Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 08, 2022 | Jun. 30, 2021 | |
Entity Listings [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | American International Group, Inc. | ||
Entity Central Index Key | 0000005272 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock Shares Outstanding | 814,757,881 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 1-8787 | ||
Entity Incorporation State Country Code | DE | ||
Entity Tax Identification Number | 13-2592361 | ||
Entity Address Address Line 1 | 1271 Avenue of the Americas | ||
Entity Address City Or Town | New York | ||
Entity Address State Or Province | NY | ||
Entity Address Postal Zip Code | 10020 | ||
City Area Code | 212 | ||
Local Phone Number | 770-7000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Voluntary Filers | No | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Public Float | $ 40,695,000,000 | ||
Documents Incorporated By Reference | Document of the Registrant Form 10-K Reference Locations Portions of the registrant’s definitive proxy statement for the 2022 Annual Meeting of Shareholders Part II, Item 5 and Part III, Items 10, 11, 12, 13 and 14 | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Firm ID | 238 | ||
Auditor Location | New York, New York | ||
Common Stock | |||
Entity Listings [Line Items] | |||
Security 12b Title | Common Stock, Par Value $2.50 Per Share | ||
Entity Listing Par Value Per Share | $ 2.50 | ||
Trading Symbol | AIG | ||
Security Exchange Name | NYSE | ||
5.75% Series A-2 Junior Subordinated Debentures | |||
Entity Listings [Line Items] | |||
Security 12b Title | 5.75% Series A-2 Junior Subordinated Debentures | ||
Trading Symbol | AIG 67BP | ||
Security Exchange Name | NYSE | ||
4.875% Series A-3 Junior Subordinated Debentures | |||
Entity Listings [Line Items] | |||
Security 12b Title | 4.875% Series A-3 Junior Subordinated Debentures | ||
Trading Symbol | AIG 67EU | ||
Security Exchange Name | NYSE | ||
Stock Purchase Rights | |||
Entity Listings [Line Items] | |||
Security 12b Title | Stock Purchase Rights | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NYSE | ||
Depository Shares Each Representing 1/1,000th Interest in a Share of Series A 5.85% Non-Cumulative Perpetual Preferred Stock | |||
Entity Listings [Line Items] | |||
Security 12b Title | Depositary Shares Each Representing a 1/1,000th Interest in a Share of Series A 5.85% Non-Cumulative Perpetual Preferred Stock | ||
Trading Symbol | AIG PRA | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | |
Fixed maturity securities: | |||
Bonds available for sale, at fair value, net of allowance for credit losses of $98 in 2021 and $186 in 2020 (amortized cost: 2021 - $259,210; 2020 - $244,337) | [1] | $ 277,202,000,000 | $ 271,496,000,000 |
Other bond securities, at fair value (See Note 5) | [1] | 6,278,000,000 | 5,291,000,000 |
Equity Securities, at fair value (See Note 5) | [1] | 739,000,000 | 1,056,000,000 |
Mortgage and other loans receivable, net of allowance for credit losses of $629 in 2021 and $814 in 2020 | [1] | 46,048,000,000 | 45,562,000,000 |
Other invested assets (portion measured at fair value: 2021 - $10,504; 2020 - $8,422) | [1] | 15,668,000,000 | 19,060,000,000 |
Short-term investments, including restricted cash of $197 in 2021 and $180 in 2020 (portion measured at fair value: 2021 - $4,426; 2020 - $5,968) | [1] | 13,357,000,000 | 18,203,000,000 |
Total investments | 359,292,000,000 | 360,668,000,000 | |
Cash | [1] | 2,198,000,000 | 2,827,000,000 |
Accrued investment income | [1] | 2,239,000,000 | 2,271,000,000 |
Premiums and other receivables, net of allowance for credit losses and disputes of $185 in 2021 and $205 in 2020 | 12,409,000,000 | 11,333,000,000 | |
Deferred income taxes | 11,714,000,000 | 12,624,000,000 | |
Deferred policy acquisition costs | 10,514,000,000 | 9,805,000,000 | |
Other assets, net of allowance for credit losses of $49 in 2021 and $49 in 2020, including restricted cash of $32 in 2021 and $223 in 2020 (portion measured at fair value: 2021 - $957; 2020 - $887) | [1] | 14,351,000,000 | 13,122,000,000 |
Separate account assets, at fair value | 109,111,000,000 | 100,290,000,000 | |
Total assets | 596,112,000,000 | 586,481,000,000 | |
Liabilities: | |||
Liability for unpaid losses and loss adjustment expenses, including allowance for credit losses of $14 in 2021 and $14 in 2020 | 79,026,000,000 | 77,720,000,000 | |
Unearned premiums | 19,313,000,000 | 18,660,000,000 | |
Future policy benefits for life and accident and health insurance contracts | 59,950,000,000 | 56,878,000,000 | |
Policyholder contract deposits (portion measured at fair value: 2021 - $9,736; 2020 - $9,798) | 156,686,000,000 | 154,470,000,000 | |
Other policyholder funds | 3,476,000,000 | 3,548,000,000 | |
Fortitude Re funds withheld payable (portion measured at fair value: 2021 - $5,922; 2020 - $6,042) | 40,771,000,000 | 43,060,000,000 | |
Other liabilities (portion measured at fair value: 2021 - $586; 2020 - $570) | [1] | 28,704,000,000 | 27,122,000,000 |
Long-term debt | [1] | 30,163,000,000 | 37,534,000,000 |
Separate account liabilities | 109,111,000,000 | 100,290,000,000 | |
Total liabilities | 527,200,000,000 | 519,282,000,000 | |
Contingencies, commitments and guarantees (see Note 15) | |||
AIG shareholders' equity: | |||
Series A non-cumulative preferred stock and additional paid in capital, $5.00 par value; 100,000,000 shares authorized; shares issued: 2021 - 20,000 and 2020 - 20,000; liquidation preference $500 | 485,000,000 | 485,000,000 | |
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2021 - 1,906,671,492 and 2020 - 1,906,671,492 | 4,766,000,000 | 4,766,000,000 | |
Treasury stock, at cost; 2021 - 1,087,984,129 shares; 2020 - 1,045,113,443 shares of common stock | (51,618,000,000) | (49,322,000,000) | |
Additional paid-in capital | 81,851,000,000 | 81,418,000,000 | |
Retained earnings | 23,785,000,000 | 15,504,000,000 | |
Accumulated other comprehensive income | 6,687,000,000 | 13,511,000,000 | |
Total AIG shareholders' equity | 65,956,000,000 | 66,362,000,000 | |
Non-redeemable noncontrolling interests | 2,956,000,000 | 837,000,000 | |
Total equity | 68,912,000,000 | 67,199,000,000 | |
Total liabilities and equity | 596,112,000,000 | 586,481,000,000 | |
Excluding Fortitude | |||
Fixed maturity securities: | |||
Reinsurance assets, net of allowance for credit losses and disputes | 40,919,000,000 | 38,963,000,000 | |
Fortitude | |||
Fixed maturity securities: | |||
Reinsurance assets, net of allowance for credit losses and disputes | 33,365,000,000 | 34,578,000,000 | |
American International Group, Inc. | |||
Liabilities: | |||
Long-term debt | 23,741,000,000 | 28,103,000,000 | |
Debt of consolidated investments | |||
Liabilities: | |||
Long-term debt | [1] | $ 6,422,000,000 | $ 9,431,000,000 |
[1] | See Note 9 for details of balances associated with variable interest entities. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical - assets and liabilities) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Bonds available for sale, allowance for credit losses | $ 98 | $ 186 |
Bonds available for sale, amortized cost | 259,210 | 244,337 |
Mortgage and other loans receivable, allowance for credit losses | 629 | 814 |
Other invested assets, portion measured at fair value | 10,504 | 8,422 |
Short-term investments, portion measured at fair value | 4,426 | 5,968 |
Premiums and other receivables, allowance for credit losses and disputes | 185 | 205 |
Reinsurance assets, allowance for credit losses and disputes | 333 | 326 |
Other assets, allowance for credit losses | 49 | 49 |
Other assets, portion measured at fair value | 957 | 887 |
Liabilities: | ||
Liability for unpaid losses and loss adjustment expenses, allowance for credit losses | 14 | 14 |
Policyholder contract deposits, portion measured at fair value | 9,736 | 9,798 |
Fortitude Re funds withheld payable, portion measured at fair value | 5,922 | 6,042 |
Other liabilities, portion measured at fair value | 586 | 570 |
Long-term debt, portion measured at fair value | 1,871 | 2,097 |
Fortitude | ||
Assets: | ||
Reinsurance assets, allowance for credit losses and disputes | 0 | 0 |
Other assets | ||
Assets: | ||
Short-term investments, restricted cash | 32 | 223 |
Short-term investments | ||
Assets: | ||
Short-term investments, restricted cash | $ 197 | $ 180 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Parenthetical - equity) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
AIG shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 20,000 | 20,000 |
Preferred stock liquidation preference | $ 500 | $ 500 |
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.5 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 1,906,671,492 | 1,906,671,492 |
Treasury stock, shares of common stock | 1,087,984,129 | 1,045,113,443 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Premiums | $ 31,259 | $ 28,523 | $ 30,561 |
Policy fees | 3,051 | 2,917 | 3,015 |
Net investment income | 14,612 | 13,631 | 14,619 |
Net realized gains (losses) | 2,151 | (2,238) | 632 |
Other income | 984 | 903 | 919 |
Total revenues | 52,057 | 43,736 | 49,746 |
Benefits, losses and expenses: | |||
Policyholder benefits and losses incurred | 24,388 | 24,806 | 25,402 |
Interest credited to policyholder account balances | 3,557 | 3,622 | 3,832 |
Amortization of deferred policy acquisition costs | 4,573 | 4,211 | 5,164 |
General operating and other expenses | 8,790 | 8,396 | 8,537 |
Interest expense | 1,305 | 1,457 | 1,417 |
Losses on extinguishment of debt | 389 | 12 | 32 |
Net (gain) loss on divestitures | (3,044) | 8,525 | 75 |
Total benefits, losses and expenses | 39,958 | 51,029 | 44,459 |
Income (loss) from continuing operations before income tax expense (benefit) | 12,099 | (7,293) | 5,287 |
Current | (45) | 217 | 545 |
Deferred | 2,221 | (1,677) | 621 |
Income tax expense (benefit) | 2,176 | (1,460) | 1,166 |
Income (loss) from continuing operations | 9,923 | (5,833) | 4,121 |
Income from discontinued operations, net of income taxes | 0 | 4 | 48 |
Net income (loss) | 9,923 | (5,829) | 4,169 |
Less: | |||
Net income from continuing operations attributable to noncontrolling interests | 535 | 115 | 821 |
Net income (loss) attributable to AIG | 9,388 | (5,944) | 3,348 |
Less: Dividends on peferred stock | 29 | 29 | 22 |
Net income (loss) attributable to AIG common shareholders | $ 9,359 | $ (5,973) | $ 3,326 |
Basic: | |||
Income (loss) from continuing operations | $ 10.95 | $ (6.88) | $ 3.74 |
Income (loss) from discontinued operations | 0 | 0 | 0.05 |
Net income (loss) attributable to AIG common shareholders | 10.95 | (6.88) | 3.79 |
Diluted: | |||
Income (loss) from continuing operations | 10.82 | (6.88) | 3.69 |
Income (loss) from discontinued operations | 0 | 0 | 0.05 |
Net income (loss) attributable to AIG common shareholders | $ 10.82 | $ (6.88) | $ 3.74 |
Weighted average shares outstanding: | |||
Basic | 854,320,449 | 869,309,458 | 876,750,264 |
Diluted | 864,884,879 | 869,309,458 | 889,511,946 |
Excluding Fortitude Re funds withheld assets | |||
Revenues: | |||
Net investment income | $ 12,641 | $ 12,578 | $ 14,619 |
Net realized gains (losses) | 1,751 | (56) | 632 |
Fortitude Re funds withheld assets | |||
Revenues: | |||
Net investment income | 1,971 | 1,053 | 0 |
Net realized gains (losses) | 1,003 | 463 | 0 |
Benefits, losses and expenses: | |||
Policyholder benefits and losses incurred | 21 | ||
Fortitude Re funds withheld embedded derivative | |||
Revenues: | |||
Net realized gains (losses) | $ (603) | $ (2,645) | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Comprehensive Income (Loss) | |||
Net income (loss) | $ 9,923 | $ (5,829) | $ 4,169 |
Other comprehensive income (loss), net of tax | |||
Change in unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken | 35 | (95) | 0 |
Change in unrealized appreciation of fixed maturity securities on which other-than-temporary credit impairments were taken | 0 | 0 | 661 |
Change in unrealized appreciation (depreciation) of all other investments | (6,001) | 8,354 | 5,689 |
Change in foreign currency translation adjustments | (187) | 359 | 104 |
Change in retirement plan liabilities adjustment | 325 | (106) | (36) |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | (2) | 1 | (3) |
Other comprehensive income (loss) | (5,830) | 8,513 | 6,415 |
Comprehensive income | 4,093 | 2,684 | 10,584 |
Comprehensive income attributable to noncontrolling interests | 430 | 99 | 841 |
Comprehensive income attributable to AIG | $ 3,663 | $ 2,585 | $ 9,743 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Cumulative effect of change in accounting principle | Total AIG Shareholders' Equity | Total AIG Shareholders' EquityCumulative effect of change in accounting principle | Preferred Stock and Additional Paid-In Capital | Preferred Stock and Additional Paid-In CapitalCumulative effect of change in accounting principle | Common Stock | Common StockCumulative effect of change in accounting principle | Treasury Stock | Treasury StockCumulative effect of change in accounting principle | Additional Paid-in Capital | Additional Paid-in CapitalCumulative effect of change in accounting principle | Retained Earnings | Retained EarningsCumulative effect of change in accounting principle | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeCumulative effect of change in accounting principle | Non redeemable Non-controlling Interests | Non redeemable Non-controlling InterestsCumulative effect of change in accounting principle |
Balance at Dec. 31, 2018 | $ 57,309 | $ 56,361 | $ 0 | $ 4,766 | $ (49,144) | $ 81,268 | $ 20,884 | $ (1,413) | $ 948 | |||||||||
Preferred stock issued | 485 | 485 | 485 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Common stock issued under stock plans | (80) | (80) | 0 | 0 | 156 | (236) | 0 | 0 | 0 | |||||||||
Purchase of common stock | 0 | |||||||||||||||||
Net income (loss) attributable to AIG or noncontrolling interests | 4,169 | 3,348 | 0 | 0 | 0 | 0 | 3,348 | 0 | 821 | |||||||||
Dividends on preferred stock | (22) | (22) | 0 | 0 | 0 | 0 | (22) | 0 | 0 | |||||||||
Dividends on common stock | (1,114) | (1,114) | 0 | 0 | 0 | 0 | (1,114) | 0 | 0 | |||||||||
Other comprehensive income (loss) | 6,415 | 6,395 | 0 | 0 | 0 | 0 | 0 | 6,395 | 20 | |||||||||
Net increase due to divestitures and acquisitions | 65 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 65 | |||||||||
Contributions from noncontrolling interests | 19 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 19 | |||||||||
Distributions to noncontrolling interests | (131) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (131) | |||||||||
Other | 312 | 302 | 0 | 0 | 1 | 313 | (12) | 0 | 10 | |||||||||
Balance at Dec. 31, 2019 | 67,427 | $ (487) | 65,675 | $ (487) | 485 | $ 0 | 4,766 | $ 0 | (48,987) | $ 0 | 81,345 | $ 0 | 23,084 | $ (487) | 4,982 | $ 0 | 1,752 | $ 0 |
Common stock issued under stock plans | (99) | (99) | 0 | 0 | 172 | (271) | 0 | 0 | 0 | |||||||||
Purchase of common stock | (500) | (500) | 0 | 0 | (500) | 0 | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to AIG or noncontrolling interests | (5,829) | (5,944) | 0 | 0 | 0 | 0 | (5,944) | 0 | 115 | |||||||||
Dividends on preferred stock | (29) | (29) | 0 | 0 | 0 | 0 | (29) | 0 | 0 | |||||||||
Dividends on common stock | (1,103) | (1,103) | 0 | 0 | 0 | 0 | (1,103) | 0 | 0 | |||||||||
Other comprehensive income (loss) | 8,513 | 8,529 | 0 | 0 | 0 | 0 | 0 | 8,529 | (16) | |||||||||
Net increase due to divestitures and acquisitions | (958) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (958) | |||||||||
Contributions from noncontrolling interests | 108 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 108 | |||||||||
Distributions to noncontrolling interests | (156) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (156) | |||||||||
Other | 312 | 320 | 0 | 0 | (7) | 344 | (17) | 0 | (8) | |||||||||
Balance at Dec. 31, 2020 | 67,199 | 66,362 | 485 | 4,766 | (49,322) | 81,418 | 15,504 | 13,511 | 837 | |||||||||
Common stock issued under stock plans | (64) | (64) | 0 | 0 | 217 | (281) | 0 | 0 | 0 | |||||||||
Purchase of common stock | (2,643) | (2,643) | 0 | 0 | (2,614) | (29) | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to AIG or noncontrolling interests | 9,923 | 9,388 | 0 | 0 | 0 | 0 | 9,388 | 0 | 535 | |||||||||
Dividends on preferred stock | (29) | (29) | 0 | 0 | 0 | 0 | (29) | 0 | 0 | |||||||||
Dividends on common stock | (1,083) | (1,083) | 0 | 0 | 0 | 0 | (1,083) | 0 | 0 | |||||||||
Other comprehensive income (loss) | (5,830) | (5,725) | 0 | 0 | 0 | 0 | 0 | (5,725) | (105) | |||||||||
Net increase due to divestitures and acquisitions | 1,713 | (629) | 0 | 0 | 0 | 470 | 0 | (1,099) | 2,342 | |||||||||
Contributions from noncontrolling interests | 22 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22 | |||||||||
Distributions to noncontrolling interests | (682) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (682) | |||||||||
Other | 386 | 379 | 0 | 0 | 101 | 273 | 5 | 0 | 7 | |||||||||
Balance at Dec. 31, 2021 | $ 68,912 | $ 65,956 | $ 485 | $ 4,766 | $ (51,618) | $ 81,851 | $ 23,785 | $ 6,687 | $ 2,956 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 9,923 | $ (5,829) | $ 4,169 |
Income from discontinued operations | 0 | (4) | (48) |
Noncash revenues, expenses, gains and losses included in income (loss): | |||
Net gains on sales of securities available for sale and other assets | (2,099) | (1,179) | (862) |
Net (gain) loss on divestitures | (3,044) | 8,525 | 75 |
Losses on extinguishment of debt | 389 | 12 | 32 |
Unrealized gains in earnings - net | (1,889) | (735) | (1,306) |
Equity in loss from equity method investments, net of dividends or distributions | 3 | 246 | 260 |
Depreciation and other amortization | 4,633 | 4,120 | 5,006 |
Impairments of assets | 46 | 98 | 299 |
Changes in operating assets and liabilities: | |||
Insurance reserves | 5,127 | 461 | (4,590) |
Premiums and other receivables and payables - net | (655) | 2,586 | 437 |
Reinsurance assets, net | (1,241) | (693) | 217 |
Capitalization of deferred policy acquisition costs | (4,906) | (4,292) | (5,403) |
Current and deferred income taxes - net | 1,314 | (2,434) | 912 |
Other, net | (1,322) | 156 | (1,005) |
Total adjustments | (3,644) | 6,871 | (5,928) |
Net cash provided by (used in) operating activities | 6,279 | 1,038 | (1,807) |
Sales or distribution of: | |||
Available for sale securities | 26,098 | 23,103 | 22,145 |
Other securities | 975 | 2,533 | 7,918 |
Other invested assets | 6,258 | 3,896 | 4,185 |
Divestitures, net | 4,683 | 2,173 | 2 |
Maturities of fixed maturity securities available for sale | 34,765 | 27,620 | 25,488 |
Principal payments received on and sales of mortgage and other loans receivable | 8,267 | 7,805 | 5,826 |
Purchases of: | |||
Available for sale securities | (74,204) | (58,284) | (54,410) |
Other securities | (2,034) | (617) | (1,638) |
Other invested assets | (3,168) | (3,522) | (3,346) |
Mortgage and other loans receivable | (9,013) | (5,990) | (9,515) |
Net change in short-term investments | 5,088 | (4,925) | (3,633) |
Other, net | (995) | 6 | 1,503 |
Net cash used in investing activities | (3,280) | (6,202) | (5,475) |
Proceeds from (payments for) | |||
Policyholder contract deposits | 25,424 | 22,385 | 25,453 |
Policyholder contract withdrawals | (22,481) | (17,854) | (19,823) |
Issuance of preferred stock, net of issuance costs | 0 | 0 | 485 |
Purchase of common stock | (2,592) | (500) | 0 |
Dividends paid on preferred stock | (29) | (29) | (22) |
Dividends paid on common stock | (1,083) | (1,103) | (1,114) |
Other, net | 1,222 | 541 | 1,600 |
Net cash provided by (used in) financing activities | (3,735) | 5,058 | 7,258 |
Effect of exchange rate changes on cash and restricted cash | (67) | 49 | 16 |
Net increase in cash and restricted cash | (803) | (57) | (8) |
Cash and restricted cash at beginning of year | 3,230 | 3,287 | 3,358 |
Cash and restricted cash at end of year | 2,427 | 3,230 | 3,287 |
American International Group, Inc. | |||
Proceeds from (payments for) | |||
Issuance of debt | 107 | 4,196 | 734 |
Repayments of debt | (4,147) | (1,923) | (1,504) |
Debt of consolidated investments | |||
Proceeds from (payments for) | |||
Issuance of debt | 4,338 | 2,128 | 3,147 |
Repayments of debt | $ (4,494) | $ (2,783) | $ (1,698) |
Supplementary Disclosure of Con
Supplementary Disclosure of Consolidated Cash Flow Information - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | |||||
Cash | $ 2,198 | [1] | $ 2,827 | [1] | $ 2,856 |
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows | 2,427 | 3,230 | 3,287 | ||
Cash paid during the period for: | |||||
Interest | 1,348 | 1,147 | 1,326 | ||
Taxes | 862 | 975 | 252 | ||
Non-cash investing activities: | |||||
Fixed maturity securities available for sale received in connection with pension risk transfer transactions | 2,284 | 1,140 | 1,072 | ||
Fixed maturity securities received in connection with reinsurance transactions | 161 | 362 | 0 | ||
Fixed maturity securities transferred in connection with reinsurance transactions | (837) | (266) | 0 | ||
Non-cash financing activities: | |||||
Interest credited to policyholder contract deposits included in financing activities | 3,586 | 3,734 | 3,792 | ||
Fee income debited to policyholder contract deposits included in financing activities | (1,690) | (1,710) | (1,733) | ||
Change in cash of held for sale assets | 0 | 0 | (63) | ||
Other assets | |||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | |||||
Restricted cash | 32 | 223 | 243 | ||
Short-term investments | |||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | |||||
Restricted cash | $ 197 | $ 180 | $ 188 | ||
[1] | See Note 9 for details of balances associated with variable interest entities. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. Basis of Presentation American International Group, Inc. (AIG) is a leading global insurance organization serving customers in approximately 70 countries and jurisdictions. AIG companies serve commercial and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG Common Stock, par value $ 2.50 per share (AIG Common Stock), is listed on the New York Stock Exchange (NYSE: AIG). Unless the context indicates otherwise, the terms “AIG,” “we,” “us” or “our” mean American International Group, Inc. and its consolidated subsidiaries and the term “AIG Parent” means American International Group, Inc. and not any of its consolidated subsidiaries. The consolidated financial statements include the accounts of AIG Parent, our controlled subsidiaries (generally through a greater than 50 percent ownership of voting rights and voting interests), and variable interest entities (VIEs) of which we are the primary beneficiary. Equity investments in entities that we do not consolidate, including corporate entities in which we have significant influence and partnership and partnership-like entities in which we have more than minor influence over the operating and financial policies, are accounted for under the equity method unless we have elected the fair value option. Certain of our foreign subsidiaries included in the Consolidated Financial Statements report on the basis of a fiscal year ending November 30. The effect on our consolidated financial condition and results of operations of all material events occurring at these subsidiaries through the date of each of the periods presented in these Consolidated Financial Statements has been considered for adjustment and/or disclosure. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). All material intercompany accounts and transactions have been eliminated. Sales/disposals of ASSETS AND Businesses Separation of Life and Retirement Business and Relationship with Blackstone Inc. On October 26, 2020, AIG announced its intention to separate its Life and Retirement business from AIG. On November 2, 2021, AIG and Blackstone Inc. (Blackstone) completed the acquisition by Blackstone of a 9.9 percent equity stake in SAFG Retirement Services, Inc. (SAFG), which is the holding company for AIG’s Life and Retirement business, for $ 2.2 billion in an all cash transaction, subject to adjustment if the final pro forma adjusted book value is greater or lesser than the target pro forma adjusted book value. This resulted in a $ 629 million decrease to AIG’s shareholders’ equity. As part of the separation, most of AIG’s investment operations were transferred to SAFG or its subsidiaries as of December 31, 2021, and AIG entered into a long-term asset management relationship with Blackstone to manage an initial $ 50 billion of Life and Retirement’s existing investment portfolio beginning in the fourth quarter of 2021, with that amount increasing by increments of $ 8.5 billion per year for five years beginning in the fourth quarter of 2022, for an aggregate of $ 92.5 billion. In addition, Blackstone designated one member of the Board of Directors of SAFG, which consists of 11 directors. Pursuant to the definitive agreement, Blackstone will be required to hold its ownership interest in SAFG following the completion of the separation of the Life and Retirement business, subject to exceptions permitting Blackstone to sell 25%, 67% and 75% of its shares after the first, second and third anniversaries, respectively, of the initial public offering of SAFG (the IPO), with the transfer restrictions terminating in full on the fifth anniversary of the IPO. In the event that the IPO of SAFG is not completed prior to November 2, 2023, Blackstone will have the right to require AIG to undertake the IPO, and in the event that the IPO has not been completed prior to November 2, 2024, Blackstone will have the right to exchange all or a portion of its ownership interest in SAFG for shares of AIG’s common stock on the terms set forth in the definitive agreement. On November 1, 2021, SAFG declared a dividend payable to AIG Parent in the amount of $ 8.3 billion. In connection with such dividend, SAFG issued a promissory note to AIG Parent in the amount of $ 8.3 billion, which will be required to be paid to AIG Parent prior to the IPO of SAFG. As of February 16, 2022, no amounts have been paid under the promissory note. While we currently believe the IPO is the next step in the separation of the Life and Retirement business from AIG, no assurance can be given regarding the form that future separation transactions may take or the specific terms or timing thereof, or that a separation will in fact occur. Any separation transaction will be subject to the satisfaction of various conditions and approvals, including approval by the AIG Board of Directors, receipt of insurance and other required regulatory approvals, and satisfaction of any applicable requirements of the Securities and Exchange Commission (SEC). For additional information on the sale of SAFG to Blackstone see Note 16. On December 15, 2021, AIG and Blackstone Real Estate Income Trust (BREIT), a long-term, perpetual capital vehicle affiliated with Blackstone, completed the acquisition by BREIT of AIG’s interests in a U.S. affordable housing portfolio for $ 4.9 billion, in an all cash transaction, resulting in a pre-tax gain of $ 3.0 billion. The historical results of the U.S. affordable housing portfolio were reported in our Life and Retirement operating segments. Sale of Certain AIG Life and Retirement Retail Mutual Funds Business On February 8, 2021, AIG announced the execution of a definitive agreement with Touchstone Investments (Touchstone), an indirect wholly-owned subsidiary of Western & Southern Financial Group, to sell certain assets of Life and Retirement’s Retail Mutual Funds business. This sale consisted of the reorganization of twelve of the retail mutual funds managed by SunAmerica Asset Management, LLC (SAAMCo), a Life and Retirement entity, into certain Touchstone funds and was subject to certain conditions, including approval of the fund reorganizations by the retail mutual fund boards of directors/trustees and fund shareholders. The transaction closed on July 16, 2021, at which time we received initial proceeds and the twelve retail mutual funds managed by SAAMCo, with $ 6.8 billion in assets, were reorganized into Touchstone funds. Additional consideration may be earned over a three-year period based on asset levels in certain reorganized funds. Six retail mutual funds managed by SAAMCo and not included in the transaction were liquidated. We will retain our fund management platform and capabilities dedicated to our variable annuity insurance products. Fortitude Holdings On June 2, 2020, we completed the sale of a majority of the interests in Fortitude Group Holdings, LLC (Fortitude Holdings) to Carlyle FRL, L.P. (Carlyle FRL), an investment fund advised by an affiliate of The Carlyle Group Inc. (Carlyle), and T&D United Capital Co., Ltd. (T&D), a subsidiary of T&D Holdings, Inc., under the terms of a membership interest purchase agreement entered into on November 25, 2019 (the Purchase Agreement) by and among AIG, Fortitude Holdings, Carlyle FRL, Carlyle, T&D and T&D Holdings, Inc. (the Majority Interest Fortitude Sale). AIG established Fortitude Reinsurance Company Ltd. (Fortitude Re), a wholly owned subsidiary of Fortitude Holdings, in 2018 in a series of reinsurance transactions related to AIG’s Run-Off operations. As of December 31, 2021, approximately $ 29.6 billion of reserves from AIG’s Life and Retirement Run-Off Lines and approximately $ 3.8 billion of reserves from AIG’s General Insurance Run-Off Lines, related to business written by multiple wholly-owned AIG subsidiaries, had been ceded to Fortitude Re under these reinsurance transactions. As of closing of the Majority Interest Fortitude Sale, these reinsurance transactions are no longer considered affiliated transactions and Fortitude Re is the reinsurer of the majority of AIG’s Run-Off operations. As these reinsurance transactions are structured as modified coinsurance and loss portfolio transfers with funds withheld, following the closing of the Majority Interest Fortitude Sale, AIG continues to reflect the invested assets, which consist mostly of available for sale securities, supporting Fortitude Re’s obligations, in AIG’s financial statements. AIG sold a 19.9 percent ownership interest in Fortitude Holdings to TC Group Cayman Investments Holdings, L.P. (TCG), an affiliate of Carlyle, in November 2018 (the 2018 Fortitude Sale). As a result of completion of the Majority Interest Fortitude Sale, Carlyle FRL purchased from AIG a 51.6 percent ownership interest in Fortitude Holdings and T&D purchased from AIG a 25 percent ownership interest in Fortitude Holdings; AIG retained a 3.5 percent ownership interest in Fortitude Holdings and one seat on its Board of Managers. The $ 2.2 billion of proceeds received by AIG at closing included (i) the $ 1.8 billion under the Majority Interest Fortitude Sale, subject to a post-closing purchase price adjustment pursuant to which AIG would pay Fortitude Re for certain adverse development in property casualty related reserves, based on an agreed methodology, that may occur through December 31, 2023, up to a maximum payment of $ 500 million; and (ii) a $ 383 million purchase price adjustment from Carlyle FRL and T&D, corresponding to their respective portions of a proposed $ 500 million non-pro rata distribution from Fortitude Holdings that was not received by AIG prior to the closing. Effective in the second quarter of 2021, AIG, Fortitude Holdings, Carlyle FRL, T&D and Carlyle amended the Purchase Agreement to finalize the post-closing purchase price adjustment for adverse reserve development. As a result of this amendment, during 2021, AIG recorded a $ 21 million benefit through Policyholder benefits and losses incurred and eliminated further net exposure to adverse development on the reserves ceded to Fortitude Re. AIG recorded a total after-tax reduction to total AIG shareholders’ equity of $ 4.3 billion related to the sale of the majority interest in and deconsolidation of Fortitude Holdings in the second quarter of 2020. The impact to equity was primarily due to a $ 6.7 billion after-tax loss partially offset by a $ 2.4 billion increase in accumulated other comprehensive income (AOCI) due to the release of unrealized appreciation (depreciation) of investments primarily related to future policy benefits. The $ 6.7 billion after-tax loss was comprised of (i) a $ 2.7 billion loss related to the write-off of prepaid insurance assets and deferred policy acquisition costs (DAC) upon deconsolidation of Fortitude Holdings and (ii) $ 4.0 billion related to the loss on the sale primarily as a result of increases in Fortitude Holdings’ equity principally related to mark to market movements from the December 31, 2018 date as of which Fortitude Holdings’ equity was calculated for purposes of the purchase price determination, through the June 2, 2020 closing date. In connection with the Majority Interest Fortitude Sale, AIG, Fortitude Holdings, and TCG agreed that, effective as of the closing, (i) AIG’s investment commitment targets under the 2018 Fortitude Sale (whereby AIG had agreed to invest certain amounts into various Carlyle strategies and to make certain minimum investment management fee payments by November 2021) were assumed by Fortitude Holdings and AIG was released therefrom, (ii) the purchase price adjustment that AIG had agreed to provide TCG in the 2018 Fortitude Sale (whereby AIG had agreed to reimburse TCG for adverse development in property casualty related reserves, based on an agreed methodology, that may occur through December 31, 2023, up to the value of TCG’s investment in Fortitude Holdings) has been terminated, and (iii) TCG remains obligated to pay AIG $ 115 million of deferred consideration upon settlement of the post-closing purchase price adjustment referred to above. This latter amount is composed of $ 95 million of deferred consideration contemplated as part of the 2018 Fortitude Sale, together with $ 19.9 million in respect of TCG’s 19.9 percent share of the unpaid portion of the $ 500 million non-pro rata dividend to be paid to AIG under the 2018 Fortitude Sale (TCG paid $ 79.6 million to AIG on May 26, 2020). In addition, the 2018 capital maintenance agreement between AIG and Fortitude Re and the letters of credit issued in support of Fortitude Re and subject to reimbursement by AIG in the event of a drawdown were terminated as of the closing of the Majority Interest Fortitude Sale. Upon closing of the Majority Interest Fortitude Sale, AIG entered into a transition services agreement with Fortitude Holdings for the provision of transition services for a period after closing, and letter of credit agreements with certain financial institutions, which issued letters of credit in support of certain General Insurance subsidiaries that have reinsurance agreements in place with Fortitude Re in the amount of $ 600 million. These letters of credit are subject to reimbursement by AIG in the event of a drawdown by these insurance subsidiaries. Following closing, in the second quarter of 2020, AIG contributed $ 700 million of the proceeds of the Majority Interest Fortitude Sale to certain of its General Insurance subsidiaries and $ 135 million of the proceeds of the Majority Interest Fortitude Sale to certain of its Life and Retirement subsidiaries. For additional information on the sale of Fortitude Holdings see Note 7. Blackboard At the end of March 2020, Blackboard U.S. Holdings, Inc. (Blackboard), AIG’s technology-driven subsidiary, was placed into run-off. As a result of this decision, during the year ended December 31, 2020, AIG recognized a pre-tax loss of $ 210 million, primarily consisting of asset impairment charges. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of: loss reserves; future policy benefit reserves for life and accident and health insurance contracts; liabilities for guaranteed benefit features of variable annuity, fixed annuity and fixed index annuity products; embedded derivative liabilities for fixed index annuity and life products; estimated gross profits to value deferred acquisition costs and unearned revenue for investment-oriented products; reinsurance assets, including the allowance for credit losses and disputes; goodwill impairment; allowance for credit losses on certain investments, primarily on loans and available for sale fixed maturity securities; legal contingencies; fair value measurements of certain financial assets and financial liabilities; and income taxes, in particular the recoverability of our deferred tax asset and establishment of provisions for uncertain tax positions. These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected. REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS In the third quarter of 2021, we identified misclassifications related to the balance sheet presentation of certain of our universal life and variable annuity products which resulted in an overstatement of Policyholder contract deposits and an understatement of Future policyholder benefits for life and accident and health insurance contracts. These balance sheet-only items had no impact to total liabilities reported, the Consolidated Statements of Income (Loss) or the Consolidated Statements of Cash Flows in any prior period. Accordingly, the Policyholder contract deposits, and Future policy benefits for life and accident and health insurance contracts included within the Consolidated Balance Sheets were decreased and increased, respectively, by $ 5.8 154.5 billion and $ 56.9 billion, respectively. We assessed the materiality of the misclassifications described above on prior period financial statements in accordance with SEC Staff Accounting Bulletin Number 99, Materiality, as codified in ASC 250-10, Accounting Changes and Error Corrections. We have determined that these misclassifications were not material to the financial statements of any prior annual or interim period. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. Summary of Significant Accounting Policies The following table identifies our significant accounting policies presented in other Notes to these Consolidated Financial Statements, with a reference to the Note where a detailed description can be found: Note 5. Investments Fixed maturity and equity securities Other invested assets Short-term investments Net investment income Net realized gains (losses) Allowance for credit losses/Other-than-temporary impairments Note 6. Lending Activities Mortgage and other loans receivable – net of allowance Note 7. Reinsurance Reinsurance assets – net of allowance Retroactive reinsurance Note 8. Deferred Policy Acquisition Costs Deferred policy acquisition costs Amortization of deferred policy acquisition costs Note 9. Variable Interest Entities Note 10. Derivatives and Hedge Accounting Derivative assets and liabilities, at fair value Note 11. Goodwill and Other Intangible Assets Note 12. Insurance Liabilities Liability for unpaid losses and loss adjustment expenses Discounting of reserves Future policy benefits Policyholder contract deposits Other policyholder funds Note 13. Variable Life and Annuity Contracts Note 14. Debt Long-term debt Debt of consolidated investment entities Note 15. Contingencies, Commitments and Guarantees Legal contingencies Note 17. Earnings Per Common Share Note 21. Income Taxes Other significant accounting policies Premiums for short-duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums written and earned on a pro rata basis over the term of the related coverage. In addition, certain miscellaneous income is included as premiums written and earned. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired terms of coverage. Reinsurance premiums are typically earned over the same period as the underlying policies or risks covered by the contract. As a result, the earnings pattern of a reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies throughout the year. Reinsurance premiums ceded under prospective reinsurance agreements are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsureds. Any subsequent differences that arise regarding such estimates are recorded in the periods in which they are determined. Premiums for long-duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued. Policy fees represent fees recognized from universal life and investment-type products consisting of policy charges for the cost of insurance, policy administration charges, surrender charges and amortization of unearned revenue reserves. Policy fees are recognized as revenues in the period in which they are assessed against policyholders, unless the fees are designed to compensate AIG for services to be provided in the future. Fees deferred as unearned revenue are amortized in relation to the incidence of expected gross profits to be realized over the estimated lives of the contracts, similar to DAC. Other income includes advisory fee income from the Life and Retirement broker dealer business. Cash represents cash on hand and demand deposits. Short-term investments Short-term investments include highly liquid securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. Securities included within short-term investments are stated at estimated fair value, while other investments included within short-term investments are stated at amortized cost, which approximates estimated fair value. Premiums and other receivables – net of allowance for credit losses and disputes include premium balances receivable, amounts due from agents and brokers and policyholders, receivables resulting from sales of securities that had not yet settled, cash collateral posted to derivative counterparties that is not eligible to be netted against derivative liabilities and other receivables. Deposit assets and liabilities: We have entered into certain insurance and reinsurance contracts, primarily in our General Insurance companies, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. When we receive premiums on such contracts, the premiums received, after deduction for certain related expenses, are recorded as deposits within Other liabilities in the Consolidated Balance Sheets. Net proceeds of these deposits are invested and generate Net investment income. When we pay premiums on such contracts, the premiums paid are recorded as deposits within Other assets in the Consolidated Balance Sheets. The deposit asset or liability is adjusted as amounts are paid, consistent with the underlying contracts. Other assets consist of deferred sales inducements (DSI), prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, restricted cash, derivative assets, accrued interest income, and assets classified as held-for-sale. The cost of buildings and furniture and equipment is depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and fixtures). Expenditures for maintenance and repairs are charged to income as incurred and expenditures for improvements are capitalized and depreciated. We periodically assess the carrying amount of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized using the straight-line method over a period generally not exceeding ten years. Separate accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment objectives and the assets are carried at fair value. The assets of each account are legally segregated and are not subject to claims that arise from any of our other businesses. The liabilities for these accounts are equal to the account assets. Separate accounts may also include deposits for funds held under stable value wrap funding agreements, although the majority of stable value wrap sales are measured based on the notional amount included in assets under management and do not include the receipt of funds. For additional information on separate accounts see Note 13 herein . Other liabilities consist of other funds on deposit, other payables, securities sold under agreements to repurchase, securities sold but not yet purchased, liabilities resulting from purchases of securities that had not yet settled, derivative liabilities, cash collateral received from derivative counterparties that contractually cannot be netted against derivative assets, allowance for credit losses in relation to off-balance sheet commitments, deferred gains on retroactive reinsurance agreements and liabilities classified as held-for-sale. Foreign currency: Financial statement accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in Total AIG shareholders’ equity. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a consolidated entity are remeasured into that entity’s functional currency resulting in exchange gains or losses recorded in income. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income. Non-redeemable noncontrolling interest is the portion of equity (net assets) and net income (loss) in a subsidiary not attributable, directly or indirectly, to AIG. Accounting Standards Adopted During 2021 Income Tax On December 18, 2019, the FASB issued an accounting standard that simplifies the accounting for income taxes by eliminating certain exceptions to the incremental approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The amendments also simplified other areas including the accounting for franchise taxes and enacted tax laws or rates and clarified the accounting for transactions that result in the step-up in the tax basis of goodwill. We adopted the standard on its effective date of January 1, 2021. The impact of adoption was not material to our consolidated financial condition, results of operations and cash flows. Clarification of Accounting for Certain Equity Method Investments On January 16, 2020, the FASB issued an accounting standard to clarify how a previously issued standard regarding a company’s ability to measure the fair value of certain equity securities without a readily determinable fair value should interact with equity method investments standards. The previously issued standard provides that such equity securities could be measured at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs (measurement alternative). The new standard clarifies that a company should consider observable transactions that require the company to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with the equity method immediately before applying or upon discontinuing the equity method. The standard further clarifies that, when determining the accounting for certain forward contracts and purchased options a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. We adopted the standard prospectively on its effective date of January 1, 2021. The adoption of the standard did not have a material impact on our consolidated financial condition, results of operations or cash flows. Reference Rate Reform On March 12, 2020, the FASB issued an accounting standard that provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The standard allows us to account for certain contract modifications that result from the discontinuation of the London Inter-Bank Offered Rate (LIBOR) or another reference rate as a continuation of the existing contract without additional analysis. This standard may be elected and applied prospectively over time from March 12, 2020 through December 31, 2022 as reference rate reform activities occur. Where permitted by the guidance, we have accounted for contract modifications stemming from the discontinuation of LIBOR or another reference rate as a continuation of the existing contract. As part of our implementation efforts, we have and will continue to assess our operational readiness and current and alternative reference rates’ merits, limitations, risks and suitability for our investment and insurance processes. The adoption of the standard has not had, and is not expected to have, a material impact on our reported consolidated financial condition, results of operations, cash flows and required disclosures. Future Application of Accounting Standards Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued an accounting standard update with the objective of making targeted improvements to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The Company will adopt the standard on January 1, 2023. We continue to evaluate and expect the adoption of this standard will impact our financial condition, results of operations, statement of cash flows and disclosures, as well as systems, processes and controls. The Company will adopt the standard using the modified retrospective transition method relating to liabilities for traditional and limited payment contracts and deferred policy acquisition costs associated therewith. The Company will adopt the standard in relation to market risk benefits (MRBs) on a retrospective basis. Based upon this transition method, the Company currently estimates that the January 1, 2021 transition date (Transition Date) impact from adoption is likely to result in a decrease in AIG’s equity between approximately $ 1.0 billion and $ 3.0 billion in AIG’s Life and Retirement business. The most significant drivers of the transition adjustment are expected to be (1) changes related to market risk benefits in our Individual Retirement and Group Retirement segments, including the impact of non-performance adjustments (2) changes to the discount rate which will most significantly impact our Life Insurance and Institutional Markets segments and (3) the removal of balances recorded in AOCI related to changes in unrealized appreciation (depreciation) on investments. Market risk benefits: The standard requires the measurement of all MRBs associated with deposit (or account balance) contracts at fair value at each reporting period. Changes in fair value compared to prior periods will be recorded and presented separately within the income statement, with the exception of instrument-specific credit risk changes (non-performance adjustments), which will be recognized in other comprehensive income. MRBs will impact both retained earnings and AOCI upon transition. As MRBs are required to be accounted for at fair value, the quarterly valuation of these items will result in variability and volatility in the Company’s results following adoption. Discount rate assumption: The standard requires the discount rate assumption for the liability for future policy benefits to be updated at the end of each reporting period using an upper-medium grade (low credit risk) fixed income instrument yield that maximizes the use of observable market inputs. Upon transition, the Company currently estimates an adjustment to AOCI due to the fact that the market upper-medium grade (low credit risk) interest rates as of the Transition Date differ from reserve interest accretion rates. Lower interest rates result in a higher liability for future policy benefits, and are anticipated to more significantly impact our Life Insurance and Institutional Markets segments. Following adoption, the impact of changes to discount rates will be recognized through other comprehensive income. Changes resulting from unlocking the discount rate each reporting period will primarily impact term life insurance and other traditional life insurance products, as well as pension risk transfer and structured settlement products. Removal of balances related to changes in unrealized appreciation (depreciation) on investments: Under the standard, the majority of balances recorded in AOCI related to changes in unrealized appreciation (depreciation) on investments will be eliminated. In addition to the above, the standard also: Requires the review and if necessary, update of future policy benefit assumptions at least annually for traditional and limited pay long duration contracts, with the recognition and separate presentation of any resulting re-measurement gain or loss (except for discount rate changes as noted above) in the income statement. Simplifies the amortization of DAC to a constant level basis over the expected term of the related contracts with adjustments for unexpected terminations, but no longer requires an impairment test. Increased disclosures of disaggregated roll-forwards of several balances, including: liabilities for future policy benefits, deferred acquisition costs, account balances, market risk benefits, separate account liabilities and information about significant inputs, judgments and methods used in measurement and changes thereto and impact of those changes. We expect that the accounting for Fortitude Re will continue to remain largely unchanged. With respect to Fortitude Re, the reinsurance assets, including the discount rates, will continue to be calculated using the same methodology and assumptions as the direct policies. Accounting for modco remains unchanged. The Company has created a governance framework and a plan to support implementation of the updated standard. As part of its implementation plan, the Company has also advanced the modernization of its actuarial technology platform to enhance its modeling, data management, experience study and analytical capabilities, increase the end-to-end automation of key reporting and analytical processes and optimize its control framework. The Company has designed and begun implementation and testing of internal controls related to the new processes created as part of implementing the updated standard and will continue to refine these internal controls until the formal implementation in the first quarter of 2023. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 3. Segment Information We report our results of operations consistent with the manner in which our chief operating decision makers review the business to assess performance and allocate resources, as follows: General Insurance General Insurance business is presented as two operating segments: North America – consists of insurance businesses in the United States, Canada and Bermuda, and our global reinsurance business, AIG Re. This also includes the results of Western World Insurance Group, Inc. and Glatfelter Insurance Group. International – consists of regional insurance businesses in Japan, the United Kingdom, Europe, Middle East and Africa (EMEA region), Asia Pacific, Latin America and Caribbean, and China. International also includes the results of Talbot Holdings, Ltd. as well as AIG’s Global Specialty business. North America and International operating segments consist of the following products: – Commercial Lines – consists of Liability, Financial Lines, Property, Global Specialty and Crop Risk Services. – Personal Insurance – consists of Personal Lines and Accident & Health. Life and Retirement Life and Retirement business is presented as four operating segments: Individual Retirement – consists of fixed annuities, fixed index annuities, variable annuities and retail mutual funds. Group Retirement – consists of record-keeping, plan administrative and compliance services, financial planning and advisory solutions offered to employer-defined contribution plan participants, along with proprietary and non-proprietary annuities and advisory and brokerage products offered outside of plans. Life Insurance – primary products in the U.S. include term life and universal life insurance. International operations primarily include distribution of life and health products in the UK and Ireland. Institutional Markets – consists of stable value wrap products, structured settlement and pension risk transfer annuities, corporate- and bank-owned life insurance, high net worth products and guaranteed investment contracts (GICs). For additional information on the Life and Retirement business, see Note 1. Other Operations Other Operations primarily consists of income from assets held by AIG Parent and other corporate subsidiaries, deferred tax assets related to tax attributes, corporate expenses and intercompany eliminations, our institutional asset management business and results of our consolidated investment entities, General Insurance portfolios in run-off as well as the historical results of our legacy insurance lines ceded to Fortitude Re. The accounting policies of the segments are the same as those described in Note 2. We evaluate segment performance based on adjusted revenues and adjusted pre-tax income (loss). Adjusted revenues and adjusted pre-tax income (loss) are derived by excluding certain items from total revenues and net income (loss) attributable to AIG, respectively. These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and measures that we believe to be common to the industry. Legal entities are attributed to each segment based upon the predominance of activity in that legal entity. For the items excluded from adjusted revenues and adjusted pre-tax income (loss) see the table below. The following table presents AIG’s continuing operations by operating segment: Adjusted Net Pre-tax Adjusted Investment Interest Amortization Income (in millions) Revenues Income Expense of DAC (Loss) 2021 General Insurance North America $ 10,989 $ - $ 1,333 $ ( 47) (a) International 14,068 - 2,197 1,102 (a) Net investment income 3,304 $ 3,304 - - 3,304 Total General Insurance 28,361 3,304 - 3,530 4,359 Life and Retirement Individual Retirement 6,083 4,338 61 736 1,939 Group Retirement 3,291 2,410 35 61 1,284 Life Insurance 5,112 1,619 25 170 106 Institutional Markets 5,108 1,154 9 6 582 Total Life and Retirement 19,594 9,521 130 973 3,911 Other Operations Other Operations before consolidation and eliminations 1,338 1,112 1,220 37 ( 1,418) AIG consolidation and eliminations ( 991) ( 996) ( 65) - ( 932) Total Other Operations 347 116 1,155 37 ( 2,350) Total 48,302 12,941 1,285 4,540 5,920 Reconciling items to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 60 60 - - 61 Changes in benefit reserves and DAC, VOBA and DSI related to net realized gains (losses) - - - 33 ( 52) Changes in the fair value of equity securities ( 237) ( 237) - - ( 237) Other income (expense) - net ( 24) 33 33 - - Loss on extinguishment of debt - - - - ( 389) Net investment income on Fortitude Re funds withheld assets 1,971 1,971 - - 1,971 Net realized gains (losses) on Fortitude Re funds withheld assets 1,003 - - - 1,003 Net realized gains (losses) on Fortitude Re funds withheld embedded derivative ( 603) - - - ( 603) Net realized gains (losses) (b) 1,585 ( 156) ( 13) - 1,623 Net gain on divestitures - - - - 3,044 Non-operating litigation reserves and settlements - - - - ( 3) Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - 186 Net loss reserve discount benefit - - - - 193 Pension expense related to lump sum payments to former employees - - - - ( 34) Integration and transaction costs associated with acquiring or divesting businesses - - - - ( 83) Restructuring and other costs - - - - ( 433) Non-recurring costs related to regulatory or accounting changes - - - - ( 68) Revenues and pre-tax income $ 52,057 $ 14,612 $ 1,305 $ 4,573 $ 12,099 2020 General Insurance North America $ 10,302 $ - $ 1,365 $ ( 1,301) (a) International 13,360 - 2,173 277 (a) Net investment income 2,925 $ 2,925 - - 2,925 Total General Insurance 26,587 2,925 - 3,538 1,901 Life and Retirement Individual Retirement 5,714 4,131 72 590 1,938 Group Retirement 2,970 2,236 42 7 1,013 Life Insurance 4,877 1,526 30 30 142 Institutional Markets 3,714 988 11 5 438 Total Life and Retirement 17,275 8,881 155 632 3,531 Other Operations Other Operations before consolidation and eliminations 1,385 1,087 1,306 50 ( 1,963) AIG consolidation and eliminations ( 562) ( 572) ( 70) - ( 466) Total Other Operations 823 515 1,236 50 ( 2,429) Total 44,685 12,321 1,391 4,220 3,003 Reconciling items to pre-tax income (loss): Changes in fair value of securities used to hedge guaranteed living benefits 56 56 - - 41 Changes in benefit reserves and DAC, VOBA and DSI related to net realized gains (losses) - - - ( 9) 12 Changes in the fair value of equity securities 200 200 - - 200 Other income (expense) - net 49 99 99 - - Loss on extinguishment of debt - - - - ( 12) Net investment income on Fortitude Re funds withheld assets 1,053 1,053 - - 1,053 Net realized gains on Fortitude Re funds withheld assets 463 - - - 463 Net realized losses on Fortitude Re funds withheld embedded derivative ( 2,645) - - - ( 2,645) Net realized losses (b) ( 148) ( 98) ( 33) - ( 97) Net loss on divestitures - - - - ( 8,525) Non-operating litigation reserves and settlements 23 - - - 21 Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - 221 Net loss reserve discount charge - - - - ( 516) Integration and transaction costs associated with acquiring or divesting businesses - - - - ( 12) Restructuring and other costs - - - - ( 435) Non-recurring costs related to regulatory or accounting changes - - - - ( 65) Revenues and pre-tax income (loss) $ 43,736 $ 13,631 $ 1,457 $ 4,211 $ ( 7,293) 2019 General Insurance North America $ 12,136 $ - $ 1,923 $ ( 365) (a) International 14,302 - 2,559 454 (a) Net investment income 3,444 $ 3,444 - - 3,444 Total General Insurance 29,882 3,444 - 4,482 3,533 Life and Retirement Individual Retirement 5,643 4,122 77 449 1,977 Group Retirement 2,947 2,240 44 81 937 Life Insurance 4,825 1,483 30 137 331 Institutional Markets 2,941 888 11 5 308 Total Life and Retirement 16,356 8,733 162 672 3,553 Other Operations Other Operations before consolidation and eliminations 3,060 2,598 1,260 64 ( 1,312) AIG consolidation and eliminations ( 388) ( 385) ( 55) - ( 304) Total Other Operations 2,672 2,213 1,205 64 ( 1,616) Total 48,910 14,390 1,367 5,218 5,470 Reconciling items to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 228 228 - - 194 Changes in benefit reserves and DAC, VOBA and DSI related to net realized gains (losses) - - - ( 54) 56 Changes in the fair value of equity securities 158 158 - - 158 Other income (expense) - net 46 85 87 - - Loss on extinguishment of debt - - - - ( 32) Net realized gains (losses) (b) 395 ( 242) ( 37) - 456 Net loss on divestitures - - - - ( 75) Non-operating litigation reserves and settlements 9 - - - 2 Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - 267 Net loss reserve discount charge - - - - ( 955) Integration and transaction costs associated with acquiring or divesting businesses - - - - ( 24) Restructuring and other costs - - - - ( 218) Non-recurring costs related to regulatory or accounting changes - - - - ( 12) Revenues and pre-tax income $ 49,746 $ 14,619 $ 1,417 $ 5,164 $ 5,287 (a) General Insurance North America’s and General Insurance International’s Adjusted pre-tax income does not include Net investment income as the investment portfolio results are managed at the General Insurance level. Net investment income is shown separately as a component of General Insurance’s total Adjusted pre-tax income results. (b) Includes all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets). The following table presents AIG’s year-end identifiable assets and capital expenditures by segment: Year-End Identifiable Assets Capital Expenditures (in millions) 2021 2020 * 2021 2020 General Insurance $ 159,000 $ 155,751 $ 76 $ 156 Life and Retirement 406,104 397,749 62 107 Other Operations 31,008 32,981 205 90 Total Assets $ 596,112 $ 586,481 $ 343 $ 353 * Certain reclassifications have been made to the prior year amounts for consistency with the current year presentation. The following table presents AIG’s consolidated total revenues and real estate and other fixed assets, net of accumulated depreciation, by major geographic area: Real Estate and Other Fixed Assets, Total Revenues * Net of Accumulated Depreciation (in millions) 2021 2020 2019 2021 2020 2019 North America $ 37,224 $ 30,204 $ 36,930 $ 1,212 $ 1,230 $ 1,333 International 14,833 13,532 12,816 500 610 620 Consolidated $ 52,057 $ 43,736 $ 49,746 $ 1,712 $ 1,840 $ 1,953 * Revenues are generally reported according to the geographic location of the segment. International revenues consists of revenues from our General Insurance International operating segment. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 4. Fair Value Measurements Fair Value Measurements on a Recurring Basis We carry certain of our financial instruments at fair value. We define the fair value of a financial instrument as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are responsible for the determination of the value of the investments carried at fair value and the supporting methodologies and assumptions. The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. We maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions. Fair Value Hierarchy Assets and liabilities recorded at fair value in the Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs: Level 1: Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments. Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The following is a description of the valuation methodologies used for instruments carried at fair value. These methodologies are applied to assets and liabilities across the levels discussed above, and it is the observability of the inputs used that determines the appropriate level in the fair value hierarchy for the respective asset or liability. Valuation Methodologies of Financial Instruments Measured at Fair Value Incorporation of Credit Risk in Fair Value Measurements Our Own Credit Risk. Fair value measurements for certain liabilities incorporate our own credit risk by determining the explicit cost for each counterparty to protect against its net credit exposure to us at the balance sheet date by reference to observable AIG credit default swaps (CDS) or cash bond spreads. We calculate the effect of credit spread changes using discounted cash flow techniques that incorporate current market interest rates. A derivative counterparty’s net credit exposure to us is determined based on master netting agreements, when applicable, which take into consideration all derivative positions with us, as well as collateral we post with the counterparty at the balance sheet date. For a description of how we incorporate our own credit risk in the valuation of embedded derivatives related to certain annuity and life insurance products see – Embedded Derivatives within Policyholder Contract Deposits below. Counterparty Credit Risk. Fair value measurements for freestanding derivatives incorporate counterparty credit by determining the explicit cost for us to protect against our net credit exposure to each counterparty at the balance sheet date by reference to observable counterparty CDS spreads, when available. When not available, other directly or indirectly observable credit spreads will be used to derive the best estimates of the counterparty spreads. Our net credit exposure to a counterparty is determined based on master netting agreements, which take into consideration all derivative positions with the counterparty, as well as collateral posted by the counterparty at the balance sheet date. Fair values for fixed maturity securities based on observable market prices for identical or similar instruments implicitly incorporate counterparty credit risk. Fair values for fixed maturity securities based on internal models incorporate counterparty credit risk by using discount rates that take into consideration cash issuance spreads for similar instruments or other observable information. For fair values measured based on internal models, the cost of credit protection is determined under a discounted present value approach considering the market levels for single name CDS spreads for each specific counterparty, the mid-market value of the net exposure (reflecting the amount of protection required) and the weighted average life of the net exposure. CDS spreads are provided to us by an independent third party. We utilize an interest rate based on the benchmark LIBOR curve to derive our discount rates. While this approach does not explicitly consider all potential future behavior of the derivative transactions or potential future changes in valuation inputs, we believe this approach provides a reasonable estimate of the fair value of the assets and liabilities, including consideration of the impact of non-performance risk. Fixed Maturity Securities Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure fixed maturity securities at fair value. Market price data is generally obtained from dealer markets. We employ independent third-party valuation service providers to gather, analyze, and interpret market information to derive fair value estimates for individual investments, based upon market-accepted methodologies and assumptions. The methodologies used by these independent third-party valuation service providers are reviewed and understood by management, through periodic discussion with and information provided by the independent third-party valuation service providers. In addition, as discussed further below, control processes are applied to the fair values received from independent third-party valuation service providers to ensure the accuracy of these values. Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of market-accepted valuation methodologies, which may utilize matrix pricing, financial models, accompanying model inputs and various assumptions, provide a single fair value measurement for individual securities. The inputs used by the valuation service providers include, but are not limited to, market prices from completed transactions for identical securities and transactions for comparable securities, benchmark yields, interest rate yield curves, credit spreads, prepayment rates, default rates, recovery assumptions, currency rates, quoted prices for similar securities and other market-observable information, as applicable. If fair value is determined using financial models, these models generally take into account, among other things, market observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We have control processes designed to ensure that the fair values received from independent third-party valuation service providers are accurately recorded, that their data inputs and valuation techniques are appropriate and consistently applied and that the assumptions used appear reasonable and consistent with the objective of determining fair value. We assess the reasonableness of individual security values received from independent third-party valuation service providers through various analytical techniques, and have procedures to escalate related questions internally and to the independent third-party valuation service providers for resolution. To assess the degree of pricing consensus among various valuation service providers for specific asset types, we conduct comparisons of prices received from available sources. We use these comparisons to establish a hierarchy for the fair values received from independent third-party valuation service providers to be used for particular security classes. We also validate prices for selected securities through reviews by members of management who have relevant expertise and who are independent of those charged with executing investing transactions. When our independent third-party valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a price quote, which is generally non-binding, or by employing market accepted valuation models. Broker prices may be based on an income approach, which converts expected future cash flows to a single present value amount, with specific consideration of inputs relevant to particular security types. For structured securities, such inputs may include ratings, collateral types, geographic concentrations, underlying loan vintages, loan delinquencies and defaults, loss severity assumptions, prepayments, and weighted average coupons and maturities. When the volume or level of market activity for a security is limited, certain inputs used to determine fair value may not be observable in the market. Broker prices may also be based on a market approach that considers recent transactions involving identical or similar securities. Fair values provided by brokers are subject to similar control processes to those noted above for fair values from independent third-party valuation service providers, including management reviews. For those corporate debt instruments (for example, private placements) that are not traded in active markets or that are subject to transfer restrictions, valuations reflect illiquidity and non-transferability, based on available market evidence. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on credit spreads, yields or price levels of comparable securities, adjusted for illiquidity and structure. Fair values determined internally are also subject to management review to ensure that valuation models and related inputs are reasonable. The methodology above is relevant for all fixed maturity securities including residential mortgage backed securities (RMBS), commercial mortgage backed securities (CMBS), collateralized debt obligations (CDO), other asset-backed securities (ABS) and fixed maturity securities issued by government sponsored entities and corporate entities. Equity Securities Traded in Active Markets Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure equity securities at fair value. Market price data is generally obtained from exchange or dealer markets. Mortgage and Other Loans Receivable We estimate the fair value of mortgage and other loans receivable that are measured at fair value by using dealer quotations, discounted cash flow analyses and/or internal valuation models. The determination of fair value considers inputs such as interest rate, maturity, the borrower’s creditworthiness, collateral, subordination, guarantees, past-due status, yield curves, credit curves, prepayment rates, market pricing for comparable loans and other relevant factors. Other Invested Assets We initially estimate the fair value of investments in certain hedge funds, private equity funds and other investment partnerships by reference to the transaction price. Subsequently, we generally obtain the fair value of these investments from net asset value information provided by the general partner or manager of the investments, the financial statements of which are generally audited annually. We consider observable market data and perform certain control procedures to validate the appropriateness of using the net asset value as a fair value measurement. The fair values of other investments carried at fair value, such as direct private equity holdings, are initially determined based on transaction price and are subsequently estimated based on available evidence such as market transactions in similar instruments, other financing transactions of the issuer and other available financial information for the issuer, with adjustments made to reflect illiquidity as appropriate. Short-term Investments For short-term investments that are measured at amortized cost, the carrying amounts of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk. Securities purchased under agreements to resell (reverse repurchase agreements) are generally treated as collateralized receivables. We report certain receivables arising from securities purchased under agreements to resell as Short-term investments in the Consolidated Balance Sheets. When these receivables are measured at fair value, we use market-observable interest rates to determine fair value. Separate Account Assets Separate account assets are composed primarily of registered and unregistered open-end mutual funds that generally trade daily and are measured at fair value in the manner discussed above for equity securities traded in active markets. Freestanding Derivatives Derivative assets and liabilities can be exchange-traded or traded over-the-counter (OTC). We generally value exchange-traded derivatives such as futures and options using quoted prices in active markets for identical derivatives at the balance sheet date. OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in the instrument, as well as the availability of pricing information in the market. We generally use similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment. For certain OTC derivatives that trade in less liquid markets, where we generally do not have corroborating market evidence to support significant model inputs and cannot verify the model to market transactions, the transaction price may provide the best estimate of fair value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so the model value at inception equals the transaction price. We will update valuation inputs in these models only when corroborated by evidence such as similar market transactions, independent third-party valuation service providers and/or broker or dealer quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. We value our super senior credit default swap portfolio using prices obtained from vendors and/or counterparties. The valuation of the super senior credit derivatives is complex because of the limited availability of market observable information due to the lack of trading and price transparency in certain structured finance markets. Our valuation methodologies for the super senior CDS portfolio have evolved over time in response to market conditions and the availability of market observable information. We have sought to calibrate the methodologies to available market information and to review the assumptions of the methodologies on a regular basis. Embedded Derivatives within Policyholder Contract Deposits Certain variable annuity and fixed index annuity and life contracts contain embedded derivatives that we bifurcate from the host contracts and account for separately at fair value, with changes in fair value recognized in earnings. These embedded derivatives are classified within Policyholder contract deposits. We have concluded these contracts contain either (i) a written option that guarantees a minimum accumulation value at maturity, (ii) a written option that guarantees annual withdrawals regardless of underlying market performance for a specific period or for life, or (iii) fixed index written options that meet the criteria of derivatives and must be bifurcated. The fair value of embedded derivatives contained in certain variable annuity and fixed index annuity and life contracts is measured based on policyholder behavior and capital market assumptions related to projected cash flows over the expected lives of the contracts. These discounted cash flow projections primarily include benefits and related fees assessed, when applicable. In some instances, the projected cash flows from fees may exceed projected cash flows related to benefit payments and therefore, at a point in time, the carrying value of the embedded derivative may be in a net asset position. The projected cash flows incorporate best estimate assumptions for policyholder behavior (including mortality, lapses, withdrawals and benefit utilization), along with an explicit risk margin to reflect a market participant’s estimates of projected cash flows and policyholder behavior. Estimates of future policyholder behavior assumptions are subjective and based primarily on our historical experience. Because of the dynamic and complex nature of the projected cash flows with respect to embedded derivatives in our variable and certain fixed index annuity contracts, risk neutral valuations are used, which are calibrated to observable interest rate and equity option prices. Estimating the underlying cash flows for these products involves judgments regarding the capital market assumptions related to expected market rates of return, market volatility, credit spreads, correlations of certain market variables, fund performance and discount rates. Additionally, estimating the underlying cash flows for these products also involves judgments regarding policyholder behavior. The portion of fees attributable to the fair value of expected benefit payments are included within the fair value measurement of these embedded derivatives, and related fees are classified in net realized gain/loss as earned, consistent with other changes in the fair value of these embedded policy derivatives. Any portion of the fees not attributed to the embedded derivatives are excluded from the fair value measurement and classified in policy fees as earned. With respect to embedded derivatives in our fixed index annuity and life contracts, option pricing models are used to estimate fair value, taking into account the capital market assumptions for future equity index growth rates, volatility of the equity index, future interest rates, and our ability to adjust the participation rate and the cap on fixed index credited rates in light of market conditions and policyholder behavior assumptions. Projected cash flows are discounted using the interest rate swap curve (swap curve), which is commonly viewed as being consistent with the credit spreads for highly-rated financial institutions (S&P AA-rated or above). A swap curve shows the fixed-rate leg of a non-complex swap against the floating rate (for example, LIBOR) leg of a related tenor. We also incorporate our own risk of non-performance in the valuation of the embedded derivatives associated with variable annuity and fixed index annuity and life contracts. The non-performance risk adjustment (NPA) reflects a market participant’s view of our claims-paying ability by incorporating an additional spread to the swap curve used to discount projected benefit cash flows in the valuation of these embedded derivatives. The non-performance risk adjustment is calculated by constructing forward rates based on a weighted average of observable corporate credit indices to approximate the claims-paying ability rating of our Life and Retirement companies. Fortitude Re funds withheld payable The reinsurance transactions between AIG and Fortitude Re were structured as modified coinsurance (modco) and loss portfolio transfer arrangements with funds withheld (funds withheld). As a result of the deconsolidation resulting from the Majority Interest Fortitude Sale, AIG has established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing reserves for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative and changes in fair value of the embedded derivative related to the funds withheld payable are recognized in earnings through realized gains (losses). This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements. Long-Term Debt The fair value of non-structured liabilities is generally determined by using market prices from exchange or dealer markets, when available, or discounting expected cash flows using the appropriate discount rate for the applicable maturity. We determine the fair value of structured liabilities and hybrid financial instruments (where performance is linked to structured interest rates, inflation or currency risks) using the appropriate derivative valuation methodology (described above) given the nature of the embedded risk profile. In addition, adjustments are made to the valuations of both non-structured and structured liabilities to reflect our own creditworthiness based on the methodology described under the caption “Incorporation of Credit Risk in Fair Value Measurements – Our Own Credit Risk” above. Borrowings under obligations of guaranteed investment agreements (GIAs), which are guaranteed by us, are recorded at fair value using discounted cash flow calculations based on interest rates currently being offered for similar contracts and our current market observable implicit credit spread rates with maturities consistent with those remaining for the contracts being valued. Obligations may be called at various times prior to maturity at the option of the counterparty. Interest rates on these borrowings are primarily fixed, vary by maturity and range up to 7.15 percent. Other Liabilities Other liabilities measured at fair value include certain securities sold under agreements to repurchase and certain securities sold but not yet purchased. Liabilities arising from securities sold under agreements to repurchase are generally treated as collateralized borrowings. We estimate the fair value of liabilities arising under these agreements by using market-observable interest rates. This methodology considers such factors as the coupon rate, yield curves and other relevant factors. Fair values for securities sold but not yet purchased are based on current market prices. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used: December 31, 2021 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (a) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 2,553 $ 5,641 $ - $ - $ - $ 8,194 Obligations of states, municipalities and political subdivisions - 13,096 1,431 - - 14,527 Non-U.S. governments 9 16,314 7 - - 16,330 Corporate debt - 172,967 2,641 - - 175,608 RMBS - 16,909 10,378 - - 27,287 CMBS - 14,619 1,190 - - 15,809 CDO/ABS - 8,232 11,215 - - 19,447 Total bonds available for sale 2,562 247,778 26,862 - - 277,202 Other bond securities: U.S. government and government sponsored entities - 1,750 - - - 1,750 Obligations of states, municipalities and political subdivisions - 97 - - - 97 Non-U.S. governments - 76 - - - 76 Corporate debt - 916 134 - - 1,050 RMBS - 215 196 - - 411 CMBS - 280 35 - - 315 CDO/ABS - 247 2,332 - - 2,579 Total other bond securities - 3,581 2,697 - - 6,278 Equity securities 669 64 6 - - 739 Other invested assets (b) - 138 1,948 - - 2,086 Derivative assets (c) Interest rate contracts - 3,873 - - - 3,873 Foreign exchange contracts - 1,188 1 - - 1,189 Equity contracts 7 224 450 - - 681 Commodity contracts - 4 - - - 4 Credit contracts - - 1 - - 1 Other contracts - - 13 - - 13 Counterparty netting and cash collateral - - - ( 2,779) ( 2,139) ( 4,918) Total derivative assets 7 5,289 465 ( 2,779) ( 2,139) 843 Short-term investments 2,584 1,842 - - - 4,426 Other assets - - 114 - - 114 Separate account assets 105,221 3,890 - - - 109,111 Total $ 111,043 $ 262,582 $ 32,092 $ ( 2,779) $ ( 2,139) $ 400,799 Liabilities: Policyholder contract deposits $ - $ 54 $ 9,682 $ - $ - $ 9,736 Derivative liabilities (c) Interest rate contracts 1 3,632 - - - 3,633 Foreign exchange contracts - 721 - - - 721 Equity contracts 1 46 6 - - 53 Credit contracts - 16 31 - - 47 Other contracts - - - - - - Counterparty netting and cash collateral - - - ( 2,779) ( 1,089) ( 3,868) Total derivative liabilities 2 4,415 37 ( 2,779) ( 1,089) 586 Fortitude Re funds withheld payable - - 5,922 - - 5,922 Other liabilities - - - - - - Long-term debt - 1,871 - - - 1,871 Total $ 2 $ 6,340 $ 15,641 $ ( 2,779) $ ( 1,089) $ 18,115 December 31, 2020 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (a) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 73 $ 4,053 $ - $ - $ - $ 4,126 Obligations of states, municipalities and political subdivisions - 14,019 2,105 - - 16,124 Non-U.S. governments 28 15,312 5 - - 15,345 Corporate debt - 166,949 2,349 - - 169,298 RMBS - 19,771 11,694 - - 31,465 CMBS - 15,211 922 - - 16,133 CDO/ABS - 9,191 9,814 - - 19,005 Total bonds available for sale 101 244,506 26,889 - - 271,496 Other bond securities: U.S. government and government sponsored entities - 1,845 - - - 1,845 Non-U.S. governments - - - - - - Corporate debt - 12 - - - 12 RMBS - 290 139 - - 429 CMBS - 273 47 - - 320 CDO/ABS - 173 2,512 - - 2,685 Total other bond securities - 2,593 2,698 - - 5,291 Equity securities 929 76 51 - - 1,056 Other invested assets (b) - 102 1,827 - - 1,929 Derivative assets (c) Interest rate contracts - 4,637 - - - 4,637 Foreign exchange contracts - 1,020 2 - - 1,022 Equity contracts 9 923 198 - - 1,130 Credit contracts - - 2 - - 2 Other contracts - - 14 - - 14 Counterparty netting and cash collateral - - - ( 3,812) ( 2,219) ( 6,031) Total derivative assets 9 6,580 216 ( 3,812) ( 2,219) 774 Short-term investments 2,379 3,589 - - - 5,968 Other assets - - 113 - - 113 Separate account assets 96,560 3,730 - - - 100,290 Total $ 99,978 $ 261,176 $ 31,794 $ ( 3,812) $ ( 2,219) $ 386,917 Liabilities: Policyholder contract deposits $ - $ - $ 9,798 $ - $ - $ 9,798 Derivative liabilities (c) Interest rate contracts 1 4,435 - - - 4,436 Foreign exchange contracts - 1,090 - - - 1,090 Equity contracts 14 162 47 - - 223 Credit contracts - 23 44 - - 67 Other contracts - - 6 - - 6 Counterparty netting and cash collateral - - - ( 3,812) ( 1,441) ( 5,253) Total derivative liabilities 15 5,710 97 ( 3,812) ( 1,441) 569 Fortitude Re funds withheld payable - - 6,042 - - 6,042 Other liabilities - 1 - - - 1 Long-term debt - 2,097 - - - 2,097 Total $ 15 $ 7,808 $ 15,937 $ ( 3,812) $ ( 1,441) $ 18,507 (a) Represents netting of derivative exposures covered by qualifying master netting agreements. (b) Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $ 8.4 billion and $ 6.5 billion as of December 31, 2021 and December 31, 2020, respectively. (c) Presented as part of Other assets and Other liabilities on the Consolidated Balance Sheets. Changes in Level 3 Recurring Fair Value Measurements The following tables present changes during the years ended December 31, 2021 and 2020 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Consolidated Balance Sheets at December 31, 2021 and 2020: Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive Gains Issuances (Losses) Included Income (Loss) for Fair Value (Losses) Other and Gross Gross Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers End Instruments Held Instruments Held (in millions) of Year in Income Income (Loss) Net In Out Other of Year at End of Year at End of Year December 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,105 $ 15 $ ( 9) $ ( 358) $ - $ ( 260) $ ( 62) $ 1,431 $ - $ 254 Non-U.S. governments 5 - ( 1) 1 5 ( 3) - 7 - - Corporate debt 2,349 ( 20) ( 31) 188 524 ( 369) - 2,641 - ( 141) RMBS 11,694 595 ( 127) ( 1,163) 8 ( 629) - 10,378 - 790 CMBS 922 25 ( 49) 414 57 ( 179) - 1,190 - ( 55) CDO/ABS 9,814 38 ( 122) 1,588 1,138 ( 1,241) - 11,215 - 315 Total bonds available for sale 26,889 653 ( 339) 670 1,732 ( 2,681) ( 62) 26,862 - 1,163 Other bond securities: Corporate debt - ( 1) - 135 - - - 134 ( 1) - RMBS 139 3 - 54 - - - 196 ( 87) - CMBS 47 ( 3) - ( 15) 6 - - 35 2 - CDO/ABS 2,512 28 - ( 208) - - - 2,332 127 - Total other bond securities 2,698 27 - ( 34) 6 - - 2,697 41 - Equity securities 51 11 1 ( 123) 77 ( 11) - 6 3 - Other invested assets 1,827 641 ( 14) ( 570) 64 - - 1,948 617 - Other assets 113 - - 1 - - - 114 - - Total $ 31,578 $ 1,332 $ ( 352) $ ( 56) $ 1,879 $ ( 2,692) $ ( 62) $ 31,627 $ 661 $ 1,163 Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive (Gains) Issuances (Losses) Included Income (Loss) for Fair Value Losses Other and Gross Gross Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers End Instruments Held Instruments Held (in millions) of Year in Income Income (Loss) Net In Out Other of Year at End of Year at End of Year Liabilities: Policyholder contract de |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
INVESTMENTS | |
INVESTMENTS | 5. Investments Fixed Maturity Securities Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or are measured at fair value at our election. None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2021 or 2020. Unrealized gains and losses from available for sale investments in fixed maturity securities carried at fair value were reported as a separate component of AOCI, net of policy related amounts and deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity securities measured at fair value at our election are reflected in Net investment income. Investments in fixed maturity securities are recorded on a trade-date basis. Interest income is recognized using the effective yield method and reflects amortization of premium and accretion of discount. Premiums and discounts arising from the purchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain structured securities, recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that are not high credit quality, the structured securities yields are based on expected cash flows which take into account both expected credit losses and prepayments. An allowance for credit losses is not established upon initial recognition of the asset (unless the security is determined to be a purchased credit deteriorated (PCD) asset which is discussed in more detail below). Subsequently, differences between actual and expected cash flows and changes in expected cash flows are recognized as adjustments to the allowance for credit losses. Changes that cannot be reflected as adjustments to the allowance for credit losses are accounted for as prospective adjustments to yield. Securities Available for Sale The following table presents the amortized cost or cost and fair value of our available for sale securities: December 31, 2021 Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair (in millions) Cost Losses (a) Gains Losses Value Bonds available for sale: U.S. government and government sponsored entities $ 7,874 $ - $ 347 $ ( 27) $ 8,194 Obligations of states, municipalities and political subdivisions 12,760 - 1,782 ( 15) 14,527 Non-U.S. governments 15,858 - 719 ( 247) 16,330 Corporate debt 163,064 ( 89) 13,892 ( 1,259) 175,608 Mortgage-backed, asset-backed and collateralized: RMBS 25,027 ( 9) 2,422 ( 153) 27,287 CMBS 15,333 - 555 ( 79) 15,809 CDO/ABS 19,294 - 276 ( 123) 19,447 Total mortgage-backed, asset-backed and collateralized 59,654 ( 9) 3,253 ( 355) 62,543 Total bonds available for sale (b) $ 259,210 $ ( 98) $ 19,993 $ ( 1,903) $ 277,202 December 31, 2020 Bonds available for sale: U.S. government and government sponsored entities $ 3,640 $ - $ 503 $ ( 17) $ 4,126 Obligations of states, municipalities and political subdivisions 13,915 - 2,216 ( 7) 16,124 Non-U.S. governments 14,231 ( 4) 1,181 ( 63) 15,345 Corporate debt 150,111 ( 164) 19,905 ( 554) 169,298 Mortgage-backed, asset-backed and collateralized: RMBS 28,551 ( 16) 3,000 ( 70) 31,465 CMBS 15,182 ( 1) 1,023 ( 71) 16,133 CDO/ABS 18,707 ( 1) 425 ( 126) 19,005 Total mortgage-backed, asset-backed and collateralized 62,440 ( 18) 4,448 ( 267) 66,603 Total bonds available for sale (b) $ 244,337 $ ( 186) $ 28,253 $ ( 908) $ 271,496 (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 Other comprehensive income (loss). (b) At December 31, 2021 and 2020, bonds available for sale held by us that were below investment grade or not rated totaled $ 27.0 billion and $ 28.2 billion, respectively. Securities Available for Sale in a Loss Position for Which No Allowance for Credit Loss Has Been Recorded 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 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (in millions) Value Losses Value Losses Value Losses December 31, 2,021.0 Bonds available for sale: U.S. government and government sponsored entities $ 3,696 $ 14 $ 447 $ 13 $ 4,143 $ 27 Obligations of states, municipalities and political subdivisions 714 11 57 4 771 15 Non-U.S. governments 4,644 115 1,324 132 5,968 247 Corporate debt 31,914 720 8,819 467 40,733 1,187 RMBS 5,362 102 1,154 46 6,516 148 CMBS 3,980 63 153 16 4,133 79 CDO/ABS 8,263 112 339 11 8,602 123 Total bonds available for sale $ 58,573 $ 1,137 $ 12,293 $ 689 $ 70,866 $ 1,826 December 31, 2020 Bonds available for sale: U.S. government and government sponsored entities $ 649 $ 17 $ - $ - $ 649 $ 17 Obligations of states, municipalities and political subdivisions 267 4 78 3 345 7 Non-U.S. governments 1,287 28 262 33 1,549 61 Corporate debt 11,715 348 1,283 81 12,998 429 RMBS 3,486 40 282 18 3,768 58 CMBS 1,644 58 346 12 1,990 70 CDO/ABS 5,456 81 3,063 45 8,519 126 Total bonds available for sale $ 24,504 $ 576 $ 5,314 $ 192 $ 29,818 $ 768 At December 31, 2021, we held 15,029 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 2,644 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). At December 31, 2020, we held 5,105 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 949 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). We did not recognize the unrealized losses in earnings on these fixed maturity securities at December 31, 2021 because it was determined that such losses were due to non-credit factors. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. For fixed maturity securities with significant declines, we performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, liquidity position, expected defaults, industry and sector analysis, forecasts and available market data. Contractual Maturities of Fixed Maturity Securities Available for Sale The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity: Total Fixed Maturity Securities Available for Sale Amortized Cost, (in millions) Net of Allowance Fair Value December 31, 2021 Due in one year or less $ 7,582 $ 7,634 Due after one year through five years 48,204 49,347 Due after five years through ten years 46,218 48,587 Due after ten years 97,463 109,091 Mortgage-backed, asset-backed and collateralized 59,645 62,543 Total $ 259,112 $ 277,202 Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. 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, 2021 2020 2019 Gross Gross Gross Gross Gross Gross Realized Realized Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Gains Losses Fixed maturity securities $ 1,369 $ 441 $ 1,824 $ 810 $ 650 $ 330 For the years ended December 31, 2021 and 2020, the aggregate fair value of available for sale securities sold was $ 27.3 billion and $ 23.0 billion, respectively, which resulted in net realized gains (losses) of $ 928 million and $ 1.0 billion, respectively. Included within the net realized gains (losses) are $ 717 million and $ 707 million of net realized gains (losses) for the years ended December 31, 2021 and 2020, respectively, which relate to Fortitude Re funds withheld assets. These net realized gains (losses) are included in Net realized gains (losses) on Fortitude Re funds withheld assets. For the year ended December 31, 2019, the aggregate fair value of available for sale securities sold was $ 22.0 billion, which resulted in net realized gains of $ 320 million. Other Securities Measured at Fair Value 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: December 31, 2021 December 31, 2020 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 1,750 25 % $ 1,845 29 % Obligations of states, municipalities and political subdivisions 97 1 - - Non-U.S. governments 76 1 - - Corporate debt 1,050 15 12 - Mortgage-backed, asset-backed and collateralized : RMBS 411 6 429 7 CMBS 315 4 320 5 CDO/ABS and other collateralized 2,579 37 2,685 42 Total mortgage-backed, asset-backed and collateralized 3,305 47 3,434 54 Total fixed maturity securities 6,278 89 5,291 83 Equity securities 739 11 1,056 17 Total $ 7,017 100 % $ 6,347 100 % Other Invested Assets The following table summarizes the carrying amounts of other invested assets: December 31, December 31, (in millions) 2021 2020 Alternative investments (a) (b) $ 10,951 $ 9,572 Investment real estate (c) 2,727 7,930 All other investments (d) 1,990 1,558 Total $ 15,668 $ 19,060 (a) At December 31, 2021, included hedge funds of $ 2.0 billion and private equity funds of $ 8.9 billion. At December 31, 2020, included hedge funds of $ 2.3 billion, private equity funds of $ 7.0 billion, and unconsolidated affordable housing partnerships of $ 257 million. (b) At December 31, 2021, approximately 62 percent of our hedge fund portfolio is available for redemption in 2022. The remaining 38 percent will be available for redemption between 2023 and 2028. (c) Represents values net of accumulated depreciation. At December 31, 2021 and 2020, the accumulated depreciation was $ 778 million and $ 756 million, respectively, excluding depreciation related to our affordable housing portfolio that has been sold. (d) Includes AIG’s 3.5 percent ownership interest in Fortitude Holdings which is recorded using the measurement alternative for equity securities and is carried at cost, which was $ 100 million as of December 31, 2021 and 2020. Other Invested Assets Carried at Fair Value Certain hedge funds, private equity funds, and other investment partnerships for which we have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income. Other Invested Assets – Equity Method Investments We account for hedge funds, private equity funds, affordable housing partnerships and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating and financial policies, or we have elected the fair value option. Under the equity method of accounting, our carrying amount generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income. In applying the equity method of accounting, we consistently use the most recently available financial information provided by the general partner or manager of each of these investments. Hedge funds are reported as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag. The financial statements of these investees are generally audited annually. Summarized Financial Information of Equity Method Investees 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) 2021 2020 2019 Operating results: Total revenues $ 31,560 $ 13,090 $ 8,045 Total expenses ( 2,241) ( 2,897) ( 3,115) Net income $ 29,319 $ 10,193 $ 4,930 At December 31, (in millions) 2021 2020 Balance sheet: Total assets $ 105,837 $ 85,083 Total liabilities $ ( 12,779) $ ( 10,462) The following table presents the carrying amount and ownership percentage of equity method investments at December 31, 2021 and 2020: 2021 2020 Carrying Ownership Carrying Ownership (in millions) Value Percentage Value Percentage Equity method investments $ 5,145 Various $ 4,548 Various Summarized financial information for these equity method investees may be presented on a lag, due to the unavailability of information for the investees at our respective balance sheet dates, and is included for the periods in which we held an equity method ownership interest. Other Investments Also included in Other invested assets are real estate held for investment. These investments are reported at cost, less depreciation and are subject to impairment review, as discussed below. Net Investment Income Net investment income represents income primarily from the following sources: Interest income and related expenses, including amortization of premiums and accretion of discounts with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable. Dividend income from common and preferred stocks. Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option. Earnings from alternative investments. Prepayment premiums. The following table presents the components of Net investment income: Years Ended December 31, 2021 2020 2019 Excluding Fortitude Re Excluding Fortitude Re Fortitude Funds Fortitude Funds Re Funds Withheld Re Funds Withheld (in millions) Withheld Assets Assets Total Withheld Assets Assets Total Total Available for sale fixed maturity securities, including short-term investments $ 8,583 $ 1,468 $ 10,051 $ 9,508 $ 851 $ 10,359 $ 10,768 Other fixed maturity securities (a) ( 19) 7 ( 12) 540 13 553 1,015 Equity securities ( 237) - ( 237) 200 - 200 159 Interest on mortgage and other loans 1,745 207 1,952 1,883 106 1,989 2,030 Alternative investments (b) 2,579 321 2,900 913 99 1,012 1,088 Real estate 225 - 225 195 - 195 304 Other investments (c) 250 5 255 ( 120) 1 ( 119) ( 220) Total investment income 13,126 2,008 15,134 13,119 1,070 14,189 15,144 Investment expenses 485 37 522 541 17 558 525 Net investment income $ 12,641 $ 1,971 $ 14,612 $ 12,578 $ 1,053 $ 13,631 $ 14,619 (a) Included in the years ended December 31, 2021, 2020 and 2019 was income (loss) of $( 49) million, $ 195 million and $ 177 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, 2021, 2020 and 2019 was income (loss) of $ 65 million, $( 162) million and $( 161) million, respectively, related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above. Net Realized Gains and Losses Net realized gains and losses are determined by specific identification. The net realized gains and losses are generated primarily from the following sources: Sales of available for sale fixed maturity securities, real estate and other alternative investments. Reductions to the amortized cost basis of available for sale fixed maturity securities that have been written down due to our intent to sell them or it being more likely than not that we will be required to sell them. Changes in the allowance for credit losses on bonds available for sale, mortgage and other loans receivable, and loans commitments. Changes in fair value of free standing and embedded derivatives, including changes in the non-performance adjustment, except for those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized gains (losses). Foreign exchange gains and losses resulting from foreign currency transactions. Changes in fair value of the embedded derivative related to the Fortitude Re funds withheld assets. The following table presents the components of Net realized gains (losses): Years Ended December 31, 2021 2020 2019 Excluding Fortitude Re Excluding Fortitude Re Fortitude Re Funds Fortitude Re Funds Funds Withheld Funds Withheld (in millions) Withheld Assets Assets Total Withheld Assets Assets Total Total Sales of fixed maturity securities $ 211 $ 717 $ 928 $ 307 $ 707 $ 1,014 $ 320 Other-than-temporary impairments - - - - - - ( 174) Intent to sell (a) - - - ( 3) - ( 3) - Change in allowance for credit losses on fixed maturity securities 19 7 26 ( 270) ( 10) ( 280) - Change in allowance for credit losses on loans 163 9 172 ( 105) 2 ( 103) ( 46) Foreign exchange transactions 16 ( 5) 11 365 13 378 227 Variable annuity embedded derivatives, net of related hedges ( 39) - ( 39) 166 - 166 ( 294) All other derivatives and hedge accounting 179 28 207 ( 672) ( 249) ( 921) ( 22) Other (b) 1,202 247 1,449 156 - 156 621 Net realized gains – excluding Fortitude Re funds withheld embedded derivative 1,751 1,003 2,754 ( 56) 463 407 632 Net realized gains (losses) on Fortitude Re funds withheld embedded derivative - ( 603) ( 603) - ( 2,645) ( 2,645) - Net realized gains (losses) $ 1,751 $ 400 $ 2,151 $ ( 56) $ ( 2,182) $ ( 2,238) $ 632 (a) In 2019, Intent to sell was included in Other-than-temporary impairments. (b) In 2021, primarily includes gains from sale of global real estate investments of $ 1.1 billion and gains from affordable housing partnerships of $ 208 million. In 2019, includes $ 200 million from the sale and concurrent leaseback of our corporate headquarters and $ 300 million as a result of sales in investment real estate properties. Change in Unrealized Appreciation (Depreciation) of 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) 2021 2020 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ ( 9,255) $ 9,489 Other investments - 2 Total increase (decrease) in unrealized appreciation (depreciation) of investments $ ( 9,255) $ 9,491 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, 2021 2020 Other Other Invested Invested (in millions) Equities Assets Total Equities Assets Total Net gains (losses) recognized during the period on equity securities and other investments $ ( 237) $ 2,028 $ 1,791 $ 200 $ 832 $ 1,032 Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the year ( 180) 114 ( 66) ( 23) 46 23 Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date $ ( 57) $ 1,914 $ 1,857 $ 223 $ 786 $ 1,009 Evaluating Investments for AN ALLOWANCE FOR CREDIT LOSSES/OTHER-than-TEMPORARY IMPAIRMENTS Fixed Maturity Securities Subsequent to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020 If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and if the fair value of the security is below amortized cost, an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to Net realized gains (losses). No allowance is established in these situations and any previously recorded allowance is reversed. The new cost basis is not adjusted for subsequent increases in estimated fair value . When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. For fixed maturity securities for which a decline in the fair value below the amortized cost is due to credit related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding charge to Net realized gains (losses). The allowance for credit losses is limited to the difference between amortized cost and fair value. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not associated with credit related factors is presented in unrealized appreciation (depreciation) of fixed maturity securities on which an allowance for credit losses was previously recognized (a separate component of AOCI). Accrued interest is excluded from the measurement of the allowance for credit losses. When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class: Current delinquency rates; Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Expected prepayment speeds. When estimating future cash flows for corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers: Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Scenarios specific to the issuer and the security, which may also include estimates of outcomes of corporate restructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets. We consider severe price declines in our assessment of potential credit impairments. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. Under the current expected credit loss (CECL) model, credit losses are reassessed each period. The allowance for credit losses and the corresponding charge to Net realized gains (losses) can be reversed if conditions change, however, the allowance for credit losses will never be reduced below zero. When we determine that all or a portion of a fixed maturity security is uncollectable, the uncollectable amortized cost amount is written off with a corresponding reduction to the allowance for credit losses. If we collect cash flows that were previously written off, the recovery is recognized by recording a gain in Net realized gains (losses). Prior to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020 If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, an other-than-temporary impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized losses. When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. For fixed maturity securities for which a credit impairment has occurred, the amortized cost is written down to the estimated recoverable value with a corresponding charge to realized losses. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not related to a credit impairment is presented in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized (a separate component of accumulated other comprehensive income). We consider severe price declines in our assessment of potential credit impairments. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. In periods subsequent to the recognition of an other-than-temporary impairment charge for available for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and the expected undiscounted recoverable value over the remaining expected holding period of the security. Credit Impairments 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, 2021 2020 Non- Non- (in millions) Structured Structured Total Structured Structured Total Balance, beginning of year* $ 17 $ 169 $ 186 $ 7 $ - $ 7 Additions: Securities for which allowance for credit losses were not previously recorded 9 56 65 38 290 328 Purchases of available for sale debt securities accounted for as purchased credit deteriorated assets - - - 26 - 26 Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets - - - 1 - 1 Reductions: Securities sold during the period ( 4) ( 29) ( 33) ( 5) ( 26) ( 31) 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 ( 14) ( 77) ( 91) ( 50) 33 ( 17) Write-offs charged against the allowance - ( 29) ( 29) - ( 128) ( 128) Balance, end of year $ 8 $ 90 $ 98 $ 17 $ 169 $ 186 * The beginning balance incorporates the Day 1 gross up on PCD assets held as of January 1, 2020. The following table presents a rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings for available for sale fixed maturity securities: Year Ended December 31, (in millions) 2019 Balance, beginning of year $ - Increases due to: Credit impairments on new securities subject to impairment losses 136 Additional credit impairments on previously impaired securities 17 Reductions due to: Credit impaired securities fully disposed for which there was no prior intent or requirement to sell ( 64) Accretion on securities previously impaired due to credit * ( 20) Balance, end of year $ 69 * Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time. Other Invested Assets Our equity method investments in private equity funds, hedge funds and other entities are evaluated for impairment each reporting period. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investments and specific inherent risks. Such risks may evolve based on the nature of the underlying investments. Our investments in real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compare expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings. Purchased Credit Deteriorated Securities We purchase certain RMBS securities that have experienced more-than-insignificant deterioration in credit quality since origination. These are referred to as PCD assets. At the time of purchase an allowance is recognized for these PCD assets by adding it to the purchase price to arrive at the initial amortized cost. There is no credit loss expense recognized upon acquisition of a PCD asset. When determining the initial allowance for credit losses, management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs: Current delinquency rates; Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Expected prepayment speeds. Subsequent to the acquisition date, the PCD assets follow the same accounting as other structured securities that are not high credit quality. We did not purchase securities with more than insignificant credit deterioration since their origination during 2021. During the twelve-month period ended December 31, 2020, we purchased certain securities which had more than insignificant credit deterioration since their origination. These PCD securities are held in the portfolio of bonds available for sale in their natural classes at December 31, 2020. The following table presents a reconciliation of the purchase price to the unpaid principal balance at the acquisition date of the PCD securities that were purchased with credit deterioration: Years Ended December 31, (in millions) 2021 2020 Unpaid principal balance $ - $ 644 Allowance for expected credit losses at acquisition - ( 26) Purchase (discount) premium - ( 149) Purchase price $ - $ 469 Pledged Investments Secured Financing and Similar Arrangements We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. Our secured financing transactions also include those that involve the transfer of securities to financial institutions in exchange for cash (securities lending agreements). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts plus accrued interest, other than those that are accounted for at fair value. Pledged collateral levels are monitored daily and are generally maintained at an agreed-upon per |
LENDING ACTIVITIES
LENDING ACTIVITIES | 12 Months Ended |
Dec. 31, 2021 | |
LENDING ACTIVITIES | |
LENDING ACTIVITIES | 6. Lending Activities Mortgage and other loans receivable include commercial mortgages, residential mortgages, life insurance policy loans, commercial loans, and other loans and notes receivable. Commercial mortgages, residential mortgages, commercial loans, and other loans and notes receivable are carried at unpaid principal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned. Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method. Premiums and discounts on purchased residential mortgages are also amortized to income as an adjustment to earnings using the interest method. Life insurance policy loans are carried at unpaid principal balances. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy. The following table presents the composition of Mortgage and other loans receivable, net: December 31, December 31, (in millions) 2021 2020 Commercial mortgages (a) $ 35,665 $ 36,424 Residential mortgages 5,492 4,645 Life insurance policy loans 1,843 1,986 Commercial loans, other loans and notes receivable (b) 3,677 3,321 Total mortgage and other loans receivable 46,677 46,376 Allowance for credit losses (c) ( 629) ( 814) Mortgage and other loans receivable, net $ 46,048 $ 45,562 (a) Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 21 percent and 10 percent, respectively, at December 31, 2021 and 24 percent and 10 percent, respectively, at December 31, 2020). (b) Includes loans held for sale which are carried at lower of cost or market and are collateralized primarily by hotels. As of December 31, 2021, the net carrying value of these loans was $ 15 million. (c) Does not include allowance for credit losses of $ 71 million and $ 79 million, respectively, at December 31, 2021 and 2020, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities. Interest income is not accrued when payment of contractual principal and interest is not expected. Any cash received on impaired loans is generally recorded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest is repaid or when a portion of the delinquent contractual payments are made and the ongoing required contractual payments have been made for an appropriate period. As of December 31, 2021, $ 7 million and $ 226 million of residential mortgage loans and commercial mortgage loans, respectively, were placed on nonaccrual status. As of December 31, 2020, $ 14 million and $ 238 million of residential mortgage loans and commercial mortgage loans, respectively, were placed on nonaccrual status. Accrued interest is presented separately and is included in Other assets on the Consolidated Balance Sheets. As of December 31, 2021, accrued interest receivable was $ 12 million and $ 126 million associated with residential mortgage loans and commercial mortgage loans, respectively. As of December 31, 2020, accrued interest receivable was $ 14 million and $ 129 million associated with residential mortgage loans and commercial mortgage loans, respectively. A significant majority of commercial mortgages in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan. Nonperforming loans are generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming loans were not significant for any of the periods presented. Credit Quality of Commercial Mortgages The following table presents debt service coverage ratios (a) December 31, 2021 (in millions) 2021 2020 2019 2018 2017 Prior Total >1.2X $ 2,245 $ 1,662 $ 5,126 $ 3,926 $ 3,557 $ 10,796 $ 27,312 1.00 - 1.20X 574 1,019 700 1,138 136 1,929 5,496 <1.00X 1 27 71 925 41 1,792 2,857 Total commercial mortgages $ 2,820 $ 2,708 $ 5,897 $ 5,989 $ 3,734 $ 14,517 $ 35,665 December 31, 2020 (in millions) 2020 2019 2018 2017 2016 Prior Total >1.2X $ 1,914 $ 5,596 $ 5,649 $ 3,941 $ 4,592 $ 10,730 $ 32,422 1.00 - 1.20X 770 467 456 144 161 1,106 3,104 <1.00X 4 86 343 87 96 282 898 Total commercial mortgages $ 2,688 $ 6,149 $ 6,448 $ 4,172 $ 4,849 $ 12,118 $ 36,424 The following table presents loan-to-value ratios (b) December 31, 2021 (in millions) 2021 2020 2019 2018 2017 Prior Total Less than 65% $ 2,286 $ 2,272 $ 4,149 $ 4,815 $ 2,892 $ 9,902 $ 26,316 65% to 75% 372 410 1,748 1,174 406 3,490 7,600 76% to 80% - - - - 188 274 462 Greater than 80% 162 26 - - 248 851 1,287 Total commercial mortgages $ 2,820 $ 2,708 $ 5,897 $ 5,989 $ 3,734 $ 14,517 $ 35,665 December 31, 2020 (in millions) 2020 2019 2018 2017 2016 Prior Total Less than 65% $ 2,382 $ 3,755 $ 3,855 $ 2,565 $ 2,852 $ 8,145 $ 23,554 65% to 75% 274 2,330 2,363 1,306 1,200 2,551 10,024 76% to 80% 28 45 30 - 70 515 688 Greater than 80% 4 19 200 301 727 907 2,158 Total commercial mortgages $ 2,688 $ 6,149 $ 6,448 $ 4,172 $ 4,849 $ 12,118 $ 36,424 (a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 1.9X at December 31, 2021 and 2.2X at December 31, 2020. The debt service coverage ratios have been updated within the last three months. The debt service coverage ratios are updated when additional relevant information becomes available. (b) The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 57 percent at December 31, 2021 and was 60 percent at December 31, 2020. The loan-to-value ratios have been updated within the last three months. The following table presents the credit quality performance indicators for commercial mortgages: Number Percent of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total Total $ December 31, 2021 Credit Quality Performance Indicator: In good standing 636 $ 14,267 $ 9,695 $ 4,778 $ 3,858 $ 1,985 $ 432 $ 35,015 98 % Restructured (a) 8 - 354 25 - 136 - 515 2 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure 5 - 81 54 - - - 135 - Total (b) 649 $ 14,267 $ 10,130 $ 4,857 $ 3,858 $ 2,121 $ 432 $ 35,665 100 % Allowance for credit losses $ 109 $ 247 $ 103 $ 47 $ 31 $ 8 $ 545 2 % December 31, 2020 Credit Quality Performance Indicator: In good standing 688 $ 13,969 $ 10,506 $ 5,144 $ 3,766 $ 2,064 $ 460 $ 35,909 99 % Restructured (a) 5 - 52 50 - 4 - 106 - 90 days or less delinquent 3 - 87 - - 114 - 201 - >90 days delinquent or in process of foreclosure 4 - 67 55 - 86 - 208 1 Total (b) 700 $ 13,969 $ 10,712 $ 5,249 $ 3,766 $ 2,268 $ 460 $ 36,424 100 % Allowance for credit losses $ 145 $ 267 $ 145 $ 53 $ 65 $ 10 $ 685 2 % (a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see below. (b) Does not reflect allowance for credit losses. The following table presents credit quality performance indicators for residential mortgages by year of vintage: December 31, 2021 (in millions) 2021 2020 2019 2018 2017 Prior Total FICO*: 780 and greater $ 1,601 $ 691 $ 297 $ 107 $ 192 $ 501 $ 3,389 720 - 779 1,306 230 86 44 58 154 1,878 660 - 719 48 42 22 12 20 49 193 600 - 659 1 1 2 3 2 12 21 Less than 600 - - 1 1 2 7 11 Total residential mortgages $ 2,956 $ 964 $ 408 $ 167 $ 274 $ 723 $ 5,492 December 31, 2020 (in millions) 2020 2019 2018 2017 2016 Prior Total FICO*: 780 and greater $ 522 $ 619 $ 283 $ 469 $ 539 $ 484 $ 2,916 720 - 779 478 349 103 155 180 156 1,421 660 - 719 19 61 28 42 51 58 259 600 - 659 1 5 6 7 4 12 35 Less than 600 - - 1 2 2 9 14 Total residential mortgages $ 1,020 $ 1,034 $ 421 $ 675 $ 776 $ 719 $ 4,645 * Fair Isaac Corporation (FICO) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last twelve months. Methodology Used to Estimate the Allowance for Credit Losses Subsequent to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020 At the time of origination or purchase, an allowance for credit losses is established for mortgage and other loan receivables and is updated each reporting period. Changes in the allowance for credit losses are recorded in realized losses. This allowance reflects the risk of loss, even when that risk is remote, that is expected over the remaining contractual life of the loan. The allowance for credit losses considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts of future economic conditions. We revert to historical information when we determine that we can no longer reliably forecast future economic assumptions. The allowances for the commercial mortgage loans and residential mortgage loans are estimated utilizing a probability of default and loss given default model. Loss rate factors are determined based on historical data and adjusted for current and forecasted information. The loss rates are applied based on individual loan attributes and considering such data points as loan-to-value ratios, FICO scores, and debt service coverage. The estimate of credit losses also reflects management’s assumptions on certain macroeconomic factors that include, but are not limited to, gross domestic product growth, employment, inflation, housing price index, interest rates and credit spreads. Accrued interest is excluded from the measurement of the allowance for credit losses and accrued interest is reversed through interest income once a loan is placed on nonaccrual. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance. We also have off-balance sheet commitments related to our commercial mortgage loans. The liability for expected credit losses related to these commercial mortgage loan commitments is reported in Other liabilities in the Consolidated Balance Sheets. When a commitment is funded, we record a loan receivable and reclassify the liability for expected credit losses related to the commitment into loan allowance for expected credit losses. Other changes in the liability for expected credit losses on loan commitments are recorded in Net realized gains (losses) in the Consolidated Statements of Income (Loss). Prior to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020 Mortgage and other loans receivable are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. Impairment of commercial mortgages is typically determined using the fair value of collateral while impairment of other loans is typically determined using the present value of cash flows or the loan’s observable market price. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on statistical models primarily driven by past-due status, debt service coverage, loan-to-value ratio, property type and location, loan term, profile of the borrower and of the major property tenants, and loan seasoning. When all or a portion of a loan is deemed uncollectable, the uncollectable portion of the carrying amount of the loan is charged off against the allowance. The following table presents a rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable (a) Years Ended December 31, 2021 2020 2019 Commercial Other Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 685 $ 129 $ 814 $ 336 $ 102 $ 438 $ 318 $ 79 $ 397 Initial allowance upon CECL adoption - - - 311 7 318 - - - Loans charged off ( 2) - ( 2) ( 12) ( 5) ( 17) ( 2) ( 3) ( 5) Recoveries of loans previously charged off - - - - - - - - - Net charge-offs ( 2) - ( 2) ( 12) ( 5) ( 17) ( 2) ( 3) ( 5) Addition to (release of) allowance for loan losses ( 138) ( 26) ( 164) 50 25 75 20 26 46 Divestitures - ( 19) ( 19) - - - - - - Allowance, end of year $ 545 $ 84 $ 629 $ 685 $ 129 $ 814 $ 336 (b) $ 102 $ 438 (a) Does not include allowance for credit losses of $ 71 million and $ 79 million, respectively, at December 31, 2021 and 2020 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities. (b) The December 31, 2019 total allowance was calculated prior to the adoption of ASC 326 on January 1, 2020. Of the total allowance, $ 10 million relates to individually assessed credit losses on $ 148 million of commercial mortgages at December 31, 2020. As a result of the COVID-19 pandemic, including the significant global economic slowdown, our expectations and models used to estimate the allowance for losses on commercial and residential mortgage loans have been updated to reflect the current economic environment. The full impact of COVID-19 on real estate valuations remains uncertain and we will continue to review our valuations as further information becomes available. Troubled Debt Restructurings We modify loans to optimize their returns and improve their collectability, among other things. When we undertake such a modification with a borrower that is experiencing financial difficulty and the modification involves us granting a concession to the troubled debtor, the modification is a troubled debt restructuring (TDR). We assess whether a borrower is experiencing financial difficulty based on a variety of factors, including the borrower’s current default on any of its outstanding debt, the probability of a default on any of its debt in the foreseeable future without the modification, the insufficiency of the borrower’s forecasted cash flows to service any of its outstanding debt (including both principal and interest), and the borrower’s inability to access alternative third-party financing at an interest rate that would be reflective of current market conditions for a non-troubled debtor. Concessions granted may include extended maturity dates, interest rate changes, principal or interest forgiveness, payment deferrals and easing of loan covenants. In response to the COVID-19 pandemic, there was an increase in the volume of loan modifications in our commercial mortgage, residential mortgage and leveraged loan portfolios in 2020. The COVID-19 related modifications were primarily in the form of short term payment deferrals (one to six months). Short-term payment deferrals are not considered a concession and therefore these modifications are not considered a TDR. As of December 31, 2021, the number of loans in deferral or in the process of being modified have returned to pre-COVID-19 levels. During the years ended December 31, 2021 and 2020, loans with a carrying value of $ 345 million and $ 106 million, respectively, were modified in TDRs. |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2021 | |
REINSURANCE | |
REINSURANCE | 7. Reinsurance In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. In addition, our General Insurance subsidiaries assume reinsurance from other insurance companies. We determine the portion of the incurred but not reported (IBNR) loss that will be recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss adjustment expenses incurred, ceded unearned premiums and ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for credit losses and disputes requires judgment for which key inputs typically include historical trends regarding uncollectible balances, disputes and credit events as well as specific reviews of balances in dispute or subject to credit impairment. The allowance for credit losses and disputes on reinsurance assets was $ 333 million and $ 326 million at December 31, 2021 and 2020, respectively. Changes in the allowance for credit losses and disputes on reinsurance assets are reflected in Policyholder benefits and losses incurred within the Consolidated Statements of Income (Loss). The following table provides supplemental information for loss and benefit reserves, gross and net of ceded reinsurance: At December 31, 2021 2020 (b) As Net of As Net of (in millions) Reported Reinsurance Reported Reinsurance Liability for unpaid losses and loss adjustment expenses $ ( 79,026) $ ( 43,678) $ ( 77,720) $ ( 43,154) Future policy benefits for life and accident and health insurance contracts ( 59,950) ( 33,964) ( 56,878) ( 30,692) Policyholder contract deposits ( 156,686) ( 152,266) ( 154,470) ( 149,501) Reserve for unearned premiums ( 19,313) ( 15,028) ( 18,660) ( 14,606) Other policyholder funds ( 3,476) ( 2,885) ( 3,548) ( 2,933) Reinsurance assets (a) 70,630 70,390 (a) Reinsurance assets excludes (i) allowance for credit losses and disputes of $ 333 million and $ 326 million (of which $ 135 million pertains to CECL reserve for Liability for unpaid losses and loss adjustment expenses) for both years ended December 31, 2021 and 2020, respectively, (ii) paid loss recoveries of $ 3,645 million and $ 3,157 million for the years ended December 31, 2021 and 2020, respectively, and (iii) policy and contract claims recoverable of $ 342 million and $ 320 million for the years ended December 31, 2021 and 2020, respectively. (b) Liabilities for certain universal life products were reclassified from Policyholder contract deposits to Future policy benefits for life and accident and health insurance contracts. For additional information, see Note 1. Short-Duration Reinsurance Short-duration reinsurance is effected under reinsurance treaties and by negotiation on individual risks. Certain of these reinsurance arrangements consist of excess of loss contracts that protect us against losses above stipulated amounts. Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection received. Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of Reinsurance assets. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsurers. Any subsequent differences arising on such estimates are recorded in the periods in which they are determined. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premiums. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsureds. Any subsequent differences arising on such estimates are recorded in the periods in which they are determined. For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. The following table presents short-duration insurance premiums written and earned: Years Ended December 31, (in millions) 2021 2020 2019 Premiums written: Direct $ 30,910 $ 28,521 $ 29,338 Assumed 7,209 5,947 5,808 Ceded ( 11,702) ( 11,012) ( 9,692) Net $ 26,417 $ 23,456 $ 25,454 Premiums earned: Direct $ 30,279 $ 28,596 $ 30,017 Assumed 6,640 5,984 6,395 Ceded ( 11,301) ( 10,435) ( 9,526) Net $ 25,618 $ 24,145 $ 26,886 For the years ended December 31, 2021, 2020 and 2019, reinsurance recoveries, which reduced losses and loss adjustment expenses incurred, amounted to $ 7.2 billion, $ 7.7 billion and $ 4.7 billion, respectively. Retroactive reinsurance agreements are reinsurance agreements under which our reinsurer agrees to reimburse us as a result of past insurable events. For these agreements, the excess of the amounts ultimately collectible under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves. The amount of the deferral is recalculated each period based on loss payments and updated estimates. If the consideration paid exceeds the ultimate losses collectible under the agreement, the net loss on the agreement is recognized in income immediately. Ceded loss reserves under retroactive agreements were $ 16.8 billion and $ 18.9 billion, and the deferred gain liability was $ 1.3 billion and $ 1.7 billion, as of December 31, 2021 and 2020, respectively. The effect on income from amortization of the deferred gain was $ 191 million, $ 237 million and $ 219 million for the years ended December 31, 2021, 2020 and 2019, respectively. In the first quarter of 2017, we entered into an adverse development reinsurance agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc., under which we transferred to NICO 80 percent of the reserve risk on substantially all of our U.S. Commercial long-tail exposures for accident years 2015 and prior. Under this agreement, we ceded to NICO 80 percent of the losses on subject business paid on or after January 1, 2016 in excess of $ 25 billion of net paid losses, up to an aggregate limit of $ 25 billion. We account for this transaction as retroactive reinsurance. This transaction resulted in a gain, which under U.S. GAAP retroactive reinsurance accounting is deferred and amortized into income over the settlement period. NICO created a collateral trust account as security for their claim payment obligations to us, into which they deposited the consideration paid under the agreement, and Berkshire Hathaway Inc. has provided a parental guarantee to secure NICO’s obligations under the agreement. Long-Duration Reinsurance Long-duration reinsurance is effected principally under yearly renewable term (YRT) treaties, along with a large modco treaty with a former affiliate, Fortitude Re, that was deconsolidated following the Majority Interest Fortitude Sale. This modco treaty reinsures the majority of our long-duration run-off business. The premiums with respect to YRT treaties are earned over the contract period in proportion to the protection provided, while ceded premiums related to modco treaties are recognized when due. Amounts recoverable on YRT treaties are recognized when claims are incurred on the reinsured policies and are presented as a component of reinsurance assets. Amounts recoverable from reinsurers related to coinsurance or modco contracts are estimated in a manner consistent with the assumptions used for the underlying policy benefits. Amounts recoverable from reinsurers are presented as a component of Reinsurance assets. The following table presents premiums earned and policy fees for our long-duration life insurance and annuity operations: Years Ended December 31, (in millions) 2021 2020 2019 Premiums Direct $ 4,596 $ 4,381 $ 4,363 Assumed 2,265 1,058 228 Ceded ( 1,220) ( 1,061) ( 916) Net $ 5,641 $ 4,378 $ 3,675 Policy Fees Direct $ 3,130 $ 2,957 $ 3,016 Assumed - - - Ceded ( 79) ( 40) ( 1) Net $ 3,051 $ 2,917 $ 3,015 Long-duration reinsurance recoveries, which reduced Policyholder benefits and losses incurred, was approximately $ 1.3 billion, $ 1.1 billion and $ 1.0 billion for the years ended December 31, 2021, 2020 and 2019, respectively. The following table presents long-duration insurance in-force ceded to other insurance companies: At December 31, (in millions) 2021 2020 * 2019 Long-duration insurance in force ceded $ 363,008 $ 349,453 $ 264,732 * The Long-duration insurance in force ceded in 2020 has been revised from $ 292.5 billion to $ 349.5 billion to correct Long-duration insurance in force ceded in 2020. This correction has no impact on AIG’s consolidated financial statements and is not considered material to previously issued financial statements. Long-duration insurance in-force assumed as a percentage of gross long-duration insurance in-force was 0.01 percent, 0.02 percent, and 0.02 percent at December 31, 2021, 2020 and 2019, respectively; and premiums assumed represented 33 percent, 19.5 percent and 5 percent of gross premiums for the years ended December 31, 2021, 2020 and 2019, respectively. The U.S. Life and Retirement companies manage the capital impact of their statutory reserve requirements, including those resulting from the National Association of Insurance Commissioners (NAIC) Model Regulation “Valuation of Life Insurance Policies” (Regulation XXX) and NAIC Actuarial Guideline 38 (Guideline AXXX), through unaffiliated and affiliated reinsurance transactions. Effective July 1, 2016, one of the U.S. Life and Retirement companies entered into an agreement to cede approximately $ 5 billion of statutory reserves for certain whole life and universal life policies to an unaffiliated reinsurer. Effective December 31, 2016, the same life insurance subsidiary recaptured term and universal life reserves subject to Regulation XXX and Guideline AXXX, previously ceded to an affiliate, and ceded approximately $ 14 billion of such statutory reserves to an unaffiliated reinsurer under an amendment to the December 31, 2016 agreement. Under U.S. GAAP, these unaffiliated reinsurance transactions use deposit accounting with a reinsurance risk charge recorded in income, whereas such affiliated transactions are eliminated in consolidation. Under one affiliated reinsurance arrangement, one of the U.S. Life and Retirement companies obtains letters of credit to support statutory recognition of the ceded reinsurance. As of December 31, 2021, this subsidiary had a bilateral letter of credit totaling $ 250 million, which was issued on February 7, 2014 and expires on February 7, 2025. The letter of credit is subject to reimbursement by AIG Parent in the event of a drawdown. In addition, a domestic life insurance subsidiary domiciled in Texas further manages the capital impact of statutory reserve requirements related to fixed index annuities with guaranteed living benefits through two unaffiliated excess of loss reinsurance agreements effective December 31, 2019 and 2020, respectively. Pursuant to a permitted statutory accounting practice, the subsidiary recognizes an admitted asset of approximately $ 0.6 billion related to the notional value of coverage defined in the excess of loss reinsurance agreements, net of specified amounts. Under U.S. GAAP, an asset will only be recognized if claims accumulate in an amount in excess of the attachment point specified in the agreements. For additional information on the use of affiliated reinsurance for Regulation XXX and Guideline AXXX reserves see Note 18. Sale of Fortitude Holdings On June 2, 2020, we completed the Majority Interest Fortitude Sale. AIG established Fortitude Re, a wholly owned subsidiary of Fortitude Holdings, in 2018 in a series of reinsurance transactions related to AIG’s Run-Off operations. As of December 31, 2021, approximately $ 29.6 billion of reserves from AIG’s Life and Retirement Run-Off Lines and approximately $ 3.8 billion of reserves from AIG’s General Insurance Run-Off Lines, related to business written by multiple wholly-owned AIG subsidiaries, had been ceded to Fortitude Re under these reinsurance transactions. As of closing of the Majority Interest Fortitude Sale, these reinsurance transactions are no longer considered affiliated transactions and Fortitude Re is the reinsurer of the majority of AIG’s Run-Off operations. Additionally, the Majority Interest Fortitude Sale was subject to a post-closing purchase price adjustment pursuant to which AIG would pay Fortitude Re for certain adverse development in property casualty related reserves, based on an agreed methodology, that may occur through December 31, 2023, up to a maximum payment of $ 500 million. Effective in the second quarter of 2021, AIG, Fortitude Holdings, Carlyle FRL, T&D and Carlyle amended the Purchase Agreement to finalize the post-closing purchase price adjustment for adverse reserve development. As a result of this amendment, during 2021, AIG recorded a $ 21 million benefit through Policyholder benefits and losses incurred and eliminated further net exposure to adverse development on the reserves ceded to Fortitude Re. These reinsurance transactions between AIG and Fortitude Re were structured as modco and loss portfolio transfer arrangements with funds withheld (funds withheld). In modco and funds withheld arrangements, the investments supporting the reinsurance agreements, and which reflect the majority of the consideration that would be paid to the reinsurer for entering into the transaction, are withheld by, and therefore continue to reside on the balance sheet of, the ceding company (i.e., AIG) thereby creating an obligation for the ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date. Additionally, as AIG maintains ownership of these investments, AIG will maintain its existing accounting for these assets (e.g., the changes in fair value of available for sale securities will be recognized within Other comprehensive income (loss)). As a result of the deconsolidation resulting from the Majority Interest Fortitude Sale, AIG has established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing reserves for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative and changes in fair value of the embedded derivative related to the funds withheld payable are recognized in earnings through Net realized gains (losses). This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements. There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re. The following summarizes the composition of the pool of assets: December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Value Value Value Value Corresponding Accounting Policy Fixed maturity securities - available for sale (a) $ 31,815 $ 31,815 $ 36,047 $ 36,047 Fair value through other comprehensive income (loss) Fixed maturity securities - fair value option 1,983 1,983 200 200 Fair value through net investment income Commercial mortgage loans 3,637 3,859 3,679 4,010 Amortized cost Real estate investments 201 395 358 585 Amortized cost Private equity funds / hedge funds 1,606 1,606 1,168 1,168 Fair value through net investment income Policy loans 380 380 413 413 Amortized cost Short-term investments 50 50 34 34 Fair value through net investment income Funds withheld investment assets 39,672 40,088 41,899 42,457 Derivative assets, net (b) 81 81 ( 1) ( 1) Fair value through net realized gains (losses) Other (c) 602 602 604 604 Amortized cost Total $ 40,355 $ 40,771 $ 42,502 $ 43,060 (a) The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $( 2.2) billion ($( 1.8) billion after-tax) for 2021 and $ 1.0 billion ($ 812 million after-tax) during the post deconsolidation period (June 2, 2020-December 31, 2020). (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 $ 389 million and $ 10 million, respectively, as of December 31, 2021. The derivative assets supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 357 million as of December 31, 2020. These derivative assets and liabilities are fully collateralized either by cash or securities. (c) Primarily comprised of Cash and Accrued investment income. The impact of the funds withheld arrangements with Fortitude Re was as follows: Years Ended December 31, (in millions) 2021 2020 Net underwriting income (a) $ - $ - Net investment income - Fortitude Re funds withheld assets 1,971 1,053 Net realized gains (losses) on Fortitude Re funds withheld assets: Net realized gains - Fortitude Re funds withheld assets 1,003 463 Net realized losses - Fortitude Re embedded derivatives ( 603) ( 2,645) Net realized gains (losses) on Fortitude Re funds withheld assets 400 ( 2,182) Income (loss) from continuing operations before income tax expense (benefit) 2,371 ( 1,129) Income tax expense (benefit) (b) 499 ( 237) Net income (loss) 1,872 ( 892) Change in unrealized appreciation (depreciation) of all other investments (b) ( 1,760) 812 Comprehensive income (loss) $ 112 $ ( 80) (a) Effective in the second quarter of 2021, an amendment was made to the purchase agreement to finalize the post-closing purchase price adjustment for adverse reserve development and as a result, during 2021, AIG recognized a $ 21 million benefit through Policyholder benefits and losses incurred. (b) The income tax expense (benefit) and the tax impact in AOCI was computed using AIG’s U.S. statutory tax rate of 21 percent. Various assets supporting the Fortitude Re funds withheld arrangements are reported at amortized cost, and as such, changes in the fair value of these assets are not reflected in the financial statements. However, changes in the fair value of these assets are included in the embedded derivative in the Fortitude Re funds withheld arrangements and the appreciation of these assets is the primary driver of the comprehensive income (loss) reflected above. Reinsurance Security Our third-party reinsurance arrangements do not relieve us from our direct obligations to our beneficiaries. Thus, a credit exposure exists with respect to both short-duration and long-duration reinsurance ceded to the extent that any reinsurer fails to meet the obligations assumed under any reinsurance agreement. We hold substantial collateral as security under related reinsurance agreements in the form of funds, securities, and/or letters of credit. A provision has been recorded for estimated unrecoverable reinsurance. In light of collateral held, we believe that no exposure to a single reinsurer represents an inappropriate concentration of credit risk to AIG. Gross reinsurance assets due from reinsurers exceeding 5 percent of our total reinsurance assets were approximately $ 51.5 billion and $ 54.0 billion at December 31, 2021 and 2020, respectively, of which approximately $ 3.1 billion and $ 2.6 billion at December 31, 2021 and 2020, respectively, was not secured by collateral. Reinsurance – Credit Losses The estimation of reinsurance recoverables involves a significant amount of judgment, particularly for latent exposures, such as asbestos, due to their long-tail nature. Reinsurance assets include reinsurance recoverables on unpaid losses and loss adjustment expenses that are estimated as part of our loss reserving process and, consequently, are subject to similar judgments and uncertainties as the estimation of gross loss reserves. Similarly, Other assets include reinsurance recoverables for contracts which are accounted for as deposits. We assess the collectability of reinsurance recoverable balances in each reporting period, through either historical trends of disputes and credit events or financial analysis of the credit quality of the reinsurer. We record adjustments to reflect the results of these assessments through an allowance for credit losses and disputes that reduces the carrying amount of reinsurance and other assets on the consolidated balance sheets (collectively, reinsurance recoverables). This estimate requires significant judgment for which key considerations include: paid and unpaid amounts recoverable; whether the balance is in dispute or subject to legal collection; the relative financial health of the reinsurer as determined by the Obligor Risk Ratings (ORRs) we assign to each reinsurer based upon our financial reviews; reinsurers that are financially troubled (i.e., in run-off, have voluntarily or involuntarily been placed in receivership, are insolvent, are in the process of liquidation or otherwise subject to formal or informal regulatory restriction) are assigned ORRs that will generate a significant allowance; and whether collateral and collateral arrangements exist. An estimate of the reinsurance recoverables lifetime expected credit losses is established utilizing a probability of default and loss given default method, which reflects the reinsurer’s ORR rating. The allowance for credit losses excludes disputed amounts. An allowance for disputes is established for a reinsurance recoverable using the losses incurred model for contingencies. The total reinsurance recoverables as of December 31, 2021 were $ 76.3 billion. As of that date, utilizing AIG’s ORRs, (i) approximately 92 percent of the reinsurance recoverables were investment grade, of which 52 percent related to General Insurance and 40 percent related to Life and Retirement; (ii) approximately 7 percent of the reinsurance recoverables were non-investment grade, the majority of which related to General Insurance; (iii) less than one one As of December 31, 2021, approximately 71 percent of our non-investment grade reinsurance exposure related to captive insurers. These arrangements are typically collateralized by letters of credit, funds withheld or trust agreements. Reinsurance Recoverable Allowance The following table presents a rollforward of the reinsurance recoverable allowance: Years Ended December 31, 2021 2020 General Life and General Life and (in millions) Insurance Retirement Total Insurance Retirement Total Balance, beginning of year $ 292 $ 83 $ 375 $ 111 $ 40 $ 151 Initial allowance upon CECL adoption - - - 202 22 224 Addition to (release of) allowance for expected credit losses and disputes, net 6 18 24 ( 12) 21 9 Write-offs charged against the allowance for credit losses and disputes ( 17) - ( 17) ( 9) - ( 9) Balance, end of year $ 281 $ 101 $ 382 $ 292 $ 83 $ 375 There were no material recoveries of credit losses previously written off for the years ended December 31, 2021 and 2020. Past-Due Status We consider a reinsurance asset to be past due when it is 90 days past due. The allowance for credit losses is estimated excluding disputed amounts. An allowance for disputes is established using the losses incurred method for contingencies. Past due balances on claims that are not in dispute were not material for any of the periods presented. |
DEFERRED POLICY ACQUISITION COS
DEFERRED POLICY ACQUISITION COSTS | 12 Months Ended |
Dec. 31, 2021 | |
DEFERRED POLICY ACQUISITION COSTS | |
DEFERRED POLICY ACQUISITION COSTS | 8. Deferred Policy Acquisition Costs DAC represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such deferred policy acquisition costs generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analyzed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts. We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates. Short-duration insurance contracts: Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, generally 12 months. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC. We assess the recoverability of DAC on an annual basis or more frequently if circumstances indicate an impairment may have occurred. This assessment is performed by comparing recorded net unearned premiums and anticipated investment income on in-force business to the sum of expected losses and loss adjustment expenses incurred, unamortized DAC and maintenance costs. If the sum of these costs exceeds the amount of recorded net unearned premiums and anticipated investment income, the excess is recognized as an offset against the asset established for DAC. This offset is referred to as a premium deficiency charge. Increases in expected losses and loss adjustment expenses incurred can have a significant impact on the likelihood and amount of a premium deficiency charge. Long-duration insurance contracts: Policy acquisition costs for participating life, traditional life and accident and health insurance products are generally deferred and amortized, with interest, over the premium paying period. The assumptions used to calculate the benefit liabilities and DAC for these traditional products are set when a policy is issued and do not change with changes in actual experience, unless a loss recognition event occurs. These “locked-in” assumptions include mortality, morbidity, persistency, maintenance expenses and investment returns, and include margins for adverse deviation to reflect uncertainty given that actual experience might deviate from these assumptions. A loss recognition event occurs when there is a shortfall between the carrying amount of future policy benefit liabilities, net of DAC, and what the future policy benefit liabilities, net of DAC, would be when applying updated current assumptions. When we determine a loss recognition event has occurred, we first reduce any DAC related to that block of business through amortization of acquisition expense, and after DAC is depleted, we record additional liabilities through a charge to Policyholder benefits and losses incurred. Groupings for loss recognition testing are consistent with our manner of acquiring, servicing and measuring the profitability of the business and applied by product groupings. We perform separate loss recognition tests for traditional life products, payout annuities and long-term care products. Once loss recognition has been recorded for a block of business, the old assumption set is replaced and the assumption set used for the loss recognition would then be subject to the lock-in principle. Investment-oriented contracts: Certain policy acquisition costs and policy issuance costs related to universal life and investment-type products (collectively, investment-oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts. DAC on investment-oriented contracts were approximately $ 5.8 billion and $ 5.1 billion at December 31, 2021 and 2020, respectively. Estimated gross profits are affected by a number of factors, including levels of current and expected interest rates, net investment income and spreads, net realized gains and losses, fees, surrender rates, mortality experience, policyholder behavior experience and equity market returns and volatility. In each reporting period, current period amortization expense is adjusted to reflect actual gross profits. If the assumptions used for estimating gross profit change significantly, DAC is recalculated using the new assumptions, including actuarial assumptions such as mortality, lapse, benefit utilization, and premium persistency, and any resulting adjustment is included in income. If the new assumptions indicate that future estimated gross profits are higher than previously estimated, DAC will be increased resulting in a decrease in amortization expense and increase in income in the current period; if future estimated gross profits are lower than previously estimated, DAC will be decreased resulting in an increase in amortization expense and decrease in income in the current period. Updating such assumptions may result in acceleration of amortization in some products and deceleration of amortization in other products. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts. To estimate future estimated gross profits for variable annuity products, a long-term annual asset growth assumption is applied to determine the future growth in assets and related asset-based fees. In determining the asset growth rate, the effect of short-term fluctuations in the equity markets is partially mitigated through the use of a “reversion to the mean” methodology whereby short-term asset growth above or below long-term annual rate assumptions impacts the growth assumption applied to the five-year period subsequent to the current balance sheet date. The reversion to the mean methodology allows us to maintain our long-term growth assumptions, while also giving consideration to the effect of actual investment performance. When actual performance significantly deviates from the annual long-term growth assumption, as evidenced by growth assumptions in the five-year reversion to the mean period falling below a certain rate (floor) or rising above a certain rate (cap) for a sustained period, judgment may be applied to revise or “unlock” the growth rate assumptions to be used for both the five-year reversion to the mean period as well as the long-term annual growth assumption applied to subsequent periods. Unrealized Appreciation (Depreciation) of Investments: DAC related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity securities available for sale, with related changes recognized through Other comprehensive income. The adjustment is made at each balance sheet date, as if the securities had been sold at their stated aggregate fair value and the proceeds reinvested at current yields. Similarly, for long-duration traditional insurance contracts, if the assets supporting the liabilities are in a net unrealized gain position at the balance sheet date, loss recognition testing assumptions are updated to exclude such gains from future cash flows by reflecting the impact of reinvestment rates on future yields. If a future loss is anticipated under this basis, any additional shortfall indicated by loss recognition tests is recognized as a reduction in accumulated other comprehensive income. Similar to other loss recognition on long-duration insurance contracts, such shortfall is first reflected as a reduction in DAC and secondly as an increase in liabilities for future policy benefits. The change in these adjustments, net of tax, is included with the change in net unrealized appreciation of investments that is credited or charged directly to Other comprehensive income. Internal Replacements of Long-duration and Investment-oriented Products: For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If the modification does not substantially change the contract, we do not change the accounting and amortization of existing DAC and related actuarial balances. If an internal replacement represents a substantial change, the original contract is considered to be extinguished and any related DAC or other policy balances are charged or credited to income, and any new deferrable costs associated with the replacement contract are deferred. Value of Business Acquired (VOBA): VOBA is determined at the time of acquisition and is reported in the Consolidated Balance Sheets with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For participating life, traditional life and accident and health insurance products, VOBA is amortized over the life of the business in a manner similar to that for DAC based on the assumptions at purchase. For investment-oriented products, VOBA is amortized in relation to estimated gross profits and adjusted for the effect of unrealized gains or losses on fixed maturity securities available for sale in a manner similar to DAC. The following table presents a rollforward of DAC: Years Ended December 31, (in millions) 2021 2020 2019 Balance, beginning of year $ 9,679 $ 10,890 $ 12,256 Acquisition costs deferred 4,666 4,292 5,403 Amortization expense ( 4,562) ( 4,188) ( 4,993) Change related to unrealized appreciation (depreciation) of investments 773 ( 1,116) ( 1,758) Dispositions - ( 298) - Other, including foreign exchange ( 153) 99 ( 18) Balance, end of year (a) $ 10,403 $ 9,679 $ 10,890 (a) Net of cumulative reductions in DAC of $ 2.4 billion, $ 3.1 billion and $ 2.0 billion at December 31, 2021, 2020 and 2019, respectively, related to the effect of net unrealized gains and losses on available for sale securities. The following table presents a rollforward of VOBA: Years Ended December 31, (in millions) 2021 2020 2019 Balance, beginning of year $ 126 $ 317 $ 438 Amortization expense ( 11) ( 23) ( 171) Change related to unrealized appreciation (depreciation) of investments - 20 ( 10) Dispositions - ( 169) - Other, including foreign exchange ( 4) ( 19) 60 Balance, end of year (a) $ 111 $ 126 $ 317 (a) Net of cumulative reductions in VOBA of $ 2 million, $ 2 million and $ 22 million at December 31, 2021, 2020 and 2019, respectively, related to the effect of net unrealized gains and losses on available for sale securities. The percentage of the unamortized balance of VOBA at December 31, 2021 expected to be amortized in 2022 through 2026 by year is: 11.5 percent, 11.5 percent, 9.7 percent, 9.7 percent and 7.1 percent, respectively, with 50.4 percent being amortized after five years. These projections are based on current estimates for investment income and spreads, persistency, mortality and morbidity assumptions. We offer sales inducements which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. Such amounts are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC. To qualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception. We must also demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest and are higher than the contract’s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets, recorded in Other assets, totaled $ 307 million and $ 281 million at December 31, 2021 and 2020, respectively. The amortization expense associated with these assets is reported within Interest credited to policyholder account balances in the Consolidated Statements of Income. Such amortization expense totaled $ 113 million, $ 60 million and $ 79 million for the years ended December 31, 2021, 2020 and 2019, respectively. DAC, VOBA and DSI for insurance-oriented and investment-oriented products are reviewed for recoverability, which involves estimating the future profitability of current business. This review involves significant management judgment. If actual profitability is substantially lower than estimated, AIG’s DAC, VOBA and DSI may be subject to an impairment charge and AIG’s results of operations could be significantly affected in the period the impairment charge is recognized and in future periods. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2021 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 9. Variable Interest Entities A variable interest entity (VIE) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on other criteria discussed below. We enter into various arrangements with VIEs in the normal course of business and consolidate the VIEs when we determine we are the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders. The primary beneficiary is the entity that has both (i) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE. Balance Sheet Classification and Exposure to Loss Creditors or beneficial interest holders of VIEs for which AIG is the primary beneficiary generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to AIG, except in limited circumstances when AIG has provided a guarantee to the VIE’s interest holders. The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Consolidated Balance Sheets: Real Estate and Affordable Investment Securitization Housing (in millions) Entities (d) Vehicles Partnerships Other Total December 31, 2021 Assets: Bonds available for sale $ - $ 5,543 $ - $ - $ 5,543 Other bond securities - 1,852 - - 1,852 Equity securities 223 - - - 223 Mortgage and other loans receivable - 2,523 - - 2,523 Other invested assets Alternative investments (a) 3,017 - - - 3,017 Investment real estate 2,257 - - - 2,257 Short-term investments 487 151 - - 638 Cash 96 - - - 96 Accrued investment income - 17 - - 17 Other assets 190 558 - - 748 Total (b) $ 6,270 $ 10,644 $ - $ - $ 16,914 Liabilities: Debt of consolidated investment entities $ 1,743 $ 4,504 $ - $ - $ 6,247 Other (c) 122 722 - - 844 Total $ 1,865 $ 5,226 $ - $ - $ 7,091 December 31, 2020 Assets: Bonds available for sale $ - $ 6,089 $ - $ - $ 6,089 Other bond securities - 2,367 - - 2,367 Equity securities 507 - - - 507 Mortgage and other loans receivable - 3,135 - - 3,135 Other invested assets Alternative investments (a) 2,689 - - - 2,689 Investment real estate 3,378 - 3,558 - 6,936 Short-term investments 365 1,534 - 27 1,926 Cash 129 - 203 - 332 Accrued investment income - 38 - - 38 Other assets 169 120 243 2 534 Total (b) $ 7,237 $ 13,283 $ 4,004 $ 29 $ 24,553 Liabilities: Debt of consolidated investment entities $ 2,559 $ 3,961 $ 2,287 $ 2 $ 8,809 Other (c) 180 187 187 10 564 Total $ 2,739 $ 4,148 $ 2,474 $ 12 $ 9,373 (a) Comprised primarily of investments in real estate joint ventures at December 31, 2021 and 2020. (b) The assets of each VIE can be used only to settle specific obligations of that VIE. (c) Comprised primarily of Other liabilities at December 31, 2021 and 2020. (d) At December 31, 2021 and 2020, off-balance sheet exposure primarily consisting of our insurance companies’ commitments to real estate and investment entities were $ 2.2 billion and $ 2.4 billion, respectively, of which commitments to external parties were $ 0.6 billion and $ 0.7 billion, respectively. We calculate our maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where we have also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE. AIG entered into six transactions between 2012 and 2014, securitizing portfolios of certain debt securities previously owned by AIG and its affiliates. As part of these transactions, an indirectly wholly-owned subsidiary of AIG was obligated to make capital contributions to these securitization VIEs in the event that the VIE was unable to redeem any rated notes it had in issue on the relevant redemption date. AIG had provided a guarantee to the six securitization VIEs of the obligations of its indirectly wholly-owned subsidiary to make such capital contributions when due. Prior to December 31, 2021, all six transactions were terminated. In aggregate, the termination of these six transactions resulted in a reduction of debt of consolidated investment entities of $ 175 million. There were no amounts paid related to the guarantees provided. The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as well as our maximum exposure to loss associated with these VIEs: Maximum Exposure to Loss Total VIE On-Balance Off-Balance (in millions) Assets Sheet (b) Sheet Total December 31, 2021 Real estate and investment entities (a) $ 457,335 $ 7,650 $ 3,448 (d) $ 11,098 Other 1,738 237 528 (e) 765 Total $ 459,073 $ 7,887 $ 3,976 $ 11,863 December 31, 2020 Real estate and investment entities (a) $ 321,716 $ 6,420 $ 3,273 (d) $ 9,693 Affordable housing partnerships 2,801 368 (c) 4 372 Other 1,733 195 546 (e) 741 Total $ 326,250 $ 6,983 $ 3,823 $ 10,806 (a) Comprised primarily of hedge funds and private equity funds. (b) At December 31, 2021 and 2020, $ 7.8 billion and $ 6.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (c) At December 31, 2020, primarily included alternative equity investments of $ 257 million and other loans receivables of $ 97 million. (d) These amounts represent our unfunded commitments to invest in private equity funds and hedge funds. (e) These amounts represent our estimate of the maximum exposure to loss under certain insurance policies issued to VIEs if a hypothetical loss occurred to the extent of the full amount of the insured value. Our insurance policies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet. Real Estate and Investment Entities Through our insurance operations and AIG Global Real Estate Investment Corp., we are an investor in various real estate investment entities, some of which are VIEs. These investments are typically with unaffiliated third-party developers via a partnership or limited liability company structure. The VIEs’ activities consist of the development or redevelopment of commercial, industrial and residential real estate. Our involvement varies from being a passive equity investor or finance provider to actively managing the activities of the VIEs. Our insurance operations participate as passive investors in the equity issued by certain third-party-managed hedge and private equity funds that are VIEs. Our insurance operations typically are not involved in the design or establishment of these VIEs, nor do they actively participate in the management of the VIEs. Securitization AND REPACKAGING Vehicles We created certain VIEs that hold investments, primarily in investment-grade debt securities and loans, and issued beneficial interests in these investments. Some of these VIEs were created to facilitate our purchase of asset-backed securities. In these situations, all of the beneficial interests are owned by our insurance operations and are consolidated by AIG. In other instances, we have created VIEs that are securitizations of residential mortgage loans or other forms of collateralized loan obligations or repackage loan and other assets into pass-through securities. Our insurance subsidiaries own some of the beneficial interests of these VIEs, and we maintain the power to direct the activities of the VIEs that most significantly impact their economic performance. Accordingly, we consolidate these entities and those beneficial interests issued to third parties are reported as debt of consolidated investment entities. This debt is non-recourse to AIG. Affordable Housing Partnerships SAAHP organized and invested in limited partnerships that develop and operate affordable housing qualifying for federal, state, and historic tax credits, in addition to a few market rate properties across the United States. The operating partnerships are VIEs, whose debt is generally non-recourse in nature, and the general partners of which are mostly unaffiliated third-party developers. Until their sale in December 2021, we accounted for our investments in operating partnerships using the equity method of accounting, unless they are required to be consolidated. We consolidated an operating partnership if the general partner is an affiliated entity or we otherwise have the power to direct activities that most significantly impact the entities’ economic performance. The pre-tax income of SAAHP was reported as a component of the Life and Retirement segment. In December 2021, AIG completed the sale of a U.S. affordable housing portfolio to Blackstone Real Estate Income Trust. For additional information on the sale of AIG’s interests in a U.S. affordable housing portfolio, see Note 1. RMBS, CMBS, Other ABS and CDOs Primarily through our insurance operations, we are a passive investor in RMBS, CMBS, other ABS and CDOs, the majority of which are issued by domestic special purpose entities. We generally do not sponsor or transfer assets to, or act as the servicer to these asset-backed structures, and were not involved in the design of these entities. Our maximum exposure in these types of structures is limited to our investment in securities issued by these entities. Based on the nature of our investments and our passive involvement in these types of structures, we have determined that we are not the primary beneficiary of these entities. We have not included these entities in the above tables; however, the fair values of our investments in these structures are reported in Notes 4 and 5 herein. |
DERIVATIVES AND HEDGE ACCOUNTIN
DERIVATIVES AND HEDGE ACCOUNTING | 12 Months Ended |
Dec. 31, 2021 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
DERIVATIVES AND HEDGE ACCOUNTING | 10. Derivatives and Hedge Accounting We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with embedded derivatives contained in insurance contract liabilities, fixed maturity securities, outstanding medium- and long-term notes as well as other interest rate sensitive assets and liabilities. Foreign exchange derivatives (principally foreign exchange forwards and swaps) are used to economically mitigate risk associated with non-U.S. dollar denominated debt, net capital exposures, foreign currency transactions, and foreign denominated investments. Equity derivatives are used to mitigate financial risk embedded in certain insurance liabilities and economically hedge certain investments. We use credit derivatives to manage our credit exposures. Commodity derivatives are used to hedge exposures within reinsurance contracts. The derivatives are effective economic hedges of the exposures that they are meant to offset. In addition to hedging activities, we also enter into derivative contracts with respect to investment operations, which may include, among other things, CDSs, total return swaps and purchases of investments with embedded derivatives, such as equity-linked notes and convertible bonds. Interest rate, currency, equity and commodity swaps, credit contracts, swaptions, options and forward transactions are accounted for as derivatives, recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. Aggregate asset or liability positions are netted on the Consolidated Balance Sheets only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty. Cash collateral posted with counterparties in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset. Derivatives, with the exception of embedded derivatives, are reported at fair value in the Consolidated Balance Sheets in Other assets and Other liabilities. Embedded derivatives are generally presented with the host contract in the Consolidated Balance Sheets. A bifurcated embedded derivative is measured at fair value and accounted for in the same manner as a free standing derivative contract. The corresponding host contract is accounted for according to the accounting guidance applicable for that instrument. For additional information on embedded derivatives see Notes 4 and 13. The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Consolidated Balance Sheets: December 31, 2021 December 31, 2020 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Notional Fair Notional Fair Notional Fair Notional Fair (in millions) Amount Value Amount Value Amount Value Amount Value Derivatives designated as hedging instruments: (a) Interest rate contracts $ 265 $ 5 $ 895 $ 11 $ 815 $ 16 $ 356 $ 11 Foreign exchange contracts 5,431 467 5,828 197 3,468 256 7,424 379 Derivatives not designated as hedging instruments: (a) Interest rate contracts 47,499 3,868 42,113 3,622 62,259 4,621 48,732 4,425 Foreign exchange contracts 7,905 722 9,997 524 9,518 766 12,860 711 Equity contracts 27,423 681 5,091 53 22,924 1,130 7,076 223 Commodity contracts 303 4 219 - - - - - Credit contracts (b) 3,790 1 936 47 5,797 2 969 67 Other contracts (c) 43,892 13 51 - 43,441 14 54 6 Total derivatives, gross $ 136,508 $ 5,761 $ 65,130 $ 4,454 $ 148,222 $ 6,805 $ 77,471 $ 5,822 Counterparty netting (d) ( 2,779) ( 2,779) ( 3,812) ( 3,812) Cash collateral (e) ( 2,139) ( 1,089) ( 2,219) ( 1,441) Total derivatives on Consolidated Balance Sheets (f) $ 843 $ 586 $ 774 $ 569 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b) As of December 31, 2021 and 2020, included CDSs on super senior multi-sector CDOs with a net notional amount of $ 97 million and $ 137 million (fair value liability of $ 30 million and $ 44 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 zero at both December 31, 2021 and December 31, 2020. Fair value of liabilities related to bifurcated embedded derivatives was $ 14.5 billion and $ 15.8 billion, respectively, at December 31, 2021 and December 31, 2020. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in variable annuity products, which include equity and interest rate components, and the funds withheld arrangement with Fortitude Re. For additional information see Note 7 Collateral We engage in derivative transactions that are not subject to a clearing requirement directly with unaffiliated third parties, in most cases, under International Swaps and Derivatives Association, Inc. (ISDA) Master Agreements. Many of the ISDA Master Agreements also include Credit Support Annex provisions, which provide for collateral postings that may vary at various ratings and threshold levels. We attempt to reduce our risk with certain counterparties by entering into agreements that enable collateral to be obtained from a counterparty on an upfront or contingent basis. We minimize the risk that counterparties might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and generally requiring additional collateral to be posted upon the occurrence of certain events or circumstances. In addition, certain derivative transactions have provisions that require collateral to be posted by us upon a downgrade of our long-term debt ratings or give the counterparty the right to terminate the transaction. In the case of some of the derivative transactions, upon a downgrade of our long-term debt ratings, as an alternative to posting collateral and subject to certain conditions, we may assign the transaction to an obligor with higher debt ratings or arrange for a substitute guarantee of our obligations by an obligor with higher debt ratings or take other similar action. The actual amount of collateral required to be posted to counterparties in the event of such downgrades, or the aggregate amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. Collateral posted by us to third parties for derivative transactions was $ 2.7 billion and $ 3.0 billion at December 31, 2021 and 2020, respectively. In the case of collateral posted under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties. Collateral provided to us from third parties for derivative transactions was $ 2.4 billion and $ 2.3 billion at December 31, 2021 and 2020, respectively. In the case of collateral provided to us under derivative transactions that are not subject to clearing, we generally can repledge or resell collateral. Offsetting We have elected to present all derivative receivables and derivative payables, and the related cash collateral received and paid, on a net basis on our Consolidated Balance Sheets when a legally enforceable ISDA Master Agreement exists between us and our derivative counterparty. An ISDA Master Agreement is an agreement governing multiple derivative transactions between two counterparties. The ISDA Master Agreement generally provides for the net settlement of all, or a specified group, of these derivative transactions, as well as transferred collateral, through a single payment, and in a single currency, as applicable. The net settlement provisions apply in the event of a default on, or affecting any, one derivative transaction or a termination event affecting all, or a specified group of, derivative transactions governed by the ISDA Master Agreement. Hedge Accounting We designated certain derivatives entered into with third parties as fair value hedges of available for sale investment securities held by our insurance subsidiaries. The fair value hedges include foreign currency forwards and cross currency swaps designated as hedges of the change in fair value of foreign currency denominated available for sale securities attributable to changes in foreign exchange rates. We also designated certain interest rate swaps entered into with third parties as fair value hedges of fixed rate GICs attributable to changes in benchmark interest rates. We use foreign currency denominated debt and cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non-U.S. dollar functional currency foreign subsidiaries. For net investment hedge relationships where issued debt is used as a hedging instrument, we assess the hedge effectiveness and measure the amount of ineffectiveness based on changes in spot rates. For net investment hedge relationships that use derivatives as hedging instruments, we assess hedge effectiveness and measure hedge ineffectiveness using changes in forward rates. For the years ended December 31, 2021, 2020 and 2019, we recognized gains (losses) of $ 201 million, $( 128) million and $ 116 million, respectively, included in Change in foreign currency translation adjustments in Other comprehensive income (loss) related to the net investment hedge relationships. A qualitative methodology is utilized to assess hedge effectiveness for net investment hedges, while regression analysis is employed for all other hedges. The following table presents the gain (loss) recognized in income on our derivative instruments in fair value hedging relationships in the Consolidated Statements of Income (Loss): Gains/(Losses) Recognized in Income for: Hedging Excluded Hedged (in millions) Derivatives (a) Components (b) Items Net Impact Year ended December 31, 2021 Interest rate contracts : Interest credited to policyholder account balances $ ( 19) $ - $ 17 $ ( 2) Net investment income 9 - ( 11) ( 2) Foreign exchange contracts : Net realized gains/(losses) 210 139 ( 210) 139 Year ended December 31, 2020 Interest rate contracts : Interest credited to policyholder account balances $ 14 $ - $ ( 14) $ - Net investment income ( 6) - 5 ( 1) Foreign exchange contracts : Net realized gains/(losses) ( 422) 49 422 49 Year ended December 31, 2019 Interest rate contracts : Interest credited to policyholder account balances $ 16 $ - $ ( 16) $ - Net investment income ( 1) - 1 - Foreign exchange contracts : Net realized gains/(losses) ( 31) 91 31 91 (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 Consolidated Statements of Income (Loss): Years Ended December 31, Gains (Losses) Recognized in Income (in millions) 2021 2020 2019 By Derivative Type: Interest rate contracts $ ( 573) $ 1,451 $ 1,319 Foreign exchange contracts 278 ( 389) ( 25) Equity contracts ( 736) 211 ( 316) Commodity contracts ( 9) - - Credit contracts ( 12) 52 61 Other contracts 64 61 64 Embedded derivatives 623 ( 4,722) ( 1,464) Total $ ( 365) $ ( 3,336) $ ( 361) By Classification: Policy fees $ 61 $ 62 $ 68 Net investment income 5 ( 8) ( 125) Net realized gains (losses) - excluding Fortitude Re funds withheld assets 148 ( 508) ( 316) Net realized losses on Fortitude Re funds withheld assets (a) ( 575) ( 2,894) - Policyholder benefits and claims incurred ( 4) 12 12 Total $ ( 365) $ ( 3,336) $ ( 361) (a) 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. Credit Risk-Related Contingent Features We estimate that at December 31, 2021, based on our outstanding financial derivative transactions, a downgrade of our long-term senior debt ratings to BBB or BBB– by Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc., and/or a downgrade to Baa2 or Baa3 by Moody’s Investors’ Service, Inc. would permit counterparties to make additional collateral calls and permit certain counterparties to elect early termination of contracts, resulting in corresponding collateral postings and termination payments in the total amount of up to approximately $ 41 million. The aggregate fair value of our derivatives that were in a net liability position and that contain such credit risk-related contingencies which can be triggered below our long-term senior debt ratings of BBB+ or Baa1 was approximately $ 206 million and $ 257 million at December 31, 2021 and 2020, respectively. The aggregate fair value of assets posted as collateral under these contracts at December 31, 2021 and 2020, was approximately $ 239 million and $ 306 million, respectively. Hybrid Securities with Embedded Credit Derivatives We invest in hybrid securities (such as credit-linked notes) with the intent of generating income and not specifically to acquire exposure to embedded derivative risk. As is the case with our other investments in RMBS, CMBS, CDOs and ABS, our investments in these hybrid securities are exposed to losses only up to the amount of our initial investment in the hybrid security. Other than our initial investment in the hybrid securities, we have no further obligation to make payments on the embedded credit derivatives in the related hybrid securities. We elect to account for our investments in these hybrid securities with embedded written credit derivatives at fair value, with changes in fair value recognized in Net investment income and Other income. Our investments in these hybrid securities are reported as Other bond securities in the Consolidated Balance Sheets. The fair values of these hybrid securities were $ 2.0 billion and $ 2.4 billion at December 31, 2021 and 2020, respectively. These securities have par amounts of $ 4.6 billion and $ 5.0 billion at December 31, 2021 and 2020, respectively, and have remaining stated maturity dates that extend to 2052. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 11. Goodwill and Other Intangible Assets Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is tested for impairment at the reporting unit level, which is defined as an operating segment or one level below, and the test is performed annually, or more frequently if circumstances indicate an impairment may have occurred. At December 31, 2021, goodwill is reported within our General Insurance business – North America and International operating segments, our Life and Retirement business – Life Insurance operating segment and our Other Operations segment. When a business is transferred from one reporting unit to another, goodwill from the original reporting unit is allocated among reporting units based on the fair value of business transferred, relative to business retained by a reporting unit. The impairment assessment involves an option to first assess qualitative factors to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not performed, or after assessing the totality of the events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative assessment for potential impairment is performed. If the qualitative test is not performed or if the test indicates a potential impairment is present, we estimate the fair value of each reporting unit and compare the estimated fair value with the carrying amount of the reporting unit, including allocated goodwill. The estimate of a reporting unit’s fair value involves management judgment and is based on one or a combination of approaches including discounted expected future cash flows, market-based earnings multiples of the unit’s peer companies, external appraisals or, in the case of reporting units being considered for sale, third-party indications of fair value, if available. We consider one or more of these estimates when determining the fair value of a reporting unit to be used in the impairment test. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill is not impaired. If the carrying value of a reporting unit exceeds its estimated fair value, goodwill associated with that reporting unit potentially is impaired. The amount of impairment, if any, is measured as the excess of a reporting unit’s carrying amount over its fair value not to exceed the total amount of goodwill allocated to that reporting unit and recognized in income. The following table presents the changes in goodwill by operating segment: General Insurance North Life Other (in millions) America International Insurance Operations Total Balance at January 1, 2019: Goodwill - gross $ 3,793 $ 3,378 $ 311 $ 77 $ 7,559 Accumulated impairments ( 1,145) ( 2,255) ( 67) ( 10) ( 3,477) Net goodwill 2,648 1,123 244 67 4,082 Increase (decrease) due to: Acquisitions - 20 - - 20 Other (a) - 26 ( 77) ( 13) ( 64) Balance at December 31, 2019: Goodwill - gross 3,793 3,424 234 64 7,515 Accumulated impairments ( 1,145) ( 2,255) ( 67) ( 10) ( 3,477) Net goodwill 2,648 1,169 167 54 4,038 Increase (decrease) due to: Dispositions ( 2) - - ( 4) ( 6) Other - 32 10 - 42 Balance at December 31, 2020: Goodwill - gross 3,791 3,456 244 60 7,551 Accumulated impairments ( 1,145) ( 2,255) ( 67) ( 10) ( 3,477) Net goodwill 2,646 1,201 177 50 4,074 Increase (decrease) due to: Other - ( 13) ( 5) - ( 18) Balance at December 31, 2021: Goodwill - gross 3,791 3,443 239 60 7,533 Accumulated impairments ( 1,145) ( 2,255) ( 67) ( 10) ( 3,477) Net goodwill $ 2,646 $ 1,188 $ 172 $ 50 $ 4,056 (a) Reflects $ 98 million of goodwill reclassified to assets held for sale. Indefinite lived intangible assets are not subject to amortization. Indefinite lived intangible assets primarily include Lloyd’s syndicate capacity and brand names. Finite lived intangible assets are amortized over their useful lives. Finite lived intangible assets primarily include distribution networks and are recorded net of accumulated amortization. The Company tests intangible assets for impairment on an annual basis or whenever events or circumstances suggest that the carrying value of an intangible asset may exceed the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If this condition exists and the carrying value of an intangible asset exceeds its fair value, the excess is recognized as an impairment and is recorded as a charge against net income (loss). The Other intangible assets and Value of distribution network acquired (VODA) resulted primarily from the acquisition of Validus. The following table presents the changes in other intangible assets and the VODA by operating segment: General Insurance North Life Other (in millions) America International Insurance Operations Total Other intangible assets Balance at January 1, 2019 $ 86 $ 212 $ 46 $ 16 $ 360 Increase (decrease) due to: Amortization ( 1) ( 1) ( 4) ( 2) ( 8) Other ( 3) - ( 18) 2 ( 19) Balance at December 31, 2019 $ 82 $ 211 $ 24 $ 16 $ 333 Increase (decrease) due to: Dispositions - - - ( 4) ( 4) Amortization ( 2) ( 1) ( 4) ( 2) ( 9) Other ( 1) - 2 ( 2) ( 1) Balance at December 31, 2020 $ 79 $ 210 $ 22 $ 8 $ 319 Increase (decrease) due to: Amortization ( 2) - ( 4) ( 2) ( 8) Other ( 10) ( 1) ( 1) 1 ( 11) Balance at December 31, 2021 $ 67 $ 209 $ 17 $ 7 $ 300 Value of distribution network acquired Balance at January 1, 2019 $ - $ - $ - $ 569 $ 569 Increase (decrease) due to: Amortization - - - ( 39) ( 39) Other - - - 6 6 Balance at December 31, 2019 $ - $ - $ - $ 536 $ 536 Increase (decrease) due to: Amortization - - - ( 40) ( 40) Other - - - 1 1 Balance at December 31, 2020 $ - $ - $ - $ 497 $ 497 Increase (decrease) due to: Amortization - - - ( 40) ( 40) Other - - - 1 1 Balance at December 31, 2021 $ - $ - $ - $ 458 $ 458 The percentage of the unamortized balance of Other intangible assets and VODA at December 31, 2021 expected to be amortized in 2022 through 2026 by year is 9.9 percent, 9.7 percent, 9.4 percent, 9.2 percent and 8.4 percent, respectively, with 53.4 percent being amortized after five years. |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
INSURANCE LIABILITIES | |
INSURANCE LIABILITIES | 12. Insurance Liabilities Liability for Unpaid Losses and Loss Adjustment Expenses (Loss Reserves) Loss reserves represent the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and loss adjustment expenses, less applicable discount. We regularly review and update the methods used to determine loss reserve estimates. Any adjustments resulting from this review are reflected currently in pre-tax income, except to the extent such adjustment impacts a deferred gain under a retroactive reinsurance agreement, in which case the ceded portion would be amortized into pre-tax income in subsequent periods. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be recognized and confirmed. Given the uncertainties around the impact from the COVID-19 pandemic, including the significant global economic slowdown, the full impact of COVID-19 and how it may ultimately impact the results of our insurance operations remains uncertain. In addition, in response to the pandemic, new governmental, legislative and regulatory initiatives have been put in place and continue to be developed that could result in additional restrictions and requirements relating to our policies that may have a negative impact on our business operations. We have recorded our estimate of the ultimate liability for losses that have occurred as of the balance sheet date associated with COVID-19 which reflects our expectations given the current facts and circumstances. We will continue to monitor and review the impact. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as favorable development. Our gross loss reserves before reinsurance and discount are net of contractual deductible recoverable amounts due from policyholders of approximately $ 12.3 billion and $ 12.6 billion at December 31, 2021 and 2020, respectively. These recoverable amounts are related to certain policies with high deductibles (in excess of high dollar amounts retained by the insured through self-insured retentions, deductibles, retrospective programs, or captive arrangements, each referred to generically as “deductibles”), primarily for U.S. Commercial casualty business. With respect to the deductible portion of the claim, we manage and pay the entire claim on behalf of the insured and are reimbursed by the insured for the deductible portion of the claim. Thus, these recoverable amounts represent a credit exposure to us. At December 31, 2021 and 2020, we held collateral of approximately $ 8.6 billion and $ 9.2 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements. Allowance for credit losses for the unsecured portion of these recoverable amounts was $ 14 million at both December 31, 2021 and 2020. The following table presents the rollforward of activity in Loss Reserves: Years Ended December 31, (in millions) 2021 2020 2019 Liability for unpaid loss and loss adjustment expenses, beginning of year $ 77,720 $ 78,328 $ 83,639 Reinsurance recoverable ( 34,431) ( 31,069) ( 31,690) Initial allowance upon CECL adoption - 164 - Net Liability for unpaid loss and loss adjustment expenses, beginning of year 43,289 47,423 51,949 Losses and loss adjustment expenses incurred: Current year 16,434 16,928 17,596 Prior years, excluding discount and amortization of deferred gain ( 171) ( 90) ( 340) Prior years, discount charge (benefit) ( 131) 587 1,063 Prior years, amortization of deferred gain on retroactive reinsurance (a) ( 190) ( 237) ( 219) Total losses and loss adjustment expenses incurred 15,942 17,188 18,100 Losses and loss adjustment expenses paid: Current year ( 3,868) ( 4,062) ( 4,894) Prior years ( 11,503) ( 14,603) ( 18,020) Total losses and loss adjustment expenses paid ( 15,371) ( 18,665) ( 22,914) Other changes: Foreign exchange effect ( 593) 815 ( 6) Allowance for credit losses - ( 15) - Retroactive reinsurance adjustment (net of discount) (b) 546 361 130 Fortitude sale (c) - ( 3,818) - Total other changes ( 47) ( 2,657) 124 Liability for unpaid loss and loss adjustment expenses, end of year: Net liability for unpaid losses and loss adjustment expenses 43,813 43,289 47,259 Reinsurance recoverable 35,213 34,431 31,069 Total $ 79,026 $ 77,720 $ 78,328 (a) Includes $ 53 million, $ 41 million and $ 27 million for the retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the year ended December 31, 2021, 2020 and 2019, respectively. (b) Includes benefit (charge) from change in discount on retroactive reinsurance in the amount of $( 42) million, $ 340 million and $ 469 million for the periods ended December 31, 2021, 2020 and 2019, respectively. (c) On June 2, 2020, AIG completed the Majority Interest Fortitude Sale. Concurrent with the Majority Interest Fortitude Sale, AIG established a reinsurance recoverable. For additional information see Note 1. The following table presents the reconciliation of the net liability for unpaid losses and loss adjustment expenses in the following tables to Loss Reserves in the Consolidated Balance Sheets for the year ended December 31, 2021: Net liability for unpaid losses Reinsurance recoverable on Gross liability and loss adjustment expenses unpaid losses and loss for unpaid as presented in the adjustment expenses included in losses and loss (in millions) disaggregated tables below the disaggregated tables below adjustment expenses U.S. Workers' Compensation (before discount) $ 4,158 $ 6,169 $ 10,327 U.S. Excess Casualty 3,850 4,195 8,045 U.S. Other Casualty 3,805 4,191 7,996 U.S. Financial Lines 5,356 1,893 7,249 U.S. Property and Special Risks 6,615 3,587 10,202 U.S. Personal Insurance 1,001 2,198 3,199 UK/Europe Casualty and Financial lines 7,175 1,603 8,778 UK/Europe Property and Special Risks 2,631 1,492 4,123 UK/Europe and Japan Personal Insurance 1,962 608 2,570 Total $ 36,553 $ 25,936 $ 62,489 Reconciling Items Discount on workers' compensation lines ( 1,829) Other product lines * 15,561 Unallocated loss adjustment expenses 2,805 Total Loss Reserves $ 79,026 * Reinsurance recoverable for other product lines of $ 9.1 billion resulted in a net liability for unpaid losses and loss adjustment expenses of $ 6.5 billion for the year ended December 31, 2021. Prior Year Development In the sections below, we provide details by coverage group regarding incurred losses, reserve balances and prior year development. The first table below shows prior year development by coverage group, the first two columns of which will again be presented in the coverage group sections that follow. After this table we describe historical drivers of prior year development as well as actuarial methods and relevant terminology. The following coverage group sections present the undiscounted incurred losses and allocated loss adjustment expenses by accident year on a net basis after reinsurance, with separate presentation of the adverse development cover where applicable, excluding related amortization of the deferred gain. Each section also contains details on drivers of prior year development and a description of our reserving process and methodology. Finally, we show a table of claims payout patterns by coverage. The following table presents the reconciliation of net prior year development before the adverse development reinsurance agreement (ADC) cessions from the tables below to the net prior year development after ADC cessions and amortization of deferred gain for the year ended December 31, 2021: Prior Year Prior Year Prior Year Development Development Development Net of External Net of External Amortization After Reinsurance Reinsurance Re-Attribution of Deferred Amortization Before ADC After ADC of ADC Gain at and (in millions) Cessions Cessions (a) Recovery (b) Inception Re-Attribution U.S. Workers' Compensation $ ( 617) $ ( 403) $ 80 $ ( 60) $ ( 383) U.S. Excess Casualty 51 81 ( 40) ( 46) ( 5) U.S. Other Casualty ( 1) 74 ( 23) ( 44) 7 U.S. Financial Lines 649 564 ( 12) ( 31) 521 U.S. Property and Special Risks 172 204 ( 5) ( 10) 189 U.S. Personal Insurance ( 412) ( 411) - ( 2) ( 413) UK/Europe Casualty and Financial lines 210 210 - - 210 UK/Europe Property and Special Risks ( 118) ( 118) - - ( 118) UK/Europe and Japan Personal Insurance ( 173) ( 173) - - ( 173) Other Operations Run-Off 86 86 - - 86 Other product lines ( 18) ( 36) - - ( 36) Subtotal, adjusted pre-tax basis $ ( 171) $ 78 $ - $ ( 193) $ ( 115) Remove impact of Retroactive Reinsurance Amortization of deferred gain at inception 193 Prior year development ceded under the Asbestos LPT - Prior year development ceded under the ADC ( 249) Total, prior years, excluding discount and amortization of deferred gain $ ( 171) (a) Change in net ultimate loss and loss adjustment expenses excludes the portion of prior year development we have ceded under the Asbestos Loss Portfolio Transfer (LPT) and the ADC, both of which are provided by NICO and are considered retroactive reinsurance under U.S. GAAP. (b) Reattribution of the ADC recovery takes place annually as we model the future payments on the subject reserves covered by the ADC to determine when the aggregate payments will exceed the attachment. ADC recoverables are then reallocated by line based on payments expected to be made after attachment point is exceeded. During 2021, we recognized favorable prior year loss reserve development of $ 171 million excluding discount and amortization of deferred gain. The development was primarily driven by: Favorable development on U.S. Workers’ Compensation business where we see continued favorable loss development; Favorable development in Personal Lines driven by subrogation recoveries from catastrophe events; Favorable development on Europe and Japan Personal Insurance driven by favorable accident and health and personal auto experience; Favorable development on Property and Special Risks driven by UK and Europe specialty business; Unfavorable development in U.S. Financial Lines, notably Directors & Officers (D&O), Employers Liability (EPLI) and Cyber coverages; Unfavorable development on Casualty and Financial Lines in Europe and UK; Unfavorable development in Property, Specialty, and other miscellaneous coverages largely driven by reductions in reinsurance recoveries due to changes in catastrophe loss estimates; and Marginally unfavorable development in excess casualty and medical malpractice coverages, partially offset by favorable development in primary general liability. During 2020, we recognized favorable prior year loss reserve development of $ 90 million excluding discount and amortization of deferred gain. The development was primarily driven by: Favorable development on U.S. Workers’ Compensation business, both guaranteed cost business and large deductible, where we reacted to favorable loss trends in recent accident years; Favorable development across the combination of primary and excess casualty coverages; Favorable development in Property, Specialty, and other miscellaneous coverages; Unfavorable development in U.S. Financial Lines, notably D&O, EPLI, Mergers and Acquisitions, Cyber and Non-Medical Professional Errors & Omissions business where we reacted to increasing frequency and severity in recent accident years; Unfavorable development in Personal Lines where we reacted to adverse development in Homeowners and Umbrella; Unfavorable development on Financial Lines driven by low frequency and high severity seen in D&O, especially in UK/Europe and Australia; Favorable development on Property and Special Risks globally driven by UK/Europe; and Favorable development on Europe and Japan Personal Insurance driven by favorable frequency and severity trends. During 2019, we recognized favorable prior year loss reserve development of $ 340 million excluding discount and amortization of deferred gain. The development was primarily driven by: Favorable development on U.S. Workers’ Compensation business, both guaranteed cost business and large deductible and Defense Base Act business (covering government contractors serving at military bases overseas) where we reacted to favorable loss trends in recent accident years; Favorable development on 2017 Hurricanes (Harvey, Irma and Maria) and favorable development due to 2017 California wildfire subrogation recoverables in Commercial Property and Personal Lines. Unfavorable development in Primary General Liability where we reacted to adverse frequency and severity trends especially in Construction Wrap business in recent accident years. Unfavorable development in U.S. Financial Lines, notably D&O, EPLI and Non-Medical Professional Errors & Omissions business where we reacted to increasing frequency and severity in recent accident years. Unfavorable development on European Casualty & Financial Lines, notably Commercial Auto, Employers Liability, Directors & Officers, and Financial Institutions business; and Favorable development on Europe Property and Special Risks, Europe and Japan Personal Insurance and Other product lines. Our analyses and conclusions about prior year reserves also help inform our judgments about the current accident year loss and loss adjustment expense ratios we selected. Loss Development Information The following is information about incurred and paid loss developments as of December 31, 2021, net of reinsurance. The cumulative number of reported claims, the total of IBNR liabilities and expected development on reported loss included within the net incurred loss amounts are presented in the following section. Reserving Methodology We use a combination of methods to project ultimate losses for both long-tail and short-tail exposures, which include: Paid Development method: The Paid Development method estimates ultimate losses by reviewing paid loss patterns and selecting paid ultimate loss development factors. These factors are then applied to paid losses by applying them to accident years, with further expected changes in paid loss. Since the method does not rely on case reserves, it is not directly influenced by changes in the adequacy of case reserves. Incurred Development method: The Incurred Development method is similar to the Paid Development method, but it uses case incurred losses instead of paid losses. Since this method uses more data (case reserves in addition to paid losses) than the Paid Development method, the incurred development patterns may be less variable than paid development patterns. Expected Loss Ratio method: The Expected Loss Ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year. This method may be useful if loss development patterns are inconsistent, losses emerge very slowly, or there is relatively little loss history from which to estimate future losses. Bornhuetter-Ferguson method: The Bornhuetter-Ferguson method using premiums and paid losses is a combination of the Paid Development method and the Expected Loss Ratio method where the weight given to each method is the reciprocal of the loss development factor. This method normally determines expected loss ratios similar to the method used for the Expected Loss Ratio method. The Bornhuetter-Ferguson method using premiums and incurred losses is similar to the Bornhuetter-Ferguson method using premiums and paid losses except that it uses case-incurred losses. Cape Cod method: The Cape Cod method is mechanically similar to the Bornhuetter-Ferguson method with the difference being that the Expected Loss Ratio estimates are determined based on a weighting of the loss estimates that come from the Paid/Incurred Development Methods. This method may be more responsive to recent loss trends than the Bornhuetter-Ferguson method. Average Loss method: The Average Loss method multiplies a projected number of ultimate claims by an estimated ultimate severity average loss for each accident year to produce ultimate loss estimates. Since projections of the ultimate number of claims are often less variable than projections of ultimate loss, this method can provide more reliable results for reserve categories where loss development patterns are inconsistent or too variable to be relied on exclusively. In updating our loss reserve estimates, we consider and evaluate inputs from many sources, including actual claims data, the performance of prior reserve estimates, observed industry trends, our internal peer review processes, including challenges and recommendations from our Enterprise Risk Management group, as well as the views of third-party actuarial firms. We use these inputs to improve our evaluation techniques, and to analyze and assess the change in estimated ultimate loss for each accident year by product line. Our analyses produce a range of indications from various methods, from which we select our best estimate. In determining the actual carried loss reserves, we consider both the internal actuarial best estimate and numerous other internal and external factors, including: an assessment of economic conditions, including real GDP growth, inflation, employment rates or unemployment duration, stock market volatility and changes in corporate bond spreads; changes in the legal, regulatory, judicial and social environment, including changes in road safety, public health and cleanup standards; changes in medical cost trends (inflation, intensity and utilization of medical services) and wage inflation trends; underlying policy pricing, terms and conditions including attachment points and policy limits; change in claims handling philosophy, operating model, processes, and related ongoing enhancements; third-party claims reviews that are periodically performed for key classes of claims such as toxic tort, environmental and other complex casualty claims; third-party actuarial reviews that are periodically performed for key classes of business; input from underwriters on pricing, terms, and conditions and market trends; and changes in our reinsurance program, pricing and commutations. The following factors are relevant to the loss development information included in the tables below: Table organization: The tables are organized by accident year and include policies written on an occurrence and claims- made basis. We note that for certain categories of claims (e.g., construction defect claims and environmental claims) and for reinsurance recoverable, losses may sometimes be reclassified to an earlier or later accident year as more information about the date of occurrence becomes available to us. These reclassifications are shown as development in the respective years in the tables below. Financial Lines business is primarily written on a claims-made basis, while the majority of the workers’ compensation, excess casualty, other casualty, and run-off property and casualty lines of business are written on an occurrence basis. Primarily, all short-tail lines in Property and Special Risks and Personal Insurance are written on an occurrence basis. Groupings: We believe our groupings have homogenous risk characteristics with similar development patterns and would generally be subject to similar trends and reflect our reportable segments. The incurred losses and loss adjustment expenses and paid losses in the following tables for the current reporting year are allocated to the line of business and accident years based on how the business is coded by profit center and line of business. Reinsurance: Our reinsurance program varies by exposure type. Historically we have leveraged facultative and treaty reinsurance, both on a pro-rata and excess of loss basis. Our reinsurance program may change from year to year, which may affect the comparability of the data presented in our tables. Adverse development reinsurance agreement: We have provided the impact of the ADC in an additional table below our Incurred Losses and Allocated Loss Adjustment Expenses (ALAE) tables. The impact of the ADC is shown beginning in 2016 given the retroactive date of the contract and coincides with the effective date of the contract. For the lines of business covered by the agreement (U.S. Workers' Compensation, U.S. Excess Casualty, U.S. Other Casualty, U.S. Financial Lines, U.S. Property and Special Risks and U.S. Personal Insurance or collectively, the Covered Lines), an attribution of the loss recoveries to the line of business by calendar year and accident year is performed based on the underlying distribution of the losses subject to the agreement. Specifically, the future claim payments for all subject incurred losses were projected into future years based on the same actuarial assumptions underlying the related reserves. T he additional table presented after discussion of prior year development by line of business reconciles the changes in net ultimates to our overall prior year development and provides the reattribution of loss recoveries for the Covered Lines. The reinsurance terms of the ADC were then used to identify the future claims payments for which 80% will be reimbursed by NICO. At each reporting period, the attribution of the ADC recoveries is performed. The factors that could cause the attribution to lines of business and accident year to change include changes in underlying actuarial assumptions as to timing and amount of future claim payments. Incurred but not reported liabilities (IBNR): We include development from past reported losses in IBNR. Data excluded from tables: Information with respect to accident years older than ten years is excluded from the development tables. Unallocated loss adjustment expenses are also excluded. Foreign exchange: The loss development for operations outside of the U.S. is presented for all accident years using the current exchange rate at December 31, 2021. Although this approach requires restating all prior accident year information, the changes in exchange rates do not impact incurred and paid loss development trends. Acquisitions: We include acquisitions from all accident years presented in the tables. For purposes of this disclosure, we have applied the retrospective method for the acquired reserves, including incurred and paid claim development histories throughout the relevant tables. It should be noted that historical reserves for the acquired businesses were established by the acquired companies using methods, assumptions and procedures then in effect which may differ from our current reserving bases. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on the aggregated historical results shown in the triangles. Dispositions: We exclude dispositions from all accident years presented in the tables. Claim counts: We consider a reported claim to be one claim for each claimant or feature for each loss occurrence. Claims relating to losses that are 100 percent reinsured are excluded from the reported claims in the tables below. Reported claims for losses from assumed reinsurance contracts are not available and hence not included in the reported claims. There are limitations that should be considered on the reported claim count data in the tables below, including: - Claim counts are presented only on a reported (not an ultimate) basis; - The tables below include lines of business and geographies at a certain aggregated level which may indicate different frequency and severity trends and characteristics, and may not be as meaningful as the claim count information related to the individual products within those lines of business and geographies; - Certain lines of business are more likely to be subject to occurrences involving multiple claimants and features, which can distort measures based on the reported claim counts in the table below; and - Reported claim counts are not adjusted for ceded reinsurance, which may distort the measure of frequency or severity. Supplemental Information: The information about incurred and paid loss development for all periods preceding the year ended December 31, 2021 and the related historical claims payout percentage disclosure is unaudited and is presented as supplementary information. The following tables present undiscounted, incurred and paid losses and allocated loss adjustment expenses by accident year, on a net basis after reinsurance, with a separate presentation of the ADC excluding the related amortization of the deferred gain: U.S. Workers' Compensation During 2021, we recognized $ 617 million of favorable prior year development, net of external reinsurance but before ADC cessions due to continued favorable frequency and severity trends seen across the diagonals for many subsets of US Workers Compensation especially for recent accident years. During 2020, we recognized $ 367 million of favorable prior year development, net of external reinsurance but before ADC cessions due to continued favorable frequency and severity trends seen across the diagonals for many subsets of US Workers Compensation especially for recent accident years. During 2019, we recognized $ 699 million of favorable prior year development in U.S. Workers Compensation business due to favorable frequency and severity trends seen across the diagonals across many subsets of U.S. Workers Compensation especially in the recent accident years. Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2021 Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2021 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 2,382 $ 2,194 $ 2,286 $ 2,260 $ 2,334 $ 2,308 $ 2,259 $ 2,247 $ 2,224 $ 2,218 $ ( 6) $ 207 72,021 $ ( 380) $ ( 192) $ 1,838 $ 15 2013 1,932 1,880 1,950 2,060 2,032 1,974 1,916 1,886 1,877 ( 9) 190 48,167 ( 373) ( 177) 1,504 13 2014 1,729 1,764 1,866 1,862 1,794 1,709 1,679 1,637 ( 42) 292 40,776 ( 466) ( 269) 1,171 23 2015 1,708 1,864 1,866 1,814 1,722 1,675 1,634 ( 41) 421 36,513 ( 593) ( 394) 1,041 27 2016 1,299 1,346 1,318 1,140 1,090 1,075 ( 15) 293 31,374 - - 1,075 293 2017 789 850 776 763 731 ( 32) 255 27,125 - - 731 255 2018 998 1,021 961 911 ( 50) 429 21,739 - - 911 429 2019 887 873 812 ( 61) 359 16,471 - - 812 359 2020 597 573 ( 24) 276 13,245 - - 573 276 2021 597 446 9,067 - - 597 446 Total $ 12,065 $ ( 280) $ ( 1,812) $ 10,253 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 7,286) - 126 ( 7,160) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2012, net of reinsurance 4,635 ( 365) ( 3,570) 1,065 Unallocated loss adjustment expense prior year development 28 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 9,414 $ ( 617) $ ( 5,256) $ 4,158 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ 1,819 $ 1,814 $ 1,793 $ 1,804 $ 1,826 $ 1,838 $ 12 2013 1,500 1,494 1,481 1,458 1,520 1,504 ( 16) 2014 1,311 1,310 1,309 1,329 1,223 1,171 ( 52) 2015 1,279 1,279 1,318 1,134 1,105 1,041 ( 64) 2016 1,299 1,346 1,318 1,140 1,090 1,075 ( 15) 2017 789 850 776 763 731 ( 32) 2018 998 1,021 961 911 ( 50) 2019 887 873 812 ( 61) 2020 597 573 ( 24) 2021 597 Total $ 7,208 $ 8,032 $ 9,067 $ 9,549 $ 9,958 $ 10,253 $ ( 302) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 7,160) Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance 1,065 ( 31) Unallocated loss adjustment expense prior year development ( 70) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 4,158 $ ( 403) The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ ( 515) $ ( 494) $ ( 466) $ ( 443) $ ( 398) $ ( 380) $ 18 2013 ( 560) ( 538) ( 493) ( 458) ( 366) ( 373) ( 7) 2014 ( 555) ( 552) ( 485) ( 380) ( 456) ( 466) ( 10) 2015 ( 585) ( 587) ( 496) ( 588) ( 570) ( 593) ( 23) 2016 - - - - - - - 2017 - - - - - - - 2018 - - - - - - - 2019 - - - - - - - 2020 - - - - - - - 2021 - - - - - - - Total $ ( 2,216) $ ( 2,171) $ ( 1,940) $ ( 1,869) $ ( 1,790) $ ( 1,812) $ ( 22) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below 126 Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance ( 3,570) 334 Unallocated loss adjustment expense prior year development ( 98) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ ( 5,256) $ 214 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 415 $ 804 $ 1,089 $ 1,272 $ 1,440 $ 1,563 $ 1,632 $ 1,669 $ 1,719 $ 1,763 $ ( 33) 2013 282 619 879 1,067 1,214 1,287 1,335 1,372 1,422 ( 38) 2014 231 558 786 930 1,030 1,096 1,137 1,180 ( 31) 2015 234 524 725 854 925 979 1,013 ( 24) 2016 147 378 521 584 630 662 - 2017 93 224 294 333 367 - 2018 85 215 296 359 - 2019 93 219 301 - 2020 64 159 - 2021 60 - Total $ 7,286 $ ( 126) Reserving Process and Methodology U.S. Workers’ Compensation is an extremely long-tail line of business, with loss emergence extending for decades. We generally use a combination of loss development, frequency/severity and expected loss ratio methods for workers’ compensation. Many of our workers compensation policies contain risk-sharing features, including high deductibles, self-insured retentions or retrospective rating features, in addition to a traditional insurance component. These risk-sharing programs generally are large and complex, comprising multiple products, years and structures, and are subject to amendment over time. We group guaranteed cost and excess of deductible business separately and then further by state and industry subset to the extent that meaningful differences are determined to exist. We also separately analyze certain subsets of the portfolio that have unique characteristics (e.g., U.S. government sub-contractor accounts and construction wrap-up business). For excess of deductible business, we also segment by size of deductible and whether the claim is handled by AIG or an outside third-party administrator. The proportion of large deductible business has increased over time, which has slowed the reporting pattern of claims. For guaranteed cost business, expected loss ratio methods generally are given significant weight only in the most recent accident year. Workers’ compensation claims are generally characterized by high frequency, low severity, and relatively consistent loss development from one accident year to the next. We historically have been a leading writer of workers’ compensation, and thus have sufficient volume of claims experience to use development methods. We generally segregate California (CA) and New York (NY) businesses from the other states to reflect their different development patterns and changing percentage of the mix by state. The claims development tables above are impacted by two other significant initiatives, which offset each other. In recent years, we instituted claims strategy changes and loss mitigation efforts to accelerate settlements, which we believe results in an overall reduction in claim costs. This strategy resulted in an increase in paid losses along the latest diagonals relative to prior years. I |
VARIABLE LIFE AND ANNUITY CONTR
VARIABLE LIFE AND ANNUITY CONTRACTS | 12 Months Ended |
Dec. 31, 2021 | |
VARIABLE LIFE AND ANNUITY CONTRACTS | |
VARIABLE LIFE AND ANNUITY CONTRACTS | 13. Variable Life and Annuity Contracts We report variable contracts within the separate accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder and the separate account meets additional accounting criteria to qualify for separate account treatment. The assets supporting the variable portion of variable annuity and variable universal life contracts that qualify for separate account treatment are carried at fair value and reported as Separate account assets, with an equivalent summary total reported as Separate account liabilities. Policy values for variable products and investment contracts are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units in the separate accounts, plus any liabilities for guaranteed minimum death benefits (GMDB) or guaranteed minimum withdrawal benefits (GMWB) included in Future policy benefits or Policyholder contract deposits, respectively. Amounts assessed against the contract holders for mortality, administrative and other services are included in revenue. Net investment income, net investment gains and losses, changes in fair value of assets, and policyholder account deposits and withdrawals related to separate accounts are excluded from the Consolidated Statements of Income (Loss), Comprehensive Income (Loss) and Cash Flows. Variable annuity contracts may include certain contractually guaranteed benefits to the contract holder. These guaranteed features include GMDB that are payable in the event of death, and living benefits that are payable in the event of annuitization, or, in other instances, at specified dates during the accumulation period. Living benefits primarily include GMWB. A variable annuity contract may include more than one type of guaranteed benefit feature; for example, it may have both a GMDB and a GMWB. However, a policyholder can only receive payout from one guaranteed feature on a contract containing a death benefit and a living benefit, i.e. the features are mutually exclusive (except a surviving spouse who has a rider to potentially collect both a GMDB upon their spouse’s death and a GMWB during their lifetime). A policyholder cannot purchase more than one living benefit on one contract. The net amount at risk for each feature is calculated irrespective of the existence of other features; as a result, the net amount at risk for each feature is not additive to that of other features. Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: At December 31, (in millions) 2021 2020* Equity funds $ 62,241 $ 56,762 Bond funds 9,016 8,298 Balanced funds 29,311 27,307 Money market funds 1,005 1,122 Total $ 101,573 $ 93,489 * Total variable annuity contracts with guarantees on December 31, 2020 was revised from $ 94.0 billion to $ 93.5 billion across all separate account investment options. These revisions have no impact on AIG’s consolidated financial statements and are not considered material to previously issued financial statements. GMDB Depending on the contract, the GMDB feature may provide a death benefit of either (a) total deposits made to the contract less any partial withdrawals plus a minimum return (and in rare instances, no minimum return) or (b) the highest contract value attained, typically on any anniversary date minus any subsequent withdrawals following the contract anniversary. GMDB is our most widely offered benefit. The liability for GMDB, which is recorded in Future policy benefits, represents the expected value of benefits in excess of the projected account value, with the excess recognized ratably over the accumulation period based on total expected assessments, through Policyholder benefits and losses incurred. The net amount at risk for GMDB represents the amount of benefits in excess of account value if death claims were filed on all contracts on the balance sheet date. The following table presents details concerning our GMDB exposures, by benefit type: At December 31, 2021 2020 Net Deposits Net Deposits Plus a Minimum Highest Contract Plus a Minimum Highest Contract (dollars in millions) Return Value Attained Return Value Attained Account value $ 114,936 $ 17,298 $ 105,010 $ 16,667 Net amount at risk 509 258 490 276 Average attained age of contract holders by product 66 72 65 72 Range of guaranteed minimum return rates 0- 4.50% 0- 4.50% The following summarizes GMDB liability related to variable annuity contracts: Years Ended December 31, (in millions) 2021 2020 2019 Balance, beginning of year $ 421 $ 407 $ 397 Reserve increase (decrease) 72 41 35 Benefits paid ( 35) ( 43) ( 40) Changes in reserves related to unrealized appreciation (depreciation) of investments ( 13) 16 15 Balance, end of year $ 445 $ 421 $ 407 Assumptions used to determine the GMDB liability include interest rates, which vary by year of issuance and products; mortality rates, which are based upon actual experience modified to allow for variations in policy form; lapse rates, which are based upon actual experience modified to allow for variations in policy form; investment returns, based on stochastically generated scenarios; and asset growth assumptions, which include a reversion to the mean methodology, similar to that applied for DAC. We regularly evaluate estimates used to determine the GMDB liability and adjust the additional liability balance, with a related charge or credit to Policyholder benefits and losses incurred, if actual experience or other evidence suggests that earlier assumptions should be revised. GMWB Certain of our variable annuity contracts contain optional GMWB benefits and, to a lesser extent, guaranteed minimum accumulation benefits, which are not currently offered. With a GMWB, the contract holder can monetize the excess of the guaranteed amount over the account value of the contract only through a series of withdrawals that do not exceed a specific percentage per year of the guaranteed amount. If, after the series of withdrawals, the account value is exhausted, the contract holder will receive a series of annuity payments equal to the remaining guaranteed amount, and, for lifetime GMWB products, the annuity payments continue as long as the covered person(s) is living. The liabilities for GMWB, which are recorded in Policyholder contract deposits, are accounted for as embedded derivatives measured at fair value, with changes in the fair value of the liabilities recorded in Net realized gains (losses). The fair value of these embedded derivatives was a net liability of $ 2.5 billion and $ 3.6 billion at December 31, 2021 and 2020, respectively. For information regarding the fair value measurement of guaranteed benefits that are accounted for as embedded derivatives see Note 4. We had account values subject to GMWB that totaled $ 51 billion and $ 48 billion at December 31, 2021 and 2020, respectively. The net amount at risk for GMWB represents the present value of minimum guaranteed withdrawal payments, in accordance with contract terms, in excess of account value, assuming no lapses. The net amount at risk related to the GMWB guarantees was $ 513 million and $ 1.1 billion at December 31, 2021 and 2020, respectively. We use derivative instruments and other financial instruments to mitigate a portion of our exposure that arises from GMWB benefits. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2021 | |
DEBT | |
DEBT | 14. Debt Our long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts, hedge accounting valuation adjustments and fair value adjustments, when applicable. The following table lists our total debt outstanding at December 31, 2021 and 2020. The interest rates presented in the following table are the range of contractual rates in effect at December 31, 2021, including fixed and variable-rates: Balance at Balance at At December 31, 2021 Range of Maturity December 31, December 31, (in millions) Interest Rate(s) Date(s) 2021 2020 Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable 0% - 8.13% 2022 - 2055 $ 19,633 $ 23,068 Junior subordinated debt 4.88% - 8.18% 2037 - 2058 1,164 1,561 AIG Japan Holdings Kabushiki Kaisha 0.20% - 0.35% 2023 - 2025 333 361 AIGLH notes and bonds payable 6.63% - 7.50% 2025 - 2029 199 282 AIGLH junior subordinated debt 7.57% - 8.50% 2030 - 2046 227 361 Validus notes and bonds payable 8.88% 2040 293 348 Total AIG general borrowings 21,849 25,981 AIG borrowings supported by assets: (a) Series AIGFP matched notes and bonds payable 0.175% - 0.18% 2046 18 21 GIAs, at fair value 0.00% - 7.15% 2022 - 2047 1,803 2,033 Notes and bonds payable, at fair value 0.50% - 10.37% 2030 - 2037 68 64 Total AIG borrowings supported by assets 1,889 2,118 Total debt issued or guaranteed by AIG 23,738 28,099 Other subsidiaries notes, bonds, loans and mortgages payable - not guaranteed by AIG 2.76% - 5.70% 2022 - 2024 3 4 Total long-term debt 23,741 28,103 Debt of consolidated investment entities - not guaranteed by AIG (b) 0% - 7.95% 2022 - 2051 6,422 9,431 Total debt $ 30,163 $ 37,534 (a) AIG Parent guarantees all such debt, except for Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. Collateral posted to third parties was $ billion at both December 31, 2021 and December 31, 2020, respectively. This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties. (b) At December 31, 2021, includes debt of consolidated investment entities primarily related to real estate investments of $ 1.9 billion and other securitization vehicles of $ 4.5 billion. At December 31, 2020, includes debt of consolidated investment entities related to real estate investments of $ 3.1 billion, affordable housing partnership investments of $ 2.3 billion and other securitization vehicles of $ 4.0 billion. The following table presents maturities of long-term debt (including unamortized original issue discount, hedge accounting valuation adjustments and fair value adjustments, when applicable): December 31, 2021 Year Ending (in millions) Total 2022 2023 2024 2025 2026 Thereafter Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable $ 19,633 $ 17 $ 1,614 $ 999 $ 2,752 $ 1,543 $ 12,708 Junior subordinated debt 1,164 - - - - - 1,164 AIG Japan Holdings Kabushiki Kaisha 333 - 218 - 115 - - AIGLH notes and bonds payable 199 - - - 101 - 98 AIGLH junior subordinated debt 227 - - - - - 227 Validus notes and bonds payable 293 - - - - - 293 Total AIG general borrowings 21,849 17 1,832 999 2,968 1,543 14,490 AIG borrowings supported by assets: Series AIGFP matched notes and bonds payable 18 - - - - - 18 GIAs, at fair value 1,803 50 124 146 571 100 812 Notes and bonds payable, at fair value 68 - - - - - 68 Total AIG borrowings supported by assets 1,889 50 124 146 571 100 898 Total debt issued or guaranteed by AIG 23,738 67 1,956 1,145 3,539 1,643 15,388 Debt not guaranteed by AIG: Other subsidiaries notes, bonds, loans and mortgages payable 3 1 2 - - - - Total debt not guaranteed by AIG 3 1 2 - - - - Total * $ 23,741 $ 68 $ 1,958 $ 1,145 $ 3,539 $ 1,643 $ 15,388 * Does not reflect $ 6.4 billion of notes issued by consolidated investment entities, for which recourse is limited to the assets of the respective investment entities and for which there is no recourse to the general credit of AIG. Uncollateralized and collateralized notes, bonds, loans and mortgages payable consisted of the following: Uncollateralized Collateralized At December 31, 2021 Notes/Bonds/Loans Loans and (in millions) Payable Mortgages Payable Total AIG general borrowings $ 333 $ - $ 333 Other subsidiaries notes, bonds, loans and mortgages payable * - 3 3 Total $ 333 $ 3 $ 336 * AIG does not guarantee any of these borrowings. AIGLH Junior Subordinated Debentures In connection with our acquisition of AIG Life Holdings, Inc. (AIGLH) in 2001, we entered into arrangements with AIGLH with respect to outstanding AIGLH capital securities. In 1996, AIGLH issued capital securities through a trust to institutional investors and funded the trust with AIGLH junior subordinated debentures issued to the trust with the same terms as the capital securities. On July 11, 2013, the AIGLH junior subordinated debentures were distributed to holders of the capital securities, the capital securities were cancelled and the trusts were dissolved. At December 31, 2021, the junior subordinated debentures outstanding consisted of $ 54 million of 8.5 percent junior subordinated debentures due July 2030, $ 142 million of 8.125 percent junior subordinated debentures due March 2046 and $ 31 million of 7.57 percent junior subordinated debentures due December 2045, each guaranteed by AIG Parent. DEBT CASH TENDER OFFERS AND REDEMPTIONS In 2021, we repurchased, through cash tender offers, and redeemed $ 4.0 billion aggregate principal amount of certain notes and debentures issued or guaranteed by AIG, for an aggregate purchase price of $ 4.4 billion, resulting in a total loss on extinguishment of debt of $ 408 million. This included the following: redeemed $ 1.5 billion aggregate principal amount of our 3.300% Notes Due 2021 for a redemption price of 100 percent of the principal amount, plus accrued and unpaid interest; repurchased, through cash tender offers, $ 945 million aggregate principal amount of certain notes and debentures issued or guaranteed by AIG for an aggregate purchase price of approximately $ 1.3 billion; and redeemed $ 1.5 billion aggregate principal amount of our 4.875% Notes Due 2022 for a redemption price of 103.156 percent of the principal amount, plus accrued and unpaid interest. Credit Facilities On November 19, 2021, we entered into a credit agreement, which provides for a committed, revolving syndicated credit facility (the Facility) as a potential source of liquidity for general corporate purposes. The Facility provides for aggregate commitments by the bank syndicate to provide unsecured revolving loans and/or standby letters of credit of up to $ 4.5 billion without any limits on the type of borrowings and is scheduled to expire in November 2026. Under circumstances described in the credit agreement, the aggregate commitments may be increased by up to $ 500 million, for a total commitment of up to $ 5 billion. In connection with our entry into the aforementioned credit agreement, we terminated our prior $ 4.5 billion credit facility, which we previously entered into on June 27, 2017. No amounts were outstanding under this credit agreement at the time of its termination. At December 31, 2021 Available Effective (in millions) Size Amount Expiration Date Syndicated Credit Facility $ 4,500 $ 4,500 November 2026 11/19/2021 We also maintain revolving credit facilities that can be utilized exclusively by certain consolidated investment entities to acquire assets related to securitizations. Draws under those credit facilities cannot be utilized for general corporate purposes. Prior to the pricing of the related securitizations, these credit facilities have combined limits of up to $ 636 million. Subsequent to pricing of the related securitizations, the combined limits are expected to increase to up to approximately $ 1.4 billion. As of December 31, 2021, we have drawn $ 57 million under the credit facilities. These credit facilities have maturity dates ranging from one to ten years . |
CONTINGENCIES, COMMITMENTS AND
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 12 Months Ended |
Dec. 31, 2021 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 15. Contingencies, Commitments and Guarantees In the normal course of business, various contingent liabilities and commitments are entered into by AIG and our subsidiaries. In addition, AIG Parent guarantees various obligations of certain subsidiaries. Although AIG cannot currently quantify its ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on AIG’s consolidated financial condition or its consolidated results of operations or consolidated cash flows for an individual reporting period. Legal Contingencies Overview In the normal course of business, AIG and our subsidiaries are subject to regulatory and government investigations and actions, and litigation and other forms of dispute resolution in a large number of proceedings pending in various domestic and foreign jurisdictions. Certain of these matters involve potentially significant risk of loss due to potential for significant jury awards and settlements, punitive damages or other penalties. Many of these matters are also highly complex and may seek recovery on behalf of a class or similarly large number of plaintiffs. It is therefore inherently difficult to predict the size or scope of potential future losses arising from these matters. In our insurance and reinsurance operations, litigation and arbitration concerning the scope of coverage under insurance and reinsurance contracts, and litigation and arbitration in which our subsidiaries defend or indemnify their insureds under insurance contracts, are generally considered in the establishment of our loss reserves. Separate and apart from the foregoing matters involving insurance and reinsurance coverage, AIG, our subsidiaries and their respective officers and directors are subject to a variety of additional types of legal proceedings brought by holders of AIG securities, customers, employees and others, alleging, among other things, breach of contractual or fiduciary duties, bad faith, indemnification and violations of federal and state statutes and regulations. With respect to these other categories of matters not arising out of claims for insurance or reinsurance coverage, we establish reserves for loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In many instances, we are unable to determine whether a loss is probable or to reasonably estimate the amount of such a loss and, therefore, the potential future losses arising from legal proceedings may exceed the amount of liabilities that we have recorded in our financial statements covering these matters. While such potential future charges could be material, based on information currently known to management, management does not believe, other than as may be discussed below, that any such charges are likely to have a material adverse effect on our financial position or results of operation. Additionally, from time to time, various regulatory and governmental agencies review the transactions and practices of AIG and our subsidiaries in connection with industry-wide and other inquiries or examinations into, among other matters, the business practices of current and former operating insurance subsidiaries. Such investigations, inquiries or examinations could develop into administrative, civil or criminal proceedings or enforcement actions, in which remedies could include fines, penalties, restitution or alterations in our business practices, and could result in additional expenses, limitations on certain business activities and reputational damage. Moriarty Litigation Effective January 1, 2013, the California legislature enacted AB 1747 (the Act), which amended the Insurance Code to mandate that life insurance policies issued and delivered in California contain a 60-day grace period during which time the policies must remain in force after a premium payment is missed, and that life insurers provide both a 30-day minimum notification of lapse and the right of policy owners to designate a secondary recipient for lapse and termination notices. Following guidance from the California Department of Insurance and certain industry trade groups, American General Life Insurance Company (AGL) interpreted the Act to be prospective in nature, applying only to policies issued and delivered on or after the Act’s January 1, 2013, effective date. On July 18, 2017, AGL was sued in a putative class action captioned Moriarty v. American General Life Insurance Company, No. 17-cv-1709 (S.D. Cal.), challenging AGL’s prospective application of the Act. Plaintiff’s complaint, which is similar to complaints filed against other insurers, argues that policies issued and delivered prior to January 1, 2013, like the $ 1 million policy issued to Plaintiff’s husband do not lapse—despite nonpayment of premiums—if the insurer has not complied with the Act’s terms. On August 30, 2021, the California Supreme Court issued an opinion in McHugh v. Protective Life Insurance, 12 Cal. 5th 213 (2021), ruling that the Act applies to all policies in force on January 1, 2013, regardless of when the policies were issued. The District Court in Moriarty reached effectively the same result on October 2, 2020, when it held that the Act applied to Plaintiff’s husband’s 25-year term life insurance policy under the theory that the payment of premiums “renewed” Plaintiff’s policy after the effective date of the Act. However, the District Court in Moriarty also ruled on October 2, 2020 that various fact issues precluded a final determination as to AGL’s liability and what (if any) corresponding damages may have resulted. In addition, the District Court denied Plaintiff’s motion for class certification without prejudice on November 25, 2020. Proceedings are ongoing in the District Court in the Moriarty case and in other California cases that raise similar industry-wide issues. We have accrued our current estimate of probable loss with respect to this litigation. lease Commitments We lease office space and equipment in various locations across jurisdictions in which the Company operates. The majority of the resulting obligation arising from these contracts is generated by our real estate portfolio, which only includes contracts classified as operating leases. The lease liability right of use asset Other liabilities Other assets 1.2 billion and $ 1.0 billion, respectively, at December 31, 2021, and $ 1.0 billion and $ 906 million, respectively, at December 31, 2020. We made cash payments of $ 231 million and $ 252 million in 2021 and 2020, respectively, in connection with these leases. The liability includes non-lease components, such as property taxes and insurance for our gross leases. Some of these leases contain options to renew after a specified period of time at the prevailing market rate; however, renewal options that have not been exercised as of December 31, 2021 are excluded until management attains a reasonable level of certainty. Some leases also include termination options at specified times and term; however, termination options are not reflected in the lease asset and liability balances until they have been exercised. The weighted average discount rate and lease term assumptions used in determining the liability are 2.60 percent and 10.6 years, respectively. The primary assumption used to determine the discount rate is the cost of funding for the Company, which is based on the secured borrowing rate for terms similar to the lease term, and for the major financial markets in which AIG operates. Rent expense was $ 237 million, $ 258 million and $ 232 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table presents the future undiscounted cash flows under operating leases at December 31, 2021: (in millions) 2022 $ 212 2023 178 2024 138 2025 111 2026 87 Remaining years after 2026 730 Total undiscounted lease payments $ 1,456 Less: Present value adjustment 266 Net lease liabilities 1,190 During 2019, we recognized a pretax net gain of $ 200 million from the sale and concurrent leaseback of our corporate headquarters. Other Commitments In the normal course of business, we enter into commitments to invest in limited partnerships, private equity funds and hedge funds and to purchase and develop real estate in the U.S. and abroad. These commitments totaled $ 7.3 billion at December 31, 2021. Guarantees Subsidiaries We have issued unconditional guarantees with respect to the prompt payment, when due, of all present and future payment obligations and liabilities of AIG Financial Products Corp. and related subsidiaries (collectively AIGFP) and of AIG Markets, Inc. arising from transactions entered into by AIG Markets, Inc. In connection with AIGFP’s business activities, AIGFP has issued, in a limited number of transactions, standby letters of credit or similar facilities to equity investors of structured leasing transactions in an amount equal to the termination value owing to the equity investor by the lessee in the event of a lessee default (the equity termination value). The total amount outstanding at December 31, 2021 was $ 74 million. In those transactions, AIGFP has agreed to pay such amount if the lessee fails to pay. The amount payable by AIGFP is, in certain cases, partially offset by amounts payable under other instruments typically equal to the present value of scheduled payments to be made by AIGFP. In the event that AIGFP is required to make a payment to the equity investor, the lessee is unconditionally obligated to reimburse AIGFP. To the extent that the equity investor is paid the equity termination value from the standby letter of credit and/or other sources, including payments by the lessee, AIGFP takes an assignment of the equity investor’s rights under the lease of the underlying property. Because the obligations of the lessee under the lease transactions are generally economically defeased, lessee bankruptcy is the most likely circumstance in which AIGFP would be required to pay without reimbursement. AIG Parent files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service (IRS). AIG Parent and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated federal income taxes. Under an Amended and Restated Tax Payment Allocation Agreement dated June 6, 2011 between AIG Parent and one of its Bermuda-domiciled insurance subsidiaries, AIG Life of Bermuda, Ltd. (AIGB), AIG Parent has agreed to indemnify AIGB for any tax liability (including interest and penalties) resulting from adjustments made by the IRS or other appropriate authorities to taxable income, special deductions or credits in connection with investments made by AIGB in certain affiliated entities. Business and Asset Dispositions We are subject to financial guarantees and indemnity arrangements in connection with the completed sales of businesses and assets. The various arrangements may be triggered by, among other things, declines in asset values, the occurrence of specified business contingencies, the realization of contingent liabilities, developments in litigation or breaches of representations, warranties or covenants provided by us. These arrangements are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or are not applicable. The Majority Interest Fortitude Sale was subject to a post-closing purchase price adjustment pursuant to which AIG would pay Fortitude Re for certain adverse development in property casualty related reserves, based on an agreed methodology, that may occur through December 31, 2023, up to a maximum of $ 500 million. Effective in the second quarter of 2021, AIG, Fortitude Holdings, Carlyle FRL, T&D and Carlyle amended the purchase agreement to finalize the post-closing purchase price adjustment for adverse reserve development. As a result of this amendment, during 2021, AIG recorded a $ 21 million benefit through Policyholder benefits and losses incurred and eliminated further net exposure to adverse development on the reserves ceded to Fortitude Re. We are unable to develop a reasonable estimate of the maximum potential payout under certain of these arrangements. Overall, we believe the likelihood that we will have to make any material payments related to completed sales under these arrangements is remote, and no material liabilities related to these arrangements have been recorded in the Consolidated Balance Sheets. For additional information on the Fortitude Re transaction, see Note 1. Other For additional information on commitments and guarantees associated with VIEs, see Note 9. For additional information about derivatives, see Note 10. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
EQUITY | |
EQUITY | 16. Equity Shares Outstanding Preferred Stock On March 14, 2019, we issued 20,000 shares of Series A 5.85% Non-Cumulative Perpetual Preferred Stock (Series A Preferred Stock) (equivalent to 20,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of Series A Preferred Stock), $ 5.00 par value and $ 25,000 liquidation preference per share (equivalent to $25 per Depositary Share). After underwriting discounts and expenses, we received net proceeds of approximately $ 485 million. We may redeem the Series A Preferred Stock at our option, (a) in whole, but not in part, at any time prior to March 15, 2024, within 90 days after the occurrence of a “Rating Agency Event,” at a redemption price equal to $ 25,500 per share of the Series A Preferred Stock (equivalent to $25.50 per Depositary Share), plus an amount equal to any dividends per share that have been declared but not paid prior to the redemption date (but no amount due in respect of any dividends that have not been declared prior to such date), or (b) (i) in whole, but not in part, at any time prior to March 15, 2024, within 90 days after the occurrence of a “Regulatory Capital Event,” or (ii) in whole or in part, from time to time, on or after March 15, 2024, in each case, at a redemption price equal to $ 25,000 per share of the Series A Preferred Stock (equivalent to $25.00 per Depositary Share), plus an amount equal to any dividends per share that have been declared but not paid prior to the redemption date (but no amount due in respect of any dividends that have not been declared prior to such date). A “Rating Agency Event” is generally defined to mean that any nationally recognized statistical rating organization within the meaning of Section 3(a)(62) of the Securities Exchange Act of 1934, as amended (the Exchange Act) that then publishes a rating for us amends, clarifies or changes the criteria it uses to assign equity credit to securities such as the Series A Preferred Stock, which amendment, clarification or change results in the shortening of the length of time the Series A Preferred Stock is assigned a particular level of equity credit by that rating agency as compared to the length of time it would have been assigned that level of equity credit by that rating agency or its predecessor on the initial issuance of the Series A Preferred Stock, or the lowering of the equity credit (including up to a lesser amount) assigned to the Series A Preferred Stock by that rating agency as compared to the equity credit assigned by that rating agency or its predecessor on the initial issuance of the Series A Preferred Stock. A “Regulatory Capital Event” is generally defined to mean our good faith determination that as a result of a change in law, rule or regulation, or a proposed change or an official judicial or administrative pronouncement, there is more than an insubstantial risk that the full liquidation preference of the Series A Preferred Stock would not qualify as capital (or a substantially similar concept) for purposes of any group capital standard to which we are or will be subject. Holders of the Series A Preferred Stock will be entitled to receive dividend payments only when, as and if declared by our Board of Directors (or a duly authorized committee of the board). Dividends will be payable from the original date of issue at a rate of 5.85% per annum, payable quarterly, in arrears, on the fifteenth day of March, June, September and December of each year, beginning on June 15, 2019. Dividends on the Series A Preferred Stock will be non-cumulative. In the event of any liquidation, dissolution or winding-up of the affairs of AIG, whether voluntary or involuntary, before any distribution or payment out of our assets may be made to or set aside for the holders of any junior stock, holders of the Series A Preferred Stock will be entitled to receive out of our assets legally available for distribution to our stockholders, an amount equal to $ 25,000 per share of Series A Preferred Stock (equivalent to $25.00 per Depositary Share), together with an amount equal to all declared and unpaid dividends (if any), but no amount in respect of any undeclared dividends prior to such payment date. Distributions will be made only to the extent of our assets that are available for distribution to stockholders (i.e., after satisfaction of all our liabilities to creditors, if any). The Series A Preferred Stock does not have voting rights, except in limited circumstances, including in the case of certain dividend non-payments. The following table presents declaration date, record date, payment date and dividends paid per preferred share and per depository share on the Series A Preferred Stock in the twelve months ended December 31, 2021, 2020 and 2019: Dividends Paid Declaration Date Record Date Payment Date Per Preferred Share Per Depositary Share November 4, 2021 November 30, 2021 December 15, 2021 $ 365.625 $ 0.365625 August 5, 2021 August 31, 2021 September 15, 2021 365.625 0.365625 May 6, 2021 May 31, 2021 June 15, 2021 365.625 0.365625 February 16, 2021 February 26, 2021 March 15, 2021 365.625 0.365625 November 5, 2020 November 30, 2020 December 15, 2020 $ 365.625 $ 0.365625 August 3, 2020 August 31, 2020 September 15, 2020 365.625 0.365625 May 4, 2020 May 29, 2020 June 15, 2020 365.625 0.365625 February 12, 2020 February 28, 2020 March 16, 2020 365.625 0.365625 October 31, 2019 November 29, 2019 December 16, 2019 $ 365.625 $ 0.365625 August 7, 2019 August 30, 2019 September 16, 2019 365.625 0.365625 May 21, 2019 May 31, 2019 June 17, 2019 369.6875 0.3696875 Common Stock The following table presents a rollforward of outstanding shares: Common Treasury Common Stock Stock Issued Stock Outstanding Year Ended December 31, 2019 Shares, beginning of year 1,906,671,492 ( 1,040,062,063) 866,609,429 Shares issued - 3,389,602 3,389,602 Shares repurchased - - - Shares, end of year 1,906,671,492 ( 1,036,672,461) 869,999,031 Year Ended December 31, 2020 Shares, beginning of year 1,906,671,492 ( 1,036,672,461) 869,999,031 Shares issued - 3,719,970 3,719,970 Shares repurchased - ( 12,160,952) ( 12,160,952) Shares, end of year 1,906,671,492 ( 1,045,113,443) 861,558,049 Year Ended December 31, 2021 Shares, beginning of year 1,906,671,492 ( 1,045,113,443) 861,558,049 Shares issued - 6,853,070 6,853,070 Shares repurchased - ( 49,723,756) ( 49,723,756) Shares, end of year 1,906,671,492 ( 1,087,984,129) 818,687,363 Dividends Dividends are payable on AIG Common Stock only when, as and if declared by our Board of Directors in its discretion, from funds legally available for this purpose. In considering whether to pay a dividend on or purchase shares of AIG Common Stock, our Board of Directors considers a number of factors, including, but not limited to: the capital resources available to support our insurance operations and business strategies, AIG’s funding capacity and capital resources in comparison to internal benchmarks, expectations for capital generation, rating agency expectations for capital, regulatory standards for capital and capital distributions, and such other factors as our Board of Directors may deem relevant. The payment of dividends is also subject to the terms of AIG’s outstanding Series A Preferred Stock, pursuant to which no dividends may be declared or paid on any AIG Common Stock unless the full dividends for the latest completed dividend period on all outstanding shares of Series A Preferred Stock have been declared and paid or provided for. The following table presents declaration date, record date, payment date and dividends paid per common share on AIG Common Stock in the twelve months ended December 31, 2021, 2020 and 2019 : Dividends Paid Declaration Date Record Date Payment Date Per Common Share November 4, 2021 December 16, 2021 December 30, 2021 $ 0.32 August 5, 2021 September 16, 2021 September 30, 2021 0.32 May 6, 2021 June 15, 2021 June 29, 2021 0.32 February 16, 2021 March 16, 2021 March 30, 2021 0.32 November 5, 2020 December 14, 2020 December 28, 2020 $ 0.32 August 3, 2020 September 17, 2020 September 30, 2020 0.32 May 4, 2020 June 15, 2020 June 29, 2020 0.32 February 12, 2020 March 16, 2020 March 30, 2020 0.32 October 31, 2019 December 12, 2019 December 26, 2019 $ 0.32 August 7, 2019 September 17, 2019 September 30, 2019 0.32 May 6, 2019 June 14, 2019 June 28, 2019 0.32 February 13, 2019 March 15, 2019 March 29, 2019 0.32 Repurchase of AIG Common Stock The following table presents repurchases of AIG Common Stock: Years Ended December 31, (in millions) 2021 2020 2019 Aggregate repurchases of common stock $ 2,643 $ 500 $ - Total number of common shares repurchased 50 12 - Aggregate repurchases of warrants * $ - $ - $ - Total number of warrants repurchased - - - * Our warrants to purchase shares of AIG Common Stock expired on January 19, 2021. Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise. Certain of our share repurchases have been and may from time to time be effected through Securities Exchange Act of 1934 (Exchange Act) Rule 10b5-1 repurchase plans. In August 2021, we executed an accelerated stock repurchase (ASR) agreement with a third-party financial institution. The total number of shares of AIG Common Stock repurchased in the year ended December 31, 2021, and the aggregate purchase price of those shares, reflect our payment of $ 1.0 billion in the aggregate under the ASR agreement and the receipt of approximately 18 million shares of AIG Common Stock in the aggregate. In February 2020, we executed an ASR agreement with a third-party financial institution. The total number of shares of AIG Common Stock repurchased in the year ended December 31, 2020, and the aggregate purchase price of those shares, reflect our payment of $ 500 million in the aggregate under the ASR agreement and the receipt of approximately 12 million shares of AIG Common Stock in the aggregate. Additionally, in the year ended December 31, 2021, we repurchased approximately 32 million shares of AIG Common Stock for an aggregate purchase price of approximately $ 1.6 billion pursuant to Exchange Act Rule 10b5-1 repurchase plans. Approximately $ 92 million of these share repurchases were funded with proceeds received from warrant exercises that occurred prior to the expiration of warrants to purchase shares of AIG Common Stock on January 19, 2021. The timing of any future repurchases will depend on market conditions, our business and strategic plans, financial condition, results of operations, liquidity and other factors. The repurchase of AIG Common Stock is also subject to the terms of AIG’s outstanding Series A Preferred Stock, pursuant to which AIG may not (other than in limited circumstances) purchase, redeem or otherwise acquire AIG Common Stock unless the full dividends for the latest completed dividend period on all outstanding shares of Series A Preferred Stock have been declared and paid or provided for. Accumulated Other Comprehensive Income (Loss) The following table presents a rollforward of Accumulated other comprehensive income (loss): Unrealized Appreciation Fair Value of (Depreciation) of Fixed Unrealized Liabilities Under Maturity Securities on Appreciation Foreign Retirement Fair Value Option Which Other-Than- (Depreciation) Currency Plan Attributable to Temporary Credit of All Other Translation Liabilities Changes in (in millions) Impairments Were Taken Investments Adjustments Adjustment Own Credit Risk Total Balance, January 1, 2019, net of tax $ ( 38) $ 2,426 $ ( 2,725) $ ( 1,086) $ 10 $ ( 1,413) Change in unrealized appreciation of investments 842 13,333 - - - 14,175 Change in deferred policy acquisition costs adjustment and other * 15 ( 1,871) - - - ( 1,856) Change in future policy benefits - ( 4,462) - - - ( 4,462) Change in foreign currency translation adjustments - - 135 - - 135 Change in net actuarial loss - - - ( 58) - ( 58) Change in prior service credit - - - ( 2) - ( 2) Change in deferred tax asset (liability) ( 196) ( 1,311) ( 31) 24 - ( 1,514) Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - ( 3) ( 3) Total other comprehensive income (loss) 661 5,689 104 ( 36) ( 3) 6,415 Noncontrolling interests - 16 4 - - 20 Balance, December 31, 2019, net of tax $ 623 $ 8,099 $ ( 2,625) $ ( 1,122) $ 7 $ 4,982 Unrealized Appreciation Fair Value of (Depreciation) of Fixed Unrealized Liabilities Under Maturity Securities on Appreciation Foreign Retirement Fair Value Option Which Allowance (Depreciation) Currency Plan Attributable to for Credit Losses of All Other Translation Liabilities Changes in (in millions) Was Taken Investments Adjustments Adjustment Own Credit Risk Total Balance, January 1, 2020, net of tax $ - $ 8,722 $ ( 2,625) $ ( 1,122) $ 7 $ 4,982 Change in unrealized appreciation (depreciation) of investments ( 133) 9,624 - - - 9,491 Change in deferred policy acquisition costs adjustment and other 11 ( 1,327) - - - ( 1,316) Change in future policy benefits - 2,408 - - - 2,408 Change in foreign currency translation adjustments - - 303 - - 303 Change in net actuarial loss - - - ( 67) - ( 67) Change in prior service credit - - - ( 18) - ( 18) Change in deferred tax asset (liability) 27 ( 2,351) 56 ( 21) - ( 2,289) Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - 1 1 Total other comprehensive income (loss) ( 95) 8,354 359 ( 106) 1 8,513 Noncontrolling interests - ( 17) 1 - - ( 16) Balance, December 31, 2020, net of tax $ ( 95) $ 17,093 $ ( 2,267) $ ( 1,228) $ 8 $ 13,511 Change in unrealized appreciation (depreciation) of investments 58 ( 9,313) - - - ( 9,255) Change in deferred policy acquisition costs adjustment and other ( 14) 885 - - - 871 Change in future policy benefits - 917 - - - 917 Change in foreign currency translation adjustments - - ( 117) - - ( 117) Change in net actuarial loss - - - 417 - 417 Change in prior service cost - - - 8 - 8 Change in deferred tax asset (liability) ( 9) 1,510 ( 70) ( 100) - 1,331 Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - ( 2) ( 2) Total other comprehensive income (loss) 35 ( 6,001) ( 187) 325 ( 2) ( 5,830) Other changes in AOCI: SAFG 9.9% noncontrolling interest sale 3 ( 1,100) ( 2) - - ( 1,099) Noncontrolling interests - ( 102) ( 3) - - ( 105) Balance, December 31, 2021, net of tax $ ( 57) $ 10,094 $ ( 2,453) $ ( 903) $ 6 $ 6,687 * Includes net unrealized gains and losses attributable to businesses held for sale at December 31, 2019. The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2021, 2020 and 2019: Unrealized Appreciation Fair Value of (Depreciation) of Fixed Unrealized Liabilities Under Maturity Securities on Appreciation Foreign Retirement Fair Value Option Which Other-Than- (Depreciation) Currency Plan Attributable to Temporary Credit of All Other Translation Liabilities Changes in (in millions) Impairments Were Taken Investments Adjustments Adjustment Own Credit Risk Total December 31, 2019 Unrealized change arising during period $ 853 $ 7,324 $ 135 $ ( 97) $ ( 3) $ 8,212 Less: Reclassification adjustments included in net income ( 4) 324 - ( 37) - 283 Total other comprehensive income (loss), before income tax expense (benefit) 857 7,000 135 ( 60) ( 3) 7,929 Less: Income tax expense (benefit) 196 1,311 31 ( 24) - 1,514 Total other comprehensive income (loss), net of income tax expense (benefit) $ 661 $ 5,689 $ 104 $ ( 36) $ ( 3) $ 6,415 Unrealized Appreciation Fair Value of (Depreciation) of Fixed Unrealized Liabilities Under Maturity Securities on Appreciation Foreign Retirement Fair Value Option Which Allowance (Depreciation) Currency Plan Attributable to for Credit Losses of All Other Translation Liabilities Changes in (in millions) Was Taken Investments Adjustments Adjustment Own Credit Risk Total December 31, 2020 Unrealized change arising during period $ ( 161) $ 11,758 $ 303 $ ( 130) $ 1 $ 11,771 Less: Reclassification adjustments included in net income ( 39) 1,053 - ( 45) - 969 Total other comprehensive income (loss), before income tax expense (benefit) ( 122) 10,705 303 ( 85) 1 10,802 Less: Income tax expense (benefit) ( 27) 2,351 ( 56) 21 - 2,289 Total other comprehensive income (loss), net of income tax expense (benefit) $ ( 95) $ 8,354 $ 359 $ ( 106) $ 1 $ 8,513 December 31, 2021 Unrealized change arising during period $ 44 $ ( 6,583) $ ( 117) $ 379 $ ( 2) $ ( 6,279) Less: Reclassification adjustments included in net income - 928 - ( 46) - 882 Total other comprehensive income (loss), before income tax expense (benefit) 44 ( 7,511) ( 117) 425 ( 2) ( 7,161) Less: Income tax expense (benefit) 9 ( 1,510) 70 100 - ( 1,331) Total other comprehensive income (loss), net of income tax expense (benefit) $ 35 $ ( 6,001) $ ( 187) $ 325 $ ( 2) $ ( 5,830) The following table presents the effect of the reclassification of significant items out of AOCI on the respective line items in the Consolidated Statements of Income (Loss): Affected Line Item in the Years Ended December 31, Amount Reclassified from AOCI Consolidated Statements (in millions) 2021 2020 2019 of Income (Loss) Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken Investments $ - $ ( 39) $ - Net realized gains Total - ( 39) - Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken Investments $ - $ - $ ( 4) Net realized gains Total - - ( 4) Unrealized appreciation (depreciation) of all other investments Investments 928 1,053 324 Net realized gains Total 928 1,053 324 Change in retirement plan liabilities adjustment Prior-service credit ( 3) ( 1) - * Actuarial losses ( 43) ( 44) ( 37) * Total ( 46) ( 45) ( 37) Total reclassifications for the year $ 882 $ 969 $ 283 * These AOCI components are included in the computation of net periodic pension cost. For additional information see Note 20. NON-CONTROLLING INTEREST On November 2, 2021, AIG and Blackstone completed the acquisition by Blackstone of a 9.9 percent equity stake in SAFG, for $ 2.2 billion in an all cash transaction, subject to adjustment if the final pro forma adjusted book value is greater or lesser than the target pro forma adjusted book value. For additional information on the Life and Retirement business, see Note 1. The following table presents the effect of changes in our ownership interest in SAFG on our equity: Year Ended December 31, (in millions) 2021 Net income attributable to AIG common shareholders $ 9,359 Changes in AIG equity for sale of 9.9% interest in SAFG ( 629) Change from Net income attributable to AIG common shareholders and changes in AIG's ownership interests $ 8,730 |
EARNINGS PER COMMON SHARE (EPS)
EARNINGS PER COMMON SHARE (EPS) | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER COMMON SHARE (EPS) | |
EARNINGS PER COMMON SHARE (EPS) | 17. Earnings Per Common Share (EPS) The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The diluted EPS computation is based on those shares used in the basic EPS computation plus common shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits, using the treasury stock method or the if-converted method, as applicable. The following table presents the computation of basic and diluted EPS: Years Ended December 31, (dollars in millions, except per common share data) 2021 2020 2019 Numerator for EPS: Income (loss) from continuing operations $ 9,923 $ ( 5,833) $ 4,121 Less: Net income from continuing operations attributable to noncontrolling interests 535 115 821 Less: Preferred stock dividends 29 29 22 Income (loss) attributable to AIG common shareholders from continuing operations 9,359 ( 5,977) 3,278 Income from discontinued operations, net of income tax expense - 4 48 Net income (loss) attributable to AIG common shareholders $ 9,359 $ ( 5,973) $ 3,326 Denominator for EPS: Weighted average common shares outstanding – basic 854,320,449 869,309,458 876,750,264 Dilutive common shares 10,564,430 - 12,761,682 Weighted average common shares outstanding – diluted (a)(b) 864,884,879 869,309,458 889,511,946 Income (loss) per common share attributable to AIG common shareholders: Basic: Income (loss) from continuing operations $ 10.95 $ ( 6.88) $ 3.74 Income from discontinued operations $ - $ - $ 0.05 Income (loss) attributable to AIG common shareholders $ 10.95 $ ( 6.88) $ 3.79 Diluted: Income (loss) from continuing operations $ 10.82 $ ( 6.88) $ 3.69 Income from discontinued operations $ - $ - $ 0.05 Income (loss) attributable to AIG common shareholders $ 10.82 $ ( 6.88) $ 3.74 (a) For the year ended December 31, 2020, because we reported a net loss attributable to AIG common shareholders, all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts. The number of common shares excluded from the calculation was 5,401,597 shares. (b) Potential dilutive common shares include our share-based employee compensation plans, a weighted average portion of the 10-year warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011, which expired in January 2021 and an option for Blackstone to exchange all or a portion of its ownership interest in SAFG for AIG common shares. The number of common shares excluded from diluted shares outstanding was 12.0 million, 68.7 million and 20.0 million for the years ended December 31, 2021, 2020 and 2019, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive. For information regarding the Blackstone option to exchange all or a portion of its ownership interest in SAFG for AIG common shares, see Note 1. For information regarding our repurchases of AIG Common Stock, see Note 16. |
STATUTORY FINANCIAL DATA AND RE
STATUTORY FINANCIAL DATA AND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2021 | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | 18. Statutory Financial Data and Restrictions The following table presents statutory net income (loss) and capital and surplus for our General Insurance companies and our Life and Retirement companies in accordance with statutory accounting practices: (in millions) 2021 2020 2019 Years Ended December 31, Statutory net income (loss) (a)(b) General Insurance companies: Domestic $ 2,732 $ 1,044 $ 1,481 Foreign 1,597 797 1,384 Total General Insurance companies $ 4,329 $ 1,841 $ 2,865 Life and Retirement companies: Domestic $ 2,586 $ 482 $ 325 Foreign ( 1) 11 3,336 Total Life and Retirement companies $ 2,585 $ 493 $ 3,661 At December 31, Statutory capital and surplus (a)(b) General Insurance companies: Domestic $ 19,356 $ 18,195 Foreign 15,448 15,386 Total General Insurance companies $ 34,804 $ 33,581 Life and Retirement companies: Domestic $ 12,485 $ 10,960 Foreign 627 663 Total Life and Retirement companies $ 13,112 $ 11,623 Aggregate minimum required statutory capital and surplus: General Insurance companies: Domestic $ 4,032 $ 3,862 Foreign 7,666 7,429 Total General Insurance companies $ 11,698 $ 11,291 Life and Retirement companies: Domestic $ 3,850 $ 3,574 Foreign 214 207 Total Life and Retirement companies $ 4,064 $ 3,781 (a) Excludes discontinued operations and other divested businesses. Statutory capital and surplus and net income (loss) with respect to foreign operations are as of November 30. (b) The 2021 amounts reflect our best estimate of the statutory net income, capital and surplus as of the date of AIG’s Form 10-K filing. In aggregate, the 2020 General Insurance companies and Life and Retirement companies statutory net income decreased by $ 223 million and the 2020 General Insurance companies and Life and Retirement companies statutory capital and surplus increased by $ 55 million, compared to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2020, due to finalization of statutory filings and revision of prior period numbers. Our insurance subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by domestic and foreign insurance regulatory authorities. The principal differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP for domestic companies are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, investment impairments are determined in accordance with statutory accounting practices, assets and liabilities are presented net of reinsurance, policyholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. For domestic insurance subsidiaries, aggregate minimum required statutory capital and surplus is based on the greater of the RBC level that would trigger regulatory action or minimum requirements per state insurance regulation. Capital and surplus requirements of our foreign subsidiaries differ from those prescribed in the U.S., and can vary significantly by jurisdiction. At both December 31, 2021 and 2020, all domestic and foreign insurance subsidiaries individually exceeded the minimum required statutory capital and surplus requirements and all domestic insurance subsidiaries individually exceeded RBC minimum required levels. At December 31, 2021 and 2020, our domestic insurance subsidiaries used the following permitted practices that resulted in reported statutory surplus or risk-based capital that is significantly different from the statutory surplus or risk based capital that would have been reported had NAIC statutory accounting practices or the prescribed regulatory accounting practices of their respective state regulator been followed in all respects: Effective December 31, 2019 and subsequent reporting periods through September 30, 2020, a domestic life insurance subsidiary domiciled in Texas adopted a permitted statutory accounting practice to recognize an admitted asset related to the notional value of coverage defined in an excess of loss reinsurance agreement, net of specified amounts. This reinsurance agreement has a 20-year term and provides coverage to the subsidiary for aggregate claims incurred during the agreement term associated with guaranteed minimum withdrawal benefits on certain fixed index annuities generally issued prior to April 2019 (Block 1) exceeding an attachment point defined in the treaty. Effective October 1, 2020 and subsequent reporting periods through September 30, 2023, this permitted practice was expanded to similarly recognize an additional admitted asset related to the notional value of coverage defined in a separate excess of loss reinsurance agreement, net of specified amounts. This additional reinsurance agreement has a 25-year term and provides coverage to the subsidiary for aggregate excess of loss claims associated with guaranteed minimum withdrawal benefits on a block of fixed index annuities generally issued in April 2019 or later, including new business issued after the effective date (Block 2). In addition, effective December 31, 2020, this expanded permitted practice also extended the term of the permitted practice for Block 1 from September 30, 2020 to September 30, 2023. The reinsurance agreement covering contracts in Block 1 was also amended to conform certain provisions to be consistent with the Block 2 reinsurance agreement. The permitted practice allows the subsidiary to manage its reserves in a manner more in line with anticipated principle-based reserving requirements once they have been developed. This permitted practice resulted in an increase in the statutory surplus of this subsidiary of approximately $ 584 million and $ 614 million at December 31, 2021 and 2020, respectively. The subsidiary may seek continuation of the permitted practice beyond September 30, 2023, subject to the approval of its domiciliary regulator. As described in Note 12, our domestic property and casualty insurance subsidiaries domiciled in New York, Pennsylvania and Delaware discount non-tabular workers’ compensation reserves based on applicable prescribed or approved regulations, or in the case of our Delaware subsidiary, based on a permitted practice. This practice did not have a material impact on our statutory surplus, statutory net income (loss) or risk-based capital. Regulation XXX requires U.S. life insurers to establish additional statutory reserves for term life insurance policies with long-term premium guarantees and universal life policies with secondary guarantees (ULSGs). In addition, Guideline AXXX clarifies the application of Regulation XXX as to these guarantees, including certain ULSGs. Our domestic life insurance subsidiaries manage the capital impact of statutory reserve requirements under Regulation XXX and Guideline AXXX through unaffiliated and affiliated reinsurance transactions. The affiliated life insurers providing reinsurance capacity for such transactions are fully licensed insurance companies and are not formed under captive insurance laws. Under the other intercompany reinsurance arrangement, certain Regulation XXX and Guideline AXXX reserves related to a closed block of in-force business are ceded to an affiliated off-shore life insurer, which is licensed as a class E insurer under Bermuda law. This reinsurance arrangement does not meet the criteria for reinsurance accounting under U.S. GAAP; therefore, deposit accounting is applied by the assuming off-shore life insurer. Letters of credit are used to support the credit for reinsurance provided by the affiliated off-shore life insurer. For additional information regarding these letters of credit see Note 7. Subsidiary Dividend Restrictions Payments of dividends to us by our insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities. With respect to our domestic insurance subsidiaries, the payment of any dividend requires formal notice to the insurance department in which the particular insurance subsidiary is domiciled. For example, unless permitted by the Superintendent of Financial Services, property casualty companies domiciled in New York generally may not pay dividends to shareholders that, in any 12-month period, exceed the lesser of 10 percent of such company’s statutory policyholders’ surplus or 100 percent of its “adjusted net investment income,” for the previous year, as defined. Generally, less severe restrictions applicable to both property casualty and life insurance companies exist in most of the other states in which our insurance subsidiaries are domiciled. Under the laws of many states, an insurer may pay a dividend without prior approval of the insurance regulator when the amount of the dividend is below certain regulatory thresholds. Other foreign jurisdictions may restrict the ability of our foreign insurance subsidiaries to pay dividends. Various other regulatory restrictions also limit cash loans and advances to us by our subsidiaries. Largely as a result of these restrictions, approximately $ 43.3 billion of the statutory capital and surplus of our consolidated insurance subsidiaries were restricted from transfer to AIG Parent without prior approval of state insurance regulators at December 31, 2021. To our knowledge, no AIG insurance company is currently on any regulatory or similar “watch list” with regard to solvency. Parent Company Dividend Restrictions At December 31, 2021, our ability to pay dividends is not subject to any significant contractual restrictions, but remains subject to regulatory restrictions. For additional information about our ability to pay dividends to our shareholders see Note 16 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION PLANS | |
SHARE-BASED COMPENSATION PLANS | 19. Share-Based Compensation Plans The following table presents our total share-based compensation expense: Years Ended December 31, (in millions) 2021 2020 2019 Share-based compensation expense - pre-tax (a) $ 278 $ 274 $ 314 Share-based compensation expense - after tax (b) 220 216 248 (a) As a result of accelerated vesting events, such as retirement eligibility in the year of grant and involuntary terminations, we recognized $ 67 million, $ 63 million and $ 82 million in 2021, 2020 and 2019, respectively, prior to the end of the specified vesting periods. It is our policy to reverse compensation expense for forfeited awards when they occur. (b) We also recognized $ 16 million of additional tax expense due to share settlements occurring in 2021. Employee Plans The Company sponsors several stock compensation programs under the AIG Long Term Incentive Plan (LTIP) (as amended) from which performance share units (PSUs), restricted stock units (RSUs), stock options and deferred stock units (DSUs) (collectively units) are issued. In addition, off-cycle grants are made from time to time during the year generally as sign-on awards to new hires or as a result of a change in employee status. The LTIP was governed by the AIG 2013 Omnibus Incentive Plan (2013 Omnibus Plan), until it was replaced by the 2021 Omnibus Plan, which was adopted at the annual shareholders’ meeting in May 2021. The adoption occurred after the annual 2021 LTI awards were granted. Our share-settled awards are settled with previously acquired shares held in AIG’s treasury. AIG Omnibus Incentive Plan The 2013 Omnibus Plan, which replaced the AIG 2010 Stock Incentive Plan (2010 Plan), provided for the grants of share-based awards to our employees and non-employee directors. The total number of shares granted under the 2013 Omnibus Plan (the reserve) was the sum of 1) 45 million shares of AIG Common Stock, plus 2) the number of authorized shares that remained available for issuance under the 2010 Plan when the Omnibus Plan became effective, plus 3) the number of shares of AIG Common Stock relating to outstanding awards under the 2010 Plan at the time the 2013 Omnibus Plan became effective that subsequently were forfeited, expired, terminated or otherwise lapse or are settled in cash. Each share-based unit granted under the Omnibus Plan reduces the number of shares available for future grants by one share. However, shares with respect to awards that are forfeited, expired or settled for cash, and shares withheld for taxes on awards (other than options and stock appreciation rights awards) are returned to the reserve. Upon the adoption of the 2021 Omnibus Plan, 8.1 million shares were added to the number of authorized shares that remained available for issuance under the 2013 Omnibus Plan at the time the 2021 Omnibus Plan was adopted, resulting in 24,343,068 shares being available for future grants under the 2021 Omnibus Plan as of December 31, 2021. AIG Long Term Incentive Plan Long-Term Incentive (LTI) Awards The LTIP provides for an annual award to certain employees, including our senior executive officers and other highly compensated employees that may be comprised of a combination of one or more of the following units: PSUs, RSUs or stock options. The number of PSUs issued on the grant date (the target) provides the opportunity for LTIP participants (usually senior management) to receive shares of AIG Common Stock based on AIG achieving specified performance goals at the end of a three-year zero to 200 percent of the target for the 2021, 2020 and 2019 LTI awards, depending on AIG’s performance relative to a specified peer group and/or the outcome of pre-established financial goals, as applicable. RSUs and stock options are earned based solely on continued service by the participant. Vesting occurs on January 1 of the year immediately following the end of the three-year Prior to 2021, LTI awards accrued dividend equivalent units (DEUs) in the form of additional PSUs and RSUs whenever a cash dividend was declared on shares of AIG Common Stock; the DEUs are subject to the same vesting terms and conditions as the underlying unit. Beginning in 2021, PSUs and RSUs granted via the annual 2021 LTI award (as of the date of grant), and those existing from the 2020 and 2019 LTI awards (as of the third quarter) accrue dividend equivalent rights (DERs) as AIG’s dividends are declared. These DERs will be settled in cash only if the underlying units’ vesting conditions are met; previously accrued DEUs were not impacted by this change. Unit Valuation The fair value of time-vesting RSUs as well as PSUs that are earned based on certain company-specific metrics was based on the closing price of AIG Common Stock on the grant date; while the fair value of PSUs that are earned based on AIG’s relative total shareholder return (TSR) was determined on the grant date using a Monte Carlo simulation. The following table presents the assumptions used to estimate the fair value of PSUs that vest based on AIG’s TSR: 2021 Expected dividend yield (a) - % Expected volatility (b) 47.63 % Risk-free interest rate (c) 0.28 % (a) The award agreement provides that TSR for AIG and each member of the Peer Group will be calculated assuming dividends distributed are reinvested on the ex-dividend date. (b) We used the historical volatility over the most recent 2.81-year period for AIG and the members of the Peer Group, commensurate with the remaining Performance Period as of the Valuation Date. (c) We converted the semi-annual zero-coupon U.S. Treasury rates as of the Valuation Date to continuously compounded rates. We then chose the continuously compounded risk-free rate that is commensurate with the length of the remaining performance period as of the valuation date and interpolated between the yields of the two-year three-year Modification of LTI awards During the third quarter of 2019, we added a modifier to the 2019 performance share units awarded to certain senior executives to cap payout at 100 percent of target if our total shareholder return for the three-year During the third quarter of 2020, we reduced the performance goals from three to two metrics for the 2018 LTI and 2019 LTI awards for certain PSU recipients, which resulted in a net credit of $ 4 million pre-tax to compensation expense. The modification did not apply to the Company’s senior executives. The following table summarizes outstanding share-settled LTI awards (a) Weighted Average As of or for the Year Number of Units Grant-Date Fair Value Ended December 31, 2021 (b) 2021 LTI 2020 LTI 2019 LTI 2021 LTI 2020 LTI 2019 LTI Unvested, beginning of year - 5,348,656 3,497,419 $ - $ 31.33 $ 44.79 Granted 5,948,029 - - 44.96 - - Vested (c) ( 1,344,917) ( 771,594) ( 3,174,495) 44.90 30.57 44.76 Forfeited ( 214,678) ( 410,568) ( 322,924) 44.60 31.79 44.85 Unvested, end of year (d) 4,388,434 4,166,494 - $ 45.00 $ 31.43 $ - (a) Excludes stock options, other RSUs and DSUs, which are discussed under Stock Options, Other RSU Grants and Non-Employee Plan, respectively. (b) PSUs represent target amount granted and does not reflect potential increases or decreases that could result from the final outcome of the performance goals for the respective awards, which is determined by the CMRC in the quarter after the applicable performance period ends. (c) Also reflects units that vest as a result of an accelerated vesting event that occurred prior to the specified vesting date. (d) At December 31, 2021, the total unrecognized compensation cost for outstanding RSUs and PSUs was $ 185 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 0.95 year and 2 years. Stock Options Stock options were issued as part of the 2021, 2020 and 2019 LTI awards, and to certain newly hired senior executives in 2017 and 2018. Option awards are generally granted with an exercise price equal to the market price of the company’s stock on the grant date. The fair value of the options was estimated on the grant date using the Black-Scholes model for the time-vesting options, and a Monte Carlo simulation for the hurdle-vesting options using the assumptions noted in the following table. The following weighted-average assumptions were used for stock options granted: 2021 2020 2019 Expected annual dividend yield (a) 2.89 % 3.97 % 2.86 % Expected volatility (b) 36.68 % 42.03 % 23.17 % Risk-free interest rate (c) 0.95 % 0.57 % 2.47 % Expected term (d) 6.43 years 6.39 years 6.38 years (a) The dividend yield is the projected annualized AIG dividend yield estimated by Bloomberg Professional service as of the valuation date. (b) The expected volatility is based on the implied volatility of 24 months stock option estimated by the Bloomberg Professional service as of the valuation date. (c) The risk-free interest rate is the continuously compounded interest rate for the term between the valuation date and the expiration date that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the valuation date. (d) The contractual terms are 7 and 10 years from the date of grant. The following table provides a rollforward of stock option activity: Weighted Average Aggregate As of or for the Year Weighted Average Remaining Intrinsic Values Ended December 31, 2021 Units Exercise Price Contractual Life (in millions) Outstanding, beginning of year 11,429,491 $ 47.67 7.59 Granted 2,674,353 44.23 Exercised ( 674,216) 46.16 Forfeited or expired ( 408,201) 45.13 Outstanding, end of year 13,021,427 $ 47.12 7.32 $ 142 Exercisable, end of year 4,047,524 $ 52.88 6.27 $ 21 The weighted average grant-date fair value of stock options granted during 2021, 2020 and 2019 was $ 10.00, $ 9.61 and $ 10.01, respectively. As of December 31, 2021, we recognized $ 29.2 million of expense, while $ 21 million was unrecognized and is expected to be amortized up to 2.00 years. Other RSU Grants The Company may issue time-vesting RSUs for various reasons including, as a sign-on bonus, retention grant or replacement award in an acquisition. Vesting for these awards generally ranges from 1 to 3 years and is contingent on continuous service. The following table summarizes outstanding share-settled RSU grants. Weighted Average As of or for the Year Number of Units Grant-Date Fair Value Ended December 31, 2021 2020 2019 2021 2020 2019 Unvested, beginning of year 1,151,380 1,231,185 1,634,610 $ 46.18 $ 54.17 $ 56.11 Granted 493,140 583,068 399,779 49.36 35.54 52.40 Vested ( 699,067) ( 535,220) ( 774,350) 50.03 50.89 57.32 Forfeited ( 125,813) ( 127,653) ( 28,854) 51.80 54.90 55.23 Unvested, end of year 819,640 1,151,380 1,231,185 $ 43.95 $ 46.18 $ 54.17 We recognized $ 18.7 million of expense related to these RSU grants in 2021. Total unrecognized compensation cost related to these grants was $ 24 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 1.15 years and 4.00 years at December 31, 2021. Non-Employee Plan Our non-employee directors, who serve on our Board of Directors, receive share-based compensation in the form of fully vested DSUs with delivery deferred until retirement from the Board. DSUs granted in 2021, 2020 and 2019 accrue dividend equivalents in the form of additional DSUs equal to the amount of any regular quarterly dividend that would have been paid by AIG if the shares of AIG Common Stock underlying the DSUs had been outstanding. In 2021, 2020 and 2019, we granted to non-employee directors 55,133, 94,062 and 49,706 DSUs, respectively, under the 2013 Plan, and recognized expense of $ 2.7 million, $ 2.4 million and $ 2.6 million, respectively. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2021 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 20. Employee Benefits Pension Plans We offer various defined benefit plans to eligible employees. Effective January 1, 2016, the U.S. defined benefit pension plans were frozen. Consequently, these plans are closed to new participants and current participants no longer earn benefits. The U.S. AIG Retirement Plan (the qualified plan) is a noncontributory defined benefit plan subject to the provisions of ERISA. In 2012, the qualified plan was converted to a cash balance formula comprised of pay credits based on six Employees satisfying certain age and service requirements (i.e., grandfathered employees) remain covered under the average pay formula that was in effect prior to the conversion. The final average pay formula is based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Grandfathered employees will receive the higher of the benefit under the cash balance formula or the final average pay formula at retirement. In the U.S. we also sponsor non-qualified unfunded defined benefit plans, such as the AIG Non-Qualified Retirement Income Plan (AIG NQRIP) for certain employees, including key executives, designed to supplement pension benefits provided by the qualified plan. The AIG NQRIP provides a benefit equal to the reduction in benefits under the qualified plan as a result of federal tax limitations on compensation and benefits payable. Non-U.S. defined benefit plans generally are either based on the employee’s years of credited service and compensation in the years preceding retirement or on points accumulated based on the employee’s job grade and other factors during each year of service. Postretirement Plans U.S. postretirement medical and life insurance benefits are based upon the employee attaining the age of 55 and having a minimum of ten years of service, which was reduced to 5 years in 2019 for medical coverage only. Eligible employees who have medical coverage can enroll in retiree medical upon termination of employment. Medical benefits are contributory, while the life insurance benefits, which are closed to new employees, are generally non-contributory. Retiree medical contributions vary from none for pre-1989 retirees to actual premium payments reduced by certain subsidies for post-1992 retirees. These retiree contributions are subject to annual adjustments. Other cost sharing features of the medical plan include deductibles, coinsurance, Medicare coordination, and an employer subsidy for grandfathered employees only. Postretirement benefits are offered in certain non-U.S. countries and vary by geographic location. The following table presents the funded status of the plans reconciled to the amount reported in the Consolidated Balance Sheets. The measurement date for most of the non-U.S. defined benefit pension and postretirement plans is November 30, consistent with the fiscal year end of the sponsoring companies. For all other plans, measurement occurs as of December 31. As of or for the Years Ended Pension Postretirement December 31, U.S. Plans (a) Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (in millions) 2021 2020 2021 2020 2021 2020 2021 2020 Change in projected benefit obligation: Benefit obligation, beginning of year $ 5,410 $ 4,972 $ 1,231 $ 1,174 $ 191 $ 181 $ 71 $ 61 Service cost 5 5 21 21 1 1 1 1 Interest cost 92 134 9 10 3 5 2 2 Actuarial (gain) loss (b) ( 384) 612 10 1 ( 10) 17 ( 17) 8 Benefits paid: AIG assets ( 18) ( 17) ( 9) ( 9) ( 11) ( 13) ( 1) ( 1) Plan assets ( 174) ( 294) ( 30) ( 21) - - - - Plan amendment - - - 18 - - ( 2) - Curtailments - - - - - - ( 7) - Settlements ( 135) - ( 9) ( 24) - - - - Foreign exchange effect - - ( 66) 60 - - - - Other ( 1) ( 2) - 1 - - - - Projected benefit obligation, end of year $ 4,795 $ 5,410 $ 1,157 $ 1,231 $ 174 $ 191 $ 47 $ 71 Change in plan assets: Fair value of plan assets, beginning of year $ 4,931 $ 4,465 $ 977 $ 899 $ - $ - $ - $ - Actual return on plan assets, net of expenses 124 760 77 37 - - - - AIG contributions 18 17 48 49 11 13 1 1 Benefits paid: AIG assets ( 18) ( 17) ( 9) ( 9) ( 11) ( 13) ( 1) ( 1) Plan assets ( 174) ( 294) ( 30) ( 21) - - - - Settlements ( 135) - ( 9) ( 24) - - - - Foreign exchange effect - - ( 58) 46 - - - - Fair value of plan assets, end of year $ 4,746 $ 4,931 $ 996 $ 977 $ - $ - $ - $ - Funded status, end of year $ ( 49) $ ( 479) $ ( 161) $ ( 254) $ ( 174) $ ( 191) $ ( 47) $ ( 71) Amounts recognized in the balance sheet: Assets $ 198 $ - $ 84 $ 73 $ - $ - $ - $ - Liabilities ( 247) ( 479) ( 245) ( 327) ( 174) ( 191) ( 47) ( 71) Total amounts recognized $ ( 49) $ ( 479) $ ( 161) $ ( 254) $ ( 174) $ ( 191) $ ( 47) $ ( 71) Pre-tax amounts recognized in Accumulated other comprehensive income (loss): Net gain (loss) $ ( 1,162) $ ( 1,493) $ ( 119) $ ( 178) $ 3 $ ( 7) $ 11 $ ( 14) Prior service (cost) credit - - ( 34) ( 40) - - 2 - Total amounts recognized $ ( 1,162) $ ( 1,493) $ ( 153) $ ( 218) $ 3 $ ( 7) $ 13 $ ( 14) (a) Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $ 247 million and $ 282 million for the U.S. at December 31, 2021 and 2020, respectively, and $ 204 million and $ 243 million for the non-U.S. at December 31, 2021 and 2020, respectively. (b) The significant gain in 2021 is primarily due to the changes in discount rates and the mortality projection scale for the U.S. AIG Retirement Plan. The following table presents the accumulated benefit obligations for U.S. and non-U.S. pension benefit plans: At December 31, (in millions) 2021 2020 U.S. pension benefit plans $ 4,795 $ 5,410 Non-U.S. pension benefit plans $ 1,141 $ 1,213 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 Assets ABO Exceeds Fair Value of Plan Assets U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2021 2020 2021 2020 2021 2020 2021 2020 Projected benefit obligation $ 247 $ 5,410 $ 897 $ 1,019 $ - $ - $ - $ - Accumulated benefit obligation - - - - 247 5,410 836 931 Fair value of plan assets - 4,931 605 620 - 4,931 605 620 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. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 Components of net periodic benefit cost: Service cost * $ 5 $ 5 $ 5 $ 21 $ 21 $ 21 $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 Interest cost 92 134 176 9 10 15 3 5 6 2 2 2 Expected return on assets ( 243) ( 239) ( 229) ( 21) ( 21) ( 21) - - - - - - Amortization of prior service cost (credit) - - - 3 2 2 - - - - ( 1) ( 2) Amortization of net (gain) loss 33 33 35 7 8 5 - - ( 1) 1 - - Net periodic benefit cost (credit) ( 113) ( 67) ( 13) 19 20 22 4 6 6 4 2 1 Settlement (credit) charges 34 - - 1 3 ( 2) - - - - - - Net benefit cost (credit) $ ( 79) $ ( 67) $ ( 13) $ 20 $ 23 $ 20 $ 4 $ 6 $ 6 $ 4 $ 2 $ 1 Total recognized in Accumulated other comprehensive income (loss) $ 332 $ ( 57) $ 14 $ 65 $ ( 1) $ ( 45) $ 10 $ ( 17) $ ( 17) $ 27 $ ( 9) $ ( 10) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 411 $ 10 $ 27 $ 45 $ ( 24) $ ( 65) $ 6 $ ( 23) $ ( 23) $ 23 $ ( 11) $ ( 11) * Reflects administrative fees for the U.S. pension plans. Interest cost for pension and postretirement benefits for our U.S. plans and largest non-U.S. plans is measured using the spot rate approach, which applies specific spot rates along the yield curve to a plan’s corresponding discounted cash flows that comprise the obligation. This method provides a more precise measurement of interest cost by aligning the timing of the plans’ discounted cash flows to the corresponding spot rates on the yield curve . For certain non-U.S. plans, i nterest cost is measured utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligations. A 100 basis point increase in the expected long-term rate of return would decrease the 2022 pension expense by approximately $ 56 million with all other items remaining the same. A 100 basis point increase in the discount rate would decrease the 2022 pension expense by approximately $ 6 million. Conversely, a 100 basis point decrease in the discount rate would increase the 2022 pension expense by approximately $ 11 million, while a 100 basis point decrease in the expected long-term rate of return would increase the 2022 pension expense by approximately $ 56 million, with all other items remaining the same. Assumptions The following table summarizes the weighted average assumptions used to determine the benefit obligations: Pension Postretirement U.S. Plans Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (a) December 31, 2021 Discount rate 2.75 % 1.09 % 2.87 % 2.89 % Interest crediting rate 2.06 % 0.70 % (b) N/A N/A Rate of compensation increase N/A (c) 2.40 % N/A N/A December 31, 2020 Discount rate 2.28 % 1.00 % 2.25 % 2.33 % Interest crediting rate 1.57 % 0.72 % (b) N/A N/A Rate of compensation increase N/A (c) 2.28 % N/A N/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. The following table summarizes assumed health care cost trend rates for the U.S. plans: At December 31, 2021 2020 Following year: Medical (before age 65) 5.45% 5.55% Medical (age 65 and older) 4.98% 5.00% Ultimate rate to which cost increase is assumed to decline 4.00% 4.50% Year in which the ultimate trend rate is reached: Medical (before age 65) 2046 2038 Medical (age 65 and older) 2046 2038 The following table presents the weighted average assumptions used to determine the net periodic benefit costs: Pension Postretirement U.S. Plans Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (a) For the Year Ended December 31, 2021 Discount rate 2.28 % 1.00 % 2.45 % 2.33 % Interest crediting rate 1.57 % 0.72 % (b) N/A N/A Rate of compensation increase N/A 2.28 % N/A N/A Expected return on assets 5.15 % 2.23 % N/A N/A For the Year Ended December 31, 2020 Discount rate 3.16 % 1.09 % 3.14 % 3.18 % Interest crediting rate 2.19 % 0.44 % (b) N/A N/A Rate of compensation increase N/A 2.22 % N/A 3.00 % Expected return on assets 5.55 % 2.32 % N/A N/A For the Year Ended December 31, 2019 Discount rate 4.22 % 1.71 % 4.17 % 4.12 % Interest crediting rate 3.34 % 0.74 % (b) N/A N/A Rate of compensation increase N/A 2.27 % N/A 3.00 % Expected return on assets 6.20 % 2.51 % N/A N/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. Discount Rate Methodology The projected benefit cash flows under the U.S. AIG Retirement Plan were discounted using the spot rates derived from the Mercer U.S. Pension Discount Yield Curve (Mercer Yield Curve) at December 31, 2021 and 2020, which resulted in a single discount rate that would produce the same liability at the respective measurement dates. The discount rates were 2.75 percent at December 31, 2021 and 2.28 percent at December 31, 2020. The methodology was consistently applied for the respective years in determining the discount rates for the other U.S. pension plans. In general, the discount rates for the non-U.S. plans were developed using a similar methodology to the U.S. AIG Retirement plan, by using country-specific Mercer Yield Curves. The projected benefit obligation for AIG’s Japan pension plans represents approximately 50 percent and 51 percent of the total projected benefit obligations for our non-U.S. pension plans at December 31, 2021 and 2020, respectively. The weighted average discount rate of 0.52 percent and 0.56 percent at December 31, 2021 and 2020, respectively, was selected by reference to the Mercer Yield Curve for Japan. Plan Assets The investment strategy with respect to assets relating to our U.S. and non-U.S. pension plans is designed to achieve investment returns that will provide for the benefit obligations of the plans over the long term, limit the risk of short-term funding shortfalls and maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including, but not limited to, volatility relative to the benefit obligations, liquidity, and concentration, and incorporates the risk/return profile applicable to each asset class. There were no shares of AIG Common Stock included in the U.S. and non-U.S. pension plans assets at December 31, 2021 or 2020. U.S. Pension Plan The assets of the qualified plan are monitored by the AIG U.S. Investment Committee and actively managed by the investment managers, which involves allocating the plan’s assets among approved asset classes within ranges as permitted by the strategic allocation. The long-term strategic asset allocation historically has been reviewed and revised approximately every three years. The investment strategy is focused on de-risking the qualified plan via regular monitoring through liability driven investing and the glide path approach, where the glide path defines the target allocation for the “Return-Seeking” portion of the portfolio (i.e., growth assets) based on the funded ratio and level of interest rates. Under this approach, the allocation to growth assets is reduced and the allocation to liability-hedging assets is increased as the plan’s funded ratio increases in accordance with the defined glide path. The following table presents the asset allocation percentage by major asset class for the U.S. qualified plan and the target allocation for 2022 based on the plan’s funded status at December 31, 2021: Target Actual Actual At December 31, 2022 2021 2020 Asset class: Equity securities 15 % 15 % 25 % Fixed maturity securities 75 71 57 Other investments 10 14 18 Total 100 % 100 % 100 % The expected weighted average long-term rate of return for the plan was 5.15 percent and 5.55 percent for 2021 and 2020, respectively. The expected weighted average rate of return is an aggregation of expected returns within each asset class category, weighted for the investment mix of the assets. The combination of the expected asset return and any contributions made by us are expected to maintain the plan’s ability to meet all required benefit obligations. The expected asset return for each asset class was developed based on an approach that considers key fundamental drivers of the asset class returns in addition to historical returns, current market conditions, asset volatility and the expectations for future market returns. Non-U.S. Pension Plans The assets of the non-U.S. pension plans are held in various trusts in multiple countries and are invested primarily in equities and fixed maturity securities to maximize the long-term return on assets for a given level of risk. The following table presents the asset allocation percentage by major asset class for non-U.S. pension plans and the target allocation: Target Actual Actual At December 31, 2022 2021 2020 Asset class: Equity securities 20 % 24 % 22 % Fixed maturity securities 57 44 45 Other investments 20 24 24 Cash and cash equivalents 3 8 9 Total 100 % 100 % 100 % The assets of AIG’s Japan pension plans represent approximately 61 percent of total non-U.S. assets at both December 31, 2021 and 2020. The expected long-term rate of return was 1.85 percent and 1.84 percent, for 2021 and 2020, respectively, and is evaluated by the Japanese Pension Investment Committee on a quarterly and annual basis along with various investment managers and is revised to achieve the optimal allocation to meet targeted funding levels if necessary. In addition, the funding policy is revised in accordance with local regulation every five years. The expected weighted average long-term rate of return for all our non-U.S. pension plans was 2.23 percent and 2.32 percent for the years ended December 31, 2021 and 2020, respectively. It is an aggregation of expected returns within each asset class that was generally developed based on the building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns. Assets Measured at Fair Value 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 4 to the Consolidated Financial Statements. U.S. Plans Non-U.S. Plans (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total At December 31, 2021 Assets: Cash and cash equivalents $ 118 $ - $ - $ 118 $ 84 $ - $ - $ 84 Equity securities: U.S. (a) 301 - - 301 - - - - International (b) 9 - - 9 185 54 - 239 Fixed maturity securities: U.S. investment grade (c) 27 2,858 16 2,901 - - - - International investment grade (c) - 302 - 302 - 180 - 180 U.S. and international high yield (d) - 90 - 90 - 239 - 239 Mortgage and other asset-backed securities - 55 1 56 - - - - Other fixed maturity securities - 3 - 3 - 19 - 19 Other investment types (e) : Futures 4 - - 4 - - - - Direct private equity (f) - - 8 8 - - - - Insurance contracts - 11 - 11 - - 171 171 Mutual funds (g) - - - - - 64 - 64 Total $ 459 $ 3,319 $ 25 $ 3,803 $ 269 $ 556 $ 171 $ 996 At December 31, 2020 Assets: Cash and cash equivalents $ 247 $ - $ - $ 247 $ 83 $ - $ - $ 83 Equity securities: U.S. (a) 459 - - 459 - - - - International (b) 183 - - 183 155 58 - 213 Fixed maturity securities: U.S. investment grade (c) - 2,217 10 2,227 - - - - International investment grade (c) - 237 - 237 - 174 - 174 U.S. and international high yield (d) - 282 - 282 - 269 - 269 Mortgage and other asset-backed securities - 49 - 49 - - - - Other investment types (e) : Futures 3 ( 7) - ( 4) - - - - Direct private equity (f) - - 6 6 - - - - Insurance contracts - 13 - 13 - - 179 179 Mutual funds (g) - - - - - 59 - 59 Total $ 892 $ 2,791 $ 16 $ 3,699 $ 238 $ 560 $ 179 $ 977 (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 $ 943 million and $ 1,232 million at December 31, 2021 and 2020, 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. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we had no significant concentrations of risks at December 31, 2021. Changes in Level 3 Fair Value Measurements The following table presents changes in our U.S. and non-U.S. Level 3 plan assets measured at fair value: Net Changes in Changes in Unrealized Realized Unrealized Gains (Losses) Included and Gains (Losses) in Other Comprehensive Balance Unrealized Balance on Instruments Income (Loss) for Recurring At December 31, 2021 Beginning Gains Transfers Transfers at End Held at Level 3 Instruments (in millions) of Year (Losses) Purchases Sales Issuances Settlements In Out of Year End of Year Held at End of Year U.S. Plan Assets: Fixed maturity securities U.S. investment grade $ 10 $ - $ 5 $ ( 4) $ - $ - $ 5 $ - $ 16 $ - $ - Mortgage and other asset-backed securities - - 1 - - - - - 1 - - Direct private equity 6 2 - - - - - - 8 1 - Total $ 16 $ 2 $ 6 $ ( 4) $ - $ - $ 5 $ - $ 25 $ 1 $ - Non-U.S. Plan Assets: Insurance contracts $ 179 $ ( 9) $ 1 $ - $ - $ - $ - $ - $ 171 $ - $ - Total $ 179 $ ( 9) $ 1 $ - $ - $ - $ - $ - $ 171 $ - $ - Net Changes in Changes in Unrealized Realized Unrealized Gains (Losses) Included and Gains (Losses) in Other Comprehensive Balance Unrealized Balance on Instruments Income (Loss) for Recurring At December 31, 2020 Beginning Gains Transfers Transfers at End Held at Level 3 Instruments (in millions) of year (Losses) Purchases Sales Issuances Settlements In Out of year End of year Held at End of Year U.S. Plan Assets: Fixed maturity securities U.S. investment grade $ 9 $ 1 $ - $ - $ - $ - $ - $ - $ 10 $ - $ - Direct private equity 11 ( 3) - ( 2) - - - - 6 ( 3) - Total $ 20 $ ( 2) $ - $ ( 2) $ - $ - $ - $ - $ 16 $ ( 3) $ - Non-U.S. Plan Assets: Insurance contracts $ 160 $ 18 $ 1 $ - $ - $ - $ - $ - $ 179 $ - $ - Total $ 160 $ 18 $ 1 $ - $ - $ - $ - $ - $ 179 $ - $ - Expected Cash Flows Funding for the qualified plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. There are no minimum required cash contributions in 2021 for the U.S. AIG Retirement Plan. The non-qualified and postretirement plans’ benefit payments are deductible when paid to participants. Our annual pension contribution in 2022 is expected to be approximately $ 65 million for our U.S. and non-U.S. pension plans. This estimate is subject to change, since contribution decisions are affected by various factors including our liquidity, market performance and management’s discretion. 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: Pension Postretirement U.S. Non-U.S. U.S. Non-U.S. (in millions) Plans Plans Plans Plans 2022 $ 324 $ 40 $ 12 $ 1 2023 309 42 12 1 2024 326 48 12 1 2025 312 51 11 1 2026 304 53 10 2 2027-2031 1,409 282 46 9 Defined Contribution Plans We sponsor several defined contribution plans for U.S. employees that provide for pre-tax salary reduction contributions by employees. The most significant plan is the AIG Incentive Savings Plan, for which the matching contribution is 100 percent of the first six three 183 million, $ 188 million and $ 195 million in 2021, 2020 and 2019, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | 21. Income Taxes U.S. TAX LAW CHANGES The IRS has continued to issue new guidance in relation to the Tax Cuts and Jobs Act (the Tax Act) enacted in 2017. Guidance has been issued covering provisions for Global Intangible Low-Taxed Income (GILTI) under which taxes are imposed on the excess of a deemed return on tangible assets of certain foreign subsidiaries, foreign tax credits by which the U.S. mitigates double taxation of foreign operations, and other elements of tax law. Changes to this guidance, and other provisions of tax law, are expected in future periods. Such guidance may result in changes to the interpretations and assumptions we made and actions we may take, which may impact amounts recorded with respect to international provisions of the Tax Act, possibly materially. Consistent with accounting guidance, we have made an accounting policy election to treat GILTI taxes as a period tax charge in the period the tax is incurred. On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act to mitigate the economic impacts of the COVID-19 pandemic. The tax provisions of the CARES Act have not had and are currently not expected to have a material impact on AIG’s U.S. federal tax liabilities. On November 15, 2021, the U.S. enacted the Infrastructure Investment and Jobs Act to improve infrastructure in the U.S. The tax provisions of the Infrastructure Investment and Jobs Act have not had and are currently not expected to have a material impact on AIG’s U.S. federal tax liabilities. Reclassification of Certain Tax Effects from AOCI We use an item-by-item approach to release the stranded or disproportionate income tax effects in AOCI related to our available-for-sale securities. Under this approach, a portion of the disproportionate tax effects is assigned to each individual security lot at the date the amount becomes lodged. When the individual securities are sold, mature, or are otherwise impaired on an other-than-temporary basis, the assigned portion of the disproportionate tax effect is reclassified from AOCI to income (loss) from continuing operations. EFFECTIVE TAX RATE The following table presents income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred: Years Ended December 31, (in millions) 2021 2020 2019 U.S. $ 9,838 $ ( 8,396) $ 3,825 Foreign 2,261 1,103 1,462 Total $ 12,099 $ ( 7,293) $ 5,287 The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations: Years Ended December 31, (in millions) 2021 2020 2019 Foreign and U.S. components of actual income tax expense (benefit): U.S.: Current $ ( 216) $ ( 57) $ 278 Deferred 2,190 ( 1,676) 633 Foreign: Current 171 274 267 Deferred 31 ( 1) ( 12) Total $ 2,176 $ ( 1,460) $ 1,166 Our actual income tax expense (benefit) differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following: Years Ended December 31, 2021 2020 2019 Pre-Tax Tax Percent of Pre-Tax Tax Percent of Pre-Tax Tax Percent of Income Expense/ Pre-Tax Income Expense/ Pre-Tax Income Expense/ Pre-Tax (dollars in millions) (Loss) (Benefit) Income (Loss) (Loss) (Benefit) Income (Loss) (Loss) (Benefit) Income (Loss) U.S. federal income tax at statutory rate $ 12,099 $ 2,540 21.0 % $ ( 7,288) $ ( 1,531) 21.0 % $ 5,336 $ 1,120 21.0 % Adjustments: Tax exempt interest ( 18) ( 0.1) ( 19) 0.3 ( 25) ( 0.5) Uncertain tax positions* ( 9) ( 0.1) 165 ( 2.3) 258 4.8 Reclassifications from AOCI ( 109) ( 0.9) ( 101) 1.4 ( 113) ( 2.1) Dispositions of subsidiaries 11 0.1 180 ( 2.5) 21 0.4 Non-controlling interest ( 97) ( 0.8) ( 12) 0.2 ( 5) ( 0.1) Non-deductible transfer pricing charges 16 0.1 11 ( 0.2) 15 0.3 Dividends received deduction ( 37) ( 0.3) ( 39) 0.5 ( 40) ( 0.7) Effect of foreign operations 134 1.1 76 ( 1.0) 82 1.5 Share-based compensation payments excess tax effect 16 0.1 35 ( 0.5) 27 0.5 State income taxes 37 0.3 15 ( 0.2) 13 0.2 Expiration of tax attribute carryforwards 16 0.1 221 ( 3.0) - - Tax audit resolution ( 935) ( 7.6) ( 379) 5.2 - - Other* ( 107) ( 0.9) ( 16) 0.2 ( 134) ( 2.5) Effect of discontinued operations - - - - ( 8) ( 0.1) Valuation allowance: Continuing operations 718 5.9 ( 65) 0.9 ( 44) ( 0.8) Consolidated total amounts 12,099 2,176 18.0 ( 7,288) ( 1,459) 20.0 5,336 1,167 21.9 Amounts attributable to discontinued operations - - - 5 1 20.0 49 1 2.0 Amounts attributable to continuing operations $ 12,099 $ 2,176 18.0 % $ ( 7,293) $ ( 1,460) 20.0 % $ 5,287 $ 1,166 22.1 % * 2020 includes a net charge of $ 67 million related to the accrual of IRS interest, of which $ 139 million tax expense is reported in Uncertain tax positions and $ 72 million tax benefit is reported in Other. 2019 includes a net charge of $ 96 million related to the accrual of IRS interest, of which $ 207 million tax expense is reported in Uncertain tax positions and $( 111) million tax benefit is reported in Other. For the year ended December 31, 2021, the effective tax rate on income (loss) from continuing operations was 18.0 percent. The effective tax rate on income (loss) from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax benefits of $ 935 million associated with the release of reserves for uncertain tax positions, penalties and interest related to the recent completion of audit activity by the IRS, as well as release of reserves for uncertain tax positions and interest related to a New York State tax settlement based on the completion of recent audit activity, $ 109 million of reclassifications from AOCI to income (loss) from continuing operations related to the disposal of available for sale securities, $ 97 million related to income attributable to non-controlling interests, and $ 55 million associated with tax exempt income. These tax benefits were partially offset by a tax charge of $ 700 million associated with the establishment of U.S. federal valuation allowance related to certain tax attribute carryforwards, $ 134 million associated with the effect of foreign operations, and $ 37 million of state and local income taxes. Effect of foreign operations is primarily related to income and losses in our foreign operations taxed at statutory tax rates different than 21 percent, and foreign income subject to U.S. taxation. For the year ended December 31, 2020, the effective tax rate on income (loss) from continuing operations was 20.0 percent. The effective tax rate on income (loss) from continuing operations differs from the statutory tax rate of 21 percent primarily due to $ 186 million related to tax effects of the Majority Interest Fortitude Sale, tax charge of $ 150 million associated with the establishment of U.S. federal valuation allowance related to certain tax attribute carryforwards, a $ 165 million net charge associated with changes in uncertain tax positions primarily driven by the accrual of IRS interest, $ 76 million associated with the effect of foreign operations, and $ 35 million of excess tax charges related to share-based compensation payments recorded through the income statement. These tax charges were partially offset by tax benefits of $ 379 million associated with the remeasurement of tax liabilities, penalties and interest primarily related to the IRS audit settlement for tax years 1991-2006, $ 101 million of reclassifications from AOCI to income (loss) from continuing operations related to the disposal of available for sale securities, and $ 58 million associated with tax exempt income. We also recognized a $ 221 million tax charge associated with reduction of net operating loss deferred tax assets in certain foreign jurisdictions, with a corresponding decrease in the related deferred tax asset valuation allowance. Effect of foreign operations is primarily related to income and losses in our foreign operations taxed at statutory tax rates different than 21 percent, and foreign income subject to U.S. taxation. As discussed further below, AIG and the IRS entered into a binding settlement agreement related to tax years 1991-2006. The impact of receiving the final settlement agreement resulted in a remeasurement of tax principal, penalties and interest based on agreed upon settlement amounts. For the year ended December 31, 2019, the effective tax rate on income (loss) from continuing operations was 22.1 percent. The effective tax rate on income (loss) from continuing operations differs from the statutory tax rate of 21 percent primarily due to a $ 96 million net charge principally related to the accrual of IRS interest (including interest related to uncertain tax positions), $ 82 million associated with the effect of foreign operations, $ 37 million of tax charges and related interest associated with increases in uncertain tax positions primarily related to open tax issues and audits in state and local jurisdictions, $ 27 million of excess tax charges related to share-based compensation payments recorded through the income statement, and $ 15 million of non-deductible transfer pricing charges, partially offset by tax benefits of $ 113 million of reclassifications from AOCI to income (loss) from continuing operations related to the disposal of available for sale securities, $ 65 million associated with tax exempt income, and $ 44 million of valuation allowance activity related to certain foreign subsidiaries and state jurisdictions. Effect of foreign operations is primarily related to income and losses in our foreign operations taxed at statutory tax rates different than 21 percent, and foreign income subject to U.S. taxation. For the year ended December 31, 2021, we consider our foreign earnings with respect to certain operations in Canada, South Africa, Japan, Latin America, Bermuda as well as the European, Asia Pacific and Middle East regions to be indefinitely reinvested. These earnings relate to ongoing operations and have been reinvested in active business operations. While, following the enactment of the Tax Act, distributions from foreign affiliates are, generally, not subject to U.S. income tax, such distributions may be subject to non-U.S. withholding taxes. A deferred tax liability of approximately $ 74 million related to such withholding taxes has not been recorded for those foreign subsidiaries whose earnings are considered to be indefinitely reinvested. Additionally, as of December 31, 2021, we do not project any significant potential U.S. tax with respect to foreign currency gains or losses accumulated on previously taxed unremitted foreign earnings and therefore no deferred tax has been recorded. Deferred taxes, if necessary, have been provided on earnings of non-U.S. affiliates whose earnings are not indefinitely reinvested. Given the uncertainties around the impact from the COVID-19 pandemic, including the significant global economic slowdown, we continue to monitor and review its impact on our reinvestment considerations, including regulatory oversight in the relevant jurisdictions. The following table presents the components of the net deferred tax assets (liabilities): December 31, (in millions) 2021 2020 Deferred tax assets: Losses and tax credit carryforwards $ 7,291 $ 9,257 Basis differences on investments 2,944 3,718 Fortitude Re funds withheld embedded derivative 543 1,193 Life policy reserves 3,751 2,396 Accruals not currently deductible, and other 634 632 Investments in foreign subsidiaries - 146 Loss reserve discount 455 423 Loan loss and other reserves 509 560 Unearned premium reserve reduction 283 326 Fixed assets and intangible assets 1,262 1,077 Other 247 - Employee benefits 407 567 Total deferred tax assets 18,326 20,295 Deferred tax liabilities: Investments in foreign subsidiaries ( 15) - Deferred policy acquisition costs ( 2,054) ( 2,026) Unrealized gains related to available for sale debt securities ( 2,791) ( 4,328) Other - ( 221) Total deferred tax liabilities ( 4,860) ( 6,575) Net deferred tax assets before valuation allowance 13,466 13,720 Valuation allowance ( 1,987) ( 1,330) Net deferred tax assets (liabilities) $ 11,479 $ 12,390 The following table presents our U.S. consolidated federal income tax group tax losses and credits carryforwards as of December 31, 2021. Unlimited Carryforward Period and December 31, 2021 Carryforward Tax Carryforward Period Ending Tax Year (b) Periods (b) (in millions) Gross Effected 2022 2023 2024 2025 2026 2027 2028 - After Net operating loss carryforwards $ 27,597 $ 5,795 $ - $ - $ - $ - $ - $ - $ 5,795 Capital loss carryforwards $ - - - - - - - - - Foreign tax credit carryforwards 284 - 284 - - - - - Other carryforwards - - - - - - - - Total AIG U.S. consolidated federal income tax group tax losses and credits carryforwards on a U.S. GAAP basis (a) $ 6,079 $ - $ 284 $ - $ - $ - $ - $ 5,795 (a) Financial reporting basis reflects the impact of unrecognized tax benefits for tax years in which tax attributes can be realized through carryback upon settlement. (b) Carryforward periods are based on U.S. tax laws governing utilization of tax attributes. Expiration periods are based on the year the carryforward was generated. Assessment of Deferred Tax Asset Valuation Allowance The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed. Our framework for assessing the recoverability of the deferred tax asset requires us to consider all available evidence, including: the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; the sustainability of recent operating profitability of our subsidiaries; the predictability of future operating profitability of the character necessary to realize the net deferred tax asset, including forecasts of future income for each of our businesses and actual and planned business and operational changes; the carryforward periods for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and prudent and feasible actions and tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset. In performing our assessment of the recoverability of the deferred tax asset under this framework, we consider tax laws governing the utilization of the net operating loss, capital loss and foreign tax credit carryforwards in each applicable jurisdiction. Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards, even though the carryforward period for the foreign tax credit is shorter than for the net operating loss. Our U.S. consolidated federal income tax group includes both life companies and non-life companies. While the U.S. taxable income of our non-life companies can be offset by our net operating loss carryforwards, only a portion (no more than 35 percent) of the U.S. taxable income of our life companies can be offset by those net operating loss carryforwards. The remaining tax liability of our life companies can be offset by the foreign tax credit carryforwards. Accordingly, we are able to utilize both the net operating loss and foreign tax credit carryforwards concurrently. Recent events, including the impact of the recent completion of audit activity by the IRS, the COVID-19 pandemic, changes in target interest rates by the Board of Governors of the Federal Reserve System, and significant market volatility, continue to impact actual and projected results of our business operations as well as our views on potential effectiveness of certain prudent and feasible tax planning strategies. In order to demonstrate the predictability and sufficiency of future taxable income necessary to support the realizability of the net operating losses and foreign tax credit carryforwards, we have considered forecasts of future income for each of our businesses, including assumptions about future macro-economic and AIG-specific conditions and events, and any impact these conditions and events may have on our prudent and feasible tax planning strategies. We also subjected the forecasts to a variety of stresses of key assumptions and evaluated the effect on tax attribute utilization. The carryforward period of our foreign tax credit carryforwards runs through 2023. Carryforward periods for our net operating losses extend from 2028 forward. However, utilization of a portion of our net operating losses is limited under separate return limitation year rules. During the first quarter of 2021, the recent completion of audit activity by the IRS and subsequent release of certain reserves for uncertain tax positions resulted in an initial recognition of additional net operating loss and foreign tax credit carryforwards arising in prior years. Taking into account this initial recognition of additional carryforwards as well as other events and our analysis of their potential impact on utilization of our tax attributes, for the three months ended March 31, 2021, we recorded an increase of $ 700 million in valuation allowance related to a portion of our tax attribute carryforwards that are no longer more-likely-than-not to be realized. No additional activity was recorded for the remainder of 2021. Accordingly, during the year ended December 31, 2021, we have recorded a $ 700 million valuation allowance through continuing operations. As of December 31, 2021, the balance sheet reflects a valuation allowance of $ 850 million related to a portion of our tax attribute carryforwards that are no longer more-likely-than-not to be realized. Estimates of future taxable income, including income generated from prudent and feasible actions and tax planning strategies, impact of settlements with taxing authorities, and any changes to interpretations and assumptions related to the impact of the Tax Act could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Additionally, estimates of future taxable income, including prudent and feasible tax planning strategies, may be further impacted by market developments arising from the COVID-19 pandemic and uncertainty regarding its outcome. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period. Further, the planned separation of the Life and Retirement business from AIG, if completed, would result in tax deconsolidation of these entities from the AIG Consolidated Federal Tax Group and potentially impact our ability to utilize certain tax loss and credit carryforwards. Such potential impact could result in valuation allowance being established with respect to such tax attributes in the reporting period in which tax deconsolidation occurs. For the year ended December 31, 2021, recent changes in market conditions, including the COVID-19 pandemic and interest rate fluctuations, impacted the unrealized tax gains and losses in the available for sale securities portfolios of both our U.S. Life Insurance and non-life insurance companies, resulting in deferred tax liabilities related to net unrealized tax capital gains. As of December 31, 2021, based on all available evidence, we concluded that no valuation allowance is necessary related to our available for sale securities portfolios. For the year ended December 31, 2021, we recognized a net $ 18 million increase in deferred tax asset valuation allowance associated with certain foreign and state jurisdictions, primarily attributable to current year activity. The net increase also reflects an increase in valuation allowance due to a corresponding increase in foreign net operating loss deferred tax assets as a result of tax benefits expected to be realized in certain tax jurisdictions. The increase is partially offset by a decrease in deferred tax asset valuation allowance associated with certain foreign jurisdictions due to a corresponding reduction in foreign net operating loss deferred tax assets resulting from the expiration of a portion of net operating losses prior to utilization in Japan. The following table presents the net deferred tax assets (liabilities) at December 31, 2021 and 2020 on a U.S. GAAP basis: December 31, (in millions) 2021 2020 Net U.S. consolidated return group deferred tax assets $ 14,616 $ 16,502 Net deferred tax assets (liabilities) in AOCI ( 2,764) ( 4,259) Valuation allowance ( 859) ( 237) Subtotal 10,993 12,006 Net foreign, state and local deferred tax assets 1,849 1,711 Valuation allowance ( 1,128) ( 1,093) Subtotal 721 618 Subtotal - Net U.S., foreign, state and local deferred tax assets 11,714 12,624 Net foreign, state and local deferred tax liabilities ( 235) ( 234) Total AIG net deferred tax assets (liabilities) $ 11,479 $ 12,390 Deferred Tax Asset of U.S. Consolidated FEDERAL Income Tax Group At December 31, 2021 and 2020, our U.S. consolidated federal income tax group had net deferred tax assets after valuation allowance of $ 11.0 billion and $ 12.0 billion, respectively. At December 31, 2021 and 2020, our U.S. consolidated income tax group had valuation allowances of $ 859 million and $ 237 million, respectively. During the year ended December 31, 2021, we recorded an increase of $ 700 million in valuation allowance related to a portion of our tax attribute carryforwards that are no longer more-likely-than-not to be realized. The valuation allowance activity in 2021 also includes a decrease in valuation allowance due to a corresponding reduction in deferred tax asset resulting from disallowed deductions from prior tax years. Deferred Tax ASSET – Foreign, State and Local At December 31, 2021 and 2020, we had net deferred tax assets (liabilities) of $ 486 million and $ 384 million, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. At both December 31, 2021 and 2020, we had deferred tax asset valuation allowances of $ 1.1 billion related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. We maintained these valuation allowances following our conclusion that we could not demonstrate that it was more likely than not that the related deferred tax assets will be realized. This was primarily due to factors such as cumulative losses in recent years and the inability to demonstrate profits within the specific jurisdictions over the relevant carryforward periods. Tax Examinations and Litigation We file a consolidated U.S. federal income tax return with our eligible U.S. subsidiaries. Income earned by subsidiaries operating outside the U.S. is taxed, and income tax expense is recorded, based on applicable U.S. and foreign laws. We are currently under examination by the IRS for the tax years 2011 through 2013. In September 2020, we received the IRS Revenue Agent Report containing agreed and disagreed issues for the audit of tax years 2007-2010. In October 2020, we filed a protest of the disagreed issues with the IRS Independent Office of Appeals (IRS Appeals). In March 2021, the IRS audit team issued their rebuttal to the protest of disagreed issues to IRS Appeals. We had an IRS Appeals conference in October 2021 and are continuing to engage in the Appeals process. In 2009, after paying amounts due on a statutory notice of deficiency related to the disallowance of foreign tax credits associated with cross border financing transactions, we filed a refund lawsuit in the Southern District of New York (Southern District) with respect to tax year 1997. During the fourth quarter of 2020, the parties executed a binding settlement agreement with respect to the underlying issues in the lawsuit. On October 22, 2020, the Southern District dismissed the case based upon the settlement reached between AIG and the government. The parties continue to review the related interest calculations based on the settlement agreement, which will become due upon the IRS’ issuance of a Notice and Demand for Payment. During June 2021 and October 2021, AIG made additional payments of $ 354 million and $ 10 million to the U.S. Treasury with respect to this matter. Accounting For Uncertainty in Income Taxes The following table presents a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits: Years Ended December 31, (in millions) 2021 2020 2019 Gross unrecognized tax benefits, beginning of year $ 2,343 $ 4,762 $ 4,709 Increases in tax positions for prior years 22 45 51 Decreases in tax positions for prior years ( 1,233) ( 131) ( 1) Increases in tax positions for current year 37 13 4 Settlements ( 12) ( 2,346) ( 1) Gross unrecognized tax benefits, end of year $ 1,157 $ 2,343 $ 4,762 At December 31, 2021, 2020 and 2019, our unrecognized tax benefits, excluding interest and penalties, were $ 1.2 billion, $ 2.3 billion and $ 4.8 billion, respectively. The activity for the year ended December 31, 2021 is primarily attributable to the recent completion of audit activity by the IRS and New York State. The activity for the year ended December 31, 2020 includes the impact of the binding settlement agreement with the IRS for tax years 1991-2006 with respect to cross border financing transactions. After remeasurement based on the settlement terms, the remaining balances of the unrecognized tax benefits, penalties and interest related to the 1991-2006 tax years are no longer presented as uncertain tax positions and were reclassified as prior year current tax payable. The activity for the year ended December 31, 2019 includes increases primarily related to open tax issues and audits in state and local jurisdictions. At December 31, 2021, 2020 and 2019, our unrecognized tax benefits related to tax positions that, if recognized, would not affect the effective tax rate because they relate to such factors as the timing, rather than the permissibility, of the deduction were $ 22 million, $ 44 million and $ 43 million, respectively. Accordingly, at December 31, 2021, 2020 and 2019, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $ 1.1 billion, $ 2.3 billion and $ 4.7 billion, respectively. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At December 31, 2021, 2020, and 2019, we had accrued liabilities of $ 69 million, $ 286 million, and $ 2.4 billion, respectively, for the payment of interest (net of the federal benefit) and penalties. For the years ended December 31, 2021, 2020, and 2019, we accrued expense (benefit) of $( 207) million, $ 128 million and $ 236 million, respectively, for the payment of interest and penalties. The activity in 2021 is primarily related to the recent completion of audit activity by the IRS and New York State. The activity in 2020 also includes a net decrease of $ 2.2 billion, which is attributable to decreases and settlements of interest and penalties associated with the completion of the IRS examination for tax years 1991-2006. We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next 12 months by as much as $ 15 million, principally as a result of potential resolutions or settlements of prior years’ tax items. The prior years’ tax items include unrecognized tax benefits related to the deductibility of certain expenses. Listed below are the tax years that remain subject to examination by major tax jurisdictions: At December 31, 2021 Open Tax Years Major Tax Jurisdiction United States 2007- 2020 Australia 2017- 2020 Canada 2014- 2020 France 2019- 2020 Japan 2015- 2020 Korea 2014- 2020 Singapore 2017- 2020 United Kingdom 2020- 2020 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 22. Subsequent Events DIVIDENDS DECLARED On February 16, 2022, our Board of Directors declared a cash dividend on AIG Common Stock of $ 0.32 per share, payable on March 31, 2022 to shareholders of record on March 17, 2022. On February 16, 2022, our Board of Directors declared a cash dividend on AIG’s Series A Preferred Stock of $ 365.625 per share, payable on March 15, 2022 to holders of record on February 28, 2022. REPURCHASE OF COMMON STOCK Pursuant to an Exchange Act Rule 10b5-1 repurchase plan, from January 1, 2022 to February 15, 2022, we repurchased approximately 9 million shares of AIG Common Stock for an aggregate purchase price of approximately $ 522 million. As of February 15, 2022, approximately $ 3.4 billion remained under our share repurchase authorization. |
Schedule I Summary of Investmen
Schedule I Summary of Investments - Other than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Schedule I Summary of Investments - Other than Investments in Related Parties | |
Schedule I Summary of Investments - Other than Investments in Related Parties | Summary of Investments – Other than Investments in Related Parties Schedule I Amount at At December 31, 2021 which shown in (in millions) Cost (a) Fair Value the Balance Sheet Fixed maturities: U.S. government and government sponsored entities $ 9,624 $ 9,944 $ 9,944 Obligations of states, municipalities and political subdivisions 12,858 14,625 14,625 Non-U.S. governments 15,934 16,406 16,406 Public utilities 22,502 24,252 24,252 All other corporate debt securities 141,612 152,405 152,405 Mortgage-backed, asset-backed and collateralized 62,959 65,848 65,848 Total fixed maturity securities 265,489 283,480 283,480 Equity securities and mutual funds: Common stock: Public utilities 1 1 1 Banks, trust and insurance companies 158 158 158 Industrial, miscellaneous and all other 332 332 332 Total common stock 491 491 491 Preferred stock 10 10 10 Mutual funds 238 238 238 Total equity securities and mutual funds 739 739 739 Mortgage and other loans receivable, net of allowance 46,048 48,058 46,048 Other invested assets 16,447 15,667 15,668 Short-term investments, at cost (approximates fair value) 13,357 13,357 13,357 Derivative assets (b) 843 843 843 Total investments $ 342,923 $ 362,144 $ 360,135 (a) Original cost of fixed maturities is reduced by repayments and adjusted for amortization of premiums or accretion of discounts. (b) The balance is reported in Other assets. |
Schedule II Condensed Financial
Schedule II Condensed Financial Information of Registrant - Parent Company Only | 12 Months Ended |
Dec. 31, 2021 | |
INFORMATION PROVIDED IN CONNECTION WITH OUTSTADING DEBT | |
Schedule II Condensed Financial Information of Registrant - Parent Company Only | Condensed Financial Information of Registrant Balance Sheets – Parent Company Only Schedule II December 31, (in millions) 2021 2020 Assets: Short-term investments $ 4,332 $ 6,918 Other investments 6,671 4,227 Total investments 11,003 11,145 Cash 3 3 Loans to subsidiaries (a) 45,415 36,981 Due from affiliates - net (a) 1,941 1,531 Intercompany tax receivable (a) 426 978 Deferred income taxes 5,845 8,525 Investment in consolidated subsidiaries (a) 29,713 41,294 Other assets (b) 406 313 Total assets $ 94,752 $ 100,770 Liabilities: Due to affiliates (a) $ 2,992 $ 3,224 Intercompany tax payable (a) 2,193 2,669 Notes and bonds payable 19,633 23,068 Junior subordinated debt 1,164 1,561 Series AIGFP matched notes and bonds payable 18 21 Loans from subsidiaries (a) 739 735 Other liabilities 2,057 3,130 Total liabilities 28,796 34,408 AIG Shareholders’ equity: Preferred stock 485 485 Common stock 4,766 4,766 Treasury stock ( 51,618) ( 49,322) Additional paid-in capital 81,851 81,418 Retained earnings 23,785 15,504 Accumulated other comprehensive income 6,687 13,511 Total AIG shareholders’ equity 65,956 66,362 Total liabilities and equity $ 94,752 $ 100,770 (a) Eliminated in consolidation. (b) At December 31, 2021 and 2020, included restricted cash of $ 1 million and $ 1 million, respectively. See accompanying Notes to Condensed Financial Information of Registrant. Condensed Financial Information of Registrant (Continued) Statements of Income – Parent Company Only Schedule II Years Ended December 31, (in millions) 2021 2020 2019 Revenues: Equity in undistributed net income (loss) of consolidated subsidiaries (a) $ ( 3,370) $ ( 2,569) $ 44 Dividend income from consolidated subsidiaries (a) 14,699 1,797 3,819 Interest income (b) 169 348 1,034 Net realized losses ( 1) ( 149) ( 3) Other income (loss) ( 3) ( 1) 125 Expenses: Interest expense 948 1,043 985 Net loss on extinguishment of debt 304 2 - Net (gain) loss on divestitures ( 10) 4,010 1 Other expenses 1,214 980 728 Income (loss) from continuing operations before income tax benefit 9,038 ( 6,609) 3,305 Income tax benefit ( 350) ( 667) ( 45) Net income (loss) 9,388 ( 5,942) 3,350 Loss from discontinued operations - ( 2) ( 2) Net income (loss) attributable to AIG Parent Company $ 9,388 $ ( 5,944) $ 3,348 (a) Eliminated in consolidation. (b) Includes interest income on intercompany borrowings of $ 131 million, $ 295 million and $ 904 million on December 31, 2021, 2020 and 2019, respectively, eliminated in consolidation. See accompanying Notes to Condensed Financial Information of Registrant. Condensed Financial Information of Registrant (Continued) Statements of Comprehensive Income – Parent Company Only Schedule II Years Ended December 31, (in millions) 2021 2020 2019 Net income (loss) $ 9,388 $ ( 5,944) $ 3,348 Other comprehensive income (loss) ( 5,725) 8,529 6,395 Total comprehensive income attributable to AIG $ 3,663 $ 2,585 $ 9,743 See accompanying Notes to Condensed Financial Information of Registrant. Condensed Financial Information of Registrant (Continued) Statements of Cash Flows – Parent Company Only Schedule II Years Ended December 31, (in millions) 2021 2020 2019 Net cash provided by (used in) operating activities $ 3,837 $ ( 30) $ 3,484 Cash flows from investing activities: Sales and maturities of investments 4,228 5,181 2,313 Sales of divested businesses - 2,225 - Purchase of investments ( 5,761) ( 3,250) ( 2,957) Net change in short-term investments 2,647 ( 3,559) ( 2,170) Contributions from (to) subsidiaries - net 403 ( 964) ( 237) Loans to subsidiaries - net ( 104) ( 22) 513 Other, net ( 41) ( 402) 67 Net cash provided by (used in) investing activities 1,372 ( 791) ( 2,471) Cash flows from financing activities: Issuance of long-term debt - 4,065 595 Repayments of long-term debt ( 3,703) ( 1,696) ( 1,006) Issuance of preferred stock - - 485 Cash dividends paid on preferred stock ( 29) ( 29) ( 22) Cash dividends paid on common stock ( 1,083) ( 1,103) ( 1,114) Loans from subsidiaries - net 3 16 93 Purchase of common stock ( 2,598) ( 500) - Other, net 2,201 ( 33) ( 66) Net cash provided by (used in) financing activities ( 5,209) 720 ( 1,035) Change in cash and restricted cash - ( 101) ( 22) Cash and restricted cash at beginning of year 4 105 127 Cash and restricted cash at end of year $ 4 $ 4 $ 105 Supplementary disclosure of cash flow information: Years Ended December 31, (in millions) 2021 2020 2019 Cash $ 3 $ 3 $ 2 Restricted cash included in Short-term investments - - 102 Restricted cash included in Other assets 1 1 1 Total cash and restricted cash shown in Statements of Cash Flows – Parent Company Only $ 4 $ 4 $ 105 Cash (paid) received during the period for: Interest: Third party $ ( 941) $ ( 1,014) $ ( 941) Intercompany 1 - ( 3) Taxes: Income tax authorities ( 494) ( 466) ( 11) Intercompany 1,950 1,592 1,179 Intercompany non-cash financing and investing activities: Capital contributions 2,284 333 15 Return of capital 1,365 - 15 Dividend received in the form of intercompany note 8,300 - - Dividends received in the form of securities 1,289 879 702 See accompanying Notes to Condensed Financial Information of Registrant. Notes to Condensed Financial Information of Registrant American International Group, Inc.’s (the Registrant) investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The accompanying condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto of American International Group, Inc. and subsidiaries included in the Registrant’s 2021 Annual Report on Form 10-K for the year ended December 31, 2021 (Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 17, 2022. The Registrant includes in its Statement of Income dividends from its subsidiaries and equity in undistributed income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries. The five-year debt maturity schedule is incorporated by reference from Note 14 to Consolidated Financial Statements. The Registrant files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Registrant and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated Federal income taxes. Amounts allocated to the subsidiaries under the written agreement are included in Due from affiliates in the accompanying Condensed Balance Sheets. Income taxes in the accompanying Condensed Balance Sheets are composed of the Registrant’s current and deferred tax assets, the consolidated group’s current income tax receivable and deferred taxes related to tax attribute carryforwards of AIG’s U.S. consolidated federal income tax group. For additional information see Note 21 to the Consolidated Financial Statements. The consolidated U.S. deferred tax asset for net operating loss and tax credit carryforwards are recorded by the Parent Company, which files the consolidated U.S. Federal income tax return, and are not allocated to its subsidiaries. Generally, as, and if, the consolidated net operating losses and other tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries. |
Schedule III Supplementary Insu
Schedule III Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2021 | |
Schedule III Supplementary Insurance Information | |
Schedule III Supplementary Insurance Information | Supplementary Insurance Information Schedule III At December 31, 2021 and 2020 Liability for Unpaid Losses and Loss Deferred Adjustment Policy Policy Expenses, and Acquisition Future Policy Unearned Contract Segment (in millions) Costs Benefits Premiums Claims 2021 General Insurance $ 2,428 $ 75,500 $ 19,209 $ - Life and Retirement 8,086 57,749 68 1,460 Other Operations (a) - 5,727 36 89 $ 10,514 $ 138,976 $ 19,313 $ 1,549 2020 General Insurance $ 2,489 $ 74,315 $ 18,595 $ - Life and Retirement 7,316 54,645 57 1,336 Other Operations (a) - 5,638 8 42 $ 9,805 $ 134,598 $ 18,660 $ 1,378 For the years ended December 31, 2021, 2020 and 2019 Losses Amortization Premiums and Loss of Deferred and Net Expenses Policy Other Net Policy Investment Incurred, Acquisition Operating Premiums Segment (in millions) Fees Income Benefits Costs Expenses Written (b) 2021 General Insurance $ 25,057 $ 3,304 $ 16,097 $ 3,530 $ 4,375 $ 25,890 Life and Retirement 9,080 9,521 11,944 973 2,636 - Other Operations (a) 173 1,787 ( 96) 70 1,779 527 $ 34,310 $ 14,612 $ 27,945 $ 4,573 $ 8,790 $ 26,417 2020 General Insurance $ 23,662 $ 2,925 $ 16,803 $ 3,538 $ 4,345 $ 22,959 Life and Retirement 7,498 8,881 10,435 632 2,522 - Other Operations (a) 280 1,825 1,190 41 1,529 497 $ 31,440 $ 13,631 $ 28,428 $ 4,211 $ 8,396 $ 23,456 2019 General Insurance $ 26,438 $ 3,444 $ 17,246 $ 4,482 $ 4,621 $ 25,092 Life and Retirement 6,712 8,733 9,427 672 2,542 - Other Operations (a) 426 2,442 2,561 10 1,374 362 $ 33,576 $ 14,619 $ 29,234 $ 5,164 $ 8,537 $ 25,454 (a) Includes consolidation and elimination entries and reconciling items from adjusted pre-tax income to pre-tax income. See Note 3 to the Consolidated Financial Statements. (b) Balances reflect the segment changes discussed in Note 3 to the Consolidated Financial Statements. |
Schedule IV Reinsurance
Schedule IV Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Schedule IV Reinsurance | |
Schedule IV Reinsurance | Reinsurance Schedule IV At December 31, 2021, 2020 and 2019 and for the years then ended Percent of Ceded to Assumed Amount Gross Other from Other Assumed (in millions) Amount Companies Companies Net Amount to Net 2021 Long-duration insurance in force $ 1,280,090 $ 363,008 $ 192 $ 917,274 - % Premiums Earned: General Insurance companies $ 30,279 $ 11,301 $ 6,640 $ 25,618 25.9 % Life and Retirement companies 4,596 1,220 2,265 5,641 40.2 Total $ 34,875 $ 12,521 $ 8,905 $ 31,259 28.5 % 2020 Long-duration insurance in force * $ 1,243,389 $ 349,453 $ 225 $ 894,161 - % Premiums Earned: General Insurance companies $ 28,596 $ 10,435 $ 5,984 $ 24,145 24.8 % Life and Retirement companies 4,381 1,061 1,058 4,378 24.2 Total $ 32,977 $ 11,496 $ 7,042 $ 28,523 24.7 % 2019 Long-duration insurance in force $ 1,185,771 $ 264,732 $ 279 $ 921,318 - % Premiums Earned: General Insurance companies $ 30,017 $ 9,526 $ 6,395 $ 26,886 23.8 % Life and Retirement companies 4,363 916 228 3,675 6.2 Total $ 34,380 $ 10,442 $ 6,623 $ 30,561 21.7 % * The Ceded to other companies and Net amount for Long-duration insurance in force in 2020 have been revised from $ 292.5 billion to $ 349.5 billion and from $ 951.1 billion to $ 894.2 billion, respectively to correct Long-duration insurance in force in 2020. These corrections have no impact on AIG’s consolidated financial statements and are not considered material to previously issued financial statements. |
Schedule V Valuation and Qualif
Schedule V Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule V Valuation and Qualifying Accounts | Valuation and Qualifying Accounts Schedule V For the years ended December 31, 2021, 2020 and 2019 Initial Balance, Allowance Charged to Beginning Upon CECL Costs and Other Balance, (in millions) of year Adoption Expenses Charge Offs Divestitures Changes * End of year 2021 Allowance for mortgage and other loans receivable $ 814 $ - $ ( 164) $ ( 2) $ ( 19) $ - $ 629 Allowance for premiums and insurances balances receivable 205 - ( 15) ( 2) - ( 3) 185 Allowance for reinsurance assets 326 - 24 ( 17) - - 333 Federal and foreign valuation allowance for deferred tax assets 1,330 - 718 - - ( 61) 1,987 2020 Allowance for mortgage and other loans receivable $ 438 $ 318 $ 75 $ ( 17) $ - $ - $ 814 Allowance for premiums and insurances balances receivable 178 34 6 ( 12) - ( 1) 205 Allowance for reinsurance assets 151 172 12 ( 9) - - 326 Federal and foreign valuation allowance for deferred tax assets 1,425 - ( 65) - - ( 30) 1,330 2019 Allowance for mortgage and other loans receivable $ 397 $ - $ 46 $ ( 5) $ - $ - $ 438 Allowance for premiums and insurances balances receivable 216 - ( 25) ( 23) - 10 178 Allowance for reinsurance assets 140 - 20 ( 11) - 2 151 Federal and foreign valuation allowance for deferred tax assets 1,779 - ( 44) - - ( 310) 1,425 * Includes recoveries of amounts previously charged off and reclassifications to/from other accounts. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
BASIS OF PRESENTATION | |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of: loss reserves; future policy benefit reserves for life and accident and health insurance contracts; liabilities for guaranteed benefit features of variable annuity, fixed annuity and fixed index annuity products; embedded derivative liabilities for fixed index annuity and life products; estimated gross profits to value deferred acquisition costs and unearned revenue for investment-oriented products; reinsurance assets, including the allowance for credit losses and disputes; goodwill impairment; allowance for credit losses on certain investments, primarily on loans and available for sale fixed maturity securities; legal contingencies; fair value measurements of certain financial assets and financial liabilities; and income taxes, in particular the recoverability of our deferred tax asset and establishment of provisions for uncertain tax positions. These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Investments | Short-term investments Short-term investments include highly liquid securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. Securities included within short-term investments are stated at estimated fair value, while other investments included within short-term investments are stated at amortized cost, which approximates estimated fair value. Fixed Maturity Securities Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or are measured at fair value at our election. None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2021 or 2020. Unrealized gains and losses from available for sale investments in fixed maturity securities carried at fair value were reported as a separate component of AOCI, net of policy related amounts and deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity securities measured at fair value at our election are reflected in Net investment income. Investments in fixed maturity securities are recorded on a trade-date basis. Interest income is recognized using the effective yield method and reflects amortization of premium and accretion of discount. Premiums and discounts arising from the purchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain structured securities, recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that are not high credit quality, the structured securities yields are based on expected cash flows which take into account both expected credit losses and prepayments. An allowance for credit losses is not established upon initial recognition of the asset (unless the security is determined to be a purchased credit deteriorated (PCD) asset which is discussed in more detail below). Subsequently, differences between actual and expected cash flows and changes in expected cash flows are recognized as adjustments to the allowance for credit losses. Changes that cannot be reflected as adjustments to the allowance for credit losses are accounted for as prospective adjustments to yield. Other Invested Assets Carried at Fair Value Certain hedge funds, private equity funds, and other investment partnerships for which we have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income. Other Invested Assets – Equity Method Investments We account for hedge funds, private equity funds, affordable housing partnerships and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating and financial policies, or we have elected the fair value option. Under the equity method of accounting, our carrying amount generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income. In applying the equity method of accounting, we consistently use the most recently available financial information provided by the general partner or manager of each of these investments. Hedge funds are reported as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag. The financial statements of these investees are generally audited annually. Other Investments Also included in Other invested assets are real estate held for investment. These investments are reported at cost, less depreciation and are subject to impairment review, as discussed below. Net Investment Income Net investment income represents income primarily from the following sources: Interest income and related expenses, including amortization of premiums and accretion of discounts with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable. Dividend income from common and preferred stocks. Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option. Earnings from alternative investments. Prepayment premiums. Net Realized Gains and Losses Net realized gains and losses are determined by specific identification. The net realized gains and losses are generated primarily from the following sources: Sales of available for sale fixed maturity securities, real estate and other alternative investments. Reductions to the amortized cost basis of available for sale fixed maturity securities that have been written down due to our intent to sell them or it being more likely than not that we will be required to sell them. Changes in the allowance for credit losses on bonds available for sale, mortgage and other loans receivable, and loans commitments. Changes in fair value of free standing and embedded derivatives, including changes in the non-performance adjustment, except for those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized gains (losses). Foreign exchange gains and losses resulting from foreign currency transactions. Changes in fair value of the embedded derivative related to the Fortitude Re funds withheld assets. Evaluating Investments for AN ALLOWANCE FOR CREDIT LOSSES/OTHER-than-TEMPORARY IMPAIRMENTS Fixed Maturity Securities Subsequent to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020 If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and if the fair value of the security is below amortized cost, an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to Net realized gains (losses). No allowance is established in these situations and any previously recorded allowance is reversed. The new cost basis is not adjusted for subsequent increases in estimated fair value . When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. For fixed maturity securities for which a decline in the fair value below the amortized cost is due to credit related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding charge to Net realized gains (losses). The allowance for credit losses is limited to the difference between amortized cost and fair value. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not associated with credit related factors is presented in unrealized appreciation (depreciation) of fixed maturity securities on which an allowance for credit losses was previously recognized (a separate component of AOCI). Accrued interest is excluded from the measurement of the allowance for credit losses. When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CDO, ABS) management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class: Current delinquency rates; Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Expected prepayment speeds. When estimating future cash flows for corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers: Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Scenarios specific to the issuer and the security, which may also include estimates of outcomes of corporate restructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets. We consider severe price declines in our assessment of potential credit impairments. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. Under the current expected credit loss (CECL) model, credit losses are reassessed each period. The allowance for credit losses and the corresponding charge to Net realized gains (losses) can be reversed if conditions change, however, the allowance for credit losses will never be reduced below zero. When we determine that all or a portion of a fixed maturity security is uncollectable, the uncollectable amortized cost amount is written off with a corresponding reduction to the allowance for credit losses. If we collect cash flows that were previously written off, the recovery is recognized by recording a gain in Net realized gains (losses). Prior to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020 If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, an other-than-temporary impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized losses. When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. For fixed maturity securities for which a credit impairment has occurred, the amortized cost is written down to the estimated recoverable value with a corresponding charge to realized losses. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not related to a credit impairment is presented in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were recognized (a separate component of accumulated other comprehensive income). We consider severe price declines in our assessment of potential credit impairments. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. In periods subsequent to the recognition of an other-than-temporary impairment charge for available for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and the expected undiscounted recoverable value over the remaining expected holding period of the security. Other Invested Assets Our equity method investments in private equity funds, hedge funds and other entities are evaluated for impairment each reporting period. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investments and specific inherent risks. Such risks may evolve based on the nature of the underlying investments. Our investments in real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compare expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings. Purchased Credit Deteriorated Securities We purchase certain RMBS securities that have experienced more-than-insignificant deterioration in credit quality since origination. These are referred to as PCD assets. At the time of purchase an allowance is recognized for these PCD assets by adding it to the purchase price to arrive at the initial amortized cost. There is no credit loss expense recognized upon acquisition of a PCD asset. When determining the initial allowance for credit losses, management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs: Current delinquency rates; Expected default rates and the timing of such defaults; Loss severity and the timing of any recovery; and Expected prepayment speeds. Subsequent to the acquisition date, the PCD assets follow the same accounting as other structured securities that are not high credit quality. Secured Financing and Similar Arrangements We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. Our secured financing transactions also include those that involve the transfer of securities to financial institutions in exchange for cash (securities lending agreements). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts plus accrued interest, other than those that are accounted for at fair value. Pledged collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the amounts borrowed during the life of the transactions. In the event of a decline in the fair value of the pledged collateral under these secured financing transactions, we may be required to transfer cash or additional securities as pledged collateral under these agreements. At the termination of the transactions, we and our counterparties are obligated to return the amounts borrowed and the securities transferred, respectively. We also enter into reverse repurchase agreements, which are accounted for as secured financing transactions and reported as short-term investments or other assets, depending on their terms. These agreements are recorded at their contracted resale amounts plus accrued interest, other than those that are accounted for at fair value. In all reverse repurchase transactions, we take possession of or obtain a security interest in the related securities, and we have the right to sell or repledge this collateral received. Mortgage and other loans receivable include commercial mortgages, residential mortgages, life insurance policy loans, commercial loans, and other loans and notes receivable. Commercial mortgages, residential mortgages, commercial loans, and other loans and notes receivable are carried at unpaid principal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned. Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method. Premiums and discounts on purchased residential mortgages are also amortized to income as an adjustment to earnings using the interest method. Life insurance policy loans are carried at unpaid principal balances. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy. Methodology Used to Estimate the Allowance for Credit Losses Subsequent to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020 At the time of origination or purchase, an allowance for credit losses is established for mortgage and other loan receivables and is updated each reporting period. Changes in the allowance for credit losses are recorded in realized losses. This allowance reflects the risk of loss, even when that risk is remote, that is expected over the remaining contractual life of the loan. The allowance for credit losses considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts of future economic conditions. We revert to historical information when we determine that we can no longer reliably forecast future economic assumptions. The allowances for the commercial mortgage loans and residential mortgage loans are estimated utilizing a probability of default and loss given default model. Loss rate factors are determined based on historical data and adjusted for current and forecasted information. The loss rates are applied based on individual loan attributes and considering such data points as loan-to-value ratios, FICO scores, and debt service coverage. The estimate of credit losses also reflects management’s assumptions on certain macroeconomic factors that include, but are not limited to, gross domestic product growth, employment, inflation, housing price index, interest rates and credit spreads. Accrued interest is excluded from the measurement of the allowance for credit losses and accrued interest is reversed through interest income once a loan is placed on nonaccrual. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance. We also have off-balance sheet commitments related to our commercial mortgage loans. The liability for expected credit losses related to these commercial mortgage loan commitments is reported in Other liabilities in the Consolidated Balance Sheets. When a commitment is funded, we record a loan receivable and reclassify the liability for expected credit losses related to the commitment into loan allowance for expected credit losses. Other changes in the liability for expected credit losses on loan commitments are recorded in Net realized gains (losses) in the Consolidated Statements of Income (Loss). Prior to the adoption of the Financial Instruments Credit Losses Standard on January 1, 2020 Mortgage and other loans receivable are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. Impairment of commercial mortgages is typically determined using the fair value of collateral while impairment of other loans is typically determined using the present value of cash flows or the loan’s observable market price. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on statistical models primarily driven by past-due status, debt service coverage, loan-to-value ratio, property type and location, loan term, profile of the borrower and of the major property tenants, and loan seasoning. When all or a portion of a loan is deemed uncollectable, the uncollectable portion of the carrying amount of the loan is charged off against the allowance. |
Reinsurance | In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. In addition, our General Insurance subsidiaries assume reinsurance from other insurance companies. We determine the portion of the incurred but not reported (IBNR) loss that will be recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss adjustment expenses incurred, ceded unearned premiums and ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for credit losses and disputes requires judgment for which key inputs typically include historical trends regarding uncollectible balances, disputes and credit events as well as specific reviews of balances in dispute or subject to credit impairment. The allowance for credit losses and disputes on reinsurance assets was $ 333 million and $ 326 million at December 31, 2021 and 2020, respectively. Changes in the allowance for credit losses and disputes on reinsurance assets are reflected in Policyholder benefits and losses incurred within the Consolidated Statements of Income (Loss). Short-Duration Reinsurance Short-duration reinsurance is effected under reinsurance treaties and by negotiation on individual risks. Certain of these reinsurance arrangements consist of excess of loss contracts that protect us against losses above stipulated amounts. Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection received. Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of Reinsurance assets. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsurers. Any subsequent differences arising on such estimates are recorded in the periods in which they are determined. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premiums. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsureds. Any subsequent differences arising on such estimates are recorded in the periods in which they are determined. For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. Retroactive reinsurance agreements are reinsurance agreements under which our reinsurer agrees to reimburse us as a result of past insurable events. For these agreements, the excess of the amounts ultimately collectible under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves. The amount of the deferral is recalculated each period based on loss payments and updated estimates. If the consideration paid exceeds the ultimate losses collectible under the agreement, the net loss on the agreement is recognized in income immediately. Ceded loss reserves under retroactive agreements were $ 16.8 billion and $ 18.9 billion, and the deferred gain liability was $ 1.3 billion and $ 1.7 billion, as of December 31, 2021 and 2020, respectively. The effect on income from amortization of the deferred gain was $ 191 million, $ 237 million and $ 219 million for the years ended December 31, 2021, 2020 and 2019, respectively. Long-Duration Reinsurance Long-duration reinsurance is effected principally under yearly renewable term (YRT) treaties, along with a large modco treaty with a former affiliate, Fortitude Re, that was deconsolidated following the Majority Interest Fortitude Sale. This modco treaty reinsures the majority of our long-duration run-off business. The premiums with respect to YRT treaties are earned over the contract period in proportion to the protection provided, while ceded premiums related to modco treaties are recognized when due. Amounts recoverable on YRT treaties are recognized when claims are incurred on the reinsured policies and are presented as a component of reinsurance assets. Amounts recoverable from reinsurers related to coinsurance or modco contracts are estimated in a manner consistent with the assumptions used for the underlying policy benefits. Amounts recoverable from reinsurers are presented as a component of Reinsurance assets. Sale of Fortitude Holdings On June 2, 2020, we completed the Majority Interest Fortitude Sale. AIG established Fortitude Re, a wholly owned subsidiary of Fortitude Holdings, in 2018 in a series of reinsurance transactions related to AIG’s Run-Off operations. As of December 31, 2021, approximately $ 29.6 billion of reserves from AIG’s Life and Retirement Run-Off Lines and approximately $ 3.8 billion of reserves from AIG’s General Insurance Run-Off Lines, related to business written by multiple wholly-owned AIG subsidiaries, had been ceded to Fortitude Re under these reinsurance transactions. As of closing of the Majority Interest Fortitude Sale, these reinsurance transactions are no longer considered affiliated transactions and Fortitude Re is the reinsurer of the majority of AIG’s Run-Off operations. Additionally, the Majority Interest Fortitude Sale was subject to a post-closing purchase price adjustment pursuant to which AIG would pay Fortitude Re for certain adverse development in property casualty related reserves, based on an agreed methodology, that may occur through December 31, 2023, up to a maximum payment of $ 500 million. Effective in the second quarter of 2021, AIG, Fortitude Holdings, Carlyle FRL, T&D and Carlyle amended the Purchase Agreement to finalize the post-closing purchase price adjustment for adverse reserve development. As a result of this amendment, during 2021, AIG recorded a $ 21 million benefit through Policyholder benefits and losses incurred and eliminated further net exposure to adverse development on the reserves ceded to Fortitude Re. These reinsurance transactions between AIG and Fortitude Re were structured as modco and loss portfolio transfer arrangements with funds withheld (funds withheld). In modco and funds withheld arrangements, the investments supporting the reinsurance agreements, and which reflect the majority of the consideration that would be paid to the reinsurer for entering into the transaction, are withheld by, and therefore continue to reside on the balance sheet of, the ceding company (i.e., AIG) thereby creating an obligation for the ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date. Additionally, as AIG maintains ownership of these investments, AIG will maintain its existing accounting for these assets (e.g., the changes in fair value of available for sale securities will be recognized within Other comprehensive income (loss)). As a result of the deconsolidation resulting from the Majority Interest Fortitude Sale, AIG has established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing reserves for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative and changes in fair value of the embedded derivative related to the funds withheld payable are recognized in earnings through Net realized gains (losses). This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements. There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re. The following summarizes the composition of the pool of assets: December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Value Value Value Value Corresponding Accounting Policy Fixed maturity securities - available for sale (a) $ 31,815 $ 31,815 $ 36,047 $ 36,047 Fair value through other comprehensive income (loss) Fixed maturity securities - fair value option 1,983 1,983 200 200 Fair value through net investment income Commercial mortgage loans 3,637 3,859 3,679 4,010 Amortized cost Real estate investments 201 395 358 585 Amortized cost Private equity funds / hedge funds 1,606 1,606 1,168 1,168 Fair value through net investment income Policy loans 380 380 413 413 Amortized cost Short-term investments 50 50 34 34 Fair value through net investment income Funds withheld investment assets 39,672 40,088 41,899 42,457 Derivative assets, net (b) 81 81 ( 1) ( 1) Fair value through net realized gains (losses) Other (c) 602 602 604 604 Amortized cost Total $ 40,355 $ 40,771 $ 42,502 $ 43,060 (a) The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $( 2.2) billion ($( 1.8) billion after-tax) for 2021 and $ 1.0 billion ($ 812 million after-tax) during the post deconsolidation period (June 2, 2020-December 31, 2020). (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 $ 389 million and $ 10 million, respectively, as of December 31, 2021. The derivative assets supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 357 million as of December 31, 2020. These derivative assets and liabilities are fully collateralized either by cash or securities. (c) Primarily comprised of Cash and Accrued investment income. The impact of the funds withheld arrangements with Fortitude Re was as follows: Years Ended December 31, (in millions) 2021 2020 Net underwriting income (a) $ - $ - Net investment income - Fortitude Re funds withheld assets 1,971 1,053 Net realized gains (losses) on Fortitude Re funds withheld assets: Net realized gains - Fortitude Re funds withheld assets 1,003 463 Net realized losses - Fortitude Re embedded derivatives ( 603) ( 2,645) Net realized gains (losses) on Fortitude Re funds withheld assets 400 ( 2,182) Income (loss) from continuing operations before income tax expense (benefit) 2,371 ( 1,129) Income tax expense (benefit) (b) 499 ( 237) Net income (loss) 1,872 ( 892) Change in unrealized appreciation (depreciation) of all other investments (b) ( 1,760) 812 Comprehensive income (loss) $ 112 $ ( 80) (a) Effective in the second quarter of 2021, an amendment was made to the purchase agreement to finalize the post-closing purchase price adjustment for adverse reserve development and as a result, during 2021, AIG recognized a $ 21 million benefit through Policyholder benefits and losses incurred. (b) The income tax expense (benefit) and the tax impact in AOCI was computed using AIG’s U.S. statutory tax rate of 21 percent. Various assets supporting the Fortitude Re funds withheld arrangements are reported at amortized cost, and as such, changes in the fair value of these assets are not reflected in the financial statements. However, changes in the fair value of these assets are included in the embedded derivative in the Fortitude Re funds withheld arrangements and the appreciation of these assets is the primary driver of the comprehensive income (loss) reflected above. Reinsurance – Credit Losses The estimation of reinsurance recoverables involves a significant amount of judgment, particularly for latent exposures, such as asbestos, due to their long-tail nature. Reinsurance assets include reinsurance recoverables on unpaid losses and loss adjustment expenses that are estimated as part of our loss reserving process and, consequently, are subject to similar judgments and uncertainties as the estimation of gross loss reserves. Similarly, Other assets include reinsurance recoverables for contracts which are accounted for as deposits. We assess the collectability of reinsurance recoverable balances in each reporting period, through either historical trends of disputes and credit events or financial analysis of the credit quality of the reinsurer. We record adjustments to reflect the results of these assessments through an allowance for credit losses and disputes that reduces the carrying amount of reinsurance and other assets on the consolidated balance sheets (collectively, reinsurance recoverables). This estimate requires significant judgment for which key considerations include: paid and unpaid amounts recoverable; whether the balance is in dispute or subject to legal collection; the relative financial health of the reinsurer as determined by the Obligor Risk Ratings (ORRs) we assign to each reinsurer based upon our financial reviews; reinsurers that are financially troubled (i.e., in run-off, have voluntarily or involuntarily been placed in receivership, are insolvent, are in the process of liquidation or otherwise subject to formal or informal regulatory restriction) are assigned ORRs that will generate a significant allowance; and whether collateral and collateral arrangements exist. An estimate of the reinsurance recoverables lifetime expected credit losses is established utilizing a probability of default and loss given default method, which reflects the reinsurer’s ORR rating. The allowance for credit losses excludes disputed amounts. An allowance for disputes is established for a reinsurance recoverable using the losses incurred model for contingencies. The total reinsurance recoverables as of December 31, 2021 were $ 76.3 billion. As of that date, utilizing AIG’s ORRs, (i) approximately 92 percent of the reinsurance recoverables were investment grade, of which 52 percent related to General Insurance and 40 percent related to Life and Retirement; (ii) approximately 7 percent of the reinsurance recoverables were non-investment grade, the majority of which related to General Insurance; (iii) less than one one As of December 31, 2021, approximately 71 percent of our non-investment grade reinsurance exposure related to captive insurers. These arrangements are typically collateralized by letters of credit, funds withheld or trust agreements. |
Variable Interest Entity | A variable interest entity (VIE) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on other criteria discussed below. We enter into various arrangements with VIEs in the normal course of business and consolidate the VIEs when we determine we are the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders. The primary beneficiary is the entity that has both (i) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE. |
Deferred Policy Acquisition Costs | DAC represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such deferred policy acquisition costs generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analyzed to assess whether it is fully deferrable. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts. We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates. Short-duration insurance contracts: Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, generally 12 months. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC. We assess the recoverability of DAC on an annual basis or more frequently if circumstances indicate an impairment may have occurred. This assessment is performed by comparing recorded net unearned premiums and anticipated investment income on in-force business to the sum of expected losses and loss adjustment expenses incurred, unamortized DAC and maintenance costs. If the sum of these costs exceeds the amount of recorded net unearned premiums and anticipated investment income, the excess is recognized as an offset against the asset established for DAC. This offset is referred to as a premium deficiency charge. Increases in expected losses and loss adjustment expenses incurred can have a significant impact on the likelihood and amount of a premium deficiency charge. Long-duration insurance contracts: Policy acquisition costs for participating life, traditional life and accident and health insurance products are generally deferred and amortized, with interest, over the premium paying period. The assumptions used to calculate the benefit liabilities and DAC for these traditional products are set when a policy is issued and do not change with changes in actual experience, unless a loss recognition event occurs. These “locked-in” assumptions include mortality, morbidity, persistency, maintenance expenses and investment returns, and include margins for adverse deviation to reflect uncertainty given that actual experience might deviate from these assumptions. A loss recognition event occurs when there is a shortfall between the carrying amount of future policy benefit liabilities, net of DAC, and what the future policy benefit liabilities, net of DAC, would be when applying updated current assumptions. When we determine a loss recognition event has occurred, we first reduce any DAC related to that block of business through amortization of acquisition expense, and after DAC is depleted, we record additional liabilities through a charge to Policyholder benefits and losses incurred. Groupings for loss recognition testing are consistent with our manner of acquiring, servicing and measuring the profitability of the business and applied by product groupings. We perform separate loss recognition tests for traditional life products, payout annuities and long-term care products. Once loss recognition has been recorded for a block of business, the old assumption set is replaced and the assumption set used for the loss recognition would then be subject to the lock-in principle. Investment-oriented contracts: Certain policy acquisition costs and policy issuance costs related to universal life and investment-type products (collectively, investment-oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts. DAC on investment-oriented contracts were approximately $ 5.8 billion and $ 5.1 billion at December 31, 2021 and 2020, respectively. Estimated gross profits are affected by a number of factors, including levels of current and expected interest rates, net investment income and spreads, net realized gains and losses, fees, surrender rates, mortality experience, policyholder behavior experience and equity market returns and volatility. In each reporting period, current period amortization expense is adjusted to reflect actual gross profits. If the assumptions used for estimating gross profit change significantly, DAC is recalculated using the new assumptions, including actuarial assumptions such as mortality, lapse, benefit utilization, and premium persistency, and any resulting adjustment is included in income. If the new assumptions indicate that future estimated gross profits are higher than previously estimated, DAC will be increased resulting in a decrease in amortization expense and increase in income in the current period; if future estimated gross profits are lower than previously estimated, DAC will be decreased resulting in an increase in amortization expense and decrease in income in the current period. Updating such assumptions may result in acceleration of amortization in some products and deceleration of amortization in other products. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts. To estimate future estimated gross profits for variable annuity products, a long-term annual asset growth assumption is applied to determine the future growth in assets and related asset-based fees. In determining the asset growth rate, the effect of short-term fluctuations in the equity markets is partially mitigated through the use of a “reversion to the mean” methodology whereby short-term asset growth above or below long-term annual rate assumptions impacts the growth assumption applied to the five-year period subsequent to the current balance sheet date. The reversion to the mean methodology allows us to maintain our long-term growth assumptions, while also giving consideration to the effect of actual investment performance. When actual performance significantly deviates from the annual long-term growth assumption, as evidenced by growth assumptions in the five-year reversion to the mean period falling below a certain rate (floor) or rising above a certain rate (cap) for a sustained period, judgment may be applied to revise or “unlock” the growth rate assumptions to be used for both the five-year reversion to the mean period as well as the long-term annual growth assumption applied to subsequent periods. Unrealized Appreciation (Depreciation) of Investments: DAC related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity securities available for sale, with related changes recognized through Other comprehensive income. The adjustment is made at each balance sheet date, as if the securities had been sold at their stated aggregate fair value and the proceeds reinvested at current yields. Similarly, for long-duration traditional insurance contracts, if the assets supporting the liabilities are in a net unrealized gain position at the balance sheet date, loss recognition testing assumptions are updated to exclude such gains from future cash flows by reflecting the impact of reinvestment rates on future yields. If a future loss is anticipated under this basis, any additional shortfall indicated by loss recognition tests is recognized as a reduction in accumulated other comprehensive income. Similar to other loss recognition on long-duration insurance contracts, such shortfall is first reflected as a reduction in DAC and secondly as an increase in liabilities for future policy benefits. The change in these adjustments, net of tax, is included with the change in net unrealized appreciation of investments that is credited or charged directly to Other comprehensive income. Internal Replacements of Long-duration and Investment-oriented Products: For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If the modification does not substantially change the contract, we do not change the accounting and amortization of existing DAC and related actuarial balances. If an internal replacement represents a substantial change, the original contract is considered to be extinguished and any related DAC or other policy balances are charged or credited to income, and any new deferrable costs associated with the replacement contract are deferred. Value of Business Acquired (VOBA): VOBA is determined at the time of acquisition and is reported in the Consolidated Balance Sheets with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For participating life, traditional life and accident and health insurance products, VOBA is amortized over the life of the business in a manner similar to that for DAC based on the assumptions at purchase. For investment-oriented products, VOBA is amortized in relation to estimated gross profits and adjusted for the effect of unrealized gains or losses on fixed maturity securities available for sale in a manner similar to DAC. |
Derivatives and Hedge Accounting | We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with embedded derivatives contained in insurance contract liabilities, fixed maturity securities, outstanding medium- and long-term notes as well as other interest rate sensitive assets and liabilities. Foreign exchange derivatives (principally foreign exchange forwards and swaps) are used to economically mitigate risk associated with non-U.S. dollar denominated debt, net capital exposures, foreign currency transactions, and foreign denominated investments. Equity derivatives are used to mitigate financial risk embedded in certain insurance liabilities and economically hedge certain investments. We use credit derivatives to manage our credit exposures. Commodity derivatives are used to hedge exposures within reinsurance contracts. The derivatives are effective economic hedges of the exposures that they are meant to offset. In addition to hedging activities, we also enter into derivative contracts with respect to investment operations, which may include, among other things, CDSs, total return swaps and purchases of investments with embedded derivatives, such as equity-linked notes and convertible bonds. Interest rate, currency, equity and commodity swaps, credit contracts, swaptions, options and forward transactions are accounted for as derivatives, recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. Aggregate asset or liability positions are netted on the Consolidated Balance Sheets only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty. Cash collateral posted with counterparties in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset. Derivatives, with the exception of embedded derivatives, are reported at fair value in the Consolidated Balance Sheets in Other assets and Other liabilities. Embedded derivatives are generally presented with the host contract in the Consolidated Balance Sheets. A bifurcated embedded derivative is measured at fair value and accounted for in the same manner as a free standing derivative contract. The corresponding host contract is accounted for according to the accounting guidance applicable for that instrument. For additional information on embedded derivatives see Notes 4 and 13. |
Liability for Unpaid Losses and Loss Adjustment Expenses (Loss Reserves) | Liability for Unpaid Losses and Loss Adjustment Expenses (Loss Reserves) Loss reserves represent the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and loss adjustment expenses, less applicable discount. We regularly review and update the methods used to determine loss reserve estimates. Any adjustments resulting from this review are reflected currently in pre-tax income, except to the extent such adjustment impacts a deferred gain under a retroactive reinsurance agreement, in which case the ceded portion would be amortized into pre-tax income in subsequent periods. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be recognized and confirmed. Given the uncertainties around the impact from the COVID-19 pandemic, including the significant global economic slowdown, the full impact of COVID-19 and how it may ultimately impact the results of our insurance operations remains uncertain. In addition, in response to the pandemic, new governmental, legislative and regulatory initiatives have been put in place and continue to be developed that could result in additional restrictions and requirements relating to our policies that may have a negative impact on our business operations. We have recorded our estimate of the ultimate liability for losses that have occurred as of the balance sheet date associated with COVID-19 which reflects our expectations given the current facts and circumstances. We will continue to monitor and review the impact. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as favorable development. |
Future policy benefits for life and accident and health insurance contracts and policyholder contract deposits | Future Policy Benefits Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums. Included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements whereby a claimant has agreed to settle a general insurance claim in exchange for fixed payments over a fixed determinable period of time with a life contingency feature. In addition, reserves for contracts in loss recognition are adjusted to reflect the effect of unrealized gains on fixed maturity securities available for sale. Future policy benefits also include certain guaranteed benefits of variable annuity products that are not considered embedded derivatives, primarily guaranteed minimum death benefits. For universal life policies with secondary guarantees, we recognize certain liabilities in addition to policyholder account balances. For universal life policies with secondary guarantees, as well as other universal life policies for which profits followed by losses are expected at contract inception, a liability is recognized based on a benefit ratio of (a) the present value of total expected payments, in excess of the account value, over the life of the contract, divided by (b) the present value of total expected assessments over the life of the contract. For universal life policies without secondary guarantees, for which profits followed by losses are first expected after contract inception, we establish a liability, in addition to policyholder account balances, so that expected future losses are recognized in proportion to the emergence of profits in the earlier (profitable) years. Universal life account balances as well as these additional liabilities related to universal life products are reported within Future Policy Benefits in the Consolidated Balance Sheet. These additional liabilities are also adjusted to reflect the effect of unrealized gains or losses on fixed maturity securities available for sale and prior to 2018, equity securities at fair value on accumulated assessments, with related changes recognized through Other comprehensive income. The policyholder behavior assumptions for these liabilities include mortality, lapses and premium persistency. The capital market assumptions used for the liability for universal life secondary guarantees include discount rates and net earned rates. For additional information on guaranteed minimum death benefits see Note 13. The liability for long-duration future policy benefits has been established including assumptions for interest rates which vary by year of issuance and product, and range from approximately 0.2 percent to 14.6 percent. Mortality and surrender rate assumptions are generally based on actual experience when the liability is established. Policyholder Contract Deposits The liability for Policyholder contract deposits is primarily recorded at accumulated value (deposits received and net transfers from separate accounts, plus accrued interest credited at rates ranging from 0.3 percent to 10 percent at December 31, 2021, less withdrawals and assessed fees). Deposits collected on investment-oriented products are not reflected as revenues, because they are recorded directly to Policyholder contract deposits upon receipt. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenues. In addition to liabilities for universal life, fixed annuities, fixed options within variable annuities, annuities without life contingencies, funding agreements and GICs, policyholder contract deposits also include our liability for (i) certain guaranteed benefits and indexed features accounted for as embedded derivatives at fair value, (ii) annuities issued in a structured settlement arrangement with no life contingency and (iii) certain contracts we have elected to account for at fair value. For additional information on guaranteed benefits accounted for as embedded derivatives see Note 13. Other Policyholder Funds Other policyholder funds include unearned revenue reserves (URR). URR consist of front-end loads on investment-oriented contracts, representing those policy loads that are non-level and typically higher in initial policy years than in later policy years. URR for investment-oriented contracts are generally deferred and amortized, with interest, in relation to the incidence of estimated gross profits (EGPs) to be realized over the estimated lives of the contracts and are subject to the same adjustments due to changes in the assumptions underlying EGPs as DAC. Amortization of URR is recorded in Policy fees. Similar to unrealized appreciation (depreciation) of investments for DAC, URR related to investment-oriented products is also adjusted to reflect the effect of unrealized gains or losses on fixed maturity securities available for sale with related changes recognized through Other comprehensive income. Other policyholder funds also include provisions for future dividends to participating policyholders, accrued in accordance with all applicable regulatory or contractual provisions. Participating life business represented approximately 1.2 percent of gross insurance in force at December 31, 2021 and 1.7 percent of gross domestic premiums and other considerations in 2021. The amount of annual dividends to be paid is approved locally by the boards of directors of the Life and Retirement companies. Provisions for future dividend payments are computed by jurisdiction, reflecting local regulations. The portions of current and prior net income and of current unrealized appreciation of investments that can inure to our benefit are restricted in some cases by the insurance contracts and by the local insurance regulations of the jurisdictions in which the policies are in force. Certain products are subject to experience adjustments. These include group life and group medical products, credit life contracts, accident and health insurance contracts/riders attached to life policies and, to a limited extent, reinsurance agreements with other direct insurers. Ultimate premiums from these contracts are estimated and recognized as revenue with the unearned portions of the premiums recorded as liabilities in Other policyholder funds. Experience adjustments vary according to the type of contract and the territory in which the policy is in force and are subject to local regulatory guidance. |
Debt | Our long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts, hedge accounting valuation adjustments and fair value adjustments, when applicable. |
Noncontrolling Interests | Non-redeemable noncontrolling interest is the portion of equity (net assets) and net income (loss) in a subsidiary not attributable, directly or indirectly, to AIG. |
Earnings Per Share | The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The diluted EPS computation is based on those shares used in the basic EPS computation plus common shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits, using the treasury stock method or the if-converted method, as applicable. |
Income Taxes | Assessment of Deferred Tax Asset Valuation Allowance The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed. Our framework for assessing the recoverability of the deferred tax asset requires us to consider all available evidence, including: the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; the sustainability of recent operating profitability of our subsidiaries; the predictability of future operating profitability of the character necessary to realize the net deferred tax asset, including forecasts of future income for each of our businesses and actual and planned business and operational changes; the carryforward periods for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and prudent and feasible actions and tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset. In performing our assessment of the recoverability of the deferred tax asset under this framework, we consider tax laws governing the utilization of the net operating loss, capital loss and foreign tax credit carryforwards in each applicable jurisdiction. Under U.S. tax law, a company generally must use its net operating loss carryforwards before it can use its foreign tax credit carryforwards, even though the carryforward period for the foreign tax credit is shorter than for the net operating loss. Our U.S. consolidated federal income tax group includes both life companies and non-life companies. While the U.S. taxable income of our non-life companies can be offset by our net operating loss carryforwards, only a portion (no more than 35 percent) of the U.S. taxable income of our life companies can be offset by those net operating loss carryforwards. The remaining tax liability of our life companies can be offset by the foreign tax credit carryforwards. Accordingly, we are able to utilize both the net operating loss and foreign tax credit carryforwards concurrently. Recent events, including the impact of the recent completion of audit activity by the IRS, the COVID-19 pandemic, changes in target interest rates by the Board of Governors of the Federal Reserve System, and significant market volatility, continue to impact actual and projected results of our business operations as well as our views on potential effectiveness of certain prudent and feasible tax planning strategies. In order to demonstrate the predictability and sufficiency of future taxable income necessary to support the realizability of the net operating losses and foreign tax credit carryforwards, we have considered forecasts of future income for each of our businesses, including assumptions about future macro-economic and AIG-specific conditions and events, and any impact these conditions and events may have on our prudent and feasible tax planning strategies. We also subjected the forecasts to a variety of stresses of key assumptions and evaluated the effect on tax attribute utilization. The carryforward period of our foreign tax credit carryforwards runs through 2023. Carryforward periods for our net operating losses extend from 2028 forward. However, utilization of a portion of our net operating losses is limited under separate return limitation year rules. During the first quarter of 2021, the recent completion of audit activity by the IRS and subsequent release of certain reserves for uncertain tax positions resulted in an initial recognition of additional net operating loss and foreign tax credit carryforwards arising in prior years. Taking into account this initial recognition of additional carryforwards as well as other events and our analysis of their potential impact on utilization of our tax attributes, for the three months ended March 31, 2021, we recorded an increase of $ 700 million in valuation allowance related to a portion of our tax attribute carryforwards that are no longer more-likely-than-not to be realized. No additional activity was recorded for the remainder of 2021. Accordingly, during the year ended December 31, 2021, we have recorded a $ 700 million valuation allowance through continuing operations. As of December 31, 2021, the balance sheet reflects a valuation allowance of $ 850 million related to a portion of our tax attribute carryforwards that are no longer more-likely-than-not to be realized. Estimates of future taxable income, including income generated from prudent and feasible actions and tax planning strategies, impact of settlements with taxing authorities, and any changes to interpretations and assumptions related to the impact of the Tax Act could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset. Additionally, estimates of future taxable income, including prudent and feasible tax planning strategies, may be further impacted by market developments arising from the COVID-19 pandemic and uncertainty regarding its outcome. Such potential impact could be material to our consolidated financial condition or results of operations for an individual reporting period. Further, the planned separation of the Life and Retirement business from AIG, if completed, would result in tax deconsolidation of these entities from the AIG Consolidated Federal Tax Group and potentially impact our ability to utilize certain tax loss and credit carryforwards. Such potential impact could result in valuation allowance being established with respect to such tax attributes in the reporting period in which tax deconsolidation occurs. |
Revenues and expenses | Premiums for short-duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums written and earned on a pro rata basis over the term of the related coverage. In addition, certain miscellaneous income is included as premiums written and earned. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired terms of coverage. Reinsurance premiums are typically earned over the same period as the underlying policies or risks covered by the contract. As a result, the earnings pattern of a reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies throughout the year. Reinsurance premiums ceded under prospective reinsurance agreements are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsureds. Any subsequent differences that arise regarding such estimates are recorded in the periods in which they are determined. Premiums for long-duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued. Policy fees represent fees recognized from universal life and investment-type products consisting of policy charges for the cost of insurance, policy administration charges, surrender charges and amortization of unearned revenue reserves. Policy fees are recognized as revenues in the period in which they are assessed against policyholders, unless the fees are designed to compensate AIG for services to be provided in the future. Fees deferred as unearned revenue are amortized in relation to the incidence of expected gross profits to be realized over the estimated lives of the contracts, similar to DAC. Other income includes advisory fee income from the Life and Retirement broker dealer business. |
Cash | Cash represents cash on hand and demand deposits. |
Premiums and other receivables - net | Premiums and other receivables – net of allowance for credit losses and disputes include premium balances receivable, amounts due from agents and brokers and policyholders, receivables resulting from sales of securities that had not yet settled, cash collateral posted to derivative counterparties that is not eligible to be netted against derivative liabilities and other receivables. |
Deposit assets and liabilities | Deposit assets and liabilities: We have entered into certain insurance and reinsurance contracts, primarily in our General Insurance companies, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. When we receive premiums on such contracts, the premiums received, after deduction for certain related expenses, are recorded as deposits within Other liabilities in the Consolidated Balance Sheets. Net proceeds of these deposits are invested and generate Net investment income. When we pay premiums on such contracts, the premiums paid are recorded as deposits within Other assets in the Consolidated Balance Sheets. The deposit asset or liability is adjusted as amounts are paid, consistent with the underlying contracts. |
Other assets | Other assets consist of deferred sales inducements (DSI), prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, restricted cash, derivative assets, accrued interest income, and assets classified as held-for-sale. The cost of buildings and furniture and equipment is depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and fixtures). Expenditures for maintenance and repairs are charged to income as incurred and expenditures for improvements are capitalized and depreciated. We periodically assess the carrying amount of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized using the straight-line method over a period generally not exceeding ten years. We offer sales inducements which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. Such amounts are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC. To qualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception. We must also demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest and are higher than the contract’s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets, recorded in Other assets, totaled $ 307 million and $ 281 million at December 31, 2021 and 2020, respectively. The amortization expense associated with these assets is reported within Interest credited to policyholder account balances in the Consolidated Statements of Income. Such amortization expense totaled $ 113 million, $ 60 million and $ 79 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Goodwill | 11. Goodwill and Other Intangible Assets Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is tested for impairment at the reporting unit level, which is defined as an operating segment or one level below, and the test is performed annually, or more frequently if circumstances indicate an impairment may have occurred. At December 31, 2021, goodwill is reported within our General Insurance business – North America and International operating segments, our Life and Retirement business – Life Insurance operating segment and our Other Operations segment. When a business is transferred from one reporting unit to another, goodwill from the original reporting unit is allocated among reporting units based on the fair value of business transferred, relative to business retained by a reporting unit. The impairment assessment involves an option to first assess qualitative factors to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not performed, or after assessing the totality of the events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative assessment for potential impairment is performed. If the qualitative test is not performed or if the test indicates a potential impairment is present, we estimate the fair value of each reporting unit and compare the estimated fair value with the carrying amount of the reporting unit, including allocated goodwill. The estimate of a reporting unit’s fair value involves management judgment and is based on one or a combination of approaches including discounted expected future cash flows, market-based earnings multiples of the unit’s peer companies, external appraisals or, in the case of reporting units being considered for sale, third-party indications of fair value, if available. We consider one or more of these estimates when determining the fair value of a reporting unit to be used in the impairment test. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill is not impaired. If the carrying value of a reporting unit exceeds its estimated fair value, goodwill associated with that reporting unit potentially is impaired. The amount of impairment, if any, is measured as the excess of a reporting unit’s carrying amount over its fair value not to exceed the total amount of goodwill allocated to that reporting unit and recognized in income. Indefinite lived intangible assets are not subject to amortization. Indefinite lived intangible assets primarily include Lloyd’s syndicate capacity and brand names. Finite lived intangible assets are amortized over their useful lives. Finite lived intangible assets primarily include distribution networks and are recorded net of accumulated amortization. The Company tests intangible assets for impairment on an annual basis or whenever events or circumstances suggest that the carrying value of an intangible asset may exceed the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If this condition exists and the carrying value of an intangible asset exceeds its fair value, the excess is recognized as an impairment and is recorded as a charge against net income (loss). |
Separate accounts | Separate accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment objectives and the assets are carried at fair value. The assets of each account are legally segregated and are not subject to claims that arise from any of our other businesses. The liabilities for these accounts are equal to the account assets. Separate accounts may also include deposits for funds held under stable value wrap funding agreements, although the majority of stable value wrap sales are measured based on the notional amount included in assets under management and do not include the receipt of funds. For additional information on separate accounts see Note 13 herein . |
Long-Duration Contracts | We report variable contracts within the separate accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder and the separate account meets additional accounting criteria to qualify for separate account treatment. The assets supporting the variable portion of variable annuity and variable universal life contracts that qualify for separate account treatment are carried at fair value and reported as Separate account assets, with an equivalent summary total reported as Separate account liabilities. Policy values for variable products and investment contracts are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units in the separate accounts, plus any liabilities for guaranteed minimum death benefits (GMDB) or guaranteed minimum withdrawal benefits (GMWB) included in Future policy benefits or Policyholder contract deposits, respectively. Amounts assessed against the contract holders for mortality, administrative and other services are included in revenue. Net investment income, net investment gains and losses, changes in fair value of assets, and policyholder account deposits and withdrawals related to separate accounts are excluded from the Consolidated Statements of Income (Loss), Comprehensive Income (Loss) and Cash Flows. |
Other liabilities | Other liabilities consist of other funds on deposit, other payables, securities sold under agreements to repurchase, securities sold but not yet purchased, liabilities resulting from purchases of securities that had not yet settled, derivative liabilities, cash collateral received from derivative counterparties that contractually cannot be netted against derivative assets, allowance for credit losses in relation to off-balance sheet commitments, deferred gains on retroactive reinsurance agreements and liabilities classified as held-for-sale. |
Foreign currency | Foreign currency: Financial statement accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in Total AIG shareholders’ equity. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a consolidated entity are remeasured into that entity’s functional currency resulting in exchange gains or losses recorded in income. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income. |
Accounting Standards Adopted During 2021 and Future Application of Accounting Standards | Accounting Standards Adopted During 2021 Income Tax On December 18, 2019, the FASB issued an accounting standard that simplifies the accounting for income taxes by eliminating certain exceptions to the incremental approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The amendments also simplified other areas including the accounting for franchise taxes and enacted tax laws or rates and clarified the accounting for transactions that result in the step-up in the tax basis of goodwill. We adopted the standard on its effective date of January 1, 2021. The impact of adoption was not material to our consolidated financial condition, results of operations and cash flows. Clarification of Accounting for Certain Equity Method Investments On January 16, 2020, the FASB issued an accounting standard to clarify how a previously issued standard regarding a company’s ability to measure the fair value of certain equity securities without a readily determinable fair value should interact with equity method investments standards. The previously issued standard provides that such equity securities could be measured at cost, minus impairment, if any, unless an observable transaction for an identical or similar security occurs (measurement alternative). The new standard clarifies that a company should consider observable transactions that require the company to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with the equity method immediately before applying or upon discontinuing the equity method. The standard further clarifies that, when determining the accounting for certain forward contracts and purchased options a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. We adopted the standard prospectively on its effective date of January 1, 2021. The adoption of the standard did not have a material impact on our consolidated financial condition, results of operations or cash flows. Reference Rate Reform On March 12, 2020, the FASB issued an accounting standard that provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The standard allows us to account for certain contract modifications that result from the discontinuation of the London Inter-Bank Offered Rate (LIBOR) or another reference rate as a continuation of the existing contract without additional analysis. This standard may be elected and applied prospectively over time from March 12, 2020 through December 31, 2022 as reference rate reform activities occur. Where permitted by the guidance, we have accounted for contract modifications stemming from the discontinuation of LIBOR or another reference rate as a continuation of the existing contract. As part of our implementation efforts, we have and will continue to assess our operational readiness and current and alternative reference rates’ merits, limitations, risks and suitability for our investment and insurance processes. The adoption of the standard has not had, and is not expected to have, a material impact on our reported consolidated financial condition, results of operations, cash flows and required disclosures. Future Application of Accounting Standards Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued an accounting standard update with the objective of making targeted improvements to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The Company will adopt the standard on January 1, 2023. We continue to evaluate and expect the adoption of this standard will impact our financial condition, results of operations, statement of cash flows and disclosures, as well as systems, processes and controls. The Company will adopt the standard using the modified retrospective transition method relating to liabilities for traditional and limited payment contracts and deferred policy acquisition costs associated therewith. The Company will adopt the standard in relation to market risk benefits (MRBs) on a retrospective basis. Based upon this transition method, the Company currently estimates that the January 1, 2021 transition date (Transition Date) impact from adoption is likely to result in a decrease in AIG’s equity between approximately $ 1.0 billion and $ 3.0 billion in AIG’s Life and Retirement business. The most significant drivers of the transition adjustment are expected to be (1) changes related to market risk benefits in our Individual Retirement and Group Retirement segments, including the impact of non-performance adjustments (2) changes to the discount rate which will most significantly impact our Life Insurance and Institutional Markets segments and (3) the removal of balances recorded in AOCI related to changes in unrealized appreciation (depreciation) on investments. Market risk benefits: The standard requires the measurement of all MRBs associated with deposit (or account balance) contracts at fair value at each reporting period. Changes in fair value compared to prior periods will be recorded and presented separately within the income statement, with the exception of instrument-specific credit risk changes (non-performance adjustments), which will be recognized in other comprehensive income. MRBs will impact both retained earnings and AOCI upon transition. As MRBs are required to be accounted for at fair value, the quarterly valuation of these items will result in variability and volatility in the Company’s results following adoption. Discount rate assumption: The standard requires the discount rate assumption for the liability for future policy benefits to be updated at the end of each reporting period using an upper-medium grade (low credit risk) fixed income instrument yield that maximizes the use of observable market inputs. Upon transition, the Company currently estimates an adjustment to AOCI due to the fact that the market upper-medium grade (low credit risk) interest rates as of the Transition Date differ from reserve interest accretion rates. Lower interest rates result in a higher liability for future policy benefits, and are anticipated to more significantly impact our Life Insurance and Institutional Markets segments. Following adoption, the impact of changes to discount rates will be recognized through other comprehensive income. Changes resulting from unlocking the discount rate each reporting period will primarily impact term life insurance and other traditional life insurance products, as well as pension risk transfer and structured settlement products. Removal of balances related to changes in unrealized appreciation (depreciation) on investments: Under the standard, the majority of balances recorded in AOCI related to changes in unrealized appreciation (depreciation) on investments will be eliminated. In addition to the above, the standard also: Requires the review and if necessary, update of future policy benefit assumptions at least annually for traditional and limited pay long duration contracts, with the recognition and separate presentation of any resulting re-measurement gain or loss (except for discount rate changes as noted above) in the income statement. Simplifies the amortization of DAC to a constant level basis over the expected term of the related contracts with adjustments for unexpected terminations, but no longer requires an impairment test. Increased disclosures of disaggregated roll-forwards of several balances, including: liabilities for future policy benefits, deferred acquisition costs, account balances, market risk benefits, separate account liabilities and information about significant inputs, judgments and methods used in measurement and changes thereto and impact of those changes. We expect that the accounting for Fortitude Re will continue to remain largely unchanged. With respect to Fortitude Re, the reinsurance assets, including the discount rates, will continue to be calculated using the same methodology and assumptions as the direct policies. Accounting for modco remains unchanged. The Company has created a governance framework and a plan to support implementation of the updated standard. As part of its implementation plan, the Company has also advanced the modernization of its actuarial technology platform to enhance its modeling, data management, experience study and analytical capabilities, increase the end-to-end automation of key reporting and analytical processes and optimize its control framework. The Company has designed and begun implementation and testing of internal controls related to the new processes created as part of implementing the updated standard and will continue to refine these internal controls until the formal implementation in the first quarter of 2023. |
Credit Losses | Reinsurance – Credit Losses The estimation of reinsurance recoverables involves a significant amount of judgment, particularly for latent exposures, such as asbestos, due to their long-tail nature. Reinsurance assets include reinsurance recoverables on unpaid losses and loss adjustment expenses that are estimated as part of our loss reserving process and, consequently, are subject to similar judgments and uncertainties as the estimation of gross loss reserves. Similarly, Other assets include reinsurance recoverables for contracts which are accounted for as deposits. We assess the collectability of reinsurance recoverable balances in each reporting period, through either historical trends of disputes and credit events or financial analysis of the credit quality of the reinsurer. We record adjustments to reflect the results of these assessments through an allowance for credit losses and disputes that reduces the carrying amount of reinsurance and other assets on the consolidated balance sheets (collectively, reinsurance recoverables). This estimate requires significant judgment for which key considerations include: paid and unpaid amounts recoverable; whether the balance is in dispute or subject to legal collection; the relative financial health of the reinsurer as determined by the Obligor Risk Ratings (ORRs) we assign to each reinsurer based upon our financial reviews; reinsurers that are financially troubled (i.e., in run-off, have voluntarily or involuntarily been placed in receivership, are insolvent, are in the process of liquidation or otherwise subject to formal or informal regulatory restriction) are assigned ORRs that will generate a significant allowance; and whether collateral and collateral arrangements exist. An estimate of the reinsurance recoverables lifetime expected credit losses is established utilizing a probability of default and loss given default method, which reflects the reinsurer’s ORR rating. The allowance for credit losses excludes disputed amounts. An allowance for disputes is established for a reinsurance recoverable using the losses incurred model for contingencies. The total reinsurance recoverables as of December 31, 2021 were $ 76.3 billion. As of that date, utilizing AIG’s ORRs, (i) approximately 92 percent of the reinsurance recoverables were investment grade, of which 52 percent related to General Insurance and 40 percent related to Life and Retirement; (ii) approximately 7 percent of the reinsurance recoverables were non-investment grade, the majority of which related to General Insurance; (iii) less than one one As of December 31, 2021, approximately 71 percent of our non-investment grade reinsurance exposure related to captive insurers. These arrangements are typically collateralized by letters of credit, funds withheld or trust agreements. Past-Due Status We consider a reinsurance asset to be past due when it is 90 days past due. The allowance for credit losses is estimated excluding disputed amounts. An allowance for disputes is established using the losses incurred method for contingencies. Past due balances on claims that are not in dispute were not material for any of the periods presented. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
Schedule of continuing operations by operating segment including reconciling items | Adjusted Net Pre-tax Adjusted Investment Interest Amortization Income (in millions) Revenues Income Expense of DAC (Loss) 2021 General Insurance North America $ 10,989 $ - $ 1,333 $ ( 47) (a) International 14,068 - 2,197 1,102 (a) Net investment income 3,304 $ 3,304 - - 3,304 Total General Insurance 28,361 3,304 - 3,530 4,359 Life and Retirement Individual Retirement 6,083 4,338 61 736 1,939 Group Retirement 3,291 2,410 35 61 1,284 Life Insurance 5,112 1,619 25 170 106 Institutional Markets 5,108 1,154 9 6 582 Total Life and Retirement 19,594 9,521 130 973 3,911 Other Operations Other Operations before consolidation and eliminations 1,338 1,112 1,220 37 ( 1,418) AIG consolidation and eliminations ( 991) ( 996) ( 65) - ( 932) Total Other Operations 347 116 1,155 37 ( 2,350) Total 48,302 12,941 1,285 4,540 5,920 Reconciling items to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 60 60 - - 61 Changes in benefit reserves and DAC, VOBA and DSI related to net realized gains (losses) - - - 33 ( 52) Changes in the fair value of equity securities ( 237) ( 237) - - ( 237) Other income (expense) - net ( 24) 33 33 - - Loss on extinguishment of debt - - - - ( 389) Net investment income on Fortitude Re funds withheld assets 1,971 1,971 - - 1,971 Net realized gains (losses) on Fortitude Re funds withheld assets 1,003 - - - 1,003 Net realized gains (losses) on Fortitude Re funds withheld embedded derivative ( 603) - - - ( 603) Net realized gains (losses) (b) 1,585 ( 156) ( 13) - 1,623 Net gain on divestitures - - - - 3,044 Non-operating litigation reserves and settlements - - - - ( 3) Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - 186 Net loss reserve discount benefit - - - - 193 Pension expense related to lump sum payments to former employees - - - - ( 34) Integration and transaction costs associated with acquiring or divesting businesses - - - - ( 83) Restructuring and other costs - - - - ( 433) Non-recurring costs related to regulatory or accounting changes - - - - ( 68) Revenues and pre-tax income $ 52,057 $ 14,612 $ 1,305 $ 4,573 $ 12,099 2020 General Insurance North America $ 10,302 $ - $ 1,365 $ ( 1,301) (a) International 13,360 - 2,173 277 (a) Net investment income 2,925 $ 2,925 - - 2,925 Total General Insurance 26,587 2,925 - 3,538 1,901 Life and Retirement Individual Retirement 5,714 4,131 72 590 1,938 Group Retirement 2,970 2,236 42 7 1,013 Life Insurance 4,877 1,526 30 30 142 Institutional Markets 3,714 988 11 5 438 Total Life and Retirement 17,275 8,881 155 632 3,531 Other Operations Other Operations before consolidation and eliminations 1,385 1,087 1,306 50 ( 1,963) AIG consolidation and eliminations ( 562) ( 572) ( 70) - ( 466) Total Other Operations 823 515 1,236 50 ( 2,429) Total 44,685 12,321 1,391 4,220 3,003 Reconciling items to pre-tax income (loss): Changes in fair value of securities used to hedge guaranteed living benefits 56 56 - - 41 Changes in benefit reserves and DAC, VOBA and DSI related to net realized gains (losses) - - - ( 9) 12 Changes in the fair value of equity securities 200 200 - - 200 Other income (expense) - net 49 99 99 - - Loss on extinguishment of debt - - - - ( 12) Net investment income on Fortitude Re funds withheld assets 1,053 1,053 - - 1,053 Net realized gains on Fortitude Re funds withheld assets 463 - - - 463 Net realized losses on Fortitude Re funds withheld embedded derivative ( 2,645) - - - ( 2,645) Net realized losses (b) ( 148) ( 98) ( 33) - ( 97) Net loss on divestitures - - - - ( 8,525) Non-operating litigation reserves and settlements 23 - - - 21 Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - 221 Net loss reserve discount charge - - - - ( 516) Integration and transaction costs associated with acquiring or divesting businesses - - - - ( 12) Restructuring and other costs - - - - ( 435) Non-recurring costs related to regulatory or accounting changes - - - - ( 65) Revenues and pre-tax income (loss) $ 43,736 $ 13,631 $ 1,457 $ 4,211 $ ( 7,293) 2019 General Insurance North America $ 12,136 $ - $ 1,923 $ ( 365) (a) International 14,302 - 2,559 454 (a) Net investment income 3,444 $ 3,444 - - 3,444 Total General Insurance 29,882 3,444 - 4,482 3,533 Life and Retirement Individual Retirement 5,643 4,122 77 449 1,977 Group Retirement 2,947 2,240 44 81 937 Life Insurance 4,825 1,483 30 137 331 Institutional Markets 2,941 888 11 5 308 Total Life and Retirement 16,356 8,733 162 672 3,553 Other Operations Other Operations before consolidation and eliminations 3,060 2,598 1,260 64 ( 1,312) AIG consolidation and eliminations ( 388) ( 385) ( 55) - ( 304) Total Other Operations 2,672 2,213 1,205 64 ( 1,616) Total 48,910 14,390 1,367 5,218 5,470 Reconciling items to pre-tax income: Changes in fair value of securities used to hedge guaranteed living benefits 228 228 - - 194 Changes in benefit reserves and DAC, VOBA and DSI related to net realized gains (losses) - - - ( 54) 56 Changes in the fair value of equity securities 158 158 - - 158 Other income (expense) - net 46 85 87 - - Loss on extinguishment of debt - - - - ( 32) Net realized gains (losses) (b) 395 ( 242) ( 37) - 456 Net loss on divestitures - - - - ( 75) Non-operating litigation reserves and settlements 9 - - - 2 Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - - 267 Net loss reserve discount charge - - - - ( 955) Integration and transaction costs associated with acquiring or divesting businesses - - - - ( 24) Restructuring and other costs - - - - ( 218) Non-recurring costs related to regulatory or accounting changes - - - - ( 12) Revenues and pre-tax income $ 49,746 $ 14,619 $ 1,417 $ 5,164 $ 5,287 (a) General Insurance North America’s and General Insurance International’s Adjusted pre-tax income does not include Net investment income as the investment portfolio results are managed at the General Insurance level. Net investment income is shown separately as a component of General Insurance’s total Adjusted pre-tax income results. (b) Includes all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets). |
Schedule of year-end identifiable assets and capital expenditures by segment | Year-End Identifiable Assets Capital Expenditures (in millions) 2021 2020 * 2021 2020 General Insurance $ 159,000 $ 155,751 $ 76 $ 156 Life and Retirement 406,104 397,749 62 107 Other Operations 31,008 32,981 205 90 Total Assets $ 596,112 $ 586,481 $ 343 $ 353 * Certain reclassifications have been made to the prior year amounts for consistency with the current year presentation. |
Schedule of entity's consolidated total revenues and real estate and other fixed assets by major geographic area | Real Estate and Other Fixed Assets, Total Revenues * Net of Accumulated Depreciation (in millions) 2021 2020 2019 2021 2020 2019 North America $ 37,224 $ 30,204 $ 36,930 $ 1,212 $ 1,230 $ 1,333 International 14,833 13,532 12,816 500 610 620 Consolidated $ 52,057 $ 43,736 $ 49,746 $ 1,712 $ 1,840 $ 1,953 * Revenues are generally reported according to the geographic location of the segment. International revenues consists of revenues from our General Insurance International operating segment. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
Assets and liabilities measured at fair value on a recurring basis | December 31, 2021 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (a) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 2,553 $ 5,641 $ - $ - $ - $ 8,194 Obligations of states, municipalities and political subdivisions - 13,096 1,431 - - 14,527 Non-U.S. governments 9 16,314 7 - - 16,330 Corporate debt - 172,967 2,641 - - 175,608 RMBS - 16,909 10,378 - - 27,287 CMBS - 14,619 1,190 - - 15,809 CDO/ABS - 8,232 11,215 - - 19,447 Total bonds available for sale 2,562 247,778 26,862 - - 277,202 Other bond securities: U.S. government and government sponsored entities - 1,750 - - - 1,750 Obligations of states, municipalities and political subdivisions - 97 - - - 97 Non-U.S. governments - 76 - - - 76 Corporate debt - 916 134 - - 1,050 RMBS - 215 196 - - 411 CMBS - 280 35 - - 315 CDO/ABS - 247 2,332 - - 2,579 Total other bond securities - 3,581 2,697 - - 6,278 Equity securities 669 64 6 - - 739 Other invested assets (b) - 138 1,948 - - 2,086 Derivative assets (c) Interest rate contracts - 3,873 - - - 3,873 Foreign exchange contracts - 1,188 1 - - 1,189 Equity contracts 7 224 450 - - 681 Commodity contracts - 4 - - - 4 Credit contracts - - 1 - - 1 Other contracts - - 13 - - 13 Counterparty netting and cash collateral - - - ( 2,779) ( 2,139) ( 4,918) Total derivative assets 7 5,289 465 ( 2,779) ( 2,139) 843 Short-term investments 2,584 1,842 - - - 4,426 Other assets - - 114 - - 114 Separate account assets 105,221 3,890 - - - 109,111 Total $ 111,043 $ 262,582 $ 32,092 $ ( 2,779) $ ( 2,139) $ 400,799 Liabilities: Policyholder contract deposits $ - $ 54 $ 9,682 $ - $ - $ 9,736 Derivative liabilities (c) Interest rate contracts 1 3,632 - - - 3,633 Foreign exchange contracts - 721 - - - 721 Equity contracts 1 46 6 - - 53 Credit contracts - 16 31 - - 47 Other contracts - - - - - - Counterparty netting and cash collateral - - - ( 2,779) ( 1,089) ( 3,868) Total derivative liabilities 2 4,415 37 ( 2,779) ( 1,089) 586 Fortitude Re funds withheld payable - - 5,922 - - 5,922 Other liabilities - - - - - - Long-term debt - 1,871 - - - 1,871 Total $ 2 $ 6,340 $ 15,641 $ ( 2,779) $ ( 1,089) $ 18,115 December 31, 2020 Counterparty Cash (in millions) Level 1 Level 2 Level 3 Netting (a) Collateral Total Assets: Bonds available for sale: U.S. government and government sponsored entities $ 73 $ 4,053 $ - $ - $ - $ 4,126 Obligations of states, municipalities and political subdivisions - 14,019 2,105 - - 16,124 Non-U.S. governments 28 15,312 5 - - 15,345 Corporate debt - 166,949 2,349 - - 169,298 RMBS - 19,771 11,694 - - 31,465 CMBS - 15,211 922 - - 16,133 CDO/ABS - 9,191 9,814 - - 19,005 Total bonds available for sale 101 244,506 26,889 - - 271,496 Other bond securities: U.S. government and government sponsored entities - 1,845 - - - 1,845 Non-U.S. governments - - - - - - Corporate debt - 12 - - - 12 RMBS - 290 139 - - 429 CMBS - 273 47 - - 320 CDO/ABS - 173 2,512 - - 2,685 Total other bond securities - 2,593 2,698 - - 5,291 Equity securities 929 76 51 - - 1,056 Other invested assets (b) - 102 1,827 - - 1,929 Derivative assets (c) Interest rate contracts - 4,637 - - - 4,637 Foreign exchange contracts - 1,020 2 - - 1,022 Equity contracts 9 923 198 - - 1,130 Credit contracts - - 2 - - 2 Other contracts - - 14 - - 14 Counterparty netting and cash collateral - - - ( 3,812) ( 2,219) ( 6,031) Total derivative assets 9 6,580 216 ( 3,812) ( 2,219) 774 Short-term investments 2,379 3,589 - - - 5,968 Other assets - - 113 - - 113 Separate account assets 96,560 3,730 - - - 100,290 Total $ 99,978 $ 261,176 $ 31,794 $ ( 3,812) $ ( 2,219) $ 386,917 Liabilities: Policyholder contract deposits $ - $ - $ 9,798 $ - $ - $ 9,798 Derivative liabilities (c) Interest rate contracts 1 4,435 - - - 4,436 Foreign exchange contracts - 1,090 - - - 1,090 Equity contracts 14 162 47 - - 223 Credit contracts - 23 44 - - 67 Other contracts - - 6 - - 6 Counterparty netting and cash collateral - - - ( 3,812) ( 1,441) ( 5,253) Total derivative liabilities 15 5,710 97 ( 3,812) ( 1,441) 569 Fortitude Re funds withheld payable - - 6,042 - - 6,042 Other liabilities - 1 - - - 1 Long-term debt - 2,097 - - - 2,097 Total $ 15 $ 7,808 $ 15,937 $ ( 3,812) $ ( 1,441) $ 18,507 (a) Represents netting of derivative exposures covered by qualifying master netting agreements. (b) Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $ 8.4 billion and $ 6.5 billion as of December 31, 2021 and December 31, 2020, respectively. (c) Presented as part of Other assets and Other liabilities on the Consolidated Balance Sheets. |
Changes in Level 3 recurring fair value measurements (Assets) | Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive Gains Issuances (Losses) Included Income (Loss) for Fair Value (Losses) Other and Gross Gross Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers End Instruments Held Instruments Held (in millions) of Year in Income Income (Loss) Net In Out Other of Year at End of Year at End of Year December 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,105 $ 15 $ ( 9) $ ( 358) $ - $ ( 260) $ ( 62) $ 1,431 $ - $ 254 Non-U.S. governments 5 - ( 1) 1 5 ( 3) - 7 - - Corporate debt 2,349 ( 20) ( 31) 188 524 ( 369) - 2,641 - ( 141) RMBS 11,694 595 ( 127) ( 1,163) 8 ( 629) - 10,378 - 790 CMBS 922 25 ( 49) 414 57 ( 179) - 1,190 - ( 55) CDO/ABS 9,814 38 ( 122) 1,588 1,138 ( 1,241) - 11,215 - 315 Total bonds available for sale 26,889 653 ( 339) 670 1,732 ( 2,681) ( 62) 26,862 - 1,163 Other bond securities: Corporate debt - ( 1) - 135 - - - 134 ( 1) - RMBS 139 3 - 54 - - - 196 ( 87) - CMBS 47 ( 3) - ( 15) 6 - - 35 2 - CDO/ABS 2,512 28 - ( 208) - - - 2,332 127 - Total other bond securities 2,698 27 - ( 34) 6 - - 2,697 41 - Equity securities 51 11 1 ( 123) 77 ( 11) - 6 3 - Other invested assets 1,827 641 ( 14) ( 570) 64 - - 1,948 617 - Other assets 113 - - 1 - - - 114 - - Total $ 31,578 $ 1,332 $ ( 352) $ ( 56) $ 1,879 $ ( 2,692) $ ( 62) $ 31,627 $ 661 $ 1,163 Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive (Gains) Issuances (Losses) Included Income (Loss) for Fair Value Losses Other and Gross Gross Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers End Instruments Held Instruments Held (in millions) of Year in Income Income (Loss) Net In Out Other of Year at End of Year at End of Year Liabilities: Policyholder contract deposits $ 9,798 $ ( 545) $ - $ 484 $ - $ ( 55) $ - $ 9,682 $ 1,860 $ - Derivative liabilities, net: Interest rate contracts - ( 1) - 1 - - - - 1 - Foreign exchange contracts ( 2) - - 1 - - - ( 1) - - Equity contracts ( 151) ( 75) - ( 271) - 53 - ( 444) 32 - Credit contracts 42 9 - ( 21) - - - 30 1 - Other contracts ( 8) ( 66) - 61 - - - ( 13) 66 - Total derivative liabilities, net (a) ( 119) ( 133) - ( 229) - 53 - ( 428) 100 - Fortitude Re funds withheld payable 6,042 603 - ( 723) - - - 5,922 2,094 - Total $ 15,721 $ ( 75) $ - $ ( 468) $ - $ ( 2) $ - $ 15,176 $ 4,054 $ - Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive Gains Issuances (Losses) Included Income (Loss) for Fair Value (Losses) Other and Gross Gross Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers Divested End Instruments Held Instruments Held (in millions) of Year in Income Income (Loss) Net In Out Businesses of Year at End of Year at End of Year December 31, 2020 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,121 $ 7 $ 211 $ 123 $ 27 $ ( 384) $ - $ 2,105 $ - $ 208 Non-U.S. governments - - - 4 7 ( 6) - 5 - - Corporate debt 1,663 ( 110) 65 11 1,482 ( 762) - 2,349 - 79 RMBS 13,408 745 ( 337) ( 1,200) 29 ( 951) - 11,694 - ( 172) CMBS 1,053 18 60 ( 1) 23 ( 231) - 922 - 55 CDO/ABS 7,686 35 123 359 2,531 ( 920) - 9,814 - 106 Total bonds available for sale 25,931 695 122 ( 704) 4,099 ( 3,254) - 26,889 - 276 Other bond securities: RMBS 143 9 - ( 13) - - - 139 5 - CMBS 50 - - ( 3) - - - 47 ( 2) - CDO/ABS 3,545 293 - ( 1,326) - - - 2,512 17 - Total other bond securities 3,738 302 - ( 1,342) - - - 2,698 20 - Equity securities 8 ( 1) 6 35 40 ( 37) - 51 - - Other invested assets 1,192 100 ( 3) 388 150 - - 1,827 51 - Other assets 89 - - 62 - - ( 38) 113 - - Total $ 30,958 $ 1,096 $ 125 $ ( 1,561) $ 4,289 $ ( 3,291) $ ( 38) $ 31,578 $ 71 $ 276 Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive (Gains) Issuances (Losses) Included Income (Loss) for Fair Value Losses Other and Gross Gross Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers Divested End Instruments Held Instruments Held (in millions) of in Income Income (Loss) Net In Out Businesses of at End of at End of Year Liabilities: Policyholder contract deposits $ 6,910 $ 2,681 $ - $ 207 $ - $ - $ - $ 9,798 $ ( 1,515) $ - Derivative liabilities, net: Interest rate contracts - ( 1) - 1 - - - - 2 - Foreign exchange contracts ( 6) 3 - 1 - - - ( 2) 1 - Equity contracts ( 151) 4 - ( 8) ( 1) 5 - ( 151) ( 33) - Credit contracts 62 ( 47) - 27 - - - 42 8 - Other contracts ( 7) ( 63) - 62 - - - ( 8) 62 - Total derivative liabilities, net (a) ( 102) ( 104) - 83 ( 1) 5 - ( 119) 40 - Fortitude Re funds withheld payable - 2,645 - ( 276) - - 3,673 6,042 ( 1,377) - Total $ 6,808 $ 5,222 $ - $ 14 $ ( 1) $ 5 $ 3,673 $ 15,721 $ ( 2,852) $ - (a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. |
Changes in Level 3 recurring fair value measurements (Liabilities) | Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive Gains Issuances (Losses) Included Income (Loss) for Fair Value (Losses) Other and Gross Gross Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers End Instruments Held Instruments Held (in millions) of Year in Income Income (Loss) Net In Out Other of Year at End of Year at End of Year December 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,105 $ 15 $ ( 9) $ ( 358) $ - $ ( 260) $ ( 62) $ 1,431 $ - $ 254 Non-U.S. governments 5 - ( 1) 1 5 ( 3) - 7 - - Corporate debt 2,349 ( 20) ( 31) 188 524 ( 369) - 2,641 - ( 141) RMBS 11,694 595 ( 127) ( 1,163) 8 ( 629) - 10,378 - 790 CMBS 922 25 ( 49) 414 57 ( 179) - 1,190 - ( 55) CDO/ABS 9,814 38 ( 122) 1,588 1,138 ( 1,241) - 11,215 - 315 Total bonds available for sale 26,889 653 ( 339) 670 1,732 ( 2,681) ( 62) 26,862 - 1,163 Other bond securities: Corporate debt - ( 1) - 135 - - - 134 ( 1) - RMBS 139 3 - 54 - - - 196 ( 87) - CMBS 47 ( 3) - ( 15) 6 - - 35 2 - CDO/ABS 2,512 28 - ( 208) - - - 2,332 127 - Total other bond securities 2,698 27 - ( 34) 6 - - 2,697 41 - Equity securities 51 11 1 ( 123) 77 ( 11) - 6 3 - Other invested assets 1,827 641 ( 14) ( 570) 64 - - 1,948 617 - Other assets 113 - - 1 - - - 114 - - Total $ 31,578 $ 1,332 $ ( 352) $ ( 56) $ 1,879 $ ( 2,692) $ ( 62) $ 31,627 $ 661 $ 1,163 Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive (Gains) Issuances (Losses) Included Income (Loss) for Fair Value Losses Other and Gross Gross Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers End Instruments Held Instruments Held (in millions) of Year in Income Income (Loss) Net In Out Other of Year at End of Year at End of Year Liabilities: Policyholder contract deposits $ 9,798 $ ( 545) $ - $ 484 $ - $ ( 55) $ - $ 9,682 $ 1,860 $ - Derivative liabilities, net: Interest rate contracts - ( 1) - 1 - - - - 1 - Foreign exchange contracts ( 2) - - 1 - - - ( 1) - - Equity contracts ( 151) ( 75) - ( 271) - 53 - ( 444) 32 - Credit contracts 42 9 - ( 21) - - - 30 1 - Other contracts ( 8) ( 66) - 61 - - - ( 13) 66 - Total derivative liabilities, net (a) ( 119) ( 133) - ( 229) - 53 - ( 428) 100 - Fortitude Re funds withheld payable 6,042 603 - ( 723) - - - 5,922 2,094 - Total $ 15,721 $ ( 75) $ - $ ( 468) $ - $ ( 2) $ - $ 15,176 $ 4,054 $ - Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive Gains Issuances (Losses) Included Income (Loss) for Fair Value (Losses) Other and Gross Gross Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers Divested End Instruments Held Instruments Held (in millions) of Year in Income Income (Loss) Net In Out Businesses of Year at End of Year at End of Year December 31, 2020 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,121 $ 7 $ 211 $ 123 $ 27 $ ( 384) $ - $ 2,105 $ - $ 208 Non-U.S. governments - - - 4 7 ( 6) - 5 - - Corporate debt 1,663 ( 110) 65 11 1,482 ( 762) - 2,349 - 79 RMBS 13,408 745 ( 337) ( 1,200) 29 ( 951) - 11,694 - ( 172) CMBS 1,053 18 60 ( 1) 23 ( 231) - 922 - 55 CDO/ABS 7,686 35 123 359 2,531 ( 920) - 9,814 - 106 Total bonds available for sale 25,931 695 122 ( 704) 4,099 ( 3,254) - 26,889 - 276 Other bond securities: RMBS 143 9 - ( 13) - - - 139 5 - CMBS 50 - - ( 3) - - - 47 ( 2) - CDO/ABS 3,545 293 - ( 1,326) - - - 2,512 17 - Total other bond securities 3,738 302 - ( 1,342) - - - 2,698 20 - Equity securities 8 ( 1) 6 35 40 ( 37) - 51 - - Other invested assets 1,192 100 ( 3) 388 150 - - 1,827 51 - Other assets 89 - - 62 - - ( 38) 113 - - Total $ 30,958 $ 1,096 $ 125 $ ( 1,561) $ 4,289 $ ( 3,291) $ ( 38) $ 31,578 $ 71 $ 276 Net Changes in Realized Unrealized Gains and Purchases, Changes in (Losses) Included in Unrealized Sales, Unrealized Gains Other Comprehensive (Gains) Issuances (Losses) Included Income (Loss) for Fair Value Losses Other and Gross Gross Fair Value in Income on Recurring Level 3 Beginning Included Comprehensive Settlements, Transfers Transfers Divested End Instruments Held Instruments Held (in millions) of in Income Income (Loss) Net In Out Businesses of at End of at End of Year Liabilities: Policyholder contract deposits $ 6,910 $ 2,681 $ - $ 207 $ - $ - $ - $ 9,798 $ ( 1,515) $ - Derivative liabilities, net: Interest rate contracts - ( 1) - 1 - - - - 2 - Foreign exchange contracts ( 6) 3 - 1 - - - ( 2) 1 - Equity contracts ( 151) 4 - ( 8) ( 1) 5 - ( 151) ( 33) - Credit contracts 62 ( 47) - 27 - - - 42 8 - Other contracts ( 7) ( 63) - 62 - - - ( 8) 62 - Total derivative liabilities, net (a) ( 102) ( 104) - 83 ( 1) 5 - ( 119) 40 - Fortitude Re funds withheld payable - 2,645 - ( 276) - - 3,673 6,042 ( 1,377) - Total $ 6,808 $ 5,222 $ - $ 14 $ ( 1) $ 5 $ 3,673 $ 15,721 $ ( 2,852) $ - (a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. |
Schedule of net realized and unrealized gains and losses related to Level 3 items | Net Investment Net Realized Other (in millions) Income Gains (Losses) Income Total December 31, 2021 Assets: Bonds available for sale $ 654 $ ( 1) $ - $ 653 Other bond securities 27 - - 27 Equity securities 11 - - 11 Other invested assets 630 11 - 641 December 31, 2020 Assets: Bonds available for sale $ 733 $ ( 38) $ - $ 695 Other bond securities 34 268 - 302 Equity securities - ( 1) - ( 1) Other invested assets 98 2 - 100 Net Investment Net Realized Other (in millions) Income (Gains) Losses Income Total December 31, 2021 Liabilities: Policyholder contract deposits * $ - $ ( 545) $ - $ ( 545) Derivative liabilities, net - ( 74) ( 59) ( 133) Fortitude Re funds withheld payable - 603 - 603 December 31, 2020 Liabilities: Policyholder contract deposits * $ - $ 2,681 $ - $ 2,681 Derivative liabilities, net - ( 47) ( 57) ( 104) Fortitude Re funds withheld payable - 2,645 - 2,645 * Primarily embedded derivatives. The following table presents the gross components of purchases, sales, issuances and settlements, net, shown above, for years ended December 31, 2021 and 2020 related to Level 3 assets and liabilities in the Consolidated Balance Sheets: |
Gross components of purchases, sales, issuances and settlements, net | Issuances Purchases, Sales, and Issuances and (in millions) Purchases Sales Settlements (a) Settlements, Net (a) December 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 55 $ ( 247) $ ( 166) $ ( 358) Non-U.S. governments 1 - - 1 Corporate debt 973 ( 95) ( 690) 188 RMBS 1,567 ( 280) ( 2,450) ( 1,163) CMBS 510 ( 15) ( 81) 414 CDO/ABS 4,409 70 ( 2,891) 1,588 Total bonds available for sale 7,515 ( 567) ( 6,278) 670 Other bond securities: Corporate debt 86 - 49 135 RMBS 54 ( 10) 10 54 CMBS - ( 15) - ( 15) CDO/ABS 320 ( 39) ( 489) ( 208) Total other bond securities 460 ( 64) ( 430) ( 34) Equity securities 2 ( 3) ( 122) ( 123) Other invested assets 578 - ( 1,148) ( 570) Other assets - - 1 1 Total $ 8,555 $ ( 634) $ ( 7,977) $ ( 56) Liabilities: Policyholder contract deposits $ - $ 818 $ ( 334) $ 484 Derivative liabilities, net ( 281) 6 46 ( 229) Fortitude Re funds withheld payable - - ( 723) ( 723) Total $ ( 281) $ 824 $ ( 1,011) $ ( 468) December 31, 2020 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 219 $ ( 20) $ ( 76) $ 123 Non-U.S. governments 7 ( 2) ( 1) 4 Corporate debt 300 ( 24) ( 265) 11 RMBS 1,118 ( 33) ( 2,285) ( 1,200) CMBS 56 ( 17) ( 40) ( 1) CDO/ABS 1,904 ( 408) ( 1,137) 359 Total bonds available for sale 3,604 ( 504) ( 3,804) ( 704) Other bond securities: RMBS 37 ( 16) ( 34) ( 13) CMBS - - ( 3) ( 3) CDO/ABS 35 ( 579) ( 782) ( 1,326) Total other bond securities 72 ( 595) ( 819) ( 1,342) Equity securities 40 ( 5) - 35 Other invested assets 480 - ( 92) 388 Other assets 55 - 7 62 Total $ 4,251 $ ( 1,104) $ ( 4,708) $ ( 1,561) Liabilities: Policyholder contract deposits $ - $ 713 $ ( 506) $ 207 Derivative liabilities, net ( 68) 8 143 83 Fortitude Re funds withheld payable - - ( 276) ( 276) Total $ ( 68) $ 721 $ ( 639) $ 14 (a) There were issuances during the years ended December 31, 2021 and 2020. |
Significant unobservable inputs used for recurring fair value measurements | Fair Value at December 31, Valuation Range (in millions) 2021 Technique Unobservable Input (b) (Weighted Average) (c) Assets: Obligations of states, municipalities and political subdivisions $ 1,400 Discounted cash flow Yield 2.74% - 3.33% ( 3.06%) Corporate debt 1,561 Discounted cash flow Yield 2.23% - 7.69% ( 4.96%) RMBS (a) 9,916 Discounted cash flow Constant prepayment rate 5.25% - 17.70% ( 11.47%) Loss severity 26.13% - 71.93% ( 49.03%) Constant default rate 1.15% - 5.85% ( 3.50%) Yield 1.69% - 3.97% ( 2.83%) CDO/ABS (a) 8,229 Discounted cash flow Yield 1.84% - 4.77% ( 3.31%) CMBS 580 Discounted cash flow Yield 1.50% - 5.01% ( 3.25%) Liabilities: (d) Embedded derivatives within Policyholder contract deposits: Variable annuity guaranteed minimum withdrawal benefits (GMWB) 2,472 Discounted cash flow Equity volatility 5.95% - 46.65% Base lapse rate 0.16% - 12.60% Dynamic lapse multiplier 20.00% - 186.00% Mortality multiplier (e) 38.00% - 147.00% Utilization 90.00% - 100.00% Equity / interest rate correlation 20.00% - 40.00% NPA (f) 0.01% - 1.40% Index annuities including certain GMWB 6,445 Discounted cash flow Base lapse rate 0.50% - 50.00% Dynamic lapse multiplier 20.00% - 186.00% Mortality multiplier (e) 24.00% - 180.00% Utilization (g) 60.00% - 95.00% Option budget 0.00% - 4.00% NPA (f) 0.01% - 1.40% Indexed life 765 Discounted cash flow Base lapse rate 0.00% - 37.97% Mortality rate 0.00% - 100.00% NPA (f) 0.01% - 1.40% Fair Value at December 31, Valuation Range (in millions) 2020 Technique Unobservable Input (b) (Weighted Average) (c) Assets: Obligations of states, municipalities and political subdivisions $ 1,670 Discounted cash flow Yield 2.82% - 3.39% ( 3.11%) Corporate debt 1,591 Discounted cash flow Yield 2.13% - 7.82% ( 4.97%) RMBS (a) 11,297 Discounted cash flow Constant prepayment rate 3.90% - 11.99% ( 7.94%) Loss severity 30.08% - 78.49% ( 54.29%) Constant default rate 1.45% - 6.19% ( 3.82%) Yield 1.69% - 4.25% ( 2.97%) CDO/ABS (a) 8,324 Discounted cash flow Yield 1.93% - 4.85% ( 3.39%) CMBS 541 Discounted cash flow Yield 0.92% - 5.89% ( 3.40%) Liabilities (d) Embedded derivatives within Policyholder contract deposits: GMWB 3,572 Discounted cash flow Equity volatility 6.45% - 50.85% Base lapse rate 0.16% - 12.60% Dynamic lapse multiplier 50.00% - 143.00% Mortality multiplier (e) 38.00% - 147.00% Utilization 90.00% - 100.00% Equity / interest rate correlation 20.00% - 40.00% NPA (f) 0.06% - 1.48% Index annuities including certain 5,538 Discounted cash flow Base lapse rate 0.38% - 50.00% GMWB Dynamic lapse multiplier 19.00% - 178.00% Mortality multiplier (e) 24.00% - 180.00% Utilization (g) 80.00% - 100.00% Option budget 0.00% - 4.00% NPA (f) 0.06% - 1.48% Indexed life 649 Discounted cash flow Base lapse rate 0.00% - 37.97% Mortality rate 0.00% - 100.00% NPA (f) 0.06% - 1.48% (a) Information received from third-party valuation service providers. The ranges of the unobservable inputs for constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by us, because there are other factors relevant to the fair values of specific tranches owned by us including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points. (b) Represents discount rates, estimates and assumptions that we believe would be used by market participants when valuing these assets and liabilities. (c) The weighted averaging for fixed maturity securities is based on the estimated fair value of the securities. Because the valuation methodology for embedded derivatives within Policyholder contract deposits uses a range of inputs that vary at the contract level over the cash flow projection period, management believes that presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (d) The Fortitude Re funds withheld payable has been excluded from the above table. As discussed in Note 7, the Fortitude Re funds withheld payable is created through modco and funds withheld reinsurance arrangements where the investments supporting the reinsurance agreements are withheld by, and continue to reside on AIG’s balance sheet. This embedded derivative is valued as a total return swap with reference to the fair value of the invested assets held by AIG. Accordingly, the unobservable inputs utilized in the valuation of the embedded derivative are a component of the invested assets supporting the reinsurance agreements that are held on AIG’s balance sheet. (e) Mortality inputs are shown as multipliers of the 2012 Individual Annuity Mortality Basic table. (f) The NPA applied as a spread over risk-free curve for discounting. (g) The partial withdrawal utilization unobservable input range shown applies only to policies with guaranteed minimum withdrawal benefit riders that are accounted for as an embedded derivative. The total embedded derivative liability at December 31, 2021 and 2020 was approximately $ 1.2 billion and $ 726 million, respectively. The remaining guaranteed minimum riders on the index annuities are valued under the accounting guidance for certain nontraditional long-duration contracts. The ranges of reported inputs for Obligations of states, municipalities and political subdivisions, Corporate debt, RMBS, CDO/ABS, and CMBS valued using a discounted cash flow technique consist of one standard deviation in either direction from the value-weighted average. The preceding table does not give effect to our risk management practices that might offset risks inherent in these Level 3 assets and liabilities. |
Investments in certain entities carried at fair value using net asset value per share | December 31, 2021 December 31, 2020 Fair Value Fair Value Using NAV Using NAV Per Share (or Unfunded Per Share (or Unfunded (in millions) Investment Category Includes its equivalent) Commitments its equivalent) Commitments Investment Category Private equity funds: Leveraged buyout Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage $ 2,768 $ 1,798 $ 1,752 $ 1,960 Real assets Investments in real estate properties, agricultural and infrastructure assets, including power plants and other energy producing assets 904 487 908 445 Venture capital Early-stage, high-potential, growth companies expected to generate a return through an eventual realization event, such as an initial public offering or sale of the company 252 201 167 171 Growth equity Funds that make investments in established companies for the purpose of growing their businesses 914 82 703 55 Mezzanine Funds that make investments in the junior debt and equity securities of leveraged companies 534 354 400 155 Other Includes distressed funds that invest in securities of companies that are in default or under bankruptcy protection, as well as funds that have multi-strategy, and other strategies 1,216 408 683 365 Total private equity funds 6,588 3,330 4,613 3,151 Hedge funds: Event-driven Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations 466 - 411 - Long-short Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk 432 - 361 - Macro Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions 516 - 807 - Other Includes investments held in funds that are less liquid, as well as other strategies which allow for broader allocation between public and private investments 416 - 301 1 Total hedge funds 1,830 - 1,880 1 Total $ 8,418 $ 3,330 $ 6,493 $ 3,152 |
Gains or losses related to the eligible instruments for which AIG elected the fair value option | Years Ended December 31, Gain (Loss) (in millions) 2021 2020 2019 Assets: Other bond securities $ ( 12) $ 552 $ 1,046 Alternative investments (a) 1,650 685 591 Liabilities: Long-term debt (b) 66 ( 176) ( 181) Total gain $ 1,704 $ 1,061 $ 1,456 (a) Includes certain hedge funds, private equity funds and other investment partnerships. (b) Includes GIAs, notes, bonds and mortgages payable. |
Difference between fair values and aggregate contractual principal amounts, fair value option | December 31, 2021 December 31, 2020 Outstanding Outstanding (in millions) Fair Value Principal Amount Difference Fair Value Principal Amount Difference Liabilities: Long-term debt * $ 1,871 $ 1,405 $ 466 $ 2,097 $ 1,479 $ 618 * Includes GIAs, notes, bonds, loans and mortgages payable. |
Fair value assets measured on nonrecurring basis and impairment charges | Assets at Fair Value Impairment Charges Non-Recurring Basis December 31, (in millions) Level 1 Level 2 Level 3 Total 2021 2020 2019 December 31, 2021 Other investments $ - $ - $ 104 $ 104 $ 6 $ 77 $ 76 Other assets - - - - 67 14 74 Total $ - $ - $ 104 $ 104 $ 73 $ 91 $ 150 December 31, 2020 Other investments $ - $ - $ 376 $ 376 Other assets - - 28 28 Total $ - $ - $ 404 $ 404 |
Carrying values and estimated fair values of AIG's financial instruments | Estimated Fair Value Carrying (in millions) Level 1 Level 2 Level 3 Total Value December 31, 2021 Assets: Mortgage and other loans receivable $ - $ 82 $ 47,947 $ 48,029 $ 46,033 Other invested assets - 871 6 877 878 Short-term investments - 8,931 - 8,931 8,931 Cash 2,198 - - 2,198 2,198 Other assets 21 11 - 32 32 Liabilities: Policyholder contract deposits associated with investment-type contracts - 169 142,974 143,143 133,043 Fortitude Re funds withheld payable - - 34,849 34,849 34,849 Other liabilities - 3,704 - 3,704 3,704 Long-term debt - 24,758 336 25,094 21,870 Debt of consolidated investment entities - 3,077 3,313 6,390 6,422 Separate account liabilities - investment contracts - 104,126 - 104,126 104,126 December 31, 2020 Assets: Mortgage and other loans receivable $ - $ 95 $ 48,541 $ 48,636 $ 45,562 Other invested assets - 837 6 843 843 Short-term investments - 12,235 - 12,235 12,235 Cash 2,827 - - 2,827 2,827 Other assets 209 14 - 223 223 Liabilities: Policyholder contract deposits associated with investment-type contracts - 214 144,357 144,571 130,435 Fortitude Re funds withheld payable - - 37,018 37,018 37,018 Other liabilities - 3,695 - 3,695 3,695 Long-term debt - 30,310 365 30,675 26,006 Debt of consolidated investment entities - 1,746 7,965 9,711 9,431 Separate account liabilities - investment contracts - 95,610 - 95,610 95,610 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Line Items] | |
Amortized cost or cost and fair value of available for sale securities | December 31, 2021 Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair (in millions) Cost Losses (a) Gains Losses Value Bonds available for sale: U.S. government and government sponsored entities $ 7,874 $ - $ 347 $ ( 27) $ 8,194 Obligations of states, municipalities and political subdivisions 12,760 - 1,782 ( 15) 14,527 Non-U.S. governments 15,858 - 719 ( 247) 16,330 Corporate debt 163,064 ( 89) 13,892 ( 1,259) 175,608 Mortgage-backed, asset-backed and collateralized: RMBS 25,027 ( 9) 2,422 ( 153) 27,287 CMBS 15,333 - 555 ( 79) 15,809 CDO/ABS 19,294 - 276 ( 123) 19,447 Total mortgage-backed, asset-backed and collateralized 59,654 ( 9) 3,253 ( 355) 62,543 Total bonds available for sale (b) $ 259,210 $ ( 98) $ 19,993 $ ( 1,903) $ 277,202 December 31, 2020 Bonds available for sale: U.S. government and government sponsored entities $ 3,640 $ - $ 503 $ ( 17) $ 4,126 Obligations of states, municipalities and political subdivisions 13,915 - 2,216 ( 7) 16,124 Non-U.S. governments 14,231 ( 4) 1,181 ( 63) 15,345 Corporate debt 150,111 ( 164) 19,905 ( 554) 169,298 Mortgage-backed, asset-backed and collateralized: RMBS 28,551 ( 16) 3,000 ( 70) 31,465 CMBS 15,182 ( 1) 1,023 ( 71) 16,133 CDO/ABS 18,707 ( 1) 425 ( 126) 19,005 Total mortgage-backed, asset-backed and collateralized 62,440 ( 18) 4,448 ( 267) 66,603 Total bonds available for sale (b) $ 244,337 $ ( 186) $ 28,253 $ ( 908) $ 271,496 (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 Other comprehensive income (loss). (b) At December 31, 2021 and 2020, bonds available for sale held by us that were below investment grade or not rated totaled $ 27.0 billion and $ 28.2 billion, respectively. |
Securities available for sale in a loss position | Less than 12 Months 12 Months or More Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (in millions) Value Losses Value Losses Value Losses December 31, 2,021.0 Bonds available for sale: U.S. government and government sponsored entities $ 3,696 $ 14 $ 447 $ 13 $ 4,143 $ 27 Obligations of states, municipalities and political subdivisions 714 11 57 4 771 15 Non-U.S. governments 4,644 115 1,324 132 5,968 247 Corporate debt 31,914 720 8,819 467 40,733 1,187 RMBS 5,362 102 1,154 46 6,516 148 CMBS 3,980 63 153 16 4,133 79 CDO/ABS 8,263 112 339 11 8,602 123 Total bonds available for sale $ 58,573 $ 1,137 $ 12,293 $ 689 $ 70,866 $ 1,826 December 31, 2020 Bonds available for sale: U.S. government and government sponsored entities $ 649 $ 17 $ - $ - $ 649 $ 17 Obligations of states, municipalities and political subdivisions 267 4 78 3 345 7 Non-U.S. governments 1,287 28 262 33 1,549 61 Corporate debt 11,715 348 1,283 81 12,998 429 RMBS 3,486 40 282 18 3,768 58 CMBS 1,644 58 346 12 1,990 70 CDO/ABS 5,456 81 3,063 45 8,519 126 Total bonds available for sale $ 24,504 $ 576 $ 5,314 $ 192 $ 29,818 $ 768 |
Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity | Total Fixed Maturity Securities Available for Sale Amortized Cost, (in millions) Net of Allowance Fair Value December 31, 2021 Due in one year or less $ 7,582 $ 7,634 Due after one year through five years 48,204 49,347 Due after five years through ten years 46,218 48,587 Due after ten years 97,463 109,091 Mortgage-backed, asset-backed and collateralized 59,645 62,543 Total $ 259,112 $ 277,202 |
Gross realized gains and gross realized losses from sales or maturities of available for sale securities | Years Ended December 31, 2021 2020 2019 Gross Gross Gross Gross Gross Gross Realized Realized Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Gains Losses Fixed maturity securities $ 1,369 $ 441 $ 1,824 $ 810 $ 650 $ 330 |
Value of other securities measured at fair value based on election of the fair value option | December 31, 2021 December 31, 2020 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 1,750 25 % $ 1,845 29 % Obligations of states, municipalities and political subdivisions 97 1 - - Non-U.S. governments 76 1 - - Corporate debt 1,050 15 12 - Mortgage-backed, asset-backed and collateralized : RMBS 411 6 429 7 CMBS 315 4 320 5 CDO/ABS and other collateralized 2,579 37 2,685 42 Total mortgage-backed, asset-backed and collateralized 3,305 47 3,434 54 Total fixed maturity securities 6,278 89 5,291 83 Equity securities 739 11 1,056 17 Total $ 7,017 100 % $ 6,347 100 % |
Carrying amounts values of other invested assets | December 31, December 31, (in millions) 2021 2020 Alternative investments (a) (b) $ 10,951 $ 9,572 Investment real estate (c) 2,727 7,930 All other investments (d) 1,990 1,558 Total $ 15,668 $ 19,060 (a) At December 31, 2021, included hedge funds of $ 2.0 billion and private equity funds of $ 8.9 billion. At December 31, 2020, included hedge funds of $ 2.3 billion, private equity funds of $ 7.0 billion, and unconsolidated affordable housing partnerships of $ 257 million. (b) At December 31, 2021, approximately 62 percent of our hedge fund portfolio is available for redemption in 2022. The remaining 38 percent will be available for redemption between 2023 and 2028. (c) Represents values net of accumulated depreciation. At December 31, 2021 and 2020, the accumulated depreciation was $ 778 million and $ 756 million, respectively, excluding depreciation related to our affordable housing portfolio that has been sold. (d) Includes AIG’s 3.5 percent ownership interest in Fortitude Holdings which is recorded using the measurement alternative for equity securities and is carried at cost, which was $ 100 million as of December 31, 2021 and 2020. |
Summarized financial information of AIG's equity method investees | Years Ended December 31, (in millions) 2021 2020 2019 Operating results: Total revenues $ 31,560 $ 13,090 $ 8,045 Total expenses ( 2,241) ( 2,897) ( 3,115) Net income $ 29,319 $ 10,193 $ 4,930 At December 31, (in millions) 2021 2020 Balance sheet: Total assets $ 105,837 $ 85,083 Total liabilities $ ( 12,779) $ ( 10,462) |
The carrying value and ownership percentage of AIA and equity method investments | 2021 2020 Carrying Ownership Carrying Ownership (in millions) Value Percentage Value Percentage Equity method investments $ 5,145 Various $ 4,548 Various |
Components of net investment income | Years Ended December 31, 2021 2020 2019 Excluding Fortitude Re Excluding Fortitude Re Fortitude Funds Fortitude Funds Re Funds Withheld Re Funds Withheld (in millions) Withheld Assets Assets Total Withheld Assets Assets Total Total Available for sale fixed maturity securities, including short-term investments $ 8,583 $ 1,468 $ 10,051 $ 9,508 $ 851 $ 10,359 $ 10,768 Other fixed maturity securities (a) ( 19) 7 ( 12) 540 13 553 1,015 Equity securities ( 237) - ( 237) 200 - 200 159 Interest on mortgage and other loans 1,745 207 1,952 1,883 106 1,989 2,030 Alternative investments (b) 2,579 321 2,900 913 99 1,012 1,088 Real estate 225 - 225 195 - 195 304 Other investments (c) 250 5 255 ( 120) 1 ( 119) ( 220) Total investment income 13,126 2,008 15,134 13,119 1,070 14,189 15,144 Investment expenses 485 37 522 541 17 558 525 Net investment income $ 12,641 $ 1,971 $ 14,612 $ 12,578 $ 1,053 $ 13,631 $ 14,619 (a) Included in the years ended December 31, 2021, 2020 and 2019 was income (loss) of $( 49) million, $ 195 million and $ 177 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, 2021, 2020 and 2019 was income (loss) of $ 65 million, $( 162) million and $( 161) million, respectively, related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above. |
Components of net realized gains (losses) | Years Ended December 31, 2021 2020 2019 Excluding Fortitude Re Excluding Fortitude Re Fortitude Re Funds Fortitude Re Funds Funds Withheld Funds Withheld (in millions) Withheld Assets Assets Total Withheld Assets Assets Total Total Sales of fixed maturity securities $ 211 $ 717 $ 928 $ 307 $ 707 $ 1,014 $ 320 Other-than-temporary impairments - - - - - - ( 174) Intent to sell (a) - - - ( 3) - ( 3) - Change in allowance for credit losses on fixed maturity securities 19 7 26 ( 270) ( 10) ( 280) - Change in allowance for credit losses on loans 163 9 172 ( 105) 2 ( 103) ( 46) Foreign exchange transactions 16 ( 5) 11 365 13 378 227 Variable annuity embedded derivatives, net of related hedges ( 39) - ( 39) 166 - 166 ( 294) All other derivatives and hedge accounting 179 28 207 ( 672) ( 249) ( 921) ( 22) Other (b) 1,202 247 1,449 156 - 156 621 Net realized gains – excluding Fortitude Re funds withheld embedded derivative 1,751 1,003 2,754 ( 56) 463 407 632 Net realized gains (losses) on Fortitude Re funds withheld embedded derivative - ( 603) ( 603) - ( 2,645) ( 2,645) - Net realized gains (losses) $ 1,751 $ 400 $ 2,151 $ ( 56) $ ( 2,182) $ ( 2,238) $ 632 (a) In 2019, Intent to sell was included in Other-than-temporary impairments. (b) In 2021, primarily includes gains from sale of global real estate investments of $ 1.1 billion and gains from affordable housing partnerships of $ 208 million. In 2019, includes $ 200 million from the sale and concurrent leaseback of our corporate headquarters and $ 300 million as a result of sales in investment real estate properties. |
Rollforward of changes in allowance for credit losses on available for sale fixed maturity securities by major investment category | Years Ended December 31, 2021 2020 Non- Non- (in millions) Structured Structured Total Structured Structured Total Balance, beginning of year* $ 17 $ 169 $ 186 $ 7 $ - $ 7 Additions: Securities for which allowance for credit losses were not previously recorded 9 56 65 38 290 328 Purchases of available for sale debt securities accounted for as purchased credit deteriorated assets - - - 26 - 26 Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets - - - 1 - 1 Reductions: Securities sold during the period ( 4) ( 29) ( 33) ( 5) ( 26) ( 31) 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 ( 14) ( 77) ( 91) ( 50) 33 ( 17) Write-offs charged against the allowance - ( 29) ( 29) - ( 128) ( 128) Balance, end of year $ 8 $ 90 $ 98 $ 17 $ 169 $ 186 * The beginning balance incorporates the Day 1 gross up on PCD assets held as of January 1, 2020. |
Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings | Year Ended December 31, (in millions) 2019 Balance, beginning of year $ - Increases due to: Credit impairments on new securities subject to impairment losses 136 Additional credit impairments on previously impaired securities 17 Reductions due to: Credit impaired securities fully disposed for which there was no prior intent or requirement to sell ( 64) Accretion on securities previously impaired due to credit * ( 20) Balance, end of year $ 69 * Represents both accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities and the accretion due to the passage of time. |
Reconciliation of purchase price to unpaid principal balance of securities purchased with credit deterioration | Years Ended December 31, (in millions) 2021 2020 Unpaid principal balance $ - $ 644 Allowance for expected credit losses at acquisition - ( 26) Purchase (discount) premium - ( 149) Purchase price $ - $ 469 |
Schedule of fair value of securities pledged to counterparties under secured financing transactions | (in millions) December 31, 2021 December 31, 2020 Fixed maturity securities available for sale $ 3,583 $ 3,636 |
Schedule of fair value of securities pledged under repurchase agreements by collateral type and by remaining contractual maturity | Remaining Contractual Maturity of the Agreements Overnight up to and 30 31 - 90 91 - 364 365 days (in millions) Continuous days days days or greater Total December 31, 2021 Bonds available for sale: Non-U.S. governments $ 48 $ - $ - $ - $ - $ 48 Corporate debt 128 61 22 - - 211 Total $ 176 $ 61 $ 22 $ - $ - $ 259 December 31, 2020 Bonds available for sale: Non-U.S. governments $ 63 $ - $ - $ - $ - $ 63 Corporate debt 96 97 - - - 193 Total $ 159 $ 97 $ - $ - $ - $ 256 Remaining Contractual Maturity of the Agreements Overnight up to and 30 31 - 90 91 - 364 365 days (in millions) Continuous days days days or greater Total December 31, 2021 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ - $ 106 $ - $ - $ 106 Non-U.S. governments - - 43 - - 43 Corporate debt - 534 2,641 - - 3,175 Total $ - $ 534 $ 2,790 $ - $ - $ 3,324 December 31, 2020 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ - $ 103 $ - $ - $ 103 Corporate debt - 982 2,295 - - 3,277 Total $ - $ 982 $ 2,398 $ - $ - $ 3,380 |
Schedule of fair value of securities pledged to the entity under reverse repurchase agreements | (in millions) December 31, 2021 December 31, 2020 Securities collateral pledged to us $ 1,839 $ 5,359 |
Available-for-sale Securities [Member] | |
Investments [Line Items] | |
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments | Years Ended December 31, (in millions) 2021 2020 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ ( 9,255) $ 9,489 Other investments - 2 Total increase (decrease) in unrealized appreciation (depreciation) of investments $ ( 9,255) $ 9,491 |
Equity Securities [Member] | |
Investments [Line Items] | |
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments | Years Ended December 31, 2021 2020 Other Other Invested Invested (in millions) Equities Assets Total Equities Assets Total Net gains (losses) recognized during the period on equity securities and other investments $ ( 237) $ 2,028 $ 1,791 $ 200 $ 832 $ 1,032 Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the year ( 180) 114 ( 66) ( 23) 46 23 Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date $ ( 57) $ 1,914 $ 1,857 $ 223 $ 786 $ 1,009 |
LENDING ACTIVITIES (Tables)
LENDING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LENDING ACTIVITIES | |
Composition of Mortgages and other loans receivable | December 31, December 31, (in millions) 2021 2020 Commercial mortgages (a) $ 35,665 $ 36,424 Residential mortgages 5,492 4,645 Life insurance policy loans 1,843 1,986 Commercial loans, other loans and notes receivable (b) 3,677 3,321 Total mortgage and other loans receivable 46,677 46,376 Allowance for credit losses (c) ( 629) ( 814) Mortgage and other loans receivable, net $ 46,048 $ 45,562 (a) Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 21 percent and 10 percent, respectively, at December 31, 2021 and 24 percent and 10 percent, respectively, at December 31, 2020). (b) Includes loans held for sale which are carried at lower of cost or market and are collateralized primarily by hotels. As of December 31, 2021, the net carrying value of these loans was $ 15 million. (c) Does not include allowance for credit losses of $ 71 million and $ 79 million, respectively, at December 31, 2021 and 2020, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities. |
Schedule of debt service coverage ratio and loan-to-value ratio for the commercial mortgage loans | December 31, 2021 (in millions) 2021 2020 2019 2018 2017 Prior Total >1.2X $ 2,245 $ 1,662 $ 5,126 $ 3,926 $ 3,557 $ 10,796 $ 27,312 1.00 - 1.20X 574 1,019 700 1,138 136 1,929 5,496 <1.00X 1 27 71 925 41 1,792 2,857 Total commercial mortgages $ 2,820 $ 2,708 $ 5,897 $ 5,989 $ 3,734 $ 14,517 $ 35,665 December 31, 2020 (in millions) 2020 2019 2018 2017 2016 Prior Total >1.2X $ 1,914 $ 5,596 $ 5,649 $ 3,941 $ 4,592 $ 10,730 $ 32,422 1.00 - 1.20X 770 467 456 144 161 1,106 3,104 <1.00X 4 86 343 87 96 282 898 Total commercial mortgages $ 2,688 $ 6,149 $ 6,448 $ 4,172 $ 4,849 $ 12,118 $ 36,424 December 31, 2021 (in millions) 2021 2020 2019 2018 2017 Prior Total Less than 65% $ 2,286 $ 2,272 $ 4,149 $ 4,815 $ 2,892 $ 9,902 $ 26,316 65% to 75% 372 410 1,748 1,174 406 3,490 7,600 76% to 80% - - - - 188 274 462 Greater than 80% 162 26 - - 248 851 1,287 Total commercial mortgages $ 2,820 $ 2,708 $ 5,897 $ 5,989 $ 3,734 $ 14,517 $ 35,665 December 31, 2020 (in millions) 2020 2019 2018 2017 2016 Prior Total Less than 65% $ 2,382 $ 3,755 $ 3,855 $ 2,565 $ 2,852 $ 8,145 $ 23,554 65% to 75% 274 2,330 2,363 1,306 1,200 2,551 10,024 76% to 80% 28 45 30 - 70 515 688 Greater than 80% 4 19 200 301 727 907 2,158 Total commercial mortgages $ 2,688 $ 6,149 $ 6,448 $ 4,172 $ 4,849 $ 12,118 $ 36,424 (a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 1.9X at December 31, 2021 and 2.2X at December 31, 2020. The debt service coverage ratios have been updated within the last three months. The debt service coverage ratios are updated when additional relevant information becomes available. (b) The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 57 percent at December 31, 2021 and was 60 percent at December 31, 2020. The loan-to-value ratios have been updated within the last three months. |
Schedule of credit quality performance indicators for the commercial mortgages | Number Percent of Class of (dollars in millions) Loans Apartments Offices Retail Industrial Hotel Others Total Total $ December 31, 2021 Credit Quality Performance Indicator: In good standing 636 $ 14,267 $ 9,695 $ 4,778 $ 3,858 $ 1,985 $ 432 $ 35,015 98 % Restructured (a) 8 - 354 25 - 136 - 515 2 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure 5 - 81 54 - - - 135 - Total (b) 649 $ 14,267 $ 10,130 $ 4,857 $ 3,858 $ 2,121 $ 432 $ 35,665 100 % Allowance for credit losses $ 109 $ 247 $ 103 $ 47 $ 31 $ 8 $ 545 2 % December 31, 2020 Credit Quality Performance Indicator: In good standing 688 $ 13,969 $ 10,506 $ 5,144 $ 3,766 $ 2,064 $ 460 $ 35,909 99 % Restructured (a) 5 - 52 50 - 4 - 106 - 90 days or less delinquent 3 - 87 - - 114 - 201 - >90 days delinquent or in process of foreclosure 4 - 67 55 - 86 - 208 1 Total (b) 700 $ 13,969 $ 10,712 $ 5,249 $ 3,766 $ 2,268 $ 460 $ 36,424 100 % Allowance for credit losses $ 145 $ 267 $ 145 $ 53 $ 65 $ 10 $ 685 2 % (a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see below. (b) Does not reflect allowance for credit losses. The following table presents credit quality performance indicators for residential mortgages by year of vintage: December 31, 2021 (in millions) 2021 2020 2019 2018 2017 Prior Total FICO*: 780 and greater $ 1,601 $ 691 $ 297 $ 107 $ 192 $ 501 $ 3,389 720 - 779 1,306 230 86 44 58 154 1,878 660 - 719 48 42 22 12 20 49 193 600 - 659 1 1 2 3 2 12 21 Less than 600 - - 1 1 2 7 11 Total residential mortgages $ 2,956 $ 964 $ 408 $ 167 $ 274 $ 723 $ 5,492 December 31, 2020 (in millions) 2020 2019 2018 2017 2016 Prior Total FICO*: 780 and greater $ 522 $ 619 $ 283 $ 469 $ 539 $ 484 $ 2,916 720 - 779 478 349 103 155 180 156 1,421 660 - 719 19 61 28 42 51 58 259 600 - 659 1 5 6 7 4 12 35 Less than 600 - - 1 2 2 9 14 Total residential mortgages $ 1,020 $ 1,034 $ 421 $ 675 $ 776 $ 719 $ 4,645 * Fair Isaac Corporation (FICO) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last twelve months. |
Schedule of changes in the allowance for credit losses on Mortgage and other loans receivable | Years Ended December 31, 2021 2020 2019 Commercial Other Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 685 $ 129 $ 814 $ 336 $ 102 $ 438 $ 318 $ 79 $ 397 Initial allowance upon CECL adoption - - - 311 7 318 - - - Loans charged off ( 2) - ( 2) ( 12) ( 5) ( 17) ( 2) ( 3) ( 5) Recoveries of loans previously charged off - - - - - - - - - Net charge-offs ( 2) - ( 2) ( 12) ( 5) ( 17) ( 2) ( 3) ( 5) Addition to (release of) allowance for loan losses ( 138) ( 26) ( 164) 50 25 75 20 26 46 Divestitures - ( 19) ( 19) - - - - - - Allowance, end of year $ 545 $ 84 $ 629 $ 685 $ 129 $ 814 $ 336 (b) $ 102 $ 438 (a) Does not include allowance for credit losses of $ 71 million and $ 79 million, respectively, at December 31, 2021 and 2020 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities. (b) The December 31, 2019 total allowance was calculated prior to the adoption of ASC 326 on January 1, 2020. Of the total allowance, $ 10 million relates to individually assessed credit losses on $ 148 million of commercial mortgages at December 31, 2020. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Effects of Reinsurance [Line Items] | |
Summary of the composition of pool of assets | December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair (in millions) Value Value Value Value Corresponding Accounting Policy Fixed maturity securities - available for sale (a) $ 31,815 $ 31,815 $ 36,047 $ 36,047 Fair value through other comprehensive income (loss) Fixed maturity securities - fair value option 1,983 1,983 200 200 Fair value through net investment income Commercial mortgage loans 3,637 3,859 3,679 4,010 Amortized cost Real estate investments 201 395 358 585 Amortized cost Private equity funds / hedge funds 1,606 1,606 1,168 1,168 Fair value through net investment income Policy loans 380 380 413 413 Amortized cost Short-term investments 50 50 34 34 Fair value through net investment income Funds withheld investment assets 39,672 40,088 41,899 42,457 Derivative assets, net (b) 81 81 ( 1) ( 1) Fair value through net realized gains (losses) Other (c) 602 602 604 604 Amortized cost Total $ 40,355 $ 40,771 $ 42,502 $ 43,060 (a) The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $( 2.2) billion ($( 1.8) billion after-tax) for 2021 and $ 1.0 billion ($ 812 million after-tax) during the post deconsolidation period (June 2, 2020-December 31, 2020). (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 $ 389 million and $ 10 million, respectively, as of December 31, 2021. The derivative assets supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 357 million as of December 31, 2020. 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 | Years Ended December 31, (in millions) 2021 2020 Net underwriting income (a) $ - $ - Net investment income - Fortitude Re funds withheld assets 1,971 1,053 Net realized gains (losses) on Fortitude Re funds withheld assets: Net realized gains - Fortitude Re funds withheld assets 1,003 463 Net realized losses - Fortitude Re embedded derivatives ( 603) ( 2,645) Net realized gains (losses) on Fortitude Re funds withheld assets 400 ( 2,182) Income (loss) from continuing operations before income tax expense (benefit) 2,371 ( 1,129) Income tax expense (benefit) (b) 499 ( 237) Net income (loss) 1,872 ( 892) Change in unrealized appreciation (depreciation) of all other investments (b) ( 1,760) 812 Comprehensive income (loss) $ 112 $ ( 80) (a) Effective in the second quarter of 2021, an amendment was made to the purchase agreement to finalize the post-closing purchase price adjustment for adverse reserve development and as a result, during 2021, AIG recognized a $ 21 million benefit through Policyholder benefits and losses incurred. (b) The income tax expense (benefit) and the tax impact in AOCI was computed using AIG’s U.S. statutory tax rate of 21 percent. |
Supplemental information for gross loss and benefit reserves net of ceded reinsurance | At December 31, 2021 2020 (b) As Net of As Net of (in millions) Reported Reinsurance Reported Reinsurance Liability for unpaid losses and loss adjustment expenses $ ( 79,026) $ ( 43,678) $ ( 77,720) $ ( 43,154) Future policy benefits for life and accident and health insurance contracts ( 59,950) ( 33,964) ( 56,878) ( 30,692) Policyholder contract deposits ( 156,686) ( 152,266) ( 154,470) ( 149,501) Reserve for unearned premiums ( 19,313) ( 15,028) ( 18,660) ( 14,606) Other policyholder funds ( 3,476) ( 2,885) ( 3,548) ( 2,933) Reinsurance assets (a) 70,630 70,390 (a) Reinsurance assets excludes (i) allowance for credit losses and disputes of $ 333 million and $ 326 million (of which $ 135 million pertains to CECL reserve for Liability for unpaid losses and loss adjustment expenses) for both years ended December 31, 2021 and 2020, respectively, (ii) paid loss recoveries of $ 3,645 million and $ 3,157 million for the years ended December 31, 2021 and 2020, respectively, and (iii) policy and contract claims recoverable of $ 342 million and $ 320 million for the years ended December 31, 2021 and 2020, respectively. (b) Liabilities for certain universal life products were reclassified from Policyholder contract deposits to Future policy benefits for life and accident and health insurance contracts. For additional information, see Note 1. |
Schedule of long-duration insurance in force ceded to other insurance companies | At December 31, (in millions) 2021 2020 * 2019 Long-duration insurance in force ceded $ 363,008 $ 349,453 $ 264,732 * The Long-duration insurance in force ceded in 2020 has been revised from $ 292.5 billion to $ 349.5 billion to correct Long-duration insurance in force ceded in 2020. This correction has no impact on AIG’s consolidated financial statements and is not considered material to previously issued financial statements. |
Schedule of rollforward of allowance for credit losses | Years Ended December 31, 2021 2020 General Life and General Life and (in millions) Insurance Retirement Total Insurance Retirement Total Balance, beginning of year $ 292 $ 83 $ 375 $ 111 $ 40 $ 151 Initial allowance upon CECL adoption - - - 202 22 224 Addition to (release of) allowance for expected credit losses and disputes, net 6 18 24 ( 12) 21 9 Write-offs charged against the allowance for credit losses and disputes ( 17) - ( 17) ( 9) - ( 9) Balance, end of year $ 281 $ 101 $ 382 $ 292 $ 83 $ 375 |
Short-Duration Reinsurance | |
Effects of Reinsurance [Line Items] | |
Schedule of insurance premiums written and earned | Years Ended December 31, (in millions) 2021 2020 2019 Premiums written: Direct $ 30,910 $ 28,521 $ 29,338 Assumed 7,209 5,947 5,808 Ceded ( 11,702) ( 11,012) ( 9,692) Net $ 26,417 $ 23,456 $ 25,454 Premiums earned: Direct $ 30,279 $ 28,596 $ 30,017 Assumed 6,640 5,984 6,395 Ceded ( 11,301) ( 10,435) ( 9,526) Net $ 25,618 $ 24,145 $ 26,886 |
Long-Duration Reinsurance | |
Effects of Reinsurance [Line Items] | |
Schedule of insurance premiums written and earned | Years Ended December 31, (in millions) 2021 2020 2019 Premiums Direct $ 4,596 $ 4,381 $ 4,363 Assumed 2,265 1,058 228 Ceded ( 1,220) ( 1,061) ( 916) Net $ 5,641 $ 4,378 $ 3,675 Policy Fees Direct $ 3,130 $ 2,957 $ 3,016 Assumed - - - Ceded ( 79) ( 40) ( 1) Net $ 3,051 $ 2,917 $ 3,015 |
DEFERRED POLICY ACQUISITION C_2
DEFERRED POLICY ACQUISITION COSTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
DEFERRED POLICY ACQUISITION COSTS | |
Rollforward of DAC | Years Ended December 31, (in millions) 2021 2020 2019 Balance, beginning of year $ 9,679 $ 10,890 $ 12,256 Acquisition costs deferred 4,666 4,292 5,403 Amortization expense ( 4,562) ( 4,188) ( 4,993) Change related to unrealized appreciation (depreciation) of investments 773 ( 1,116) ( 1,758) Dispositions - ( 298) - Other, including foreign exchange ( 153) 99 ( 18) Balance, end of year (a) $ 10,403 $ 9,679 $ 10,890 (a) Net of cumulative reductions in DAC of $ 2.4 billion, $ 3.1 billion and $ 2.0 billion at December 31, 2021, 2020 and 2019, respectively, related to the effect of net unrealized gains and losses on available for sale securities. Years Ended December 31, (in millions) 2021 2020 2019 Balance, beginning of year $ 126 $ 317 $ 438 Amortization expense ( 11) ( 23) ( 171) Change related to unrealized appreciation (depreciation) of investments - 20 ( 10) Dispositions - ( 169) - Other, including foreign exchange ( 4) ( 19) 60 Balance, end of year (a) $ 111 $ 126 $ 317 (a) Net of cumulative reductions in VOBA of $ 2 million, $ 2 million and $ 22 million at December 31, 2021, 2020 and 2019, respectively, related to the effect of net unrealized gains and losses on available for sale securities. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | Real Estate and Affordable Investment Securitization Housing (in millions) Entities (d) Vehicles Partnerships Other Total December 31, 2021 Assets: Bonds available for sale $ - $ 5,543 $ - $ - $ 5,543 Other bond securities - 1,852 - - 1,852 Equity securities 223 - - - 223 Mortgage and other loans receivable - 2,523 - - 2,523 Other invested assets Alternative investments (a) 3,017 - - - 3,017 Investment real estate 2,257 - - - 2,257 Short-term investments 487 151 - - 638 Cash 96 - - - 96 Accrued investment income - 17 - - 17 Other assets 190 558 - - 748 Total (b) $ 6,270 $ 10,644 $ - $ - $ 16,914 Liabilities: Debt of consolidated investment entities $ 1,743 $ 4,504 $ - $ - $ 6,247 Other (c) 122 722 - - 844 Total $ 1,865 $ 5,226 $ - $ - $ 7,091 December 31, 2020 Assets: Bonds available for sale $ - $ 6,089 $ - $ - $ 6,089 Other bond securities - 2,367 - - 2,367 Equity securities 507 - - - 507 Mortgage and other loans receivable - 3,135 - - 3,135 Other invested assets Alternative investments (a) 2,689 - - - 2,689 Investment real estate 3,378 - 3,558 - 6,936 Short-term investments 365 1,534 - 27 1,926 Cash 129 - 203 - 332 Accrued investment income - 38 - - 38 Other assets 169 120 243 2 534 Total (b) $ 7,237 $ 13,283 $ 4,004 $ 29 $ 24,553 Liabilities: Debt of consolidated investment entities $ 2,559 $ 3,961 $ 2,287 $ 2 $ 8,809 Other (c) 180 187 187 10 564 Total $ 2,739 $ 4,148 $ 2,474 $ 12 $ 9,373 (a) Comprised primarily of investments in real estate joint ventures at December 31, 2021 and 2020. (b) The assets of each VIE can be used only to settle specific obligations of that VIE. (c) Comprised primarily of Other liabilities at December 31, 2021 and 2020. (d) At December 31, 2021 and 2020, off-balance sheet exposure primarily consisting of our insurance companies’ commitments to real estate and investment entities were $ 2.2 billion and $ 2.4 billion, respectively, of which commitments to external parties were $ 0.6 billion and $ 0.7 billion, respectively. |
Variable Interest Entity Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | Maximum Exposure to Loss Total VIE On-Balance Off-Balance (in millions) Assets Sheet (b) Sheet Total December 31, 2021 Real estate and investment entities (a) $ 457,335 $ 7,650 $ 3,448 (d) $ 11,098 Other 1,738 237 528 (e) 765 Total $ 459,073 $ 7,887 $ 3,976 $ 11,863 December 31, 2020 Real estate and investment entities (a) $ 321,716 $ 6,420 $ 3,273 (d) $ 9,693 Affordable housing partnerships 2,801 368 (c) 4 372 Other 1,733 195 546 (e) 741 Total $ 326,250 $ 6,983 $ 3,823 $ 10,806 (a) Comprised primarily of hedge funds and private equity funds. (b) At December 31, 2021 and 2020, $ 7.8 billion and $ 6.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (c) At December 31, 2020, primarily included alternative equity investments of $ 257 million and other loans receivables of $ 97 million. (d) These amounts represent our unfunded commitments to invest in private equity funds and hedge funds. (e) These amounts represent our estimate of the maximum exposure to loss under certain insurance policies issued to VIEs if a hypothetical loss occurred to the extent of the full amount of the insured value. Our insurance policies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet. Real Estate and Investment Entities |
DERIVATIVES AND HEDGE ACCOUNT_2
DERIVATIVES AND HEDGE ACCOUNTING (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
Notional amounts and fair values of derivative instruments | December 31, 2021 December 31, 2020 Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities Notional Fair Notional Fair Notional Fair Notional Fair (in millions) Amount Value Amount Value Amount Value Amount Value Derivatives designated as hedging instruments: (a) Interest rate contracts $ 265 $ 5 $ 895 $ 11 $ 815 $ 16 $ 356 $ 11 Foreign exchange contracts 5,431 467 5,828 197 3,468 256 7,424 379 Derivatives not designated as hedging instruments: (a) Interest rate contracts 47,499 3,868 42,113 3,622 62,259 4,621 48,732 4,425 Foreign exchange contracts 7,905 722 9,997 524 9,518 766 12,860 711 Equity contracts 27,423 681 5,091 53 22,924 1,130 7,076 223 Commodity contracts 303 4 219 - - - - - Credit contracts (b) 3,790 1 936 47 5,797 2 969 67 Other contracts (c) 43,892 13 51 - 43,441 14 54 6 Total derivatives, gross $ 136,508 $ 5,761 $ 65,130 $ 4,454 $ 148,222 $ 6,805 $ 77,471 $ 5,822 Counterparty netting (d) ( 2,779) ( 2,779) ( 3,812) ( 3,812) Cash collateral (e) ( 2,139) ( 1,089) ( 2,219) ( 1,441) Total derivatives on Consolidated Balance Sheets (f) $ 843 $ 586 $ 774 $ 569 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b) As of December 31, 2021 and 2020, included CDSs on super senior multi-sector CDOs with a net notional amount of $ 97 million and $ 137 million (fair value liability of $ 30 million and $ 44 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 zero at both December 31, 2021 and December 31, 2020. Fair value of liabilities related to bifurcated embedded derivatives was $ 14.5 billion and $ 15.8 billion, respectively, at December 31, 2021 and December 31, 2020. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. Embedded derivatives are primarily related to guarantee features in variable annuity products, which include equity and interest rate components, and the funds withheld arrangement with Fortitude Re. For additional information see Note 7 |
Gain (loss) recognized in earnings on AIG's derivative instruments in fair value hedging relationships in the Consolidated Statements of Income | Gains/(Losses) Recognized in Income for: Hedging Excluded Hedged (in millions) Derivatives (a) Components (b) Items Net Impact Year ended December 31, 2021 Interest rate contracts : Interest credited to policyholder account balances $ ( 19) $ - $ 17 $ ( 2) Net investment income 9 - ( 11) ( 2) Foreign exchange contracts : Net realized gains/(losses) 210 139 ( 210) 139 Year ended December 31, 2020 Interest rate contracts : Interest credited to policyholder account balances $ 14 $ - $ ( 14) $ - Net investment income ( 6) - 5 ( 1) Foreign exchange contracts : Net realized gains/(losses) ( 422) 49 422 49 Year ended December 31, 2019 Interest rate contracts : Interest credited to policyholder account balances $ 16 $ - $ ( 16) $ - Net investment income ( 1) - 1 - Foreign exchange contracts : Net realized gains/(losses) ( 31) 91 31 91 (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. |
Effect of AIG's derivative instruments not designated as hedging instruments in the Consolidated Statements of Income | Years Ended December 31, Gains (Losses) Recognized in Income (in millions) 2021 2020 2019 By Derivative Type: Interest rate contracts $ ( 573) $ 1,451 $ 1,319 Foreign exchange contracts 278 ( 389) ( 25) Equity contracts ( 736) 211 ( 316) Commodity contracts ( 9) - - Credit contracts ( 12) 52 61 Other contracts 64 61 64 Embedded derivatives 623 ( 4,722) ( 1,464) Total $ ( 365) $ ( 3,336) $ ( 361) By Classification: Policy fees $ 61 $ 62 $ 68 Net investment income 5 ( 8) ( 125) Net realized gains (losses) - excluding Fortitude Re funds withheld assets 148 ( 508) ( 316) Net realized losses on Fortitude Re funds withheld assets (a) ( 575) ( 2,894) - Policyholder benefits and claims incurred ( 4) 12 12 Total $ ( 365) $ ( 3,336) $ ( 361) 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. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of changes in goodwill by reportable segment | General Insurance North Life Other (in millions) America International Insurance Operations Total Balance at January 1, 2019: Goodwill - gross $ 3,793 $ 3,378 $ 311 $ 77 $ 7,559 Accumulated impairments ( 1,145) ( 2,255) ( 67) ( 10) ( 3,477) Net goodwill 2,648 1,123 244 67 4,082 Increase (decrease) due to: Acquisitions - 20 - - 20 Other (a) - 26 ( 77) ( 13) ( 64) Balance at December 31, 2019: Goodwill - gross 3,793 3,424 234 64 7,515 Accumulated impairments ( 1,145) ( 2,255) ( 67) ( 10) ( 3,477) Net goodwill 2,648 1,169 167 54 4,038 Increase (decrease) due to: Dispositions ( 2) - - ( 4) ( 6) Other - 32 10 - 42 Balance at December 31, 2020: Goodwill - gross 3,791 3,456 244 60 7,551 Accumulated impairments ( 1,145) ( 2,255) ( 67) ( 10) ( 3,477) Net goodwill 2,646 1,201 177 50 4,074 Increase (decrease) due to: Other - ( 13) ( 5) - ( 18) Balance at December 31, 2021: Goodwill - gross 3,791 3,443 239 60 7,533 Accumulated impairments ( 1,145) ( 2,255) ( 67) ( 10) ( 3,477) Net goodwill $ 2,646 $ 1,188 $ 172 $ 50 $ 4,056 (a) Reflects $ 98 million of goodwill reclassified to assets held for sale. |
Changes in other intangible assets | General Insurance North Life Other (in millions) America International Insurance Operations Total Other intangible assets Balance at January 1, 2019 $ 86 $ 212 $ 46 $ 16 $ 360 Increase (decrease) due to: Amortization ( 1) ( 1) ( 4) ( 2) ( 8) Other ( 3) - ( 18) 2 ( 19) Balance at December 31, 2019 $ 82 $ 211 $ 24 $ 16 $ 333 Increase (decrease) due to: Dispositions - - - ( 4) ( 4) Amortization ( 2) ( 1) ( 4) ( 2) ( 9) Other ( 1) - 2 ( 2) ( 1) Balance at December 31, 2020 $ 79 $ 210 $ 22 $ 8 $ 319 Increase (decrease) due to: Amortization ( 2) - ( 4) ( 2) ( 8) Other ( 10) ( 1) ( 1) 1 ( 11) Balance at December 31, 2021 $ 67 $ 209 $ 17 $ 7 $ 300 Value of distribution network acquired Balance at January 1, 2019 $ - $ - $ - $ 569 $ 569 Increase (decrease) due to: Amortization - - - ( 39) ( 39) Other - - - 6 6 Balance at December 31, 2019 $ - $ - $ - $ 536 $ 536 Increase (decrease) due to: Amortization - - - ( 40) ( 40) Other - - - 1 1 Balance at December 31, 2020 $ - $ - $ - $ 497 $ 497 Increase (decrease) due to: Amortization - - - ( 40) ( 40) Other - - - 1 1 Balance at December 31, 2021 $ - $ - $ - $ 458 $ 458 |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Claims Development [Line Items] | |
Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense | Years Ended December 31, (in millions) 2021 2020 2019 Liability for unpaid loss and loss adjustment expenses, beginning of year $ 77,720 $ 78,328 $ 83,639 Reinsurance recoverable ( 34,431) ( 31,069) ( 31,690) Initial allowance upon CECL adoption - 164 - Net Liability for unpaid loss and loss adjustment expenses, beginning of year 43,289 47,423 51,949 Losses and loss adjustment expenses incurred: Current year 16,434 16,928 17,596 Prior years, excluding discount and amortization of deferred gain ( 171) ( 90) ( 340) Prior years, discount charge (benefit) ( 131) 587 1,063 Prior years, amortization of deferred gain on retroactive reinsurance (a) ( 190) ( 237) ( 219) Total losses and loss adjustment expenses incurred 15,942 17,188 18,100 Losses and loss adjustment expenses paid: Current year ( 3,868) ( 4,062) ( 4,894) Prior years ( 11,503) ( 14,603) ( 18,020) Total losses and loss adjustment expenses paid ( 15,371) ( 18,665) ( 22,914) Other changes: Foreign exchange effect ( 593) 815 ( 6) Allowance for credit losses - ( 15) - Retroactive reinsurance adjustment (net of discount) (b) 546 361 130 Fortitude sale (c) - ( 3,818) - Total other changes ( 47) ( 2,657) 124 Liability for unpaid loss and loss adjustment expenses, end of year: Net liability for unpaid losses and loss adjustment expenses 43,813 43,289 47,259 Reinsurance recoverable 35,213 34,431 31,069 Total $ 79,026 $ 77,720 $ 78,328 (a) Includes $ 53 million, $ 41 million and $ 27 million for the retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the year ended December 31, 2021, 2020 and 2019, respectively. (b) Includes benefit (charge) from change in discount on retroactive reinsurance in the amount of $( 42) million, $ 340 million and $ 469 million for the periods ended December 31, 2021, 2020 and 2019, respectively. (c) On June 2, 2020, AIG completed the Majority Interest Fortitude Sale. Concurrent with the Majority Interest Fortitude Sale, AIG established a reinsurance recoverable. For additional information see Note 1. |
Reconciliation of claims development to liability | Net liability for unpaid losses Reinsurance recoverable on Gross liability and loss adjustment expenses unpaid losses and loss for unpaid as presented in the adjustment expenses included in losses and loss (in millions) disaggregated tables below the disaggregated tables below adjustment expenses U.S. Workers' Compensation (before discount) $ 4,158 $ 6,169 $ 10,327 U.S. Excess Casualty 3,850 4,195 8,045 U.S. Other Casualty 3,805 4,191 7,996 U.S. Financial Lines 5,356 1,893 7,249 U.S. Property and Special Risks 6,615 3,587 10,202 U.S. Personal Insurance 1,001 2,198 3,199 UK/Europe Casualty and Financial lines 7,175 1,603 8,778 UK/Europe Property and Special Risks 2,631 1,492 4,123 UK/Europe and Japan Personal Insurance 1,962 608 2,570 Total $ 36,553 $ 25,936 $ 62,489 Reconciling Items Discount on workers' compensation lines ( 1,829) Other product lines * 15,561 Unallocated loss adjustment expenses 2,805 Total Loss Reserves $ 79,026 * Reinsurance recoverable for other product lines of $ 9.1 billion resulted in a net liability for unpaid losses and loss adjustment expenses of $ 6.5 billion for the year ended December 31, 2021. |
Reconciliation of change in net ultimate loss and loss adjustment expense to prior year development | Prior Year Development In the sections below, we provide details by coverage group regarding incurred losses, reserve balances and prior year development. The first table below shows prior year development by coverage group, the first two columns of which will again be presented in the coverage group sections that follow. After this table we describe historical drivers of prior year development as well as actuarial methods and relevant terminology. The following coverage group sections present the undiscounted incurred losses and allocated loss adjustment expenses by accident year on a net basis after reinsurance, with separate presentation of the adverse development cover where applicable, excluding related amortization of the deferred gain. Each section also contains details on drivers of prior year development and a description of our reserving process and methodology. Finally, we show a table of claims payout patterns by coverage. The following table presents the reconciliation of net prior year development before the adverse development reinsurance agreement (ADC) cessions from the tables below to the net prior year development after ADC cessions and amortization of deferred gain for the year ended December 31, 2021: Prior Year Prior Year Prior Year Development Development Development Net of External Net of External Amortization After Reinsurance Reinsurance Re-Attribution of Deferred Amortization Before ADC After ADC of ADC Gain at and (in millions) Cessions Cessions (a) Recovery (b) Inception Re-Attribution U.S. Workers' Compensation $ ( 617) $ ( 403) $ 80 $ ( 60) $ ( 383) U.S. Excess Casualty 51 81 ( 40) ( 46) ( 5) U.S. Other Casualty ( 1) 74 ( 23) ( 44) 7 U.S. Financial Lines 649 564 ( 12) ( 31) 521 U.S. Property and Special Risks 172 204 ( 5) ( 10) 189 U.S. Personal Insurance ( 412) ( 411) - ( 2) ( 413) UK/Europe Casualty and Financial lines 210 210 - - 210 UK/Europe Property and Special Risks ( 118) ( 118) - - ( 118) UK/Europe and Japan Personal Insurance ( 173) ( 173) - - ( 173) Other Operations Run-Off 86 86 - - 86 Other product lines ( 18) ( 36) - - ( 36) Subtotal, adjusted pre-tax basis $ ( 171) $ 78 $ - $ ( 193) $ ( 115) Remove impact of Retroactive Reinsurance Amortization of deferred gain at inception 193 Prior year development ceded under the Asbestos LPT - Prior year development ceded under the ADC ( 249) Total, prior years, excluding discount and amortization of deferred gain $ ( 171) (a) Change in net ultimate loss and loss adjustment expenses excludes the portion of prior year development we have ceded under the Asbestos Loss Portfolio Transfer (LPT) and the ADC, both of which are provided by NICO and are considered retroactive reinsurance under U.S. GAAP. (b) Reattribution of the ADC recovery takes place annually as we model the future payments on the subject reserves covered by the ADC to determine when the aggregate payments will exceed the attachment. ADC recoverables are then reallocated by line based on payments expected to be made after attachment point is exceeded. |
Schedule of development, (favorable) unfavorable, of incurred losses and loss adjustment expenses for accident year 2009 and prior by operating segment and major class of business | Years Ended December 31, (in millions) 2021 2020 2019 U.S. Workers' compensation (before discount) $ ( 365) $ ( 87) $ ( 210) U.S. Excess casualty ( 84) ( 237) 54 U.S. Other casualty ( 17) ( 40) ( 170) U.S. Financial Lines ( 20) 25 11 U.S. Property and Special Risks ( 10) ( 6) ( 3) U.S. Personal Insurance 3 3 1 UK/Europe Casualty and Financial Lines ( 50) 6 9 UK/Europe Property and Special Risks ( 13) - ( 28) UK/Europe and Japan Personal Insurance ( 10) 3 - Other Operations Run-Off ( 10) 4 ( 46) All Other including unallocated loss adjustment expenses 7 ( 128) 116 Total prior year favorable development $ ( 569) $ ( 457) $ ( 266) |
Schedule of historical average annual percentage claims payout on an accident year basis | Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited) Year 1 2 3 4 5 6 7 8 9 10 U.S. Workers' compensation 13.1 % 17.7 % 11.8 % 7.6 % 5.8 % 3.9 % 2.6 % 2.0 % 2.5 % 2.0 % U.S. Excess casualty 0.8 7.2 10.3 17.1 10.9 9.6 7.7 4.6 ( 0.2) 1.4 U.S. Other casualty 7.4 13.0 14.8 15.1 13.7 8.2 5.6 2.9 1.4 1.3 U.S. Financial Lines 3.9 17.7 20.3 16.5 12.5 7.8 5.6 5.4 3.6 1.0 U.S. Property and Special Risks 30.7 34.0 12.5 7.9 5.3 3.2 1.1 0.9 0.4 0.2 U.S. Personal Insurance 60.5 27.5 5.2 ( 0.6) 1.6 0.7 0.4 0.3 0.1 0.1 UK/Europe Casualty and Financial Lines 6.6 16.0 13.0 11.7 10.0 9.1 7.0 4.8 2.6 1.8 UK/Europe Property and Special Risks 22.9 39.1 16.9 7.2 3.3 1.9 0.8 0.7 0.1 0.4 UK/Europe and Japan Personal Insurance 56.7 26.7 7.7 3.8 1.9 1.1 0.6 0.3 0.2 0.1 |
Schedule of components of the loss reserve discount | December 31, 2021 December 31, 2020 North America Other North America Other Commercial Operations Commercial Operations (in millions) Insurance Run-Off (b) Total Insurance Run-Off (b) Total U.S. workers' compensation $ 1,829 $ - $ 1,829 $ 1,636 $ - $ 1,636 Retroactive reinsurance ( 953) - ( 953) ( 911) - ( 911) Total reserve discount (a) $ 876 $ - $ 876 $ 725 $ - $ 725 (a) Excludes $ 116 million and $ 151 million of discount related to certain long tail liabilities in the UK at December 31, 2021 and 2020, respectively. (b) Excludes $ 500 million and $ 493 million, respectively, of discount which was 100 percent ceded to Fortitude Re at December 31, 2021 and 2020. On June 2, 2020, we completed the Majority Interest Fortitude Sale. For additional information see Note 1. The following table presents the net loss reserve discount benefit (charge): |
Schedule of loss reserve discount and loss reserve discount benefit (charge) | Years Ended December 31, 2021 2020 2019 North North North America Other America Other America Other Commercial Operations Commercial Operations Commercial Operations (in millions) Insurance Run-Off (b) Total Insurance Run-Off Total Insurance Run-Off Total Current accident year $ 62 $ - $ 62 $ 71 $ - $ 71 $ 108 $ - $ 108 Accretion and other adjustments to prior year discount ( 88) - ( 88) ( 162) ( 18) ( 180) ( 229) ( 87) ( 316) Effect of interest rate changes 219 - 219 ( 407) - ( 407) ( 527) ( 220) ( 747) Net reserve discount benefit (charge) 193 - 193 ( 498) ( 18) ( 516) ( 648) ( 307) ( 955) Change in discount on loss reserves ceded under retroactive reinsurance ( 42) - ( 42) 340 - 340 469 - 469 Net change in total reserve discount (a) $ 151 $ - $ 151 $ ( 158) $ ( 18) $ ( 176) $ ( 179) $ ( 307) $ ( 486) (a) Excludes $( 35) million, $( 20) million, and $ 9 million of discount related to certain long tail liabilities in the UK at December 31, 2021, 2020, and 2019, respectively. (b) On June 2, 2020, we completed the Majority Interest Fortitude Sale. For additional information see Note 1. Change in discount prior to the sale is included in the above at December 31, 2020. Following the sale, 100 percent of the discount is ceded to Fortitude Re. |
Schedule of policyholder contract deposits by product type | At December 31, (in millions) 2021 2020* Policyholder contract deposits: Individual Retirement $ 87,664 $ 84,874 Group Retirement 44,087 43,804 Life Insurance 10,298 10,286 Institutional Markets 10,810 11,361 Fortitude Re 3,827 4,145 Total Policyholder contract deposits $ 156,686 $ 154,470 |
Schedule of universal life policies with secondary guarantees | Years Ended December 31, (in millions) 2021 2020 (b) 2019 (b) Balance, beginning of year $ 4,751 $ 3,787 $ 2,893 Incurred guaranteed benefits (a) 603 1,041 514 Paid guaranteed benefits ( 489) ( 470) ( 469) Changes related to unrealized appreciation (depreciation) of investments ( 360) 393 849 Balance, end of year $ 4,505 $ 4,751 $ 3,787 (a) Incurred guaranteed benefits include the portion of assessments established as additions to reserves as well as changes in estimates (assumption unlockings) affecting these reserves. (b) Prior periods have been updated to include impacts of the changes related to unrealized appreciation (depreciation) of investments. |
Schedule of details concerning universal life policies with secondary guarantees | At December 31, (dollars in millions) 2021 2020 Account value $ 3,313 $ 3,078 Net amount at risk 65,801 63,721 Average attained age of contract holders 53 53 |
U.S. Workers Compensation | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2021 Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2021 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 2,382 $ 2,194 $ 2,286 $ 2,260 $ 2,334 $ 2,308 $ 2,259 $ 2,247 $ 2,224 $ 2,218 $ ( 6) $ 207 72,021 $ ( 380) $ ( 192) $ 1,838 $ 15 2013 1,932 1,880 1,950 2,060 2,032 1,974 1,916 1,886 1,877 ( 9) 190 48,167 ( 373) ( 177) 1,504 13 2014 1,729 1,764 1,866 1,862 1,794 1,709 1,679 1,637 ( 42) 292 40,776 ( 466) ( 269) 1,171 23 2015 1,708 1,864 1,866 1,814 1,722 1,675 1,634 ( 41) 421 36,513 ( 593) ( 394) 1,041 27 2016 1,299 1,346 1,318 1,140 1,090 1,075 ( 15) 293 31,374 - - 1,075 293 2017 789 850 776 763 731 ( 32) 255 27,125 - - 731 255 2018 998 1,021 961 911 ( 50) 429 21,739 - - 911 429 2019 887 873 812 ( 61) 359 16,471 - - 812 359 2020 597 573 ( 24) 276 13,245 - - 573 276 2021 597 446 9,067 - - 597 446 Total $ 12,065 $ ( 280) $ ( 1,812) $ 10,253 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 7,286) - 126 ( 7,160) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2012, net of reinsurance 4,635 ( 365) ( 3,570) 1,065 Unallocated loss adjustment expense prior year development 28 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 9,414 $ ( 617) $ ( 5,256) $ 4,158 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ 1,819 $ 1,814 $ 1,793 $ 1,804 $ 1,826 $ 1,838 $ 12 2013 1,500 1,494 1,481 1,458 1,520 1,504 ( 16) 2014 1,311 1,310 1,309 1,329 1,223 1,171 ( 52) 2015 1,279 1,279 1,318 1,134 1,105 1,041 ( 64) 2016 1,299 1,346 1,318 1,140 1,090 1,075 ( 15) 2017 789 850 776 763 731 ( 32) 2018 998 1,021 961 911 ( 50) 2019 887 873 812 ( 61) 2020 597 573 ( 24) 2021 597 Total $ 7,208 $ 8,032 $ 9,067 $ 9,549 $ 9,958 $ 10,253 $ ( 302) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 7,160) Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance 1,065 ( 31) Unallocated loss adjustment expense prior year development ( 70) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 4,158 $ ( 403) The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ ( 515) $ ( 494) $ ( 466) $ ( 443) $ ( 398) $ ( 380) $ 18 2013 ( 560) ( 538) ( 493) ( 458) ( 366) ( 373) ( 7) 2014 ( 555) ( 552) ( 485) ( 380) ( 456) ( 466) ( 10) 2015 ( 585) ( 587) ( 496) ( 588) ( 570) ( 593) ( 23) 2016 - - - - - - - 2017 - - - - - - - 2018 - - - - - - - 2019 - - - - - - - 2020 - - - - - - - 2021 - - - - - - - Total $ ( 2,216) $ ( 2,171) $ ( 1,940) $ ( 1,869) $ ( 1,790) $ ( 1,812) $ ( 22) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below 126 Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance ( 3,570) 334 Unallocated loss adjustment expense prior year development ( 98) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ ( 5,256) $ 214 |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 415 $ 804 $ 1,089 $ 1,272 $ 1,440 $ 1,563 $ 1,632 $ 1,669 $ 1,719 $ 1,763 $ ( 33) 2013 282 619 879 1,067 1,214 1,287 1,335 1,372 1,422 ( 38) 2014 231 558 786 930 1,030 1,096 1,137 1,180 ( 31) 2015 234 524 725 854 925 979 1,013 ( 24) 2016 147 378 521 584 630 662 - 2017 93 224 294 333 367 - 2018 85 215 296 359 - 2019 93 219 301 - 2020 64 159 - 2021 60 - Total $ 7,286 $ ( 126) |
U.S. Excess Casualty | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2021 Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2021 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 1,607 $ 1,403 $ 1,242 $ 1,488 $ 1,537 $ 1,486 $ 1,558 $ 1,502 $ 1,390 $ 1,428 $ 38 $ 201 3,844 $ ( 296) $ ( 154) $ 1,132 $ 47 2013 1,123 1,035 1,169 1,308 1,241 1,282 1,292 1,316 1,303 ( 13) 224 3,315 ( 333) ( 182) 970 42 2014 938 1,069 1,275 1,260 1,339 1,283 1,248 1,269 21 288 2,839 ( 320) ( 155) 949 133 2015 989 1,463 1,440 1,603 1,656 1,694 1,721 27 362 2,922 ( 490) ( 248) 1,231 114 2016 898 1,146 1,162 1,171 1,274 1,250 ( 24) 436 2,454 - - 1,250 436 2017 856 1,002 1,097 1,153 1,157 4 371 1,812 - - 1,157 371 2018 648 646 721 769 48 288 1,177 - - 769 288 2019 577 583 597 14 392 998 - - 597 392 2020 406 413 7 371 790 - - 413 371 2021 278 245 340 - - 278 245 Total $ 10,185 $ 122 $ ( 1,439) $ 8,746 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 5,541) - 129 ( 5,412) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2012, net of reinsurance 2,196 ( 84) ( 1,680) 516 Unallocated loss adjustment expense prior year development 13 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 6,840 $ 51 $ ( 2,990) $ 3,850 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ 1,175 $ 1,163 $ 1,254 $ 1,214 $ 1,137 $ 1,132 $ ( 5) 2013 935 932 981 1,032 970 970 - 2014 902 905 915 844 912 949 37 2015 1,027 1,015 1,139 1,163 1,211 1,231 20 2016 898 1,146 1,162 1,171 1,274 1,250 ( 24) 2017 856 1,002 1,097 1,153 1,157 4 2018 648 646 721 769 48 2019 577 583 597 14 2020 406 413 7 2021 278 Total $ 4,937 $ 6,017 $ 7,101 $ 7,744 $ 8,367 $ 8,746 $ 101 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 5,412) Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance 516 ( 112) Unallocated loss adjustment expense prior year development 92 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 3,850 $ 81 The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ ( 362) $ ( 323) $ ( 304) $ ( 288) $ ( 253) $ ( 296) $ ( 43) 2013 ( 373) ( 309) ( 301) ( 260) ( 346) ( 333) 13 2014 ( 373) ( 355) ( 424) ( 439) ( 336) ( 320) 16 2015 ( 436) ( 425) ( 464) ( 493) ( 483) ( 490) ( 7) 2016 - - - - - - - 2017 - - - - - - - 2018 - - - - - - - 2019 - - - - - - - 2020 - - - - - - - 2021 - - - - - - - Total $ ( 1,544) $ ( 1,412) $ ( 1,493) $ ( 1,480) $ ( 1,418) $ ( 1,439) $ ( 21) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below 129 Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance ( 1,680) ( 28) Unallocated loss adjustment expense prior year development 79 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ ( 2,990) $ 30 |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 3 $ 106 $ 288 $ 495 $ 649 $ 887 $ 1,022 $ 1,121 $ 1,090 $ 1,111 $ ( 24) 2013 15 105 207 387 578 705 819 882 903 ( 21) 2014 3 77 240 444 590 703 815 839 ( 28) 2015 9 210 391 718 935 1,061 1,124 ( 56) 2016 28 80 204 388 502 566 - 2017 1 45 156 505 585 - 2018 1 125 227 315 - 2019 7 43 79 - 2020 4 15 - 2021 4 - Total $ 5,541 $ ( 129) |
U.S. Other Casualty | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2021 Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2021 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 1,986 $ 2,139 $ 2,193 $ 2,203 $ 2,352 $ 2,407 $ 2,343 $ 2,328 $ 2,321 $ 2,338 $ 17 $ 138 44,226 $ ( 204) $ ( 110) $ 2,134 $ 28 2013 1,653 1,729 1,912 2,148 2,185 2,164 2,211 2,196 2,178 ( 18) 194 40,126 ( 252) ( 165) 1,926 29 2014 1,751 1,721 1,963 2,009 1,910 1,916 1,946 1,935 ( 11) 120 38,149 ( 213) ( 89) 1,722 31 2015 1,329 1,762 1,829 1,736 1,794 1,834 1,824 ( 10) 85 35,309 ( 262) ( 61) 1,562 24 2016 1,339 1,343 1,321 1,391 1,340 1,323 ( 17) 238 28,646 - - 1,323 238 2017 602 629 738 674 668 ( 6) 115 20,792 - - 668 115 2018 802 845 837 870 33 355 16,314 - - 870 355 2019 1,059 1,058 1,053 ( 5) 683 19,976 - - 1,053 683 2020 524 576 52 427 9,958 - - 576 427 2021 795 711 7,561 - - 795 711 Total $ 13,560 $ 35 $ ( 931) $ 12,629 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 9,436) - 177 ( 9,259) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2012, net of reinsurance 1,435 ( 17) ( 1,000) 435 Unallocated loss adjustment expense prior year development ( 19) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 5,559 $ ( 1) $ ( 1,754) $ 3,805 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ 2,189 $ 2,197 $ 2,175 $ 2,159 $ 2,135 $ 2,134 $ ( 1) 2013 1,948 1,960 1,929 1,948 1,920 1,926 6 2014 1,667 1,678 1,634 1,694 1,701 1,722 21 2015 1,361 1,373 1,423 1,493 1,553 1,562 9 2016 1,339 1,343 1,321 1,391 1,340 1,323 ( 17) 2017 602 629 738 674 668 ( 6) 2018 802 845 837 870 33 2019 1,059 1,058 1,053 ( 5) 2020 524 576 52 2021 795 Total $ 8,504 $ 9,153 $ 9,913 $ 11,327 $ 11,742 $ 12,629 $ 92 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 9,259) Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance 435 ( 46) Unallocated loss adjustment expense prior year development 28 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 3,805 $ 74 The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ ( 163) $ ( 210) $ ( 168) $ ( 169) $ ( 186) $ ( 204) $ ( 18) 2013 ( 200) ( 225) ( 235) ( 263) ( 276) ( 252) 24 2014 ( 296) ( 331) ( 276) ( 222) ( 245) ( 213) 32 2015 ( 401) ( 456) ( 313) ( 301) ( 281) ( 262) 19 2016 - - - - - - - 2017 - - - - - - - 2018 - - - - - - - 2019 - - - - - - - 2020 - - - - - - - 2021 - - - - - - - Total $ ( 1,060) $ ( 1,222) $ ( 992) $ ( 955) $ ( 988) $ ( 931) $ 57 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below 177 Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance ( 1,000) ( 29) Unallocated loss adjustment expense prior year development 47 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ ( 1,754) $ 75 |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 411 $ 739 $ 1,042 $ 1,385 $ 1,677 $ 1,869 $ 2,009 $ 2,053 $ 2,101 $ 2,130 $ ( 23) 2013 169 594 962 1,248 1,485 1,688 1,809 1,885 1,900 ( 16) 2014 210 620 868 1,150 1,392 1,572 1,653 1,719 ( 51) 2015 105 309 769 1,087 1,351 1,485 1,603 ( 87) 2016 77 298 489 703 846 938 - 2017 51 111 216 314 455 - 2018 43 122 227 360 - 2019 53 138 226 - 2020 26 73 - 2021 32 - Total $ 9,436 $ ( 177) |
U.S. Financial Lines | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2021 Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2021 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 1,592 $ 1,763 $ 1,800 $ 1,907 $ 1,988 $ 1,990 $ 2,015 $ 2,077 $ 2,082 $ 2,067 $ ( 15) $ 63 20,094 $ ( 117) $ ( 52) $ 1,950 $ 11 2013 1,790 1,719 1,670 1,613 1,555 1,497 1,509 1,550 1,542 ( 8) 35 19,150 ( 127) ( 32) 1,415 3 2014 1,812 1,777 1,892 1,927 1,960 1,981 2,000 2,057 57 174 17,630 ( 296) ( 137) 1,761 37 2015 1,737 1,762 1,743 1,788 1,830 1,874 1,959 85 112 16,223 ( 364) ( 101) 1,595 11 2016 1,605 1,855 1,993 2,064 2,139 2,281 142 305 16,111 - - 2,281 305 2017 1,564 1,675 1,756 1,846 1,898 52 263 15,149 - - 1,898 263 2018 1,640 1,766 1,882 2,063 181 593 14,721 - - 2,063 593 2019 1,503 1,536 1,627 91 637 13,122 - - 1,627 637 2020 1,213 1,252 39 685 10,055 - - 1,252 685 2021 1,430 1,318 6,386 - - 1,430 1,318 Total $ 18,176 $ 624 $ ( 904) $ 17,272 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 12,198) - 326 ( 11,872) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2012, net of reinsurance 138 ( 20) ( 182) ( 44) Unallocated loss adjustment expense prior year development 45 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 6,116 $ 649 $ ( 760) $ 5,356 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ 1,906 $ 1,907 $ 1,925 $ 1,962 $ 1,948 $ 1,950 $ 2 2013 1,442 1,429 1,408 1,409 1,402 1,415 13 2014 1,733 1,729 1,753 1,741 1,759 1,761 2 2015 1,429 1,430 1,462 1,552 1,550 1,595 45 2016 1,605 1,855 1,993 2,064 2,139 2,281 142 2017 1,564 1,675 1,756 1,846 1,898 52 2018 1,640 1,766 1,882 2,063 181 2019 1,503 1,536 1,627 91 2020 1,213 1,252 39 2021 1,430 Total $ 8,115 $ 9,914 $ 11,856 $ 13,753 $ 15,275 $ 17,272 $ 567 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 11,872) Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance ( 44) ( 63) Unallocated loss adjustment expense prior year development 60 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 5,356 $ 564 The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ ( 82) $ ( 83) $ ( 90) $ ( 115) $ ( 134) $ ( 117) $ 17 2013 ( 171) ( 126) ( 89) ( 100) ( 148) ( 127) 21 2014 ( 159) ( 198) ( 207) ( 240) ( 241) ( 296) ( 55) 2015 ( 333) ( 313) ( 326) ( 278) ( 324) ( 364) ( 40) 2016 - - - - - - - 2017 - - - - - - - 2018 - - - - - - - 2019 - - - - - - - 2020 - - - - - - - 2021 - - - - - - - Total $ ( 745) $ ( 720) $ ( 712) $ ( 733) $ ( 847) $ ( 904) $ ( 57) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below 326 Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance ( 182) ( 43) Unallocated loss adjustment expense prior year development 15 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ ( 760) $ ( 85) |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 73 $ 403 $ 812 $ 1,250 $ 1,494 $ 1,622 $ 1,687 $ 1,859 $ 1,904 $ 1,925 $ ( 19) 2013 41 327 682 945 1,139 1,235 1,314 1,362 1,440 ( 63) 2014 66 366 849 1,158 1,387 1,573 1,658 1,758 ( 79) 2015 63 390 791 1,055 1,282 1,488 1,686 ( 165) 2016 73 499 1,002 1,358 1,659 1,826 - 2017 64 391 761 1,118 1,396 - 2018 86 486 835 1,126 - 2019 94 367 642 - 2020 84 356 - 2021 43 - Total $ 12,198 $ ( 326) |
U.S. Property and Specialty Risks | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2021 Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2021 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 4,166 $ 4,276 $ 4,257 $ 4,215 $ 4,327 $ 4,319 $ 4,301 $ 4,285 $ 4,282 $ 4,272 $ ( 10) $ 39 48,478 $ ( 16) $ ( 6) $ 4,256 $ 33 2013 2,528 2,531 2,389 2,434 2,447 2,449 2,440 2,433 2,422 ( 11) 27 49,990 ( 32) ( 16) 2,390 11 2014 2,943 2,712 2,783 2,770 2,788 2,768 2,750 2,730 ( 20) 65 60,699 ( 70) ( 33) 2,660 32 2015 3,100 2,982 2,911 2,901 2,865 2,860 2,868 8 77 59,363 ( 107) ( 47) 2,761 30 2016 3,146 3,184 3,099 3,086 3,077 3,061 ( 16) 38 54,635 - - 3,061 38 2017 5,368 4,902 4,742 4,740 4,749 9 111 79,437 - - 4,749 111 2018 3,702 3,757 3,712 3,930 218 346 69,199 - - 3,930 346 2019 2,809 2,850 2,882 32 300 78,109 - - 2,882 300 2020 4,481 4,466 ( 15) 1,293 66,812 - - 4,466 1,293 2021 3,554 1,316 55,054 - - 3,554 1,316 Total $ 34,934 $ 195 $ ( 225) 34,709 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 28,355) - 47 ( 28,308) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2012, net of reinsurance 340 ( 10) ( 126) 214 Unallocated loss adjustment expense prior year development ( 13) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 6,919 $ 172 $ ( 304) 6,615 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ 4,300 $ 4,294 $ 4,282 $ 4,259 $ 4,259 $ 4,256 $ ( 3) 2013 2,407 2,409 2,422 2,402 2,397 2,390 ( 7) 2014 2,716 2,709 2,724 2,692 2,672 2,660 ( 12) 2015 2,841 2,813 2,814 2,771 2,761 2,761 - 2016 3,146 3,184 3,099 3,086 3,077 3,061 ( 16) 2017 5,368 4,902 4,742 4,740 4,749 9 2018 3,702 3,757 3,712 3,930 218 2019 2,809 2,850 2,882 32 2020 4,481 4,466 ( 15) 2021 3,554 Total $ 15,410 $ 20,777 $ 23,945 $ 26,518 $ 30,949 $ 34,709 $ 206 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 28,308) Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance 214 4 Unallocated loss adjustment expense prior year development ( 6) Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 6,615 $ 204 The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ ( 27) $ ( 25) $ ( 19) $ ( 26) $ ( 23) $ ( 16) $ 7 2013 ( 27) ( 38) ( 27) ( 38) ( 36) ( 32) 4 2014 ( 67) ( 61) ( 64) ( 76) ( 78) ( 70) 8 2015 ( 141) ( 98) ( 87) ( 94) ( 99) ( 107) ( 8) 2016 - - - - - - - 2017 - - - - - - - 2018 - - - - - - - 2019 - - - - - - - 2020 - - - - - - - 2021 - - - - - - - Total $ ( 262) $ ( 222) $ ( 197) $ ( 234) $ ( 236) $ ( 225) $ 11 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below 47 Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance ( 126) 14 Unallocated loss adjustment expense prior year development 7 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ ( 304) $ 32 |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 840 $ 2,709 $ 3,404 $ 3,768 $ 3,985 $ 4,114 $ 4,146 $ 4,180 $ 4,195 $ 4,204 $ ( 5) 2013 734 1,571 1,849 2,042 2,189 2,301 2,326 2,345 2,355 ( 5) 2014 913 1,761 2,113 2,326 2,465 2,558 2,597 2,628 ( 13) 2015 1,037 1,871 2,237 2,492 2,618 2,688 2,726 ( 24) 2016 999 2,027 2,362 2,613 2,798 2,882 - 2017 1,359 3,068 3,790 4,142 4,397 - 2018 1,059 2,649 3,044 3,292 - 2019 1,137 2,032 2,341 - 2020 1,180 2,356 - 2021 1,174 - Total $ 28,355 $ ( 47) |
U.S. Personal Insurance | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance Years Ended December 31, (in millions) December 31, 2021 Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Incurred Impact of Adverse Development Reinsurance Agreement IBNR Impact of Adverse Development Reinsurance Agreement 2021 (Net of Impact of Adverse Development Reinsurance Agreement) Total of IBNR Liabilities Net of Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 2,208 $ 2,128 $ 2,109 $ 2,083 $ 2,077 $ 2,094 $ 2,095 $ 2,099 $ 2,101 $ 2,100 $ ( 1) $ - 404,039 $ ( 1) $ - $ 2,099 $ - 2013 1,887 1,816 1,803 1,782 1,780 1,776 1,777 1,778 1,777 ( 1) 1 335,374 ( 1) ( 1) 1,776 - 2014 1,552 1,562 1,572 1,572 1,583 1,584 1,588 1,587 ( 1) 1 275,040 ( 5) ( 1) 1,582 - 2015 1,511 1,498 1,494 1,483 1,482 1,485 1,487 2 10 260,934 ( 5) ( 2) 1,482 8 2016 1,536 1,533 1,533 1,540 1,542 1,544 2 15 247,133 - - 1,544 15 2017 1,878 2,137 2,011 2,057 1,924 ( 133) 46 219,420 - - 1,924 46 2018 2,188 2,193 2,154 1,937 ( 217) 52 101,536 - - 1,937 52 2019 1,593 1,664 1,646 ( 18) 185 91,463 - - 1,646 185 2020 954 906 ( 48) 155 52,251 - - 906 155 2021 748 129 40,437 - - 748 129 Total $ 15,656 $ ( 415) $ ( 12) 15,644 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 14,582) - 6 ( 14,576) Liabilities for losses and loss adjustment expenses and prior year development before accident year 2012, net of reinsurance ( 62) 3 ( 5) ( 67) Unallocated loss adjustment expense prior year development - Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 1,012 $ ( 412) $ ( 11) 1,001 Incurred Losses and Loss Adjustment Expenses, Undiscounted, Net of Reinsurance (including impact of ADC) Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ 2,088 $ 2,091 $ 2,093 $ 2,098 $ 2,100 $ 2,099 $ ( 1) 2013 1,774 1,774 1,774 1,776 1,776 1,776 - 2014 1,564 1,564 1,571 1,580 1,584 1,582 ( 2) 2015 1,476 1,475 1,472 1,476 1,480 1,482 2 2016 1,536 1,533 1,533 1,540 1,542 1,544 2 2017 1,878 2,137 2,011 2,057 1,924 ( 133) 2018 2,188 2,193 2,154 1,937 ( 217) 2019 1,593 1,664 1,646 ( 18) 2020 954 906 ( 48) 2021 748 Total $ 8,438 $ 10,315 $ 12,768 $ 14,267 $ 15,311 $ 15,644 $ ( 415) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 14,576) Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance ( 67) 4 Unallocated loss adjustment expense prior year development - Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 1,001 $ ( 411) The following table provides our attribution of our reinsurance recoverable for the ADC only (included in the table above): Calendar Years Ended December 31, (in millions) Prior Year Development Accident Year 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ 11 $ ( 3) $ ( 2) $ ( 1) $ ( 1) $ ( 1) $ - 2013 ( 8) ( 6) ( 2) ( 1) ( 2) ( 1) 1 2014 ( 8) ( 8) ( 12) ( 4) ( 4) ( 5) ( 1) 2015 ( 22) ( 19) ( 11) ( 6) ( 5) ( 5) - 2016 - - - - - - - 2017 - - - - - - - 2018 - - - - - - - 2019 - - - - - - - 2020 - - - - - - - 2021 - - - - - - - Total $ ( 27) $ ( 36) $ ( 27) $ ( 12) $ ( 12) $ ( 12) $ - Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below 6 Liabilities for losses and allocated loss adjustment expenses and prior year development before 2012, net of reinsurance ( 5) 1 Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ ( 11) $ 1 |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance Years Ended December 31, (in millions) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Paid Impact of Adverse Development Reinsurance Agreement Unaudited 2012 $ 1,238 $ 1,936 $ 1,996 $ 2,035 $ 2,065 $ 2,079 $ 2,085 $ 2,095 $ 2,098 $ 2,099 $ ( 1) 2013 1,109 1,634 1,705 1,744 1,759 1,766 1,772 1,774 1,775 - 2014 959 1,380 1,463 1,507 1,536 1,555 1,568 1,572 ( 3) 2015 931 1,320 1,411 1,439 1,455 1,461 1,463 ( 2) 2016 857 1,344 1,422 1,460 1,501 1,512 - 2017 941 1,672 1,896 1,789 1,826 - 2018 1,227 1,939 1,973 1,789 - 2019 884 1,295 1,379 - 2020 667 679 - 2021 488 - Total $ 14,582 $ ( 6) |
UK/Europe Casualty and Financial Lines | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance* Years Ended December 31, (in millions) December 31, 2021 Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2012 $ 1,116 $ 1,095 $ 1,060 $ 1,136 $ 1,198 $ 1,175 $ 1,240 $ 1,226 $ 1,240 $ 1,246 $ 6 $ 38 141,043 2013 1,068 1,114 1,087 1,069 1,075 1,149 1,194 1,218 1,212 ( 6) 63 109,088 2014 1,066 1,041 1,065 1,029 1,069 1,156 1,100 1,141 41 67 101,702 2015 1,125 1,271 1,267 1,210 1,283 1,272 1,275 3 93 112,671 2016 1,351 1,483 1,538 1,540 1,643 1,640 ( 3) 200 140,787 2017 1,334 1,359 1,289 1,356 1,419 63 257 148,004 2018 1,379 1,452 1,521 1,551 30 407 151,608 2019 1,483 1,296 1,372 76 543 139,801 2020 1,253 1,303 50 834 86,834 2021 1,557 1,204 62,310 Total $ 13,716 $ 260 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 7,339) - Liabilities for losses and loss adjustment expenses and prior year development before accident year 2012, net of reinsurance 798 ( 50) Unallocated loss adjustment expense prior year development - Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 7,175 $ 210 * The losses reported in the table are not covered by the ADC. |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance* Years Ended December 31, (in millions) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ 108 $ 311 $ 456 $ 636 $ 769 $ 861 $ 965 $ 1,026 $ 1,056 $ 1,079 2013 92 347 499 637 756 875 957 1,007 1,040 2014 74 266 422 545 649 718 783 845 2015 73 246 444 584 706 886 979 2016 123 389 602 795 955 1,086 2017 100 288 460 619 774 2018 116 383 586 760 2019 101 323 490 2020 61 233 2021 53 Total $ 7,339 * The losses reported in the table are not covered by the ADC. |
UK/Europe Property and Special Risks | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance* Years Ended December 31, (in millions) December 31, 2021 Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2012 $ 1,336 $ 1,230 $ 1,160 $ 1,144 $ 1,125 $ 1,130 $ 1,115 $ 1,096 $ 1,103 $ 1,104 $ 1 $ 6 40,170 2013 1,438 1,430 1,319 1,298 1,283 1,274 1,256 1,247 1,246 ( 1) 2 40,053 2014 1,492 1,517 1,496 1,487 1,495 1,469 1,430 1,425 ( 5) ( 5) 48,480 2015 1,613 1,562 1,544 1,513 1,486 1,475 1,462 ( 13) 13 53,970 2016 1,581 1,729 1,722 1,724 1,720 1,716 ( 4) 22 56,996 2017 1,702 1,659 1,650 1,656 1,639 ( 17) 44 53,464 2018 1,570 1,580 1,555 1,545 ( 10) 73 44,018 2019 1,206 1,148 1,143 ( 5) 121 32,749 2020 1,329 1,278 ( 51) 281 24,220 2021 1,223 444 14,493 Total $ 13,781 $ ( 105) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 11,204) - Liabilities for losses and loss adjustment expenses and prior year development before accident year 2012, net of reinsurance 54 ( 13) Unallocated loss adjustment expense prior year development - Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 2,631 $ ( 118) * The losses reported in the table are not covered by the ADC. |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance* Years Ended December 31, (in millions) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ 281 $ 730 $ 922 $ 991 $ 1,038 $ 1,064 $ 1,073 $ 1,080 $ 1,081 $ 1,085 2013 336 825 1,053 1,129 1,179 1,200 1,211 1,217 1,219 2014 322 938 1,225 1,296 1,335 1,363 1,373 1,386 2015 352 940 1,223 1,330 1,367 1,390 1,400 2016 467 1,138 1,396 1,534 1,581 1,610 2017 360 965 1,252 1,400 1,458 2018 323 1,002 1,194 1,324 2019 272 666 840 2020 257 688 2021 194 Total $ 11,204 * The losses reported in the table are not covered by the ADC. |
UK/Europe and Japan Personal Insurance | |
Claims Development [Line Items] | |
Schedule of incurred losses and allocated loss adjustment expenses, Undiscounted and net of reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance* Years Ended December 31, (in millions) December 31, 2021 Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Prior Year Development Total of IBNR Liabilities Plus Expected Development on Reported Losses Cumulative Number of Reported Claims Unaudited 2012 $ 2,871 $ 2,853 $ 2,834 $ 2,819 $ 2,828 $ 2,818 $ 2,815 $ 2,814 $ 2,813 $ 2,812 $ ( 1) $ 1 1,730,022 2013 2,720 2,721 2,686 2,686 2,681 2,677 2,674 2,673 2,671 ( 2) 3 1,736,664 2014 2,682 2,692 2,674 2,671 2,664 2,663 2,664 2,662 ( 2) 3 1,795,001 2015 2,753 2,728 2,730 2,719 2,718 2,718 2,717 ( 1) 6 1,775,633 2016 2,703 2,698 2,682 2,674 2,673 2,668 ( 5) 10 1,797,359 2017 2,643 2,559 2,541 2,536 2,533 ( 3) 14 1,722,818 2018 3,137 3,050 3,055 3,055 - 59 1,885,145 2019 2,521 2,474 2,473 ( 1) 89 1,656,951 2020 2,252 2,104 ( 148) 141 1,354,093 2021 2,171 388 1,197,412 Total $ 25,866 $ ( 163) Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance from the table below ( 23,950) - Liabilities for losses and loss adjustment expenses and prior year development before accident year 2012, net of reinsurance 46 ( 10) Unallocated loss adjustment expense prior year development - Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance $ 1,962 $ ( 173) * The losses reported in the table are not covered by the ADC. |
Schedule of cumulative paid losses and allocated loss adjustment expenses, Net of reinsurance | Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance* Years Ended December 31, (in millions) Accident Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Unaudited 2012 $ 1,603 $ 2,348 $ 2,576 $ 2,682 $ 2,739 $ 2,768 $ 2,785 $ 2,793 $ 2,798 $ 2,802 2013 1,492 2,229 2,445 2,551 2,607 2,638 2,650 2,657 2,663 2014 1,464 2,206 2,427 2,536 2,593 2,618 2,632 2,641 2015 1,486 2,247 2,468 2,587 2,630 2,661 2,683 2016 1,485 2,211 2,427 2,532 2,587 2,616 2017 1,453 2,164 2,353 2,437 2,479 2018 1,853 2,577 2,781 2,885 2019 1,454 2,090 2,247 2020 1,212 1,746 2021 1,188 Total $ 23,950 * The losses reported in the table are not covered by the ADC. |
VARIABLE LIFE AND ANNUITY CON_2
VARIABLE LIFE AND ANNUITY CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
VARIABLE LIFE AND ANNUITY CONTRACTS | |
Schedule of Account balances of variable annuity contracts with guarantees were invested in separate account investment | At December 31, (in millions) 2021 2020* Equity funds $ 62,241 $ 56,762 Bond funds 9,016 8,298 Balanced funds 29,311 27,307 Money market funds 1,005 1,122 Total $ 101,573 $ 93,489 |
Schedule of details concerning entity's GMDB exposures, by benefit type | At December 31, 2021 2020 Net Deposits Net Deposits Plus a Minimum Highest Contract Plus a Minimum Highest Contract (dollars in millions) Return Value Attained Return Value Attained Account value $ 114,936 $ 17,298 $ 105,010 $ 16,667 Net amount at risk 509 258 490 276 Average attained age of contract holders by product 66 72 65 72 Range of guaranteed minimum return rates 0- 4.50% 0- 4.50% |
Schedule of changes in GMDB liabilities for guarantees on variable contracts reflected in the general account | Years Ended December 31, (in millions) 2021 2020 2019 Balance, beginning of year $ 421 $ 407 $ 397 Reserve increase (decrease) 72 41 35 Benefits paid ( 35) ( 43) ( 40) Changes in reserves related to unrealized appreciation (depreciation) of investments ( 13) 16 15 Balance, end of year $ 445 $ 421 $ 407 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
DEBT | |
Schedule of total debt outstanding | Balance at Balance at At December 31, 2021 Range of Maturity December 31, December 31, (in millions) Interest Rate(s) Date(s) 2021 2020 Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable 0% - 8.13% 2022 - 2055 $ 19,633 $ 23,068 Junior subordinated debt 4.88% - 8.18% 2037 - 2058 1,164 1,561 AIG Japan Holdings Kabushiki Kaisha 0.20% - 0.35% 2023 - 2025 333 361 AIGLH notes and bonds payable 6.63% - 7.50% 2025 - 2029 199 282 AIGLH junior subordinated debt 7.57% - 8.50% 2030 - 2046 227 361 Validus notes and bonds payable 8.88% 2040 293 348 Total AIG general borrowings 21,849 25,981 AIG borrowings supported by assets: (a) Series AIGFP matched notes and bonds payable 0.175% - 0.18% 2046 18 21 GIAs, at fair value 0.00% - 7.15% 2022 - 2047 1,803 2,033 Notes and bonds payable, at fair value 0.50% - 10.37% 2030 - 2037 68 64 Total AIG borrowings supported by assets 1,889 2,118 Total debt issued or guaranteed by AIG 23,738 28,099 Other subsidiaries notes, bonds, loans and mortgages payable - not guaranteed by AIG 2.76% - 5.70% 2022 - 2024 3 4 Total long-term debt 23,741 28,103 Debt of consolidated investment entities - not guaranteed by AIG (b) 0% - 7.95% 2022 - 2051 6,422 9,431 Total debt $ 30,163 $ 37,534 (a) AIG Parent guarantees all such debt, except for Series AIGFP matched notes and bonds payable, which are direct obligations of AIG Parent. Collateral posted to third parties was $ billion at both December 31, 2021 and December 31, 2020, respectively. This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties. (b) At December 31, 2021, includes debt of consolidated investment entities primarily related to real estate investments of $ 1.9 billion and other securitization vehicles of $ 4.5 billion. At December 31, 2020, includes debt of consolidated investment entities related to real estate investments of $ 3.1 billion, affordable housing partnership investments of $ 2.3 billion and other securitization vehicles of $ 4.0 billion. |
Maturities of long-term debt, excluding borrowings of debt of consolidated investments | December 31, 2021 Year Ending (in millions) Total 2022 2023 2024 2025 2026 Thereafter Debt issued or guaranteed by AIG: AIG general borrowings: Notes and bonds payable $ 19,633 $ 17 $ 1,614 $ 999 $ 2,752 $ 1,543 $ 12,708 Junior subordinated debt 1,164 - - - - - 1,164 AIG Japan Holdings Kabushiki Kaisha 333 - 218 - 115 - - AIGLH notes and bonds payable 199 - - - 101 - 98 AIGLH junior subordinated debt 227 - - - - - 227 Validus notes and bonds payable 293 - - - - - 293 Total AIG general borrowings 21,849 17 1,832 999 2,968 1,543 14,490 AIG borrowings supported by assets: Series AIGFP matched notes and bonds payable 18 - - - - - 18 GIAs, at fair value 1,803 50 124 146 571 100 812 Notes and bonds payable, at fair value 68 - - - - - 68 Total AIG borrowings supported by assets 1,889 50 124 146 571 100 898 Total debt issued or guaranteed by AIG 23,738 67 1,956 1,145 3,539 1,643 15,388 Debt not guaranteed by AIG: Other subsidiaries notes, bonds, loans and mortgages payable 3 1 2 - - - - Total debt not guaranteed by AIG 3 1 2 - - - - Total * $ 23,741 $ 68 $ 1,958 $ 1,145 $ 3,539 $ 1,643 $ 15,388 * Does not reflect $ 6.4 billion of notes issued by consolidated investment entities, for which recourse is limited to the assets of the respective investment entities and for which there is no recourse to the general credit of AIG. |
Schedule of detail for uncollateralized and collateralized notes, bonds, loans and mortgages payable | Uncollateralized Collateralized At December 31, 2021 Notes/Bonds/Loans Loans and (in millions) Payable Mortgages Payable Total AIG general borrowings $ 333 $ - $ 333 Other subsidiaries notes, bonds, loans and mortgages payable * - 3 3 Total $ 333 $ 3 $ 336 * AIG does not guarantee any of these borrowings. |
Summary of Credit Facility | At December 31, 2021 Available Effective (in millions) Size Amount Expiration Date Syndicated Credit Facility $ 4,500 $ 4,500 November 2026 11/19/2021 |
CONTINGENCIES, COMMITMENTS AN_2
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
Future Undiscounted Cash Flows Under Operating Leases | (in millions) 2022 $ 212 2023 178 2024 138 2025 111 2026 87 Remaining years after 2026 730 Total undiscounted lease payments $ 1,456 Less: Present value adjustment 266 Net lease liabilities 1,190 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Class of Stock [Line Items] | |
Rollforward of common stock outstanding | Common Treasury Common Stock Stock Issued Stock Outstanding Year Ended December 31, 2019 Shares, beginning of year 1,906,671,492 ( 1,040,062,063) 866,609,429 Shares issued - 3,389,602 3,389,602 Shares repurchased - - - Shares, end of year 1,906,671,492 ( 1,036,672,461) 869,999,031 Year Ended December 31, 2020 Shares, beginning of year 1,906,671,492 ( 1,036,672,461) 869,999,031 Shares issued - 3,719,970 3,719,970 Shares repurchased - ( 12,160,952) ( 12,160,952) Shares, end of year 1,906,671,492 ( 1,045,113,443) 861,558,049 Year Ended December 31, 2021 Shares, beginning of year 1,906,671,492 ( 1,045,113,443) 861,558,049 Shares issued - 6,853,070 6,853,070 Shares repurchased - ( 49,723,756) ( 49,723,756) Shares, end of year 1,906,671,492 ( 1,087,984,129) 818,687,363 |
Dividends Paid | Dividends Paid Declaration Date Record Date Payment Date Per Common Share November 4, 2021 December 16, 2021 December 30, 2021 $ 0.32 August 5, 2021 September 16, 2021 September 30, 2021 0.32 May 6, 2021 June 15, 2021 June 29, 2021 0.32 February 16, 2021 March 16, 2021 March 30, 2021 0.32 November 5, 2020 December 14, 2020 December 28, 2020 $ 0.32 August 3, 2020 September 17, 2020 September 30, 2020 0.32 May 4, 2020 June 15, 2020 June 29, 2020 0.32 February 12, 2020 March 16, 2020 March 30, 2020 0.32 October 31, 2019 December 12, 2019 December 26, 2019 $ 0.32 August 7, 2019 September 17, 2019 September 30, 2019 0.32 May 6, 2019 June 14, 2019 June 28, 2019 0.32 February 13, 2019 March 15, 2019 March 29, 2019 0.32 |
Repurchases Of Common Stock and Warrant | Years Ended December 31, (in millions) 2021 2020 2019 Aggregate repurchases of common stock $ 2,643 $ 500 $ - Total number of common shares repurchased 50 12 - Aggregate repurchases of warrants * $ - $ - $ - Total number of warrants repurchased - - - * Our warrants to purchase shares of AIG Common Stock expired on January 19, 2021. |
Accumulated Other Comprehensive Income (Loss) | Unrealized Appreciation Fair Value of (Depreciation) of Fixed Unrealized Liabilities Under Maturity Securities on Appreciation Foreign Retirement Fair Value Option Which Other-Than- (Depreciation) Currency Plan Attributable to Temporary Credit of All Other Translation Liabilities Changes in (in millions) Impairments Were Taken Investments Adjustments Adjustment Own Credit Risk Total Balance, January 1, 2019, net of tax $ ( 38) $ 2,426 $ ( 2,725) $ ( 1,086) $ 10 $ ( 1,413) Change in unrealized appreciation of investments 842 13,333 - - - 14,175 Change in deferred policy acquisition costs adjustment and other * 15 ( 1,871) - - - ( 1,856) Change in future policy benefits - ( 4,462) - - - ( 4,462) Change in foreign currency translation adjustments - - 135 - - 135 Change in net actuarial loss - - - ( 58) - ( 58) Change in prior service credit - - - ( 2) - ( 2) Change in deferred tax asset (liability) ( 196) ( 1,311) ( 31) 24 - ( 1,514) Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - ( 3) ( 3) Total other comprehensive income (loss) 661 5,689 104 ( 36) ( 3) 6,415 Noncontrolling interests - 16 4 - - 20 Balance, December 31, 2019, net of tax $ 623 $ 8,099 $ ( 2,625) $ ( 1,122) $ 7 $ 4,982 Unrealized Appreciation Fair Value of (Depreciation) of Fixed Unrealized Liabilities Under Maturity Securities on Appreciation Foreign Retirement Fair Value Option Which Allowance (Depreciation) Currency Plan Attributable to for Credit Losses of All Other Translation Liabilities Changes in (in millions) Was Taken Investments Adjustments Adjustment Own Credit Risk Total Balance, January 1, 2020, net of tax $ - $ 8,722 $ ( 2,625) $ ( 1,122) $ 7 $ 4,982 Change in unrealized appreciation (depreciation) of investments ( 133) 9,624 - - - 9,491 Change in deferred policy acquisition costs adjustment and other 11 ( 1,327) - - - ( 1,316) Change in future policy benefits - 2,408 - - - 2,408 Change in foreign currency translation adjustments - - 303 - - 303 Change in net actuarial loss - - - ( 67) - ( 67) Change in prior service credit - - - ( 18) - ( 18) Change in deferred tax asset (liability) 27 ( 2,351) 56 ( 21) - ( 2,289) Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - 1 1 Total other comprehensive income (loss) ( 95) 8,354 359 ( 106) 1 8,513 Noncontrolling interests - ( 17) 1 - - ( 16) Balance, December 31, 2020, net of tax $ ( 95) $ 17,093 $ ( 2,267) $ ( 1,228) $ 8 $ 13,511 Change in unrealized appreciation (depreciation) of investments 58 ( 9,313) - - - ( 9,255) Change in deferred policy acquisition costs adjustment and other ( 14) 885 - - - 871 Change in future policy benefits - 917 - - - 917 Change in foreign currency translation adjustments - - ( 117) - - ( 117) Change in net actuarial loss - - - 417 - 417 Change in prior service cost - - - 8 - 8 Change in deferred tax asset (liability) ( 9) 1,510 ( 70) ( 100) - 1,331 Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - ( 2) ( 2) Total other comprehensive income (loss) 35 ( 6,001) ( 187) 325 ( 2) ( 5,830) Other changes in AOCI: SAFG 9.9% noncontrolling interest sale 3 ( 1,100) ( 2) - - ( 1,099) Noncontrolling interests - ( 102) ( 3) - - ( 105) Balance, December 31, 2021, net of tax $ ( 57) $ 10,094 $ ( 2,453) $ ( 903) $ 6 $ 6,687 * Includes net unrealized gains and losses attributable to businesses held for sale at December 31, 2019. |
Other comprehensive income (loss) reclassification adjustments | Unrealized Appreciation Fair Value of (Depreciation) of Fixed Unrealized Liabilities Under Maturity Securities on Appreciation Foreign Retirement Fair Value Option Which Other-Than- (Depreciation) Currency Plan Attributable to Temporary Credit of All Other Translation Liabilities Changes in (in millions) Impairments Were Taken Investments Adjustments Adjustment Own Credit Risk Total December 31, 2019 Unrealized change arising during period $ 853 $ 7,324 $ 135 $ ( 97) $ ( 3) $ 8,212 Less: Reclassification adjustments included in net income ( 4) 324 - ( 37) - 283 Total other comprehensive income (loss), before income tax expense (benefit) 857 7,000 135 ( 60) ( 3) 7,929 Less: Income tax expense (benefit) 196 1,311 31 ( 24) - 1,514 Total other comprehensive income (loss), net of income tax expense (benefit) $ 661 $ 5,689 $ 104 $ ( 36) $ ( 3) $ 6,415 Unrealized Appreciation Fair Value of (Depreciation) of Fixed Unrealized Liabilities Under Maturity Securities on Appreciation Foreign Retirement Fair Value Option Which Allowance (Depreciation) Currency Plan Attributable to for Credit Losses of All Other Translation Liabilities Changes in (in millions) Was Taken Investments Adjustments Adjustment Own Credit Risk Total December 31, 2020 Unrealized change arising during period $ ( 161) $ 11,758 $ 303 $ ( 130) $ 1 $ 11,771 Less: Reclassification adjustments included in net income ( 39) 1,053 - ( 45) - 969 Total other comprehensive income (loss), before income tax expense (benefit) ( 122) 10,705 303 ( 85) 1 10,802 Less: Income tax expense (benefit) ( 27) 2,351 ( 56) 21 - 2,289 Total other comprehensive income (loss), net of income tax expense (benefit) $ ( 95) $ 8,354 $ 359 $ ( 106) $ 1 $ 8,513 December 31, 2021 Unrealized change arising during period $ 44 $ ( 6,583) $ ( 117) $ 379 $ ( 2) $ ( 6,279) Less: Reclassification adjustments included in net income - 928 - ( 46) - 882 Total other comprehensive income (loss), before income tax expense (benefit) 44 ( 7,511) ( 117) 425 ( 2) ( 7,161) Less: Income tax expense (benefit) 9 ( 1,510) 70 100 - ( 1,331) Total other comprehensive income (loss), net of income tax expense (benefit) $ 35 $ ( 6,001) $ ( 187) $ 325 $ ( 2) $ ( 5,830) |
Schedule of effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income | Affected Line Item in the Years Ended December 31, Amount Reclassified from AOCI Consolidated Statements (in millions) 2021 2020 2019 of Income (Loss) Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken Investments $ - $ ( 39) $ - Net realized gains Total - ( 39) - Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken Investments $ - $ - $ ( 4) Net realized gains Total - - ( 4) Unrealized appreciation (depreciation) of all other investments Investments 928 1,053 324 Net realized gains Total 928 1,053 324 Change in retirement plan liabilities adjustment Prior-service credit ( 3) ( 1) - * Actuarial losses ( 43) ( 44) ( 37) * Total ( 46) ( 45) ( 37) Total reclassifications for the year $ 882 $ 969 $ 283 * These AOCI components are included in the computation of net periodic pension cost. For additional information see Note 20. |
Changes in Ownership Interest | Year Ended December 31, (in millions) 2021 Net income attributable to AIG common shareholders $ 9,359 Changes in AIG equity for sale of 9.9% interest in SAFG ( 629) Change from Net income attributable to AIG common shareholders and changes in AIG's ownership interests $ 8,730 |
Preferred Stock | |
Class of Stock [Line Items] | |
Dividends Paid | Dividends Paid Declaration Date Record Date Payment Date Per Preferred Share Per Depositary Share November 4, 2021 November 30, 2021 December 15, 2021 $ 365.625 $ 0.365625 August 5, 2021 August 31, 2021 September 15, 2021 365.625 0.365625 May 6, 2021 May 31, 2021 June 15, 2021 365.625 0.365625 February 16, 2021 February 26, 2021 March 15, 2021 365.625 0.365625 November 5, 2020 November 30, 2020 December 15, 2020 $ 365.625 $ 0.365625 August 3, 2020 August 31, 2020 September 15, 2020 365.625 0.365625 May 4, 2020 May 29, 2020 June 15, 2020 365.625 0.365625 February 12, 2020 February 28, 2020 March 16, 2020 365.625 0.365625 October 31, 2019 November 29, 2019 December 16, 2019 $ 365.625 $ 0.365625 August 7, 2019 August 30, 2019 September 16, 2019 365.625 0.365625 May 21, 2019 May 31, 2019 June 17, 2019 369.6875 0.3696875 |
EARNINGS PER COMMON SHARE (EP_2
EARNINGS PER COMMON SHARE (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER COMMON SHARE (EPS) | |
Computation of basic and diluted EPS | Years Ended December 31, (dollars in millions, except per common share data) 2021 2020 2019 Numerator for EPS: Income (loss) from continuing operations $ 9,923 $ ( 5,833) $ 4,121 Less: Net income from continuing operations attributable to noncontrolling interests 535 115 821 Less: Preferred stock dividends 29 29 22 Income (loss) attributable to AIG common shareholders from continuing operations 9,359 ( 5,977) 3,278 Income from discontinued operations, net of income tax expense - 4 48 Net income (loss) attributable to AIG common shareholders $ 9,359 $ ( 5,973) $ 3,326 Denominator for EPS: Weighted average common shares outstanding – basic 854,320,449 869,309,458 876,750,264 Dilutive common shares 10,564,430 - 12,761,682 Weighted average common shares outstanding – diluted (a)(b) 864,884,879 869,309,458 889,511,946 Income (loss) per common share attributable to AIG common shareholders: Basic: Income (loss) from continuing operations $ 10.95 $ ( 6.88) $ 3.74 Income from discontinued operations $ - $ - $ 0.05 Income (loss) attributable to AIG common shareholders $ 10.95 $ ( 6.88) $ 3.79 Diluted: Income (loss) from continuing operations $ 10.82 $ ( 6.88) $ 3.69 Income from discontinued operations $ - $ - $ 0.05 Income (loss) attributable to AIG common shareholders $ 10.82 $ ( 6.88) $ 3.74 (a) For the year ended December 31, 2020, because we reported a net loss attributable to AIG common shareholders, all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts. The number of common shares excluded from the calculation was 5,401,597 shares. (b) Potential dilutive common shares include our share-based employee compensation plans, a weighted average portion of the 10-year warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011, which expired in January 2021 and an option for Blackstone to exchange all or a portion of its ownership interest in SAFG for AIG common shares. The number of common shares excluded from diluted shares outstanding was 12.0 million, 68.7 million and 20.0 million for the years ended December 31, 2021, 2020 and 2019, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive. |
STATUTORY FINANCIAL DATA AND _2
STATUTORY FINANCIAL DATA AND RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
STATUTORY FINANCIAL DATA AND RESTRICTIONS | |
Schedule of statutory capital and surplus and net income (loss) for AIG property casualty and AIG life and retirement operations in accordance with statutory accounting practices | (in millions) 2021 2020 2019 Years Ended December 31, Statutory net income (loss) (a)(b) General Insurance companies: Domestic $ 2,732 $ 1,044 $ 1,481 Foreign 1,597 797 1,384 Total General Insurance companies $ 4,329 $ 1,841 $ 2,865 Life and Retirement companies: Domestic $ 2,586 $ 482 $ 325 Foreign ( 1) 11 3,336 Total Life and Retirement companies $ 2,585 $ 493 $ 3,661 At December 31, Statutory capital and surplus (a)(b) General Insurance companies: Domestic $ 19,356 $ 18,195 Foreign 15,448 15,386 Total General Insurance companies $ 34,804 $ 33,581 Life and Retirement companies: Domestic $ 12,485 $ 10,960 Foreign 627 663 Total Life and Retirement companies $ 13,112 $ 11,623 Aggregate minimum required statutory capital and surplus: General Insurance companies: Domestic $ 4,032 $ 3,862 Foreign 7,666 7,429 Total General Insurance companies $ 11,698 $ 11,291 Life and Retirement companies: Domestic $ 3,850 $ 3,574 Foreign 214 207 Total Life and Retirement companies $ 4,064 $ 3,781 (a) Excludes discontinued operations and other divested businesses. Statutory capital and surplus and net income (loss) with respect to foreign operations are as of November 30. (b) The 2021 amounts reflect our best estimate of the statutory net income, capital and surplus as of the date of AIG’s Form 10-K filing. In aggregate, the 2020 General Insurance companies and Life and Retirement companies statutory net income decreased by $ 223 million and the 2020 General Insurance companies and Life and Retirement companies statutory capital and surplus increased by $ 55 million, compared to the amounts previously reported in our Annual Report on Form 10-K for the year ended December 31, 2020, due to finalization of statutory filings and revision of prior period numbers. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION PLANS | |
Schedule of share-based compensation expense recognized in Consolidated Statements of Income | Years Ended December 31, (in millions) 2021 2020 2019 Share-based compensation expense - pre-tax (a) $ 278 $ 274 $ 314 Share-based compensation expense - after tax (b) 220 216 248 (a) As a result of accelerated vesting events, such as retirement eligibility in the year of grant and involuntary terminations, we recognized $ 67 million, $ 63 million and $ 82 million in 2021, 2020 and 2019, respectively, prior to the end of the specified vesting periods. It is our policy to reverse compensation expense for forfeited awards when they occur. (b) We also recognized $ 16 million of additional tax expense due to share settlements occurring in 2021. |
Schedule of assumptions used to estimate the fair value of PSUs based on AIG's TSR | 2021 Expected dividend yield (a) - % Expected volatility (b) 47.63 % Risk-free interest rate (c) 0.28 % (a) The award agreement provides that TSR for AIG and each member of the Peer Group will be calculated assuming dividends distributed are reinvested on the ex-dividend date. (b) We used the historical volatility over the most recent 2.81-year period for AIG and the members of the Peer Group, commensurate with the remaining Performance Period as of the Valuation Date. (c) We converted the semi-annual zero-coupon U.S. Treasury rates as of the Valuation Date to continuously compounded rates. We then chose the continuously compounded risk-free rate that is commensurate with the length of the remaining performance period as of the valuation date and interpolated between the yields of the two-year three-year |
Summary of outstanding share-settled LTI awards | Weighted Average As of or for the Year Number of Units Grant-Date Fair Value Ended December 31, 2021 (b) 2021 LTI 2020 LTI 2019 LTI 2021 LTI 2020 LTI 2019 LTI Unvested, beginning of year - 5,348,656 3,497,419 $ - $ 31.33 $ 44.79 Granted 5,948,029 - - 44.96 - - Vested (c) ( 1,344,917) ( 771,594) ( 3,174,495) 44.90 30.57 44.76 Forfeited ( 214,678) ( 410,568) ( 322,924) 44.60 31.79 44.85 Unvested, end of year (d) 4,388,434 4,166,494 - $ 45.00 $ 31.43 $ - (a) Excludes stock options, other RSUs and DSUs, which are discussed under Stock Options, Other RSU Grants and Non-Employee Plan, respectively. (b) PSUs represent target amount granted and does not reflect potential increases or decreases that could result from the final outcome of the performance goals for the respective awards, which is determined by the CMRC in the quarter after the applicable performance period ends. (c) Also reflects units that vest as a result of an accelerated vesting event that occurred prior to the specified vesting date. (d) At December 31, 2021, the total unrecognized compensation cost for outstanding RSUs and PSUs was $ 185 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 0.95 year and 2 years. |
Schedule of weighted-average assumptions | The following weighted-average assumptions were used for stock options granted: 2021 2020 2019 Expected annual dividend yield (a) 2.89 % 3.97 % 2.86 % Expected volatility (b) 36.68 % 42.03 % 23.17 % Risk-free interest rate (c) 0.95 % 0.57 % 2.47 % Expected term (d) 6.43 years 6.39 years 6.38 years (a) The dividend yield is the projected annualized AIG dividend yield estimated by Bloomberg Professional service as of the valuation date. (b) The expected volatility is based on the implied volatility of 24 months stock option estimated by the Bloomberg Professional service as of the valuation date. (c) The risk-free interest rate is the continuously compounded interest rate for the term between the valuation date and the expiration date that is assumed to be constant and equal to the interpolated value between the closest data points on the U.S. dollar LIBOR-swap curve as of the valuation date. (d) The contractual terms are 7 and 10 years from the date of grant. |
Schedule of stock option activity | The following table provides a rollforward of stock option activity: Weighted Average Aggregate As of or for the Year Weighted Average Remaining Intrinsic Values Ended December 31, 2021 Units Exercise Price Contractual Life (in millions) Outstanding, beginning of year 11,429,491 $ 47.67 7.59 Granted 2,674,353 44.23 Exercised ( 674,216) 46.16 Forfeited or expired ( 408,201) 45.13 Outstanding, end of year 13,021,427 $ 47.12 7.32 $ 142 Exercisable, end of year 4,047,524 $ 52.88 6.27 $ 21 |
Summary of outstanding share-settled RSU grants | Weighted Average As of or for the Year Number of Units Grant-Date Fair Value Ended December 31, 2021 2020 2019 2021 2020 2019 Unvested, beginning of year 1,151,380 1,231,185 1,634,610 $ 46.18 $ 54.17 $ 56.11 Granted 493,140 583,068 399,779 49.36 35.54 52.40 Vested ( 699,067) ( 535,220) ( 774,350) 50.03 50.89 57.32 Forfeited ( 125,813) ( 127,653) ( 28,854) 51.80 54.90 55.23 Unvested, end of year 819,640 1,151,380 1,231,185 $ 43.95 $ 46.18 $ 54.17 |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of funded status of the plans reconciled to the amount reported in the balance sheets | As of or for the Years Ended Pension Postretirement December 31, U.S. Plans (a) Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (in millions) 2021 2020 2021 2020 2021 2020 2021 2020 Change in projected benefit obligation: Benefit obligation, beginning of year $ 5,410 $ 4,972 $ 1,231 $ 1,174 $ 191 $ 181 $ 71 $ 61 Service cost 5 5 21 21 1 1 1 1 Interest cost 92 134 9 10 3 5 2 2 Actuarial (gain) loss (b) ( 384) 612 10 1 ( 10) 17 ( 17) 8 Benefits paid: AIG assets ( 18) ( 17) ( 9) ( 9) ( 11) ( 13) ( 1) ( 1) Plan assets ( 174) ( 294) ( 30) ( 21) - - - - Plan amendment - - - 18 - - ( 2) - Curtailments - - - - - - ( 7) - Settlements ( 135) - ( 9) ( 24) - - - - Foreign exchange effect - - ( 66) 60 - - - - Other ( 1) ( 2) - 1 - - - - Projected benefit obligation, end of year $ 4,795 $ 5,410 $ 1,157 $ 1,231 $ 174 $ 191 $ 47 $ 71 Change in plan assets: Fair value of plan assets, beginning of year $ 4,931 $ 4,465 $ 977 $ 899 $ - $ - $ - $ - Actual return on plan assets, net of expenses 124 760 77 37 - - - - AIG contributions 18 17 48 49 11 13 1 1 Benefits paid: AIG assets ( 18) ( 17) ( 9) ( 9) ( 11) ( 13) ( 1) ( 1) Plan assets ( 174) ( 294) ( 30) ( 21) - - - - Settlements ( 135) - ( 9) ( 24) - - - - Foreign exchange effect - - ( 58) 46 - - - - Fair value of plan assets, end of year $ 4,746 $ 4,931 $ 996 $ 977 $ - $ - $ - $ - Funded status, end of year $ ( 49) $ ( 479) $ ( 161) $ ( 254) $ ( 174) $ ( 191) $ ( 47) $ ( 71) Amounts recognized in the balance sheet: Assets $ 198 $ - $ 84 $ 73 $ - $ - $ - $ - Liabilities ( 247) ( 479) ( 245) ( 327) ( 174) ( 191) ( 47) ( 71) Total amounts recognized $ ( 49) $ ( 479) $ ( 161) $ ( 254) $ ( 174) $ ( 191) $ ( 47) $ ( 71) Pre-tax amounts recognized in Accumulated other comprehensive income (loss): Net gain (loss) $ ( 1,162) $ ( 1,493) $ ( 119) $ ( 178) $ 3 $ ( 7) $ 11 $ ( 14) Prior service (cost) credit - - ( 34) ( 40) - - 2 - Total amounts recognized $ ( 1,162) $ ( 1,493) $ ( 153) $ ( 218) $ 3 $ ( 7) $ 13 $ ( 14) (a) Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $ 247 million and $ 282 million for the U.S. at December 31, 2021 and 2020, respectively, and $ 204 million and $ 243 million for the non-U.S. at December 31, 2021 and 2020, respectively. (b) The significant gain in 2021 is primarily due to the changes in discount rates and the mortality projection scale for the U.S. AIG Retirement Plan. |
Schedule of accumulated benefit obligations | At December 31, (in millions) 2021 2020 U.S. pension benefit plans $ 4,795 $ 5,410 Non-U.S. pension benefit plans $ 1,141 $ 1,213 |
Schedule of projected benefit obligation in excess of the plan assets and the accumulated benefit obligation in excess of the plan assets | At December 31, PBO Exceeds Fair Value of Plan Assets ABO Exceeds Fair Value of Plan Assets U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2021 2020 2021 2020 2021 2020 2021 2020 Projected benefit obligation $ 247 $ 5,410 $ 897 $ 1,019 $ - $ - $ - $ - Accumulated benefit obligation - - - - 247 5,410 836 931 Fair value of plan assets - 4,931 605 620 - 4,931 605 620 |
Schedule of components of net periodic benefit cost | Years Ended December 31, Pension Postretirement U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 Components of net periodic benefit cost: Service cost * $ 5 $ 5 $ 5 $ 21 $ 21 $ 21 $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 Interest cost 92 134 176 9 10 15 3 5 6 2 2 2 Expected return on assets ( 243) ( 239) ( 229) ( 21) ( 21) ( 21) - - - - - - Amortization of prior service cost (credit) - - - 3 2 2 - - - - ( 1) ( 2) Amortization of net (gain) loss 33 33 35 7 8 5 - - ( 1) 1 - - Net periodic benefit cost (credit) ( 113) ( 67) ( 13) 19 20 22 4 6 6 4 2 1 Settlement (credit) charges 34 - - 1 3 ( 2) - - - - - - Net benefit cost (credit) $ ( 79) $ ( 67) $ ( 13) $ 20 $ 23 $ 20 $ 4 $ 6 $ 6 $ 4 $ 2 $ 1 Total recognized in Accumulated other comprehensive income (loss) $ 332 $ ( 57) $ 14 $ 65 $ ( 1) $ ( 45) $ 10 $ ( 17) $ ( 17) $ 27 $ ( 9) $ ( 10) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ 411 $ 10 $ 27 $ 45 $ ( 24) $ ( 65) $ 6 $ ( 23) $ ( 23) $ 23 $ ( 11) $ ( 11) * Reflects administrative fees for the U.S. pension plans. |
Schedule of weighted average assumptions used to determine the benefit obligations | Pension Postretirement U.S. Plans Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (a) December 31, 2021 Discount rate 2.75 % 1.09 % 2.87 % 2.89 % Interest crediting rate 2.06 % 0.70 % (b) N/A N/A Rate of compensation increase N/A (c) 2.40 % N/A N/A December 31, 2020 Discount rate 2.28 % 1.00 % 2.25 % 2.33 % Interest crediting rate 1.57 % 0.72 % (b) N/A N/A Rate of compensation increase N/A (c) 2.28 % N/A N/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 | At December 31, 2021 2020 Following year: Medical (before age 65) 5.45% 5.55% Medical (age 65 and older) 4.98% 5.00% Ultimate rate to which cost increase is assumed to decline 4.00% 4.50% Year in which the ultimate trend rate is reached: Medical (before age 65) 2046 2038 Medical (age 65 and older) 2046 2038 |
Schedule of weighted average assumptions used to determine the net periodic benefit costs | Pension Postretirement U.S. Plans Non-U.S. Plans (a) U.S. Plans Non-U.S. Plans (a) For the Year Ended December 31, 2021 Discount rate 2.28 % 1.00 % 2.45 % 2.33 % Interest crediting rate 1.57 % 0.72 % (b) N/A N/A Rate of compensation increase N/A 2.28 % N/A N/A Expected return on assets 5.15 % 2.23 % N/A N/A For the Year Ended December 31, 2020 Discount rate 3.16 % 1.09 % 3.14 % 3.18 % Interest crediting rate 2.19 % 0.44 % (b) N/A N/A Rate of compensation increase N/A 2.22 % N/A 3.00 % Expected return on assets 5.55 % 2.32 % N/A N/A For the Year Ended December 31, 2019 Discount rate 4.22 % 1.71 % 4.17 % 4.12 % Interest crediting rate 3.34 % 0.74 % (b) N/A N/A Rate of compensation increase N/A 2.27 % N/A 3.00 % Expected return on assets 6.20 % 2.51 % N/A N/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 plan assets based on the level within the fair value hierarchy in which the fair value measurement falls | U.S. Plans Non-U.S. Plans (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total At December 31, 2021 Assets: Cash and cash equivalents $ 118 $ - $ - $ 118 $ 84 $ - $ - $ 84 Equity securities: U.S. (a) 301 - - 301 - - - - International (b) 9 - - 9 185 54 - 239 Fixed maturity securities: U.S. investment grade (c) 27 2,858 16 2,901 - - - - International investment grade (c) - 302 - 302 - 180 - 180 U.S. and international high yield (d) - 90 - 90 - 239 - 239 Mortgage and other asset-backed securities - 55 1 56 - - - - Other fixed maturity securities - 3 - 3 - 19 - 19 Other investment types (e) : Futures 4 - - 4 - - - - Direct private equity (f) - - 8 8 - - - - Insurance contracts - 11 - 11 - - 171 171 Mutual funds (g) - - - - - 64 - 64 Total $ 459 $ 3,319 $ 25 $ 3,803 $ 269 $ 556 $ 171 $ 996 At December 31, 2020 Assets: Cash and cash equivalents $ 247 $ - $ - $ 247 $ 83 $ - $ - $ 83 Equity securities: U.S. (a) 459 - - 459 - - - - International (b) 183 - - 183 155 58 - 213 Fixed maturity securities: U.S. investment grade (c) - 2,217 10 2,227 - - - - International investment grade (c) - 237 - 237 - 174 - 174 U.S. and international high yield (d) - 282 - 282 - 269 - 269 Mortgage and other asset-backed securities - 49 - 49 - - - - Other investment types (e) : Futures 3 ( 7) - ( 4) - - - - Direct private equity (f) - - 6 6 - - - - Insurance contracts - 13 - 13 - - 179 179 Mutual funds (g) - - - - - 59 - 59 Total $ 892 $ 2,791 $ 16 $ 3,699 $ 238 $ 560 $ 179 $ 977 (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 $ 943 million and $ 1,232 million at December 31, 2021 and 2020, 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 | Net Changes in Changes in Unrealized Realized Unrealized Gains (Losses) Included and Gains (Losses) in Other Comprehensive Balance Unrealized Balance on Instruments Income (Loss) for Recurring At December 31, 2021 Beginning Gains Transfers Transfers at End Held at Level 3 Instruments (in millions) of Year (Losses) Purchases Sales Issuances Settlements In Out of Year End of Year Held at End of Year U.S. Plan Assets: Fixed maturity securities U.S. investment grade $ 10 $ - $ 5 $ ( 4) $ - $ - $ 5 $ - $ 16 $ - $ - Mortgage and other asset-backed securities - - 1 - - - - - 1 - - Direct private equity 6 2 - - - - - - 8 1 - Total $ 16 $ 2 $ 6 $ ( 4) $ - $ - $ 5 $ - $ 25 $ 1 $ - Non-U.S. Plan Assets: Insurance contracts $ 179 $ ( 9) $ 1 $ - $ - $ - $ - $ - $ 171 $ - $ - Total $ 179 $ ( 9) $ 1 $ - $ - $ - $ - $ - $ 171 $ - $ - Net Changes in Changes in Unrealized Realized Unrealized Gains (Losses) Included and Gains (Losses) in Other Comprehensive Balance Unrealized Balance on Instruments Income (Loss) for Recurring At December 31, 2020 Beginning Gains Transfers Transfers at End Held at Level 3 Instruments (in millions) of year (Losses) Purchases Sales Issuances Settlements In Out of year End of year Held at End of Year U.S. Plan Assets: Fixed maturity securities U.S. investment grade $ 9 $ 1 $ - $ - $ - $ - $ - $ - $ 10 $ - $ - Direct private equity 11 ( 3) - ( 2) - - - - 6 ( 3) - Total $ 20 $ ( 2) $ - $ ( 2) $ - $ - $ - $ - $ 16 $ ( 3) $ - Non-U.S. Plan Assets: Insurance contracts $ 160 $ 18 $ 1 $ - $ - $ - $ - $ - $ 179 $ - $ - Total $ 160 $ 18 $ 1 $ - $ - $ - $ - $ - $ 179 $ - $ - |
Schedule of expected future benefit payments, net of participants' contributions | Pension Postretirement U.S. Non-U.S. U.S. Non-U.S. (in millions) Plans Plans Plans Plans 2022 $ 324 $ 40 $ 12 $ 1 2023 309 42 12 1 2024 326 48 12 1 2025 312 51 11 1 2026 304 53 10 2 2027-2031 1,409 282 46 9 |
U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of asset allocation percentage by major asset class and target allocation | Target Actual Actual At December 31, 2022 2021 2020 Asset class: Equity securities 15 % 15 % 25 % Fixed maturity securities 75 71 57 Other investments 10 14 18 Total 100 % 100 % 100 % |
Non U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of asset allocation percentage by major asset class and target allocation | Target Actual Actual At December 31, 2022 2021 2020 Asset class: Equity securities 20 % 24 % 22 % Fixed maturity securities 57 44 45 Other investments 20 24 24 Cash and cash equivalents 3 8 9 Total 100 % 100 % 100 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
Schedule of income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location | Years Ended December 31, (in millions) 2021 2020 2019 U.S. $ 9,838 $ ( 8,396) $ 3,825 Foreign 2,261 1,103 1,462 Total $ 12,099 $ ( 7,293) $ 5,287 |
Schedule of income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations | Years Ended December 31, (in millions) 2021 2020 2019 Foreign and U.S. components of actual income tax expense (benefit): U.S.: Current $ ( 216) $ ( 57) $ 278 Deferred 2,190 ( 1,676) 633 Foreign: Current 171 274 267 Deferred 31 ( 1) ( 12) Total $ 2,176 $ ( 1,460) $ 1,166 |
Schedule of reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate | Years Ended December 31, 2021 2020 2019 Pre-Tax Tax Percent of Pre-Tax Tax Percent of Pre-Tax Tax Percent of Income Expense/ Pre-Tax Income Expense/ Pre-Tax Income Expense/ Pre-Tax (dollars in millions) (Loss) (Benefit) Income (Loss) (Loss) (Benefit) Income (Loss) (Loss) (Benefit) Income (Loss) U.S. federal income tax at statutory rate $ 12,099 $ 2,540 21.0 % $ ( 7,288) $ ( 1,531) 21.0 % $ 5,336 $ 1,120 21.0 % Adjustments: Tax exempt interest ( 18) ( 0.1) ( 19) 0.3 ( 25) ( 0.5) Uncertain tax positions* ( 9) ( 0.1) 165 ( 2.3) 258 4.8 Reclassifications from AOCI ( 109) ( 0.9) ( 101) 1.4 ( 113) ( 2.1) Dispositions of subsidiaries 11 0.1 180 ( 2.5) 21 0.4 Non-controlling interest ( 97) ( 0.8) ( 12) 0.2 ( 5) ( 0.1) Non-deductible transfer pricing charges 16 0.1 11 ( 0.2) 15 0.3 Dividends received deduction ( 37) ( 0.3) ( 39) 0.5 ( 40) ( 0.7) Effect of foreign operations 134 1.1 76 ( 1.0) 82 1.5 Share-based compensation payments excess tax effect 16 0.1 35 ( 0.5) 27 0.5 State income taxes 37 0.3 15 ( 0.2) 13 0.2 Expiration of tax attribute carryforwards 16 0.1 221 ( 3.0) - - Tax audit resolution ( 935) ( 7.6) ( 379) 5.2 - - Other* ( 107) ( 0.9) ( 16) 0.2 ( 134) ( 2.5) Effect of discontinued operations - - - - ( 8) ( 0.1) Valuation allowance: Continuing operations 718 5.9 ( 65) 0.9 ( 44) ( 0.8) Consolidated total amounts 12,099 2,176 18.0 ( 7,288) ( 1,459) 20.0 5,336 1,167 21.9 Amounts attributable to discontinued operations - - - 5 1 20.0 49 1 2.0 Amounts attributable to continuing operations $ 12,099 $ 2,176 18.0 % $ ( 7,293) $ ( 1,460) 20.0 % $ 5,287 $ 1,166 22.1 % * 2020 includes a net charge of $ 67 million related to the accrual of IRS interest, of which $ 139 million tax expense is reported in Uncertain tax positions and $ 72 million tax benefit is reported in Other. 2019 includes a net charge of $ 96 million related to the accrual of IRS interest, of which $ 207 million tax expense is reported in Uncertain tax positions and $( 111) million tax benefit is reported in Other. |
Schedule of components of the net deferred tax asset | December 31, (in millions) 2021 2020 Deferred tax assets: Losses and tax credit carryforwards $ 7,291 $ 9,257 Basis differences on investments 2,944 3,718 Fortitude Re funds withheld embedded derivative 543 1,193 Life policy reserves 3,751 2,396 Accruals not currently deductible, and other 634 632 Investments in foreign subsidiaries - 146 Loss reserve discount 455 423 Loan loss and other reserves 509 560 Unearned premium reserve reduction 283 326 Fixed assets and intangible assets 1,262 1,077 Other 247 - Employee benefits 407 567 Total deferred tax assets 18,326 20,295 Deferred tax liabilities: Investments in foreign subsidiaries ( 15) - Deferred policy acquisition costs ( 2,054) ( 2,026) Unrealized gains related to available for sale debt securities ( 2,791) ( 4,328) Other - ( 221) Total deferred tax liabilities ( 4,860) ( 6,575) Net deferred tax assets before valuation allowance 13,466 13,720 Valuation allowance ( 1,987) ( 1,330) Net deferred tax assets (liabilities) $ 11,479 $ 12,390 |
Schedule of consolidated income tax group tax losses carryforwards | Unlimited Carryforward Period and December 31, 2021 Carryforward Tax Carryforward Period Ending Tax Year (b) Periods (b) (in millions) Gross Effected 2022 2023 2024 2025 2026 2027 2028 - After Net operating loss carryforwards $ 27,597 $ 5,795 $ - $ - $ - $ - $ - $ - $ 5,795 Capital loss carryforwards $ - - - - - - - - - Foreign tax credit carryforwards 284 - 284 - - - - - Other carryforwards - - - - - - - - Total AIG U.S. consolidated federal income tax group tax losses and credits carryforwards on a U.S. GAAP basis (a) $ 6,079 $ - $ 284 $ - $ - $ - $ - $ 5,795 (a) Financial reporting basis reflects the impact of unrecognized tax benefits for tax years in which tax attributes can be realized through carryback upon settlement. (b) Carryforward periods are based on U.S. tax laws governing utilization of tax attributes. Expiration periods are based on the year the carryforward was generated. |
Schedule of net deferred tax assets (liabilities) | December 31, (in millions) 2021 2020 Net U.S. consolidated return group deferred tax assets $ 14,616 $ 16,502 Net deferred tax assets (liabilities) in AOCI ( 2,764) ( 4,259) Valuation allowance ( 859) ( 237) Subtotal 10,993 12,006 Net foreign, state and local deferred tax assets 1,849 1,711 Valuation allowance ( 1,128) ( 1,093) Subtotal 721 618 Subtotal - Net U.S., foreign, state and local deferred tax assets 11,714 12,624 Net foreign, state and local deferred tax liabilities ( 235) ( 234) Total AIG net deferred tax assets (liabilities) $ 11,479 $ 12,390 |
Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | Years Ended December 31, (in millions) 2021 2020 2019 Gross unrecognized tax benefits, beginning of year $ 2,343 $ 4,762 $ 4,709 Increases in tax positions for prior years 22 45 51 Decreases in tax positions for prior years ( 1,233) ( 131) ( 1) Increases in tax positions for current year 37 13 4 Settlements ( 12) ( 2,346) ( 1) Gross unrecognized tax benefits, end of year $ 1,157 $ 2,343 $ 4,762 |
Schedule of tax years that remain subject to examination by major tax jurisdictions | At December 31, 2021 Open Tax Years Major Tax Jurisdiction United States 2007- 2020 Australia 2017- 2020 Canada 2014- 2020 France 2019- 2020 Japan 2015- 2020 Korea 2014- 2020 Singapore 2017- 2020 United Kingdom 2020- 2020 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | Dec. 15, 2021USD ($) | Nov. 02, 2021USD ($)individual | Nov. 01, 2021USD ($) | Jul. 16, 2021USD ($)item | Jun. 02, 2020USD ($) | May 26, 2020USD ($) | Feb. 16, 2022USD ($) | Dec. 31, 2021USD ($)item$ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2026USD ($) | Nov. 13, 2018 |
Basis of Presentation [Line Items] | ||||||||||||
Number of countries in which the entity operates | item | 70 | |||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 2.50 | $ 2.5 | ||||||||||
Net income (loss) on sale of divested businesses | $ 3,044,000,000 | $ (8,525,000,000) | $ (75,000,000) | |||||||||
Policyholder contract deposits | 156,686,000,000 | 154,470,000,000 | ||||||||||
Future policy benefits for life and accident and health insurance contracts | $ 59,950,000,000 | $ 56,878,000,000 | ||||||||||
Life and Retirement Retail Mutual Funds | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Number of funds managed | item | 6 | |||||||||||
Life and Retirement Retail Mutual Funds | Disposal Group | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Assets under management | $ 6,800,000,000 | |||||||||||
Number of funds managed | item | 12 | |||||||||||
Life and retirement subsidiaries | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Voting interest in subsidiary, percent | 9.90% | |||||||||||
Total consideration | $ 2,200,000,000 | |||||||||||
Decrease to stockholders' equity related to disposal | 629,000,000 | |||||||||||
Assets under management | 50,000,000,000 | |||||||||||
Assets under management, incremental increase amount | $ 8,500,000,000 | |||||||||||
Dividends payable | $ 8,300,000,000 | |||||||||||
Percent of ownership interest permitted to be sold after first anniversary | 25.00% | |||||||||||
Percent of ownership interest permitted to be sold after second anniversary | 67.00% | |||||||||||
Percent of ownership interest permitted to be sold after third anniversary | 75.00% | |||||||||||
Notes issued | $ 8,300,000,000 | |||||||||||
Life and retirement subsidiaries | Subsequent Event [Member] | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Repayment of notes payable | $ 0 | |||||||||||
SAFG | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Number of directors | individual | 11 | |||||||||||
American International Group, Inc. | Fortitude Holdings | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Percentage of common stock held after closing of transaction | 3.50% | 3.50% | 3.50% | |||||||||
Carlyle FRL | Fortitude Holdings | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Voting interest in subsidiary, percent | 51.60% | |||||||||||
T&D | Fortitude Holdings | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Voting interest in subsidiary, percent | 25.00% | |||||||||||
Blackstone | SAFG | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Number of directors | individual | 1 | |||||||||||
Fortitude Holdings | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Total consideration | $ 2,200,000,000 | |||||||||||
Consideration in cash | 1,800,000,000 | |||||||||||
Contingent consideration receivable | $ 95,000,000 | |||||||||||
Contingent consideration receivable, maximum | 500,000,000 | |||||||||||
Benefit recorded related to purchase price adjustment | 21,000,000 | |||||||||||
Decrease to stockholders' equity related to disposal | (4,300,000,000) | |||||||||||
After tax loss on disposal | (6,700,000,000) | |||||||||||
AOCI adjustment related to release of shadow adjustments | 2,400,000,000 | |||||||||||
Write off of prepaid insurance | (2,700,000,000) | |||||||||||
Gain (loss) on disposal related to mark to market adjustments | (4,000,000,000) | |||||||||||
Maximum borrowing capacity | 600,000,000 | |||||||||||
Fortitude Holdings | General insurance subsidiaries | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Consideration contributed to subsidiaries | 700,000,000 | |||||||||||
Fortitude Holdings | Life and retirement subsidiaries | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Consideration contributed to subsidiaries | 135,000,000 | |||||||||||
Fortitude Holdings | Legacy life and retirement run-off lines | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Cession of reserves | 29,600,000,000 | |||||||||||
Fortitude Holdings | Legacy general insurance run-off lines | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Cession of reserves | $ 3,800,000,000 | |||||||||||
Fortitude Holdings | TC Group Cayman | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Voting interest in subsidiary, percent | 19.90% | 19.90% | ||||||||||
Contingent consideration receivable | $ 115,000,000 | |||||||||||
Contingent consideration received | $ 79,600,000 | |||||||||||
Additional contingent consideration receivable | $ 19,900,000 | |||||||||||
Fortitude Holdings | Carlyle FRL and T&D | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Purchase price adjustment | 383,000,000 | |||||||||||
Blackboard U.S. Holdings, Inc | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Net income (loss) on sale of divested businesses | $ (210,000,000) | |||||||||||
AIG's Interest In US Affordable Housing Portfolio | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Total consideration | $ 4,900,000,000 | |||||||||||
Net income (loss) on sale of divested businesses | $ 3,000,000,000 | |||||||||||
Scenario Adjustment [Member] | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Policyholder contract deposits | (5,800,000,000) | |||||||||||
Future policy benefits for life and accident and health insurance contracts | $ 5,800,000,000 | |||||||||||
Forecast | Life and retirement subsidiaries | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Assets under management | $ 92,500,000,000 | |||||||||||
Maximum | Fortitude Holdings | ||||||||||||
Basis of Presentation [Line Items] | ||||||||||||
Purchase price adjustment | $ 500,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Narratives) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Earning pattern of a quota share reinsurance contract | 24 months | ||||
Stockholders' equity | $ 68,912 | $ 67,199 | $ 67,427 | $ 57,309 | |
ASU 2018-12 | Minimum | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Stockholders' equity | $ (1,000) | ||||
ASU 2018-12 | Maximum | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Stockholders' equity | $ (3,000) | ||||
Buildings | Maximum | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Maximum estimated useful life | 40 years | ||||
Furniture And Fixtures | Maximum | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Maximum estimated useful life | 10 years | ||||
Software Development | Maximum | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Maximum estimated useful life | 10 years | ||||
Cumulative effect of change in accounting principle | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Stockholders' equity | $ (487) |
SEGMENT INFORMATION (Details -
SEGMENT INFORMATION (Details - Schedule of continuing operations by operating segment) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total Revenues | $ 52,057 | $ 43,736 | $ 49,746 |
Net Investment Income | 14,612 | 13,631 | 14,619 |
Interest Expense | 1,305 | 1,457 | 1,417 |
Amortization of DAC | 4,573 | 4,211 | 5,164 |
Adjusted Pre-tax Income (Loss) | 12,099 | (7,293) | 5,287 |
AIG Consolidation and Elimination | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | (991) | (562) | (388) |
Net Investment Income | (996) | (572) | (385) |
Interest Expense | (65) | (70) | (55) |
Amortization of DAC | 0 | 0 | 0 |
Adjusted Pre-tax Income (Loss) | (932) | (466) | (304) |
Total | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 48,302 | 44,685 | 48,910 |
Net Investment Income | 12,941 | 12,321 | 14,390 |
Interest Expense | 1,285 | 1,391 | 1,367 |
Amortization of DAC | 4,540 | 4,220 | 5,218 |
Adjusted Pre-tax Income (Loss) | 5,920 | 3,003 | 5,470 |
General Insurance | Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 28,361 | 26,587 | 29,882 |
Net Investment Income | 3,304 | 2,925 | 3,444 |
Interest Expense | 0 | 0 | 0 |
Amortization of DAC | 3,530 | 3,538 | 4,482 |
Adjusted Pre-tax Income (Loss) | 4,359 | 1,901 | 3,533 |
General Insurance | Reportable Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 10,989 | 10,302 | 12,136 |
Interest Expense | 0 | 0 | 0 |
Amortization of DAC | 1,333 | 1,365 | 1,923 |
Adjusted Pre-tax Income (Loss) | (47) | (1,301) | (365) |
General Insurance | Reportable Segments | International | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 14,068 | 13,360 | 14,302 |
Interest Expense | 0 | 0 | 0 |
Amortization of DAC | 2,197 | 2,173 | 2,559 |
Adjusted Pre-tax Income (Loss) | 1,102 | 277 | 454 |
General Insurance | Reportable Segments | Net Investment Income | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 3,304 | 2,925 | 3,444 |
Net Investment Income | 3,304 | 2,925 | 3,444 |
Interest Expense | 0 | 0 | 0 |
Amortization of DAC | 0 | 0 | 0 |
Adjusted Pre-tax Income (Loss) | 3,304 | 2,925 | 3,444 |
Life and Retirement | Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 19,594 | 17,275 | 16,356 |
Net Investment Income | 9,521 | 8,881 | 8,733 |
Interest Expense | 130 | 155 | 162 |
Amortization of DAC | 973 | 632 | 672 |
Adjusted Pre-tax Income (Loss) | 3,911 | 3,531 | 3,553 |
Life and Retirement | Reportable Segments | Individual Retirement | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 6,083 | 5,714 | 5,643 |
Net Investment Income | 4,338 | 4,131 | 4,122 |
Interest Expense | 61 | 72 | 77 |
Amortization of DAC | 736 | 590 | 449 |
Adjusted Pre-tax Income (Loss) | 1,939 | 1,938 | 1,977 |
Life and Retirement | Reportable Segments | Group Retirement | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 3,291 | 2,970 | 2,947 |
Net Investment Income | 2,410 | 2,236 | 2,240 |
Interest Expense | 35 | 42 | 44 |
Amortization of DAC | 61 | 7 | 81 |
Adjusted Pre-tax Income (Loss) | 1,284 | 1,013 | 937 |
Life and Retirement | Reportable Segments | Life Insurance | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 5,112 | 4,877 | 4,825 |
Net Investment Income | 1,619 | 1,526 | 1,483 |
Interest Expense | 25 | 30 | 30 |
Amortization of DAC | 170 | 30 | 137 |
Adjusted Pre-tax Income (Loss) | 106 | 142 | 331 |
Life and Retirement | Reportable Segments | Institutional Markets | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 5,108 | 3,714 | 2,941 |
Net Investment Income | 1,154 | 988 | 888 |
Interest Expense | 9 | 11 | 11 |
Amortization of DAC | 6 | 5 | 5 |
Adjusted Pre-tax Income (Loss) | 582 | 438 | 308 |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 347 | 823 | 2,672 |
Net Investment Income | 116 | 515 | 2,213 |
Interest Expense | 1,155 | 1,236 | 1,205 |
Amortization of DAC | 37 | 50 | 64 |
Adjusted Pre-tax Income (Loss) | (2,350) | (2,429) | (1,616) |
Other Operations | Reportable Segments | |||
Segment Reporting Information [Line Items] | |||
Total Revenues | 1,338 | 1,385 | 3,060 |
Net Investment Income | 1,112 | 1,087 | 2,598 |
Interest Expense | 1,220 | 1,306 | 1,260 |
Amortization of DAC | 37 | 50 | 64 |
Adjusted Pre-tax Income (Loss) | $ (1,418) | $ (1,963) | $ (1,312) |
SEGMENT INFORMATION (Details _2
SEGMENT INFORMATION (Details - Schedule of continuing operations by operating segment, reconciling items) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciling items to pre-tax income (loss): | |||
Gain (loss) on extinguishment of debt | $ (389) | $ (12) | $ (32) |
Net Investment Income | 14,612 | 13,631 | 14,619 |
Net realized gains (losses) on embedded derivatives | 2,151 | (2,238) | 632 |
Income (loss) from divestitures | 3,044 | (8,525) | (75) |
Net loss reserve discount benefit (charge) | 193 | (516) | (955) |
Revenues | 52,057 | 43,736 | 49,746 |
Amortization of DAC | 4,562 | 4,188 | 4,993 |
Adjusted Pre-tax Income (Loss) | 12,099 | (7,293) | 5,287 |
Excluding Fortitude Re funds withheld assets | |||
Reconciling items to pre-tax income (loss): | |||
Net Investment Income | 12,641 | 12,578 | 14,619 |
Net realized gains (losses) on embedded derivatives | 1,751 | (56) | 632 |
Fortitude Re funds withheld assets | |||
Reconciling items to pre-tax income (loss): | |||
Net Investment Income | 1,971 | 1,053 | 0 |
Net realized gains (losses) on embedded derivatives | 1,003 | 463 | 0 |
Fortitude Re funds withheld embedded derivative | |||
Reconciling items to pre-tax income (loss): | |||
Net realized gains (losses) on embedded derivatives | (603) | (2,645) | 0 |
Total Revenues | |||
Reconciling items to pre-tax income (loss): | |||
Changes in fair values of securities used to hedge guaranteed living benefits | 60 | 56 | 228 |
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) | 0 | 0 | 0 |
Changes in fair value of equity securities | (237) | 200 | 158 |
Other income (expense) - net | (24) | 49 | 46 |
Gain (loss) on extinguishment of debt | 0 | 0 | 0 |
Net realized gains (losses) | 1,585 | (148) | 395 |
Income (loss) from divestitures | 0 | 0 | 0 |
Non-operating litigation reserves and settlements | 0 | 23 | 9 |
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 0 | 0 | 0 |
Net loss reserve discount benefit (charge) | 0 | 0 | 0 |
Pension expense related to lump sum payments to former employees | 0 | ||
Integration and transaction costs associated with acquiring or divesting businesses | 0 | 0 | 0 |
Restructuring and other costs | 0 | 0 | 0 |
Non-recurring costs related to regulatory or accounting changes | 0 | 0 | 0 |
Total Revenues | Fortitude Re funds withheld assets | |||
Reconciling items to pre-tax income (loss): | |||
Net Investment Income | 1,971 | 1,053 | |
Net realized gains (losses) on embedded derivatives | 1,003 | 463 | |
Total Revenues | Fortitude Re funds withheld embedded derivative | |||
Reconciling items to pre-tax income (loss): | |||
Net realized gains (losses) on embedded derivatives | (603) | (2,645) | |
Net Investment Income | |||
Reconciling items to pre-tax income (loss): | |||
Changes in fair values of securities used to hedge guaranteed living benefits | 60 | 56 | 228 |
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) | 0 | 0 | 0 |
Changes in fair value of equity securities | (237) | 200 | 158 |
Other income (expense) - net | 33 | 99 | 85 |
Gain (loss) on extinguishment of debt | 0 | 0 | 0 |
Net realized gains (losses) | (156) | (98) | (242) |
Income (loss) from divestitures | 0 | 0 | 0 |
Non-operating litigation reserves and settlements | 0 | 0 | 0 |
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 0 | 0 | 0 |
Net loss reserve discount benefit (charge) | 0 | 0 | 0 |
Pension expense related to lump sum payments to former employees | 0 | ||
Integration and transaction costs associated with acquiring or divesting businesses | 0 | 0 | 0 |
Restructuring and other costs | 0 | 0 | 0 |
Non-recurring costs related to regulatory or accounting changes | 0 | 0 | 0 |
Net Investment Income | Fortitude Re funds withheld assets | |||
Reconciling items to pre-tax income (loss): | |||
Net Investment Income | 1,971 | 1,053 | |
Net realized gains (losses) on embedded derivatives | 0 | 0 | |
Net Investment Income | Fortitude Re funds withheld embedded derivative | |||
Reconciling items to pre-tax income (loss): | |||
Net realized gains (losses) on embedded derivatives | 0 | 0 | |
Interest Expense | |||
Reconciling items to pre-tax income (loss): | |||
Changes in fair values of securities used to hedge guaranteed living benefits | 0 | 0 | 0 |
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) | 0 | 0 | 0 |
Changes in fair value of equity securities | 0 | 0 | 0 |
Other income (expense) - net | 33 | 99 | 87 |
Gain (loss) on extinguishment of debt | 0 | 0 | 0 |
Net realized gains (losses) | (13) | (33) | (37) |
Income (loss) from divestitures | 0 | 0 | 0 |
Non-operating litigation reserves and settlements | 0 | 0 | 0 |
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 0 | 0 | 0 |
Net loss reserve discount benefit (charge) | 0 | 0 | 0 |
Pension expense related to lump sum payments to former employees | 0 | ||
Integration and transaction costs associated with acquiring or divesting businesses | 0 | 0 | 0 |
Restructuring and other costs | 0 | 0 | 0 |
Non-recurring costs related to regulatory or accounting changes | 0 | 0 | 0 |
Interest Expense | Fortitude Re funds withheld assets | |||
Reconciling items to pre-tax income (loss): | |||
Net Investment Income | 0 | 0 | |
Net realized gains (losses) on embedded derivatives | 0 | 0 | |
Interest Expense | Fortitude Re funds withheld embedded derivative | |||
Reconciling items to pre-tax income (loss): | |||
Net realized gains (losses) on embedded derivatives | 0 | 0 | |
Amortization of DAC | |||
Reconciling items to pre-tax income (loss): | |||
Changes in fair values of securities used to hedge guaranteed living benefits | 0 | 0 | 0 |
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) | 33 | (9) | (54) |
Changes in fair value of equity securities | 0 | 0 | 0 |
Other income (expense) - net | 0 | 0 | 0 |
Gain (loss) on extinguishment of debt | 0 | 0 | 0 |
Net realized gains (losses) | 0 | 0 | 0 |
Income (loss) from divestitures | 0 | 0 | 0 |
Non-operating litigation reserves and settlements | 0 | 0 | 0 |
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 0 | 0 | 0 |
Net loss reserve discount benefit (charge) | 0 | 0 | 0 |
Pension expense related to lump sum payments to former employees | 0 | ||
Integration and transaction costs associated with acquiring or divesting businesses | 0 | 0 | 0 |
Restructuring and other costs | 0 | 0 | 0 |
Non-recurring costs related to regulatory or accounting changes | 0 | 0 | 0 |
Amortization of DAC | Fortitude Re funds withheld assets | |||
Reconciling items to pre-tax income (loss): | |||
Net Investment Income | 0 | 0 | |
Net realized gains (losses) on embedded derivatives | 0 | 0 | |
Amortization of DAC | Fortitude Re funds withheld embedded derivative | |||
Reconciling items to pre-tax income (loss): | |||
Net realized gains (losses) on embedded derivatives | 0 | 0 | |
Adjusted Pre-tax Income (Loss) | |||
Reconciling items to pre-tax income (loss): | |||
Changes in fair values of securities used to hedge guaranteed living benefits | 61 | 41 | 194 |
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) | (52) | 12 | 56 |
Changes in fair value of equity securities | (237) | 200 | 158 |
Other income (expense) - net | 0 | 0 | 0 |
Gain (loss) on extinguishment of debt | (389) | (12) | (32) |
Net realized gains (losses) | 1,623 | (97) | 456 |
Income (loss) from divestitures | 3,044 | (8,525) | (75) |
Non-operating litigation reserves and settlements | (3) | 21 | 2 |
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 186 | 221 | 267 |
Net loss reserve discount benefit (charge) | 193 | (516) | (955) |
Pension expense related to lump sum payments to former employees | (34) | ||
Integration and transaction costs associated with acquiring or divesting businesses | (83) | (12) | (24) |
Restructuring and other costs | (433) | (435) | (218) |
Non-recurring costs related to regulatory or accounting changes | (68) | (65) | $ (12) |
Adjusted Pre-tax Income (Loss) | Fortitude Re funds withheld assets | |||
Reconciling items to pre-tax income (loss): | |||
Net Investment Income | 1,971 | 1,053 | |
Net realized gains (losses) on embedded derivatives | 1,003 | 463 | |
Adjusted Pre-tax Income (Loss) | Fortitude Re funds withheld embedded derivative | |||
Reconciling items to pre-tax income (loss): | |||
Net realized gains (losses) on embedded derivatives | $ (603) | $ (2,645) |
SEGMENT INFORMATION (Details _3
SEGMENT INFORMATION (Details - Schedule of year-end identifiable assets and capital expenditures by segment) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | $ 596,112 | $ 586,481 |
Capital Expenditures | 343 | 353 |
General Insurance | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 159,000 | 155,751 |
Capital Expenditures | 76 | 156 |
Life and Retirement | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 406,104 | 397,749 |
Capital Expenditures | 62 | 107 |
Other Operations | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Year-End Identifiable Assets | 31,008 | 32,981 |
Capital Expenditures | $ 205 | $ 90 |
SEGMENT INFORMATION (Details _4
SEGMENT INFORMATION (Details - Consolidated total revenues and real estate and other fixed assets by major geographic area) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 52,057 | $ 43,736 | $ 49,746 |
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 1,712 | 1,840 | 1,953 |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 37,224 | 30,204 | 36,930 |
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | 1,212 | 1,230 | 1,333 |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 14,833 | 13,532 | 12,816 |
Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | $ 500 | $ 610 | $ 620 |
SEGMENT INFORMATION (Details _5
SEGMENT INFORMATION (Details - Narrative) | 12 Months Ended |
Dec. 31, 2021segment | |
General Insurance | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 2 |
Life and Retirement | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 4 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details - Long Term Debt) | Dec. 31, 2021 |
Borrowings supported by assets | GIAs | Maximum | |
Debt Instrument [Line Items] | |
Range of guaranteed minimum return rates (as a percent) | 7.15% |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | [1] | $ 277,202 | $ 271,496 |
Other bond securities | [1] | 6,278 | 5,291 |
Equity securities | [1] | 739 | 1,056 |
Other invested assets | 10,504 | 8,422 | |
Derivative Assets, Fair Value, Gross | 5,761 | 6,805 | |
Derivative assets, Counterparty netting | (2,779) | (3,812) | |
Derivative assets, Cash collateral | (2,139) | (2,219) | |
Derivative assets | 843 | 774 | |
Short-term investments | 4,426 | 5,968 | |
Separate account assets, at fair value | 109,111 | 100,290 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 9,736 | 9,798 | |
Other policyholder funds | 3,476 | 3,548 | |
Derivative Liabilities, Fair Value, Gross | 4,454 | 5,822 | |
Derivative liabilities, Counterparty netting | (2,779) | (3,812) | |
Derivative liabilities, Cash collateral | (1,089) | (1,441) | |
Derivative liabilities | 586 | 569 | |
Fortitude Re funds withheld payable | 40,771 | 43,060 | |
Other liabilities | 586 | 570 | |
Long-term debt | 1,871 | 2,097 | |
Fair Value Using Net Asset Value Per Share or its equivalent | 8,418 | 6,493 | |
Level 1 | |||
Fair Value, Liabilities Measured on Recurring Basis | |||
Fortitude Re funds withheld payable | 0 | 0 | |
Level 2 | |||
Fair Value, Liabilities Measured on Recurring Basis | |||
Fortitude Re funds withheld payable | 0 | 0 | |
Level 3 | |||
Fair Value, Liabilities Measured on Recurring Basis | |||
Fortitude Re funds withheld payable | 34,849 | 37,018 | |
Recurring Basis | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 277,202 | 271,496 | |
Other bond securities | 6,278 | 5,291 | |
Equity securities | 739 | 1,056 | |
Other invested assets | 2,086 | 1,929 | |
Derivative assets, Counterparty netting | (2,779) | (3,812) | |
Derivative assets, Cash collateral | (2,139) | (2,219) | |
Derivative assets, Counterparty netting and cash collateral | (4,918) | (6,031) | |
Derivative assets | 843 | 774 | |
Short-term investments | 4,426 | 5,968 | |
Other assets | 114 | 113 | |
Separate account assets, at fair value | 109,111 | 100,290 | |
Fair value assets measured on recurring basis, total | 400,799 | 386,917 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 9,736 | 9,798 | |
Derivative liabilities, Counterparty netting | (2,779) | (3,812) | |
Derivative liabilities, Cash collateral | (1,089) | (1,441) | |
Derivative liabilities, Counterparty netting and cash collateral | (3,868) | (5,253) | |
Derivative liabilities | 586 | 569 | |
Fortitude Re funds withheld payable | 5,922 | 6,042 | |
Other liabilities | 0 | 1 | |
Long-term debt | 1,871 | 2,097 | |
Fair value liabilities measured on recurring basis, total | 18,115 | 18,507 | |
Recurring Basis | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 3,873 | 4,637 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 3,633 | 4,436 | |
Recurring Basis | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 1,189 | 1,022 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 721 | 1,090 | |
Recurring Basis | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 681 | 1,130 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 53 | 223 | |
Recurring Basis | Commodity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 4 | ||
Recurring Basis | Credit contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 1 | 2 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 47 | 67 | |
Recurring Basis | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 13 | 14 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 0 | 6 | |
Recurring Basis | U.S. government and government sponsored entities | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 8,194 | 4,126 | |
Other bond securities | 1,750 | 1,845 | |
Recurring Basis | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 14,527 | 16,124 | |
Other bond securities | 97 | ||
Recurring Basis | Non-U.S. governments | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 16,330 | 15,345 | |
Other bond securities | 76 | 0 | |
Recurring Basis | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 175,608 | 169,298 | |
Other bond securities | 1,050 | 12 | |
Recurring Basis | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 27,287 | 31,465 | |
Other bond securities | 411 | 429 | |
Recurring Basis | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 15,809 | 16,133 | |
Other bond securities | 315 | 320 | |
Recurring Basis | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 19,447 | 19,005 | |
Other bond securities | 2,579 | 2,685 | |
Recurring Basis | Level 1 | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 2,562 | 101 | |
Other bond securities | 0 | 0 | |
Equity securities | 669 | 929 | |
Other invested assets | 0 | 0 | |
Derivative Assets, Fair Value, Gross | 7 | 9 | |
Short-term investments | 2,584 | 2,379 | |
Other assets | 0 | 0 | |
Separate account assets, at fair value | 105,221 | 96,560 | |
Fair value assets measured on recurring basis, total | 111,043 | 99,978 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 0 | 0 | |
Derivative Liabilities, Fair Value, Gross | 2 | 15 | |
Fortitude Re funds withheld payable | 0 | 0 | |
Other liabilities | 0 | 0 | |
Long-term debt | 0 | 0 | |
Fair value liabilities measured on recurring basis, total | 2 | 15 | |
Recurring Basis | Level 1 | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 1 | 1 | |
Recurring Basis | Level 1 | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 0 | 0 | |
Recurring Basis | Level 1 | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 7 | 9 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 1 | 14 | |
Recurring Basis | Level 1 | Commodity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 0 | ||
Recurring Basis | Level 1 | Credit contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 0 | 0 | |
Recurring Basis | Level 1 | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 0 | 0 | |
Recurring Basis | Level 1 | U.S. government and government sponsored entities | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 2,553 | 73 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Other bond securities | 0 | ||
Recurring Basis | Level 1 | Non-U.S. governments | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 9 | 28 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 1 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 2 | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 247,778 | 244,506 | |
Other bond securities | 3,581 | 2,593 | |
Equity securities | 64 | 76 | |
Other invested assets | 138 | 102 | |
Derivative Assets, Fair Value, Gross | 5,289 | 6,580 | |
Short-term investments | 1,842 | 3,589 | |
Other assets | 0 | 0 | |
Separate account assets, at fair value | 3,890 | 3,730 | |
Fair value assets measured on recurring basis, total | 262,582 | 261,176 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 54 | 0 | |
Derivative Liabilities, Fair Value, Gross | 4,415 | 5,710 | |
Fortitude Re funds withheld payable | 0 | 0 | |
Other liabilities | 0 | 1 | |
Long-term debt | 1,871 | 2,097 | |
Fair value liabilities measured on recurring basis, total | 6,340 | 7,808 | |
Recurring Basis | Level 2 | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 3,873 | 4,637 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 3,632 | 4,435 | |
Recurring Basis | Level 2 | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 1,188 | 1,020 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 721 | 1,090 | |
Recurring Basis | Level 2 | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 224 | 923 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 46 | 162 | |
Recurring Basis | Level 2 | Commodity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 4 | ||
Recurring Basis | Level 2 | Credit contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 16 | 23 | |
Recurring Basis | Level 2 | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 0 | 0 | |
Recurring Basis | Level 2 | U.S. government and government sponsored entities | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 5,641 | 4,053 | |
Other bond securities | 1,750 | 1,845 | |
Recurring Basis | Level 2 | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 13,096 | 14,019 | |
Other bond securities | 97 | ||
Recurring Basis | Level 2 | Non-U.S. governments | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 16,314 | 15,312 | |
Other bond securities | 76 | 0 | |
Recurring Basis | Level 2 | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 172,967 | 166,949 | |
Other bond securities | 916 | 12 | |
Recurring Basis | Level 2 | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 16,909 | 19,771 | |
Other bond securities | 215 | 290 | |
Recurring Basis | Level 2 | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 14,619 | 15,211 | |
Other bond securities | 280 | 273 | |
Recurring Basis | Level 2 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 8,232 | 9,191 | |
Other bond securities | 247 | 173 | |
Recurring Basis | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 26,862 | 26,889 | |
Other bond securities | 2,697 | 2,698 | |
Equity securities | 6 | 51 | |
Other invested assets | 1,948 | 1,827 | |
Derivative Assets, Fair Value, Gross | 465 | 216 | |
Short-term investments | 0 | 0 | |
Other assets | 114 | 113 | |
Separate account assets, at fair value | 0 | 0 | |
Fair value assets measured on recurring basis, total | 32,092 | 31,794 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 9,682 | 9,798 | |
Derivative Liabilities, Fair Value, Gross | 37 | 97 | |
Fortitude Re funds withheld payable | 5,922 | 6,042 | |
Other liabilities | 0 | 0 | |
Long-term debt | 0 | 0 | |
Fair value liabilities measured on recurring basis, total | 15,641 | 15,937 | |
Recurring Basis | Level 3 | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 0 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 0 | 0 | |
Recurring Basis | Level 3 | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 1 | 2 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 0 | 0 | |
Recurring Basis | Level 3 | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 450 | 198 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 6 | 47 | |
Recurring Basis | Level 3 | Commodity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 0 | ||
Recurring Basis | Level 3 | Credit contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 1 | 2 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 31 | 44 | |
Recurring Basis | Level 3 | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 13 | 14 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 0 | 6 | |
Recurring Basis | Level 3 | U.S. government and government sponsored entities | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 0 | 0 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 3 | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 1,431 | 2,105 | |
Other bond securities | 0 | ||
Recurring Basis | Level 3 | Non-U.S. governments | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 7 | 5 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 3 | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 2,641 | 2,349 | |
Other bond securities | 134 | 0 | |
Recurring Basis | Level 3 | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 10,378 | 11,694 | |
Other bond securities | 196 | 139 | |
Recurring Basis | Level 3 | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 1,190 | 922 | |
Other bond securities | 35 | 47 | |
Recurring Basis | Level 3 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 11,215 | 9,814 | |
Other bond securities | $ 2,332 | $ 2,512 | |
[1] | See Note 9 for details of balances associated with variable interest entities. |
FAIR VALUE MEASUREMENTS (Deta_3
FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | $ 31,578 | $ 30,958 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 1,332 | 1,096 |
Other Comprehensive Income (Loss), assets | (352) | 125 |
Purchases, Sales, Issuances and Settlements, Net, assets | (56) | (1,561) |
Gross Transfers In, assets | 1,879 | 4,289 |
Gross Transfers Out, assets | (2,692) | (3,291) |
Other | (62) | |
Divested Businesses | (38) | |
Fair Value End of Period, assets | 31,627 | 31,578 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 661 | 71 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 1,163 | 276 |
Liabilities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | 15,721 | 6,808 |
Net realized and unrealized gains (losses) included in income, liabilities | (75) | 5,222 |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (468) | 14 |
Gross Transfers In, liabilities | 0 | (1) |
Gross Transfers Out, liabilities | (2) | 5 |
Other | 0 | |
Divested Businesses | 3,673 | |
Fair Value End of Year, liabilities | 15,176 | 15,721 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 4,054 | (2,852) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Policyholder contract deposits | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | 9,798 | 6,910 |
Net realized and unrealized gains (losses) included in income, liabilities | (545) | 2,681 |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 484 | 207 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | (55) | 0 |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Year, liabilities | 9,682 | 9,798 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 1,860 | (1,515) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Derivative liabilities, net | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | (119) | (102) |
Net realized and unrealized gains (losses) included in income, liabilities | (133) | (104) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (229) | 83 |
Gross Transfers In, liabilities | 0 | (1) |
Gross Transfers Out, liabilities | 53 | 5 |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Year, liabilities | (428) | (119) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 100 | 40 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Interest rate contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | 0 | 0 |
Net realized and unrealized gains (losses) included in income, liabilities | (1) | (1) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 1 | 1 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Year, liabilities | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 1 | 2 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Foreign exchange contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | (2) | (6) |
Net realized and unrealized gains (losses) included in income, liabilities | 0 | 3 |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 1 | 1 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Year, liabilities | (1) | (2) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 0 | 1 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Equity contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | (151) | (151) |
Net realized and unrealized gains (losses) included in income, liabilities | (75) | 4 |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (271) | (8) |
Gross Transfers In, liabilities | 0 | (1) |
Gross Transfers Out, liabilities | 53 | 5 |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Year, liabilities | (444) | (151) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 32 | (33) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Credit contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | 42 | 62 |
Net realized and unrealized gains (losses) included in income, liabilities | 9 | (47) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (21) | 27 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Year, liabilities | 30 | 42 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 1 | 8 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Other contracts | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | (8) | (7) |
Net realized and unrealized gains (losses) included in income, liabilities | (66) | (63) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 61 | 62 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Year, liabilities | (13) | (8) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 66 | 62 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Fortitude Re funds withheld payable | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | 6,042 | 0 |
Net realized and unrealized gains (losses) included in income, liabilities | 603 | 2,645 |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (723) | (276) |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Other | 0 | |
Divested Businesses | 3,673 | |
Fair Value End of Year, liabilities | 5,922 | 6,042 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 2,094 | (1,377) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, liabilities | 0 | 0 |
Bonds available for sale | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 26,889 | 25,931 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 653 | 695 |
Other Comprehensive Income (Loss), assets | (339) | 122 |
Purchases, Sales, Issuances and Settlements, Net, assets | 670 | (704) |
Gross Transfers In, assets | 1,732 | 4,099 |
Gross Transfers Out, assets | (2,681) | (3,254) |
Other | (62) | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 26,862 | 26,889 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 1,163 | 276 |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 2,105 | 2,121 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 15 | 7 |
Other Comprehensive Income (Loss), assets | (9) | 211 |
Purchases, Sales, Issuances and Settlements, Net, assets | (358) | 123 |
Gross Transfers In, assets | 0 | 27 |
Gross Transfers Out, assets | (260) | (384) |
Other | (62) | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 1,431 | 2,105 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 254 | 208 |
Bonds available for sale | Non-U.S. governments | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 5 | 0 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 0 | 0 |
Other Comprehensive Income (Loss), assets | (1) | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | 1 | 4 |
Gross Transfers In, assets | 5 | 7 |
Gross Transfers Out, assets | (3) | (6) |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 7 | 5 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 0 | 0 |
Bonds available for sale | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 2,349 | 1,663 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | (20) | (110) |
Other Comprehensive Income (Loss), assets | (31) | 65 |
Purchases, Sales, Issuances and Settlements, Net, assets | 188 | 11 |
Gross Transfers In, assets | 524 | 1,482 |
Gross Transfers Out, assets | (369) | (762) |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 2,641 | 2,349 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | (141) | 79 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 11,694 | 13,408 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 595 | 745 |
Other Comprehensive Income (Loss), assets | (127) | (337) |
Purchases, Sales, Issuances and Settlements, Net, assets | (1,163) | (1,200) |
Gross Transfers In, assets | 8 | 29 |
Gross Transfers Out, assets | (629) | (951) |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 10,378 | 11,694 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 790 | (172) |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 922 | 1,053 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 25 | 18 |
Other Comprehensive Income (Loss), assets | (49) | 60 |
Purchases, Sales, Issuances and Settlements, Net, assets | 414 | (1) |
Gross Transfers In, assets | 57 | 23 |
Gross Transfers Out, assets | (179) | (231) |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 1,190 | 922 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | (55) | 55 |
Bonds available for sale | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 9,814 | 7,686 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 38 | 35 |
Other Comprehensive Income (Loss), assets | (122) | 123 |
Purchases, Sales, Issuances and Settlements, Net, assets | 1,588 | 359 |
Gross Transfers In, assets | 1,138 | 2,531 |
Gross Transfers Out, assets | (1,241) | (920) |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 11,215 | 9,814 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 315 | 106 |
Other bond securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 2,698 | 3,738 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 27 | 302 |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | (34) | (1,342) |
Gross Transfers In, assets | 6 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 2,697 | 2,698 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 41 | 20 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 0 | 0 |
Other bond securities | Corporate debt | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 0 | |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | (1) | |
Other Comprehensive Income (Loss), assets | 0 | |
Purchases, Sales, Issuances and Settlements, Net, assets | 135 | |
Gross Transfers In, assets | 0 | |
Gross Transfers Out, assets | 0 | |
Other | 0 | |
Fair Value End of Period, assets | 134 | 0 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | (1) | |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 0 | |
Other bond securities | Residential mortgage-backed securities (RMBS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 139 | 143 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 3 | 9 |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | 54 | (13) |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 196 | 139 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | (87) | 5 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 0 | 0 |
Other bond securities | Commercial mortgage-backed securities (CMBS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 47 | 50 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | (3) | 0 |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | (15) | (3) |
Gross Transfers In, assets | 6 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 35 | 47 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 2 | (2) |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 0 | 0 |
Other bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 2,512 | 3,545 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 28 | 293 |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | (208) | (1,326) |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 2,332 | 2,512 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 127 | 17 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 0 | 0 |
Equity securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 51 | 8 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 11 | (1) |
Other Comprehensive Income (Loss), assets | 1 | 6 |
Purchases, Sales, Issuances and Settlements, Net, assets | (123) | 35 |
Gross Transfers In, assets | 77 | 40 |
Gross Transfers Out, assets | (11) | (37) |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 6 | 51 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 3 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 0 | 0 |
Other invested assets | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 1,827 | 1,192 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 641 | 100 |
Other Comprehensive Income (Loss), assets | (14) | (3) |
Purchases, Sales, Issuances and Settlements, Net, assets | (570) | 388 |
Gross Transfers In, assets | 64 | 150 |
Gross Transfers Out, assets | 0 | 0 |
Other | 0 | |
Divested Businesses | 0 | |
Fair Value End of Period, assets | 1,948 | 1,827 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 617 | 51 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | 0 | 0 |
Other assets | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 113 | 89 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 0 | 0 |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | 1 | 62 |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Other | 0 | |
Divested Businesses | (38) | |
Fair Value End of Period, assets | 114 | 113 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_4
FAIR VALUE MEASUREMENTS (Details - Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | $ 1,332 | $ 1,096 |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | (545) | 2,681 |
Policyholder contract deposits | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | 0 | 0 |
Policyholder contract deposits | Net realized gains (losses) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | (545) | 2,681 |
Policyholder contract deposits | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | 0 | 0 |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | (133) | (104) |
Derivative liabilities, net | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | 0 | 0 |
Derivative liabilities, net | Net realized gains (losses) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | (74) | (47) |
Derivative liabilities, net | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | (59) | (57) |
Fortitude Re funds withheld payable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | 603 | 2,645 |
Fortitude Re funds withheld payable | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | 0 | 0 |
Fortitude Re funds withheld payable | Net realized gains (losses) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | 603 | 2,645 |
Fortitude Re funds withheld payable | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains (losses) included in income, liabilities | 0 | 0 |
Bonds available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 653 | 695 |
Bonds available for sale | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 654 | 733 |
Bonds available for sale | Net realized gains (losses) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | (1) | (38) |
Bonds available for sale | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 0 |
Other bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 27 | 302 |
Other bond securities | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 27 | 34 |
Other bond securities | Net realized gains (losses) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 268 |
Other bond securities | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 0 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 11 | (1) |
Equity securities | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 11 | 0 |
Equity securities | Net realized gains (losses) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | (1) |
Equity securities | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 0 | 0 |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 641 | 100 |
Other invested assets | Net investment income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 630 | 98 |
Other invested assets | Net realized gains (losses) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | 11 | 2 |
Other invested assets | Other Income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net realized and unrealized gains and losses related to Level 3 items, assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_5
FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issuances and settlements) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, Sales, Issuances and Settlements, Net, assets | $ (56,000,000) | $ (1,561,000,000) |
Issuances | 0 | 0 |
Transfers into Level 3 at end of reporting period, net gains (losses) not included in realized and unrealized gains and losses related to Level 3 for the period | 18,000,000 | (183,000,000) |
Transfers out Level 3 at end of reporting period, net gains (losses) included in realized and unrealized gains and losses related to Level 3 for the period. | 7,000,000 | 4,000,000 |
Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (281,000,000) | (68,000,000) |
Sales, liabilities | 824,000,000 | 721,000,000 |
Issuances and Settlements, liabilities | (1,011,000,000) | (639,000,000) |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (468,000,000) | 14,000,000 |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 0 | 0 |
Sales, liabilities | 818,000,000 | 713,000,000 |
Issuances and Settlements, liabilities | (334,000,000) | (506,000,000) |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 484,000,000 | 207,000,000 |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (281,000,000) | (68,000,000) |
Sales, liabilities | 6,000,000 | 8,000,000 |
Issuances and Settlements, liabilities | 46,000,000 | 143,000,000 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (229,000,000) | 83,000,000 |
Fortitude Re funds withheld payable | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 0 | 0 |
Sales, liabilities | 0 | 0 |
Issuances and Settlements, liabilities | (723,000,000) | (276,000,000) |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (723,000,000) | (276,000,000) |
Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 8,555,000,000 | 4,251,000,000 |
Sales, assets | (634,000,000) | (1,104,000,000) |
Issuances and Settlements, assets | (7,977,000,000) | (4,708,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (56,000,000) | (1,561,000,000) |
Bonds available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 7,515,000,000 | 3,604,000,000 |
Sales, assets | (567,000,000) | (504,000,000) |
Issuances and Settlements, assets | (6,278,000,000) | (3,804,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 670,000,000 | (704,000,000) |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 55,000,000 | 219,000,000 |
Sales, assets | (247,000,000) | (20,000,000) |
Issuances and Settlements, assets | (166,000,000) | (76,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (358,000,000) | 123,000,000 |
Bonds available for sale | Non-U.S. governments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1,000,000 | 7,000,000 |
Sales, assets | 0 | (2,000,000) |
Issuances and Settlements, assets | 0 | (1,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 1,000,000 | 4,000,000 |
Bonds available for sale | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 973,000,000 | 300,000,000 |
Sales, assets | (95,000,000) | (24,000,000) |
Issuances and Settlements, assets | (690,000,000) | (265,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 188,000,000 | 11,000,000 |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1,567,000,000 | 1,118,000,000 |
Sales, assets | (280,000,000) | (33,000,000) |
Issuances and Settlements, assets | (2,450,000,000) | (2,285,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (1,163,000,000) | (1,200,000,000) |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 510,000,000 | 56,000,000 |
Sales, assets | (15,000,000) | (17,000,000) |
Issuances and Settlements, assets | (81,000,000) | (40,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 414,000,000 | (1,000,000) |
Bonds available for sale | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 4,409,000,000 | 1,904,000,000 |
Sales, assets | 70,000,000 | (408,000,000) |
Issuances and Settlements, assets | (2,891,000,000) | (1,137,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 1,588,000,000 | 359,000,000 |
Other bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 460,000,000 | 72,000,000 |
Sales, assets | (64,000,000) | (595,000,000) |
Issuances and Settlements, assets | (430,000,000) | (819,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (34,000,000) | (1,342,000,000) |
Other bond securities | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 86,000,000 | |
Sales, assets | 0 | |
Issuances and Settlements, assets | 49,000,000 | |
Purchases, Sales, Issuances and Settlements, Net, assets | 135,000,000 | |
Other bond securities | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 54,000,000 | 37,000,000 |
Sales, assets | (10,000,000) | (16,000,000) |
Issuances and Settlements, assets | 10,000,000 | (34,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 54,000,000 | (13,000,000) |
Other bond securities | Commercial mortgage-backed securities (CMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 0 |
Sales, assets | (15,000,000) | 0 |
Issuances and Settlements, assets | 0 | (3,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (15,000,000) | (3,000,000) |
Other bond securities | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 320,000,000 | 35,000,000 |
Sales, assets | (39,000,000) | (579,000,000) |
Issuances and Settlements, assets | (489,000,000) | (782,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (208,000,000) | (1,326,000,000) |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 2,000,000 | 40,000,000 |
Sales, assets | (3,000,000) | (5,000,000) |
Issuances and Settlements, assets | (122,000,000) | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | (123,000,000) | 35,000,000 |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 578,000,000 | 480,000,000 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | (1,148,000,000) | (92,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (570,000,000) | 388,000,000 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 55,000,000 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | 1,000,000 | 7,000,000 |
Purchases, Sales, Issuances and Settlements, Net, assets | $ 1,000,000 | $ 62,000,000 |
FAIR VALUE MEASUREMENTS (Deta_6
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Assets) $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Obligations of states, municipalities and political subdivisions | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0274 | 0.0282 |
Obligations of states, municipalities and political subdivisions | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0333 | 0.0339 |
Obligations of states, municipalities and political subdivisions | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0306 | 0.0311 |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,400 | $ 1,670 |
Corporate debt | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0223 | 0.0213 |
Corporate debt | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0769 | 0.0782 |
Corporate debt | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0496 | 0.0497 |
Corporate debt | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,561 | $ 1,591 |
Residential mortgage-backed securities | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0169 | 0.0169 |
Residential mortgage-backed securities | Minimum | Measurement Input Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0525 | 0.0390 |
Residential mortgage-backed securities | Minimum | Measurement Input Loss Severity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.2613 | 0.3008 |
Residential mortgage-backed securities | Minimum | Measurement Input Constant Default Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0115 | 0.0145 |
Residential mortgage-backed securities | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0397 | 0.0425 |
Residential mortgage-backed securities | Maximum | Measurement Input Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.1770 | 0.1199 |
Residential mortgage-backed securities | Maximum | Measurement Input Loss Severity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.7193 | 0.7849 |
Residential mortgage-backed securities | Maximum | Measurement Input Constant Default Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0585 | 0.0619 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0283 | 0.0297 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.1147 | 0.0794 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Loss Severity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.4903 | 0.5429 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Constant Default Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0350 | 0.0382 |
Residential mortgage-backed securities | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 9,916 | $ 11,297 |
Certain CDO/ABS | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0184 | 0.0193 |
Certain CDO/ABS | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0477 | 0.0485 |
Certain CDO/ABS | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0331 | 0.0339 |
Certain CDO/ABS | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 8,229 | $ 8,324 |
Commercial mortgage backed securities | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0150 | 0.0092 |
Commercial mortgage backed securities | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0501 | 0.0589 |
Commercial mortgage backed securities | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0325 | 0.0340 |
Commercial mortgage backed securities | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 580 | $ 541 |
FAIR VALUE MEASUREMENTS (Deta_7
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input Equity Volatility [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0595 | 0.0645 |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0016 | 0.0016 |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input Dynamic Lapse Multiplier [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.2000 | 0.5000 |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input Mortality Multiplier [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.3800 | 0.3800 |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input Utilization Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.9000 | 0.9000 |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input Equity Interest Rate Correlation [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.2000 | 0.2000 |
Variable annuity guaranteed minimum withdrawal benefits | Minimum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0001 | 0.0006 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input Equity Volatility [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.4665 | 0.5085 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.1260 | 0.1260 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input Dynamic Lapse Multiplier [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1.8600 | 1.4300 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input Mortality Multiplier [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1.4700 | 1.4700 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input Utilization Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1 | 1 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input Equity Interest Rate Correlation [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.4000 | 0.4000 |
Variable annuity guaranteed minimum withdrawal benefits | Maximum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0140 | 0.0148 |
Variable annuity guaranteed minimum withdrawal benefits | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 2,472 | $ 3,572 |
Index annuities including certain GMWB | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability | $ 1,200 | $ 726 |
Index annuities including certain GMWB | Minimum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0050 | 0.0038 |
Index annuities including certain GMWB | Minimum | Measurement Input Dynamic Lapse Multiplier [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.2000 | 0.1900 |
Index annuities including certain GMWB | Minimum | Measurement Input Mortality Multiplier [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.2400 | 0.2400 |
Index annuities including certain GMWB | Minimum | Measurement Input Utilization Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.6000 | 0.8000 |
Index annuities including certain GMWB | Minimum | Measurement Input Options Budget [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0 | 0 |
Index annuities including certain GMWB | Minimum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0001 | 0.0006 |
Index annuities including certain GMWB | Maximum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.5000 | 0.5000 |
Index annuities including certain GMWB | Maximum | Measurement Input Dynamic Lapse Multiplier [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1.8600 | 1.7800 |
Index annuities including certain GMWB | Maximum | Measurement Input Mortality Multiplier [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1.8000 | 1.8000 |
Index annuities including certain GMWB | Maximum | Measurement Input Utilization Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.9500 | 1 |
Index annuities including certain GMWB | Maximum | Measurement Input Options Budget [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0400 | 0.0400 |
Index annuities including certain GMWB | Maximum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0140 | 0.0148 |
Index annuities including certain GMWB | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 6,445 | $ 5,538 |
Indexed Life | Minimum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0 | 0 |
Indexed Life | Minimum | Measurement Input Mortality Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0 | 0 |
Indexed Life | Minimum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0001 | 0.0006 |
Indexed Life | Maximum | Measurement Input Base Lapse Rates [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.3797 | 0.3797 |
Indexed Life | Maximum | Measurement Input Mortality Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 1 | 1 |
Indexed Life | Maximum | Measurement Input, NPA [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0140 | 0.0148 |
Indexed Life | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 765 | $ 649 |
FAIR VALUE MEASUREMENTS (Deta_8
FAIR VALUE MEASUREMENTS (Details - Investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $ 8,418 | $ 6,493 |
Unfunded Commitments | 3,330 | 3,152 |
Direct private equity | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 6,588 | 4,613 |
Unfunded Commitments | $ 3,330 | 3,151 |
Average original expected lives | 10 years | |
Direct private equity | Maximum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Average original expected lives, Increments | 2 years | |
Direct private equity | Minimum [Member] | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Average original expected lives, Increments | 1 year | |
Leveraged buyout | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $ 2,768 | 1,752 |
Unfunded Commitments | 1,798 | 1,960 |
Real assets | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 904 | 908 |
Unfunded Commitments | 487 | 445 |
Venture capital | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 252 | 167 |
Unfunded Commitments | 201 | 171 |
Growth equity | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 914 | 703 |
Unfunded Commitments | 82 | 55 |
Mezzanine | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 534 | 400 |
Unfunded Commitments | 354 | 155 |
Other | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 1,216 | 683 |
Unfunded Commitments | 408 | 365 |
Hedge funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 1,830 | 1,880 |
Unfunded Commitments | 0 | 1 |
Event-driven | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 466 | 411 |
Unfunded Commitments | 0 | 0 |
Long-short | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 432 | 361 |
Unfunded Commitments | 0 | 0 |
Macro | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 516 | 807 |
Unfunded Commitments | 0 | 0 |
Other | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | 416 | 301 |
Unfunded Commitments | $ 0 | $ 1 |
FAIR VALUE MEASUREMENTS (Deta_9
FAIR VALUE MEASUREMENTS (Details - Gains or losses recorded related to the eligible instruments for which we elected the fair value option) - Fair Value Option - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option gain (loss) | $ 1,704 | $ 1,061 | $ 1,456 |
Bonds and equity securities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option gain (loss) | (12) | 552 | 1,046 |
Alternative investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option gain (loss) | 1,650 | 685 | 591 |
Long-term debt | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value option gain (loss) | $ 66 | $ (176) | $ (181) |
FAIR VALUE MEASUREMENTS (Det_10
FAIR VALUE MEASUREMENTS (Details - Difference between fair values and the aggregate contractual principal amounts of mortgage and other loans receivable and long-term borrowings for which the fair value option was elected) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | $ 1,871 | $ 2,097 | |
Long-term debt, Outstanding Principal Amount | [1] | 30,163 | 37,534 |
Fair Value Option | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, Fair Value | 1,871 | 2,097 | |
Long-term debt, Outstanding Principal Amount | 1,405 | 1,479 | |
Long-term debt, Difference | $ 466 | $ 618 | |
[1] | See Note 9 for details of balances associated with variable interest entities. |
FAIR VALUE MEASUREMENTS (Det_11
FAIR VALUE MEASUREMENTS (Details - Assets measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | $ 104 | $ 404 | |
Impairment Charges | 73 | 91 | $ 150 |
Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 104 | 376 | |
Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 28 | |
Level 1 | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Level 1 | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Level 1 | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Level 2 | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Level 2 | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Level 2 | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 0 | |
Level 3 | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 104 | 404 | |
Level 3 | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 104 | 376 | |
Level 3 | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 28 | |
Fair value on a non-recurring basis | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | 6 | 77 | 76 |
Fair value on a non-recurring basis | Other assets | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | $ 67 | $ 14 | $ 74 |
FAIR VALUE MEASUREMENTS (Det_12
FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Assets: | ||||||
Mortgage and other loans receivable | [1] | $ 46,048 | $ 45,562 | |||
Short-term investments | [1] | 13,357 | 18,203 | |||
Cash | 2,198 | [1] | 2,827 | [1] | $ 2,856 | |
Other assets | [1] | 14,351 | 13,122 | |||
Liabilities: | ||||||
Fortitude Re funds withheld payable | 40,771 | 43,060 | ||||
Other liabilities | [1] | 28,704 | 27,122 | |||
Long-term debt and debt of consolidated investment entities | [1] | 30,163 | 37,534 | |||
American International Group, Inc. | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 23,741 | 28,103 | ||||
Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | [1] | 6,422 | 9,431 | |||
Carrying Value | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 46,033 | 45,562 | ||||
Other invested assets | 878 | 843 | ||||
Short-term investments | 8,931 | 12,235 | ||||
Cash | 2,198 | 2,827 | ||||
Other assets | 32 | 223 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 133,043 | 130,435 | ||||
Fortitude Re funds withheld payable | 34,849 | 37,018 | ||||
Other liabilities | 3,704 | 3,695 | ||||
Long-term debt and debt of consolidated investment entities | 21,870 | 26,006 | ||||
Separate account liabilities - investment contracts | 104,126 | 95,610 | ||||
Carrying Value | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 6,422 | 9,431 | ||||
Total Fair Value | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 48,029 | 48,636 | ||||
Other invested assets | 877 | 843 | ||||
Short-term investments | 8,931 | 12,235 | ||||
Cash | 2,198 | 2,827 | ||||
Other assets | 32 | 223 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 143,143 | 144,571 | ||||
Fortitude Re funds withheld payable | 34,849 | 37,018 | ||||
Other liabilities | 3,704 | 3,695 | ||||
Long-term debt and debt of consolidated investment entities | 25,094 | 30,675 | ||||
Separate account liabilities - investment contracts | 104,126 | 95,610 | ||||
Total Fair Value | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 6,390 | 9,711 | ||||
Level 1 | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 0 | 0 | ||||
Other invested assets | 0 | 0 | ||||
Short-term investments | 0 | 0 | ||||
Cash | 2,198 | 2,827 | ||||
Other assets | 21 | 209 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 0 | 0 | ||||
Fortitude Re funds withheld payable | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Long-term debt and debt of consolidated investment entities | 0 | 0 | ||||
Separate account liabilities - investment contracts | 0 | 0 | ||||
Level 1 | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 0 | 0 | ||||
Level 2 | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 82 | 95 | ||||
Other invested assets | 871 | 837 | ||||
Short-term investments | 8,931 | 12,235 | ||||
Cash | 0 | 0 | ||||
Other assets | 11 | 14 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 169 | 214 | ||||
Fortitude Re funds withheld payable | 0 | 0 | ||||
Other liabilities | 3,704 | 3,695 | ||||
Long-term debt and debt of consolidated investment entities | 24,758 | 30,310 | ||||
Separate account liabilities - investment contracts | 104,126 | 95,610 | ||||
Level 2 | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 3,077 | 1,746 | ||||
Level 3 | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 47,947 | 48,541 | ||||
Other invested assets | 6 | 6 | ||||
Short-term investments | 0 | 0 | ||||
Cash | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 142,974 | 144,357 | ||||
Fortitude Re funds withheld payable | 34,849 | 37,018 | ||||
Other liabilities | 0 | 0 | ||||
Long-term debt and debt of consolidated investment entities | 336 | 365 | ||||
Separate account liabilities - investment contracts | 0 | 0 | ||||
Level 3 | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | $ 3,313 | $ 7,965 | ||||
[1] | See Note 9 for details of balances associated with variable interest entities. |
INVESTMENTS (Details - Amortize
INVESTMENTS (Details - Amortized cost or cost and fair value of available for sale securities) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | $ 259,210 | $ 244,337 | |
Available for sale securities, Allowance for Credit Losses | (98) | (186) | |
Available for sale securities, Fair Value | [1] | 277,202 | 271,496 |
Bonds available for sale | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 259,210 | 244,337 | |
Available for sale securities, Allowance for Credit Losses | (98) | (186) | |
Available for sale securities, Gross Unrealized Gains | 19,993 | 28,253 | |
Available for sale securities, Gross Unrealized Losses | (1,903) | (908) | |
Available for sale securities, Fair Value | 277,202 | 271,496 | |
Other details of available for sale securities | |||
Available for sale securities not rated or rated below investment grade | 27,000 | 28,200 | |
Bonds available for sale | U.S. government and government sponsored entities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 7,874 | 3,640 | |
Available for sale securities, Allowance for Credit Losses | 0 | 0 | |
Available for sale securities, Gross Unrealized Gains | 347 | 503 | |
Available for sale securities, Gross Unrealized Losses | (27) | (17) | |
Available for sale securities, Fair Value | 8,194 | 4,126 | |
Bonds available for sale | Obligations of states, municipalities and political subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 12,760 | 13,915 | |
Available for sale securities, Allowance for Credit Losses | 0 | 0 | |
Available for sale securities, Gross Unrealized Gains | 1,782 | 2,216 | |
Available for sale securities, Gross Unrealized Losses | (15) | (7) | |
Available for sale securities, Fair Value | 14,527 | 16,124 | |
Bonds available for sale | Non-U.S. governments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 15,858 | 14,231 | |
Available for sale securities, Allowance for Credit Losses | 0 | (4) | |
Available for sale securities, Gross Unrealized Gains | 719 | 1,181 | |
Available for sale securities, Gross Unrealized Losses | (247) | (63) | |
Available for sale securities, Fair Value | 16,330 | 15,345 | |
Bonds available for sale | Corporate debt | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 163,064 | 150,111 | |
Available for sale securities, Allowance for Credit Losses | (89) | (164) | |
Available for sale securities, Gross Unrealized Gains | 13,892 | 19,905 | |
Available for sale securities, Gross Unrealized Losses | (1,259) | (554) | |
Available for sale securities, Fair Value | 175,608 | 169,298 | |
Bonds available for sale | Mortgage-backed, asset-backed and collateralized | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 59,654 | 62,440 | |
Available for sale securities, Allowance for Credit Losses | (9) | (18) | |
Available for sale securities, Gross Unrealized Gains | 3,253 | 4,448 | |
Available for sale securities, Gross Unrealized Losses | (355) | (267) | |
Available for sale securities, Fair Value | 62,543 | 66,603 | |
Bonds available for sale | Residential mortgage-backed securities (RMBS) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 25,027 | 28,551 | |
Available for sale securities, Allowance for Credit Losses | (9) | (16) | |
Available for sale securities, Gross Unrealized Gains | 2,422 | 3,000 | |
Available for sale securities, Gross Unrealized Losses | (153) | (70) | |
Available for sale securities, Fair Value | 27,287 | 31,465 | |
Bonds available for sale | Commercial mortgage-backed securities (CMBS) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 15,333 | 15,182 | |
Available for sale securities, Allowance for Credit Losses | 0 | (1) | |
Available for sale securities, Gross Unrealized Gains | 555 | 1,023 | |
Available for sale securities, Gross Unrealized Losses | (79) | (71) | |
Available for sale securities, Fair Value | 15,809 | 16,133 | |
Bonds available for sale | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 19,294 | 18,707 | |
Available for sale securities, Allowance for Credit Losses | 0 | (1) | |
Available for sale securities, Gross Unrealized Gains | 276 | 425 | |
Available for sale securities, Gross Unrealized Losses | (123) | (126) | |
Available for sale securities, Fair Value | $ 19,447 | $ 19,005 | |
[1] | See Note 9 for details of balances associated with variable interest entities. |
INVESTMENTS (Details - Securiti
INVESTMENTS (Details - Securities available for sale in a loss position) - Bonds available for sale $ in Millions | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | $ 58,573 | $ 24,504 |
Gross Unrealized Losses, Less than 12 Months | 1,137 | 576 |
Fair Value, 12 Months or More | 12,293 | 5,314 |
Gross Unrealized Losses, 12 Months or More | 689 | 192 |
Fair Value, Total | 70,866 | 29,818 |
Gross Unrealized Losses, Total | $ 1,826 | $ 768 |
Number of securities in an unrealized loss position | item | 15,029 | 5,105 |
Number of individual securities in continuous unrealized loss position for longer than twelve months | item | 2,644 | 949 |
U.S. government and government sponsored entities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | $ 3,696 | $ 649 |
Gross Unrealized Losses, Less than 12 Months | 14 | 17 |
Fair Value, 12 Months or More | 447 | 0 |
Gross Unrealized Losses, 12 Months or More | 13 | 0 |
Fair Value, Total | 4,143 | 649 |
Gross Unrealized Losses, Total | 27 | 17 |
Obligations of states, municipalities and political subdivisions | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 714 | 267 |
Gross Unrealized Losses, Less than 12 Months | 11 | 4 |
Fair Value, 12 Months or More | 57 | 78 |
Gross Unrealized Losses, 12 Months or More | 4 | 3 |
Fair Value, Total | 771 | 345 |
Gross Unrealized Losses, Total | 15 | 7 |
Non-U.S. governments | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 4,644 | 1,287 |
Gross Unrealized Losses, Less than 12 Months | 115 | 28 |
Fair Value, 12 Months or More | 1,324 | 262 |
Gross Unrealized Losses, 12 Months or More | 132 | 33 |
Fair Value, Total | 5,968 | 1,549 |
Gross Unrealized Losses, Total | 247 | 61 |
Corporate debt | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 31,914 | 11,715 |
Gross Unrealized Losses, Less than 12 Months | 720 | 348 |
Fair Value, 12 Months or More | 8,819 | 1,283 |
Gross Unrealized Losses, 12 Months or More | 467 | 81 |
Fair Value, Total | 40,733 | 12,998 |
Gross Unrealized Losses, Total | 1,187 | 429 |
Residential mortgage-backed securities (RMBS) | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 5,362 | 3,486 |
Gross Unrealized Losses, Less than 12 Months | 102 | 40 |
Fair Value, 12 Months or More | 1,154 | 282 |
Gross Unrealized Losses, 12 Months or More | 46 | 18 |
Fair Value, Total | 6,516 | 3,768 |
Gross Unrealized Losses, Total | 148 | 58 |
Commercial mortgage-backed securities (CMBS) | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 3,980 | 1,644 |
Gross Unrealized Losses, Less than 12 Months | 63 | 58 |
Fair Value, 12 Months or More | 153 | 346 |
Gross Unrealized Losses, 12 Months or More | 16 | 12 |
Fair Value, Total | 4,133 | 1,990 |
Gross Unrealized Losses, Total | 79 | 70 |
Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 8,263 | 5,456 |
Gross Unrealized Losses, Less than 12 Months | 112 | 81 |
Fair Value, 12 Months or More | 339 | 3,063 |
Gross Unrealized Losses, 12 Months or More | 11 | 45 |
Fair Value, Total | 8,602 | 8,519 |
Gross Unrealized Losses, Total | $ 123 | $ 126 |
INVESTMENTS (Details - Amorti_2
INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed Maturity Securities Available for Sale, Fair Value, Total | [1] | $ 277,202 | $ 271,496 |
Fixed maturity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Due in one year or less, Amortized Cost Net of Allowance | 7,582 | ||
Due after one year through five years, Amortized Cost Net of Allowance | 48,204 | ||
Due after five years through ten years, Amortized Cost Net of Allowance | 46,218 | ||
Due after ten years, Amortized Cost Net of Allowance | 97,463 | ||
Mortgage-backed, asset-backed and collateralized, Amortized Cost Net of Allowance | 59,645 | ||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 259,112 | ||
Due in one year or less, Fair Value | 7,634 | ||
Due after one year through five years, Fair Value | 49,347 | ||
Due after five years through ten years, Fair Value | 48,587 | ||
Due after ten years, Fair Value | 109,091 | ||
Mortgage-backed, asset-backed and collateralized, Fair Value | 62,543 | ||
Fixed Maturity Securities Available for Sale, Fair Value, Total | $ 277,202 | $ 271,496 | |
[1] | See Note 9 for details of balances associated with variable interest entities. |
INVESTMENTS (Details - Gross re
INVESTMENTS (Details - Gross realized gains and gross realized losses from sales or maturities of available for sale securities) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Aggregate fair value of available for sale securities sold | $ 27,300 | $ 23,000 | $ 22,000 |
Sales of fixed maturity securities | 928 | 1,000 | 320 |
Fortitude | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Sales of fixed maturity securities | 717 | 707 | |
Fixed maturity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Realized Gains | 1,369 | 1,824 | 650 |
Gross Realized Losses | $ 441 | $ 810 | $ 330 |
INVESTMENTS (Details - Value of
INVESTMENTS (Details - Value of other securities measured at fair value based on election of the fair value option) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 7,017 | $ 6,347 |
Other Securities, Percent of Total | 100.00% | 100.00% |
Fixed maturity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 6,278 | $ 5,291 |
Other Securities, Percent of Total | 89.00% | 83.00% |
Fixed maturity securities | U.S. government and government sponsored entities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 1,750 | $ 1,845 |
Other Securities, Percent of Total | 25.00% | 29.00% |
Fixed maturity securities | Obligations of states, municipalities and political subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 97 | $ 0 |
Other Securities, Percent of Total | 1.00% | 0.00% |
Fixed maturity securities | Non-U.S. governments | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 76 | $ 0 |
Other Securities, Percent of Total | 1.00% | 0.00% |
Fixed maturity securities | Corporate debt | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 1,050 | $ 12 |
Other Securities, Percent of Total | 15.00% | 0.00% |
Fixed maturity securities | Mortgage-backed, asset-backed and collateralized | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 3,305 | $ 3,434 |
Other Securities, Percent of Total | 47.00% | 54.00% |
Fixed maturity securities | Residential mortgage-backed securities (RMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 411 | $ 429 |
Other Securities, Percent of Total | 6.00% | 7.00% |
Fixed maturity securities | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 315 | $ 320 |
Other Securities, Percent of Total | 4.00% | 5.00% |
Fixed maturity securities | Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 2,579 | $ 2,685 |
Other Securities, Percent of Total | 37.00% | 42.00% |
Equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 739 | $ 1,056 |
Other Securities, Percent of Total | 11.00% | 17.00% |
INVESTMENTS (Details - Carrying
INVESTMENTS (Details - Carrying amounts of other invested assets) - USD ($) $ in Millions | Jun. 02, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2028 | |
Investments [Line Items] | ||||||
Other invested assets | [1] | $ 15,668 | $ 19,060 | |||
Fortitude | American International Group Inc [Member] | ||||||
Investments [Line Items] | ||||||
Percentage of common stock held after closing of transaction | 3.50% | 3.50% | 3.50% | |||
Alternative investments | ||||||
Investments [Line Items] | ||||||
Other invested assets | $ 10,951 | $ 9,572 | ||||
Investment real estate | ||||||
Investments [Line Items] | ||||||
Other invested assets | 2,727 | 7,930 | ||||
All other investments | ||||||
Investments [Line Items] | ||||||
Other invested assets | 1,990 | 1,558 | ||||
All other investments | Fortitude | ||||||
Investments [Line Items] | ||||||
Other invested assets | 100 | 100 | ||||
Hedge Funds | ||||||
Investments [Line Items] | ||||||
Other invested assets | 2,000 | 2,300 | ||||
Net of accumulated depreciation on investment in real estate | 778 | 756 | ||||
Hedge Fund Fair Value Redemption, Additional Percentage | 62.00% | 38.00% | ||||
Direct private equity | ||||||
Investments [Line Items] | ||||||
Other invested assets | $ 8,900 | 7,000 | ||||
Affordable Housing Partnerships | ||||||
Investments [Line Items] | ||||||
Other invested assets | $ 257 | |||||
[1] | See Note 9 for details of balances associated with variable interest entities. |
INVESTMENTS (Details - Componen
INVESTMENTS (Details - Components of Net investment income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Investment Income [Line Items] | |||
Total investment income | $ 15,134 | $ 14,189 | $ 15,144 |
Investment expenses | 522 | 558 | 525 |
Net investment income | 14,612 | 13,631 | 14,619 |
Fortitude | |||
Net Investment Income [Line Items] | |||
Total investment income | 2,008 | 1,070 | |
Investment expenses | 37 | 17 | |
Net investment income | 1,971 | 1,053 | |
Excluding Fortitude Re funds withheld assets | |||
Net Investment Income [Line Items] | |||
Total investment income | 13,126 | 13,119 | |
Investment expenses | 485 | 541 | |
Net investment income | 12,641 | 12,578 | |
Fixed maturity securities, including short-term investments | |||
Net Investment Income [Line Items] | |||
Total investment income | 10,051 | 10,359 | 10,768 |
Fixed maturity securities, including short-term investments | Fortitude | |||
Net Investment Income [Line Items] | |||
Total investment income | 1,468 | 851 | |
Fixed maturity securities, including short-term investments | Excluding Fortitude Re funds withheld assets | |||
Net Investment Income [Line Items] | |||
Total investment income | 8,583 | 9,508 | |
Other fixed maturity securities | |||
Net Investment Income [Line Items] | |||
Total investment income | (12) | 553 | 1,015 |
Derivative Fair Value Hedge Included In Effectiveness Gain Loss | (49) | 195 | 177 |
Other fixed maturity securities | Fortitude | |||
Net Investment Income [Line Items] | |||
Total investment income | 7 | 13 | |
Other fixed maturity securities | Excluding Fortitude Re funds withheld assets | |||
Net Investment Income [Line Items] | |||
Total investment income | (19) | 540 | |
Equity securities | |||
Net Investment Income [Line Items] | |||
Total investment income | (237) | 200 | 159 |
Equity securities | Fortitude | |||
Net Investment Income [Line Items] | |||
Total investment income | 0 | 0 | |
Equity securities | Excluding Fortitude Re funds withheld assets | |||
Net Investment Income [Line Items] | |||
Total investment income | (237) | 200 | |
Interest on mortgage and other loans | |||
Net Investment Income [Line Items] | |||
Total investment income | 1,952 | 1,989 | 2,030 |
Interest on mortgage and other loans | Fortitude | |||
Net Investment Income [Line Items] | |||
Total investment income | 207 | 106 | |
Interest on mortgage and other loans | Excluding Fortitude Re funds withheld assets | |||
Net Investment Income [Line Items] | |||
Total investment income | 1,745 | 1,883 | |
Alternative investments | |||
Net Investment Income [Line Items] | |||
Total investment income | 2,900 | 1,012 | 1,088 |
Alternative investments | Fortitude | |||
Net Investment Income [Line Items] | |||
Total investment income | 321 | 99 | |
Alternative investments | Excluding Fortitude Re funds withheld assets | |||
Net Investment Income [Line Items] | |||
Total investment income | 2,579 | 913 | |
Real estate | |||
Net Investment Income [Line Items] | |||
Total investment income | 225 | 195 | 304 |
Real estate | Fortitude | |||
Net Investment Income [Line Items] | |||
Total investment income | 0 | 0 | |
Real estate | Excluding Fortitude Re funds withheld assets | |||
Net Investment Income [Line Items] | |||
Total investment income | 225 | 195 | |
Other investments | |||
Net Investment Income [Line Items] | |||
Total investment income | 255 | (119) | (220) |
Derivative Fair Value Hedge Included In Effectiveness Gain Loss | 65 | (162) | $ (161) |
Other investments | Fortitude | |||
Net Investment Income [Line Items] | |||
Total investment income | 5 | 1 | |
Other investments | Excluding Fortitude Re funds withheld assets | |||
Net Investment Income [Line Items] | |||
Total investment income | $ 250 | $ (120) |
INVESTMENTS (Details - Summariz
INVESTMENTS (Details - Summarized financial information of AIG's equity method investees) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | $ 52,057 | $ 43,736 | $ 49,746 |
Net income (loss) attributable to AIG | 9,388 | (5,944) | 3,348 |
Total assets | 596,112 | 586,481 | |
Total liabilities | (527,200) | (519,282) | |
Other Equity Method Investee [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | 31,560 | 13,090 | 8,045 |
Total expenses | (2,241) | (2,897) | (3,115) |
Net income (loss) attributable to AIG | 29,319 | 10,193 | $ 4,930 |
Total assets | 105,837 | 85,083 | |
Total liabilities | (12,779) | (10,462) | |
Equity method investments | $ 5,145 | $ 4,548 |
INVESTMENTS (Details - Compon_2
INVESTMENTS (Details - Components of Net realized capital gains (losses)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Gain (Loss) on Investments [Line Items] | |||
Sales of securities | $ 928 | $ 1,000 | $ 320 |
Other-than-temporary impairments | 0 | 0 | (174) |
Intent to sell | 0 | (3) | 0 |
Change in allowance for credit losses on fixed maturity securities | 26 | (280) | 0 |
Change in allowance for credit losses on loans | 172 | (103) | (46) |
Foreign exchange transactions | 11 | 378 | 227 |
Variable annuity embedded derivatives, net of related hedges | (39) | 166 | (294) |
All other derivatives and hedge accounting | 207 | (921) | (22) |
Other | 1,449 | 156 | 621 |
Total net realized gains (losses) | 2,151 | (2,238) | 632 |
Excluding Fortitude Re funds withheld assets | |||
Gain (Loss) on Investments [Line Items] | |||
Other-than-temporary impairments | 0 | 0 | |
Intent to sell | 0 | (3) | |
Change in allowance for credit losses on fixed maturity securities | 19 | (270) | |
Change in allowance for credit losses on loans | 163 | (105) | |
Foreign exchange transactions | 16 | 365 | |
Variable annuity embedded derivatives, net of related hedges | (39) | 166 | |
All other derivatives and hedge accounting | 179 | (672) | |
Other | 1,202 | 156 | |
Total net realized gains (losses) | 1,751 | (56) | |
Fortitude | |||
Gain (Loss) on Investments [Line Items] | |||
Sales of securities | 717 | 707 | |
Other-than-temporary impairments | 0 | 0 | |
Intent to sell | 0 | 0 | |
Change in allowance for credit losses on fixed maturity securities | 7 | (10) | |
Change in allowance for credit losses on loans | 9 | 2 | |
Foreign exchange transactions | (5) | 13 | |
Variable annuity embedded derivatives, net of related hedges | 0 | 0 | |
All other derivatives and hedge accounting | 28 | (249) | |
Other | 247 | 0 | |
Total net realized gains (losses) | 400 | (2,182) | |
Corporate Headquarters | |||
Gain (Loss) on Investments [Line Items] | |||
Total net realized gains (losses) | 200 | ||
Real Estate Properties | |||
Gain (Loss) on Investments [Line Items] | |||
Total net realized gains (losses) | 300 | ||
Fixed maturity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Sales of securities | 928 | 1,014 | 320 |
Fixed maturity securities | Excluding Fortitude Re funds withheld assets | |||
Gain (Loss) on Investments [Line Items] | |||
Sales of securities | 211 | 307 | |
Fixed maturity securities | Fortitude | |||
Gain (Loss) on Investments [Line Items] | |||
Sales of securities | 717 | 707 | |
Excluding modified coinsurance and funds withheld embedded derivative | |||
Gain (Loss) on Investments [Line Items] | |||
Total net realized gains (losses) | 2,754 | 407 | 632 |
Excluding modified coinsurance and funds withheld embedded derivative | Excluding Fortitude Re funds withheld assets | |||
Gain (Loss) on Investments [Line Items] | |||
Total net realized gains (losses) | 1,751 | (56) | |
Excluding modified coinsurance and funds withheld embedded derivative | Fortitude | |||
Gain (Loss) on Investments [Line Items] | |||
Total net realized gains (losses) | 1,003 | 463 | |
Fortitude Re funds withheld embedded derivative | |||
Gain (Loss) on Investments [Line Items] | |||
Total net realized gains (losses) | (603) | (2,645) | $ 0 |
Fortitude Re funds withheld embedded derivative | Excluding Fortitude Re funds withheld assets | |||
Gain (Loss) on Investments [Line Items] | |||
Total net realized gains (losses) | 0 | 0 | |
Fortitude Re funds withheld embedded derivative | Fortitude | |||
Gain (Loss) on Investments [Line Items] | |||
Total net realized gains (losses) | (603) | $ (2,645) | |
Real Estate Funds | |||
Gain (Loss) on Investments [Line Items] | |||
Total net realized gains (losses) | 1,100 | ||
Affordable Housing Partnerships | |||
Gain (Loss) on Investments [Line Items] | |||
Total net realized gains (losses) | $ 208 |
INVESTMENTS (Details - Schedule
INVESTMENTS (Details - Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Change in unrealized appreciation (depreciation) of investments | $ (9,255) | $ 9,491 | $ 14,175 |
Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date | |||
Net gains (losses) recognized during the period on equity securities | 1,791 | 1,032 | |
Less: Net gains (losses) recognized during the year on equity securities sold during the year | (66) | 23 | |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | 1,857 | 1,009 | |
Fixed maturity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Change in unrealized appreciation (depreciation) of investments | (9,255) | 9,489 | |
Equity securities | |||
Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date | |||
Net gains (losses) recognized during the period on equity securities | (237) | 200 | |
Less: Net gains (losses) recognized during the year on equity securities sold during the year | (180) | (23) | |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | (57) | 223 | |
Other investments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Change in unrealized appreciation (depreciation) of investments | 0 | 2 | |
Other invested assets | |||
Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date | |||
Net gains (losses) recognized during the period on equity securities | 2,028 | 832 | |
Less: Net gains (losses) recognized during the year on equity securities sold during the year | 114 | 46 | |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | $ 1,914 | $ 786 |
INVESTMENTS (Details - Rollforw
INVESTMENTS (Details - Rollforward of changes in allowance for credit losses on available for sale fixed maturity securities by major ivnvestment category) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of period | $ 186 | |
Securities for which allowance for credit losses were not previously recorded | 65 | $ 328 |
Purchases of available for sale debt securities accounted for as PCD assets | 0 | 26 |
Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets | 0 | 1 |
Securities sold during the period | (33) | (31) |
Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intention to sell before recovery amortized cost basis | (91) | (17) |
Write-offs charged against the allowance | (29) | (128) |
Securities available for sale, balance, end of period | 98 | 186 |
Adjusted balance | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of period | 7 | |
Structured | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of period | 17 | 7 |
Securities for which allowance for credit losses were not previously recorded | 9 | 38 |
Purchases of available for sale debt securities accounted for as PCD assets | 0 | 26 |
Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets | 0 | 1 |
Securities sold during the period | (4) | (5) |
Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intention to sell before recovery amortized cost basis | (14) | (50) |
Write-offs charged against the allowance | 0 | 0 |
Securities available for sale, balance, end of period | 8 | 17 |
Non-structured | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of period | 169 | 0 |
Securities for which allowance for credit losses were not previously recorded | 56 | 290 |
Purchases of available for sale debt securities accounted for as PCD assets | 0 | 0 |
Accretion of available for sale debt securities accounted for as purchased credit deteriorated assets | 0 | 0 |
Securities sold during the period | (29) | (26) |
Additional net increases or decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intention to sell before recovery amortized cost basis | (77) | 33 |
Write-offs charged against the allowance | (29) | (128) |
Securities available for sale, balance, end of period | $ 90 | $ 169 |
INVESTMENTS (Details - Rollfo_2
INVESTMENTS (Details - Rollforward of the cumulative credit losses in other-than-temporary impairments recognized in earnings) - Fixed maturity securities $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Other Than Temporary Impairment Credit Losses Recognized in Earnings | |
Balance, beginning of year | $ 0 |
Increases due to: | |
Credit impairments on new securities subject to impairment losses | 136 |
Additional credit impairments on previously impaired securities | 17 |
Reductions due to: | |
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell | (64) |
Accretion on securities previously impaired due to credit | (20) |
Balance, end of year | $ 69 |
INVESTMENTS (Details - Reconcil
INVESTMENTS (Details - Reconciliation of purchase price to unpaid principal balance of securities purchased with credit deterioration) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INVESTMENTS | ||
Unpaid principal balance | $ 0 | $ 644 |
Allowance for expected credit losses at acquisition | 0 | (26) |
Purchase (discount) premium | 0 | (149) |
Purchase price | $ 0 | $ 469 |
INVESTMENTS (Details - Schedu_2
INVESTMENTS (Details - Schedule of purchased credit impaired (PCI) securities) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities purchased with credit deterioration | $ 0 | $ 469 | |
Amortized cost | 259,210 | 244,337 | |
Bonds available for sale | [1] | $ 277,202 | $ 271,496 |
[1] | See Note 9 for details of balances associated with variable interest entities. |
INVESTMENTS (Details - Pledged
INVESTMENTS (Details - Pledged investments) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investments [Line Items] | ||
Fair value of securities collateral pledged | $ 1,839 | $ 5,359 |
Bonds available for sale and short-term investments held in escrow | 514 | 494 |
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements | 13,500 | 11,200 |
FHLBs | ||
Investments [Line Items] | ||
Fair value of fixed maturities securities available for sale | 5,100 | 5,700 |
Amount owned by subsidiaries | 211 | 191 |
Residential loans pledged as collateral | 1,500 | 1,200 |
Secured financing | ||
Investments [Line Items] | ||
Amounts Borrowed Under Repurchase and Securities Lending Agreements | 3,700 | 3,700 |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 259 | 256 |
Securities Lending Agreements, Fair Value of Collateral | 3,324 | 3,380 |
Amounts Loaned under Reverse Repurchase Agreements | 1,900 | 5,400 |
Secured financing | Fixed Maturities [Member] | ||
Investments [Line Items] | ||
Fair value of fixed maturities securities available for sale | 3,583 | 3,636 |
Secured financing | Overnight and continuous | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 176 | 159 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Up to 30 Days | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 61 | 97 |
Securities Lending Agreements, Fair Value of Collateral | 534 | 982 |
Secured financing | 31 to 90 Days | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 22 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 2,790 | 2,398 |
Secured financing | 91 to 364 Days | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | 365 Days or Greater | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 106 | 103 |
Secured financing | Bonds available for sale | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 48 | 63 |
Securities Lending Agreements, Fair Value of Collateral | 43 | |
Secured financing | Bonds available for sale | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 211 | 193 |
Securities Lending Agreements, Fair Value of Collateral | 3,175 | 3,277 |
Secured financing | Bonds available for sale | Overnight and continuous | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | Overnight and continuous | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 48 | 63 |
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | Overnight and continuous | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 128 | 96 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | Up to 30 Days | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | Up to 30 Days | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | Up to 30 Days | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 61 | 97 |
Securities Lending Agreements, Fair Value of Collateral | 534 | 982 |
Secured financing | Bonds available for sale | 31 to 90 Days | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 106 | 103 |
Secured financing | Bonds available for sale | 31 to 90 Days | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 43 | |
Secured financing | Bonds available for sale | 31 to 90 Days | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 22 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 2,641 | 2,295 |
Secured financing | Bonds available for sale | 91 to 364 Days | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | 91 to 364 Days | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | 91 to 364 Days | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | 365 Days or Greater | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Secured financing | Bonds available for sale | 365 Days or Greater | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Bonds available for sale | 365 Days or Greater | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 0 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
GIAs | ||
Investments [Line Items] | ||
Fair value of other bond securities | $ 1,400 | $ 1,500 |
LENDING ACTIVITIES (Details - C
LENDING ACTIVITIES (Details - Composition of mortgages and other loans receivable) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | $ 46,677 | $ 46,376 | |||
Allowance for credit losses | (629) | (814) | $ (438) | $ (397) | |
Mortgage and other loans receivable, net | [1] | 46,048 | 45,562 | ||
Commercial mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | 35,665 | 36,424 | |||
Allowance for credit losses | (545) | (685) | $ (336) | $ (318) | |
Loans on nonacrrual status | 226 | 238 | |||
Accrued interest receivable | 126 | 129 | |||
Off-balance-sheet commitments | $ 71 | $ 79 | |||
Commercial mortgages | Geographic Concentration Risk | Total Assets | California | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of mortgage loans in geographic area | 10.00% | 10.00% | |||
Commercial mortgages | Geographic Concentration Risk | Total Assets | New York | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of mortgage loans in geographic area | 21.00% | 24.00% | |||
Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | $ 5,492 | $ 4,645 | |||
Loans on nonacrrual status | 7 | 14 | |||
Accrued interest receivable | 12 | 14 | |||
Life insurance policy loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | 1,843 | 1,986 | |||
Commercial loans, other loans and notes receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | 3,677 | $ 3,321 | |||
Commercial loans, other loans and notes receivable | Assets held-for-sale | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | $ 15 | ||||
[1] | See Note 9 for details of balances associated with variable interest entities. |
LENDING ACTIVITIES (Details -_2
LENDING ACTIVITIES (Details - Credit quality of commercial mortgages) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | $ 46,677 | $ 46,376 |
Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 2,820 | 2,688 |
Year prior | 2,708 | 6,149 |
Two years prior | 5,897 | 6,448 |
Three years prior | 5,989 | 4,172 |
Four years prior | 3,734 | 4,849 |
Five years prior | 14,517 | 12,118 |
Mortgage and other loans receivable, net | 35,665 | 36,424 |
Less than 65% | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 2,286 | 2,382 |
Year prior | 2,272 | 3,755 |
Two years prior | 4,149 | 3,855 |
Three years prior | 4,815 | 2,565 |
Four years prior | 2,892 | 2,852 |
Five years prior | 9,902 | 8,145 |
Mortgage and other loans receivable, net | 26,316 | 23,554 |
65% to 75% | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 372 | 274 |
Year prior | 410 | 2,330 |
Two years prior | 1,748 | 2,363 |
Three years prior | 1,174 | 1,306 |
Four years prior | 406 | 1,200 |
Five years prior | 3,490 | 2,551 |
Mortgage and other loans receivable, net | 7,600 | 10,024 |
76% to 80% | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 28 |
Year prior | 0 | 45 |
Two years prior | 0 | 30 |
Three years prior | 0 | 0 |
Four years prior | 188 | 70 |
Five years prior | 274 | 515 |
Mortgage and other loans receivable, net | 462 | 688 |
Greater than 80% | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 162 | 4 |
Year prior | 26 | 19 |
Two years prior | 0 | 200 |
Three years prior | 0 | 301 |
Four years prior | 248 | 727 |
Five years prior | 851 | 907 |
Mortgage and other loans receivable, net | 1,287 | 2,158 |
Greater than 1.2x | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 2,245 | 1,914 |
Year prior | 1,662 | 5,596 |
Two years prior | 5,126 | 5,649 |
Three years prior | 3,926 | 3,941 |
Four years prior | 3,557 | 4,592 |
Five years prior | 10,796 | 10,730 |
Mortgage and other loans receivable, net | 27,312 | 32,422 |
1.00X - 1.20X | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 574 | 770 |
Year prior | 1,019 | 467 |
Two years prior | 700 | 456 |
Three years prior | 1,138 | 144 |
Four years prior | 136 | 161 |
Five years prior | 1,929 | 1,106 |
Mortgage and other loans receivable, net | 5,496 | 3,104 |
Less than 1.00X | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 1 | 4 |
Year prior | 27 | 86 |
Two years prior | 71 | 343 |
Three years prior | 925 | 87 |
Four years prior | 41 | 96 |
Five years prior | 1,792 | 282 |
Mortgage and other loans receivable, net | $ 2,857 | $ 898 |
LENDING ACTIVITIES (Details -_3
LENDING ACTIVITIES (Details - Credit quality performance indicators for commercial mortgages) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | $ 35,665 | $ 36,424 | ||
Allowance for credit losses | $ 629 | $ 814 | $ 438 | $ 397 |
Debt Coverage Ratio | 1.9 | 2.2 | ||
Average Loan to Value Ratio | 57.00% | 60.00% | ||
Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | $ 515 | $ 106 | ||
90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 201 | ||
>90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 135 | 208 | ||
In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 35,015 | 35,909 | ||
Apartments | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 14,267 | 13,969 | ||
Allowance for credit losses | 109 | 145 | ||
Apartments | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Apartments | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Apartments | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Apartments | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 14,267 | 13,969 | ||
Offices | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 10,130 | 10,712 | ||
Allowance for credit losses | 247 | 267 | ||
Offices | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 354 | 52 | ||
Offices | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 87 | ||
Offices | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 81 | 67 | ||
Offices | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 9,695 | 10,506 | ||
Retail | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 4,857 | 5,249 | ||
Allowance for credit losses | 103 | 145 | ||
Retail | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 25 | 50 | ||
Retail | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Retail | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 54 | 55 | ||
Retail | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 4,778 | 5,144 | ||
Industrial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 3,858 | 3,766 | ||
Allowance for credit losses | 47 | 53 | ||
Industrial | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Industrial | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Industrial | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Industrial | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 3,858 | 3,766 | ||
Hotel | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 2,121 | 2,268 | ||
Allowance for credit losses | 31 | 65 | ||
Hotel | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 136 | 4 | ||
Hotel | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 114 | ||
Hotel | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 86 | ||
Hotel | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 1,985 | 2,064 | ||
Others | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 432 | 460 | ||
Allowance for credit losses | 8 | 10 | ||
Others | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Others | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Others | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Others | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | $ 432 | $ 460 | ||
Commercial mortgages | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Number of loans in good standing | loan | 636 | 688 | ||
Number of loans restructured | loan | 8 | 5 | ||
Number of loans 90 days or less delinquent | loan | 0 | 3 | ||
Number of loans greater than 90 days delinquent or in process of foreclosure | loan | 5 | 4 | ||
Number of Loans | loan | 649 | 700 | ||
Allowance for credit losses | $ 545 | $ 685 | ||
Percentage of loans that are current as to payments of principal and interest | 98.00% | 99.00% | ||
Percentage restructured | 2.00% | 0.00% | ||
Percentage 90 days or less delinquent | 0.00% | 0.00% | ||
Percentage greater than 90 days delinquent or in foreclosure | 0.00% | 1.00% | ||
Percentage Total | 100.00% | 100.00% | ||
Percentage of loans with allowance for losses | 2.00% | 2.00% |
LENDING ACTIVITIES (Details -_4
LENDING ACTIVITIES (Details - Credit quality of residential mortgages by year of vintage) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | $ 35,665 | $ 36,424 |
Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 2,956 | 1,020 |
Year prior | 964 | 1,034 |
Two years prior | 408 | 421 |
Three years prior | 167 | 675 |
Four years prior | 274 | 776 |
Five years prior | 723 | 719 |
Mortgage and other loans receivable, net | 5,492 | 4,645 |
780 and greater | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 1,601 | 522 |
Year prior | 691 | 619 |
Two years prior | 297 | 283 |
Three years prior | 107 | 469 |
Four years prior | 192 | 539 |
Five years prior | 501 | 484 |
Mortgage and other loans receivable, net | 3,389 | 2,916 |
720 - 779 | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 1,306 | 478 |
Year prior | 230 | 349 |
Two years prior | 86 | 103 |
Three years prior | 44 | 155 |
Four years prior | 58 | 180 |
Five years prior | 154 | 156 |
Mortgage and other loans receivable, net | 1,878 | 1,421 |
660 - 719 | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 48 | 19 |
Year prior | 42 | 61 |
Two years prior | 22 | 28 |
Three years prior | 12 | 42 |
Four years prior | 20 | 51 |
Five years prior | 49 | 58 |
Mortgage and other loans receivable, net | 193 | 259 |
600 - 659 | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 1 | 1 |
Year prior | 1 | 5 |
Two years prior | 2 | 6 |
Three years prior | 3 | 7 |
Four years prior | 2 | 4 |
Five years prior | 12 | 12 |
Mortgage and other loans receivable, net | 21 | 35 |
Less than 600 | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 0 |
Year prior | 0 | 0 |
Two years prior | 1 | 1 |
Three years prior | 1 | 2 |
Four years prior | 2 | 2 |
Five years prior | 7 | 9 |
Mortgage and other loans receivable, net | $ 11 | $ 14 |
LENDING ACTIVITIES (Details - R
LENDING ACTIVITIES (Details - Rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Mortgage and other loan receivables, balance, beginning of year | $ 814 | $ 438 | $ 397 |
Initial allowance upon CECL adoption | 0 | 318 | 0 |
Loans charged off | (2) | (17) | (5) |
Recoveries of loans previously charged off | 0 | 0 | 0 |
Net charge-offs | (2) | (17) | (5) |
Addition to (release of) allowance for loan losses | (164) | 75 | 46 |
Activity of discontinued operations | 19 | 0 | 0 |
Mortgage and other loan receivables, balance, end of period | 629 | 814 | 438 |
Loans modified in a troubled debt restructuring | 345 | 106 | |
Commercial mortgages | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Mortgage and other loan receivables, balance, beginning of year | 685 | 336 | 318 |
Initial allowance upon CECL adoption | 0 | 311 | 0 |
Loans charged off | (2) | (12) | (2) |
Recoveries of loans previously charged off | 0 | 0 | 0 |
Net charge-offs | (2) | (12) | (2) |
Addition to (release of) allowance for loan losses | (138) | 50 | 20 |
Activity of discontinued operations | 0 | 0 | 0 |
Mortgage and other loan receivables, balance, end of period | 545 | 685 | 336 |
Allowance related to individually assessed credit losses | 10 | ||
Commercial mortgage loans | 148 | ||
Off-balance-sheet commitments | 71 | 79 | |
Other Loans | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Mortgage and other loan receivables, balance, beginning of year | 129 | 102 | 79 |
Initial allowance upon CECL adoption | 0 | 7 | 0 |
Loans charged off | 0 | (5) | (3) |
Recoveries of loans previously charged off | 0 | 0 | 0 |
Net charge-offs | 0 | (5) | (3) |
Addition to (release of) allowance for loan losses | (26) | 25 | 26 |
Activity of discontinued operations | 19 | 0 | 0 |
Mortgage and other loan receivables, balance, end of period | $ 84 | $ 129 | $ 102 |
REINSURANCE (Details - Suppleme
REINSURANCE (Details - Supplemental information for loss and benefit reserves, gross and net of ceded reinsurance) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effects of Reinsurance [Line Items] | ||||
Allowance for doubtful accounts on reinsurance assets | $ 382 | $ 375 | $ 151 | |
Supplemental information for loss and benefit reserves | ||||
Liability for unpaid losses and loss adjustment expenses, As Reported | (79,026) | (77,720) | (78,328) | $ (83,639) |
Liability for unpaid losses and loss adjustment expenses, Net of Reinsurance | (43,678) | (43,154) | ||
Future policy benefits for life and accident and health insurance contracts, as reported | (59,950) | (56,878) | ||
Future policy benefits for life and accident and health insurance contracts, Net of Reinsurance | (33,964) | (30,692) | ||
Policyholder contract deposits, As Reported | (156,686) | (154,470) | ||
Policyholder contract deposits, Net of Reinsurance | (152,266) | (149,501) | ||
Reserve for unearned premiums, As Reported | (19,313) | (18,660) | ||
Reserve for unearned premiums, Net of Reinsurance | (15,028) | (14,606) | ||
Other policyholder funds, As Reported | (3,476) | (3,548) | ||
Other policyholder funds, Net of Reinsurance | (2,885) | (2,933) | ||
Reinsurance assets | 70,630 | 70,390 | ||
Allowance for doubtful accounts on reinsurance assets | 333 | 326 | ||
Policy and contract claimes recoverable | 342 | 320 | ||
Reserve for current expected credit losses on liability for unpaid losses and loss adjustment expenses. | 135 | 135 | ||
Reinsurance assets, paid loss recoveries | 3,645 | 3,157 | ||
Reinsurance Recoverables Gross | $ 76,300 | |||
Non-Investment Grade | ||||
Supplemental information for loss and benefit reserves | ||||
Reinsurance recoverables, percent | 7.00% | |||
Non-Investment Grade | Captive Insurers | ||||
Supplemental information for loss and benefit reserves | ||||
Reinsurance recoverables, percent | 71.00% | |||
Investment Grade | ||||
Supplemental information for loss and benefit reserves | ||||
Reinsurance recoverables, percent | 92.00% | |||
Not Rated | Maximum [Member] | ||||
Supplemental information for loss and benefit reserves | ||||
Reinsurance recoverables, percent | 1.00% | |||
General Insurance | ||||
Effects of Reinsurance [Line Items] | ||||
Allowance for doubtful accounts on reinsurance assets | $ 281 | 292 | 111 | |
General Insurance | Investment Grade | ||||
Supplemental information for loss and benefit reserves | ||||
Reinsurance recoverables, percent | 52.00% | |||
Life and Retirement | ||||
Effects of Reinsurance [Line Items] | ||||
Allowance for doubtful accounts on reinsurance assets | $ 101 | 83 | $ 40 | |
Life and Retirement | Non-Investment Grade | Maximum [Member] | ||||
Supplemental information for loss and benefit reserves | ||||
Reinsurance recoverables, percent | 1.00% | |||
Life and Retirement | Investment Grade | ||||
Supplemental information for loss and benefit reserves | ||||
Reinsurance recoverables, percent | 40.00% | |||
Fortitude Holdings | ||||
Supplemental information for loss and benefit reserves | ||||
Allowance for doubtful accounts on reinsurance assets | $ 0 | $ 0 | ||
Fortitude Holdings | Legacy General Insurance Run Off Lines Segment | ||||
Supplemental information for loss and benefit reserves | ||||
Reserves ceded | 3,800 | |||
Fortitude Holdings | Legacy life and retirement run-off lines | ||||
Supplemental information for loss and benefit reserves | ||||
Reserves ceded | $ 29,600 |
REINSURANCE (Details - Short-Du
REINSURANCE (Details - Short-Duration Reinsurance) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Premiums earned: | ||||
Net | $ 31,259 | $ 28,523 | $ 30,561 | |
Short-duration insurance | ||||
Premiums Written | ||||
Direct | 30,910 | 28,521 | 29,338 | |
Assumed | 7,209 | 5,947 | 5,808 | |
Ceded | (11,702) | (11,012) | (9,692) | |
Net Amount | 26,417 | 23,456 | 25,454 | |
Premiums earned: | ||||
Direct | 30,279 | 28,596 | 30,017 | |
Assumed | 6,640 | 5,984 | 6,395 | |
Ceded | (11,301) | (10,435) | (9,526) | |
Net | 25,618 | 24,145 | 26,886 | |
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | 7,200 | 7,700 | 4,700 | |
Ceded loss reserves under retroactive agreements | 16,800 | 18,900 | ||
Deferred Gain (Loss) Retroactive Reinsurance | 1,300 | 1,700 | ||
Effect on income from amortization of the deferred gain | 191 | $ 237 | $ 219 | |
Short-duration insurance | NICO | ||||
Premiums earned: | ||||
Transfer of reserve, percent | 80.00% | |||
Ceded losses paid, percent | 80.00% | |||
Short-duration insurance | Maximum | NICO | ||||
Premiums earned: | ||||
Ceded losses paid in excess, net | 25,000 | |||
Ceded losses paid aggregate limit, net | $ 25,000 |
REINSURANCE (Details - Long-Dur
REINSURANCE (Details - Long-Duration Reinsurance) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | Jul. 01, 2016 | Feb. 07, 2014 | |
Policy Fees | ||||||
Net | $ 3,051 | $ 2,917 | $ 3,015 | |||
Life insurance ratios | ||||||
Assumed insurance as a percent of gross premiums | 1.70% | |||||
New letter of credit | ||||||
Letters of credit | ||||||
Letters of credit obtained on a bilateral basis related to long-duration intercompany reinsurance transactions | $ 250 | |||||
Long-duration insurance in force | ||||||
Premiums earned: | ||||||
Direct | $ 1,280,090 | 1,243,389 | 1,185,771 | |||
Assumed | 192 | 225 | 279 | |||
Ceded | (363,008) | (349,453) | (264,732) | |||
Reinsurance recoveries, which reduced policyholder benefits and claims incurred | 1,300 | 1,100 | 1,000 | |||
Life insurance ratios | ||||||
Long-duration insurance in force ceded | $ 363,008 | $ 349,453 | $ 264,732 | |||
Assumed insurance as a percentage of gross long-duration insurance in force | 0.01% | 0.02% | 0.02% | |||
Assumed insurance as a percent of gross premiums | 33.00% | 19.50% | 5.00% | |||
Long-duration insurance in force | Scenario, Previously Reported [Member] | ||||||
Premiums earned: | ||||||
Ceded | $ (292,500) | |||||
Life insurance ratios | ||||||
Long-duration insurance in force ceded | 292,500 | |||||
Life insurance companies | ||||||
Premiums earned: | ||||||
Direct | $ 4,596 | 4,381 | $ 4,363 | |||
Assumed | 2,265 | 1,058 | 228 | |||
Ceded | (1,220) | (1,061) | (916) | |||
Net | 5,641 | 4,378 | 3,675 | |||
Policy Fees | ||||||
Direct | 3,130 | 2,957 | 3,016 | |||
Assumed | 0 | 0 | 0 | |||
Ceded | (79) | (40) | (1) | |||
Net | $ 3,051 | $ 2,917 | $ 3,015 | |||
Letters of credit | ||||||
Ceded Statutory Reserves | $ 14,000 | $ 5,000 |
REINSURANCE (Details - Summary
REINSURANCE (Details - Summary of the composition of pool of assets) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Effects of Reinsurance [Line Items] | |||
Fixed maturity securities - available for sale, Carrying Value | [1] | $ 277,202 | $ 271,496 |
Fixed maturity securities - fair value option, Carrying Value | [1] | 6,278 | 5,291 |
Loans, Carrying Value | 46,677 | 46,376 | |
Investments, Carrying Value | [1] | 15,668 | 19,060 |
Short-term investments, Carrying Value | [1] | 13,357 | 18,203 |
Derivative assets, net, Carrying Value | 843 | 774 | |
Other, Carrying Value | [1] | 14,351 | 13,122 |
Fixed maturity securities - available for sale, Fair Value | [1] | 277,202 | 271,496 |
Fixed maturity securities - fair value option, Fair Value | [1] | 6,278 | 5,291 |
Investments, Fair Value | 10,504 | 8,422 | |
Derivative assets, net, Fair Value | 5,761 | 6,805 | |
Commercial mortgages | |||
Effects of Reinsurance [Line Items] | |||
Loans, Carrying Value | 35,665 | 36,424 | |
Fortitude Holdings | |||
Effects of Reinsurance [Line Items] | |||
Fixed maturity securities - available for sale, Carrying Value | 31,815 | 36,047 | |
Fixed maturity securities - fair value option, Carrying Value | 1,983 | 200 | |
Short-term investments, Carrying Value | 50 | 34 | |
Funds withheld investment assets, Carrying Value | 39,672 | 41,899 | |
Derivative assets, net, Carrying Value | 81 | (1) | |
Other, Carrying Value | 602 | 604 | |
Total, Carrying Value | 40,355 | 42,502 | |
Fixed maturity securities - available for sale, Fair Value | 31,815 | 36,047 | |
Fixed maturity securities - fair value option, Fair Value | 1,983 | 200 | |
Short-term investments, Fair Value | 50 | 34 | |
Funds withheld investment assets, Fair Value | 40,088 | 42,457 | |
Derivative assets, net, Fair Value | 81 | (1) | |
Other, Fair Value | 602 | 604 | |
Total | 40,771 | 43,060 | |
Change in net unrealized gains (losses), gross | (2,200) | 1,000 | |
Change in net unrealized gains (losses), net of tax | (1,800) | 812 | |
Derivative asset, Fair value of collateral | 389 | 357 | |
Derivative liability, Fair value of collateral | 10 | ||
Fortitude Holdings | Real Estate Funds | |||
Effects of Reinsurance [Line Items] | |||
Investments, Carrying Value | 201 | 358 | |
Investments, Fair Value | 395 | 585 | |
Fortitude Holdings | Direct private equity | |||
Effects of Reinsurance [Line Items] | |||
Investments, Carrying Value | 1,606 | 1,168 | |
Investments, Fair Value | 1,606 | 1,168 | |
Fortitude Holdings | Policy Loans | |||
Effects of Reinsurance [Line Items] | |||
Loans, Carrying Value | 380 | 413 | |
Loans, Fair Value | 380 | 413 | |
Fortitude Holdings | Commercial mortgages | |||
Effects of Reinsurance [Line Items] | |||
Loans, Carrying Value | 3,637 | 3,679 | |
Loans, Fair Value | $ 3,859 | $ 4,010 | |
[1] | See Note 9 for details of balances associated with variable interest entities. |
REINSURANCE (Details - Summar_2
REINSURANCE (Details - Summary of the impact of modco and funds withheld) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effects of Reinsurance [Line Items] | |||
Net investment income | $ 14,612 | $ 13,631 | $ 14,619 |
Net realized gains (losses) | 2,151 | (2,238) | 632 |
Income from continuing operations before income tax benefit | 12,099 | (7,293) | 5,287 |
Income tax expense | 2,176 | (1,460) | 1,166 |
Net income (loss) | $ 9,923 | $ (5,829) | $ 4,169 |
U.S. federal income tax at statutory rate (as a percent) | 21.00% | 21.00% | 21.00% |
Policyholder benefits and losses incurred | $ 24,388 | $ 24,806 | $ 25,402 |
Fortitude | |||
Effects of Reinsurance [Line Items] | |||
Net investment income | 1,971 | 1,053 | |
Net realized gains (losses) | 400 | (2,182) | |
Fortitude Re funds withheld assets | |||
Effects of Reinsurance [Line Items] | |||
Net investment income | 1,971 | 1,053 | 0 |
Net realized gains (losses) | 1,003 | 463 | $ 0 |
Policyholder benefits and losses incurred | 21 | ||
Fortitude Holdings | |||
Effects of Reinsurance [Line Items] | |||
Net underwriting income | 0 | 0 | |
Net investment income | 1,971 | 1,053 | |
Net realized gains (losses) | 400 | (2,182) | |
Income from continuing operations before income tax benefit | 2,371 | (1,129) | |
Income tax expense | 499 | (237) | |
Net income (loss) | 1,872 | (892) | |
Change in unrealized appreciation of all other investments | (1,760) | 812 | |
Comprehensive income | 112 | (80) | |
Fortitude Holdings | Fortitude Re funds withheld assets | |||
Effects of Reinsurance [Line Items] | |||
Net realized gains (losses) | 1,003 | 463 | |
Fortitude Holdings | Fortitude Re funds withheld assets | Embedded derivatives | |||
Effects of Reinsurance [Line Items] | |||
Net realized gains (losses) | $ (603) | $ (2,645) |
REINSURANCE (Details - Rollforw
REINSURANCE (Details - Rollforward of the reinsurance recoverable allowance for credit losses) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, balance, beginning of year | $ 375 | $ 151 |
Initial allowance upon CECL adoption | 0 | 224 |
Current period provision for expected credit losses and disputes | 24 | 9 |
Write-offs charged against the allowance for credit losses and disputes | (17) | (9) |
Reinsurance recoverables, balance, end of period | 382 | 375 |
General Insurance | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, balance, beginning of year | 292 | 111 |
Initial allowance upon CECL adoption | 0 | 202 |
Current period provision for expected credit losses and disputes | 6 | (12) |
Write-offs charged against the allowance for credit losses and disputes | (17) | (9) |
Reinsurance recoverables, balance, end of period | 281 | 292 |
Life and Retirement | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, balance, beginning of year | 83 | 40 |
Initial allowance upon CECL adoption | 0 | 22 |
Current period provision for expected credit losses and disputes | 18 | 21 |
Write-offs charged against the allowance for credit losses and disputes | 0 | 0 |
Reinsurance recoverables, balance, end of period | $ 101 | $ 83 |
REINSURANCE (Details - Narrativ
REINSURANCE (Details - Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables | $ 76,300 | ||
Reinsurance assets, paid loss recoveries | 3,645 | $ 3,157 | |
Reinsurance assets | $ 70,630 | 70,390 | |
Gross reinsurance assets due from reinsurers, percent | 5.00% | ||
Future policy benefits | $ 24,388 | 24,806 | $ 25,402 |
Texas Subsidiary [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance assets | 600 | ||
Secured | Reinsurer Concentration Risk [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables | 51,500 | 54,000 | |
Unsecured | Reinsurer Concentration Risk [Member] | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables | $ 3,100 | $ 2,600 | |
Investment Grade | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables, percent | 92.00% | ||
Non-Investment Grade | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables, percent | 7.00% | ||
Non-Investment Grade | Captive Insurers | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables, percent | 71.00% | ||
Not Rated | Maximum | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables, percent | 1.00% | ||
General Insurance | Investment Grade | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables, percent | 52.00% | ||
Life and Retirement | Investment Grade | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables, percent | 40.00% | ||
Life and Retirement | Non-Investment Grade | Maximum | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables, percent | 1.00% | ||
Fortitude Holdings | |||
Effects of Reinsurance [Line Items] | |||
Maximum purchase price adjustment payable | $ 500 | ||
Benefit recorded related to purchase price adjustment | 21 | ||
Fortitude Holdings | Legacy life and retirement run-off lines | |||
Effects of Reinsurance [Line Items] | |||
Reserves ceded | 29,600 | ||
Fortitude Holdings | Legacy General Insurance Run Off Lines Segment | |||
Effects of Reinsurance [Line Items] | |||
Reserves ceded | $ 3,800 |
DEFERRED POLICY ACQUISITION C_3
DEFERRED POLICY ACQUISITION COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Rollforward of deferred policy acquisition costs | |||
Balance, beginning of year | $ 9,679 | $ 10,890 | $ 12,256 |
Acquisition costs deferred | 4,666 | 4,292 | 5,403 |
Amortization expense | (4,562) | (4,188) | (4,993) |
Change in unrealized appreciation of investments | 773 | (1,116) | (1,758) |
Dispositions | 0 | (298) | 0 |
Other, including foreign exchange | (153) | 99 | (18) |
Balance, end of year | 10,403 | 9,679 | 10,890 |
Value of business acquired | |||
Increase (decrease) in deferred policy acquisition costs due to net unrealized gains and losses on available for sale securities | $ 2 | 2 | 22 |
Percentage of unamortized balance of VOBA expected to be amortized in the next five years | |||
Year one (as a percent) | 11.50% | ||
Year two (as a percent) | 11.50% | ||
Year three (as a percent) | 9.70% | ||
Year four (as a percent) | 9.70% | ||
Year five (as a percent) | 7.10% | ||
Years after five year (as a percentage) | 50.40% | ||
Deferred bonus interest and sales inducement assets | $ 307 | 281 | |
Amortization expense associated with deferred bonus interest and deferred sales inducement assets | 113 | 60 | 79 |
Investment-Oriented Contracts [Member] | |||
Rollforward of deferred policy acquisition costs | |||
Balance, beginning of year | 5,100 | ||
Balance, end of year | 5,800 | 5,100 | |
VOBA | |||
Value of business acquired | |||
Balance, beginning of year | 126 | 317 | 438 |
Amortization expense | (11) | (23) | (171) |
Change in unrealized appreciation (depreciation) of investments | 0 | 20 | (10) |
Dispositions | 0 | (169) | 0 |
Other, including foreign exchange | (4) | (19) | 60 |
Balance, end of year | 111 | 126 | 317 |
Reportable Segments | Life insurance companies | |||
Rollforward of deferred policy acquisition costs | |||
Increase (decrease) in deferred policy acquisition costs due to net unrealized gains and losses on available for sale securities | $ 2,400 | $ 3,100 | $ 2,000 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Assets: | ||||||
Bonds available for sale | [1] | $ 277,202 | $ 271,496 | |||
Other bond securities | [1] | 6,278 | 5,291 | |||
Equity securities | [1] | 739 | 1,056 | |||
Mortgage and other loans receivable | [1] | 46,048 | 45,562 | |||
Other invested assets | [1] | 15,668 | 19,060 | |||
Short-term investments | [1] | 13,357 | 18,203 | |||
Accrued investment income | [1] | 2,239 | 2,271 | |||
Cash | 2,198 | [1] | 2,827 | [1] | $ 2,856 | |
Other | [1] | 14,351 | 13,122 | |||
Total assets | 596,112 | 586,481 | ||||
Liabilities: | ||||||
Long-term debt | [1] | 30,163 | 37,534 | |||
Total liabilities | 527,200 | 519,282 | ||||
Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt | [1] | 6,422 | 9,431 | |||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Repayment of debt | 4,494 | 2,783 | $ 1,698 | |||
Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 10,951 | 9,572 | ||||
Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 2,727 | 7,930 | ||||
Real Estate and Investment Entities | ||||||
Liabilities: | ||||||
Off-balance sheet exposure | 2,200 | 2,400 | ||||
Real Estate and Investment Entities | External | ||||||
Liabilities: | ||||||
Off-balance sheet exposure | 600 | 700 | ||||
Consolidated VIE | ||||||
Assets: | ||||||
Bonds available for sale | 5,543 | 6,089 | ||||
Other bond securities | 1,852 | 2,367 | ||||
Equity securities | 223 | 507 | ||||
Mortgage and other loans receivable | 2,523 | 3,135 | ||||
Short-term investments | 638 | 1,926 | ||||
Accrued investment income | 17 | 38 | ||||
Cash | 96 | 332 | ||||
Other assets | 748 | 534 | ||||
Total assets | 16,914 | 24,553 | ||||
Liabilities: | ||||||
Long-term debt | 6,247 | 8,809 | ||||
Other liabilities | 844 | 564 | ||||
Total liabilities | 7,091 | 9,373 | ||||
Consolidated VIE | Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 3,017 | 2,689 | ||||
Consolidated VIE | Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 2,257 | 6,936 | ||||
Consolidated VIE | Real Estate and Investment Entities | ||||||
Assets: | ||||||
Bonds available for sale | 0 | 0 | ||||
Other bond securities | 0 | 0 | ||||
Equity securities | 223 | 507 | ||||
Mortgage and other loans receivable | 0 | 0 | ||||
Short-term investments | 487 | 365 | ||||
Accrued investment income | 0 | 0 | ||||
Cash | 96 | 129 | ||||
Other assets | 190 | 169 | ||||
Total assets | 6,270 | 7,237 | ||||
Liabilities: | ||||||
Long-term debt | 1,743 | 2,559 | ||||
Other liabilities | 122 | 180 | ||||
Total liabilities | 1,865 | 2,739 | ||||
Consolidated VIE | Real Estate and Investment Entities | Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 3,017 | 2,689 | ||||
Consolidated VIE | Real Estate and Investment Entities | Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 2,257 | 3,378 | ||||
Consolidated VIE | Securitization Vehicles | ||||||
Assets: | ||||||
Bonds available for sale | 5,543 | 6,089 | ||||
Other bond securities | 1,852 | 2,367 | ||||
Equity securities | 0 | 0 | ||||
Mortgage and other loans receivable | 2,523 | 3,135 | ||||
Short-term investments | 151 | 1,534 | ||||
Accrued investment income | 17 | 38 | ||||
Cash | 0 | 0 | ||||
Other assets | 558 | 120 | ||||
Total assets | 10,644 | 13,283 | ||||
Liabilities: | ||||||
Long-term debt | 4,504 | 3,961 | ||||
Other liabilities | 722 | 187 | ||||
Total liabilities | 5,226 | 4,148 | ||||
Consolidated VIE | Securitization Vehicles | Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 0 | 0 | ||||
Consolidated VIE | Securitization Vehicles | Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 0 | 0 | ||||
Consolidated VIE | Affordable Housing Partnerships | ||||||
Assets: | ||||||
Bonds available for sale | 0 | 0 | ||||
Other bond securities | 0 | 0 | ||||
Equity securities | 0 | 0 | ||||
Mortgage and other loans receivable | 0 | 0 | ||||
Short-term investments | 0 | 0 | ||||
Accrued investment income | 0 | 0 | ||||
Cash | 0 | 203 | ||||
Other assets | 0 | 243 | ||||
Total assets | 0 | 4,004 | ||||
Liabilities: | ||||||
Long-term debt | 0 | 2,287 | ||||
Other liabilities | 0 | 187 | ||||
Total liabilities | 0 | 2,474 | ||||
Consolidated VIE | Affordable Housing Partnerships | Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 0 | 0 | ||||
Consolidated VIE | Affordable Housing Partnerships | Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 0 | 3,558 | ||||
Consolidated VIE | Other | ||||||
Assets: | ||||||
Bonds available for sale | 0 | 0 | ||||
Other bond securities | 0 | 0 | ||||
Equity securities | 0 | 0 | ||||
Mortgage and other loans receivable | 0 | 0 | ||||
Short-term investments | 0 | 27 | ||||
Accrued investment income | 0 | 0 | ||||
Cash | 0 | 0 | ||||
Other assets | 0 | 2 | ||||
Total assets | 0 | 29 | ||||
Liabilities: | ||||||
Long-term debt | 0 | 2 | ||||
Other liabilities | 0 | 10 | ||||
Total liabilities | 0 | 12 | ||||
Consolidated VIE | Other | Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 0 | 0 | ||||
Consolidated VIE | Other | Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 0 | 0 | ||||
Unconsolidated VIE | ||||||
Assets: | ||||||
Other invested assets | 7,800 | 6,800 | ||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Total VIE Assets | 459,073 | 326,250 | ||||
Maximum Exposure to Loss, On-Balance Sheet | 7,887 | 6,983 | ||||
Maximum Exposure to Loss, Off-Balance Sheet | 3,976 | 3,823 | ||||
Total maximum exposure to loss | 11,863 | 10,806 | ||||
Unconsolidated VIE | Real Estate and Investment Entities | ||||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Total VIE Assets | 457,335 | 321,716 | ||||
Maximum Exposure to Loss, On-Balance Sheet | 7,650 | 6,420 | ||||
Maximum Exposure to Loss, Off-Balance Sheet | 3,448 | 3,273 | ||||
Total maximum exposure to loss | 11,098 | 9,693 | ||||
Unconsolidated VIE | Affordable Housing Partnerships | ||||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Total VIE Assets | 2,801 | |||||
Maximum Exposure to Loss, On-Balance Sheet | 368 | |||||
Maximum Exposure to Loss, Off-Balance Sheet | 4 | |||||
Total maximum exposure to loss | 372 | |||||
Unconsolidated VIE | Affordable Housing Partnerships | Alternative investments | ||||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Maximum Exposure to Loss, On-Balance Sheet | 257 | |||||
Unconsolidated VIE | Affordable Housing Partnerships | Other loans receivable | ||||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Maximum Exposure to Loss, On-Balance Sheet | 97 | |||||
Unconsolidated VIE | Other | ||||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Total VIE Assets | 1,738 | 1,733 | ||||
Maximum Exposure to Loss, On-Balance Sheet | 237 | 195 | ||||
Maximum Exposure to Loss, Off-Balance Sheet | 528 | 546 | ||||
Total maximum exposure to loss | 765 | $ 741 | ||||
Indirectly wholly owned subsidiary | Securitization Vehicles | Debt of consolidated investments | ||||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Repayment of debt | $ 175 | |||||
[1] | See Note 9 for details of balances associated with variable interest entities. |
DERIVATIVES AND HEDGE ACCOUNT_3
DERIVATIVES AND HEDGE ACCOUNTING (Details - Notional amounts and fair values of derivative instruments) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | $ 136,508,000,000 | $ 148,222,000,000 |
Gross Derivative Assets, Fair Value | 5,761,000,000 | 6,805,000,000 |
Gross Derivative Liabilities, Notional Amount | 65,130,000,000 | 77,471,000,000 |
Gross Derivative Liabilities, Fair Value | 4,454,000,000 | 5,822,000,000 |
Derivative assets, Counterparty netting | (2,779,000,000) | (3,812,000,000) |
Derivative assets, Cash collateral | (2,139,000,000) | (2,219,000,000) |
Total derivative assets on consolidated balance sheet | 843,000,000 | 774,000,000 |
Derivative liabilities, Counterparty netting | (2,779,000,000) | (3,812,000,000) |
Derivative liabilities, Cash collateral | (1,089,000,000) | (1,441,000,000) |
Total derivative liabilities on consolidated balance sheet | 586,000,000 | 569,000,000 |
Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Fair Value | 14,500,000,000 | 15,800,000,000 |
Bifurcated embedded derivatives assets, fair value | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 265,000,000 | 815,000,000 |
Gross Derivative Assets, Fair Value | 5,000,000 | 16,000,000 |
Gross Derivative Liabilities, Notional Amount | 895,000,000 | 356,000,000 |
Gross Derivative Liabilities, Fair Value | 11,000,000 | 11,000,000 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 5,431,000,000 | 3,468,000,000 |
Gross Derivative Assets, Fair Value | 467,000,000 | 256,000,000 |
Gross Derivative Liabilities, Notional Amount | 5,828,000,000 | 7,424,000,000 |
Gross Derivative Liabilities, Fair Value | 197,000,000 | 379,000,000 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 47,499,000,000 | 62,259,000,000 |
Gross Derivative Assets, Fair Value | 3,868,000,000 | 4,621,000,000 |
Gross Derivative Liabilities, Notional Amount | 42,113,000,000 | 48,732,000,000 |
Gross Derivative Liabilities, Fair Value | 3,622,000,000 | 4,425,000,000 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 7,905,000,000 | 9,518,000,000 |
Gross Derivative Assets, Fair Value | 722,000,000 | 766,000,000 |
Gross Derivative Liabilities, Notional Amount | 9,997,000,000 | 12,860,000,000 |
Gross Derivative Liabilities, Fair Value | 524,000,000 | 711,000,000 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 27,423,000,000 | 22,924,000,000 |
Gross Derivative Assets, Fair Value | 681,000,000 | 1,130,000,000 |
Gross Derivative Liabilities, Notional Amount | 5,091,000,000 | 7,076,000,000 |
Gross Derivative Liabilities, Fair Value | 53,000,000 | 223,000,000 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 303,000,000 | 0 |
Gross Derivative Assets, Fair Value | 4,000,000 | 0 |
Gross Derivative Liabilities, Notional Amount | 219,000,000 | 0 |
Gross Derivative Liabilities, Fair Value | 0 | 0 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 3,790,000,000 | 5,797,000,000 |
Gross Derivative Assets, Fair Value | 1,000,000 | 2,000,000 |
Gross Derivative Liabilities, Notional Amount | 936,000,000 | 969,000,000 |
Gross Derivative Liabilities, Fair Value | 47,000,000 | 67,000,000 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 43,892,000,000 | 43,441,000,000 |
Gross Derivative Assets, Fair Value | 13,000,000 | 14,000,000 |
Gross Derivative Liabilities, Notional Amount | 51,000,000 | 54,000,000 |
Gross Derivative Liabilities, Fair Value | 0 | 6,000,000 |
Derivatives not designated as hedging instruments | Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Notional Amount | 97,000,000 | 137,000,000 |
Gross Derivative Liabilities, Fair Value | $ 30,000,000 | $ 44,000,000 |
DERIVATIVES AND HEDGE ACCOUNT_4
DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Billions | Dec. 31, 2021 | Dec. 31, 2020 |
Collateral | ||
Collateral posted to third parties for derivative transactions | $ 2.7 | $ 3 |
Collateral obtained from third parties for derivative transactions | $ 2.4 | $ 2.3 |
DERIVATIVES AND HEDGE ACCOUNT_5
DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships | $ 201 | $ (128) | $ 116 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Interest credited to policyholder account balances | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | (19) | 14 | 16 |
Gain (loss) recognized in earnings on hedged items | 17 | (14) | (16) |
Gains/(losses) recognized in earnings for excluded components | 0 | 0 | 0 |
Net Impact | (2) | 0 | 0 |
Derivatives designated as hedging instruments | Interest rate contracts | Fair value hedging | Net investment income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | 9 | (6) | (1) |
Gain (loss) recognized in earnings on hedged items | (11) | 5 | 1 |
Gains/(losses) recognized in earnings for excluded components | 0 | 0 | 0 |
Net Impact | (2) | (1) | 0 |
Derivatives designated as hedging instruments | Foreign exchange contracts | Fair value hedging | Net realized gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | 210 | (422) | (31) |
Gain (loss) recognized in earnings on hedged items | (210) | 422 | 31 |
Gains/(losses) recognized in earnings for excluded components | 139 | 49 | 91 |
Net Impact | 139 | 49 | 91 |
Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | (365) | (3,336) | (361) |
Derivatives not designated as hedging instruments | Net investment income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | 5 | (8) | (125) |
Derivatives not designated as hedging instruments | Policy fees | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | 61 | 62 | 68 |
Derivatives not designated as hedging instruments | Policyholder benefits and claims incurred | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | (4) | 12 | 12 |
Derivatives not designated as hedging instruments | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | (573) | 1,451 | 1,319 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | 278 | (389) | (25) |
Derivatives not designated as hedging instruments | Equity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | (736) | 211 | (316) |
Derivatives not designated as hedging instruments | Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | (9) | 0 | 0 |
Derivatives not designated as hedging instruments | Commodity contracts | Net realized gains (losses) | Excluding Fortitude Re funds withheld assets | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | 148 | (508) | (316) |
Derivatives not designated as hedging instruments | Commodity contracts | Net realized gains (losses) | Modified Coinsurance And Funds Withheld Assets [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | (575) | (2,894) | 0 |
Derivatives not designated as hedging instruments | Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | (12) | 52 | 61 |
Derivatives not designated as hedging instruments | Other contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | 64 | 61 | 64 |
Derivatives not designated as hedging instruments | Embedded derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) recognized in earnings on hedging derivatives | $ 623 | $ (4,722) | $ (1,464) |
DERIVATIVES AND HEDGE ACCOUNT_6
DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Credit Derivatives [Line Items] | ||
Collateral posted | $ 2,700,000,000 | $ 3,000,000,000 |
Obligation to make payments on embedded credit derivatives | 0 | |
Fair value of hybrid securities | 2,000,000,000 | 2,400,000,000 |
Par value of hybrid securities | 4,600,000,000 | 5,000,000,000 |
Credit Risk Related Contingent Features [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral posted | 239,000,000 | 306,000,000 |
Aggregate fair value of net liability position | 206,000,000 | $ 257,000,000 |
Credit Risk Related Contingent Features [Member] | Standard & Poor's, BBB Rating | Moody's, Baa2 Rating | ||
Credit Derivatives [Line Items] | ||
Additional Collateral Aggregate Fair Value | $ 41,000,000 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details - Goodwill) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill | |||
Goodwill - gross | $ 7,551 | $ 7,515 | $ 7,559 |
Accumulated impairments | (3,477) | (3,477) | (3,477) |
Net goodwill | 4,074 | 4,038 | 4,082 |
Increase (decrease) due to: | |||
Acquisition | 20 | ||
Dispositions | (6) | ||
Other | (18) | 42 | (64) |
Goodwill - gross | 7,533 | 7,551 | 7,515 |
Accumulated impairments | (3,477) | (3,477) | (3,477) |
Net goodwill | 4,056 | 4,074 | 4,038 |
Held for sale | |||
Goodwill | |||
Net goodwill | 98 | ||
Increase (decrease) due to: | |||
Net goodwill | 98 | ||
North America | |||
Goodwill | |||
Goodwill - gross | 3,791 | 3,793 | 3,793 |
Accumulated impairments | (1,145) | (1,145) | (1,145) |
Net goodwill | 2,646 | 2,648 | 2,648 |
Increase (decrease) due to: | |||
Acquisition | 0 | ||
Dispositions | (2) | ||
Other | 0 | 0 | 0 |
Goodwill - gross | 3,791 | 3,791 | 3,793 |
Accumulated impairments | (1,145) | (1,145) | (1,145) |
Net goodwill | 2,646 | 2,646 | 2,648 |
International | |||
Goodwill | |||
Goodwill - gross | 3,456 | 3,424 | 3,378 |
Accumulated impairments | (2,255) | (2,255) | (2,255) |
Net goodwill | 1,201 | 1,169 | 1,123 |
Increase (decrease) due to: | |||
Acquisition | 20 | ||
Dispositions | 0 | ||
Other | (13) | 32 | 26 |
Goodwill - gross | 3,443 | 3,456 | 3,424 |
Accumulated impairments | (2,255) | (2,255) | (2,255) |
Net goodwill | 1,188 | 1,201 | 1,169 |
Life Insurance | |||
Goodwill | |||
Goodwill - gross | 244 | 234 | 311 |
Accumulated impairments | (67) | (67) | (67) |
Net goodwill | 177 | 167 | 244 |
Increase (decrease) due to: | |||
Acquisition | 0 | ||
Dispositions | 0 | ||
Other | (5) | 10 | (77) |
Goodwill - gross | 239 | 244 | 234 |
Accumulated impairments | (67) | (67) | (67) |
Net goodwill | 172 | 177 | 167 |
Other Operations | |||
Goodwill | |||
Goodwill - gross | 60 | 64 | 77 |
Accumulated impairments | (10) | (10) | (10) |
Net goodwill | 50 | 54 | 67 |
Increase (decrease) due to: | |||
Acquisition | 0 | ||
Dispositions | (4) | ||
Other | 0 | 0 | (13) |
Goodwill - gross | 60 | 60 | 64 |
Accumulated impairments | (10) | (10) | (10) |
Net goodwill | $ 50 | $ 50 | $ 54 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Details - Intangible assets) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets [Line Items] | |||
Other intangibles assets, beginning of year | $ 319 | $ 333 | $ 360 |
Dispositions | (4) | ||
Amortization | (8) | (9) | (8) |
Other | (11) | (1) | (19) |
Other intangibles assets, end of year | $ 300 | 319 | 333 |
Intangible Assets, Amortized Percentage, Year One | 9.90% | ||
Intangible Assets, Amortized Percentage, Year Two | 9.70% | ||
Intangible Assets, Amortized Percentage, Year Three | 9.40% | ||
Intangible Assets, Amortized Percentage, Year Four | 9.20% | ||
Intangible Assets, Amortized Percentage, Year Five | 8.40% | ||
Intangible Assets, Amortized Percentage, After Year Five | 53.40% | ||
Value of Distribution Network Acquired | |||
Intangible Assets [Line Items] | |||
Value of distribution network acquried, beginning of year | $ 497 | 536 | 569 |
Amortization | (40) | (40) | (39) |
Other | 1 | 1 | 6 |
Value of distribution network acquried, end of year | 458 | 497 | 536 |
General Insurance | North America | |||
Intangible Assets [Line Items] | |||
Other intangibles assets, beginning of year | 79 | 82 | 86 |
Dispositions | 0 | ||
Amortization | (2) | (2) | (1) |
Other | (10) | (1) | (3) |
Other intangibles assets, end of year | 67 | 79 | 82 |
General Insurance | North America | Value of Distribution Network Acquired | |||
Intangible Assets [Line Items] | |||
Value of distribution network acquried, beginning of year | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Value of distribution network acquried, end of year | 0 | 0 | 0 |
General Insurance | International | |||
Intangible Assets [Line Items] | |||
Other intangibles assets, beginning of year | 210 | 211 | 212 |
Dispositions | 0 | ||
Amortization | 0 | (1) | (1) |
Other | (1) | 0 | 0 |
Other intangibles assets, end of year | 209 | 210 | 211 |
General Insurance | International | Value of Distribution Network Acquired | |||
Intangible Assets [Line Items] | |||
Value of distribution network acquried, beginning of year | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Value of distribution network acquried, end of year | 0 | 0 | 0 |
Life Insurance | |||
Intangible Assets [Line Items] | |||
Other intangibles assets, beginning of year | 22 | 24 | 46 |
Dispositions | 0 | ||
Amortization | (4) | (4) | (4) |
Other | (1) | 2 | (18) |
Other intangibles assets, end of year | 17 | 22 | 24 |
Life Insurance | Value of Distribution Network Acquired | |||
Intangible Assets [Line Items] | |||
Value of distribution network acquried, beginning of year | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Value of distribution network acquried, end of year | 0 | 0 | 0 |
Other Operations | |||
Intangible Assets [Line Items] | |||
Other intangibles assets, beginning of year | 8 | 16 | 16 |
Dispositions | (4) | ||
Amortization | (2) | (2) | (2) |
Other | 1 | (2) | 2 |
Other intangibles assets, end of year | 7 | 8 | 16 |
Other Operations | Value of Distribution Network Acquired | |||
Intangible Assets [Line Items] | |||
Value of distribution network acquried, beginning of year | 497 | 536 | 569 |
Amortization | (40) | (40) | (39) |
Other | 1 | 1 | 6 |
Value of distribution network acquried, end of year | $ 458 | $ 497 | $ 536 |
INSURANCE LIABILITIES (Details
INSURANCE LIABILITIES (Details - Liability for Unpaid Losses and Loss Adjustment Expenses) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Collateral Held For Deductible Recoverable Amounts | $ 8,600 | $ 9,200 | |
Allowance for credit losses for unsecured reinsurance recoverable | 14 | 14 | |
Gross loss reserves before reinsurance and discount, net of contractual deductible recoverable amounts due from policyholders | 12,300 | 12,600 | |
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense: | |||
Liability for unpaid loss and loss adjustment expenses, beginning of period | 77,720 | 78,328 | $ 83,639 |
Reinsurance recoverable, balance at the beginning of the period | (34,431) | (31,069) | (31,690) |
Initial allowance upon CECL adoption | 0 | 164 | 0 |
Net Liability for unpaid loss and loss adjustment expenses, beginning of period | 43,289 | 47,259 | 51,949 |
Losses and loss adjustment expenses incurred | |||
Current year | 16,434 | 16,928 | 17,596 |
Prior years, excluding discount and amortization of deferred gain | (171) | (90) | (340) |
Prior years, discount charge (benefit) | (131) | 587 | 1,063 |
Prior years, amortization of deferred gain on retroactive reinsurance | (190) | (237) | (219) |
Total losses and loss adjustment expenses incurred | 15,942 | 17,188 | 18,100 |
Losses and loss adjustment expenses paid | |||
Current year | (3,868) | (4,062) | (4,894) |
Prior years | (11,503) | (14,603) | (18,020) |
Total losses and loss adjustment expenses paid | (15,371) | (18,665) | (22,914) |
Other changes: | |||
Foreign exchange effect | (593) | 815 | (6) |
Allowance for credit losses | 0 | (15) | 0 |
Retroactive reinsurance adjustment (net of discount) | 546 | 361 | 130 |
Fortitude sale | 0 | (3,818) | 0 |
Total other changes | (47) | (2,657) | 124 |
Net liability for unpaid losses and loss adjustment expenses, end of period | 43,813 | 43,289 | 47,259 |
Reinsurance recoverable, balance at the end of the period | 35,213 | 34,431 | 31,069 |
Total, balance at the end of period | 79,026 | 77,720 | 78,328 |
Change in discount on loss reserves ceded under retroactive reinsurance | (42) | 340 | 469 |
Adjusted balance | |||
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense: | |||
Net Liability for unpaid loss and loss adjustment expenses, beginning of period | 47,423 | ||
Other changes: | |||
Net liability for unpaid losses and loss adjustment expenses, end of period | 47,423 | ||
U.S. Asbestos | NICO | |||
Losses and loss adjustment expenses incurred | |||
Prior years, discount charge (benefit) | 53 | 41 | 27 |
U.S. Workers Compensation | |||
Losses and loss adjustment expenses incurred | |||
Prior years, excluding discount and amortization of deferred gain | (617) | (367) | (699) |
U.S. Personal Insurance | |||
Losses and loss adjustment expenses incurred | |||
Prior years, excluding discount and amortization of deferred gain | (412) | 94 | (96) |
Europe Property and Special Risks | |||
Losses and loss adjustment expenses incurred | |||
Prior years, excluding discount and amortization of deferred gain | $ (118) | $ (155) | $ (108) |
INSURANCE LIABILITIES (Detail_2
INSURANCE LIABILITIES (Details - Reconciliation of the Net Incurred and Paid Claims Development) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below | $ 43,813 | $ 43,289 | $ 47,259 | $ 51,949 |
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below | 35,213 | 34,431 | 31,069 | 31,690 |
Gross liability for unpaid losses and loss adjustment expenses | 79,026 | $ 77,720 | $ 78,328 | $ 83,639 |
Reinsurance recoverables | 76,300 | |||
Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below | 36,553 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below | 25,936 | |||
Gross liability for unpaid losses and loss adjustment expenses | 62,489 | |||
U.S. Workers Compensation | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below | 4,158 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below | 6,169 | |||
Gross liability for unpaid losses and loss adjustment expenses | 10,327 | |||
U.S. Excess Casualty | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below | 3,850 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below | 4,195 | |||
Gross liability for unpaid losses and loss adjustment expenses | 8,045 | |||
U.S. Other Casualty | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below | 3,805 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below | 4,191 | |||
Gross liability for unpaid losses and loss adjustment expenses | 7,996 | |||
U.S. Financial Lines | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below | 5,356 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below | 1,893 | |||
Gross liability for unpaid losses and loss adjustment expenses | 7,249 | |||
U.S. Property and Specialty Risks | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below | 6,615 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below | 3,587 | |||
Gross liability for unpaid losses and loss adjustment expenses | 10,202 | |||
U.S. Personal Insurance | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below | 1,001 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below | 2,198 | |||
Gross liability for unpaid losses and loss adjustment expenses | 3,199 | |||
UK/Europe Casualty and Financial Lines | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below | 7,175 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below | 1,603 | |||
Gross liability for unpaid losses and loss adjustment expenses | 8,778 | |||
UK/Europe Property and Special Risks | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below | 2,631 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below | 1,492 | |||
Gross liability for unpaid losses and loss adjustment expenses | 4,123 | |||
UK/Europe and Japan Personal Insurance | Reportable Segments | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below | 1,962 | |||
Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below | 608 | |||
Gross liability for unpaid losses and loss adjustment expenses | 2,570 | |||
Reconciling Items | Discount On Workers Compensation Lines | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Gross liability for unpaid losses and loss adjustment expenses | (1,829) | |||
Reconciling Items | Other Product Lines | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below | 6,500 | |||
Gross liability for unpaid losses and loss adjustment expenses | 15,561 | |||
Reinsurance recoverables | 9,100 | |||
Reconciling Items | Unallocated Loss Adjustment Expenses | ||||
Liability For Claims And Claims Adjustment Expense [Line Items] | ||||
Gross liability for unpaid losses and loss adjustment expenses | $ 2,805 |
INSURANCE LIABILITIES (Detail_3
INSURANCE LIABILITIES (Details - Undiscounted, Incurred and Paid Losses and Allocated Loss Adjustment Expenses) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Claims Development [Line Items] | ||||||||||
Prior Year Development | $ 78 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (171) | $ (90) | $ (340) | |||||||
Liabilities for losses and loss adjustment expenses, net of reinsurance | 43,813 | 43,289 | 47,259 | $ 51,949 | ||||||
U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 12,065 | |||||||||
Prior Year Development | (403) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (617) | (367) | (699) | |||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (5,256) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 10,253 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 7,286 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | 4,635 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 9,414 | |||||||||
U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 214 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 126 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (3,570) | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | (98) | |||||||||
U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 10,185 | |||||||||
Prior Year Development | 81 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 51 | (149) | 76 | |||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (2,990) | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 5,541 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | 2,196 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 6,840 | |||||||||
U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 30 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 129 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (1,680) | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 79 | |||||||||
U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 13,560 | |||||||||
Prior Year Development | 74 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | (141) | 168 | |||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1,754) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 12,629 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 9,436 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | 1,435 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 5,559 | |||||||||
U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 75 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 177 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (1,000) | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 47 | |||||||||
U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 18,176 | |||||||||
Prior Year Development | 564 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 649 | 479 | 463 | |||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (760) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 17,272 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 12,198 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | 138 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 6,116 | |||||||||
U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (85) | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 326 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (182) | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 15 | |||||||||
U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 34,934 | |||||||||
Prior Year Development | 204 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 172 | (80) | (204) | |||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (304) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 34,709 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 28,355 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | 340 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 6,919 | |||||||||
U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 32 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 47 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (126) | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 7 | |||||||||
U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 15,656 | |||||||||
Prior Year Development | (411) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (412) | 94 | (96) | |||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (11) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 15,644 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 14,582 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (62) | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 1,012 | |||||||||
U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 1 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 6 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (5) | |||||||||
UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 13,716 | |||||||||
Prior Year Development | 210 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 210 | 258 | 161 | |||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 7,339 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | 798 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 7,175 | |||||||||
UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 13,781 | |||||||||
Prior Year Development | (118) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (118) | (155) | (108) | |||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 11,204 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | 54 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 2,631 | |||||||||
UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 25,866 | |||||||||
Prior Year Development | (173) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (173) | (39) | (119) | |||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 23,950 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | 46 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 1,962 | |||||||||
Other Operations Run-Off | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 86 | |||||||||
All Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (36) | |||||||||
Prior to 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Reserve strengthening charges | (569) | (457) | (266) | |||||||
Prior to 2012 | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (31) | |||||||||
Reserve strengthening charges | (365) | (87) | (210) | |||||||
Prior to 2012 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 334 | |||||||||
Prior to 2012 | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (112) | |||||||||
Reserve strengthening charges | (84) | (237) | 54 | |||||||
Prior to 2012 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (28) | |||||||||
Prior to 2012 | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (46) | |||||||||
Reserve strengthening charges | (17) | (40) | (170) | |||||||
Prior to 2012 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (29) | |||||||||
Prior to 2012 | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (63) | |||||||||
Reserve strengthening charges | (20) | 25 | 11 | |||||||
Prior to 2012 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (43) | |||||||||
Prior to 2012 | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 4 | |||||||||
Reserve strengthening charges | (10) | (6) | (3) | |||||||
Prior to 2012 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 14 | |||||||||
Prior to 2012 | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 4 | |||||||||
Reserve strengthening charges | 3 | 3 | 1 | |||||||
Prior to 2012 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 1 | |||||||||
Prior to 2012 | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Reserve strengthening charges | (50) | 6 | 9 | |||||||
Prior to 2012 | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Reserve strengthening charges | (13) | 0 | (28) | |||||||
Prior to 2012 | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Reserve strengthening charges | (10) | 3 | 0 | |||||||
Prior to 2012 | Other Operations Run-Off | ||||||||||
Claims Development [Line Items] | ||||||||||
Reserve strengthening charges | (10) | 4 | (46) | |||||||
Prior to 2012 | All Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Reserve strengthening charges | 7 | (128) | 116 | |||||||
Total | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (302) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (280) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1,812) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 10,253 | 9,958 | 9,549 | 9,067 | $ 8,032 | $ 7,208 | ||||
Total | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (22) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1,812) | (1,790) | (1,869) | (1,940) | (2,171) | (2,216) | ||||
Total | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 101 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 122 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1,439) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 8,746 | 8,367 | 7,744 | 7,101 | 6,017 | 4,937 | ||||
Total | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (21) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1,439) | (1,418) | (1,480) | (1,493) | (1,412) | (1,544) | ||||
Total | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 92 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 35 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (931) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 12,629 | 11,742 | 11,327 | 9,913 | 9,153 | 8,504 | ||||
Total | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 57 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (931) | (988) | (955) | (992) | (1,222) | (1,060) | ||||
Total | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 567 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 624 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (904) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 17,272 | 15,275 | 13,753 | 11,856 | 9,914 | 8,115 | ||||
Total | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (57) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (904) | (847) | (733) | (712) | (720) | (745) | ||||
Total | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 206 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 195 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (225) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 34,709 | 30,949 | 26,518 | 23,945 | 20,777 | 15,410 | ||||
Total | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 11 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (225) | (236) | (234) | (197) | (222) | (262) | ||||
Total | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (415) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (415) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (12) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 15,644 | 15,311 | 14,267 | 12,768 | 10,315 | 8,438 | ||||
Total | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (12) | (12) | (12) | (27) | (36) | (27) | ||||
Total | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 260 | |||||||||
Total | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (105) | |||||||||
Total | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (163) | |||||||||
2012 | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,218 | 2,224 | 2,247 | 2,259 | 2,308 | 2,334 | $ 2,260 | $ 2,286 | $ 2,194 | $ 2,382 |
Prior Year Development | 12 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (6) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 207 | |||||||||
Cumulative Number of Reported Claims | item | 72,021 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (380) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (192) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,838 | 1,826 | 1,804 | 1,793 | 1,814 | 1,819 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 15 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,763 | 1,719 | 1,669 | 1,632 | 1,563 | 1,440 | 1,272 | 1,089 | 804 | 415 |
Paid Impact of Adverse Development Reinsurance Agreement | (33) | |||||||||
2012 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 18 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (380) | (398) | (443) | (466) | (494) | (515) | ||||
2012 | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,428 | 1,390 | 1,502 | 1,558 | 1,486 | 1,537 | 1,488 | 1,242 | 1,403 | 1,607 |
Prior Year Development | (5) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 38 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 201 | |||||||||
Cumulative Number of Reported Claims | item | 3,844 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (296) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (154) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,132 | 1,137 | 1,214 | 1,254 | 1,163 | 1,175 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 47 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,111 | 1,090 | 1,121 | 1,022 | 887 | 649 | 495 | 288 | 106 | 3 |
Paid Impact of Adverse Development Reinsurance Agreement | (24) | |||||||||
2012 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (43) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (296) | (253) | (288) | (304) | (323) | (362) | ||||
2012 | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,338 | 2,321 | 2,328 | 2,343 | 2,407 | 2,352 | 2,203 | 2,193 | 2,139 | 1,986 |
Prior Year Development | (1) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 17 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 138 | |||||||||
Cumulative Number of Reported Claims | item | 44,226 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (204) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (110) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,134 | 2,135 | 2,159 | 2,175 | 2,197 | 2,189 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 28 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,130 | 2,101 | 2,053 | 2,009 | 1,869 | 1,677 | 1,385 | 1,042 | 739 | 411 |
Paid Impact of Adverse Development Reinsurance Agreement | (23) | |||||||||
2012 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (18) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (204) | (186) | (169) | (168) | (210) | (163) | ||||
2012 | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,067 | 2,082 | 2,077 | 2,015 | 1,990 | 1,988 | 1,907 | 1,800 | 1,763 | 1,592 |
Prior Year Development | 2 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (15) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 63 | |||||||||
Cumulative Number of Reported Claims | 20,094 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (117) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (52) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,950 | 1,948 | 1,962 | 1,925 | 1,907 | 1,906 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 11 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,925 | 1,904 | 1,859 | 1,687 | 1,622 | 1,494 | 1,250 | 812 | 403 | 73 |
Paid Impact of Adverse Development Reinsurance Agreement | (19) | |||||||||
2012 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 17 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (117) | (134) | (115) | (90) | (83) | (82) | ||||
2012 | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 4,272 | 4,282 | 4,285 | 4,301 | 4,319 | 4,327 | 4,215 | 4,257 | 4,276 | 4,166 |
Prior Year Development | (3) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (10) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 39 | |||||||||
Cumulative Number of Reported Claims | item | 48,478 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (16) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (6) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 4,256 | 4,259 | 4,259 | 4,282 | 4,294 | 4,300 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 33 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 4,204 | 4,195 | 4,180 | 4,146 | 4,114 | 3,985 | 3,768 | 3,404 | 2,709 | 840 |
Paid Impact of Adverse Development Reinsurance Agreement | (5) | |||||||||
2012 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 7 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (16) | (23) | (26) | (19) | (25) | (27) | ||||
2012 | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,100 | 2,101 | 2,099 | 2,095 | 2,094 | 2,077 | 2,083 | 2,109 | 2,128 | 2,208 |
Prior Year Development | (1) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 0 | |||||||||
Cumulative Number of Reported Claims | item | 404,039 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (1) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,099 | 2,100 | 2,098 | 2,093 | 2,091 | 2,088 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 0 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,099 | 2,098 | 2,095 | 2,085 | 2,079 | 2,065 | 2,035 | 1,996 | 1,936 | 1,238 |
Paid Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||
2012 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1) | (1) | (1) | (2) | (3) | 11 | ||||
2012 | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,246 | 1,240 | 1,226 | 1,240 | 1,175 | 1,198 | 1,136 | 1,060 | 1,095 | 1,116 |
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 6 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 38 | |||||||||
Cumulative Number of Reported Claims | item | 141,043 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,079 | 1,056 | 1,026 | 965 | 861 | 769 | 636 | 456 | 311 | 108 |
2012 | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,104 | 1,103 | 1,096 | 1,115 | 1,130 | 1,125 | 1,144 | 1,160 | 1,230 | 1,336 |
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 1 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 6 | |||||||||
Cumulative Number of Reported Claims | item | 40,170 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,085 | 1,081 | 1,080 | 1,073 | 1,064 | 1,038 | 991 | 922 | 730 | 281 |
2012 | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,812 | 2,813 | 2,814 | 2,815 | 2,818 | 2,828 | 2,819 | 2,834 | 2,853 | 2,871 |
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1 | |||||||||
Cumulative Number of Reported Claims | item | 1,730,022 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,802 | 2,798 | 2,793 | 2,785 | 2,768 | 2,739 | 2,682 | 2,576 | 2,348 | $ 1,603 |
2013 | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,877 | 1,886 | 1,916 | 1,974 | 2,032 | 2,060 | 1,950 | 1,880 | 1,932 | |
Prior Year Development | (16) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (9) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 190 | |||||||||
Cumulative Number of Reported Claims | item | 48,167 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (373) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (177) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,504 | 1,520 | 1,458 | 1,481 | 1,494 | 1,500 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 13 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,422 | 1,372 | 1,335 | 1,287 | 1,214 | 1,067 | 879 | 619 | 282 | |
Paid Impact of Adverse Development Reinsurance Agreement | (38) | |||||||||
2013 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (7) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (373) | (366) | (458) | (493) | (538) | (560) | ||||
2013 | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,303 | 1,316 | 1,292 | 1,282 | 1,241 | 1,308 | 1,169 | 1,035 | 1,123 | |
Prior Year Development | 0 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (13) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 224 | |||||||||
Cumulative Number of Reported Claims | item | 3,315 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (333) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (182) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 970 | 970 | 1,032 | 981 | 932 | 935 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 42 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 903 | 882 | 819 | 705 | 578 | 387 | 207 | 105 | 15 | |
Paid Impact of Adverse Development Reinsurance Agreement | (21) | |||||||||
2013 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 13 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (333) | (346) | (260) | (301) | (309) | (373) | ||||
2013 | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,178 | 2,196 | 2,211 | 2,164 | 2,185 | 2,148 | 1,912 | 1,729 | 1,653 | |
Prior Year Development | 6 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (18) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 194 | |||||||||
Cumulative Number of Reported Claims | item | 40,126 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (252) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (165) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,926 | 1,920 | 1,948 | 1,929 | 1,960 | 1,948 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 29 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,900 | 1,885 | 1,809 | 1,688 | 1,485 | 1,248 | 962 | 594 | 169 | |
Paid Impact of Adverse Development Reinsurance Agreement | (16) | |||||||||
2013 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 24 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (252) | (276) | (263) | (235) | (225) | (200) | ||||
2013 | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,542 | 1,550 | 1,509 | 1,497 | 1,555 | 1,613 | 1,670 | 1,719 | 1,790 | |
Prior Year Development | 13 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (8) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 35 | |||||||||
Cumulative Number of Reported Claims | 19,150 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (127) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (32) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,415 | 1,402 | 1,409 | 1,408 | 1,429 | 1,442 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 3 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,440 | 1,362 | 1,314 | 1,235 | 1,139 | 945 | 682 | 327 | 41 | |
Paid Impact of Adverse Development Reinsurance Agreement | (63) | |||||||||
2013 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 21 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (127) | (148) | (100) | (89) | (126) | (171) | ||||
2013 | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,422 | 2,433 | 2,440 | 2,449 | 2,447 | 2,434 | 2,389 | 2,531 | 2,528 | |
Prior Year Development | (7) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (11) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 27 | |||||||||
Cumulative Number of Reported Claims | item | 49,990 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (32) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (16) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,390 | 2,397 | 2,402 | 2,422 | 2,409 | 2,407 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 11 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,355 | 2,345 | 2,326 | 2,301 | 2,189 | 2,042 | 1,849 | 1,571 | 734 | |
Paid Impact of Adverse Development Reinsurance Agreement | (5) | |||||||||
2013 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 4 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (32) | (36) | (38) | (27) | (38) | (27) | ||||
2013 | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,777 | 1,778 | 1,777 | 1,776 | 1,780 | 1,782 | 1,803 | 1,816 | 1,887 | |
Prior Year Development | 0 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1 | |||||||||
Cumulative Number of Reported Claims | item | 335,374 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (1) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,776 | 1,776 | 1,776 | 1,774 | 1,774 | 1,774 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 0 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,775 | 1,774 | 1,772 | 1,766 | 1,759 | 1,744 | 1,705 | 1,634 | 1,109 | |
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2013 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 1 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (1) | (2) | (1) | (2) | (6) | (8) | ||||
2013 | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,212 | 1,218 | 1,194 | 1,149 | 1,075 | 1,069 | 1,087 | 1,114 | 1,068 | |
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (6) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 63 | |||||||||
Cumulative Number of Reported Claims | item | 109,088 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,040 | 1,007 | 957 | 875 | 756 | 637 | 499 | 347 | 92 | |
2013 | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,246 | 1,247 | 1,256 | 1,274 | 1,283 | 1,298 | 1,319 | 1,430 | 1,438 | |
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 2 | |||||||||
Cumulative Number of Reported Claims | item | 40,053 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,219 | 1,217 | 1,211 | 1,200 | 1,179 | 1,129 | 1,053 | 825 | 336 | |
2013 | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,671 | 2,673 | 2,674 | 2,677 | 2,681 | 2,686 | 2,686 | 2,721 | 2,720 | |
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (2) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 3 | |||||||||
Cumulative Number of Reported Claims | item | 1,736,664 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,663 | 2,657 | 2,650 | 2,638 | 2,607 | 2,551 | 2,445 | 2,229 | $ 1,492 | |
2014 | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,637 | 1,679 | 1,709 | 1,794 | 1,862 | 1,866 | 1,764 | 1,729 | ||
Prior Year Development | (52) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (42) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 292 | |||||||||
Cumulative Number of Reported Claims | item | 40,776 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (466) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (269) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,171 | 1,223 | 1,329 | 1,309 | 1,310 | 1,311 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 23 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,180 | 1,137 | 1,096 | 1,030 | 930 | 786 | 558 | 231 | ||
Paid Impact of Adverse Development Reinsurance Agreement | (31) | |||||||||
2014 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (10) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (466) | (456) | (380) | (485) | (552) | (555) | ||||
2014 | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,269 | 1,248 | 1,283 | 1,339 | 1,260 | 1,275 | 1,069 | 938 | ||
Prior Year Development | 37 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 21 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 288 | |||||||||
Cumulative Number of Reported Claims | item | 2,839 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (320) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (155) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 949 | 912 | 844 | 915 | 905 | 902 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 133 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 839 | 815 | 703 | 590 | 444 | 240 | 77 | 3 | ||
Paid Impact of Adverse Development Reinsurance Agreement | (28) | |||||||||
2014 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 16 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (320) | (336) | (439) | (424) | (355) | (373) | ||||
2014 | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,935 | 1,946 | 1,916 | 1,910 | 2,009 | 1,963 | 1,721 | 1,751 | ||
Prior Year Development | 21 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (11) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 120 | |||||||||
Cumulative Number of Reported Claims | item | 38,149 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (213) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (89) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,722 | 1,701 | 1,694 | 1,634 | 1,678 | 1,667 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 31 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,719 | 1,653 | 1,572 | 1,392 | 1,150 | 868 | 620 | 210 | ||
Paid Impact of Adverse Development Reinsurance Agreement | (51) | |||||||||
2014 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 32 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (213) | (245) | (222) | (276) | (331) | (296) | ||||
2014 | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,057 | 2,000 | 1,981 | 1,960 | 1,927 | 1,892 | 1,777 | 1,812 | ||
Prior Year Development | 2 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 57 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 174 | |||||||||
Cumulative Number of Reported Claims | 17,630 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (296) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (137) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,761 | 1,759 | 1,741 | 1,753 | 1,729 | 1,733 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 37 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,758 | 1,658 | 1,573 | 1,387 | 1,158 | 849 | 366 | 66 | ||
Paid Impact of Adverse Development Reinsurance Agreement | (79) | |||||||||
2014 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (55) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (296) | (241) | (240) | (207) | (198) | (159) | ||||
2014 | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,730 | 2,750 | 2,768 | 2,788 | 2,770 | 2,783 | 2,712 | 2,943 | ||
Prior Year Development | (12) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (20) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 65 | |||||||||
Cumulative Number of Reported Claims | item | 60,699 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (70) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (33) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,660 | 2,672 | 2,692 | 2,724 | 2,709 | 2,716 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 32 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,628 | 2,597 | 2,558 | 2,465 | 2,326 | 2,113 | 1,761 | 913 | ||
Paid Impact of Adverse Development Reinsurance Agreement | (13) | |||||||||
2014 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 8 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (70) | (78) | (76) | (64) | (61) | (67) | ||||
2014 | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,587 | 1,588 | 1,584 | 1,583 | 1,572 | 1,572 | 1,562 | 1,552 | ||
Prior Year Development | (2) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1 | |||||||||
Cumulative Number of Reported Claims | item | 275,040 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (5) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,582 | 1,584 | 1,580 | 1,571 | 1,564 | 1,564 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 0 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,572 | 1,568 | 1,555 | 1,536 | 1,507 | 1,463 | 1,380 | 959 | ||
Paid Impact of Adverse Development Reinsurance Agreement | (3) | |||||||||
2014 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (1) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (5) | (4) | (4) | (12) | (8) | (8) | ||||
2014 | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,141 | 1,100 | 1,156 | 1,069 | 1,029 | 1,065 | 1,041 | 1,066 | ||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 41 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 67 | |||||||||
Cumulative Number of Reported Claims | item | 101,702 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 845 | 783 | 718 | 649 | 545 | 422 | 266 | 74 | ||
2014 | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,425 | 1,430 | 1,469 | 1,495 | 1,487 | 1,496 | 1,517 | 1,492 | ||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (5) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ (5) | |||||||||
Cumulative Number of Reported Claims | item | 48,480 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,386 | 1,373 | 1,363 | 1,335 | 1,296 | 1,225 | 938 | 322 | ||
2014 | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,662 | 2,664 | 2,663 | 2,664 | 2,671 | 2,674 | 2,692 | 2,682 | ||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (2) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 3 | |||||||||
Cumulative Number of Reported Claims | item | 1,795,001 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,641 | 2,632 | 2,618 | 2,593 | 2,536 | 2,427 | 2,206 | $ 1,464 | ||
2015 | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,634 | 1,675 | 1,722 | 1,814 | 1,866 | 1,864 | 1,708 | |||
Prior Year Development | (64) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (41) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 421 | |||||||||
Cumulative Number of Reported Claims | item | 36,513 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (593) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (394) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,041 | 1,105 | 1,134 | 1,318 | 1,279 | 1,279 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 27 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,013 | 979 | 925 | 854 | 725 | 524 | 234 | |||
Paid Impact of Adverse Development Reinsurance Agreement | (24) | |||||||||
2015 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (23) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (593) | (570) | (588) | (496) | (587) | (585) | ||||
2015 | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,721 | 1,694 | 1,656 | 1,603 | 1,440 | 1,463 | 989 | |||
Prior Year Development | 20 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 27 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 362 | |||||||||
Cumulative Number of Reported Claims | item | 2,922 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (490) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (248) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,231 | 1,211 | 1,163 | 1,139 | 1,015 | 1,027 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 114 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,124 | 1,061 | 935 | 718 | 391 | 210 | 9 | |||
Paid Impact of Adverse Development Reinsurance Agreement | (56) | |||||||||
2015 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (7) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (490) | (483) | (493) | (464) | (425) | (436) | ||||
2015 | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,824 | 1,834 | 1,794 | 1,736 | 1,829 | 1,762 | 1,329 | |||
Prior Year Development | 9 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (10) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 85 | |||||||||
Cumulative Number of Reported Claims | item | 35,309 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (262) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (61) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,562 | 1,553 | 1,493 | 1,423 | 1,373 | 1,361 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 24 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,603 | 1,485 | 1,351 | 1,087 | 769 | 309 | 105 | |||
Paid Impact of Adverse Development Reinsurance Agreement | (87) | |||||||||
2015 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 19 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (262) | (281) | (301) | (313) | (456) | (401) | ||||
2015 | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,959 | 1,874 | 1,830 | 1,788 | 1,743 | 1,762 | 1,737 | |||
Prior Year Development | 45 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 85 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 112 | |||||||||
Cumulative Number of Reported Claims | 16,223 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (364) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (101) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,595 | 1,550 | 1,552 | 1,462 | 1,430 | 1,429 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 11 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,686 | 1,488 | 1,282 | 1,055 | 791 | 390 | 63 | |||
Paid Impact of Adverse Development Reinsurance Agreement | (165) | |||||||||
2015 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (40) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (364) | (324) | (278) | (326) | (313) | (333) | ||||
2015 | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,868 | 2,860 | 2,865 | 2,901 | 2,911 | 2,982 | 3,100 | |||
Prior Year Development | 0 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 8 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 77 | |||||||||
Cumulative Number of Reported Claims | item | 59,363 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (107) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (47) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,761 | 2,761 | 2,771 | 2,814 | 2,813 | 2,841 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 30 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,726 | 2,688 | 2,618 | 2,492 | 2,237 | 1,871 | 1,037 | |||
Paid Impact of Adverse Development Reinsurance Agreement | (24) | |||||||||
2015 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | (8) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (107) | (99) | (94) | (87) | (98) | (141) | ||||
2015 | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,487 | 1,485 | 1,482 | 1,483 | 1,494 | 1,498 | 1,511 | |||
Prior Year Development | 2 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 2 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 10 | |||||||||
Cumulative Number of Reported Claims | item | 260,934 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ (5) | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | (2) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,482 | 1,480 | 1,476 | 1,472 | 1,475 | 1,476 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 8 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,463 | 1,461 | 1,455 | 1,439 | 1,411 | 1,320 | 931 | |||
Paid Impact of Adverse Development Reinsurance Agreement | (2) | |||||||||
2015 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | (5) | (5) | (6) | (11) | (19) | (22) | ||||
2015 | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,275 | 1,272 | 1,283 | 1,210 | 1,267 | 1,271 | 1,125 | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 3 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 93 | |||||||||
Cumulative Number of Reported Claims | item | 112,671 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 979 | 886 | 706 | 584 | 444 | 246 | 73 | |||
2015 | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,462 | 1,475 | 1,486 | 1,513 | 1,544 | 1,562 | 1,613 | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (13) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 13 | |||||||||
Cumulative Number of Reported Claims | item | 53,970 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,400 | 1,390 | 1,367 | 1,330 | 1,223 | 940 | 352 | |||
2015 | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,717 | 2,718 | 2,718 | 2,719 | 2,730 | 2,728 | 2,753 | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 6 | |||||||||
Cumulative Number of Reported Claims | item | 1,775,633 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,683 | 2,661 | 2,630 | 2,587 | 2,468 | 2,247 | $ 1,486 | |||
2016 | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,075 | 1,090 | 1,140 | 1,318 | 1,346 | 1,299 | ||||
Prior Year Development | (15) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (15) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 293 | |||||||||
Cumulative Number of Reported Claims | item | 31,374 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,075 | 1,090 | 1,140 | 1,318 | 1,346 | 1,299 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 293 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 662 | 630 | 584 | 521 | 378 | 147 | ||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2016 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | 0 | ||||
2016 | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,250 | 1,274 | 1,171 | 1,162 | 1,146 | 898 | ||||
Prior Year Development | (24) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (24) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 436 | |||||||||
Cumulative Number of Reported Claims | item | 2,454 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,250 | 1,274 | 1,171 | 1,162 | 1,146 | 898 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 436 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 566 | 502 | 388 | 204 | 80 | 28 | ||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2016 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | 0 | ||||
2016 | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,323 | 1,340 | 1,391 | 1,321 | 1,343 | 1,339 | ||||
Prior Year Development | (17) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (17) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 238 | |||||||||
Cumulative Number of Reported Claims | item | 28,646 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,323 | 1,340 | 1,391 | 1,321 | 1,343 | 1,339 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 238 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 938 | 846 | 703 | 489 | 298 | 77 | ||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2016 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | 0 | ||||
2016 | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,281 | 2,139 | 2,064 | 1,993 | 1,855 | 1,605 | ||||
Prior Year Development | 142 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 142 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 305 | |||||||||
Cumulative Number of Reported Claims | 16,111 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,281 | 2,139 | 2,064 | 1,993 | 1,855 | 1,605 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 305 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,826 | 1,659 | 1,358 | 1,002 | 499 | 73 | ||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2016 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | 0 | ||||
2016 | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,061 | 3,077 | 3,086 | 3,099 | 3,184 | 3,146 | ||||
Prior Year Development | (16) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (16) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 38 | |||||||||
Cumulative Number of Reported Claims | item | 54,635 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 3,061 | 3,077 | 3,086 | 3,099 | 3,184 | 3,146 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 38 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,882 | 2,798 | 2,613 | 2,362 | 2,027 | 999 | ||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2016 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | 0 | ||||
2016 | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,544 | 1,542 | 1,540 | 1,533 | 1,533 | 1,536 | ||||
Prior Year Development | 2 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 2 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 15 | |||||||||
Cumulative Number of Reported Claims | item | 247,133 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,544 | 1,542 | 1,540 | 1,533 | 1,533 | 1,536 | ||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 15 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,512 | 1,501 | 1,460 | 1,422 | 1,344 | 857 | ||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2016 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | 0 | ||||
2016 | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,640 | 1,643 | 1,540 | 1,538 | 1,483 | 1,351 | ||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (3) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 200 | |||||||||
Cumulative Number of Reported Claims | item | 140,787 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,086 | 955 | 795 | 602 | 389 | 123 | ||||
2016 | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,716 | 1,720 | 1,724 | 1,722 | 1,729 | 1,581 | ||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (4) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 22 | |||||||||
Cumulative Number of Reported Claims | item | 56,996 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,610 | 1,581 | 1,534 | 1,396 | 1,138 | 467 | ||||
2016 | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,668 | 2,673 | 2,674 | 2,682 | 2,698 | 2,703 | ||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (5) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 10 | |||||||||
Cumulative Number of Reported Claims | item | 1,797,359 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,616 | 2,587 | 2,532 | 2,427 | 2,211 | $ 1,485 | ||||
2017 | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 731 | 763 | 776 | 850 | 789 | |||||
Prior Year Development | (32) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (32) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 255 | |||||||||
Cumulative Number of Reported Claims | item | 27,125 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 731 | 763 | 776 | 850 | 789 | |||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 255 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 367 | 333 | 294 | 224 | 93 | |||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2017 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | |||||
2017 | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,157 | 1,153 | 1,097 | 1,002 | 856 | |||||
Prior Year Development | 4 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 4 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 371 | |||||||||
Cumulative Number of Reported Claims | item | 1,812 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,157 | 1,153 | 1,097 | 1,002 | 856 | |||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 371 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 585 | 505 | 156 | 45 | 1 | |||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2017 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | |||||
2017 | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 668 | 674 | 738 | 629 | 602 | |||||
Prior Year Development | (6) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (6) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 115 | |||||||||
Cumulative Number of Reported Claims | item | 20,792 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 668 | 674 | 738 | 629 | 602 | |||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 115 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 455 | 314 | 216 | 111 | 51 | |||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2017 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | |||||
2017 | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,898 | 1,846 | 1,756 | 1,675 | 1,564 | |||||
Prior Year Development | 52 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 52 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 263 | |||||||||
Cumulative Number of Reported Claims | 15,149 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,898 | 1,846 | 1,756 | 1,675 | 1,564 | |||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 263 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,396 | 1,118 | 761 | 391 | 64 | |||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2017 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | |||||
2017 | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 4,749 | 4,740 | 4,742 | 4,902 | 5,368 | |||||
Prior Year Development | 9 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 9 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 111 | |||||||||
Cumulative Number of Reported Claims | item | 79,437 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 4,749 | 4,740 | 4,742 | 4,902 | 5,368 | |||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 111 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 4,397 | 4,142 | 3,790 | 3,068 | 1,359 | |||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2017 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | |||||
2017 | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,924 | 2,057 | 2,011 | 2,137 | 1,878 | |||||
Prior Year Development | (133) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (133) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 46 | |||||||||
Cumulative Number of Reported Claims | item | 219,420 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,924 | 2,057 | 2,011 | 2,137 | 1,878 | |||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 46 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,826 | 1,789 | 1,896 | 1,672 | 941 | |||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2017 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | 0 | |||||
2017 | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,419 | 1,356 | 1,289 | 1,359 | 1,334 | |||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 63 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 257 | |||||||||
Cumulative Number of Reported Claims | item | 148,004 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 774 | 619 | 460 | 288 | 100 | |||||
2017 | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,639 | 1,656 | 1,650 | 1,659 | 1,702 | |||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (17) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 44 | |||||||||
Cumulative Number of Reported Claims | item | 53,464 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,458 | 1,400 | 1,252 | 965 | 360 | |||||
2017 | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,533 | 2,536 | 2,541 | 2,559 | 2,643 | |||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (3) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 14 | |||||||||
Cumulative Number of Reported Claims | item | 1,722,818 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,479 | 2,437 | 2,353 | 2,164 | $ 1,453 | |||||
2018 | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 911 | 961 | 1,021 | 998 | ||||||
Prior Year Development | (50) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (50) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 429 | |||||||||
Cumulative Number of Reported Claims | item | 21,739 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 911 | 961 | 1,021 | 998 | ||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 429 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 359 | 296 | 215 | 85 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2018 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | ||||||
2018 | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 769 | 721 | 646 | 648 | ||||||
Prior Year Development | 48 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 48 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 288 | |||||||||
Cumulative Number of Reported Claims | item | 1,177 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 769 | 721 | 646 | 648 | ||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 288 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 315 | 227 | 125 | 1 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2018 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | ||||||
2018 | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 870 | 837 | 845 | 802 | ||||||
Prior Year Development | 33 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 33 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 355 | |||||||||
Cumulative Number of Reported Claims | item | 16,314 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 870 | 837 | 845 | 802 | ||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 355 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 360 | 227 | 122 | 43 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2018 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | ||||||
2018 | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,063 | 1,882 | 1,766 | 1,640 | ||||||
Prior Year Development | 181 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 181 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 593 | |||||||||
Cumulative Number of Reported Claims | 14,721 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,063 | 1,882 | 1,766 | 1,640 | ||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 593 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,126 | 835 | 486 | 86 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2018 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | ||||||
2018 | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,930 | 3,712 | 3,757 | 3,702 | ||||||
Prior Year Development | 218 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 218 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 346 | |||||||||
Cumulative Number of Reported Claims | item | 69,199 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 3,930 | 3,712 | 3,757 | 3,702 | ||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 346 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 3,292 | 3,044 | 2,649 | 1,059 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2018 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | ||||||
2018 | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,937 | 2,154 | 2,193 | 2,188 | ||||||
Prior Year Development | (217) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (217) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 52 | |||||||||
Cumulative Number of Reported Claims | item | 101,536 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,937 | 2,154 | 2,193 | 2,188 | ||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 52 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,789 | 1,973 | 1,939 | 1,227 | ||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2018 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | 0 | ||||||
2018 | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,551 | 1,521 | 1,452 | 1,379 | ||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 30 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 407 | |||||||||
Cumulative Number of Reported Claims | item | 151,608 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 760 | 586 | 383 | 116 | ||||||
2018 | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,545 | 1,555 | 1,580 | 1,570 | ||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (10) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 73 | |||||||||
Cumulative Number of Reported Claims | item | 44,018 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,324 | 1,194 | 1,002 | 323 | ||||||
2018 | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,055 | 3,055 | 3,050 | 3,137 | ||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 59 | |||||||||
Cumulative Number of Reported Claims | item | 1,885,145 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,885 | 2,781 | 2,577 | $ 1,853 | ||||||
2019 | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 812 | 873 | 887 | |||||||
Prior Year Development | (61) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (61) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 359 | |||||||||
Cumulative Number of Reported Claims | item | 16,471 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 812 | 873 | 887 | |||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 359 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 301 | 219 | 93 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2019 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | |||||||
2019 | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 597 | 583 | 577 | |||||||
Prior Year Development | 14 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 14 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 392 | |||||||||
Cumulative Number of Reported Claims | item | 998,000,000 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 597 | 583 | 577 | |||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 392 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 79 | 43 | 7 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2019 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | |||||||
2019 | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,053 | 1,058 | 1,059 | |||||||
Prior Year Development | (5) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (5) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 683 | |||||||||
Cumulative Number of Reported Claims | item | 19,976 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,053 | 1,058 | 1,059 | |||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 683 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 226 | 138 | 53 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2019 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | |||||||
2019 | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,627 | 1,536 | 1,503 | |||||||
Prior Year Development | 91 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 91 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 637 | |||||||||
Cumulative Number of Reported Claims | 13,122 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,627 | 1,536 | 1,503 | |||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 637 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 642 | 367 | 94 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2019 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | |||||||
2019 | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,882 | 2,850 | 2,809 | |||||||
Prior Year Development | 32 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 32 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 300 | |||||||||
Cumulative Number of Reported Claims | item | 78,109 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 2,882 | 2,850 | 2,809 | |||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 300 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,341 | 2,032 | 1,137 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2019 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | |||||||
2019 | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,646 | 1,664 | 1,593 | |||||||
Prior Year Development | (18) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (18) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 185 | |||||||||
Cumulative Number of Reported Claims | item | 91,463 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,646 | 1,664 | 1,593 | |||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 185 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,379 | 1,295 | 884 | |||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2019 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | 0 | |||||||
2019 | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,372 | 1,296 | 1,483 | |||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 76 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 543 | |||||||||
Cumulative Number of Reported Claims | item | 139,801 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 490 | 323 | 101 | |||||||
2019 | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,143 | 1,148 | 1,206 | |||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (5) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 121 | |||||||||
Cumulative Number of Reported Claims | item | 32,749 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 840 | 666 | 272 | |||||||
2019 | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,473 | 2,474 | 2,521 | |||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 89 | |||||||||
Cumulative Number of Reported Claims | item | 1,656,951 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,247 | 2,090 | $ 1,454 | |||||||
2020 | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 573 | 597 | ||||||||
Prior Year Development | (24) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (24) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 276 | |||||||||
Cumulative Number of Reported Claims | item | 13,245 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 573 | 597 | ||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 276 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 159 | 64 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2020 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||
2020 | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 413 | 406 | ||||||||
Prior Year Development | 7 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 7 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 371 | |||||||||
Cumulative Number of Reported Claims | item | 790 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 413 | 406 | ||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 371 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 15 | 4 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2020 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||
2020 | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 576 | 524 | ||||||||
Prior Year Development | 52 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 52 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 427 | |||||||||
Cumulative Number of Reported Claims | item | 9,958 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 576 | 524 | ||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 427 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 73 | 26 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2020 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||
2020 | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,252 | 1,213 | ||||||||
Prior Year Development | 39 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 39 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 685 | |||||||||
Cumulative Number of Reported Claims | 10,055 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,252 | 1,213 | ||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 685 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 356 | 84 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2020 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||
2020 | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 4,466 | 4,481 | ||||||||
Prior Year Development | (15) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (15) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,293 | |||||||||
Cumulative Number of Reported Claims | item | 66,812 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 4,466 | 4,481 | ||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1,293 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 2,356 | 1,180 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2020 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||
2020 | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 906 | 954 | ||||||||
Prior Year Development | (48) | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (48) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 155 | |||||||||
Cumulative Number of Reported Claims | item | 52,251 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 906 | 954 | ||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 155 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 679 | 667 | ||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2020 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | 0 | ||||||||
2020 | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,303 | 1,253 | ||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 50 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 834 | |||||||||
Cumulative Number of Reported Claims | item | 86,834 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 233 | 61 | ||||||||
2020 | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,278 | 1,329 | ||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (51) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 281 | |||||||||
Cumulative Number of Reported Claims | item | 24,220 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 688 | 257 | ||||||||
2020 | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,104 | 2,252 | ||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (148) | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 141 | |||||||||
Cumulative Number of Reported Claims | item | 1,354,093 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,746 | $ 1,212 | ||||||||
2021 | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 597 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 446 | |||||||||
Cumulative Number of Reported Claims | item | 9,067 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 597 | |||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 446 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 60 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 | U.S. Workers Compensation | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 278 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 245 | |||||||||
Cumulative Number of Reported Claims | item | 340 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 278 | |||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 245 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 4 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 | U.S. Excess Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 795 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 711 | |||||||||
Cumulative Number of Reported Claims | item | 7,561 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 795 | |||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 711 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 32 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 | U.S. Other Casualty | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,430 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,318 | |||||||||
Cumulative Number of Reported Claims | 6,386 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 1,430 | |||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1,318 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 43 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 | U.S. Financial Lines | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 3,554 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,316 | |||||||||
Cumulative Number of Reported Claims | item | 55,054 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 3,554 | |||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 1,316 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,174 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 | U.S. Property and Special Risks | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 748 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 129 | |||||||||
Cumulative Number of Reported Claims | item | 40,437 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | $ 0 | |||||||||
IBNR Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | 748 | |||||||||
Total of IBNR Liabilities Net of Impact Adverse Development Reinsurance Agreement | 129 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 488 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 | U.S. Personal Insurance | Adverse Development Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Prior Year Development | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,557 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 1,204 | |||||||||
Cumulative Number of Reported Claims | item | 62,310 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 53 | |||||||||
2021 | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 1,223 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 444 | |||||||||
Cumulative Number of Reported Claims | item | 14,493 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 194 | |||||||||
2021 | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance | 2,171 | |||||||||
Total of IBNR Liabilities Plus Expected Development on Reported Losses | $ 388 | |||||||||
Cumulative Number of Reported Claims | item | 1,197,412 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,188 | |||||||||
Unallocated | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 28 | |||||||||
Unallocated | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 13 | |||||||||
Unallocated | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (19) | |||||||||
Unallocated | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 45 | |||||||||
Unallocated | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (13) | |||||||||
Unallocated | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
Unallocated | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
Unallocated | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
Unallocated | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 0 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | UK/Europe Casualty and Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | UK/Europe Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | UK/Europe and Japan Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 126 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (3,570) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 129 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (1,680) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 177 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (1,000) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 326 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (182) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 47 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (126) | |||||||||
Incurred Impact of Adverse Development Reinsurance Agreement | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 6 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (5) | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 7,160 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | 1,065 | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | (70) | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 4,158 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Total | 8,746 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 5,412 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | 516 | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 92 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 3,850 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 9,259 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | 435 | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 28 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 3,805 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 11,872 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (44) | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 60 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 5,356 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 28,308 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | 214 | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | (6) | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 6,615 | |||||||||
2021 (Net of Impact of Adverse Development Reinsurance Agreement) | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 14,576 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year development before 2012, net of reinsurance | (67) | |||||||||
Unallocated Loss Adjustment Expense Prior Year Development | 0 | |||||||||
Liabilities for losses and loss adjustment expenses and prior year loss development, net of reinsurance | 1,001 | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Workers Compensation | ||||||||||
Claims Development [Line Items] | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | (126) | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Excess Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | (129) | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Other Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | (177) | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Financial Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | (326) | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Property and Special Risks | ||||||||||
Claims Development [Line Items] | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | (47) | |||||||||
Paid Impact of Adverse Development Reinsurance Agreement | U.S. Personal Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Paid Impact of Adverse Development Reinsurance Agreement | $ (6) |
INSURANCE LIABILITIES (Detail_4
INSURANCE LIABILITIES (Details - Reconciliation of change in net ultimates to prior year development) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Net of External Reinsurance Before ADC Cessions | $ (171) | ||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | 78 | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | (193) | ||
Prior Year Development | (115) | ||
Total, prior years, excluding discount and amortization of deferred gain | (171) | $ (90) | $ (340) |
U.S. Workers Compensation | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Net of External Reinsurance Before ADC Cessions | (617) | ||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | (403) | ||
Re-Attribution of ADC Recovery | 80 | ||
Amortization of Deferred Gain at Inception | (60) | ||
Prior Year Development | (383) | ||
Total, prior years, excluding discount and amortization of deferred gain | (617) | (367) | (699) |
U.S. Excess Casualty | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Net of External Reinsurance Before ADC Cessions | 51 | ||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | 81 | ||
Re-Attribution of ADC Recovery | (40) | ||
Amortization of Deferred Gain at Inception | (46) | ||
Prior Year Development | (5) | ||
Total, prior years, excluding discount and amortization of deferred gain | 51 | (149) | 76 |
U.S. Other Casualty | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Net of External Reinsurance Before ADC Cessions | (1) | ||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | 74 | ||
Re-Attribution of ADC Recovery | (23) | ||
Amortization of Deferred Gain at Inception | (44) | ||
Prior Year Development | 7 | ||
Total, prior years, excluding discount and amortization of deferred gain | (1) | (141) | 168 |
U.S. Financial Lines | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Net of External Reinsurance Before ADC Cessions | 649 | ||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | 564 | ||
Re-Attribution of ADC Recovery | (12) | ||
Amortization of Deferred Gain at Inception | (31) | ||
Prior Year Development | 521 | ||
Total, prior years, excluding discount and amortization of deferred gain | 649 | 479 | 463 |
U.S. Property and Specialty Risks | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Net of External Reinsurance Before ADC Cessions | 172 | ||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | 204 | ||
Re-Attribution of ADC Recovery | (5) | ||
Amortization of Deferred Gain at Inception | (10) | ||
Prior Year Development | 189 | ||
U.S. Personal Insurance | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Net of External Reinsurance Before ADC Cessions | (412) | ||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | (411) | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | (2) | ||
Prior Year Development | (413) | ||
Total, prior years, excluding discount and amortization of deferred gain | (412) | 94 | (96) |
UK/Europe Casualty and Financial Lines | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Net of External Reinsurance Before ADC Cessions | 210 | ||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | 210 | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | 0 | ||
Prior Year Development | 210 | ||
Total, prior years, excluding discount and amortization of deferred gain | 210 | 258 | 161 |
UK/Europe Property and Special Risks | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Net of External Reinsurance Before ADC Cessions | (118) | ||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | (118) | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | 0 | ||
Prior Year Development | (118) | ||
Total, prior years, excluding discount and amortization of deferred gain | (118) | (155) | (108) |
UK/Europe and Japan Personal Insurance | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Net of External Reinsurance Before ADC Cessions | (173) | ||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | (173) | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | 0 | ||
Prior Year Development | (173) | ||
Total, prior years, excluding discount and amortization of deferred gain | (173) | $ (39) | $ (119) |
Other Operations Run-Off | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Net of External Reinsurance Before ADC Cessions | 86 | ||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | 86 | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | 0 | ||
Prior Year Development | 86 | ||
Other Product Lines | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Net of External Reinsurance Before ADC Cessions | (18) | ||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | (36) | ||
Re-Attribution of ADC Recovery | 0 | ||
Amortization of Deferred Gain at Inception | 0 | ||
Prior Year Development | (36) | ||
Asbestos LPT | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Ceded | 0 | ||
Adverse Development Reinsurance | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Development Ceded | (249) | ||
Adverse Development Reinsurance | U.S. Workers Compensation | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | 214 | ||
Adverse Development Reinsurance | U.S. Excess Casualty | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | 30 | ||
Adverse Development Reinsurance | U.S. Other Casualty | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | 75 | ||
Adverse Development Reinsurance | U.S. Financial Lines | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | (85) | ||
Adverse Development Reinsurance | U.S. Personal Insurance | |||
Reconciliation Of Change In Net Ultimates To Prior Year Development [Line Items] | |||
Prior Year Developnment Net of External Reinsurance Before ADC Cessions | $ 1 |
INSURANCE LIABILITIES (Detail_5
INSURANCE LIABILITIES (Details - Annual Percentage Claims Payout) | Dec. 31, 2021 |
U.S. Workers Compensation | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 13.10% |
Year 2 | 17.70% |
Year 3 | 11.80% |
Year 4 | 7.60% |
Year 5 | 5.80% |
Year 6 | 3.90% |
Year 7 | 2.60% |
Year 8 | 2.00% |
Year 9 | 2.50% |
Year 10 | 2.00% |
U.S. Excess Casualty | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 0.80% |
Year 2 | 7.20% |
Year 3 | 10.30% |
Year 4 | 17.10% |
Year 5 | 10.90% |
Year 6 | 9.60% |
Year 7 | 7.70% |
Year 8 | 4.60% |
Year 9 | (0.20%) |
Year 10 | 1.40% |
U.S. Other Casualty | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 7.40% |
Year 2 | 13.00% |
Year 3 | 14.80% |
Year 4 | 15.10% |
Year 5 | 13.70% |
Year 6 | 8.20% |
Year 7 | 5.60% |
Year 8 | 2.90% |
Year 9 | 1.40% |
Year 10 | 1.30% |
U.S. Financial Lines | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 3.90% |
Year 2 | 17.70% |
Year 3 | 20.30% |
Year 4 | 16.50% |
Year 5 | 12.50% |
Year 6 | 7.80% |
Year 7 | 5.60% |
Year 8 | 5.40% |
Year 9 | 3.60% |
Year 10 | 1.00% |
U.S. Property and Special Risks | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 30.70% |
Year 2 | 34.00% |
Year 3 | 12.50% |
Year 4 | 7.90% |
Year 5 | 5.30% |
Year 6 | 3.20% |
Year 7 | 1.10% |
Year 8 | 0.90% |
Year 9 | 0.40% |
Year 10 | 0.20% |
U.S. Personal Insurance | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 60.50% |
Year 2 | 27.50% |
Year 3 | 5.20% |
Year 4 | (0.60%) |
Year 5 | 1.60% |
Year 6 | 0.70% |
Year 7 | 0.40% |
Year 8 | 0.30% |
Year 9 | 0.10% |
Year 10 | 0.10% |
UK/Europe Casualty and Financial Lines | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 6.60% |
Year 2 | 16.00% |
Year 3 | 13.00% |
Year 4 | 11.70% |
Year 5 | 10.00% |
Year 6 | 9.10% |
Year 7 | 7.00% |
Year 8 | 4.80% |
Year 9 | 2.60% |
Year 10 | 1.80% |
UK/Europe and Japan Personal Insurance | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 22.90% |
Year 2 | 39.10% |
Year 3 | 16.90% |
Year 4 | 7.20% |
Year 5 | 3.30% |
Year 6 | 1.90% |
Year 7 | 0.80% |
Year 8 | 0.70% |
Year 9 | 0.10% |
Year 10 | 0.40% |
UK/Europe Property and Special Risks | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Year 1 | 56.70% |
Year 2 | 26.70% |
Year 3 | 7.70% |
Year 4 | 3.80% |
Year 5 | 1.90% |
Year 6 | 1.10% |
Year 7 | 0.60% |
Year 8 | 0.30% |
Year 9 | 0.20% |
Year 10 | 0.10% |
INSURANCE LIABILITIES (Detail_6
INSURANCE LIABILITIES (Details - Narratives) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Insurance Liabilities Disclosure [Line Items] | |||
Gross Loss Reserves Before Reinsurance and Discount Net of Subrogation | $ 12,300 | $ 12,600 | |
Collateral Held For Deductible Recoverable Amounts | 8,600 | 9,200 | |
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (171) | (90) | $ (340) |
Amotization of deferred gain on retroactive teinsurance | 137 | 196 | 193 |
Discounting Of Loss Reserves [Abstract] | |||
Loss Reserve Discount | 876 | 725 | |
Workers Compensation Tabular Discount Amount | 260 | 285 | |
Workers Compensation Non Tabular Discount Amount | 616 | 440 | |
(Increase) Decrease in Loss Reserve Discount | $ 193 | (516) | (955) |
New York | |||
Discounting Of Loss Reserves [Abstract] | |||
Tabular Discount Rate | 5.00% | ||
Effective Interest Rates | |||
Discounting Of Loss Reserves [Abstract] | |||
(Increase) Decrease in Loss Reserve Discount | $ 219 | (407) | (747) |
U.S. Workers Compensation | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (617) | (367) | (699) |
U.S. Excess Casualty | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 51 | (149) | 76 |
Analysis of loss reserves using traditional loss development and expected loss ratio methods | 10 | ||
Analysis of Loss reserves for expected losses above threshold | 10 | ||
U.S. Other Casualty | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (1) | (141) | 168 |
U.S. Other Casualty | Commercial Auto Liability | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (6) | 11 | 23 |
U.S. Other Casualty | General Liability | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (28) | 65 | 220 |
U.S. Other Casualty | Medical Malpractice | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (25) | (26) | 30 |
U.S. Other Casualty | Other Product Lines | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 8 | (191) | (105) |
U.S. Financial Lines | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 649 | 479 | 463 |
U.S. Property and Special Risks | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 172 | (80) | (204) |
U.S. Personal Insurance | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (412) | 94 | (96) |
UK/Europe Casualty and Financial Lines | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | 210 | 258 | 161 |
UK/Europe Property and Special Risks | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | (118) | (155) | (108) |
UK/Europe and Japan Personal Insurance | |||
Insurance Liabilities Disclosure [Line Items] | |||
2021 Prior Year Development Excluding the Impact of Adverse Development Reinsurance Agreement | $ (173) | $ (39) | $ (119) |
INSURANCE LIABILITIES (Detail_7
INSURANCE LIABILITIES (Details - Discounting of Reserves) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Discounting of Reserves [Line Items] | |||
Workers Compensation Tabular Discount Amount | $ 260 | $ 285 | |
Workers Compensation Non Tabular Discount Amount | 616 | 440 | |
U.S. Workers' compensation | 1,829 | 1,636 | |
Retroactive Reinsurance | (953) | (911) | |
Total reserve discount | 876 | 725 | |
Current accident year | 62 | 71 | $ 108 |
Accretion and other adjustments to prior year discount | (88) | (180) | (316) |
Effect of interest rate changes | 219 | (407) | (747) |
Net loss reserve discount benefit (charge) | 193 | (516) | (955) |
Change in discount on loss reserves ceded under retroactive reinsurance | (42) | 340 | 469 |
Net change in total reserve discount | $ 151 | (176) | (486) |
Maximum [Member] | |||
Discounting of Reserves [Line Items] | |||
Tabular Discount Rate | 45.00% | ||
Fortitude [Member] | |||
Discounting of Reserves [Line Items] | |||
Total reserve discount | $ 500 | 493 | |
Percent of discount ceded on sale | 100.00% | ||
North America Commercial Insurance | |||
Discounting of Reserves [Line Items] | |||
U.S. Workers' compensation | $ 1,829 | 1,636 | |
Retroactive Reinsurance | (953) | (911) | |
Total reserve discount | 876 | 725 | |
Current accident year | 62 | 71 | 108 |
Accretion and other adjustments to prior year discount | (88) | (162) | (229) |
Effect of interest rate changes | 219 | (407) | (527) |
Net loss reserve discount benefit (charge) | 193 | (498) | (648) |
Change in discount on loss reserves ceded under retroactive reinsurance | (42) | 340 | 469 |
Net change in total reserve discount | 151 | (158) | (179) |
Other Operations Run-Off | |||
Discounting of Reserves [Line Items] | |||
U.S. Workers' compensation | 0 | 0 | |
Retroactive Reinsurance | 0 | 0 | |
Total reserve discount | 0 | 0 | |
Current accident year | 0 | 0 | 0 |
Accretion and other adjustments to prior year discount | 0 | (18) | (87) |
Effect of interest rate changes | 0 | 0 | (220) |
Net loss reserve discount benefit (charge) | 0 | (18) | (307) |
Change in discount on loss reserves ceded under retroactive reinsurance | 0 | 0 | 0 |
Net change in total reserve discount | $ 0 | (18) | (307) |
New York | |||
Discounting of Reserves [Line Items] | |||
Nontabular discount rate | 5.00% | ||
Tabular Discount Rate | 5.00% | ||
United Kingdom | |||
Discounting of Reserves [Line Items] | |||
Total reserve discount | $ 116 | 151 | |
Net change in total reserve discount | $ (35) | $ (20) | $ 9 |
INSURANCE LIABILITIES (Detail_8
INSURANCE LIABILITIES (Details - Future Policy Benefits) - Life Insurance | Dec. 31, 2021 |
Maximum | |
Assumptions for liability for future life policy benefits | |
Liability for future policy benefits, interest rate | 14.60% |
Minimum | |
Assumptions for liability for future life policy benefits | |
Liability for future policy benefits, interest rate | 0.20% |
INSURANCE LIABILITIES (Detail_9
INSURANCE LIABILITIES (Details - Policyholder contract deposits) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 156,686 | $ 154,470 |
Assumptions for liability for policyholder contract deposits | ||
Percentage of gross insurance in force | 1.20% | |
Percentage of gross premiums and other consideration | 1.70% | |
Maximum | ||
Assumptions for liability for policyholder contract deposits | ||
Withdrawal charges, high end of range (as a percent) | 10.00% | |
Minimum | ||
Assumptions for liability for policyholder contract deposits | ||
Withdrawal charges, low end of range (as a percent) | 0.30% | |
Individual retirement | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 87,664 | 84,874 |
Group Retirement | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 44,087 | 43,804 |
Life Insurance | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 10,298 | 10,286 |
Institutional Markets | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | 10,810 | 11,361 |
Fortitude RE | ||
Policyholder Contract Deposits [Line Items] | ||
Total policyholder contract deposits | $ 3,827 | $ 4,145 |
INSURANCE LIABILITIES (Detai_10
INSURANCE LIABILITIES (Details - Schedule of universal life policies with secondary guarantees) - Universal life products - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Balance at the beginning of the period | $ 4,751 | $ 3,787 | $ 2,893 |
Incurred guaranteed benefits | 603 | 1,041 | 514 |
Paid guaranteed benefits | (489) | (470) | (469) |
Changes in unrealized appreciation (depreciation) of investments | (360) | 393 | 849 |
Balance at the end of the period | 4,505 | 4,751 | $ 3,787 |
Net Amount at Risk [Abstract] | |||
Account value | 3,313 | 3,078 | |
Net amount at risk | $ 65,801 | $ 63,721 | |
Average attained age of contract holders by product | 53 years | 53 years |
VARIABLE LIFE AND ANNUITY CON_3
VARIABLE LIFE AND ANNUITY CONTRACTS (Details - Annuity contracts with guarantees were invested in separate account investment options) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | $ 101,573 | $ 93,489 |
As Previously Reported | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 94,000 | |
Equity Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 62,241 | 56,762 |
Bonds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 9,016 | 8,298 |
Balanced Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | 29,311 | 27,307 |
Money Market Funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Account balances of variable annuity contract, Total | $ 1,005 | $ 1,122 |
VARIABLE LIFE AND ANNUITY CON_4
VARIABLE LIFE AND ANNUITY CONTRACTS (Details - GMDB, GMIB, GMWB and GMAV) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | $ 4,454 | $ 5,822 | |
Guaranteed minimum death benefits (GMDB) | |||
Changes in GMDB for guarantees on variable contracts reflected in the general account | |||
Balance at the beginning of the period | 421 | 407 | $ 397 |
Reserve increase (decrease) | 72 | 41 | 35 |
Benefits paid | (35) | (43) | (40) |
Changes in reserves related to unrealized appreciation (depreciation) of investments | (13) | 16 | 15 |
Balance at the end of the period | 445 | 421 | $ 407 |
Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 51,000 | 48,000 | |
Net amount at risk | 513 | 1,100 | |
Embedded derivatives | |||
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | 14,500 | 15,800 | |
Embedded derivatives | Guaranteed minimum account value benefits (GMAB) and Guaranteed minimum withdrawal benefits (GMWB) | |||
Assumptions and methodology used to determine the GMDB liability | |||
Fair value of embedded derivatives, liability | 2,500 | 3,600 | |
Variable contract, net deposits plus a minimum return | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | 114,936 | 105,010 | |
Net amount at risk | $ 509 | $ 490 | |
Average attained age of contract holders by product | 66 years | 65 years | |
Variable contract, net deposits plus a minimum return | Minimum | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Range of guaranteed minimum return rates (as a percent) | 0.00% | 0.00% | |
Variable contract, net deposits plus a minimum return | Maximum | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Range of guaranteed minimum return rates (as a percent) | 4.50% | 4.50% | |
Variable annuity contract, highest contract value attained | Guaranteed minimum death benefits (GMDB) | |||
Liabilities for Guarantees on Long-Duration Contracts [Line Items] | |||
Account value | $ 17,298 | $ 16,667 | |
Net amount at risk | $ 258 | $ 276 | |
Average attained age of contract holders by product | 72 years | 72 years |
DEBT (Details - Total debt outs
DEBT (Details - Total debt outstanding) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | |||
Long-term debt | [1] | $ 30,163 | $ 37,534 |
Collateral posted | 2,700 | 3,000 | |
American International Group, Inc. | |||
Debt Instrument [Line Items] | |||
Long-term debt | 23,741 | 28,103 | |
Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | 333 | ||
Collateralized Loans and Mortgages Payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | 3 | ||
Notes and bonds payable | Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | 19,633 | ||
Notes and bonds payable | Uncollateralized Notes/Bonds/Loans Payable | AIGLH | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 199 | 282 | |
Debt Instrument, Maturity, Start year | 2025 | ||
Debt Instrument, Maturity, End Year | 2029 | ||
Notes and bonds payable | Uncollateralized Notes/Bonds/Loans Payable | Validus Holdings, Ltd | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 8.88% | ||
Long-term debt | $ 293 | 348 | |
Debt Instrument, Maturity, End Year | 2040 | ||
Notes and bonds payable | Uncollateralized Notes/Bonds/Loans Payable | Maximum | AIGLH | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 7.50% | ||
Notes and bonds payable | Uncollateralized Notes/Bonds/Loans Payable | Minimum | AIGLH | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 6.63% | ||
Junior subordinated debt | Uncollateralized Notes/Bonds/Loans Payable | AIGLH | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 227 | 361 | |
Debt Instrument, Maturity, Start year | 2030 | ||
Debt Instrument, Maturity, End Year | 2046 | ||
Junior subordinated debt | Uncollateralized Notes/Bonds/Loans Payable | Maximum | AIGLH | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 8.50% | ||
Junior subordinated debt | Uncollateralized Notes/Bonds/Loans Payable | Minimum | AIGLH | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 7.57% | ||
AIG Japan Holdings Kabushiki Kaisha | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 333 | ||
AIG Japan Holdings Kabushiki Kaisha | Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | 333 | ||
AIG Japan Holdings Kabushiki Kaisha | Collateralized Loans and Mortgages Payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | ||
Other subsidiaries notes, bonds, loans and mortgages payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | 3 | ||
Other subsidiaries notes, bonds, loans and mortgages payable | Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | ||
Other subsidiaries notes, bonds, loans and mortgages payable | Collateralized Loans and Mortgages Payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | 3 | ||
Debt of consolidated investments | |||
Debt Instrument [Line Items] | |||
Long-term debt | [1] | 6,422 | 9,431 |
Debt issued or guaranteed | |||
Debt Instrument [Line Items] | |||
Long-term debt | 23,738 | 28,099 | |
Uncollateralized Notes/Bonds/Loans Payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | 21,849 | 25,981 | |
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 19,633 | 23,068 | |
Debt Instrument, Maturity, Start year | 2022 | ||
Debt Instrument, Maturity, End Year | 2055 | ||
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 8.13% | ||
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.00% | ||
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,164 | 1,561 | |
Debt Instrument, Maturity, Start year | 2037 | ||
Debt Instrument, Maturity, End Year | 2058 | ||
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 8.18% | ||
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 4.88% | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG Japan Holdings Kabushiki Kaisha | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 333 | 361 | |
Debt Instrument, Maturity, Start year | 2023 | ||
Debt Instrument, Maturity, End Year | 2025 | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG Japan Holdings Kabushiki Kaisha | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.35% | ||
Uncollateralized Notes/Bonds/Loans Payable | AIG Japan Holdings Kabushiki Kaisha | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.20% | ||
Borrowings supported by assets | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,889 | 2,118 | |
Collateral posted | 1,400 | 1,400 | |
Borrowings supported by assets | Notes and bonds payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 68 | 64 | |
Debt Instrument, Maturity, Start year | 2030 | ||
Debt Instrument, Maturity, End Year | 2037 | ||
Borrowings supported by assets | Notes and bonds payable | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 10.37% | ||
Borrowings supported by assets | Notes and bonds payable | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.50% | ||
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 18 | 21 | |
Debt Instrument, Maturity, End Year | 2046 | ||
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.18% | ||
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.175% | ||
Borrowings supported by assets | GIAs | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,803 | 2,033 | |
Debt Instrument, Maturity, Start year | 2022 | ||
Debt Instrument, Maturity, End Year | 2047 | ||
Borrowings supported by assets | GIAs | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 7.15% | ||
Borrowings supported by assets | GIAs | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.00% | ||
Debt not guaranteed | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 3 | ||
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 3 | 4 | |
Debt Instrument, Maturity, Start year | 2022 | ||
Debt Instrument, Maturity, End Year | 2024 | ||
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.70% | ||
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 2.76% | ||
Debt not guaranteed | Debt of consolidated investments | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 6,422 | 9,431 | |
Debt Instrument, Maturity, Start year | 2022 | ||
Debt Instrument, Maturity, End Year | 2051 | ||
Debt not guaranteed | Debt of consolidated investments | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 7.95% | ||
Debt not guaranteed | Debt of consolidated investments | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 0.00% | ||
Debt not guaranteed | Debt of consolidated investments | Real Estate and Investment Funds [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,900 | 3,100 | |
Debt not guaranteed | Debt of consolidated investments | Affordable Housing Partnership [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 2,300 | ||
Debt not guaranteed | Debt of consolidated investments | Other | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 4,500 | $ 4,000 | |
[1] | See Note 9 for details of balances associated with variable interest entities. |
DEBT (Details - Maturities of l
DEBT (Details - Maturities of long-term debt) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Maturities of long-term debt | |||
Total | [1] | $ 30,163 | $ 37,534 |
Uncollateralized and collateralized notes, bonds, loans and mortgages payable | 336 | ||
Long-term debt | [1] | 30,163 | 37,534 |
Uncollateralized Notes/Bonds/Loans Payable | |||
Maturities of long-term debt | |||
Total | 333 | ||
Long-term debt | 333 | ||
Collateralized Loans and Mortgages Payable | |||
Maturities of long-term debt | |||
Total | 3 | ||
Long-term debt | 3 | ||
American International Group, Inc. | |||
Maturities of long-term debt | |||
Total | 23,741 | 28,103 | |
2022 | 68 | ||
2023 | 1,958 | ||
2024 | 1,145 | ||
2025 | 3,539 | ||
2026 | 1,643 | ||
Thereafter | 15,388 | ||
Long-term debt | 23,741 | 28,103 | |
Notes and bonds payable | Uncollateralized Notes/Bonds/Loans Payable | |||
Maturities of long-term debt | |||
Total | 19,633 | ||
Long-term debt | 19,633 | ||
Notes and bonds payable | Validus Holdings, Ltd | Uncollateralized Notes/Bonds/Loans Payable | |||
Maturities of long-term debt | |||
Total | 293 | 348 | |
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
Thereafter | 293 | ||
Long-term debt | 293 | 348 | |
Notes and bonds payable | AIGLH | Uncollateralized Notes/Bonds/Loans Payable | |||
Maturities of long-term debt | |||
Total | 199 | 282 | |
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 101 | ||
2026 | 0 | ||
Thereafter | 98 | ||
Long-term debt | 199 | 282 | |
Junior subordinated debt | AIGLH | Uncollateralized Notes/Bonds/Loans Payable | |||
Maturities of long-term debt | |||
Total | 227 | 361 | |
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
Thereafter | 227 | ||
Long-term debt | 227 | 361 | |
AIG Japan Holdings Kabushiki Kaisha | |||
Maturities of long-term debt | |||
Total | 333 | ||
Long-term debt | 333 | ||
AIG Japan Holdings Kabushiki Kaisha | Uncollateralized Notes/Bonds/Loans Payable | |||
Maturities of long-term debt | |||
Total | 333 | ||
Long-term debt | 333 | ||
AIG Japan Holdings Kabushiki Kaisha | Collateralized Loans and Mortgages Payable | |||
Maturities of long-term debt | |||
Total | 0 | ||
Long-term debt | 0 | ||
Other subsidiaries notes, bonds, loans and mortgages payable | |||
Maturities of long-term debt | |||
Total | 3 | ||
Long-term debt | 3 | ||
Other subsidiaries notes, bonds, loans and mortgages payable | Uncollateralized Notes/Bonds/Loans Payable | |||
Maturities of long-term debt | |||
Total | 0 | ||
Long-term debt | 0 | ||
Other subsidiaries notes, bonds, loans and mortgages payable | Collateralized Loans and Mortgages Payable | |||
Maturities of long-term debt | |||
Total | 3 | ||
Long-term debt | 3 | ||
Debt of consolidated investments | |||
Maturities of long-term debt | |||
Total | [1] | 6,422 | 9,431 |
Long-term debt | [1] | 6,422 | 9,431 |
Debt issued or guaranteed | |||
Maturities of long-term debt | |||
Total | 23,738 | 28,099 | |
2022 | 67 | ||
2023 | 1,956 | ||
2024 | 1,145 | ||
2025 | 3,539 | ||
2026 | 1,643 | ||
Thereafter | 15,388 | ||
Long-term debt | 23,738 | 28,099 | |
Uncollateralized Notes/Bonds/Loans Payable | |||
Maturities of long-term debt | |||
Total | 21,849 | 25,981 | |
2022 | 17 | ||
2023 | 1,832 | ||
2024 | 999 | ||
2025 | 2,968 | ||
2026 | 1,543 | ||
Thereafter | 14,490 | ||
Long-term debt | 21,849 | 25,981 | |
Uncollateralized Notes/Bonds/Loans Payable | Notes and bonds payable | |||
Maturities of long-term debt | |||
Total | 19,633 | 23,068 | |
2022 | 17 | ||
2023 | 1,614 | ||
2024 | 999 | ||
2025 | 2,752 | ||
2026 | 1,543 | ||
Thereafter | 12,708 | ||
Long-term debt | 19,633 | 23,068 | |
Uncollateralized Notes/Bonds/Loans Payable | Junior subordinated debt | |||
Maturities of long-term debt | |||
Total | 1,164 | 1,561 | |
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
Thereafter | 1,164 | ||
Long-term debt | 1,164 | 1,561 | |
Uncollateralized Notes/Bonds/Loans Payable | AIG Japan Holdings Kabushiki Kaisha | |||
Maturities of long-term debt | |||
Total | 333 | 361 | |
2022 | 0 | ||
2023 | 218 | ||
2024 | 0 | ||
2025 | 115 | ||
2026 | 0 | ||
Thereafter | 0 | ||
Long-term debt | 333 | 361 | |
Borrowings supported by assets | |||
Maturities of long-term debt | |||
Total | 1,889 | 2,118 | |
2022 | 50 | ||
2023 | 124 | ||
2024 | 146 | ||
2025 | 571 | ||
2026 | 100 | ||
Thereafter | 898 | ||
Long-term debt | 1,889 | 2,118 | |
Borrowings supported by assets | Notes and bonds payable | |||
Maturities of long-term debt | |||
Total | 68 | 64 | |
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
Thereafter | 68 | ||
Long-term debt | 68 | 64 | |
Borrowings supported by assets | Notes and bonds payable | Series AIGFP | |||
Maturities of long-term debt | |||
Total | 18 | 21 | |
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
Thereafter | 18 | ||
Long-term debt | 18 | 21 | |
Borrowings supported by assets | GIAs | |||
Maturities of long-term debt | |||
Total | 1,803 | 2,033 | |
2022 | 50 | ||
2023 | 124 | ||
2024 | 146 | ||
2025 | 571 | ||
2026 | 100 | ||
Thereafter | 812 | ||
Long-term debt | 1,803 | 2,033 | |
Debt not guaranteed | |||
Maturities of long-term debt | |||
Total | 3 | ||
2022 | 1 | ||
2023 | 2 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
Thereafter | 0 | ||
Long-term debt | 3 | ||
Debt not guaranteed | Other subsidiaries notes, bonds, loans and mortgages payable | |||
Maturities of long-term debt | |||
Total | 3 | 4 | |
2022 | 1 | ||
2023 | 2 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
Thereafter | 0 | ||
Long-term debt | 3 | 4 | |
Debt not guaranteed | Debt of consolidated investments | |||
Maturities of long-term debt | |||
Total | 6,422 | 9,431 | |
Long-term debt | $ 6,422 | $ 9,431 | |
[1] | See Note 9 for details of balances associated with variable interest entities. |
DEBT (Details - AIGLH Junior su
DEBT (Details - AIGLH Junior subordinated debentures and cash tender offers and redemptions)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ (389) | $ (12) | $ (32) |
8.5 percent Junior subordinated debentures due July 2030 | |||
Debt Instrument [Line Items] | |||
Junior subordinated debentures liquidation value | $ 54 | ||
Interest rate (as a percent) | 8.50% | ||
8.125 percent Junior subordinated debentures due March 2046 | |||
Debt Instrument [Line Items] | |||
Junior subordinated debentures liquidation value | $ 142 | ||
Interest rate (as a percent) | 8.125% | ||
7.57 percent Junior subordinated debentures due December 2045 | |||
Debt Instrument [Line Items] | |||
Junior subordinated debentures liquidation value | $ 31 | ||
Interest rate (as a percent) | 7.57% | ||
3.300% notes due 2021 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 3.30% | ||
Aggregate principal amount of debt redeemed | $ 1,500 | ||
Redemption price percentage | 100.00% | ||
Certain notes and debentures issued or guaranteed | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount of debt redeemed | $ 4,000 | ||
Aggregate purchase price of debt | 4,400 | ||
Loss on extinguishment of debt | (408) | ||
Certain notes and debentures issued or guaranteed. other | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount of debt redeemed | 945 | ||
Aggregate purchase price of debt | $ 1,300 | ||
4.875% notes due 2022 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 4.875% | ||
Aggregate principal amount of debt redeemed | $ 1,500 | ||
Redemption price percentage | 103.156% |
DEBT (Details - Credit faciliti
DEBT (Details - Credit facilities) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Revolving Credit Facility [Member] | |
Schedule of Debt Instruments [Line Items] | |
Maximum borrowing capacity | $ 1,400,000,000 |
Line Of Credit Facility Current Borrowing Capacity | 636,000,000 |
Amount borrowed at period end | $ 57,000,000 |
Revolving Credit Facility [Member] | Minimum | |
Schedule of Debt Instruments [Line Items] | |
Debt instrument term | 1 year |
Revolving Credit Facility [Member] | Maximum | |
Schedule of Debt Instruments [Line Items] | |
Debt instrument term | 10 years |
5-Year Syndicated Facility | |
Schedule of Debt Instruments [Line Items] | |
Maximum borrowing capacity | $ 5,000,000,000 |
Remaining borrowing capacity | 4,500,000,000 |
Letter of credit sublimit | $ 500,000,000 |
Debt Instrument, Maturity Date | November 2026 |
Debt Instrument Effective Date | Nov. 19, 2021 |
Line Of Credit Facility Current Borrowing Capacity | $ 4,500,000,000 |
Amount borrowed at period end | $ 0 |
CONTINGENCIES, COMMITMENTS AN_3
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Contingencies, Commitments and Guarantees) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | |||
Right of use asset | $ 1,000 | $ 906 | |
Right of use asset, balance sheet location | Other assets | Other assets | |
Lease liability, balance sheet location | Other liabilities | Other liabilities | |
Lease payments | $ 231 | $ 252 | |
Leases, weighted average discount rate | 2.60% | ||
Leases, weighted average lease term | 10 years 7 months 6 days | ||
Rent expense | $ 237 | 258 | $ 232 |
Future undiscounted cash flows under operating leases | |||
2022 | 212 | ||
2023 | 178 | ||
2024 | 138 | ||
2025 | 111 | ||
2026 | 87 | ||
Remaining years after 2026 | 730 | ||
Total | 1,456 | ||
Less: Present value adjustment | (266) | ||
Net lease liabilities | 1,190 | 1,000 | |
Gain on sale leaseback | 200 | ||
Other commitments | 7,300 | ||
Amount outstanding under standby letters of credit at end of period | 74 | ||
Policyholder benefits and losses incurred | 24,388 | $ 24,806 | $ 25,402 |
Amount of policy issued to plaintiff's | 1 | ||
Fortitude [Member] | |||
Future undiscounted cash flows under operating leases | |||
Maximum purchase price adjustment payable | 500 | ||
Benefit recorded related to purchase price adjustment | $ 21 |
EQUITY (Details - Preferred Sto
EQUITY (Details - Preferred Stock) - USD ($) $ / shares in Units, $ in Millions | Dec. 30, 2021 | Dec. 15, 2021 | Sep. 30, 2021 | Sep. 15, 2021 | Jun. 29, 2021 | Jun. 15, 2021 | Mar. 30, 2021 | Mar. 15, 2021 | Dec. 28, 2020 | Dec. 15, 2020 | Sep. 30, 2020 | Sep. 15, 2020 | Jun. 29, 2020 | Jun. 15, 2020 | Mar. 30, 2020 | Mar. 16, 2020 | Dec. 26, 2019 | Dec. 16, 2019 | Sep. 30, 2019 | Sep. 16, 2019 | Jun. 28, 2019 | Jun. 17, 2019 | Mar. 29, 2019 | Mar. 14, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | |||||||||||||||||||||||||||
Issuances (in shares) | 6,853,070 | 3,719,970 | 3,389,602 | ||||||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 | |||||||||||||||||||||||||
Preferred stock liquidation preference | $ 500 | $ 500 | |||||||||||||||||||||||||
Issuance of preferred stock | $ 0 | $ 0 | $ 485 | ||||||||||||||||||||||||
Date dividends declared | Nov. 4, 2021 | Aug. 5, 2021 | May 6, 2021 | Feb. 16, 2021 | Nov. 5, 2020 | Aug. 3, 2020 | May 4, 2020 | Feb. 12, 2020 | Oct. 31, 2019 | Aug. 7, 2019 | May 6, 2019 | Feb. 13, 2019 | |||||||||||||||
Date of record | Dec. 16, 2021 | Sep. 16, 2021 | Jun. 15, 2021 | Mar. 16, 2021 | Dec. 14, 2020 | Sep. 17, 2020 | Jun. 15, 2020 | Mar. 16, 2020 | Dec. 12, 2019 | Sep. 17, 2019 | Jun. 14, 2019 | Mar. 15, 2019 | |||||||||||||||
Date dividends paid | Dec. 30, 2021 | Sep. 30, 2021 | Jun. 29, 2021 | Mar. 30, 2021 | Dec. 28, 2020 | Sep. 30, 2020 | Jun. 29, 2020 | Mar. 30, 2020 | Dec. 26, 2019 | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | |||||||||||||||
Series A Preferred Stock | |||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||
Issuances (in shares) | 20,000 | ||||||||||||||||||||||||||
Preferred stock, dividend rate (as a percent) | 5.85% | 5.85% | |||||||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ 5 | ||||||||||||||||||||||||||
Preferred stock liquidation preference | $ 25,000 | ||||||||||||||||||||||||||
Issuance of preferred stock | $ 485 | ||||||||||||||||||||||||||
Date dividends declared | Nov. 4, 2021 | Aug. 5, 2021 | May 6, 2021 | Feb. 16, 2021 | Nov. 5, 2020 | Aug. 3, 2020 | May 4, 2020 | Feb. 12, 2020 | Oct. 31, 2019 | Aug. 7, 2019 | May 21, 2019 | ||||||||||||||||
Date of record | Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Feb. 26, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | May 29, 2020 | Feb. 28, 2020 | Nov. 29, 2019 | Aug. 30, 2019 | May 31, 2019 | ||||||||||||||||
Date dividends paid | Dec. 15, 2021 | Sep. 15, 2021 | Jun. 15, 2021 | Mar. 15, 2021 | Dec. 15, 2020 | Sep. 15, 2020 | Jun. 15, 2020 | Mar. 16, 2020 | Dec. 16, 2019 | Sep. 16, 2019 | Jun. 17, 2019 | ||||||||||||||||
Preferred Stock Dividends Per Share Cash Paid | $ 365.625 | $ 365.625 | $ 365.625 | $ 365.625 | $ 365.625 | $ 365.625 | $ 365.625 | $ 365.625 | $ 365.625 | $ 365.625 | $ 369.6875 | ||||||||||||||||
Series A Preferred Stock | Rating Agency Event [Member] | |||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||
Preferred stock redemption terms | P90D | ||||||||||||||||||||||||||
Preferred stock redemption price per share | $ 25,500 | ||||||||||||||||||||||||||
Series A Preferred Stock | Regulatory Capital Event [Member] | |||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||
Preferred stock redemption price per share | $ 25,000 | ||||||||||||||||||||||||||
Series A Depositary Shares | |||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||
Preferred Stock Dividends Per Share Cash Paid | $ 0.365625 | $ 0.365625 | $ 0.365625 | $ 0.365625 | $ 0.365625 | $ 0.365625 | $ 0.365625 | $ 0.365625 | $ 0.365625 | $ 0.365625 | $ 0.3696875 |
EQUITY (Details - Common Stock
EQUITY (Details - Common Stock and Dividends) - USD ($) $ / shares in Units, $ in Millions | Dec. 30, 2021 | Sep. 30, 2021 | Jun. 29, 2021 | Mar. 30, 2021 | Dec. 28, 2020 | Sep. 30, 2020 | Jun. 29, 2020 | Mar. 30, 2020 | Dec. 26, 2019 | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
The following table presents a roll forward of outstanding shares: | |||||||||||||||
Shares, beginning of year | (1,045,113,443) | ||||||||||||||
Shares, beginning of year | 1,906,671,492 | ||||||||||||||
Shares, beginning of year | 861,558,049 | 869,999,031 | 866,609,429 | ||||||||||||
Shares issued | 6,853,070 | 3,719,970 | 3,389,602 | ||||||||||||
Shares repurchased | (49,723,756) | (12,160,952) | 0 | ||||||||||||
Shares, end of period | (1,087,984,129) | (1,045,113,443) | |||||||||||||
Shares, end of period | 1,906,671,492 | 1,906,671,492 | |||||||||||||
Shares, end of period | 818,687,363 | 861,558,049 | 869,999,031 | ||||||||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | |||||||||||||||
Date Dividends Declared | Nov. 4, 2021 | Aug. 5, 2021 | May 6, 2021 | Feb. 16, 2021 | Nov. 5, 2020 | Aug. 3, 2020 | May 4, 2020 | Feb. 12, 2020 | Oct. 31, 2019 | Aug. 7, 2019 | May 6, 2019 | Feb. 13, 2019 | |||
Date of Shareholders of Record | Dec. 16, 2021 | Sep. 16, 2021 | Jun. 15, 2021 | Mar. 16, 2021 | Dec. 14, 2020 | Sep. 17, 2020 | Jun. 15, 2020 | Mar. 16, 2020 | Dec. 12, 2019 | Sep. 17, 2019 | Jun. 14, 2019 | Mar. 15, 2019 | |||
Date Dividends To Be Paid | Dec. 30, 2021 | Sep. 30, 2021 | Jun. 29, 2021 | Mar. 30, 2021 | Dec. 28, 2020 | Sep. 30, 2020 | Jun. 29, 2020 | Mar. 30, 2020 | Dec. 26, 2019 | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | |||
Dividend paid (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | |||
Aggregate repurchases of common stock | $ 2,643 | $ 500 | $ 0 | ||||||||||||
Shares purchased | 50,000,000 | 12,000,000 | 0 | ||||||||||||
Aggregate repurchases of warrants | $ 0 | $ 0 | $ 0 | ||||||||||||
Total number of warrants repurchased | 0 | 0 | 0 | ||||||||||||
Common Stock Issued | |||||||||||||||
The following table presents a roll forward of outstanding shares: | |||||||||||||||
Shares, beginning of year | 1,906,671,492 | 1,906,671,492 | 1,906,671,492 | ||||||||||||
Shares issued | 0 | 0 | 0 | ||||||||||||
Shares repurchased | 0 | 0 | 0 | ||||||||||||
Shares, end of period | 1,906,671,492 | 1,906,671,492 | 1,906,671,492 | ||||||||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | |||||||||||||||
Aggregate repurchases of common stock | $ 0 | $ 0 | |||||||||||||
Treasury Stock | |||||||||||||||
The following table presents a roll forward of outstanding shares: | |||||||||||||||
Shares, beginning of year | (1,045,113,443) | (1,036,672,461) | (1,040,062,063) | ||||||||||||
Shares issued | 6,853,070 | 3,719,970 | 3,389,602 | ||||||||||||
Shares repurchased | (49,723,756) | (12,160,952) | 0 | ||||||||||||
Shares, end of period | (1,087,984,129) | (1,045,113,443) | (1,036,672,461) | ||||||||||||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | |||||||||||||||
Aggregate repurchases of common stock | $ 2,614 | $ 500 |
EQUITY (Details - Rollforward o
EQUITY (Details - Rollforward of Accumulated other comprehensive income (loss)) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 02, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period, net of tax | $ 13,511 | $ 4,982 | $ (1,413) | |
Change in unrealized appreciation (depreciation) of investments | (9,255) | 9,491 | 14,175 | |
Change in deferred policy acquisition costs adjustment and other | 871 | (1,316) | (1,856) | |
Change in future policy benefits | 917 | 2,408 | (4,462) | |
Changes in foreign currency translation adjustments | (117) | 303 | 135 | |
Change in net actuarial (gain) loss | 417 | (67) | (58) | |
Change in prior service cost (credit) | 8 | (18) | (2) | |
Change in deferred tax asset (liability) | 1,331 | (2,289) | (1,514) | |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | (2) | 1 | (3) | |
Other comprehensive income (loss) | (5,830) | 8,513 | 6,415 | |
Noncontrolling interests | (105) | (16) | 20 | |
SAFG 9.9% noncontrolling interest sale | (1,099) | |||
Balance, end of period, net of tax | 6,687 | 13,511 | 4,982 | |
Life and retirement subsidiaries | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Voting interest in subsidiary, percent | 9.90% | |||
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) | (5,725) | 8,529 | 6,395 | |
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Allowance for Credit Losses Were Taken | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period, net of tax | (95) | 0 | ||
Change in unrealized appreciation (depreciation) of investments | 58 | (133) | ||
Change in deferred policy acquisition costs adjustment and other | (14) | 11 | ||
Change in deferred tax asset (liability) | (9) | 27 | ||
Other comprehensive income (loss) | 35 | (95) | ||
SAFG 9.9% noncontrolling interest sale | 3 | |||
Balance, end of period, net of tax | (57) | (95) | 0 | |
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Other-Than-Temporary Credit Impairments Were Taken | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period, net of tax | 623 | (38) | ||
Change in unrealized appreciation (depreciation) of investments | 842 | |||
Change in deferred policy acquisition costs adjustment and other | 15 | |||
Change in deferred tax asset (liability) | (196) | |||
Other comprehensive income (loss) | 661 | |||
Balance, end of period, net of tax | 623 | |||
Unrealized Appreciation (Depreciation) of All Other Investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period, net of tax | 17,093 | 8,099 | 2,426 | |
Change in unrealized appreciation (depreciation) of investments | (9,313) | 9,624 | 13,333 | |
Change in deferred policy acquisition costs adjustment and other | 885 | (1,327) | (1,871) | |
Change in future policy benefits | 917 | 2,408 | (4,462) | |
Change in deferred tax asset (liability) | 1,510 | (2,351) | (1,311) | |
Other comprehensive income (loss) | (6,001) | 8,354 | 5,689 | |
Noncontrolling interests | (102) | (17) | 16 | |
SAFG 9.9% noncontrolling interest sale | (1,100) | |||
Balance, end of period, net of tax | 10,094 | 17,093 | 8,099 | |
Unrealized Appreciation (Depreciation) of All Other Investments | Adjusted balance | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period, net of tax | 8,722 | |||
Balance, end of period, net of tax | 8,722 | |||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period, net of tax | (2,267) | (2,625) | (2,725) | |
Changes in foreign currency translation adjustments | (117) | 303 | 135 | |
Change in deferred tax asset (liability) | (70) | 56 | (31) | |
Other comprehensive income (loss) | (187) | 359 | 104 | |
Noncontrolling interests | (3) | 1 | 4 | |
SAFG 9.9% noncontrolling interest sale | (2) | |||
Balance, end of period, net of tax | (2,453) | (2,267) | (2,625) | |
Retirement Plan Liabilities Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period, net of tax | (1,228) | (1,122) | (1,086) | |
Change in net actuarial (gain) loss | 417 | (67) | (58) | |
Change in prior service cost (credit) | 8 | (18) | (2) | |
Change in deferred tax asset (liability) | (100) | (21) | 24 | |
Other comprehensive income (loss) | 325 | (106) | (36) | |
SAFG 9.9% noncontrolling interest sale | 0 | |||
Balance, end of period, net of tax | (903) | (1,228) | (1,122) | |
Fair Value of Liabilities Under Fair Value Option Attributable to Changes in Own Credit Risk | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning of period, net of tax | 8 | 7 | 10 | |
Change in deferred tax asset (liability) | 0 | 0 | 0 | |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | (2) | 1 | (3) | |
Other comprehensive income (loss) | (2) | 1 | (3) | |
SAFG 9.9% noncontrolling interest sale | 0 | |||
Balance, end of period, net of tax | $ 6 | $ 8 | $ 7 |
EQUITY (Details - Other compreh
EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | $ (6,279) | $ 11,771 | $ 8,212 |
Less: Reclassification adjustments included in net income | 882 | 969 | 283 |
Total other comprehensive income (loss), before income tax expense (benefit) | (7,161) | 10,802 | 7,929 |
Less: Income tax expense (benefit) | (1,331) | 2,289 | 1,514 |
Other comprehensive income (loss) | (5,830) | 8,513 | 6,415 |
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 853 | ||
Less: Reclassification adjustments included in net income | (4) | ||
Total other comprehensive income (loss), before income tax expense (benefit) | 857 | ||
Less: Income tax expense (benefit) | 196 | ||
Other comprehensive income (loss) | 661 | ||
Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Allowance for Credit Losses Were Taken | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 44 | (161) | |
Less: Reclassification adjustments included in net income | 0 | (39) | |
Total other comprehensive income (loss), before income tax expense (benefit) | 44 | (122) | |
Less: Income tax expense (benefit) | 9 | (27) | |
Other comprehensive income (loss) | 35 | (95) | |
Unrealized Appreciation (Depreciation) of All Other Investments | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | (6,583) | 11,758 | 7,324 |
Less: Reclassification adjustments included in net income | 928 | 1,053 | 324 |
Total other comprehensive income (loss), before income tax expense (benefit) | (7,511) | 10,705 | 7,000 |
Less: Income tax expense (benefit) | (1,510) | 2,351 | 1,311 |
Other comprehensive income (loss) | (6,001) | 8,354 | 5,689 |
Foreign Currency Translation Adjustments | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | (117) | 303 | 135 |
Less: Reclassification adjustments included in net income | 0 | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | (117) | 303 | 135 |
Less: Income tax expense (benefit) | 70 | (56) | 31 |
Other comprehensive income (loss) | (187) | 359 | 104 |
Retirement Plan Liabilities Adjustment | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | 379 | (130) | (97) |
Less: Reclassification adjustments included in net income | (46) | (45) | (37) |
Total other comprehensive income (loss), before income tax expense (benefit) | 425 | (85) | (60) |
Less: Income tax expense (benefit) | 100 | 21 | (24) |
Other comprehensive income (loss) | 325 | (106) | (36) |
Fair Value of Liabilities Under Fair Value Option Attributable to Changes in Own Credit Risk | |||
Other Comprehensive Income (Loss) Reclassification Adjustments | |||
Unrealized change arising during period | (2) | 1 | (3) |
Less: Reclassification adjustments included in net income | 0 | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | (2) | 1 | (3) |
Less: Income tax expense (benefit) | 0 | 0 | 0 |
Other comprehensive income (loss) | $ (2) | $ 1 | $ (3) |
EQUITY (Details - Reclassificat
EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized gains | $ 2,151 | $ (2,238) | $ 632 |
Total | 882 | 969 | 283 |
Income (loss) from continuing operations before income tax expense (benefit) | 12,099 | (7,293) | 5,287 |
Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) from continuing operations before income tax expense (benefit) | 882 | 969 | 283 |
Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses were taken | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total | 0 | (39) | |
Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses were taken | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized gains | 0 | (39) | 0 |
Total | 0 | (39) | 0 |
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total | (4) | ||
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized gains | 0 | 0 | (4) |
Total | 0 | 0 | (4) |
Unrealized appreciation (depreciation) of all other investments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total | 928 | 1,053 | 324 |
Unrealized appreciation (depreciation) of all other investments | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized gains | 928 | 1,053 | 324 |
Income (loss) from continuing operations before income tax expense (benefit) | 928 | 1,053 | 324 |
Change in retirement plan liabilities adjustment | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total | (46) | (45) | (37) |
Change in retirement plan liabilities adjustment | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total | (46) | (45) | (37) |
Prior-Service Credit | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total | (3) | (1) | 0 |
Actuarial Gains (Losses) | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total | $ (43) | $ (44) | $ (37) |
EQUITY (Details - Changes in Ow
EQUITY (Details - Changes in Ownership Interest) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 02, 2021 | |
Minority Interest [Line Items] | ||||
Net income (loss) attributable to AIG common shareholders | $ 9,359 | $ (5,973) | $ 3,326 | |
Life And Retirement Subsidiaries [Member] | ||||
Minority Interest [Line Items] | ||||
Voting interest in subsidiary, percent | 9.90% | |||
Total consideration | $ 2,200 | |||
SAFG [Member] | ||||
Minority Interest [Line Items] | ||||
Net income (loss) attributable to AIG common shareholders | 9,359 | |||
Changes in AIG equity for sale of 9.9% interest in SAFG | (629) | |||
Change from Net income attributable to AIG common shareholders and changes in AIG's ownership interests | $ 8,730 |
EQUITY (Details - Narratives)
EQUITY (Details - Narratives) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity Class Of Treasury Stock [Line Items] | |||
Payments for Repurchase of Stock | $ 2,592 | $ 500 | $ 0 |
Shares purchased | 50 | 12 | 0 |
Aggregate repurchases of common stock | $ 2,643 | $ 500 | $ 0 |
Accelerated stock repurchase agreement | |||
Equity Class Of Treasury Stock [Line Items] | |||
Shares purchased | 18 | 12 | |
Aggregate repurchases of common stock | $ 1,000 | $ 500 | |
Exchange Act 10b5-1 Plan | |||
Equity Class Of Treasury Stock [Line Items] | |||
Shares purchased | 32 | ||
Proceeds from warrant exercises | $ 92 | ||
Aggregate repurchases of common stock | $ 1,600 |
EARNINGS PER COMMON SHARE (EP_3
EARNINGS PER COMMON SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator for EPS: | |||
Income (loss) from continuing operations | $ 9,923 | $ (5,833) | $ 4,121 |
Less: Net income (loss) from continuing operations attributable to noncontrolling interests | 535 | 115 | 821 |
Less: Preferred stock dividends | 29 | 29 | 22 |
Income (loss) attributable to AIG common shareholders from continuing operations | 9,359 | (5,977) | 3,278 |
Income from discontinued operations, net of income tax expense | 0 | 4 | 48 |
Net income (loss) attributable to AIG common shareholders | $ 9,359 | $ (5,973) | $ 3,326 |
Denominator for EPS: | |||
Weighted average common shares outstanding - basic | 854,320,449 | 869,309,458 | 876,750,264 |
Dilutive common shares | 10,564,430 | 0 | 12,761,682 |
Weighted average common shares outstanding - diluted | 864,884,879 | 869,309,458 | 889,511,946 |
Basic: | |||
Income (loss) from continuing operations | $ 10.95 | $ (6.88) | $ 3.74 |
Income from discontinued operations | 0 | 0 | 0.05 |
Income (loss) attributable to AIG common shareholders | 10.95 | (6.88) | 3.79 |
Diluted: | |||
Income (loss) from continuing operations | 10.82 | (6.88) | 3.69 |
Income (loss) from discontinued operations | 0 | 0 | 0.05 |
Income (loss) attributable to AIG common shareholders | $ 10.82 | $ (6.88) | $ 3.74 |
Dilutive shares excluded from computation of diluted earnings per share | 5,401,597 | ||
Number of shares excluded from diluted shares outstanding because the effect would have been anti-dilutive | 12,000,000 | 68,700,000 | 20,000,000 |
STATUTORY FINANCIAL DATA AND _3
STATUTORY FINANCIAL DATA AND RESTRICTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory capital and surplus and net income (loss) | |||
Increase (decrease) in the previously reported amount of statutory net income as a result of the finalization of statutory filings | $ (223) | ||
Increase (decrease) in the previously reported amount of statutory surplus as a result of the finalization of statutory filings | 55 | ||
Subsidiary Dividend Restrictions | |||
Statutory capital and surplus of consolidated insurance subsidiaries companies restricted from transfer to parent | $ 43,300 | ||
New York | |||
Subsidiary Dividend Restrictions | |||
Dividend restrictions, as percentage of statutory policyholders' surplus | 10.00% | ||
Dividend restrictions, as percentage of adjusted net investment income, as defined | 100.00% | ||
General Insurance Companies | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | $ 4,329 | 1,841 | $ 2,865 |
Statutory capital and surplus | 34,804 | 33,581 | |
Aggregate minimum required statutory capital and surplus | 11,698 | 11,291 | |
General Insurance Companies | Domestic | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 2,732 | 1,044 | 1,481 |
Statutory capital and surplus | 19,356 | 18,195 | |
Aggregate minimum required statutory capital and surplus | 4,032 | 3,862 | |
General Insurance Companies | Foreign | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 1,597 | 797 | 1,384 |
Statutory capital and surplus | 15,448 | 15,386 | |
Aggregate minimum required statutory capital and surplus | 7,666 | 7,429 | |
Life and Retirement companies | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 2,585 | 493 | 3,661 |
Statutory capital and surplus | 13,112 | 11,623 | |
Aggregate minimum required statutory capital and surplus | 4,064 | 3,781 | |
Statutory surplus and net income (loss) | |||
Permitted practice | 584 | 614 | |
Life and Retirement companies | Domestic | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | 2,586 | 482 | 325 |
Statutory capital and surplus | 12,485 | 10,960 | |
Aggregate minimum required statutory capital and surplus | 3,850 | 3,574 | |
Life and Retirement companies | Foreign | |||
Statutory capital and surplus and net income (loss) | |||
Statutory net income (loss) | (1) | 11 | $ 3,336 |
Statutory capital and surplus | 627 | 663 | |
Aggregate minimum required statutory capital and surplus | $ 214 | $ 207 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS (Details - Share based compensation expense) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SHARE-BASED COMPENSATION PLANS | |||
Share-based compensation expense - pre-tax | $ 278 | $ 274 | $ 314 |
Share-based compensation expense - after tax | 220 | 216 | 248 |
Vested stock-settled awards issued to retirement eligible employees | 67 | $ 63 | $ 82 |
Excess tax benefits due to share settlements | $ 16 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS (Details - Employee Plans, Share-settled Awards - assumptions used to estimate the fair value of PSUs) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 278 | $ 274 | $ 314 |
Performance share units | |||
Assumptions used to estimate the fair value of PSUs based on AIG's TSR | |||
Expected dividend yield (as a percent) | 0.00% | ||
Expected volatility (as a percent) | 47.63% | ||
Risk-free interest rate (as a percent) | 0.28% | ||
Historical volatility term | 2 years 9 months 21 days | ||
Performance share units | Maximum | |||
Assumptions used to estimate the fair value of PSUs based on AIG's TSR | |||
Continuously compounded rates term | 3 years | ||
Performance share units | Minimum | |||
Assumptions used to estimate the fair value of PSUs based on AIG's TSR | |||
Continuously compounded rates term | 2 years | ||
Deferred stock units (DSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted under the plans | 55,133 | 94,062 | 49,706 |
Compensation expense | $ 2.7 | $ 2.4 | $ 2.6 |
2013 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for future grant | 45,000,000 | ||
Number of shares reserved for future grants | 24,343,068 | ||
Reduction in the number of shares available for grants | 1 | ||
2021 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional shares authorized | 8,100,000 | ||
AIG 2013 Long Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
AIG 2013 Long Term Incentive Plan | Maximum | 2018 to 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance period depending on which actual number of awards can be earned | 200.00% | ||
AIG 2013 Long Term Incentive Plan | Minimum | 2018 to 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance period depending on which actual number of awards can be earned | 0.00% |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS (Details - Share-settled Awards - Outstanding share-settled awards) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020USD ($)item | Jun. 30, 2020item | Sep. 30, 2019 | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | |
Minimum | ||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | ||||||
Weighted-Average Period | 1 year 1 month 24 days | |||||
Maximum | ||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | ||||||
Weighted-Average Period | 4 years | |||||
RSUs | ||||||
Change in number of shares | ||||||
Unvested, beginning of year (in shares) | shares | 1,151,380 | 1,231,185 | 1,634,610 | |||
Granted (in shares) | shares | 493,140 | 583,068 | 399,779 | |||
Vested (in shares) | shares | (699,067) | (535,220) | (774,350) | |||
Forfeited (in shares) | shares | (125,813) | (127,653) | (28,854) | |||
Unvested, end of year (in shares) | shares | 819,640 | 1,151,380 | 1,231,185 | |||
Change in Weighted Average Grant-Date Fair Value | ||||||
Unvested, beginning of year (in dollars per share) | $ / shares | $ 46.18 | $ 54.17 | $ 56.11 | |||
Granted (in dollars per share) | $ / shares | 49.36 | 35.54 | 52.40 | |||
Vested (in dollars per share) | $ / shares | 50.03 | 50.89 | 57.32 | |||
Forfeited (in dollars per share) | $ / shares | 51.80 | 54.90 | 55.23 | |||
Unvested, end of year (in dollars per share) | $ / shares | $ 43.95 | $ 46.18 | $ 54.17 | |||
RSUs | Minimum | ||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | ||||||
Weighted-Average Period | 1 year | |||||
RSUs | Maximum | ||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | ||||||
Weighted-Average Period | 3 years | |||||
LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Modified cap payout percent | 100.00% | |||||
Performance period | 3 years | |||||
Net credit to compensation expense | $ | $ 4 | |||||
2018 LTI | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance goal metrics | item | 2 | 3 | ||||
2019 LTI | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance goal metrics | item | 2 | 3 | ||||
2019 LTI | PSUs | ||||||
Change in number of shares | ||||||
Unvested, beginning of year (in shares) | shares | 3,497,419 | |||||
Granted (in shares) | shares | 0 | |||||
Vested (in shares) | shares | (3,174,495) | |||||
Forfeited (in shares) | shares | (322,924) | |||||
Unvested, end of year (in shares) | shares | 0 | 3,497,419 | ||||
Change in Weighted Average Grant-Date Fair Value | ||||||
Unvested, beginning of year (in dollars per share) | $ / shares | $ 44.79 | |||||
Granted (in dollars per share) | $ / shares | 0 | |||||
Vested (in dollars per share) | $ / shares | 44.76 | |||||
Forfeited (in dollars per share) | $ / shares | 44.85 | |||||
Unvested, end of year (in dollars per share) | $ / shares | $ 0 | $ 44.79 | ||||
2020 LTI | PSUs | ||||||
Change in number of shares | ||||||
Unvested, beginning of year (in shares) | shares | 5,348,656 | |||||
Granted (in shares) | shares | 0 | |||||
Vested (in shares) | shares | (771,594) | |||||
Forfeited (in shares) | shares | (410,568) | |||||
Unvested, end of year (in shares) | shares | 4,166,494 | 5,348,656 | ||||
Change in Weighted Average Grant-Date Fair Value | ||||||
Unvested, beginning of year (in dollars per share) | $ / shares | $ 31.33 | |||||
Granted (in dollars per share) | $ / shares | 0 | |||||
Vested (in dollars per share) | $ / shares | 30.57 | |||||
Forfeited (in dollars per share) | $ / shares | 31.79 | |||||
Unvested, end of year (in dollars per share) | $ / shares | $ 31.43 | $ 31.33 | ||||
2021 LTI | PSUs | ||||||
Change in number of shares | ||||||
Unvested, beginning of year (in shares) | shares | 0 | |||||
Granted (in shares) | shares | 5,948,029 | |||||
Vested (in shares) | shares | (1,344,917) | |||||
Forfeited (in shares) | shares | (214,678) | |||||
Unvested, end of year (in shares) | shares | 4,388,434 | 0 | ||||
Change in Weighted Average Grant-Date Fair Value | ||||||
Unvested, beginning of year (in dollars per share) | $ / shares | $ 0 | |||||
Granted (in dollars per share) | $ / shares | 44.96 | |||||
Vested (in dollars per share) | $ / shares | 44.90 | |||||
Forfeited (in dollars per share) | $ / shares | 44.60 | |||||
Unvested, end of year (in dollars per share) | $ / shares | $ 45 | $ 0 | ||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | ||||||
Unrecognized Compensation Cost | $ | $ 185 | |||||
Weighted-Average Period | 11 months 12 days | |||||
Expected Period | 2 years |
SHARE-BASED COMPENSATION PLAN_5
SHARE-BASED COMPENSATION PLANS (Details - Roll forward of stock option activity) - USD ($) $ / shares in Units, $ in Millions | Dec. 30, 2021 | Sep. 30, 2021 | Jun. 29, 2021 | Mar. 30, 2021 | Dec. 28, 2020 | Sep. 30, 2020 | Jun. 29, 2020 | Mar. 30, 2020 | Dec. 26, 2019 | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares granted under the plans | 2,674,353 | ||||||||||||||
Weighted average assumptions used to estimate the fair value | |||||||||||||||
Dividend paid (in dollars per share) | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | $ 0.32 | |||
Stock options activity | |||||||||||||||
Outstanding at beginning of year (in shares) | 11,429,491 | ||||||||||||||
Granted (in shares) | 2,674,353 | ||||||||||||||
Exercised (in shares) | (674,216) | ||||||||||||||
Forfeited or expired (in shares) | (408,201) | ||||||||||||||
Outstanding at end of year (in shares) | 13,021,427 | 11,429,491 | |||||||||||||
Units, Exercisable, end of year (in shares) | 4,047,524 | ||||||||||||||
Stock options, Weighted Average Exercise Price | |||||||||||||||
Outstanding at beginning of year (in dollars per share) | $ 47.67 | ||||||||||||||
Granted (in dollars per share) | 44.23 | ||||||||||||||
Exercised (in dollars per share) | 46.16 | ||||||||||||||
Forfeited or expired (in dollars per share) | 45.13 | ||||||||||||||
Outstanding at end of year (in dollars per share) | 47.12 | $ 47.67 | |||||||||||||
Excercisable, end of year (in dollars per share) | $ 52.88 | ||||||||||||||
Stock options, Weighted Average Remaining Contractual Life | |||||||||||||||
Weighted Average Remaining Contractual Life, Outstanding End of year | 7 years 3 months 25 days | 7 years 7 months 2 days | |||||||||||||
Weighted Average Remaining Contractual Life, Exercisable, End of year | 6 years 3 months 7 days | ||||||||||||||
Aggregate intrinsic value, Outstanding, end of year | $ 142 | ||||||||||||||
Aggregate intrinsic value, Excerciable, end of year | 21 | ||||||||||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||||||||||||||
Compensation expense | 278 | $ 274 | $ 314 | ||||||||||||
Restricted stock expense | 18.7 | ||||||||||||||
Total unrecognized compensation costs | $ 24 | ||||||||||||||
Minimum [Member] | |||||||||||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||||||||||||||
Weighted-Average Period | 1 year 1 month 24 days | ||||||||||||||
Maximum [Member] | |||||||||||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||||||||||||||
Weighted-Average Period | 4 years | ||||||||||||||
Deferred stock units (DSUs) | |||||||||||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||||||||||||||
Compensation expense | $ 2.7 | $ 2.4 | $ 2.6 | ||||||||||||
Stock Options | |||||||||||||||
Weighted average assumptions used to estimate the fair value | |||||||||||||||
Expected annual dividend yield (as a percent) | 2.89% | 3.97% | 2.86% | ||||||||||||
Expected volatility (as a percent) | 36.68% | 42.03% | 23.17% | ||||||||||||
Risk-free interest rate (as a percent) | 0.95% | 0.57% | 2.47% | ||||||||||||
Expected term | 6 years 5 months 4 days | 6 years 4 months 20 days | 6 years 4 months 17 days | ||||||||||||
Trading Period on Which Historical Valuation is Based by Bloomberg Professional Service | 24 months | ||||||||||||||
Stock options, Weighted Average Remaining Contractual Life | |||||||||||||||
Weighted average grant-date fair value of stock options granted | $ 10 | $ 9.61 | $ 10.01 | ||||||||||||
Total unrecognized compensation cost (net of expected forfeitures) and the weighted-average periods over which those costs are expected to be recognized | |||||||||||||||
Compensation expense | $ 29.2 | ||||||||||||||
Unrecognized Compensation Cost | $ 21 | ||||||||||||||
Expected Period | 2 years | ||||||||||||||
Stock Options | Minimum [Member] | |||||||||||||||
Weighted average assumptions used to estimate the fair value | |||||||||||||||
Contractual term of the option | P7Y | ||||||||||||||
Stock Options | Maximum [Member] | |||||||||||||||
Weighted average assumptions used to estimate the fair value | |||||||||||||||
Contractual term of the option | P10Y |
EMPLOYEE BENEFITS (Details - Pe
EMPLOYEE BENEFITS (Details - Pension and Postretirement Plans) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pensions | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Annual pay credit percentage to be applied to participant's cash balance | 6.00% | ||
Unreduced benefits, maximum services credited | 44 years | ||
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | $ 5,410 | $ 4,972 | |
Service cost | 5 | 5 | $ 5 |
Interest cost | 92 | 134 | 176 |
Actuarial (gain) loss | (384) | 612 | |
Benefits paid: | |||
AIG assets | (18) | (17) | |
Plan assets | (174) | (294) | |
Plan amendment | 0 | 0 | |
Curtailments | 0 | 0 | |
Settlements | (135) | 0 | |
Foreign exchange effect | 0 | 0 | |
Other | (1) | (2) | |
Projected benefit obligation, end of year | 4,795 | 5,410 | 4,972 |
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 4,931 | 4,465 | |
Actual return on plan assets, net of expenses | 124 | 760 | |
AIG contributions | 18 | 17 | |
AIG assets | (18) | (17) | |
Plan assets | (174) | (294) | |
Settlements | (135) | 0 | |
Foreign exchange effect | 0 | 0 | |
Fair value of plan assets, end of year | 4,746 | 4,931 | 4,465 |
Funded status, end of year | (49) | (479) | |
Amounts recognized in the consolidated balance sheet: | |||
Assets | 198 | 0 | |
Liabilities | (247) | (479) | |
Total amounts recognized | (49) | (479) | |
Pre-tax amounts recognized in Accumulated other comprehensive income (loss): | |||
Net gain (loss) | (1,162) | (1,493) | |
Prior service (cost) credit | 0 | 0 | |
Total amounts recognized | (1,162) | (1,493) | |
Projected benefit obligation | 4,795 | 5,410 | 4,972 |
Net benefit expense | (79) | (67) | (13) |
Pensions | U.S. | Nonqualified Plan [Member] | Unfunded Plan | |||
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | 282 | ||
Benefits paid: | |||
Projected benefit obligation, end of year | 247 | 282 | |
Pre-tax amounts recognized in Accumulated other comprehensive income (loss): | |||
Projected benefit obligation | 247 | 282 | |
Pensions | Non U.S. Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | 1,231 | 1,174 | |
Service cost | 21 | 21 | 21 |
Interest cost | 9 | 10 | 15 |
Actuarial (gain) loss | 10 | 1 | |
Benefits paid: | |||
AIG assets | (9) | (9) | |
Plan assets | (30) | (21) | |
Plan amendment | 0 | 18 | |
Curtailments | 0 | 0 | |
Settlements | (9) | (24) | |
Foreign exchange effect | (66) | 60 | |
Other | 0 | 1 | |
Projected benefit obligation, end of year | 1,157 | 1,231 | 1,174 |
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 977 | 899 | |
Actual return on plan assets, net of expenses | 77 | 37 | |
AIG contributions | 48 | 49 | |
AIG assets | (9) | (9) | |
Plan assets | (30) | (21) | |
Settlements | (9) | (24) | |
Foreign exchange effect | (58) | 46 | |
Fair value of plan assets, end of year | 996 | 977 | 899 |
Funded status, end of year | (161) | (254) | |
Amounts recognized in the consolidated balance sheet: | |||
Assets | 84 | 73 | |
Liabilities | (245) | (327) | |
Total amounts recognized | (161) | (254) | |
Pre-tax amounts recognized in Accumulated other comprehensive income (loss): | |||
Net gain (loss) | (119) | (178) | |
Prior service (cost) credit | (34) | (40) | |
Total amounts recognized | (153) | (218) | |
Projected benefit obligation | 1,157 | 1,231 | 1,174 |
Net benefit expense | 20 | 23 | 20 |
Pensions | Non U.S. Plans | Nonqualified Plan [Member] | Unfunded Plan | |||
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | 243 | ||
Benefits paid: | |||
Projected benefit obligation, end of year | 204 | 243 | |
Pre-tax amounts recognized in Accumulated other comprehensive income (loss): | |||
Projected benefit obligation | $ 204 | 243 | |
Postretirement Plans | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Requisite service period to participate in the plan | 10 years | ||
Eligibility age | 55 years | ||
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | $ 191 | 181 | |
Service cost | 1 | 1 | 1 |
Interest cost | 3 | 5 | 6 |
Actuarial (gain) loss | (10) | 17 | |
Benefits paid: | |||
AIG assets | (11) | (13) | |
Plan assets | 0 | 0 | |
Plan amendment | 0 | 0 | |
Curtailments | 0 | 0 | |
Settlements | 0 | 0 | |
Foreign exchange effect | 0 | 0 | |
Other | 0 | 0 | |
Projected benefit obligation, end of year | 174 | 191 | 181 |
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 0 | 0 | |
Actual return on plan assets, net of expenses | 0 | 0 | |
AIG contributions | 11 | 13 | |
AIG assets | (11) | (13) | |
Plan assets | 0 | 0 | |
Settlements | 0 | 0 | |
Foreign exchange effect | 0 | 0 | |
Fair value of plan assets, end of year | 0 | 0 | 0 |
Funded status, end of year | (174) | (191) | |
Amounts recognized in the consolidated balance sheet: | |||
Assets | 0 | 0 | |
Liabilities | (174) | (191) | |
Total amounts recognized | (174) | (191) | |
Pre-tax amounts recognized in Accumulated other comprehensive income (loss): | |||
Net gain (loss) | 3 | (7) | |
Prior service (cost) credit | 0 | 0 | |
Total amounts recognized | 3 | (7) | |
Projected benefit obligation | 174 | 191 | 181 |
Net benefit expense | 4 | 6 | 6 |
Postretirement Plans | Non U.S. Plans | |||
Change in projected benefit obligation: | |||
Benefit obligation, beginning of year | 71 | 61 | |
Service cost | 1 | 1 | 1 |
Interest cost | 2 | 2 | 2 |
Actuarial (gain) loss | (17) | 8 | |
Benefits paid: | |||
AIG assets | (1) | (1) | |
Plan assets | 0 | 0 | |
Plan amendment | (2) | 0 | |
Curtailments | (7) | 0 | |
Settlements | 0 | 0 | |
Foreign exchange effect | 0 | 0 | |
Other | 0 | 0 | |
Projected benefit obligation, end of year | 47 | 71 | 61 |
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 0 | 0 | |
Actual return on plan assets, net of expenses | 0 | 0 | |
AIG contributions | 1 | 1 | |
AIG assets | (1) | (1) | |
Plan assets | 0 | 0 | |
Settlements | 0 | 0 | |
Foreign exchange effect | 0 | 0 | |
Fair value of plan assets, end of year | 0 | 0 | 0 |
Funded status, end of year | (47) | (71) | |
Amounts recognized in the consolidated balance sheet: | |||
Assets | 0 | 0 | |
Liabilities | (47) | (71) | |
Total amounts recognized | (47) | (71) | |
Pre-tax amounts recognized in Accumulated other comprehensive income (loss): | |||
Net gain (loss) | 11 | (14) | |
Prior service (cost) credit | 2 | 0 | |
Total amounts recognized | 13 | (14) | |
Projected benefit obligation | 47 | 71 | 61 |
Net benefit expense | $ 4 | $ 2 | $ 1 |
Medical Coverage | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Requisite service period to participate in the plan | 5 years |
EMPLOYEE BENEFITS (Details - Ac
EMPLOYEE BENEFITS (Details - Accumulated benefit obligations for U.S. and non-U.S. pension benefit plans) - Pensions - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 4,795 | $ 5,410 |
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 247 | 5,410 |
Fair value of plan assets | 0 | 4,931 |
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets | ||
Accumulated benefit obligation | 247 | 5,410 |
Fair value of plan assets | 0 | 4,931 |
Non U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 1,141 | 1,213 |
Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets | ||
Projected benefit obligation | 897 | 1,019 |
Fair value of plan assets | 605 | 620 |
Defined benefit pension plan obligations in which the accumulated benefit obligation was in excess of the related plan assets | ||
Accumulated benefit obligation | 836 | 931 |
Fair value of plan assets | $ 605 | $ 620 |
EMPLOYEE BENEFITS (Details - Co
EMPLOYEE BENEFITS (Details - Components of net periodic benefit cost) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pensions | |||
Pension expense and effect of change in pension expense due to change in discount rate or expected long-term rate of return | |||
Increase in expense due to decrease of 100 basis point in discount rate | $ 11 | ||
Increase in expense due to decrease of 100 basis point in expected long-term rate of return | 56 | ||
Decrease in expense due to increase of 100 basis point in discount rate | 6 | ||
Decrease in expense due to increase of 100 basis point in expected long-term rate of return | 56 | ||
Pensions | U.S. | |||
Components of net periodic benefit cost: | |||
Service cost | 5 | $ 5 | $ 5 |
Interest cost | 92 | 134 | 176 |
Expected return on assets | (243) | (239) | (229) |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Amortization of net (gain) loss | 33 | 33 | 35 |
Net periodic benefit cost (credit) | (113) | (67) | (13) |
Settlement (credit) charges | 34 | 0 | 0 |
Net benefit cost (credit) | (79) | (67) | (13) |
Total recognized in Accumulated other comprehensive income (loss) | 332 | (57) | 14 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 411 | 10 | 27 |
Pensions | Non U.S. Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 21 | 21 | 21 |
Interest cost | 9 | 10 | 15 |
Expected return on assets | (21) | (21) | (21) |
Amortization of prior service cost (credit) | 3 | 2 | 2 |
Amortization of net (gain) loss | 7 | 8 | 5 |
Net periodic benefit cost (credit) | 19 | 20 | 22 |
Settlement (credit) charges | 1 | 3 | (2) |
Net benefit cost (credit) | 20 | 23 | 20 |
Total recognized in Accumulated other comprehensive income (loss) | 65 | (1) | (45) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 45 | (24) | (65) |
Postretirement Plans | U.S. | |||
Components of net periodic benefit cost: | |||
Service cost | 1 | 1 | 1 |
Interest cost | 3 | 5 | 6 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Amortization of net (gain) loss | 0 | 0 | (1) |
Net periodic benefit cost (credit) | 4 | 6 | 6 |
Settlement (credit) charges | 0 | 0 | 0 |
Net benefit cost (credit) | 4 | 6 | 6 |
Total recognized in Accumulated other comprehensive income (loss) | 10 | (17) | (17) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 6 | (23) | (23) |
Postretirement Plans | Non U.S. Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 1 | 1 | 1 |
Interest cost | 2 | 2 | 2 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | (1) | (2) |
Amortization of net (gain) loss | 1 | 0 | 0 |
Net periodic benefit cost (credit) | 4 | 2 | 1 |
Settlement (credit) charges | 0 | 0 | 0 |
Net benefit cost (credit) | 4 | 2 | 1 |
Total recognized in Accumulated other comprehensive income (loss) | 27 | (9) | (10) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 23 | $ (11) | $ (11) |
EMPLOYEE BENEFITS (Details - We
EMPLOYEE BENEFITS (Details - Weighted average assumptions used to determine the benefit obligations) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Shares of common stock included in retirement plan assets | 0 | 0 | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Expected return on assets (as a percent) | 5.15% | 5.55% | |
Non U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Shares of common stock included in retirement plan assets | 0 | 0 | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Expected return on assets (as a percent) | 2.23% | 2.32% | |
Pension | U.S. | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 2.75% | 2.28% | |
Interest crediting rate | 2.06% | 1.57% | |
Assumed health care cost trend rates | |||
Ultimate rate to which cost increase is assumed to decline (as a percent) | 4.00% | 4.50% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 2.28% | 3.16% | 4.22% |
Interest crediting rate | 1.57% | 2.19% | 3.34% |
Expected return on assets (as a percent) | 5.15% | 5.55% | 6.20% |
Pension | U.S. | Medical (before age 65) | |||
Assumed health care cost trend rates | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 5.45% | 5.55% | |
Year in which the ultimate trend rate is reached: | 2046 | 2038 | |
Pension | U.S. | Medical (age 65 and older) | |||
Assumed health care cost trend rates | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 4.98% | 5.00% | |
Year in which the ultimate trend rate is reached: | 2046 | 2038 | |
Pension | Non U.S. Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 1.09% | 1.00% | |
Interest crediting rate | 0.70% | 0.72% | |
Rate of compensation increase (as a percent) | 2.40% | 2.28% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 1.00% | 1.09% | 1.71% |
Interest crediting rate | 0.72% | 0.44% | 0.74% |
Rate of compensation increase (as a percent) | 2.28% | 2.22% | 2.27% |
Expected return on assets (as a percent) | 2.23% | 2.32% | 2.51% |
Pension | AIG Japan pension plans | |||
Discount Rate Methodology | |||
Projected benefit obligation to total projected benefit obligations (as a percent) | 50.00% | 51.00% | |
Weighted average discount rate (as a percent) | 0.52% | 0.56% | |
Postretirement Plans | U.S. | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 2.87% | 2.25% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 2.45% | 3.14% | 4.17% |
Postretirement Plans | Non U.S. Plans | |||
Weighted average assumptions used to determine the benefit obligations: | |||
Discount rate (as a percent) | 2.89% | 2.33% | |
Weighted average assumptions used to determine the net periodic benefit costs: | |||
Discount rate (as a percent) | 2.33% | 3.18% | 4.12% |
Rate of compensation increase (as a percent) | 3.00% | 3.00% |
EMPLOYEE BENEFITS (Details - As
EMPLOYEE BENEFITS (Details - Asset allocations by major asset class) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 100.00% | |
Actual allocation (as a percent) | 100.00% | 100.00% |
Expected weighted average long-term rate of return plan assets (as a percent) | 5.15% | 5.55% |
U.S. | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 15.00% | |
Actual allocation (as a percent) | 15.00% | 25.00% |
U.S. | Fixed maturity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 75.00% | |
Actual allocation (as a percent) | 71.00% | 57.00% |
U.S. | Other Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 10.00% | |
Actual allocation (as a percent) | 14.00% | 18.00% |
Non U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 100.00% | |
Actual allocation (as a percent) | 100.00% | 100.00% |
Expected weighted average long-term rate of return plan assets (as a percent) | 2.23% | 2.32% |
Non U.S. Plans | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 20.00% | |
Actual allocation (as a percent) | 24.00% | 22.00% |
Non U.S. Plans | Fixed maturity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 57.00% | |
Actual allocation (as a percent) | 44.00% | 45.00% |
Non U.S. Plans | Other Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 20.00% | |
Actual allocation (as a percent) | 24.00% | 24.00% |
Non U.S. Plans | Cash & cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target allocation (as a percent) | 3.00% | |
Actual allocation (as a percent) | 8.00% | 9.00% |
Pensions | AIG Japan pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation (as a percent) | 61.00% | 61.00% |
Expected weighted average long-term rate of return plan assets (as a percent) | 1.85% | 1.84% |
EMPLOYEE BENEFITS (Details - _2
EMPLOYEE BENEFITS (Details - Assets Measured at Fair Value) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair value measured at NAV per share | Other Investment Types | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 943 | $ 1,232 | |
Pensions | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,746 | 4,931 | $ 4,465 |
Pensions | U.S. | Levels 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,803 | 3,699 | |
Pensions | U.S. | Levels 1, 2 and 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 118 | 247 | |
Pensions | U.S. | Levels 1, 2 and 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 301 | 459 | |
Pensions | U.S. | Levels 1, 2 and 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 183 | |
Pensions | U.S. | Levels 1, 2 and 3 | Fixed maturity securities: U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,901 | 2,227 | |
Pensions | U.S. | Levels 1, 2 and 3 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 302 | 237 | |
Pensions | U.S. | Levels 1, 2 and 3 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 90 | 282 | |
Pensions | U.S. | Levels 1, 2 and 3 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 56 | 49 | |
Pensions | U.S. | Levels 1, 2 and 3 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | ||
Pensions | U.S. | Levels 1, 2 and 3 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | (4) | |
Pensions | U.S. | Levels 1, 2 and 3 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 6 | |
Pensions | U.S. | Levels 1, 2 and 3 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 13 | |
Pensions | U.S. | Levels 1, 2 and 3 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 459 | 892 | |
Pensions | U.S. | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 118 | 247 | |
Pensions | U.S. | Level 1 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 301 | 459 | |
Pensions | U.S. | Level 1 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9 | 183 | |
Pensions | U.S. | Level 1 | Fixed maturity securities: U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 27 | 0 | |
Pensions | U.S. | Level 1 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | U.S. | Level 1 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 3 | |
Pensions | U.S. | Level 1 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 1 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,319 | 2,791 | |
Pensions | U.S. | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 2 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 2 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 2 | Fixed maturity securities: U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,858 | 2,217 | |
Pensions | U.S. | Level 2 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 302 | 237 | |
Pensions | U.S. | Level 2 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 90 | 282 | |
Pensions | U.S. | Level 2 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 55 | 49 | |
Pensions | U.S. | Level 2 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | ||
Pensions | U.S. | Level 2 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | (7) | |
Pensions | U.S. | Level 2 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 2 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11 | 13 | |
Pensions | U.S. | Level 2 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 25 | 16 | 20 |
Pensions | U.S. | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Fixed maturity securities: U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16 | 10 | 9 |
Pensions | U.S. | Level 3 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 0 | |
Pensions | U.S. | Level 3 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | U.S. | Level 3 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8 | 6 | 11 |
Pensions | U.S. | Level 3 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | U.S. | Level 3 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 996 | 977 | 899 |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 996 | 977 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 84 | 83 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 239 | 213 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Fixed maturity securities: U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 180 | 174 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 239 | 269 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19 | ||
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 171 | 179 | |
Pensions | Non U.S. Plans | Levels 1, 2 and 3 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 64 | 59 | |
Pensions | Non U.S. Plans | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 269 | 238 | |
Pensions | Non U.S. Plans | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 84 | 83 | |
Pensions | Non U.S. Plans | Level 1 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 185 | 155 | |
Pensions | Non U.S. Plans | Level 1 | Fixed maturity securities: U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | Non U.S. Plans | Level 1 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 1 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 556 | 560 | |
Pensions | Non U.S. Plans | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 54 | 58 | |
Pensions | Non U.S. Plans | Level 2 | Fixed maturity securities: U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 180 | 174 | |
Pensions | Non U.S. Plans | Level 2 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 239 | 269 | |
Pensions | Non U.S. Plans | Level 2 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19 | ||
Pensions | Non U.S. Plans | Level 2 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 2 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 64 | 59 | |
Pensions | Non U.S. Plans | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 171 | 179 | 160 |
Pensions | Non U.S. Plans | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Equity securities - U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Equity securities - International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Fixed maturity securities: U.S. investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Fixed maturity securities - International investment grade | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Fixed maturity securities - U.S. and international high yield | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Mortgage-backed, asset-backed and collateralized | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Other fixed maturity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Pensions | Non U.S. Plans | Level 3 | Other investment types - Futures | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Other investment types - Direct private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pensions | Non U.S. Plans | Level 3 | Other investment types - Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 171 | 179 | $ 160 |
Pensions | Non U.S. Plans | Level 3 | Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
EMPLOYEE BENEFITS (Details - Ch
EMPLOYEE BENEFITS (Details - Changes in Level 3 fair value measurements) - Pensions - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | $ 4,931 | $ 4,465 |
Fair value of plan assets, end of year | 4,746 | 4,931 |
U.S. | Level 3 | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 16 | 20 |
Net Realized and Unrealized Gains (Losses) | 2 | (2) |
Purchases | 6 | 0 |
Sales | (4) | (2) |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 5 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 25 | 16 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 1 | (3) |
U.S. | Level 3 | Other comprehensive income | ||
Changes in Level 3 fair value measurements | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | 0 |
U.S. | Level 3 | Fixed maturity securities: U.S. investment grade | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 10 | 9 |
Net Realized and Unrealized Gains (Losses) | 0 | 1 |
Purchases | 5 | 0 |
Sales | (4) | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 5 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 16 | 10 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | 0 |
U.S. | Level 3 | Fixed maturity securities: U.S. investment grade | Other comprehensive income | ||
Changes in Level 3 fair value measurements | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | 0 |
U.S. | Level 3 | Direct private equity | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 6 | 11 |
Net Realized and Unrealized Gains (Losses) | 2 | (3) |
Purchases | 0 | 0 |
Sales | 0 | (2) |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 8 | 6 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 1 | (3) |
U.S. | Level 3 | Direct private equity | Other comprehensive income | ||
Changes in Level 3 fair value measurements | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | 0 |
U.S. | Level 3 | Mortgage-backed, asset-backed and collateralized | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Net Realized and Unrealized Gains (Losses) | 0 | |
Purchases | 1 | |
Sales | 0 | |
Settlements | 0 | |
Issuances | 0 | |
Transfers In | 0 | |
Transfers Out | 0 | |
Fair value of plan assets, end of year | 1 | 0 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | |
U.S. | Level 3 | Mortgage-backed, asset-backed and collateralized | Other comprehensive income | ||
Changes in Level 3 fair value measurements | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | |
U.S. | Level 3 | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Fair value of plan assets, end of year | 0 | 0 |
Non U.S. Plans | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 977 | 899 |
Fair value of plan assets, end of year | 996 | 977 |
Non U.S. Plans | Level 3 | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 179 | 160 |
Net Realized and Unrealized Gains (Losses) | (9) | 18 |
Purchases | 1 | 1 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 171 | 179 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | 0 |
Non U.S. Plans | Level 3 | Other comprehensive income | ||
Changes in Level 3 fair value measurements | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | 0 |
Non U.S. Plans | Level 3 | Fixed maturity securities: U.S. investment grade | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Fair value of plan assets, end of year | 0 | 0 |
Non U.S. Plans | Level 3 | Direct private equity | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Fair value of plan assets, end of year | 0 | 0 |
Non U.S. Plans | Level 3 | Mortgage-backed, asset-backed and collateralized | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 0 | |
Fair value of plan assets, end of year | 0 | 0 |
Non U.S. Plans | Level 3 | Insurance contracts | ||
Changes in Level 3 fair value measurements | ||
Fair value of plan assets, beginning of year | 179 | 160 |
Net Realized and Unrealized Gains (Losses) | (9) | 18 |
Purchases | 1 | 1 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Issuances | 0 | 0 |
Transfers In | 0 | 0 |
Transfers Out | 0 | 0 |
Fair value of plan assets, end of year | 171 | 179 |
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | 0 | 0 |
Non U.S. Plans | Level 3 | Insurance contracts | Other comprehensive income | ||
Changes in Level 3 fair value measurements | ||
Changes in Unrealized Gains (Losses) on Instruments Held at End of Year | $ 0 | $ 0 |
EMPLOYEE BENEFITS (Details - Ex
EMPLOYEE BENEFITS (Details - Expected Cash Flows) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Expected future benefit payments, net of participants' contributions | |||
Percentage of employer's contribution on employee's matching contribution | 100.00% | ||
Change in percentage of employer's contribution on employee's matching contribution | 6.00% | ||
Company's maximum contribution as percentage of employee's annual salary | 3.00% | ||
Pre-tax expenses associated with these plans | $ 183,000,000 | $ 188,000,000 | $ 195,000,000 |
Pensions | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated employer contribution | 65,000,000 | ||
Pensions | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum required cash contributions | 0 | ||
AIG contributions | 18,000,000 | 17,000,000 | |
Expected future benefit payments, net of participants' contributions | |||
2022 | 324,000,000 | ||
2023 | 309,000,000 | ||
2024 | 326,000,000 | ||
2025 | 312,000,000 | ||
2026 | 304,000,000 | ||
2027-2031 | 1,409,000,000 | ||
Pre tax expenses associated with contribution plans | 18,000,000 | 17,000,000 | |
Pensions | Non U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
AIG contributions | 48,000,000 | 49,000,000 | |
Expected future benefit payments, net of participants' contributions | |||
2022 | 40,000,000 | ||
2023 | 42,000,000 | ||
2024 | 48,000,000 | ||
2025 | 51,000,000 | ||
2026 | 53,000,000 | ||
2027-2031 | 282,000,000 | ||
Pre tax expenses associated with contribution plans | 48,000,000 | 49,000,000 | |
Postretirement Plans | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
AIG contributions | 11,000,000 | 13,000,000 | |
Expected future benefit payments, net of participants' contributions | |||
2022 | 12,000,000 | ||
2023 | 12,000,000 | ||
2024 | 12,000,000 | ||
2025 | 11,000,000 | ||
2026 | 10,000,000 | ||
2027-2031 | 46,000,000 | ||
Pre tax expenses associated with contribution plans | 11,000,000 | 13,000,000 | |
Postretirement Plans | Non U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
AIG contributions | 1,000,000 | 1,000,000 | |
Expected future benefit payments, net of participants' contributions | |||
2022 | 1,000,000 | ||
2023 | 1,000,000 | ||
2024 | 1,000,000 | ||
2025 | 1,000,000 | ||
2026 | 2,000,000 | ||
2027-2031 | 9,000,000 | ||
Pre tax expenses associated with contribution plans | $ 1,000,000 | $ 1,000,000 |
INCOME TAXES (Details - Narrati
INCOME TAXES (Details - Narrative) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Oct. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Line Items] | |||||||
Effective tax rates on income from continuing operations (as a percent) | 18.00% | 20.00% | 22.10% | ||||
U.S. federal income tax at statutory rate (as a percent) | 21.00% | 21.00% | 21.00% | ||||
Dispositions of subsidiaries | $ 11 | $ 180 | $ 21 | ||||
Valuation allowance related to certain tax attribute carryforward | 850 | ||||||
Charges related to accrual of income tax interest | 67 | 96 | |||||
Share-based compensation payments excess tax effect | 16 | 35 | 27 | ||||
Reclassifications from accumulated other comprehensive income | (109) | (101) | (113) | ||||
Uncertain tax positions | (9) | 165 | 258 | ||||
Effect of foreign operations | 134 | 76 | 82 | ||||
Tax exempt income | 55 | 58 | 65 | ||||
Non-deductible transfer pricing charges | 16 | 11 | 15 | ||||
Non-controlling Interest | (97) | (12) | (5) | ||||
Tax charges and related interest from increase in uncertain tax positions from local and state | 37 | ||||||
Unrecognized deferred tax liabilities | 74 | ||||||
Net deferred tax assets (liabilities) | 11,479 | 12,390 | |||||
Deferred tax asset valuation allowance | 1,987 | 1,330 | |||||
Unrecognized Tax Benefits | 1,157 | 2,343 | 4,762 | $ 4,709 | |||
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate | 1,100 | 2,300 | 4,700 | ||||
Unrecognized tax benefits, if recognized would not affect the effective tax rate | 22 | 44 | 43 | ||||
Decrease in unrecognized tax benefits is reasonably possible in the next twelve months | 15 | ||||||
Unrecognized tax benefits, interest and penalties accrued | 69 | 286 | 2,400 | ||||
Unrecognized tax benefits, interest net of the federal (benefit) expense and penalties | (207) | 128 | 236 | ||||
Deferred tax asset valuation allowance | 718 | (65) | (44) | ||||
Income tax examination, additional payment | $ 10 | $ 354 | |||||
State and local income taxes | 37 | 15 | 13 | ||||
Tax audit resolution | (935) | (379) | 0 | ||||
Tax Credit Carryforward [Member] | |||||||
Income Tax Disclosure [Line Items] | |||||||
Deferred tax asset valuation allowance | $ 700 | 700 | |||||
Foreign and state | |||||||
Income Tax Disclosure [Line Items] | |||||||
Deferred tax asset valuation allowance recognized | 18 | (221) | $ 44 | ||||
Foreign, State and Local | |||||||
Income Tax Disclosure [Line Items] | |||||||
Net deferred tax assets (liabilities) | 486 | 384 | |||||
Deferred tax asset valuation allowance | 1,128 | 1,093 | |||||
US | |||||||
Income Tax Disclosure [Line Items] | |||||||
Deferred tax asset valuation allowance recognized | 150 | ||||||
Net deferred tax assets (liabilities) | 10,993 | 12,006 | |||||
Deferred tax asset valuation allowance | 859 | 237 | |||||
Tax Year 1991-2006 | |||||||
Income Tax Disclosure [Line Items] | |||||||
Uncertain tax positions | 379 | ||||||
Unrecognized tax benefits, interest and penalties accrued | $ 2,200 | ||||||
Fortitude [Member] | |||||||
Income Tax Disclosure [Line Items] | |||||||
Dispositions of subsidiaries | $ 186 |
INCOME TAXES (Details - Income
INCOME TAXES (Details - Income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAXES | |||
U.S. | $ 9,838 | $ (8,396) | $ 3,825 |
Foreign | 2,261 | 1,103 | 1,462 |
Income (loss) from continuing operations before income tax expense (benefit) | $ 12,099 | $ (7,293) | $ 5,287 |
INCOME TAXES (Details - Incom_2
INCOME TAXES (Details - Income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign: | |||
Current | $ 171 | $ 274 | $ 267 |
Deferred | 31 | (1) | (12) |
U.S.: | |||
Current | (216) | (57) | 278 |
Deferred | 2,190 | (1,676) | 633 |
Income tax expense (benefit) | $ 2,176 | $ (1,460) | $ 1,166 |
INCOME TAXES (Details - Reconci
INCOME TAXES (Details - Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, pre-tax income (loss) | |||
Consolidated total amounts | $ 12,099 | $ (7,288) | $ 5,336 |
Amounts attributable to discontinued operations | 0 | 5 | 49 |
Income from continuing operations before income tax expense | 12,099 | (7,293) | 5,287 |
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, tax expense/benefit | |||
U.S. federal income tax at statutory rate | 2,540 | (1,531) | 1,120 |
Consolidated total amounts | 2,176 | (1,459) | 1,167 |
Amounts attributable to discontinued operations | 0 | 1 | 1 |
Income tax expense (benefit) | 2,176 | (1,460) | 1,166 |
Adjustments: | |||
Tax exempt interest | (18) | (19) | (25) |
Uncertain tax positions | (9) | 165 | 258 |
Reclassifications from accumulated other comprehensive income | (109) | (101) | (113) |
Tax exempt income | 55 | 58 | 65 |
Dispositions of Subsidiaries | 11 | 180 | 21 |
Non-controlling Interest | (97) | (12) | (5) |
Non-deductible transfer pricing charges | 16 | 11 | 15 |
Dividends received deduction | (37) | (39) | (40) |
Effect of foreign operations | 134 | 76 | 82 |
Share-based compensation payments excess tax effect | 16 | 35 | 27 |
State income taxes | 37 | 15 | 13 |
Expiration of tax attribute carryforwards | 16 | 221 | 0 |
Tax audit resolution | (935) | (379) | 0 |
Other | (107) | (16) | (134) |
Effect of discontinued operations | 0 | 0 | (8) |
Valuation allowance | |||
Continuing operations | $ 718 | $ (65) | $ (44) |
Reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate, percentage of pre-tax income (loss) | |||
U.S. federal income tax at statutory rate (as a percent) | 21.00% | 21.00% | 21.00% |
Consolidated total amounts (as a percent) | 18.00% | 20.00% | 21.90% |
Amounts attributable to discontinued operations (as a percent) | 0.00% | 20.00% | 2.00% |
Adjustments: | |||
Amounts attributable to continuing operations (as a percent) | 18.00% | 20.00% | 22.10% |
Tax exempt interest (as a percent) | (0.10%) | 0.30% | (0.50%) |
Uncertain Tax Positions (as a percent) | (0.10%) | (2.30%) | 4.80% |
Reclassification from accumulated other comprehensive income (as a percent) | (0.90%) | 1.40% | (2.10%) |
Dispositions of Subsidiaries (as a percent) | 0.10% | (2.50%) | 0.40% |
Non-controlling interest (as a percent) | (0.80%) | 0.20% | (0.10%) |
Non-deductible transfer pricing charges (as a percent) | 0.10% | (0.20%) | 0.30% |
Dividends received deduction (as a percent) | (0.30%) | 0.50% | (0.70%) |
Effect of foreign operations (as a percent) | 1.10% | (1.00%) | 1.50% |
Share-based compensation payments excess tax deduction (as a percent) | 0.10% | (0.50%) | 0.50% |
State income taxes (as a percent) | 0.30% | (0.20%) | 0.20% |
Tax audit resolution | (7.60%) | 5.20% | 0.00% |
Expiration of tax attribute carryforward (as a percent) | 0.10% | (3.00%) | 0.00% |
Other (as a percent) | (0.90%) | 0.20% | (2.50%) |
Effect of discontinued operations (as a percent) | 0.00% | 0.00% | (0.10%) |
Income Tax (as a percent): | |||
Continuing operations (as a percent) | 5.90% | 0.90% | (0.80%) |
Charges related to accrual of income tax interest | $ 67 | $ 96 | |
Net charge related to accrual of IRS interest, tax expense reported in uncertain tax positions | 139 | 207 | |
Net charge related to accrual of IRS interest, tax benefit reported in other | $ 72 | (111) | |
Tax charges and related interest from increase in uncertain tax positions from local and state | $ 37 |
INCOME TAXES (Details - Compone
INCOME TAXES (Details - Components of the net deferred tax assets (liabilities) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Losses and tax credit carryforwards | $ 7,291 | $ 9,257 |
Basis differences on investments | 2,944 | 3,718 |
Fortitude Re funds withheld embedded derivative | 543 | 1,193 |
Life policy reserves | 3,751 | 2,396 |
Accruals not currently deductible, and other | 634 | 632 |
Investments in foreign subsidiaries | 0 | 146 |
Loss reserve discount | 455 | 423 |
Loan loss and other reserves | 509 | 560 |
Unearned premium reserve reduction | 283 | 326 |
Fixed assets and intangible assets | 1,262 | 1,077 |
Other | 247 | 0 |
Employee benefits | 407 | 567 |
Total deferred tax assets | 18,326 | 20,295 |
Deferred tax liabilities: | ||
Deferred Tax Liabilities, Investments in foreign subsidiaries | (15) | 0 |
Deferred policy acquisition costs | (2,054) | (2,026) |
Unrealized gains related to available for sale debt securities | (2,791) | (4,328) |
Other | 0 | (221) |
Total deferred tax liabilities | (4,860) | (6,575) |
Net deferred tax assets before valuation allowance | 13,466 | 13,720 |
Valuation allowance | (1,987) | (1,330) |
Net deferred tax assets (liabilities) | $ 11,479 | $ 12,390 |
INCOME TAXES (Details - U.S. co
INCOME TAXES (Details - U.S. consolidated income tax group tax losses and credits carryforwards) $ in Millions | Dec. 31, 2021USD ($) |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, gross | |
Net operating loss carryforwards | $ 27,597 |
Capital Loss Carryforwards | 0 |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 5,795 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 284 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 6,079 |
Tax Year 2022 | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 0 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 0 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 0 |
Tax Year 2023 | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 0 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 284 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 284 |
Tax Year 2024 | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 0 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 0 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 0 |
Tax Year 2025 | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 0 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 0 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 0 |
Tax Year 2026 | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 0 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 0 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a U.S.GAAP basis | 0 |
Tax Year 2027 | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 0 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 0 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis | 0 |
Unlimited Carryforwards And Tax Years 2028 And After | |
AIG U.S. consolidated income tax group tax losses and credits carryforwards, tax effected | |
Net operating loss carryforwards | 5,795 |
Capital Loss Carryforwards | 0 |
Foreign tax credit carryforwards | 0 |
Other carryforwards | 0 |
Total AIG U.S. consolidated income tax group tax losses and credits carryforwards on a tax return basis | $ 5,795 |
INCOME TAXES (Details - Assessm
INCOME TAXES (Details - Assessment of Deferred Tax Asset (liabilities) Valuation Allowance) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||
Valuation allowance | $ (1,987) | $ (1,330) |
Net deferred tax assets (liabilities) | 11,479 | 12,390 |
Net foreign, state & local deferred tax assets | 13,466 | 13,720 |
Net U.S, foreign, state & local deferred tax assets | 11,714 | 12,624 |
Net foreign, state & local deferred tax liabilities | (4,860) | (6,575) |
Deferred tax asset - U.S. consolidated income tax group | ||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||
Net U.S. consolidated return group deferred tax assets | 14,616 | 16,502 |
Net deferred tax assets (liabilities) in Accumulated other comprehensive income | (2,764) | (4,259) |
Valuation allowance | (859) | (237) |
Net deferred tax assets (liabilities) | 10,993 | 12,006 |
Deferred tax liability - foreign, state and local | ||
Net deferred tax assets (liabilities) on a U.S. GAAP basis | ||
Valuation allowance | (1,128) | (1,093) |
Net deferred tax assets (liabilities) | 486 | 384 |
Net foreign, state & local deferred tax assets | 1,849 | 1,711 |
Net foreign, state & local deferred tax liabilities | (235) | (234) |
Net deferred tax assets (liabilities) | $ 721 | $ 618 |
INCOME TAXES (Details - Account
INCOME TAXES (Details - Accounting For Uncertainty in Income Taxes) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Rollforward of the beginning and ending balances of the total amounts of gross unrecognized tax benefits | |||
Gross unrecognized tax benefits, beginning of year | $ 2,343 | $ 4,762 | $ 4,709 |
Increases in tax positions for prior years | 22 | 45 | 51 |
Decreases in tax positions for prior years | (1,233) | (131) | (1) |
Increases in tax positions for current year | 37 | 13 | 4 |
Settlements | (12) | (2,346) | (1) |
Gross unrecognized tax benefits, end of year | $ 1,157 | $ 2,343 | $ 4,762 |
INCOME TAXES (Details - Tax Yea
INCOME TAXES (Details - Tax Years that remain open in Income Taxes) | 12 Months Ended |
Dec. 31, 2021 | |
UNITED STATES [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2007 |
UNITED STATES [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2020 |
Australia [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2017 |
Australia [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2020 |
Canada [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2014 |
Canada [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2020 |
FRANCE [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2019 |
FRANCE [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2020 |
JAPAN [Member} | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2015 |
JAPAN [Member} | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2020 |
KOREA [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2014 |
KOREA [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2020 |
SINGAPORE [Member] | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2017 |
SINGAPORE [Member] | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2020 |
United Kingdom | Minimum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2020 |
United Kingdom | Maximum [Member] | |
Income Tax Contingency [Line Items] | |
Open Tax Year | 2020 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 16, 2022 | Dec. 30, 2021 | Sep. 30, 2021 | Jun. 29, 2021 | Mar. 30, 2021 | Dec. 28, 2020 | Sep. 30, 2020 | Jun. 29, 2020 | Mar. 30, 2020 | Dec. 26, 2019 | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Feb. 15, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||||||||||||||||
Date dividends declared | Nov. 4, 2021 | Aug. 5, 2021 | May 6, 2021 | Feb. 16, 2021 | Nov. 5, 2020 | Aug. 3, 2020 | May 4, 2020 | Feb. 12, 2020 | Oct. 31, 2019 | Aug. 7, 2019 | May 6, 2019 | Feb. 13, 2019 | |||||
Date dividends paid | Dec. 30, 2021 | Sep. 30, 2021 | Jun. 29, 2021 | Mar. 30, 2021 | Dec. 28, 2020 | Sep. 30, 2020 | Jun. 29, 2020 | Mar. 30, 2020 | Dec. 26, 2019 | Sep. 30, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | |||||
Date of record | Dec. 16, 2021 | Sep. 16, 2021 | Jun. 15, 2021 | Mar. 16, 2021 | Dec. 14, 2020 | Sep. 17, 2020 | Jun. 15, 2020 | Mar. 16, 2020 | Dec. 12, 2019 | Sep. 17, 2019 | Jun. 14, 2019 | Mar. 15, 2019 | |||||
Total number of shares common shares repurchased | 49,723,756 | 12,160,952 | 0 | ||||||||||||||
Subsequent event | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Dividends declared per common share | $ 0.32 | ||||||||||||||||
Subsequent event | Common Stock | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Date dividends declared | Feb. 16, 2022 | ||||||||||||||||
Date dividends paid | Mar. 31, 2022 | ||||||||||||||||
Date of record | Mar. 17, 2022 | ||||||||||||||||
Total number of shares common shares repurchased | 9,000,000 | ||||||||||||||||
Aggregate purchase price of repurchased shares | $ 522 | ||||||||||||||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 3,400 | ||||||||||||||||
Subsequent event | Preferred Stock | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Date dividends declared | Feb. 16, 2022 | ||||||||||||||||
Dividends declared per common share | $ 365.625 | ||||||||||||||||
Date dividends paid | Mar. 15, 2022 | ||||||||||||||||
Date of record | Feb. 28, 2022 |
Schedule I Summary of Investm_2
Schedule I Summary of Investments - Other than Investments in Related Parties (Details) $ in Millions | Dec. 31, 2021USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $ 342,923 |
Fair Value | 362,144 |
Amount at which shown in the Balance Sheet | 360,135 |
Fixed maturity securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 265,489 |
Fair Value | 283,480 |
Amount at which shown in the Balance Sheet | 283,480 |
U.S. government and government sponsored entities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 9,624 |
Fair Value | 9,944 |
Amount at which shown in the Balance Sheet | 9,944 |
Obligations of states, municipalities and political subdivisions | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 12,858 |
Fair Value | 14,625 |
Amount at which shown in the Balance Sheet | 14,625 |
Non-U.S. government | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 15,934 |
Fair Value | 16,406 |
Amount at which shown in the Balance Sheet | 16,406 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 22,502 |
Fair Value | 24,252 |
Amount at which shown in the Balance Sheet | 24,252 |
All other corporate and debt securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 141,612 |
Fair Value | 152,405 |
Amount at which shown in the Balance Sheet | 152,405 |
Mortgage-backed, asset-backed and collateralized | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 62,959 |
Fair Value | 65,848 |
Amount at which shown in the Balance Sheet | 65,848 |
Equity securities and mutual funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 739 |
Fair Value | 739 |
Amount at which shown in the Balance Sheet | 739 |
Common Stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 491 |
Fair Value | 491 |
Amount at which shown in the Balance Sheet | 491 |
Public utilities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1 |
Fair Value | 1 |
Amount at which shown in the Balance Sheet | 1 |
Banks, trust and insurance companies | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 158 |
Fair Value | 158 |
Amount at which shown in the Balance Sheet | 158 |
Industrial, miscellaneous and all other | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 332 |
Fair Value | 332 |
Amount at which shown in the Balance Sheet | 332 |
Preferred stock | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 10 |
Fair Value | 10 |
Amount at which shown in the Balance Sheet | 10 |
Mutual funds | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 238 |
Fair Value | 238 |
Amount at which shown in the Balance Sheet | 238 |
Mortgage and other loans receivable, net of allowance | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 46,048 |
Fair Value | 48,058 |
Amount at which shown in the Balance Sheet | 46,048 |
Other invested assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 16,447 |
Fair Value | 15,667 |
Amount at which shown in the Balance Sheet | 15,668 |
Short-term investments, at cost | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 13,357 |
Fair Value | 13,357 |
Amount at which shown in the Balance Sheet | 13,357 |
Derivative assets | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 843 |
Fair Value | 843 |
Amount at which shown in the Balance Sheet | $ 843 |
Schedule II Condensed Financi_2
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Balance Sheets) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Assets: | |||||||
Short-term investments | [1] | $ 13,357,000,000 | $ 18,203,000,000 | ||||
Other Investments | [1] | 15,668,000,000 | 19,060,000,000 | ||||
Total investments | 359,292,000,000 | 360,668,000,000 | |||||
Cash | 2,198,000,000 | [1] | 2,827,000,000 | [1] | $ 2,856,000,000 | ||
Deferred income taxes | 11,714,000,000 | 12,624,000,000 | |||||
Other assets | [1] | 14,351,000,000 | 13,122,000,000 | ||||
Total assets | 596,112,000,000 | 586,481,000,000 | |||||
Liabilities: | |||||||
Outstanding debt | [1] | 30,163,000,000 | 37,534,000,000 | ||||
Total liabilities | 527,200,000,000 | 519,282,000,000 | |||||
AIG Shareholders' equity: | |||||||
Preferred stock | 485,000,000 | 485,000,000 | |||||
Common stock | 4,766,000,000 | 4,766,000,000 | |||||
Treasury stock | (51,618,000,000) | (49,322,000,000) | |||||
Additional paid-in capital | 81,851,000,000 | 81,418,000,000 | |||||
Retained earnings | 23,785,000,000 | 15,504,000,000 | |||||
Accumulated other comprehensive income | 6,687,000,000 | 13,511,000,000 | 4,982,000,000 | $ (1,413,000,000) | |||
Total AIG shareholders' equity | 65,956,000,000 | 66,362,000,000 | |||||
Total liabilities and equity | 596,112,000,000 | 586,481,000,000 | |||||
Short-term investments | |||||||
Assets: | |||||||
Restricted cash | 197,000,000 | 180,000,000 | 188,000,000 | ||||
Other assets | |||||||
Assets: | |||||||
Restricted cash | 32,000,000 | 223,000,000 | 243,000,000 | ||||
Parent Company [Member] | |||||||
Assets: | |||||||
Short-term investments | 4,332,000,000 | 6,918,000,000 | |||||
Other Investments | 6,671,000,000 | 4,227,000,000 | |||||
Total investments | 11,003,000,000 | 11,145,000,000 | |||||
Cash | 3,000,000 | 3,000,000 | 2,000,000 | ||||
Loans to subsidiaries | 45,415,000,000 | 36,981,000,000 | |||||
Due from affiliates - net | 1,941,000,000 | 1,531,000,000 | |||||
Intercompany tax receivable | 426,000,000 | 978,000,000 | |||||
Deferred income taxes | 5,845,000,000 | 8,525,000,000 | |||||
Investment in consolidated subsidiaries | 29,713,000,000 | 41,294,000,000 | |||||
Other assets | 406,000,000 | 313,000,000 | |||||
Total assets | 94,752,000,000 | 100,770,000,000 | |||||
Liabilities: | |||||||
Due to affiliate | 2,992,000,000 | 3,224,000,000 | |||||
Intercompany tax payable | 2,193,000,000 | 2,669,000,000 | |||||
Loans from subsidiaries | 739,000,000 | 735,000,000 | |||||
Other liabilities (includes intercompany derivative liabilities of $33 in 2019 and $105 in 2018) | 2,057,000,000 | 3,130,000,000 | |||||
Total liabilities | 28,796,000,000 | 34,408,000,000 | |||||
AIG Shareholders' equity: | |||||||
Preferred stock | 485,000,000 | 485,000,000 | |||||
Common stock | 4,766,000,000 | 4,766,000,000 | |||||
Treasury stock | (51,618,000,000) | (49,322,000,000) | |||||
Additional paid-in capital | 81,851,000,000 | 81,418,000,000 | |||||
Retained earnings | 23,785,000,000 | 15,504,000,000 | |||||
Accumulated other comprehensive income | 6,687,000,000 | 13,511,000,000 | |||||
Total AIG shareholders' equity | 65,956,000,000 | 66,362,000,000 | |||||
Total liabilities and equity | 94,752,000,000 | 100,770,000,000 | |||||
Parent Company [Member] | Short-term investments | |||||||
Assets: | |||||||
Restricted cash | 0 | 0 | 102,000,000 | ||||
Parent Company [Member] | Other assets | |||||||
Assets: | |||||||
Restricted cash | 1,000,000 | 1,000,000 | $ 1,000,000 | ||||
Series AIGFP | Parent Company [Member] | |||||||
Liabilities: | |||||||
Outstanding debt | 18,000,000 | 21,000,000 | |||||
Notes and bonds payable | Parent Company [Member] | |||||||
Liabilities: | |||||||
Outstanding debt | 19,633,000,000 | 23,068,000,000 | |||||
Junior subordinated debt | Parent Company [Member] | |||||||
Liabilities: | |||||||
Outstanding debt | $ 1,164,000,000 | $ 1,561,000,000 | |||||
[1] | See Note 9 for details of balances associated with variable interest entities. |
Schedule II Condensed Financi_3
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Income) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Net realized gains (losses) | $ 2,151 | $ (2,238) | $ 632 |
Other income | 984 | 903 | 919 |
Expenses: | |||
Interest expense | 1,305 | 1,457 | 1,417 |
Losses on extinguishment of debt | 389 | 12 | 32 |
Net loss on sale or disposal of divested businesses | (3,044) | 8,525 | 75 |
Income (loss) from continuing operations before income tax expense (benefit) | 12,099 | (7,293) | 5,287 |
Income tax benefit | 2,176 | (1,460) | 1,166 |
Income (loss) attributable to AIG common shareholders from continuing operations | 9,359 | (5,977) | 3,278 |
Income from discontinued operations, net of income taxes | 0 | 4 | 48 |
Net income (loss) attributable to AIG | 9,388 | (5,944) | 3,348 |
Parent Company [Member] | |||
Revenues: | |||
Equity in undistributed net income (loss) of consolidated subsidiaries | (3,370) | (2,569) | 44 |
Dividend income from consolidated subsidiaries | 14,699 | 1,797 | 3,819 |
Interest income | 169 | 348 | 1,034 |
Net realized gains (losses) | (1) | (149) | (3) |
Other income | (3) | (1) | 125 |
Expenses: | |||
Interest expense | 948 | 1,043 | 985 |
Losses on extinguishment of debt | 304 | 2 | 0 |
Net loss on sale or disposal of divested businesses | (10) | 4,010 | 1 |
Other expenses | 1,214 | 980 | 728 |
Income (loss) from continuing operations before income tax expense (benefit) | 9,038 | (6,609) | 3,305 |
Income tax benefit | (350) | (667) | (45) |
Income (loss) attributable to AIG common shareholders from continuing operations | 9,388 | (5,942) | 3,350 |
Income from discontinued operations, net of income taxes | 0 | (2) | (2) |
Net income (loss) attributable to AIG | 9,388 | (5,944) | 3,348 |
Related party interest income | $ 131 | $ 295 | $ 904 |
Schedule II Condensed Financi_4
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Comprehensive Income (Loss)) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net income | $ 9,388 | $ (5,944) | $ 3,348 |
Other comprehensive income (loss) | (5,830) | 8,513 | 6,415 |
Comprehensive income attributable to AIG | 3,663 | 2,585 | 9,743 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 9,388 | (5,944) | 3,348 |
Other comprehensive income (loss) | (5,725) | 8,529 | 6,395 |
Comprehensive income attributable to AIG | $ 3,663 | $ 2,585 | $ 9,743 |
Schedule II Condensed Financi_5
Schedule II Condensed Financial Information of Registrant - Parent Company Only (Details - Statements of Cash Flows) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Net cash provided by (used in) operating activities | $ 6,279 | $ 1,038 | $ (1,807) | ||
Cash flows from investing activities: | |||||
Sale of divested businesses | 4,683 | 2,173 | 2 | ||
Net change in short-term investments | 5,088 | (4,925) | (3,633) | ||
Mortgage and other loans receivable | (9,013) | (5,990) | (9,515) | ||
Other, net | (995) | 6 | 1,503 | ||
Net cash used in investing activities | (3,280) | (6,202) | (5,475) | ||
Cash flows from financing activities: | |||||
Issuance of preferred stock | 0 | 0 | 485 | ||
Dividends paid on preferred stock | (29) | (29) | (22) | ||
Dividends paid on common stock | (1,083) | (1,103) | (1,114) | ||
Purchase of common stock | (2,592) | (500) | 0 | ||
Other, net | (1,222) | (541) | (1,600) | ||
Net cash provided by (used in) financing activities | (3,735) | 5,058 | 7,258 | ||
Net increase in cash and restricted cash | (803) | (57) | (8) | ||
Cash and restricted cash at beginning of year | 3,230 | 3,287 | 3,358 | ||
Cash and restricted cash at end of year | 2,427 | 3,230 | 3,287 | ||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | |||||
Cash | 2,198 | [1] | 2,827 | [1] | 2,856 |
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows | 2,427 | 3,230 | 3,287 | ||
Interest: | |||||
Third party | (1,348) | (1,147) | (1,326) | ||
Taxes: | |||||
Income tax authorities | (862) | (975) | (252) | ||
Non-cash investing/financing activities: | |||||
Dividends received in the form of intercompany note | 8,300 | 0 | 0 | ||
Other Assets [Member] | |||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | |||||
Restricted cash | 32 | 223 | 243 | ||
Short-term Investments [Member] | |||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | |||||
Restricted cash | 197 | 180 | 188 | ||
Parent Company [Member] | |||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||
Net cash provided by (used in) operating activities | 3,837 | (30) | 3,484 | ||
Cash flows from investing activities: | |||||
Sales and maturities of investments | 4,228 | 5,181 | 2,313 | ||
Sale of divested businesses | 0 | 2,225 | 0 | ||
Purchase of investments | (5,761) | (3,250) | (2,957) | ||
Net change in short-term investments | 2,647 | (3,559) | (2,170) | ||
Contributions from (to) subsidiaries - net | 403 | (964) | (237) | ||
Loans to subsidiaries - net | (104) | (22) | 513 | ||
Other, net | (41) | (402) | 67 | ||
Net cash used in investing activities | 1,372 | (791) | (2,471) | ||
Cash flows from financing activities: | |||||
Issuance of long-term debt | 0 | 4,065 | 595 | ||
Repayments of long-term debt | (3,703) | (1,696) | (1,006) | ||
Issuance of preferred stock | 0 | 0 | 485 | ||
Dividends paid on preferred stock | (29) | (29) | (22) | ||
Dividends paid on common stock | (1,083) | (1,103) | (1,114) | ||
Loans from subsidiaries - net | 3 | 16 | 93 | ||
Purchase of common stock | (2,598) | (500) | 0 | ||
Other, net | 2,201 | (33) | (66) | ||
Net cash provided by (used in) financing activities | (5,209) | 720 | (1,035) | ||
Net increase in cash and restricted cash | 0 | (101) | (22) | ||
Cash and restricted cash at beginning of year | 4 | 105 | 127 | ||
Cash and restricted cash at end of year | 4 | 4 | 105 | ||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | |||||
Cash | 3 | 3 | 2 | ||
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows | 4 | 4 | 105 | ||
Interest: | |||||
Third party | (941) | (1,014) | (941) | ||
Intercompany | 1 | 0 | (3) | ||
Taxes: | |||||
Income tax authorities | (494) | (466) | (11) | ||
Intercompany | 1,950 | 1,592 | 1,179 | ||
Non-cash investing/financing activities: | |||||
Capital contributions | 2,284 | 333 | 15 | ||
Return of capital | 1,365 | 0 | 15 | ||
Dividends received in the form of securities | 1,289 | 879 | 702 | ||
Parent Company [Member] | Other Assets [Member] | |||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | |||||
Restricted cash | 1 | 1 | 1 | ||
Parent Company [Member] | Short-term Investments [Member] | |||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | |||||
Restricted cash | $ 0 | $ 0 | $ 102 | ||
[1] | See Note 9 for details of balances associated with variable interest entities. |
Schedule III Supplementary In_2
Schedule III Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | $ 10,514 | $ 9,805 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 138,976 | 134,598 | |
Unearned Premiums | 19,313 | 18,660 | |
Policy and Contract Claims | 1,549 | 1,378 | |
Premiums and Policy Fees | 34,310 | 31,440 | $ 33,576 |
Net Investment Income | 14,612 | 13,631 | 14,619 |
Losses and Loss Expenses Incurred, Benefits | 27,945 | 28,428 | 29,234 |
Amortization of Deferred Policy Acquisition Costs | 4,573 | 4,211 | 5,164 |
Other Operating Expenses | 8,790 | 8,396 | 8,537 |
Net Premiums Written | 26,417 | 23,456 | 25,454 |
General Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 2,428 | 2,489 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 75,500 | 74,315 | |
Unearned Premiums | 19,209 | 18,595 | |
Policy and Contract Claims | 0 | 0 | |
Premiums and Policy Fees | 25,057 | 23,662 | 26,438 |
Net Investment Income | 3,304 | 2,925 | 3,444 |
Losses and Loss Expenses Incurred, Benefits | 16,097 | 16,803 | 17,246 |
Amortization of Deferred Policy Acquisition Costs | 3,530 | 3,538 | 4,482 |
Other Operating Expenses | 4,375 | 4,345 | 4,621 |
Net Premiums Written | 25,890 | 22,959 | 25,092 |
Life and Retirement | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 8,086 | 7,316 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 57,749 | 54,645 | |
Unearned Premiums | 68 | 57 | |
Policy and Contract Claims | 1,460 | 1,336 | |
Premiums and Policy Fees | 9,080 | 7,498 | 6,712 |
Net Investment Income | 9,521 | 8,881 | 8,733 |
Losses and Loss Expenses Incurred, Benefits | 11,944 | 10,435 | 9,427 |
Amortization of Deferred Policy Acquisition Costs | 973 | 632 | 672 |
Other Operating Expenses | 2,636 | 2,522 | 2,542 |
Net Premiums Written | 0 | 0 | 0 |
Other Operations | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 0 | 0 | |
Liability for Unpaid Losses and Loss Adjustment Expenses, Future Policy Benefits | 5,727 | 5,638 | |
Unearned Premiums | 36 | 8 | |
Policy and Contract Claims | 89 | 42 | |
Premiums and Policy Fees | 173 | 280 | 426 |
Net Investment Income | 1,787 | 1,825 | 2,442 |
Losses and Loss Expenses Incurred, Benefits | (96) | 1,190 | 2,561 |
Amortization of Deferred Policy Acquisition Costs | 70 | 41 | 10 |
Other Operating Expenses | 1,779 | 1,529 | 1,374 |
Net Premiums Written | $ 527 | $ 497 | $ 362 |
Schedule IV Reinsurance (Detail
Schedule IV Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Net Amount | $ 31,259 | $ 28,523 | $ 30,561 |
Reportable Segments | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Percent of Amount Assumed to Net | 28.50% | 24.70% | 21.70% |
Direct | $ 34,875 | $ 32,977 | $ 34,380 |
Ceded to Other Companies | 12,521 | 11,496 | 10,442 |
Assumed from Other Companies | 8,905 | 7,042 | 6,623 |
Net Amount | $ 31,259 | $ 28,523 | $ 30,561 |
Reportable Segments | General Insurance Companies | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Percent of Amount Assumed to Net | 25.90% | 24.80% | 23.80% |
Direct | $ 30,279 | $ 28,596 | $ 30,017 |
Ceded to Other Companies | 11,301 | 10,435 | 9,526 |
Assumed from Other Companies | 6,640 | 5,984 | 6,395 |
Net Amount | $ 25,618 | $ 24,145 | $ 26,886 |
Reportable Segments | Life and Retirement Companies | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Percent of Amount Assumed to Net | 40.20% | 24.20% | 6.20% |
Direct | $ 4,596 | $ 4,381 | $ 4,363 |
Ceded to Other Companies | 1,220 | 1,061 | 916 |
Assumed from Other Companies | 2,265 | 1,058 | 228 |
Net Amount | $ 5,641 | $ 4,378 | $ 3,675 |
Long-duration insurance in force | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Percent of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Direct | $ 1,280,090 | $ 1,243,389 | $ 1,185,771 |
Ceded to Other Companies | 363,008 | 349,453 | 264,732 |
Assumed from Other Companies | 192 | 225 | 279 |
Net Amount | $ 917,274 | 894,161 | $ 921,318 |
Long-duration insurance in force | As Previously Reported | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Ceded to Other Companies | 292,500 | ||
Net Amount | $ 951,100 |
Schedule V Valuation and Qual_2
Schedule V Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for mortgage and other loans receivable | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | $ 814 | $ 438 | $ 397 |
Initial Allowance Upon CECL Adoption | 0 | 318 | 0 |
Charged to costs and expenses | (164) | 75 | 46 |
Charge offs | (2) | (17) | (5) |
Divestitures | (19) | 0 | 0 |
Other changes | 0 | 0 | 0 |
Balance at the end of the year | 629 | 814 | 438 |
Allowance for premiums and insurances balances receivable | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 205 | 178 | 216 |
Initial Allowance Upon CECL Adoption | 0 | 34 | 0 |
Charged to costs and expenses | (15) | 6 | (25) |
Charge offs | (2) | (12) | (23) |
Divestitures | 0 | 0 | 0 |
Other changes | (3) | (1) | 10 |
Balance at the end of the year | 185 | 205 | 178 |
Allowance for reinsurance assets | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 326 | 151 | 140 |
Initial Allowance Upon CECL Adoption | 0 | 172 | 0 |
Charged to costs and expenses | 24 | 12 | 20 |
Charge offs | (17) | (9) | (11) |
Divestitures | 0 | 0 | 0 |
Other changes | 0 | 0 | 2 |
Balance at the end of the year | 333 | 326 | 151 |
Federal and foreign valuation allowance for deferred tax assets | |||
Valuation and Qualifying Accounts | |||
Balance at the beginning of the year | 1,330 | 1,425 | 1,779 |
Initial Allowance Upon CECL Adoption | 0 | 0 | 0 |
Charged to costs and expenses | 718 | (65) | (44) |
Charge offs | 0 | 0 | 0 |
Divestitures | 0 | 0 | 0 |
Other changes | (61) | (30) | (310) |
Balance at the end of the year | $ 1,987 | $ 1,330 | $ 1,425 |