01—Abstract
Summary
Summary of the 8-K filed June 25, 2024. Cited figures are marked; the original filing is the authoritative source.
On June 25, 2024, AIG filed an 8-K under Regulation FD with recast financial information that removes Corebridge Financial (NYSE: CRBG) from its continuing operations.
AIG held 48.4%a of Corebridge's common stock as of the June 9, 2024 Deconsolidation Date. AIG deconsolidated Corebridge for accounting purposes after it waived its right to majority board representation and one of its board designees resigned. Corebridge's historical results for all periods are now reported as discontinued operations, and AIG will carry its retained stake as an equity method investment at fair value based on Corebridge's stock price.
The change significantly reduces the size of AIG's reported continuing operations. For full-year 2023, recast adjusted pre-tax income is $4,290 millionb, compared with $7,401 million previously reported, and recast adjusted after-tax income per diluted share is $4.39, compared with $6.79 previously reported. Recast income from continuing operations was $2,741 million, while total net income attributable to AIG was $3,643 million, including $1,137 million from Corebridge discontinued operations.
Going forward, AIG will no longer report a Life and Retirement segment or asset management within Other Operations. General Insurance results were not affected. Corebridge dividends and changes in its stock price will flow through net investment income under US GAAP, and adjusted pre-tax income will include Corebridge dividends while excluding stock price changes.
For investors, the key takeaway is that AIG's future reported earnings will reflect a smaller, General Insurance-focused business plus a mark-to-market-free stake in Corebridge that contributes dividends rather than consolidated earnings. Comparisons with prior periods should use the recast figures.
The financial information in this filing is unaudited and is not a complete set of financial statements. It is also furnished rather than filed, so it is not subject to Section 18 liability.
02—Key points
Key Highlights
- AIG held 48.4% of Corebridge Financial's outstanding common stock as of the June 9, 2024 Deconsolidation Date, and deconsolidation was triggered by AIG waiving majority board representation and a designee's resignation.
- Corebridge's results for all periods are now presented as discontinued operations, so AIG's continuing operations reflect only its remaining businesses, mainly General Insurance and Other Operations.
- Recast FY2023 adjusted pre-tax income is $4,290 million, versus $7,401 million previously reported, a reduction of roughly $3,111 million from Corebridge discontinued operations.
- Recast FY2023 adjusted after-tax income per diluted share is $4.39, versus $6.79 previously reported; the Corebridge contribution was $2.40 per diluted share.
- Recast FY2023 income from continuing operations was $2,741 million, and net income attributable to AIG common shareholders was $3,614 million, including $902 million attributable to Corebridge discontinued operations.
- Going forward, AIG's retained Corebridge stake will be accounted for as an equity method investment at fair value; dividends and stock price changes will go through net investment income under GAAP, and adjusted pre-tax income will include Corebridge dividends but exclude stock price changes.
- The Life and Retirement segment and asset management within Other Operations are no longer presented, and General Insurance results were not affected by the deconsolidation.
03—Questions
Frequently Asked Questions
Why did AIG deconsolidate Corebridge Financial?
AIG met the deconsolidation criteria on June 9, 2024 because it waived its right to majority representation on Corebridge's board and one of its designees resigned from the board. AIG still owns 48.4% of Corebridge's common stock, but it no longer controls the board.
How will AIG's reported earnings change after deconsolidation?
Corebridge's results are now reported as discontinued operations, so AIG's continuing operations exclude them. Future GAAP earnings will include Corebridge dividends and changes in Corebridge's stock price within net investment income. Adjusted pre-tax income will include Corebridge dividends but exclude stock price changes. Recast 2023 adjusted pre-tax income was $4,290 million, compared with $7,401 million previously reported.
Which AIG segments are affected by the change?
AIG will no longer present the Life and Retirement segment in its entirety, and asset management is no longer included in Other Operations. General Insurance results were not affected by the deconsolidation. Other Operations is recast to exclude Corebridge corporate expenses, interest expense, and asset management, and to include certain legacy life reinsurance arrangements previously reported in Life and Retirement.
Are the recast figures audited?
No. The financial information in Exhibit 99.1 is unaudited and is not intended to be a complete presentation of AIG's financial position or results of operations. It is provided to show the effect of the Corebridge change on selected metrics, and complete figures will appear in future SEC filings. The 8-K's Regulation FD disclosure is also not deemed filed under Section 18 of the Exchange Act.
04—Continue