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Investments
 3 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investments
6. Investments
SECURITIES AVAILABLE FOR SALE
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(b)
Gross
Unrealized
Losses(b)
Fair
Value
March 31, 2024
Bonds available for sale:
U.S. government and government sponsored entities$6,157 $— $23 $(391)$5,789 
Obligations of states, municipalities and political subdivisions10,894 — 85 (886)10,093 
Non-U.S. governments13,310 — 109 (1,451)11,968 
Corporate debt153,436 (84)1,598 (19,132)135,818 
Mortgage-backed, asset-backed and collateralized:
RMBS21,841 (24)849 (1,245)21,421 
CMBS15,563 (17)68 (1,126)14,488 
CLO/ABS33,866 — 234 (1,190)32,910 
Total mortgage-backed, asset-backed and collateralized71,270 (41)1,151 (3,561)68,819 
Total bonds available for sale(c)
$255,067 $(125)$2,966 $(25,421)$232,487 
December 31, 2023
Bonds available for sale:
U.S. government and government sponsored entities$5,885 $— $58 $(327)$5,616 
Obligations of states, municipalities and political subdivisions11,387 — 118 (842)10,663 
Non-U.S. governments13,668 (3)137 (1,349)12,453 
Corporate debt154,674 (90)1,898 (18,050)138,432 
Mortgage-backed, asset-backed and collateralized:
RMBS20,875 (35)821 (1,217)20,444 
CMBS15,379 (34)46 (1,263)14,128 
CLO/ABS31,167 — 183 (1,353)29,997 
Total mortgage-backed, asset-backed and collateralized67,421 (69)1,050 (3,833)64,569 
Total bonds available for sale(c)
$253,035 $(162)$3,261 $(24,401)$231,733 
(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 OCI.
(b)At March 31, 2024, includes mark to market movement relating to embedded derivatives.
(c)At March 31, 2024 and December 31, 2023, the fair value of bonds available for sale held by us that were below investment grade or not rated totaled $16.9 billion or 7 percent and $17.1 billion or 7 percent, respectively.
Securities Available for Sale in a Loss Position for Which No Allowance for Credit Loss Has Been Recorded
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*
March 31, 2024
Bonds available for sale:
U.S. government and government sponsored entities$2,600 $33 $1,486 $358 $4,086 $391 
Obligations of states, municipalities and political subdivisions2,150 134 5,187 752 7,337 886 
Non-U.S. governments2,007 148 7,424 1,302 9,431 1,450 
Corporate debt16,567 2,141 91,020 16,952 107,587 19,093 
RMBS4,044 189 7,877 1,025 11,921 1,214 
CMBS1,678 70 8,664 1,050 10,342 1,120 
CLO/ABS6,593 154 12,577 1,036 19,170 1,190 
Total bonds available for sale$35,639 $2,869 $134,235 $22,475 $169,874 $25,344 
December 31, 2023
Bonds available for sale:
U.S. government and government sponsored entities$1,046 $12 $1,550 $315 $2,596 $327 
Obligations of states, municipalities and political subdivisions1,994 133 5,218 709 7,212 842 
Non-U.S. governments1,901 168 7,483 1,175 9,384 1,343 
Corporate debt15,483 1,936 93,649 16,076 109,132 18,012 
RMBS4,154 288 7,246 880 11,400 1,168 
CMBS2,864 219 8,192 1,027 11,056 1,246 
CLO/ABS6,965 202 13,436 1,151 20,401 1,353 
Total bonds available for sale$34,407 $2,958 $136,774 $21,333 $171,181 $24,291 
*At March 31, 2024, includes mark to market movement relating to embedded derivatives.
At March 31, 2024, we held 27,875 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 22,726 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). At December 31, 2023, we held 27,930 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 22,663 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). We did not recognize the unrealized losses in earnings on these fixed maturity securities at March 31, 2024 because it was determined that such losses were due to non-credit factors. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. For fixed maturity securities with significant declines, we performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, liquidity position, expected defaults, industry and sector analysis, forecasts and available market data.
Contractual Maturities of Fixed Maturity Securities Available for Sale
The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity:
March 31, 2024Total Fixed Maturity Securities
Available for Sale
(in millions)Amortized Cost,
Net of Allowance		Fair Value
Due in one year or less$8,347 $8,235 
Due after one year through five years47,710 46,259 
Due after five years through ten years39,506 36,657 
Due after ten years88,150 72,517 
Mortgage-backed, asset-backed and collateralized71,229 68,819 
Total$254,942 $232,487 
Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties.
The following table presents the gross realized gains and gross realized losses from sales or maturities of our available for sale securities:
Three Months Ended March 31,
20242023
(in millions)Gross
Realized
Gains		Gross
Realized
Losses		Gross
Realized
Gains		Gross
Realized
Losses
Fixed maturity securities$20$463$146$598
For the three months ended March 31, 2024 and 2023, the aggregate fair value of available for sale securities sold was $4.9 billion and $10.8 billion, respectively, which resulted in net realized gains (losses) of $(443) million and $(452) million, respectively. Included within the net realized gains (losses) are $(37) million and $(65) million of net realized gains (losses) for the three months ended March 31, 2024 and 2023, respectively, which relate to Fortitude Re funds withheld assets. These net realized gains (losses) are included in Net realized gains (losses) on Fortitude Re funds withheld assets.
OTHER SECURITIES MEASURED AT FAIR VALUE
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)March 31, 2024December 31, 2023
Fair
Value		Percent
of Total		Fair
Value		Percent
of Total
Fixed maturity securities:
Obligations of states, municipalities and political subdivisions$90 1 %$91 2 %
Non-U.S. governments39 1 37 1 
Corporate debt2,997 48 2,908 49 
Mortgage-backed, asset-backed and collateralized:
RMBS273 4 263 4 
CMBS283 5 261 4 
CLO/ABS and other collateralized1,721 28 1,681 28 
Total mortgage-backed, asset-backed and collateralized
2,277 37 2,205 36 
Total fixed maturity securities5,403 87 5,241 88 
Equity securities797 13 728 12 
Total$6,200 100 %$5,969 100 %
OTHER INVESTED ASSETS
The following table summarizes the carrying amounts of other invested assets:
(in millions)March 31, 2024December 31, 2023
Alternative investments(a)(b)
$11,195 $11,320 
Investment real estate(c)
2,159 2,237 
All other investments(d)
2,623 2,660 
Total$15,977 $16,217 
(a)At March 31, 2024, included hedge funds of $0.7 billion and private equity funds of $10.5 billion. At December 31, 2023, included hedge funds of $0.7 billion and private equity funds of $10.6 billion.
(b)The majority of our hedge fund investments are redeemable upon a single month or quarter’s notice, though redemption terms vary from single, immediate withdrawals, to withdrawals staggered up to six quarters. Some of the portfolio consists of illiquid run-off or “side-pocket” positions whose liquidation horizons are uncertain and likely beyond a year after submission of the redemption notice.
(c)Represents values net of accumulated depreciation. At March 31, 2024 and December 31, 2023, the accumulated depreciation was $834 million and $853 million, respectively.
(d)Includes AIG's ownership interest in Fortitude Group Holdings, LLC (FRL), and DaVinciRe Holdings Ltd, Class D (DVRH), which are recorded using the measurement alternative for equity securities. Our investment in FRL totaled $156 million and $156 million at March 31, 2024 and December 31, 2023, respectively. Our investment in DVRH totaled $300 million and $300 million at March 31, 2024 and December 31, 2023, respectively.
NET INVESTMENT INCOME
The following table presents the components of Net investment income:
Three Months Ended March 31,20242023
(in millions)Excluding 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$2,946 $216 $3,162 $2,546 $243 $2,789 
Other fixed maturity securities
9 71 80 12 123 135 
Equity securities99 — 99 51 — 51 
Interest on mortgage and other loans649 57 706 567 59 626 
Alternative investments(a)
8 33 41 76 31 107 
Real estate5 (7)(2)3 — 3 
Other investments
33 7 40 28 (1)27 
Total investment income3,749 377 4,126 3,283 455 3,738 
Investment expenses214 8 222 196 9 205 
Net investment income$3,535 $369 $3,904 $3,087 $446 $3,533 
(a)Included income from hedge funds, private equity funds and affordable housing partnerships. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag.
NET REALIZED GAINS AND LOSSES
The following table presents the components of Net realized gains (losses):
Three Months Ended March 31,20242023
(in millions)Excluding Fortitude
Re Funds
Withheld Assets		Fortitude Re
Funds Withheld
Assets		TotalExcluding Fortitude
Re Funds
Withheld Assets		Fortitude Re
Funds Withheld
Assets		Total
Sales of fixed maturity securities$(406)$(37)$(443)$(387)$(65)$(452)
Intent to sell(16)(32)(48)— — — 
Change in allowance for credit losses on fixed maturity securities(62)(6)(68)(16)— (16)
Change in allowance for credit losses on loans(23)1 (22)(42)(21)(63)
Foreign exchange transactions14 (14)— 114 16 130 
Index-linked interest credited embedded derivatives, net of related hedges90 — 90 (178)— (178)
All other derivatives and hedge accounting*123 (90)33 (217)38 (179)
Sales of alternative investments and real estate investments30 (1)29 4 1 5 
Other(8)— (8)9 — 9 
Net realized gains (losses) – excluding Fortitude Re funds withheld embedded derivative (258)(179)(437)(713)(31)(744)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative— 13 13 — (1,165)(1,165)
Net realized gains (losses)$(258)$(166)$(424)$(713)$(1,196)$(1,909)
*Derivative activity related to hedging MRBs is recorded in Change in the fair value of MRBs, net. For additional disclosures about MRBs, see Note 13.
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS
The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments:
Three Months Ended March 31,
(in millions)20242023
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities$(1,214)$5,005 
Total increase (decrease) in unrealized appreciation (depreciation) of investments*$(1,214)$5,005 
*Excludes net unrealized gains and losses attributable to businesses held for sale at March 31, 2024.
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:
Three Months Ended March 31,20242023
(in millions)EquitiesOther
Invested
Assets		TotalEquitiesOther
Invested
Assets		Total
Net gains recognized during the period on equity securities and other investments$99 $153 $252 $51 $110 $161 
Less: Net gains recognized during the period on equity securities and other investments sold during the period67 2 69 153 1 154 
Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date$32 $151 $183 $(102)$109 $7 
EVALUATING INVESTMENTS FOR AN ALLOWANCE FOR CREDIT LOSSES AND IMPAIRMENTS
For a discussion of our policy for evaluating investments for an allowance for credit losses, see Note 6 to the Consolidated Financial Statements in the 2023 Annual Report.
Credit Impairments
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:
Three Months Ended March 31,20242023
(in millions)StructuredNon-
Structured		TotalStructuredNon-
Structured		Total
Balance, beginning of year$69 $93 $162 $46 $140 $186 
Additions:
Securities for which allowance for credit losses were not previously recorded13 20 33 2 22 24 
Reductions:
Securities sold during the period(15)(8)(23)(1)(10)(11)
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 basis12 23 35 (4)(4)(8)
Write-offs charged against the allowance(39)(44)(83)— (50)(50)
Other1 — 1 2 (7)(5)
Balance, end of period$41 $84 $125 $45 $91 $136 
Purchased Credit Deteriorated Securities
We purchase certain RMBS securities that have experienced more-than-insignificant deterioration in credit quality since origination. These are referred to as PCD assets. At the time of purchase an allowance is recognized for these PCD assets by adding it to the purchase price to arrive at the initial amortized cost. There is no credit loss expense recognized upon acquisition of a PCD asset. When determining the initial allowance for credit losses, management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs:
•Current delinquency rates;
•Expected default rates and the timing of such defaults;
•Loss severity and the timing of any recovery; and
•Expected prepayment speeds.
Subsequent to the acquisition date, the PCD assets follow the same accounting as other structured securities that are not high credit quality.
We did not purchase securities with more than insignificant credit deterioration since their origination during the three months ended March 31, 2024 and 2023.
PLEDGED INVESTMENTS
Secured Financing and Similar Arrangements
We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. Our secured financing transactions also include those that involve the transfer of securities to financial institutions in exchange for cash (securities lending agreements). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts plus accrued interest, other than those that are accounted for at fair value.
Pledged collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the amounts borrowed during the life of the transactions. In the event of a decline in the fair value of the pledged collateral under these secured financing transactions, we may be required to transfer cash or additional securities as pledged collateral under these agreements. At the termination of the transactions, we and our counterparties are obligated to return the amounts borrowed and the securities transferred, respectively.
The following table presents the fair value of securities pledged to counterparties under secured financing transactions, including repurchase and securities lending agreements:
(in millions)March 31, 2024December 31, 2023
Fixed maturity securities available for sale$3,651$2,723
At March 31, 2024 and December 31, 2023, amounts borrowed under repurchase and securities lending agreements totaled $3.6 billion and $2.6 billion, respectively.
The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity:
Remaining Contractual Maturity of the Agreements
(in millions)Overnight
and
Continuous		up to
30 days		31 - 90
days		91 - 364
days		365 days
or greater		Total
March 31, 2024
Bonds available for sale:
Non-U.S. governments$— $51 $— $— $— $51 
Corporate debt14 3,586 — — — 3,600 
Total$14 $3,637 $— $— $— $3,651 
December 31, 2023
Bonds available for sale:
Non-U.S. governments$— $277 $— $— $— $277 
Corporate debt38 2,408 — — — 2,446 
Total$38 $2,685 $— $— $— $2,723 
We also enter into agreements in which securities are purchased by us under agreements to resell (reverse repurchase agreements), which are accounted for as secured financing transactions and reported as short-term investments or other assets, depending on their terms. These agreements are recorded at their contracted resale amounts plus accrued interest, other than those that are accounted for at fair value. In all reverse repurchase transactions, we take possession of or obtain a security interest in the related securities, and we have the right to sell or repledge this collateral received.
The following table presents information on the fair value of securities pledged to us under reverse repurchase agreements:
(in millions)March 31, 2024December 31, 2023
Securities collateral pledged to us$934 $1,200 
At March 31, 2024 and December 31, 2023, the carrying value of reverse repurchase agreements totaled $927 million and $1.1 billion, respectively.
All secured financing transactions are collateralized and margined on a daily basis consistent with market standards and subject to enforceable master netting arrangements with rights of set off. We do not currently offset any such transactions.
Insurance – Statutory and Other Deposits
The total carrying value of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance contracts, was $18.5 billion and $16.5 billion at March 31, 2024 and December 31, 2023, respectively.
Other Pledges and Restrictions
Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs. We owned an aggregate of $288 million and $283 million of stock in FHLBs at March 31, 2024 and December 31, 2023, respectively. In addition, our subsidiaries have pledged securities available for sale and residential loans associated with borrowings and funding agreements from FHLBs, with a fair value of $6.2 billion and $3.1 billion, respectively, at March 31, 2024 and $6.5 billion and $3.0 billion, respectively, at December 31, 2023.
Certain GIAs have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our long-term debt ratings. The actual amount of collateral required to be posted to the counterparties in the event of such downgrades, and the aggregate amount of payments that we could be required to make, depend on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. The fair value of securities pledged as collateral with respect to these obligations was approximately $77 million and $63 million, at March 31, 2024 and December 31, 2023, respectively. This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties.
Investments held in escrow accounts or otherwise subject to restriction as to their use were $164 million and $164 million, comprised of bonds available for sale and short-term investments at March 31, 2024 and December 31, 2023, respectively.
Reinsurance transactions between AIG and Fortitude Re were structured as modco and loss portfolio transfer arrangements with funds withheld.