XML 39 R24.htm IDEA: XBRL DOCUMENT v3.23.1
Equity
 3 Months Ended
Mar. 31, 2023
Stockholders' Equity Note [Abstract]  
Equity
15. 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.
Common Stock
The following table presents a rollforward of outstanding shares:
Three Months Ended March 31, 2023
Common
Stock Issued		Treasury
Stock		Common Stock
Outstanding
(in millions)
Shares, beginning of year1,906.7 (1,172.6)734.1 
Shares issued— 4.6 4.6 
Shares repurchased— (11.1)(11.1)
Shares, end of period1,906.7 (1,179.1)727.6 
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.
For a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries, see Note 18 to the Consolidated Financial Statements in the 2022 Annual Report.
Repurchase of AIG Common Stock
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. Certain of our share repurchases have been and may from time to time be effected through the Securities Exchange Act of 1934, as amended (the Exchange Act) Rule 10b5-1 repurchase plans. On May 3, 2022, the Board of Directors authorized the repurchase of $6.5 billion of AIG Common Stock (inclusive of the approximately $1.5 billion of expected remaining authorization upon expiration of the then-current 10b5-1 Plan as of May 20, 2022).
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.
Pursuant to an Exchange Act Rule 10b5-1 repurchase plan from April 1, 2023 to April 28, 2023, we repurchased approximately 4 million shares of AIG Common Stock for an aggregate purchase price of approximately $200 million.
DIVIDENDS DECLARED
On May 4, 2023, our Board of Directors declared a cash dividend on AIG Common Stock of $0.36 per share, a 12.5 percent increase from prior quarterly dividends on AIG Common Stock, payable on June 30, 2023 to shareholders of record on June 16, 2023. On May 4, 2023, our Board of Directors declared a cash dividend on AIG’s Series A Preferred Stock of $365.625 per share, payable on June 15, 2023 to holders of record on May 31, 2023.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following table presents a rollforward of Accumulated other comprehensive income (loss):
(in millions)Unrealized
Appreciation
(Depreciation)
of Fixed Maturity
Securities on Which
Allowance for Credit
Losses Was Taken		Unrealized
Appreciation
(Depreciation)
of All Other
Investments		Change in
Fair Value
of Market
Risk Benefits
Related to
Our Own
Credit Risk		Change in the
discount rates
used to measure
traditional and
limited payment
long-duration
insurance contracts		Foreign
Currency
Translation
Adjustments		Retirement
Plan
Liabilities
Adjustment		Fair Value of
Liabilities
Under Fair
Value Option
Attributable
to Changes in
Own Credit Risk		Total
Balance, December 31, 2022, net of tax$(136)$(20,675)$(284)$2,459 $(3,056)$(924)$— $(22,616)
Change in unrealized appreciation (depreciation) of investments
9 4,996 — — — — — 5,005 
Change in other— 106 — — — — — 106 
Change in fair value of market risk benefits, net— — 95 — — — — 95 
Change in discount rates— — — (527)— — — (527)
Change in future policy benefits— (100)— — — — — (100)
Change in foreign currency translation adjustments— — — — (19)— — (19)
Change in net actuarial loss— — — — — 27 — 27 
Change in deferred tax asset (liability)(3)(750)(20)107 (9)1 — (674)
Total other comprehensive income (loss)6 4,252 75 (420)(28)28 — 3,913 
Noncontrolling interests4 706 17 (111)10 — — 626 
Balance, March 31, 2023, net of tax$(134)$(17,129)$(226)$2,150 $(3,094)$(896)$— $(19,329)
Balance, December 31, 2021, net of tax$(48)$12,125 $(1,496)$(2,167)$(2,446)$(903)$6 $5,071 
Change in unrealized appreciation (depreciation) of investments(57)(20,110)— — — — — (20,167)
Change in other— 15 — — — — — 15 
Change in fair value of market risk benefits, net— — 991 — — — — 991 
Change in discount rates— — — 2,883 — — — 2,883 
Change in future policy benefits— 795 — — — — — 795 
Change in foreign currency translation adjustments— — — — (3)— — (3)
Change in net actuarial loss— — — — — 11 — 11 
Change in prior service cost— — — — — 1 — 1 
Change in deferred tax asset (liability)12 3,159 (209)(593)(3)(3)— 2,363 
Total other comprehensive income (loss)(45)(16,141)782 2,290 (6)9 — (13,111)
Noncontrolling interests(5)(1,326)77 222 20 — — (1,012)
Balance, March 31, 2022, net of tax$(88)$(2,690)$(791)$(99)$(2,472)$(894)$6 $(7,028)
The following table presents the other comprehensive income (loss) reclassification adjustments for the three-month periods ended March 31, 2023 and 2022, respectively:
(in millions)Unrealized
Appreciation
(Depreciation)
of Fixed Maturity
Securities on Which
Allowance for Credit
Losses Was Taken		Unrealized
Appreciation
(Depreciation)
of All Other
Investments		Change in fair value of market risk benefits related to our own credit riskChange in the
discount rates
used to measure
traditional and
limited payment
long-duration
insurance contracts		Foreign
Currency
Translation
Adjustments		Retirement
Plan
Liabilities
Adjustment		Fair Value of
Liabilities
Under Fair
Value Option
Attributable
to Changes in
Own Credit Risk		Total
Three Months Ended March 31, 2023
Unrealized change arising during period$(7)$4,566 $95 $(527)$(19)$18 $— $4,126 
Less: Reclassification adjustments included in net income(16)(436)— — — (9)— (461)
Total other comprehensive income (loss), before of income tax expense (benefit)9 5,002 95 (527)(19)27 — 4,587 
Less: Income tax expense (benefit)3 750 20 (107)9 (1)— 674 
Total other comprehensive income (loss), net of income tax expense (benefit)$6 $4,252 $75 $(420)$(28)$28 $— $3,913 
Three Months Ended March 31, 2022
Unrealized change arising during period$(57)$(19,439)$991 $2,883 $(3)$4 $— $(15,621)
Less: Reclassification adjustments included in net income— (139)— — — (8)— (147)
Total other comprehensive income (loss), before income tax expense (benefit)(57)(19,300)991 2,883 (3)12 — (15,474)
Less: Income tax expense (benefit)(12)(3,159)209 593 3 3 — (2,363)
Total other comprehensive income (loss), net of income tax expense (benefit)$(45)$(16,141)$782 $2,290 $(6)$9 $— $(13,111)
The following table presents the effect of the reclassification of significant items out of AOCI on the respective line items in the Condensed Consolidated Statements of Income (Loss)(a):
Amount Reclassified from AOCIAffected Line Item in the
Three Months Ended March 31,Condensed Consolidated
(in millions)20232022Statements of Income (Loss)
Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken
Investments$(16)$— Net realized gains (losses)
Total(16)— 
Unrealized appreciation (depreciation) of all other investments
Investments(436)(139)Net realized gains (losses)
Total(436)(139)
Change in retirement plan liabilities adjustment
Prior-service credit(1)(1)
(b)
Actuarial losses(8)(7)
(b)
Total(9)(8)
Total reclassifications for the period$(461)$(147)
(a)The following items are not reclassified out of AOCI and included in the Condensed Consolidated Statements of Income (Loss) and thus have been excluded from the table: (a) Change in fair value of market risk benefits attributable to changes in our own credit risk (b) Change in the discount rates used to measure traditional and limited-payment long-duration insurance contracts, and (c) Fair value of liabilities under fair value option attributable to changes in own credit risk.
(b)These AOCI components are included in the computation of net periodic pension cost.