Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Accounting Standards Update and Change in Accounting Principle

The following table presents the impacts in connection with the adoption of LDTI on January 1, 2021 as well as cross references to the applicable notes herein for additional information:

	Pre-Adoption, December 31, 2020	Cumulative Effect Adjustment as of January 1, 2021	Updated Balances Post Adoption of LDTI
(in millions)
Reinsurance assets - Fortitude Re, net of allowance for credit losses and disputes(a)	34,578	7,666	42,244
Reinsurance assets - other, net of allowance for credit losses and disputes(a)	38,963	469	39,432
Deferred income taxes	12,624	339	12,963
Deferred policy acquisition costs(b)	9,805	3,150	12,955
Market risk benefit assets(c)	—	338	338
Other assets, net of allowance for credit losses(d)	13,122	398	13,520
Total assets	586,481	12,360	598,841
Future policy benefits for life and accident and health insurance contracts(e)	56,878	10,486	67,364
Policyholder contract deposits(e)	154,470	(6,247)	148,223
Market risk benefit liabilities(c)	—	8,739	8,739
Other policyholder funds(f)	3,548	248	3,796
Other liabilities(g)	27,122	398	27,520
Total liabilities	519,282	13,624	532,906
Retained earnings	15,504	933	16,437
Accumulated other comprehensive income (loss)	13,511	(2,197)	11,314
Total AIG Shareholders' equity	66,362	(1,264)	65,098
Total equity	67,199	(1,264)	65,935
Total liabilities and equity	586,481	12,360	598,841

(a)For additional information on the transition impacts associated with LDTI, see Note 7.

(b)For additional information on the transition impacts associated with LDTI, see Note 8.

(c)For additional information on the transition impacts associated with LDTI, see Note 12.

(d)Other assets include deferred sales inducement assets. For additional information on the transition impacts associated with LDTI, see Note 8.

(e)For additional information on the transition impacts associated with LDTI, see Note 11.

(f)Other policyholder funds include Unearned Revenue Reserve (URR). For additional information on the transition impacts associated with LDTI, see Note 11.

(g)Other liabilities include deferred cost of reinsurance liabilities. For additional information on the transition impacts associated with LDTI, see Note 7.

The following table presents the impacts in connection with the adoption of LDTI on January 1, 2021 on our previously reported Condensed Consolidated Balance Sheets as of December 31, 2022:

	As Previously Reported	Effect of Change	Updated Balances Post Adoption of LDTI
(in millions)
Reinsurance assets - Fortitude Re, net of allowance for credit losses and disputes	32,159	(1,408)	30,751
Reinsurance assets - other, net of allowance for credit losses and disputes	39,434	(463)	38,971
Deferred income taxes	15,144	(340)	14,804
Deferred policy acquisition costs	15,518	(2,661)	12,857
Market risk benefit assets	—	796	796
Other assets, net of allowance for credit losses	12,714	(330)	12,384
Total assets	526,634	(4,406)	522,228
Future policy benefits for life and accident and health insurance contracts	59,223	(7,309)	51,914
Policyholder contract deposits	158,891	(2,907)	155,984
Market risk benefit liabilities	—	4,736	4,736
Other policyholder funds	3,909	(446)	3,463
Other liabilities	26,456	301	26,757
Total liabilities	484,399	(5,625)	478,774
Additional paid-in capital	80,284	(369)	79,915
Retained earnings	33,032	1,861	34,893
Accumulated other comprehensive income (loss)	(22,092)	(524)	(22,616)
Total AIG Shareholders' equity	40,002	968	40,970
Non-redeemable noncontrolling interests	2,233	251	2,484
Total equity	42,235	1,219	43,454
Total liabilities and equity	526,634	(4,406)	522,228

The following table presents the impacts in connection with the adoption of LDTI on January 1, 2021 on our previously reported Condensed Consolidated Statements of Income (Loss):

Three Months Ended March 31, 2022		As Previously Reported		Effect of Change		Updated Balances Post Adoption of LDTI
(in millions, except per common share data)
Revenues:
Premiums	$	7,110	$	10	$	7,120
Policy fees		764		(34)		730
Total net realized gains (losses)		4,419		(840)		3,579
Total revenues		15,808		(864)		14,944
Benefits, losses and expenses:
Policyholder benefits and losses incurred		5,255		(195)		5,060
Change in the fair value of market risk benefits, net		—		(233)		(233)
Interest credited to policyholder account balances		877		2		879
Amortization of deferred acquisition costs		1,437		(300)		1,137
General operating and other expenses		2,181		(17)		2,164
Total benefits, losses and expenses		9,973		(743)		9,230
Income (loss) from continuing operations before income tax expense (benefit)		5,835		(121)		5,714
Income tax expense (benefit)		1,179		(25)		1,154
Income (loss) from continuing operations		4,656		(96)		4,560
Net income (loss)		4,656		(96)		4,560
Net income (loss) from continuing operations attributable to noncontrolling interests		396		(9)		387
Net income (loss) attributable to AIG		4,260		(87)		4,173
Net income (loss) attributable to AIG common shareholders		4,253		(87)		4,166
Income (loss) per common share attributable to AIG common shareholders:
Common stock - Basic		5.21		(0.11)		5.10
Common stock - Diluted		5.15		(0.11)		5.04

The following table presents the impacts in connection with the adoption of LDTI on January 1, 2021 on our previously reported Condensed Consolidated Statements of Comprehensive Income (Loss):

Three Months Ended March 31, 2022		As Previously Reported		Effect of Change		Updated Balances Post Adoption of LDTI
(in millions)
Net income	$	4,656	$	(96)	$	4,560
Other comprehensive income (loss), net of tax
Change in unrealized appreciation (depreciation) of all other investments		(13,607)		(2,534)		(16,141)
Change in fair value of market risk benefits related to our own credit risk		—		782		782
Change in the discount rates used to measure traditional and limited payment long-duration insurance contracts		—		2,290		2,290
Other comprehensive income (loss)		(13,648)		537		(13,111)
Comprehensive income (loss)		(8,992)		441		(8,551)
Comprehensive income (loss) attributable to noncontrolling interests		(665)		40		(625)
Comprehensive income (loss) attributable to AIG		(8,327)		401		(7,926)

The following table presents the impacts in connection with the adoption of LDTI on January 1, 2021 on our previously reported Condensed Consolidated Statements of Cash Flows:

Three Months Ended March 31, 2022		As Previously Reported		Effect of Change	Updated Balances Post Adoption of LDTI
(in millions)
Cash flows from operating activities:
Net income	$	4,656	$	(96)	$	4,560
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized gains in earnings - net		(2,006)		1,133		(873)
Change in the fair value of market risk benefits in earnings, net		—		(496)		(496)
Depreciation and other amortization		1,447		(313)		1,134
Changes in operating assets and liabilities:
Insurance reserves		1,734		(478)		1,256
Premiums and other receivables and payables - net		(4,164)		(2)		(4,166)
Reinsurance assets, net		(1,223)		416		(807)
Capitalization of deferred policy acquisition costs		(1,386)		(16)		(1,402)
Current and deferred income taxes - net		1,123		(25)		1,098
Other, net		(158)		(141)		(299)
Total adjustments		(4,599)		78		(4,521)
Net cash provided by operating activities		57		(18)		39
Cash flows from financing activities:
Policyholder contract deposits		6,392		18		6,410
Net cash used in financing activities		(595)		18		(577)