REINSURANCE (Tables)

3 Months Ended

Mar. 31, 2022

Effects of Reinsurance [Line Items]

Summary of the composition of pool of assets

	March 31, 2022				December 31, 2021
	Carrying			Fair	Carrying			Fair
(in millions)		Value		Value		Value		Value	Corresponding Accounting Policy
Fixed maturity securities - available for sale(a)	$	26,513	$	26,513	$	31,815	$	31,815	Fair value through other comprehensive income (loss)
Fixed maturity securities - fair value option		2,711		2,711		1,983		1,983	Fair value through net investment income
Commercial mortgage loans		3,889		3,940		3,637		3,859	Amortized cost
Real estate investments		178		414		201		395	Amortized cost
Private equity funds / hedge funds		1,724		1,724		1,606		1,606	Fair value through net investment income
Policy loans		373		373		380		380	Amortized cost
Short-term investments		81		81		50		50	Fair value through net investment income
Funds withheld investment assets		35,469		35,756		39,672		40,088
Derivative assets, net(b)		72		72		81		81	Fair value through net realized gains (losses)
Other(c)		653		653		602		602	Amortized cost
Total	$	36,194	$	36,481	$	40,355	$	40,771

(a)The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $(3.3) billion ($(2.6) billion after-tax) and $(2.9) billion ($(2.3) billion after-tax), respectively for the three months ended March 31, 2022 and 2021.

(b) The derivative assets and liabilities have been presented net of cash collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $349 million and $16 million, respectively, as of March 31, 2022. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $389 million and $10 million, respectively, as of December 31, 2021. These derivative assets and liabilities are fully collateralized either by cash or securities.

(c) Primarily comprised of Cash and Accrued investment income.

Summary of the impact of modco and funds withheld

Three Months Ended March 31,
(in millions)	2022		2021
Net underwriting income	$	-	$	-
Net investment income - Fortitude Re funds withheld assets		291		486
Net realized gains (losses) on Fortitude Re funds withheld assets:
Net realized gains (losses) - Fortitude Re funds withheld assets		(140)		173
Net realized gains - Fortitude Re embedded derivatives		3,318		2,382
Net realized gains on Fortitude Re funds withheld assets		3,178		2,555
Income from continuing operations before income tax expense		3,469		3,041
Income tax expense(a)		728		639
Net income		2,741		2,402
Change in unrealized depreciation of all other investments(a)		(2,638)		(2,340)
Comprehensive income	$	103	$	62

(a)The income tax expense (benefit) and the tax impact in AOCI was computed using AIG’s U.S. statutory tax rate of 21 percent.

Schedule of rollforward of allowance for credit losses

Three Months Ended March 31,	2022						2021
		General		Life and				General		Life and
(in millions)	Insurance		Retirement			Total	Insurance		Retirement			Total
Balance, beginning of year	$	281	$	101	$	382	$	292	$	83	$	375
Addition to (release of) allowance for expected credit losses and disputes, net		5		4		9		1		4		5
Write-offs charged against the allowance for credit losses and disputes		(2)		-		(2)		(4)		-		(4)
Other changes		2		-		2		2		-		2
Balance, end of period	$	286	$	105	$	391	$	291	$	87	$	378