Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Standards Update and Change in Accounting Principle

The following table presents the impacts in connection with the adoption of LDTI effective as of January 1, 2021 as well as cross references to the applicable notes herein for additional information:


	Pre-Adoption, December 31, 2020		Cumulative Effect Adjustment as of January 1, 2021		Updated Balances Post-Adoption of LDTI
(in millions)


Reinsurance assets - Fortitude Re, net of allowance for credit losses and disputes(a)	$	34,578	$	7,666	$	42,244
Reinsurance assets - other, net of allowance for credit losses and disputes(a)	38,963		469		39,432
Deferred income taxes	12,624		339		12,963
Deferred policy acquisition costs(b)	9,805		3,150		12,955
Market risk benefit assets(c)	—		338		338
Other assets, net of allowance for credit losses(d)	13,122		398		13,520
Total assets	586,481		12,360		598,841

Future policy benefits for life and accident and health insurance contracts(e)	56,878		10,486		67,364
Policyholder contract deposits(e)	154,470		(6,247)		148,223
Market risk benefit liabilities(c)	—		8,739		8,739
Other policyholder funds(f)	3,548		248		3,796
Other liabilities(g)	27,122		398		27,520
Total liabilities	519,282		13,624		532,906

Retained earnings	15,504		933		16,437
Accumulated other comprehensive income (loss)	13,511		(2,197)		11,314
Total AIG Shareholders' equity	66,362		(1,264)		65,098

Total equity	67,199		(1,264)		65,935
Total liabilities and equity	586,481		12,360		598,841

(a)For additional information on the transition impacts associated with LDTI, see Note 8.

(b)For additional information on the transition impacts associated with LDTI, see Note 9.

(c)For additional information on the transition impacts associated with LDTI, see Note 14.

(d)Other assets include deferred sales inducement assets. For additional information on the transition impacts associated with LDTI, see Note 9.

(e)For additional information on the transition impacts associated with LDTI, see Note 13.

(f)Other policyholder funds include URR. For additional information on the transition impacts associated with LDTI, see Note 13.

(g)Other liabilities include deferred cost of reinsurance liabilities. For additional information on the transition impacts associated with LDTI, see Note 8.

The following table presents the impacts in connection with the adoption of LDTI effective as of January 1, 2021 on our previously reported Consolidated Balance Sheets as of December 31, 2022:


	As Previously Reported		Effect of Change		Updated Balances Post-Adoption of LDTI
(in millions)


Reinsurance assets - Fortitude Re, net of allowance for credit losses and disputes	$	32,159	$	(1,408)	$	30,751
Reinsurance assets - other, net of allowance for credit losses and disputes	39,434		(463)		38,971
Deferred income taxes	15,144		(340)		14,804
Deferred policy acquisition costs	15,518		(2,661)		12,857
Market risk benefit assets	—		796		796
Other assets, net of allowance for credit losses	12,714		(330)		12,384
Total assets	526,634		(4,406)		522,228

Future policy benefits for life and accident and health insurance contracts	59,223		(7,309)		51,914
Policyholder contract deposits	158,891		(2,907)		155,984
Market risk benefit liabilities	—		4,736		4,736
Other policyholder funds	3,909		(446)		3,463
Other liabilities	26,456		301		26,757
Total liabilities	484,399		(5,625)		478,774
Additional paid-in capital	80,284		(369)		79,915
Retained earnings	33,032		1,861		34,893
Accumulated other comprehensive income (loss)	(22,092)		(524)		(22,616)
Total AIG Shareholders' equity	40,002		968		40,970
Non-redeemable noncontrolling interests	2,233		251		2,484
Total equity	42,235		1,219		43,454
Total liabilities and equity	526,634		(4,406)		522,228

The following table presents the impacts in connection with the adoption of LDTI on our previously reported Consolidated Statements of Income (Loss):


	Year Ended December 31, 2022	Year Ended December 31, 2021
			As Previously Reported		Effect of Change		Updated Balances Post- Adoption of LDTI		As Previously Reported		Effect of Change		Updated Balances Post- Adoption of LDTI
(in millions, except per common share data)
Revenues:
Premiums			$	31,857	$	(1)	$	31,856	$	31,259	$	26	$	31,285
Policy fees			2,972		(59)		2,913		3,051		(46)		3,005
Total net realized gains (losses)			8,991		(1,927)		7,064		2,151		120		2,271
Total revenues			56,437		(1,987)		54,450		52,057		100		52,157
Benefits, losses and expenses:
Policyholder benefits and losses incurred			22,771		(595)		22,176		24,388		(603)		23,785
Change in the fair value of market risk benefits, net			—		(958)		(958)		—		(447)		(447)
Interest credited to policyholder account balances			3,709		35		3,744		3,557		13		3,570
Amortization of deferred acquisition costs			4,970		(413)		4,557		4,573		(49)		4,524
General operating and other expenses			9,195		(73)		9,122		8,790		(62)		8,728
Total benefits, losses and expenses			42,155		(2,004)		40,151		39,958		(1,148)		38,810
Income from continuing operations before income tax expense (benefit)			14,282		17		14,299		12,099		1,248		13,347
Income tax expense			3,006		19		3,025		2,176		265		2,441
Income (loss) from continuing operations			11,276		(2)		11,274		9,923		983		10,906
Net income (loss)			11,275		(2)		11,273		9,923		983		10,906
Net income from continuing operations attributable to noncontrolling interests			999		47		1,046		535		4		539
Net income (loss) attributable to AIG			10,276		(49)		10,227		9,388		979		10,367
Net income (loss) attributable to AIG common shareholders			10,247		(49)		10,198		9,359		979		10,338
Income (loss) per common share attributable to AIG common shareholders:
Common stock - Basic			13.16		(0.06)		13.10		10.95		1.15		12.10
Common stock - Diluted			13.01		(0.07)		12.94		10.82		1.13		11.95

The following table presents the impacts in connection with the adoption of LDTI on our previously reported Consolidated Statements of Comprehensive Income (Loss):


	Year Ended December 31, 2022	Year Ended December 31, 2021
		As Previously Reported			Effect of Change			Updated Balances Post- Adoption of LDTI			As Previously Reported	Effect of Change		Updated Balances Post- Adoption of LDTI
(in millions)

Net income			$	11,275		$	(2)		$	11,273		$	9,923	$	983	$	10,906
Other comprehensive income (loss), net of tax
Change in unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken			(87)			(7)			(94)			35		9		44
Change in unrealized appreciation (depreciation) of all other investments			(32,775)			(5,633)			(38,408)			(6,001)		(1,150)		(7,151)
Change in fair value of market risk benefits attributable to changes in our own credit risk			—			1,294			1,294			—		179		179
Change in the discount rates used to measure traditional and limited payment long-duration insurance contracts			—			5,544			5,544			—		1,361		1,361
Change in foreign currency translation adjustments			(514)			(99)			(613)			(187)		7		(180)
Other comprehensive income (loss)			(33,402)			1,099			(32,303)			(5,830)		406		(5,424)
Comprehensive income (loss)			(22,127)			1,097			(21,030)			4,093		1,389		5,482
Comprehensive income (loss) attributable to noncontrolling interests			(1,584)			130			(1,454)			430		10		440
Comprehensive income (loss) attributable to AIG			(20,543)			967			(19,576)			3,663		1,379		5,042

The following table presents the impacts in connection with the adoption of LDTI on our previously reported Consolidated Statements of Cash Flows:


	Year Ended December 31, 2022				Year Ended December 31, 2021
	As Previously Reported		Effect of Change		Updated Balances Post- Adoption of LDTI		As Previously Reported		Effect of Change		Updated Balances Post- Adoption of LDTI
(in millions)
Cash flows from operating activities:
Net income	$	11,275	$	(2)	$	11,273	$	9,923	$	983	$	10,906
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized gains in earnings - net	(1,392)		2,486		1,094		(1,889)		1,016		(873)
Change in the fair value of market risk benefits in earnings, net	—		(1,481)		(1,481)		—		(1,427)		(1,427)
Depreciation and other amortization	4,848		(439)		4,409		4,633		(91)		4,542
Changes in operating assets and liabilities:
Insurance reserves	(2,332)		(1,505)		(3,837)		5,127		(655)		4,472
Premiums and other receivables and payables - net	(10,193)		(29)		(10,222)		(655)		(69)		(724)
Reinsurance assets, net	2,843		1,135		3,978		(1,241)		197		(1,044)
Capitalization of deferred policy acquisition costs	(4,649)		(73)		(4,722)		(4,906)		(63)		(4,969)
Current and deferred income taxes - net	2,260		19		2,279		1,314		265		1,579
Other, net	340		(184)		156		(1,322)		(212)		(1,534)
Total adjustments	(7,069)		(71)		(7,140)		(3,644)		(1,039)		(4,683)
Net cash provided by operating activities	4,207		(73)		4,134		6,279		(56)		6,223
Cash flows from financing activities:
Policyholder contract deposits	26,508		74		26,582		25,424		56		25,480


Net cash used in financing activities	(676)		74		(602)		(3,735)		56		(3,679)