Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
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 | 858,140,647 | |
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 Quarterly Report | true | |
Document Transition Report | false | |
Common Stock | ||
Entity Listings [Line Items] | ||
Security 12b Title | Common Stock, Par Value $2.50 Per Share | |
Trading Symbol | AIG | |
Security Exchange Name | NYSE | |
5.75% Series A-2 Junior Subordinated Debentures | ||
Entity Listings [Line Items] | ||
Security 12b Title | 5.75% Series A-2 Junior Subordinated Debentures | |
Trading Symbol | AIG 67BP | |
Security Exchange Name | NYSE | |
4.875% Series A-3 Junior Subordinated Debentures | ||
Entity Listings [Line Items] | ||
Security 12b Title | 4.875% Series A-3 Junior Subordinated Debentures | |
Trading Symbol | AIG 67EU | |
Security Exchange Name | NYSE | |
Stock Purchase Rights | ||
Entity Listings [Line Items] | ||
Security 12b Title | Stock Purchase Rights | |
No Trading Symbol Flag | true | |
Security Exchange Name | NYSE | |
Depository Shares Each Representing 1/1,000th Interest in a Share of Series A 5.85% Non-Cumulative Perpetual Preferred Stock | ||
Entity Listings [Line Items] | ||
Security 12b Title | Depositary Shares Each Representing a 1/1,000th Interest in a Share of Series A 5.85% Non-Cumulative Perpetual Preferred Stock | |
Trading Symbol | AIG PRA | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Fixed maturity securities: | |||
Bonds available for sale, at fair value, net of allowance for credit losses of $122 in 2021 and $186 in 2020 (amortized cost: 2021 - $247,438; 2020 - $244,337) | [1] | $ 263,012 | $ 271,496 |
Other bond securities, at fair value (See Note 5) | [1] | 4,973 | 5,291 |
Equity Securities, at fair value (See Note 5) | [1] | 1,160 | 1,056 |
Mortgage and other loans receivable, net of allowance for credit losses of $787 in 2021 and $814 in 2020 | [1] | 45,468 | 45,562 |
Other invested assets (portion measured at fair value: 2021 - $8.713; 2020 - $8,422) | [1] | 19,390 | 19,060 |
Short-term investments, including restricted cash of $210 in 2021 and $180 in 2020 (portion measured at fair value: 2021 - $4,426; 2020 - $5,968) | [1] | 14,454 | 18,203 |
Total investments | 348,457 | 360,668 | |
Cash | [1] | 2,796 | 2,827 |
Accrued investment income | [1] | 2,309 | 2,271 |
Premiums and other receivables, net of allowance for credit losses and disputes of $203 in 2021 and $205 in 2020 | 13,808 | 11,333 | |
Reinsurance assets, net of allowance for credit losses and disputes | 41,932 | 38,963 | |
Deferred income taxes | 13,690 | 12,624 | |
Deferred policy acquisition costs | 11,144 | 9,805 | |
Other assets, net of allowance for credit losses of $49 in 2021 and $49 in 2020, including restricted cash of $238 in 2021 and $223 in 2020 (portion measured at fair value: 2021 - $1,006; 2020 - $887) | [1] | 13,223 | 13,122 |
Separate account assets, at fair value | 102,689 | 100,290 | |
Total assets | 584,390 | 586,481 | |
Liabilities: | |||
Liability for unpaid losses and loss adjustment expenses, including allowance for credit losses of $14 in 2021 and $14 in 2020 | 78,832 | 77,720 | |
Unearned premiums | 21,012 | 18,660 | |
Future policy benefits for life and accident and health insurance contracts | 50,709 | 51,097 | |
Policyholder contract deposits (portion measured at fair value: 2021 - $7.617; 2020 - $9,798) | 157,741 | 160,251 | |
Other policyholder funds | 3,564 | 3,548 | |
Fortitude Re funds withheld payable (portion measured at fair value: 2021 - $3,487; 2020 - $6,042) | 40,181 | 43,060 | |
Other liabilities (portion measured at fair value: 2021 - $703; 2020 - $570) | [1] | 30,454 | 27,122 |
Long-term debt (portion measured at fair value: 2021 - $2,015; 2020 - $2,097) | [1] | 26,432 | 28,103 |
Separate account liabilities | 102,689 | 100,290 | |
Total liabilities | 520,830 | 519,282 | |
Contingencies, commitments and guarantees (see Note 11) | |||
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: 2021 - 20,000 and 2020 - 20,000; liquidation preference $500 | 485 | 485 | |
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2021 - 1,906,671,492 and 2020 - 1,906,671,492 | 4,766 | 4,766 | |
Treasury stock, at cost; 2021 - 1,047,288,039 shares; 2020 - 1,045,113,443 shares of common stock | (49,412) | (49,322) | |
Additional paid-in capital | 81,253 | 81,418 | |
Retained earnings | 19,121 | 15,504 | |
Accumulated other comprehensive income | 6,466 | 13,511 | |
Total AIG shareholders' equity | 62,679 | 66,362 | |
Non-redeemable noncontrolling interests | 881 | 837 | |
Total equity | 63,560 | 67,199 | |
Total liabilities and equity | 584,390 | 586,481 | |
Fortitude | |||
Fixed maturity securities: | |||
Reinsurance assets, net of allowance for credit losses and disputes | 34,342 | 34,578 | |
Debt of consolidated investments | |||
Liabilities: | |||
Long-term debt (portion measured at fair value: 2021 - $2,015; 2020 - $2,097) | [1] | $ 9,216 | $ 9,431 |
[1] | See Note 8 for details of balances associated with variable interest entities. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical - assets and liabilities) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Assets: | |||
Bonds available for sale, allowance for credit losses | $ 122 | $ 186 | |
Bonds available for sale, amortized cost | 247,438 | 244,337 | |
Mortgage and other loans receivable, allowance for credit losses | 787 | 814 | |
Other invested assets, portion measured at fair value | 8,713 | 8,422 | |
Short-term investments, portion measured at fair value | 4,426 | 5,968 | |
Premiums and other receivables, allowance for credit losses and disputes | 203 | 205 | |
Reinsurance assets, allowance for credit losses and disputes | 329 | 326 | |
Other assets, allowance for credit losses | 49 | 49 | |
Other assets, portion measured at fair value | 1,006 | 887 | |
Liabilities: | |||
Liability for unpaid losses and loss adjustment expenses, allowance for credit losses | 14 | 14 | |
Policyholder contract deposits, portion measured at fair value | 7,617 | 9,798 | |
Fortitude Re funds withheld payable, portion measured at fair value | 3,487 | 6,042 | |
Other liabilities, portion measured at fair value | 703 | 570 | |
Long-term debt, portion measured at fair value | 2,015 | 2,097 | |
Fortitude | |||
Assets: | |||
Reinsurance assets, allowance for credit losses and disputes | 0 | 0 | |
Other assets | |||
Assets: | |||
Short-term investments, restricted cash | 238 | [1] | 223 |
Short-term investments | |||
Assets: | |||
Short-term investments, restricted cash | $ 210 | [1] | $ 180 |
[1] | Includes funds held for tax sharing payments to AIG Parent, security deposits, and replacement reserve deposits related to our affordable housing investments. |
Condensed Consolidated Balanc_3
Condensed Consolidated Balance Sheets (Parenthetical - equity) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
AIG shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 20,000 | 20,000 |
Preferred stock liquidation preference | $ 500 | $ 500 |
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 | 1,047,288,039 | 1,045,113,443 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Premiums | $ 6,507 | $ 7,443 |
Policy fees | 784 | 755 |
Net investment income | 3,657 | 2,508 |
Net realized capital gains | 3,250 | 3,519 |
Other income | 256 | 218 |
Total revenues | 14,454 | 14,443 |
Benefits, losses and expenses: | ||
Policyholder benefits and losses incurred | 5,139 | 6,325 |
Interest credited to policyholder account balances | 868 | 957 |
Amortization of deferred policy acquisition costs | 1,304 | 1,862 |
General operating and other expenses | 2,088 | 2,153 |
Interest expense | 342 | 355 |
(Gain) loss on extinguishment of debt | (8) | 17 |
Net (gains) losses on sale or disposal of divested businesses | (7) | 216 |
Total benefits, losses and expenses | 9,726 | 11,885 |
Income from continuing operations before income tax expense | 4,728 | 2,558 |
Income tax expense | 798 | 904 |
Income from continuing operations | 3,930 | 1,654 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 |
Net income | 3,930 | 1,654 |
Less: | ||
Net income (loss) from continuing operations attributable to noncontrolling interests | 54 | (95) |
Net income attributable to AIG | 3,876 | 1,749 |
Less: Dividends on preferred stock | 7 | 7 |
Net income attributable to AIG common shareholders | $ 3,869 | $ 1,742 |
Basic: | ||
Income from continuing operations | $ 4.45 | $ 1.99 |
Income from discontinued operations | 0 | 0 |
Net income attributable to AIG common shareholders | 4.45 | 1.99 |
Diluted: | ||
Income (loss) from continuing operations | 4.41 | 1.98 |
Income from discontinued operations | 0 | 0 |
Net income (loss) attributable to AIG common shareholders | $ 4.41 | $ 1.98 |
Weighted average shares outstanding: | ||
Basic | 868,105,069 | 874,213,630 |
Diluted | 876,269,924 | 878,866,213 |
Excluding Fortitude Re funds withheld assets | ||
Revenues: | ||
Net investment income | $ 3,171 | $ 2,508 |
Net realized capital gains | 695 | 3,519 |
Fortitude Re funds withheld assets | ||
Revenues: | ||
Net investment income | 486 | 0 |
Net realized capital gains | 173 | 0 |
Fortitude Re funds withheld embedded derivative | ||
Revenues: | ||
Net realized capital gains | $ 2,382 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Condensed Consolidated Statements of Comprehensive Loss | ||
Net income | $ 3,930 | $ 1,654 |
Other comprehensive loss, net of tax | ||
Change in unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken | 33 | (359) |
Change in unrealized depreciation of all other investments | (7,199) | (5,542) |
Change in foreign currency translation adjustments | 125 | (85) |
Change in retirement plan liabilities adjustment | (3) | (7) |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | (1) | 3 |
Other comprehensive loss | (7,045) | (5,990) |
Comprehensive loss | (3,115) | (4,336) |
Comprehensive income (loss) attributable to noncontrolling interests | 54 | (109) |
Comprehensive loss attributable to AIG | $ (3,169) | $ (4,227) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Cumulative effect of change in accounting principle | Total AIG Shareholders' Equity | Total AIG Shareholders' EquityCumulative effect of change in accounting principle | Preferred Stock and Additional Paid-In Capital | Preferred Stock and Additional Paid-In CapitalCumulative effect of change in accounting principle | Common Stock | Common StockCumulative effect of change in accounting principle | Treasury Stock | Treasury StockCumulative effect of change in accounting principle | Additional Paid-in Capital | Additional Paid-in CapitalCumulative effect of change in accounting principle | Retained Earnings | Retained EarningsCumulative effect of change in accounting principle | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeCumulative effect of change in accounting principle | Non redeemable Non-controlling Interests | Non redeemable Non-controlling InterestsCumulative effect of change in accounting principle |
Balance at Dec. 31, 2019 | $ 67,427 | $ (487) | $ 65,675 | $ (487) | $ 485 | $ 0 | $ 4,766 | $ 0 | $ (48,987) | $ 0 | $ 81,345 | $ 0 | $ 23,084 | $ (487) | $ 4,982 | $ 0 | $ 1,752 | $ 0 |
Common stock issued under stock plans | (95) | (95) | 0 | 0 | 160 | (255) | 0 | 0 | 0 | |||||||||
Purchase of common stock | (500) | (500) | 0 | 0 | (500) | 0 | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to AIG or noncontrolling interests | 1,654 | 1,749 | 0 | 0 | 0 | 0 | 1,749 | 0 | (95) | |||||||||
Dividends on preferred stock | (7) | (7) | 0 | 0 | 0 | 0 | (7) | 0 | 0 | |||||||||
Dividends on common stock | (276) | (276) | 0 | 0 | 0 | 0 | (276) | 0 | 0 | |||||||||
Other comprehensive income (loss) | (5,990) | (5,976) | 0 | 0 | 0 | 0 | 0 | (5,976) | (14) | |||||||||
Net increase due to divestitures and acquisitions | 48 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 48 | |||||||||
Contributions from noncontrolling interests | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | |||||||||
Distributions to noncontrolling interests | (22) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (22) | |||||||||
Other | 90 | 90 | 0 | 0 | (7) | 98 | (1) | 0 | 0 | |||||||||
Balance at Mar. 31, 2020 | 61,843 | 60,173 | 485 | 4,766 | (49,334) | 81,188 | 24,062 | (994) | 1,670 | |||||||||
Balance at Dec. 31, 2020 | 67,199 | $ 0 | 66,362 | $ 0 | 485 | $ 0 | 4,766 | $ 0 | (49,322) | $ 0 | 81,418 | $ 0 | 15,504 | $ 0 | 13,511 | $ 0 | 837 | $ 0 |
Common stock issued under stock plans | (84) | (84) | 0 | 0 | 171 | (255) | 0 | 0 | 0 | |||||||||
Purchase of common stock | (362) | (362) | 0 | 0 | (362) | 0 | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to AIG or noncontrolling interests | 3,930 | 3,876 | 0 | 0 | 0 | 0 | 3,876 | 0 | 54 | |||||||||
Dividends on preferred stock | (7) | (7) | 0 | 0 | 0 | 0 | (7) | 0 | 0 | |||||||||
Dividends on common stock | (276) | (276) | 0 | 0 | 0 | 0 | (276) | 0 | 0 | |||||||||
Other comprehensive income (loss) | (7,045) | (7,045) | 0 | 0 | 0 | 0 | 0 | (7,045) | 0 | |||||||||
Net increase due to divestitures and acquisitions | 75 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 75 | |||||||||
Contributions from noncontrolling interests | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5 | |||||||||
Distributions to noncontrolling interests | (90) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (90) | |||||||||
Other | 215 | 215 | 0 | 0 | 101 | 90 | 24 | 0 | 0 | |||||||||
Balance at Mar. 31, 2021 | $ 63,560 | $ 62,679 | $ 485 | $ 4,766 | $ (49,412) | $ 81,253 | $ 19,121 | $ 6,466 | $ 881 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 3,930 | $ 1,654 |
Income (loss) from discontinued operations | 0 | 0 |
Noncash revenues, expenses, gains and losses included in income: | ||
Net gains on sales of securities available for sale and other assets | (417) | (265) |
Net (gains) losses on sale or disposal of divested businesses | (7) | 216 |
(Gains) losses on extinguishment of debt | (8) | 17 |
Unrealized gains in earnings - net | (853) | (3,197) |
Equity in loss from equity method investments, net of dividends or distributions | 3 | 167 |
Depreciation and other amortization | 1,423 | 1,878 |
Impairments of assets | 6 | 25 |
Changes in operating assets and liabilities: | ||
Insurance reserves | 3,628 | 1,727 |
Premiums and other receivables and payables - net | (2,863) | (62) |
Reinsurance assets and funds held under reinsurance treaties | (2,879) | (2,131) |
Capitalization of deferred policy acquisition costs | (1,422) | (1,379) |
Current and deferred income taxes - net | 756 | 842 |
Other, net | (657) | (78) |
Total adjustments | (3,290) | (2,240) |
Net cash provided by (used in) operating activities | 640 | (586) |
Sales or distribution of: | ||
Available for sale securities | 6,200 | 7,040 |
Other securities | 248 | 1,577 |
Other invested assets | 1,147 | 1,447 |
Maturities of fixed maturity securities available for sale | 7,823 | 6,768 |
Principal payments received on and sales of mortgage and other loans receivable | 2,009 | 1,014 |
Purchases of: | ||
Available for sale securities | (15,329) | (15,121) |
Other securities | (64) | (317) |
Other invested assets | (649) | (717) |
Mortgage and other loans receivable | (1,997) | (1,733) |
Net change in short-term investments | 4,067 | (6,023) |
Other, net | (1,950) | 5,432 |
Net cash provided by (used in) investing activities | 1,505 | (633) |
Proceeds from (payments for) | ||
Policyholder contract deposits | 5,716 | 5,761 |
Policyholder contract withdrawals | (5,190) | (4,547) |
Issuance of long-term debt and debt of consolidated investment entities | 27 | 38 |
Repayments of long-term debt and debt of consolidated investment entities | (1,515) | (363) |
Borrowings under syndicated credit facility | 0 | 1,300 |
Issuance of common stock | 0 | 0 |
Purchase of common stock | (362) | (500) |
Dividends paid on preferred stock | (7) | (7) |
Dividends paid on common stock | (276) | (276) |
Other, net | (102) | (288) |
Net cash provided by (used in) financing activities | (2,114) | 1,232 |
Effect of exchange rate changes on cash and restricted cash | (17) | 10 |
Net increase in cash and restricted cash | 14 | 23 |
Cash and restricted cash at beginning of year | 3,230 | 3,287 |
Change in cash of businesses held for sale | 0 | 9 |
Cash and restricted cash at end of period | 3,244 | 3,319 |
Debt of consolidated investments | ||
Proceeds from (payments for) | ||
Issuance of long-term debt and debt of consolidated investment entities | 495 | 635 |
Repayments of long-term debt and debt of consolidated investment entities | $ (900) | $ (521) |
Supplementary Disclosure of Con
Supplementary Disclosure of Condensed Consolidated Cash Flow Information - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | ||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | ||||||
Cash | $ 2,796 | [1] | $ 2,738 | $ 2,827 | [1] | |
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows | 3,244 | 3,319 | 3,230 | |||
Cash paid during the period for: | ||||||
Interest | 255 | 323 | ||||
Taxes | 42 | 62 | ||||
Cash Flow, Noncash Investing Activities Disclosure | ||||||
Fixed maturity securities available for sale received in connection with pension risk transfer transactions | 0 | 553 | ||||
Fixed maturity securities received in connection with reinsurance transactions | 161 | 0 | ||||
Fixed maturity securities transferred in connection with reinsurance transactions | (194) | 0 | ||||
Cash Flow, Noncash Financing Activities Disclosure | ||||||
Interest credited to policyholder contract deposits included in financing activities | 860 | 991 | ||||
Fee income debited to policyholder contract deposits included in financing activities | (423) | (423) | ||||
Other assets | ||||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | ||||||
Restricted cash | 238 | [2] | 257 | [2] | 223 | |
Short-term investments | ||||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | ||||||
Restricted cash | $ 210 | [2] | $ 324 | [2] | $ 180 | |
[1] | See Note 8 for details of balances associated with variable interest entities. | |||||
[2] | Includes funds held for tax sharing payments to AIG Parent, security deposits, and replacement reserve deposits related to our affordable housing investments. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. Basis of Presentation American International Group, Inc. (AIG) is a leading global insurance organization serving customers in approximately 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. These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) and should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020 (the 2020 Annual Report). The condensed consolidated financial information as of December 31, 2020 included herein has been derived from the audited Consolidated Financial Statements in the 2020 Annual Report. Certain of our foreign subsidiaries included in the Condensed Consolidated Financial Statements report on the basis of a 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 Condensed Consolidated Financial Statements has been considered for adjustment and/or disclosure. In the opinion of management, these Condensed Consolidated Financial Statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein. Operating results for the three months ended March 31, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, especially when considering the risks and uncertainties associated with COVID-19 and the impact it may have on our business, results of operations and financial condition. We evaluated the need to recognize or disclose events that occurred subsequent to March 31, 2021 and prior to the issuance of these Condensed Consolidated Financial Statements. Sales/disposals of Businesses Fortitude Holdings On June 2, 2020, we completed the sale of a majority of the interests in Fortitude Group Holdings, LLC (Fortitude Holdings) to Carlyle FRL, L.P. (Carlyle FRL), an investment fund advised by an affiliate of The Carlyle Group Inc. (Carlyle), and T&D United Capital Co., Ltd. (T&D), a subsidiary of T&D Holdings, Inc., under the terms of a membership interest purchase agreement entered into on November 25, 2019 by and among AIG, Fortitude Holdings, Carlyle FRL, Carlyle, T&D and T&D Holdings, Inc. (the Majority Interest Fortitude Sale). AIG established Fortitude Reinsurance Company Ltd. (Fortitude Re), a wholly owned subsidiary of Fortitude Holdings, in 2018 in a series of reinsurance transactions related to AIG’s Run-Off operations. As of March 31, 2021, approximately $ 30.3 billion of reserves from AIG’s Life and Retirement Run-Off Lines and approximately $ 4.0 billion of reserves from AIG’s General Insurance Run-Off Lines, related to business written by multiple wholly-owned AIG subsidiaries, had been ceded to Fortitude Re under these reinsurance transactions. As of closing of the Majority Interest Fortitude Sale, these reinsurance transactions are no longer considered affiliated transactions and Fortitude Re is the reinsurer of the majority of AIG’s Run-Off operations. As these reinsurance transactions are structured as modified coinsurance and loss portfolio transfers with funds withheld, following the closing of the Majority Interest Fortitude Sale, AIG continues to reflect the invested assets, which consist mostly of available for sale securities, supporting Fortitude Re’s obligations, in AIG’s financial statements. AIG sold a 19.9 percent ownership interest in Fortitude Holdings to TC Group Cayman Investments Holdings, L.P. (TCG), an affiliate of Carlyle, in November 2018 (the 2018 Fortitude Sale). As a result of completion of the Majority Interest Fortitude Sale, Carlyle FRL purchased from AIG a 51.6 percent ownership interest in Fortitude Holdings and T&D purchased from AIG a 25 percent ownership interest in Fortitude Holdings; AIG retained a 3.5 percent ownership interest in Fortitude Holdings and one seat on its Board of Managers. The $ 2.2 billion of proceeds received by AIG at closing include (i) the $ 1.8 billion under the Majority Interest Fortitude Sale, which is subject to a post-closing purchase price adjustment pursuant to which AIG will pay Fortitude Re for certain adverse development in property casualty related reserves, based on an agreed methodology, that may occur on or prior to December 31, 2023, up to a maximum payment of $ 500 million; and (ii) a $ 383 million purchase price adjustment from Carlyle FRL and T&D, corresponding to their respective portions of a proposed $ 500 million non-pro rata distribution from Fortitude Holdings that was not received by AIG prior to the closing. AIG recorded a total after-tax reduction to total AIG shareholders’ equity of $ 4.3 billion related to the sale of the majority interest in and deconsolidation of Fortitude Holdings in the second quarter of 2020. The impact to equity was primarily due to a $ 6.7 billion after-tax loss partially offset by a $ 2.4 billion increase in accumulated other comprehensive income (AOCI) due to the release of shadow adjustments primarily related to future policy benefits. The $ 6.7 billion after-tax loss was comprised of (i) a $ 2.7 billion loss related to the write-off of prepaid insurance assets and deferred policy acquisition costs (DAC) upon deconsolidation of Fortitude Holdings and (ii) $ 4.0 billion related to the loss on the sale primarily as a result of increases in Fortitude Holdings’ equity principally related to mark to market movements from the December 31, 2018 date as of which Fortitude Holdings’ equity was calculated for purposes of the purchase price determination, through the June 2, 2020 closing date. In connection with the Majority Interest Fortitude Sale, AIG, Fortitude Holdings, and TCG agreed that, effective as of the closing, (i) AIG’s investment commitment targets under the 2018 Fortitude Sale (whereby AIG had agreed to invest certain amounts into various Carlyle strategies and to make certain minimum investment management fee payments by November 2021) were assumed by Fortitude Holdings and AIG was released therefrom, (ii) the purchase price adjustment that AIG had agreed to provide TCG in the 2018 Fortitude Sale (whereby AIG had agreed to reimburse TCG for adverse development in property casualty related reserves, based on an agreed methodology, that may occur on or prior to December 31, 2023, up to the value of TCG’s investment in Fortitude Holdings) has been terminated, and (iii) TCG remains obligated to pay AIG $ 115 million of deferred consideration upon settlement of the post-closing purchase price adjustment referred to above. This latter amount is composed of $ 95 million of deferred consideration contemplated as part of the 2018 Fortitude Sale, together with $ 19.9 million in respect of TCG’s 19.9 percent share of the unpaid portion of the $ 500 million non-pro rata dividend to be paid to AIG under the 2018 Fortitude Sale (TCG paid $ 79.6 million to AIG on May 26, 2020). In addition, the 2018 capital maintenance agreement between AIG and Fortitude Re and the letters of credit issued in support of Fortitude Re and subject to reimbursement by AIG in the event of a drawdown were terminated as of the closing of the Majority Interest Fortitude Sale. Upon closing of the Majority Interest Fortitude Sale, AIG entered into a transition services agreement with Fortitude Holdings for the provision of transition services for a period after closing, and letter of credit agreements with certain financial institutions, which issued letters of credit in support of certain General Insurance subsidiaries that have reinsurance agreements in place with Fortitude Re in the amount of $ 600 million. These letters of credit are subject to reimbursement by AIG in the event of a drawdown by these insurance subsidiaries. Following closing, in the second quarter of 2020, AIG contributed $ 700 million of the proceeds of the Majority Interest Fortitude Sale to certain of its General Insurance subsidiaries and $ 135 million of the proceeds of the Majority Interest Fortitude Sale to certain of its Life and Retirement subsidiaries. For further discussion on the sale of Fortitude Holdings see Note 7 to the Condensed Consolidated Financial Statements . Blackboard At the end of March 2020, Blackboard U.S. Holdings, Inc. (Blackboard), AIG’s technology-driven subsidiary, was placed into run-off. As a result of this decision, during the three months ended March 31, 2020, AIG recognized a pre-tax loss of $ 210 million, primarily consisting of asset impairment charges. Life and Retirement On October 26, 2020, AIG announced its intention to separate its Life and Retirement business from AIG. Any separation transaction will be subject to the satisfaction of various conditions and approvals, including approval by the AIG Board of Directors, receipt of insurance and other required regulatory approvals, and satisfaction of any applicable requirements of the Securities and Exchange Commission (SEC). While we currently believe an initial public offering represents an optimal path, no assurance can be given regarding the form that a separation transaction may take or the specific terms or timing thereof, or that a separation will in fact occur. Sale of Certain AIG Life and Retirement Retail Mutual Funds Business On February 8, 2021, we announced we entered into a definitive agreement with Touchstone Investments (Touchstone), an indirect wholly-owned subsidiary of Western & Southern Financial Group, to sell certain assets of AIG Life and Retirement’s Retail Mutual Funds business. As of March 31, 2021, AIG Life and Retirement’s Retail Mutual Funds business managed $ 7.6 billion in assets across eighteen funds. Pursuant to the definitive agreement, twelve retail mutual funds with $ 7.4 billion in assets will be reorganized into Touchstone funds. The transaction closing is subject to customary regulatory and fund shareholder approvals and is targeted for mid-2021. Six retail mutual funds with $ 0.2 billion in assets, excluding fund of funds, managed by AIG Life and Retirement and not included in the transaction will be wound down and liquidated. AIG Life and Retirement will retain its fund management platform and capabilities dedicated to its variable insurance products. 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, for example universal life, variable and fixed annuities, and fixed indexed annuities; reinsurance assets, including the allowance for credit losses; goodwill impairment; allowances for credit losses primarily on loans and available for sale fixed maturity securities; 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 Cuts and Jobs Act (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. REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS During the fourth quarter of 2020, we identified certain cash flows that had been incorrectly classified in our Consolidated Statements of Cash Flows. Specifically, misclassifications were identified related to policyholder contract deposits that impacted several line items within the previously issued Consolidated Statements of Cash Flows. While these items affect the cash flows from operating and financing activities, they had no impact on the net increase (decrease) in cash and restricted cash for the previously reported periods. We assessed the materiality of the misclassification on prior period financial statements in accordance with SEC Staff Accounting Bulletin Number 99, Materiality, as codified in ASC 250-10, Accounting Changes and Error Corrections. We have determined that these misclassifications were not material to the financial statements of any prior annual or interim period. Accordingly, the three-month period ended March 31, 2020 has been corrected in the comparative Condensed Consolidated Statements of Cash Flows. Additionally, impacted prior interim periods will be revised within the Quarterly Reports on Form 10-Q to be filed for the periods ending June 30, 2021 and September 30, 2021. For the three months ended March 31, 2020, the unrealized (gains) losses in earnings – net and Insurance reserves line items in the Consolidated Statements of Cash Flows were adjusted by $( 648) million and $ 76 million, respectively. The total net cash provided by (used in) operating activities was adjusted by $( 572) million. Additionally, the Policyholder contract deposits and Policyholder contract withdrawals line items in the Consolidated Statements of Cash Flows were adjusted by $ 782 million and $( 210) million, respectively. The total net cash provided by financing activities was adjusted by $ 572 million. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. Summary of Significant Accounting Policies Accounting Standards Adopted During 2021 Income Tax On December 18, 2019, the FASB issued an accounting standard that simplifies the accounting for income taxes by eliminating certain exceptions to the incremental 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. We adopted the standard on its effective date of January 1, 2021. The impact of adoption was not material to our consolidated financial condition, results of operations and cash flows. Clarification of Accounting for Certain Equity Method Investments On January 16, 2020, the FASB issued an accounting standard to clarify how a previously issued standard regarding a company’s ability to measure the fair value of certain equity securities without a readily determinable fair value should interact with equity method investments standards. The previously issued standard provides that such equity securities could be measured at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs (measurement alternative). The new standard clarifies that a company should consider observable transactions that require the company to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with the equity method immediately before applying or upon discontinuing the equity method. The standard further clarifies that, when determining the accounting for certain forward contracts and purchased options a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. We adopted the standard prospectively on its effective date of January 1, 2021. The adoption of the standard did not have a material impact on our consolidated financial condition, results of operations or cash flows. Future Application of Accounting Standards 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 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 November 2020, the FASB issued ASU 2020-11, which deferred the effective date of the standard for all entities. Our implementation efforts are underway for the standard’s revised effective date of January 1, 2023; we continue to evaluate 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. Reference Rate Reform On March 12, 2020, the FASB issued an accounting standard that provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The standard allows us to account for certain contract modifications that result from the discontinuation of the London Inter-Bank Offered Rate (LIBOR) or another reference rate as a continuation of the existing contract without additional analysis. Where permitted by the guidance, we would account for the modification due to the discontinuation of LIBOR or another reference rate as a continuation of the existing contract. As part of our implementation efforts, we will continue to assess our operational readiness and current and alternative reference rates’ merits, limitations, risks and suitability for our investment and insurance processes. This standard may be elected and applied prospectively over time from March 12, 2020 through December 31, 2022 as reference rate reform activities occur. The adoption of the standard is not expected to have a material impact on our reported consolidated financial condition, results of operations, cash flows and required disclosures. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2021 | |
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, and our global reinsurance business, AIG Re. This also includes the results of Western World Insurance Group, Inc. and Glatfelter Insurance Group. International – consists of regional insurance businesses in Japan, the United Kingdom, Europe, Middle East and Africa (EMEA region), Asia Pacific, Latin America and Caribbean, and China. International also includes the results of Talbot Holdings, Ltd. as well as AIG’s Global Specialty business. North America and International operating segments consist of the following products: – Commercial Lines – consists of Liability, Financial Lines, Property and Global Specialty. – Personal Insurance – consists of Personal Lines and Accident & 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, financial planning and advisory services, and plan administrative and compliance 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, high net worth products and guaranteed investment contracts (GICs). On October 26, 2020, AIG announced its intention to separate its Life and Retirement business from AIG. On February 8, 2021, we announced we entered into a definitive agreement with Touchstone, an indirect wholly-owned subsidiary of Western & Southern Financial Group, to sell certain assets of AIG Life and Retirement’s Retail Mutual Funds business. For further discussion on these transactions, see Note 1 to the Condensed Consolidated Financial Statements. Other Operations Other Operations primarily consists of income from assets held by AIG Parent and other corporate subsidiaries, deferred tax assets related to tax attributes, corporate expenses and intercompany eliminations, our institutional asset management business and results of our consolidated investment entities, General Insurance portfolios in run-off as well as the historical results of our legacy insurance lines ceded to Fortitude Re. 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. Legal entities are attributed to each segment based upon the predominance of activity in that legal entity. 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: Three Months Ended March 31, 2021 2020 Adjusted Adjusted Adjusted Pre-tax Adjusted Pre-tax (in millions) Revenues Income (Loss) Revenues Income (Loss) General Insurance North America $ 2,388 $ ( 202) (a) $ 2,731 $ ( 103) (a) International 3,478 275 (a) 3,348 16 (a) Net investment income 772 772 588 588 Total General Insurance 6,638 845 6,667 501 Life and Retirement Individual Retirement 1,477 532 1,368 305 Group Retirement 806 307 694 143 Life Insurance 1,333 ( 40) 1,200 78 Institutional Markets 364 142 1,024 75 Total Life and Retirement 3,980 941 4,286 601 Other Operations Other Operations before consolidation and eliminations 324 ( 354) 315 ( 835) AIG consolidation and eliminations ( 180) ( 176) ( 141) ( 87) Total Other Operations 144 ( 530) 174 ( 922) Total 10,762 1,256 11,127 180 Reconciling items to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 18 22 14 ( 7) Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - ( 203) - ( 538) Changes in the fair value of equity securities 22 22 ( 191) ( 191) Other income (expense) - net ( 6) - 10 - Gain (loss) on extinguishment of debt - 8 - ( 17) Net investment income on Fortitude Re funds withheld assets 486 486 - - Net realized capital gains on Fortitude Re funds withheld assets 173 173 - - Net realized capital gains on Fortitude Re funds withheld embedded derivative 2,382 2,382 - - Net realized capital gains (b) 617 627 3,477 3,494 Income (loss) from divested businesses - 7 - ( 216) Non-operating litigation reserves and settlements - - 6 6 Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - 19 - 8 Net loss reserve discount benefit (charge) - 32 - ( 56) Integration and transaction costs associated with acquiring or divesting businesses - ( 9) - ( 2) Restructuring and other costs - ( 74) - ( 90) Non-recurring costs related to regulatory or accounting changes - ( 20) - ( 13) Revenues and pre-tax income $ 14,454 $ 4,728 $ 14,443 $ 2,558 (a) General Insurance North America’s and General Insurance International’s Adjusted pre-tax income does not include Net investment income as the investment portfolio results are managed at the General Insurance level. Net investment income is shown separately as a component of General Insurance’s total Adjusted pre-tax income results. (b) 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 and net realized gains and losses on Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets). |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 4. Fair Value Measurements Fair Value Measurements on a Recurring Basis Assets and liabilities recorded at fair value in the Condensed 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. 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: March 31, 2021 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 $ 32 $ 3,945 $ - $ - $ - $ 3,977 Obligations of states, municipalities and political subdivisions - 13,243 1,896 - - 15,139 Non-U.S. governments 115 15,066 6 - - 15,187 Corporate debt - 162,314 2,570 - - 164,884 RMBS - 18,644 11,464 - - 30,108 CMBS - 14,045 1,104 - - 15,149 CDO/ABS - 8,966 9,602 - - 18,568 Total bonds available for sale 147 236,223 26,642 - - 263,012 Other bond securities: U.S. government and government sponsored entities - 1,751 - - - 1,751 Non-U.S. governments - - - - - - Corporate debt - 12 - - - 12 RMBS - 256 126 - - 382 CMBS - 268 46 - - 314 CDO/ABS - 168 2,346 - - 2,514 Total other bond securities - 2,455 2,518 - - 4,973 Equity securities 1,012 20 128 - - 1,160 Other invested assets (b) - 101 1,897 - - 1,998 Derivative assets (c) Interest rate contracts 2 3,622 - - - 3,624 Foreign exchange contracts - 1,068 1 - - 1,069 Equity contracts 2 341 237 - - 580 Credit contracts - - 1 - - 1 Other contracts - - 13 - - 13 Counterparty netting and cash collateral - - - ( 3,080) ( 1,314) ( 4,394) Total derivative assets 4 5,031 252 ( 3,080) ( 1,314) 893 Short-term investments 2,029 2,397 - - - 4,426 Other assets - - 113 - - 113 Separate account assets 98,876 3,813 - - - 102,689 Total $ 102,068 $ 250,040 $ 31,550 $ ( 3,080) $ ( 1,314) $ 379,264 Liabilities: Policyholder contract deposits $ - $ - $ 7,617 $ - $ - $ 7,617 Derivative liabilities (c) Interest rate contracts - 4,904 - - - 4,904 Foreign exchange contracts - 853 1 - - 854 Equity contracts 13 57 15 - - 85 Credit contracts - 20 45 - - 65 Other contracts - - 4 - - 4 Counterparty netting and cash collateral - - - ( 3,080) ( 2,129) ( 5,209) Total derivative liabilities 13 5,834 65 ( 3,080) ( 2,129) 703 Fortitude Re funds withheld payable - - 3,487 - - 3,487 Other liabilities - - - - - - Long-term debt - 2,015 - - - 2,015 Total $ 13 $ 7,849 $ 11,169 $ ( 3,080) $ ( 2,129) $ 13,822 December 31, 2020 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 $ 73 $ 4,053 $ - $ - $ - $ 4,126 Obligations of states, municipalities and political subdivisions - 14,019 2,105 - - 16,124 Non-U.S. governments 28 15,312 5 - - 15,345 Corporate debt - 166,949 2,349 - - 169,298 RMBS - 19,771 11,694 - - 31,465 CMBS - 15,211 922 - - 16,133 CDO/ABS - 9,191 9,814 - - 19,005 Total bonds available for sale 101 244,506 26,889 - - 271,496 Other bond securities: U.S. government and government sponsored entities - 1,845 - - - 1,845 Non-U.S. governments - - - - - - Corporate debt - 12 - - - 12 RMBS - 290 139 - - 429 CMBS - 273 47 - - 320 CDO/ABS - 173 2,512 - - 2,685 Total other bond securities - 2,593 2,698 - - 5,291 Equity securities 929 76 51 - - 1,056 Other invested assets (b) - 102 1,827 - - 1,929 Derivative assets (c) Interest rate contracts - 4,637 - - - 4,637 Foreign exchange contracts - 1,020 2 - - 1,022 Equity contracts 9 923 198 - - 1,130 Credit contracts - - 2 - - 2 Other contracts - - 14 - - 14 Counterparty netting and cash collateral - - - ( 3,812) ( 2,219) ( 6,031) Total derivative assets 9 6,580 216 ( 3,812) ( 2,219) 774 Short-term investments 2,379 3,589 - - - 5,968 Other assets - - 113 - - 113 Separate account assets 96,560 3,730 - - - 100,290 Total $ 99,978 $ 261,176 $ 31,794 $ ( 3,812) $ ( 2,219) $ 386,917 Liabilities: Policyholder contract deposits $ - $ - $ 9,798 $ - $ - $ 9,798 Derivative liabilities (c) Interest rate contracts 1 4,435 - - - 4,436 Foreign exchange contracts - 1,090 - - - 1,090 Equity contracts 14 162 47 - - 223 Credit contracts - 23 44 - - 67 Other contracts - - 6 - - 6 Counterparty netting and cash collateral - - - ( 3,812) ( 1,441) ( 5,253) Total derivative liabilities 15 5,710 97 ( 3,812) ( 1,441) 569 Fortitude Re funds withheld payable - - 6,042 - - 6,042 Other liabilities - 1 - - - 1 Long-term debt - 2,097 - - - 2,097 Total $ 15 $ 7,808 $ 15,937 $ ( 3,812) $ ( 1,441) $ 18,507 (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 $ 6.7 billion and $ 6.5 billion as of March 31, 2021 and December 31, 2020, respectively. (c) Presented as part of Other assets and Other liabilities on the Condensed Consolidated Balance Sheets. Changes in Level 3 Recurring Fair Value Measurements The following tables present changes during the three-month periods ended March 31, 2021 and 2020 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 Condensed Consolidated Balance Sheets at March 31, 2021 and 2020: Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive Gains Issuances (Losses) Included Income (Loss) for Fair Value (Losses) Other and Gross Gross Reclassification Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers of Held End Instruments Held Instruments Held (in millions) of Period in Income Income (Loss) Net In Out for Sale of Period at End of Period at End of Period Three Months Ended March 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,105 $ 3 $ ( 159) $ ( 53) $ - $ - $ - $ 1,896 $ - $ ( 10) Non-U.S. governments 5 - - - 1 - - 6 - - Corporate debt 2,349 ( 1) ( 10) 177 187 ( 132) - 2,570 - ( 159) RMBS 11,694 167 64 ( 431) - ( 30) - 11,464 - ( 14) CMBS 922 9 ( 56) 173 56 - - 1,104 - ( 56) CDO/ABS 9,814 16 ( 14) ( 164) 454 ( 504) - 9,602 - 64 Total bonds available for sale 26,889 194 ( 175) ( 298) 698 ( 666) - 26,642 - ( 175) Other bond securities: RMBS 139 3 - ( 16) - - - 126 ( 98) - CMBS 47 ( 1) - ( 6) 6 - - 46 ( 2) - CDO/ABS 2,512 ( 11) - ( 155) - - - 2,346 2 - Total other bond securities 2,698 ( 9) - ( 177) 6 - - 2,518 ( 98) - Equity securities 51 11 3 ( 11) 75 ( 1) - 128 3 - Other invested assets 1,827 142 ( 6) ( 66) - - - 1,897 123 - Other assets 113 - - - - - - 113 - - Total $ 31,578 $ 338 $ ( 178) $ ( 552) $ 779 $ ( 667) $ - $ 31,298 $ 28 $ ( 175) Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive (Gains) Issuances (Losses) Included Income (Loss) for Fair Value Losses Other and Gross Gross Reclassification Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers of Held End Instruments Held Instruments Held (in millions) of Period in Income Income (Loss) Net In Out for Sale of Period at End of Period at End of Period Liabilities: Policyholder contract deposits $ 9,798 $ ( 2,260) $ - $ 79 $ - $ - $ - $ 7,617 $ 2,570 $ - Derivative liabilities, net: Interest rate contracts - - - - - - - - - - Foreign exchange contracts ( 2) 1 - 1 - - - - ( 1) - Equity contracts ( 151) ( 26) - ( 85) - 40 - ( 222) ( 118) - Credit contracts 42 5 - ( 3) - - - 44 ( 3) - Other contracts ( 8) ( 17) - 16 - - - ( 9) 16 - Total derivative liabilities, net (a) ( 119) ( 37) - ( 71) - 40 - ( 187) ( 106) - Fortitude Re funds withheld payable 6,042 ( 2,382) - ( 173) - - - 3,487 2,955 - Total $ 15,721 $ ( 4,679) $ - $ ( 165) $ - $ 40 $ - $ 10,917 $ 5,419 $ - Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive Gains Issuances (Losses) Included Income (Loss) for Fair Value (Losses) Other and Gross Gross Reclassification Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers of Held End Instruments Held Instruments Held (in millions) of Period in Income Income (Loss) Net In Out for Sale of Period at End of Period at End of Period Three Months Ended March 31, 2020 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,121 $ 5 $ ( 55) $ 137 $ 27 $ ( 133) $ - $ 2,102 $ - $ ( 51) Non-U.S. governments - - - - 6 - - 6 - - Corporate debt 1,663 ( 67) ( 81) 7 103 ( 410) - 1,215 - ( 29) RMBS 13,408 132 ( 1,623) ( 223) 19 ( 26) - 11,687 - ( 1,505) CMBS 1,053 7 19 44 23 - - 1,146 - 21 CDO/ABS 7,686 17 ( 557) 47 1,603 ( 28) - 8,768 - ( 536) Total bonds available for sale 25,931 94 ( 2,297) 12 1,781 ( 597) - 24,924 - ( 2,100) Other bond securities: RMBS 143 ( 14) - 20 - - - 149 ( 14) - CMBS 50 ( 7) - ( 1) - - - 42 ( 8) - CDO/ABS 3,545 ( 173) - ( 994) - - - 2,378 ( 262) - Total other bond securities 3,738 ( 194) - ( 975) - - - 2,569 ( 284) - Equity securities 8 ( 1) 1 10 1 - - 19 - - Other invested assets 1,192 ( 4) - 129 150 - - 1,467 14 - Other assets 89 - - 5 - - ( 3) 91 - - Total $ 30,958 $ ( 105) $ ( 2,296) $ ( 819) $ 1,932 $ ( 597) $ ( 3) $ 29,070 $ ( 270) $ ( 2,100) Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive (Gains) Issuances (Losses) Included Income (Loss) for Fair Value Losses Other and Gross Gross Reclassification Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers of Held End Instruments Held Instruments Held (in millions) of Period in Income Income (Loss) Net In Out for Sale of Period at End of Period at End of Period Liabilities: Policyholder contract deposits $ 6,910 $ 1,171 $ - $ 72 $ - $ - $ - $ 8,153 $ ( 884) $ - Derivative liabilities, net: Interest rate contracts - - - - - - - - - - Foreign exchange contracts ( 6) 3 - 6 - - - 3 1 - Equity contracts ( 151) ( 26) - 34 - - - ( 143) ( 14) - Credit contracts 62 ( 124) - ( 14) - - - ( 76) 118 - Other contracts ( 7) ( 10) - 15 - - - ( 2) 10 - Total derivative liabilities, net (a) ( 102) ( 157) - 41 - - - ( 218) 115 - Total $ 6,808 $ 1,014 $ - $ 113 $ - $ - $ - $ 7,935 $ ( 769) $ - (a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities shown above are reported in the Condensed Consolidated Statements of Income as follows: Net Net Realized Investment Capital Other (in millions) Income Gains (Losses) Income Total Three Months Ended March 31, 2021 Assets: Bonds available for sale $ 185 $ 9 $ - $ 194 Other bond securities ( 31) 22 - ( 9) Equity securities 11 - - 11 Other invested assets 142 - - 142 Three Months Ended March 31, 2020 Assets: Bonds available for sale $ 198 $ ( 104) $ - $ 94 Other bond securities ( 462) 268 - ( 194) Equity securities - ( 1) - ( 1) Other invested assets ( 4) - - ( 4) Net Net Realized Investment Capital Other (in millions) Income (Gains) Losses Income Total Three Months Ended March 31, 2021 Liabilities: Policyholder contract deposits * $ - $ ( 2,260) $ - $ ( 2,260) Derivative liabilities, net - ( 23) ( 14) ( 37) Fortitude Re funds withheld payable - ( 2,382) - ( 2,382) Three Months Ended March 31, 2020 Liabilities: Policyholder contract deposits * $ - $ 1,171 $ - $ 1,171 Derivative liabilities, net - ( 143) ( 14) ( 157) * Primarily embedded derivatives. The following table presents the gross components of purchases, sales, issuances and settlements, net, shown above, for the three-month periods ended March 31, 2021 and 2020 related to Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets: Issuances Purchases, Sales, and Issuances and (in millions) Purchases Sales Settlements (a) Settlements, Net (a) Three Months Ended March 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 8 $ ( 20) $ ( 41) $ ( 53) Non-U.S. governments - - - - Corporate debt 741 ( 1) ( 563) 177 RMBS 164 - ( 595) ( 431) CMBS 193 - ( 20) 173 CDO/ABS 376 ( 49) ( 491) ( 164) Total bonds available for sale 1,482 ( 70) ( 1,710) ( 298) Other bond securities: RMBS - - ( 16) ( 16) CMBS - ( 6) - ( 6) CDO/ABS - ( 39) ( 116) ( 155) Total other bond securities - ( 45) ( 132) ( 177) Equity securities - - ( 11) ( 11) Other invested assets 198 - ( 264) ( 66) Other assets - - - - Total assets $ 1,680 $ ( 115) $ ( 2,117) $ ( 552) Liabilities: Policyholder contract deposits $ - $ 191 $ ( 112) $ 79 Derivative liabilities, net ( 52) 1 ( 20) ( 71) Fortitude Re funds withheld payable - - ( 173) ( 173) Total liabilities $ ( 52) $ 192 $ ( 305) $ ( 165) Three Months Ended March 31, 2020 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 145 $ ( 2) $ ( 6) $ 137 Non-U.S. governments - - - - Corporate debt 112 ( 5) ( 100) 7 RMBS 336 - ( 559) ( 223) CMBS 53 ( 2) ( 7) 44 CDO/ABS 225 ( 22) ( 156) 47 Total bonds available for sale 871 ( 31) ( 828) 12 Other bond securities: RMBS 25 - ( 5) 20 CMBS - - ( 1) ( 1) CDO/ABS 35 ( 579) ( 450) ( 994) Total other bond securities 60 ( 579) ( 456) ( 975) Equity securities 10 - - 10 Other invested assets 174 - ( 45) 129 Other assets - - 5 5 Total assets $ 1,115 $ ( 610) $ ( 1,324) $ ( 819) Liabilities: Policyholder contract deposits $ - $ 222 $ ( 150) $ 72 Derivative liabilities, net ( 15) 8 48 41 Total liabilities $ ( 15) $ 230 $ ( 102) $ 113 (a) There were no issuances during the three-month periods ended March 31, 2021 and 2020. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at March 31, 2021 and 2020 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities). Transfers of Level 3 Assets and Liabilities The Net realized and unrealized gains (losses) included in income (loss) or Other comprehensive income (loss) as shown in the table above excludes $ 19 million and $( 156) million of net gains (losses) related to assets and liabilities transferred into Level 3 during the three-month periods ended March 31, 2021 and 2020, respectively, and includes $( 4) million and $( 55) million of net gains (losses) related to assets and liabilities transferred out of Level 3 during the three-month periods ended March 31, 2021 and 2020, respectively. Transfers of Level 3 Assets During the three-month periods ended March 31, 2021 and 2020, transfers into Level 3 assets primarily included certain investments in private placement corporate debt, RMBS, CMBS and CDO/ABS. Transfers of private placement corporate debt and certain ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity. The transfers of investments in RMBS, CMBS and CDO and certain ABS into Level 3 assets were due to diminished market transparency and liquidity for individual security types. During the three-month periods ended March 31, 2021 and 2020, transfers out of Level 3 assets primarily included private placement and other corporate debt, CMBS, RMBS, CDO/ABS and certain investments in municipal securities. Transfers of corporate debt, RMBS, CMBS, CDO/ABS and certain investments in municipal securities out of Level 3 assets were based on consideration of market liquidity as well as related transparency of pricing and associated observable inputs for these investments. Transfers of certain investments in private placement corporate debt and certain ABS out of Level 3 assets were primarily the result of using observable pricing information that reflects the fair value of those securities without the need for adjustment based on our own assumptions regarding the characteristics of a specific security or the current liquidity in the market. Transfers of Level 3 Liabilities There were no significant transfers of derivative or other liabilities into or out of Level 3 for the three-month periods ended March 31, 2021 and 2020. QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and includes only those instruments for which information about the inputs is reasonably available to us, such as data from independent third-party valuation service providers. Because input information from third-parties with respect to certain Level 3 instruments (primarily CDO/ABS) may not be reasonably available to us, balances shown below may not equal total amounts reported for such Level 3 assets and liabilities: Fair Value at March 31, Valuation Range (in millions) 2021 Technique Unobservable Input (b) (Weighted Average) (c) Assets: Obligations of states, municipalities and political subdivisions $ 1,504 Discounted cash flow Yield 3.22% - 3.82% ( 3.52%) Corporate debt 1,682 Discounted cash flow Yield 2.29% - 7.33% ( 4.81%) RMBS (a) 10,933 Discounted cash flow Constant prepayment rate 3.75% - 14.76% ( 9.26%) Loss severity 28.90% - 75.98% ( 52.44%) Constant default rate 1.19% - 7.62% ( 4.41%) Yield 1.73% - 4.13% ( 2.93%) CDO/ABS (a) 8,361 Discounted cash flow Yield 1.95% - 4.82% ( 3.38%) CMBS 556 Discounted cash flow Yield 1.44% - 6.30% ( 3.83%) Liabilities (d) Embedded derivatives within Policyholder contract deposits: Variable annuity guaranteed minimum withdrawal benefits (GMWB) 1,884 Discounted cash flow Equity volatility 6.35% - 50.15% Base lapse rate 0.16% - 12.60% Dynamic lapse multiplier 50.00% - 143.00% Mortality multiplier (e) 38.00% - 147.00% Utilization 90.00% - 100.00% Equity / interest rate correlation 20.00% - 40.00% NPA (f) 0.10% - 1.38% Index annuities including certain GMWB 5,076 Discounted cash flow Lapse rate 0.38% - 50.00% Mortality multiplier (e) 24.00% - 180.00% Utilization (g) 80.00% - 100.00% Option budget 0.00% - 4.00% NPA (f) 0.10% - 1.38% Indexed life 614 Discounted cash flow Base lapse rate 0.00% - 37.97% Mortality rate 0.00% - 100.00% NPA (f) 0.10% - 1.38% Fair Value at December 31, Valuation Range (in millions) 2020 Technique Unobservable Input (b) (Weighted Average) (c) Assets: Obligations of states, municipalities and political subdivisions $ 1,670 Discounted cash flow Yield 2.82% - 3.39% ( 3.11%) Corporate debt 1,591 Discounted cash flow Yield 2.13% - 7.82% ( 4.97%) RMBS (a) 11,297 Discounted cash flow Constant prepayment rate 3.90% - 11.99% ( 7.94%) Loss severity 30.08% - 78.49% ( 54.29%) Constant default rate 1.45% - 6.19% ( 3.82%) Yield 1.69% - 4.25% ( 2.97%) CDO/ABS (a) 8,324 Discounted cash flow Yield 1.93% - 4.85% ( 3.39%) CMBS 541 Discounted cash flow Yield 0.92% - 5.89% ( 3.40%) Liabilities (d) Embedded derivatives within Policyholder contract deposits: GMWB 3,572 Discounted cash flow Equity volatility 6.45% - 50.85% Base lapse rate 0.16% - 12.60% Dynamic lapse multiplier 50.00% - 143.00% Mortality multiplier (e) 38.00% - 147.00% Utilization 90.00% - 100.00% Equity / interest rate correlation 20.00% - 40.00% NPA (f) 0.06% - 1.48% Index annuities including certain GMWB 5,538 Discounted cash flow Lapse rate 0.38% - 50.00% Mortality multiplier (e) 24.00% - 180.00% Utilization (g) 80.00% - 100.00% Option budget 0.00% - 4.00% NPA (f) 0.06% - 1.48% Indexed life 649 Discounted cash flow Base lapse rate 0.00% - 37.97% Mortality rate 0.00% - 100.00% NPA (f) 0.06% - 1.48% (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) The weighted averaging for fixed maturity securities is based on the estimated fair value of the securities. Because the valuation methodology for embedded derivatives within Policyholder contract deposits uses a range of inputs that vary at the contract level over the cash flow projection period, management believes that presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (d) The Fortitude Re funds withheld payable has been excluded from the above table. As discussed in Note 7, the Fortitude Re funds withheld payable is created through modified coinsurance (modco) and funds withheld reinsurance arrangements where the investments supporting the reinsurance agreements are withheld by, and continue to reside on AIG’s balance sheet. This embedded derivative is valued as a total return swap with reference to the fair value of the invested assets held by AIG. Accordingly, the unobservable inputs utilized in the valuation of the embedded derivative are a component of the invested assets supporting the reinsurance agreements that are held on AIG’s balance sheet. (e) Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table. (f) The non-performance risk adjustment (NPA) applied as a spread over risk-free curve for discounting. (g) The partial withdrawal utilization unobservable input range shown applies only to policies with guaranteed minimum withdrawal benefit riders that are accounted for as an embedded derivative. The total embedded derivative liability at March 31, 2021 and December 31, 2020 was approximately $ 694 million and $ 726 million, respectively. The remaining guaranteed minimum riders on the index annuities are valued under the accounting guidance for certain nontraditional long-duration contracts. The ranges of reported inputs for Obligations of states, municipalities and political subdivisions, Corporate debt, RMBS, CDO/ABS, and CMBS valued using a discounted cash flow technique consist of one standard deviation in either direction from the value-weighted average. The preceding table does not give effect to our risk management practices that might offset risks inherent in these Level 3 assets and liabilities. Interrelationships between Unobservable Inputs We consider unobservable inputs to be those for which market data is not available and that are developed using the best information available to us about the assumptions that market participants would use when pricing the asset or liability. Relevant inputs vary depending on the nature of the instrument being measured at fair value. The following paragraphs provide a general description of significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. In practice, simultaneous changes in assumptions may not always have a linear effect on the inputs discussed below. Interrelationships may also exist between observable and unobservable inputs. Such relationships have not been included in the discussion below. For each of the individual relationships described below, the inverse relationship would also generally apply. Fixed Maturity Securities The significant unobservable input used in the fair value measurement of fixed maturity securities is yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. The yield may be affected by other factors including constant prepayment rates, loss severity, and constant default rates. In general, increases in the yield would decrease the fair value of investments, and conversely, decreases in the yield would increase the fair value of investments. Embedded derivatives within Policyholder contract deposits Embedded derivatives reported within Policyholder contract deposits include interest crediting rates based on market indices within index annuities, indexed life, and GICs as well as GMWB within variable annuity and certain index annuity products. For any given contract, assumptions for unobservable inputs vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. The following unobservable inputs are used for valuing embedded derivatives measured at fair value: Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. Increases in assumed volatility will generally increase the fair value of both the projected cash flows from rider fees as well as the projected cash flows related to benefit payments. Therefore, the net change in the fair value of the liability may be either a decrease or an increase, depending on the relative changes in projected rider fees and projected benefit payments. Equity / interest rate correlation estimates the relationship between changes in equity returns and interest rates in the economic scenario generator used to value our GMWB embedded derivatives. In general, a higher positive correlation assumes that equity markets and interest rates move in a more correlated fashion, which generally increases the fair value of the liability. Base lapse rate assumptions are determined by company experience and are adjusted at the contract level using a dynamic lapse function, which reduces the base lapse rate when the contract is in-the-money (when the contract holder’s guaranteed value, as estimated by the company, is worth more than their underlying account value). Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. Increases in assumed lapse rates will generally decrease the fair value of the liability, as fewer policyholders would persist to collect guaranteed withdrawal amounts. Mortality rate assumptions, which vary by age and gender, are based on company experience and include a mortality improvement assumption. Increases in assumed mortality rates will decrease the fair value of the liability, while lower mortality rate assumptions will generally increase the fair value of the liability, because guaranteed payments will be made for a longer period of time. Utilization assumptions estimate the timing when policyholders with a GMWB will elect to utilize their benefit and begin taking withdrawals. The assumptions may vary by the type of guarantee, tax-qualified status, the contract’s withdrawal history and the age of the policyholder. Utilization assumptions are based on company experience, which includes partial withdrawal behavior. Increases in assumed utilization rates will generally increase the fair value of the liability. Option budget estimates the expected long-term cost of options used to hedge exposures associated with equity price changes. The level of option budgets determines future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives. Embedded derivatives within reinsurance contracts The fair value of embedded derivatives associated with funds withheld reinsurance contracts is determined based upon a total return swap technique with reference to the fair value of the investments held by AIG related to AIG’s funds withheld payable. The fair value of the underlying assets is generally based on market observable inputs using industry standard valuation techniques. The valuation also requires certain significant inputs, which are generally not observable and accordingly, the valuation is considered Level 3 in the fair value hierarchy. Investments in Certain Entities Carried at Fair Value Using Net Asset Value Per Share The following table includes information related to our investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate net asset value per share (or its equivalent). For these investments, which are measured at fair value on a recurring basis, we use the net asset value per share to measure fair value. March 31, 2021 December 31, 2020 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 $ 1,950 $ 1,869 $ 1,752 $ 1,960 Real assets Investments in real estate properties, agricultural and infrastructure assets, including power plants and other energy producing assets 927 540 908 445 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 213 201 167 171 Growth equity Funds that make investments in established companies for the purpose of growing their businesses 782 59 703 55 Mezzanine Funds that make investments in the junior debt and equity securities of leveraged companies 393 184 400 155 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 733 378 683 365 Total private equity funds 4,998 3,231 4,613 3,151 Hedge funds: Event-driven Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations 429 - 411 - Long-short Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk 325 - 361 - Macro Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital ma |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2021 | |
INVESTMENTS | |
INVESTMENTS | 5. Investments Securities Available for Sale The following table presents the amortized cost or cost and fair value of our available for sale securities: Amortized Allowance Gross Gross Cost or for Credit Unrealized Unrealized Fair (in millions) Cost Losses (a) Gains Losses Value March 31, 2021 Bonds available for sale: U.S. government and government sponsored entities $ 3,810 $ - $ 216 $ ( 49) $ 3,977 Obligations of states, municipalities and political subdivisions 13,617 - 1,570 ( 48) 15,139 Non-U.S. governments 14,728 ( 4) 707 ( 244) 15,187 Corporate debt 155,051 ( 103) 12,143 ( 2,207) 164,884 Mortgage-backed, asset-backed and collateralized: RMBS 27,417 ( 14) 2,799 ( 94) 30,108 CMBS 14,556 ( 1) 687 ( 93) 15,149 CDO/ABS 18,259 - 377 ( 68) 18,568 Total mortgage-backed, asset-backed and collateralized 60,232 ( 15) 3,863 ( 255) 63,825 Total bonds available for sale (b) $ 247,438 $ ( 122) $ 18,499 $ ( 2,803) $ 263,012 December 31, 2020 Bonds available for sale: U.S. government and government sponsored entities $ 3,640 $ - $ 503 $ ( 17) $ 4,126 Obligations of states, municipalities and political subdivisions 13,915 - 2,216 ( 7) 16,124 Non-U.S. governments 14,231 ( 4) 1,181 ( 63) 15,345 Corporate debt 150,111 ( 164) 19,905 ( 554) 169,298 Mortgage-backed, asset-backed and collateralized: RMBS 28,551 ( 16) 3,000 ( 70) 31,465 CMBS 15,182 ( 1) 1,023 ( 71) 16,133 CDO/ABS 18,707 ( 1) 425 ( 126) 19,005 Total mortgage-backed, asset-backed and collateralized 62,440 ( 18) 4,448 ( 267) 66,603 Total bonds available for sale (b) $ 244,337 $ ( 186) $ 28,253 $ ( 908) $ 271,496 (a) Represents the allowance for credit losses that has been recognized. Changes in the allowance for credit losses are recorded through Net realized capital gains and losses and are not recognized in other comprehensive income. (b) At March 31, 2021 and December 31, 2020, bonds available for sale held by us that were below investment grade or not rated totaled $ 27.9 billion and $ 28.2 billion, respectively. Securities Available for Sale in a Loss Position for Which No Allowance for Credit Loss Has Been Recorded 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 for which no allowance for credit loss has been recorded: Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (in millions) Value Losses Value Losses Value Losses March 31, 2021 Bonds available for sale: U.S. government and government sponsored entities $ 1,111 $ 38 $ 28 $ 11 $ 1,139 $ 49 Obligations of states, municipalities and political subdivisions 1,107 43 102 5 1,209 48 Non-U.S. governments 4,091 192 307 46 4,398 238 Corporate debt 34,646 1,874 5,054 252 39,700 2,126 RMBS 4,772 71 457 16 5,229 87 CMBS 2,240 64 543 28 2,783 92 CDO/ABS 4,908 45 1,531 23 6,439 68 Total bonds available for sale $ 52,875 $ 2,327 $ 8,022 $ 381 $ 60,897 $ 2,708 December 31, 2020 Bonds available for sale: U.S. government and government sponsored entities $ 649 $ 17 $ - $ - $ 649 $ 17 Obligations of states, municipalities and political subdivisions 267 4 78 3 345 7 Non-U.S. governments 1,287 28 262 33 1,549 61 Corporate debt 11,715 348 1,283 81 12,998 429 RMBS 3,486 40 282 18 3,768 58 CMBS 1,644 58 346 12 1,990 70 CDO/ABS 5,456 81 3,063 45 8,519 126 Total bonds available for sale $ 24,504 $ 576 $ 5,314 $ 192 $ 29,818 $ 768 At March 31, 2021, we held 10,610 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 1,617 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). At December 31, 2020, we held 5,105 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 949 individual fixed maturity securities that 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 March 31, 2021 because it was determined that such losses were due to non-credit factors. Additionally, 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, liquidity position, expected defaults, industry and sector analysis, forecasts and 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 Amortized Cost, (in millions) Net of Allowance Fair Value March 31, 2021 Due in one year or less $ 9,296 $ 9,388 Due after one year through five years 43,463 44,991 Due after five years through ten years 43,447 46,215 Due after ten years 90,893 98,593 Mortgage-backed, asset-backed and collateralized 60,217 63,825 Total $ 247,316 $ 263,012 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: Three Months Ended March 31, 2021 2020 Gross Gross Gross Gross Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Fixed maturity securities $ 460 $ 71 $ 380 $ 166 For the three-month period ended March 31, 2021, the aggregate fair value of available for sale securities sold was $ 6.4 billion, which resulted in net realized capital gains of $ 389 million. Included within the net realized capital gains are $ 295 million of realized capital gains for the three-month period ended March 31, 2021, which relate to Fortitude Re funds withheld assets. These realized capital gains are included in Net realized capital gains (losses) on Fortitude Re funds withheld assets. For the three-month period ended March 31, 2020, the aggregate fair value of available for sale securities sold was $ 7.2 billion, which resulted in net realized capital gains of $ 214 million. 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, which are reported in the other bond securities caption in the financial statements, and equity securities measured at fair value: March 31, 2021 December 31, 2020 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 1,751 29 % $ 1,845 29 % Corporate debt 12 - 12 - Mortgage-backed, asset-backed and collateralized: RMBS 382 6 429 7 CMBS 314 5 320 5 CDO/ABS and other collateralized 2,514 41 2,685 42 Total mortgage-backed, asset-backed and collateralized 3,210 52 3,434 54 Total fixed maturity securities 4,973 81 5,291 83 Equity securities 1,160 19 1,056 17 Total $ 6,133 100 % $ 6,347 100 % Other Invested Assets The following table summarizes the carrying amounts of other invested assets: March 31, December 31, (in millions) 2021 2020 Alternative investments (a) (b) $ 9,589 $ 9,572 Investment real estate (c) 8,172 7,930 All other investments (d) 1,629 1,558 Total $ 19,390 $ 19,060 (a) At March 31, 2021, included hedge funds of $ 2.0 billion, private equity funds of $ 7.4 billion and affordable housing partnerships of $ 202 million. At December 31, 2020, included hedge funds of $ 2.3 billion, private equity funds of $ 7.0 billion and affordable housing partnerships of $ 257 million. (b) At March 31, 2021, approximately 65 percent of our hedge fund portfolio is available for redemption in 2021. The remaining 35 percent will be available for redemption between 2022 and 2027. (c) Net of accumulated depreciation of $ 775 million and $ 756 million at March 31, 2021 and December 31, 2020, respectively. (d) Includes AIG’s 3.5 percent ownership interest in Fortitude Holdings which is recorded using the measurement alternative for equity securities and is carried at cost, which was $ 100 million as of March 31, 2021 and December 31, 2020. Net Investment Income The following table presents the components of Net investment income: Three Months Ended March 31, 2021 2020 Excluding Fortitude Fortitude Re Re Funds Funds Withheld (in millions) Withheld Assets Assets Total Available for sale fixed maturity securities, including short-term investments $ 2,178 $ 377 $ 2,555 $ 2,609 Other fixed maturity securities (a) ( 102) - ( 102) ( 60) Equity securities 22 - 22 ( 191) Interest on mortgage and other loans 414 47 461 513 Alternative investments (b) 572 69 641 ( 59) Real estate 59 - 59 59 Other investments (c) 140 1 141 ( 215) Total investment income 3,283 494 3,777 2,656 Investment expenses 112 8 120 148 Net investment income $ 3,171 $ 486 $ 3,657 $ 2,508 (a) Included in the three-month periods ended March 31, 2021 and 2020 were losses of $ 81 million and income of $ 169 million, respectively, related to fixed maturity securities measured at fair value that economically hedge liabilities described in (c) below. (b) Included income from hedge funds, private equity funds and affordable housing partnerships. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag. (c) Included in the three-month periods ended March 31, 2021 and 2020 were income of $ 83 million and losses of $ 202 million, respectively, related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above. Net Realized Capital Gains and Losses The following table presents the components of Net realized capital gains: Three Months Ended March 31, 2021 2020 Excluding Fortitude Re Fortitude Re Funds Funds Withheld (in millions) Withheld Assets Assets Total Sales of fixed maturity securities $ 94 $ 295 $ 389 $ 214 Intent to sell - - - - Change in allowance for credit losses on fixed maturity securities 51 2 53 ( 198) Change in allowance for credit losses on loans 41 ( 5) 36 ( 38) Foreign exchange transactions ( 49) ( 6) ( 55) ( 254) Variable annuity embedded derivatives, net of related hedges 89 - 89 2,192 All other derivatives and hedge accounting 351 ( 117) 234 1,559 Other 118 4 122 44 Net realized capital gains – excluding Fortitude Re funds withheld embedded derivative 695 173 868 3,519 Net realized capital gains (losses) on Fortitude Re funds withheld embedded derivative - 2,382 2,382 - Net realized capital gains $ 695 $ 2,555 $ 3,250 $ 3,519 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: Three Months Ended March 31, (in millions) 2021 2020 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ ( 11,649) $ ( 10,455) Total increase (decrease) in unrealized appreciation (depreciation) of investments $ ( 11,649) $ ( 10,455) 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: Other Invested (in millions) Equities Assets Total Three Months Ended March 31, 2021 Net gains recognized during the period on equity securities $ 22 $ 470 $ 492 Less: Net gains (losses) recognized during the period on equity securities sold during the period ( 21) 24 3 Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 43 $ 446 $ 489 Three Months Ended March 31, 2020 Net losses recognized during the period on equity securities $ ( 191) $ ( 129) $ ( 320) Less: Net gains recognized during the period on equity securities sold during the period 12 2 14 Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ ( 203) $ ( 131) $ ( 334) Evaluating Investments for AN ALLOWANCE FOR CREDIT LOSSES 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 if the fair value of the security is below amortized cost, an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized capital losses. No allowance is established in these situations and any previously recorded allowance is reversed. The new cost basis is not adjusted for subsequent increases in estimated fair value . 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 decline in the fair value below the amortized cost is due to credit related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding charge to realized capital losses. The allowance for credit losses is limited to the difference between amortized cost and fair value. 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 associated with credit related factors is presented in unrealized appreciation (depreciation) of fixed maturity securities on which an allowance for credit losses was previously recognized (a separate component of AOCI). Accrued interest is excluded from the measurement of the allowance for credit losses. When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the 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. When estimating future cash flows for corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers: Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Scenarios specific to the issuer and the security, which may also include 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. Under the current expected credit loss (CECL) model, credit losses are reassessed each period. The allowance for credit losses and the corresponding charge to realized capital losses can be reversed if conditions change, however, the allowance for credit losses will never be reduced below zero. When we determine that all or a portion of a fixed maturity security is uncollectable, the uncollectable amortized cost amount is written off with a corresponding reduction to the allowance for credit losses. If we collect cash flows that were previously written off, the recovery is recognized by decreasing realized capital losses. Credit Impairments The following table presents a rollforward of the changes in allowance for credit losses on available for sale fixed maturity securities by major investment category: Three Months Ended March 31, 2021 2020 Non- Non- (in millions) Structured Structured Total Structured Structured Total Balance, beginning of year * $ 17 $ 169 $ 186 $ 7 $ - $ 7 Additions: Securities for which allowance for credit losses were not previously recorded 2 13 15 24 174 198 Purchases of available for sale debt securities accounted for as purchased credit deteriorated assets - - - 6 - 6 Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets - - - - - - Reductions: Securities sold during the period ( 1) ( 4) ( 5) - - - Intent to sell security or more likely than not will be required to sell the security before recovery of its amortized cost basis - - - - - - Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intent to sell before recovery amortized cost basis ( 4) ( 64) ( 68) - - - Write-offs charged against the allowance - ( 6) ( 6) - - - Recoveries of amounts previously written off - - - - - - Other - - - - - - Balance, end of period $ 14 $ 108 $ 122 $ 37 $ 174 $ 211 * The beginning balance incorporates the Day 1 gross up on purchased credit deteriorated (PCD) assets held as of January 1, 2020. Purchased Credit Deteriorated Securities We purchase certain RMBS securities that have experienced more-than-insignificant deterioration in credit quality since origination. Subsequent to the adoption of the Financial Instruments Credit Losses Standard, these are referred to as PCD assets. At the time of purchase an allowance is recognized for these PCD assets by adding it to the purchase price to arrive at the initial amortized cost. There is no credit loss expense recognized upon acquisition of a PCD asset. When determining the initial allowance for credit losses, management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the 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: • Current delinquency rates; • Expected default rates and the timing of such defaults; • Loss severity and the timing of any recovery; and • Expected prepayment speeds. Subsequent to the acquisition date, the PCD assets follow the same accounting as other structured securities that are not high credit quality. We did not purchase securities with more than insignificant credit deterioration since their origination during the three-month period ended March 31, 2021. Pledged Investments Secured Financing and Similar Arrangements We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. 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. The following table presents the fair value of securities pledged to counterparties under secured financing transactions, including repurchase and securities lending agreements: (in millions) March 31, 2021 December 31, 2020 Fixed maturity securities available for sale $ 3,552 $ 3,636 At both March 31, 2021 and December 31, 2020, amounts borrowed under repurchase and securities lending agreements totaled $ 3.7 billion. The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity: Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2021 Bonds available for sale: Non-U.S. governments $ 67 $ - $ - $ - $ - $ 67 Corporate debt 95 86 - - - 181 Total $ 162 $ 86 $ - $ - $ - $ 248 December 31, 2020 Bonds available for sale: Non-U.S. governments $ 63 $ - $ - $ - $ - $ 63 Corporate debt 96 97 - - - 193 Total $ 159 $ 97 $ - $ - $ - $ 256 The following table presents the fair value of securities pledged under our securities lending agreements by collateral type and by remaining contractual maturity: Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2021 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ 104 $ - $ - $ - $ 104 Non-U.S. governments - - 32 85 - 117 Corporate debt - 835 2,009 239 - 3,083 Total $ - $ 939 $ 2,041 $ 324 $ - $ 3,304 December 31, 2020 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ - $ 103 $ - $ - $ 103 Non-U.S. governments - - - - - - Corporate debt - 982 2,295 - - 3,277 Total $ - $ 982 $ 2,398 $ - $ - $ 3,380 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. The following table presents information on the fair value of securities pledged to us under reverse repurchase agreements: (in millions) March 31, 2021 December 31, 2020 Securities collateral pledged to us $ 3,407 $ 5,359 At March 31, 2021 and December 31, 2020, amounts pledged to us under reverse repurchase agreements totaled $ 3.4 billion and $ 5.4 billion, respectively. We do not currently offset any secured financing transactions. All such transactions are collateralized and margined on a daily basis consistent with market standards and subject to enforceable master netting arrangements with rights of set off. Insurance – Statutory and Other Deposits The total carrying value of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance contracts, was $ 11.0 billion and $ 11.2 billion at March 31, 2021 and December 31, 2020, respectively. Other Pledges and Restrictions Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs. We owned an aggregate of $ 209 million and $ 191 million of stock in FHLBs at March 31, 2021 and December 31, 2020, respectively. In addition, our subsidiaries have pledged securities available for sale and residential loans associated with borrowings and funding agreements from FHLBs, with a fair value of $ 6.0 billion and $ 1.1 billion, respectively, at March 31, 2021 and $ 5.7 billion and $ 1.2 billion, respectively, at December 31, 2020. Certain GIAs have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our long-term debt ratings. The actual amount of collateral required to be posted to the counterparties in the event of such downgrades, and the aggregate amount of payments that we could be required to make, depend on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. The fair value of securities pledged as collateral with respect to these obligations was approximately $ 1.5 billion at both March 31, 2021 and December 31, 2020. 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. Investments held in escrow accounts or otherwise subject to restriction as to their use were $ 516 million and $ 494 million, comprised of bonds available for sale and short-term investments at March 31, 2021 and December 31, 2020, respectively. Reinsurance transactions between AIG and Fortitude Re were structured as modco and loss portfolio transfer arrangements with funds withheld. Following closing of the Majority Interest Fortitude Sale, a portion of the proceeds were contributed to AIG subsidiaries. For further discussion on the sale of Fortitude Holdings see Note 1 and Note 7 to the Condensed Consolidated Financial Statements. |
LENDING ACTIVITIES
LENDING ACTIVITIES | 3 Months Ended |
Mar. 31, 2021 | |
LENDING ACTIVITIES | |
LENDING ACTIVITIES | 6. Lending Activities The following table presents the composition of Mortgage and other loans receivable, net: March 31, December 31, (in millions) 2021 2020 Commercial mortgages (a) $ 36,418 $ 36,424 Residential mortgages 4,159 4,645 Life insurance policy loans 1,949 1,986 Commercial loans, other loans and notes receivable 3,729 3,321 Total mortgage and other loans receivable 46,255 46,376 Allowance for credit losses (b) ( 787) ( 814) Mortgage and other loans receivable, net $ 45,468 $ 45,562 (a) 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 24 percent and 10 percent, respectively, at March 31, 2021 and 24 percent and 10 percent, respectively, at December 31, 2020). (b) Does not include allowance for credit losses of $ 70 million and $ 79 million, respectively, at March 31, 2021 and December 31, 2020, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities. 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. As of March 31, 2021, $ 8 million and $ 356 million of residential mortgage loans and commercial mortgage loans, respectively, were placed on nonaccrual status. As of December 31, 2020, $ 14 million and $ 238 million of residential mortgage loans and commercial mortgage loans, respectively, were placed on nonaccrual status. Accrued interest is presented separately and is included in Other assets on the Condensed Consolidated Balance Sheets. As of March 31, 2021, accrued interest receivable was $ 12 million and $ 134 million associated with residential mortgage loans and commercial mortgage loans, respectively. As of December 31, 2020, accrued interest receivable was $ 14 million and $ 129 million associated with residential mortgage loans and commercial mortgage loans, respectively. 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. Nonperforming loans are generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming loans were not significant for any of the periods presented. Credit Quality of Commercial Mortgages The following table presents debt service coverage ratios (a) March 31, 2021 (in millions) 2021 2020 2019 2018 2017 Prior Total >1.2X $ 514 $ 1,958 $ 5,346 $ 5,391 $ 3,861 $ 14,846 $ 31,916 1.00 - 1.20X - 871 769 610 182 1,261 3,693 <1.00X 91 - - 339 88 291 809 Total commercial mortgages $ 605 $ 2,829 $ 6,115 $ 6,340 $ 4,131 $ 16,398 $ 36,418 December 31, 2020 (in millions) 2020 2019 2018 2017 2016 Prior Total >1.2X $ 1,914 $ 5,596 $ 5,649 $ 3,941 $ 4,592 $ 10,730 $ 32,422 1.00 - 1.20X 770 467 456 144 161 1,106 3,104 <1.00X 4 86 343 87 96 282 898 Total commercial mortgages $ 2,688 $ 6,149 $ 6,448 $ 4,172 $ 4,849 $ 12,118 $ 36,424 The following table presents loan-to-value ratios (b) March 31, 2021 (in millions) 2021 2020 2019 2018 2017 Prior Total Less than 65% $ 51 $ 2,637 $ 3,552 $ 4,182 $ 2,671 $ 10,324 $ 23,417 65% to 75% 218 192 2,499 1,958 1,015 4,172 10,054 76% to 80% - - 45 - - 861 906 Greater than 80% 336 - 19 200 445 1,041 2,041 Total commercial mortgages $ 605 $ 2,829 $ 6,115 $ 6,340 $ 4,131 $ 16,398 $ 36,418 December 31, 2020 (in millions) 2020 2019 2018 2017 2016 Prior Total Less than 65% $ 2,382 $ 3,755 $ 3,855 $ 2,565 $ 2,852 $ 8,145 $ 23,554 65% to 75% 274 2,330 2,363 1,306 1,200 2,551 10,024 76% to 80% 28 45 30 - 70 515 688 Greater than 80% 4 19 200 301 727 907 2,158 Total commercial mortgages $ 2,688 $ 6,149 $ 6,448 $ 4,172 $ 4,849 $ 12,118 $ 36,424 (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 2.1X at March 31, 2021 and 2.2X at December 31, 2020. The debt service coverage ratios have been updated within the last three months. (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 59 percent at March 31, 2021 and was 60 percent at December 31, 2020. The loan-to-value ratios have been updated within the last three to nine months. 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 March 31, 2021 Credit Quality Performance Indicator: In good standing 678 $ 14,141 $ 10,433 $ 5,096 $ 3,708 $ 2,011 $ 462 $ 35,851 98 % Restructured (a) 9 - 141 50 - 136 - 327 1 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure 4 - 68 57 - 115 - 240 1 Total (b) 691 $ 14,141 $ 10,642 $ 5,203 $ 3,708 $ 2,262 $ 462 $ 36,418 100 % Allowance for credit losses $ 135 $ 270 $ 140 $ 48 $ 56 $ 13 $ 662 2 % December 31, 2020 Credit Quality Performance Indicator: In good standing 688 $ 13,969 $ 10,506 $ 5,144 $ 3,766 $ 2,064 $ 460 $ 35,909 99 % Restructured (a) 5 - 52 50 - 4 - 106 - 90 days or less delinquent 3 - 87 - - 114 - 201 - >90 days delinquent or in process of foreclosure 4 - 67 55 - 86 - 208 1 Total (b) 700 $ 13,969 $ 10,712 $ 5,249 $ 3,766 $ 2,268 $ 460 $ 36,424 100 % Allowance for credit losses $ 145 $ 267 $ 145 $ 53 $ 65 $ 10 $ 685 2 % (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 Note 7 to the Consolidated Financial Statements in the 2020 Annual Report. (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. The following table presents credit quality performance indicators for residential mortgages by year of vintage: March 31, 2021 (in millions) 2021 2020 2019 2018 2017 Prior Total FICO*: 780 and greater $ 111 $ 873 $ 568 $ 217 $ 357 $ 836 $ 2,962 720 - 779 74 280 163 79 111 250 957 660 - 719 2 47 37 14 30 71 201 600 - 659 - 1 3 3 2 17 26 Less than 600 - - 1 1 2 9 13 Total residential mortgages $ 187 $ 1,201 $ 772 $ 314 $ 502 $ 1,183 $ 4,159 December 31, 2020 (in millions) 2020 2019 2018 2017 2016 Prior Total FICO*: 780 and greater $ 522 $ 619 $ 283 $ 469 $ 539 $ 484 $ 2,916 720 - 779 478 349 103 155 180 156 1,421 660 - 719 19 61 28 42 51 58 259 600 - 659 1 5 6 7 4 12 35 Less than 600 - - 1 2 2 9 14 Total residential mortgages $ 1,020 $ 1,034 $ 421 $ 675 $ 776 $ 719 $ 4,645 * Fair Isaac Corporation (FICO) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last three months. Methodology Used to Estimate the Allowance for Credit Losses At the time of origination or purchase, an allowance for credit losses is established for mortgage and other loan receivables and is updated each reporting period. Changes in the allowance for credit losses are recorded in realized capital losses. This allowance reflects the risk of loss, even when that risk is remote, and reflects losses expected over the remaining contractual life of the loan. The allowance for credit losses considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts of future economic conditions. We revert to historical information when we determine that we can no longer reliably forecast future economic assumptions. The allowances for the commercial mortgage loans and residential mortgage loans are estimated utilizing a probability of default and loss given default model. Loss rate factors are determined based on historical data and adjusted for current and forecasted information. The loss rates are applied based on individual loan attributes and considering such data points as loan-to-value ratios, FICO scores, and debt service coverage. The estimate of credit losses also reflects management’s assumptions on certain macroeconomic factors that include, but are not limited to, gross domestic product growth, employment, inflation, housing price index, interest rates and credit spreads. Accrued interest is excluded from the measurement of the allowance for credit losses and accrued interest is reversed through interest income once a loan is placed on nonaccrual. 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. We also have off-balance sheet commitments related to our commercial mortgage loans. The liability for expected credit losses related to these commercial mortgage loan commitments is reported in Other liabilities in the Condensed Consolidated Balance Sheets. When a commitment is funded, we record a loan receivable and reclassify the liability for expected credit losses related to the commitment into loan allowance for expected credit losses. Other changes in the liability for expected credit losses on loan commitments are recorded in Net realized capital gains (losses) in the Condensed Consolidated Statements of Income. The following table presents a rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable (a) Three Months Ended March 31, 2021 2020 Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 685 $ 129 $ 814 $ 336 $ 102 $ 438 Initial allowance upon CECL adoption - - - 311 7 318 Loans charged off - - - - - - Recoveries of loans previously charged off - - - - - - Net charge-offs - - - - - - Provision for (release of) loan losses ( 23) ( 4) ( 27) 42 ( 11) 31 Allowance, end of period $ 662 $ 125 $ 787 $ 689 $ 98 $ 787 (a) Does not include allowance for credit losses of $ 70 million and $ 58 million, respectively, at March 31, 2021 and 2020 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities. As a result of the COVID-19 crisis, including the significant global economic slowdown, our expectations and models used to estimate the allowance for losses on commercial and residential mortgage loans have been updated to reflect the current economic environment. The full impact of COVID-19 on real estate valuations remains uncertain and we will continue to review our valuations as further information becomes available. 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. In response to the COVID-19 pandemic, there was an increase in the volume of loan modifications in our commercial mortgage, residential mortgage and leveraged loan portfolios in 2020. The COVID-19 related modifications were primarily in the form of short term payment deferrals (one to six months). Short-term payment deferrals are not considered a concession and therefore these modifications are not considered a TDR. As of March 31, 2021, the number of loans in deferral or in the process of being modified are returning to pre-COVID-19 levels. During the three-month periods ended March 31, 2021 and 2020, loans with a carrying value of $ 46 million and $ 25 million, respectively, were modified in TDRs. |
REINSURANCE
REINSURANCE | 3 Months Ended |
Mar. 31, 2021 | |
REINSURANCE | |
REINSURANCE | 7. Reinsurance Sale of Fortitude Holdings On June 2, 2020, we completed the Majority Interest Fortitude Sale. AIG established Fortitude Re, a wholly owned subsidiary of Fortitude Holdings, in 2018 in a series of reinsurance transactions related to AIG’s Run-Off operations. As of March 31, 2021, approximately $ 30.3 billion of reserves from AIG’s Life and Retirement Run-Off Lines and approximately $ 4.0 billion of reserves from AIG’s General Insurance Run-Off Lines, related to business written by multiple wholly-owned AIG subsidiaries, had been ceded to Fortitude Re under these reinsurance transactions. As of closing of the Majority Interest Fortitude Sale, these reinsurance transactions are no longer considered affiliated transactions and Fortitude Re is the reinsurer of the majority of AIG’s Run-Off operations. These reinsurance transactions between AIG and Fortitude Re were structured as modco and loss portfolio transfer arrangements with funds withheld (funds withheld). In modco and funds withheld arrangements, the investments supporting the reinsurance agreements, and which reflect the majority of the consideration that would be paid to the reinsurer for entering into the transaction, are withheld by, and therefore continue to reside on the balance sheet of, the ceding company (i.e., AIG) thereby creating an obligation for the ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date. Additionally, as AIG maintains ownership of these investments, AIG will maintain its existing accounting for these assets (e.g., the changes in fair value of available for sale securities will be recognized within other comprehensive income). As a result of the deconsolidation resulting from the Majority Interest Fortitude Sale, AIG has established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing reserves for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative and changes in fair value of the embedded derivative related to the funds withheld payable are recognized in earnings through realized capital gains (losses). This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements. There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re. The following summarizes the composition of the pool of assets: March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Value Value Value Value Corresponding Accounting Policy Fixed maturity securities - available for sale (a) $ 33,280 $ 33,280 $ 36,047 $ 36,047 Fair value through other comprehensive income Fixed maturity securities - fair value option 185 185 200 200 Fair value through net investment income Commercial mortgage loans 3,713 3,957 3,679 4,010 Amortized cost Real estate investments 326 559 358 585 Amortized cost Private equity funds / hedge funds 1,216 1,216 1,168 1,168 Fair value through net investment income Policy loans 404 404 413 413 Amortized cost Short-term Investments 48 48 34 34 Fair value through net investment income Funds withheld investment assets 39,172 39,649 41,899 42,457 Derivative assets, net (b) - - ( 1) ( 1) Fair value through realized capital gains (losses) Other (c) 532 532 604 604 Amortized cost Total $ 39,704 $ 40,181 $ 42,502 $ 43,060 (a) The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $( 2.9) billion ($( 2.3) billion after-tax) for the three months ended March 31, 2021. (b) The derivative assets and liabilities have been presented net of collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 287 million and $ 12 million, respectively, as of March 31, 2021. The derivative assets supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 357 million as of December 31, 2020. These derivative assets and liabilities are fully collateralized. (c) Primarily comprised of Cash and Accrued investment income. The impact of the funds withheld arrangements with Fortitude Re was as follows: Three Months Ended (in millions) March 31, 2021 Net underwriting income $ - Net investment income - Fortitude Re funds withheld assets 486 Net realized capital gains on Fortitude Re funds withheld assets: Net realized capital gains - Fortitude Re funds withheld assets 173 Net realized capital gains - Fortitude Re embedded derivatives 2,382 Net realized capital gains on Fortitude Re funds withheld assets 2,555 Income from continuing operations before income tax benefit 3,041 Income tax expense (a) 639 Net income 2,402 Change in unrealized appreciation of all other investments (a) ( 2,340) Comprehensive income $ 62 (a) The income tax expense (benefit) and the tax impact in AOCI was computed using AIG’s U.S. statutory tax rate of 21 percent. Various assets supporting the Fortitude Re funds withheld arrangements are reported at amortized cost, and as such, changes in the fair value of these assets are not reflected in the financial statements. However, changes in the fair value of these assets are included in the embedded derivative in the Fortitude Re funds withheld arrangements and the appreciation of these assets is the primary driver of the comprehensive income reflected above. Reinsurance – Credit Losses The estimation of reinsurance recoverables involves a significant amount of judgment, particularly for latent exposures, such as asbestos, due to their long-tail nature. Reinsurance assets include reinsurance recoverables on unpaid losses and loss adjustment expenses that are estimated as part of our loss reserving process and, consequently, are subject to similar judgments and uncertainties as the estimation of gross loss reserves. Similarly, Other assets include reinsurance recoverables for contracts which are accounted for as deposits. We assess the collectability of reinsurance recoverable balances in each reporting period, through either historical trends of disputes and credit events or financial analysis of the credit quality of the reinsurer. We record adjustments to reflect the results of these assessments through an allowance for credit losses and disputes on uncollectable reinsurance that reduces the carrying amount of reinsurance and other assets on the consolidated balance sheets (collectively, the reinsurance recoverable balances). This estimate requires significant judgment for which key considerations include: paid and unpaid amounts recoverable; whether the balance is in dispute or subject to legal collection; the relative financial health of the reinsurer as determined by the Obligor Risk Ratings (ORRs) we assign to each reinsurer based upon our financial reviews; insurers that are financially troubled (i.e., in run-off, have voluntarily or involuntarily been placed in receivership, are insolvent, are in the process of liquidation or otherwise subject to formal or informal regulatory restriction) are assigned ORRs that will generate a significant allowance; and whether collateral and collateral arrangements exist. An estimate of the reinsurance recoverable’s lifetime expected credit losses is established utilizing a probability of default and loss given default method, which reflects the reinsurer’s ORR rating. The allowance for credit losses excludes disputed amounts. An allowance for disputes is established for a reinsurance recoverable using the losses incurred model for contingencies. The total reinsurance recoverables as of March 31, 2021 were $ 78.2 billion. As of that date, utilizing AIG’s ORRs, (i) approximately 93 percent of the reinsurance recoverables were investment grade, of which 52 percent related to General Insurance and 41 percent related to Life and Retirement; (ii) approximately 6 percent of the reinsurance recoverables were non-investment grade, the majority of which related to General Insurance; (iii) less than one one As of March 31, 2021, approximately 73 percent of our non-investment grade reinsurance exposure related to captive insurers. These arrangements are typically collateralized by letters of credit, funds withheld or trust agreements. Reinsurance Recoverable Allowance The following table presents a rollforward of the reinsurance recoverable allowance: Three Months Ended March 31, 2021 2020 General Life and General Life and (in millions) Insurance Retirement Total Insurance Retirement Total Balance, beginning of year $ 292 $ 83 $ 375 $ 111 $ 40 $ 151 Initial allowance upon CECL adoption - - - 202 22 224 Current period provision for expected credit losses and disputes 1 4 5 ( 4) 2 ( 2) Write-offs charged against the allowance for credit losses and disputes ( 4) - ( 4) ( 3) ( 4) ( 7) Other changes 2 - 2 ( 4) - ( 4) Balance, end of period $ 291 $ 87 $ 378 $ 302 $ 60 $ 362 There were no material recoveries of credit losses previously written off for the three-month period ended March 31, 2021. There were no recoveries of credit losses previously written off for the three-month period ended March 31, 2020. Past-Due Status We consider a reinsurance asset to be past due when it is 90 days past due. The allowance for credit losses is estimated excluding disputed amounts. An allowance for disputes is established using the losses incurred method for contingencies. Past due balances on claims that are not in dispute were not material for any of the periods presented. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2021 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 8. Variable Interest Entities We enter into various arrangements with variable interest entities (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 to which the entity was designed to expose the variable interest holders. The primary beneficiary is the entity that has both (i) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (ii) 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 Creditors or beneficial interest holders of VIEs for which AIG is the primary beneficiary generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to AIG, except in limited circumstances when AIG has provided a guarantee to the VIE’s interest holders. The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Condensed Consolidated Balance Sheets: Real Estate and Affordable Investment Securitization Housing (in millions) Entities (d) Vehicles (e) Partnerships Other Total March 31, 2021 Assets: Bonds available for sale $ - $ 5,728 $ - $ - $ 5,728 Other bond securities - 2,226 - - 2,226 Equity securities 558 - - - 558 Mortgage and other loans receivable - 2,422 - - 2,422 Other invested assets Alternative investments (a) 2,860 - - - 2,860 Investment real estate 3,304 - 3,879 - 7,183 Short-term investments 174 1,071 - 20 1,265 Cash 129 - 249 - 378 Accrued investment income - 33 - - 33 Other assets 129 41 260 - 430 Other 26 - - 2 28 Total assets (b) $ 7,180 $ 11,521 $ 4,388 $ 22 $ 23,111 Liabilities: Debt of consolidated investment entities $ 2,529 $ 3,548 $ 2,515 $ - $ 8,592 Other (c) 169 397 198 9 773 Total liabilities $ 2,698 $ 3,945 $ 2,713 $ 9 $ 9,365 December 31, 2020 Assets: Bonds available for sale $ - $ 6,089 $ - $ - $ 6,089 Other bond securities - 2,367 - - 2,367 Equity securities 507 - - - 507 Mortgage and other loans receivable - 3,135 - - 3,135 Other invested assets Alternative investments (a) 2,689 - - - 2,689 Investment real estate 3,378 - 3,558 - 6,936 Short-term investments 365 1,534 - 27 1,926 Cash 129 - 203 - 332 Accrued investment income - 38 - - 38 Other assets 166 120 243 - 529 Other 3 - - 2 5 Total assets (b) $ 7,237 $ 13,283 $ 4,004 $ 29 $ 24,553 Liabilities: Debt of consolidated investment entities $ 2,559 $ 3,961 $ 2,287 $ 2 $ 8,809 Other (c) 180 187 187 10 564 Total liabilities $ 2,739 $ 4,148 $ 2,474 $ 12 $ 9,373 (a) Comprised primarily of investments in real estate joint ventures at March 31, 2021 and December 31, 2020. (b) The assets of each VIE can be used only to settle specific obligations of that VIE. (c) Comprised primarily of Other liabilities at March 31, 2021 and December 31, 2020. (d) At March 31, 2021 and December 31, 2020, off-balance sheet exposure primarily consisting of our insurance companies’ commitments to real estate and investment entities were $ 2.2 billion and $ 2.4 billion, respectively, of which commitments to external parties were $ 0.6 billion and $ 0.7 billion, respectively. (e) At March 31, 2021 and December 31, 2020, AIG had contributed total assets of $ 10.8 billion and $ 12.5 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. Under the terms of six transactions entered into between 2012 and 2014 securitizing portfolios of certain debt securities previously owned by AIG and its affiliates, an indirectly wholly-owned subsidiary of AIG is obligated to make certain capital contributions to such a securitization VIE in the event that the VIE is unable to redeem any rated notes it has in issue on the relevant redemption date. AIG has provided a guarantee to the six securitization VIEs of the obligations of its indirectly wholly-owned subsidiary to make such capital contributions when due. During the first quarter of 2021, we terminated two of these transactions. There were no amounts paid related to the guarantees provided. The termination of these two transactions resulted in a reduction of debt of consolidated investments entities of $ 50 million. At March 31, 2021, in aggregate, $ 125 million of rated notes issued by the four remaining VIEs were outstanding and held by investors other than AIG and its consolidated affiliates. For additional information on subsequent terminations of such transactions see Note 16 to the Condensed Consolidated Financial Statements. SunAmerica Affordable Housing Partners, Inc. (SAAHP) provides a Base Internal Rate of Return (Base IRR) guarantee to its third party investors, so that on a specified date if the investor has not received distributions of cash and allocations of certain tax benefits required to achieve their Base IRR as provided for in the partnership agreement, SAAHP shall distribute cash to effectively generate the Base IRR to the investor. In addition, SAAHP has from time to time guaranteed certain debt issued by third parties related to its business activities. As of March 31, 2021, the off-balance sheet amount of that guarantee was approximately $ 1 million. 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 March 31, 2021 Real estate and investment entities (a) $ 335,307 $ 6,482 $ 3,378 (c) $ 9,860 Affordable housing partnerships 2,429 300 1 301 Other 1,726 203 528 (d) 731 Total $ 339,462 $ 6,985 $ 3,907 $ 10,892 December 31, 2020 Real estate and investment entities (a) $ 321,716 $ 6,420 $ 3,273 (c) $ 9,693 Affordable housing partnerships 2,801 368 4 372 Other 1,733 195 546 (d) 741 Total $ 326,250 $ 6,983 $ 3,823 $ 10,806 (a) Comprised primarily of hedge funds and private equity funds. (b) At March 31, 2021 and December 31, 2020, $ 6.8 billion and $ 6.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (c) These amounts represent our unfunded commitments to invest in private equity funds and hedge funds. (d) 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. For additional information on VIEs see Note 10 to the Consolidated Financial Statements in the 2020 Annual Report. |
DERIVATIVES AND HEDGE ACCOUNTIN
DERIVATIVES AND HEDGE ACCOUNTING | 3 Months Ended |
Mar. 31, 2021 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
DERIVATIVES AND HEDGE ACCOUNTING | 9. 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 contracts with respect to investment operations, which may include, among other things, credit default swaps (CDSs), total return swaps and purchases of investments with embedded derivatives, such as equity-linked notes and convertible bonds. The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Condensed Consolidated Balance Sheets: March 31, 2021 December 31, 2020 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 $ 877 $ 16 $ 295 $ 6 $ 815 $ 16 $ 356 $ 11 Foreign exchange contracts 6,232 380 4,135 293 3,468 256 7,424 379 Derivatives not designated as hedging instruments: (a) Interest rate contracts 49,790 3,608 47,401 4,898 62,259 4,621 48,732 4,425 Foreign exchange contracts 13,476 689 7,258 561 9,518 766 12,860 711 Equity contracts 23,163 580 7,830 85 22,924 1,130 7,076 223 Credit contracts (b) 4,796 1 958 65 5,797 2 969 67 Other contracts (c) 43,030 13 55 4 43,441 14 54 6 Total derivatives, gross $ 141,364 $ 5,287 $ 67,932 $ 5,912 $ 148,222 $ 6,805 $ 77,471 $ 5,822 Counterparty netting (d) ( 3,080) ( 3,080) ( 3,812) ( 3,812) Cash collateral (e) ( 1,314) ( 2,129) ( 2,219) ( 1,441) Total derivatives on Condensed Consolidated Balance Sheets (f) $ 893 $ 703 $ 774 $ 569 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b) As of March 31, 2021 and December 31, 2020, included CDSs on super senior multi-sector CDOs with a net notional amount of $ 125 million and $ 137 million (fair value liability of $ 44 million and $ 44 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 Other liabilities, respectively. Fair value of assets related to bifurcated embedded derivatives was zero at both March 31, 2021 and December 31, 2020. Fair value of liabilities related to bifurcated embedded derivatives was $ 11.1 billion and $ 15.8 billion, respectively, at March 31, 2021 and December 31, 2020. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in variable annuity products, which include equity and interest rate components, and the funds withheld arrangement with Fortitude Re. For additional information see Note 7 to the Condensed Consolidated Financial Statements . 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 $ 3.6 billion at March 31, 2021 and $ 3.0 billion at December 31, 2020. In the case of collateral posted under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties. Collateral provided to us from third parties for derivative transactions was $ 1.7 billion and $ 2.3 billion at March 31, 2021 and December 31, 2020, 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 Condensed 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 three-month periods ended March 31, 2021 and 2020, we recognized gains of $ 101 million and $ 99 million, respectively, included in Change in foreign currency translation adjustments in Other comprehensive income related to the net investment hedge relationships. A qualitative methodology is utilized to assess hedge effectiveness for net investment hedges, while regression analysis is employed for all other hedges. The following table presents the gain (loss) recognized in earnings on our derivative instruments in fair value hedging relationships in the Condensed Consolidated Statements of Income: Gains/(Losses) Recognized in Earnings for: Hedging Excluded Hedged (in millions) Derivatives (a) Components (b) Items Net Impact Three Months Ended March 31, 2021 Interest rate contracts: Interest credited to policyholder account balances $ ( 4) $ - $ 6 $ 2 Net investment income (loss) 8 - ( 7) 1 Foreign exchange contracts: Realized capital gains/(losses) 32 ( 29) ( 32) ( 29) Three Months Ended March 31, 2020 Interest rate contracts: Interest credited to policyholder account balances $ 17 $ - $ ( 17) $ - Net investment income (loss) ( 3) - 3 - Foreign exchange contracts: Realized capital gains/(losses) 305 281 ( 305) 281 (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 Condensed Consolidated Statements of Income: Gains (Losses) Three Months Ended March 31, Recognized in Earnings (in millions) 2021 2020 By Derivative Type: Interest rate contracts $ ( 1,545) $ 2,573 Foreign exchange contracts ( 87) 1,025 Equity contracts ( 519) 1,103 Credit contracts ( 5) 122 Other contracts 15 10 Embedded derivatives 4,839 ( 1,052) Total $ 2,698 $ 3,781 By Classification: Policy fees $ 15 $ 15 Net investment income ( 12) ( 2) Net realized capital gains - excluding Fortitude Re funds withheld assets 440 3,752 Net realized capital gains on Fortitude Re funds withheld assets 2,265 - Policyholder benefits and claims incurred ( 10) 16 Total $ 2,698 $ 3,781 CREDIT RISK-RELATED CONTINGENT FEATURES We estimate that at March 31, 2021, 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 $ 40 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 $ 216 million and $ 257 million at March 31, 2021 and December 31, 2020, respectively. The aggregate fair value of assets posted as collateral under these contracts at March 31, 2021 and December 31, 2020, was approximately $ 256 million and $ 306 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 Condensed Consolidated Balance Sheets. The fair values of these hybrid securities were $ 2.3 billion and $ 2.4 billion at March 31, 2021 and December 31, 2020, respectively. These securities have par amounts of $ 4.9 billion and $ 5.0 billion at March 31, 2021 and December 31, 2020, respectively, and have remaining stated maturity dates that extend to 2052. |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 3 Months Ended |
Mar. 31, 2021 | |
INSURANCE LIABILITIES | |
INSURANCE LIABILITIES | 10. 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 claims incurred but not reported and loss adjustment expenses, 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, except to the extent such adjustment impacts a deferred gain under a retroactive reinsurance agreement, in which case the ceded portion would be amortized into pre-tax income in subsequent periods. 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. Given the uncertainties around the impact from the COVID-19 crisis, including the significant global economic slowdown, the full impact of COVID-19 and how it may ultimately impact the results of our insurance operations remains uncertain. In addition, in response to the crisis, new governmental, legislative and regulatory initiatives have been put in place and continue to be developed that could result in additional restrictions and requirements relating to our policies that may have a negative impact on our business operations. However, we have recorded our estimate of the ultimate liability for claims that have occurred as of the balance sheet date associated with COVID-19 which reflects our expectations given the current facts and circumstances. We will continue to monitor and review the impact. 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 $ 12.5 billion and $ 12.6 billion at March 31, 2021 and December 31, 2020, 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 both March 31, 2021 and December 31, 2020, we held collateral of approximately $ 9.2 billion, for these deductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements. Allowance for credit losses for the unsecured portion of these recoverable amounts was $ 14 million at both March 31, 2021 and December 31, 2020. The following table presents the rollforward of activity in Loss Reserves: Three Months Ended March 31, (in millions) 2021 2020 Liability for unpaid loss and loss adjustment expenses, beginning of period $ 77,720 $ 78,328 Reinsurance recoverable ( 34,431) ( 31,069) Initial allowance upon CECL adoption - 164 Net Liability for unpaid loss and loss adjustment expenses, beginning of period 43,289 47,423 Losses and loss adjustment expenses incurred : Current year 3,925 4,111 Prior years, excluding discount and amortization of deferred gain 16 ( 1) Prior years, discount charge (benefit) ( 18) 76 Prior years, amortization of deferred gain on retroactive reinsurance (a) ( 72) ( 75) Total losses and loss adjustment expenses incurred 3,851 4,111 Losses and loss adjustment expenses paid : Current year ( 328) ( 342) Prior years ( 3,584) ( 4,351) Total losses and loss adjustment expenses paid ( 3,912) ( 4,693) Other changes : Foreign exchange effect 244 ( 230) Allowance for credit losses - - Retroactive reinsurance adjustment (net of discount) (b) 89 22 Total other changes 333 ( 208) Liability for unpaid loss and loss adjustment expenses, end of period: Net liability for unpaid losses and loss adjustment expenses 43,561 46,633 Reinsurance recoverable 35,271 31,114 Total $ 78,832 $ 77,747 (a) Includes $ 17 million and $ 8 million for the retroactive reinsurance agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc. (Berkshire), covering U.S. asbestos exposures for the three-month periods ended March 31, 2021 and 2020, respectively. (b) Includes benefit (charge) from change in discount on retroactive reinsurance in the amount of $ 39 million and $ 72 million for the three-month periods ended March 31, 2021 and 2020, respectively. On January 20, 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 paid 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. At NICO’s 80 percent share, NICO’s limit of liability under the contract is $ 20 billion. We account for this transaction as retroactive reinsurance. We paid total consideration, including interest, of $ 10.2 billion. The consideration was placed into a collateral trust account as security for NICO’s claim payment obligations, and Berkshire has provided a parental guarantee to secure the obligations of NICO under the agreement. Discounting of Loss Reserves At March 31, 2021 and December 31, 2020, the loss reserves reflect a net loss reserve discount of $ 796 million and $ 725 million, respectively, including tabular and non-tabular calculations based upon the following assumptions: The non-tabular workers’ compensation discount is calculated separately for companies domiciled in New York, Pennsylvania and Delaware, and follows the statutory regulations (prescribed or permitted) for each state. For New York companies, the discount is based on a 5 percent interest rate and the companies’ own payout patterns. The Pennsylvania and Delaware regulators approved use of a consistent discount rate (U.S. Treasury rate plus a liquidity premium) to all of our workers’ compensation reserves in our Pennsylvania domiciled and Delaware domiciled companies, as well as our use of updated payout patterns specific to our primary and excess workers compensation portfolios. In 2020, the regulators also approved that the discount rate will be updated on an annual basis. The tabular workers’ compensation discount is calculated based on the mortality rate used in the 2007 U.S. Life table and interest rates prescribed or permitted by each state (i.e. New York is based on 5 percent interest rate and Pennsylvania and Delaware are based on U.S. Treasury plus liquidity rate). The discount for asbestos reserves has been fully accreted . At March 31, 2021 and December 31, 2020, the discount consists of $ 311 million and $ 285 million of tabular discount, respectively, and $ 485 million and $ 440 million of non-tabular discount for workers’ compensation, respectively. During the three-month periods ended March 31, 2021 and 2020, the benefit / (charge) from changes in discount of $ 32 million and $( 56) million, respectively, were recorded as part of the policyholder benefits and losses incurred in the Condensed Consolidated Statements of Income. The following table presents the components of the loss reserve discount discussed above: March 31, 2021 December 31, 2020 North North America Other America Other Commercial Operations Commercial Operations (in millions) Insurance Run-Off (b) Total Insurance Run-Off (b) Total U.S. workers' compensation $ 1,668 $ - $ 1,668 $ 1,636 $ - $ 1,636 Retroactive reinsurance ( 872) - ( 872) ( 911) - ( 911) Total reserve discount (a) $ 796 $ - $ 796 $ 725 $ - $ 725 (a) Excludes $ 158 million and $ 151 million of discount related to certain long tail liabilities in the UK at March 31, 2021 and December 31, 2020, respectively. (b) Excludes $ 513 million and $ 493 million, respectively, of discount which was percent ceded to Fortitude Re at March 31, 2021 and December 31, 2020. On June 2, 2020, we completed the Majority Interest Fortitude Sale. For additional information see Note 1 to the Condensed Consolidated Financial Statements. The following table presents the net loss reserve discount benefit (charge): Three Months Ended March 31, 2021 2020 North North America Other America Other Commercial Operations Commercial Operations (in millions) Insurance Run-Off Total Insurance Run-Off Total Current accident year $ 14 $ - $ 14 $ 20 $ - $ 20 Accretion and other adjustments to prior year discount 18 - 18 ( 67) ( 9) ( 76) Effect of interest rate changes - - - - - - Net reserve discount benefit (charge) 32 - 32 ( 47) ( 9) ( 56) Change in discount on loss reserves ceded under retroactive reinsurance 39 - 39 72 - 72 Net change in total reserve discount * $ 71 $ - $ 71 $ 25 $ ( 9) $ 16 * Excludes $ 7 million and $( 2) million discount related to certain long tail liabilities in the UK for the three-month periods ended March 31, 2021 and 2020, respectively. |
CONTINGENCIES, COMMITMENTS AND
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 3 Months Ended |
Mar. 31, 2021 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 11. 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 or examinations 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. Tax Litigation We were party to tax litigation before the Southern District of New York (Southern District), which was dismissed by the Southern District in October 2020 based upon the settlement reached between AIG and the government. For additional information see Note 15 to the Condensed Consolidated Financial Statements. 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 $ 6.7 billion at March 31, 2021. 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 AIG Financial Products Corp. and related subsidiaries (collectively AIGFP) and of AIG Markets, Inc. arising from transactions entered into by AIG Markets, Inc. 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 March 31, 2021 was $ 75 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. 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. The Majority Interest Fortitude Sale is subject to a post-closing purchase price adjustment pursuant to which AIG will pay Fortitude Re for certain adverse development in property casualty related reserves, based on an agreed methodology, that may occur on or prior to December 31, 2023, up to a maximum of $ 500 million. We are unable to develop a reasonable estimate of the maximum potential payout under certain of these arrangements. Overall, we believe the likelihood that we will have to make any material payments related to completed sales under these arrangements is remote, and no material liabilities related to these arrangements have been recorded in the Condensed Consolidated Balance Sheets. For additional discussion on the Fortitude Re transaction, see Note 1 to the Condensed Consolidated Financial Statements. Other For additional discussion on commitments and guarantees associated with VIEs, see Note 8 to the Condensed Consolidated Financial Statements. For additional disclosures about derivatives, see Note 9 to the Condensed Consolidated Financial Statements. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2021 | |
EQUITY | |
EQUITY | 12. 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. The following table presents declaration date, record date, payment date and dividends paid per preferred share and per depository share on the Series A Preferred Stock in the three months ended March 31, 2021 and 2020: Dividends Paid Declaration Date Record Date Payment Date Per Preferred Share Per Depositary Share February 16, 2021 February 26, 2021 March 15, 2021 $ 365.625 $ 0.365625 February 12, 2020 February 28, 2020 March 16, 2020 $ 365.625 $ 0.365625 Common Stock The following table presents a rollforward of outstanding shares: Three Months Ended March 31, 2021 Common Treasury Common Stock Stock Issued Stock Outstanding Shares, beginning of year 1,906,671,492 ( 1,045,113,443) 861,558,049 Shares issued - 5,857,575 5,857,575 Shares repurchased - ( 8,032,171) ( 8,032,171) Shares, end of period 1,906,671,492 ( 1,047,288,039) 859,383,453 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 in the three months ended March 31, 2021 and 2020: Dividends Paid Declaration Date Record Date Payment Date Per Common Share February 16, 2021 March 16, 2021 March 30, 2021 0.32 February 12, 2020 March 16, 2020 March 30, 2020 0.32 For a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries see Note 19 to the Consolidated Financial Statements in the 2020 Annual Report . Repurchase of AIG Common Stock The following table presents repurchases of AIG Common Stock: Three Months Ended March 31, (in millions) 2021 2020 Aggregate repurchases of common stock $ 362 $ 500 Total number of common shares repurchased 8 12 Aggregate repurchases of warrants $ - $ - Total number of warrants repurchased - - 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 March 31, 2021, approximately $ 1.1 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. Our warrants to purchase shares of AIG Common Stock expired on January 19, 2021. In February 2020, we executed an accelerated stock repurchase (ASR) agreement with a third-party financial institution. The total number of shares of AIG Common Stock repurchased in the three months ended March 31, 2020, and the aggregate purchase price of those shares, reflect our payment of $ 500 million in the aggregate under the ASR agreement and the receipt of approximately 12 million shares of AIG Common Stock in the aggregate. During the first quarter of 2021, we repurchased approximately 8 million shares of AIG Common Stock for an aggregate purchase price of approximately $ 362 million pursuant to Exchange Act Rule 10b5-1 repurchase plans. Approximately $ 92 million of these share repurchases were funded with proceeds received from warrant exercises that occurred prior to the expiration of warrants to purchase shares of AIG Common Stock on January 19, 2021. 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): Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total Balance, December 31, 2020, net of tax $ ( 95) $ 17,093 $ ( 2,267) $ ( 1,228) $ 8 $ 13,511 Change in unrealized appreciation (depreciation) of investments 41 ( 11,690) - - - ( 11,649) Change in deferred policy acquisition costs adjustment and other ( 2) 1,393 - - - 1,391 Change in future policy benefits - 1,145 - - - 1,145 Change in foreign currency translation adjustments - - 170 - - 170 Change in net actuarial gain - - - ( 1) - ( 1) Change in prior service cost - - - 2 - 2 Change in deferred tax asset (liability) ( 6) 1,953 ( 45) ( 4) - 1,898 Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - ( 1) ( 1) Total other comprehensive income (loss) 33 ( 7,199) 125 ( 3) ( 1) ( 7,045) Noncontrolling interests - - - - - - Balance, March 31, 2021, net of tax $ ( 62) $ 9,894 $ ( 2,142) $ ( 1,231) $ 7 $ 6,466 Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total Balance, December 31, 2019, net of tax $ - $ 8,722 $ ( 2,625) $ ( 1,122) $ 7 $ 4,982 Change in unrealized depreciation of investments ( 484) ( 9,971) - - - ( 10,455) Change in deferred policy acquisition costs adjustment and other (a) 30 1,377 - - - 1,407 Change in future policy benefits - 1,672 - - - 1,672 Change in foreign currency translation adjustments - - ( 69) - - ( 69) Change in net actuarial loss - - - 4 - 4 Change in prior service credit - - - ( 1) - ( 1) Change in deferred tax asset (liability) 95 1,380 ( 16) ( 10) - 1,449 Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - 3 3 Total other comprehensive loss ( 359) ( 5,542) ( 85) ( 7) 3 ( 5,990) Noncontrolling interests - ( 10) ( 4) - - ( 14) Balance, March 31, 2020, net of tax $ ( 359) $ 3,190 $ ( 2,706) $ ( 1,129) $ 10 $ ( 994) (a) Includes net unrealized gains and losses attributable to businesses held for sale at March 31, 2020. The following table presents the other comprehensive income (loss) reclassification adjustments for the three-month periods ended March 31, 2021 and 2020, respectively: Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total March 31, 2021 Unrealized change arising during period $ 37 $ ( 8,761) $ 170 $ ( 11) $ ( 1) $ ( 8,566) Less: Reclassification adjustments included in net income ( 2) 391 - ( 12) - 377 Total other comprehensive income (loss), before income tax expense (benefit) 39 ( 9,152) 170 1 ( 1) ( 8,943) Less: Income tax expense (benefit) 6 ( 1,953) 45 4 - ( 1,898) Total other comprehensive income (loss), net of income tax expense (benefit) $ 33 $ ( 7,199) $ 125 $ ( 3) $ ( 1) $ ( 7,045) Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total March 31, 2020 Unrealized change arising during period $ ( 454) $ ( 6,708) $ ( 69) $ ( 7) $ 3 $ ( 7,235) Less: Reclassification adjustments included in net income - 214 - ( 10) - 204 Total other comprehensive income (loss), before income tax expense (benefit) ( 454) ( 6,922) ( 69) 3 3 ( 7,439) Less: Income tax expense (benefit) ( 95) ( 1,380) 16 10 - ( 1,449) Total other comprehensive income (loss), net of income tax expense (benefit) $ ( 359) $ ( 5,542) $ ( 85) $ ( 7) $ 3 $ ( 5,990) The following table presents the effect of the reclassification of significant items out of AOCI on the respective line items in the Condensed Consolidated Statements of Income: Amount Reclassified from AOCI Affected Line Item in the Three Months Ended March 31, Condensed Consolidated (in millions) 2021 2020 Statements of Income Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken Investments $ ( 2) $ - Other realized capital gains Total ( 2) - Unrealized appreciation (depreciation) of all other investments Investments 391 214 Other realized capital gains Total 391 214 Change in retirement plan liabilities adjustment Prior-service credit ( 1) - * Actuarial losses ( 11) ( 10) * Total ( 12) ( 10) Total reclassifications for the period $ 377 $ 204 * These AOCI components are included in the computation of net periodic pension cost. For additional information see Note 14 to the Condensed Consolidated Financial Statements. |
EARNINGS PER COMMON SHARE (EPS)
EARNINGS PER COMMON SHARE (EPS) | 3 Months Ended |
Mar. 31, 2021 | |
EARNINGS PER COMMON SHARE (EPS) | |
EARNINGS PER COMMON SHARE (EPS) | 13. 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 common 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: Three Months Ended March 31, (dollars in millions, except per common share data) 2021 2020 Numerator for EPS: Income from continuing operations $ 3,930 $ 1,654 Less: Net income (loss) from continuing operations attributable to noncontrolling interests 54 ( 95) Less: Preferred stock dividends 7 7 Income attributable to AIG common shareholders from continuing operations 3,869 1,742 Income from discontinued operations, net of income tax expense - - Net income attributable to AIG common shareholders $ 3,869 $ 1,742 Denominator for EPS: Weighted average common shares outstanding - basic 868,105,069 874,213,630 Dilutive common shares 8,164,855 4,652,583 Weighted average common shares outstanding - diluted (a) 876,269,924 878,866,213 Income per common share attributable to AIG common shareholders: Basic: Income from continuing operations $ 4.45 $ 1.99 Income from discontinued operations $ - $ - Income attributable to AIG common shareholders $ 4.45 $ 1.99 Diluted: Income from continuing operations $ 4.41 $ 1.98 Income from discontinued operations $ - $ - Income attributable to AIG common shareholders $ 4.41 $ 1.98 (a) Dilutive common shares include 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, which expired in January 2021. The number of common shares excluded from diluted shares outstanding was 9.2 million and 67.2 million for the three-month periods ended March 31, 2021 and 2020, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive. For information about our repurchases of AIG Common Stock see Note 12 to the Condensed Consolidated Financial Statements. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 3 Months Ended |
Mar. 31, 2021 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 14. Employee Benefits We sponsor various defined benefit plans for eligible employees and retirees in the U.S. and certain non-U.S. countries. The following table presents the components of net periodic benefit cost (credit) with respect to pension benefits: Pension U.S. Non-U.S. (in millions) Plans Plans Total Three Months Ended March 31, 2021 Components of net periodic benefit cost: Service cost $ 1 $ 5 $ 6 Interest cost 22 3 25 Expected return on assets ( 61) ( 6) ( 67) Amortization of prior service cost - 1 1 Amortization of net loss 9 2 11 Net periodic benefit cost (credit) $ ( 29) $ 5 $ ( 24) Three Months Ended March 31, 2020 Components of net periodic benefit cost: Service cost $ 1 $ 5 $ 6 Interest cost 34 3 37 Expected return on assets ( 60) ( 5) ( 65) Amortization of net loss 8 2 10 Net periodic benefit cost (credit) $ ( 17) $ 5 $ ( 12) The service cost for our U.S. defined benefit plans only reflects administrative fees as the plans are frozen and no longer accrue benefits. We recognized net expense of $ million for our U.S. and non-U.S. postretirement benefit plans for both three-month periods ended March 31, 2021 and 2020. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | 15. Income Taxes U.S. Tax law changes On December 22, 2017, the U.S. enacted the Tax Act. 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 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. On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act to mitigate the economic impacts of the COVID-19 crisis. The tax provisions of the CARES Act have not had and are currently not expected to have a material impact on AIG’s U.S. federal tax liabilities. RECLASSIFICATION OF CERTAIN TAX EFFECTS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME 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. Interim Tax Calculation Method We use the estimated annual effective tax rate method in computing our interim tax provision. Certain items, including those deemed to be unusual, infrequent or that cannot be reliably estimated, are excluded from the estimated annual effective tax rate. In these cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax rate, primarily certain changes in uncertain tax positions and realizability of deferred tax assets, and are recorded in the period in which the change occurs. While certain impacts of the Tax Act are included in our annual effective tax rate, we continue to refine our calculations as additional information becomes available, which may result in changes to the estimated annual effective tax rate. As of March 31, 2021, the annual effective tax rate includes the tax effects of actual and projected COVID-19 related losses and market developments. Interim Tax Expense (Benefit) For the three-month period ended March 31, 2021, the effective tax rate on income from continuing operations was 16.9 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax benefits associated with the release of reserves for uncertain tax positions, penalties and interest related to the recent completion of audit activity by the IRS, tax exempt income, and reclassifications from AOCI to income from continuing operations related to the disposal of available for sale securities. These tax benefits were partially offset by tax charges associated with the establishment of U.S. federal valuation allowance related to certain tax attribute carryforwards, the effect of foreign operations, excess tax charges related to share based compensation payments recorded through the income statement, state and local income taxes, and non-deductible transfer pricing charges. The effect of foreign operations is primarily related to income of our foreign operations taxed at statutory tax rates higher than 21 percent, other foreign taxes, and foreign income subject to U.S. taxation. For the three-month period ended March 31, 2020, the effective tax rate on income from continuing operations was 35.3 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax charges associated with the establishment of U.S. federal valuation allowance related to certain tax attribute carryforwards, accrual of interest associated with IRS and other tax authority matters, the effect of foreign operations, state and local income taxes, excess tax charges related to share based compensation payments recorded through the income statement, and non-deductible transfer pricing charges, partially offset by tax benefits associated with tax exempt income, and reclassifications from AOCI to income from continuing operations related to the disposal of available for sale securities. The effect of foreign operations is primarily related to income in our foreign operations taxed at statutory tax rates higher than 21 percent, other foreign taxes, and foreign income subject to U.S. taxation. For the three-month period ended March 31, 2021, 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. Deferred taxes, if necessary, have been provided on earnings of non-U.S. affiliates whose earnings are not indefinitely reinvested. Given the uncertainties around the impact from the COVID-19 crisis, including the significant global economic slowdown, we continue to monitor and review its impact on our reinvestment considerations, including regulatory oversight in the relevant jurisdictions. 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 periods for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and prudent and feasible actions and tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset. 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 are able to utilize both the net operating loss and foreign tax credit carryforwards concurrently. Recent events, including the impact of the recent completion of audit activity by the IRS, the COVID-19 crisis, changes in target interest rates by the Board of Governors of the Federal Reserve System, and significant market volatility, continue to impact actual and projected results of our business operations as well as our views on potential effectiveness of certain prudent and feasible tax planning strategies. In order to demonstrate the predictability and sufficiency of future taxable income necessary to support the realizability of the net operating losses and foreign tax credit carryforwards, we have considered forecasts of future income for each of our businesses, including assumptions about future macro-economic and AIG-specific conditions and events, and any impact these conditions and events may have on our prudent and feasible tax planning strategies. We also subjected the forecasts to a variety of stresses of key assumptions and evaluated the effect on tax attribute utilization. The carryforward periods of our foreign tax credit carryforwards range from tax years 2021 through 2023. Carryforward periods for our net operating losses extend from 2028 forward. However, utilization of a portion of our net operating losses is limited under separate return limitation year rules. The recent completion of audit activity by the IRS and subsequent release of certain reserves for uncertain tax positions resulted in an initial recognition of additional net operating loss and foreign tax credit carryforwards arising in prior years. Taking into account this initial recognition of additional carryforwards as well as other first quarter 2021 events and our analysis of their potential impact on utilization of our tax attributes, we recorded an increase of $ 700 million in valuation allowance related to a portion of our net operating loss carryforwards that are no longer more-likely-than-not to be realized. To the extent that the valuation allowance is attributed to changes in forecast of current year taxable income, the impact is included in our estimated annualized effective tax rate. The valuation allowance related to changes in forecasts of income in future periods as well as other items not related to the current year was recorded discretely in the three-month period ended March 31, 2021. As of March 31, 2021, we have recorded valuation allowance of $ 850 million related to a portion of our foreign tax credit and net operating loss carryforwards that are no longer more-likely-than-not to be realized. Estimates of future taxable income, including income generated from prudent and feasible actions and tax planning strategies, impact of settlements with taxing authorities, 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. Additionally, estimates of future taxable income, including prudent and feasible tax planning strategies, may be further impacted by market developments arising from the COVID-19 crisis and uncertainty regarding its outcome. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period. For the three-month period ended March 31, 2021, recent changes in market conditions, including the COVID-19 crisis and 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 reduction in the deferred tax liability related to net unrealized tax capital gains. As of March 31, 2021, based on all available evidence, we concluded that no valuation allowance is necessary in the U.S. Life Insurance companies’ available for sale securities portfolio. For the three-month period ended March 31, 2021, 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 a reduction to the deferred tax liability related to net unrealized tax capital gains. As of March 31, 2021, based on all available evidence, we concluded that no valuation allowance is necessary in the U.S. non-life companies’ available for sale securities portfolio. For the three-month period ended March 31, 2021, we recognized a net increase (decrease) of $( 14) million, in deferred tax asset valuation allowance associated with certain foreign and state jurisdictions, primarily attributable to current year activity. 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 laws. We are currently under examination by the IRS for the tax years 2011 through 2013. In September 2020, we received the IRS Revenue Agent Report containing agreed and disagreed issues for the audit of tax years 2007-2010. In October 2020, we filed a protest of the disagreed issues with the IRS Independent Office of Appeals (IRS Appeals). In March 2021, the IRS audit team issued their rebuttal to the protest of disagreed issues to IRS Appeals. We have also received notification that the disagreed issues were accepted for review by IRS Appeals. In 2009, after paying amounts due on a statutory notice of deficiency related to the disallowance of foreign tax credits associated with cross border financing transactions, we filed a refund lawsuit in the Southern District of New York (Southern District) with respect to tax year 1997. In January 2018, the parties reached non-binding agreements in principle on issues presented in the dispute with respect to other relevant tax years. In 2019, we agreed with the IRS to execute an agreement for the tax years at issue in which AIG would waive restrictions on the assessment of additional tax related to the settlement of the underlying issues in those tax years. The litigation was stayed pending the outcome of the review process. During the fourth quarter of 2020, the parties concluded the review process and executed a binding settlement agreement with respect to the underlying issues. On October 22, 2020, the Southern District dismissed the case based upon the settlement reached between AIG and the government. The parties continue to review the related interest calculations based on the settlement agreement, which will become due upon the IRS’ issuance of a Notice and Demand for Payment. Accounting for Uncertainty in Income Taxes At March 31, 2021 and December 31, 2020, our unrecognized tax benefits, excluding interest and penalties, were $ 1.2 billion and $ 2.3 billion, respectively. At March 31, 2021 and December 31, 2020, 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 $ 20 million and $ 44 million, respectively. Accordingly, at March 31, 2021 and December 31, 2020, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $ 1.1 billion and $ 2.3 billion, respectively. The decrease in the first quarter of 2021 is primarily attributable to the recent completion of audit activity by the IRS. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At March 31, 2021 and December 31, 2020, we had accrued liabilities of $ 103 million and $ 286 million, respectively, for the payment of interest (net of the federal benefit) and penalties. For the three-month periods ended March 31, 2021 and 2020, we accrued expense (benefit) of ($ 183) million and $ 49 million, respectively, for the payment of interest and penalties. The activity in the first quarter of 2021 is primarily related to the recent completion of audit activity by the IRS. We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next 12 months by as much as $ 56 million, 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 16. Subsequent Events Dividends Declared On May 6, 2021, our Board of Directors declared a cash dividend on AIG Common Stock of $ 0.32 per share, payable on June 29, 2021 to shareholders of record on June 15, 2021. On May 6, 2021, our Board of Directors declared a cash dividend on AIG’s Series A Preferred Stock of $ 365.625 per share, payable on June 15, 2021 to holders of record on May 31, 2021. REPURCHASE OF COMMON STOCK Pursuant to an Exchange Act Rule 10b5-1 repurchase plan, from April 1, 2021 to May 6, 2021, we repurchased approximately one 65 million. As of May 6, 2021, approximately $ 1.1 billion remained under our share repurchase authorization. CONSOLIDATED INVESTMENT ENTITIES Subsequent to March 31, 2021, we terminated an additional three consolidated investment entities relating to securitized portfolios of certain debt securities ( see Note 8 to the Condensed Consolidated Financial Statements for a discussion of securitized portfolios of certain debt securities ). As of March 31, 2021, the senior notes issued by these securitizations and held by investors other than AIG and its consolidated affiliates had a carrying value of $ 100 million. There were no payments made related to the guarantees that AIG provided. After these terminations, there remains one consolidated investment entity relating to securitized portfolios of certain debt securities, and its senior notes had a carrying value of $ 25 million as of March 31, 2021. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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, for example universal life, variable and fixed annuities, and fixed indexed annuities; reinsurance assets, including the allowance for credit losses; goodwill impairment; allowances for credit losses primarily on loans and available for sale fixed maturity securities; 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 Cuts and Jobs Act (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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Investments | Evaluating Investments for AN ALLOWANCE FOR CREDIT LOSSES 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 if the fair value of the security is below amortized cost, an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized capital losses. No allowance is established in these situations and any previously recorded allowance is reversed. The new cost basis is not adjusted for subsequent increases in estimated fair value . 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 decline in the fair value below the amortized cost is due to credit related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding charge to realized capital losses. The allowance for credit losses is limited to the difference between amortized cost and fair value. 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 associated with credit related factors is presented in unrealized appreciation (depreciation) of fixed maturity securities on which an allowance for credit losses was previously recognized (a separate component of AOCI). Accrued interest is excluded from the measurement of the allowance for credit losses. When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the 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. When estimating future cash flows for corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers: Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Scenarios specific to the issuer and the security, which may also include 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. Under the current expected credit loss (CECL) model, credit losses are reassessed each period. The allowance for credit losses and the corresponding charge to realized capital losses can be reversed if conditions change, however, the allowance for credit losses will never be reduced below zero. When we determine that all or a portion of a fixed maturity security is uncollectable, the uncollectable amortized cost amount is written off with a corresponding reduction to the allowance for credit losses. If we collect cash flows that were previously written off, the recovery is recognized by decreasing realized capital losses. Credit Impairments Purchased Credit Deteriorated Securities We purchase certain RMBS securities that have experienced more-than-insignificant deterioration in credit quality since origination. Subsequent to the adoption of the Financial Instruments Credit Losses Standard, these are referred to as PCD assets. At the time of purchase an allowance is recognized for these PCD assets by adding it to the purchase price to arrive at the initial amortized cost. There is no credit loss expense recognized upon acquisition of a PCD asset. When determining the initial allowance for credit losses, management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the 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: • Current delinquency rates; • Expected default rates and the timing of such defaults; • Loss severity and the timing of any recovery; and • Expected prepayment speeds. Subsequent to the acquisition date, the PCD assets follow the same accounting as other structured securities that are not high credit quality. Methodology Used to Estimate the Allowance for Credit Losses At the time of origination or purchase, an allowance for credit losses is established for mortgage and other loan receivables and is updated each reporting period. Changes in the allowance for credit losses are recorded in realized capital losses. This allowance reflects the risk of loss, even when that risk is remote, and reflects losses expected over the remaining contractual life of the loan. The allowance for credit losses considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts of future economic conditions. We revert to historical information when we determine that we can no longer reliably forecast future economic assumptions. The allowances for the commercial mortgage loans and residential mortgage loans are estimated utilizing a probability of default and loss given default model. Loss rate factors are determined based on historical data and adjusted for current and forecasted information. The loss rates are applied based on individual loan attributes and considering such data points as loan-to-value ratios, FICO scores, and debt service coverage. The estimate of credit losses also reflects management’s assumptions on certain macroeconomic factors that include, but are not limited to, gross domestic product growth, employment, inflation, housing price index, interest rates and credit spreads. Accrued interest is excluded from the measurement of the allowance for credit losses and accrued interest is reversed through interest income once a loan is placed on nonaccrual. 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. We also have off-balance sheet commitments related to our commercial mortgage loans. The liability for expected credit losses related to these commercial mortgage loan commitments is reported in Other liabilities in the Condensed Consolidated Balance Sheets. When a commitment is funded, we record a loan receivable and reclassify the liability for expected credit losses related to the commitment into loan allowance for expected credit losses. Other changes in the liability for expected credit losses on loan commitments are recorded in Net realized capital gains (losses) in the Condensed Consolidated Statements of Income. |
Reinsurance | 7. Reinsurance Sale of Fortitude Holdings On June 2, 2020, we completed the Majority Interest Fortitude Sale. AIG established Fortitude Re, a wholly owned subsidiary of Fortitude Holdings, in 2018 in a series of reinsurance transactions related to AIG’s Run-Off operations. As of March 31, 2021, approximately $ 30.3 billion of reserves from AIG’s Life and Retirement Run-Off Lines and approximately $ 4.0 billion of reserves from AIG’s General Insurance Run-Off Lines, related to business written by multiple wholly-owned AIG subsidiaries, had been ceded to Fortitude Re under these reinsurance transactions. As of closing of the Majority Interest Fortitude Sale, these reinsurance transactions are no longer considered affiliated transactions and Fortitude Re is the reinsurer of the majority of AIG’s Run-Off operations. These reinsurance transactions between AIG and Fortitude Re were structured as modco and loss portfolio transfer arrangements with funds withheld (funds withheld). In modco and funds withheld arrangements, the investments supporting the reinsurance agreements, and which reflect the majority of the consideration that would be paid to the reinsurer for entering into the transaction, are withheld by, and therefore continue to reside on the balance sheet of, the ceding company (i.e., AIG) thereby creating an obligation for the ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date. Additionally, as AIG maintains ownership of these investments, AIG will maintain its existing accounting for these assets (e.g., the changes in fair value of available for sale securities will be recognized within other comprehensive income). As a result of the deconsolidation resulting from the Majority Interest Fortitude Sale, AIG has established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing reserves for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative and changes in fair value of the embedded derivative related to the funds withheld payable are recognized in earnings through realized capital gains (losses). This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements. There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re. The following summarizes the composition of the pool of assets: March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Value Value Value Value Corresponding Accounting Policy Fixed maturity securities - available for sale (a) $ 33,280 $ 33,280 $ 36,047 $ 36,047 Fair value through other comprehensive income Fixed maturity securities - fair value option 185 185 200 200 Fair value through net investment income Commercial mortgage loans 3,713 3,957 3,679 4,010 Amortized cost Real estate investments 326 559 358 585 Amortized cost Private equity funds / hedge funds 1,216 1,216 1,168 1,168 Fair value through net investment income Policy loans 404 404 413 413 Amortized cost Short-term Investments 48 48 34 34 Fair value through net investment income Funds withheld investment assets 39,172 39,649 41,899 42,457 Derivative assets, net (b) - - ( 1) ( 1) Fair value through realized capital gains (losses) Other (c) 532 532 604 604 Amortized cost Total $ 39,704 $ 40,181 $ 42,502 $ 43,060 (a) The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $( 2.9) billion ($( 2.3) billion after-tax) for the three months ended March 31, 2021. (b) The derivative assets and liabilities have been presented net of collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 287 million and $ 12 million, respectively, as of March 31, 2021. The derivative assets supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 357 million as of December 31, 2020. These derivative assets and liabilities are fully collateralized. (c) Primarily comprised of Cash and Accrued investment income. The impact of the funds withheld arrangements with Fortitude Re was as follows: Three Months Ended (in millions) March 31, 2021 Net underwriting income $ - Net investment income - Fortitude Re funds withheld assets 486 Net realized capital gains on Fortitude Re funds withheld assets: Net realized capital gains - Fortitude Re funds withheld assets 173 Net realized capital gains - Fortitude Re embedded derivatives 2,382 Net realized capital gains on Fortitude Re funds withheld assets 2,555 Income from continuing operations before income tax benefit 3,041 Income tax expense (a) 639 Net income 2,402 Change in unrealized appreciation of all other investments (a) ( 2,340) Comprehensive income $ 62 (a) The income tax expense (benefit) and the tax impact in AOCI was computed using AIG’s U.S. statutory tax rate of 21 percent. Various assets supporting the Fortitude Re funds withheld arrangements are reported at amortized cost, and as such, changes in the fair value of these assets are not reflected in the financial statements. However, changes in the fair value of these assets are included in the embedded derivative in the Fortitude Re funds withheld arrangements and the appreciation of these assets is the primary driver of the comprehensive income reflected above. Reinsurance – Credit Losses The estimation of reinsurance recoverables involves a significant amount of judgment, particularly for latent exposures, such as asbestos, due to their long-tail nature. Reinsurance assets include reinsurance recoverables on unpaid losses and loss adjustment expenses that are estimated as part of our loss reserving process and, consequently, are subject to similar judgments and uncertainties as the estimation of gross loss reserves. Similarly, Other assets include reinsurance recoverables for contracts which are accounted for as deposits. We assess the collectability of reinsurance recoverable balances in each reporting period, through either historical trends of disputes and credit events or financial analysis of the credit quality of the reinsurer. We record adjustments to reflect the results of these assessments through an allowance for credit losses and disputes on uncollectable reinsurance that reduces the carrying amount of reinsurance and other assets on the consolidated balance sheets (collectively, the reinsurance recoverable balances). This estimate requires significant judgment for which key considerations include: paid and unpaid amounts recoverable; whether the balance is in dispute or subject to legal collection; the relative financial health of the reinsurer as determined by the Obligor Risk Ratings (ORRs) we assign to each reinsurer based upon our financial reviews; insurers that are financially troubled (i.e., in run-off, have voluntarily or involuntarily been placed in receivership, are insolvent, are in the process of liquidation or otherwise subject to formal or informal regulatory restriction) are assigned ORRs that will generate a significant allowance; and whether collateral and collateral arrangements exist. An estimate of the reinsurance recoverable’s lifetime expected credit losses is established utilizing a probability of default and loss given default method, which reflects the reinsurer’s ORR rating. The allowance for credit losses excludes disputed amounts. An allowance for disputes is established for a reinsurance recoverable using the losses incurred model for contingencies. The total reinsurance recoverables as of March 31, 2021 were $ 78.2 billion. As of that date, utilizing AIG’s ORRs, (i) approximately 93 percent of the reinsurance recoverables were investment grade, of which 52 percent related to General Insurance and 41 percent related to Life and Retirement; (ii) approximately 6 percent of the reinsurance recoverables were non-investment grade, the majority of which related to General Insurance; (iii) less than one one As of March 31, 2021, approximately 73 percent of our non-investment grade reinsurance exposure related to captive insurers. These arrangements are typically collateralized by letters of credit, funds withheld or trust agreements. |
Liability for Unpaid Losses and Loss Adjustment Expenses (Loss Reserves) | Liability for Unpaid Losses and Loss Adjustment Expenses (Loss Reserves) Loss reserves represent the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and loss adjustment expenses, 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, except to the extent such adjustment impacts a deferred gain under a retroactive reinsurance agreement, in which case the ceded portion would be amortized into pre-tax income in subsequent periods. 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. Given the uncertainties around the impact from the COVID-19 crisis, including the significant global economic slowdown, the full impact of COVID-19 and how it may ultimately impact the results of our insurance operations remains uncertain. In addition, in response to the crisis, new governmental, legislative and regulatory initiatives have been put in place and continue to be developed that could result in additional restrictions and requirements relating to our policies that may have a negative impact on our business operations. However, we have recorded our estimate of the ultimate liability for claims that have occurred as of the balance sheet date associated with COVID-19 which reflects our expectations given the current facts and circumstances. We will continue to monitor and review the impact. 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. |
Accounting Standards Adopted During 2021 and Future Application of Accounting Standards | Accounting Standards Adopted During 2021 Income Tax On December 18, 2019, the FASB issued an accounting standard that simplifies the accounting for income taxes by eliminating certain exceptions to the incremental 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. We adopted the standard on its effective date of January 1, 2021. The impact of adoption was not material to our consolidated financial condition, results of operations and cash flows. Clarification of Accounting for Certain Equity Method Investments On January 16, 2020, the FASB issued an accounting standard to clarify how a previously issued standard regarding a company’s ability to measure the fair value of certain equity securities without a readily determinable fair value should interact with equity method investments standards. The previously issued standard provides that such equity securities could be measured at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs (measurement alternative). The new standard clarifies that a company should consider observable transactions that require the company to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with the equity method immediately before applying or upon discontinuing the equity method. The standard further clarifies that, when determining the accounting for certain forward contracts and purchased options a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. We adopted the standard prospectively on its effective date of January 1, 2021. The adoption of the standard did not have a material impact on our consolidated financial condition, results of operations or cash flows. Future Application of Accounting Standards 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 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 November 2020, the FASB issued ASU 2020-11, which deferred the effective date of the standard for all entities. Our implementation efforts are underway for the standard’s revised effective date of January 1, 2023; we continue to evaluate 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. Reference Rate Reform On March 12, 2020, the FASB issued an accounting standard that provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The standard allows us to account for certain contract modifications that result from the discontinuation of the London Inter-Bank Offered Rate (LIBOR) or another reference rate as a continuation of the existing contract without additional analysis. Where permitted by the guidance, we would account for the modification due to the discontinuation of LIBOR or another reference rate as a continuation of the existing contract. As part of our implementation efforts, we will continue to assess our operational readiness and current and alternative reference rates’ merits, limitations, risks and suitability for our investment and insurance processes. This standard may be elected and applied prospectively over time from March 12, 2020 through December 31, 2022 as reference rate reform activities occur. The adoption of the standard is not expected to have a material impact on our reported consolidated financial condition, results of operations, cash flows and required disclosures. |
Credit Losses | Reinsurance – Credit Losses The estimation of reinsurance recoverables involves a significant amount of judgment, particularly for latent exposures, such as asbestos, due to their long-tail nature. Reinsurance assets include reinsurance recoverables on unpaid losses and loss adjustment expenses that are estimated as part of our loss reserving process and, consequently, are subject to similar judgments and uncertainties as the estimation of gross loss reserves. Similarly, Other assets include reinsurance recoverables for contracts which are accounted for as deposits. We assess the collectability of reinsurance recoverable balances in each reporting period, through either historical trends of disputes and credit events or financial analysis of the credit quality of the reinsurer. We record adjustments to reflect the results of these assessments through an allowance for credit losses and disputes on uncollectable reinsurance that reduces the carrying amount of reinsurance and other assets on the consolidated balance sheets (collectively, the reinsurance recoverable balances). This estimate requires significant judgment for which key considerations include: paid and unpaid amounts recoverable; whether the balance is in dispute or subject to legal collection; the relative financial health of the reinsurer as determined by the Obligor Risk Ratings (ORRs) we assign to each reinsurer based upon our financial reviews; insurers that are financially troubled (i.e., in run-off, have voluntarily or involuntarily been placed in receivership, are insolvent, are in the process of liquidation or otherwise subject to formal or informal regulatory restriction) are assigned ORRs that will generate a significant allowance; and whether collateral and collateral arrangements exist. An estimate of the reinsurance recoverable’s lifetime expected credit losses is established utilizing a probability of default and loss given default method, which reflects the reinsurer’s ORR rating. The allowance for credit losses excludes disputed amounts. An allowance for disputes is established for a reinsurance recoverable using the losses incurred model for contingencies. The total reinsurance recoverables as of March 31, 2021 were $ 78.2 billion. As of that date, utilizing AIG’s ORRs, (i) approximately 93 percent of the reinsurance recoverables were investment grade, of which 52 percent related to General Insurance and 41 percent related to Life and Retirement; (ii) approximately 6 percent of the reinsurance recoverables were non-investment grade, the majority of which related to General Insurance; (iii) less than one one As of March 31, 2021, approximately 73 percent of our non-investment grade reinsurance exposure related to captive insurers. These arrangements are typically collateralized by letters of credit, funds withheld or trust agreements. Reinsurance Recoverable Allowance The following table presents a rollforward of the reinsurance recoverable allowance: Three Months Ended March 31, 2021 2020 General Life and General Life and (in millions) Insurance Retirement Total Insurance Retirement Total Balance, beginning of year $ 292 $ 83 $ 375 $ 111 $ 40 $ 151 Initial allowance upon CECL adoption - - - 202 22 224 Current period provision for expected credit losses and disputes 1 4 5 ( 4) 2 ( 2) Write-offs charged against the allowance for credit losses and disputes ( 4) - ( 4) ( 3) ( 4) ( 7) Other changes 2 - 2 ( 4) - ( 4) Balance, end of period $ 291 $ 87 $ 378 $ 302 $ 60 $ 362 There were no material recoveries of credit losses previously written off for the three-month period ended March 31, 2021. There were no recoveries of credit losses previously written off for the three-month period ended March 31, 2020. Past-Due Status We consider a reinsurance asset to be past due when it is 90 days past due. The allowance for credit losses is estimated excluding disputed amounts. An allowance for disputes is established using the losses incurred method for contingencies. Past due balances on claims that are not in dispute were not material for any of the periods presented. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
SEGMENT INFORMATION | |
Schedule of continuing operations by operating segment including reconciling items | Three Months Ended March 31, 2021 2020 Adjusted Adjusted Adjusted Pre-tax Adjusted Pre-tax (in millions) Revenues Income (Loss) Revenues Income (Loss) General Insurance North America $ 2,388 $ ( 202) (a) $ 2,731 $ ( 103) (a) International 3,478 275 (a) 3,348 16 (a) Net investment income 772 772 588 588 Total General Insurance 6,638 845 6,667 501 Life and Retirement Individual Retirement 1,477 532 1,368 305 Group Retirement 806 307 694 143 Life Insurance 1,333 ( 40) 1,200 78 Institutional Markets 364 142 1,024 75 Total Life and Retirement 3,980 941 4,286 601 Other Operations Other Operations before consolidation and eliminations 324 ( 354) 315 ( 835) AIG consolidation and eliminations ( 180) ( 176) ( 141) ( 87) Total Other Operations 144 ( 530) 174 ( 922) Total 10,762 1,256 11,127 180 Reconciling items to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 18 22 14 ( 7) Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains - ( 203) - ( 538) Changes in the fair value of equity securities 22 22 ( 191) ( 191) Other income (expense) - net ( 6) - 10 - Gain (loss) on extinguishment of debt - 8 - ( 17) Net investment income on Fortitude Re funds withheld assets 486 486 - - Net realized capital gains on Fortitude Re funds withheld assets 173 173 - - Net realized capital gains on Fortitude Re funds withheld embedded derivative 2,382 2,382 - - Net realized capital gains (b) 617 627 3,477 3,494 Income (loss) from divested businesses - 7 - ( 216) Non-operating litigation reserves and settlements - - 6 6 Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - 19 - 8 Net loss reserve discount benefit (charge) - 32 - ( 56) Integration and transaction costs associated with acquiring or divesting businesses - ( 9) - ( 2) Restructuring and other costs - ( 74) - ( 90) Non-recurring costs related to regulatory or accounting changes - ( 20) - ( 13) Revenues and pre-tax income $ 14,454 $ 4,728 $ 14,443 $ 2,558 (a) General Insurance North America’s and General Insurance International’s Adjusted pre-tax income does not include Net investment income as the investment portfolio results are managed at the General Insurance level. Net investment income is shown separately as a component of General Insurance’s total Adjusted pre-tax income results. (b) 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 and net realized gains and losses on Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets). |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
Assets and liabilities measured at fair value on a recurring basis | March 31, 2021 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 $ 32 $ 3,945 $ - $ - $ - $ 3,977 Obligations of states, municipalities and political subdivisions - 13,243 1,896 - - 15,139 Non-U.S. governments 115 15,066 6 - - 15,187 Corporate debt - 162,314 2,570 - - 164,884 RMBS - 18,644 11,464 - - 30,108 CMBS - 14,045 1,104 - - 15,149 CDO/ABS - 8,966 9,602 - - 18,568 Total bonds available for sale 147 236,223 26,642 - - 263,012 Other bond securities: U.S. government and government sponsored entities - 1,751 - - - 1,751 Non-U.S. governments - - - - - - Corporate debt - 12 - - - 12 RMBS - 256 126 - - 382 CMBS - 268 46 - - 314 CDO/ABS - 168 2,346 - - 2,514 Total other bond securities - 2,455 2,518 - - 4,973 Equity securities 1,012 20 128 - - 1,160 Other invested assets (b) - 101 1,897 - - 1,998 Derivative assets (c) Interest rate contracts 2 3,622 - - - 3,624 Foreign exchange contracts - 1,068 1 - - 1,069 Equity contracts 2 341 237 - - 580 Credit contracts - - 1 - - 1 Other contracts - - 13 - - 13 Counterparty netting and cash collateral - - - ( 3,080) ( 1,314) ( 4,394) Total derivative assets 4 5,031 252 ( 3,080) ( 1,314) 893 Short-term investments 2,029 2,397 - - - 4,426 Other assets - - 113 - - 113 Separate account assets 98,876 3,813 - - - 102,689 Total $ 102,068 $ 250,040 $ 31,550 $ ( 3,080) $ ( 1,314) $ 379,264 Liabilities: Policyholder contract deposits $ - $ - $ 7,617 $ - $ - $ 7,617 Derivative liabilities (c) Interest rate contracts - 4,904 - - - 4,904 Foreign exchange contracts - 853 1 - - 854 Equity contracts 13 57 15 - - 85 Credit contracts - 20 45 - - 65 Other contracts - - 4 - - 4 Counterparty netting and cash collateral - - - ( 3,080) ( 2,129) ( 5,209) Total derivative liabilities 13 5,834 65 ( 3,080) ( 2,129) 703 Fortitude Re funds withheld payable - - 3,487 - - 3,487 Other liabilities - - - - - - Long-term debt - 2,015 - - - 2,015 Total $ 13 $ 7,849 $ 11,169 $ ( 3,080) $ ( 2,129) $ 13,822 December 31, 2020 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 $ 73 $ 4,053 $ - $ - $ - $ 4,126 Obligations of states, municipalities and political subdivisions - 14,019 2,105 - - 16,124 Non-U.S. governments 28 15,312 5 - - 15,345 Corporate debt - 166,949 2,349 - - 169,298 RMBS - 19,771 11,694 - - 31,465 CMBS - 15,211 922 - - 16,133 CDO/ABS - 9,191 9,814 - - 19,005 Total bonds available for sale 101 244,506 26,889 - - 271,496 Other bond securities: U.S. government and government sponsored entities - 1,845 - - - 1,845 Non-U.S. governments - - - - - - Corporate debt - 12 - - - 12 RMBS - 290 139 - - 429 CMBS - 273 47 - - 320 CDO/ABS - 173 2,512 - - 2,685 Total other bond securities - 2,593 2,698 - - 5,291 Equity securities 929 76 51 - - 1,056 Other invested assets (b) - 102 1,827 - - 1,929 Derivative assets (c) Interest rate contracts - 4,637 - - - 4,637 Foreign exchange contracts - 1,020 2 - - 1,022 Equity contracts 9 923 198 - - 1,130 Credit contracts - - 2 - - 2 Other contracts - - 14 - - 14 Counterparty netting and cash collateral - - - ( 3,812) ( 2,219) ( 6,031) Total derivative assets 9 6,580 216 ( 3,812) ( 2,219) 774 Short-term investments 2,379 3,589 - - - 5,968 Other assets - - 113 - - 113 Separate account assets 96,560 3,730 - - - 100,290 Total $ 99,978 $ 261,176 $ 31,794 $ ( 3,812) $ ( 2,219) $ 386,917 Liabilities: Policyholder contract deposits $ - $ - $ 9,798 $ - $ - $ 9,798 Derivative liabilities (c) Interest rate contracts 1 4,435 - - - 4,436 Foreign exchange contracts - 1,090 - - - 1,090 Equity contracts 14 162 47 - - 223 Credit contracts - 23 44 - - 67 Other contracts - - 6 - - 6 Counterparty netting and cash collateral - - - ( 3,812) ( 1,441) ( 5,253) Total derivative liabilities 15 5,710 97 ( 3,812) ( 1,441) 569 Fortitude Re funds withheld payable - - 6,042 - - 6,042 Other liabilities - 1 - - - 1 Long-term debt - 2,097 - - - 2,097 Total $ 15 $ 7,808 $ 15,937 $ ( 3,812) $ ( 1,441) $ 18,507 (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 $ 6.7 billion and $ 6.5 billion as of March 31, 2021 and December 31, 2020, respectively. (c) Presented as part of Other assets and Other liabilities on the Condensed Consolidated Balance Sheets. |
Changes in Level 3 recurring fair value measurements (Assets) | Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive Gains Issuances (Losses) Included Income (Loss) for Fair Value (Losses) Other and Gross Gross Reclassification Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers of Held End Instruments Held Instruments Held (in millions) of Period in Income Income (Loss) Net In Out for Sale of Period at End of Period at End of Period Three Months Ended March 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,105 $ 3 $ ( 159) $ ( 53) $ - $ - $ - $ 1,896 $ - $ ( 10) Non-U.S. governments 5 - - - 1 - - 6 - - Corporate debt 2,349 ( 1) ( 10) 177 187 ( 132) - 2,570 - ( 159) RMBS 11,694 167 64 ( 431) - ( 30) - 11,464 - ( 14) CMBS 922 9 ( 56) 173 56 - - 1,104 - ( 56) CDO/ABS 9,814 16 ( 14) ( 164) 454 ( 504) - 9,602 - 64 Total bonds available for sale 26,889 194 ( 175) ( 298) 698 ( 666) - 26,642 - ( 175) Other bond securities: RMBS 139 3 - ( 16) - - - 126 ( 98) - CMBS 47 ( 1) - ( 6) 6 - - 46 ( 2) - CDO/ABS 2,512 ( 11) - ( 155) - - - 2,346 2 - Total other bond securities 2,698 ( 9) - ( 177) 6 - - 2,518 ( 98) - Equity securities 51 11 3 ( 11) 75 ( 1) - 128 3 - Other invested assets 1,827 142 ( 6) ( 66) - - - 1,897 123 - Other assets 113 - - - - - - 113 - - Total $ 31,578 $ 338 $ ( 178) $ ( 552) $ 779 $ ( 667) $ - $ 31,298 $ 28 $ ( 175) Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive (Gains) Issuances (Losses) Included Income (Loss) for Fair Value Losses Other and Gross Gross Reclassification Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers of Held End Instruments Held Instruments Held (in millions) of Period in Income Income (Loss) Net In Out for Sale of Period at End of Period at End of Period Liabilities: Policyholder contract deposits $ 9,798 $ ( 2,260) $ - $ 79 $ - $ - $ - $ 7,617 $ 2,570 $ - Derivative liabilities, net: Interest rate contracts - - - - - - - - - - Foreign exchange contracts ( 2) 1 - 1 - - - - ( 1) - Equity contracts ( 151) ( 26) - ( 85) - 40 - ( 222) ( 118) - Credit contracts 42 5 - ( 3) - - - 44 ( 3) - Other contracts ( 8) ( 17) - 16 - - - ( 9) 16 - Total derivative liabilities, net (a) ( 119) ( 37) - ( 71) - 40 - ( 187) ( 106) - Fortitude Re funds withheld payable 6,042 ( 2,382) - ( 173) - - - 3,487 2,955 - Total $ 15,721 $ ( 4,679) $ - $ ( 165) $ - $ 40 $ - $ 10,917 $ 5,419 $ - Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive Gains Issuances (Losses) Included Income (Loss) for Fair Value (Losses) Other and Gross Gross Reclassification Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers of Held End Instruments Held Instruments Held (in millions) of Period in Income Income (Loss) Net In Out for Sale of Period at End of Period at End of Period Three Months Ended March 31, 2020 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,121 $ 5 $ ( 55) $ 137 $ 27 $ ( 133) $ - $ 2,102 $ - $ ( 51) Non-U.S. governments - - - - 6 - - 6 - - Corporate debt 1,663 ( 67) ( 81) 7 103 ( 410) - 1,215 - ( 29) RMBS 13,408 132 ( 1,623) ( 223) 19 ( 26) - 11,687 - ( 1,505) CMBS 1,053 7 19 44 23 - - 1,146 - 21 CDO/ABS 7,686 17 ( 557) 47 1,603 ( 28) - 8,768 - ( 536) Total bonds available for sale 25,931 94 ( 2,297) 12 1,781 ( 597) - 24,924 - ( 2,100) Other bond securities: RMBS 143 ( 14) - 20 - - - 149 ( 14) - CMBS 50 ( 7) - ( 1) - - - 42 ( 8) - CDO/ABS 3,545 ( 173) - ( 994) - - - 2,378 ( 262) - Total other bond securities 3,738 ( 194) - ( 975) - - - 2,569 ( 284) - Equity securities 8 ( 1) 1 10 1 - - 19 - - Other invested assets 1,192 ( 4) - 129 150 - - 1,467 14 - Other assets 89 - - 5 - - ( 3) 91 - - Total $ 30,958 $ ( 105) $ ( 2,296) $ ( 819) $ 1,932 $ ( 597) $ ( 3) $ 29,070 $ ( 270) $ ( 2,100) Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive (Gains) Issuances (Losses) Included Income (Loss) for Fair Value Losses Other and Gross Gross Reclassification Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers of Held End Instruments Held Instruments Held (in millions) of Period in Income Income (Loss) Net In Out for Sale of Period at End of Period at End of Period Liabilities: Policyholder contract deposits $ 6,910 $ 1,171 $ - $ 72 $ - $ - $ - $ 8,153 $ ( 884) $ - Derivative liabilities, net: Interest rate contracts - - - - - - - - - - Foreign exchange contracts ( 6) 3 - 6 - - - 3 1 - Equity contracts ( 151) ( 26) - 34 - - - ( 143) ( 14) - Credit contracts 62 ( 124) - ( 14) - - - ( 76) 118 - Other contracts ( 7) ( 10) - 15 - - - ( 2) 10 - Total derivative liabilities, net (a) ( 102) ( 157) - 41 - - - ( 218) 115 - Total $ 6,808 $ 1,014 $ - $ 113 $ - $ - $ - $ 7,935 $ ( 769) $ - (a) 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 Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive Gains Issuances (Losses) Included Income (Loss) for Fair Value (Losses) Other and Gross Gross Reclassification Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers of Held End Instruments Held Instruments Held (in millions) of Period in Income Income (Loss) Net In Out for Sale of Period at End of Period at End of Period Three Months Ended March 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,105 $ 3 $ ( 159) $ ( 53) $ - $ - $ - $ 1,896 $ - $ ( 10) Non-U.S. governments 5 - - - 1 - - 6 - - Corporate debt 2,349 ( 1) ( 10) 177 187 ( 132) - 2,570 - ( 159) RMBS 11,694 167 64 ( 431) - ( 30) - 11,464 - ( 14) CMBS 922 9 ( 56) 173 56 - - 1,104 - ( 56) CDO/ABS 9,814 16 ( 14) ( 164) 454 ( 504) - 9,602 - 64 Total bonds available for sale 26,889 194 ( 175) ( 298) 698 ( 666) - 26,642 - ( 175) Other bond securities: RMBS 139 3 - ( 16) - - - 126 ( 98) - CMBS 47 ( 1) - ( 6) 6 - - 46 ( 2) - CDO/ABS 2,512 ( 11) - ( 155) - - - 2,346 2 - Total other bond securities 2,698 ( 9) - ( 177) 6 - - 2,518 ( 98) - Equity securities 51 11 3 ( 11) 75 ( 1) - 128 3 - Other invested assets 1,827 142 ( 6) ( 66) - - - 1,897 123 - Other assets 113 - - - - - - 113 - - Total $ 31,578 $ 338 $ ( 178) $ ( 552) $ 779 $ ( 667) $ - $ 31,298 $ 28 $ ( 175) Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive (Gains) Issuances (Losses) Included Income (Loss) for Fair Value Losses Other and Gross Gross Reclassification Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers of Held End Instruments Held Instruments Held (in millions) of Period in Income Income (Loss) Net In Out for Sale of Period at End of Period at End of Period Liabilities: Policyholder contract deposits $ 9,798 $ ( 2,260) $ - $ 79 $ - $ - $ - $ 7,617 $ 2,570 $ - Derivative liabilities, net: Interest rate contracts - - - - - - - - - - Foreign exchange contracts ( 2) 1 - 1 - - - - ( 1) - Equity contracts ( 151) ( 26) - ( 85) - 40 - ( 222) ( 118) - Credit contracts 42 5 - ( 3) - - - 44 ( 3) - Other contracts ( 8) ( 17) - 16 - - - ( 9) 16 - Total derivative liabilities, net (a) ( 119) ( 37) - ( 71) - 40 - ( 187) ( 106) - Fortitude Re funds withheld payable 6,042 ( 2,382) - ( 173) - - - 3,487 2,955 - Total $ 15,721 $ ( 4,679) $ - $ ( 165) $ - $ 40 $ - $ 10,917 $ 5,419 $ - Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive Gains Issuances (Losses) Included Income (Loss) for Fair Value (Losses) Other and Gross Gross Reclassification Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers of Held End Instruments Held Instruments Held (in millions) of Period in Income Income (Loss) Net In Out for Sale of Period at End of Period at End of Period Three Months Ended March 31, 2020 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,121 $ 5 $ ( 55) $ 137 $ 27 $ ( 133) $ - $ 2,102 $ - $ ( 51) Non-U.S. governments - - - - 6 - - 6 - - Corporate debt 1,663 ( 67) ( 81) 7 103 ( 410) - 1,215 - ( 29) RMBS 13,408 132 ( 1,623) ( 223) 19 ( 26) - 11,687 - ( 1,505) CMBS 1,053 7 19 44 23 - - 1,146 - 21 CDO/ABS 7,686 17 ( 557) 47 1,603 ( 28) - 8,768 - ( 536) Total bonds available for sale 25,931 94 ( 2,297) 12 1,781 ( 597) - 24,924 - ( 2,100) Other bond securities: RMBS 143 ( 14) - 20 - - - 149 ( 14) - CMBS 50 ( 7) - ( 1) - - - 42 ( 8) - CDO/ABS 3,545 ( 173) - ( 994) - - - 2,378 ( 262) - Total other bond securities 3,738 ( 194) - ( 975) - - - 2,569 ( 284) - Equity securities 8 ( 1) 1 10 1 - - 19 - - Other invested assets 1,192 ( 4) - 129 150 - - 1,467 14 - Other assets 89 - - 5 - - ( 3) 91 - - Total $ 30,958 $ ( 105) $ ( 2,296) $ ( 819) $ 1,932 $ ( 597) $ ( 3) $ 29,070 $ ( 270) $ ( 2,100) Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive (Gains) Issuances (Losses) Included Income (Loss) for Fair Value Losses Other and Gross Gross Reclassification Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers of Held End Instruments Held Instruments Held (in millions) of Period in Income Income (Loss) Net In Out for Sale of Period at End of Period at End of Period Liabilities: Policyholder contract deposits $ 6,910 $ 1,171 $ - $ 72 $ - $ - $ - $ 8,153 $ ( 884) $ - Derivative liabilities, net: Interest rate contracts - - - - - - - - - - Foreign exchange contracts ( 6) 3 - 6 - - - 3 1 - Equity contracts ( 151) ( 26) - 34 - - - ( 143) ( 14) - Credit contracts 62 ( 124) - ( 14) - - - ( 76) 118 - Other contracts ( 7) ( 10) - 15 - - - ( 2) 10 - Total derivative liabilities, net (a) ( 102) ( 157) - 41 - - - ( 218) 115 - Total $ 6,808 $ 1,014 $ - $ 113 $ - $ - $ - $ 7,935 $ ( 769) $ - (a) 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 Three Months Ended March 31, 2021 Assets: Bonds available for sale $ 185 $ 9 $ - $ 194 Other bond securities ( 31) 22 - ( 9) Equity securities 11 - - 11 Other invested assets 142 - - 142 Three Months Ended March 31, 2020 Assets: Bonds available for sale $ 198 $ ( 104) $ - $ 94 Other bond securities ( 462) 268 - ( 194) Equity securities - ( 1) - ( 1) Other invested assets ( 4) - - ( 4) Net Net Realized Investment Capital Other (in millions) Income (Gains) Losses Income Total Three Months Ended March 31, 2021 Liabilities: Policyholder contract deposits * $ - $ ( 2,260) $ - $ ( 2,260) Derivative liabilities, net - ( 23) ( 14) ( 37) Fortitude Re funds withheld payable - ( 2,382) - ( 2,382) Three Months Ended March 31, 2020 Liabilities: Policyholder contract deposits * $ - $ 1,171 $ - $ 1,171 Derivative liabilities, net - ( 143) ( 14) ( 157) * Primarily embedded derivatives. |
Gross components of purchases, sales, issuances and settlements, net | Issuances Purchases, Sales, and Issuances and (in millions) Purchases Sales Settlements (a) Settlements, Net (a) Three Months Ended March 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 8 $ ( 20) $ ( 41) $ ( 53) Non-U.S. governments - - - - Corporate debt 741 ( 1) ( 563) 177 RMBS 164 - ( 595) ( 431) CMBS 193 - ( 20) 173 CDO/ABS 376 ( 49) ( 491) ( 164) Total bonds available for sale 1,482 ( 70) ( 1,710) ( 298) Other bond securities: RMBS - - ( 16) ( 16) CMBS - ( 6) - ( 6) CDO/ABS - ( 39) ( 116) ( 155) Total other bond securities - ( 45) ( 132) ( 177) Equity securities - - ( 11) ( 11) Other invested assets 198 - ( 264) ( 66) Other assets - - - - Total assets $ 1,680 $ ( 115) $ ( 2,117) $ ( 552) Liabilities: Policyholder contract deposits $ - $ 191 $ ( 112) $ 79 Derivative liabilities, net ( 52) 1 ( 20) ( 71) Fortitude Re funds withheld payable - - ( 173) ( 173) Total liabilities $ ( 52) $ 192 $ ( 305) $ ( 165) Three Months Ended March 31, 2020 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 145 $ ( 2) $ ( 6) $ 137 Non-U.S. governments - - - - Corporate debt 112 ( 5) ( 100) 7 RMBS 336 - ( 559) ( 223) CMBS 53 ( 2) ( 7) 44 CDO/ABS 225 ( 22) ( 156) 47 Total bonds available for sale 871 ( 31) ( 828) 12 Other bond securities: RMBS 25 - ( 5) 20 CMBS - - ( 1) ( 1) CDO/ABS 35 ( 579) ( 450) ( 994) Total other bond securities 60 ( 579) ( 456) ( 975) Equity securities 10 - - 10 Other invested assets 174 - ( 45) 129 Other assets - - 5 5 Total assets $ 1,115 $ ( 610) $ ( 1,324) $ ( 819) Liabilities: Policyholder contract deposits $ - $ 222 $ ( 150) $ 72 Derivative liabilities, net ( 15) 8 48 41 Total liabilities $ ( 15) $ 230 $ ( 102) $ 113 (a) There were no issuances during the three-month periods ended March 31, 2021 and 2020. |
Significant unobservable inputs used for recurring fair value measurements | Fair Value at March 31, Valuation Range (in millions) 2021 Technique Unobservable Input (b) (Weighted Average) (c) Assets: Obligations of states, municipalities and political subdivisions $ 1,504 Discounted cash flow Yield 3.22% - 3.82% ( 3.52%) Corporate debt 1,682 Discounted cash flow Yield 2.29% - 7.33% ( 4.81%) RMBS (a) 10,933 Discounted cash flow Constant prepayment rate 3.75% - 14.76% ( 9.26%) Loss severity 28.90% - 75.98% ( 52.44%) Constant default rate 1.19% - 7.62% ( 4.41%) Yield 1.73% - 4.13% ( 2.93%) CDO/ABS (a) 8,361 Discounted cash flow Yield 1.95% - 4.82% ( 3.38%) CMBS 556 Discounted cash flow Yield 1.44% - 6.30% ( 3.83%) Liabilities (d) Embedded derivatives within Policyholder contract deposits: Variable annuity guaranteed minimum withdrawal benefits (GMWB) 1,884 Discounted cash flow Equity volatility 6.35% - 50.15% Base lapse rate 0.16% - 12.60% Dynamic lapse multiplier 50.00% - 143.00% Mortality multiplier (e) 38.00% - 147.00% Utilization 90.00% - 100.00% Equity / interest rate correlation 20.00% - 40.00% NPA (f) 0.10% - 1.38% Index annuities including certain GMWB 5,076 Discounted cash flow Lapse rate 0.38% - 50.00% Mortality multiplier (e) 24.00% - 180.00% Utilization (g) 80.00% - 100.00% Option budget 0.00% - 4.00% NPA (f) 0.10% - 1.38% Indexed life 614 Discounted cash flow Base lapse rate 0.00% - 37.97% Mortality rate 0.00% - 100.00% NPA (f) 0.10% - 1.38% Fair Value at December 31, Valuation Range (in millions) 2020 Technique Unobservable Input (b) (Weighted Average) (c) Assets: Obligations of states, municipalities and political subdivisions $ 1,670 Discounted cash flow Yield 2.82% - 3.39% ( 3.11%) Corporate debt 1,591 Discounted cash flow Yield 2.13% - 7.82% ( 4.97%) RMBS (a) 11,297 Discounted cash flow Constant prepayment rate 3.90% - 11.99% ( 7.94%) Loss severity 30.08% - 78.49% ( 54.29%) Constant default rate 1.45% - 6.19% ( 3.82%) Yield 1.69% - 4.25% ( 2.97%) CDO/ABS (a) 8,324 Discounted cash flow Yield 1.93% - 4.85% ( 3.39%) CMBS 541 Discounted cash flow Yield 0.92% - 5.89% ( 3.40%) Liabilities (d) Embedded derivatives within Policyholder contract deposits: GMWB 3,572 Discounted cash flow Equity volatility 6.45% - 50.85% Base lapse rate 0.16% - 12.60% Dynamic lapse multiplier 50.00% - 143.00% Mortality multiplier (e) 38.00% - 147.00% Utilization 90.00% - 100.00% Equity / interest rate correlation 20.00% - 40.00% NPA (f) 0.06% - 1.48% Index annuities including certain GMWB 5,538 Discounted cash flow Lapse rate 0.38% - 50.00% Mortality multiplier (e) 24.00% - 180.00% Utilization (g) 80.00% - 100.00% Option budget 0.00% - 4.00% NPA (f) 0.06% - 1.48% Indexed life 649 Discounted cash flow Base lapse rate 0.00% - 37.97% Mortality rate 0.00% - 100.00% NPA (f) 0.06% - 1.48% (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) The weighted averaging for fixed maturity securities is based on the estimated fair value of the securities. Because the valuation methodology for embedded derivatives within Policyholder contract deposits uses a range of inputs that vary at the contract level over the cash flow projection period, management believes that presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (d) The Fortitude Re funds withheld payable has been excluded from the above table. As discussed in Note 7, the Fortitude Re funds withheld payable is created through modified coinsurance (modco) and funds withheld reinsurance arrangements where the investments supporting the reinsurance agreements are withheld by, and continue to reside on AIG’s balance sheet. This embedded derivative is valued as a total return swap with reference to the fair value of the invested assets held by AIG. Accordingly, the unobservable inputs utilized in the valuation of the embedded derivative are a component of the invested assets supporting the reinsurance agreements that are held on AIG’s balance sheet. (e) Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table. (f) The non-performance risk adjustment (NPA) applied as a spread over risk-free curve for discounting. (g) The partial withdrawal utilization unobservable input range shown applies only to policies with guaranteed minimum withdrawal benefit riders that are accounted for as an embedded derivative. The total embedded derivative liability at March 31, 2021 and December 31, 2020 was approximately $ 694 million and $ 726 million, respectively. The remaining guaranteed minimum riders on the index annuities are valued under the accounting guidance for certain nontraditional long-duration contracts. |
Investments in certain entities carried at fair value using net asset value per share | March 31, 2021 December 31, 2020 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 $ 1,950 $ 1,869 $ 1,752 $ 1,960 Real assets Investments in real estate properties, agricultural and infrastructure assets, including power plants and other energy producing assets 927 540 908 445 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 213 201 167 171 Growth equity Funds that make investments in established companies for the purpose of growing their businesses 782 59 703 55 Mezzanine Funds that make investments in the junior debt and equity securities of leveraged companies 393 184 400 155 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 733 378 683 365 Total private equity funds 4,998 3,231 4,613 3,151 Hedge funds: Event-driven Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations 429 - 411 - Long-short Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk 325 - 361 - Macro Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions 653 - 807 - 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 310 1 301 1 Total hedge funds 1,717 1 1,880 1 Total $ 6,715 $ 3,232 $ 6,493 $ 3,152 |
Gains or losses related to the eligible instruments for which AIG elected the fair value option | Three Months Ended March 31, Gain (Loss) (in millions) 2021 2020 Assets: Bond and equity securities $ ( 99) $ ( 60) Alternative investments (a) 417 ( 139) Liabilities: Long-term debt (b) 71 ( 203) Total gain (loss) $ 389 $ ( 402) (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 | March 31, 2021 December 31, 2020 Outstanding Outstanding (in millions) Fair Value Principal Amount Difference Fair Value Principal Amount Difference Liabilities: Long-term debt * $ 2,015 $ 1,452 $ 563 $ 2,097 $ 1,479 $ 618 * Includes GIAs, notes, bonds, loans and mortgages payable. |
Fair value assets measured on nonrecurring basis and impairment charges | Assets at Fair Value Impairment Charges Non-Recurring Basis Three Months Ended March 31, (in millions) Level 1 Level 2 Level 3 Total 2021 2020 March 31, 2021 Other investments $ - $ - $ 89 $ 89 $ 6 $ 11 Other assets - - - - - 12 Total $ - $ - $ 89 $ 89 $ 6 $ 23 December 31, 2020 Other investments $ - $ - $ 376 $ 376 Other assets - - 28 28 Total $ - $ - $ 404 $ 404 |
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 March 31, 2021 Assets: Mortgage and other loans receivable $ - $ 91 $ 47,635 $ 47,726 $ 45,468 Other invested assets - 830 6 836 836 Short-term investments - 10,028 - 10,028 10,028 Cash 2,796 - - 2,796 2,796 Other assets 223 15 - 238 238 Liabilities: Policyholder contract deposits associated with investment-type contracts - 202 142,655 142,857 130,953 Fortitude Re funds withheld payable - - 36,694 36,694 36,694 Other liabilities - 3,683 - 3,683 3,683 Long-term debt - 27,015 357 27,372 24,417 Debt of consolidated investment entities - 1,917 7,480 9,397 9,216 Separate account liabilities - investment contracts - 97,926 - 97,926 97,926 December 31, 2020 Assets: Mortgage and other loans receivable $ - $ 95 $ 48,541 $ 48,636 $ 45,562 Other invested assets - 837 6 843 843 Short-term investments - 12,235 - 12,235 12,235 Cash 2,827 - - 2,827 2,827 Other assets 209 14 - 223 223 Liabilities: Policyholder contract deposits associated with investment-type contracts - 214 144,357 144,571 130,435 Fortitude Re funds withheld payable - - 37,018 37,018 37,018 Other liabilities - 3,695 - 3,695 3,695 Long-term debt - 30,310 365 30,675 26,006 Debt of consolidated investment entities - 1,746 7,965 9,711 9,431 Separate account liabilities - investment contracts - 95,610 - 95,610 95,610 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Line Items] | |
Amortized cost or cost and fair value of available for sale securities | Amortized Allowance Gross Gross Cost or for Credit Unrealized Unrealized Fair (in millions) Cost Losses (a) Gains Losses Value March 31, 2021 Bonds available for sale: U.S. government and government sponsored entities $ 3,810 $ - $ 216 $ ( 49) $ 3,977 Obligations of states, municipalities and political subdivisions 13,617 - 1,570 ( 48) 15,139 Non-U.S. governments 14,728 ( 4) 707 ( 244) 15,187 Corporate debt 155,051 ( 103) 12,143 ( 2,207) 164,884 Mortgage-backed, asset-backed and collateralized: RMBS 27,417 ( 14) 2,799 ( 94) 30,108 CMBS 14,556 ( 1) 687 ( 93) 15,149 CDO/ABS 18,259 - 377 ( 68) 18,568 Total mortgage-backed, asset-backed and collateralized 60,232 ( 15) 3,863 ( 255) 63,825 Total bonds available for sale (b) $ 247,438 $ ( 122) $ 18,499 $ ( 2,803) $ 263,012 December 31, 2020 Bonds available for sale: U.S. government and government sponsored entities $ 3,640 $ - $ 503 $ ( 17) $ 4,126 Obligations of states, municipalities and political subdivisions 13,915 - 2,216 ( 7) 16,124 Non-U.S. governments 14,231 ( 4) 1,181 ( 63) 15,345 Corporate debt 150,111 ( 164) 19,905 ( 554) 169,298 Mortgage-backed, asset-backed and collateralized: RMBS 28,551 ( 16) 3,000 ( 70) 31,465 CMBS 15,182 ( 1) 1,023 ( 71) 16,133 CDO/ABS 18,707 ( 1) 425 ( 126) 19,005 Total mortgage-backed, asset-backed and collateralized 62,440 ( 18) 4,448 ( 267) 66,603 Total bonds available for sale (b) $ 244,337 $ ( 186) $ 28,253 $ ( 908) $ 271,496 (a) Represents the allowance for credit losses that has been recognized. Changes in the allowance for credit losses are recorded through Net realized capital gains and losses and are not recognized in other comprehensive income. (b) At March 31, 2021 and December 31, 2020, bonds available for sale held by us that were below investment grade or not rated totaled $ 27.9 billion and $ 28.2 billion, respectively. |
Securities available for sale in a loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (in millions) Value Losses Value Losses Value Losses March 31, 2021 Bonds available for sale: U.S. government and government sponsored entities $ 1,111 $ 38 $ 28 $ 11 $ 1,139 $ 49 Obligations of states, municipalities and political subdivisions 1,107 43 102 5 1,209 48 Non-U.S. governments 4,091 192 307 46 4,398 238 Corporate debt 34,646 1,874 5,054 252 39,700 2,126 RMBS 4,772 71 457 16 5,229 87 CMBS 2,240 64 543 28 2,783 92 CDO/ABS 4,908 45 1,531 23 6,439 68 Total bonds available for sale $ 52,875 $ 2,327 $ 8,022 $ 381 $ 60,897 $ 2,708 December 31, 2020 Bonds available for sale: U.S. government and government sponsored entities $ 649 $ 17 $ - $ - $ 649 $ 17 Obligations of states, municipalities and political subdivisions 267 4 78 3 345 7 Non-U.S. governments 1,287 28 262 33 1,549 61 Corporate debt 11,715 348 1,283 81 12,998 429 RMBS 3,486 40 282 18 3,768 58 CMBS 1,644 58 346 12 1,990 70 CDO/ABS 5,456 81 3,063 45 8,519 126 Total bonds available for sale $ 24,504 $ 576 $ 5,314 $ 192 $ 29,818 $ 768 |
Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity | Total Fixed Maturity Securities Available for Sale Amortized Cost, (in millions) Net of Allowance Fair Value March 31, 2021 Due in one year or less $ 9,296 $ 9,388 Due after one year through five years 43,463 44,991 Due after five years through ten years 43,447 46,215 Due after ten years 90,893 98,593 Mortgage-backed, asset-backed and collateralized 60,217 63,825 Total $ 247,316 $ 263,012 |
Gross realized gains and gross realized losses from sales or maturities of available for sale securities | Three Months Ended March 31, 2021 2020 Gross Gross Gross Gross Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Fixed maturity securities $ 460 $ 71 $ 380 $ 166 |
Value of other securities measured at fair value based on election of the fair value option | March 31, 2021 December 31, 2020 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 1,751 29 % $ 1,845 29 % Corporate debt 12 - 12 - Mortgage-backed, asset-backed and collateralized: RMBS 382 6 429 7 CMBS 314 5 320 5 CDO/ABS and other collateralized 2,514 41 2,685 42 Total mortgage-backed, asset-backed and collateralized 3,210 52 3,434 54 Total fixed maturity securities 4,973 81 5,291 83 Equity securities 1,160 19 1,056 17 Total $ 6,133 100 % $ 6,347 100 % |
Carrying amounts values of other invested assets | March 31, December 31, (in millions) 2021 2020 Alternative investments (a) (b) $ 9,589 $ 9,572 Investment real estate (c) 8,172 7,930 All other investments (d) 1,629 1,558 Total $ 19,390 $ 19,060 (a) At March 31, 2021, included hedge funds of $ 2.0 billion, private equity funds of $ 7.4 billion and affordable housing partnerships of $ 202 million. At December 31, 2020, included hedge funds of $ 2.3 billion, private equity funds of $ 7.0 billion and affordable housing partnerships of $ 257 million. (b) At March 31, 2021, approximately 65 percent of our hedge fund portfolio is available for redemption in 2021. The remaining 35 percent will be available for redemption between 2022 and 2027. (c) Net of accumulated depreciation of $ 775 million and $ 756 million at March 31, 2021 and December 31, 2020, respectively. (d) Includes AIG’s 3.5 percent ownership interest in Fortitude Holdings which is recorded using the measurement alternative for equity securities and is carried at cost, which was $ 100 million as of March 31, 2021 and December 31, 2020. |
Components of net investment income | Three Months Ended March 31, 2021 2020 Excluding Fortitude Fortitude Re Re Funds Funds Withheld (in millions) Withheld Assets Assets Total Available for sale fixed maturity securities, including short-term investments $ 2,178 $ 377 $ 2,555 $ 2,609 Other fixed maturity securities (a) ( 102) - ( 102) ( 60) Equity securities 22 - 22 ( 191) Interest on mortgage and other loans 414 47 461 513 Alternative investments (b) 572 69 641 ( 59) Real estate 59 - 59 59 Other investments (c) 140 1 141 ( 215) Total investment income 3,283 494 3,777 2,656 Investment expenses 112 8 120 148 Net investment income $ 3,171 $ 486 $ 3,657 $ 2,508 (a) Included in the three-month periods ended March 31, 2021 and 2020 were losses of $ 81 million and income of $ 169 million, respectively, related to fixed maturity securities measured at fair value that economically hedge liabilities described in (c) below. (b) Included income from hedge funds, private equity funds and affordable housing partnerships. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag. (c) Included in the three-month periods ended March 31, 2021 and 2020 were income of $ 83 million and losses of $ 202 million, respectively, related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above. Net Realized Capital Gains and Losses |
Components of net realized capital gains (losses) | Three Months Ended March 31, 2021 2020 Excluding Fortitude Re Fortitude Re Funds Funds Withheld (in millions) Withheld Assets Assets Total Sales of fixed maturity securities $ 94 $ 295 $ 389 $ 214 Intent to sell - - - - Change in allowance for credit losses on fixed maturity securities 51 2 53 ( 198) Change in allowance for credit losses on loans 41 ( 5) 36 ( 38) Foreign exchange transactions ( 49) ( 6) ( 55) ( 254) Variable annuity embedded derivatives, net of related hedges 89 - 89 2,192 All other derivatives and hedge accounting 351 ( 117) 234 1,559 Other 118 4 122 44 Net realized capital gains – excluding Fortitude Re funds withheld embedded derivative 695 173 868 3,519 Net realized capital gains (losses) on Fortitude Re funds withheld embedded derivative - 2,382 2,382 - Net realized capital gains $ 695 $ 2,555 $ 3,250 $ 3,519 |
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments | The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments: Three Months Ended March 31, (in millions) 2021 2020 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ ( 11,649) $ ( 10,455) Total increase (decrease) in unrealized appreciation (depreciation) of investments $ ( 11,649) $ ( 10,455) 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: Other Invested (in millions) Equities Assets Total Three Months Ended March 31, 2021 Net gains recognized during the period on equity securities $ 22 $ 470 $ 492 Less: Net gains (losses) recognized during the period on equity securities sold during the period ( 21) 24 3 Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 43 $ 446 $ 489 Three Months Ended March 31, 2020 Net losses recognized during the period on equity securities $ ( 191) $ ( 129) $ ( 320) Less: Net gains recognized during the period on equity securities sold during the period 12 2 14 Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ ( 203) $ ( 131) $ ( 334) |
Rollforward of changes in allowance for credit losses on available for sale fixed maturity securities by major investment category | Three Months Ended March 31, 2021 2020 Non- Non- (in millions) Structured Structured Total Structured Structured Total Balance, beginning of year * $ 17 $ 169 $ 186 $ 7 $ - $ 7 Additions: Securities for which allowance for credit losses were not previously recorded 2 13 15 24 174 198 Purchases of available for sale debt securities accounted for as purchased credit deteriorated assets - - - 6 - 6 Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets - - - - - - Reductions: Securities sold during the period ( 1) ( 4) ( 5) - - - Intent to sell security or more likely than not will be required to sell the security before recovery of its amortized cost basis - - - - - - Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intent to sell before recovery amortized cost basis ( 4) ( 64) ( 68) - - - Write-offs charged against the allowance - ( 6) ( 6) - - - Recoveries of amounts previously written off - - - - - - Other - - - - - - Balance, end of period $ 14 $ 108 $ 122 $ 37 $ 174 $ 211 * The beginning balance incorporates the Day 1 gross up on purchased credit deteriorated (PCD) assets held as of January 1, 2020. |
Schedule of fair value of securities pledged to counterparties under secured financing transactions | (in millions) March 31, 2021 December 31, 2020 Fixed maturity securities available for sale $ 3,552 $ 3,636 |
Schedule of fair value of securities pledged under repurchase agreements by collateral type and by remaining contractual maturity | Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2021 Bonds available for sale: Non-U.S. governments $ 67 $ - $ - $ - $ - $ 67 Corporate debt 95 86 - - - 181 Total $ 162 $ 86 $ - $ - $ - $ 248 December 31, 2020 Bonds available for sale: Non-U.S. governments $ 63 $ - $ - $ - $ - $ 63 Corporate debt 96 97 - - - 193 Total $ 159 $ 97 $ - $ - $ - $ 256 Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2021 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ 104 $ - $ - $ - $ 104 Non-U.S. governments - - 32 85 - 117 Corporate debt - 835 2,009 239 - 3,083 Total $ - $ 939 $ 2,041 $ 324 $ - $ 3,304 December 31, 2020 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ - $ 103 $ - $ - $ 103 Non-U.S. governments - - - - - - Corporate debt - 982 2,295 - - 3,277 Total $ - $ 982 $ 2,398 $ - $ - $ 3,380 |
Schedule of fair value of securities pledged to the entity under reverse repurchase agreements | (in millions) March 31, 2021 December 31, 2020 Securities collateral pledged to us $ 3,407 $ 5,359 |
LENDING ACTIVITIES (Tables)
LENDING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
LENDING ACTIVITIES | |
Composition of Mortgages and other loans receivable | March 31, December 31, (in millions) 2021 2020 Commercial mortgages (a) $ 36,418 $ 36,424 Residential mortgages 4,159 4,645 Life insurance policy loans 1,949 1,986 Commercial loans, other loans and notes receivable 3,729 3,321 Total mortgage and other loans receivable 46,255 46,376 Allowance for credit losses (b) ( 787) ( 814) Mortgage and other loans receivable, net $ 45,468 $ 45,562 (a) 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 24 percent and 10 percent, respectively, at March 31, 2021 and 24 percent and 10 percent, respectively, at December 31, 2020). (b) Does not include allowance for credit losses of $ 70 million and $ 79 million, respectively, at March 31, 2021 and December 31, 2020, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities. |
Schedule of debt service coverage ratio and loan-to-value ratio for the commercial mortgage loans | March 31, 2021 (in millions) 2021 2020 2019 2018 2017 Prior Total >1.2X $ 514 $ 1,958 $ 5,346 $ 5,391 $ 3,861 $ 14,846 $ 31,916 1.00 - 1.20X - 871 769 610 182 1,261 3,693 <1.00X 91 - - 339 88 291 809 Total commercial mortgages $ 605 $ 2,829 $ 6,115 $ 6,340 $ 4,131 $ 16,398 $ 36,418 December 31, 2020 (in millions) 2020 2019 2018 2017 2016 Prior Total >1.2X $ 1,914 $ 5,596 $ 5,649 $ 3,941 $ 4,592 $ 10,730 $ 32,422 1.00 - 1.20X 770 467 456 144 161 1,106 3,104 <1.00X 4 86 343 87 96 282 898 Total commercial mortgages $ 2,688 $ 6,149 $ 6,448 $ 4,172 $ 4,849 $ 12,118 $ 36,424 March 31, 2021 (in millions) 2021 2020 2019 2018 2017 Prior Total Less than 65% $ 51 $ 2,637 $ 3,552 $ 4,182 $ 2,671 $ 10,324 $ 23,417 65% to 75% 218 192 2,499 1,958 1,015 4,172 10,054 76% to 80% - - 45 - - 861 906 Greater than 80% 336 - 19 200 445 1,041 2,041 Total commercial mortgages $ 605 $ 2,829 $ 6,115 $ 6,340 $ 4,131 $ 16,398 $ 36,418 December 31, 2020 (in millions) 2020 2019 2018 2017 2016 Prior Total Less than 65% $ 2,382 $ 3,755 $ 3,855 $ 2,565 $ 2,852 $ 8,145 $ 23,554 65% to 75% 274 2,330 2,363 1,306 1,200 2,551 10,024 76% to 80% 28 45 30 - 70 515 688 Greater than 80% 4 19 200 301 727 907 2,158 Total commercial mortgages $ 2,688 $ 6,149 $ 6,448 $ 4,172 $ 4,849 $ 12,118 $ 36,424 (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 2.1X at March 31, 2021 and 2.2X at December 31, 2020. The debt service coverage ratios have been updated within the last three months. (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 59 percent at March 31, 2021 and was 60 percent at December 31, 2020. The loan-to-value ratios have been updated within the last three to nine months. |
Schedule of credit quality performance indicators for the commercial mortgages | Number Percent of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total (c) Total March 31, 2021 Credit Quality Performance Indicator: In good standing 678 $ 14,141 $ 10,433 $ 5,096 $ 3,708 $ 2,011 $ 462 $ 35,851 98 % Restructured (a) 9 - 141 50 - 136 - 327 1 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure 4 - 68 57 - 115 - 240 1 Total (b) 691 $ 14,141 $ 10,642 $ 5,203 $ 3,708 $ 2,262 $ 462 $ 36,418 100 % Allowance for credit losses $ 135 $ 270 $ 140 $ 48 $ 56 $ 13 $ 662 2 % December 31, 2020 Credit Quality Performance Indicator: In good standing 688 $ 13,969 $ 10,506 $ 5,144 $ 3,766 $ 2,064 $ 460 $ 35,909 99 % Restructured (a) 5 - 52 50 - 4 - 106 - 90 days or less delinquent 3 - 87 - - 114 - 201 - >90 days delinquent or in process of foreclosure 4 - 67 55 - 86 - 208 1 Total (b) 700 $ 13,969 $ 10,712 $ 5,249 $ 3,766 $ 2,268 $ 460 $ 36,424 100 % Allowance for credit losses $ 145 $ 267 $ 145 $ 53 $ 65 $ 10 $ 685 2 % (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 Note 7 to the Consolidated Financial Statements in the 2020 Annual Report. (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. The following table presents credit quality performance indicators for residential mortgages by year of vintage: March 31, 2021 (in millions) 2021 2020 2019 2018 2017 Prior Total FICO*: 780 and greater $ 111 $ 873 $ 568 $ 217 $ 357 $ 836 $ 2,962 720 - 779 74 280 163 79 111 250 957 660 - 719 2 47 37 14 30 71 201 600 - 659 - 1 3 3 2 17 26 Less than 600 - - 1 1 2 9 13 Total residential mortgages $ 187 $ 1,201 $ 772 $ 314 $ 502 $ 1,183 $ 4,159 December 31, 2020 (in millions) 2020 2019 2018 2017 2016 Prior Total FICO*: 780 and greater $ 522 $ 619 $ 283 $ 469 $ 539 $ 484 $ 2,916 720 - 779 478 349 103 155 180 156 1,421 660 - 719 19 61 28 42 51 58 259 600 - 659 1 5 6 7 4 12 35 Less than 600 - - 1 2 2 9 14 Total residential mortgages $ 1,020 $ 1,034 $ 421 $ 675 $ 776 $ 719 $ 4,645 * Fair Isaac Corporation (FICO) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last three months. |
Schedule of changes in the allowance for credit losses on Mortgage and other loans receivable | Three Months Ended March 31, 2021 2020 Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 685 $ 129 $ 814 $ 336 $ 102 $ 438 Initial allowance upon CECL adoption - - - 311 7 318 Loans charged off - - - - - - Recoveries of loans previously charged off - - - - - - Net charge-offs - - - - - - Provision for (release of) loan losses ( 23) ( 4) ( 27) 42 ( 11) 31 Allowance, end of period $ 662 $ 125 $ 787 $ 689 $ 98 $ 787 (a) Does not include allowance for credit losses of $ 70 million and $ 58 million, respectively, at March 31, 2021 and 2020 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Effects of Reinsurance [Line Items] | |
Summary of the composition of pool of assets | March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Value Value Value Value Corresponding Accounting Policy Fixed maturity securities - available for sale (a) $ 33,280 $ 33,280 $ 36,047 $ 36,047 Fair value through other comprehensive income Fixed maturity securities - fair value option 185 185 200 200 Fair value through net investment income Commercial mortgage loans 3,713 3,957 3,679 4,010 Amortized cost Real estate investments 326 559 358 585 Amortized cost Private equity funds / hedge funds 1,216 1,216 1,168 1,168 Fair value through net investment income Policy loans 404 404 413 413 Amortized cost Short-term Investments 48 48 34 34 Fair value through net investment income Funds withheld investment assets 39,172 39,649 41,899 42,457 Derivative assets, net (b) - - ( 1) ( 1) Fair value through realized capital gains (losses) Other (c) 532 532 604 604 Amortized cost Total $ 39,704 $ 40,181 $ 42,502 $ 43,060 (a) The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $( 2.9) billion ($( 2.3) billion after-tax) for the three months ended March 31, 2021. (b) The derivative assets and liabilities have been presented net of collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 287 million and $ 12 million, respectively, as of March 31, 2021. The derivative assets supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 357 million as of December 31, 2020. These derivative assets and liabilities are fully collateralized. (c) Primarily comprised of Cash and Accrued investment income. |
Summary of the impact of funds withheld arrangements with Fortitude Re | Three Months Ended (in millions) March 31, 2021 Net underwriting income $ - Net investment income - Fortitude Re funds withheld assets 486 Net realized capital gains on Fortitude Re funds withheld assets: Net realized capital gains - Fortitude Re funds withheld assets 173 Net realized capital gains - Fortitude Re embedded derivatives 2,382 Net realized capital gains on Fortitude Re funds withheld assets 2,555 Income from continuing operations before income tax benefit 3,041 Income tax expense (a) 639 Net income 2,402 Change in unrealized appreciation of all other investments (a) ( 2,340) Comprehensive income $ 62 (a) The income tax expense (benefit) and the tax impact in AOCI was computed using AIG’s U.S. statutory tax rate of 21 percent. |
Schedule of rollfoward of allowance for credit losses | Three Months Ended March 31, 2021 2020 General Life and General Life and (in millions) Insurance Retirement Total Insurance Retirement Total Balance, beginning of year $ 292 $ 83 $ 375 $ 111 $ 40 $ 151 Initial allowance upon CECL adoption - - - 202 22 224 Current period provision for expected credit losses and disputes 1 4 5 ( 4) 2 ( 2) Write-offs charged against the allowance for credit losses and disputes ( 4) - ( 4) ( 3) ( 4) ( 7) Other changes 2 - 2 ( 4) - ( 4) Balance, end of period $ 291 $ 87 $ 378 $ 302 $ 60 $ 362 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entity Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | Real Estate and Affordable Investment Securitization Housing (in millions) Entities (d) Vehicles (e) Partnerships Other Total March 31, 2021 Assets: Bonds available for sale $ - $ 5,728 $ - $ - $ 5,728 Other bond securities - 2,226 - - 2,226 Equity securities 558 - - - 558 Mortgage and other loans receivable - 2,422 - - 2,422 Other invested assets Alternative investments (a) 2,860 - - - 2,860 Investment real estate 3,304 - 3,879 - 7,183 Short-term investments 174 1,071 - 20 1,265 Cash 129 - 249 - 378 Accrued investment income - 33 - - 33 Other assets 129 41 260 - 430 Other 26 - - 2 28 Total assets (b) $ 7,180 $ 11,521 $ 4,388 $ 22 $ 23,111 Liabilities: Debt of consolidated investment entities $ 2,529 $ 3,548 $ 2,515 $ - $ 8,592 Other (c) 169 397 198 9 773 Total liabilities $ 2,698 $ 3,945 $ 2,713 $ 9 $ 9,365 December 31, 2020 Assets: Bonds available for sale $ - $ 6,089 $ - $ - $ 6,089 Other bond securities - 2,367 - - 2,367 Equity securities 507 - - - 507 Mortgage and other loans receivable - 3,135 - - 3,135 Other invested assets Alternative investments (a) 2,689 - - - 2,689 Investment real estate 3,378 - 3,558 - 6,936 Short-term investments 365 1,534 - 27 1,926 Cash 129 - 203 - 332 Accrued investment income - 38 - - 38 Other assets 166 120 243 - 529 Other 3 - - 2 5 Total assets (b) $ 7,237 $ 13,283 $ 4,004 $ 29 $ 24,553 Liabilities: Debt of consolidated investment entities $ 2,559 $ 3,961 $ 2,287 $ 2 $ 8,809 Other (c) 180 187 187 10 564 Total liabilities $ 2,739 $ 4,148 $ 2,474 $ 12 $ 9,373 (a) Comprised primarily of investments in real estate joint ventures at March 31, 2021 and December 31, 2020. (b) The assets of each VIE can be used only to settle specific obligations of that VIE. (c) Comprised primarily of Other liabilities at March 31, 2021 and December 31, 2020. (d) At March 31, 2021 and December 31, 2020, off-balance sheet exposure primarily consisting of our insurance companies’ commitments to real estate and investment entities were $ 2.2 billion and $ 2.4 billion, respectively, of which commitments to external parties were $ 0.6 billion and $ 0.7 billion, respectively. (e) At March 31, 2021 and December 31, 2020, AIG had contributed total assets of $ 10.8 billion and $ 12.5 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 March 31, 2021 Real estate and investment entities (a) $ 335,307 $ 6,482 $ 3,378 (c) $ 9,860 Affordable housing partnerships 2,429 300 1 301 Other 1,726 203 528 (d) 731 Total $ 339,462 $ 6,985 $ 3,907 $ 10,892 December 31, 2020 Real estate and investment entities (a) $ 321,716 $ 6,420 $ 3,273 (c) $ 9,693 Affordable housing partnerships 2,801 368 4 372 Other 1,733 195 546 (d) 741 Total $ 326,250 $ 6,983 $ 3,823 $ 10,806 (a) Comprised primarily of hedge funds and private equity funds. (b) At March 31, 2021 and December 31, 2020, $ 6.8 billion and $ 6.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (c) These amounts represent our unfunded commitments to invest in private equity funds and hedge funds. (d) 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) | 3 Months Ended |
Mar. 31, 2021 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
Notional amounts and fair values of derivative instruments | March 31, 2021 December 31, 2020 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 $ 877 $ 16 $ 295 $ 6 $ 815 $ 16 $ 356 $ 11 Foreign exchange contracts 6,232 380 4,135 293 3,468 256 7,424 379 Derivatives not designated as hedging instruments: (a) Interest rate contracts 49,790 3,608 47,401 4,898 62,259 4,621 48,732 4,425 Foreign exchange contracts 13,476 689 7,258 561 9,518 766 12,860 711 Equity contracts 23,163 580 7,830 85 22,924 1,130 7,076 223 Credit contracts (b) 4,796 1 958 65 5,797 2 969 67 Other contracts (c) 43,030 13 55 4 43,441 14 54 6 Total derivatives, gross $ 141,364 $ 5,287 $ 67,932 $ 5,912 $ 148,222 $ 6,805 $ 77,471 $ 5,822 Counterparty netting (d) ( 3,080) ( 3,080) ( 3,812) ( 3,812) Cash collateral (e) ( 1,314) ( 2,129) ( 2,219) ( 1,441) Total derivatives on Condensed Consolidated Balance Sheets (f) $ 893 $ 703 $ 774 $ 569 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b) As of March 31, 2021 and December 31, 2020, included CDSs on super senior multi-sector CDOs with a net notional amount of $ 125 million and $ 137 million (fair value liability of $ 44 million and $ 44 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 Other liabilities, respectively. Fair value of assets related to bifurcated embedded derivatives was zero at both March 31, 2021 and December 31, 2020. Fair value of liabilities related to bifurcated embedded derivatives was $ 11.1 billion and $ 15.8 billion, respectively, at March 31, 2021 and December 31, 2020. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in variable annuity products, which include equity and interest rate components, and the funds withheld arrangement with Fortitude Re. For additional information see Note 7 to the Condensed Consolidated Financial Statements . |
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 Three Months Ended March 31, 2021 Interest rate contracts: Interest credited to policyholder account balances $ ( 4) $ - $ 6 $ 2 Net investment income (loss) 8 - ( 7) 1 Foreign exchange contracts: Realized capital gains/(losses) 32 ( 29) ( 32) ( 29) Three Months Ended March 31, 2020 Interest rate contracts: Interest credited to policyholder account balances $ 17 $ - $ ( 17) $ - Net investment income (loss) ( 3) - 3 - Foreign exchange contracts: Realized capital gains/(losses) 305 281 ( 305) 281 (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 | Gains (Losses) Three Months Ended March 31, Recognized in Earnings (in millions) 2021 2020 By Derivative Type: Interest rate contracts $ ( 1,545) $ 2,573 Foreign exchange contracts ( 87) 1,025 Equity contracts ( 519) 1,103 Credit contracts ( 5) 122 Other contracts 15 10 Embedded derivatives 4,839 ( 1,052) Total $ 2,698 $ 3,781 By Classification: Policy fees $ 15 $ 15 Net investment income ( 12) ( 2) Net realized capital gains - excluding Fortitude Re funds withheld assets 440 3,752 Net realized capital gains on Fortitude Re funds withheld assets 2,265 - Policyholder benefits and claims incurred ( 10) 16 Total $ 2,698 $ 3,781 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Claims Development [Line Items] | |
Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense | The following table presents the rollforward of activity in Loss Reserves: Three Months Ended March 31, (in millions) 2021 2020 Liability for unpaid loss and loss adjustment expenses, beginning of period $ 77,720 $ 78,328 Reinsurance recoverable ( 34,431) ( 31,069) Initial allowance upon CECL adoption - 164 Net Liability for unpaid loss and loss adjustment expenses, beginning of period 43,289 47,423 Losses and loss adjustment expenses incurred : Current year 3,925 4,111 Prior years, excluding discount and amortization of deferred gain 16 ( 1) Prior years, discount charge (benefit) ( 18) 76 Prior years, amortization of deferred gain on retroactive reinsurance (a) ( 72) ( 75) Total losses and loss adjustment expenses incurred 3,851 4,111 Losses and loss adjustment expenses paid : Current year ( 328) ( 342) Prior years ( 3,584) ( 4,351) Total losses and loss adjustment expenses paid ( 3,912) ( 4,693) Other changes : Foreign exchange effect 244 ( 230) Allowance for credit losses - - Retroactive reinsurance adjustment (net of discount) (b) 89 22 Total other changes 333 ( 208) Liability for unpaid loss and loss adjustment expenses, end of period: Net liability for unpaid losses and loss adjustment expenses 43,561 46,633 Reinsurance recoverable 35,271 31,114 Total $ 78,832 $ 77,747 (a) Includes $ 17 million and $ 8 million for the retroactive reinsurance agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc. (Berkshire), covering U.S. asbestos exposures for the three-month periods ended March 31, 2021 and 2020, respectively. (b) Includes benefit (charge) from change in discount on retroactive reinsurance in the amount of $ 39 million and $ 72 million for the three-month periods ended March 31, 2021 and 2020, respectively. |
Schedule of components of the loss reserve discount | March 31, 2021 December 31, 2020 North North America Other America Other Commercial Operations Commercial Operations (in millions) Insurance Run-Off (b) Total Insurance Run-Off (b) Total U.S. workers' compensation $ 1,668 $ - $ 1,668 $ 1,636 $ - $ 1,636 Retroactive reinsurance ( 872) - ( 872) ( 911) - ( 911) Total reserve discount (a) $ 796 $ - $ 796 $ 725 $ - $ 725 (a) Excludes $ 158 million and $ 151 million of discount related to certain long tail liabilities in the UK at March 31, 2021 and December 31, 2020, respectively. (b) Excludes $ 513 million and $ 493 million, respectively, of discount which was percent ceded to Fortitude Re at March 31, 2021 and December 31, 2020. On June 2, 2020, we completed the Majority Interest Fortitude Sale. For additional information see Note 1 to the Condensed Consolidated Financial Statements. |
Schedule of loss reserve discount and loss reserve discount benefit (charge) | Three Months Ended March 31, 2021 2020 North North America Other America Other Commercial Operations Commercial Operations (in millions) Insurance Run-Off Total Insurance Run-Off Total Current accident year $ 14 $ - $ 14 $ 20 $ - $ 20 Accretion and other adjustments to prior year discount 18 - 18 ( 67) ( 9) ( 76) Effect of interest rate changes - - - - - - Net reserve discount benefit (charge) 32 - 32 ( 47) ( 9) ( 56) Change in discount on loss reserves ceded under retroactive reinsurance 39 - 39 72 - 72 Net change in total reserve discount * $ 71 $ - $ 71 $ 25 $ ( 9) $ 16 * Excludes $ 7 million and $( 2) million discount related to certain long tail liabilities in the UK for the three-month periods ended March 31, 2021 and 2020, respectively. |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Class of Stock [Line Items] | |
Rollforward of common stock outstanding | Three Months Ended March 31, 2021 Common Treasury Common Stock Stock Issued Stock Outstanding Shares, beginning of year 1,906,671,492 ( 1,045,113,443) 861,558,049 Shares issued - 5,857,575 5,857,575 Shares repurchased - ( 8,032,171) ( 8,032,171) Shares, end of period 1,906,671,492 ( 1,047,288,039) 859,383,453 |
Dividends Paid | The following table presents declaration date, record date, payment date and dividends paid per common share on AIG Common Stock in the three months ended March 31, 2021 and 2020: Dividends Paid Declaration Date Record Date Payment Date Per Common Share February 16, 2021 March 16, 2021 March 30, 2021 0.32 February 12, 2020 March 16, 2020 March 30, 2020 0.32 |
Repurchases Of Common Stock and Warrant | The following table presents repurchases of AIG Common Stock: Three Months Ended March 31, (in millions) 2021 2020 Aggregate repurchases of common stock $ 362 $ 500 Total number of common shares repurchased 8 12 Aggregate repurchases of warrants $ - $ - Total number of warrants repurchased - - |
Accumulated Other Comprehensive Income (Loss) | Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total Balance, December 31, 2020, net of tax $ ( 95) $ 17,093 $ ( 2,267) $ ( 1,228) $ 8 $ 13,511 Change in unrealized appreciation (depreciation) of investments 41 ( 11,690) - - - ( 11,649) Change in deferred policy acquisition costs adjustment and other ( 2) 1,393 - - - 1,391 Change in future policy benefits - 1,145 - - - 1,145 Change in foreign currency translation adjustments - - 170 - - 170 Change in net actuarial gain - - - ( 1) - ( 1) Change in prior service cost - - - 2 - 2 Change in deferred tax asset (liability) ( 6) 1,953 ( 45) ( 4) - 1,898 Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - ( 1) ( 1) Total other comprehensive income (loss) 33 ( 7,199) 125 ( 3) ( 1) ( 7,045) Noncontrolling interests - - - - - - Balance, March 31, 2021, net of tax $ ( 62) $ 9,894 $ ( 2,142) $ ( 1,231) $ 7 $ 6,466 Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total Balance, December 31, 2019, net of tax $ - $ 8,722 $ ( 2,625) $ ( 1,122) $ 7 $ 4,982 Change in unrealized depreciation of investments ( 484) ( 9,971) - - - ( 10,455) Change in deferred policy acquisition costs adjustment and other (a) 30 1,377 - - - 1,407 Change in future policy benefits - 1,672 - - - 1,672 Change in foreign currency translation adjustments - - ( 69) - - ( 69) Change in net actuarial loss - - - 4 - 4 Change in prior service credit - - - ( 1) - ( 1) Change in deferred tax asset (liability) 95 1,380 ( 16) ( 10) - 1,449 Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - 3 3 Total other comprehensive loss ( 359) ( 5,542) ( 85) ( 7) 3 ( 5,990) Noncontrolling interests - ( 10) ( 4) - - ( 14) Balance, March 31, 2020, net of tax $ ( 359) $ 3,190 $ ( 2,706) $ ( 1,129) $ 10 $ ( 994) (a) Includes net unrealized gains and losses attributable to businesses held for sale at March 31, 2020. The following table presents the other comprehensive income (loss) reclassification adjustments for the three-month periods ended March 31, 2021 and 2020, respectively: |
Other comprehensive income (loss) reclassification adjustments | Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total March 31, 2021 Unrealized change arising during period $ 37 $ ( 8,761) $ 170 $ ( 11) $ ( 1) $ ( 8,566) Less: Reclassification adjustments included in net income ( 2) 391 - ( 12) - 377 Total other comprehensive income (loss), before income tax expense (benefit) 39 ( 9,152) 170 1 ( 1) ( 8,943) Less: Income tax expense (benefit) 6 ( 1,953) 45 4 - ( 1,898) Total other comprehensive income (loss), net of income tax expense (benefit) $ 33 $ ( 7,199) $ 125 $ ( 3) $ ( 1) $ ( 7,045) Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total March 31, 2020 Unrealized change arising during period $ ( 454) $ ( 6,708) $ ( 69) $ ( 7) $ 3 $ ( 7,235) Less: Reclassification adjustments included in net income - 214 - ( 10) - 204 Total other comprehensive income (loss), before income tax expense (benefit) ( 454) ( 6,922) ( 69) 3 3 ( 7,439) Less: Income tax expense (benefit) ( 95) ( 1,380) 16 10 - ( 1,449) Total other comprehensive income (loss), net of income tax expense (benefit) $ ( 359) $ ( 5,542) $ ( 85) $ ( 7) $ 3 $ ( 5,990) |
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 AOCI Affected Line Item in the Three Months Ended March 31, Condensed Consolidated (in millions) 2021 2020 Statements of Income Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken Investments $ ( 2) $ - Other realized capital gains Total ( 2) - Unrealized appreciation (depreciation) of all other investments Investments 391 214 Other realized capital gains Total 391 214 Change in retirement plan liabilities adjustment Prior-service credit ( 1) - * Actuarial losses ( 11) ( 10) * Total ( 12) ( 10) Total reclassifications for the period $ 377 $ 204 * These AOCI components are included in the computation of net periodic pension cost. For additional information see Note 14 to the Condensed Consolidated Financial Statements. |
Preferred Stock | |
Class of Stock [Line Items] | |
Dividends Paid | Dividends Paid Declaration Date Record Date Payment Date Per Preferred Share Per Depositary Share February 16, 2021 February 26, 2021 March 15, 2021 $ 365.625 $ 0.365625 February 12, 2020 February 28, 2020 March 16, 2020 $ 365.625 $ 0.365625 |
EARNINGS PER COMMON SHARE (EP_2
EARNINGS PER COMMON SHARE (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
EARNINGS PER COMMON SHARE (EPS) | |
Computation of basic and diluted EPS | Three Months Ended March 31, (dollars in millions, except per common share data) 2021 2020 Numerator for EPS: Income from continuing operations $ 3,930 $ 1,654 Less: Net income (loss) from continuing operations attributable to noncontrolling interests 54 ( 95) Less: Preferred stock dividends 7 7 Income attributable to AIG common shareholders from continuing operations 3,869 1,742 Income from discontinued operations, net of income tax expense - - Net income attributable to AIG common shareholders $ 3,869 $ 1,742 Denominator for EPS: Weighted average common shares outstanding - basic 868,105,069 874,213,630 Dilutive common shares 8,164,855 4,652,583 Weighted average common shares outstanding - diluted (a) 876,269,924 878,866,213 Income per common share attributable to AIG common shareholders: Basic: Income from continuing operations $ 4.45 $ 1.99 Income from discontinued operations $ - $ - Income attributable to AIG common shareholders $ 4.45 $ 1.99 Diluted: Income from continuing operations $ 4.41 $ 1.98 Income from discontinued operations $ - $ - Income attributable to AIG common shareholders $ 4.41 $ 1.98 (a) Dilutive common shares include 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, which expired in January 2021. The number of common shares excluded from diluted shares outstanding was 9.2 million and 67.2 million for the three-month periods ended March 31, 2021 and 2020, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive. |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of net periodic benefit cost | Pension U.S. Non-U.S. (in millions) Plans Plans Total Three Months Ended March 31, 2021 Components of net periodic benefit cost: Service cost $ 1 $ 5 $ 6 Interest cost 22 3 25 Expected return on assets ( 61) ( 6) ( 67) Amortization of prior service cost - 1 1 Amortization of net loss 9 2 11 Net periodic benefit cost (credit) $ ( 29) $ 5 $ ( 24) Three Months Ended March 31, 2020 Components of net periodic benefit cost: Service cost $ 1 $ 5 $ 6 Interest cost 34 3 37 Expected return on assets ( 60) ( 5) ( 65) Amortization of net loss 8 2 10 Net periodic benefit cost (credit) $ ( 17) $ 5 $ ( 12) |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ / shares in Units, $ in Millions | Jun. 02, 2020USD ($) | May 26, 2020USD ($) | Mar. 31, 2021USD ($)item$ / shares | Mar. 31, 2020USD ($) | Dec. 31, 2020$ / shares | Nov. 13, 2018 |
Basis of Presentation [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 2.50 | $ 2.5 | ||||
Net income (loss) on sale of divested businesses | $ 7 | $ (216) | ||||
Unrealized gains (losses) in earnings - net | 853 | 3,197 | ||||
Insurance reserves | 3,628 | 1,727 | ||||
Net cash provided by (used in) operating activities | 640 | (586) | ||||
Policyholder contract deposits | 5,716 | 5,761 | ||||
Policyholder contract withdrawals | 5,190 | 4,547 | ||||
Net cash provided by (used in) financing activities | (2,114) | 1,232 | ||||
Life and Retirement Retail Mutual Funds [Member] | ||||||
Basis of Presentation [Line Items] | ||||||
Assets under management | $ 7,600 | |||||
Number of funds managed | item | 18 | |||||
Life and Retirement Retail Mutual Funds [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||||||
Basis of Presentation [Line Items] | ||||||
Assets under management | $ 7,400 | |||||
Number of funds managed | item | 12 | |||||
Life and Retirement Retail Mutual Funds [Member] | Disposed of by Means Other than Sale | ||||||
Basis of Presentation [Line Items] | ||||||
Assets under management | $ 200 | |||||
Number of funds managed | item | 6 | |||||
Prior period reclassification adjustment | ||||||
Basis of Presentation [Line Items] | ||||||
Unrealized gains (losses) in earnings - net | (648) | |||||
Insurance reserves | 76 | |||||
Net cash provided by (used in) operating activities | (572) | |||||
Policyholder contract deposits | 782 | |||||
Policyholder contract withdrawals | (210) | |||||
Net cash provided by (used in) financing activities | 572 | |||||
American International Group, Inc. | Fortitude Holdings | ||||||
Basis of Presentation [Line Items] | ||||||
Percentage of common stock held after closing of transaction | 3.50% | |||||
Carlyle FRL | Fortitude Holdings | ||||||
Basis of Presentation [Line Items] | ||||||
Voting interest in subsidiary, percent | 51.60% | |||||
T&D | Fortitude Holdings | ||||||
Basis of Presentation [Line Items] | ||||||
Voting interest in subsidiary, percent | 25.00% | |||||
Fortitude Holdings | ||||||
Basis of Presentation [Line Items] | ||||||
Total consideration | $ 2,200 | |||||
Consideration in cash | 1,800 | |||||
Contingent consideration receivable | $ 95 | |||||
Contingent consideration receivable, maximum | 500 | |||||
Decrease to stockholders' equity related to disposal | 4,300 | |||||
After tax loss on disposal | (6,700) | |||||
AOCI adjustment related to release of shadow adjustments | 2,400 | |||||
Write off of prepaid insurance | (2,700) | |||||
Gain (loss) on disposal related to mark to market adjustments | (4,000) | |||||
Maximum borrowing capacity | 600 | |||||
Fortitude Holdings | General insurance subsidiaries | ||||||
Basis of Presentation [Line Items] | ||||||
Consideration contributed to subsidiaries | 700 | |||||
Fortitude Holdings | Life and retirement subsidiaries | ||||||
Basis of Presentation [Line Items] | ||||||
Consideration contributed to subsidiaries | 135 | |||||
Fortitude Holdings | Legacy life and retirement run-off lines | ||||||
Basis of Presentation [Line Items] | ||||||
Cession of reserves | 30,300 | |||||
Fortitude Holdings | Legacy general insurance run-off lines | ||||||
Basis of Presentation [Line Items] | ||||||
Cession of reserves | $ 4,000 | |||||
Fortitude Holdings | TC Group Cayman | ||||||
Basis of Presentation [Line Items] | ||||||
Voting interest in subsidiary, percent | 19.90% | 19.90% | ||||
Contingent consideration receivable | $ 115 | |||||
Contingent consideration received | $ 79.6 | |||||
Additional contingent consideration receivable | $ 19.9 | |||||
Fortitude Holdings | Carlyle FRL and T&D | ||||||
Basis of Presentation [Line Items] | ||||||
Purchase price adjustment | 383 | |||||
Blackboard U.S. Holdings, Inc | ||||||
Basis of Presentation [Line Items] | ||||||
Net income (loss) on sale of divested businesses | $ (210) | |||||
Minimum | ||||||
Basis of Presentation [Line Items] | ||||||
Number of countries in which the entity operates | item | 80 | |||||
Maximum | Fortitude Holdings | ||||||
Basis of Presentation [Line Items] | ||||||
Purchase price adjustment | $ 500 |
SEGMENT INFORMATION (Details -
SEGMENT INFORMATION (Details - Schedule of continuing operations by operating segment) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Total Revenues | $ 14,454 | $ 14,443 |
Adjusted Pre-tax Income (Loss) | 4,728 | 2,558 |
Total | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 10,762 | 11,127 |
Adjusted Pre-tax Income (Loss) | 1,256 | 180 |
General Insurance | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 6,638 | 6,667 |
Adjusted Pre-tax Income (Loss) | 845 | 501 |
General Insurance | Reportable Segments | North America | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 2,388 | 2,731 |
Adjusted Pre-tax Income (Loss) | (202) | (103) |
General Insurance | Reportable Segments | International | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 3,478 | 3,348 |
Adjusted Pre-tax Income (Loss) | 275 | 16 |
General Insurance | Reportable Segments | Net Investment Income | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 772 | 588 |
Adjusted Pre-tax Income (Loss) | 772 | 588 |
Life and Retirement | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 3,980 | 4,286 |
Adjusted Pre-tax Income (Loss) | 941 | 601 |
Life and Retirement | Reportable Segments | Individual Retirement | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 1,477 | 1,368 |
Adjusted Pre-tax Income (Loss) | 532 | 305 |
Life and Retirement | Reportable Segments | Group Retirement | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 806 | 694 |
Adjusted Pre-tax Income (Loss) | 307 | 143 |
Life and Retirement | Reportable Segments | Life Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 1,333 | 1,200 |
Adjusted Pre-tax Income (Loss) | (40) | 78 |
Life and Retirement | Reportable Segments | Institutional Markets | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 364 | 1,024 |
Adjusted Pre-tax Income (Loss) | 142 | 75 |
Other Operations | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 144 | 174 |
Adjusted Pre-tax Income (Loss) | (530) | (922) |
Other Operations | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 324 | 315 |
Adjusted Pre-tax Income (Loss) | (354) | (835) |
Other Operations | AIG Consolidation and Elimination | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | (180) | (141) |
Adjusted Pre-tax Income (Loss) | $ (176) | $ (87) |
SEGMENT INFORMATION (Details _2
SEGMENT INFORMATION (Details - Schedule of continuing operations by operating segment, reconciling items) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reconciling items to pre-tax income (loss): | ||
Gains (losses) on extinguishment of debt | $ 8 | $ (17) |
Net Investment Income | 3,657 | 2,508 |
Net realized capital gains (losses) on embedded derivatives | 3,250 | 3,519 |
Loss from divested businesses | 7 | (216) |
Net loss reserve discount charge | 32 | (56) |
Revenues | 14,454 | 14,443 |
Amortization of DAC | 1,304 | 1,862 |
Adjusted Pre-tax Income (Loss) | 4,728 | 2,558 |
Excluding Fortitude Re funds withheld assets | ||
Reconciling items to pre-tax income (loss): | ||
Net Investment Income | 3,171 | 2,508 |
Net realized capital gains (losses) on embedded derivatives | 695 | 3,519 |
Fortitude Re funds withheld assets | ||
Reconciling items to pre-tax income (loss): | ||
Net Investment Income | 486 | 0 |
Net realized capital gains (losses) on embedded derivatives | 173 | 0 |
Fortitude Re funds withheld embedded derivative | ||
Reconciling items to pre-tax income (loss): | ||
Net realized capital gains (losses) on embedded derivatives | 2,382 | 0 |
Total Revenues | ||
Reconciling items to pre-tax income (loss): | ||
Changes in fair values of securities used to hedge guaranteed living benefits | 18 | 14 |
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) | 0 | 0 |
Changes in fair value of equity securities | 22 | (191) |
Other income (expense) - net | (6) | 10 |
Gains (losses) on extinguishment of debt | 0 | 0 |
Net realized capital gains (losses) | 617 | 3,477 |
Loss from divested businesses | 0 | 0 |
Non-operating litigation reserves and settlements | 0 | 6 |
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 0 | 0 |
Net loss reserve discount charge | 0 | 0 |
Integration and transaction costs associated with acquiring or divesting businesses | 0 | 0 |
Restructuring and other costs | 0 | 0 |
Non-recurring costs related to regulatory or accounting changes | 0 | 0 |
Total Revenues | Excluding Fortitude Re funds withheld assets | ||
Reconciling items to pre-tax income (loss): | ||
Net Investment Income | 486 | 0 |
Total Revenues | Fortitude Re funds withheld assets | ||
Reconciling items to pre-tax income (loss): | ||
Net realized capital gains (losses) on embedded derivatives | 173 | 0 |
Total Revenues | Fortitude Re funds withheld embedded derivative | ||
Reconciling items to pre-tax income (loss): | ||
Net realized capital gains (losses) on embedded derivatives | 2,382 | 0 |
Adjusted Pre-tax Income (Loss) | ||
Reconciling items to pre-tax income (loss): | ||
Changes in fair values of securities used to hedge guaranteed living benefits | 22 | (7) |
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) | (203) | (538) |
Changes in fair value of equity securities | 22 | (191) |
Other income (expense) - net | 0 | 0 |
Gains (losses) on extinguishment of debt | 8 | (17) |
Net realized capital gains (losses) | 627 | 3,494 |
Loss from divested businesses | 7 | (216) |
Non-operating litigation reserves and settlements | 0 | 6 |
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 19 | 8 |
Net loss reserve discount charge | 32 | (56) |
Integration and transaction costs associated with acquiring or divesting businesses | (9) | (2) |
Restructuring and other costs | (74) | (90) |
Non-recurring costs related to regulatory or accounting changes | (20) | (13) |
Adjusted Pre-tax Income (Loss) | Excluding Fortitude Re funds withheld assets | ||
Reconciling items to pre-tax income (loss): | ||
Net Investment Income | 486 | 0 |
Adjusted Pre-tax Income (Loss) | Fortitude Re funds withheld assets | ||
Reconciling items to pre-tax income (loss): | ||
Net realized capital gains (losses) on embedded derivatives | 173 | 0 |
Adjusted Pre-tax Income (Loss) | Fortitude Re funds withheld embedded derivative | ||
Reconciling items to pre-tax income (loss): | ||
Net realized capital gains (losses) on embedded derivatives | $ 2,382 | $ 0 |
SEGMENT INFORMATION (Details _3
SEGMENT INFORMATION (Details - Narrative) | 3 Months Ended |
Mar. 31, 2021segment | |
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 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | [1] | $ 263,012 | $ 271,496 |
Other bond securities | [1] | 4,973 | 5,291 |
Equity securities | [1] | 1,160 | 1,056 |
Other invested assets | 8,713 | 8,422 | |
Derivative Assets, Fair Value, Gross | 5,287 | 6,805 | |
Derivative assets, Counterparty netting | (3,080) | (3,812) | |
Derivative assets, Cash collateral | (1,314) | (2,219) | |
Derivative assets | 893 | 774 | |
Short-term investments | 4,426 | 5,968 | |
Separate account assets, at fair value | 102,689 | 100,290 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 7,617 | 9,798 | |
Other policyholder funds | 3,564 | 3,548 | |
Derivative Liabilities, Fair Value, Gross | 5,912 | 5,822 | |
Derivative liabilities, Counterparty netting | (3,080) | (3,812) | |
Derivative liabilities, Cash collateral | (2,129) | (1,441) | |
Derivative liabilities | 703 | 569 | |
Fortitude Re funds withheld payable | 40,181 | 43,060 | |
Other liabilities | 703 | 570 | |
Long-term debt | 2,015 | 2,097 | |
Fair Value Using Net Asset Value Per Share or its equivalent | 6,715 | 6,493 | |
Level 1 | |||
Fair Value, Liabilities Measured on Recurring Basis | |||
Fortitude Re funds withheld payable | 0 | 0 | |
Level 2 | |||
Fair Value, Liabilities Measured on Recurring Basis | |||
Fortitude Re funds withheld payable | 0 | 0 | |
Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis | |||
Fortitude Re funds withheld payable | 36,694 | 37,018 | |
Recurring Basis | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 263,012 | 271,496 | |
Other bond securities | 4,973 | 5,291 | |
Equity securities | 1,160 | 1,056 | |
Other invested assets | 1,998 | 1,929 | |
Derivative assets, Counterparty netting | (3,080) | (3,812) | |
Derivative assets, Cash collateral | (1,314) | (2,219) | |
Derivative assets, Counterparty netting and cash collateral | (4,394) | (6,031) | |
Derivative assets | 893 | 774 | |
Short-term investments | 4,426 | 5,968 | |
Other assets | 113 | 113 | |
Separate account assets, at fair value | 102,689 | 100,290 | |
Fair value assets measured on recurring basis, total | 379,264 | 386,917 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 7,617 | 9,798 | |
Derivative liabilities, Counterparty netting | (3,080) | (3,812) | |
Derivative liabilities, Cash collateral | (2,129) | (1,441) | |
Derivative liabilities, Counterparty netting and cash collateral | (5,209) | (5,253) | |
Derivative liabilities | 703 | 569 | |
Fortitude Re funds withheld payable | 3,487 | 6,042 | |
Other liabilities | 0 | 1 | |
Long-term debt | 2,015 | 2,097 | |
Fair value liabilities measured on recurring basis, total | 13,822 | 18,507 | |
Recurring Basis | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 3,624 | 4,637 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 4,904 | 4,436 | |
Recurring Basis | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 1,069 | 1,022 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 854 | 1,090 | |
Recurring Basis | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 580 | 1,130 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 85 | 223 | |
Recurring Basis | Credit 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 | 65 | 67 | |
Recurring Basis | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 13 | 14 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 4 | 6 | |
Recurring Basis | U.S. government and government sponsored entities | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 3,977 | 4,126 | |
Other bond securities | 1,751 | 1,845 | |
Recurring Basis | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 15,139 | 16,124 | |
Recurring Basis | Non-U.S. governments | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 15,187 | 15,345 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 164,884 | 169,298 | |
Other bond securities | 12 | 12 | |
Recurring Basis | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 30,108 | 31,465 | |
Other bond securities | 382 | 429 | |
Recurring Basis | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 15,149 | 16,133 | |
Other bond securities | 314 | 320 | |
Recurring Basis | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 18,568 | 19,005 | |
Other bond securities | 2,514 | 2,685 | |
Recurring Basis | Level 1 | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 147 | 101 | |
Other bond securities | 0 | 0 | |
Equity securities | 1,012 | 929 | |
Other invested assets | 0 | 0 | |
Derivative Assets, Fair Value, Gross | 4 | 9 | |
Short-term investments | 2,029 | 2,379 | |
Other assets | 0 | 0 | |
Separate account assets, at fair value | 98,876 | 96,560 | |
Fair value assets measured on recurring basis, total | 102,068 | 99,978 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 0 | 0 | |
Derivative Liabilities, Fair Value, Gross | 13 | 15 | |
Fortitude Re funds withheld payable | 0 | 0 | |
Other liabilities | 0 | 0 | |
Long-term debt | 0 | 0 | |
Fair value liabilities measured on recurring basis, total | 13 | 15 | |
Recurring Basis | Level 1 | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 2 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 0 | 1 | |
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 | 2 | 9 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 13 | 14 | |
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 | 32 | 73 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Recurring Basis | Level 1 | Non-U.S. governments | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 115 | 28 | |
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 | 236,223 | 244,506 | |
Other bond securities | 2,455 | 2,593 | |
Equity securities | 20 | 76 | |
Other invested assets | 101 | 102 | |
Derivative Assets, Fair Value, Gross | 5,031 | 6,580 | |
Short-term investments | 2,397 | 3,589 | |
Other assets | 0 | 0 | |
Separate account assets, at fair value | 3,813 | 3,730 | |
Fair value assets measured on recurring basis, total | 250,040 | 261,176 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 0 | 0 | |
Derivative Liabilities, Fair Value, Gross | 5,834 | 5,710 | |
Fortitude Re funds withheld payable | 0 | 0 | |
Other liabilities | 0 | 1 | |
Long-term debt | 2,015 | 2,097 | |
Fair value liabilities measured on recurring basis, total | 7,849 | 7,808 | |
Recurring Basis | Level 2 | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 3,622 | 4,637 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 4,904 | 4,435 | |
Recurring Basis | Level 2 | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 1,068 | 1,020 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 853 | 1,090 | |
Recurring Basis | Level 2 | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 341 | 923 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 57 | 162 | |
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 | 20 | 23 | |
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 | 3,945 | 4,053 | |
Other bond securities | 1,751 | 1,845 | |
Recurring Basis | Level 2 | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 13,243 | 14,019 | |
Recurring Basis | Level 2 | Non-U.S. governments | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 15,066 | 15,312 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 2 | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 162,314 | 166,949 | |
Other bond securities | 12 | 12 | |
Recurring Basis | Level 2 | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 18,644 | 19,771 | |
Other bond securities | 256 | 290 | |
Recurring Basis | Level 2 | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 14,045 | 15,211 | |
Other bond securities | 268 | 273 | |
Recurring Basis | Level 2 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 8,966 | 9,191 | |
Other bond securities | 168 | 173 | |
Recurring Basis | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 26,642 | 26,889 | |
Other bond securities | 2,518 | 2,698 | |
Equity securities | 128 | 51 | |
Other invested assets | 1,897 | 1,827 | |
Derivative Assets, Fair Value, Gross | 252 | 216 | |
Short-term investments | 0 | 0 | |
Other assets | 113 | 113 | |
Separate account assets, at fair value | 0 | 0 | |
Fair value assets measured on recurring basis, total | 31,550 | 31,794 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 7,617 | 9,798 | |
Derivative Liabilities, Fair Value, Gross | 65 | 97 | |
Fortitude Re funds withheld payable | 3,487 | 6,042 | |
Other liabilities | 0 | 0 | |
Long-term debt | 0 | 0 | |
Fair value liabilities measured on recurring basis, total | 11,169 | 15,937 | |
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 | 0 | |
Recurring Basis | Level 3 | Foreign exchange 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 | 1 | 0 | |
Recurring Basis | Level 3 | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 237 | 198 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 15 | 47 | |
Recurring Basis | Level 3 | Credit 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 | 45 | 44 | |
Recurring Basis | Level 3 | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 13 | 14 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 4 | 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 | 1,896 | 2,105 | |
Recurring Basis | Level 3 | Non-U.S. governments | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 6 | 5 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 3 | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 2,570 | 2,349 | |
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 | 11,464 | 11,694 | |
Other bond securities | 126 | 139 | |
Recurring Basis | Level 3 | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 1,104 | 922 | |
Other bond securities | 46 | 47 | |
Recurring Basis | Level 3 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 9,602 | 9,814 | |
Other bond securities | $ 2,346 | $ 2,512 | |
[1] | See Note 8 for details of balances associated with variable interest entities. |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | $ 31,578 | $ 30,958 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 338 | (105) |
Other Comprehensive Income (Loss), assets | (178) | (2,296) |
Purchases, Sales, Issuances and Settlements, Net, assets | (552) | (819) |
Gross Transfers In, assets | 779 | 1,932 |
Gross Transfers Out, assets | (667) | (597) |
Reclassification of Held for Sale, assets | 0 | (3) |
Fair Value End of Period, assets | 31,298 | 29,070 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 28 | (270) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | (175) | (2,100) |
Liabilities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | 15,721 | 6,808 |
Net realized and unrealized gains (losses) included in income, liabilities | (4,679) | 1,014 |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (165) | 113 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 40 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | 10,917 | 7,935 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 5,419 | (769) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Policyholder contract deposits | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | 9,798 | 6,910 |
Net realized and unrealized gains (losses) included in income, liabilities | (2,260) | 1,171 |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 79 | 72 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | 7,617 | 8,153 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 2,570 | (884) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Derivative liabilities, net | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | (119) | (102) |
Net realized and unrealized gains (losses) included in income, liabilities | (37) | (157) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (71) | 41 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 40 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | (187) | (218) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | (106) | 115 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Interest rate contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | 0 | 0 |
Net realized and unrealized gains (losses) included in income, liabilities | 0 | 0 |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 0 | 0 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Foreign exchange contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | (2) | (6) |
Net realized and unrealized gains (losses) included in income, liabilities | 1 | 3 |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 1 | 6 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | 0 | 3 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | (1) | 1 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Equity contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | (151) | (151) |
Net realized and unrealized gains (losses) included in income, liabilities | (26) | (26) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (85) | 34 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 40 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | (222) | (143) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | (118) | (14) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Credit contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | 42 | 62 |
Net realized and unrealized gains (losses) included in income, liabilities | 5 | (124) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (3) | (14) |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | 44 | (76) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | (3) | 118 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Other contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | (8) | (7) |
Net realized and unrealized gains (losses) included in income, liabilities | (17) | (10) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 16 | 15 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Reclassified to Held for Sale, liabilities | 0 | 0 |
Fair Value End of Year, liabilities | (9) | (2) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 16 | 10 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Fortitude Re funds withheld payable | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | 6,042 | |
Net realized and unrealized gains (losses) included in income, liabilities | (2,382) | |
Other Comprehensive Income (Loss), liabilities | 0 | |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (173) | |
Gross Transfers In, liabilities | 0 | |
Gross Transfers Out, liabilities | 0 | |
Reclassified to Held for Sale, liabilities | 0 | |
Fair Value End of Year, liabilities | 3,487 | |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 2,955 | |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | |
Bonds available for sale | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 26,889 | 25,931 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 194 | 94 |
Other Comprehensive Income (Loss), assets | (175) | (2,297) |
Purchases, Sales, Issuances and Settlements, Net, assets | (298) | 12 |
Gross Transfers In, assets | 698 | 1,781 |
Gross Transfers Out, assets | (666) | (597) |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 26,642 | 24,924 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | (175) | (2,100) |
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 Period, assets | 2,105 | 2,121 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 3 | 5 |
Other Comprehensive Income (Loss), assets | (159) | (55) |
Purchases, Sales, Issuances and Settlements, Net, assets | (53) | 137 |
Gross Transfers In, assets | 0 | 27 |
Gross Transfers Out, assets | 0 | (133) |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 1,896 | 2,102 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | (10) | (51) |
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 Period, assets | 5 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 0 | 0 |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | 0 | 0 |
Gross Transfers In, assets | 1 | 6 |
Gross Transfers Out, assets | 0 | 0 |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 6 | 6 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 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 Period, assets | 2,349 | 1,663 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | (1) | (67) |
Other Comprehensive Income (Loss), assets | (10) | (81) |
Purchases, Sales, Issuances and Settlements, Net, assets | 177 | 7 |
Gross Transfers In, assets | 187 | 103 |
Gross Transfers Out, assets | (132) | (410) |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 2,570 | 1,215 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | (159) | (29) |
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 Period, assets | 11,694 | 13,408 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 167 | 132 |
Other Comprehensive Income (Loss), assets | 64 | (1,623) |
Purchases, Sales, Issuances and Settlements, Net, assets | (431) | (223) |
Gross Transfers In, assets | 0 | 19 |
Gross Transfers Out, assets | (30) | (26) |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 11,464 | 11,687 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | (14) | (1,505) |
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 Period, assets | 922 | 1,053 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 9 | 7 |
Other Comprehensive Income (Loss), assets | (56) | 19 |
Purchases, Sales, Issuances and Settlements, Net, assets | 173 | 44 |
Gross Transfers In, assets | 56 | 23 |
Gross Transfers Out, assets | 0 | 0 |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 1,104 | 1,146 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | (56) | 21 |
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 Period, assets | 9,814 | 7,686 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 16 | 17 |
Other Comprehensive Income (Loss), assets | (14) | (557) |
Purchases, Sales, Issuances and Settlements, Net, assets | (164) | 47 |
Gross Transfers In, assets | 454 | 1,603 |
Gross Transfers Out, assets | (504) | (28) |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 9,602 | 8,768 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 64 | (536) |
Other bond securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 2,698 | 3,738 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | (9) | (194) |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | (177) | (975) |
Gross Transfers In, assets | 6 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 2,518 | 2,569 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | (98) | (284) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 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 Period, assets | 139 | 143 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 3 | (14) |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | (16) | 20 |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 126 | 149 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | (98) | (14) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 0 | 0 |
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 Period, assets | 47 | 50 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | (1) | (7) |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | (6) | (1) |
Gross Transfers In, assets | 6 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 46 | 42 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | (2) | (8) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 0 | 0 |
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 Period, assets | 2,512 | 3,545 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | (11) | (173) |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | (155) | (994) |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 2,346 | 2,378 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 2 | (262) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 0 | 0 |
Equity securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 51 | 8 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 11 | (1) |
Other Comprehensive Income (Loss), assets | 3 | 1 |
Purchases, Sales, Issuances and Settlements, Net, assets | (11) | 10 |
Gross Transfers In, assets | 75 | 1 |
Gross Transfers Out, assets | (1) | 0 |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 128 | 19 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 3 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 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 Period, assets | 1,827 | 1,192 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 142 | (4) |
Other Comprehensive Income (Loss), assets | (6) | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | (66) | 129 |
Gross Transfers In, assets | 0 | 150 |
Gross Transfers Out, assets | 0 | 0 |
Reclassification of Held for Sale, assets | 0 | 0 |
Fair Value End of Period, assets | 1,897 | 1,467 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 123 | 14 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 0 | 0 |
Other assets | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 113 | 89 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 0 | 0 |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | 0 | 5 |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Reclassification of Held for Sale, assets | 0 | (3) |
Fair Value End of Period, assets | 113 | 91 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_3
FAIR VALUE MEASUREMENTS (Details - Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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 | $ 338 | $ (105) |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | (2,260) | 1,171 |
Policyholder contract deposits | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, 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 (losses) included in income, liabilities | (2,260) | 1,171 |
Policyholder contract deposits | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | 0 | 0 |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | (37) | (157) |
Derivative liabilities, net | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, 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 (losses) included in income, liabilities | (23) | (143) |
Derivative liabilities, net | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | (14) | (14) |
Fortitude Re funds withheld payable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | (2,382) | |
Fortitude Re funds withheld payable | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | 0 | |
Fortitude Re funds withheld payable | Net realized capital gains (losses) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | (2,382) | |
Fortitude Re funds withheld payable | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | 0 | |
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 | 194 | 94 |
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 | 185 | 198 |
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 | 9 | (104) |
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 | 0 |
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 | (9) | (194) |
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 | (31) | (462) |
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 | 22 | 268 |
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 | 0 |
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 | 11 | (1) |
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 | 11 | 0 |
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 | (1) |
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 | 142 | (4) |
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 | 142 | (4) |
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 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_4
FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issuances and settlements) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, Sales, Issuances and Settlements, Net, assets | $ (552,000,000) | $ (819,000,000) |
Issuances | 0 | 0 |
Transfers into Level 3 at end of reporting period, net gains (losses) not included in realized and unrealized gains and losses related to Level 3 for the period | 19,000,000 | (156,000,000) |
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. | (4,000,000) | (55,000,000) |
Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (52,000,000) | (15,000,000) |
Sales, liabilities | 192,000,000 | 230,000,000 |
Issuances and Settlements, liabilities | (305,000,000) | (102,000,000) |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (165,000,000) | 113,000,000 |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 0 | 0 |
Sales, liabilities | 191,000,000 | 222,000,000 |
Issuances and Settlements, liabilities | (112,000,000) | (150,000,000) |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 79,000,000 | 72,000,000 |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (52,000,000) | (15,000,000) |
Sales, liabilities | 1,000,000 | 8,000,000 |
Issuances and Settlements, liabilities | (20,000,000) | 48,000,000 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (71,000,000) | 41,000,000 |
Fortitude Re funds withheld payable | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 0 | |
Sales, liabilities | 0 | |
Issuances and Settlements, liabilities | (173,000,000) | |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (173,000,000) | |
Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1,680,000,000 | 1,115,000,000 |
Sales, assets | (115,000,000) | (610,000,000) |
Issuances and Settlements, assets | (2,117,000,000) | (1,324,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (552,000,000) | (819,000,000) |
Bonds available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1,482,000,000 | 871,000,000 |
Sales, assets | (70,000,000) | (31,000,000) |
Issuances and Settlements, assets | (1,710,000,000) | (828,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (298,000,000) | 12,000,000 |
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 | 8,000,000 | 145,000,000 |
Sales, assets | (20,000,000) | (2,000,000) |
Issuances and Settlements, assets | (41,000,000) | (6,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (53,000,000) | 137,000,000 |
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 | 0 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | 0 | 0 |
Bonds available for sale | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 741,000,000 | 112,000,000 |
Sales, assets | (1,000,000) | (5,000,000) |
Issuances and Settlements, assets | (563,000,000) | (100,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 177,000,000 | 7,000,000 |
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 | 164,000,000 | 336,000,000 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | (595,000,000) | (559,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (431,000,000) | (223,000,000) |
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 | 193,000,000 | 53,000,000 |
Sales, assets | 0 | (2,000,000) |
Issuances and Settlements, assets | (20,000,000) | (7,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 173,000,000 | 44,000,000 |
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 | 376,000,000 | 225,000,000 |
Sales, assets | (49,000,000) | (22,000,000) |
Issuances and Settlements, assets | (491,000,000) | (156,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (164,000,000) | 47,000,000 |
Other bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 60,000,000 |
Sales, assets | (45,000,000) | (579,000,000) |
Issuances and Settlements, assets | (132,000,000) | (456,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (177,000,000) | (975,000,000) |
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 | 25,000,000 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | (16,000,000) | (5,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (16,000,000) | 20,000,000 |
Other bond securities | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 0 |
Sales, assets | (6,000,000) | 0 |
Issuances and Settlements, assets | 0 | (1,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (6,000,000) | (1,000,000) |
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 | 35,000,000 |
Sales, assets | (39,000,000) | (579,000,000) |
Issuances and Settlements, assets | (116,000,000) | (450,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (155,000,000) | (994,000,000) |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 10,000,000 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | (11,000,000) | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | (11,000,000) | 10,000,000 |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 198,000,000 | 174,000,000 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | (264,000,000) | (45,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (66,000,000) | 129,000,000 |
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 | 0 | 5,000,000 |
Purchases, Sales, Issuances and Settlements, Net, assets | $ 0 | $ 5,000,000 |
FAIR VALUE MEASUREMENTS (Deta_5
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Assets) $ in Millions | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Obligations of states, municipalities and political subdivisions | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0322 | 0.0282 |
Obligations of states, municipalities and political subdivisions | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0382 | 0.0339 |
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 | 0.0352 | 0.0311 |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,504 | $ 1,670 |
Corporate debt | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0229 | 0.0213 |
Corporate debt | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0733 | 0.0782 |
Corporate debt | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0481 | 0.0497 |
Corporate debt | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,682 | $ 1,591 |
Residential mortgage-backed securities | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0173 | 0.0169 |
Residential mortgage-backed securities | Minimum | Measurement Input Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0375 | 0.0390 |
Residential mortgage-backed securities | Minimum | Measurement Input Loss Severity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.2890 | 0.3008 |
Residential mortgage-backed securities | Minimum | Measurement Input Constant Default Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0119 | 0.0145 |
Residential mortgage-backed securities | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0413 | 0.0425 |
Residential mortgage-backed securities | Maximum | Measurement Input Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.1476 | 0.1199 |
Residential mortgage-backed securities | Maximum | Measurement Input Loss Severity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.7598 | 0.7849 |
Residential mortgage-backed securities | Maximum | Measurement Input Constant Default Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0762 | 0.0619 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0293 | 0.0297 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0926 | 0.0794 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Loss Severity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.5244 | 0.5429 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Constant Default Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0441 | 0.0382 |
Residential mortgage-backed securities | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 10,933 | $ 11,297 |
Certain CDO/ABS | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0195 | 0.0193 |
Certain CDO/ABS | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0482 | 0.0485 |
Certain CDO/ABS | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0338 | 0.0339 |
Certain CDO/ABS | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 8,361 | $ 8,324 |
Commercial mortgage backed securities | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0144 | 0.0092 |
Commercial mortgage backed securities | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0630 | 0.0589 |
Commercial mortgage backed securities | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0383 | 0.0340 |
Commercial mortgage backed securities | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 556 | $ 541 |
FAIR VALUE MEASUREMENTS (Deta_6
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) $ in Millions | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input Equity Volatility [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0635 | 0.0645 |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0016 | 0.0016 |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input Dynamic Lapse Multiplier [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.5000 | 0.5000 |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input Mortality Multiplier [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.3800 | 0.3800 |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input Utilization Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.9000 | 0.9000 |
Variable annuity guaranteed minimum withdrawal benefits | 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 |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0010 | 0.0006 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input Equity Volatility [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.5015 | 0.5085 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.1260 | 0.1260 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input Dynamic Lapse Multiplier [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1.4300 | 1.4300 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input Mortality Multiplier [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1.4700 | 1.4700 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input Utilization Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1 | 1 |
Variable annuity guaranteed minimum withdrawal benefits | 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 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0138 | 0.0148 |
Variable annuity guaranteed minimum withdrawal benefits | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 1,884 | $ 3,572 |
Index annuities including certain GMWB | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability | $ 694 | $ 726 |
Index annuities including certain GMWB | Minimum | Measurement Input Mortality Multiplier [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.2400 | 0.2400 |
Index annuities including certain GMWB | Minimum | Measurement Input Utilization Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.8000 | 0.8000 |
Index annuities including certain GMWB | Minimum | Measurement Input Lapse Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0038 | 0.0038 |
Index annuities including certain GMWB | Minimum | Measurement Input Options Budget [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0 | 0 |
Index annuities including certain GMWB | Minimum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0010 | 0.0006 |
Index annuities including certain GMWB | Maximum | Measurement Input Mortality Multiplier [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1.8000 | 1.8000 |
Index annuities including certain GMWB | Maximum | Measurement Input Utilization Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1 | 1 |
Index annuities including certain GMWB | Maximum | Measurement Input Lapse Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.5000 | 0.5000 |
Index annuities including certain GMWB | Maximum | Measurement Input Options Budget [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0400 | 0.0400 |
Index annuities including certain GMWB | Maximum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0138 | 0.0148 |
Index annuities including certain GMWB | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 5,076 | $ 5,538 |
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 | 0.0010 | 0.0006 |
Indexed Life | Maximum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.3797 | 0.3797 |
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 | 0.0138 | 0.0148 |
Indexed Life | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Fair value | $ 614 | $ 649 |
FAIR VALUE MEASUREMENTS (Deta_7
FAIR VALUE MEASUREMENTS (Details - Investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $ 6,715 | $ 6,493 |
Unfunded Commitments | 3,232 | 3,152 |
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 | 4,998 | 4,613 |
Unfunded Commitments | $ 3,231 | 3,151 |
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 | $ 1,950 | 1,752 |
Unfunded Commitments | 1,869 | 1,960 |
Real assets | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 927 | 908 |
Unfunded Commitments | 540 | 445 |
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 | 213 | 167 |
Unfunded Commitments | 201 | 171 |
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 | 782 | 703 |
Unfunded Commitments | 59 | 55 |
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 | 393 | 400 |
Unfunded Commitments | 184 | 155 |
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 | 733 | 683 |
Unfunded Commitments | 378 | 365 |
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 | 1,717 | 1,880 |
Unfunded Commitments | 1 | 1 |
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 | 429 | 411 |
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 | 325 | 361 |
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 | 653 | 807 |
Unfunded Commitments | 0 | 0 |
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 | 310 | 301 |
Unfunded Commitments | $ 1 | $ 1 |
FAIR VALUE MEASUREMENTS (Deta_8
FAIR VALUE MEASUREMENTS (Details - Gains or losses recorded related to the eligible instruments for which we elected the fair value option) - Fair Value Option - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value option gain (loss) | $ 389 | $ (402) |
Bonds | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value option gain (loss) | (99) | (60) |
Alternative investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value option gain (loss) | 417 | (139) |
Long-term debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value option gain (loss) | $ 71 | $ (203) |
FAIR VALUE MEASUREMENTS (Deta_9
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 | Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | $ 2,015 | $ 2,097 | |
Long-term debt, Outstanding Principal Amount | [1] | 26,432 | 28,103 |
Fair Value Option | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | 2,015 | 2,097 | |
Long-term debt, Outstanding Principal Amount | 1,452 | 1,479 | |
Long-term debt, Difference | $ 563 | $ 618 | |
[1] | See Note 8 for details of balances associated with variable interest entities. |
FAIR VALUE MEASUREMENTS (Det_10
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 | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | $ 89 | $ 404 | |
Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 89 | 376 | |
Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 28 | |
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 | 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 | 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 | 89 | 404 | |
Level 3 | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 89 | 376 | |
Level 3 | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | $ 28 | |
Fair value on a non-recurring basis | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | 6 | $ 23 | |
Fair value on a non-recurring basis | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | 6 | 11 | |
Fair value on a non-recurring basis | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | $ 0 | $ 12 |
FAIR VALUE MEASUREMENTS (Det_11
FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |||
Assets: | ||||||
Mortgage and other loans receivable | [1] | $ 45,468 | $ 45,562 | |||
Short-term investments | [1] | 14,454 | 18,203 | |||
Cash | 2,796 | [1] | 2,827 | [1] | $ 2,738 | |
Other assets | [1] | 13,223 | 13,122 | |||
Liabilities: | ||||||
Fortitude Re funds withheld payable | 40,181 | 43,060 | ||||
Other liabilities | [1] | 30,454 | 27,122 | |||
Long-term debt | [1] | 26,432 | 28,103 | |||
Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt | [1] | 9,216 | 9,431 | |||
Carrying Value | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 45,468 | 45,562 | ||||
Other invested assets | 836 | 843 | ||||
Short-term investments | 10,028 | 12,235 | ||||
Cash | 2,796 | 2,827 | ||||
Other assets | 238 | 223 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 130,953 | 130,435 | ||||
Fortitude Re funds withheld payable | 36,694 | 37,018 | ||||
Other liabilities | 3,683 | 3,695 | ||||
Separate account liabilities - investment contracts | 97,926 | 95,610 | ||||
Carrying Value | American International Group, Inc. | ||||||
Liabilities: | ||||||
Long-term debt | 24,417 | 26,006 | ||||
Carrying Value | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt | 9,216 | 9,431 | ||||
Total Fair Value | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 47,726 | 48,636 | ||||
Other invested assets | 836 | 843 | ||||
Short-term investments | 10,028 | 12,235 | ||||
Cash | 2,796 | 2,827 | ||||
Other assets | 238 | 223 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 142,857 | 144,571 | ||||
Fortitude Re funds withheld payable | 36,694 | 37,018 | ||||
Other liabilities | 3,683 | 3,695 | ||||
Separate account liabilities - investment contracts | 97,926 | 95,610 | ||||
Total Fair Value | American International Group, Inc. | ||||||
Liabilities: | ||||||
Long-term debt | 27,372 | 30,675 | ||||
Total Fair Value | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt | 9,397 | 9,711 | ||||
Level 1 | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 0 | 0 | ||||
Other invested assets | 0 | 0 | ||||
Short-term investments | 0 | 0 | ||||
Cash | 2,796 | 2,827 | ||||
Other assets | 223 | 209 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 0 | 0 | ||||
Fortitude Re funds withheld payable | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Separate account liabilities - investment contracts | 0 | 0 | ||||
Level 1 | American International Group, Inc. | ||||||
Liabilities: | ||||||
Long-term debt | 0 | 0 | ||||
Level 1 | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt | 0 | 0 | ||||
Level 2 | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 91 | 95 | ||||
Other invested assets | 830 | 837 | ||||
Short-term investments | 10,028 | 12,235 | ||||
Cash | 0 | 0 | ||||
Other assets | 15 | 14 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 202 | 214 | ||||
Fortitude Re funds withheld payable | 0 | 0 | ||||
Other liabilities | 3,683 | 3,695 | ||||
Separate account liabilities - investment contracts | 97,926 | 95,610 | ||||
Level 2 | American International Group, Inc. | ||||||
Liabilities: | ||||||
Long-term debt | 27,015 | 30,310 | ||||
Level 2 | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt | 1,917 | 1,746 | ||||
Level 3 | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 47,635 | 48,541 | ||||
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 | 142,655 | 144,357 | ||||
Fortitude Re funds withheld payable | 36,694 | 37,018 | ||||
Other liabilities | 0 | 0 | ||||
Separate account liabilities - investment contracts | 0 | 0 | ||||
Level 3 | American International Group, Inc. | ||||||
Liabilities: | ||||||
Long-term debt | 357 | 365 | ||||
Level 3 | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt | $ 7,480 | $ 7,965 | ||||
[1] | See Note 8 for details of balances associated with variable interest entities. |
INVESTMENTS (Details - Amortize
INVESTMENTS (Details - Amortized cost or cost and fair value of available for sale securities) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | $ 247,438 | $ 244,337 | |||
Available for sale securities, Allowance for Credit Losses | (122) | (186) | $ (211) | $ (7) | |
Available for sale securities, Fair Value | [1] | 263,012 | 271,496 | ||
Bonds available for sale | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 247,438 | 244,337 | |||
Available for sale securities, Allowance for Credit Losses | (122) | (186) | |||
Available for sale securities, Gross Unrealized Gains | 18,499 | 28,253 | |||
Available for sale securities, Gross Unrealized Losses | (2,803) | (908) | |||
Available for sale securities, Fair Value | 263,012 | 271,496 | |||
Other details of available for sale securities | |||||
Available for sale securities not rated or rated below investment grade | 27,900 | 28,200 | |||
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 or Cost, Net of Allowance | 3,810 | 3,640 | |||
Available for sale securities, Allowance for Credit Losses | 0 | 0 | |||
Available for sale securities, Gross Unrealized Gains | 216 | 503 | |||
Available for sale securities, Gross Unrealized Losses | (49) | (17) | |||
Available for sale securities, Fair Value | 3,977 | 4,126 | |||
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 or Cost, Net of Allowance | 13,617 | 13,915 | |||
Available for sale securities, Allowance for Credit Losses | 0 | 0 | |||
Available for sale securities, Gross Unrealized Gains | 1,570 | 2,216 | |||
Available for sale securities, Gross Unrealized Losses | (48) | (7) | |||
Available for sale securities, Fair Value | 15,139 | 16,124 | |||
Bonds available for sale | Non-U.S. governments | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 14,728 | 14,231 | |||
Available for sale securities, Allowance for Credit Losses | (4) | (4) | |||
Available for sale securities, Gross Unrealized Gains | 707 | 1,181 | |||
Available for sale securities, Gross Unrealized Losses | (244) | (63) | |||
Available for sale securities, Fair Value | 15,187 | 15,345 | |||
Bonds available for sale | Corporate debt | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 155,051 | 150,111 | |||
Available for sale securities, Allowance for Credit Losses | (103) | (164) | |||
Available for sale securities, Gross Unrealized Gains | 12,143 | 19,905 | |||
Available for sale securities, Gross Unrealized Losses | (2,207) | (554) | |||
Available for sale securities, Fair Value | 164,884 | 169,298 | |||
Bonds available for sale | Mortgage-backed, asset-backed and collateralized | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 60,232 | 62,440 | |||
Available for sale securities, Allowance for Credit Losses | (15) | (18) | |||
Available for sale securities, Gross Unrealized Gains | 3,863 | 4,448 | |||
Available for sale securities, Gross Unrealized Losses | (255) | (267) | |||
Available for sale securities, Fair Value | 63,825 | 66,603 | |||
Bonds available for sale | Residential mortgage-backed securities (RMBS) | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 27,417 | 28,551 | |||
Available for sale securities, Allowance for Credit Losses | (14) | (16) | |||
Available for sale securities, Gross Unrealized Gains | 2,799 | 3,000 | |||
Available for sale securities, Gross Unrealized Losses | (94) | (70) | |||
Available for sale securities, Fair Value | 30,108 | 31,465 | |||
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 14,556 | 15,182 | |||
Available for sale securities, Allowance for Credit Losses | (1) | (1) | |||
Available for sale securities, Gross Unrealized Gains | 687 | 1,023 | |||
Available for sale securities, Gross Unrealized Losses | (93) | (71) | |||
Available for sale securities, Fair Value | 15,149 | 16,133 | |||
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 or Cost, Net of Allowance | 18,259 | 18,707 | |||
Available for sale securities, Allowance for Credit Losses | 0 | (1) | |||
Available for sale securities, Gross Unrealized Gains | 377 | 425 | |||
Available for sale securities, Gross Unrealized Losses | (68) | (126) | |||
Available for sale securities, Fair Value | $ 18,568 | $ 19,005 | |||
[1] | See Note 8 for details of balances associated with variable interest entities. |
INVESTMENTS (Details - Securiti
INVESTMENTS (Details - Securities available for sale in a loss position) - Bonds available for sale $ in Millions | Mar. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | $ 52,875 | $ 24,504 |
Gross Unrealized Losses, Less than 12 Months | 2,327 | 576 |
Fair Value, 12 Months or More | 8,022 | 5,314 |
Gross Unrealized Losses, 12 Months or More | 381 | 192 |
Fair Value, Total | 60,897 | 29,818 |
Gross Unrealized Losses, Total | $ 2,708 | $ 768 |
Number of securities in an unrealized loss position | security | 10,610 | 5,105 |
Number of individual securities in continuous unrealized loss position for longer than twelve months | security | 1,617 | 949 |
U.S. government and government sponsored entities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | $ 1,111 | $ 649 |
Gross Unrealized Losses, Less than 12 Months | 38 | 17 |
Fair Value, 12 Months or More | 28 | 0 |
Gross Unrealized Losses, 12 Months or More | 11 | 0 |
Fair Value, Total | 1,139 | 649 |
Gross Unrealized Losses, Total | 49 | 17 |
Obligations of states, municipalities and political subdivisions | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 1,107 | 267 |
Gross Unrealized Losses, Less than 12 Months | 43 | 4 |
Fair Value, 12 Months or More | 102 | 78 |
Gross Unrealized Losses, 12 Months or More | 5 | 3 |
Fair Value, Total | 1,209 | 345 |
Gross Unrealized Losses, Total | 48 | 7 |
Non-U.S. governments | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 4,091 | 1,287 |
Gross Unrealized Losses, Less than 12 Months | 192 | 28 |
Fair Value, 12 Months or More | 307 | 262 |
Gross Unrealized Losses, 12 Months or More | 46 | 33 |
Fair Value, Total | 4,398 | 1,549 |
Gross Unrealized Losses, Total | 238 | 61 |
Corporate debt | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 34,646 | 11,715 |
Gross Unrealized Losses, Less than 12 Months | 1,874 | 348 |
Fair Value, 12 Months or More | 5,054 | 1,283 |
Gross Unrealized Losses, 12 Months or More | 252 | 81 |
Fair Value, Total | 39,700 | 12,998 |
Gross Unrealized Losses, Total | 2,126 | 429 |
Residential mortgage-backed securities (RMBS) | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 4,772 | 3,486 |
Gross Unrealized Losses, Less than 12 Months | 71 | 40 |
Fair Value, 12 Months or More | 457 | 282 |
Gross Unrealized Losses, 12 Months or More | 16 | 18 |
Fair Value, Total | 5,229 | 3,768 |
Gross Unrealized Losses, Total | 87 | 58 |
Commercial mortgage-backed securities (CMBS) | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 2,240 | 1,644 |
Gross Unrealized Losses, Less than 12 Months | 64 | 58 |
Fair Value, 12 Months or More | 543 | 346 |
Gross Unrealized Losses, 12 Months or More | 28 | 12 |
Fair Value, Total | 2,783 | 1,990 |
Gross Unrealized Losses, Total | 92 | 70 |
Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 4,908 | 5,456 |
Gross Unrealized Losses, Less than 12 Months | 45 | 81 |
Fair Value, 12 Months or More | 1,531 | 3,063 |
Gross Unrealized Losses, 12 Months or More | 23 | 45 |
Fair Value, Total | 6,439 | 8,519 |
Gross Unrealized Losses, Total | $ 68 | $ 126 |
INVESTMENTS (Details - Amorti_2
INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed Maturity Securities Available for Sale, Fair Value, Total | [1] | $ 263,012 | $ 271,496 |
Fixed maturity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Due in one year or less, Amortized Cost Net of Allowance | 9,296 | ||
Due after one year through five years, Amortized Cost Net of Allowance | 43,463 | ||
Due after five years through ten years, Amortized Cost Net of Allowance | 43,447 | ||
Due after ten years, Amortized Cost Net of Allowance | 90,893 | ||
Mortgage-backed, asset-backed and collateralized, Amortized Cost Net of Allowance | 60,217 | ||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 247,316 | ||
Due in one year or less, Fair Value | 9,388 | ||
Due after one year through five years, Fair Value | 44,991 | ||
Due after five years through ten years, Fair Value | 46,215 | ||
Due after ten years, Fair Value | 98,593 | ||
Mortgage-backed, asset-backed and collateralized, Fair Value | 63,825 | ||
Fixed Maturity Securities Available for Sale, Fair Value, Total | $ 263,012 | $ 271,496 | |
[1] | See Note 8 for details of balances associated with variable interest entities. |
INVESTMENTS (Details - Gross re
INVESTMENTS (Details - Gross realized gains and gross realized losses from sales or maturities of available for sale securities) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Aggregate fair value of available for sale securities sold | $ 6,400 | $ 7,200 |
Net realized capital gains (losses) | 389 | 214 |
Fortitude | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Net realized capital gains (losses) | 295 | |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Realized Gains | 460 | 380 |
Gross Realized Losses | $ 71 | $ 166 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 6,133 | $ 6,347 |
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 | $ 4,973 | $ 5,291 |
Other Securities, Percent of Total | 81.00% | 83.00% |
Fixed maturity securities | U.S. government and government sponsored entities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 1,751 | $ 1,845 |
Other Securities, Percent of Total | 29.00% | 29.00% |
Fixed maturity securities | Corporate debt | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 12 | $ 12 |
Other Securities, Percent of Total | 0.00% | 0.00% |
Fixed maturity securities | Mortgage-backed, asset-backed and collateralized | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 3,210 | $ 3,434 |
Other Securities, Percent of Total | 52.00% | 54.00% |
Fixed maturity securities | Residential mortgage-backed securities (RMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 382 | $ 429 |
Other Securities, Percent of Total | 6.00% | 7.00% |
Fixed maturity securities | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 314 | $ 320 |
Other Securities, Percent of Total | 5.00% | 5.00% |
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 | $ 2,514 | $ 2,685 |
Other Securities, Percent of Total | 41.00% | 42.00% |
Equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 1,160 | $ 1,056 |
Other Securities, Percent of Total | 19.00% | 17.00% |
INVESTMENTS (Details - Carrying
INVESTMENTS (Details - Carrying amounts of other invested assets) - USD ($) $ in Millions | Jun. 02, 2020 | Mar. 31, 2021 | Dec. 31, 2027 | Dec. 31, 2020 | |
Investments [Line Items] | |||||
Other invested assets | [1] | $ 19,390 | $ 19,060 | ||
Fortitude | American International Group Inc [Member] | |||||
Investments [Line Items] | |||||
Percentage of common stock held after closing of transaction | 3.50% | ||||
Alternative investments | |||||
Investments [Line Items] | |||||
Other invested assets | 9,589 | 9,572 | |||
Investment real estate | |||||
Investments [Line Items] | |||||
Other invested assets | 8,172 | 7,930 | |||
Net of accumulated depreciation on investment in real estate | 775 | 756 | |||
All other investments | |||||
Investments [Line Items] | |||||
Other invested assets | 1,629 | 1,558 | |||
All other investments | Fortitude | |||||
Investments [Line Items] | |||||
Other invested assets | 100 | 100 | |||
Hedge Funds | |||||
Investments [Line Items] | |||||
Other invested assets | $ 2,000 | 2,300 | |||
Hedge Fund Fair Value Redemption, Additional Percentage | 65.00% | 35.00% | |||
Direct private equity | |||||
Investments [Line Items] | |||||
Other invested assets | $ 7,400 | 7,000 | |||
Affordable Housing Partnerships | |||||
Investments [Line Items] | |||||
Other invested assets | $ 202 | $ 257 | |||
[1] | See Note 8 for details of balances associated with variable interest entities. |
INVESTMENTS (Details - Componen
INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Investment Income [Line Items] | ||
Total investment income | $ 3,777 | $ 2,656 |
Investment expenses | 120 | 148 |
Net investment income | 3,657 | 2,508 |
Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 494 | |
Investment expenses | 8 | |
Net investment income | 486 | |
Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | 3,283 | |
Investment expenses | 112 | |
Net investment income | 3,171 | |
Fixed maturity securities, including short-term investments | ||
Net Investment Income [Line Items] | ||
Total investment income | 2,555 | 2,609 |
Fixed maturity securities, including short-term investments | Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 377 | |
Fixed maturity securities, including short-term investments | Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | 2,178 | |
Other fixed maturity securities | ||
Net Investment Income [Line Items] | ||
Total investment income | (102) | (60) |
Derivative Fair Value Hedge Included In Effectiveness Gain (Loss) | (81) | 169 |
Other fixed maturity securities | Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 0 | |
Other fixed maturity securities | Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | (102) | |
Equity securities | ||
Net Investment Income [Line Items] | ||
Total investment income | 22 | (191) |
Equity securities | Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 0 | |
Equity securities | Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | 22 | |
Interest on mortgage and other loans | ||
Net Investment Income [Line Items] | ||
Total investment income | 461 | 513 |
Interest on mortgage and other loans | Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 47 | |
Interest on mortgage and other loans | Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | 414 | |
Alternative investments | ||
Net Investment Income [Line Items] | ||
Total investment income | 641 | (59) |
Alternative investments | Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 69 | |
Alternative investments | Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | 572 | |
Real estate | ||
Net Investment Income [Line Items] | ||
Total investment income | 59 | 59 |
Real estate | Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 0 | |
Real estate | Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | 59 | |
Other investments | ||
Net Investment Income [Line Items] | ||
Total investment income | 141 | (215) |
Derivative Fair Value Hedge Included In Effectiveness Gain (Loss) | 83 | $ (202) |
Other investments | Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 1 | |
Other investments | Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | $ 140 |
INVESTMENTS (Details - Compon_2
INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Gain (Loss) on Investments [Line Items] | ||
Intent to sell | $ 0 | $ 0 |
Change in allowance for credit losses on fixed maturity securities | 53 | (198) |
Change in allowance for credit losses on loans | 36 | (38) |
Foreign exchange transactions | (55) | (254) |
Variable annuity embedded derivatives, net of related hedges | 89 | 2,192 |
All other derivatives and hedge accounting | 234 | 1,559 |
Other | 122 | 44 |
Total net realized capital gains (losses) | 3,250 | 3,519 |
Excluding Fortitude Re funds withheld assets | ||
Gain (Loss) on Investments [Line Items] | ||
Intent to sell | 0 | |
Change in allowance for credit losses on fixed maturity securities | 51 | |
Change in allowance for credit losses on loans | 41 | |
Foreign exchange transactions | (49) | |
Variable annuity embedded derivatives, net of related hedges | 89 | |
All other derivatives and hedge accounting | 351 | |
Other | 118 | |
Total net realized capital gains (losses) | 695 | |
Fortitude | ||
Gain (Loss) on Investments [Line Items] | ||
Intent to sell | 0 | |
Change in allowance for credit losses on fixed maturity securities | 2 | |
Change in allowance for credit losses on loans | (5) | |
Foreign exchange transactions | (6) | |
Variable annuity embedded derivatives, net of related hedges | 0 | |
All other derivatives and hedge accounting | (117) | |
Other | 4 | |
Total net realized capital gains (losses) | 2,555 | |
Fixed maturity securities | ||
Gain (Loss) on Investments [Line Items] | ||
Sales of securities | 389 | 214 |
Fixed maturity securities | Excluding Fortitude Re funds withheld assets | ||
Gain (Loss) on Investments [Line Items] | ||
Sales of securities | 94 | |
Fixed maturity securities | Fortitude | ||
Gain (Loss) on Investments [Line Items] | ||
Sales of securities | 295 | |
Excluding modified coinsurance and funds withheld embedded derivative | ||
Gain (Loss) on Investments [Line Items] | ||
Total net realized capital gains (losses) | 868 | 3,519 |
Excluding modified coinsurance and funds withheld embedded derivative | Excluding Fortitude Re funds withheld assets | ||
Gain (Loss) on Investments [Line Items] | ||
Total net realized capital gains (losses) | 695 | |
Excluding modified coinsurance and funds withheld embedded derivative | Fortitude | ||
Gain (Loss) on Investments [Line Items] | ||
Total net realized capital gains (losses) | 173 | |
Fortitude Re funds withheld embedded derivative | ||
Gain (Loss) on Investments [Line Items] | ||
Total net realized capital gains (losses) | 2,382 | $ 0 |
Fortitude Re funds withheld embedded derivative | Excluding Fortitude Re funds withheld assets | ||
Gain (Loss) on Investments [Line Items] | ||
Total net realized capital gains (losses) | 0 | |
Fortitude Re funds withheld embedded derivative | Fortitude | ||
Gain (Loss) on Investments [Line Items] | ||
Total net realized capital gains (losses) | $ 2,382 |
INVESTMENTS (Details - Schedule
INVESTMENTS (Details - Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Increase (decrease) in unrealized appreciation (depreciation) of investments | ||
Net gains recognized during the period on equity securities | $ 492 | $ (320) |
Less: Net gains (losses) recognized during the year on equity securities sold during the period | 3 | 14 |
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date | 489 | (334) |
Change in unrealized appreciation (depreciation) of investments | (11,649) | (10,455) |
Fixed maturity securities | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | ||
Change in unrealized appreciation (depreciation) of investments | (11,649) | (10,455) |
Equity securities | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | ||
Net gains recognized during the period on equity securities | 22 | (191) |
Less: Net gains (losses) recognized during the year on equity securities sold during the period | (21) | 12 |
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date | 43 | (203) |
Other invested assets | ||
Increase (decrease) in unrealized appreciation (depreciation) of investments | ||
Net gains recognized during the period on equity securities | 470 | (129) |
Less: Net gains (losses) recognized during the year on equity securities sold during the period | 24 | 2 |
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date | $ 446 | $ (131) |
INVESTMENTS (Details - Rollforw
INVESTMENTS (Details - Rollforward of changes in allowance for credit losses on available for sale fixed maturity securities by major investment category) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of year | $ 186 | $ 7 |
Securities for which allowance for credit losses were not previously recorded | 15 | 198 |
Purchases of available for sale debt securities accounted for as PCD assets | 0 | 6 |
Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets | 0 | 0 |
Securities sold during the period | (5) | 0 |
Intent to sell security or more like than not will be required to sell the security before recovery of its amortized cost basis | 0 | 0 |
Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intention to sell before recovery amortized cost basis | (68) | 0 |
Write-offs charged against the allowance | (6) | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Other | 0 | 0 |
Securities available for sale, balance, end of period | 122 | 211 |
Structured | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of year | 17 | 7 |
Securities for which allowance for credit losses were not previously recorded | 2 | 24 |
Purchases of available for sale debt securities accounted for as PCD assets | 0 | 6 |
Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets | 0 | 0 |
Securities sold during the period | (1) | 0 |
Intent to sell security or more like than not will be required to sell the security before recovery of its amortized cost basis | 0 | 0 |
Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intention to sell before recovery amortized cost basis | (4) | 0 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Other | 0 | 0 |
Securities available for sale, balance, end of period | 14 | 37 |
Non-structured | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of year | 169 | 0 |
Securities for which allowance for credit losses were not previously recorded | 13 | 174 |
Purchases of available for sale debt securities accounted for as PCD assets | 0 | 0 |
Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets | 0 | 0 |
Securities sold during the period | (4) | 0 |
Intent to sell security or more like than not will be required to sell the security before recovery of its amortized cost basis | 0 | 0 |
Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intention to sell before recovery amortized cost basis | (64) | 0 |
Write-offs charged against the allowance | (6) | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Other | 0 | 0 |
Securities available for sale, balance, end of period | $ 108 | $ 174 |
INVESTMENTS (Details - Schedu_2
INVESTMENTS (Details - Schedule of purchased credit impaired (PCI) securities) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost | $ 247,438 | $ 244,337 | |
Bonds available for sale | [1] | $ 263,012 | $ 271,496 |
[1] | See Note 8 for details of balances associated with variable interest entities. |
INVESTMENTS (Details - Pledged
INVESTMENTS (Details - Pledged investments) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Investments [Line Items] | ||
Fair value of securities collateral pledged | $ 3,407 | $ 5,359 |
Securities Lending Agreements, Fair Value of Collateral | 3,304 | 3,380 |
Short-term investments held in escrow | 516 | 494 |
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements | 11,000 | 11,200 |
Overnight and continuous | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Up to 30 Days | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 939 | 982 |
31 to 90 Days | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 2,041 | 2,398 |
91 to 364 Days | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 324 | 0 |
365 Days or Greater | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
FHLBs | ||
Investments [Line Items] | ||
Fair value of fixed maturities securities available for sale | 6,000 | 5,700 |
Amount owned by subsidiaries | 209 | 191 |
Residential loans pledged as collateral | 1,100 | 1,200 |
Secured financing | ||
Investments [Line Items] | ||
Amounts Borrowed Under Repurchase and Securities Lending Agreements | 3,700 | 3,700 |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 248 | 256 |
Amounts Loaned under Reverse Repurchase Agreements | 3,400 | 5,400 |
Secured financing | Fixed Maturities [Member] | ||
Investments [Line Items] | ||
Fair value of fixed maturities securities available for sale | 3,552 | 3,636 |
Secured financing | Overnight and continuous | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 162 | 159 |
Secured financing | Up to 30 Days | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 86 | 97 |
Secured financing | 31 to 90 Days | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | 91 to 364 Days | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Secured financing | 365 Days or Greater | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, 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 | 104 | 103 |
Secured financing | Bonds available for sale | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 67 | 63 |
Securities Lending Agreements, Fair Value of Collateral | 117 | 0 |
Secured financing | Bonds available for sale | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 181 | 193 |
Securities Lending Agreements, Fair Value of Collateral | 3,083 | 3,277 |
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 | 67 | 63 |
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 | 95 | 96 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 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 | 104 | 0 |
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 | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
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 | 86 | 97 |
Securities Lending Agreements, Fair Value of Collateral | 835 | 982 |
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 | 0 | 103 |
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 | 32 | 0 |
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 | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 2,009 | 2,295 |
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 | 85 | 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 | 239 | 0 |
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 |
GIAs | ||
Investments [Line Items] | ||
Fair value of other bond securities | $ 1,500 | $ 1,500 |
LENDING ACTIVITIES (Details - C
LENDING ACTIVITIES (Details - Composition of mortgages and other loans receivable) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | $ 46,255 | $ 46,376 | |||
Allowance for credit losses | (787) | (814) | $ (787) | $ (438) | |
Mortgage and other loans receivable, net | [1] | 45,468 | 45,562 | ||
Commercial mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | 36,418 | 36,424 | |||
Allowance for credit losses | (662) | (685) | (689) | $ (336) | |
Loans on nonacrrual status | 356 | 238 | |||
Accrued interest receivable | 134 | 129 | |||
Off-balance-sheet commitments | $ 70 | $ 79 | $ 58 | ||
Commercial mortgages | Geographic Concentration Risk | Total Assets | California | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of mortgage loans in geographic area | 10.00% | 10.00% | |||
Commercial mortgages | Geographic Concentration Risk | Total Assets | New York | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of mortgage loans in geographic area | 24.00% | 24.00% | |||
Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | $ 4,159 | $ 4,645 | |||
Loans on nonacrrual status | 8 | 14 | |||
Accrued interest receivable | 12 | 14 | |||
Life insurance policy loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | 1,949 | 1,986 | |||
Commercial loans, other loans and notes receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | $ 3,729 | $ 3,321 | |||
[1] | See Note 8 for details of balances associated with variable interest entities. |
LENDING ACTIVITIES (Details -_2
LENDING ACTIVITIES (Details - Credit quality of commercial mortgages) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | $ 46,255 | $ 46,376 |
Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 605 | 2,688 |
Year prior | 2,829 | 6,149 |
Two years prior | 6,115 | 6,448 |
Three years prior | 6,340 | 4,172 |
Four years prior | 4,131 | 4,849 |
Five years prior | 16,398 | 12,118 |
Mortgage and other loans receivable, net | 36,418 | 36,424 |
Less than 65% | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 51 | 2,382 |
Year prior | 2,637 | 3,755 |
Two years prior | 3,552 | 3,855 |
Three years prior | 4,182 | 2,565 |
Four years prior | 2,671 | 2,852 |
Five years prior | 10,324 | 8,145 |
Mortgage and other loans receivable, net | 23,417 | 23,554 |
65% to 75% | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 218 | 274 |
Year prior | 192 | 2,330 |
Two years prior | 2,499 | 2,363 |
Three years prior | 1,958 | 1,306 |
Four years prior | 1,015 | 1,200 |
Five years prior | 4,172 | 2,551 |
Mortgage and other loans receivable, net | 10,054 | 10,024 |
76% to 80% | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 28 |
Year prior | 0 | 45 |
Two years prior | 45 | 30 |
Three years prior | 0 | 0 |
Four years prior | 0 | 70 |
Five years prior | 861 | 515 |
Mortgage and other loans receivable, net | 906 | 688 |
Greater than 80% | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 336 | 4 |
Year prior | 0 | 19 |
Two years prior | 19 | 200 |
Three years prior | 200 | 301 |
Four years prior | 445 | 727 |
Five years prior | 1,041 | 907 |
Mortgage and other loans receivable, net | 2,041 | 2,158 |
Greater than 1.2x | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 514 | 1,914 |
Year prior | 1,958 | 5,596 |
Two years prior | 5,346 | 5,649 |
Three years prior | 5,391 | 3,941 |
Four years prior | 3,861 | 4,592 |
Five years prior | 14,846 | 10,730 |
Mortgage and other loans receivable, net | 31,916 | 32,422 |
1.00X - 1.20X | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 770 |
Year prior | 871 | 467 |
Two years prior | 769 | 456 |
Three years prior | 610 | 144 |
Four years prior | 182 | 161 |
Five years prior | 1,261 | 1,106 |
Mortgage and other loans receivable, net | 3,693 | 3,104 |
Less than 1.00X | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 91 | 4 |
Year prior | 0 | 86 |
Two years prior | 0 | 343 |
Three years prior | 339 | 87 |
Four years prior | 88 | 96 |
Five years prior | 291 | 282 |
Mortgage and other loans receivable, net | $ 809 | $ 898 |
LENDING ACTIVITIES (Details -_3
LENDING ACTIVITIES (Details - Credit quality performance indicators for commercial mortgages) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Allowance for credit losses | $ 787 | $ 814 | $ 787 | $ 438 |
Debt Coverage Ratio | 2.1 | 2.2 | ||
Average Loan to Value Ratio | 59.00% | 60.00% | ||
Apartments | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | $ 14,141 | $ 13,969 | ||
Allowance for credit losses | 135 | 145 | ||
Apartments | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 14,141 | 13,969 | ||
Apartments | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Apartments | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Apartments | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Offices | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 10,642 | 10,712 | ||
Allowance for credit losses | 270 | 267 | ||
Offices | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 10,433 | 10,506 | ||
Offices | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 141 | 52 | ||
Offices | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 87 | ||
Offices | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 68 | 67 | ||
Retail | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 5,203 | 5,249 | ||
Allowance for credit losses | 140 | 145 | ||
Retail | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 5,096 | 5,144 | ||
Retail | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 50 | 50 | ||
Retail | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Retail | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 57 | 55 | ||
Industrial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 3,708 | 3,766 | ||
Allowance for credit losses | 48 | 53 | ||
Industrial | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 3,708 | 3,766 | ||
Industrial | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Industrial | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Industrial | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Hotel | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 2,262 | 2,268 | ||
Allowance for credit losses | 56 | 65 | ||
Hotel | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 2,011 | 2,064 | ||
Hotel | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 136 | 4 | ||
Hotel | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 114 | ||
Hotel | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 115 | 86 | ||
Others | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 462 | 460 | ||
Allowance for credit losses | 13 | 10 | ||
Others | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 462 | 460 | ||
Others | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Others | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Others | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | $ 0 | $ 0 | ||
Commercial mortgages | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Number of loans in good standing | loan | 678 | 688 | ||
Number of loans restructured | loan | 9 | 5 | ||
Number of loans 90 days or less delinquent | loan | 0 | 3 | ||
Number of loans greater than 90 days delinquent or in process of foreclosure | loan | 4 | 4 | ||
Number of Loans | loan | 691 | 700 | ||
Loans receivable | $ 36,418 | $ 36,424 | ||
Allowance for credit losses | $ 662 | $ 685 | ||
Percentage of loans that are current as to payments of principal and interest | 98.00% | 99.00% | ||
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 | 1.00% | 1.00% | ||
Percentage Total | 100.00% | 100.00% | ||
Percentage of loans with allowance for losses | 2.00% | 2.00% | ||
Commercial mortgages | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | $ 35,851 | $ 35,909 | ||
Commercial mortgages | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 327 | 106 | ||
Commercial mortgages | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 201 | ||
Commercial mortgages | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | $ 240 | $ 208 |
LENDING ACTIVITIES (Details -_4
LENDING ACTIVITIES (Details - Credit quality of residential mortgages by year of vintage) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | $ 187 | $ 1,020 |
Year prior | 1,201 | 1,034 |
Two years prior | 772 | 421 |
Three years prior | 314 | 675 |
Four years prior | 502 | 776 |
Five years prior | 1,183 | 719 |
Mortgage and other loans receivable, net | 4,159 | 4,645 |
780 and greater | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 111 | 522 |
Year prior | 873 | 619 |
Two years prior | 568 | 283 |
Three years prior | 217 | 469 |
Four years prior | 357 | 539 |
Five years prior | 836 | 484 |
780 and greater | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | 2,962 | 2,916 |
720 - 779 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 74 | 478 |
Year prior | 280 | 349 |
Two years prior | 163 | 103 |
Three years prior | 79 | 155 |
Four years prior | 111 | 180 |
Five years prior | 250 | 156 |
720 - 779 | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | 957 | 1,421 |
660 - 719 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 2 | 19 |
Year prior | 47 | 61 |
Two years prior | 37 | 28 |
Three years prior | 14 | 42 |
Four years prior | 30 | 51 |
Five years prior | 71 | 58 |
660 - 719 | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | 201 | 259 |
600 - 659 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 1 |
Year prior | 1 | 5 |
Two years prior | 3 | 6 |
Three years prior | 3 | 7 |
Four years prior | 2 | 4 |
Five years prior | 17 | 12 |
600 - 659 | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | 26 | 35 |
Less than 600 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 0 |
Year prior | 0 | 0 |
Two years prior | 1 | 1 |
Three years prior | 1 | 2 |
Four years prior | 2 | 2 |
Five years prior | 9 | 9 |
Less than 600 | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | $ 13 | $ 14 |
LENDING ACTIVITIES (Details - R
LENDING ACTIVITIES (Details - Rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Mortgage and other loan receivables, balance, beginning of year | $ 814 | $ 438 | |
Initial allowance upon CECL adoption | 0 | 318 | |
Loans charged off | 0 | 0 | |
Recoveries of loans previously charged off | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Provision for (release of) loan losses | (27) | 31 | |
Mortgage and other loan receivables, balance, end of period | 787 | 787 | |
Loans modified in a troubled debt restructuring | 46 | 25 | |
Commercial mortgages | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Mortgage and other loan receivables, balance, beginning of year | 685 | 336 | |
Initial allowance upon CECL adoption | 0 | 311 | |
Loans charged off | 0 | 0 | |
Recoveries of loans previously charged off | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Provision for (release of) loan losses | (23) | 42 | |
Mortgage and other loan receivables, balance, end of period | 662 | 689 | |
Off-balance-sheet commitments | 70 | 58 | $ 79 |
Other Loans | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Mortgage and other loan receivables, balance, beginning of year | 129 | 102 | |
Initial allowance upon CECL adoption | 0 | 7 | |
Loans charged off | 0 | 0 | |
Recoveries of loans previously charged off | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Provision for (release of) loan losses | (4) | (11) | |
Mortgage and other loan receivables, balance, end of period | $ 125 | $ 98 |
REINSURANCE (Details - Summary
REINSURANCE (Details - Summary of the composition of pool of assets) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | ||
Effects of Reinsurance [Line Items] | |||
Fixed maturity securities - available for sale, Carrying Value | [1] | $ 263,012 | $ 271,496 |
Fixed maturity securities - fair value option, Carrying Value | [1] | 4,973 | 5,291 |
Loans, Carrying Value | 46,255 | 46,376 | |
Investments, Carrying Value | [1] | 19,390 | 19,060 |
Short-term investments, Carrying Value | [1] | 14,454 | 18,203 |
Derivative assets, net, Carrying Value | 893 | 774 | |
Other, Carrying Value | [1] | 13,223 | 13,122 |
Fixed maturity securities - available for sale, Fair Value | [1] | 263,012 | 271,496 |
Fixed maturity securities - fair value option, Fair Value | [1] | 4,973 | 5,291 |
Investments, Fair Value | 8,713 | 8,422 | |
Derivative assets, net, Fair Value | 5,287 | 6,805 | |
Commercial mortgages | |||
Effects of Reinsurance [Line Items] | |||
Loans, Carrying Value | 36,418 | 36,424 | |
Fortitude Holdings | |||
Effects of Reinsurance [Line Items] | |||
Fixed maturity securities - available for sale, Carrying Value | 33,280 | 36,047 | |
Fixed maturity securities - fair value option, Carrying Value | 185 | 200 | |
Short-term investments, Carrying Value | 48 | 34 | |
Funds withheld investment assets, Carrying Value | 39,172 | 41,899 | |
Derivative assets, net, Carrying Value | 0 | (1) | |
Other, Carrying Value | 532 | 604 | |
Total, Carrying Value | 39,704 | 42,502 | |
Fixed maturity securities - available for sale, Fair Value | 33,280 | 36,047 | |
Fixed maturity securities - fair value option, Fair Value | 185 | 200 | |
Short-term investments, Fair Value | 48 | 34 | |
Funds withheld investment assets, Fair Value | 39,649 | 42,457 | |
Derivative assets, net, Fair Value | 0 | (1) | |
Other, Fair Value | 532 | 604 | |
Total | 40,181 | 43,060 | |
Change in net unrealized gains (losses), gross | (2,900) | ||
Change in net unrealized gains (losses), net of tax | (2,300) | ||
Derivative asset, Fair value of collateral | 287 | 357 | |
Derivative liability, Fair value of collateral | 12 | ||
Fortitude Holdings | Real Estate Funds | |||
Effects of Reinsurance [Line Items] | |||
Investments, Carrying Value | 326 | 358 | |
Investments, Fair Value | 559 | 585 | |
Fortitude Holdings | Direct private equity | |||
Effects of Reinsurance [Line Items] | |||
Investments, Carrying Value | 1,216 | 1,168 | |
Investments, Fair Value | 1,216 | 1,168 | |
Fortitude Holdings | Policy Loans | |||
Effects of Reinsurance [Line Items] | |||
Loans, Carrying Value | 404 | 413 | |
Loans, Fair Value | 404 | 413 | |
Fortitude Holdings | Commercial mortgages | |||
Effects of Reinsurance [Line Items] | |||
Loans, Carrying Value | 3,713 | 3,679 | |
Loans, Fair Value | $ 3,957 | $ 4,010 | |
[1] | See Note 8 for details of balances associated with variable interest entities. |
REINSURANCE (Details - Summar_2
REINSURANCE (Details - Summary of the impact of funds withheld arrangements with Fortitude Re) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Effects of Reinsurance [Line Items] | ||
Net investment income | $ 3,657 | $ 2,508 |
Net realized capital gains | 3,250 | 3,519 |
Income from continuing operations before income tax benefit | 4,728 | 2,558 |
Income tax expense | 798 | 904 |
Net income | $ 3,930 | $ 1,654 |
U.S. federal income tax at statutory rate (as a percent) | 21.00% | 21.00% |
Fortitude Re funds withheld assets | ||
Effects of Reinsurance [Line Items] | ||
Net investment income | $ 486 | $ 0 |
Net realized capital gains | 173 | $ 0 |
Fortitude Holdings | ||
Effects of Reinsurance [Line Items] | ||
Net underwriting income | 0 | |
Net investment income | 486 | |
Net realized capital gains | 2,555 | |
Income from continuing operations before income tax benefit | 3,041 | |
Income tax expense | 639 | |
Net income | 2,402 | |
Change in unrealized appreciation of all other investments | (2,340) | |
Comprehensive income | 62 | |
Fortitude Holdings | Fortitude Re funds withheld assets | ||
Effects of Reinsurance [Line Items] | ||
Net realized capital gains | 173 | |
Fortitude Holdings | Fortitude Re funds withheld assets | Embedded derivatives | ||
Effects of Reinsurance [Line Items] | ||
Net realized capital gains | $ 2,382 |
REINSURANCE (Details - Rollforw
REINSURANCE (Details - Rollforward of the reinsurance recoverable allowance for credit losses) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, balance, beginning of year | $ 375 | $ 151 |
Initial allowance upon CECL adoption | 0 | 224 |
Current period provision for expected credit losses and disputes | 5 | (2) |
Write-offs charged against the allowance for credit losses and disputes | (4) | (7) |
Other changes | 2 | (4) |
Reinsurance recoverables, balance, end of period | 378 | 362 |
General Insurance | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, balance, beginning of year | 292 | 111 |
Initial allowance upon CECL adoption | 0 | 202 |
Current period provision for expected credit losses and disputes | 1 | (4) |
Write-offs charged against the allowance for credit losses and disputes | (4) | (3) |
Other changes | 2 | (4) |
Reinsurance recoverables, balance, end of period | 291 | 302 |
Life and Retirement | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, balance, beginning of year | 83 | 40 |
Initial allowance upon CECL adoption | 0 | 22 |
Current period provision for expected credit losses and disputes | 4 | 2 |
Write-offs charged against the allowance for credit losses and disputes | 0 | (4) |
Other changes | 0 | 0 |
Reinsurance recoverables, balance, end of period | $ 87 | $ 60 |
REINSURANCE (Details - Narrativ
REINSURANCE (Details - Narrative) - Consolidation Items [Domain] | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Effects of Reinsurance [Line Items] | |
Reinsurance recoverables | $ 78,200,000,000 |
Reinsurance assets, paid loss recoveries | $ 0 |
Investment Grade | |
Effects of Reinsurance [Line Items] | |
Reinsurance recoverables, percent | 93.00% |
Non-Investment Grade | |
Effects of Reinsurance [Line Items] | |
Reinsurance recoverables, percent | 6.00% |
Non-Investment Grade | Captive Insurers | |
Effects of Reinsurance [Line Items] | |
Reinsurance recoverables, percent | 73.00% |
Not Rated | |
Effects of Reinsurance [Line Items] | |
Reinsurance recoverables, percent | 1.00% |
General Insurance | Investment Grade | |
Effects of Reinsurance [Line Items] | |
Reinsurance recoverables, percent | 52.00% |
Life and Retirement | Investment Grade | |
Effects of Reinsurance [Line Items] | |
Reinsurance recoverables, percent | 41.00% |
Life and Retirement | Non-Investment Grade | Maximum | |
Effects of Reinsurance [Line Items] | |
Reinsurance recoverables, percent | 1.00% |
Fortitude Holdings | Legacy life and retirement run-off lines | |
Effects of Reinsurance [Line Items] | |
Reserves ceded | $ 30,300,000,000 |
Fortitude Holdings | Legacy General Insurance Run Off Lines Segment | |
Effects of Reinsurance [Line Items] | |
Reserves ceded | $ 4,000,000,000 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | ||||
Assets: | ||||||
Bonds available for sale | [1] | $ 263,012,000,000 | $ 271,496,000,000 | |||
Other bond securities | [1] | 4,973,000,000 | 5,291,000,000 | |||
Equity securities | [1] | 1,160,000,000 | 1,056,000,000 | |||
Mortgage and other loans receivable | [1] | 45,468,000,000 | 45,562,000,000 | |||
Other invested assets | [1] | 19,390,000,000 | 19,060,000,000 | |||
Short-term investments | [1] | 14,454,000,000 | 18,203,000,000 | |||
Accrued investment income | [1] | 2,309,000,000 | 2,271,000,000 | |||
Cash | 2,796,000,000 | [1] | $ 2,738,000,000 | 2,827,000,000 | [1] | |
Other | [1] | 13,223,000,000 | 13,122,000,000 | |||
Total assets | 584,390,000,000 | 586,481,000,000 | ||||
Liabilities: | ||||||
Long-term debt | [1] | 26,432,000,000 | 28,103,000,000 | |||
Total liabilities | 520,830,000,000 | 519,282,000,000 | ||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Repayment of debt | 1,515,000,000 | 363,000,000 | ||||
Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt | [1] | 9,216,000,000 | 9,431,000,000 | |||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Repayment of debt | 900,000,000 | $ 521,000,000 | ||||
Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 9,589,000,000 | 9,572,000,000 | ||||
Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 8,172,000,000 | 7,930,000,000 | ||||
Real Estate and Investment Entities | ||||||
Liabilities: | ||||||
Off-balance sheet exposure | 2,200,000,000 | 2,400,000,000 | ||||
Real Estate and Investment Entities | External | ||||||
Liabilities: | ||||||
Off-balance sheet exposure | 600,000,000 | 700,000,000 | ||||
Consolidated VIE | ||||||
Assets: | ||||||
Bonds available for sale | 5,728,000,000 | 6,089,000,000 | ||||
Other bond securities | 2,226,000,000 | 2,367,000,000 | ||||
Equity securities | 558,000,000 | 507,000,000 | ||||
Mortgage and other loans receivable | 2,422,000,000 | 3,135,000,000 | ||||
Short-term investments | 1,265,000,000 | 1,926,000,000 | ||||
Accrued investment income | 33,000,000 | 38,000,000 | ||||
Cash | 378,000,000 | 332,000,000 | ||||
Other assets | 430,000,000 | 529,000,000 | ||||
Other | 28,000,000 | 5,000,000 | ||||
Total assets | 23,111,000,000 | 24,553,000,000 | ||||
Liabilities: | ||||||
Long-term debt | 8,592,000,000 | 8,809,000,000 | ||||
Other liabilities | 773,000,000 | 564,000,000 | ||||
Total liabilities | 9,365,000,000 | 9,373,000,000 | ||||
Consolidated VIE | Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 2,860,000,000 | 2,689,000,000 | ||||
Consolidated VIE | Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 7,183,000,000 | 6,936,000,000 | ||||
Consolidated VIE | Real Estate and Investment Entities | ||||||
Assets: | ||||||
Bonds available for sale | 0 | 0 | ||||
Other bond securities | 0 | 0 | ||||
Equity securities | 558,000,000 | 507,000,000 | ||||
Mortgage and other loans receivable | 0 | 0 | ||||
Short-term investments | 174,000,000 | 365,000,000 | ||||
Accrued investment income | 0 | 0 | ||||
Cash | 129,000,000 | 129,000,000 | ||||
Other assets | 129,000,000 | 166,000,000 | ||||
Other | 26,000,000 | 3,000,000 | ||||
Total assets | 7,180,000,000 | 7,237,000,000 | ||||
Liabilities: | ||||||
Long-term debt | 2,529,000,000 | 2,559,000,000 | ||||
Other liabilities | 169,000,000 | 180,000,000 | ||||
Total liabilities | 2,698,000,000 | 2,739,000,000 | ||||
Consolidated VIE | Real Estate and Investment Entities | Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 2,860,000,000 | 2,689,000,000 | ||||
Consolidated VIE | Real Estate and Investment Entities | Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 3,304,000,000 | 3,378,000,000 | ||||
Consolidated VIE | Securitization Vehicles | ||||||
Assets: | ||||||
Bonds available for sale | 5,728,000,000 | 6,089,000,000 | ||||
Other bond securities | 2,226,000,000 | 2,367,000,000 | ||||
Equity securities | 0 | 0 | ||||
Mortgage and other loans receivable | 2,422,000,000 | 3,135,000,000 | ||||
Short-term investments | 1,071,000,000 | 1,534,000,000 | ||||
Accrued investment income | 33,000,000 | 38,000,000 | ||||
Cash | 0 | 0 | ||||
Other assets | 41,000,000 | 120,000,000 | ||||
Other | 0 | 0 | ||||
Total assets | 11,521,000,000 | 13,283,000,000 | ||||
Liabilities: | ||||||
Long-term debt | 3,548,000,000 | 3,961,000,000 | ||||
Other liabilities | 397,000,000 | 187,000,000 | ||||
Total liabilities | 3,945,000,000 | 4,148,000,000 | ||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Total assets contributed into consolidated securitization vehicles | 10,800,000,000 | 12,500,000,000 | ||||
Consolidated VIE | Securitization Vehicles | Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 0 | 0 | ||||
Consolidated VIE | Securitization Vehicles | Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 0 | 0 | ||||
Consolidated VIE | Affordable Housing Partnerships | ||||||
Assets: | ||||||
Bonds available for sale | 0 | 0 | ||||
Other bond securities | 0 | 0 | ||||
Equity securities | 0 | 0 | ||||
Mortgage and other loans receivable | 0 | 0 | ||||
Short-term investments | 0 | 0 | ||||
Accrued investment income | 0 | 0 | ||||
Cash | 249,000,000 | 203,000,000 | ||||
Other assets | 260,000,000 | 243,000,000 | ||||
Other | 0 | 0 | ||||
Total assets | 4,388,000,000 | 4,004,000,000 | ||||
Liabilities: | ||||||
Long-term debt | 2,515,000,000 | 2,287,000,000 | ||||
Other liabilities | 198,000,000 | 187,000,000 | ||||
Total liabilities | 2,713,000,000 | 2,474,000,000 | ||||
Consolidated VIE | Affordable Housing Partnerships | Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 0 | 0 | ||||
Consolidated VIE | Affordable Housing Partnerships | Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 3,879,000,000 | 3,558,000,000 | ||||
Consolidated VIE | Other | ||||||
Assets: | ||||||
Bonds available for sale | 0 | 0 | ||||
Other bond securities | 0 | 0 | ||||
Equity securities | 0 | 0 | ||||
Mortgage and other loans receivable | 0 | 0 | ||||
Short-term investments | 20,000,000 | 27,000,000 | ||||
Accrued investment income | 0 | 0 | ||||
Cash | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Other | 2,000,000 | 2,000,000 | ||||
Total assets | 22,000,000 | 29,000,000 | ||||
Liabilities: | ||||||
Long-term debt | 0 | 2,000,000 | ||||
Other liabilities | 9,000,000 | 10,000,000 | ||||
Total liabilities | 9,000,000 | 12,000,000 | ||||
Consolidated VIE | Other | Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 0 | 0 | ||||
Consolidated VIE | Other | Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 0 | 0 | ||||
Unconsolidated VIE | ||||||
Assets: | ||||||
Other invested assets | 6,800,000,000 | 6,800,000,000 | ||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Total VIE Assets | 339,462,000,000 | 326,250,000,000 | ||||
Maximum Exposure to Loss, On-Balance Sheet | 6,985,000,000 | 6,983,000,000 | ||||
Maximum Exposure to Loss, Off-Balance Sheet | 3,907,000,000 | 3,823,000,000 | ||||
Total maximum exposure to loss | 10,892,000,000 | 10,806,000,000 | ||||
Unconsolidated VIE | Real Estate and Investment Entities | ||||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Total VIE Assets | 335,307,000,000 | 321,716,000,000 | ||||
Maximum Exposure to Loss, On-Balance Sheet | 6,482,000,000 | 6,420,000,000 | ||||
Maximum Exposure to Loss, Off-Balance Sheet | 3,378,000,000 | 3,273,000,000 | ||||
Total maximum exposure to loss | 9,860,000,000 | 9,693,000,000 | ||||
Unconsolidated VIE | Affordable Housing Partnerships | ||||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Total VIE Assets | 2,429,000,000 | 2,801,000,000 | ||||
Maximum Exposure to Loss, On-Balance Sheet | 300,000,000 | 368,000,000 | ||||
Maximum Exposure to Loss, Off-Balance Sheet | 1,000,000 | 4,000,000 | ||||
Total maximum exposure to loss | 301,000,000 | 372,000,000 | ||||
Unconsolidated VIE | Other | ||||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Total VIE Assets | 1,726,000,000 | 1,733,000,000 | ||||
Maximum Exposure to Loss, On-Balance Sheet | 203,000,000 | 195,000,000 | ||||
Maximum Exposure to Loss, Off-Balance Sheet | 528,000,000 | 546,000,000 | ||||
Total maximum exposure to loss | 731,000,000 | $ 741,000,000 | ||||
Indirectly wholly owned subsidiary | Securitization Vehicles | ||||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Payments related to guarantees | 0 | |||||
Indirectly wholly owned subsidiary | Securitization Vehicles | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt | 125,000,000 | |||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Repayment of debt | $ 50,000,000 | |||||
[1] | See Note 8 for details of balances associated with variable interest entities. |
DERIVATIVES AND HEDGE ACCOUNT_3
DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of derivative instruments) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | $ 141,364 | $ 148,222 |
Gross Derivative Assets, Fair Value | 5,287 | 6,805 |
Gross Derivative Liabilities, Notional Amount | 67,932 | 77,471 |
Gross Derivative Liabilities, Fair Value | 5,912 | 5,822 |
Derivative assets, Counterparty netting | (3,080) | (3,812) |
Derivative assets, Cash collateral | (1,314) | (2,219) |
Total derivative assets on consolidated balance sheet | 893 | 774 |
Derivative liabilities, Counterparty netting | (3,080) | (3,812) |
Derivative liabilities, Cash collateral | (2,129) | (1,441) |
Total derivative liabilities on consolidated balance sheet | 703 | 569 |
Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Bifurcated embedded derivative liabilities, fair value | 11,100 | 15,800 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 877 | 815 |
Gross Derivative Assets, Fair Value | 16 | 16 |
Gross Derivative Liabilities, Notional Amount | 295 | 356 |
Gross Derivative Liabilities, Fair Value | 6 | 11 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 6,232 | 3,468 |
Gross Derivative Assets, Fair Value | 380 | 256 |
Gross Derivative Liabilities, Notional Amount | 4,135 | 7,424 |
Gross Derivative Liabilities, Fair Value | 293 | 379 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 49,790 | 62,259 |
Gross Derivative Assets, Fair Value | 3,608 | 4,621 |
Gross Derivative Liabilities, Notional Amount | 47,401 | 48,732 |
Gross Derivative Liabilities, Fair Value | 4,898 | 4,425 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 13,476 | 9,518 |
Gross Derivative Assets, Fair Value | 689 | 766 |
Gross Derivative Liabilities, Notional Amount | 7,258 | 12,860 |
Gross Derivative Liabilities, Fair Value | 561 | 711 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 23,163 | 22,924 |
Gross Derivative Assets, Fair Value | 580 | 1,130 |
Gross Derivative Liabilities, Notional Amount | 7,830 | 7,076 |
Gross Derivative Liabilities, Fair Value | 85 | 223 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 4,796 | 5,797 |
Gross Derivative Assets, Fair Value | 1 | 2 |
Gross Derivative Liabilities, Notional Amount | 958 | 969 |
Gross Derivative Liabilities, Fair Value | 65 | 67 |
Derivatives not designated as hedging instruments | Credit contracts | CDS | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Notional Amount | 125 | 137 |
Gross Derivative Liabilities, Fair Value | 44 | 44 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 43,030 | 43,441 |
Gross Derivative Assets, Fair Value | 13 | 14 |
Gross Derivative Liabilities, Notional Amount | 55 | 54 |
Gross Derivative Liabilities, Fair Value | $ 4 | $ 6 |
DERIVATIVES AND HEDGE ACCOUNT_4
DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Billions | Mar. 31, 2021 | Dec. 31, 2020 |
Collateral | ||
Collateral posted to third parties for derivative transactions | $ 3.6 | $ 3 |
Collateral obtained from third parties for derivative transactions | $ 1.7 | $ 2.3 |
DERIVATIVES AND HEDGE ACCOUNT_5
DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships | $ 101 | $ 99 |
Net realized capital gains (losses) | Modified Coinsurance And Funds Withheld Assets [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | 2,265 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Interest credited to policyholder account balances | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | (4) | 17 |
Gain (loss) recognized in earnings on hedged items | 6 | (17) |
Gains/(losses) recognized in earnings for excluded components | 0 | 0 |
Net Impact | 2 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Net investment income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | 8 | (3) |
Gain (loss) recognized in earnings on hedged items | (7) | 3 |
Gains/(losses) recognized in earnings for excluded components | 0 | 0 |
Net Impact | 1 | 0 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Net realized capital gains (losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | 32 | 305 |
Gain (loss) recognized in earnings on hedged items | (32) | (305) |
Gains/(losses) recognized in earnings for excluded components | (29) | 281 |
Net Impact | (29) | 281 |
Derivatives not designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | 2,698 | 3,781 |
Derivatives not designated as hedging instruments | Net realized capital gains (losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | 440 | 3,752 |
Derivatives not designated as hedging instruments | Net investment income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | (12) | (2) |
Derivatives not designated as hedging instruments | Policy fees | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | 15 | 15 |
Derivatives not designated as hedging instruments | Policyholder benefits and claims incurred | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | (10) | 16 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | (1,545) | 2,573 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | (87) | 1,025 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | (519) | 1,103 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | (5) | 122 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | 15 | 10 |
Derivatives not designated as hedging instruments | Embedded derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | $ 4,839 | $ (1,052) |
DERIVATIVES AND HEDGE ACCOUNT_6
DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Credit Derivatives [Line Items] | ||
Collateral posted | $ 3,600 | $ 3,000 |
Fair value of hybrid securities | 2,300 | 2,400 |
Par value of hybrid securities | 4,900 | 5,000 |
Credit Risk Related Contingent Features [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral posted | 256 | 306 |
Aggregate fair value of net liability position | 216 | $ 257 |
Additional collateral postings and termination payments | $ 40 |
INSURANCE LIABILITIES (Details
INSURANCE LIABILITIES (Details - Liability for Unpaid Losses and Loss Adjustment Expenses) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jan. 20, 2017 | |
Supplementary Insurance Information, by Segment [Line Items] | ||||
Contractual deductible recoverable amount | $ 12,500 | $ 12,600 | ||
Collateral Held For Deductible Recoverable Amounts | 9,200 | 9,200 | ||
Allowance for credit losses for unsecured reinsurance recoverable | 14 | $ 14 | ||
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense: | ||||
Liability for unpaid loss and loss adjustment expenses, beginning of period | 77,720 | $ 78,328 | ||
Reinsurance recoverable, balance at the beginning of the period | (34,431) | (31,069) | ||
Initial allowance upon CECL adoption | 0 | 164 | ||
Net Liability for unpaid loss and loss adjustment expenses, beginning of period | 43,289 | 47,423 | ||
Losses and loss adjustment expenses incurred | ||||
Current year | 3,925 | 4,111 | ||
Prior years, excluding discount and amortization of deferred gain | 16 | (1) | ||
Prior years, discount charge (benefit) | (18) | 76 | ||
Prior years, amortization of deferred gain on retroactive reinsurance | (72) | (75) | ||
Total losses and loss adjustment expenses incurred | 3,851 | 4,111 | ||
Losses and loss adjustment expenses paid | ||||
Current year | (328) | (342) | ||
Prior years | (3,584) | (4,351) | ||
Total losses and loss adjustment expenses paid | (3,912) | (4,693) | ||
Other changes: | ||||
Foreign exchange effect | 244 | (230) | ||
Allowance for credit losses | 0 | 0 | ||
Retroactive reinsurance adjustment (net of discount) | 89 | 22 | ||
Total other changes | 333 | (208) | ||
Net liability for unpaid losses and loss adjustment expenses, end of period | 43,561 | 46,633 | ||
Reinsurance recoverable, balance at the end of the period | 35,271 | 31,114 | ||
Total, balance at the end of period | 78,832 | 77,747 | ||
Change in discount on loss reserves ceded under retroactive reinsurance | 39 | 72 | ||
U.S. Commercial long-tail exposures | NICO | Accident Years 2015 and Prior | ||||
Other changes: | ||||
Discount on retroactive reinsurance | $ 17 | $ 8 | ||
Risk Transferred - U.S. Commercial long-tail exposures for accident years 2015 and prior, percent | 80.00% | |||
Reinsurance Percent Ceded on Paid Losses Percent | 80.00% | |||
Ceded to NICO net paid losses in excess | $ 25,000 | |||
Ceded to NICO net paid losses in excess, aggregate limit | 25,000 | |||
NICO's limit of liability under the contract | 20,000 | |||
Consideration paid, including interest | $ 10,200 |
INSURANCE LIABILITIES (Detail_2
INSURANCE LIABILITIES (Details - Discounting of Reserves) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Discounting of Reserves [Line Items] | |||
Workers Compensation Tabular Discount Amount | $ 311 | $ 285 | |
Workers Compensation Non Tabular Discount Amount | 485 | 440 | |
U.S. Workers' compensation | 1,668 | 1,636 | |
Retroactive Reinsurance | (872) | (911) | |
Total reserve discount | 796 | 725 | |
Current accident year | 14 | $ 20 | |
Accretion and other adjustments to prior year discount | 18 | (76) | |
Effect of interest rate changes | 0 | 0 | |
Net loss reserve discount charge | 32 | (56) | |
Change in discount on loss reserves ceded under retroactive reinsurance | 39 | 72 | |
Net change in total reserve discount | 71 | 16 | |
Fortitude [Member] | |||
Discounting of Reserves [Line Items] | |||
Total reserve discount | $ 513 | $ 493 | |
Percent of discount ceded on sale | 100.00% | 100.00% | |
North America Commercial Insurance | |||
Discounting of Reserves [Line Items] | |||
U.S. Workers' compensation | $ 1,668 | $ 1,636 | |
Retroactive Reinsurance | (872) | (911) | |
Total reserve discount | 796 | 725 | |
Current accident year | 14 | 20 | |
Accretion and other adjustments to prior year discount | 18 | (67) | |
Effect of interest rate changes | 0 | 0 | |
Net loss reserve discount charge | 32 | (47) | |
Change in discount on loss reserves ceded under retroactive reinsurance | 39 | 72 | |
Net change in total reserve discount | 71 | 25 | |
Other Operations Run-Off | |||
Discounting of Reserves [Line Items] | |||
U.S. Workers' compensation | 0 | 0 | |
Retroactive Reinsurance | 0 | 0 | |
Total reserve discount | 0 | 0 | |
Current accident year | 0 | 0 | |
Accretion and other adjustments to prior year discount | 0 | (9) | |
Effect of interest rate changes | 0 | 0 | |
Net loss reserve discount charge | 0 | (9) | |
Change in discount on loss reserves ceded under retroactive reinsurance | 0 | 0 | |
Net change in total reserve discount | $ 0 | (9) | |
New York | |||
Discounting of Reserves [Line Items] | |||
Nontabular discount rate | 5.00% | ||
United Kingdom | |||
Discounting of Reserves [Line Items] | |||
Net loss reserve discount charge | $ 158 | $ 151 | |
Net change in total reserve discount | $ 7 | $ (2) |
CONTINGENCIES, COMMITMENTS AN_2
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Contingencies, Commitments and Guarantees) $ in Millions | Mar. 31, 2021USD ($) |
Future undiscounted cash flows under operating leases | |
Other commitments | $ 6,700 |
Amount outstanding under standby letters of credit at end of period | 75 |
Fortitude [Member] | |
Future undiscounted cash flows under operating leases | |
Maximum purchase price adjustment payable | $ 500 |
EQUITY (Details - Preferred Sto
EQUITY (Details - Preferred Stock) - USD ($) $ / shares in Units, $ in Millions | Mar. 30, 2021 | Mar. 15, 2021 | Mar. 30, 2020 | Mar. 16, 2020 | Mar. 14, 2019 | Mar. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | |||||||
Issuances (in shares) | 5,857,575 | ||||||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 | |||||
Preferred stock liquidation preference | $ 500 | $ 500 | |||||
Date dividends declared | Feb. 16, 2021 | Feb. 12, 2020 | |||||
Date dividends paid | Mar. 30, 2021 | Mar. 30, 2020 | |||||
Date of record | Mar. 16, 2021 | Mar. 16, 2020 | |||||
Series A Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Issuances (in shares) | 20,000 | ||||||
Preferred stock, dividend rate (as a percent) | 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 | Feb. 16, 2021 | Feb. 12, 2020 | |||||
Preferred Stock Dividends Per Share Cash Paid | $ 365.625 | $ 365.625 | |||||
Date dividends paid | Mar. 15, 2021 | Mar. 16, 2020 | |||||
Date of record | Feb. 26, 2021 | Feb. 28, 2020 | |||||
Depositary Shares | |||||||
Class of Stock [Line Items] | |||||||
Issuances (in shares) | 20,000,000 | ||||||
Preferred stock liquidation preference | $ 25 | ||||||
Date dividends declared | Feb. 16, 2021 | Feb. 12, 2020 | |||||
Preferred Stock Dividends Per Share Cash Paid | $ 0.365625 | $ 0.365625 | |||||
Date dividends paid | Mar. 15, 2021 | Mar. 16, 2020 | |||||
Date of record | Feb. 26, 2021 | Feb. 28, 2020 |
EQUITY (Details - Common Stock
EQUITY (Details - Common Stock and Dividends) - USD ($) $ / shares in Units, $ in Millions | Mar. 30, 2021 | Mar. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Feb. 13, 2019 |
The following table presents a roll forward of outstanding shares: | |||||
Shares, beginning of year | (1,045,113,443) | ||||
Shares, beginning of year | 1,906,671,492 | ||||
Shares, beginning of year | 861,558,049 | ||||
Shares issued | 5,857,575 | ||||
Shares repurchased | (8,032,171) | (12,000,000) | |||
Shares, end of period | (1,047,288,039) | ||||
Shares, end of period | 1,906,671,492 | ||||
Shares, end of period | 859,383,453 | ||||
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 | |||
Date of Shareholders of Record | Mar. 16, 2021 | Mar. 16, 2020 | |||
Date Dividends Declared | Feb. 16, 2021 | Feb. 12, 2020 | |||
Date Dividends To Be Paid | Mar. 30, 2021 | Mar. 30, 2020 | |||
Authorized amount of common stock share repurchase | $ 1,500 | ||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 1,100 | ||||
Aggregate repurchases of common stock | $ 500 | ||||
Shares purchased | 8,000,000 | 12,000,000 | |||
Aggregate repurchases of common stock | $ 362 | $ 500 | |||
Aggregate repurchases of warrants | $ 0 | $ 0 | |||
Total number of warrants repurchased | 0 | 0 | |||
Common Stock Issued | |||||
The following table presents a roll forward of outstanding shares: | |||||
Shares, beginning of year | 1,906,671,492 | ||||
Shares issued | 0 | ||||
Shares repurchased | 0 | ||||
Shares, end of period | 1,906,671,492 | ||||
Treasury Stock | |||||
The following table presents a roll forward of outstanding shares: | |||||
Shares, beginning of year | (1,045,113,443) | ||||
Shares issued | 5,857,575 | ||||
Shares repurchased | (8,032,171) | ||||
Shares, end of period | (1,047,288,039) |
EQUITY (Details - Rollforward o
EQUITY (Details - Rollforward of Accumulated other comprehensive income (loss)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period, net of tax | $ 13,511 | $ 4,982 |
Change in unrealized appreciation (depreciation) of investments | (11,649) | (10,455) |
Change in deferred policy acquisition costs adjustment and other | 1,391 | 1,407 |
Change in future policy benefits | 1,145 | 1,672 |
Changes in foreign currency translation adjustments | 170 | (69) |
Change in net actuarial (gain) loss | (1) | 4 |
Change in prior service cost (credit) | 2 | (1) |
Change in deferred tax asset (liability) | 1,898 | 1,449 |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | (1) | 3 |
Other comprehensive income (loss) | (7,045) | (5,990) |
Noncontrolling interests | 0 | (14) |
Balance, end of period, net of tax | 6,466 | (994) |
Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) | (7,045) | (5,976) |
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Allowance for Credit Losses Were Taken | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period, net of tax | (95) | 0 |
Change in unrealized appreciation (depreciation) of investments | 41 | (484) |
Change in deferred policy acquisition costs adjustment and other | (2) | 30 |
Change in future policy benefits | 0 | 0 |
Changes in foreign currency translation adjustments | 0 | 0 |
Change in net actuarial (gain) loss | 0 | 0 |
Change in prior service cost (credit) | 0 | 0 |
Change in deferred tax asset (liability) | (6) | 95 |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | 0 | 0 |
Other comprehensive income (loss) | 33 | (359) |
Noncontrolling interests | 0 | 0 |
Balance, end of period, net of tax | (62) | (359) |
Unrealized Appreciation (Depreciation) of All Other Investments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period, net of tax | 17,093 | 8,722 |
Change in unrealized appreciation (depreciation) of investments | (11,690) | (9,971) |
Change in deferred policy acquisition costs adjustment and other | 1,393 | 1,377 |
Change in future policy benefits | 1,145 | 1,672 |
Changes in foreign currency translation adjustments | 0 | 0 |
Change in net actuarial (gain) loss | 0 | 0 |
Change in prior service cost (credit) | 0 | 0 |
Change in deferred tax asset (liability) | 1,953 | 1,380 |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | 0 | 0 |
Other comprehensive income (loss) | (7,199) | (5,542) |
Noncontrolling interests | 0 | (10) |
Balance, end of period, net of tax | 9,894 | 3,190 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period, net of tax | (2,267) | (2,625) |
Change in unrealized appreciation (depreciation) of investments | 0 | 0 |
Change in deferred policy acquisition costs adjustment and other | 0 | 0 |
Change in future policy benefits | 0 | 0 |
Changes in foreign currency translation adjustments | 170 | (69) |
Change in net actuarial (gain) loss | 0 | 0 |
Change in prior service cost (credit) | 0 | 0 |
Change in deferred tax asset (liability) | (45) | (16) |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | 0 | 0 |
Other comprehensive income (loss) | 125 | (85) |
Noncontrolling interests | 0 | (4) |
Balance, end of period, net of tax | (2,142) | (2,706) |
Retirement Plan Liabilities Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period, net of tax | (1,228) | (1,122) |
Change in unrealized appreciation (depreciation) of investments | 0 | 0 |
Change in deferred policy acquisition costs adjustment and other | 0 | 0 |
Change in future policy benefits | 0 | 0 |
Changes in foreign currency translation adjustments | 0 | 0 |
Change in net actuarial (gain) loss | (1) | 4 |
Change in prior service cost (credit) | 2 | (1) |
Change in deferred tax asset (liability) | (4) | (10) |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | 0 | 0 |
Other comprehensive income (loss) | (3) | (7) |
Noncontrolling interests | 0 | 0 |
Balance, end of period, net of tax | (1,231) | (1,129) |
Fair Value of Liabilities Under Fair Value Option Attributable to Changes in Own Credit Risk | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period, net of tax | 8 | 7 |
Change in unrealized appreciation (depreciation) of investments | 0 | 0 |
Change in deferred policy acquisition costs adjustment and other | 0 | 0 |
Change in future policy benefits | 0 | 0 |
Changes in foreign currency translation adjustments | 0 | 0 |
Change in net actuarial (gain) loss | 0 | 0 |
Change in prior service cost (credit) | 0 | 0 |
Change in deferred tax asset (liability) | 0 | 0 |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | (1) | 3 |
Other comprehensive income (loss) | (1) | 3 |
Noncontrolling interests | 0 | 0 |
Balance, end of period, net of tax | $ 7 | $ 10 |
EQUITY (Details - Other compreh
EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | $ (8,566) | $ (7,235) |
Less: Reclassification adjustments included in net income | 377 | 204 |
Total other comprehensive income (loss), before income tax expense (benefit) | (8,943) | (7,439) |
Less: Income tax expense (benefit) | (1,898) | (1,449) |
Other comprehensive loss | (7,045) | (5,990) |
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Allowance for Credit Losses Were Taken | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | 37 | (454) |
Less: Reclassification adjustments included in net income | (2) | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | 39 | (454) |
Less: Income tax expense (benefit) | 6 | (95) |
Other comprehensive loss | 33 | (359) |
Unrealized Appreciation (Depreciation) of All Other Investments | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | (8,761) | (6,708) |
Less: Reclassification adjustments included in net income | 391 | 214 |
Total other comprehensive income (loss), before income tax expense (benefit) | (9,152) | (6,922) |
Less: Income tax expense (benefit) | (1,953) | (1,380) |
Other comprehensive loss | (7,199) | (5,542) |
Foreign Currency Translation Adjustments | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | 170 | (69) |
Less: Reclassification adjustments included in net income | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | 170 | (69) |
Less: Income tax expense (benefit) | 45 | 16 |
Other comprehensive loss | 125 | (85) |
Retirement Plan Liabilities Adjustment | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | (11) | (7) |
Less: Reclassification adjustments included in net income | (12) | (10) |
Total other comprehensive income (loss), before income tax expense (benefit) | 1 | 3 |
Less: Income tax expense (benefit) | 4 | 10 |
Other comprehensive loss | (3) | (7) |
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 | (1) | 3 |
Less: Reclassification adjustments included in net income | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | (1) | 3 |
Less: Income tax expense (benefit) | 0 | 0 |
Other comprehensive loss | $ (1) | $ 3 |
EQUITY (Details - Reclassificat
EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | $ 377 | $ 204 |
Income from continuing operations before income tax expense | 4,728 | 2,558 |
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 | 377 | 204 |
Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses were taken | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | (2) | 0 |
Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses were taken | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Investments | (2) | 0 |
Total | (2) | 0 |
Unrealized appreciation (depreciation) of all other investments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | 391 | 214 |
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 | 391 | 214 |
Total | 391 | 214 |
Change in retirement plan liabilities adjustment | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | (12) | (10) |
Change in retirement plan liabilities adjustment | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | (12) | (10) |
Prior-Service Credit | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | (1) | 0 |
Actuarial Gains (Losses) | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | $ (11) | $ (10) |
EQUITY (Details - Narratives)
EQUITY (Details - Narratives) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
EQUITY | ||
Payments for Repurchase of Stock | $ 362 | $ 500 |
Shares purchased | 8 | 12 |
Proceeds from warrant exercises | $ 92 |
EARNINGS PER COMMON SHARE (EP_3
EARNINGS PER COMMON SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator for EPS: | ||
Income from continuing operations | $ 3,930 | $ 1,654 |
Less: Net income (loss) from continuing operations attributable to noncontrolling interests | 54 | (95) |
Less: Preferred stock dividends | 7 | 7 |
Income attributable to AIG common shareholders from continuing operations | 3,869 | 1,742 |
Income from discontinued operations, net of income tax expense | 0 | 0 |
Net income attributable to AIG common shareholders | $ 3,869 | $ 1,742 |
Denominator for EPS: | ||
Weighted average common shares outstanding - basic | 868,105,069 | 874,213,630 |
Dilutive common shares | 8,164,855 | 4,652,583 |
Weighted average common shares outstanding - diluted | 876,269,924 | 878,866,213 |
Basic: | ||
Income from continuing operations | $ 4.45 | $ 1.99 |
Income from discontinued operations | 0 | 0 |
Income attributable to AIG common shareholders | 4.45 | 1.99 |
Diluted: | ||
Income (loss) from continuing operations | 4.41 | 1.98 |
Income from discontinued operations | 0 | 0 |
Income (loss) attributable to AIG common shareholders | $ 4.41 | $ 1.98 |
Number of shares excluded from diluted shares outstanding because the effect would have been anti-dilutive | 9,200,000 | 67,200,000 |
EMPLOYEE BENEFITS (Details - Co
EMPLOYEE BENEFITS (Details - Components of net periodic benefit cost) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pensions | ||
Components of net periodic benefit cost: | ||
Service cost | $ 6 | $ 6 |
Interest cost | 25 | 37 |
Expected return on assets | (67) | (65) |
Amortization of prior service cost (credit) | 1 | |
Amortization of net (gain) loss | 11 | 10 |
Net periodic benefit cost (credit) | (24) | (12) |
Pensions | U.S. | ||
Components of net periodic benefit cost: | ||
Service cost | 1 | 1 |
Interest cost | 22 | 34 |
Expected return on assets | (61) | (60) |
Amortization of prior service cost (credit) | 0 | |
Amortization of net (gain) loss | 9 | 8 |
Net periodic benefit cost (credit) | (29) | (17) |
Pensions | Non U.S. Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 5 | 5 |
Interest cost | 3 | 3 |
Expected return on assets | (6) | (5) |
Amortization of prior service cost (credit) | 1 | |
Amortization of net (gain) loss | 2 | 2 |
Net periodic benefit cost (credit) | 5 | 5 |
Postretirement Plans | ||
Components of net periodic benefit cost: | ||
Net benefit cost (credit) | $ 2 | $ 2 |
INCOME TAXES (Details - Narrati
INCOME TAXES (Details - Narrative) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Line Items] | |||
Effective tax rates on income from continuing operations (as a percent) | 16.90% | 35.30% | |
U.S. federal income tax at statutory rate (as a percent) | 21.00% | 21.00% | |
Valuation allowance related to certain tax attribute carryforward | $ 850 | ||
U.S. taxable income from life companies offset by those net operating loss carryforwards | 35.00% | ||
Unrecognized Tax Benefits | $ 1,200 | $ 2,300 | |
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate | 1,100 | 2,300 | |
Unrecognized tax benefits, if recognized would not affect the effective tax rate | 20 | 44 | |
Decrease in unrecognized tax benefits is reasonably possible in the next twelve months | 56 | ||
Unrecognized tax benefits, interest and penalties accrued | 103 | $ 286 | |
Unrecognized tax benefits, interest net of the federal (benefit) expense and penalties | (183) | $ 49 | |
Deferred tax asset valuation allowance | 700 | ||
Deferred tax asset valuation allowance recognized related to certain state, local and foreign jurisdictions | $ (14) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | May 06, 2021USD ($)$ / shares | Mar. 30, 2021 | Mar. 30, 2020 | May 07, 2021item | May 06, 2021USD ($)shares | Mar. 31, 2021USD ($)shares | Mar. 31, 2020shares |
Subsequent Event [Line Items] | |||||||
Date dividends declared | Feb. 16, 2021 | Feb. 12, 2020 | |||||
Date dividends paid | Mar. 30, 2021 | Mar. 30, 2020 | |||||
Date of record | Mar. 16, 2021 | Mar. 16, 2020 | |||||
Shares repurchased | shares | 8,032,171 | 12,000,000 | |||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 1,100,000,000 | ||||||
Three consolidated investment entities related to securitized portfolios of certain debt securities | |||||||
Subsequent Event [Line Items] | |||||||
Carrying value of senior notes | 100,000,000 | ||||||
Payments related to guarantees | 0 | ||||||
Consolidated investment entity related to securitized portfolios of certain debt securities | |||||||
Subsequent Event [Line Items] | |||||||
Number of investment entities | item | 1 | ||||||
Carrying value of senior notes | $ 25,000,000 | ||||||
Subsequent event | |||||||
Subsequent Event [Line Items] | |||||||
Dividends declared per common share | $ / shares | $ 0.32 | ||||||
Dividends declared per preferred share | $ / shares | $ 365.625 | ||||||
Shares repurchased | shares | 1,000,000 | ||||||
Aggregate purchase price of repurchased shares | $ 65,000,000 | ||||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 1,100,000,000 | $ 1,100,000,000 | |||||
Subsequent event | Disposed of by Means Other than Sale | |||||||
Subsequent Event [Line Items] | |||||||
Number of investment entities | item | 3 | ||||||
Subsequent event | Common Stock | |||||||
Subsequent Event [Line Items] | |||||||
Date dividends declared | May 6, 2021 | ||||||
Date dividends paid | Jun. 29, 2021 | ||||||
Date of record | Jun. 15, 2021 | ||||||
Subsequent event | Preferred Stock | |||||||
Subsequent Event [Line Items] | |||||||
Date dividends declared | May 6, 2021 | ||||||
Date dividends paid | Jun. 15, 2021 | ||||||
Date of record | May 31, 2021 |