Segment Information

12 Months Ended

Dec. 31, 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:

(in millions)		Adjusted Revenues	Net Investment Income			Interest Expense	Amortization of DAC			Adjusted Pre-tax Income (Loss)
2023
General Insurance
North America	$	11,921			$	—	$	1,671	$	1,207	(a)
International		13,170				—		1,952		1,142	(a)
Net investment income		3,022	$	3,022		—		—		3,022
Total General Insurance		28,113		3,022		—		3,623		5,371
Life and Retirement
Individual Retirement		6,264		4,917		2		567		2,310
Group Retirement		2,734		1,999		1		82		758
Life Insurance		5,092		1,283		—		403		358
Institutional Markets		7,391		1,587		1		9		379
Total Life and Retirement		21,481		9,786		4		1,061		3,805
Other Operations
Other Operations before consolidation and eliminations		381		287		1,107		—		(1,765)
AIG consolidation and eliminations		(6)		(1)		(6)		—		(10)
Total Other Operations		375		286		1,101		—		(1,775)
Total		49,969		13,094		1,105		4,684		7,401
Reconciling items:
Changes in fair value of securities used to hedge guaranteed living benefits		55		55		—		—		(16)
Change in the fair value of market risk benefits, net(b)		—		—		—		—		(2)
Changes in benefit reserves related to net realized gains (losses)		—		—		—		—		6
Changes in the fair value of equity securities		94		94		—		—		94
Other income (expense) - net		(27)		31		31		—		—
Gain (loss) on extinguishment of debt		—		—		—		—		37
Net investment income on Fortitude Re funds withheld assets		1,544		1,544		—		—		1,544
Net realized gains (losses) on Fortitude Re funds withheld assets		(295)		—		—		—		(295)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative		(2,007)		—		—		—		(2,007)
Net realized gains (losses)(c)		(2,536)		(227)		—		—		(2,496)
Net gain (loss) on divestitures and other		—		—		—		—		643
Non-operating litigation reserves and settlements		1		—		—		—		(1)
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements		—		—		—		—		62
Net loss reserve discount benefit (charge)		—		—		—		—		(195)

(in millions)		Adjusted Revenues	Net Investment Income			Interest Expense	Amortization of DAC			Adjusted Pre-tax Income (Loss)
Pension expense related to a one-time lump sum payment to former employees		—		—		—		—		(84)
Integration and transaction costs associated with acquiring or divesting businesses		—		—		—		—		(252)
Restructuring and other costs		—		—		—		—		(553)
Non-recurring costs related to regulatory or accounting changes		—		—		—		—		(40)
Net impact from elimination of international reporting lag(d)		4		1		—		124		12
Revenues and pre-tax income	$	46,802	$	14,592	$	1,136	$	4,808	$	3,858

(in millions)		Adjusted Revenues	Net Investment Income			Interest Expense	Amortization of DAC			Adjusted Pre-tax Income (Loss)
2022
General Insurance
North America	$	12,071			$	—	$	1,585	$	648	(a)
International		13,269				—		1,948		1,400	(a)
Net investment income		2,382	$	2,382		—		—		2,382
Total General Insurance		27,722		2,382		—		3,533		4,430
Life and Retirement
Individual Retirement		5,325		3,898		11		519		1,676
Group Retirement		2,744		2,005		6		80		786
Life Insurance		5,364		1,393		4		415		521
Institutional Markets		4,160		1,051		2		7		334
Total Life and Retirement		17,593		8,347		23		1,021		3,317
Other Operations
Other Operations before consolidation and eliminations		827		714		1,131		5		(1,542)
AIG consolidation and eliminations		(435)		(446)		(56)		(2)		(405)
Total Other Operations		392		268		1,075		3		(1,947)
Total		45,707		10,997		1,098		4,557		5,800
Reconciling items:
Changes in fair value of securities used to hedge guaranteed living benefits		55		55		—		—		30
Change in the fair value of market risk benefits, net(b)		—		—		—		—		958
Changes in benefit reserves related to net realized gains (losses)		—		—		—		—		14
Changes in the fair value of equity securities		(53)		(53)		—		—		(53)
Other income (expense) - net		(29)		28		28		—		—
Gain (loss) on extinguishment of debt		—		—		—		—		(303)
Net investment income on Fortitude Re funds withheld assets		943		943		—		—		943
Net realized gains (losses) on Fortitude Re funds withheld assets		(486)		—		—		—		(486)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative		7,481		—		—		—		7,481
Net realized gains (losses)(b)		(195)		(244)		(1)		—		(173)
Net gain (loss) on divestitures and other		—		—		—		—		(82)
Non-operating litigation reserves and settlements		49		—		—		—		41
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements		—		—		—		—		160
Net loss reserve discount benefit (charge)		—		—		—		—		703
Pension expense related to a one-time lump sum payment to former employees		—		—		—		—		(60)
Integration and transaction costs associated with acquiring or divesting businesses		—		—		—		—		(194)
Restructuring and other costs		—		—		—		—		(570)
Non-recurring costs related to regulatory or accounting changes		—		—		—		—		(37)
Net impact from elimination of international reporting lag(d)		978		41		—		—		127
Revenues and pre-tax income	$	54,450	$	11,767	$	1,125	$	4,557	$	14,299

(in millions)		Adjusted Revenues	Net Investment Income			Interest Expense	Amortization of DAC			Adjusted Pre-tax Income (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		5,922		4,338		61		447		2,297
Group Retirement		3,249		2,410		35		78		1,258
Life Insurance		5,286		1,619		25		427		453
Institutional Markets		5,117		1,154		9		6		546
Total Life and Retirement		19,574		9,521		130		958		4,554
Other Operations
Other Operations before consolidation and eliminations		1,338		1,112		1,220		37		(1,418)
AIG consolidation and eliminations		(991)		(996)		(65)		(1)		(932)
Total Other Operations		347		116		1,155		36		(2,350)
Total		48,282		12,941		1,285		4,524		6,563
Reconciling items:
Changes in fair value of securities used to hedge guaranteed living benefits		60		60		—		—		61
Change in the fair value of market risk benefits, net(b)		—		—		—		—		447
Changes in benefit reserves related to net realized gains (losses)		—		—		—		—		(15)
Changes in the fair value of equity securities		(237)		(237)		—		—		(237)
Other income (expense) - net		(24)		33		33		—		—
Gain (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)		1,705		(156)		(13)		—		1,744
Net gain (loss) on divestitures and other		—		—		—		—		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 (charge)		—		—		—		—		193
Pension expense related to a one-time lump sum payment 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	$	52,157	$	14,612	$	1,305	$	4,524	$	13,347

(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.

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

	Year-End Identifiable Assets				Capital Expenditures
(in millions)		2023		2022		2023		2022
General Insurance	$	139,371	$	147,083	$	158	$	68
Life and Retirement		375,197		352,694		43		102
Other Operations		24,738		22,451		39		40
Total Assets	$	539,306	$	522,228	$	240	$	210

The following table presents AIG’s consolidated total revenues and real estate and other fixed assets, net of accumulated depreciation, by major geographic area:

	Total Revenues*						Real Estate and Other Fixed Assets, Net of Accumulated Depreciation
(in millions)		2023		2022		2021		2023		2022		2021
North America	$	33,565	$	39,618	$	37,324	$	1,006	$	1,206	$	1,230
International		13,237		14,832		14,833		372		387		610
Consolidated	$	46,802	$	54,450	$	52,157	$	1,378	$	1,593	$	1,840

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