Unaudited Pro Forma Condensed Balance Sheets
As of March 31, 2024
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As Reported | Transaction Accounting Adjustments | | | |
| (in millions, except for share data) | | AIG | | Corebridge (Note a) | | Pro Forma Adjustments | Notes | | AIG Pro Forma |
| Assets: | | | | | | | | | |
| Investments: | | | | | | | | | |
| Fixed maturity securities: | | | | | | | | | |
| Bonds available for sale, at fair value, net of allowance | $ | 232,487 | | $ | (168,787) | | $ | 125 | | c | $ | 63,825 | |
| Other bond securities, at fair value | | 5,403 | | | (4,653) | | | — | | | | 750 | |
| Equity securities, at fair value | | 797 | | | (76) | | | — | | | | 721 | |
| Mortgage and other loans receivable, net of allowance | | 52,475 | | | (46,296) | | | (1,686) | | c | | 4,493 | |
| Other invested assets | | 15,977 | | | (9,956) | | | 9,080 | | c, e | | 15,101 | |
| Short-term investments | | 15,077 | | | (4,144) | | | — | | | | 10,933 | |
| Total investments | | 322,216 | | | (233,912) | | | 7,519 | | | | 95,823 | |
| Cash | | 1,816 | | | (359) | | | 876 | | f | | 2,333 | |
| Accrued investment income | | 2,698 | | | (2,131) | | | (6) | | c | | 561 | |
| Premiums and other receivables, net of allowance | | 11,293 | | | (685) | | | — | | | | 10,608 | |
| Reinsurance assets - Fortitude Re, net of allowance | | 29,732 | | | (26,078) | | | — | | | | 3,654 | |
| Reinsurance assets - other, net of allowance | | 38,833 | | | (1,592) | | | — | | | | 37,241 | |
| Deferred income taxes | | 14,376 | | | (8,136) | | | (537) | | h | | 5,703 | |
| Deferred policy acquisition costs | | 12,111 | | | (10,007) | | | — | | | | 2,104 | |
| Market risk benefit assets, at fair value | | 1,172 | | | (1,172) | | | — | | | | — | |
| Other assets, net of allowance | | 12,313 | | | (2,444) | | | 377 | | h | | 10,246 | |
| Separate account assets, at fair value | | 95,173 | | | (95,173) | | | — | | | | — | |
| Assets held for sale | | 2,388 | | | (2,349) | | | — | | | | 39 | |
| Total assets | $ | 544,121 | | $ | (384,038) | | $ | 8,229 | | | $ | 168,312 | |
| Liabilities: | | | | | | | | | |
| Liability for unpaid losses and loss adjustment expenses, net of allowance | $ | 70,060 | | | $ | — | | | — | | | $ | 70,060 | |
| Unearned premiums | | 17,831 | | | (10) | | | — | | | | 17,821 | |
| Future policy benefits for life and accident and health insurance contracts | | 58,985 | | | (57,587) | | | — | | | | 1,398 | |
| Policyholder contract deposits | | 163,698 | | | (163,698) | | | — | | | | — | |
| Market risk benefit liabilities, at fair value | | 5,167 | | | (5,167) | | | — | | | | — | |
| Other policyholder funds | | 3,315 | | | (2,864) | | | — | | | | 451 | |
| Fortitude Re funds withheld payable | | 28,789 | | | (25,323) | | | — | | | | 3,466 | |
| Other liabilities | | 28,245 | | | (9,444) | | | — | | | | 18,801 | |
| Long-term debt | | 19,318 | | | (9,436) | | | — | | | | 9,882 | |
| Debt of consolidated investment entities | | 2,617 | | | (1,398) | | | (1,052) | | c | | 167 | |
| Separate account liabilities | | 95,173 | | | (95,173) | | | — | | | | — | |
| Liabilities held for sale | | 1,813 | | | (1,773) | | | — | | | | 40 | |
| Total liabilities | | 495,011 | | | (371,873) | | | (1,052) | | | | 122,086 | |
| Contingencies, commitments and guarantees | | | | | | | | | |
| AIG shareholders’ equity: | | | | | | | | | |
| Preferred stock | | — | | | — | | | — | | | | — | |
| Common stock | | 4,766 | | | — | | | — | | | | 4,766 | |
| Treasury stock, at cost | | (60,603) | | | — | | | — | | | | (60,603) | |
| Additional paid-in capital | | 75,625 | | | — | | | (456) | | f | | 75,169 | |
| Retained earnings | | 38,466 | | | (13,938) | | | 9,737 | | g | | 34,265 | |
| Accumulated other comprehensive loss | | (14,869) | | | 7,485 | | | — | | | | (7,384) | |
| Total AIG shareholders’ equity | | 43,385 | | | (6,453) | | | 9,281 | | | | 46,213 | |
| Non-redeemable noncontrolling interests | | 5,725 | | | (5,712) | | | — | | | | 13 | |
| Total equity | | 49,110 | | | (12,165) | | | 9,281 | | | | 46,226 | |
| Total liabilities and equity | $ | 544,121 | | $ | (384,038) | | $ | 8,229 | | | $ | 168,312 | |
Unaudited Pro Forma Condensed Income Statement
March 31, 2024
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As Reported | | Transaction Accounting Adjustments | | | |
| (in millions, except for share data) | | AIG | | Corebridge (Note a) | | Pro Forma Adjustments | Notes | | AIG - Pro Forma |
| Revenues: | | | | | | | | | |
| Premiums | $ | 8,167 | | $ | (2,295) | | $ | — | | | $ | 5,872 | |
| Policy fees | | 714 | | | (714) | | | — | | | | — | |
| Total net investment income | | 3,904 | | | (2,963) | | | 1,994 | | c, d, e | | 2,935 | |
| Total net realized gains (losses) | | (424) | | | 348 | | | — | | | | (76) | |
| Other income | | 217 | | | (215) | | | — | | | | 2 | |
| Total revenues | | 12,578 | | | (5,839) | | | 1,994 | | | | 8,733 | |
| Benefits, losses and expenses: | | | | | | | | | |
| Policyholder benefits and losses incurred | | 6,320 | | | (2,807) | | | — | | | | 3,513 | |
| Change in the fair value of market risk benefits, net | | (369) | | | 369 | | | — | | | | — | |
| Interest credited to policyholder account balances | | 1,204 | | | (1,204) | | | — | | | | — | |
| Amortization of deferred policy acquisition costs | | 1,104 | | | (266) | | | — | | | | 838 | |
| General operating and other expenses | | 2,014 | | | (825) | | | — | | | | 1,189 | |
| Interest expense | | 260 | | | (130) | | | (6) | | c | | 124 | |
| Loss on extinguishment of debt | | — | | | — | | | — | | | | — | |
| Net (gain) loss on divestitures and other | | (6) | | | 5 | | | — | | | | (1) | |
| Total benefits, losses and expenses | | 10,527 | | | (4,858) | | | (6) | | | | 5,663 | |
| Income (loss) from continuing operations before income taxes | | 2,051 | | | (981) | | | 2,000 | | | | 3,070 | |
| Income tax (benefit) expense | | 451 | | | (178) | | | 405 | | h | | 678 | |
| Income (loss) from continuing operations | | 1,600 | | | (803) | | | 1,595 | | | | 2,392 | |
| | | | | | | | | |
| | | | | | | | | |
| Net income (loss) attributable to noncontrolling interests | | 384 | | | 28 | | | (412) | | g | | — | |
| Net income attributable to AIG | | 1,216 | | | (831) | | | 2,007 | | | | 2,392 | |
| Less: Dividends on preferred stock | | 22 | | | — | | | — | | | | 22 | |
| Net income attributable to AIG common shareholders | $ | 1,194 | | $ | (831) | | $ | 2,007 | | | $ | 2,370 | |
| Income from continuing operations per share of common stock: | | | | | | | | | |
| Basic | $ | 1.75 | | | | | | $ | 3.47 |
| Diluted | $ | 1.74 | | | | | | $ | 3.44 |
| Weighted average shares outstanding: | | | | | | | | | |
| Basic | | 682,576,848 | | | | | | | | 682,576,848 | |
| Diluted | | 687,961,518 | | | | | | | | 687,961,518 | |
Unaudited Pro Forma Condensed Income Statement
December 31, 2023
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As Reported | | Transaction Accounting Adjustments | | | |
| (in millions, except for share data) | | AIG | | Corebridge (Note a) | | Validus (Note b) | | CRS (Note b) | | Pro Forma Adjustments | Notes | | AIG - Pro Forma |
| Revenues: | | | | | | | | | | | | | |
| Premiums | $ | 33,254 | | $ | (7,690) | | $ | (2,322) | | $ | (323) | | $ | — | | | $ | 22,919 | |
| Policy fees | | 2,797 | | | (2,797) | | | — | | | — | | | — | | | | — | |
| Total net investment income | | 14,592 | | | (11,255) | | | (184) | | | (1) | | | 1,444 | | c, d, e | | 4,596 | |
| Total net realized gains (losses) | | (4,608) | | | 3,578 | | | 88 | | | — | | | — | | | | (942) | |
| Other income | | 767 | | | (756) | | | — | | | — | | | — | | | | 11 | |
| Total revenues | | 46,802 | | | (18,920) | | | (2,418) | | | (324) | | | 1,444 | | | | 26,584 | |
| Benefits, losses and expenses: | | | | | | | | | | | | | |
| Policyholder benefits and losses incurred | | 24,755 | | | (9,364) | | | (1,303) | | | (272) | | | — | | | | 13,816 | |
| Change in the fair value of market risk benefits, net | | 2 | | | (2) | | | — | | | — | | | — | | | | — | |
| Interest credited to policyholder account balances | | 4,424 | | | (4,424) | | | — | | | — | | | — | | | | — | |
| Amortization of deferred policy acquisition costs | | 4,808 | | | (1,037) | | | (591) | | | (1) | | | — | | | | 3,179 | |
| General operating and other expenses | | 8,499 | | | (3,257) | | | (126) | | | (28) | | | | | | 5,088 | |
| Interest expense | | 1,136 | | | (562) | | | (29) | | | — | | | (26) | | c | | 519 | |
| Loss on extinguishment of debt | | (37) | | | — | | | (21) | | | — | | | — | | | | (58) | |
| Net (gain) loss on divestitures and other | | (643) | | | 697 | | | — | | | — | | | — | | | | 54 | |
| Total benefits, losses and expenses | | 42,944 | | | (17,949) | | | (2,070) | | | (301) | | | (26) | | | | 22,598 | |
| Income (loss) from continuing operations before income taxes | | 3,858 | | | (971) | | | (348) | | | (23) | | | 1,470 | | | | 3,986 | |
| Income tax (benefit) expense | | (20) | | | 72 | | | (65) | | | (5) | | | 319 | | h | | 301 | |
| Income (loss) from continuing operations | | 3,878 | | | (1,043) | | | (283) | | | (18) | | | 1,151 | | | | 3,685 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Net income (loss) attributable to noncontrolling interests | | 235 | | | 59 | | | — | | | — | | | (294) | | g | | — | |
| Net income attributable to AIG | | 3,643 | | | (1,102) | | | (283) | | | (18) | | | 1,445 | | | | 3,685 | |
| Less: Dividends on preferred stock | | 29 | | | — | | | — | | | — | | | — | | | | 29 | |
| Net income attributable to AIG common shareholders | $ | 3,614 | | $ | (1,102) | | $ | (283) | | $ | (18) | | $ | 1,445 | | | $ | 3,656 | |
| Income from continuing operations per share of common stock: | | | | | | | | | | | | | |
| Basic | $ | 5.02 | | | | | | | | | | $ | 5.08 |
| Diluted | $ | 4.98 | | | | | | | | | | $ | 5.04 |
| Weighted average shares outstanding: | | | | | | | | | | | | | |
| Basic | | 719,506,291 | | | | | | | | | | | | 719,506,291 | |
| Diluted | | 725,233,068 | | | | | | | | | | | | 725,233,068 | |
Unaudited Pro Forma Condensed Income Statement
December 31, 2022
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As Reported | | Transaction Accounting Adjustments | | | |
| (in millions, except for share data) | | AIG | | Corebridge (Note a) | | Pro Forma Adjustments | Notes | | AIG - Pro Forma |
| Revenues: | | | | | | | | | |
| Premiums | $ | 31,856 | | $ | (5,091) | | $ | — | | | $ | 26,765 | |
| Policy fees | | 2,913 | | | (2,913) | | | — | | | | — | |
| Total net investment income | | 11,767 | | | (9,917) | | | 2 | | c, d | | 1,852 | |
| Total net realized gains (losses) | | 7,064 | | | (6,272) | | | — | | | | 792 | |
| Other income | | 850 | | | (817) | | | — | | | | 33 | |
| Total revenues | | 54,450 | | | (25,010) | | | 2 | | | | 29,442 | |
| Benefits, losses and expenses: | | | | | | | | | |
| Policyholder benefits and losses incurred | | 22,176 | | | (6,716) | | | — | | | | 15,460 | |
| Change in the fair value of market risk benefits, net | | (958) | | | 958 | | | — | | | | — | |
| Interest credited to policyholder account balances | | 3,744 | | | (3,744) | | | — | | | | — | |
| Amortization of deferred policy acquisition costs | | 4,557 | | | (1,013) | | | — | | | | 3,544 | |
| General operating and other expenses | | 9,122 | | | (3,464) | | | — | | | | 5,658 | |
| Interest expense | | 1,125 | | | (427) | | | (24) | | c | | 674 | |
| Loss on extinguishment of debt | | 303 | | | — | | | — | | | | 303 | |
| Net (gain) loss on divestitures and other | | 82 | | | 71 | | | — | | | | 153 | |
| Total benefits, losses and expenses | | 40,151 | | | (14,335) | | | (24) | | | | 25,792 | |
| Income (loss) from continuing operations before income taxes | | 14,299 | | | (10,675) | | | 26 | | | | 3,650 | |
| Income tax (benefit) expense | | 3,025 | | | (2,128) | | | (41) | | h | | 856 | |
| Income (loss) from continuing operations | | 11,274 | | | (8,547) | | | 67 | | | | 2,794 | |
| | | | | | | | | |
| Net income (loss) attributable to noncontrolling interests | | 1,046 | | | (175) | | | (871) | | g | | — | |
| Net income attributable to AIG | | 10,228 | | | (8,372) | | | 938 | | | | 2,794 | |
| Less: Dividends on preferred stock | | 29 | | | — | | | — | | | | 29 | |
| Net income attributable to AIG common shareholders | $ | 10,199 | | $ | (8,372) | | $ | 938 | | | $ | 2,765 | |
| Income from continuing operations per share of common stock: | | | | | | | | | |
| Basic | $ | 13.10 | | | | | | $ | 3.55 |
| Diluted | $ | 12.94 | | | | | | $ | 3.51 |
| Weighted average shares outstanding: | | | | | | | | | |
| Basic | | 778,621,118 | | | | | | | | 778,621,118 | |
| Diluted | | 787,941,750 | | | | | | | | 787,941,750 | |
Unaudited Pro Forma Condensed Income Statement
December 31, 2021
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As Reported | | Transaction Accounting Adjustments | | | |
| (in millions, except for share data) | | AIG | | Corebridge (Note a) | | Pro Forma Adjustments | Notes | | AIG - Pro Forma |
| Revenues: | | | | | | | | | |
| Premiums | $ | 31,285 | | $ | (5,666) | | $ | — | | | $ | 25,619 | |
| Policy fees | | 3,005 | | | (3,005) | | | — | | | | — | |
| Total net investment income | | 14,612 | | | (11,713) | | | 381 | | c, d | | 3,280 | |
| Total net realized gains (losses) | | 2,271 | | | (1,765) | | | — | | | | 506 | |
| Other income | | 984 | | | (987) | | | — | | | | (3) | |
| Total revenues | | 52,157 | | | (23,136) | | | 381 | | | | 29,402 | |
| Benefits, losses and expenses: | | | | | | | | | |
| Policyholder benefits and losses incurred | | 23,785 | | | (7,402) | | | — | | | | 16,383 | |
| Change in the fair value of market risk benefits, net | | (447) | | | 447 | | | — | | | | — | |
| Interest credited to policyholder account balances | | 3,570 | | | (3,570) | | | — | | | | — | |
| Amortization of deferred policy acquisition costs | | 4,524 | | | (946) | | | — | | | | 3,578 | |
| General operating and other expenses | | 8,728 | | | (2,949) | | | — | | | | 5,779 | |
| Interest expense | | 1,305 | | | (401) | | | (25) | | c | | 879 | |
| Loss on extinguishment of debt | | 389 | | | (74) | | | — | | | | 315 | |
| Net (gain) loss on divestitures and other | | (3,044) | | | 3,035 | | | — | | | | (9) | |
| Total benefits, losses and expenses | | 38,810 | | | (11,860) | | | (25) | | | | 26,925 | |
| Income (loss) from continuing operations before income taxes | | 13,347 | | | (11,276) | | | 406 | | | | 2,477 | |
| Income tax (benefit) expense | | 2,441 | | | (2,030) | | | (19) | | h | | 392 | |
| Income (loss) from continuing operations | | 10,906 | | | (9,246) | | | 425 | | | | 2,085 | |
| | | | | | | | | |
| Net income (loss) attributable to noncontrolling interests | | 539 | | | (426) | | | (113) | | g | | — | |
| Net income attributable to AIG | | 10,367 | | | (8,820) | | | 538 | | | | 2,085 | |
| Less: Dividends on preferred stock | | 29 | | | — | | | — | | | | 29 | |
| Net income attributable to AIG common shareholders | $ | 10,338 | | $ | (8,820) | | $ | 538 | | | $ | 2,056 | |
| Income from continuing operations per share of common stock: | | | | | | | | | |
| Basic | $ | 12.10 | | | | | | $ | 2.41 |
| Diluted | $ | 11.95 | | | | | | $ | 2.38 |
| Weighted average shares outstanding: | | | | | | | | | |
| Basic | | 854,320,449 | | | | | | | | 854,320,449 | |
| Diluted | | 864,884,879 | | | | | | | | 864,884,879 | |
Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements
As discussed below, the detail for certain pro forma adjustments is as follows:
| | | | | | | | |
| As of 3/31/2024 | |
| Retained interest in investment entities | $ | 628 | | (c) |
| Equity investment in Corebridge | 8,452 | | (e) |
| Other invested assets adjustment | $ | 9,080 | | |
| | | | | | | | | | | | | | | | | |
| Three months ended | Twelve months ended | |
| March 31, 2024 | December 31, 2023 | December 31, 2022 | December 31, 2021 | |
| Income/(loss) from investment entities | $ | (35) | | $ | (60) | | $ | 97 | | $ | 464 | | (c) |
| Investment management fees charged to AIG from Corebridge | (7) | | (34) | | (95) | | (83) | | (d) |
| Corebridge equity income - fair value changes and dividends | 2,036 | | 1,538 | | — | | — | | (e) |
| Total net investment income adjustments | $ | 1,994 | | $ | 1,444 | | $ | 2 | | $ | 381 | | |
(a)Reflects the deconsolidation of Corebridge's assets, liabilities and equity after intercompany eliminations. The pro forma income statements for each period presented reflects Corebridge as discontinued operations after intercompany eliminations and Corebridge will be presented as discontinued operations within our future filings beginning with our Form 10-Q for the quarter ended June 30, 2024.
(b)Reflects the 2023 disposals of Validus and CRS, which did not meet the criteria for discontinued operations. These adjustments are not required in the years prior to their disposition. The adjustments are reflected to enhance comparability to AIG's future income statements.
(c)Upon deconsolidation of Corebridge, certain intercompany investment entities will no longer be consolidated by AIG. The pro forma adjustments recognize (i) the deconsolidation of the investment entities' assets and debt (ii) AIG's retained interest in these entities which are either classified as available for sale securities or equity method investments, and (iii) the net investment income adjustments as described above. See net investment income adjustments above.
(d)Relates to intercompany investment management fees charged to AIG from Corebridge, which were previously eliminated upon consolidation. These services for certain of AIG's investments are expected to continue after the Separation.
(e)Reflects the retention by AIG of 48.4 percent of the outstanding common shares of Corebridge. AIG elected the fair value option to account for its investment in Corebridge at the time of deconsolidation. The pro forma net investment income reflects the fair value change in Corebridge’s common stock and dividends received for the year ended December 31, 2023 and the three months ended March 31, 2024. The pro forma equity income of Corebridge is not reflected in 2022 and 2021 income statements. In accordance with Article 11, the results of Corebridge are reflected as discontinued operations in 2024, 2023, 2022 and 2021.
(f)Represents the cash received by AIG following the May 30, 2024 sale of 30.0 million shares (representing approximately 5 percent of the total Corebridge outstanding common stock). The total effect is recorded in AIG's shareholders' equity.
(g)Reflects the deconsolidation of Corebridge after intercompany eliminations as follows: (i) Retained earnings adjustment to remove the net assets of Corebridge of $12,165 million, (ii) non-controlling interests of $5,712 million and (iii) recognition of accumulated other comprehensive loss of $7,485 million, and (iv) the removal of non-controlling interest for each income statement presented. The impact of the pro forma adjustment column represents the establishment of the retained interest in Corebridge at fair value, as well as the establishment of our retained interest in previously consolidated investment entities as described in note (c).
(h)The income tax pro forma adjustments recognize (i) tax expense which reflects the application of the relevant statutory tax rates to the jurisdictional mix of income including pre-tax pro forma adjustments described above and certain tax allocations and (ii) for the balance sheet (a) a tax receivable of $377 million due from Corebridge that has not been settled before the date of Separation and (b) the tax impact of the sale of an approximate 5 percent interest in Corebridge and establishment of a deferred tax liability related to the book and tax basis difference in AIG’s remaining interest in Corebridge.
