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Segment Information
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
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.
•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 Property, Liability, Financial Lines, and Specialty.
–Personal Insurance – consists of Accident & Health and Personal Lines.
LIFE AND RETIREMENT
Life and Retirement business is presented as four operating segments:
•Individual Retirement – consists of fixed annuities, fixed index annuities and variable annuities.
•Group Retirement – consists of record-keeping, plan administrative and compliance services, financial planning and advisory solutions offered to employer-defined contribution plan participants, along with proprietary and non-proprietary annuities and advisory and brokerage products offered outside of plans.
•Life Insurance – primary products in the U.S. include term life and universal life insurance. International operations primarily 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).
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.
SEGMENT RESULTS
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 pre-tax income (loss), 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 June 30,20232022
(in millions)Adjusted
Revenues		Adjusted
Pre-tax
Income
(Loss)		Adjusted
Revenues		Adjusted
Pre-tax
Income
(Loss)
General Insurance
North America$3,195 $352 
(a)
$2,972 $406 
(a)
International3,302 242 
(a)
3,414 393 
(a)
Net investment income725 725 458 458 
Total General Insurance7,222 1,319 6,844 1,257 
Life and Retirement
Individual Retirement1,578 585 1,267 370 
Group Retirement690 201 672 180 
Life Insurance1,280 78 1,314 120 
Institutional Markets2,368 127 786 77 
Total Life and Retirement5,916 991 4,039 747 
Other Operations
Other Operations before consolidation and eliminations111 (423)207 (331)
Consolidation and eliminations(14)3 (136)(130)
Total Other Operations97 (420)71 (461)
Total13,235 1,890 10,954 1,543 
Reconciling items:
Changes in fair value of securities used to hedge guaranteed living benefits14 (3)13 10 
Change in the fair value of market risk benefits, net(b)
— 262 — 45 
Changes in benefit reserves related to net realized gains (losses)— (1)— 7 
Changes in the fair value of equity securities43 43 (30)(30)
Other income (expense) - net(12)— (9)— 
Loss on extinguishment of debt— — — (299)
Net investment income on Fortitude Re funds withheld assets291 291 188 188 
Net realized losses on Fortitude Re funds withheld assets(138)(138)(86)(86)
Net realized gains on Fortitude Re funds withheld embedded derivative180 180 2,776 2,776 
Net realized losses(c)
(395)(390)(147)(140)
Net gain (loss) on divestitures and other— 43 — (1)
Non-operating litigation reserves and settlements— (1)4 4 
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements— 18 — 144 
Net loss reserve discount charge— (16)— (14)
Pension expense related to a one-time lump sum payment to former employees— (67)— — 
Integration and transaction costs associated with acquiring or divesting businesses— (79)— (38)
Restructuring and other costs— (153)— (175)
Non-recurring costs related to regulatory or accounting changes— (12)— (9)
Revenues and pre-tax income$13,218 $1,867 $13,663 $3,925 
Six Months Ended June 30,20232022
(in millions)Adjusted
Revenues		Adjusted
Pre-tax
Income
(Loss)		Adjusted
Revenues		Adjusted
Pre-tax
Income
(Loss)
General Insurance
North America$6,175 $651 
(a)
$5,761 $662 
(a)
International6,581 445 
(a)
6,881 583 
(a)
Net investment income1,471 1,471 1,223 1,223 
Total General Insurance14,227 2,567 13,865 2,468 
Life and Retirement
Individual Retirement3,062 1,118 2,614 836 
Group Retirement1,373 388 1,406 421 
Life Insurance2,529 160 2,625 233 
Institutional Markets4,323 211 1,335 191 
Total Life and Retirement11,287 1,877 7,980 1,681 
Other Operations
Other Operations before consolidation and eliminations243 (857)501 (619)
AIG consolidation and eliminations(78)(54)(272)(263)
Total Other Operations165 (911)229 (882)
Total25,679 3,533 22,074 3,267 
Reconciling items:
Changes in fair value of securities used to hedge guaranteed living benefits27 (6)27 23 
Change in the fair value of market risk benefits, net(b)
— 66 — 278 
Changes in benefit reserves related to net realized gains (losses)— 5 — 9 
Changes in the fair value of equity securities94 94 (57)(57)
Other income (expense) - net(19)— (16)— 
Loss on extinguishment of debt— — — (299)
Net investment income on Fortitude Re funds withheld assets737 737 479 479 
Net realized gains (losses) on Fortitude Re funds withheld assets(169)(169)(226)(226)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative(985)(985)6,094 6,094 
Net realized gains (losses)(c)
(1,167)(1,156)194 209 
Net gain (loss) on divestitures and other— 41 — 39 
Non-operating litigation reserves and settlements1 — 38 38 
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements— 37 — 144 
Net loss reserve discount benefit (charge)— (80)— 6 
Pension expense related to a one-time lump sum payment to former employees— (67)— — 
Integration and transaction costs associated with acquiring or divesting businesses— (131)— (84)
Restructuring and other costs— (270)— (268)
Non-recurring costs related to regulatory or accounting changes— (25)— (13)
Net impact from elimination of international reporting lag(d)
4 12 — — 
Revenues and pre-tax income (loss)$24,202 $1,636 $28,607 $9,639 
(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 realized gains and losses on certain derivative instruments used for non-qualifying (economic) hedging.
(c)Includes all net realized 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).
(d)See Note 1.