AMERICAN INTERNATIONAL GROUP INC
For the period ended Dec 31, 2024. Filed Feb 13, 2025.
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FY2024 · Filed Feb 13, 2025
Contents
Segment Information
- Segment Information
In the fourth quarter of 2024, the Company realigned its organizational structure and the composition of its reportable segments to reflect changes in how the Company manages its operations, specifically the level at which its chief operating decision makers (CODMs) regularly review operating results and allocate resources. Our CODMs are the chief executive officer (CEO) and chief financial officer (CFO). The CODMs evaluate performance of the segments based on underwriting income (loss). The CODMs use this measure to benchmark AIG’s performance, assessing performance of the segments and in establishing management’s compensation.
AIG hasthree reportable segments: North America Commercial, International Commercial and Global Personal. Prior years’ presentations have been recast to conform to the new reportable segments. Our General Insurance business (General Insurance) consists of ourthree segments and the Net investment income related to our insurance operations.
NORTH AMERICA COMMERCIAL
North America Commercial consists of insurance businesses in the United States, Canada and Bermuda.
INTERNATIONAL COMMERCIAL
International Commercial consists of 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 Underwriting Ltd. as well as AIG’s Global Specialty business.
GLOBAL PERSONAL
Global Personal consists primarily of insurance businesses in the United States as well as Japan, the United Kingdom, Europe, Middle East and Africa (EMEA region), Asia Pacific, Latin America and Caribbean, and China.
PRODUCTS
The segments consist of the following products:
–North America and International Commercial consists of Property & Short Tail, Casualty, Financial Lines and Global Specialty.
–Global Personal consists of Global Accident & Health and Personal Lines.
For further discussion on recent activity in the General Insurance business, see Note 1.
OTHER OPERATIONS
Other Operations predominantly consists of Net Investment Income from our AIG Parent liquidity portfolio, Corebridge dividend income, corporate General operating expenses, and Interest expense.
SEGMENT RESULTS
Management uses Underwriting income (loss) as the basis for the segment performance reviews. AIG calculates Underwriting income (loss) by subtracting Losses and loss adjustment expense incurred, Amortization of DAC, Other acquisition cost, and General operating expense from Net premiums earned. Assets by reportable segment are not used by the CODMs for purposes of making decisions about allocating resources to the segment and assessing its performance.
The following table presents AIG’s continuing operations by segment:
| (in millions) · NetPremiumsWritten · NetPremiumsEarned · Lossesand LossAdjustmentExpensesIncurred(a) · Amortizationof DAC(a) · OtherAcquisitionExpenses(a) · GeneralOperatingExpenses(a)(b) · UnderwritingIncome(Loss) · NetInvestmentIncome · Reconciliationto Income(Loss) fromContinuingOperationsBeforeIncome TaxExpense | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| North America Commercial | $8,452 | $8,172 | $5,713 | $824 | $222 | $865 | $548 | ||||
| International Commercial | 8,364 | 8,145 | 4,463 | 1,018 | 342 | 1,095 | 1,227 | ||||
| Global Personal | 7,086 | 7,140 | 3,862 | 1,571 | 573 | 992 | 142 | ||||
| Total General Insurance | $23,902 | $23,457 | $14,038 | $3,413 | $1,137 | $2,952 | $1,917 | $3,060 | $4,977 | ||
| Interest expense | — | (445) | |||||||||
| Other Operations | 424 | (207) | |||||||||
| Elimination and consolidations | — | (1) | |||||||||
| Total | 3,484 | 4,324 | |||||||||
| Reconciling items: | |||||||||||
| Changes in the fair values of equity securities, AIG's investment in Corebridge and gain on sale of shares | 586 | 586 | |||||||||
| Other income (expense) - net | 16 | — | |||||||||
| Gain (loss) on extinguishment of debt | — | (14) | |||||||||
| Net investment income on Fortitude Re funds withheld assets | 144 | 144 | |||||||||
| Net realized losses on Fortitude Re funds withheld assets | — | (39) | |||||||||
| Net realized gains (losses) on Fortitude Re funds withheld embedded derivative | — | (75) | |||||||||
| Net realized gains (losses)(c) | 8 | (428) | |||||||||
| Net gain (loss) on divestitures and other | — | 616 | |||||||||
| (Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | — | (105) | |||||||||
| Net loss reserve discount benefit (charge) | — | (226) | |||||||||
| Net results of businesses in run-off(d) | 17 | (111) | |||||||||
| Integration and transaction costs associated with acquiring or divesting businesses | — | (39) | |||||||||
| Restructuring and other costs(e) | — | (745) | |||||||||
| Non-recurring costs related to regulatory or accounting changes | — | (18) | |||||||||
| Total AIG Consolidated | $4,255 | $3,870 | |||||||||
| North America Commercial | $11,432 | $10,233 | $6,323 | $1,371 | $231 | $953 | $1,355 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| International Commercial | 8,168 | 7,964 | 4,641 | 943 | 350 | 1,028 | 1,002 | ||||
| Global Personal | 7,119 | 6,894 | 3,811 | 1,309 | 698 | 1,084 | (8) | ||||
| Total General Insurance | $26,719 | $25,091 | $14,775 | $3,623 | $1,279 | $3,065 | $2,349 | $3,022 | $5,371 | ||
| Interest expense | — | (498) | |||||||||
| Other Operations | 186 | (535) | |||||||||
| Elimination and consolidations | (13) | (17) | |||||||||
| Total | 3,195 | 4,321 | |||||||||
| Reconciling items: | |||||||||||
| Changes in the fair values of equity securities, AIG's investment in Corebridge and gain on sale of shares | 53 | 53 | |||||||||
| Other income (expense) - net | 8 | — | |||||||||
| Gain (loss) on extinguishment of debt | — | 37 | |||||||||
| Net investment income on Fortitude Re funds withheld assets | 180 | 180 | |||||||||
| Net realized losses on Fortitude Re funds withheld assets | — | (71) | |||||||||
| Net realized gains (losses) on Fortitude Re funds withheld embedded derivative | — | (273) | |||||||||
| Net realized gains (losses)(c) | (12) | (743) | |||||||||
| Net gain (loss) on divestitures and other | — | (29) | |||||||||
| Non-operating litigation reserves and settlements | — | (1) | |||||||||
| (Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | — | 62 | |||||||||
| Net loss reserve discount benefit (charge) | — | (195) | |||||||||
| Net results of businesses in run-off(d) | 21 | (31) | |||||||||
| Pension expense related to lump sum payments to former employees | — | (71) | |||||||||
| Integration and transaction costs associated with acquiring or divesting businesses | — | (6) | |||||||||
| Restructuring and other costs(e) | — | (356) | |||||||||
| Non-recurring costs related to regulatory or accounting changes | — | (22) | |||||||||
| Net impact from elimination of international reporting lag(f) | 1 | 12 | |||||||||
| Total AIG Consolidated | $3,446 | $2,867 | |||||||||
| (in millions) · NetPremiumsWritten · NetPremiumsEarned · Lossesand LossAdjustmentExpensesIncurred(a) · Amortizationof DAC(a) · OtherAcquisitionExpenses(a) · GeneralOperatingExpenses(a)(b) · UnderwritingIncome(Loss) · NetInvestmentIncome · Reconciliationto Income(Loss) fromContinuingOperationsBeforeIncome TaxExpense | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| North America Commercial | $10,899 | $10,444 | $7,218 | $1,381 | $174 | $927 | $744 | ||||
| International Commercial | 7,877 | 7,701 | 4,301 | 938 | 378 | 945 | 1,139 | ||||
| Global Personal | 6,736 | 7,195 | 3,888 | 1,214 | 813 | 1,115 | 165 | ||||
| Total General Insurance | $25,512 | $25,340 | $15,407 | $3,533 | $1,365 | $2,987 | $2,048 | $2,382 | $4,430 | ||
| Interest expense | — | (624) | |||||||||
| Other Operations | (122) | (1,000) | |||||||||
| Elimination and consolidations | 14 | 63 | |||||||||
| Total | 2,274 | 2,869 | |||||||||
| Reconciling items: | |||||||||||
| Changes in the fair values of equity securities, AIG's investment in Corebridge and gain on sale of shares | 29 | 29 | |||||||||
| Other income (expense) - net | 28 | — | |||||||||
| Gain (loss) on extinguishment of debt | — | (303) | |||||||||
| Net investment income on Fortitude Re funds withheld assets | 53 | 53 | |||||||||
| Net realized losses on Fortitude Re funds withheld assets | — | (99) | |||||||||
| Net realized gains (losses) on Fortitude Re funds withheld embedded derivative | — | 1,133 | |||||||||
| Net realized gains (losses)(c) | (61) | (268) | |||||||||
| Net gain (loss) on divestitures and other | — | (153) | |||||||||
| Non-operating litigation reserves and settlements | — | 16 | |||||||||
| (Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements | — | 160 | |||||||||
| Net loss reserve discount benefit (charge) | — | 703 | |||||||||
| Net results of businesses in run-off(d) | 6 | 25 | |||||||||
| Pension expense related to lump sum payments to former employees | — | (59) | |||||||||
| Integration and transaction costs associated with acquiring or divesting businesses | — | (12) | |||||||||
| Restructuring and other costs(e) | — | (423) | |||||||||
| Non-recurring costs related to regulatory or accounting changes | — | (26) | |||||||||
| Net impact from elimination of international reporting lag(f) | 41 | 127 | |||||||||
| Total AIG Consolidated | $2,370 | $3,772 | |||||||||
(a)The significant expense categories and amounts align with segment-level information that is regularly provided to the CODMs.
(b)General operating expenses primarily comprised of employee compensation and benefits, as well as professional fees.
(c)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).
(d)In the fourth quarter of 2024, AIG realigned and began excluding the net results of run-off businesses previously reported in Other Operations from Adjusted pre-tax income. Historical results have been recast to reflect these changes.
(e)In the year ended December 31, 2024, Restructuring and other costs increased primarily as a result of employee-related costs, including severance, and real estate impairment charges.
(f)For additional information, see Note 1.
For the year ended December 31, 2024, we recorded severance charges of $353 million and asset impairment of $53 million as a result of restructuring activities.
The following table presents AIG’s consolidated total revenues and real estate and other fixed assets, net of accumulated depreciation, by major geographic area:
| Total Revenues* | |||
|---|---|---|---|
| (in millions) | 2024 | 2023 | 2022 |
| North America Commercial | $8,172 | $10,233 | $10,444 |
| International Commercial | 8,145 | 7,964 | 7,701 |
| Global Personal | 7,140 | 6,894 | 7,195 |
| Net investment income | 4,255 | 3,446 | 2,370 |
| Net realized gains (losses) | (548) | (1,078) | 827 |
| Other income | 7 | 6 | 34 |
| Net results of businesses in run-off | 83 | 475 | 478 |
| Net impact from elimination of international reporting lag | — | 3 | 937 |
| Elimination and consolidations | (3) | (5) | 10 |
| Total Revenue | $27,251 | $27,938 | $29,996 |
| Total Revenues* | |||
|---|---|---|---|
| (in millions) | 2024 | 2023 | 2022 |
| North America | $13,031 | $14,701 | $15,163 |
| International | 14,220 | 13,237 | 14,833 |
| Consolidated | $27,251 | $27,938 | $29,996 |
| Real Estate and Other Fixed Assets,Net of Accumulated Depreciation | |||
| (in millions) | 2024 | 2023 | 2022 |
| North America | $804 | $760 | $768 |
| International | 312 | 372 | 385 |
| Consolidated | $1,116 | $1,132 | $1,153 |
*Revenues are generally reported according to the geographic location of the segment. International revenues consists of revenues from our General Insurance International operations.
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