XML 44 R31.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Reinsurance (Tables)
 6 Months Ended
Jun. 30, 2024
Insurance [Abstract]  
Summary of Assets Supporting Funds Withheld Arrangements
There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re. The following summarizes the composition of the pool of assets:
June 30, 2024December 31, 2023
(in millions)Carrying
Value		Fair
Value		Carrying
Value		Fair
Value		Corresponding Accounting Policy
Fixed maturity securities - available for sale(a)
$1,997 $1,997 $2,180 $2,180 Fair value through other comprehensive income (loss)
Fixed maturity securities - fair value option761 761 655 655 Fair value through net investment income
Commercial mortgage loans474 461 543 528 Amortized cost
Short-term investments18 18 46 46 Fair value through net investment income
Funds withheld investment assets3,250 3,237 3,424 3,409 
Derivative assets, net(b)
1 1 — — Fair value through net realized gains (losses)
Other(c)
126 126 118 118 Amortized cost
Total$3,377 $3,364 $3,542 $3,527 
(a)The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $(53) million ($(42) million after-tax) and $21 million ($16 million after-tax), respectively for the six months ended June 30, 2024 and 2023.
(b)The derivative assets and liabilities have been presented net of cash collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $3 million and $27 million, respectively, as of June 30, 2024. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $1 million and $28 million, respectively, as of December 31, 2023. These derivative assets and liabilities are fully collateralized either by cash or securities.
(c)Primarily comprised of Cash and Accrued investment income.
Summary of the Impact of Funds Withheld Arrangements
The impact of the funds withheld arrangements with Fortitude Re was as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in millions)2024202320242023
Net investment income - Fortitude Re funds withheld assets$33 $25 $72 $77 
Net realized gains (losses) on Fortitude Re funds withheld assets:
Net realized losses - Fortitude Re funds withheld assets(1)(7)(20)(61)
Net realized gains (losses) - Fortitude Re funds withheld embedded derivative8 58 (1)(82)
Net realized gains (losses) on Fortitude Re funds withheld assets7 51 (21)(143)
Income (loss) from continuing operations before income tax expense (benefit)40 76 51 (66)
Income tax expense (benefit)(a)
9 16 11 (14)
Net income (loss)
31 60 40 (52)
Change in unrealized appreciation (depreciation) of all other investments(a)
(34)(58)(42)16 
Comprehensive income (loss)$(3)$2 $(2)$(36)
(a)The income tax expense (benefit) and the tax impact in Accumulated other comprehensive income (loss) (AOCI) was computed using AIG’s U.S. statutory tax rate of 21 percent.
Rollforward of the Reinsurance Recoverable Allowance
The following table presents a rollforward of the reinsurance recoverable allowance:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in millions)2024202320242023
Balance, beginning of period$255 $253 $255 $260 
Addition to (release of) allowance for expected credit losses and disputes, net(1)(1)— (4)
Write-offs charged against the allowance for credit losses and disputes— — (1)(1)
Other changes6 2 6 (1)
Balance, end of period$260 $254 $260 $254