XML 62 R39.htm IDEA: XBRL DOCUMENT v3.22.4
Investments (Tables)
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Schedule of Amortized Cost and Fair Value of Available For Sale Securities
The following table presents the amortized cost and fair value of our available for sale securities:
(in millions)
Amortized
Cost
Allowance
for Credit
Losses(a)
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
December 31, 2022
Bonds available for sale:
U.S. government and government sponsored entities$7,094 $— $21 $(496)$6,619 
Obligations of states, municipalities and political subdivisions13,195 — 99 (1,195)12,099 
Non-U.S. governments15,133 (6)91 (1,733)13,485 
Corporate debt160,242 (132)1,152 (23,423)137,839 
Mortgage-backed, asset-backed and collateralized:
RMBS19,584 (37)807 (1,537)18,817 
CMBS15,610 (11)14 (1,420)14,193 
CLO/ABS25,135 — 38 (2,069)23,104 
Total mortgage-backed, asset-backed and collateralized60,329 (48)859 (5,026)56,114 
Total bonds available for sale(b)
$255,993 $(186)$2,222 $(31,873)$226,156 
December 31, 2021
Bonds available for sale:
U.S. government and government sponsored entities$7,874 $— $347 $(27)$8,194 
Obligations of states, municipalities and political subdivisions12,760 — 1,782 (15)14,527 
Non-U.S. governments15,858 — 719 (247)16,330 
Corporate debt163,064 (89)13,892 (1,259)175,608 
Mortgage-backed, asset-backed and collateralized:
RMBS25,027 (9)2,422 (153)27,287 
CMBS15,333 — 555 (79)15,809 
CLO/ABS19,294 — 276 (123)19,447 
Total mortgage-backed, asset-backed and collateralized59,654 (9)3,253 (355)62,543 
Total bonds available for sale(b)
$259,210 $(98)$19,993 $(1,903)$277,202 
(a)Represents the allowance for credit losses that has been recognized. Changes in the allowance for credit losses are recorded through Net realized gains (losses) and are not recognized in Other comprehensive income (loss).
(b)At December 31, 2022 and 2021, the fair value of bonds available for sale held by us that were below investment grade or not rated totaled $22.3 billion or 10 percent and $27.0 billion or 10 percent, respectively.
Schedule of Unrealized Loss on Investments
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 Months12 Months or MoreTotal
(in millions)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
December 31, 2022
Bonds available for sale:
U.S. government and government sponsored entities$3,493 $368 $1,816 $128 $5,309 $496 
Obligations of states, municipalities and political subdivisions8,697 1,180 73 15 8,770 1,195 
Non-U.S. governments10,702 1,526 779 191 11,481 1,717 
Corporate debt110,683 19,756 13,778 3,609 124,461 23,365 
RMBS10,953 1,293 1,005 182 11,958 1,475 
CMBS11,620 1,094 1,728 326 13,348 1,420 
CLO/ABS16,852 1,388 4,307 681 21,159 2,069 
Total bonds available for sale$173,000 $26,605 $23,486 $5,132 $196,486 $31,737 
Less than 12 Months12 Months or MoreTotal
(in millions)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
December 31, 2021
Bonds available for sale:
U.S. government and government sponsored entities$3,696 $14 $447 $13 $4,143 $27 
Obligations of states, municipalities and political subdivisions714 11 57 4 771 15 
Non-U.S. governments4,644 115 1,324 132 5,968 247 
Corporate debt31,914 720 8,819 467 40,733 1,187 
RMBS5,362 102 1,154 46 6,516 148 
CMBS3,980 63 153 16 4,133 79 
CLO/ABS8,263 112 339 11 8,602 123 
Total bonds available for sale$58,573 $1,137 $12,293 $689 $70,866 $1,826 
Investments Classified by Contractual Maturity Date
The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity:
Total Fixed Maturity Securities
Available for Sale
(in millions)Amortized Cost,
Net of Allowance		Fair Value
December 31, 2022
Due in one year or less$9,150 $9,010 
Due after one year through five years50,935 48,517 
Due after five years through ten years44,213 39,449 
Due after ten years91,228 73,066 
Mortgage-backed, asset-backed and collateralized60,281 56,114 
Total$255,807 $226,156 
Realized Gain (Loss) on Investments
The following table presents the gross realized gains and gross realized losses from sales or maturities of our available for sale securities:
Years Ended December 31,
202220212020
(in millions)Gross
Realized
Gains		Gross
Realized
Losses		Gross
Realized
Gains		Gross
Realized
Losses		Gross
Realized
Gains		Gross
Realized
Losses
Fixed maturity securities$446$1,628$1,369$441$1,824$810
The following table presents the components of Net realized gains (losses):
Years Ended December 31,202220212020
(in millions)Excluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		TotalExcluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		TotalExcluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		Total
Sales of fixed maturity securities$(871)$(311)$(1,182)$211 $717 $928 $307 $707 $1,014 
Intent to sell(66)— (66)— — — (3)— (3)
Change in allowance for credit losses on fixed maturity securities(184)(32)(216)19 7 26 (270)(10)(280)
Change in allowance for credit losses on loans(55)(47)(102)163 9 172 (105)2 (103)
Foreign exchange transactions(17)(5)(22)16 (5)11 365 13 378 
Variable annuity embedded derivatives, net of related hedges1,221 — 1,221 (39)— (39)166 — 166 
All other derivatives and hedge accounting1,814 (134)1,680 179 28 207 (672)(249)(921)
Sales of alternative investments and real estate investments193 43 236 988 237 1,225 143 — 143 
Other(39)— (39)214 10 224 13 — 13 
Net realized gains (losses) – excluding Fortitude Re funds withheld embedded derivative 1,996 (486)1,510 1,751 1,003 2,754 (56)463 407 
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative— 7,481 7,481 — (603)(603)— (2,645)(2,645)
Net realized gains (losses)$1,996 $6,995 $8,991 $1,751 $400 $2,151 $(56)$(2,182)$(2,238)
Debt Securities, Trading, and Equity Securities, FV-NI
The following table presents the fair value of fixed maturity securities measured at fair value based on our election of the fair value option, which are reported in the other bond securities caption in the financial statements, and equity securities measured at fair value:
(in millions)December 31, 2022December 31, 2021
Fair
Value		Percent
of Total		Fair
Value		Percent
of Total
Fixed maturity securities:
U.S. government and government sponsored entities$— — %$1,750 25 %
Obligations of states, municipalities and political subdivisions111 2 97 1 
Non-U.S. governments66 1 76 1 
Corporate debt2,392 47 1,050 15 
Mortgage-backed, asset-backed and collateralized:
RMBS286 6 411 6 
CMBS331 7 315 4 
CLO/ABS and other collateralized1,299 26 2,579 37 
Total mortgage-backed, asset-backed and collateralized
1,916 39 3,305 47 
Total fixed maturity securities4,485 89 6,278 89 
Equity securities575 11 739 11 
Total$5,060 100 %$7,017 100 %
Schedule of Other Invested Assets
The following table summarizes the carrying amounts of other invested assets:
(in millions)December 31, 2022December 31, 2021
Alternative investments(a)(b)
$11,809 $10,951 
Investment real estate(c)
2,153 2,727 
All other investments(d)
1,991 1,990 
Total$15,953 $15,668 
(a)At December 31, 2022, included hedge funds of $1.4 billion, and private equity funds of $10.4 billion. At December 31, 2021, included hedge funds of $2.0 billion, and private equity funds of $8.9 billion.
(b)At December 31, 2022, approximately 66 percent of our hedge fund portfolio is available for redemption in 2023. The remaining 34 percent will be available for redemption between 2024 and 2028.
(c)Represents values net of accumulated depreciation. At December 31, 2022 and 2021, the accumulated depreciation was $786 million and $778 million, respectively.
(d)Includes AIG's ownership interest in Fortitude Group Holdings, LLC (FRL), which is recorded using the measurement alternative for equity securities. Our investment in FRL totaled $156 million and $100 million at December 31, 2022 and 2021, respectively.
Equity Method Investments Summarized Financial Information
The following is the aggregated summarized financial information of our equity method investees, including those for which the fair value option has been elected:
Years Ended December 31,
(in millions)202220212020
Operating results:
Total revenues$28,500 $31,560 $13,090 
Total expenses(2,789)(2,241)(2,897)
Net income$25,711 $29,319 $10,193 
At December 31,
(in millions)20222021
Balance sheet:
Total assets$134,435 $105,837 
Total liabilities$(14,701)$(12,779)
The following table presents the carrying amount and ownership percentage of equity method investments at December 31, 2022 and 2021:
20222021
(in millions)Carrying
Value		Ownership
Percentage		Carrying
Value		Ownership
Percentage
Equity method investments$5,963 Various$5,145 Various
Investment Income The following table presents the components of Net investment income:
Years Ended December 31,202220212020
(in millions)Excluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		TotalExcluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		TotalExcluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		Total
Available for sale fixed maturity securities, including short-term investments$8,664 $1,067 $9,731 $8,583 $1,468 $10,051 $9,508 $851 $10,359 
Other fixed maturity securities(a)
(363)(459)(822)(19)7 (12)540 13 553 
Equity securities(53)— (53)(237)— (237)200 — 200 
Interest on mortgage and other loans1,959 203 2,162 1,745 207 1,952 1,883 106 1,989 
Alternative investments(b)
819 170 989 2,579 321 2,900 913 99 1,012 
Real estate57 — 57 225 — 225 195 — 195 
Other investments(c)
359 (5)354 250 5 255 (120)1 (119)
Total investment income11,442 976 12,418 13,126 2,008 15,134 13,119 1,070 14,189 
Investment expenses618 33 651 485 37 522 541 17 558 
Net investment income$10,824 $943 $11,767 $12,641 $1,971 $14,612 $12,578 $1,053 $13,631 
(a)Included in the years ended December 31, 2022, 2021 and 2020 were income (loss) of $(195) million, $(49) million and $195 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 years ended December 31, 2022, 2021 and 2020 were income (loss) of $186 million, $65 million and $(162) million, respectively, related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above.
Unrealized Gain (Loss) on Investments
The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments:
Years Ended December 31,
(in millions)20222021
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities$(47,741)$(9,255)
Other investments(25)— 
Total increase (decrease) in unrealized appreciation (depreciation) of investments$(47,766)$(9,255)
The following table summarizes the unrealized gains and losses recognized in Net investment income during the reporting period on equity securities and other investments still held at the reporting date:
Years Ended December 31,20222021
(in millions)EquitiesOther
Invested
Assets		TotalEquitiesOther
Invested
Assets		Total
Net gains (losses) recognized during the period on equity securities and other investments$(53)$355 $302 $(237)$2,028 $1,791 
Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period96 (23)73 (180)114 (66)
Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date$(149)$378 $229 $(57)$1,914 $1,857 
Debt Securities, Available-for-sale, Allowance for Credit Loss 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:
Years Ended December 31,202220212020
(in millions)StructuredNon-
Structured		TotalStructuredNon-
Structured		TotalStructuredNon-
Structured		Total
Balance, beginning of year*$8 $90 $98 $17 $169 $186 $7 $— $7 
Additions:
Securities for which allowance for credit losses were not previously recorded69 238 307 9 56 65 38 290 328 
Purchases of available for sale debt securities accounted for as purchased credit deteriorated assets— — — — — — 26 — 26 
Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets— — — — — — 1 — 1 
Reductions:
Securities sold during the period(3)(92)(95)(4)(29)(33)(5)(26)(31)
Addition to (release of) 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 of amortized cost basis(27)(64)(91)(14)(77)(91)(50)33 (17)
Write-offs charged against the allowance— (30)(30)— (29)(29)— (128)(128)
Other(1)(2)(3)— — — — — — 
Balance, end of year$46 $140 $186 $8 $90 $98 $17 $169 $186 
*The beginning balance incorporates the Day 1 gross up on PCD assets held as of January 1, 2020.
Reconciliation of Purchase Price to Unpaid Principal Balance on Acquisition Date of PCD Securities
The following table presents a reconciliation of the purchase price to the unpaid principal balance at the acquisition date of the PCD securities that were purchased with credit deterioration:
Year Ended December 31,
(in millions)2020
Unpaid principal balance$644
Allowance for expected credit losses at acquisition(26)
Purchase (discount) premium(149)
Purchase price$469
Schedule of Financial Instruments Owned and Pledged as Collateral
The following table presents the fair value of securities pledged to counterparties under secured financing transactions, including repurchase and securities lending agreements:
(in millions)December 31, 2022December 31, 2021
Fixed maturity securities available for sale$2,968$3,583
The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity:
Remaining Contractual Maturity of the Agreements
(in millions)Overnight
and
Continuous		up to
30 days		31 - 90
days		91 - 364
days		365 days
or greater		Total
December 31, 2022
Bonds available for sale:
U.S. government and government sponsored entities$— $— $— $— $— $— 
Non-U.S. governments— 20 — — — 20 
Corporate debt— 2,371 577 — — 2,948 
Total$— $2,391 $577 $— $— $2,968 
December 31, 2021
Bonds available for sale:
Non-U.S. governments$48 $— $— $— $— $48 
Corporate debt128 61 22 — — 211 
Total$176 $61 $22 $— $— $259 
The following table presents the fair value of securities pledged under our securities lending agreements by collateral type and by remaining contractual maturity:
Remaining Contractual Maturity of the Agreements
(in millions)Overnight
and
Continuous		up to
30 days		31 - 90
days		91 - 364
days		365 days
or greater		Total
December 31, 2022
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$— $— $— $— $— $— 
Non-U.S. governments— — — — — — 
Total$— $— $— $— $— $— 
December 31, 2021
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$—$—$106$—$—$106
Non-U.S. governments——43——43
Corporate debt—534 2,641 ——3,175 
Total$—$534 $2,790 $—$—$3,324
The following table presents information on the fair value of securities pledged to us under reverse repurchase agreements:
(in millions)December 31, 2022December 31, 2021
Securities collateral pledged to us$— $1,839