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Held-For-Sale Classification and Discontinued Operations Presentation
 9 Months Ended
Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Held-For-Sale Classification and Discontinued Operations Presentation
4. Held-For-Sale Classification & Discontinued Operations Presentation
HELD-FOR-SALE CLASSIFICATION
We report and classify a business or a component of an entity as held-for-sale (Held-For-Sale Business) when management has approved the sale or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met. A Held-For-Sale Business is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized.
Assets and liabilities related to a Held-For-Sale Business are reported in Assets held for sale and Liabilities held for sale, respectively, in our Condensed Consolidated Balance Sheets beginning in the period in which the business is classified as held-for-sale. At September 30, 2024, businesses and assets reported and classified as held-for-sale primarily consisted of our global personal travel insurance and assistance business, described below.
Nippon Sale
On May 16, 2024, AIG entered into a stock purchase agreement with Corebridge and Nippon Life Insurance Company (Nippon), a mutual company (sougogaisha) organized under the laws of Japan, pursuant to which AIG agreed to sell 121,956,256 shares of common stock of Corebridge, representing approximately 20 percent of the issued and outstanding common stock at signing, to Nippon for aggregate consideration of $3.8 billion in cash. The transaction is expected to close in the first quarter of 2025, subject to certain closing conditions, including the receipt of regulatory approvals. As a result, Corebridge met the criteria to be presented as held-for-sale and discontinued operations. In addition, on June 9, 2024, AIG met the requirements for the deconsolidation of Corebridge. For further details, see — Discontinued Operations Presentation below.
Global Personal Travel Business
On June 26, 2024, AIG entered into a definitive agreement to sell its global individual personal travel insurance and assistance business to Zurich Insurance Group for $600 million in cash plus additional earn-out consideration. The agreement includes the Travel Guard business and its servicing capabilities, excluding our travel insurance businesses in Japan and our AIG joint venture arrangement in India. Travel coverages offered through AIG’s Accident & Health business are also excluded from this agreement. The sale is expected to close by the end of 2024, subject to customary closing conditions, including regulatory approvals. The results of our global individual personal travel insurance and assistance business are reported in General Insurance North America and International.
DISCONTINUED OPERATIONS PRESENTATION
We present a business, or a component of an entity, as discontinued operations if a) it meets the held-for-sale criteria, or is disposed of by sale, or is disposed of other than by sale, and b) the disposal of the business, or component of an entity, represents a strategic shift that has (or will have) a major effect on AIG’s financial results.
In September 2022, AIG closed on the initial public offering of Corebridge. Since September 2022 and through June 9, 2024, AIG sold portions of its interests in Corebridge through secondary public offerings. On June 9, 2024, AIG held 48.4 percent of Corebridge common stock, waived its right to majority representation on the Corebridge Board of Directors and one of AIG's designees resigned from the Corebridge Board of Directors as of June 9, 2024 (the Deconsolidation Date). As a result, AIG met the requirements for the deconsolidation of Corebridge. The historical financial results of Corebridge, for all periods presented, are reflected in these Condensed Consolidated Financial Statements as discontinued operations.
On June 3, 2024, AIG closed on a secondary offering of 30 million shares of Corebridge common stock. The sale was recorded as an equity transaction as AIG controlled Corebridge as of the transaction date. The aggregate gross proceeds of the offering, before deducting underwriting discounts and commission and other expenses payable by AIG, were $876 million. As a result of the offering, AIG recorded an increase of $261 million in Total AIG shareholders' equity. On July 2, 2024, the underwriters exercised their option to purchase an additional 1.9 million shares, which reduced AIG's remaining investment in Corebridge reported in Other invested assets.
On August 5, 2024, AIG entered into a Share Repurchase Agreement with Corebridge. The per share purchase price was $24.90, the closing price of Corebridge’s common stock on the New York Stock Exchange on August 5, 2024. This repurchase was completed on August 7, 2024 for an aggregate purchase price of approximately $200 million.
Due to share repurchases by Corebridge and sale of shares by AIG after the Deconsolidation Date, as of September 30, 2024, AIG held 48.6 percent of the outstanding common stock of Corebridge.
The assets and liabilities of Corebridge are classified as Assets of discontinued operations and Liabilities of discontinued operations in AIG’s Condensed Consolidated Balance Sheets as of December 31, 2023. The results of operations of Corebridge are reported as discontinued operations for all periods presented in the Condensed Consolidated Statement of Income (Loss). In the second quarter of 2024, AIG recognized a loss of $4.7 billion as a result of the deconsolidation, mainly due to the recognition of accumulated comprehensive loss of $7.2 billion. The loss is recorded as a component of discontinued operations. Corebridge was previously reported in Life and Retirement and Other Operations.
Subsequent to the Deconsolidation Date, AIG has elected the fair value option and will reflect its retained interest in Corebridge as an equity method investment in Other invested assets in AIG's Condensed Consolidated Balance Sheets using Corebridge’s stock price as its fair value. Dividends received from Corebridge and changes in its stock price are recognized in Net investment income in AIG’s Condensed Consolidated Financial Statements.
The following provides financial information related to Corebridge as an equity method investee as if Corebridge was an equity method investee for the periods presented. The “Equity method income (loss) related to Corebridge (based on fair value)” assumes a retained interest in Corebridge of 48.6 percent and is calculated based on the changes in Corebridge’s stock price for the periods presented.
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Corebridge pre-tax income$(1,594)$2,461 $(122)$2,703 
Equity method income (loss) related to Corebridge (based on fair value)$11 $584 $2,094 $(87)
The following table summarizes the components of assets and liabilities held-for-sale and assets and liabilities of discontinued operations on the Condensed Consolidated Balance Sheets at September 30, 2024 and December 31, 2023:
September 30, 2024December 31, 2023
(in millions)Assets
and
Liabilities
Held
for Sale		Assets
and
Liabilities
Held
for Sale		Corebridge
(Assets and
Liabilities of
Discontinued
Operations)
Assets:
Investments:
Fixed maturity securities:
Bonds available for sale, at fair value, net of allowance for credit losses$— $14 $166,657 
Other bond securities, at fair value— — 4,579 
Equity securities, at fair value— — 63 
Mortgage and other loans receivable, net of allowance for credit losses— — 46,732 
Other invested assets— — 9,916 
Short-term investments
11 1 4,346 
Total investments11 15 232,293 
Cash85 — 618 
Accrued investment income— — 2,011 
Premiums and other receivables, net of allowance for credit losses and disputes32 9 709 
Reinsurance assets - Fortitude Re, net of allowance for credit losses and disputes— — 26,772 
Reinsurance assets - other, net of allowance for credit losses and disputes3 2,519 
Deferred income taxes(9)— 8,307 
Deferred policy acquisition costs— — 10,782 
Market risk benefit assets, at fair value— — 912 
Other assets, net of allowance for credit losses(a)
18 3 2,820 
Separate account assets, at fair value— — 91,005 
Total assets held for sale/assets of discontinued operations$137 $30 $378,748 
Liabilities:
Liability for unpaid losses and loss adjustment expenses, including allowance for credit losses$— $19 $— 
Unearned premiums— 7 65 
Future policy benefits — — 57,946 
Policyholder contract deposits— — 161,979 
Market risk benefit liabilities, at fair value— — 5,705 
Other policyholder funds— — 2,862 
Fortitude Re funds withheld payable— — 25,957 
Other liabilities78 2 8,790 
September 30, 2024December 31, 2023
(in millions)Assets
and
Liabilities
Held
for Sale		Assets
and
Liabilities
Held
for Sale		Corebridge
(Assets and
Liabilities of
Discontinued
Operations)
Short-term and long-term debt— — 9,420 
Debt of consolidated investment entities— — 2,360 
Separate account liabilities— — 91,005 
Total liabilities held for sale/liabilities of discontinued operations$78 $28 $366,089 
(a)Other assets, net of allowance for credit losses includes goodwill and other intangibles of $116 million and $3 million, respectively, for Corebridge at December 31, 2023.
The following table presents the amounts related to the operations of Corebridge that have been reflected in Net income from discontinued operations:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Revenues:
Premiums$— $701 $2,723 $5,249 
Policy fees— 702 1,269 2,094 
Net investment income— 2,705 5,238 8,125 
Net realized gains (losses)— 1,216 (923)(464)
Other income— 186 372 561 
Total revenues— 5,510 8,679 15,565 
Benefits, losses and expenses:
Policyholder benefits and losses incurred— 1,106 3,618 6,478 
Change in the fair value of market risk benefits, net— (418)(350)(484)
Interest credited to policyholder account balances— 1,135 2,184 3,237 
Amortization of deferred policy acquisition costs— 268 465 779 
General operating and other expenses— 805 1,350 2,317 
Interest expense— 143 249 474 
Net (gain) loss on divestitures and other— 2 (191)(52)
Total benefits, losses and expenses— 3,041 7,325 12,749 
Income (loss) from discontinued operations before income tax expense (benefit) and loss on disposal of discontinued operations— 2,469 1,354 2,816 
Income tax expense (benefit)— 420 226 341 
Income (loss) from discontinued operations, net of income taxes before loss on disposal of discontinued operations— 2,049 1,128 2,475 
Loss on disposition of operations, net of tax(24)(3)(4,708)(3)
Income (loss) from discontinued operations, net of income taxes(24)2,046 (3,580)2,472 
Less: Net income (loss) from discontinued operations attributable to noncontrolling interests(2)720 475 801 
Net income (loss) from discontinued operations attributable to AIG$(22)$1,326 $(4,055)$1,671 
DISCONTINUED OPERATIONS LOSS PRESENTATION
The loss recognized in the second quarter of 2024 for the deconsolidation of Corebridge includes (i) $8.5 billion of retained investment in Corebridge (Corebridge’s quoted stock price is used for fair value measurement, which is classified as level 1 in the fair value hierarchy), (ii) $817 million of certain other investments (considered level 3 in the fair value hierarchy) which are measured based on valuation techniques (i.e., third party appraisals) that use significant inputs (i.e., terminal capital rate and discount rate), and (iii) $378 million of an unsettled receivable. For details on fair value hierarchy, see Note 5. The loss on deconsolidation of Corebridge is calculated as follows:
(in millions)
Corebridge retained investment (48.4% @28.90 per share at June 9, 2024)
$8,502 
Retained interest in certain investment entities and other assets1,195 
Net fair value of assets retained9,697 
Corebridge book value at June 9, 202412,392 
Less: Noncontrolling interests5,732 
Corebridge book value excluding noncontrolling interest6,660 
Gain on sale pre-tax3,037 
Tax expense507 
Subtotal: After tax gain 2,530 
Reclassification adjustment of Accumulated other comprehensive loss at June 9, 2024(7,214)
Loss on sale of Corebridge - after-tax$(4,684)