SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2021

SEGMENT INFORMATION

SEGMENT INFORMATION

3. Segment Information

We report our results of operations consistent with the manner in which our chief operating decision makers review the business to assess performance and allocate resources, as follows:

General Insurance

General Insurance business is presented as two operating segments:

 North America – consists of insurance businesses in the United States, Canada and Bermuda, and our global reinsurance business, AIG Re. This also includes the results of Western World Insurance Group, Inc. and Glatfelter Insurance Group.

 International – consists of regional insurance businesses in Japan, the United Kingdom, Europe, Middle East and Africa (EMEA region), Asia Pacific, Latin America and Caribbean, and China. International also includes the results of Talbot Holdings, Ltd. as well as AIG’s Global Specialty business.

North America and International operating segments consist of the following products:

– Commercial Lines – consists of Liability, Financial Lines, Property, Global Specialty and Crop Risk Services.

– Personal Insurance – consists of Personal Lines and Accident & Health.

Life and Retirement

Life and Retirement business is presented as four operating segments:

 Individual Retirement – consists of fixed annuities, fixed index annuities, variable annuities and retail mutual funds.

 Group Retirement – consists of record-keeping, plan administrative and compliance services, financial planning and advisory solutions offered to employer-defined contribution plan participants, along with proprietary and non-proprietary annuities and advisory and brokerage products offered outside of plans.

 Life Insurance – primary products in the U.S. include term life and universal life insurance. International operations primarily include distribution of life and health products in the UK and Ireland.

 Institutional Markets – consists of stable value wrap products, structured settlement and pension risk transfer annuities, corporate- and bank-owned life insurance, high net worth products and guaranteed investment contracts (GICs).

For additional information on the Life and Retirement business, see Note 1.

Other Operations

Other Operations primarily consists of income from assets held by AIG Parent and other corporate subsidiaries, deferred tax assets related to tax attributes, corporate expenses and intercompany eliminations, our institutional asset management business and results of our consolidated investment entities, General Insurance portfolios in run-off as well as the historical results of our legacy insurance lines ceded to Fortitude Re.

The accounting policies of the segments are the same as those described in Note 2. We evaluate segment performance based on adjusted revenues and adjusted pre-tax income (loss). Adjusted revenues and adjusted pre-tax income (loss) are derived by excluding certain items from total revenues and net income (loss) attributable to AIG, respectively. These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and measures that we believe to be common to the industry. Legal entities are attributed to each segment based upon the predominance of activity in that legal entity. For the items excluded from adjusted revenues and adjusted pre-tax income (loss) see the table below.

The following table presents AIG’s continuing operations by operating segment:

										Adjusted
				Net						Pre-tax
	Adjusted			Investment		Interest	Amortization			Income
(in millions)		Revenues		Income		Expense		of DAC		(Loss)
2021
General Insurance
North America	$	10,989			$	-	$	1,333	$	(47)	(a)
International		14,068				-		2,197		1,102	(a)
Net investment income		3,304	$	3,304		-		-		3,304
Total General Insurance		28,361		3,304		-		3,530		4,359
Life and Retirement
Individual Retirement		6,083		4,338		61		736		1,939
Group Retirement		3,291		2,410		35		61		1,284
Life Insurance		5,112		1,619		25		170		106
Institutional Markets		5,108		1,154		9		6		582
Total Life and Retirement		19,594		9,521		130		973		3,911
Other Operations
Other Operations before consolidation and eliminations		1,338		1,112		1,220		37		(1,418)
AIG consolidation and eliminations		(991)		(996)		(65)		-		(932)
Total Other Operations		347		116		1,155		37		(2,350)
Total		48,302		12,941		1,285		4,540		5,920
Reconciling items to pre-tax income:
Changes in fair value of securities used to hedge guaranteed
living benefits		60		60		-		-		61
Changes in benefit reserves and DAC, VOBA and DSI related to
net realized gains (losses)		-		-		-		33		(52)
Changes in the fair value of equity securities		(237)		(237)		-		-		(237)
Other income (expense) - net		(24)		33		33		-		-
Loss on extinguishment of debt		-		-		-		-		(389)
Net investment income on Fortitude Re funds withheld assets		1,971		1,971		-		-		1,971
Net realized gains (losses) on Fortitude Re funds withheld assets		1,003		-		-		-		1,003
Net realized gains (losses) on Fortitude Re funds withheld
embedded derivative		(603)		-		-		-		(603)
Net realized gains (losses)(b)		1,585		(156)		(13)		-		1,623
Net gain on divestitures		-		-		-		-		3,044
Non-operating litigation reserves and settlements		-		-		-		-		(3)
Favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		-		-		-		186
Net loss reserve discount benefit		-		-		-		-		193
Pension expense related to lump sum payments to former employees		-		-		-		-		(34)
Integration and transaction costs associated with acquiring or divesting
businesses		-		-		-		-		(83)
Restructuring and other costs		-		-		-		-		(433)
Non-recurring costs related to regulatory or accounting changes		-		-		-		-		(68)
Revenues and pre-tax income	$	52,057	$	14,612	$	1,305	$	4,573	$	12,099
2020
General Insurance
North America	$	10,302			$	-	$	1,365	$	(1,301)	(a)
International		13,360				-		2,173		277	(a)
Net investment income		2,925	$	2,925		-		-		2,925
Total General Insurance		26,587		2,925		-		3,538		1,901
Life and Retirement
Individual Retirement		5,714		4,131		72		590		1,938
Group Retirement		2,970		2,236		42		7		1,013
Life Insurance		4,877		1,526		30		30		142
Institutional Markets		3,714		988		11		5		438
Total Life and Retirement		17,275		8,881		155		632		3,531

Other Operations
Other Operations before consolidation and eliminations		1,385		1,087		1,306		50		(1,963)
AIG consolidation and eliminations		(562)		(572)		(70)		-		(466)
Total Other Operations		823		515		1,236		50		(2,429)
Total		44,685		12,321		1,391		4,220		3,003
Reconciling items to pre-tax income (loss):
Changes in fair value of securities used to hedge guaranteed
living benefits		56		56		-		-		41
Changes in benefit reserves and DAC, VOBA and DSI related to
net realized gains (losses)		-		-		-		(9)		12
Changes in the fair value of equity securities		200		200		-		-		200
Other income (expense) - net		49		99		99		-		-
Loss on extinguishment of debt		-		-		-		-		(12)
Net investment income on Fortitude Re funds withheld assets		1,053		1,053		-		-		1,053
Net realized gains on Fortitude Re funds withheld assets		463		-		-		-		463
Net realized losses on Fortitude Re funds withheld
embedded derivative		(2,645)		-		-		-		(2,645)
Net realized losses(b)		(148)		(98)		(33)		-		(97)
Net loss on divestitures		-		-		-		-		(8,525)
Non-operating litigation reserves and settlements		23		-		-		-		21
Favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		-		-		-		221
Net loss reserve discount charge		-		-		-		-		(516)
Integration and transaction costs associated with acquiring or divesting
businesses		-		-		-		-		(12)
Restructuring and other costs		-		-		-		-		(435)
Non-recurring costs related to regulatory or accounting changes		-		-		-		-		(65)
Revenues and pre-tax income (loss)	$	43,736	$	13,631	$	1,457	$	4,211	$	(7,293)
2019
General Insurance
North America	$	12,136			$	-	$	1,923	$	(365)	(a)
International		14,302				-		2,559		454	(a)
Net investment income		3,444	$	3,444		-		-		3,444
Total General Insurance		29,882		3,444		-		4,482		3,533
Life and Retirement
Individual Retirement		5,643		4,122		77		449		1,977
Group Retirement		2,947		2,240		44		81		937
Life Insurance		4,825		1,483		30		137		331
Institutional Markets		2,941		888		11		5		308
Total Life and Retirement		16,356		8,733		162		672		3,553
Other Operations
Other Operations before consolidation and eliminations		3,060		2,598		1,260		64		(1,312)
AIG consolidation and eliminations		(388)		(385)		(55)		-		(304)
Total Other Operations		2,672		2,213		1,205		64		(1,616)
Total		48,910		14,390		1,367		5,218		5,470
Reconciling items to pre-tax income:
Changes in fair value of securities used to hedge guaranteed
living benefits		228		228		-		-		194
Changes in benefit reserves and DAC, VOBA and DSI related to
net realized gains (losses)		-		-		-		(54)		56
Changes in the fair value of equity securities		158		158		-		-		158
Other income (expense) - net		46		85		87		-		-
Loss on extinguishment of debt		-		-		-		-		(32)
Net realized gains (losses)(b)		395		(242)		(37)		-		456
Net loss on divestitures		-		-		-		-		(75)
Non-operating litigation reserves and settlements		9		-		-		-		2
Favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		-		-		-		267
Net loss reserve discount charge		-		-		-		-		(955)
Integration and transaction costs associated with acquiring or divesting
businesses		-		-		-		-		(24)
Restructuring and other costs		-		-		-		-		(218)
Non-recurring costs related to regulatory or accounting changes		-		-		-		-		(12)
Revenues and pre-tax income	$	49,746	$	14,619	$	1,417	$	5,164	$	5,287

(a) General Insurance North America’s and General Insurance International’s Adjusted pre-tax income does not include Net investment income as the investment portfolio results are managed at the General Insurance level. Net investment income is shown separately as a component of General Insurance’s total Adjusted pre-tax income results.

(b) Includes all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets).

The following table presents AIG’s year-end identifiable assets and capital expenditures by segment:

	Year-End Identifiable Assets				Capital Expenditures
(in millions)		2021		2020*		2021		2020
General Insurance	$	159,000	$	155,751	$	76	$	156
Life and Retirement		406,104		397,749		62		107
Other Operations		31,008		32,981		205		90
Total Assets	$	596,112	$	586,481	$	343	$	353

*Certain reclassifications have been made to the prior year amounts for consistency with the current year presentation.The following table presents AIG’s consolidated total revenues and real estate and other fixed assets, net of accumulated depreciation, by major geographic area:

							Real Estate and Other Fixed Assets,
	Total Revenues*						Net of Accumulated Depreciation
(in millions)		2021		2020		2019		2021		2020		2019
North America	$	37,224	$	30,204	$	36,930	$	1,212	$	1,230	$	1,333
International		14,833		13,532		12,816		500		610		620
Consolidated	$	52,057	$	43,736	$	49,746	$	1,712	$	1,840	$	1,953

*Revenues are generally reported according to the geographic location of the segment. International revenues consists of revenues from our General Insurance International operating segment.