Discontinued Operations Presentation

12 Months Ended

Dec. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

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.

Deconsolidation of Corebridge

On June 9, 2024 (the Deconsolidation Date), 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 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 was recorded as a component of discontinued operations.

The historical financial results of Corebridge are reflected in these Consolidated Financial Statements as discontinued operations.

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.

In August and September 2025, we sold an aggregate of approximately 31.2 million shares of Corebridge common stock at a public offering price of $33.65 per share, which included 30 million shares initially offered and the partial exercise by the underwriters of their option to purchase additional shares. The aggregate proceeds to AIG Parent were approximately $1.0 billion.

In November 2025, we sold 32.6 million shares of Corebridge common stock at a public offering price of $31.10 per share. The aggregate proceeds to AIG Parent were approximately $1.0 billion. Corebridge purchased approximately $500 million of common stock from the underwriter at the same per share price, paid by the underwriter to us, net of underwriting discounts and commissions.

Due to share repurchases by Corebridge and the sale of shares by AIG after the Deconsolidation Date, as of December 31, 2025, AIG held 10.1 percent of the outstanding common stock of Corebridge.

On February 10, 2026, Nippon Life Insurance Company (Nippon) agreed to waive the transfer restriction set forth in the Stock Purchase Agreement, dated May 16, 2024, by and among AIG, Nippon and Corebridge, pursuant to which AIG was restricted from owning less than 9.9 percent of Corebridge’s issued and outstanding common stock at any time prior to December 9, 2026.

The following provides Corebridge's pre-tax income as well as our equity method income (representing the sum of dividends received and changes in Corebridge's stock price).


Years Ended December 31,
(in millions)	2025		2024
Corebridge pre-tax income (loss)	$	(541)	$	1,574
Equity method income related to Corebridge (based on fair value)	$	277	$	601

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)	2024		2023
Revenues:
Premiums	$	2,723	$	7,690
Policy fees	1,269		2,797
Net investment income	5,238		11,146
Net realized losses	(923)		(3,530)
Other income	372		761
Total revenues	8,679		18,864
Benefits, losses and expenses:
Policyholder benefits and losses incurred	3,618		9,362
Change in the fair value of market risk benefits, net	(350)		2
Interest credited to policyholder account balances	2,184		4,424
Amortization of deferred policy acquisition costs	465		1,037
General operating and other expenses	1,350		3,100
Interest expense	249		620
Net gain on divestitures and other	(191)		(672)
Total benefits, losses and expenses	7,325		17,873
Income from discontinued operations before income tax expense and loss on disposal of discontinued operations	1,354		991
Income tax expense (benefit)	226		(146)
Income from discontinued operations, net of income taxes before loss on disposal of discontinued operations	1,128		1,137
Loss on disposition of operations, net of tax	(4,754)		—
Income (loss) from discontinued operations, net of income taxes	(3,626)		1,137
Less: Net income from discontinued operations attributable to noncontrolling interests	478		235
Net income (loss) from discontinued operations attributable to AIG	$	(4,104)	$	902

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 assets	1,180

Net fair value of assets retained	9,682

Corebridge book value	12,409
Less: Noncontrolling interests	5,732
Corebridge book value excluding noncontrolling interests	6,677

Pre-tax gain on sale	3,005
Tax expense	545
Subtotal: After tax gain on sale before reclassification adjustment	2,460
Reclassification adjustment of Accumulated other comprehensive loss	(7,214)
After-tax loss on sale of Corebridge	$	(4,754)