XML 31 R14.htm IDEA: XBRL DOCUMENT v3.24.3
Investments
 9 Months Ended
Sep. 30, 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
Gross
Unrealized
Losses
Fair
Value
September 30, 2024
Bonds available for sale:
U.S. government and government sponsored entities$4,488 $— $95 $(69)$4,514 
Obligations of states, municipalities and political subdivisions4,661 — 87 (97)4,651 
Non-U.S. governments9,187 (2)92 (544)8,733 
Corporate debt33,903 (25)808 (1,652)33,034 
Mortgage-backed, asset-backed and collateralized:
RMBS6,462 (6)256 (293)6,419 
CMBS4,127 (7)69 (83)4,106 
CLO/ABS4,536 — 43 (56)4,523 
Total mortgage-backed, asset-backed and collateralized15,125 (13)368 (432)15,048 
Total bonds available for sale(b)
$67,364 $(40)$1,450 $(2,794)$65,980 
December 31, 2023
Bonds available for sale:
U.S. government and government sponsored entities$4,444 $— $40 $(89)$4,395 
Obligations of states, municipalities and political subdivisions4,930 — 60 (157)4,833 
Non-U.S. governments8,973 (1)94 (670)8,396 
Corporate debt34,013 (20)606 (2,253)32,346 
Mortgage-backed, asset-backed and collateralized:
RMBS6,423 (9)219 (426)6,207 
CMBS4,326 (4)23 (198)4,147 
CLO/ABS5,010 — 31 (123)4,918 
Total mortgage-backed, asset-backed and collateralized15,759 (13)273 (747)15,272 
Total bonds available for sale(b)
$68,119 $(34)$1,073 $(3,916)$65,242 
(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 September 30, 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 $3.1 billion or 5 percent and $5.2 billion or 8 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
September 30, 2024
Bonds available for sale:
U.S. government and government sponsored entities$533 $2 $502 $67 $1,035 $69 
Obligations of states, municipalities and political subdivisions1,779 15 25 82 1,804 97 
Non-U.S. governments1,286 34 3,896 507 5,182 541 
Corporate debt10,953 100 7,554 1,533 18,507 1,633 
RMBS2,454 24 443 266 2,897 290 
CMBS1,568 6 121 75 1,689 81 
CLO/ABS1,389 12 45 44 1,434 56 
Total bonds available for sale$19,962 $193 $12,586 $2,574 $32,548 $2,767 
Less than 12 Months12 Months or MoreTotal
(in millions)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
December 31, 2023
Bonds available for sale:
U.S. government and government sponsored entities$1,027 $10 $804 $79 $1,831 $89 
Obligations of states, municipalities and political subdivisions850 24 1,602 133 2,452 157 
Non-U.S. governments1,431 87 4,503 583 5,934 670 
Corporate debt4,089 171 18,612 2,070 22,701 2,241 
RMBS1,456 114 2,385 300 3,841 414 
CMBS1,024 54 1,622 137 2,646 191 
CLO/ABS1,371 33 1,509 90 2,880 123 
Total bonds available for sale$11,248 $493 $31,037 $3,392 $42,285 $3,885 
At September 30, 2024, we held 10,479 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 8,111 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). At December 31, 2023, we held 13,052 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 10,027 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 September 30, 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:
September 30, 2024Total Fixed Maturity Securities
Available for Sale
(in millions)Amortized Cost,
Net of Allowance		Fair Value
Due in one year or less$4,626 $4,608 
Due after one year through five years25,918 25,593 
Due after five years through ten years16,595 16,180 
Due after ten years5,073 4,551 
Mortgage-backed, asset-backed and collateralized15,112 15,048 
Total$67,324 $65,980 
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 September 30,Nine Months Ended September 30,
2024202320242023
(in millions)Gross
Realized
Gains		Gross
Realized
Losses		Gross
Realized
Gains		Gross
Realized
Losses		Gross
Realized
Gains		Gross
Realized
Losses		Gross
Realized
Gains		Gross
Realized
Losses
Fixed maturity securities$11$95$3$159$54$408$121$736
For the three and nine months ended September 30, 2024, the aggregate fair value of available for sale securities sold was $1.9 billion and $6.9 billion, respectively, which resulted in net realized gains (losses) of $(84) million and $(354) million, respectively. Included within the net realized gains (losses) are $(18) million and $(34) million of net realized gains (losses) for the three and nine months ended September 30, 2024, 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.
For the three and nine months ended September 30, 2023, the aggregate fair value of available for sale securities sold was $2.5 billion and $13.2 billion, respectively, which resulted in net realized gains (losses) of $(156) million and $(615) million, respectively. Included within the net realized gains (losses) are $(4) million and $(63) million of net realized gains (losses) for the three and nine months ended September 30, 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)September 30, 2024December 31, 2023
Fair
Value		Percent
of Total		Fair
Value		Percent
of Total
Fixed maturity securities:
Obligations of states, municipalities and political subdivisions$52 3 %$51 4 %
Non-U.S. governments27 2 24 2 
Corporate debt299 20 255 19 
Mortgage-backed, asset-backed and collateralized:
RMBS107 7 93 7 
CMBS44 3 33 2 
CLO/ABS and other collateralized securities234 15 207 16 
Total mortgage-backed, asset-backed and collateralized
385 25 333 25 
Total fixed maturity securities763 50 663 50 
Equity securities767 50 665 50 
Total$1,530 100 %$1,328 100 %
OTHER INVESTED ASSETS
The following table summarizes the carrying amounts of other invested assets:
(in millions)September 30, 2024December 31, 2023
Alternative investments(a)
$4,334 $4,345 
Retained investment in Corebridge using fair value option8,143 — 
All other investments(b)
1,963 2,023 
Total$14,440 $6,368 
(a)At September 30, 2024, includes hedge funds of $187 million and private equity funds of $3.9 billion. At December 31, 2023, included hedge funds of $411 million and private equity funds of $3.7 billion. Private equity funds investments include limited partnerships, direct equities and real estate partnerships. Also includes investments in real estate, net of accumulated depreciation. At September 30, 2024 and December 31, 2023, the accumulated depreciation was $167 million and $161 million, respectively.
(b)All other investments include mainly bank deposits with a maturity greater than one year and investments in joint ventures with strategic partners.
NET INVESTMENT INCOME
The following table presents the components of Net investment income:
Three Months Ended September 30,20242023
(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$746 $25 $771 $731 $22 $753 
Other fixed maturity securities
4 16 20 (1)(4)(5)
Equity securities60 — 60 31 — 31 
Interest on mortgage and other loans52 9 61 73 10 83 
Alternative investments(a)
42 — 42 19 — 19 
Other investments(b)
63 1 64 43 1 44 
Total investment income967 51 1,018 896 29 925 
Investment expenses45 — 45 69 — 69 
Net investment income$922 $51 $973 $827 $29 $856 
Nine Months Ended September 30,20242023
(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$2,234 $67 $2,301 $2,085 $72 $2,157 
Other fixed maturity securities
— 27 27 1 3 4 
Equity securities144 — 144 93 — 93 
Interest on mortgage and other loans185 26 211 212 28 240 
Alternative investments(a)
129 (1)128 158 — 158 
Other investments(b)
262 4 266 51 3 54 
Total investment income2,954 123 3,077 2,600 106 2,706 
Investment expenses135 — 135 169 — 169 
Net investment income$2,819 $123 $2,942 $2,431 $106 $2,537 
(a)Includes income from hedge funds, private equity funds and real estate investments. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag.
(b)Includes dividends received from Corebridge and changes in its stock price of $65 million and $(35) million, respectively, for the three months ended September 30, 2024, and $133 million and $30 million, respectively, for the nine months ended September 30, 2024.
NET REALIZED GAINS AND LOSSES
The following table presents the components of Net realized gains (losses):
Three Months Ended September 30,20242023
(in millions)Excluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		TotalExcluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		Total
Sales of fixed maturity securities$(66)$(18)$(84)$(152)$(4)$(156)
Change in allowance for credit losses on fixed maturity securities1 (1)— (7)— (7)
Change in allowance for credit losses on loans(3)(1)(4)(16)3 (13)
Foreign exchange transactions65 1 66 (30)(5)(35)
All other derivatives and hedge accounting7 (2)5 (20)6 (14)
Sales of alternative investments(18)— (18)25 — 25 
Other22 3 25 11 (3)8 
Net realized gains (losses) – excluding Fortitude Re funds withheld embedded derivative8 (18)(10)(189)(3)(192)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative— (157)(157)— 57 57 
Net realized gains (losses)$8 $(175)$(167)$(189)$54 $(135)
Nine Months Ended September 30,20242023
(in millions)Excluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		TotalExcluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		Total
Sales of fixed maturity securities$(320)$(34)$(354)$(552)$(63)$(615)
Change in allowance for credit losses on fixed maturity securities(18)(1)(19)(31)— (31)
Change in allowance for credit losses on loans(23)— (23)(23)2 (21)
Foreign exchange transactions176 (2)174 125 — 125 
All other derivatives and hedge accounting(62)— (62)(133)— (133)
Sales of alternative investments(4)(1)(5)26 — 26 
Other13 — 13 17 (3)14 
Net realized gains (losses) – excluding Fortitude Re funds withheld embedded derivative(238)(38)(276)(571)(64)(635)
Net realized losses on Fortitude Re funds withheld embedded derivative— (158)(158)— (25)(25)
Net realized gains (losses)$(238)$(196)$(434)$(571)$(89)$(660)
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
September 30,		Nine Months Ended
September 30,
(in millions)2024202320242023
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities$1,616 $(670)$1,499 $159 
Other investments(19)— (58)— 
Total increase (decrease) in unrealized appreciation (depreciation) of investments*$1,597 $(670)$1,441 $159 
*Excludes net unrealized gains and losses attributable to businesses held for sale or reclassified to discontinued operations at September 30, 2024 and 2023.
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 September 30,20242023
(in millions)EquitiesOther Invested Assets*TotalEquitiesOther Invested AssetsTotal
Net gains recognized during the period on equity securities and other investments$60 $42 $102 $31 $46 $77 
Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period8 — 8 12 (8)4 
Unrealized gains recognized during the reporting period on equity securities and other investments still held at the reporting date$52 $42 $94 $19 $54 $73 
Nine Months Ended September 30,20242023
(in millions)EquitiesOther Invested Assets*TotalEquitiesOther Invested AssetsTotal
Net gains recognized during the period on equity securities and other investments$144 $234 $378 $93 $189 $282 
Less: Net gains recognized during the period on equity securities and other investments sold during the period51 24 75 88 1 89 
Unrealized gains recognized during the reporting period on equity securities and other investments still held at the reporting date$93 $210 $303 $5 $188 $193 
*Includes unrealized gains (losses) on AIG’s ownership interest in Corebridge of $(35) million and $30 million in the three and nine months ended September 30, 2024, respectively.
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 September 30,20242023
(in millions)StructuredNon-
Structured		TotalStructuredNon-
Structured		Total
Balance, beginning of period$6 $27 $33 $7 $27 $34
Additions:
Securities for which allowance for credit losses was not previously recorded2 — 2 2 19 21 
Reductions:
Securities sold during the period— — — (1)(6)(7)
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 basis4 (6)(2)2 (16)(14)
Write-offs charged against the allowance— — — —(2)(2)
Other— 7 7 1(3)(2)
Balance, end of period$12 $28 $40 $11 $19 $30 
Nine Months Ended September 30,20242023
(in millions)StructuredNon-
Structured		TotalStructuredNon-
Structured		Total
Balance, beginning of year$13 $21 $34 $20 $17 $37 
Additions:
Securities for which allowance for credit losses was not previously recorded3 9 12 4 47 51 
Reductions:
Securities sold during the period— — — (3)(9)(12)
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 basis(4)11 7 (1)(19)(20)
Write-offs charged against the allowance— (22)(22)(10)(13)(23)
Other— 9 9 1 (4)(3)
Balance, end of period$12 $28 $40 $11 $19 $30 
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 nine months ended September 30, 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)September 30, 2024December 31, 2023
Fixed maturity securities available for sale$—$106
At September 30, 2024 and December 31, 2023, amounts borrowed under repurchase and securities lending agreements totaled $0 million and $107 million, respectively.
The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity:
Remaining Contractual Maturity of the Agreements
(in millions)Overnight
and
Continuous		up to
30 days		31 - 90
days		91 - 364
days		365 days
or greater		Total
December 31, 2023
Bonds available for sale:
Non-U.S. governments$— $106 $— $— $— $106 
Corporate debt— — — — — — 
Total$— $106 $— $— $— $106 
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)September 30, 2024December 31, 2023
Securities collateral pledged to us$957 $1,200 
At September 30, 2024 and December 31, 2023, the carrying value of reverse repurchase agreements totaled $965 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 $8.2 billion and $8.4 billion at September 30, 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 $13 million and $15 million of stock in FHLBs at September 30, 2024 and December 31, 2023, respectively. In addition, our subsidiaries have pledged securities available for sale with a fair value of $1.7 billion at September 30, 2024 and $1.7 billion at December 31, 2023.
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 September 30, 2024 and December 31, 2023, respectively.
Reinsurance transactions between AIG and Fortitude Re were structured as modified coinsurance (modco) and loss portfolio transfer arrangements with funds withheld.