Derivatives and Hedge Accounting (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Condensed Consolidated Balance Sheets:

	March 31, 2024								December 31, 2023
	Gross Derivative Assets				Gross Derivative Liabilities				Gross Derivative Assets				Gross Derivative Liabilities
(in millions)		Notional Amount		Fair Value		Notional Amount		Fair Value		Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives designated as hedging instruments:(a)
Interest rate contracts	$	577	$	208	$	2,638	$	50	$	1,863	$	230	$	752	$	17
Foreign exchange contracts		5,627		385		1,932		204		3,847		416		6,402		336
Derivatives not designated as hedging instruments:(a)
Interest rate contracts		52,800		3,276		36,050		3,329		42,549		3,056		42,466		3,614
Foreign exchange contracts		14,993		851		6,430		423		8,803		820		9,900		558
Equity contracts		80,551		2,878		10,368		1,229		81,110		2,019		9,595		745
Credit contracts(b)		3,808		111		508		36		2,109		41		509		37
Other contracts(c)		43,182		13		47		1		44,640		13		48		2
Total derivatives, gross	$	201,538	$	7,722	$	57,973	$	5,272	$	184,921	$	6,595	$	69,672	$	5,309
Counterparty netting(d)				(4,545)				(4,545)				(3,864)				(3,864)
Cash collateral(e)				(2,601)				(326)				(2,220)				(1,050)
Total derivatives on Condensed Consolidated Balance Sheets(f)			$	576			$	401			$	511			$	395

(a)Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.

(b)As of March 31, 2024 and December 31, 2023, included CDSs on super senior multi-sector CLO with a net notional amount of $49 million and $50 million (fair value liability of $33 million and $32 million, respectively). The net notional amount represents the maximum exposure to loss on the portfolio.

(c)Consists primarily of stable value wraps and contracts with multiple underlying exposures.

(d)Represents netting of derivative exposures covered by a qualifying master netting agreement.

(e)Represents cash collateral posted and received that is eligible for netting.

(f)Freestanding derivatives only, excludes embedded derivatives. Derivative instrument assets and liabilities are recorded in Other assets and Other liabilities, respectively. Fair value of assets related to bifurcated embedded derivatives was $1.4 billion at March 31, 2024 and $1.2 billion at December 31, 2023. Fair value of liabilities related to bifurcated embedded derivatives was $8.7 billion and $8.0 billion, respectively, at March 31, 2024 and December 31, 2023. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in fixed index annuities, index universal life products, and bonds available for sale, which include equity and interest rate components, and the funds withheld arrangement with Fortitude Re. For additional information, see Note 8.

Schedule of Gain (Loss) Recognized in Income on Derivative Instruments in Fair Value Hedging Relationships

The following table presents the gain (loss) recognized in income on our derivative instruments in fair value hedging relationships in the Condensed Consolidated Statements of Income (Loss):

	Gains/(Losses) Recognized in Income for:
(in millions)	Hedging Derivatives(a)		Excluded Components(b)		Hedged Items		Net Impact
Three Months Ended March 31, 2024
Interest rate contracts:
Interest credited to policyholder account balances	$	(62)	$	—	$	64	$	2
Foreign exchange contracts:
Net realized gains/(losses)	88		(18)		(88)		(18)
Three Months Ended March 31, 2023
Interest rate contracts:
Interest credited to policyholder account balances	$	43	$	—	$	(47)	$	(4)
Foreign exchange contracts:
Net realized gains/(losses)	(130)		76		130		76

(a)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness.

(b)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are excluded from the assessment of hedge effectiveness and recognized in income on a mark-to-market basis.

Derivatives Not Designated as Hedging Instruments

The following table presents the effect of derivative instruments not designated as hedging instruments in the Condensed Consolidated Statements of Income (Loss):

Three Months Ended March 31,	Gains (Losses) Recognized in Income
(in millions)		2024		2023
By Derivative Type:
Interest rate contracts	$	(289)	$	95
Foreign exchange contracts		71		(101)
Equity contracts		189		(78)
Commodity contracts		—		7
Credit contracts		23		(1)
Other contracts		16		16
Embedded derivatives		(549)		(1,548)
Total	$	(539)	$	(1,610)
By Classification:
Policy fees	$	15	$	16
Net investment income - excluding Fortitude Re funds withheld assets		—		—
Net investment income - Fortitude Re funds withheld assets		6		(2)
Net realized gains (losses) - excluding Fortitude Re funds withheld assets(a)		220		(391)
Net realized losses on Fortitude Re funds withheld assets(b)		(77)		(1,127)
Policyholder benefits and claims incurred		(3)		3
Change in the fair value of market risk benefits, net(c)		(700)		(109)
Total	$	(539)	$	(1,610)

(a)Includes $5 million gain related to the sale of AIG Life reported in Net (gain) loss on divestitures. For additional information, see Notes 1 and 4.

(b)Includes over-the-counter derivatives supporting the funds withheld arrangements with Fortitude Re and the embedded derivative contained within the funds withheld payable with Fortitude Re.

(c)This represents activity related to derivatives that economically hedged changes in the fair value of certain market risk benefits.