v3.24.0.1
Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Schedule of funded status of the plans reconciled to the amount reported in the balance sheets
The following table presents the funded status of the plans reconciled to the amount reported in the Consolidated Balance Sheets.
As of or for the Years EndedPensionPostretirement
December 31,
U.S. Plans(a)
Non-U.S. Plans(a)
U.S. PlansNon-U.S. Plans
(in millions)20232022202320222023202220232022
Change in projected benefit obligation:
Benefit obligation, beginning of year$3,475 $4,795 $826 $1,157 $131 $174 $32 $47 
Service cost5 5 16 18 1 1 — — 
Interest cost168 109 20 10 6 4 2 1 
Actuarial (gain) loss(b)
75 (1,082)(8)(183)3 (36)(2)(14)
Benefits paid:
AIG assets(16)(19)(10)(8)(12)(12)(1)(1)
Plan assets(171)(174)(31)(26)— — — — 
Plan amendment— — (1)1 — — — — 
Settlements(234)(157)(17)(3)— — — — 
Foreign exchange effect— — 9 (139)— — — (1)
Other(1)(2)— (1)— — — — 
Projected benefit obligation, end of year$3,301 $3,475 $804 $826 $129 $131 $31 $32 
Change in plan assets:
Fair value of plan assets, beginning of year$3,345 $4,746 $731 $996 $— $— $— $— 
Actual return on plan assets, net of expenses288 (1,070)15 (133)— — — — 
AIG contributions16 19 47 42 12 12 1 1 
Benefits paid:
AIG assets(16)(19)(10)(8)(12)(12)(1)(1)
Plan assets(171)(174)(31)(26)— — — — 
Settlements(234)(157)(23)(3)— — — — 
Foreign exchange effect— — 5 (137)— — — — 
Fair value of plan assets, end of year$3,228 $3,345 $734 $731 $— $— $— $— 
Funded status, end of year$(73)$(130)$(70)$(95)$(129)$(131)$(31)$(32)
Amounts recognized in the balance sheet:
Assets$110 $55 $97 $78 $— $— $— $— 
Liabilities(183)(185)(167)(173)(129)(131)(31)(32)
Total amounts recognized$(73)$(130)$(70)$(95)$(129)$(131)$(31)$(32)
Pre-tax amounts recognized in AOCI:
Net gain (loss)$(1,142)$(1,279)$(79)$(70)$31 $39 $23 $24 
Prior service (cost) credit— — (21)(25)— — 1 1 
Total amounts recognized$(1,142)$(1,279)$(100)$(95)$31 $39 $24 $25 
(a)Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $184 million and $186 million for the U.S. at December 31, 2023 and 2022, respectively, and $140 million and $143 million for the non-U.S. at December 31, 2023 and 2022, respectively.
(b)The primary reason for the significant decrease in 2023 is due to a change in the discount rate for the U.S. AIG Retirement Plan.
Schedule of accumulated benefit obligations
The following table presents the accumulated benefit obligations for U.S. and non-U.S. pension benefit plans:
At December 31,
(in millions)20232022
U.S. pension benefit plans$3,301 $3,475 
Non-U.S. pension benefit plans$792 $815 
Schedule of periodic benefit costs with respect to pensions and other postretirement benefits
The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits:
Years Ended December 31,
Pension
Postretirement
U.S. PlansNon-U.S. PlansU.S. PlansNon-U.S. Plans
(in millions)202320222021202320222021202320222021202320222021
Components of net periodic benefit cost:
Service cost*$5 $5 $5 $16 $18 $21 $1 $1 $1 $— $— $1 
Interest cost168 109 92 20 10 9 6 4 3 2 1 2 
Expected return on assets(193)(213)(243)(21)(17)(21)— — — — — — 
Amortization of prior service cost (credit)— — — 3 3 3 — — — (1)— — 
Amortization of net (gain) loss33 24 33 2 4 7 (5)— — (3)(1)1 
Net periodic benefit cost (credit)$13 $(75)$(113)$20 $18 $19 $2 $5 $4 $(2)$— $4 
Settlement loss84 60 34 — — 1 — — — — — — 
Net benefit cost (credit)$97 $(15)$(79)$20 $18 $20 $2 $5 $4 $(2)$— $4 
Total recognized in AOCI$136 $(117)$332 $5 $57 $65 $(8)$36 $10 $(2)$13 $27 
Total recognized in net periodic benefit cost and other comprehensive income (loss)$40 $(102)$411 $(14)$39 $45 $(10)$31 $6 $— $13 $23 
*Reflects administrative fees for the U.S. pension plans.
Schedule of projected benefit obligation in excess of the plan assets and the accumulated benefit obligation in excess of the plan assets
Defined benefit plan obligations in which the projected benefit obligation (PBO) was in excess of the related plan assets and the accumulated benefit obligation (ABO) was in excess of the related plan assets were as follows:
At December 31,PBO Exceeds Fair Value of Plan AssetsABO Exceeds Fair Value of Plan Assets
U.S. PlansNon-U.S. PlansU.S. PlansNon-U.S. Plans
(in millions)20232022202320222023202220232022
Projected benefit obligation$184 $185 $287 $280 $— $— $— $— 
Accumulated benefit obligation— — — — 184 186 245 238 
Fair value of plan assets— — 88 76 — — 88 76 
Schedule of weighted average assumptions used to determine the benefit obligations
The following table summarizes the weighted average assumptions used to determine the benefit obligations:
PensionPostretirement
U.S. Plans
Non-U.S. Plans(a)
U.S. Plans
Non-U.S. Plans(a)
December 31, 2023
Discount rate4.98 %2.85 %4.97 %5.37 %
Interest crediting rate4.94 %1.40 %
(b)
N/AN/A
Rate of compensation increaseN/A
(c)
2.42 %N/AN/A
December 31, 2022
Discount rate5.22 %2.51 %5.19 %5.23 %
Interest crediting rate4.02 %1.07 %
(b)
N/AN/A
Rate of compensation increaseN/A
(c)
2.38 %N/AN/A
(a)The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits.
(b)Represents the weighted average interest crediting rate of non-U.S. cash balance plans primarily in Japan and Switzerland.
(c)Compensation increases are no longer applicable as the plan is frozen effective January 1, 2016.
Schedule of assumed health care cost trend rates
The following table summarizes assumed health care cost trend rates for the U.S. plans:
At December 31,20232022
Following year:
Medical (before age 65)5.78 %6.01 %
Medical (age 65 and older)4.93 %4.95 %
Ultimate rate to which cost increase is assumed to decline4.00 %4.00 %
Year in which the ultimate trend rate is reached:
Medical (before age 65)20462046
Medical (age 65 and older)20462046
Schedule of weighted average assumptions used to determine the net periodic benefit costs
The following table presents the weighted average assumptions used to determine the net periodic benefit costs:
PensionPostretirement
U.S. Plans
Non-U.S. Plans(a)
U.S. Plans
Non-U.S. Plans(a)
For the Year Ended December 31, 2023
Discount rate5.22 %2.51 %5.19 %5.23 %
Interest crediting rate4.02 %1.07 %
(b)
N/AN/A
Rate of compensation increaseN/A2.38 %N/AN/A
Expected return on assets6.25 %2.67 %N/AN/A
For the Year Ended December 31, 2022
Discount rate2.75 %1.09 %2.87 %2.89 %
Interest crediting rate2.06 %0.70 %
(b)
2.20 %N/A
Rate of compensation increaseN/A2.40 %N/AN/A
Expected return on assets4.65 %1.84 %2.78 %N/A
For the Year Ended December 31, 2021
Discount rate2.28 %1.00 %2.45 %2.33 %
Interest crediting rate1.57 %0.72 %
(b)
N/AN/A
Rate of compensation increaseN/A2.28 %N/AN/A
Expected return on assets5.15 %2.23 %N/AN/A
(a)The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits.
(b)Represents the weighted average interest crediting rate of non-U.S. cash balance plans primarily in Japan and Switzerland.
Schedule of asset allocation percentage by major asset class and target allocation
The following table presents the asset allocation percentage by major asset class for the U.S. qualified plan and the target allocation for 2024 based on the plan’s funded status at December 31, 2023:
At December 31,Target 2024Actual 2023Actual 2022
Asset class:
Equity securities9 %8 %6 %
Fixed maturity securities80 77 77 
Other investments11 15 17 
Total100 %100 %100 %
The following table presents the asset allocation percentage by major asset class for non-U.S. pension plans and the target allocation:
At December 31,Target 2024Actual 2023Actual 2022
Asset class:
Equity securities21 %19 %24 %
Fixed maturity securities58 45 44 
Other investments17 21 23 
Cash and cash equivalents4 15 9 
Total100 %100 %100 %
Schedule of plan assets based on the level within the fair value hierarchy in which the fair value measurement falls
The following table presents information about our plan assets and indicates the level of the fair value measurement based on the observability of the inputs used. The inputs and methodology used in determining the fair value of these assets are consistent with those used to measure our assets as discussed in Note 5 to the Consolidated Financial Statements.
U.S. PlansNon-U.S. Plans
(in millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
December 31, 2023
Assets:
Cash and cash equivalents$54 $— $— $54 $108 $— $— $108 
Equity securities:
U.S.(a)
140 — — 140 — — — — 
International(b)
4 — — 4 104 35 — 139 
Fixed maturity securities:
U.S. investment grade(c)
24 2,230 10 2,264 — — — — 
International investment grade(c)
— 125 — 125 — 138 — 138 
U.S. and international high yield(d)
— 33 — 33 — 192 — 192 
Mortgage and other asset-backed securities— 59 1 60 — — — — 
Other fixed maturity securities— 12 — 12 — — — — 
Other investment types(e):
Futures10 — — 10 — — — — 
Insurance contracts— 9 — 9 — — 138 138 
Mutual funds(g)
— — — — — 19 — 19 
Total$232 $2,468 $11 $2,711 $212 $384 $138 $734 
December 31, 2022
Assets:
Cash and cash equivalents$119 $— $— $119 $64 $— $— $64 
Equity securities:
U.S.(a)
90 — — 90 — — — — 
International(b)
5 — — 5 130 44 — 174 
Fixed maturity securities:
U.S. investment grade(c)
45 2,213 10 2,268 — — — — 
International investment grade(c)
— 177 — 177 — 140 — 140 
U.S. and international high yield(d)
— 58 — 58 — 184 — 184 
Mortgage and other asset-backed securities— 43 5 48 — — — — 
Other investment types(e):
Futures(15)— — (15)— — — — 
Direct private equity(f)
— — 5 5 — — — — 
Insurance contracts— 10 — 10 — — 134 134 
Mutual funds(g)
— — — — — 35 — 35 
Total$244 $2,501 $20 $2,765 $194 $403 $134 $731 
(a)Includes passive and active U.S. equity strategies.
(b)Includes passive and active international equity strategies.
(c)Includes investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds.
(d)Consists primarily of investments in securities or debt obligations that have a rating below investment grade.
(e)Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $517 million and $580 million at December 31, 2023 and 2022, respectively.
(f)Comprised of private capital financing including private debt and private equity securities.
(g)Comprised of mutual fund investing in variety of equity, derivatives, and bonds.
Schedule of changes in Level 3 plan assets measured at fair value
The following table presents changes in our U.S. and non-U.S. Level 3 plan assets measured at fair value:
December 31, 2023Balance
Beginning
of year		Net
Realized
and
Unrealized
Gains
(Losses)		PurchasesSalesIssuancesSettlementsTransfers
In		Transfers
Out		Balance
at End
of Year		Changes in
Unrealized
Gains (Losses)
on Instruments
Held at
End of Year		Changes in Unrealized
Gains (Losses) included
in other Comprehensive
Income (Loss) for Recurring
Level 3 Instruments
Held at End of Year
(in millions)
U.S. Plan Assets:
Fixed maturity securities
U.S. investment grade$10 $1 $— $(1)$— $— $— $— $10 $1 $— 
Mortgage and other asset backed securities5 — — (4)— — — — 1 1 — 
Direct private equity5 (5)— — — — — — — (5)— 
Total$20 $(4)$— $(5)$— $— $— $— $11 $(3)$— 
Non-U.S. Plan Assets:
Insurance contracts$134 $6 $1 $— $— $(3)$— $— $138 $— $— 
Total$134 $6 $1 $— $— $(3)$— $— $138 $— $— 
December 31, 2022
U.S. Plan Assets:
Fixed maturity securities
U.S. investment grade$16 $(4)$4 $— $— $— $— $(6)$10 $(4)$— 
Mortgage and other asset backed securities1 (1)3 — — — 2 — 5 (1)— 
Direct private equity8 (1)— (2)— — — — 5 (2)— 
Total$25 $(6)$7 $(2)$— $— $2 $(6)$20 $(7)$— 
Non-U.S. Plan Assets:
Insurance contracts$171 $(43)$4 $— $— $— $2 $— $134 $— $— 
Total$171 $(43)$4 $— $— $— $2 $— $134 $— $— 
Schedule of expected future benefit payments, net of participants' contributions
The expected future benefit payments, net of participants’ contributions, with respect to the defined benefit pension plans and other postretirement benefit plans, are as follows:
PensionPostretirement
(in millions)U.S. PlansNon-U.S. PlansU.S. PlansNon-U.S. Plans
2024$270 $43 $11 $1 
2025264 45 11 2 
2026267 47 10 2 
2027265 49 10 2 
2028265 53 9 2 
2029-20331,216 255 43 10