v3.24.0.1
Investments (Tables)
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of Amortized Cost and Fair Value of Available For Sale Securities
The following table presents the amortized cost and fair value of our available for sale securities:
(in millions)
Amortized
Cost
Allowance
for Credit
Losses(a)
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
December 31, 2023
Bonds available for sale:
U.S. government and government sponsored entities$5,885 $— $58 $(327)$5,616 
Obligations of states, municipalities and political subdivisions11,387 — 118 (842)10,663 
Non-U.S. governments13,668 (3)137 (1,349)12,453 
Corporate debt154,674 (90)1,898 (18,050)138,432 
Mortgage-backed, asset-backed and collateralized:
RMBS20,875 (35)821 (1,217)20,444 
CMBS15,379 (34)46 (1,263)14,128 
CLO/ABS31,167 — 183 (1,353)29,997 
Total mortgage-backed, asset-backed and collateralized67,421 (69)1,050 (3,833)64,569 
Total bonds available for sale(b)
$253,035 $(162)$3,261 $(24,401)$231,733 
December 31, 2022
Bonds available for sale:
U.S. government and government sponsored entities$7,094 $— $21 $(496)$6,619 
Obligations of states, municipalities and political subdivisions13,195 — 99 (1,195)12,099 
Non-U.S. governments15,133 (6)91 (1,733)13,485 
Corporate debt160,242 (132)1,152 (23,423)137,839 
Mortgage-backed, asset-backed and collateralized:
RMBS19,584 (37)807 (1,537)18,817 
CMBS15,610 (11)14 (1,420)14,193 
CLO/ABS25,135 — 38 (2,069)23,104 
(in millions)
Amortized
Cost
Allowance
for Credit
Losses(a)
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Total mortgage-backed, asset-backed and collateralized60,329 (48)859 (5,026)56,114 
Total bonds available for sale(b)
$255,993 $(186)$2,222 $(31,873)$226,156 
(a)Represents the allowance for credit losses that has been recognized. Changes in the allowance for credit losses are recorded through Net realized gains (losses) and are not recognized in OCI.
(b)At December 31, 2023 and 2022, the fair value of bonds available for sale held by us that were below investment grade or not rated totaled $17.1 billion or 7 percent and $22.3 billion or 10 percent, respectively.
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
The following table summarizes the fair value and gross unrealized losses on our available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit loss has been recorded:
Less than 12 Months12 Months or MoreTotal
(in millions)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
December 31, 2023
Bonds available for sale:
U.S. government and government sponsored entities$1,046 $12 $1,550 $315 $2,596 $327 
Obligations of states, municipalities and political subdivisions1,994 133 5,218 709 7,212 842 
Non-U.S. governments1,901 168 7,483 1,175 9,384 1,343 
Corporate debt15,483 1,936 93,649 16,076 109,132 18,012 
RMBS4,154 288 7,246 880 11,400 1,168 
CMBS2,864 219 8,192 1,027 11,056 1,246 
CLO/ABS6,965 202 13,436 1,151 20,401 1,353 
Total bonds available for sale$34,407 $2,958 $136,774 $21,333 $171,181 $24,291 
December 31, 2022
Bonds available for sale:
U.S. government and government sponsored entities$3,493 $368 $1,816 $128 $5,309 $496 
Obligations of states, municipalities and political subdivisions8,697 1,180 73 15 8,770 1,195 
Non-U.S. governments10,702 1,526 779 191 11,481 1,717 
Corporate debt110,683 19,756 13,778 3,609 124,461 23,365 
RMBS10,953 1,293 1,005 182 11,958 1,475 
CMBS11,620 1,094 1,728 326 13,348 1,420 
CLO/ABS16,852 1,388 4,307 681 21,159 2,069 
Total bonds available for sale$173,000 $26,605 $23,486 $5,132 $196,486 $31,737 
Investments Classified by Contractual Maturity Date
The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity:
December 31, 2023Total Fixed Maturity Securities
Available for Sale
(in millions)Amortized Cost,
Net of Allowance		Fair Value
Due in one year or less$7,963 $7,860 
Due after one year through five years47,489 46,165 
Due after five years through ten years40,869 38,202 
Due after ten years89,200 74,937 
Mortgage-backed, asset-backed and collateralized67,352 64,569 
Total$252,873 $231,733 
Realized Gain (Loss) on Investments
The following table presents the gross realized gains and gross realized losses from sales or maturities of our available for sale securities:
Years Ended December 31,
202320222021
(in millions)Gross
Realized
Gains		Gross
Realized
Losses		Gross
Realized
Gains		Gross
Realized
Losses		Gross
Realized
Gains		Gross
Realized
Losses
Fixed maturity securities$267$1,329$446$1,628$1,369$441
The following table presents the components of Net realized gains (losses):
Years Ended December 31,202320222021
(in millions)Excluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		TotalExcluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		TotalExcluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		Total
Sales of fixed maturity securities$(929)$(133)$(1,062)$(871)$(311)$(1,182)$211 $717 $928 
Intent to sell— — — (66)— (66)— — — 
Change in allowance for credit losses on fixed maturity securities(211)(9)(220)(184)(32)(216)19 7 26 
Change in allowance for credit losses on loans(167)(62)(229)(55)(47)(102)163 9 172 
Foreign exchange transactions101 19 120 (20)(5)(25)22 (5)17 
Index-linked interest credited embedded derivatives, net of related hedges(784)— (784)(119)— (119)(5)— (5)
All other derivatives and hedge accounting*(374)(105)(479)1,230 (134)1,096 260 28 288 
Sales of alternative investments and real estate investments98 (2)96 193 43 236 988 237 1,225 
Other(40)(3)(43)(39)— (39)213 10 223 
Net realized gains (losses) – excluding Fortitude Re funds withheld embedded derivative (2,306)(295)(2,601)69 (486)(417)1,871 1,003 2,874 
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative— (2,007)(2,007)— 7,481 7,481 — (603)(603)
Net realized gains (losses)$(2,306)$(2,302)$(4,608)$69 $6,995 $7,064 $1,871 $400 $2,271 
*Derivative activity related to hedging MRBs is recorded in Change in the fair value of MRBs, net. For additional disclosures about MRBs, see Note 14.
Debt Securities, Trading, and Equity Securities, FV-NI
The following table presents the fair value of fixed maturity securities measured at fair value based on our election of the fair value option, which are reported in the other bond securities caption in the financial statements, and equity securities measured at fair value:
(in millions)December 31, 2023December 31, 2022
Fair
Value		Percent
of Total		Fair
Value		Percent
of Total
Fixed maturity securities:
Obligations of states, municipalities and political subdivisions$91 2 %$111 2 %
Non-U.S. governments37 1 66 1 
Corporate debt2,908 49 2,392 47 
Mortgage-backed, asset-backed and collateralized:
RMBS263 4 286 6 
CMBS261 4 331 7 
CLO/ABS and other collateralized1,681 28 1,299 26 
Total mortgage-backed, asset-backed and collateralized
2,205 36 1,916 39 
Total fixed maturity securities5,241 88 4,485 89 
Equity securities728 12 575 11 
Total$5,969 100 %$5,060 100 %
Schedule of Other Invested Assets
The following table summarizes the carrying amounts of other invested assets:
(in millions)December 31, 2023December 31, 2022
Alternative investments(a)(b)
$11,320 $11,809 
Investment real estate(c)
2,237 2,153 
All other investments(d)
2,660 1,991 
Total$16,217 $15,953 
(a)At December 31, 2023, included hedge funds of $0.7 billion and private equity funds of $10.6 billion. At December 31, 2022, included hedge funds of $1.4 billion and private equity funds of $10.4 billion.
(b)The majority of our hedge fund investments are redeemable upon a single month or quarter’s notice, though redemption terms vary from single, immediate withdrawals, to withdrawals staggered up to six quarters. Some of the portfolio consists of illiquid run-off or “side-pocket” positions whose liquidation horizons are uncertain and likely beyond a year after submission of the redemption notice.
(c)Represents values net of accumulated depreciation. At December 31, 2023 and 2022, the accumulated depreciation was $853 million and $786 million, respectively.
(d)Includes AIG's ownership interest in Fortitude Group Holdings, LLC (FRL), and DaVinciRe Holdings Ltd, Class D (DVRH), which are recorded using the measurement alternative for equity securities. Our investment in FRL totaled $156 million and $156 million at December 31, 2023 and 2022, respectively. Our investment in DVRH totaled $300 million at December 31, 2023.
Investment Income
The following table presents the components of Net investment income:
Years Ended December 31,202320222021
(in millions)Excluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		TotalExcluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		TotalExcluding
Fortitude
Re Funds
Withheld
Assets		Fortitude
Re
Funds
Withheld
Assets		Total
Available for sale fixed maturity securities, including short-term investments$10,780 $917 $11,697 $8,664 $1,067 $9,731 $8,583 $1,468 $10,051 
Other fixed maturity securities(a)
43 339 382 (363)(459)(822)(19)7 (12)
Equity securities94 — 94 (53)— (53)(237)— (237)
Interest on mortgage and other loans2,450 237 2,687 1,959 203 2,162 1,745 207 1,952 
Alternative investments(b)
233 86 319 819 170 989 2,579 321 2,900 
Real estate42 — 42 57 — 57 225 — 225 
Other investments(c)
162 (6)156 359 (5)354 250 5 255 
Total investment income13,804 1,573 15,377 11,442 976 12,418 13,126 2,008 15,134 
Investment expenses756 29 785 618 33 651 485 37 522 
Net investment income$13,048 $1,544 $14,592 $10,824 $943 $11,767 $12,641 $1,971 $14,612 
(a)Included in the years ended December 31, 2022 and 2021 were income (loss) of $(195) million and $(49) million, respectively, related to fixed maturity securities measured at fair value that economically hedge liabilities described in (c) below.
(b)Included income from hedge funds, private equity funds and affordable housing partnerships. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag.
(c)Included in the years ended December 31, 2023, 2022 and 2021 were income (loss) of $(9) million, $186 million and $65 million, respectively, related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above.
Unrealized Gain (Loss) on Investments
The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments:
Years Ended December 31,
(in millions)20232022
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities$8,511 $(47,741)
Other investments— (25)
Total increase (decrease) in unrealized appreciation (depreciation) of investments*$8,511 $(47,766)
*Excludes net unrealized gains and losses attributable to businesses held for sale at December 31, 2023.
The following table summarizes the unrealized gains and losses recognized in Net investment income during the reporting period on equity securities and other investments still held at the reporting date:
Years Ended December 31,20232022
(in millions)EquitiesOther
Invested
Assets		TotalEquitiesOther
Invested
Assets		Total
Net gains (losses) recognized during the period on equity securities and other investments$94 $489 $583 $(53)$355 $302 
Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period163 (20)143 96 (23)73 
Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date$(69)$509 $440 $(149)$378 $229 
Debt Securities, Available-for-sale, Allowance for Credit Loss
The following table presents a rollforward of the changes in allowance for credit losses on available for sale fixed maturity securities by major investment category:
Years Ended December 31,202320222021
(in millions)StructuredNon-
Structured		TotalStructuredNon-
Structured		TotalStructuredNon-
Structured		Total
Balance, beginning of year$46 $140 $186 $8 $90 $98 $17 $169 $186 
Additions:
Securities for which allowance for credit losses were not previously recorded65 134 199 69 238 307 9 56 65 
Reductions:
Securities sold during the period(5)(35)(40)(3)(92)(95)(4)(29)(33)
Addition to (release of) the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intent to sell before recovery of amortized cost basis(10)31 21 (27)(64)(91)(14)(77)(91)
Write-offs charged against the allowance(30)(168)(198)— (30)(30)— (29)(29)
Other3 (9)(6)(1)(2)(3)— — — 
Balance, end of year$69 $93 $162 $46 $140 $186 $8 $90 $98 
Schedule of Financial Instruments Owned and Pledged as Collateral
The following table presents the fair value of securities pledged to counterparties under secured financing transactions, including repurchase and securities lending agreements:
(in millions)December 31, 2023December 31, 2022
Fixed maturity securities available for sale$2,723$2,968
The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity:
Remaining Contractual Maturity of the Agreements
(in millions)Overnight
and
Continuous		up to
30 days		31 - 90
days		91 - 364
days		365 days
or greater		Total
December 31, 2023
Bonds available for sale:
Non-U.S. governments$— $277 $— $— $— $277 
Corporate debt38 2,408 — — — 2,446 
Total$38 $2,685 $— $— $— $2,723 
Remaining Contractual Maturity of the Agreements
(in millions)Overnight
and
Continuous		up to
30 days		31 - 90
days		91 - 364
days		365 days
or greater		Total
December 31, 2022
Bonds available for sale:
Non-U.S. governments$— $20 $— $— $— $20 
Corporate debt— 2,371 577 — — 2,948 
Total$— $2,391 $577 $— $— $2,968 
The following table presents information on the fair value of securities pledged to us under reverse repurchase agreements:
(in millions)December 31, 2023December 31, 2022
Securities collateral pledged to us$1,200 $— 
Equity Method Investments Summarized Financial Information
The following is the aggregated summarized financial information of our equity method investees, including those for which the fair value option has been elected:
Years Ended December 31,
(in millions)202320222021
Operating results:
Total revenues$4,589 $28,500 $31,560 
Total expenses(2,212)(2,789)(2,241)
Net income$2,377 $25,711 $29,319 
At December 31,
(in millions)20232022
Balance sheet:
Total assets$59,359 $134,435 
Total liabilities$(5,893)$(14,701)