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Segment Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
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.
•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 Property, Liability, Financial Lines and Specialty.
–Personal Insurance – consists of Accident & Health and Personal Lines.
For further discussion on recent activity in the General Insurance business, see Note 1.
LIFE AND RETIREMENT
Life and Retirement business is presented as four operating segments:
•Individual Retirement – consists of fixed annuities, fixed index annuities and variable annuities.
•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. Corebridge previously announced agreements to sell Laya and AIG Life. The sale of Laya closed on October 31, 2023 and the AIG Life sale is expected to close in the first half of 2024.
•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 further discussion on the ongoing separation of the Life and Retirement business from AIG and other recent activity, 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.
SEGMENT RESULTS
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 pre-tax income (loss), 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:
Three Months Ended September 30,20232022
(in millions)Adjusted
Revenues		Adjusted
Pre-tax
Income
(Loss)		Adjusted
Revenues		Adjusted
Pre-tax
Income
(Loss)
General Insurance
North America$3,079 $235 
(a)
$3,140 $(439)
(a)
International3,343 376 
(a)
3,267 607 
(a)
Net investment income756 756 582 582 
Total General Insurance7,178 1,367 6,989 750 
Life and Retirement
Individual Retirement1,560 572 1,301 377 
Group Retirement688 191 672 193 
Life Insurance1,276 133 1,250 131 
Institutional Markets656 75 1,110 83 
Total Life and Retirement4,180 971 4,333 784 
Other Operations
Other Operations before consolidation and eliminations56 (468)126 (467)
Consolidation and eliminations26 3 (152)(147)
Total Other Operations82 (465)(26)(614)
Total11,440 1,873 11,296 920 
Reconciling items:
Changes in fair value of securities used to hedge guaranteed living benefits13 (6)14 6 
Change in the fair value of market risk benefits, net(b)
— 418 — 435 
Changes in benefit reserves related to net realized gains (losses)— 2 — 2 
Changes in the fair value of equity securities40 40 16 16 
Other income (expense) - net(7)— (7)— 
Gain (loss) on extinguishment of debt— (21)— — 
Net investment income on Fortitude Re funds withheld assets264 264 155 155 
Net realized losses on Fortitude Re funds withheld assets(227)(227)(86)(86)
Net realized gains on Fortitude Re funds withheld embedded derivative1,137 1,137 1,757 1,757 
Net realized gains(c)
114 133 845 846 
Net gain on divestitures and other— 101 — 6 
Non-operating litigation reserves and settlements— — 8 3 
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements— 75 — 62 
Net loss reserve discount charge— (5)— (10)
Pension expense related to a one-time lump sum payment to former employees— (8)— — 
Integration and transaction costs associated with acquiring or divesting businesses— (65)— (52)
Restructuring and other costs— (132)— (147)
Non-recurring costs related to regulatory or accounting changes— (11)— (9)
Revenues and pre-tax income$12,774 $3,568 $13,998 $3,904 
Nine Months Ended September 30,20232022
(in millions)Adjusted
Revenues		Adjusted
Pre-tax
Income
(Loss)		Adjusted
Revenues		Adjusted
Pre-tax
Income
(Loss)
General Insurance
North America$9,254 $886 
(a)
$8,901 $223 
(a)
International9,924 821 
(a)
10,148 1,190 
(a)
Net investment income2,227 2,227 1,805 1,805 
Total General Insurance21,405 3,934 20,854 3,218 
Life and Retirement
Individual Retirement4,622 1,690 3,915 1,213 
Group Retirement2,061 579 2,078 614 
Life Insurance3,805 293 3,875 364 
Institutional Markets4,979 286 2,445 274 
Total Life and Retirement15,467 2,848 12,313 2,465 
Other Operations
Other Operations before consolidation and eliminations299 (1,325)627 (1,086)
AIG consolidation and eliminations(52)(51)(424)(410)
Total Other Operations247 (1,376)203 (1,496)
Total37,119 5,406 33,370 4,187 
Reconciling items:
Changes in fair value of securities used to hedge guaranteed living benefits40 (12)41 29 
Change in the fair value of market risk benefits, net(b)
— 484 — 713 
Changes in benefit reserves related to net realized gains (losses)— 7 — 11 
Changes in the fair value of equity securities134 134 (41)(41)
Other income (expense) - net(26)— (23)— 
Loss on extinguishment of debt— (21)— (299)
Net investment income on Fortitude Re funds withheld assets1,001 1,001 634 634 
Net realized gains (losses) on Fortitude Re funds withheld assets(396)(396)(312)(312)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative152 152 7,851 7,851 
Net realized gains (losses)(c)
(1,053)(1,023)1,039 1,055 
Net gain (loss) on divestitures and other— 142 — 45 
Non-operating litigation reserves and settlements1 — 46 41 
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements— 112 — 206 
Net loss reserve discount charge— (85)— (4)
Pension expense related to a one-time lump sum payment to former employees— (75)— — 
Integration and transaction costs associated with acquiring or divesting businesses— (196)— (136)
Restructuring and other costs— (402)— (415)
Non-recurring costs related to regulatory or accounting changes— (36)— (22)
Net impact from elimination of international reporting lag(d)
4 12 — — 
Revenues and pre-tax income (loss)$36,976 $5,204 $42,605 $13,543 
(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 realized gains and losses on certain derivative instruments used for non-qualifying (economic) hedging.
(c)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).
(d)See Note 1.