Segment Information (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Reconciliation of Net Income (Loss) Attributable to AGL

to Adjusted Operating Income (Loss)

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(in millions)
Net income (loss) attributable to AGL	$	183		$	142		$	128		$	196
Less pre-tax adjustments:
Realized gains (losses) on investments	4			8			(1		)	(4		)
Non-credit impairment unrealized fair value gains (losses) on credit derivatives	97			(12		)	9			(40		)
Fair value gains (losses) on CCS	(25		)	19			23			10
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	2			(12		)	(55		)	(3		)
Total pre-tax adjustments	78			3			(24		)	(37		)
Less tax effect on pre-tax adjustments	(14		)	(2		)	—			6
Adjusted operating income (loss)	$	119		$	141		$	152		$	227

The following tables present the Company's operations by operating segment. The information for the prior year has been conformed to the new segment presentation.

Segment Information

	Second Quarter 2020
	Insurance		Asset Management			Corporate			Other			Total
	(in millions)
Third-party revenues	$	244	$	12		$	—		$	38		$	294
Intersegment revenues	2		1			—			(3		)	—
Total revenues	246		13			—			35			294
Total expenses	90		24			32			4			150
Income (loss) before income taxes and equity in net earnings of investees	156		(11		)	(32		)	31			144
Equity in net earnings of investees	26		—			—			(26		)	—
Adjusted operating income (loss) before income taxes	182		(11		)	(32		)	5			144
Provision (benefit) for income taxes	28		(2		)	(6		)	—			20
Noncontrolling interests	—		—			—			5			5
Adjusted operating income (loss)	$	154	$	(9	)	$	(26	)	$	—		$	119
Supplemental income statement information
Net investment income	$	82	$	—		$	—		$	(4	)	$	78
Interest expense	—		—			23			(2		)	21
Non-cash compensation and operating expenses (1)	9		6			—			—			15

	Second Quarter 2019
	Insurance		Asset Management		Corporate			Other			Total
	(in millions)
Third-party revenues	$	241	$	—	$	1		$	21		$	263
Intersegment revenues	—		—		—			—			—
Total revenues	241		—		1			21			263
Total expenses	40		—		31			14			85
Income (loss) before income taxes and equity in net earnings of investees	201		—		(30		)	7			178
Equity in net earnings of investees	1		—		—			—			1
Adjusted operating income (loss) before income taxes	202		—		(30		)	7			179
Provision (benefit) for income taxes	41		—		(4		)	1			38
Noncontrolling interests	—		—		—			—			—
Adjusted operating income (loss)	$	161	$	—	$	(26	)	$	6		$	141
Supplemental income statement information
Net investment income	$	110	$	—	$	1		$	(1	)	$	110
Interest expense	—		—		22			—			22
Non-cash compensation and operating expenses (1)	9		—		2			—			11

	Six Months Ended June 30, 2020
	Insurance		Asset Management			Corporate			Other			Total
	(in millions)
Third-party revenues	$	437	$	28		$	(4	)	$	23		$	484
Intersegment revenues	5		2			—			(7		)	—
Total revenues	442		30			(4		)	16			484
Total expenses	174		52			67			3			296
Income (loss) before income taxes and equity in net earnings of investees	268		(22		)	(71		)	13			188
Equity in net earnings of investees	17		—			(5		)	(16		)	(4		)
Adjusted operating income (loss) before income taxes	285		(22		)	(76		)	(3		)	184
Provision (benefit) for income taxes	46		(4		)	(11		)	(1		)	30
Noncontrolling interests	—		—			—			2			2
Adjusted operating income (loss)	$	239	$	(18	)	$	(65	)	$	(4	)	$	152
Supplemental income statement information
Net investment income	$	165	$	—		$	1		$	(8	)	$	158
Interest expense	—		—			48			(5		)	43
Non-cash compensation and operating expenses (1)	18		9			3			—			30

	Six Months Ended June 30, 2019
	Insurance		Asset Management		Corporate			Other			Total
	(in millions)
Third-party revenues	$	474	$	—	$	1		$	22		$	497
Intersegment revenues	1		—		—			(1		)	—
Total revenues	475		—		1			21			497
Total expenses	147		—		62			14			223
Income (loss) before income taxes and equity in net earnings of investees	328		—		(61		)	7			274
Equity in net earnings of investees	2		—		1			—			3
Adjusted operating income (loss) before income taxes	330		—		(60		)	7			277
Provision (benefit) for income taxes	58		—		(9		)	1			50
Noncontrolling interests	—		—		—			—			—
Adjusted operating income (loss)	$	272	$	—	$	(51	)	$	6		$	227
Supplemental income statement information
Net investment income	$	209	$	—	$	2		$	(3	)	$	208
Interest expense	—		—		46			(1		)	45
Non-cash compensation and operating expenses (1)	20		—		3			—			23

_____________________

(1)

Consists of amortization of deferred acquisition costs and intangible assets, depreciation and share-based compensation

The following table reconciles the Company's total consolidated revenues and expenses to segment revenues and expenses:

Reconciliation of Segment Revenues and Expenses

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	(in millions)
Revenues
Total consolidated revenues	$	372		$	266		$	468		$	461
Less: Realized gains (losses) on investments	4			8			(1		)	(4		)
Less: Non-credit impairment unrealized fair value gains (losses) on credit derivatives	97			(12		)	9			(40		)
Less: Fair value gains (losses) on CCS	(25		)	19			23			10
Less: Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	2			(12		)	(55		)	(3		)
Plus: Credit derivative impairment (recoveries) (1)	—			—			(8		)	(1		)
Total segment revenues	$	294		$	263		$	484		$	497
Expenses
Total consolidated expenses	$	150		$	85		$	304		$	224
Plus: Credit derivative impairment (recoveries) (1)	—			—			(8		)	(1		)
Total segment expenses	$	150		$	85		$	296		$	223

_____________________

(1)

Credit derivative impairment (recoveries) are included in "Net change in fair value of credit derivatives" in the Company's condensed consolidated statements of operations.

Revenue from External Customers by Geographic Areas

Revenue by Country of Domicile

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
	(in millions)
U.S.	$	243	$	212	$	393	$	394
Bermuda	38		46		72		90
U.K. and other	13		5		19		13
Total	$	294	$	263	$	484	$	497