Employee Benefits

12 Months Ended

Dec. 31, 2025

Retirement Benefits [Abstract]

Employee Benefits

20. Employee Benefits

DEFINED CONTRIBUTION PLANS

AIG Parent sponsors several defined contribution plans for U.S. employees that provide for pre-tax salary reduction contributions by employees. The most significant plan is the AIG Incentive Savings Plan (ISP), for which the matching contribution is 100 percent of the first 6% of a participant’s contributions, subject to the IRS-imposed limitations. Participants in the AIG ISP receive an additional fully vested, non-elective, non-discretionary contribution equal to 3% of the participant’s eligible compensation for the plan year, paid each pay period regardless of whether the participant currently contributes to the plan, and subject to the IRS-imposed limitations. Our pre-tax expenses associated with these plans were $72 million,$87 million and $95 million in 2025, 2024 and 2023, respectively.

DEFINED BENEFIT PLANS

We offer various defined benefit plans to eligible employees. Effective January 1, 2016, the U.S. defined benefit plans were frozen. Consequently, these plans are closed to new participants and current participants no longer earn benefits.

Postretirement Plans

We provide certain medical and life insurance benefits to retired eligible employees (postretirement). Medical benefits are contributory, while the life insurance benefits, which are closed to new employees, are generally non-contributory. As of December 31, 2025 and 2024, the total unfunded benefit obligations associated with these plans were $106 million and $117 million, respectively, and the total net benefit expense for both periods was under $1 million.

Pension Plans

The U.S. AIG Retirement Plan (the qualified plan) is a noncontributory defined benefit plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). In 2012, the qualified plan was converted to a cash balance formula comprised of pay credits based on 6% of a plan participant’s annual compensation (subject to IRS limitations) and annual interest credits. Although benefits are frozen, these interest credits continue to accrue on the cash balance accounts of active participants, who also accrue years of service for purposes of early retirement eligibility and subsidies. Employees can take their vested benefits as a lump sum or an annuity option when they leave AIG or are terminated from the plan.

Employees satisfying certain age and service requirements (i.e., grandfathered employees) remain covered under the average pay formula that was in effect prior to the conversion. The final average pay formula is based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Grandfathered employees will receive the higher of the benefit under the cash balance formula or the final average pay formula at retirement.

In the U.S. we also sponsor non-qualified unfunded defined benefit plans, such as the AIG Non-Qualified Retirement Income Plan (AIG NQRIP) for certain employees, including key executives, designed to supplement pension benefits provided by the qualified plan. The AIG NQRIP provides a benefit equal to the reduction in benefits under the qualified plan as a result of federal tax limitations on compensation and benefits payable.

Non-U.S. defined benefit plans generally are either based on the employee’s years of credited service and compensation in the years preceding retirement or on points accumulated based on the employee’s job grade and other factors during each year of service.

The following table presents the funded status of the pension plans reconciled to the amount reported in the Consolidated Balance Sheets.

As of or for the Years Ended December 31,	U.S. Plans(a)				Non-U.S. Plans(a)
(in millions)		2025		2024		2025		2024
Change in projected benefit obligation:
Benefit obligation, beginning of year	$	2,962	$	3,301	$	747	$	804
Service cost		4		4		14		14
Interest cost		149		154		20		20
Actuarial (gain) loss(b)		40		(200)		(34)		14
Benefits paid:
AIG assets		(16)		(17)		(8)		(9)
Plan assets		(247)		(280)		(32)		(28)
Plan amendment		—		—		1		1
Settlements		—		—		(7)		(9)
Foreign exchange effect		—		—		34		(60)

As of or for the Years Ended December 31,	U.S. Plans(a)				Non-U.S. Plans(a)
(in millions)		2025		2024		2025		2024
Other		(1)		—		1		—
Projected benefit obligation, end of year	$	2,891	$	2,962	$	736	$	747
Change in plan assets:
Fair value of plan assets, beginning of year	$	2,976	$	3,228	$	704	$	734
Actual return on plan assets, net of expenses		236		28		16		35
AIG contributions		16		17		38		42
Benefits paid:
AIG assets		(16)		(17)		(8)		(9)
Plan assets		(247)		(280)		(32)		(28)
Settlements		—		—		(7)		(9)
Foreign exchange effect		—		—		24		(61)
Fair value of plan assets, end of year	$	2,965	$	2,976	$	735	$	704
Funded status, end of year	$	74	$	14	$	(1)	$	(43)
Amounts recognized in the balance sheet:
Assets	$	242	$	184	$	157	$	122
Liabilities		(168)		(170)		(158)		(165)
Total amounts recognized	$	74	$	14	$	(1)	$	(43)
Pre-tax amounts recognized in AOCI:
Net gain (loss)	$	(1,025)	$	(1,082)	$	(50)	$	(72)
Prior service (cost) credit		—		—		(16)		(18)
Total amounts recognized	$	(1,025)	$	(1,082)	$	(66)	$	(90)

(a)Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $168 million and $170 million for the U.S. at December 31, 2025 and 2024, respectively, and $138 million and $139 million for the non-U.S. at December 31, 2025 and 2024, respectively.

(b)The primary reason for the significant gain in 2024 is due to a change in the discount rate for the U.S. AIG Retirement Plan.

The following table presents the accumulated benefit obligations for U.S. and non-U.S. defined benefit pension plans:

At December 31,
(in millions)		2025		2024
U.S. pension benefit plans	$	2,891	$	2,962
Non-U.S. pension benefit plans	$	723	$	735

Defined benefit pension plan obligations in which the projected benefit obligation (PBO) was in excess of the related plan assets and the accumulated benefit obligation (ABO) was in excess of the related plan assets were as follows:

At December 31,	PBO Exceeds Fair Value of Plan Assets								ABO Exceeds Fair Value of Plan Assets
	U.S. Plans				Non-U.S. Plans				U.S. Plans				Non-U.S. Plans
(in millions)	2025		2024		2025		2024		2025		2024		2025		2024
Projected benefit obligation	$	168	$	170	$	284	$	287	$	—	$	—	$	—	$	—
Accumulated benefit obligation	—		—		—		—		168		170		243		245
Fair value of plan assets	—		—		97		91		—		—		97		91

The following table presents the components of net periodic benefit cost with respect to our pension plan benefits:

Years Ended December 31,	U.S. Plans						Non-U.S. Plans
(in millions)		2025		2024		2023		2025		2024		2023
Components of net periodic benefit cost:
Service cost*	$	4	$	4	$	5	$	14	$	14	$	16
Interest cost		149		154		168		20		20		20
Expected return on assets		(171)		(201)		(193)		(24)		(19)		(21)
Amortization of prior service cost (credit)		—		—		—		3		2		3
Amortization of net (gain) loss		33		33		33		2		2		2
Net periodic benefit cost (credit)	$	15	$	(10)	$	13	$	15	$	19	$	20
Settlement loss		—		—		71		(1)		1		—
Net benefit cost (credit)	$	15	$	(10)	$	84	$	14	$	20	$	20
Total recognized in AOCI	$	57	$	60	$	137	$	23	$	11	$	6
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	42	$	70	$	53	$	9	$	(9)	$	(14)

*Reflects administrative fees for the U.S. pension plans.

Interest cost for pension benefits for our U.S. plans and largest non-U.S. plans is measured using the spot rate approach, which applies specific spot rates along the yield curve to a plan’s corresponding discounted cash flows that comprise the obligation. This method provides a more precise measurement of interest cost by aligning the timing of the plans’ discounted cash flows to the corresponding spot rates on the yield curve. For certain non-U.S. plans, interest cost is measured utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligations.

A 100 basis point increase in the expected long-term rate of return would decrease the 2026 net pension expense by approximately $35 million with all other items remaining the same. A 100 basis point increase in the discount rate would increase the 2026 pension net expense by approximately $1 million. Conversely, a 100 basis point decrease in the discount rate would decrease the 2026 pension expense by approximately $4 million while a 100 basis point decrease in the expected long-term rate of return would increase the 2026 pension expense by approximately $35 million, with all other items remaining the same.

ASSUMPTIONS

The following table summarizes the weighted average assumptions used to determine the pension benefit obligations:

	U.S. Plans			Non-U.S. Plans(a)
December 31, 2025
Discount rate	5.40	%		3.58	%
Interest crediting rate	4.64	%		1.72	%	(b)
Rate of compensation increase	N/A		(c)	2.39	%
December 31, 2024
Discount rate	5.57	%		2.87	%
Interest crediting rate	4.37	%		1.36	%	(b)
Rate of compensation increase	N/A		(c)	2.43	%

(a)The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits.

(b)Represents the weighted average interest crediting rate of non-U.S. cash balance plans primarily in Japan and Switzerland.

(c)Compensation increases are no longer applicable as the plans are frozen effective January 1, 2016.

The following table presents the weighted average assumptions used to determine the net periodic benefit costs:

	U.S. Plans		Non-U.S. Plans(a)
For the Year Ended December 31, 2025
Discount rate	5.57	%	2.87	%
Interest crediting rate	4.37	%	1.36	%	(b)
Rate of compensation increase	N/A		2.43	%
Expected return on assets	6.00	%	3.25	%
For the Year Ended December 31, 2024
Discount rate	4.98	%	2.85	%
Interest crediting rate	4.94	%	1.40	%	(b)
Rate of compensation increase	N/A		2.42	%
Expected return on assets	6.50	%	2.77	%
For the Year Ended December 31, 2023
Discount rate	5.22	%	2.51	%
Interest crediting rate	4.02	%	1.07	%	(b)
Rate of compensation increase	N/A		2.38	%
Expected return on assets	6.25	%	2.67	%

(a)The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits.

(b)Represents the weighted average interest crediting rate of non-U.S. cash balance plans primarily in Japan and Switzerland.

Discount Rate Methodology

The projected benefit cash flows under the U.S. AIG Retirement Plan were discounted using the spot rates derived from the Mercer U.S. Pension Discount Yield Curve (Mercer Yield Curve) at December 31, 2025 and 2024, which resulted in a single discount rate that would produce the same liability at the respective measurement dates. The discount rates were 5.40 percent at December 31, 2025 and 5.57 percent at December 31, 2024. The methodology was consistently applied for the respective years in determining the discount rates for the other U.S. pension plans.

In general, the discount rates for the non-U.S. plans were developed using a similar methodology to the U.S. AIG Retirement Plan, by using country-specific Mercer Yield Curves.

The projected benefit obligation for AIG’s Japan pension plans represents approximately 49 percent and 50 percent of the total projected benefit obligations for our non-U.S. pension plans at December 31, 2025 and 2024, respectively. The weighted average discount rate of 2.72 percent and 1.81 percent at December 31, 2025 and 2024, respectively, was selected by reference to the Mercer Yield Curve for Japan.

Plan Assets

The investment strategy with respect to assets relating to our U.S. and non-U.S. pension plans is designed to achieve investment returns that will provide for the benefit obligations of the plans over the long term, limit the risk of short-term funding shortfalls and maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including, but not limited to, volatility relative to the benefit obligations, liquidity, and concentration, and incorporates the risk/return profile applicable to each asset class.

There were no shares of AIG Common Stock included in the U.S. and non-U.S. pension plans assets at December 31, 2025 or 2024.

U.S. Pension Plan

The assets of the qualified plan are monitored by the AIG U.S. Investment Committee and actively managed by the investment managers, which involves allocating the plan’s assets among approved asset classes within ranges as permitted by the strategic allocation. The long-term strategic asset allocation historically has been reviewed and revised approximately every three years. The investment strategy is focused on de-risking the qualified plan via regular monitoring through liability driven investing and the glide path approach, where the glide path defines the target allocation for the “Return-Seeking” portion of the portfolio (i.e., growth assets) based on the funded ratio and level of interest rates. Under this approach, the allocation to growth assets is reduced and the allocation to liability-hedging assets is increased as the plan’s funded ratio increases in accordance with the defined glide path.

The following table presents the asset allocation percentage by major asset class for the U.S. qualified plan and the target allocation for 2026 based on the plan’s funded status at December 31, 2025:

At December 31,	Target 2026		Actual 2025		Actual 2024
Asset class:
Equity securities	8	%	13	%	13	%
Fixed maturity securities	80		74		72
Other investments	12		13		15
Total	100	%	100	%	100	%

The expected weighted average long-term rate of return for the plan was 6.00 percent and 6.50 percent for 2025 and 2024, respectively. The expected weighted average rate of return is an aggregation of expected returns within each asset class category, weighted for the investment mix of the assets. The combination of the expected asset return and any contributions made by us are expected to maintain the plan’s ability to meet all required benefit obligations. The expected asset return for each asset class was developed based on an approach that considers key fundamental drivers of the asset class returns in addition to historical returns, current market conditions, asset volatility and the expectations for future market returns.

Non-U.S. Pension Plans

The assets of the non-U.S. pension plans are held in various trusts in multiple countries and are invested primarily in equities and fixed maturity securities to maximize the long-term return on assets for a given level of risk.

The following table presents the asset allocation percentage by major asset class for non-U.S. pension plans and the target allocation:

At December 31,	Target 2026		Actual 2025		Actual 2024
Asset class:
Equity securities	20	%	19	%	20	%
Fixed maturity securities	59		47		47
Other investments	17		21		24
Cash and cash equivalents	4		13		9
Total	100	%	100	%	100	%

The assets of AIG’s Japan pension plans represent approximately 66 percent and 66 percent of total non-U.S. pension plan assets at December 31, 2025 and 2024, respectively. The expected long-term rate of return was 2.79 percent and 1.85 percent for 2025 and 2024, respectively, and is evaluated by the Japanese Pension Investment Committee on a quarterly and annual basis along with various investment managers and is revised to achieve the optimal allocation to meet targeted funding levels if necessary. In addition, the funding policy is revised in accordance with local regulation every five years.

The expected weighted average long-term rate of return for all our non-U.S. pension plans was 3.25 percent and 2.77 percent for the years ended December 31, 2025 and 2024, respectively. It is an aggregation of expected returns within each asset class that was generally developed based on the building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns.

ASSETS MEASURED AT FAIR VALUE

The following table presents information about our plan assets and indicates the level of the fair value measurement based on the observability of the inputs used. The inputs and methodology used in determining the fair value of these assets are consistent with those used to measure our assets as discussed in Note 5 to the Consolidated Financial Statements.

	U.S. Plans								Non-U.S. Plans
(in millions)		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
December 31, 2025
Assets:
Cash and cash equivalents	$	57	$	—	$	—	$	57	$	97	$	—	$	—	$	97
Equity securities:
U.S.(a)		385		—		—		385		—		—		—		—
International(b)		3		—		—		3		83		57		—		140
Fixed maturity securities:
U.S. investment grade(c)		—		2,018		50		2,068		—		—		—		—
International investment grade(c)		—		79		—		79		—		153		—		153
U.S. and international high yield(d)		—		(28)		—		(28)		—		192		—		192
Mortgage and other asset-backed securities		—		63		—		63		—		—		—		—
Other investment types(e):
Futures		—		—		(3)		(3)		—		—		—		—
Direct private equity(f)		—		—		12		12		—		—		—		—
Insurance contracts		—		6		—		6		—		—		143		143
Mutual funds(f)		—		—		—		—		—		10		—		10
Total	$	445	$	2,138	$	59	$	2,642	$	180	$	412	$	143	$	735
December 31, 2024
Assets:
Cash and cash equivalents	$	52	$	—	$	—	$	52	$	66	$	—	$	—	$	66
Equity securities:
U.S.(a)		163		—		—		163		—		—		—		—
International(b)		4		—		—		4		82		55		—		137
Fixed maturity securities:
U.S. investment grade(c)		22		1,996		5		2,023		—		—		—		—
International investment grade(c)		—		101		—		101		—		146		—		146
U.S. and international high yield(d)		—		(40)		—		(40)		—		185		—		185
Mortgage and other asset-backed securities		—		54		1		55		—		—		—		—
Other fixed maturity securities		—		9		—		9		—		—		—		—
Other investment types(e):
Futures		(7)		—		—		(7)		—		—		—		—
Insurance contracts		—		8		—		8		—		—		161		161
Mutual funds(f)		—		—		—		—		—		9		—		9
Total	$	234	$	2,128	$	6	$	2,368	$	148	$	395	$	161	$	704

(a)Includes passive and active U.S. equity strategies.

(b)Includes passive and active international equity strategies.

(c)Includes investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds.

(d)Consists primarily of investments in securities or debt obligations that have a rating below investment grade.

(e)Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $323 million and $608 million at December 31, 2025 and 2024, respectively.

(f)Comprised of mutual fund investing in variety of equity, derivatives, and bonds.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we had no significant concentrations of risks at December 31, 2025.

Changes in Level 3 Fair Value Measurements

The following table presents changes in our U.S. and non-U.S. Level 3 plan assets measured at fair value:

December 31, 2025	Balance Beginning of year		Net Realized and Unrealized Gains (Losses)		Purchases		Sales		Transfers In		Transfers Out		Balance at End of Year		Changes in Unrealized Gains (Losses) on Instruments Held at End of Year
(in millions)
U.S. Plan Assets:
Fixed maturity securities
U.S. investment grade	$	5	$	3	$	94	$	(178)	$	130	$	(4)	$	50	$	27
Mortgage and other asset backed securities	1		—		—		—		—		(1)		—		—
Futures	—		—		—		(3)		—		—		(3)		—
Direct private equity	—		(1)		62		(58)		9		—		12		11
Total	$	6	$	2	$	156	$	(239)	$	139	$	(5)	$	59	$	38
Non-U.S. Plan Assets:
Insurance contracts	$	161	$	(14)	$	(4)	$	—	$	—	$	—	$	143	$	—
Total	$	161	$	(14)	$	(4)	$	—	$	—	$	—	$	143	$	—
December 31, 2024
U.S. Plan Assets:
Fixed maturity securities
U.S. investment grade	$	10	$	(1)	$	—	$	(3)	$	—	$	(1)	$	5	$	—
Mortgage and other asset backed securities	1		—		—		—		—		—		1		—
Total	$	11	$	(1)	$	—	$	(3)	$	—	$	(1)	$	6	$	—
Non-U.S. Plan Assets:
Insurance contracts	$	138	$	21	$	2	$	—	$	—	$	—	$	161	$	—
Total	$	138	$	21	$	2	$	—	$	—	$	—	$	161	$	—

EXPECTED CASH FLOWS

Funding for the qualified plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. There are no minimum required cash contributions in 2025 for the U.S. AIG Retirement Plan. The non-qualified and postretirement plans’ benefit payments are deductible when paid to participants.

Our combined pension contribution in 2026 is expected to be approximately $54 million for our U.S. and non-U.S. pension plans. This estimate is subject to change, since contribution decisions are affected by various factors including our liquidity, market performance and management’s discretion.

The expected future benefit payments, net of participants’ contributions, with respect to the defined benefit pension plans are as follows:

(in millions)	U.S. Plans		Non-U.S. Plans
2026	$	253	$	41
2027	259		41
2028	255		46
2029	257		47
2030	245		49
2031-2035	1,100		255