8-KRegulation FDExhibits & Filings

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Regulation FD Disclosure (Jun 25, 2024)

Filed June 25, 2024For Securities:AIG

Summary

American International Group, Inc. (AIG) has filed an 8-K to disclose the accounting deconsolidation of its former Life and Retirement business, now operating as Corebridge Financial, Inc. (CRBG). As of June 9, 2024, AIG's ownership stake fell to 48.4%, and through strategic decisions regarding board representation, AIG has met the criteria to deconsolidate Corebridge for accounting purposes. This means Corebridge's financial results will now be presented as discontinued operations within AIG's financial statements. This change significantly impacts how AIG reports its financial performance. Going forward, AIG will account for its remaining stake in Corebridge using the fair value option, treating it as an equity method investment. Dividends received and changes in Corebridge's stock price will be recognized as net investment income. Critically, AIG's adjusted pre-tax income (API) and adjusted after-tax income (AATI) will now exclude the impact of Corebridge, providing a clearer view of the performance of AIG's continuing operations, specifically General Insurance and Other Operations (excluding the former asset management component of Corebridge).

Key Highlights

  • 1AIG has deconsolidated Corebridge Financial, Inc. (CRBG) for accounting purposes as of June 9, 2024, due to reduced ownership and board control.
  • 2Corebridge's financial results will now be reported as discontinued operations in AIG's consolidated financial statements.
  • 3AIG will use the fair value option to account for its retained interest in Corebridge, treating it as an equity method investment.
  • 4Dividends from Corebridge and changes in its stock price will be included in AIG's net investment income.
  • 5AIG's Adjusted Pre-Tax Income (API) and Adjusted After-Tax Income (AATI) will no longer include Corebridge's results, offering a clearer view of continuing operations.
  • 6The Life and Retirement segment will no longer be presented as a distinct segment.
  • 7The 'Other Operations' segment will be recast to exclude Corebridge's corporate expenses, interest expense, and asset management business.

Frequently Asked Questions

AIG deconsolidated Corebridge for accounting purposes because its ownership stake decreased to 48.4% as of June 9, 2024, and AIG waived its right to majority board representation, thus no longer meeting the control requirements for consolidation.

Corebridge's historical and future financial results will be presented as discontinued operations. AIG will recognize its remaining investment in Corebridge at fair value, with dividends and stock price changes impacting net investment income.

AIG's API and Adjusted After-Tax Income (AATI) will be recast to exclude Corebridge's results. This means these metrics will solely reflect the performance of AIG's continuing operations, providing a more focused view for investors.

No, AIG will no longer present the Life and Retirement segment in its entirety. The results of this former segment are now treated as discontinued operations through Corebridge.