are generally deferred and amortized, with interest, over the premium paying period. The assumptions used to calculate the benefit liabilities and DAC for these traditional products are set when a policy is issued and do not change with changes in actual experience, unless a loss recognition event occurs. These “locked-in” assumptions include mortality, morbidity, persistency, maintenance expenses and investment returns, and include margins for adverse deviation to reflect uncertainty given that actual experience might deviate from these assumptions. A loss recognition event occurs when there is a shortfall between the carrying 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: Certain policy acquisition costs and policy issuance costs related to universal life and investment-type products (collectively, investment-oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts. DAC on investment-oriented contracts were approximately $ 6.1 billion and $ 7.5 billion at December 31, 2019 and 2018, respectively. Estimated gross profits are affected by a number of factors, including levels of current and expected interest rates, net investment income and spreads, net realized capital gains and losses, fees, surrender rates, mortality experience, policyholder behavior experience and equity market returns and volatility. In each reporting period, current period amortization expense is adjusted to reflect actual gross profits. If estimated gross profits change significantly, DAC is recalculated using the new assumptions, and any resulting adjustment is included in income. If the new assumptions indicate that future estimated gross profits are higher than previously estimated, DAC will be increased resulting in a decrease in amortization expense and increase in income in the current period; if future estimated gross profits are lower than previously estimated, DAC will be decreased resulting in an increase in amortization expense and decrease in income in the current period. Updating such assumptions may result in acceleration of amortization in some products and deceleration of amortization in other products. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts. To estimate future estimated gross profits for variable annuity products, a long-term annual asset growth assumption is applied to determine the future growth in assets and related asset-based fees. In determining the asset growth rate, the effect of short-term fluctuations in the equity markets is partially mitigated through the use of a “reversion to the mean” methodology whereby short-term asset growth above or below long-term annual rate assumptions impacts the growth assumption applied to the five-year period subsequent to the current balance sheet date. The reversion to the mean methodology allows us to maintain our long-term growth assumptions, while also giving consideration to the effect of actual investment performance. When actual performance significantly deviates from the annual long-term growth assumption, as evidenced by growth assumptions in the five-year reversion to the mean period falling below a certain rate (floor) or rising above a certain rate (cap) for a sustained period, judgment may be applied to revise or “unlock” the growth rate assumptions to be used for both the five-year reversion to the mean period as well as the long-term annual growth assumption applied to subsequent periods. Shadow DAC and Shadow Loss Recognition: DAC related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity securities available for sale and prior to 2018, equity securities at fair value on estimated gross profits, with related changes recognized through Other comprehensive income (shadow DAC). The adjustment is made at each balance sheet date, as if the securities had been sold at their stated aggregate fair value and the proceeds reinvested at current yields. Similarly, for long-duration traditional insurance contracts, if the assets supporting the liabilities are in a net unrealized gain position at the balance sheet date, loss recognition testing assumptions are updated to exclude such gains from future cash flows by reflecting the impact of reinvestment rates on future yields. If a future loss is anticipated under this basis, any additional shortfall indicated by loss recognition tests is recognized as a reduction in accumulated other comprehensive income (shadow loss recognition). Similar to other loss recognition on long-duration insurance contracts, such shortfall is first reflected as a reduction in DAC and secondly as an increase in liabilities for future policy benefits. The change in these adjustments, net of tax, is included with the change in net unrealized appreciation of investments that is credited or charged directly to Other comprehensive income. Internal Replacements of Long-duration and Investment-oriented Products: For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If the modification does not substantially change the contract, we do not change the accounting and amortization of existing DAC and related actuarial balances. If an internal replacement represents a substantial change, the original contract is considered to be extinguished and any related DAC or other policy balances are charged or credited to income, and any new deferrable costs associated with the replacement contract are deferred. Value of Business Acquired (VOBA) is determined at the time of acquisition and is reported in the Consolidated Balance Sheets with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For participating life, traditional life and accident and health insurance products, VOBA is amortized over the life of the business in a manner similar to that for DAC based on the assumptions at purchase. For investment-oriented products, VOBA is amortized in relation to estimated gross profits and adjusted for the effect of unrealized gains or losses on fixed maturity securities available for sale and prior to 2018, equity securities at fair value in a manner similar to DAC. The following table presents a rollforward of DAC and VOBA: Years Ended December 31, (in millions) 2019 2018 2017 Balance, beginning of year $ 12,694 $ 10,994 $ 11,042 Acquisitions - 298 - Dispositions - - ( 35) Acquisition costs deferred 5,403 5,832 4,820 Amortization expense ( 5,164) ( 5,386) ( 4,288) Change related to unrealized appreciation (depreciation) of investments ( 1,768) 1,063 ( 505) Other, including foreign exchange 42 ( 107) ( 40) Reclassified to Assets held for sale - - - Balance, end of year (a) $ 11,207 $ 12,694 $ 10,994 Supplemental Information: VOBA amortization expense included in DAC amortization $ 171 $ 243 $ 20 VOBA, end of year included in DAC balance (b) 317 438 381 (a) Net of reductions in DAC of $ 1.8 billion, $ 1.0 billion and $ 1.3 billion at December 31, 2019, 2018 and 2017, respectively, related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC). (b) Includes $ 101 million of VOBA from the acquisition of Validus in 2018, the majority of which was amortized in 2019. The percentage of the unamortized balance of VOBA at December 31, 2019 expected to be amortized in 2020 through 2024 by year is: 8.5 percent, 7.6 percent, 7.0 percent, 7.0 percent and 6.6 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, which involves estimating the future profitability of current business. This review involves significant management judgment. If actual 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, 2019 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 11. Variable Interest Entities A variable interest entity (VIE) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on other criteria discussed below. We enter into various arrangements with VIEs in the normal course of business and consolidate the VIEs when we determine we are the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks the entity was designed to expose the variable interest holders to. The primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE. Balance Sheet Classification and Exposure to Loss The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Consolidated Balance Sheets: (in millions) Real Estate and Investment Entities (d) Securitization Vehicles (e) Affordable Housing Partnerships Other Total December 31, 2019 Assets: Bonds available for sale $ 177 $ 7,239 $ - $ - $ 7,416 Other bond securities - 3,324 - 1 3,325 Mortgage and other loans receivable - 3,860 - - 3,860 Other invested assets 5,231 - 3,464 42 8,737 Other (a) 615 1,996 469 42 3,122 Total assets (b) $ 6,023 $ 16,419 $ 3,933 $ 85 $ 26,460 Liabilities: Long-term debt $ 2,810 $ 4,356 $ 2,074 $ 4 $ 9,244 Other (c) 236 359 195 24 814 Total liabilities $ 3,046 $ 4,715 $ 2,269 $ 28 $ 10,058 December 31, 2018 Assets: Bonds available for sale $ - $ 7,662 $ - $ - $ 7,662 Other bond securities - 3,923 - 2 3,925 Mortgage and other loans receivable - 3,693 - - 3,693 Other invested assets 5,212 - 3,142 24 8,378 Other (a) 580 1,581 394 70 2,625 Total assets (b) $ 5,792 $ 16,859 $ 3,536 $ 96 $ 26,283 Liabilities: Long-term debt $ 2,577 $ 3,154 $ 1,834 $ 4 $ 7,569 Other (c) 227 165 159 24 575 Total liabilities $ 2,804 $ 3,319 $ 1,993 $ 28 $ 8,144 (a) Comprised primarily of Short-term investments and Other assets at December 31, 2019 and 2018. (b) The assets of each VIE can be used only to settle specific obligations of that VIE. (c) Comprised primarily of Other liabilities at December 31, 2019 and 2018. (d) At December 31, 2019 and 2018, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $ 2.6 billion and $ 1.4 billion, respectively. (e) At December 31, 2019 and 2018, the company had contributed total assets of $ 15.6 billion and $ 16.0 billion, respectively, into consolidated securitization vehicles. We calculate our maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where we have also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE. Interest holders in VIEs sponsored by us generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to us, except in limited circumstances when we have provided a guarantee to the VIE’s interest holders. The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as well as our maximum exposure to loss associated with these VIEs: Maximum Exposure to Loss Total VIE On-Balance Off-Balance (in millions) Assets Sheet (b) Sheet Total December 31, 2019 Real estate and investment entities (a) $ 283,349 $ 6,519 $ 3,286 $ 9,805 Affordable housing partnerships 3,351 453 - 453 Other 5,320 310 - (c) 310 Total $ 292,020 $ 7,282 $ 3,286 $ 10,568 December 31, 2018 Real estate and investment entities (a) $ 309,598 $ 6,820 $ 2,501 $ 9,321 Affordable housing partnerships 4,116 607 - 607 Other 2,813 284 1,222 (c) 1,506 Total $ 316,527 $ 7,711 $ 3,723 $ 11,434 (a) Comprised primarily of hedge funds and private equity funds. (b) At December 31, 2019 and 2018, $ 7.0 billion and $ 7.4 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (c) 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. Real Estate and Investment Entities Through our insurance operations and AIG Global Real Estate Investment Corp., we are an investor in various real estate investment entities, some of which are VIEs. These investments are typically with unaffiliated third-party developers via a partnership or limited liability company structure. The VIEs’ activities consist of the development or redevelopment of commercial, industrial and residential real estate. Our involvement varies from being a passive equity investor or finance provider to actively managing the activities of the VIEs. Our insurance operations participate as passive investors in the equity issued by certain third-party-managed hedge and private equity funds that are VIEs. Our insurance operations typically are not involved in the design or establishment of these VIEs, nor do they actively participate in the management of the VIEs. Securitization Vehicles We created certain VIEs that hold investments, primarily in investment-grade debt securities and loans, and issued beneficial interests in these investments. The majority of these beneficial interests are owned by our insurance operations and we maintain the power to direct the activities of the VIEs that most significantly impact their economic performance and bear the obligation to absorb losses or receive benefits from the entities that could potentially be significant to the entities. Accordingly, we consolidate these entities and those beneficial interests issued to third-parties are reported as Long-term debt. Affordable Housing Partnerships SunAmerica Affordable Housing Partners, Inc. (SAAHP) organized and invested in limited partnerships that develop 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 general 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 are 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 Life and Retirement segment. RMBS, CMBS, Other ABS and CDOs Primarily through our insurance operations, we are a passive investor in RMBS, CMBS, other ABS and CDOs, the majority of which are issued by domestic special purpose entities. We generally do not sponsor or transfer assets to, or act as the servicer to these asset-backed structures, and were not involved in the design of these entities. Our maximum exposure in these types of structures is limited to our investment in securities issued by these entities. Based on the nature of our investments and our passive involvement in these types of structures, we have determined that we are not the primary beneficiary of these entities. We have not included these entities in the above tables; however, the fair values of our investments in these structures are reported in Notes 6 and 7 herein. |
DERIVATIVES AND HEDGE ACCOUNTIN
DERIVATIVES AND HEDGE ACCOUNTING | 12 Months Ended |
Dec. 31, 2019 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
DERIVATIVES AND HEDGE ACCOUNTING | 12. 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 swaps) are used to economically mitigate risk associated with non-U.S. dollar denominated debt, net capital exposures, foreign currency transactions, and foreign denominated investments. Equity derivatives are used to mitigate financial risk embedded in certain insurance liabilities and economically hedge certain investments. We use credit derivatives to manage our credit exposures. The derivatives are effective economic hedges of the exposures that they are meant to offset. In addition to hedging activities, we also enter into derivative instruments with respect to investment operations, which 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 swaps, 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 Consolidated Balance Sheets only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty. Cash collateral posted with counterparties in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset. Derivatives, with the exception of embedded derivatives, are reported at fair value in the Consolidated Balance Sheets in Other assets and Other liabilities. Embedded derivatives are generally presented with the host contract in the Consolidated Balance 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 for that instrument. For additional information on embedded derivatives see Notes 6 and 15 herein. The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Consolidated Balance Sheets: December 31, 2019 December 31, 2018 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 $ 495 $ 3 $ 410 $ 7 $ 10 $ - $ 866 $ 19 Foreign exchange contracts 4,328 342 5,230 162 6,357 363 2,536 147 Derivatives not designated as hedging instruments: (a) Interest rate contracts 52,437 3,197 35,231 2,742 42,821 2,890 27,329 2,004 Foreign exchange contracts 8,133 698 12,093 863 11,134 801 5,434 711 Equity contracts 18,533 769 7,539 139 17,807 398 2,399 15 Credit contracts (b) 8,457 3 923 89 8 1 1,406 236 Other contracts (c) 40,582 14 56 7 39,070 15 58 6 Total derivatives, gross $ 132,965 $ 5,026 $ 61,482 $ 4,009 $ 117,207 $ 4,468 $ 40,028 $ 3,138 Counterparty netting (d) ( 2,427) ( 2,427) ( 1,713) ( 1,713) Cash collateral (e) ( 1,806) ( 527) ( 1,840) ( 187) Total derivatives on consolidated balance sheets (f) $ 793 $ 1,055 $ 915 $ 1,238 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b) As of December 31, 2019 and 2018, included CDSs on super senior multi-sector CDOs with a net notional amount of $ 152 million and $ 592 million (fair value liability of $ 48 million and $ 224 million), respectively. The net notional amount represents the maximum exposure to loss on the portfolio. (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, 2019 and December 31, 2018. Fair value of liabilities related to bifurcated embedded derivatives was $ 6.9 billion and $ 4.1 billion, respectively, at December 31, 2019 and December 31, 2018. 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 provisions, which provide for collateral postings that may vary at various ratings and threshold levels. We attempt to reduce our risk with certain counterparties by entering into agreements that enable collateral to be obtained from a counterparty on an upfront or contingent basis. We minimize the risk that counterparties 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 the transaction to an obligor with higher debt ratings or arrange for a substitute guarantee of our obligations by an obligor with higher debt ratings or take other similar action. The actual amount of collateral required to be posted to counterparties in the event of such downgrades, or the aggregate amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. Collateral posted by us to third parties for derivative transactions was $ 2.2 billion and $ 1.7 billion at December 31, 2019 and 2018, respectively. In the case of collateral posted under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties. Collateral provided to us from third parties for derivative transactions was $ 2.2 billion and $ 2.1 billion at December 31, 2019 and 2018, 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. Offsetting We have elected to present all derivative receivables and derivative payables, and the related cash collateral received and paid, on a net basis on our Consolidated Balance Sheets when a legally enforceable ISDA Master Agreement exists between us and our derivative counterparty. An ISDA Master Agreement is an agreement 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 derivative 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 affecting all, or a specified group of, derivative transactions governed by the ISDA Master Agreement. Hedge 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 fixed 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, 2019, 2018 and 2017, we recognized gains (losses) of $ 116 million, $ 34 million and $( 106) 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 earnings on our derivative instruments in fair value hedging relationships in the Consolidated Statements of Income: Gains/(Losses) Recognized in Earnings for: Hedging Excluded Hedged (in millions) Derivatives (a) Components (b) Items Net Impact Year ended December 31, 2019 Interest rate contracts : Realized capital gains/(losses) $ - $ - $ - $ - Interest credited to policyholder account balances 16 - ( 16) - Net investment income ( 1) - 1 - Foreign exchange contracts : Realized capital gains/(losses) ( 31) 91 31 91 Other income - - - - Equity contracts : Realized capital gains/(losses) - - - - Year ended December 31, 2018 Interest rate contracts : Realized capital gains/(losses) $ ( 2) $ - $ 2 $ - Interest credited to policyholder account balances - - - - Net investment income - - - - Foreign exchange contracts : Realized capital gains/(losses) 365 106 ( 365) 106 Other income - - - - Equity contracts : Realized capital gains/(losses) - - - - Year ended December 31, 2017 Interest rate contracts : Realized capital gains/(losses) $ ( 4) $ - $ 4 $ - Interest credited to policyholder account balances - - - - Net investment income - - - - Foreign exchange contracts : Realized capital gains/(losses) ( 393) ( 26) 393 ( 26) Other income - - 4 4 Equity contracts : Realized capital gains/(losses) ( 42) ( 5) 42 ( 5) (a) Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness. (b) Gains and losses on derivative instruments designated and qualifying in fair value hedges that are excluded from the assessment of hedge effectiveness and recognized in earnings on a mark-to-market basis. 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: Years Ended December 31, Gains (Losses) Recognized in Earnings (in millions) 2019 2018 2017 By Derivative Type: Interest rate contracts $ 1,319 $ ( 509) $ 56 Foreign exchange contracts ( 25) 543 ( 277) Equity contracts ( 316) ( 56) ( 964) Credit contracts 61 32 58 Other contracts 64 65 75 Embedded derivatives ( 1,464) 629 ( 449) Total $ ( 361) $ 704 $ ( 1,501) By Classification: Policy fees $ 68 $ 67 $ 77 Net investment income ( 125) ( 3) ( 11) Net realized capital gains (losses) ( 316) 561 ( 1,709) Other income - 81 139 Policyholder benefits and claims incurred 12 ( 2) 3 Total $ ( 361) $ 704 $ ( 1,501) Credit Risk-Related Contingent Features We estimate that at December 31, 2019, based on our outstanding financial derivative transactions, a downgrade of our long-term senior debt ratings to 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 counterparties to elect early termination of contracts, resulting in corresponding collateral postings and termination payments in the total amount of up to approximately $ 62 million. The aggregate fair value of our derivatives that were in a net liability position and that contain such credit risk-related contingencies which can be triggered below our long-term senior debt ratings of BBB+ or Baa1 was approximately $ 336 million and $ 423 million at December 31, 2019 and 2018, respectively. The aggregate fair value of assets posted as collateral under these contracts at December 31, 2019 and 2018, was approximately $ 381 million and $ 453 million, respectively. Hybrid Securities with Embedded Credit Derivatives We invest in hybrid securities (such as credit-linked notes) with the intent of generating income, and not specifically to acquire exposure to embedded derivative risk. As is the case with our other investments in RMBS, CMBS, CDOs and ABS, our investments in these hybrid securities are exposed to losses only up to the amount of our initial investment in the hybrid security. Other than our initial investment in the hybrid securities, we have no further obligation to make payments on the embedded credit derivatives in the related hybrid securities. We elect to account for our investments in these hybrid securities with embedded written credit derivatives at fair value, with changes in fair value recognized in Net investment income and Other income. Our investments in these hybrid securities are reported as Other bond securities in the Consolidated Balance Sheets. The fair values of these hybrid securities were $ 3.3 billion and $ 3.9 billion at December 31, 2019 and 2018, respectively. These securities have par amounts of $ 7.4 billion and $ 8.5 billion at December 31, 2019 and 2018, respectively, and have remaining stated maturity dates that extend to 2052. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 13. Goodwill and Other Intangible Assets 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, 2019, the operating segments with goodwill are our General Insurance business – North America and International operating segments, our Life and Retirement business – Life Insurance operating segment and our Other Operations and Legacy Portfolio operating segments. When a business is transferred from one reporting unit to another, as occurred as part of the 2017 segment changes, 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. 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 fair 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 estimated 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 value 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. Effective July 1, 2019, we changed the date of our annual goodwill impairment testing from December 31 to July 1. This change does not represent a material change to our method of applying current accounting guidance and is preferable as it better aligns with our strategic planning and forecasting process. This change did not delay, accelerate or avoid any impairment charge and was applied prospectively. We performed our annual goodwill impairment tests of all reporting units using a combination of both qualitative and quantitative assessments and concluded that our goodwill was not impaired. The following table presents the changes in goodwill by operating segment: General Insurance North Life Other Legacy (in millions) America International Insurance Operations Portfolio Total Balance at January 1, 2017: Goodwill - gross $ 1,878 $ 2,807 $ 77 $ 27 $ 216 $ 5,005 Accumulated impairments ( 1,264) ( 2,136) - - ( 77) ( 3,477) Net goodwill 614 671 77 27 139 1,528 Increase (decrease) due to: Acquisitions - - - 4 - 4 Dispositions ( 10) ( 7) ( 6) - ( 2) ( 25) Other - 74 13 - - 87 Balance at December 31, 2017: Goodwill - gross 1,868 2,874 84 31 214 5,071 Accumulated impairments ( 1,264) ( 2,136) - - ( 77) ( 3,477) Net goodwill 604 738 84 31 137 1,594 Increase (decrease) due to: Acquisitions (a) 2,332 157 46 9 - 2,544 Other ( 12) ( 48) ( 5) 9 - ( 56) Balance at December 31, 2018: Goodwill - gross 4,188 2,983 125 49 214 7,559 Accumulated impairments ( 1,264) ( 2,136) - - ( 77) ( 3,477) Net goodwill 2,924 847 125 49 137 4,082 Increase (decrease) due to: Acquisitions - 20 - - - 20 Other (b) - 26 8 - ( 98) ( 64) Balance at December 31, 2019: Goodwill - gross 4,188 3,029 133 49 116 7,515 Accumulated impairments ( 1,264) ( 2,136) - - ( 77) ( 3,477) Net goodwill $ 2,924 $ 893 $ 133 $ 49 $ 39 $ 4,038 (a) Includes goodwill of $ 2.0 billion, $ 492 million and $ 46 million relating to the acquisitions of Validus, Glatfelter and Ellipse, respectively. (b) Reflects $ 98 million of goodwill that has been reclassified to assets held for sale. Indefinite lived intangible assets are not subject to amortization. Indefinite lived intangible assets primarily include Lloyd’s syndicate capacity and brand names. Finite lived intangible assets are amortized over their useful lives. Finite lived intangible assets primarily include distribution networks and are recorded net of accumulated amortization. The Company tests intangible assets for impairment on an annual basis or whenever events or circumstances suggest that the carrying value of an intangible asset may exceed the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If this condition exists and the carrying value of an intangible asset exceeds its fair value, the excess is recognized as an impairment and is recorded as a charge against net income. The Other intangible assets and VODA resulted primarily from the acquisition of Validus. The following table presents the changes in other intangible assets and the VODA by operating segment: General Insurance North Life Other Legacy (in millions) America International Insurance Operations Portfolio Total Other intangible assets Balance at January 1, 2018 $ 27 $ 8 $ 34 $ 37 $ - $ 106 Increase (decrease) due to: Acquisitions 61 207 16 - - 284 Amortization ( 2) ( 3) ( 4) ( 2) - ( 11) Other - - - ( 19) - ( 19) Balance at December 31, 2018 $ 86 $ 212 $ 46 $ 16 $ - $ 360 Increase (decrease) due to: Acquisitions - - - - - - Amortization ( 1) ( 1) ( 4) ( 2) - ( 8) Other ( 3) - ( 18) 2 - ( 19) Balance at December 31, 2019: $ 82 $ 211 $ 24 $ 16 $ - $ 333 Value of distribution network acquired Balance at January 1, 2018 $ - $ - $ - $ - $ - $ - Increase (decrease) due to: Acquisitions - - - 582 - 582 Amortization - - - ( 15) - ( 15) Other - - - 2 - 2 Balance at December 31, 2018 $ - $ - $ - $ 569 $ - $ 569 Increase (decrease) due to: Acquisitions - - - - - - Amortization - - - ( 39) - ( 39) Other - - - 6 - 6 Balance at December 31, 2019: $ - $ - $ - $ 536 $ - $ 536 The percentage of the unamortized balance of Other intangible assets and VODA at December 31, 2019 expected to be amortized in 2020 through 2024 by year is 7.9 percent, 7.9 percent, 7.9 percent, 7.9 percent and 7.9 percent, respectively, with 60.5 percent being amortized after five years. |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Insurance Liabilites | |
INSURANCE LIABILITIES | 14. Insurance Liabilities Liability for Unpaid Losses and Loss Adjustment Expenses (Loss Reserves) Loss reserves represent the accumulation of estimates of unpaid claims, including estimates for IBNR claims, less applicable discount. We regularly review and update the methods used to determine loss reserve estimates. Any adjustments resulting from this review are reflected currently in pre-tax income. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be recognized and confirmed. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as favorable development. Our gross loss reserves before reinsurance and discount are net of contractual deductible recoverable amounts due from policyholders of approximately $ 12.2 billion and $ 12.3 billion at December 31, 2019 and 2018, 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, 2019 and 2018, we held collateral of approximately $ 8.9 billion and $ 9.2 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) 2019 2018 2017 Liability for unpaid loss and loss adjustment expenses, beginning of year $ 83,639 $ 78,393 $ 77,077 Reinsurance recoverable ( 31,690) ( 26,708) ( 15,532) Net Liability for unpaid loss and loss adjustment expenses, beginning of year 51,949 51,685 61,545 Losses and loss adjustment expenses incurred: Current year 17,596 20,534 21,079 Prior years, excluding discount and amortization of deferred gain ( 340) 1,429 1,565 Prior years, discount charge (benefit) 1,063 ( 252) 187 Prior years, amortization of deferred gain on retroactive reinsurance (a) ( 219) ( 395) ( 284) Total losses and loss adjustment expenses incurred 18,100 21,316 22,547 Losses and loss adjustment expenses paid: Current year ( 4,894) ( 5,754) ( 5,323) Prior years ( 18,020) ( 17,768) ( 16,241) Total losses and loss adjustment expenses paid ( 22,914) ( 23,522) ( 21,564) Other changes: Foreign exchange effect ( 6) ( 677) 788 Acquisitions (b) - 3,284 23 Dispositions (c) - - ( 360) Retroactive reinsurance adjustment (net of discount) (d) 130 ( 137) ( 11,294) Total other changes 124 2,470 ( 10,843) Liability for unpaid loss and loss adjustment expenses, end of year: Net liability for unpaid losses and loss adjustment expenses 47,259 51,949 51,685 Reinsurance recoverable 31,069 31,690 26,708 Total $ 78,328 $ 83,639 $ 78,393 (a) Includes $ 27 million, $ 51 million and $ 25 million for the retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the year ended December 31, 2019, 2018 and 2017, respectively. (b) Includes amounts related to the acquisition of Glatfelter in October 2018, Validus in July 2018 and Blackboard U.S. Holdings Inc. in 2017. (c) Includes amounts related to dispositions through the date of disposition. Includes sale of insurance operations to Fairfax. (d) Includes benefit (charge) from change in discount on retroactive insurance in the amount of $ 469 million, $( 180) million and $( 1.5) billion for the periods ended December 31, 2019, 2018 and 2017, respectively. Prior Year Development During 2019, we recognized favorable prior year loss reserve development of $ 340 million excluding discount and amortization of deferred gain. The development was primarily driven by: Favorable development on U.S. Workers’ Compensation business, both guaranteed cost business and large deductible and Defense Base Act business (covering government contractors serving at military bases overseas) where we reacted to favorable loss trends in recent accident years; Favorable development on 2017 Hurricanes (Harvey, Irma and Maria) and favorable development due to 2017 California Wildfire subrogation recoverables in Commercial Property and Personal Lines. Unfavorable development in Primary General Liability where we reacted to adverse frequency and severity trends especially in Construction Wrap business in recent accident years. Unfavorable development in U.S. Financial Lines, notably Directors and Officers (D&O), Employment Practices Liability (EPLI) and Non-Medical Professional Errors & Omissions business where we reacted to increasing frequency and severity in recent accident years. Unfavorable development on European Casualty & Financial Lines, notably Commercial Auto, Employers Liability, Directors & Officers, and Financial Institutions business; and Favorable development on Europe Property and Special Risks, Europe and Japan Personal Insurance and Other product lines. Our analyses and conclusions about prior year reserves also help inform our judgments about the current accident year loss and loss adjustment expense ratios we selected. During 2018, we recognized adverse prior year loss reserve development of $ 1.4 billion before impact of the Adverse Development Cover and the asbestos cession to NICO. The key components of this development were as follows: Unfavorable development in U.S. Excess Casualty, driven by the combination of construction defect and construction wrap claims from accident year 2015 and prior where we reacted to significant increases in severity and longer claim reporting patterns, as well as higher than expected loss severity in accident years 2016 and 2017, which led to an increase in estimates for these accident years; Unfavorable development in U.S. Financial Lines, primarily from Directors & Officers (D&O) and Employment Practices Liability (EPLI) policies covering Corporate and National Insureds as well as Private and Not-for-Profit insureds. This development was predominantly in accident years 2014-2017 and resulted largely from increases in severity associated with an increase in frequency of class action lawsuits from those years. Favorable development in U.S. Commercial Property and Specialty Lines due to reductions in our estimates for 2017 Catastrophes, favorable attritional losses in Commercial Property and favorable Specialty emergence. Unfavorable development in U.S. Personal Lines reflecting the adverse development on the 2017 California wildfires and Hurricane Irma in 2017. Unfavorable development in International Financial Lines driven by increased large loss activity in recent accident years, particularly related to directors and officers class action suits against insureds with global exposure. Our analyses and conclusions about prior year reserves also help inform our judgments about the current accident year loss and loss adjustment expense ratios we selected. During 2017, we recognized unfavorable prior year loss reserve development of $ 1.6 billion. This unfavorable development was primarily a result of the following: Unfavorable development in U.S. Casualty lines, driven primarily by increases in underlying severity and greater than expected emerging loss experience in accident year 2016 as well as increased development from claims related to construction defects and construction wrap business (largely from accident years 2006 and prior). Unfavorable development in U.S. Financial Lines, primarily from D&O policies covering privately owned and not-for-profit insureds. This development was predominantly in accident year 2016 and resulted largely from increases in bankruptcy-related claims and fiduciary liability claims for large educational institutions. Higher than expected losses for UK/Europe Casualty and Financial Lines. We observed a significant increase in large claims activity in our UK/Europe long-tail business, with a large proportion emanating from accident year 2016. In addition, we increased our loss reserves as a result of the decision made by the U.K. Ministry of Justice to reduce the discount rate applied to lump-sum bodily injury payouts, known as the Ogden rate. In addition we also observed higher than expected losses in UK/Europe property and special risks business driven by unexpected development on various large claims across the property, aviation, marine, and trade credit segments. The table below presents the reconciliation of the net liability for unpaid losses and loss adjustment expenses in the following tables to Loss Reserves in the Consolidated Balance Sheets for the year ended December 31, 2019: 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) U.S. Workers' Compensation (before discount) $ 5,213 $ 6,745 $ 11,958 U.S. Excess Casualty 4,285 5,073 9,358 U.S. Other Casualty 4,064 4,695 8,759 U.S. Financial Lines 5,154 2,221 7,375 U.S. Property and Special risks 4,950 2,807 7,757 U.S. Personal Insurance 1,287 988 2,275 UK/Europe Casualty and Financial lines 6,234 1,268 7,502 UK/Europe Property and Special risks 2,573 1,191 3,764 UK/Europe and Japan Personal Insurance 1,962 519 2,481 U.S. Run-Off Long Tail Insurance Lines (before discount) 4,435 3,587 8,022 Total $ 40,157 $ 29,094 $ 69,251 Reconciling Items Discount on workers' compensation lines ( 2,800) Other product lines 8,679 Unallocated loss adjustment expenses 3,198 Total Loss Reserves $ 78,328 Loss Development Information The following is information about incurred and paid loss developments as of December 31, 2019, 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 method: 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 in 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 case 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 Ratio 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 the weight 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. Cape Cod method: The Cape Cod method is mechanically similar to the Bornhuetter-Ferguson method with the difference being that the Expected Loss Ratio estimates are determined based on a weighting of the loss estimates that come from the Paid/Incurred Development Methods. This method may be more responsive to recent loss trends than the Bornhuetter-Ferguson method. Average Loss method: The Average Loss method multiplies a projected number of ultimate claims by an estimated ultimate severity average 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, observed 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, and 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 volatility 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 medical services) and wage inflation trends; underlying policy pricing, terms and conditions including attachment points and policy limits; change in claims handling philosophy, operating model, processes, and related ongoing enhancements; third-party claims reviews that are periodically performed for key classes of 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. We note that for certain categories of claims (e.g., construction defect claims and environmental claims) and for reinsurance recoverable, losses may sometimes be reclassified to an earlier or later accident year as more information about the date of occurrence becomes available to us. These reclassifications are shown as development in the respective years in the tables below. Financial Lines business is primarily written on a claims-made basis, while the majority of the workers’ compensation, excess casualty, other casualty, and run-off property and casualty lines of business are 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 generally be subject to similar trends and reflect our reportable segments. The incurred losses and loss adjustment expenses and paid losses in the following tables for the current reporting year are allocated to the line of business and accident years based on how the business is coded by profit center and line of business. Reinsurance: Our reinsurance program varies by exposure type. Historically we have leveraged facultative and treaty reinsurance, both on a pro-rata and excess of loss basis. Our reinsurance program may change from year to year, which may affect the comparability of the data presented in our tables. Adverse Development Reinsurance Agreement: We have provided the impact of the adverse development reinsurance agreement (ADC) in an additional table below our Incurred Losses and Allocated Loss Adjustment Expenses (ALAE) tables. The impact of the ADC is shown beginning in 2016 given the retroactive date of the contract and coincides with the effective date of the contract. For the lines of business covered by the agreement (U.S. Workers' Compensation, U.S. Excess Casualty, U.S. Other Casualty, U.S. Financial Lines, U.S. Property and Special Risks and U.S. Personal Insurance or collectively, the "Covered Lines"), an attribution of the loss recoveries to the line of business by calendar year and accident year is performed based on the underlying distribution of the losses subject to the agreement. Specifically, the future claim payments for all subject incurred losses were projected into future years based on the same actuarial assumptions underlying the related reserves. T he additional table presented after discussion of prior year development by line of business reconciles the changes in net ultimates to our overall prior year development and provides the reattribution of loss recoveries for the Covered Lines. The reinsurance terms of the ADC were then used to identify the future claims payments for which 80% will be reimbursed by NICO. At each reporting period, the attribution of the ADC recoveries is performed. The factors that could cause the attribution to lines of business and accident year to change include changes in underlying actuarial assumptions as to timing and amount of future claim payments. Incurred but not 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 expenses 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, 2019. Although this approach requires restating all prior accident year information, the changes in exchange rates do not impact incurred and paid loss development trends. Acquisitions: We include acquisitions from all accident years presented in the tables. For purposes of this disclosure, we have applied the retrospective method for the acquired reserves, including incurred and paid claim development histories throughout the relevant tables. It should be noted that historical reserves for the acquired businesses were established by the acquired companies using methods, assumptions and procedures then in effect which may differ from our current reserving bases. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on the aggregated historical results shown in the triangles. Dispositions: We exclude dispositions from all accident years presented in the tables. 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 percent 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 frequency 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 occurrences 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. Supplemental Information: The information about incurred and paid loss development for all periods preceding year ended December 31, 2019 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, with a separate presentation of the Adverse Development Reinsurance Agreement excluding the related amortization of the deferred gain: U.S. Workers' Compensation During 2019, we recognized $ 699 million of favorable prior year development, net of external reinsurance but before ADC cessions. During 2018, we recognized $ 51 million of unfavorable prior year development, net of external reinsurance but before ADC cessions. Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2019 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2010 $ 2,706 $ 3,049 $ 3,125 $ 3,148 $ 3,211 $ 3,214 $ 3,286 $ 3,267 $ 3,278 $ 3,238 $ ( 40) $ 334 133,623 $ ( 437) $ ( 276) $ 2,801 $ 58 2011 2,901 2,953 3,091 3,158 3,113 3,152 3,156 3,177 3,141 ( 36) 414 125,122 ( 458) ( 311) 2,683 103 2012 2,382 2,194 2,286 2,260 2,334 2,308 2,259 2,247 ( 12) 380 71,128 ( 443) ( 307) 1,804 73 2013 1,932 1,880 1,950 2,060 2,032 1,974 1,916 ( 58) 353 47,066 ( 458) ( 311) 1,458 42 2014 1,729 1,764 1,866 1,862 1,794 1,709 ( 85) 397 40,075 ( 380) ( 238) 1,329 159 2015 1,708 1,864 1,866 1,814 1,722 ( 92) 558 35,838 ( 588) ( 442) 1,134 116 2016 1,299 1,346 1,318 1,140 ( 178) 403 30,588 - - 1,140 403 2017 789 850 776 ( 74) 352 26,538 - - 776 352 2018 998 1,021 23 641 21,034 - - 1,021 641 2019 887 639 13,919 - - 887 639 Total $ 17,797 $ ( 552) $ ( 2,764) $ $ 15,033 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 11,354) - - ( 11,354) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2010, net of reinsurance 4,505 ( 210) ( 2,971) 1,534 Unallocated loss adjustment expense prior year development 63 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 10,948 $ ( 699) $ ( 5,735) $ $ 5,213 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Change in Incurred Loss and ALAE Accident Year 2016 2017 2018 2019 Unaudited 2010 $ 2,822 $ 2,818 $ 2,811 $ 2,801 $ ( 10) 2011 2,676 2,677 2,682 2,683 1 2012 1,819 1,814 1,793 1,804 11 2013 1,500 1,494 1,481 1,458 ( 23) 2014 1,311 1,310 1,309 1,329 20 2015 1,279 1,279 1,318 1,134 ( 184) 2016 1,299 1,346 1,318 1,140 ( 178) 2017 - 789 850 776 ( 74) 2018 - - 998 1,021 23 2019 - - - 887 - Total $ 12,706 $ 13,527 $ 14,560 $ 15,033 $ ( 414) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below - - ( 11,354) - Liabilities for losses and allocated loss adjustment expenses before 2010, net of reinsurance - 1,588 1,534 ( 54) Unallocated loss adjustment expense prior year development - - - 276 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ $ 5,213 $ ( 192) The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Change in Incurred Loss and ALAE Accident Year 2016 2017 2018 2019 Unaudited 2010 $ ( 464) $ ( 449) $ ( 467) $ ( 437) $ 30 2011 ( 476) ( 479) ( 495) ( 458) 37 2012 ( 515) ( 494) ( 466) ( 443) 23 2013 ( 560) ( 538) ( 493) ( 458) 35 2014 ( 555) ( 552) ( 485) ( 380) 105 2015 ( 585) ( 587) ( 496) ( 588) ( 92) 2016 - - - - - 2017 - - - - - 2018 - - - - - 2019 - - - - - Total $ ( 3,155) $ ( 3,099) $ ( 2,902) $ ( 2,764) $ 138 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below - - - Liabilities for losses and allocated loss adjustment expenses before 2010, net of reinsurance - ( 3,127) ( 2,971) 156 Unallocated loss adjustment expense prior year development 213 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance ( 6,029) $ ( 5,735) $ 507 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2010 $ 550 $ 1,093 $ 1,537 $ 1,855 $ 2,126 $ 2,288 $ 2,426 $ 2,532 $ 2,597 $ 2,647 $ - 2011 519 1,129 1,561 1,884 2,129 2,285 2,388 2,451 2,496 - 2012 415 804 1,089 1,272 1,440 1,563 1,632 1,669 - 2013 282 619 879 1,067 1,214 1,287 1,335 - 2014 231 558 786 930 1,030 1,096 - 2015 234 524 725 854 925 - 2016 147 378 521 584 - 2017 93 224 294 - 2018 85 215 - 2019 93 - Total $ 11,354 $ - 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, frequency/severity and expected loss ratio methods for workers’ compensation. Many 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 differences 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). The proportion of large deductible business has increased over time, which has slowed the reporting pattern of claims. For guaranteed cost business, expected loss ratio methods generally are given significant weight only in the most recent accident year. Workers’ compensation 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 volume 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 development 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 2016 analysis, we increased our tail factor estimates for states other than NY and CA for guaranteed cost business in recognition of longer medical development patterns that we have been seeing in recent years. We 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 which 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 these accounts. Prior Year Development During 2019, we recognized $ 699 million of favorable prior year development in U.S. Workers Compensation business due to favorable frequency and severity trends seen across the diagonals across many subsets of U.S. Workers Compensation especially in the recent accident years. During 2018, we recognized $ 51 million of adverse prior year development in U.S. Workers Compensation business with higher claim development factors at older ages (tail factors) for non-California, non-New York and loss sensitive business in older accident years being offset by favorable emergence in recent years. Accident year 2017 was adversely impacted by a change in ceded reinsurance estimates. For our Defense Base Act (DBA) business, adverse development in recent years was offset by an expansion of the definition of reimbursable War Hazard claims by the U.S. Government. During 2017, we recognized $ 31 million of favorable prior year development in U.S. workers’ compensation business, particularly guaranteed cost business in the states of California and New York. Actual loss emergence during the year, particularly for guaranteed cost business in these two states, was significantly less than expected on a reported loss basis. We did recognize some offsetting unfavorable development in our DBA business that covers government contractors in U.S. and non-U.S. military installations, as well as from a Pennsylvania Supreme Court decision that overturned a ruling that provided limitations on payments for certain permanent injuries (the Protz decision). U.S. Excess Casualty During 2019, we recognized $ 76 million of unfavorable prior year development in Excess Casualty, net of external reinsurance but before ADC cessions, driven by higher than expected loss emergence for construction wrap claims and increasing loss severity in more recent accident years. During 2018, we recognized $ 1,274 million of unfavorable prior year development in Excess Casualty, net of external reinsurance but before ADC cessions, driven by higher than expected loss emergence for construction defect and construction wrap claims and increasing loss severity in more recent accident years. Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2019 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreem |
VARIABLE LIFE AND ANNUITY CONTR
VARIABLE LIFE AND ANNUITY CONTRACTS | 12 Months Ended |
Dec. 31, 2019 | |
VARIABLE LIFE AND ANNUITY CONTRACTS | |
VARIABLE LIFE AND ANNUITY CONTRACTS | 15. 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 (GMDB) or guaranteed minimum withdrawal benefits (GMWB) 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 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 primarily include 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 (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) 2019 2018 Equity funds $ 51,383 $ 43,059 Bond funds 7,881 7,231 Balanced funds 26,659 24,100 Money market funds 765 787 Total $ 86,688 $ 75,177 GMDB 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. GMDB is our most widely offered benefit. The liability for GMDB, which is recorded in Future policy benefits, represents 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, 2019 2018 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 $ 98 $ 16 $ 89 $ 15 Net amount at risk 1 - 1 1 Average attained age of contract holders by product 65 71 63 68 Range of guaranteed minimum return rates 0.00%- 4.50% 0.00%- 4.50% The following summarizes GMDB liability related to variable annuity contracts, excluding assumed reinsurance: Years Ended December 31, (in millions) 2019 2018 2017 Balance, beginning of year $ 397 $ 352 $ 402 Reserve increase (decrease) 35 93 ( 14) Benefits paid ( 40) ( 43) ( 42) Changes in reserves related to unrealized appreciation of investments 15 ( 5) 6 Balance, end of year $ 407 $ 397 $ 352 Assumptions used to determine the GMDB 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; investment returns, based on stochastically generated scenarios; and asset growth assumptions, which include a reversion to the mean methodology, similar to that applied for 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 earlier assumptions should be revised. GMWB Certain of our variable annuity contracts contain optional GMWB benefits and, to a lesser extent, guaranteed minimum accumulation benefits, which are not currently offered. With a GMWB, the contract holder can monetize the excess of the guaranteed amount over the account value of the contract only through a series of withdrawals that do not exceed a specific percentage per year of the guaranteed amount. If, after the series of withdrawals, the account value is exhausted, the contract holder will receive a series of annuity payments equal to the remaining guaranteed amount, and, for lifetime GMWB products, the annuity payments continue as long as the covered person(s) is living. The 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 $ 2.5 billion and $ 1.9 billion at December 31, 2019 and 2018, respectively. For a discussion of the fair value measurement of guaranteed benefits that are accounted for as embedded derivatives see Note 6 herein. We had account values subject to GMWB that totaled $ 45 billion and $ 41 billion at December 31, 2019 and 2018, respectively. The net amount at risk for GMWB represents the present value of minimum guaranteed withdrawal payments, in accordance with contract terms, in excess of account value, assuming no lapses. The net amount at risk related to the GMWB guarantees was $ 328 million and $ 215 million at December 31, 2019 and 2018, respectively. We use derivative instruments and other financial instruments to mitigate a portion of our exposure that arises from GMWB benefits. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
DEBT | |
DEBT | 16. 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 following table lists our total debt outstanding at December 31, 2019 and 2018. The interest rates presented in the following table are the range of contractual rates in effect at December 31, 2019, including fixed and variable-rates: Balance at Balance at At December 31, 2019 Range of Maturity December 31, December 31, (in millions) Interest Rate(s) Date(s) 2019 2018 Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable 0% - 8.13% 2020 - 2097 $ 20,467 $ 20,853 Junior subordinated debt 4.88% - 8.63% 2037 - 2058 1,542 1,548 AIG Japan Holdings Kabushiki Kaisha 0.28% - 0.44% 2020 - 2021 344 331 AIGLH notes and bonds payable 6.63% - 7.50% 2025 - 2029 282 282 AIGLH junior subordinated debt 7.57% - 8.50% 2030 - 2046 361 361 Validus notes and bonds payable 8.88% 2040 353 359 Total AIG general borrowings 23,349 23,734 AIG borrowings supported by assets: (a) Series AIGFP matched notes and bonds payable 1.89% - 1.92% 2046 - 2047 21 21 GIAs, at fair value 1.79% - 7.62% 2020 - 2047 2,003 2,164 Notes and bonds payable, at fair value 0.50% - 10.37% 2030 - 2040 59 49 Total AIG borrowings supported by assets 2,083 2,234 Total debt issued or guaranteed by AIG 25,432 25,968 Other subsidiaries' notes, bonds, loans and mortgages payable - not guaranteed by AIG 2.76% - 3.86% 2020 - 2028 47 168 Total long-term debt 25,479 26,136 Debt of consolidated investment entities - not guaranteed by AIG (b) 0% - 9.31% 2020 - 2062 9,871 8,404 Total debt $ 35,350 $ 34,540 (a) AIG Parent guarantees all such debt, except for Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. Collateral posted to third parties was $ billion at both December 31, 2019 and December 31, 2018. This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties. (b) At December 31, 2019, includes debt of consolidated investment entities related to real estate investments of $ 3.2 billion, affordable housing partnership investments of $ 2.1 billion and other securitization vehicles of $ 4.6 billion. At December 31, 2018, includes debt of consolidated investment entities related to real estate investments of $ 3.7 billion, affordable housing partnership investments of $ 1.8 billion and other securitization vehicles of $ 2.9 billion. The following table presents maturities of long-term debt (including unamortized original issue discount, hedge accounting valuation adjustments and fair value adjustments, when applicable): December 31, 2019 Year Ending (in millions) Total 2020 2021 2022 2023 2024 Thereafter Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable $ 20,467 $ 1,346 $ 1,498 $ 1,511 $ 1,610 $ 998 $ 13,504 Junior subordinated debt 1,542 - - - - - 1,542 AIG Japan Holdings Kabushiki Kaisha 344 119 225 - - - - AIGLH notes and bonds payable 282 - - - - - 282 AIGLH junior subordinated debt 361 - - - - - 361 Validus notes and bonds payable 353 - - - - - 353 Total AIG general borrowings 23,349 1,465 1,723 1,511 1,610 998 16,042 AIG borrowings supported by assets: Series AIGFP matched notes and bonds payable 21 - - - - - 21 GIAs, at fair value 2,003 34 151 50 121 139 1,508 Notes and bonds payable, at fair value 59 - - - - - 59 Total AIG borrowings supported by assets 2,083 34 151 50 121 139 1,588 Total debt issued or guaranteed by AIG 25,432 1,499 1,874 1,561 1,731 1,137 17,630 Debt not guaranteed by AIG: Other subsidiaries' notes, bonds, loans and mortgages payable 47 37 2 1 1 1 5 Total debt not guaranteed by AIG 47 37 2 1 1 1 5 Total $ 25,479 $ 1,536 $ 1,876 $ 1,562 $ 1,732 $ 1,138 $ 17,635 Uncollateralized and collateralized notes, bonds, loans and mortgages payable consisted of the following: Uncollateralized Collateralized At December 31, 2019 Notes/Bonds/Loans Loans and (in millions) Payable Mortgages Payable Total AIG general borrowings $ 344 $ - $ 344 Other subsidiaries' notes, bonds, loans and mortgages payable * 1 46 47 Total $ 345 $ 46 $ 391 * AIG does not guarantee any of these borrowings. AIGLH Junior Subordinated Debentures In connection with our acquisition of AIG Life Holdings, Inc. (AIGLH) in 2001, we entered into arrangements with AIGLH with respect to outstanding AIGLH capital securities. In 1996, AIGLH issued capital securities through a trust to institutional investors and funded the trust with AIGLH junior subordinated debentures issued to the trust with the same terms as the capital securities. On July 11, 2013, the AIGLH junior subordinated debentures were distributed to holders of the capital securities, the capital securities were cancelled and the trusts were dissolved. At December 31, 2019, the junior subordinated debentures outstanding consisted of $ 113 million of 8.5 percent 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 junior 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 June 2022. At December 31, 2019 Available Effective (in millions) Size Amount Expiration Date Syndicated Credit Facility $ 4,500 $ 4,500 June 2022 6/27/2017 |
CONTINGENCIES, COMMITMENTS AND
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 12 Months Ended |
Dec. 31, 2019 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 17. Contingencies, Commitments and Guarantees In the normal course of business, various contingent liabilities and commitments are entered into by AIG and our subsidiaries. In addition, AIG Parent guarantees various obligations of certain subsidiaries. Although AIG cannot currently quantify its ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on AIG’s consolidated financial condition or its consolidated results of operations or consolidated cash flows for an individual reporting period. Legal Contingencies Overview. In the normal course of business, AIG and our subsidiaries are subject to regulatory and government investigations and actions, and litigation and other forms of dispute resolution in a large number of proceedings pending in various domestic and foreign jurisdictions. Certain of these matters involve potentially significant risk of loss due to potential for significant jury awards and settlements, punitive damages or other penalties. Many of these matters are also highly complex and may seek recovery on behalf of a class or similarly large number of plaintiffs. It is therefore inherently difficult to predict the size or scope of potential future losses arising from these matters. In our insurance and reinsurance operations, litigation and arbitration concerning the scope of coverage under insurance and reinsurance contracts, and litigation and arbitration in which our subsidiaries defend or indemnify their insureds under insurance contracts, are generally considered in the establishment of our loss reserves. Separate and apart from the foregoing matters involving insurance and reinsurance coverage, AIG, our subsidiaries and their respective officers and directors are subject to a variety of additional types of legal proceedings brought by holders of AIG securities, customers, employees and others, alleging, among other things, breach of contractual or fiduciary duties, bad faith, indemnification and violations of federal and state statutes and regulations. With respect to these other categories of matters not arising out of claims for insurance or reinsurance coverage, we establish reserves for loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In many instances, we are unable to determine whether a loss is probable or to reasonably estimate the amount of such a loss and, therefore, the potential future losses arising from legal proceedings may exceed the amount of liabilities that we have recorded in our financial statements covering these matters. While such potential future charges could be material, based on information currently known to management, management does not believe, other than as may be discussed below, that any such charges are likely to have a material adverse effect on our financial position or results of operation. Additionally, from time to time, various regulatory and governmental agencies review the transactions and practices of AIG and our subsidiaries in connection with industry-wide and other inquiries into, among other matters, the business practices of current and former operating insurance subsidiaries. Such investigations, inquiries or examinations could develop into administrative, civil or criminal proceedings or enforcement actions, in which remedies could include fines, penalties, restitution or alterations in our business practices, and could result in additional expenses, limitations on certain business activities and reputational damage. For example, among other matters, we are currently responding to governmental investigations and examinations pertaining to certain sales and compensation practices and payments and related disclosures in connection with financial planning services and the sale and distribution of related products, including 403(b) and similar retirement plans, by the Individual and Group Retirement business segments. We have cooperated, and will continue to cooperate, in producing documents and other information with respect to these matters. Tax Litigation We are party to pending tax litigation before the Southern District of New York . For additional information see Note 23 to the Consolidated Financial Statements. lease Commitments We lease office space and equipment in various locations across jurisdictions in which the Company operates. The majority of the resulting obligation arising from these contracts is generated by our real estate portfolio, which only includes contracts classified as operating leases. As of December 31, 2019, the lease liability and corresponding right of use asset reflected in Other Liabilities and Other Assets were $ 733 million and $ 648 million, respectively, and we made cash payments of $ 248 million in 2019 in connection with these leases. The liability includes non-lease components, such as property taxes and insurance for our gross leases. Some of these leases contain options to renew after a specified period of time at the prevailing market rate; however, renewal options that have not been exercised as of December 31, 2019 are excluded until management attains a reasonable level of certainty. Some leases also include termination options at specified times and term; however, termination options are not reflected in the lease asset and liability balances until they have been exercised. The weighted average discount rate and lease term assumptions used in determining the liability are 3.21 percent and 4.9 years, respectively. The primary assumption used to determine the discount rate is the cost of funding for the Company, which is based on the secured borrowing rate for terms similar to the lease term, and for the major financial markets in which AIG operates. Rent expense was $ 232 million, $ 283 million and $ 269 million for the years ended December 31, 2019, 2018 and 2017, respectively. The following table presents the future undiscounted cash flows under operating leases at December 31, 2019; the primary difference between our undiscounted cash flows and the recognized lease liability is interest expense: (in millions) 2020 $ 250 2021 186 2022 108 2023 84 2024 64 Remaining years after 2024 165 Total $ 857 During 2019, we recognized a pretax net gain of $ 200 million from the sale and concurrent leaseback of our corporate headquarters. The company also procured additional office space via operating lease contracts for which lease commencement will occur in 2020. Future undiscounted obligations stemming from those contracts total $ 507 million, which excludes the effect of renewal options. 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 $ 7.4 billion at December 31, 2019. 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 Markets, Inc. (AIG Markets) 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, 2019 was $ 81 million. 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 payments to be made by AIGFP. In the event that AIGFP is required to make a payment to the equity investor, the lessee is unconditionally obligated to reimburse AIGFP. To the extent that the equity investor is paid the equity termination value from the standby letter of credit and/or other sources, including payments by the lessee, AIGFP takes an assignment of the equity investor’s rights under the lease of the underlying property. Because the obligations of the lessee under the lease transactions are generally economically defeased, lessee bankruptcy is the most likely circumstance in which AIGFP would be required to pay without reimbursement. AIG Parent 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 (IRS). AIG Parent and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated federal income taxes. Under an Amended and Restated Tax Payment Allocation Agreement dated June 6, 2011 between AIG Parent and one of its Bermuda-domiciled insurance subsidiaries, AIG Life of Bermuda, Ltd. (AIGB), AIG Parent has agreed to indemnify AIGB for any tax liability (including interest and penalties) resulting from adjustments made by the IRS or other appropriate authorities to taxable income, special deductions or credits in connection with investments made by AIGB in certain affiliated entities. 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 some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or are not applicable. We are unable to develop a reasonable estimate of the maximum potential 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 Balance Sheets. Other For additional discussion on commitments and guarantees associated with VIEs see Note 11 herein. For additional disclosures about derivatives see Note 12 herein. For additional disclosures about guarantees of outstanding debt of Validus and AIGLH see Note 25 herein. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
EQUITY | |
EQUITY | 18. Equity Shares Outstanding Preferred Stock On March 14, 2019, we issued 20,000 shares of Series A 5.85% Non-Cumulative Perpetual Preferred Stock (Series A Preferred Stock) (equivalent to 20,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of Series A Preferred Stock), $ 5.00 par value and $ 25,000 liquidation preference per share (equivalent to $ 25 per Depositary Share). After underwriting discounts and expenses, we received net proceeds of approximately $ 485 million. We may redeem the Series A Preferred Stock at our option, (a) in whole, but not in part, at any time prior to March 15, 2024, within 90 days after the occurrence of a “Rating Agency Event,” at a redemption price equal to $ 25,500 per share of the Series A Preferred Stock (equivalent to $ 25.50 per Depositary Share), plus an amount equal to any dividends per share that have been declared but not paid prior to the redemption date (but no amount due in respect of any dividends that have not been declared prior to such date), or (b) (i) in whole, but not in part, at any time prior to March 15, 2024, within 90 days after the occurrence of a “Regulatory Capital Event,” or (ii) in whole or in part, from time to time, on or after March 15, 2024, in each case, at a redemption price equal to $ 25,000 per share of the Series A Preferred Stock (equivalent to $ 25.00 per Depositary Share), plus an amount equal to any dividends per share that have been declared but not paid prior to the redemption date (but no amount due in respect of any dividends that have not been declared prior to such date). A “Rating Agency Event” is generally defined to mean that any nationally recognized statistical rating organization within the meaning of Section 3(a)(62) of the Exchange Act that then publishes a rating for us amends, clarifies or changes the criteria it uses to assign equity credit to securities such as the Series A Preferred Stock, which amendment, clarification or change results in the shortening of the length of time the Series A Preferred Stock is assigned a particular level of equity credit by that rating agency as compared to the length of time it would have been assigned that level of equity credit by that rating agency or its predecessor on the initial issuance of the Series A Preferred Stock, or the lowering of the equity credit (including up to a lesser amount) assigned to the Series A Preferred Stock by that rating agency as compared to the equity credit assigned by that rating agency or its predecessor on the initial issuance of the Series A Preferred Stock. A “Regulatory Capital Event” is generally defined to mean our good faith determination that as a result of a change in law, rule or regulation, or a proposed change or an official judicial or administrative pronouncement, there is more than an insubstantial risk that the full liquidation preference of the Series A Preferred Stock would not qualify as capital (or a substantially similar concept) for purposes of any group capital standard to which we are or will be subject. Holders of the Series A Preferred Stock will be entitled to receive dividend payments only when, as and if declared by our board of directors (or a duly authorized committee of the board). Dividends will be payable from the original date of issue at a rate of 5.85% per annum, payable quarterly, in arrears, on the fifteenth day of March, June, September and December of each year, beginning on June 15, 2019. Dividends on the Series A Preferred Stock will be non-cumulative. On May 21, 2019, our Board of Directors declared a cash dividend of $ 369.6875 per share on AIG’s Series A Preferred Stock. Holders of Depositary Shares each representing a 1/1,000th interest in a share of Series A Preferred Stock received $ 0.3696875 per Depositary Share. The dividend was paid on June 17, 2019 to holders of record at the close of business on May 31, 2019. On August 7, 2019, our Board of Directors declared a cash dividend of $ 365.625 per share on AIG’s Series A Preferred Stock. Holders of Depositary Shares each representing a 1/1,000th interest in a share of Series A Preferred Stock received $ 0.365625 per Depositary Share. The dividend was paid on September 16, 2019 to holders of record at the close of business on August 30, 2019. On October 31, 2019, our Board of Directors declared a cash dividend of $ 365.625 per share on AIG’s Series A Preferred Stock. Holders of Depositary Shares each representing a 1/1,000th interest in a share of Series A Preferred Stock received $ 0.365625 per Depositary Share. The dividend was paid on December 16, 2019 to holders of record at the close of business on November 29, 2019. In the event of any liquidation, dissolution or winding-up of the affairs of AIG, whether voluntary or involuntary, before any distribution or payment out of our assets may be made to or set aside for the holders of any junior stock, holders of the Series A Preferred Stock will be entitled to receive out of our assets legally available for distribution to our stockholders, an amount equal to $ 25,000 per share of Series A Preferred Stock (equivalent to $ 25.00 per Depositary Share), together with an amount equal to all declared and unpaid dividends (if any), but no amount in respect of any undeclared dividends prior to such payment date. Distributions will be made only to the extent of our assets that are available for distribution to stockholders (i.e., after satisfaction of all our liabilities to creditors, if any). The Series A Preferred Stock does not have voting rights, except in limited circumstances, including in the case of certain dividend non-payments. Common Stock The following table presents a rollforward of outstanding shares: Common Treasury Common Stock Stock Issued Stock Outstanding Year Ended December 31, 2017 Shares, beginning of year 1,906,671,492 ( 911,335,651) 995,335,841 Shares issued - 3,386,462 3,386,462 Shares repurchased - ( 99,677,646) ( 99,677,646) Shares, end of year 1,906,671,492 ( 1,007,626,835) 899,044,657 Year Ended December 31, 2018 Shares, beginning of year 1,906,671,492 ( 1,007,626,835) 899,044,657 Shares issued - 4,091,922 4,091,922 Shares repurchased - ( 36,527,150) ( 36,527,150) Shares, end of year 1,906,671,492 ( 1,040,062,063) 866,609,429 Year Ended December 31, 2019 Shares, beginning of year 1,906,671,492 ( 1,040,062,063) 866,609,429 Shares issued - 3,389,602 3,389,602 Shares repurchased - - - Shares, end of year 1,906,671,492 ( 1,036,672,461) 869,999,031 Dividends 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 on 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 standards for capital and capital distributions, and such other factors as our Board of Directors may deem relevant. The payment of dividends is also subject to the terms of AIG’s outstanding Series A Preferred Stock, pursuant to which no dividends may be declared or paid on any AIG Common Stock unless the full dividends for the latest completed dividend period on all outstanding shares of Series A Preferred Stock have been declared and paid or provided for. The following table presents declaration date, record date, payment date and dividends paid per common share on AIG Common Stock: Dividends Paid Declaration Date Record Date Payment Date Per Common Share October 31, 2019 December 12, 2019 December 26, 2019 $ 0.32 August 7, 2019 September 17, 2019 September 30, 2019 0.32 May 6, 2019 June 14, 2019 June 28, 2019 0.32 February 13, 2019 March 15, 2019 March 29, 2019 0.32 October 31, 2018 December 12, 2018 December 26, 2018 0.32 August 2, 2018 September 17, 2018 September 28, 2018 0.32 May 2, 2018 June 14, 2018 June 28, 2018 0.32 February 8, 2018 March 15, 2018 March 29, 2018 0.32 November 2, 2017 December 8, 2017 December 22, 2017 0.32 August 2, 2017 September 15, 2017 September 29, 2017 0.32 May 3, 2017 June 14, 2017 June 28, 2017 0.32 February 14, 2017 March 15, 2017 March 29, 2017 0.32 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) 2019 2018 2017 Aggregate repurchases of common stock $ - $ 1,739 $ 6,275 Total number of common shares repurchased - 37 100 Aggregate repurchases of warrants $ - $ 11 $ 3 Total number of warrants repurchased * - 1 - * In 2019, we did not repurchase any warrants to purchase shares of AIG Common Stock. In 2017, we repurchased 185,000 warrants to purchase shares of AIG Common Stock. Our Board of Directors has authorized the repurchase of shares of AIG Common Stock and warrants to purchase shares of AIG Common Stock through a series of actions. On February 13, 2019, our Board of Directors authorized an additional increase of approximately $ 1.5 billion to its previous share repurchase authorization. As of December 31, 2019, approximately $ 2.0 billion remained under our share repurchase authorization. Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, 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. We did not repurchase any shares of AIG Common Stock during 2019. The timing of any future repurchases will depend on market conditions, our business and strategic plans, financial condition, results of operations, liquidity and other factors. The repurchase of AIG Common Stock is also subject to the terms of AIG’s outstanding Series A Preferred Stock, pursuant to which AIG may not (other than in limited circumstances) purchase, redeem or otherwise acquire AIG Common Stock unless the full dividends for the latest completed dividend period on all outstanding shares of Series A Preferred Stock have been declared and paid or provided for. Accumulated Other Comprehensive Income (Loss) The following table presents a rollforward of Accumulated other comprehensive income (loss): Unrealized Appreciation Fair Value of (Depreciation) of Fixed Unrealized Liabilities Under Maturity Securities on Appreciation Foreign Retirement Fair Value Option Which Other-Than- (Depreciation) Currency Plan Attributable to Temporary Credit of All Other Translation Liabilities Changes in (in millions) Impairments Were Taken Investments Adjustments Adjustment Own Credit Risk Total Balance, January 1, 2017, net of tax $ 426 $ 6,405 $ ( 2,629) $ ( 972) $ - $ 3,230 Change in unrealized appreciation of investments 394 3,668 - - - 4,062 Change in deferred policy acquisition costs adjustment and other * 23 ( 1,282) - - - ( 1,259) Change in future policy benefits - ( 1,102) - - - ( 1,102) Change in foreign currency translation adjustments - - 547 - - 547 Change in net actuarial loss - - - 110 - 110 Change in prior service cost - - - 9 - 9 Change in deferred tax asset (liability) ( 50) 4 ( 8) ( 78) - ( 132) Total other comprehensive income 367 1,288 539 41 - 2,235 Noncontrolling interests - - - - - - Balance, December 31, 2017, net of tax $ 793 $ 7,693 $ ( 2,090) $ ( 931) $ - $ 5,465 Cumulative effect of change in accounting principles 169 ( 285) ( 284) ( 183) 7 ( 576) Change in unrealized depreciation of investments ( 1,320) ( 8,688) - - - ( 10,008) Change in deferred policy acquisition costs adjustment and other ( 57) 1,300 - - - 1,243 Change in future policy benefits - 1,711 - - - 1,711 Change in foreign currency translation adjustments - - ( 314) - - ( 314) Change in net actuarial loss - - - ( 23) - ( 23) Change in prior service credit - - - ( 4) - ( 4) Change in deferred tax asset (liability) 377 702 ( 35) 55 - 1,099 Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - 3 3 Total other comprehensive income (loss) ( 1,000) ( 4,975) ( 349) 28 3 ( 6,293) Noncontrolling interests - 7 2 - - 9 Balance, December 31, 2018, net of tax $ ( 38) $ 2,426 $ ( 2,725) $ ( 1,086) $ 10 $ ( 1,413) Change in unrealized appreciation of investments 842 13,333 - - - 14,175 Change in deferred policy acquisition costs adjustment and other * 15 ( 1,871) - - - ( 1,856) Change in future policy benefits - ( 4,462) - - - ( 4,462) Change in foreign currency translation adjustments - - 135 - - 135 Change in net actuarial loss - - - ( 58) - ( 58) Change in prior service credit - - - ( 2) - ( 2) Change in deferred tax asset (liability) ( 196) ( 1,311) ( 31) 24 - ( 1,514) Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - ( 3) ( 3) Total other comprehensive income (loss) 661 5,689 104 ( 36) ( 3) 6,415 Noncontrolling interests - 16 4 - - 20 Balance, December 31, 2019, net of tax $ 623 $ 8,099 $ ( 2,625) $ ( 1,122) $ 7 $ 4,982 * Includes net unrealized gains and losses attributable to businesses held for sale at December 31, 2019 and December 31, 2017. The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2019, 2018 and 2017: Unrealized Appreciation Fair Value of (Depreciation) of Fixed Unrealized Liabilities Under Maturity Securities on Appreciation Foreign Retirement Fair Value Option Which Other-Than- (Depreciation) Currency Plan Attributable to Temporary Credit of All Other Translation Liabilities Changes in (in millions) Impairments Were Taken Investments Adjustments Adjustment Own Credit Risk Total December 31, 2017 Unrealized change arising during period $ 467 $ 2,052 $ 547 $ 24 $ - $ 3,090 Less: Reclassification adjustments included in net income 50 768 - ( 95) - 723 Total other comprehensive income, before income tax expense (benefit) 417 1,284 547 119 - 2,367 Less: Income tax expense (benefit) 50 ( 4) 8 78 - 132 Total other comprehensive income, net of income tax expense (benefit) $ 367 $ 1,288 $ 539 $ 41 $ - $ 2,235 December 31, 2018 Unrealized change arising during period $ ( 1,372) ( 5,811) ( 314) ( 61) 3 $ ( 7,555) Less: Reclassification adjustments included in net income 5 ( 134) - ( 34) - ( 163) Total other comprehensive income (loss), before income tax expense (benefit) ( 1,377) ( 5,677) ( 314) ( 27) 3 ( 7,392) Less: Income tax expense (benefit) ( 377) ( 702) 35 ( 55) - ( 1,099) Total other comprehensive income (loss), net of income tax expense (benefit) $ ( 1,000) $ ( 4,975) $ ( 349) $ 28 $ 3 $ ( 6,293) December 31, 2019 Unrealized change arising during period $ 853 $ 7,324 $ 135 $ ( 97) $ ( 3) $ 8,212 Less: Reclassification adjustments included in net income ( 4) 324 - ( 37) - 283 Total other comprehensive income (loss), before income tax expense (benefit) 857 7,000 135 ( 60) ( 3) 7,929 Less: Income tax expense (benefit) 196 1,311 31 ( 24) - 1,514 Total other comprehensive income (loss), net of income tax expense (benefit) $ 661 $ 5,689 $ 104 $ ( 36) $ ( 3) $ 6,415 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) 2019 2018 2017 Consolidated Statements of Income Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken Investments $ ( 4) $ 5 $ 50 Other realized capital gains Total ( 4) 5 50 Unrealized appreciation (depreciation) of all other investments Investments 324 ( 134) 463 Other realized capital gains Deferred acquisition costs adjustment - - 305 Amortization of deferred policy acquisition costs Future policy benefits - - - Policyholder benefits and losses incurred Total 324 ( 134) 768 Change in retirement plan liabilities adjustment Prior-service credit - 1 5 * Actuarial losses ( 37) ( 35) ( 100) * Total ( 37) ( 34) ( 95) Total reclassifications for the year $ 283 $ ( 163) $ 723 * These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. For additional information see Note 22 herein. |
EARNINGS PER COMMON SHARE (EPS)
EARNINGS PER COMMON SHARE (EPS) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE (EPS) | |
EARNINGS PER SHARE (EPS) | 19. Earnings Per Common Share (EPS) The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The diluted EPS computation is based on those shares used in the basic EPS computation plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits. The following table presents the computation of basic and diluted EPS: Years Ended December 31, (dollars in millions, except per common share data) 2019 2018 2017 Numerator for EPS: Income (loss) from continuing operations $ 4,121 $ 103 $ ( 6,060) Less: Net income from continuing operations attributable to noncontrolling interests 821 67 28 Less: Preferred stock dividends 22 - - Income (loss) attributable to AIG common shareholders from continuing operations 3,278 36 ( 6,088) Income (loss) from discontinued operations, net of income tax expense 48 ( 42) 4 Net income (loss) attributable to AIG common shareholders $ 3,326 $ ( 6) $ ( 6,084) Denominator for EPS: Weighted average common shares outstanding — basic 876,750,264 898,405,537 930,561,286 Dilutive common shares 12,761,682 11,735,705 - Weighted average common shares outstanding — diluted (a)(b) 889,511,946 910,141,242 930,561,286 Income (loss) per common share attributable to AIG common shareholders: Basic: Income (loss) from continuing operations $ 3.74 $ 0.04 $ ( 6.54) Income (loss) from discontinued operations $ 0.05 $ ( 0.05) $ - Income (loss) attributable to AIG common shareholders $ 3.79 $ ( 0.01) $ ( 6.54) Diluted: Income (loss) from continuing operations $ 3.69 $ 0.04 $ ( 6.54) Income (loss) from discontinued operations $ 0.05 $ ( 0.05) $ - Income (loss) attributable to AIG common shareholders $ 3.74 $ ( 0.01) $ ( 6.54) (a) Shares in the diluted EPS calculation represent basic shares for 2017 due to the net loss in that period. The number of common shares excluded from the calculation was 22,412,682 shares. (b) Dilutive shares included our share-based employee compensation plans and a weighted average portion of the 10-year warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011. The number of shares excluded from diluted shares outstanding were 20.0 million, 19.6 million and 1.7 million for the years ended December 31, 2019, 2018 and 2017, respectively, because the effect of including those shares in the calculation would have been anti-dilutive. |
STATUTORY FINANCIAL DATA AND RE
STATUTORY FINANCIAL DATA AND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2019 | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | 20. Statutory Financial Data and Restrictions The following table presents statutory net income (loss) and capital and surplus for our General Insurance companies and our Life and Retirement companies in accordance with statutory accounting practices: (in millions) 2019 2018 2017 Years Ended December 31, Statutory net income (loss) (a)(b) General Insurance companies: Domestic $ 1,482 $ ( 1,030) $ ( 978) Foreign 1,382 558 ( 318) Total General Insurance companies $ 2,864 $ ( 472) $ ( 1,296) Life and Retirement companies: Domestic $ 310 $ 671 $ 1,066 Foreign 3,356 ( 553) 21 Total Life and Retirement companies $ 3,666 $ 118 $ 1,087 At December 31, Statutory capital and surplus (a)(b) General Insurance companies: Domestic $ 17,433 $ 17,435 Foreign 16,230 15,709 Total General Insurance companies $ 33,663 $ 33,144 Life and Retirement companies: Domestic $ 9,227 $ 9,454 Foreign 5,264 1,809 Total Life and Retirement companies $ 14,491 $ 11,263 Aggregate minimum required statutory capital and surplus: General Insurance companies: Domestic $ 4,178 $ 4,393 Foreign 8,645 8,456 Total General Insurance companies $ 12,823 $ 12,849 Life and Retirement companies: Domestic $ 3,383 $ 3,301 Foreign 1,229 1,159 Total Life and Retirement companies $ 4,612 $ 4,460 (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) The 2019 amounts reflect our best estimate of the statutory net income, capital and surplus as of the date of AIG’s Form 10-K filing. In aggregate, the 2018 General Insurance companies and Life and Retirement companies statutory net income increased by $ 1.1 billion and the 2018 General Insurance companies and Life and Retirement companies statutory capital and surplus decreased by $ 1.4 billion, compared to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2018, due to finalization of statutory filings and revision of prior period number presented herein. Our insurance subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by domestic and foreign insurance regulatory authorities. The principal differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP for domestic companies are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, investment impairments are determined in accordance with statutory accounting practices, assets and liabilities are presented net of reinsurance, policyholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. For domestic insurance subsidiaries, aggregate minimum required statutory capital and surplus is based on the greater of the RBC level that would trigger regulatory action or minimum requirements per state insurance regulation. Capital and surplus requirements of our foreign subsidiaries differ from those prescribed in the U.S., and can vary significantly by jurisdiction. At both December 31, 2019 and 2018, all domestic and foreign insurance subsidiaries individually exceeded the minimum required statutory capital and surplus requirements and all domestic insurance subsidiaries individually exceeded RBC minimum required levels. At December 31, 2019 and 2018, 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 would 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 2015, a domestic life insurance subsidiary domiciled in Texas adopted a permitted statutory accounting practice to report derivatives used to hedge interest rate risk on product-related embedded derivatives at amortized cost instead of fair value. In 2018, the permitted practice was expanded to include additional derivative instruments utilized for the same purpose and to also include an additional domestic life insurance subsidiary domiciled in Texas. This permitted practice resulted in an increase in the statutory surplus of our subsidiaries of $ 438 million at December 31, 2018. This permitted practice expired for periods after September 30, 2019 and was not renewed. Effective December 31, 2019 and subsequent reporting periods through September 30, 2020, a domestic life insurance subsidiary domiciled in Texas adopted a permitted statutory accounting practice to recognize an admitted asset related to the notional value of coverage defined in an excess of loss (XoL) reinsurance agreement, net of specified amounts. This reinsurance agreement has a 20 year term and provides coverage to the subsidiary for aggregate claims incurred during the agreement term associated with guaranteed minimum withdrawal benefits on certain fixed index annuities exceeding an attachment point defined in the treaty. The permitted practice allows the subsidiary to manage its reserves in a manner more in line with anticipated principle-based reserving requirements once they have been developed. This permitted practice resulted in an increase in the statutory surplus of this subsidiary of approximately $ 285 million at December 31, 2019. The subsidiary may seek continuation of the permitted practice beyond September 30, 2020, subject to the approval of its domiciliary regulator. As described in Note 14, 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. 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, 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 transactions. The affiliated life insurers providing reinsurance capacity for such transactions are fully licensed insurance companies and are not formed under captive insurance laws. Under the other intercompany reinsurance arrangement, certain Regulation XXX and Guideline AXXX reserves related to a closed block of in-force business are ceded to an affiliated off-shore life insurer, which is licensed as a class E insurer under Bermuda law. This reinsurance arrangement does not meet the criteria for reinsurance accounting under U.S. GAAP; therefore, deposit accounting is applied by the assuming off-shore life insurer. Letters of credit are used to support the credit for reinsurance provided by the affiliated off-shore life insurer. For additional information regarding these letters of credit see Note 9 herein. Subsidiary Dividend Restrictions Payments of dividends to us by our insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities. With respect to our domestic insurance subsidiaries, the payment of any dividend requires formal notice to the insurance department in which the particular insurance subsidiary is domiciled. For example, unless permitted by the Superintendent of Financial Services, property casualty companies domiciled in New York generally may not pay dividends to shareholders that, in any 12-month period, exceed the lesser of 10 percent of such company’s statutory policyholders’ surplus or 100 percent of its “adjusted net investment income,” for the previous year, as defined. Generally, less severe restrictions applicable to both property casualty and life insurance companies exist in most of the other states in which our insurance subsidiaries are domiciled. Under the laws of many states, an insurer may pay a dividend without prior approval of the insurance regulator when the amount of the dividend is below certain regulatory thresholds. Other foreign jurisdictions may restrict the ability of our foreign insurance subsidiaries to pay dividends. Various other regulatory restrictions also limit cash loans and advances to us by our subsidiaries. Largely as a result of these restrictions, approximately $ 44.1 billion of the statutory capital and surplus of our consolidated insurance subsidiaries were restricted from transfer to AIG Parent without prior approval of state insurance regulators at December 31, 2019. To our knowledge, no AIG insurance company is currently on any regulatory or similar “watch list” with regard to solvency. Parent Company Dividend Restrictions At December 31, 2019, our ability to pay dividends is not subject to any significant contractual restrictions, but remains subject to regulatory restrictions. For additional information about our ability to pay dividends to our shareholders see Note 18 herein. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION PLANS | |
SHARE-BASED COMPENSATION PLANS | 21. Share-Based Compensation Plans The following table presents our total share-based compensation expense: Years Ended December 31, (in millions) 2019 2018 2017 Share-based compensation expense - pre-tax (a) $ 314 $ 337 $ 353 Share-based compensation expense - after tax (b) 248 266 229 (a) As a result of accelerated vesting events, such as retirement eligibility in the year of grant and involuntary terminations, we recognized $ 82 million, $ 104 million and $ 196 million in 2019, 2018 and 2017, respectively, prior to the end of the specified vesting periods. It is our policy to reverse compensation expense for forfeited awards when they occur. (b) We also recognized $ 27 million of additional tax expense due to share settlements occurring in 2019. Employee Plans The Company sponsors several stock compensation programs under the AIG Long Term Incentive Plan and its predecessor plan, the AIG 2013 Long Term Incentive Plan (each as applicable, the LTIP), which are governed by the AIG 2013 Omnibus Incentive Plan (Omnibus Plan). Our share-settled awards are settled with previously acquired shares held in AIG’s treasury. AIG 2013 Omnibus Incentive Plan The Omnibus Plan, which replaced the AIG 2010 Stock Incentive Plan (2010 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 Omnibus 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 Omnibus Plan became effective, plus 3) the number of shares of AIG Common Stock relating to outstanding awards under the 2010 Plan at the time the Omnibus Plan became effective that subsequently are forfeited, expired, terminated or otherwise lapse or are settled in cash. Each share-based unit granted under the Omnibus 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 awards) are returned to the reserve. During 2019, performance share units (PSUs), restricted stock units (RSUs), stock options and deferred stock units (DSUs) (collectively, units) were granted under the Omnibus Plan and 31,537,171 shares are available for future grants as of December 31, 2019. Units are issued to employees as part of our long-term incentive program, generally in March of any given year, and are also issued for off-cycle grants, which are made from time to time during the year generally as sign-on awards to new hires or as a result of a change in employee status. AIG Long Term Incentive Plan Long-Term Incentive Awards The LTIP provides for an annual award to certain employees, including our senior executive officers and other highly compensated employees that may be comprised of PSUs, RSUs and/or stock options. The number of PSUs issued on the grant date (the target) provides the opportunity for the LTIP participant to receive shares of AIG Common Stock based on AIG achieving specified performance goals at the end of a three-year zero to 200 percent of the target for the 2019, 2018 and 2017 awards, depending on AIG’s performance relative to a specified peer group or against pre-established financial goals, as applicable. RSUs and stock options are earned based solely on continued service by the participant. Vesting occurs on January 1 of the year immediately following the end of the three-year three equal installments beginning on January 1 of the year immediately following the end of a performance period and January 1 of each of the next two years. 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. LTI awards accrue dividend equivalent units (DEUs) in the form of additional PSUs and/or RSUs 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 unit. Unit Valuation The fair value of time-vesting RSUs as well as PSUs that are earned based on certain company-specific metrics was based on the closing price of AIG Common Stock on the grant date; while the fair value of PSUs that are earned based on AIG’s relative total shareholder return (TSR) was determined on the grant date using a Monte Carlo simulation. The following table presents the assumptions used to estimate the fair value of PSUs that vest based on AIG’s TSR: 2017 Expected dividend yield (a) 2.37 % Expected volatility (b) 17.58 % Risk-free interest rate (c) 2.00 % (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 historical volatility of the stock price for the 360 most recent trading days prior to the valuation date estimated by Bloomberg Professional service . (c) The risk-free interest rate is the continuously compounded interest rate for the term between the valuation date and the end of the performance period that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the valuation date. Modification of LTI awards During the fourth quarter of 2017, the Company modified the LTI awards by issuing time-vesting RSUs and canceling some performance based units. The modification applied to most recipients who participate in the 2015, 2016 and 2017 LTI awards, excluding the Company’s senior executives. The newly granted RSUs vest in installments over a period of up to three years. We incurred incremental compensation expense of $ 142 million as a result of these actions. We recognized $ 71 million in 2017, $ 48 million in 2018, $ 12 million in 2019 and the remainder will be recognized through December 2020. During the third quarter of 2019, we added a modifier to the 2019 performance share units awarded to certain senior executives to cap payout at 100 percent of target if our total shareholder return for the three-year performance period is below peer median. We did not recognize any incremental compensation expense as a result of this modification. The following table summarizes outstanding share-settled LTI awards (a) Weighted Average As of or for the Year Number of Units Grant-Date Fair Value Ended December 31, 2019 (b) 2019 LTI 2018 LTI 2017 LTI 2016 LTI 2015 LTI 2019 LTI 2018 LTI 2017 LTI 2016 LTI 2015 LTI Unvested, beginning of year - 3,322,028 1,579,995 640,660 272,332 $ - $ 55.32 $ 62.32 $ 61.55 $ 60.51 Granted 6,185,729 5,499 - - - 44.81 47.57 - - - Vested (c) ( 1,445,746) ( 529,576) ( 540,580) 456,396 ( 250,708) 44.39 55.72 64.22 53.85 60.51 Forfeited (d) ( 216,085) ( 140,957) ( 1,039,415) ( 873,692) ( 21,624) 44.28 55.47 64.97 50.88 60.40 Unvested, end of year (e) 4,523,898 2,656,994 - 223,364 - $ 44.98 $ 55.21 $ - $ 62.14 $ - (a) Excludes stock options, other RSUs and DSUs, which are discussed under Stock Options, Other RSU Grants and Non-Employee Plan, respectively. (b) Except for the 2015 LTI, 2016 LTI and 2017 LTI awards, PSUs represent target amount 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 by the CMRC in the quarter after the applicable performance period ends. (c) Also reflects units that vest as a result of an accelerated vesting event that occurred prior to the specified vesting date. (d) Includes PSUs for which the performance metric was not met at the end of the performance period. (e) At December 31, 2019, the total unrecognized compensation cost for outstanding RSUs and PSUs was $ 203 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 0.96 year and 2 years. Stock Options Stock options were issued in 2019 and 2018 as part of the 2019 and 2018 LTI awards, and in 2017 and 2018 to certain newly hired senior executives. Option awards are generally granted with an exercise price equal to the market price of the company’s stock on the grant date. The fair value of the options was estimated on the grant date using the Black-Scholes model for the time-vesting options, and a Monte Carlo simulation for the hurdle-vesting options using the assumptions noted in the following table. The following weighted-average assumptions were used for stock options granted: 2019 2018 2017 Expected annual dividend yield (a) 2.86 % 2.32 % 2.03 % Expected volatility (b) 23.17 % 23.29 % 20.96 % Risk-free interest rate (c) 2.47 % 2.83 % 1.94 % Expected term (d) 6.38 years 4.50 - 6.47 years 4.5 years (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 volatility of 24 months stock option estimated by the Bloomberg Professional service as of the valuation date. (c) The risk-free interest rate is the continuously compounded interest rate for the term between the valuation date and the expiration date that is assumed to be constant and equal to the interpolated value between the closet data points on the U.S. dollar LIBOR-swap curve as of the valuation date. (d) The contractual terms are 7 and 10 years from the date of grant. The following table provides a rollforward of stock option activity: Weighted Average Aggregate As of or for the Year Weighted Average Remaining Intrinsic Values Ended December 31, 2019 Units Exercise Price Contractual Life (in millions) Outstanding, beginning of year 5,205,799 $ 58.99 7.38 Granted 3,235,290 44.89 Exercised ( 36,194) 47.61 Forfeited or expired ( 39,004) 44.28 Outstanding, end of year 8,365,891 $ 53.66 7.65 $ 22 Exercisable, end of year 1,330,226 $ 57.28 3.53 $ 1 The weighted average grant-date fair value of stock options granted during 2019, 2018 and 2017 was $ 10.01, $ 11.08 and $ 10.54, respectively. As of December 31, 2019, we recognized $ 28.1 million of expense, while $ 22 million was unrecognized and is expected to be amortized up to 2.00 years. Other RSU Grants The Company may issue time-vesting RSUs for various reasons including, as a sign-on bonus, retention grant or replacement award in an acquisition. Vesting for these awards generally ranges from 1 to 3 years and is contingent on continuous service. The following table summarizes outstanding share-settled RSU grants. Weighted Average As of or for the Year Number of Units Grant-Date Fair Value Ended December 31, 2019 2018 2017 2019 2018 2017 Unvested, beginning of year 1,634,610 595,250 - $ 56.11 $ 62.93 $ - Granted 399,779 1,385,929 869,241 52.40 54.07 63.02 Vested ( 774,350) ( 342,481) ( 273,991) 57.32 59.68 63.21 Forfeited ( 28,854) ( 4,088) - 55.23 60.31 - Unvested, end of year 1,231,185 1,634,610 595,250 $ 54.17 $ 56.11 $ 62.93 We recognized $ 41.6 million of expense related to these RSU grants in 2019. Total unrecognized compensation cost related to these grants was $ 35 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 0.88 years and 3.25 years at December 31, 2019. Non-Employee Plan Our non-employee directors, who serve on our Board of Directors, receive share-based compensation in the form of fully vested DSUs with delivery deferred until retirement from the Board. DSUs granted in 2019, 2018 and 2017 accrue DEUs equal to the amount of any regular quarterly dividend that would have been paid by AIG if the shares of AIG Common Stock underlying the DSUs had been outstanding. In 2019, 2018 and 2017, we granted to non-employee directors 49,706, 39,092 and 32,067 DSUs, respectively, under the 2013 Plan, and recognized expense of $ 2.6 million, $ 2.1 million and $ 2.0 million, respectively. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 22. Employee Benefits Pension Plans We offer various defined benefit plans to eligible employees. 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. The U.S. AIG Retirement Plan (the qualified plan) is a noncontributory defined benefit plan subject to the provisions of ERISA. In 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. Although benefits are frozen, these interest credits continue to accrue on the cash balance accounts of active participants, who also accrue years of service for purposes of early retirement eligibility and subsidies. Employees can take their vested benefits when they leave AIG as a lump sum or an annuity option. 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. 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. 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. 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. Postretirement Plans 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, which was reduced to 5 years in 2019 for medical coverage only. Eligible employees who have medical coverage can enroll in retiree medical upon termination of employment. Medical benefits are contributory, while the life insurance benefits, which are closed to new employees, are generally non-contributory. Retiree medical contributions vary from none for pre-1989 retirees to actual premium payments reduced by certain subsidies for post-1992 retirees. These retiree contributions are subject to annual adjustments. Other cost sharing features of the medical plan include deductibles, coinsurance, Medicare coordination, and an employer subsidy for grandfathered employees only. Postretirement benefits are offered in certain non-U.S. countries and vary by geographic location. 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 (a)(b) Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (in millions) 2019 2018 2019 2018 2019 2018 2019 2018 Change in projected benefit obligation: Benefit obligation, beginning of year $ 4,553 $ 5,091 $ 1,138 $ 1,202 $ 172 $ 190 $ 50 $ 63 Service cost 5 5 21 22 1 1 1 1 Interest cost 176 162 15 16 6 6 2 2 Actuarial (gain) loss 536 ( 383) 91 ( 28) 15 ( 10) 8 ( 14) Benefits paid: AIG assets ( 18) ( 16) ( 8) ( 9) ( 13) ( 15) ( 1) ( 1) Plan assets ( 279) ( 306) ( 33) ( 32) - - - - Plan amendment - - - 3 - - - - Curtailments - - ( 2) - - - - - Settlements - - ( 67) ( 5) - - - - Foreign exchange effect - - 18 ( 31) - - 1 ( 1) Other ( 1) - 1 - - - - - Projected benefit obligation, end of year $ 4,972 $ 4,553 $ 1,174 $ 1,138 $ 181 $ 172 $ 61 $ 50 Change in plan assets: Fair value of plan assets, beginning of year $ 3,840 $ 4,350 $ 861 $ 875 $ - $ - $ - $ - Actual return on plan assets, net of expenses 744 ( 204) 64 6 - - - - AIG contributions 178 16 63 51 13 15 1 1 Benefits paid: AIG assets ( 18) ( 16) ( 8) ( 9) ( 13) ( 15) ( 1) ( 1) Plan assets ( 279) ( 306) ( 33) ( 32) - - - - Settlements - - ( 67) ( 5) - - - - Foreign exchange effect - - 19 ( 25) - - - - Other - - - - - - - - Fair value of plan assets, end of year $ 4,465 $ 3,840 $ 899 $ 861 $ - $ - $ - $ - Funded status, end of year $ ( 507) $ ( 713) $ ( 275) $ ( 277) $ ( 181) $ ( 172) $ ( 61) $ ( 50) Amounts recognized in the balance sheet: Assets $ - $ - $ 65 $ 72 $ - $ - $ - $ - Liabilities ( 507) ( 713) ( 340) ( 349) ( 181) ( 172) ( 61) ( 50) Total amounts recognized $ ( 507) $ ( 713) $ ( 275) $ ( 277) $ ( 181) $ ( 172) $ ( 61) $ ( 50) Pre-tax amounts recognized in Accumulated other comprehensive income (loss): Net gain (loss) $ ( 1,436) $ ( 1,450) $ ( 195) $ ( 149) $ 10 $ 26 $ ( 6) $ 3 Prior service (cost) credit - - ( 22) ( 23) - - 1 3 Total amounts recognized $ ( 1,436) $ ( 1,450) $ ( 217) $ ( 172) $ 10 $ 26 $ ( 5) $ 6 (a) Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $ 261 million and $ 250 million for the U.S. at December 31, 2019 and 2018, respectively, and $ 225 million and $ 201 million for the non-U.S. at December 31, 2019 and 2018, respectively. (b) The significant decrease in actuarial gains and losses from the prior year is primarily due to a 106 bps decrease in the discount rate in 2019 for the qualified plan. The following table presents the accumulated benefit obligations for U.S. and non-U.S. pension benefit plans: At December 31, (in millions) 2019 2018 U.S. pension benefit plans $ 4,972 $ 4,553 Non-U.S. pension benefit plans $ 1,159 $ 1,125 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) 2019 2018 2019 2018 2019 2018 2019 2018 Projected benefit obligation $ 4,972 $ 4,553 $ 1,005 $ 994 - - - - Accumulated benefit obligation - - - - $ 4,972 $ 4,553 $ 931 $ 932 Fair value of plan assets 4,465 3,840 605 594 4,465 3,840 605 594 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) 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Components of net periodic benefit cost: Service cost * $ 5 $ 5 $ 11 $ 21 $ 22 $ 29 $ 1 $ 1 $ 2 $ 1 $ 1 $ 3 Interest cost 176 162 166 15 16 16 6 6 6 2 2 3 Expected return on assets ( 229) ( 283) ( 266) ( 21) ( 25) ( 24) - - - - - - Amortization of prior service cost (credit) - - - 2 2 - - ( 1) ( 1) ( 2) ( 2) ( 1) Amortization of net (gain) loss 35 28 26 5 7 12 ( 1) - ( 1) - 1 1 Net periodic benefit cost (credit) ( 13) ( 88) ( 63) 22 22 33 6 6 6 1 2 6 Curtailment gain - - - - - ( 6) - - - - - ( 2) Settlement (credit) charges - - 60 ( 2) - 1 - - - - - - Net benefit cost (credit) $ ( 13) $ ( 88) $ ( 3) $ 20 $ 22 $ 28 $ 6 $ 6 $ 6 $ 1 $ 2 $ 4 Total recognized in Accumulated other comprehensive income (loss) $ 14 $ ( 77) $ 32 $ ( 45) $ 20 $ 87 $ ( 17) $ 9 $ ( 2) $ ( 10) $ 12 $ 9 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 27 $ 11 $ 35 $ ( 65) $ ( 2) $ 59 $ ( 23) $ 3 $ ( 8) $ ( 11) $ 10 $ 5 * Reflects administrative fees for the U.S. pension plans. Interest cost for pension and postretirement benefits for our U.S. plans and largest non-U.S. plans is measured by applying the specific 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 cash flows to the corresponding spot rates on the yield curve . For certain non-U.S. plans, i nterest cost is 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 expected long-term rate of return would decrease the 2020 pension expense by approximately $ 51 million with all other items remaining the same. A 100 basis point increase in the discount rate would increase the 2020 pension expense by approximately $ 8 million. This is because the increase in the interest cost due to the higher discount rate is larger than the decrease in the amortization of the net loss. Conversely, a 100 basis point decrease in the discount rate or expected long-term rate of return would increase the 2020 pension expense by approximately $ 19 million and $ 51 million, respectively, with all other items remaining the same. Assumptions The following table summarizes the weighted average assumptions used to determine the benefit obligations: Pension Postretirement U.S. Plans Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (a) December 31, 2019 Discount rate 3.16 % 1.09 % 3.14 % 3.18 % Interest crediting rate 2.19 % 0.44 % (b) N/A N/A Rate of compensation increase N/A (c) 2.22 % N/A 3.00 % December 31, 2018 Discount rate 4.22 % 1.71 % 4.17 % 4.12 % Interest crediting rate 3.34 % 0.74 % (b) N/A N/A Rate of compensation increase N/A (c) 2.27 % N/A 3.00 % (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) Represents the weighted average interest crediting rate of non-U.S. cash balance plans primarily in Japan and Switzerland. (c) Compensation increases are no longer applicable as the plan is frozen effective January 1, 2016. The following table summarizes assumed health care cost trend rates for the U.S. plans: At December 31, 2019 2018 Following year: Medical (before age 65) 5.74% 5.93% Medical (age 65 and older) 5.00% 5.00% 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 2038 Medical (age 65 and older) 2038 2038 The following table presents the weighted average assumptions used to determine the net periodic benefit costs: Pension Postretirement U.S. Plans Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (a) For the Year Ended December 31, 2019 Discount rate 4.22 % 1.71 % 4.17 % 4.12 % Interest crediting rate 3.34 % 0.74 % (b) N/A N/A Rate of compensation increase N/A 2.27 % N/A 3.00 % Expected return on assets 6.20 % 2.51 % N/A N/A For the Year Ended December 31, 2018 Discount rate 3.61 % 1.60 % 3.53 % 3.59 % Interest crediting rate 2.88 % 0.70 % (b) N/A N/A Rate of compensation increase N/A 2.27 % N/A 3.00 % Expected return on assets 6.75 % 2.78 % N/A N/A For the Year Ended December 31, 2017 Discount rate 4.15 % 1.50 % 4.01 % 3.95 % Interest crediting rate 2.50 % 0.69 % (b) N/A N/A Rate of compensation increase N/A 2.50 % N/A 3.38 % Expected return on assets 7.00 % 2.92 % N/A N/A (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) Represents the weighted average interest crediting rate of non-U.S. cash balance plans primarily in Japan and Switzerland. 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 U.S. Pension Discount Yield Curve at December 31, 2019 and 2018, which resulted in a single discount rate that would produce the same liability at the respective measurement dates. The discount rates were 3.16 percent at December 31, 2019 and 4.22 percent at December 31, 2018. The methodology was consistently applied for the respective years in determining the discount rates for the other U.S. pension plans. In general, the discount rates for the non-U.S. plans were developed using a similar methodology to the U.S. AIG Retirement plan, by using country-specific Mercer Yield Curves. The projected benefit obligation for AIG’s Japan pension plans represents approximately 53 percent and 52 percent of the total projected benefit obligations for our non-U.S. pension plans at December 31, 2019 and 2018, respectively. The weighted average discount rate of 0.42 percent and 0.72 percent at December 31, 2019 and 2018, respectively, was selected by reference to the Mercer Yield Curve for Japan. 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 profile 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, 2019 or 2018. U.S. Pension Plan The assets of the qualified plan are monitored by the AIG U.S. Investment Committee and actively managed by the investment managers, which involves allocating the plan’s assets among approved asset classes within ranges as permitted by the strategic allocation. The long-term strategic asset allocation historically has been reviewed and revised approximately every three years. The investment strategy is focused on de-risking the Plan via regular monitoring through liability driven investing and 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 funded ratio and level of interest rates. 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 path. The following table presents the asset allocation percentage by major asset class for the U.S. qualified plan and the target allocation for 2020 based on the plan’s funded status at December 31, 2019: Target Actual Actual At December 31, 2020 2019 2018 Asset class: Equity securities 26 % 25 % 25 % Fixed maturity securities 60 % 59 % 47 % Other investments 14 % 16 % 28 % Total 100 % 100 % 100 % The expected weighted average long-term rate of return for the plan was 6.20 percent and 6.75 percent for 2019 and 2018, respectively. The expected weighted average 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 conditions, asset volatility and the expectations for future market returns. Non-U.S. Pension Plans The assets of the non-U.S. pension plans are held in various trusts in multiple countries and are invested primarily in equities and fixed maturity securities to maximize the long-term return on assets for a given level of risk. The following table presents the asset allocation percentage by major asset class for non-U.S. pension plans and the target allocation: Target Actual Actual At December 31, 2020 2019 2018 Asset class: Equity securities 29 % 23 % 35 % Fixed maturity securities 51 % 43 % 37 % Other investments 19 % 24 % 17 % Cash and cash equivalents 1 % 10 % 11 % Total 100 % 100 % 100 % The assets of AIG’s Japan pension plans represent approximately 61 percent and 59 percent of total non-U.S. assets at December 31, 2019 and 2018, respectively. The expected long term rate of return was 1.82 percent and 2.22 percent, for 2019 and 2018, respectively, and is evaluated by the Japanese Pension Investment Committee on a quarterly and annual basis along with various investment managers, and is revised to achieve the optimal allocation to meet targeted funding levels if necessary. In addition, the funding policy is revised in accordance with local regulation every five years. The expected weighted average long-term rate of return for all our non-U.S. pension plans was 2.51 percent and 2.78 percent for the years ended December 31, 2019 and 2018, respectively. It is an aggregation of expected returns within each asset class that was generally developed based on the building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns. Assets Measured at Fair Value The following table presents information about our plan assets and indicates the level of the fair value measurement based on the observability of the inputs used. The inputs and methodology used in determining the fair value of these assets are consistent with those used to measure our assets as discussed in Note 6 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, 2019 Assets: Cash and cash equivalents $ 133 $ - $ - $ 133 $ 90 $ - $ - $ 90 Equity securities: U.S. (a) 278 - - 278 - - - - International (b) 161 25 - 186 156 49 - 205 Fixed maturity securities: U.S. investment grade (c) - 2,200 9 2,209 - - - - International investment grade (c) - 203 - 203 - 158 - 158 U.S. and international high yield (d) - 106 - 106 - 229 - 229 Mortgage and other asset-backed securities (e) - 48 - 48 - - - - Other fixed maturity securities - - - - - - - - Other investment types (f) : Futures ( 17) - - ( 17) - - - - Direct private equity (g) - - 11 11 - - - - Insurance contracts - 14 - 14 - - 160 160 Mutual Funds (h) - - - - - 57 - 57 Total $ 555 $ 2,596 $ 20 $ 3,171 $ 246 $ 493 $ 160 $ 899 At December 31, 2018 Assets: Cash and cash equivalents $ 501 $ - $ - $ 501 $ 97 $ - $ - $ 97 Equity securities: U.S. (a) 240 - - 240 - - - - International (b) 137 - - 137 218 84 - 302 Fixed maturity securities: U.S. investment grade (c) - 1,463 13 1,476 - - - - International investment grade (c) - 157 - 157 - 130 - 130 U.S. and international high yield (d) - 96 - 96 - 185 - 185 Mortgage and other asset-backed securities (e) - 36 - 36 - - - - Other fixed maturity securities - - - - - 2 - 2 Other investment types (f) : Futures 27 - - 27 - - - - Direct private equity (g) - - 14 14 - - - - Insurance contracts - 18 - 18 - - 145 145 Total $ 905 $ 1,770 $ 27 $ 2,702 $ 315 $ 401 $ 145 $ 861 (a) Includes passive and active U.S. equity strategies. (b) Includes passive and active international equity strategies. (c) Includes 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) Represents investments in collateralized loan obligations. As of December 31, 2019, the plan held additional asset-backed securities. (f) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $ 1,294 million and $ 1,138 million at December 31, 2019 and 2018, respectively. (g) Comprised of private capital financing including private debt and private equity securities. (h) Comprised of mutual fund investing in variety of equity, derivatives, and bonds. 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, 2019. Changes in Level 3 Fair Value Measurements The following table presents changes in our U.S. and non-U.S. Level 3 plan assets measured at fair value: Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2019 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 $ 13 $ 3 $ - $ ( 3) $ - $ - $ - $ ( 4) $ 9 $ 3 Direct private equity 14 ( 3) 2 ( 2) - - - - 11 2 Total $ 27 $ - $ 2 $ ( 5) $ - $ - $ - $ ( 4) $ 20 $ 5 Non-U.S. Plan Assets: Insurance contracts $ 145 $ 16 $ ( 1) $ - $ - $ - $ - $ - $ 160 $ - Total $ 145 $ 16 $ ( 1) $ - $ - $ - $ - $ - $ 160 $ - Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2018 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 $ 12 $ ( 2) $ 5 $ ( 3) $ - $ - $ 1 $ - $ 13 $ 1 Direct private equity 15 ( 2) 3 ( 2) - - - - 14 ( 1) Total $ 27 $ ( 4) $ 8 $ ( 5) $ - $ - $ 1 $ - $ 27 $ - Non-U.S. Plan Assets: Insurance contracts $ 113 $ 31 $ 1 $ - $ - $ - $ - $ - $ 145 $ - Total $ 113 $ 31 $ 1 $ - $ - $ - $ - $ - $ 145 $ - Expected Cash Flows Funding for the qualified plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. There are no minimum required cash contributions in 2019 for the U.S. AIG Retirement Plan. The non-qualified and postretirement plans’ benefit payments are deductible when paid to participants. Our annual pension contribution in 2020 is expected to be approximately $ 65 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 expected future benefit payments, net of participants’ contributions, with respect to the defined benefit pension plans and other postretirement benefit plans, are as follows: Pension Postretirement U.S. Non-U.S. U.S. Non-U.S. (in millions) Plans Plans Plans Plans 2020 $ 330 $ 47 $ 13 $ 1 2021 326 41 13 1 2022 334 42 13 2 2023 320 43 13 2 2024 320 49 12 2 2025-2029 1,473 252 50 10 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 three 195 million, $ 210 million and $ 209 million in 2019, 2018 and 2017, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | 23. Income Taxes U.S. Tax Reform Overview On December 22, 2017, the U.S. enacted Public Law 115-97, known informally as the Tax Cuts and Jobs Act (the Tax Act). The Tax Act reduced the statutory rate of U.S. federal corporate income tax to 21 percent and enacted numerous other changes impacting AIG and the insurance industry. The Tax Act includes provisions for Global Intangible Low-Taxed Income (GILTI) under which taxes are imposed on the excess of a deemed return on tangible assets of certain foreign subsidiaries and for Base Erosion and Anti-Abuse Tax (BEAT) under which taxes are imposed on certain base eroding payments to affiliated foreign companies. While the U.S. tax authorities issued formal guidance, including recently issued proposed and final regulations for BEAT and other provisions of the Tax Act, there are still certain aspects of the Tax Act that remain unclear and subject to substantial uncertainties. Additional guidance is expected in future periods. Such guidance may result in changes to the interpretations and assumptions we made and actions we may take, which may impact amounts recorded with respect to international provisions of the Tax Act, possibly materially. Consistent with accounting guidance, we treat BEAT as a period tax charge in the period the tax is incurred and have made an accounting policy election to treat GILTI taxes in a similar manner. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued an accounting standard that allows the optional reclassification of stranded tax effects within Accumulated Other Comprehensive Income (AOCI) that arise due to the enactment of the Tax Act to retained earnings. We elected to early adopt the standard for the three-month period ended March 31, 2018. As a result of adopting this standard, we reclassified $ 248 million from AOCI to retained earnings. The amount reclassified includes stranded effects related to the change in the U.S. federal corporate income tax rate on the gross temporary differences and related valuation allowances. We use an item-by-item approach to release the stranded or disproportionate income tax effects in AOCI related to our available-for-sale securities. Under this approach, a portion of the disproportionate tax effects is assigned to each individual security lot at the date the amount becomes lodged. When the individual securities are sold, mature, or are otherwise impaired on an other-than-temporary basis, the assigned portion of the disproportionate tax effect is reclassified from AOCI to income from continuing operations. EFFECTIVE TAX RATE 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) 2019 2018 2017 U.S. $ 3,825 $ ( 12) $ 1,940 Foreign 1,462 269 ( 474) Total $ 5,287 $ 257 $ 1,466 The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations: Years Ended December 31, (in millions) 2019 2018 2017 Foreign and U.S. components of actual income tax expense: U.S.: Current $ 278 $ 134 $ 427 Deferred 633 ( 175) 6,865 Foreign: Current 267 202 209 Deferred ( 12) ( 7) 25 Total $ 1,166 $ 154 $ 7,526 Our actual income tax (benefit) expense differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following: Years Ended December 31, 2019 2018 2017 Pre-Tax Tax Percent of Pre-Tax Tax Percent of Tax Percent of 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 $ 5,336 $ 1,120 21.0 % $ 255 $ 54 21.0 % $ 1,476 $ 517 35.0 % Adjustments: Tax exempt interest ( 25) ( 0.5) ( 37) ( 14.5) ( 111) ( 7.5) Uncertain tax positions* 258 4.8 176 69.0 660 44.7 Reclassifications from accumulated other comprehensive income ( 113) ( 2.1) ( 72) ( 28.2) ( 184) ( 12.5) Dispositions of Subsidiaries 21 0.4 - - 17 1.2 Tax Attribute Restoration - - - - - - Non-controlling Interest ( 5) ( 0.1) ( 1) ( 0.4) ( 7) ( 0.5) Non-deductible transfer pricing charges 15 0.3 29 11.4 35 2.4 Dividends received deduction ( 40) ( 0.7) ( 38) ( 14.8) ( 90) ( 6.1) Effect of foreign operations 69 1.3 44 17.3 69 4.7 Share-based compensation payments excess tax effect 27 0.5 ( 13) ( 5.1) ( 40) ( 2.7) State income taxes 13 0.2 10 3.9 ( 9) ( 0.6) Impact of Tax Act - - 62 24.3 6,687 453.0 Global intangible low-taxed income 13 0.2 21 8.2 - - Other* ( 134) ( 2.5) ( 102) ( 40.0) ( 58) ( 3.9) Effect of discontinued operations ( 8) ( 0.1) 40 15.7 3 0.2 Valuation allowance: Continuing operations ( 44) ( 0.8) 21 8.2 43 2.9 Consolidated total amounts 5,336 1,167 21.9 255 194 76.0 1,476 7,532 510.3 Amounts attributable to discontinued operations 49 1 2.0 ( 2) 40 NM 10 6 60.0 Amounts attributable to continuing operations $ 5,287 $ 1,166 22.1 % $ 257 $ 154 59.9 % $ 1,466 $ 7,526 513.4 % * 2019 includes a net charge of $ 96 million related to the accrual of IRS interest, of which $ 207 million tax expense is reported in Uncertain Tax Positions and $( 111) million tax benefit is reported in Other. 2018 includes a net charge of $ 83 million related to the accrual of IRS interest, of which $ 189 million tax expense is reported in Uncertain Tax Positions and $( 106) million tax benefit is reported in Other. 2017 includes a net charge of $ 301 million related to the accrual of IRS interest, of which $ 245 million tax expense is reported in Uncertain Tax Positions and $ 56 million tax expense is reported in Other. For the year ended December 31, 2019, the effective tax rate on income from continuing operations was 22.1 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to a $ 96 million net charge principally related to the accrual of IRS interest (including interest related to uncertain tax positions), $ 82 million associated with the effect of foreign operations, $ 37 million of tax charges and related interest associated with increases in uncertain tax positions primarily related to open tax issues and audits in state and local jurisdictions, $ 27 million of excess tax charges related to share-based compensation payments recorded through the income statement, and $ 15 million of non-deductible transfer pricing charges, partially offset by tax benefits of $ 113 million of reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities, $ 65 million associated with tax exempt income, and $ 44 million of valuation allowance activity related to certain foreign subsidiaries and state jurisdictions. Effect of foreign operations is primarily related to income and losses in our foreign operations taxed at statutory tax rates different than 21 percent, and foreign income subject to U.S. taxation. For the year ended December 31, 2018, the effective tax rate on income from continuing operations was 59.9 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to a $ 83 million net charge primarily related to the accrual of IRS interest (including interest related to uncertain tax positions), $ 62 million measurement period adjustment related to the deemed repatriation tax, $ 44 million associated with the effect of foreign operations, $ 29 million of non-deductible transfer pricing charges, $ 21 million of additional U.S. taxes imposed on income of our foreign subsidiaries under international provisions of the Tax Act, and $ 21 million of valuation allowance activity related to certain foreign subsidiaries and state jurisdictions, partially offset by tax benefits of $ 75 million associated with tax exempt income, and $ 72 million of reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities. Effect of foreign operations is primarily related to income and losses in our foreign operations taxed at statutory tax rates different than 21 percent and foreign income subject to U.S. taxation. For the year ended December 31, 2017, the effective tax rate on income from continuing operations was not meaningful. The effective tax rate differs from the 2017 statutory tax rate of 35 percent primarily due to tax charges of $ 6.7 billion associated with the enactment of the Tax Act discussed above, $ 660 million of tax charges and related interest associated with increases in uncertain tax positions primarily related to cross border financing transactions and other open tax issues, $ 69 million associated with the effect of foreign operations, and $ 35 million of non-deductible transfer pricing charges, partially offset by tax benefits of $ 201 million of tax exempt income, $ 184 million of reclassifications from accumulated other comprehensive income to income from continuing operations related to the disposal of available for sale securities, and $ 40 million of excess tax deductions related to share based compensation payments recorded through the income statement in accordance with relevant accounting literature. Effect of foreign operations is primarily related to losses incurred in our European operations taxed at a statutory tax rate lower than 35 percent and other foreign taxes. As a result of the Tax Act, the majority of accumulated foreign earnings that were previously untaxed were subject to a one-time deemed repatriation tax. Going forward, certain foreign earnings of our foreign affiliates will be exempt from U.S. tax upon repatriation. Notwithstanding the changes, U.S. tax on foreign exchange gain or loss and certain non-U.S. withholding taxes will continue to be applicable upon future repatriations of foreign earnings. For the year ended December 31, 2019, we consider our foreign earnings with respect to certain operations in Canada, South Africa, the Far East, Latin America, Bermuda as well as the European, Asia Pacific and Middle East regions to be indefinitely reinvested. These earnings relate to ongoing operations and have been reinvested in active business operations. While, following the enactment of the Tax Act, distributions from foreign affiliates are, generally, not subject to U.S. income tax, such distributions may be subject to non-U.S. withholding taxes. A deferred tax liability of approximately $ 110 million related to such withholding taxes has not been recorded for those foreign subsidiaries whose earnings are considered to be indefinitely reinvested. Additionally, as of December 31, 2019, we do not project any significant potential U.S. tax with respect to foreign currency gains or losses accumulated on previously taxed unremitted foreign earnings and therefore no deferred tax has been recorded. Deferred taxes, if necessary, have been provided on earnings of non-U.S. affiliates whose earnings are not indefinitely reinvested. The following table presents the components of the net deferred tax assets (liabilities): December 31, (in millions) 2019 2018 Deferred tax assets: Losses and tax credit carryforwards $ 10,541 $ 11,792 Basis differences on investments 2,673 2,038 Life policy reserves 1,766 2,200 Accruals not currently deductible, and other 743 608 Investments in foreign subsidiaries 148 173 Loss reserve discount 471 272 Loan loss and other reserves 58 - Unearned premium reserve reduction 382 504 Fixed assets and intangible assets 963 531 Other 319 962 Employee benefits 617 604 Total deferred tax assets 18,681 19,684 Deferred tax liabilities: Deferred policy acquisition costs ( 2,200) ( 2,342) Unrealized gains related to available for sale debt securities ( 2,123) ( 490) Loan loss and other reserves - ( 20) Total deferred tax liabilities ( 4,323) ( 2,852) Net deferred tax assets before valuation allowance 14,358 16,832 Valuation allowance ( 1,427) ( 1,780) Net deferred tax assets (liabilities) $ 12,931 $ 15,052 The following table presents our U.S. consolidated income tax group tax losses and credits carryforwards as of December 31, 2019. Unlimited Carryforward Period and December 31, 2019 Carryforward Tax Carryforward Period Ending Tax Year (b) Periods (b) (in millions) Gross Effected 2020 2021 2022 2023 2024 2025 2026 - After Net operating loss carryforwards $ 32,143 $ 6,750 $ - $ - $ - $ - $ - $ - $ 6,750 Capital loss carryforwards $ - - - - - - - - - Foreign tax credit carryforwards 2,249 738 116 683 711 - - - Other carryforwards - - - - - - - - Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S. GAAP basis (a) $ 8,999 $ 738 $ 116 $ 683 $ 711 $ - $ - $ 6,750 (a) Financial reporting basis is net of unrecognized tax benefits of $ 2.1 billion for those tax years in which tax attributes are available for use when settlement occurs. (b) Carryforward periods are based on U.S. tax laws governing utilization of tax attributes. Expiration periods are based on the year the carryforward was generated. 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, frequency, and amount of cumulative financial reporting income and losses in recent years; the sustainability of recent operating profitability of our subsidiaries; the predictability of future operating profitability of the character necessary to realize the net deferred tax asset, including forecasts of future income for each of our businesses and actual and planned business and operational changes; 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 that 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 operating 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 carryforward 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 offset by our 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, 2019, 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, including income generated from prudent and feasible actions and tax planning strategies and any changes to interpretations and assumptions related to the impact of the Tax Act 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, 2019, recent changes in market conditions, including interest rate fluctuations, impacted the unrealized tax gains and losses in the U.S. Life Insurance Companies’ available for sale securities portfolio, resulting in a deferred tax liability related to net unrealized tax capital gains. As of December 31, 2019, based on all available evidence, we concluded that no valuation allowance is required. For the year ended December 31, 2019, we released $ 290 million of valuation allowance associated with the unrealized tax losses in the U.S. Life Insurance Companies’ available for sale securities portfolio, all of which was allocated to other comprehensive income. We released the full amount of valuation allowance previously recorded during the three-month period ended March 31, 2019 and no additional activity was recorded for the remainder of 2019. For the year ended December 31, 2019, recent changes in market conditions, including interest rate fluctuations, impacted the unrealized tax gains and losses in the U.S. Non-Life Companies’ available for sale securities portfolio, resulting in an increase to the deferred tax liability related to net unrealized tax capital gains. As of December 31, 2019, we continue to be in an overall unrealized tax gain position with respect to the U.S. Non-Life Companies’ available for sale securities portfolio and thus concluded no valuation allowance is necessary in the U.S. Non-Life Companies’ available for sale securities portfolio. For the year ended December 31, 2019, we recognized a net decrease of $ 44 million in our deferred tax asset valuation allowance associated with certain foreign subsidiaries and state jurisdictions, primarily attributable to current year activity. The following table presents the net deferred tax assets (liabilities) at December 31, 2019 and 2018 on a U.S. GAAP basis: December 31, (in millions) 2019 2018 Net U.S. consolidated return group deferred tax assets $ 14,622 $ 15,479 Net deferred tax assets (liabilities) in accumulated other comprehensive income ( 2,055) ( 510) Valuation allowance ( 90) ( 405) Subtotal 12,477 14,564 Net foreign, state and local deferred tax assets 2,006 2,031 Valuation allowance ( 1,337) ( 1,374) Subtotal 669 657 Subtotal - Net U.S., foreign, state and local deferred tax assets 13,146 15,221 Net foreign, state and local deferred tax liabilities ( 215) ( 169) Total AIG net deferred tax assets (liabilities) $ 12,931 $ 15,052 Deferred Tax Asset Valuation Allowance of U.S. Consolidated FEDERAL Income Tax Group At December 31, 2019 and 2018, our U.S. consolidated income tax group had net deferred tax assets after valuation allowance of $ 12.5 billion and $ 14.6 billion, respectively. At December 31, 2019 and 2018, our U.S. consolidated income tax group had valuation allowances of $ 90 million and $ 405 million, respectively. Deferred Tax ASSET — Foreign, State and Local At December 31, 2019 and 2018, we had net deferred tax assets (liabilities) of $ 454 million and $ 488 million, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. At December 31, 2019 and 2018, we had deferred tax asset valuation allowances of $ 1.3 billion and $ 1.4 billion, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. We maintained these valuation allowances following our conclusion that we could not demonstrate that it was more likely than not that the related deferred tax assets will be realized. This was primarily due to factors such as cumulative losses in recent years and the inability to demonstrate profits within the specific jurisdictions over the relevant carryforward periods. Tax Examinations and Litigation We file a consolidated U.S. federal income tax return with our eligible U.S. subsidiaries. Income earned by subsidiaries operating outside the U.S. is taxed, and income tax expense is recorded, based on applicable U.S. and foreign law. The statute of limitations for all tax years prior to 2000 has expired for our consolidated federal income tax return. We are currently under examination for the tax years 2000 through 2013. On March 20, 2008, we received a Statutory Notice of Deficiency (Notice) from the IRS for years 1997 to 1999. The Notice asserted that we owe additional taxes and penalties for these years primarily due to the disallowance of foreign tax credits associated with cross-border financing transactions. The transactions that are the subject of the Notice extend beyond the period covered by the Notice, and the IRS has administratively challenged the later periods. 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 penalties paid with respect to the 1997 taxable year. We allege that the IRS improperly disallowed foreign tax credits and that our taxable income should be reduced as a result of the 2005 restatement of our consolidated financial statements. We also filed an administrative refund claim on September 9, 2010 for our 1998 and 1999 tax years. On August 1, 2012, we filed a motion for partial summary judgment related to the disallowance of foreign tax credits associated with cross border financing transactions 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 been remanded back to the Southern District of New York for a jury trial. In January 2018, the parties reached non-binding agreements in principle on issues presented in the dispute and are currently reviewing the computations reflecting the settlement terms. The resolution is not final and is subject to various reviews. In 2019, we agreed with the IRS to execute an agreement for the tax years at issue in which AIG waives restrictions on the assessment of additional tax related to the settlement of the underlying issues in those tax years. The litigation has been stayed pending the outcome of the review process. We can provide no assurance regarding the outcome of any such litigation or whether binding compromised settlements with the parties will ultimately be reached. We currently believe that we have adequate reserves for the potential liabilities that may result from these matters. 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) 2019 2018 2017 Gross unrecognized tax benefits, beginning of year $ 4,709 $ 4,707 $ 4,530 Increases in tax positions for prior years 51 14 210 Decreases in tax positions for prior years ( 1) ( 6) ( 33) Increases in tax positions for current year 4 - - Settlements ( 1) ( 6) - Gross unrecognized tax benefits, end of year $ 4,762 $ 4,709 $ 4,707 At December 31, 2019, 2018 and 2017, our unrecognized tax benefits, excluding interest and penalties, were $ 4.8 billion, $ 4.7 billion and $ 4.7 billion, respectively. The activity for the year ended December 31, 2019 includes increases primarily related to open tax issues and audits in state and local jurisdictions. The activity for the year ended 2018 is not material. The activity for the year ended December 31, 2017 includes increases for amounts associated with cross border financing transactions and the impact of settlement discussions with the IRS related to certain other open tax issues unrelated to the cross border financing transactions. At December 31, 2019, 2018 and 2017, our unrecognized tax benefits related to tax positions that, if recognized, would not affect the effective tax rate because they relate to such factors as the timing, rather than the permissibility, of the deduction were $ 43 million, $ 38 million and $ 28 million, respectively. Accordingly, at December 31, 2019, 2018 and 2017, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $ 4.7 billion, $ 4.7 billion and $ 4.7 billion, respectively. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At December 31, 2019, 2018, and 2017, we had accrued liabilities of $ 2.4 billion, $ 2.2 billion, and $ 2.0 billion, respectively, for the payment of interest (net of the federal benefit) and penalties. For the years ended December 31, 2019, 2018, and 2017, we accrued expense of $ 236 million, $ 190 million and $ 776 million, respectively, for the payment of interest and penalties. The activity for the period ended December 31, 2018, is primarily related to a decrease in the expected federal benefit of interest due to the U.S. corporate tax rate reduction and to an increase in interest and penalties associated with cross border financing transactions. We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next 12 months by as much as $ 3.6 billion, principally as a result of potential resolutions or settlements of prior years’ tax items. The prior years’ tax items include unrecognized tax benefits related to the deductibility of certain expenses and matters related to cross border financing transactions. Listed below are the tax years that remain subject to examination by major tax jurisdictions: At December 31, 2019 Open Tax Years Major Tax Jurisdiction United States 2000- 2018 Australia 2015- 2018 France 2017- 2019 Japan 2013- 2018 Korea 2014- 2018 Singapore 2015- 2018 United Kingdom 2018- 2019 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
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 common share data) 2019 2018 2019 2018 2019 2018 2019 2018 Total revenues $ 12,456 $ 11,712 $ 12,561 $ 11,631 $ 12,914 $ 11,486 $ 11,815 $ 12,560 Income (loss) from continuing operations before income taxes * 1,154 1,227 1,837 1,252 1,260 ( 1,527) 1,036 ( 695) Income (loss) from discontinued operations, net of income taxes - ( 1) ( 1) - - ( 39) 49 ( 2) Net income (loss) 937 949 1,390 931 973 ( 1,259) 869 ( 560) Net income (loss) from continuing operations attributable to noncontrolling interests 283 11 281 ( 6) 317 - ( 60) 62 Net income (loss) attributable to AIG 654 938 1,109 937 656 ( 1,259) 929 ( 622) Net income (loss) attributable to AIG common shareholders * $ 654 $ 938 $ 1,102 $ 937 $ 648 $ ( 1,259) $ 922 $ ( 622) Income (loss) per common share attributable to AIG common shareholders: Basic: Income (loss) from continuing operations $ 0.75 $ 1.03 $ 1.26 $ 1.04 $ 0.74 $ ( 1.37) $ 0.99 $ ( 0.70) Income (loss) from discontinued operations $ - $ - $ - $ - $ - $ ( 0.04) $ 0.06 $ - Diluted: Income (loss) from continuing operations $ 0.75 $ 1.01 $ 1.24 $ 1.02 $ 0.72 $ ( 1.37) $ 0.97 $ ( 0.70) Income (loss) from discontinued operations $ - $ - $ - $ - $ - $ ( 0.04) $ 0.06 $ - Weighted average shares outstanding: Basic 875,383,084 907,951,597 876,382,884 903,215,488 877,009,495 895,237,359 878,210,228 887,508,718 Diluted 877,512,244 925,266,577 888,325,042 916,572,481 895,814,410 895,237,359 896,380,725 887,508,718 Noteworthy quarterly items - (income) expense: Prior year unfavorable (favorable) development ( 15) ( 40) ( 132) ( 26) ( 74) 949 ( 119) 546 Restructuring and other costs 47 24 60 200 67 35 44 136 * For the three-month period ended December 31, 2018, our results include out of period adjustments relating to prior periods that decreased Net income attributable to AIG common shareholders by $ 87 million, and decreased Income from continuing operations before income taxes by $ 132 million. The out of period adjustments for the three-month period are primarily related to decreases in Premiums and decreases in Net realized capital gains and losses. We determined that these adjustments were not material to the current quarter or to any previously reported quarterly financial statements. Had these adjustments been recorded in their appropriate periods, Net income attributable to AIG common shareholders for the three-month period ended September 30, 2018 would have decreased by $ 40 million with impact to the three-month periods ended June 30, 2018 and March 31, 2018, respectively. |
INFORMATION PROVIDED IN CONNECT
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 12 Months Ended |
Dec. 31, 2019 | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTADING DEBT | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT | 25. Information Provided in Connection with Outstanding Debt The following Condensed Consolidating Financial Statements reflect the results of Validus and AIGLH, each a holding company and a 100 percent owned subsidiary of AIG. AIG provides a full and unconditional guarantee of the senior notes of Validus and all outstanding debt of AIGLH. Condensed Consolidating Balance Sheets American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG December 31, 2019 Assets: Short-term investments (a) $ 3,329 $ - $ - $ 12,496 $ ( 2,595) $ 13,230 Other investments (b) 4,804 - - 319,622 ( 41) 324,385 Total investments 8,133 - - 332,118 ( 2,636) 337,615 Cash 2 8 9 2,837 - 2,856 Loans to subsidiaries (c) 35,352 - - 715 ( 36,067) - Investment in consolidated subsidiaries (c) 39,921 3,646 30,216 - ( 73,783) - Other assets, including deferred income taxes (d) 14,391 1,793 17 170,642 ( 2,250) 184,593 Total assets $ 97,799 $ 5,447 $ 30,242 $ 506,312 $ ( 114,736) $ 525,064 Liabilities: Insurance liabilities $ - $ - $ - $ 302,406 $ - $ 302,406 Long-term debt and debt of consolidated investment entities 22,030 353 643 12,324 - 35,350 Other liabilities, including intercompany balances (b) 9,379 10 42 115,313 ( 4,863) 119,881 Loans from subsidiaries (c) 715 - - 35,353 ( 36,068) - Total liabilities 32,124 363 685 465,396 ( 40,931) 457,637 Total AIG shareholders’ equity 65,675 5,084 29,557 39,164 ( 73,805) 65,675 Non-redeemable noncontrolling interests - - - 1,752 - 1,752 Total equity 65,675 5,084 29,557 40,916 ( 73,805) 67,427 Total liabilities and equity $ 97,799 $ 5,447 $ 30,242 $ 506,312 $ ( 114,736) $ 525,064 December 31, 2018 Assets: Short-term investments (a) $ 1,141 $ 2 $ - $ 10,329 $ ( 1,798) $ 9,674 Other investments (b) 3,377 - - 301,158 - 304,535 Total investments 4,518 2 - 311,487 ( 1,798) 314,209 Cash 2 9 9 2,853 - 2,873 Loans to subsidiaries (c) 34,963 - - 615 ( 35,578) - Investment in consolidated subsidiaries (c) 33,300 4,029 25,058 (e) - ( 62,387) (e) - Other assets, including deferred income taxes (d) 15,389 1,798 124 159,430 ( 1,839) 174,902 Total assets $ 88,172 $ 5,838 $ 25,191 $ 474,385 $ ( 101,602) $ 491,984 Liabilities: Insurance liabilities $ - $ - $ - $ 293,652 $ - $ 293,652 Long-term debt and debt of consolidated investment entities 22,422 359 643 11,116 - 34,540 Other liabilities, including intercompany balances (b) 8,774 228 144 100,974 ( 3,637) 106,483 Loans from subsidiaries (c) 615 - - 34,963 ( 35,578) - Total liabilities 31,811 587 787 440,705 ( 39,215) 434,675 Total AIG shareholders’ equity 56,361 5,251 24,404 (e) 32,732 ( 62,387) (e) 56,361 Non-redeemable noncontrolling interests - - - 948 - 948 Total equity 56,361 5,251 24,404 33,680 ( 62,387) 57,309 Total liabilities and equity $ 88,172 $ 5,838 $ 25,191 $ 474,385 $ ( 101,602) $ 491,984 (a) At December 31, 2019, includes restricted cash of $ 102 million and $ 86 million for American International Group, Inc. (as Guarantor) and Other Subsidiaries, respectively. At December 31, 2018, includes restricted cash of $ 124 million and $ 18 million for American International Group, Inc. (as Guarantor) and Other Subsidiaries, respectively. (b) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment. (c) Eliminated in consolidation. (d) At December 31, 2019, includes restricted cash of $ 1 million and $ 242 million for American International Group, Inc. (as Guarantor) and Other Subsidiaries, respectively. At December 31, 2018, includes restricted cash of $ 1 million and $ 342 million for American International Group, Inc. (as Guarantor) and Other Subsidiaries, respectively. (e) The Investment in consolidated subsidiaries amounts for AIGLH and Reclassifications and Eliminations in 2018 have been revised from $ 26.3 billion to $ 25.1 billion and from $( 63.7) billion to $( 62.4) billion, respectively, to correct Total assets in 2018. The AIG shareholders’ equity amounts for AIGLH and Reclassifications and Eliminations in 2018 have been revised from $ 25.7 billion to $ 24.4 billion and from $( 63.7) billion to $( 62.4) billion, respectively, to correct Total equity in 2018. These corrections in 2018 have no impact on AIG’s consolidated financial statements and are not considered material to previously issued financial statements. Condensed Consolidating Statements of Income (Loss) American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2019 Revenues: Equity in earnings of consolidated subsidiaries (a) $ 3,863 $ 303 $ 325 $ - $ ( 4,491) $ - Other income 1,156 9 - 48,751 ( 170) 49,746 Total revenues 5,019 312 325 48,751 ( 4,661) 49,746 Expenses: Interest expense 985 17 50 380 ( 15) 1,417 Loss on extinguishment of debt - - - 32 - 32 Other expenses 729 18 3 42,415 ( 155) 43,010 Total expenses 1,714 35 53 42,827 ( 170) 44,459 Income (loss) from continuing operations before income tax expense (benefit) 3,305 277 272 5,924 ( 4,491) 5,287 Income tax expense (benefit) ( 45) - ( 6) 1,217 - 1,166 Income (loss) from continuing operations 3,350 277 278 4,707 ( 4,491) 4,121 Income (loss) from discontinued operations, net of income taxes ( 2) - - 50 - 48 Net income (loss) 3,348 277 278 4,757 ( 4,491) 4,169 Less: Net income from continuing operations attributable to noncontrolling interests - - - 821 - 821 Net income (loss) attributable to AIG $ 3,348 $ 277 $ 278 $ 3,936 $ ( 4,491) $ 3,348 Year Ended December 31, 2018 Revenues: Equity in earnings of consolidated subsidiaries (a) $ ( 580) $ ( 240) $ 3,359 (b) $ - $ ( 2,539) (b) $ - Other income 938 23 1 46,506 ( 79) 47,389 Total revenues 358 ( 217) 3,360 46,506 ( 2,618) 47,389 Expenses: Interest expense 954 18 50 302 ( 15) 1,309 Loss on extinguishment of debt - - - 7 - 7 Other expenses 803 27 3 45,048 ( 65) 45,816 Total expenses 1,757 45 53 45,357 ( 80) 47,132 Income (loss) from continuing operations before income tax expense (benefit) ( 1,399) ( 262) 3,307 1,149 ( 2,538) 257 Income tax expense (benefit) ( 1,433) - 39 1,548 - 154 Income (loss) from continuing operations 34 ( 262) 3,268 ( 399) ( 2,538) 103 Loss from discontinued operations, net of income taxes ( 40) - - ( 2) - ( 42) Net income (loss) ( 6) ( 262) 3,268 ( 401) ( 2,538) 61 Less: Net income from continuing operations attributable to noncontrolling interests - - - 67 - 67 Net income (loss) attributable to AIG $ ( 6) $ ( 262) $ 3,268 $ ( 468) $ ( 2,538) $ ( 6) American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2017 Revenues: Equity in earnings of consolidated subsidiaries (a) $ ( 149) $ - $ 1,328 (b) $ - $ ( 1,179) (b) $ - Other income 891 - - 48,802 ( 173) 49,520 Total revenues 742 - 1,328 48,802 ( 1,352) 49,520 Expenses: Interest expense 949 - 50 176 ( 7) 1,168 (Gain) loss on extinguishment of debt 2 - - ( 7) - ( 5) Other expenses 952 - 2 46,116 ( 179) 46,891 Total expenses 1,903 - 52 46,285 ( 186) 48,054 Income (loss) from continuing operations before income tax expense (benefit) ( 1,161) - 1,276 2,517 ( 1,166) 1,466 Income tax expense (benefit) 4,922 - ( 3) 2,607 - 7,526 Income (loss) from continuing operations ( 6,083) - 1,279 ( 90) ( 1,166) ( 6,060) Income (loss) from discontinued operations, net of income taxes ( 1) - - 5 - 4 Net income (loss) ( 6,084) - 1,279 ( 85) ( 1,166) ( 6,056) Less: Net income from continuing operations attributable to noncontrolling interests - - - 28 - 28 Net income (loss) attributable to AIG $ ( 6,084) $ - $ 1,279 $ ( 113) $ ( 1,166) $ ( 6,084) (a) Eliminated in consolidation. (b) Equity in earnings of consolidated subsidiaries amounts for AIGLH and Reclassifications and Eliminations in 2018 have been revised from $ 2.8 billion to $ 3.4 billion and from $( 2.0) billion to $( 2.5) billion, respectively, to correct Total revenues in 2018. Equity in earnings of consolidated subsidiaries amounts for AIGLH and Reclassifications and Eliminations in 2017 have been revised from $ 1.9 billion to $ 1.3 billion and from $( 1.8) billion to $( 1.2) billion, respectively, to correct Total revenues in 2017. These corrections in 2018 and 2017 have no impact on AIG’s consolidated financial statements and are not considered material to previously issued financial statements. Condensed Consolidating Statements of Comprehensive Income (Loss) American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2019 Net income (loss) $ 3,348 $ 277 $ 278 $ 4,757 $ ( 4,491) $ 4,169 Other comprehensive income (loss) 6,395 1 6,209 6,370 ( 12,560) 6,415 Comprehensive income (loss) 9,743 278 6,487 11,127 ( 17,051) 10,584 Total comprehensive income attributable to noncontrolling interests - - - 841 - 841 Comprehensive income (loss) attributable to AIG $ 9,743 $ 278 $ 6,487 $ 10,286 $ ( 17,051) $ 9,743 Year Ended December 31, 2018 Net income (loss) $ ( 6) $ ( 262) $ 3,268 (a) $ ( 401) $ ( 2,538) (a) $ 61 Other comprehensive income (loss) ( 6,302) - ( 4,555) (b) ( 6,810) (b) 11,374 (b) ( 6,293) Comprehensive income (loss) ( 6,308) ( 262) ( 1,287) ( 7,211) 8,836 ( 6,232) Total comprehensive income attributable to noncontrolling interests - - - 76 - 76 Comprehensive income (loss) attributable to AIG $ ( 6,308) $ ( 262) $ ( 1,287) $ ( 7,287) $ 8,836 $ ( 6,308) Year Ended December 31, 2017 Net income (loss) $ ( 6,084) $ - $ 1,279 (a) $ ( 85) $ ( 1,166) (a) $ ( 6,056) Other comprehensive income (loss) 2,235 - 1,844 (b) 2,021 (b) ( 3,865) (b) 2,235 Comprehensive income (loss) ( 3,849) - 3,123 1,936 ( 5,031) ( 3,821) Total comprehensive income attributable to noncontrolling interests - - - 28 - 28 Comprehensive income (loss) attributable to AIG $ ( 3,849) $ - $ 3,123 $ 1,908 $ ( 5,031) $ ( 3,849) (a) Net income (loss) amounts for AIGLH and Reclassifications and Eliminations in 2018 have been revised from $ 2.8 billion to $ 3.3 billion and from $( 2.0) billion to $( 2.5) billion, respectively, to correct Comprehensive income (loss) in 2018. Net income (loss) amounts for AIGLH and Reclassifications and Eliminations in 2017 have been revised from $ 1.9 billion to $ 1.3 billion and from $( 1.8) billion to $( 1.2) billion, respectively, to correct Comprehensive income (loss) in 2017. These corrections in 2018 and 2017 have no impact on AIG’s consolidated financial statements and are not considered material to previously issued financial statements. (b) The Other comprehensive income (loss) amounts for AIGLH, Other Subsidiaries, and Reclassifications and Eliminations in 2018 have been revised from $ 2.5 billion to $( 4.6) billion, from $ 12.3 billion to $( 6.8) billion, and from $( 14.8) billion to $ 11.4 billion, respectively, to correct Comprehensive income (loss) in 2018. The Other comprehensive income (loss) amounts for AIGLH, Other Subsidiaries, and Reclassifications and Eliminations in 2017 have been revised from $ 7.8 billion to $ 1.8 billion, from $ 17.8 billion to $ 2.0 billion, and from $( 25.7) billion to $( 3.9) billion, respectively, to correct Comprehensive income (loss) in 2017. These corrections in 2018 and 2017 have no impact on AIG’s consolidated financial statements and are not considered material to previously issued financial statements. Condensed Consolidating Statements of Cash Flows American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2019 Net cash (used in) provided by operating activities $ 3,484 $ 187 $ 1,470 $ ( 1,439) $ ( 4,630) $ ( 928) Cash flows from investing activities: Sales of investments 2,313 2 - 63,830 ( 583) 65,562 Sales of divested businesses, net - - - 2 - 2 Purchase of investments ( 2,957) - - ( 66,535) 583 ( 68,909) Loans to subsidiaries - net 513 - - ( 93) ( 420) - Contributions from (to) subsidiaries - net ( 237) - - - 237 - Net change in short-term investments ( 2,170) - - ( 1,463) - ( 3,633) Other, net 67 - - 1,436 - 1,503 Net cash (used in) provided by investing activities ( 2,471) 2 - ( 2,823) ( 183) ( 5,475) Cash flows from financing activities: Issuance of long-term debt and debt of consolidated investment entities 595 - - 3,286 - 3,881 Repayments of long-term debt and debt of consolidated investment entities ( 1,006) - - ( 2,196) - ( 3,202) Issuance of preferred stock 485 - - - - 485 Purchase of common stock - - - - - - Intercompany loans - net 93 - - ( 513) 420 - Cash dividends paid on preferred stock ( 22) - - - - ( 22) Cash dividends paid on common stock ( 1,114) ( 190) ( 1,470) ( 2,970) 4,630 ( 1,114) Other, net ( 66) - - 6,654 ( 237) 6,351 Net cash (used in) provided by financing activities ( 1,035) ( 190) ( 1,470) 4,261 4,813 6,379 Effect of exchange rate changes on cash and restricted cash - - - 16 - 16 Change in cash and restricted cash ( 22) ( 1) - 15 - ( 8) Cash and restricted cash at beginning of year 127 9 9 3,213 - 3,358 Change in cash of businesses held for sale - - - ( 63) - ( 63) Cash and restricted cash at end of year $ 105 $ 8 $ 9 $ 3,165 $ - $ 3,287 Year Ended December 31, 2018 Net cash (used in) provided by operating activities $ 1,256 $ 656 $ 2,445 $ 1,651 $ ( 5,947) $ 61 Cash flows from investing activities: Sales of investments 5,587 13 - 59,918 ( 3,206) 62,312 Sales of divested businesses, net - - - 10 - 10 Purchase of investments ( 1,980) - - ( 59,778) 3,206 ( 58,552) Loans to subsidiaries - net 868 - - ( 90) ( 778) - Contributions from (to) subsidiaries - net 1 - - - ( 1) - Acquisition of businesses, net of cash and restricted cash acquired ( 5,475) 112 - ( 354) - ( 5,717) Net change in short-term investments 1,533 - - ( 9) - 1,524 Other, net ( 73) - - 273 - 200 Net cash (used in) provided by investing activities 461 125 - ( 30) ( 779) ( 223) Cash flows from financing activities: Issuance of long-term debt and debt of consolidated investment entities 2,470 - - 2,264 - 4,734 Repayments of long-term debt and debt of consolidated investment entities ( 1,493) ( 350) - ( 1,829) - ( 3,672) Purchase of common stock ( 1,739) - - - - ( 1,739) Intercompany loans - net 90 - - ( 868) 778 - Cash dividends paid on common stock ( 1,138) ( 6) ( 2,456) ( 3,485) 5,947 ( 1,138) Other, net 212 ( 416) - 2,812 1 2,609 Net cash (used in) provided by financing activities ( 1,598) ( 772) ( 2,456) ( 1,106) 6,726 794 Effect of exchange rate changes on cash and restricted cash - - - ( 11) - ( 11) Change in cash and restricted cash 119 9 ( 11) 504 - 621 Cash and restricted cash at beginning of year 8 - 20 2,709 - 2,737 Cash and restricted cash at end of year $ 127 $ 9 $ 9 $ 3,213 $ - $ 3,358 American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2017 Net cash (used in) provided by operating activities $ 36 $ - $ 1,413 $ ( 6,659) $ ( 2,608) $ ( 7,818) Cash flows from investing activities: Sales of investments 5,821 - - 74,477 ( 3,758) 76,540 Sales of divested businesses, net 40 - - 752 - 792 Purchase of investments ( 2,465) - - ( 64,539) 3,758 ( 63,246) Loans to subsidiaries - net 199 - - 63 ( 262) - Contributions from (to) subsidiaries - net 2,446 - - - ( 2,446) - Net change in short-term investments 1,994 - - 104 - 2,098 Other, net ( 183) - ( 5) ( 1,955) - ( 2,143) Net cash (used in) provided by investing activities 7,852 - ( 5) 8,902 ( 2,708) 14,041 Cash flows from financing activities: Issuance of long-term debt and debt of consolidated investment entities 1,505 - - 1,851 - 3,356 Repayments of long-term debt and debt of consolidated investment entities ( 1,724) - - ( 1,974) - ( 3,698) Purchase of common stock ( 6,275) - - - - ( 6,275) Intercompany loans - net ( 63) - - ( 199) 262 - Cash dividends paid on common stock ( 1,172) - ( 1,422) ( 1,186) 2,608 ( 1,172) Other, net ( 154) - - ( 200) 2,446 2,092 Net cash (used in) provided by financing activities ( 7,883) - ( 1,422) ( 1,708) 5,316 ( 5,697) Effect of exchange rate changes on cash and restricted cash - - - ( 29) - ( 29) Change in cash and restricted cash 5 - ( 14) 506 - 497 Cash and restricted cash at beginning of year 3 - 34 2,070 - 2,107 Change in cash of businesses held for sale - - - 133 - 133 Cash and restricted cash at end of year $ 8 $ - $ 20 $ 2,709 $ - $ 2,737 Supplementary Disclosure of Condensed Consolidating Cash Flow Information American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2019 Cash $ 2 $ 8 $ 9 $ 2,837 $ - $ 2,856 Restricted cash included in Short-term investments 102 - - 86 - 188 Restricted cash included in Other assets 1 - - 242 - 243 Total cash and restricted cash shown in the Condensed Consolidating Statements of Cash Flows $ 105 $ 8 $ 9 $ 3,165 $ - $ 3,287 Cash (paid) received during the year ended December 31, 2019 for: Interest: Third party $ ( 941) $ ( 22) $ ( 50) $ ( 313) $ - $ ( 1,326) Intercompany ( 3) 45 - ( 42) - - Taxes: Income tax authorities $ ( 11) $ - $ - $ ( 241) $ - $ ( 252) Intercompany 1,179 2 - ( 1,181) - - Year Ended December 31, 2018 Cash $ 2 $ 9 $ 9 $ 2,853 $ - $ 2,873 Restricted cash included in Short-term investments 124 - - 18 - 142 Restricted cash included in Other assets 1 - - 342 - 343 Total cash and restricted cash shown in the Condensed Consolidating Statements of Cash Flows $ 127 $ 9 $ 9 $ 3,213 $ - $ 3,358 Cash (paid) received during the year ended December 31, 2018 for: Interest: Third party $ ( 914) $ ( 17) $ ( 48) $ ( 333) $ - $ ( 1,312) Intercompany 1 - ( 1) - - - Taxes: Income tax authorities $ ( 32) $ - $ - $ ( 122) $ - $ ( 154) Intercompany 895 - - ( 895) - - Year Ended December 31, 2017 Cash $ 3 $ - $ 20 $ 2,339 $ - $ 2,362 Restricted cash included in Short-term investments 4 - - 54 - 58 Restricted cash included in Other assets 1 - - 316 - 317 Total cash and restricted cash shown in the Condensed Consolidating Statements of Cash Flows $ 8 $ - $ 20 $ 2,709 $ - $ 2,737 Cash (paid) received during the year ended December 31, 2017 for: Interest: Third party $ ( 948) $ - $ ( 48) $ ( 286) $ - $ ( 1,282) Intercompany - - ( 1) 1 - - Taxes: Income tax authorities $ ( 329) $ - $ - $ ( 215) $ - $ ( 544) Intercompany 614 - - ( 614) - - AMERICAN INTERNATIONAL GROUP, INC. (AS GUARANTOR) SUPPLEMENTARY DISCLOSURE OF NON-CASH ACTIVITIES: Years Ended December 31, (in millions) 2019 2018 2017 Intercompany non-cash financing and investing activities: Capital contributions $ 15 $ 2,369 $ 259 Dividends received in the form of securities 702 745 735 Return of capital 15 2,706 26 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 26. Subsequent Events DIVIDENDS DECLARED On February 12, 2020, our Board of Directors declared a cash dividend on AIG Common Stock of $ 0.32 per share, payable on March 30, 2020 to shareholders of record on March 16, 2020. On February 12, 2020, our Board of Directors declared a cash dividend on AIG’s Series A Preferred Stock of $ 365.625 per share, payable on March 16, 2020 to holders of record on February 28, 2020. |
Schedule I Summary of Investmen
Schedule I Summary of Investments - Other than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 which shown in (in millions) Cost (a) Fair Value the Balance Sheet Fixed maturities: U.S. government and government sponsored entities $ 7,229 $ 7,501 $ 7,501 Obligations of states, municipalities and political subdivisions 13,960 15,318 15,318 Non-U.S. governments 14,042 14,869 14,869 Public utilities 17,861 19,378 19,378 All other corporate debt securities 120,203 130,276 130,276 Mortgage-backed, asset-backed and collateralized 66,617 70,426 70,426 Total fixed maturity securities 239,912 257,768 257,768 Equity securities and mutual funds: Common stock: Public utilities 1 1 1 Banks, trust and insurance companies 151 151 151 Industrial, miscellaneous and all other 380 380 380 Total common stock 532 532 532 Preferred stock 13 13 13 Mutual funds 296 296 296 Total equity securities and mutual funds 841 841 841 Mortgage and other loans receivable, net of allowance 46,984 49,005 46,984 Other invested assets 19,495 18,792 18,792 Short-term investments, at cost (approximates fair value) 13,230 13,230 13,230 Derivative assets (b) 793 793 793 Total investments $ 321,255 $ 340,429 $ 338,408 (a) Original cost of fixed maturities is reduced by other-than-temporary impairment charges and by repayments and adjusted for amortization of premiums or accretion 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, 2019 | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTADING DEBT | |
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) 2019 2018 Assets: Short-term investments (a) $ 3,329 $ 1,141 Other investments 4,804 3,377 Total investments 8,133 4,518 Cash 2 2 Loans to subsidiaries (b) 35,352 34,963 Due from affiliates - net (b) 1,504 1,206 Intercompany tax receivable (b) 3,121 3,053 Deferred income taxes 9,426 10,747 Investment in consolidated subsidiaries (b) 39,921 33,300 Other assets (c) 340 383 Total assets $ 97,799 $ 88,172 Liabilities: Due to affiliate (b) $ 3,231 $ 2,329 Intercompany tax payable (b) 2,700 2,954 Notes and bonds payable 20,467 20,853 Junior subordinated debt 1,542 1,548 Series AIGFP matched notes and bonds payable 21 21 Loans from subsidiaries (b) 715 615 Other liabilities (includes intercompany derivative liabilities of $ 33 in 2019 and $ 105 in 2018) 3,448 3,491 Total liabilities 32,124 31,811 AIG Shareholders’ equity: Preferred stock 485 - Common stock 4,766 4,766 Treasury stock ( 48,987) ( 49,144) Additional paid-in capital 81,345 81,268 Retained earnings 23,084 20,884 Accumulated other comprehensive income (loss) 4,982 ( 1,413) Total AIG shareholders’ equity 65,675 56,361 Total liabilities and equity $ 97,799 $ 88,172 (a) At December 31, 2019 and 2018, included restricted cash of $ 102 million and $ 124 million, respectively. (b) Eliminated in consolidation. (c) At December 31, 2019 and 2018, included restricted cash of $ 1 million and $ 1 million, respectively. 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) 2019 2018 2017 Revenues: Equity in undistributed net income (loss) of consolidated subsidiaries (a) $ 44 $ ( 5,160) $ ( 2,375) Dividend income from consolidated subsidiaries (a) 3,819 4,580 2,226 Interest income (b) 1,034 961 656 Net realized capital gains (losses) ( 3) ( 49) 46 Other income 125 26 189 Expenses: Interest expense 985 954 949 Net loss on extinguishment of debt - - 2 Net loss on sale of divested businesses 1 3 30 Other expenses 728 800 922 Income (loss) from continuing operations before income tax expense (benefit) 3,305 ( 1,399) ( 1,161) Income tax expense (benefit) ( 45) ( 1,433) 4,922 Net income (loss) 3,350 34 ( 6,083) Loss from discontinued operations ( 2) ( 40) ( 1) Net income (loss) attributable to AIG Parent Company $ 3,348 $ ( 6) $ ( 6,084) (a) Eliminated in consolidation. (b) Includes interest income on intercompany borrowings of $ 904 million, $ 840 million and $ 512 million on December 31, 2019, 2018 and 2017, respectively, eliminated in consolidation. See accompanying Notes to Condensed Financial Information of Registrant. Condensed Financial Information of Registrant (Continued) Statements of Comprehensive Income — Parent Company Only Schedule II Years Ended December 31, (in millions) 2019 2018 2017 Net income (loss) $ 3,348 $ ( 6) $ ( 6,084) Other comprehensive income (loss) 6,395 ( 6,302) 2,235 Total comprehensive income (loss) attributable to AIG $ 9,743 $ ( 6,308) $ ( 3,849) 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) 2019 2018 2017 Net cash provided by operating activities $ 3,484 $ 1,256 $ 36 Cash flows from investing activities: Sales and maturities of investments 2,313 5,587 5,714 Sales of divested businesses - - 40 Purchase of investments ( 2,957) ( 1,980) ( 2,465) Net change in short-term investments ( 2,170) 1,533 1,994 Contributions from (to) subsidiaries - net ( 237) 1 2,446 Acquisition of businesses - ( 5,475) - Payments received on mortgage and other loans receivable - - 107 Loans to subsidiaries - net 513 868 199 Other, net 67 ( 73) ( 183) Net cash provided by (used in) investing activities ( 2,471) 461 7,852 Cash flows from financing activities: Issuance of long-term debt 595 2,470 1,505 Repayments of long-term debt ( 1,006) ( 1,493) ( 1,724) Issuance of preferred stock 485 - - Cash dividends paid on preferred stock ( 22) - - Cash dividends paid on common stock ( 1,114) ( 1,138) ( 1,172) Loans from subsidiaries - net 93 90 ( 63) Purchase of common stock - ( 1,739) ( 6,275) Other, net ( 66) 212 ( 154) Net cash used in financing activities ( 1,035) ( 1,598) ( 7,883) Change in cash and restricted cash ( 22) 119 5 Cash and restricted cash at beginning of year 127 8 3 Cash and restricted cash at end of year $ 105 $ 127 $ 8 Supplementary disclosure of cash flow information: Years Ended December 31, (in millions) 2019 2018 2017 Cash $ 2 $ 2 $ 3 Restricted cash included in Short-term investments 102 124 4 Restricted cash included in Other assets 1 1 1 Total cash and restricted cash shown in Statements of Cash Flows — Parent Company Only $ 105 $ 127 $ 8 Cash (paid) received during the period for: Interest: Third party $ ( 941) $ ( 914) $ ( 948) Intercompany ( 3) 1 - Taxes: Income tax authorities ( 11) ( 32) ( 329) Intercompany 1,179 895 614 Intercompany non-cash financing and investing activities: Capital contributions 15 2,369 259 Return of capital 15 2,706 26 Dividends received in the form of securities 702 745 735 See accompanying Notes to Condensed Financial Information of Registrant. 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 2019 Annual Report on Form 10-K for the year ended December 31, 2019 (Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 21, 2020. 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 16 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. For additional information see Note 23 to the Consolidated Financial Statements. 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, 2019 | |
Schedule III Supplementary Insurance Information | |
Schedule III Supplementary Insurance Information | Supplementary Insurance Information Schedule III At December 31, 2019 and 2018 Liability for Unpaid Losses and Loss Deferred Adjustment Policy Policy Expenses, and Acquisition Future Policy Unearned Contract Segment (in millions) Costs Benefits Premiums Claims 2019 General Insurance $ 2,639 $ 71,272 $ 18,022 $ - Life and Retirement 7,901 17,963 - 864 Other Operations (a) 9 177 10 - Legacy Operations 658 39,428 237 17 $ 11,207 $ 128,840 $ 18,269 $ 881 2018 General Insurance $ 2,889 $ 76,185 $ 18,727 $ - Life and Retirement 9,046 14,739 - 851 Other Operations (a) - 47 6 - Legacy Operations 759 37,603 515 14 $ 12,694 $ 128,574 $ 19,248 $ 865 For the years ended December 31, 2019, 2018 and 2017 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) 2019 General Insurance $ 26,438 $ 3,444 $ 17,246 $ 4,482 $ 4,621 $ 25,092 Life and Retirement 6,493 8,461 9,127 650 2,472 - Other Operations (a) 42 234 739 ( 36) 1,138 420 Legacy Operations 603 2,480 2,122 68 306 ( 58) $ 33,576 $ 14,619 $ 29,234 $ 5,164 $ 8,537 $ 25,454 2018 General Insurance $ 27,505 $ 2,668 $ 20,824 $ 4,596 $ 5,222 $ 26,407 Life and Retirement 5,261 7,922 7,692 680 2,412 - Other Operations (a) 39 ( 439) 357 5 1,270 387 Legacy Operations 600 2,325 2,293 105 398 3 $ 33,405 $ 12,476 $ 31,166 $ 5,386 $ 9,302 $ 26,797 2017 General Insurance $ 26,026 $ 3,668 $ 21,642 $ 3,765 $ 5,100 $ 25,438 Life and Retirement 6,844 7,816 8,607 743 2,296 - Other Operations (a) 712 ( 81) 1,076 ( 296) 1,227 317 Legacy Operations 727 2,776 2,239 76 484 4 $ 34,309 $ 14,179 $ 33,564 $ 4,288 $ 9,107 $ 25,759 (a) Includes consolidation and elimination entries and reconciling items from adjusted pre-tax income to pre-tax income. See Note 3 to the Consolidated Financial Statements. (b) Balances reflect the segment changes discussed in Note 3 to the Consolidated Financial Statements. |
Schedule IV Reinsurance
Schedule IV Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Schedule IV Reinsurance | |
Schedule IV Reinsurance | Reinsurance Schedule IV At December 31, 2019, 2018 and 2017 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 2019 Long-duration insurance in force $ 1,185,771 $ 264,732 $ 279 $ 921,318 - % Premiums Earned: General Insurance companies $ 30,017 $ 9,526 $ 6,395 $ 26,886 23.8 % Life and Retirement companies 4,363 916 228 3,675 6.2 Other - - - - - Total $ 34,380 $ 10,442 $ 6,623 $ 30,561 21.7 % 2018 Long-duration insurance in force $ 1,094,774 $ 228,846 $ 300 $ 866,228 - % Premiums Earned: General Insurance companies $ 31,450 $ 8,164 $ 4,638 $ 27,924 16.6 % Life and Retirement companies 3,489 855 56 2,690 2.1 Other - - - - - Total $ 34,939 $ 9,019 $ 4,694 $ 30,614 15.3 % 2017 Long-duration insurance in force $ 1,061,095 $ 202,402 $ 321 $ 859,014 - % Premiums Earned: General Insurance companies $ 30,928 $ 7,904 $ 3,374 $ 26,398 12.8 % Life and Retirement companies 5,771 810 15 4,976 0.3 Other - - - - - Total $ 36,699 $ 8,714 $ 3,389 $ 31,374 10.8 % |
Schedule V Valuation and Qualif
Schedule V Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule V Valuation and Qualifying Accounts | Valuation and Qualifying Accounts Schedule V For the years ended December 31, 2019, 2018 and 2017 Balance, Charged to Beginning Costs and Divested Other Balance, (in millions) of year Expenses Charge Offs Acquisitions Businesses Changes * End of year 2019 Allowance for mortgage and other loans receivable $ 397 $ 46 $ ( 5) $ - $ - $ - $ 438 Allowance for premiums and insurances balances receivable 216 ( 25) ( 23) - - 10 178 Allowance for reinsurance assets 140 ( 20) ( 11) - - 2 111 Federal and foreign valuation allowance for deferred tax assets 1,779 ( 44) - - - ( 310) 1,425 2018 Allowance for mortgage and other loans receivable $ 322 $ 93 $ ( 19) $ - $ - $ 1 $ 397 Allowance for premiums and insurances balances receivable 236 2 ( 20) - - ( 2) 216 Allowance for reinsurance assets 187 ( 8) ( 45) 8 - ( 2) 140 Federal and foreign valuation allowance for deferred tax assets 1,374 21 - 82 - 302 1,779 2017 Allowance for mortgage and other loans receivable $ 297 $ 49 $ ( 25) $ - $ - $ 1 $ 322 Allowance for premiums and insurances balances receivable 262 36 ( 58) - ( 8) 4 236 Allowance for reinsurance assets 207 33 ( 50) - - ( 3) 187 Federal and foreign valuation allowance for deferred tax assets 2,831 43 - - - ( 1,500) 1,374 * 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, 2019 | |
BASIS OF PRESENTATION | |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. 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: liability for unpaid losses and loss adjustment expenses (loss reserves); valuation of future policy benefit liabilities and timing and extent of loss recognition; valuation of liabilities for guaranteed benefit features of variable annuity products; valuation of embedded derivatives for fixed index annuity and life products; estimated gross profits to value deferred policy acquisition costs for investment-oriented products; reinsurance assets; impairment charges, including other-than-temporary impairments on available for sale securities, impairments on other invested assets, including investments in life settlements, allowances for loan losses, and goodwill impairment; liability for legal contingencies; fair value measurements of certain financial assets and liabilities; and 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 and estimates associated with the Tax Act. These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected. Out of Period Adjustments |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Held-for-Sale Classification | We report and classify a business as held-for-sale (Held-For-Sale Business) 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 Held-For-Sale Business 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 Held-For-Sale Business are reported in Other assets and Other liabilities, respectively, in our Consolidated Balance Sheets beginning in the period in which the business is classified as held-for-sale. |
Investments | Short-term investments Short-term investments include highly liquid securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. Securities included within short-term investments are stated at estimated fair value, while other investments included within short-term investments are stated at amortized cost, which approximates estimated fair value. In the first quarter of 2019, we began reporting investment income from our non-insurance subsidiaries in Net investment income instead of Other income on a prospective basis to be consistent with how we report investment income from our General Insurance and Life and Retirement reporting segments. This reclassification has no impact to our consolidated statements of operations. 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, 2019 or 2018. On January 1, 2018, AIG adopted ASU 2016-01, the Financial Instruments Recognition and Measurement standard for equity securities which eliminates the available for sale classification and treatment for equity securities. As a result, equity securities that do not follow the equity method of accounting, are measured at fair value with changes in fair value recognized in net investment income. Prior to the adoption of this standard, unrealized gains and losses from available for sale investments in fixed maturity and equity securities carried at fair value were reported as a separate component of Accumulated other comprehensive income, net of deferred policy acquisition costs and deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity and equity securities measured at fair value at our election are reflected in Net investment income (for insurance subsidiaries) or Other income (for Other Operations). Investments in fixed maturity and equity securities are recorded on a trade-date basis. Premiums and discounts arising from the purchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain RMBS, CMBS and CDO/ABS, (collectively, structured securities), recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that are not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For purchased credit impaired (PCI) securities, at acquisition, the difference between the undiscounted expected future cash flows and the recorded investment in the securities represents the initial accretable yield, which is to be accreted into net investment income over the securities’ remaining lives on an effective level-yield basis. Subsequently, effective yields recognized on PCI securities are recalculated and adjusted prospectively to reflect changes in the contractual benchmark interest rates on variable rate securities and any significant increases in undiscounted expected future cash flows arising due to reasons other than interest rate changes. Other Invested Assets Carried at Fair Value Certain hedge funds, private equity funds, 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. Prior to 2019, for the investments of AIG’s Other Operations, such changes were reported in Other income. Prior to January 1, 2018, 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 were reported at fair value with changes in fair value recognized as a component of Accumulated other comprehensive income. These investments were subject to other-than-temporary impairment evaluations. The gross unrealized loss recorded in Accumulated other comprehensive income on such investments was $ 45 million at December 31, 2017, the majority of which pertained to investments in private equity funds and hedge funds that have been in continuous unrealized loss positions for less than 12 months. Effective January 1, 2018, upon the adoption of the Financial Instruments Recognition and Measurement standard, these investments are no longer accounted for as available for sale securities. The new standard requires these investments to be measured at fair value with the change in fair value recognized in earnings. As a result, beginning in 2018, these investments are no longer subject to the other-than-temporary impairment evaluation. 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. Prior to 2019, for the investments of AIG’s Other Operations, such changes were 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. Hedge funds are reported as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag. The financial statements of these investees are generally audited annually. Other Investments Also included in Other invested assets are real estate held for investment. These investments are reported at cost, less depreciation and are subject to impairment review, as discussed below. Investments in Life Settlements Investments in life settlements were accounted for under the investment method. Under the investment method, we recognized our initial investment in life settlements at the transaction price plus all initial direct external costs. Continuing costs to keep the policy in force, primarily life insurance premiums, increased the carrying amount of the investment. We recognized income on individual investments in life settlements upon the death of the insured, at an amount equal to the excess of the investment proceeds over the carrying amount of the investment at that time. These investments were subject to impairment review, as discussed below. Net Investment Income Net investment income represents income primarily from the following sources: Interest income and related expenses, including amortization of premiums and accretion of discounts 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 stocks. Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option. Earnings from alternative investments. The difference between the carrying amount of an investment in life settlements and the life insurance proceeds of the underlying life insurance policy recorded in income upon the death of the insured. 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 redemptions 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 securities and certain other invested assets for other-than-temporary impairments. Impairments on investments in life settlements. Changes in fair value of derivatives except for those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized capital gains (losses). Exchange gains and losses resulting from foreign currency transactions. Evaluating Investments for Other-Than-Temporary Impairments Fixed Maturity Securities If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, an other-than-temporary impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized capital losses. When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. For fixed maturity securities for which a credit impairment has occurred, the amortized cost is written down to the estimated recoverable value with a corresponding charge to realized capital losses. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not related to a credit impairment is presented in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized (a separate component of accumulated other comprehensive income). When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class: Current delinquency rates; Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Expected prepayment speeds. For corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers the fair value as the recoverable value when available information does not indicate that another value is more relevant or reliable. When management identifies information that supports a recoverable value other than the fair value, the determination of a recoverable value considers scenarios specific to the issuer and the security, and may be based upon estimates of outcomes of corporate restructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets. We consider severe price declines in our assessment of potential credit impairments. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. In periods subsequent to the recognition of an other-than-temporary impairment charge for available for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and the expected undiscounted recoverable value over the remaining expected holding period of the security. Credit Impairments The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities: Years Ended December 31, (in millions) 2019 2018 2017 Balance, beginning of year $ - $ 526 $ 1,098 Increases due to: Credit impairments on new securities subject to impairment losses 136 59 122 Additional credit impairments on previously impaired securities 17 90 74 Reductions due to: Credit impaired securities fully disposed for which there was no prior intent or requirement to sell ( 64) ( 145) ( 99) Accretion on securities previously impaired due to credit * ( 20) ( 530) ( 669) Balance, end of year $ 69 $ - $ 526 * 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 On January 1, 2018, AIG adopted the Financial Instruments Recognition and Measurement standard for equity securities. The standard required equity securities to be measured at fair value with changes in fair value recognized in earnings each reporting period. As a result of the standard, equity securities with readily determinable fair values were no longer required to be evaluated for other-than-temporary-impairment. Prior to the adoption of the Recognition and Measurement standard on January 1, 2018, we evaluated our available for sale equity securities for impairment by considering such securities as candidates for other-than-temporary impairment if they had met any of the following criteria: The security had traded at a significant ( 25 percent or more) discount to cost for an extended period of time ( nine A discrete credit event had occurred resulting in (i) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under the bankruptcy laws or any similar laws intended for court-supervised reorganization of insolvent enterprises; or (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than the par value of their claims; or We had 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 was other-than-temporarily impaired required the judgment of management and consideration of the fundamental condition of the issuer, its near-term prospects and all the relevant facts and circumstances. In addition to the above criteria, all equity securities that have been in a continuous decline in value below cost over 12 months are impaired. We also considered 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 method investments in private equity funds, hedge funds and other entities are evaluated for impairment each reporting period. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investments and specific inherent risks. Such risks may evolve based on the nature of the underlying investments. Our investments in life settlements were monitored for impairment on a contract-by-contract basis quarterly. An investment in life settlements was considered impaired if the undiscounted cash flows resulting from the expected proceeds would not be sufficient to recover our estimated future carrying amount, which was the current carrying amount for the investment in life settlements plus anticipated undiscounted future premiums and other capitalizable future costs, if any. Impaired investments in life settlements were written down to their estimated fair value which was determined on a discounted cash flow basis, incorporating current market mortality assumptions and market yields or by repricing to the anticipated sale price as appropriate. In general, fair value estimates for the investments in life settlements were calculated using cash flows based on medical underwriting ratings of the policies from a third-party underwriter, applied to an industry mortality table. Our mortality assumptions were based on an industry table as supplemented with proprietary data on the older age mortality of U.S. insured lives. Mortality improvement factors were 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 were used in our estimate of future net cash flows from the investments in life settlements. We sold the remaining portion of our life settlements portfolio in 2017. Our investments in aircraft assets and real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compare expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings. We sold the remaining portion of our aircraft assets in 2018. Purchased Credit Impaired (PCI) Securities We purchase certain RMBS securities that have experienced deterioration in credit quality since their issuance. We determine whether it is probable at acquisition that we will not collect all contractually required payments for these PCI securities, including both principal and interest. At acquisition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security is determined based on our best estimate using key assumptions, such as interest rates, default rates and prepayment speeds. At acquisition, the difference between the undiscounted expected future cash flows of the PCI securities and the recorded investment in the securities represents the initial accretable yield, which is accreted into Net investment income over their remaining lives on an effective yield basis. Additionally, the difference between the contractually required payments on the PCI securities and the undiscounted expected future cash flows represents the non-accretable difference at acquisition. The accretable yield and the non-accretable difference will change over time, based on actual payments received and changes in estimates of undiscounted expected future cash flows, which are discussed further below. On a quarterly basis, the undiscounted expected future cash flows associated with PCI securities are re-evaluated based on updates to key assumptions. Declines in undiscounted expected future cash flows due to further credit deterioration as well as changes in the expected timing of the cash flows can result in the recognition of an other-than-temporary impairment charge, as PCI securities are subject to our policy for evaluating investments for other-than-temporary impairment. Changes to undiscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI securities will change the accretable yield prospectively. Significant increases in undiscounted expected future cash flows for reasons other than interest rate changes are recognized prospectively as adjustments to the accretable yield. 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. Pledged collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the amounts borrowed during the life of the transactions. In the event of a decline in the fair value of the pledged collateral under these secured financing transactions, we may be required to transfer cash or additional securities as pledged collateral under these agreements. At the termination of the transactions, we and our counterparties are obligated to return the amounts borrowed and the securities transferred, respectively. 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 the 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 principal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned. Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method. Premiums and discounts on purchased residential mortgages are also amortized to income as an adjustment to earnings using the interest method. Life insurance policy loans 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 policy. Methodology 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 not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. Impairment of commercial mortgages is typically determined using the fair value of collateral while impairment of other loans is typically determined using the present value of cash flows or the loan’s observable market price. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on statistical models primarily driven by past due status, debt service 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 uncollectible, the uncollectible portion of the carrying 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 recorded 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 mortgages in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan. |
Reinsurance | In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. In addition, our general insurance subsidiaries assume reinsurance from other insurance companies. We determine the portion of the incurred but not reported (IBNR) loss that will be recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss adjustment expenses incurred, ceded unearned premiums and ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for doubtful accounts requires judgment for which key inputs typically include historical trends regarding uncollectible balances, disputes and credit events as well as specific reviews of balances in dispute or subject to credit impairment. The allowance for doubtful accounts on reinsurance assets was $ 111 million and $ 140 million at December 31, 2019 and 2018, respectively. Changes in the allowance for doubtful accounts on reinsurance assets are reflected in Policyholder benefits and losses incurred within the Consolidated Statements of Income. 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 over the contract period in proportion to the protection received. Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of Reinsurance assets. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsurers. Any subsequent differences arising on such estimates are recorded in the periods in which they are determined. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premiums. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsureds. Any subsequent differences arising on such estimates are recorded in the periods in which they are determined. For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. The following table presents short-duration insurance premiums written and earned: Retroactive reinsurance agreements are reinsurance agreements under which our reinsurer agrees to reimburse us as a result of past insurable events. For these agreements, the excess of the amounts ultimately collectible under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves. The amount of the deferral is recalculated each period based on loss payments and updated estimates. If the consideration paid exceeds the ultimate losses collectible under the agreement, the net loss on the agreement is recognized in income immediately. Ceded loss reserves under retroactive agreements were $ 13.9 billion and $ 13.8 billion, and the deferred gain liability was $ 1.8 billion and $ 1.8 billion, as of December 31, 2019 and 2018, respectively. The effect on income from amortization of the deferred gain was $ 219 million, $ 394 million and $ 316 million for the years ended December 31, 2019, 2018 and 2017, respectively. Long-Duration Reinsurance Long-duration reinsurance is effected principally under yearly renewable term treaties. The premiums with respect to these treaties are earned over the contract period in proportion to the protection provided. Amounts recoverable from reinsurers on long-duration contracts are estimated in a manner consistent with the assumptions used for the underlying policy benefits and are presented as a component of Reinsurance assets. |
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 consolidate a VIE, we evaluate the design of the VIE as well as the related risks the entity was designed to expose the variable interest holders to. The primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE. Balance Sheet Classification and Exposure to Loss |
Deferred Policy Acquisition Costs | Deferred policy acquisition costs (DAC) represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such deferred policy acquisition costs generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analyzed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts. We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates. Short-duration insurance contracts: Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, generally 12 months. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC. We assess the recoverability of DAC on an annual basis or more frequently if circumstances indicate an impairment may have occurred. This assessment is performed by comparing recorded net unearned premiums and anticipated investment income on in-force business to the sum of expected losses and loss adjustment expenses incurred, unamortized DAC and maintenance costs. If the sum of these costs exceeds the amount of recorded net unearned premiums and anticipated investment income, the excess is recognized as an offset against the asset established for DAC. This offset is referred to as a premium deficiency charge. Increases in expected losses and loss adjustment expenses incurred can have a significant impact on the likelihood and amount of a premium deficiency charge. Long-duration insurance contracts: Policy acquisition costs for participating life, traditional life and accident and health insurance products are generally deferred and amortized, with interest, over the premium paying period. The assumptions used to calculate the benefit liabilities and DAC for these traditional products are set when a policy is issued and do not change with changes in actual experience, unless a loss recognition event occurs. These “locked-in” assumptions include mortality, morbidity, persistency, maintenance expenses and investment returns, and include margins for adverse deviation to reflect uncertainty given that actual experience might deviate from these assumptions. A loss recognition event occurs when there is a shortfall between the carrying 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: Certain policy acquisition costs and policy issuance costs related to universal life and investment-type products (collectively, investment-oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts. DAC on investment-oriented contracts were approximately $ 6.1 billion and $ 7.5 billion at December 31, 2019 and 2018, respectively. Estimated gross profits are affected by a number of factors, including levels of current and expected interest rates, net investment income and spreads, net realized capital gains and losses, fees, surrender rates, mortality experience, policyholder behavior experience and equity market returns and volatility. In each reporting period, current period amortization expense is adjusted to reflect actual gross profits. If estimated gross profits change significantly, DAC is recalculated using the new assumptions, and any resulting adjustment is included in income. If the new assumptions indicate that future estimated gross profits are higher than previously estimated, DAC will be increased resulting in a decrease in amortization expense and increase in income in the current period; if future estimated gross profits are lower than previously estimated, DAC will be decreased resulting in an increase in amortization expense and decrease in income in the current period. Updating such assumptions may result in acceleration of amortization in some products and deceleration of amortization in other products. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts. To estimate future estimated gross profits for variable annuity products, a long-term annual asset growth assumption is applied to determine the future growth in assets and related asset-based fees. In determining the asset growth rate, the effect of short-term fluctuations in the equity markets is partially mitigated through the use of a “reversion to the mean” methodology whereby short-term asset growth above or below long-term annual rate assumptions impacts the growth assumption applied to the five-year period subsequent to the current balance sheet date. The reversion to the mean methodology allows us to maintain our long-term growth assumptions, while also giving consideration to the effect of actual investment performance. When actual performance significantly deviates from the annual long-term growth assumption, as evidenced by growth assumptions in the five-year reversion to the mean period falling below a certain rate (floor) or rising above a certain rate (cap) for a sustained period, judgment may be applied to revise or “unlock” the growth rate assumptions to be used for both the five-year reversion to the mean period as well as the long-term annual growth assumption applied to subsequent periods. Shadow DAC and Shadow Loss Recognition: DAC related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity securities available for sale and prior to 2018, equity securities at fair value on estimated gross profits, with related changes recognized through Other comprehensive income (shadow DAC). The adjustment is made at each balance sheet date, as if the securities had been sold at their stated aggregate fair value and the proceeds reinvested at current yields. Similarly, for long-duration traditional insurance contracts, if the assets supporting the liabilities are in a net unrealized gain position at the balance sheet date, loss recognition testing assumptions are updated to exclude such gains from future cash flows by reflecting the impact of reinvestment rates on future yields. If a future loss is anticipated under this basis, any additional shortfall indicated by loss recognition tests is recognized as a reduction in accumulated other comprehensive income (shadow loss recognition). Similar to other loss recognition on long-duration insurance contracts, such shortfall is first reflected as a reduction in DAC and secondly as an increase in liabilities for future policy benefits. The change in these adjustments, net of tax, is included with the change in net unrealized appreciation of investments that is credited or charged directly to Other comprehensive income. Internal Replacements of Long-duration and Investment-oriented Products: For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If the modification does not substantially change the contract, we do not change the accounting and amortization of existing DAC and related actuarial balances. If an internal replacement represents a substantial change, the original contract is considered to be extinguished and any related DAC or other policy balances are charged or credited to income, and any new deferrable costs associated with the replacement contract are deferred. Value of Business Acquired (VOBA) is determined at the time of acquisition and is reported in the Consolidated Balance Sheets with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For participating life, traditional life and accident and health insurance products, VOBA is amortized over the life of the business in a manner similar to that for DAC based on the assumptions at purchase. For investment-oriented products, VOBA is amortized in relation to estimated gross profits and adjusted for the effect of unrealized gains or losses on fixed maturity securities available for sale and prior to 2018, equity securities at fair value in a manner similar to DAC. The following table presents a rollforward of DAC and VOBA: |
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 swaps) are used to economically mitigate risk associated with non-U.S. dollar denominated debt, net capital exposures, foreign currency transactions, and foreign denominated investments. Equity derivatives are used to mitigate financial risk embedded in certain insurance liabilities and economically hedge certain investments. We use credit derivatives to manage our credit exposures. The derivatives are effective economic hedges of the exposures that they are meant to offset. In addition to hedging activities, we also enter into derivative instruments with respect to investment operations, which 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 swaps, 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 Consolidated Balance Sheets only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty. Cash collateral posted with counterparties in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset. Derivatives, with the exception of embedded derivatives, are reported at fair value in the Consolidated Balance Sheets in Other assets and Other liabilities. Embedded derivatives are generally presented with the host contract in the Consolidated Balance 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 for that instrument. For additional information on embedded derivatives see Notes 6 and 15 herein. The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Consolidated Balance Sheets: |
Liability for unpaid claims and claims adjustment expense | Liability for Unpaid Losses and Loss Adjustment Expenses (Loss Reserves) Loss reserves represent the accumulation of estimates of unpaid claims, including estimates for IBNR claims, less applicable discount. We regularly review and update the methods used to determine loss reserve estimates. Any adjustments resulting from this review are reflected currently in pre-tax income. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be recognized and confirmed. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as favorable development. |
Future policy benefits for life and accident and health insurance contracts and policyholder contract deposits | Future Policy Benefits Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements whereby a claimant has agreed to settle a general insurance claim in exchange for fixed payments over a fixed determinable period of time with a life contingency feature. In addition, reserves for contracts in loss recognition are adjusted to reflect the effect of unrealized gains on fixed maturity securities available for sale and prior to 2018, equity securities at fair value, with related changes recognized through Other comprehensive income. Future policy benefits also include certain guaranteed benefits of variable annuity products that are not considered embedded derivatives, primarily guaranteed minimum death benefits. For additional information on guaranteed minimum death benefits see Note 15 herein. The liability for long-duration future policy benefits has been established including assumptions for interest rates which vary by year of issuance and product, and range from approximately 0.2 percent to 14.6 percent. Mortality and surrender rate assumptions are generally based on actual experience when the liability is established. Policyholder Contract Deposits The liability for Policyholder contract deposits is primarily recorded at accumulated value (deposits received and net transfers from separate accounts, plus accrued interest credited at rates ranging from 0.3 percent to 10.0 percent at December 31, 2019, less withdrawals and assessed fees). Deposits collected on investment-oriented products are not reflected as revenues, because they are recorded directly to Policyholder contract deposits upon receipt. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenues. In addition to liabilities for universal life, fixed annuities, fixed options within variable annuities, annuities without life contingencies, funding agreements and GICs, policyholder contract deposits also include our liability for (a) certain guaranteed benefits and indexed features accounted for as embedded derivatives at fair value, (b) annuities issued in a structured settlement arrangement with no life contingency and (c) certain contracts we have elected to account for at fair value. For additional information on guaranteed benefits accounted for as embedded derivatives see Note 15 herein. 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 are 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 assessments over the life of the contract. For universal life policies without secondary guarantees, for which profits followed by losses are first expected after contract inception, we establish 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 Policyholder contract deposits in the Consolidated Balance Sheet. These additional liabilities are also adjusted to reflect the effect of unrealized gains or losses on fixed maturity securities available for sale and prior to 2018, equity securities at fair value on accumulated assessments, with related changes recognized through Other comprehensive income. The policyholder behavior assumptions for these liabilities include mortality, lapses and premium persistency. The capital market assumptions used for the liability for universal life secondary guarantees include discount rates and net earned rates. 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. URR for investment-oriented contracts are generally deferred and amortized, with interest, in relation to the incidence of estimated gross profits (EGPs) to be realized over the estimated lives of the contracts and are subject to the same adjustments due to changes in the assumptions underlying EGPs as DAC. Amortization of URR is recorded in Policy fees. Similar to shadow DAC, URR related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity securities available for sale and also, prior to 2018, equity securities at fair value on estimated gross profits, with related changes recognized through Other comprehensive income (shadow URR). 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 1.3 percent of gross insurance in force at December 31, 2019 and 1.8 percent of gross domestic premiums and other considerations in 2019. The amount of annual dividends to be paid is approved locally by the boards of directors of the Life and Retirement companies. Provisions for future dividend payments are computed by jurisdiction, reflecting local regulations. The portions of current and prior net income and of current unrealized appreciation of investments that can inure to our benefit are restricted in some cases by the insurance contracts and by the local insurance regulations of the jurisdictions in which the policies are in force. Certain products are subject to experience adjustments. These include group life and group medical products, credit life contracts, accident and health insurance contracts/riders attached to life policies and, to a limited extent, reinsurance agreements with other direct insurers. Ultimate premiums from these contracts are estimated and recognized as revenue with the unearned portions of the premiums recorded as liabilities in Other policyholder funds. Experience adjustments vary according to the type of contract and the territory in which the policy is in force and are subject to local regulatory guidance. |
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. |
Noncontrolling Interests | Non-redeemable noncontrolling interest is the portion of equity (net assets) and net income (loss) in a subsidiary not attributable, directly or indirectly, to AIG. |
Earnings Per Share | The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The diluted EPS computation is based on those shares used in the basic EPS computation plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits. |
Income Taxes | Assessment of Deferred Tax Asset Valuation Allowance The evaluation of the recoverability of 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, frequency, and amount of cumulative financial reporting income and losses in recent years; the sustainability of recent operating profitability of our subsidiaries; the predictability of future operating profitability of the character necessary to realize the net deferred tax asset, including forecasts of future income for each of our businesses and actual and planned business and operational changes; 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 that 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 operating 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 carryforward 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 offset by our 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, 2019, 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, including income generated from prudent and feasible actions and tax planning strategies and any changes to interpretations and assumptions related to the impact of the Tax Act 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. |
Revenues and expenses | Premiums for short-duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums written and earned on a pro rata basis over the term of the related coverage. In addition, certain miscellaneous income is included as premiums written and earned. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired terms of coverage. Reinsurance premiums are typically earned over the same period as the underlying policies or risks covered by the contract. As a result, the earnings pattern of a reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies throughout the year. Reinsurance premiums ceded under prospective reinsurance agreements 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. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsureds. Any subsequent differences that arise regarding such estimates are recorded in the periods in which they are determined. Premiums for long-duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued. Policy fees represent fees recognized from universal life and investment-type products consisting of policy charges for the cost of insurance, policy administration charges, surrender charges and amortization of unearned revenue reserves. 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, similar to DAC. Other income includes advisory fee income from the Life and Retirement broker dealer business. |
Cash | Cash represents cash on hand and demand deposits. |
Premiums and other receivables - net | Premiums and other receivables – net of allowance include premium balances receivable, amounts due from agents and brokers and policyholders, trade receivables for the Direct 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 doubtful accounts on premiums and other receivables was $ 178 million and $ 216 million at December 31, 2019 and 2018, respectively. |
Deposit assets and liabilities | Deposit assets and liabilities: We have entered into certain insurance and reinsurance contracts, primarily in our General Insurance companies, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. When we receive premiums on such contracts, the premiums received, 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. When we pay premiums on such contracts, the premiums paid are recorded as deposits within Other assets in the Consolidated Balance Sheets. The deposit asset or liability is adjusted as amounts are paid, consistent with the underlying contracts. |
Other assets | Other assets consist of sales inducement assets, prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, restricted cash, derivative assets and assets of businesses classified as held-for-sale. We offer sales inducements which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. Such amounts are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC (see Note 10 herein) . To qualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception. We must also demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest, and are higher than the contract’s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets totaled $ 430 million and $ 752 million at December 31, 2019 and 2018, respectively. The amortization expense associated with these assets is reported within Interest credited to policyholder account balances in the Consolidated Statements of Income. Such amortization expense totaled $ 79 million, $ 156 million and $ 94 million for the years ended December 31, 2019, 2018 and 2017, respectively. The cost of buildings and furniture and equipment is depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and equipment). Expenditures for maintenance and repairs are charged to income as incurred and expenditures for improvements are capitalized and depreciated. We periodically assess the carrying amount of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized using the straight-line method over a period generally not exceeding ten years. |
Goodwill | GOODWILL Effective July 1, 2019, we changed the date of our annual goodwill impairment testing from December 31 to July 1. This change does not represent a material change to our method of applying current accounting guidance and is preferable as it better aligns with our strategic planning and forecasting process. This change did not delay, accelerate or avoid any impairment charge and was applied prospectively. We performed our annual goodwill impairment tests of all reporting units using a combination of both qualitative and quantitative assessments and concluded that our goodwill was not impaired. Our goodwill balance was $ 4.0 billion at December 31, 2019. For further information on goodwill see Note 13 to the Consolidated Financial Statements. 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, 2019, the operating segments with goodwill are our General Insurance business – North America and International operating segments, our Life and Retirement business – Life Insurance operating segment and our Other Operations and Legacy Portfolio operating segments. When a business is transferred from one reporting unit to another, as occurred as part of the 2017 segment changes, 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. 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 fair 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 estimated 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 value 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. Effective July 1, 2019, we changed the date of our annual goodwill impairment testing from December 31 to July 1. This change does not represent a material change to our method of applying current accounting guidance and is preferable as it better aligns with our strategic planning and forecasting process. This change did not delay, accelerate or avoid any impairment charge and was applied prospectively. We performed our annual goodwill impairment tests of all reporting units using a combination of both qualitative and quantitative assessments and concluded that our goodwill was not impaired. The following table presents the changes in goodwill by operating segment: General Insurance North Life Other Legacy (in millions) America International Insurance Operations Portfolio Total Balance at January 1, 2017: Goodwill - gross $ 1,878 $ 2,807 $ 77 $ 27 $ 216 $ 5,005 Accumulated impairments ( 1,264) ( 2,136) - - ( 77) ( 3,477) Net goodwill 614 671 77 27 139 1,528 Increase (decrease) due to: Acquisitions - - - 4 - 4 Dispositions ( 10) ( 7) ( 6) - ( 2) ( 25) Other - 74 13 - - 87 Balance at December 31, 2017: Goodwill - gross 1,868 2,874 84 31 214 5,071 Accumulated impairments ( 1,264) ( 2,136) - - ( 77) ( 3,477) Net goodwill 604 738 84 31 137 1,594 Increase (decrease) due to: Acquisitions (a) 2,332 157 46 9 - 2,544 Other ( 12) ( 48) ( 5) 9 - ( 56) Balance at December 31, 2018: Goodwill - gross 4,188 2,983 125 49 214 7,559 Accumulated impairments ( 1,264) ( 2,136) - - ( 77) ( 3,477) Net goodwill 2,924 847 125 49 137 4,082 Increase (decrease) due to: Acquisitions - 20 - - - 20 Other (b) - 26 8 - ( 98) ( 64) Balance at December 31, 2019: Goodwill - gross 4,188 3,029 133 49 116 7,515 Accumulated impairments ( 1,264) ( 2,136) - - ( 77) ( 3,477) Net goodwill $ 2,924 $ 893 $ 133 $ 49 $ 39 $ 4,038 Indefinite lived intangible assets are not subject to amortization. Indefinite lived intangible assets primarily include Lloyd’s syndicate capacity and brand names. Finite lived intangible assets are amortized over their useful lives. Finite lived intangible assets primarily include distribution networks and are recorded net of accumulated amortization. The Company tests intangible assets for impairment on an annual basis or whenever events or circumstances suggest that the carrying value of an intangible asset may exceed the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If this condition exists and the carrying value of an intangible asset exceeds its fair value, the excess is recognized as an impairment and is recorded as a charge against net income. |
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 stable 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 15 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 (GMDB) or guaranteed minimum withdrawal benefits (GMWB) 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, derivative liabilities, deferred gains on retroactive reinsurance agreements and liabilities of businesses classified as held-for-sale. Also included in Other liabilities are trade payables for the DIB and GCM, which include option premiums received and payables to counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due to clearing brokers and exchanges. Trade payables for GCM also include cash collateral received from derivative counterparties that contractually cannot be netted against derivative assets. Securities sold but not yet purchased represent sales of securities not owned at the time of sale. The obligations arising from such transactions are recorded on a trade-date basis and carried at fair value. Fair values of securities sold but not yet purchased are based on current market prices. |
Foreign currency | Foreign currency: Financial statement accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in Total AIG shareholders’ equity. 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 remeasured 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. |
Accounting Standards Adopted | Accounting Standards Adopted During 2019 Leases In February 2016, the Financial Accounting Standards Board (FASB) issued an accounting standard that requires lessees with lease terms of more than 12 months 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. Lessor accounting remained largely the same, with the exception of certain specified changes. We adopted the standard on its effective date of January 1, 2019, using a modified retrospective approach and did not adjust prior comparative periods in accordance with the standard’s transition guidance. The majority of the Company’s lease obligations pertain to real estate utilized in the operation of our businesses. Consequently, the primary impact of adoption resulted in the recognition of discounted lease liabilities of $ 823 million and corresponding right-of-use assets of $ 724 million as of January 1, 2019 for operating leases pertaining to our real estate portfolio, which are reflected in Other Liabilities and Other Assets, respectively. The standard did not have a material effect on our reported consolidated financial condition, results of operations, cash flows or required disclosures. For additional information on our leases see Note 17 to the Consolidated Financial Statements. Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued an accounting standard that shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date. The standard does not require an accounting change for securities held at a discount, which continue to be amortized to maturity. We adopted the standard using a modified retrospective approach on its effective date of January 1, 2019. The standard did not have a material impact on our reported consolidated financial condition, results of operations, cash flows or required disclosures. Derivatives and Hedging In August 2017, the FASB issued an accounting standard that improves and expands hedge accounting for both financial and commodity risks. The provisions of the standard are intended to better align the accounting with an entity’s risk management activities, enhance the transparency on how the economic results are presented in the financial statements and disclosures, and simplify the application of hedge accounting treatment. We adopted the standard on its effective date of January 1, 2019. The standard did not have a material impact on our reported consolidated financial condition, results of operations, cash flows or required disclosures. |
Future Application of Accounting Standards | Future Application of Accounting Standards Financial Instruments - Credit Losses In June 2016, the FASB issued an accounting standard that will change how entities account for current expected credit losses (CECL) for most financial assets, premiums receivable, off-balance sheet exposures and reinsurance receivables. The standard requires an allowance for credit losses based on the expectation of lifetime credit losses related to such financial assets subject to credit losses, including loans measured at amortized cost, reinsurance receivables and certain off-balance sheet credit exposures. Additionally, the impairment of available-for-sale debt securities, including purchased credit deteriorated securities, is subject to the new guidance and will be measured in a similar manner, except that losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The standard will allow for reversals of credit impairments in the event that the credit of an issuer improves. The standard also requires additional disclosures. We adopted the standard on its effective date of January 1, 2020 using a modified retrospective method, which requires a cumulative effect adjustment to retained earnings. As of December 31, 2019, the impact of the adoption of the standard will be a reduction in opening retained earnings of approximately $ 650 million (pre-tax) primarily driven by commercial mortgage loans, and, to a lesser extent, reinsurance receivables and recoverables. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued an accounting standard that eliminates the requirement to calculate the implied fair value of goodwill, through a hypothetical purchase price allocation, to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value not to exceed the total amount of goodwill allocated to that reporting unit. An entity should also consider income tax effects from tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. We adopted the standard on its effective date of January 1, 2020. Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued an accounting standard update with the objective of making targeted improvements to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The standard prescribes significant and comprehensive changes to recognition, measurement, presentation and disclosure as summarized below: Requires the review and if necessary update of future policy benefit assumptions at least annually for traditional and limited pay long duration contracts, with the recognition and separate presentation of any resulting re-measurement gain or loss (except for discount rate changes as noted below) in the income statement. Requires the discount rate assumption to be updated at the end of each reporting period using an upper medium grade (low-credit risk) fixed income instrument yield that maximizes the use of observable market inputs and recognizes the impact of changes to discount rates in other comprehensive income. Simplifies the amortization of deferred policy acquisition costs (DAC) to a constant level basis over the expected term of the related contracts with adjustments for unexpected terminations, but no longer requires an impairment test. Requires the measurement of all market risk benefits associated with deposit (or account balance) contracts at fair value through the income statement with the exception of instrument-specific credit risk changes, which will be recognized in other comprehensive income. Increased disclosures of disaggregated roll-forwards of policy benefits, account balances, market risk benefits, separate account liabilities and information about significant inputs, judgments and methods used in measurement and changes thereto and impact of those changes. In October 2019, the FASB affirmed its decision to defer the effective date of the standard to January 1, 2022. We plan to adopt the standard on its updated effective date. We have started our implementation efforts and we are evaluating the method of adoption and impact of the standard on our reported consolidated financial condition, results of operations, cash flows and required disclosures. The adoption of this standard is expected to have a significant impact on our consolidated financial condition, results of operations, cash flows and required disclosures, as well as systems, processes and controls. Income Tax On December 18, 2019, the FASB issued guidance that simplifies the accounting for income taxes by eliminating certain exceptions to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The amendments also simplified other areas including the accounting for franchise taxes and enacted tax laws or rates, and clarified the accounting for transactions that result in the step-up in the tax basis of goodwill. The standard Is effective on January 1, 2021, with early adoption permitted. We are assessing the impact on our consolidated financial condition, results of operations and cash flows. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT INFORMATION | |
Schedule of continuing operations by operating segment | Net Adjusted Total Investment Interest Amortization Pre-tax (in millions) Revenues Income Expense of DAC Income (Loss) 2019 General Insurance North America $ 15,782 $ 2,929 $ - $ 2,008 $ 2,709 International 14,100 515 - 2,474 824 Total General Insurance 29,882 3,444 - 4,482 3,533 Life and Retirement Individual Retirement 5,654 4,133 77 449 1,984 Group Retirement 2,947 2,240 44 81 937 Life Insurance 4,352 1,203 26 115 246 Institutional Markets 2,912 885 11 5 291 Total Life and Retirement 15,865 8,461 158 650 3,458 Other Operations 845 370 1,246 16 ( 1,709) Legacy Portfolio 3,016 2,480 19 68 501 AIG Consolidation and elimination ( 691) ( 365) ( 53) - ( 305) Total AIG Consolidated adjusted revenues and adjusted pre-tax income $ 48,917 $ 14,390 $ 1,370 $ 5,216 $ 5,478 Reconciling items from adjusted pre-tax income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 228 228 - - 194 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) - - - ( 52) 56 Changes in the fair value of equity securities 158 158 - - 158 Professional fees related to regulatory or accounting changes - - - - ( 12) Other income (expense) - net 46 85 85 - - Loss on extinguishment of debt - - - - ( 32) Net realized capital gains (losses) * 388 ( 242) ( 38) - 448 Loss from divested businesses - - - - ( 75) Non-operating litigation reserves and settlements 9 - - - 2 Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - 267 Net loss reserve discount charge - - - - ( 955) Pension expense related to a one-time lump sum payment to former employees - - - - - Integration and transaction costs associated with acquired businesses - - - - ( 24) Restructuring and other costs - - - - ( 218) Revenues and Pre-tax income $ 49,746 $ 14,619 $ 1,417 $ 5,164 $ 5,287 2018 General Insurance North America $ 14,619 $ 2,305 $ - $ 1,859 $ ( 8) International 15,554 363 - 2,737 ( 461) Total General Insurance 30,173 2,668 - 4,596 ( 469) Life and Retirement Individual Retirement 5,338 3,827 82 630 1,681 Group Retirement 2,891 2,172 42 95 933 Life Insurance 4,007 1,137 25 ( 50) 330 Institutional Markets 1,900 786 13 5 246 Total Life and Retirement 14,136 7,922 162 680 3,190 Other Operations 636 45 1,066 10 ( 1,584) Legacy Portfolio 3,039 2,325 30 105 213 AIG Consolidation and elimination ( 171) ( 232) 85 - 59 Total AIG Consolidated adjusted revenues and adjusted pre-tax income $ 47,813 $ 12,728 $ 1,343 $ 5,391 $ 1,409 Reconciling items from adjusted pre-tax income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits ( 128) ( 128) - - ( 154) Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) - - - ( 5) 6 Changes in the fair value of equity securities - - - - - Professional fees related to regulatory or accounting changes - - - - - Other income (expense) - net ( 53) - - - - Loss on extinguishment of debt - - - - ( 7) Net realized capital losses * ( 254) ( 124) ( 34) - ( 193) Income from divested businesses - - - - 38 Non-operating litigation reserves and settlements 11 - - - ( 19) Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - ( 675) Net loss reserve discount benefit - - - - 371 Pension expense related to a one-time lump sum payment to former employees - - - - - Integration and transaction costs associated with acquired businesses - - - - ( 124) Restructuring and other costs - - - - ( 395) Revenues and Pre-tax income $ 47,389 $ 12,476 $ 1,309 $ 5,386 $ 257 2017 General Insurance North America $ 14,600 $ 3,145 $ 31 $ 1,305 $ ( 232) International 15,094 523 ( 9) 2,460 ( 581) Total General Insurance 29,694 3,668 22 3,765 ( 813) Life and Retirement Individual Retirement 5,514 4,013 58 415 2,289 Group Retirement 2,848 2,164 32 84 1,004 Life Insurance 4,056 1,044 13 239 274 Institutional Markets 3,168 595 6 5 264 Total Life and Retirement 15,586 7,816 109 743 3,831 Other Operations 1,413 53 968 ( 9) ( 1,405) Legacy Portfolio 4,391 2,776 122 76 1,470 AIG Consolidation and elimination ( 308) ( 280) ( 53) 4 75 Total AIG Consolidated adjusted revenues and adjusted pre-tax income $ 50,776 $ 14,033 $ 1,168 $ 4,579 $ 3,158 Reconciling items from adjusted pre-tax income to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 146 146 - - 146 Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) - - - ( 291) 303 Changes in the fair value of equity securities - - - - - Professional fees related to regulatory or accounting changes - - - - - Other income (expense) - net ( 49) - - - - Gain on extinguishment of debt - - - - 5 Net realized capital losses * ( 1,380) - - - ( 1,380) Income from divested businesses - - - - 68 Non-operating litigation reserves and settlements 27 - - - 129 Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - ( 303) Net loss reserve discount charge - - - - ( 187) Pension expense related to a one-time lump sum payment to former employees - - - - ( 60) Integration and transaction costs associated with acquired businesses - - - - - Restructuring and other costs - - - - ( 413) Revenues and Pre-tax income $ 49,520 $ 14,179 $ 1,168 $ 4,288 $ 1,466 * Includes all net realized capital gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication. |
Schedule of year-end identifiable assets and capital expenditures by legal entity | Year-End Identifiable Assets Capital Expenditures (in millions) 2019 2018 2019 2018 General Insurance companies $ 109,871 $ 110,007 $ 105 $ 171 Life and Retirement companies 280,721 247,219 104 94 Other 142,745 140,428 95 103 AIG Consolidation and Elimination ( 8,273) ( 5,670) - - Total Assets $ 525,064 $ 491,984 $ 304 $ 368 |
Schedule of entity's consolidated total revenues and real estate and other fixed assets by major geographic area | Real Estate and Other Fixed Assets, Total Revenues * Net of Accumulated Depreciation (in millions) 2019 2018 2017 2019 2018 2017 North America $ 36,862 $ 31,003 $ 34,149 $ 1,333 $ 1,479 $ 1,630 International 12,884 16,386 15,371 620 693 892 Consolidated $ 49,746 $ 47,389 $ 49,520 $ 1,953 $ 2,172 $ 2,522 * Revenues are generally reported according to the geographic location of the reporting unit. International revenues consists of revenues from our General Insurance International operating segment. |
HELD-FOR-SALE CLASSIFICATION (T
HELD-FOR-SALE CLASSIFICATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
HELD-FOR-SALE CLASSIFICATION | |
Summary of assets and liabilities held for sale | December 31, (in millions) 2019 Assets: Bonds available for sale $ 2,187 Other bond securities 13 Other invested assets 45 Short-term investments 107 Cash 63 Accrued investment income 19 Deferred income taxes ( 22) Other assets 106 Assets of business held for sale 2,518 Less: Loss Accrual ( 98) Total assets held for sale $ 2,420 Liabilities: Other liabilities $ 15 Total liabilities held for sale $ 15 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BUSINESS COMBINATION | |
Pro Forma Income Statement Information | Years Ended December 31, (dollars in millions, except per common share data) 2018* 2017* Total revenues $ 48,588 $ 52,009 Net income (loss) 16 ( 6,104) Net loss attributable to AIG common shareholders ( 51) ( 6,132) Loss per common share attributable to AIG common shareholders: Basic: Net loss attributable to AIG common shareholders ( 0.06) ( 6.59) Diluted: Net loss attributable to AIG common shareholders ( 0.06) ( 6.59) * Pro forma adjustments were made to Validus’ external reporting results prior to the acquisition date for the deconsolidation of certain asset management entities consistent with AIG’s post acquisition accounting, which had no impact on Net income attributable to Validus. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
Assets and liabilities measured at fair value on a recurring basis | December 31, 2019 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (a) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 135 $ 5,245 $ - $ - $ - $ 5,380 Obligations of states, municipalities and political subdivisions - 13,197 2,121 - - 15,318 Non-U.S. governments 60 14,809 - - - 14,869 Corporate debt - 147,973 1,663 - - 149,636 RMBS - 19,397 13,408 - - 32,805 CMBS - 13,377 1,053 - - 14,430 CDO/ABS - 10,962 7,686 - - 18,648 Total bonds available for sale 195 224,960 25,931 - - 251,086 Other bond securities: U.S. government and government sponsored entities - 2,121 - - - 2,121 Non-U.S. governments - - - - - - Corporate debt - 18 - - - 18 RMBS - 346 143 - - 489 CMBS - 272 50 - - 322 CDO/ABS - 187 3,545 - - 3,732 Total other bond securities - 2,944 3,738 - - 6,682 Equity securities 756 77 8 - - 841 Other invested assets (b) - 86 1,192 - - 1,278 Derivative assets: Interest rate contracts 1 3,199 - - - 3,200 Foreign exchange contracts - 1,034 6 - - 1,040 Equity contracts 5 593 171 - - 769 Credit contracts - - 3 - - 3 Other contracts - - 14 - - 14 Counterparty netting and cash collateral - - - ( 2,427) ( 1,806) ( 4,233) Total derivative assets 6 4,826 194 ( 2,427) ( 1,806) 793 Short-term investments 2,299 3,044 - - - 5,343 Other assets 57 2,212 89 - - 2,358 Separate account assets 89,069 4,203 - - - 93,272 Total $ 92,382 $ 242,352 $ 31,152 $ ( 2,427) $ ( 1,806) $ 361,653 Liabilities: Policyholder contract deposits $ - $ - $ 6,910 $ - $ - $ 6,910 Derivative liabilities: Interest rate contracts 4 2,745 - - - 2,749 Foreign exchange contracts - 1,025 - - - 1,025 Equity contracts 8 111 20 - - 139 Credit contracts - 24 65 - - 89 Other contracts - - 7 - - 7 Counterparty netting and cash collateral - - - ( 2,427) ( 527) ( 2,954) Total derivative liabilities 12 3,905 92 ( 2,427) ( 527) 1,055 Other liabilities - 45 - - - 45 Long-term debt - 2,062 - - - 2,062 Total $ 12 $ 6,012 $ 7,002 $ ( 2,427) $ ( 527) $ 10,072 December 31, 2018 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (a) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 53 $ 3,207 $ - $ - $ - $ 3,260 Obligations of states, municipalities and political subdivisions - 14,001 2,000 - - 16,001 Non-U.S. governments 69 14,445 11 - - 14,525 Corporate debt - 129,836 864 - - 130,700 RMBS - 20,178 14,199 - - 34,377 CMBS - 11,784 917 - - 12,701 CDO/ABS - 8,725 9,102 - - 17,827 Total bonds available for sale 122 202,176 27,093 - - 229,391 Other bond securities: U.S. government and government sponsored entities 11 2,654 - - - 2,665 Non-U.S. governments - 45 - - - 45 Corporate debt - 1,671 - - - 1,671 RMBS - 424 1,290 - - 1,714 CMBS - 311 77 - - 388 CDO/ABS - 454 4,478 - - 4,932 Total other bond securities 11 5,559 5,845 - - 11,415 Equity securities 1,213 13 27 - - 1,253 Other invested assets (b) - 341 587 - - 928 Derivative assets: Interest rate contracts 2 2,888 - - - 2,890 Foreign exchange contracts - 1,159 5 - - 1,164 Equity contracts 133 190 75 - - 398 Credit contracts - - 1 - - 1 Other contracts - - 15 - - 15 Counterparty netting and cash collateral - - - ( 1,713) ( 1,840) ( 3,553) Total derivative assets 135 4,237 96 ( 1,713) ( 1,840) 915 Short-term investments 2,416 599 - - - 3,015 Other assets - - 58 - - 58 Separate account assets 77,202 4,645 - - - 81,847 Total $ 81,099 $ 217,570 $ 33,706 $ ( 1,713) $ ( 1,840) $ 328,822 Liabilities: Policyholder contract deposits $ - $ - $ 4,116 $ - $ - $ 4,116 Derivative liabilities: Interest rate contracts 4 2,004 15 - - 2,023 Foreign exchange contracts - 858 - - - 858 Equity contracts 12 3 - - - 15 Credit contracts - 8 228 - - 236 Other contracts - - 6 - - 6 Counterparty netting and cash collateral - - - ( 1,713) ( 187) ( 1,900) Total derivative liabilities 16 2,873 249 ( 1,713) ( 187) 1,238 Other liabilities 16 11 - - - 27 Long-term debt - 2,213 - - - 2,213 Total $ 32 $ 5,097 $ 4,365 $ ( 1,713) $ ( 187) $ 7,594 (a) Represents netting of derivative exposures covered by qualifying master netting agreements. (b) Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $ 5.5 billion and $ 5.0 billion as of December 31, 2019 and December 31, 2018, respectively. |
Changes in Level 3 recurring fair value measurements (Assets) | Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross Reclassification Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers of Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out for Sale (a) Acquisition of Year at End of Year December 31, 2019 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,000 $ ( 2) $ 247 $ 282 $ 51 $ ( 457) $ - $ - $ 2,121 $ - Non-U.S. governments 11 5 1 ( 6) 5 ( 16) - - - - Corporate debt 864 ( 7) 88 ( 540) 1,513 ( 255) - - 1,663 - RMBS 14,199 782 55 ( 1,403) 83 ( 287) ( 21) - 13,408 - CMBS 917 24 47 448 58 ( 441) - - 1,053 - CDO/ABS 9,102 33 116 112 120 ( 1,780) ( 17) - 7,686 - Total bonds available for sale 27,093 835 554 ( 1,107) 1,830 ( 3,236) ( 38) - 25,931 - Other bond securities: Corporate debt - - - - - - - - - - RMBS 1,290 80 - ( 1,227) - - - - 143 2 CMBS 77 5 - ( 18) - ( 14) - - 50 6 CDO/ABS 4,478 361 - ( 1,198) - ( 96) - - 3,545 149 Total other bond securities 5,845 446 - ( 2,443) - ( 110) - - 3,738 157 Equity securities 27 - - ( 20) 2 ( 1) - - 8 1 Mortgage and other loans receivable - - - - - - - - - - Other invested assets 587 20 2 ( 33) 616 - - - 1,192 22 Other assets 58 - - ( 7) - - 38 - 89 - Total $ 33,610 $ 1,301 $ 556 $ ( 3,610) $ 2,448 $ ( 3,347) $ - $ - $ 30,958 $ 180 Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross Reclassification Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers of Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out for Sale (a) Acquisition of Year at End of Year Liabilities: Policyholder contract deposits $ 4,116 $ 1,947 $ - $ 847 $ - $ - $ - $ - $ 6,910 $ ( 1,307) Derivative liabilities, net: Interest rate contracts 15 3 - ( 18) - - - - - 1 Foreign exchange contracts ( 5) ( 7) - 6 - - - - ( 6) 3 Equity contracts ( 75) ( 43) - ( 33) - - - - ( 151) 51 Credit contracts 227 ( 84) - ( 81) - - - - 62 46 Other contracts ( 9) ( 67) - 69 - - - - ( 7) 66 Total derivative liabilities, net (b) 153 ( 198) - ( 57) - - - - ( 102) 167 Total $ 4,269 $ 1,749 $ - $ 790 $ - $ - $ - $ - $ 6,808 $ ( 1,140) Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross Reclassification Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers of Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out for Sale (a) Acquisition of Year at End of Year December 31, 2018 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,404 $ - $ ( 152) $ ( 66) $ 54 $ ( 240) $ - $ - $ 2,000 $ - Non-U.S. governments 8 ( 9) 5 ( 1) 13 ( 5) - - 11 - Corporate debt 1,173 ( 74) ( 2) ( 207) 780 ( 806) - - 864 - RMBS 16,136 838 ( 300) ( 2,424) 8 ( 66) - 7 14,199 - CMBS 624 23 ( 29) 207 111 ( 20) - 1 917 - CDO/ABS 8,651 40 ( 42) ( 371) 1,783 ( 1,123) - 164 9,102 - Total bonds available for sale 28,996 818 ( 520) ( 2,862) 2,749 ( 2,260) - 172 27,093 - Other bond securities: Corporate debt 18 - - ( 18) - - - - - - RMBS 1,464 56 - ( 280) 50 - - - 1,290 ( 10) CMBS 74 ( 2) - ( 5) 10 - - - 77 ( 5) CDO/ABS 4,956 428 - ( 905) - ( 9) - 8 4,478 208 Total other bond securities 6,512 482 - ( 1,208) 60 ( 9) - 8 5,845 193 Equity securities - ( 2) - 24 5 - - - 27 - Mortgage and other loans receivable 5 - - ( 5) - - - - - - Other invested assets 250 47 2 288 - - - - 587 71 Other assets - - - 58 - - - - 58 - Total $ 35,763 $ 1,345 $ ( 518) $ ( 3,705) $ 2,814 $ ( 2,269) $ - $ 180 $ 33,610 $ 264 Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross Reclassification Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers of Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out for Sale (a) Acquisition of Year at End of Year Liabilities: Policyholder contract deposits $ 4,136 $ ( 334) $ - $ 314 $ - $ - $ - $ - $ 4,116 $ 495 Derivative liabilities, net: Interest rate contracts 22 ( 1) - ( 6) - - - - 15 1 Foreign exchange contracts - ( 10) - 5 - - - - ( 5) 3 Equity contracts ( 82) ( 22) - 27 - 2 - - ( 75) ( 35) Credit contracts 262 ( 31) - ( 4) - - - - 227 31 Other contracts ( 15) ( 64) - 70 - - - - ( 9) 62 Total derivative liabilities, net (b) 187 ( 128) - 92 - 2 - - 153 62 Total $ 4,323 $ ( 462) $ - $ 406 $ - $ 2 $ - $ - $ 4,269 $ 557 (a) Reported in Other assets in the Consolidated Balance Sheet. (b) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. |
Changes in Level 3 recurring fair value measurements (Liabilities) | Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross Reclassification Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers of Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out for Sale (a) Acquisition of Year at End of Year December 31, 2019 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,000 $ ( 2) $ 247 $ 282 $ 51 $ ( 457) $ - $ - $ 2,121 $ - Non-U.S. governments 11 5 1 ( 6) 5 ( 16) - - - - Corporate debt 864 ( 7) 88 ( 540) 1,513 ( 255) - - 1,663 - RMBS 14,199 782 55 ( 1,403) 83 ( 287) ( 21) - 13,408 - CMBS 917 24 47 448 58 ( 441) - - 1,053 - CDO/ABS 9,102 33 116 112 120 ( 1,780) ( 17) - 7,686 - Total bonds available for sale 27,093 835 554 ( 1,107) 1,830 ( 3,236) ( 38) - 25,931 - Other bond securities: Corporate debt - - - - - - - - - - RMBS 1,290 80 - ( 1,227) - - - - 143 2 CMBS 77 5 - ( 18) - ( 14) - - 50 6 CDO/ABS 4,478 361 - ( 1,198) - ( 96) - - 3,545 149 Total other bond securities 5,845 446 - ( 2,443) - ( 110) - - 3,738 157 Equity securities 27 - - ( 20) 2 ( 1) - - 8 1 Mortgage and other loans receivable - - - - - - - - - - Other invested assets 587 20 2 ( 33) 616 - - - 1,192 22 Other assets 58 - - ( 7) - - 38 - 89 - Total $ 33,610 $ 1,301 $ 556 $ ( 3,610) $ 2,448 $ ( 3,347) $ - $ - $ 30,958 $ 180 Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross Reclassification Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers of Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out for Sale (a) Acquisition of Year at End of Year Liabilities: Policyholder contract deposits $ 4,116 $ 1,947 $ - $ 847 $ - $ - $ - $ - $ 6,910 $ ( 1,307) Derivative liabilities, net: Interest rate contracts 15 3 - ( 18) - - - - - 1 Foreign exchange contracts ( 5) ( 7) - 6 - - - - ( 6) 3 Equity contracts ( 75) ( 43) - ( 33) - - - - ( 151) 51 Credit contracts 227 ( 84) - ( 81) - - - - 62 46 Other contracts ( 9) ( 67) - 69 - - - - ( 7) 66 Total derivative liabilities, net (b) 153 ( 198) - ( 57) - - - - ( 102) 167 Total $ 4,269 $ 1,749 $ - $ 790 $ - $ - $ - $ - $ 6,808 $ ( 1,140) Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value Gains (Losses) Other Sales, Gross Gross Reclassification Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers of Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out for Sale (a) Acquisition of Year at End of Year December 31, 2018 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,404 $ - $ ( 152) $ ( 66) $ 54 $ ( 240) $ - $ - $ 2,000 $ - Non-U.S. governments 8 ( 9) 5 ( 1) 13 ( 5) - - 11 - Corporate debt 1,173 ( 74) ( 2) ( 207) 780 ( 806) - - 864 - RMBS 16,136 838 ( 300) ( 2,424) 8 ( 66) - 7 14,199 - CMBS 624 23 ( 29) 207 111 ( 20) - 1 917 - CDO/ABS 8,651 40 ( 42) ( 371) 1,783 ( 1,123) - 164 9,102 - Total bonds available for sale 28,996 818 ( 520) ( 2,862) 2,749 ( 2,260) - 172 27,093 - Other bond securities: Corporate debt 18 - - ( 18) - - - - - - RMBS 1,464 56 - ( 280) 50 - - - 1,290 ( 10) CMBS 74 ( 2) - ( 5) 10 - - - 77 ( 5) CDO/ABS 4,956 428 - ( 905) - ( 9) - 8 4,478 208 Total other bond securities 6,512 482 - ( 1,208) 60 ( 9) - 8 5,845 193 Equity securities - ( 2) - 24 5 - - - 27 - Mortgage and other loans receivable 5 - - ( 5) - - - - - - Other invested assets 250 47 2 288 - - - - 587 71 Other assets - - - 58 - - - - 58 - Total $ 35,763 $ 1,345 $ ( 518) $ ( 3,705) $ 2,814 $ ( 2,269) $ - $ 180 $ 33,610 $ 264 Net Changes in Realized and Unrealized Gains Unrealized Purchases, (Losses) Included Fair Value (Gains) Losses Other Sales, Gross Gross Reclassification Fair Value in Income on Beginning Included Comprehensive Issuances and Transfers Transfers of Held End Instruments Held (in millions) of Year in Income Income (Loss) Settlements, Net In Out for Sale (a) Acquisition of Year at End of Year Liabilities: Policyholder contract deposits $ 4,136 $ ( 334) $ - $ 314 $ - $ - $ - $ - $ 4,116 $ 495 Derivative liabilities, net: Interest rate contracts 22 ( 1) - ( 6) - - - - 15 1 Foreign exchange contracts - ( 10) - 5 - - - - ( 5) 3 Equity contracts ( 82) ( 22) - 27 - 2 - - ( 75) ( 35) Credit contracts 262 ( 31) - ( 4) - - - - 227 31 Other contracts ( 15) ( 64) - 70 - - - - ( 9) 62 Total derivative liabilities, net (b) 187 ( 128) - 92 - 2 - - 153 62 Total $ 4,323 $ ( 462) $ - $ 406 $ - $ 2 $ - $ - $ 4,269 $ 557 (a) Reported in Other assets in the Consolidated Balance Sheet. (b) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. |
Schedule of net realized and unrealized gains and losses related to Level 3 items | Net Net Realized Investment Capital Other (in millions) Income Gains (Losses) Income Total December 31, 2019 Assets: Bonds available for sale $ 862 $ ( 27) $ - $ 835 Other bond securities 226 220 - 446 Equity securities - - - - Other invested assets 20 - - 20 December 31, 2018 Assets: Bonds available for sale $ 987 $ ( 165) $ ( 4) $ 818 Other bond securities 92 ( 3) 393 482 Equity securities ( 2) - - ( 2) Other invested assets 57 - ( 10) 47 Net Net Realized Investment Capital Other (in millions) Income (Gains) Losses Income Total December 31, 2019 Liabilities: Policyholder contract deposits $ - $ 1,947 $ - $ 1,947 Derivative liabilities, net - ( 134) ( 64) ( 198) December 31, 2018 Liabilities: Policyholder contract deposits $ - $ ( 334) $ - $ ( 334) Derivative liabilities, net - 5 ( 133) ( 128) |
Gross components of purchases, sales, issuances and settlements, net | Issuances Purchases, Sales, and Issuances and (in millions) Purchases Sales Settlements (a) Settlements, Net (a) December 31, 2019 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 362 $ ( 19) $ ( 61) $ 282 Non-U.S. governments - - ( 6) ( 6) Corporate debt 172 ( 129) ( 583) ( 540) RMBS 1,418 ( 27) ( 2,794) ( 1,403) CMBS 539 - ( 91) 448 CDO/ABS 2,145 ( 561) ( 1,472) 112 Total bonds available for sale 4,636 ( 736) ( 5,007) ( 1,107) Other bond securities: Corporate debt - - - - RMBS - ( 1,101) ( 126) ( 1,227) CMBS 18 ( 33) ( 3) ( 18) CDO/ABS - ( 386) ( 812) ( 1,198) Total other bond securities 18 ( 1,520) ( 941) ( 2,443) Equity securities 8 - ( 28) ( 20) Mortgage and other loans receivable - - - - Other invested assets 97 - ( 130) ( 33) Other assets - - ( 7) ( 7) Total assets $ 4,759 $ ( 2,256) $ ( 6,113) $ ( 3,610) Liabilities: Policyholder contract deposits $ - $ 852 $ ( 5) $ 847 Derivative liabilities, net ( 44) - ( 13) ( 57) Total liabilities $ ( 44) $ 852 $ ( 18) $ 790 December 31, 2018 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 105 $ ( 8) $ ( 163) $ ( 66) Non-U.S. governments 5 - ( 6) ( 1) Corporate debt 280 ( 216) ( 271) ( 207) RMBS 715 ( 20) ( 3,119) ( 2,424) CMBS 277 ( 2) ( 68) 207 CDO/ABS 1,865 ( 1,073) ( 1,163) ( 371) Total bonds available for sale 3,247 ( 1,319) ( 4,790) ( 2,862) Other bond securities: Corporate debt - - ( 18) ( 18) RMBS 1 ( 34) ( 247) ( 280) CMBS - - ( 5) ( 5) CDO/ABS 90 ( 4) ( 991) ( 905) Total other bond securities 91 ( 38) ( 1,261) ( 1,208) Equity securities 49 - ( 25) 24 Mortgage and other loans receivable - ( 5) - ( 5) Other invested assets 350 ( 29) ( 33) 288 Other assets - - 58 58 Total assets $ 3,737 $ ( 1,391) $ ( 6,051) $ ( 3,705) Liabilities: Policyholder contract deposits $ - $ 533 $ ( 219) $ 314 Derivative liabilities, net ( 52) 80 64 92 Total liabilities $ ( 52) $ 613 $ ( 155) $ 406 (a) There were issuances during the years ended December 31, 2019 and 2018. |
Significant unobservable inputs used for recurring fair value measurements | Fair Value at December 31, Valuation Range (in millions) 2019 Technique Unobservable Input (b) (Weighted Average) Assets: Obligations of states, municipalities and political subdivisions $ 1,633 Discounted cash flow Yield 3.35% - 3.95% ( 3.65%) Corporate debt 1,087 Discounted cash flow Yield 3.48% - 6.22% ( 4.85%) RMBS (a) 11,746 Discounted cash flow Constant prepayment rate 4.00% - 12.89% ( 8.44%) Loss severity 33.68% - 76.91% ( 55.29%) Constant default rate 1.68% - 6.17% ( 3.93%) Yield 2.52% - 4.53% ( 3.52%) CDO/ABS (a) 6,025 Discounted cash flow Yield 2.92% - 4.91% ( 3.91%) CMBS 476 Discounted cash flow Yield 2.77% - 5.18% ( 3.97%) Liabilities: Embedded derivatives within Policyholder contract deposits: Guaranteed minimum withdrawal benefits (GMWB) 2,474 Discounted cash flow Equity volatility 6.15% - 48.85% Base lapse rate 0.16% - 12.60% Dynamic lapse multiplier 50.00% - 143.00% Mortality multiplier (c) 38.00% - 147.00% Utilization 90.00% - 100.00% Equity / interest rate correlation 20.00% - 40.00% NPA (d) 0.12% - 1.53% Index Annuities 3,895 Discounted cash flow Lapse rate 0.31% - 50.00% Mortality multiplier (c) 24.00% - 180.00% Option Budget 1.00% - 4.00% NPA (d) 0.12% - 1.53% Indexed Life 510 Discounted cash flow Base lapse rate 0.00% - 37.97% Mortality rate 0.00% - 100.00% NPA (d) 0.12% - 1.53% Fair Value at December 31, Valuation Range (in millions) 2018 Technique Unobservable Input (b) (Weighted Average) Assets: Obligations of states, municipalities and political subdivisions $ 1,473 Discounted cash flow Yield 3.91% - 5.00% ( 4.46%) Corporate debt 445 Discounted cash flow Yield 4.35% - 5.99% ( 5.17%) RMBS (a) 13,608 Discounted cash flow Constant prepayment rate 4.58% - 14.00% ( 9.29%) Loss severity 39.66% - 74.40% ( 57.03%) Constant default rate 2.46% - 7.39% ( 4.92%) Yield 3.31% - 5.50% ( 4.40%) CDO/ABS (a) 5,461 Discounted cash flow Yield 3.65% - 5.10% ( 4.37%) CMBS 447 Discounted cash flow Yield 3.29% - 6.07% ( 4.68%) Liabilities: Embedded derivatives within Policyholder contract deposits: GMWB 1,943 Discounted cash flow Equity volatility 6.05% - 47.65% Base lapse rate 0.16% - 12.60% Dynamic lapse multiplier 20.00% - 180.00% Mortality multiplier (c) 40.00% - 153.00% Utilization 90.00% - 100.00% Equity / interest rate correlation 20.00% - 40.00% NPA (d) 0.25% - 1.77% Index Annuities 1,778 Discounted cash flow Lapse rate 0.50% - 40.00% Mortality multiplier (c) 42.00% - 162.00% Option Budget 1.00% - 3.00% NPA (d) 0.25% - 1.77% Indexed Life 374 Discounted cash flow Base lapse rate 0.00% - 13.00% Mortality rate 0.00% - 100.00% NPA (d) 0.25% - 1.77% (a) Information received from third-party valuation service providers. The ranges of the unobservable inputs for constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by us, because there are other factors relevant to the fair values of specific tranches owned by us including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points. (b) Represents discount rates, estimates and assumptions that we believe would be used by market participants when valuing these assets and liabilities. (c) Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table. (d) NPA applied as a spread over risk-free curve for discounting. |
Investments in certain entities carried at fair value using net asset value per share | December 31, 2019 December 31, 2018 Fair Value Fair Value Using NAV Using NAV Per Share (or Unfunded Per Share (or Unfunded (in millions) Investment Category Includes its equivalent) Commitments its equivalent) Commitments Investment Category Private equity funds: Leveraged buyout Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage $ 1,189 $ 1,543 $ 847 $ 1,327 Real Estate / Infrastructure Investments in real estate properties and infrastructure positions, including power plants and other energy generating facilities 400 290 190 83 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 111 155 126 127 Growth Equity Funds that make investments in established companies for the purpose of growing their businesses 422 57 362 28 Mezzanine Funds that make investments in the junior debt and equity securities of leveraged companies 325 414 211 75 Other Includes distressed funds that invest in securities of companies that are in default or under bankruptcy protection, as well as funds that have multi-strategy, and other strategies 773 206 514 307 Total private equity funds 3,220 2,665 2,250 1,947 Hedge funds: Event-driven Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations 727 - 787 - Long-short Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk 539 - 863 - Macro Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions 894 - 887 - Distressed Securities of companies that are in default, under bankruptcy protection or troubled 1 - 21 8 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 168 1 158 1 Total hedge funds 2,329 1 2,716 9 Total $ 5,549 $ 2,666 $ 4,966 $ 1,956 |
Gains or losses related to the eligible instruments for which AIG elected the fair value option | Years Ended December 31, Gain (Loss) (in millions) 2019 2018 2017 Assets: Bond and equity securities $ 1,046 $ 343 $ 1,646 Alternative investments (a) 591 213 509 Other, including Short-term investments - - 1 Liabilities: Other liabilities - - ( 2) Long-term debt (b) ( 181) ( 1) ( 49) Total gain $ 1,456 $ 555 $ 2,105 (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, 2019 December 31, 2018 Outstanding Outstanding (in millions) Fair Value Principal Amount Difference Fair Value Principal Amount Difference Liabilities: Long-term debt * $ 2,062 $ 1,502 $ 560 $ 2,213 $ 1,653 $ 560 * Includes GIAs, notes, bonds, loans and mortgages payable. |
Fair value assets measured on nonrecurring basis and impairment charges | Assets at Fair Value Impairment Charges (a) Non-Recurring Basis December 31, (in millions) Level 1 Level 2 Level 3 Total 2019 2018 2017 December 31, 2019 Other investments $ - $ - $ 329 $ 329 $ 76 $ 97 $ 77 Investments in life settlements - - - - - - 360 Other assets - - 1 1 74 64 157 Total $ - $ - $ 330 $ 330 $ 150 $ 161 $ 594 December 31, 2018 Other investments $ - $ - $ 315 $ 315 Investments in life settlements - - - - Other assets - - 11 11 Total $ - $ - $ 326 $ 326 (a) Impairments in 2017 included $ 35 million related to Other assets of $ 179 million that were sold during the three-month period ended June 30, 2017. |
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, 2019 Assets: Mortgage and other loans receivable $ - $ 101 $ 48,904 $ 49,005 $ 46,984 Other invested assets - 735 6 741 742 Short-term investments - 7,887 - 7,887 7,887 Cash 2,856 - - 2,856 2,856 Other assets 291 20 - 311 311 Liabilities: Policyholder contract deposits associated with investment-type contracts - 255 132,991 133,246 126,137 Other liabilities 15 3,048 - 3,063 3,063 Long-term debt and debt of consolidated investment entities - 27,024 8,883 35,907 33,288 Separate account liabilities - investment contracts - 88,770 - 88,770 88,770 December 31, 2018 Assets: Mortgage and other loans receivable $ - $ 105 $ 43,522 $ 43,627 $ 43,135 Other invested assets - 731 6 737 737 Short-term investments - 6,659 - 6,659 6,659 Cash 2,873 - - 2,873 2,873 Other assets 308 35 - 343 343 Liabilities: Policyholder contract deposits associated with investment-type contracts - 339 121,035 121,374 120,602 Other liabilities - 1,154 - 1,154 1,154 Long-term debt and debt of consolidated investment entities - 22,822 8,775 31,597 32,327 Separate account liabilities - investment contracts - 77,651 - 77,651 77,651 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Line Items] | |
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, 2019 Bonds available for sale: U.S. government and government sponsored entities $ 5,108 $ 316 $ ( 44) $ 5,380 $ - Obligations of states, municipalities and political subdivisions 13,960 1,390 ( 32) 15,318 - Non-U.S. governments 14,042 884 ( 57) 14,869 ( 18) Corporate debt 138,046 12,090 ( 500) 149,636 7 Mortgage-backed, asset-backed and collateralized: RMBS 29,802 3,067 ( 64) 32,805 1,149 CMBS 13,879 576 ( 25) 14,430 34 CDO/ABS 18,393 348 ( 93) 18,648 14 Total mortgage-backed, asset-backed and collateralized 62,074 3,991 ( 182) 65,883 1,197 Total bonds available for sale (b) $ 233,230 $ 18,671 $ ( 815) $ 251,086 $ 1,186 December 31, 2018 Bonds available for sale: U.S. government and government sponsored entities $ 3,170 $ 132 $ ( 42) $ 3,260 $ - Obligations of states, municipalities and political subdivisions 15,421 701 ( 121) 16,001 4 Non-U.S. governments 14,376 451 ( 302) 14,525 - Corporate debt 130,436 3,911 ( 3,647) 130,700 4 Mortgage-backed, asset-backed and collateralized: RMBS 31,940 2,754 ( 317) 34,377 1,155 CMBS 12,673 242 ( 214) 12,701 31 CDO/ABS 17,764 228 ( 165) 17,827 17 Total mortgage-backed, asset-backed and collateralized 62,377 3,224 ( 696) 64,905 1,203 Total bonds available for sale (b) $ 225,780 $ 8,419 $ ( 4,808) $ 229,391 $ 1,211 (a) Represents the amount of other-than-temporary impairments recognized in Accumulated other comprehensive income (loss). 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, 2019 and 2018, bonds available for sale held by us that were below investment grade or not rated totaled $ 27.8 billion and $ 28.8 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, 2,019.0 Bonds available for sale: U.S. government and government sponsored entities $ 1,461 $ 44 $ 63 $ - $ 1,524 $ 44 Obligations of states, municipalities and political subdivisions 672 21 246 11 918 32 Non-U.S. governments 1,105 12 343 45 1,448 57 Corporate debt 11,868 319 2,405 181 14,273 500 RMBS 3,428 28 1,367 36 4,795 64 CMBS 1,877 16 367 9 2,244 25 CDO/ABS 3,920 53 2,571 40 6,491 93 Total bonds available for sale $ 24,331 $ 493 $ 7,362 $ 322 $ 31,693 $ 815 December 31, 2,018.0 Bonds available for sale: U.S. government and government sponsored entities $ 574 $ 13 $ 873 $ 29 $ 1,447 $ 42 Obligations of states, municipalities and political subdivisions 1,965 51 1,530 70 3,495 121 Non-U.S. governments 3,851 149 2,422 153 6,273 302 Corporate debt 47,364 2,181 20,056 1,466 67,420 3,647 RMBS 5,231 94 5,641 223 10,872 317 CMBS 2,646 47 4,264 167 6,910 214 CDO/ABS 9,169 144 1,324 21 10,493 165 Total bonds available for sale $ 70,800 $ 2,679 $ 36,110 $ 2,129 $ 106,910 $ 4,808 |
The amortized cost and fair value of fixed maturity securities available for sale by contractual maturity | Total Fixed Maturity Securities Available for Sale (in millions) Amortized Cost Fair Value December 31, 2019 Due in one year or less $ 10,268 $ 10,441 Due after one year through five years 44,017 45,226 Due after five years through ten years 42,074 44,858 Due after ten years 74,797 84,678 Mortgage-backed, asset-backed and collateralized 62,074 65,883 Total $ 233,230 $ 251,086 |
The gross realized gains and gross realized losses from sales of AIG's available for sale securities | Years Ended December 31, 2019 2018 2017 Gross Gross Gross Gross Gross Gross Realized Realized Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Gains Losses Fixed maturity securities $ 650 $ 330 $ 331 $ 476 $ 725 $ 300 Equity securities - - 16 - 107 19 Total $ 650 $ 330 $ 347 $ 476 $ 832 $ 319 |
The fair value of AIG's other securities | December 31, 2019 December 31, 2018 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 2,121 28 % $ 2,665 21 % Non-U.S. governments - - 45 - Corporate debt 18 - 1,671 13 Mortgage-backed, asset-backed and collateralized : RMBS 489 7 1,714 14 CMBS 322 4 388 3 CDO/ABS and other collateralized 3,732 50 4,932 39 Total mortgage-backed, asset-backed and collateralized 4,543 61 7,034 56 Total fixed maturity securities 6,682 89 11,415 90 Equity securities 841 11 1,253 10 Total $ 7,523 100 % $ 12,668 100 % |
Components of other invested assets | December 31, December 31, (in millions) 2019 2018 Alternative investments (a) (b) $ 8,845 $ 8,966 Investment real estate (c) 8,491 8,935 All other investments 1,456 1,440 Total $ 18,792 $ 19,341 (a) At December 31, 2019, included hedge funds of $ 3.3 billion, private equity funds of $ 5.2 billion, and affordable housing partnerships of $ 331 million. At December 31, 2018, included hedge funds of $ 4.2 billion, private equity funds of $ 4.3 billion, and affordable housing partnerships of $ 438 million. (b) At December 31, 2019, approximately 88 percent of our hedge fund portfolio is available for redemption in 2020. The remaining 12 percent will be available for redemption between 2021 and 2027. (c) Net of accumulated depreciation of $ 703 million and $ 598 million in 2019 and 2018, respectively. |
Summarized financial information of AIG's equity method investees | Years Ended December 31, (in millions) 2019 2018 2017 Operating results: Total revenues $ 8,045 $ 15,310 $ 13,066 Total expenses ( 3,115) ( 3,200) ( 6,835) Net income $ 4,930 $ 12,110 $ 6,231 At December 31, (in millions) 2019 2018 Balance sheet: Total assets $ 93,773 $ 96,915 Total liabilities $ ( 14,218) $ ( 21,063) |
The carrying value and ownership percentage of AIA and equity method investments | 2019 2018 Carrying Ownership Carrying Ownership (in millions) Value Percentage Value Percentage Equity method investments $ 5,911 Various $ 6,520 Various |
Components of net investment income | Years Ended December 31, (in millions) 2019 2018 2017 Available for sale fixed maturity securities, including short-term investments $ 10,768 $ 10,323 $ 10,435 Other fixed maturity securities 1,015 7 660 Equity securities (a) 159 ( 162) 34 Interest on mortgage and other loans 2,030 1,874 1,661 Alternative investments (b) 1,088 655 1,475 Real estate 304 257 144 Other investments ( 220) 15 290 Total investment income 15,144 12,969 14,699 Investment expenses 525 493 520 Net investment income $ 14,619 $ 12,476 $ 14,179 (a) Upon the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, the change in fair value of all equity securities is included in Net investment income. (b) Includes income from hedge funds, private equity funds and affordable housing partnerships. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag. |
Components of net realized capital gains (losses) | Years Ended December 31, (in millions) 2019 2018 2017 Sales of fixed maturity securities $ 320 $ ( 145) $ 425 Sales of equity securities (a) - 16 88 Other-than-temporary impairments: Severity - - ( 2) Change in intent ( 3) ( 87) ( 9) Foreign currency declines ( 18) ( 15) ( 11) Issuer-specific credit events ( 147) ( 147) ( 234) Adverse projected cash flows ( 6) ( 2) ( 4) Provision for loan losses ( 46) ( 92) ( 50) Foreign exchange transactions 227 ( 182) 489 Variable annuity embedded derivatives, net of related hedges ( 294) 304 ( 1,374) All other derivatives and hedge accounting ( 22) 338 ( 368) Impairments on investments in life settlements - - ( 360) Loss on sale of private equity funds - ( 321) - Other (b) 621 203 30 Net realized capital gains (losses) $ 632 $ ( 130) $ ( 1,380) (a) Upon the adoption of the Financial Instruments Recognition and Measurement Standard on January 1, 2018, the change in fair value of all equity securities is included in Net investment income. (b) In 2019, includes $ 200 million from the sale and concurrent leaseback of our corporate headquarters and $ 300 million as a result of sales in investment real estate properties. In 2018, primarily includes $ 96 million and $ 49 million of realized gains on the sale of shares of OneMain Holdings, Inc. and an investment in Castle Holdings LLC’s aircraft assets, respectively. |
Credit impairments recognized in earnings for available for sale fixed maturity securities | Years Ended December 31, (in millions) 2019 2018 2017 Balance, beginning of year $ - $ 526 $ 1,098 Increases due to: Credit impairments on new securities subject to impairment losses 136 59 122 Additional credit impairments on previously impaired securities 17 90 74 Reductions due to: Credit impaired securities fully disposed for which there was no prior intent or requirement to sell ( 64) ( 145) ( 99) Accretion on securities previously impaired due to credit * ( 20) ( 530) ( 669) Balance, end of year $ 69 $ - $ 526 * 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) $ 35,139 Cash flows expected to be collected * 28,720 Recorded investment in acquired securities 19,382 * 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) 2019 2018 Outstanding principal balance $ 10,476 $ 12,495 Amortized cost 6,970 8,646 Fair value 8,664 10,280 |
Activity for accretable yield on Purchased Credit Impaired (PCI) Securities | Years Ended December 31, (in millions) 2019 2018 Balance, beginning of year $ 7,210 $ 7,501 Newly purchased PCI securities 17 33 Disposals - ( 21) Accretion ( 624) ( 722) Effect of changes in interest rate indices ( 541) 207 Net reclassification from (to) non-accretable difference, including effects of prepayments ( 350) 212 Activities related to businesses reclassified to held for sale ( 7) - Balance, end of year $ 5,705 $ 7,210 |
Schedule of fair value of securities pledged to counterparties under secured financing transactions | (in millions) December 31, 2019 December 31, 2018 Fixed maturity securities available for sale $ 3,030 $ 1,050 Other bond securities, at fair value $ - $ 122 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | Remaining Contractual Maturity of the Agreements Overnight up to and 30 31 - 90 91 - 364 365 days (in millions) Continuous days days days or greater Total December 31, 2019 Bonds available for sale: Non-U.S. governments $ 2 $ 71 $ - $ - $ - $ 73 Corporate debt 22 55 82 - - 159 Other bond securities: U.S. government and government sponsored entities - - - - - - Non-U.S. governments - - - - - - Corporate debt - - - - - - Total $ 24 $ 126 $ 82 $ - $ - $ 232 December 31, 2018 Bonds available for sale: Non-U.S. governments $ 25 $ 35 $ - $ - $ - $ 60 Corporate debt 51 55 - - - 106 Other bond securities: U.S. government and government sponsored entities 11 - - - - 11 Non-U.S. governments - 3 - - - 3 Corporate debt 17 38 53 - - 108 Total $ 104 $ 131 $ 53 $ - $ - $ 288 Remaining Contractual Maturity of the Agreements Overnight up to and 30 31 - 90 91 - 364 365 days (in millions) Continuous days days days or greater Total December 31, 2019 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ - $ 386 $ - $ - $ 386 Non-U.S. governments - - - - - - Corporate debt - 1,071 947 - - 2,018 RMBS - - - 394 - 394 Total $ - $ 1,071 $ 1,333 $ 394 $ - $ 2,798 December 31, 2018 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ 50 $ 130 $ - $ - $ 180 Non-U.S. governments - 21 8 - - 29 Corporate debt - 330 345 - - 675 Total $ - $ 401 $ 483 $ - $ - $ 884 |
Schedule of fair value of securities pledged to the entity under reverse repurchase agreements | (in millions) December 31, 2019 December 31, 2018 Securities collateral pledged to us $ 2,567 $ 426 Amount sold or repledged by us 121 106 |
Available-for-sale Securities [Member] | |
Investments [Line Items] | |
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments | Years Ended December 31, (in millions) 2019 2018 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ 14,245 $ ( 9,920) Other investments ( 70) ( 88) Total increase (decrease) in unrealized appreciation (depreciation) of investments * $ 14,175 $ ( 10,008) * Excludes net unrealized gains and losses attributable to businesses held for sale at December 31, 2019. |
Equity Securities [Member] | |
Investments [Line Items] | |
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments | Years Ended December 31, 2019 2018 Other Other Invested Invested (in millions) Equities Assets Total Equities Assets Total Net gains and losses recognized during the year on equity securities $ 159 $ 744 $ 903 $ ( 184) $ 342 $ 158 Less: Net gains and losses recognized during the year on equity securities sold during the year 39 159 198 56 23 79 Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date $ 120 $ 585 $ 705 $ ( 240) $ 319 $ 79 |
LENDING ACTIVITIES (Tables)
LENDING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LENDING ACTIVITIES | |
Composition of Mortgages and other loans receivable | December 31, December 31, (in millions) 2019 2018 Commercial mortgages * $ 36,170 $ 32,882 Residential mortgages 6,683 6,532 Life insurance policy loans 2,065 2,147 Commercial loans, other loans and notes receivable 2,504 1,971 Total mortgage and other loans receivable 47,422 43,532 Allowance for credit losses ( 438) ( 397) Mortgage and other loans receivable, net $ 46,984 $ 43,135 * Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 23 percent and 10 percent, respectively, at December 31, 2019, and 22 percent and 11 percent, respectively, at December 31, 2018). |
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, 2019 Loan-to-Value Ratios (b) Less than 65% $ 23,013 $ 2,440 $ 245 $ 25,698 65% to 75% 9,007 899 40 9,946 76% to 80% 200 6 - 206 Greater than 80% 184 2 134 320 Total commercial mortgages $ 32,404 $ 3,347 $ 419 $ 36,170 December 31, 2018 Loan-to-Value Ratios (b) Less than 65% $ 19,204 $ 2,543 $ 250 $ 21,997 65% to 75% 9,060 300 203 9,563 76% to 80% 476 20 15 511 Greater than 80% 596 103 112 811 Total commercial mortgages $ 29,336 $ 2,966 $ 580 $ 32,882 (a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 2.0X and 1.9X at December 31, 2019 and 2018, respectively. (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. Our weighted average loan-to-value ratio was 56 percent and 58 percent at December 31, 2019, and 2018, respectively. |
Schedule of credit quality indicators for the commercial mortgage loans | Number Percent of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total (c) Total $ December 31, 2019 Credit Quality Performance Indicator: In good standing 736 $ 13,698 $ 10,553 $ 5,332 $ 3,663 $ 2,211 $ 522 $ 35,979 99 % Restructured (a) 3 - 89 - - 101 - 190 1 90 days or less delinquent 1 1 - - - - - 1 - >90 days delinquent or in process of foreclosure - - - - - - - - - Total (b) 740 $ 13,699 $ 10,642 $ 5,332 $ 3,663 $ 2,312 $ 522 $ 36,170 100 % Allowance for credit losses: Specific $ - $ 2 $ 1 $ - $ 6 $ - $ 9 - % General 81 153 44 30 14 5 327 1 Total allowance for credit losses $ 81 $ 155 $ 45 $ 30 $ 20 $ 5 $ 336 1 % December 31, 2018 Credit Quality Performance Indicator: In good standing 762 $ 11,190 $ 9,774 $ 5,645 $ 3,074 $ 2,507 $ 580 $ 32,770 100 % Restructured (a) 2 - 96 - - 16 - 112 - 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure - - - - - - - - - Total (b) 764 $ 11,190 $ 9,870 $ 5,645 $ 3,074 $ 2,523 $ 580 $ 32,882 100 % Allowance for credit losses: Specific $ - $ 2 $ - $ - $ 1 $ - $ 3 - % General 122 104 51 13 19 6 315 1 Total allowance for credit losses $ 122 $ 106 $ 51 $ 13 $ 20 $ 6 $ 318 1 % (a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see below. (b) Does not reflect allowance for credit losses. (c) Our commercial mortgage loan portfolio is current as to payments of principal and interest, for both periods presented. 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 | Years Ended December 31, 2019 2018 2017 Commercial Other Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 318 $ 79 $ 397 $ 247 $ 75 $ 322 $ 194 $ 103 $ 297 Loans charged off ( 2) ( 3) ( 5) ( 17) ( 2) ( 19) ( 22) ( 3) ( 25) Recoveries of loans previously charged off - - - - 1 1 - 1 1 Net charge-offs ( 2) ( 3) ( 5) ( 17) ( 1) ( 18) ( 22) ( 2) ( 24) Provision for loan losses 20 26 46 88 5 93 75 ( 26) 49 Allowance, end of year $ 336 * $ 102 $ 438 $ 318 * $ 79 $ 397 $ 247 * $ 75 $ 322 * Of the total allowance at the end of the year, $ 10 million, $ 3 million and $ 5 million relate to individually assessed credit losses on $ 148 million, $ 54 million and $ 82 million of commercial mortgages as of December 31, 2019, 2018 and 2017, respectively. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Effects of Reinsurance [Line Items] | |
Supplemental information for gross loss and benefit reserves net of ceded reinsurance | At December 31, 2019 2018 As Net of As Net of (in millions) Reported Reinsurance Reported Reinsurance Liability for unpaid losses and loss adjustment expenses $ ( 78,328) $ ( 47,259) $ ( 83,639) $ ( 51,949) Future policy benefits for life and accident and health insurance contracts ( 50,512) ( 49,670) ( 44,935) ( 43,936) Policyholder contract deposits ( 151,869) ( 150,944) ( 142,262) ( 141,407) Reserve for unearned premiums ( 18,269) ( 15,067) ( 19,248) ( 16,300) Reinsurance assets (a) 36,038 36,492 (a) Reinsurance assets excludes (i) allowance for doubtful accounts of $ 111 million and $ 140 million for the years ended December 31, 2019 and 2018, respectively, and (ii) paid loss recoveries of $ 2,050 million and $ 1,820 million for the years ended December 31, 2019 and 2018, respectively. |
Schedule of long-duration insurance in force ceded to other insurance companies | At December 31, (in millions) 2019 2018 2017 Long-duration insurance in force ceded $ 264,732 $ 228,846 $ 202,402 |
Short-Duration Reinsurance | |
Effects of Reinsurance [Line Items] | |
Schedule of insurance premiums written and earned | Years Ended December 31, (in millions) 2019 2018 2017 Premiums written: Direct $ 29,338 $ 30,368 $ 30,229 Assumed 5,808 4,186 3,065 Ceded ( 9,692) ( 7,757) ( 7,535) Net $ 25,454 $ 26,797 $ 25,759 Premiums earned: Direct $ 30,017 $ 31,450 $ 30,928 Assumed 6,395 4,638 3,374 Ceded ( 9,526) ( 8,164) ( 7,904) Net $ 26,886 $ 27,924 $ 26,398 |
Long-Duration Reinsurance | |
Effects of Reinsurance [Line Items] | |
Schedule of insurance premiums written and earned | Years Ended December 31, (in millions) 2019 2018 2017 Premiums Direct $ 4,363 $ 3,489 $ 5,771 Assumed 228 56 15 Ceded ( 916) ( 855) ( 810) Net $ 3,675 $ 2,690 $ 4,976 Policy Fees Direct $ 3,016 $ 2,792 $ 2,936 Assumed - - - Ceded ( 1) ( 1) ( 1) Net $ 3,015 $ 2,791 $ 2,935 |
DEFERRED POLICY ACQUISITION C_2
DEFERRED POLICY ACQUISITION COSTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DEFERRED POLICY ACQUISITION COSTS | |
Rollforward of DAC | Years Ended December 31, (in millions) 2019 2018 2017 Balance, beginning of year $ 12,694 $ 10,994 $ 11,042 Acquisitions - 298 - Dispositions - - ( 35) Acquisition costs deferred 5,403 5,832 4,820 Amortization expense ( 5,164) ( 5,386) ( 4,288) Change related to unrealized appreciation (depreciation) of investments ( 1,768) 1,063 ( 505) Other, including foreign exchange 42 ( 107) ( 40) Reclassified to Assets held for sale - - - Balance, end of year (a) $ 11,207 $ 12,694 $ 10,994 Supplemental Information: VOBA amortization expense included in DAC amortization $ 171 $ 243 $ 20 VOBA, end of year included in DAC balance (b) 317 438 381 (a) Net of reductions in DAC of $ 1.8 billion, $ 1.0 billion and $ 1.3 billion at December 31, 2019, 2018 and 2017, respectively, related to the effect of net unrealized gains and losses on available for sale securities (shadow DAC). (b) Includes $ 101 million of VOBA from the acquisition of Validus in 2018, the majority of which was amortized in 2019. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entity Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | (in millions) Real Estate and Investment Entities (d) Securitization Vehicles (e) Affordable Housing Partnerships Other Total December 31, 2019 Assets: Bonds available for sale $ 177 $ 7,239 $ - $ - $ 7,416 Other bond securities - 3,324 - 1 3,325 Mortgage and other loans receivable - 3,860 - - 3,860 Other invested assets 5,231 - 3,464 42 8,737 Other (a) 615 1,996 469 42 3,122 Total assets (b) $ 6,023 $ 16,419 $ 3,933 $ 85 $ 26,460 Liabilities: Long-term debt $ 2,810 $ 4,356 $ 2,074 $ 4 $ 9,244 Other (c) 236 359 195 24 814 Total liabilities $ 3,046 $ 4,715 $ 2,269 $ 28 $ 10,058 December 31, 2018 Assets: Bonds available for sale $ - $ 7,662 $ - $ - $ 7,662 Other bond securities - 3,923 - 2 3,925 Mortgage and other loans receivable - 3,693 - - 3,693 Other invested assets 5,212 - 3,142 24 8,378 Other (a) 580 1,581 394 70 2,625 Total assets (b) $ 5,792 $ 16,859 $ 3,536 $ 96 $ 26,283 Liabilities: Long-term debt $ 2,577 $ 3,154 $ 1,834 $ 4 $ 7,569 Other (c) 227 165 159 24 575 Total liabilities $ 2,804 $ 3,319 $ 1,993 $ 28 $ 8,144 (a) Comprised primarily of Short-term investments and Other assets at December 31, 2019 and 2018. (b) The assets of each VIE can be used only to settle specific obligations of that VIE. (c) Comprised primarily of Other liabilities at December 31, 2019 and 2018. (d) At December 31, 2019 and 2018, off-balance sheet exposure primarily consisting of commitments to real estate and investment entities was $ 2.6 billion and $ 1.4 billion, respectively. (e) At December 31, 2019 and 2018, the company had contributed total assets of $ 15.6 billion and $ 16.0 billion, respectively, into consolidated securitization vehicles. |
Variable Interest Entity Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | Maximum Exposure to Loss Total VIE On-Balance Off-Balance (in millions) Assets Sheet (b) Sheet Total December 31, 2019 Real estate and investment entities (a) $ 283,349 $ 6,519 $ 3,286 $ 9,805 Affordable housing partnerships 3,351 453 - 453 Other 5,320 310 - (c) 310 Total $ 292,020 $ 7,282 $ 3,286 $ 10,568 December 31, 2018 Real estate and investment entities (a) $ 309,598 $ 6,820 $ 2,501 $ 9,321 Affordable housing partnerships 4,116 607 - 607 Other 2,813 284 1,222 (c) 1,506 Total $ 316,527 $ 7,711 $ 3,723 $ 11,434 (a) Comprised primarily of hedge funds and private equity funds. (b) At December 31, 2019 and 2018, $ 7.0 billion and $ 7.4 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (c) 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. |
DERIVATIVES AND HEDGE ACCOUNT_2
DERIVATIVES AND HEDGE ACCOUNTING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
Notional amounts and fair values of derivative instruments | December 31, 2019 December 31, 2018 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 $ 495 $ 3 $ 410 $ 7 $ 10 $ - $ 866 $ 19 Foreign exchange contracts 4,328 342 5,230 162 6,357 363 2,536 147 Derivatives not designated as hedging instruments: (a) Interest rate contracts 52,437 3,197 35,231 2,742 42,821 2,890 27,329 2,004 Foreign exchange contracts 8,133 698 12,093 863 11,134 801 5,434 711 Equity contracts 18,533 769 7,539 139 17,807 398 2,399 15 Credit contracts (b) 8,457 3 923 89 8 1 1,406 236 Other contracts (c) 40,582 14 56 7 39,070 15 58 6 Total derivatives, gross $ 132,965 $ 5,026 $ 61,482 $ 4,009 $ 117,207 $ 4,468 $ 40,028 $ 3,138 Counterparty netting (d) ( 2,427) ( 2,427) ( 1,713) ( 1,713) Cash collateral (e) ( 1,806) ( 527) ( 1,840) ( 187) Total derivatives on consolidated balance sheets (f) $ 793 $ 1,055 $ 915 $ 1,238 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b) As of December 31, 2019 and 2018, included CDSs on super senior multi-sector CDOs with a net notional amount of $ 152 million and $ 592 million (fair value liability of $ 48 million and $ 224 million), respectively. The net notional amount represents the maximum exposure to loss on the portfolio. (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, 2019 and December 31, 2018. Fair value of liabilities related to bifurcated embedded derivatives was $ 6.9 billion and $ 4.1 billion, respectively, at December 31, 2019 and December 31, 2018. 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: Hedging Excluded Hedged (in millions) Derivatives (a) Components (b) Items Net Impact Year ended December 31, 2019 Interest rate contracts : Realized capital gains/(losses) $ - $ - $ - $ - Interest credited to policyholder account balances 16 - ( 16) - Net investment income ( 1) - 1 - Foreign exchange contracts : Realized capital gains/(losses) ( 31) 91 31 91 Other income - - - - Equity contracts : Realized capital gains/(losses) - - - - Year ended December 31, 2018 Interest rate contracts : Realized capital gains/(losses) $ ( 2) $ - $ 2 $ - Interest credited to policyholder account balances - - - - Net investment income - - - - Foreign exchange contracts : Realized capital gains/(losses) 365 106 ( 365) 106 Other income - - - - Equity contracts : Realized capital gains/(losses) - - - - Year ended December 31, 2017 Interest rate contracts : Realized capital gains/(losses) $ ( 4) $ - $ 4 $ - Interest credited to policyholder account balances - - - - Net investment income - - - - Foreign exchange contracts : Realized capital gains/(losses) ( 393) ( 26) 393 ( 26) Other income - - 4 4 Equity contracts : Realized capital gains/(losses) ( 42) ( 5) 42 ( 5) (a) Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness. (b) Gains and losses on derivative instruments designated and qualifying in fair value hedges that are excluded from the assessment of hedge effectiveness and recognized in earnings on a mark-to-market basis. |
Effect of AIG's derivative instruments not designated as hedging instruments in the Consolidated Statements of Income | Years Ended December 31, Gains (Losses) Recognized in Earnings (in millions) 2019 2018 2017 By Derivative Type: Interest rate contracts $ 1,319 $ ( 509) $ 56 Foreign exchange contracts ( 25) 543 ( 277) Equity contracts ( 316) ( 56) ( 964) Credit contracts 61 32 58 Other contracts 64 65 75 Embedded derivatives ( 1,464) 629 ( 449) Total $ ( 361) $ 704 $ ( 1,501) By Classification: Policy fees $ 68 $ 67 $ 77 Net investment income ( 125) ( 3) ( 11) Net realized capital gains (losses) ( 316) 561 ( 1,709) Other income - 81 139 Policyholder benefits and claims incurred 12 ( 2) 3 Total $ ( 361) $ 704 $ ( 1,501) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of changes in goodwill by reportable segment | General Insurance North Life Other Legacy (in millions) America International Insurance Operations Portfolio Total Balance at January 1, 2017: Goodwill - gross $ 1,878 $ 2,807 $ 77 $ 27 $ 216 $ 5,005 Accumulated impairments ( 1,264) ( 2,136) - - ( 77) ( 3,477) Net goodwill 614 671 77 27 139 1,528 Increase (decrease) due to: Acquisitions - - - 4 - 4 Dispositions ( 10) ( 7) ( 6) - ( 2) ( 25) Other - 74 13 - - 87 Balance at December 31, 2017: Goodwill - gross 1,868 2,874 84 31 214 5,071 Accumulated impairments ( 1,264) ( 2,136) - - ( 77) ( 3,477) Net goodwill 604 738 84 31 137 1,594 Increase (decrease) due to: Acquisitions (a) 2,332 157 46 9 - 2,544 Other ( 12) ( 48) ( 5) 9 - ( 56) Balance at December 31, 2018: Goodwill - gross 4,188 2,983 125 49 214 7,559 Accumulated impairments ( 1,264) ( 2,136) - - ( 77) ( 3,477) Net goodwill 2,924 847 125 49 137 4,082 Increase (decrease) due to: Acquisitions - 20 - - - 20 Other (b) - 26 8 - ( 98) ( 64) Balance at December 31, 2019: Goodwill - gross 4,188 3,029 133 49 116 7,515 Accumulated impairments ( 1,264) ( 2,136) - - ( 77) ( 3,477) Net goodwill $ 2,924 $ 893 $ 133 $ 49 $ 39 $ 4,038 (a) Includes goodwill of $ 2.0 billion, $ 492 million and $ 46 million relating to the acquisitions of Validus, Glatfelter and Ellipse, respectively. (b) Reflects $ 98 million of goodwill that has been reclassified to assets held for sale. |
Changes in other intangible assets | General Insurance North Life Other Legacy (in millions) America International Insurance Operations Portfolio Total Other intangible assets Balance at January 1, 2018 $ 27 $ 8 $ 34 $ 37 $ - $ 106 Increase (decrease) due to: Acquisitions 61 207 16 - - 284 Amortization ( 2) ( 3) ( 4) ( 2) - ( 11) Other - - - ( 19) - ( 19) Balance at December 31, 2018 $ 86 $ 212 $ 46 $ 16 $ - $ 360 Increase (decrease) due to: Acquisitions - - - - - - Amortization ( 1) ( 1) ( 4) ( 2) - ( 8) Other ( 3) - ( 18) 2 - ( 19) Balance at December 31, 2019: $ 82 $ 211 $ 24 $ 16 $ - $ 333 Value of distribution network acquired Balance at January 1, 2018 $ - $ - $ - $ - $ - $ - Increase (decrease) due to: Acquisitions - - - 582 - 582 Amortization - - - ( 15) - ( 15) Other - - - 2 - 2 Balance at December 31, 2018 $ - $ - $ - $ 569 $ - $ 569 Increase (decrease) due to: Acquisitions - - - - - - Amortization - - - ( 39) - ( 39) Other - - - 6 - 6 Balance at December 31, 2019: $ - $ - $ - $ 536 $ - $ 536 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Claims Development [Line Items] | |
Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense | Years Ended December 31, (in millions) 2019 2018 2017 Liability for unpaid loss and loss adjustment expenses, beginning of year $ 83,639 $ 78,393 $ 77,077 Reinsurance recoverable ( 31,690) ( 26,708) ( 15,532) Net Liability for unpaid loss and loss adjustment expenses, beginning of year 51,949 51,685 61,545 Losses and loss adjustment expenses incurred: Current year 17,596 20,534 21,079 Prior years, excluding discount and amortization of deferred gain ( 340) 1,429 1,565 Prior years, discount charge (benefit) 1,063 ( 252) 187 Prior years, amortization of deferred gain on retroactive reinsurance (a) ( 219) ( 395) ( 284) Total losses and loss adjustment expenses incurred 18,100 21,316 22,547 Losses and loss adjustment expenses paid: Current year ( 4,894) ( 5,754) ( 5,323) Prior years ( 18,020) ( 17,768) ( 16,241) Total losses and loss adjustment expenses paid ( 22,914) ( 23,522) ( 21,564) Other changes: Foreign exchange effect ( 6) ( 677) 788 Acquisitions (b) - 3,284 23 Dispositions (c) - - ( 360) Retroactive reinsurance adjustment (net of discount) (d) 130 ( 137) ( 11,294) Total other changes 124 2,470 ( 10,843) Liability for unpaid loss and loss adjustment expenses, end of year: Net liability for unpaid losses and loss adjustment expenses 47,259 51,949 51,685 Reinsurance recoverable 31,069 31,690 26,708 Total $ 78,328 $ 83,639 $ 78,393 (a) Includes $ 27 million, $ 51 million and $ 25 million for the retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the year ended December 31, 2019, 2018 and 2017, respectively. (b) Includes amounts related to the acquisition of Glatfelter in October 2018, Validus in July 2018 and Blackboard U.S. Holdings Inc. in 2017. (c) Includes amounts related to dispositions through the date of disposition. Includes sale of insurance operations to Fairfax. (d) Includes benefit (charge) from change in discount on retroactive insurance in the amount of $ 469 million, $( 180) million and $( 1.5) billion for the periods ended December 31, 2019, 2018 and 2017, respectively. |
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) U.S. Workers' Compensation (before discount) $ 5,213 $ 6,745 $ 11,958 U.S. Excess Casualty 4,285 5,073 9,358 U.S. Other Casualty 4,064 4,695 8,759 U.S. Financial Lines 5,154 2,221 7,375 U.S. Property and Special risks 4,950 2,807 7,757 U.S. Personal Insurance 1,287 988 2,275 UK/Europe Casualty and Financial lines 6,234 1,268 7,502 UK/Europe Property and Special risks 2,573 1,191 3,764 UK/Europe and Japan Personal Insurance 1,962 519 2,481 U.S. Run-Off Long Tail Insurance Lines (before discount) 4,435 3,587 8,022 Total $ 40,157 $ 29,094 $ 69,251 Reconciling Items Discount on workers' compensation lines ( 2,800) Other product lines 8,679 Unallocated loss adjustment expenses 3,198 Total Loss Reserves $ 78,328 |
Reconciliation of change in net ultimate loss and loss adjustment expense to prior year development | The table below presents the reconciliation of change in net ultimates from tables above to prior year development for the year ended December 31, 2019: Change in Loss and Loss Adjustment Expenses Net Ultimate (a) Re-Attribution of ADC Recovery (b) Amortization of Deferred Gain at Inception Prior Year Development (in millions) U.S. Workers' Compensation $ ( 192) $ ( 178) $ ( 72) $ ( 442) U.S. Excess Casualty 26 55 ( 55) 26 U.S. Other Casualty 188 25 ( 53) 160 U.S. Financial Lines 326 1 ( 37) 290 U.S. Property and Special risks ( 288) 114 ( 13) ( 187) U.S. Personal Insurance ( 85) ( 17) ( 2) ( 104) UK/Europe Casualty and Financial lines 161 - - 161 UK/Europe Property and Special risks ( 108) - - ( 108) UK/Europe and Japan Personal Insurance ( 119) - - ( 119) U.S. Run-Off Long Tail Insurance Lines ( 4) - - ( 4) Other product lines 33 - - 33 Subtotal, adjusted pre-tax basis $ ( 62) $ - $ ( 232) $ ( 294) Remove impact of Retroactive Reinsurance Amortization of deferred gain at inception 232 Prior year development ceded under the Asbestos LPT ( 1) Prior year development ceded under the ADC ( 277) Total, prior years, excluding discount and amortization of deferred gain $ ( 340) (a) Change in net ultimate loss and LAE excludes the portion of prior year development for which we have ceded to the Asbestos Loss Portfolio Transfer (LPT) and the ADC, both of which are provided by NICO and are considered retroactive reinsurance under U.S. GAAP. Amounts shown exclude $ 30 million of pre-acquisition prior year development from Validus. Validus' pre-acquisition development is included in the 10-year triangles shown above but is not included in AIG's financial results. (b) Reattribution of the ADC recovery takes place annually as we model the future payments on the subject reserves covered by the ADC to determine when the aggregate payments will exceed the attachment. ADC recoverables are then reallocated by line based on payments expected to be made after attachment point is exceeded. |
Schedule of development, (favorable) unfavorable, of incurred losses and loss adjustment expenses for accident year 2009 and prior by operating segment and major class of business | Years Ended December 31, (in millions) 2019 2018 2017 U.S. Workers' compensation (before discount) $ ( 210) $ 153 $ ( 7) U.S. Excess casualty 54 537 164 U.S. Other casualty ( 170) 129 ( 8) U.S. Financial Lines 11 ( 1) ( 34) U.S. Property and Special risks ( 3) 39 11 U.S. Personal Insurance 1 2 9 UK/Europe Casualty and Financial Lines 9 1 169 UK/Europe Property and Special risks ( 28) 3 ( 6) UK/Europe and Japan Personal Insurance - 9 3 U.S. Run-Off Long Tail Insurance Lines (before discount) ( 46) 154 ( 44) All Other including unallocated loss adjustment expenses 116 137 178 Total prior year (favorable) unfavorable development $ ( 266) $ 1,163 $ 435 |
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 13.8 % 17.4 % 12.5 % 8.5 % 6.9 % 4.6 % 3.3 % 2.3 % 1.7 % 1.5 % U.S. Excess casualty 0.7 8.2 11.3 14.2 12.8 11.1 8.2 8.3 2.7 1.4 U.S. Other casualty 8.6 14.8 15.5 15.1 12.5 8.6 6.1 3.2 3.2 1.6 U.S. Financial Lines 4.2 18.0 21.6 16.7 13.1 8.7 5.4 5.0 1.4 1.7 U.S. Property and Special risks 30.6 35.2 13.5 8.0 5.2 3.7 1.5 1.0 0.7 0.5 U.S. Personal Insurance 58.6 29.8 5.1 2.1 1.2 0.6 0.3 0.2 0.1 0.1 UK/Europe Casualty and Financial Lines 7.9 16.9 13.6 13.0 9.9 7.7 6.7 4.3 2.5 3.8 UK/Europe Property and Special risks 25.1 39.4 17.2 6.7 2.9 1.9 0.7 0.6 0.4 ( 0.9) UK/Europe and Japan Personal Insurance 57.1 27.4 7.9 3.9 1.9 1.0 0.6 0.3 0.2 0.2 U.S. Run-Off Long Tail Insurance Lines 14.2 18.4 16.6 13.8 9.0 5.1 3.7 1.5 2.2 2.5 |
Schedule of components of the loss reserve discount | December 31, 2019 December 31, 2018 North America North America Commercial Legacy Commercial Legacy (in millions) Insurance Portfolio Total Insurance Portfolio Total U.S. workers' compensation $ 2,134 $ 666 $ 2,800 $ 2,782 $ 973 $ 3,755 Retroactive reinsurance ( 1,251) - ( 1,251) ( 1,720) - ( 1,720) Total reserve discount * $ 883 $ 666 $ 1,549 $ 1,062 $ 973 $ 2,035 * Excludes $ 172 million and $ 163 million of discount related to certain long tail liabilities in the United Kingdom at December 31, 2019 and 2018, respectively. |
Schedule of loss reserve discount and loss reserve discount benefit (charge) | Years Ended December 31, 2019 2018 2017 North North North America America America Commercial Legacy Commercial Legacy Commercial Legacy (in millions) Insurance Portfolio Total Insurance Portfolio Total Insurance Portfolio Total Current accident year $ 108 $ - $ 108 $ 119 $ - $ 119 $ 114 $ - $ 114 Accretion and other adjustments to prior year discount ( 229) ( 87) ( 316) ( 108) ( 58) ( 166) ( 186) ( 44) ( 230) Effect of interest rate changes ( 527) ( 220) ( 747) 305 113 418 ( 46) ( 25) ( 71) Net reserve discount benefit (charge) ( 648) ( 307) ( 955) 316 55 371 ( 118) ( 69) ( 187) Change in discount on loss reserves ceded under retroactive reinsurance 469 - 469 ( 180) - ( 180) ( 1,539) - ( 1,539) Net change in total reserve discount * $ ( 179) $ ( 307) $ ( 486) $ 136 $ 55 $ 191 $ ( 1,657) $ ( 69) $ ( 1,726) * Excludes $ 9 million and $( 9) million of discount related to certain long tail liabilities in the United Kingdom at December 31, 2019 and 2018, respectively. |
Schedule of policyholder contract deposits by product type | At December 31, (in millions) 2019 2018 Policyholder contract deposits: Fixed Annuities $ 50,452 $ 49,695 Group Retirement 42,207 41,212 Life Insurance 13,930 12,829 Variable and Index Annuities 30,878 24,378 Institutional Markets 9,929 9,497 Legacy Portfolio 4,473 4,651 Total Policyholder contract deposits $ 151,869 $ 142,262 |
Schedule of universal life policies with secondary guarantees | Years Ended December 31, (in millions) 2019 2018 2017 Balance, beginning of year $ 2,640 $ 2,351 $ 2,095 Incurred guaranteed benefits * 514 758 705 Paid guaranteed benefits ( 469) ( 469) ( 449) Balance, end of year $ 2,685 $ 2,640 $ 2,351 * Incurred guaranteed benefits include the portion of assessments established as additions to reserves as well as changes in estimates (assumption unlockings) affecting these reserves. |
Schedule of details concerning universal life policies with secondary guarantees | At December 31, (dollars in millions) 2019 2018 Account value $ 2,850 $ 2,665 Net amount at risk 59,924 54,161 Average attained age of contract holders 54 55 |
U.S. Workers Compensation | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2019 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2010 $ 2,706 $ 3,049 $ 3,125 $ 3,148 $ 3,211 $ 3,214 $ 3,286 $ 3,267 $ 3,278 $ 3,238 $ ( 40) $ 334 133,623 $ ( 437) $ ( 276) $ 2,801 $ 58 2011 2,901 2,953 3,091 3,158 3,113 3,152 3,156 3,177 3,141 ( 36) 414 125,122 ( 458) ( 311) 2,683 103 2012 2,382 2,194 2,286 2,260 2,334 2,308 2,259 2,247 ( 12) 380 71,128 ( 443) ( 307) 1,804 73 2013 1,932 1,880 1,950 2,060 2,032 1,974 1,916 ( 58) 353 47,066 ( 458) ( 311) 1,458 42 2014 1,729 1,764 1,866 1,862 1,794 1,709 ( 85) 397 40,075 ( 380) ( 238) 1,329 159 2015 1,708 1,864 1,866 1,814 1,722 ( 92) 558 35,838 ( 588) ( 442) 1,134 116 2016 1,299 1,346 1,318 1,140 ( 178) 403 30,588 - - 1,140 403 2017 789 850 776 ( 74) 352 26,538 - - 776 352 2018 998 1,021 23 641 21,034 - - 1,021 641 2019 887 639 13,919 - - 887 639 Total $ 17,797 $ ( 552) $ ( 2,764) $ $ 15,033 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 11,354) - - ( 11,354) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2010, net of reinsurance 4,505 ( 210) ( 2,971) 1,534 Unallocated loss adjustment expense prior year development 63 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 10,948 $ ( 699) $ ( 5,735) $ $ 5,213 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Change in Incurred Loss and ALAE Accident Year 2016 2017 2018 2019 Unaudited 2010 $ 2,822 $ 2,818 $ 2,811 $ 2,801 $ ( 10) 2011 2,676 2,677 2,682 2,683 1 2012 1,819 1,814 1,793 1,804 11 2013 1,500 1,494 1,481 1,458 ( 23) 2014 1,311 1,310 1,309 1,329 20 2015 1,279 1,279 1,318 1,134 ( 184) 2016 1,299 1,346 1,318 1,140 ( 178) 2017 - 789 850 776 ( 74) 2018 - - 998 1,021 23 2019 - - - 887 - Total $ 12,706 $ 13,527 $ 14,560 $ 15,033 $ ( 414) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below - - ( 11,354) - Liabilities for losses and allocated loss adjustment expenses before 2010, net of reinsurance - 1,588 1,534 ( 54) Unallocated loss adjustment expense prior year development - - - 276 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ $ 5,213 $ ( 192) The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Change in Incurred Loss and ALAE Accident Year 2016 2017 2018 2019 Unaudited 2010 $ ( 464) $ ( 449) $ ( 467) $ ( 437) $ 30 2011 ( 476) ( 479) ( 495) ( 458) 37 2012 ( 515) ( 494) ( 466) ( 443) 23 2013 ( 560) ( 538) ( 493) ( 458) 35 2014 ( 555) ( 552) ( 485) ( 380) 105 2015 ( 585) ( 587) ( 496) ( 588) ( 92) 2016 - - - - - 2017 - - - - - 2018 - - - - - 2019 - - - - - Total $ ( 3,155) $ ( 3,099) $ ( 2,902) $ ( 2,764) $ 138 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below - - - Liabilities for losses and allocated loss adjustment expenses before 2010, net of reinsurance - ( 3,127) ( 2,971) 156 Unallocated loss adjustment expense prior year development 213 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance ( 6,029) $ ( 5,735) $ 507 |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2010 $ 550 $ 1,093 $ 1,537 $ 1,855 $ 2,126 $ 2,288 $ 2,426 $ 2,532 $ 2,597 $ 2,647 $ - 2011 519 1,129 1,561 1,884 2,129 2,285 2,388 2,451 2,496 - 2012 415 804 1,089 1,272 1,440 1,563 1,632 1,669 - 2013 282 619 879 1,067 1,214 1,287 1,335 - 2014 231 558 786 930 1,030 1,096 - 2015 234 524 725 854 925 - 2016 147 378 521 584 - 2017 93 224 294 - 2018 85 215 - 2019 93 - Total $ 11,354 $ - |
U.S. Excess Casualty | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2019 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2010 $ 1,888 $ 2,097 $ 2,093 $ 1,784 $ 1,650 $ 1,739 $ 1,723 $ 1,708 $ 1,681 $ 1,638 $ ( 43) $ 308 3,727 $ ( 252) $ ( 201) $ 1,386 $ 107 2011 1,787 1,827 1,597 1,429 1,529 1,611 1,627 1,726 1,758 32 381 3,726 ( 342) ( 272) 1,416 109 2012 1,607 1,403 1,242 1,488 1,537 1,486 1,558 1,502 ( 56) 312 3,688 ( 288) ( 229) 1,214 83 2013 1,123 1,035 1,169 1,308 1,241 1,282 1,292 10 271 3,102 ( 260) ( 197) 1,032 74 2014 938 1,069 1,275 1,260 1,339 1,283 ( 56) 466 2,632 ( 439) ( 360) 844 106 2015 989 1,463 1,440 1,603 1,656 53 444 2,544 ( 493) ( 392) 1,163 52 2016 898 1,146 1,162 1,171 9 514 1,980 - - 1,171 514 2017 856 1,002 1,097 95 542 1,241 - - 1,097 542 2018 648 646 ( 2) 404 618 - - 646 404 2019 577 547 370 - - 577 547 Total $ 12,620 $ 42 $ ( 2,074) $ $ 10,546 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 6,799) - - ( 6,799) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2010, net of reinsurance 2,243 54 ( 1,705) 538 Unallocated loss adjustment expense prior year development ( 20) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 8,064 $ 76 $ ( 3,779) $ $ 4,285 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Change in Incurred Loss and ALAE Accident Year 2016 2017 2018 2019 Unaudited 2010 $ 1,452 $ 1,448 $ 1,426 $ 1,386 $ ( 40) 2011 1,369 1,371 1,436 1,416 ( 20) 2012 1,175 1,163 1,254 1,214 ( 40) 2013 935 932 981 1,032 51 2014 902 905 915 844 ( 71) 2015 1,027 1,015 1,139 1,163 24 2016 898 1,146 1,162 1,171 9 2017 - 856 1,002 1,097 95 2018 - - 648 646 ( 2) 2019 - - - 577 - Total $ 7,758 $ 8,836 $ 9,963 $ 10,546 $ 6 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 6,799) - Liabilities for losses and allocated loss adjustment expenses before 2010, net of reinsurance 612 538 ( 74) Unallocated loss adjustment expense prior year development - 94 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 4,285 $ 26 The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Change in Incurred Loss and ALAE Accident Year 2016 2017 2018 2019 Unaudited 2010 $ ( 271) $ ( 260) $ ( 255) $ ( 252) $ 3 2011 ( 242) ( 256) ( 290) ( 342) ( 52) 2012 ( 362) ( 323) ( 304) ( 288) 16 2013 ( 373) ( 309) ( 301) ( 260) 41 2014 ( 373) ( 355) ( 424) ( 439) ( 15) 2015 ( 436) ( 425) ( 464) ( 493) ( 29) 2016 - - - - - 2017 - - - - - 2018 - - - - - 2019 - - - - - Total $ ( 2,057) $ ( 1,928) $ ( 2,038) $ ( 2,074) $ ( 36) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below - - Liabilities for losses and allocated loss adjustment expenses before 2010, net of reinsurance - ( 1,577) ( 1,705) ( 128) Unallocated loss adjustment expense prior year development 114 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance ( 3,615) $ ( 3,779) $ ( 50) |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2010 $ 10 $ 197 $ 475 $ 654 $ 795 $ 946 $ 1,052 $ 1,217 $ 1,265 $ 1,288 $ - 2011 5 63 225 387 716 921 1,069 1,214 1,257 - 2012 3 106 288 495 649 887 1,022 1,121 - 2013 15 105 207 387 578 705 819 - 2014 3 77 240 444 590 703 - 2015 9 210 391 718 935 - 2016 28 80 204 388 - 2017 1 45 156 - 2018 1 125 - 2019 7 - Total $ 6,799 $ - |
U.S. Other Casualty | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2019 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2010 $ 2,124 $ 2,102 $ 2,235 $ 2,185 $ 2,335 $ 2,381 $ 2,501 $ 2,492 $ 2,504 $ 2,505 $ 1 $ 225 96,534 $ ( 130) $ ( 103) $ 2,375 $ 122 2011 2,033 2,202 2,302 2,439 2,585 2,620 2,582 2,517 2,515 ( 2) 126 75,391 ( 139) ( 110) 2,376 16 2012 1,986 2,139 2,193 2,203 2,352 2,407 2,343 2,328 ( 15) 190 42,048 ( 169) ( 135) 2,159 55 2013 1,653 1,729 1,912 2,148 2,185 2,164 2,211 47 286 37,117 ( 263) ( 219) 1,948 67 2014 1,751 1,721 1,963 2,009 1,910 1,916 6 230 35,730 ( 222) ( 177) 1,694 53 2015 1,329 1,762 1,829 1,736 1,794 58 259 33,313 ( 301) ( 229) 1,493 30 2016 1,339 1,343 1,321 1,391 70 513 26,834 - - 1,391 513 2017 602 629 738 109 411 20,255 - - 738 411 2018 802 845 43 621 15,010 - - 845 621 2019 1,059 935 15,546 - - 1,059 935 Total $ 17,302 $ 317 $ ( 1,224) $ $ 16,078 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 12,454) - - ( 12,454) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2010, net of reinsurance 1,392 ( 170) ( 952) 440 Unallocated loss adjustment expense prior year development 21 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 6,240 $ 168 $ ( 2,176) $ $ 4,064 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Change in Incurred Loss and ALAE Accident Year 2016 2017 2018 2019 Unaudited 2010 $ 2,361 $ 2,359 $ 2,349 $ 2,375 $ 26 2011 2,398 2,395 2,414 2,376 ( 38) 2012 2,189 2,197 2,175 2,159 ( 16) 2013 1,948 1,960 1,929 1,948 19 2014 1,667 1,678 1,634 1,694 60 2015 1,361 1,373 1,423 1,493 70 2016 1,339 1,343 1,321 1,391 70 2017 - 602 629 738 109 2018 - - 802 845 43 2019 - - - 1,059 - Total $ 13,263 $ 13,907 $ 14,676 $ 16,078 $ 343 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 12,454) - Liabilities for losses and allocated loss adjustment expenses before 2010, net of reinsurance - 685 440 ( 245) Unallocated loss adjustment expense prior year development - 90 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 4,064 $ 188 The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Change in Incurred Loss and ALAE Accident Year 2016 2017 2018 2019 Unaudited 2010 $ ( 140) $ ( 133) $ ( 155) $ ( 130) $ 25 2011 ( 222) ( 187) ( 103) ( 139) ( 36) 2012 ( 163) ( 210) ( 168) ( 169) ( 1) 2013 ( 200) ( 225) ( 235) ( 263) ( 28) 2014 ( 296) ( 331) ( 276) ( 222) 54 2015 ( 401) ( 456) ( 313) ( 301) 12 2016 - - - - - 2017 - - - - - 2018 - - - - - 2019 - - - - - Total $ ( 1,422) $ ( 1,542) $ ( 1,250) $ ( 1,224) $ 26 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below - - Liabilities for losses and allocated loss adjustment expenses before 2010, net of reinsurance - ( 878) ( 952) ( 74) Unallocated loss adjustment expense prior year development 69 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance ( 2,128) $ ( 2,176) $ 21 |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2010 $ 295 $ 661 $ 985 $ 1,358 $ 1,640 $ 1,824 $ 1,972 $ 2,087 $ 2,196 $ 2,236 $ - 2011 235 722 1,102 1,481 1,814 2,039 2,210 2,289 2,339 - 2012 411 739 1,042 1,385 1,677 1,869 2,009 2,053 - 2013 169 594 962 1,248 1,485 1,688 1,809 - 2014 210 620 868 1,150 1,392 1,572 - 2015 105 309 769 1,087 1,351 - 2016 77 298 489 703 - 2017 51 111 216 - 2018 43 122 - 2019 53 - Total $ 12,454 $ - |
U.S. Financial Lines | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2019 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2010 $ 1,584 $ 1,525 $ 1,423 $ 1,383 $ 1,374 $ 1,470 $ 1,509 $ 1,535 $ 1,542 $ 1,544 $ 2 $ 64 20,165 $ ( 55) $ ( 44) $ 1,489 $ 20 2011 1,844 1,765 1,934 1,925 1,960 1,991 2,023 2,015 2,012 ( 3) 63 20,063 ( 54) ( 43) 1,958 20 2012 1,592 1,763 1,800 1,907 1,988 1,990 2,015 2,077 62 115 20,076 ( 115) ( 92) 1,962 23 2013 1,790 1,719 1,670 1,613 1,555 1,497 1,509 12 122 19,126 ( 100) ( 80) 1,409 42 2014 1,812 1,777 1,892 1,927 1,960 1,981 21 241 17,581 ( 240) ( 199) 1,741 42 2015 1,737 1,762 1,743 1,788 1,830 42 248 16,156 ( 278) ( 213) 1,552 35 2016 1,605 1,855 1,993 2,064 71 380 16,000 - - 2,064 380 2017 1,564 1,675 1,756 81 617 14,939 - - 1,756 617 2018 1,640 1,766 126 1,017 14,349 - - 1,766 1,017 2019 1,503 1,315 11,784 - - 1,503 1,315 Total $ 18,042 $ 414 $ ( 842) $ $ 17,200 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 12,065) - - ( 12,065) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2010, net of reinsurance 154 11 ( 135) 19 Unallocated loss adjustment expense prior year development 38 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 6,131 $ 463 $ ( 977) $ $ 5,154 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Change in Incurred Loss and ALAE Accident Year 2016 2017 2018 2019 Unaudited 2010 $ 1,499 $ 1,504 $ 1,505 $ 1,489 $ ( 16) 2011 1,966 1,973 1,989 1,958 ( 31) 2012 1,906 1,907 1,925 1,962 37 2013 1,442 1,429 1,408 1,409 1 2014 1,733 1,729 1,753 1,741 ( 12) 2015 1,429 1,430 1,462 1,552 90 2016 1,605 1,855 1,993 2,064 71 2017 - 1,564 1,675 1,756 81 2018 - - 1,640 1,766 126 2019 - - - 1,503 - Total $ 11,580 $ 13,391 $ 15,350 $ 17,200 $ 347 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 12,065) - Liabilities for losses and allocated loss adjustment expenses before 2010, net of reinsurance - 99 19 ( 80) Unallocated loss adjustment expense prior year development - 59 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 5,154 $ 326 The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Change in Incurred Loss and ALAE Accident Year 2016 2017 2018 2019 Unaudited 2010 $ ( 10) $ ( 31) $ ( 37) $ ( 55) $ ( 18) 2011 ( 25) ( 50) ( 26) ( 54) ( 28) 2012 ( 82) ( 83) ( 90) ( 115) ( 25) 2013 ( 171) ( 126) ( 89) ( 100) ( 11) 2014 ( 159) ( 198) ( 207) ( 240) ( 33) 2015 ( 333) ( 313) ( 326) ( 278) 48 2016 - - - - - 2017 - - - - - 2018 - - - - - 2019 - - - - - Total $ ( 780) $ ( 801) $ ( 775) $ ( 842) $ ( 67) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below - - Liabilities for losses and allocated loss adjustment expenses before 2010, net of reinsurance - ( 45) ( 135) ( 90) Unallocated loss adjustment expense prior year development 21 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance ( 820) $ ( 977) $ ( 136) |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2010 $ 31 $ 278 $ 558 $ 793 $ 1,009 $ 1,172 $ 1,273 $ 1,354 $ 1,394 $ 1,420 $ - 2011 165 494 886 1,210 1,529 1,752 1,885 1,912 1,918 - 2012 73 403 812 1,250 1,494 1,622 1,687 1,859 - 2013 41 327 682 945 1,139 1,235 1,314 - 2014 66 366 849 1,158 1,387 1,573 - 2015 63 390 791 1,055 1,282 - 2016 73 499 1,002 1,358 - 2017 64 391 761 - 2018 86 486 - 2019 94 - Total $ 12,065 $ - |
U.S. Personal Insurance | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2019 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2010 $ 1,843 $ 1,809 $ 1,819 $ 1,819 $ 1,820 $ 1,819 $ 1,817 $ 1,817 $ 1,815 $ 1,815 $ - $ 1 422,774 $ ( 1) $ ( 1) $ 1,814 $ - 2011 1,886 1,908 1,896 1,891 1,890 1,886 1,881 1,879 1,878 ( 1) 1 413,127 ( 1) ( 1) 1,877 - 2012 2,208 2,128 2,109 2,083 2,077 2,094 2,095 2,099 4 1 403,920 ( 1) ( 1) 2,098 - 2013 1,887 1,816 1,803 1,782 1,780 1,776 1,777 1 1 335,158 ( 1) ( 1) 1,776 - 2014 1,552 1,562 1,572 1,572 1,583 1,584 1 4 274,703 ( 4) ( 3) 1,580 1 2015 1,511 1,498 1,494 1,483 1,482 ( 1) 9 260,468 ( 6) ( 5) 1,476 4 2016 1,536 1,533 1,533 1,540 7 23 246,354 - - 1,540 23 2017 2,028 2,287 2,161 ( 126) 114 217,752 - - 2,161 114 2018 2,188 2,193 5 229 97,349 - - 2,193 229 2019 1,593 470 68,057 - - 1,593 470 Total $ 18,122 $ ( 110) $ ( 14) $ 18,108 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 16,744) - - ( 16,744) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2010, net of reinsurance ( 71) 1 ( 6) ( 77) Unallocated loss adjustment expense prior year development 13 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 1,307 $ ( 96) $ ( 20) $ 1,287 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Change in Incurred Loss and ALAE Accident Year 2016 2017 2018 2019 Unaudited 2010 $ 1,816 $ 1,816 $ 1,814 $ 1,814 $ - 2011 1,881 1,880 1,878 1,877 ( 1) 2012 2,088 2,091 2,093 2,098 5 2013 1,774 1,774 1,774 1,776 2 2014 1,564 1,564 1,571 1,580 9 2015 1,476 1,475 1,472 1,476 4 2016 1,536 1,533 1,533 1,540 7 2017 - 2,028 2,287 2,161 ( 126) 2018 - - 2,188 2,193 5 2019 - - - 1,593 - Total $ 12,135 $ 14,161 $ 16,610 $ 18,108 $ ( 95) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 16,744) - Liabilities for losses and allocated loss adjustment expenses before 2010, net of reinsurance - ( 72) ( 77) ( 5) Unallocated loss adjustment expense prior year development - 15 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 1,287 $ ( 85) The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Change in Incurred Loss and ALAE Accident Year 2016 2017 2018 2019 Unaudited 2010 $ ( 1) $ ( 1) $ ( 1) $ ( 1) $ - 2011 ( 5) ( 1) ( 1) ( 1) - 2012 11 ( 3) ( 2) ( 1) 1 2013 ( 8) ( 6) ( 2) ( 1) 1 2014 ( 8) ( 8) ( 12) ( 4) 8 2015 ( 22) ( 19) ( 11) ( 6) 5 2016 - - - - - 2017 - - - - - 2018 - - - - - 2019 - - - - - Total $ ( 33) $ ( 38) $ ( 29) $ ( 14) $ 15 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below - - Liabilities for losses and allocated loss adjustment expenses before 2010, net of reinsurance - ( 3) ( 6) ( 3) Unallocated loss adjustment expense prior year development 2 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance ( 32) $ ( 20) $ 14 |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2010 $ 1,205 $ 1,669 $ 1,736 $ 1,772 $ 1,794 $ 1,803 $ 1,808 $ 1,810 $ 1,812 $ 1,813 $ - 2011 1,204 1,752 1,814 1,840 1,860 1,869 1,873 1,874 1,875 - 2012 1,238 1,936 1,996 2,035 2,065 2,079 2,085 2,095 - 2013 1,109 1,634 1,705 1,744 1,759 1,766 1,772 - 2014 959 1,380 1,463 1,507 1,536 1,555 - 2015 931 1,320 1,411 1,439 1,455 - 2016 857 1,344 1,422 1,460 - 2017 941 1,672 1,896 - 2018 1,227 1,939 - 2019 884 - Total $ 16,744 $ - |
UK/Europe Casualty and Financial Lines | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance* Years Ended December 31, (in millions) December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2010 $ 1,303 $ 1,282 $ 1,303 $ 1,325 $ 1,273 $ 1,308 $ 1,288 $ 1,358 $ 1,339 $ 1,336 $ ( 3) $ 30 278,205 2011 1,257 1,212 1,288 1,336 1,424 1,432 1,479 1,456 1,453 ( 3) 53 267,537 2012 1,088 1,065 1,029 1,111 1,171 1,148 1,205 1,199 ( 6) 50 220,502 2013 1,041 1,082 1,063 1,044 1,079 1,114 1,171 57 87 187,469 2014 1,040 1,011 1,035 1,042 1,037 1,062 25 128 178,140 2015 1,097 1,236 1,279 1,176 1,237 61 251 192,412 2016 1,317 1,458 1,498 1,505 7 296 229,131 2017 1,349 1,326 1,286 ( 40) 500 245,792 2018 1,376 1,423 47 611 250,301 2019 1,301 936 210,025 Total $ 12,973 $ 145 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 7,417) - Liabilities for losses and loss adjustment expenses and prior year development before accident year 2010, net of reinsurance 678 9 Unallocated loss adjustment expense prior year development 7 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 6,234 $ 161 * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance* Years Ended December 31, (in millions) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited 2010 $ 130 $ 377 $ 584 $ 750 $ 882 $ 975 $ 1,039 $ 1,093 $ 1,111 $ 1,162 2011 125 345 522 757 899 1,021 1,129 1,193 1,245 2012 106 303 444 626 756 845 946 998 2013 90 338 487 627 741 856 930 2014 72 259 410 530 631 696 2015 71 240 433 569 685 2016 120 380 588 778 2017 97 282 449 2018 114 374 2019 100 Total $ 7,417 * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
UK/Europe Property and Special Risks | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance* Years Ended December 31, (in millions) December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2010 $ 1,475 $ 1,471 $ 1,396 $ 1,336 $ 1,313 $ 1,291 $ 1,289 $ 1,286 $ 1,272 $ 1,278 $ 6 $ 9 47,625 2011 1,383 1,336 1,222 1,188 1,158 1,146 1,143 1,134 1,131 ( 3) 10 48,985 2012 1,320 1,219 1,148 1,132 1,114 1,119 1,102 1,096 ( 6) ( 2) 44,096 2013 1,421 1,415 1,306 1,286 1,271 1,260 1,240 ( 20) 3 43,932 2014 1,474 1,499 1,479 1,469 1,478 1,452 ( 26) 16 52,060 2015 1,601 1,538 1,518 1,476 1,451 ( 25) 23 57,667 2016 1,558 1,704 1,697 1,702 5 31 59,637 2017 1,678 1,642 1,634 ( 8) 76 55,694 2018 1,650 1,654 4 148 45,564 2019 1,248 462 25,179 Total $ 13,886 $ ( 73) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 11,335) - Liabilities for losses and loss adjustment expenses and prior year development before accident year 2010, net of reinsurance 22 ( 28) Unallocated loss adjustment expense prior year development ( 7) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 2,573 $ ( 108) * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance* Years Ended December 31, (in millions) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited 2010 $ 424 $ 908 $ 1,086 $ 1,177 $ 1,215 $ 1,244 $ 1,253 $ 1,260 $ 1,266 $ 1,255 2011 336 772 966 1,040 1,065 1,082 1,090 1,098 1,101 2012 277 721 912 980 1,026 1,052 1,062 1,068 2013 331 815 1,042 1,118 1,168 1,189 1,197 2014 318 927 1,211 1,280 1,319 1,346 2015 347 931 1,215 1,328 1,351 2016 460 1,120 1,373 1,512 2017 355 966 1,237 2018 319 988 2019 280 Total $ 11,335 * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
UK/Europe and Japan Personal Insurance | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance* Years Ended December 31, (in millions) December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2010 $ 3,024 $ 3,072 $ 3,073 $ 3,061 $ 3,062 $ 3,057 $ 3,083 $ 3,063 $ 3,061 $ 3,061 $ - $ 3 1,820,113 2011 3,332 3,394 3,360 3,361 3,350 3,353 3,345 3,344 3,343 ( 1) 4 1,778,510 2012 2,933 2,916 2,897 2,882 2,891 2,881 2,877 2,876 ( 1) 5 1,730,216 2013 2,780 2,779 2,745 2,745 2,740 2,736 2,733 ( 3) 7 1,735,489 2014 2,738 2,748 2,730 2,727 2,718 2,718 - 10 1,793,862 2015 2,806 2,780 2,783 2,772 2,769 ( 3) 17 1,773,628 2016 2,755 2,748 2,734 2,726 ( 8) 31 1,798,299 2017 2,693 2,609 2,590 ( 19) 64 1,715,573 2018 3,396 3,312 ( 84) 196 1,848,711 2019 2,466 404 1,708,106 Total $ 28,594 $ ( 119) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 26,676) - Liabilities for losses and loss adjustment expenses and prior year development before accident year 2010, net of reinsurance 44 - Unallocated loss adjustment expense prior year development - Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 1,962 $ ( 119) * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance* Years Ended December 31, (in millions) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited 2010 $ 1,737 $ 2,547 $ 2,796 $ 2,908 $ 2,967 $ 3,001 $ 3,021 $ 3,032 $ 3,040 $ 3,047 2011 2,031 2,846 3,085 3,200 3,264 3,293 3,310 3,320 3,325 2012 1,642 2,402 2,634 2,743 2,800 2,830 2,848 2,856 2013 1,527 2,279 2,500 2,608 2,665 2,695 2,709 2014 1,498 2,253 2,478 2,590 2,648 2,672 2015 1,516 2,291 2,516 2,637 2,681 2016 1,517 2,254 2,475 2,582 2017 1,482 2,208 2,401 2018 1,895 2,920 2019 1,483 Total $ 26,676 * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
U.S. Run-Off Long Tail Insurance Lines | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance* Years Ended December 31, (in millions) December 31, 2019 Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2010 $ 640 $ 528 $ 534 $ 557 $ 585 $ 582 $ 611 $ 565 $ 559 $ 563 $ 4 $ 55 8,556 2011 534 542 576 641 676 685 700 687 694 7 87 7,826 2012 629 678 741 786 751 752 702 692 ( 10) 37 4,082 2013 482 533 589 570 528 511 507 ( 4) 11 2,568 2014 379 475 453 459 383 375 ( 8) 64 2,370 2015 439 523 550 503 504 1 101 2,397 2016 294 285 274 269 ( 5) 55 1,684 2017 197 238 232 ( 6) 130 648 2018 76 119 43 59 307 2019 69 42 127 Total $ 4,024 $ 22 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 2,951) - Liabilities for losses and loss adjustment expenses and prior year development before accident year 2010, net of reinsurance 3,362 ( 46) Unallocated loss adjustment expense prior year development 20 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 4,435 $ ( 4) * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance* Years Ended December 31, (in millions) Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited 2010 $ 57 $ 149 $ 243 $ 321 $ 404 $ 435 $ 455 $ 464 $ 473 $ 487 2011 21 140 259 385 449 532 549 559 578 2012 86 194 286 414 481 498 525 534 2013 87 154 261 321 368 390 414 2014 21 96 185 233 262 268 2015 35 132 238 320 337 2016 53 140 163 178 2017 13 59 84 2018 33 47 2019 24 Total $ 2,951 * The losses reported in the table are not covered by the Adverse Development Reinsurance Agreement. |
VARIABLE LIFE AND ANNUITY CON_2
VARIABLE LIFE AND ANNUITY CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 Equity funds $ 51,383 $ 43,059 Bond funds 7,881 7,231 Balanced funds 26,659 24,100 Money market funds 765 787 Total $ 86,688 $ 75,177 |
Schedule of details concerning entity's GMDB exposures, by benefit type | At December 31, 2019 2018 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 $ 98 $ 16 $ 89 $ 15 Net amount at risk 1 - 1 1 Average attained age of contract holders by product 65 71 63 68 Range of guaranteed minimum return rates 0.00%- 4.50% 0.00%- 4.50% |
Schedule of changes in GMDB liabilities for guarantees on variable contracts reflected in the general account | Years Ended December 31, (in millions) 2019 2018 2017 Balance, beginning of year $ 397 $ 352 $ 402 Reserve increase (decrease) 35 93 ( 14) Benefits paid ( 40) ( 43) ( 42) Changes in reserves related to unrealized appreciation of investments 15 ( 5) 6 Balance, end of year $ 407 $ 397 $ 352 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DEBT | |
Schedule of total debt outstanding | Balance at Balance at At December 31, 2019 Range of Maturity December 31, December 31, (in millions) Interest Rate(s) Date(s) 2019 2018 Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable 0% - 8.13% 2020 - 2097 $ 20,467 $ 20,853 Junior subordinated debt 4.88% - 8.63% 2037 - 2058 1,542 1,548 AIG Japan Holdings Kabushiki Kaisha 0.28% - 0.44% 2020 - 2021 344 331 AIGLH notes and bonds payable 6.63% - 7.50% 2025 - 2029 282 282 AIGLH junior subordinated debt 7.57% - 8.50% 2030 - 2046 361 361 Validus notes and bonds payable 8.88% 2040 353 359 Total AIG general borrowings 23,349 23,734 AIG borrowings supported by assets: (a) Series AIGFP matched notes and bonds payable 1.89% - 1.92% 2046 - 2047 21 21 GIAs, at fair value 1.79% - 7.62% 2020 - 2047 2,003 2,164 Notes and bonds payable, at fair value 0.50% - 10.37% 2030 - 2040 59 49 Total AIG borrowings supported by assets 2,083 2,234 Total debt issued or guaranteed by AIG 25,432 25,968 Other subsidiaries' notes, bonds, loans and mortgages payable - not guaranteed by AIG 2.76% - 3.86% 2020 - 2028 47 168 Total long-term debt 25,479 26,136 Debt of consolidated investment entities - not guaranteed by AIG (b) 0% - 9.31% 2020 - 2062 9,871 8,404 Total debt $ 35,350 $ 34,540 (a) AIG Parent guarantees all such debt, except for Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. Collateral posted to third parties was $ billion at both December 31, 2019 and December 31, 2018. This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties. (b) At December 31, 2019, includes debt of consolidated investment entities related to real estate investments of $ 3.2 billion, affordable housing partnership investments of $ 2.1 billion and other securitization vehicles of $ 4.6 billion. At December 31, 2018, includes debt of consolidated investment entities related to real estate investments of $ 3.7 billion, affordable housing partnership investments of $ 1.8 billion and other securitization vehicles of $ 2.9 billion. |
Maturities of long-term debt, excluding borrowings of debt of consolidated investments | December 31, 2019 Year Ending (in millions) Total 2020 2021 2022 2023 2024 Thereafter Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable $ 20,467 $ 1,346 $ 1,498 $ 1,511 $ 1,610 $ 998 $ 13,504 Junior subordinated debt 1,542 - - - - - 1,542 AIG Japan Holdings Kabushiki Kaisha 344 119 225 - - - - AIGLH notes and bonds payable 282 - - - - - 282 AIGLH junior subordinated debt 361 - - - - - 361 Validus notes and bonds payable 353 - - - - - 353 Total AIG general borrowings 23,349 1,465 1,723 1,511 1,610 998 16,042 AIG borrowings supported by assets: Series AIGFP matched notes and bonds payable 21 - - - - - 21 GIAs, at fair value 2,003 34 151 50 121 139 1,508 Notes and bonds payable, at fair value 59 - - - - - 59 Total AIG borrowings supported by assets 2,083 34 151 50 121 139 1,588 Total debt issued or guaranteed by AIG 25,432 1,499 1,874 1,561 1,731 1,137 17,630 Debt not guaranteed by AIG: Other subsidiaries' notes, bonds, loans and mortgages payable 47 37 2 1 1 1 5 Total debt not guaranteed by AIG 47 37 2 1 1 1 5 Total $ 25,479 $ 1,536 $ 1,876 $ 1,562 $ 1,732 $ 1,138 $ 17,635 |
Schedule of detail for uncollateralized and collateralized notes, bonds, loans and mortgages payable | Uncollateralized Collateralized At December 31, 2019 Notes/Bonds/Loans Loans and (in millions) Payable Mortgages Payable Total AIG general borrowings $ 344 $ - $ 344 Other subsidiaries' notes, bonds, loans and mortgages payable * 1 46 47 Total $ 345 $ 46 $ 391 * AIG does not guarantee any of these borrowings. |
Summary of Credit Facility | At December 31, 2019 Available Effective (in millions) Size Amount Expiration Date Syndicated Credit Facility $ 4,500 $ 4,500 June 2022 6/27/2017 |
CONTINGENCIES, COMMITMENTS AN_2
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
Future Undiscounted Cash Flows Under Operating Leases | (in millions) 2020 $ 250 2021 186 2022 108 2023 84 2024 64 Remaining years after 2024 165 Total $ 857 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EQUITY | |
Rollforward of common stock outstanding | Common Treasury Common Stock Stock Issued Stock Outstanding Year Ended December 31, 2017 Shares, beginning of year 1,906,671,492 ( 911,335,651) 995,335,841 Shares issued - 3,386,462 3,386,462 Shares repurchased - ( 99,677,646) ( 99,677,646) Shares, end of year 1,906,671,492 ( 1,007,626,835) 899,044,657 Year Ended December 31, 2018 Shares, beginning of year 1,906,671,492 ( 1,007,626,835) 899,044,657 Shares issued - 4,091,922 4,091,922 Shares repurchased - ( 36,527,150) ( 36,527,150) Shares, end of year 1,906,671,492 ( 1,040,062,063) 866,609,429 Year Ended December 31, 2019 Shares, beginning of year 1,906,671,492 ( 1,040,062,063) 866,609,429 Shares issued - 3,389,602 3,389,602 Shares repurchased - - - Shares, end of year 1,906,671,492 ( 1,036,672,461) 869,999,031 |
Dividends Paid | Dividends Paid Declaration Date Record Date Payment Date Per Common Share October 31, 2019 December 12, 2019 December 26, 2019 $ 0.32 August 7, 2019 September 17, 2019 September 30, 2019 0.32 May 6, 2019 June 14, 2019 June 28, 2019 0.32 February 13, 2019 March 15, 2019 March 29, 2019 0.32 October 31, 2018 December 12, 2018 December 26, 2018 0.32 August 2, 2018 September 17, 2018 September 28, 2018 0.32 May 2, 2018 June 14, 2018 June 28, 2018 0.32 February 8, 2018 March 15, 2018 March 29, 2018 0.32 November 2, 2017 December 8, 2017 December 22, 2017 0.32 August 2, 2017 September 15, 2017 September 29, 2017 0.32 May 3, 2017 June 14, 2017 June 28, 2017 0.32 February 14, 2017 March 15, 2017 March 29, 2017 0.32 |
Repurchases Of Common Stock and Warrant | Years Ended December 31, (in millions) 2019 2018 2017 Aggregate repurchases of common stock $ - $ 1,739 $ 6,275 Total number of common shares repurchased - 37 100 Aggregate repurchases of warrants $ - $ 11 $ 3 Total number of warrants repurchased * - 1 - * In 2019, we did not repurchase any warrants to purchase shares of AIG Common Stock. In 2017, we repurchased 185,000 warrants to purchase shares of AIG Common Stock. |
Accumulated Other Comprehensive Income (Loss) | Unrealized Appreciation Fair Value of (Depreciation) of Fixed Unrealized Liabilities Under Maturity Securities on Appreciation Foreign Retirement Fair Value Option Which Other-Than- (Depreciation) Currency Plan Attributable to Temporary Credit of All Other Translation Liabilities Changes in (in millions) Impairments Were Taken Investments Adjustments Adjustment Own Credit Risk Total Balance, January 1, 2017, net of tax $ 426 $ 6,405 $ ( 2,629) $ ( 972) $ - $ 3,230 Change in unrealized appreciation of investments 394 3,668 - - - 4,062 Change in deferred policy acquisition costs adjustment and other * 23 ( 1,282) - - - ( 1,259) Change in future policy benefits - ( 1,102) - - - ( 1,102) Change in foreign currency translation adjustments - - 547 - - 547 Change in net actuarial loss - - - 110 - 110 Change in prior service cost - - - 9 - 9 Change in deferred tax asset (liability) ( 50) 4 ( 8) ( 78) - ( 132) Total other comprehensive income 367 1,288 539 41 - 2,235 Noncontrolling interests - - - - - - Balance, December 31, 2017, net of tax $ 793 $ 7,693 $ ( 2,090) $ ( 931) $ - $ 5,465 Cumulative effect of change in accounting principles 169 ( 285) ( 284) ( 183) 7 ( 576) Change in unrealized depreciation of investments ( 1,320) ( 8,688) - - - ( 10,008) Change in deferred policy acquisition costs adjustment and other ( 57) 1,300 - - - 1,243 Change in future policy benefits - 1,711 - - - 1,711 Change in foreign currency translation adjustments - - ( 314) - - ( 314) Change in net actuarial loss - - - ( 23) - ( 23) Change in prior service credit - - - ( 4) - ( 4) Change in deferred tax asset (liability) 377 702 ( 35) 55 - 1,099 Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - 3 3 Total other comprehensive income (loss) ( 1,000) ( 4,975) ( 349) 28 3 ( 6,293) Noncontrolling interests - 7 2 - - 9 Balance, December 31, 2018, net of tax $ ( 38) $ 2,426 $ ( 2,725) $ ( 1,086) $ 10 $ ( 1,413) Change in unrealized appreciation of investments 842 13,333 - - - 14,175 Change in deferred policy acquisition costs adjustment and other * 15 ( 1,871) - - - ( 1,856) Change in future policy benefits - ( 4,462) - - - ( 4,462) Change in foreign currency translation adjustments - - 135 - - 135 Change in net actuarial loss - - - ( 58) - ( 58) Change in prior service credit - - - ( 2) - ( 2) Change in deferred tax asset (liability) ( 196) ( 1,311) ( 31) 24 - ( 1,514) Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - ( 3) ( 3) Total other comprehensive income (loss) 661 5,689 104 ( 36) ( 3) 6,415 Noncontrolling interests - 16 4 - - 20 Balance, December 31, 2019, net of tax $ 623 $ 8,099 $ ( 2,625) $ ( 1,122) $ 7 $ 4,982 * Includes net unrealized gains and losses attributable to businesses held for sale at December 31, 2019 and December 31, 2017. |
Other comprehensive income (loss) reclassification adjustments | Unrealized Appreciation Fair Value of (Depreciation) of Fixed Unrealized Liabilities Under Maturity Securities on Appreciation Foreign Retirement Fair Value Option Which Other-Than- (Depreciation) Currency Plan Attributable to Temporary Credit of All Other Translation Liabilities Changes in (in millions) Impairments Were Taken Investments Adjustments Adjustment Own Credit Risk Total December 31, 2017 Unrealized change arising during period $ 467 $ 2,052 $ 547 $ 24 $ - $ 3,090 Less: Reclassification adjustments included in net income 50 768 - ( 95) - 723 Total other comprehensive income, before income tax expense (benefit) 417 1,284 547 119 - 2,367 Less: Income tax expense (benefit) 50 ( 4) 8 78 - 132 Total other comprehensive income, net of income tax expense (benefit) $ 367 $ 1,288 $ 539 $ 41 $ - $ 2,235 December 31, 2018 Unrealized change arising during period $ ( 1,372) ( 5,811) ( 314) ( 61) 3 $ ( 7,555) Less: Reclassification adjustments included in net income 5 ( 134) - ( 34) - ( 163) Total other comprehensive income (loss), before income tax expense (benefit) ( 1,377) ( 5,677) ( 314) ( 27) 3 ( 7,392) Less: Income tax expense (benefit) ( 377) ( 702) 35 ( 55) - ( 1,099) Total other comprehensive income (loss), net of income tax expense (benefit) $ ( 1,000) $ ( 4,975) $ ( 349) $ 28 $ 3 $ ( 6,293) December 31, 2019 Unrealized change arising during period $ 853 $ 7,324 $ 135 $ ( 97) $ ( 3) $ 8,212 Less: Reclassification adjustments included in net income ( 4) 324 - ( 37) - 283 Total other comprehensive income (loss), before income tax expense (benefit) 857 7,000 135 ( 60) ( 3) 7,929 Less: Income tax expense (benefit) 196 1,311 31 ( 24) - 1,514 Total other comprehensive income (loss), net of income tax expense (benefit) $ 661 $ 5,689 $ 104 $ ( 36) $ ( 3) $ 6,415 |
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) 2019 2018 2017 Consolidated Statements of Income Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken Investments $ ( 4) $ 5 $ 50 Other realized capital gains Total ( 4) 5 50 Unrealized appreciation (depreciation) of all other investments Investments 324 ( 134) 463 Other realized capital gains Deferred acquisition costs adjustment - - 305 Amortization of deferred policy acquisition costs Future policy benefits - - - Policyholder benefits and losses incurred Total 324 ( 134) 768 Change in retirement plan liabilities adjustment Prior-service credit - 1 5 * Actuarial losses ( 37) ( 35) ( 100) * Total ( 37) ( 34) ( 95) Total reclassifications for the year $ 283 $ ( 163) $ 723 * These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. For additional information see Note 22 herein. |
EARNINGS PER COMMON SHARE (EP_2
EARNINGS PER COMMON SHARE (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE (EPS) | |
Computation of basic and diluted EPS | Years Ended December 31, (dollars in millions, except per common share data) 2019 2018 2017 Numerator for EPS: Income (loss) from continuing operations $ 4,121 $ 103 $ ( 6,060) Less: Net income from continuing operations attributable to noncontrolling interests 821 67 28 Less: Preferred stock dividends 22 - - Income (loss) attributable to AIG common shareholders from continuing operations 3,278 36 ( 6,088) Income (loss) from discontinued operations, net of income tax expense 48 ( 42) 4 Net income (loss) attributable to AIG common shareholders $ 3,326 $ ( 6) $ ( 6,084) Denominator for EPS: Weighted average common shares outstanding — basic 876,750,264 898,405,537 930,561,286 Dilutive common shares 12,761,682 11,735,705 - Weighted average common shares outstanding — diluted (a)(b) 889,511,946 910,141,242 930,561,286 Income (loss) per common share attributable to AIG common shareholders: Basic: Income (loss) from continuing operations $ 3.74 $ 0.04 $ ( 6.54) Income (loss) from discontinued operations $ 0.05 $ ( 0.05) $ - Income (loss) attributable to AIG common shareholders $ 3.79 $ ( 0.01) $ ( 6.54) Diluted: Income (loss) from continuing operations $ 3.69 $ 0.04 $ ( 6.54) Income (loss) from discontinued operations $ 0.05 $ ( 0.05) $ - Income (loss) attributable to AIG common shareholders $ 3.74 $ ( 0.01) $ ( 6.54) (a) Shares in the diluted EPS calculation represent basic shares for 2017 due to the net loss in that period. The number of common shares excluded from the calculation was 22,412,682 shares. (b) Dilutive shares included our share-based employee compensation plans and a weighted average portion of the 10-year warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011. The number of shares excluded from diluted shares outstanding were 20.0 million, 19.6 million and 1.7 million for the years ended December 31, 2019, 2018 and 2017, respectively, because the effect of including those shares in the calculation would have been anti-dilutive. |
STATUTORY FINANCIAL DATA AND _2
STATUTORY FINANCIAL DATA AND RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 2017 Years Ended December 31, Statutory net income (loss) (a)(b) General Insurance companies: Domestic $ 1,482 $ ( 1,030) $ ( 978) Foreign 1,382 558 ( 318) Total General Insurance companies $ 2,864 $ ( 472) $ ( 1,296) Life and Retirement companies: Domestic $ 310 $ 671 $ 1,066 Foreign 3,356 ( 553) 21 Total Life and Retirement companies $ 3,666 $ 118 $ 1,087 At December 31, Statutory capital and surplus (a)(b) General Insurance companies: Domestic $ 17,433 $ 17,435 Foreign 16,230 15,709 Total General Insurance companies $ 33,663 $ 33,144 Life and Retirement companies: Domestic $ 9,227 $ 9,454 Foreign 5,264 1,809 Total Life and Retirement companies $ 14,491 $ 11,263 Aggregate minimum required statutory capital and surplus: General Insurance companies: Domestic $ 4,178 $ 4,393 Foreign 8,645 8,456 Total General Insurance companies $ 12,823 $ 12,849 Life and Retirement companies: Domestic $ 3,383 $ 3,301 Foreign 1,229 1,159 Total Life and Retirement companies $ 4,612 $ 4,460 (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) The 2019 amounts reflect our best estimate of the statutory net income, capital and surplus as of the date of AIG’s Form 10-K filing. In aggregate, the 2018 General Insurance companies and Life and Retirement companies statutory net income increased by $ 1.1 billion and the 2018 General Insurance companies and Life and Retirement companies statutory capital and surplus decreased by $ 1.4 billion, compared to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2018, due to finalization of statutory filings and revision of prior period number presented herein. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION PLANS | |
Schedule of share-based compensation expense recognized in Consolidated Statements of Income | Years Ended December 31, (in millions) 2019 2018 2017 Share-based compensation expense - pre-tax (a) $ 314 $ 337 $ 353 Share-based compensation expense - after tax (b) 248 266 229 (a) As a result of accelerated vesting events, such as retirement eligibility in the year of grant and involuntary terminations, we recognized $ 82 million, $ 104 million and $ 196 million in 2019, 2018 and 2017, respectively, prior to the end of the specified vesting periods. It is our policy to reverse compensation expense for forfeited awards when they occur. (b) We also recognized $ 27 million of additional tax expense due to share settlements occurring in 2019. |
Schedule of assumptions used to estimate the fair value of PSUs based on AIG's TSR | 2017 Expected dividend yield (a) 2.37 % Expected volatility (b) 17.58 % Risk-free interest rate (c) 2.00 % (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 historical volatility of the stock price for the 360 most recent trading days prior to the valuation date estimated by Bloomberg Professional service . (c) The risk-free interest rate is the continuously compounded interest rate for the term between the valuation date and the end of the performance period that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the valuation date. |
Summary of outstanding share-settled LTI awards | Weighted Average As of or for the Year Number of Units Grant-Date Fair Value Ended December 31, 2019 (b) 2019 LTI 2018 LTI 2017 LTI 2016 LTI 2015 LTI 2019 LTI 2018 LTI 2017 LTI 2016 LTI 2015 LTI Unvested, beginning of year - 3,322,028 1,579,995 640,660 272,332 $ - $ 55.32 $ 62.32 $ 61.55 $ 60.51 Granted 6,185,729 5,499 - - - 44.81 47.57 - - - Vested (c) ( 1,445,746) ( 529,576) ( 540,580) 456,396 ( 250,708) 44.39 55.72 64.22 53.85 60.51 Forfeited (d) ( 216,085) ( 140,957) ( 1,039,415) ( 873,692) ( 21,624) 44.28 55.47 64.97 50.88 60.40 Unvested, end of year (e) 4,523,898 2,656,994 - 223,364 - $ 44.98 $ 55.21 $ - $ 62.14 $ - (a) Excludes stock options, other RSUs and DSUs, which are discussed under Stock Options, Other RSU Grants and Non-Employee Plan, respectively. (b) Except for the 2015 LTI, 2016 LTI and 2017 LTI awards, PSUs represent target amount 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 by the CMRC in the quarter after the applicable performance period ends. (c) Also reflects units that vest as a result of an accelerated vesting event that occurred prior to the specified vesting date. (d) Includes PSUs for which the performance metric was not met at the end of the performance period. (e) At December 31, 2019, the total unrecognized compensation cost for outstanding RSUs and PSUs was $ 203 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 0.96 year and 2 years. Stock Options |
Schedule of weighted-average assumptions | The following weighted-average assumptions were used for stock options granted: 2019 2018 2017 Expected annual dividend yield (a) 2.86 % 2.32 % 2.03 % Expected volatility (b) 23.17 % 23.29 % 20.96 % Risk-free interest rate (c) 2.47 % 2.83 % 1.94 % Expected term (d) 6.38 years 4.50 - 6.47 years 4.5 years (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 volatility of 24 months stock option estimated by the Bloomberg Professional service as of the valuation date. (c) The risk-free interest rate is the continuously compounded interest rate for the term between the valuation date and the expiration date that is assumed to be constant and equal to the interpolated value between the closet data points on the U.S. dollar LIBOR-swap curve as of the valuation date. (d) The contractual terms are 7 and 10 years from the date of grant. |
Schedule of stock option activity | The following table provides a rollforward of stock option activity: Weighted Average Aggregate As of or for the Year Weighted Average Remaining Intrinsic Values Ended December 31, 2019 Units Exercise Price Contractual Life (in millions) Outstanding, beginning of year 5,205,799 $ 58.99 7.38 Granted 3,235,290 44.89 Exercised ( 36,194) 47.61 Forfeited or expired ( 39,004) 44.28 Outstanding, end of year 8,365,891 $ 53.66 7.65 $ 22 Exercisable, end of year 1,330,226 $ 57.28 3.53 $ 1 |
Summary of outstanding share-settled RSU grants | Weighted Average As of or for the Year Number of Units Grant-Date Fair Value Ended December 31, 2019 2018 2017 2019 2018 2017 Unvested, beginning of year 1,634,610 595,250 - $ 56.11 $ 62.93 $ - Granted 399,779 1,385,929 869,241 52.40 54.07 63.02 Vested ( 774,350) ( 342,481) ( 273,991) 57.32 59.68 63.21 Forfeited ( 28,854) ( 4,088) - 55.23 60.31 - Unvested, end of year 1,231,185 1,634,610 595,250 $ 54.17 $ 56.11 $ 62.93 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 (a)(b) Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (in millions) 2019 2018 2019 2018 2019 2018 2019 2018 Change in projected benefit obligation: Benefit obligation, beginning of year $ 4,553 $ 5,091 $ 1,138 $ 1,202 $ 172 $ 190 $ 50 $ 63 Service cost 5 5 21 22 1 1 1 1 Interest cost 176 162 15 16 6 6 2 2 Actuarial (gain) loss 536 ( 383) 91 ( 28) 15 ( 10) 8 ( 14) Benefits paid: AIG assets ( 18) ( 16) ( 8) ( 9) ( 13) ( 15) ( 1) ( 1) Plan assets ( 279) ( 306) ( 33) ( 32) - - - - Plan amendment - - - 3 - - - - Curtailments - - ( 2) - - - - - Settlements - - ( 67) ( 5) - - - - Foreign exchange effect - - 18 ( 31) - - 1 ( 1) Other ( 1) - 1 - - - - - Projected benefit obligation, end of year $ 4,972 $ 4,553 $ 1,174 $ 1,138 $ 181 $ 172 $ 61 $ 50 Change in plan assets: Fair value of plan assets, beginning of year $ 3,840 $ 4,350 $ 861 $ 875 $ - $ - $ - $ - Actual return on plan assets, net of expenses 744 ( 204) 64 6 - - - - AIG contributions 178 16 63 51 13 15 1 1 Benefits paid: AIG assets ( 18) ( 16) ( 8) ( 9) ( 13) ( 15) ( 1) ( 1) Plan assets ( 279) ( 306) ( 33) ( 32) - - - - Settlements - - ( 67) ( 5) - - - - Foreign exchange effect - - 19 ( 25) - - - - Other - - - - - - - - Fair value of plan assets, end of year $ 4,465 $ 3,840 $ 899 $ 861 $ - $ - $ - $ - Funded status, end of year $ ( 507) $ ( 713) $ ( 275) $ ( 277) $ ( 181) $ ( 172) $ ( 61) $ ( 50) Amounts recognized in the balance sheet: Assets $ - $ - $ 65 $ 72 $ - $ - $ - $ - Liabilities ( 507) ( 713) ( 340) ( 349) ( 181) ( 172) ( 61) ( 50) Total amounts recognized $ ( 507) $ ( 713) $ ( 275) $ ( 277) $ ( 181) $ ( 172) $ ( 61) $ ( 50) Pre-tax amounts recognized in Accumulated other comprehensive income (loss): Net gain (loss) $ ( 1,436) $ ( 1,450) $ ( 195) $ ( 149) $ 10 $ 26 $ ( 6) $ 3 Prior service (cost) credit - - ( 22) ( 23) - - 1 3 Total amounts recognized $ ( 1,436) $ ( 1,450) $ ( 217) $ ( 172) $ 10 $ 26 $ ( 5) $ 6 (a) Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $ 261 million and $ 250 million for the U.S. at December 31, 2019 and 2018, respectively, and $ 225 million and $ 201 million for the non-U.S. at December 31, 2019 and 2018, respectively. (b) The significant decrease in actuarial gains and losses from the prior year is primarily due to a 106 bps decrease in the discount rate in 2019 for the qualified plan. |
Schedule of accumulated benefit obligations | At December 31, (in millions) 2019 2018 U.S. pension benefit plans $ 4,972 $ 4,553 Non-U.S. pension benefit plans $ 1,159 $ 1,125 |
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) 2019 2018 2019 2018 2019 2018 2019 2018 Projected benefit obligation $ 4,972 $ 4,553 $ 1,005 $ 994 - - - - Accumulated benefit obligation - - - - $ 4,972 $ 4,553 $ 931 $ 932 Fair value of plan assets 4,465 3,840 605 594 4,465 3,840 605 594 |
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) 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Components of net periodic benefit cost: Service cost * $ 5 $ 5 $ 11 $ 21 $ 22 $ 29 $ 1 $ 1 $ 2 $ 1 $ 1 $ 3 Interest cost 176 162 166 15 16 16 6 6 6 2 2 3 Expected return on assets ( 229) ( 283) ( 266) ( 21) ( 25) ( 24) - - - - - - Amortization of prior service cost (credit) - - - 2 2 - - ( 1) ( 1) ( 2) ( 2) ( 1) Amortization of net (gain) loss 35 28 26 5 7 12 ( 1) - ( 1) - 1 1 Net periodic benefit cost (credit) ( 13) ( 88) ( 63) 22 22 33 6 6 6 1 2 6 Curtailment gain - - - - - ( 6) - - - - - ( 2) Settlement (credit) charges - - 60 ( 2) - 1 - - - - - - Net benefit cost (credit) $ ( 13) $ ( 88) $ ( 3) $ 20 $ 22 $ 28 $ 6 $ 6 $ 6 $ 1 $ 2 $ 4 Total recognized in Accumulated other comprehensive income (loss) $ 14 $ ( 77) $ 32 $ ( 45) $ 20 $ 87 $ ( 17) $ 9 $ ( 2) $ ( 10) $ 12 $ 9 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 27 $ 11 $ 35 $ ( 65) $ ( 2) $ 59 $ ( 23) $ 3 $ ( 8) $ ( 11) $ 10 $ 5 * Reflects administrative fees for the U.S. pension plans. |
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, 2019 Discount rate 3.16 % 1.09 % 3.14 % 3.18 % Interest crediting rate 2.19 % 0.44 % (b) N/A N/A Rate of compensation increase N/A (c) 2.22 % N/A 3.00 % December 31, 2018 Discount rate 4.22 % 1.71 % 4.17 % 4.12 % Interest crediting rate 3.34 % 0.74 % (b) N/A N/A Rate of compensation increase N/A (c) 2.27 % N/A 3.00 % (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) Represents the weighted average interest crediting rate of non-U.S. cash balance plans primarily in Japan and Switzerland. (c) Compensation increases are no longer applicable as the plan is frozen effective January 1, 2016. |
Schedule of assumed health care cost trend rates | At December 31, 2019 2018 Following year: Medical (before age 65) 5.74% 5.93% Medical (age 65 and older) 5.00% 5.00% 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 2038 Medical (age 65 and older) 2038 2038 |
Schedule of weighted average assumptions used to determine the net periodic benefit costs | Pension Postretirement U.S. Plans Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (a) For the Year Ended December 31, 2019 Discount rate 4.22 % 1.71 % 4.17 % 4.12 % Interest crediting rate 3.34 % 0.74 % (b) N/A N/A Rate of compensation increase N/A 2.27 % N/A 3.00 % Expected return on assets 6.20 % 2.51 % N/A N/A For the Year Ended December 31, 2018 Discount rate 3.61 % 1.60 % 3.53 % 3.59 % Interest crediting rate 2.88 % 0.70 % (b) N/A N/A Rate of compensation increase N/A 2.27 % N/A 3.00 % Expected return on assets 6.75 % 2.78 % N/A N/A For the Year Ended December 31, 2017 Discount rate 4.15 % 1.50 % 4.01 % 3.95 % Interest crediting rate 2.50 % 0.69 % (b) N/A N/A Rate of compensation increase N/A 2.50 % N/A 3.38 % Expected return on assets 7.00 % 2.92 % N/A N/A (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) Represents the weighted average interest crediting rate of non-U.S. cash balance plans primarily in Japan and Switzerland. Discount Rate Methodology |
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, 2019 Assets: Cash and cash equivalents $ 133 $ - $ - $ 133 $ 90 $ - $ - $ 90 Equity securities: U.S. (a) 278 - - 278 - - - - International (b) 161 25 - 186 156 49 - 205 Fixed maturity securities: U.S. investment grade (c) - 2,200 9 2,209 - - - - International investment grade (c) - 203 - 203 - 158 - 158 U.S. and international high yield (d) - 106 - 106 - 229 - 229 Mortgage and other asset-backed securities (e) - 48 - 48 - - - - Other fixed maturity securities - - - - - - - - Other investment types (f) : Futures ( 17) - - ( 17) - - - - Direct private equity (g) - - 11 11 - - - - Insurance contracts - 14 - 14 - - 160 160 Mutual Funds (h) - - - - - 57 - 57 Total $ 555 $ 2,596 $ 20 $ 3,171 $ 246 $ 493 $ 160 $ 899 At December 31, 2018 Assets: Cash and cash equivalents $ 501 $ - $ - $ 501 $ 97 $ - $ - $ 97 Equity securities: U.S. (a) 240 - - 240 - - - - International (b) 137 - - 137 218 84 - 302 Fixed maturity securities: U.S. investment grade (c) - 1,463 13 1,476 - - - - International investment grade (c) - 157 - 157 - 130 - 130 U.S. and international high yield (d) - 96 - 96 - 185 - 185 Mortgage and other asset-backed securities (e) - 36 - 36 - - - - Other fixed maturity securities - - - - - 2 - 2 Other investment types (f) : Futures 27 - - 27 - - - - Direct private equity (g) - - 14 14 - - - - Insurance contracts - 18 - 18 - - 145 145 Total $ 905 $ 1,770 $ 27 $ 2,702 $ 315 $ 401 $ 145 $ 861 (a) Includes passive and active U.S. equity strategies. (b) Includes passive and active international equity strategies. (c) Includes 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) Represents investments in collateralized loan obligations. As of December 31, 2019, the plan held additional asset-backed securities. (f) Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $ 1,294 million and $ 1,138 million at December 31, 2019 and 2018, respectively. (g) Comprised of private capital financing including private debt and private equity securities. (h) Comprised of mutual fund investing in variety of equity, derivatives, and bonds. |
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, 2019 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 $ 13 $ 3 $ - $ ( 3) $ - $ - $ - $ ( 4) $ 9 $ 3 Direct private equity 14 ( 3) 2 ( 2) - - - - 11 2 Total $ 27 $ - $ 2 $ ( 5) $ - $ - $ - $ ( 4) $ 20 $ 5 Non-U.S. Plan Assets: Insurance contracts $ 145 $ 16 $ ( 1) $ - $ - $ - $ - $ - $ 160 $ - Total $ 145 $ 16 $ ( 1) $ - $ - $ - $ - $ - $ 160 $ - Changes in Net Unrealized Gains Balance Realized and Balance (Losses) on At December 31, 2018 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 $ 12 $ ( 2) $ 5 $ ( 3) $ - $ - $ 1 $ - $ 13 $ 1 Direct private equity 15 ( 2) 3 ( 2) - - - - 14 ( 1) Total $ 27 $ ( 4) $ 8 $ ( 5) $ - $ - $ 1 $ - $ 27 $ - Non-U.S. Plan Assets: Insurance contracts $ 113 $ 31 $ 1 $ - $ - $ - $ - $ - $ 145 $ - Total $ 113 $ 31 $ 1 $ - $ - $ - $ - $ - $ 145 $ - |
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 2020 $ 330 $ 47 $ 13 $ 1 2021 326 41 13 1 2022 334 42 13 2 2023 320 43 13 2 2024 320 49 12 2 2025-2029 1,473 252 50 10 |
U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of asset allocation percentage by major asset class and target allocation | Target Actual Actual At December 31, 2020 2019 2018 Asset class: Equity securities 26 % 25 % 25 % Fixed maturity securities 60 % 59 % 47 % Other investments 14 % 16 % 28 % Total 100 % 100 % 100 % |
Non U.S. 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, 2020 2019 2018 Asset class: Equity securities 29 % 23 % 35 % Fixed maturity securities 51 % 43 % 37 % Other investments 19 % 24 % 17 % Cash and cash equivalents 1 % 10 % 11 % Total 100 % 100 % 100 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 2017 U.S. $ 3,825 $ ( 12) $ 1,940 Foreign 1,462 269 ( 474) Total $ 5,287 $ 257 $ 1,466 |
Schedule of income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations | Years Ended December 31, (in millions) 2019 2018 2017 Foreign and U.S. components of actual income tax expense: U.S.: Current $ 278 $ 134 $ 427 Deferred 633 ( 175) 6,865 Foreign: Current 267 202 209 Deferred ( 12) ( 7) 25 Total $ 1,166 $ 154 $ 7,526 |
Schedule of reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate | Years Ended December 31, 2019 2018 2017 Pre-Tax Tax Percent of Pre-Tax Tax Percent of Tax Percent of 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 $ 5,336 $ 1,120 21.0 % $ 255 $ 54 21.0 % $ 1,476 $ 517 35.0 % Adjustments: Tax exempt interest ( 25) ( 0.5) ( 37) ( 14.5) ( 111) ( 7.5) Uncertain tax positions* 258 4.8 176 69.0 660 44.7 Reclassifications from accumulated other comprehensive income ( 113) ( 2.1) ( 72) ( 28.2) ( 184) ( 12.5) Dispositions of Subsidiaries 21 0.4 - - 17 1.2 Tax Attribute Restoration - - - - - - Non-controlling Interest ( 5) ( 0.1) ( 1) ( 0.4) ( 7) ( 0.5) Non-deductible transfer pricing charges 15 0.3 29 11.4 35 2.4 Dividends received deduction ( 40) ( 0.7) ( 38) ( 14.8) ( 90) ( 6.1) Effect of foreign operations 69 1.3 44 17.3 69 4.7 Share-based compensation payments excess tax effect 27 0.5 ( 13) ( 5.1) ( 40) ( 2.7) State income taxes 13 0.2 10 3.9 ( 9) ( 0.6) Impact of Tax Act - - 62 24.3 6,687 453.0 Global intangible low-taxed income 13 0.2 21 8.2 - - Other* ( 134) ( 2.5) ( 102) ( 40.0) ( 58) ( 3.9) Effect of discontinued operations ( 8) ( 0.1) 40 15.7 3 0.2 Valuation allowance: Continuing operations ( 44) ( 0.8) 21 8.2 43 2.9 Consolidated total amounts 5,336 1,167 21.9 255 194 76.0 1,476 7,532 510.3 Amounts attributable to discontinued operations 49 1 2.0 ( 2) 40 NM 10 6 60.0 Amounts attributable to continuing operations $ 5,287 $ 1,166 22.1 % $ 257 $ 154 59.9 % $ 1,466 $ 7,526 513.4 % * 2019 includes a net charge of $ 96 million related to the accrual of IRS interest, of which $ 207 million tax expense is reported in Uncertain Tax Positions and $( 111) million tax benefit is reported in Other. 2018 includes a net charge of $ 83 million related to the accrual of IRS interest, of which $ 189 million tax expense is reported in Uncertain Tax Positions and $( 106) million tax benefit is reported in Other. 2017 includes a net charge of $ 301 million related to the accrual of IRS interest, of which $ 245 million tax expense is reported in Uncertain Tax Positions and $ 56 million tax expense is reported in Other. |
Schedule of components of the net deferred tax asset | December 31, (in millions) 2019 2018 Deferred tax assets: Losses and tax credit carryforwards $ 10,541 $ 11,792 Basis differences on investments 2,673 2,038 Life policy reserves 1,766 2,200 Accruals not currently deductible, and other 743 608 Investments in foreign subsidiaries 148 173 Loss reserve discount 471 272 Loan loss and other reserves 58 - Unearned premium reserve reduction 382 504 Fixed assets and intangible assets 963 531 Other 319 962 Employee benefits 617 604 Total deferred tax assets 18,681 19,684 Deferred tax liabilities: Deferred policy acquisition costs ( 2,200) ( 2,342) Unrealized gains related to available for sale debt securities ( 2,123) ( 490) Loan loss and other reserves - ( 20) Total deferred tax liabilities ( 4,323) ( 2,852) Net deferred tax assets before valuation allowance 14,358 16,832 Valuation allowance ( 1,427) ( 1,780) Net deferred tax assets (liabilities) $ 12,931 $ 15,052 |
Schedule of consolidated income tax group tax losses carryforwards | Unlimited Carryforward Period and December 31, 2019 Carryforward Tax Carryforward Period Ending Tax Year (b) Periods (b) (in millions) Gross Effected 2020 2021 2022 2023 2024 2025 2026 - After Net operating loss carryforwards $ 32,143 $ 6,750 $ - $ - $ - $ - $ - $ - $ 6,750 Capital loss carryforwards $ - - - - - - - - - Foreign tax credit carryforwards 2,249 738 116 683 711 - - - Other carryforwards - - - - - - - - Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S. GAAP basis (a) $ 8,999 $ 738 $ 116 $ 683 $ 711 $ - $ - $ 6,750 (a) Financial reporting basis is net of unrecognized tax benefits of $ 2.1 billion for those tax years in which tax attributes are available for use when settlement occurs. (b) Carryforward periods are based on U.S. tax laws governing utilization of tax attributes. Expiration periods are based on the year the carryforward was generated. |
Schedule of net deferred tax assets (liabilities) | December 31, (in millions) 2019 2018 Net U.S. consolidated return group deferred tax assets $ 14,622 $ 15,479 Net deferred tax assets (liabilities) in accumulated other comprehensive income ( 2,055) ( 510) Valuation allowance ( 90) ( 405) Subtotal 12,477 14,564 Net foreign, state and local deferred tax assets 2,006 2,031 Valuation allowance ( 1,337) ( 1,374) Subtotal 669 657 Subtotal - Net U.S., foreign, state and local deferred tax assets 13,146 15,221 Net foreign, state and local deferred tax liabilities ( 215) ( 169) Total AIG net deferred tax assets (liabilities) $ 12,931 $ 15,052 |
Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | Years Ended December 31, (in millions) 2019 2018 2017 Gross unrecognized tax benefits, beginning of year $ 4,709 $ 4,707 $ 4,530 Increases in tax positions for prior years 51 14 210 Decreases in tax positions for prior years ( 1) ( 6) ( 33) Increases in tax positions for current year 4 - - Settlements ( 1) ( 6) - Gross unrecognized tax benefits, end of year $ 4,762 $ 4,709 $ 4,707 |
Schedule of tax years that remain subject to examination by major tax jurisdictions | At December 31, 2019 Open Tax Years Major Tax Jurisdiction United States 2000- 2018 Australia 2015- 2018 France 2017- 2019 Japan 2013- 2018 Korea 2014- 2018 Singapore 2015- 2018 United Kingdom 2018- 2019 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 common share data) 2019 2018 2019 2018 2019 2018 2019 2018 Total revenues $ 12,456 $ 11,712 $ 12,561 $ 11,631 $ 12,914 $ 11,486 $ 11,815 $ 12,560 Income (loss) from continuing operations before income taxes * 1,154 1,227 1,837 1,252 1,260 ( 1,527) 1,036 ( 695) Income (loss) from discontinued operations, net of income taxes - ( 1) ( 1) - - ( 39) 49 ( 2) Net income (loss) 937 949 1,390 931 973 ( 1,259) 869 ( 560) Net income (loss) from continuing operations attributable to noncontrolling interests 283 11 281 ( 6) 317 - ( 60) 62 Net income (loss) attributable to AIG 654 938 1,109 937 656 ( 1,259) 929 ( 622) Net income (loss) attributable to AIG common shareholders * $ 654 $ 938 $ 1,102 $ 937 $ 648 $ ( 1,259) $ 922 $ ( 622) Income (loss) per common share attributable to AIG common shareholders: Basic: Income (loss) from continuing operations $ 0.75 $ 1.03 $ 1.26 $ 1.04 $ 0.74 $ ( 1.37) $ 0.99 $ ( 0.70) Income (loss) from discontinued operations $ - $ - $ - $ - $ - $ ( 0.04) $ 0.06 $ - Diluted: Income (loss) from continuing operations $ 0.75 $ 1.01 $ 1.24 $ 1.02 $ 0.72 $ ( 1.37) $ 0.97 $ ( 0.70) Income (loss) from discontinued operations $ - $ - $ - $ - $ - $ ( 0.04) $ 0.06 $ - Weighted average shares outstanding: Basic 875,383,084 907,951,597 876,382,884 903,215,488 877,009,495 895,237,359 878,210,228 887,508,718 Diluted 877,512,244 925,266,577 888,325,042 916,572,481 895,814,410 895,237,359 896,380,725 887,508,718 Noteworthy quarterly items - (income) expense: Prior year unfavorable (favorable) development ( 15) ( 40) ( 132) ( 26) ( 74) 949 ( 119) 546 Restructuring and other costs 47 24 60 200 67 35 44 136 * For the three-month period ended December 31, 2018, our results include out of period adjustments relating to prior periods that decreased Net income attributable to AIG common shareholders by $ 87 million, and decreased Income from continuing operations before income taxes by $ 132 million. The out of period adjustments for the three-month period are primarily related to decreases in Premiums and decreases in Net realized capital gains and losses. We determined that these adjustments were not material to the current quarter or to any previously reported quarterly financial statements. Had these adjustments been recorded in their appropriate periods, Net income attributable to AIG common shareholders for the three-month period ended September 30, 2018 would have decreased by $ 40 million with impact to the three-month periods ended June 30, 2018 and March 31, 2018, respectively. |
INFORMATION PROVIDED IN CONNE_2
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTADING DEBT | |
Condensed Consolidating Balance Sheets | American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG December 31, 2019 Assets: Short-term investments (a) $ 3,329 $ - $ - $ 12,496 $ ( 2,595) $ 13,230 Other investments (b) 4,804 - - 319,622 ( 41) 324,385 Total investments 8,133 - - 332,118 ( 2,636) 337,615 Cash 2 8 9 2,837 - 2,856 Loans to subsidiaries (c) 35,352 - - 715 ( 36,067) - Investment in consolidated subsidiaries (c) 39,921 3,646 30,216 - ( 73,783) - Other assets, including deferred income taxes (d) 14,391 1,793 17 170,642 ( 2,250) 184,593 Total assets $ 97,799 $ 5,447 $ 30,242 $ 506,312 $ ( 114,736) $ 525,064 Liabilities: Insurance liabilities $ - $ - $ - $ 302,406 $ - $ 302,406 Long-term debt and debt of consolidated investment entities 22,030 353 643 12,324 - 35,350 Other liabilities, including intercompany balances (b) 9,379 10 42 115,313 ( 4,863) 119,881 Loans from subsidiaries (c) 715 - - 35,353 ( 36,068) - Total liabilities 32,124 363 685 465,396 ( 40,931) 457,637 Total AIG shareholders’ equity 65,675 5,084 29,557 39,164 ( 73,805) 65,675 Non-redeemable noncontrolling interests - - - 1,752 - 1,752 Total equity 65,675 5,084 29,557 40,916 ( 73,805) 67,427 Total liabilities and equity $ 97,799 $ 5,447 $ 30,242 $ 506,312 $ ( 114,736) $ 525,064 December 31, 2018 Assets: Short-term investments (a) $ 1,141 $ 2 $ - $ 10,329 $ ( 1,798) $ 9,674 Other investments (b) 3,377 - - 301,158 - 304,535 Total investments 4,518 2 - 311,487 ( 1,798) 314,209 Cash 2 9 9 2,853 - 2,873 Loans to subsidiaries (c) 34,963 - - 615 ( 35,578) - Investment in consolidated subsidiaries (c) 33,300 4,029 25,058 (e) - ( 62,387) (e) - Other assets, including deferred income taxes (d) 15,389 1,798 124 159,430 ( 1,839) 174,902 Total assets $ 88,172 $ 5,838 $ 25,191 $ 474,385 $ ( 101,602) $ 491,984 Liabilities: Insurance liabilities $ - $ - $ - $ 293,652 $ - $ 293,652 Long-term debt and debt of consolidated investment entities 22,422 359 643 11,116 - 34,540 Other liabilities, including intercompany balances (b) 8,774 228 144 100,974 ( 3,637) 106,483 Loans from subsidiaries (c) 615 - - 34,963 ( 35,578) - Total liabilities 31,811 587 787 440,705 ( 39,215) 434,675 Total AIG shareholders’ equity 56,361 5,251 24,404 (e) 32,732 ( 62,387) (e) 56,361 Non-redeemable noncontrolling interests - - - 948 - 948 Total equity 56,361 5,251 24,404 33,680 ( 62,387) 57,309 Total liabilities and equity $ 88,172 $ 5,838 $ 25,191 $ 474,385 $ ( 101,602) $ 491,984 (a) At December 31, 2019, includes restricted cash of $ 102 million and $ 86 million for American International Group, Inc. (as Guarantor) and Other Subsidiaries, respectively. At December 31, 2018, includes restricted cash of $ 124 million and $ 18 million for American International Group, Inc. (as Guarantor) and Other Subsidiaries, respectively. (b) Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment. (c) Eliminated in consolidation. (d) At December 31, 2019, includes restricted cash of $ 1 million and $ 242 million for American International Group, Inc. (as Guarantor) and Other Subsidiaries, respectively. At December 31, 2018, includes restricted cash of $ 1 million and $ 342 million for American International Group, Inc. (as Guarantor) and Other Subsidiaries, respectively. (e) The Investment in consolidated subsidiaries amounts for AIGLH and Reclassifications and Eliminations in 2018 have been revised from $ 26.3 billion to $ 25.1 billion and from $( 63.7) billion to $( 62.4) billion, respectively, to correct Total assets in 2018. The AIG shareholders’ equity amounts for AIGLH and Reclassifications and Eliminations in 2018 have been revised from $ 25.7 billion to $ 24.4 billion and from $( 63.7) billion to $( 62.4) billion, respectively, to correct Total equity in 2018. These corrections in 2018 have no impact on AIG’s consolidated financial statements and are not considered material to previously issued financial statements. |
Condensed Consolidating Statements of Income (Loss) | American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2019 Revenues: Equity in earnings of consolidated subsidiaries (a) $ 3,863 $ 303 $ 325 $ - $ ( 4,491) $ - Other income 1,156 9 - 48,751 ( 170) 49,746 Total revenues 5,019 312 325 48,751 ( 4,661) 49,746 Expenses: Interest expense 985 17 50 380 ( 15) 1,417 Loss on extinguishment of debt - - - 32 - 32 Other expenses 729 18 3 42,415 ( 155) 43,010 Total expenses 1,714 35 53 42,827 ( 170) 44,459 Income (loss) from continuing operations before income tax expense (benefit) 3,305 277 272 5,924 ( 4,491) 5,287 Income tax expense (benefit) ( 45) - ( 6) 1,217 - 1,166 Income (loss) from continuing operations 3,350 277 278 4,707 ( 4,491) 4,121 Income (loss) from discontinued operations, net of income taxes ( 2) - - 50 - 48 Net income (loss) 3,348 277 278 4,757 ( 4,491) 4,169 Less: Net income from continuing operations attributable to noncontrolling interests - - - 821 - 821 Net income (loss) attributable to AIG $ 3,348 $ 277 $ 278 $ 3,936 $ ( 4,491) $ 3,348 Year Ended December 31, 2018 Revenues: Equity in earnings of consolidated subsidiaries (a) $ ( 580) $ ( 240) $ 3,359 (b) $ - $ ( 2,539) (b) $ - Other income 938 23 1 46,506 ( 79) 47,389 Total revenues 358 ( 217) 3,360 46,506 ( 2,618) 47,389 Expenses: Interest expense 954 18 50 302 ( 15) 1,309 Loss on extinguishment of debt - - - 7 - 7 Other expenses 803 27 3 45,048 ( 65) 45,816 Total expenses 1,757 45 53 45,357 ( 80) 47,132 Income (loss) from continuing operations before income tax expense (benefit) ( 1,399) ( 262) 3,307 1,149 ( 2,538) 257 Income tax expense (benefit) ( 1,433) - 39 1,548 - 154 Income (loss) from continuing operations 34 ( 262) 3,268 ( 399) ( 2,538) 103 Loss from discontinued operations, net of income taxes ( 40) - - ( 2) - ( 42) Net income (loss) ( 6) ( 262) 3,268 ( 401) ( 2,538) 61 Less: Net income from continuing operations attributable to noncontrolling interests - - - 67 - 67 Net income (loss) attributable to AIG $ ( 6) $ ( 262) $ 3,268 $ ( 468) $ ( 2,538) $ ( 6) American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2017 Revenues: Equity in earnings of consolidated subsidiaries (a) $ ( 149) $ - $ 1,328 (b) $ - $ ( 1,179) (b) $ - Other income 891 - - 48,802 ( 173) 49,520 Total revenues 742 - 1,328 48,802 ( 1,352) 49,520 Expenses: Interest expense 949 - 50 176 ( 7) 1,168 (Gain) loss on extinguishment of debt 2 - - ( 7) - ( 5) Other expenses 952 - 2 46,116 ( 179) 46,891 Total expenses 1,903 - 52 46,285 ( 186) 48,054 Income (loss) from continuing operations before income tax expense (benefit) ( 1,161) - 1,276 2,517 ( 1,166) 1,466 Income tax expense (benefit) 4,922 - ( 3) 2,607 - 7,526 Income (loss) from continuing operations ( 6,083) - 1,279 ( 90) ( 1,166) ( 6,060) Income (loss) from discontinued operations, net of income taxes ( 1) - - 5 - 4 Net income (loss) ( 6,084) - 1,279 ( 85) ( 1,166) ( 6,056) Less: Net income from continuing operations attributable to noncontrolling interests - - - 28 - 28 Net income (loss) attributable to AIG $ ( 6,084) $ - $ 1,279 $ ( 113) $ ( 1,166) $ ( 6,084) (a) Eliminated in consolidation. (b) Equity in earnings of consolidated subsidiaries amounts for AIGLH and Reclassifications and Eliminations in 2018 have been revised from $ 2.8 billion to $ 3.4 billion and from $( 2.0) billion to $( 2.5) billion, respectively, to correct Total revenues in 2018. Equity in earnings of consolidated subsidiaries amounts for AIGLH and Reclassifications and Eliminations in 2017 have been revised from $ 1.9 billion to $ 1.3 billion and from $( 1.8) billion to $( 1.2) billion, respectively, to correct Total revenues in 2017. These corrections in 2018 and 2017 have no impact on AIG’s consolidated financial statements and are not considered material to previously issued financial statements. |
Condensed Consolidating Statements of Comprehensive Income (Loss) | American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2019 Net income (loss) $ 3,348 $ 277 $ 278 $ 4,757 $ ( 4,491) $ 4,169 Other comprehensive income (loss) 6,395 1 6,209 6,370 ( 12,560) 6,415 Comprehensive income (loss) 9,743 278 6,487 11,127 ( 17,051) 10,584 Total comprehensive income attributable to noncontrolling interests - - - 841 - 841 Comprehensive income (loss) attributable to AIG $ 9,743 $ 278 $ 6,487 $ 10,286 $ ( 17,051) $ 9,743 Year Ended December 31, 2018 Net income (loss) $ ( 6) $ ( 262) $ 3,268 (a) $ ( 401) $ ( 2,538) (a) $ 61 Other comprehensive income (loss) ( 6,302) - ( 4,555) (b) ( 6,810) (b) 11,374 (b) ( 6,293) Comprehensive income (loss) ( 6,308) ( 262) ( 1,287) ( 7,211) 8,836 ( 6,232) Total comprehensive income attributable to noncontrolling interests - - - 76 - 76 Comprehensive income (loss) attributable to AIG $ ( 6,308) $ ( 262) $ ( 1,287) $ ( 7,287) $ 8,836 $ ( 6,308) Year Ended December 31, 2017 Net income (loss) $ ( 6,084) $ - $ 1,279 (a) $ ( 85) $ ( 1,166) (a) $ ( 6,056) Other comprehensive income (loss) 2,235 - 1,844 (b) 2,021 (b) ( 3,865) (b) 2,235 Comprehensive income (loss) ( 3,849) - 3,123 1,936 ( 5,031) ( 3,821) Total comprehensive income attributable to noncontrolling interests - - - 28 - 28 Comprehensive income (loss) attributable to AIG $ ( 3,849) $ - $ 3,123 $ 1,908 $ ( 5,031) $ ( 3,849) (a) Net income (loss) amounts for AIGLH and Reclassifications and Eliminations in 2018 have been revised from $ 2.8 billion to $ 3.3 billion and from $( 2.0) billion to $( 2.5) billion, respectively, to correct Comprehensive income (loss) in 2018. Net income (loss) amounts for AIGLH and Reclassifications and Eliminations in 2017 have been revised from $ 1.9 billion to $ 1.3 billion and from $( 1.8) billion to $( 1.2) billion, respectively, to correct Comprehensive income (loss) in 2017. These corrections in 2018 and 2017 have no impact on AIG’s consolidated financial statements and are not considered material to previously issued financial statements. (b) The Other comprehensive income (loss) amounts for AIGLH, Other Subsidiaries, and Reclassifications and Eliminations in 2018 have been revised from $ 2.5 billion to $( 4.6) billion, from $ 12.3 billion to $( 6.8) billion, and from $( 14.8) billion to $ 11.4 billion, respectively, to correct Comprehensive income (loss) in 2018. The Other comprehensive income (loss) amounts for AIGLH, Other Subsidiaries, and Reclassifications and Eliminations in 2017 have been revised from $ 7.8 billion to $ 1.8 billion, from $ 17.8 billion to $ 2.0 billion, and from $( 25.7) billion to $( 3.9) billion, respectively, to correct Comprehensive income (loss) in 2017. These corrections in 2018 and 2017 have no impact on AIG’s consolidated financial statements and are not considered material to previously issued financial statements. |
Condensed Consolidating Statements of Cash Flows | American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2019 Net cash (used in) provided by operating activities $ 3,484 $ 187 $ 1,470 $ ( 1,439) $ ( 4,630) $ ( 928) Cash flows from investing activities: Sales of investments 2,313 2 - 63,830 ( 583) 65,562 Sales of divested businesses, net - - - 2 - 2 Purchase of investments ( 2,957) - - ( 66,535) 583 ( 68,909) Loans to subsidiaries - net 513 - - ( 93) ( 420) - Contributions from (to) subsidiaries - net ( 237) - - - 237 - Net change in short-term investments ( 2,170) - - ( 1,463) - ( 3,633) Other, net 67 - - 1,436 - 1,503 Net cash (used in) provided by investing activities ( 2,471) 2 - ( 2,823) ( 183) ( 5,475) Cash flows from financing activities: Issuance of long-term debt and debt of consolidated investment entities 595 - - 3,286 - 3,881 Repayments of long-term debt and debt of consolidated investment entities ( 1,006) - - ( 2,196) - ( 3,202) Issuance of preferred stock 485 - - - - 485 Purchase of common stock - - - - - - Intercompany loans - net 93 - - ( 513) 420 - Cash dividends paid on preferred stock ( 22) - - - - ( 22) Cash dividends paid on common stock ( 1,114) ( 190) ( 1,470) ( 2,970) 4,630 ( 1,114) Other, net ( 66) - - 6,654 ( 237) 6,351 Net cash (used in) provided by financing activities ( 1,035) ( 190) ( 1,470) 4,261 4,813 6,379 Effect of exchange rate changes on cash and restricted cash - - - 16 - 16 Change in cash and restricted cash ( 22) ( 1) - 15 - ( 8) Cash and restricted cash at beginning of year 127 9 9 3,213 - 3,358 Change in cash of businesses held for sale - - - ( 63) - ( 63) Cash and restricted cash at end of year $ 105 $ 8 $ 9 $ 3,165 $ - $ 3,287 Year Ended December 31, 2018 Net cash (used in) provided by operating activities $ 1,256 $ 656 $ 2,445 $ 1,651 $ ( 5,947) $ 61 Cash flows from investing activities: Sales of investments 5,587 13 - 59,918 ( 3,206) 62,312 Sales of divested businesses, net - - - 10 - 10 Purchase of investments ( 1,980) - - ( 59,778) 3,206 ( 58,552) Loans to subsidiaries - net 868 - - ( 90) ( 778) - Contributions from (to) subsidiaries - net 1 - - - ( 1) - Acquisition of businesses, net of cash and restricted cash acquired ( 5,475) 112 - ( 354) - ( 5,717) Net change in short-term investments 1,533 - - ( 9) - 1,524 Other, net ( 73) - - 273 - 200 Net cash (used in) provided by investing activities 461 125 - ( 30) ( 779) ( 223) Cash flows from financing activities: Issuance of long-term debt and debt of consolidated investment entities 2,470 - - 2,264 - 4,734 Repayments of long-term debt and debt of consolidated investment entities ( 1,493) ( 350) - ( 1,829) - ( 3,672) Purchase of common stock ( 1,739) - - - - ( 1,739) Intercompany loans - net 90 - - ( 868) 778 - Cash dividends paid on common stock ( 1,138) ( 6) ( 2,456) ( 3,485) 5,947 ( 1,138) Other, net 212 ( 416) - 2,812 1 2,609 Net cash (used in) provided by financing activities ( 1,598) ( 772) ( 2,456) ( 1,106) 6,726 794 Effect of exchange rate changes on cash and restricted cash - - - ( 11) - ( 11) Change in cash and restricted cash 119 9 ( 11) 504 - 621 Cash and restricted cash at beginning of year 8 - 20 2,709 - 2,737 Cash and restricted cash at end of year $ 127 $ 9 $ 9 $ 3,213 $ - $ 3,358 American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2017 Net cash (used in) provided by operating activities $ 36 $ - $ 1,413 $ ( 6,659) $ ( 2,608) $ ( 7,818) Cash flows from investing activities: Sales of investments 5,821 - - 74,477 ( 3,758) 76,540 Sales of divested businesses, net 40 - - 752 - 792 Purchase of investments ( 2,465) - - ( 64,539) 3,758 ( 63,246) Loans to subsidiaries - net 199 - - 63 ( 262) - Contributions from (to) subsidiaries - net 2,446 - - - ( 2,446) - Net change in short-term investments 1,994 - - 104 - 2,098 Other, net ( 183) - ( 5) ( 1,955) - ( 2,143) Net cash (used in) provided by investing activities 7,852 - ( 5) 8,902 ( 2,708) 14,041 Cash flows from financing activities: Issuance of long-term debt and debt of consolidated investment entities 1,505 - - 1,851 - 3,356 Repayments of long-term debt and debt of consolidated investment entities ( 1,724) - - ( 1,974) - ( 3,698) Purchase of common stock ( 6,275) - - - - ( 6,275) Intercompany loans - net ( 63) - - ( 199) 262 - Cash dividends paid on common stock ( 1,172) - ( 1,422) ( 1,186) 2,608 ( 1,172) Other, net ( 154) - - ( 200) 2,446 2,092 Net cash (used in) provided by financing activities ( 7,883) - ( 1,422) ( 1,708) 5,316 ( 5,697) Effect of exchange rate changes on cash and restricted cash - - - ( 29) - ( 29) Change in cash and restricted cash 5 - ( 14) 506 - 497 Cash and restricted cash at beginning of year 3 - 34 2,070 - 2,107 Change in cash of businesses held for sale - - - 133 - 133 Cash and restricted cash at end of year $ 8 $ - $ 20 $ 2,709 $ - $ 2,737 |
Supplementary Disclosure of Condensed Consolidating Cash Flow Information | American International Validus Reclassifications Group, Inc. Holdings, Other and Consolidated (in millions) (As Guarantor) Ltd. AIGLH Subsidiaries Eliminations AIG Year Ended December 31, 2019 Cash $ 2 $ 8 $ 9 $ 2,837 $ - $ 2,856 Restricted cash included in Short-term investments 102 - - 86 - 188 Restricted cash included in Other assets 1 - - 242 - 243 Total cash and restricted cash shown in the Condensed Consolidating Statements of Cash Flows $ 105 $ 8 $ 9 $ 3,165 $ - $ 3,287 Cash (paid) received during the year ended December 31, 2019 for: Interest: Third party $ ( 941) $ ( 22) $ ( 50) $ ( 313) $ - $ ( 1,326) Intercompany ( 3) 45 - ( 42) - - Taxes: Income tax authorities $ ( 11) $ - $ - $ ( 241) $ - $ ( 252) Intercompany 1,179 2 - ( 1,181) - - Year Ended December 31, 2018 Cash $ 2 $ 9 $ 9 $ 2,853 $ - $ 2,873 Restricted cash included in Short-term investments 124 - - 18 - 142 Restricted cash included in Other assets 1 - - 342 - 343 Total cash and restricted cash shown in the Condensed Consolidating Statements of Cash Flows $ 127 $ 9 $ 9 $ 3,213 $ - $ 3,358 Cash (paid) received during the year ended December 31, 2018 for: Interest: Third party $ ( 914) $ ( 17) $ ( 48) $ ( 333) $ - $ ( 1,312) Intercompany 1 - ( 1) - - - Taxes: Income tax authorities $ ( 32) $ - $ - $ ( 122) $ - $ ( 154) Intercompany 895 - - ( 895) - - Year Ended December 31, 2017 Cash $ 3 $ - $ 20 $ 2,339 $ - $ 2,362 Restricted cash included in Short-term investments 4 - - 54 - 58 Restricted cash included in Other assets 1 - - 316 - 317 Total cash and restricted cash shown in the Condensed Consolidating Statements of Cash Flows $ 8 $ - $ 20 $ 2,709 $ - $ 2,737 Cash (paid) received during the year ended December 31, 2017 for: Interest: Third party $ ( 948) $ - $ ( 48) $ ( 286) $ - $ ( 1,282) Intercompany - - ( 1) 1 - - Taxes: Income tax authorities $ ( 329) $ - $ - $ ( 215) $ - $ ( 544) Intercompany 614 - - ( 614) - - |
Supplementary disclosure of non-cash activities | Years Ended December 31, (in millions) 2019 2018 2017 Intercompany non-cash financing and investing activities: Capital contributions $ 15 $ 2,369 $ 259 Dividends received in the form of securities 702 745 735 Return of capital 15 2,706 26 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | Nov. 25, 2019 | Nov. 13, 2018USD ($) | Jul. 18, 2018USD ($) | Nov. 14, 2016USD ($) | Dec. 31, 2019USD ($)item$ / shares | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($)$ / shares | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)item$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) |
Basis of Presentation [Line Items] | |||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 2.50 | $ 2.5 | $ 2.50 | $ 2.5 | |||||||||||
Net income (loss) attributable to AIG | $ 929,000,000 | $ 656,000,000 | $ 1,109,000,000 | $ 654,000,000 | $ (622,000,000) | $ (1,259,000,000) | $ 937,000,000 | $ 938,000,000 | $ 3,348,000,000 | $ (6,000,000) | $ (6,084,000,000) | ||||
Income from continuing operations before income tax expense | 1,036,000,000 | $ 1,260,000,000 | $ 1,837,000,000 | $ 1,154,000,000 | $ (695,000,000) | (1,527,000,000) | 1,252,000,000 | 1,227,000,000 | 5,287,000,000 | 257,000,000 | 1,466,000,000 | ||||
Net income (loss) on sale of divested businesses | (75,000,000) | 38,000,000 | 68,000,000 | ||||||||||||
Repayments of Long-term Debt | 3,202,000,000 | 3,672,000,000 | 3,698,000,000 | ||||||||||||
Other Income | 919,000,000 | $ 1,638,000,000 | 2,412,000,000 | ||||||||||||
American International Group, Inc. | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Percentage of common stock held after closing of transaction | 3.50% | ||||||||||||||
Fortitude RE | Fortitude Holdings | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Parent owneship interest | 100.00% | 100.00% | |||||||||||||
Fortitude Holdings | American International Group, Inc. | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Percentage of common stock held after closing of transaction | 3.50% | 80.10% | |||||||||||||
Fortitude Holdings | T&D | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Voting interest in subsidiary, Percent | 25.00% | ||||||||||||||
Fortitude Holdings | Carlyle FRL | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Voting interest in subsidiary, Percent | 51.60% | ||||||||||||||
Validus Holding Ltd [Member] | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Payments to acquire business | $ 5,500,000,000 | ||||||||||||||
Interest acquired | 100.00% | ||||||||||||||
Adjustment | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Net income (loss) attributable to AIG | $ (87,000,000) | $ (40,000,000) | $ 0 | $ 0 | |||||||||||
Income from continuing operations before income tax expense | (132,000,000) | ||||||||||||||
Adjustments 2018 | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Net income (loss) attributable to AIG | $ (77,000,000) | $ 95,000,000 | |||||||||||||
Income from continuing operations before income tax expense | (98,000,000) | ||||||||||||||
AIG Fuji Life Insurance | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Consideration in cash | $ 333,000,000 | ||||||||||||||
Fortitude Holdings | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Consideration in cash | $ 381,000,000 | ||||||||||||||
Contingent consideration receivable, maximum | 100,000,000 | 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||||||||||
Contingent consideration period | 18 months | 18 months | |||||||||||||
Contingent considiration receivable | $ 95,000,000 | $ 95,000,000 | $ 95,000,000 | $ 95,000,000 | |||||||||||
Expected payment to affiliates | $ 1,450,000,000 | ||||||||||||||
Planned distribution term | 36 months | ||||||||||||||
Fortitude Holdings | TC Group Cayman | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Voting interest in subsidiary, Percent | 19.90% | ||||||||||||||
Parent owneship interest | 100.00% | ||||||||||||||
Fortitude Holdings | American International Group, Inc. | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Percentage of common stock held after closing of transaction | 80.10% | ||||||||||||||
Minimum | |||||||||||||||
Basis of Presentation [Line Items] | |||||||||||||||
Number of Countries in which the entity operates | item | 80 | 80 | |||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 2.50 | $ 2.50 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other significant accounting policies) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Line Items] | |||
Cumulative effect of change in accounting principle | $ (8) | ||
Earning pattern of a quota share reinsurance contract | 24 months | ||
Premiums and other receivables | |||
Allowance for doubtful accounts on premiums and other receivables | $ 178 | $ 216 | |
Accumulated Other Comprehensive Income (Loss) | |||
Summary of Significant Accounting Policies [Line Items] | |||
Cumulative effect of change in accounting principle | (576) | ||
Retained Earnings | |||
Summary of Significant Accounting Policies [Line Items] | |||
Cumulative effect of change in accounting principle | $ 568 | ||
Accounting Standards Update - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) | |||
Summary of Significant Accounting Policies [Line Items] | |||
Cumulative effect of change in accounting principle | 248 | ||
Accounting Standards Update - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | Retained Earnings | |||
Summary of Significant Accounting Policies [Line Items] | |||
Cumulative effect of change in accounting principle | $ (248) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other Assets) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Assets | |||
Deferred bonus interest and deferred sales inducement assets | $ 430 | $ 752 | |
Amortization expense associated with deferred bonus interest and deferred sales inducement assets | $ 79 | $ 156 | $ 94 |
Buildings | Maximum | |||
Other Assets | |||
Estimated useful life | 40 years | ||
Furniture and equipment | Maximum | |||
Other Assets | |||
Estimated useful life | 10 years | ||
Software Development | Maximum | |||
Other Assets | |||
Estimated useful life | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Accounting Standards Adopted) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Lease liability | $ 733 | $ 823 | |||
Right of use asset | 648 | $ 724 | |||
Goodwill | 4,038 | $ 4,082 | $ 1,594 | $ 1,528 | |
Cumulative effect of change in accounting principles | $ 650 |
SEGMENT INFORMATION (Details -
SEGMENT INFORMATION (Details - Continuing operations by operating segment) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | $ 11,815 | $ 12,914 | $ 12,561 | $ 12,456 | $ 12,560 | $ 11,486 | $ 11,631 | $ 11,712 | $ 49,746 | $ 47,389 | $ 49,520 |
Net Investment Income | 14,619 | 12,476 | 14,179 | ||||||||
Interest Expense | 1,417 | 1,309 | 1,168 | ||||||||
Amortization of DAC | 5,164 | 5,386 | 4,288 | ||||||||
Adjusted Pre-tax Income (Loss) | $ 1,036 | $ 1,260 | $ 1,837 | $ 1,154 | $ (695) | $ (1,527) | $ 1,252 | $ 1,227 | 5,287 | 257 | 1,466 |
AIG Consolidation and Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | (691) | (171) | (308) | ||||||||
Net Investment Income | (365) | (232) | (280) | ||||||||
Interest Expense | (53) | 85 | (53) | ||||||||
Amortization of DAC | 0 | 0 | 4 | ||||||||
Adjusted Pre-tax Income (Loss) | (305) | 59 | 75 | ||||||||
Total AIG Consolidated adjusted revenues and adjusted pre-tax income (loss) | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 48,917 | 47,813 | 50,776 | ||||||||
Net Investment Income | 14,390 | 12,728 | 14,033 | ||||||||
Interest Expense | 1,370 | 1,343 | 1,168 | ||||||||
Amortization of DAC | 5,216 | 5,391 | 4,579 | ||||||||
Adjusted Pre-tax Income (Loss) | 5,478 | 1,409 | 3,158 | ||||||||
General Insurance | Reportable Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 29,882 | 30,173 | 29,694 | ||||||||
Net Investment Income | 3,444 | 2,668 | 3,668 | ||||||||
Interest Expense | 0 | 0 | 22 | ||||||||
Amortization of DAC | 4,482 | 4,596 | 3,765 | ||||||||
Adjusted Pre-tax Income (Loss) | 3,533 | (469) | (813) | ||||||||
General Insurance | North America | Reportable Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 15,782 | 14,619 | 14,600 | ||||||||
Net Investment Income | 2,929 | 2,305 | 3,145 | ||||||||
Interest Expense | 0 | 0 | 31 | ||||||||
Amortization of DAC | 2,008 | 1,859 | 1,305 | ||||||||
Adjusted Pre-tax Income (Loss) | 2,709 | (8) | (232) | ||||||||
General Insurance | International | Reportable Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 14,100 | 15,554 | 15,094 | ||||||||
Net Investment Income | 515 | 363 | 523 | ||||||||
Interest Expense | 0 | 0 | (9) | ||||||||
Amortization of DAC | 2,474 | 2,737 | 2,460 | ||||||||
Adjusted Pre-tax Income (Loss) | 824 | (461) | (581) | ||||||||
Life and Retirement | Reportable Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 15,865 | 14,136 | 15,586 | ||||||||
Net Investment Income | 8,461 | 7,922 | 7,816 | ||||||||
Interest Expense | 158 | 162 | 109 | ||||||||
Amortization of DAC | 650 | 680 | 743 | ||||||||
Adjusted Pre-tax Income (Loss) | 3,458 | 3,190 | 3,831 | ||||||||
Life and Retirement | Individual Retirement | Reportable Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 5,654 | 5,338 | 5,514 | ||||||||
Net Investment Income | 4,133 | 3,827 | 4,013 | ||||||||
Interest Expense | 77 | 82 | 58 | ||||||||
Amortization of DAC | 449 | 630 | 415 | ||||||||
Adjusted Pre-tax Income (Loss) | 1,984 | 1,681 | 2,289 | ||||||||
Life and Retirement | Group Retirement | Reportable Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 2,947 | 2,891 | 2,848 | ||||||||
Net Investment Income | 2,240 | 2,172 | 2,164 | ||||||||
Interest Expense | 44 | 42 | 32 | ||||||||
Amortization of DAC | 81 | 95 | 84 | ||||||||
Adjusted Pre-tax Income (Loss) | 937 | 933 | 1,004 | ||||||||
Life and Retirement | Life Insurance | Reportable Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 4,352 | 4,007 | 4,056 | ||||||||
Net Investment Income | 1,203 | 1,137 | 1,044 | ||||||||
Interest Expense | 26 | 25 | 13 | ||||||||
Amortization of DAC | 115 | (50) | 239 | ||||||||
Adjusted Pre-tax Income (Loss) | 246 | 330 | 274 | ||||||||
Life and Retirement | Institutional Markets | Reportable Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 2,912 | 1,900 | 3,168 | ||||||||
Net Investment Income | 885 | 786 | 595 | ||||||||
Interest Expense | 11 | 13 | 6 | ||||||||
Amortization of DAC | 5 | 5 | 5 | ||||||||
Adjusted Pre-tax Income (Loss) | 291 | 246 | 264 | ||||||||
Other Operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 845 | 636 | 1,413 | ||||||||
Net Investment Income | 370 | 45 | 53 | ||||||||
Interest Expense | 1,246 | 1,066 | 968 | ||||||||
Amortization of DAC | 16 | 10 | (9) | ||||||||
Adjusted Pre-tax Income (Loss) | (1,709) | (1,584) | (1,405) | ||||||||
Legacy Portfolio | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total Revenues | 3,016 | 3,039 | 4,391 | ||||||||
Net Investment Income | 2,480 | 2,325 | 2,776 | ||||||||
Interest Expense | 19 | 30 | 122 | ||||||||
Amortization of DAC | 68 | 105 | 76 | ||||||||
Adjusted Pre-tax Income (Loss) | $ 501 | $ 213 | $ 1,470 |
SEGMENT INFORMATION (Details _2
SEGMENT INFORMATION (Details - Continuing operations by operating segment - Pretax operating income to pre-tax income) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciling items from adjusted pre-tax income (loss) to pre-tax income (loss): | |||||||||||
Gain (Loss) on extinguishment of debt | $ (32) | $ (7) | $ 5 | ||||||||
Income (loss) from divested businesses | (75) | 38 | 68 | ||||||||
Net loss reserve discount benefit (charge) | (955) | 371 | (187) | ||||||||
Restructuring and other costs | $ 44 | $ 67 | $ 60 | $ 47 | $ 136 | $ 35 | $ 200 | $ 24 | |||
Revenues | 11,815 | 12,914 | 12,561 | 12,456 | 12,560 | 11,486 | 11,631 | 11,712 | 49,746 | 47,389 | 49,520 |
Adjusted Pre-tax Income (Loss) | $ 1,036 | $ 1,260 | $ 1,837 | $ 1,154 | $ (695) | $ (1,527) | $ 1,252 | $ 1,227 | 5,287 | 257 | 1,466 |
Reconciling items from adjusted pre-tax income to pre-tax income | Total Revenues | |||||||||||
Reconciling items from adjusted pre-tax income (loss) to pre-tax income (loss): | |||||||||||
Changes in fair values of securities used to hedge guaranteed living benefits | 228 | (128) | 146 | ||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) | 0 | 0 | 0 | ||||||||
Changes in fair value of equity securities | 158 | 0 | 0 | ||||||||
Professional fees related to regulatory or accounting changes | 0 | 0 | 0 | ||||||||
Other income (expense) - net | 46 | (53) | (49) | ||||||||
Gain (Loss) on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | 388 | (254) | (1,380) | ||||||||
Income (loss) from divested businesses | 0 | 0 | 0 | ||||||||
Non-operating litigation reserves and settlements | 9 | 11 | 27 | ||||||||
Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 0 | 0 | 0 | ||||||||
Net loss reserve discount benefit (charge) | 0 | 0 | 0 | ||||||||
Pension expense related to a one-time lump sum payment to former employees | 0 | 0 | 0 | ||||||||
Integration and transaction costs associated with acquired business | 0 | 0 | 0 | ||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Reconciling items from adjusted pre-tax income to pre-tax income | Net investment income | |||||||||||
Reconciling items from adjusted pre-tax income (loss) to pre-tax income (loss): | |||||||||||
Changes in fair values of securities used to hedge guaranteed living benefits | 228 | (128) | 146 | ||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) | 0 | 0 | 0 | ||||||||
Changes in fair value of equity securities | 158 | 0 | 0 | ||||||||
Professional fees related to regulatory or accounting changes | 0 | 0 | 0 | ||||||||
Other income (expense) - net | 85 | 0 | 0 | ||||||||
Gain (Loss) on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | (242) | (124) | 0 | ||||||||
Income (loss) from divested businesses | 0 | 0 | 0 | ||||||||
Non-operating litigation reserves and settlements | 0 | 0 | 0 | ||||||||
Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 0 | 0 | 0 | ||||||||
Net loss reserve discount benefit (charge) | 0 | 0 | 0 | ||||||||
Pension expense related to a one-time lump sum payment to former employees | 0 | 0 | 0 | ||||||||
Integration and transaction costs associated with acquired business | 0 | 0 | 0 | ||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Reconciling items from adjusted pre-tax income to pre-tax income | Interest expense | |||||||||||
Reconciling items from adjusted pre-tax income (loss) to 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 (losses) | 0 | 0 | 0 | ||||||||
Changes in fair value of equity securities | 0 | 0 | 0 | ||||||||
Professional fees related to regulatory or accounting changes | 0 | 0 | 0 | ||||||||
Other income (expense) - net | 85 | 0 | 0 | ||||||||
Gain (Loss) on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | (38) | (34) | 0 | ||||||||
Income (loss) from divested businesses | 0 | 0 | 0 | ||||||||
Non-operating litigation reserves and settlements | 0 | 0 | 0 | ||||||||
Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 0 | 0 | 0 | ||||||||
Net loss reserve discount benefit (charge) | 0 | 0 | 0 | ||||||||
Pension expense related to a one-time lump sum payment to former employees | 0 | 0 | 0 | ||||||||
Integration and transaction costs associated with acquired business | 0 | 0 | 0 | ||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Reconciling items from adjusted pre-tax income to pre-tax income | Amortization of DAC | |||||||||||
Reconciling items from adjusted pre-tax income (loss) to 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 (losses) | (52) | (5) | (291) | ||||||||
Changes in fair value of equity securities | 0 | 0 | 0 | ||||||||
Professional fees related to regulatory or accounting changes | 0 | 0 | 0 | ||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||
Gain (Loss) on extinguishment of debt | 0 | 0 | 0 | ||||||||
Net realized capital gains (losses) | 0 | 0 | 0 | ||||||||
Income (loss) from divested businesses | 0 | 0 | 0 | ||||||||
Non-operating litigation reserves and settlements | 0 | 0 | 0 | ||||||||
Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 0 | 0 | 0 | ||||||||
Net loss reserve discount benefit (charge) | 0 | 0 | 0 | ||||||||
Pension expense related to a one-time lump sum payment to former employees | 0 | 0 | 0 | ||||||||
Integration and transaction costs associated with acquired business | 0 | 0 | 0 | ||||||||
Restructuring and other costs | 0 | 0 | 0 | ||||||||
Reconciling items from adjusted pre-tax income to pre-tax income | Adjusted Pre-Tax Income (loss) | |||||||||||
Reconciling items from adjusted pre-tax income (loss) to pre-tax income (loss): | |||||||||||
Changes in fair values of securities used to hedge guaranteed living benefits | 194 | (154) | 146 | ||||||||
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) | 56 | 6 | 303 | ||||||||
Changes in fair value of equity securities | 158 | 0 | 0 | ||||||||
Professional fees related to regulatory or accounting changes | (12) | 0 | 0 | ||||||||
Other income (expense) - net | 0 | 0 | 0 | ||||||||
Gain (Loss) on extinguishment of debt | (32) | (7) | 5 | ||||||||
Net realized capital gains (losses) | 448 | (193) | (1,380) | ||||||||
Income (loss) from divested businesses | (75) | 38 | 68 | ||||||||
Non-operating litigation reserves and settlements | 2 | (19) | 129 | ||||||||
Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 267 | (675) | (303) | ||||||||
Net loss reserve discount benefit (charge) | (955) | 371 | (187) | ||||||||
Pension expense related to a one-time lump sum payment to former employees | 0 | 0 | (60) | ||||||||
Integration and transaction costs associated with acquired business | (24) | (124) | 0 | ||||||||
Restructuring and other costs | $ (218) | $ (395) | $ (413) |
SEGMENT INFORMATION (Details _3
SEGMENT INFORMATION (Details - Identifiable assets and capital expenditures by legal entity) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | $ 525,064 | $ 491,984 |
Capital Expenditures | 304 | 368 |
General Insurance Companies | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 109,871 | 110,007 |
Capital Expenditures | 105 | 171 |
Life and Retirement Companies | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 280,721 | 247,219 |
Capital Expenditures | 104 | 94 |
Other | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 142,745 | 140,428 |
Capital Expenditures | 95 | 103 |
AIG Consolidation and Eliminations | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | (8,273) | (5,670) |
Capital Expenditures | $ 0 | $ 0 |
SEGMENT INFORMATION (Details _4
SEGMENT INFORMATION (Details - Consolidated total revenues and real estate and other fixed assets by major geographic area) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | $ 11,815 | $ 12,914 | $ 12,561 | $ 12,456 | $ 12,560 | $ 11,486 | $ 11,631 | $ 11,712 | $ 49,746 | $ 47,389 | $ 49,520 |
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 1,953 | 2,172 | 1,953 | 2,172 | 2,522 | ||||||
North America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 36,862 | 31,003 | 34,149 | ||||||||
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 1,333 | 1,479 | 1,333 | 1,479 | 1,630 | ||||||
International | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total Revenues | 12,884 | 16,386 | 15,371 | ||||||||
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | $ 620 | $ 693 | $ 620 | $ 693 | $ 892 |
SEGMENT INFORMATION (Details _5
SEGMENT INFORMATION (Details - Narrative) | 12 Months Ended |
Dec. 31, 2019segment | |
General Insurance | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 2 |
Life and Retirement | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 4 |
HELD-FOR-SALE CLASSIFICATION (D
HELD-FOR-SALE CLASSIFICATION (Details - Narrative) - USD ($) $ in Millions | Nov. 25, 2019 | Nov. 13, 2018 | Nov. 14, 2016 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Assets | $ 525,064 | $ 491,984 | ||||||
Net income (loss) on sale of divested businesses | (75) | 38 | $ 68 | |||||
Dispositions | 0 | 0 | (35) | |||||
Goodwill | 4,038 | $ 4,082 | $ 1,594 | $ 1,528 | ||||
Increment loss on sale of business | 2,700 | |||||||
Fortitude Holdings | Fortitude RE | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Parent owneship interest | 100.00% | |||||||
American International Group, Inc. | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Percentage of common stock held after closing of transaction | 3.50% | |||||||
American International Group, Inc. | Fortitude | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Percentage of common stock held after closing of transaction | 3.50% | 80.10% | ||||||
Carlyle FRL | Fortitude | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Voting interest in subsidiary, Percent | 51.60% | |||||||
T&D | Fortitude | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Voting interest in subsidiary, Percent | 25.00% | |||||||
Held for sale [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Goodwill | 98 | |||||||
Loss accrual | 98 | |||||||
AIG Fuji Life Insurance | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Consideration in cash | $ 333 | |||||||
Fortitude | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Consideration in cash | $ 381 | |||||||
Contingent considiration receivable | 95 | $ 95 | ||||||
Contingent consideration receivable, maximum | $ 100 | $ 100 | ||||||
Contingent consideration period | 18 months | 18 months | ||||||
Expected payment to affiliates | $ 1,450 | |||||||
Planned distribution term | 36 months | |||||||
Fortitude | Legacy Life And Retirement Run-Off Lines | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Cession of Reserves | 30,200 | |||||||
Fortitude | Legacy General Insurance Run--Off Lines | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Cession of Reserves | 3,900 | |||||||
Fortitude | TC Group Cayman | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Voting interest in subsidiary, Percent | 19.90% | |||||||
Parent owneship interest | 100.00% | |||||||
Fortitude | American International Group, Inc. | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Percentage of common stock held after closing of transaction | 80.10% | |||||||
Fortitude | Held for sale [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Assets | 2,500 | |||||||
Loss accrual | 98 | |||||||
Fortitude | Held for sale [Member] | Fortitude RE | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Prepaid insurance | $ 2,500 | 2,300 | ||||||
Dispositions | $ (500) | $ (400) |
HELD-FOR-SALE CLASSIFICATION _2
HELD-FOR-SALE CLASSIFICATION (Details - Summary of assets and liabilities held for sale) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||||
Bonds available for sale | $ 251,086 | $ 229,391 | ||
Other bond securities | 6,682 | 11,415 | ||
Mortgage and other loans receivable, net | 46,984 | 43,135 | ||
Other invested assets | 18,792 | 19,341 | ||
Short-term investments | 13,230 | 9,674 | ||
Cash | 2,856 | 2,873 | $ 2,362 | |
Accrued investment income | 2,334 | 2,389 | ||
Premiums and other receivables, net of allowance | 10,274 | 11,011 | ||
Reinsurance assets, net of allowance | 37,977 | 38,172 | ||
Other assets | 16,383 | 13,568 | ||
Separate account assets | 93,272 | 81,847 | ||
Liabilities: | ||||
Liability for unpaid losses and loss adjustment expenses | 78,328 | 83,639 | $ 78,393 | $ 77,077 |
Unearned premiums | 18,269 | 19,248 | ||
Future policy benefits for life and accident and health insurance contracts | 50,512 | 44,935 | ||
Other policyholder funds | 3,428 | 3,568 | ||
Long-term debt | 35,350 | 34,540 | ||
Other Liabilities | 26,609 | 24,636 | ||
Separate account liabilities | 93,272 | $ 81,847 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||
Assets: | ||||
Bonds available for sale | 2,187 | |||
Other bond securities | 13 | |||
Other invested assets | 45 | |||
Short-term investments | 107 | |||
Cash | 63 | |||
Accrued investment income | 19 | |||
Deferred income taxes | (22) | |||
Other assets | 106 | |||
Assets of businesses held for sale | 2,518 | |||
Less: Loss Accrual | (98) | |||
Total assets held for sale | 2,420 | |||
Liabilities: | ||||
Other Liabilities | 15 | |||
Total liabilities held for sale | $ 15 |
BUSINESS COMBINATION (Details -
BUSINESS COMBINATION (Details - Pro Forma Income Statement Information) - Validus Holding Ltd [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
BUSINESS COMBINATION | ||
Total revenues | $ 48,588 | $ 52,009 |
Net income (loss) | 16 | (6,104) |
Net income (loss) attributable to AIG common shareholders | $ (51) | $ (6,132) |
Basic net loss attributable to AIG common shareholders | $ (0.06) | $ (6.59) |
Diluted net loss attributable to AIG common shareholders | $ (0.06) | $ (6.59) |
BUSINESS COMBINATION (Details_2
BUSINESS COMBINATION (Details - Narrative) - USD ($) $ in Millions | Jul. 18, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 4,038 | $ 4,082 | $ 1,594 | $ 1,528 | |
Other invested assets | 18,792 | 19,341 | |||
Validus Holding Ltd [Member] | |||||
Business Acquisition [Line Items] | |||||
Interest acquired | 100.00% | ||||
Cash consideration paid | $ 5,500 | ||||
Validus Holding Ltd [Member] | North America Operating Segment [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 1,800 | ||||
Validus Holding Ltd [Member] | International Operating Segment [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 157 | ||||
AlphaCat [Member] | |||||
Business Acquisition [Line Items] | |||||
Other invested assets | $ 124 | $ 116 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details - Long Term Debt) | Dec. 31, 2019 |
Borrowings supported by assets | GIAs | Maximum | |
Debt Instrument [Line Items] | |
Range of guaranteed minimum return rates (as a percent) | 7.62% |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | $ 251,086 | $ 229,391 |
Other bond securities | 6,682 | 11,415 |
Equity securities | 841 | 1,253 |
Other invested assets | 6,827 | 5,894 |
Derivative Assets, Fair Value, Gross | 5,026 | 4,468 |
Derivative assets, Counterparty netting | (2,427) | (1,713) |
Derivative assets, Cash collateral | (1,806) | (1,840) |
Derivative assets | 793 | 915 |
Short-term investments, portion measured at fair value | 5,343 | 3,015 |
Separate account assets, at fair value | 93,272 | 81,847 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 6,910 | 4,116 |
Other policyholder funds | 3,428 | 3,568 |
Derivative Liabilities, Fair Value, Gross | 4,009 | 3,138 |
Derivative liabilities, Counterparty netting | (2,427) | (1,713) |
Derivative liabilities, Cash collateral | (527) | (187) |
Derivative liabilities | 1,055 | 1,238 |
Other liabilities | 1,100 | 1,265 |
Long-term debt | 2,062 | 2,213 |
Fair Value Using Net Asset Value Per Share or its equivalent | 5,549 | 4,966 |
Recurring Basis | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 251,086 | 229,391 |
Other bond securities | 6,682 | 11,415 |
Equity securities | 841 | 1,253 |
Other invested assets | 1,278 | 928 |
Derivative assets, Counterparty netting | (2,427) | (1,713) |
Derivative assets, Cash collateral | (1,806) | (1,840) |
Derivative assets, Counterparty netting and cash collateral | (4,233) | (3,553) |
Derivative assets | 793 | 915 |
Short-term investments, portion measured at fair value | 5,343 | 3,015 |
Other assets | 2,358 | 58 |
Separate account assets, at fair value | 93,272 | 81,847 |
Fair value assets measured on recurring basis, total | 361,653 | 328,822 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 6,910 | 4,116 |
Derivative liabilities, Counterparty netting | (2,427) | (1,713) |
Derivative liabilities, Cash collateral | (527) | (187) |
Derivative liabilities, Counterparty netting and cash collateral | (2,954) | (1,900) |
Derivative liabilities | 1,055 | 1,238 |
Other liabilities | 45 | 27 |
Long-term debt | 2,062 | 2,213 |
Fair value liabilities measured on recurring basis, total | 10,072 | 7,594 |
Recurring Basis | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 3,200 | 2,890 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 2,749 | 2,023 |
Recurring Basis | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 1,040 | 1,164 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 1,025 | 858 |
Recurring Basis | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 769 | 398 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 139 | 15 |
Recurring Basis | Credit contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 3 | 1 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 89 | 236 |
Recurring Basis | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 14 | 15 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 7 | 6 |
Recurring Basis | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 5,380 | 3,260 |
Other bond securities | 2,121 | 2,665 |
Recurring Basis | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 15,318 | 16,001 |
Recurring Basis | Non-U.S. governments | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 14,869 | 14,525 |
Other bond securities | 0 | 45 |
Recurring Basis | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 149,636 | 130,700 |
Other bond securities | 18 | 1,671 |
Recurring Basis | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 32,805 | 34,377 |
Other bond securities | 489 | 1,714 |
Recurring Basis | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 14,430 | 12,701 |
Other bond securities | 322 | 388 |
Recurring Basis | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 18,648 | 17,827 |
Other bond securities | 3,732 | 4,932 |
Recurring Basis | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 195 | 122 |
Other bond securities | 0 | 11 |
Equity securities | 756 | 1,213 |
Other invested assets | 0 | 0 |
Derivative Assets, Fair Value, Gross | 6 | 135 |
Short-term investments, portion measured at fair value | 2,299 | 2,416 |
Other assets | 57 | 0 |
Separate account assets, at fair value | 89,069 | 77,202 |
Fair value assets measured on recurring basis, total | 92,382 | 81,099 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 0 | 0 |
Derivative Liabilities, Fair Value, Gross | 12 | 16 |
Other liabilities | 0 | 16 |
Long-term debt | 0 | 0 |
Fair value liabilities measured on recurring basis, total | 12 | 32 |
Recurring Basis | Level 1 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 1 | 2 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 4 | 4 |
Recurring Basis | Level 1 | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 0 | 0 |
Recurring Basis | Level 1 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 5 | 133 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 8 | 12 |
Recurring Basis | Level 1 | Credit contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 0 | 0 |
Recurring Basis | Level 1 | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 0 | 0 |
Recurring Basis | Level 1 | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 135 | 53 |
Other bond securities | 0 | 11 |
Recurring Basis | Level 1 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | 0 |
Recurring Basis | Level 1 | Non-U.S. governments | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 60 | 69 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 1 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | 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 | 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 | 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 | 0 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 224,960 | 202,176 |
Other bond securities | 2,944 | 5,559 |
Equity securities | 77 | 13 |
Other invested assets | 86 | 341 |
Derivative Assets, Fair Value, Gross | 4,826 | 4,237 |
Short-term investments, portion measured at fair value | 3,044 | 599 |
Other assets | 2,212 | 0 |
Separate account assets, at fair value | 4,203 | 4,645 |
Fair value assets measured on recurring basis, total | 242,352 | 217,570 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 0 | 0 |
Derivative Liabilities, Fair Value, Gross | 3,905 | 2,873 |
Other liabilities | 45 | 11 |
Long-term debt | 2,062 | 2,213 |
Fair value liabilities measured on recurring basis, total | 6,012 | 5,097 |
Recurring Basis | Level 2 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 3,199 | 2,888 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 2,745 | 2,004 |
Recurring Basis | Level 2 | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 1,034 | 1,159 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 1,025 | 858 |
Recurring Basis | Level 2 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 593 | 190 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 111 | 3 |
Recurring Basis | Level 2 | Credit contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 24 | 8 |
Recurring Basis | Level 2 | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 0 | 0 |
Recurring Basis | Level 2 | U.S. government and government sponsored entities | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 5,245 | 3,207 |
Other bond securities | 2,121 | 2,654 |
Recurring Basis | Level 2 | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 13,197 | 14,001 |
Recurring Basis | Level 2 | Non-U.S. governments | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 14,809 | 14,445 |
Other bond securities | 0 | 45 |
Recurring Basis | Level 2 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 147,973 | 129,836 |
Other bond securities | 18 | 1,671 |
Recurring Basis | Level 2 | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 19,397 | 20,178 |
Other bond securities | 346 | 424 |
Recurring Basis | Level 2 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 13,377 | 11,784 |
Other bond securities | 272 | 311 |
Recurring Basis | Level 2 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 10,962 | 8,725 |
Other bond securities | 187 | 454 |
Recurring Basis | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 25,931 | 27,093 |
Other bond securities | 3,738 | 5,845 |
Equity securities | 8 | 27 |
Other invested assets | 1,192 | 587 |
Derivative Assets, Fair Value, Gross | 194 | 96 |
Short-term investments, portion measured at fair value | 0 | 0 |
Other assets | 89 | 58 |
Separate account assets, at fair value | 0 | 0 |
Fair value assets measured on recurring basis, total | 31,152 | 33,706 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Policyholder contract deposits, portion measured at fair value | 6,910 | 4,116 |
Derivative Liabilities, Fair Value, Gross | 92 | 249 |
Other liabilities | 0 | 0 |
Long-term debt | 0 | 0 |
Fair value liabilities measured on recurring basis, total | 7,002 | 4,365 |
Recurring Basis | Level 3 | Interest rate contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 0 | 15 |
Recurring Basis | Level 3 | Foreign exchange contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 6 | 5 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 0 | 0 |
Recurring Basis | Level 3 | Equity contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 171 | 75 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 20 | 0 |
Recurring Basis | Level 3 | Credit contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 3 | 1 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 65 | 228 |
Recurring Basis | Level 3 | Other contracts | ||
Fair Value, Assets Measured on Recurring Basis | ||
Derivative Assets, Fair Value, Gross | 14 | 15 |
Fair Value, Liabilities Measured on Recurring Basis | ||
Derivative Liabilities, Fair Value, Gross | 7 | 6 |
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 | 2,121 | 2,000 |
Recurring Basis | Level 3 | Non-U.S. governments | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 0 | 11 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 3 | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 1,663 | 864 |
Other bond securities | 0 | 0 |
Recurring Basis | Level 3 | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 13,408 | 14,199 |
Other bond securities | 143 | 1,290 |
Recurring Basis | Level 3 | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 1,053 | 917 |
Other bond securities | 50 | 77 |
Recurring Basis | Level 3 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets Measured on Recurring Basis | ||
Bonds available for sale | 7,686 | 9,102 |
Other bond securities | $ 3,545 | $ 4,478 |
FAIR VALUE MEASUREMENTS (Deta_3
FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | $ 33,610 | $ 35,763 |
Net Realized and Unrealized Gains (Losses) Included in Income | 1,301 | 1,345 |
Other Comprehensive Income (Loss) | 556 | (518) |
Purchases, Sales, Issuances and Settlements, Net | (3,610) | (3,705) |
Gross Transfers In, assets | 2,448 | 2,814 |
Gross Transfers Out, assets | (3,347) | (2,269) |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 180 |
Fair Value End of Year, assets | 30,958 | 33,610 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 180 | 264 |
Liabilities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, liabilities | 4,269 | 4,323 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 1,749 | (462) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | 790 | 406 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 2 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Acquisitions, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | 6,808 | 4,269 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities | (1,140) | 557 |
Policyholder contract deposits | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, liabilities | 4,116 | 4,136 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 1,947 | (334) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | 847 | 314 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Acquisitions, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | 6,910 | 4,116 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities | (1,307) | 495 |
Derivative liabilities, net | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, liabilities | 153 | 187 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (198) | (128) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | (57) | 92 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 2 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Acquisitions, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | (102) | 153 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities | 167 | 62 |
Interest rate contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, liabilities | 15 | 22 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 3 | (1) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | (18) | (6) |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Acquisitions, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | 0 | 15 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities | 1 | 1 |
Foreign exchange contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, liabilities | (5) | 0 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (7) | (10) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | 6 | 5 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Acquisitions, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | (6) | (5) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities | 3 | 3 |
Equity contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, liabilities | (75) | (82) |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (43) | (22) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | (33) | 27 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 2 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Acquisitions, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | (151) | (75) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities | 51 | (35) |
Credit contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, liabilities | 227 | 262 |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (84) | (31) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | (81) | (4) |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Acquisitions, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | 62 | 227 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities | 46 | 31 |
Other contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, liabilities | (9) | (15) |
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (67) | (64) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | 69 | 70 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Acquisitions, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | (7) | (9) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year, liabilities | 66 | 62 |
Bonds available for sale | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 27,093 | 28,996 |
Net Realized and Unrealized Gains (Losses) Included in Income | 835 | 818 |
Other Comprehensive Income (Loss) | 554 | (520) |
Purchases, Sales, Issuances and Settlements, Net | (1,107) | (2,862) |
Gross Transfers In, assets | 1,830 | 2,749 |
Gross Transfers Out, assets | (3,236) | (2,260) |
Reclassified to Held for Sale, assets | (38) | 0 |
Acquisitions | 0 | 172 |
Fair Value End of Year, assets | 25,931 | 27,093 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 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 | ||
Fair Value Beginning of Year, assets | 2,000 | 2,404 |
Net Realized and Unrealized Gains (Losses) Included in Income | (2) | 0 |
Other Comprehensive Income (Loss) | 247 | (152) |
Purchases, Sales, Issuances and Settlements, Net | 282 | (66) |
Gross Transfers In, assets | 51 | 54 |
Gross Transfers Out, assets | (457) | (240) |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 0 |
Fair Value End of Year, assets | 2,121 | 2,000 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Bonds available for sale | Non-U.S. governments | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 11 | 8 |
Net Realized and Unrealized Gains (Losses) Included in Income | 5 | (9) |
Other Comprehensive Income (Loss) | 1 | 5 |
Purchases, Sales, Issuances and Settlements, Net | (6) | (1) |
Gross Transfers In, assets | 5 | 13 |
Gross Transfers Out, assets | (16) | (5) |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 0 |
Fair Value End of Year, assets | 0 | 11 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Bonds available for sale | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 864 | 1,173 |
Net Realized and Unrealized Gains (Losses) Included in Income | (7) | (74) |
Other Comprehensive Income (Loss) | 88 | (2) |
Purchases, Sales, Issuances and Settlements, Net | (540) | (207) |
Gross Transfers In, assets | 1,513 | 780 |
Gross Transfers Out, assets | (255) | (806) |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 0 |
Fair Value End of Year, assets | 1,663 | 864 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 14,199 | 16,136 |
Net Realized and Unrealized Gains (Losses) Included in Income | 782 | 838 |
Other Comprehensive Income (Loss) | 55 | (300) |
Purchases, Sales, Issuances and Settlements, Net | (1,403) | (2,424) |
Gross Transfers In, assets | 83 | 8 |
Gross Transfers Out, assets | (287) | (66) |
Reclassified to Held for Sale, assets | (21) | 0 |
Acquisitions | 0 | 7 |
Fair Value End of Year, assets | 13,408 | 14,199 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 917 | 624 |
Net Realized and Unrealized Gains (Losses) Included in Income | 24 | 23 |
Other Comprehensive Income (Loss) | 47 | (29) |
Purchases, Sales, Issuances and Settlements, Net | 448 | 207 |
Gross Transfers In, assets | 58 | 111 |
Gross Transfers Out, assets | (441) | (20) |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 1 |
Fair Value End of Year, assets | 1,053 | 917 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 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 | ||
Fair Value Beginning of Year, assets | 9,102 | 8,651 |
Net Realized and Unrealized Gains (Losses) Included in Income | 33 | 40 |
Other Comprehensive Income (Loss) | 116 | (42) |
Purchases, Sales, Issuances and Settlements, Net | 112 | (371) |
Gross Transfers In, assets | 120 | 1,783 |
Gross Transfers Out, assets | (1,780) | (1,123) |
Reclassified to Held for Sale, assets | (17) | 0 |
Acquisitions | 0 | 164 |
Fair Value End of Year, assets | 7,686 | 9,102 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Other bond securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 5,845 | 6,512 |
Net Realized and Unrealized Gains (Losses) Included in Income | 446 | 482 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | (2,443) | (1,208) |
Gross Transfers In, assets | 0 | 60 |
Gross Transfers Out, assets | (110) | (9) |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 8 |
Fair Value End of Year, assets | 3,738 | 5,845 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 157 | 193 |
Other bond securities | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 0 | 18 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | 0 | (18) |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 0 |
Fair Value End of Year, assets | 0 | 0 |
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 | ||
Fair Value Beginning of Year, assets | 1,290 | 1,464 |
Net Realized and Unrealized Gains (Losses) Included in Income | 80 | 56 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | (1,227) | (280) |
Gross Transfers In, assets | 0 | 50 |
Gross Transfers Out, assets | 0 | 0 |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 0 |
Fair Value End of Year, assets | 143 | 1,290 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 2 | (10) |
Other bond securities | Commercial mortgage-backed securities (CMBS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 77 | 74 |
Net Realized and Unrealized Gains (Losses) Included in Income | 5 | (2) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | (18) | (5) |
Gross Transfers In, assets | 0 | 10 |
Gross Transfers Out, assets | (14) | 0 |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 0 |
Fair Value End of Year, assets | 50 | 77 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 6 | (5) |
Other bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 4,478 | 4,956 |
Net Realized and Unrealized Gains (Losses) Included in Income | 361 | 428 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | (1,198) | (905) |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | (96) | (9) |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 8 |
Fair Value End of Year, assets | 3,545 | 4,478 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 149 | 208 |
Equity securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 27 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | (2) |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | (20) | 24 |
Gross Transfers In, assets | 2 | 5 |
Gross Transfers Out, assets | (1) | 0 |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 0 |
Fair Value End of Year, assets | 8 | 27 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 1 | 0 |
Mortgage and other loans receivable | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 0 | 5 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | 0 | (5) |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 0 |
Fair Value End of Year, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 0 | 0 |
Other invested assets | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 587 | 250 |
Net Realized and Unrealized Gains (Losses) Included in Income | 20 | 47 |
Other Comprehensive Income (Loss) | 2 | 2 |
Purchases, Sales, Issuances and Settlements, Net | (33) | 288 |
Gross Transfers In, assets | 616 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Reclassified to Held for Sale, assets | 0 | 0 |
Acquisitions | 0 | 0 |
Fair Value End of Year, assets | 1,192 | 587 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | 22 | 71 |
Other assets | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Year, assets | 58 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income | 0 | 0 |
Other Comprehensive Income (Loss) | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net | (7) | 58 |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Reclassified to Held for Sale, assets | 38 | 0 |
Acquisitions | 0 | 0 |
Fair Value End of Year, assets | 89 | 58 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_4
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, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | $ 1,301 | $ 1,345 |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 1,947 | (334) |
Policyholder contract deposits | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [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 and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 1,947 | (334) |
Policyholder contract deposits | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | 0 | 0 |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (198) | (128) |
Derivative liabilities, net | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [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 and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (134) | 5 |
Derivative liabilities, net | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, liabilities | (64) | (133) |
Bonds available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 835 | 818 |
Bonds available for sale | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 862 | 987 |
Bonds available for sale | Net realized capital gains (losses) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | (27) | (165) |
Bonds available for sale | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | (4) |
Other bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 446 | 482 |
Other bond securities | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 226 | 92 |
Other bond securities | Net realized capital gains (losses) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 220 | (3) |
Other bond securities | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 393 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | (2) |
Equity securities | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | (2) |
Equity securities | Net realized capital gains (losses) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 0 |
Equity securities | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 0 |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 20 | 47 |
Other invested assets | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 20 | 57 |
Other invested assets | Net realized capital gains (losses) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 0 |
Other invested assets | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | $ 0 | $ (10) |
FAIR VALUE MEASUREMENTS (Deta_5
FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issuances and settlements) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, Sales, Issuances and Settlements, Net, assets | $ (3,610) | $ (3,705) |
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 | (46) | 33 |
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. | 30 | (18) |
Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (44) | (52) |
Sales, liabilities | 852 | 613 |
Issuances and Settlements, liabilities | (18) | (155) |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 790 | 406 |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 0 | 0 |
Sales, liabilities | 852 | 533 |
Issuances and Settlements, liabilities | (5) | (219) |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 847 | 314 |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (44) | (52) |
Sales, liabilities | 0 | 80 |
Issuances and Settlements, liabilities | (13) | 64 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (57) | 92 |
Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 4,759 | 3,737 |
Sales, assets | (2,256) | (1,391) |
Issuances and Settlements, assets | (6,113) | (6,051) |
Purchases, Sales, Issuances and Settlements, Net, assets | (3,610) | (3,705) |
Bonds available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 4,636 | 3,247 |
Sales, assets | (736) | (1,319) |
Issuances and Settlements, assets | (5,007) | (4,790) |
Purchases, Sales, Issuances and Settlements, Net, assets | (1,107) | (2,862) |
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 | 362 | 105 |
Sales, assets | (19) | (8) |
Issuances and Settlements, assets | (61) | (163) |
Purchases, Sales, Issuances and Settlements, Net, assets | 282 | (66) |
Bonds available for sale | Non-U.S. governments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 5 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | (6) | (6) |
Purchases, Sales, Issuances and Settlements, Net, assets | (6) | (1) |
Bonds available for sale | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 172 | 280 |
Sales, assets | (129) | (216) |
Issuances and Settlements, assets | (583) | (271) |
Purchases, Sales, Issuances and Settlements, Net, assets | (540) | (207) |
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 | 1,418 | 715 |
Sales, assets | (27) | (20) |
Issuances and Settlements, assets | (2,794) | (3,119) |
Purchases, Sales, Issuances and Settlements, Net, assets | (1,403) | (2,424) |
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 | 539 | 277 |
Sales, assets | 0 | (2) |
Issuances and Settlements, assets | (91) | (68) |
Purchases, Sales, Issuances and Settlements, Net, assets | 448 | 207 |
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 | 2,145 | 1,865 |
Sales, assets | (561) | (1,073) |
Issuances and Settlements, assets | (1,472) | (1,163) |
Purchases, Sales, Issuances and Settlements, Net, assets | 112 | (371) |
Other bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 18 | 91 |
Sales, assets | (1,520) | (38) |
Issuances and Settlements, assets | (941) | (1,261) |
Purchases, Sales, Issuances and Settlements, Net, assets | (2,443) | (1,208) |
Other bond securities | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 0 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | 0 | (18) |
Purchases, Sales, Issuances and Settlements, Net, assets | 0 | (18) |
Other bond securities | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 1 |
Sales, assets | (1,101) | (34) |
Issuances and Settlements, assets | (126) | (247) |
Purchases, Sales, Issuances and Settlements, Net, assets | (1,227) | (280) |
Other bond securities | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 18 | 0 |
Sales, assets | (33) | 0 |
Issuances and Settlements, assets | (3) | (5) |
Purchases, Sales, Issuances and Settlements, Net, assets | (18) | (5) |
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 | 0 | 90 |
Sales, assets | (386) | (4) |
Issuances and Settlements, assets | (812) | (991) |
Purchases, Sales, Issuances and Settlements, Net, assets | (1,198) | (905) |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 8 | 49 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | (28) | (25) |
Purchases, Sales, Issuances and Settlements, Net, assets | (20) | 24 |
Mortgage and other loans receivable, net of allowance | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 0 |
Sales, assets | 0 | (5) |
Issuances and Settlements, assets | 0 | 0 |
Purchases, Sales, Issuances 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 | 97 | 350 |
Sales, assets | 0 | (29) |
Issuances and Settlements, assets | (130) | (33) |
Purchases, Sales, Issuances and Settlements, Net, assets | (33) | 288 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 0 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | (7) | 58 |
Purchases, Sales, Issuances and Settlements, Net, assets | $ (7) | $ 58 |
FAIR VALUE MEASUREMENTS (Deta_6
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Assets) $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Obligations of states, municipalities and political subdivisions | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0335 | 0.0391 |
Obligations of states, municipalities and political subdivisions | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0395 | 0.0500 |
Obligations of states, municipalities and political subdivisions | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0365 | 0.0446 |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,633 | $ 1,473 |
Corporate debt | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0348 | 0.0435 |
Corporate debt | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0622 | 0.0599 |
Corporate debt | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0485 | 0.0517 |
Corporate debt | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,087 | $ 445 |
Residential mortgage-backed securities | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0252 | 0.0331 |
Residential mortgage-backed securities | Minimum | Measurement Input Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0400 | 0.0458 |
Residential mortgage-backed securities | Minimum | Measurement Input Loss Severity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.3368 | 0.3966 |
Residential mortgage-backed securities | Minimum | Measurement Input Constant Default Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0168 | 0.0246 |
Residential mortgage-backed securities | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0453 | 0.0550 |
Residential mortgage-backed securities | Maximum | Measurement Input Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.1289 | 0.1400 |
Residential mortgage-backed securities | Maximum | Measurement Input Loss Severity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.7691 | 0.7440 |
Residential mortgage-backed securities | Maximum | Measurement Input Constant Default Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0617 | 0.0739 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0352 | 0.0440 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0844 | 0.0929 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Loss Severity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.5529 | 0.5703 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Constant Default Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0393 | 0.0492 |
Residential mortgage-backed securities | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 11,746 | $ 13,608 |
Certain CDO/ABS | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0292 | 0.0365 |
Certain CDO/ABS | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0491 | 0.0510 |
Certain CDO/ABS | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0391 | 0.0437 |
Certain CDO/ABS | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 6,025 | $ 5,461 |
Commercial mortgage backed securities | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0277 | 0.0329 |
Commercial mortgage backed securities | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0518 | 0.0607 |
Commercial mortgage backed securities | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0397 | 0.0468 |
Commercial mortgage backed securities | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 476 | $ 447 |
FAIR VALUE MEASUREMENTS (Deta_7
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) $ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
GMWB | Minimum | Measurement Input Equity Volatility [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0615 | 0.0605 |
GMWB | Minimum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0016 | 0.0016 |
GMWB | Minimum | Measurement Input Dynamic Lapse Multiplier [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.5000 | 0.2000 |
GMWB | Minimum | Measurement Input Mortality Multiplier [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.3800 | 0.4000 |
GMWB | Minimum | Measurement Input Utilization Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.9000 | 0.9000 |
GMWB | Minimum | Measurement Input Equity Interest Rate Correlation [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.2000 | 0.2000 |
GMWB | Minimum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0012 | 0.0025 |
GMWB | Maximum | Measurement Input Equity Volatility [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.4885 | 0.4765 |
GMWB | Maximum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.1260 | 0.1260 |
GMWB | Maximum | Measurement Input Dynamic Lapse Multiplier [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1.4300 | 1.8000 |
GMWB | Maximum | Measurement Input Mortality Multiplier [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1.4700 | 1.5300 |
GMWB | Maximum | Measurement Input Utilization Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1 | 1 |
GMWB | Maximum | Measurement Input Equity Interest Rate Correlation [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.4000 | 0.4000 |
GMWB | Maximum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0153 | 0.0177 |
GMWB | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 2,474 | $ 1,943 |
Index Annuities | Minimum | Measurement Input Mortality Multiplier [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.2400 | 0.4200 |
Index Annuities | Minimum | Measurement Input Lapse Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0031 | 0.0050 |
Index Annuities | Minimum | Measurement Input Options Budget [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0100 | 0.0100 |
Index Annuities | Minimum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0012 | 0.0025 |
Index Annuities | Maximum | Measurement Input Mortality Multiplier [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1.8000 | 1.6200 |
Index Annuities | Maximum | Measurement Input Lapse Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.5000 | 0.4000 |
Index Annuities | Maximum | Measurement Input Options Budget [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0400 | 0.0300 |
Index Annuities | Maximum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0153 | 0.0177 |
Index Annuities | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 3,895 | $ 1,778 |
Indexed Life | Minimum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0 | 0 |
Indexed Life | Minimum | Measurement Input Mortality Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0 | 0 |
Indexed Life | Minimum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0012 | 0.0025 |
Indexed Life | Maximum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.3797 | 0.1300 |
Indexed Life | Maximum | Measurement Input Mortality Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1 | 1 |
Indexed Life | Maximum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0153 | 0.0177 |
Indexed Life | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 510 | $ 374 |
FAIR VALUE MEASUREMENTS (Deta_8
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, 2019 | Dec. 31, 2018 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $ 5,549 | $ 4,966 |
Unfunded Commitments | 2,666 | 1,956 |
Direct private equity | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 3,220 | 2,250 |
Unfunded Commitments | $ 2,665 | 1,947 |
Average original expected lives | 10 years | |
Direct private equity | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Average original expected lives, Increments | 2 years | |
Direct private equity | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Average original expected lives, Increments | 1 year | |
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 | $ 1,189 | 847 |
Unfunded Commitments | 1,543 | 1,327 |
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 | 400 | 190 |
Unfunded Commitments | 290 | 83 |
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 | 111 | 126 |
Unfunded Commitments | 155 | 127 |
Growth equity | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 422 | 362 |
Unfunded Commitments | 57 | 28 |
Mezzanine | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 325 | 211 |
Unfunded Commitments | 414 | 75 |
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 | 773 | 514 |
Unfunded Commitments | 206 | 307 |
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 | 2,329 | 2,716 |
Unfunded Commitments | 1 | 9 |
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 | 727 | 787 |
Unfunded Commitments | 0 | 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 | 539 | 863 |
Unfunded Commitments | 0 | 0 |
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 | 894 | 887 |
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 | 1 | 21 |
Unfunded Commitments | 0 | 8 |
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 | 168 | 158 |
Unfunded Commitments | $ 1 | $ 1 |
FAIR VALUE MEASUREMENTS (Deta_9
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option credit risk gains (losses) on liabilities | $ 4 | ||
Fair Value Option | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option gain (loss) | $ 1,456 | $ 555 | 2,105 |
Fair Value Option | Bond and equity securities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option gain (loss) | 1,046 | 343 | 1,646 |
Fair Value Option | Alternative investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option gain (loss) | 591 | 213 | 509 |
Fair Value Option | Other, Including Short-term investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option gain (loss) | 0 | 0 | 1 |
Fair Value Option | Long-term debt | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option gain (loss) | (181) | (1) | (49) |
Fair Value Option | Other liabilities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option gain (loss) | $ 0 | $ 0 | $ (2) |
FAIR VALUE MEASUREMENTS (Det_10
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 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, Fair Value | $ 2,062 | $ 2,213 |
Long-term debt, Outstanding Principal Amount | 35,350 | 34,540 |
Fair Value Option | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, Fair Value | 2,062 | 2,213 |
Long-term debt, Outstanding Principal Amount | 1,502 | 1,653 |
Long-term debt, Difference | $ 560 | $ 560 |
FAIR VALUE MEASUREMENTS (Det_11
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 330 | $ 326 | ||
Impairment Charges | 150 | 161 | $ 594 | |
Other investments | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 329 | 315 | ||
Investments in life settlements | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 0 | 0 | ||
Other assets | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 1 | 11 | ||
Level 1 | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 0 | 0 | ||
Level 1 | Other investments | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 0 | 0 | ||
Level 1 | Investments in life settlements | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 0 | 0 | ||
Level 1 | Other assets | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 0 | 0 | ||
Level 2 | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 0 | 0 | ||
Level 2 | Other investments | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 0 | 0 | ||
Level 2 | Investments in life settlements | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 0 | 0 | ||
Level 2 | Other assets | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 0 | 0 | ||
Level 3 | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 330 | 326 | ||
Level 3 | Other investments | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 329 | 315 | ||
Level 3 | Investments in life settlements | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 0 | 0 | ||
Level 3 | Other assets | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | 1 | 11 | ||
Fair value on a non-recurring basis | Other investments | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Impairment Charges | 76 | 97 | 77 | |
Fair value on a non-recurring basis | Investments in life settlements | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Impairment Charges | 0 | 0 | 360 | |
Fair value on a non-recurring basis | Other assets | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Impairment Charges | $ 74 | $ 64 | 157 | |
Fair value on a non-recurring basis | Other assets | Divested Businesses | ||||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | ||||
Fair Value | $ 179 | |||
Impairment Charges | $ 35 |
FAIR VALUE MEASUREMENTS (Det_12
FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | |||
Mortgage and other loans receivable | $ 46,984 | $ 43,135 | |
Short-term investments | 13,230 | 9,674 | |
Cash | 2,856 | 2,873 | $ 2,362 |
Other assets | 16,383 | 13,568 | |
Liabilities: | |||
Other liabilities | 26,609 | 24,636 | |
Long-term debt and debt of consolidated investment entities | 35,350 | 34,540 | |
Carrying Value | |||
Assets: | |||
Mortgage and other loans receivable | 46,984 | 43,135 | |
Other invested assets | 742 | 737 | |
Short-term investments | 7,887 | 6,659 | |
Cash | 2,856 | 2,873 | |
Other assets | 311 | 343 | |
Liabilities: | |||
Policyholder contract deposits associated with investment-type contracts | 126,137 | 120,602 | |
Other liabilities | 3,063 | 1,154 | |
Long-term debt and debt of consolidated investment entities | 33,288 | 32,327 | |
Separate account liabilities - investment contracts | 88,770 | 77,651 | |
Estimated Fair Value | |||
Assets: | |||
Mortgage and other loans receivable | 49,005 | 43,627 | |
Other invested assets | 741 | 737 | |
Short-term investments | 7,887 | 6,659 | |
Cash | 2,856 | 2,873 | |
Other assets | 311 | 343 | |
Liabilities: | |||
Policyholder contract deposits associated with investment-type contracts | 133,246 | 121,374 | |
Other liabilities | 3,063 | 1,154 | |
Long-term debt and debt of consolidated investment entities | 35,907 | 31,597 | |
Separate account liabilities - investment contracts | 88,770 | 77,651 | |
Level 1 | |||
Assets: | |||
Mortgage and other loans receivable | 0 | 0 | |
Other invested assets | 0 | 0 | |
Short-term investments | 0 | 0 | |
Cash | 2,856 | 2,873 | |
Other assets | 291 | 308 | |
Liabilities: | |||
Policyholder contract deposits associated with investment-type contracts | 0 | 0 | |
Other liabilities | 15 | 0 | |
Long-term debt and debt of consolidated investment entities | 0 | 0 | |
Separate account liabilities - investment contracts | 0 | 0 | |
Level 2 | |||
Assets: | |||
Mortgage and other loans receivable | 101 | 105 | |
Other invested assets | 735 | 731 | |
Short-term investments | 7,887 | 6,659 | |
Cash | 0 | 0 | |
Other assets | 20 | 35 | |
Liabilities: | |||
Policyholder contract deposits associated with investment-type contracts | 255 | 339 | |
Other liabilities | 3,048 | 1,154 | |
Long-term debt and debt of consolidated investment entities | 27,024 | 22,822 | |
Separate account liabilities - investment contracts | 88,770 | 77,651 | |
Level 3 | |||
Assets: | |||
Mortgage and other loans receivable | 48,904 | 43,522 | |
Other invested assets | 6 | 6 | |
Short-term investments | 0 | 0 | |
Cash | 0 | 0 | |
Other assets | 0 | 0 | |
Liabilities: | |||
Policyholder contract deposits associated with investment-type contracts | 132,991 | 121,035 | |
Other liabilities | 0 | 0 | |
Long-term debt and debt of consolidated investment entities | 8,883 | 8,775 | |
Separate account liabilities - investment contracts | $ 0 | $ 0 |
INVESTMENTS (Details - Amortize
INVESTMENTS (Details - Amortized cost or cost and fair value of Available for sale securities) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | $ 233,230 | |
Bonds available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 233,230 | $ 225,780 |
Available for sale securities, Gross Unrealized Gains | 18,671 | 8,419 |
Available for sale securities, Gross Unrealized Losses | (815) | (4,808) |
Available-for-sale Securities | 251,086 | 229,391 |
Other details of available for sale securities | ||
Available for sale securities not rated or rated below investment grade | 27,800 | 28,800 |
Bonds available for sale | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 1,186 | 1,211 |
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 | 5,108 | 3,170 |
Available for sale securities, Gross Unrealized Gains | 316 | 132 |
Available for sale securities, Gross Unrealized Losses | (44) | (42) |
Available-for-sale Securities | 5,380 | 3,260 |
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 | 13,960 | 15,421 |
Available for sale securities, Gross Unrealized Gains | 1,390 | 701 |
Available for sale securities, Gross Unrealized Losses | (32) | (121) |
Available-for-sale Securities | 15,318 | 16,001 |
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 | 4 |
Bonds available for sale | Non-U.S. governments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 14,042 | 14,376 |
Available for sale securities, Gross Unrealized Gains | 884 | 451 |
Available for sale securities, Gross Unrealized Losses | (57) | (302) |
Available-for-sale Securities | 14,869 | 14,525 |
Bonds available for sale | Non-U.S. governments | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | (18) | 0 |
Bonds available for sale | Corporate debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 138,046 | 130,436 |
Available for sale securities, Gross Unrealized Gains | 12,090 | 3,911 |
Available for sale securities, Gross Unrealized Losses | (500) | (3,647) |
Available-for-sale Securities | 149,636 | 130,700 |
Bonds available for sale | Corporate debt | AOCI- OTTI | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Other-Than-Temporary Impairments in AOCI | 7 | 4 |
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 | 62,074 | 62,377 |
Available for sale securities, Gross Unrealized Gains | 3,991 | 3,224 |
Available for sale securities, Gross Unrealized Losses | (182) | (696) |
Available-for-sale Securities | 65,883 | 64,905 |
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 | 1,197 | 1,203 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 29,802 | 31,940 |
Available for sale securities, Gross Unrealized Gains | 3,067 | 2,754 |
Available for sale securities, Gross Unrealized Losses | (64) | (317) |
Available-for-sale Securities | 32,805 | 34,377 |
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 | 1,149 | 1,155 |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | 13,879 | 12,673 |
Available for sale securities, Gross Unrealized Gains | 576 | 242 |
Available for sale securities, Gross Unrealized Losses | (25) | (214) |
Available-for-sale Securities | 14,430 | 12,701 |
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 | 34 | 31 |
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 | 18,393 | 17,764 |
Available for sale securities, Gross Unrealized Gains | 348 | 228 |
Available for sale securities, Gross Unrealized Losses | (93) | (165) |
Available-for-sale Securities | 18,648 | 17,827 |
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 | $ 14 | $ 17 |
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) - Bonds available for sale $ in Millions | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) |
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | $ 24,331 | $ 70,800 |
Gross Unrealized Losses, Less than 12 Months | 493 | 2,679 |
Fair Value, 12 Months or More | 7,362 | 36,110 |
Gross Unrealized Losses, 12 Months or More | 322 | 2,129 |
Fair Value, Total | 31,693 | 106,910 |
Gross Unrealized Losses, Total | $ 815 | 4,808 |
Number of securities in an unrealized loss position | item | 5,695 | |
Number of individual securities in continuous unrealized loss position for longer than twelve months | item | 1,254 | |
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 | $ 1,461 | 574 |
Gross Unrealized Losses, Less than 12 Months | 44 | 13 |
Fair Value, 12 Months or More | 63 | 873 |
Gross Unrealized Losses, 12 Months or More | 0 | 29 |
Fair Value, Total | 1,524 | 1,447 |
Gross Unrealized Losses, Total | 44 | 42 |
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 | 672 | 1,965 |
Gross Unrealized Losses, Less than 12 Months | 21 | 51 |
Fair Value, 12 Months or More | 246 | 1,530 |
Gross Unrealized Losses, 12 Months or More | 11 | 70 |
Fair Value, Total | 918 | 3,495 |
Gross Unrealized Losses, Total | 32 | 121 |
Non-U.S. governments | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 1,105 | 3,851 |
Gross Unrealized Losses, Less than 12 Months | 12 | 149 |
Fair Value, 12 Months or More | 343 | 2,422 |
Gross Unrealized Losses, 12 Months or More | 45 | 153 |
Fair Value, Total | 1,448 | 6,273 |
Gross Unrealized Losses, Total | 57 | 302 |
Corporate debt | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 11,868 | 47,364 |
Gross Unrealized Losses, Less than 12 Months | 319 | 2,181 |
Fair Value, 12 Months or More | 2,405 | 20,056 |
Gross Unrealized Losses, 12 Months or More | 181 | 1,466 |
Fair Value, Total | 14,273 | 67,420 |
Gross Unrealized Losses, Total | 500 | 3,647 |
Residential mortgage-backed securities (RMBS) | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 3,428 | 5,231 |
Gross Unrealized Losses, Less than 12 Months | 28 | 94 |
Fair Value, 12 Months or More | 1,367 | 5,641 |
Gross Unrealized Losses, 12 Months or More | 36 | 223 |
Fair Value, Total | 4,795 | 10,872 |
Gross Unrealized Losses, Total | 64 | 317 |
Commercial mortgage-backed securities (CMBS) | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 1,877 | 2,646 |
Gross Unrealized Losses, Less than 12 Months | 16 | 47 |
Fair Value, 12 Months or More | 367 | 4,264 |
Gross Unrealized Losses, 12 Months or More | 9 | 167 |
Fair Value, Total | 2,244 | 6,910 |
Gross Unrealized Losses, Total | 25 | 214 |
Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ||
Fair value and gross unrealized losses on AIG's available for sale securities | ||
Fair Value, Less than 12 Months | 3,920 | 9,169 |
Gross Unrealized Losses, Less than 12 Months | 53 | 144 |
Fair Value, 12 Months or More | 2,571 | 1,324 |
Gross Unrealized Losses, 12 Months or More | 40 | 21 |
Fair Value, Total | 6,491 | 10,493 |
Gross Unrealized Losses, Total | $ 93 | $ 165 |
INVESTMENTS (Details - Amorti_2
INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Amortized Cost, Total | $ 233,230 | |
Fixed Maturity Securities Available for Sale, Fair Value, Total | 251,086 | $ 229,391 |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | 10,268 | |
Due after one year through five years, Amortized Cost | 44,017 | |
Due after five years through ten years, Amortized Cost | 42,074 | |
Due after ten years, Amortized Cost | 74,797 | |
Mortgage-backed, asset-backed and collateralized, Amortized Cost | 62,074 | |
Available for sale securities, Amortized Cost, Total | 233,230 | $ 225,780 |
Due in one year or less, Fair Value | 10,441 | |
Due after one year through five years, Fair Value | 45,226 | |
Due after five years through ten years, Fair Value | 44,858 | |
Due after ten years, Fair Value | 84,678 | |
Mortgage-backed, asset-backed and collateralized, Fair Value | 65,883 | |
Fixed Maturity Securities Available for Sale, Fair Value, Total | $ 251,086 |
INVESTMENTS (Details - Realized
INVESTMENTS (Details - Realized gains and gross realized losses from sales or maturities) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | $ 650 | $ 347 | $ 832 |
Gross Realized Losses | 330 | 476 | 319 |
Aggregate fair value of available for sale securities sold | 22,000 | 25,100 | 31,300 |
Net realized capital gains (losses) | 320 | (129) | 500 |
Fixed maturity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | 650 | 331 | 725 |
Gross Realized Losses | 330 | 476 | 300 |
Equity securities available for sale | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | 0 | 16 | 107 |
Gross Realized Losses | $ 0 | $ 0 | $ 19 |
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, 2019 | Dec. 31, 2018 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 7,523 | $ 12,668 |
Other Securities, Percent of Total | 100.00% | 100.00% |
Fixed maturity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 6,682 | $ 11,415 |
Other Securities, Percent of Total | 89.00% | 90.00% |
Fixed maturity securities | U.S. government and government sponsored entities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 2,121 | $ 2,665 |
Other Securities, Percent of Total | 28.00% | 21.00% |
Fixed maturity securities | Non-U.S. governments | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 0 | $ 45 |
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 | $ 18 | $ 1,671 |
Other Securities, Percent of Total | 0.00% | 13.00% |
Fixed maturity securities | Mortgage-backed, asset-backed and collateralized | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 4,543 | $ 7,034 |
Other Securities, Percent of Total | 61.00% | 56.00% |
Fixed maturity securities | Residential mortgage-backed securities (RMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 489 | $ 1,714 |
Other Securities, Percent of Total | 7.00% | 14.00% |
Fixed maturity securities | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 322 | $ 388 |
Other Securities, Percent of Total | 4.00% | 3.00% |
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 | $ 3,732 | $ 4,932 |
Other Securities, Percent of Total | 50.00% | 39.00% |
Equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 841 | $ 1,253 |
Other Securities, Percent of Total | 11.00% | 10.00% |
INVESTMENTS (Details - Carrying
INVESTMENTS (Details - Carrying values of other invested assets) - USD ($) $ in Millions | 12 Months Ended | 96 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2027 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments [Line Items] | ||||
Other invested assets | $ 18,792 | $ 19,341 | ||
Other invested assets, gross unrealized losses | $ 45 | |||
Alternative investments | ||||
Investments [Line Items] | ||||
Other invested assets | 8,845 | 8,966 | ||
Investment real estate | ||||
Investments [Line Items] | ||||
Other invested assets | 8,491 | 8,935 | ||
All other investments | ||||
Investments [Line Items] | ||||
Other invested assets | 1,456 | 1,440 | ||
Hedge Funds | ||||
Investments [Line Items] | ||||
Other invested assets | 3,300 | 4,200 | ||
Net of accumulated depreciation on investment in real estate | $ 703 | 598 | ||
Hedge Fund Fair Value Redemption, Additional Percentage | 88.00% | 12.00% | ||
Direct private equity | ||||
Investments [Line Items] | ||||
Other invested assets | $ 5,200 | 4,300 | ||
Affordable Housing Partnerships | ||||
Investments [Line Items] | ||||
Other invested assets | $ 331 | $ 438 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating results: | |||
Total revenues | $ 8,045 | $ 15,310 | $ 13,066 |
Total expenses | (3,115) | (3,200) | (6,835) |
Net income | 4,930 | 12,110 | $ 6,231 |
Balance sheet: | |||
Total assets | 93,773 | 96,915 | |
Total liabilities | (14,218) | (21,063) | |
Equity method investments, Carrying Value | $ 5,911 | $ 6,520 |
INVESTMENTS (Details - Life set
INVESTMENTS (Details - Life settlements) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
INVESTMENTS | |
Income recognized on life settlement contracts | $ 266 |
INVESTMENTS (Details - Componen
INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Investment Income [Line Items] | |||
Total investment income | $ 15,144 | $ 12,969 | $ 14,699 |
Investment expenses | 525 | 493 | 520 |
Net investment income | 14,619 | 12,476 | 14,179 |
Fixed maturity securities, including short-term investments | |||
Net Investment Income [Line Items] | |||
Total investment income | 10,768 | 10,323 | 10,435 |
Other fixed maturity securities | |||
Net Investment Income [Line Items] | |||
Total investment income | 1,015 | 7 | 660 |
Equity securities | |||
Net Investment Income [Line Items] | |||
Total investment income | 159 | (162) | 34 |
Interest on mortgage and other loans | |||
Net Investment Income [Line Items] | |||
Total investment income | 2,030 | 1,874 | 1,661 |
Alternative investments | |||
Net Investment Income [Line Items] | |||
Total investment income | 1,088 | 655 | 1,475 |
Real estate | |||
Net Investment Income [Line Items] | |||
Total investment income | 304 | 257 | 144 |
Other investments | |||
Net Investment Income [Line Items] | |||
Total investment income | $ (220) | $ 15 | $ 290 |
INVESTMENTS (Details - Compon_2
INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other-than-temporary impairments: | |||
Severity | $ 0 | $ 0 | $ (2) |
Change in intent | (3) | (87) | (9) |
Foreign currency declines | (18) | (15) | (11) |
Issuer-specific credit events | (147) | (147) | (234) |
Adverse projected cash flows | (6) | (2) | (4) |
Provision for loan losses | (46) | (92) | (50) |
Foreign exchange transactions | 227 | (182) | 489 |
Variable annuity embedded derivatives, net of related hedges | (294) | 304 | (1,374) |
All other derivatives and hedge accounting | (22) | 338 | (368) |
Impairments on investments in life settlements | 0 | 0 | (360) |
Loss on sale of private equity funds | 0 | (321) | 0 |
Other | 621 | 203 | 30 |
Total net realized capital gains (losses) | 632 | (130) | (1,380) |
Corporate Headquarters | |||
Other-than-temporary impairments: | |||
Total net realized capital gains (losses) | 200 | ||
Real Estate Properties | |||
Other-than-temporary impairments: | |||
Total net realized capital gains (losses) | 300 | ||
OneMain Holdings | |||
Other-than-temporary impairments: | |||
Total net realized capital gains (losses) | 96 | ||
Castle Holdings | |||
Other-than-temporary impairments: | |||
Total net realized capital gains (losses) | 49 | ||
Fixed maturity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Sales of securities | 320 | (145) | 425 |
Equity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Sales of securities | $ 0 | $ 16 | $ 88 |
INVESTMENTS (Details - Increase
INVESTMENTS (Details - Increase (decrease) in unrealized appreciation (depreciation)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (decrase) in unrealized appreciation (depreciation) of investments | |||
Net gains and losses recognized during the year on equity securities | $ 903 | $ 158 | |
Less: Net gains and losses recognized during the year on equity securities sold during the year | 198 | 79 | |
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date | 705 | 79 | |
Change in unrealized appreciation (depreciation) of investments | 14,175 | (10,008) | $ 4,062 |
Fixed maturity securities | |||
Increase (decrase) in unrealized appreciation (depreciation) of investments | |||
Change in unrealized appreciation (depreciation) of investments | 14,245 | (9,920) | |
Equity securities | |||
Increase (decrase) in unrealized appreciation (depreciation) of investments | |||
Net gains and losses recognized during the year on equity securities | 159 | (184) | |
Less: Net gains and losses recognized during the year on equity securities sold during the year | 39 | 56 | |
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date | 120 | (240) | |
Other investments | |||
Increase (decrase) in unrealized appreciation (depreciation) of investments | |||
Change in unrealized appreciation (depreciation) of investments | (70) | (88) | |
Other invested assets | |||
Increase (decrase) in unrealized appreciation (depreciation) of investments | |||
Net gains and losses recognized during the year on equity securities | 744 | 342 | |
Less: Net gains and losses recognized during the year on equity securities sold during the year | 159 | 23 | |
Unrealized gains and losses recognized during the reporting period on equity securities still held at the reporting date | $ 585 | $ 319 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fixed maturity securities | |||
Other Than Temporary Impairment Credit Losses Recognized in Earnings | |||
Balance, beginning of year | $ 0 | $ 526 | $ 1,098 |
Increases due to: | |||
Credit impairments on new securities subject to impairment losses | 136 | 59 | 122 |
Additional credit impairments on previously impaired securities | 17 | 90 | 74 |
Reductions due to: | |||
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell | (64) | (145) | (99) |
Accretion on securities previously impaired due to credit | (20) | (530) | (669) |
Balance, end of year | $ 69 | $ 0 | $ 526 |
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, 2019 | Dec. 31, 2018 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 233,230 | $ 225,780 |
Purchased Credit Impaired (PCI) Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Contractually required payments (principal and interest) | 35,139 | |
Cash flows expected to be collected | 28,720 | |
Recorded investment in acquired securities | 19,382 | |
Outstanding principal balance | 10,476 | 12,495 |
Amortized cost | 6,970 | 8,646 |
Fair value | 8,664 | 10,280 |
Available for sale securities | Purchased Credit Impaired (PCI) Securities | ||
Changes in activity for the accretable yield on PCI securities: | ||
Balance, beginning of year | 7,210 | 7,501 |
Newly purchased PCI securities | 17 | 33 |
Disposals | 0 | (21) |
Accretion | (624) | (722) |
Effect of changes in interest rate indices | (541) | 207 |
Net reclassification from (to) non-accretable difference, including effects of prepayments | (350) | 212 |
Balance, end of year | 5,705 | 7,210 |
Available for sale securities | Purchased Credit Impaired (PCI) Securities | Held for sale [Member] | ||
Changes in activity for the accretable yield on PCI securities: | ||
Activities related to businesses reclassified to held for sale | $ (7) | $ 0 |
INVESTMENTS (Details - Pledged
INVESTMENTS (Details - Pledged Investments) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments [Line Items] | ||
Fair value of securities collateral pledged | $ 2,567 | $ 426 |
Fair value of amount sold or repledged | 121 | 106 |
Short-term investments held in escrow | 330 | 273 |
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements | 8,700 | 7,900 |
FHLBs | ||
Investments [Line Items] | ||
Fair value of fixed maturities securities available for sale | 4,300 | 4,200 |
Amount owned by subsidiaries | 194 | 202 |
Residential loans pledged as collateral | 1,800 | 2,100 |
Secured financing | ||
Investments [Line Items] | ||
Amounts Borrowed Under Repurchase and Securities Lending Agreements | 3,100 | 1,200 |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 232 | 288 |
Securities Lending Agreements, Fair Value of Collateral | 2,798 | 884 |
Amounts Loaned under Reverse Repurchase Agreements | 2,600 | 426 |
Secured financing | Fixed Maturities [Member] | ||
Investments [Line Items] | ||
Fair value of fixed maturities securities available for sale | 3,030 | 1,050 |
Fair value of other bond securities | 0 | 122 |
Secured financing | Overnight and continuous | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 24 | 104 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Up to 30 Days | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 126 | 131 |
Securities Lending Agreements, Fair Value of Collateral | 1,071 | 401 |
Secured financing | 31 to 90 Days | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 82 | 53 |
Securities Lending Agreements, Fair Value of Collateral | 1,333 | 483 |
Secured financing | 91 to 364 Days | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 394 | 0 |
Secured financing | 365 Days or Greater | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 386 | 180 |
Secured financing | Bonds available for sale | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 73 | 60 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 29 |
Secured financing | Bonds available for sale | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 159 | 106 |
Securities Lending Agreements, Fair Value of Collateral | 2,018 | 675 |
Secured financing | Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 394 | |
Secured financing | Bonds available for sale | Overnight and continuous | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | Overnight and continuous | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 2 | 25 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | Overnight and continuous | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 22 | 51 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | Overnight and continuous | Residential mortgage-backed securities (RMBS) | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | Up to 30 Days | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 50 |
Secured financing | Bonds available for sale | Up to 30 Days | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 71 | 35 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 21 |
Secured financing | Bonds available for sale | Up to 30 Days | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 55 | 55 |
Securities Lending Agreements, Fair Value of Collateral | 1,071 | 330 |
Secured financing | Bonds available for sale | Up to 30 Days | Residential mortgage-backed securities (RMBS) | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | 31 to 90 Days | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 386 | 130 |
Secured financing | Bonds available for sale | 31 to 90 Days | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 8 |
Secured financing | Bonds available for sale | 31 to 90 Days | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 82 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 947 | 345 |
Secured financing | Bonds available for sale | 31 to 90 Days | Residential mortgage-backed securities (RMBS) | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | 91 to 364 Days | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | 91 to 364 Days | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | 91 to 364 Days | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | 91 to 364 Days | Residential mortgage-backed securities (RMBS) | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 394 | |
Secured financing | Bonds available for sale | 365 Days or Greater | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | 365 Days or Greater | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | 365 Days or Greater | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | 365 Days or Greater | Residential mortgage-backed securities (RMBS) | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 3 |
Secured financing | Other bond securities | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 108 |
Secured financing | Other bond securities | U.S. government and government sponsored entities | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 11 |
Secured financing | Other bond securities | Overnight and continuous | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | Other bond securities | Overnight and continuous | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 17 |
Secured financing | Other bond securities | Overnight and continuous | U.S. government and government sponsored entities | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 11 |
Secured financing | Other bond securities | Up to 30 Days | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 3 |
Secured financing | Other bond securities | Up to 30 Days | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 38 |
Secured financing | Other bond securities | Up to 30 Days | U.S. government and government sponsored entities | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | Other bond securities | 31 to 90 Days | Non-U.S. governments | ||
Investments [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 | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 53 |
Secured financing | Other bond securities | 31 to 90 Days | U.S. government and government sponsored entities | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | Other bond securities | 91 to 364 Days | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | Other bond securities | 91 to 364 Days | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | Other bond securities | 91 to 364 Days | U.S. government and government sponsored entities | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | Other bond securities | 365 Days or Greater | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | Other bond securities | 365 Days or Greater | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | Other bond securities | 365 Days or Greater | U.S. government and government sponsored entities | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
GIAs | ||
Investments [Line Items] | ||
Fair value of other bond securities | $ 1,500 | $ 1,600 |
LENDING ACTIVITIES (Details - C
LENDING ACTIVITIES (Details - Composition of Mortgages and other loans receivable) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 47,422 | $ 43,532 | ||
Allowance for credit losses | (438) | (397) | $ (322) | $ (297) |
Mortgage and other loans receivable, net | 46,984 | 43,135 | ||
Commercial mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 36,170 | 32,882 | ||
Allowance for credit losses | $ (336) | $ (318) | $ (247) | $ (194) |
Commercial mortgages | California | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of mortgage loans in geographic area | 10.00% | 11.00% | ||
Commercial mortgages | New York | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of mortgage loans in geographic area | 23.00% | 22.00% | ||
Residential Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 6,683 | $ 6,532 | ||
Life insurance policy loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | 2,065 | 2,147 | ||
Commercial loans, other loans and notes receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total mortgage and other loans receivable | $ 2,504 | $ 1,971 |
LENDING ACTIVITIES (Details -_2
LENDING ACTIVITIES (Details - Credit quality indicators for commercial mortgage loans) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Commercial Mortgage Recorded Investment [Line Items] | ||||
Mortgage and other loans receivable, net | $ 46,984 | $ 43,135 | ||
Allowance for credit losses | 438 | 397 | $ 322 | $ 297 |
Total mortgage and other loans receivable | $ 47,422 | $ 43,532 | ||
Debt Coverage Ratio | 2 | 1.9 | ||
Average Loan to Value Ratio | 56.00% | 58.00% | ||
Apartments | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | $ 13,698 | $ 11,190 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 1 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 13,699 | 11,190 | ||
Allowance for credit losses, Specific | 0 | 0 | ||
Allowance for credit losses, General | 81 | 122 | ||
Allowance for credit losses | 81 | 122 | ||
Offices | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 10,553 | 9,774 | ||
Restructured | 89 | 96 | ||
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 | 10,642 | 9,870 | ||
Allowance for credit losses, Specific | 2 | 2 | ||
Allowance for credit losses, General | 153 | 104 | ||
Allowance for credit losses | 155 | 106 | ||
Retail | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 5,332 | 5,645 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 5,332 | 5,645 | ||
Allowance for credit losses, Specific | 1 | 0 | ||
Allowance for credit losses, General | 44 | 51 | ||
Allowance for credit losses | 45 | 51 | ||
Industrial | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 3,663 | 3,074 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 3,663 | 3,074 | ||
Allowance for credit losses, Specific | 0 | 0 | ||
Allowance for credit losses, General | 30 | 13 | ||
Allowance for credit losses | 30 | 13 | ||
Hotel | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 2,211 | 2,507 | ||
Restructured | 101 | 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 | 2,312 | 2,523 | ||
Allowance for credit losses, Specific | 6 | 1 | ||
Allowance for credit losses, General | 14 | 19 | ||
Allowance for credit losses | 20 | 20 | ||
Others | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
In good standing | 522 | 580 | ||
Restructured | 0 | 0 | ||
90 days or less delinquent | 0 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 522 | 580 | ||
Allowance for credit losses, Specific | 0 | 0 | ||
Allowance for credit losses, General | 5 | 6 | ||
Allowance for credit losses | $ 5 | $ 6 | ||
Commercial mortgages | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Number of loans in good standing | loan | 736 | 762 | ||
Number of loans restructured | loan | 3 | 2 | ||
Number of loans 90 days or less delinquent | loan | 1 | 0 | ||
Number of loans greater than 90 days delinquent or in process of foreclosure | loan | 0 | 0 | ||
Number of Loans | loan | 740 | 764 | ||
In good standing | $ 35,979 | $ 32,770 | ||
Restructured | 190 | 112 | ||
90 days or less delinquent | 1 | 0 | ||
Greater than 90 days delinquent or in process of foreclosure | 0 | 0 | ||
Mortgage and other loans receivable, net | 36,170 | 32,882 | ||
Allowance for credit losses, Specific | 9 | 3 | ||
Allowance for credit losses, General | 327 | 315 | ||
Allowance for credit losses | $ 336 | $ 318 | ||
Percentage of loans that are current as to payments of principal and interest | 99.00% | 100.00% | ||
Percentage restructured | 1.00% | 0.00% | ||
Percentage 90 days or less delinquent | 0.00% | 0.00% | ||
Percentage greater than 90 days delinquent or in foreclosure | 0.00% | 0.00% | ||
Percentage Total | 100.00% | 100.00% | ||
Percentage of loans with valuation allowance, Specific | 0.00% | 0.00% | ||
Percentage of loans with valuation allowance, Genaral | 1.00% | 1.00% | ||
Percentage of loans with allowance for losses | 1.00% | 1.00% | ||
Total mortgage and other loans receivable | $ 36,170 | $ 32,882 | ||
Commercial mortgages | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 32,404 | 29,336 | ||
Commercial mortgages | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 3,347 | 2,966 | ||
Commercial mortgages | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 419 | 580 | ||
Commercial mortgages | Less than 65% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 25,698 | 21,997 | ||
Commercial mortgages | Less than 65% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 23,013 | 19,204 | ||
Commercial mortgages | Less than 65% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 2,440 | 2,543 | ||
Commercial mortgages | Less than 65% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 245 | 250 | ||
Commercial mortgages | 65% to 75% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 9,946 | 9,563 | ||
Commercial mortgages | 65% to 75% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 9,007 | 9,060 | ||
Commercial mortgages | 65% to 75% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 899 | 300 | ||
Commercial mortgages | 65% to 75% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 40 | 203 | ||
Commercial mortgages | 76% to 80% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 206 | 511 | ||
Commercial mortgages | 76% to 80% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 200 | 476 | ||
Commercial mortgages | 76% to 80% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 6 | 20 | ||
Commercial mortgages | 76% to 80% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 0 | 15 | ||
Commercial mortgages | Greater than 80% | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 320 | 811 | ||
Commercial mortgages | Greater than 80% | Greater than 1.2x | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 184 | 596 | ||
Commercial mortgages | Greater than 80% | 1.00X - 1.20X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | 2 | 103 | ||
Commercial mortgages | Greater than 80% | Less than 1.00X | ||||
Commercial Mortgage Recorded Investment [Line Items] | ||||
Total mortgage and other loans receivable | $ 134 | $ 112 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | $ 397 | $ 322 | $ 297 |
Loans charged off | (5) | (19) | (25) |
Recoveries of loans previously charged off | 0 | 1 | 1 |
Net charge-offs | (5) | (18) | (24) |
Provision for loan losses | 46 | 93 | 49 |
Allowance, end of period | 438 | 397 | 322 |
Loans modified in a troubled debt restructuring | 86 | ||
Commercial mortgages | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | 318 | 247 | 194 |
Loans charged off | (2) | (17) | (22) |
Recoveries of loans previously charged off | 0 | 0 | 0 |
Net charge-offs | (2) | (17) | (22) |
Provision for loan losses | 20 | 88 | 75 |
Allowance, end of period | 336 | 318 | 247 |
Allowance related to individually assessed credit losses | 10 | 3 | 5 |
Commercial mortgage loans | 148 | 54 | 82 |
Other Loans | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Allowance, beginning of year | 79 | 75 | 103 |
Loans charged off | (3) | (2) | (3) |
Recoveries of loans previously charged off | 0 | 1 | 1 |
Net charge-offs | (3) | (1) | (2) |
Provision for loan losses | 26 | 5 | (26) |
Allowance, end of period | $ 102 | $ 79 | $ 75 |
REINSURANCE (Details - Suppleme
REINSURANCE (Details - Supplemental information for loss and benefit reserves, gross and net of ceded reinsurance) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effects of Reinsurance [Line Items] | ||||
Allowance for doubtful accounts on reinsurance assets | $ 111 | $ 140 | ||
Supplemental information for loss and benefit reserves | ||||
Liability for unpaid losses and loss adjustment expenses, As Reported | (78,328) | (83,639) | $ (78,393) | $ (77,077) |
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance | (47,259) | (51,949) | $ (51,685) | $ (61,545) |
Future policy benefits for life and accident and health insurance contracts, as reported | (50,512) | (44,935) | ||
Future policy benefits for life and accident and health insurance contracts, Net of Reinsurance | (49,670) | (43,936) | ||
Policyholder contract deposits, As Reported | (151,869) | (142,262) | ||
Policyholder contract deposits, Net of Reinsurance | (150,944) | (141,407) | ||
Reserve for unearned premiums, As Reported | (18,269) | (19,248) | ||
Reserve for unearned premiums, Net of Reinsurance | (15,067) | (16,300) | ||
Reinsurance assets | 36,038 | 36,492 | ||
Reinsurance assets, paid loss recoveries | $ 2,050 | $ 1,820 |
REINSURANCE (Details - Short-Du
REINSURANCE (Details - Short-Duration Reinsurance) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premiums earned: | ||||
Net | $ 30,561 | $ 30,614 | $ 31,374 | |
Short-duration insurance | ||||
Premiums Written | ||||
Direct | 29,338 | 30,368 | 30,229 | |
Assumed | 5,808 | 4,186 | 3,065 | |
Ceded | (9,692) | (7,757) | (7,535) | |
Net Amount | 25,454 | 26,797 | 25,759 | |
Premiums earned: | ||||
Direct | 30,017 | 31,450 | 30,928 | |
Assumed | 6,395 | 4,638 | 3,374 | |
Ceded | (9,526) | (8,164) | (7,904) | |
Net | 26,886 | 27,924 | 26,398 | |
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | 4,700 | 9,800 | 1,500 | |
Ceded loss reserves under retroactive agreements | 13,900 | 13,800 | ||
Deferred Gain (Loss) Retroactive Reinsurance | 1,800 | 1,800 | ||
Effect on income from amortization of the deferred gain | 219 | $ 394 | $ 316 | |
Short-duration insurance | NICO | ||||
Premiums earned: | ||||
Transfer of reserve, percent | 80.00% | |||
Ceded losses paid, percent | 80.00% | |||
Short-duration insurance | Maximum | NICO | ||||
Premiums earned: | ||||
Ceded losses paid in excess, net | 25,000 | |||
Ceded losses paid aggregate limit, net | $ 25,000 |
REINSURANCE (Details - Long-Dur
REINSURANCE (Details - Long-Duration Reinsurance) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 01, 2016USD ($) | Feb. 07, 2014USD ($) | |
Policy Fees | ||||||
Net | $ 3,015 | $ 2,791 | $ 2,935 | |||
Life insurance ratios | ||||||
Assumed insurance as a percent of gross premiums | 1.80% | |||||
New letter of credit | ||||||
Letters of credit | ||||||
Letters of credit obtained on a bilateral basis related to long-duration intercompany reinsurance transactions | $ 400 | |||||
Number of new bilateral letters of credit | 2 | |||||
Long-duration insurance in force | ||||||
Premiums earned: | ||||||
Direct | $ 1,185,771 | 1,094,774 | 1,061,095 | |||
Assumed | 279 | 300 | 321 | |||
Ceded | (264,732) | (228,846) | (202,402) | |||
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | 1,000 | 778 | 1,000 | |||
Life insurance ratios | ||||||
Long-duration insurance in force ceded | $ 264,732 | $ 228,846 | $ 202,402 | |||
Assumed insurance as a percentage of gross long-duration insurance in force | 0.02% | 0.03% | 0.03% | |||
Assumed insurance as a percent of gross premiums | 5.00% | 1.60% | 0.20% | |||
Life insurance companies | ||||||
Premiums earned: | ||||||
Direct | $ 4,363 | $ 3,489 | $ 5,771 | |||
Assumed | 228 | 56 | 15 | |||
Ceded | (916) | (855) | (810) | |||
Net | 3,675 | 2,690 | 4,976 | |||
Policy Fees | ||||||
Direct | 3,016 | 2,792 | 2,936 | |||
Assumed | 0 | 0 | 0 | |||
Ceded | (1) | (1) | (1) | |||
Net | $ 3,015 | $ 2,791 | $ 2,935 | |||
Letters of credit | ||||||
Ceded Statutory Reserves | $ 14,000 | $ 5,000 |
REINSURANCE (Details - Reinsura
REINSURANCE (Details - Reinsurance Security) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Reinsurance Security | ||
Reinsurance assets | $ 36,038 | $ 36,492 |
Reinsurer Concentration Risk [Member] | ||
Reinsurance Security | ||
Gross reinsurance assets due from reinsurers, percent | 5.00% | |
Secured | Reinsurer Concentration Risk [Member] | ||
Reinsurance Security | ||
Reinsurance assets | $ 19,000 | 18,900 |
Unsecured | Reinsurer Concentration Risk [Member] | ||
Reinsurance Security | ||
Reinsurance assets | $ 2,800 | $ 3,700 |
DEFERRED POLICY ACQUISITION C_3
DEFERRED POLICY ACQUISITION COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Rollforward of deferred policy acquisition costs | |||
Balance, beginning of year | $ 12,694 | $ 10,994 | $ 11,042 |
Acquisitions | 0 | 298 | 0 |
Dispositions | 0 | 0 | (35) |
Acquisition costs deferred | 5,403 | 5,832 | 4,820 |
Amortization expense | (5,164) | (5,386) | (4,288) |
Change in unrealized appreciation (depreciation) of investments | (1,768) | 1,063 | (505) |
Other, including foreign exchange | 42 | (107) | (40) |
Reclassified to Assets held for sale | 0 | 0 | 0 |
Balance, end of year | 11,207 | 12,694 | 10,994 |
Value of business acquired | |||
Amortization of VOBA | 171 | 243 | 20 |
Unamortized balance of VOBA | $ 317 | 438 | 381 |
Percentage of unamortized balance of VOBA expected to be amortized in the next five years | |||
Year one (as a percent) | 8.50% | ||
Year two (as a percent) | 7.60% | ||
Year three (as a percent) | 7.00% | ||
Year four (as a percent) | 7.00% | ||
Year five (as a percent) | 6.60% | ||
Years after five year (as a percentage) | 63.30% | ||
Investment-Oriented Contracts [Member] | |||
Rollforward of deferred policy acquisition costs | |||
Balance, beginning of year | $ 7,500 | ||
Balance, end of year | 6,100 | 7,500 | |
Validus Holdings, Ltd | |||
Value of business acquired | |||
Unamortized balance of VOBA | 101 | ||
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 | $ (1,800) | $ (1,000) | $ (1,300) |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Bonds available for sale | $ 251,086 | $ 229,391 |
Other bond securities | 6,682 | 11,415 |
Mortgage and other loans receivable | 46,984 | 43,135 |
Other invested assets | 18,792 | 19,341 |
Total assets | 525,064 | 491,984 |
Liabilities: | ||
Long-term debt | 35,350 | 34,540 |
Total liabilities | 457,637 | 434,675 |
Held for sale [Member] | ||
Assets: | ||
Bonds available for sale | 2,187 | |
Other bond securities | 13 | |
Other invested assets | 45 | |
Real Estate and Investment Entities | ||
Liabilities: | ||
Off-balance sheet exposure | 2,600 | 1,400 |
Consolidated VIE | ||
Assets: | ||
Bonds available for sale | 7,416 | 7,662 |
Other bond securities | 3,325 | 3,925 |
Mortgage and other loans receivable | 3,860 | 3,693 |
Other invested assets | 8,737 | 8,378 |
Other assets | 3,122 | 2,625 |
Total assets | 26,460 | 26,283 |
Liabilities: | ||
Long-term debt | 9,244 | 7,569 |
Other liabilities | 814 | 575 |
Total liabilities | 10,058 | 8,144 |
Consolidated VIE | Real Estate and Investment Entities | ||
Assets: | ||
Bonds available for sale | 177 | 0 |
Other bond securities | 0 | 0 |
Mortgage and other loans receivable | 0 | 0 |
Other invested assets | 5,231 | 5,212 |
Other assets | 615 | 580 |
Total assets | 6,023 | 5,792 |
Liabilities: | ||
Long-term debt | 2,810 | 2,577 |
Other liabilities | 236 | 227 |
Total liabilities | 3,046 | 2,804 |
Consolidated VIE | Securitization Vehicles | ||
Assets: | ||
Bonds available for sale | 7,239 | 7,662 |
Other bond securities | 3,324 | 3,923 |
Mortgage and other loans receivable | 3,860 | 3,693 |
Other invested assets | 0 | 0 |
Other assets | 1,996 | 1,581 |
Total assets | 16,419 | 16,859 |
Liabilities: | ||
Long-term debt | 4,356 | 3,154 |
Other liabilities | 359 | 165 |
Total liabilities | 4,715 | 3,319 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total assets of consolidated securitization vehicles owed to Parent or its subsidiaries | 15,600 | 16,000 |
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 | 3,464 | 3,142 |
Other assets | 469 | 394 |
Total assets | 3,933 | 3,536 |
Liabilities: | ||
Long-term debt | 2,074 | 1,834 |
Other liabilities | 195 | 159 |
Total liabilities | 2,269 | 1,993 |
Consolidated VIE | Other | ||
Assets: | ||
Bonds available for sale | 0 | 0 |
Other bond securities | 1 | 2 |
Mortgage and other loans receivable | 0 | 0 |
Other invested assets | 42 | 24 |
Other assets | 42 | 70 |
Total assets | 85 | 96 |
Liabilities: | ||
Long-term debt | 4 | 4 |
Other liabilities | 24 | 24 |
Total liabilities | 28 | 28 |
Unconsolidated VIE | ||
Assets: | ||
Other invested assets | 7,000 | 7,400 |
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 292,020 | 316,527 |
Maximum Exposure to Loss, On-Balance Sheet | 7,282 | 7,711 |
Maximum Exposure to Loss, Off-Balance Sheet | 3,286 | 3,723 |
Total maximum exposure to loss | 10,568 | 11,434 |
Unconsolidated VIE | Real Estate and Investment Entities | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 283,349 | 309,598 |
Maximum Exposure to Loss, On-Balance Sheet | 6,519 | 6,820 |
Maximum Exposure to Loss, Off-Balance Sheet | 3,286 | 2,501 |
Total maximum exposure to loss | 9,805 | 9,321 |
Unconsolidated VIE | Affordable Housing Partnerships | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 3,351 | 4,116 |
Maximum Exposure to Loss, On-Balance Sheet | 453 | 607 |
Maximum Exposure to Loss, Off-Balance Sheet | 0 | 0 |
Total maximum exposure to loss | 453 | 607 |
Unconsolidated VIE | Other | ||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||
Total VIE Assets | 5,320 | 2,813 |
Maximum Exposure to Loss, On-Balance Sheet | 310 | 284 |
Maximum Exposure to Loss, Off-Balance Sheet | 0 | 1,222 |
Total maximum exposure to loss | $ 310 | $ 1,506 |
DERIVATIVES AND HEDGE ACCOUNT_3
DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of our derivative instruments) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | $ 132,965,000,000 | $ 117,207,000,000 |
Gross Derivative Assets, Fair Value | 5,026,000,000 | 4,468,000,000 |
Gross Derivative Liabilities, Notional Amount | 61,482,000,000 | 40,028,000,000 |
Gross Derivative Liabilities, Fair Value | 4,009,000,000 | 3,138,000,000 |
Derivative assets, Counterparty netting | (2,427,000,000) | (1,713,000,000) |
Derivative assets, Cash collateral | (1,806,000,000) | (1,840,000,000) |
Total derivative assets on consolidated balance sheet | 793,000,000 | 915,000,000 |
Derivative liabilities, Counterparty netting | (2,427,000,000) | (1,713,000,000) |
Derivative liabilities, Cash collateral | (527,000,000) | (187,000,000) |
Total derivative liabilities on consolidated balance sheet | 1,055,000,000 | 1,238,000,000 |
Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Fair Value | 6,900,000,000 | 4,100,000,000 |
Bifurcated embedded derivatives assets, fair value | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 495,000,000 | 10,000,000 |
Gross Derivative Assets, Fair Value | 3,000,000 | 0 |
Gross Derivative Liabilities, Notional Amount | 410,000,000 | 866,000,000 |
Gross Derivative Liabilities, Fair Value | 7,000,000 | 19,000,000 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 4,328,000,000 | 6,357,000,000 |
Gross Derivative Assets, Fair Value | 342,000,000 | 363,000,000 |
Gross Derivative Liabilities, Notional Amount | 5,230,000,000 | 2,536,000,000 |
Gross Derivative Liabilities, Fair Value | 162,000,000 | 147,000,000 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 52,437,000,000 | 42,821,000,000 |
Gross Derivative Assets, Fair Value | 3,197,000,000 | 2,890,000,000 |
Gross Derivative Liabilities, Notional Amount | 35,231,000,000 | 27,329,000,000 |
Gross Derivative Liabilities, Fair Value | 2,742,000,000 | 2,004,000,000 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 8,133,000,000 | 11,134,000,000 |
Gross Derivative Assets, Fair Value | 698,000,000 | 801,000,000 |
Gross Derivative Liabilities, Notional Amount | 12,093,000,000 | 5,434,000,000 |
Gross Derivative Liabilities, Fair Value | 863,000,000 | 711,000,000 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 18,533,000,000 | 17,807,000,000 |
Gross Derivative Assets, Fair Value | 769,000,000 | 398,000,000 |
Gross Derivative Liabilities, Notional Amount | 7,539,000,000 | 2,399,000,000 |
Gross Derivative Liabilities, Fair Value | 139,000,000 | 15,000,000 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 8,457,000,000 | 8,000,000 |
Gross Derivative Assets, Fair Value | 3,000,000 | 1,000,000 |
Gross Derivative Liabilities, Notional Amount | 923,000,000 | 1,406,000,000 |
Gross Derivative Liabilities, Fair Value | 89,000,000 | 236,000,000 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 40,582,000,000 | 39,070,000,000 |
Gross Derivative Assets, Fair Value | 14,000,000 | 15,000,000 |
Gross Derivative Liabilities, Notional Amount | 56,000,000 | 58,000,000 |
Gross Derivative Liabilities, Fair Value | 7,000,000 | 6,000,000 |
Derivatives not designated as hedging instruments | Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Notional Amount | 152,000,000 | 592,000,000 |
Gross Derivative Liabilities, Fair Value | $ 48,000,000 | $ 224,000,000 |
DERIVATIVES AND HEDGE ACCOUNT_4
DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
Collateral | ||
Collateral posted to third parties for derivative transactions | $ 2.2 | $ 1.7 |
Collateral obtained from third parties for derivative transactions | $ 2.2 | $ 2.1 |
DERIVATIVES AND HEDGE ACCOUNT_5
DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships | $ 116 | $ 34 | $ (106) |
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 | 0 | (2) | (4) |
Gain (loss) recognized in earnings on hedged items | 0 | 2 | 4 |
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing | 0 | 0 | 0 |
Net Impact | 0 | 0 | 0 |
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 | 16 | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | (16) | 0 | 0 |
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing | 0 | 0 | 0 |
Net Impact | 0 | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Net investment income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (1) | 0 | 0 |
Gain (loss) recognized in earnings on hedged items | 1 | 0 | 0 |
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing | 0 | 0 | 0 |
Net Impact | 0 | 0 | 0 |
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 | (31) | 365 | (393) |
Gain (loss) recognized in earnings on hedged items | 31 | (365) | 393 |
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing | 91 | 106 | (26) |
Net Impact | 91 | 106 | (26) |
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 | 0 | 0 | 4 |
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing | 0 | 0 | 0 |
Net Impact | 0 | 0 | 4 |
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 | 0 | 0 | (42) |
Gain (loss) recognized in earnings on hedged items | 0 | 0 | 42 |
Gain (loss) recognized in earnings for amounts excluded from effectiveness testing | 0 | 0 | (5) |
Net Impact | 0 | 0 | (5) |
Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (361) | 704 | (1,501) |
Derivatives not designated as hedging instruments | Net realized capital gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (316) | 561 | (1,709) |
Derivatives not designated as hedging instruments | Net investment income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (125) | (3) | (11) |
Derivatives not designated as hedging instruments | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 0 | 81 | 139 |
Derivatives not designated as hedging instruments | Policy fees | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 68 | 67 | 77 |
Derivatives not designated as hedging instruments | Policyholder benefits and claims incurred | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 12 | (2) | 3 |
Derivatives not designated as hedging instruments | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 1,319 | (509) | 56 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (25) | 543 | (277) |
Derivatives not designated as hedging instruments | Equity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | (316) | (56) | (964) |
Derivatives not designated as hedging instruments | Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 61 | 32 | 58 |
Derivatives not designated as hedging instruments | Other contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | 64 | 65 | 75 |
Derivatives not designated as hedging instruments | Embedded derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in earnings on derivatives | $ (1,464) | $ 629 | $ (449) |
DERIVATIVES AND HEDGE ACCOUNT_6
DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Credit Derivatives [Line Items] | ||
Collateral posted | $ 2,200,000,000 | $ 1,700,000,000 |
Obligation to make payments on embedded credit derivatives | 0 | |
Fair value of hybrid securities | 3,300,000,000 | 3,900,000,000 |
Par value of hybrid securities | 7,400,000,000 | 8,500,000,000 |
Credit Risk Related Contingent Features [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral posted | 381,000,000 | 453,000,000 |
Aggregate fair value of net liability position | 336,000,000 | $ 423,000,000 |
Credit Risk Related Contingent Features [Member] | Standard & Poor's, BBB Rating | Moody's, Baa2 Rating | ||
Credit Derivatives [Line Items] | ||
Additional Collateral Aggregate Fair Value | $ 62,000,000 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details - Goodwill) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |||
Number of steps involved in process of impairment test | 2 | ||
Goodwill | |||
Goodwill - gross | $ 7,559 | $ 5,071 | $ 5,005 |
Accumulated impairments | (3,477) | (3,477) | (3,477) |
Net goodwill | 4,082 | 1,594 | 1,528 |
Increase (decrease) due to: | |||
Acquisition | 20 | 2,544 | 4 |
Dispositions | (25) | ||
Other | (64) | (56) | 87 |
Goodwill - gross | 7,515 | 7,559 | 5,071 |
Accumulated impairments | (3,477) | (3,477) | (3,477) |
Net goodwill | 4,038 | 4,082 | 1,594 |
Held for sale [Member] | |||
Increase (decrease) due to: | |||
Net goodwill | 98 | ||
Validus Holdings, Ltd | |||
Increase (decrease) due to: | |||
Acquisition | 2,000 | ||
Glatfelter | |||
Increase (decrease) due to: | |||
Acquisition | 492 | ||
Ellipse | |||
Increase (decrease) due to: | |||
Acquisition | 46 | ||
North America | |||
Goodwill | |||
Goodwill - gross | 4,188 | 1,868 | 1,878 |
Accumulated impairments | (1,264) | (1,264) | (1,264) |
Net goodwill | 2,924 | 604 | 614 |
Increase (decrease) due to: | |||
Acquisition | 0 | 2,332 | 0 |
Dispositions | (10) | ||
Other | 0 | (12) | 0 |
Goodwill - gross | 4,188 | 4,188 | 1,868 |
Accumulated impairments | (1,264) | (1,264) | (1,264) |
Net goodwill | 2,924 | 2,924 | 604 |
International | |||
Goodwill | |||
Goodwill - gross | 2,983 | 2,874 | 2,807 |
Accumulated impairments | (2,136) | (2,136) | (2,136) |
Net goodwill | 847 | 738 | 671 |
Increase (decrease) due to: | |||
Acquisition | 20 | 157 | 0 |
Dispositions | (7) | ||
Other | 26 | (48) | 74 |
Goodwill - gross | 3,029 | 2,983 | 2,874 |
Accumulated impairments | (2,136) | (2,136) | (2,136) |
Net goodwill | 893 | 847 | 738 |
Life Insurance | |||
Goodwill | |||
Goodwill - gross | 125 | 84 | 77 |
Accumulated impairments | 0 | 0 | 0 |
Net goodwill | 125 | 84 | 77 |
Increase (decrease) due to: | |||
Acquisition | 0 | 46 | 0 |
Dispositions | (6) | ||
Other | 8 | (5) | 13 |
Goodwill - gross | 133 | 125 | 84 |
Accumulated impairments | 0 | 0 | 0 |
Net goodwill | 133 | 125 | 84 |
Other Operations | |||
Goodwill | |||
Goodwill - gross | 49 | 31 | 27 |
Accumulated impairments | 0 | 0 | 0 |
Net goodwill | 49 | 31 | 27 |
Increase (decrease) due to: | |||
Acquisition | 0 | 9 | 4 |
Dispositions | 0 | ||
Other | 0 | 9 | 0 |
Goodwill - gross | 49 | 49 | 31 |
Accumulated impairments | 0 | 0 | 0 |
Net goodwill | 49 | 49 | 31 |
Legacy Portfolio | |||
Goodwill | |||
Goodwill - gross | 214 | 214 | 216 |
Accumulated impairments | (77) | (77) | (77) |
Net goodwill | 137 | 137 | 139 |
Increase (decrease) due to: | |||
Acquisition | 0 | 0 | 0 |
Dispositions | (2) | ||
Other | (98) | 0 | 0 |
Goodwill - gross | 116 | 214 | 214 |
Accumulated impairments | (77) | (77) | (77) |
Net goodwill | $ 39 | $ 137 | $ 137 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Details - Intangible assets) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets [Line Items] | ||
Other intangibles assets, beginning of year | $ 360 | $ 106 |
Acquisitions | 0 | 284 |
Amortization | (8) | (11) |
Other | (19) | (19) |
Other intangibles assets, end of year | $ 333 | 360 |
Intangible Assets, Amortized Percentage, Year One | 7.90% | |
Intangible Assets, Amortized Percentage, Year Two | 7.90% | |
Intangible Assets, Amortized Percentage, Year Three | 7.90% | |
Intangible Assets, Amortized Percentage, Year Four | 7.90% | |
Intangible Assets, Amortized Percentage, Year Five | 7.90% | |
Intangible Assets, Amortized Percentage, After Year Five | 60.50% | |
Value of Distribution Network Acquired | ||
Intangible Assets [Line Items] | ||
Value of distribution network acquried, beginning of year | $ 569 | 0 |
Acquisitions | 0 | 582 |
Amortization | (39) | (15) |
Other | 6 | 2 |
Value of distribution network acquried, end of year | 536 | 569 |
General Insurance | North America | ||
Intangible Assets [Line Items] | ||
Other intangibles assets, beginning of year | 86 | 27 |
Acquisitions | 0 | 61 |
Amortization | (1) | (2) |
Other | (3) | 0 |
Other intangibles assets, end of year | 82 | 86 |
General Insurance | North America | Value of Distribution Network Acquired | ||
Intangible Assets [Line Items] | ||
Value of distribution network acquried, beginning of year | 0 | 0 |
Acquisitions | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Value of distribution network acquried, end of year | 0 | 0 |
General Insurance | International | ||
Intangible Assets [Line Items] | ||
Other intangibles assets, beginning of year | 212 | 8 |
Acquisitions | 0 | 207 |
Amortization | (1) | (3) |
Other | 0 | 0 |
Other intangibles assets, end of year | 211 | 212 |
General Insurance | International | Value of Distribution Network Acquired | ||
Intangible Assets [Line Items] | ||
Value of distribution network acquried, beginning of year | 0 | 0 |
Acquisitions | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Value of distribution network acquried, end of year | 0 | 0 |
Life Insurance | ||
Intangible Assets [Line Items] | ||
Other intangibles assets, beginning of year | 46 | 34 |
Acquisitions | 0 | 16 |
Amortization | (4) | (4) |
Other | (18) | 0 |
Other intangibles assets, end of year | 24 | 46 |
Life Insurance | Value of Distribution Network Acquired | ||
Intangible Assets [Line Items] | ||
Value of distribution network acquried, beginning of year | 0 | 0 |
Acquisitions | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Value of distribution network acquried, end of year | 0 | 0 |
Other Operations | ||
Intangible Assets [Line Items] | ||
Other intangibles assets, beginning of year | 16 | 37 |
Acquisitions | 0 | 0 |
Amortization | (2) | (2) |
Other | 2 | (19) |
Other intangibles assets, end of year | 16 | 16 |
Other Operations | Value of Distribution Network Acquired | ||
Intangible Assets [Line Items] | ||
Value of distribution network acquried, beginning of year | 569 | 0 |
Acquisitions | 0 | 582 |
Amortization | (39) | (15) |
Other | 6 | 2 |
Value of distribution network acquried, end of year | 536 | 569 |
Legacy Portfolio | ||
Intangible Assets [Line Items] | ||
Other intangibles assets, beginning of year | 0 | 0 |
Acquisitions | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Other intangibles assets, end of year | 0 | 0 |
Legacy Portfolio | Value of Distribution Network Acquired | ||
Intangible Assets [Line Items] | ||
Value of distribution network acquried, beginning of year | 0 | 0 |
Acquisitions | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Value of distribution network acquried, end of year | $ 0 | $ 0 |
INSURANCE LIABILITIES (Details
INSURANCE LIABILITIES (Details - Liability for Unpaid Losses and Loss Adjustment Expenses) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplementary Insurance Information, by Segment [Line Items] | |||||||||||
Gross loss reserves before reinsurance and discount, net of contractual deductible recoverable amounts due from policyholders | $ 12,200 | $ 12,300 | $ 12,200 | $ 12,300 | |||||||
Collateral Held For Deductible Recoverable Amounts | 8,900 | 9,200 | 8,900 | 9,200 | |||||||
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense: | |||||||||||
Liability for unpaid loss and loss adjustment expenses, beginning of year | $ 83,639 | $ 78,393 | 83,639 | 78,393 | $ 77,077 | ||||||
Reinsurance recoverable, balance at the beginning of the year | (31,690) | (26,708) | (31,690) | (26,708) | (15,532) | ||||||
Net Liability for unpaid loss and loss adjustment expenses, beginning of year | 51,949 | 51,685 | 51,949 | 51,685 | 61,545 | ||||||
Losses and loss adjustment expenses incurred | |||||||||||
Current year | 17,596 | 20,534 | 21,079 | ||||||||
Prior years, other than accretion of discount | (119) | $ (74) | $ (132) | $ (15) | 546 | $ 949 | $ (26) | $ (40) | |||
Prior years, excluding discount and amortization of deferred gain | (340) | 1,429 | 1,565 | ||||||||
Prior years, discount charge (benefit) | 1,063 | (252) | 187 | ||||||||
Prior years, amortization of deferred gain on retroactive reinsurance | (219) | (395) | (284) | ||||||||
Total losses and loss adjustment expenses incurred | 18,100 | 21,316 | 22,547 | ||||||||
Losses and loss adjustment expenses paid | |||||||||||
Current year | (4,894) | (5,754) | (5,323) | ||||||||
Prior years | (18,020) | (17,768) | (16,241) | ||||||||
Total losses and loss adjustment expenses paid | (22,914) | (23,522) | (21,564) | ||||||||
Other changes | |||||||||||
Foreign exchange effect | (6) | (677) | 788 | ||||||||
Acquisitions | 0 | 3,284 | 23 | ||||||||
Dispositions | 0 | 0 | (360) | ||||||||
Retroactive reinsurance adjustment (net of discount) | 130 | (137) | (11,294) | ||||||||
Total other changes | 124 | 2,470 | (10,843) | ||||||||
Net liability for unpaid losses and loss adjustment expenses, balance at end of year | 47,259 | 51,949 | 47,259 | 51,949 | 51,685 | ||||||
Reinsurance recoverable, balance at the end of the year | 31,069 | 31,690 | 31,069 | 31,690 | 26,708 | ||||||
Total, balance at the end of the year | $ 78,328 | $ 83,639 | 78,328 | 83,639 | 78,393 | ||||||
Change in discount on loss reserves ceded under retroactive reinsurance | 469 | (180) | (1,539) | ||||||||
U.S. Asbestos | NICO | |||||||||||
Losses and loss adjustment expenses incurred | |||||||||||
Prior years, discount charge (benefit) | 27 | 51 | 25 | ||||||||
U.S. Commercial long-tail exposures | |||||||||||
Losses and loss adjustment expenses incurred | |||||||||||
Prior years, other than accretion of discount | (4) | $ (4) | $ (30) | ||||||||
Prior years, excluding discount and amortization of deferred gain | $ 22 |
INSURANCE LIABILITIES (Detail_2
INSURANCE LIABILITIES (Details - Reconciliation of the Net Incurred and Paid Claims Development) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | $ 47,259 | $ 51,949 | $ 51,685 | $ 61,545 |
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 31,069 | 31,690 | 26,708 | 15,532 |
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 78,328 | $ 83,639 | $ 78,393 | $ 77,077 |
Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 40,157 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 29,094 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 69,251 | |||
U.S. Workers Compensation | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 5,213 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 6,745 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 11,958 | |||
U.S. Excess Casualty | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 4,285 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 5,073 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 9,358 | |||
U.S. Other Casualty | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 4,064 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 4,695 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 8,759 | |||
U.S. Financial Lines | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 5,154 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 2,221 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 7,375 | |||
U.S. Property and Specialty Risks | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 4,950 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 2,807 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 7,757 | |||
U.S. Personal Insurance | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 1,287 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 988 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 2,275 | |||
UK/Europe Casualty and Financial Lines | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 6,234 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 1,268 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 7,502 | |||
UK/Europe Property and Special Risks | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 2,573 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 1,191 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 3,764 | |||
UK/Europe and Japan Personal Insurance | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 1,962 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 519 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 2,481 | |||
U.S. Run-Off Long Tail Insurance Lines | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 4,435 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below (Last 10 Years) | 3,587 | |||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 8,022 | |||
Reconciling Items | Discount On Workers Compensation Lines | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | (2,800) | |||
Reconciling Items | Other Product Lines | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | 8,679 | |||
Reconciling Items | Unallocated Loss Adjustment Expenses | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Gross liability for unpaid losses and loss adjustment expenses (Last 10 Years) | $ 3,198 |
INSURANCE LIABILITIES (Detail_3
INSURANCE LIABILITIES (Details - Undiscounted, Incurred and Paid Losses and Allocated Loss Adjustment Expenses) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2019USD ($)item | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | |
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | $ (62) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (340) | $ 1,429 | $ 1,565 | |||||||||||||||
Reserve strengthening charges | $ (119) | $ (74) | $ (132) | $ (15) | $ 546 | $ 949 | $ (26) | $ (40) | ||||||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 47,259 | 51,949 | 47,259 | 51,949 | 51,685 | $ 61,545 | ||||||||||||
U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 17,797 | 17,797 | ||||||||||||||||
Change in Incurred Loss and ALAE | (192) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (552) | |||||||||||||||||
Reserve strengthening charges | (699) | 51 | (31) | |||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (2,764) | (2,764) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 15,033 | 15,033 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 11,354 | 11,354 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 4,505 | 4,505 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 10,948 | 10,948 | ||||||||||||||||
U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 507 | |||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (2,971) | (3,127) | (2,971) | (3,127) | ||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 213 | 213 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (5,735) | (6,029) | (5,735) | (6,029) | ||||||||||||||
U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 26 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 42 | |||||||||||||||||
Reserve strengthening charges | 76 | 1,300 | 254 | |||||||||||||||
Total | 12,620 | 12,620 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 6,799 | 6,799 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 2,243 | 2,243 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 8,064 | 8,064 | ||||||||||||||||
U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (50) | |||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (1,705) | (1,577) | (1,705) | (1,577) | 0 | |||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 114 | 114 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (3,779) | (3,615) | (3,779) | (3,615) | ||||||||||||||
U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 17,302 | 17,302 | ||||||||||||||||
Change in Incurred Loss and ALAE | 188 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 317 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1,224) | (1,224) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 16,078 | 16,078 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 12,454 | 12,454 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 1,392 | 1,392 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 6,240 | 6,240 | ||||||||||||||||
U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 21 | |||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (952) | (878) | (952) | (878) | ||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 69 | 69 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (2,176) | (2,128) | (2,176) | (2,128) | ||||||||||||||
U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 18,042 | 18,042 | ||||||||||||||||
Change in Incurred Loss and ALAE | 326 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 414 | |||||||||||||||||
Reserve strengthening charges | 463 | 298 | 345 | |||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (842) | (842) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 17,200 | 17,200 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 12,065 | 12,065 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 154 | 154 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 6,131 | 6,131 | ||||||||||||||||
U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (136) | |||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 12,065 | 12,065 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (135) | (45) | (135) | (45) | ||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 21 | 21 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (977) | (820) | (977) | (820) | ||||||||||||||
U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 32,984 | 32,984 | ||||||||||||||||
Change in Incurred Loss and ALAE | (288) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (189) | |||||||||||||||||
Reserve strengthening charges | (204) | (497) | 115 | |||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (281) | (281) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 32,703 | 32,703 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 27,948 | 27,948 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 309 | 309 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 5,345 | 5,345 | ||||||||||||||||
U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (74) | |||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (114) | (84) | (114) | (84) | 0 | |||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 7 | 7 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (395) | (314) | (395) | (314) | ||||||||||||||
U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 18,122 | 18,122 | ||||||||||||||||
Change in Incurred Loss and ALAE | (85) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (110) | |||||||||||||||||
Reserve strengthening charges | (96) | 255 | 16 | |||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (14) | (14) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 18,108 | 18,108 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 16,744 | 16,744 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (71) | (71) | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 1,307 | 1,307 | ||||||||||||||||
U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 14 | |||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (6) | (3) | (6) | (3) | 0 | |||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 2 | 2 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (20) | (32) | (20) | (32) | ||||||||||||||
UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 12,973 | 12,973 | ||||||||||||||||
Change in Incurred Loss and ALAE | 161 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 145 | |||||||||||||||||
Reserve strengthening charges | 161 | 58 | 507 | |||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 7,417 | 7,417 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 678 | 678 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 6,234 | 6,234 | ||||||||||||||||
UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 13,886 | 13,886 | ||||||||||||||||
Change in Incurred Loss and ALAE | (108) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (73) | |||||||||||||||||
Reserve strengthening charges | (108) | (22) | 157 | |||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 11,335 | 11,335 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 22 | 22 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 2,573 | 2,573 | ||||||||||||||||
UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 28,594 | 28,594 | ||||||||||||||||
Change in Incurred Loss and ALAE | (119) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (119) | |||||||||||||||||
Reserve strengthening charges | (119) | (116) | (58) | |||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 26,676 | 26,676 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 44 | 44 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 1,962 | 1,962 | ||||||||||||||||
U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 4,024 | 4,024 | ||||||||||||||||
Change in Incurred Loss and ALAE | (4) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 22 | |||||||||||||||||
Reserve strengthening charges | (4) | (4) | (30) | |||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,951 | 2,951 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 3,362 | 3,362 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 4,435 | 4,435 | ||||||||||||||||
All Other | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 33 | |||||||||||||||||
Prior to 2009 | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | (266) | 1,163 | 435 | |||||||||||||||
Prior to 2009 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (54) | |||||||||||||||||
Reserve strengthening charges | (210) | 153 | (7) | |||||||||||||||
Prior to 2009 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 156 | |||||||||||||||||
Prior to 2009 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (74) | |||||||||||||||||
Reserve strengthening charges | 54 | 537 | 164 | |||||||||||||||
Prior to 2009 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (128) | |||||||||||||||||
Prior to 2009 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (245) | |||||||||||||||||
Reserve strengthening charges | (170) | 129 | (8) | |||||||||||||||
Prior to 2009 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (74) | |||||||||||||||||
Prior to 2009 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (80) | |||||||||||||||||
Reserve strengthening charges | 11 | (1) | (34) | |||||||||||||||
Prior to 2009 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (90) | |||||||||||||||||
Prior to 2009 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (43) | |||||||||||||||||
Reserve strengthening charges | (3) | 39 | 11 | |||||||||||||||
Prior to 2009 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (30) | |||||||||||||||||
Prior to 2009 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (5) | |||||||||||||||||
Reserve strengthening charges | 1 | 2 | 9 | |||||||||||||||
Prior to 2009 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (3) | |||||||||||||||||
Prior to 2009 | UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 9 | 1 | 169 | |||||||||||||||
Prior to 2009 | UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | (28) | 3 | (6) | |||||||||||||||
Prior to 2009 | UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 0 | 9 | 3 | |||||||||||||||
Prior to 2009 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | (46) | 154 | (44) | |||||||||||||||
Prior to 2009 | All Other | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Reserve strengthening charges | 116 | 137 | 178 | |||||||||||||||
Total | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (414) | |||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 15,033 | 14,560 | 15,033 | 14,560 | 13,527 | 12,706 | ||||||||||||
Total | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 138 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (2,764) | (2,902) | (2,764) | (2,902) | (3,099) | (3,155) | ||||||||||||
Total | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 6 | |||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 10,546 | 9,963 | 10,546 | 9,963 | 8,836 | 7,758 | ||||||||||||
Total | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (36) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (2,074) | (2,038) | (2,074) | (2,038) | (1,928) | (2,057) | ||||||||||||
Total | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 343 | |||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 16,078 | 14,676 | 16,078 | 14,676 | 13,907 | 13,263 | ||||||||||||
Total | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 26 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1,224) | (1,250) | (1,224) | (1,250) | (1,542) | (1,422) | ||||||||||||
Total | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 347 | |||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 17,200 | 15,350 | 17,200 | 15,350 | 13,391 | 11,580 | ||||||||||||
Total | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (67) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (842) | (775) | (842) | (775) | (801) | (780) | ||||||||||||
Total | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (240) | |||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 32,703 | 30,119 | 32,703 | 30,119 | 26,944 | 21,564 | ||||||||||||
Total | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (51) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (281) | (230) | (281) | (230) | (259) | (291) | ||||||||||||
Total | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (95) | |||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 18,108 | 16,610 | 18,108 | 16,610 | 14,161 | 12,135 | ||||||||||||
Total | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 15 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (14) | (29) | (14) | (29) | (38) | (33) | ||||||||||||
2010 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,238 | 3,278 | 3,238 | 3,278 | 3,267 | 3,286 | $ 3,214 | $ 3,211 | $ 3,148 | $ 3,125 | $ 3,049 | $ 2,706 | ||||||
Change in Incurred Loss and ALAE | (10) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (40) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 334 | $ 334 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 133,623 | 133,623 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (437) | $ (437) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (276) | (276) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,801 | 2,811 | 2,801 | 2,811 | 2,818 | 2,822 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 58 | 58 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,647 | 2,597 | 2,647 | 2,597 | 2,532 | 2,426 | 2,288 | 2,126 | 1,855 | 1,537 | 1,093 | 550 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2010 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 30 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (437) | (467) | (437) | (467) | (449) | (464) | ||||||||||||
2010 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,638 | 1,681 | 1,638 | 1,681 | 1,708 | 1,723 | 1,739 | 1,650 | 1,784 | 2,093 | 2,097 | 1,888 | ||||||
Change in Incurred Loss and ALAE | (40) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (43) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 308 | $ 308 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 3,727 | 3,727 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (252) | $ (252) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (201) | (201) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,386 | 1,426 | 1,386 | 1,426 | 1,448 | 1,452 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 107 | 107 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,288 | 1,265 | 1,288 | 1,265 | 1,217 | 1,052 | 946 | 795 | 654 | 475 | 197 | 10 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2010 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 3 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (252) | (255) | (252) | (255) | (260) | (271) | ||||||||||||
2010 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,505 | 2,504 | 2,505 | 2,504 | 2,492 | 2,501 | 2,381 | 2,335 | 2,185 | 2,235 | 2,102 | 2,124 | ||||||
Change in Incurred Loss and ALAE | 26 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 1 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 225 | $ 225 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 96,534 | 96,534 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (130) | $ (130) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (103) | (103) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,375 | 2,349 | 2,375 | 2,349 | 2,359 | 2,361 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 122 | 122 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,236 | 2,196 | 2,236 | 2,196 | 2,087 | 1,972 | 1,824 | 1,640 | 1,358 | 985 | 661 | 295 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2010 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 25 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (130) | (155) | (130) | (155) | (133) | (140) | ||||||||||||
2010 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,544 | 1,542 | 1,544 | 1,542 | 1,535 | 1,509 | 1,470 | 1,374 | 1,383 | 1,423 | 1,525 | 1,584 | ||||||
Change in Incurred Loss and ALAE | (16) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 2 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 64 | $ 64 | ||||||||||||||||
Cumulative Number of Reported Claims | 20,165 | 20,165 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (55) | $ (55) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (44) | (44) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,489 | 1,505 | 1,489 | 1,505 | 1,504 | 1,499 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 20 | 20 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2010 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (18) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (55) | (37) | (55) | (37) | (31) | (10) | ||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,420 | 1,394 | 1,420 | 1,394 | 1,354 | 1,273 | 1,172 | 1,009 | 793 | 558 | 278 | 31 | ||||||
2010 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,556 | 2,550 | 2,556 | 2,550 | 2,552 | 2,541 | 2,531 | 2,551 | 2,535 | 2,461 | 2,504 | 2,751 | ||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 6 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 42 | $ 42 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 47,225 | 47,225 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (24) | $ (24) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (19) | (19) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,532 | 2,532 | 2,532 | 2,532 | 2,534 | 2,532 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 23 | 23 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,488 | 2,475 | 2,488 | 2,475 | 2,450 | 2,414 | 2,344 | 2,219 | 2,090 | 1,890 | 1,558 | 750 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2010 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (6) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (24) | (18) | (24) | (18) | (18) | (9) | ||||||||||||
2010 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,815 | 1,815 | 1,815 | 1,815 | 1,817 | 1,817 | 1,819 | 1,820 | 1,819 | 1,819 | 1,809 | 1,843 | ||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1 | $ 1 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 422,774 | 422,774 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (1) | $ (1) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (1) | (1) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,814 | 1,814 | 1,814 | 1,814 | 1,816 | 1,816 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,813 | 1,812 | 1,813 | 1,812 | 1,810 | 1,808 | 1,803 | 1,794 | 1,772 | 1,736 | 1,669 | 1,205 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2010 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1) | (1) | (1) | (1) | (1) | (1) | ||||||||||||
2010 | UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,336 | 1,339 | 1,336 | 1,339 | 1,358 | 1,288 | 1,308 | 1,273 | 1,325 | 1,303 | 1,282 | 1,303 | ||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (3) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 30 | $ 30 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 278,205 | 278,205 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,162 | 1,111 | $ 1,162 | 1,111 | 1,093 | 1,039 | 975 | 882 | 750 | 584 | 377 | 130 | ||||||
2010 | UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,278 | 1,272 | 1,278 | 1,272 | 1,286 | 1,289 | 1,291 | 1,313 | 1,336 | 1,396 | 1,471 | 1,475 | ||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 6 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 9 | $ 9 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 47,625 | 47,625 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,255 | 1,266 | $ 1,255 | 1,266 | 1,260 | 1,253 | 1,244 | 1,215 | 1,177 | 1,086 | 908 | 424 | ||||||
2010 | UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,061 | 3,061 | 3,061 | 3,061 | 3,063 | 3,083 | 3,057 | 3,062 | 3,061 | 3,073 | 3,072 | 3,024 | ||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 3 | $ 3 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,820,113 | 1,820,113 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 3,047 | 3,040 | $ 3,047 | 3,040 | 3,032 | 3,021 | 3,001 | 2,967 | 2,908 | 2,796 | 2,547 | 1,737 | ||||||
2010 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 563 | 559 | 563 | 559 | 565 | 611 | 582 | 585 | 557 | 534 | 528 | 640 | ||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 4 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 55 | $ 55 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 8,556 | 8,556 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 487 | 473 | $ 487 | 473 | 464 | 455 | 435 | 404 | 321 | 243 | 149 | $ 57 | ||||||
2011 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,141 | 3,177 | 3,141 | 3,177 | 3,156 | 3,152 | 3,113 | 3,158 | 3,091 | 2,953 | 2,901 | |||||||
Change in Incurred Loss and ALAE | 1 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (36) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 414 | $ 414 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 125,122 | 125,122 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (458) | $ (458) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (311) | (311) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,683 | 2,682 | 2,683 | 2,682 | 2,677 | 2,676 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 103 | 103 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,496 | 2,451 | 2,496 | 2,451 | 2,388 | 2,285 | 2,129 | 1,884 | 1,561 | 1,129 | 519 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2011 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 37 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (458) | (495) | (458) | (495) | (479) | (476) | ||||||||||||
2011 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,758 | 1,726 | 1,758 | 1,726 | 1,627 | 1,611 | 1,529 | 1,429 | 1,597 | 1,827 | 1,787 | |||||||
Change in Incurred Loss and ALAE | (20) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 32 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 381 | $ 381 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 3,726 | 3,726 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (342) | $ (342) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (272) | (272) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,416 | 1,436 | 1,416 | 1,436 | 1,371 | 1,369 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 109 | 109 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,257 | 1,214 | 1,257 | 1,214 | 1,069 | 921 | 716 | 387 | 225 | 63 | 5 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2011 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (52) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (342) | (290) | (342) | (290) | (256) | (242) | ||||||||||||
2011 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,515 | 2,517 | 2,515 | 2,517 | 2,582 | 2,620 | 2,585 | 2,439 | 2,302 | 2,202 | 2,033 | |||||||
Change in Incurred Loss and ALAE | (38) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (2) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 126 | $ 126 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 75,391 | 75,391 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (139) | $ (139) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (110) | (110) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,376 | 2,414 | 2,376 | 2,414 | 2,395 | 2,398 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 16 | 16 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,339 | 2,289 | 2,339 | 2,289 | 2,210 | 2,039 | 1,814 | 1,481 | 1,102 | 722 | 235 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2011 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (36) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (139) | (103) | (139) | (103) | (187) | (222) | ||||||||||||
2011 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,012 | 2,015 | 2,012 | 2,015 | 2,023 | 1,991 | 1,960 | 1,925 | 1,934 | 1,765 | 1,844 | |||||||
Change in Incurred Loss and ALAE | (31) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (3) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 63 | $ 63 | ||||||||||||||||
Cumulative Number of Reported Claims | 20,063 | 20,063 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (54) | $ (54) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (43) | (43) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,958 | 1,989 | 1,958 | 1,989 | 1,973 | 1,966 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 20 | 20 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2011 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (28) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (54) | (26) | (54) | (26) | (50) | (25) | ||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,918 | 1,912 | 1,918 | 1,912 | 1,885 | 1,752 | 1,529 | 1,210 | 886 | 494 | 165 | |||||||
2011 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,644 | 3,646 | 3,644 | 3,646 | 3,653 | 3,646 | 3,607 | 3,622 | 3,630 | 3,700 | 3,833 | |||||||
Change in Incurred Loss and ALAE | (10) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (2) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 39 | $ 39 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 49,133 | 49,133 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (23) | $ (23) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (18) | (18) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 3,621 | 3,631 | 3,621 | 3,631 | 3,634 | 3,626 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 21 | 21 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 3,577 | 3,562 | 3,577 | 3,562 | 3,532 | 3,476 | 3,378 | 3,177 | 2,915 | 2,331 | 1,018 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2011 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (8) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (23) | (15) | (23) | (15) | (19) | (20) | ||||||||||||
2011 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,878 | 1,879 | 1,878 | 1,879 | 1,881 | 1,886 | 1,890 | 1,891 | 1,896 | 1,908 | 1,886 | |||||||
Change in Incurred Loss and ALAE | (1) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1 | $ 1 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 413,127 | 413,127 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (1) | $ (1) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (1) | (1) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,877 | 1,878 | 1,877 | 1,878 | 1,880 | 1,881 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,875 | 1,874 | 1,875 | 1,874 | 1,873 | 1,869 | 1,860 | 1,840 | 1,814 | 1,752 | 1,204 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2011 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1) | (1) | (1) | (1) | (1) | (5) | ||||||||||||
2011 | UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,453 | 1,456 | 1,453 | 1,456 | 1,479 | 1,432 | 1,424 | 1,336 | 1,288 | 1,212 | 1,257 | |||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (3) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 53 | $ 53 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 267,537 | 267,537 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,245 | 1,193 | $ 1,245 | 1,193 | 1,129 | 1,021 | 899 | 757 | 522 | 345 | 125 | |||||||
2011 | UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,131 | 1,134 | 1,131 | 1,134 | 1,143 | 1,146 | 1,158 | 1,188 | 1,222 | 1,336 | 1,383 | |||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (3) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 10 | $ 10 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 48,985 | 48,985 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,101 | 1,098 | $ 1,101 | 1,098 | 1,090 | 1,082 | 1,065 | 1,040 | 966 | 772 | 336 | |||||||
2011 | UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,343 | 3,344 | 3,343 | 3,344 | 3,345 | 3,353 | 3,350 | 3,361 | 3,360 | 3,394 | 3,332 | |||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 4 | $ 4 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,778,510 | 1,778,510 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 3,325 | 3,320 | $ 3,325 | 3,320 | 3,310 | 3,293 | 3,264 | 3,200 | 3,085 | 2,846 | 2,031 | |||||||
2011 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 694 | 687 | 694 | 687 | 700 | 685 | 676 | 641 | 576 | 542 | 534 | |||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 7 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 87 | $ 87 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 7,826 | 7,826 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 578 | 559 | $ 578 | 559 | 549 | 532 | 449 | 385 | 259 | 140 | $ 21 | |||||||
2012 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,247 | 2,259 | 2,247 | 2,259 | 2,308 | 2,334 | 2,260 | 2,286 | 2,194 | 2,382 | ||||||||
Change in Incurred Loss and ALAE | 11 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (12) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 380 | $ 380 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 71,128 | 71,128 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (443) | $ (443) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (307) | (307) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,804 | 1,793 | 1,804 | 1,793 | 1,814 | 1,819 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 73 | 73 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,669 | 1,632 | 1,669 | 1,632 | 1,563 | 1,440 | 1,272 | 1,089 | 804 | 415 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2012 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 23 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (443) | (466) | (443) | (466) | (494) | (515) | ||||||||||||
2012 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,502 | 1,558 | 1,502 | 1,558 | 1,486 | 1,537 | 1,488 | 1,242 | 1,403 | 1,607 | ||||||||
Change in Incurred Loss and ALAE | (40) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (56) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 312 | $ 312 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 3,688 | 3,688 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (288) | $ (288) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (229) | (229) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,214 | 1,254 | 1,214 | 1,254 | 1,163 | 1,175 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 83 | 83 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,121 | 1,022 | 1,121 | 1,022 | 887 | 649 | 495 | 288 | 106 | 3 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2012 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 16 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (288) | (304) | (288) | (304) | (323) | (362) | ||||||||||||
2012 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,328 | 2,343 | 2,328 | 2,343 | 2,407 | 2,352 | 2,203 | 2,193 | 2,139 | 1,986 | ||||||||
Change in Incurred Loss and ALAE | (16) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (15) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 190 | $ 190 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 42,048 | 42,048 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (169) | $ (169) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (135) | (135) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,159 | 2,175 | 2,159 | 2,175 | 2,197 | 2,189 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 55 | 55 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,053 | 2,009 | 2,053 | 2,009 | 1,869 | 1,677 | 1,385 | 1,042 | 739 | 411 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2012 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (1) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (169) | (168) | (169) | (168) | (210) | (163) | ||||||||||||
2012 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,077 | 2,015 | 2,077 | 2,015 | 1,990 | 1,988 | 1,907 | 1,800 | 1,763 | 1,592 | ||||||||
Change in Incurred Loss and ALAE | 37 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 62 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 115 | $ 115 | ||||||||||||||||
Cumulative Number of Reported Claims | 20,076 | 20,076 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (115) | $ (115) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (92) | (92) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,962 | 1,925 | 1,962 | 1,925 | 1,907 | 1,906 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 23 | 23 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2012 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (25) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (115) | (90) | (115) | (90) | (83) | (82) | ||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,859 | 1,687 | 1,859 | 1,687 | 1,622 | 1,494 | 1,250 | 812 | 403 | 73 | ||||||||
2012 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 4,282 | 4,300 | 4,282 | 4,300 | 4,318 | 4,327 | 4,215 | 4,256 | 4,284 | 4,166 | ||||||||
Change in Incurred Loss and ALAE | (25) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (18) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 56 | $ 56 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 48,391 | 48,391 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (26) | $ (26) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (21) | (21) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 4,256 | 4,281 | 4,256 | 4,281 | 4,293 | 4,300 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 35 | 35 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 4,178 | 4,145 | 4,178 | 4,145 | 4,113 | 3,985 | 3,768 | 3,404 | 2,709 | 840 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2012 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (7) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (26) | (19) | (26) | (19) | (25) | (27) | ||||||||||||
2012 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,099 | 2,095 | 2,099 | 2,095 | 2,094 | 2,077 | 2,083 | 2,109 | 2,128 | 2,208 | ||||||||
Change in Incurred Loss and ALAE | 5 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 4 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1 | $ 1 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 403,920 | 403,920 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (1) | $ (1) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (1) | (1) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,098 | 2,093 | 2,098 | 2,093 | 2,091 | 2,088 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,095 | 2,085 | 2,095 | 2,085 | 2,079 | 2,065 | 2,035 | 1,996 | 1,936 | 1,238 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2012 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 1 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1) | (2) | (1) | (2) | (3) | 11 | ||||||||||||
2012 | UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,199 | 1,205 | 1,199 | 1,205 | 1,148 | 1,171 | 1,111 | 1,029 | 1,065 | 1,088 | ||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (6) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 50 | $ 50 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 220,502 | 220,502 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 998 | 946 | $ 998 | 946 | 845 | 756 | 626 | 444 | 303 | 106 | ||||||||
2012 | UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,096 | 1,102 | 1,096 | 1,102 | 1,119 | 1,114 | 1,132 | 1,148 | 1,219 | 1,320 | ||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (6) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ (2) | $ (2) | ||||||||||||||||
Cumulative Number of Reported Claims | item | 44,096 | 44,096 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,068 | 1,062 | $ 1,068 | 1,062 | 1,052 | 1,026 | 980 | 912 | 721 | 277 | ||||||||
2012 | UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,876 | 2,877 | 2,876 | 2,877 | 2,881 | 2,891 | 2,882 | 2,897 | 2,916 | 2,933 | ||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 5 | $ 5 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,730,216 | 1,730,216 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,856 | 2,848 | $ 2,856 | 2,848 | 2,830 | 2,800 | 2,743 | 2,634 | 2,402 | 1,642 | ||||||||
2012 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 692 | 702 | 692 | 702 | 752 | 751 | 786 | 741 | 678 | 629 | ||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (10) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 37 | $ 37 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 4,082 | 4,082 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 534 | 525 | $ 534 | 525 | 498 | 481 | 414 | 286 | 194 | $ 86 | ||||||||
2013 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,916 | 1,974 | 1,916 | 1,974 | 2,032 | 2,060 | 1,950 | 1,880 | 1,932 | |||||||||
Change in Incurred Loss and ALAE | (23) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (58) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 353 | $ 353 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 47,066 | 47,066 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (458) | $ (458) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (311) | (311) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,458 | 1,481 | 1,458 | 1,481 | 1,494 | 1,500 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 42 | 42 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,335 | 1,287 | 1,335 | 1,287 | 1,214 | 1,067 | 879 | 619 | 282 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2013 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 35 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (458) | (493) | (458) | (493) | (538) | (560) | ||||||||||||
2013 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,292 | 1,282 | 1,292 | 1,282 | 1,241 | 1,308 | 1,169 | 1,035 | 1,123 | |||||||||
Change in Incurred Loss and ALAE | 51 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 10 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 271 | $ 271 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 3,102 | 3,102 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (260) | $ (260) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (197) | (197) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,032 | 981 | 1,032 | 981 | 932 | 935 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 74 | 74 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 819 | 705 | 819 | 705 | 578 | 387 | 207 | 105 | 15 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2013 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 41 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (260) | (301) | (260) | (301) | (309) | (373) | ||||||||||||
2013 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,211 | 2,164 | 2,211 | 2,164 | 2,185 | 2,148 | 1,912 | 1,729 | 1,653 | |||||||||
Change in Incurred Loss and ALAE | 19 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 47 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 286 | $ 286 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 37,117 | 37,117 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (263) | $ (263) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (219) | (219) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,948 | 1,929 | 1,948 | 1,929 | 1,960 | 1,948 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 67 | 67 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,809 | 1,688 | 1,809 | 1,688 | 1,485 | 1,248 | 962 | 594 | 169 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2013 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (28) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (263) | (235) | (263) | (235) | (225) | (200) | ||||||||||||
2013 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,509 | 1,497 | 1,509 | 1,497 | 1,555 | 1,613 | 1,670 | 1,719 | 1,790 | |||||||||
Change in Incurred Loss and ALAE | 1 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 12 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 122 | $ 122 | ||||||||||||||||
Cumulative Number of Reported Claims | 19,126 | 19,126 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (100) | $ (100) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (80) | (80) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,409 | 1,408 | 1,409 | 1,408 | 1,429 | 1,442 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 42 | 42 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2013 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (11) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (100) | (89) | (100) | (89) | (126) | (171) | ||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,314 | 1,235 | 1,314 | 1,235 | 1,139 | 945 | 682 | 327 | 41 | |||||||||
2013 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,439 | 2,447 | 2,439 | 2,447 | 2,445 | 2,432 | 2,387 | 2,530 | 2,528 | |||||||||
Change in Incurred Loss and ALAE | (19) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (8) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 49 | $ 49 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 49,722 | 49,722 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (38) | $ (38) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (30) | (30) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,401 | 2,420 | 2,401 | 2,420 | 2,407 | 2,405 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 19 | 19 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,325 | 2,300 | 2,325 | 2,300 | 2,188 | 2,040 | 1,847 | 1,570 | 734 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2013 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (11) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (38) | (27) | (38) | (27) | (38) | (27) | ||||||||||||
2013 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,777 | 1,776 | 1,777 | 1,776 | 1,780 | 1,782 | 1,803 | 1,816 | 1,887 | |||||||||
Change in Incurred Loss and ALAE | 2 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 1 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1 | $ 1 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 335,158 | 335,158 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (1) | $ (1) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (1) | (1) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,776 | 1,774 | 1,776 | 1,774 | 1,774 | 1,774 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,772 | 1,766 | 1,772 | 1,766 | 1,759 | 1,744 | 1,705 | 1,634 | 1,109 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2013 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 1 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1) | (2) | (1) | (2) | (6) | (8) | ||||||||||||
2013 | UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,171 | 1,114 | 1,171 | 1,114 | 1,079 | 1,044 | 1,063 | 1,082 | 1,041 | |||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 57 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 87 | $ 87 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 187,469 | 187,469 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 930 | 856 | $ 930 | 856 | 741 | 627 | 487 | 338 | 90 | |||||||||
2013 | UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,240 | 1,260 | 1,240 | 1,260 | 1,271 | 1,286 | 1,306 | 1,415 | 1,421 | |||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (20) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 3 | $ 3 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 43,932 | 43,932 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,197 | 1,189 | $ 1,197 | 1,189 | 1,168 | 1,118 | 1,042 | 815 | 331 | |||||||||
2013 | UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,733 | 2,736 | 2,733 | 2,736 | 2,740 | 2,745 | 2,745 | 2,779 | 2,780 | |||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (3) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 7 | $ 7 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,735,489 | 1,735,489 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,709 | 2,695 | $ 2,709 | 2,695 | 2,665 | 2,608 | 2,500 | 2,279 | 1,527 | |||||||||
2013 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 507 | 511 | 507 | 511 | 528 | 570 | 589 | 533 | 482 | |||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (4) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 11 | $ 11 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 2,568 | 2,568 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 414 | 390 | $ 414 | 390 | 368 | 321 | 261 | 154 | $ 87 | |||||||||
2014 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,709 | 1,794 | 1,709 | 1,794 | 1,862 | 1,866 | 1,764 | 1,729 | ||||||||||
Change in Incurred Loss and ALAE | 20 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (85) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 397 | $ 397 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 40,075 | 40,075 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (380) | $ (380) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (238) | (238) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,329 | 1,309 | 1,329 | 1,309 | 1,310 | 1,311 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 159 | 159 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,096 | 1,030 | 1,096 | 1,030 | 930 | 786 | 558 | 231 | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2014 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 105 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (380) | (485) | (380) | (485) | (552) | (555) | ||||||||||||
2014 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,283 | 1,339 | 1,283 | 1,339 | 1,260 | 1,275 | 1,069 | 938 | ||||||||||
Change in Incurred Loss and ALAE | (71) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (56) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 466 | $ 466 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 2,632 | 2,632 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (439) | $ (439) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (360) | (360) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 844 | 915 | 844 | 915 | 905 | 902 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 106 | 106 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 703 | 590 | 703 | 590 | 444 | 240 | 77 | 3 | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2014 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (15) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (439) | (424) | (439) | (424) | (355) | (373) | ||||||||||||
2014 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,916 | 1,910 | 1,916 | 1,910 | 2,009 | 1,963 | 1,721 | 1,751 | ||||||||||
Change in Incurred Loss and ALAE | 60 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 6 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 230 | $ 230 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 35,730 | 35,730 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (222) | $ (222) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (177) | (177) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,694 | 1,634 | 1,694 | 1,634 | 1,678 | 1,667 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 53 | 53 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,572 | 1,392 | 1,572 | 1,392 | 1,150 | 868 | 620 | 210 | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2014 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 54 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (222) | (276) | (222) | (276) | (331) | (296) | ||||||||||||
2014 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,981 | 1,960 | 1,981 | 1,960 | 1,927 | 1,892 | 1,777 | 1,812 | ||||||||||
Change in Incurred Loss and ALAE | (12) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 21 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 241 | $ 241 | ||||||||||||||||
Cumulative Number of Reported Claims | 17,581 | 17,581 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (240) | $ (240) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (199) | (199) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,741 | 1,753 | 1,741 | 1,753 | 1,729 | 1,733 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 42 | 42 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2014 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (33) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (240) | (207) | (240) | (207) | (198) | (159) | ||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,573 | 1,387 | 1,573 | 1,387 | 1,158 | 849 | 366 | 66 | ||||||||||
2014 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,769 | 2,789 | 2,769 | 2,789 | 2,770 | 2,784 | 2,710 | 2,943 | ||||||||||
Change in Incurred Loss and ALAE | (32) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (20) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 101 | $ 101 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 60,126 | 60,126 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (76) | $ (76) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (60) | (60) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,693 | 2,725 | 2,693 | 2,725 | 2,709 | 2,717 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 41 | 41 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,558 | 2,466 | 2,558 | 2,466 | 2,326 | 2,113 | 1,761 | 913 | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2014 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (12) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (76) | (64) | (76) | (64) | (61) | (67) | ||||||||||||
2014 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,584 | 1,583 | 1,584 | 1,583 | 1,572 | 1,572 | 1,562 | 1,552 | ||||||||||
Change in Incurred Loss and ALAE | 9 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 1 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 4 | $ 4 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 274,703 | 274,703 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (4) | $ (4) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (3) | (3) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,580 | 1,571 | 1,580 | 1,571 | 1,564 | 1,564 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1 | 1 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,555 | 1,536 | 1,555 | 1,536 | 1,507 | 1,463 | 1,380 | 959 | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2014 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 8 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (4) | (12) | (4) | (12) | (8) | (8) | ||||||||||||
2014 | UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,062 | 1,037 | 1,062 | 1,037 | 1,042 | 1,035 | 1,011 | 1,040 | ||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 25 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 128 | $ 128 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 178,140 | 178,140 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 696 | 631 | $ 696 | 631 | 530 | 410 | 259 | 72 | ||||||||||
2014 | UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,452 | 1,478 | 1,452 | 1,478 | 1,469 | 1,479 | 1,499 | 1,474 | ||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (26) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 16 | $ 16 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 52,060 | 52,060 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,346 | 1,319 | $ 1,346 | 1,319 | 1,280 | 1,211 | 927 | 318 | ||||||||||
2014 | UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,718 | 2,718 | 2,718 | 2,718 | 2,727 | 2,730 | 2,748 | 2,738 | ||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 10 | $ 10 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,793,862 | 1,793,862 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,672 | 2,648 | $ 2,672 | 2,648 | 2,590 | 2,478 | 2,253 | 1,498 | ||||||||||
2014 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 375 | 383 | 375 | 383 | 459 | 453 | 475 | 379 | ||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (8) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 64 | $ 64 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 2,370 | 2,370 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 268 | 262 | $ 268 | 262 | 233 | 185 | 96 | $ 21 | ||||||||||
2015 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,722 | 1,814 | 1,722 | 1,814 | 1,866 | 1,864 | 1,708 | |||||||||||
Change in Incurred Loss and ALAE | (184) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (92) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 558 | $ 558 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 35,838 | 35,838 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (588) | $ (588) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (442) | (442) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,134 | 1,318 | 1,134 | 1,318 | 1,279 | 1,279 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 116 | 116 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 925 | 854 | 925 | 854 | 725 | 524 | 234 | |||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2015 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (92) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (588) | (496) | (588) | (496) | (587) | (585) | ||||||||||||
2015 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,656 | 1,603 | 1,656 | 1,603 | 1,440 | 1,463 | 989 | |||||||||||
Change in Incurred Loss and ALAE | 24 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 53 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 444 | $ 444 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 2,544 | 2,544 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (493) | $ (493) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (392) | (392) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,163 | 1,139 | 1,163 | 1,139 | 1,015 | 1,027 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 52 | 52 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 935 | 718 | 935 | 718 | 391 | 210 | 9 | |||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2015 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (29) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (493) | (464) | (493) | (464) | (425) | (436) | ||||||||||||
2015 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,794 | 1,736 | 1,794 | 1,736 | 1,829 | 1,762 | 1,329 | |||||||||||
Change in Incurred Loss and ALAE | 70 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 58 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 259 | $ 259 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 33,313 | 33,313 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (301) | $ (301) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (229) | (229) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,493 | 1,423 | 1,493 | 1,423 | 1,373 | 1,361 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 30 | 30 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,351 | 1,087 | 1,351 | 1,087 | 769 | 309 | 105 | |||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2015 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 12 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (301) | (313) | (301) | (313) | (456) | (401) | ||||||||||||
2015 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,830 | 1,788 | 1,830 | 1,788 | 1,743 | 1,762 | 1,737 | |||||||||||
Change in Incurred Loss and ALAE | 90 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 42 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 248 | $ 248 | ||||||||||||||||
Cumulative Number of Reported Claims | 16,156 | 16,156 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (278) | $ (278) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (213) | (213) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,552 | 1,462 | 1,552 | 1,462 | 1,430 | 1,429 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 35 | 35 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2015 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 48 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (278) | (326) | (278) | (326) | (313) | (333) | ||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,282 | 1,055 | 1,282 | 1,055 | 791 | 390 | 63 | |||||||||||
2015 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,864 | 2,900 | 2,864 | 2,900 | 2,911 | 2,978 | 3,102 | |||||||||||
Change in Incurred Loss and ALAE | (43) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (36) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 122 | $ 122 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 58,524 | 58,524 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (94) | $ (94) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (75) | (75) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,770 | 2,813 | 2,770 | 2,813 | 2,813 | 2,837 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 47 | 47 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,617 | 2,491 | 2,617 | 2,491 | 2,237 | 1,871 | 1,037 | |||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2015 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | (7) | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (94) | (87) | (94) | (87) | (98) | (141) | ||||||||||||
2015 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,482 | 1,483 | 1,482 | 1,483 | 1,494 | 1,498 | 1,511 | |||||||||||
Change in Incurred Loss and ALAE | 4 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 9 | $ 9 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 260,468 | 260,468 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (6) | $ (6) | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (5) | (5) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,476 | 1,472 | 1,476 | 1,472 | 1,475 | 1,476 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 4 | 4 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,455 | 1,439 | 1,455 | 1,439 | 1,411 | 1,320 | 931 | |||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2015 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 5 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (6) | (11) | (6) | (11) | (19) | (22) | ||||||||||||
2015 | UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,237 | 1,176 | 1,237 | 1,176 | 1,279 | 1,236 | 1,097 | |||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 61 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 251 | $ 251 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 192,412 | 192,412 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 685 | 569 | $ 685 | 569 | 433 | 240 | 71 | |||||||||||
2015 | UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,451 | 1,476 | 1,451 | 1,476 | 1,518 | 1,538 | 1,601 | |||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (25) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 23 | $ 23 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 57,667 | 57,667 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,351 | 1,328 | $ 1,351 | 1,328 | 1,215 | 931 | 347 | |||||||||||
2015 | UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,769 | 2,772 | 2,769 | 2,772 | 2,783 | 2,780 | 2,806 | |||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (3) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 17 | $ 17 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,773,628 | 1,773,628 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,681 | 2,637 | $ 2,681 | 2,637 | 2,516 | 2,291 | 1,516 | |||||||||||
2015 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 504 | 503 | 504 | 503 | 550 | 523 | 439 | |||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 1 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 101 | $ 101 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 2,397 | 2,397 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 337 | 320 | $ 337 | 320 | 238 | 132 | $ 35 | |||||||||||
2016 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,140 | 1,318 | 1,140 | 1,318 | 1,346 | 1,299 | ||||||||||||
Change in Incurred Loss and ALAE | (178) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (178) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 403 | $ 403 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 30,588 | 30,588 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,140 | 1,318 | 1,140 | 1,318 | 1,346 | 1,299 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 403 | 403 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 584 | 521 | 584 | 521 | 378 | 147 | ||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2016 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
2016 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,171 | 1,162 | 1,171 | 1,162 | 1,146 | 898 | ||||||||||||
Change in Incurred Loss and ALAE | 9 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 9 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 514 | $ 514 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,980 | 1,980 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,171 | 1,162 | 1,171 | 1,162 | 1,146 | 898 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 514 | 514 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 388 | 204 | 388 | 204 | 80 | 28 | ||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2016 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
2016 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,391 | 1,321 | 1,391 | 1,321 | 1,343 | 1,339 | ||||||||||||
Change in Incurred Loss and ALAE | 70 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 70 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 513 | $ 513 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 26,834 | 26,834 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,391 | 1,321 | 1,391 | 1,321 | 1,343 | 1,339 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 513 | 513 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 703 | 489 | 703 | 489 | 298 | 77 | ||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2016 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
2016 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,064 | 1,993 | 2,064 | 1,993 | 1,855 | 1,605 | ||||||||||||
Change in Incurred Loss and ALAE | 71 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 71 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 380 | $ 380 | ||||||||||||||||
Cumulative Number of Reported Claims | 16,000 | 16,000 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,064 | 1,993 | 2,064 | 1,993 | 1,855 | 1,605 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 380 | 380 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2016 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,358 | 1,002 | 1,358 | 1,002 | 499 | 73 | ||||||||||||
2016 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,086 | 3,099 | 3,086 | 3,099 | 3,184 | 3,147 | ||||||||||||
Change in Incurred Loss and ALAE | (13) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (13) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 197 | $ 197 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 53,525 | 53,525 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 3,086 | 3,099 | 3,086 | 3,099 | 3,184 | 3,147 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 197 | 197 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,612 | 2,361 | 2,612 | 2,361 | 2,027 | 1,000 | ||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2016 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
2016 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,540 | 1,533 | 1,540 | 1,533 | 1,533 | 1,536 | ||||||||||||
Change in Incurred Loss and ALAE | 7 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 7 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 23 | $ 23 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 246,354 | 246,354 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,540 | 1,533 | 1,540 | 1,533 | 1,533 | 1,536 | ||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 23 | 23 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,460 | 1,422 | 1,460 | 1,422 | 1,344 | 857 | ||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2016 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
2016 | UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,505 | 1,498 | 1,505 | 1,498 | 1,458 | 1,317 | ||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 7 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 296 | $ 296 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 229,131 | 229,131 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 778 | 588 | $ 778 | 588 | 380 | 120 | ||||||||||||
2016 | UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,702 | 1,697 | 1,702 | 1,697 | 1,704 | 1,558 | ||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 5 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 31 | $ 31 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 59,637 | 59,637 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,512 | 1,373 | $ 1,512 | 1,373 | 1,120 | 460 | ||||||||||||
2016 | UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,726 | 2,734 | 2,726 | 2,734 | 2,748 | 2,755 | ||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (8) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 31 | $ 31 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,798,299 | 1,798,299 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,582 | 2,475 | $ 2,582 | 2,475 | 2,254 | 1,517 | ||||||||||||
2016 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 269 | 274 | 269 | 274 | 285 | 294 | ||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (5) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 55 | $ 55 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,684 | 1,684 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 178 | 163 | $ 178 | 163 | 140 | $ 53 | ||||||||||||
2017 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 776 | 850 | 776 | 850 | 789 | |||||||||||||
Change in Incurred Loss and ALAE | (74) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (74) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 352 | $ 352 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 26,538 | 26,538 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 776 | 850 | 776 | 850 | 789 | |||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 352 | 352 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 294 | 224 | 294 | 224 | 93 | |||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2017 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | |||||||||||||
2017 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,097 | 1,002 | 1,097 | 1,002 | 856 | |||||||||||||
Change in Incurred Loss and ALAE | 95 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 95 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 542 | $ 542 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,241 | 1,241 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,097 | 1,002 | 1,097 | 1,002 | 856 | |||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 542 | 542 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 156 | 45 | 156 | 45 | 1 | |||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2017 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | |||||||||||||
2017 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 738 | 629 | 738 | 629 | 602 | |||||||||||||
Change in Incurred Loss and ALAE | 109 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 109 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 411 | $ 411 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 20,255 | 20,255 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 738 | 629 | 738 | 629 | 602 | |||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 411 | 411 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 216 | 111 | 216 | 111 | 51 | |||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2017 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | |||||||||||||
2017 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,756 | 1,675 | 1,756 | 1,675 | 1,564 | |||||||||||||
Change in Incurred Loss and ALAE | 81 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 81 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 617 | $ 617 | ||||||||||||||||
Cumulative Number of Reported Claims | 14,939 | 14,939 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,756 | 1,675 | 1,756 | 1,675 | 1,564 | |||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 617 | 617 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2017 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 761 | 391 | 761 | 391 | 64 | |||||||||||||
2017 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 4,744 | 4,903 | 4,744 | 4,903 | 5,370 | |||||||||||||
Change in Incurred Loss and ALAE | (159) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (159) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 398 | $ 398 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 77,455 | 77,455 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 4,744 | 4,903 | 4,744 | 4,903 | 5,370 | |||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 398 | 398 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 3,792 | 3,070 | 3,792 | 3,070 | 1,360 | |||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2017 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | |||||||||||||
2017 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,161 | 2,287 | 2,161 | 2,287 | 2,028 | |||||||||||||
Change in Incurred Loss and ALAE | (126) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (126) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 114 | $ 114 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 217,752 | 217,752 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,161 | 2,287 | 2,161 | 2,287 | 2,028 | |||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 114 | 114 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,896 | 1,672 | 1,896 | 1,672 | 941 | |||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2017 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | |||||||||||||
2017 | UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,286 | 1,326 | 1,286 | 1,326 | 1,349 | |||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (40) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 500 | $ 500 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 245,792 | 245,792 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 449 | 282 | $ 449 | 282 | 97 | |||||||||||||
2017 | UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,634 | 1,642 | 1,634 | 1,642 | 1,678 | |||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (8) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 76 | $ 76 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 55,694 | 55,694 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,237 | 966 | $ 1,237 | 966 | 355 | |||||||||||||
2017 | UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,590 | 2,609 | 2,590 | 2,609 | 2,693 | |||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (19) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 64 | $ 64 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,715,573 | 1,715,573 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,401 | 2,208 | $ 2,401 | 2,208 | 1,482 | |||||||||||||
2017 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 232 | 238 | 232 | 238 | 197 | |||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (6) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 130 | $ 130 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 648 | 648 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 84 | 59 | $ 84 | 59 | 13 | |||||||||||||
2018 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,021 | 998 | 1,021 | 998 | ||||||||||||||
Change in Incurred Loss and ALAE | 23 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 23 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 641 | $ 641 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 21,034 | 21,034 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,021 | 998 | 1,021 | 998 | ||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 641 | 641 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 215 | 85 | 215 | 85 | ||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2018 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | ||||||||||||||
2018 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 646 | 648 | 646 | 648 | ||||||||||||||
Change in Incurred Loss and ALAE | (2) | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (2) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 404 | $ 404 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 618 | 618 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 646 | 648 | 646 | 648 | ||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 404 | 404 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 125 | 1 | 125 | 1 | ||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2018 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | ||||||||||||||
2018 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 845 | 802 | 845 | 802 | ||||||||||||||
Change in Incurred Loss and ALAE | 43 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 43 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 621 | $ 621 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 15,010 | 15,010 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 845 | 802 | 845 | 802 | ||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 621 | 621 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 122 | 43 | 122 | 43 | ||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2018 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | ||||||||||||||
2018 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,766 | 1,640 | 1,766 | 1,640 | ||||||||||||||
Change in Incurred Loss and ALAE | 126 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 126 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,017 | $ 1,017 | ||||||||||||||||
Cumulative Number of Reported Claims | 14,349 | 14,349 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,766 | 1,640 | 1,766 | 1,640 | ||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1,017 | 1,017 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2018 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | ||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 486 | 86 | 486 | 86 | ||||||||||||||
2018 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,776 | 3,715 | 3,776 | 3,715 | ||||||||||||||
Change in Incurred Loss and ALAE | 61 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 61 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 506 | $ 506 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 65,375 | 65,375 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 3,776 | 3,715 | 3,776 | 3,715 | ||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 506 | 506 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,663 | 1,060 | 2,663 | 1,060 | ||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2018 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | ||||||||||||||
2018 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,193 | 2,188 | 2,193 | 2,188 | ||||||||||||||
Change in Incurred Loss and ALAE | 5 | |||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 5 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 229 | $ 229 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 97,349 | 97,349 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,193 | 2,188 | 2,193 | 2,188 | ||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 229 | 229 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,939 | 1,227 | 1,939 | 1,227 | ||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2018 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | ||||||||||||||
2018 | UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,423 | 1,376 | 1,423 | 1,376 | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 47 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 611 | $ 611 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 250,301 | 250,301 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 374 | 114 | $ 374 | 114 | ||||||||||||||
2018 | UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,654 | 1,650 | 1,654 | 1,650 | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 4 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 148 | $ 148 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 45,564 | 45,564 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 988 | 319 | $ 988 | 319 | ||||||||||||||
2018 | UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,312 | 3,396 | 3,312 | 3,396 | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (84) | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 196 | $ 196 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,848,711 | 1,848,711 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,920 | 1,895 | $ 2,920 | 1,895 | ||||||||||||||
2018 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 119 | 76 | 119 | 76 | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 43 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 59 | $ 59 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 307 | 307 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 47 | 33 | $ 47 | 33 | ||||||||||||||
2019 | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 887 | 887 | ||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 639 | $ 639 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 13,919 | 13,919 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 887 | 887 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 639 | 639 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 93 | 93 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 577 | 577 | ||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 547 | $ 547 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 370 | 370 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 577 | 577 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 547 | 547 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 7 | 7 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,059 | 1,059 | ||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 935 | $ 935 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 15,546 | 15,546 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,059 | 1,059 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 935 | 935 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 53 | 53 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,503 | 1,503 | ||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,315 | $ 1,315 | ||||||||||||||||
Cumulative Number of Reported Claims | 11,784 | 11,784 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,503 | 1,503 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1,315 | 1,315 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 94 | 94 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,824 | 2,824 | ||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 785 | $ 785 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 69,105 | 69,105 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,824 | 2,824 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 785 | 785 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,138 | 1,138 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,593 | 1,593 | ||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 470 | $ 470 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 68,057 | 68,057 | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 | ||||||||||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,593 | 1,593 | ||||||||||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 470 | 470 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 884 | 884 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Change in Incurred Loss and ALAE | 0 | |||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
2019 | UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,301 | 1,301 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 936 | $ 936 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 210,025 | 210,025 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 100 | $ 100 | ||||||||||||||||
2019 | UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,248 | 1,248 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 462 | $ 462 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 25,179 | 25,179 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 280 | $ 280 | ||||||||||||||||
2019 | UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,466 | 2,466 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 404 | $ 404 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 1,708,106 | 1,708,106 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,483 | $ 1,483 | ||||||||||||||||
2019 | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 69 | 69 | ||||||||||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 42 | $ 42 | ||||||||||||||||
Cumulative Number of Reported Claims | item | 127 | 127 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 24 | $ 24 | ||||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (210) | (210) | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 63 | 63 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (699) | 51 | (699) | 51 | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 54 | 54 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | (20) | (20) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 76 | 1,274 | 76 | 1,274 | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (170) | (170) | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 21 | 21 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 168 | (127) | 168 | (127) | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 11 | 11 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 38 | 38 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 463 | 298 | 463 | 298 | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (3) | (3) | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | (12) | (12) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (204) | (497) | (204) | (497) | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 1 | 1 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 13 | 13 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (96) | 255 | (96) | 255 | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | UK/Europe Casualty and Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 9 | 9 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 7 | 7 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 161 | 58 | 161 | 58 | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | UK/Europe Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (28) | (28) | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | (7) | (7) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (108) | (22) | (108) | (22) | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | UK/Europe and Japan Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 0 | 0 | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (119) | (116) | (119) | (116) | ||||||||||||||
2019 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Run-Off Long Tail Insurance Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (46) | (46) | ||||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 20 | 20 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (4) | (4) | (4) | (4) | ||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (2,971) | (2,971) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (5,735) | (5,735) | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | (2,074) | (2,074) | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (1,705) | (1,705) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (3,779) | (3,779) | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (952) | (952) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (2,176) | (2,176) | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (135) | (135) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (977) | (977) | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (114) | (114) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (395) | (395) | ||||||||||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | 0 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (6) | (6) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | (20) | (20) | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 11,354 | 11,354 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 1,534 | 1,588 | 1,534 | 1,588 | 0 | |||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 276 | 276 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 5,213 | 5,213 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Total | 10,546 | 10,546 | ||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | (6,799) | (6,799) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 538 | 612 | 538 | 612 | ||||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 94 | 94 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 4,285 | 4,285 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 12,454 | 12,454 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 440 | 685 | 440 | 685 | 0 | |||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 90 | 90 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 4,064 | 4,064 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 12,065 | 12,065 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 19 | 99 | 19 | 99 | 0 | |||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 59 | 59 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 5,154 | 5,154 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 27,948 | 27,948 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | 195 | 238 | 195 | 238 | 0 | |||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | (5) | (5) | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 4,950 | 4,950 | ||||||||||||||||
2019 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 16,744 | 16,744 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2010, net of reinsurance | (77) | $ (72) | (77) | $ (72) | $ 0 | |||||||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 15 | 15 | ||||||||||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 1,287 | 1,287 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Workers Compensation | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Excess Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Other Casualty | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Financial Lines | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Property and Special Risks | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Personal Insurance | ||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | $ 0 | $ 0 |
INSURANCE LIABILITIES (Detail_4
INSURANCE LIABILITIES (Details - Reconciliation of change in net ultimates to prior year development) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | $ (62) | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | (232) | ||
Prior Year Development | (294) | ||
Total, prior years, excluding discount and amortization of deferred gain | (340) | $ 1,429 | $ 1,565 |
Validus Holdings, Ltd | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | 30 | ||
U.S. Workers Compensation | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | (192) | ||
Re-Attribution of ADC Recovery | (178) | ||
Amortization of Deferred Gain at Inception | (72) | ||
Prior Year Development | (442) | ||
Total, prior years, excluding discount and amortization of deferred gain | (552) | ||
U.S. Excess Casualty | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | 26 | ||
Re-Attribution of ADC Recovery | 55 | ||
Amortization of Deferred Gain at Inception | (55) | ||
Prior Year Development | 26 | ||
Total, prior years, excluding discount and amortization of deferred gain | 42 | ||
U.S. Other Casualty | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | 188 | ||
Re-Attribution of ADC Recovery | 25 | ||
Amortization of Deferred Gain at Inception | (53) | ||
Prior Year Development | 160 | ||
Total, prior years, excluding discount and amortization of deferred gain | 317 | ||
U.S. Financial Lines | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | 326 | ||
Re-Attribution of ADC Recovery | 1 | ||
Amortization of Deferred Gain at Inception | (37) | ||
Prior Year Development | 290 | ||
Total, prior years, excluding discount and amortization of deferred gain | 414 | ||
U.S. Property and Special Risks | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | (288) | ||
Re-Attribution of ADC Recovery | 114 | ||
Amortization of Deferred Gain at Inception | (13) | ||
Prior Year Development | (187) | ||
Total, prior years, excluding discount and amortization of deferred gain | (189) | ||
U.S. Personal Insurance | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | (85) | ||
Re-Attribution of ADC Recovery | (17) | ||
Amortization of Deferred Gain at Inception | (2) | ||
Prior Year Development | (104) | ||
Total, prior years, excluding discount and amortization of deferred gain | (110) | ||
UK/Europe Casualty and Financial Lines | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | 161 | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | 0 | ||
Prior Year Development | 161 | ||
Total, prior years, excluding discount and amortization of deferred gain | 145 | ||
UK/Europe Property and Special Risks | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | (108) | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | 0 | ||
Prior Year Development | (108) | ||
Total, prior years, excluding discount and amortization of deferred gain | (73) | ||
UK/Europe and Japan Personal Insurance | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | (119) | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | 0 | ||
Prior Year Development | (119) | ||
Total, prior years, excluding discount and amortization of deferred gain | (119) | ||
U.S. Run-Off Long Tail Insurance Lines | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | (4) | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | 0 | ||
Prior Year Development | (4) | ||
Total, prior years, excluding discount and amortization of deferred gain | 22 | ||
Other Product Lines | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | 33 | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | 0 | ||
Prior Year Development | 33 | ||
Asbestos LPT | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Ceded | (1) | ||
Adverse Development Reinsurance | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Ceded | (277) | ||
Adverse Development Reinsurance | U.S. Workers Compensation | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | 507 | ||
Adverse Development Reinsurance | U.S. Excess Casualty | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | (50) | ||
Adverse Development Reinsurance | U.S. Other Casualty | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | 21 | ||
Adverse Development Reinsurance | U.S. Financial Lines | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | (136) | ||
Adverse Development Reinsurance | U.S. Property and Special Risks | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | (74) | ||
Adverse Development Reinsurance | U.S. Personal Insurance | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Claims and Claims Adjustment Expense | $ 14 |
INSURANCE LIABILITIES (Detail_5
INSURANCE LIABILITIES (Details - Annual Percentage Claims Payout) | Dec. 31, 2019 |
U.S. Workers Compensation | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 13.80% |
Year 2 | 17.40% |
Year 3 | 12.50% |
Year 4 | 8.50% |
Year 5 | 6.90% |
Year 6 | 4.60% |
Year 7 | 3.30% |
Year 8 | 2.30% |
Year 9 | 1.70% |
Year 10 | 1.50% |
U.S. Excess Casualty | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 0.70% |
Year 2 | 8.20% |
Year 3 | 11.30% |
Year 4 | 14.20% |
Year 5 | 12.80% |
Year 6 | 11.10% |
Year 7 | 8.20% |
Year 8 | 8.30% |
Year 9 | 2.70% |
Year 10 | 1.40% |
U.S. Other Casualty | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 8.60% |
Year 2 | 14.80% |
Year 3 | 15.50% |
Year 4 | 15.10% |
Year 5 | 12.50% |
Year 6 | 8.60% |
Year 7 | 6.10% |
Year 8 | 3.20% |
Year 9 | 3.20% |
Year 10 | 1.60% |
U.S. Financial Lines | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 4.20% |
Year 2 | 18.00% |
Year 3 | 21.60% |
Year 4 | 16.70% |
Year 5 | 13.10% |
Year 6 | 8.70% |
Year 7 | 5.40% |
Year 8 | 5.00% |
Year 9 | 1.40% |
Year 10 | 1.70% |
U.S. Property and Special Risks | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 30.60% |
Year 2 | 35.20% |
Year 3 | 13.50% |
Year 4 | 8.00% |
Year 5 | 5.20% |
Year 6 | 3.70% |
Year 7 | 1.50% |
Year 8 | 1.00% |
Year 9 | 0.70% |
Year 10 | 0.50% |
U.S. Personal Insurance | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 58.60% |
Year 2 | 29.80% |
Year 3 | 5.10% |
Year 4 | 2.10% |
Year 5 | 1.20% |
Year 6 | 0.60% |
Year 7 | 0.30% |
Year 8 | 0.20% |
Year 9 | 0.10% |
Year 10 | 0.10% |
UK/Europe Casualty and Financial Lines | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 7.90% |
Year 2 | 16.90% |
Year 3 | 13.60% |
Year 4 | 13.00% |
Year 5 | 9.90% |
Year 6 | 7.70% |
Year 7 | 6.70% |
Year 8 | 4.30% |
Year 9 | 2.50% |
Year 10 | 3.80% |
UK/Europe and Japan Personal Insurance | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 25.10% |
Year 2 | 39.40% |
Year 3 | 17.20% |
Year 4 | 6.70% |
Year 5 | 2.90% |
Year 6 | 1.90% |
Year 7 | 0.70% |
Year 8 | 0.60% |
Year 9 | 0.40% |
Year 10 | (0.90%) |
UK/Europe Property and Special Risks | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 57.10% |
Year 2 | 27.40% |
Year 3 | 7.90% |
Year 4 | 3.90% |
Year 5 | 1.90% |
Year 6 | 1.00% |
Year 7 | 0.60% |
Year 8 | 0.30% |
Year 9 | 0.20% |
Year 10 | 0.20% |
U.S. Run-Off Long Tail Insurance Lines | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 14.20% |
Year 2 | 18.40% |
Year 3 | 16.60% |
Year 4 | 13.80% |
Year 5 | 9.00% |
Year 6 | 5.10% |
Year 7 | 3.70% |
Year 8 | 1.50% |
Year 9 | 2.20% |
Year 10 | 2.50% |
INSURANCE LIABILITIES (Detail_6
INSURANCE LIABILITIES (Details - Narratives) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Gross Loss Reserves Before Reinsurance and Discount Net of Subrogation | $ 12,200,000,000 | $ 12,300,000,000 | $ 12,200,000,000 | $ 12,300,000,000 | ||||||||
Collateral Held For Deductible Recoverable Amounts | 8,900,000,000 | 9,200,000,000 | 8,900,000,000 | 9,200,000,000 | ||||||||
Total prior year (favourable) unfavorable development | (119,000,000) | $ (74,000,000) | $ (132,000,000) | $ (15,000,000) | 546,000,000 | $ 949,000,000 | $ (26,000,000) | $ (40,000,000) | ||||
Liability for Claims and Claims Adjustment Expense | 78,328,000,000 | 83,639,000,000 | 78,328,000,000 | 83,639,000,000 | $ 78,393,000,000 | $ 77,077,000,000 | ||||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below (Last 10 Years) | 47,259,000,000 | 51,949,000,000 | 47,259,000,000 | 51,949,000,000 | 51,685,000,000 | $ 61,545,000,000 | ||||||
Discounting Of Loss Reserves [Abstract] | ||||||||||||
Loss Reserve Discount | 1,549,000,000 | 2,035,000,000 | $ 1,549,000,000 | 2,035,000,000 | ||||||||
Tabular Discount Rate | 3.50% | |||||||||||
Workers Compensation Tabular Discount Amount | 582,000,000 | 603,000,000 | $ 582,000,000 | 603,000,000 | ||||||||
Workers Compensation Non Tabular Discount Amount | 967,000,000 | 1,400,000,000 | 967,000,000 | 1,400,000,000 | ||||||||
(Increase) Decrease in Loss Reserve Discount | (955,000,000) | 371,000,000 | (187,000,000) | |||||||||
Effective Interest Rates | ||||||||||||
Discounting Of Loss Reserves [Abstract] | ||||||||||||
(Increase) Decrease in Loss Reserve Discount | (747,000,000) | |||||||||||
U.S. Workers Compensation | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (699,000,000) | 51,000,000 | (31,000,000) | |||||||||
U.S. Excess Casualty | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 76,000,000 | 1,300,000,000 | 254,000,000 | |||||||||
Analysis of loss reserves using traditional loss development and expected loss ratio methods | 10,000,000 | |||||||||||
Analysis of Loss reserves for expected losses above threshold | 10,000,000 | |||||||||||
U.S. Other Casualty | Commercial Auto Liability | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 23,000,000 | (142,000,000) | 42,000,000 | |||||||||
U.S. Other Casualty | General Liability | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 220,000,000 | 214,000,000 | 330,000,000 | |||||||||
U.S. Other Casualty | Medical Malpractice | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 30,000,000 | (158,000,000) | (23,000,000) | |||||||||
U.S. Other Casualty | Other Product Lines | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (105,000,000) | (41,000,000) | (133,000,000) | |||||||||
U.S. Financial Lines | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 463,000,000 | 298,000,000 | 345,000,000 | |||||||||
U.S. Property and Special Risks | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (204,000,000) | (497,000,000) | 115,000,000 | |||||||||
U.S. Personal Insurance | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (96,000,000) | 255,000,000 | 16,000,000 | |||||||||
UK/Europe Casualty and Financial Lines | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 161,000,000 | 58,000,000 | 507,000,000 | |||||||||
UK/Europe Property and Special Risks | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (108,000,000) | (22,000,000) | 157,000,000 | |||||||||
UK/Europe and Japan Personal Insurance | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (119,000,000) | (116,000,000) | (58,000,000) | |||||||||
U.S. Commercial long-tail exposures | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (4,000,000) | (4,000,000) | (30,000,000) | |||||||||
U.S. Commercial long-tail exposures | Asbestos | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (37,000,000) | |||||||||||
U.S. Commercial long-tail exposures | Asbestos | NICO | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Increase (Decrease) in loss reserves, gross | 1,000,000 | 96,000,000 | 50,000,000 | |||||||||
Increase (Decrease) in loss reserves, net | 0 | 0 | ||||||||||
U.S. Commercial long-tail exposures | Environmental | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | 95,000,000 | 150,000,000 | 22,000,000 | |||||||||
U.S. Commercial long-tail exposures | Run-off excess workers compensation lines | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (100,000,000) | 0 | 0 | |||||||||
U.S. Commercial long-tail exposures | Other Casualty Run-Off | ||||||||||||
Insurance Liabilities Disclosure [Line Items] | ||||||||||||
Total prior year (favourable) unfavorable development | (154,000,000) | (15,000,000) | ||||||||||
Legacy General Insrance Run-Off Lines | ||||||||||||
Discounting Of Loss Reserves [Abstract] | ||||||||||||
Loss Reserve Discount | $ 666,000,000 | $ 973,000,000 | 666,000,000 | 973,000,000 | ||||||||
(Increase) Decrease in Loss Reserve Discount | $ (307,000,000) | $ 55,000,000 | $ (69,000,000) |
INSURANCE LIABILITIES (Detail_7
INSURANCE LIABILITIES (Details - Discounting of Reserves) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Discounting of Reserves [Line Items] | |||
Tabular Discount Rate | 3.50% | ||
Workers Compensation Tabular Discount Amount | $ 582 | $ 603 | |
Workers Compensation Non Tabular Discount Amount | 967 | 1,400 | |
U.S. Workers' compensation | 2,800 | 3,755 | |
Retroactive Reinsurance | (1,251) | (1,720) | |
Total reserve discount | 1,549 | 2,035 | |
Current accident year | 108 | 119 | $ 114 |
Accretion and other adjustments to prior year discount | (316) | (166) | (230) |
Effect of interest rate changes | (747) | 418 | (71) |
Net loss reserve discount benefit (charge) | (955) | 371 | (187) |
Change in discount on loss reserves ceded under retroactive reinsurance | 469 | (180) | (1,539) |
Net change in total reserve discount | (486) | 191 | (1,726) |
North America Commerical Insurance | |||
Discounting of Reserves [Line Items] | |||
U.S. Workers' compensation | 2,134 | 2,782 | |
Retroactive Reinsurance | (1,251) | (1,720) | |
Total reserve discount | 883 | 1,062 | |
Current accident year | 108 | 119 | 114 |
Accretion and other adjustments to prior year discount | (229) | (108) | (186) |
Effect of interest rate changes | (527) | 305 | (46) |
Net loss reserve discount benefit (charge) | (648) | 316 | (118) |
Change in discount on loss reserves ceded under retroactive reinsurance | 469 | (180) | (1,539) |
Net change in total reserve discount | (179) | 136 | (1,657) |
Legacy General Insrance Run-Off Lines | |||
Discounting of Reserves [Line Items] | |||
U.S. Workers' compensation | 666 | 973 | |
Retroactive Reinsurance | 0 | 0 | |
Total reserve discount | 666 | 973 | |
Current accident year | 0 | 0 | 0 |
Accretion and other adjustments to prior year discount | (87) | (58) | (44) |
Effect of interest rate changes | (220) | 113 | (25) |
Net loss reserve discount benefit (charge) | (307) | 55 | (69) |
Change in discount on loss reserves ceded under retroactive reinsurance | 0 | 0 | 0 |
Net change in total reserve discount | $ (307) | 55 | $ (69) |
New York | |||
Discounting of Reserves [Line Items] | |||
Nontabular discount rate | 5.00% | ||
Pennsylvania | Accident Year 2001 And prior | |||
Discounting of Reserves [Line Items] | |||
Nontabular discount rate | 6.00% | ||
United Kingdom | |||
Discounting of Reserves [Line Items] | |||
Total reserve discount | $ 172 | 163 | |
Net change in total reserve discount | $ 9 | $ (9) |
INSURANCE LIABILITIES (Detail_8
INSURANCE LIABILITIES (Details - Future Policy Benefits) - Life Insurance | Dec. 31, 2019 |
Maximum | |
Assumptions for liability for future life policy benefits | |
Liability for Future Policy Benefits, Interest Rate | 14.60% |
Minimum | |
Assumptions for liability for future life policy benefits | |
Liability for Future Policy Benefits, Interest Rate | 0.20% |
INSURANCE LIABILITIES (Detail_9
INSURANCE LIABILITIES (Details - Policyholder contract deposits) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 151,869 | $ 142,262 |
Assumptions for liability for policyholder contract deposits | ||
Percentage of gross insurance in force | 1.30% | |
Percentage of gross premiums and other consideration | 1.80% | |
Maximum | ||
Assumptions for liability for policyholder contract deposits | ||
Withdrawal charges, high end of range (as a percent) | 10.00% | |
Minimum | ||
Assumptions for liability for policyholder contract deposits | ||
Withdrawal charges, low end of range (as a percent) | 0.30% | |
Fixed Annuities | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 50,452 | 49,695 |
Group Retirement | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 42,207 | 41,212 |
Life Insurance | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 13,930 | 12,829 |
Variable and Index Annuities | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 30,878 | 24,378 |
Institutional Markets | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 9,929 | 9,497 |
Legacy Portfolio | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 4,473 | $ 4,651 |
INSURANCE LIABILITIES (Detai_10
INSURANCE LIABILITIES (Details - Schedule of universal life policies with secondary guarantees) - Universal life products - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Balance at the beginning of the period | $ 2,640 | $ 2,351 | $ 2,095 |
Incurred guaranteed benefits | 514 | 758 | 705 |
Paid guaranteed benefits | (469) | (469) | (449) |
Balance at the end of the period | 2,685 | 2,640 | $ 2,351 |
Net Amount at Risk [Abstract] | |||
Account value | 2,850 | 2,665 | |
Net amount at risk | $ 59,924 | $ 54,161 | |
Average attained age of contract holders by product | 54 years | 55 years |
VARIABLE LIFE AND ANNUITY CON_3
VARIABLE LIFE AND ANNUITY CONTRACTS (Details - Annuity contracts with guarantees were invested in separate account investment options) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | $ 86,688 | $ 75,177 |
Equity Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 51,383 | 43,059 |
Bonds Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 7,881 | 7,231 |
Balanced Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 26,659 | 24,100 |
Money Market Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | $ 765 | $ 787 |
VARIABLE LIFE AND ANNUITY CON_4
VARIABLE LIFE AND ANNUITY CONTRACTS (Details - GMDB, GMIB, GMWB and GMAV) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | $ 4,009 | $ 3,138 | |
Guaranteed minimum death benefits (GMDB) | |||
Changes in GMDB for guarantees on variable contracts reflected in the general account | |||
Balance at the beginning of the period | 397 | 352 | $ 402 |
Reserve increase (decrease) | 35 | 93 | (14) |
Benefits paid | (40) | (43) | (42) |
Changes in reserves related to unrealized appreciation of investments | 15 | (5) | 6 |
Balance at the end of the period | 407 | 397 | $ 352 |
Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 45,000 | 41,000 | |
Net amount at risk | 328 | 215 | |
Embedded derivatives | |||
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | 6,900 | 4,100 | |
Embedded derivatives | Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB) | |||
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | 2,500 | 1,900 | |
Variable contract, net deposits plus a minimum return | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 98 | 89 | |
Net amount at risk | $ 1 | $ 1 | |
Average attained age of contract holders by product | 65 years | 63 years | |
Variable contract, net deposits plus a minimum return | Minimum | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Range of guaranteed minimum return rates (as a percent) | 0.00% | 0.00% | |
Variable contract, net deposits plus a minimum return | Maximum | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Range of guaranteed minimum return rates (as a percent) | 4.50% | 4.50% | |
Variable annuity contract, highest contract value attained | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | $ 16 | $ 15 | |
Net amount at risk | $ 0 | $ 1 | |
Average attained age of contract holders by product | 71 years | 68 years |
DEBT (Details - Total debt outs
DEBT (Details - Total debt outstanding) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 35,350 | $ 34,540 |
Collateral posted | 2,200 | 1,700 |
American International Group, Inc. | ||
Debt Instrument [Line Items] | ||
Long-term debt | 25,479 | 26,136 |
Uncollateralized Notes/Bonds/Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 345 | |
Collateralized Loans and Mortgages Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 46 | |
Notes and bonds payable | Uncollateralized Notes/Bonds/Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 20,467 | |
Notes and bonds payable | Uncollateralized Notes/Bonds/Loans Payable | AIGLH | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 282 | 282 |
Debt Instrument, Maturity, Start year | 2025 | |
Debt Instrument, Maturity, End Year | 2029 | |
Notes and bonds payable | Uncollateralized Notes/Bonds/Loans Payable | Validus Holdings, Ltd | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 8.88% | |
Long-term debt | $ 353 | 359 |
Debt Instrument, Maturity, End Year | 2040 | |
Notes and bonds payable | Uncollateralized Notes/Bonds/Loans Payable | Maximum | AIGLH | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 7.50% | |
Notes and bonds payable | Uncollateralized Notes/Bonds/Loans Payable | Minimum | AIGLH | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 6.63% | |
Junior subordinated debt | Uncollateralized Notes/Bonds/Loans Payable | AIGLH | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 361 | 361 |
Debt Instrument, Maturity, Start year | 2030 | |
Debt Instrument, Maturity, End Year | 2046 | |
Junior subordinated debt | Uncollateralized Notes/Bonds/Loans Payable | Maximum | AIGLH | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 8.50% | |
Junior subordinated debt | Uncollateralized Notes/Bonds/Loans Payable | Minimum | AIGLH | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 7.57% | |
AIG Japan Holdings Kabushiki Kaisha | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 344 | |
AIG Japan Holdings Kabushiki Kaisha | Uncollateralized Notes/Bonds/Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 344 | |
AIG Japan Holdings Kabushiki Kaisha | Collateralized Loans and Mortgages Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | |
Other subsidiaries notes, bonds, loans and mortgages payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 47 | |
Other subsidiaries notes, bonds, loans and mortgages payable | Uncollateralized Notes/Bonds/Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1 | |
Other subsidiaries notes, bonds, loans and mortgages payable | Collateralized Loans and Mortgages Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 46 | |
Debt of consolidated investments | ||
Debt Instrument [Line Items] | ||
Long-term debt | 9,871 | 8,404 |
Debt issued or guaranteed | ||
Debt Instrument [Line Items] | ||
Long-term debt | 25,432 | 25,968 |
Uncollateralized Notes/Bonds/Loans Payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 23,349 | 23,734 |
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 20,467 | 20,853 |
Debt Instrument, Maturity, Start year | 2020 | |
Debt Instrument, Maturity, End Year | 2097 | |
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) | 0.00% | |
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,542 | 1,548 |
Debt Instrument, Maturity, Start year | 2037 | |
Debt Instrument, Maturity, End Year | 2058 | |
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 | AIG Japan Holdings Kabushiki Kaisha | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 344 | 331 |
Debt Instrument, Maturity, Start year | 2020 | |
Debt Instrument, Maturity, End Year | 2021 | |
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] | ||
Long-term debt | $ 2,083 | 2,234 |
Collateral posted | 1,500 | 1,500 |
Borrowings supported by assets | Notes and bonds payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 59 | 49 |
Debt Instrument, Maturity, Start year | 2030 | |
Debt Instrument, Maturity, End Year | 2040 | |
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) | 0.50% | |
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 21 | 21 |
Debt Instrument, Maturity, Start year | 2046 | |
Debt Instrument, Maturity, End Year | 2047 | |
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 1.92% | |
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 1.89% | |
Borrowings supported by assets | GIAs | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,003 | 2,164 |
Debt Instrument, Maturity, Start year | 2020 | |
Debt Instrument, Maturity, End Year | 2047 | |
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) | 1.79% | |
Debt not guaranteed | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 47 | |
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 47 | 168 |
Debt Instrument, Maturity, Start year | 2020 | |
Debt Instrument, Maturity, End Year | 2028 | |
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 3.86% | |
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 2.76% | |
Debt not guaranteed | Debt of consolidated investments | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 9,871 | 8,404 |
Debt Instrument, Maturity, Start year | 2020 | |
Debt Instrument, Maturity, End Year | 2062 | |
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] | ||
Long-term debt | $ 3,200 | 3,700 |
Debt not guaranteed | Debt of consolidated investments | Affordable Housing Partnership [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,100 | 1,800 |
Debt not guaranteed | Debt of consolidated investments | Other | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 4,600 | $ 2,900 |
DEBT (Details - Maturities of l
DEBT (Details - Maturities of long-term debt) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Maturities of long-term debt | ||
Total | $ 35,350 | $ 34,540 |
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | 391 | |
Long-term debt | 35,350 | 34,540 |
Uncollateralized Notes/Bonds/Loans Payable | ||
Maturities of long-term debt | ||
Total | 345 | |
Long-term debt | 345 | |
Collateralized Loans and Mortgages Payable | ||
Maturities of long-term debt | ||
Total | 46 | |
Long-term debt | 46 | |
American International Group, Inc. | ||
Maturities of long-term debt | ||
Total | 25,479 | 26,136 |
2020 | 1,536 | |
2021 | 1,876 | |
2022 | 1,562 | |
2023 | 1,732 | |
2024 | 1,138 | |
Thereafter | 17,635 | |
Long-term debt | 25,479 | 26,136 |
Notes and bonds payable | Uncollateralized Notes/Bonds/Loans Payable | ||
Maturities of long-term debt | ||
Total | 20,467 | |
Long-term debt | 20,467 | |
Notes and bonds payable | Validus Holdings, Ltd | Uncollateralized Notes/Bonds/Loans Payable | ||
Maturities of long-term debt | ||
Total | 353 | 359 |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 353 | |
Long-term debt | 353 | 359 |
Notes and bonds payable | AIGLH | Uncollateralized Notes/Bonds/Loans Payable | ||
Maturities of long-term debt | ||
Total | 282 | 282 |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 282 | |
Long-term debt | 282 | 282 |
Junior subordinated debt | AIGLH | Uncollateralized Notes/Bonds/Loans Payable | ||
Maturities of long-term debt | ||
Total | 361 | 361 |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 361 | |
Long-term debt | 361 | 361 |
AIG Japan Holdings Kabushiki Kaisha | ||
Maturities of long-term debt | ||
Total | 344 | |
Long-term debt | 344 | |
AIG Japan Holdings Kabushiki Kaisha | Uncollateralized Notes/Bonds/Loans Payable | ||
Maturities of long-term debt | ||
Total | 344 | |
Thereafter | 0 | |
Long-term debt | 344 | |
AIG Japan Holdings Kabushiki Kaisha | Collateralized Loans and Mortgages Payable | ||
Maturities of long-term debt | ||
Total | 0 | |
Long-term debt | 0 | |
Other subsidiaries notes, bonds, loans and mortgages payable | ||
Maturities of long-term debt | ||
Total | 47 | |
Long-term debt | 47 | |
Other subsidiaries notes, bonds, loans and mortgages payable | Uncollateralized Notes/Bonds/Loans Payable | ||
Maturities of long-term debt | ||
Total | 1 | |
Long-term debt | 1 | |
Other subsidiaries notes, bonds, loans and mortgages payable | Collateralized Loans and Mortgages Payable | ||
Maturities of long-term debt | ||
Total | 46 | |
Long-term debt | 46 | |
Debt of consolidated investments | ||
Maturities of long-term debt | ||
Total | 9,871 | 8,404 |
Long-term debt | 9,871 | 8,404 |
Debt issued or guaranteed | ||
Maturities of long-term debt | ||
Total | 25,432 | 25,968 |
2020 | 1,499 | |
2021 | 1,874 | |
2022 | 1,561 | |
2023 | 1,731 | |
2024 | 1,137 | |
Thereafter | 17,630 | |
Long-term debt | 25,432 | 25,968 |
Uncollateralized Notes/Bonds/Loans Payable | ||
Maturities of long-term debt | ||
Total | 23,349 | 23,734 |
2020 | 1,465 | |
2021 | 1,723 | |
2022 | 1,511 | |
2023 | 1,610 | |
2024 | 998 | |
Thereafter | 16,042 | |
Long-term debt | 23,349 | 23,734 |
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | ||
Maturities of long-term debt | ||
Total | 20,467 | 20,853 |
2020 | 1,346 | |
2021 | 1,498 | |
2022 | 1,511 | |
2023 | 1,610 | |
2024 | 998 | |
Thereafter | 13,504 | |
Long-term debt | 20,467 | 20,853 |
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | ||
Maturities of long-term debt | ||
Total | 1,542 | 1,548 |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 1,542 | |
Long-term debt | 1,542 | 1,548 |
Uncollateralized Notes/Bonds/Loans Payable | AIG Japan Holdings Kabushiki Kaisha | ||
Maturities of long-term debt | ||
Total | 344 | 331 |
2020 | 119 | |
2021 | 225 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Long-term debt | 344 | 331 |
Borrowings supported by assets | ||
Maturities of long-term debt | ||
Total | 2,083 | 2,234 |
2020 | 34 | |
2021 | 151 | |
2022 | 50 | |
2023 | 121 | |
2024 | 139 | |
Thereafter | 1,588 | |
Long-term debt | 2,083 | 2,234 |
Borrowings supported by assets | Notes and bonds payable | ||
Maturities of long-term debt | ||
Total | 59 | 49 |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 59 | |
Long-term debt | 59 | 49 |
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | ||
Maturities of long-term debt | ||
Total | 21 | 21 |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 21 | |
Long-term debt | 21 | 21 |
Borrowings supported by assets | GIAs | ||
Maturities of long-term debt | ||
Total | 2,003 | 2,164 |
2020 | 34 | |
2021 | 151 | |
2022 | 50 | |
2023 | 121 | |
2024 | 139 | |
Thereafter | 1,508 | |
Long-term debt | 2,003 | 2,164 |
Debt not guaranteed | ||
Maturities of long-term debt | ||
Total | 47 | |
2020 | 37 | |
2021 | 2 | |
2022 | 1 | |
2023 | 1 | |
2024 | 1 | |
Thereafter | 5 | |
Long-term debt | 47 | |
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | ||
Maturities of long-term debt | ||
Total | 47 | 168 |
2020 | 37 | |
2021 | 2 | |
2022 | 1 | |
2023 | 1 | |
2024 | 1 | |
Thereafter | 5 | |
Long-term debt | 47 | 168 |
Debt not guaranteed | Debt of consolidated investments | ||
Maturities of long-term debt | ||
Total | 9,871 | 8,404 |
Long-term debt | $ 9,871 | $ 8,404 |
DEBT (Details - AIGLH Junior su
DEBT (Details - AIGLH Junior subordinated debentures) $ in Millions | Dec. 31, 2019USD ($) |
8.5 percent Junior subordinated debentures due July 2030 | |
Debt Instrument [Line Items] | |
Junior subordinated debentures liquidation value | $ 113 |
Interest rate (as a percent) | 8.50% |
8.125 percent Junior subordinated debentures due March 2046 | |
Debt Instrument [Line Items] | |
Junior subordinated debentures liquidation value | $ 211 |
Interest rate (as a percent) | 8.125% |
7.57 percent Junior subordinated debentures due December 2045 | |
Debt Instrument [Line Items] | |
Junior subordinated debentures liquidation value | $ 37 |
Interest rate (as a percent) | 7.57% |
DEBT (Details - Credit faciliti
DEBT (Details - Credit facilities) - 5-Year Syndicated Facility $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Schedule of Debt Instruments [Line Items] | |
Maximum borrowing capacity | $ 4,500 |
Remaining borrowing capacity | $ 4,500 |
Debt Instrument, Maturity Date | June 2022 |
Debt Instrument Effective Date | Jun. 27, 2017 |
CONTINGENCIES, COMMITMENTS AN_3
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Contingencies, Commitments and Guarantees) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | ||||
Right of use asset | $ 648 | $ 724 | ||
Lease liability | 733 | $ 823 | ||
Lease payments | $ 248 | |||
Leases, weighted average discount rate | 3.21% | |||
Leases, weighted average lease term | 4 years 10 months 24 days | |||
Rent expense | $ 232 | $ 283 | $ 269 | |
Future undiscounted cash flows under operating leases | ||||
2020 | 250 | |||
2021 | 186 | |||
2022 | 108 | |||
2023 | 84 | |||
2024 | 64 | |||
Remaining years after 2024 | 165 | |||
Total | 857 | |||
Gain on sale leaseback | 200 | |||
Future undiscounted obligations | 507 | |||
Other commitments | 7,400 | |||
Amount outstanding under standby letters of credit at end of period | $ 81 |
EQUITY (Details - Preferred Sto
EQUITY (Details - Preferred Stock) - USD ($) $ / shares in Units, $ in Millions | Dec. 26, 2019 | Dec. 16, 2019 | Sep. 30, 2019 | Sep. 16, 2019 | Jun. 28, 2019 | Jun. 17, 2019 | Mar. 29, 2019 | Mar. 14, 2019 | Dec. 26, 2018 | Sep. 28, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 22, 2017 | Sep. 29, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||||||||||||||||
Issuances (in shares) | 3,389,602 | 4,091,922 | 3,386,462 | ||||||||||||||||
Preferred stock, par value (in dollars per share) | $ 5 | $ 0 | |||||||||||||||||
Preferred stock liquidation preference | $ 500 | $ 0 | |||||||||||||||||
Issuance of preferred stock | $ 485 | $ 0 | $ 0 | ||||||||||||||||
Date dividends declared | Oct. 31, 2019 | Aug. 7, 2019 | May 6, 2019 | Feb. 13, 2019 | Oct. 31, 2018 | Aug. 2, 2018 | May 2, 2018 | Feb. 8, 2018 | Nov. 2, 2017 | Aug. 2, 2017 | May 3, 2017 | Feb. 14, 2017 | |||||||
Date dividends paid | Dec. 26, 2019 | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 26, 2018 | Sep. 28, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 22, 2017 | Sep. 29, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | |||||||
Date of record | Dec. 12, 2019 | Sep. 17, 2019 | Jun. 14, 2019 | Mar. 15, 2019 | Dec. 12, 2018 | Sep. 17, 2018 | Jun. 14, 2018 | Mar. 15, 2018 | Dec. 8, 2017 | Sep. 15, 2017 | Jun. 14, 2017 | Mar. 15, 2017 | |||||||
Series A Preferred Stock | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Issuances (in shares) | 20,000 | ||||||||||||||||||
Preferred stock, dividend rate (as a percent) | 5.85% | 5.85% | |||||||||||||||||
Preferred stock, par value (in dollars per share) | $ 5 | ||||||||||||||||||
Preferred stock liquidation preference | $ 25,000 | ||||||||||||||||||
Issuance of preferred stock | $ 485 | ||||||||||||||||||
Date dividends declared | Oct. 31, 2019 | Aug. 7, 2019 | May 21, 2019 | ||||||||||||||||
Preferred Stock Dividends Per Share Cash Paid | $ 365.625 | $ 365.625 | $ 369.6875 | ||||||||||||||||
Date dividends paid | Dec. 16, 2019 | Sep. 16, 2019 | Jun. 17, 2019 | ||||||||||||||||
Date of record | Nov. 29, 2019 | Aug. 30, 2019 | May 31, 2019 | ||||||||||||||||
Series A Preferred Stock | Rating Agency Event [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Preferred stock redemption terms | 90 days | ||||||||||||||||||
Preferred stock redemption price per share | $ 25,500 | ||||||||||||||||||
Series A Preferred Stock | Regulatory Capital Event [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Preferred stock redemption price per share | $ 25,000 | ||||||||||||||||||
Depositary Shares | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Issuances (in shares) | 20,000,000 | ||||||||||||||||||
Preferred stock liquidation preference | $ 25 | ||||||||||||||||||
Preferred Stock Dividends Per Share Cash Paid | $ 0.365625 | $ 0.365625 | $ 0.3696875 | ||||||||||||||||
Depositary Shares | Rating Agency Event [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Preferred stock redemption price per share | 25.50 | ||||||||||||||||||
Depositary Shares | Regulatory Capital Event [Member] | |||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||
Preferred stock redemption price per share | $ 25 |
EQUITY (Details - Common Stock
EQUITY (Details - Common Stock and Dividends) - USD ($) $ / shares in Units, $ in Millions | Dec. 26, 2019 | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 26, 2018 | Sep. 28, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 22, 2017 | Sep. 29, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 13, 2019 |
The following table presents a roll forward of outstanding shares: | ||||||||||||||||
Shares, beginning of year | (1,040,062,063) | |||||||||||||||
Shares, beginning of year | 1,906,671,492 | |||||||||||||||
Shares, beginning of year | 866,609,429 | 899,044,657 | 995,335,841 | |||||||||||||
Shares issued | 3,389,602 | 4,091,922 | 3,386,462 | |||||||||||||
Shares repurchased | 0 | (36,527,150) | (99,677,646) | |||||||||||||
Shares, end of period | (1,036,672,461) | (1,040,062,063) | ||||||||||||||
Shares, end of year | 1,906,671,492 | 1,906,671,492 | ||||||||||||||
Shares, end of period | 869,999,031 | 866,609,429 | 899,044,657 | |||||||||||||
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 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | ||||
Date of Shareholders of Record | Dec. 12, 2019 | Sep. 17, 2019 | Jun. 14, 2019 | Mar. 15, 2019 | Dec. 12, 2018 | Sep. 17, 2018 | Jun. 14, 2018 | Mar. 15, 2018 | Dec. 8, 2017 | Sep. 15, 2017 | Jun. 14, 2017 | Mar. 15, 2017 | ||||
Date Dividends Declared | Oct. 31, 2019 | Aug. 7, 2019 | May 6, 2019 | Feb. 13, 2019 | Oct. 31, 2018 | Aug. 2, 2018 | May 2, 2018 | Feb. 8, 2018 | Nov. 2, 2017 | Aug. 2, 2017 | May 3, 2017 | Feb. 14, 2017 | ||||
Date Dividends To Be Paid | Dec. 26, 2019 | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 26, 2018 | Sep. 28, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 22, 2017 | Sep. 29, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | ||||
Authorized amount of common stock share repurchase | $ 1,500 | |||||||||||||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 2,000 | |||||||||||||||
Aggregate repurchases of common stock | $ 0 | $ 1,739 | $ 6,275 | |||||||||||||
Total number of shares common shares repurchased | 0 | 36,527,150 | 99,677,646 | |||||||||||||
Aggregate repurchases of warrants | $ 0 | $ 11 | $ 3 | |||||||||||||
Total number of warrants repurchased | 0 | 1,000,000 | 185,000 | |||||||||||||
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 | 1,906,671,492 | |||||||||||||
Shares issued | 0 | 0 | 0 | |||||||||||||
Shares repurchased | 0 | 0 | 0 | |||||||||||||
Shares, end of year | 1,906,671,492 | 1,906,671,492 | 1,906,671,492 | |||||||||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | ||||||||||||||||
Total number of shares common shares repurchased | 0 | 0 | 0 | |||||||||||||
Treasury Stock | ||||||||||||||||
The following table presents a roll forward of outstanding shares: | ||||||||||||||||
Shares, beginning of year | (1,040,062,063) | (1,007,626,835) | (911,335,651) | |||||||||||||
Shares issued | 3,389,602 | 4,091,922 | 3,386,462 | |||||||||||||
Shares repurchased | 0 | (36,527,150) | (99,677,646) | |||||||||||||
Shares, end of period | (1,036,672,461) | (1,040,062,063) | (1,007,626,835) | |||||||||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | ||||||||||||||||
Total number of shares common shares repurchased | 0 | 36,527,150 | 99,677,646 |
EQUITY (Details - Rollforward o
EQUITY (Details - Rollforward of Accumulated other comprehensive income (loss)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance, beginning of period, net of tax | $ (1,413) | $ 5,465 | $ 3,230 |
Cumulative effect of change in accounting principle | (8) | ||
Change in unrealized appreciation (depreciation) of investments | 14,175 | (10,008) | 4,062 |
Change in deferred policy acquisition costs adjustment and other | (1,856) | 1,243 | (1,259) |
Change in future policy benefits | (4,462) | 1,711 | (1,102) |
Changes in foreign currency translation adjustments | 135 | (314) | 547 |
Change in net actuarial loss | (58) | (23) | 110 |
Change in prior service cost (credit) | (2) | (4) | 9 |
Change in deferred tax asset (liability) | (1,514) | 1,099 | (132) |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | (3) | 3 | |
Other comprehensive income (loss) | 6,415 | (6,293) | 2,235 |
Noncontrolling interests | 20 | 9 | |
Balance, end of period, net of tax | 4,982 | (1,413) | 5,465 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Cumulative effect of change in accounting principle | (576) | ||
Other comprehensive income (loss) | 6,395 | (6,302) | 2,235 |
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Other-Than-Temporary Credit Impairments Were Taken | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance, beginning of period, net of tax | (38) | 793 | 426 |
Cumulative effect of change in accounting principle | 169 | ||
Change in unrealized appreciation (depreciation) of investments | 842 | (1,320) | 394 |
Change in deferred policy acquisition costs adjustment and other | 15 | (57) | 23 |
Change in deferred tax asset (liability) | (196) | 377 | (50) |
Other comprehensive income (loss) | 661 | (1,000) | 367 |
Balance, end of period, net of tax | 623 | (38) | 793 |
Unrealized Appreciation (Depreciation) of All Other Investments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance, beginning of period, net of tax | 2,426 | 7,693 | 6,405 |
Cumulative effect of change in accounting principle | (285) | ||
Change in unrealized appreciation (depreciation) of investments | 13,333 | (8,688) | 3,668 |
Change in deferred policy acquisition costs adjustment and other | (1,871) | 1,300 | (1,282) |
Change in future policy benefits | (4,462) | 1,711 | (1,102) |
Change in deferred tax asset (liability) | (1,311) | 702 | 4 |
Other comprehensive income (loss) | 5,689 | (4,975) | 1,288 |
Noncontrolling interests | 16 | 7 | |
Balance, end of period, net of tax | 8,099 | 2,426 | 7,693 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance, beginning of period, net of tax | (2,725) | (2,090) | (2,629) |
Cumulative effect of change in accounting principle | (284) | ||
Changes in foreign currency translation adjustments | 135 | (314) | 547 |
Change in deferred tax asset (liability) | (31) | (35) | (8) |
Other comprehensive income (loss) | 104 | (349) | 539 |
Noncontrolling interests | (4) | 2 | |
Balance, end of period, net of tax | (2,625) | (2,725) | (2,090) |
Retirement Plan Liabilities Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance, beginning of period, net of tax | (1,086) | (931) | (972) |
Cumulative effect of change in accounting principle | (183) | ||
Change in net actuarial loss | (58) | (23) | 110 |
Change in prior service cost (credit) | (2) | (4) | 9 |
Change in deferred tax asset (liability) | 24 | 55 | (78) |
Other comprehensive income (loss) | (36) | 28 | 41 |
Balance, end of period, net of tax | (1,122) | (1,086) | (931) |
Fair Value of Liabilities Under Fair Value Option Attributable to Changes in Own Credit Risk | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance, beginning of period, net of tax | 10 | ||
Cumulative effect of change in accounting principle | 7 | ||
Change in deferred tax asset (liability) | 0 | 0 | 0 |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | (3) | 3 | |
Other comprehensive income (loss) | (3) | 3 | $ 0 |
Balance, end of period, net of tax | $ 7 | $ 10 |
EQUITY (Details - Other compreh
EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | $ 8,212 | $ (7,555) | $ 3,090 |
Less: Reclassification adjustments included in net income | 283 | (163) | 723 |
Total other comprehensive income (loss), before income tax expense (benefit) | 7,929 | (7,392) | 2,367 |
Less: Income tax expense (benefit) | 1,514 | (1,099) | 132 |
Other comprehensive income (loss) | 6,415 | (6,293) | 2,235 |
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Other-Than-Temporary Credit Impairments Were Taken | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 853 | (1,372) | 467 |
Less: Reclassification adjustments included in net income | (4) | 5 | 50 |
Total other comprehensive income (loss), before income tax expense (benefit) | 857 | (1,377) | 417 |
Less: Income tax expense (benefit) | 196 | (377) | 50 |
Other comprehensive income (loss) | 661 | (1,000) | 367 |
Unrealized Appreciation (Depreciation) of All Other Investments | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 7,324 | (5,811) | 2,052 |
Less: Reclassification adjustments included in net income | 324 | (134) | 768 |
Total other comprehensive income (loss), before income tax expense (benefit) | 7,000 | (5,677) | 1,284 |
Less: Income tax expense (benefit) | 1,311 | (702) | (4) |
Other comprehensive income (loss) | 5,689 | (4,975) | 1,288 |
Foreign Currency Translation Adjustments | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 135 | (314) | 547 |
Less: Reclassification adjustments included in net income | 0 | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | 135 | (314) | 547 |
Less: Income tax expense (benefit) | 31 | 35 | 8 |
Other comprehensive income (loss) | 104 | (349) | 539 |
Retirement Plan Liabilities Adjustment | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | (97) | (61) | 24 |
Less: Reclassification adjustments included in net income | (37) | (34) | (95) |
Total other comprehensive income (loss), before income tax expense (benefit) | (60) | (27) | 119 |
Less: Income tax expense (benefit) | (24) | (55) | 78 |
Other comprehensive income (loss) | (36) | 28 | 41 |
Fair Value of Liabilities Under Fair Value Option Attributable to Changes in Own Credit Risk | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | (3) | 3 | 0 |
Less: Reclassification adjustments included in net income | 0 | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | (3) | 3 | 0 |
Less: Income tax expense (benefit) | 0 | 0 | 0 |
Other comprehensive income (loss) | $ (3) | $ 3 | $ 0 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Investments | $ 806 | $ 121 | $ (1,153) | ||||||||
Deferred acquisition costs adjustment | 5,164 | 5,386 | 4,288 | ||||||||
Future policy benefits | 25,402 | 27,412 | 29,972 | ||||||||
Total | 283 | (163) | 723 | ||||||||
Income from continuing operations before income tax expense | $ 1,036 | $ 1,260 | $ 1,837 | $ 1,154 | $ (695) | $ (1,527) | $ 1,252 | $ 1,227 | 5,287 | 257 | 1,466 |
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 | 283 | (163) | 723 | ||||||||
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total | (4) | 5 | 50 | ||||||||
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Investments | (4) | 5 | 50 | ||||||||
Income from continuing operations before income tax expense | (4) | 5 | 50 | ||||||||
Unrealized appreciation (depreciation) of all other investments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total | 324 | (134) | 768 | ||||||||
Unrealized appreciation (depreciation) of all other investments | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Investments | 324 | (134) | 463 | ||||||||
Deferred acquisition costs adjustment | 0 | 0 | 305 | ||||||||
Future policy benefits | 0 | 0 | 0 | ||||||||
Income from continuing operations before income tax expense | 324 | (134) | 768 | ||||||||
Change in retirement plan liabilities adjustment | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total | (37) | (34) | (95) | ||||||||
Change in retirement plan liabilities adjustment | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total | (37) | (34) | (95) | ||||||||
Prior-Service Credit | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total | 0 | 1 | 5 | ||||||||
Actuarial Gains (Losses) | Amount Reclassified from Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total | $ (37) | $ (35) | $ (100) |
EARNINGS PER COMMON SHARE (EP_3
EARNINGS PER COMMON SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator for EPS: | |||||||||||
Income (loss) from continuing operations | $ 4,121 | $ 103 | $ (6,060) | ||||||||
Less: Net income from continuing operations attributable to noncontrolling interests | $ (60) | $ 317 | $ 281 | $ 283 | $ 62 | $ 0 | $ (6) | $ 11 | 821 | 67 | 28 |
Less: Preferred stock dividends | 22 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG common shareholders from continuing operations | 3,278 | 36 | (6,088) | ||||||||
Income (loss) from discontinued operations, net of income tax expense | 49 | 0 | (1) | 0 | (2) | (39) | 0 | (1) | 48 | (42) | 4 |
Net income (loss) attributable to AIG common shareholders | $ 922 | $ 648 | $ 1,102 | $ 654 | $ (622) | $ (1,259) | $ 937 | $ 938 | $ 3,326 | $ (6) | $ (6,084) |
Denominator for EPS: | |||||||||||
Weighted average common shares outstanding - basic | 878,210,228 | 877,009,495 | 876,382,884 | 875,383,084 | 887,508,718 | 895,237,359 | 903,215,488 | 907,951,597 | 876,750,264 | 898,405,537 | 930,561,286 |
Dilutive common shares | 12,761,682 | 11,735,705 | 0 | ||||||||
Weighted average common shares outstanding - diluted | 896,380,725 | 895,814,410 | 888,325,042 | 877,512,244 | 887,508,718 | 895,237,359 | 916,572,481 | 925,266,577 | 889,511,946 | 910,141,242 | 930,561,286 |
Basic: | |||||||||||
Income (loss) from continuing operations | $ 0.99 | $ 0.74 | $ 1.26 | $ 0.75 | $ (0.70) | $ (1.37) | $ 1.04 | $ 1.03 | $ 3.74 | $ 0.04 | $ (6.54) |
Income (loss) from discontinued operations | 0.06 | 0 | 0 | 0 | 0 | (0.04) | 0 | 0 | 0.05 | (0.05) | 0 |
Income (loss) attributable to AIG common shareholders | 3.79 | (0.01) | (6.54) | ||||||||
Diluted: | |||||||||||
Income (loss) from continuing operations | 0.97 | 0.72 | 1.24 | 0.75 | (0.70) | (1.37) | 1.02 | 1.01 | 3.69 | 0.04 | (6.54) |
Income (loss) from discontinued operations | $ 0.06 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.04) | $ 0 | $ 0 | 0.05 | (0.05) | 0 |
Income (loss) attributable to AIG common shareholders | $ 3.74 | $ (0.01) | $ (6.54) | ||||||||
Dilutive shares excluded from computation of diluted earnings per share | 22,412,682 | ||||||||||
Number of shares excluded from diluted shares outstanding because the effect would have been anti-dilutive | 20,000,000 | 19,600,000 | 1,700,000 |
STATUTORY FINANCIAL DATA AND _3
STATUTORY FINANCIAL DATA AND RESTRICTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | $ 1,100 | ||
Increase (decrease) in the previously reported amount of statutory surplus as a result of the finalization of statutory filings | (1,400) | ||
Subsidiary Dividend Restrictions | |||
Statutory capital and surplus of consolidated insurance subsidiaries companies restricted from transfer to parent | $ 44,100 | ||
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% | ||
General Insurance Companies | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | $ 2,864 | (472) | $ (1,296) |
Statutory capital and surplus | 33,663 | 33,144 | |
Aggregate minimum required statutory capital and surplus | 12,823 | 12,849 | |
General Insurance Companies | Domestic | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 1,482 | (1,030) | (978) |
Statutory capital and surplus | 17,433 | 17,435 | |
Aggregate minimum required statutory capital and surplus | 4,178 | 4,393 | |
General Insurance Companies | Foreign | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 1,382 | 558 | (318) |
Statutory capital and surplus | 16,230 | 15,709 | |
Aggregate minimum required statutory capital and surplus | 8,645 | 8,456 | |
Life and Retirement companies | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 3,666 | 118 | 1,087 |
Statutory capital and surplus | 14,491 | 11,263 | |
Aggregate minimum required statutory capital and surplus | 4,612 | 4,460 | |
Statutory surplus and net income (loss) | |||
Permitted practice | 285 | 438 | |
Life and Retirement companies | Domestic | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 310 | 671 | 1,066 |
Statutory capital and surplus | 9,227 | 9,454 | |
Aggregate minimum required statutory capital and surplus | 3,383 | 3,301 | |
Life and Retirement companies | Foreign | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 3,356 | (553) | $ 21 |
Statutory capital and surplus | 5,264 | 1,809 | |
Aggregate minimum required statutory capital and surplus | $ 1,229 | $ 1,159 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS (Details - Share based compensation expense) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SHARE-BASED COMPENSATION PLANS | |||
Share-based compensation expense - pre-tax | $ 314 | $ 337 | $ 353 |
Share-based compensation expense - after tax | 248 | 266 | 229 |
Vested stock-settled awards issued to retirement eligible employees | 82 | $ 104 | $ 196 |
Excess tax benefits due to share settlements | $ 27 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS (Details - Employee Plans, Share-settled Awards - assumptions used to estimate the fair value of PSUs) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)itemshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ | $ 314 | $ 337 | $ 353 |
Performance share units | |||
Assumptions used to estimate the fair value of PSUs based on AIG's TSR | |||
Expected dividend yield (as a percent) | 2.37% | ||
Expected volatility (as a percent) | 17.58% | ||
Risk-free interest rate (as a percent) | 2.00% | ||
Deferred stock units (DSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted under the plans | 49,706 | 39,092 | 32,067 |
Compensation expense | $ | $ 2.6 | $ 2.1 | $ 2 |
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 | 31,537,171 | ||
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 | 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, from date of grant | 2 years | ||
AIG 2013 Long Term Incentive Plan | Maximum | 2017 to 2019 | |||
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 | Minimum | 2017 to 2019 | |||
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 | 200.00% |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS (Details - Share-settled Awards - Outstanding share-settled awards) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Maximum | |||
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 | 3 years 3 months | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incurred/recognized incremental compensation expense | $ 12 | $ 48 | $ 71 |
Change in number of shares | |||
Unvested, beginning of year (in shares) | 1,634,610 | 595,250 | 0 |
Granted (in shares) | 399,779 | 1,385,929 | 869,241 |
Vested (in shares) | (774,350) | (342,481) | (273,991) |
Forfeited (in shares) | (28,854) | (4,088) | 0 |
Unvested, end of year (in shares) | 1,231,185 | 1,634,610 | 595,250 |
Change in Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of year (in dollars per share) | $ 56.11 | $ 62.93 | $ 0 |
Granted (in dollars per share) | 52.40 | 54.07 | 63.02 |
Vested (in dollars per share) | 57.32 | 59.68 | 63.21 |
Forfeited (in dollars per share) | 55.23 | 60.31 | 0 |
Unvested, end of year (in dollars per share) | $ 54.17 | $ 56.11 | $ 62.93 |
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||
Expected Period | 3 years | ||
RSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Incurred/recognized incremental compensation expense | $ 142 | ||
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 | 3 years | ||
2015 LTI | PSUs | |||
Change in number of shares | |||
Unvested, beginning of year (in shares) | 272,332 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | (250,708) | ||
Forfeited (in shares) | (21,624) | ||
Unvested, end of year (in shares) | 0 | 272,332 | |
Change in Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of year (in dollars per share) | $ 60.51 | ||
Granted (in dollars per share) | 0 | ||
Vested (in dollars per share) | 60.51 | ||
Forfeited (in dollars per share) | 60.40 | ||
Unvested, end of year (in dollars per share) | $ 0 | $ 60.51 | |
2016 LTI | PSUs | |||
Change in number of shares | |||
Unvested, beginning of year (in shares) | 640,660 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | 456,396 | ||
Forfeited (in shares) | (873,692) | ||
Unvested, end of year (in shares) | 223,364 | 640,660 | |
Change in Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of year (in dollars per share) | $ 61.55 | ||
Granted (in dollars per share) | 0 | ||
Vested (in dollars per share) | 53.85 | ||
Forfeited (in dollars per share) | 50.88 | ||
Unvested, end of year (in dollars per share) | $ 62.14 | $ 61.55 | |
2017 LTI | PSUs | |||
Change in number of shares | |||
Unvested, beginning of year (in shares) | 1,579,995 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | (540,580) | ||
Forfeited (in shares) | (1,039,415) | ||
Unvested, end of year (in shares) | 0 | 1,579,995 | |
Change in Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of year (in dollars per share) | $ 62.32 | ||
Granted (in dollars per share) | 0 | ||
Vested (in dollars per share) | 64.22 | ||
Forfeited (in dollars per share) | 64.97 | ||
Unvested, end of year (in dollars per share) | $ 0 | $ 62.32 | |
2018 LTI | PSUs | |||
Change in number of shares | |||
Unvested, beginning of year (in shares) | 3,322,028 | ||
Granted (in shares) | 5,499 | ||
Vested (in shares) | (529,576) | ||
Forfeited (in shares) | (140,957) | ||
Unvested, end of year (in shares) | 2,656,994 | 3,322,028 | |
Change in Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of year (in dollars per share) | $ 55.32 | ||
Granted (in dollars per share) | 47.57 | ||
Vested (in dollars per share) | 55.72 | ||
Forfeited (in dollars per share) | 55.47 | ||
Unvested, end of year (in dollars per share) | $ 55.21 | $ 55.32 | |
2019 LTI | PSUs | |||
Change in number of shares | |||
Unvested, beginning of year (in shares) | 0 | ||
Granted (in shares) | 6,185,729 | ||
Vested (in shares) | (1,445,746) | ||
Forfeited (in shares) | (216,085) | ||
Unvested, end of year (in shares) | 4,523,898 | 0 | |
Change in Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of year (in dollars per share) | $ 0 | ||
Granted (in dollars per share) | 44.81 | ||
Vested (in dollars per share) | 44.39 | ||
Forfeited (in dollars per share) | 44.28 | ||
Unvested, end of year (in dollars per share) | $ 44.98 | $ 0 | |
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 | $ 203 | ||
Weighted-Average Period | 11 months 15 days | ||
Expected Period | 2 years |
SHARE-BASED COMPENSATION PLAN_5
SHARE-BASED COMPENSATION PLANS (Details - Roll forward of stock option activity) - USD ($) $ / shares in Units, $ in Millions | Dec. 26, 2019 | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 26, 2018 | Sep. 28, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 22, 2017 | Sep. 29, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares granted under the plans | 3,235,290 | ||||||||||||||
Weighted average assumptions used to estimate the fair value | |||||||||||||||
Dividend paid (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | |||
Stock options activity | |||||||||||||||
Outstanding at beginning of year (in shares) | 5,205,799 | ||||||||||||||
Granted (in shares) | 3,235,290 | ||||||||||||||
Exercised (in shares) | (36,194) | ||||||||||||||
Forfeited or expired (in shares) | (39,004) | ||||||||||||||
Outstanding at end of year (in shares) | 8,365,891 | 5,205,799 | |||||||||||||
Units, Exercisable, end of year (in shares) | 1,330,226 | ||||||||||||||
Stock options, Weighted Average Exercise Price | |||||||||||||||
Outstanding at beginning of year (in dollars per share) | $ 58.99 | ||||||||||||||
Granted (in dollars per share) | 44.89 | ||||||||||||||
Exercised (in dollars per share) | 47.61 | ||||||||||||||
Forfeited or expired (in dollars per share) | 44.28 | ||||||||||||||
Outstanding at end of year (in dollars per share) | 53.66 | $ 58.99 | |||||||||||||
Excercisable, end of year (in dollars per share) | $ 57.28 | ||||||||||||||
Stock options, Weighted Average Remaining Contractual Life | |||||||||||||||
Weighted Average Remaining Contractual Life, Outstanding End of year | 7 years 7 months 24 days | 7 years 4 months 17 days | |||||||||||||
Weighted Average Remaining Contractual Life, Exercisable, End of year | 3 years 6 months 10 days | ||||||||||||||
Aggregate intrinsic value, Outstanding, end of year | $ 22 | ||||||||||||||
Aggregate intrinsic value, Excerciable, end of year | 1 | ||||||||||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||||||||||||||
Compensation expense | $ 314 | $ 337 | $ 353 | ||||||||||||
Minimum [Member] | |||||||||||||||
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 | 10 months 17 days | ||||||||||||||
Maximum [Member] | |||||||||||||||
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 | 3 years 3 months | ||||||||||||||
Deferred stock units (DSUs) | |||||||||||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||||||||||||||
Compensation expense | $ 2.6 | $ 2.1 | $ 2 | ||||||||||||
Stock Options | |||||||||||||||
Weighted average assumptions used to estimate the fair value | |||||||||||||||
Expected annual dividend yield (as a percent) | 2.86% | 2.32% | 2.03% | ||||||||||||
Expected volatility (as a percent) | 23.17% | 23.29% | 20.96% | ||||||||||||
Risk-free interest rate (as a percent) | 2.47% | 2.83% | 1.94% | ||||||||||||
Expected term | 6 years 4 months 17 days | 4 years 6 months | |||||||||||||
Trading Period on Which Historical Valuation is Based by Bloomberg Professional Service | 24 months | ||||||||||||||
Stock options, Weighted Average Remaining Contractual Life | |||||||||||||||
Weighted average grant-date fair value of stock options granted | $ 10.01 | $ 11.08 | $ 10.54 | ||||||||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||||||||||||||
Compensation expense | $ 28.1 | ||||||||||||||
Unrecognized Compensation Cost | $ 22 | ||||||||||||||
Expected Period | 2 years | ||||||||||||||
Stock Options | Minimum [Member] | |||||||||||||||
Weighted average assumptions used to estimate the fair value | |||||||||||||||
Expected term | 4 years 6 months | ||||||||||||||
Contractual term of the option | P7Y | ||||||||||||||
Stock Options | Maximum [Member] | |||||||||||||||
Weighted average assumptions used to estimate the fair value | |||||||||||||||
Expected term | 6 years 5 months 19 days | ||||||||||||||
Contractual term of the option | P10Y |
SHARE-BASED COMPENSATION PLAN_6
SHARE-BASED 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in SARs (based on target amounts) as well as the related expenses | |||
Restricted stock expense | $ 41.6 | ||
Total unrecognized compensation costs | $ 35 | ||
Maximum | |||
Change in SARs (based on target amounts) as well as the related expenses | |||
Unrecongized compensation costs, period for recognition | 3 years 3 months | ||
Minimum | |||
Change in SARs (based on target amounts) as well as the related expenses | |||
Unrecongized compensation costs, period for recognition | 10 months 17 days | ||
RSUs | |||
Change in SARs (based on target amounts) as well as the related expenses | |||
Unvested, beginning of year (in shares) | 1,634,610 | 595,250 | 0 |
Granted (in shares) | 399,779 | 1,385,929 | 869,241 |
Vested (in shares) | (774,350) | (342,481) | (273,991) |
Forfeited (in shares) | (28,854) | (4,088) | 0 |
Unvested, end of year (in shares) | 1,231,185 | 1,634,610 | 595,250 |
Unvested, beginning of year (in shares) | 1,634,610 | 595,250 | 0 |
Granted (in shares) | 399,779 | 1,385,929 | 869,241 |
Vested (in shares) | (774,350) | (342,481) | (273,991) |
Forfeited (in shares) | (28,854) | (4,088) | 0 |
Unvested, end of year (in shares) | 1,231,185 | 1,634,610 | 595,250 |
RSUs | Maximum | |||
Change in SARs (based on target amounts) as well as the related expenses | |||
Unrecongized compensation costs, period for recognition | 3 years | ||
RSUs | Minimum | |||
Change in SARs (based on target amounts) as well as the related expenses | |||
Unrecongized compensation costs, period for recognition | 1 year |
SHARE BASED COMPENSATION PLANS
SHARE BASED COMPENSATION PLANS (Details - Summary of outstanding share-settled RSU grants) - RSUs - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in number of shares | |||
Unvested, beginning of year (in shares) | 1,634,610 | 595,250 | 0 |
Granted (in shares) | 399,779 | 1,385,929 | 869,241 |
Vested (in shares) | (774,350) | (342,481) | (273,991) |
Forfeited (in shares) | (28,854) | (4,088) | 0 |
Unvested, end of year (in shares) | 1,231,185 | 1,634,610 | 595,250 |
Change in Weighted Average Grant-Date Fair Value | |||
Unvested, beginning of year (in dollars per share) | $ 56.11 | $ 62.93 | $ 0 |
Granted (in dollars per share) | 52.40 | 54.07 | 63.02 |
Vested (in dollars per share) | 57.32 | 59.68 | 63.21 |
Forfeited (in dollars per share) | 55.23 | 60.31 | 0 |
Unvested, end of year (in dollars per share) | $ 54.17 | $ 56.11 | $ 62.93 |
EMPLOYEE BENEFITS (Details - Pe
EMPLOYEE BENEFITS (Details - Pension and Postretirement Plans) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pensions | U.S. | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | $ 4,553 | $ 5,091 | |||
Service cost | 5 | 5 | $ 11 | ||
Interest cost | 176 | 162 | 166 | ||
Actuarial (gain) loss | 536 | (383) | |||
Benefits paid: | |||||
AIG assets | (18) | (16) | |||
Plan assets | (279) | (306) | |||
Plan amendment | 0 | 0 | |||
Curtailment | 0 | 0 | |||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Other | (1) | 0 | |||
Projected benefit obligation, end of year | $ 4,972 | 4,553 | 5,091 | ||
(Decrease) in discount rate | 1.06% | ||||
Change in plan assets: | |||||
Fair value of plan assets, beginning of year | $ 3,840 | 4,350 | |||
Actual return on plan assets, net of expenses | 744 | (204) | |||
AIG contributions | 178 | 16 | |||
AIG assets | (18) | (16) | |||
Plan assets | (279) | (306) | |||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Other | 0 | 0 | |||
Fair value of plan assets, end of year | 4,465 | 3,840 | 4,350 | ||
Funded status, end of year | $ (507) | $ (713) | |||
Amounts recognized in the consolidated balance sheet: | |||||
Assets | 0 | 0 | |||
Liabilities | (507) | (713) | |||
Total amounts recognized | (507) | (713) | |||
Pre-tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Net gain (loss) | (1,436) | (1,450) | |||
Prior service (cost) credit | 0 | 0 | |||
Total amounts recognized | (1,436) | (1,450) | |||
Projected benefit obligation | 4,972 | 5,091 | 5,091 | 4,972 | 4,553 |
Pensions | U.S. | Nonqualified Plan | Unfunded Plan | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 250 | ||||
Benefits paid: | |||||
Projected benefit obligation, end of year | 261 | 250 | |||
Pre-tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Projected benefit obligation | 250 | 250 | 261 | 250 | |
Pensions | Non U.S. Plans | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 1,138 | 1,202 | |||
Service cost | 21 | 22 | 29 | ||
Interest cost | 15 | 16 | 16 | ||
Actuarial (gain) loss | 91 | (28) | |||
Benefits paid: | |||||
AIG assets | (8) | (9) | |||
Plan assets | (33) | (32) | |||
Plan amendment | 0 | 3 | |||
Curtailment | (2) | 0 | |||
Settlements | (67) | (5) | |||
Foreign exchange effect | 18 | (31) | |||
Other | 1 | 0 | |||
Projected benefit obligation, end of year | 1,174 | 1,138 | 1,202 | ||
Change in plan assets: | |||||
Fair value of plan assets, beginning of year | 861 | 875 | |||
Actual return on plan assets, net of expenses | 64 | 6 | |||
AIG contributions | 63 | 51 | |||
AIG assets | (8) | (9) | |||
Plan assets | (33) | (32) | |||
Settlements | (67) | (5) | |||
Foreign exchange effect | 19 | (25) | |||
Other | 0 | 0 | |||
Fair value of plan assets, end of year | 899 | 861 | 875 | ||
Funded status, end of year | (275) | (277) | |||
Amounts recognized in the consolidated balance sheet: | |||||
Assets | 65 | 72 | |||
Liabilities | (340) | (349) | |||
Total amounts recognized | (275) | (277) | |||
Pre-tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Net gain (loss) | (195) | (149) | |||
Prior service (cost) credit | (22) | (23) | |||
Total amounts recognized | (217) | (172) | |||
Projected benefit obligation | 1,138 | 1,138 | 1,202 | 1,174 | 1,138 |
Pensions | Non U.S. Plans | Nonqualified Plan | Unfunded Plan | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 201 | ||||
Benefits paid: | |||||
Projected benefit obligation, end of year | 225 | 201 | |||
Pre-tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Projected benefit obligation | 201 | 201 | 225 | 201 | |
Postretirement Plans | U.S. | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 172 | 190 | |||
Service cost | 1 | 1 | 2 | ||
Interest cost | 6 | 6 | 6 | ||
Actuarial (gain) loss | 15 | (10) | |||
Benefits paid: | |||||
AIG assets | (13) | (15) | |||
Plan assets | 0 | 0 | |||
Plan amendment | 0 | 0 | |||
Curtailment | 0 | 0 | |||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Other | 0 | 0 | |||
Projected benefit obligation, end of year | 181 | 172 | 190 | ||
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 | 13 | 15 | |||
AIG assets | (13) | (15) | |||
Plan assets | 0 | 0 | |||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Other | 0 | 0 | |||
Fair value of plan assets, end of year | 0 | 0 | 0 | ||
Funded status, end of year | (181) | (172) | |||
Amounts recognized in the consolidated balance sheet: | |||||
Assets | 0 | 0 | |||
Liabilities | (181) | (172) | |||
Total amounts recognized | (181) | (172) | |||
Pre-tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Net gain (loss) | 10 | 26 | |||
Prior service (cost) credit | 0 | 0 | |||
Total amounts recognized | 10 | 26 | |||
Projected benefit obligation | 181 | 190 | 190 | 181 | 172 |
Postretirement Plans | Non U.S. Plans | |||||
Change in projected benefit obligation: | |||||
Benefit obligation, beginning of year | 50 | 63 | |||
Service cost | 1 | 1 | 3 | ||
Interest cost | 2 | 2 | 3 | ||
Actuarial (gain) loss | 8 | (14) | |||
Benefits paid: | |||||
AIG assets | (1) | (1) | |||
Plan assets | 0 | 0 | |||
Plan amendment | 0 | 0 | |||
Curtailment | 0 | 0 | |||
Settlements | 0 | 0 | |||
Foreign exchange effect | 1 | (1) | |||
Other | 0 | 0 | |||
Projected benefit obligation, end of year | 61 | 50 | 63 | ||
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 | |||
AIG assets | (1) | (1) | |||
Plan assets | 0 | 0 | |||
Settlements | 0 | 0 | |||
Foreign exchange effect | 0 | 0 | |||
Other | 0 | 0 | |||
Fair value of plan assets, end of year | 0 | 0 | 0 | ||
Funded status, end of year | (61) | (50) | |||
Amounts recognized in the consolidated balance sheet: | |||||
Assets | 0 | 0 | |||
Liabilities | (61) | (50) | |||
Total amounts recognized | (61) | (50) | |||
Pre-tax amounts recognized in Accumulated other comprehensive income (loss): | |||||
Net gain (loss) | (6) | 3 | |||
Prior service (cost) credit | 1 | 3 | |||
Total amounts recognized | (5) | 6 | |||
Projected benefit obligation | $ 50 | $ 50 | $ 63 | $ 61 | $ 50 |
EMPLOYEE BENEFITS (Details - Ac
EMPLOYEE BENEFITS (Details - Accumulated benefit obligations for U.S. and non-U.S. pension benefit plans) - Pensions - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 4,972 | $ 4,553 |
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 4,972 | 4,553 |
Fair value of plan assets | 4,465 | 3,840 |
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets | ||
Accumulated benefit obligation | 4,972 | 4,553 |
Fair value of plan assets | 4,465 | 3,840 |
Non U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 1,159 | 1,125 |
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 1,005 | 994 |
Fair value of plan assets | 605 | 594 |
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets | ||
Accumulated benefit obligation | 931 | 932 |
Fair value of plan assets | $ 605 | $ 594 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pensions | |||
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 | $ 19 | ||
Increase in expense due to decrease of 100 basis point in expected long-term rate of return | 51 | ||
Decrease in expense due to increase of 100 basis point in discount rate | 8 | ||
Decrease in expense due to increase of 100 basis point in expected long-term rate of return | 51 | ||
Pensions | U.S. | |||
Components of net periodic benefit cost: | |||
Service cost | 5 | $ 5 | $ 11 |
Interest cost | 176 | 162 | 166 |
Expected return on assets | (229) | (283) | (266) |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Amortization of net (gain) loss | 35 | 28 | 26 |
Net periodic benefit cost (credit) | (13) | (88) | (63) |
Curtailment gain | 0 | 0 | 0 |
Settlement (credit) charges | 0 | 0 | 60 |
Net benefit cost (credit) | (13) | (88) | (3) |
Total recognized in Accumulated other comprehensive income (loss) | 14 | (77) | 32 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 27 | 11 | 35 |
Pensions | Non U.S. Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 21 | 22 | 29 |
Interest cost | 15 | 16 | 16 |
Expected return on assets | (21) | (25) | (24) |
Amortization of prior service cost (credit) | 2 | 2 | 0 |
Amortization of net (gain) loss | 5 | 7 | 12 |
Net periodic benefit cost (credit) | 22 | 22 | 33 |
Curtailment gain | 0 | 0 | (6) |
Settlement (credit) charges | (2) | 0 | 1 |
Net benefit cost (credit) | 20 | 22 | 28 |
Total recognized in Accumulated other comprehensive income (loss) | (45) | 20 | 87 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (65) | (2) | 59 |
Postretirement Plans | U.S. | |||
Components of net periodic benefit cost: | |||
Service cost | 1 | 1 | 2 |
Interest cost | 6 | 6 | 6 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | (1) | (1) |
Amortization of net (gain) loss | (1) | 0 | (1) |
Net periodic benefit cost (credit) | 6 | 6 | 6 |
Curtailment gain | 0 | 0 | 0 |
Settlement (credit) charges | 0 | 0 | 0 |
Net benefit cost (credit) | 6 | 6 | 6 |
Total recognized in Accumulated other comprehensive income (loss) | (17) | 9 | (2) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (23) | 3 | (8) |
Postretirement Plans | Non U.S. Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 1 | 1 | 3 |
Interest cost | 2 | 2 | 3 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (2) | (2) | (1) |
Amortization of net (gain) loss | 0 | 1 | 1 |
Net periodic benefit cost (credit) | 1 | 2 | 6 |
Curtailment gain | 0 | 0 | (2) |
Settlement (credit) charges | 0 | 0 | 0 |
Net benefit cost (credit) | 1 | 2 | 4 |
Total recognized in Accumulated other comprehensive income (loss) | (10) | 12 | 9 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ (11) | $ 10 | $ 5 |
EMPLOYEE BENEFITS (Details - We
EMPLOYEE BENEFITS (Details - Weighted average assumptions used to determine the benefit obligations) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. | |||
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Expected return on assets (as a percent) | 6.20% | 6.75% | |
Non U.S. Plans | |||
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Expected return on assets (as a percent) | 2.51% | 2.78% | |
Pension | U.S. | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 3.16% | 4.22% | |
Interest crediting rate | 2.19% | 3.34% | |
Assumed health care cost trend rates | |||
Ultimate rate to which cost increase is assumed to decline (as a percent) | 4.50% | 4.50% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 4.22% | 3.61% | 4.15% |
Interest crediting rate | 3.34% | 2.88% | 2.50% |
Expected return on assets (as a percent) | 6.20% | 6.75% | 7.00% |
Pension | U.S. | Medical (before age 65) | |||
Assumed health care cost trend rates | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 5.74% | 5.93% | |
Year in which the ultimate trend rate is reached: | 2038 | 2038 | |
Pension | U.S. | Medical (age 65 and older) | |||
Assumed health care cost trend rates | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 5.00% | 5.00% | |
Year in which the ultimate trend rate is reached: | 2038 | 2038 | |
Pension | Non U.S. Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 1.09% | 1.71% | |
Interest crediting rate | 0.44% | 0.74% | |
Rate of compensation increase (as a percent) | 2.22% | 2.27% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 1.71% | 1.60% | 1.50% |
Interest crediting rate | 0.74% | 0.70% | 0.69% |
Rate of compensation increase (as a percent) | 2.27% | 2.27% | 2.50% |
Expected return on assets (as a percent) | 2.51% | 2.78% | 2.92% |
Pension | AIG Japan pension plans | |||
Discount Rate Methodology | |||
Projected benefit obligation to total projected benefit obligations (as a percent) | 53.00% | 52.00% | |
Weighted average discount rate (as a percent) | 0.42% | 0.72% | |
Postretirement Plans | U.S. | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 3.14% | 4.17% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 4.17% | 3.53% | 4.01% |
Postretirement Plans | Non U.S. Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 3.18% | 4.12% | |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 4.12% | 3.59% | 3.95% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% | 3.38% |
EMPLOYEE BENEFITS (Details - As
EMPLOYEE BENEFITS (Details - Assumed health care cost trend rates) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
U.S. | ||
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) | 6.20% | 6.75% |
U.S. | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 26.00% | |
Actual allocation (as a percent) | 25.00% | 25.00% |
U.S. | Fixed maturity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 60.00% | |
Actual allocation (as a percent) | 59.00% | 47.00% |
U.S. | Other Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 14.00% | |
Actual allocation (as a percent) | 16.00% | 28.00% |
Non U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 100.00% | |
Actual allocation (as a percent) | 100.00% | 100.00% |
Expected weighted average long-term rate of return plan assets (as a percent) | 2.51% | 2.78% |
Non U.S. Plans | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 29.00% | |
Actual allocation (as a percent) | 23.00% | 35.00% |
Non U.S. Plans | Fixed maturity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 51.00% | |
Actual allocation (as a percent) | 43.00% | 37.00% |
Non U.S. Plans | Other Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 19.00% | |
Actual allocation (as a percent) | 24.00% | 17.00% |
Non U.S. Plans | Cash & cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 1.00% | |
Actual allocation (as a percent) | 10.00% | 11.00% |
Pensions | AIG Japan pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation (as a percent) | 61.00% | 59.00% |
Expected weighted average long-term rate of return plan assets (as a percent) | 1.82% | 2.22% |
EMPLOYEE BENEFITS (Details - _2
EMPLOYEE BENEFITS (Details - Assets Measured at Fair Value) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Investment Types | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,294 | $ 1,138 | |
Non U.S. Plans | Levels 1, 2 and 3 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non U.S. Plans | Level 1 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non U.S. Plans | Level 2 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Non U.S. Plans | Level 3 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,465 | 3,840 | $ 4,350 |
Pensions | U.S. | Levels 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,171 | 2,702 | |
Pensions | U.S. | Levels 1, 2 and 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 133 | 501 | |
Pensions | U.S. | Levels 1, 2 and 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 278 | 240 | |
Pensions | U.S. | Levels 1, 2 and 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 186 | 137 | |
Pensions | U.S. | Levels 1, 2 and 3 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,209 | 1,476 | |
Pensions | U.S. | Levels 1, 2 and 3 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 203 | 157 | |
Pensions | U.S. | Levels 1, 2 and 3 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 106 | 96 | |
Pensions | U.S. | Levels 1, 2 and 3 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 48 | 36 | |
Pensions | U.S. | Levels 1, 2 and 3 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Levels 1, 2 and 3 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (17) | 27 | |
Pensions | U.S. | Levels 1, 2 and 3 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 14 | |
Pensions | U.S. | Levels 1, 2 and 3 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14 | 18 | |
Pensions | U.S. | Levels 1, 2 and 3 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | U.S. | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 555 | 905 | |
Pensions | U.S. | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 133 | 501 | |
Pensions | U.S. | Level 1 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 278 | 240 | |
Pensions | U.S. | Level 1 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 161 | 137 | |
Pensions | U.S. | Level 1 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (17) | 27 | |
Pensions | U.S. | Level 1 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | U.S. | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,596 | 1,770 | |
Pensions | U.S. | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 2 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 2 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25 | 0 | |
Pensions | U.S. | Level 2 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,200 | 1,463 | |
Pensions | U.S. | Level 2 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 203 | 157 | |
Pensions | U.S. | Level 2 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 106 | 96 | |
Pensions | U.S. | Level 2 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 48 | 36 | |
Pensions | U.S. | Level 2 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 2 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 2 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 2 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14 | 18 | |
Pensions | U.S. | Level 2 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | U.S. | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20 | 27 | 27 |
Pensions | U.S. | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 13 | |
Pensions | U.S. | Level 3 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 14 | 15 |
Pensions | U.S. | Level 3 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | Non U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 899 | 861 | 875 |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 899 | 861 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 90 | 97 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 205 | 302 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 158 | 130 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 229 | 185 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 160 | 145 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 57 | ||
Pensions | Non U.S. Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 246 | 315 | |
Pensions | Non U.S. Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 90 | 97 | |
Pensions | Non U.S. Plans | Level 1 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 156 | 218 | |
Pensions | Non U.S. Plans | Level 1 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. 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 | |
Pensions | Non U.S. Plans | Level 1 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | Non U.S. Plans | Level 1 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | Non U.S. Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 493 | 401 | |
Pensions | Non U.S. Plans | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 49 | 84 | |
Pensions | Non U.S. Plans | Level 2 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 158 | 130 | |
Pensions | Non U.S. Plans | Level 2 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 229 | 185 | |
Pensions | Non U.S. Plans | Level 2 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 2 | |
Pensions | Non U.S. Plans | Level 2 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | Non U.S. Plans | Level 2 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 57 | ||
Pensions | Non U.S. Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 160 | 145 | 113 |
Pensions | Non U.S. Plans | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. 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 | |
Pensions | Non U.S. Plans | Level 3 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | Non U.S. Plans | Level 3 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 160 | $ 145 | $ 113 |
Pensions | Non U.S. Plans | Level 3 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 |
EMPLOYEE BENEFITS (Details - Ch
EMPLOYEE BENEFITS (Details - Changes in Level 3 fair value measurements) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in Level 3 fair value measurements | ||
Issuances | $ 0 | $ 0 |
Pensions | U.S. | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 3,840,000,000 | 4,350,000,000 |
Fair value of plan assets, end of year | 4,465,000,000 | 3,840,000,000 |
Pensions | U.S. | Level 3 | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 27,000,000 | 27,000,000 |
Net Realized and Unrealized Gains (Losses) | 0 | (4,000,000) |
Purchases | 2,000,000 | 8,000,000 |
Sales | (5,000,000) | (5,000,000) |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 1,000,000 |
Transfers Out | (4,000,000) | 0 |
Fair value of plan assets, end of year | 20,000,000 | 27,000,000 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 5,000,000 | 0 |
Pensions | U.S. | Level 3 | Fixed maturity securities: U.S. investment grade | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 13,000,000 | 12,000,000 |
Net Realized and Unrealized Gains (Losses) | 3,000,000 | (2,000,000) |
Purchases | 0 | 5,000,000 |
Sales | (3,000,000) | (3,000,000) |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 1,000,000 |
Transfers Out | (4,000,000) | 0 |
Fair value of plan assets, end of year | 9,000,000 | 13,000,000 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 3,000,000 | 1,000,000 |
Pensions | U.S. | Level 3 | Direct private equity | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 14,000,000 | 15,000,000 |
Net Realized and Unrealized Gains (Losses) | (3,000,000) | (2,000,000) |
Purchases | 2,000,000 | 3,000,000 |
Sales | (2,000,000) | (2,000,000) |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 11,000,000 | 14,000,000 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 2,000,000 | (1,000,000) |
Pensions | U.S. | Level 3 | Mortgage-backed, asset-backed and collateralized | ||
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 |
Pensions | U.S. | 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 |
Pensions | Non U.S. Plans | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 861,000,000 | 875,000,000 |
Fair value of plan assets, end of year | 899,000,000 | 861,000,000 |
Pensions | Non U.S. Plans | Level 3 | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 145,000,000 | 113,000,000 |
Net Realized and Unrealized Gains (Losses) | 16,000,000 | 31,000,000 |
Purchases | (1,000,000) | 1,000,000 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 160,000,000 | 145,000,000 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | 0 |
Pensions | Non U.S. Plans | Level 3 | Direct private equity | ||
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 |
Pensions | Non U.S. Plans | Level 3 | Mortgage-backed, asset-backed and collateralized | ||
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 |
Pensions | Non U.S. Plans | Level 3 | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 145,000,000 | 113,000,000 |
Net Realized and Unrealized Gains (Losses) | 16,000,000 | 31,000,000 |
Purchases | (1,000,000) | 1,000,000 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 160,000,000 | 145,000,000 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | $ 0 | $ 0 |
EMPLOYEE BENEFITS (Details - Ex
EMPLOYEE BENEFITS (Details - Expected Cash Flows) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DEFINED CONTRIBUTION PLANS | |||
Percentage of employer's contribution on employee's matching contribution | 100.00% | ||
Change in 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% | ||
Pre-tax expenses associated with these plans | $ 195,000,000 | $ 210,000,000 | $ 209,000,000 |
Pensions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated employer contribution | 65,000,000 | ||
Pensions | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum required cash contributions | 0 | ||
AIG contributions | 178,000,000 | 16,000,000 | |
Expected future benefit payments, net of participants' contributions | |||
2020 | 330,000,000 | ||
2021 | 326,000,000 | ||
2022 | 334,000,000 | ||
2023 | 320,000,000 | ||
2024 | 320,000,000 | ||
2025-2029 | 1,473,000,000 | ||
Pre tax expenses associated with contribution plans | 178,000,000 | 16,000,000 | |
Pensions | Non U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
AIG contributions | 63,000,000 | 51,000,000 | |
Expected future benefit payments, net of participants' contributions | |||
2020 | 47,000,000 | ||
2021 | 41,000,000 | ||
2022 | 42,000,000 | ||
2023 | 43,000,000 | ||
2024 | 49,000,000 | ||
2025-2029 | 252,000,000 | ||
Pre tax expenses associated with contribution plans | 63,000,000 | 51,000,000 | |
Postretirement Plans | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
AIG contributions | 13,000,000 | 15,000,000 | |
Expected future benefit payments, net of participants' contributions | |||
2020 | 13,000,000 | ||
2021 | 13,000,000 | ||
2022 | 13,000,000 | ||
2023 | 13,000,000 | ||
2024 | 12,000,000 | ||
2025-2029 | 50,000,000 | ||
Pre tax expenses associated with contribution plans | 13,000,000 | 15,000,000 | |
Postretirement Plans | Non U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
AIG contributions | 1,000,000 | 1,000,000 | |
Expected future benefit payments, net of participants' contributions | |||
2020 | 1,000,000 | ||
2021 | 1,000,000 | ||
2022 | 2,000,000 | ||
2023 | 2,000,000 | ||
2024 | 2,000,000 | ||
2025-2029 | 10,000,000 | ||
Pre tax expenses associated with contribution plans | $ 1,000,000 | $ 1,000,000 |
INCOME TAXES (Details - EFFECTI
INCOME TAXES (Details - EFFECTIVE TAX RATE) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income (loss) from continuing operations before income tax expense (benefit) | |||||||||||
U.S. | $ 3,825 | $ (12) | $ 1,940 | ||||||||
Foreign | 1,462 | 269 | (474) | ||||||||
Income from continuing operations before income tax expense | $ 1,036 | $ 1,260 | $ 1,837 | $ 1,154 | $ (695) | $ (1,527) | $ 1,252 | $ 1,227 | 5,287 | 257 | 1,466 |
Foreign: | |||||||||||
Current | 267 | 202 | 209 | ||||||||
Deferred | (12) | (7) | 25 | ||||||||
U.S.: | |||||||||||
Current | 278 | 134 | 427 | ||||||||
Deferred | 633 | (175) | 6,865 | ||||||||
Income tax expense | 1,166 | 154 | 7,526 | ||||||||
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 | 5,336 | 255 | 1,476 | ||||||||
Amounts attributable to discontinued operations | 49 | (2) | 10 | ||||||||
Income from continuing operations before income tax expense | 1,036 | $ 1,260 | $ 1,837 | $ 1,154 | (695) | $ (1,527) | $ 1,252 | $ 1,227 | 5,287 | 257 | 1,466 |
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 | 1,120 | 54 | 517 | ||||||||
Consolidated total amounts | 1,167 | 194 | 7,532 | ||||||||
Amounts attributable to discontinued operations | 1 | 40 | 6 | ||||||||
Income tax expense | 1,166 | 154 | 7,526 | ||||||||
Adjustments: | |||||||||||
Tax exempt interest | (25) | (37) | (111) | ||||||||
Uncertain tax positions | 258 | 176 | 660 | ||||||||
Reclassifications from accumulated other comprehensive income | (113) | (72) | (184) | ||||||||
Tax exempt income | 65 | 75 | 201 | ||||||||
Dispositions of Subsidiaries | 21 | 0 | 17 | ||||||||
Tax Attribute Restoration | 0 | 0 | 0 | ||||||||
Non-controlling Interest | (5) | (1) | (7) | ||||||||
Non-deductible transfer pricing charges | 15 | 29 | 35 | ||||||||
Dividends received deduction | (40) | (38) | (90) | ||||||||
Effect of foreign operations | 69 | 44 | 69 | ||||||||
Share-based compensation payments excess tax effect | 27 | (13) | (40) | ||||||||
State income taxes | 13 | 10 | (9) | ||||||||
Impact of Tax Act | 0 | 62 | 6,687 | ||||||||
Global intangible low-taxed income | 13 | 21 | 0 | ||||||||
Other | (134) | (102) | (58) | ||||||||
Effect of discontinued operations | (8) | 40 | 3 | ||||||||
Valuation allowance | |||||||||||
Continuing operations | $ (44) | $ 21 | $ 43 | ||||||||
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) | 21.00% | 21.00% | 35.00% | ||||||||
Consolidated total amounts (as a percent) | 21.90% | 76.00% | 510.30% | ||||||||
Amounts attributable to discontinued operations (as a percent) | 2.00% | 60.00% | |||||||||
Adjustments: | |||||||||||
Amounts attributable to continuing operations (as a percent) | 22.10% | 59.90% | 513.40% | ||||||||
Tax exempt interest (as a percent) | (0.50%) | (14.50%) | (7.50%) | ||||||||
Uncertain Tax Positions (as a percent) | 4.80% | 69.00% | 44.70% | ||||||||
Reclassification from accumulated other comprehensive income (as a percent) | (2.10%) | (28.20%) | (12.50%) | ||||||||
Dispositions of Subsidiaries (as a percent) | 0.40% | 0.00% | 1.20% | ||||||||
Tax Attribute Restoration (as a percent) | 0.00% | 0.00% | 0.00% | ||||||||
Non-controlling Interest (as a percent) | (0.10%) | (0.40%) | (0.50%) | ||||||||
Non-deductible transfer pricing charges (as a percent) | 0.30% | 11.40% | 2.40% | ||||||||
Dividends received deduction (as a percent) | (0.70%) | (14.80%) | (6.10%) | ||||||||
Effect of foreign operations (as a percent) | 1.30% | 17.30% | 4.70% | ||||||||
Share-based compensation payments excess tax deduction (as a percent) | 0.50% | (5.10%) | (2.70%) | ||||||||
State income taxes (as a percent) | 0.20% | 3.90% | (0.60%) | ||||||||
Impact of Tax Act (as a percent) | 0.00% | 24.30% | 453.00% | ||||||||
Global intangible low-taxed income (as a percent) | 0.20% | 8.20% | 0.00% | ||||||||
Other (as a percent) | (2.50%) | (40.00%) | (3.90%) | ||||||||
Effect of discontinued operations (as a percent) | (0.10%) | 15.70% | 0.20% | ||||||||
Income Tax (as a percent): | |||||||||||
Continuing operations (as a percent) | (0.80%) | 8.20% | 2.90% | ||||||||
Accounting for Uncertainty in Income Taxes: | |||||||||||
Charges related to accrual of income tax interest | 96 | 83 | $ 96 | $ 83 | $ 301 | ||||||
Net charge related to accrual of IRS interest, tax expense reported in uncertain tax positions | 207 | 189 | 207 | 189 | 245 | ||||||
Net charge related to accrual of IRS interest, tax benefit reported in other | (111) | (106) | (111) | (106) | 56 | ||||||
Tax charges and related interest from increase in uncertain tax positions from local and state | 37 | ||||||||||
Cumulative effect of change in accounting principle | (8) | ||||||||||
Effect of foreign operations and global intangible low-taxes income | 82 | ||||||||||
Unrecognized deferred tax liabilities | $ 110 | $ 110 | |||||||||
Maximum statutory rate to offset income by non-operating loss | 35.00% | 35.00% | |||||||||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||||||||
Accounting for Uncertainty in Income Taxes: | |||||||||||
Cumulative effect of change in accounting principle | (576) | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Member] | Accounting Standards Update - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | |||||||||||
Accounting for Uncertainty in Income Taxes: | |||||||||||
Cumulative effect of change in accounting principle | 248 | 248 | |||||||||
Retained Earnings [Member] | |||||||||||
Accounting for Uncertainty in Income Taxes: | |||||||||||
Cumulative effect of change in accounting principle | $ 568 | ||||||||||
Retained Earnings [Member] | Accounting Standards Update - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | |||||||||||
Accounting for Uncertainty in Income Taxes: | |||||||||||
Cumulative effect of change in accounting principle | $ (248) | (248) | |||||||||
Foreign and state | |||||||||||
Accounting for Uncertainty in Income Taxes: | |||||||||||
Deferred tax asset valuation allowance recognized | $ (44) | $ 21 | |||||||||
Life insurance companies | |||||||||||
Accounting for Uncertainty in Income Taxes: | |||||||||||
Deferred tax asset valuation allowance allocated to other comprehensive income | $ 290 |
INCOME TAXES (Details - Compone
INCOME TAXES (Details - Components of the net deferred tax assets (liabilities) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Losses and tax credit carryforwards | $ 10,541 | $ 11,792 |
Basis differences on investments | 2,673 | 2,038 |
Life policy reserves | 1,766 | 2,200 |
Accruals not currently deductible, and other | 743 | 608 |
Investments in foreign subsidiaries | 148 | 173 |
Loss reserve discount | 471 | 272 |
Loan loss and other reserves | 58 | 0 |
Unearned premium reserve reduction | 382 | 504 |
Fixed assets and intangible assets | 963 | 531 |
Other | 319 | 962 |
Employee benefits | 617 | 604 |
Total deferred tax assets | 18,681 | 19,684 |
Deferred tax liabilities: | ||
Deferred policy acquisition costs | (2,200) | (2,342) |
Unrealized gains related to available for sale debt securities | (2,123) | (490) |
Loan loss and other reserves | 0 | (20) |
Total deferred tax liabilities | (4,323) | (2,852) |
Net deferred tax assets before valuation allowance | 14,358 | 16,832 |
Valuation allowance | (1,427) | (1,780) |
Net deferred tax assets (liabilities) | $ 12,931 | $ 15,052 |
INCOME TAXES (Details - U.S. co
INCOME TAXES (Details - U.S. consolidated income tax group tax losses and credits carryforwards) $ in Millions | Dec. 31, 2019USD ($) |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, gross | |
Net operating loss carryforwards | $ 32,143 |
Capital Loss Carryforwards | 0 |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 6,750 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 2,249 |
Other carryforwards | 0 |
Unrecognized tax benefit | 2,100 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 8,999 |
Tax Year 2020 | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 0 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 738 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 738 |
Tax Year 2021 | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 0 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 116 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 116 |
Tax Year 2022 | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 0 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 683 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 683 |
Tax Year 2023 | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 0 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 711 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 711 |
Tax Year 2024 | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 0 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 0 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 0 |
Tax Year 2025 | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 0 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 0 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 0 |
Unlimited Carryforwards And Tax Years 2026 And After | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 6,750 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 0 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | $ 6,750 |
INCOME TAXES (Details - Assessm
INCOME TAXES (Details - Assessment of Deferred Tax Asset (liabilities) Valuation Allowance) - USD ($) $ in Millions | Feb. 26, 2009 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets, Liabilities [Line Items] | ||||
Continuing operations | $ (44) | $ 21 | $ 43 | |
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||
Valuation allowance | (1,427) | (1,780) | ||
Net deferred tax assets (liabilities) | 12,931 | 15,052 | ||
Net foreign, state & local deferred tax assets | 14,358 | 16,832 | ||
Net U.S, foreign, state & local deferred tax assets | 13,146 | 15,221 | ||
Net foreign, state & local deferred tax liabilities | (4,323) | (2,852) | ||
Deferred tax asset - U.S. consolidated income tax group | ||||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||||
Net U.S. consolidated return group deferred tax assets | 14,622 | 15,479 | ||
Net deferred tax assets (liabilities) in Accumulated other comprehensive income | (2,055) | (510) | ||
Valuation allowance | (90) | (405) | ||
Net deferred tax assets (liabilities) | 12,477 | 14,564 | ||
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 | (1,337) | (1,374) | ||
Net deferred tax assets (liabilities) | 454 | 488 | ||
Net foreign, state & local deferred tax assets | 2,006 | 2,031 | ||
Net foreign, state & local deferred tax liabilities | (215) | (169) | ||
Net deferred tax assets (liabilities) | $ 669 | $ 657 |
INCOME TAXES (Details - Account
INCOME TAXES (Details - Accounting For Uncertainty in Income Taxes) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Rollforward of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | |||
Gross unrecognized tax benefits, beginning of year | $ 4,709 | $ 4,707 | $ 4,530 |
Increases in tax positions for prior years | 51 | 14 | 210 |
Decreases in tax positions for prior years | (1) | (6) | (33) |
Increases in tax positions for current year | 4 | 0 | 0 |
Settlements | (1) | (6) | 0 |
Gross unrecognized tax benefits, end of year | 4,762 | 4,709 | 4,707 |
Unrecognized tax benefits, if recognized would not affect the effective tax rate | 43 | 38 | 28 |
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate | 4,700 | 4,700 | 4,700 |
Unrecognized tax benefits, interest and penalties accrued | 2,400 | 2,200 | 2,000 |
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties | (236) | $ (190) | $ (776) |
Decrease in Unrecognized Tax Benefits is Reasonably Possible in the next twelve months | $ 3,600 |
INCOME TAXES (Details - Tax Yea
INCOME TAXES (Details - Tax Years that remain open in Income Taxes) | 12 Months Ended |
Dec. 31, 2019 | |
UNITED STATES [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2000 |
UNITED STATES [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2018 |
Australia [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2015 |
Australia [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2018 |
FRANCE [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2017 |
FRANCE [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2019 |
JAPAN [Member} | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2013 |
JAPAN [Member} | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2018 |
KOREA [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2014 |
KOREA [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2018 |
SINGAPORE [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2015 |
SINGAPORE [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2018 |
United Kingdom | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2018 |
United Kingdom | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2019 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details - Consolidated Statements of Income (Loss)) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Total revenues | $ 11,815,000,000 | $ 12,914,000,000 | $ 12,561,000,000 | $ 12,456,000,000 | $ 12,560,000,000 | $ 11,486,000,000 | $ 11,631,000,000 | $ 11,712,000,000 | $ 49,746,000,000 | $ 47,389,000,000 | $ 49,520,000,000 |
Income from continuing operations before income tax expense | 1,036,000,000 | 1,260,000,000 | 1,837,000,000 | 1,154,000,000 | (695,000,000) | (1,527,000,000) | 1,252,000,000 | 1,227,000,000 | 5,287,000,000 | 257,000,000 | 1,466,000,000 |
Income (loss) from discontinued operations, net of income tax expense | 49,000,000 | 0 | (1,000,000) | 0 | (2,000,000) | (39,000,000) | 0 | (1,000,000) | 48,000,000 | (42,000,000) | 4,000,000 |
Net income | 869,000,000 | 973,000,000 | 1,390,000,000 | 937,000,000 | (560,000,000) | (1,259,000,000) | 931,000,000 | 949,000,000 | 4,169,000,000 | 61,000,000 | (6,056,000,000) |
Net income (loss) from continuing operations attributable to noncontrolling interests | (60,000,000) | 317,000,000 | 281,000,000 | 283,000,000 | 62,000,000 | 0 | (6,000,000) | 11,000,000 | 821,000,000 | 67,000,000 | 28,000,000 |
Net income (loss) attributable to AIG | 929,000,000 | 656,000,000 | 1,109,000,000 | 654,000,000 | (622,000,000) | (1,259,000,000) | 937,000,000 | 938,000,000 | 3,348,000,000 | (6,000,000) | (6,084,000,000) |
Net income (loss) attributable to AIG common shareholders | $ 922,000,000 | $ 648,000,000 | $ 1,102,000,000 | $ 654,000,000 | $ (622,000,000) | $ (1,259,000,000) | $ 937,000,000 | $ 938,000,000 | $ 3,326,000,000 | $ (6,000,000) | $ (6,084,000,000) |
Basic: | |||||||||||
Income (loss) from continuing operations | $ 0.99 | $ 0.74 | $ 1.26 | $ 0.75 | $ (0.70) | $ (1.37) | $ 1.04 | $ 1.03 | $ 3.74 | $ 0.04 | $ (6.54) |
Income from discontinued operations | 0.06 | 0 | 0 | 0 | 0 | (0.04) | 0 | 0 | 0.05 | (0.05) | 0 |
Diluted: | |||||||||||
Income (loss) from continuing operations | 0.97 | 0.72 | 1.24 | 0.75 | (0.70) | (1.37) | 1.02 | 1.01 | 3.69 | 0.04 | (6.54) |
Income (loss) from discontinued operations | $ 0.06 | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.04) | $ 0 | $ 0 | $ 0.05 | $ (0.05) | $ 0 |
Weighted average shares outstanding: | |||||||||||
Basic | 878,210,228 | 877,009,495 | 876,382,884 | 875,383,084 | 887,508,718 | 895,237,359 | 903,215,488 | 907,951,597 | 876,750,264 | 898,405,537 | 930,561,286 |
Diluted | 896,380,725 | 895,814,410 | 888,325,042 | 877,512,244 | 887,508,718 | 895,237,359 | 916,572,481 | 925,266,577 | 889,511,946 | 910,141,242 | 930,561,286 |
Noteworthy quarterly items income (expense): | |||||||||||
Total prior year (favourable) unfavorable development | $ (119,000,000) | $ (74,000,000) | $ (132,000,000) | $ (15,000,000) | $ 546,000,000 | $ 949,000,000 | $ (26,000,000) | $ (40,000,000) | |||
Restructuring and other costs | $ 44,000,000 | $ 67,000,000 | $ 60,000,000 | $ 47,000,000 | 136,000,000 | 35,000,000 | 200,000,000 | 24,000,000 | |||
Adjustment | |||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Income from continuing operations before income tax expense | (132,000,000) | ||||||||||
Net income (loss) attributable to AIG | $ (87,000,000) | $ (40,000,000) | $ 0 | $ 0 |
INFORMATION PROVIDED IN CONNE_3
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Balance Sheets) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||||
Short-term investments | $ 13,230 | $ 9,674 | ||
Other investments | 324,385 | 304,535 | ||
Total investments | 337,615 | 314,209 | ||
Cash | 2,856 | 2,873 | $ 2,362 | |
Loans to subsidiaries | 0 | 0 | ||
Investment in consolidated subsidiaries | 0 | 0 | ||
Other assets, including deferred income taxes | 184,593 | 174,902 | ||
Total assets | 525,064 | 491,984 | ||
Liabilities: | ||||
Insurance liabilities | 302,406 | 293,652 | ||
Long-term debt and debt of consolidated investment entities | 35,350 | 34,540 | ||
Other liabilities, including intercompany balances | 119,881 | 106,483 | ||
Loans from subsidiaries | 0 | 0 | ||
Total liabilities | 457,637 | 434,675 | ||
Total AIG shareholders' equity | 65,675 | 56,361 | ||
Non-redeemable noncontrolling interests | 1,752 | 948 | ||
Total equity | 67,427 | 57,309 | 65,708 | $ 76,858 |
Total liabilities and equity | 525,064 | 491,984 | ||
AIG (As Guarantor) | ||||
Assets: | ||||
Short-term investments | 3,329 | 1,141 | ||
Other investments | 4,804 | 3,377 | ||
Total investments | 8,133 | 4,518 | ||
Cash | 2 | 2 | 3 | |
Loans to subsidiaries | 35,352 | 34,963 | ||
Investment in consolidated subsidiaries | 39,921 | 33,300 | ||
Other assets, including deferred income taxes | 14,391 | 15,389 | ||
Total assets | 97,799 | 88,172 | ||
Liabilities: | ||||
Insurance liabilities | 0 | 0 | ||
Long-term debt and debt of consolidated investment entities | 22,030 | 22,422 | ||
Other liabilities, including intercompany balances | 9,379 | 8,774 | ||
Loans from subsidiaries | 715 | 615 | ||
Total liabilities | 32,124 | 31,811 | ||
Total AIG shareholders' equity | 65,675 | 56,361 | ||
Non-redeemable noncontrolling interests | 0 | 0 | ||
Total equity | 65,675 | 56,361 | ||
Total liabilities and equity | 97,799 | 88,172 | ||
Validus Holdings, Ltd | ||||
Assets: | ||||
Short-term investments | 0 | 2 | ||
Other investments | 0 | 0 | ||
Total investments | 0 | 2 | ||
Cash | 8 | 9 | 0 | |
Loans to subsidiaries | 0 | 0 | ||
Investment in consolidated subsidiaries | 3,646 | 4,029 | ||
Other assets, including deferred income taxes | 1,793 | 1,798 | ||
Total assets | 5,447 | 5,838 | ||
Restricted cash | 0 | |||
Liabilities: | ||||
Insurance liabilities | 0 | 0 | ||
Long-term debt and debt of consolidated investment entities | 353 | 359 | ||
Other liabilities, including intercompany balances | 10 | 228 | ||
Loans from subsidiaries | 0 | 0 | ||
Total liabilities | 363 | 587 | ||
Total AIG shareholders' equity | 5,084 | 5,251 | ||
Non-redeemable noncontrolling interests | 0 | 0 | ||
Total equity | 5,084 | 5,251 | ||
Total liabilities and equity | 5,447 | 5,838 | ||
AIGLH | ||||
Assets: | ||||
Short-term investments | 0 | 0 | ||
Other investments | 0 | 0 | ||
Total investments | 0 | 0 | ||
Cash | 9 | 9 | 20 | |
Loans to subsidiaries | 0 | 0 | ||
Investment in consolidated subsidiaries | 30,216 | 25,058 | ||
Other assets, including deferred income taxes | 17 | 124 | ||
Total assets | 30,242 | 25,191 | ||
Liabilities: | ||||
Insurance liabilities | 0 | 0 | ||
Long-term debt and debt of consolidated investment entities | 643 | 643 | ||
Other liabilities, including intercompany balances | 42 | 144 | ||
Loans from subsidiaries | 0 | 0 | ||
Total liabilities | 685 | 787 | ||
Total AIG shareholders' equity | 29,557 | 24,404 | ||
Non-redeemable noncontrolling interests | 0 | 0 | ||
Total equity | 29,557 | 24,404 | ||
Total liabilities and equity | 30,242 | 25,191 | ||
AIGLH | Scenario, Previously Reported [Member] | ||||
Assets: | ||||
Investment in consolidated subsidiaries | 26,300 | |||
Liabilities: | ||||
Total AIG shareholders' equity | 25,700 | |||
Total equity | 24,400 | |||
Other Subsidiaries | ||||
Assets: | ||||
Short-term investments | 12,496 | 10,329 | ||
Other investments | 319,622 | 301,158 | ||
Total investments | 332,118 | 311,487 | ||
Cash | 2,837 | 2,853 | 2,339 | |
Loans to subsidiaries | 715 | 615 | ||
Investment in consolidated subsidiaries | 0 | 0 | ||
Other assets, including deferred income taxes | 170,642 | 159,430 | ||
Total assets | 506,312 | 474,385 | ||
Liabilities: | ||||
Insurance liabilities | 302,406 | 293,652 | ||
Long-term debt and debt of consolidated investment entities | 12,324 | 11,116 | ||
Other liabilities, including intercompany balances | 115,313 | 100,974 | ||
Loans from subsidiaries | 35,353 | 34,963 | ||
Total liabilities | 465,396 | 440,705 | ||
Total AIG shareholders' equity | 39,164 | 32,732 | ||
Non-redeemable noncontrolling interests | 1,752 | 948 | ||
Total equity | 40,916 | 33,680 | ||
Total liabilities and equity | 506,312 | 474,385 | ||
Other assets | ||||
Assets: | ||||
Restricted cash | 243 | 343 | 317 | |
Other assets | AIG (As Guarantor) | ||||
Assets: | ||||
Restricted cash | 1 | 1 | 1 | |
Other assets | Validus Holdings, Ltd | ||||
Assets: | ||||
Restricted cash | 0 | 0 | 0 | |
Other assets | AIGLH | ||||
Assets: | ||||
Restricted cash | 0 | 0 | 0 | |
Other assets | Other Subsidiaries | ||||
Assets: | ||||
Restricted cash | 242 | 342 | 316 | |
Short-term investments | ||||
Assets: | ||||
Restricted cash | 188 | 142 | 58 | |
Short-term investments | AIG (As Guarantor) | ||||
Assets: | ||||
Restricted cash | 102 | 124 | 4 | |
Short-term investments | Validus Holdings, Ltd | ||||
Assets: | ||||
Restricted cash | 0 | 0 | ||
Short-term investments | AIGLH | ||||
Assets: | ||||
Restricted cash | 0 | 0 | 0 | |
Short-term investments | Other Subsidiaries | ||||
Assets: | ||||
Restricted cash | 86 | 18 | 54 | |
Reclassification and Eliminations | ||||
Assets: | ||||
Short-term investments | (2,595) | (1,798) | ||
Other investments | (41) | 0 | ||
Total investments | (2,636) | (1,798) | ||
Cash | 0 | 0 | 0 | |
Loans to subsidiaries | (36,067) | (35,578) | ||
Investment in consolidated subsidiaries | (73,783) | (62,387) | ||
Other assets, including deferred income taxes | (2,250) | (1,839) | ||
Total assets | (114,736) | (101,602) | ||
Liabilities: | ||||
Insurance liabilities | 0 | 0 | ||
Long-term debt and debt of consolidated investment entities | 0 | 0 | ||
Other liabilities, including intercompany balances | (4,863) | (3,637) | ||
Loans from subsidiaries | (36,068) | (35,578) | ||
Total liabilities | (40,931) | (39,215) | ||
Total AIG shareholders' equity | (73,805) | (62,387) | ||
Non-redeemable noncontrolling interests | 0 | 0 | ||
Total equity | (73,805) | (62,387) | ||
Total liabilities and equity | (114,736) | (101,602) | ||
Reclassification and Eliminations | Scenario, Previously Reported [Member] | ||||
Assets: | ||||
Investment in consolidated subsidiaries | (63,700) | |||
Liabilities: | ||||
Total AIG shareholders' equity | (63,700) | |||
Reclassification and Eliminations | Other assets | ||||
Assets: | ||||
Restricted cash | 0 | 0 | 0 | |
Reclassification and Eliminations | Short-term investments | ||||
Assets: | ||||
Restricted cash | $ 0 | $ 0 | $ 0 |
INFORMATION PROVIDED IN CONNE_4
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | $ 0 | $ 0 | $ 0 | ||||||||
Other income | 49,746 | 47,389 | 49,520 | ||||||||
Total revenues | $ 11,815 | $ 12,914 | $ 12,561 | $ 12,456 | $ 12,560 | $ 11,486 | $ 11,631 | $ 11,712 | 49,746 | 47,389 | 49,520 |
Expenses: | |||||||||||
Interest expense | 1,417 | 1,309 | 1,168 | ||||||||
Other interest expense | 1,417 | 1,309 | |||||||||
Losses on extinguishment of debt | 32 | 7 | (5) | ||||||||
Other expenses | 43,010 | 45,816 | 46,891 | ||||||||
Total benefits, losses and expenses | 44,459 | 47,132 | 48,054 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 5,287 | 257 | 1,466 | ||||||||
Income tax expense (benefit) | 1,166 | 154 | 7,526 | ||||||||
Income (loss) from continuing operations | 4,121 | 103 | (6,060) | ||||||||
Income (loss) from discontinued operations, net of income taxes | 49 | 0 | (1) | 0 | (2) | (39) | 0 | (1) | 48 | (42) | 4 |
Net income (loss) | 869 | 973 | 1,390 | 937 | (560) | (1,259) | 931 | 949 | 4,169 | 61 | (6,056) |
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | (60) | 317 | 281 | 283 | 62 | 0 | (6) | 11 | 821 | 67 | 28 |
Net income (loss) attributable to AIG | $ 929 | $ 656 | $ 1,109 | $ 654 | $ (622) | $ (1,259) | $ 937 | $ 938 | 3,348 | (6) | (6,084) |
AIG (As Guarantor) | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 3,863 | (580) | (149) | ||||||||
Other income | 1,156 | 938 | 891 | ||||||||
Total revenues | 5,019 | 358 | 742 | ||||||||
Expenses: | |||||||||||
Interest expense | 985 | 954 | 949 | ||||||||
Losses on extinguishment of debt | 0 | 0 | 2 | ||||||||
Other expenses | 729 | 803 | 952 | ||||||||
Total benefits, losses and expenses | 1,714 | 1,757 | 1,903 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 3,305 | (1,399) | (1,161) | ||||||||
Income tax expense (benefit) | (45) | (1,433) | 4,922 | ||||||||
Income (loss) from continuing operations | 3,350 | 34 | (6,083) | ||||||||
Income (loss) from discontinued operations, net of income taxes | (2) | (40) | (1) | ||||||||
Net income (loss) | 3,348 | (6) | (6,084) | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | 3,348 | (6) | (6,084) | ||||||||
Validus Holdings, Ltd | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 303 | (240) | 0 | ||||||||
Other income | 9 | 23 | 0 | ||||||||
Total revenues | 312 | (217) | 0 | ||||||||
Expenses: | |||||||||||
Interest expense | 17 | 0 | |||||||||
Other interest expense | 18 | ||||||||||
Losses on extinguishment of debt | 0 | 0 | 0 | ||||||||
Other expenses | 18 | 27 | 0 | ||||||||
Total benefits, losses and expenses | 35 | 45 | 0 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 277 | (262) | 0 | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Income (loss) from continuing operations | 277 | (262) | 0 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income (loss) | 277 | (262) | 0 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | 277 | (262) | 0 | ||||||||
AIGLH | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 325 | 3,359 | 1,328 | ||||||||
Other income | 0 | 1 | 0 | ||||||||
Total revenues | 325 | 3,360 | 1,328 | ||||||||
Expenses: | |||||||||||
Interest expense | 50 | 50 | 50 | ||||||||
Losses on extinguishment of debt | 0 | 0 | 0 | ||||||||
Other expenses | 3 | 3 | 2 | ||||||||
Total benefits, losses and expenses | 53 | 53 | 52 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 272 | 3,307 | 1,276 | ||||||||
Income tax expense (benefit) | (6) | 39 | (3) | ||||||||
Income (loss) from continuing operations | 278 | 3,268 | 1,279 | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income (loss) | 278 | 3,268 | 1,279 | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | 278 | 3,268 | 1,279 | ||||||||
AIGLH | Scenario, Previously Reported [Member] | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 2,800 | 1,900 | |||||||||
Expenses: | |||||||||||
Net income (loss) | 2,800 | 1,900 | |||||||||
Other Subsidiaries | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
Other income | 48,751 | 46,506 | 48,802 | ||||||||
Total revenues | 48,751 | 46,506 | 48,802 | ||||||||
Expenses: | |||||||||||
Interest expense | 380 | 302 | 176 | ||||||||
Losses on extinguishment of debt | 32 | 7 | (7) | ||||||||
Other expenses | 42,415 | 45,048 | 46,116 | ||||||||
Total benefits, losses and expenses | 42,827 | 45,357 | 46,285 | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | 5,924 | 1,149 | 2,517 | ||||||||
Income tax expense (benefit) | 1,217 | 1,548 | 2,607 | ||||||||
Income (loss) from continuing operations | 4,707 | (399) | (90) | ||||||||
Income (loss) from discontinued operations, net of income taxes | 50 | (2) | 5 | ||||||||
Net income (loss) | 4,757 | (401) | (85) | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 821 | 67 | 28 | ||||||||
Net income (loss) attributable to AIG | 3,936 | (468) | (113) | ||||||||
Reclassification and Eliminations | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | (4,491) | (2,539) | (1,179) | ||||||||
Other income | (170) | (79) | (173) | ||||||||
Total revenues | (4,661) | (2,618) | (1,352) | ||||||||
Expenses: | |||||||||||
Interest expense | (15) | (15) | (7) | ||||||||
Losses on extinguishment of debt | 0 | 0 | 0 | ||||||||
Other expenses | (155) | (65) | (179) | ||||||||
Total benefits, losses and expenses | (170) | (80) | (186) | ||||||||
Income (loss) from continuing operations before income tax expense (benefit) | (4,491) | (2,538) | (1,166) | ||||||||
Income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Income (loss) from continuing operations | (4,491) | (2,538) | (1,166) | ||||||||
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | ||||||||
Net income (loss) | (4,491) | (2,538) | (1,166) | ||||||||
Less: | |||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to AIG | $ (4,491) | (2,538) | (1,166) | ||||||||
Reclassification and Eliminations | Scenario, Previously Reported [Member] | |||||||||||
Revenues: | |||||||||||
Equity in earnings of consolidated subsidiaries | (2,000) | (1,800) | |||||||||
Expenses: | |||||||||||
Net income (loss) | $ (2,000) | $ (1,800) |
INFORMATION PROVIDED IN CONNE_5
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ 869 | $ 973 | $ 1,390 | $ 937 | $ (560) | $ (1,259) | $ 931 | $ 949 | $ 4,169 | $ 61 | $ (6,056) |
Other comprehensive income (loss) | 6,415 | (6,293) | 2,235 | ||||||||
Comprehensive income (loss) | 10,584 | (6,232) | (3,821) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 841 | 76 | 28 | ||||||||
Comprehensive income (loss) attributable to AIG | 9,743 | (6,308) | (3,849) | ||||||||
AIG (As Guarantor) | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 3,348 | (6) | (6,084) | ||||||||
Other comprehensive income (loss) | 6,395 | (6,302) | 2,235 | ||||||||
Comprehensive income (loss) | 9,743 | (6,308) | (3,849) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | 9,743 | (6,308) | (3,849) | ||||||||
Validus Holdings, Ltd | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 277 | (262) | 0 | ||||||||
Other comprehensive income (loss) | 1 | 0 | 0 | ||||||||
Comprehensive income (loss) | 278 | (262) | 0 | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | 278 | (262) | 0 | ||||||||
AIGLH | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 278 | 3,268 | 1,279 | ||||||||
Other comprehensive income (loss) | 6,209 | (4,555) | 1,844 | ||||||||
Comprehensive income (loss) | 6,487 | (1,287) | 3,123 | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | 6,487 | (1,287) | 3,123 | ||||||||
AIGLH | Scenario, Previously Reported [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 2,800 | 1,900 | |||||||||
Other comprehensive income (loss) | 2,500 | 7,800 | |||||||||
Other Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 4,757 | (401) | (85) | ||||||||
Other comprehensive income (loss) | 6,370 | (6,810) | 2,021 | ||||||||
Comprehensive income (loss) | 11,127 | (7,211) | 1,936 | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 841 | 76 | 28 | ||||||||
Comprehensive income (loss) attributable to AIG | 10,286 | (7,287) | 1,908 | ||||||||
Other Subsidiaries | Scenario, Previously Reported [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Other comprehensive income (loss) | 12,300 | 17,800 | |||||||||
Reclassification and Eliminations | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | (4,491) | (2,538) | (1,166) | ||||||||
Other comprehensive income (loss) | (12,560) | 11,374 | (3,865) | ||||||||
Comprehensive income (loss) | (17,051) | 8,836 | (5,031) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to AIG | $ (17,051) | 8,836 | (5,031) | ||||||||
Reclassification and Eliminations | Scenario, Previously Reported [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | (2,000) | (1,800) | |||||||||
Other comprehensive income (loss) | $ (14,800) | $ (25,700) |
INFORMATION PROVIDED IN CONNE_6
INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details - Condensed Consolidating Statements of Cash Flows) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | $ (928) | $ 61 | $ (7,818) | |||
Cash flows from investing activities: | ||||||
Sales of investments | 65,562 | 62,312 | 76,540 | |||
Sale of divested businesses, net | 2 | 10 | 792 | |||
Purchase of investments | (68,909) | (58,552) | (63,246) | |||
Loans to subsidiaries - net | 0 | 0 | 0 | |||
Contributions from (to) subsidiaries - net | 0 | 0 | 0 | |||
Acquisition of businesses, net of cash and restricted cash acquired | 0 | (5,717) | 0 | |||
Net change in short-term investments | (3,633) | 1,524 | 2,098 | |||
Other, net | 1,503 | 200 | (2,143) | |||
Net cash provided by (used in) investing activities | (5,475) | (223) | 14,041 | |||
Cash flows from financing activities: | ||||||
Issuance of long-term debt and debt of consolidated investment entities | 3,881 | 4,734 | 3,356 | |||
Repayments of long-term debt and debt of consolidated investment entities | (3,202) | (3,672) | (3,698) | |||
Issuance of preferred stock | 485 | 0 | 0 | |||
Purchase of common stock | 0 | (1,739) | (6,275) | |||
Intercompany loans - net | 0 | 0 | 0 | |||
Dividends paid on preferred stock | (22) | 0 | 0 | |||
Dividends paid on common stock | (1,114) | (1,138) | (1,172) | |||
Other, net | 6,351 | 2,609 | 2,092 | |||
Net cash provided by (used in) financing activities | 6,379 | 794 | (5,697) | |||
Effect of exchange rate changes on cash and restricted cash | 16 | (11) | (29) | |||
Change in cash and restricted cash | (8) | 621 | 497 | |||
Cash and restricted cash at beginning of year | 3,358 | 2,737 | 2,107 | |||
Change in cash of businesses held for sale | (63) | 0 | 133 | |||
Cash and restricted cash at end of year | 3,287 | 3,358 | 2,737 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Cash | $ 2,856 | $ 2,873 | $ 2,362 | |||
Total cash and restricted cash shown in the Condensed Consolidated Cash Flows | 3,358 | 3,358 | 2,737 | 3,287 | 3,358 | 2,737 |
Interest: | ||||||
Third party | (1,326) | (1,312) | (1,282) | |||
Intercompany | 0 | 0 | 0 | |||
Taxes: | ||||||
Income tax authorities | (252) | (154) | (544) | |||
Intercompany | 0 | 0 | 0 | |||
AIG (As Guarantor) | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | 3,484 | 1,256 | 36 | |||
Cash flows from investing activities: | ||||||
Sales of investments | 2,313 | 5,587 | 5,821 | |||
Sale of divested businesses, net | 0 | 0 | 40 | |||
Purchase of investments | (2,957) | (1,980) | (2,465) | |||
Loans to subsidiaries - net | 513 | 868 | 199 | |||
Contributions from (to) subsidiaries - net | (237) | 1 | 2,446 | |||
Acquisition of businesses, net of cash and restricted cash acquired | 0 | (5,475) | 0 | |||
Net change in short-term investments | (2,170) | 1,533 | 1,994 | |||
Other, net | 67 | (73) | (183) | |||
Net cash provided by (used in) investing activities | (2,471) | 461 | 7,852 | |||
Cash flows from financing activities: | ||||||
Issuance of long-term debt and debt of consolidated investment entities | 595 | 2,470 | 1,505 | |||
Repayments of long-term debt and debt of consolidated investment entities | (1,006) | (1,493) | (1,724) | |||
Issuance of preferred stock | 485 | 0 | 0 | |||
Purchase of common stock | 0 | (1,739) | (6,275) | |||
Intercompany loans - net | 93 | 90 | (63) | |||
Dividends paid on preferred stock | (22) | 0 | 0 | |||
Dividends paid on common stock | (1,114) | (1,138) | (1,172) | |||
Other, net | (66) | 212 | (154) | |||
Net cash provided by (used in) financing activities | (1,035) | (1,598) | (7,883) | |||
Effect of exchange rate changes on cash and restricted cash | 0 | 0 | 0 | |||
Change in cash and restricted cash | (22) | 119 | 5 | |||
Cash and restricted cash at beginning of year | 127 | 8 | 3 | |||
Change in cash of businesses held for sale | 0 | 0 | ||||
Cash and restricted cash at end of year | 105 | 127 | 8 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Cash | 2 | 2 | 3 | |||
Total cash and restricted cash shown in the Condensed Consolidated Cash Flows | 105 | 127 | 3 | 105 | 127 | 8 |
Interest: | ||||||
Third party | (941) | (914) | (948) | |||
Intercompany | (3) | 1 | 0 | |||
Taxes: | ||||||
Income tax authorities | (11) | (32) | (329) | |||
Intercompany | 1,179 | 895 | 614 | |||
Non-cash financing and investing activities: | ||||||
Return of capital | 15 | 2,706 | 26 | |||
Dividends received in the form of securities | 702 | 745 | 735 | |||
Capital contributions | 15 | 2,369 | 259 | |||
Validus Holdings, Ltd | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | 187 | 656 | 0 | |||
Cash flows from investing activities: | ||||||
Sales of investments | 2 | 13 | 0 | |||
Sale of divested businesses, net | 0 | 0 | 0 | |||
Purchase of investments | 0 | 0 | 0 | |||
Loans to subsidiaries - net | 0 | 0 | 0 | |||
Contributions from (to) subsidiaries - net | 0 | 0 | 0 | |||
Acquisition of businesses, net of cash and restricted cash acquired | 112 | |||||
Net change in short-term investments | 0 | 0 | 0 | |||
Other, net | 0 | 0 | 0 | |||
Net cash provided by (used in) investing activities | 2 | 125 | 0 | |||
Cash flows from financing activities: | ||||||
Issuance of long-term debt and debt of consolidated investment entities | 0 | 0 | 0 | |||
Repayments of long-term debt and debt of consolidated investment entities | 0 | (350) | 0 | |||
Issuance of preferred stock | 0 | |||||
Purchase of common stock | 0 | 0 | 0 | |||
Intercompany loans - net | 0 | 0 | 0 | |||
Dividends paid on preferred stock | 0 | |||||
Dividends paid on common stock | (190) | (6) | 0 | |||
Other, net | 0 | (416) | 0 | |||
Net cash provided by (used in) financing activities | (190) | (772) | 0 | |||
Effect of exchange rate changes on cash and restricted cash | 0 | 0 | 0 | |||
Change in cash and restricted cash | (1) | 9 | 0 | |||
Cash and restricted cash at beginning of year | 9 | 0 | 0 | |||
Change in cash of businesses held for sale | 0 | 0 | ||||
Cash and restricted cash at end of year | 8 | 9 | 0 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Cash | 8 | 9 | 0 | |||
Restricted cash | 0 | |||||
Total cash and restricted cash shown in the Condensed Consolidated Cash Flows | 8 | 0 | 0 | 8 | 9 | 0 |
Interest: | ||||||
Third party | (22) | (17) | 0 | |||
Intercompany | 45 | 0 | 0 | |||
Taxes: | ||||||
Income tax authorities | 0 | 0 | 0 | |||
Intercompany | 2 | 0 | 0 | |||
AIGLH | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | 1,470 | 2,445 | 1,413 | |||
Cash flows from investing activities: | ||||||
Sales of investments | 0 | 0 | 0 | |||
Sale of divested businesses, net | 0 | 0 | 0 | |||
Purchase of investments | 0 | 0 | 0 | |||
Loans to subsidiaries - net | 0 | 0 | 0 | |||
Contributions from (to) subsidiaries - net | 0 | 0 | 0 | |||
Acquisition of businesses, net of cash and restricted cash acquired | 0 | |||||
Net change in short-term investments | 0 | 0 | 0 | |||
Other, net | 0 | 0 | (5) | |||
Net cash provided by (used in) investing activities | 0 | 0 | (5) | |||
Cash flows from financing activities: | ||||||
Issuance of long-term debt and debt of consolidated investment entities | 0 | 0 | 0 | |||
Repayments of long-term debt and debt of consolidated investment entities | 0 | 0 | 0 | |||
Issuance of preferred stock | 0 | |||||
Purchase of common stock | 0 | 0 | 0 | |||
Intercompany loans - net | 0 | 0 | 0 | |||
Dividends paid on preferred stock | 0 | |||||
Dividends paid on common stock | (1,470) | (2,456) | (1,422) | |||
Other, net | 0 | 0 | 0 | |||
Net cash provided by (used in) financing activities | (1,470) | (2,456) | (1,422) | |||
Effect of exchange rate changes on cash and restricted cash | 0 | 0 | 0 | |||
Change in cash and restricted cash | 0 | (11) | (14) | |||
Cash and restricted cash at beginning of year | 9 | 20 | 34 | |||
Change in cash of businesses held for sale | 0 | 0 | ||||
Cash and restricted cash at end of year | 9 | 9 | 20 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Cash | 9 | 9 | 20 | |||
Total cash and restricted cash shown in the Condensed Consolidated Cash Flows | 9 | 20 | 20 | 9 | 9 | 20 |
Interest: | ||||||
Third party | (50) | (48) | (48) | |||
Intercompany | 0 | (1) | (1) | |||
Taxes: | ||||||
Income tax authorities | 0 | 0 | 0 | |||
Intercompany | 0 | 0 | 0 | |||
Other Subsidiaries | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | (1,439) | 1,651 | (6,659) | |||
Cash flows from investing activities: | ||||||
Sales of investments | 63,830 | 59,918 | 74,477 | |||
Sale of divested businesses, net | 2 | 10 | 752 | |||
Purchase of investments | (66,535) | (59,778) | (64,539) | |||
Loans to subsidiaries - net | (93) | (90) | 63 | |||
Contributions from (to) subsidiaries - net | 0 | 0 | 0 | |||
Acquisition of businesses, net of cash and restricted cash acquired | (354) | |||||
Net change in short-term investments | (1,463) | (9) | 104 | |||
Other, net | 1,436 | 273 | (1,955) | |||
Net cash provided by (used in) investing activities | (2,823) | (30) | 8,902 | |||
Cash flows from financing activities: | ||||||
Issuance of long-term debt and debt of consolidated investment entities | 3,286 | 2,264 | 1,851 | |||
Repayments of long-term debt and debt of consolidated investment entities | (2,196) | (1,829) | (1,974) | |||
Issuance of preferred stock | 0 | |||||
Purchase of common stock | 0 | 0 | 0 | |||
Intercompany loans - net | (513) | (868) | (199) | |||
Dividends paid on preferred stock | 0 | |||||
Dividends paid on common stock | (2,970) | (3,485) | (1,186) | |||
Other, net | 6,654 | 2,812 | (200) | |||
Net cash provided by (used in) financing activities | 4,261 | (1,106) | (1,708) | |||
Effect of exchange rate changes on cash and restricted cash | 16 | (11) | (29) | |||
Change in cash and restricted cash | 15 | 504 | 506 | |||
Cash and restricted cash at beginning of year | 3,213 | 2,709 | 2,070 | |||
Change in cash of businesses held for sale | (63) | 133 | ||||
Cash and restricted cash at end of year | 3,165 | 3,213 | 2,709 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Cash | 2,837 | 2,853 | 2,339 | |||
Total cash and restricted cash shown in the Condensed Consolidated Cash Flows | 3,165 | 2,709 | 2,709 | 3,165 | 3,213 | 2,709 |
Interest: | ||||||
Third party | (313) | (333) | (286) | |||
Intercompany | (42) | 0 | 1 | |||
Taxes: | ||||||
Income tax authorities | (241) | (122) | (215) | |||
Intercompany | (1,181) | (895) | (614) | |||
Other assets | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Restricted cash | 243 | 343 | 317 | |||
Other assets | AIG (As Guarantor) | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Restricted cash | 1 | 1 | 1 | |||
Other assets | Validus Holdings, Ltd | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Restricted cash | 0 | 0 | 0 | |||
Other assets | AIGLH | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Restricted cash | 0 | 0 | 0 | |||
Other assets | Other Subsidiaries | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Restricted cash | 242 | 342 | 316 | |||
Short-term investments | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Restricted cash | 188 | 142 | 58 | |||
Short-term investments | AIG (As Guarantor) | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Restricted cash | 102 | 124 | 4 | |||
Short-term investments | Validus Holdings, Ltd | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Restricted cash | 0 | 0 | ||||
Short-term investments | AIGLH | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Restricted cash | 0 | 0 | 0 | |||
Short-term investments | Other Subsidiaries | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Restricted cash | 86 | 18 | 54 | |||
Reclassification and Eliminations | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | (4,630) | (5,947) | (2,608) | |||
Cash flows from investing activities: | ||||||
Sales of investments | (583) | (3,206) | (3,758) | |||
Sale of divested businesses, net | 0 | 0 | 0 | |||
Purchase of investments | 583 | 3,206 | 3,758 | |||
Loans to subsidiaries - net | (420) | (778) | (262) | |||
Contributions from (to) subsidiaries - net | 237 | (1) | (2,446) | |||
Acquisition of businesses, net of cash and restricted cash acquired | 0 | |||||
Net change in short-term investments | 0 | 0 | 0 | |||
Other, net | 0 | 0 | 0 | |||
Net cash provided by (used in) investing activities | (183) | (779) | (2,708) | |||
Cash flows from financing activities: | ||||||
Issuance of long-term debt and debt of consolidated investment entities | 0 | 0 | ||||
Repayments of long-term debt and debt of consolidated investment entities | 0 | 0 | 0 | |||
Issuance of preferred stock | 0 | |||||
Purchase of common stock | 0 | 0 | 0 | |||
Intercompany loans - net | 420 | 778 | 262 | |||
Dividends paid on preferred stock | 0 | |||||
Dividends paid on common stock | 4,630 | 5,947 | 2,608 | |||
Other, net | (237) | 1 | 2,446 | |||
Net cash provided by (used in) financing activities | 4,813 | 6,726 | 5,316 | |||
Effect of exchange rate changes on cash and restricted cash | 0 | 0 | 0 | |||
Change in cash and restricted cash | 0 | 0 | 0 | |||
Cash and restricted cash at beginning of year | 0 | 0 | 0 | |||
Change in cash of businesses held for sale | 0 | 0 | ||||
Cash and restricted cash at end of year | 0 | 0 | 0 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Cash | 0 | 0 | 0 | |||
Total cash and restricted cash shown in the Condensed Consolidated Cash Flows | 0 | 0 | 0 | 0 | 0 | 0 |
Interest: | ||||||
Third party | 0 | 0 | 0 | |||
Intercompany | 0 | 0 | 0 | |||
Taxes: | ||||||
Income tax authorities | 0 | 0 | 0 | |||
Intercompany | $ 0 | $ 0 | $ 0 | |||
Reclassification and Eliminations | Other assets | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Restricted cash | 0 | 0 | 0 | |||
Reclassification and Eliminations | Short-term investments | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations [Abstract] | ||||||
Restricted cash | $ 0 | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Feb. 12, 2020 | Dec. 26, 2019 | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 26, 2018 | Sep. 28, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 22, 2017 | Sep. 29, 2017 | Jun. 28, 2017 | Mar. 29, 2017 |
Subsequent Event [Line Items] | |||||||||||||
Date dividends declared | Oct. 31, 2019 | Aug. 7, 2019 | May 6, 2019 | Feb. 13, 2019 | Oct. 31, 2018 | Aug. 2, 2018 | May 2, 2018 | Feb. 8, 2018 | Nov. 2, 2017 | Aug. 2, 2017 | May 3, 2017 | Feb. 14, 2017 | |
Date dividends paid | Dec. 26, 2019 | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 26, 2018 | Sep. 28, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 22, 2017 | Sep. 29, 2017 | Jun. 28, 2017 | Mar. 29, 2017 | |
Date of record | Dec. 12, 2019 | Sep. 17, 2019 | Jun. 14, 2019 | Mar. 15, 2019 | Dec. 12, 2018 | Sep. 17, 2018 | Jun. 14, 2018 | Mar. 15, 2018 | Dec. 8, 2017 | Sep. 15, 2017 | Jun. 14, 2017 | Mar. 15, 2017 | |
Subsequent event | Common Stock | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Date dividends declared | Feb. 12, 2020 | ||||||||||||
Dividends declared per common share | $ 0.32 | ||||||||||||
Date dividends paid | Mar. 30, 2020 | ||||||||||||
Date of record | Mar. 16, 2020 | ||||||||||||
Subsequent event | Preferred Stock | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Date dividends declared | Feb. 12, 2020 | ||||||||||||
Date dividends paid | Mar. 16, 2020 | ||||||||||||
Date of record | Feb. 28, 2020 | ||||||||||||
Dividends declared per preferred share | $ 365.625 |
Schedule I Summary of Investm_2
Schedule I Summary of Investments - Other than Investments in Related Parties (Details) $ in Millions | Dec. 31, 2019USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $ 321,255 |
Fair Value | 340,429 |
Amount at which shown in the Balance Sheet | 338,408 |
Fixed maturity securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 239,912 |
Fair Value | 257,768 |
Amount at which shown in the Balance Sheet | 257,768 |
U.S. government and government sponsored entities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 7,229 |
Fair Value | 7,501 |
Amount at which shown in the Balance Sheet | 7,501 |
Obligations of states, municipalities and political subdivisions | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 13,960 |
Fair Value | 15,318 |
Amount at which shown in the Balance Sheet | 15,318 |
Non-U.S. government | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 14,042 |
Fair Value | 14,869 |
Amount at which shown in the Balance Sheet | 14,869 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 17,861 |
Fair Value | 19,378 |
Amount at which shown in the Balance Sheet | 19,378 |
All other corporate and debt securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 120,203 |
Fair Value | 130,276 |
Amount at which shown in the Balance Sheet | 130,276 |
Mortgage-backed, asset-backed and collateralized | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 66,617 |
Fair Value | 70,426 |
Amount at which shown in the Balance Sheet | 70,426 |
Equity securities and mutual funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 841 |
Fair Value | 841 |
Amount at which shown in the Balance Sheet | 841 |
Common Stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 532 |
Fair Value | 532 |
Amount at which shown in the Balance Sheet | 532 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1 |
Fair Value | 1 |
Amount at which shown in the Balance Sheet | 1 |
Banks, trust and insurance companies | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 151 |
Fair Value | 151 |
Amount at which shown in the Balance Sheet | 151 |
Industrial, miscellaneous and all other | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 380 |
Fair Value | 380 |
Amount at which shown in the Balance Sheet | 380 |
Preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 13 |
Fair Value | 13 |
Amount at which shown in the Balance Sheet | 13 |
Mutual funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 296 |
Fair Value | 296 |
Amount at which shown in the Balance Sheet | 296 |
Mortgage and other loans receivable, net of allowance | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 46,984 |
Fair Value | 49,005 |
Amount at which shown in the Balance Sheet | 46,984 |
Other invested assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 19,495 |
Fair Value | 18,792 |
Amount at which shown in the Balance Sheet | 18,792 |
Short-term investments, at cost | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 13,230 |
Fair Value | 13,230 |
Amount at which shown in the Balance Sheet | 13,230 |
Derivative assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 793 |
Fair Value | 793 |
Amount at which shown in the Balance Sheet | $ 793 |
Schedule II Condensed Financi_2
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Balance Sheets) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||||
Short-term investments | $ 13,230,000,000 | $ 9,674,000,000 | ||
Other Investments | 18,792,000,000 | 19,341,000,000 | ||
Total investments | 337,615,000,000 | 314,209,000,000 | ||
Cash | 2,856,000,000 | 2,873,000,000 | $ 2,362,000,000 | |
Loans to subsidiaries | 0 | 0 | ||
Deferred income taxes | 13,146,000,000 | 15,221,000,000 | ||
Investment in consolidated subsidiaries | 0 | 0 | ||
Other assets | 16,383,000,000 | 13,568,000,000 | ||
Total assets | 525,064,000,000 | 491,984,000,000 | ||
Liabilities: | ||||
Outstanding debt | 35,350,000,000 | 34,540,000,000 | ||
Loans from subsidiaries | 0 | 0 | ||
Total liabilities | 457,637,000,000 | 434,675,000,000 | ||
AIG Shareholders' equity: | ||||
Preferred stock | 485,000,000 | 0 | ||
Common stock | 4,766,000,000 | 4,766,000,000 | ||
Treasury stock | (48,987,000,000) | (49,144,000,000) | ||
Additional paid-in capital | 81,345,000,000 | 81,268,000,000 | ||
Retained earnings | 23,084,000,000 | 20,884,000,000 | ||
Accumulated other comprehensive income (loss) | 4,982,000,000 | (1,413,000,000) | 5,465,000,000 | $ 3,230,000,000 |
Total AIG shareholders' equity | 65,675,000,000 | 56,361,000,000 | ||
Total liabilities and equity | 525,064,000,000 | 491,984,000,000 | ||
Short-term investments | ||||
Assets: | ||||
Restricted cash | 188,000,000 | 142,000,000 | 58,000,000 | |
Other assets | ||||
Assets: | ||||
Restricted cash | 243,000,000 | 343,000,000 | 317,000,000 | |
Parent Company [Member] | ||||
Assets: | ||||
Short-term investments | 3,329,000,000 | 1,141,000,000 | ||
Other Investments | 4,804,000,000 | 3,377,000,000 | ||
Total investments | 8,133,000,000 | 4,518,000,000 | ||
Cash | 2,000,000 | 2,000,000 | 3,000,000 | |
Loans to subsidiaries | 35,352,000,000 | 34,963,000,000 | ||
Due from affiliates - net | 1,504,000,000 | 1,206,000,000 | ||
Intercompany tax receivable | 3,121,000,000 | 3,053,000,000 | ||
Deferred income taxes | 9,426,000,000 | 10,747,000,000 | ||
Investment in consolidated subsidiaries | 39,921,000,000 | 33,300,000,000 | ||
Other assets | 340,000,000 | 383,000,000 | ||
Total assets | 97,799,000,000 | 88,172,000,000 | ||
Liabilities: | ||||
Due to affiliate | 3,231,000,000 | 2,329,000,000 | ||
Intercompany tax payable | 2,700,000,000 | 2,954,000,000 | ||
Outstanding debt | 22,030,000,000 | 22,422,000,000 | ||
Loans from subsidiaries | 715,000,000 | 615,000,000 | ||
Other liabilities (includes intercompany derivative liabilities of $33 in 2019 and $105 in 2018) | 3,448,000,000 | 3,491,000,000 | ||
Total liabilities | 32,124,000,000 | 31,811,000,000 | ||
AIG Shareholders' equity: | ||||
Preferred stock | 485,000,000 | 0 | ||
Common stock | 4,766,000,000 | 4,766,000,000 | ||
Treasury stock | (48,987,000,000) | (49,144,000,000) | ||
Additional paid-in capital | 81,345,000,000 | 81,268,000,000 | ||
Retained earnings | 23,084,000,000 | 20,884,000,000 | ||
Accumulated other comprehensive income (loss) | 4,982,000,000 | (1,413,000,000) | ||
Total AIG shareholders' equity | 65,675,000,000 | 56,361,000,000 | ||
Total liabilities and equity | 97,799,000,000 | 88,172,000,000 | ||
Intercompany derivative liabilities | 33,000,000 | 105,000,000 | ||
Parent Company [Member] | Short-term investments | ||||
Assets: | ||||
Restricted cash | 102,000,000 | 124,000,000 | 4,000,000 | |
Parent Company [Member] | Other assets | ||||
Assets: | ||||
Restricted cash | 1,000,000 | 1,000,000 | $ 1,000,000 | |
Series AIGFP | Parent Company [Member] | ||||
Liabilities: | ||||
Outstanding debt | 21,000,000 | 21,000,000 | ||
Notes and bonds payable | Parent Company [Member] | ||||
Liabilities: | ||||
Outstanding debt | 20,467,000,000 | 20,853,000,000 | ||
Junior subordinated debt | Parent Company [Member] | ||||
Liabilities: | ||||
Outstanding debt | $ 1,542,000,000 | $ 1,548,000,000 |
Schedule II Condensed Financi_3
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||||||||||
Net realized capital gains (losses) | $ 632 | $ (130) | $ (1,380) | ||||||||
Other income | 919 | 1,638 | 2,412 | ||||||||
Expenses: | |||||||||||
Interest expense | 1,417 | 1,309 | 1,168 | ||||||||
Losses on extinguishment of debt | 32 | 7 | (5) | ||||||||
Net (gain) loss on sale of divested businesses | 75 | (38) | (68) | ||||||||
Income from continuing operations before income tax expense | $ 1,036 | $ 1,260 | $ 1,837 | $ 1,154 | $ (695) | $ (1,527) | $ 1,252 | $ 1,227 | 5,287 | 257 | 1,466 |
Income tax expense | 1,166 | 154 | 7,526 | ||||||||
Net income (loss) attributable to AIG common shareholders from continuing operations | 3,278 | 36 | (6,088) | ||||||||
Income (loss) from discontinued operations, net of income taxes | 49 | 0 | (1) | 0 | (2) | (39) | 0 | (1) | 48 | (42) | 4 |
Net income (loss) attributable to AIG | $ 929 | $ 656 | $ 1,109 | $ 654 | $ (622) | $ (1,259) | $ 937 | $ 938 | 3,348 | (6) | (6,084) |
Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Equity in undistributed net income (loss) of consolidated subsidiaries | 44 | (5,160) | (2,375) | ||||||||
Dividend income from consolidated subsidiaries | 3,819 | 4,580 | 2,226 | ||||||||
Interest income | 1,034 | 961 | 656 | ||||||||
Net realized capital gains (losses) | (3) | (49) | 46 | ||||||||
Other income | 125 | 26 | 189 | ||||||||
Expenses: | |||||||||||
Interest expense | 985 | 954 | 949 | ||||||||
Losses on extinguishment of debt | 0 | 0 | 2 | ||||||||
Net (gain) loss on sale of divested businesses | 1 | 3 | 30 | ||||||||
Other expenses | 728 | 800 | 922 | ||||||||
Income from continuing operations before income tax expense | 3,305 | (1,399) | (1,161) | ||||||||
Income tax expense | (45) | (1,433) | 4,922 | ||||||||
Net income (loss) attributable to AIG common shareholders from continuing operations | 3,350 | 34 | (6,083) | ||||||||
Income (loss) from discontinued operations, net of income taxes | (2) | (40) | (1) | ||||||||
Net income (loss) attributable to AIG | 3,348 | (6) | (6,084) | ||||||||
Related party interest income | $ 904 | $ 840 | $ 512 |
Schedule II Condensed Financi_4
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | $ 929 | $ 656 | $ 1,109 | $ 654 | $ (622) | $ (1,259) | $ 937 | $ 938 | $ 3,348 | $ (6) | $ (6,084) |
Other comprehensive income (loss) | 6,415 | (6,293) | 2,235 | ||||||||
Comprehensive income (loss) attributable to AIG | 9,743 | (6,308) | (3,849) | ||||||||
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 3,348 | (6) | (6,084) | ||||||||
Other comprehensive income (loss) | 6,395 | (6,302) | 2,235 | ||||||||
Comprehensive income (loss) attributable to AIG | $ 9,743 | $ (6,308) | $ (3,849) |
Schedule II Condensed Financi_5
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Cash Flows) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | $ (928) | $ 61 | $ (7,818) | |||
Cash flows from investing activities: | ||||||
Sale of divested businesses, net | 2 | 10 | 792 | |||
Purchase of investments | (68,909) | (58,552) | (63,246) | |||
Net change in short-term investments | (3,633) | 1,524 | 2,098 | |||
Contributions from (to) subsidiaries - net | 0 | 0 | 0 | |||
Acquisition of business | 0 | (5,717) | 0 | |||
Mortgage and other loans receivable | (9,515) | (10,286) | (9,369) | |||
Payments received on mortgages and other loan receivables | 5,826 | 4,272 | 5,742 | |||
Loans to subsidiaries - net | 0 | 0 | 0 | |||
Other, net | 1,503 | 200 | (2,143) | |||
Net cash provided by (used in) investing activities | (5,475) | (223) | 14,041 | |||
Cash flows from financing activities: | ||||||
Issuance of long-term debt | 3,881 | 4,734 | 3,356 | |||
Repayments of long-term debt | (3,202) | (3,672) | (3,698) | |||
Issuance of preferred stock | 485 | 0 | 0 | |||
Dividends paid on preferred stock | (22) | 0 | 0 | |||
Dividends paid on common stock | (1,114) | (1,138) | (1,172) | |||
Loans from subsidiaries - net | 0 | 0 | 0 | |||
Purchase of common stock | 0 | (1,739) | (6,275) | |||
Other, net | (1,600) | 3,570 | 31 | |||
Net cash provided by (used in) financing activities | 6,379 | 794 | (5,697) | |||
Net increase (decrease) in cash and restricted cash | (8) | 621 | 497 | |||
Cash and restricted cash at beginning of year | 3,358 | 2,737 | 2,107 | |||
Cash and restricted cash at end of year | 3,287 | 3,358 | 2,737 | |||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | ||||||
Cash | $ 2,856 | $ 2,873 | $ 2,362 | |||
Total cash and restricted cash shown in the Condensed Consolidated Cash Flows | 3,358 | 3,358 | 2,737 | 3,287 | 3,358 | 2,737 |
Interest: | ||||||
Third party | (1,326) | (1,312) | (1,282) | |||
Taxes: | ||||||
Income tax authorities | (252) | (154) | (544) | |||
Intercompany | 0 | 0 | 0 | |||
Intercompany | 0 | 0 | 0 | |||
Other Assets [Member] | ||||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | ||||||
Restricted cash | 243 | 343 | 317 | |||
Short-term Investments [Member] | ||||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | ||||||
Restricted cash | 188 | 142 | 58 | |||
Parent Company [Member] | ||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | 3,484 | 1,256 | 36 | |||
Cash flows from investing activities: | ||||||
Sales and maturities of investments | 2,313 | 5,587 | 5,714 | |||
Sale of divested businesses, net | 0 | 0 | 40 | |||
Purchase of investments | (2,957) | (1,980) | (2,465) | |||
Net change in short-term investments | (2,170) | 1,533 | 1,994 | |||
Contributions from (to) subsidiaries - net | (237) | 1 | 2,446 | |||
Acquisition of business | 0 | (5,475) | 0 | |||
Payments received on mortgages and other loan receivables | 0 | 0 | 107 | |||
Loans to subsidiaries - net | 513 | 868 | 199 | |||
Other, net | 67 | (73) | (183) | |||
Net cash provided by (used in) investing activities | (2,471) | 461 | 7,852 | |||
Cash flows from financing activities: | ||||||
Issuance of long-term debt | 595 | 2,470 | 1,505 | |||
Repayments of long-term debt | (1,006) | (1,493) | (1,724) | |||
Issuance of preferred stock | 485 | 0 | 0 | |||
Dividends paid on preferred stock | (22) | 0 | 0 | |||
Dividends paid on common stock | (1,114) | (1,138) | (1,172) | |||
Loans from subsidiaries - net | 93 | 90 | (63) | |||
Purchase of common stock | 0 | (1,739) | (6,275) | |||
Other, net | (66) | 212 | (154) | |||
Net cash provided by (used in) financing activities | (1,035) | (1,598) | (7,883) | |||
Net increase (decrease) in cash and restricted cash | (22) | 119 | 5 | |||
Cash and restricted cash at beginning of year | 127 | 8 | 3 | |||
Cash and restricted cash at end of year | 105 | 127 | 8 | |||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | ||||||
Cash | 2 | 2 | 3 | |||
Total cash and restricted cash shown in the Condensed Consolidated Cash Flows | 105 | 127 | 3 | 105 | 127 | 8 |
Interest: | ||||||
Third party | (941) | (914) | (948) | |||
Taxes: | ||||||
Income tax authorities | (11) | (32) | (329) | |||
Intercompany | 1,179 | 895 | 614 | |||
Intercompany | (3) | 1 | 0 | |||
Non-cash investing/financing activities: | ||||||
Other capital contributions - net | 15 | 2,369 | 259 | |||
Return of capital | 15 | 2,706 | 26 | |||
Dividends received in the form of securities | $ 702 | $ 745 | $ 735 | |||
Parent Company [Member] | Other Assets [Member] | ||||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | ||||||
Restricted cash | 1 | 1 | 1 | |||
Parent Company [Member] | Short-term Investments [Member] | ||||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | ||||||
Restricted cash | $ 102 | $ 124 | $ 4 |
Schedule III Supplementary In_2
Schedule III Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | $ 11,207 | $ 12,694 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 128,840 | 128,574 | |
Unearned Premiums | 18,269 | 19,248 | |
Policy and Contract Claims | 881 | 865 | |
Premiums and Policy Fees | 33,576 | 33,405 | $ 34,309 |
Net Investment Income | 14,619 | 12,476 | 14,179 |
Losses and Loss Expenses Incurred, Benefits | 29,234 | 31,166 | 33,564 |
Amortization of Deferred Policy Acquisition Costs | 5,164 | 5,386 | 4,288 |
Other Operating Expenses | 8,537 | 9,302 | 9,107 |
Net Premiums Written | 25,454 | 26,797 | 25,759 |
General Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 2,639 | 2,889 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 71,272 | 76,185 | |
Unearned Premiums | 18,022 | 18,727 | |
Policy and Contract Claims | 0 | 0 | |
Premiums and Policy Fees | 26,438 | 27,505 | 26,026 |
Net Investment Income | 3,444 | 2,668 | 3,668 |
Losses and Loss Expenses Incurred, Benefits | 17,246 | 20,824 | 21,642 |
Amortization of Deferred Policy Acquisition Costs | 4,482 | 4,596 | 3,765 |
Other Operating Expenses | 4,621 | 5,222 | 5,100 |
Net Premiums Written | 25,092 | 26,407 | 25,438 |
Life and Retirement | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 7,901 | 9,046 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 17,963 | 14,739 | |
Unearned Premiums | 0 | 0 | |
Policy and Contract Claims | 864 | 851 | |
Premiums and Policy Fees | 6,493 | 5,261 | 6,844 |
Net Investment Income | 8,461 | 7,922 | 7,816 |
Losses and Loss Expenses Incurred, Benefits | 9,127 | 7,692 | 8,607 |
Amortization of Deferred Policy Acquisition Costs | 650 | 680 | 743 |
Other Operating Expenses | 2,472 | 2,412 | 2,296 |
Net Premiums Written | 0 | 0 | 0 |
Other Operations | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 9 | 0 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 177 | 47 | |
Unearned Premiums | 10 | 6 | |
Policy and Contract Claims | 0 | 0 | |
Premiums and Policy Fees | 42 | 39 | 712 |
Net Investment Income | 234 | (439) | (81) |
Losses and Loss Expenses Incurred, Benefits | 739 | 357 | 1,076 |
Amortization of Deferred Policy Acquisition Costs | (36) | 5 | (296) |
Other Operating Expenses | 1,138 | 1,270 | 1,227 |
Net Premiums Written | 420 | 387 | 317 |
Legacy Portfolio | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 658 | 759 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 39,428 | 37,603 | |
Unearned Premiums | 237 | 515 | |
Policy and Contract Claims | 17 | 14 | |
Premiums and Policy Fees | 603 | 600 | 727 |
Net Investment Income | 2,480 | 2,325 | 2,776 |
Losses and Loss Expenses Incurred, Benefits | 2,122 | 2,293 | 2,239 |
Amortization of Deferred Policy Acquisition Costs | 68 | 105 | 76 |
Other Operating Expenses | 306 | 398 | 484 |
Net Premiums Written | $ (58) | $ 3 | $ 4 |
Schedule IV Reinsurance (Detail
Schedule IV Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Net Amount | $ 30,561 | $ 30,614 | $ 31,374 |
Reportable Segments | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct | 34,380 | 34,939 | 36,699 |
Ceded to Other Companies | 10,442 | 9,019 | 8,714 |
Assumed from Other Companies | 6,623 | 4,694 | 3,389 |
Net Amount | $ 30,561 | $ 30,614 | $ 31,374 |
Percent of Amount Assumed to Net | 21.70% | 15.30% | 10.80% |
Reportable Segments | General Insurance Companies | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct | $ 30,017 | $ 31,450 | $ 30,928 |
Ceded to Other Companies | 9,526 | 8,164 | 7,904 |
Assumed from Other Companies | 6,395 | 4,638 | 3,374 |
Net Amount | $ 26,886 | $ 27,924 | $ 26,398 |
Percent of Amount Assumed to Net | 23.80% | 16.60% | 12.80% |
Reportable Segments | Life and Retirement Companies | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct | $ 4,363 | $ 3,489 | $ 5,771 |
Ceded to Other Companies | 916 | 855 | 810 |
Assumed from Other Companies | 228 | 56 | 15 |
Net Amount | $ 3,675 | $ 2,690 | $ 4,976 |
Percent of Amount Assumed to Net | 6.20% | 2.10% | 0.30% |
Reportable Segments | Other | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct | $ 0 | $ 0 | $ 0 |
Ceded to Other Companies | 0 | 0 | 0 |
Assumed from Other Companies | 0 | 0 | 0 |
Net Amount | $ 0 | $ 0 | $ 0 |
Percent of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Long-duration insurance in force | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct | $ 1,185,771 | $ 1,094,774 | $ 1,061,095 |
Ceded to Other Companies | 264,732 | 228,846 | 202,402 |
Assumed from Other Companies | 279 | 300 | 321 |
Net Amount | $ 921,318 | $ 866,228 | $ 859,014 |
Percent of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Schedule V Valuation and Qual_2
Schedule V Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for mortgage and other loans receivable | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | $ 397 | $ 322 | $ 297 |
Charged to costs and expenses | 46 | 93 | 49 |
Charge offs | (5) | (19) | (25) |
Acquisitions | 0 | 0 | 0 |
Divested Business | 0 | 0 | 0 |
Other changes | 0 | 1 | 1 |
Balance at the end of the year | 438 | 397 | 322 |
Allowance for premiums and insurances balances receivable | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 216 | 236 | 262 |
Charged to costs and expenses | (25) | 2 | 36 |
Charge offs | (23) | (20) | (58) |
Acquisitions | 0 | 0 | 0 |
Divested Business | 0 | 0 | (8) |
Other changes | 10 | (2) | 4 |
Balance at the end of the year | 178 | 216 | 236 |
Allowance for reinsurance assets | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 140 | 187 | 207 |
Charged to costs and expenses | (20) | (8) | 33 |
Charge offs | (11) | (45) | (50) |
Acquisitions | 0 | 8 | 0 |
Divested Business | 0 | 0 | 0 |
Other changes | 2 | (2) | (3) |
Balance at the end of the year | 111 | 140 | 187 |
Federal and foreign valuation allowance for deferred tax assets | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 1,779 | 1,374 | 2,831 |
Charged to costs and expenses | (44) | 21 | 43 |
Charge offs | 0 | 0 | 0 |
Acquisitions | 0 | 82 | 0 |
Divested Business | 0 | 0 | 0 |
Other changes | (310) | 302 | (1,500) |
Balance at the end of the year | $ 1,425 | $ 1,779 | $ 1,374 |