Future Policy Benefits (Tables)

6 Months Ended

Jun. 30, 2024

The following tables present the balances and changes in the liability for future policy benefits and a reconciliation of the net liability for future policy benefits to the liability for future policy benefits in the Condensed Consolidated Balance Sheets:


	Individual Retirement		Group Retirement		Life Insurance		Institutional Markets		Corporate and Other		Total
(in millions, except for liability durations)


Six Months Ended June 30, 2024
Present value of expected net premiums
Balance, beginning of year	$	—	$	—	$	8,379	$	—	$	973	$	9,352
Effect of changes in discount rate assumptions (AOCI)	—		—		1,482		—		44		1,526
Reclassified to Liabilities held-for-sale	—		—		4,287		—		—		4,287
Beginning balance at original discount rate	—		—		14,148		—		1,017		15,165

Effect of actual variances from expected experience	—		—		(12)		—		(6)		(18)
Adjusted beginning of year balance	—		—		14,136		—		1,011		15,147
Issuances	—		—		572		—		—		572
Interest accrual	—		—		202		—		22		224
Net premium collected	—		—		(634)		—		(57)		(691)
Foreign exchange impact	—		—		(46)		—		—		(46)
Other	—		—		(4)		—		—		(4)
Dispositions	—		—		(5,108)		—		—		(5,108)
Ending balance at original discount rate	—		—		9,118		—		976		10,094
Effect of changes in discount rate assumptions (AOCI)	—		—		(845)		—		(66)		(911)
Balance, end of period	$	—	$	—	$	8,273	$	—	$	910	$	9,183

Present value of expected future policy benefits
Balance, beginning of year	$	1,353	$	217	$	17,531	$	18,482	$	20,654	$	58,237
Effect of changes in discount rate assumptions (AOCI)	132		(3)		2,745		1,906		437		5,217
Reclassified to Liabilities held-for-sale	—		—		5,119		—		—		5,119
Beginning balance at original discount rate	1,485		214		25,395		20,388		21,091		68,573

Effect of actual variances from expected experience(a)	(21)		(2)		(10)		(12)		(16)		(61)
Adjusted beginning of year balance	1,464		212		25,385		20,376		21,075		68,512
Issuances	62		6		565		1,892		3		2,528
Interest accrual	32		6		435		439		503		1,415
Benefit payments	(67)		(12)		(814)		(594)		(731)		(2,218)
Foreign exchange impact	—		—		(61)		(75)		—		(136)
Other	—		(5)		(2)		—		(5)		(12)
Dispositions	—		—		(6,796)		—		—		(6,796)
Ending balance at original discount rate	1,491		207		18,712		22,038		20,845		63,293
Effect of changes in discount rate assumptions (AOCI)	(170)		(3)		(1,717)		(2,848)		(1,406)		(6,144)
Balance, end of period	$	1,321	$	204	$	16,995	$	19,190	$	19,439	$	57,149
Net liability for future policy benefits, end of period	1,321		204		8,722		19,190		18,529		47,966
Liability for future policy benefits for certain participating contracts	—		—		12		—		1,280		1,292
Liability for universal life policies with secondary guarantees and similar features(b)	—		—		3,916		—		55		3,971


Deferred profit liability	78		9		21		1,602		837		2,547
Other reconciling items(c)	30		—		457		—		92		579
Future policy benefits for life and accident and health insurance contracts	1,429		213		13,128		20,792		20,793		56,355
Less: Reinsurance recoverable:	(4)		—		(699)		(39)		(20,793)		(21,535)
Net liability for future policy benefits after reinsurance recoverable	$	1,425	$	213	$	12,429	$	20,753	$	—	$	34,820

Weighted average liability duration of the liability for future policy benefits(d)	7.5		6.6		10.9		11.8		10.9


	Individual Retirement		Group Retirement		Life Insurance		Institutional Markets		Corporate and Other		Total
(in millions, except for liability durations)


Six Months Ended June 30, 2023
Present value of expected net premiums
Balance, beginning of year	$	—	$	—	$	11,654	$	—	$	991	$	12,645
Effect of changes in discount rate assumptions (AOCI)	—		—		1,872		—		66		1,938
Beginning balance at original discount rate	—		—		13,526		—		1,057		14,583

Effect of actual variances from expected experience	—		—		10		—		6		16
Adjusted beginning of year balance	—		—		13,536		—		1,063		14,599
Issuances	—		—		666		—		—		666
Interest accrual	—		—		214		—		23		237
Net premium collected	—		—		(719)		—		(59)		(778)
Foreign exchange impact	—		—		206		—		—		206
Other	—		—		10		—		—		10
Ending balance at original discount rate	—		—		13,913		—		1,027		14,940
Effect of changes in discount rate assumptions (AOCI)	—		—		(1,904)		—		(61)		(1,965)
Balance, end of period	$	—	$	—	$	12,009	$	—	$	966	$	12,975

Present value of expected future policy benefits
Balance, beginning of year	$	1,223	$	211	$	21,179	$	12,464	$	20,429	$	55,506
Effect of changes in discount rate assumptions (AOCI)	167		2		3,424		2,634		1,083		7,310
Beginning balance at original discount rate	1,390		213		24,603		15,098		21,512		62,816

Effect of actual variances from expected experience(a)	(1)		—		36		17		(8)		44
Adjusted beginning of year balance	1,389		213		24,639		15,115		21,504		62,860
Issuances	120		6		656		3,301		3		4,086
Interest accrual	25		5		450		301		513		1,294
Benefit payments	(65)		(13)		(943)		(521)		(739)		(2,281)
Foreign exchange impact	—		—		236		308		—		544
Other	—		—		5		—		(6)		(1)
Ending balance at original discount rate	1,469		211		25,043		18,504		21,275		66,502
Effect of changes in discount rate assumptions (AOCI)	(158)		(1)		(3,386)		(2,752)		(822)		(7,119)
Balance, end of period	$	1,311	$	210	$	21,657	$	15,752	$	20,453	$	59,383
Net liability for future policy benefits, end of period	1,311		210		9,648		15,752		19,487		46,408
Liability for future policy benefits for certain participating contracts	—		—		13		—		1,316		1,329
Liability for universal life policies with secondary guarantees and similar features(b)	—		—		3,402		—		56		3,458


Deferred profit liability	86		10		17		1,468		869		2,450
Other reconciling items(c)	35		3		513		—		92		643
Future policy benefits for life and accident and health insurance contracts	1,432		223		13,593		17,220		21,820		54,288
Less: Reinsurance recoverable:	(4)		—		(1,148)		(39)		(21,820)		(23,011)
Net liability for future policy benefits after reinsurance recoverable	$	1,428	$	223	$	12,445	$	17,181	$	—	$	31,277

Weighted average liability duration of the liability for future policy benefits(d)	7.8		6.9		12.5		11.6		11.5

(a)Effect of changes in cash flow assumptions and variances from actual experience are partially offset by changes in the deferred profit liability.

(b)Additional details can be found in the table that presents the balances and changes in the liability for universal life policies with secondary guarantees and similar features.

(c)Other reconciling items primarily include the Accident and Health as well as Group Benefits (short-duration) contracts.

(d)The weighted average liability durations are calculated as the modified duration using projected future net liability cashflows that are aggregated at the segment level, utilizing the segment level weighted average interest rates and current discount rate, which can be found in the table below.

The following table presents the amount of undiscounted expected future benefit payments and undiscounted and discounted expected gross premiums for future policy benefits for nonparticipating contracts:


		Six Months Ended June 30,
(in millions)		2024		2023
Individual Retirement	Undiscounted expected future benefits and expense	$	2,139	$	2,115
	Undiscounted expected future gross premiums	$	—	$	—
	Discounted expected future gross premiums (at current discount rate)	$	—	$	—
Group Retirement	Undiscounted expected future benefits and expense	$	306	$	316
	Undiscounted expected future gross premiums	$	—	$	—
	Discounted expected future gross premiums (at current discount rate)	$	—	$	—
Life Insurance (a)	Undiscounted expected future benefits and expense	$	30,783	$	39,848
	Undiscounted expected future gross premiums	$	21,815	$	29,792
	Discounted expected future gross premiums (at current discount rate)	$	14,318	$	19,207
Institutional Markets	Undiscounted expected future benefits and expense	$	42,543	$	33,474
	Undiscounted expected future gross premiums	$	—	$	—
	Discounted expected future gross premiums (at current discount rate)	$	—	$	—
Corporate and other (b)	Undiscounted expected future benefits and expense	$	42,304	$	43,791
	Undiscounted expected future gross premiums	$	2,060	$	2,179
	Discounted expected future gross premiums (at current discount rate)	$	1,356	$	1,435

(a) 2023 includes balances related to AIG Life U.K.

(b) Represents activity ceded to Fortitude Re.

The following table presents the amount of revenue and interest recognized in the Condensed Consolidated Statements of Income (Loss) for future policy benefits for nonparticipating contracts:


	Gross Premiums				Interest Accretion
	Six Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023			2024		2023

Individual Retirement	$	70	$	136		$	32	$	25

Group Retirement	5		10			6		5

Life Insurance	1,070		1,175			233		236

Institutional Markets	1,981		3,500			439		301
Corporate and Other	103		107			481		490
Total	$	3,229	$	4,928		$	1,191	$	1,057

The following table presents the weighted-average interest rate for future policy benefits for nonparticipating contracts:


	Individual Retirement		Group Retirement		Life Insurance		Institutional Markets		Corporate and Other



June 30, 2024
Weighted-average interest rate, original discount rate	3.79	%	5.13	%	4.68	%	4.27	%	4.86	%
Weighted-average interest rate, current discount rate	5.48	%	5.44	%	5.56	%	5.43	%	5.54	%

June 30, 2023
Weighted-average interest rate, original discount rate	3.73	%	5.14	%	4.09	%	3.95	%	4.88	%
Weighted-average interest rate, current discount rate	5.27	%	5.26	%	5.27	%	5.34	%	5.25	%

The following table presents the balances and changes in the liability for universal life policies with secondary guarantees and similar features:


	Six Months Ended June 30,
	2024						2023
	Life Insurance		Corporate and Other		Total		Life Insurance		Corporate and Other		Total
(in millions, except duration of liability)


Balance, beginning of year	$	3,731	$	55	$	3,786	$	3,300	$	55	$	3,355

Effect of changes in experience	192		(2)		190		149		(1)		148
Adjusted beginning balance	$	3,923	$	53	$	3,976	$	3,449	$	54	$	3,503

Assessments	288		1		289		341		1		342
Excess benefits paid	(413)		—		(413)		(457)		—		(457)
Interest accrual	78		1		79		61		1		62
Other	—		—		—		(3)		—		(3)
Changes related to unrealized appreciation (depreciation) of investments	40		—		40		11		—		11
Balance, end of period	$	3,916	$	55	$	3,971	$	3,402	$	56	$	3,458
Less: Reinsurance recoverable	(175)		(55)		(230)		(172)		—		(172)
Balance, end of period, net of Reinsurance recoverable	$	3,741	$	—	$	3,741	$	3,230	$	56	$	3,286

Weighted average duration of liability *	25.1		9.0				26.2		9.2

*The weighted average duration of liabilities is calculated as the modified duration using projected future net liability cashflows that are aggregated at the segment level, utilizing the segment level weighted average interest rates, which can be found in the table below.

The following table presents the amount of revenue and interest recognized in the Condensed Consolidated Statements of Income (Loss) for the liability for universal life policies with secondary guarantees and similar features:


	Gross Assessments				Interest Accretion
	Six Months Ended June 30,					Six Months Ended June 30,
(in millions)	2024		2023			2024		2023





Life Insurance	$	500	$	573		$	78	$	61

Corporate and Other	19		20			1		1
Total	$	519	$	593		$	79	$	62

The following table presents the calculation of weighted average interest rate for the liability for universal life policies with secondary guarantees and similar features:


June 30,	2024				2023
	Life Insurance		Corporate and Other		Life Insurance		Corporate and Other



Weighted-average interest rate	3.92	%	4.20	%	3.77	%	4.20	%

The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment level, and are represented as an annual rate.

The following table presents details concerning our universal life policies with secondary guarantees and similar features:


	Six Months Ended June 30,
(in millions, except for attained age of contract holders)	2024		2023
Account value	$	3,846	$	3,604
Net amount at risk	$	74,076	$	70,850
Average attained age of contract holders	54		53

The following table presents the balances and changes in Policyholder contract deposits account balances(a):


	Individual Retirement			Group Retirement			Life Insurance			Institutional Markets			Corporate and other			Total
(in millions, except for average crediting rate)
Six Months Ended June 30, 2024
Policyholder contract deposits account balance, beginning of year	$	94,896		$	41,299		$	10,231		$	13,649		$	3,333		$	163,408
Deposits	11,696			2,637			816			2,682			21			17,852
Policy charges	(360)			(250)			(753)			(34)			(29)			(1,426)
Surrenders and withdrawals	(8,902)			(4,859)			(148)			(53)			(39)			(14,001)
Benefit payments	(1,422)			(993)			(153)			(1,028)			(143)			(3,739)
Net transfers from (to) separate account	2,570			2,026			9			—			—			4,605
Interest credited	1,670			611			243			320			80			2,924
Other	1			(207)			17			201			(1)			11
Policyholder contract deposits account balance, end of period	100,149			40,264			10,262			15,737			3,222			169,634
Other reconciling items(b)	(1,286)			(212)			161			27			—			(1,310)
Policyholder contract deposits	$	98,863		$	40,052		$	10,423		$	15,764		$	3,222		$	168,324
Weighted average crediting rate	2.84		%	3.08		%	4.43		%	4.45		%	4.98		%
Cash surrender value(c)	$	93,131		$	39,262		$	9,068		$	2,596		$	1,666		$	145,723


Six Months Ended June 30, 2023
Policyholder contract deposits account balance, beginning of year	$	89,554		$	43,395		$	10,224		$	11,734		$	3,587		$	158,494
Deposits	8,898			2,597			809			1,608			22			13,934
Policy charges	(462)			(238)			(764)			(34)			(31)			(1,529)
Surrenders and withdrawals	(6,585)			(3,979)			(122)			(421)			(42)			(11,149)
Benefit payments	(2,012)			(1,080)			(100)			(283)			(171)			(3,646)
Net transfers from (to) separate account	1,637			1,221			—			473			—			3,331
Interest credited	863			554			188			218			85			1,908
Other	(3)			4			(32)			(1)			8			(24)
Policyholder contract deposits account balance, end of period	91,890			42,474			10,203			13,294			3,458			161,319
Other reconciling items(b)	(1,598)			(254)			135			42			—			(1,675)
Policyholder contract deposits	$	90,292		$	42,220		$	10,338		$	13,336		$	3,458		$	159,644
Weighted average crediting rate	2.59		%	2.84		%	4.30		%	3.54		%	4.95		%
Cash surrender value(c)	$	85,417		$	41,550		$	8,976		$	2,555		$	1,762		$	140,260

(a)Transactions between the general account and the separate account are presented in this table on a gross basis (e.g., a policyholder's funds are initially deposited into the general account and then simultaneously transferred to the separate account), and thus, did not impact the ending balance of policyholder contract deposits.

(b)Reconciling items principally relate to MRBs that are bifurcated and reported separately, net of embedded derivatives that are recorded in policyholder contract deposits.

(c)Cash surrender value is related to the portion of policyholder contract deposits that have a defined cash surrender value (e.g. GICs do not have a cash surrender value).

For information related to net amount at risk, refer to the table that presents the balances of and changes in MRBs in Note 14.

The following table presents Policyholder contract deposits account balance by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums:


June 30, 2024		At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		More than 50 Basis Points Above Minimum Guarantee		Total
(in millions, except percentage of total)
Individual Retirement	Range of Guaranteed Minimum Credited Rate
	<=1%	$	6,010	$	1,794	$	31,449	$	39,253
	> 1% - 2%	3,380		21		1,262		4,663
	> 2% - 3%	7,367		12		1,898		9,277
	> 3% - 4%	6,114		34		5		6,153
	> 4% - 5%	418		—		4		422
	> 5%	32		2		3		37
	Total	$	23,321	$	1,863	$	34,621	$	59,805








Group Retirement	Range of Guaranteed Minimum Credited Rate
	<=1%	$	2,103	$	1,841	$	8,062	$	12,006
	> 1% - 2%	3,449		781		933		5,163
	> 2% - 3%	11,277		272		113		11,662
	> 3% - 4%	588		—		—		588
	> 4% - 5%	6,503		—		—		6,503
	> 5%	140		—		—		140
	Total	$	24,060	$	2,894	$	9,108	$	36,062

Life Insurance	Range of Guaranteed Minimum Credited Rate
	<=1%	$	—	$	—	$	—	$	—
	> 1% - 2%	—		109		367		476
	> 2% - 3%	9		623		1,299		1,931
	> 3% - 4%	1,179		479		7		1,665
	> 4% - 5%	2,785		—		—		2,785
	> 5%	212		—		—		212
	Total	$	4,185	$	1,211	$	1,673	$	7,069

Total*		$	51,566	$	5,968	$	45,402	$	102,936
Percentage of total		50%		6%		44%		100%


June 30, 2023		At Guaranteed Minimum		1 Basis Point - 50 Basis Points Above		More than 50 Basis Points Above Minimum Guarantee		Total
(in millions, except percentage of total)
Individual Retirement	Range of Guaranteed Minimum Credited Rate
	<=1%	$	7,044	$	2,390	$	23,797	$	33,231
	> 1% - 2%	4,151		23		2,067		6,241
	> 2% - 3%	8,831		11		732		9,574
	> 3% - 4%	7,122		39		6		7,167
	> 4% - 5%	446		—		4		450
	> 5%	32		—		4		36
	Total	$	27,626	$	2,463	$	26,610	$	56,699









Group Retirement	Range of Guaranteed Minimum Credited Rate
	<=1%	$	2,018	$	2,574	$	6,382	$	10,974
	> 1% - 2%	4,050		1,624		391		6,065
	> 2% - 3%	13,123		89		62		13,274
	> 3% - 4%	651		—		—		651
	> 4% - 5%	6,799		—		—		6,799
	> 5%	151		—		—		151
	Total	$	26,792	$	4,287	$	6,835	$	37,914

Life Insurance	Range of Guaranteed Minimum Credited Rate
	<=1%	$	—	$	—	$	—	$	—
	> 1% - 2%	—		131		350		481
	> 2% - 3%	10		872		1,083		1,965
	> 3% - 4%	1,190		322		201		1,713
	> 4% - 5%	2,909		—		—		2,909
	> 5%	221		—		—		221
	Total	$	4,330	$	1,325	$	1,634	$	7,289

Total*		$	58,748	$	8,075	$	35,079	$	101,902
Percentage of total		58%		8%		34%		100%

*Excludes policyholder contract deposits account balances that are not subject to guaranteed minimum crediting rates.

The following table presents a rollforward of the unearned revenue reserve for the six months ended June 30, 2024 and 2023:


	Life Insurance		Institutional Markets		Corporate and Other		Total
(in millions)


Six Months Ended June 30, 2024
Balance, beginning of year	$	1,770	$	1	$	94	$	1,865
Revenue deferred	80		—		—		80


Amortization	(56)		—		(5)		(61)

Balance, end of period	$	1,794	$	1	$	89	$	1,884
Other reconciling items*							969
Other policyholder funds							$	2,853

Six Months Ended June 30, 2023
Balance, beginning of year	$	1,727	$	2	$	105	$	1,834
Revenue deferred	76		—		—		76


Amortization	(55)		(1)		(5)		(61)

Balance, end of period	$	1,748	$	1	$	100	$	1,849
Other reconciling items*							1,042
Other policyholder funds							$	2,891

*Other reconciling items include policyholders' dividend accumulations, provisions for future dividends to participating policyholders, dividends to policyholders and any similar items.