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Investments
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments 5. 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
March 31, 2023
Bonds available for sale:
U.S. government and government sponsored entities$5,995 $— $49 $(289)$5,755 
Obligations of states, municipalities and political subdivisions12,344 — 161 (857)11,648 
Non-U.S. governments14,928 (10)109 (1,595)13,432 
Corporate debt157,227 (81)1,542 (20,117)138,571 
Mortgage-backed, asset-backed and collateralized:
RMBS20,230 (37)778 (1,368)19,603 
CMBS16,278 (8)21 (1,417)14,874 
CLO/ABS27,177 — 66 (1,729)25,514 
Total mortgage-backed, asset-backed and collateralized63,685 (45)865 (4,514)59,991 
Total bonds available for sale(b)
$254,179 $(136)$2,726 $(27,372)$229,397 
December 31, 2022
Bonds available for sale:
U.S. government and government sponsored entities$7,094 $— $21 $(496)$6,619 
Obligations of states, municipalities and political subdivisions13,195 — 99 (1,195)12,099 
Non-U.S. governments15,133 (6)91 (1,733)13,485 
Corporate debt160,242 (132)1,152 (23,423)137,839 
Mortgage-backed, asset-backed and collateralized:
RMBS19,584 (37)807 (1,537)18,817 
CMBS15,610 (11)14 (1,420)14,193 
CLO/ABS25,135 — 38 (2,069)23,104 
Total mortgage-backed, asset-backed and collateralized60,329 (48)859 (5,026)56,114 
Total bonds available for sale(b)
$255,993 $(186)$2,222 $(31,873)$226,156 
(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 Other comprehensive income (loss).
(b)At March 31, 2023 and December 31, 2022, the fair value of bonds available for sale held by us that were below investment grade or not rated totaled $19.6 billion or 9 percent and $22.3 billion or 10 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
March 31, 2023
Bonds available for sale:
U.S. government and government sponsored entities$3,573 $275 $256 $14 $3,829 $289 
Obligations of states, municipalities and political subdivisions6,907 832 317 25 7,224 857 
Non-U.S. governments10,501 1,574 442 16 10,943 1,590 
Corporate debt92,595 15,340 25,579 4,739 118,174 20,079 
RMBS9,238 900 2,786 375 12,024 1,275 
CMBS10,228 912 3,333 494 13,561 1,406 
CLO/ABS13,672 816 8,344 913 22,016 1,729 
Total bonds available for sale$146,714 $20,649 $41,057 $6,576 $187,771 $27,225 
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, 2022
Bonds available for sale:
U.S. government and government sponsored entities$3,493 $368 $1,816 $128 $5,309 $496 
Obligations of states, municipalities and political subdivisions8,697 1,180 73 15 8,770 1,195 
Non-U.S. governments10,702 1,526 779 191 11,481 1,717 
Corporate debt110,683 19,756 13,778 3,609 124,461 23,365 
RMBS10,953 1,293 1,005 182 11,958 1,475 
CMBS11,620 1,094 1,728 326 13,348 1,420 
CLO/ABS16,852 1,388 4,307 681 21,159 2,069 
Total bonds available for sale$173,000 $26,605 $23,486 $5,132 $196,486 $31,737 
At March 31, 2023, we held 34,040 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 5,745 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). At December 31, 2022, we held 36,549 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 4,048 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 March 31, 2023 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:
Total Fixed Maturity Securities
Available for Sale
(in millions)Amortized Cost,
Net of Allowance		Fair Value
March 31, 2023
Due in one year or less$9,146 $9,053 
Due after one year through five years47,843 45,864 
Due after five years through ten years43,027 39,247 
Due after ten years90,387 75,242 
Mortgage-backed, asset-backed and collateralized63,640 59,991 
Total$254,043 $229,397 
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 March 31,
20232022
(in millions)Gross
Realized
Gains		Gross
Realized
Losses		Gross
Realized
Gains		Gross
Realized
Losses
Fixed maturity securities$146$598$97$236
For the three-month periods ended March 31, 2023 and 2022, the aggregate fair value of available for sale securities sold was $10.8 billion and $4.8 billion, respectively, which resulted in net realized gains (losses) of $(452) million and $(139) million, respectively. Included within the net realized gains (losses) are $(65) million and $(32) million of net realized gains (losses) for the three-month periods ended March 31, 2023 and 2022, 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)March 31, 2023December 31, 2022
Fair
Value		Percent
of Total		Fair
Value		Percent
of Total
Fixed maturity securities:
U.S. government and government sponsored entities$1 — %$— — %
Obligations of states, municipalities and political subdivisions140 3 111 2 
Non-U.S. governments60 1 66 1 
Corporate debt2,546 48 2,392 47 
Mortgage-backed, asset-backed and collateralized:
RMBS273 5 286 6 
CMBS317 6 331 7 
CLO/ABS and other collateralized1,425 27 1,299 26 
Total mortgage-backed, asset-backed and collateralized
2,015 38 1,916 39 
Total fixed maturity securities4,762 90 4,485 89 
Equity securities591 10 575 11 
Total$5,353 100 %$5,060 100 %
OTHER INVESTED ASSETS
The following table summarizes the carrying amounts of other invested assets:
(in millions)March 31, 2023December 31, 2022
Alternative investments(a)(b)
$11,852 $11,809 
Investment real estate(c)
2,199 2,153 
All other investments(d)
2,053 1,991 
Total$16,104 $15,953 
(a)At March 31, 2023, included hedge funds of $1.3 billion and private equity funds of $10.5 billion. At December 31, 2022, included hedge funds of $1.4 billion and private equity funds of $10.4 billion.
(b)At March 31, 2023, approximately 65 percent of our hedge fund portfolio is available for redemption in 2023. The remaining 35 percent will be available for redemption between 2024 and 2028.
(c)Represents values net of accumulated depreciation. At March 31, 2023 and December 31, 2022, the accumulated depreciation was $802 million and $786 million, respectively.
(d)Includes AIG's ownership interest in Fortitude Group Holdings, LLC (FRL), which is recorded using the measurement alternative for equity securities. Our investment in FRL totaled $156 million and $156 million at March 31, 2023 and December 31, 2022, respectively.
NET INVESTMENT INCOME
The following table presents the components of Net investment income:
Three Months Ended March 31,20232022
(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$2,546 $243 $2,789 $2,041 $301 $2,342 
Other fixed maturity securities(a)
12 123 135 (201)(118)(319)
Equity securities51 — 51 (27)— (27)
Interest on mortgage and other loans567 59 626 453 46 499 
Alternative investments(b)
76 31 107 669 71 740 
Real estate3 — 3 — — — 
Other investments(c)
28 (1)27 157 — 157 
Total investment income3,283 455 3,738 3,092 300 3,392 
Investment expenses196 9 205 146 9 155 
Net investment income$3,087 $446 $3,533 $2,946 $291 $3,237 
(a)Included in the three-month period ended March 31, 2022 was income (loss) of $(95) million related to fixed maturity securities measured at fair value that economically hedge liabilities described in (c) below.
(b)Included income from hedge funds, private equity funds and affordable housing partnerships. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag.
(c)Included in the three-month periods ended March 31, 2023 and 2022 were income (loss) of $(3) million and $91 million, respectively, related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above.
NET REALIZED GAINS AND LOSSES
Net realized gains and losses are determined by specific identification. The net realized gains and losses are generated primarily from the following sources:
•Sales of available for sale fixed maturity securities, real estate and other alternative investments.
•Reductions to the amortized cost basis of available for sale fixed maturity securities that have been written down due to our intent to sell them or it being more likely than not that we will be required to sell them.
•Changes in the allowance for credit losses on bonds available for sale, mortgage and other loans receivable, and loans commitments.
•Changes in fair value of free standing and embedded derivatives, including changes in the non-performance adjustment, except for those instruments that hedge the change in the fair value of certain MRBs or are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized gains (losses).
•Foreign exchange gains and losses resulting from foreign currency transactions.
•Changes in fair value of the embedded derivative related to the Fortitude Re funds withheld assets.
The following table presents the components of Net realized gains (losses):
Three Months Ended March 31,20232022
(in millions)Excluding Fortitude
Re Funds
Withheld Assets		Fortitude Re
Funds Withheld
Assets		TotalExcluding Fortitude
Re Funds
Withheld Assets		Fortitude Re
Funds Withheld
Assets		Total
Sales of fixed maturity securities$(387)$(65)$(452)$(107)$(32)$(139)
Change in allowance for credit losses on fixed maturity securities(16)— (16)(53)(40)(93)
Change in allowance for credit losses on loans(42)(21)(63)(19)(8)(27)
Foreign exchange transactions114 16 130 (13)(9)(22)
Index-linked interest credited embedded derivatives, net of related hedges(178)— (178)203 — 203 
All other derivatives and hedge accounting*(217)38 (179)400 (56)344 
Sales of alternative investments and real estate investments4 1 5 16 1 17 
Other9 — 9 (26)4 (22)
Net realized gains (losses) – excluding Fortitude Re funds withheld embedded derivative (713)(31)(744)401 (140)261 
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative— (1,165)(1,165)— 3,318 3,318 
Net realized gains (losses)$(713)$(1,196)$(1,909)$401 $3,178 $3,579 
*Derivative activity related to hedging MRBs is recorded in Change in the fair value of MRBs, net. For additional disclosures about MRBs, see Note 12.
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 March 31,
(in millions)20232022
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities$5,005 $(20,160)
Other investments— (7)
Total increase (decrease) in unrealized appreciation (depreciation) of investments$5,005 $(20,167)
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 March 31,20232022
(in millions)EquitiesOther
Invested
Assets		TotalEquitiesOther
Invested
Assets		Total
Net gains (losses) recognized during the period on equity securities and other investments$51 $110 $161 $(27)$475 $448 
Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period153 1 154 94 (3)91 
Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date$(102)$109 $7 $(121)$478 $357 
EVALUATING INVESTMENTS FOR AN ALLOWANCE FOR CREDIT LOSSES
For a discussion of our policy for evaluating investments for an allowance for credit losses, see Note 5 to the Consolidated Financial Statements in the 2022 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 March 31,20232022
(in millions)StructuredNon-
Structured		TotalStructuredNon-
Structured		Total
Balance, beginning of year$46 $140 $186 $8 $90 $98 
Additions:
Securities for which allowance for credit losses were not previously recorded2 22 24 49 128 177 
Reductions:
Securities sold during the period(1)(10)(11)— (1)(1)
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)(4)(8)(42)(42)(84)
Write-offs charged against the allowance— (50)(50)— — — 
Other2 (7)(5)— 1 1 
Balance, end of period$45 $91 $136 $15 $176 $191 
Purchased Credit Deteriorated (PCD) 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 three-month periods ended March 31, 2023 and 2022.
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)March 31, 2023December 31, 2022
Fixed maturity securities available for sale$2,679$2,968
At March 31, 2023 and December 31, 2022, amounts borrowed under repurchase and securities lending agreements totaled $2.6 billion and $3.1 billion, respectively.
The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity:
Remaining Contractual Maturity of the Agreements
(in millions)Overnight
and
Continuous		up to
30 days		31 - 90
days		91 - 364
days		365 days
or greater		Total
March 31, 2023
Bonds available for sale:
Non-U.S. governments$— $74 $— $— $— $74 
Corporate debt28 2,084 493 — — 2,605 
Total$28 $2,158 $493 $— $— $2,679 
December 31, 2022
Bonds available for sale:
Non-U.S. governments$— $20 $— $— $— $20 
Corporate debt— 2,371 577 — — 2,948 
Total$— $2,391 $577 $— $— $2,968 
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 $15.4 billion and $13.6 billion at March 31, 2023 and December 31, 2022, 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 $261 million and $239 million of stock in FHLBs at March 31, 2023 and December 31, 2022, respectively. In addition, our subsidiaries have pledged securities available for sale and residential loans associated with borrowings and funding agreements from FHLBs, with a fair value of $6.8 billion and $2.1 billion, respectively, at March 31, 2023 and $5.8 billion and $1.8 billion, respectively, at December 31, 2022.
Certain GIAs have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our long-term debt ratings. The actual amount of collateral required to be posted to the counterparties in the event of such downgrades, and the aggregate amount of payments that we could be required to make, depend on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. The fair value of securities pledged as collateral with respect to these obligations was approximately $63 million and $63 million, at March 31, 2023 and December 31, 2022, respectively. This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties.
Investments held in escrow accounts or otherwise subject to restriction as to their use were $305 million and $301 million, comprised of bonds available for sale and short-term investments at March 31, 2023 and December 31, 2022, respectively.
Reinsurance transactions between AIG and Fortitude Re were structured as modco and loss portfolio transfer arrangements with funds withheld.