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Discontinued Operations Presentation
 12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Presentation
4. Discontinued Operations Presentation
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.
Pre-Deconsolidation of Corebridge
Corebridge completed its initial public offering in September 2022 and AIG continued to sell its interest in Corebridge through secondary offerings. On May 16, 2024, AIG entered into a stock purchase agreement with Corebridge and Nippon Life Insurance Company (Nippon). 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.
Deconsolidation of Corebridge
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.
In the second quarter of 2024, AIG recognized a loss of $4.8 billion as a result of the deconsolidation, mainly due to the recognition of an accumulated comprehensive loss of $7.2 billion. The loss is recorded as a component of discontinued operations.
The historical financial results of Corebridge, for all periods presented, are reflected in these Consolidated Financial Statements as discontinued operations. In addition, the assets and liabilities of Corebridge are classified as Assets of discontinued operations and Liabilities of discontinued operations in AIG’s Consolidated Balance Sheets as of December 31, 2023.
Post Deconsolidation of Corebridge
Subsequent to the Deconsolidation Date, AIG elected the fair value option and reflects its retained interest in Corebridge as an equity method investment in Other invested assets 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.
From August 2024 to November 2024, AIG sold approximately 43 million shares of Corebridge common stocks. The aggregate proceeds received from these transactions were approximately $1.3 billion.
On December 9, 2024, AIG completed the sale of approximately 120 million shares of its Corebridge common stock, representing a 21.6 percent ownership stake, to Nippon for $31.47 per share for an aggregate purchase price of $3.8 billion, which resulted in a $282 million gain recognized in Net investment income in the fourth quarter of 2024.
Due to share repurchases by Corebridge and sale of shares by AIG after the Deconsolidation Date, as of December 31, 2024, AIG held 22.7 percent of the outstanding common stock of Corebridge.
The following provides Corebridge's pre-tax income for the period June 10, 2024 to December 31, 2024, as well as our equity method income (representing the sum of dividends received and changes in its stock price since June 9, 2024).
(in millions)
Corebridge pre-tax income$1,574 
Equity method income (loss) related to Corebridge (based on fair value)$601 
The following table summarizes the components of assets and liabilities of discontinued operations on the Consolidated Balance Sheets at December 31, 2023:
December 31, 2023
Assets:
Investments:
Fixed maturity securities:
Bonds available for sale, at fair value, net of allowance for credit losses$166,657 
Other bond securities, at fair value4,579 
Equity securities, at fair value63 
Mortgage and other loans receivable, net of allowance for credit losses46,732 
Other invested assets9,916 
Short-term investments
4,346 
Total investments232,293 
Cash618 
Accrued investment income2,011 
Premiums and other receivables, net of allowance for credit losses and disputes709 
Reinsurance assets - Fortitude Re, net of allowance for credit losses and disputes26,772 
Reinsurance assets - other, net of allowance for credit losses and disputes2,519 
Deferred income taxes8,307 
Deferred policy acquisition costs10,782 
Market risk benefit assets, at fair value912 
Other assets, net of allowance for credit losses(a)
2,820 
Separate account assets, at fair value91,005 
Total assets held for sale/assets of discontinued operations$378,748 
Liabilities:
Unearned premiums$65 
Future policy benefits 57,946 
Policyholder contract deposits161,979 
Market risk benefit liabilities, at fair value5,705 
Other policyholder funds2,862 
Fortitude Re funds withheld payable25,957 
Other liabilities8,790 
Short-term and long-term debt9,420 
Debt of consolidated investment entities2,360 
Separate account liabilities91,005 
Total liabilities held for sale/liabilities of discontinued operations$366,089 
(a)Other assets, net of allowance for credit losses includes goodwill and other intangibles of $116 million and $3 million, respectively, 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:
Years Ended December 31,
(in millions)202420232022
Revenues:
Premiums$2,723 $7,690 $5,091 
Policy fees1,269 2,797 2,913 
Net investment income5,238 11,146 9,398 
Net realized gains (losses)(923)(3,530)6,236 
Other income372 761 816 
Total revenues8,679 18,864 24,454 
Benefits, losses and expenses:
Policyholder benefits and losses incurred3,618 9,362 6,715 
Change in the fair value of market risk benefits, net(350)2 (960)
Interest credited to policyholder account balances2,184 4,424 3,746 
Amortization of deferred policy acquisition costs465 1,037 1,013 
General operating and other expenses1,350 3,100 2,962 
Interest expense249 620 522 
Net (gain) loss on divestitures and other(191)(672)(71)
Total benefits, losses and expenses7,325 17,873 13,927 
Income (loss) from discontinued operations before income tax expense (benefit) and loss on disposal of discontinued operations1,354 991 10,527 
Income tax expense (benefit)226 (146)2,144 
Income (loss) from discontinued operations, net of income taxes before loss on disposal of discontinued operations1,128 1,137 8,383 
Loss on disposition of operations, net of tax(4,754)— — 
Income (loss) from discontinued operations, net of income taxes(3,626)1,137 8,383 
Less: Net income (loss) from discontinued operations attributable to noncontrolling interests478 235 1,046 
Net income (loss) from discontinued operations attributable to AIG$(4,104)$902 $7,337 
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, as of December 31, 2024, is calculated as follows:
(in millions)
Corebridge retained investment (294.2 million shares at $28.90 per share at June 9, 2024)
$8,502 
Retained interest in certain investment entities and other assets1,180 
Net fair value of assets retained9,682 
Corebridge book value12,409 
Less: Noncontrolling interests5,732 
Corebridge book value excluding noncontrolling interests6,677 
Pre-tax gain on sale3,005 
Tax expense545 
Subtotal: After tax gain on sale before reclassification adjustment2,460 
Reclassification adjustment of Accumulated other comprehensive loss(7,214)
After-tax loss on sale of Corebridge$(4,754)