Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 26, 2022 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
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 | 792,191,972 | |
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 Quarterly Report | true | |
Document Transition Report | false | |
Common Stock | ||
Entity Listings [Line Items] | ||
Security 12b Title | Common Stock, Par Value $2.50 Per Share | |
Trading Symbol | AIG | |
Security Exchange Name | NYSE | |
5.75% Series A-2 Junior Subordinated Debentures | ||
Entity Listings [Line Items] | ||
Security 12b Title | 5.75% Series A-2 Junior Subordinated Debentures | |
Trading Symbol | AIG 67BP | |
Security Exchange Name | NYSE | |
4.875% Series A-3 Junior Subordinated Debentures | ||
Entity Listings [Line Items] | ||
Security 12b Title | 4.875% Series A-3 Junior Subordinated Debentures | |
Trading Symbol | AIG 67EU | |
Security Exchange Name | NYSE | |
Stock Purchase Rights | ||
Entity Listings [Line Items] | ||
Security 12b Title | Stock Purchase Rights | |
No Trading Symbol Flag | true | |
Security Exchange Name | NYSE | |
Depository Shares Each Representing 1/1,000th Interest in a Share of Series A 5.85% Non-Cumulative Perpetual Preferred Stock | ||
Entity Listings [Line Items] | ||
Security 12b Title | Depositary Shares Each Representing a 1/1,000th Interest in a Share of Series A 5.85% Non-Cumulative Perpetual Preferred Stock | |
Trading Symbol | AIG PRA | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Fixed maturity securities: | |||
Bonds available for sale, at fair value, net of allowance for credit losses of $191 in 2022 and $98 in 2021 (amortized cost: 2022 - $259,480; 2021 - $259,210) | [1] | $ 257,219 | $ 277,202 |
Other bond securities, at fair value (See Note 5) | [1] | 6,582 | 6,278 |
Equity Securities, at fair value (See Note 5) | [1] | 695 | 739 |
Mortgage and other loans receivable, net of allowance for credit losses of $617 in 2022 and $629 in 2021 | [1] | 47,470 | 46,048 |
Other invested assets (portion measured at fair value: 2022 - $11,687; 2021 - $10,504) | [1] | 16,186 | 15,668 |
Short-term investments, including restricted cash of $152 in 2022 and $197 in 2021 (portion measured at fair value: 2022 - $3,430; 2021 - $4,426) | [1] | 9,718 | 13,357 |
Total investments | 337,870 | 359,292 | |
Cash | [1] | 2,537 | 2,198 |
Accrued investment income | [1] | 2,272 | 2,239 |
Premiums and other receivables, net of allowance for credit losses and disputes of $184 in 2022 and $185 in 2021 | 14,827 | 12,409 | |
Deferred income taxes | 13,435 | 11,714 | |
Deferred policy acquisition costs | 12,915 | 10,514 | |
Other assets, net of allowance for credit losses of $49 in 2022 and $49 in 2021, including restricted cash of $40 in 2022 and $32 in 2021 (portion measured at fair value: 2022 - $764; 2021 - $957) | [1] | 13,205 | 14,351 |
Separate account assets, at fair value | 100,850 | 109,111 | |
Total assets | 573,513 | 596,112 | |
Liabilities: | |||
Liability for unpaid losses and loss adjustment expenses, including allowance for credit losses of $14 in 2022 and $14 in 2021 | 78,183 | 79,026 | |
Unearned premiums | 21,764 | 19,313 | |
Future policy benefits for life and accident and health insurance contracts | 58,650 | 59,950 | |
Policyholder contract deposits (portion measured at fair value: 2022 - $8,080; 2021 - $9,736) | 156,476 | 156,686 | |
Other policyholder funds | 3,768 | 3,476 | |
Fortitude Re funds withheld payable (portion measured at fair value: 2022 - $2,206; 2021 - $5,922) | 36,481 | 40,771 | |
Other liabilities (portion measured at fair value: 2022 - $396; 2021 - $586) | [1] | 29,300 | 28,704 |
Separate account liabilities | 100,850 | 109,111 | |
Total liabilities | 515,410 | 527,200 | |
Contingencies, commitments and guarantees (see Note 11) | |||
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: 2022 - 20,000 and 2021 - 20,000; liquidation preference $500 | 485 | 485 | |
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2022 - 1,906,671,492 and 2021 - 1,906,671,492 | 4,766 | 4,766 | |
Treasury stock, at cost; 2022 - 1,106,447,402 shares; 2021 - 1,087,984,129 shares of common stock | (52,791) | (51,618) | |
Additional paid-in capital | 81,620 | 81,851 | |
Retained earnings | 27,764 | 23,785 | |
Accumulated other comprehensive income (loss) | (5,900) | 6,687 | |
Total AIG shareholders' equity | 55,944 | 65,956 | |
Non-redeemable noncontrolling interests | 2,159 | 2,956 | |
Total equity | 58,103 | 68,912 | |
Total liabilities and equity | 573,513 | 596,112 | |
Excluding Fortitude | |||
Fixed maturity securities: | |||
Reinsurance assets, net of allowance for credit losses and disputes | 42,326 | 40,919 | |
Fortitude | |||
Fixed maturity securities: | |||
Reinsurance assets, net of allowance for credit losses and disputes | 33,276 | 33,365 | |
American International Group, Inc. | |||
Liabilities: | |||
Long-term debt | 23,572 | 23,741 | |
Debt of consolidated investments | |||
Liabilities: | |||
Long-term debt | [1] | $ 6,366 | $ 6,422 |
[1] | See Note 8 for details of balances associated with variable interest entities. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical - assets and liabilities) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Assets: | |||
Bonds available for sale, allowance for credit losses | $ 191 | $ 98 | |
Bonds available for sale, amortized cost | 259,480 | 259,210 | |
Mortgage and other loans receivable, allowance for credit losses | 617 | 629 | |
Other invested assets, portion measured at fair value | 11,687 | 10,504 | |
Short-term investments, portion measured at fair value | 3,430 | 4,426 | |
Premiums and other receivables, allowance for credit losses and disputes | 184 | 185 | |
Reinsurance assets, allowance for credit losses and disputes | 342 | 333 | |
Other assets, allowance for credit losses | 49 | 49 | |
Other assets, portion measured at fair value | 764 | 957 | |
Liabilities: | |||
Liability for unpaid losses and loss adjustment expenses, allowance for credit losses | 14 | 14 | |
Policyholder contract deposits, portion measured at fair value | 8,080 | 9,736 | |
Fortitude Re funds withheld payable, portion measured at fair value | 2,206 | 5,922 | |
Other liabilities, portion measured at fair value | 396 | 586 | |
Long-term debt, portion measured at fair value | 1,782 | 1,871 | |
Fortitude | |||
Assets: | |||
Reinsurance assets, allowance for credit losses and disputes | 0 | 0 | |
Other assets | |||
Assets: | |||
Restricted cash | 40 | [1] | 32 |
Short-term investments | |||
Assets: | |||
Restricted cash | $ 152 | [1] | $ 197 |
[1] | Includes funds held for tax sharing payments to AIG Parent, security deposits, and replacement reserve deposits related to real estate. |
Condensed Consolidated Balanc_3
Condensed Consolidated Balance Sheets (Parenthetical - equity) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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 | 1,106,447,402 | 1,087,984,129 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Premiums | $ 7,110 | $ 6,507 |
Policy fees | 764 | 784 |
Net investment income | 3,237 | 3,657 |
Net realized gains (losses) | 4,419 | 3,250 |
Other income | 278 | 256 |
Total revenues | 15,808 | 14,454 |
Benefits, losses and expenses: | ||
Policyholder benefits and losses incurred | 5,255 | 5,139 |
Interest credited to policyholder account balances | 877 | 868 |
Amortization of deferred policy acquisition costs | 1,437 | 1,304 |
General operating and other expenses | 2,181 | 2,088 |
Interest expense | 263 | 342 |
Gains on extinguishment of debt | 0 | (8) |
Net gain on divestitures | (40) | (7) |
Total benefits, losses and expenses | 9,973 | 9,726 |
Income from continuing operations before income tax expense | 5,835 | 4,728 |
Income tax expense | 1,179 | 798 |
Income from continuing operations | 4,656 | 3,930 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 |
Net income | 4,656 | 3,930 |
Less: | ||
Net income from continuing operations attributable to noncontrolling interests | 396 | 54 |
Net income attributable to AIG | 4,260 | 3,876 |
Less: Dividends on peferred stock | 7 | 7 |
Net income attributable to AIG common shareholders | $ 4,253 | $ 3,869 |
Basic: | ||
Income from continuing operations | $ 5.21 | $ 4.45 |
Income from discontinued operations | 0 | 0 |
Net income attributable to AIG common shareholders | 5.21 | 4.45 |
Diluted: | ||
Income from continuing operations | 5.15 | 4.41 |
Income from discontinued operations | 0 | 0 |
Net income attributable to AIG common shareholders | $ 5.15 | $ 4.41 |
Weighted average shares outstanding: | ||
Basic | 816,314,273 | 868,105,069 |
Diluted | 826,012,610 | 876,269,924 |
Excluding Fortitude Re funds withheld assets | ||
Revenues: | ||
Net investment income | $ 2,946 | $ 3,171 |
Net realized gains (losses) | 1,241 | 695 |
Fortitude Re funds withheld assets | ||
Revenues: | ||
Net investment income | 291 | 486 |
Net realized gains (losses) | (140) | 173 |
Fortitude Re funds withheld embedded derivative | ||
Revenues: | ||
Net realized gains (losses) | $ 3,318 | $ 2,382 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||
Net income (loss) | $ 4,656 | $ 3,930 |
Other comprehensive income (loss), net of tax | ||
Change in unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken | (45) | 33 |
Change in unrealized depreciation of all other investments | (13,607) | (7,199) |
Change in foreign currency translation adjustments | (5) | 125 |
Change in retirement plan liabilities adjustment | 9 | (3) |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | 0 | (1) |
Other comprehensive loss | (13,648) | (7,045) |
Comprehensive loss | (8,992) | (3,115) |
Comprehensive income (loss) attributable to noncontrolling interests | (665) | 54 |
Comprehensive loss attributable to AIG | $ (8,327) | $ (3,169) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Total AIG Shareholders' Equity | Preferred Stock and Additional Paid-In Capital | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Non redeemable Non-controlling Interests |
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 | (84) | (84) | 0 | 0 | 171 | (255) | 0 | 0 | 0 |
Purchase of common stock | (362) | (362) | 0 | 0 | (362) | 0 | 0 | 0 | 0 |
Net income attributable to AIG or noncontrolling interests | 3,930 | 3,876 | 0 | 0 | 0 | 0 | 3,876 | 0 | 54 |
Dividends on preferred stock | (7) | (7) | 0 | 0 | 0 | 0 | (7) | 0 | 0 |
Dividends on common stock | (276) | (276) | 0 | 0 | 0 | 0 | (276) | 0 | 0 |
Other comprehensive loss | (7,045) | (7,045) | 0 | 0 | 0 | 0 | 0 | (7,045) | 0 |
Net increase (decrease) due to divestitures and acquisitions | 75 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 75 |
Contributions from noncontrolling interests | 5 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5 |
Distributions to noncontrolling interests | (90) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (90) |
Other | 215 | 215 | 0 | 0 | 101 | 90 | 24 | 0 | 0 |
Balance at Mar. 31, 2021 | 63,560 | 62,679 | 485 | 4,766 | (49,412) | 81,253 | 19,121 | 6,466 | 881 |
Balance at Dec. 31, 2021 | 68,912 | 65,956 | 485 | 4,766 | (51,618) | 81,851 | 23,785 | 6,687 | 2,956 |
Common stock issued under stock plans | (90) | (90) | 0 | 0 | 230 | (320) | 0 | 0 | 0 |
Purchase of common stock | (1,403) | (1,403) | 0 | 0 | (1,403) | 0 | 0 | 0 | 0 |
Net income attributable to AIG or noncontrolling interests | 4,656 | 4,260 | 0 | 0 | 0 | 0 | 4,260 | 0 | 396 |
Dividends on preferred stock | (7) | (7) | 0 | 0 | 0 | 0 | (7) | 0 | 0 |
Dividends on common stock | (258) | (258) | 0 | 0 | 0 | 0 | (258) | 0 | 0 |
Other comprehensive loss | (13,648) | (12,587) | 0 | 0 | 0 | 0 | 0 | (12,587) | (1,061) |
Net increase (decrease) due to divestitures and acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Contributions from noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Distributions to noncontrolling interests | (132) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (132) |
Other | 73 | 73 | 0 | 0 | 0 | 89 | (16) | 0 | 0 |
Balance at Mar. 31, 2022 | $ 58,103 | $ 55,944 | $ 485 | $ 4,766 | $ (52,791) | $ 81,620 | $ 27,764 | $ (5,900) | $ 2,159 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 4,656 | $ 3,930 |
Noncash revenues, expenses, gains and losses included in income (loss): | ||
Net gains (losses) on sales of securities available for sale and other assets | 165 | (417) |
Net gain on divestitures | (40) | (7) |
Gains on extinguishment of debt | 0 | (8) |
Unrealized gains in earnings - net | (2,006) | (853) |
Equity in (income) loss from equity method investments, net of dividends or distributions | (91) | 3 |
Depreciation and other amortization | 1,447 | 1,423 |
Impairments of assets | 0 | 6 |
Changes in operating assets and liabilities: | ||
Insurance reserves | 1,734 | 3,628 |
Premiums and other receivables and payables - net | (4,164) | (2,863) |
Reinsurance assets, net | (1,223) | (2,879) |
Capitalization of deferred policy acquisition costs | (1,386) | (1,422) |
Current and deferred income taxes - net | 1,123 | 756 |
Other, net | (158) | (657) |
Total adjustments | (4,599) | (3,290) |
Net cash provided by operating activities | 57 | 640 |
Sales or distribution of: | ||
Available for sale securities | 6,097 | 6,200 |
Other securities | 411 | 248 |
Other invested assets | 795 | 1,147 |
Maturities of fixed maturity securities available for sale | 5,674 | 7,823 |
Principal payments received on and sales of mortgage and other loans receivable | 1,921 | 2,009 |
Purchases of: | ||
Available for sale securities | (12,263) | (15,329) |
Other securities | (1,061) | (64) |
Other invested assets | (674) | (649) |
Mortgage and other loans receivable | (3,515) | (1,997) |
Net change in short-term investments | 3,645 | 4,067 |
Other, net | (177) | (1,950) |
Net cash provided by investing activities | 853 | 1,505 |
Proceeds from (payments for) | ||
Policyholder contract deposits | 6,392 | 5,716 |
Policyholder contract withdrawals | (4,802) | (5,190) |
Purchase of common stock | (1,394) | (362) |
Dividends paid on preferred stock | (7) | (7) |
Dividends paid on common stock | (258) | (276) |
Other, net | (490) | (102) |
Net cash used in financing activities | (595) | (2,114) |
Effect of exchange rate changes on cash and restricted cash | (13) | (17) |
Net increase in cash and restricted cash | 302 | 14 |
Cash and restricted cash at beginning of year | 2,427 | 3,230 |
Cash and restricted cash at end of period | 2,729 | 3,244 |
American International Group, Inc. | ||
Proceeds from (payments for) | ||
Issuance of debt | 11 | 27 |
Repayments of debt | (7) | (1,515) |
Debt of consolidated investments | ||
Proceeds from (payments for) | ||
Issuance of debt | 697 | 495 |
Repayments of debt | $ (737) | $ (900) |
Supplementary Disclosure of Con
Supplementary Disclosure of Consolidated Cash Flow Information - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | ||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | ||||||
Cash | $ 2,537 | [1] | $ 2,796 | $ 2,198 | [1] | |
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows | 2,729 | 3,244 | 2,427 | |||
Cash paid during the period for: | ||||||
Interest | 243 | 255 | ||||
Taxes | 56 | 42 | ||||
Non-cash investing activities: | ||||||
Fixed maturity securities received in connection with reinsurance transactions | 2 | 161 | ||||
Fixed maturity securities transferred in connection with reinsurance transactions | (204) | (194) | ||||
Non-cash financing activities: | ||||||
Interest credited to policyholder contract deposits included in financing activities | 835 | 860 | ||||
Fee income debited to policyholder contract deposits included in financing activities | (420) | (423) | ||||
Other assets | ||||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | ||||||
Restricted cash | 40 | [2] | 238 | [2] | 32 | |
Short-term investments | ||||||
Cash Equivalents, Restricted Cash and Restricted Cash Equivalents: | ||||||
Restricted cash | $ 152 | [2] | $ 210 | [2] | $ 197 | |
[1] | See Note 8 for details of balances associated with variable interest entities. | |||||
[2] | Includes funds held for tax sharing payments to AIG Parent, security deposits, and replacement reserve deposits related to real estate. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
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” “our” or “the Company” 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. These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) and should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the 2021 Annual Report). The condensed consolidated financial information as of December 31, 2021 included herein has been derived from the audited Consolidated Financial Statements in the 2021 Annual Report. Certain of our foreign subsidiaries included in the Condensed 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 Condensed Consolidated Financial Statements has been considered for adjustment and/or disclosure. In the opinion of management, these Condensed Consolidated Financial Statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein. Operating results for the three months ended March 31, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. We evaluated the need to recognize or disclose events that occurred subsequent to March 31, 2022 and prior to the issuance of these Condensed Consolidated Financial Statements. 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 Corebridge Financial, Inc., formerly known as SAFG Retirement Services, Inc. (Corebridge), 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 in the fourth quarter of 2021. As part of the separation, most of AIG’s investment operations were transferred to Corebridge 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 Corebridge, which currently consists of 11 directors. Pursuant to the definitive agreement, Blackstone will be required to hold its ownership interest in Corebridge 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 Corebridge (the IPO), with the transfer restrictions terminating in full on the fifth anniversary of the IPO. In the event that the IPO of Corebridge 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 Corebridge for shares of AIG’s common stock on the terms set forth in the definitive agreement. On November 1, 2021, Corebridge declared a dividend payable to AIG Parent in the amount of $ 8.3 billion. In connection with such dividend, Corebridge issued a promissory note to AIG Parent in the amount of $ 8.3 billion, which is required to be paid to AIG Parent prior to the IPO of Corebridge. On April 5, 2022, Corebridge issued senior unsecured notes in the aggregate principal amount of $ 6.5 billion, the proceeds of which were used to repay a portion of the $ 8.3 billion promissory note previously issued by Corebridge to AIG. 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. 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. For additional information regarding the debt issuance of Corebridge, see Note 16. 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. 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 ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. Summary of Significant Accounting Policies Accounting Standards Adopted 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 accumulated other comprehensive income (loss) (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 Reinsurance Company Ltd. (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 modified coinsurance (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. Troubled Debt Restructuring and Vintage Disclosures In March 2022, the FASB issued an accounting standard update that eliminates the accounting guidance for troubled debt restructurings for creditors and amends the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination. The standard also updates the requirements for accounting for credit losses by adding enhanced disclosures for creditors related to loan refinancings and restructurings for borrowers experiencing financial difficulty. Because the Company has already adopted the current expected credit loss (CECL) model, the amendments in this standard are effective for fiscal years beginning after December 15, 2022, including interim periods within those years. We are assessing the impact of this standard. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
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. 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 Property, Liability, Financial Lines, and Specialty. – Personal Insurance – consists of Accident & Health and Personal Lines. 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. 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: Three Months Ended March 31, 2022 2021 Adjusted Adjusted Adjusted Pre-tax Adjusted Pre-tax (in millions) Revenues Income (Loss) Revenues Income (Loss) General Insurance North America $ 2,789 $ 256 (a) $ 2,388 $ ( 202) (a) International 3,467 190 (a) 3,478 275 (a) Net investment income 765 765 772 772 Total General Insurance 7,021 1,211 6,638 845 Life and Retirement Individual Retirement 1,385 384 1,477 532 Group Retirement 744 225 806 307 Life Insurance 1,287 ( 9) 1,333 ( 40) Institutional Markets 549 124 364 142 Total Life and Retirement 3,965 724 3,980 941 Other Operations Other Operations before consolidation and eliminations 294 ( 288) 324 ( 354) Consolidation and eliminations ( 136) ( 133) ( 180) ( 176) Total Other Operations 158 ( 421) 144 ( 530) Total 11,144 1,514 10,762 1,256 Reconciling items: Changes in fair value of securities used to hedge guaranteed living benefits 14 13 18 22 Changes in benefit reserves and DAC, VOBA and DSI related to net realized gains (losses) - ( 273) - ( 203) Changes in the fair value of equity securities ( 27) ( 27) 22 22 Other income (expense) - net ( 7) - ( 6) - Gain on extinguishment of debt - - - 8 Net investment income on Fortitude Re funds withheld assets 291 291 486 486 Net realized gains (losses) on Fortitude Re funds withheld assets ( 140) ( 140) 173 173 Net realized gains on Fortitude Re funds withheld embedded derivative 3,318 3,318 2,382 2,382 Net realized gains (b) 1,181 1,188 617 627 Net gain on divestitures - 40 - 7 Non-operating litigation reserves and settlements 34 34 - - Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - 19 Net loss reserve discount benefit - 20 - 32 Integration and transaction costs associated with acquiring or divesting businesses - ( 46) - ( 9) Restructuring and other costs - ( 93) - ( 74) Non-recurring costs related to regulatory or accounting changes - ( 4) - ( 20) Revenues and pre-tax income $ 15,808 $ 5,835 $ 14,454 $ 4,728 (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). |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 4. Fair Value Measurements Fair Value Measurements on a Recurring Basis Assets and liabilities recorded at fair value in the Condensed 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. 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: March 31, 2022 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 $ 8 $ 7,859 $ - $ - $ - $ 7,867 Obligations of states, municipalities and political subdivisions - 12,426 1,087 - - 13,513 Non-U.S. governments 112 14,862 8 - - 14,982 Corporate debt - 158,884 2,744 - - 161,628 RMBS - 15,610 8,925 - - 24,535 CMBS - 14,236 864 - - 15,100 CDO/ABS - 7,818 11,776 - - 19,594 Total bonds available for sale 120 231,695 25,404 - - 257,219 Other bond securities: U.S. government and government sponsored entities - 1,689 - - - 1,689 Obligations of states, municipalities and political subdivisions - 98 - - - 98 Non-U.S. governments - 85 - - - 85 Corporate debt - 1,081 260 - - 1,341 RMBS - 113 199 - - 312 CMBS - 284 33 - - 317 CDO/ABS - 272 2,468 - - 2,740 Total other bond securities - 3,622 2,960 - - 6,582 Equity securities 639 50 6 - - 695 Other invested assets (b) - 145 1,935 - - 2,080 Derivative assets (c) Interest rate contracts 1 3,998 4 - - 4,003 Foreign exchange contracts - 1,404 - - - 1,404 Equity contracts 31 182 190 - - 403 Commodity contracts - 3 - - - 3 Credit contracts - - 1 - - 1 Other contracts - - 14 - - 14 Counterparty netting and cash collateral - - - ( 3,295) ( 1,877) ( 5,172) Total derivative assets 32 5,587 209 ( 3,295) ( 1,877) 656 Short-term investments 2,140 1,290 - - - 3,430 Other assets - - 108 - - 108 Separate account assets 97,083 3,767 - - - 100,850 Total $ 100,014 $ 246,156 $ 30,622 $ ( 3,295) $ ( 1,877) $ 371,620 Liabilities: Policyholder contract deposits $ - $ 50 $ 8,030 $ - $ - $ 8,080 Derivative liabilities (c) Interest rate contracts 2 4,402 - - - 4,404 Foreign exchange contracts - 665 - - - 665 Equity contracts 7 36 12 - - 55 Credit contracts - 13 32 - - 45 Counterparty netting and cash collateral - - - ( 3,295) ( 1,478) ( 4,773) Total derivative liabilities 9 5,116 44 ( 3,295) ( 1,478) 396 Fortitude Re funds withheld payable - - 2,206 - - 2,206 Long-term debt - 1,782 - - - 1,782 Total $ 9 $ 6,948 $ 10,280 $ ( 3,295) $ ( 1,478) $ 12,464 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 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 Long-term debt - 1,871 - - - 1,871 Total $ 2 $ 6,340 $ 15,641 $ ( 2,779) $ ( 1,089) $ 18,115 (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 $ 9.5 billion and $ 8.4 billion as of March 31, 2022 and December 31, 2021, respectively. (c) Presented as part of Other assets and Other liabilities on the Condensed Consolidated Balance Sheets. Changes in Level 3 Recurring Fair Value Measurements The following tables present changes during the three-month periods ended March 31, 2022 and 2021 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 Condensed Consolidated Balance Sheets at March 31, 2022 and 2021: 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 Period in Income Income (Loss) Net In Out Other of Period at End of Period at End of Period Three Months Ended March 31, 2022 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 1,431 $ 2 $ ( 285) $ ( 61) $ - $ - $ - $ 1,087 $ - $ ( 273) Non-U.S. governments 7 - - - 1 - - 8 - - Corporate debt 2,641 ( 11) ( 73) 177 130 ( 120) - 2,744 - ( 69) RMBS 10,378 130 ( 553) ( 608) - ( 422) - 8,925 - ( 544) CMBS 1,190 8 ( 67) 32 - ( 299) - 864 - ( 64) CDO/ABS 11,215 16 ( 501) 545 1,115 ( 614) - 11,776 - ( 501) Total bonds available for sale 26,862 145 ( 1,479) 85 1,246 ( 1,455) - 25,404 - ( 1,451) Other bond securities: Corporate debt 134 - - 77 61 ( 12) - 260 - - RMBS 196 ( 5) ( 1) 9 - - - 199 ( 8) - CMBS 35 ( 2) - - - - - 33 ( 2) - CDO/ABS 2,332 ( 114) - 195 57 ( 2) - 2,468 ( 161) - Total other bond securities 2,697 ( 121) ( 1) 281 118 ( 14) - 2,960 ( 171) - Equity securities 6 - ( 1) 1 - - - 6 - - Other invested assets 1,948 112 ( 4) ( 15) 47 ( 153) - 1,935 121 - Other assets 114 - - ( 6) - - - 108 - - Total $ 31,627 $ 136 $ ( 1,485) $ 346 $ 1,411 $ ( 1,622) $ - $ 30,413 $ ( 50) $ ( 1,451) 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 Period in Income Income (Loss) Net In Out Other of Period at End of Period at End of Period Liabilities: Policyholder contract deposits $ 9,682 $ ( 1,797) $ - $ 145 $ - $ - $ - $ 8,030 $ 1,983 $ - Derivative liabilities, net: Interest rate contracts - ( 1) - ( 3) - - - ( 4) 1 - Foreign exchange contracts ( 1) - - 1 - - - - ( 1) - Equity contracts ( 444) 301 - ( 35) - - - ( 178) ( 241) - Credit contracts 30 1 - - - - - 31 ( 1) - Other contracts ( 13) ( 18) - 17 - - - ( 14) 18 - Total derivative liabilities, net (a) ( 428) 283 - ( 20) - - - ( 165) ( 224) - Fortitude Re funds withheld payable 5,922 ( 3,318) - ( 398) - - - 2,206 3,480 - Total $ 15,176 $ ( 4,832) $ - $ ( 273) $ - $ - $ - $ 10,071 $ 5,239 $ - 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 Period in Income Income (Loss) Net In Out Other of Period at End of Period at End of Period Three Months Ended March 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,105 $ 3 $ ( 159) $ ( 53) $ - $ - $ - $ 1,896 $ - $ ( 10) Non-U.S. governments 5 - - - 1 - - 6 - - Corporate debt 2,349 ( 1) ( 10) 177 187 ( 132) - 2,570 - ( 159) RMBS 11,694 167 64 ( 431) - ( 30) - 11,464 - ( 14) CMBS 922 9 ( 56) 173 56 - - 1,104 - ( 56) CDO/ABS 9,814 16 ( 14) ( 164) 454 ( 504) - 9,602 - 64 Total bonds available for sale 26,889 194 ( 175) ( 298) 698 ( 666) - 26,642 - ( 175) Other bond securities: RMBS 139 3 - ( 16) - - - 126 ( 98) - CMBS 47 ( 1) - ( 6) 6 - - 46 ( 2) - CDO/ABS 2,512 ( 11) - ( 155) - - - 2,346 2 - Total other bond securities 2,698 ( 9) - ( 177) 6 - - 2,518 ( 98) - Equity securities 51 11 3 ( 11) 75 ( 1) - 128 3 - Other invested assets 1,827 142 ( 6) ( 66) - - - 1,897 123 - Other assets 113 - - - - - - 113 - - Total $ 31,578 $ 338 $ ( 178) $ ( 552) $ 779 $ ( 667) $ - $ 31,298 $ 28 $ ( 175) 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 Period in Income Income (Loss) Net In Out Other of Period at End of Period at End of Period Liabilities: Policyholder contract deposits $ 9,798 $ ( 2,260) $ - $ 79 $ - $ - $ - $ 7,617 $ 2,570 $ - Derivative liabilities, net: Interest rate contracts - - - - - - - - - - Foreign exchange contracts ( 2) 1 - 1 - - - - ( 1) - Equity contracts ( 151) ( 26) - ( 85) - 40 - ( 222) ( 118) - Credit contracts 42 5 - ( 3) - - - 44 ( 3) - Other contracts ( 8) ( 17) - 16 - - - ( 9) 16 - Total derivative liabilities, net (a) ( 119) ( 37) - ( 71) - 40 - ( 187) ( 106) - Fortitude Re funds withheld payable 6,042 ( 2,382) - ( 173) - - - 3,487 2,955 - Total $ 15,721 $ ( 4,679) $ - $ ( 165) $ - $ 40 $ - $ 10,917 $ 5,419 $ - (a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only. Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities shown above are reported in the Condensed Consolidated Statements of Income (Loss) as follows: Net Investment Net Realized Other (in millions) Income Gains (Losses) Income Total Three Months Ended March 31, 2022 Assets: Bonds available for sale $ 164 $ ( 19) $ - $ 145 Other bond securities ( 121) - - ( 121) Other invested assets 112 - - 112 Three Months Ended March 31, 2021 Assets: Bonds available for sale $ 185 $ 9 $ - $ 194 Other bond securities ( 9) - - ( 9) Equity securities 11 - - 11 Other invested assets 142 - - 142 Net Investment Net Realized Other (in millions) Income (Gains) Losses Income Total Three Months Ended March 31, 2022 Liabilities: Policyholder contract deposits * $ - $ ( 1,797) $ - $ ( 1,797) Derivative liabilities, net - 298 ( 15) 283 Fortitude Re funds withheld payable - ( 3,318) - ( 3,318) Three Months Ended March 31, 2021 Liabilities: Policyholder contract deposits * $ - $ ( 2,260) $ - $ ( 2,260) Derivative liabilities, net - ( 23) ( 14) ( 37) Fortitude Re funds withheld payable - ( 2,382) - ( 2,382) * Primarily embedded derivatives. The following table presents the gross components of purchases, sales, issuances and settlements, net, shown above, for the three-month periods ended March 31, 2022 and 2021 related to Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets: Issuances Purchases, Sales, and Issuances and (in millions) Purchases Sales Settlements (a) Settlements, Net (a) Three Months Ended March 31, 2022 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 1 $ ( 60) $ ( 2) $ ( 61) Corporate debt 9 - 168 177 RMBS 109 - ( 717) ( 608) CMBS 70 - ( 38) 32 CDO/ABS 886 - ( 341) 545 Total bonds available for sale 1,075 ( 60) ( 930) 85 Other bond securities: Corporate debt 19 - 58 77 RMBS 17 - ( 8) 9 CDO/ABS 323 - ( 128) 195 Total other bond securities 359 - ( 78) 281 Equity securities - - 1 1 Other invested assets 258 - ( 273) ( 15) Other assets - - ( 6) ( 6) Total $ 1,692 $ ( 60) $ ( 1,286) $ 346 Liabilities: Policyholder contract deposits $ - $ 217 $ ( 72) $ 145 Derivative liabilities, net ( 85) 2 63 ( 20) Fortitude Re funds withheld payable - - ( 398) ( 398) Total $ ( 85) $ 219 $ ( 407) $ ( 273) Three Months Ended March 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 8 $ ( 20) $ ( 41) $ ( 53) Corporate debt 741 ( 1) ( 563) 177 RMBS 164 - ( 595) ( 431) CMBS 193 - ( 20) 173 CDO/ABS 376 ( 49) ( 491) ( 164) Total bonds available for sale 1,482 ( 70) ( 1,710) ( 298) Other bond securities: RMBS - - ( 16) ( 16) CMBS - ( 6) - ( 6) CDO/ABS - ( 39) ( 116) ( 155) Total other bond securities - ( 45) ( 132) ( 177) Equity securities - - ( 11) ( 11) Other invested assets 198 - ( 264) ( 66) Total $ 1,680 $ ( 115) $ ( 2,117) $ ( 552) Liabilities: Policyholder contract deposits $ - $ 191 $ ( 112) $ 79 Derivative liabilities, net ( 52) 1 ( 20) ( 71) Fortitude Re funds withheld payable - - ( 173) ( 173) Total $ ( 52) $ 192 $ ( 305) $ ( 165) (a) There were issuances during the three-month periods ended March 31, 2022 and 2021. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at March 31, 2022 and 2021 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities). Transfers of Level 3 Assets and Liabilities The Net realized and unrealized gains (losses) included in income (loss) or Other comprehensive income (loss) as shown in the table above excludes $( 34) million and $ 19 million of net gains (losses) related to assets and liabilities transferred into Level 3 during the three-month periods ended March 31, 2022 and 2021, respectively, and includes $( 41) million and $( 4) million of net gains (losses) related to assets and liabilities transferred out of Level 3 during the three-month periods ended March 31, 2022 and 2021, respectively. Transfers of Level 3 Assets During the three-month periods ended March 31, 2022 and 2021, transfers into Level 3 assets primarily included certain investments in private placement corporate debt, RMBS, CMBS and CDO/ABS. Transfers of private placement corporate debt and certain ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity. The transfers of investments in RMBS, CMBS and CDO and certain ABS into Level 3 assets were due to diminished market transparency and liquidity for individual security types. During the three-month periods ended March 31, 2022 and 2021, transfers out of Level 3 assets primarily included private placement and other corporate debt, CMBS, RMBS, CDO/ABS and certain investments in municipal securities. Transfers of corporate debt, RMBS, CMBS, CDO/ABS and certain investments in municipal securities out of Level 3 assets were based on consideration of market liquidity as well as related transparency of pricing and associated observable inputs for these investments. Transfers of certain investments in private placement corporate debt and certain ABS out of Level 3 assets were primarily the result of using observable pricing information that reflects the fair value of those securities without the need for adjustment based on our own assumptions regarding the characteristics of a specific security or the current liquidity in the market. Transfers of Level 3 Liabilities There were no significant transfers of derivative or other liabilities into or out of Level 3 for the three-month periods ended March 31, 2022 and 2021. QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and includes only those instruments for which information about the inputs is reasonably available to us, such as data from independent third-party valuation service providers. Because input information from third-parties with respect to certain Level 3 instruments (primarily CDO/ABS) may not be reasonably available to us, balances shown below may not equal total amounts reported for such Level 3 assets and liabilities: Fair Value at March 31, Valuation Range (in millions) 2022 Technique Unobservable Input (b) (Weighted Average) (c) Assets: Obligations of states, municipalities and political subdivisions $ 1,057 Discounted cash flow Yield 3.70% - 4.49% ( 4.10%) Corporate debt 2,563 Discounted cash flow Yield 1.98% - 6.54% ( 4.26%) RMBS (a) 7,006 Discounted cash flow Constant prepayment rate 4.90% - 10.37% ( 7.63%) Loss severity 38.04% - 67.75% ( 52.90%) Constant default rate 1.23% - 3.47% ( 2.35%) Yield 3.54% - 5.34% ( 4.44%) CDO/ABS (a) 8,496 Discounted cash flow Yield 3.44% - 6.15% ( 4.79%) CMBS 626 Discounted cash flow Yield 3.17% - 5.62% ( 4.40%) Liabilities (d) Embedded derivatives within Policyholder contract deposits: Variable annuity guaranteed minimum withdrawal benefits (GMWB) 1,667 Discounted cash flow Equity volatility 5.85% - 46.25% 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) 0.17% - 1.72% Fixed Index annuities including certain GMWB 5,673 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) 0.17% - 1.72% Indexed life 690 Discounted cash flow Base lapse rate 0.00% - 37.97% Mortality rate 0.00% - 100.00% NPA (f) 0.17% - 1.72% 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: 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% Fixed 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% (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 non-performance risk adjustment (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 March 31, 2022 and December 31, 2021 was approximately $ 1.0 billion and $ 1.2 billion, respectively. The remaining guaranteed minimum riders on the fixed 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. Interrelationships between Unobservable Inputs We consider unobservable inputs to be those for which market data is not available and that are developed using the best information available to us about the assumptions that market participants would use when pricing the asset or liability. Relevant inputs vary depending on the nature of the instrument being measured at fair value. The following paragraphs provide a general description of significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. In practice, simultaneous changes in assumptions may not always have a linear effect on the inputs discussed below. Interrelationships may also exist between observable and unobservable inputs. Such relationships have not been included in the discussion below. For each of the individual relationships described below, the inverse relationship would also generally apply. Fixed Maturity Securities The significant unobservable input used in the fair value measurement of fixed maturity securities is yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. The yield may be affected by other factors including constant prepayment rates, loss severity, and constant default rates. In general, increases in the yield would decrease the fair value of investments, and conversely, decreases in the yield would increase the fair value of investments. Embedded derivatives within Policyholder contract deposits Embedded derivatives reported within Policyholder contract deposits include interest crediting rates based on market indices within fixed index annuities, indexed life, and GICs as well as GMWB within variable annuity and certain fixed index annuity products. For any given contract, assumptions for unobservable inputs vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. The following unobservable inputs are used for valuing embedded derivatives measured at fair value: Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. Increases in assumed volatility will generally increase the fair value of both the projected cash flows from rider fees as well as the projected cash flows related to benefit payments. Therefore, the net change in the fair value of the liability may be either a decrease or an increase, depending on the relative changes in projected rider fees and projected benefit payments. Equity / interest rate correlation estimates the relationship between changes in equity returns and interest rates in the economic scenario generator used to value our GMWB embedded derivatives. In general, a higher positive correlation assumes that equity markets and interest rates move in a more correlated fashion, which generally increases the fair value of the liability. Base lapse rate assumptions are determined by company experience and are adjusted at the contract level using a dynamic lapse function, which reduces the base lapse rate when the contract is in-the-money (when the contract holder’s guaranteed value, as estimated by the company, is worth more than their underlying account value). Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. Increases in assumed lapse rates will generally decrease the fair value of the liability, as fewer policyholders would persist to collect guaranteed withdrawal amounts. Mortality rate assumptions, which vary by age and gender, are based on company experience and include a mortality improvement assumption. Increases in assumed mortality rates will decrease the fair value of the liability, while lower mortality rate assumptions will generally increase the fair value of the liability, because guaranteed payments will be made for a longer period of time. Utilization assumptions estimate the timing when policyholders with a GMWB will elect to utilize their benefit and begin taking withdrawals. The assumptions may vary by the type of guarantee, tax-qualified status, the contract’s withdrawal history and the age of the policyholder. Utilization assumptions are based on company experience and other factors, which includes partial withdrawal behavior. Increases in assumed utilization rates will generally increase the fair value of the liability. Option budget estimates the expected long-term cost of options used to hedge exposures associated with equity price changes. The level of option budgets determines future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives. Non-performance or “own credit” risk adjustment used in the valuation of embedded derivatives, which reflects a market participant’s view of our claims-paying ability by incorporating a different spread (the NPA spread) to the curve used to discount projected benefit cash flows. When corporate credit spreads widen, the change in the NPA spread generally reduces the fair value of the embedded derivative liabilities, resulting in a gain, and when corporate credit spreads narrow or tighten, the change in the NPA spread generally increases the fair value of the embedded derivative liabilities, resulting in a loss. In addition to changes driven by credit market-related movements in the NPA spread, the NPA balance also reflects changes in business activity and in the net amount at risk from the underlying guaranteed living benefits offered by variable and certain fixed index annuities. Embedded derivatives within reinsurance contracts The fair value of embedded derivatives associated with funds withheld reinsurance contracts is determined based upon a total return swap technique with reference to the fair value of the investments held by AIG related to AIG’s funds withheld payable. The fair value of the underlying assets is generally based on market observable inputs using industry standard valuation techniques. The valuation also requires certain significant inputs, which are generally not observable and accordingly, the valuation is considered Level 3 in the fair value hierarchy. Investments in Certain Entities Carried at Fair Value Using Net Asset Value Per Share The following table includes information related to our investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate net asset value per share (or its equivalent). For these investments, which are measured at fair value on a recurring basis, we use the net asset value per share to measure fair value. March 31, 2022 December 31, 2021 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 $ 2,993 $ 1,979 $ 2,768 $ 1,798 Real assets Investments in real estate properties, agricultural and infrastructure assets, including power plants and other energy producing assets 1,515 613 904 487 Venture capital Early-stage |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2022 | |
INVESTMENTS | |
INVESTMENTS | 5. Investments Securities Available for Sale The following table presents the amortized cost and fair value of our available for sale securities: Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair (in millions) Cost Losses (a) Gains Losses Value March 31, 2022 Bonds available for sale: U.S. government and government sponsored entities $ 7,976 $ - $ 130 $ ( 239) $ 7,867 Obligations of states, municipalities and political subdivisions 13,105 - 674 ( 266) 13,513 Non-U.S. governments 15,408 ( 39) 284 ( 671) 14,982 Corporate debt 163,889 ( 137) 5,120 ( 7,244) 161,628 Mortgage-backed, asset-backed and collateralized: RMBS 23,644 ( 13) 1,551 ( 647) 24,535 CMBS 15,413 - 138 ( 451) 15,100 CDO/ABS 20,045 ( 2) 85 ( 534) 19,594 Total mortgage-backed, asset-backed and collateralized 59,102 ( 15) 1,774 ( 1,632) 59,229 Total bonds available for sale (b) $ 259,480 $ ( 191) $ 7,982 $ ( 10,052) $ 257,219 December 31, 2021 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 (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 March 31, 2022 and December 31, 2021, bonds available for sale held by us that were below investment grade or not rated totaled $ 24.8 billion or 10 percent and $ 27.0 billion or 10 percent, 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 March 31, 2022 Bonds available for sale: U.S. government and government sponsored entities $ 5,488 $ 205 $ 441 $ 34 $ 5,929 $ 239 Obligations of states, municipalities and political subdivisions 3,468 248 104 18 3,572 266 Non-U.S. governments 7,062 377 1,915 294 8,977 671 Corporate debt 77,592 5,689 10,362 1,531 87,954 7,220 RMBS 9,499 475 1,650 137 11,149 612 CMBS 9,615 423 220 28 9,835 451 CDO/ABS 15,337 512 394 22 15,731 534 Total bonds available for sale $ 128,061 $ 7,929 $ 15,086 $ 2,064 $ 143,147 $ 9,993 December 31, 2021 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 At March 31, 2022, we held 26,173 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 3,631 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). 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). We did not recognize the unrealized losses in earnings on these fixed maturity securities at March 31, 2022 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 March 31, 2022 Due in one year or less $ 7,577 $ 7,574 Due after one year through five years 50,250 49,857 Due after five years through ten years 47,081 46,347 Due after ten years 95,294 94,212 Mortgage-backed, asset-backed and collateralized 59,087 59,229 Total $ 259,289 $ 257,219 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: Three Months Ended March 31, 2022 2021 Gross Gross Gross Gross Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Fixed maturity securities $ 97 $ 236 $ 460 $ 71 For the three-month periods ended March 31, 2022 and 2021, the aggregate fair value of available for sale securities sold was $ 4.8 billion and $ 6.4 billion, respectively, which resulted in net realized gains (losses) of $( 139) million and $ 389 million, respectively. Included within the net realized gains (losses) are $( 32) million and $ 295 million of net realized gains (losses) for the three-month periods ended March 31, 2022 and 2021, 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. 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: March 31, 2022 December 31, 2021 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 1,689 23 % $ 1,750 25 % Obligations of states, municipalities and political subdivisions 98 1 97 1 Non-U.S. governments 85 1 76 1 Corporate debt 1,341 18 1,050 15 Mortgage-backed, asset-backed and collateralized: RMBS 312 4 411 6 CMBS 317 4 315 4 CDO/ABS and other collateralized 2,740 38 2,579 37 Total mortgage-backed, asset-backed and collateralized 3,369 46 3,305 47 Total fixed maturity securities 6,582 89 6,278 89 Equity securities 695 11 739 11 Total $ 7,277 100 % $ 7,017 100 % Other Invested Assets The following table summarizes the carrying amounts of other invested assets: March 31, December 31, (in millions) 2022 2021 Alternative investments (a) (b) $ 11,583 $ 10,951 Investment real estate (c) 2,627 2,727 All other investments (d) 1,976 1,990 Total $ 16,186 $ 15,668 (a) At March 31, 2022, included hedge funds of $ 1.8 billion and private equity funds of $ 9.7 billion. At December 31, 2021, included hedge funds of $ 2.0 billion, private equity funds of $ 8.9 billion. (b) At March 31, 2022, approximately 67 percent of our hedge fund portfolio is available for redemption in 2022. The remaining 33 percent will be available for redemption between 2023 and 2028. (c) Represents values net of accumulated depreciation. At March 31, 2022 and December 31, 2021, the accumulated depreciation was $ 802 million and $ 778 million, respectively. (d) Includes AIG’s ownership interest in Fortitude Group Holdings, LLC (FRL), which is recorded using the measurement alternative for equity securities. Our investment in FRL totaled $ 156 million and $ 100 million at March 31, 2022 and December 31, 2021, respectively. Net Investment Income The following table presents the components of Net investment income: Three Months Ended March 31, 2022 2021 Excluding Fortitude Fortitude Re Excluding Fortitude Fortitude Re Re Funds Funds Withheld Re Funds Funds Withheld (in millions) Withheld Assets Assets Total Withheld Assets Assets Total Available for sale fixed maturity securities, including short-term investments $ 2,041 $ 301 $ 2,342 $ 2,178 $ 377 $ 2,555 Other fixed maturity securities (a) ( 201) ( 118) ( 319) ( 102) - ( 102) Equity securities ( 27) - ( 27) 22 - 22 Interest on mortgage and other loans 453 46 499 414 47 461 Alternative investments (b) 669 71 740 572 69 641 Real estate - - - 59 - 59 Other investments (c) 157 - 157 140 1 141 Total investment income 3,092 300 3,392 3,283 494 3,777 Investment expenses 146 9 155 112 8 120 Net investment income $ 2,946 $ 291 $ 3,237 $ 3,171 $ 486 $ 3,657 (a) Included in the three-month periods ended March 31, 2022 and 2021 was income (loss) of $( 95) million and $( 81) 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 three-month periods ended March 31, 2022 and 2021 was income (loss) of $ 91 million and $ 83 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 The following table presents the components of Net realized gains (losses): Three Months Ended March 31, 2022 2021 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 Sales of fixed maturity securities $ ( 107) $ ( 32) $ ( 139) $ 94 $ 295 $ 389 Change in allowance for credit losses on fixed maturity securities ( 53) ( 40) ( 93) 51 2 53 Change in allowance for credit losses on loans ( 19) ( 8) ( 27) 41 ( 5) 36 Foreign exchange transactions ( 14) ( 9) ( 23) ( 49) ( 6) ( 55) Variable annuity embedded derivatives, net of related hedges 506 - 506 89 - 89 All other derivatives and hedge accounting 939 ( 56) 883 351 ( 117) 234 Sales of alternative investments and real estate investments 16 1 17 26 4 30 Other ( 27) 4 ( 23) 92 - 92 Net realized gains (losses) – excluding Fortitude Re funds withheld embedded derivative 1,241 ( 140) 1,101 695 173 868 Net realized gains on Fortitude Re funds withheld embedded derivative - 3,318 3,318 - 2,382 2,382 Net realized gains $ 1,241 $ 3,178 $ 4,419 $ 695 $ 2,555 $ 3,250 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: Three Months Ended March 31, (in millions) 2022 2021 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ ( 20,160) $ ( 11,649) Other investments ( 7) - Total increase (decrease) in unrealized appreciation (depreciation) of investments $ ( 20,167) $ ( 11,649) 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: Three Months Ended March 31, 2022 2021 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 $ ( 27) $ 475 $ 448 $ 22 $ 470 $ 492 Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period 94 ( 3) 91 ( 21) 24 3 Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date $ ( 121) $ 478 $ 357 $ 43 $ 446 $ 489 Evaluating Investments for AN ALLOWANCE FOR CREDIT LOSSES For a discussion of our policy for evaluating investments for an allowance for credit losses, see Note 5 to the Consolidated Financial Statements in the 2021 Annual Report. 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: Three Months Ended March 31, 2022 2021 Non- Non- (in millions) Structured Structured Total Structured Structured Total Balance, beginning of period $ 8 $ 90 $ 98 $ 17 $ 169 $ 186 Additions: Securities for which allowance for credit losses were not previously recorded 49 128 177 2 13 15 Reductions: Securities sold during the period - ( 1) ( 1) ( 1) ( 4) ( 5) 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 ( 42) ( 42) ( 84) ( 4) ( 64) ( 68) Write-offs charged against the allowance - - - - ( 6) ( 6) Other - 1 1 - - - Balance, end of period $ 15 $ 176 $ 191 $ 14 $ 108 $ 122 Purchased Credit Deteriorated (PCD) 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 the three-month periods ended March 31, 2022 and 2021. 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 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. The following table presents the fair value of securities pledged to counterparties under secured financing transactions, including repurchase and securities lending agreements: (in millions) March 31, 2022 December 31, 2021 Fixed maturity securities available for sale $ 3,277 $ 3,583 Other bond securities, at fair value $ 31 $ - At March 31, 2022 and December 31, 2021, amounts borrowed under repurchase and securities lending agreements totaled $ 3.6 billion and $ 3.7 billion, respectively. The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity: Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2022 Bonds available for sale: Non-U.S. governments $ 64 $ - $ - $ - $ - $ 64 Corporate debt 212 73 - - - 285 Total $ 276 $ 73 $ - $ - $ - $ 349 December 31, 2021 Bonds available for sale: Non-U.S. governments $ 48 $ - $ - $ - $ - $ 48 Corporate debt 128 61 22 - - 211 Total $ 176 $ 61 $ 22 $ - $ - $ 259 The following table presents the fair value of securities pledged under our securities lending agreements by collateral type and by remaining contractual maturity: Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2022 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ 149 $ - $ - $ - $ 149 Non-U.S. governments - 420 80 - - 500 Corporate debt - 1,812 469 - - 2,281 Other bond securities: Non-U.S. governments - - 9 - - 9 Corporate debt - - 20 - - 20 Total $ - $ 2,381 $ 578 $ - $ - $ 2,959 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 We also enter into agreements in which securities are purchased by us under agreements to resell (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. The following table presents information on the fair value of securities pledged to us under reverse repurchase agreements: (in millions) March 31, 2022 December 31, 2021 Securities collateral pledged to us $ 530 $ 1,839 At March 31, 2022 and December 31, 2021, the carrying value of reverse repurchase agreements totaled $ 0.5 billion and $ 1.9 billion, respectively. We do not currently offset any secured financing transactions. All such transactions are collateralized and margined on a daily basis consistent with market standards and subject to enforceable master netting arrangements with rights of set off. Insurance – Statutory and Other Deposits The total carrying value of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance contracts, was $ 12.6 billion and $ 13.5 billion at March 31, 2022 and December 31, 2021, respectively. Other Pledges and Restrictions Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs. We owned an aggregate of $ 212 million and $ 211 million of stock in FHLBs at March 31, 2022 and December 31, 2021, respectively. In addition, our subsidiaries have pledged securities available for sale and residential loans associated with borrowings and funding agreements from FHLBs, with a fair value of $ 5.0 billion and $ 1.5 billion, respectively, at March 31, 2022 and $ 5.1 billion and $ 1.5 billion, respectively, at December 31, 2021. Certain GIAs have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our long-term debt ratings. The actual amount of collateral required to be posted to the counterparties in the event of such downgrades, and the aggregate amount of payments that we could be required to make, depend on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. The fair value of securities pledged as collateral with respect to these obligations was approximately $ 1.5 billion and $ 1.4 billion, at March 31, 2022 and December 31, 2021, 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. Investments held in escrow accounts or otherwise subject to restriction as to their use were $ 530 million and $ 514 million, comprised of bonds available for sale and short-term investments at March 31, 2022 and December 31, 2021, respectively. Reinsurance transactions between AIG and Fortitude Re were structured as modco and loss portfolio transfer arrangements with funds withheld. |
LENDING ACTIVITIES
LENDING ACTIVITIES | 3 Months Ended |
Mar. 31, 2022 | |
LENDING ACTIVITIES | |
LENDING ACTIVITIES | 6. Lending Activities The following table presents the composition of Mortgage and other loans receivable, net: March 31, December 31, (in millions) 2022 2021 Commercial mortgages (a) $ 36,103 $ 35,665 Residential mortgages 5,666 5,492 Life insurance policy loans 1,816 1,843 Commercial loans, other loans and notes receivable (b) 4,502 3,677 Total mortgage and other loans receivable 48,087 46,677 Allowance for credit losses (c) ( 617) ( 629) Mortgage and other loans receivable, net $ 47,470 $ 46,048 (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 19 percent and 10 percent, respectively, at March 31, 2022 and 21 percent and 10 percent, respectively, at December 31, 2021). (b) Includes loans held for sale which are carried at lower of cost or market and are collateralized primarily by apartments. As of March 31, 2022 and December 31, 2021, the net carrying value of these loans were $ 105 million and $ 15 million, respectively. (c) Does not include allowance for credit losses of $ 106 million and $ 71 million, respectively, at March 31, 2022 and December 31, 2021, 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 March 31, 2022, $ 12 million and $ 210 million of residential mortgage loans and commercial mortgage loans, respectively, were placed on nonaccrual status. As of December 31, 2021, $ 7 million and $ 226 million of residential mortgage loans and commercial mortgage loans, respectively, were placed on nonaccrual status. Accrued interest is presented separately and is included in Accrued Investment Income on the Condensed Consolidated Balance Sheets. As of March 31, 2022, accrued interest receivable was $ 13 million and $ 127 million associated with residential mortgage loans and commercial mortgage loans, respectively. As of December 31, 2021, accrued interest receivable was $ 12 million and $ 126 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) March 31, 2022 (in millions) 2022 2021 2020 2019 2018 Prior Total >1.2X $ 1,573 $ 2,294 $ 1,667 $ 5,061 $ 3,882 $ 13,760 $ 28,237 1.00 - 1.20X 21 620 1,036 606 1,403 2,170 5,856 <1.00X - 1 25 71 640 1,273 2,010 Total commercial mortgages $ 1,594 $ 2,915 $ 2,728 $ 5,738 $ 5,925 $ 17,203 $ 36,103 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 The following table presents loan-to-value ratios (b) March 31, 2022 (in millions) 2022 2021 2020 2019 2018 Prior Total Less than 65% $ 1,070 $ 2,337 $ 2,276 $ 4,027 $ 4,756 $ 12,095 $ 26,561 65% to 75% 524 371 426 1,711 1,139 3,503 7,674 76% to 80% - 206 - - 30 470 706 Greater than 80% - 1 26 - - 1,135 1,162 Total commercial mortgages $ 1,594 $ 2,915 $ 2,728 $ 5,738 $ 5,925 $ 17,203 $ 36,103 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 (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 2.0X at March 31, 2022 and 1.9X at December 31, 2021. 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 March 31, 2022 and was 57 percent at December 31, 2021. 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 March 31, 2022 Credit Quality Performance Indicator: In good standing 627 $ 13,760 $ 9,592 $ 4,945 $ 4,554 $ 2,084 $ 420 $ 35,355 98 % Restructured (a) 10 - 353 140 - 137 - 630 2 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure 3 - 67 51 - - - 118 - Total (b) 640 $ 13,760 $ 10,012 $ 5,136 $ 4,554 $ 2,221 $ 420 $ 36,103 100 % Allowance for credit losses $ 101 $ 227 $ 106 $ 56 $ 33 $ 10 $ 533 1 % 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 % (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 Note 6 to the Consolidated Financial Statements in the 2021 Annual Report. (b) Does not reflect allowance for credit losses. The following table presents credit quality performance indicators for residential mortgages by year of vintage: March 31, 2022 (in millions) 2022 2021 2020 2019 2018 Prior Total FICO*: 780 and greater $ 93 $ 2,307 $ 693 $ 255 $ 95 $ 631 $ 4,074 720 - 779 90 763 179 85 34 191 1,342 660 - 719 1 84 30 18 11 69 213 600 - 659 - 4 2 3 2 17 28 Less than 600 - - - 1 - 8 9 Total residential mortgages $ 184 $ 3,158 $ 904 $ 362 $ 142 $ 916 $ 5,666 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 * 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 For a discussion of our accounting policy for evaluating Mortgage and other loans receivable for impairment see Note 6 to the Consolidated Financial Statements in the 2021 Annual Report. The following table presents a rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable (a) Three Months Ended March 31, 2022 2021 Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 545 $ 84 $ 629 $ 685 $ 129 $ 814 Loans charged off ( 4) - ( 4) - - - Net charge-offs ( 4) - ( 4) - - - Addition to (release of) allowance for loan losses ( 8) - ( 8) ( 23) ( 4) ( 27) Allowance, end of period $ 533 $ 84 $ 617 $ 662 $ 125 $ 787 (a) Does not include allowance for credit losses of $ 106 million and $ 70 million, respectively, at March 31, 2022 and 2021 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities. Our expectations and models used to estimate the allowance for losses on commercial and residential mortgage loans are regularly 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. During the three-month periods ended March 31, 2022 and 2021, loans with a carrying value of $ 115 million and $ 46 million, respectively, were modified in TDRs. |
REINSURANCE
REINSURANCE | 3 Months Ended |
Mar. 31, 2022 | |
REINSURANCE | |
REINSURANCE | 7. Reinsurance Fortitude RE Fortitude Re is the reinsurer of the majority of AIG’s run-off operations. The reinsurance transactions are 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. For additional information on Fortitude Re see Note 7 to the Consolidated Financial Statements in the 2021 Annual Report. 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: March 31, 2022 December 31, 2021 Carrying Fair Carrying Fair (in millions) Value Value Value Value Corresponding Accounting Policy Fixed maturity securities - available for sale (a) $ 26,513 $ 26,513 $ 31,815 $ 31,815 Fair value through other comprehensive income (loss) Fixed maturity securities - fair value option 2,711 2,711 1,983 1,983 Fair value through net investment income Commercial mortgage loans 3,889 3,940 3,637 3,859 Amortized cost Real estate investments 178 414 201 395 Amortized cost Private equity funds / hedge funds 1,724 1,724 1,606 1,606 Fair value through net investment income Policy loans 373 373 380 380 Amortized cost Short-term investments 81 81 50 50 Fair value through net investment income Funds withheld investment assets 35,469 35,756 39,672 40,088 Derivative assets, net (b) 72 72 81 81 Fair value through net realized gains (losses) Other (c) 653 653 602 602 Amortized cost Total $ 36,194 $ 36,481 $ 40,355 $ 40,771 (a) The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $( 3.3) billion ($( 2.6) billion after-tax) and $( 2.9) billion ($( 2.3) billion after-tax), respectively for the three months ended March 31, 2022 and 2021. (b) The derivative assets and liabilities have been presented net of cash collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 349 million and $ 16 million, respectively, as of March 31, 2022. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 389 million and $ 10 million, respectively, as of December 31, 2021. These derivative assets and liabilities are fully collateralized either by cash or securities. (c) Primarily comprised of Cash and Accrued investment income. The impact of the funds withheld arrangements with Fortitude Re was as follows: Three Months Ended March 31, (in millions) 2022 2021 Net underwriting income $ - $ - Net investment income - Fortitude Re funds withheld assets 291 486 Net realized gains (losses) on Fortitude Re funds withheld assets: Net realized gains (losses) - Fortitude Re funds withheld assets ( 140) 173 Net realized gains - Fortitude Re embedded derivatives 3,318 2,382 Net realized gains on Fortitude Re funds withheld assets 3,178 2,555 Income from continuing operations before income tax expense 3,469 3,041 Income tax expense (a) 728 639 Net income 2,741 2,402 Change in unrealized depreciation of all other investments (a) ( 2,638) ( 2,340) Comprehensive income $ 103 $ 62 (a) The income tax expense (benefit) and the tax impact in AOCI was computed using AIG’s U.S. statutory tax rate of 21 percent. 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 March 31, 2022 were $ 77.7 billion. As of that date, utilizing AIG’s ORRs, (i) approximately 93 percent of the reinsurance recoverables were investment grade, of which 53 percent related to General Insurance and 40 percent related to Life and Retirement; (ii) approximately 6 percent of the reinsurance recoverables were non-investment grade, the majority of which related to General Insurance; (iii) less than one one 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 noninvestment grade, the majority of which related to General Insurance; (iii) less than one one As of both March 31, 2022 and 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: Three Months Ended March 31, 2022 2021 General Life and General Life and (in millions) Insurance Retirement Total Insurance Retirement Total Balance, beginning of year $ 281 $ 101 $ 382 $ 292 $ 83 $ 375 Addition to (release of) allowance for expected credit losses and disputes, net 5 4 9 1 4 5 Write-offs charged against the allowance for credit losses and disputes ( 2) - ( 2) ( 4) - ( 4) Other changes 2 - 2 2 - 2 Balance, end of period $ 286 $ 105 $ 391 $ 291 $ 87 $ 378 There were no material recoveries of credit losses previously written off for the three-month periods ended March 31, 2022 and 2021. 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. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2022 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 8. Variable Interest Entities We enter into various arrangements with variable interest entities (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 Condensed Consolidated Balance Sheets: Real Estate and Investment Securitization (in millions) Entities (d) Vehicles Total March 31, 2022 Assets: Bonds available for sale $ - $ 5,581 $ 5,581 Other bond securities - 1,648 1,648 Equity securities 69 - 69 Mortgage and other loans receivable - 2,352 2,352 Other invested assets Alternative investments (a) 3,247 - 3,247 Investment real estate 2,191 - 2,191 Short-term investments 243 130 373 Cash 82 - 82 Accrued investment income - 17 17 Other assets 173 59 232 Total (b) $ 6,005 $ 9,787 $ 15,792 Liabilities: Debt of consolidated investment entities $ 1,694 $ 4,498 $ 6,192 Other (c) 112 117 229 Total $ 1,806 $ 4,615 $ 6,421 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 (a) Comprised primarily of investments in real estate joint ventures at March 31, 2022 and December 31, 2021. (b) The assets of each VIE can be used only to settle specific obligations of that VIE. (c) Comprised primarily of Other liabilities at March 31, 2022 and December 31, 2021. (d) At March 31, 2022 and December 31, 2021, off-balance sheet exposure primarily consisting of our insurance companies’ commitments to real estate and investment entities were $ 2.0 billion and $ 2.2 billion, respectively, of which commitments to external parties were $ 0.5 billion and $ 0.6 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. 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 March 31, 2022 Real estate and investment entities (a) $ 461,827 $ 8,021 $ 3,617 (c) $ 11,638 Other 1,745 248 749 (d) 997 Total $ 463,572 $ 8,269 $ 4,366 $ 12,635 December 31, 2021 Real estate and investment entities (a) $ 457,335 $ 7,650 $ 3,448 (c) $ 11,098 Other 1,738 237 528 (d) 765 Total $ 459,073 $ 7,887 $ 3,976 $ 11,863 (a) Comprised primarily of hedge funds and private equity funds. (b) At March 31, 2022 and December 31, 2021, $ 8.2 billion and $ 7.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (c) These amounts represent our unfunded commitments to invest in private equity funds and hedge funds. (d) 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. For additional information on VIEs see Note 9 to the Consolidated Financial Statements in the 2021 Annual Report. |
DERIVATIVES AND HEDGE ACCOUNTIN
DERIVATIVES AND HEDGE ACCOUNTING | 3 Months Ended |
Mar. 31, 2022 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
DERIVATIVES AND HEDGE ACCOUNTING | 9. 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, credit default swaps (CDSs), total return swaps and purchases of investments with embedded derivatives, such as equity-linked notes and convertible bonds. The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Condensed Consolidated Balance Sheets: March 31, 2022 December 31, 2021 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 $ 242 $ 3 $ 918 $ 28 $ 265 $ 5 $ 895 $ 11 Foreign exchange contracts 7,522 571 3,276 195 5,431 467 5,828 197 Derivatives not designated as hedging instruments: (a) Interest rate contracts 51,215 4,000 53,844 4,376 47,499 3,868 42,113 3,622 Foreign exchange contracts 11,132 833 6,672 470 7,905 722 9,997 524 Equity contracts 26,873 403 4,250 55 27,423 681 5,091 53 Commodity contracts 196 3 138 - 303 4 219 - Credit contracts (b) 2,789 1 933 45 3,790 1 936 47 Other contracts (c) 44,152 14 - - 43,892 13 51 - Total derivatives, gross $ 144,121 $ 5,828 $ 70,031 $ 5,169 $ 136,508 $ 5,761 $ 65,130 $ 4,454 Counterparty netting (d) ( 3,295) ( 3,295) ( 2,779) ( 2,779) Cash collateral (e) ( 1,877) ( 1,478) ( 2,139) ( 1,089) Total derivatives on Condensed Consolidated Balance Sheets (f) $ 656 $ 396 $ 843 $ 586 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b) As of March 31, 2022 and December 31, 2021, included CDSs on super senior multi-sector CDOs with a net notional amount of $ 94 million and $ 97 million (fair value liability of $ 31 million and $ 30 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 March 31, 2022 and December 31, 2021. Fair value of liabilities related to bifurcated embedded derivatives was $ 10.3 billion and $ 14.5 billion, respectively, at March 31, 2022 and December 31, 2021. A bifurcated embedded derivative is generally presented with the host contract in the Condensed 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 $ 2.6 billion at March 31, 2022 and $ 2.7 billion at December 31, 2021. 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 $ 2.0 billion and $ 2.4 billion at March 31, 2022 and December 31, 2021, 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 Condensed 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 three-month periods ended March 31, 2022 and 2021, we recognized gains (losses) of $ 87 million and $ 101 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 Condensed Consolidated Statements of Income (Loss): Gains/(Losses) Recognized in Income for: Hedging Excluded Hedged (in millions) Derivatives (a) Components (b) Items Net Impact Three Months Ended March 31, 2022 Interest rate contracts: Interest credited to policyholder account balances $ ( 21) $ - $ 23 $ 2 Net investment income (loss) 1 - ( 1) - Foreign exchange contracts: Net realized gains/(losses) 109 42 ( 109) 42 Three Months Ended March 31, 2021 Interest rate contracts: Interest credited to policyholder account balances $ ( 4) $ - $ 6 $ 2 Net investment income (loss) 8 - ( 7) 1 Foreign exchange contracts: Net realized gains/(losses) 32 ( 29) ( 32) ( 29) (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 Condensed Consolidated Statements of Income (Loss): Gains (Losses) Three Months Ended March 31, Recognized in Income (in millions) 2022 2021 By Derivative Type: Interest rate contracts $ ( 613) $ ( 1,545) Foreign exchange contracts 236 ( 87) Equity contracts ( 204) ( 519) Commodity contracts ( 4) - Credit contracts ( 1) ( 5) Other contracts 18 15 Embedded derivatives 5,285 4,839 Total $ 4,717 $ 2,698 By Classification: Policy fees $ 15 $ 15 Net investment income ( 1) ( 12) Net realized gains - excluding Fortitude Re funds withheld assets 1,448 440 Net realized gains on Fortitude Re funds withheld assets (a) 3,262 2,265 Policyholder benefits and claims incurred ( 7) ( 10) Total $ 4,717 $ 2,698 (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 March 31, 2022, 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 $ 26 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 $ 142 million and $ 206 million at March 31, 2022 and December 31, 2021, respectively. The aggregate fair value of assets posted as collateral under these contracts at March 31, 2022 and December 31, 2021, was approximately $ 163 million and $ 239 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. Our investments in these hybrid securities are reported as Other bond securities in the Condensed Consolidated Balance Sheets. The fair values of these hybrid securities were $ 1.8 billion and $ 2.0 billion at March 31, 2022 and December 31, 2021, respectively. These securities have par amounts of $ 4.5 billion and $ 4.6 billion at March 31, 2022 and December 31, 2021, respectively, and have remaining stated maturity dates that extend to 2052. |
INSURANCE LIABILITIES
INSURANCE LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
INSURANCE LIABILITIES | |
INSURANCE LIABILITIES | 10. 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. 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. 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. 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 or reserve releases. Our gross loss reserves before reinsurance and discount are net of contractual deductible recoverable amounts due from policyholders of approximately $ 12.3 billion at both March 31, 2022 and December 31, 2021. 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 March 31, 2022 and December 31, 2021, we held collateral of approximately $ 8.5 billion and $ 8.6 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 March 31, 2022 and December 31, 2021. The following table presents the rollforward of activity in loss reserves: Three Months Ended March 31, (in millions) 2022 2021 Liability for unpaid loss and loss adjustment expenses, beginning of period $ 79,026 $ 77,720 Reinsurance recoverable ( 35,213) ( 34,431) Net Liability for unpaid loss and loss adjustment expenses, beginning of period 43,813 43,289 Losses and loss adjustment expenses incurred : Current year 3,882 3,925 Prior years, excluding discount and amortization of deferred gain ( 51) 16 Prior years, discount charge (benefit) 4 ( 18) Prior years, amortization of deferred gain on retroactive reinsurance (a) ( 42) ( 72) Total losses and loss adjustment expenses incurred 3,793 3,851 Losses and loss adjustment expenses paid : Current year ( 323) ( 328) Prior years ( 3,442) ( 3,584) Total losses and loss adjustment expenses paid ( 3,765) ( 3,912) Other changes : Foreign exchange effect 4 244 Retroactive reinsurance adjustment (net of discount) (b) 17 89 Total other changes 21 333 Liability for unpaid loss and loss adjustment expenses, end of period: Net liability for unpaid losses and loss adjustment expenses 43,862 43,561 Reinsurance recoverable 34,321 35,271 Total $ 78,183 $ 78,832 (a) Includes $ 4 million and $ 17 million for the retroactive reinsurance agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc. (Berkshire), covering U.S. asbestos exposures for the three-month periods ended March 31, 2022 and 2021, respectively. (b) Includes benefit (charge) from change in discount on retroactive reinsurance in the amount of $ million for both the three-month periods ended March 31, 2022 and 2021. On January 20, 2017, we entered into an adverse development reinsurance agreement with NICO, 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 paid 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. At NICO’s 80 percent share, NICO’s limit of liability under the contract is $ 20 billion. We account for this transaction as retroactive reinsurance. We paid total consideration, including interest, of $ 10.2 billion. The consideration was placed into a collateral trust account as security for NICO’s claim payment obligations, and Berkshire has provided a parental guarantee to secure the obligations of NICO under the agreement. Prior Year Development During the three-month period ended March 31, 2022, we recognized favorable prior year loss reserve development of $ 51 million excluding discount and amortization of deferred gain. The development in these periods was largely driven by favorable development on U.S. Workers Compensation, and Japan Personal Insurance, partially offset by unfavorable development on U.S Property and Special Risks. During the three-month period ended March 31, 2021, we recognized unfavorable prior year loss reserve development of $ 16 million excluding discount and amortization of deferred gain. The development in these periods was primarily driven by unfavorable development on prior-year catastrophes and the Blackboard insurance portfolio, offset by favorable development on Property, Specialty and U.S Workers Compensation. Discounting of Loss Reserves At March 31, 2022 and December 31, 2021, the loss reserves reflect a net loss reserve discount of $ 935 million and $ 876 million, respectively, including tabular and non-tabular calculations based upon the following assumptions: The non-tabular workers’ compensation discount is calculated separately for companies domiciled in New York, Pennsylvania and Delaware, and follows the statutory regulations (prescribed or permitted) for each state. – For New York companies, the discount is based on a 5 percent interest rate and the companies’ own payout patterns. – The Pennsylvania and Delaware regulators approved use of a consistent benchmark discount rate and spread (U.S. Treasury rate plus a liquidity premium) to all of our workers’ compensation reserves in our Pennsylvania domiciled and Delaware domiciled companies, as well as our use of updated payout patterns specific to our primary and excess workers compensation portfolios. In 2020, the regulators also approved that the discount rate will be updated on an annual basis. The tabular workers’ compensation discount is calculated based on the mortality rate used in the 2007 U.S. Life table and interest rates prescribed or permitted by each state (i.e. New York is based on 5 percent interest rate and Pennsylvania and Delaware are based on U.S. Treasury rate plus a liquidity premium). In the case that applying this tabular discount factor to our nominal reserves produces a tabular discount that is greater than the indemnity portion of our case reserves, the tabular discount is capped at our estimate of the indemnity portion of our cases reserves ( 45 percent). The discount for asbestos reserves has been fully accreted . At March 31, 2022 and December 31, 2021, the discount consists of $ 279 million and $ 260 million of tabular discount, respectively, and $ 656 million and $ 616 million of non-tabular discount for workers’ compensation, respectively. During the three-month periods ended March 31, 2022 and 2021, the benefit / (charge) from changes in discount of $ 20 million and $ 32 million, respectively, were recorded as part of the policyholder benefits and losses incurred in the Condensed Consolidated Statements of Income (Loss). The following table presents the components of the loss reserve discount discussed above: (in millions) March 31, 2022 December 31, 2021 U.S. workers' compensation $ 1,849 $ 1,829 Retroactive reinsurance ( 914) ( 953) Total reserve discount (a)(b) $ 935 $ 876 (a) Excludes $ 118 million and $ 116 million of discount related to certain long-tail liabilities in the UK at March 31, 2022 and December 31, 2021, respectively. (b) Includes gross discount of $ 493 million and $ 500 million, which was 100 percent ceded to Fortitude Re at March 31, 2022 and December 31, 2021, respectively. The following table presents the net loss reserve discount benefit (charge): Three Months Ended March 31, (in millions) 2022 2021 Current accident year 24 $ 14 Accretion and other adjustments to prior year discount ( 4) 18 Net reserve discount benefit (charge) 20 32 Change in discount on loss reserves ceded under retroactive reinsurance 39 39 Net change in total reserve discount * 59 $ 71 * Excludes $ 2 million and $ 7 million discount related to certain long-tail liabilities in the UK for the three-month periods ended March 31, 2022 and 2021, respectively. Amortization of Deferred Gain on Retroactive Reinsurance Amortization of the deferred gain on retroactive reinsurance includes $ 38 million and $ 55 million related to the adverse development reinsurance cover with NICO for the three-month periods ended March 31, 2022 and 2021, respectively. Amounts recognized reflect the amortization of the initial deferred gain at inception, as amended for subsequent changes in the deferred gain due to changes in subject reserves. |
CONTINGENCIES, COMMITMENTS AND
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 3 Months Ended |
Mar. 31, 2022 | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | |
CONTINGENCIES, COMMITMENTS AND GUARANTEES | 11. 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. On February 7, 2022, Plaintiff filed motions for summary judgment and class certification; AGL has opposed both motions. In addition, on February 7, 2022, AGL filed a motion for partial summary judgment, which Plaintiff has opposed. The District Court heard arguments on these motions on April 11, 2022. Proceedings are ongoing in other California cases that raise similar industry-wide issues. We have accrued our current estimate of probable loss with respect to this litigation. 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 $ 7.1 billion and $ 7.3 billion at March 31, 2022 and December 31, 2021, respectively. 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 March 31, 2022 was $ 70 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. 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 Condensed Consolidated Balance Sheets. Other For additional information on commitments and guarantees associated with VIEs, see Note 8. For additional information on derivatives, see Note 9. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
EQUITY | |
EQUITY | 12. 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. 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 three months ended March 31, 2022 and 2021: Dividends Paid Declaration Date Record Date Payment Date Per Preferred Share Per Depositary Share February 16, 2022 February 28, 2022 March 15, 2022 $ 365.625 $ 0.365625 February 16, 2021 February 26, 2021 March 15, 2021 $ 365.625 $ 0.365625 Common Stock The following table presents a rollforward of outstanding shares: Three Months Ended March 31, 2022 Common Treasury Common Stock Stock Issued Stock Outstanding Shares, beginning of year 1,906,671,492 ( 1,087,984,129) 818,687,363 Shares issued - 4,910,231 4,910,231 Shares repurchased - ( 23,373,504) ( 23,373,504) Shares, end of period 1,906,671,492 ( 1,106,447,402) 800,224,090 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 three months ended March 31, 2022 and 2021: Dividends Paid Declaration Date Record Date Payment Date Per Common Share February 16, 2022 March 17, 2022 March 31, 2022 $ 0.32 February 16, 2021 March 16, 2021 March 30, 2021 $ 0.32 For a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries see Note 18 to the Consolidated Financial Statements in the 2021 Annual Report . Repurchase of AIG Common Stock The following table presents repurchases of AIG Common Stock: Three Months Ended March 31, (in millions) 2022 2021 Aggregate repurchases of common stock * $ 1,403 $ 362 Total number of common shares repurchased 23 8 * For the three months ended March 31, 2021, 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. 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. 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): Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total Balance, December 31, 2021, net of tax $ ( 57) $ 10,094 $ ( 2,453) $ ( 903) $ 6 $ 6,687 Change in unrealized depreciation of investments ( 57) ( 20,110) - - - ( 20,167) Change in deferred policy acquisition costs adjustment and other - 2,815 - - - 2,815 Change in future policy benefits - 1,183 - - - 1,183 Change in foreign currency translation adjustments - - ( 1) - - ( 1) Change in net actuarial loss - - - 11 - 11 Change in prior service cost - - - 1 - 1 Change in deferred tax asset (liability) 12 2,505 ( 4) ( 3) - 2,510 Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - - - Total other comprehensive income (loss) ( 45) ( 13,607) ( 5) 9 - ( 13,648) Noncontrolling interests ( 5) ( 1,076) 20 - - ( 1,061) Balance, March 31, 2022, net of tax $ ( 97) $ ( 2,437) $ ( 2,478) $ ( 894) $ 6 $ ( 5,900) Balance, December 31, 2020, net of tax $ ( 95) $ 17,093 $ ( 2,267) $ ( 1,228) $ 8 $ 13,511 Change in unrealized appreciation (depreciation) of investments 41 ( 11,690) - - - ( 11,649) Change in deferred policy acquisition costs adjustment and other ( 2) 1,393 - - - 1,391 Change in future policy benefits - 1,145 - - - 1,145 Change in foreign currency translation adjustments - - 170 - - 170 Change in net actuarial gain - - - ( 1) - ( 1) Change in prior service cost - - - 2 - 2 Change in deferred tax asset (liability) ( 6) 1,953 ( 45) ( 4) - 1,898 Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - ( 1) ( 1) Total other comprehensive income (loss) 33 ( 7,199) 125 ( 3) ( 1) ( 7,045) Noncontrolling interests - - - - - - Balance, March 31, 2021, net of tax $ ( 62) $ 9,894 $ ( 2,142) $ ( 1,231) $ 7 $ 6,466 The following table presents the other comprehensive income (loss) reclassification adjustments for the three-month periods ended March 31, 2022 and 2021, respectively: Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total March 31, 2022 Unrealized change arising during period $ ( 57) $ ( 16,251) $ ( 1) $ 4 $ - $ ( 16,305) Less: Reclassification adjustments included in net income - ( 139) - ( 8) - ( 147) Total other comprehensive income (loss), before income tax expense (benefit) ( 57) ( 16,112) ( 1) 12 - ( 16,158) Less: Income tax expense (benefit) ( 12) ( 2,505) 4 3 - ( 2,510) Total other comprehensive income (loss), net of income tax expense (benefit) $ ( 45) $ ( 13,607) $ ( 5) $ 9 $ - $ ( 13,648) Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total March 31, 2021 Unrealized change arising during period $ 37 $ ( 8,761) $ 170 $ ( 11) $ ( 1) $ ( 8,566) Less: Reclassification adjustments included in net income ( 2) 391 - ( 12) - 377 Total other comprehensive income (loss), before income tax expense (benefit) 39 ( 9,152) 170 1 ( 1) ( 8,943) Less: Income tax expense (benefit) 6 ( 1,953) 45 4 - ( 1,898) Total other comprehensive income (loss), net of income tax expense (benefit) $ 33 $ ( 7,199) $ 125 $ ( 3) $ ( 1) $ ( 7,045) The following table presents the effect of the reclassification of significant items out of AOCI on the respective line items in the Condensed Consolidated Statements of Income (Loss): Amount Reclassified from AOCI Affected Line Item in the Three Months Ended March 31, Condensed Consolidated (in millions) 2022 2021 Statements of Income (Loss) Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken Investments $ - $ ( 2) Net realized gains (losses) Total - ( 2) Unrealized appreciation (depreciation) of all other investments Investments ( 139) 391 Net realized gains (losses) Total ( 139) 391 Change in retirement plan liabilities adjustment Prior-service credit ( 1) ( 1) * Actuarial losses ( 7) ( 11) * Total ( 8) ( 12) Total reclassifications for the period $ ( 147) $ 377 * These AOCI components are included in the computation of net periodic pension cost. For additional information see Note 14. |
EARNINGS PER COMMON SHARE (EPS)
EARNINGS PER COMMON SHARE (EPS) | 3 Months Ended |
Mar. 31, 2022 | |
EARNINGS PER COMMON SHARE (EPS) | |
EARNINGS PER COMMON SHARE (EPS) | 13. 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: Three Months Ended March 31, (dollars in millions, except per common share data) 2022 2021 Numerator for EPS: Income from continuing operations $ 4,656 $ 3,930 Less: Net income from continuing operations attributable to noncontrolling interests 396 54 Less: Preferred stock dividends 7 7 Income attributable to AIG common shareholders from continuing operations 4,253 3,869 Income from discontinued operations, net of income tax expense - - Net income attributable to AIG common shareholders 4,253 3,869 Denominator for EPS: Weighted average common shares outstanding - basic 816,314,273 868,105,069 Dilutive common shares 9,698,337 8,164,855 Weighted average common shares outstanding - diluted (a) 826,012,610 876,269,924 Income per common share attributable to AIG common shareholders: Basic: Income from continuing operations $ 5.21 $ 4.45 Income from discontinued operations $ - $ - Income attributable to AIG common shareholders $ 5.21 $ 4.45 Diluted: Income from continuing operations $ 5.15 $ 4.41 Income from discontinued operations $ - $ - Income attributable to AIG common shareholders $ 5.15 $ 4.41 (a) 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 Corebridge for AIG common shares. The number of common shares excluded from diluted shares outstanding was 39.9 million and 9.2 million for the three-month periods ended March 31, 2022 and 2021, 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 Corebridge for AIG common shares, see Note 1. For information regarding our repurchases of AIG Common Stock, see Note 16. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 3 Months Ended |
Mar. 31, 2022 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 14. Employee Benefits We sponsor various defined benefit plans for eligible employees and retirees in the U.S. and certain non-U.S. countries. The following table presents the components of net periodic benefit cost (credit) with respect to pension benefits: Pension U.S. Non-U.S. (in millions) Plans Plans Total Three Months Ended March 31, 2022 Components of net periodic benefit cost: Service cost $ 1 $ 5 $ 6 Interest cost 27 3 30 Expected return on assets ( 53) ( 5) ( 58) Amortization of prior service cost - 1 1 Amortization of net loss 7 1 8 Net periodic benefit cost (credit) $ ( 18) $ 5 $ ( 13) Three Months Ended March 31, 2021 Components of net periodic benefit cost: Service cost $ 1 $ 5 $ 6 Interest cost 22 3 25 Expected return on assets ( 61) ( 6) ( 67) Amortization of prior service cost - 1 1 Amortization of net loss 9 2 11 Net periodic benefit cost (credit) $ ( 29) $ 5 $ ( 24) The service cost for our U.S. defined benefit plans only reflects administrative fees as the plans are frozen and no longer accrue benefits. We recognized net expense of $ 1 million and $ 2 million for our U.S. and non-U.S. postretirement benefit plans for the three-month periods ended March 31, 2022 and 2021, respectively. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
INCOME TAXES | |
INCOME TAXES | 15. 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. Interim Tax Calculation Method We use the estimated annual effective tax rate method in computing our interim tax provision. Certain items, including those deemed to be unusual, infrequent or that cannot be reliably estimated, are excluded from the estimated annual effective tax rate. In these cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax rate, primarily certain changes in uncertain tax positions and realizability of deferred tax assets, and are recorded in the period in which the change occurs. While certain impacts of the Tax Act are included in our annual effective tax rate, we continue to refine our calculations as additional information becomes available, which may result in changes to the estimated annual effective tax rate. Interim Tax Expense (Benefit) For the three-month period ended March 31, 2022, the effective tax rate on income from continuing operations was 20.2 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax benefits associated with tax exempt income, reclassifications from AOCI to income from continuing operations related to the disposal of available for sale securities, excess tax benefits related to share based compensation payments recorded through the income statement, tax adjustments related to prior year returns and adjustments to interest related to items challenged by the IRS during the audit of AIG’s 2006 and prior tax years. These tax benefits were partially offset by tax charges associated with the effect of foreign operations, state and local income taxes, and non-deductible transfer pricing charges. The effect of foreign operations is primarily related to income of our foreign operations taxed at statutory tax rates higher than 21 percent, other foreign taxes, and foreign income subject to U.S. taxation. For the three-month period ended March 31, 2021, the effective tax rate on loss from continuing operations was 16.9 percent. The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax benefits associated with the release of reserves for uncertain tax positions, penalties and interest related to the recent completion of audit activity by the IRS, tax exempt income, and reclassifications from AOCI to income from continuing operations related to the disposal of available for sale securities. These tax benefits were partially offset by tax charges associated with the establishment of U.S. federal valuation allowance related to certain tax attribute carryforwards, the effect of foreign operations, excess tax charges related to share based compensation payments recorded through the income statement, state and local income taxes, and non-deductible transfer pricing charges. The effect of foreign operations is primarily related to income of our foreign operations taxed at statutory tax rates higher than 21 percent, other foreign taxes, and foreign income subject to U.S. taxation. For the three-month period ended March 31, 2022, 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. Deferred taxes, if necessary, have been provided on earnings of non-U.S. affiliates whose earnings are not indefinitely reinvested. 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 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. To the extent that the valuation allowance is attributed to changes in forecast of current year taxable income, the impact is included in our estimated annualized effective tax rate. A valuation allowance related to changes in forecasts of income in future periods as well as other items not related to the current year is recorded discretely. As of March 31, 2022, 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. No change in valuation allowance was recorded for the three-month period ended March 31, 2022. 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. 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 three-month period ended March 31, 2022, recent changes in market conditions, including rising interest rates, 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 assets related to net unrealized tax capital losses. The deferred tax asset relates to the unrealized losses for which the carryforward period has not yet begun, and as such, when assessing its recoverability, we consider our ability and intent to hold the underlying securities to recovery. As of March 31, 2022, based on all available evidence, we concluded that a valuation allowance should be established on a portion of the deferred tax asset related to unrealized losses that are not more-likely-than-not to be realized. For the three months ended March 31, 2022, we established $ 770 million of valuation allowance associated with the unrealized tax losses in the U.S. Life Insurance Companies’ available for sale securities portfolio and $ 170 million of valuation allowance associated with the unrealized tax losses in the non-life insurance companies’ available for sale securities portfolio. All of the valuation allowance establishment was allocated to other comprehensive income. For the three-month period ended March 31, 2022, we recognized a net $ 6 million decrease in deferred tax asset valuation allowance associated with certain foreign and state jurisdictions, primarily attributable to current year activity. 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. 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. In March 2022, interest amounts due on the settlement of items challenged by the IRS during the audit of AIG’s 2006 and prior years were agreed to between AIG and the IRS. Accounting for Uncertainty in Income Taxes At both March 31, 2022 and December 31, 2021, our unrecognized tax benefits, excluding interest and penalties, were $ 1.2 billion. At both March 31, 2022 and December 31, 2021, 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. Accordingly, at both March 31, 2022 and December 31, 2021, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $ 1.1 billion. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At both March 31, 2022 and December 31, 2021, we had accrued liabilities of $ 69 million for the payment of interest (net of the federal benefit) and penalties. For the three-month period ended March 31, 2021, we accrued benefit of $ 183 million for the payment of interest and penalties. There was no interest activity related to unrecognized tax benefits for the three-month period ended March 31, 2022. The activity for the three-month period ended March 31, 2021 primarily related to the completion of audit activity by the IRS. We believe it is reasonably possible that our unrecognized tax benefits could decrease within the next 12 months by as much as $ 11 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 16. Subsequent Events Dividends Declared On May 3, 2022, our Board of Directors declared a cash dividend on AIG Common Stock of $ 0.32 per share, payable on June 30, 2022 to shareholders of record on June 16, 2022. On May 3, 2022, our Board of Directors declared a cash dividend on AIG’s Series A Preferred Stock of $ 365.625 per share, payable on June 15, 2022 to holders of record on May 31, 2022. REPURCHASE OF COMMON STOCK Pursuant to an Exchange Act Rule 10b5-1 repurchase plan that expires on May 20, 2022 (the Current 10b5-1 Plan), from April 1, 2022 to April 29, 2022, we repurchased approximately 10 million shares of AIG Common Stock for an aggregate purchase price of approximately $ 598 million. On May 3, 2022, the Board of Directors authorized the repurchase of $ 6.5 billion of AIG Common Stock (inclusive of the approximately $ 1.5 billion of expected remaining authorization upon expiration of the Current 10b5-1 Plan as of May 20, 2022). DEBT CASH TENDER OFFERS In April 2022, AIG repurchased, through cash tender offers, approximately $ 6.8 billion aggregate principal amount of certain notes and debentures issued or guaranteed by AIG, and announced that it will redeem € 750 million aggregate principal amount of its 1.500% Notes due 2023 on May 10, 2022. COREBRIDGE On February 25, 2022, Corebridge entered into an 18-Month Delayed Draw Term Loan Agreement (the 18-Month DDTL Facility) among Corebridge, as borrower, the lenders party thereto and the administrative agent thereto, and a 3-Year Delayed Draw Term Loan Agreement (the 3-Year DDTL Facility) among Corebridge, as borrower, the lenders party thereto and the administrative agent thereto. The 18-Month DDTL Facility and 3-Year DDTL Facility provided Corebridge with committed delayed draw term loan facilities in the aggregate principal amount of $ 6 billion and $ 3 billion, respectively. On April 5, 2022, Corebridge issued and sold senior unsecured notes in the aggregate principal amount of $ 6.5 billion consisting of: $ 1,000,000,000 aggregate principal amount of its 3.500% Senior Notes due 2025, $ 1,250,000,000 aggregate principal amount of its 3.650% Senior Notes due 2027, $ 1,000,000,000 aggregate principal amount of its 3.850% Senior Notes due 2029, $ 1,500,000,000 aggregate principal amount of its 3.900% Senior Notes due 2032, $ 500,000,000 aggregate principal amount of its 4.350% Senior Notes due 2042 and $ 1,250,000,000 aggregate principal amount of its 4.400% Senior Notes due 2052. Corebridge used the net proceeds of the issuance of the notes, in the amount of approximately $ 6.5 billion, to repay a portion of the $ 8.3 billion promissory note previously issued by Corebridge to AIG. On April 6, 2022, in connection with the issuance of the senior unsecured notes of Corebridge, (i) the commitments under the 18-Month DDTL Facility were terminated in full and (ii) the commitments under the 3-Year DDTL Facility were reduced from $ 3.0 billion to $ 2.5 billion. The ability to borrow under the 3-Year DDTL Facility is subject to, among other conditions, Corebridge’s confirmation to the administrative agent that an initial public offering of Corebridge is expected to be consummated within five business days following such borrowing. Commitments under the 3-Year DDTL Facility will remain available for borrowing until December 30, 2022, subject to the terms and conditions thereof. As of May 3, 2022, a total of $ 2.5 billion remained available under the 3-Year DDTL Facility. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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) | 3 Months Ended |
Mar. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Investments | Purchased Credit Deteriorated (PCD) 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. |
Reinsurance | 7. Reinsurance Fortitude RE Fortitude Re is the reinsurer of the majority of AIG’s run-off operations. The reinsurance transactions are 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. For additional information on Fortitude Re see Note 7 to the Consolidated Financial Statements in the 2021 Annual Report. 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: March 31, 2022 December 31, 2021 Carrying Fair Carrying Fair (in millions) Value Value Value Value Corresponding Accounting Policy Fixed maturity securities - available for sale (a) $ 26,513 $ 26,513 $ 31,815 $ 31,815 Fair value through other comprehensive income (loss) Fixed maturity securities - fair value option 2,711 2,711 1,983 1,983 Fair value through net investment income Commercial mortgage loans 3,889 3,940 3,637 3,859 Amortized cost Real estate investments 178 414 201 395 Amortized cost Private equity funds / hedge funds 1,724 1,724 1,606 1,606 Fair value through net investment income Policy loans 373 373 380 380 Amortized cost Short-term investments 81 81 50 50 Fair value through net investment income Funds withheld investment assets 35,469 35,756 39,672 40,088 Derivative assets, net (b) 72 72 81 81 Fair value through net realized gains (losses) Other (c) 653 653 602 602 Amortized cost Total $ 36,194 $ 36,481 $ 40,355 $ 40,771 (a) The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $( 3.3) billion ($( 2.6) billion after-tax) and $( 2.9) billion ($( 2.3) billion after-tax), respectively for the three months ended March 31, 2022 and 2021. (b) The derivative assets and liabilities have been presented net of cash collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 349 million and $ 16 million, respectively, as of March 31, 2022. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 389 million and $ 10 million, respectively, as of December 31, 2021. These derivative assets and liabilities are fully collateralized either by cash or securities. (c) Primarily comprised of Cash and Accrued investment income. The impact of the funds withheld arrangements with Fortitude Re was as follows: Three Months Ended March 31, (in millions) 2022 2021 Net underwriting income $ - $ - Net investment income - Fortitude Re funds withheld assets 291 486 Net realized gains (losses) on Fortitude Re funds withheld assets: Net realized gains (losses) - Fortitude Re funds withheld assets ( 140) 173 Net realized gains - Fortitude Re embedded derivatives 3,318 2,382 Net realized gains on Fortitude Re funds withheld assets 3,178 2,555 Income from continuing operations before income tax expense 3,469 3,041 Income tax expense (a) 728 639 Net income 2,741 2,402 Change in unrealized depreciation of all other investments (a) ( 2,638) ( 2,340) Comprehensive income $ 103 $ 62 (a) The income tax expense (benefit) and the tax impact in AOCI was computed using AIG’s U.S. statutory tax rate of 21 percent. 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 March 31, 2022 were $ 77.7 billion. As of that date, utilizing AIG’s ORRs, (i) approximately 93 percent of the reinsurance recoverables were investment grade, of which 53 percent related to General Insurance and 40 percent related to Life and Retirement; (ii) approximately 6 percent of the reinsurance recoverables were non-investment grade, the majority of which related to General Insurance; (iii) less than one one 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 noninvestment grade, the majority of which related to General Insurance; (iii) less than one one As of both March 31, 2022 and 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. |
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. 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. 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. 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 or reserve releases. |
Accounting Standards Adopted During 2021 and Future Application of Accounting Standards | Accounting Standards Adopted 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 accumulated other comprehensive income (loss) (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 Reinsurance Company Ltd. (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 modified coinsurance (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. Troubled Debt Restructuring and Vintage Disclosures In March 2022, the FASB issued an accounting standard update that eliminates the accounting guidance for troubled debt restructurings for creditors and amends the guidance on “vintage disclosures” to require disclosure of current-period gross write-offs by year of origination. The standard also updates the requirements for accounting for credit losses by adding enhanced disclosures for creditors related to loan refinancings and restructurings for borrowers experiencing financial difficulty. Because the Company has already adopted the current expected credit loss (CECL) model, the amendments in this standard are effective for fiscal years beginning after December 15, 2022, including interim periods within those years. We are assessing the impact of this standard. |
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 March 31, 2022 were $ 77.7 billion. As of that date, utilizing AIG’s ORRs, (i) approximately 93 percent of the reinsurance recoverables were investment grade, of which 53 percent related to General Insurance and 40 percent related to Life and Retirement; (ii) approximately 6 percent of the reinsurance recoverables were non-investment grade, the majority of which related to General Insurance; (iii) less than one one 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 noninvestment grade, the majority of which related to General Insurance; (iii) less than one one As of both March 31, 2022 and 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: Three Months Ended March 31, 2022 2021 General Life and General Life and (in millions) Insurance Retirement Total Insurance Retirement Total Balance, beginning of year $ 281 $ 101 $ 382 $ 292 $ 83 $ 375 Addition to (release of) allowance for expected credit losses and disputes, net 5 4 9 1 4 5 Write-offs charged against the allowance for credit losses and disputes ( 2) - ( 2) ( 4) - ( 4) Other changes 2 - 2 2 - 2 Balance, end of period $ 286 $ 105 $ 391 $ 291 $ 87 $ 378 There were no material recoveries of credit losses previously written off for the three-month periods ended March 31, 2022 and 2021. 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) | 3 Months Ended |
Mar. 31, 2022 | |
SEGMENT INFORMATION | |
Schedule of continuing operations by operating segment including reconciling items | Three Months Ended March 31, 2022 2021 Adjusted Adjusted Adjusted Pre-tax Adjusted Pre-tax (in millions) Revenues Income (Loss) Revenues Income (Loss) General Insurance North America $ 2,789 $ 256 (a) $ 2,388 $ ( 202) (a) International 3,467 190 (a) 3,478 275 (a) Net investment income 765 765 772 772 Total General Insurance 7,021 1,211 6,638 845 Life and Retirement Individual Retirement 1,385 384 1,477 532 Group Retirement 744 225 806 307 Life Insurance 1,287 ( 9) 1,333 ( 40) Institutional Markets 549 124 364 142 Total Life and Retirement 3,965 724 3,980 941 Other Operations Other Operations before consolidation and eliminations 294 ( 288) 324 ( 354) Consolidation and eliminations ( 136) ( 133) ( 180) ( 176) Total Other Operations 158 ( 421) 144 ( 530) Total 11,144 1,514 10,762 1,256 Reconciling items: Changes in fair value of securities used to hedge guaranteed living benefits 14 13 18 22 Changes in benefit reserves and DAC, VOBA and DSI related to net realized gains (losses) - ( 273) - ( 203) Changes in the fair value of equity securities ( 27) ( 27) 22 22 Other income (expense) - net ( 7) - ( 6) - Gain on extinguishment of debt - - - 8 Net investment income on Fortitude Re funds withheld assets 291 291 486 486 Net realized gains (losses) on Fortitude Re funds withheld assets ( 140) ( 140) 173 173 Net realized gains on Fortitude Re funds withheld embedded derivative 3,318 3,318 2,382 2,382 Net realized gains (b) 1,181 1,188 617 627 Net gain on divestitures - 40 - 7 Non-operating litigation reserves and settlements 34 34 - - Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements - - - 19 Net loss reserve discount benefit - 20 - 32 Integration and transaction costs associated with acquiring or divesting businesses - ( 46) - ( 9) Restructuring and other costs - ( 93) - ( 74) Non-recurring costs related to regulatory or accounting changes - ( 4) - ( 20) Revenues and pre-tax income $ 15,808 $ 5,835 $ 14,454 $ 4,728 (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). |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |
Assets and liabilities measured at fair value on a recurring basis | March 31, 2022 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 $ 8 $ 7,859 $ - $ - $ - $ 7,867 Obligations of states, municipalities and political subdivisions - 12,426 1,087 - - 13,513 Non-U.S. governments 112 14,862 8 - - 14,982 Corporate debt - 158,884 2,744 - - 161,628 RMBS - 15,610 8,925 - - 24,535 CMBS - 14,236 864 - - 15,100 CDO/ABS - 7,818 11,776 - - 19,594 Total bonds available for sale 120 231,695 25,404 - - 257,219 Other bond securities: U.S. government and government sponsored entities - 1,689 - - - 1,689 Obligations of states, municipalities and political subdivisions - 98 - - - 98 Non-U.S. governments - 85 - - - 85 Corporate debt - 1,081 260 - - 1,341 RMBS - 113 199 - - 312 CMBS - 284 33 - - 317 CDO/ABS - 272 2,468 - - 2,740 Total other bond securities - 3,622 2,960 - - 6,582 Equity securities 639 50 6 - - 695 Other invested assets (b) - 145 1,935 - - 2,080 Derivative assets (c) Interest rate contracts 1 3,998 4 - - 4,003 Foreign exchange contracts - 1,404 - - - 1,404 Equity contracts 31 182 190 - - 403 Commodity contracts - 3 - - - 3 Credit contracts - - 1 - - 1 Other contracts - - 14 - - 14 Counterparty netting and cash collateral - - - ( 3,295) ( 1,877) ( 5,172) Total derivative assets 32 5,587 209 ( 3,295) ( 1,877) 656 Short-term investments 2,140 1,290 - - - 3,430 Other assets - - 108 - - 108 Separate account assets 97,083 3,767 - - - 100,850 Total $ 100,014 $ 246,156 $ 30,622 $ ( 3,295) $ ( 1,877) $ 371,620 Liabilities: Policyholder contract deposits $ - $ 50 $ 8,030 $ - $ - $ 8,080 Derivative liabilities (c) Interest rate contracts 2 4,402 - - - 4,404 Foreign exchange contracts - 665 - - - 665 Equity contracts 7 36 12 - - 55 Credit contracts - 13 32 - - 45 Counterparty netting and cash collateral - - - ( 3,295) ( 1,478) ( 4,773) Total derivative liabilities 9 5,116 44 ( 3,295) ( 1,478) 396 Fortitude Re funds withheld payable - - 2,206 - - 2,206 Long-term debt - 1,782 - - - 1,782 Total $ 9 $ 6,948 $ 10,280 $ ( 3,295) $ ( 1,478) $ 12,464 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 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 Long-term debt - 1,871 - - - 1,871 Total $ 2 $ 6,340 $ 15,641 $ ( 2,779) $ ( 1,089) $ 18,115 (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 $ 9.5 billion and $ 8.4 billion as of March 31, 2022 and December 31, 2021, respectively. (c) Presented as part of Other assets and Other liabilities on the Condensed 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 Period in Income Income (Loss) Net In Out Other of Period at End of Period at End of Period Three Months Ended March 31, 2022 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 1,431 $ 2 $ ( 285) $ ( 61) $ - $ - $ - $ 1,087 $ - $ ( 273) Non-U.S. governments 7 - - - 1 - - 8 - - Corporate debt 2,641 ( 11) ( 73) 177 130 ( 120) - 2,744 - ( 69) RMBS 10,378 130 ( 553) ( 608) - ( 422) - 8,925 - ( 544) CMBS 1,190 8 ( 67) 32 - ( 299) - 864 - ( 64) CDO/ABS 11,215 16 ( 501) 545 1,115 ( 614) - 11,776 - ( 501) Total bonds available for sale 26,862 145 ( 1,479) 85 1,246 ( 1,455) - 25,404 - ( 1,451) Other bond securities: Corporate debt 134 - - 77 61 ( 12) - 260 - - RMBS 196 ( 5) ( 1) 9 - - - 199 ( 8) - CMBS 35 ( 2) - - - - - 33 ( 2) - CDO/ABS 2,332 ( 114) - 195 57 ( 2) - 2,468 ( 161) - Total other bond securities 2,697 ( 121) ( 1) 281 118 ( 14) - 2,960 ( 171) - Equity securities 6 - ( 1) 1 - - - 6 - - Other invested assets 1,948 112 ( 4) ( 15) 47 ( 153) - 1,935 121 - Other assets 114 - - ( 6) - - - 108 - - Total $ 31,627 $ 136 $ ( 1,485) $ 346 $ 1,411 $ ( 1,622) $ - $ 30,413 $ ( 50) $ ( 1,451) 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 Period in Income Income (Loss) Net In Out Other of Period at End of Period at End of Period Liabilities: Policyholder contract deposits $ 9,682 $ ( 1,797) $ - $ 145 $ - $ - $ - $ 8,030 $ 1,983 $ - Derivative liabilities, net: Interest rate contracts - ( 1) - ( 3) - - - ( 4) 1 - Foreign exchange contracts ( 1) - - 1 - - - - ( 1) - Equity contracts ( 444) 301 - ( 35) - - - ( 178) ( 241) - Credit contracts 30 1 - - - - - 31 ( 1) - Other contracts ( 13) ( 18) - 17 - - - ( 14) 18 - Total derivative liabilities, net (a) ( 428) 283 - ( 20) - - - ( 165) ( 224) - Fortitude Re funds withheld payable 5,922 ( 3,318) - ( 398) - - - 2,206 3,480 - Total $ 15,176 $ ( 4,832) $ - $ ( 273) $ - $ - $ - $ 10,071 $ 5,239 $ - 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 Period in Income Income (Loss) Net In Out Other of Period at End of Period at End of Period Three Months Ended March 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,105 $ 3 $ ( 159) $ ( 53) $ - $ - $ - $ 1,896 $ - $ ( 10) Non-U.S. governments 5 - - - 1 - - 6 - - Corporate debt 2,349 ( 1) ( 10) 177 187 ( 132) - 2,570 - ( 159) RMBS 11,694 167 64 ( 431) - ( 30) - 11,464 - ( 14) CMBS 922 9 ( 56) 173 56 - - 1,104 - ( 56) CDO/ABS 9,814 16 ( 14) ( 164) 454 ( 504) - 9,602 - 64 Total bonds available for sale 26,889 194 ( 175) ( 298) 698 ( 666) - 26,642 - ( 175) Other bond securities: RMBS 139 3 - ( 16) - - - 126 ( 98) - CMBS 47 ( 1) - ( 6) 6 - - 46 ( 2) - CDO/ABS 2,512 ( 11) - ( 155) - - - 2,346 2 - Total other bond securities 2,698 ( 9) - ( 177) 6 - - 2,518 ( 98) - Equity securities 51 11 3 ( 11) 75 ( 1) - 128 3 - Other invested assets 1,827 142 ( 6) ( 66) - - - 1,897 123 - Other assets 113 - - - - - - 113 - - Total $ 31,578 $ 338 $ ( 178) $ ( 552) $ 779 $ ( 667) $ - $ 31,298 $ 28 $ ( 175) 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 Period in Income Income (Loss) Net In Out Other of Period at End of Period at End of Period Liabilities: Policyholder contract deposits $ 9,798 $ ( 2,260) $ - $ 79 $ - $ - $ - $ 7,617 $ 2,570 $ - Derivative liabilities, net: Interest rate contracts - - - - - - - - - - Foreign exchange contracts ( 2) 1 - 1 - - - - ( 1) - Equity contracts ( 151) ( 26) - ( 85) - 40 - ( 222) ( 118) - Credit contracts 42 5 - ( 3) - - - 44 ( 3) - Other contracts ( 8) ( 17) - 16 - - - ( 9) 16 - Total derivative liabilities, net (a) ( 119) ( 37) - ( 71) - 40 - ( 187) ( 106) - Fortitude Re funds withheld payable 6,042 ( 2,382) - ( 173) - - - 3,487 2,955 - Total $ 15,721 $ ( 4,679) $ - $ ( 165) $ - $ 40 $ - $ 10,917 $ 5,419 $ - (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 Period in Income Income (Loss) Net In Out Other of Period at End of Period at End of Period Three Months Ended March 31, 2022 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 1,431 $ 2 $ ( 285) $ ( 61) $ - $ - $ - $ 1,087 $ - $ ( 273) Non-U.S. governments 7 - - - 1 - - 8 - - Corporate debt 2,641 ( 11) ( 73) 177 130 ( 120) - 2,744 - ( 69) RMBS 10,378 130 ( 553) ( 608) - ( 422) - 8,925 - ( 544) CMBS 1,190 8 ( 67) 32 - ( 299) - 864 - ( 64) CDO/ABS 11,215 16 ( 501) 545 1,115 ( 614) - 11,776 - ( 501) Total bonds available for sale 26,862 145 ( 1,479) 85 1,246 ( 1,455) - 25,404 - ( 1,451) Other bond securities: Corporate debt 134 - - 77 61 ( 12) - 260 - - RMBS 196 ( 5) ( 1) 9 - - - 199 ( 8) - CMBS 35 ( 2) - - - - - 33 ( 2) - CDO/ABS 2,332 ( 114) - 195 57 ( 2) - 2,468 ( 161) - Total other bond securities 2,697 ( 121) ( 1) 281 118 ( 14) - 2,960 ( 171) - Equity securities 6 - ( 1) 1 - - - 6 - - Other invested assets 1,948 112 ( 4) ( 15) 47 ( 153) - 1,935 121 - Other assets 114 - - ( 6) - - - 108 - - Total $ 31,627 $ 136 $ ( 1,485) $ 346 $ 1,411 $ ( 1,622) $ - $ 30,413 $ ( 50) $ ( 1,451) 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 Period in Income Income (Loss) Net In Out Other of Period at End of Period at End of Period Liabilities: Policyholder contract deposits $ 9,682 $ ( 1,797) $ - $ 145 $ - $ - $ - $ 8,030 $ 1,983 $ - Derivative liabilities, net: Interest rate contracts - ( 1) - ( 3) - - - ( 4) 1 - Foreign exchange contracts ( 1) - - 1 - - - - ( 1) - Equity contracts ( 444) 301 - ( 35) - - - ( 178) ( 241) - Credit contracts 30 1 - - - - - 31 ( 1) - Other contracts ( 13) ( 18) - 17 - - - ( 14) 18 - Total derivative liabilities, net (a) ( 428) 283 - ( 20) - - - ( 165) ( 224) - Fortitude Re funds withheld payable 5,922 ( 3,318) - ( 398) - - - 2,206 3,480 - Total $ 15,176 $ ( 4,832) $ - $ ( 273) $ - $ - $ - $ 10,071 $ 5,239 $ - 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 Period in Income Income (Loss) Net In Out Other of Period at End of Period at End of Period Three Months Ended March 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 2,105 $ 3 $ ( 159) $ ( 53) $ - $ - $ - $ 1,896 $ - $ ( 10) Non-U.S. governments 5 - - - 1 - - 6 - - Corporate debt 2,349 ( 1) ( 10) 177 187 ( 132) - 2,570 - ( 159) RMBS 11,694 167 64 ( 431) - ( 30) - 11,464 - ( 14) CMBS 922 9 ( 56) 173 56 - - 1,104 - ( 56) CDO/ABS 9,814 16 ( 14) ( 164) 454 ( 504) - 9,602 - 64 Total bonds available for sale 26,889 194 ( 175) ( 298) 698 ( 666) - 26,642 - ( 175) Other bond securities: RMBS 139 3 - ( 16) - - - 126 ( 98) - CMBS 47 ( 1) - ( 6) 6 - - 46 ( 2) - CDO/ABS 2,512 ( 11) - ( 155) - - - 2,346 2 - Total other bond securities 2,698 ( 9) - ( 177) 6 - - 2,518 ( 98) - Equity securities 51 11 3 ( 11) 75 ( 1) - 128 3 - Other invested assets 1,827 142 ( 6) ( 66) - - - 1,897 123 - Other assets 113 - - - - - - 113 - - Total $ 31,578 $ 338 $ ( 178) $ ( 552) $ 779 $ ( 667) $ - $ 31,298 $ 28 $ ( 175) 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 Period in Income Income (Loss) Net In Out Other of Period at End of Period at End of Period Liabilities: Policyholder contract deposits $ 9,798 $ ( 2,260) $ - $ 79 $ - $ - $ - $ 7,617 $ 2,570 $ - Derivative liabilities, net: Interest rate contracts - - - - - - - - - - Foreign exchange contracts ( 2) 1 - 1 - - - - ( 1) - Equity contracts ( 151) ( 26) - ( 85) - 40 - ( 222) ( 118) - Credit contracts 42 5 - ( 3) - - - 44 ( 3) - Other contracts ( 8) ( 17) - 16 - - - ( 9) 16 - Total derivative liabilities, net (a) ( 119) ( 37) - ( 71) - 40 - ( 187) ( 106) - Fortitude Re funds withheld payable 6,042 ( 2,382) - ( 173) - - - 3,487 2,955 - Total $ 15,721 $ ( 4,679) $ - $ ( 165) $ - $ 40 $ - $ 10,917 $ 5,419 $ - (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 Three Months Ended March 31, 2022 Assets: Bonds available for sale $ 164 $ ( 19) $ - $ 145 Other bond securities ( 121) - - ( 121) Other invested assets 112 - - 112 Three Months Ended March 31, 2021 Assets: Bonds available for sale $ 185 $ 9 $ - $ 194 Other bond securities ( 9) - - ( 9) Equity securities 11 - - 11 Other invested assets 142 - - 142 Net Investment Net Realized Other (in millions) Income (Gains) Losses Income Total Three Months Ended March 31, 2022 Liabilities: Policyholder contract deposits * $ - $ ( 1,797) $ - $ ( 1,797) Derivative liabilities, net - 298 ( 15) 283 Fortitude Re funds withheld payable - ( 3,318) - ( 3,318) Three Months Ended March 31, 2021 Liabilities: Policyholder contract deposits * $ - $ ( 2,260) $ - $ ( 2,260) Derivative liabilities, net - ( 23) ( 14) ( 37) Fortitude Re funds withheld payable - ( 2,382) - ( 2,382) * Primarily embedded derivatives. |
Gross components of purchases, sales, issuances and settlements, net | Issuances Purchases, Sales, and Issuances and (in millions) Purchases Sales Settlements (a) Settlements, Net (a) Three Months Ended March 31, 2022 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 1 $ ( 60) $ ( 2) $ ( 61) Corporate debt 9 - 168 177 RMBS 109 - ( 717) ( 608) CMBS 70 - ( 38) 32 CDO/ABS 886 - ( 341) 545 Total bonds available for sale 1,075 ( 60) ( 930) 85 Other bond securities: Corporate debt 19 - 58 77 RMBS 17 - ( 8) 9 CDO/ABS 323 - ( 128) 195 Total other bond securities 359 - ( 78) 281 Equity securities - - 1 1 Other invested assets 258 - ( 273) ( 15) Other assets - - ( 6) ( 6) Total $ 1,692 $ ( 60) $ ( 1,286) $ 346 Liabilities: Policyholder contract deposits $ - $ 217 $ ( 72) $ 145 Derivative liabilities, net ( 85) 2 63 ( 20) Fortitude Re funds withheld payable - - ( 398) ( 398) Total $ ( 85) $ 219 $ ( 407) $ ( 273) Three Months Ended March 31, 2021 Assets: Bonds available for sale: Obligations of states, municipalities and political subdivisions $ 8 $ ( 20) $ ( 41) $ ( 53) Corporate debt 741 ( 1) ( 563) 177 RMBS 164 - ( 595) ( 431) CMBS 193 - ( 20) 173 CDO/ABS 376 ( 49) ( 491) ( 164) Total bonds available for sale 1,482 ( 70) ( 1,710) ( 298) Other bond securities: RMBS - - ( 16) ( 16) CMBS - ( 6) - ( 6) CDO/ABS - ( 39) ( 116) ( 155) Total other bond securities - ( 45) ( 132) ( 177) Equity securities - - ( 11) ( 11) Other invested assets 198 - ( 264) ( 66) Total $ 1,680 $ ( 115) $ ( 2,117) $ ( 552) Liabilities: Policyholder contract deposits $ - $ 191 $ ( 112) $ 79 Derivative liabilities, net ( 52) 1 ( 20) ( 71) Fortitude Re funds withheld payable - - ( 173) ( 173) Total $ ( 52) $ 192 $ ( 305) $ ( 165) (a) There were issuances during the three-month periods ended March 31, 2022 and 2021. |
Significant unobservable inputs used for recurring fair value measurements | Fair Value at March 31, Valuation Range (in millions) 2022 Technique Unobservable Input (b) (Weighted Average) (c) Assets: Obligations of states, municipalities and political subdivisions $ 1,057 Discounted cash flow Yield 3.70% - 4.49% ( 4.10%) Corporate debt 2,563 Discounted cash flow Yield 1.98% - 6.54% ( 4.26%) RMBS (a) 7,006 Discounted cash flow Constant prepayment rate 4.90% - 10.37% ( 7.63%) Loss severity 38.04% - 67.75% ( 52.90%) Constant default rate 1.23% - 3.47% ( 2.35%) Yield 3.54% - 5.34% ( 4.44%) CDO/ABS (a) 8,496 Discounted cash flow Yield 3.44% - 6.15% ( 4.79%) CMBS 626 Discounted cash flow Yield 3.17% - 5.62% ( 4.40%) Liabilities (d) Embedded derivatives within Policyholder contract deposits: Variable annuity guaranteed minimum withdrawal benefits (GMWB) 1,667 Discounted cash flow Equity volatility 5.85% - 46.25% 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) 0.17% - 1.72% Fixed Index annuities including certain GMWB 5,673 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) 0.17% - 1.72% Indexed life 690 Discounted cash flow Base lapse rate 0.00% - 37.97% Mortality rate 0.00% - 100.00% NPA (f) 0.17% - 1.72% 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: 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% Fixed 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% (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 non-performance risk adjustment (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 March 31, 2022 and December 31, 2021 was approximately $ 1.0 billion and $ 1.2 billion, respectively. The remaining guaranteed minimum riders on the fixed index annuities are valued under the accounting guidance for certain nontraditional long-duration contracts. |
Investments in certain entities carried at fair value using net asset value per share | March 31, 2022 December 31, 2021 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 $ 2,993 $ 1,979 $ 2,768 $ 1,798 Real assets Investments in real estate properties, agricultural and infrastructure assets, including power plants and other energy producing assets 1,515 613 904 487 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 266 211 252 201 Growth equity Funds that make investments in established companies for the purpose of growing their businesses 917 67 914 82 Mezzanine Funds that make investments in the junior debt and equity securities of leveraged companies 566 313 534 354 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 1,490 362 1,216 408 Total private equity funds 7,747 3,545 6,588 3,330 Hedge funds: Event-driven Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations 484 - 466 - Long-short Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk 345 - 432 - Macro Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions 474 - 516 - 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 401 - 416 - Total hedge funds 1,704 - 1,830 - Total $ 9,451 $ 3,545 $ 8,418 $ 3,330 |
Gains or losses related to the eligible instruments for which AIG elected the fair value option | Three Months Ended March 31, Gain (Loss) (in millions) 2022 2021 Assets: Other bond securities (a) $ ( 201) $ ( 99) Alternative investments (b) 398 417 Liabilities: Long-term debt (c) 103 71 Total gain $ 300 $ 389 (a) Includes certain securities supporting the funds withheld arrangements with Fortitude Re. For additional information regarding the gains and losses for Other bond securities, see Note 5. For additional information regarding the funds withheld arrangements with Fortitude Re, see Note 7. (b) Includes certain hedge funds, private equity funds and other investment partnerships. (c) Includes guaranteed investment agreements (GIAs), notes, bonds and mortgages payable. |
Difference between fair values and aggregate contractual principal amounts, fair value option | March 31, 2022 December 31, 2021 Outstanding Outstanding (in millions) Fair Value Principal Amount Difference Fair Value Principal Amount Difference Liabilities: Long-term debt * $ 1,782 $ 1,437 $ 345 $ 1,871 $ 1,405 $ 466 * 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 Three Months Ended March 31, (in millions) Level 1 Level 2 Level 3 Total 2022 2021 March 31, 2022 Other investments $ - $ - $ - $ - $ - $ 6 Total $ - $ - $ - $ - $ - $ 6 December 31, 2021 Other investments $ - $ - $ 104 $ 104 Total $ - $ - $ 104 $ 104 |
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 March 31, 2022 Assets: Mortgage and other loans receivable $ - $ 76 $ 47,337 $ 47,413 $ 47,428 Other invested assets - 822 6 828 828 Short-term investments - 6,288 - 6,288 6,288 Cash 2,537 - - 2,537 2,537 Other assets 29 11 - 40 40 Liabilities: Policyholder contract deposits associated with investment-type contracts - 155 142,466 142,621 134,562 Fortitude Re funds withheld payable - - 34,275 34,275 34,275 Other liabilities - 3,574 - 3,574 3,574 Long-term debt - 22,674 330 23,004 21,790 Debt of consolidated investment entities - 3,184 3,166 6,350 6,366 Separate account liabilities - investment contracts - 96,097 - 96,097 96,097 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 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments [Line Items] | |
Amortized cost or cost and fair value of available for sale securities | Allowance Gross Gross Amortized for Credit Unrealized Unrealized Fair (in millions) Cost Losses (a) Gains Losses Value March 31, 2022 Bonds available for sale: U.S. government and government sponsored entities $ 7,976 $ - $ 130 $ ( 239) $ 7,867 Obligations of states, municipalities and political subdivisions 13,105 - 674 ( 266) 13,513 Non-U.S. governments 15,408 ( 39) 284 ( 671) 14,982 Corporate debt 163,889 ( 137) 5,120 ( 7,244) 161,628 Mortgage-backed, asset-backed and collateralized: RMBS 23,644 ( 13) 1,551 ( 647) 24,535 CMBS 15,413 - 138 ( 451) 15,100 CDO/ABS 20,045 ( 2) 85 ( 534) 19,594 Total mortgage-backed, asset-backed and collateralized 59,102 ( 15) 1,774 ( 1,632) 59,229 Total bonds available for sale (b) $ 259,480 $ ( 191) $ 7,982 $ ( 10,052) $ 257,219 December 31, 2021 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 (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 March 31, 2022 and December 31, 2021, bonds available for sale held by us that were below investment grade or not rated totaled $ 24.8 billion or 10 percent and $ 27.0 billion or 10 percent, 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 March 31, 2022 Bonds available for sale: U.S. government and government sponsored entities $ 5,488 $ 205 $ 441 $ 34 $ 5,929 $ 239 Obligations of states, municipalities and political subdivisions 3,468 248 104 18 3,572 266 Non-U.S. governments 7,062 377 1,915 294 8,977 671 Corporate debt 77,592 5,689 10,362 1,531 87,954 7,220 RMBS 9,499 475 1,650 137 11,149 612 CMBS 9,615 423 220 28 9,835 451 CDO/ABS 15,337 512 394 22 15,731 534 Total bonds available for sale $ 128,061 $ 7,929 $ 15,086 $ 2,064 $ 143,147 $ 9,993 December 31, 2021 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 |
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 March 31, 2022 Due in one year or less $ 7,577 $ 7,574 Due after one year through five years 50,250 49,857 Due after five years through ten years 47,081 46,347 Due after ten years 95,294 94,212 Mortgage-backed, asset-backed and collateralized 59,087 59,229 Total $ 259,289 $ 257,219 |
Gross realized gains and gross realized losses from sales or maturities of available for sale securities | Three Months Ended March 31, 2022 2021 Gross Gross Gross Gross Realized Realized Realized Realized (in millions) Gains Losses Gains Losses Fixed maturity securities $ 97 $ 236 $ 460 $ 71 |
Value of other securities measured at fair value based on election of the fair value option | March 31, 2022 December 31, 2021 Fair Percent Fair Percent (in millions) Value of Total Value of Total Fixed maturity securities: U.S. government and government sponsored entities $ 1,689 23 % $ 1,750 25 % Obligations of states, municipalities and political subdivisions 98 1 97 1 Non-U.S. governments 85 1 76 1 Corporate debt 1,341 18 1,050 15 Mortgage-backed, asset-backed and collateralized: RMBS 312 4 411 6 CMBS 317 4 315 4 CDO/ABS and other collateralized 2,740 38 2,579 37 Total mortgage-backed, asset-backed and collateralized 3,369 46 3,305 47 Total fixed maturity securities 6,582 89 6,278 89 Equity securities 695 11 739 11 Total $ 7,277 100 % $ 7,017 100 % |
Carrying amounts values of other invested assets | March 31, December 31, (in millions) 2022 2021 Alternative investments (a) (b) $ 11,583 $ 10,951 Investment real estate (c) 2,627 2,727 All other investments (d) 1,976 1,990 Total $ 16,186 $ 15,668 (a) At March 31, 2022, included hedge funds of $ 1.8 billion and private equity funds of $ 9.7 billion. At December 31, 2021, included hedge funds of $ 2.0 billion, private equity funds of $ 8.9 billion. (b) At March 31, 2022, approximately 67 percent of our hedge fund portfolio is available for redemption in 2022. The remaining 33 percent will be available for redemption between 2023 and 2028. (c) Represents values net of accumulated depreciation. At March 31, 2022 and December 31, 2021, the accumulated depreciation was $ 802 million and $ 778 million, respectively. (d) Includes AIG’s ownership interest in Fortitude Group Holdings, LLC (FRL), which is recorded using the measurement alternative for equity securities. Our investment in FRL totaled $ 156 million and $ 100 million at March 31, 2022 and December 31, 2021, respectively. |
Components of net investment income | Three Months Ended March 31, 2022 2021 Excluding Fortitude Fortitude Re Excluding Fortitude Fortitude Re Re Funds Funds Withheld Re Funds Funds Withheld (in millions) Withheld Assets Assets Total Withheld Assets Assets Total Available for sale fixed maturity securities, including short-term investments $ 2,041 $ 301 $ 2,342 $ 2,178 $ 377 $ 2,555 Other fixed maturity securities (a) ( 201) ( 118) ( 319) ( 102) - ( 102) Equity securities ( 27) - ( 27) 22 - 22 Interest on mortgage and other loans 453 46 499 414 47 461 Alternative investments (b) 669 71 740 572 69 641 Real estate - - - 59 - 59 Other investments (c) 157 - 157 140 1 141 Total investment income 3,092 300 3,392 3,283 494 3,777 Investment expenses 146 9 155 112 8 120 Net investment income $ 2,946 $ 291 $ 3,237 $ 3,171 $ 486 $ 3,657 (a) Included in the three-month periods ended March 31, 2022 and 2021 was income (loss) of $( 95) million and $( 81) 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 three-month periods ended March 31, 2022 and 2021 was income (loss) of $ 91 million and $ 83 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 |
Components of net realized gains (losses) | Three Months Ended March 31, 2022 2021 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 Sales of fixed maturity securities $ ( 107) $ ( 32) $ ( 139) $ 94 $ 295 $ 389 Change in allowance for credit losses on fixed maturity securities ( 53) ( 40) ( 93) 51 2 53 Change in allowance for credit losses on loans ( 19) ( 8) ( 27) 41 ( 5) 36 Foreign exchange transactions ( 14) ( 9) ( 23) ( 49) ( 6) ( 55) Variable annuity embedded derivatives, net of related hedges 506 - 506 89 - 89 All other derivatives and hedge accounting 939 ( 56) 883 351 ( 117) 234 Sales of alternative investments and real estate investments 16 1 17 26 4 30 Other ( 27) 4 ( 23) 92 - 92 Net realized gains (losses) – excluding Fortitude Re funds withheld embedded derivative 1,241 ( 140) 1,101 695 173 868 Net realized gains on Fortitude Re funds withheld embedded derivative - 3,318 3,318 - 2,382 2,382 Net realized gains $ 1,241 $ 3,178 $ 4,419 $ 695 $ 2,555 $ 3,250 |
Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments | The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments: Three Months Ended March 31, (in millions) 2022 2021 Increase (decrease) in unrealized appreciation (depreciation) of investments: Fixed maturity securities $ ( 20,160) $ ( 11,649) Other investments ( 7) - Total increase (decrease) in unrealized appreciation (depreciation) of investments $ ( 20,167) $ ( 11,649) 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: Three Months Ended March 31, 2022 2021 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 $ ( 27) $ 475 $ 448 $ 22 $ 470 $ 492 Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period 94 ( 3) 91 ( 21) 24 3 Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date $ ( 121) $ 478 $ 357 $ 43 $ 446 $ 489 |
Rollforward of changes in allowance for credit losses on available for sale fixed maturity securities by major investment category | Three Months Ended March 31, 2022 2021 Non- Non- (in millions) Structured Structured Total Structured Structured Total Balance, beginning of period $ 8 $ 90 $ 98 $ 17 $ 169 $ 186 Additions: Securities for which allowance for credit losses were not previously recorded 49 128 177 2 13 15 Reductions: Securities sold during the period - ( 1) ( 1) ( 1) ( 4) ( 5) 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 ( 42) ( 42) ( 84) ( 4) ( 64) ( 68) Write-offs charged against the allowance - - - - ( 6) ( 6) Other - 1 1 - - - Balance, end of period $ 15 $ 176 $ 191 $ 14 $ 108 $ 122 |
Schedule of fair value of securities pledged to counterparties under secured financing transactions | (in millions) March 31, 2022 December 31, 2021 Fixed maturity securities available for sale $ 3,277 $ 3,583 Other bond securities, at fair value $ 31 $ - |
Schedule of fair value of securities pledged under repurchase agreements by collateral type and by remaining contractual maturity | Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2022 Bonds available for sale: Non-U.S. governments $ 64 $ - $ - $ - $ - $ 64 Corporate debt 212 73 - - - 285 Total $ 276 $ 73 $ - $ - $ - $ 349 December 31, 2021 Bonds available for sale: Non-U.S. governments $ 48 $ - $ - $ - $ - $ 48 Corporate debt 128 61 22 - - 211 Total $ 176 $ 61 $ 22 $ - $ - $ 259 Remaining Contractual Maturity of the Agreements (in millions) Overnight and Continuous up to 30 days 31 - 90 days 91 - 364 days 365 days or greater Total March 31, 2022 Bonds available for sale: Obligations of states, municipalities and political subdivisions $ - $ 149 $ - $ - $ - $ 149 Non-U.S. governments - 420 80 - - 500 Corporate debt - 1,812 469 - - 2,281 Other bond securities: Non-U.S. governments - - 9 - - 9 Corporate debt - - 20 - - 20 Total $ - $ 2,381 $ 578 $ - $ - $ 2,959 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 |
Schedule of fair value of securities pledged to the entity under reverse repurchase agreements | (in millions) March 31, 2022 December 31, 2021 Securities collateral pledged to us $ 530 $ 1,839 |
LENDING ACTIVITIES (Tables)
LENDING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
LENDING ACTIVITIES | |
Composition of Mortgages and other loans receivable | March 31, December 31, (in millions) 2022 2021 Commercial mortgages (a) $ 36,103 $ 35,665 Residential mortgages 5,666 5,492 Life insurance policy loans 1,816 1,843 Commercial loans, other loans and notes receivable (b) 4,502 3,677 Total mortgage and other loans receivable 48,087 46,677 Allowance for credit losses (c) ( 617) ( 629) Mortgage and other loans receivable, net $ 47,470 $ 46,048 (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 19 percent and 10 percent, respectively, at March 31, 2022 and 21 percent and 10 percent, respectively, at December 31, 2021). (b) Includes loans held for sale which are carried at lower of cost or market and are collateralized primarily by apartments. As of March 31, 2022 and December 31, 2021, the net carrying value of these loans were $ 105 million and $ 15 million, respectively. (c) Does not include allowance for credit losses of $ 106 million and $ 71 million, respectively, at March 31, 2022 and December 31, 2021, 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 | March 31, 2022 (in millions) 2022 2021 2020 2019 2018 Prior Total >1.2X $ 1,573 $ 2,294 $ 1,667 $ 5,061 $ 3,882 $ 13,760 $ 28,237 1.00 - 1.20X 21 620 1,036 606 1,403 2,170 5,856 <1.00X - 1 25 71 640 1,273 2,010 Total commercial mortgages $ 1,594 $ 2,915 $ 2,728 $ 5,738 $ 5,925 $ 17,203 $ 36,103 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 March 31, 2022 (in millions) 2022 2021 2020 2019 2018 Prior Total Less than 65% $ 1,070 $ 2,337 $ 2,276 $ 4,027 $ 4,756 $ 12,095 $ 26,561 65% to 75% 524 371 426 1,711 1,139 3,503 7,674 76% to 80% - 206 - - 30 470 706 Greater than 80% - 1 26 - - 1,135 1,162 Total commercial mortgages $ 1,594 $ 2,915 $ 2,728 $ 5,738 $ 5,925 $ 17,203 $ 36,103 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 (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 2.0X at March 31, 2022 and 1.9X at December 31, 2021. 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 March 31, 2022 and was 57 percent at December 31, 2021. 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 March 31, 2022 Credit Quality Performance Indicator: In good standing 627 $ 13,760 $ 9,592 $ 4,945 $ 4,554 $ 2,084 $ 420 $ 35,355 98 % Restructured (a) 10 - 353 140 - 137 - 630 2 90 days or less delinquent - - - - - - - - - >90 days delinquent or in process of foreclosure 3 - 67 51 - - - 118 - Total (b) 640 $ 13,760 $ 10,012 $ 5,136 $ 4,554 $ 2,221 $ 420 $ 36,103 100 % Allowance for credit losses $ 101 $ 227 $ 106 $ 56 $ 33 $ 10 $ 533 1 % 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 % (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 Note 6 to the Consolidated Financial Statements in the 2021 Annual Report. (b) Does not reflect allowance for credit losses. The following table presents credit quality performance indicators for residential mortgages by year of vintage: March 31, 2022 (in millions) 2022 2021 2020 2019 2018 Prior Total FICO*: 780 and greater $ 93 $ 2,307 $ 693 $ 255 $ 95 $ 631 $ 4,074 720 - 779 90 763 179 85 34 191 1,342 660 - 719 1 84 30 18 11 69 213 600 - 659 - 4 2 3 2 17 28 Less than 600 - - - 1 - 8 9 Total residential mortgages $ 184 $ 3,158 $ 904 $ 362 $ 142 $ 916 $ 5,666 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 * 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 | Three Months Ended March 31, 2022 2021 Commercial Other Commercial Other (in millions) Mortgages Loans Total Mortgages Loans Total Allowance, beginning of year $ 545 $ 84 $ 629 $ 685 $ 129 $ 814 Loans charged off ( 4) - ( 4) - - - Net charge-offs ( 4) - ( 4) - - - Addition to (release of) allowance for loan losses ( 8) - ( 8) ( 23) ( 4) ( 27) Allowance, end of period $ 533 $ 84 $ 617 $ 662 $ 125 $ 787 (a) Does not include allowance for credit losses of $ 106 million and $ 70 million, respectively, at March 31, 2022 and 2021 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Effects of Reinsurance [Line Items] | |
Summary of the composition of pool of assets | March 31, 2022 December 31, 2021 Carrying Fair Carrying Fair (in millions) Value Value Value Value Corresponding Accounting Policy Fixed maturity securities - available for sale (a) $ 26,513 $ 26,513 $ 31,815 $ 31,815 Fair value through other comprehensive income (loss) Fixed maturity securities - fair value option 2,711 2,711 1,983 1,983 Fair value through net investment income Commercial mortgage loans 3,889 3,940 3,637 3,859 Amortized cost Real estate investments 178 414 201 395 Amortized cost Private equity funds / hedge funds 1,724 1,724 1,606 1,606 Fair value through net investment income Policy loans 373 373 380 380 Amortized cost Short-term investments 81 81 50 50 Fair value through net investment income Funds withheld investment assets 35,469 35,756 39,672 40,088 Derivative assets, net (b) 72 72 81 81 Fair value through net realized gains (losses) Other (c) 653 653 602 602 Amortized cost Total $ 36,194 $ 36,481 $ 40,355 $ 40,771 (a) The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $( 3.3) billion ($( 2.6) billion after-tax) and $( 2.9) billion ($( 2.3) billion after-tax), respectively for the three months ended March 31, 2022 and 2021. (b) The derivative assets and liabilities have been presented net of cash collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 349 million and $ 16 million, respectively, as of March 31, 2022. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 389 million and $ 10 million, respectively, as of December 31, 2021. These derivative assets and liabilities are fully collateralized either by cash or securities. (c) Primarily comprised of Cash and Accrued investment income. |
Summary of the impact of modco and funds withheld | Three Months Ended March 31, (in millions) 2022 2021 Net underwriting income $ - $ - Net investment income - Fortitude Re funds withheld assets 291 486 Net realized gains (losses) on Fortitude Re funds withheld assets: Net realized gains (losses) - Fortitude Re funds withheld assets ( 140) 173 Net realized gains - Fortitude Re embedded derivatives 3,318 2,382 Net realized gains on Fortitude Re funds withheld assets 3,178 2,555 Income from continuing operations before income tax expense 3,469 3,041 Income tax expense (a) 728 639 Net income 2,741 2,402 Change in unrealized depreciation of all other investments (a) ( 2,638) ( 2,340) Comprehensive income $ 103 $ 62 (a) The income tax expense (benefit) and the tax impact in AOCI was computed using AIG’s U.S. statutory tax rate of 21 percent. |
Schedule of rollforward of allowance for credit losses | Three Months Ended March 31, 2022 2021 General Life and General Life and (in millions) Insurance Retirement Total Insurance Retirement Total Balance, beginning of year $ 281 $ 101 $ 382 $ 292 $ 83 $ 375 Addition to (release of) allowance for expected credit losses and disputes, net 5 4 9 1 4 5 Write-offs charged against the allowance for credit losses and disputes ( 2) - ( 2) ( 4) - ( 4) Other changes 2 - 2 2 - 2 Balance, end of period $ 286 $ 105 $ 391 $ 291 $ 87 $ 378 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entity Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | Real Estate and Investment Securitization (in millions) Entities (d) Vehicles Total March 31, 2022 Assets: Bonds available for sale $ - $ 5,581 $ 5,581 Other bond securities - 1,648 1,648 Equity securities 69 - 69 Mortgage and other loans receivable - 2,352 2,352 Other invested assets Alternative investments (a) 3,247 - 3,247 Investment real estate 2,191 - 2,191 Short-term investments 243 130 373 Cash 82 - 82 Accrued investment income - 17 17 Other assets 173 59 232 Total (b) $ 6,005 $ 9,787 $ 15,792 Liabilities: Debt of consolidated investment entities $ 1,694 $ 4,498 $ 6,192 Other (c) 112 117 229 Total $ 1,806 $ 4,615 $ 6,421 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 (a) Comprised primarily of investments in real estate joint ventures at March 31, 2022 and December 31, 2021. (b) The assets of each VIE can be used only to settle specific obligations of that VIE. (c) Comprised primarily of Other liabilities at March 31, 2022 and December 31, 2021. (d) At March 31, 2022 and December 31, 2021, off-balance sheet exposure primarily consisting of our insurance companies’ commitments to real estate and investment entities were $ 2.0 billion and $ 2.2 billion, respectively, of which commitments to external parties were $ 0.5 billion and $ 0.6 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 March 31, 2022 Real estate and investment entities (a) $ 461,827 $ 8,021 $ 3,617 (c) $ 11,638 Other 1,745 248 749 (d) 997 Total $ 463,572 $ 8,269 $ 4,366 $ 12,635 December 31, 2021 Real estate and investment entities (a) $ 457,335 $ 7,650 $ 3,448 (c) $ 11,098 Other 1,738 237 528 (d) 765 Total $ 459,073 $ 7,887 $ 3,976 $ 11,863 (a) Comprised primarily of hedge funds and private equity funds. (b) At March 31, 2022 and December 31, 2021, $ 8.2 billion and $ 7.8 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets. (c) These amounts represent our unfunded commitments to invest in private equity funds and hedge funds. (d) 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. |
DERIVATIVES AND HEDGE ACCOUNT_2
DERIVATIVES AND HEDGE ACCOUNTING (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
DERIVATIVES AND HEDGE ACCOUNTING | |
Notional amounts and fair values of derivative instruments | March 31, 2022 December 31, 2021 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 $ 242 $ 3 $ 918 $ 28 $ 265 $ 5 $ 895 $ 11 Foreign exchange contracts 7,522 571 3,276 195 5,431 467 5,828 197 Derivatives not designated as hedging instruments: (a) Interest rate contracts 51,215 4,000 53,844 4,376 47,499 3,868 42,113 3,622 Foreign exchange contracts 11,132 833 6,672 470 7,905 722 9,997 524 Equity contracts 26,873 403 4,250 55 27,423 681 5,091 53 Commodity contracts 196 3 138 - 303 4 219 - Credit contracts (b) 2,789 1 933 45 3,790 1 936 47 Other contracts (c) 44,152 14 - - 43,892 13 51 - Total derivatives, gross $ 144,121 $ 5,828 $ 70,031 $ 5,169 $ 136,508 $ 5,761 $ 65,130 $ 4,454 Counterparty netting (d) ( 3,295) ( 3,295) ( 2,779) ( 2,779) Cash collateral (e) ( 1,877) ( 1,478) ( 2,139) ( 1,089) Total derivatives on Condensed Consolidated Balance Sheets (f) $ 656 $ 396 $ 843 $ 586 (a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (b) As of March 31, 2022 and December 31, 2021, included CDSs on super senior multi-sector CDOs with a net notional amount of $ 94 million and $ 97 million (fair value liability of $ 31 million and $ 30 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 March 31, 2022 and December 31, 2021. Fair value of liabilities related to bifurcated embedded derivatives was $ 10.3 billion and $ 14.5 billion, respectively, at March 31, 2022 and December 31, 2021. A bifurcated embedded derivative is generally presented with the host contract in the Condensed 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 Three Months Ended March 31, 2022 Interest rate contracts: Interest credited to policyholder account balances $ ( 21) $ - $ 23 $ 2 Net investment income (loss) 1 - ( 1) - Foreign exchange contracts: Net realized gains/(losses) 109 42 ( 109) 42 Three Months Ended March 31, 2021 Interest rate contracts: Interest credited to policyholder account balances $ ( 4) $ - $ 6 $ 2 Net investment income (loss) 8 - ( 7) 1 Foreign exchange contracts: Net realized gains/(losses) 32 ( 29) ( 32) ( 29) (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 | Gains (Losses) Three Months Ended March 31, Recognized in Income (in millions) 2022 2021 By Derivative Type: Interest rate contracts $ ( 613) $ ( 1,545) Foreign exchange contracts 236 ( 87) Equity contracts ( 204) ( 519) Commodity contracts ( 4) - Credit contracts ( 1) ( 5) Other contracts 18 15 Embedded derivatives 5,285 4,839 Total $ 4,717 $ 2,698 By Classification: Policy fees $ 15 $ 15 Net investment income ( 1) ( 12) Net realized gains - excluding Fortitude Re funds withheld assets 1,448 440 Net realized gains on Fortitude Re funds withheld assets (a) 3,262 2,265 Policyholder benefits and claims incurred ( 7) ( 10) Total $ 4,717 $ 2,698 (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. |
INSURANCE LIABILITIES (Tables)
INSURANCE LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Claims Development [Line Items] | |
Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense | The following table presents the rollforward of activity in loss reserves: Three Months Ended March 31, (in millions) 2022 2021 Liability for unpaid loss and loss adjustment expenses, beginning of period $ 79,026 $ 77,720 Reinsurance recoverable ( 35,213) ( 34,431) Net Liability for unpaid loss and loss adjustment expenses, beginning of period 43,813 43,289 Losses and loss adjustment expenses incurred : Current year 3,882 3,925 Prior years, excluding discount and amortization of deferred gain ( 51) 16 Prior years, discount charge (benefit) 4 ( 18) Prior years, amortization of deferred gain on retroactive reinsurance (a) ( 42) ( 72) Total losses and loss adjustment expenses incurred 3,793 3,851 Losses and loss adjustment expenses paid : Current year ( 323) ( 328) Prior years ( 3,442) ( 3,584) Total losses and loss adjustment expenses paid ( 3,765) ( 3,912) Other changes : Foreign exchange effect 4 244 Retroactive reinsurance adjustment (net of discount) (b) 17 89 Total other changes 21 333 Liability for unpaid loss and loss adjustment expenses, end of period: Net liability for unpaid losses and loss adjustment expenses 43,862 43,561 Reinsurance recoverable 34,321 35,271 Total $ 78,183 $ 78,832 (a) Includes $ 4 million and $ 17 million for the retroactive reinsurance agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc. (Berkshire), covering U.S. asbestos exposures for the three-month periods ended March 31, 2022 and 2021, respectively. (b) Includes benefit (charge) from change in discount on retroactive reinsurance in the amount of $ million for both the three-month periods ended March 31, 2022 and 2021. |
Schedule of components of the loss reserve discount | (in millions) March 31, 2022 December 31, 2021 U.S. workers' compensation $ 1,849 $ 1,829 Retroactive reinsurance ( 914) ( 953) Total reserve discount (a)(b) $ 935 $ 876 (a) Excludes $ 118 million and $ 116 million of discount related to certain long-tail liabilities in the UK at March 31, 2022 and December 31, 2021, respectively. (b) Includes gross discount of $ 493 million and $ 500 million, which was 100 percent ceded to Fortitude Re at March 31, 2022 and December 31, 2021, respectively. The following table presents the net loss reserve discount benefit (charge): |
Schedule of loss reserve discount and loss reserve discount benefit (charge) | Three Months Ended March 31, (in millions) 2022 2021 Current accident year 24 $ 14 Accretion and other adjustments to prior year discount ( 4) 18 Net reserve discount benefit (charge) 20 32 Change in discount on loss reserves ceded under retroactive reinsurance 39 39 Net change in total reserve discount * 59 $ 71 * Excludes $ 2 million and $ 7 million discount related to certain long-tail liabilities in the UK for the three-month periods ended March 31, 2022 and 2021, respectively. |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Class of Stock [Line Items] | |
Rollforward of common stock outstanding | Three Months Ended March 31, 2022 Common Treasury Common Stock Stock Issued Stock Outstanding Shares, beginning of year 1,906,671,492 ( 1,087,984,129) 818,687,363 Shares issued - 4,910,231 4,910,231 Shares repurchased - ( 23,373,504) ( 23,373,504) Shares, end of period 1,906,671,492 ( 1,106,447,402) 800,224,090 |
Dividends Paid | The following table presents declaration date, record date, payment date and dividends paid per common share on AIG Common Stock in the three months ended March 31, 2022 and 2021: Dividends Paid Declaration Date Record Date Payment Date Per Common Share February 16, 2022 March 17, 2022 March 31, 2022 $ 0.32 February 16, 2021 March 16, 2021 March 30, 2021 $ 0.32 |
Repurchases Of Common Stock and Warrant | The following table presents repurchases of AIG Common Stock: Three Months Ended March 31, (in millions) 2022 2021 Aggregate repurchases of common stock * $ 1,403 $ 362 Total number of common shares repurchased 23 8 * For the three months ended March 31, 2021, 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. |
Accumulated Other Comprehensive Income (Loss) | Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total Balance, December 31, 2021, net of tax $ ( 57) $ 10,094 $ ( 2,453) $ ( 903) $ 6 $ 6,687 Change in unrealized depreciation of investments ( 57) ( 20,110) - - - ( 20,167) Change in deferred policy acquisition costs adjustment and other - 2,815 - - - 2,815 Change in future policy benefits - 1,183 - - - 1,183 Change in foreign currency translation adjustments - - ( 1) - - ( 1) Change in net actuarial loss - - - 11 - 11 Change in prior service cost - - - 1 - 1 Change in deferred tax asset (liability) 12 2,505 ( 4) ( 3) - 2,510 Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - - - Total other comprehensive income (loss) ( 45) ( 13,607) ( 5) 9 - ( 13,648) Noncontrolling interests ( 5) ( 1,076) 20 - - ( 1,061) Balance, March 31, 2022, net of tax $ ( 97) $ ( 2,437) $ ( 2,478) $ ( 894) $ 6 $ ( 5,900) Balance, December 31, 2020, net of tax $ ( 95) $ 17,093 $ ( 2,267) $ ( 1,228) $ 8 $ 13,511 Change in unrealized appreciation (depreciation) of investments 41 ( 11,690) - - - ( 11,649) Change in deferred policy acquisition costs adjustment and other ( 2) 1,393 - - - 1,391 Change in future policy benefits - 1,145 - - - 1,145 Change in foreign currency translation adjustments - - 170 - - 170 Change in net actuarial gain - - - ( 1) - ( 1) Change in prior service cost - - - 2 - 2 Change in deferred tax asset (liability) ( 6) 1,953 ( 45) ( 4) - 1,898 Change in fair value of liabilities under fair value option attributable to changes in own credit risk - - - - ( 1) ( 1) Total other comprehensive income (loss) 33 ( 7,199) 125 ( 3) ( 1) ( 7,045) Noncontrolling interests - - - - - - Balance, March 31, 2021, net of tax $ ( 62) $ 9,894 $ ( 2,142) $ ( 1,231) $ 7 $ 6,466 |
Other comprehensive income (loss) reclassification adjustments | Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total March 31, 2022 Unrealized change arising during period $ ( 57) $ ( 16,251) $ ( 1) $ 4 $ - $ ( 16,305) Less: Reclassification adjustments included in net income - ( 139) - ( 8) - ( 147) Total other comprehensive income (loss), before income tax expense (benefit) ( 57) ( 16,112) ( 1) 12 - ( 16,158) Less: Income tax expense (benefit) ( 12) ( 2,505) 4 3 - ( 2,510) Total other comprehensive income (loss), net of income tax expense (benefit) $ ( 45) $ ( 13,607) $ ( 5) $ 9 $ - $ ( 13,648) Fair Value of Unrealized Appreciation Unrealized Liabilities Under (Depreciation) of Fixed Appreciation Foreign Retirement Fair Value Option Maturity Securities on (Depreciation) Currency Plan Attributable to Which Allowance for of All Other Translation Liabilities Changes in (in millions) Credit Losses Was Taken Investments Adjustments Adjustment Own Credit Risk Total March 31, 2021 Unrealized change arising during period $ 37 $ ( 8,761) $ 170 $ ( 11) $ ( 1) $ ( 8,566) Less: Reclassification adjustments included in net income ( 2) 391 - ( 12) - 377 Total other comprehensive income (loss), before income tax expense (benefit) 39 ( 9,152) 170 1 ( 1) ( 8,943) Less: Income tax expense (benefit) 6 ( 1,953) 45 4 - ( 1,898) Total other comprehensive income (loss), net of income tax expense (benefit) $ 33 $ ( 7,199) $ 125 $ ( 3) $ ( 1) $ ( 7,045) |
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 | Amount Reclassified from AOCI Affected Line Item in the Three Months Ended March 31, Condensed Consolidated (in millions) 2022 2021 Statements of Income (Loss) Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken Investments $ - $ ( 2) Net realized gains (losses) Total - ( 2) Unrealized appreciation (depreciation) of all other investments Investments ( 139) 391 Net realized gains (losses) Total ( 139) 391 Change in retirement plan liabilities adjustment Prior-service credit ( 1) ( 1) * Actuarial losses ( 7) ( 11) * Total ( 8) ( 12) Total reclassifications for the period $ ( 147) $ 377 * These AOCI components are included in the computation of net periodic pension cost. For additional information see Note 14. |
Preferred Stock | |
Class of Stock [Line Items] | |
Dividends Paid | Dividends Paid Declaration Date Record Date Payment Date Per Preferred Share Per Depositary Share February 16, 2022 February 28, 2022 March 15, 2022 $ 365.625 $ 0.365625 February 16, 2021 February 26, 2021 March 15, 2021 $ 365.625 $ 0.365625 |
EARNINGS PER COMMON SHARE (EP_2
EARNINGS PER COMMON SHARE (EPS) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
EARNINGS PER COMMON SHARE (EPS) | |
Computation of basic and diluted EPS | Three Months Ended March 31, (dollars in millions, except per common share data) 2022 2021 Numerator for EPS: Income from continuing operations $ 4,656 $ 3,930 Less: Net income from continuing operations attributable to noncontrolling interests 396 54 Less: Preferred stock dividends 7 7 Income attributable to AIG common shareholders from continuing operations 4,253 3,869 Income from discontinued operations, net of income tax expense - - Net income attributable to AIG common shareholders 4,253 3,869 Denominator for EPS: Weighted average common shares outstanding - basic 816,314,273 868,105,069 Dilutive common shares 9,698,337 8,164,855 Weighted average common shares outstanding - diluted (a) 826,012,610 876,269,924 Income per common share attributable to AIG common shareholders: Basic: Income from continuing operations $ 5.21 $ 4.45 Income from discontinued operations $ - $ - Income attributable to AIG common shareholders $ 5.21 $ 4.45 Diluted: Income from continuing operations $ 5.15 $ 4.41 Income from discontinued operations $ - $ - Income attributable to AIG common shareholders $ 5.15 $ 4.41 (a) 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 Corebridge for AIG common shares. The number of common shares excluded from diluted shares outstanding was 39.9 million and 9.2 million for the three-month periods ended March 31, 2022 and 2021, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive. |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of net periodic benefit cost | Pension U.S. Non-U.S. (in millions) Plans Plans Total Three Months Ended March 31, 2022 Components of net periodic benefit cost: Service cost $ 1 $ 5 $ 6 Interest cost 27 3 30 Expected return on assets ( 53) ( 5) ( 58) Amortization of prior service cost - 1 1 Amortization of net loss 7 1 8 Net periodic benefit cost (credit) $ ( 18) $ 5 $ ( 13) Three Months Ended March 31, 2021 Components of net periodic benefit cost: Service cost $ 1 $ 5 $ 6 Interest cost 22 3 25 Expected return on assets ( 61) ( 6) ( 67) Amortization of prior service cost - 1 1 Amortization of net loss 9 2 11 Net periodic benefit cost (credit) $ ( 29) $ 5 $ ( 24) |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ / shares in Units, $ in Millions | Apr. 05, 2022USD ($) | Dec. 15, 2021USD ($) | Nov. 02, 2021USD ($)individual | Nov. 01, 2021USD ($) | Jul. 16, 2021USD ($)item | Mar. 31, 2022USD ($)item$ / shares | Mar. 31, 2021USD ($) | Dec. 31, 2026USD ($) | Dec. 31, 2021$ / shares |
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 | $ 40 | $ 7 | |||||||
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 | ||||||||
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 | ||||||||
Decrease to stockholders' equity related to disposal | 629 | ||||||||
Assets under management | 50,000 | ||||||||
Assets under management, incremental increase amount | $ 8,500 | ||||||||
Dividends payable | $ 8,300 | ||||||||
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 | ||||||||
Corebridge | |||||||||
Basis of Presentation [Line Items] | |||||||||
Number of directors | individual | 11 | ||||||||
Corebridge | Subsequent Event [Member] | |||||||||
Basis of Presentation [Line Items] | |||||||||
Notes issued | $ 6,500 | ||||||||
Blackstone | Corebridge | |||||||||
Basis of Presentation [Line Items] | |||||||||
Number of directors | individual | 1 | ||||||||
AIG's Interest In US Affordable Housing Portfolio | |||||||||
Basis of Presentation [Line Items] | |||||||||
Total consideration | $ 4,900 | ||||||||
Net income (loss) on sale of divested businesses | $ 3,000 | ||||||||
Forecast | Life and retirement subsidiaries | |||||||||
Basis of Presentation [Line Items] | |||||||||
Assets under management | $ 92,500 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Narratives) - USD ($) $ in Millions | Jan. 01, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Summary of Significant Accounting Policies [Line Items] | |||||
Stockholders' equity | $ 58,103 | $ 68,912 | $ 63,560 | $ 67,199 | |
ASU 2018-12 | Minimum | Scenario Forecast [Member] | Revision Of Prior Period Accounting Standards Update Adjustment [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Stockholders' equity | $ (1,000) | ||||
ASU 2018-12 | Maximum | Scenario Forecast [Member] | Revision Of Prior Period Accounting Standards Update Adjustment [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Stockholders' equity | $ (3,000) |
SEGMENT INFORMATION (Details -
SEGMENT INFORMATION (Details - Schedule of continuing operations by operating segment) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Total Revenues | $ 15,808 | $ 14,454 |
Adjusted Pre-tax Income (Loss) | 5,835 | 4,728 |
Total | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 11,144 | 10,762 |
Adjusted Pre-tax Income (Loss) | 1,514 | 1,256 |
General Insurance | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 7,021 | 6,638 |
Adjusted Pre-tax Income (Loss) | 1,211 | 845 |
General Insurance | Reportable Segments | North America | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 2,789 | 2,388 |
Adjusted Pre-tax Income (Loss) | 256 | (202) |
General Insurance | Reportable Segments | International | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 3,467 | 3,478 |
Adjusted Pre-tax Income (Loss) | 190 | 275 |
General Insurance | Reportable Segments | Net Investment Income | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 765 | 772 |
Adjusted Pre-tax Income (Loss) | 765 | 772 |
Life and Retirement | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 3,965 | 3,980 |
Adjusted Pre-tax Income (Loss) | 724 | 941 |
Life and Retirement | Reportable Segments | Individual Retirement | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 1,385 | 1,477 |
Adjusted Pre-tax Income (Loss) | 384 | 532 |
Life and Retirement | Reportable Segments | Group Retirement | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 744 | 806 |
Adjusted Pre-tax Income (Loss) | 225 | 307 |
Life and Retirement | Reportable Segments | Life Insurance | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 1,287 | 1,333 |
Adjusted Pre-tax Income (Loss) | (9) | (40) |
Life and Retirement | Reportable Segments | Institutional Markets | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 549 | 364 |
Adjusted Pre-tax Income (Loss) | 124 | 142 |
Other Operations | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 158 | 144 |
Adjusted Pre-tax Income (Loss) | (421) | (530) |
Other Operations | Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | 294 | 324 |
Adjusted Pre-tax Income (Loss) | (288) | (354) |
Other Operations | AIG Consolidation and Elimination | ||
Segment Reporting Information [Line Items] | ||
Total Revenues | (136) | (180) |
Adjusted Pre-tax Income (Loss) | $ (133) | $ (176) |
SEGMENT INFORMATION (Details _2
SEGMENT INFORMATION (Details - Schedule of continuing operations by operating segment, reconciling items) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reconciling items to pre-tax income (loss): | ||
Gain on extinguishment of debt | $ 0 | $ 8 |
Net Investment Income | 3,237 | 3,657 |
Net realized gains (losses) | 4,419 | 3,250 |
Net gain on divestitures | 40 | 7 |
Net loss reserve discount benefit (charge) | 20 | 32 |
Revenues | 15,808 | 14,454 |
Adjusted Pre-tax Income (Loss) | 5,835 | 4,728 |
Excluding Fortitude Re funds withheld assets | ||
Reconciling items to pre-tax income (loss): | ||
Net Investment Income | 2,946 | 3,171 |
Net realized gains (losses) | 1,241 | 695 |
Fortitude Re funds withheld assets | ||
Reconciling items to pre-tax income (loss): | ||
Net Investment Income | 291 | 486 |
Net realized gains (losses) | (140) | 173 |
Fortitude Re funds withheld embedded derivative | ||
Reconciling items to pre-tax income (loss): | ||
Net realized gains (losses) | 3,318 | 2,382 |
Total Revenues | ||
Reconciling items to pre-tax income (loss): | ||
Changes in fair values of securities used to hedge guaranteed living benefits | 14 | 18 |
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) | 0 | 0 |
Changes in fair value of equity securities | (27) | 22 |
Other income (expense) - net | (7) | (6) |
Gain on extinguishment of debt | 0 | 0 |
Net realized gains (losses) | 1,181 | 617 |
Net gain on divestitures | 0 | 0 |
Non-operating litigation reserves and settlements | 34 | 0 |
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 0 | 0 |
Net loss reserve discount benefit (charge) | 0 | 0 |
Integration and transaction costs associated with acquiring or divesting businesses | 0 | 0 |
Restructuring and other costs | 0 | 0 |
Non-recurring costs related to regulatory or accounting changes | 0 | 0 |
Total Revenues | Fortitude Re funds withheld assets | ||
Reconciling items to pre-tax income (loss): | ||
Net Investment Income | 291 | 486 |
Net realized gains (losses) | (140) | 173 |
Total Revenues | Fortitude Re funds withheld embedded derivative | ||
Reconciling items to pre-tax income (loss): | ||
Net realized gains (losses) | 3,318 | 2,382 |
Adjusted Pre-tax Income (Loss) | ||
Reconciling items to pre-tax income (loss): | ||
Changes in fair values of securities used to hedge guaranteed living benefits | 13 | 22 |
Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) | (273) | (203) |
Changes in fair value of equity securities | (27) | 22 |
Other income (expense) - net | 0 | 0 |
Gain on extinguishment of debt | 0 | 8 |
Net realized gains (losses) | 1,188 | 627 |
Net gain on divestitures | 40 | 7 |
Non-operating litigation reserves and settlements | 34 | 0 |
Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | 0 | 19 |
Net loss reserve discount benefit (charge) | 20 | 32 |
Integration and transaction costs associated with acquiring or divesting businesses | (46) | (9) |
Restructuring and other costs | (93) | (74) |
Non-recurring costs related to regulatory or accounting changes | (4) | (20) |
Adjusted Pre-tax Income (Loss) | Fortitude Re funds withheld assets | ||
Reconciling items to pre-tax income (loss): | ||
Net Investment Income | 291 | 486 |
Net realized gains (losses) | (140) | 173 |
Adjusted Pre-tax Income (Loss) | Fortitude Re funds withheld embedded derivative | ||
Reconciling items to pre-tax income (loss): | ||
Net realized gains (losses) | $ 3,318 | $ 2,382 |
SEGMENT INFORMATION (Details _3
SEGMENT INFORMATION (Details - Narrative) | 3 Months Ended |
Mar. 31, 2022segment | |
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 - Assets and Liabilities Measured at Fair Value on a Recurring Basis) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | [1] | $ 257,219 | $ 277,202 |
Other bond securities | [1] | 6,582 | 6,278 |
Equity securities | [1] | 695 | 739 |
Other invested assets | 11,687 | 10,504 | |
Derivative Assets, Fair Value, Gross | 5,828 | 5,761 | |
Derivative assets, Counterparty netting | (3,295) | (2,779) | |
Derivative assets, Cash collateral | (1,877) | (2,139) | |
Derivative assets | 656 | 843 | |
Short-term investments | 3,430 | 4,426 | |
Separate account assets, at fair value | 100,850 | 109,111 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 8,080 | 9,736 | |
Other policyholder funds | 3,768 | 3,476 | |
Derivative Liabilities, Fair Value, Gross | 5,169 | 4,454 | |
Derivative liabilities, Counterparty netting | (3,295) | (2,779) | |
Derivative liabilities, Cash collateral | (1,478) | (1,089) | |
Derivative liabilities | 396 | 586 | |
Fortitude Re funds withheld payable | 36,481 | 40,771 | |
Other liabilities | 396 | 586 | |
Long-term debt | 1,782 | 1,871 | |
Fair Value Using Net Asset Value Per Share or its equivalent | 9,451 | 8,418 | |
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 | 34,275 | 34,849 | |
Recurring Basis | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 257,219 | 277,202 | |
Other bond securities | 6,582 | 6,278 | |
Equity securities | 695 | 739 | |
Other invested assets | 2,080 | 2,086 | |
Derivative assets, Counterparty netting | (3,295) | (2,779) | |
Derivative assets, Cash collateral | (1,877) | (2,139) | |
Derivative assets, Counterparty netting and cash collateral | (5,172) | (4,918) | |
Derivative assets | 656 | 843 | |
Short-term investments | 3,430 | 4,426 | |
Other assets | 108 | 114 | |
Separate account assets, at fair value | 100,850 | 109,111 | |
Fair value assets measured on recurring basis, total | 371,620 | 400,799 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 8,080 | 9,736 | |
Derivative liabilities, Counterparty netting | (3,295) | (2,779) | |
Derivative liabilities, Cash collateral | (1,478) | (1,089) | |
Derivative liabilities, Counterparty netting and cash collateral | (4,773) | (3,868) | |
Derivative liabilities | 396 | 586 | |
Fortitude Re funds withheld payable | 2,206 | 5,922 | |
Long-term debt | 1,782 | 1,871 | |
Fair value liabilities measured on recurring basis, total | 12,464 | 18,115 | |
Recurring Basis | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 4,003 | 3,873 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 4,404 | 3,633 | |
Recurring Basis | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 1,404 | 1,189 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 665 | 721 | |
Recurring Basis | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 403 | 681 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 55 | 53 | |
Recurring Basis | Commodity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 3 | 4 | |
Recurring Basis | Credit contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 1 | 1 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 45 | 47 | |
Recurring Basis | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 14 | 13 | |
Recurring Basis | U.S. government and government sponsored entities | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 7,867 | 8,194 | |
Other bond securities | 1,689 | 1,750 | |
Recurring Basis | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 13,513 | 14,527 | |
Other bond securities | 98 | 97 | |
Recurring Basis | Non-U.S. governments | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 14,982 | 16,330 | |
Other bond securities | 85 | 76 | |
Recurring Basis | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 161,628 | 175,608 | |
Other bond securities | 1,341 | 1,050 | |
Recurring Basis | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 24,535 | 27,287 | |
Other bond securities | 312 | 411 | |
Recurring Basis | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 15,100 | 15,809 | |
Other bond securities | 317 | 315 | |
Recurring Basis | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 19,594 | 19,447 | |
Other bond securities | 2,740 | 2,579 | |
Recurring Basis | Level 1 | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 120 | 2,562 | |
Other bond securities | 0 | 0 | |
Equity securities | 639 | 669 | |
Other invested assets | 0 | 0 | |
Derivative Assets, Fair Value, Gross | 32 | 7 | |
Short-term investments | 2,140 | 2,584 | |
Other assets | 0 | 0 | |
Separate account assets, at fair value | 97,083 | 105,221 | |
Fair value assets measured on recurring basis, total | 100,014 | 111,043 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 0 | 0 | |
Derivative Liabilities, Fair Value, Gross | 9 | 2 | |
Fortitude Re funds withheld payable | 0 | 0 | |
Long-term debt | 0 | 0 | |
Fair value liabilities measured on recurring basis, total | 9 | 2 | |
Recurring Basis | Level 1 | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 1 | 0 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 2 | 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 | 31 | 7 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 7 | 1 | |
Recurring Basis | Level 1 | Commodity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 0 | 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 | |
Recurring Basis | Level 1 | U.S. government and government sponsored entities | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 8 | 2,553 | |
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 | 0 | |
Recurring Basis | Level 1 | Non-U.S. governments | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 112 | 9 | |
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 | 231,695 | 247,778 | |
Other bond securities | 3,622 | 3,581 | |
Equity securities | 50 | 64 | |
Other invested assets | 145 | 138 | |
Derivative Assets, Fair Value, Gross | 5,587 | 5,289 | |
Short-term investments | 1,290 | 1,842 | |
Other assets | 0 | 0 | |
Separate account assets, at fair value | 3,767 | 3,890 | |
Fair value assets measured on recurring basis, total | 246,156 | 262,582 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 50 | 54 | |
Derivative Liabilities, Fair Value, Gross | 5,116 | 4,415 | |
Fortitude Re funds withheld payable | 0 | 0 | |
Long-term debt | 1,782 | 1,871 | |
Fair value liabilities measured on recurring basis, total | 6,948 | 6,340 | |
Recurring Basis | Level 2 | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 3,998 | 3,873 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 4,402 | 3,632 | |
Recurring Basis | Level 2 | Foreign exchange contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 1,404 | 1,188 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 665 | 721 | |
Recurring Basis | Level 2 | Equity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 182 | 224 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 36 | 46 | |
Recurring Basis | Level 2 | Commodity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 3 | 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 | 13 | 16 | |
Recurring Basis | Level 2 | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, 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 | 7,859 | 5,641 | |
Other bond securities | 1,689 | 1,750 | |
Recurring Basis | Level 2 | Obligations of states, municipalities and political subdivisions | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 12,426 | 13,096 | |
Other bond securities | 98 | 97 | |
Recurring Basis | Level 2 | Non-U.S. governments | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 14,862 | 16,314 | |
Other bond securities | 85 | 76 | |
Recurring Basis | Level 2 | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 158,884 | 172,967 | |
Other bond securities | 1,081 | 916 | |
Recurring Basis | Level 2 | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 15,610 | 16,909 | |
Other bond securities | 113 | 215 | |
Recurring Basis | Level 2 | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 14,236 | 14,619 | |
Other bond securities | 284 | 280 | |
Recurring Basis | Level 2 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 7,818 | 8,232 | |
Other bond securities | 272 | 247 | |
Recurring Basis | Level 3 | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 25,404 | 26,862 | |
Other bond securities | 2,960 | 2,697 | |
Equity securities | 6 | 6 | |
Other invested assets | 1,935 | 1,948 | |
Derivative Assets, Fair Value, Gross | 209 | 465 | |
Short-term investments | 0 | 0 | |
Other assets | 108 | 114 | |
Separate account assets, at fair value | 0 | 0 | |
Fair value assets measured on recurring basis, total | 30,622 | 32,092 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Policyholder contract deposits, portion measured at fair value | 8,030 | 9,682 | |
Derivative Liabilities, Fair Value, Gross | 44 | 37 | |
Fortitude Re funds withheld payable | 2,206 | 5,922 | |
Long-term debt | 0 | 0 | |
Fair value liabilities measured on recurring basis, total | 10,280 | 15,641 | |
Recurring Basis | Level 3 | Interest rate contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 4 | 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 | 0 | 1 | |
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 | 190 | 450 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 12 | 6 | |
Recurring Basis | Level 3 | Commodity contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 0 | 0 | |
Recurring Basis | Level 3 | Credit contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 1 | 1 | |
Fair Value, Liabilities Measured on Recurring Basis | |||
Derivative Liabilities, Fair Value, Gross | 32 | 31 | |
Recurring Basis | Level 3 | Other contracts | |||
Fair Value, Assets Measured on Recurring Basis | |||
Derivative Assets, Fair Value, Gross | 14 | 13 | |
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 | 1,087 | 1,431 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 3 | Non-U.S. governments | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 8 | 7 | |
Other bond securities | 0 | 0 | |
Recurring Basis | Level 3 | Corporate debt | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 2,744 | 2,641 | |
Other bond securities | 260 | 134 | |
Recurring Basis | Level 3 | Residential mortgage-backed securities (RMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 8,925 | 10,378 | |
Other bond securities | 199 | 196 | |
Recurring Basis | Level 3 | Commercial mortgage-backed securities (CMBS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 864 | 1,190 | |
Other bond securities | 33 | 35 | |
Recurring Basis | Level 3 | Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS) | |||
Fair Value, Assets Measured on Recurring Basis | |||
Bonds available for sale | 11,776 | 11,215 | |
Other bond securities | $ 2,468 | $ 2,332 | |
[1] | See Note 8 for details of balances associated with variable interest entities. |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details - Changes in Level 3 Recurring Fair Value Measurements) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | $ 31,627 | $ 31,578 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 136 | 338 |
Other Comprehensive Income (Loss), assets | (1,485) | (178) |
Purchases, Sales, Issuances and Settlements, Net, assets | 346 | (552) |
Gross Transfers In, assets | 1,411 | 779 |
Gross Transfers Out, assets | (1,622) | (667) |
Other | 0 | 0 |
Fair Value End of Period, assets | 30,413 | 31,298 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | (50) | 28 |
Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period, assets | (1,451) | (175) |
Liabilities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, liabilities | 15,176 | 15,721 |
Net realized and unrealized gains (losses) included in income, liabilities | (4,832) | (4,679) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (273) | (165) |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 40 |
Other | 0 | 0 |
Fair Value End of Year, liabilities | 10,071 | 10,917 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 5,239 | 5,419 |
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 | 9,682 | 9,798 |
Net realized and unrealized gains (losses) included in income, liabilities | (1,797) | (2,260) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 145 | 79 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Other | 0 | 0 |
Fair Value End of Year, liabilities | 8,030 | 7,617 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 1,983 | 2,570 |
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 | (428) | (119) |
Net realized and unrealized gains (losses) included in income, liabilities | 283 | (37) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (20) | (71) |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 40 |
Other | 0 | 0 |
Fair Value End of Year, liabilities | (165) | (187) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | (224) | (106) |
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) | 0 |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (3) | 0 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Other | 0 | 0 |
Fair Value End of Year, liabilities | (4) | 0 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 1 | 0 |
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 | (1) | (2) |
Net realized and unrealized gains (losses) included in income, liabilities | 0 | 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 | 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) | (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 | (444) | (151) |
Net realized and unrealized gains (losses) included in income, liabilities | 301 | (26) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (35) | (85) |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 40 |
Other | 0 | 0 |
Fair Value End of Year, liabilities | (178) | (222) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | (241) | (118) |
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 | 30 | 42 |
Net realized and unrealized gains (losses) included in income, liabilities | 1 | 5 |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 0 | (3) |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Other | 0 | 0 |
Fair Value End of Year, liabilities | 31 | 44 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | (1) | (3) |
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 | (13) | (8) |
Net realized and unrealized gains (losses) included in income, liabilities | (18) | (17) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 17 | 16 |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Other | 0 | 0 |
Fair Value End of Year, liabilities | (14) | (9) |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 18 | 16 |
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 | 5,922 | 6,042 |
Net realized and unrealized gains (losses) included in income, liabilities | (3,318) | (2,382) |
Other Comprehensive Income (Loss), liabilities | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (398) | (173) |
Gross Transfers In, liabilities | 0 | 0 |
Gross Transfers Out, liabilities | 0 | 0 |
Other | 0 | 0 |
Fair Value End of Year, liabilities | 2,206 | 3,487 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, liabilities | 3,480 | 2,955 |
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 | 26,862 | 26,889 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 145 | 194 |
Other Comprehensive Income (Loss), assets | (1,479) | (175) |
Purchases, Sales, Issuances and Settlements, Net, assets | 85 | (298) |
Gross Transfers In, assets | 1,246 | 698 |
Gross Transfers Out, assets | (1,455) | (666) |
Other | 0 | 0 |
Fair Value End of Period, assets | 25,404 | 26,642 |
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 | (1,451) | (175) |
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 | 1,431 | 2,105 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 2 | 3 |
Other Comprehensive Income (Loss), assets | (285) | (159) |
Purchases, Sales, Issuances and Settlements, Net, assets | (61) | (53) |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Other | 0 | 0 |
Fair Value End of Period, assets | 1,087 | 1,896 |
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 | (273) | (10) |
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 | 7 | 5 |
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 | 0 | 0 |
Gross Transfers In, assets | 1 | 1 |
Gross Transfers Out, assets | 0 | 0 |
Other | 0 | 0 |
Fair Value End of Period, assets | 8 | 6 |
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 | 2,641 | 2,349 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | (11) | (1) |
Other Comprehensive Income (Loss), assets | (73) | (10) |
Purchases, Sales, Issuances and Settlements, Net, assets | 177 | 177 |
Gross Transfers In, assets | 130 | 187 |
Gross Transfers Out, assets | (120) | (132) |
Other | 0 | 0 |
Fair Value End of Period, assets | 2,744 | 2,570 |
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 | (69) | (159) |
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 | 10,378 | 11,694 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 130 | 167 |
Other Comprehensive Income (Loss), assets | (553) | 64 |
Purchases, Sales, Issuances and Settlements, Net, assets | (608) | (431) |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | (422) | (30) |
Other | 0 | 0 |
Fair Value End of Period, assets | 8,925 | 11,464 |
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 | (544) | (14) |
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 | 1,190 | 922 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 8 | 9 |
Other Comprehensive Income (Loss), assets | (67) | (56) |
Purchases, Sales, Issuances and Settlements, Net, assets | 32 | 173 |
Gross Transfers In, assets | 0 | 56 |
Gross Transfers Out, assets | (299) | 0 |
Other | 0 | 0 |
Fair Value End of Period, assets | 864 | 1,104 |
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 | (64) | (56) |
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 | 11,215 | 9,814 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 16 | 16 |
Other Comprehensive Income (Loss), assets | (501) | (14) |
Purchases, Sales, Issuances and Settlements, Net, assets | 545 | (164) |
Gross Transfers In, assets | 1,115 | 454 |
Gross Transfers Out, assets | (614) | (504) |
Other | 0 | 0 |
Fair Value End of Period, assets | 11,776 | 9,602 |
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 | (501) | 64 |
Other bond securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 2,697 | 2,698 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | (121) | (9) |
Other Comprehensive Income (Loss), assets | (1) | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | 281 | (177) |
Gross Transfers In, assets | 118 | 6 |
Gross Transfers Out, assets | (14) | 0 |
Other | 0 | 0 |
Fair Value End of Period, assets | 2,960 | 2,518 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | (171) | (98) |
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 | 134 | |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 0 | |
Other Comprehensive Income (Loss), assets | 0 | |
Purchases, Sales, Issuances and Settlements, Net, assets | 77 | |
Gross Transfers In, assets | 61 | |
Gross Transfers Out, assets | (12) | |
Other | 0 | |
Fair Value End of Period, assets | 260 | |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | |
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 | 196 | 139 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | (5) | 3 |
Other Comprehensive Income (Loss), assets | (1) | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | 9 | (16) |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Other | 0 | 0 |
Fair Value End of Period, assets | 199 | 126 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | (8) | (98) |
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 | 35 | 47 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | (2) | (1) |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | 0 | (6) |
Gross Transfers In, assets | 0 | 6 |
Gross Transfers Out, assets | 0 | 0 |
Other | 0 | 0 |
Fair Value End of Period, assets | 33 | 46 |
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 | 2,332 | 2,512 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | (114) | (11) |
Other Comprehensive Income (Loss), assets | 0 | 0 |
Purchases, Sales, Issuances and Settlements, Net, assets | 195 | (155) |
Gross Transfers In, assets | 57 | 0 |
Gross Transfers Out, assets | (2) | 0 |
Other | 0 | 0 |
Fair Value End of Period, assets | 2,468 | 2,346 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | (161) | 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 |
Equity securities | ||
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation | ||
Fair Value Beginning of Period, assets | 6 | 51 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 0 | 11 |
Other Comprehensive Income (Loss), assets | (1) | 3 |
Purchases, Sales, Issuances and Settlements, Net, assets | 1 | (11) |
Gross Transfers In, assets | 0 | 75 |
Gross Transfers Out, assets | 0 | (1) |
Other | 0 | 0 |
Fair Value End of Period, assets | 6 | 128 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 0 | 3 |
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 | 1,948 | 1,827 |
Net Realized and Unrealized Gains (Losses) Included in Income, assets | 112 | 142 |
Other Comprehensive Income (Loss), assets | (4) | (6) |
Purchases, Sales, Issuances and Settlements, Net, assets | (15) | (66) |
Gross Transfers In, assets | 47 | 0 |
Gross Transfers Out, assets | (153) | 0 |
Other | 0 | 0 |
Fair Value End of Period, assets | 1,935 | 1,897 |
Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period, assets | 121 | 123 |
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 | 114 | 113 |
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 | (6) | 0 |
Gross Transfers In, assets | 0 | 0 |
Gross Transfers Out, assets | 0 | 0 |
Other | 0 | 0 |
Fair Value End of Period, assets | 108 | 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_3
FAIR VALUE MEASUREMENTS (Details - Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
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 | $ 136 | $ 338 |
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 | (1,797) | (2,260) |
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 | (1,797) | (2,260) |
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 | 283 | (37) |
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 | 298 | (23) |
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 | (15) | (14) |
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 | (3,318) | (2,382) |
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 | (3,318) | (2,382) |
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 | 145 | 194 |
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 | 164 | 185 |
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 | (19) | 9 |
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 | (121) | (9) |
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 | (121) | (9) |
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 | 0 |
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 | 0 | 11 |
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 | |
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 | |
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 | |
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 | 112 | 142 |
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 | 112 | 142 |
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 | 0 | 0 |
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_4
FAIR VALUE MEASUREMENTS (Details - Gross components of purchases, sales, issuances and settlements) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, Sales, Issuances and Settlements, Net, assets | $ 346,000,000 | $ (552,000,000) |
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 | (34,000,000) | 19,000,000 |
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. | (41,000,000) | (4,000,000) |
Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (85,000,000) | (52,000,000) |
Sales, liabilities | 219,000,000 | 192,000,000 |
Issuances and Settlements, liabilities | (407,000,000) | (305,000,000) |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (273,000,000) | (165,000,000) |
Policyholder contract deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | 0 | 0 |
Sales, liabilities | 217,000,000 | 191,000,000 |
Issuances and Settlements, liabilities | (72,000,000) | (112,000,000) |
Purchases, Sales, Issuances and Settlements, Net, liabilities | 145,000,000 | 79,000,000 |
Derivative liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, liabilities | (85,000,000) | (52,000,000) |
Sales, liabilities | 2,000,000 | 1,000,000 |
Issuances and Settlements, liabilities | 63,000,000 | (20,000,000) |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (20,000,000) | (71,000,000) |
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 | (398,000,000) | (173,000,000) |
Purchases, Sales, Issuances and Settlements, Net, liabilities | (398,000,000) | (173,000,000) |
Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1,692,000,000 | 1,680,000,000 |
Sales, assets | (60,000,000) | (115,000,000) |
Issuances and Settlements, assets | (1,286,000,000) | (2,117,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 346,000,000 | (552,000,000) |
Bonds available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 1,075,000,000 | 1,482,000,000 |
Sales, assets | (60,000,000) | (70,000,000) |
Issuances and Settlements, assets | (930,000,000) | (1,710,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 85,000,000 | (298,000,000) |
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 | 1,000,000 | 8,000,000 |
Sales, assets | (60,000,000) | (20,000,000) |
Issuances and Settlements, assets | (2,000,000) | (41,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (61,000,000) | (53,000,000) |
Bonds available for sale | Non-U.S. governments | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, Sales, Issuances and Settlements, Net, assets | 0 | 0 |
Bonds available for sale | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 9,000,000 | 741,000,000 |
Sales, assets | 0 | (1,000,000) |
Issuances and Settlements, assets | 168,000,000 | (563,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 177,000,000 | 177,000,000 |
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 | 109,000,000 | 164,000,000 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | (717,000,000) | (595,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (608,000,000) | (431,000,000) |
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 | 70,000,000 | 193,000,000 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | (38,000,000) | (20,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 32,000,000 | 173,000,000 |
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 | 886,000,000 | 376,000,000 |
Sales, assets | 0 | (49,000,000) |
Issuances and Settlements, assets | (341,000,000) | (491,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 545,000,000 | (164,000,000) |
Other bond securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 359,000,000 | 0 |
Sales, assets | 0 | (45,000,000) |
Issuances and Settlements, assets | (78,000,000) | (132,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 281,000,000 | (177,000,000) |
Other bond securities | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 19,000,000 | |
Sales, assets | 0 | |
Issuances and Settlements, assets | 58,000,000 | |
Purchases, Sales, Issuances and Settlements, Net, assets | 77,000,000 | |
Other bond securities | Residential mortgage-backed securities (RMBS) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 17,000,000 | 0 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | (8,000,000) | (16,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 9,000,000 | (16,000,000) |
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 | |
Sales, assets | (6,000,000) | |
Issuances and Settlements, assets | 0 | |
Purchases, Sales, Issuances and Settlements, Net, assets | 0 | (6,000,000) |
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 | 323,000,000 | 0 |
Sales, assets | 0 | (39,000,000) |
Issuances and Settlements, assets | (128,000,000) | (116,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 195,000,000 | (155,000,000) |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | 0 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | 1,000,000 | (11,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | 1,000,000 | (11,000,000) |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 258,000,000 | 198,000,000 |
Sales, assets | 0 | 0 |
Issuances and Settlements, assets | (273,000,000) | (264,000,000) |
Purchases, Sales, Issuances and Settlements, Net, assets | (15,000,000) | (66,000,000) |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Purchases, assets | 0 | |
Sales, assets | 0 | |
Issuances and Settlements, assets | (6,000,000) | |
Purchases, Sales, Issuances and Settlements, Net, assets | $ (6,000,000) | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_5
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Assets) $ in Millions | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Obligations of states, municipalities and political subdivisions | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0370 | 0.0274 |
Obligations of states, municipalities and political subdivisions | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0449 | 0.0333 |
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 | 0.0410 | 0.0306 |
Obligations of states, municipalities and political subdivisions | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 1,057 | $ 1,400 |
Corporate debt | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0198 | 0.0223 |
Corporate debt | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0654 | 0.0769 |
Corporate debt | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0426 | 0.0496 |
Corporate debt | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 2,563 | $ 1,561 |
Residential mortgage-backed securities | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0354 | 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 | 0.0490 | 0.0525 |
Residential mortgage-backed securities | Minimum | Measurement Input Loss Severity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.3804 | 0.2613 |
Residential mortgage-backed securities | Minimum | Measurement Input Constant Default Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0123 | 0.0115 |
Residential mortgage-backed securities | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0534 | 0.0397 |
Residential mortgage-backed securities | Maximum | Measurement Input Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.1037 | 0.1770 |
Residential mortgage-backed securities | Maximum | Measurement Input Loss Severity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.6775 | 0.7193 |
Residential mortgage-backed securities | Maximum | Measurement Input Constant Default Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0347 | 0.0585 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0444 | 0.0283 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Constant Prepayment Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0763 | 0.1147 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Loss Severity [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.5290 | 0.4903 |
Residential mortgage-backed securities | Weighted-average | Measurement Input Constant Default Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0235 | 0.0350 |
Residential mortgage-backed securities | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 7,006 | $ 9,916 |
Certain CDO/ABS | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0344 | 0.0184 |
Certain CDO/ABS | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0615 | 0.0477 |
Certain CDO/ABS | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0479 | 0.0331 |
Certain CDO/ABS | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 8,496 | $ 8,229 |
Commercial mortgage backed securities | Minimum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0317 | 0.0150 |
Commercial mortgage backed securities | Maximum | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0562 | 0.0501 |
Commercial mortgage backed securities | Weighted-average | Measurement Input Yield [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Debt instrument, measurement input | 0.0440 | 0.0325 |
Commercial mortgage backed securities | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 626 | $ 580 |
FAIR VALUE MEASUREMENTS (Deta_6
FAIR VALUE MEASUREMENTS (Details - Quantitative Information about Level 3 Fair Value Measurements, Liabilities) $ in Millions | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
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 | 0.0585 | 0.0595 |
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 | 0.2000 |
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 | 0.0017 | 0.0001 |
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 | 0.4625 | 0.4665 |
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 | 1.8600 |
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 | 0.0172 | 0.0140 |
Variable annuity guaranteed minimum withdrawal benefits | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 1,667 | $ 2,472 |
Index annuities including certain GMWB | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability | $ 1,000 | $ 1,200 |
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 | 0.2000 |
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 | 0.6000 |
Index annuities including certain GMWB | Minimum | Measurement Input Lapse Rate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Embedded derivative liability, measurement input | 0.0050 | 0.0050 |
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 | 0.0017 | 0.0001 |
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 | 1.8600 |
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 | 0.9500 |
Index annuities including certain GMWB | Maximum | Measurement Input Lapse Rate [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 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 | 0.0172 | 0.0140 |
Index annuities including certain GMWB | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 5,673 | $ 6,445 |
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 | 0.0017 | 0.0001 |
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 | 0.0172 | 0.0140 |
Indexed Life | Discounted cash flow | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 690 | $ 765 |
FAIR VALUE MEASUREMENTS (Deta_7
FAIR VALUE MEASUREMENTS (Details - Investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value Using Net Asset Value Per Share or its equivalent | $ 9,451 | $ 8,418 |
Unfunded Commitments | 3,545 | 3,330 |
Private equity 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 | 7,747 | 6,588 |
Unfunded Commitments | $ 3,545 | 3,330 |
Average original expected lives | 10 years | |
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 | $ 2,993 | 2,768 |
Unfunded Commitments | 1,979 | 1,798 |
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 | 1,515 | 904 |
Unfunded Commitments | 613 | 487 |
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 | 266 | 252 |
Unfunded Commitments | 211 | 201 |
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 | 917 | 914 |
Unfunded Commitments | 67 | 82 |
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 | 566 | 534 |
Unfunded Commitments | 313 | 354 |
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 | 1,490 | 1,216 |
Unfunded Commitments | 362 | 408 |
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 | 1,704 | 1,830 |
Unfunded Commitments | 0 | 0 |
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 | 484 | 466 |
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 | 345 | 432 |
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 | 474 | 516 |
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 | 401 | 416 |
Unfunded Commitments | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_8
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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value option gain (loss) | $ 300 | $ 389 |
Other bond securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value option gain (loss) | (201) | (99) |
Alternative investments | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value option gain (loss) | 398 | 417 |
Long-term debt | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value option gain (loss) | $ 103 | $ 71 |
FAIR VALUE MEASUREMENTS (Deta_9
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, Fair Value | $ 1,782 | $ 1,871 |
Fair Value Option | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, Fair Value | 1,782 | 1,871 |
Long-term debt, Outstanding Principal Amount | 1,437 | 1,405 |
Long-term debt, Difference | $ 345 | $ 466 |
FAIR VALUE MEASUREMENTS (Det_10
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 | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | $ 0 | $ 104 | |
Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 104 | |
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 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 3 | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | 104 | |
Level 3 | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 0 | $ 104 | |
Fair value on a non-recurring basis | Fair Value Assets Impairment Charges Measured on Nonrecurring Basis [Domain] | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Impairment Charges | 0 | $ 6 | |
Fair value on a non-recurring basis | Other investments | |||
Fair Value Assets Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 156 | ||
Impairment Charges | $ 0 | $ 6 |
FAIR VALUE MEASUREMENTS (Det_11
FAIR VALUE MEASUREMENTS (Details - Carrying values and estimated fair values of our financial instruments not measured at fair value) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |||
Assets: | ||||||
Mortgage and other loans receivable | [1] | $ 47,470 | $ 46,048 | |||
Short-term investments | [1] | 9,718 | 13,357 | |||
Cash | 2,537 | [1] | 2,198 | [1] | $ 2,796 | |
Other assets | [1] | 13,205 | 14,351 | |||
Liabilities: | ||||||
Fortitude Re funds withheld payable | 36,481 | 40,771 | ||||
Other liabilities | [1] | 29,300 | 28,704 | |||
Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | [1] | 6,366 | 6,422 | |||
Carrying Value | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 47,428 | 46,033 | ||||
Other invested assets | 828 | 878 | ||||
Short-term investments | 6,288 | 8,931 | ||||
Cash | 2,537 | 2,198 | ||||
Other assets | 40 | 32 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 134,562 | 133,043 | ||||
Fortitude Re funds withheld payable | 34,275 | 34,849 | ||||
Other liabilities | 3,574 | 3,704 | ||||
Separate account liabilities - investment contracts | 96,097 | 104,126 | ||||
Carrying Value | American International Group, Inc. | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 21,790 | 21,870 | ||||
Carrying Value | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 6,366 | 6,422 | ||||
Total Fair Value | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 47,413 | 48,029 | ||||
Other invested assets | 828 | 877 | ||||
Short-term investments | 6,288 | 8,931 | ||||
Cash | 2,537 | 2,198 | ||||
Other assets | 40 | 32 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 142,621 | 143,143 | ||||
Fortitude Re funds withheld payable | 34,275 | 34,849 | ||||
Other liabilities | 3,574 | 3,704 | ||||
Separate account liabilities - investment contracts | 96,097 | 104,126 | ||||
Total Fair Value | American International Group, Inc. | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 23,004 | 25,094 | ||||
Total Fair Value | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 6,350 | 6,390 | ||||
Level 1 | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 0 | 0 | ||||
Other invested assets | 0 | 0 | ||||
Short-term investments | 0 | 0 | ||||
Cash | 2,537 | 2,198 | ||||
Other assets | 29 | 21 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 0 | 0 | ||||
Fortitude Re funds withheld payable | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Separate account liabilities - investment contracts | 0 | 0 | ||||
Level 1 | American International Group, Inc. | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 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 | 76 | 82 | ||||
Other invested assets | 822 | 871 | ||||
Short-term investments | 6,288 | 8,931 | ||||
Cash | 0 | 0 | ||||
Other assets | 11 | 11 | ||||
Liabilities: | ||||||
Policyholder contract deposits associated with investment-type contracts | 155 | 169 | ||||
Fortitude Re funds withheld payable | 0 | 0 | ||||
Other liabilities | 3,574 | 3,704 | ||||
Separate account liabilities - investment contracts | 96,097 | 104,126 | ||||
Level 2 | American International Group, Inc. | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 22,674 | 24,758 | ||||
Level 2 | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 3,184 | 3,077 | ||||
Level 3 | ||||||
Assets: | ||||||
Mortgage and other loans receivable | 47,337 | 47,947 | ||||
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 | 142,466 | 142,974 | ||||
Fortitude Re funds withheld payable | 34,275 | 34,849 | ||||
Other liabilities | 0 | 0 | ||||
Separate account liabilities - investment contracts | 0 | 0 | ||||
Level 3 | American International Group, Inc. | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | 330 | 336 | ||||
Level 3 | Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt and debt of consolidated investment entities | $ 3,166 | $ 3,313 | ||||
[1] | See Note 8 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 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | $ 259,480 | $ 259,210 | ||
Available for sale securities, Allowance for Credit Losses | (191) | (98) | $ (122) | |
Available for sale securities, Fair Value | [1] | 257,219 | 277,202 | |
Bonds available for sale | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 259,480 | 259,210 | ||
Available for sale securities, Allowance for Credit Losses | (191) | (98) | ||
Available for sale securities, Gross Unrealized Gains | 7,982 | 19,993 | ||
Available for sale securities, Gross Unrealized Losses | (10,052) | (1,903) | ||
Available for sale securities, Fair Value | 257,219 | 277,202 | ||
Available for sale securities not rated or rated below investment grade | $ 24,800 | $ 27,000 | ||
Available for sale securities, percentage that are below investment grade or not rated | 10.00% | 10.00% | ||
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 | $ 7,976 | $ 7,874 | ||
Available for sale securities, Allowance for Credit Losses | 0 | 0 | ||
Available for sale securities, Gross Unrealized Gains | 130 | 347 | ||
Available for sale securities, Gross Unrealized Losses | (239) | (27) | ||
Available for sale securities, Fair Value | 7,867 | 8,194 | ||
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 | 13,105 | 12,760 | ||
Available for sale securities, Allowance for Credit Losses | 0 | 0 | ||
Available for sale securities, Gross Unrealized Gains | 674 | 1,782 | ||
Available for sale securities, Gross Unrealized Losses | (266) | (15) | ||
Available for sale securities, Fair Value | 13,513 | 14,527 | ||
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 | 15,408 | 15,858 | ||
Available for sale securities, Allowance for Credit Losses | (39) | 0 | ||
Available for sale securities, Gross Unrealized Gains | 284 | 719 | ||
Available for sale securities, Gross Unrealized Losses | (671) | (247) | ||
Available for sale securities, Fair Value | 14,982 | 16,330 | ||
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 | 163,889 | 163,064 | ||
Available for sale securities, Allowance for Credit Losses | (137) | (89) | ||
Available for sale securities, Gross Unrealized Gains | 5,120 | 13,892 | ||
Available for sale securities, Gross Unrealized Losses | (7,244) | (1,259) | ||
Available for sale securities, Fair Value | 161,628 | 175,608 | ||
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 | 59,102 | 59,654 | ||
Available for sale securities, Allowance for Credit Losses | (15) | (9) | ||
Available for sale securities, Gross Unrealized Gains | 1,774 | 3,253 | ||
Available for sale securities, Gross Unrealized Losses | (1,632) | (355) | ||
Available for sale securities, Fair Value | 59,229 | 62,543 | ||
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 | 23,644 | 25,027 | ||
Available for sale securities, Allowance for Credit Losses | (13) | (9) | ||
Available for sale securities, Gross Unrealized Gains | 1,551 | 2,422 | ||
Available for sale securities, Gross Unrealized Losses | (647) | (153) | ||
Available for sale securities, Fair Value | 24,535 | 27,287 | ||
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 | 15,413 | 15,333 | ||
Available for sale securities, Allowance for Credit Losses | 0 | 0 | ||
Available for sale securities, Gross Unrealized Gains | 138 | 555 | ||
Available for sale securities, Gross Unrealized Losses | (451) | (79) | ||
Available for sale securities, Fair Value | 15,100 | 15,809 | ||
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 | 20,045 | 19,294 | ||
Available for sale securities, Allowance for Credit Losses | (2) | 0 | ||
Available for sale securities, Gross Unrealized Gains | 85 | 276 | ||
Available for sale securities, Gross Unrealized Losses | (534) | (123) | ||
Available for sale securities, Fair Value | $ 19,594 | $ 19,447 | ||
[1] | See Note 8 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 | Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($)security |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | $ 128,061 | $ 58,573 |
Gross Unrealized Losses, Less than 12 Months | 7,929 | 1,137 |
Fair Value, 12 Months or More | 15,086 | 12,293 |
Gross Unrealized Losses, 12 Months or More | 2,064 | 689 |
Fair Value, Total | 143,147 | 70,866 |
Gross Unrealized Losses, Total | $ 9,993 | $ 1,826 |
Number of securities in an unrealized loss position | security | 26,173 | 15,029 |
Number of individual securities in continuous unrealized loss position for longer than twelve months | security | 3,631 | 2,644 |
U.S. government and government sponsored entities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | $ 5,488 | $ 3,696 |
Gross Unrealized Losses, Less than 12 Months | 205 | 14 |
Fair Value, 12 Months or More | 441 | 447 |
Gross Unrealized Losses, 12 Months or More | 34 | 13 |
Fair Value, Total | 5,929 | 4,143 |
Gross Unrealized Losses, Total | 239 | 27 |
Obligations of states, municipalities and political subdivisions | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 3,468 | 714 |
Gross Unrealized Losses, Less than 12 Months | 248 | 11 |
Fair Value, 12 Months or More | 104 | 57 |
Gross Unrealized Losses, 12 Months or More | 18 | 4 |
Fair Value, Total | 3,572 | 771 |
Gross Unrealized Losses, Total | 266 | 15 |
Non-U.S. governments | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 7,062 | 4,644 |
Gross Unrealized Losses, Less than 12 Months | 377 | 115 |
Fair Value, 12 Months or More | 1,915 | 1,324 |
Gross Unrealized Losses, 12 Months or More | 294 | 132 |
Fair Value, Total | 8,977 | 5,968 |
Gross Unrealized Losses, Total | 671 | 247 |
Corporate debt | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 77,592 | 31,914 |
Gross Unrealized Losses, Less than 12 Months | 5,689 | 720 |
Fair Value, 12 Months or More | 10,362 | 8,819 |
Gross Unrealized Losses, 12 Months or More | 1,531 | 467 |
Fair Value, Total | 87,954 | 40,733 |
Gross Unrealized Losses, Total | 7,220 | 1,187 |
Residential mortgage-backed securities (RMBS) | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 9,499 | 5,362 |
Gross Unrealized Losses, Less than 12 Months | 475 | 102 |
Fair Value, 12 Months or More | 1,650 | 1,154 |
Gross Unrealized Losses, 12 Months or More | 137 | 46 |
Fair Value, Total | 11,149 | 6,516 |
Gross Unrealized Losses, Total | 612 | 148 |
Commercial mortgage-backed securities (CMBS) | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 9,615 | 3,980 |
Gross Unrealized Losses, Less than 12 Months | 423 | 63 |
Fair Value, 12 Months or More | 220 | 153 |
Gross Unrealized Losses, 12 Months or More | 28 | 16 |
Fair Value, Total | 9,835 | 4,133 |
Gross Unrealized Losses, Total | 451 | 79 |
Collateralized Debt Obligations/Asset-Backed Securities (CDO/ABS) | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Fair Value, Less than 12 Months | 15,337 | 8,263 |
Gross Unrealized Losses, Less than 12 Months | 512 | 112 |
Fair Value, 12 Months or More | 394 | 339 |
Gross Unrealized Losses, 12 Months or More | 22 | 11 |
Fair Value, Total | 15,731 | 8,602 |
Gross Unrealized Losses, Total | $ 534 | $ 123 |
INVESTMENTS (Details - Amorti_2
INVESTMENTS (Details - Amortized cost and fair value of fixed maturity securities available for sale by contractual maturity) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed Maturity Securities Available for Sale, Fair Value, Total | [1] | $ 257,219 | $ 277,202 |
Fixed maturity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Due in one year or less, Amortized Cost Net of Allowance | 7,577 | ||
Due after one year through five years, Amortized Cost Net of Allowance | 50,250 | ||
Due after five years through ten years, Amortized Cost Net of Allowance | 47,081 | ||
Due after ten years, Amortized Cost Net of Allowance | 95,294 | ||
Mortgage-backed, asset-backed and collateralized, Amortized Cost Net of Allowance | 59,087 | ||
Available for sale securities, Amortized Cost or Cost, Net of Allowance | 259,289 | ||
Due in one year or less, Fair Value | 7,574 | ||
Due after one year through five years, Fair Value | 49,857 | ||
Due after five years through ten years, Fair Value | 46,347 | ||
Due after ten years, Fair Value | 94,212 | ||
Mortgage-backed, asset-backed and collateralized, Fair Value | 59,229 | ||
Fixed Maturity Securities Available for Sale, Fair Value, Total | $ 257,219 | $ 277,202 | |
[1] | See Note 8 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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Aggregate fair value of available for sale securities sold | $ 4,800 | $ 6,400 |
Sales of fixed maturity securities | (139) | 389 |
Fortitude | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Sales of fixed maturity securities | (32) | 295 |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Realized Gains | 97 | 460 |
Gross Realized Losses | $ 236 | $ 71 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 7,277 | $ 7,017 |
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 | $ 6,582 | $ 6,278 |
Other Securities, Percent of Total | 89.00% | 89.00% |
Fixed maturity securities | U.S. government and government sponsored entities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 1,689 | $ 1,750 |
Other Securities, Percent of Total | 23.00% | 25.00% |
Fixed maturity securities | Obligations of states, municipalities and political subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 98 | $ 97 |
Other Securities, Percent of Total | 1.00% | 1.00% |
Fixed maturity securities | Non-U.S. governments | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 85 | $ 76 |
Other Securities, Percent of Total | 1.00% | 1.00% |
Fixed maturity securities | Corporate debt | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 1,341 | $ 1,050 |
Other Securities, Percent of Total | 18.00% | 15.00% |
Fixed maturity securities | Mortgage-backed, asset-backed and collateralized | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 3,369 | $ 3,305 |
Other Securities, Percent of Total | 46.00% | 47.00% |
Fixed maturity securities | Residential mortgage-backed securities (RMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 312 | $ 411 |
Other Securities, Percent of Total | 4.00% | 6.00% |
Fixed maturity securities | Commercial mortgage-backed securities (CMBS) | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 317 | $ 315 |
Other Securities, Percent of Total | 4.00% | 4.00% |
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 | $ 2,740 | $ 2,579 |
Other Securities, Percent of Total | 38.00% | 37.00% |
Equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Other Securities, Fair Value | $ 695 | $ 739 |
Other Securities, Percent of Total | 11.00% | 11.00% |
INVESTMENTS (Details - Carrying
INVESTMENTS (Details - Carrying amounts of other invested assets) - USD ($) $ in Millions | 3 Months Ended | 72 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2028 | Dec. 31, 2021 | ||
Investments [Line Items] | ||||
Other invested assets | [1] | $ 16,186 | $ 15,668 | |
Alternative investments | ||||
Investments [Line Items] | ||||
Other invested assets | 11,583 | 10,951 | ||
Investment real estate | ||||
Investments [Line Items] | ||||
Other invested assets | 2,627 | 2,727 | ||
Net of accumulated depreciation on investment in real estate | 802 | 778 | ||
All other investments | ||||
Investments [Line Items] | ||||
Other invested assets | 1,976 | 1,990 | ||
All other investments | Fortitude | ||||
Investments [Line Items] | ||||
Other invested assets | 156 | 100 | ||
Hedge Funds | ||||
Investments [Line Items] | ||||
Other invested assets | $ 1,800 | 2,000 | ||
Hedge Fund Fair Value Redemption, Additional Percentage | 67.00% | 33.00% | ||
Private equity funds | ||||
Investments [Line Items] | ||||
Other invested assets | $ 9,700 | $ 8,900 | ||
[1] | See Note 8 for details of balances associated with variable interest entities. |
INVESTMENTS (Details - Componen
INVESTMENTS (Details - Components of net investment income) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Investment Income [Line Items] | ||
Total investment income | $ 3,392 | $ 3,777 |
Investment expenses | 155 | 120 |
Net investment income | 3,237 | 3,657 |
Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 300 | 494 |
Investment expenses | 9 | 8 |
Net investment income | 291 | 486 |
Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | 3,092 | 3,283 |
Investment expenses | 146 | 112 |
Net investment income | 2,946 | 3,171 |
Fixed maturity securities, including short-term investments | ||
Net Investment Income [Line Items] | ||
Total investment income | 2,342 | 2,555 |
Fixed maturity securities, including short-term investments | Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 301 | 377 |
Fixed maturity securities, including short-term investments | Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | 2,041 | 2,178 |
Other fixed maturity securities | ||
Net Investment Income [Line Items] | ||
Total investment income | (319) | (102) |
Derivative Fair Value Hedge Included In Effectiveness Gain Loss | (95) | (81) |
Other fixed maturity securities | Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | (118) | 0 |
Other fixed maturity securities | Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | (201) | (102) |
Equity securities | ||
Net Investment Income [Line Items] | ||
Total investment income | (27) | 22 |
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 | (27) | 22 |
Interest on mortgage and other loans | ||
Net Investment Income [Line Items] | ||
Total investment income | 499 | 461 |
Interest on mortgage and other loans | Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 46 | 47 |
Interest on mortgage and other loans | Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | 453 | 414 |
Alternative investments | ||
Net Investment Income [Line Items] | ||
Total investment income | 740 | 641 |
Alternative investments | Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 71 | 69 |
Alternative investments | Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | 669 | 572 |
Real estate | ||
Net Investment Income [Line Items] | ||
Total investment income | 0 | 59 |
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 | 0 | 59 |
Other investments | ||
Net Investment Income [Line Items] | ||
Total investment income | 157 | 141 |
Derivative Fair Value Hedge Included In Effectiveness Gain Loss | 91 | 83 |
Other investments | Fortitude | ||
Net Investment Income [Line Items] | ||
Total investment income | 0 | 1 |
Other investments | Excluding Fortitude Re funds withheld assets | ||
Net Investment Income [Line Items] | ||
Total investment income | $ 157 | $ 140 |
INVESTMENTS (Details - Compon_2
INVESTMENTS (Details - Components of net realized gains (losses)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Gain (Loss) on Investments [Line Items] | ||
Sales of securities | $ (139) | $ 389 |
Change in allowance for credit losses on fixed maturity securities | (93) | 53 |
Change in allowance for credit losses on loans | (27) | 36 |
Foreign exchange transactions | (23) | (55) |
Variable annuity embedded derivatives, net of related hedges | 506 | 89 |
All other derivatives and hedge accounting | 883 | 234 |
Sales of alternative investments and real estate investments | 17 | 30 |
Other | (23) | 92 |
Total net realized gains (losses) | 4,419 | 3,250 |
Excluding Fortitude Re funds withheld assets | ||
Gain (Loss) on Investments [Line Items] | ||
Change in allowance for credit losses on fixed maturity securities | (53) | 51 |
Change in allowance for credit losses on loans | (19) | 41 |
Foreign exchange transactions | (14) | (49) |
Variable annuity embedded derivatives, net of related hedges | 506 | 89 |
All other derivatives and hedge accounting | 939 | 351 |
Other | (27) | 92 |
Total net realized gains (losses) | 1,241 | 695 |
Fortitude | ||
Gain (Loss) on Investments [Line Items] | ||
Sales of securities | (32) | 295 |
Change in allowance for credit losses on fixed maturity securities | (40) | 2 |
Change in allowance for credit losses on loans | (8) | (5) |
Foreign exchange transactions | (9) | (6) |
Variable annuity embedded derivatives, net of related hedges | 0 | 0 |
All other derivatives and hedge accounting | (56) | (117) |
Sales of alternative investments and real estate investments | 1 | 4 |
Other | 4 | 0 |
Total net realized gains (losses) | 3,178 | 2,555 |
Fixed maturity securities | ||
Gain (Loss) on Investments [Line Items] | ||
Sales of securities | (139) | 389 |
Fixed maturity securities | Excluding Fortitude Re funds withheld assets | ||
Gain (Loss) on Investments [Line Items] | ||
Sales of securities | (107) | 94 |
Fixed maturity securities | Fortitude | ||
Gain (Loss) on Investments [Line Items] | ||
Sales of securities | (32) | 295 |
Excluding modified coinsurance and funds withheld embedded derivative | ||
Gain (Loss) on Investments [Line Items] | ||
Sales of alternative investments and real estate investments | 16 | 26 |
Total net realized gains (losses) | 1,101 | 868 |
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) | 1,241 | 695 |
Excluding modified coinsurance and funds withheld embedded derivative | Fortitude | ||
Gain (Loss) on Investments [Line Items] | ||
Total net realized gains (losses) | (140) | 173 |
Fortitude Re funds withheld embedded derivative | ||
Gain (Loss) on Investments [Line Items] | ||
Total net realized gains (losses) | 3,318 | 2,382 |
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) | $ 3,318 | $ 2,382 |
INVESTMENTS (Details - Schedule
INVESTMENTS (Details - Schedule of increase (decrease) in unrealized appreciation (depreciation) of available for sale securities and other investments) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Change in unrealized appreciation (depreciation) of investments | $ (20,167) | $ (11,649) |
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 | 448 | 492 |
Less: Net gains (losses) recognized during the year on equity securities sold during the period | 91 | 3 |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | 357 | 489 |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Change in unrealized appreciation (depreciation) of investments | (20,160) | (11,649) |
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 | (27) | 22 |
Less: Net gains (losses) recognized during the year on equity securities sold during the period | 94 | (21) |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | (121) | 43 |
Other investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Change in unrealized appreciation (depreciation) of investments | (7) | 0 |
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 | 475 | 470 |
Less: Net gains (losses) recognized during the year on equity securities sold during the period | (3) | 24 |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | $ 478 | $ 446 |
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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of period | $ 98 | |
Securities for which allowance for credit losses were not previously recorded | 177 | $ 15 |
Securities sold during the period | (1) | (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 | (84) | (68) |
Write-offs charged against the allowance | 0 | (6) |
Other | 1 | 0 |
Securities available for sale, balance, end of period | 191 | 122 |
Adjusted balance | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of period | 186 | |
Structured | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of period | 8 | |
Securities for which allowance for credit losses were not previously recorded | 49 | 2 |
Securities sold during the period | 0 | (1) |
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 | (42) | (4) |
Write-offs charged against the allowance | 0 | 0 |
Other | 0 | 0 |
Securities available for sale, balance, end of period | 15 | 14 |
Structured | Adjusted balance | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of period | 17 | |
Non-structured | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of period | 90 | |
Securities for which allowance for credit losses were not previously recorded | 128 | 13 |
Securities sold during the period | (1) | (4) |
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 | (42) | (64) |
Write-offs charged against the allowance | 0 | (6) |
Other | 1 | 0 |
Securities available for sale, balance, end of period | $ 176 | 108 |
Non-structured | Adjusted balance | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, balance, beginning of period | $ 169 |
INVESTMENTS (Details - Schedu_2
INVESTMENTS (Details - Schedule of purchased credit impaired (PCI) securities) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost | $ 259,480 | $ 259,210 | |
Bonds available for sale | [1] | $ 257,219 | $ 277,202 |
[1] | See Note 8 for details of balances associated with variable interest entities. |
INVESTMENTS (Details - Pledged
INVESTMENTS (Details - Pledged investments) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments [Line Items] | ||
Fair value of securities collateral pledged | $ 530 | $ 1,839 |
Securities Lending Agreements, Fair Value of Collateral | 2,959 | 3,324 |
Bonds available for sale and short-term investments held in escrow | 530 | 514 |
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements | 12,600 | 13,500 |
Asset Pledged As Collateral [Member] | Federal Home Loan Bank Advances [Member] | ||
Investments [Line Items] | ||
Fair value of fixed maturities securities available for sale | 5,000 | 5,100 |
Loans receivable | 1,500 | 1,500 |
Overnight and continuous | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
Up to 30 Days | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 2,381 | 534 |
31 to 90 Days | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 578 | 2,790 |
91 to 364 Days | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
365 Days or Greater | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | 0 |
FHLBs | ||
Investments [Line Items] | ||
Amount owned by subsidiaries | 212 | 211 |
Secured financing | ||
Investments [Line Items] | ||
Amounts Borrowed Under Repurchase and Securities Lending Agreements | 3,600 | 3,700 |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 349 | 259 |
Amounts Loaned under Reverse Repurchase Agreements | 500 | 1,900 |
Secured financing | Fixed Maturities [Member] | ||
Investments [Line Items] | ||
Fair value of fixed maturities securities available for sale | 3,277 | 3,583 |
Fair value of other bond securities | 0 | 31 |
Secured financing | Overnight and continuous | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 276 | 176 |
Secured financing | Up to 30 Days | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 73 | 61 |
Secured financing | 31 to 90 Days | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 0 | 22 |
Secured financing | 91 to 364 Days | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, 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 |
Secured financing | Bonds available for sale | Obligations of states, municipalities and political subdivisions | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 149 | 106 |
Secured financing | Bonds available for sale | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 64 | 48 |
Securities Lending Agreements, Fair Value of Collateral | 500 | 43 |
Secured financing | Bonds available for sale | Corporate debt | ||
Investments [Line Items] | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 285 | 211 |
Securities Lending Agreements, Fair Value of Collateral | 2,281 | 3,175 |
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 | 64 | 48 |
Securities Lending Agreements, Fair Value of Collateral | 0 | 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 | 212 | 128 |
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 | 149 | 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 | 420 | 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 | 73 | 61 |
Securities Lending Agreements, Fair Value of Collateral | 1,812 | 534 |
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 | 0 | 106 |
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 | 80 | 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 | 0 | 22 |
Securities Lending Agreements, Fair Value of Collateral | 469 | 2,641 |
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 | 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 | 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 |
Secured financing | Other bond securities | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 9 | |
Secured financing | Other bond securities | Corporate debt | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 20 | |
Secured financing | Other bond securities | Overnight and continuous | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | Overnight and continuous | Corporate debt | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | Up to 30 Days | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | Up to 30 Days | Corporate debt | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | 31 to 90 Days | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 9 | |
Secured financing | Other bond securities | 31 to 90 Days | Corporate debt | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 20 | |
Secured financing | Other bond securities | 91 to 364 Days | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | 91 to 364 Days | Corporate debt | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | 365 Days or Greater | Non-U.S. governments | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
Secured financing | Other bond securities | 365 Days or Greater | Corporate debt | ||
Investments [Line Items] | ||
Securities Lending Agreements, Fair Value of Collateral | 0 | |
GIAs | ||
Investments [Line Items] | ||
Fair value of other bond securities | $ 1,500 | $ 1,400 |
LENDING ACTIVITIES (Details - C
LENDING ACTIVITIES (Details - Composition of mortgages and other loans receivable) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | $ 48,087 | $ 46,677 | |||
Allowance for credit losses | (617) | (629) | $ (787) | $ (814) | |
Mortgage and other loans receivable, net | [1] | 47,470 | 46,048 | ||
Commercial mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | 36,103 | 35,665 | |||
Allowance for credit losses | (533) | (545) | (662) | $ (685) | |
Loans on nonacrrual status | 210 | 226 | |||
Accrued interest receivable | 127 | 126 | |||
Off-balance-sheet commitments | $ 106 | $ 71 | $ 70 | ||
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 | 19.00% | 21.00% | |||
Residential mortgages | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | $ 5,666 | $ 5,492 | |||
Loans on nonacrrual status | 12 | 7 | |||
Accrued interest receivable | 13 | 12 | |||
Life insurance policy loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | 1,816 | 1,843 | |||
Commercial loans, other loans and notes receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total mortgage and other loans receivable | 4,502 | 3,677 | |||
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 | $ 105 | $ 15 | |||
[1] | See Note 8 for details of balances associated with variable interest entities. |
LENDING ACTIVITIES (Details -_2
LENDING ACTIVITIES (Details - Credit quality of commercial mortgages) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | $ 48,087 | $ 46,677 |
Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 1,594 | 2,820 |
Year prior | 2,915 | 2,708 |
Two years prior | 2,728 | 5,897 |
Three years prior | 5,738 | 5,989 |
Four years prior | 5,925 | 3,734 |
Five years prior | 17,203 | 14,517 |
Mortgage and other loans receivable, net | 36,103 | 35,665 |
Less than 65% | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 1,070 | 2,286 |
Year prior | 2,337 | 2,272 |
Two years prior | 2,276 | 4,149 |
Three years prior | 4,027 | 4,815 |
Four years prior | 4,756 | 2,892 |
Five years prior | 12,095 | 9,902 |
Mortgage and other loans receivable, net | 26,561 | 26,316 |
65% to 75% | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 524 | 372 |
Year prior | 371 | 410 |
Two years prior | 426 | 1,748 |
Three years prior | 1,711 | 1,174 |
Four years prior | 1,139 | 406 |
Five years prior | 3,503 | 3,490 |
Mortgage and other loans receivable, net | 7,674 | 7,600 |
76% to 80% | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 0 |
Year prior | 206 | 0 |
Two years prior | 0 | 0 |
Three years prior | 0 | 0 |
Four years prior | 30 | 188 |
Five years prior | 470 | 274 |
Mortgage and other loans receivable, net | 706 | 462 |
Greater than 80% | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 162 |
Year prior | 1 | 26 |
Two years prior | 26 | 0 |
Three years prior | 0 | 0 |
Four years prior | 0 | 248 |
Five years prior | 1,135 | 851 |
Mortgage and other loans receivable, net | 1,162 | 1,287 |
Greater than 1.2x | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 1,573 | 2,245 |
Year prior | 2,294 | 1,662 |
Two years prior | 1,667 | 5,126 |
Three years prior | 5,061 | 3,926 |
Four years prior | 3,882 | 3,557 |
Five years prior | 13,760 | 10,796 |
Mortgage and other loans receivable, net | 28,237 | 27,312 |
1.00X - 1.20X | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 21 | 574 |
Year prior | 620 | 1,019 |
Two years prior | 1,036 | 700 |
Three years prior | 606 | 1,138 |
Four years prior | 1,403 | 136 |
Five years prior | 2,170 | 1,929 |
Mortgage and other loans receivable, net | 5,856 | 5,496 |
Less than 1.00X | Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 1 |
Year prior | 1 | 27 |
Two years prior | 25 | 71 |
Three years prior | 71 | 925 |
Four years prior | 640 | 41 |
Five years prior | 1,273 | 1,792 |
Mortgage and other loans receivable, net | $ 2,010 | $ 2,857 |
LENDING ACTIVITIES (Details -_3
LENDING ACTIVITIES (Details - Credit quality performance indicators for commercial mortgages) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022USD ($)loan | Dec. 31, 2021USD ($)loan | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Allowance for credit losses | $ 617 | $ 629 | $ 787 | $ 814 |
Debt Coverage Ratio | 2 | 1.9 | ||
Average Loan to Value Ratio | 57.00% | 57.00% | ||
Apartments | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | $ 13,760 | $ 14,267 | ||
Allowance for credit losses | 101 | 109 | ||
Apartments | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 13,760 | 14,267 | ||
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 | ||
Offices | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 10,012 | 10,130 | ||
Allowance for credit losses | 227 | 247 | ||
Offices | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 9,592 | 9,695 | ||
Offices | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 353 | 354 | ||
Offices | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Offices | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 67 | 81 | ||
Retail | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 5,136 | 4,857 | ||
Allowance for credit losses | 106 | 103 | ||
Retail | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 4,945 | 4,778 | ||
Retail | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 140 | 25 | ||
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 | 51 | 54 | ||
Industrial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 4,554 | 3,858 | ||
Allowance for credit losses | 56 | 47 | ||
Industrial | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 4,554 | 3,858 | ||
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 | ||
Hotel | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 2,221 | 2,121 | ||
Allowance for credit losses | 33 | 31 | ||
Hotel | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 2,084 | 1,985 | ||
Hotel | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 137 | 136 | ||
Hotel | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Hotel | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Others | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 420 | 432 | ||
Allowance for credit losses | 10 | 8 | ||
Others | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 420 | 432 | ||
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 | ||
Commercial mortgages | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Number of loans in good standing | loan | 627 | 636 | ||
Number of loans restructured | loan | 10 | 8 | ||
Number of loans 90 days or less delinquent | loan | 0 | 0 | ||
Number of loans greater than 90 days delinquent or in process of foreclosure | loan | 3 | 5 | ||
Number of Loans | loan | 640 | 649 | ||
Loans receivable | $ 36,103 | $ 35,665 | ||
Allowance for credit losses | $ 533 | $ 545 | ||
Percentage of loans that are current as to payments of principal and interest | 98.00% | 98.00% | ||
Percentage restructured | 2.00% | 2.00% | ||
Percentage 90 days or less delinquent | 0.00% | 0.00% | ||
Percentage greater than 90 days delinquent or in foreclosure | 0.00% | 0.00% | ||
Percentage Total | 100.00% | 100.00% | ||
Percentage of loans with allowance for losses | 1.00% | 2.00% | ||
Commercial mortgages | In good standing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | $ 35,355 | $ 35,015 | ||
Commercial mortgages | Restructured | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 630 | 515 | ||
Commercial mortgages | 90 days or less delinquent | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | 0 | 0 | ||
Commercial mortgages | >90 days delinquent or in process of foreclosure | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Loans receivable | $ 118 | $ 135 |
LENDING ACTIVITIES (Details -_4
LENDING ACTIVITIES (Details - Credit quality of residential mortgages by year of vintage) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | $ 184 | $ 2,956 |
Year prior | 3,158 | 964 |
Two years prior | 904 | 408 |
Three years prior | 362 | 167 |
Four years prior | 142 | 274 |
Five years prior | 916 | 723 |
Mortgage and other loans receivable, net | 5,666 | 5,492 |
780 and greater | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 93 | 1,601 |
Year prior | 2,307 | 691 |
Two years prior | 693 | 297 |
Three years prior | 255 | 107 |
Four years prior | 95 | 192 |
Five years prior | 631 | 501 |
780 and greater | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | 4,074 | 3,389 |
720 - 779 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 90 | 1,306 |
Year prior | 763 | 230 |
Two years prior | 179 | 86 |
Three years prior | 85 | 44 |
Four years prior | 34 | 58 |
Five years prior | 191 | 154 |
720 - 779 | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | 1,342 | 1,878 |
660 - 719 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 1 | 48 |
Year prior | 84 | 42 |
Two years prior | 30 | 22 |
Three years prior | 18 | 12 |
Four years prior | 11 | 20 |
Five years prior | 69 | 49 |
660 - 719 | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | 213 | 193 |
600 - 659 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 1 |
Year prior | 4 | 1 |
Two years prior | 2 | 2 |
Three years prior | 3 | 3 |
Four years prior | 2 | 2 |
Five years prior | 17 | 12 |
600 - 659 | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | 28 | 21 |
Less than 600 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current year | 0 | 0 |
Year prior | 0 | 0 |
Two years prior | 0 | 1 |
Three years prior | 1 | 1 |
Four years prior | 0 | 2 |
Five years prior | 8 | 7 |
Less than 600 | Residential mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Mortgage and other loans receivable, net | $ 9 | $ 11 |
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 | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Mortgage and other loan receivables, balance, beginning of year | $ 629 | $ 814 | |
Loans charged off | (4) | 0 | |
Net charge-offs | (4) | 0 | |
Addition to (release of) allowance for loan losses | (8) | (27) | |
Mortgage and other loan receivables, balance, end of period | 617 | 787 | |
Loans modified in a troubled debt restructuring | 115 | 46 | |
Commercial mortgages | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Mortgage and other loan receivables, balance, beginning of year | 545 | 685 | |
Loans charged off | (4) | 0 | |
Net charge-offs | (4) | 0 | |
Addition to (release of) allowance for loan losses | (8) | (23) | |
Mortgage and other loan receivables, balance, end of period | 533 | 662 | |
Off-balance-sheet commitments | 106 | 70 | $ 71 |
Other Loans | |||
Changes in the allowance for losses on Mortgage and other loans receivable | |||
Mortgage and other loan receivables, balance, beginning of year | 84 | 129 | |
Loans charged off | 0 | 0 | |
Net charge-offs | 0 | 0 | |
Addition to (release of) allowance for loan losses | 0 | (4) | |
Mortgage and other loan receivables, balance, end of period | $ 84 | $ 125 |
REINSURANCE (Details - Summary
REINSURANCE (Details - Summary of the composition of pool of assets) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | ||
Effects of Reinsurance [Line Items] | ||||
Fixed maturity securities - available for sale, Carrying Value | [1] | $ 257,219 | $ 277,202 | |
Fixed maturity securities - fair value option, Carrying Value | [1] | 6,582 | 6,278 | |
Loans, Carrying Value | 48,087 | 46,677 | ||
Investments, Carrying Value | [1] | 16,186 | 15,668 | |
Short-term investments, Carrying Value | [1] | 9,718 | 13,357 | |
Derivative assets, net, Carrying Value | 656 | 843 | ||
Other, Carrying Value | [1] | 13,205 | 14,351 | |
Fixed maturity securities - available for sale, Fair Value | [1] | 257,219 | 277,202 | |
Fixed maturity securities - fair value option, Fair Value | [1] | 6,582 | 6,278 | |
Investments, Fair Value | 11,687 | 10,504 | ||
Derivative assets, net, Fair Value | 5,828 | 5,761 | ||
Commercial mortgages | ||||
Effects of Reinsurance [Line Items] | ||||
Loans, Carrying Value | 36,103 | 35,665 | ||
Fortitude Holdings | ||||
Effects of Reinsurance [Line Items] | ||||
Fixed maturity securities - available for sale, Carrying Value | 26,513 | 31,815 | ||
Fixed maturity securities - fair value option, Carrying Value | 2,711 | 1,983 | ||
Short-term investments, Carrying Value | 81 | 50 | ||
Funds withheld investment assets, Carrying Value | 35,469 | 39,672 | ||
Derivative assets, net, Carrying Value | 72 | 81 | ||
Other, Carrying Value | 653 | 602 | ||
Total, Carrying Value | 36,194 | 40,355 | ||
Fixed maturity securities - available for sale, Fair Value | 26,513 | 31,815 | ||
Fixed maturity securities - fair value option, Fair Value | 2,711 | 1,983 | ||
Short-term investments, Fair Value | 81 | 50 | ||
Funds withheld investment assets, Fair Value | 35,756 | 40,088 | ||
Derivative assets, net, Fair Value | 72 | 81 | ||
Other, Fair Value | 653 | 602 | ||
Total | 36,481 | 40,771 | ||
Change in net unrealized gains (losses), gross | (3,300) | $ (2,900) | ||
Change in net unrealized gains (losses), net of tax | (2,600) | $ (2,300) | ||
Derivative asset, Fair value of collateral | 349 | 389 | ||
Derivative liability, Fair value of collateral | 16 | 10 | ||
Fortitude Holdings | Real Estate Funds | ||||
Effects of Reinsurance [Line Items] | ||||
Investments, Carrying Value | 178 | 201 | ||
Investments, Fair Value | 414 | 395 | ||
Fortitude Holdings | Private equity funds / hedge funds | ||||
Effects of Reinsurance [Line Items] | ||||
Investments, Carrying Value | 1,724 | 1,606 | ||
Investments, Fair Value | 1,724 | 1,606 | ||
Fortitude Holdings | Policy Loans | ||||
Effects of Reinsurance [Line Items] | ||||
Loans, Carrying Value | 373 | 380 | ||
Loans, Fair Value | 373 | 380 | ||
Fortitude Holdings | Commercial mortgages | ||||
Effects of Reinsurance [Line Items] | ||||
Loans, Carrying Value | 3,889 | 3,637 | ||
Loans, Fair Value | $ 3,940 | $ 3,859 | ||
[1] | See Note 8 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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Effects of Reinsurance [Line Items] | ||
Net investment income | $ 3,237 | $ 3,657 |
Net realized gains (losses) | 4,419 | 3,250 |
Income from continuing operations before income tax expense | 5,835 | 4,728 |
Income tax expense | 1,179 | 798 |
Net income | $ 4,656 | $ 3,930 |
U.S. federal income tax at statutory rate (as a percent) | 21.00% | 21.00% |
Policyholder benefits and losses incurred | $ 5,255 | $ 5,139 |
Fortitude | ||
Effects of Reinsurance [Line Items] | ||
Net investment income | 291 | 486 |
Net realized gains (losses) | 3,178 | 2,555 |
Fortitude Re funds withheld assets | ||
Effects of Reinsurance [Line Items] | ||
Net investment income | 291 | 486 |
Net realized gains (losses) | (140) | 173 |
Fortitude Holdings | ||
Effects of Reinsurance [Line Items] | ||
Net underwriting income | 0 | 0 |
Net investment income | 291 | 486 |
Net realized gains (losses) | 3,178 | 2,555 |
Income from continuing operations before income tax expense | 3,469 | 3,041 |
Income tax expense | 728 | 639 |
Net income | 2,741 | 2,402 |
Change in unrealized depreciation of all other investments | (2,638) | (2,340) |
Comprehensive income | 103 | 62 |
Fortitude Holdings | Fortitude Re funds withheld assets | ||
Effects of Reinsurance [Line Items] | ||
Net realized gains (losses) | (140) | 173 |
Fortitude Holdings | Fortitude Re funds withheld assets | Embedded derivatives | ||
Effects of Reinsurance [Line Items] | ||
Net realized gains (losses) | $ 3,318 | $ 2,382 |
REINSURANCE (Details - Rollforw
REINSURANCE (Details - Rollforward of the reinsurance recoverable allowance for credit losses) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, balance, beginning of year | $ 382 | $ 375 |
Addition to (release of) allowance for expected credit losses and disputes, net | 9 | 5 |
Write-offs charged against the allowance for credit losses and disputes | (2) | (4) |
Other changes | 2 | 2 |
Reinsurance recoverables, balance, end of period | 391 | 378 |
General Insurance | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, balance, beginning of year | 281 | 292 |
Addition to (release of) allowance for expected credit losses and disputes, net | 5 | 1 |
Write-offs charged against the allowance for credit losses and disputes | (2) | (4) |
Other changes | 2 | 2 |
Reinsurance recoverables, balance, end of period | 286 | 291 |
Life and Retirement | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, balance, beginning of year | 101 | 83 |
Addition to (release of) allowance for expected credit losses and disputes, net | 4 | 4 |
Write-offs charged against the allowance for credit losses and disputes | 0 | 0 |
Other changes | 0 | 0 |
Reinsurance recoverables, balance, end of period | $ 105 | $ 87 |
REINSURANCE (Details - Narrativ
REINSURANCE (Details - Narrative) - USD ($) $ in Billions | Mar. 31, 2022 | Dec. 31, 2021 |
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables | $ 77.7 | $ 76.3 |
Investment Grade | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, percent | 93.00% | 92.00% |
Non-Investment Grade | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, percent | 6.00% | 7.00% |
Non-Investment Grade | Captive Insurers | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, percent | 71.00% | 71.00% |
Not Rated | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, percent | 1.00% | 1.00% |
General Insurance | Investment Grade | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, percent | 53.00% | 52.00% |
Life and Retirement | Investment Grade | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, percent | 40.00% | 40.00% |
Life and Retirement | Non-Investment Grade | Maximum | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, percent | 1.00% | 1.00% |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |||
Assets: | ||||||
Bonds available for sale | [1] | $ 257,219 | $ 277,202 | |||
Other bond securities | [1] | 6,582 | 6,278 | |||
Equity securities | [1] | 695 | 739 | |||
Mortgage and other loans receivable | [1] | 47,470 | 46,048 | |||
Other invested assets | [1] | 16,186 | 15,668 | |||
Short-term investments | [1] | 9,718 | 13,357 | |||
Accrued investment income | [1] | 2,272 | 2,239 | |||
Cash | 2,537 | [1] | 2,198 | [1] | $ 2,796 | |
Other | [1] | 13,205 | 14,351 | |||
Total assets | 573,513 | 596,112 | ||||
Liabilities: | ||||||
Total liabilities | 515,410 | 527,200 | ||||
Debt of consolidated investments | ||||||
Liabilities: | ||||||
Long-term debt | [1] | 6,366 | 6,422 | |||
Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 11,583 | 10,951 | ||||
Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 2,627 | 2,727 | ||||
Real Estate and Investment Entities | ||||||
Liabilities: | ||||||
Off-balance sheet exposure | 2,000 | 2,200 | ||||
Real Estate and Investment Entities | External | ||||||
Liabilities: | ||||||
Off-balance sheet exposure | 500 | 600 | ||||
Consolidated VIE | ||||||
Assets: | ||||||
Bonds available for sale | 5,581 | 5,543 | ||||
Other bond securities | 1,648 | 1,852 | ||||
Equity securities | 69 | 223 | ||||
Mortgage and other loans receivable | 2,352 | 2,523 | ||||
Short-term investments | 373 | 638 | ||||
Accrued investment income | 17 | 17 | ||||
Cash | 82 | 96 | ||||
Other assets | 232 | 748 | ||||
Total assets | 15,792 | 16,914 | ||||
Liabilities: | ||||||
Long-term debt | 6,192 | 6,247 | ||||
Other liabilities | 229 | 844 | ||||
Total liabilities | 6,421 | 7,091 | ||||
Consolidated VIE | Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 3,247 | 3,017 | ||||
Consolidated VIE | Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 2,191 | 2,257 | ||||
Consolidated VIE | Real Estate and Investment Entities | ||||||
Assets: | ||||||
Bonds available for sale | 0 | 0 | ||||
Other bond securities | 0 | 0 | ||||
Equity securities | 69 | 223 | ||||
Mortgage and other loans receivable | 0 | 0 | ||||
Short-term investments | 243 | 487 | ||||
Accrued investment income | 0 | 0 | ||||
Cash | 82 | 96 | ||||
Other assets | 173 | 190 | ||||
Total assets | 6,005 | 6,270 | ||||
Liabilities: | ||||||
Long-term debt | 1,694 | 1,743 | ||||
Other liabilities | 112 | 122 | ||||
Total liabilities | 1,806 | 1,865 | ||||
Consolidated VIE | Real Estate and Investment Entities | Alternative investments | ||||||
Assets: | ||||||
Other invested assets | 3,247 | 3,017 | ||||
Consolidated VIE | Real Estate and Investment Entities | Investment real estate | ||||||
Assets: | ||||||
Other invested assets | 2,191 | 2,257 | ||||
Consolidated VIE | Securitization Vehicles | ||||||
Assets: | ||||||
Bonds available for sale | 5,581 | 5,543 | ||||
Other bond securities | 1,648 | 1,852 | ||||
Equity securities | 0 | 0 | ||||
Mortgage and other loans receivable | 2,352 | 2,523 | ||||
Short-term investments | 130 | 151 | ||||
Accrued investment income | 17 | 17 | ||||
Cash | 0 | 0 | ||||
Other assets | 59 | 558 | ||||
Total assets | 9,787 | 10,644 | ||||
Liabilities: | ||||||
Long-term debt | 4,498 | 4,504 | ||||
Other liabilities | 117 | 722 | ||||
Total liabilities | 4,615 | 5,226 | ||||
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 | ||||
Unconsolidated VIE | ||||||
Assets: | ||||||
Other invested assets | 8,200 | 7,800 | ||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Total VIE Assets | 463,572 | 459,073 | ||||
Maximum Exposure to Loss, On-Balance Sheet | 8,269 | 7,887 | ||||
Maximum Exposure to Loss, Off-Balance Sheet | 4,366 | 3,976 | ||||
Total maximum exposure to loss | 12,635 | 11,863 | ||||
Unconsolidated VIE | Real Estate and Investment Entities | ||||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Total VIE Assets | 461,827 | 457,335 | ||||
Maximum Exposure to Loss, On-Balance Sheet | 8,021 | 7,650 | ||||
Maximum Exposure to Loss, Off-Balance Sheet | 3,617 | 3,448 | ||||
Total maximum exposure to loss | 11,638 | 11,098 | ||||
Unconsolidated VIE | Other | ||||||
Total assets of unconsolidated VIEs as well as maximum exposure to loss | ||||||
Total VIE Assets | 1,745 | 1,738 | ||||
Maximum Exposure to Loss, On-Balance Sheet | 248 | 237 | ||||
Maximum Exposure to Loss, Off-Balance Sheet | 749 | 528 | ||||
Total maximum exposure to loss | $ 997 | $ 765 | ||||
[1] | See Note 8 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 ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | $ 144,121,000,000 | $ 136,508,000,000 |
Gross Derivative Assets, Fair Value | 5,828,000,000 | 5,761,000,000 |
Gross Derivative Liabilities, Notional Amount | 70,031,000,000 | 65,130,000,000 |
Gross Derivative Liabilities, Fair Value | 5,169,000,000 | 4,454,000,000 |
Derivative assets, Counterparty netting | (3,295,000,000) | (2,779,000,000) |
Derivative assets, Cash collateral | (1,877,000,000) | (2,139,000,000) |
Total derivative assets on consolidated balance sheet | 656,000,000 | 843,000,000 |
Derivative liabilities, Counterparty netting | (3,295,000,000) | (2,779,000,000) |
Derivative liabilities, Cash collateral | (1,478,000,000) | (1,089,000,000) |
Total derivative liabilities on consolidated balance sheet | 396,000,000 | 586,000,000 |
Bifurcated embedded derivatives | ||
Derivative [Line Items] | ||
Bifurcated embedded derivatives assets, fair value | 0 | 0 |
Bifurcated embedded derivative liabilities, fair value | 10,300,000,000 | 14,500,000,000 |
Derivatives designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 242,000,000 | 265,000,000 |
Gross Derivative Assets, Fair Value | 3,000,000 | 5,000,000 |
Gross Derivative Liabilities, Notional Amount | 918,000,000 | 895,000,000 |
Gross Derivative Liabilities, Fair Value | 28,000,000 | 11,000,000 |
Derivatives designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 7,522,000,000 | 5,431,000,000 |
Gross Derivative Assets, Fair Value | 571,000,000 | 467,000,000 |
Gross Derivative Liabilities, Notional Amount | 3,276,000,000 | 5,828,000,000 |
Gross Derivative Liabilities, Fair Value | 195,000,000 | 197,000,000 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 51,215,000,000 | 47,499,000,000 |
Gross Derivative Assets, Fair Value | 4,000,000,000 | 3,868,000,000 |
Gross Derivative Liabilities, Notional Amount | 53,844,000,000 | 42,113,000,000 |
Gross Derivative Liabilities, Fair Value | 4,376,000,000 | 3,622,000,000 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 11,132,000,000 | 7,905,000,000 |
Gross Derivative Assets, Fair Value | 833,000,000 | 722,000,000 |
Gross Derivative Liabilities, Notional Amount | 6,672,000,000 | 9,997,000,000 |
Gross Derivative Liabilities, Fair Value | 470,000,000 | 524,000,000 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 26,873,000,000 | 27,423,000,000 |
Gross Derivative Assets, Fair Value | 403,000,000 | 681,000,000 |
Gross Derivative Liabilities, Notional Amount | 4,250,000,000 | 5,091,000,000 |
Gross Derivative Liabilities, Fair Value | 55,000,000 | 53,000,000 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 196,000,000 | 303,000,000 |
Gross Derivative Assets, Fair Value | 3,000,000 | 4,000,000 |
Gross Derivative Liabilities, Notional Amount | 138,000,000 | 219,000,000 |
Gross Derivative Liabilities, Fair Value | 0 | 0 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 2,789,000,000 | 3,790,000,000 |
Gross Derivative Assets, Fair Value | 1,000,000 | 1,000,000 |
Gross Derivative Liabilities, Notional Amount | 933,000,000 | 936,000,000 |
Gross Derivative Liabilities, Fair Value | 45,000,000 | 47,000,000 |
Derivatives not designated as hedging instruments | Credit contracts | CDS | ||
Derivative [Line Items] | ||
Gross Derivative Liabilities, Notional Amount | 94,000,000 | 97,000,000 |
Gross Derivative Liabilities, Fair Value | 31,000,000 | 30,000,000 |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative [Line Items] | ||
Gross Derivative Assets, Notional Amount | 44,152,000,000 | 43,892,000,000 |
Gross Derivative Assets, Fair Value | 14,000,000 | 13,000,000 |
Gross Derivative Liabilities, Notional Amount | 0 | 51,000,000 |
Gross Derivative Liabilities, Fair Value | $ 0 | $ 0 |
DERIVATIVES AND HEDGE ACCOUNT_4
DERIVATIVES AND HEDGE ACCOUNTING (Details - Fair values of derivative assets and liabilities) - USD ($) $ in Billions | Mar. 31, 2022 | Dec. 31, 2021 |
Collateral | ||
Collateral posted to third parties for derivative transactions | $ 2.6 | $ 2.7 |
Collateral obtained from third parties for derivative transactions | $ 2 | $ 2.4 |
DERIVATIVES AND HEDGE ACCOUNT_5
DERIVATIVES AND HEDGE ACCOUNTING (Details - Hedge Accounting) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships | $ 87 | $ 101 |
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 | 3,262 | 2,265 |
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 | (21) | (4) |
Gain (loss) recognized in earnings on hedged items | 23 | 6 |
Gains/(losses) recognized in earnings for excluded components | 0 | 0 |
Net Impact | 2 | 2 |
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 | 1 | 8 |
Gain (loss) recognized in earnings on hedged items | (1) | (7) |
Gains/(losses) recognized in earnings for excluded components | 0 | 0 |
Net Impact | 0 | 1 |
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 | 109 | 32 |
Gain (loss) recognized in earnings on hedged items | (109) | (32) |
Gains/(losses) recognized in earnings for excluded components | 42 | (29) |
Net Impact | 42 | (29) |
Derivatives not designated as hedging instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | 4,717 | 2,698 |
Derivatives not designated as hedging instruments | Net realized gains (losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | 1,448 | 440 |
Derivatives not designated as hedging instruments | Net investment income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | (1) | (12) |
Derivatives not designated as hedging instruments | Policy fees | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | 15 | 15 |
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 | (7) | (10) |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | (613) | (1,545) |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | 236 | (87) |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | (204) | (519) |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | (4) | 0 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | (1) | (5) |
Derivatives not designated as hedging instruments | Other contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | 18 | 15 |
Derivatives not designated as hedging instruments | Embedded derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses) recognized in earnings on hedging derivatives | $ 5,285 | $ 4,839 |
DERIVATIVES AND HEDGE ACCOUNT_6
DERIVATIVES AND HEDGE ACCOUNTING (Details - Additional Information) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Credit Derivatives [Line Items] | ||
Collateral posted | $ 2,600 | $ 2,700 |
Fair value of hybrid securities | 1,800 | 2,000 |
Par value of hybrid securities | 4,500 | 4,600 |
Credit Risk Related Contingent Features [Member] | ||
Credit Derivatives [Line Items] | ||
Collateral posted | 163 | 239 |
Aggregate fair value of net liability position | 142 | $ 206 |
Additional collateral postings and termination payments | $ 26 |
INSURANCE LIABILITIES (Details
INSURANCE LIABILITIES (Details - Liability for Unpaid Losses and Loss Adjustment Expenses) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Jan. 20, 2017 | |
Supplementary Insurance Information, by Segment [Line Items] | ||||
Contractual deductible recoverable amount | $ 12,300 | $ 12,300 | ||
Collateral Held For Deductible Recoverable Amounts | 8,500 | 8,600 | ||
Allowance for credit losses for unsecured reinsurance recoverable | 14 | $ 14 | ||
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense: | ||||
Liability for unpaid loss and loss adjustment expenses, beginning of period | 79,026 | $ 77,720 | ||
Reinsurance recoverable, balance at the beginning of the period | (35,213) | (34,431) | ||
Net Liability for unpaid loss and loss adjustment expenses, beginning of period | 43,813 | 43,289 | ||
Losses and loss adjustment expenses incurred | ||||
Current year | 3,882 | 3,925 | ||
Prior years, excluding discount and amortization of deferred gain | (51) | 16 | ||
Prior years, discount charge (benefit) | 4 | (18) | ||
Prior years, amortization of deferred gain on retroactive reinsurance | (42) | (72) | ||
Total losses and loss adjustment expenses incurred | 3,793 | 3,851 | ||
Losses and loss adjustment expenses paid | ||||
Current year | (323) | (328) | ||
Prior years | (3,442) | (3,584) | ||
Total losses and loss adjustment expenses paid | (3,765) | (3,912) | ||
Other changes: | ||||
Foreign exchange effect | 4 | 244 | ||
Retroactive reinsurance adjustment (net of discount) | 17 | 89 | ||
Total other changes | 21 | 333 | ||
Net liability for unpaid losses and loss adjustment expenses, end of period | 43,862 | 43,561 | ||
Reinsurance recoverable, balance at the end of the period | 34,321 | 35,271 | ||
Total, balance at the end of period | 78,183 | 78,832 | ||
Change in discount on loss reserves ceded under retroactive reinsurance | 39 | 39 | ||
U.S. Commercial long-tail exposures | NICO | Accident Years 2015 and Prior | ||||
Other changes: | ||||
Discount on retroactive reinsurance | $ 4 | $ 17 | ||
Risk Transferred - U.S. Commercial long-tail exposures for accident years 2015 and prior, percent | 80.00% | |||
Reinsurance Percent Ceded on Paid Losses Percent | 80.00% | |||
Ceded to NICO net paid losses in excess | $ 25,000 | |||
Ceded to NICO net paid losses in excess, aggregate limit | 25,000 | |||
NICO's limit of liability under the contract | 20,000 | |||
Consideration paid, including interest | $ 10,200 |
INSURANCE LIABILITIES (Detail_2
INSURANCE LIABILITIES (Details - Discounting of Reserves) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Discounting of Reserves [Line Items] | |||
Workers Compensation Tabular Discount Amount | $ 279 | $ 260 | |
Workers Compensation Non Tabular Discount Amount | 656 | 616 | |
U.S. Workers' compensation | 1,849 | 1,829 | |
Retroactive Reinsurance | (914) | (953) | |
Total reserve discount | 935 | 876 | |
Current accident year | 24 | $ 14 | |
Accretion and other adjustments to prior year discount | (4) | 18 | |
Net loss reserve discount benefit (charge) | 20 | 32 | |
Change in discount on loss reserves ceded under retroactive reinsurance | 39 | 39 | |
Net change in total reserve discount | $ 59 | 71 | |
Maximum [Member] | |||
Discounting of Reserves [Line Items] | |||
Tabular Discount Rate | 45.00% | ||
NICO [Member] | |||
Discounting of Reserves [Line Items] | |||
Amortization of deferred gain on retroactive reinsurance | $ 38 | 55 | |
Fortitude [Member] | |||
Discounting of Reserves [Line Items] | |||
Total reserve discount | $ 493 | $ 500 | |
Percent of discount ceded on sale | 100.00% | 100.00% | |
New York | |||
Discounting of Reserves [Line Items] | |||
Nontabular discount rate | 5.00% | ||
United Kingdom | |||
Discounting of Reserves [Line Items] | |||
Net loss reserve discount benefit (charge) | $ 118 | $ 116 | |
Net change in total reserve discount | $ (2) | $ (7) |
CONTINGENCIES, COMMITMENTS AN_2
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details - Contingencies, Commitments and Guarantees) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Future undiscounted cash flows under operating leases | ||
Other commitments | $ 7,100 | $ 7,300 |
Amount outstanding under standby letters of credit at end of period | 70 | |
Amount of policy issued to plaintiff's | $ 1 |
EQUITY (Details - Preferred Sto
EQUITY (Details - Preferred Stock) - USD ($) $ / shares in Units, $ in Millions | Feb. 16, 2022 | Feb. 16, 2021 | Mar. 14, 2019 | Mar. 31, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | |||||
Issuances (in shares) | 4,910,231 | ||||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 | |||
Preferred stock liquidation preference | $ 500 | $ 500 | |||
Date dividends declared | Feb. 16, 2022 | Feb. 16, 2021 | |||
Date of record | Mar. 17, 2022 | Mar. 16, 2021 | |||
Date dividends paid | Mar. 31, 2022 | Mar. 30, 2021 | |||
Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Issuances (in shares) | 20,000 | ||||
Preferred stock, dividend rate (as a percent) | 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 | Feb. 16, 2022 | Feb. 16, 2021 | |||
Date of record | Feb. 28, 2022 | Feb. 26, 2021 | |||
Date dividends paid | Mar. 15, 2022 | Mar. 15, 2021 | |||
Preferred Stock Dividends Per Share Cash Paid | $ 365.625 | $ 365.625 | |||
Series A Depositary Shares | |||||
Class of Stock [Line Items] | |||||
Issuances (in shares) | 20,000,000 | ||||
Preferred stock liquidation preference | $ 25 | ||||
Preferred Stock Dividends Per Share Cash Paid | $ 0.365625 | $ 0.365625 |
EQUITY (Details - Common Stock
EQUITY (Details - Common Stock and Dividends) - USD ($) $ / shares in Units, $ in Millions | Feb. 16, 2022 | Feb. 16, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
The following table presents a roll forward of outstanding shares: | ||||
Shares, beginning of year | (1,087,984,129) | |||
Shares, beginning of year | 1,906,671,492 | |||
Shares, beginning of year | 818,687,363 | |||
Shares issued | 4,910,231 | |||
Shares repurchased | (23,373,504) | (8,000,000) | ||
Shares, end of period | (1,106,447,402) | |||
Shares, end of period | 1,906,671,492 | |||
Shares, end of period | 800,224,090 | |||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | ||||
Date Dividends Declared | Feb. 16, 2022 | Feb. 16, 2021 | ||
Date of Shareholders of Record | Mar. 17, 2022 | Mar. 16, 2021 | ||
Date Dividends To Be Paid | Mar. 31, 2022 | Mar. 30, 2021 | ||
Dividend paid (in dollars per share) | $ 0.32 | $ 0.32 | ||
Aggregate repurchases of common stock | $ 1,403 | $ 362 | ||
Common Stock Issued | ||||
The following table presents a roll forward of outstanding shares: | ||||
Shares, beginning of year | 1,906,671,492 | |||
Shares issued | 0 | |||
Shares repurchased | 0 | |||
Shares, end of period | 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 | (1,087,984,129) | |||
Shares issued | 4,910,231 | |||
Shares repurchased | (23,373,504) | |||
Shares, end of period | (1,106,447,402) | |||
The following table presents record date, payment date and dividends paid per share on AIG Common Stock: | ||||
Aggregate repurchases of common stock | $ 1,403 | $ 362 |
EQUITY (Details - Rollforward o
EQUITY (Details - Rollforward of Accumulated other comprehensive income (loss)) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period, net of tax | $ 6,687 | $ 13,511 |
Change in unrealized appreciation (depreciation) of investments | (20,167) | (11,649) |
Change in deferred policy acquisition costs adjustment and other | 2,815 | 1,391 |
Change in future policy benefits | 1,183 | 1,145 |
Changes in foreign currency translation adjustments | (1) | 170 |
Change in net actuarial (gain) loss | 11 | (1) |
Change in prior service cost | 1 | 2 |
Change in deferred tax asset (liability) | 2,510 | 1,898 |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | 0 | (1) |
Total other comprehensive income (loss) | (13,648) | (7,045) |
Noncontrolling interests | (1,061) | 0 |
Balance, end of period, net of tax | (5,900) | 6,466 |
Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total other comprehensive income (loss) | (12,587) | (7,045) |
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 | (57) | (95) |
Change in unrealized appreciation (depreciation) of investments | (57) | 41 |
Change in deferred policy acquisition costs adjustment and other | 0 | (2) |
Change in future policy benefits | 0 | 0 |
Changes in foreign currency translation adjustments | 0 | 0 |
Change in net actuarial (gain) loss | 0 | 0 |
Change in prior service cost | 0 | 0 |
Change in deferred tax asset (liability) | 12 | (6) |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | 0 | 0 |
Total other comprehensive income (loss) | (45) | 33 |
Noncontrolling interests | (5) | 0 |
Balance, end of period, net of tax | (97) | (62) |
Unrealized Appreciation (Depreciation) of All Other Investments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period, net of tax | 10,094 | 17,093 |
Change in unrealized appreciation (depreciation) of investments | (20,110) | (11,690) |
Change in deferred policy acquisition costs adjustment and other | 2,815 | 1,393 |
Change in future policy benefits | 1,183 | 1,145 |
Changes in foreign currency translation adjustments | 0 | 0 |
Change in net actuarial (gain) loss | 0 | 0 |
Change in prior service cost | 0 | 0 |
Change in deferred tax asset (liability) | 2,505 | 1,953 |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | 0 | 0 |
Total other comprehensive income (loss) | (13,607) | (7,199) |
Noncontrolling interests | (1,076) | 0 |
Balance, end of period, net of tax | (2,437) | 9,894 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period, net of tax | (2,453) | (2,267) |
Change in unrealized appreciation (depreciation) of investments | 0 | 0 |
Change in deferred policy acquisition costs adjustment and other | 0 | 0 |
Change in future policy benefits | 0 | 0 |
Changes in foreign currency translation adjustments | (1) | 170 |
Change in net actuarial (gain) loss | 0 | 0 |
Change in prior service cost | 0 | 0 |
Change in deferred tax asset (liability) | (4) | (45) |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | 0 | 0 |
Total other comprehensive income (loss) | (5) | 125 |
Noncontrolling interests | 20 | 0 |
Balance, end of period, net of tax | (2,478) | (2,142) |
Retirement Plan Liabilities Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period, net of tax | (903) | (1,228) |
Change in unrealized appreciation (depreciation) of investments | 0 | 0 |
Change in deferred policy acquisition costs adjustment and other | 0 | 0 |
Change in future policy benefits | 0 | 0 |
Changes in foreign currency translation adjustments | 0 | 0 |
Change in net actuarial (gain) loss | 11 | (1) |
Change in prior service cost | 1 | 2 |
Change in deferred tax asset (liability) | (3) | (4) |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | 0 | 0 |
Total other comprehensive income (loss) | 9 | (3) |
Noncontrolling interests | 0 | 0 |
Balance, end of period, net of tax | (894) | (1,231) |
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 | 6 | 8 |
Change in unrealized appreciation (depreciation) of investments | 0 | 0 |
Change in deferred policy acquisition costs adjustment and other | 0 | 0 |
Change in future policy benefits | 0 | 0 |
Changes in foreign currency translation adjustments | 0 | 0 |
Change in net actuarial (gain) loss | 0 | 0 |
Change in prior service cost | 0 | 0 |
Change in deferred tax asset (liability) | 0 | 0 |
Change in fair value of liabilities under fair value option attributable to changes in own credit risk | 0 | (1) |
Total other comprehensive income (loss) | 0 | (1) |
Noncontrolling interests | 0 | 0 |
Balance, end of period, net of tax | $ 6 | $ 7 |
EQUITY (Details - Other compreh
EQUITY (Details - Other comprehensive income reclassification adjustments) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | $ (16,305) | $ (8,566) |
Less: Reclassification adjustments included in net income | (147) | 377 |
Total other comprehensive income (loss), before income tax expense (benefit) | (16,158) | (8,943) |
Less: Income tax expense (benefit) | (2,510) | (1,898) |
Other comprehensive loss | (13,648) | (7,045) |
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 | (57) | 37 |
Less: Reclassification adjustments included in net income | 0 | (2) |
Total other comprehensive income (loss), before income tax expense (benefit) | (57) | 39 |
Less: Income tax expense (benefit) | (12) | 6 |
Other comprehensive loss | (45) | 33 |
Unrealized Appreciation (Depreciation) of All Other Investments | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | (16,251) | (8,761) |
Less: Reclassification adjustments included in net income | (139) | 391 |
Total other comprehensive income (loss), before income tax expense (benefit) | (16,112) | (9,152) |
Less: Income tax expense (benefit) | (2,505) | (1,953) |
Other comprehensive loss | (13,607) | (7,199) |
Foreign Currency Translation Adjustments | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | (1) | 170 |
Less: Reclassification adjustments included in net income | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | (1) | 170 |
Less: Income tax expense (benefit) | 4 | 45 |
Other comprehensive loss | (5) | 125 |
Retirement Plan Liabilities Adjustment | ||
Other Comprehensive Income (Loss) Reclassification Adjustments | ||
Unrealized change arising during period | 4 | (11) |
Less: Reclassification adjustments included in net income | (8) | (12) |
Total other comprehensive income (loss), before income tax expense (benefit) | 12 | 1 |
Less: Income tax expense (benefit) | 3 | 4 |
Other comprehensive loss | 9 | (3) |
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 | 0 | (1) |
Less: Reclassification adjustments included in net income | 0 | 0 |
Total other comprehensive income (loss), before income tax expense (benefit) | 0 | (1) |
Less: Income tax expense (benefit) | 0 | 0 |
Other comprehensive loss | $ 0 | $ (1) |
EQUITY (Details - Reclassificat
EQUITY (Details - Reclassification of significant items out of Accumulated other comprehensive income) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized gains (losses) | $ 4,419 | $ 3,250 |
Total | (147) | 377 |
Income from continuing operations before income tax expense | 5,835 | 4,728 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income from continuing operations before income tax expense | (147) | 377 |
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 | (2) |
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 (losses) | 0 | (2) |
Total | 0 | (2) |
Unrealized appreciation (depreciation) of all other investments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | (139) | 391 |
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 (losses) | (139) | 391 |
Total | (139) | 391 |
Change in retirement plan liabilities adjustment | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | (8) | (12) |
Change in retirement plan liabilities adjustment | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | (8) | (12) |
Prior-Service Credit | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | (1) | (1) |
Actuarial Gains (Losses) | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total | $ (7) | $ (11) |
EQUITY (Details - Narratives)
EQUITY (Details - Narratives) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Equity Class Of Treasury Stock [Line Items] | ||
Payments for Repurchase of Stock | $ 1,394 | $ 362 |
Aggregate repurchases of common stock | $ 1,403 | 362 |
Exchange Act 10b5-1 Plan | ||
Equity Class Of Treasury Stock [Line Items] | ||
Proceeds from warrant exercises | $ 92 |
EARNINGS PER COMMON SHARE (EP_3
EARNINGS PER COMMON SHARE (EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator for EPS: | ||
Income from continuing operations | $ 4,656 | $ 3,930 |
Less: Net income (loss) from continuing operations attributable to noncontrolling interests | 396 | 54 |
Less: Preferred stock dividends | 7 | 7 |
Income (loss) attributable to AIG common shareholders from continuing operations | 4,253 | 3,869 |
Income from discontinued operations, net of income tax expense | 0 | 0 |
Net income attributable to AIG common shareholders | $ 4,253 | $ 3,869 |
Denominator for EPS: | ||
Weighted average common shares outstanding - basic | 816,314,273 | 868,105,069 |
Dilutive common shares | 9,698,337 | 8,164,855 |
Weighted average common shares outstanding - diluted | 826,012,610 | 876,269,924 |
Basic: | ||
Income from continuing operations | $ 5.21 | $ 4.45 |
Income from discontinued operations | 0 | 0 |
Income (loss) attributable to AIG common shareholders | 5.21 | 4.45 |
Diluted: | ||
Income from continuing operations | 5.15 | 4.41 |
Income from discontinued operations | 0 | 0 |
Income attributable to AIG common shareholders | $ 5.15 | $ 4.41 |
Number of shares excluded from diluted shares outstanding because the effect would have been anti-dilutive | 39,900,000 | 9,200,000 |
EMPLOYEE BENEFITS (Details - Co
EMPLOYEE BENEFITS (Details - Components of net periodic benefit cost) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pensions | ||
Components of net periodic benefit cost: | ||
Service cost | $ 6 | $ 6 |
Interest cost | 30 | 25 |
Expected return on assets | (58) | (67) |
Amortization of prior service cost (credit) | 1 | 1 |
Amortization of net (gain) loss | 8 | 11 |
Net periodic benefit cost (credit) | (13) | (24) |
Pensions | U.S. | ||
Components of net periodic benefit cost: | ||
Service cost | 1 | 1 |
Interest cost | 27 | 22 |
Expected return on assets | (53) | (61) |
Amortization of prior service cost (credit) | 0 | 0 |
Amortization of net (gain) loss | 7 | 9 |
Net periodic benefit cost (credit) | (18) | (29) |
Pensions | Non U.S. Plans | ||
Components of net periodic benefit cost: | ||
Service cost | 5 | 5 |
Interest cost | 3 | 3 |
Expected return on assets | (5) | (6) |
Amortization of prior service cost (credit) | 1 | 1 |
Amortization of net (gain) loss | 1 | 2 |
Net periodic benefit cost (credit) | 5 | 5 |
Postretirement Plans | ||
Components of net periodic benefit cost: | ||
Net benefit cost (credit) | $ 1 | $ 2 |
INCOME TAXES (Details - Narrati
INCOME TAXES (Details - Narrative) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Oct. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Line Items] | |||||
Effective tax rates on income from continuing operations (as a percent) | 20.20% | 16.90% | |||
U.S. federal income tax at statutory rate (as a percent) | 21.00% | 21.00% | |||
Valuation allowance related to certain tax attribute carryforward | $ 850 | ||||
Maximum statutory rate to offet income by non-operating loss | 35.00% | ||||
Unrecognized Tax Benefits | $ 1,200 | $ 1,200 | |||
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate | 1,100 | 1,100 | |||
Unrecognized tax benefits, if recognized would not affect the effective tax rate | 22 | 22 | |||
Decrease in unrecognized tax benefits is reasonably possible in the next twelve months | 11 | ||||
Unrecognized tax benefits, interest and penalties accrued | 69 | $ 69 | |||
Unrecognized tax benefits, interest net of the federal (benefit) expense and penalties | $ 183 | ||||
Deferred tax asset valuation allowance recognized related to certain state, local and foreign jurisdictions | 6 | ||||
Income tax examination, additional payment | $ 10 | $ 354 | |||
U.S. Life Insurance Companies [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Deferred tax asset valuation allowance recognized | 770 | ||||
Non-Life Insurance Companies [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Deferred tax asset valuation allowance recognized | $ 170 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, € in Millions | May 10, 2022EUR (€) | May 03, 2022USD ($)$ / shares | Apr. 05, 2022USD ($) | Feb. 16, 2022 | Feb. 16, 2021 | Apr. 30, 2022USD ($) | Apr. 29, 2022USD ($)shares | Mar. 31, 2022shares | Mar. 31, 2021shares | May 20, 2022USD ($) | Apr. 06, 2022USD ($) | Feb. 25, 2022USD ($) |
Subsequent Event [Line Items] | ||||||||||||
Date dividends declared | Feb. 16, 2022 | Feb. 16, 2021 | ||||||||||
Date dividends paid | Mar. 31, 2022 | Mar. 30, 2021 | ||||||||||
Date of record | Mar. 17, 2022 | Mar. 16, 2021 | ||||||||||
Total number of shares common shares repurchased | shares | 23,373,504 | 8,000,000 | ||||||||||
Share Repurchase Program 2022 [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate purchase amount | $ 6,500,000,000 | |||||||||||
Previous Share Repurchase Program [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate remaining authorization amount of common Stock share repurchase | $ 1,500,000,000 | |||||||||||
CoreBridge 18-Month DDTL Facility [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt instrument term | 18 months | |||||||||||
Maximum borrowing capacity | $ 6,000,000,000 | |||||||||||
CoreBridge 3-Year DDTL Facility [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt instrument term | 3 years | |||||||||||
Maximum borrowing capacity | $ 3,000,000,000 | |||||||||||
Subsequent event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Dividends declared per common share | $ / shares | $ 0.32 | |||||||||||
Dividends declared per preferred share | $ / shares | $ 365.625 | |||||||||||
Amount of debt issued | $ 6,500,000,000 | |||||||||||
Proceeds from issued senior notes | $ 6,500,000,000 | |||||||||||
Subsequent event | Certain Notes And Debentures [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Aggregate purchase price of debt | $ 6,800,000,000 | |||||||||||
Subsequent event | Notes Due 2023, 1.500% [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Repayment of debt | € | € 750 | |||||||||||
Range of guaranteed minimum return rates (as a percent) | 1.50% | |||||||||||
Subsequent event | CoreBridge 3-Year DDTL Facility [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 2,500,000,000 | |||||||||||
Remaining borrowing capacity | $ 2,500,000,000 | |||||||||||
Subsequent event | Senior Notes Due 2025, 3.500% [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Range of guaranteed minimum return rates (as a percent) | 3.50% | |||||||||||
Amount of debt issued | $ 1,000,000,000 | |||||||||||
Subsequent event | Senior Notes Due 2027, 3.650% [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Range of guaranteed minimum return rates (as a percent) | 3.65% | |||||||||||
Amount of debt issued | $ 1,250,000,000 | |||||||||||
Subsequent event | Senior Notes Due 2029, 3.850% [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Range of guaranteed minimum return rates (as a percent) | 3.85% | |||||||||||
Amount of debt issued | $ 1,000,000,000 | |||||||||||
Subsequent event | Senior Notes Due 2032, 3.900% [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Range of guaranteed minimum return rates (as a percent) | 3.90% | |||||||||||
Amount of debt issued | $ 1,500,000,000 | |||||||||||
Subsequent event | Senior Notes Due 2042, 4.350% [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Range of guaranteed minimum return rates (as a percent) | 4.35% | |||||||||||
Amount of debt issued | $ 500,000,000 | |||||||||||
Subsequent event | Senior Notes Due 2052, 4.400% [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Range of guaranteed minimum return rates (as a percent) | 4.40% | |||||||||||
Amount of debt issued | $ 1,250,000,000 | |||||||||||
Subsequent event | Promissory Note [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Repayment of debt | $ 8,300,000,000 | |||||||||||
Subsequent event | Common Stock | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Date dividends declared | May 3, 2022 | |||||||||||
Date dividends paid | Jun. 30, 2022 | |||||||||||
Date of record | Jun. 16, 2022 | |||||||||||
Total number of shares common shares repurchased | shares | 10,000,000 | |||||||||||
Aggregate purchase price of repurchased shares | $ 598,000,000 | |||||||||||
Subsequent event | Preferred Stock | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Date dividends declared | May 3, 2022 | |||||||||||
Date dividends paid | Jun. 15, 2022 | |||||||||||
Date of record | May 31, 2022 |