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Fair Value Measurements
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements
5. Fair Value Measurements
FAIR VALUE MEASUREMENTS ON A RECURRING BASIS
Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs:
•Level 1: Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments.
•Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.
•Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS
The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used:
June 30, 2024Level 1Level 2Level 3
Counterparty
Netting(a)
Cash
Collateral		Total
(in millions)
Assets:
Bonds available for sale:
U.S. government and government sponsored entities
$24 $4,385 $— $— $— $4,409 
Obligations of states, municipalities and political subdivisions
— 4,488 4 — — 4,492 
Non-U.S. governments161 7,893 7 — — 8,061 
Corporate debt1 30,427 359 — — 30,787 
RMBS— 3,762 2,016 — — 5,778 
CMBS— 4,193 94 — — 4,287 
CLO/ABS— 3,244 1,275 — — 4,519 
Total bonds available for sale
186 58,392 3,755 — — 62,333 
Other bond securities:
Obligations of states, municipalities and political subdivisions— 50 — — — 50 
Non-U.S. governments— 25 — — — 25 
Corporate debt— 267 44 — — 311 
RMBS— 53 49 — — 102 
CMBS— 42 — — — 42 
CLO/ABS— 91 145 — — 236 
Total other bond securities
— 528 238 — — 766 
Equity securities
659 16 13 — — 688 
Other invested assets(b)
8,567 124 145 — — 8,836 
Derivative assets(c):
Interest rate contracts— 263 3 — — 266 
Foreign exchange contracts
— 256 1 — — 257 
Equity contracts
— — 35 — — 35 
Credit contracts
— — 33 — — 33 
Other contracts— — 1 — — 1 
Counterparty netting and cash collateral
— — — (245)(288)(533)
Total derivative assets
— 519 73 (245)(288)59 
Short-term investments
3,845 4,292 — — — 8,137 
Other assets(c)
— — 130 — — 130 
Total(d)
$13,257 $63,871 $4,354 $(245)$(288)$80,949 
Liabilities:
Derivative liabilities(c):
Interest rate contracts
$— $291 $— $— $— $291 
Foreign exchange contracts
— 324 1 — — 325 
Credit contracts
— — 33 — — 33 
Counterparty netting and cash collateral
— — — (245)(180)(425)
Total derivative liabilities
— 615 34 (245)(180)224 
Fortitude Re funds withheld payable
— — (154)— — (154)
Other liabilities
— — 99 — — 99 
Total$— $615 $(21)$(245)$(180)$169 
December 31, 2023Level 1Level 2Level 3
Counterparty
Netting(a)
Cash
Collateral		Total
(in millions)
Assets:
Bonds available for sale:
U.S. government and government sponsored entities
$15 $4,380 $— $— $— $4,395 
Obligations of states, municipalities and political subdivisions
— 4,830 3 — — 4,833 
Non-U.S. governments233 8,156 7 — — 8,396 
Corporate debt— 32,023 323 — — 32,346 
RMBS— 4,415 1,792 — — 6,207 
CMBS— 4,122 25 — — 4,147 
CLO/ABS— 3,629 1,289 — — 4,918 
Total bonds available for sale
248 61,555 3,439 — — 65,242 
Other bond securities:
Obligations of states, municipalities and political subdivisions— 51 — — — 51 
Non-U.S. governments— 24 — — — 24 
Corporate debt— 210 45 — — 255 
RMBS— 42 51 — — 93 
CMBS— 33 — — — 33 
CLO/ABS— 69 138 — — 207 
Total other bond securities
— 429 234 — — 663 
Equity securities
612 39 14 — — 665 
Other invested assets (b)
— 155 221 — — 376 
Derivative assets(c):
Interest rate contracts— 335 406 — — 741 
Foreign exchange contracts
— 450 1 — — 451 
Equity contracts
— 18 48 — — 66 
Credit contracts
— — 33 — — 33 
Other contracts— — 1 — — 1 
Counterparty netting and cash collateral
— — — (450)(711)(1,161)
Total derivative assets
— 803 489 (450)(711)131 
Short-term investments
2,613 6,750 — — — 9,363 
Other assets(c)
— — 243 — — 243 
Total(d)
$3,473 $69,731 $4,640 $(450)$(711)$76,683 
Liabilities:
Derivative liabilities(c):
Interest rate contracts
$— $352 $— $— $— $352 
Foreign exchange contracts
— 561 3 — — 564 
Credit contracts
— 3 33 — — 36 
Counterparty netting and cash collateral
— — — (450)(249)(699)
Total derivative liabilities
— 916 36 (450)(249)253 
Fortitude Re funds withheld payable
— — (148)— — (148)
Other liabilities— 107 122 — — 229 
Total$— $1,023 $10 $(450)$(249)$334 
(a)Represents netting of derivative exposures covered by qualifying master netting agreements.
(b)Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $3.6 billion and $3.8 billion as of June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024, includes AIG's ownership interest in Corebridge of $8.6 billion on which AIG elected the fair value option.
(c)Presented as part of Other assets and Other liabilities on the Condensed Consolidated Balance Sheets.
(d)Excludes $22 million and $15 million as of June 30, 2024 and December 31, 2023, respectively, of assets reclassified to Assets held for sale on the Condensed Consolidated Balance Sheets.
CHANGES IN LEVEL 3 RECURRING FAIR VALUE MEASUREMENTS
The following tables present changes during the three and six months ended June 30, 2024 and 2023 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets at June 30, 2024 and 2023:
(in millions)Fair Value
Beginning
of Period		Net Realized
and
Unrealized
Gains
(Losses)
Included
in Income		Other
Comprehensive
Income (Loss)		Purchases,
Sales,
Issuances
and
Settlements,
Net		Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period		Changes in
Unrealized
Gains
(Losses)
Included in
Income on
Instruments
Held at End
of Period		Changes in
Unrealized Gains
(Losses)
Included in Other
Comprehensive
Income (Loss) for
Recurring Level 3
Instruments Held
at End of Period
Three Months Ended June 30, 2024
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$4 $— $— $— $— $— $— $4 $— $— 
Non-U.S. governments
7 — — — — — — 7 — — 
Corporate debt
383 — (2)(22)36 (36)— 359 — (2)
RMBS
1,766 24 (29)(75)287 (1)44 2,016 — (30)
CMBS
43 (4)6 (18)68 (1)— 94 — — 
CLO/ABS1,284 3 3 (47)44 (12)— 1,275 — 3 
Total bonds available for sale
3,487 23 (22)(162)435 (50)44 3,755 — (29)
Other bond securities:
Corporate Debt46 1 — — — — (3)44 — — 
RMBS53 — — (2)— (2)— 49 — — 
CLO/ABS144 1 — (3)2 — 1 145 1 — 
Total other bond securities
243 2 — (5)2 (2)(2)238 1 — 
Equity securities
13 — — — — — — 13 — — 
Other invested assets
183 (4)— (36)— — 2 145 (1)— 
Other assets
129 — — 1 — — — 130 — — 
Total
$4,055 $21 $(22)$(202)$437 $(52)$44 $4,281 $— $(29)
(in millions)Fair Value
Beginning
of Period		Net
Realized
and
Unrealized
(Gains)
Losses
Included
in Income		Other
Comprehensive
Income (Loss)		Purchases,
Sales,
Issuances
and
Settlements,
Net		Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period		Changes in
Unrealized
Gains
(Losses)
Included in
Income on
Instruments
Held at End
of Period		Changes in
Unrealized Gains
(Losses)
Included in Other
Comprehensive
Income (Loss) for
Recurring Level 3
Instruments Held
at End of Period
Liabilities:
Derivative liabilities, net:
Interest rate contracts
$(128)$(8)$— $133 $— $— $— $(3)$— $— 
Foreign exchange contracts
2 (2)— — — — — — — — 
Equity contracts
(56)(2)— 23 — — — (35)2 — 
Other contracts
(1)— — — — — — (1)1 — 
Total derivative liabilities, net(a)
(183)(12)— 156 — — — (39)3 — 
Fortitude Re funds withheld payable(119)(8)— (27)— — — (154)33 — 
Other Liabilities92 28 — (21)— — — 99 — — 
Total$(210)$8 $— $108 $— $— $— $(94)$36 $— 
(in millions)Fair Value
Beginning
of Period		Net Realized
and
Unrealized
Gains
(Losses)
Included
in Income		Other
Comprehensive
Income (Loss)		Purchases,
Sales,
Issuances
and
Settlements,
Net		Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period		Changes in
Unrealized
Gains
(Losses)
Included in
Income on
Instruments
Held at End
of Period		Changes in
Unrealized Gains
(Losses)
Included in Other
Comprehensive
Income (Loss) for
Recurring Level 3
Instruments Held
at End of Period
Three Months Ended June 30, 2023
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$15 $— $1 $— $— $— $— $16 $— $— 
Non-U.S. governments9 — 1 (2)— (2)— 6 — 1 
Corporate debt728 (4)10 (131)1 (186)— 418 — 4 
RMBS1,896 30 56 (36)— (43)(35)1,868 — 56 
CMBS220 (22)(2)— — (148)— 48 — (4)
CLO/ABS1,524 (15)3 (99)6 (32)9 1,396 — (9)
Total bonds available for sale4,392 (11)69 (268)7 (411)(26)3,752 — 48 
Other bond securities:
Corporate debt— — — 44 — — — 44 — — 
RMBS52 2 — (2)— — — 52 (4)— 
CLO/ABS176 (3)— (19)— — — 154 (25)— 
Total other bond securities228 (1)— 23 — — — 250 (29)— 
Equity securities25 2 — — 2 (1)— 28 2 — 
Other invested assets235 1 — (9)— — — 227 (3)— 
Other assets110 — — 1 — — — 111 — — 
Total
$4,990 $(9)$69 $(253)$9 $(412)$(26)$4,368 $(30)$48 
(in millions)Fair Value
Beginning
of Period		Net
Realized
and
Unrealized
(Gains)
Losses
Included
in Income		Other
Comprehensive
Income (Loss)		Purchases,
Sales,
Issuances
and
Settlements,
Net		Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period		Changes in
Unrealized
Gains
(Losses)
Included in
Income on
Instruments
Held at End
of Period		Changes in
Unrealized Gains
(Losses)
Included in Other
Comprehensive
Income (Loss) for
Recurring Level 3
Instruments Held
at End of Period
Liabilities:
Derivative liabilities, net:
Interest rate contracts$(355)$26 $— $(10)$— $— $— $(339)$— $(21)
Foreign exchange contracts— 2 — — — — — 2 — (2)
Equity contracts(328)2 — (73)— — — (399)4 — 
Credit contracts— (1)— 1 — — — — — — 
Other contracts(1)— — — — — — (1)1 — 
Total derivative liabilities, net(a)(684)29 — (82)— — — (737)5 (23)
Fortitude Re funds withheld payable(167)(58)— (44)— — — (269)78 — 
Other liabilities112 (14)— — — — — 98 — — 
Total$(739)$(43)$— $(126)$— $— $— $(908)$83 $(23)
(in millions)Fair Value
Beginning
of Year		Net Realized
and
Unrealized
Gains
(Losses)
Included
in Income		Other
Comprehensive
Income (Loss)		Purchases,
Sales,
Issuances
and
Settlements,
Net		Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period		Changes in
Unrealized
Gains
(Losses)
Included in
Income on
Instruments
Held at End
of Period		Changes in
Unrealized Gains
(Losses)
Included in Other
Comprehensive
Income (Loss) for
Recurring Level 3
Instruments Held
at End of Period
Six Months Ended June 30, 2024
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$3 $— $— $1 $— $— $— $4 $— $— 
Non-U.S. governments7 — — — — — — 7 — — 
Corporate debt323 1 (2)(60)134 (37)— 359 — (1)
RMBS1,792 47 (2)(150)287 (2)44 2,016 — (2)
CMBS25 (4)6 (18)85 — — 94 — 1 
CLO/ABS1,289 (12)32 (66)44 (12)— 1,275 — 29 
Total bonds available for sale3,439 32 34 (293)550 (51)44 3,755 — 27 
Other bond securities:
Corporate debt45 1 — — — — (2)44 — — 
RMBS51 — — — — (2)— 49 — — 
CLO/ABS138 — — 5 2 — — 145 (1)— 
Total other bond securities234 1 — 5 2 (2)(2)238 (1)— 
Equity securities14 — — — — (1)— 13 1 — 
Other invested assets221 (13)— (39)— (13)(11)145 (12)— 
Other assets243 — — (113)— — — 130 — — 
Total
$4,151 $20 $34 $(440)$552 $(67)$31 $4,281 $(12)$27 
(in millions)Fair Value
Beginning
of Year		Net
Realized
and
Unrealized
(Gains)
Losses
Included
in Income		Other
Comprehensive
Income (Loss)		Purchases,
Sales,
Issuances
and
Settlements,
Net		Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period		Changes in
Unrealized
Gains
(Losses)
Included in
Income on
Instruments
Held at End
of Period		Changes in
Unrealized Gains
(Losses)
Included in Other
Comprehensive
Income (Loss) for
Recurring Level 3
Instruments Held
at End of Period
Liabilities:
Derivative liabilities, net:
Interest rate contracts$(406)$61 $— $342 $— $— $— $(3)$(3)$— 
Foreign exchange contracts2 (2)— — — — — — — — 
Equity contracts(48)(18)— 31 — — — (35)10 — 
Other contracts(1)(1)— 1 — — — (1)1 — 
Total derivative liabilities, net(a)
(453)40 — 374 — — — (39)8 — 
Fortitude Re funds withheld payable(148)1 — (7)— — — (154)47 — 
Other Liabilities122 (2)— (21)— — — 99 — — 
Total$(479)$39 $— $346 $— $— $— $(94)$55 $— 
(in millions)Fair Value
Beginning
of Year		Net Realized
and
Unrealized
Gains
(Losses)
Included
in Income		Other
Comprehensive
Income (Loss)		Purchases,
Sales,
Issuances
and
Settlements,
Net		Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period		Changes in
Unrealized
Gains
(Losses)
Included in
Income on
Instruments
Held at End
of Period		Changes in
Unrealized Gains
(Losses)
Included in Other
Comprehensive
Income (Loss) for
Recurring Level 3
Instruments Held
at End of Period
Six Months Ended June 30, 2023
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$20 $— $1 $(5)$— $— $— $16 $— $1 
Non-U.S. governments2 — 1 (2)7 (2)— 6 — 1 
Corporate debt879 (4)17 (347)108 (235)— 418 — 3 
RMBS1,884 59 26 (18)— (48)(35)1,868 — 24 
CMBS207 (22)(1)1 11 (148)— 48 — (12)
CLO/ABS1,483 (12)20 (83)17 (42)13 1,396 — 12 
Total bonds available for sale4,475 21 64 (454)143 (475)(22)3,752 — 29 
Other bond securities:
Corporate debt— — — 44 — — — 44 — — 
RMBS65 2 — (15)— — — 52 (9)— 
CLO/ABS158 1 — (13)— (3)11 154 (23)— 
Total other bond securities223 3 — 16 — (3)11 250 (32)— 
Equity securities13 2 — 4 10 (1)— 28 2 — 
Other invested assets244 (7)— (10)— — — 227 (10)— 
Other assets107 — — 4 — — — 111 — — 
Total
$5,062 $19 $64 $(440)$153 $(479)$(11)$4,368 $(40)$29 
(in millions)Fair Value
Beginning
of Year		Net
Realized
and
Unrealized
(Gains)
Losses
Included
in Income		Other
Comprehensive
Income (Loss)		Purchases,
Sales,
Issuances
and
Settlements,
Net		Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period		Changes in
Unrealized
Gains
(Losses)
Included in
Income on
Instruments
Held at End
of Period		Changes in
Unrealized Gains
(Losses)
Included in Other
Comprehensive
Income (Loss) for
Recurring Level 3
Instruments Held
at End of Period
Liabilities:
Derivative liabilities, net:
Interest rate contracts$(311)$84 $— $(112)$— $— $— $(339)$— $(29)
Foreign exchange contracts— 2 — — — — — 2 — (2)
Equity contracts(271)(69)— (59)— — — (399)63 — 
Credit contracts— (1)— 1 — — — — — — 
Other contracts(1)(1)— 1 — — — (1)1 — 
Total derivative liabilities, net(a)
(583)15 — (169)— — — (737)64 (31)
Fortitude Re funds withheld payable(41)82 — (310)— — — (269)(48)— 
Other liabilities112 (14)— — — — — 98 — — 
Total
$(512)$83 $— $(479)$— $— $— $(908)$16 $(31)
(a)Total Level 3 derivative exposures have been netted in these tables for presentation purposes only.
Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities shown above are reported in the Condensed Consolidated Statements of Income (Loss) as follows:
(in millions)Net
Investment
Income		Net Realized
Gains (Losses)		Total
Three Months Ended June 30, 2024
Assets:
Bonds available for sale$25 $(2)$23 
Other bond securities2 —2 
Other invested assets(4)—(4)
Three Months Ended June 30, 2023
Assets:
Bonds available for sale$4 $(15)$(11)
Other bond securities(1)— (1)
Equity securities2 — 2 
Other invested assets1 — 1 
Six Months Ended June 30, 2024
Assets:
Bonds available for sale$40 $(8)$32 
Other bond securities1 — 1 
Other invested assets(13)— (13)
Six Months Ended June 30, 2023
Assets:
Bonds available for sale$37 $(16)$21 
Other bond securities3 — 3 
Equity securities2 — 2 
Other invested assets(7)— (7)
(in millions)Net
Investment
Income		Net Realized
(Gains) Losses		Total
Three Months Ended June 30, 2024
Liabilities:
Derivative liabilities, net$— $(12)$(12)
Fortitude Re funds withheld payable— (8)(8)
Other Liabilities— 28 28 
Three Months Ended June 30, 2023
Liabilities:
Derivative liabilities, net$— $29 $29 
Fortitude Re funds withheld payable— (58)(58)
Other Liabilities— (14)(14)
Six Months Ended June 30, 2024
Liabilities:
Derivative liabilities, net$— $40 $40 
Fortitude Re funds withheld payable— 1 1 
Other Liabilities— (2)(2)
Six Months Ended June 30, 2023
Liabilities:
Derivative liabilities, net$— $15 $15 
Fortitude Re funds withheld payable— 82 82 
Other Liabilities— (14)(14)
The following table presents the gross components of purchases, sales, issuances and settlements, net, shown above, for the three and six months ended June 30, 2024 and 2023 related to Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets:
(in millions)PurchasesSales
Issuances
and
Settlements(a)
Purchases, Sales,
 Issuances and
Settlements, Net(a)
Three Months Ended June 30, 2024
Assets:
Bonds available for sale:
Non-U.S. governments$4 $— $(4)$— 
Corporate debt5 — (27)(22)
RMBS— — (75)(75)
CMBS— — (18)(18)
CLO/ABS6 — (53)(47)
Total bonds available for sale15 — (177)(162)
Other bond securities:
RMBS— (1)(1)(2)
CLO/ABS— — (3)(3)
Total other bond securities— (1)(4)(5)
Other invested assets— — (36)(36)
Other assets— — 1 1 
Total$15 $(1)$(216)$(202)
Liabilities:
Derivative liabilities, net$— $— $156 $156 
Fortitude Re funds withheld payable— — (27)(27)
Other liabilities— — (21)(21)
Total$— $— $108 $108 
Three Months Ended June 30, 2023
Assets:
Bonds available for sale:
Non-U.S. governments$— $— $(2)$(2)
Corporate debt— — (131)(131)
RMBS46 — (82)(36)
CMBS— (5)5 — 
CLO/ABS77 (148)(28)(99)
Total bonds available for sale123 (153)(238)(268)
Other bond securities:
Corporate debt20 — 24 44 
RMBS— — (2)(2)
CLO/ABS— 4 (23)(19)
Total other bond securities20 4 (1)23 
Other invested assets(1)— (8)(9)
Other assets— — 1 1 
Total$142 $(149)$(246)$(253)
Liabilities:
Derivative liabilities, net$(105)$1 $22 $(82)
Fortitude Re funds withheld payable— — (44)(44)
Total$(105)$1 $(22)$(126)
(in millions)PurchasesSales
Issuances
and
Settlements(a)
Purchases, Sales,
 Issuances and
Settlements, Net(a)
Six Months Ended June 30, 2024
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$1 $— $— $1 
Non-U.S. governments4 — (4)— 
Corporate debt11 (3)(68)(60)
RMBS— (1)(149)(150)
CMBS— — (18)(18)
CLO/ABS66 (2)(130)(66)
Total bonds available for sale82 (6)(369)(293)
Other bond securities:
RMBS3 (1)(2)— 
CLO/ABS11 — (6)5 
Total other bond securities14 (1)(8)5 
Other invested assets1 — (40)(39)
Other assets— — (113)(113)
Total$97 $(7)$(530)$(440)
Liabilities:
Derivative liabilities, net$— $— $374 $374 
Fortitude Re funds withheld payable— — (7)(7)
Other Liabilities— — (21)(21)
Total$— $— $346 $346 
Six Months Ended June 30, 2023
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$1 $(4)$(2)$(5)
Non-U.S. governments— — (2)(2)
Corporate Debt8 — (355)(347)
RMBS170 (19)(169)(18)
CMBS1 (5)5 1 
CLO/ABS107 (151)(39)(83)
Total bonds available for sale287 (179)(562)(454)
Other bond securities:
Corporate debt20 — 24 44 
RMBS— — (15)(15)
CLO/ABS14 — (27)(13)
Total other bond securities34 — (18)16 
Equity securities5 — (1)4 
Other invested assets1 — (11)(10)
Other assets— — 4 4 
Total$327 $(179)$(588)$(440)
Liabilities:
Derivative liabilities, net$(316)$4 $143 $(169)
Fortitude Re funds withheld payable— — (310)(310)
Total$(316)$4 $(167)$(479)
(a)There were no issuances during the three and six months ended June 30, 2024 and 2023.
Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at June 30, 2024 and 2023 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities).
Transfers of Level 3 Assets and Liabilities
The Net realized and unrealized gains (losses) included in income (loss) or Other comprehensive income (loss) (OCI) as shown in the table above excludes $(24) million and $(27) million of net gains (losses) related to assets and liabilities transferred into Level 3 during the three and six months ended June 30, 2024, respectively, and includes $1 million and $1 million of net gains (losses) related to assets and liabilities transferred out of Level 3 during the three and six months ended June 30, 2024, respectively.
The Net realized and unrealized gains (losses) included in income (loss) or OCI as shown in the table above excludes $0 million and $1 million of net gains (losses) related to assets and liabilities transferred into Level 3 during the three and six months ended June 30, 2023, respectively, and includes $(9) million and $(9) million of net gains (losses) related to assets and liabilities transferred out of Level 3 during the three and six months ended June 30, 2023, respectively.
Transfers of Level 3 Assets
During the three and six months ended June 30, 2024 and 2023, transfers into Level 3 assets primarily included certain investments in private placement corporate debt, commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLO)/asset-backed securities (ABS). Transfers of private placement corporate debt and certain ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity. The transfers of investments in CMBS, RMBS, CLO and certain ABS into Level 3 assets were due to diminished market transparency and liquidity for individual security types.
During the three and six months ended June 30, 2024 and 2023, transfers out of Level 3 assets primarily included certain investments in private placement corporate debt and CMBS. Transfers of private placement corporate debt out of Level 3 assets were based on consideration of market liquidity as well as related transparency of pricing and associated observable inputs for these investments. Transfers of certain investments in private placement corporate debt out of Level 3 assets were primarily the result of using observable pricing information that reflects the fair value of those securities without the need for adjustment based on our own assumptions regarding the characteristics of a specific security or the current liquidity in the market.
Transfers of Level 3 Liabilities
There were no significant transfers of derivative or other liabilities into or out of Level 3 for the three and six months ended June 30, 2024 and 2023.
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS
The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and includes only those instruments for which information about the inputs is reasonably available to us, such as data from independent third-party valuation service providers. Because input information from third-parties with respect to certain Level 3 instruments (primarily CLO/ABS) may not be reasonably available to us, balances shown below may not equal total amounts reported for such Level 3 assets and liabilities:
(in millions)Fair Value at
June 30, 2024		Valuation
 Technique
Unobservable Input(b)
Range
(Weighted Average)(c)
Assets:
Obligations of states, municipalities and political subdivisions$4 Discounted cash flowYield
5.09% - 5.47% (5.28%)
Corporate debt306 Discounted cash flowYield
5.69% - 10.38% (8.04%)
RMBS(a)
1,268 Discounted cash flowConstant prepayment rate
4.58% - 10.68% (7.63%)
Loss severity
41.73% - 76.79% (59.26%)
Constant default rate
0.77% - 2.62% (1.70%)
Yield
6.30% - 7.61% (6.96%)
CLO/ABS(a)
1,163 Discounted cash flowYield
5.47% - 8.82% (7.15%)
CMBS14 Discounted cash flowYield
7.22% - 15.19% (11.20%)
(in millions)Fair Value at
December 31, 2023		Valuation
 Technique
Unobservable Input(b)
Range
(Weighted Average)(c)
Assets:
Obligations of states, municipalities and political subdivisions$3 Discounted cash flowYield
5.00% - 5.50% (5.23%)
Corporate debt332 Discounted cash flowYield
5.16% - 9.62% (7.39%)
RMBS(a)
1,341 Discounted cash flowConstant prepayment rate
4.43% - 10.30% (7.36%)
Loss severity
43.21% - 76.65% (59.93%)
Constant default rate
0.82% - 2.64% (1.73%)
Yield
6.18% - 7.42% (6.80%)
CLO/ABS(a)
1,100 Discounted cash flowYield
5.31% - 8.56% (6.94%)
CMBS22 Discounted cash flowYield
9.84% - 17.24% (13.54%)
(a)Information received from third-party valuation service providers. The ranges of the unobservable inputs for constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CLO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by us, because there are other factors relevant to the fair values of specific tranches owned by us including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points.
(b)Represents discount rates, estimates and assumptions that we believe would be used by market participants when valuing these assets and liabilities.
(c)The weighted averaging for fixed maturity securities is based on the estimated fair value of the securities.
The ranges of reported inputs for Obligations of states, municipalities and political subdivisions, Corporate debt, RMBS, CLO/ABS, and CMBS valued using a discounted cash flow technique consist of one standard deviation in either direction from the value‑weighted average. The preceding table does not give effect to our risk management practices that might offset risks inherent in these Level 3 assets and liabilities.
Interrelationships Between Unobservable Inputs
We consider unobservable inputs to be those for which market data is not available and that are developed using the best information available to us about the assumptions that market participants would use when pricing the asset or liability. Relevant inputs vary depending on the nature of the instrument being measured at fair value. The following paragraphs provide a general description of significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. In practice, simultaneous changes in assumptions may not always have a linear effect on the inputs discussed below. Interrelationships may also exist between observable and unobservable inputs. Such relationships have not been included in the discussion below. For each of the individual relationships described below, the inverse relationship would also generally apply.
Fixed Maturity Securities
The significant unobservable input used in the fair value measurement of fixed maturity securities is yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. The yield may be affected by other factors including constant prepayment rates, loss severity, and constant default rates. In general, increases in the yield would decrease the fair value of investments, and conversely, decreases in the yield would increase the fair value of investments.
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
The following table includes information related to our investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate net asset value per share (or its equivalent). For these investments, which are measured at fair value on a recurring basis, we use the net asset value per share to measure fair value.
June 30, 2024December 31, 2023
(in millions)Investment Category IncludesFair Value Using NAV Per Share (or its equivalent)Unfunded CommitmentsFair Value Using NAV Per Share (or its equivalent)Unfunded Commitments
Investment Category
Private equity funds:
Leveraged buyoutDebt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage$1,212 $479 $1,171 $558 
Real assetsInvestments in real estate properties, agricultural and infrastructure assets, including power plants and other energy producing assets839 308 870 344 
Venture capitalEarly-stage, high-potential, growth companies expected to generate a return through an eventual realization event, such as an initial public offering or sale of the company77 45 67 50 
Growth equityFunds that make investments in established companies for the purpose of growing their businesses204 13 196 9 
MezzanineFunds that make investments in the junior debt and equity securities of leveraged companies129 54 140 56 
OtherIncludes distressed funds that invest in securities of companies that are in default or under bankruptcy protection, as well as funds that have multi- strategy, and other strategies901 60 944 64 
Total private equity funds3,362 959 3,388 1,081 
Hedge funds:
Event-drivenSecurities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations13 — 13 — 
Long-shortSecurities that the manager believes are undervalued, with corresponding short positions to hedge market risk168 — 389 — 
MacroInvestments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions— — — — 
OtherIncludes investments held in funds that are less liquid, as well as other strategies which allow for broader allocation between public and private investments7 — 9 — 
Total hedge funds188 — 411 — 
Total$3,550 $959 $3,799 $1,081 
Private equity fund investments included above are not redeemable, because distributions from the funds will be received when underlying investments of the funds are liquidated. Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one-year or two-year increments.
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 eight 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.
FAIR VALUE OPTION
The following table presents the gains or losses recorded related to the eligible instruments for which we elected the fair value option:
Gain (Loss) Three Months
Ended June 30,		Gain (Loss) Six Months
Ended June 30,
(in millions)2024202320242023
Other bond securities(a)
$5 $(11)$7 $9 
Alternative investments(b)
28 54 108 130 
All other investments(c)
65 — 65 — 
Total gain (loss)$98 $43 $180 $139 
(a)Includes certain securities supporting the funds withheld arrangements with Fortitude Re. For additional information regarding the gains and losses for Other bond securities, see Note 6. For additional information regarding the funds withheld arrangements with Fortitude Re, see Note 8.
(b)Includes certain hedge funds, private equity funds and real estate investments.
(c)Represents the impact of changes in Corebridge stock price on the value of AIG's ownership interest in Corebridge.
We calculate the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates, our observable credit spreads on these liabilities and other factors that mitigate the risk of nonperformance such as cash collateral posted.
FAIR VALUE INFORMATION ABOUT FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE
The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
Estimated Fair ValueCarrying
Value
(in millions)Level 1Level 2Level 3Total
June 30, 2024
Assets:
Mortgage and other loans receivable$— $341 $3,871 $4,212 $4,347 
Other invested assets— 591 6 597 597 
Short-term investments(a)
— 4,426 — 4,426 4,426 
Cash(b)
1,381 — — 1,381 1,381 
Other assets18 — — 18 18 
Liabilities:
Fortitude Re funds withheld payable— — 3,518 3,518 3,518 
Long-term debt— 8,867 235 9,102 9,861 
Debt of consolidated investment entities— — 79 79 79 
Estimated Fair ValueCarrying
Value
(in millions)Level 1Level 2Level 3Total
December 31, 2023
Assets:
Mortgage and other loans receivable$— $242 $4,113 $4,355 $4,441 
Other invested assets— 645 6 651 651 
Short-term investments
— 3,502 — 3,502 3,502 
Cash1,540 — — 1,540 1,540 
Other assets32 — — 32 32 
Liabilities:
Fortitude Re funds withheld payable— — 3,675 3,675 3,675 
Long-term debt— 9,623 267 9,890 10,375 
Debt of consolidated investment entities— — 231 231 231 
(a)Excludes $7 million at June 30, 2024 reclassified to Assets held for sale on the Condensed Consolidated Balance Sheets.
(b)Excludes $90 million at June 30, 2024 reclassified to Assets held for sale on the Condensed Consolidated Balance Sheets.