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Variable Separate Account

American General Life Insurance Company

Financial Statements

December 31, 2023

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Report of Independent Registered Public Accounting Firm

To the Board of Directors of American General Life Insurance Company and the Contract Owners of Variable Separate Account.

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of each of the sub-accounts of Variable Separate Account indicated in the table below as of December 31, 2023, and the related statements of operations and changes in net assets for each of the periods indicated in the table below, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the sub-accounts of Variable Separate Account as of December 31, 2023, and the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.

 

American Funds IS American High-Income Trust Class 3 (1)

    SAST SA Fidelity Institutional AM® International Growth Portfolio Class 1 (1)

American Funds IS Asset Allocation Fund Class 2 (1)

    SAST SA Fidelity Institutional AM® International Growth Portfolio Class 3 (1)

American Funds IS Asset Allocation Fund Class 3 (1)

    SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1 (1)

American Funds IS Capital Income Builder Class 4 (1)

    SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 2 (1)

American Funds IS Global Growth Fund Class 2 (1)

    SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 3 (1)

American Funds IS Growth Fund Class 2 (1)

    SAST SA Fixed Income Index Portfolio Class 1 (1)

American Funds IS Growth Fund Class 3 (1)

    SAST SA Fixed Income Index Portfolio Class 3 (1)

American Funds IS Growth-Income Fund Class 2 (1)

    SAST SA Fixed Income Intermediate Index Portfolio Class 1 (1)

American Funds IS Growth-Income Fund Class 3 (1)

    SAST SA Fixed Income Intermediate Index Portfolio Class 3 (1)

American Funds IS International Fund Class 3 (1)

    SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1 (1)

American Funds IS U.S. Government Securities Fund Class 3 (1)

    SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 2 (1)

American Funds IS Ultra-Short Bond Fund Class 3 (1)

    SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 3 (1)

BlackRock 60/40 Target Allocation ETF V.I. Fund Class III (1)

    SAST SA Franklin Small Company Value Portfolio Class 1 (1)

BlackRock Global Allocation V.I. Fund Class III (1)

    SAST SA Franklin Small Company Value Portfolio Class 3 (1)

Columbia VP Dividend Opportunity Fund Class 1 (1)

    SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 1 (1)

Columbia VP Emerging Markets Bond Fund Class 2 (1)

    SAST SA JPMorgan Diversified Balanced Portfolio Class 1 (1)

Columbia VP Income Opportunities Fund Class 1 (1)

    SAST SA JPMorgan Diversified Balanced Portfolio Class 2 (1)

Columbia VP Large Cap Growth Fund Class 1 (1)

    SAST SA JPMorgan Diversified Balanced Portfolio Class 3 (1)

Columbia VP Limited Duration Credit Fund Class 2 (1)

    SAST SA JPMorgan Emerging Markets Portfolio Class 1 (1)

Columbia VP Overseas Core Fund Class 2 (1)

    SAST SA JPMorgan Emerging Markets Portfolio Class 2 (1)

Columbia VP Select Mid Cap Growth Opportunity Fund Class 1(1)

    SAST SA JPMorgan Emerging Markets Portfolio Class 3 (1)

Columbia VP Small Company Growth Fund Class 1 (1)

    SAST SA JPMorgan Equity-Income Portfolio Class 1 (1)

CTIVP® Principal Blue Chip Growth Fund Class 1 (1)

    SAST SA JPMorgan Equity-Income Portfolio Class 2 (1)

Delaware Ivy VIP Asset Strategy Class II (1)

    SAST SA JPMorgan Equity-Income Portfolio Class 3 (1)

FTVIP Franklin Allocation VIP Fund Class 1 (1)

    SAST SA JPMorgan Global Equities Portfolio Class 1 (1)

FTVIP Franklin Allocation VIP Fund Class 2 (1)

    SAST SA JPMorgan Global Equities Portfolio Class 2 (1)

FTVIP Franklin Income VIP Fund Class 1 (1)

    SAST SA JPMorgan Global Equities Portfolio Class 3 (1)

FTVIP Franklin Income VIP Fund Class 2 (1)

    SAST SA JPMorgan Large Cap Core Portfolio Class 1 (1)

FTVIP Franklin Strategic Income VIP Fund Class 2 (1)

    SAST SA JPMorgan Large Cap Core Portfolio Class 2 (1)

Goldman Sachs VIT Government Money Market Fund Institutional Shares (1)

    SAST SA JPMorgan Large Cap Core Portfolio Class 3 (1)

Goldman Sachs VIT Government Money Market Fund Service Shares (1)

    SAST SA JPMorgan MFS Core Bond Portfolio Class 1 (1)

Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Advisor Shares (1)

    SAST SA JPMorgan MFS Core Bond Portfolio Class 2 (1)

Goldman Sachs VIT Trend Driven Allocation Fund Service Shares (1)

    SAST SA JPMorgan MFS Core Bond Portfolio Class 3 (1)

Invesco V.I. American Franchise Fund Series I (1)

    SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1 (1)

Invesco V.I. American Franchise Fund Series II (1)

    SAST SA JPMorgan Mid-Cap Growth Portfolio Class 2 (1)

Invesco V.I. Balanced-Risk Allocation Fund Series II (1)

    SAST SA JPMorgan Mid-Cap Growth Portfolio Class 3 (1)

Invesco V.I. Comstock Fund Series I (1)

    SAST SA Large Cap Growth Index Portfolio Class 1 (1)

Invesco V.I. Comstock Fund Series II (1)

    SAST SA Large Cap Growth Index Portfolio Class 3 (1)

Invesco V.I. Growth and Income Fund Series I (1)

    SAST SA Large Cap Index Portfolio Class 1 (1)

Invesco V.I. Growth and Income Fund Series II (1)

    SAST SA Large Cap Index Portfolio Class 3 (1)

Lord Abbett Bond Debenture Portfolio Class VC (1)

    SAST SA Large Cap Value Index Portfolio Class 1 (1)

Lord Abbett Fundamental Equity Portfolio Class VC (1)

    SAST SA Large Cap Value Index Portfolio Class 3 (1)

Lord Abbett Growth and Income Portfolio Class VC (1)

    SAST SA MFS Blue Chip Growth Portfolio Class 1 (1)

Lord Abbett Mid Cap Stock Portfolio Class VC (1)

    SAST SA MFS Blue Chip Growth Portfolio Class 2 (1)

Lord Abbett Short Duration Income Portfolio Class VC (1)

    SAST SA MFS Blue Chip Growth Portfolio Class 3 (1)

Morgan Stanley VIF Global Infrastructure Portfolio Class II (1)

    SAST SA MFS Massachusetts Investors Trust Portfolio Class 1 (1)

Neuberger Berman AMT US Equity Index PutWrite Strategy Portfolio Class S (1)

    SAST SA MFS Massachusetts Investors Trust Portfolio Class 2 (1)

PIMCO All Asset Portfolio Advisor Class (1)

    SAST SA MFS Massachusetts Investors Trust Portfolio Class 3 (1)

PIMCO Dynamic Bond Portfolio Advisor Class (1)

    SAST SA MFS Total Return Portfolio Class 1 (1)

PIMCO Emerging Markets Bond Portfolio Advisor Class (1)

    SAST SA MFS Total Return Portfolio Class 2 (1)

PIMCO Total Return Portfolio Advisor Class (1)

    SAST SA MFS Total Return Portfolio Class 3 (1)

PIMCO Total Return Portfolio Institutional Class (1)

    SAST SA Mid Cap Index Portfolio Class 1 (1)

PVC Core Plus Bond Account Class 1 (1)

    SAST SA Mid Cap Index Portfolio Class 3 (1)

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PVC Diversified International Account Class 1 (1)

    SAST SA Morgan Stanley International Equities Portfolio Class 1 (1)

PVC Equity Income Account Class 1 (1)

    SAST SA Morgan Stanley International Equities Portfolio Class 2 (1)

PVC Equity Income Account Class 2 (1)

    SAST SA Morgan Stanley International Equities Portfolio Class 3 (1)

PVC Government & High Quality Bond Account Class 1 (1)

    SAST SA PIMCO RAE International Value Portfolio Class 1 (1)

PVC Large Cap Growth Account I Class 1 (1)

    SAST SA PIMCO RAE International Value Portfolio Class 2 (1)

PVC MidCap Account Class 1 (1)

    SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 3 (1)

PVC MidCap Account Class 2 (1)

    SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1 (1)

PVC Principal Capital Appreciation Account Class 1 (1)

    SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 2 (1)

PVC Principal Capital Appreciation Account Class 2 (1)

    SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 3 (1)

PVC Real Estate Securities Account Class 1 (1)

    SAST SA Franklin Tactical Opportunities Portfolio Class 1 (1)

PVC Real Estate Securities Account Class 2 (1)

    SAST SA Franklin Tactical Opportunities Portfolio Class 3 (1)

PVC SAM Balanced Portfolio Class 1 (1)

    SAST SA Global Index Allocation 60/40 Portfolio Class 1 (1)

PVC SAM Balanced Portfolio Class 2 (1)

    SAST SA Global Index Allocation 60/40 Portfolio Class 3 (1)

PVC SAM Conservative Balanced Portfolio Class 1 (1)

    SAST SA Global Index Allocation 75/25 Portfolio Class 1 (1)

PVC SAM Conservative Balanced Portfolio Class 2 (1)

    SAST SA Global Index Allocation 75/25 Portfolio Class 3 (1)

PVC SAM Conservative Growth Portfolio Class 1 (1)

    SAST SA Global Index Allocation 90/10 Portfolio Class 1 (1)

PVC SAM Conservative Growth Portfolio Class 2 (1)

    SAST SA Global Index Allocation 90/10 Portfolio Class 3 (1)

PVC SAM Flexible Income Portfolio Class 1 (1)

    SAST SA Goldman Sachs Global Bond Portfolio Class 1 (1)

PVC SAM Flexible Income Portfolio Class 2 (1)

    SAST SA Goldman Sachs Global Bond Portfolio Class 2 (1)

PVC SAM Strategic Growth Portfolio Class 1 (1)

    SAST SA Goldman Sachs Global Bond Portfolio Class 3 (1)

PVC SAM Strategic Growth Portfolio Class 2 (1)

    SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 1 (1)

PVC Short-Term Income Account Class 1 (1)

    SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 3 (1)

PVC SmallCap Account Class 1 (1)

    SAST SA Index Allocation 60/40 Portfolio Class 1 (1)

PVC SmallCap Account Class 2 (1)

    SAST SA Index Allocation 60/40 Portfolio Class 3 (1)

SST SA Allocation Balanced Portfolio Class 1 (1)

    SAST SA Index Allocation 80/20 Portfolio Class 1 (1)

SST SA Allocation Balanced Portfolio Class 3 (1)

    SAST SA Index Allocation 80/20 Portfolio Class 3 (1)

SST SA Allocation Growth Portfolio Class 1 (1)

    SAST SA Index Allocation 90/10 Portfolio Class 1 (1)

SST SA Allocation Growth Portfolio Class 3 (1)

    SAST SA Index Allocation 90/10 Portfolio Class 3 (1)

SST SA Allocation Moderate Growth Portfolio Class 1 (1)

    SAST SA International Index Portfolio Class 1 (1)

SST SA Allocation Moderate Growth Portfolio Class 3 (1)

    SAST SA International Index Portfolio Class 3 (1)

SST SA Allocation Moderate Portfolio Class 1 (1)

    SAST SA Invesco Growth Opportunities Portfolio Class 1 (1)

SST SA Allocation Moderate Portfolio Class 3 (1)

    SAST SA Invesco Growth Opportunities Portfolio Class 2 (1)

SST SA American Century Inflation Protection Portfolio Class 1 (1)

    SAST SA Invesco Growth Opportunities Portfolio Class 3 (1)

SST SA American Century Inflation Protection Portfolio Class 3 (1)

    SAST SA Janus Focused Growth Portfolio Class 1 (1)

SST SA Columbia Focused Value Portfolio Class 3 (1)

    SAST SA Janus Focused Growth Portfolio Class 2 (1)

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3 (1)

    SAST SA Janus Focused Growth Portfolio Class 3 (1)

SST SA Multi-Managed International Equity Portfolio Class 3 (1)

    SAST SA PIMCO RAE International Value Portfolio Class 3 (1)

SST SA Multi-Managed Large Cap Growth Portfolio Class 3 (1)

    SAST SA PIMCO VCP Tactical Balanced Portfolio Class 1 (1)

SST SA Multi-Managed Large Cap Value Portfolio Class 3 (1)

    SAST SA PIMCO VCP Tactical Balanced Portfolio Class 3 (1)

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3 (1)

    SAST SA PineBridge High-Yield Bond Portfolio Class 1 (1)

SST SA Multi-Managed Mid Cap Value Portfolio Class 3 (1)

    SAST SA PineBridge High-Yield Bond Portfolio Class 2 (1)

SST SA Multi-Managed Small Cap Portfolio Class 3 (1)

    SAST SA PineBridge High-Yield Bond Portfolio Class 3 (1)

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 1 (1)

    SAST SA Putnam International Growth and Income Portfolio Class 1 (1)

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 3 (1)

    SAST SA Putnam International Growth and Income Portfolio Class 2 (1)

SST SA T. Rowe Price Growth Stock Portfolio Class 3 (1)

    SAST SA Putnam International Growth and Income Portfolio Class 3 (1)

SAST SA AB Growth Portfolio Class 1 (1)

    SAST SA Schroders VCP Global Allocation Portfolio Class 1 (1)

SAST SA AB Growth Portfolio Class 2 (1)

    SAST SA Schroders VCP Global Allocation Portfolio Class 3 (1)

SAST SA AB Growth Portfolio Class 3 (1)

    SAST SA Small Cap Index Portfolio Class 1 (1)

SAST SA AB Small & Mid Cap Value Portfolio Class 1 (1)

    SAST SA Small Cap Index Portfolio Class 3 (1)

SAST SA AB Small & Mid Cap Value Portfolio Class 2 (1)

    SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 1 (1)

SAST SA AB Small & Mid Cap Value Portfolio Class 3 (1)

    SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 3 (1)

SAST SA American Funds Asset Allocation Portfolio Class 1 (1)

    SAST SA T. Rowe Price VCP Balanced Portfolio Class 1 (1)

SAST SA American Funds Asset Allocation Portfolio Class 3 (1)

    SAST SA T. Rowe Price VCP Balanced Portfolio Class 3 (1)

SAST SA American Funds Global Growth Portfolio Class 1 (1)

    SAST SA VCP Dynamic Allocation Portfolio Class 1 (1)

SAST SA American Funds Global Growth Portfolio Class 3 (1)

    SAST SA VCP Dynamic Allocation Portfolio Class 3 (1)

SAST SA American Funds Growth Portfolio Class 1 (1)

    SAST SA VCP Dynamic Strategy Portfolio Class 1 (1)

SAST SA American Funds Growth Portfolio Class 3 (1)

    SAST SA VCP Dynamic Strategy Portfolio Class 3 (1)

SAST SA American Funds Growth-Income Portfolio Class 1 (1)

    SAST SA VCP Index Allocation Portfolio Class 1 (1)

SAST SA American Funds Growth-Income Portfolio Class 3 (1)

    SAST SA VCP Index Allocation Portfolio Class 3 (1)

SAST SA American Funds VCP Managed Allocation Portfolio Class 1 (1)

    SAST SA Wellington Capital Appreciation Portfolio Class 1 (1)

SAST SA American Funds VCP Managed Allocation Portfolio Class 3 (1)

    SAST SA Wellington Capital Appreciation Portfolio Class 2 (1)

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 1 (1)

    SAST SA Wellington Capital Appreciation Portfolio Class 3 (1)

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 3 (1)

    SAST SA Wellington Government and Quality Bond Portfolio Class 1 (1)

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 1 (1)

    SAST SA Wellington Government and Quality Bond Portfolio Class 2 (1)

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 3 (1)

    SAST SA Wellington Government and Quality Bond Portfolio Class 3 (1)

SAST SA DFA Ultra Short Bond Portfolio Class 1 (1)

    SAST SA Wellington Strategic Multi-Asset Portfolio Class 1 (1)

SAST SA DFA Ultra Short Bond Portfolio Class 2 (1)

    SAST SA Wellington Strategic Multi-Asset Portfolio Class 3 (1)

SAST SA DFA Ultra Short Bond Portfolio Class 3 (1)

    VALIC Company I International Equities Index Fund (1)

SAST SA Emerging Markets Equity Index Portfolio Class 1 (1)

    VALIC Company I International Socially Responsible Fund (1)

SAST SA Emerging Markets Equity Index Portfolio Class 3 (1)

    VALIC Company I Mid Cap Index Fund (1)

SAST SA Federated Hermes Corporate Bond Portfolio Class 1 (1)

    VALIC Company I Nasdaq-100 Index Fund (1)

SAST SA Federated Hermes Corporate Bond Portfolio Class 2 (1)

    VALIC Company I Small Cap Index Fund (1)

SAST SA Federated Hermes Corporate Bond Portfolio Class 3 (1)

    VALIC Company I Stock Index Fund (1)

(1)

    Statement of Operations and Changes in Net Assets for the years ended December 31, 2023 and 2022

 

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Basis for Opinions

These financial statements are the responsibility of American General Life Insurance Company management. Our responsibility is to express an opinion on the financial statements of each of the sub-accounts of Variable Separate Account based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to each of the sub-accounts of Variable Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of investments owned as of December 31, 2023 by correspondence with the transfer agents of the investee mutual funds and the custodians. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Houston, Texas

April 23, 2024

We have served as the auditor of one or more of the sub-accounts of AIG Life and Retirement Separate Account Group since at least 1994. We have not been able to determine the specific year we began serving as auditor.

 

 

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VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2023

 

             
Sub-accounts    Investments at
Fair Value		     

Due from

(to)

General
Account,

Net

      Net Assets      Contract
Owners -
Annuity
Reserves		      Contract Owners
- Accumulation
Reserves		      Net Assets
Attributable to
Contract Owner
Reserves		  

American Funds IS American High-Income Trust Class 3

    $   8,336,018      $      —      $   8,336,018      $   227,508      $   8,108,510      $   8,336,018  

American Funds IS Asset Allocation Fund Class 2

      46,348,594        —        46,348,594        373,084        45,975,510        46,348,594  

American Funds IS Asset Allocation Fund Class 3

      29,982,685        —        29,982,685        721,282        29,261,403        29,982,685  

American Funds IS Capital Income Builder Class 4

      2,731,185        —        2,731,185        —        2,731,185        2,731,185  

American Funds IS Global Growth Fund Class 2

      144,415,664        —        144,415,664        2,116,172        142,299,492        144,415,664  

American Funds IS Growth Fund Class 2

      290,362,249        628        290,362,877        3,708,577        286,654,300        290,362,877  

American Funds IS Growth Fund Class 3

      236,114,254        —        236,114,254        10,308,032        225,806,222        236,114,254  

American Funds IS Growth-Income Fund Class 2

      229,502,280        —        229,502,280        3,115,037        226,387,243        229,502,280  

American Funds IS Growth-Income Fund Class 3

      141,817,300        —        141,817,300        4,444,194        137,373,106        141,817,300  

American Funds IS International Fund Class 3

      16,519,604        —        16,519,604        677,497        15,842,107        16,519,604  

American Funds IS U.S. Government Securities Fund Class 3

      5,897,074        —        5,897,074        60,227        5,836,847        5,897,074  

American Funds IS Ultra-Short Bond Fund Class 3

      4,267,706        —        4,267,706        56,979        4,210,727        4,267,706  

BlackRock 60/40 Target Allocation ETF V.I. Fund Class III

      383,529        —        383,529        —        383,529        383,529  

BlackRock Global Allocation V.I. Fund Class III

      589,977        —        589,977        —        589,977        589,977  

Columbia VP Dividend Opportunity Fund Class 1

      1,527,234        —        1,527,234        —        1,527,234        1,527,234  

Columbia VP Emerging Markets Bond Fund Class 2

      76,520        —        76,520        —        76,520        76,520  

Columbia VP Income Opportunities Fund Class 1

      5,800,141        —        5,800,141        37,958        5,762,183        5,800,141  

Columbia VP Large Cap Growth Fund Class 1

      21,246,132        —        21,246,132        222,384        21,023,748        21,246,132  

Columbia VP Limited Duration Credit Fund Class 2

      230,079        —        230,079        —        230,079        230,079  

Columbia VP Overseas Core Fund Class 2

      1,188,110        —        1,188,110        —        1,188,110        1,188,110  

Columbia VP Select Mid Cap Growth Opportunity Fund Class 1

      328,775        —        328,775        —        328,775        328,775  

Columbia VP Small Company Growth Fund Class 1

      330,340        —        330,340        24,917        305,423        330,340  

CTIVP® Principal Blue Chip Growth Fund Class 1

      1,724,732        —        1,724,732        26,542        1,698,190        1,724,732  

Delaware Ivy VIP Asset Strategy Class II

      191,066        —        191,066        —        191,066        191,066  

FTVIP Franklin Allocation VIP Fund Class 1

      15,746        —        15,746        —        15,746        15,746  

FTVIP Franklin Allocation VIP Fund Class 2

      31,291,752        —        31,291,752        33,301        31,258,451        31,291,752  

FTVIP Franklin Income VIP Fund Class 1

      1,056,491        —        1,056,491        —        1,056,491        1,056,491  

FTVIP Franklin Income VIP Fund Class 2

      132,777,279        —        132,777,279        215,658        132,561,621        132,777,279  

FTVIP Franklin Strategic Income VIP Fund Class 2

      1,007,898        —        1,007,898        —        1,007,898        1,007,898  

Goldman Sachs VIT Government Money Market Fund Institutional Shares

      10,187,808        —        10,187,808        222,219        9,965,589        10,187,808  

Goldman Sachs VIT Government Money Market Fund Service Shares

      315,699,258        —        315,699,258        624,109        315,075,149        315,699,258  

Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Advisor Shares

      286,612        —        286,612        —        286,612        286,612  

Goldman Sachs VIT Trend Driven Allocation Fund Service Shares

      17,542        —        17,542        —        17,542        17,542  

Invesco V.I. American Franchise Fund Series I

      59,874        —        59,874        —        59,874        59,874  

Invesco V.I. American Franchise Fund Series II

      122,814,939        —        122,814,939        103,351        122,711,588        122,814,939  

Invesco V.I. Balanced-Risk Allocation Fund Series II

      579,123        —        579,123        —        579,123        579,123  

Invesco V.I. Comstock Fund Series I

      854,543        —        854,543        —        854,543        854,543  

Invesco V.I. Comstock Fund Series II

      314,962,675        —        314,962,675        1,070,929        313,891,746        314,962,675  

Invesco V.I. Growth and Income Fund Series I

      1,064,759        —        1,064,759        —        1,064,759        1,064,759  

Invesco V.I. Growth and Income Fund Series II

      329,817,801        653        329,818,454        858,012        328,960,442        329,818,454  

Lord Abbett Bond Debenture Portfolio Class VC

      847,107        —        847,107        —        847,107        847,107  

Lord Abbett Fundamental Equity Portfolio Class VC

      50,519        —        50,519        —        50,519        50,519  

Lord Abbett Growth and Income Portfolio Class VC

      140,710,949        590        140,711,539        478,345        140,233,194        140,711,539  

Lord Abbett Mid Cap Stock Portfolio Class VC

      10,836,343        —        10,836,343        121,750        10,714,593        10,836,343  

Lord Abbett Short Duration Income Portfolio Class VC

      1,866,383        —        1,866,383        —        1,866,383        1,866,383  

Morgan Stanley VIF Global Infrastructure Portfolio Class II

      718,761        —        718,761        —        718,761        718,761  

Neuberger Berman AMT US Equity Index PutWrite Strategy Portfolio Class S

      331,856        —        331,856        —        331,856        331,856  

PIMCO All Asset Portfolio Advisor Class

      10,532        —        10,532        —        10,532        10,532  

PIMCO Dynamic Bond Portfolio Advisor Class

      538,447        —        538,447        —        538,447        538,447  

PIMCO Emerging Markets Bond Portfolio Advisor Class

      3,936,703        —        3,936,703        —        3,936,703        3,936,703  

PIMCO Total Return Portfolio Advisor Class

      217,666,112        —        217,666,112        —        217,666,112        217,666,112  

PIMCO Total Return Portfolio Institutional Class

      1,198,544        —        1,198,544        —        1,198,544        1,198,544  

PVC Core Plus Bond Account Class 1

      2,778,868        —        2,778,868        22,213        2,756,655        2,778,868  

PVC Diversified International Account Class 1

      615,068        —        615,068        —        615,068        615,068  

PVC Equity Income Account Class 1

      9,219,700        —        9,219,700        38,538        9,181,162        9,219,700  

PVC Equity Income Account Class 2

      5,578,629        —        5,578,629        —        5,578,629        5,578,629  

PVC Government & High Quality Bond Account Class 1

      1,080,712        —        1,080,712        3,197        1,077,515        1,080,712  

PVC Large Cap Growth Account I Class 1

      1,245,468        —        1,245,468        —        1,245,468        1,245,468  

PVC MidCap Account Class 1

      1,558,244        —        1,558,244        4,203        1,554,041        1,558,244  

PVC MidCap Account Class 2

      558,315        —        558,315        —        558,315        558,315  

PVC Principal Capital Appreciation Account Class 1

      11,090,675        —        11,090,675        31,803        11,058,872        11,090,675  

PVC Principal Capital Appreciation Account Class 2

      1,825,928        —        1,825,928        —        1,825,928        1,825,928  

PVC Real Estate Securities Account Class 1

      351,296        —        351,296        —        351,296        351,296  

PVC Real Estate Securities Account Class 2

      196,993        —        196,993        —        196,993        196,993  

PVC SAM Balanced Portfolio Class 1

      19,932,514        —        19,932,514        2,335        19,930,179        19,932,514  

PVC SAM Balanced Portfolio Class 2

      18,222,782        —        18,222,782        7,189        18,215,593        18,222,782  

PVC SAM Conservative Balanced Portfolio Class 1

      2,084,668        —        2,084,668        43,697        2,040,971        2,084,668  

PVC SAM Conservative Balanced Portfolio Class 2

      1,459,352        —        1,459,352        73,234        1,386,118        1,459,352  

PVC SAM Conservative Growth Portfolio Class 1

      10,401,056        —        10,401,056        162,729        10,238,327        10,401,056  

PVC SAM Conservative Growth Portfolio Class 2

      11,226,758        —        11,226,758        597,193        10,629,565        11,226,758  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

4

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2023

 

             
Sub-accounts    Investments at
Fair Value		     

Due from

(to)

General
Account,

Net

     Net Assets      Contract
Owners -
Annuity
Reserves		      Contract Owners
- Accumulation
Reserves		      Net Assets
Attributable to
Contract Owner
Reserves		  

PVC SAM Flexible Income Portfolio Class 1

    $   1,987,633      $      —     $   1,987,633      $   16,093      $   1,971,540      $   1,987,633  

PVC SAM Flexible Income Portfolio Class 2

      2,547,659        —       2,547,659        9,754        2,537,905        2,547,659  

PVC SAM Strategic Growth Portfolio Class 1

      3,148,320        —       3,148,320        —        3,148,320        3,148,320  

PVC SAM Strategic Growth Portfolio Class 2

      4,440,550        —       4,440,550        —        4,440,550        4,440,550  

PVC Short-Term Income Account Class 1

      745,516        —       745,516        25,254        720,262        745,516  

PVC SmallCap Account Class 1

      352,200        —       352,200        1,240        350,960        352,200  

PVC SmallCap Account Class 2

      215,744        —       215,744        —        215,744        215,744  

SST SA Allocation Balanced Portfolio Class 1

      37,066        —       37,066        —        37,066        37,066  

SST SA Allocation Balanced Portfolio Class 3

      149,389,773        —       149,389,773        13,703        149,376,070        149,389,773  

SST SA Allocation Growth Portfolio Class 1

      1,114,384        —       1,114,384        —        1,114,384        1,114,384  

SST SA Allocation Growth Portfolio Class 3

      277,270,186        —       277,270,186        13,877        277,256,309        277,270,186  

SST SA Allocation Moderate Growth Portfolio Class 1

      341,693        —       341,693        —        341,693        341,693  

SST SA Allocation Moderate Growth Portfolio Class 3

      224,799,270        —       224,799,270        1,847        224,797,423        224,799,270  

SST SA Allocation Moderate Portfolio Class 1

      205,411        —       205,411        —        205,411        205,411  

SST SA Allocation Moderate Portfolio Class 3

      174,326,977        —       174,326,977        15,436        174,311,541        174,326,977  

SST SA American Century Inflation Protection Portfolio Class 1

      168,881        —       168,881        —        168,881        168,881  

SST SA American Century Inflation Protection Portfolio Class 3

      276,216,043        —       276,216,043        38,599        276,177,444        276,216,043  

SST SA Columbia Focused Value Portfolio Class 3

      22,090        —       22,090        —        22,090        22,090  

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3

      164,907        —       164,907        —        164,907        164,907  

SST SA Multi-Managed International Equity Portfolio Class 3

      279,330        —       279,330        —        279,330        279,330  

SST SA Multi-Managed Large Cap Growth Portfolio Class 3

      649,113        —       649,113        —        649,113        649,113  

SST SA Multi-Managed Large Cap Value Portfolio Class 3

      174,033        —       174,033        —        174,033        174,033  

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3

      229,003        —       229,003        —        229,003        229,003  

SST SA Multi-Managed Mid Cap Value Portfolio Class 3

      297,291        —       297,291        —        297,291        297,291  

SST SA Multi-Managed Small Cap Portfolio Class 3

      171,611        —       171,611        —        171,611        171,611  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 1

      493,406        —       493,406        —        493,406        493,406  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 3

      97,922,305        —       97,922,305        —        97,922,305        97,922,305  

SST SA T. Rowe Price Growth Stock Portfolio Class 3

      376,248        —       376,248        —        376,248        376,248  

SAST SA AB Growth Portfolio Class 1

      419,761,554        —       419,761,554        7,950,762        411,810,792        419,761,554  

SAST SA AB Growth Portfolio Class 2

      47,971,711        —       47,971,711        320,154        47,651,557        47,971,711  

SAST SA AB Growth Portfolio Class 3

      502,271,679        (162 )      502,271,517        1,989,289        500,282,228        502,271,517  

SAST SA AB Small & Mid Cap Value Portfolio Class 1

      926,997        —       926,997        —        926,997        926,997  

SAST SA AB Small & Mid Cap Value Portfolio Class 2

      8,948,981        6,885       8,955,866        90,929        8,864,937        8,955,866  

SAST SA AB Small & Mid Cap Value Portfolio Class 3

      321,323,270        846       321,324,116        578,472        320,745,644        321,324,116  

SAST SA American Funds Asset Allocation Portfolio Class 1

      8,007,409        —       8,007,409        —        8,007,409        8,007,409  

SAST SA American Funds Asset Allocation Portfolio Class 3

      1,597,031,887        —       1,597,031,887        305,116        1,596,726,771        1,597,031,887  

SAST SA American Funds Global Growth Portfolio Class 1

      1,398,121        —       1,398,121        —        1,398,121        1,398,121  

SAST SA American Funds Global Growth Portfolio Class 3

      349,246,435        —       349,246,435        283,732        348,962,703        349,246,435  

SAST SA American Funds Growth Portfolio Class 1

      4,403,486        —       4,403,486        —        4,403,486        4,403,486  

SAST SA American Funds Growth Portfolio Class 3

      821,411,071        —       821,411,071        282,188        821,128,883        821,411,071  

SAST SA American Funds Growth-Income Portfolio Class 1

      2,406,761        —       2,406,761        —        2,406,761        2,406,761  

SAST SA American Funds Growth-Income Portfolio Class 3

      392,742,058        —       392,742,058        1,796,969        390,945,089        392,742,058  

SAST SA American Funds VCP Managed Allocation Portfolio Class 1

      820,820        —       820,820        —        820,820        820,820  

SAST SA American Funds VCP Managed Allocation Portfolio Class 3

      1,624,260,974        —       1,624,260,974        1,116,897        1,623,144,077        1,624,260,974  

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 1

      212,225        —       212,225        —        212,225        212,225  

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 3

      47,144,259        —       47,144,259        —        47,144,259        47,144,259  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 1

      404,560        —       404,560        —        404,560        404,560  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 3

      589,121,744        —       589,121,744        47,118        589,074,626        589,121,744  

SAST SA DFA Ultra Short Bond Portfolio Class 1

      19,433,316        —       19,433,316        857,502        18,575,814        19,433,316  

SAST SA DFA Ultra Short Bond Portfolio Class 2

      6,694,276        (78 )      6,694,198        1,204,716        5,489,482        6,694,198  

SAST SA DFA Ultra Short Bond Portfolio Class 3

      175,593,096        —       175,593,096        3,752,115        171,840,981        175,593,096  

SAST SA Emerging Markets Equity Index Portfolio Class 1

      187,115        —       187,115        —        187,115        187,115  

SAST SA Emerging Markets Equity Index Portfolio Class 3

      15,910,282        —       15,910,282        —        15,910,282        15,910,282  

SAST SA Federated Hermes Corporate Bond Portfolio Class 1

      34,662,124        —       34,662,124        475,924        34,186,200        34,662,124  

SAST SA Federated Hermes Corporate Bond Portfolio Class 2

      10,499,219        1,567       10,500,786        240,725        10,260,061        10,500,786  

SAST SA Federated Hermes Corporate Bond Portfolio Class 3

      751,232,474        572       751,233,046        511,046        750,722,000        751,233,046  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 1

      380,363        —       380,363        —        380,363        380,363  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 3

      12,321,355        —       12,321,355        —        12,321,355        12,321,355  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1

      14,032,537        —       14,032,537        220,204        13,812,333        14,032,537  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 2

      3,072,833        —       3,072,833        1,346        3,071,487        3,072,833  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 3

      125,962,031        336       125,962,367        239,180        125,723,187        125,962,367  

SAST SA Fixed Income Index Portfolio Class 1

      51,337        —       51,337        —        51,337        51,337  

SAST SA Fixed Income Index Portfolio Class 3

      72,694,238        —       72,694,238        78,983        72,615,255        72,694,238  

SAST SA Fixed Income Intermediate Index Portfolio Class 1

      32,753        —       32,753        —        32,753        32,753  

SAST SA Fixed Income Intermediate Index Portfolio Class 3

      36,403,641        —       36,403,641        46,019        36,357,622        36,403,641  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1

      265,072,079        —       265,072,079        3,928,664        261,143,415        265,072,079  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 2

      37,810,840        7,446       37,818,286        387,545        37,430,741        37,818,286  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 3

      316,403,982        —       316,403,982        827,939        315,576,043        316,403,982  

SAST SA Franklin Small Company Value Portfolio Class 1

      138,512        —       138,512        —        138,512        138,512  

SAST SA Franklin Small Company Value Portfolio Class 3

      136,486,296        325       136,486,621        64,145        136,422,476        136,486,621  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

5

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2023

 

             
Sub-accounts    Investments at
Fair Value		     

Due from

(to)

General
Account,

Net

     Net Assets      Contract
Owners -
Annuity
Reserves		      Contract Owners
- Accumulation
Reserves		      Net Assets
Attributable to
Contract Owner
Reserves		  

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 1

    $   198,513      $      —     $   198,513      $   —      $   198,513      $   198,513  

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 3

      12,375,121        —       12,375,121        —        12,375,121        12,375,121  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1

      19,709,969        —       19,709,969        256,346        19,453,623        19,709,969  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 2

      4,644,023        —       4,644,023        82,122        4,561,901        4,644,023  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 3

      161,415,122        —       161,415,122        9,128        161,405,994        161,415,122  

SAST SA Franklin Tactical Opportunities Portfolio Class 1

      153,306        —       153,306        —        153,306        153,306  

SAST SA Franklin Tactical Opportunities Portfolio Class 3

      77,132,468        —       77,132,468        —        77,132,468        77,132,468  

SAST SA Global Index Allocation 60/40 Portfolio Class 1

      51,039        —       51,039        —        51,039        51,039  

SAST SA Global Index Allocation 60/40 Portfolio Class 3

      64,944,519        —       64,944,519        —        64,944,519        64,944,519  

SAST SA Global Index Allocation 75/25 Portfolio Class 1

      377,710        —       377,710        —        377,710        377,710  

SAST SA Global Index Allocation 75/25 Portfolio Class 3

      70,683,314        —       70,683,314        180,221        70,503,093        70,683,314  

SAST SA Global Index Allocation 90/10 Portfolio Class 1

      4,195,883        —       4,195,883        —        4,195,883        4,195,883  

SAST SA Global Index Allocation 90/10 Portfolio Class 3

      259,482,336        —       259,482,336        —        259,482,336        259,482,336  

SAST SA Goldman Sachs Global Bond Portfolio Class 1

      11,542,525        —       11,542,525        135,898        11,406,627        11,542,525  

SAST SA Goldman Sachs Global Bond Portfolio Class 2

      2,858,895        —       2,858,895        78,232        2,780,663        2,858,895  

SAST SA Goldman Sachs Global Bond Portfolio Class 3

      176,306,380        —       176,306,380        94,224        176,212,156        176,306,380  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 1

      6,332        —       6,332        —        6,332        6,332  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 3

      30,061,501        —       30,061,501        —        30,061,501        30,061,501  

SAST SA Index Allocation 60/40 Portfolio Class 1

      354,489        —       354,489        —        354,489        354,489  

SAST SA Index Allocation 60/40 Portfolio Class 3

      183,591,502        —       183,591,502        36,515        183,554,987        183,591,502  

SAST SA Index Allocation 80/20 Portfolio Class 1

      3,149,099        —       3,149,099        —        3,149,099        3,149,099  

SAST SA Index Allocation 80/20 Portfolio Class 3

      350,102,870        —       350,102,870        493,076        349,609,794        350,102,870  

SAST SA Index Allocation 90/10 Portfolio Class 1

      8,251,963        —       8,251,963        —        8,251,963        8,251,963  

SAST SA Index Allocation 90/10 Portfolio Class 3

      982,436,804        —       982,436,804        10,124        982,426,680        982,436,804  

SAST SA International Index Portfolio Class 1

      1,237,364        —       1,237,364        —        1,237,364        1,237,364  

SAST SA International Index Portfolio Class 3

      24,369,241        —       24,369,241        73,343        24,295,898        24,369,241  

SAST SA Invesco Growth Opportunities Portfolio Class 1

      6,657,277        —       6,657,277        52,438        6,604,839        6,657,277  

SAST SA Invesco Growth Opportunities Portfolio Class 2

      2,454,184        —       2,454,184        43,419        2,410,765        2,454,184  

SAST SA Invesco Growth Opportunities Portfolio Class 3

      118,232,347        —       118,232,347        32,598        118,199,749        118,232,347  

SAST SA Janus Focused Growth Portfolio Class 1

      14,807,099        —       14,807,099        137,607        14,669,492        14,807,099  

SAST SA Janus Focused Growth Portfolio Class 2

      7,854,945        —       7,854,945        68,244        7,786,701        7,854,945  

SAST SA Janus Focused Growth Portfolio Class 3

      130,910,041        —       130,910,041        93,567        130,816,474        130,910,041  

SAST SA JPMorgan Diversified Balanced Portfolio Class 1

      98,522,341        —       98,522,341        2,443,099        96,079,242        98,522,341  

SAST SA JPMorgan Diversified Balanced Portfolio Class 2

      18,185,518        (505 )      18,185,013        280,440        17,904,573        18,185,013  

SAST SA JPMorgan Diversified Balanced Portfolio Class 3

      196,446,780        —       196,446,780        186,228        196,260,552        196,446,780  

SAST SA JPMorgan Emerging Markets Portfolio Class 1

      11,602,797        —       11,602,797        123,807        11,478,990        11,602,797  

SAST SA JPMorgan Emerging Markets Portfolio Class 2

      2,234,311        —       2,234,311        16,418        2,217,893        2,234,311  

SAST SA JPMorgan Emerging Markets Portfolio Class 3

      90,078,196        67       90,078,263        134,299        89,943,964        90,078,263  

SAST SA JPMorgan Equity-Income Portfolio Class 1

      104,992,283        —       104,992,283        1,517,637        103,474,646        104,992,283  

SAST SA JPMorgan Equity-Income Portfolio Class 2

      9,289,921        —       9,289,921        43,080        9,246,841        9,289,921  

SAST SA JPMorgan Equity-Income Portfolio Class 3

      220,254,028        —       220,254,028        348,551        219,905,477        220,254,028  

SAST SA JPMorgan Global Equities Portfolio Class 1

      32,552,168        —       32,552,168        408,137        32,144,031        32,552,168  

SAST SA JPMorgan Global Equities Portfolio Class 2

      2,552,760        —       2,552,760        39,003        2,513,757        2,552,760  

SAST SA JPMorgan Global Equities Portfolio Class 3

      40,499,262        —       40,499,262        57,508        40,441,754        40,499,262  

SAST SA JPMorgan Large Cap Core Portfolio Class 1

      23,269,416        —       23,269,416        691,529        22,577,887        23,269,416  

SAST SA JPMorgan Large Cap Core Portfolio Class 2

      3,289,821        —       3,289,821        51,227        3,238,594        3,289,821  

SAST SA JPMorgan Large Cap Core Portfolio Class 3

      69,049,123        —       69,049,123        194,272        68,854,851        69,049,123  

SAST SA JPMorgan MFS Core Bond Portfolio Class 1

      28,697,011        —       28,697,011        914,366        27,782,645        28,697,011  

SAST SA JPMorgan MFS Core Bond Portfolio Class 2

      5,561,415        —       5,561,415        86,980        5,474,435        5,561,415  

SAST SA JPMorgan MFS Core Bond Portfolio Class 3

      574,432,497        —       574,432,497        225,908        574,206,589        574,432,497  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1

      60,467,720        —       60,467,720        952,588        59,515,132        60,467,720  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 2

      14,730,970        —       14,730,970        44,501        14,686,469        14,730,970  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 3

      303,046,413        —       303,046,413        180,032        302,866,381        303,046,413  

SAST SA Large Cap Growth Index Portfolio Class 1

      928,374        —       928,374        —        928,374        928,374  

SAST SA Large Cap Growth Index Portfolio Class 3

      42,231,707        —       42,231,707        9,485        42,222,222        42,231,707  

SAST SA Large Cap Index Portfolio Class 1

      3,577,521        —       3,577,521        —        3,577,521        3,577,521  

SAST SA Large Cap Index Portfolio Class 3

      89,600,035        —       89,600,035        226,363        89,373,672        89,600,035  

SAST SA Large Cap Value Index Portfolio Class 1

      559,249        —       559,249        —        559,249        559,249  

SAST SA Large Cap Value Index Portfolio Class 3

      50,705,716        —       50,705,716        11,363        50,694,353        50,705,716  

SAST SA MFS Blue Chip Growth Portfolio Class 1

      9,464,669        —       9,464,669        82,423        9,382,246        9,464,669  

SAST SA MFS Blue Chip Growth Portfolio Class 2

      3,049,258        —       3,049,258        —        3,049,258        3,049,258  

SAST SA MFS Blue Chip Growth Portfolio Class 3

      132,058,477        —       132,058,477        194,436        131,864,041        132,058,477  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 1

      40,336,696        —       40,336,696        1,107,957        39,228,739        40,336,696  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 2

      6,275,121        —       6,275,121        41,658        6,233,463        6,275,121  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 3

      184,841,602        —       184,841,602        148,879        184,692,723        184,841,602  

SAST SA MFS Total Return Portfolio Class 1

      82,542,643        —       82,542,643        1,086,835        81,455,808        82,542,643  

SAST SA MFS Total Return Portfolio Class 2

      17,477,090        —       17,477,090        105,011        17,372,079        17,477,090  

SAST SA MFS Total Return Portfolio Class 3

      203,792,880        —       203,792,880        576,625        203,216,255        203,792,880  

SAST SA Mid Cap Index Portfolio Class 1

      634,394        —       634,394        —        634,394        634,394  

SAST SA Mid Cap Index Portfolio Class 3

      63,109,847        —       63,109,847        —        63,109,847        63,109,847  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

6

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2023

 

             
Sub-accounts    Investments at
Fair Value		     

Due from

(to)

General
Account,

Net

      Net Assets      Contract
Owners -
Annuity
Reserves		      Contract Owners
- Accumulation
Reserves		      Net Assets
Attributable to
Contract Owner
Reserves		  

SAST SA Morgan Stanley International Equities Portfolio Class 1

    $   19,891,773      $      —      $   19,891,773      $   360,714      $   19,531,059      $   19,891,773  

SAST SA Morgan Stanley International Equities Portfolio Class 2

      5,929,755        —        5,929,755        83,168        5,846,587        5,929,755  

SAST SA Morgan Stanley International Equities Portfolio Class 3

      89,620,832        174        89,621,006        117,729        89,503,277        89,621,006  

SAST SA PIMCO RAE International Value Portfolio Class 1

      122,721        —        122,721        —        122,721        122,721  

SAST SA PIMCO RAE International Value Portfolio Class 2

      7,799,966        —        7,799,966        93,465        7,706,501        7,799,966  

SAST SA PIMCO RAE International Value Portfolio Class 3

      244,245,523        —        244,245,523        290,006        243,955,517        244,245,523  

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 1

      49,517        —        49,517        —        49,517        49,517  

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 3

      829,333,488        —        829,333,488        104,840        829,228,648        829,333,488  

SAST SA PineBridge High-Yield Bond Portfolio Class 1

      24,813,513        —        24,813,513        384,457        24,429,056        24,813,513  

SAST SA PineBridge High-Yield Bond Portfolio Class 2

      5,484,706        1,717        5,486,423        103,168        5,383,255        5,486,423  

SAST SA PineBridge High-Yield Bond Portfolio Class 3

      77,925,307        —        77,925,307        235,167        77,690,140        77,925,307  

SAST SA Putnam International Growth and Income Portfolio Class 1

      19,803,622        —        19,803,622        244,279        19,559,343        19,803,622  

SAST SA Putnam International Growth and Income Portfolio Class 2

      4,739,973        —        4,739,973        5,395        4,734,578        4,739,973  

SAST SA Putnam International Growth and Income Portfolio Class 3

      80,469,465        365        80,469,830        155,856        80,313,974        80,469,830  

SAST SA Schroders VCP Global Allocation Portfolio Class 1

      258,457        —        258,457        —        258,457        258,457  

SAST SA Schroders VCP Global Allocation Portfolio Class 3

      397,346,252        —        397,346,252        7,499        397,338,753        397,346,252  

SAST SA Small Cap Index Portfolio Class 1

      591,746        —        591,746        —        591,746        591,746  

SAST SA Small Cap Index Portfolio Class 3

      52,233,727        —        52,233,727        64,581        52,169,146        52,233,727  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 1

      543,699        —        543,699        —        543,699        543,699  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 3

      432,086,938        —        432,086,938        —        432,086,938        432,086,938  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 1

      248,799        —        248,799        —        248,799        248,799  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 3

      1,167,348,192        —        1,167,348,192        131,118        1,167,217,074        1,167,348,192  

SAST SA VCP Dynamic Allocation Portfolio Class 1

      518,327        —        518,327        —        518,327        518,327  

SAST SA VCP Dynamic Allocation Portfolio Class 3

      5,992,757,449        —        5,992,757,449        1,617,478        5,991,139,971        5,992,757,449  

SAST SA VCP Dynamic Strategy Portfolio Class 1

      718,731        —        718,731        —        718,731        718,731  

SAST SA VCP Dynamic Strategy Portfolio Class 3

      4,659,394,020        —        4,659,394,020        666,438        4,658,727,582        4,659,394,020  

SAST SA VCP Index Allocation Portfolio Class 1

      527,346        —        527,346        —        527,346        527,346  

SAST SA VCP Index Allocation Portfolio Class 3

      409,278,449        —        409,278,449        3,086        409,275,363        409,278,449  

SAST SA Wellington Capital Appreciation Portfolio Class 1

      343,827,507        —        343,827,507        5,148,867        338,678,640        343,827,507  

SAST SA Wellington Capital Appreciation Portfolio Class 2

      44,965,351        22,718        44,988,069        791,338        44,196,731        44,988,069  

SAST SA Wellington Capital Appreciation Portfolio Class 3

      994,324,274        —        994,324,274        3,441,486        990,882,788        994,324,274  

SAST SA Wellington Government and Quality Bond Portfolio Class 1

      40,621,827        —        40,621,827        619,289        40,002,538        40,621,827  

SAST SA Wellington Government and Quality Bond Portfolio Class 2

      13,709,544        904        13,710,448        209,157        13,501,291        13,710,448  

SAST SA Wellington Government and Quality Bond Portfolio Class 3

      360,542,858        432        360,543,290        898,642        359,644,648        360,543,290  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 1

      11,059,022        —        11,059,022        391,515        10,667,507        11,059,022  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 3

      117,161,305        —        117,161,305        64,198        117,097,107        117,161,305  

VALIC Company I International Equities Index Fund

      4,401,231        —        4,401,231        —        4,401,231        4,401,231  

VALIC Company I International Socially Responsible Fund

      1,054,525        —        1,054,525        —        1,054,525        1,054,525  

VALIC Company I Mid Cap Index Fund

      3,916,509        —        3,916,509        —        3,916,509        3,916,509  

VALIC Company I Nasdaq-100 Index Fund

      3,743,837        —        3,743,837        —        3,743,837        3,743,837  

VALIC Company I Small Cap Index Fund

      2,897,663        —        2,897,663        —        2,897,663        2,897,663  

VALIC Company I Stock Index Fund

      12,066,957        —        12,066,957        —        12,066,957        12,066,957  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

7

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2023

 

           
Sub-accounts     Shares      

Net Asset Value

per Share

     

Shares at Fair

Value

     

Cost of Shares

Held

       Level* 

American Funds IS American High-Income Trust Class 3

      927,255      $ 8.99      $ 8,336,018      $ 9,175,701      1

American Funds IS Asset Allocation Fund Class 2

      1,969,766        23.53        46,348,594        45,466,125      1

American Funds IS Asset Allocation Fund Class 3

      1,254,506        23.90        29,982,685        28,771,316      1

American Funds IS Capital Income Builder Class 4

      235,447        11.60        2,731,185        2,402,880      1

American Funds IS Global Growth Fund Class 2

      4,318,650        33.44        144,415,664        128,413,368      1

American Funds IS Growth Fund Class 2

      2,956,846        98.20        290,362,249        247,977,311      1

American Funds IS Growth Fund Class 3

      2,348,461        100.54        236,114,254        192,368,606      1

American Funds IS Growth-Income Fund Class 2

      3,936,574        58.30        229,502,280        191,317,495      1

American Funds IS Growth-Income Fund Class 3

      2,387,497        59.40        141,817,300        114,431,408      1

American Funds IS International Fund Class 3

      940,752        17.56        16,519,604        17,724,619      1

American Funds IS U.S. Government Securities Fund Class 3

      593,267        9.94        5,897,074        7,244,039      1

American Funds IS Ultra-Short Bond Fund Class 3

      383,442        11.13        4,267,706        4,261,949      1

BlackRock 60/40 Target Allocation ETF V.I. Fund Class III

      29,166        13.15        383,529        344,734      1

BlackRock Global Allocation V.I. Fund Class III

      45,278        13.03        589,977        658,712      1

Columbia VP Dividend Opportunity Fund Class 1

      38,920        39.24        1,527,234        670,218      1

Columbia VP Emerging Markets Bond Fund Class 2

      9,748        7.85        76,520        95,104      1

Columbia VP Income Opportunities Fund Class 1

      913,408        6.35        5,800,141        6,533,576      1

Columbia VP Large Cap Growth Fund Class 1

      569,907        37.28        21,246,132        8,841,182      1

Columbia VP Limited Duration Credit Fund Class 2

      24,399        9.43        230,079        234,125      1

Columbia VP Overseas Core Fund Class 2

      89,872        13.22        1,188,110        1,118,775      1

Columbia VP Select Mid Cap Growth Opportunity Fund Class 1

      7,242        45.40        328,775        156,944      1

Columbia VP Small Company Growth Fund Class 1

      28,355        11.65        330,340        292,628      1

CTIVP® Principal Blue Chip Growth Fund Class 1

      29,228        59.01        1,724,732        833,844      1

Delaware Ivy VIP Asset Strategy Class II

      21,811        8.76        191,066        199,355      1

FTVIP Franklin Allocation VIP Fund Class 1

      3,181        4.95        15,746        17,858      1

FTVIP Franklin Allocation VIP Fund Class 2

      6,386,072        4.90        31,291,752        32,510,812      1

FTVIP Franklin Income VIP Fund Class 1

      70,858        14.91        1,056,491        1,153,384      1

FTVIP Franklin Income VIP Fund Class 2

      9,350,513        14.20        132,777,279        139,194,958      1

FTVIP Franklin Strategic Income VIP Fund Class 2

      111,864        9.01        1,007,898        1,138,679      1

Goldman Sachs VIT Government Money Market Fund Institutional Shares

      10,187,808        1.00        10,187,808        10,187,808      1

Goldman Sachs VIT Government Money Market Fund Service Shares

      315,699,258        1.00        315,699,258        315,699,263      1

Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Advisor Shares

      32,422        8.84        286,612        291,963      1

Goldman Sachs VIT Trend Driven Allocation Fund Service Shares

      1,546        11.35        17,542        18,567      1

Invesco V.I. American Franchise Fund Series I

      1,016        58.96        59,874        65,240      1

Invesco V.I. American Franchise Fund Series II

      2,308,118        53.21        122,814,939        138,318,061      1

Invesco V.I. Balanced-Risk Allocation Fund Series II

      68,293        8.48        579,123        670,059      1

Invesco V.I. Comstock Fund Series I

      43,444        19.67        854,543        851,448      1

Invesco V.I. Comstock Fund Series II

      16,085,938        19.58        314,962,675        276,249,772      1

Invesco V.I. Growth and Income Fund Series I

      56,456        18.86        1,064,759        1,058,706      1

Invesco V.I. Growth and Income Fund Series II

      17,478,421        18.87        329,817,801        315,786,537      1

Lord Abbett Bond Debenture Portfolio Class VC

      82,084        10.32        847,107        978,820      1

Lord Abbett Fundamental Equity Portfolio Class VC

      3,009        16.79        50,519        48,567      1

Lord Abbett Growth and Income Portfolio Class VC

      3,902,134        36.06        140,710,949        131,546,185      1

Lord Abbett Mid Cap Stock Portfolio Class VC

      420,176        25.79        10,836,343        10,004,286      1

Lord Abbett Short Duration Income Portfolio Class VC

      143,237        13.03        1,866,383        2,000,253      1

Morgan Stanley VIF Global Infrastructure Portfolio Class II

      119,000        6.04        718,761        863,518      1

Neuberger Berman AMT US Equity Index PutWrite Strategy Portfolio Class S

      35,192        9.43        331,856        326,715      1

PIMCO All Asset Portfolio Advisor Class

      1,145        9.20        10,532        12,819      1

PIMCO Dynamic Bond Portfolio Advisor Class

      62,033        8.68        538,447        610,273      1

PIMCO Emerging Markets Bond Portfolio Advisor Class

      373,147        10.55        3,936,703        4,071,508      1

PIMCO Total Return Portfolio Advisor Class

      23,710,905        9.18        217,666,112        243,234,094      1

PIMCO Total Return Portfolio Institutional Class

      130,560        9.18        1,198,544        1,253,688      1

PVC Core Plus Bond Account Class 1

      288,564        9.63        2,778,868        3,277,902      1

PVC Diversified International Account Class 1

      39,707        15.49        615,068        389,204      1

PVC Equity Income Account Class 1

      335,140        27.51        9,219,700        8,038,978      1

PVC Equity Income Account Class 2

      205,778        27.11        5,578,629        4,622,175      1

PVC Government & High Quality Bond Account Class 1

      128,351        8.42        1,080,712        1,260,118      1

PVC Large Cap Growth Account I Class 1

      30,813        40.42        1,245,468        1,160,941      1

PVC MidCap Account Class 1

      24,722        63.03        1,558,244        1,356,687      1

PVC MidCap Account Class 2

      9,007        61.99        558,315        502,151      1

PVC Principal Capital Appreciation Account Class 1

      314,183        35.30        11,090,675        8,490,269      1

PVC Principal Capital Appreciation Account Class 2

      52,849        34.55        1,825,928        1,410,071      1

PVC Real Estate Securities Account Class 1

      19,387        18.12        351,296        379,174      1

PVC Real Estate Securities Account Class 2

      10,854        18.15        196,993        216,680      1

PVC SAM Balanced Portfolio Class 1

      1,447,532        13.77        19,932,514        20,327,264      1

PVC SAM Balanced Portfolio Class 2

      1,347,839        13.52        18,222,782        19,319,592      1

 

* Represents the level within the fair value hierarchy under which the portfolio is classified as defined in ASC 820 and described in Note 3 to the financial statements.

The accompanying Notes to Financial Statements are an integral part of this statement.

 

8

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2023

 

           
Sub-accounts     Shares      

Net Asset Value

per Share

     

Shares at Fair

Value

     

Cost of Shares

Held

       Level* 

PVC SAM Conservative Balanced Portfolio Class 1

      188,658      $ 11.05      $ 2,084,668      $ 2,212,812      1

PVC SAM Conservative Balanced Portfolio Class 2

      134,379        10.86        1,459,352        1,580,236      1

PVC SAM Conservative Growth Portfolio Class 1

      530,125        19.62        10,401,056        9,445,465      1

PVC SAM Conservative Growth Portfolio Class 2

      584,423        19.21        11,226,758        10,596,795      1

PVC SAM Flexible Income Portfolio Class 1

      184,896        10.75        1,987,633        2,147,372      1

PVC SAM Flexible Income Portfolio Class 2

      240,345        10.60        2,547,659        2,818,915      1

PVC SAM Strategic Growth Portfolio Class 1

      137,601        22.88        3,148,320        2,637,027      1

PVC SAM Strategic Growth Portfolio Class 2

      197,974        22.43        4,440,550        3,833,817      1

PVC Short-Term Income Account Class 1

      298,207        2.50        745,516        760,662      1

PVC SmallCap Account Class 1

      23,449        15.02        352,200        339,149      1

PVC SmallCap Account Class 2

      14,489        14.89        215,744        210,666      1

SST SA Allocation Balanced Portfolio Class 1

      4,179        8.87        37,066        44,325      1

SST SA Allocation Balanced Portfolio Class 3

      16,823,173        8.88        149,389,773        168,181,844      1

SST SA Allocation Growth Portfolio Class 1

      80,752        13.80        1,114,384        1,168,576      1

SST SA Allocation Growth Portfolio Class 3

      20,223,938        13.71        277,270,186        294,131,873      1

SST SA Allocation Moderate Growth Portfolio Class 1

      36,120        9.46        341,693        369,740      1

SST SA Allocation Moderate Growth Portfolio Class 3

      23,838,735        9.43        224,799,270        250,208,333      1

SST SA Allocation Moderate Portfolio Class 1

      21,922        9.37        205,411        224,336      1

SST SA Allocation Moderate Portfolio Class 3

      18,664,559        9.34        174,326,977        196,207,736      1

SST SA American Century Inflation Protection Portfolio Class 1

      19,479        8.67        168,881        191,370      1

SST SA American Century Inflation Protection Portfolio Class 3

      32,230,577        8.57        276,216,043        310,345,175      1

SST SA Columbia Focused Value Portfolio Class 3

      1,153        19.16        22,090        22,708      1

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3

      16,425        10.04        164,907        191,316      1

SST SA Multi-Managed International Equity Portfolio Class 3

      32,367        8.63        279,330        292,225      1

SST SA Multi-Managed Large Cap Growth Portfolio Class 3

      60,552        10.72        649,113        862,883      1

SST SA Multi-Managed Large Cap Value Portfolio Class 3

      13,512        12.88        174,033        200,010      1

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3

      23,415        9.78        229,003        317,097      1

SST SA Multi-Managed Mid Cap Value Portfolio Class 3

      18,733        15.87        297,291        305,595      1

SST SA Multi-Managed Small Cap Portfolio Class 3

      17,476        9.82        171,611        204,804      1

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 1

      40,879        12.07        493,406        484,920      1

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 3

      8,153,398        12.01        97,922,305        99,354,331      1

SST SA T. Rowe Price Growth Stock Portfolio Class 3

      21,964        17.13        376,248        442,844      1

SAST SA AB Growth Portfolio Class 1

      7,682,312        54.64        419,761,554        362,800,673      1

SAST SA AB Growth Portfolio Class 2

      899,020        53.36        47,971,711        42,726,231      1

SAST SA AB Growth Portfolio Class 3

      9,692,622        51.82        502,271,679        498,498,681      1

SAST SA AB Small & Mid Cap Value Portfolio Class 1

      72,478        12.79        926,997        1,016,387      1

SAST SA AB Small & Mid Cap Value Portfolio Class 2

      699,686        12.79        8,948,981        9,725,206      1

SAST SA AB Small & Mid Cap Value Portfolio Class 3

      25,542,390        12.58        321,323,270        319,296,998      1

SAST SA American Funds Asset Allocation Portfolio Class 1

      531,348        15.07        8,007,409        8,359,734      1

SAST SA American Funds Asset Allocation Portfolio Class 3

      106,539,819        14.99        1,597,031,887        1,602,500,256      1

SAST SA American Funds Global Growth Portfolio Class 1

      126,298        11.07        1,398,121        1,585,868      1

SAST SA American Funds Global Growth Portfolio Class 3

      31,606,012        11.05        349,246,435        352,369,625      1

SAST SA American Funds Growth Portfolio Class 1

      326,668        13.48        4,403,486        3,861,564      1

SAST SA American Funds Growth Portfolio Class 3

      61,207,978        13.42        821,411,071        832,804,317      1

SAST SA American Funds Growth-Income Portfolio Class 1

      191,927        12.54        2,406,761        2,323,236      1

SAST SA American Funds Growth-Income Portfolio Class 3

      31,494,953        12.47        392,742,058        361,328,731      1

SAST SA American Funds VCP Managed Allocation Portfolio Class 1

      54,758        14.99        820,820        849,426      1

SAST SA American Funds VCP Managed Allocation Portfolio Class 3

      108,791,760        14.93        1,624,260,974        1,523,103,370      1

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 1

      13,613        15.59        212,225        196,205      1

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 3

      3,031,785        15.55        47,144,259        48,050,620      1

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 1

      41,493        9.75        404,560        465,240      1

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 3

      60,671,652        9.71        589,121,744        656,822,063      1

SAST SA DFA Ultra Short Bond Portfolio Class 1

      1,829,879        10.62        19,433,316        19,182,764      1

SAST SA DFA Ultra Short Bond Portfolio Class 2

      639,988        10.46        6,694,276        6,630,943      1

SAST SA DFA Ultra Short Bond Portfolio Class 3

      16,981,924        10.34        175,593,096        172,825,706      1

SAST SA Emerging Markets Equity Index Portfolio Class 1

      13,618        13.74        187,115        193,034      1

SAST SA Emerging Markets Equity Index Portfolio Class 3

      1,166,443        13.64        15,910,282        17,577,685      1

SAST SA Federated Hermes Corporate Bond Portfolio Class 1

      2,995,862        11.57        34,662,124        39,315,105      1

SAST SA Federated Hermes Corporate Bond Portfolio Class 2

      906,668        11.58        10,499,219        12,031,912      1

SAST SA Federated Hermes Corporate Bond Portfolio Class 3

      65,495,421        11.47        751,232,474        842,205,931      1

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 1

      22,140        17.18        380,363        360,520      1

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 3

      722,660        17.05        12,321,355        12,118,082      1

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1

      1,164,526        12.05        14,032,537        14,922,776      1

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 2

      255,431        12.03        3,072,833        2,944,793      1

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 3

      10,576,157        11.91        125,962,031        130,495,076      1

SAST SA Fixed Income Index Portfolio Class 1

      5,410        9.49        51,337        52,813      1

 

* Represents the level within the fair value hierarchy under which the portfolio is classified as defined in ASC 820 and described in Note 3 to the financial statements.

The accompanying Notes to Financial Statements are an integral part of this statement.

 

9

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2023

 

           
Sub-accounts     Shares      

Net Asset Value

per Share

     

Shares at Fair

Value

     

Cost of Shares

Held

       Level* 

SAST SA Fixed Income Index Portfolio Class 3

      7,708,827      $ 9.43      $ 72,694,238      $ 79,659,120      1

SAST SA Fixed Income Intermediate Index Portfolio Class 1

      3,308        9.90        32,753        32,208      1

SAST SA Fixed Income Intermediate Index Portfolio Class 3

      3,695,801        9.85        36,403,641        37,553,496      1

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1

      14,718,050        18.01        265,072,079        278,719,161      1

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 2

      2,095,945        18.04        37,810,840        39,255,274      1

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 3

      17,715,788        17.86        316,403,982        329,069,609      1

SAST SA Franklin Small Company Value Portfolio Class 1

      8,800        15.74        138,512        153,904      1

SAST SA Franklin Small Company Value Portfolio Class 3

      8,828,350        15.46        136,486,296        145,544,740      1

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 1

      11,103        17.88        198,513        200,168      1

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 3

      697,190        17.75        12,375,121        12,836,539      1

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1

      1,795,079        10.98        19,709,969        21,816,551      1

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 2

      424,112        10.95        4,644,023        5,262,264      1

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 3

      15,015,360        10.75        161,415,122        182,701,494      1

SAST SA Franklin Tactical Opportunities Portfolio Class 1

      13,114        11.69        153,306        143,600      1

SAST SA Franklin Tactical Opportunities Portfolio Class 3

      6,609,466        11.67        77,132,468        73,058,314      1

SAST SA Global Index Allocation 60/40 Portfolio Class 1

      3,006        16.98        51,039        50,058      1

SAST SA Global Index Allocation 60/40 Portfolio Class 3

      3,827,019        16.97        64,944,519        63,215,133      1

SAST SA Global Index Allocation 75/25 Portfolio Class 1

      21,400        17.65        377,710        351,522      1

SAST SA Global Index Allocation 75/25 Portfolio Class 3

      4,006,991        17.64        70,683,314        67,153,809      1

SAST SA Global Index Allocation 90/10 Portfolio Class 1

      227,050        18.48        4,195,883        3,567,347      1

SAST SA Global Index Allocation 90/10 Portfolio Class 3

      14,117,646        18.38        259,482,336        234,626,255      1

SAST SA Goldman Sachs Global Bond Portfolio Class 1

      1,213,725        9.51        11,542,525        13,581,644      1

SAST SA Goldman Sachs Global Bond Portfolio Class 2

      304,786        9.38        2,858,895        3,366,047      1

SAST SA Goldman Sachs Global Bond Portfolio Class 3

      19,060,149        9.25        176,306,380        205,312,002      1

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 1

      600        10.56        6,332        6,267      1

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 3

      2,860,276        10.51        30,061,501        30,712,612      1

SAST SA Index Allocation 60/40 Portfolio Class 1

      27,458        12.91        354,489        386,213      1

SAST SA Index Allocation 60/40 Portfolio Class 3

      14,253,999        12.88        183,591,502        173,258,779      1

SAST SA Index Allocation 80/20 Portfolio Class 1

      219,449        14.35        3,149,099        2,801,761      1

SAST SA Index Allocation 80/20 Portfolio Class 3

      24,499,851        14.29        350,102,870        311,145,675      1

SAST SA Index Allocation 90/10 Portfolio Class 1

      548,303        15.05        8,251,963        7,851,138      1

SAST SA Index Allocation 90/10 Portfolio Class 3

      65,495,787        15.00        982,436,804        838,692,467      1

SAST SA International Index Portfolio Class 1

      96,896        12.77        1,237,364        1,152,395      1

SAST SA International Index Portfolio Class 3

      1,923,381        12.67        24,369,241        23,070,164      1

SAST SA Invesco Growth Opportunities Portfolio Class 1

      1,072,025        6.21        6,657,277        9,224,964      1

SAST SA Invesco Growth Opportunities Portfolio Class 2

      437,466        5.61        2,454,184        3,463,431      1

SAST SA Invesco Growth Opportunities Portfolio Class 3

      22,520,447        5.25        118,232,347        160,339,706      1

SAST SA Janus Focused Growth Portfolio Class 1

      885,592        16.72        14,807,099        13,249,600      1

SAST SA Janus Focused Growth Portfolio Class 2

      493,711        15.91        7,854,945        6,469,384      1

SAST SA Janus Focused Growth Portfolio Class 3

      8,539,468        15.33        130,910,041        132,540,699      1

SAST SA JPMorgan Diversified Balanced Portfolio Class 1

      5,541,189        17.78        98,522,341        116,573,627      1

SAST SA JPMorgan Diversified Balanced Portfolio Class 2

      1,026,850        17.71        18,185,518        20,992,581      1

SAST SA JPMorgan Diversified Balanced Portfolio Class 3

      11,174,447        17.58        196,446,780        214,460,832      1

SAST SA JPMorgan Emerging Markets Portfolio Class 1

      1,576,467        7.36        11,602,797        12,947,178      1

SAST SA JPMorgan Emerging Markets Portfolio Class 2

      304,817        7.33        2,234,311        2,513,182      1

SAST SA JPMorgan Emerging Markets Portfolio Class 3

      12,407,465        7.26        90,078,196        100,936,603      1

SAST SA JPMorgan Equity-Income Portfolio Class 1

      3,299,569        31.82        104,992,283        107,713,656      1

SAST SA JPMorgan Equity-Income Portfolio Class 2

      292,412        31.77        9,289,921        9,946,513      1

SAST SA JPMorgan Equity-Income Portfolio Class 3

      7,001,082        31.46        220,254,028        240,793,855      1

SAST SA JPMorgan Global Equities Portfolio Class 1

      1,724,161        18.88        32,552,168        30,506,496      1

SAST SA JPMorgan Global Equities Portfolio Class 2

      135,497        18.84        2,552,760        2,287,015      1

SAST SA JPMorgan Global Equities Portfolio Class 3

      2,176,210        18.61        40,499,262        40,282,147      1

SAST SA JPMorgan Large Cap Core Portfolio Class 1

      1,119,260        20.79        23,269,416        21,027,295      1

SAST SA JPMorgan Large Cap Core Portfolio Class 2

      158,164        20.80        3,289,821        3,021,625      1

SAST SA JPMorgan Large Cap Core Portfolio Class 3

      3,348,648        20.62        69,049,123        68,557,213      1

SAST SA JPMorgan MFS Core Bond Portfolio Class 1

      3,529,768        8.13        28,697,011        32,193,199      1

SAST SA JPMorgan MFS Core Bond Portfolio Class 2

      685,748        8.11        5,561,415        6,244,537      1

SAST SA JPMorgan MFS Core Bond Portfolio Class 3

      71,358,074        8.05        574,432,497        635,090,880      1

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1

      3,563,213        16.97        60,467,720        80,877,524      1

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 2

      943,084        15.62        14,730,970        17,500,866      1

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 3

      20,489,954        14.79        303,046,413        391,702,338      1

SAST SA Large Cap Growth Index Portfolio Class 1

      41,970        22.12        928,374        816,485      1

SAST SA Large Cap Growth Index Portfolio Class 3

      1,922,244        21.97        42,231,707        43,276,596      1

SAST SA Large Cap Index Portfolio Class 1

      106,569        33.57        3,577,521        3,096,214      1

SAST SA Large Cap Index Portfolio Class 3

      2,685,047        33.37        89,600,035        85,903,771      1

SAST SA Large Cap Value Index Portfolio Class 1

      30,510        18.33        559,249        524,745      1

 

* Represents the level within the fair value hierarchy under which the portfolio is classified as defined in ASC 820 and described in Note 3 to the financial statements.

The accompanying Notes to Financial Statements are an integral part of this statement.

 

10

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

SCHEDULE OF PORTFOLIO INVESTMENTS

December 31, 2023

 

           
Sub-accounts     Shares      

Net Asset Value

per Share

     

Shares at Fair

Value

     

Cost of Shares

Held

       Level* 

SAST SA Large Cap Value Index Portfolio Class 3

      2,789,093      $ 18.18      $ 50,705,716      $ 49,787,659      1

SAST SA MFS Blue Chip Growth Portfolio Class 1

      682,384        13.87        9,464,669        8,892,755      1

SAST SA MFS Blue Chip Growth Portfolio Class 2

      221,764        13.75        3,049,258        2,776,697      1

SAST SA MFS Blue Chip Growth Portfolio Class 3

      9,753,211        13.54        132,058,477        128,425,875      1

SAST SA MFS Massachusetts Investors Trust Portfolio Class 1

      1,933,686        20.86        40,336,696        41,370,189      1

SAST SA MFS Massachusetts Investors Trust Portfolio Class 2

      300,101        20.91        6,275,121        6,581,692      1

SAST SA MFS Massachusetts Investors Trust Portfolio Class 3

      8,925,234        20.71        184,841,602        194,205,004      1

SAST SA MFS Total Return Portfolio Class 1

      4,621,649        17.86        82,542,643        84,711,016      1

SAST SA MFS Total Return Portfolio Class 2

      976,374        17.90        17,477,090        17,914,308      1

SAST SA MFS Total Return Portfolio Class 3

      11,449,038        17.80        203,792,880        213,257,649      1

SAST SA Mid Cap Index Portfolio Class 1

      45,805        13.85        634,394        636,169      1

SAST SA Mid Cap Index Portfolio Class 3

      4,596,493        13.73        63,109,847        62,850,598      1

SAST SA Morgan Stanley International Equities Portfolio Class 1

      2,085,091        9.54        19,891,773        18,885,417      1

SAST SA Morgan Stanley International Equities Portfolio Class 2

      623,528        9.51        5,929,755        5,998,494      1

SAST SA Morgan Stanley International Equities Portfolio Class 3

      9,453,674        9.48        89,620,832        88,741,277      1

SAST SA PIMCO RAE International Value Portfolio Class 1

      9,037        13.58        122,721        120,659      1

SAST SA PIMCO RAE International Value Portfolio Class 2

      573,527        13.60        7,799,966        8,187,895      1

SAST SA PIMCO RAE International Value Portfolio Class 3

      18,012,207        13.56        244,245,523        239,622,554      1

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 1

      5,245        9.44        49,517        59,423      1

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 3

      88,698,769        9.35        829,333,488        954,575,972      1

SAST SA PineBridge High-Yield Bond Portfolio Class 1

      4,818,158        5.15        24,813,513        25,902,703      1

SAST SA PineBridge High-Yield Bond Portfolio Class 2

      1,062,927        5.16        5,484,706        5,840,238      1

SAST SA PineBridge High-Yield Bond Portfolio Class 3

      15,249,571        5.11        77,925,307        80,449,571      1

SAST SA Putnam International Growth and Income Portfolio Class 1

      1,722,054        11.50        19,803,622        16,108,807      1

SAST SA Putnam International Growth and Income Portfolio Class 2

      409,324        11.58        4,739,973        3,498,397      1

SAST SA Putnam International Growth and Income Portfolio Class 3

      6,967,053        11.55        80,469,465        56,703,767      1

SAST SA Schroders VCP Global Allocation Portfolio Class 1

      26,186        9.87        258,457        276,706      1

SAST SA Schroders VCP Global Allocation Portfolio Class 3

      40,298,808        9.86        397,346,252        425,818,043      1

SAST SA Small Cap Index Portfolio Class 1

      48,663        12.16        591,746        642,081      1

SAST SA Small Cap Index Portfolio Class 3

      4,334,749        12.05        52,233,727        56,492,496      1

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 1

      39,628        13.72        543,699        469,145      1

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 3

      31,539,193        13.70        432,086,938        389,653,769      1

SAST SA T. Rowe Price VCP Balanced Portfolio Class 1

      22,394        11.11        248,799        288,254      1

SAST SA T. Rowe Price VCP Balanced Portfolio Class 3

      105,071,844        11.11        1,167,348,192        1,221,458,220      1

SAST SA VCP Dynamic Allocation Portfolio Class 1

      47,993        10.80        518,327        621,057      1

SAST SA VCP Dynamic Allocation Portfolio Class 3

      554,371,642        10.81        5,992,757,449        6,764,642,671      1

SAST SA VCP Dynamic Strategy Portfolio Class 1

      64,518        11.14        718,731        872,891      1

SAST SA VCP Dynamic Strategy Portfolio Class 3

      417,508,425        11.16        4,659,394,020        5,306,988,711      1

SAST SA VCP Index Allocation Portfolio Class 1

      44,995        11.72        527,346        538,127      1

SAST SA VCP Index Allocation Portfolio Class 3

      34,921,369        11.72        409,278,449        386,770,841      1

SAST SA Wellington Capital Appreciation Portfolio Class 1

      10,747,968        31.99        343,827,507        411,863,314      1

SAST SA Wellington Capital Appreciation Portfolio Class 2

      1,628,000        27.62        44,965,351        54,847,844      1

SAST SA Wellington Capital Appreciation Portfolio Class 3

      40,013,049        24.85        994,324,274        1,212,239,783      1

SAST SA Wellington Government and Quality Bond Portfolio Class 1

      3,079,744        13.19        40,621,827        46,571,386      1

SAST SA Wellington Government and Quality Bond Portfolio Class 2

      1,034,683        13.25        13,709,544        15,697,318      1

SAST SA Wellington Government and Quality Bond Portfolio Class 3

      27,396,874        13.16        360,542,858        412,469,180      1

SAST SA Wellington Strategic Multi-Asset Portfolio Class 1

      1,314,985        8.41        11,059,022        10,002,567      1

SAST SA Wellington Strategic Multi-Asset Portfolio Class 3

      14,048,118        8.34        117,161,305        122,115,994      1

VALIC Company I International Equities Index Fund

      548,782        8.02        4,401,231        3,766,706      1

VALIC Company I International Socially Responsible Fund

      43,811        24.07        1,054,525        1,036,729      1

VALIC Company I Mid Cap Index Fund

      151,333        25.88        3,916,509        3,814,150      1

VALIC Company I Nasdaq-100 Index Fund

      160,542        23.32        3,743,837        2,944,387      1

VALIC Company I Small Cap Index Fund

      193,694        14.96        2,897,663        3,421,444      1

VALIC Company I Stock Index Fund

      235,821        51.17        12,066,957        9,671,446      1

 

* Represents the level within the fair value hierarchy under which the portfolio is classified as defined in ASC 820 and described in Note 3 to the financial statements.

The accompanying Notes to Financial Statements are an integral part of this statement.

 

11

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
     

American Funds

IS American

High-Income

Trust Class 3

    

American Funds

IS Asset

Allocation Fund
Class 2

    

American Funds
IS Asset

Allocation Fund
Class 3

    

American Funds

IS Capital

Income Builder
Class 4

    

American Funds

IS Global

Growth Fund

Class 2

  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 556,069     $ 996,493     $ 644,085     $ 68,133     $ 1,241,091  

Mortality and expense risk and administrative charges

      (106,582 )      (698,338 )      (371,553 )      (28,483 )      (2,188,821 ) 

Net investment income (loss)

      449,487       298,155       272,532       39,650       (947,730 ) 

Net realized gain (loss)

      (222,584 )      241,823       60,541       23,601       3,385,465  

Capital gain distribution from mutual funds

      —       1,773,848       1,096,774       —       10,879,347  

Change in unrealized appreciation (depreciation) of investments

      631,433       3,046,186       2,066,682       123,960       13,118,625  

Increase (decrease) in net assets from operations

      858,336       5,360,012       3,496,529       187,211       26,435,707  

From contract transactions:

           

Payments received from contract owners

      1,200       361,641       10,902       —       652,872  

Payments for contract benefits or terminations

      (736,400 )      (5,217,412 )      (1,777,883 )      (52,994 )      (15,057,329 ) 

Transfers between sub-accounts (including fixed account), net

      (244,452 )      (139,361 )      56,977       96,063       (2,375,983 ) 

Contract maintenance charges

      (1,834 )      (27,496 )      (5,207 )      (74 )      (178,895 ) 

Adjustments to net assets allocated to contracts in payout period

      (3,056 )      (24,766 )      (5,413 )      —       (8,123 ) 

Increase (decrease) in net assets from contract transactions

      (984,542 )      (5,047,394 )      (1,720,624 )      42,995       (16,967,458 ) 

Increase (decrease) in net assets

      (126,206 )      312,618       1,775,905       230,206       9,468,249  

Net assets at beginning of period

      8,462,224       46,035,976       28,206,780       2,500,979       134,947,415  

Net assets at end of period

    $ 8,336,018     $ 46,348,594     $ 29,982,685     $ 2,731,185     $ 144,415,664  

Beginning units

      72,169       1,363,175       269,354       199,285       2,415,476  

Units issued

      1,665       25,319       4,605       17,363       37,991  

Units redeemed

      (9,836 )      (168,419 )      (20,336 )      (14,309 )      (311,998 ) 

Ending units

      63,998       1,220,075       253,623       202,339       2,141,469  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 694,532     $ 927,444     $ 584,775     $ 69,117     $ 976,586  

Mortality and expense risk and administrative charges

      (119,012 )      (775,719 )      (400,161 )      (30,695 )      (2,336,817 ) 

Net investment income (loss)

      575,520       151,725       184,614       38,422       (1,360,231 ) 

Net realized gain (loss)

      (97,069 )      716,480       649,752       48,436       4,154,706  

Capital gain distribution from mutual funds

      —       5,282,677       3,173,999       —       16,984,006  

Change in unrealized appreciation (depreciation) of investments

      (1,538,077 )      (14,834,620 )      (9,207,387 )      (340,878 )      (71,493,995 ) 

Increase (decrease) in net assets from operations

      (1,059,626 )      (8,683,738 )      (5,199,022 )      (254,020 )      (51,715,514 ) 

From contract transactions:

           

Payments received from contract owners

      13,258       1,101,575       100,206       15,609       1,617,035  

Payments for contract benefits or terminations

      (879,643 )      (5,818,538 )      (2,466,125 )      (132,975 )      (16,837,134 ) 

Transfers between sub-accounts (including fixed account), net

      18,685       (474,291 )      (506,879 )      (196,110 )      (1,188,426 ) 

Contract maintenance charges

      (2,115 )      (29,652 )      (5,738 )      (80 )      (193,555 ) 

Adjustments to net assets allocated to contracts in payout period

      16,349       12,897       27,725       —       79,097  

Increase (decrease) in net assets from contract transactions

      (833,466 )      (5,208,009 )      (2,850,811 )      (313,556 )      (16,522,983 ) 

Increase (decrease) in net assets

      (1,893,092 )      (13,891,747 )      (8,049,833 )      (567,576 )      (68,238,497 ) 

Net assets at beginning of period

      10,355,316       59,927,723       36,256,613       3,068,555       203,185,912  

Net assets at end of period

    $ 8,462,224     $ 46,035,976     $ 28,206,780     $ 2,500,979     $ 134,947,415  

Beginning units

      79,121       1,512,729       296,081       224,159       2,694,890  

Units issued

      4,274       50,745       4,886       1,828       91,225  

Units redeemed

      (11,226 )      (200,299 )      (31,613 )      (26,702 )      (370,639 ) 

Ending units

      72,169       1,363,175       269,354       199,285       2,415,476  

 The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

12

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
     

American Funds

IS Growth Fund
Class 2

    

American Funds

IS Growth Fund
Class 3

    

American Funds

IS Growth-

Income Fund

Class 2

    

American Funds

IS Growth-

Income Fund

Class 3

     American Funds
IS International
Fund Class 3		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 966,204     $ 882,947     $ 2,929,578     $ 1,848,072     $ 218,805  

Mortality and expense risk and administrative charges

      (4,199,940 )      (2,771,868 )      (3,377,998 )      (1,714,807 )      (211,286 ) 

Net investment income (loss)

      (3,233,736 )      (1,888,921 )      (448,420 )      133,265       7,519  

Net realized gain (loss)

      10,474,828       5,368,256       5,461,064       1,753,148       (165,620 ) 

Capital gain distribution from mutual funds

      15,332,580       11,837,189       11,526,243       6,857,393       —  

Change in unrealized appreciation (depreciation) of investments

      60,922,108       51,100,624       30,726,434       20,421,647       2,343,061  

Increase (decrease) in net assets from operations

      83,495,780       66,417,148       47,265,321       29,165,453       2,184,960  

From contract transactions:

           

Payments received from contract owners

      1,586,343       195,034       2,045,596       94,760       255,728  

Payments for contract benefits or terminations

      (28,828,108 )      (18,509,240 )      (26,238,481 )      (12,023,597 )      (1,509,149 ) 

Transfers between sub-accounts (including fixed account), net

      (8,332,223 )      164,142       (2,132,186 )      (91,614 )      117,139  

Contract maintenance charges

      (243,408 )      (31,278 )      (192,962 )      (25,708 )      (3,371 ) 

Adjustments to net assets allocated to contracts in payout period

      (10,842 )      (33,363 )      (20,364 )      (26,878 )      (921 ) 

Increase (decrease) in net assets from contract transactions

      (35,828,238 )      (18,214,705 )      (26,538,397 )      (12,073,037 )      (1,140,574 ) 

Increase (decrease) in net assets

      47,667,542       48,202,443       20,726,924       17,092,416       1,044,386  

Net assets at beginning of period

      242,695,335       187,911,811       208,775,356       124,724,884       15,475,218  

Net assets at end of period

    $ 290,362,877     $ 236,114,254     $ 229,502,280     $ 141,817,300     $ 16,519,604  

Beginning units

      3,660,475       297,600       4,482,042       348,371       237,462  

Units issued

      91,323       5,307       108,502       2,101       7,258  

Units redeemed

      (539,703 )      (29,516 )      (623,838 )      (32,550 )      (23,299 ) 

Ending units

      3,212,095       273,391       3,966,706       317,922       221,421  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 888,346     $ 821,251     $ 2,897,187     $ 1,776,178     $ 298,437  

Mortality and expense risk and administrative charges

      (4,426,887 )      (2,912,555 )      (3,629,914 )      (1,771,251 )      (219,760 ) 

Net investment income (loss)

      (3,538,541 )      (2,091,304 )      (732,727 )      4,927       78,677  

Net realized gain (loss)

      10,702,337       7,331,856       5,325,247       1,621,479       (127,777 ) 

Capital gain distribution from mutual funds

      40,915,162       31,549,264       23,153,445       13,249,082       2,328,264  

Change in unrealized appreciation (depreciation) of investments

      (162,697,569 )      (126,631,142 )      (77,824,517 )      (43,345,146 )      (6,815,615 ) 

Increase (decrease) in net assets from operations

      (114,618,611 )      (89,841,326 )      (50,078,552 )      (28,469,658 )      (4,536,451 ) 

From contract transactions:

           

Payments received from contract owners

      1,369,914       2,780,266       3,291,422       1,078,258       46,771  

Payments for contract benefits or terminations

      (28,217,287 )      (21,508,494 )      (27,531,270 )      (12,321,062 )      (974,269 ) 

Transfers between sub-accounts (including fixed account), net

      3,011,657       (5,370,736 )      (5,177,331 )      (1,861,744 )      (133,406 ) 

Contract maintenance charges

      (268,032 )      (32,990 )      (214,493 )      (27,538 )      (3,572 ) 

Adjustments to net assets allocated to contracts in payout period

      29,859       264,886       27,968       158,570       5,319  

Increase (decrease) in net assets from contract transactions

      (24,073,889 )      (23,867,068 )      (29,603,704 )      (12,973,516 )      (1,059,157 ) 

Increase (decrease) in net assets

      (138,692,500 )      (113,708,394 )      (79,682,256 )      (41,443,174 )      (5,595,608 ) 

Net assets at beginning of period

      381,387,835       301,620,205       288,457,612       166,168,058       21,070,826  

Net assets at end of period

    $ 242,695,335     $ 187,911,811     $ 208,775,356     $ 124,724,884     $ 15,475,218  

Beginning units

      3,967,897       330,617       5,091,815       382,859       252,846  

Units issued

      204,572       7,986       171,050       5,955       3,636  

Units redeemed

      (511,994 )      (41,003 )      (780,823 )      (40,443 )      (19,020 ) 

Ending units

      3,660,475       297,600       4,482,042       348,371       237,462  

 The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

13

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      American Funds
IS U.S.
Government
Securities Fund
Class 3		     American Funds
IS Ultra-Short
Bond Fund
Class 3		     BlackRock 60/40
Target Allocation
ETF V.I. Fund
Class III		     BlackRock
Global Allocation
V.I. Fund
Class III		     Columbia VP
Dividend
Opportunity
Fund Class 1		  

For the Year Ended For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 218,638     $ 197,507     $ 6,834     $ 14,147     $ —  

Mortality and expense risk and administrative charges

      (80,150 )      (55,658 )      (4,422 )      (7,310 )      (22,702 ) 

Net investment income (loss)

      138,488       141,849       2,412       6,837       (22,702 ) 

Net realized gain (loss)

      (198,434 )      9,362       2,069       (13,886 )      110,532  

Change in unrealized appreciation (depreciation) of investments

      150,305       (8,033 )      42,551       71,010       (38,998 ) 

Increase (decrease) in net assets from operations

      90,359       143,178       47,032       63,961       48,832  

From contract transactions:

           

Payments for contract benefits or terminations

      (712,293 )      (320,619 )      (7,719 )      (87,707 )      (146,614 ) 

Transfers between sub-accounts (including fixed account), net

      12,587       117,951       (258 )      14,150       106,069  

Contract maintenance charges

      (1,874 )      (1,743 )      (29 )      (78 )      (1,656 ) 

Adjustments to net assets allocated to contracts in payout period

      343       —       —       —       —  

Increase (decrease) in net assets from contract transactions

      (701,237 )      (204,411 )      (8,006 )      (73,635 )      (42,201 ) 

Increase (decrease) in net assets

      (610,878 )      (61,233 )      39,026       (9,674 )      6,631  

Net assets at beginning of period

      6,507,952       4,328,939       344,503       599,651       1,520,603  

Net assets at end of period

    $ 5,897,074     $ 4,267,706     $ 383,529     $ 589,977     $ 1,527,234  

Beginning units

      165,744       225,290       26,273       49,036       58,177  

Units issued

      5,037       16,834       150       1,216       4,340  

Units redeemed

      (23,038 )      (27,314 )      (788 )      (6,776 )      (6,034 ) 

Ending units

      147,743       214,810       25,635       43,476       56,483  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 292,058     $ 25,866     $ 6,719     $ —     $ —  

Mortality and expense risk and administrative charges

      (106,603 )      (61,446 )      (4,503 )      (8,913 )      (25,561 ) 

Net investment income (loss)

      185,455       (35,580 )      2,216       (8,913 )      (25,561 ) 

Net realized gain (loss)

      (416,183 )      (11,305 )      815       (23,545 )      190,679  

Capital gain distribution from mutual funds

      —       —       116       10,712       —  

Change in unrealized appreciation (depreciation) of investments

      (861,357 )      40,782       (68,956 )      (127,819 )      (210,625 ) 

Increase (decrease) in net assets from operations

      (1,092,085 )      (6,103 )      (65,809 )      (149,565 )      (45,507 ) 

From contract transactions:

           

Payments received from contract owners

      8,868       15,203       —       —       5,000  

Payments for contract benefits or terminations

      (1,366,223 )      (582,451 )      (421 )      (151,645 )      (84,070 ) 

Transfers between sub-accounts (including fixed account), net

      (738,187 )      282,861       1,516       (8,414 )      (183,216 ) 

Contract maintenance charges

      (2,135 )      (1,920 )      (23 )      (78 )      (1,935 ) 

Adjustments to net assets allocated to contracts in payout period

      4,531       511       —       —       —  

Increase (decrease) in net assets from contract transactions

      (2,093,146 )      (285,796 )      1,072       (160,137 )      (264,221 ) 

Increase (decrease) in net assets

      (3,185,231 )      (291,899 )      (64,737 )      (309,702 )      (309,728 ) 

Net assets at beginning of period

      9,693,183       4,620,838       409,240       909,353       1,830,331  

Net assets at end of period

    $ 6,507,952     $ 4,328,939     $ 344,503     $ 599,651     $ 1,520,603  

Beginning units

      217,102       240,234       26,189       61,912       68,160  

Units issued

      8,134       39,629       222       580       813  

Units redeemed

      (59,492 )      (54,573 )      (138 )      (13,456 )      (10,796 ) 

Ending units

      165,744       225,290       26,273       49,036       58,177  

 The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

14

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      Columbia VP
Emerging
Markets Bond
Fund Class 2		     Columbia VP
Income
Opportunities
Fund Class 1		     Columbia VP
Large Cap
Growth Fund
Class 1		     Columbia VP
Limited Duration
Credit Fund
Class 2		     Columbia VP
Overseas Core
Fund Class 2		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 3,769     $ 302,515     $ —     $ 5,371     $ 19,460  

Mortality and expense risk and administrative charges

      (784 )      (94,931 )      (327,177 )      (2,450 )      (17,579 ) 

Net investment income (loss)

      2,985       207,584       (327,177 )      2,921       1,881  

Net realized gain (loss)

      (279 )      (284,738 )      2,649,198       (4,145 )      (3,927 ) 

Change in unrealized appreciation (depreciation) of investments

      3,488       615,922       4,610,796       12,540       146,670  

Increase (decrease) in net assets from operations

      6,194       538,768       6,932,817       11,316       144,624  

From contract transactions:

           

Payments received from contract owners

      —       14,800       51,942       —       —  

Payments for contract benefits or terminations

      —       (1,045,174 )      (2,674,590 )      (18,287 )      (106,196 ) 

Transfers between sub-accounts (including fixed account), net

      338       164,558       (957,214 )      23,922       31,733  

Contract maintenance charges

      (11 )      (28,287 )      (49,723 )      (18 )      (1,220 ) 

Increase (decrease) in net assets from contract transactions

      327       (894,103 )      (3,629,585 )      5,617       (75,683 ) 

Increase (decrease) in net assets

      6,521       (355,335 )      3,303,232       16,933       68,941  

Net assets at beginning of period

      69,999       6,155,476       17,942,900       213,146       1,119,169  

Net assets at end of period

    $ 76,520     $ 5,800,141     $ 21,246,132     $ 230,079     $ 1,188,110  

Beginning units

      7,176       233,091       950,665       21,604       93,973  

Units issued

      35       9,316       19,537       5,606       3,276  

Units redeemed

      (2 )      (42,422 )      (171,299 )      (5,081 )      (9,402 ) 

Ending units

      7,209       199,985       798,903       22,129       87,847  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 2,971     $ 353,324     $ —     $ 1,665     $ 9,567  

Mortality and expense risk and administrative charges

      (794 )      (109,938 )      (334,967 )      (4,225 )      (19,222 ) 

Net investment income (loss)

      2,177       243,386       (334,967 )      (2,560 )      (9,655 ) 

Net realized gain (loss)

      (504 )      (213,911 )      1,395,484       (18,254 )      (10,861 ) 

Capital gain distribution from mutual funds

      —       236,185       —       —       93,732  

Change in unrealized appreciation (depreciation) of investments

      (16,230 )      (1,158,138 )      (9,848,344 )      (10,875 )      (319,125 ) 

Increase (decrease) in net assets from operations

      (14,557 )      (892,478 )      (8,787,827 )      (31,689 )      (245,909 ) 

From contract transactions:

           

Payments received from contract owners

      —       5,812       12,623       —       2,500  

Payments for contract benefits or terminations

      (1,130 )      (715,765 )      (1,650,083 )      (101,964 )      (72,164 ) 

Transfers between sub-accounts (including fixed account), net

      (71 )      (196,117 )      799,776       (49,037 )      (88,510 ) 

Contract maintenance charges

      (12 )      (32,687 )      (51,648 )      (21 )      (1,394 ) 

Adjustments to net assets allocated to contracts in payout period

      —       (208 )      (8,133 )      —       —  

Increase (decrease) in net assets from contract transactions

      (1,213 )      (938,965 )      (897,465 )      (151,022 )      (159,568 ) 

Increase (decrease) in net assets

      (15,770 )      (1,831,443 )      (9,685,292 )      (182,711 )      (405,477 ) 

Net assets at beginning of period

      85,769       7,986,919       27,628,192       395,857       1,524,646  

Net assets at end of period

    $ 69,999     $ 6,155,476     $ 17,942,900     $ 213,146     $ 1,119,169  

Beginning units

      7,292       267,729       988,128       37,142       107,331  

Units issued

      —       13,235       70,266       3,444       1,561  

Units redeemed

      (116 )      (47,873 )      (107,729 )      (18,982 )      (14,919 ) 

Ending units

      7,176       233,091       950,665       21,604       93,973  

 The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

15

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      Columbia VP
Select Mid Cap
Growth
Opportunity
Fund Class 1		     Columbia VP
Small Company
Growth Fund
Class 1		     CTIVP®
Principal Blue
Chip Growth
Fund Class 1		     Delaware Ivy
VIP Asset
Strategy Class II		     FTVIP Franklin
Allocation VIP
Fund Class 1		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ —     $ —     $ —     $ 3,883     $ 246  

Mortality and expense risk and administrative charges

      (4,710 )      (5,753 )      (28,959 )      (2,590 )      (80 ) 

Net investment income (loss)

      (4,710 )      (5,753 )      (28,959 )      1,293       166  

Net realized gain (loss)

      20,510       (214,477 )      425,372       (1,396 )      (85 ) 

Capital gain distribution from mutual funds

      —       —       —       —       239  

Change in unrealized appreciation (depreciation) of investments

      48,765       303,323       205,316       26,444       1,618  

Increase (decrease) in net assets from operations

      64,565       83,093       601,729       26,341       1,938  

From contract transactions:

           

Payments received from contract owners

      —       22,557       24,233       —       —  

Payments for contract benefits or terminations

      (20,063 )      (39,755 )      (545,367 )      (91,863 )      —  

Transfers between sub-accounts (including fixed account), net

      (489 )      (242,409 )      (25,087 )      (5,451 )      301  

Contract maintenance charges

      (78 )      (22 )      (1,454 )      (10 )      (256 ) 

Increase (decrease) in net assets from contract transactions

      (20,630 )      (259,629 )      (547,675 )      (97,324 )      45  

Increase (decrease) in net assets

      43,935       (176,536 )      54,054       (70,983 )      1,983  

Net assets at beginning of period

      284,840       506,876       1,670,678       262,049       13,763  

Net assets at end of period

    $ 328,775     $ 330,340     $ 1,724,732     $ 191,066     $ 15,746  

Beginning units

      10,725       15,760       91,080       22,232       1,220  

Units issued

      278       659       7,304       89       29  

Units redeemed

      (967 )      (8,165 )      (29,929 )      (7,860 )      (26 ) 

Ending units

      10,036       8,254       68,455       14,461       1,223  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ —     $ —     $ —     $ 4,393     $ 285  

Mortality and expense risk and administrative charges

      (4,637 )      (10,288 )      (28,030 )      (3,509 )      (80 ) 

Net investment income (loss)

      (4,637 )      (10,288 )      (28,030 )      884       205  

Net realized gain (loss)

      21,901       (147,844 )      63,367       (5,349 )      (126 ) 

Capital gain distribution from mutual funds

      —       287,448       —       23,924       1,409  

Change in unrealized appreciation (depreciation) of investments

      (146,085 )      (492,839 )      (693,651 )      (78,317 )      (4,201 ) 

Increase (decrease) in net assets from operations

      (128,821 )      (363,523 )      (658,314 )      (58,858 )      (2,713 ) 

From contract transactions:

           

Payments for contract benefits or terminations

      (26,113 )      (42,789 )      (76,401 )      (57,342 )      —  

Transfers between sub-accounts (including fixed account), net

      31,843       (79,456 )      112,789       (1,815 )      (55 ) 

Contract maintenance charges

      (70 )      (166 )      (1,515 )      (5 )      (255 ) 

Increase (decrease) in net assets from contract transactions

      5,660       (122,411 )      34,873       (59,162 )      (310 ) 

Increase (decrease) in net assets

      (123,161 )      (485,934 )      (623,441 )      (118,020 )      (3,023 ) 

Net assets at beginning of period

      408,001       992,810       2,294,119       380,069       16,786  

Net assets at end of period

    $ 284,840     $ 506,876     $ 1,670,678     $ 262,049     $ 13,763  

Beginning units

      10,488       19,502       88,671       27,274       1,248  

Units issued

      1,342       2,346       6,314       531       14  

Units redeemed

      (1,105 )      (6,088 )      (3,905 )      (5,573 )      (42 ) 

Ending units

      10,725       15,760       91,080       22,232       1,220  

 The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

16

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      FTVIP Franklin
Allocation VIP
Fund Class 2		     FTVIP Franklin
Income VIP
Fund Class 1		     FTVIP Franklin
Income VIP
Fund Class 2		    

FTVIP Franklin

Strategic Income

VIP Fund
Class 2

    

Goldman Sachs
VIT Government
Money Market
Fund

Institutional
Shares

  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 451,471     $ 101,713     $ 6,545,140     $ 43,228     $ 535,637  

Mortality and expense risk and administrative charges

      (456,173 )      (8,641 )      (1,795,274 )      (11,633 )      (132,616 ) 

Net investment income (loss)

      (4,702 )      93,072       4,749,866       31,595       403,021  

Net realized gain (loss)

      (2,772,678 )      (174,107 )      (1,305,090 )      (8,702 )      —  

Capital gain distribution from mutual funds

      524,052       117,148       7,934,804       —       —  

Change in unrealized appreciation (depreciation) of investments

      6,042,868       74,855       (2,796,475 )      40,448       —  

Increase (decrease) in net assets from operations

      3,789,540       110,968       8,583,105       63,341       403,021  

From contract transactions:

           

Payments received from contract owners

      921,008       —       11,225,398       —       11,579  

Payments for contract benefits or terminations

      (4,204,119 )      (126,320 )      (15,420,617 )      (19,440 )      (1,997,671 ) 

Transfers between sub-accounts (including fixed account), net

      212,187       (1,130,997 )      6,056,723       34,891       945,843  

Contract maintenance charges

      (368,168 )      (773 )      (1,335,373 )      (35 )      (12,443 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       —       —       (4,501 ) 

Increase (decrease) in net assets from contract transactions

      (3,439,092 )      (1,258,090 )      526,131       15,416       (1,057,193 ) 

Increase (decrease) in net assets

      350,448       (1,147,122 )      9,109,236       78,757       (654,172 ) 

Net assets at beginning of period

      30,941,304       2,203,613       123,668,043       929,141       10,841,980  

Net assets at end of period

    $ 31,291,752     $ 1,056,491     $ 132,777,279     $ 1,007,898     $ 10,187,808  

Beginning units

      2,052,074       179,577       7,113,905       96,920       1,096,181  

Units issued

      163,886       145       1,280,372       4,046       109,560  

Units redeemed

      (380,292 )      (100,224 )      (1,287,852 )      (2,529 )      (211,141 ) 

Ending units

      1,835,668       79,498       7,106,425       98,437       994,600  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 556,946     $ 106,462     $ 6,184,132     $ 42,609     $ 161,898  

Mortality and expense risk and administrative charges

      (503,915 )      (10,354 )      (1,811,773 )      (12,012 )      (134,768 ) 

Net investment income (loss)

      53,031       96,108       4,372,359       30,597       27,130  

Net realized gain (loss)

      (2,800,483 )      873       666,281       (20,364 )      —  

Capital gain distribution from mutual funds

      3,347,619       40,592       2,510,170       —       —  

Change in unrealized appreciation (depreciation) of investments

      (7,508,760 )      (257,732 )      (16,581,373 )      (139,928 )      —  

Increase (decrease) in net assets from operations

      (6,908,593 )      (120,159 )      (9,032,563 )      (129,695 )      27,130  

From contract transactions:

           

Payments received from contract owners

      1,728,277       193,476       17,095,272       —       1,306,095  

Payments for contract benefits or terminations

      (4,534,475 )      (2,391 )      (15,193,553 )      (11,735 )      (2,345,522 ) 

Transfers between sub-accounts (including fixed account), net

      97,338       849,367       798,124       (17,231 )      2,727,696  

Contract maintenance charges

      (380,648 )      (1,023 )      (1,259,034 )      (42 )      (9,820 ) 

Adjustments to net assets allocated to contracts in payout period

      (284 )      —       6,573       —       (1,116 ) 

Increase (decrease) in net assets from contract transactions

      (3,089,792 )      1,039,429       1,447,382       (29,008 )      1,677,333  

Increase (decrease) in net assets

      (9,998,385 )      919,270       (7,585,181 )      (158,703 )      1,704,463  

Net assets at beginning of period

      40,939,689       1,284,343       131,253,224       1,087,844       9,137,517  

Net assets at end of period

    $ 30,941,304     $ 2,203,613     $ 123,668,043     $ 929,141     $ 10,841,980  

Beginning units

      2,251,672       98,610       7,072,748       100,068       934,543  

Units issued

      235,538       81,806       1,768,837       3,602       432,502  

Units redeemed

      (435,136 )      (839 )      (1,727,680 )      (6,750 )      (270,864 ) 

Ending units

      2,052,074       179,577       7,113,905       96,920       1,096,181  

 The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

17

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      Goldman Sachs
VIT Government
Money Market
Fund Service
Shares		    

Goldman Sachs

VIT Multi-
Strategy
Alternatives
Portfolio Advisor
Shares

     Goldman Sachs
VIT Trend
Driven Allocation
Fund Service
Shares		     Invesco V.I.
American
Franchise Fund
Series I		     Invesco V.I.
American
Franchise Fund
Series II		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 15,105,925     $ 17,679     $ 227     $ —     $ —  

Mortality and expense risk and administrative charges

      (4,316,105 )      (3,781 )      (154 )      (344 )      (1,394,904 ) 

Net investment income (loss)

      10,789,820       13,898       73       (344 )      (1,394,904 ) 

Net realized gain (loss)

      (1 )      (3,685 )      (156 )      (16,561 )      (7,416,675 ) 

Capital gain distribution from mutual funds

      —       —       —       1,194       2,624,468  

Change in unrealized appreciation (depreciation) of investments

      —       8,981       1,913       37,352       40,425,722  

Increase (decrease) in net assets from operations

      10,789,819       19,194       1,830       21,641       34,238,611  

From contract transactions:

           

Payments received from contract owners

      28,063,437       —       —       —       12,866,832  

Payments for contract benefits or terminations

      (118,670,252 )      (144,260 )      (312 )      —       (4,816,502 ) 

Transfers between sub-accounts (including fixed account), net

      71,194,251       12,458       3,352       (21,226 )      (5,738,934 ) 

Contract maintenance charges

      (4,629,508 )      (15 )      (6 )      (349 )      (1,566,984 ) 

Increase (decrease) in net assets from contract transactions

      (24,042,072 )      (131,817 )      3,034       (21,575 )      744,412  

Increase (decrease) in net assets

      (13,252,253 )      (112,623 )      4,864       66       34,983,023  

Net assets at beginning of period

      328,951,511       399,235       12,678       59,808       87,831,916  

Net assets at end of period

    $ 315,699,258     $ 286,612     $ 17,542     $ 59,874     $ 122,814,939  

Beginning units

      33,970,139       42,297       1,191       4,427       2,826,014  

Units issued

      19,132,864       1,429       301       17       561,380  

Units redeemed

      (21,565,428 )      (15,125 )      (56 )      (1,277 )      (545,541 ) 

Ending units

      31,537,575       28,601       1,436       3,167       2,841,853  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 4,191,334     $ 13,729     $ —     $ —     $ —  

Mortality and expense risk and administrative charges

      (3,695,563 )      (5,062 )      (154 )      (288 )      (1,190,634 ) 

Net investment income (loss)

      495,771       8,667       (154 )      (288 )      (1,190,634 ) 

Net realized gain (loss)

      —       1,266       (72 )      (225 )      (249,834 ) 

Capital gain distribution from mutual funds

      —       —       491       17,585       27,661,957  

Change in unrealized appreciation (depreciation) of investments

      —       (47,152 )      (3,308 )      (39,782 )      (61,158,805 ) 

Increase (decrease) in net assets from operations

      495,771       (37,219 )      (3,043 )      (22,710 )      (34,937,316 ) 

From contract transactions:

           

Payments received from contract owners

      47,077,348       —       —       —       18,752,786  

Payments for contract benefits or terminations

      (105,810,468 )      (54,426 )      (334 )      —       (4,048,826 ) 

Transfers between sub-accounts (including fixed account), net

      173,890,209       (21,243 )      617       14,702       9,761,299  

Contract maintenance charges

      (4,271,714 )      (24 )      (6 )      (238 )      (1,374,174 ) 

Adjustments to net assets allocated to contracts in payout period

      3,136       —       —       —       3,929  

Increase (decrease) in net assets from contract transactions

      110,888,511       (75,693 )      277       14,464       23,095,014  

Increase (decrease) in net assets

      111,384,282       (112,912 )      (2,766 )      (8,246 )      (11,842,302 ) 

Net assets at beginning of period

      217,567,229       512,147       15,444       68,054       99,674,218  

Net assets at end of period

    $ 328,951,511     $ 399,235     $ 12,678     $ 59,808     $ 87,831,916  

Beginning units

      22,490,562       50,186       1,163       3,447       2,185,893  

Units issued

      35,489,917       969       77       998       882,452  

Units redeemed

      (24,010,340 )      (8,858 )      (49 )      (18 )      (242,331 ) 

Ending units

      33,970,139       42,297       1,191       4,427       2,826,014  

 The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

18

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      Invesco V.I.
Balanced-Risk
Allocation Fund
Series II		     Invesco V.I.
Comstock Fund
Series I		     Invesco V.I.
Comstock Fund
Series II		     Invesco V.I.
Growth and
Income Fund
Series I		     Invesco V.I.
Growth and
Income Fund
Series II		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ —     $ 14,492     $ 4,733,105     $ 16,075     $ 4,139,290  

Mortality and expense risk and administrative charges

      (6,972 )      (2,988 )      (4,414,875 )      (5,648 )      (4,819,176 ) 

Net investment income (loss)

      (6,972 )      11,504       318,230       10,427       (679,886 ) 

Net realized gain (loss)

      (26,505 )      2,185       6,134,590       7,384       (1,766,075 ) 

Capital gain distribution from mutual funds

      —       89,210       34,086,514       127,731       40,484,351  

Change in unrealized appreciation (depreciation) of investments

      61,831       (13,485 )      (10,395,071 )      (26,187 )      (5,177,760 ) 

Increase (decrease) in net assets from operations

      28,354       89,414       30,144,263       119,355       32,860,630  

From contract transactions:

           

Payments received from contract owners

      —       351,550       15,997,934       —       7,222,405  

Payments for contract benefits or terminations

      (91,032 )      (7,824 )      (27,854,952 )      (125,726 )      (33,111,134 ) 

Transfers between sub-accounts (including fixed account), net

      13,393       106,244       1,003,238       (117,551 )      3,202,517  

Contract maintenance charges

      (79 )      (3,501 )      (3,144,525 )      (399 )      (3,044,658 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       (2,631 )      —       (25 ) 

Increase (decrease) in net assets from contract transactions

      (77,718 )      446,469       (14,000,936 )      (243,676 )      (25,730,895 ) 

Increase (decrease) in net assets

      (49,364 )      535,883       16,143,327       (124,321 )      7,129,735  

Net assets at beginning of period

      628,487       318,660       298,819,348       1,189,080       322,688,719  

Net assets at end of period

    $ 579,123     $ 854,543     $ 314,962,675     $ 1,064,759     $ 329,818,454  

Beginning units

      53,145       22,084       10,488,776       90,181       11,513,648  

Units issued

      1,193       32,310       1,404,665       116       829,127  

Units redeemed

      (7,804 )      (1,342 )      (1,841,185 )      (18,257 )      (1,686,689 ) 

Ending units

      46,534       53,052       10,052,256       72,040       10,656,086  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 50,099     $ 5,170     $ 4,269,510     $ 20,019     $ 4,444,465  

Mortality and expense risk and administrative charges

      (8,051 )      (1,259 )      (4,620,010 )      (6,400 )      (5,363,266 ) 

Net investment income (loss)

      42,048       3,911       (350,500 )      13,619       (918,801 ) 

Net realized gain (loss)

      (3,883 )      9,783       9,843,091       843       8,176,719  

Capital gain distribution from mutual funds

      24,238       9,854       9,735,609       113,914       32,581,570  

Change in unrealized appreciation (depreciation) of investments

      (179,002 )      (19,436 )      (21,192,628 )      (198,372 )      (68,214,812 ) 

Increase (decrease) in net assets from operations

      (116,599 )      4,112       (1,964,428 )      (69,996 )      (28,375,324 ) 

From contract transactions:

           

Payments received from contract owners

      —       8,635       27,311,024       —       14,784,874  

Payments for contract benefits or terminations

      (3,804 )      (4,906 )      (27,628,620 )      —       (34,121,173 ) 

Transfers between sub-accounts (including fixed account), net

      (5,988 )      78,433       (21,165,423 )      62,167       (24,721,650 ) 

Contract maintenance charges

      (55 )      (2,456 )      (3,157,430 )      (344 )      (3,305,758 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       15,890       —       11,824  

Increase (decrease) in net assets from contract transactions

      (9,847 )      79,706       (24,624,559 )      61,823       (47,351,883 ) 

Increase (decrease) in net assets

      (126,446 )      83,818       (26,588,987 )      (8,173 )      (75,727,207 ) 

Net assets at beginning of period

      754,933       234,842       325,408,335       1,197,253       398,415,926  

Net assets at end of period

    $ 628,487     $ 318,660     $ 298,819,348     $ 1,189,080     $ 322,688,719  

Beginning units

      53,926       16,358       11,277,015       85,053       13,083,624  

Units issued

      186       9,715       2,162,340       5,332       1,085,010  

Units redeemed

      (967 )      (3,989 )      (2,950,579 )      (204 )      (2,654,986 ) 

Ending units

      53,145       22,084       10,488,776       90,181       11,513,648  

 The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

19

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      Lord Abbett
Bond
Debenture
Portfolio
Class VC		   Lord Abbett
Fundamental
Equity Portfolio
Class VC		   Lord Abbett
Growth and
Income Portfolio
Class VC		   Lord Abbett Mid
Cap Stock
Portfolio
Class VC		   Lord Abbett
Short Duration
Income Portfolio
Class VC

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 42,159     $ 286     $ 1,268,726     $ 47,971     $ 82,883  

Mortality and expense risk and administrative charges

      (10,174 )      (1,049 )      (2,092,717 )      (160,815 )      (19,925 ) 

Net investment income (loss)

      31,985       (763 )      (823,991 )      (112,844 )      62,958  

Net realized gain (loss)

      (28,217 )      8,537       (623,023 )      310,352       (11,908 ) 

Capital gain distribution from mutual funds

      —       1,602       2,761,120       298,072       —  

Change in unrealized appreciation (depreciation) of investments

      37,810       1,949       13,575,518       848,388       17,050  

Increase (decrease) in net assets from operations

      41,578       11,325       14,889,624       1,343,968       68,100  

From contract transactions:

           

Payments received from contract owners

      —       —       1,705,292       59,617       —  

Payments for contract benefits or terminations

      (40,051 )      (58,601 )      (15,342,411 )      (1,234,101 )      (42,385 ) 

Transfers between sub-accounts (including fixed account), net

      25,099       1,849       2,087,758       73,794       131,878  

Contract maintenance charges

      (24 )      (5 )      (1,220,978 )      (6,040 )      (85 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       (5,103 )      (450 )      —  

Increase (decrease) in net assets from contract transactions

      (14,976 )      (56,757 )      (12,775,442 )      (1,107,180 )      89,408  

Increase (decrease) in net assets

      26,602       (45,432 )      2,114,182       236,788       157,508  

Net assets at beginning of period

      820,505       95,951       138,597,357       10,599,555       1,708,875  

Net assets at end of period

    $ 847,107     $ 50,519     $ 140,711,539     $ 10,836,343     $ 1,866,383  

Beginning units

      71,122       6,324       5,863,788       397,752       169,006  

Units issued

      10,797       147       382,815       11,923       19,604  

Units redeemed

      (12,175 )      (3,534 )      (905,936 )      (51,906 )      (10,982 ) 

Ending units

      69,744       2,937       5,340,667       357,769       177,628  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 38,458     $ 1,106     $ 1,916,196     $ 90,054     $ 49,492  

Mortality and expense risk and administrative charges

      (13,600 )      (1,589 )      (2,330,806 )      (173,766 )      (20,233 ) 

Net investment income (loss)

      24,858       (483 )      (414,610 )      (83,712 )      29,259  

Net realized gain (loss)

      (54,242 )      (499 )      2,968,737       631,460       (10,149 ) 

Capital gain distribution from mutual funds

      3,387       14,045       11,689,893       686,092       —  

Change in unrealized appreciation (depreciation) of investments

      (167,867 )      (32,780 )      (33,080,377 )      (2,873,353 )      (135,505 ) 

Increase (decrease) in net assets from operations

      (193,864 )      (19,717 )      (18,836,357 )      (1,639,513 )      (116,395 ) 

From contract transactions:

           

Payments received from contract owners

      —       —       4,009,327       72,616       —  

Payments for contract benefits or terminations

      (194,721 )      (35,029 )      (15,969,034 )      (1,299,670 )      (56,103 ) 

Transfers between sub-accounts (including fixed account), net

      (264,824 )      (5,690 )      (7,198,771 )      (226,372 )      (34,438 ) 

Contract maintenance charges

      (28 )      (5 )      (1,337,437 )      (6,451 )      (70 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       14,387       1,580       —  

Increase (decrease) in net assets from contract transactions

      (459,573 )      (40,724 )      (20,481,528 )      (1,458,297 )      (90,611 ) 

Increase (decrease) in net assets

      (653,437 )      (60,441 )      (39,317,885 )      (3,097,810 )      (207,006 ) 

Net assets at beginning of period

      1,473,942       156,392       177,915,242       13,697,365       1,915,881  

Net assets at end of period

    $ 820,505     $ 95,951     $ 138,597,357     $ 10,599,555     $ 1,708,875  

Beginning units

      110,186       9,094       6,688,431       449,581       177,884  

Units issued

      5,086       11       397,907       11,158       5,014  

Units redeemed

      (44,150 )      (2,781 )      (1,222,550 )      (62,987 )      (13,892 ) 

Ending units

      71,122       6,324       5,863,788       397,752       169,006  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

20

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

                                                                                                                                 
           
      Morgan Stanley
VIF Global
Infrastructure
Portfolio Class II		     Neuberger
Berman AMT US
Equity Index
PutWrite
Strategy
Portfolio Class S		     PIMCO All Asset
Portfolio Advisor
Class		     PIMCO Dynamic
Bond Portfolio
Advisor Class		     PIMCO
Emerging
Markets Bond
Portfolio Advisor
Class		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 16,747     $ —     $ 362     $ 23,862     $ 183,627  

Mortality and expense risk and administrative charges

      (8,178 )      (4,244 )      (166 )      (7,797 )      (41,915 ) 

Net investment income (loss)

      8,569       (4,244 )      196       16,065       141,712  

Net realized gain (loss)

      (15,982 )      (9,831 )      (661 )      (58,242 )      (94,268 ) 

Capital gain distribution from mutual funds

      104,029       —       —       —       —  

Change in unrealized appreciation (depreciation) of investments

      (74,243 )      65,018       1,191       76,367       261,503  

Increase (decrease) in net assets from operations

      22,373       50,943       726       34,190       308,947  

From contract transactions:

           

Payments received from contract owners

      —       —       —       —       609,301  

Payments for contract benefits or terminations

      (85,777 )      (148,963 )      (6,332 )      (256,132 )      (144,848 ) 

Transfers between sub-accounts (including fixed account), net

      76,401       224       1       18,418       499,849  

Contract maintenance charges

      (61 )      (19 )      (14 )      (82 )      (47,923 ) 

Increase (decrease) in net assets from contract transactions

      (9,437 )      (148,758 )      (6,345 )      (237,796 )      916,379  

Increase (decrease) in net assets

      12,936       (97,815 )      (5,619 )      (203,606 )      1,225,326  

Net assets at beginning of period

      705,825       429,671       16,151       742,053       2,711,377  

Net assets at end of period

    $ 718,761     $ 331,856     $ 10,532     $ 538,447     $ 3,936,703  

Beginning units

      57,073       38,708       1,355       72,188       312,243  

Units issued

      6,331       473       —       1,975       141,686  

Units redeemed

      (7,240 )      (12,882 )      (522 )      (24,596 )      (39,678 ) 

Ending units

      56,164       26,299       833       49,567       414,251  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 21,437     $ —     $ 3,572     $ 25,884     $ 115,705  

Mortality and expense risk and administrative charges

      (9,486 )      (5,406 )      (583 )      (11,463 )      (30,781 ) 

Net investment income (loss)

      11,951       (5,406 )      2,989       14,421       84,924  

Net realized gain (loss)

      6,410       9,001       (6,997 )      (60,861 )      (148,655 ) 

Capital gain distribution from mutual funds

      45,344       76,996       5,550       108,544       —  

Change in unrealized appreciation (depreciation) of investments

      (147,183 )      (148,154 )      (9,853 )      (144,401 )      (329,493 ) 

Increase (decrease) in net assets from operations

      (83,478 )      (67,563 )      (8,311 )      (82,297 )      (393,224 ) 

From contract transactions:

           

Payments received from contract owners

      —       —       —       —       1,079,894  

Payments for contract benefits or terminations

      (134,543 )      (85,735 )      (47,766 )      (242,372 )      (246,913 ) 

Transfers between sub-accounts (including fixed account), net

      (59,605 )      (2,814 )      (4,182 )      (92,624 )      9,968  

Contract maintenance charges

      (67 )      (28 )      (7 )      (74 )      (32,795 ) 

Increase (decrease) in net assets from contract transactions

      (194,215 )      (88,577 )      (51,955 )      (335,070 )      810,154  

Increase (decrease) in net assets

      (277,693 )      (156,140 )      (60,266 )      (417,367 )      416,930  

Net assets at beginning of period

      983,518       585,811       76,417       1,159,420       2,294,447  

Net assets at end of period

    $ 705,825     $ 429,671     $ 16,151     $ 742,053     $ 2,711,377  

Beginning units

      72,067       46,376       5,552       104,353       218,102  

Units issued

      759       613       —       496       173,270  

Units redeemed

      (15,753 )      (8,281 )      (4,197 )      (32,661 )      (79,129 ) 

Ending units

      57,073       38,708       1,355       72,188       312,243  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

21

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

                                                                                                                                 
           
      PIMCO Total
Return Portfolio
Advisor Class		     PIMCO Total
Return Portfolio
Institutional
Class		     PVC Core Plus
Bond Account
Class 1		     PVC Diversified
International
Account Class 1		     PVC Equity
Income Account
Class 1		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 6,644,537     $ 45,628     $ 78,792     $ 7,557     $ 186,656  

Mortality and expense risk and administrative charges

      (2,434,567 )      (6,346 )      (42,090 )      (9,499 )      (132,715 ) 

Net investment income (loss)

      4,209,970       39,282       36,702       (1,942 )      53,941  

Net realized gain (loss)

      (2,720,843 )      (74,839 )      (99,532 )      10,692       445,315  

Capital gain distribution from mutual funds

      —       —       —       —       414,974  

Change in unrealized appreciation (depreciation) of investments

      7,029,072       88,269       171,488       85,008       (68,448 ) 

Increase (decrease) in net assets from operations

      8,518,199       52,712       108,658       93,758       845,782  

From contract transactions:

           

Payments received from contract owners

      23,659,413       18,000       —       —       360  

Payments for contract benefits or terminations

      (9,383,683 )      (26,657 )      (474,095 )      (122,530 )      (1,227,954 ) 

Transfers between sub-accounts (including fixed account), net

      29,281,360       4,656       53,146       1,967       36,261  

Contract maintenance charges

      (3,355,800 )      (15,267 )      (3,512 )      (798 )      (9,565 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       —       (1,540 )      (3,405 ) 

Increase (decrease) in net assets from contract transactions

      40,201,290       (19,268 )      (424,461 )      (122,901 )      (1,204,303 ) 

Increase (decrease) in net assets

      48,719,489       33,444       (315,803 )      (29,143 )      (358,521 ) 

Net assets at beginning of period

      168,946,623       1,165,100       3,094,671       644,211       9,578,221  

Net assets at end of period

    $ 217,666,112     $ 1,198,544     $ 2,778,868     $ 615,068     $ 9,219,700  

Beginning units

      19,186,717       128,899       335,461       74,210       360,224  

Units issued

      6,653,284       25,140       5,696       1,489       1,466  

Units redeemed

      (2,182,029 )      (28,587 )      (50,882 )      (14,464 )      (45,291 ) 

Ending units

      23,657,972       125,452       290,275       61,235       316,399  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 4,131,251     $ 22,184     $ 103,986     $ 18,010     $ 189,592  

Mortality and expense risk and administrative charges

      (2,080,579 )      (3,971 )      (51,987 )      (11,368 )      (145,115 ) 

Net investment income (loss)

      2,050,672       18,213       51,999       6,642       44,477  

Net realized gain (loss)

      (4,593,868 )      (21,775 )      (92,247 )      33,518       332,262  

Capital gain distribution from mutual funds

      —       —       39,325       63,982       1,098,060  

Change in unrealized appreciation (depreciation) of investments

      (25,693,098 )      (119,661 )      (622,832 )      (311,575 )      (2,803,905 ) 

Increase (decrease) in net assets from operations

      (28,236,294 )      (123,223 )      (623,755 )      (207,433 )      (1,329,106 ) 

From contract transactions:

           

Payments received from contract owners

      42,262,638       107,957       11,926       —       27,627  

Payments for contract benefits or terminations

      (6,711,735 )      (18,671 )      (471,016 )      (160,526 )      (590,855 ) 

Transfers between sub-accounts (including fixed account), net

      (6,747,387 )      407,013       (280,598 )      (16,321 )      2,013  

Contract maintenance charges

      (2,925,613 )      (13,537 )      (3,884 )      (861 )      (10,205 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       7       (29 )      (9 ) 

Increase (decrease) in net assets from contract transactions

      25,877,903       482,762       (743,565 )      (177,737 )      (571,429 ) 

Increase (decrease) in net assets

      (2,358,391 )      359,539       (1,367,320 )      (385,170 )      (1,900,535 ) 

Net assets at beginning of period

      171,305,014       805,561       4,461,991       1,029,381       11,478,756  

Net assets at end of period

    $ 168,946,623     $ 1,165,100     $ 3,094,671     $ 644,211     $ 9,578,221  

Beginning units

      16,444,965       75,950       409,626       93,837       380,810  

Units issued

      6,878,631       65,081       7,899       1,201       5,239  

Units redeemed

      (4,136,879 )      (12,132 )      (82,064 )      (20,828 )      (25,825 ) 

Ending units

      19,186,717       128,899       335,461       74,210       360,224  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

22

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      PVC Equity
Income Account
Class 2		   PVC
Government &
High Quality
Bond Account
Class 1		   PVC Large Cap
Growth
Account
I Class 1		   PVC MidCap
Account Class 1		   PVC MidCap
Account Class 2

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 103,061     $ 27,833     $ —     $ —     $ —  

Mortality and expense risk and administrative charges

      (84,999 )      (18,786 )      (17,390 )      (21,814 )      (8,252 ) 

Net investment income (loss)

      18,062       9,047       (17,390 )      (21,814 )      (8,252 ) 

Net realized gain (loss)

      213,651       (83,848 )      845       181       3,858  

Capital gain distribution from mutual funds

      255,063       —       56,804       35,354       12,855  

Change in unrealized appreciation (depreciation) of investments

      (18,253 )      104,736       324,754       316,928       102,416  

Increase (decrease) in net assets from operations

      468,523       29,935       365,013       330,649       110,877  

From contract transactions:

           

Payments received from contract owners

      —       —       —       360       —  

Payments for contract benefits or terminations

      (473,533 )      (189,151 )      (129,549 )      (239,048 )      (40,060 ) 

Transfers between sub-accounts (including fixed account), net

      47,981       (130,769 )      12,175       (9,460 )      (1,619 ) 

Contract maintenance charges

      (12,646 )      (847 )      (205 )      (2,025 )      (85 ) 

Increase (decrease) in net assets from contract transactions

      (438,198 )      (320,767 )      (117,579 )      (250,173 )      (41,764 ) 

Increase (decrease) in net assets

      30,325       (290,832 )      247,434       80,476       69,113  

Net assets at beginning of period

      5,548,304       1,371,544       998,034       1,477,768       489,202  

Net assets at end of period

    $ 5,578,629     $ 1,080,712     $ 1,245,468     $ 1,558,244     $ 558,315  

Beginning units

      229,452       183,074       83,706       39,531       14,300  

Units issued

      4,519       1,547       1,496       61       14  

Units redeemed

      (22,552 )      (43,896 )      (9,637 )      (6,050 )      (1,140 ) 

Ending units

      211,419       140,725       75,565       33,542       13,174  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 100,926     $ 22,853     $ —     $ 2,987     $ —  

Mortality and expense risk and administrative charges

      (93,952 )      (27,956 )      (18,152 )      (24,364 )      (9,159 ) 

Net investment income (loss)

      6,974       (5,103 )      (18,152 )      (21,377 )      (9,159 ) 

Net realized gain (loss)

      386,290       (113,205 )      6,197       22,994       1,633  

Capital gain distribution from mutual funds

      649,928       —       137,189       165,610       59,494  

Change in unrealized appreciation (depreciation) of investments

      (1,860,831 )      (166,691 )      (695,101 )      (695,406 )      (230,790 ) 

Increase (decrease) in net assets from operations

      (817,639 )      (284,999 )      (569,867 )      (528,179 )      (178,822 ) 

From contract transactions:

           

Payments received from contract owners

      —       200       —       360       —  

Payments for contract benefits or terminations

      (557,616 )      (488,647 )      (101,102 )      (257,305 )      (66,689 ) 

Transfers between sub-accounts (including fixed account), net

      (124,496 )      (155,602 )      18,874       10,071       1,542  

Contract maintenance charges

      (13,735 )      (2,465 )      (242 )      (2,134 )      (83 ) 

Adjustments to net assets allocated to contracts in payout period

      —       (1 )      —       29       —  

Increase (decrease) in net assets from contract transactions

      (695,847 )      (646,515 )      (82,470 )      (248,979 )      (65,230 ) 

Increase (decrease) in net assets

      (1,513,486 )      (931,514 )      (652,337 )      (777,158 )      (244,052 ) 

Net assets at beginning of period

      7,061,790       2,303,058       1,650,371       2,254,926       733,254  

Net assets at end of period

    $ 5,548,304     $ 1,371,544     $ 998,034     $ 1,477,768     $ 489,202  

Beginning units

      256,728       269,791       89,763       46,189       16,211  

Units issued

      1,078       1,207       1,424       336       63  

Units redeemed

      (28,354 )      (87,924 )      (7,481 )      (6,994 )      (1,974 ) 

Ending units

      229,452       183,074       83,706       39,531       14,300  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

23

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      PVC Principal
Capital
Appreciation
Account Class 1		   PVC Principal
Capital
Appreciation
Account Class 2		   PVC Real Estate
Securities
Account Class 1		   PVC Real Estate
Securities
Account Class 2		   PVC SAM
Balanced
Portfolio Class 1

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 85,024     $ 11,081     $ 6,646     $ 3,176     $ 457,712  

Mortality and expense risk and administrative charges

      (149,263 )      (27,085 )      (5,157 )      (2,965 )      (308,522 ) 

Net investment income (loss)

      (64,239 )      (16,004 )      1,489       211       149,190  

Net realized gain (loss)

      389,202       81,685       (1,107 )      (1,720 )      (704,372 ) 

Capital gain distribution from mutual funds

      666,106       109,816       12,274       6,736       815,788  

Change in unrealized appreciation (depreciation) of investments

      1,223,029       180,288       26,195       14,629       2,457,234  

Increase (decrease) in net assets from operations

      2,214,098       355,785       38,851       19,856       2,717,840  

From contract transactions:

           

Payments received from contract owners

      480       —       —       —       600  

Payments for contract benefits or terminations

      (883,657 )      (265,207 )      (61,601 )      (20,624 )      (3,776,336 ) 

Transfers between sub-accounts (including fixed account), net

      (20,022 )      (53,223 )      (6,628 )      1,979       190,596  

Contract maintenance charges

      (6,541 )      (295 )      (711 )      (124 )      (7,283 ) 

Adjustments to net assets allocated to contracts in payout period

      (4,589 )      —       —       —       —  

Increase (decrease) in net assets from contract transactions

      (914,329 )      (318,725 )      (68,940 )      (18,769 )      (3,592,423 ) 

Increase (decrease) in net assets

      1,299,769       37,060       (30,089 )      1,087       (874,583 ) 

Net assets at beginning of period

      9,790,906       1,788,868       381,385       195,906       20,807,097  

Net assets at end of period

    $ 11,090,675     $ 1,825,928     $ 351,296     $ 196,993     $ 19,932,514  

Beginning units

      242,686       48,506       9,305       5,101       1,103,936  

Units issued

      238       60       73       200       10,833  

Units redeemed

      (20,061 )      (8,531 )      (1,703 )      (686 )      (192,348 ) 

Ending units

      222,863       40,035       7,675       4,615       922,421  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 82,730     $ 12,023     $ 5,396     $ 2,288     $ 535,127  

Mortality and expense risk and administrative charges

      (150,520 )      (30,936 )      (6,110 )      (3,499 )      (347,391 ) 

Net investment income (loss)

      (67,790 )      (18,913 )      (714 )      (1,211 )      187,736  

Net realized gain (loss)

      285,801       102,406       8,053       4,417       (191,244 ) 

Capital gain distribution from mutual funds

      1,235,144       234,862       29,846       15,243       2,968,680  

Change in unrealized appreciation (depreciation) of investments

      (3,639,580 )      (736,363 )      (175,550 )      (90,223 )      (7,588,040 ) 

Increase (decrease) in net assets from operations

      (2,186,425 )      (418,008 )      (138,365 )      (71,774 )      (4,622,868 ) 

From contract transactions:

           

Payments received from contract owners

      22,547       —       —       —       5,128  

Payments for contract benefits or terminations

      (587,219 )      (139,926 )      (11,763 )      (8,429 )      (1,379,603 ) 

Transfers between sub-accounts (including fixed account), net

      (14,898 )      (79,580 )      124       2,979       (132,784 ) 

Contract maintenance charges

      (6,837 )      (294 )      (835 )      (113 )      (7,375 ) 

Adjustments to net assets allocated to contracts in payout period

      372       —       —       —       20  

Increase (decrease) in net assets from contract transactions

      (586,035 )      (219,800 )      (12,474 )      (5,563 )      (1,514,614 ) 

Increase (decrease) in net assets

      (2,772,460 )      (637,808 )      (150,839 )      (77,337 )      (6,137,482 ) 

Net assets at beginning of period

      12,563,366       2,426,676       532,224       273,243       26,944,579  

Net assets at end of period

    $ 9,790,906     $ 1,788,868     $ 381,385     $ 195,906     $ 20,807,097  

Beginning units

      256,701       53,981       9,548       5,210       1,181,363  

Units issued

      1,810       73       111       102       4,912  

Units redeemed

      (15,825 )      (5,548 )      (354 )      (211 )      (82,339 ) 

Ending units

      242,686       48,506       9,305       5,101       1,103,936  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

24

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
     

PVC SAM
Balanced

Portfolio Class 2

   PVC SAM
Conservative
Balanced
Portfolio Class 1		   PVC SAM
Conservative
Balanced
Portfolio Class 2		   PVC SAM
Conservative
Growth Portfolio
Class 1		   PVC SAM
Conservative
Growth Portfolio
Class 2

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 387,919     $ 56,828     $ 40,629     $ 194,345     $ 165,573  

Mortality and expense risk and administrative charges

      (283,475 )      (30,953 )      (23,928 )      (171,678 )      (171,223 ) 

Net investment income (loss)

      104,444       25,875       16,701       22,667       (5,650 ) 

Net realized gain (loss)

      (288,371 )      (29,904 )      (54,993 )      102,887       61,666  

Capital gain distribution from mutual funds

      771,876       13,985       10,967       567,127       558,370  

Change in unrealized appreciation (depreciation) of investments

      1,694,731       190,996       170,222       1,090,783       1,099,378  

Increase (decrease) in net assets from operations

      2,282,680       200,952       142,897       1,783,464       1,713,764  

From contract transactions:

           

Payments received from contract owners

      —       —       —       1,500       —  

Payments for contract benefits or terminations

      (1,440,471 )      (179,387 )      (355,955 )      (2,206,397 )      (704,003 ) 

Transfers between sub-accounts (including fixed account), net

      (9,645 )      (2 )      49       (34,391 )      (176,581 ) 

Contract maintenance charges

      (27,849 )      (598 )      (637 )      (3,666 )      (21,520 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       —       (975 )      —  

Increase (decrease) in net assets from contract transactions

      (1,477,965 )      (179,987 )      (356,543 )      (2,243,929 )      (902,104 ) 

Increase (decrease) in net assets

      804,715       20,965       (213,646 )      (460,465 )      811,660  

Net assets at beginning of period

      17,418,067       2,063,703       1,672,998       10,861,521       10,415,098  

Net assets at end of period

    $ 18,222,782     $ 2,084,668     $ 1,459,352     $ 10,401,056     $ 11,226,758  

Beginning units

      986,927       169,285       144,710       508,536       518,445  

Units issued

      4,592       —       2,440       1,051       6,291  

Units redeemed

      (83,997 )      (13,935 )      (32,577 )      (98,408 )      (47,806 ) 

Ending units

      907,522       155,350       114,573       411,179       476,930  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 417,775     $ 53,716     $ 46,109     $ 251,269     $ 220,323  

Mortality and expense risk and administrative charges

      (317,889 )      (33,485 )      (33,350 )      (186,890 )      (186,228 ) 

Net investment income (loss)

      99,886       20,231       12,759       64,379       34,095  

Net realized gain (loss)

      (103,851 )      (4,817 )      (42,382 )      88,471       127,635  

Capital gain distribution from mutual funds

      2,600,729       204,242       195,062       1,292,152       1,296,627  

Change in unrealized appreciation (depreciation) of investments

      (6,773,155 )      (616,356 )      (567,237 )      (4,127,302 )      (4,145,093 ) 

Increase (decrease) in net assets from operations

      (4,176,391 )      (396,700 )      (401,798 )      (2,682,300 )      (2,686,736 ) 

From contract transactions:

           

Payments received from contract owners

      (1,044 )      —       —       1,560       53,173  

Payments for contract benefits or terminations

      (2,654,223 )      (84,796 )      (533,670 )      (645,225 )      (1,120,157 ) 

Transfers between sub-accounts (including fixed account), net

      (623,205 )      1       (749 )      (27,340 )      120,354  

Contract maintenance charges

      (29,465 )      (560 )      (749 )      (3,763 )      (23,871 ) 

Adjustments to net assets allocated to contracts in payout period

      4       (23 )      (46 )      51       104,735  

Increase (decrease) in net assets from contract transactions

      (3,307,933 )      (85,378 )      (535,214 )      (674,717 )      (865,766 ) 

Increase (decrease) in net assets

      (7,484,324 )      (482,078 )      (937,012 )      (3,357,017 )      (3,552,502 ) 

Net assets at beginning of period

      24,902,391       2,545,781       2,610,010       14,218,538       13,967,600  

Net assets at end of period

    $ 17,418,067     $ 2,063,703     $ 1,672,998     $ 10,861,521     $ 10,415,098  

Beginning units

      1,161,402       175,863       190,341       538,693       561,163  

Units issued

      24,640       —       104       1,188       38,356  

Units redeemed

      (199,115 )      (6,578 )      (45,735 )      (31,345 )      (81,074 ) 

Ending units

      986,927       169,285       144,710       508,536       518,445  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

25

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      PVC SAM
Flexible Income
Portfolio Class 1		   PVC SAM
Flexible Income
Portfolio Class 2		   PVC SAM
Strategic Growth
Portfolio Class 1		   PVC SAM
Strategic Growth
Portfolio Class 2		   PVC Short-Term
Income Account
Class 1

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 81,499     $ 80,878     $ 41,131     $ 52,947     $ 13,482  

Mortality and expense risk and administrative charges

      (35,124 )      (41,990 )      (43,584 )      (69,705 )      (14,097 ) 

Net investment income (loss)

      46,375       38,888       (2,453 )      (16,758 )      (615 ) 

Net realized gain (loss)

      (161,389 )      (154,643 )      (139,951 )      19,585       (13,303 ) 

Capital gain distribution from mutual funds

      —       —       106,190       163,919       —  

Change in unrealized appreciation (depreciation) of investments

      271,421       306,522       586,363       585,307       48,091  

Increase (decrease) in net assets from operations

      156,407       190,767       550,149       752,053       34,173  

From contract transactions:

           

Payments received from contract owners

      960       —       1,920       3,375       6,287  

Payments for contract benefits or terminations

      (506,704 )      (596,361 )      (71,095 )      (382,453 )      (371,708 ) 

Transfers between sub-accounts (including fixed account), net

      (96,972 )      7,268       60,438       (29,650 )      (37 ) 

Contract maintenance charges

      (1,423 )      (1,055 )      (1,021 )      (6,313 )      (787 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       (909 )      —       —  

Increase (decrease) in net assets from contract transactions

      (604,139 )      (590,148 )      (10,667 )      (415,041 )      (366,245 ) 

Increase (decrease) in net assets

      (447,732 )      (399,381 )      539,482       337,012       (332,072 ) 

Net assets at beginning of period

      2,435,365       2,947,040       2,608,838       4,103,538       1,077,588  

Net assets at end of period

    $ 1,987,633     $ 2,547,659     $ 3,148,320     $ 4,440,550     $ 745,516  

Beginning units

      186,944       240,353       104,850       178,445       147,287  

Units issued

      315       607       20,600       1,313       3,608  

Units redeemed

      (44,955 )      (47,900 )      (19,878 )      (18,578 )      (53,522 ) 

Ending units

      142,304       193,060       105,572       161,180       97,373  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 88,576     $ 93,896     $ 61,102     $ 87,919     $ 13,113  

Mortality and expense risk and administrative charges

      (49,663 )      (58,762 )      (44,237 )      (75,050 )      (19,200 ) 

Net investment income (loss)

      38,913       35,134       16,865       12,869       (6,087 ) 

Net realized gain (loss)

      (199,520 )      (201,205 )      83,103       265,738       (15,353 ) 

Capital gain distribution from mutual funds

      239,884       278,783       298,062       488,509       1,628  

Change in unrealized appreciation (depreciation) of investments

      (647,657 )      (750,879 )      (1,138,414 )      (1,930,668 )      (46,521 ) 

Increase (decrease) in net assets from operations

      (568,380 )      (638,167 )      (740,384 )      (1,163,552 )      (66,333 ) 

From contract transactions:

           

Payments received from contract owners

      960       —       1,920       3,075       9,804  

Payments for contract benefits or terminations

      (996,998 )      (734,003 )      (262,028 )      (977,052 )      (127,863 ) 

Transfers between sub-accounts (including fixed account), net

      (40,407 )      (92,429 )      47,259       (212,139 )      (501,765 ) 

Contract maintenance charges

      (1,797 )      (1,835 )      (1,127 )      (6,956 )      (953 ) 

Adjustments to net assets allocated to contracts in payout period

      10       6       (17 )      —       1,071  

Increase (decrease) in net assets from contract transactions

      (1,038,232 )      (828,261 )      (213,993 )      (1,193,072 )      (619,706 ) 

Increase (decrease) in net assets

      (1,606,612 )      (1,466,428 )      (954,377 )      (2,356,624 )      (686,039 ) 

Net assets at beginning of period

      4,041,977       4,413,468       3,563,215       6,460,162       1,763,627  

Net assets at end of period

    $ 2,435,365     $ 2,947,040     $ 2,608,838     $ 4,103,538     $ 1,077,588  

Beginning units

      266,989       308,145       114,573       224,603       231,456  

Units issued

      164       51,305       41,995       772       2,900  

Units redeemed

      (80,209 )      (119,097 )      (51,718 )      (46,930 )      (87,069 ) 

Ending units

      186,944       240,353       104,850       178,445       147,287  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

26

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      PVC SmallCap
Account Class 1		   PVC SmallCap
Account Class 2		   SST SA
Allocation
Balanced
Portfolio Class 1		  

SST SA

Allocation
Balanced
Portfolio Class 3

  

SST SA
Allocation
Growth Portfolio

Class 1

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 1,137     $ 96     $ 889     $ 3,233,804     $ 24,771  

Mortality and expense risk and administrative charges

      (6,141 )      (3,683 )      (250 )      (1,997,407 )      (14,795 ) 

Net investment income (loss)

      (5,004 )      (3,587 )      639       1,236,397       9,976  

Net realized gain (loss)

      (10,074 )      (8,109 )      (4,981 )      (3,576,403 )      (707,597 ) 

Capital gain distribution from mutual funds

      —       —       1,894       7,678,193       91,923  

Change in unrealized appreciation (depreciation) of investments

      62,100       40,484       7,127       8,482,778       1,092,732  

Increase (decrease) in net assets from operations

      47,022       28,788       4,679       13,820,965       487,034  

From contract transactions:

           

Payments received from contract owners

      —       —       80       5,673,941       45,000  

Payments for contract benefits or terminations

      (99,937 )      (81,564 )      (8,212 )      (16,146,106 )      (32,082 ) 

Transfers between sub-accounts (including fixed account), net

      1,922       836       (25,957 )      2,299,127       (3,455,859 ) 

Contract maintenance charges

      (247 )      (29 )      (280 )      (2,259,932 )      (16,832 ) 

Increase (decrease) in net assets from contract transactions

      (98,262 )      (80,757 )      (34,369 )      (10,432,970 )      (3,459,773 ) 

Increase (decrease) in net assets

      (51,240 )      (51,969 )      (29,690 )      3,387,995       (2,972,739 ) 

Net assets at beginning of period

      403,440       267,713       66,756       146,001,778       4,087,123  

Net assets at end of period

    $ 352,200     $ 215,744     $ 37,066     $ 149,389,773     $ 1,114,384  

Beginning units

      23,521       16,660       5,478       8,868,358       285,042  

Units issued

      129       73       42       726,015       122,168  

Units redeemed

      (5,551 )      (4,895 )      (2,787 )      (1,349,080 )      (340,828 ) 

Ending units

      18,099       11,838       2,733       8,245,293       66,382  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 259     $ —     $ 2,088     $ 4,153,391     $ 110,952  

Mortality and expense risk and administrative charges

      (7,226 )      (4,597 )      (829 )      (2,130,210 )      (23,451 ) 

Net investment income (loss)

      (6,967 )      (4,597 )      1,259       2,023,181       87,501  

Net realized gain (loss)

      11,383       (1,260 )      (20,875 )      (3,044,937 )      (83,263 ) 

Capital gain distribution from mutual funds

      76,616       52,326       3,446       7,554,387       238,964  

Change in unrealized appreciation (depreciation) of investments

      (211,644 )      (124,428 )      (21,807 )      (35,998,567 )      (1,177,982 ) 

Increase (decrease) in net assets from operations

      (130,612 )      (77,959 )      (37,977 )      (29,465,936 )      (934,780 ) 

From contract transactions:

           

Payments received from contract owners

      —       —       100,080       14,869,468       97,965  

Payments for contract benefits or terminations

      (95,360 )      (9,313 )      (584 )      (14,283,733 )      (1,290 ) 

Transfers between sub-accounts (including fixed account), net

      746       2,698       (175,179 )      3,558,474       3,961,550  

Contract maintenance charges

      (260 )      (29 )      (273 )      (2,332,453 )      (15,322 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       —       2,522       —  

Increase (decrease) in net assets from contract transactions

      (94,874 )      (6,644 )      (75,956 )      1,814,278       4,042,903  

Increase (decrease) in net assets

      (225,486 )      (84,603 )      (113,933 )      (27,651,658 )      3,108,123  

Net assets at beginning of period

      628,926       352,316       180,689       173,653,436       979,000  

Net assets at end of period

    $ 403,440     $ 267,713     $ 66,756     $ 146,001,778     $ 4,087,123  

Beginning units

      28,923       17,082       12,565       8,817,411       56,095  

Units issued

      133       335       7,942       1,437,345       285,656  

Units redeemed

      (5,535 )      (757 )      (15,029 )      (1,386,398 )      (56,709 ) 

Ending units

      23,521       16,660       5,478       8,868,358       285,042  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

27

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SST SA
Allocation
Growth Portfolio
Class 3		   SST SA
Allocation
Moderate
Growth Portfolio
Class 1		   SST SA
Allocation
Moderate
Growth Portfolio
Class 3		   SST SA
Allocation
Moderate
Portfolio Class 1		   SST SA
Allocation
Moderate
Portfolio Class 3

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 5,636,232     $ 8,430     $ 5,055,873     $ 5,003     $ 3,887,721  

Mortality and expense risk and administrative charges

      (3,349,398 )      (1,359 )      (3,037,609 )      (806 )      (2,396,189 ) 

Net investment income (loss)

      2,286,834       7,071       2,018,264       4,197       1,491,532  

Net realized gain (loss)

      (796,815 )      (545 )      (4,875,454 )      (257 )      (3,679,304 ) 

Capital gain distribution from mutual funds

      23,125,881       25,594       17,012,235       13,687       11,820,022  

Change in unrealized appreciation (depreciation) of investments

      13,190,652       12,605       13,318,864       6,966       9,915,091  

Increase (decrease) in net assets from operations

      37,806,552       44,725       27,473,909       24,593       19,547,341  

From contract transactions:

           

Payments received from contract owners

      17,972,222       —       6,904,159       —       6,038,367  

Payments for contract benefits or terminations

      (18,252,985 )      (6,198 )      (18,551,094 )      (3,554 )      (17,702,634 ) 

Transfers between sub-accounts (including fixed account), net

      2,145,035       8,492       572,792       1,664       509,034  

Contract maintenance charges

      (4,319,617 )      (5,922 )      (3,298,143 )      (3,112 )      (2,598,019 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       303       —       —  

Increase (decrease) in net assets from contract transactions

      (2,455,345 )      (3,628 )      (14,371,983 )      (5,002 )      (13,753,252 ) 

Increase (decrease) in net assets

      35,351,207       41,097       13,101,926       19,591       5,794,089  

Net assets at beginning of period

      241,918,979       300,596       211,697,344       185,820       168,532,888  

Net assets at end of period

    $ 277,270,186     $ 341,693     $ 224,799,270     $ 205,411     $ 174,326,977  

Beginning units

      11,667,965       22,125       11,508,673       14,230       9,474,845  

Units issued

      1,181,278       640       588,158       125       500,461  

Units redeemed

      (1,290,592 )      (876 )      (1,335,216 )      (491 )      (1,232,074 ) 

Ending units

      11,558,651       21,889       10,761,615       13,864       8,743,232  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 6,022,828     $ 9,847     $ 6,319,012     $ 6,115     $ 5,075,067  

Mortality and expense risk and administrative charges

      (3,185,577 )      (1,798 )      (3,156,965 )      (644 )      (2,543,870 ) 

Net investment income (loss)

      2,837,251       8,049       3,162,047       5,471       2,531,197  

Net realized gain (loss)

      462,515       (27,823 )      (4,178,120 )      (129 )      (4,521,190 ) 

Capital gain distribution from mutual funds

      14,301,013       20,964       14,830,967       12,573       11,502,872  

Change in unrealized appreciation (depreciation) of investments

      (69,720,580 )      (79,531 )      (60,474,779 )      (45,676 )      (46,252,584 ) 

Increase (decrease) in net assets from operations

      (52,119,801 )      (78,341 )      (46,659,885 )      (27,761 )      (36,739,705 ) 

From contract transactions:

           

Payments received from contract owners

      33,785,499       266,000       17,344,115       66,000       12,469,163  

Payments for contract benefits or terminations

      (14,880,473 )      (2,519 )      (18,210,001 )      (1,175 )      (17,525,710 ) 

Transfers between sub-accounts (including fixed account), net

      2,701,415       (155,817 )      1,411,282       28       970,382  

Contract maintenance charges

      (4,227,364 )      (5,326 )      (3,437,071 )      (2,562 )      (2,772,806 ) 

Adjustments to net assets allocated to contracts in payout period

      4,584       —       —       —       2,275  

Increase (decrease) in net assets from contract transactions

      17,383,661       102,338       (2,891,675 )      62,291       (6,856,696 ) 

Increase (decrease) in net assets

      (34,736,140 )      23,997       (49,551,560 )      34,530       (43,596,401 ) 

Net assets at beginning of period

      276,655,119       276,599       261,248,904       151,290       212,129,289  

Net assets at end of period

    $ 241,918,979     $ 300,596     $ 211,697,344     $ 185,820     $ 168,532,888  

Beginning units

      10,867,721       16,906       11,679,436       9,690       9,863,746  

Units issued

      2,065,469       19,299       1,223,571       4,905       999,790  

Units redeemed

      (1,265,225 )      (14,080 )      (1,394,334 )      (365 )      (1,388,691 ) 

Ending units

      11,667,965       22,125       11,508,673       14,230       9,474,845  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

28

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SST SA
American
Century Inflation
Protection
Portfolio Class 1		   SST SA
American
Century Inflation
Protection
Portfolio Class 3		   SST SA
Columbia
Focused Value
Portfolio Class 3		   SST SA Multi-
Managed
Diversified Fixed
Income Portfolio
Class 3		   SST SA Multi-
Managed
International
Equity Portfolio
Class 3

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 7,982     $ 12,753,928     $ 251     $ 3,319     $ 6,502  

Mortality and expense risk and administrative charges

      (914 )      (3,904,795 )      (344 )      (1,811 )      (3,554 ) 

Net investment income (loss)

      7,068       8,849,133       (93 )      1,508       2,948  

Net realized gain (loss)

      (3,603 )      (5,025,402 )      1,414       (762 )      (7,068 ) 

Capital gain distribution from mutual funds

      —       —       1,192       —       953  

Change in unrealized appreciation (depreciation) of investments

      460       919,894       (614 )      6,351       44,234  

Increase (decrease) in net assets from operations

      3,925       4,743,625       1,899       7,097       41,067  

From contract transactions:

           

Payments received from contract owners

      —       7,475,833       —       —       —  

Payments for contract benefits or terminations

      —       (25,751,607 )      (44,045 )      (1,338 )      (61,548 ) 

Transfers between sub-accounts (including fixed account), net

      4,177       9,686,529       (14,534 )      9,867       3,234  

Contract maintenance charges

      (2,778 )      (4,472,946 )      (14 )      (18 )      (20 ) 

Adjustments to net assets allocated to contracts in payout period

      —       12       —       —       —  

Increase (decrease) in net assets from contract transactions

      1,399       (13,062,179 )      (58,593 )      8,511       (58,334 ) 

Increase (decrease) in net assets

      5,324       (8,318,554 )      (56,694 )      15,608       (17,267 ) 

Net assets at beginning of period

      163,557       284,534,597       78,784       149,299       296,597  

Net assets at end of period

    $ 168,881     $ 276,216,043     $ 22,090     $ 164,907     $ 279,330  

Beginning units

      15,698       25,666,793       4,092       15,798       25,779  

Units issued

      2,134       3,658,286       96       1,007       267  

Units redeemed

      (2,074 )      (4,882,124 )      (3,076 )      (170 )      (4,840 ) 

Ending units

      15,758       24,442,955       1,112       16,635       21,206  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 4,285     $ 6,836,290     $ 1,311     $ 3,098     $ 5,321  

Mortality and expense risk and administrative charges

      (904 )      (4,247,285 )      (1,157 )      (1,933 )      (3,710 ) 

Net investment income (loss)

      3,381       2,589,005       154       1,165       1,611  

Net realized gain (loss)

      (82 )      404,340       8,582       (1,304 )      20,112  

Capital gain distribution from mutual funds

      2,472       4,401,359       9,222       —       20,267  

Change in unrealized appreciation (depreciation) of investments

      (26,388 )      (46,967,630 )      (20,405 )      (28,050 )      (108,684 ) 

Increase (decrease) in net assets from operations

      (20,617 )      (39,572,926 )      (2,447 )      (28,189 )      (66,694 ) 

From contract transactions:

           

Payments received from contract owners

      —       21,120,876       —       —       —  

Payments for contract benefits or terminations

      —       (26,362,748 )      (58,129 )      —       (18,195 ) 

Transfers between sub-accounts (including fixed account), net

      (6,990 )      12,270,644       (6,990 )      (4,729 )      (113,737 ) 

Contract maintenance charges

      (2,957 )      (4,787,624 )      (10 )      (19 )      (15 ) 

Adjustments to net assets allocated to contracts in payout period

      —       237       —       —       —  

Increase (decrease) in net assets from contract transactions

      (9,947 )      2,241,385       (65,129 )      (4,748 )      (131,947 ) 

Increase (decrease) in net assets

      (30,564 )      (37,331,541 )      (67,576 )      (32,937 )      (198,641 ) 

Net assets at beginning of period

      194,121       321,866,138       146,360       182,236       495,238  

Net assets at end of period

    $ 163,557     $ 284,534,597     $ 78,784     $ 149,299     $ 296,597  

Beginning units

      16,505       25,499,567       7,377       16,283       35,476  

Units issued

      1,572       7,323,821       183       185       145  

Units redeemed

      (2,379 )      (7,156,595 )      (3,468 )      (670 )      (9,842 ) 

Ending units

      15,698       25,666,793       4,092       15,798       25,779  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

29

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SST SA Multi-
Managed Large
Cap Growth
Portfolio Class 3		   SST SA Multi-
Managed Large
Cap Value
Portfolio Class 3		   SST SA Multi-
Managed Mid
Cap Growth
Portfolio Class 3		   SST SA Multi-
Managed Mid
Cap Value
Portfolio Class 3		  

SST SA Multi-
Managed Small

Cap Portfolio
Class 3

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ —     $ 3,203     $ —     $ 2,692     $ 438  

Mortality and expense risk and administrative charges

      (7,667 )      (2,092 )      (2,760 )      (3,324 )      (2,435 ) 

Net investment income (loss)

      (7,667 )      1,111       (2,760 )      (632 )      (1,997 ) 

Net realized gain (loss)

      (23,744 )      (2,920 )      (30,329 )      (399 )      (11,477 ) 

Capital gain distribution from mutual funds

      2,100       22,818       —       21,536       6,823  

Change in unrealized appreciation (depreciation) of investments

      204,892       (3,507 )      72,621       11,759       26,667  

Increase (decrease) in net assets from operations

      175,581       17,502       39,532       32,264       20,016  

From contract transactions:

           

Payments for contract benefits or terminations

      (21,745 )      (15,984 )      (32,705 )      (19,547 )      (37,298 ) 

Transfers between sub-accounts (including fixed account), net

      (13,402 )      3,899       (155 )      12,874       1,964  

Contract maintenance charges

      (18 )      (14 )      (18 )      (39 )      (14 ) 

Increase (decrease) in net assets from contract transactions

      (35,165 )      (12,099 )      (32,878 )      (6,712 )      (35,348 ) 

Increase (decrease) in net assets

      140,416       5,403       6,654       25,552       (15,332 ) 

Net assets at beginning of period

      508,697       168,630       222,349       271,739       186,943  

Net assets at end of period

    $ 649,113     $ 174,033     $ 229,003     $ 297,291     $ 171,611  

Beginning units

      30,996       10,628       12,528       17,554       12,935  

Units issued

      4       242       78       841       159  

Units redeemed

      (1,648 )      (987 )      (1,772 )      (1,268 )      (2,464 ) 

Ending units

      29,352       9,883       10,834       17,127       10,630  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ —     $ 3,114     $ —     $ 1,540     $ 268  

Mortality and expense risk and administrative charges

      (7,449 )      (2,579 )      (2,842 )      (3,544 )      (2,530 ) 

Net investment income (loss)

      (7,449 )      535       (2,842 )      (2,004 )      (2,262 ) 

Net realized gain (loss)

      (9,577 )      (4,229 )      (8,803 )      1,836       (2,776 ) 

Capital gain distribution from mutual funds

      93,791       32,320       71,330       41,817       36,435  

Change in unrealized appreciation (depreciation) of investments

      (385,090 )      (40,397 )      (153,564 )      (74,506 )      (73,247 ) 

Increase (decrease) in net assets from operations

      (308,325 )      (11,771 )      (93,879 )      (32,857 )      (41,850 ) 

From contract transactions:

           

Payments for contract benefits or terminations

      (21,014 )      (25,219 )      (5,876 )      (8,363 )      (567 ) 

Transfers between sub-accounts (including fixed account), net

      81,723       4,860       (4,528 )      (14,816 )      (6,155 ) 

Contract maintenance charges

      (28 )      (10 )      (19 )      (25 )      (10 ) 

Increase (decrease) in net assets from contract transactions

      60,681       (20,369 )      (10,423 )      (23,204 )      (6,732 ) 

Increase (decrease) in net assets

      (247,644 )      (32,140 )      (104,302 )      (56,061 )      (48,582 ) 

Net assets at beginning of period

      756,341       200,770       326,651       327,800       235,525  

Net assets at end of period

    $ 508,697     $ 168,630     $ 222,349     $ 271,739     $ 186,943  

Beginning units

      28,388       12,115       12,865       19,084       13,358  

Units issued

      3,626       1,787       1,053       2       97  

Units redeemed

      (1,018 )      (3,274 )      (1,390 )      (1,532 )      (520 ) 

Ending units

      30,996       10,628       12,528       17,554       12,935  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

30

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SST SA Putnam
Asset Allocation
Diversified
Growth Portfolio
Class 1		   SST SA Putnam
Asset Allocation
Diversified
Growth Portfolio
Class 3		   SST SA T. Rowe
Price Growth
Stock Portfolio
Class 3		   SAST SA AB
Growth Portfolio
Class 1		  

SAST SA AB
Growth Portfolio

Class 2

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 8,301     $ 1,434,360     $ —     $ —     $ —  

Mortality and expense risk and administrative charges

      (2,058 )      (1,171,267 )      (4,166 )      (5,791,504 )      (708,521 ) 

Net investment income (loss)

      6,243       263,093       (4,166 )      (5,791,504 )      (708,521 ) 

Net realized gain (loss)

      (1,488 )      (1,398,486 )      (62,545 )      7,951,142       1,173,327  

Capital gain distribution from mutual funds

      —       —       17,362       28,941,198       3,474,779  

Change in unrealized appreciation (depreciation) of investments

      66,923       17,356,517       181,364       78,908,216       8,889,103  

Increase (decrease) in net assets from operations

      71,678       16,221,124       132,015       110,009,052       12,828,688  

From contract transactions:

           

Payments received from contract owners

      145,000       3,445,402       —       1,705,065       465,954  

Payments for contract benefits or terminations

      (720 )      (5,291,855 )      (107,455 )      (38,059,545 )      (5,070,936 ) 

Transfers between sub-accounts (including fixed account), net

      (1,930 )      (3,075,767 )      (19,719 )      (3,818,572 )      (1,258,780 ) 

Contract maintenance charges

      (5,540 )      (1,537,857 )      (103 )      (139,670 )      (75,984 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       —       (27,303 )      (6,227 ) 

Increase (decrease) in net assets from contract transactions

      136,810       (6,460,077 )      (127,277 )      (40,340,025 )      (5,945,973 ) 

Increase (decrease) in net assets

      208,488       9,761,047       4,738       69,669,027       6,882,715  

Net assets at beginning of period

      284,918       88,161,258       371,510       350,092,527       41,088,996  

Net assets at end of period

    $ 493,406     $ 97,922,305     $ 376,248     $ 419,761,554     $ 47,971,711  

Beginning units

      20,486       6,354,744       21,683       6,719,484       337,216  

Units issued

      9,674       379,749       276       61,007       5,257  

Units redeemed

      (710 )      (808,932 )      (6,658 )      (670,146 )      (45,965 ) 

Ending units

      29,450       5,925,561       15,301       6,110,345       296,508  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 4,139     $ 1,024,353     $ —     $ —     $ —  

Mortality and expense risk and administrative charges

      (1,501 )      (1,164,566 )      (4,685 )      (6,075,380 )      (735,328 ) 

Net investment income (loss)

      2,638       (140,213 )      (4,685 )      (6,075,380 )      (735,328 ) 

Net realized gain (loss)

      (237 )      163,256       (17,172 )      15,983,711       1,548,675  

Capital gain distribution from mutual funds

      49,221       15,219,223       65,054       61,758,059       7,279,960  

Change in unrealized appreciation (depreciation) of investments

      (106,918 )      (34,678,730 )      (288,850 )      (230,510,864 )      (26,638,817 ) 

Increase (decrease) in net assets from operations

      (55,296 )      (19,436,464 )      (245,653 )      (158,844,474 )      (18,545,510 ) 

From contract transactions:

           

Payments received from contract owners

      37,465       10,022,387       —       1,632,164       455,217  

Payments for contract benefits or terminations

      (655 )      (4,984,582 )      (12,685 )      (36,374,818 )      (4,132,484 ) 

Transfers between sub-accounts (including fixed account), net

      1,437       3,326,591       43,936       (8,291,378 )      (345,777 ) 

Contract maintenance charges

      (5,176 )      (1,606,165 )      (69 )      (133,844 )      (77,881 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       —       (19,859 )      6,028  

Increase (decrease) in net assets from contract transactions

      33,071       6,758,231       31,182       (43,187,735 )      (4,094,897 ) 

Increase (decrease) in net assets

      (22,225 )      (12,678,233 )      (214,471 )      (202,032,209 )      (22,640,407 ) 

Net assets at beginning of period

      307,143       100,839,491       585,981       552,124,736       63,729,403  

Net assets at end of period

    $ 284,918     $ 88,161,258     $ 371,510     $ 350,092,527     $ 41,088,996  

Beginning units

      18,179       5,929,487       19,936       7,330,606       367,252  

Units issued

      2,808       1,158,482       3,051       99,525       13,911  

Units redeemed

      (501 )      (733,225 )      (1,304 )      (710,647 )      (43,947 ) 

Ending units

      20,486       6,354,744       21,683       6,719,484       337,216  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

31

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA AB
Growth Portfolio
Class 3		   SAST SA AB
Small & Mid Cap
Value Portfolio
Class 1		   SAST SA AB
Small & Mid Cap
Value Portfolio
Class 2		   SAST SA AB
Small & Mid Cap
Value Portfolio
Class 3		   SAST SA
American Funds
Asset Allocation
Portfolio Class 1

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ —     $ 7,849     $ 61,767     $ 2,028,455     $ 203,926  

Mortality and expense risk and administrative charges

      (6,642,209 )      (3,868 )      (131,295 )      (4,549,778 )      (37,867 ) 

Net investment income (loss)

      (6,642,209 )      3,981       (69,528 )      (2,521,323 )      166,059  

Net realized gain (loss)

      9,307,398       (9,972 )      (394,098 )      (8,400,885 )      114,960  

Capital gain distribution from mutual funds

      36,549,998       74,835       721,119       27,086,208       748,498  

Change in unrealized appreciation (depreciation) of investments

      92,079,644       61,927       923,467       27,237,538       (47,564 ) 

Increase (decrease) in net assets from operations

      131,294,831       130,771       1,180,960       43,401,538       981,953  

From contract transactions:

           

Payments received from contract owners

      30,207,741       85,642       4,346       11,329,282       100,000  

Payments for contract benefits or terminations

      (43,197,606 )      (31,751 )      (676,464 )      (30,219,842 )      (581,634 ) 

Transfers between sub-accounts (including fixed account), net

      (28,278,019 )      110,056       (2,627 )      (855,363 )      149,260  

Contract maintenance charges

      (4,431,704 )      (2,327 )      (22,181 )      (3,295,575 )      (110,469 ) 

Adjustments to net assets allocated to contracts in payout period

      4,852       —       11,384       242       —  

Increase (decrease) in net assets from contract transactions

      (45,694,736 )      161,620       (685,542 )      (23,041,256 )      (442,843 ) 

Increase (decrease) in net assets

      85,600,095       292,391       495,418       20,360,282       539,110  

Net assets at beginning of period

      416,671,422       634,606       8,460,448       300,963,834       7,468,299  

Net assets at end of period

    $ 502,271,517     $ 926,997     $ 8,955,866     $ 321,324,116     $ 8,007,409  

Beginning units

      7,410,398       52,915       191,083       9,403,424       525,617  

Units issued

      928,583       17,940       4,350       954,169       18,009  

Units redeemed

      (1,410,135 )      (4,346 )      (19,696 )      (1,564,152 )      (47,789 ) 

Ending units

      6,928,846       66,509       175,737       8,793,441       495,837  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ —     $ 9,690     $ 83,535     $ 2,664,275     $ 157,190  

Mortality and expense risk and administrative charges

      (6,407,412 )      (4,585 )      (147,749 )      (4,919,069 )      (37,129 ) 

Net investment income (loss)

      (6,407,412 )      5,105       (64,214 )      (2,254,794 )      120,061  

Net realized gain (loss)

      10,397,741       (34,789 )      (14,119 )      (1,064,107 )      83,608  

Capital gain distribution from mutual funds

      74,193,380       219,310       2,279,603       81,913,968       259,410  

Change in unrealized appreciation (depreciation) of investments

      (244,592,572 )      (351,016 )      (4,087,228 )      (143,876,381 )      (1,627,483 ) 

Increase (decrease) in net assets from operations

      (166,408,863 )      (161,390 )      (1,885,958 )      (65,281,314 )      (1,164,404 ) 

From contract transactions:

           

Payments received from contract owners

      48,142,136       59,465       10,128       19,244,968       661,718  

Payments for contract benefits or terminations

      (36,309,365 )      (57,730 )      (739,347 )      (31,223,412 )      (225,961 ) 

Transfers between sub-accounts (including fixed account), net

      28,008,802       (201,170 )      (168,303 )      (834,852 )      (80,971 ) 

Contract maintenance charges

      (3,991,071 )      (2,220 )      (23,727 )      (3,414,040 )      (114,987 ) 

Adjustments to net assets allocated to contracts in payout period

      17,349       —       (7,580 )      13,144       —  

Increase (decrease) in net assets from contract transactions

      35,867,851       (201,655 )      (928,829 )      (16,214,192 )      239,799  

Increase (decrease) in net assets

      (130,541,012 )      (363,045 )      (2,814,787 )      (81,495,506 )      (924,605 ) 

Net assets at beginning of period

      547,212,434       997,651       11,275,235       382,459,340       8,392,904  

Net assets at end of period

    $ 416,671,422     $ 634,606     $ 8,460,448     $ 300,963,834     $ 7,468,299  

Beginning units

      6,497,542       69,775       210,906       9,773,990       508,474  

Units issued

      1,836,029       5,091       2,950       1,362,224       53,483  

Units redeemed

      (923,173 )      (21,951 )      (22,773 )      (1,732,790 )      (36,340 ) 

Ending units

      7,410,398       52,915       191,083       9,403,424       525,617  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

32

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
American Funds
Asset Allocation
Portfolio Class 3		   SAST SA
American Funds
Global Growth
Portfolio Class 1		   SAST SA
American Funds
Global Growth
Portfolio Class 3		   SAST SA
American Funds
Growth Portfolio
Class 1		   SAST SA
American Funds
Growth Portfolio
Class 3

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 37,933,583     $ 12,339     $ 2,349,966     $ 45,395     $ 10,321,838  

Mortality and expense risk and administrative charges

      (19,460,084 )      (6,201 )      (4,898,058 )      (15,274 )      (9,922,502 ) 

Net investment income (loss)

      18,473,499       6,138       (2,548,092 )      30,121       399,336  

Net realized gain (loss)

      8,035,596       (17,188 )      (2,967,860 )      (170,337 )      14,307,773  

Capital gain distribution from mutual funds

      153,231,706       171,061       44,712,405       323,054       85,041,231  

Change in unrealized appreciation (depreciation) of investments

      (449,934 )      80,760       24,673,696       1,133,513       127,071,695  

Increase (decrease) in net assets from operations

      179,290,867       240,771       63,870,149       1,316,351       226,820,035  

From contract transactions:

           

Payments received from contract owners

      70,193,108       57,894       8,505,230       —       67,775,170  

Payments for contract benefits or terminations

      (107,183,381 )      (33,958 )      (31,949,319 )      (2,628,005 )      (47,753,014 ) 

Transfers between sub-accounts (including fixed account), net

      9,262,774       119,000       (11,590,833 )      4,064,867       (50,668,861 ) 

Contract maintenance charges

      (24,416,721 )      (7,624 )      (4,127,508 )      (17,753 )      (9,610,539 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       (117 )      —       (4,476 ) 

Increase (decrease) in net assets from contract transactions

      (52,144,220 )      135,312       (39,162,547 )      1,419,109       (40,261,720 ) 

Increase (decrease) in net assets

      127,146,647       376,083       24,707,602       2,735,460       186,558,315  

Net assets at beginning of period

      1,469,885,240       1,022,038       324,538,833       1,668,026       634,852,756  

Net assets at end of period

    $  1,597,031,887     $ 1,398,121     $ 349,246,435     $ 4,403,486     $ 821,411,071  

Beginning units

      67,864,280       76,394       12,090,807       105,996       18,561,258  

Units issued

      4,995,369       15,755       690,833       232,763       2,361,775  

Units redeemed

      (7,323,305 )      (6,392 )      (2,008,370 )      (135,389 )      (3,316,284 ) 

Ending units

      65,536,344       85,757       10,773,270       203,370       17,606,749  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 27,716,801     $ —     $ —     $ 14,155     $ 3,461,189  

Mortality and expense risk and administrative charges

      (19,686,085 )      (6,757 )      (5,106,428 )      (9,969 )      (8,932,064 ) 

Net investment income (loss)

      8,030,716       (6,757 )      (5,106,428 )      4,186       (5,470,875 ) 

Net realized gain (loss)

      15,662,943       (85,681 )      (4,198,801 )      (14,481 )      6,405,361  

Capital gain distribution from mutual funds

      52,040,633       7,838       2,145,638       254,733       91,406,326  

Change in unrealized appreciation (depreciation) of investments

      (329,725,697 )      (321,765 )      (107,890,536 )      (955,502 )      (341,511,726 ) 

Increase (decrease) in net assets from operations

      (253,991,405 )      (406,365 )      (115,050,127 )      (711,064 )      (249,170,914 ) 

From contract transactions:

           

Payments received from contract owners

      147,806,778       116,073       16,102,724       212,314       113,931,239  

Payments for contract benefits or terminations

      (99,439,360 )      (70,353 )      (31,178,947 )      (85,936 )      (43,399,757 ) 

Transfers between sub-accounts (including fixed account), net

      (11,101,224 )      (1,075,239 )      23,061,303       (35,830 )      54,388,623  

Contract maintenance charges

      (25,254,548 )      (6,817 )      (4,339,290 )      (15,690 )      (8,387,707 ) 

Adjustments to net assets allocated to contracts in payout period

      11,796       —       (4,546 )      —       11,761  

Increase (decrease) in net assets from contract transactions

      12,023,442       (1,036,336 )      3,641,244       74,858       116,544,159  

Increase (decrease) in net assets

      (241,967,963 )      (1,442,701 )      (111,408,883 )      (636,206 )      (132,626,755 ) 

Net assets at beginning of period

      1,711,853,203       2,464,739       435,947,716       2,304,232       767,479,511  

Net assets at end of period

    $  1,469,885,240     $ 1,022,038     $ 324,538,833     $ 1,668,026     $ 634,852,756  

Beginning units

      67,513,730       137,939       12,033,355       102,121       15,528,778  

Units issued

      8,529,499       18,832       2,102,259       28,824       5,314,994  

Units redeemed

      (8,178,949 )      (80,377 )      (2,044,807 )      (24,949 )      (2,282,514 ) 

Ending units

      67,864,280       76,394       12,090,807       105,996       18,561,258  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

33

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
American Funds
Growth-Income
Portfolio Class 1		   SAST SA
American Funds
Growth-Income
Portfolio Class 3		   SAST SA
American Funds
VCP Managed
Allocation
Portfolio Class 1		   SAST SA
American Funds
VCP Managed
Allocation
Portfolio Class 3		   SAST SA
BlackRock Multi-
Factor 70/30
Portfolio Class 1

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 53,626     $ 8,073,147     $ 13,690     $ 28,274,364     $ 4,304  

Mortality and expense risk and administrative charges

      (10,658 )      (4,907,802 )      (3,475 )      (21,252,175 )      (863 ) 

Net investment income (loss)

      42,968       3,165,345       10,215       7,022,189       3,441  

Net realized gain (loss)

      9,403       264,062       (60,610 )      27,899,745       121  

Capital gain distribution from mutual funds

      180,012       29,967,756       22,519       53,463,784       —  

Change in unrealized appreciation (depreciation) of investments

      225,731       45,050,282       131,894       120,291,619       18,777  

Increase (decrease) in net assets from operations

      458,114       78,447,445       104,018       208,677,337       22,339  

From contract transactions:

           

Payments received from contract owners

      252,525       29,819,492       120,147       34,714,767       146,000  

Payments for contract benefits or terminations

      (36,504 )      (34,092,964 )      (10,645 )      (159,541,009 )      (2,666 ) 

Transfers between sub-accounts (including fixed account), net

      205,901       (5,014,715 )      (342,653 )      (160,192 )      2,668  

Contract maintenance charges

      (13,583 )      (3,892,161 )      (11,589 )      (28,285,110 )      (2,338 ) 

Adjustments to net assets allocated to contracts in payout period

      —       (34,119 )      —       226       —  

Increase (decrease) in net assets from contract transactions

      408,339       (13,214,467 )      (244,740 )      (153,271,318 )      143,664  

Increase (decrease) in net assets

      866,453       65,232,978       (140,722 )      55,406,019       166,003  

Net assets at beginning of period

      1,540,308       327,509,080       961,542       1,568,854,955       46,222  

Net assets at end of period

    $ 2,406,761     $ 392,742,058     $ 820,820     $ 1,624,260,974     $ 212,225  

Beginning units

      111,784       12,288,102       74,997       102,519,354       4,565  

Units issued

      35,902       1,559,327       8,801       5,958,482       14,634  

Units redeemed

      (8,337 )      (2,006,364 )      (28,380 )      (15,417,754 )      (581 ) 

Ending units

      139,349       11,841,065       55,418       93,060,082       18,618  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 19,995     $ 3,031,609     $ 12,897     $ 16,440,647     $ 877  

Mortality and expense risk and administrative charges

      (9,631 )      (4,713,660 )      (5,022 )      (22,843,864 )      (65 ) 

Net investment income (loss)

      10,364       (1,682,051 )      7,875       (6,403,217 )      812  

Net realized gain (loss)

      (8,379 )      (1,008,959 )      1,764       24,868,085       (104 ) 

Capital gain distribution from mutual funds

      53,291       10,385,353       35,121       57,945,337       497  

Change in unrealized appreciation (depreciation) of investments

      (390,466 )      (76,940,539 )      (222,633 )      (440,646,051 )      (2,758 ) 

Increase (decrease) in net assets from operations

      (335,190 )      (69,246,196 )      (177,873 )      (364,235,846 )      (1,553 ) 

From contract transactions:

           

Payments received from contract owners

      148,818       41,796,500       214,013       58,514,956       49,500  

Payments for contract benefits or terminations

      (97,464 )      (29,945,711 )      (3,350 )      (125,809,478 )      (890 ) 

Transfers between sub-accounts (including fixed account), net

      (145,226 )      4,026,751       111       28,988,046       (633 ) 

Contract maintenance charges

      (12,248 )      (3,569,864 )      (18,398 )      (30,504,542 )      (202 ) 

Adjustments to net assets allocated to contracts in payout period

      —       5,113       —       58       —  

Increase (decrease) in net assets from contract transactions

      (106,120 )      12,312,789       192,376       (68,810,960 )      47,775  

Increase (decrease) in net assets

      (441,310 )      (56,933,407 )      14,503       (433,046,806 )      46,222  

Net assets at beginning of period

      1,981,618       384,442,487       947,039       2,001,901,761       —  

Net assets at end of period

    $ 1,540,308     $ 327,509,080     $ 961,542     $ 1,568,854,955     $ 46,222  

Beginning units

      119,461       11,885,245       61,003       106,954,856       —  

Units issued

      20,117       2,385,978       16,208       8,919,502       4,746  

Units redeemed

      (27,794 )      (1,983,121 )      (2,214 )      (13,355,004 )      (181 ) 

Ending units

      111,784       12,288,102       74,997       102,519,354       4,565  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

34

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
     

SAST SA

BlackRock Multi-

Factor 70/30

Portfolio Class 3

  

SAST SA

BlackRock VCP

Global Multi

Asset Portfolio

Class 1

  

SAST SA

BlackRock VCP

Global Multi

Asset Portfolio

Class 3

  

SAST SA DFA

Ultra Short Bond

Portfolio Class 1

  

SAST SA DFA

Ultra Short Bond

Portfolio Class 2

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 865,986     $ 3,744     $ 4,009,103     $ 233,551     $ 69,745  

Mortality and expense risk and administrative charges

      (535,712 )      (2,052 )      (7,644,837 )      (316,397 )      (113,172 ) 

Net investment income (loss)

      330,274       1,692       (3,635,734 )      (82,846 )      (43,427 ) 

Net realized gain (loss)

      (430,029 )      (104,845 )      (12,497,079 )      52,471       (25,617 ) 

Capital gain distribution from mutual funds

      —       —       —       —       —  

Change in unrealized appreciation (depreciation) of investments

      4,850,372       152,869       74,457,071       671,669       271,761  

Increase (decrease) in net assets from operations

      4,750,617       49,716       58,324,258       641,294       202,717  

From contract transactions:

           

Payments received from contract owners

      5,878,322       —       12,726,232       801,181       330,645  

Payments for contract benefits or terminations

      (1,466,170 )      (9,534 )      (58,019,970 )      (2,253,290 )      (1,952,478 ) 

Transfers between sub-accounts (including fixed account), net

      (55,255 )      (320,531 )      8,099,962       (1,581,317 )      494,098  

Contract maintenance charges

      (715,993 )      (7,180 )      (10,275,004 )      (26,265 )      (12,376 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       —       (3,832 )      (8,942 ) 

Increase (decrease) in net assets from contract transactions

      3,640,904       (337,245 )      (47,468,780 )      (3,063,523 )      (1,149,053 ) 

Increase (decrease) in net assets

      8,391,521       (287,529 )      10,855,478       (2,422,229 )      (946,336 ) 

Net assets at beginning of period

      38,752,738       692,089       578,266,266       21,855,545       7,640,534  

Net assets at end of period

    $ 47,144,259     $ 404,560     $ 589,121,744     $ 19,433,316     $ 6,694,198  

Beginning units

      3,922,646       62,712       52,753,463       1,960,657       705,017  

Units issued

      757,144       974       3,173,028       732,258       132,410  

Units redeemed

      (406,034 )      (30,925 )      (7,328,085 )      (998,856 )      (237,165 ) 

Ending units

      4,273,756       32,761       48,598,406       1,694,059       600,262  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 655,189     $ —     $ —     $ —     $ —  

Mortality and expense risk and administrative charges

      (412,610 )      (3,976 )      (8,303,145 )      (353,220 )      (131,210 ) 

Net investment income (loss)

      242,579       (3,976 )      (8,303,145 )      (353,220 )      (131,210 ) 

Net realized gain (loss)

      (197,272 )      (6,885 )      (8,523,082 )      (263,410 )      (90,304 ) 

Capital gain distribution from mutual funds

      400,565       50       41,720       —       —  

Change in unrealized appreciation (depreciation) of investments

      (5,828,192 )      (141,311 )      (121,134,711 )      (100,436 )      (61,832 ) 

Increase (decrease) in net assets from operations

      (5,382,320 )      (152,122 )      (137,919,218 )      (717,066 )      (283,346 ) 

From contract transactions:

           

Payments received from contract owners

      15,832,487       28,500       22,923,227       1,740,844       820,963  

Payments for contract benefits or terminations

      (973,697 )      (8,866 )      (42,692,938 )      (4,053,878 )      (2,258,692 ) 

Transfers between sub-accounts (including fixed account), net

      1,730,890       9,638       2,412,374       1,428,076       373,773  

Contract maintenance charges

      (532,713 )      (15,172 )      (11,184,774 )      (23,828 )      (14,094 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       2,705       (42,289 )      11,803  

Increase (decrease) in net assets from contract transactions

      16,056,967       14,100       (28,539,406 )      (951,075 )      (1,066,247 ) 

Increase (decrease) in net assets

      10,674,647       (138,022 )      (166,458,624 )      (1,668,141 )      (1,349,593 ) 

Net assets at beginning of period

      28,078,091       830,111       744,724,890       23,523,686       8,990,127  

Net assets at end of period

    $ 38,752,738     $ 692,089     $ 578,266,266     $ 21,855,545     $ 7,640,534  

Beginning units

      2,357,522       61,732       55,193,356       2,037,617       803,813  

Units issued

      1,886,809       3,449       3,750,454       963,719       197,748  

Units redeemed

      (321,685 )      (2,469 )      (6,190,347 )      (1,040,679 )      (296,544 ) 

Ending units

      3,922,646       62,712       52,753,463       1,960,657       705,017  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

35

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA DFA
Ultra Short Bond
Portfolio Class 3		   SAST SA
Emerging
Markets Equity
Index Portfolio
Class 1		   SAST SA
Emerging
Markets Equity
Index Portfolio
Class 3		   SAST SA
Federated
Hermes
Corporate Bond
Portfolio Class 1		  

SAST SA
Federated
Hermes

Corporate Bond

Portfolio Class 2

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 1,634,710     $ 4,463     $ 361,464     $ 1,228,800     $ 353,089  

Mortality and expense risk and administrative charges

      (2,495,487 )      (702 )      (187,321 )      (535,912 )      (163,110 ) 

Net investment income (loss)

      (860,777 )      3,761       174,143       692,888       189,979  

Net realized gain (loss)

      (863,359 )      (3,228 )      (448,726 )      (1,065,896 )      (352,883 ) 

Change in unrealized appreciation (depreciation) of investments

      6,914,747       10,554       1,292,313       2,549,521       790,750  

Increase (decrease) in net assets from operations

      5,190,611       11,087       1,017,730       2,176,513       627,846  

From contract transactions:

           

Payments received from contract owners

      8,929,420       —       1,669,305       80,501       196,062  

Payments for contract benefits or terminations

      (22,777,770 )      (566 )      (562,544 )      (4,647,945 )      (1,630,259 ) 

Transfers between sub-accounts (including fixed account), net

      3,120,096       78,801       875,028       (101,411 )      216,047  

Contract maintenance charges

      (2,695,483 )      (2,370 )      (214,523 )      (17,862 )      (14,503 ) 

Adjustments to net assets allocated to contracts in payout period

      (4,879 )      —       —       (129 )      4,949  

Increase (decrease) in net assets from contract transactions

      (13,428,616 )      75,865       1,767,266       (4,686,846 )      (1,227,704 ) 

Increase (decrease) in net assets

      (8,238,005 )      86,952       2,784,996       (2,510,333 )      (599,858 ) 

Net assets at beginning of period

      183,831,101       100,163       13,125,286       37,172,457       11,100,644  

Net assets at end of period

    $ 175,593,096     $ 187,115     $ 15,910,282     $ 34,662,124     $ 10,500,786  

Beginning units

      21,058,288       11,135       1,529,077       1,268,269       379,420  

Units issued

      4,832,255       9,266       447,329       47,917       17,980  

Units redeemed

      (6,337,530 )      (1,263 )      (250,188 )      (208,525 )      (59,986 ) 

Ending units

      19,553,013       19,138       1,726,218       1,107,661       337,414  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ —     $ 1,990     $ 234,355     $ 1,509,520     $ 440,307  

Mortality and expense risk and administrative charges

      (2,491,887 )      (544 )      (148,650 )      (616,528 )      (194,898 ) 

Net investment income (loss)

      (2,491,887 )      1,446       85,705       892,992       245,409  

Net realized gain (loss)

      (1,942,416 )      (4,275 )      (135,164 )      (767,553 )      (259,239 ) 

Capital gain distribution from mutual funds

      —       —       —       139,554       42,903  

Change in unrealized appreciation (depreciation) of investments

      (1,305,399 )      (23,332 )      (2,669,794 )      (7,602,339 )      (2,312,141 ) 

Increase (decrease) in net assets from operations

      (5,739,702 )      (26,161 )      (2,719,253 )      (7,337,346 )      (2,283,068 ) 

From contract transactions:

           

Payments received from contract owners

      19,275,083       —       3,895,672       244,663       237,768  

Payments for contract benefits or terminations

      (20,711,606 )      (34,444 )      (255,816 )      (4,789,771 )      (1,544,884 ) 

Transfers between sub-accounts (including fixed account), net

      20,929,139       59,320       1,207,172       (219,863 )      (516,337 ) 

Contract maintenance charges

      (2,622,230 )      (1,606 )      (170,074 )      (18,025 )      (16,308 ) 

Adjustments to net assets allocated to contracts in payout period

      (83 )      —       —       11,004       (8,771 ) 

Increase (decrease) in net assets from contract transactions

      16,870,303       23,270       4,676,954       (4,771,992 )      (1,848,532 ) 

Increase (decrease) in net assets

      11,130,601       (2,891 )      1,957,701       (12,109,338 )      (4,131,600 ) 

Net assets at beginning of period

      172,700,500       103,054       11,167,585       49,281,795       15,232,244  

Net assets at end of period

    $ 183,831,101     $ 100,163     $ 13,125,286     $ 37,172,457     $ 11,100,644  

Beginning units

      19,000,018       9,080       1,020,696       1,413,125       438,755  

Units issued

      9,608,349       6,661       719,343       93,255       13,180  

Units redeemed

      (7,550,079 )      (4,606 )      (210,962 )      (238,111 )      (72,515 ) 

Ending units

      21,058,288       11,135       1,529,077       1,268,269       379,420  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

36

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

     

SAST SA

Federated

Hermes

Corporate Bond

Portfolio Class 3

   SAST SA
Fidelity
Institutional
AM®
International
Growth Portfolio
Class 1		   SAST SA
Fidelity
Institutional
AM®
International
Growth Portfolio
Class 3		   SAST SA
Fidelity
Institutional
AM® Real
Estate Portfolio
Class 1		   SAST SA
Fidelity
Institutional
AM® Real
Estate Portfolio
Class 2

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 24,027,337     $ 1,223     $ 20,622     $ 297,068     $ 60,673  

Mortality and expense risk and administrative charges

      (9,663,066 )      (1,505 )      (134,396 )      (210,012 )      (48,006 ) 

Net investment income (loss)

      14,364,271       (282 )      (113,774 )      87,056       12,667  

Net realized gain (loss)

      (12,582,178 )      (6,580 )      (367,362 )      (495,450 )      (152,369 ) 

Capital gain distribution from mutual funds

      —       —       —       767,368       170,430  

Change in unrealized appreciation (depreciation) of investments

      39,958,843       80,271       2,821,489       1,244,201       309,880  

Increase (decrease) in net assets from operations

      41,740,936       73,409       2,340,353       1,603,175       340,608  

From contract transactions:

           

Payments received from contract owners

      50,189,888       —       1,072,874       60,818       1,906  

Payments for contract benefits or terminations

      (60,104,332 )      (14,736 )      (667,842 )      (1,281,528 )      (274,140 ) 

Transfers between sub-accounts (including fixed account), net

      73,123,401       104,402       1,533,657       (318,193 )      (84,187 ) 

Contract maintenance charges

      (10,431,773 )      (605 )      (154,654 )      (5,441 )      (5,366 ) 

Adjustments to net assets allocated to contracts in payout period

      4,845       —       —       (76 )      —  

Increase (decrease) in net assets from contract transactions

      52,782,029       89,061       1,784,035       (1,544,420 )      (361,787 ) 

Increase (decrease) in net assets

      94,522,965       162,470       4,124,388       58,755       (21,179 ) 

Net assets at beginning of period

      656,710,081       217,893       8,196,967       13,973,782       3,094,012  

Net assets at end of period

    $ 751,233,046     $ 380,363     $ 12,321,355     $ 14,032,537     $ 3,072,833  

Beginning units

      34,764,328       19,680       766,046       342,252       78,415  

Units issued

      7,807,468       9,903       326,689       4,738       2,420  

Units redeemed

      (4,683,929 )      (2,476 )      (174,753 )      (40,450 )      (11,338 ) 

Ending units

      37,887,867       27,107       917,982       306,540       69,497  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 24,280,312     $ 35     $ —     $ 151,346     $ 26,268  

Mortality and expense risk and administrative charges

      (9,856,686 )      (2,774 )      (96,181 )      (252,284 )      (57,439 ) 

Net investment income (loss)

      14,423,626       (2,739 )      (96,181 )      (100,938 )      (31,171 ) 

Net realized gain (loss)

      (14,069,290 )      (111,774 )      (117,811 )      (131,341 )      (27,408 ) 

Capital gain distribution from mutual funds

      2,419,701       46,317       853,132       1,287,886       280,266  

Change in unrealized appreciation (depreciation) of investments

      (129,711,091 )      (110,527 )      (3,084,333 )      (6,774,665 )      (1,479,682 ) 

Increase (decrease) in net assets from operations

      (126,937,054 )      (178,723 )      (2,445,193 )      (5,719,058 )      (1,257,995 ) 

From contract transactions:

           

Payments received from contract owners

      77,155,992       39,617       1,574,951       119,932       1,758  

Payments for contract benefits or terminations

      (54,361,799 )      (73,729 )      (342,732 )      (1,329,146 )      (349,195 ) 

Transfers between sub-accounts (including fixed account), net

      (38,991,541 )      (263,340 )      1,054,115       162,784       46,069  

Contract maintenance charges

      (10,399,338 )      (798 )      (118,881 )      (5,830 )      (6,308 ) 

Adjustments to net assets allocated to contracts in payout period

      8,109       —       —       (1,898 )      (302 ) 

Increase (decrease) in net assets from contract transactions

      (26,588,577 )      (298,250 )      2,167,453       (1,054,158 )      (307,978 ) 

Increase (decrease) in net assets

      (153,525,631 )      (476,973 )      (277,740 )      (6,773,216 )      (1,565,973 ) 

Net assets at beginning of period

      810,235,712       694,866       8,474,707       20,746,998       4,659,985  

Net assets at end of period

    $ 656,710,081     $ 217,893     $ 8,196,967     $ 13,973,782     $ 3,094,012  

Beginning units

      35,807,847       45,820       572,953       363,900       84,750  

Units issued

      6,894,434       5,238       294,843       18,409       3,833  

Units redeemed

      (7,937,953 )      (31,378 )      (101,750 )      (40,057 )      (10,168 ) 

Ending units

      34,764,328       19,680       766,046       342,252       78,415  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

37

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
Fidelity
Institutional
AM® Real
Estate Portfolio
Class 3		   SAST SA Fixed
Income Index
Portfolio Class 1		   SAST SA Fixed
Income Index
Portfolio Class 3		   SAST SA
Fixed Income
Intermediate
Index Portfolio
Class 1		  

 SAST SA Fixed 

Income
Intermediate
Index Portfolio
Class 3

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 2,428,845     $ 1,136     $ 1,480,181     $ 558     $ 538,924  

Mortality and expense risk and administrative charges

      (1,848,556 )      (236 )      (848,394 )      (80 )      (434,729 ) 

Net investment income (loss)

      580,289       900       631,787       478       104,195  

Net realized gain (loss)

      (2,136,451 )      (97 )      (1,822,895 )      (3 )      (711,972 ) 

Capital gain distribution from mutual funds

      7,135,003       —       —       —       —  

Change in unrealized appreciation (depreciation) of investments

      9,141,795       1,660       3,880,473       899       1,732,220  

Increase (decrease) in net assets from operations

      14,720,636       2,463       2,689,365       1,374       1,124,443  

From contract transactions:

           

Payments received from contract owners

      1,881,226       —       6,946,773       —       3,971,623  

Payments for contract benefits or terminations

      (13,444,256 )      (187 )      (4,092,807 )      (190 )      (2,423,238 ) 

Transfers between sub-accounts (including fixed account), net

      (269,918 )      3,708       7,451,018       18,835       4,132,245  

Contract maintenance charges

      (1,459,894 )      (471 )      (1,102,569 )      —       (568,240 ) 

Adjustments to net assets allocated to contracts in payout period

      (151 )      —       —       —       —  

Increase (decrease) in net assets from contract transactions

      (13,292,993 )      3,050       9,202,415       18,645       5,112,390  

Increase (decrease) in net assets

      1,427,643       5,513       11,891,780       20,019       6,236,833  

Net assets at beginning of period

      124,534,724       45,824       60,802,458       12,734       30,166,808  

Net assets at end of period

    $ 125,962,367     $ 51,337     $ 72,694,238     $ 32,753     $ 36,403,641  

Beginning units

      6,355,594       4,650       6,511,499       1,267       3,169,435  

Units issued

      574,620       369       2,072,459       1,859       1,399,329  

Units redeemed

      (1,183,288 )      (71 )      (1,110,853 )      (19 )      (873,350 ) 

Ending units

      5,746,926       4,948       7,473,105       3,107       3,695,414  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 928,133     $ 923     $ 1,066,148     $ 184     $ 345,073  

Mortality and expense risk and administrative charges

      (2,038,330 )      (128 )      (767,855 )      (32 )      (374,473 ) 

Net investment income (loss)

      (1,110,197 )      795       298,293       152       (29,400 ) 

Net realized gain (loss)

      810,045       (229 )      (1,464,768 )      (4 )      (407,987 ) 

Capital gain distribution from mutual funds

      11,371,637       128       168,513       4       8,060  

Change in unrealized appreciation (depreciation) of investments

      (56,950,014 )      (3,136 )      (8,409,876 )      (355 )      (2,261,181 ) 

Increase (decrease) in net assets from operations

      (45,878,529 )      (2,442 )      (9,407,838 )      (203 )      (2,690,508 ) 

From contract transactions:

           

Payments received from contract owners

      7,261,321       19,955       13,666,127       13,125       4,484,757  

Payments for contract benefits or terminations

      (13,384,569 )      (95 )      (4,428,902 )      (96 )      (1,971,908 ) 

Transfers between sub-accounts (including fixed account), net

      12,980,809       27,994       (3,191,508 )      (92 )      (459,929 ) 

Contract maintenance charges

      (1,530,215 )      (338 )      (1,020,858 )      —       (506,631 ) 

Adjustments to net assets allocated to contracts in payout period

      5,593       —       (16 )      —       (16 ) 

Increase (decrease) in net assets from contract transactions

      5,332,939       47,516       5,024,843       12,937       1,546,273  

Increase (decrease) in net assets

      (40,545,590 )      45,074       (4,382,995 )      12,734       (1,144,235 ) 

Net assets at beginning of period

      165,080,314       750       65,185,453       —       31,311,043  

Net assets at end of period

    $ 124,534,724     $ 45,824     $ 60,802,458     $ 12,734     $ 30,166,808  

Beginning units

      5,911,434       67       5,991,408       —       3,006,389  

Units issued

      1,408,666       4,834       2,243,832       1,285       943,187  

Units redeemed

      (964,506 )      (251 )      (1,723,741 )      (18 )      (780,141 ) 

Ending units

      6,355,594       4,650       6,511,499       1,267       3,169,435  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

38

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
Franklin BW
U.S. Large Cap
Value Portfolio
Class 1		     SAST SA
Franklin BW
U.S. Large Cap
Value Portfolio
Class 2		     SAST SA
Franklin BW
U.S. Large Cap
Value Portfolio
Class 3		     SAST SA
Franklin Small
Company Value
Portfolio Class 1		     SAST SA
Franklin Small
Company Value
Portfolio Class 3		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 6,319,256     $ 840,608     $ 6,632,358     $ 639     $ 324,734  

Mortality and expense risk and administrative charges

      (3,992,595 )      (578,788 )      (4,605,936 )      (576 )      (1,925,399 ) 

Net investment income (loss)

      2,326,661       261,820       2,026,422       63       (1,600,665 ) 

Net realized gain (loss)

      1,189,594       (100,122 )      (2,876,569 )      (2,451 )      (4,607,911 ) 

Capital gain distribution from mutual funds

      25,285,354       3,610,340       29,942,910       9,121       9,615,201  

Change in unrealized appreciation (depreciation) of investments

      (14,437,925 )      (1,796,968 )      (12,720,871 )      7,929       10,431,385  

Increase (decrease) in net assets from operations

      14,363,684       1,975,070       16,371,892       14,662       13,838,010  

From contract transactions:

           

Payments received from contract owners

      1,529,398       225,280       6,266,499       —       4,095,889  

Payments for contract benefits or terminations

      (26,007,609 )      (3,720,601 )      (33,096,133 )      (1,516 )      (12,568,444 ) 

Transfers between sub-accounts (including fixed account), net

      (495,364 )      169,204       12,420,765       33,873       3,502,881  

Contract maintenance charges

      (70,454 )      (62,932 )      (2,537,808 )      (1,572 )      (1,609,971 ) 

Adjustments to net assets allocated to contracts in payout period

      (18,187 )      10,076       (1,584 )      —       318  

Increase (decrease) in net assets from contract transactions

      (25,062,216 )      (3,378,973 )      (16,948,261 )      30,785       (6,579,327 ) 

Increase (decrease) in net assets

      (10,698,532 )      (1,403,903 )      (576,369 )      45,447       7,258,683  

Net assets at beginning of period

      275,770,611       39,222,189       316,980,351       93,065       129,227,938  

Net assets at end of period

    $ 265,072,079     $ 37,818,286     $ 316,403,982     $ 138,512     $ 136,486,621  

Beginning units

      2,969,565       435,560       7,748,271       7,207       5,807,331  

Units issued

      92,958       14,978       926,075       2,764       563,773  

Units redeemed

      (329,058 )      (53,128 )      (1,293,144 )      (427 )      (861,331 ) 

Ending units

      2,733,465       397,410       7,381,202       9,544       5,509,773  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 4,915,481     $ 639,329     $ 4,977,618     $ 652     $ 580,278  

Mortality and expense risk and administrative charges

      (4,395,693 )      (649,273 )      (5,228,736 )      (339 )      (2,116,673 ) 

Net investment income (loss)

      519,788       (9,944 )      (251,118 )      313       (1,536,395 ) 

Net realized gain (loss)

      (653,504 )      426,512       10,891,229       (1,795 )      (4,208,409 ) 

Capital gain distribution from mutual funds

      46,813,022       6,739,379       56,625,171       19,782       29,701,105  

Change in unrealized appreciation (depreciation) of investments

      (56,200,375 )      (8,643,332 )      (79,537,263 )      (22,682 )      (43,460,164 ) 

Increase (decrease) in net assets from operations

      (9,521,069 )      (1,487,385 )      (12,271,981 )      (4,382 )      (19,503,863 ) 

From contract transactions:

           

Payments received from contract owners

      1,023,358       483,615       11,709,018       19,226       7,308,121  

Payments for contract benefits or terminations

      (29,182,249 )      (4,062,454 )      (33,897,735 )      (935 )      (13,135,513 ) 

Transfers between sub-accounts (including fixed account), net

      (7,710,288 )      (1,627,255 )      (32,365,047 )      34,001       (6,865,960 ) 

Contract maintenance charges

      (77,049 )      (68,310 )      (2,837,062 )      (863 )      (1,727,962 ) 

Adjustments to net assets allocated to contracts in payout period

      58,446       12,393       1,914       —       (309 ) 

Increase (decrease) in net assets from contract transactions

      (35,887,782 )      (5,262,011 )      (57,388,912 )      51,429       (14,421,623 ) 

Increase (decrease) in net assets

      (45,408,851 )      (6,749,396 )      (69,660,893 )      47,047       (33,925,486 ) 

Net assets at beginning of period

      321,179,462       45,971,585       386,641,244       46,018       163,153,424  

Net assets at end of period

    $ 275,770,611     $ 39,222,189     $ 316,980,351     $ 93,065     $ 129,227,938  

Beginning units

      3,356,988       495,266       8,973,492       3,178       6,482,397  

Units issued

      37,673       11,840       901,252       4,614       672,349  

Units redeemed

      (425,096 )      (71,546 )      (2,126,473 )      (585 )      (1,347,415 ) 

Ending units

      2,969,565       435,560       7,748,271       7,207       5,807,331  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

39

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
Franklin
Systematic U.S.
Large Cap Core
Portfolio Class 1		     SAST SA
Franklin
Systematic U.S.
Large Cap Core
Portfolio Class 3		     SAST SA
Franklin
Systematic U.S.
Large Cap Value
Portfolio Class 1		     SAST SA
Franklin
Systematic U.S.
Large Cap Value
Portfolio Class 2		     SAST SA
Franklin
Systematic U.S.
Large Cap Value
Portfolio Class 3		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 2,656     $ 146,020     $ 332,994     $ 73,523     $ 2,335,538  

Mortality and expense risk and administrative charges

      (750 )      (121,165 )      (307,352 )      (74,670 )      (2,124,765 ) 

Net investment income (loss)

      1,906       24,855       25,642       (1,147 )      210,773  

Net realized gain (loss)

      (526 )      (18,585 )      (1,225,020 )      (256,367 )      (7,451,396 ) 

Capital gain distribution from mutual funds

      16,903       1,028,501       —       —       —  

Change in unrealized appreciation (depreciation) of investments

      7,566       651,472       2,504,806       545,465       17,079,228  

Increase (decrease) in net assets from operations

      25,849       1,686,243       1,305,428       287,951       9,838,605  

From contract transactions:

           

Payments received from contract owners

      —       2,410,032       37,723       722       7,995,469  

Payments for contract benefits or terminations

      (474 )      (482,387 )      (2,603,893 )      (730,807 )      (13,987,898 ) 

Transfers between sub-accounts (including fixed account), net

      123,276       2,117,802       (489,448 )      94,957       6,798,999  

Contract maintenance charges

      (1,373 )      (146,454 )      (16,483 )      (7,779 )      (1,905,059 ) 

Increase (decrease) in net assets from contract transactions

      121,429       3,898,993       (3,072,101 )      (642,907 )      (1,098,489 ) 

Increase (decrease) in net assets

      147,278       5,585,236       (1,766,673 )      (354,956 )      8,740,116  

Net assets at beginning of period

      51,235       6,789,885       21,476,642       4,998,979       152,675,006  

Net assets at end of period

    $ 198,513     $ 12,375,121     $ 19,709,969     $ 4,644,023     $ 161,415,122  

Beginning units

      3,993       547,025       505,498       118,192       4,133,679  

Units issued

      9,071       382,495       49,187       2,450       629,724  

Units redeemed

      (240 )      (96,572 )      (124,463 )      (17,619 )      (673,538 ) 

Ending units

      12,824       832,948       430,222       103,023       4,089,865  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 883     $ 108,162     $ 424,757     $ 89,113     $ 2,655,403  

Mortality and expense risk and administrative charges

      (193 )      (75,946 )      (356,518 )      (81,184 )      (2,221,605 ) 

Net investment income (loss)

      690       32,216       68,239       7,929       433,798  

Net realized gain (loss)

      (197 )      266,287       48,689       (10,585 )      (2,056,303 ) 

Capital gain distribution from mutual funds

      5,688       756,958       5,142,035       1,184,035       37,468,483  

Change in unrealized appreciation (depreciation) of investments

      (10,437 )      (1,979,158 )      (7,784,218 )      (1,725,411 )      (52,459,068 ) 

Increase (decrease) in net assets from operations

      (4,256 )      (923,697 )      (2,525,255 )      (544,032 )      (16,613,090 ) 

From contract transactions:

           

Payments received from contract owners

      —       1,798,165       260,017       46,787       12,324,980  

Payments for contract benefits or terminations

      (550 )      (146,763 )      (2,533,755 )      (392,957 )      (10,828,925 ) 

Transfers between sub-accounts (including fixed account), net

      36,522       869,483       (1,221,115 )      (56,268 )      (13,576,275 ) 

Contract maintenance charges

      (510 )      (93,756 )      (16,941 )      (7,985 )      (1,943,990 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       1,567       (194 )      (200 ) 

Increase (decrease) in net assets from contract transactions

      35,462       2,427,129       (3,510,227 )      (410,617 )      (14,024,410 ) 

Increase (decrease) in net assets

      31,206       1,503,432       (6,035,482 )      (954,649 )      (30,637,500 ) 

Net assets at beginning of period

      20,029       5,286,453       27,512,124       5,953,628       183,312,506  

Net assets at end of period

    $ 51,235     $ 6,789,885     $ 21,476,642     $ 4,998,979     $ 152,675,006  

Beginning units

      1,347       364,136       579,681       127,778       4,506,856  

Units issued

      2,824       303,401       27,057       3,158       548,499  

Units redeemed

      (178 )      (120,512 )      (101,240 )      (12,744 )      (921,676 ) 

Ending units

      3,993       547,025       505,498       118,192       4,133,679  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

40

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
Franklin Tactical
Opportunities
Portfolio Class 1		     SAST SA
Franklin Tactical
Opportunities
Portfolio Class 3		     SAST SA Global
Index Allocation
60/40 Portfolio
Class 1		     SAST SA Global
Index Allocation
60/40 Portfolio
Class 3		     SAST SA Global
Index Allocation
75/25 Portfolio
Class 1		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 2,389     $ 1,045,099     $ 847     $ 936,106     $ 6,096  

Mortality and expense risk and administrative charges

      (567 )      (915,686 )      (222 )      (760,754 )      (1,505 ) 

Net investment income (loss)

      1,822       129,413       625       175,352       4,591  

Net realized gain (loss)

      78       326,091       (735 )      787,399       1,143  

Capital gain distribution from mutual funds

      176       89,889       1,477       1,880,200       12,533  

Change in unrealized appreciation (depreciation) of investments

      14,248       8,880,290       5,555       4,107,905       19,927  

Increase (decrease) in net assets from operations

      16,324       9,425,683       6,922       6,950,856       38,194  

From contract transactions:

           

Payments received from contract owners

      —       7,125,931       —       6,148,690       240,000  

Payments for contract benefits or terminations

      (510 )      (3,736,155 )      —       (4,637,798 )      —  

Transfers between sub-accounts (including fixed account), net

      71,059       880,606       (40,892 )      1,602,831       2,945  

Contract maintenance charges

      (1,842 )      (1,202,532 )      (716 )      (997,504 )      (3,812 ) 

Increase (decrease) in net assets from contract transactions

      68,707       3,067,850       (41,608 )      2,116,219       239,133  

Increase (decrease) in net assets

      85,031       12,493,533       (34,686 )      9,067,075       277,327  

Net assets at beginning of period

      68,275       64,638,935       85,725       55,877,444       100,383  

Net assets at end of period

    $ 153,306     $ 77,132,468     $ 51,039     $ 64,944,519     $ 377,710  

Beginning units

      5,644       5,634,135       7,429       5,102,482       8,595  

Units issued

      5,505       827,275       75       829,470       19,919  

Units redeemed

      (191 )      (567,784 )      (3,602 )      (641,835 )      (452 ) 

Ending units

      10,958       5,893,626       3,902       5,290,117       28,062  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 900     $ 693,867     $ 257     $ 25,725     $ 367  

Mortality and expense risk and administrative charges

      (297 )      (826,961 )      (357 )      (735,541 )      (576 ) 

Net investment income (loss)

      603       (133,094 )      (100 )      (709,816 )      (209 ) 

Net realized gain (loss)

      107       364,750       (112 )      531,904       674  

Capital gain distribution from mutual funds

      3,135       2,995,117       840       545,480       1,293  

Change in unrealized appreciation (depreciation) of investments

      (11,280 )      (13,776,946 )      (15,067 )      (10,535,685 )      (20,385 ) 

Increase (decrease) in net assets from operations

      (7,435 )      (10,550,173 )      (14,439 )      (10,168,117 )      (18,627 ) 

From contract transactions:

           

Payments received from contract owners

      —       9,655,308       —       5,911,786       —  

Payments for contract benefits or terminations

      (556 )      (3,022,068 )      —       (4,019,855 )      —  

Transfers between sub-accounts (including fixed account), net

      36,106       970,260       1,777       (100,624 )      1,731  

Contract maintenance charges

      (1,085 )      (1,157,337 )      (1,643 )      (998,822 )      (1,816 ) 

Increase (decrease) in net assets from contract transactions

      34,465       6,446,163       134       792,485       (85 ) 

Increase (decrease) in net assets

      27,030       (4,104,010 )      (14,305 )      (9,375,632 )      (18,712 ) 

Net assets at beginning of period

      41,245       68,742,945       100,030       65,253,076       119,095  

Net assets at end of period

    $ 68,275     $ 64,638,935     $ 85,725     $ 55,877,444     $ 100,383  

Beginning units

      2,926       5,092,788       7,415       5,039,140       8,592  

Units issued

      2,983       1,141,723       276       779,740       307  

Units redeemed

      (265 )      (600,376 )      (262 )      (716,398 )      (304 ) 

Ending units

      5,644       5,634,135       7,429       5,102,482       8,595  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

41

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA Global
Index Allocation
75/25 Portfolio
Class 3		     SAST SA Global
Index Allocation
90/10 Portfolio
Class 1		     SAST SA Global
Index Allocation
90/10 Portfolio
Class 3		     SAST SA
Goldman Sachs
Global Bond
Portfolio Class 1		     SAST SA
Goldman Sachs
Global Bond
Portfolio Class 2		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 979,947     $ 75,275     $ 4,145,132     $ —     $ —  

Mortality and expense risk and administrative charges

      (807,960 )      (18,193 )      (3,002,449 )      (176,591 )      (44,615 ) 

Net investment income (loss)

      171,987       57,082       1,142,683       (176,591 )      (44,615 ) 

Net realized gain (loss)

      868,106       16,497       2,852,639       (482,949 )      (82,755 ) 

Capital gain distribution from mutual funds

      2,311,625       140,384       8,741,352       —       —  

Change in unrealized appreciation (depreciation) of investments

      5,116,541       418,175       23,314,166       946,486       194,739  

Increase (decrease) in net assets from operations

      8,468,259       632,138       36,050,840       286,946       67,369  

From contract transactions:

           

Payments received from contract owners

      7,678,353       58,500       17,598,050       14,105       43,638  

Payments for contract benefits or terminations

      (3,616,443 )      (4,368 )      (10,007,267 )      (1,266,417 )      (306,411 ) 

Transfers between sub-accounts (including fixed account), net

      1,251,319       (5,488 )      4,491,486       216,195       106,372  

Contract maintenance charges

      (1,073,214 )      (64,897 )      (4,035,706 )      (7,165 )      (4,722 ) 

Increase (decrease) in net assets from contract transactions

      4,240,015       (16,253 )      8,046,563       (1,043,295 )      (161,123 ) 

Increase (decrease) in net assets

      12,708,274       615,885       44,097,403       (756,349 )      (93,754 ) 

Net assets at beginning of period

      57,975,040       3,579,998       215,384,933       12,298,874       2,952,649  

Net assets at end of period

    $ 70,683,314     $ 4,195,883     $ 259,482,336     $ 11,542,525     $ 2,858,895  

Beginning units

      5,193,674       300,454       18,987,109       680,771       166,955  

Units issued

      822,651       5,050       2,401,841       37,828       10,839  

Units redeemed

      (469,671 )      (6,066 )      (1,732,812 )      (92,509 )      (20,076 ) 

Ending units

      5,546,654       299,438       19,656,138       626,090       157,718  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 67,088     $ 55,203     $ 2,842,870     $ —     $ —  

Mortality and expense risk and administrative charges

      (742,490 )      (17,337 )      (2,771,102 )      (206,275 )      (51,984 ) 

Net investment income (loss)

      (675,402 )      37,866       71,768       (206,275 )      (51,984 ) 

Net realized gain (loss)

      639,326       15,082       1,917,828       (344,867 )      (77,835 ) 

Capital gain distribution from mutual funds

      726,906       65,723       3,988,998       —       —  

Change in unrealized appreciation (depreciation) of investments

      (11,659,967 )      (821,712 )      (49,100,161 )      (2,704,481 )      (676,475 ) 

Increase (decrease) in net assets from operations

      (10,969,137 )      (703,041 )      (43,121,567 )      (3,255,623 )      (806,294 ) 

From contract transactions:

           

Payments received from contract owners

      7,486,499       101,706       27,888,474       196,199       66,304  

Payments for contract benefits or terminations

      (2,807,901 )      (1,110 )      (9,331,194 )      (1,066,821 )      (336,632 ) 

Transfers between sub-accounts (including fixed account), net

      (229,039 )      (2,961 )      1,197,953       (99,300 )      73,209  

Contract maintenance charges

      (1,051,583 )      (69,838 )      (3,936,237 )      (7,214 )      (5,160 ) 

Adjustments to net assets allocated to contracts in payout period

      2,600       —       —       5,718       —  

Increase (decrease) in net assets from contract transactions

      3,400,576       27,797       15,818,996       (971,418 )      (202,279 ) 

Increase (decrease) in net assets

      (7,568,561 )      (675,244 )      (27,302,571 )      (4,227,041 )      (1,008,573 ) 

Net assets at beginning of period

      65,543,601       4,255,242       242,687,504       16,525,915       3,961,222  

Net assets at end of period

    $ 57,975,040     $ 3,579,998     $ 215,384,933     $ 12,298,874     $ 2,952,649  

Beginning units

      4,899,011       298,288       17,681,240       725,359       178,479  

Units issued

      915,876       8,881       3,244,225       31,627       14,551  

Units redeemed

      (621,213 )      (6,715 )      (1,938,356 )      (76,215 )      (26,075 ) 

Ending units

      5,193,674       300,454       18,987,109       680,771       166,955  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

42

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
Goldman Sachs
Global Bond
Portfolio Class 3		     SAST SA
Goldman Sachs
Multi-Asset
Insights Portfolio
Class 1		     SAST SA
Goldman Sachs
Multi-Asset
Insights Portfolio
Class 3		     SAST SA Index
Allocation 60/40
Portfolio Class 1		     SAST SA Index
Allocation 60/40
Portfolio Class 3		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ —     $ 68     $ 258,710     $ 5,556     $ 2,511,243  

Mortality and expense risk and administrative charges

      (2,438,606 )      (25 )      (352,261 )      (1,805 )      (2,195,130 ) 

Net investment income (loss)

      (2,438,606 )      43       (93,551 )      3,751       316,113  

Net realized gain (loss)

      (5,359,557 )      (32 )      (105,896 )      (67 )      2,378,864  

Capital gain distribution from mutual funds

      —       —       —       13,947       7,328,945  

Change in unrealized appreciation (depreciation) of investments

      12,082,774       922       4,117,256       28,009       12,030,261  

Increase (decrease) in net assets from operations

      4,284,611       933       3,917,809       45,640       22,054,183  

From contract transactions:

           

Payments received from contract owners

      4,207,643       —       2,870,354       —       11,897,931  

Payments for contract benefits or terminations

      (17,330,393 )      (511 )      (1,498,450 )      —       (12,152,035 ) 

Transfers between sub-accounts (including fixed account), net

      14,216,270       (33 )      (318,842 )      (131 )      857,091  

Contract maintenance charges

      (2,695,088 )      (107 )      (462,233 )      (722 )      (2,708,686 ) 

Adjustments to net assets allocated to contracts in payout period

      (361 )      —       —       —       —  

Increase (decrease) in net assets from contract transactions

      (1,601,929 )      (651 )      590,829       (853 )      (2,105,699 ) 

Increase (decrease) in net assets

      2,682,682       282       4,508,638       44,787       19,948,484  

Net assets at beginning of period

      173,623,698       6,050       25,552,863       309,702       163,643,018  

Net assets at end of period

    $ 176,306,380     $ 6,332     $ 30,061,501     $ 354,489     $ 183,591,502  

Beginning units

      15,616,106       509       2,281,843       22,841       12,778,397  

Units issued

      2,138,943       5       329,870       35       1,523,040  

Units redeemed

      (2,260,105 )      (56 )      (278,883 )      (95 )      (1,686,011 ) 

Ending units

      15,494,944       458       2,332,830       22,781       12,615,426  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ —     $ —     $ —     $ 4,998     $ 2,215,113  

Mortality and expense risk and administrative charges

      (2,718,237 )      (26 )      (333,797 )      (2,533 )      (2,115,826 ) 

Net investment income (loss)

      (2,718,237 )      (26 )      (333,797 )      2,465       99,287  

Net realized gain (loss)

      (4,823,887 )      (11 )      41,506       4,226       2,220,414  

Capital gain distribution from mutual funds

      —       331       1,368,693       11,264       5,914,195  

Change in unrealized appreciation (depreciation) of investments

      (38,371,830 )      (1,577 )      (6,274,825 )      (130,234 )      (37,964,201 ) 

Increase (decrease) in net assets from operations

      (45,913,954 )      (1,283 )      (5,198,423 )      (112,279 )      (29,730,305 ) 

From contract transactions:

           

Payments received from contract owners

      8,019,112       —       3,541,313       —       19,320,343  

Payments for contract benefits or terminations

      (16,635,227 )      (553 )      (1,003,251 )      —       (12,685,589 ) 

Transfers between sub-accounts (including fixed account), net

      (208,965 )      115       (969,430 )      (347,474 )      7,019,513  

Contract maintenance charges

      (2,935,179 )      (120 )      (468,536 )      (813 )      (2,736,161 ) 

Adjustments to net assets allocated to contracts in payout period

      4,732       —       —       —       8,680  

Increase (decrease) in net assets from contract transactions

      (11,755,527 )      (558 )      1,100,096       (348,287 )      10,926,786  

Increase (decrease) in net assets

      (57,669,481 )      (1,841 )      (4,098,327 )      (460,566 )      (18,803,519 ) 

Net assets at beginning of period

      231,293,179       7,891       29,651,190       770,268       182,446,537  

Net assets at end of period

    $ 173,623,698     $ 6,050     $ 25,552,863     $ 309,702     $ 163,643,018  

Beginning units

      16,534,144       555       2,187,161       48,161       11,965,926  

Units issued

      1,928,179       9       450,337       71       2,532,504  

Units redeemed

      (2,846,217 )      (55 )      (355,655 )      (25,391 )      (1,720,033 ) 

Ending units

      15,616,106       509       2,281,843       22,841       12,778,397  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

43

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA Index
Allocation 80/20
Portfolio Class 1		     SAST SA Index
Allocation 80/20
Portfolio Class 3		     SAST SA Index
Allocation 90/10
Portfolio Class 1		     SAST SA Index
Allocation 90/10
Portfolio Class 3		     SAST SA
International
Index Portfolio
Class 1		  

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 51,974     $ 5,055,151     $ 138,028     $ 14,564,392     $ 28,588  

Mortality and expense risk and administrative charges

      (13,598 )      (4,138,601 )      (55,370 )      (11,523,887 )      (6,122 ) 

Net investment income (loss)

      38,376       916,550       82,658       3,040,505       22,466  

Net realized gain (loss)

      18,756       5,464,177       435,332       15,469,251       1,507  

Capital gain distribution from mutual funds

      142,148       15,926,607       368,529       44,541,470       —  

Change in unrealized appreciation (depreciation) of investments

      245,634       28,824,999       302,130       93,183,899       154,538  

Increase (decrease) in net assets from operations

      444,914       51,132,333       1,188,649       156,235,125       178,511  

From contract transactions:

           

Payments received from contract owners

      812,525       20,110,517       910,817       46,525,447       —  

Payments for contract benefits or terminations

      (36,041 )      (22,310,550 )      (2,252,323 )      (56,811,994 )      (130,836 ) 

Transfers between sub-accounts (including fixed account), net

      40,843       1,558,361       620,703       3,491,762       121,982  

Contract maintenance charges

      (38,424 )      (5,409,474 )      (146,236 )      (15,556,208 )      (2,070 ) 

Increase (decrease) in net assets from contract transactions

      778,903       (6,051,146 )      (867,039 )      (22,350,993 )      (10,924 ) 

Increase (decrease) in net assets

      1,223,817       45,081,187       321,610       133,884,132       167,587  

Net assets at beginning of period

      1,925,282       305,021,683       7,930,353       848,552,672       1,069,777  

Net assets at end of period

    $ 3,149,099     $ 350,102,870     $ 8,251,963     $ 982,436,804     $ 1,237,364  

Beginning units

      130,945       22,016,091       523,609       59,262,262       104,015  

Units issued

      55,880       1,890,874       285,065       4,757,532       11,299  

Units redeemed

      (5,422 )      (2,288,659 )      (353,940 )      (6,167,405 )      (12,349 ) 

Ending units

      181,403       21,618,306       454,734       57,852,389       102,965  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 32,855     $ 4,424,777     $ 134,201     $ 12,557,453     $ 27,586  

Mortality and expense risk and administrative charges

      (10,872 )      (4,015,941 )      (37,831 )      (11,216,712 )      (5,954 ) 

Net investment income (loss)

      21,983       408,836       96,370       1,340,741       21,632  

Net realized gain (loss)

      93,416       5,449,431       76,945       13,434,987       (1,326 ) 

Capital gain distribution from mutual funds

      63,793       10,073,700       225,575       24,739,216       2,892  

Change in unrealized appreciation (depreciation) of investments

      (566,277 )      (77,907,546 )      (1,503,374 )      (222,211,683 )      (212,120 ) 

Increase (decrease) in net assets from operations

      (387,085 )      (61,975,579 )      (1,104,484 )      (182,696,739 )      (188,922 ) 

From contract transactions:

           

Payments received from contract owners

      47,369       32,559,045       1,752,942       78,882,767       —  

Payments for contract benefits or terminations

      (4,713 )      (16,654,382 )      (75,483 )      (39,424,861 )      (11,989 ) 

Transfers between sub-accounts (including fixed account), net

      (48,372 )      (343,880 )      513,474       (5,927,467 )      14,662  

Contract maintenance charges

      (38,585 )      (5,500,961 )      (108,205 )      (16,135,311 )      (1,401 ) 

Adjustments to net assets allocated to contracts in payout period

      —       138,337       —       1,589       —  

Increase (decrease) in net assets from contract transactions

      (44,301 )      10,198,159       2,082,728       17,396,717       1,272  

Increase (decrease) in net assets

      (431,386 )      (51,777,420 )      978,244       (165,300,022 )      (187,650 ) 

Net assets at beginning of period

      2,356,668       356,799,103       6,952,109       1,013,852,694       1,257,427  

Net assets at end of period

    $ 1,925,282     $ 305,021,683     $ 7,930,353     $ 848,552,672     $ 1,069,777  

Beginning units

      133,959       21,314,934       381,020       58,148,904       103,939  

Units issued

      28,766       3,171,448       165,242       7,056,142       3,164  

Units redeemed

      (31,780 )      (2,470,291 )      (22,653 )      (5,942,784 )      (3,088 ) 

Ending units

      130,945       22,016,091       523,609       59,262,262       104,015  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

44

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

                                                                                                                                 
           
      


 SAST SA
International
Index Portfolio
Class 3		  
 
 
 		    


 SAST SA
Invesco Growth
Opportunities
Portfolio Class 1		  
 
 
 		    


 SAST SA
Invesco Growth
Opportunities
Portfolio Class 2		  
 
 
 		    


 SAST SA
Invesco Growth
Opportunities
Portfolio Class 3		  
 
 
 		    

 SAST SA Janus
Focused Growth
Portfolio Class 1		  
 
 

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 528,327     $ —     $ —     $ —     $ —  

Mortality and expense risk and administrative charges

      (281,373 )      (95,037 )      (36,542 )      (1,632,212 )      (195,739 ) 

Net investment income (loss)

      246,954       (95,037 )      (36,542 )      (1,632,212 )      (195,739 ) 

Net realized gain (loss)

      (175,449 )      (515,264 )      (130,900 )      (8,734,826 )      163,928  

Change in unrealized appreciation (depreciation) of investments

      3,060,636       1,284,945       405,929       22,043,467       4,084,379  

Increase (decrease) in net assets from operations

      3,132,141       674,644       238,487       11,676,429       4,052,568  

From contract transactions:

           

Payments received from contract owners

      3,315,985       21,134       79       4,069,439       34,777  

Payments for contract benefits or terminations

      (1,592,776 )      (548,202 )      (120,275 )      (9,568,943 )      (937,533 ) 

Transfers between sub-accounts (including fixed account), net

      (152,747 )      163,022       14,764       4,422,927       445,784  

Contract maintenance charges

      (273,715 )      (4,953 )      (3,059 )      (1,495,411 )      (5,445 ) 

Adjustments to net assets allocated to contracts in payout period

      —       (116 )      —       14       —  

Increase (decrease) in net assets from contract transactions

      1,296,747       (369,115 )      (108,491 )      (2,571,974 )      (462,417 ) 

Increase (decrease) in net assets

      4,428,888       305,529       129,996       9,104,455       3,590,151  

Net assets at beginning of period

      19,940,353       6,351,748       2,324,188       109,127,892       11,216,948  

Net assets at end of period

    $ 24,369,241     $ 6,657,277     $ 2,454,184     $ 118,232,347     $ 14,807,099  

Beginning units

      1,962,422       445,094       169,040       5,443,217       348,155  

Units issued

      673,936       38,541       5,876       511,087       30,649  

Units redeemed

      (563,873 )      (62,483 )      (13,902 )      (723,821 )      (41,141 ) 

Ending units

      2,072,485       421,152       161,014       5,230,483       337,663  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 470,471     $ —     $ —     $ —     $ —  

Mortality and expense risk and administrative charges

      (214,071 )      (109,716 )      (40,553 )      (1,686,208 )      (198,493 ) 

Net investment income (loss)

      256,400       (109,716 )      (40,553 )      (1,686,208 )      (198,493 ) 

Net realized gain (loss)

      90,136       1,270       (8,538 )      (4,152,893 )      569,700  

Capital gain distribution from mutual funds

      52,708       1,681,138       650,973       31,449,704       2,623,977  

Change in unrealized appreciation (depreciation) of investments

      (2,908,193 )      (5,392,621 )      (1,961,065 )      (81,466,545 )      (9,186,797 ) 

Increase (decrease) in net assets from operations

      (2,508,949 )      (3,819,929 )      (1,359,183 )      (55,855,942 )      (6,191,613 ) 

From contract transactions:

           

Payments received from contract owners

      5,120,995       17,940       750       8,077,043       39,738  

Payments for contract benefits or terminations

      (605,763 )      (759,818 )      (165,623 )      (9,370,228 )      (1,140,563 ) 

Transfers between sub-accounts (including fixed account), net

      2,325,828       182,811       92,748       22,421,601       (9,162 ) 

Contract maintenance charges

      (207,124 )      (5,399 )      (3,191 )      (1,524,438 )      (4,830 ) 

Adjustments to net assets allocated to contracts in payout period

      —       (107 )      —       (244 )      (2,441 ) 

Increase (decrease) in net assets from contract transactions

      6,633,936       (564,573 )      (75,316 )      19,603,734       (1,117,258 ) 

Increase (decrease) in net assets

      4,124,987       (4,384,502 )      (1,434,499 )      (36,252,208 )      (7,308,871 ) 

Net assets at beginning of period

      15,815,366       10,736,250       3,758,687       145,380,100       18,525,819  

Net assets at end of period

    $ 19,940,353     $ 6,351,748     $ 2,324,188     $ 109,127,892     $ 11,216,948  

Beginning units

      1,309,733       478,702       173,669       4,708,484       374,703  

Units issued

      958,551       31,599       10,587       1,656,483       17,495  

Units redeemed

      (305,862 )      (65,207 )      (15,216 )      (921,750 )      (44,043 ) 

Ending units

      1,962,422       445,094       169,040       5,443,217       348,155  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

45

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

                                                                                                                                 
           
      

 SAST SA Janus
Focused Growth
Portfolio Class 2		  
 
 		    

 SAST SA Janus
Focused Growth
Portfolio Class 3		  
 
 		    



 SAST SA
JPMorgan
Diversified
Balanced
Portfolio Class 1		  
 
 
 
 		    



 SAST SA
JPMorgan
Diversified
Balanced
Portfolio Class 2		  
 
 
 
 		    



 SAST SA
JPMorgan
Diversified
Balanced
Portfolio Class 3		  
 
 
 
 

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ —     $ —     $ 1,500,025     $ 251,013     $ 2,563,647  

Mortality and expense risk and administrative charges

      (113,092 )      (1,714,872 )      (1,466,483 )      (279,277 )      (2,560,128 ) 

Net investment income (loss)

      (113,092 )      (1,714,872 )      33,542       (28,264 )      3,519  

Net realized gain (loss)

      134,285       (1,218,793 )      (3,968,514 )      (414,415 )      (5,361,298 ) 

Change in unrealized appreciation (depreciation) of investments

      2,252,417       40,950,756       16,404,415       2,674,876       29,493,029  

Increase (decrease) in net assets from operations

      2,273,610       38,017,091       12,469,443       2,232,197       24,135,250  

From contract transactions:

           

Payments received from contract owners

      4,431       6,066,678       1,252,914       443,090       8,364,828  

Payments for contract benefits or terminations

      (783,484 )      (10,135,721 )      (12,796,400 )      (2,023,246 )      (17,748,521 ) 

Transfers between sub-accounts (including fixed account), net

      (157,137 )      (9,539,933 )      (757,042 )      (79,573 )      628,797  

Contract maintenance charges

      (13,313 )      (1,487,155 )      (33,279 )      (18,504 )      (2,384,120 ) 

Adjustments to net assets allocated to contracts in payout period

      (2,116 )      (417 )      (3,438 )      4,071       2,034  

Increase (decrease) in net assets from contract transactions

      (951,619 )      (15,096,548 )      (12,337,245 )      (1,674,162 )      (11,136,982 ) 

Increase (decrease) in net assets

      1,321,991       22,920,543       132,198       558,035       12,998,268  

Net assets at beginning of period

      6,532,954       107,989,498       98,390,143       17,626,978       183,448,512  

Net assets at end of period

    $ 7,854,945     $ 130,910,041     $ 98,522,341     $ 18,185,013     $ 196,446,780  

Beginning units

      207,384       3,657,471       3,189,769       591,618       8,721,707  

Units issued

      1,007       395,046       95,239       22,442       744,153  

Units redeemed

      (26,469 )      (818,583 )      (470,183 )      (76,107 )      (1,216,797 ) 

Ending units

      181,922       3,233,934       2,814,825       537,953       8,249,063  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ —     $ —     $ 1,230,107     $ 199,134     $ 1,837,912  

Mortality and expense risk and administrative charges

      (126,585 )      (1,682,128 )      (1,682,457 )      (293,551 )      (2,678,355 ) 

Net investment income (loss)

      (126,585 )      (1,682,128 )      (452,350 )      (94,417 )      (840,443 ) 

Net realized gain (loss)

      338,447       4,168,717       (172,401 )      (92,886 )      (1,664,826 ) 

Capital gain distribution from mutual funds

      1,650,170       26,907,955       13,992,407       2,510,793       26,025,606  

Change in unrealized appreciation (depreciation) of investments

      (5,725,075 )      (82,176,632 )      (36,019,992 )      (6,095,397 )      (62,834,484 ) 

Increase (decrease) in net assets from operations

      (3,863,043 )      (52,782,088 )      (22,652,336 )      (3,771,907 )      (39,314,147 ) 

From contract transactions:

           

Payments received from contract owners

      13,196       10,184,517       1,677,627       745,423       15,386,358  

Payments for contract benefits or terminations

      (533,518 )      (10,605,416 )      (13,691,603 )      (2,292,370 )      (17,534,083 ) 

Transfers between sub-accounts (including fixed account), net

      (514,797 )      12,197,428       (2,708,533 )      853,220       165,297  

Contract maintenance charges

      (14,097 )      (1,431,459 )      (35,645 )      (18,163 )      (2,465,477 ) 

Adjustments to net assets allocated to contracts in payout period

      322       5       (33,099 )      (1,879 )      (571 ) 

Increase (decrease) in net assets from contract transactions

      (1,048,894 )      10,345,075       (14,791,253 )      (713,769 )      (4,448,476 ) 

Increase (decrease) in net assets

      (4,911,937 )      (42,437,013 )      (37,443,589 )      (4,485,676 )      (43,762,623 ) 

Net assets at beginning of period

      11,444,891       150,426,511       135,833,732       22,112,654       227,211,135  

Net assets at end of period

    $ 6,532,954     $ 107,989,498     $ 98,390,143     $ 17,626,978     $ 183,448,512  

Beginning units

      237,666       3,337,047       3,641,623       612,632       8,913,640  

Units issued

      11,847       913,863       114,415       57,586       1,109,983  

Units redeemed

      (42,129 )      (593,439 )      (566,269 )      (78,600 )      (1,301,916 ) 

Ending units

      207,384       3,657,471       3,189,769       591,618       8,721,707  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

46

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

                                                                                                                                 
           
      



 SAST SA
JPMorgan
Emerging
Markets Portfolio
Class 1		  
 
 
 
 		    



 SAST SA
JPMorgan
Emerging
Markets Portfolio
Class 2		  
 
 
 
 		    



 SAST SA
JPMorgan
Emerging
Markets Portfolio
Class 3		  
 
 
 
 		    


 SAST SA
JPMorgan
Equity-Income
Portfolio Class 1		  
 
 
 		    


 SAST SA
JPMorgan
Equity-Income
Portfolio Class 2		  
 
 
 

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 450,902     $ 83,340     $ 3,237,250     $ 2,568,772     $ 213,653  

Mortality and expense risk and administrative charges

      (175,336 )      (34,782 )      (1,287,889 )      (1,595,204 )      (146,456 ) 

Net investment income (loss)

      275,566       48,558       1,949,361       973,568       67,197  

Net realized gain (loss)

      (84,308 )      (1,446 )      (247,405 )      3,307,356       145,535  

Capital gain distribution from mutual funds

      —       —       —       9,567,213       855,024  

Change in unrealized appreciation (depreciation) of investments

      763,078       129,770       5,347,760       (10,855,222 )      (827,409 ) 

Increase (decrease) in net assets from operations

      954,336       176,882       7,049,716       2,992,915       240,347  

From contract transactions:

           

Payments received from contract owners

      68,984       1,015       2,395,909       371,268       156,552  

Payments for contract benefits or terminations

      (1,100,783 )      (196,449 )      (8,957,462 )      (12,363,223 )      (1,074,549 ) 

Transfers between sub-accounts (including fixed account), net

      152,532       16,447       5,096,734       116,449       (230,037 ) 

Contract maintenance charges

      (8,580 )      (5,097 )      (975,262 )      (32,014 )      (7,837 ) 

Adjustments to net assets allocated to contracts in payout period

      (92 )      (906 )      (12 )      (8,042 )      —  

Increase (decrease) in net assets from contract transactions

      (887,939 )      (184,990 )      (2,440,093 )      (11,915,562 )      (1,155,871 ) 

Increase (decrease) in net assets

      66,397       (8,108 )      4,609,623       (8,922,647 )      (915,524 ) 

Net assets at beginning of period

      11,536,400       2,242,419       85,468,640       113,914,930       10,205,445  

Net assets at end of period

    $ 11,602,797     $ 2,234,311     $ 90,078,263     $ 104,992,283     $ 9,289,921  

Beginning units

      661,331       130,533       6,827,097       1,385,319       123,353  

Units issued

      37,187       5,323       805,218       39,786       2,932  

Units redeemed

      (82,570 )      (15,960 )      (951,676 )      (183,238 )      (17,146 ) 

Ending units

      615,948       119,896       6,680,639       1,241,867       109,139  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 371,268     $ 64,472     $ 2,481,283     $ 2,224,993     $ 185,266  

Mortality and expense risk and administrative charges

      (202,097 )      (39,177 )      (1,401,986 )      (1,786,619 )      (168,016 ) 

Net investment income (loss)

      169,171       25,295       1,079,297       438,374       17,250  

Net realized gain (loss)

      237,442       19,508       1,579,930       7,036,909       481,960  

Capital gain distribution from mutual funds

      105,104       19,671       783,567       12,923,371       1,171,997  

Change in unrealized appreciation (depreciation) of investments

      (4,985,495 )      (894,993 )      (33,966,789 )      (24,916,865 )      (2,105,196 ) 

Increase (decrease) in net assets from operations

      (4,473,778 )      (830,519 )      (30,523,995 )      (4,518,211 )      (433,989 ) 

From contract transactions:

           

Payments received from contract owners

      155,788       636       3,710,356       1,096,560       291,929  

Payments for contract benefits or terminations

      (1,289,317 )      (179,568 )      (8,690,358 )      (12,112,841 )      (1,182,691 ) 

Transfers between sub-accounts (including fixed account), net

      (895,953 )      69,295       4,988,171       (413,819 )      (407,026 ) 

Contract maintenance charges

      (8,847 )      (5,326 )      (1,018,597 )      (34,600 )      (10,051 ) 

Adjustments to net assets allocated to contracts in payout period

      13,181       —       (1,736 )      15,371       1,772  

Increase (decrease) in net assets from contract transactions

      (2,025,148 )      (114,963 )      (1,012,164 )      (11,449,329 )      (1,306,067 ) 

Increase (decrease) in net assets

      (6,498,926 )      (945,482 )      (31,536,159 )      (15,967,540 )      (1,740,056 ) 

Net assets at beginning of period

      18,035,326       3,187,901       117,004,799       129,882,470       11,945,501  

Net assets at end of period

    $ 11,536,400     $ 2,242,419     $ 85,468,640     $ 113,914,930     $ 10,205,445  

Beginning units

      774,865       136,018       6,808,401       1,527,085       139,401  

Units issued

      27,981       6,417       1,175,807       65,021       11,807  

Units redeemed

      (141,515 )      (11,902 )      (1,157,111 )      (206,787 )      (27,855 ) 

Ending units

      661,331       130,533       6,827,097       1,385,319       123,353  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

47

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

                                                                                                                                 
           
      


 SAST SA
JPMorgan
Equity-Income
Portfolio Class 3		  
 
 
 		    


 SAST SA
JPMorgan
Global Equities
Portfolio Class 1		  
 
 
 		    


 SAST SA
JPMorgan
Global Equities
Portfolio Class 2		  
 
 
 		    


 SAST SA
JPMorgan
Global Equities
Portfolio Class 3		  
 
 
 		    


 SAST SA
JPMorgan Large
Cap Core
Portfolio Class 1		  
 
 
 

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 4,854,941     $ 457,361     $ 34,172     $ 479,235     $ 167,522  

Mortality and expense risk and administrative charges

      (2,826,998 )      (466,832 )      (38,960 )      (517,528 )      (336,509 ) 

Net investment income (loss)

      2,027,943       (9,471 )      (4,788 )      (38,293 )      (168,987 ) 

Net realized gain (loss)

      (478,135 )      930,658       18,671       (451,536 )      1,140,724  

Capital gain distribution from mutual funds

      19,969,305       1,035,508       86,689       1,292,233       695,589  

Change in unrealized appreciation (depreciation) of investments

      (15,021,293 )      4,188,003       396,977       6,607,233       3,364,206  

Increase (decrease) in net assets from operations

      6,497,820       6,144,698       497,549       7,409,637       5,031,532  

From contract transactions:

           

Payments received from contract owners

      21,795,151       104,701       1,379       2,637,092       56,442  

Payments for contract benefits or terminations

      (17,040,010 )      (3,071,838 )      (399,590 )      (3,515,818 )      (2,461,025 ) 

Transfers between sub-accounts (including fixed account), net

      15,170,337       79,988       (15,499 )      (942,850 )      23,498  

Contract maintenance charges

      (2,575,728 )      (12,223 )      (3,086 )      (457,185 )      (8,047 ) 

Adjustments to net assets allocated to contracts in payout period

      10,958       (4,476 )      (1,470 )      (221 )      (200 ) 

Increase (decrease) in net assets from contract transactions

      17,360,708       (2,903,848 )      (418,266 )      (2,278,982 )      (2,389,332 ) 

Increase (decrease) in net assets

      23,858,528       3,240,850       79,283       5,130,655       2,642,200  

Net assets at beginning of period

      196,395,500       29,311,318       2,473,477       35,368,607       20,627,216  

Net assets at end of period

    $ 220,254,028     $ 32,552,168     $ 2,552,760     $ 40,499,262     $ 23,269,416  

Beginning units

      6,317,616       781,167       66,604       1,797,576       416,657  

Units issued

      1,653,108       18,336       2,172       212,700       14,533  

Units redeemed

      (1,032,437 )      (84,424 )      (12,317 )      (294,059 )      (53,820 ) 

Ending units

      6,938,287       715,079       56,459       1,716,217       377,370  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 3,410,642     $ 546,267     $ 41,405     $ 571,746     $ 221,380  

Mortality and expense risk and administrative charges

      (2,674,699 )      (499,699 )      (42,764 )      (523,731 )      (354,418 ) 

Net investment income (loss)

      735,943       46,568       (1,359 )      48,015       (133,038 ) 

Net realized gain (loss)

      6,222,115       1,757,474       55,584       69,297       1,559,396  

Capital gain distribution from mutual funds

      22,577,135       5,343,008       455,424       6,554,614       5,095,370  

Change in unrealized appreciation (depreciation) of investments

      (36,067,110 )      (13,884,072 )      (1,084,041 )      (14,046,924 )      (12,574,903 ) 

Increase (decrease) in net assets from operations

      (6,531,917 )      (6,737,022 )      (574,392 )      (7,374,998 )      (6,053,175 ) 

From contract transactions:

           

Payments received from contract owners

      29,461,424       268,990       27,697       3,918,155       185,743  

Payments for contract benefits or terminations

      (16,004,481 )      (2,752,601 )      (293,410 )      (3,042,326 )      (2,321,897 ) 

Transfers between sub-accounts (including fixed account), net

      (4,211,770 )      (1,169,241 )      (107,856 )      (660,597 )      (199,146 ) 

Contract maintenance charges

      (2,299,241 )      (11,688 )      (3,852 )      (449,183 )      (7,492 ) 

Adjustments to net assets allocated to contracts in payout period

      6,774       20,588       —       (784 )      2,395  

Increase (decrease) in net assets from contract transactions

      6,952,706       (3,643,952 )      (377,421 )      (234,735 )      (2,340,397 ) 

Increase (decrease) in net assets

      420,789       (10,380,974 )      (951,813 )      (7,609,733 )      (8,393,572 ) 

Net assets at beginning of period

      195,974,711       39,692,292       3,425,290       42,978,340       29,020,788  

Net assets at end of period

    $ 196,395,500     $ 29,311,318     $ 2,473,477     $ 35,368,607     $ 20,627,216  

Beginning units

      5,976,841       866,802       76,386       1,781,867       458,833  

Units issued

      1,841,932       34,073       3,442       347,884       16,145  

Units redeemed

      (1,501,157 )      (119,708 )      (13,224 )      (332,175 )      (58,321 ) 

Ending units

      6,317,616       781,167       66,604       1,797,576       416,657  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

48

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

                                                                                                                                 
           
      


 SAST SA
JPMorgan Large
Cap Core
Portfolio Class 2		  
 
 
 		    


 SAST SA
JPMorgan Large
Cap Core
Portfolio Class 3		  
 
 
 		    


 SAST SA
JPMorgan MFS
Core Bond
Portfolio Class 1		  
 
 
 		    


 SAST SA
JPMorgan MFS
Core Bond
Portfolio Class 2		  
 
 
 		    


 SAST SA
JPMorgan MFS
Core Bond
Portfolio Class 3		  
 
 
 

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 19,298     $ 334,633     $ 842,209     $ 150,549     $ 14,959,483  

Mortality and expense risk and administrative charges

      (47,895 )      (910,487 )      (442,391 )      (81,468 )      (7,795,051 ) 

Net investment income (loss)

      (28,597 )      (575,854 )      399,818       69,081       7,164,432  

Net realized gain (loss)

      3,265       (969,498 )      (578,211 )      (72,647 )      (7,611,162 ) 

Capital gain distribution from mutual funds

      99,554       2,052,371       —       —       —  

Change in unrealized appreciation (depreciation) of investments

      610,254       14,047,259       1,545,372       249,760       26,453,660  

Increase (decrease) in net assets from operations

      684,476       14,554,278       1,366,979       246,194       26,006,930  

From contract transactions:

           

Payments received from contract owners

      14,756       3,397,624       688,353       317,355       19,863,669  

Payments for contract benefits or terminations

      (469,429 )      (7,335,997 )      (4,323,409 )      (509,521 )      (54,189,056 ) 

Transfers between sub-accounts (including fixed account), net

      193,678       (205,293 )      941,728       375,193       60,711,404  

Contract maintenance charges

      (4,551 )      (610,855 )      (10,627 )      (8,288 )      (8,332,371 ) 

Adjustments to net assets allocated to contracts in payout period

      (108 )      —       (261 )      (521 )      (212 ) 

Increase (decrease) in net assets from contract transactions

      (265,654 )      (4,754,521 )      (2,704,216 )      174,218       18,053,434  

Increase (decrease) in net assets

      418,822       9,799,757       (1,337,237 )      420,412       44,060,364  

Net assets at beginning of period

      2,870,999       59,249,366       30,034,248       5,141,003       530,372,133  

Net assets at end of period

    $ 3,289,821     $ 69,049,123     $ 28,697,011     $ 5,561,415     $ 574,432,497  

Beginning units

      59,939       2,005,604       1,127,486       192,338       35,807,261  

Units issued

      5,313       251,976       96,676       26,902       6,484,269  

Units redeemed

      (10,480 )      (372,135 )      (207,427 )      (20,699 )      (5,064,903 ) 

Ending units

      54,772       1,885,445       1,016,735       198,541       37,226,627  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 25,211     $ 457,954     $ 791,757     $ 123,503     $ 11,906,717  

Mortality and expense risk and administrative charges

      (49,544 )      (904,250 )      (502,768 )      (93,360 )      (8,375,349 ) 

Net investment income (loss)

      (24,333 )      (446,296 )      288,989       30,143       3,531,368  

Net realized gain (loss)

      117,964       1,249,301       (508,246 )      (135,409 )      (7,536,795 ) 

Capital gain distribution from mutual funds

      717,086       14,652,695       —       —       —  

Change in unrealized appreciation (depreciation) of investments

      (1,633,968 )      (31,462,147 )      (5,231,876 )      (906,491 )      (93,679,801 ) 

Increase (decrease) in net assets from operations

      (823,251 )      (16,006,447 )      (5,451,133 )      (1,011,757 )      (97,685,228 ) 

From contract transactions:

           

Payments received from contract owners

      64,703       4,794,772       574,609       26,671       27,773,029  

Payments for contract benefits or terminations

      (270,116 )      (4,836,925 )      (4,728,691 )      (783,098 )      (54,560,771 ) 

Transfers between sub-accounts (including fixed account), net

      (58,117 )      2,016,543       283,759       (537,904 )      (29,390,285 ) 

Contract maintenance charges

      (4,539 )      (591,101 )      (11,809 )      (9,577 )      (8,885,517 ) 

Adjustments to net assets allocated to contracts in payout period

      —       (2,281 )      9,979       5,482       2,186  

Increase (decrease) in net assets from contract transactions

      (268,069 )      1,381,008       (3,872,153 )      (1,298,426 )      (65,061,358 ) 

Increase (decrease) in net assets

      (1,091,320 )      (14,625,439 )      (9,323,286 )      (2,310,183 )      (162,746,586 ) 

Net assets at beginning of period

      3,962,319       73,874,805       39,357,534       7,451,186       693,118,719  

Net assets at end of period

    $ 2,870,999     $ 59,249,366     $ 30,034,248     $ 5,141,003     $ 530,372,133  

Beginning units

      64,983       1,940,743       1,231,070       238,801       39,754,960  

Units issued

      2,183       347,222       116,917       18,861       4,572,684  

Units redeemed

      (7,227 )      (282,361 )      (220,501 )      (65,324 )      (8,520,383 ) 

Ending units

      59,939       2,005,604       1,127,486       192,338       35,807,261  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

49

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

                                                                                                                                 
           
      


 SAST SA
JPMorgan Mid-
Cap Growth
Portfolio Class 1		  
 
 
 		    


 SAST SA
JPMorgan Mid-
Cap Growth
Portfolio Class 2		  
 
 
 		    


 SAST SA
JPMorgan Mid-
Cap Growth
Portfolio Class 3		  
 
 
 		    


 SAST SA Large
Cap Growth
Index Portfolio
Class 1		  
 
 
 		    


 SAST SA Large
Cap Growth
Index Portfolio
Class 3		  
 
 
 

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ —     $ —     $ —     $ 4,163     $ 117,819  

Mortality and expense risk and administrative charges

      (848,279 )      (224,959 )      (3,737,478 )      (4,488 )      (463,478 ) 

Net investment income (loss)

      (848,279 )      (224,959 )      (3,737,478 )      (325 )      (345,659 ) 

Net realized gain (loss)

      (1,128,483 )      (315,886 )      (8,764,817 )      272       69,500  

Capital gain distribution from mutual funds

      —       —       —       20,022       908,127  

Change in unrealized appreciation (depreciation) of investments

      13,057,780       3,299,807       66,727,460       184,432       8,139,111  

Increase (decrease) in net assets from operations

      11,081,018       2,758,962       54,225,165       204,401       8,771,079  

From contract transactions:

           

Payments received from contract owners

      252,351       36,134       18,371,489       —       5,478,056  

Payments for contract benefits or terminations

      (4,855,059 )      (1,601,053 )      (19,601,519 )      (77,101 )      (2,216,785 ) 

Transfers between sub-accounts (including fixed account), net

      248,602       (380,745 )      948,935       206,447       791,143  

Contract maintenance charges

      (27,674 )      (25,287 )      (3,661,475 )      (1,587 )      (518,914 ) 

Adjustments to net assets allocated to contracts in payout period

      (517 )      (81 )      886       —       —  

Increase (decrease) in net assets from contract transactions

      (4,382,297 )      (1,971,032 )      (3,941,684 )      127,759       3,533,500  

Increase (decrease) in net assets

      6,698,721       787,930       50,283,481       332,160       12,304,579  

Net assets at beginning of period

      53,768,999       13,943,040       252,762,932       596,214       29,927,128  

Net assets at end of period

    $ 60,467,720     $ 14,730,970     $ 303,046,413     $ 928,374     $ 42,231,707  

Beginning units

      1,482,255       390,264       6,919,378       39,368       2,068,224  

Units issued

      50,490       2,669       844,701       15,838       609,131  

Units redeemed

      (148,125 )      (52,914 )      (945,789 )      (7,504 )      (387,229 ) 

Ending units

      1,384,620       340,019       6,818,290       47,702       2,290,126  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ —     $ —     $ —     $ 2,701     $ 75,432  

Mortality and expense risk and administrative charges

      (927,798 )      (253,754 )      (3,616,365 )      (3,738 )      (352,873 ) 

Net investment income (loss)

      (927,798 )      (253,754 )      (3,616,365 )      (1,037 )      (277,441 ) 

Net realized gain (loss)

      2,495,420       235,893       249,087       7,099       511,516  

Capital gain distribution from mutual funds

      14,174,085       3,917,573       71,865,345       91,779       4,382,434  

Change in unrealized appreciation (depreciation) of investments

      (39,157,052 )      (10,003,460 )      (161,269,441 )      (360,704 )      (14,645,415 ) 

Increase (decrease) in net assets from operations

      (23,415,345 )      (6,103,748 )      (92,771,374 )      (262,863 )      (10,028,906 ) 

From contract transactions:

           

Payments received from contract owners

      241,076       166,715       28,649,041       —       10,264,215  

Payments for contract benefits or terminations

      (5,587,964 )      (1,916,216 )      (16,671,305 )      (42,938 )      (1,057,736 ) 

Transfers between sub-accounts (including fixed account), net

      (6,749,370 )      (321,749 )      17,143,881       39,620       3,605,775  

Contract maintenance charges

      (28,515 )      (25,853 )      (3,517,041 )      (1,464 )      (391,659 ) 

Adjustments to net assets allocated to contracts in payout period

      (166,790 )      (242 )      (115 )      —       —  

Increase (decrease) in net assets from contract transactions

      (12,291,563 )      (2,097,345 )      25,604,461       (4,782 )      12,420,595  

Increase (decrease) in net assets

      (35,706,908 )      (8,201,093 )      (67,166,913 )      (267,645 )      2,391,689  

Net assets at beginning of period

      89,475,907       22,144,133       319,929,845       863,859       27,535,439  

Net assets at end of period

    $ 53,768,999     $ 13,943,040     $ 252,762,932     $ 596,214     $ 29,927,128  

Beginning units

      1,789,827       445,001       6,302,403       39,937       1,319,148  

Units issued

      40,472       13,395       1,606,837       2,735       997,297  

Units redeemed

      (348,044 )      (68,132 )      (989,862 )      (3,304 )      (248,221 ) 

Ending units

      1,482,255       390,264       6,919,378       39,368       2,068,224  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

50

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

                                                                                                                                 
           
      

 SAST SA Large
Cap Index
Portfolio Class 1		  
 
 		    

 SAST SA Large
Cap Index
Portfolio Class 3		  
 
 		    

 SAST SA Large
Cap Value Index
Portfolio Class 1		  
 
 		    

 SAST SA Large
Cap Value Index
Portfolio Class 3		  
 
 		    


 SAST SA MFS
Blue Chip
Growth Portfolio
Class 1		  
 
 
 

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 45,551     $ 967,465     $ 7,884     $ 645,450     $ 44,511  

Mortality and expense risk and administrative charges

      (20,334 )      (1,001,701 )      (3,156 )      (552,460 )      (127,944 ) 

Net investment income (loss)

      25,217       (34,236 )      4,728       92,990       (83,433 ) 

Net realized gain (loss)

      1,265       1,625,464       2,061       360,088       143,737  

Capital gain distribution from mutual funds

      132,922       3,266,790       42,388       3,905,706       148,898  

Change in unrealized appreciation (depreciation) of investments

      551,507       11,813,283       62,113       3,794,869       2,581,693  

Increase (decrease) in net assets from operations

      710,911       16,671,301       111,290       8,153,653       2,790,895  

From contract transactions:

           

Payments received from contract owners

      —       12,025,529       —       5,464,298       67,614  

Payments for contract benefits or terminations

      (2,466 )      (4,388,601 )      (52,572 )      (1,995,673 )      (1,098,890 ) 

Transfers between sub-accounts (including fixed account), net

      56,902       1,578,135       (156,608 )      3,106,218       471,858  

Contract maintenance charges

      (1,012 )      (850,220 )      (1,411 )      (613,318 )      (4,064 ) 

Adjustments to net assets allocated to contracts in payout period

      —       6,484       —       —       —  

Increase (decrease) in net assets from contract transactions

      53,424       8,371,327       (210,591 )      5,961,525       (563,482 ) 

Increase (decrease) in net assets

      764,335       25,042,628       (99,301 )      14,115,178       2,227,413  

Net assets at beginning of period

      2,813,186       64,557,407       658,550       36,590,538       7,237,256  

Net assets at end of period

    $ 3,577,521     $ 89,600,035     $ 559,249     $ 50,705,716     $ 9,464,669  

Beginning units

      179,155       4,312,283       46,022       2,670,271       409,746  

Units issued

      3,289       1,248,369       1,953       774,902       51,947  

Units redeemed

      (396 )      (734,062 )      (15,799 )      (360,340 )      (74,754 ) 

Ending units

      182,048       4,826,590       32,176       3,084,833       386,939  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 29,866     $ 729,277     $ 12,517     $ 626,168     $ —  

Mortality and expense risk and administrative charges

      (17,307 )      (794,728 )      (3,402 )      (389,347 )      (132,569 ) 

Net investment income (loss)

      12,559       (65,451 )      9,115       236,821       (132,569 ) 

Net realized gain (loss)

      162,402       2,565,299       (797 )      610,568       330,792  

Capital gain distribution from mutual funds

      135,312       3,838,710       53,531       2,886,110       1,676,885  

Change in unrealized appreciation (depreciation) of investments

      (859,209 )      (19,585,152 )      (94,537 )      (5,561,480 )      (5,354,120 ) 

Increase (decrease) in net assets from operations

      (548,936 )      (13,246,594 )      (32,688 )      (1,827,981 )      (3,479,012 ) 

From contract transactions:

           

Payments received from contract owners

      609,381       15,483,488       —       12,246,634       32,564  

Payments for contract benefits or terminations

      —       (2,811,843 )      (41,529 )      (965,565 )      (1,232,693 ) 

Transfers between sub-accounts (including fixed account), net

      (1,781,871 )      4,185,248       107,711       1,344,665       465,288  

Contract maintenance charges

      (398 )      (617,836 )      (1,571 )      (446,762 )      (3,409 ) 

Adjustments to net assets allocated to contracts in payout period

      —       (356 )      —       —       (1,247 ) 

Increase (decrease) in net assets from contract transactions

      (1,172,888 )      16,238,701       64,611       12,178,972       (739,497 ) 

Increase (decrease) in net assets

      (1,721,824 )      2,992,107       31,923       10,350,991       (4,218,509 ) 

Net assets at beginning of period

      4,535,010       61,565,300       626,627       26,239,547       11,455,765  

Net assets at end of period

    $ 2,813,186     $ 64,557,407     $ 658,550     $ 36,590,538     $ 7,237,256  

Beginning units

      234,357       3,309,792       41,057       1,781,257       448,218  

Units issued

      38,581       1,901,010       9,471       1,436,842       46,033  

Units redeemed

      (93,783 )      (898,519 )      (4,506 )      (547,828 )      (84,505 ) 

Ending units

      179,155       4,312,283       46,022       2,670,271       409,746  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

51

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

                                                                                                                                 
           
      


 SAST SA MFS
Blue Chip
Growth
Portfolio Class 2		  
 
 
 		    


 SAST SA MFS
Blue Chip
Growth Portfolio
Class 3		  
 
 
 		    


 SAST SA MFS
Massachusetts
Investors Trust
Portfolio Class 1		  
 
 
 		    


 SAST SA MFS
Massachusetts
Investors Trust
Portfolio Class 2		  
 
 
 		    


 SAST SA MFS
Massachusetts
Investors Trust
Portfolio Class 3		  
 
 
 

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 10,746     $ 347,359     $ 337,968     $ 42,336     $ 1,081,728  

Mortality and expense risk and administrative charges

      (45,007 )      (1,663,856 )      (598,625 )      (97,041 )      (2,703,880 ) 

Net investment income (loss)

      (34,261 )      (1,316,497 )      (260,657 )      (54,705 )      (1,622,152 ) 

Net realized gain (loss)

      26,700       (1,983,473 )      145,769       (113,965 )      65,307  

Capital gain distribution from mutual funds

      50,490       2,077,706       3,300,516       513,341       15,306,028  

Change in unrealized appreciation (depreciation) of investments

      888,609       40,194,670       3,107,801       623,455       15,122,557  

Increase (decrease) in net assets from operations

      931,538       38,972,406       6,293,429       968,126       28,871,740  

From contract transactions:

           

Payments received from contract owners

      —       6,721,474       288,133       37,163       4,849,870  

Payments for contract benefits or terminations

      (375,072 )      (10,454,025 )      (5,077,361 )      (807,268 )      (21,692,487 ) 

Transfers between sub-accounts (including fixed account), net

      (602 )      (5,246,479 )      115,500       (220,360 )      (5,412,664 ) 

Contract maintenance charges

      (4,781 )      (1,368,587 )      (13,178 )      (12,480 )      (2,155,545 ) 

Adjustments to net assets allocated to contracts in payout period

      —       —       4,119       (153 )      (271 ) 

Increase (decrease) in net assets from contract transactions

      (380,455 )      (10,347,617 )      (4,682,787 )      (1,003,098 )      (24,411,097 ) 

Increase (decrease) in net assets

      551,083       28,624,789       1,610,642       (34,972 )      4,460,643  

Net assets at beginning of period

      2,498,175       103,433,688       38,726,054       6,310,093       180,380,959  

Net assets at end of period

    $ 3,049,258     $ 132,058,477     $ 40,336,696     $ 6,275,121     $ 184,841,602  

Beginning units

      147,469       4,140,626       580,574       97,474       4,953,432  

Units issued

      2,177       569,034       17,529       1,166       281,130  

Units redeemed

      (19,877 )      (984,624 )      (79,371 )      (15,821 )      (874,994 ) 

Ending units

      129,769       3,725,036       518,732       82,819       4,359,568  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ —     $ —     $ 490,345     $ 67,910     $ 1,699,308  

Mortality and expense risk and administrative charges

      (46,780 )      (1,554,900 )      (654,312 )      (108,599 )      (2,943,452 ) 

Net investment income (loss)

      (46,780 )      (1,554,900 )      (163,967 )      (40,689 )      (1,244,144 ) 

Net realized gain (loss)

      115,427       2,684,493       2,425,011       201,880       4,729,064  

Capital gain distribution from mutual funds

      575,359       22,767,373       8,509,918       1,401,175       39,740,071  

Change in unrealized appreciation (depreciation) of investments

      (1,839,303 )      (65,633,557 )      (19,749,166 )      (3,015,206 )      (84,648,445 ) 

Increase (decrease) in net assets from operations

      (1,195,297 )      (41,736,591 )      (8,978,204 )      (1,452,840 )      (41,423,454 ) 

From contract transactions:

           

Payments received from contract owners

      57,323       10,944,066       362,285       149,254       5,934,424  

Payments for contract benefits or terminations

      (331,570 )      (8,916,228 )      (5,013,703 )      (864,747 )      (19,687,439 ) 

Transfers between sub-accounts (including fixed account), net

      (18,097 )      14,001,035       (330,492 )      (53,245 )      280,088  

Contract maintenance charges

      (4,380 )      (1,239,950 )      (13,450 )      (13,604 )      (2,345,422 ) 

Adjustments to net assets allocated to contracts in payout period

      —       (4,241 )      68,861       —       152  

Increase (decrease) in net assets from contract transactions

      (296,724 )      14,784,682       (4,926,499 )      (782,342 )      (15,818,197 ) 

Increase (decrease) in net assets

      (1,492,021 )      (26,951,909 )      (13,904,703 )      (2,235,182 )      (57,241,651 ) 

Net assets at beginning of period

      3,990,196       130,385,597       52,630,757       8,545,275       237,622,610  

Net assets at end of period

    $ 2,498,175     $ 103,433,688     $ 38,726,054     $ 6,310,093     $ 180,380,959  

Beginning units

      162,698       3,664,872       649,326       108,553       5,339,734  

Units issued

      4,904       1,049,540       12,481       2,849       408,909  

Units redeemed

      (20,133 )      (573,786 )      (81,233 )      (13,928 )      (795,211 ) 

Ending units

      147,469       4,140,626       580,574       97,474       4,953,432  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

52

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA MFS
Total Return
Portfolio Class 1		   SAST SA MFS
Total Return
Portfolio Class 2		   SAST SA MFS
Total Return
Portfolio Class 3		   SAST SA Mid
Cap Index
Portfolio Class 1		   SAST SA Mid
Cap Index
Portfolio Class 3

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 1,555,955     $ 304,029     $ 3,349,630     $ 6,922     $ 602,694  

Mortality and expense risk and administrative charges

      (1,239,207 )      (275,052 )      (2,764,542 )      (2,922 )      (700,914 ) 

Net investment income (loss)

      316,748       28,977       585,088       4,000       (98,220 ) 

Net realized gain (loss)

      413,100       (13,809 )      (2,040,124 )      (197 )      861,373  

Capital gain distribution from mutual funds

      2,668,408       570,951       6,609,204       14,108       1,459,101  

Change in unrealized appreciation (depreciation) of investments

      3,305,243       782,586       10,769,954       60,412       5,296,510  

Increase (decrease) in net assets from operations

      6,703,499       1,368,705       15,924,122       78,323       7,518,764  

From contract transactions:

           

Payments received from contract owners

      699,565       4,867       12,428,770       —       7,930,798  

Payments for contract benefits or terminations

      (8,607,905 )      (1,904,605 )      (19,867,884 )      (1,449 )      (2,013,066 ) 

Transfers between sub-accounts (including fixed account), net

      611,702       141,778       6,088,738       113,236       3,405,127  

Contract maintenance charges

      (28,581 )      (34,348 )      (2,005,530 )      (4,320 )      (792,344 ) 

Adjustments to net assets allocated to contracts in payout period

      (6,608 )      (1,392 )      212       —       (36 ) 

Increase (decrease) in net assets from contract transactions

      (7,331,827 )      (1,793,700 )      (3,355,694 )      107,467       8,530,479  

Increase (decrease) in net assets

      (628,328 )      (424,995 )      12,568,428       185,790       16,049,243  

Net assets at beginning of period

      83,170,971       17,902,085       191,224,452       448,604       47,060,604  

Net assets at end of period

    $ 82,542,643     $ 17,477,090     $ 203,792,880     $ 634,394     $ 63,109,847  

Beginning units

      1,611,941       350,983       7,424,416       33,760       3,603,718  

Units issued

      68,461       5,703       1,126,028       8,155       1,017,599  

Units redeemed

      (197,601 )      (40,832 )      (1,104,832 )      (583 )      (391,750 ) 

Ending units

      1,482,801       315,854       7,445,612       41,332       4,229,567  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 1,382,340     $ 267,044     $ 2,630,382     $ 4,242     $ 338,441  

Mortality and expense risk and administrative charges

      (1,375,508 )      (309,492 )      (2,848,470 )      (2,547 )      (561,277 ) 

Net investment income (loss)

      6,832       (42,448 )      (218,088 )      1,695       (222,836 ) 

Net realized gain (loss)

      2,487,826       482,629       370,493       2,657       936,786  

Capital gain distribution from mutual funds

      7,979,945       1,738,519       18,302,584       32,919       3,265,158  

Change in unrealized appreciation (depreciation) of investments

      (21,854,688 )      (4,684,978 )      (43,413,199 )      (96,507 )      (10,742,089 ) 

Increase (decrease) in net assets from operations

      (11,380,085 )      (2,506,278 )      (24,958,210 )      (59,236 )      (6,762,981 ) 

From contract transactions:

           

Payments received from contract owners

      845,042       48,958       17,571,991       105,776       11,963,749  

Payments for contract benefits or terminations

      (10,386,634 )      (1,590,433 )      (18,295,041 )      (12,233 )      (1,719,867 ) 

Transfers between sub-accounts (including fixed account), net

      (1,002,275 )      (627,789 )      (2,124,383 )      6,371       1,738,445  

Contract maintenance charges

      (31,240 )      (37,666 )      (1,963,815 )      (3,271 )      (646,824 ) 

Adjustments to net assets allocated to contracts in payout period

      (7,561 )      1,675       24,595       —       —  

Increase (decrease) in net assets from contract transactions

      (10,582,668 )      (2,205,255 )      (4,786,653 )      96,643       11,335,503  

Increase (decrease) in net assets

      (21,962,753 )      (4,711,533 )      (29,744,863 )      37,407       4,572,522  

Net assets at beginning of period

      105,133,724       22,613,618       220,969,315       411,197       42,488,082  

Net assets at end of period

    $ 83,170,971     $ 17,902,085     $ 191,224,452     $ 448,604     $ 47,060,604  

Beginning units

      1,803,122       393,747       7,399,339       26,638       2,774,022  

Units issued

      51,277       11,418       1,306,562       10,858       1,424,770  

Units redeemed

      (242,458 )      (54,182 )      (1,281,485 )      (3,736 )      (595,074 ) 

Ending units

      1,611,941       350,983       7,424,416       33,760       3,603,718  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

53

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
Morgan Stanley
International
Equities Portfolio
Class 1		   SAST SA
Morgan Stanley
International
Equities Portfolio
Class 2		   SAST SA
Morgan Stanley
International
Equities Portfolio
Class 3		   SAST SA
PIMCO RAE
International
Value Portfolio
Class 1		   SAST SA
PIMCO RAE
International
Value Portfolio
Class 2

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 297,400     $ 84,123     $ 1,127,456     $ 5,005     $ 322,860  

Mortality and expense risk and administrative charges

      (301,070 )      (96,552 )      (1,319,032 )      (444 )      (119,169 ) 

Net investment income (loss)

      (3,670 )      (12,429 )      (191,576 )      4,561       203,691  

Net realized gain (loss)

      (215,195 )      (68,868 )      (1,160,134 )      311       (153,826 ) 

Change in unrealized appreciation (depreciation) of investments

      2,919,588       917,406       13,505,187       12,576       1,069,728  

Increase (decrease) in net assets from operations

      2,700,723       836,109       12,153,477       17,448       1,119,593  

From contract transactions:

           

Payments received from contract owners

      42,863       14,641       1,950,515       2,100       5,686  

Payments for contract benefits or terminations

      (1,659,599 )      (815,251 )      (9,241,564 )      —       (742,199 ) 

Transfers between sub-accounts (including fixed account), net

      (254,228 )      (72,280 )      7,639       1,881       (194,282 ) 

Contract maintenance charges

      (7,545 )      (16,279 )      (745,072 )      (145 )      (21,024 ) 

Adjustments to net assets allocated to contracts in payout period

      (1,308 )      (1,092 )      (117 )      —       (241 ) 

Increase (decrease) in net assets from contract transactions

      (1,879,817 )      (890,261 )      (8,028,599 )      3,836       (952,060 ) 

Increase (decrease) in net assets

      820,906       (54,152 )      4,124,878       21,284       167,533  

Net assets at beginning of period

      19,070,867       5,983,907       85,496,128       101,437       7,632,433  

Net assets at end of period

    $ 19,891,773     $ 5,929,755     $ 89,621,006     $ 122,721     $ 7,799,966  

Beginning units

      1,211,682       395,694       6,447,892       11,326       424,190  

Units issued

      43,789       11,460       538,607       724       7,302  

Units redeemed

      (154,819 )      (65,535 )      (1,084,011 )      (355 )      (56,575 ) 

Ending units

      1,100,652       341,619       5,902,488       11,695       374,917  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 562,341     $ 165,799     $ 2,354,043     $ 4,521     $ 326,218  

Mortality and expense risk and administrative charges

      (313,315 )      (106,453 )      (1,422,709 )      (375 )      (128,234 ) 

Net investment income (loss)

      249,026       59,346       931,334       4,146       197,984  

Net realized gain (loss)

      74,335       112,968       12,483       2,333       (128,766 ) 

Capital gain distribution from mutual funds

      2,126,765       679,360       9,963,055       5,413       408,091  

Change in unrealized appreciation (depreciation) of investments

      (6,254,770 )      (2,156,475 )      (28,031,494 )      (18,413 )      (1,382,347 ) 

Increase (decrease) in net assets from operations

      (3,804,644 )      (1,304,801 )      (17,124,622 )      (6,521 )      (905,038 ) 

From contract transactions:

           

Payments received from contract owners

      117,836       46,495       3,309,104       11,576       30,581  

Payments for contract benefits or terminations

      (2,041,376 )      (862,724 )      (10,023,600 )      —       (631,067 ) 

Transfers between sub-accounts (including fixed account), net

      (742,366 )      (909,627 )      (5,888,950 )      (1,020 )      (511,872 ) 

Contract maintenance charges

      (7,640 )      (16,622 )      (783,198 )      —       (22,066 ) 

Adjustments to net assets allocated to contracts in payout period

      (224 )      3,770       1,757       —       —  

Increase (decrease) in net assets from contract transactions

      (2,673,770 )      (1,738,708 )      (13,384,887 )      10,556       (1,134,424 ) 

Increase (decrease) in net assets

      (6,478,414 )      (3,043,509 )      (30,509,509 )      4,035       (2,039,462 ) 

Net assets at beginning of period

      25,549,281       9,027,416       116,005,637       97,402       9,671,895  

Net assets at end of period

    $ 19,070,867     $ 5,983,907     $ 85,496,128     $ 101,437     $ 7,632,433  

Beginning units

      1,374,936       503,680       7,385,513       9,949       486,034  

Units issued

      42,829       11,119       660,052       2,796       10,457  

Units redeemed

      (206,083 )      (119,105 )      (1,597,673 )      (1,419 )      (72,301 ) 

Ending units

      1,211,682       395,694       6,447,892       11,326       424,190  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

54

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
PIMCO RAE
International
Value Portfolio
Class 3		   SAST SA
PIMCO VCP
Tactical
Balanced
Portfolio Class 1		   SAST SA
PIMCO VCP
Tactical
Balanced
Portfolio Class 3		   SAST SA
PineBridge
High-Yield Bond
Portfolio Class 1		   SAST SA
PineBridge
High-Yield Bond
Portfolio Class 2

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 9,635,968     $ 2,227     $ 33,569,722     $ 1,526,282     $ 338,824  

Mortality and expense risk and administrative charges

      (3,652,057 )      (270 )      (11,255,416 )      (362,099 )      (84,613 ) 

Net investment income (loss)

      5,983,911       1,957       22,314,306       1,164,183       254,211  

Net realized gain (loss)

      (4,765,128 )      (1,884 )      (22,693,246 )      (265,460 )      (109,519 ) 

Change in unrealized appreciation (depreciation) of investments

      33,515,620       5,279       81,623,842       2,301,177       579,800  

Increase (decrease) in net assets from operations

      34,734,403       5,352       81,244,902       3,199,900       724,492  

From contract transactions:

           

Payments received from contract owners

      1,280,519       —       6,650,360       134,413       576  

Payments for contract benefits or terminations

      (24,619,762 )      (4,912 )      (97,806,021 )      (2,770,368 )      (583,087 ) 

Transfers between sub-accounts (including fixed account), net

      (5,156,419 )      (210 )      4,637,508       21,862       (85,676 ) 

Contract maintenance charges

      (2,710,443 )      (1,027 )      (14,915,605 )      (7,165 )      (9,850 ) 

Adjustments to net assets allocated to contracts in payout period

      (694 )      —       196       (2,535 )      7,692  

Increase (decrease) in net assets from contract transactions

      (31,206,799 )      (6,149 )      (101,433,562 )      (2,623,793 )      (670,345 ) 

Increase (decrease) in net assets

      3,527,604       (797 )      (20,188,660 )      576,107       54,147  

Net assets at beginning of period

      240,717,919       50,314       849,522,148       24,237,406       5,432,276  

Net assets at end of period

    $ 244,245,523     $ 49,517     $ 829,333,488     $ 24,813,513     $ 5,486,423  

Beginning units

      18,942,487       4,214       65,633,474       699,806       162,532  

Units issued

      602,020       68       2,212,922       154,611       1,833  

Units redeemed

      (2,976,186 )      (558 )      (9,755,193 )      (228,043 )      (21,153 ) 

Ending units

      16,568,321       3,724       58,091,203       626,374       143,212  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 10,325,120     $ —     $ —     $ 1,478,639     $ 327,107  

Mortality and expense risk and administrative charges

      (4,085,819 )      (307 )      (12,828,093 )      (392,330 )      (92,005 ) 

Net investment income (loss)

      6,239,301       (307 )      (12,828,093 )      1,086,309       235,102  

Net realized gain (loss)

      (11,313,515 )      (1,477 )      (15,595,634 )      (763,125 )      (119,963 ) 

Capital gain distribution from mutual funds

      13,322,841       129       2,209,266       —       —  

Change in unrealized appreciation (depreciation) of investments

      (37,200,166 )      (10,058 )      (182,546,036 )      (3,663,793 )      (869,300 ) 

Increase (decrease) in net assets from operations

      (28,951,539 )      (11,713 )      (208,760,497 )      (3,340,609 )      (754,161 ) 

From contract transactions:

           

Payments received from contract owners

      2,122,689       —       12,439,267       182,222       54,861  

Payments for contract benefits or terminations

      (24,417,684 )      (4,939 )      (80,457,750 )      (2,632,048 )      (521,161 ) 

Transfers between sub-accounts (including fixed account), net

      (21,937,392 )      694       390,567       (824,008 )      (23,717 ) 

Contract maintenance charges

      (3,110,883 )      (955 )      (16,882,836 )      (7,572 )      (10,110 ) 

Adjustments to net assets allocated to contracts in payout period

      1,182       —       (390 )      4,175       (3,696 ) 

Increase (decrease) in net assets from contract transactions

      (47,342,088 )      (5,200 )      (84,511,142 )      (3,277,231 )      (503,823 ) 

Increase (decrease) in net assets

      (76,293,627 )      (16,913 )      (293,271,639 )      (6,617,840 )      (1,257,984 ) 

Net assets at beginning of period

      317,011,546       67,227       1,142,793,787       30,855,246       6,690,260  

Net assets at end of period

    $ 240,717,919     $ 50,314     $ 849,522,148     $ 24,237,406     $ 5,432,276  

Beginning units

      22,521,709       4,621       71,728,113       789,289       177,171  

Units issued

      1,429,974       72       3,462,477       132,708       7,198  

Units redeemed

      (5,009,196 )      (479 )      (9,557,116 )      (222,191 )      (21,837 ) 

Ending units

      18,942,487       4,214       65,633,474       699,806       162,532  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

55

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
PineBridge
High-Yield Bond
Portfolio Class 3		   SAST SA
Putnam
International
Growth and
Income Portfolio
Class 1		   SAST SA
Putnam
International
Growth and
Income Portfolio
Class 2		   SAST SA
Putnam
International
Growth and
Income Portfolio
Class 3		   SAST SA
Schroders VCP
Global Allocation
Portfolio Class 1

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 4,630,343     $ 482,775     $ 108,345     $ 1,742,569     $ 3,799  

Mortality and expense risk and administrative charges

      (1,119,939 )      (287,575 )      (71,332 )      (1,193,131 )      (1,184 ) 

Net investment income (loss)

      3,510,404       195,200       37,013       549,438       2,615  

Net realized gain (loss)

      (1,520,558 )      59,986       43,199       1,819,218       (1,446 ) 

Change in unrealized appreciation (depreciation) of investments

      7,903,020       2,810,574       659,915       9,874,586       32,828  

Increase (decrease) in net assets from operations

      9,892,866       3,065,760       740,127       12,243,242       33,997  

From contract transactions:

           

Payments received from contract owners

      2,552,173       111,257       1,087       2,229,238       —  

Payments for contract benefits or terminations

      (8,782,915 )      (1,759,201 )      (439,771 )      (8,285,771 )      (6,909 ) 

Transfers between sub-accounts (including fixed account), net

      590,138       631,470       (29,477 )      2,036,594       3,452  

Contract maintenance charges

      (696,051 )      (6,640 )      (5,902 )      (615,011 )      (3,217 ) 

Adjustments to net assets allocated to contracts in payout period

      (257 )      (529 )      (1,153 )      644       —  

Increase (decrease) in net assets from contract transactions

      (6,336,912 )      (1,023,643 )      (475,216 )      (4,634,306 )      (6,674 ) 

Increase (decrease) in net assets

      3,555,954       2,042,117       264,911       7,608,936       27,323  

Net assets at beginning of period

      74,369,353       17,761,505       4,475,062       72,860,894       231,134  

Net assets at end of period

    $ 77,925,307     $ 19,803,622     $ 4,739,973     $ 80,469,830     $ 258,457  

Beginning units

      3,631,385       965,129       249,286       4,830,759       21,109  

Units issued

      445,614       62,172       4,002       610,774       473  

Units redeemed

      (717,881 )      (109,884 )      (28,555 )      (769,069 )      (1,055 ) 

Ending units

      3,359,118       917,417       224,733       4,672,464       20,527  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 4,319,175     $ 316,562     $ 74,446     $ 1,162,404     $ 2,448  

Mortality and expense risk and administrative charges

      (1,190,214 )      (279,833 )      (68,750 )      (1,241,146 )      (1,205 ) 

Net investment income (loss)

      3,128,961       36,729       5,696       (78,742 )      1,243  

Net realized gain (loss)

      (1,933,231 )      (177,563 )      53,763       1,240,217       499  

Capital gain distribution from mutual funds

      —       880,348       226,567       3,869,279       32,901  

Change in unrealized appreciation (depreciation) of investments

      (11,371,685 )      (2,519,022 )      (669,289 )      (12,494,260 )      (89,027 ) 

Increase (decrease) in net assets from operations

      (10,175,955 )      (1,779,508 )      (383,263 )      (7,463,506 )      (54,384 ) 

From contract transactions:

           

Payments received from contract owners

      3,551,808       64,535       169,964       2,261,444       —  

Payments for contract benefits or terminations

      (8,840,623 )      (1,764,018 )      (353,689 )      (7,861,121 )      (4,785 ) 

Transfers between sub-accounts (including fixed account), net

      (1,293,390 )      (12,703 )      561,932       (5,023,854 )      3,564  

Contract maintenance charges

      (724,996 )      (6,817 )      (6,209 )      (604,697 )      (3,554 ) 

Adjustments to net assets allocated to contracts in payout period

      2,468       685       (61 )      (463 )      —  

Increase (decrease) in net assets from contract transactions

      (7,304,733 )      (1,718,318 )      371,937       (11,228,691 )      (4,775 ) 

Increase (decrease) in net assets

      (17,480,688 )      (3,497,826 )      (11,326 )      (18,692,197 )      (59,159 ) 

Net assets at beginning of period

      91,850,041       21,259,331       4,486,388       91,553,091       290,293  

Net assets at end of period

    $ 74,369,353     $ 17,761,505     $ 4,475,062     $ 72,860,894     $ 231,134  

Beginning units

      3,963,299       1,061,459       230,112       5,446,012       21,540  

Units issued

      708,428       44,628       58,556       743,924       769  

Units redeemed

      (1,040,342 )      (140,958 )      (39,382 )      (1,359,177 )      (1,200 ) 

Ending units

      3,631,385       965,129       249,286       4,830,759       21,109  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

56

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
Schroders VCP
Global Allocation
Portfolio Class 3		   SAST SA Small
Cap Index
Portfolio Class 1		   SAST SA Small
Cap Index
Portfolio Class 3		   SAST SA T.
Rowe Price
Asset Allocation
Growth Portfolio
Class 1		   SAST SA T.
Rowe Price
Asset Allocation
Growth Portfolio
Class 3

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 4,919,708     $ 5,032     $ 367,026     $ 5,720     $ 3,622,699  

Mortality and expense risk and administrative charges

      (5,226,026 )      (2,630 )      (580,240 )      (2,445 )      (5,116,956 ) 

Net investment income (loss)

      (306,318 )      2,402       (213,214 )      3,275       (1,494,257 ) 

Net realized gain (loss)

      (10,493,858 )      (2,713 )      349,385       4,631       5,376,145  

Capital gain distribution from mutual funds

      —       2,341       215,475       3,896       3,100,972  

Change in unrealized appreciation (depreciation) of investments

      61,314,179       73,288       6,150,997       72,662       58,552,437  

Increase (decrease) in net assets from operations

      50,514,003       75,318       6,502,643       84,464       65,535,297  

From contract transactions:

           

Payments received from contract owners

      4,334,663       —       6,361,236       110,000       21,676,668  

Payments for contract benefits or terminations

      (41,635,015 )      (1,124 )      (2,031,446 )      (3,323 )      (20,748,536 ) 

Transfers between sub-accounts (including fixed account), net

      (1,825,714 )      114,413       2,258,870       (14,135 )      (4,039,838 ) 

Contract maintenance charges

      (7,077,034 )      (4,100 )      (675,587 )      (6,351 )      (7,005,340 ) 

Increase (decrease) in net assets from contract transactions

      (46,202,906 )      109,189       5,913,073       86,191       (10,117,046 ) 

Increase (decrease) in net assets

      4,311,097       184,507       12,415,716       170,655       55,418,251  

Net assets at beginning of period

      393,035,155       407,239       39,818,011       373,044       376,668,687  

Net assets at end of period

    $ 397,346,252     $ 591,746     $ 52,233,727     $ 543,699     $ 432,086,938  

Beginning units

      34,956,593       35,358       3,556,335       28,195       30,037,106  

Units issued

      1,128,491       10,137       1,084,922       8,167       2,541,172  

Units redeemed

      (5,012,736 )      (1,124 )      (567,392 )      (1,736 )      (3,282,061 ) 

Ending units

      31,072,348       44,371       4,073,865       34,626       29,296,217  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 2,985,878     $ 2,966     $ 209,793     $ 2,251     $ 1,376,629  

Mortality and expense risk and administrative charges

      (5,816,169 )      (2,256 )      (480,572 )      (1,748 )      (4,863,464 ) 

Net investment income (loss)

      (2,830,291 )      710       (270,779 )      503       (3,486,835 ) 

Net realized gain (loss)

      (2,844,313 )      (10,279 )      507,076       1,475       3,060,164  

Capital gain distribution from mutual funds

      57,846,069       41,385       3,987,162       27,312       27,278,503  

Change in unrealized appreciation (depreciation) of investments

      (154,478,363 )      (124,726 )      (13,701,663 )      (99,914 )      (111,209,051 ) 

Increase (decrease) in net assets from operations

      (102,306,898 )      (92,910 )      (9,478,204 )      (70,624 )      (84,357,219 ) 

From contract transactions:

           

Payments received from contract owners

      6,105,981       93,447       10,343,376       70,107       55,171,794  

Payments for contract benefits or terminations

      (33,308,799 )      (10,836 )      (1,192,151 )      (653 )      (17,080,450 ) 

Transfers between sub-accounts (including fixed account), net

      3,166,334       (184,627 )      1,556,679       11,478       6,882,203  

Contract maintenance charges

      (7,912,148 )      (2,963 )      (569,119 )      (5,895 )      (6,939,931 ) 

Adjustments to net assets allocated to contracts in payout period

      484       —       —       —       —  

Increase (decrease) in net assets from contract transactions

      (31,948,148 )      (104,979 )      10,138,785       75,037       38,033,616  

Increase (decrease) in net assets

      (134,255,046 )      (197,889 )      660,581       4,413       (46,323,603 ) 

Net assets at beginning of period

      527,290,201       605,128       39,157,430       368,631       422,992,290  

Net assets at end of period

    $ 393,035,155     $ 407,239     $ 39,818,011     $ 373,044     $ 376,668,687  

Beginning units

      37,680,947       41,399       2,729,065       22,699       27,209,293  

Units issued

      2,074,445       11,135       1,369,387       6,168       5,746,963  

Units redeemed

      (4,798,799 )      (17,176 )      (542,117 )      (672 )      (2,919,150 ) 

Ending units

      34,956,593       35,358       3,556,335       28,195       30,037,106  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

57

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA T.
Rowe Price VCP
Balanced
Portfolio Class 1		   SAST SA T.
Rowe Price VCP
Balanced
Portfolio Class 3		   SAST SA VCP
Dynamic
Allocation
Portfolio Class 1		   SAST SA VCP
Dynamic
Allocation
Portfolio Class 3		   SAST SA VCP
Dynamic
Strategy
Portfolio Class 1

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 4,545     $ 18,487,335     $ 12,278     $ 128,454,870     $ 19,345  

Mortality and expense risk and administrative charges

      (1,276 )      (14,964,875 )      (2,485 )      (83,690,941 )      (3,143 ) 

Net investment income (loss)

      3,269       3,522,460       9,793       44,763,929       16,202  

Net realized gain (loss)

      (5,231 )      (10,310,748 )      (5,641 )      (179,880,301 )      (11,512 ) 

Capital gain distribution from mutual funds

      —       —       22,071       260,941,352       61,122  

Change in unrealized appreciation (depreciation) of investments

      37,555       163,768,746       32,174       547,380,746       9,869  

Increase (decrease) in net assets from operations

      35,593       156,980,458       58,397       673,205,726       75,681  

From contract transactions:

           

Payments received from contract owners

      —       22,301,441       13,000       36,955,418       13,500  

Payments for contract benefits or terminations

      (12,325 )      (113,337,998 )      (4,380 )      (662,514,096 )      (28,111 ) 

Transfers between sub-accounts (including fixed account), net

      (3,396 )      1,800,131       40,655       (49,318,028 )      8,769  

Contract maintenance charges

      (4,412 )      (20,126,854 )      (8,057 )      (109,632,168 )      (11,821 ) 

Adjustments to net assets allocated to contracts in payout period

      —       215       —       7,155       —  

Increase (decrease) in net assets from contract transactions

      (20,133 )      (109,363,065 )      41,218       (784,501,719 )      (17,663 ) 

Increase (decrease) in net assets

      15,460       47,617,393       99,615       (111,295,993 )      58,018  

Net assets at beginning of period

      233,339       1,119,730,799       418,712       6,104,053,442       660,713  

Net assets at end of period

    $ 248,799     $ 1,167,348,192     $ 518,327     $ 5,992,757,449     $ 718,731  

Beginning units

      18,230       85,626,716       31,673       399,592,820       50,243  

Units issued

      204       4,530,895       3,938       4,961,689       1,746  

Units redeemed

      (1,677 )      (12,378,623 )      (1,020 )      (54,015,513 )      (3,074 ) 

Ending units

      16,757       77,778,988       34,591       350,538,996       48,915  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 2,761     $ 9,775,851     $ 12,428     $ 163,491,546     $ 17,904  

Mortality and expense risk and administrative charges

      (1,367 )      (16,106,251 )      (2,426 )      (96,523,118 )      (3,267 ) 

Net investment income (loss)

      1,394       (6,330,400 )      10,002       66,968,428       14,637  

Net realized gain (loss)

      (2,136 )      5,505,587       (2,799 )      (47,523,154 )      (5,375 ) 

Capital gain distribution from mutual funds

      31,768       152,913,666       37,123       551,579,947       40,313  

Change in unrealized appreciation (depreciation) of investments

      (88,441 )      (437,276,582 )      (133,843 )      (2,056,828,438 )      (167,507 ) 

Increase (decrease) in net assets from operations

      (57,415 )      (285,187,729 )      (89,517 )      (1,485,803,217 )      (117,932 ) 

From contract transactions:

           

Payments received from contract owners

      —       45,826,505       —       69,993,735       —  

Payments for contract benefits or terminations

      (12,366 )      (83,854,076 )      (1,327 )      (697,037,704 )      (13,220 ) 

Transfers between sub-accounts (including fixed account), net

      3,507       28,541,007       3,427       (26,709,452 )      (4,197 ) 

Contract maintenance charges

      (4,325 )      (21,778,579 )      (8,312 )      (125,334,810 )      (12,668 ) 

Adjustments to net assets allocated to contracts in payout period

      —       475       —       36,677       —  

Increase (decrease) in net assets from contract transactions

      (13,184 )      (31,264,668 )      (6,212 )      (779,051,554 )      (30,085 ) 

Increase (decrease) in net assets

      (70,599 )      (316,452,397 )      (95,729 )      (2,264,854,771 )      (148,017 ) 

Net assets at beginning of period

      303,938       1,436,183,196       514,441       8,368,908,213       808,730  

Net assets at end of period

    $ 233,339     $ 1,119,730,799     $ 418,712     $ 6,104,053,442     $ 660,713  

Beginning units

      19,170       87,843,830       32,126       447,897,380       52,465  

Units issued

      707       8,664,584       395       14,802,601       538  

Units redeemed

      (1,647 )      (10,881,698 )      (848 )      (63,107,161 )      (2,760 ) 

Ending units

      18,230       85,626,716       31,673       399,592,820       50,243  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

58

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA VCP
Dynamic
Strategy
Portfolio Class 3		   SAST SA VCP
Index Allocation
Portfolio Class 1		   SAST SA VCP
Index Allocation
Portfolio Class 3		   SAST SA
Wellington
Capital
Appreciation
Portfolio Class 1		   SAST SA
Wellington
Capital
Appreciation
Portfolio Class 2

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 113,037,114     $ 6,142     $ 5,406,320     $ —     $ —  

Mortality and expense risk and administrative charges

      (64,775,672 )      (1,926 )      (5,008,379 )      (4,727,597 )      (658,510 ) 

Net investment income (loss)

      48,261,442       4,216       397,941       (4,727,597 )      (658,510 ) 

Net realized gain (loss)

      (69,305,999 )      (1,723 )      2,176,223       (18,033,395 )      (4,444,412 ) 

Capital gain distribution from mutual funds

      398,521,259       4,896       5,081,739       —       —  

Change in unrealized appreciation (depreciation) of investments

      86,729,346       52,331       45,569,502       122,273,626       18,304,926  

Increase (decrease) in net assets from operations

      464,206,048       59,720       53,225,405       99,512,634       13,202,004  

From contract transactions:

           

Payments received from contract owners

      20,739,742       133,647       23,862,651       1,770,102       278,868  

Payments for contract benefits or terminations

      (510,162,686 )      (5,926 )      (43,909,075 )      (31,220,367 )      (4,597,154 ) 

Transfers between sub-accounts (including fixed account), net

      (6,617,756 )      (2,583 )      4,510,104       (3,745,080 )      (1,200,768 ) 

Contract maintenance charges

      (85,457,131 )      (6,361 )      (6,991,129 )      (91,348 )      (60,369 ) 

Adjustments to net assets allocated to contracts in payout period

      403       —       —       71,309       62,330  

Increase (decrease) in net assets from contract transactions

      (581,497,428 )      118,777       (22,527,449 )      (33,215,384 )      (5,517,093 ) 

Increase (decrease) in net assets

      (117,291,380 )      178,497       30,697,956       66,297,250       7,684,911  

Net assets at beginning of period

      4,776,685,400       348,849       378,580,493       277,530,257       37,303,158  

Net assets at end of period

    $ 4,659,394,020     $ 527,346     $ 409,278,449     $ 343,827,507     $ 44,988,069  

Beginning units

      317,750,193       29,243       33,439,491       1,633,223       231,890  

Units issued

      5,207,609       10,186       3,584,018       49,316       1,942  

Units redeemed

      (42,534,831 )      (1,256 )      (5,429,992 )      (203,965 )      (30,346 ) 

Ending units

      280,422,971       38,173       31,593,517       1,478,574       203,486  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 116,416,523     $ —     $ —     $ —     $ —  

Mortality and expense risk and administrative charges

      (74,793,970 )      (1,783 )      (5,076,506 )      (5,056,759 )      (708,888 ) 

Net investment income (loss)

      41,622,553       (1,783 )      (5,076,506 )      (5,056,759 )      (708,888 ) 

Net realized gain (loss)

      3,661,364       (1,549 )      372,197       (7,120,684 )      (2,199,720 ) 

Capital gain distribution from mutual funds

      297,224,895       1,380       1,486,857       88,285,310       12,955,484  

Change in unrealized appreciation (depreciation) of investments

      (1,324,143,318 )      (63,311 )      (78,822,313 )      (254,412,005 )      (34,075,682 ) 

Increase (decrease) in net assets from operations

      (981,634,506 )      (65,263 )      (82,039,765 )      (178,304,138 )      (24,028,806 ) 

From contract transactions:

           

Payments received from contract owners

      29,656,723       78,000       31,779,937       1,500,625       361,872  

Payments for contract benefits or terminations

      (522,446,772 )      (3,164 )      (23,486,876 )      (32,259,691 )      (4,446,087 ) 

Transfers between sub-accounts (including fixed account), net

      (111,263,887 )      350       8,740,914       (11,815,522 )      (555,191 ) 

Contract maintenance charges

      (98,008,514 )      (6,122 )      (7,251,004 )      (90,494 )      (60,282 ) 

Adjustments to net assets allocated to contracts in payout period

      13,470       —       —       (40,633 )      (63,564 ) 

Increase (decrease) in net assets from contract transactions

      (702,048,980 )      69,064       9,782,971       (42,705,715 )      (4,763,252 ) 

Increase (decrease) in net assets

      (1,683,683,486 )      3,801       (72,256,794 )      (221,009,853 )      (28,792,058 ) 

Net assets at beginning of period

      6,460,368,886       345,048       450,837,287       498,540,110       66,095,216  

Net assets at end of period

    $ 4,776,685,400     $ 348,849     $ 378,580,493     $ 277,530,257     $ 37,303,158  

Beginning units

      362,391,923       23,971       32,666,989       1,825,027       257,219  

Units issued

      7,218,449       6,351       4,589,160       72,944       11,108  

Units redeemed

      (51,860,179 )      (1,079 )      (3,816,658 )      (264,748 )      (36,437 ) 

Ending units

      317,750,193       29,243       33,439,491       1,633,223       231,890  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

59

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
Wellington
Capital
Appreciation
Portfolio Class 3		   SAST SA
Wellington
Government and
Quality Bond
Portfolio Class 1		   SAST SA
Wellington
Government and
Quality Bond
Portfolio Class 2		   SAST SA
Wellington
Government and
Quality Bond
Portfolio Class 3		   SAST SA
Wellington
Strategic Multi-
Asset Portfolio
Class 1

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ —     $ 887,241     $ 272,581     $ 6,847,455     $ 166,064  

Mortality and expense risk and administrative charges

      (12,374,788 )      (624,120 )      (213,823 )      (5,209,442 )      (155,751 ) 

Net investment income (loss)

      (12,374,788 )      263,121       58,758       1,638,013       10,313  

Net realized gain (loss)

      (164,454,763 )      (1,152,376 )      (288,851 )      (8,764,295 )      (182,965 ) 

Change in unrealized appreciation (depreciation) of investments

      464,018,713       2,290,785       676,652       17,930,183       1,599,399  

Increase (decrease) in net assets from operations

      287,189,162       1,401,530       446,559       10,803,901       1,426,747  

From contract transactions:

           

Payments received from contract owners

      70,033,911       127,479       176,122       10,072,797       110,019  

Payments for contract benefits or terminations

      (64,129,632 )      (5,480,633 )      (1,621,902 )      (39,671,592 )      (1,727,216 ) 

Transfers between sub-accounts (including fixed account), net

      (74,439,197 )      248,107       132,341       28,551,630       (10,844 ) 

Contract maintenance charges

      (12,136,561 )      (23,066 )      (29,979 )      (4,377,176 )      (7,920 ) 

Adjustments to net assets allocated to contracts in payout period

      (1,857 )      (1,100 )      1,984       (1,069 )      (223 ) 

Increase (decrease) in net assets from contract transactions

      (80,673,336 )      (5,129,213 )      (1,341,434 )      (5,425,410 )      (1,636,184 ) 

Increase (decrease) in net assets

      206,515,826       (3,727,683 )      (894,875 )      5,378,491       (209,437 ) 

Net assets at beginning of period

      787,808,448       44,349,510       14,605,323       355,164,799       11,268,459  

Net assets at end of period

    $ 994,324,274     $ 40,621,827     $ 13,710,448     $ 360,543,290     $ 11,059,022  

Beginning units

      16,254,234       2,096,060       777,508       26,815,037       156,556  

Units issued

      2,157,987       111,909       37,217       3,937,367       11,318  

Units redeemed

      (3,233,637 )      (352,312 )      (108,406 )      (4,204,142 )      (25,368 ) 

Ending units

      15,178,584       1,855,657       706,319       26,548,262       142,506  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ —     $ 605,448     $ 178,356     $ 3,645,721     $ 105,747  

Mortality and expense risk and administrative charges

      (11,494,553 )      (726,843 )      (259,815 )      (5,770,243 )      (171,478 ) 

Net investment income (loss)

      (11,494,553 )      (121,395 )      (81,459 )      (2,124,522 )      (65,731 ) 

Net realized gain (loss)

      (28,564,096 )      (741,673 )      (232,866 )      (7,801,647 )      60,588  

Capital gain distribution from mutual funds

      281,434,291       729,571       251,617       5,789,891       1,156,052  

Change in unrealized appreciation (depreciation) of investments

      (646,341,396 )      (7,937,505 )      (2,766,429 )      (62,159,489 )      (3,837,464 ) 

Increase (decrease) in net assets from operations

      (404,965,754 )      (8,071,002 )      (2,829,137 )      (66,295,767 )      (2,686,555 ) 

From contract transactions:

           

Payments received from contract owners

      120,589,822       541,763       165,645       13,386,205       37,021  

Payments for contract benefits or terminations

      (54,943,476 )      (4,901,176 )      (1,756,545 )      (39,238,683 )      (1,205,376 ) 

Transfers between sub-accounts (including fixed account), net

      87,160,986       177,814       (699,388 )      (14,442,099 )      (38,535 ) 

Contract maintenance charges

      (11,019,588 )      (19,879 )      (34,285 )      (4,702,924 )      (5,486 ) 

Adjustments to net assets allocated to contracts in payout period

      (15,591 )      24,120       (318 )      (806 )      5,955  

Increase (decrease) in net assets from contract transactions

      141,772,153       (4,177,358 )      (2,324,891 )      (44,998,307 )      (1,206,421 ) 

Increase (decrease) in net assets

      (263,193,601 )      (12,248,360 )      (5,154,028 )      (111,294,074 )      (3,892,976 ) 

Net assets at beginning of period

      1,051,002,049       56,597,870       19,759,351       466,458,873       15,161,435  

Net assets at end of period

    $ 787,808,448     $ 44,349,510     $ 14,605,323     $ 355,164,799     $ 11,268,459  

Beginning units

      13,086,656       2,247,157       895,596       29,835,161       171,355  

Units issued

      5,346,852       167,654       23,241       3,517,204       2,153  

Units redeemed

      (2,179,274 )      (318,751 )      (141,329 )      (6,537,328 )      (16,952 ) 

Ending units

      16,254,234       2,096,060       777,508       26,815,037       156,556  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

60

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

           
      SAST SA
Wellington
Strategic Multi-
Asset Portfolio
Class 3		   VALIC Company
I International
Equities Index
Fund		   VALIC Company
I International
Socially
Responsible
Fund		   VALIC Company
I Mid Cap Index
Fund		   VALIC Company
I Nasdaq-100
Index Fund

For the Year Ended December 31, 2023

           

From operations:

           

Dividends

    $ 1,457,435     $ 102,903     $ 16,520     $ 44,436     $ 10,575  

Mortality and expense risk and administrative charges

      (1,412,644 )      (46,491 )      (10,930 )      (42,118 )      (42,556 ) 

Net investment income (loss)

      44,791       56,412       5,590       2,318       (31,981 ) 

Net realized gain (loss)

      (276,963 )      40,501       (2,016 )      (43,592 )      330,369  

Capital gain distribution from mutual funds

      —       —       14,963       461,840       437,973  

Change in unrealized appreciation (depreciation) of investments

      13,952,065       512,843       135,858       86,328       752,121  

Increase (decrease) in net assets from operations

      13,719,893       609,756       154,395       506,894       1,488,482  

From contract transactions:

           

Payments received from contract owners

      9,071,840       6,000       —       2,500       —  

Payments for contract benefits or terminations

      (6,858,585 )      (154,101 )      (9,787 )      (330,266 )      (556,824 ) 

Transfers between sub-accounts (including fixed account), net

      727,530       15,135       (2,155 )      25,174       (348,593 ) 

Contract maintenance charges

      (1,894,772 )      (103 )      (6 )      (195 )      (188 ) 

Adjustments to net assets allocated to contracts in payout period

      206       —       —       —       —  

Increase (decrease) in net assets from contract transactions

      1,046,219       (133,069 )      (11,948 )      (302,787 )      (905,605 ) 

Increase (decrease) in net assets

      14,766,112       476,687       142,447       204,107       582,877  

Net assets at beginning of period

      102,395,193       3,924,544       912,078       3,712,402       3,160,960  

Net assets at end of period

    $ 117,161,305     $ 4,401,231     $ 1,054,525     $ 3,916,509     $ 3,743,837  

Beginning units

      8,371,316       338,654       63,789       209,790       127,395  

Units issued

      1,191,920       4,305       103       5,398       239  

Units redeemed

      (1,113,795 )      (15,394 )      (898 )      (21,905 )      (28,318 ) 

Ending units

      8,449,441       327,565       62,994       193,283       99,316  

For the Year Ended December 31, 2022

           

From operations:

           

Dividends

    $ 689,586     $ 127,975     $ 39,317     $ 56,667     $ 9,065  

Mortality and expense risk and administrative charges

      (1,309,037 )      (47,038 )      (11,813 )      (49,822 )      (43,805 ) 

Net investment income (loss)

      (619,451 )      80,937       27,504       6,845       (34,740 ) 

Net realized gain (loss)

      (32,898 )      33,996       (42,499 )      (12,700 )      108,960  

Capital gain distribution from mutual funds

      10,098,498       —       43,565       360,210       373,200  

Change in unrealized appreciation (depreciation) of investments

      (30,644,641 )      (878,014 )      (264,946 )      (1,072,918 )      (2,026,821 ) 

Increase (decrease) in net assets from operations

      (21,198,492 )      (763,081 )      (236,376 )      (718,563 )      (1,579,401 ) 

From contract transactions:

           

Payments received from contract owners

      14,739,628       13,971       —       7,630       8,289  

Payments for contract benefits or terminations

      (4,307,969 )      (142,787 )      (67,005 )      (451,600 )      (259,287 ) 

Transfers between sub-accounts (including fixed account), net

      1,629,443       (109,271 )      (63,638 )      (128,544 )      290,198  

Contract maintenance charges

      (1,829,954 )      (108 )      (8 )      (147 )      (156 ) 

Adjustments to net assets allocated to contracts in payout period

      698       —       —       —       —  

Increase (decrease) in net assets from contract transactions

      10,231,846       (238,195 )      (130,651 )      (572,661 )      39,044  

Increase (decrease) in net assets

      (10,966,646 )      (1,001,276 )      (367,027 )      (1,291,224 )      (1,540,357 ) 

Net assets at beginning of period

      113,361,839       4,925,820       1,279,105       5,003,626       4,701,317  

Net assets at end of period

    $ 102,395,193     $ 3,924,544     $ 912,078     $ 3,712,402     $ 3,160,960  

Beginning units

      7,575,115       359,492       74,163       243,905       126,248  

Units issued

      1,748,427       3,117       366       1,244       12,205  

Units redeemed

      (952,226 )      (23,955 )      (10,740 )      (35,359 )      (11,058 ) 

Ending units

      8,371,316       338,654       63,789       209,790       127,395  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

61

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS

 

     
      VALIC Company
I Small Cap
Index Fund		  

VALIC Company
I Stock Index

Fund

For the Year Ended December 31, 2023

     

From operations:

     

Dividends

    $ 39,285     $ 143,909  

Mortality and expense risk and administrative charges

      (31,363 )      (126,870 ) 

Net investment income (loss)

      7,922       17,039  

Net realized gain (loss)

      (138,736 )      332,349  

Capital gain distribution from mutual funds

      602,655       784,053  

Change in unrealized appreciation (depreciation) of investments

      (85,782 )      1,347,808  

Increase (decrease) in net assets from operations

      386,059       2,481,249  

From contract transactions:

     

Payments received from contract owners

      1,200       2,900  

Payments for contract benefits or terminations

      (217,968 )      (722,409 ) 

Transfers between sub-accounts (including fixed account), net

      (12,703 )      (651,228 ) 

Contract maintenance charges

      (114 )      (334 ) 

Increase (decrease) in net assets from contract transactions

      (229,585 )      (1,371,071 ) 

Increase (decrease) in net assets

      156,474       1,110,178  

Net assets at beginning of period

      2,741,189       10,956,779  

Net assets at end of period

    $ 2,897,663     $ 12,066,957  

Beginning units

      176,269       544,936  

Units issued

      4,215       556  

Units redeemed

      (18,051 )      (62,969 ) 

Ending units

      162,433       482,523  

For the Year Ended December 31, 2022

     

From operations:

     

Dividends

    $ 23,259     $ 150,685  

Mortality and expense risk and administrative charges

      (37,404 )      (137,771 ) 

Net investment income (loss)

      (14,145 )      12,914  

Net realized gain (loss)

      (93,577 )      368,026  

Capital gain distribution from mutual funds

      318,960       1,035,536  

Change in unrealized appreciation (depreciation) of investments

      (1,028,620 )      (4,192,892 ) 

Increase (decrease) in net assets from operations

      (817,382 )      (2,776,416 ) 

From contract transactions:

     

Payments received from contract owners

      10,908       93,608  

Payments for contract benefits or terminations

      (347,582 )      (1,285,858 ) 

Transfers between sub-accounts (including fixed account), net

      221,615       59,753  

Contract maintenance charges

      (119 )      (317 ) 

Increase (decrease) in net assets from contract transactions

      (115,178 )      (1,132,814 ) 

Increase (decrease) in net assets

      (932,560 )      (3,909,230 ) 

Net assets at beginning of period

      3,673,749       14,866,009  

Net assets at end of period

    $ 2,741,189     $ 10,956,779  

Beginning units

      187,712       598,532  

Units issued

      15,459       12,590  

Units redeemed

      (26,902 )      (66,186 ) 

Ending units

      176,269       544,936  

The accompanying Notes to Financial Statements are an integral part of this statement.

 

 

62

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS

 

1.

Organization

Variable Separate Account (“the Separate Account”) is a segregated investment account established by American General Life Insurance Company (“AGL”) to receive and invest premium payments from variable annuity contracts issued by AGL. AGL is a wholly owned subsidiary of AGC Life Insurance Company (“AGC Life”), which is wholly owned by Corebridge Life Holdings, Inc. (formerly known as AIG Life Holdings, Inc.) (“Corebridge Life Holdings”). Corebridge Life Holdings is wholly owned by Corebridge Financial, Inc. (“Corebridge”), which American International Group, Inc. (“AIG”) owns 52.2% of their outstanding common stock as of December 31, 2023. AIG is a holding company, which through its subsidiaries provides a wide range of property casualty insurance, life insurance, retirement products and other financial services to commercial and individual customers in more than 190 countries and jurisdictions. The term “AIG” means American International Group, Inc. and not any of AIG’s consolidated subsidiaries.

The Separate Account includes the following variable annuity products:

 

American Pathway II

    Polaris Choice IV

Anchor Advisor

    Polaris II

ICAP II

    Polaris II Platinum Series

Polaris

    Polaris Platinum

Polaris Advantage

    Polaris Platinum II

Polaris Advantage II

    Polaris Platinum III

Polaris Advisor

    Polaris Preferred Solution

Polaris Advisor III

    Polaris Protector

Polaris Advisory

    Polaris Retirement Protector

Polaris Advisory Income

    Polaris Select Investor

PolarisAmerica

    Vista Capital Advantage

Polaris Choice

    WM Diversified Strategies

Polaris Choice II

    WM Diversified Strategies III

Polaris Choice III

   

The Separate Account contracts are sold through AGL’s affiliated broker-dealers, independent broker-dealers, full-service securities firms, and financial institutions. The distributor of the Separate Account is Corebridge Capital Services, Inc., formerly known as AIG Capital Services, Inc., an affiliate of AGL. No underwriting fees are paid in connection with the distribution of these contracts.

Principal Funds Distributor, Inc. distributes WM Diversified Strategies and WM Diversified Strategies III contracts. No underwriting fees are paid in connection with the distribution of these contracts.

The Separate Account is registered with the Securities and Exchange Commission as a Unit Investment Trust under the Investment Company Act of 1940, as amended. The Separate Account consists of various sub-accounts. Each sub-account invests all its investible assets in a corresponding eligible mutual fund, which is registered under the 1940 Act as an open-ended management investment company. The names in bold in the table below are the diversified, open-ended management investment companies and the names below them are the names of the sub-accounts/corresponding eligible mutual funds. Collectively, all of the mutual funds are referred to as “Funds” throughout these financial statements.

For each sub-account, the financial statements are comprised of a Statement of Assets and Liabilities, including a Schedule of Portfolio Investments, as of December 31, 2023 and related Statements of Operations and Changes in Net Assets for each of the years in the period then ended.

 

   

American Funds Insurance Series (American Funds IS)

   

American Funds IS American High-Income Trust Class 3

    American Funds IS Growth Fund Class 3

American Funds IS Asset Allocation Fund Class 2

    American Funds IS Growth-Income Fund Class 2

American Funds IS Asset Allocation Fund Class 3

    American Funds IS Growth-Income Fund Class 3

American Funds IS Capital Income Builder Class 4

    American Funds IS International Fund Class 3

American Funds IS Global Growth Fund Class 2

    American Funds IS U.S. Government Securities Fund Class 3

American Funds IS Growth Fund Class 2

    American Funds IS Ultra-Short Bond Fund Class 3

BlackRock Variable Series Funds, Inc. (BlackRock)

   

BlackRock 60/40 Target Allocation ETF V.I. Fund Class III

    BlackRock Global Allocation V.I. Fund Class III

 

 

63

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VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

Columbia Funds VIT Variable Series Trust (Columbia VP)

   

Columbia VP Dividend Opportunity Fund Class 1

    Columbia VP Overseas Core Fund Class 2

Columbia VP Emerging Markets Bond Fund Class 2

    Columbia VP Select Mid Cap Growth Opportunity Fund Class 1

Columbia VP Income Opportunities Fund Class 1

    Columbia VP Small Company Growth Fund Class 1

Columbia VP Large Cap Growth Fund Class 1

    CTIVP® Principal Blue Chip Growth Fund Class 1

Columbia VP Limited Duration Credit Fund Class 2

     

Delaware Ivy Variable Insurance Portfolios (Delaware Ivy VIP)

   

Delaware Ivy VIP Asset Strategy Class II

     

Franklin Templeton Variable Insurance Products Trust (FTVIP)

   

FTVIP Franklin Allocation VIP Fund Class 1

    FTVIP Franklin Income VIP Fund Class 2

FTVIP Franklin Allocation VIP Fund Class 2

    FTVIP Franklin Strategic Income VIP Fund Class 2

FTVIP Franklin Income VIP Fund Class 1

     

Goldman Sachs Variable Insurance Trust (Goldman Sachs VIT)

   

Goldman Sachs VIT Government Money Market Fund Institutional Shares

    Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Advisor Shares

Goldman Sachs VIT Government Money Market Fund Service Shares

    Goldman Sachs VIT Trend Driven Allocation Fund Service Shares

Invesco Variable Insurance Funds (Invesco V.I.)

   

Invesco V.I. American Franchise Fund Series I

    Invesco V.I. Comstock Fund Series II

Invesco V.I. American Franchise Fund Series II

    Invesco V.I. Growth and Income Fund Series I

Invesco V.I. Balanced-Risk Allocation Fund Series II

    Invesco V.I. Growth and Income Fund Series II

Invesco V.I. Comstock Fund Series I

     

Lord Abbett Series Fund, Inc. (Lord Abbett)

   

Lord Abbett Bond Debenture Portfolio Class VC

    Lord Abbett Mid Cap Stock Portfolio Class VC

Lord Abbett Fundamental Equity Portfolio Class VC

    Lord Abbett Short Duration Income Portfolio Class VC

Lord Abbett Growth and Income Portfolio Class VC

     

Morgan Stanley Variable Insurance Fund, Inc. (Morgan Stanley VIF)

Morgan Stanley VIF Global Infrastructure Portfolio Class II

     

Neuberger Berman Advisers Management Trust (Neuberger Berman AMT)

Neuberger Berman AMT US Equity Index PutWrite Strategy Portfolio Class S

PIMCO Variable Insurance Trust (PIMCO)

   

PIMCO All Asset Portfolio Advisor Class

    PIMCO Emerging Markets Bond Portfolio Institutional Class(b)

PIMCO Dynamic Bond Portfolio Advisor Class

    PIMCO Total Return Portfolio Advisor Class

PIMCO Emerging Markets Bond Portfolio Advisor Class

    PIMCO Total Return Portfolio Institutional Class

Principal Variable Contracts Funds, Inc. (PVC)

   

PVC Core Plus Bond Account Class 1

    PVC SAM Balanced Portfolio Class 2

PVC Diversified International Account Class 1

    PVC SAM Conservative Balanced Portfolio Class 1

PVC Equity Income Account Class 1

    PVC SAM Conservative Balanced Portfolio Class 2

PVC Equity Income Account Class 2

    PVC SAM Conservative Growth Portfolio Class 1

PVC Government & High Quality Bond Account Class 1

    PVC SAM Conservative Growth Portfolio Class 2

PVC Large Cap Growth Account I Class 1

    PVC SAM Flexible Income Portfolio Class 1

PVC MidCap Account Class 1

    PVC SAM Flexible Income Portfolio Class 2

PVC MidCap Account Class 2

    PVC SAM Strategic Growth Portfolio Class 1

PVC Principal Capital Appreciation Account Class 1

    PVC SAM Strategic Growth Portfolio Class 2

PVC Principal Capital Appreciation Account Class 2

    PVC Short-Term Income Account Class 1

PVC Real Estate Securities Account Class 1

    PVC SmallCap Account Class 1

PVC Real Estate Securities Account Class 2

    PVC SmallCap Account Class 2

PVC SAM Balanced Portfolio Class 1

     

 

 

64

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

Seasons Series Trust (SST)(a)

   

SST SA Allocation Balanced Portfolio Class 1

    SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3

SST SA Allocation Balanced Portfolio Class 3

    SST SA Multi-Managed International Equity Portfolio Class 3

SST SA Allocation Growth Portfolio Class 1

    SST SA Multi-Managed Large Cap Growth Portfolio Class 3

SST SA Allocation Growth Portfolio Class 3

    SST SA Multi-Managed Large Cap Value Portfolio Class 3

SST SA Allocation Moderate Growth Portfolio Class 1

    SST SA Multi-Managed Mid Cap Growth Portfolio Class 3

SST SA Allocation Moderate Growth Portfolio Class 3

    SST SA Multi-Managed Mid Cap Value Portfolio Class 3

SST SA Allocation Moderate Portfolio Class 1

    SST SA Multi-Managed Small Cap Portfolio Class 3

SST SA Allocation Moderate Portfolio Class 3

    SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 1

SST SA American Century Inflation Protection Portfolio Class 1

    SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 3

SST SA American Century Inflation Protection Portfolio Class 3

    SST SA T. Rowe Price Growth Stock Portfolio Class 3

SST SA Columbia Focused Value Portfolio Class 3

     

SunAmerica Series Trust (SAST)(a)

   

SAST SA AB Growth Portfolio Class 1

    SAST SA JPMorgan Diversified Balanced Portfolio Class 1

SAST SA AB Growth Portfolio Class 2

    SAST SA JPMorgan Diversified Balanced Portfolio Class 2

SAST SA AB Growth Portfolio Class 3

    SAST SA JPMorgan Diversified Balanced Portfolio Class 3

SAST SA AB Small & Mid Cap Value Portfolio Class 1

    SAST SA JPMorgan Emerging Markets Portfolio Class 1

SAST SA AB Small & Mid Cap Value Portfolio Class 2

    SAST SA JPMorgan Emerging Markets Portfolio Class 2

SAST SA AB Small & Mid Cap Value Portfolio Class 3

    SAST SA JPMorgan Emerging Markets Portfolio Class 3

SAST SA American Funds Asset Allocation Portfolio Class 1

    SAST SA JPMorgan Equity-Income Portfolio Class 1

SAST SA American Funds Asset Allocation Portfolio Class 3

    SAST SA JPMorgan Equity-Income Portfolio Class 2

SAST SA American Funds Global Growth Portfolio Class 1

    SAST SA JPMorgan Equity-Income Portfolio Class 3

SAST SA American Funds Global Growth Portfolio Class 3

    SAST SA JPMorgan Global Equities Portfolio Class 1

SAST SA American Funds Growth Portfolio Class 1

    SAST SA JPMorgan Global Equities Portfolio Class 2

SAST SA American Funds Growth Portfolio Class 3

    SAST SA JPMorgan Global Equities Portfolio Class 3

SAST SA American Funds Growth-Income Portfolio Class 1

    SAST SA JPMorgan Large Cap Core Portfolio Class 1(d)

SAST SA American Funds Growth-Income Portfolio Class 3

    SAST SA JPMorgan Large Cap Core Portfolio Class 2(d)

SAST SA American Funds VCP Managed Allocation Portfolio Class 1

    SAST SA JPMorgan Large Cap Core Portfolio Class 3(d)

SAST SA American Funds VCP Managed Allocation Portfolio Class 3

    SAST SA JPMorgan MFS Core Bond Portfolio Class 1

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 1

    SAST SA JPMorgan MFS Core Bond Portfolio Class 2

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 3

    SAST SA JPMorgan MFS Core Bond Portfolio Class 3

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 1

    SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 3

    SAST SA JPMorgan Mid-Cap Growth Portfolio Class 2

SAST SA DFA Ultra Short Bond Portfolio Class 1

    SAST SA JPMorgan Mid-Cap Growth Portfolio Class 3

SAST SA DFA Ultra Short Bond Portfolio Class 2

    SAST SA Large Cap Growth Index Portfolio Class 1

SAST SA DFA Ultra Short Bond Portfolio Class 3

    SAST SA Large Cap Growth Index Portfolio Class 3

SAST SA Emerging Markets Equity Index Portfolio Class 1

    SAST SA Large Cap Index Portfolio Class 1

SAST SA Emerging Markets Equity Index Portfolio Class 3

    SAST SA Large Cap Index Portfolio Class 3

SAST SA Federated Hermes Corporate Bond Portfolio Class 1

    SAST SA Large Cap Value Index Portfolio Class 1

SAST SA Federated Hermes Corporate Bond Portfolio Class 2

    SAST SA Large Cap Value Index Portfolio Class 3

SAST SA Federated Hermes Corporate Bond Portfolio Class 3

    SAST SA MFS Blue Chip Growth Portfolio Class 1

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 1

    SAST SA MFS Blue Chip Growth Portfolio Class 2

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 3

    SAST SA MFS Blue Chip Growth Portfolio Class 3

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1

    SAST SA MFS Massachusetts Investors Trust Portfolio Class 1

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 2

    SAST SA MFS Massachusetts Investors Trust Portfolio Class 2

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 3

    SAST SA MFS Massachusetts Investors Trust Portfolio Class 3

SAST SA Fixed Income Index Portfolio Class 1

    SAST SA MFS Total Return Portfolio Class 1

SAST SA Fixed Income Index Portfolio Class 3

    SAST SA MFS Total Return Portfolio Class 2

SAST SA Fixed Income Intermediate Index Portfolio Class 1

    SAST SA MFS Total Return Portfolio Class 3

SAST SA Fixed Income Intermediate Index Portfolio Class 3

    SAST SA Mid Cap Index Portfolio Class 1

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1

    SAST SA Mid Cap Index Portfolio Class 3

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 2

    SAST SA Morgan Stanley International Equities Portfolio Class 1

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 3

    SAST SA Morgan Stanley International Equities Portfolio Class 2

SAST SA Franklin Small Company Value Portfolio Class 1

    SAST SA Morgan Stanley International Equities Portfolio Class 3

SAST SA Franklin Small Company Value Portfolio Class 3

    SAST SA PIMCO RAE International Value Portfolio Class 1

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 1

    SAST SA PIMCO RAE International Value Portfolio Class 2

 

 

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VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

   

SunAmerica Series Trust (SAST)(a)

   

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 3

    SAST SA PIMCO RAE International Value Portfolio Class 3

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1

    SAST SA PIMCO VCP Tactical Balanced Portfolio Class 1

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 2

    SAST SA PIMCO VCP Tactical Balanced Portfolio Class 3

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 3

    SAST SA PineBridge High-Yield Bond Portfolio Class 1

SAST SA Franklin Tactical Opportunities Portfolio Class 1

    SAST SA PineBridge High-Yield Bond Portfolio Class 2

SAST SA Franklin Tactical Opportunities Portfolio Class 3

    SAST SA PineBridge High-Yield Bond Portfolio Class 3

SAST SA Global Index Allocation 60/40 Portfolio Class 1

    SAST SA Putnam International Growth and Income Portfolio Class 1

SAST SA Global Index Allocation 60/40 Portfolio Class 3

    SAST SA Putnam International Growth and Income Portfolio Class 2

SAST SA Global Index Allocation 75/25 Portfolio Class 1

    SAST SA Putnam International Growth and Income Portfolio Class 3

SAST SA Global Index Allocation 75/25 Portfolio Class 3

    SAST SA Schroders VCP Global Allocation Portfolio Class 1

SAST SA Global Index Allocation 90/10 Portfolio Class 1

    SAST SA Schroders VCP Global Allocation Portfolio Class 3

SAST SA Global Index Allocation 90/10 Portfolio Class 3

    SAST SA Small Cap Index Portfolio Class 1

SAST SA Goldman Sachs Global Bond Portfolio Class 1

    SAST SA Small Cap Index Portfolio Class 3

SAST SA Goldman Sachs Global Bond Portfolio Class 2

    SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 1

SAST SA Goldman Sachs Global Bond Portfolio Class 3

    SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 3

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 1

    SAST SA T. Rowe Price VCP Balanced Portfolio Class 1

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 3

    SAST SA T. Rowe Price VCP Balanced Portfolio Class 3

SAST SA Index Allocation 60/40 Portfolio Class 1

    SAST SA VCP Dynamic Allocation Portfolio Class 1

SAST SA Index Allocation 60/40 Portfolio Class 3

    SAST SA VCP Dynamic Allocation Portfolio Class 3

SAST SA Index Allocation 80/20 Portfolio Class 1

    SAST SA VCP Dynamic Strategy Portfolio Class 1

SAST SA Index Allocation 80/20 Portfolio Class 3

    SAST SA VCP Dynamic Strategy Portfolio Class 3

SAST SA Index Allocation 90/10 Portfolio Class 1

    SAST SA VCP Index Allocation Portfolio Class 1

SAST SA Index Allocation 90/10 Portfolio Class 3

    SAST SA VCP Index Allocation Portfolio Class 3

SAST SA International Index Portfolio Class 1

    SAST SA Wellington Capital Appreciation Portfolio Class 1

SAST SA International Index Portfolio Class 3

    SAST SA Wellington Capital Appreciation Portfolio Class 2

SAST SA Invesco Growth Opportunities Portfolio Class 1

    SAST SA Wellington Capital Appreciation Portfolio Class 3

SAST SA Invesco Growth Opportunities Portfolio Class 2

    SAST SA Wellington Government and Quality Bond Portfolio Class 1

SAST SA Invesco Growth Opportunities Portfolio Class 3

    SAST SA Wellington Government and Quality Bond Portfolio Class 2

SAST SA Janus Focused Growth Portfolio Class 1

    SAST SA Wellington Government and Quality Bond Portfolio Class 3

SAST SA Janus Focused Growth Portfolio Class 2

    SAST SA Wellington Strategic Multi-Asset Portfolio Class 1

SAST SA Janus Focused Growth Portfolio Class 3

    SAST SA Wellington Strategic Multi-Asset Portfolio Class 3

VALIC Company I(c)

   

VALIC Company I International Equities Index Fund

    VALIC Company I Nasdaq-100 Index Fund

VALIC Company I International Socially Responsible Fund

    VALIC Company I Small Cap Index Fund

VALIC Company I Mid Cap Index Fund

    VALIC Company I Stock Index Fund

 

(a)

These are affiliated investment companies. SunAmerica Asset Management, LLC. “SunAmerica”, an affiliate of AGL, serves as the investment advisor to Seasons Series Trust and SunAmerica Series Trust.

 

(b)

Sub-account had no activity during the current or prior year and no assets or liabilities as of December 31, 2023.

 

(c)

VALIC Company I is an affiliated investment company. The Variable Annuity Life Insurance Company (VALIC), an affiliate of AGL, serves as the investment advisor to VALIC Company I. VALIC Retirement Services Company, a direct, wholly owned subsidiary of VALIC, serves as the transfer agent and accounting services agent to VALIC Company I. SunAmerica, an affiliate of AGL, serves as the administrator to each series of VALIC Company I and as the investment sub-advisor to certain series of VALIC Company I.

 

(d)

Formerly SAST SA Invesco Main Street Large Cap Core Portfolio.

In addition to the sub-accounts above, a contract owner may allocate contract funds to a fixed account, which is part of AGL’s General Account and not included in these financial statements. Contract owners should refer to the product prospectus for the available Funds and fixed account.

The assets of each of the sub-accounts of the Separate Account are registered in the name of AGL. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from AGL’s other assets and liabilities. The Separate Account assets are not chargeable with liabilities arising out of any other business of AGL. Net premiums from the contracts are allocated to the sub-accounts and invested in the Funds in accordance with contract owner instructions and are recorded as contract transactions in the Statements of Operations and Changes in Net Assets.

 

 

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VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

 

2.

Summary of Significant Accounting Policy

The financial statements of the Separate Account have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). The Separate Account is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The following is a summary of significant accounting policies consistently followed by the Separate Account in the preparation of its financial statements.

Use of Estimates: The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. 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 assumptions used, the financial statements of the Separate Account could be materially affected.

Investments: Investments in mutual funds are valued at their closing net asset value per share as determined by the respective mutual funds, which generally value their securities at fair value. Purchases and sales of shares of the Funds are made at the net asset values of such Funds. Transactions are recorded on a trade date basis. Realized gains and losses on the sales of investments are recognized at the date of sale and are determined on a first-in, first-out basis. Dividends and capital gain distributions from the Funds are recorded on the ex-dividend date and reinvested upon receipt.

Reserves for Annuity Contracts in Payout: Net assets allocated to contracts in the payout period are based on industry standard mortality tables depending on the calendar year of annuitization as well as other assumptions, including provisions for the risk of adverse deviation from assumptions.

An assumed interest rate of 3.50 percent is used in determining annuity payments for all products with the exception of the American Pathway II product and ICAP product, which use a 4.00 percent assumed interest rate and a 5.00 percent assumed interest rate, respectively.

At each reporting period, the assumptions must be evaluated based on current experience, and the reserves must be adjusted accordingly. To the extent additional reserves are established due to mortality risk experience, AGL makes payments to the Separate Account. If there are excess reserves remaining at the time annuity payments cease, the assets supporting those reserves are transferred from the Separate Account to the General Account. Transfers between the General Account and the Separate Account, if any, are disclosed as adjustments to net assets allocated to contracts in payout period in the Statements of Operations and Changes in Net Assets. Annuity benefit payments are recorded as payments for contract benefits or terminations in the Statements of Operations and Changes in Net Assets.

Accumulation Unit: This is the basic valuation unit used to calculate the contract owner’s interest. Such units are valued daily to reflect investment performance and the prorated daily deduction for expense charges.

Income Taxes: The operations of the Separate Account are included in the federal income tax return of AGL, which is taxed as a life insurance company under the provision of the Internal Revenue Code (the Code). Under the current provisions of the Code, AGL does not expect to incur federal income taxes on the earnings of the Separate Account to the extent that the earnings are credited under the contracts. As a result, no charge is currently made to the Separate Account for federal income taxes. The Separate Account is not treated as a regulated investment company under the Code. AGL will periodically review changes in the tax law. AGL retains the right to charge for any federal income tax incurred which is applicable to the Separate Account if the law is changed.

 

3.

Fair Value Measurements

Assets recorded at fair value in the Separate Account’s Statement of Assets and Liabilities 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 the Separate Account has the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. The Separate Account does 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 value positions in Level 3. The circumstances for these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, the Separate Account makes certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability.

 

 

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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

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.

The Separate Account assets measured at fair value as of December 31, 2023 consist of investments in registered mutual funds that generally trade daily and are measured at fair value using quoted prices in active markets for identical assets, which are classified as Level 1 throughout the year. As such, no transfers between fair value hierarchy levels occurred during the year. See the Schedule of Portfolio Investments for the table presenting information about assets measured at fair value on a recurring basis at December 31, 2023, and respective hierarchy levels.

 

4.

Expenses

Expense charges are applied against the current value of the Separate Account and are paid to AGL as follows:

Separate Account Annual Charges: Deductions for the mortality and expense risk charges and distribution charges are calculated daily, at an annual rate, on the actual prior day’s net asset value of the underlying Funds comprising the sub-accounts attributable to the contract owners and are paid to AGL. The mortality risk charge represents compensation to AGL for the mortality risks assumed under the contract, which is the obligation to provide payments during the payout period for the life of the contract and to provide the standard death benefit. The expense risk charge represents compensation to AGL for assuming the risk that the current contract administration charges will be insufficient to cover the cost of administering the contract in the future. The distribution expense charge covers all expenses associated with the distribution of the contract. These charges are included on the mortality and expense risk and administrative charges line in the Statements of Operations and Changes in Net Assets.

The exact rate depends on the particular product issued and the death benefits elected for each product. Expense charges for each product are as follows:

 

   

Products

    Separate Account Annual Charges*

American Pathway II

    1.30% or 1.40%

Anchor Advisor

    1.52% or 1.77%

ICAP II

    1.40%

Polaris

    1.52%

Polaris Advantage

    1.65%, 1.90% or 2.30%

Polaris Advantage II

    1.30%, 1.55%, 1.90% or 2.15%

Polaris Advisor

    1.52%, 1.72% or 1.97%

Polaris Advisor III

    1.65%, 1.90% or 2.30%

Polaris Advisory

    0.40%, 0.55% or 0.80%

Polaris Advisory Income

    0.40%, 0.55% or 0.80%

PolarisAmerica

    1.52% or 1.77%

Polaris Choice

    1.52%, 1.72% or 1.97%

Polaris Choice II

    1.52%, 1.72% or 1.97%

Polaris Choice III

    1.52%, 1.77%, 2.02% or 2.17%

Polaris Choice IV

    1.65%, 1.90% or 2.30%

Polaris II

    1.52% or 1.77%

Polaris II Platinum Series

    1.52% or 1.77%

Polaris Platinum

    1.52% or 1.77%

Polaris Platinum II

    1.52%, 1.77% or 2.02%

Polaris Platinum III

    1.15%, 1.30%, 1.55%, 1.70% or 1.95%

Polaris Preferred Solution

    1.00%, 1.15%, 1.40%, 1.55% or 1.80%

Polaris Protector

    1.52% or 1.77%

Polaris Retirement Protector

    1.30%, 1.55% or 1.80%

Polaris Select Investor

    1.10%, 1.35%, 1.40% or 1.70%

Vista Capital Advantage

    1.40%

WM Diversified Strategies

    1.40%, 1.55% or 1.80%

WM Diversified Strategies III

    1.55%, 1.70% or 1.95%

 

*

The distribution charge is deducted at an annual rate of 0.15 percent of the net asset value of each portfolio and is included in the respective separate account annual charge rate.

 

 

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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

Contract Maintenance Charge: During the accumulation phase, an annual contract maintenance charge is assessed by AGL on the contract anniversary. In the event of a full surrender, a contract maintenance charge is assessed at the date of surrender and deducted from the withdrawal proceeds. The contract maintenance charge represents a reimbursement of administrative expenses incurred by AGL related to the establishment and maintenance of the record keeping function for the sub-accounts. These charges are included as part of the contract maintenance charges line in the Statements of Operations and Changes in Net Assets.

The contract maintenance charge ranges from $30 to $50 for certain contracts. For ICAP II, the contract maintenance charge of $30 is assessed on the contract anniversary, if the contract was issued on or after September 1, 1987. The contract maintenance charge of $30 is assessed on December 31 each year, if the contract was issued prior to September 1, 1987.

Withdrawal Charge: A withdrawal charge is applicable to certain contract withdrawals pursuant to the contract and is payable to AGL. The withdrawal charges are included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

Withdrawal charges may be assessed for withdrawals in excess of the free withdrawal amount as defined in the contracts. Withdrawal amounts in excess of the free withdrawal amount are assessed withdrawal charges based on tables of charges applicable to specific contracts.

The maximum withdrawal charge of 9 percent is assessed on amount withdrawn in excess of free withdrawals. The Vista product has a maximum withdrawal charge of 6 percent and the ICAP II has a maximum withdrawal charge of 5 percent. There are no withdrawal charges under the Polaris Advisor, Polaris Advisor III, Polaris Advisory and Polaris Advisory Income contracts.

Transfer Fee: A transfer fee may be assessed on each transfer of funds in excess of the maximum transactions allowed within a contract year depending on the contract provision. The transfer fee is included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

A transfer fee of $25 ($10 in Pennsylvania and Texas) is assessed on each transfer in excess of the maximum transactions allowed for the product.

Premium Tax Charge: Certain states charge taxes on purchase payments up to a maximum of 3.50 percent. Some states assess premium taxes at the time of purchase payments, while some other states assess premium taxes when annuity payments begin or upon surrender. There are certain states that do not assess premium taxes. If the law of the state requires premium taxes to be paid when purchase payments are made, AGL will deduct the tax from such payments prior to depositing the payments into the Separate Account. Otherwise, such tax will be deducted from the account value when annuity payments begin. Premium taxes are included as part of the payments received from contract owners line in the Statements of Operations and Changes in Net Assets.

Annuity Charge: For ICAP II, there may be an annuity charge in the event that the contract is switched to the payout phase. Option 1 for payouts provides a life income with installments guaranteed, Option 2 provides a joint and survivor life payout, and Option 3 provides income for a specified period. No annuity charge is assessed if Option 1 or Option 2 is elected. If Option 3 is elected, an annuity charge equal to the withdrawal charge if the contract were surrendered may apply. No annuity charge will be assessed if Option 3 is elected by a beneficiary under the death benefit. The annuity charge is included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

Capital Protector Fee: This optional feature provides a guaranteed minimum contract value at the end of an applicable waiting period. The annual fee is calculated as a percentage of the contract value minus purchase payments received after the 90th day from the date of contract issuance and deducted quarterly from the contract value during the waiting period. This optional feature is included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

The annual fee for the Capital Protector Program ranges from 0.10 percent to 0.65 percent. This optional feature is offered under Polaris Advantage, Polaris Choice II, Polaris Choice III, Polaris Platinum II, Polaris Preferred Solution, Polaris Protector, WM Diversified Strategies and WM Diversified Strategies III contracts.

Income Protector Fee: The optional Income Protector Program provides a guaranteed fixed minimum retirement income upon annuitization. The fee is calculated as a percentage of the income benefit base, as defined in the prospectus, and is deducted annually from the contract value. The income benefit base is calculated using the contract value on the effective date of the enrollment in the program and then each subsequent contract anniversary, adjusted for the applicable growth rates, purchase payments, proportional withdrawals, fees, and charges. The income protector fee is included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

The annual fee for the Capital Protector Program ranges from 0.10 percent to 0.45 percent. This optional feature is offered under Polaris America, Polaris Choice, Polaris Choice II, Polaris II, Polaris Platinum, Polaris Platinum II, Polaris Protector, WM Diversified Strategies, and WM Diversified Strategies III contracts.

 

 

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VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

MarketLock, Marketlock for Two, MarketLock for Life Plus, MarketLock Income Plus and MarketLock for Life: These optional features provide a guaranteed withdrawal stream by locking in market gains during an applicable evaluation period.

 

  •  

MarketLock, MarketLock for Two and Income Rewards

The annual fee is calculated as a percentage of the maximum anniversary value benefit base and deducted quarterly from the contract value. The maximum anniversary value benefit base is calculated as the greater of eligible purchase payments received during the first two years, adjusted for withdrawals, or the maximum anniversary date contract value occurring in the first ten contract years, adjusted for withdrawals. The annual fee is included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

 

  •  

MarketLock for Life, MarketLock for Life Plus and MarketLock Income Plus

The annual fee is calculated as a percentage of the income base and deducted quarterly from the contract value. The income base is calculated as the greater of purchase payments made in the first contract year and purchase payments made in contract years 2-5, capped at 100 percent of purchase payments made in the first year plus a bonus, if eligible, or the highest anniversary date contract value less purchase payments made in years 2-5 greater than the purchase payments received in the first year.

The annual fee is included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

Income Rewards: This optional feature provides a guaranteed withdrawal stream during an applicable period of time.

The annual fee is calculated as a percentage of the benefit base and deducted quarterly from the contract value. The benefit base is equal to purchase payments received during the first 90 days, adjusted for withdrawals, before the benefit availability date (the availability date is up to the first 10 contract years, based on election). After the benefit availability date, the benefit base is increased by up to 50 percent of premiums received during the first 90 days, adjusted for withdrawals. The annual fee is included as part of the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets.

The annual fees for the optional features discussed above are as follows (Note: if Extension of the evaluation period is elected, an additional 0.10 percent – 0.25 percent is added to the Annual Fee):

 

     
Optional Features    Products Offered    Annual Fees
     

MarketLock

    Polaris Advantage    0.50% to 0.65%
   Polaris Choice II   
   Polaris Choice III   
   Polaris Platinum II   
   Polaris Preferred Solution   
   WM Diversified Strategies   
   WM Diversified Strategies III   

MarketLock for Two

    Polaris Choice II    0.40% prior to the first withdrawal
   Polaris Choice III    0.80% after the first withdrawal
   Polaris Platinum II   
   Polaris Preferred Solution   
   WM Diversified Strategies   
   WM Diversified Strategies III   

Income Rewards

    Polaris Choice II    0.65% in years zero to seven
   Polaris Choice III    0.45% in years eight to ten
   Polaris Platinum II   
   Polaris Preferred Solution   
   Polaris Protector   
   WM Diversified Strategies   
   WM Diversified Strategies III   

MarketLock for Life

    Polaris Advantage    0.70% for one covered person
   Polaris Choice III    0.95% for two covered persons
   Polaris Choice IV   
   Polaris Platinum II   
   Polaris Platinum III   
     Polaris Preferred Solution     

 

 

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VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

     
Optional Features    Products Offered    Annual Fees

MarketLock for Life Plus

    Polaris Advantage    0.65% to 0.95% for one covered person
   Polaris Choice III    0.90% to 1.25% for two covered persons
   Polaris Platinum II   
   Polaris Preferred Solution   
     

MarketLock Income Plus

    Polaris Advantage    0.85% to 1.10% for one covered person
   Polaris Advisor III    1.10% to 1.35% for two covered persons
   Polaris Choice III   
   Polaris Platinum II   
   Polaris Platinum III   
     Polaris Preferred Solution     

Polaris Income Plus, Polaris Income Builder, Polaris Income Plus Daily, Polaris Income Plus Flex, Polaris Income Plus Daily Flex, and Polaris Income Max Fee: These optional features provide a guaranteed withdrawal stream by locking in market gains during an applicable evaluation period. The annual fee is calculated as a percentage of the maximum anniversary value benefit base and deducted quarterly from the contract value. The maximum anniversary value benefit base is calculated as the greater of eligible purchase payments received during the applicable time period, adjusted for withdrawals plus a credit, if eligible, or the maximum anniversary date contract value. The fee may change after the first year based on an index of market volatility. The annual fee included as part of the payments for contract benefits or terminations line of the Statements of Operations and Changes in Net Assets.

The annual fees for the optional features discussed above are as follows:

 

     
Optional Features    Products Offered    Annual Fees

Polaris Income Plus

    Polaris Advantage    0.60% to 2.20% for one covered person
   Polaris Advantage II    0.60% to 2.70% for two covered persons
   Polaris Advisory   
   Polaris Choice III   
   Polaris Choice IV   
   Polaris Platinum III   
   Polaris Preferred Solution   
   Polaris Retirement Protector   

Polaris Income Builder

    Polaris Advantage    0.60% to 2.20% for one covered person
   Polaris Advantage II    0.60% to 2.70% for two covered persons
   Polaris Choice III   
   Polaris Choice IV   
   Polaris Platinum III   
   Polaris Preferred Solution   

Polaris Income Plus Daily

    Polaris Advisory    0.60% to 2.50% for one covered person
   Polaris Platinum III    0.60% to 2.50% for two covered persons
   Polaris Preferred Solution   

Polaris Income Plus Flex

    Polaris Advisory    0.60% to 2.50% for one covered person
   Polaris Platinum III    0.60% to 2.50% for two covered persons
   Polaris Preferred Solution   

Polaris Income Plus Daily Flex

    Polaris Advisory    0.60% to 2.50% for one covered person
   Polaris Platinum III    0.60% to 2.50% for two covered persons
   Polaris Preferred Solution   

Polaris Income Max

    Polaris Advisory    0.60% to 2.50% for one covered person
   Polaris Platinum III    0.60% to 2.50% for two covered persons
     Polaris Preferred Solution     

 

 

71

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

 

5.

Purchases and Sales of Investments

For the year ended December 31, 2023, the aggregate cost of purchases and proceeds from the sales of investments were:

 

     

Sub-accounts 

       Cost of Purchases         Proceeds from Sales   

American Funds IS American High-Income Trust Class 3

    $ 734,441      $ 1,269,496  

American Funds IS Asset Allocation Fund Class 2

      3,268,295        6,243,685  

American Funds IS Asset Allocation Fund Class 3

      2,176,923        2,528,240  

American Funds IS Capital Income Builder Class 4

      291,540        208,895  

American Funds IS Global Growth Fund Class 2

      13,526,126        20,561,966  

American Funds IS Growth Fund Class 2

      21,335,784        45,065,767  

American Funds IS Growth Fund Class 3

      15,570,237        23,836,674  

American Funds IS Growth-Income Fund Class 2

      17,880,900        33,341,474  

American Funds IS Growth-Income Fund Class 3

      9,002,797        14,085,176  

American Funds IS International Fund Class 3

      418,894        1,551,950  

American Funds IS U.S. Government Securities Fund Class 3

      404,073        966,821  

American Funds IS Ultra-Short Bond Fund Class 3

      516,586        579,148  

BlackRock 60/40 Target Allocation ETF V.I. Fund Class III

      8,633        14,227  

BlackRock Global Allocation V.I. Fund Class III

      28,247        95,045  

Columbia VP Dividend Opportunity Fund Class 1

      113,162        178,065  

Columbia VP Emerging Markets Bond Fund Class 2

      4,113        801  

Columbia VP Income Opportunities Fund Class 1

      544,297        1,230,816  

Columbia VP Large Cap Growth Fund Class 1

      373,969        4,330,730  

Columbia VP Limited Duration Credit Fund Class 2

      61,906        53,368  

Columbia VP Overseas Core Fund Class 2

      60,909        134,711  

Columbia VP Select Mid Cap Growth Opportunity Fund Class 1

      7,759        33,097  

Columbia VP Small Company Growth Fund Class 1

      230        265,611  

CTIVP® Principal Blue Chip Growth Fund Class 1

      119,066        695,699  

Delaware Ivy VIP Asset Strategy Class II

      4,909        100,939  

FTVIP Franklin Allocation VIP Fund Class 1

      836        387  

FTVIP Franklin Allocation VIP Fund Class 2

      3,095,787        6,015,530  

FTVIP Franklin Income VIP Fund Class 1

      220,755        1,268,626  

FTVIP Franklin Income VIP Fund Class 2

      33,886,414        20,675,615  

FTVIP Franklin Strategic Income VIP Fund Class 2

      82,299        35,290  

Goldman Sachs VIT Government Money Market Fund Institutional Shares

      1,619,896        2,274,068  

Goldman Sachs VIT Government Money Market Fund Service Shares

      146,270,117        159,522,369  

Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Advisor Shares

      31,125        149,044  

Goldman Sachs VIT Trend Driven Allocation Fund Service Shares

      3,876        770  

Invesco V.I. American Franchise Fund Series I

      1,479        22,206  

Invesco V.I. American Franchise Fund Series II

      19,690,100        17,716,126  

Invesco V.I. Balanced-Risk Allocation Fund Series II

      14,363        99,053  

Invesco V.I. Comstock Fund Series I

      568,283        21,100  

Invesco V.I. Comstock Fund Series II

      67,518,448        47,114,640  

Invesco V.I. Growth and Income Fund Series I

      145,293        250,811  

Invesco V.I. Growth and Income Fund Series II

      61,040,569        46,967,087  

Lord Abbett Bond Debenture Portfolio Class VC

      168,220        151,211  

Lord Abbett Fundamental Equity Portfolio Class VC

      4,226        60,143  

Lord Abbett Growth and Income Portfolio Class VC

      11,140,873        21,979,291  

Lord Abbett Mid Cap Stock Portfolio Class VC

      576,492        1,498,444  

Lord Abbett Short Duration Income Portfolio Class VC

      283,811        131,447  

Morgan Stanley VIF Global Infrastructure Portfolio Class II

      198,426        95,266  

Neuberger Berman AMT US Equity Index PutWrite Strategy Portfolio Class S

      3,297        156,299  

PIMCO All Asset Portfolio Advisor Class

      362        6,511  

PIMCO Dynamic Bond Portfolio Advisor Class

      44,901        266,632  

PIMCO Emerging Markets Bond Portfolio Advisor Class

      1,390,150        332,060  

PIMCO Total Return Portfolio Advisor Class

      53,464,450        9,053,191  

PIMCO Total Return Portfolio Institutional Class

      276,793        256,778  

PVC Core Plus Bond Account Class 1

      126,825        514,586  

PVC Diversified International Account Class 1

      21,113        145,955  

PVC Equity Income Account Class 1

      620,500        1,355,887  

PVC Equity Income Account Class 2

      454,728        619,801  

PVC Government & High Quality Bond Account Class 1

      35,934        347,654  

PVC Large Cap Growth Account I Class 1

      76,591        154,755  

PVC MidCap Account Class 1

      35,883        272,516  

PVC MidCap Account Class 2

      13,346        50,507  

PVC Principal Capital Appreciation Account Class 1

      751,320        1,063,782  

 

 

72

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

     

Sub-accounts 

       Cost of Purchases         Proceeds from Sales   

PVC Principal Capital Appreciation Account Class 2

    $ 121,612      $ 346,525  

PVC Real Estate Securities Account Class 1

      21,445        76,622  

PVC Real Estate Securities Account Class 2

      18,086        29,906  

PVC SAM Balanced Portfolio Class 1

      1,464,989        4,092,435  

PVC SAM Balanced Portfolio Class 2

      1,220,503        1,822,147  

PVC SAM Conservative Balanced Portfolio Class 1

      70,813        210,939  

PVC SAM Conservative Balanced Portfolio Class 2

      80,088        408,965  

PVC SAM Conservative Growth Portfolio Class 1

      773,065        2,427,200  

PVC SAM Conservative Growth Portfolio Class 2

      854,061        1,203,446  

PVC SAM Flexible Income Portfolio Class 1

      84,062        641,825  

PVC SAM Flexible Income Portfolio Class 2

      84,360        635,620  

PVC SAM Strategic Growth Portfolio Class 1

      682,498        589,428  

PVC SAM Strategic Growth Portfolio Class 2

      248,037        515,916  

PVC Short-Term Income Account Class 1

      38,673        405,532  

PVC SmallCap Account Class 1

      2,939        106,204  

PVC SmallCap Account Class 2

      1,300        85,645  

SST SA Allocation Balanced Portfolio Class 1

      3,274        35,110  

SST SA Allocation Balanced Portfolio Class 3

      20,508,028        22,026,410  

SST SA Allocation Growth Portfolio Class 1

      1,915,518        5,273,392  

SST SA Allocation Growth Portfolio Class 3

      45,321,273        22,363,902  

SST SA Allocation Moderate Growth Portfolio Class 1

      42,718        13,682  

SST SA Allocation Moderate Growth Portfolio Class 3

      29,741,750        25,083,233  

SST SA Allocation Moderate Portfolio Class 1

      20,464        7,582  

SST SA Allocation Moderate Portfolio Class 3

      23,019,326        23,461,024  

SST SA American Century Inflation Protection Portfolio Class 1

      30,730        22,263  

SST SA American Century Inflation Protection Portfolio Class 3

      45,274,234        49,487,280  

SST SA Columbia Focused Value Portfolio Class 3

      3,382        60,877  

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3

      13,369        3,351  

SST SA Multi-Managed International Equity Portfolio Class 3

      10,952        65,384  

SST SA Multi-Managed Large Cap Growth Portfolio Class 3

      2,177        42,908  

SST SA Multi-Managed Large Cap Value Portfolio Class 3

      30,045        18,214  

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3

      1,117        36,756  

SST SA Multi-Managed Mid Cap Value Portfolio Class 3

      37,346        23,154  

SST SA Multi-Managed Small Cap Portfolio Class 3

      9,568        40,090  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 1

      156,032        12,979  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 3

      5,237,705        11,434,689  

SST SA T. Rowe Price Growth Stock Portfolio Class 3

      23,777        137,857  

SAST SA AB Growth Portfolio Class 1

      30,621,758        47,812,091  

SAST SA AB Growth Portfolio Class 2

      4,064,408        7,244,122  

SAST SA AB Growth Portfolio Class 3

      67,502,713        83,289,612  

SAST SA AB Small & Mid Cap Value Portfolio Class 1

      289,802        49,365  

SAST SA AB Small & Mid Cap Value Portfolio Class 2

      962,803        1,001,375  

SAST SA AB Small & Mid Cap Value Portfolio Class 3

      48,692,767        47,169,661  

SAST SA American Funds Asset Allocation Portfolio Class 1

      1,207,454        735,740  

SAST SA American Funds Asset Allocation Portfolio Class 3

      241,658,892        122,097,907  

SAST SA American Funds Global Growth Portfolio Class 1

      399,348        86,838  

SAST SA American Funds Global Growth Portfolio Class 3

      59,626,684        56,624,919  

SAST SA American Funds Growth Portfolio Class 1

      4,672,801        2,900,516  

SAST SA American Funds Growth Portfolio Class 3

      152,883,629        107,704,782  

SAST SA American Funds Growth-Income Portfolio Class 1

      763,927        132,608  

SAST SA American Funds Growth-Income Portfolio Class 3

      67,038,641        47,120,006  

SAST SA American Funds VCP Managed Allocation Portfolio Class 1

      160,728        372,733  

SAST SA American Funds VCP Managed Allocation Portfolio Class 3

      120,412,463        213,197,808  

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 1

      154,071        6,966  

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 3

      7,664,057        3,692,881  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 1

      15,171        350,724  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 3

      24,890,901        75,995,414  

SAST SA DFA Ultra Short Bond Portfolio Class 1

      8,165,273        11,311,642  

SAST SA DFA Ultra Short Bond Portfolio Class 2

      1,088,616        2,281,069  

SAST SA DFA Ultra Short Bond Portfolio Class 3

      33,486,688        47,776,083  

SAST SA Emerging Markets Equity Index Portfolio Class 1

      91,499        11,873  

SAST SA Emerging Markets Equity Index Portfolio Class 3

      4,070,058        2,128,650  

SAST SA Federated Hermes Corporate Bond Portfolio Class 1

      2,045,000        6,038,959  

SAST SA Federated Hermes Corporate Bond Portfolio Class 2

      823,662        1,862,624  

SAST SA Federated Hermes Corporate Bond Portfolio Class 3

      130,703,282        63,557,410  

 

 

73

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

     

Sub-accounts 

       Cost of Purchases         Proceeds from Sales   

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 1

    $ 122,819      $ 34,040  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 3

      3,584,301        1,914,041  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1

      1,174,650        1,864,647  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 2

      311,909        490,600  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 3

      17,603,942        23,181,914  

SAST SA Fixed Income Index Portfolio Class 1

      4,864        915  

SAST SA Fixed Income Index Portfolio Class 3

      18,032,289        8,198,087  

SAST SA Fixed Income Intermediate Index Portfolio Class 1

      19,392        270  

SAST SA Fixed Income Intermediate Index Portfolio Class 3

      12,486,135        7,269,551  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1

      34,681,802        32,132,002  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 2

      5,755,275        5,261,474  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 3

      64,091,633        49,070,560  

SAST SA Franklin Small Company Value Portfolio Class 1

      45,830        5,861  

SAST SA Franklin Small Company Value Portfolio Class 3

      19,870,096        18,435,011  

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 1

      143,774        3,537  

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 3

      6,014,751        1,062,402  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1

      1,569,653        4,616,125  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 2

      168,929        812,982  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 3

      21,764,756        22,652,473  

SAST SA Franklin Tactical Opportunities Portfolio Class 1

      73,074        2,369  

SAST SA Franklin Tactical Opportunities Portfolio Class 3

      8,481,800        5,194,648  

SAST SA Global Index Allocation 60/40 Portfolio Class 1

      3,241        42,748  

SAST SA Global Index Allocation 60/40 Portfolio Class 3

      10,979,760        6,807,990  

SAST SA Global Index Allocation 75/25 Portfolio Class 1

      262,568        6,312  

SAST SA Global Index Allocation 75/25 Portfolio Class 3

      11,977,133        5,253,507  

SAST SA Global Index Allocation 90/10 Portfolio Class 1

      274,040        92,827  

SAST SA Global Index Allocation 90/10 Portfolio Class 3

      35,282,498        17,351,900  

SAST SA Goldman Sachs Global Bond Portfolio Class 1

      579,487        1,799,373  

SAST SA Goldman Sachs Global Bond Portfolio Class 2

      157,997        363,736  

SAST SA Goldman Sachs Global Bond Portfolio Class 3

      19,053,995        23,094,531  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 1

      94        702  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 3

      3,546,391        3,049,114  

SAST SA Index Allocation 60/40 Portfolio Class 1

      19,720        2,874  

SAST SA Index Allocation 60/40 Portfolio Class 3

      25,506,057        19,966,698  

SAST SA Index Allocation 80/20 Portfolio Class 1

      1,056,233        96,806  

SAST SA Index Allocation 80/20 Portfolio Class 3

      40,513,342        29,721,331  

SAST SA Index Allocation 90/10 Portfolio Class 1

      5,276,505        5,692,357  

SAST SA Index Allocation 90/10 Portfolio Class 3

      99,063,446        73,832,464  

SAST SA International Index Portfolio Class 1

      152,555        141,014  

SAST SA International Index Portfolio Class 3

      7,289,347        5,745,647  

SAST SA Invesco Growth Opportunities Portfolio Class 1

      510,273        974,425  

SAST SA Invesco Growth Opportunities Portfolio Class 2

      82,828        227,861  

SAST SA Invesco Growth Opportunities Portfolio Class 3

      9,755,998        13,960,184  

SAST SA Janus Focused Growth Portfolio Class 1

      1,061,486        1,719,642  

SAST SA Janus Focused Growth Portfolio Class 2

      31,797        1,096,509  

SAST SA Janus Focused Growth Portfolio Class 3

      10,548,794        27,360,213  

SAST SA JPMorgan Diversified Balanced Portfolio Class 1

      2,920,134        15,223,836  

SAST SA JPMorgan Diversified Balanced Portfolio Class 2

      884,692        2,586,935  

SAST SA JPMorgan Diversified Balanced Portfolio Class 3

      14,474,755        25,608,218  

SAST SA JPMorgan Emerging Markets Portfolio Class 1

      943,631        1,556,004  

SAST SA JPMorgan Emerging Markets Portfolio Class 2

      176,365        312,796  

SAST SA JPMorgan Emerging Markets Portfolio Class 3

      11,318,148        11,808,888  

SAST SA JPMorgan Equity-Income Portfolio Class 1

      13,577,482        14,952,263  

SAST SA JPMorgan Equity-Income Portfolio Class 2

      1,291,127        1,524,775  

SAST SA JPMorgan Equity-Income Portfolio Class 3

      63,224,958        23,867,002  

SAST SA JPMorgan Global Equities Portfolio Class 1

      1,914,319        3,792,131  

SAST SA JPMorgan Global Equities Portfolio Class 2

      208,816        545,181  

SAST SA JPMorgan Global Equities Portfolio Class 3

      5,267,586        6,292,626  

SAST SA JPMorgan Large Cap Core Portfolio Class 1

      1,373,010        3,235,738  

SAST SA JPMorgan Large Cap Core Portfolio Class 2

      409,770        604,466  

SAST SA JPMorgan Large Cap Core Portfolio Class 3

      8,823,186        12,101,191  

SAST SA JPMorgan MFS Core Bond Portfolio Class 1

      2,603,988        4,908,386  

SAST SA JPMorgan MFS Core Bond Portfolio Class 2

      823,750        580,452  

SAST SA JPMorgan MFS Core Bond Portfolio Class 3

      86,233,151        61,015,285  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1

      1,104,389        6,334,965  

 

 

74

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

     

Sub-accounts 

       Cost of Purchases         Proceeds from Sales   

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 2

    $ 87,598      $ 2,283,589  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 3

      20,723,055        28,402,218  

SAST SA Large Cap Growth Index Portfolio Class 1

      275,696        128,239  

SAST SA Large Cap Growth Index Portfolio Class 3

      9,482,342        5,386,373  

SAST SA Large Cap Index Portfolio Class 1

      239,138        27,575  

SAST SA Large Cap Index Portfolio Class 3

      21,761,802        10,157,921  

SAST SA Large Cap Value Index Portfolio Class 1

      80,094        243,569  

SAST SA Large Cap Value Index Portfolio Class 3

      13,744,725        3,784,504  

SAST SA MFS Blue Chip Growth Portfolio Class 1

      1,218,054        1,716,070  

SAST SA MFS Blue Chip Growth Portfolio Class 2

      109,997        474,223  

SAST SA MFS Blue Chip Growth Portfolio Class 3

      18,160,231        27,746,640  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 1

      4,361,087        6,004,015  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 2

      605,959        1,150,422  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 3

      23,688,206        34,415,427  

SAST SA MFS Total Return Portfolio Class 1

      6,362,363        10,709,034  

SAST SA MFS Total Return Portfolio Class 2

      1,137,710        2,331,480  

SAST SA MFS Total Return Portfolio Class 3

      29,528,620        25,690,021  

SAST SA Mid Cap Index Portfolio Class 1

      135,353        9,778  

SAST SA Mid Cap Index Portfolio Class 3

      13,451,979        3,560,620  

SAST SA Morgan Stanley International Equities Portfolio Class 1

      854,275        2,737,761  

SAST SA Morgan Stanley International Equities Portfolio Class 2

      244,904        1,147,595  

SAST SA Morgan Stanley International Equities Portfolio Class 3

      7,090,138        15,310,304  

SAST SA PIMCO RAE International Value Portfolio Class 1

      11,944        3,547  

SAST SA PIMCO RAE International Value Portfolio Class 2

      425,493        1,173,863  

SAST SA PIMCO RAE International Value Portfolio Class 3

      15,933,957        41,156,846  

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 1

      3,043        7,235  

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 3

      50,026,326        129,145,580  

SAST SA PineBridge High-Yield Bond Portfolio Class 1

      6,879,981        8,339,592  

SAST SA PineBridge High-Yield Bond Portfolio Class 2

      408,289        825,369  

SAST SA PineBridge High-Yield Bond Portfolio Class 3

      12,159,261        14,985,768  

SAST SA Putnam International Growth and Income Portfolio Class 1

      1,486,430        2,314,873  

SAST SA Putnam International Growth and Income Portfolio Class 2

      176,333        614,537  

SAST SA Putnam International Growth and Income Portfolio Class 3

      8,743,098        12,827,841  

SAST SA Schroders VCP Global Allocation Portfolio Class 1

      9,099        13,158  

SAST SA Schroders VCP Global Allocation Portfolio Class 3

      11,083,082        57,592,308  

SAST SA Small Cap Index Portfolio Class 1

      126,241        12,309  

SAST SA Small Cap Index Portfolio Class 3

      11,092,762        5,177,429  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 1

      120,648        27,286  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 3

      23,308,088        31,818,419  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 1

      6,377        23,241  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 3

      37,811,186        143,651,792  

SAST SA VCP Dynamic Allocation Portfolio Class 1

      88,709        15,627  

SAST SA VCP Dynamic Allocation Portfolio Class 3

      408,332,255        887,128,695  

SAST SA VCP Dynamic Strategy Portfolio Class 1

      101,924        42,264  

SAST SA VCP Dynamic Strategy Portfolio Class 3

      548,124,034        682,838,760  

SAST SA VCP Index Allocation Portfolio Class 1

      145,066        17,178  

SAST SA VCP Index Allocation Portfolio Class 3

      31,071,229        48,118,998  

SAST SA Wellington Capital Appreciation Portfolio Class 1

      2,490,930        40,433,911  

SAST SA Wellington Capital Appreciation Portfolio Class 2

      363,999        6,559,355  

SAST SA Wellington Capital Appreciation Portfolio Class 3

      65,180,020        158,228,143  

SAST SA Wellington Government and Quality Bond Portfolio Class 1

      2,583,735        7,449,828  

SAST SA Wellington Government and Quality Bond Portfolio Class 2

      896,196        2,179,786  

SAST SA Wellington Government and Quality Bond Portfolio Class 3

      46,372,459        50,160,287  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 1

      450,060        2,075,930  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 3

      11,678,712        10,587,701  

VALIC Company I International Equities Index Fund

      153,565        230,222  

VALIC Company I International Socially Responsible Fund

      32,917        24,313  

VALIC Company I Mid Cap Index Fund

      603,363        441,993  

VALIC Company I Nasdaq-100 Index Fund

      456,663        956,277  

VALIC Company I Small Cap Index Fund

      701,423        320,431  

VALIC Company I Stock Index Fund

      933,009        1,502,988  

 

 

75

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VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

6.

Financial Highlights

The summary of unit values and units outstanding for sub-accounts, investment income ratios, total return and expense ratios, excluding expenses of the underlying mutual funds, for each of the five years in the period ended December 31, 2023, follows:

 

       December 31, 2023            For the Year Ended December 31, 2023  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

American Funds IS American High-Income Trust Class 3

      63,998        126.98        130.34        8,336,018          6.62       1.30        1.40        10.98        11.09  

American Funds IS Asset Allocation Fund Class 2

      1,220,075        36.19        38.16        46,348,594          2.16       1.52        1.77        12.27        12.55  

American Funds IS Asset Allocation Fund Class 3

      253,623        115.28        118.33        29,982,685          2.21       1.30        1.40        12.79        12.90  

American Funds IS Capital Income Builder Class 4

      202,339        12.41        13.54        2,731,185          2.60       1.10        1.70        6.93        7.57  

American Funds IS Global Growth Fund Class 2

      2,141,469        61.79        68.01        144,415,664          0.89       1.52        1.97        20.22        20.76  

American Funds IS Growth Fund Class 2

      3,212,095        82.89        91.20        290,362,877          0.36       1.52        1.97        35.79        36.40  

American Funds IS Growth Fund Class 3

      273,391        842.11        864.44        236,114,254          0.42       1.30        1.40        36.65        36.78  

American Funds IS Growth-Income Fund Class 2

      3,966,706        53.03        58.38        229,502,280          1.34       1.52        1.97        23.69        24.24  

American Funds IS Growth-Income Fund Class 3

      317,922        435.08        446.61        141,817,300          1.39       1.30        1.40        24.47        24.60  

American Funds IS International Fund Class 3

      221,421        72.81        74.74        16,519,604          1.37       1.30        1.40        14.39        14.50  

American Funds IS U.S. Government Securities Fund Class 3

      147,743        38.92        39.96        5,897,074          3.52       1.30        1.40        1.57        1.67  

American Funds IS Ultra-Short Bond Fund Class 3

      214,810        19.36        19.87        4,267,706          4.59       1.30        1.40        3.29        3.40  

BlackRock 60/40 Target Allocation ETF V.I. Fund Class III

      25,635        13.90        15.35        383,529          1.88       1.10        1.70        13.38        14.06  

BlackRock Global Allocation V.I. Fund Class III

      43,476        12.61        13.85        589,977          2.38       1.10        1.70        10.60        11.26  

Columbia VP Dividend Opportunity Fund Class 1

      56,483        25.70        27.22        1,527,234          0.00       1.52        1.77        3.25        3.51  

Columbia VP Emerging Markets Bond Fund Class 2

      7,209           10.61        76,520          5.14          1.10           8.82  

Columbia VP Income Opportunities Fund Class 1

      199,985        26.18        29.74        5,800,141          5.06       1.52        2.17        9.17        9.88  

Columbia VP Large Cap Growth Fund Class 1

      798,903        25.79        26.80        21,246,132          0.00       1.52        2.02        40.31        41.01  

Columbia VP Limited Duration Credit Fund Class 2

      22,129        9.97        10.49        230,079          2.42       1.10        1.70        4.87        5.50  

Columbia VP Overseas Core Fund Class 2

      87,847        13.29        13.54        1,188,110          1.69       1.52        1.77        13.31        13.59  

Columbia VP Select Mid Cap Growth Opportunity Fund Class 1

      10,036        29.21        33.15        328,775          0.00       1.52        1.77        23.05        23.36  

Columbia VP Small Company Growth Fund Class 1

      8,254        38.14        40.41        330,340          0.00       1.52        1.77        24.42        24.73  

CTIVP® Principal Blue Chip Growth Fund Class 1

      68,455        24.77        25.25        1,724,732          0.00       1.52        1.77        37.10        37.44  

Delaware Ivy VIP Asset Strategy Class II

      14,461        12.30        13.39        191,066          1.71       1.10        1.70        12.02        12.69  

FTVIP Franklin Allocation VIP Fund Class 1

      1,223           12.88        15,746          1.67          0.55           14.14  

FTVIP Franklin Allocation VIP Fund Class 2

      1,835,668        14.93        15.82        31,291,752          1.45       1.00        2.30        12.01        13.47  

FTVIP Franklin Income VIP Fund Class 1

      79,498        13.10        13.40        1,056,491          6.24       0.40        0.80        8.01        8.44  

FTVIP Franklin Income VIP Fund Class 2

      7,106,425        15.42        16.17        132,777,279          5.10       1.00        2.30        6.16        7.55  

FTVIP Franklin Strategic Income VIP Fund Class 2

      98,437        10.01        10.43        1,007,898          4.46       1.10        1.40        6.68        7.00  

Goldman Sachs VIT Government Money Market Fund Institutional Shares

      994,600        10.10        10.91        10,187,808          5.09       0.40        1.52        3.47        4.63  

Goldman Sachs VIT Government Money Market Fund Service Shares

      31,537,575        9.28        10.25        315,699,258          4.69       1.00        2.30        2.41        3.75  

Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Advisor Shares

      28,601        9.62        10.08        286,612          5.16       1.10        1.40        6.04        6.36  

Goldman Sachs VIT Trend Driven Allocation Fund Service Shares

      1,436        11.52        12.40        17,542          1.50       1.10        1.35        14.03        14.31  

Invesco V.I. American Franchise Fund Series I

      3,167        18.64        19.07        59,874          0.00       0.40        0.80        39.81        40.37  

Invesco V.I. American Franchise Fund Series II

      2,841,853        32.74        37.31        122,814,939          0.00       1.00        2.30        37.41        39.20  

Invesco V.I. Balanced-Risk Allocation Fund Series II

      46,534        11.29        12.64        579,123          0.00       1.10        1.70        4.61        5.24  

Invesco V.I. Comstock Fund Series I

      53,052        15.85        16.21        854,543          2.47       0.40        0.80        11.47        11.91  

Invesco V.I. Comstock Fund Series II

      10,052,256        23.61        25.01        314,962,675          1.54       1.00        2.30        9.55        10.98  

Invesco V.I. Growth and Income Fund Series I

      72,040        14.58        14.91        1,064,759          1.43       0.40        0.80        11.77        12.21  

Invesco V.I. Growth and Income Fund Series II

      10,656,086        21.86        23.14        329,818,454          1.27       1.00        2.30        9.86        11.29  

Lord Abbett Bond Debenture Portfolio Class VC

      69,744        11.95        12.27        847,107          5.06       1.10        1.40        5.07        5.39  

Lord Abbett Fundamental Equity Portfolio Class VC

      2,937           17.20        50,519          0.39          1.10           13.38  

Lord Abbett Growth and Income Portfolio Class VC

      5,340,667        15.37        20.09        140,711,539          0.91       0.40        2.30        10.62        12.74  

Lord Abbett Mid Cap Stock Portfolio Class VC

      357,769        28.78        30.38        10,836,343          0.45       1.52        1.77        13.40        13.68  

Lord Abbett Short Duration Income Portfolio Class VC

      177,628        9.96        10.54        1,866,383          4.64       1.10        1.70        3.28        3.90  

Morgan Stanley VIF Global Infrastructure Portfolio Class II

      56,164        11.58        12.91        718,761          2.35       1.10        1.70        2.52        3.13  

Neuberger Berman AMT US Equity Index PutWrite Strategy Portfolio Class S

      26,299        12.41        12.70        331,856          0.00       1.10        1.40        13.41        13.75  

PIMCO All Asset Portfolio Advisor Class

      833        12.64        12.84        10,532          2.71       1.10        1.35        6.57        6.84  

PIMCO Dynamic Bond Portfolio Advisor Class

      49,567        10.38        10.93        538,447          3.73       1.10        1.70        5.19        5.83  

PIMCO Emerging Markets Bond Portfolio Advisor Class

      414,251        9.34        9.56        3,936,703          5.52       1.00        1.55        9.30        9.90  

PIMCO Total Return Portfolio Advisor Class

      23,657,972        8.86        9.33        217,666,112          3.44       1.00        1.95        3.79        4.78  

PIMCO Total Return Portfolio Institutional Class

      125,452        9.40        9.67        1,198,544          3.86       0.40        0.80        5.25        5.67  

PVC Core Plus Bond Account Class 1

      290,275        9.37        9.61        2,778,868          2.68       1.40        1.95        3.31        3.88  

PVC Diversified International Account Class 1

      61,235        8.92        10.46        615,068          1.20       1.40        1.95        15.19        15.82  

PVC Equity Income Account Class 1

      316,399        26.95        29.48        9,219,700          1.99       1.40        1.80        9.24        9.67  

PVC Equity Income Account Class 2

      211,419        24.63        26.05        5,578,629          1.85       1.52        1.95        8.79        9.26  

PVC Government & High Quality Bond Account Class 1

      140,725        6.80        8.04        1,080,712          2.27       1.40        1.95        2.62        3.19  

PVC Large Cap Growth Account I Class 1

      75,565        16.16        16.58        1,245,468          0.00       1.40        1.95        37.64        38.40  

PVC MidCap Account Class 1

      33,542        43.00        47.00        1,558,244          0.00       1.40        1.80        23.84        24.33  

PVC MidCap Account Class 2

      13,174        39.24        42.87        558,315          0.00       1.55        1.95        23.32        23.81  

PVC Principal Capital Appreciation Account Class 1

      222,863        45.85        50.15        11,090,675          0.81       1.40        1.80        22.92        23.41  

PVC Principal Capital Appreciation Account Class 2

      40,035        41.81        45.68        1,825,928          0.61       1.55        1.95        22.44        22.93  

PVC Real Estate Securities Account Class 1

      7,675        43.87        45.94        351,296          1.81       1.40        1.55        11.59        11.76  

PVC Real Estate Securities Account Class 2

      4,615        41.25        42.99        196,993          1.62       1.55        1.70        11.11        11.27  

PVC SAM Balanced Portfolio Class 1

      922,421        20.27        22.18        19,932,514          2.25       1.40        1.80        13.94        14.39  

PVC SAM Balanced Portfolio Class 2

      907,522        18.60        20.46        18,222,782            2.18       1.52        1.95        13.43        13.91  

 

 

76

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2023            For the Year Ended December 31, 2023  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

PVC SAM Conservative Balanced Portfolio Class 1

      155,350        12.63        13.81        2,084,668          2.74       1.40        1.80        9.98        10.42  

PVC SAM Conservative Balanced Portfolio Class 2

      114,573        11.61        17.79        1,459,352          2.59       1.52        1.95        9.65        10.12  

PVC SAM Conservative Growth Portfolio Class 1

      411,179        23.85        26.07        10,401,056          1.83       1.40        1.80        17.25        17.72  

PVC SAM Conservative Growth Portfolio Class 2

      476,930        21.82        23.95        11,226,758          1.53       1.52        1.95        16.76        17.26  

PVC SAM Flexible Income Portfolio Class 1

      142,304        13.10        14.35        1,987,633          3.69       1.40        1.80        7.42        7.85  

PVC SAM Flexible Income Portfolio Class 2

      193,060        12.06        16.29        2,547,659          2.94       1.52        1.95        7.11        7.57  

PVC SAM Strategic Growth Portfolio Class 1

      105,572        27.97        30.55        3,148,320          1.43       1.40        1.80        19.70        20.17  

PVC SAM Strategic Growth Portfolio Class 2

      161,180        25.61        28.19        4,440,550          1.24       1.52        1.95        19.24        19.75  

PVC Short-Term Income Account Class 1

      97,373        6.86        8.03        745,516          1.48       1.40        1.95        3.57        4.14  

PVC SmallCap Account Class 1

      18,099        18.38        20.08        352,200          0.30       1.40        1.80        13.47        13.93  

PVC SmallCap Account Class 2

      11,838        16.85        18.35        215,744          0.04       1.55        1.95        13.17        13.62  

SST SA Allocation Balanced Portfolio Class 1

      2,733           13.56        37,066          1.71          0.40           11.27  

SST SA Allocation Balanced Portfolio Class 3

      8,245,293        12.49        15.74        149,389,773          2.19       1.00        2.30        8.89        10.31  

SST SA Allocation Growth Portfolio Class 1

      66,382        16.43        16.89        1,114,384          0.95       0.40        0.80        16.40        16.86  

SST SA Allocation Growth Portfolio Class 3

      11,558,651        15.37        21.60        277,270,186          2.17       1.00        2.02        14.85        16.03  

SST SA Allocation Moderate Growth Portfolio Class 1

      21,889        15.48        15.64        341,693          2.62       0.40        0.55        14.78        14.95  

SST SA Allocation Moderate Growth Portfolio Class 3

      10,761,615        14.28        18.22        224,799,270          2.32       1.00        2.30        12.44        13.90  

SST SA Allocation Moderate Portfolio Class 1

      13,864        14.68        14.83        205,411          2.56       0.40        0.55        13.31        13.48  

SST SA Allocation Moderate Portfolio Class 3

      8,743,232        13.59        17.37        174,326,977          2.27       1.00        2.30        11.12        12.57  

SST SA American Century Inflation Protection Portfolio Class 1

      15,758        10.54        10.84        168,881          4.80       0.40        0.80        2.71        3.12  

SST SA American Century Inflation Protection Portfolio Class 3

      24,442,955        9.88        10.16        276,216,043          4.55       1.00        2.30        0.94        2.26  

SST SA Columbia Focused Value Portfolio Class 3

      1,112        18.51        20.13        22,090          0.50       1.10        1.35        3.93        4.19  

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3

      16,635        9.34        10.09        164,907          2.11       1.10        1.70        4.24        4.86  

SST SA Multi-Managed International Equity Portfolio Class 3

      21,206        13.09        13.26        279,330          2.26       1.10        1.40        14.23        14.58  

SST SA Multi-Managed Large Cap Growth Portfolio Class 3

      29,352        20.79        24.34        649,113          0.00       1.10        1.70        34.71        35.52  

SST SA Multi-Managed Large Cap Value Portfolio Class 3

      9,883        17.15        18.18        174,033          1.87       1.10        1.40        10.95        11.28  

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3

      10,834        20.27        22.05        229,003          0.00       1.10        1.40        19.36        19.72  

SST SA Multi-Managed Mid Cap Value Portfolio Class 3

      17,127        15.59        17.86        297,291          0.95       1.10        1.70        12.03        12.70  

SST SA Multi-Managed Small Cap Portfolio Class 3

      10,630        15.34        17.09        171,611          0.24       1.10        1.40        10.74        11.07  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 1

      29,450        16.73        16.90        493,406          2.13       0.40        0.55        20.36        20.54  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 3

      5,925,561        16.19        16.84        97,922,305          1.54       1.00        1.55        18.77        19.42  

SST SA T. Rowe Price Growth Stock Portfolio Class 3

      15,301        23.20        24.83        376,248          0.00       1.10        1.40        43.11        43.54  

SAST SA AB Growth Portfolio Class 1

      6,110,345        22.02        43.85        419,761,554          0.00       0.40        1.77        32.67        34.49  

SAST SA AB Growth Portfolio Class 2

      296,508        148.35        168.80        47,971,711          0.00       1.40        1.97        32.23        32.98  

SAST SA AB Growth Portfolio Class 3

      6,928,846        42.47        45.95        502,271,517          0.00       1.00        2.30        31.66        33.37  

SAST SA AB Small & Mid Cap Value Portfolio Class 1

      66,509        13.72        14.04        926,997          1.01       0.40        0.80        15.92        16.38  

SAST SA AB Small & Mid Cap Value Portfolio Class 2

      175,737        46.57        51.29        8,955,866          0.71       1.52        1.97        14.46        14.98  

SAST SA AB Small & Mid Cap Value Portfolio Class 3

      8,793,441        20.99        26.69        321,324,116          0.65       1.00        2.30        13.96        15.45  

SAST SA American Funds Asset Allocation Portfolio Class 1

      495,837        15.82        16.27        8,007,409          2.64       0.40        0.80        13.37        13.82  

SAST SA American Funds Asset Allocation Portfolio Class 3

      65,536,344        19.27        20.80        1,597,031,887          2.47       1.00        2.30        11.32        12.77  

SAST SA American Funds Global Growth Portfolio Class 1

      85,757        16.06        16.43        1,398,121          1.02       0.40        0.80        21.55        22.04  

SAST SA American Funds Global Growth Portfolio Class 3

      10,773,270        25.03        28.55        349,246,435          0.70       1.00        2.30        19.59        21.15  

SAST SA American Funds Growth Portfolio Class 1

      203,370        21.33        21.82        4,403,486          1.50       0.40        0.80        37.25        37.80  

SAST SA American Funds Growth Portfolio Class 3

      17,606,749        38.03        40.31        821,411,071          1.42       1.00        2.30        34.87        36.63  

SAST SA American Funds Growth-Income Portfolio Class 1

      139,349        17.03        17.42        2,406,761          2.72       0.40        0.80        25.10        25.60  

SAST SA American Funds Growth-Income Portfolio Class 3

      11,841,065        28.30        28.82        392,742,058          2.24       1.00        2.30        23.00        24.60  

SAST SA American Funds VCP Managed Allocation Portfolio Class 1

      55,418        14.76        14.92        820,820          1.54       0.40        0.55        15.28        15.46  

SAST SA American Funds VCP Managed Allocation Portfolio Class 3

      93,060,082        13.66        15.67        1,624,260,974          1.77       1.00        2.30        12.96        14.43  

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 1

      18,618        11.29        11.44        212,225          3.33       0.40        0.80        12.54        12.99  

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 3

      4,273,756        10.93        11.13        47,144,259          2.02       1.00        1.55        11.36        11.97  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 1

      32,761        12.12        12.46        404,560          0.68       0.40        0.80        11.54        11.98  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 3

      48,598,406        11.39        11.58        589,121,744          0.69       1.00        1.90        9.94        10.93  

SAST SA DFA Ultra Short Bond Portfolio Class 1

      1,694,059        10.44        10.93        19,433,316          1.13       0.40        1.77        2.80        4.22  

SAST SA DFA Ultra Short Bond Portfolio Class 2

      600,262        10.17        11.19        6,694,198          0.97       1.52        1.97        2.38        2.84  

SAST SA DFA Ultra Short Bond Portfolio Class 3

      19,553,013        7.28        9.33        175,593,096          0.91       1.00        2.30        2.02        3.35  

SAST SA Emerging Markets Equity Index Portfolio Class 1

      19,138        9.60        9.82        187,115          3.11       0.40        0.80        8.12        8.56  

SAST SA Emerging Markets Equity Index Portfolio Class 3

      1,726,218        9.07        9.36        15,910,282          2.49       1.00        1.55        7.08        7.67  

SAST SA Federated Hermes Corporate Bond Portfolio Class 1

      1,107,661        11.67        30.56        34,662,124          3.42       0.40        1.77        6.17        7.63  

SAST SA Federated Hermes Corporate Bond Portfolio Class 2

      337,414        28.41        31.32        10,500,786          3.27       1.52        1.97        5.75        6.23  

SAST SA Federated Hermes Corporate Bond Portfolio Class 3

      37,887,867        11.92        15.65        751,233,046          3.41       1.00        2.30        5.31        6.68  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 1

      27,107        13.88        14.14        380,363          0.41       0.40        0.80        26.41        26.91  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 3

      917,982        13.26        13.60        12,321,355          0.20       1.00        1.55        25.14        25.83  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1

      306,540        14.14        43.78        14,032,537          2.12       0.40        1.77        12.02        13.56  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 2

      69,497        40.75        44.88        3,072,833          1.97       1.52        1.97        11.70        12.20  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 3

      5,746,926        13.85        15.83        125,962,367          1.94       1.00        2.30        11.28        12.73  

SAST SA Fixed Income Index Portfolio Class 1

      4,948        10.18        10.44        51,337          2.34       0.40        0.80        4.96        5.38  

SAST SA Fixed Income Index Portfolio Class 3

      7,473,105        9.41        9.90        72,694,238          2.22       1.00        1.80        3.61        4.44  

SAST SA Fixed Income Intermediate Index Portfolio Class 1

      3,107        10.47        10.57        32,753          2.45       0.40        0.55        4.42        4.58  

SAST SA Fixed Income Intermediate Index Portfolio Class 3

      3,695,414        9.54        10.02        36,403,641          1.62       1.00        1.80        2.94        3.76  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1

      2,733,465        15.54        32.31        265,072,079          2.34       0.40        1.77        5.50        6.95  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 2

      397,410        86.93        98.76        37,818,286          2.18       1.40        1.97        5.20        5.80  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 3

      7,381,202        23.23        23.43        316,403,982          2.09       1.00        2.30        4.74        6.11  

SAST SA Franklin Small Company Value Portfolio Class 1

      9,544        14.29        14.62        138,512            0.55       0.40        0.80        12.11        12.56  

 

 

77

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

    

 

December 31, 2023

         For the Year Ended December 31, 2023  
        Unit Value ($)(a)(f)        Net         

 Investment

Income

  

 

    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

SAST SA Franklin Small Company Value Portfolio Class 3

      5,509,773        20.50        22.56        136,486,621          0.24       1.00        2.30        10.14        11.57  

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 1

      12,824        15.33        15.59        198,513          2.13       0.40        0.80        20.54        21.03  

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 3

      832,948        14.68        14.94        12,375,121          1.52       1.15        1.55        19.35        19.82  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1

      430,222        16.87        44.33        19,709,969          1.62       0.40        1.77        6.48        7.94  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 2

      103,023        41.35        45.49        4,644,023          1.52       1.52        1.97        6.11        6.58  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 3

      4,089,865        25.79        33.46        161,415,122          1.49       1.00        2.30        5.60        6.98  

SAST SA Franklin Tactical Opportunities Portfolio Class 1

      10,958        13.71        14.05        153,306          2.16       0.40        0.80        14.89        15.35  

SAST SA Franklin Tactical Opportunities Portfolio Class 3

      5,893,626        12.88        13.33        77,132,468          1.47       1.00        1.55        13.80        14.43  

SAST SA Global Index Allocation 60/40 Portfolio Class 1

      3,902        12.79        13.08        51,039          1.24       0.40        0.80        12.91        13.36  

SAST SA Global Index Allocation 60/40 Portfolio Class 3

      5,290,117        12.08        12.47        64,944,519          1.55       1.00        1.55        11.81        12.42  

SAST SA Global Index Allocation 75/25 Portfolio Class 1

      28,062        13.27        13.46        377,710          2.55       0.55        0.80        14.96        15.24  

SAST SA Global Index Allocation 75/25 Portfolio Class 3

      5,546,654        12.54        12.94        70,683,314          1.52       1.00        1.55        13.85        14.47  

SAST SA Global Index Allocation 90/10 Portfolio Class 1

      299,438        13.75        14.07        4,195,883          1.94       0.40        0.80        17.22        17.69  

SAST SA Global Index Allocation 90/10 Portfolio Class 3

      19,656,138        12.99        13.40        259,482,336          1.75       1.00        1.55        16.04        16.68  

SAST SA Goldman Sachs Global Bond Portfolio Class 1

      626,090        9.41        11.75        11,542,525          0.00       0.40        1.77        2.45        3.86  

SAST SA Goldman Sachs Global Bond Portfolio Class 2

      157,718        16.65        18.31        2,858,895          0.00       1.52        1.97        2.08        2.54  

SAST SA Goldman Sachs Global Bond Portfolio Class 3

      15,494,944        8.43        9.01        176,306,380          0.00       1.00        2.30        1.69        3.02  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 1

      458           13.83        6,332          1.10          0.40           16.43  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 3

      2,332,830        12.68        13.12        30,061,501          0.93       1.00        1.55        14.80        15.43  

SAST SA Index Allocation 60/40 Portfolio Class 1

      22,781           15.56        354,489          1.67          0.55           14.76  

SAST SA Index Allocation 60/40 Portfolio Class 3

      12,615,426        14.27        14.82        183,591,502          1.45       1.00        1.55        13.29        13.91  

SAST SA Index Allocation 80/20 Portfolio Class 1

      181,403        17.03        17.50        3,149,099          2.05       0.40        0.80        17.81        18.29  

SAST SA Index Allocation 80/20 Portfolio Class 3

      21,618,306        15.89        16.50        350,102,870          1.54       1.00        1.55        16.56        17.20  

SAST SA Index Allocation 90/10 Portfolio Class 1

      454,734        17.84        18.33        8,251,963          1.71       0.40        0.80        19.45        19.92  

SAST SA Index Allocation 90/10 Portfolio Class 3

      57,852,389        16.65        17.30        982,436,804          1.59       1.00        1.55        18.26        18.91  

SAST SA International Index Portfolio Class 1

      102,965        11.84        12.12        1,237,364          2.48       0.40        0.80        16.50        16.97  

SAST SA International Index Portfolio Class 3

      2,072,485        11.49        11.96        24,369,241          2.38       1.00        1.65        15.24        15.99  

SAST SA Invesco Growth Opportunities Portfolio Class 1

      421,152        14.01        14.98        6,657,277          0.00       0.40        1.77        10.53        12.05  

SAST SA Invesco Growth Opportunities Portfolio Class 2

      161,014        13.93        15.38        2,454,184          0.00       1.52        1.97        10.24        10.73  

SAST SA Invesco Growth Opportunities Portfolio Class 3

      5,230,483        21.06        25.77        118,232,347          0.00       1.00        2.30        9.87        11.30  

SAST SA Janus Focused Growth Portfolio Class 1

      337,663        20.43        42.51        14,807,099          0.00       0.40        1.77        36.90        38.78  

SAST SA Janus Focused Growth Portfolio Class 2

      181,922        41.23        43.53        7,854,945          0.00       1.52        1.77        36.76        37.10  

SAST SA Janus Focused Growth Portfolio Class 3

      3,233,934        31.02        34.78        130,910,041          0.00       1.00        2.30        35.84        37.61  

SAST SA JPMorgan Diversified Balanced Portfolio Class 1

      2,814,825        14.87        18.83        98,522,341          1.52       0.40        1.77        13.42        14.98  

SAST SA JPMorgan Diversified Balanced Portfolio Class 2

      537,953        31.04        34.18        18,185,013          1.40       1.52        1.97        13.00        13.51  

SAST SA JPMorgan Diversified Balanced Portfolio Class 3

      8,249,063        17.64        19.28        196,446,780          1.35       1.00        2.30        12.50        13.97  

SAST SA JPMorgan Emerging Markets Portfolio Class 1

      615,948        9.37        18.36        11,602,797          3.90       0.40        1.77        8.36        9.85  

SAST SA JPMorgan Emerging Markets Portfolio Class 2

      119,896        17.07        18.81        2,234,311          3.72       1.52        1.97        8.00        8.49  

SAST SA JPMorgan Emerging Markets Portfolio Class 3

      6,680,639        10.10        10.13        90,078,263          3.69       1.00        2.30        7.64        9.05  

SAST SA JPMorgan Equity-Income Portfolio Class 1

      1,241,867        16.21        26.67        104,992,283          2.35       0.40        1.77        2.85        4.27  

SAST SA JPMorgan Equity-Income Portfolio Class 2

      109,139        77.91        86.00        9,289,921          2.19       1.52        1.97        2.49        2.95  

SAST SA JPMorgan Equity-Income Portfolio Class 3

      6,938,287        24.39        25.25        220,254,028          2.33       1.00        2.30        2.03        3.36  

SAST SA JPMorgan Global Equities Portfolio Class 1

      715,079        14.64        44.18        32,552,168          1.48       0.40        1.77        21.67        23.34  

SAST SA JPMorgan Global Equities Portfolio Class 2

      56,459        41.22        46.60        2,552,760          1.36       1.40        1.97        21.21        21.90  

SAST SA JPMorgan Global Equities Portfolio Class 3

      1,716,217        18.20        20.02        40,499,262          1.26       1.00        2.30        20.67        22.24  

SAST SA JPMorgan Large Cap Core Portfolio Class 1

      377,370        18.13        59.01        23,269,416          0.76       0.40        1.77        25.25        26.97  

SAST SA JPMorgan Large Cap Core Portfolio Class 2

      54,772        54.81        60.48        3,289,821          0.63       1.52        1.97        24.72        25.28  

SAST SA JPMorgan Large Cap Core Portfolio Class 3

      1,885,445        26.87        27.77        69,049,123          0.52       1.00        2.30        24.25        25.87  

SAST SA JPMorgan MFS Core Bond Portfolio Class 1

      1,016,735        10.92        27.56        28,697,011          2.87       0.40        1.77        4.68        6.12  

SAST SA JPMorgan MFS Core Bond Portfolio Class 2

      198,541        26.64        28.17        5,561,415          2.81       1.52        1.77        4.52        4.78  

SAST SA JPMorgan MFS Core Bond Portfolio Class 3

      37,226,627        10.24        12.06        574,432,497          2.71       1.00        2.30        4.05        5.41  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1

      1,384,620        18.77        25.49        60,467,720          0.00       0.40        1.77        21.17        22.84  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 2

      340,019        39.73        45.09        14,730,970          0.00       1.40        1.97        20.79        21.48  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 3

      6,818,290        30.66        38.69        303,046,413          0.00       1.00        2.30        20.26        21.82  

SAST SA Large Cap Growth Index Portfolio Class 1

      47,702        19.20        19.64        928,374          0.55       0.40        0.80        28.30        28.82  

SAST SA Large Cap Growth Index Portfolio Class 3

      2,290,126        18.00        18.72        42,231,707          0.33       1.00        1.70        26.88        27.77  

SAST SA Large Cap Index Portfolio Class 1

      182,048        19.46        19.95        3,577,521          1.43       0.40        0.80        24.94        25.44  

SAST SA Large Cap Index Portfolio Class 3

      4,826,590        18.28        18.92        89,600,035          1.26       1.00        1.55        23.69        24.37  

SAST SA Large Cap Value Index Portfolio Class 1

      32,176        17.13        17.52        559,249          1.29       0.40        0.80        20.90        21.39  

SAST SA Large Cap Value Index Portfolio Class 3

      3,084,833        16.17        16.69        50,705,716          1.48       1.00        1.55        19.62        20.28  

SAST SA MFS Blue Chip Growth Portfolio Class 1

      386,939        20.30        23.12        9,464,669          0.53       0.40        1.77        38.61        40.52  

SAST SA MFS Blue Chip Growth Portfolio Class 2

      129,769        22.46        23.75        3,049,258          0.39       1.52        1.77        38.48        38.83  

SAST SA MFS Blue Chip Growth Portfolio Class 3

      3,725,036        33.97        34.70        132,058,477          0.30       1.00        2.30        37.66        39.45  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 1

      518,732        17.63        34.23        40,336,696          0.85       0.40        1.77        16.97        18.58  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 2

      82,819        69.64        76.50        6,275,121          0.67       1.52        1.97        16.55        17.07  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 3

      4,359,568        26.90        30.65        184,841,602          0.59       1.00        2.30        16.05        17.56  

SAST SA MFS Total Return Portfolio Class 1

      1,482,801        15.18        25.52        82,542,643          1.88       0.40        1.77        8.38        9.87  

SAST SA MFS Total Return Portfolio Class 2

      315,854        50.86        56.04        17,477,090          1.72       1.52        1.97        7.95        8.43  

SAST SA MFS Total Return Portfolio Class 3

      7,445,612        17.56        18.62        203,792,880          1.70       1.00        2.30        7.56        8.96  

SAST SA Mid Cap Index Portfolio Class 1

      41,332        15.13        15.48        634,394          1.28       0.40        0.80        15.08        15.53  

SAST SA Mid Cap Index Portfolio Class 3

      4,229,567        14.31        15.18        63,109,847          1.09       1.00        1.95        13.50        14.57  

SAST SA Morgan Stanley International Equities Portfolio Class 1

      1,100,652        11.83        17.11        19,891,773          1.53       0.40        1.77        14.52        16.10  

SAST SA Morgan Stanley International Equities Portfolio Class 2

      341,619        15.95        17.55        5,929,755            1.41       1.52        1.97        14.30        14.81  

 

 

 

78

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2023          For the Year Ended December 31, 2023  
        Unit Value ($)(a)(f)        Net         

 Investment

Income

  

 

    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

SAST SA Morgan Stanley International Equities Portfolio Class 3

      5,902,488        11.53        12.88        89,621,006          1.29       1.00        2.30        13.72        15.20  

SAST SA PIMCO RAE International Value Portfolio Class 1

      11,695        10.41        10.49        122,721          4.47       0.40        0.55        16.99        17.17  

SAST SA PIMCO RAE International Value Portfolio Class 2

      374,917        18.76        20.93        7,799,966          4.18       1.52        1.97        15.12        15.64  

SAST SA PIMCO RAE International Value Portfolio Class 3

      16,568,321        10.25        11.68        244,245,523          3.97       1.00        2.30        14.66        16.15  

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 1

      3,724        13.07        13.30        49,517          4.46       0.55        0.80        11.09        11.37  

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 3

      58,091,203        12.25        13.48        829,333,488          4.00       1.00        1.90        9.69        10.67  

SAST SA PineBridge High-Yield Bond Portfolio Class 1

      626,374        13.06        37.63        24,813,513          6.22       0.40        1.77        14.13        15.70  

SAST SA PineBridge High-Yield Bond Portfolio Class 2

      143,212        34.93        38.55        5,486,423          6.21       1.52        1.97        13.93        14.44  

SAST SA PineBridge High-Yield Bond Portfolio Class 3

      3,359,118        14.78        16.54        77,925,307          6.08       1.00        2.30        13.11        14.59  

SAST SA Putnam International Growth and Income Portfolio Class 1

      917,417        12.85        14.86        19,803,622          2.57       0.40        1.77        17.39        19.00  

SAST SA Putnam International Growth and Income Portfolio Class 2

      224,733        19.35        21.25        4,739,973          2.35       1.52        1.97        16.94        17.46  

SAST SA Putnam International Growth and Income Portfolio Class 3

      4,672,464        14.47        18.35        80,469,830          2.27       1.00        2.17        16.63        17.99  

SAST SA Schroders VCP Global Allocation Portfolio Class 1

      20,527        12.54        12.67        258,457          1.55       0.40        0.55        14.94        15.11  

SAST SA Schroders VCP Global Allocation Portfolio Class 3

      31,072,348        11.64        12.23        397,346,252          1.24       1.00        1.90        13.09        14.11  

SAST SA Small Cap Index Portfolio Class 1

      44,371        13.14        13.44        591,746          1.01       0.40        0.80        15.34        15.80  

SAST SA Small Cap Index Portfolio Class 3

      4,073,865        12.29        13.04        52,233,727          0.80       1.00        1.95        13.73        14.81  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 1

      34,626        15.66        15.81        543,699          1.25       0.40        0.55        18.70        18.88  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 3

      29,296,217        14.14        15.00        432,086,938          0.90       1.00        1.95        16.82        17.93  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 1

      16,757        14.83        14.99        248,799          1.89       0.40        0.55        15.97        16.14  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 3

      77,778,988        13.59        14.34        1,167,348,192          1.62       1.00        1.90        14.10        15.13  

SAST SA VCP Dynamic Allocation Portfolio Class 1

      34,591        14.71        15.12        518,327          2.62       0.40        0.80        12.94        13.40  

SAST SA VCP Dynamic Allocation Portfolio Class 3

      350,538,996        13.71        15.78        5,992,757,449          2.12       1.00        2.02        11.23        12.37  

SAST SA VCP Dynamic Strategy Portfolio Class 1

      48,915        14.61        14.76        718,731          2.80       0.40        0.55        11.63        11.80  

SAST SA VCP Dynamic Strategy Portfolio Class 3

      280,422,971        13.47        15.45        4,659,394,020          2.40       1.00        2.02        9.85        10.97  

SAST SA VCP Index Allocation Portfolio Class 1

      38,173        13.76        13.89        527,346          1.40       0.40        0.55        15.55        15.72  

SAST SA VCP Index Allocation Portfolio Class 3

      31,593,517        12.73        13.18        409,278,449          1.37       1.00        1.55        14.11        14.74  

SAST SA Wellington Capital Appreciation Portfolio Class 1

      1,478,574        18.60        58.69        343,827,507          0.00       0.40        1.77        37.25        39.14  

SAST SA Wellington Capital Appreciation Portfolio Class 2

      203,486        204.12        228.01        44,988,069          0.00       1.40        1.97        36.72        37.49  

SAST SA Wellington Capital Appreciation Portfolio Class 3

      15,178,584        35.03        48.44        994,324,274          0.00       1.00        2.30        36.14        37.91  

SAST SA Wellington Government and Quality Bond Portfolio Class 1

      1,855,657        10.29        13.03        40,621,827          2.09       0.40        1.77        3.23        4.65  

SAST SA Wellington Government and Quality Bond Portfolio Class 2

      706,319        17.75        19.58        13,710,448          1.93       1.52        1.97        2.88        3.35  

SAST SA Wellington Government and Quality Bond Portfolio Class 3

      26,548,262        9.72        9.95        360,543,290          1.91       1.00        2.30        2.40        3.74  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 1

      142,506        14.66        83.11        11,059,022          1.49       0.40        1.40        13.52        14.66  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 3

      8,449,441        13.22        14.16        117,161,305          1.33       1.00        1.95        12.63        13.70  

VALIC Company I International Equities Index Fund

      327,565        13.32        13.46        4,401,231          2.47       1.10        1.40        15.63        15.97  

VALIC Company I International Socially Responsible Fund

      62,994        15.91        16.81        1,054,525          1.68       1.10        1.40        16.71        17.06  

VALIC Company I Mid Cap Index Fund

      193,283        18.88        20.61        3,916,509          1.16       1.10        1.40        14.33        14.68  

VALIC Company I Nasdaq-100 Index Fund

      99,316        33.33        39.20        3,743,837          0.31       1.10        1.70        51.90        52.81  

VALIC Company I Small Cap Index Fund

      162,433        15.17        18.41        2,897,663          1.39       1.10        1.70        14.40        15.09  

VALIC Company I Stock Index Fund

      482,523        22.22        25.20        12,066,957            1.25       1.10        1.70        23.69        24.43  

 

 

                                                                                    
     December 31, 2022            For the Year Ended December 31, 2022  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

American Funds IS American High-Income Trust Class 3

      72,169        114.42        117.33        8,462,224          7.38       1.30        1.40        -10.51        -10.42  

American Funds IS Asset Allocation Fund Class 2

      1,363,175        32.24        33.91        46,035,976          1.75       1.52        1.77        -14.92        -14.71  

American Funds IS Asset Allocation Fund Class 3

      269,354        102.21        104.81        28,206,780          1.81       1.30        1.40        -14.58        -14.49  

American Funds IS Capital Income Builder Class 4

      199,285        11.60        12.59        2,500,979          2.48       1.10        1.70        -8.93        -8.39  

American Funds IS Global Growth Fund Class 2

      2,415,476        51.40        56.32        134,947,415          0.58       1.52        1.97        -26.21        -25.87  

American Funds IS Growth Fund Class 2

      3,660,475        61.04        66.86        242,695,335          0.28       1.52        1.97        -31.30        -30.99  

American Funds IS Growth Fund Class 3

      297,600        616.28        631.98        187,911,811          0.34       1.30        1.40        -30.86        -30.79  

American Funds IS Growth-Income Fund Class 2

      4,482,042        42.87        46.99        208,775,356          1.17       1.52        1.97        -18.12        -17.75  

American Funds IS Growth-Income Fund Class 3

      348,371        349.54        358.44        124,724,884          1.22       1.30        1.40        -17.59        -17.51  

American Funds IS International Fund Class 3

      237,462        63.65        65.27        15,475,218          1.63       1.30        1.40        -21.87        -21.79  

American Funds IS U.S. Government Securities Fund Class 3

      165,744        38.32        39.30        6,507,952          3.61       1.30        1.40        -12.14        -12.05  

American Funds IS Ultra-Short Bond Fund Class 3

      225,290        18.74        19.22        4,328,939          0.58       1.30        1.40        -0.21        -0.11  

BlackRock 60/40 Target Allocation ETF V.I. Fund Class III

      26,273        12.26        13.46        344,503          1.78       1.10        1.70        -16.47        -15.96  

BlackRock Global Allocation V.I. Fund Class III

      49,036        11.40        12.45        599,651          0.00       1.10        1.70        -17.49        -16.99  

Columbia VP Dividend Opportunity Fund Class 1

      58,177        24.89        26.30        1,520,603          0.00       1.52        1.77        -2.84        -2.60  

Columbia VP Emerging Markets Bond Fund Class 2

      7,176           9.75        69,999          3.81          1.10           -17.07  

Columbia VP Income Opportunities Fund Class 1

      233,091        23.98        27.07        6,155,476          5.00       1.52        2.17        -11.94        -11.37  

Columbia VP Large Cap Growth Fund Class 1

      950,665        18.38        19.01        17,942,900          0.00       1.52        2.02        -32.75        -32.42  

Columbia VP Limited Duration Credit Fund Class 2

      21,604        9.51        9.94        213,146          0.55       1.10        1.70        -7.94        -7.38  

Columbia VP Overseas Core Fund Class 2

      93,973        11.73        11.92        1,119,169          0.72       1.52        1.77        -16.39        -16.18  

Columbia VP Select Mid Cap Growth Opportunity Fund Class 1

      10,725        23.74        26.88        284,840          0.00       1.52        1.77        -32.05        -31.88  

Columbia VP Small Company Growth Fund Class 1

      15,760        30.66        32.40        506,876          0.00       1.52        1.77        -36.89        -36.74  

CTIVP® Principal Blue Chip Growth Fund Class 1

      91,080        18.07        18.37        1,670,678          0.00       1.52        1.77        -29.27        -29.09  

Delaware Ivy VIP Asset Strategy Class II

      22,232        10.98        11.88        262,049          1.37       1.10        1.70        -16.18        -15.67  

FTVIP Franklin Allocation VIP Fund Class 1

      1,220           11.28        13,763          1.87          0.55           -16.14  

FTVIP Franklin Allocation VIP Fund Class 2

      2,052,074        13.33        13.94        30,941,304            1.55       1.00        2.30        -17.91        -16.83  

 

 

79

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2022            For the Year Ended December 31, 2022  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

FTVIP Franklin Income VIP Fund Class 1

      179,577        12.13        12.36        2,203,613          6.10       0.40        0.80        -5.99        -5.61  

FTVIP Franklin Income VIP Fund Class 2

      7,113,905        14.34        15.23        123,668,043          4.85       1.00        2.30        -7.62        -6.41  

FTVIP Franklin Strategic Income VIP Fund Class 2

      96,920        9.30        9.75        929,141          4.23       1.10        1.70        -12.25        -11.73  

Goldman Sachs VIT Government Money Market Fund Institutional Shares

      1,096,181        9.76        10.43        10,841,980          1.62       0.40        1.52        0.05        1.17  

Goldman Sachs VIT Government Money Market Fund Service Shares

      33,970,139        9.71        9.88        328,951,511          1.53       1.00        1.97        -0.60        0.37  

Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Advisor Shares

      42,297        9.07        9.47        399,235          3.01       1.10        1.40        -7.91        -7.63  

Goldman Sachs VIT Trend Driven Allocation Fund Service Shares

      1,191        10.11        10.85        12,678          0.00       1.10        1.35        -20.24        -20.05  

Invesco V.I. American Franchise Fund Series I

      4,427        13.33        13.58        59,808          0.00       0.40        0.80        -31.66        -31.39  

Invesco V.I. American Franchise Fund Series II

      2,826,014        23.52        27.15        87,831,916          0.00       1.00        2.30        -32.86        -31.98  

Invesco V.I. Balanced-Risk Allocation Fund Series II

      53,145        10.79        12.01        628,487          7.24       1.10        1.70        -15.96        -15.45  

Invesco V.I. Comstock Fund Series I

      22,084        14.22        14.49        318,660          1.87       0.40        0.80        0.32        0.72  

Invesco V.I. Comstock Fund Series II

      10,488,776        21.27        22.83        298,819,348          1.37       1.00        2.30        -1.44        -0.16  

Invesco V.I. Growth and Income Fund Series I

      90,181        13.04        13.29        1,189,080          1.68       0.40        0.80        -6.50        -6.13  

Invesco V.I. Growth and Income Fund Series II

      11,513,648        19.64        21.07        322,688,719          1.23       1.00        2.30        -8.13        -6.94  

Lord Abbett Bond Debenture Portfolio Class VC

      71,122        11.38        11.64        820,505          3.35       1.10        1.40        -14.01        -13.75  

Lord Abbett Fundamental Equity Portfolio Class VC

      6,324           15.17        95,951          0.88          1.10           -12.94  

Lord Abbett Growth and Income Portfolio Class VC

      5,863,788        13.64        18.16        138,597,357          1.21       0.40        2.30        -11.50        -9.80  

Lord Abbett Mid Cap Stock Portfolio Class VC

      397,752        25.37        26.72        10,599,555          0.74       1.52        1.77        -12.77        -12.55  

Lord Abbett Short Duration Income Portfolio Class VC

      169,006        9.64        10.14        1,708,875          2.73       1.10        1.70        -6.66        -6.10  

Morgan Stanley VIF Global Infrastructure Portfolio Class II

      57,073        11.29        12.52        705,825          2.54       1.10        1.70        -9.86        -9.32  

Neuberger Berman AMT US Equity Index PutWrite Strategy Portfolio Class S

      38,708        10.94        11.16        429,671          0.00       1.10        1.40        -12.51        -12.25  

PIMCO All Asset Portfolio Advisor Class

      1,355        11.86        12.02        16,151          7.72       1.10        1.35        -13.05        -12.83  

PIMCO Dynamic Bond Portfolio Advisor Class

      72,188        9.87        10.33        742,053          2.72       1.10        1.70        -8.03        -7.47  

PIMCO Emerging Markets Bond Portfolio Advisor Class

      312,243        8.54        8.70        2,711,377          4.62       1.00        1.55        -17.09        -16.64  

PIMCO Total Return Portfolio Advisor Class

      19,186,717        8.54        8.90        168,946,623          2.43       1.00        1.95        -16.04        -15.24  

PIMCO Total Return Portfolio Institutional Class

      128,899        8.93        9.15        1,165,100          2.25       0.40        0.80        -14.85        -14.51  

PVC Core Plus Bond Account Class 1

      335,461        9.07        9.25        3,094,671          2.75       1.40        1.95        -15.78        -15.32  

PVC Diversified International Account Class 1

      74,210        7.74        9.03        644,211          2.15       1.40        1.95        -21.54        -21.11  

PVC Equity Income Account Class 1

      360,224        24.67        26.88        9,578,221          1.80       1.40        1.80        -12.09        -11.74  

PVC Equity Income Account Class 2

      229,452        22.64        23.84        5,548,304          1.60       1.52        1.95        -12.44        -12.06  

PVC Government & High Quality Bond Account Class 1

      183,074        6.62        7.80        1,371,544          1.24       1.40        1.95        -13.51        -13.03  

PVC Large Cap Growth Account I Class 1

      83,706        11.74        11.98        998,034          0.00       1.40        1.95        -35.43        -35.07  

PVC MidCap Account Class 1

      39,531        34.72        37.80        1,477,768          0.16       1.40        1.80        -24.35        -24.05  

PVC MidCap Account Class 2

      14,300        31.82        34.63        489,202          0.00       1.55        1.95        -24.64        -24.34  

PVC Principal Capital Appreciation Account Class 1

      242,686        37.30        40.64        9,790,906          0.74       1.40        1.80        -17.91        -17.58  

PVC Principal Capital Appreciation Account Class 2

      48,506        34.15        37.16        1,788,868          0.57       1.55        1.95        -18.23        -17.90  

PVC Real Estate Securities Account Class 1

      9,305        39.31        41.11        381,385          1.18       1.40        1.55        -26.56        -26.45  

PVC Real Estate Securities Account Class 2

      5,101        37.13        38.64        195,906          0.98       1.55        1.70        -26.83        -26.72  

PVC SAM Balanced Portfolio Class 1

      1,103,936        17.79        19.39        20,807,097          2.24       1.40        1.80        -17.64        -17.31  

PVC SAM Balanced Portfolio Class 2

      986,927        16.40        17.96        17,418,067          1.97       1.52        1.95        -17.91        -17.55  

PVC SAM Conservative Balanced Portfolio Class 1

      169,285        11.49        12.50        2,063,703          2.33       1.40        1.80        -15.98        -15.64  

PVC SAM Conservative Balanced Portfolio Class 2

      144,710        10.59        16.15        1,672,998          2.15       1.52        1.95        -16.33        -15.97  

PVC SAM Conservative Growth Portfolio Class 1

      508,536        20.34        22.15        10,861,521          2.00       1.40        1.80        -19.25        -18.93  

PVC SAM Conservative Growth Portfolio Class 2

      518,445        18.68        20.42        10,415,098          1.81       1.52        1.95        -19.56        -19.21  

PVC SAM Flexible Income Portfolio Class 1

      186,944        12.20        13.30        2,435,365          2.73       1.40        1.80        -14.66        -14.31  

PVC SAM Flexible Income Portfolio Class 2

      240,353        11.26        15.15        2,947,040          2.55       1.52        1.95        -15.04        -14.67  

PVC SAM Strategic Growth Portfolio Class 1

      104,850        23.37        25.42        2,608,838          1.98       1.40        1.80        -20.23        -19.91  

PVC SAM Strategic Growth Portfolio Class 2

      178,445        21.48        23.54        4,103,538          1.66       1.52        1.95        -20.54        -20.20  

PVC Short-Term Income Account Class 1

      147,287        6.62        7.71        1,077,588          0.92       1.40        1.95        -5.31        -4.79  

PVC SmallCap Account Class 1

      23,521        16.20        17.62        403,440          0.05       1.40        1.80        -22.05        -21.73  

PVC SmallCap Account Class 2

      16,660        14.89        16.15        267,713          0.00       1.55        1.95        -22.41        -22.10  

SST SA Allocation Balanced Portfolio Class 1

      5,478           12.19        66,756          1.69          0.40           -15.61  

SST SA Allocation Balanced Portfolio Class 3

      8,868,358        11.33        14.45        146,001,778          2.60       1.00        2.30        -17.42        -16.34  

SST SA Allocation Growth Portfolio Class 1

      285,042        14.12        14.46        4,087,123          4.38       0.40        0.80        -17.91        -17.58  

SST SA Allocation Growth Portfolio Class 3

      11,667,965        13.25        18.81        241,918,979          2.32       1.00        2.02        -19.15        -18.33  

SST SA Allocation Moderate Growth Portfolio Class 1

      22,125        13.48        13.60        300,596          3.41       0.40        0.55        -17.06        -16.93  

SST SA Allocation Moderate Growth Portfolio Class 3

      11,508,673        12.53        16.21        211,697,344          2.67       1.00        2.30        -18.63        -17.57  

SST SA Allocation Moderate Portfolio Class 1

      14,230        12.96        13.07        185,820          3.63       0.40        0.55        -16.50        -16.38  

SST SA Allocation Moderate Portfolio Class 3

      9,474,845        12.07        15.63        168,532,888          2.67       1.00        2.30        -18.18        -17.11  

SST SA American Century Inflation Protection Portfolio Class 1

      15,698        10.26        10.51        163,557          2.40       0.40        0.80        -11.58        -11.23  

SST SA American Century Inflation Protection Portfolio Class 3

      25,666,793        9.78        9.93        284,534,597          2.25       1.00        2.30        -13.16        -12.03  

SST SA Columbia Focused Value Portfolio Class 3

      4,092        17.81        19.32        78,784          1.16       1.10        1.35        -3.33        -3.09  

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3

      15,798        8.96        9.62        149,299          1.87       1.10        1.70        -15.93        -15.42  

SST SA Multi-Managed International Equity Portfolio Class 3

      25,779        11.46        11.57        296,597          1.34       1.10        1.40        -17.73        -17.49  

SST SA Multi-Managed Large Cap Growth Portfolio Class 3

      30,996        15.44        17.96        508,697          0.00       1.10        1.70        -39.06        -38.70  

SST SA Multi-Managed Large Cap Value Portfolio Class 3

      10,628        15.45        16.34        168,630          1.69       1.10        1.40        -5.00        -4.72  

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3

      12,528        16.98        18.42        222,349          0.00       1.10        1.40        -29.97        -29.76  

SST SA Multi-Managed Mid Cap Value Portfolio Class 3

      17,554        14.69        15.85        271,739          0.51       1.10        1.40        -10.27        -10.00  

SST SA Multi-Managed Small Cap Portfolio Class 3

      12,935        13.85        15.39        186,943          0.13       1.10        1.40        -18.01        -17.76  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 1

      20,486        13.90        14.02        284,918          1.40       0.40        0.55        -17.69        -17.56  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 3

      6,354,744        13.63        14.10        88,161,258          1.08       1.00        1.55        -18.66        -18.21  

SST SA T. Rowe Price Growth Stock Portfolio Class 3

      21,683        16.21        17.30        371,510          0.00       1.10        1.40        -41.88        -41.71  

SAST SA AB Growth Portfolio Class 1

      6,719,484        16.37        33.06        350,092,527            0.00       0.40        1.77        -29.85        -28.89  

 

 

80

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2022            For the Year Ended December 31, 2022  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

SAST SA AB Growth Portfolio Class 2

      337,216        112.19        126.94        41,088,996          0.00       1.40        1.97        -30.11        -29.71  

SAST SA AB Growth Portfolio Class 3

      7,410,398        31.85        34.90        416,671,422          0.00       1.00        2.30        -30.40        -29.49  

SAST SA AB Small & Mid Cap Value Portfolio Class 1

      52,915        11.84        12.06        634,606          1.19       0.40        0.80        -16.38        -16.04  

SAST SA AB Small & Mid Cap Value Portfolio Class 2

      191,083        40.69        44.61        8,460,448          0.85       1.52        1.97        -17.50        -17.13  

SAST SA AB Small & Mid Cap Value Portfolio Class 3

      9,403,424        18.18        23.42        300,963,834          0.78       1.00        2.30        -17.87        -16.80  

SAST SA American Funds Asset Allocation Portfolio Class 1

      525,617        13.96        14.29        7,468,299          1.98       0.40        0.80        -14.13        -13.78  

SAST SA American Funds Asset Allocation Portfolio Class 3

      67,864,280        17.09        18.69        1,469,885,240          1.74       1.00        2.30        -15.54        -14.44  

SAST SA American Funds Global Growth Portfolio Class 1

      76,394        13.21        13.46        1,022,038          0.00       0.40        0.80        -25.35        -25.05  

SAST SA American Funds Global Growth Portfolio Class 3

      12,090,807        20.67        23.88        324,538,833          0.00       1.00        2.30        -26.67        -25.71  

SAST SA American Funds Growth Portfolio Class 1

      105,996        15.54        15.83        1,668,026          0.71       0.40        0.80        -30.45        -30.18  

SAST SA American Funds Growth Portfolio Class 3

      18,561,258        27.84        29.89        634,852,756          0.49       1.00        2.30        -31.68        -30.78  

SAST SA American Funds Growth-Income Portfolio Class 1

      111,784        13.62        13.87        1,540,308          1.14       0.40        0.80        -17.15        -16.82  

SAST SA American Funds Growth-Income Portfolio Class 3

      12,288,102        22.71        23.43        327,509,080          0.85       1.00        2.30        -18.63        -17.57  

SAST SA American Funds VCP Managed Allocation Portfolio Class 1

      74,997        12.81        12.92        961,542          1.35       0.40        0.55        -17.42        -17.30  

SAST SA American Funds VCP Managed Allocation Portfolio Class 3

      102,519,354        11.93        13.87        1,568,854,955          0.92       1.00        2.30        -19.06        -18.01  

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 1

      4,565        10.04        10.13        46,222          1.90       0.40        0.80        -16.48        -16.15  

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 3

      3,922,646        9.82        9.94        38,752,738          1.96       1.00        1.55        -17.28        -16.83  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 1

      62,712        10.87        11.13        692,089          0.00       0.40        0.80        -18.16        -17.84  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 3

      52,753,463        10.27        10.50        578,266,266          0.00       1.00        1.95        -19.30        -18.53  

SAST SA DFA Ultra Short Bond Portfolio Class 1

      1,960,657        10.01        10.63        21,855,545          0.00       0.40        1.77        -3.26        -1.93  

SAST SA DFA Ultra Short Bond Portfolio Class 2

      705,017        9.93        10.88        7,640,534          0.00       1.52        1.97        -3.57        -3.13  

SAST SA DFA Ultra Short Bond Portfolio Class 3

      21,058,288        7.14        9.03        183,831,101          0.00       1.00        2.30        -4.09        -2.84  

SAST SA Emerging Markets Equity Index Portfolio Class 1

      11,135        8.88        9.05        100,163          1.96       0.40        0.80        -20.97        -20.65  

SAST SA Emerging Markets Equity Index Portfolio Class 3

      1,529,077        8.47        8.69        13,125,286          1.93       1.00        1.55        -21.77        -21.34  

SAST SA Federated Hermes Corporate Bond Portfolio Class 1

      1,268,269        10.85        28.79        37,172,457          3.49       0.40        1.77        -15.78        -14.62  

SAST SA Federated Hermes Corporate Bond Portfolio Class 2

      379,420        26.87        29.49        11,100,644          3.34       1.52        1.97        -16.05        -15.67  

SAST SA Federated Hermes Corporate Bond Portfolio Class 3

      34,764,328        11.17        14.86        656,710,081          3.31       1.00        2.30        -16.44        -15.35  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 1

      19,680        10.98        11.14        217,893          0.01       0.40        0.80        -27.15        -26.85  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 3

      766,046        10.59        10.81        8,196,967          0.00       1.00        1.55        -27.85        -27.45  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1

      342,252        12.45        39.08        13,973,782          0.87       0.40        1.77        -28.23        -27.24  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 2

      78,415        36.49        40.00        3,094,012          0.68       1.52        1.97        -28.50        -28.17  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 3

      6,355,594        12.45        14.04        124,534,724          0.64       1.00        2.30        -28.82        -27.89  

SAST SA Fixed Income Index Portfolio Class 1

      4,650        9.70        9.91        45,824          3.96       0.40        0.80        -13.49        -13.15  

SAST SA Fixed Income Index Portfolio Class 3

      6,511,499        9.09        9.48        60,802,458          1.69       1.00        1.80        -14.63        -13.95  

SAST SA Fixed Income Intermediate Index Portfolio Class 1

      1,267        10.03        10.11        12,734          1.44       0.40        0.55        -7.62        -7.48  

SAST SA Fixed Income Intermediate Index Portfolio Class 3

      3,169,435        9.26        9.66        30,166,808          1.12       1.00        1.80        -9.10        -8.37  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1

      2,969,565        14.53        30.63        275,770,611          1.65       0.40        1.77        -3.07        -1.73  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 2

      435,560        82.63        93.34        39,222,189          1.50       1.40        1.97        -3.44        -2.89  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 3

      7,748,271        21.90        22.37        316,980,351          1.41       1.00        2.30        -3.83        -2.58  

SAST SA Franklin Small Company Value Portfolio Class 1

      7,207        12.75        12.99        93,065          0.94       0.40        0.80        -11.17        -10.81  

SAST SA Franklin Small Company Value Portfolio Class 3

      5,807,331        18.37        20.49        129,227,938          0.40       1.00        2.30        -12.71        -11.57  

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 1

      3,993        12.72        12.88        51,235          2.48       0.40        0.80        -13.83        -13.49  

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 3

      547,025        12.30        12.46        6,789,885          1.79       1.15        1.55        -14.73        -14.39  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1

      505,498        15.63        41.64        21,476,642          1.73       0.40        1.77        -9.32        -8.07  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 2

      118,192        38.97        42.68        4,998,979          1.63       1.52        1.97        -9.61        -9.21  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 3

      4,133,679        24.11        31.68        152,675,006          1.58       1.00        2.30        -9.99        -8.82  

SAST SA Franklin Tactical Opportunities Portfolio Class 1

      5,644        11.93        12.18        68,275          1.64       0.40        0.80        -14.37        -14.02  

SAST SA Franklin Tactical Opportunities Portfolio Class 3

      5,634,135        11.32        11.65        64,638,935          1.04       1.00        1.55        -15.23        -14.76  

SAST SA Global Index Allocation 60/40 Portfolio Class 1

      7,429           11.54        85,725          0.28          0.40           -14.46  

SAST SA Global Index Allocation 60/40 Portfolio Class 3

      5,102,482        10.81        11.09        55,877,444          0.04       1.00        1.55        -15.66        -15.20  

SAST SA Global Index Allocation 75/25 Portfolio Class 1

      8,595           11.68        100,383          0.33          0.55           -15.74  

SAST SA Global Index Allocation 75/25 Portfolio Class 3

      5,193,674        11.02        11.30        57,975,040          0.11       1.00        1.55        -16.80        -16.34  

SAST SA Global Index Allocation 90/10 Portfolio Class 1

      300,454        11.73        11.95        3,579,998          1.41       0.40        0.80        -16.75        -16.42  

SAST SA Global Index Allocation 90/10 Portfolio Class 3

      18,987,109        11.12        11.48        215,384,933          1.24       1.00        1.70        -17.72        -17.14  

SAST SA Goldman Sachs Global Bond Portfolio Class 1

      680,771        9.06        11.47        12,298,874          0.00       0.40        1.77        -20.35        -19.26  

SAST SA Goldman Sachs Global Bond Portfolio Class 2

      166,955        16.31        17.86        2,952,649          0.00       1.52        1.97        -20.70        -20.34  

SAST SA Goldman Sachs Global Bond Portfolio Class 3

      15,616,106        8.18        8.86        173,623,698          0.00       1.00        2.30        -21.02        -19.99  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 1

      509           11.88        6,050          0.00          0.40           -16.55  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 3

      2,281,843        11.04        11.36        25,552,863          0.00       1.00        1.55        -17.63        -17.17  

SAST SA Index Allocation 60/40 Portfolio Class 1

      22,841           13.56        309,702          0.93          0.55           -15.22  

SAST SA Index Allocation 60/40 Portfolio Class 3

      12,778,397        12.60        13.01        163,643,018          1.28       1.00        1.55        -16.24        -15.78  

SAST SA Index Allocation 80/20 Portfolio Class 1

      130,945        14.45        14.80        1,925,282          1.53       0.40        0.80        -16.70        -16.36  

SAST SA Index Allocation 80/20 Portfolio Class 3

      22,016,091        13.63        14.08        305,021,683          1.34       1.00        1.55        -17.47        -17.01  

SAST SA Index Allocation 90/10 Portfolio Class 1

      523,609        14.93        15.29        7,930,353          1.80       0.40        0.80        -17.29        -16.96  

SAST SA Index Allocation 90/10 Portfolio Class 3

      59,262,262        14.08        14.55        848,552,672          1.35       1.00        1.55        -18.11        -17.66  

SAST SA International Index Portfolio Class 1

      104,015        10.17        10.36        1,069,777          2.37       0.40        0.80        -15.19        -14.85  

SAST SA International Index Portfolio Class 3

      1,962,422        10.02        10.31        19,940,353          2.63       1.00        1.55        -16.06        -15.60  

SAST SA Invesco Growth Opportunities Portfolio Class 1

      445,094        12.50        13.55        6,351,748          0.00       0.40        1.77        -36.50        -35.62  

SAST SA Invesco Growth Opportunities Portfolio Class 2

      169,040        12.64        13.89        2,324,188          0.00       1.52        1.97        -36.75        -36.46  

SAST SA Invesco Growth Opportunities Portfolio Class 3

      5,443,217        18.92        23.46        109,127,892          0.00       1.00        2.30        -37.07        -36.25  

SAST SA Janus Focused Growth Portfolio Class 1

      348,155        14.72        31.05        11,216,948          0.00       0.40        1.77        -34.71        -33.81  

SAST SA Janus Focused Growth Portfolio Class 2

      207,384        30.15        31.75        6,532,954          0.00       1.52        1.77        -34.86        -34.69  

SAST SA Janus Focused Growth Portfolio Class 3

      3,657,471        22.54        25.60        107,989,498            0.00       1.00        2.30        -35.21        -34.36  

 

 

81

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2022            For the Year Ended December 31, 2022  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

SAST SA JPMorgan Diversified Balanced Portfolio Class 1

      3,189,769        12.94        16.60        98,390,143          1.05       0.40        1.77        -17.43        -16.30  

SAST SA JPMorgan Diversified Balanced Portfolio Class 2

      591,618        27.47        30.11        17,626,978          1.00       1.52        1.97        -17.70        -17.33  

SAST SA JPMorgan Diversified Balanced Portfolio Class 3

      8,721,707        15.48        17.14        183,448,512          0.90       1.00        2.30        -18.04        -16.97  

SAST SA JPMorgan Emerging Markets Portfolio Class 1

      661,331        8.53        16.94        11,536,400          2.51       0.40        1.77        -26.76        -25.75  

SAST SA JPMorgan Emerging Markets Portfolio Class 2

      130,533        15.80        17.33        2,242,419          2.37       1.52        1.97        -27.01        -26.68  

SAST SA JPMorgan Emerging Markets Portfolio Class 3

      6,827,097        9.27        9.41        85,468,640          2.45       1.00        2.30        -27.35        -26.40  

SAST SA JPMorgan Equity-Income Portfolio Class 1

      1,385,319        15.55        25.93        113,914,930          1.83       0.40        1.77        -3.56        -2.23  

SAST SA JPMorgan Equity-Income Portfolio Class 2

      123,353        76.01        83.53        10,205,445          1.67       1.52        1.97        -3.91        -3.48  

SAST SA JPMorgan Equity-Income Portfolio Class 3

      6,317,616        23.60        24.74        196,395,500          1.74       1.00        2.30        -4.30        -3.05  

SAST SA JPMorgan Global Equities Portfolio Class 1

      781,167        11.87        36.31        29,311,318          1.58       0.40        1.77        -17.29        -16.16  

SAST SA JPMorgan Global Equities Portfolio Class 2

      66,604        34.01        38.23        2,473,477          1.40       1.40        1.97        -17.55        -17.08  

SAST SA JPMorgan Global Equities Portfolio Class 3

      1,797,576        15.08        16.38        35,368,607          1.46       1.00        2.30        -17.93        -16.86  

SAST SA JPMorgan Large Cap Core Portfolio Class 1

      416,657        14.28        47.12        20,627,216          0.89       0.40        1.77        -21.59        -20.51  

SAST SA JPMorgan Large Cap Core Portfolio Class 2

      59,939        43.95        48.27        2,870,999          0.74       1.52        1.97        -21.83        -21.47  

SAST SA JPMorgan Large Cap Core Portfolio Class 3

      2,005,604        21.35        22.35        59,249,366          0.69       1.00        2.30        -22.20        -21.18  

SAST SA JPMorgan MFS Core Bond Portfolio Class 1

      1,127,486        10.29        26.32        30,034,248          2.28       0.40        1.77        -14.66        -13.48  

SAST SA JPMorgan MFS Core Bond Portfolio Class 2

      192,338        25.49        26.89        5,141,003          1.96       1.52        1.77        -14.78        -14.57  

SAST SA JPMorgan MFS Core Bond Portfolio Class 3

      35,807,261        9.72        11.59        530,372,133          1.95       1.00        2.30        -15.43        -14.32  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1

      1,482,255        15.28        21.03        53,768,999          0.00       0.40        1.77        -28.35        -27.36  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 2

      390,264        32.89        37.12        13,943,040          0.00       1.40        1.97        -28.58        -28.17  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 3

      6,919,378        25.17        32.17        252,762,932          0.00       1.00        2.30        -28.90        -27.98  

SAST SA Large Cap Growth Index Portfolio Class 1

      39,368        14.96        15.25        596,214          0.37       0.40        0.80        -30.18        -29.90  

SAST SA Large Cap Growth Index Portfolio Class 3

      2,068,224        14.18        14.65        29,927,128          0.26       1.00        1.70        -30.98        -30.50  

SAST SA Large Cap Index Portfolio Class 1

      179,155        15.58        15.90        2,813,186          0.81       0.40        0.80        -18.99        -18.66  

SAST SA Large Cap Index Portfolio Class 3

      4,312,283        14.78        15.21        64,557,407          1.16       1.00        1.55        -19.79        -19.35  

SAST SA Large Cap Value Index Portfolio Class 1

      46,022        14.17        14.43        658,550          1.95       0.40        0.80        -6.34        -5.97  

SAST SA Large Cap Value Index Portfolio Class 3

      2,670,271        13.52        13.87        36,590,538          1.99       1.00        1.55        -7.24        -6.73  

SAST SA MFS Blue Chip Growth Portfolio Class 1

      409,746        14.45        16.68        7,237,256          0.00       0.40        1.77        -31.04        -30.09  

SAST SA MFS Blue Chip Growth Portfolio Class 2

      147,469        16.22        17.11        2,498,175          0.00       1.52        1.77        -31.16        -30.99  

SAST SA MFS Blue Chip Growth Portfolio Class 3

      4,140,626        24.36        25.21        103,433,688          0.00       1.00        2.30        -31.63        -30.74  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 1

      580,574        14.87        29.26        38,726,054          1.07       0.40        1.77        -17.79        -16.66  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 2

      97,474        59.76        65.35        6,310,093          0.91       1.52        1.97        -18.08        -17.71  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 3

      4,953,432        22.88        26.41        180,380,959          0.81       1.00        2.30        -18.41        -17.35  

SAST SA MFS Total Return Portfolio Class 1

      1,611,941        13.81        23.55        83,170,971          1.47       0.40        1.77        -11.28        -10.05  

SAST SA MFS Total Return Portfolio Class 2

      350,983        47.12        51.68        17,902,085          1.32       1.52        1.97        -11.56        -11.16  

SAST SA MFS Total Return Portfolio Class 3

      7,424,416        16.11        17.31        191,224,452          1.28       1.00        2.30        -11.95        -10.80  

SAST SA Mid Cap Index Portfolio Class 1

      33,760        13.15        13.40        448,604          0.99       0.40        0.80        -14.14        -13.80  

SAST SA Mid Cap Index Portfolio Class 3

      3,603,718        12.61        13.25        47,060,604          0.76       1.00        1.95        -15.31        -14.50  

SAST SA Morgan Stanley International Equities Portfolio Class 1

      1,211,682        10.19        14.94        19,070,867          2.52       0.40        1.77        -15.49        -14.32  

SAST SA Morgan Stanley International Equities Portfolio Class 2

      395,694        13.95        15.29        5,983,907          2.21       1.52        1.97        -15.84        -15.47  

SAST SA Morgan Stanley International Equities Portfolio Class 3

      6,447,892        10.14        11.18        85,496,128          2.34       1.00        2.30        -16.13        -15.03  

SAST SA PIMCO RAE International Value Portfolio Class 1

      11,326        8.89        8.96        101,437          4.55       0.40        0.55        -8.66        -8.52  

SAST SA PIMCO RAE International Value Portfolio Class 2

      424,190        16.29        18.10        7,632,433          3.77       1.52        1.97        -10.04        -9.64  

SAST SA PIMCO RAE International Value Portfolio Class 3

      18,942,487        8.94        10.05        240,717,919          3.70       1.00        2.30        -10.49        -9.32  

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 1

      4,214        11.76        11.94        50,314          0.00       0.55        0.80        -18.15        -17.94  

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 3

      65,633,474        11.07        12.23        849,522,148          0.00       1.00        1.95        -19.26        -18.49  

SAST SA PineBridge High-Yield Bond Portfolio Class 1

      699,806        11.28        32.97        24,237,406          5.37       0.40        1.77        -11.40        -10.18  

SAST SA PineBridge High-Yield Bond Portfolio Class 2

      162,532        30.66        33.68        5,432,276          5.40       1.52        1.97        -11.74        -11.35  

SAST SA PineBridge High-Yield Bond Portfolio Class 3

      3,631,385        12.90        14.62        74,369,353          5.20       1.00        2.30        -11.88        -10.73  

SAST SA Putnam International Growth and Income Portfolio Class 1

      965,129        10.80        12.66        17,761,505          1.62       0.40        1.77        -8.34        -7.07  

SAST SA Putnam International Growth and Income Portfolio Class 2

      249,286        16.54        18.09        4,475,062          1.66       1.52        1.97        -8.63        -8.22  

SAST SA Putnam International Growth and Income Portfolio Class 3

      4,830,759        12.26        15.73        72,860,894          1.41       1.00        2.17        -8.97        -7.90  

SAST SA Schroders VCP Global Allocation Portfolio Class 1

      21,109        10.91        11.01        231,134          0.94       0.40        0.55        -18.81        -18.69  

SAST SA Schroders VCP Global Allocation Portfolio Class 3

      34,956,593        10.20        10.78        393,035,155          0.65       1.00        1.95        -20.16        -19.39  

SAST SA Small Cap Index Portfolio Class 1

      35,358        11.39        11.61        407,239          0.59       0.40        0.80        -21.39        -21.07  

SAST SA Small Cap Index Portfolio Class 3

      3,556,335        10.80        11.35        39,818,011          0.53       1.00        1.95        -22.52        -21.78  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 1

      28,195        13.20        13.30        373,044          0.61       0.40        0.55        -18.53        -18.41  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 3

      30,037,106        12.11        12.72        376,668,687          0.34       1.00        1.95        -19.88        -19.12  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 1

      18,230        12.79        12.90        233,339          1.03       0.40        0.55        -19.28        -19.16  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 3

      85,626,716        11.81        12.52        1,119,730,799          0.76       1.00        1.95        -20.54        -19.78  

SAST SA VCP Dynamic Allocation Portfolio Class 1

      31,673        13.02        13.33        418,712          2.66       0.40        0.80        -17.65        -17.32  

SAST SA VCP Dynamic Allocation Portfolio Class 3

      399,592,820        12.20        14.08        6,104,053,442          2.26       1.00        2.15        -18.91        -17.97  

SAST SA VCP Dynamic Strategy Portfolio Class 1

      50,243        13.08        13.20        660,713          2.44       0.40        0.55        -14.77        -14.64  

SAST SA VCP Dynamic Strategy Portfolio Class 3

      317,750,193        12.13        14.06        4,776,685,400          2.07       1.00        2.02        -16.24        -15.38  

SAST SA VCP Index Allocation Portfolio Class 1

      29,243        11.91        12.00        348,849          0.00       0.40        0.55        -17.25        -17.13  

SAST SA VCP Index Allocation Portfolio Class 3

      33,439,491        11.16        11.49        378,580,493          0.00       1.00        1.55        -18.20        -17.75  

SAST SA Wellington Capital Appreciation Portfolio Class 1

      1,633,223        13.37        42.76        277,530,257          0.00       0.40        1.77        -37.46        -36.59  

SAST SA Wellington Capital Appreciation Portfolio Class 2

      231,890        149.30        165.83        37,303,158          0.00       1.40        1.97        -37.66        -37.30  

SAST SA Wellington Capital Appreciation Portfolio Class 3

      16,254,234        25.40        35.58        787,808,448          0.00       1.00        2.30        -37.92        -37.11  

SAST SA Wellington Government and Quality Bond Portfolio Class 1

      2,096,060        9.83        12.62        44,349,510          1.20       0.40        1.77        -14.93        -13.75  

SAST SA Wellington Government and Quality Bond Portfolio Class 2

      777,508        17.25        18.94        14,605,323          1.04       1.52        1.97        -15.23        -14.85  

SAST SA Wellington Government and Quality Bond Portfolio Class 3

      26,815,037        9.37        9.72        355,164,799          0.89       1.00        2.30        -15.63        -14.53  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 1

      156,556        12.79        73.21        11,268,459            0.80       0.40        1.40        -18.15        -17.33  

 

 

82

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2022            For the Year Ended December 31, 2022  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 3

      8,371,316        11.74        12.46        102,395,193          0.64       1.00        1.95        -18.81        -18.04  

VALIC Company I International Equities Index Fund

      338,654        11.52        11.61        3,924,544          2.89       1.10        1.40        -15.71        -15.45  

VALIC Company I International Socially Responsible Fund

      63,789        13.63        14.36        912,078          3.59       1.10        1.40        -17.71        -17.46  

VALIC Company I Mid Cap Index Fund

      209,790        16.51        17.97        3,712,402          1.30       1.10        1.40        -14.56        -14.30  

VALIC Company I Nasdaq-100 Index Fund

      127,395        21.94        25.65        3,160,960          0.23       1.10        1.70        -33.94        -33.54  

VALIC Company I Small Cap Index Fund

      176,269        13.26        15.99        2,741,189          0.73       1.10        1.70        -22.00        -21.53  

VALIC Company I Stock Index Fund

      544,936        17.96        20.25        10,956,779            1.17       1.10        1.70        -19.70        -19.22  

 

 

                                                                                    
     December 31, 2021            For the Year Ended December 31, 2021  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

American Funds IS American High-Income Trust Class 3

      79,121        127.86        130.98        10,355,316          4.23       1.30        1.40        7.09        7.20  

American Funds IS Asset Allocation Fund Class 2

      1,512,729        37.89        39.76        59,927,723          1.53       1.52        1.77        13.08        13.37  

American Funds IS Asset Allocation Fund Class 3

      296,081        119.65        122.57        36,256,613          1.61       1.30        1.40        13.62        13.74  

American Funds IS Capital Income Builder Class 4

      224,159        12.74        13.74        3,068,555          2.48       1.10        1.70        12.75        13.43  

American Funds IS Global Growth Fund Class 2

      2,694,890        69.65        75.98        203,185,912          0.34       1.52        1.97        14.15        14.66  

American Funds IS Growth Fund Class 2

      3,967,897        88.86        96.89        381,387,835          0.22       1.52        1.97        19.61        20.15  

American Funds IS Growth Fund Class 3

      330,617        891.32        913.12        301,620,205          0.28       1.30        1.40        20.37        20.49  

American Funds IS Growth-Income Fund Class 2

      5,091,815        52.36        57.13        288,457,612          1.11       1.52        1.97        21.68        22.22  

American Funds IS Growth-Income Fund Class 3

      382,859        424.16        434.54        166,168,058          1.17       1.30        1.40        22.46        22.59  

American Funds IS International Fund Class 3

      252,846        81.46        83.46        21,070,826          2.38       1.30        1.40        -2.76        -2.66  

American Funds IS U.S. Government Securities Fund Class 3

      217,102        43.62        44.68        9,693,183          1.32       1.30        1.40        -2.00        -1.91  

American Funds IS Ultra-Short Bond Fund Class 3

      240,234        18.78        19.24        4,620,838          0.00       1.30        1.40        -1.83        -1.74  

BlackRock 60/40 Target Allocation ETF V.I. Fund Class III

      26,189        14.68        16.02        409,240          2.60       1.10        1.70        9.82        10.48  

BlackRock Global Allocation V.I. Fund Class III

      61,912        13.82        15.00        909,353          0.66       1.10        1.70        4.62        5.25  

Columbia VP Dividend Opportunity Fund Class 1

      68,160        25.62        27.00        1,830,331          0.00       1.52        1.77        23.95        24.26  

Columbia VP Emerging Markets Bond Fund Class 2

      7,292           11.76        85,769          3.64          1.10           -3.52  

Columbia VP Income Opportunities Fund Class 1

      267,729        27.23        30.54        7,986,919          8.99       1.52        2.17        2.25        2.92  

Columbia VP Large Cap Growth Fund Class 1

      988,128        27.34        28.12        27,628,192          0.00       1.52        2.02        26.16        26.79  

Columbia VP Limited Duration Credit Fund Class 2

      37,142        10.33        10.74        395,857          2.63       1.10        1.70        -2.52        -1.93  

Columbia VP Overseas Core Fund Class 2

      107,331        14.03        14.23        1,524,646          1.14       1.52        1.77        7.82        8.09  

Columbia VP Select Mid Cap Growth Opportunity Fund Class 1

      10,488        34.94        39.45        408,001          0.00       1.52        1.77        14.52        14.81  

Columbia VP Small Company Growth Fund Class 1

      19,502        48.58        51.21        992,810          0.00       1.52        1.77        -4.61        -4.37  

CTIVP® Principal Blue Chip Growth Fund Class 1

      88,671        25.54        25.91        2,294,119          0.00       1.52        1.77        16.49        16.78  

Delaware Ivy VIP Asset Strategy Class II

      27,274        13.10        14.09        380,069          1.41       1.10        1.70        8.58        9.23  

FTVIP Franklin Allocation VIP Fund Class 1

      1,248           13.45        16,786          0.63          0.55           11.20  

FTVIP Franklin Allocation VIP Fund Class 2

      2,251,672        16.24        16.77        40,939,689          1.71       1.00        2.30        9.14        10.57  

FTVIP Franklin Income VIP Fund Class 1

      98,610        12.90        13.09        1,284,343          4.60       0.40        0.80        16.07        16.54  

FTVIP Franklin Income VIP Fund Class 2

      7,072,748        15.32        16.49        131,253,224          4.68       1.00        2.30        14.10        15.59  

FTVIP Franklin Strategic Income VIP Fund Class 2

      100,068        10.59        11.04        1,087,844          3.14       1.10        1.70        0.39        0.99  

Goldman Sachs VIT Government Money Market Fund Institutional Shares

      934,543        9.76        10.31        9,137,517          0.01       0.40        1.52        -1.50        -0.39  

Goldman Sachs VIT Government Money Market Fund Service Shares

      22,490,562        9.23        9.85        217,567,229          0.01       1.00        2.15        -2.12        -0.99  

Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Advisor Shares

      50,186        9.85        10.26        512,147          1.15       1.10        1.40        3.20        3.51  

Goldman Sachs VIT Trend Driven Allocation Fund Service Shares

      1,163        12.67        13.57        15,444          0.00       1.10        1.35        14.61        14.90  

Invesco V.I. American Franchise Fund Series I

      3,447        19.51        19.80        68,054          0.00       0.40        0.80        11.03        11.48  

Invesco V.I. American Franchise Fund Series II

      2,185,893        34.58        40.44        99,674,218          0.00       1.00        2.30        9.11        10.54  

Invesco V.I. Balanced-Risk Allocation Fund Series II

      53,926        12.84        14.20        754,933          2.80       1.10        1.70        7.42        8.07  

Invesco V.I. Comstock Fund Series I

      16,358        14.17        14.38        234,842          2.36       0.40        0.80        32.30        32.83  

Invesco V.I. Comstock Fund Series II

      11,277,015        21.31        23.16        325,408,335          1.68       1.00        2.30        30.02        31.72  

Invesco V.I. Growth and Income Fund Series I

      85,053        13.95        14.16        1,197,253          1.71       0.40        0.80        27.48        27.99  

Invesco V.I. Growth and Income Fund Series II

      13,083,624        21.11        22.93        398,415,926          1.37       1.00        2.30        25.28        26.91  

Lord Abbett Bond Debenture Portfolio Class VC

      110,186        12.40        13.50        1,473,942          2.96       1.10        1.70        1.54        2.15  

Lord Abbett Fundamental Equity Portfolio Class VC

      9,094        16.55        17.43        156,392          0.90       1.10        1.40        25.54        25.92  

Lord Abbett Growth and Income Portfolio Class VC

      6,688,431        15.12        20.52        177,915,242          1.04       0.40        2.30        26.09        28.50  

Lord Abbett Mid Cap Stock Portfolio Class VC

      449,581        29.09        30.56        13,697,365          0.58       1.52        1.77        26.44        26.76  

Lord Abbett Short Duration Income Portfolio Class VC

      177,884        10.33        10.80        1,915,881          1.79       1.10        1.70        -1.07        -0.47  

Morgan Stanley VIF Global Infrastructure Portfolio Class II

      72,067        12.53        13.81        983,518          1.96       1.10        1.70        12.08        12.76  

Neuberger Berman AMT US Equity Index PutWrite Strategy Portfolio Class S

      46,376        12.51        12.72        585,811          0.27       1.10        1.40        16.30        16.65  

PIMCO All Asset Portfolio Advisor Class

      5,552        13.64        13.79        76,417          12.08       1.10        1.35        14.49        14.77  

PIMCO Dynamic Bond Portfolio Advisor Class

      104,353        10.73        11.16        1,159,420          1.92       1.10        1.70        -0.52        0.08  

PIMCO Emerging Markets Bond Portfolio Advisor Class

      218,102        10.30        10.43        2,294,447          4.29       1.00        1.55        -4.16        -3.63  

PIMCO Total Return Portfolio Advisor Class

      16,444,965        10.20        10.50        171,305,014          1.74       1.00        1.80        -3.12        -2.35  

PIMCO Total Return Portfolio Institutional Class

      75,950        10.49        10.71        805,561          1.64       0.40        0.80        -1.91        -1.51  

PVC Core Plus Bond Account Class 1

      409,626        10.77        10.93        4,461,991          2.55       1.40        1.95        -2.37        -1.83  

PVC Diversified International Account Class 1

      93,837        9.87        11.44        1,029,381          1.30       1.40        1.95        7.63        8.23  

PVC Equity Income Account Class 1

      380,810        28.07        30.46        11,478,756          1.94       1.40        1.80        20.28        20.76  

PVC Equity Income Account Class 2

      256,728        25.85        27.11        7,061,790          1.82       1.52        1.95        19.79        20.30  

PVC Government & High Quality Bond Account Class 1

      269,791        7.66        8.96        2,303,058          2.35       1.40        1.95        -3.23        -2.69  

PVC Large Cap Growth Account I Class 1

      89,763        18.19        18.45        1,650,371          0.00       1.40        1.95        19.54        20.20  

PVC MidCap Account Class 1

      46,189        45.90        49.77        2,254,926            0.14       1.40        1.80        23.29        23.78  

 

 

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Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2021            For the Year Ended December 31, 2021  
        Unit Value ($)(a)(f)      Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

PVC MidCap Account Class 2

      16,211        42.23        45.77        733,254          0.00       1.55        1.95        22.78        23.27  

PVC Principal Capital Appreciation Account Class 1

      256,701        45.44        49.30        12,563,366          0.83       1.40        1.80        25.54        26.05  

PVC Principal Capital Appreciation Account Class 2

      53,981        41.76        45.26        2,426,676          0.76       1.55        1.95        25.04        25.54  

PVC Real Estate Securities Account Class 1

      9,548        53.53        55.89        532,224          1.44       1.40        1.55        38.28        38.49  

PVC Real Estate Securities Account Class 2

      5,210        50.74        52.73        273,243          1.22       1.55        1.70        37.68        37.89  

PVC SAM Balanced Portfolio Class 1

      1,181,363        21.60        23.45        26,944,579          1.59       1.40        1.80        11.71        12.16  

PVC SAM Balanced Portfolio Class 2

      1,161,402        19.98        21.78        24,902,391          1.38       1.52        1.95        11.20        11.68  

PVC SAM Conservative Balanced Portfolio Class 1

      175,863        13.67        14.82        2,545,781          1.89       1.40        1.80        7.75        8.18  

PVC SAM Conservative Balanced Portfolio Class 2

      190,341        12.66        19.22        2,610,010          1.72       1.52        1.95        7.36        7.83  

PVC SAM Conservative Growth Portfolio Class 1

      538,693        25.19        27.32        14,218,538          1.17       1.40        1.80        15.65        16.11  

PVC SAM Conservative Growth Portfolio Class 2

      561,163        23.23        25.28        13,967,600          1.05       1.52        1.95        15.18        15.67  

PVC SAM Flexible Income Portfolio Class 1

      266,989        14.29        15.53        4,041,977          2.53       1.40        1.80        4.98        5.40  

PVC SAM Flexible Income Portfolio Class 2

      308,145        13.25        17.75        4,413,468          2.07       1.52        1.95        4.56        5.01  

PVC SAM Strategic Growth Portfolio Class 1

      114,573        29.30        31.74        3,563,215          0.97       1.40        1.80        17.72        18.20  

PVC SAM Strategic Growth Portfolio Class 2

      224,603        27.03        29.50        6,460,162          0.81       1.52        1.95        17.23        17.73  

PVC Short-Term Income Account Class 1

      231,456        6.99        8.10        1,763,627          1.50       1.40        1.95        -2.63        -2.10  

PVC SmallCap Account Class 1

      28,923        20.78        22.51        628,926          0.33       1.40        1.80        17.98        18.45  

PVC SmallCap Account Class 2

      17,082        19.19        20.73        352,316          0.16       1.55        1.95        17.55        18.02  

SST SA Allocation Balanced Portfolio Class 1

      12,565        14.34        14.44        180,689          1.26       0.40        0.55        6.96        7.12  

SST SA Allocation Balanced Portfolio Class 3

      8,817,411        13.54        17.50        173,653,436          0.95       1.00        2.30        4.87        6.24  

SST SA Allocation Growth Portfolio Class 1

      56,095        17.20        17.54        979,000          2.22       0.40        0.80        15.05        15.51  

SST SA Allocation Growth Portfolio Class 3

      10,867,721        16.22        23.26        276,655,119          2.07       1.00        2.02        13.38        14.54  

SST SA Allocation Moderate Growth Portfolio Class 1

      16,906        16.26        16.38        276,599          1.98       0.40        0.55        12.15        12.31  

SST SA Allocation Moderate Growth Portfolio Class 3

      11,679,436        15.20        19.92        261,248,904          1.78       1.00        2.30        9.91        11.35  

SST SA Allocation Moderate Portfolio Class 1

      9,690        15.52        15.63        151,290          2.33       0.40        0.55        10.12        10.28  

SST SA Allocation Moderate Portfolio Class 3

      9,863,746        14.56        19.10        212,129,289          1.91       1.00        2.30        7.91        9.33  

SST SA American Century Inflation Protection Portfolio Class 1

      16,505        11.61        11.84        194,121          1.76       0.40        0.80        3.72        4.13  

SST SA American Century Inflation Protection Portfolio Class 3

      25,499,567        11.27        11.29        321,866,138          2.39       1.00        2.30        1.87        3.20  

SST SA Columbia Focused Value Portfolio Class 3

      7,377        18.00        19.93        146,360          3.78       1.10        1.70        23.19        23.93  

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3

      16,283        10.66        11.37        182,236          3.65       1.10        1.70        -3.35        -2.76  

SST SA Multi-Managed International Equity Portfolio Class 3

      35,476        13.93        14.02        495,238          2.54       1.10        1.40        9.38        9.71  

SST SA Multi-Managed Large Cap Growth Portfolio Class 3

      28,388        25.33        29.30        756,341          0.00       1.10        1.70        14.25        14.94  

SST SA Multi-Managed Large Cap Value Portfolio Class 3

      12,115        16.27        17.15        200,770          2.90       1.10        1.40        21.85        22.22  

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3

      12,865        24.25        26.22        326,651          0.00       1.10        1.40        7.65        7.97  

SST SA Multi-Managed Mid Cap Value Portfolio Class 3

      19,084        16.37        17.61        327,800          1.60       1.10        1.40        25.33        25.70  

SST SA Multi-Managed Small Cap Portfolio Class 3

      13,358        16.89        18.71        235,525          0.02       1.10        1.40        21.58        21.95  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 1

      18,179        16.88        17.01        307,143          2.65       0.40        0.55        17.84        18.02  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 3

      5,929,487        15.80        17.25        100,839,491          2.27       1.00        1.70        16.21        17.02  

SST SA T. Rowe Price Growth Stock Portfolio Class 3

      19,936        27.89        29.67        585,981          0.00       1.10        1.40        17.85        18.20  

SAST SA AB Growth Portfolio Class 1

      7,330,606        23.02        47.12        552,124,736          0.00       0.40        1.77        26.54        28.29  

SAST SA AB Growth Portfolio Class 2

      367,252        160.52        180.59        63,729,403          0.00       1.40        1.97        26.09        26.81  

SAST SA AB Growth Portfolio Class 3

      6,497,542        45.17        50.15        547,212,434          0.00       1.00        2.30        25.55        27.19  

SAST SA AB Small & Mid Cap Value Portfolio Class 1

      69,775        14.16        14.37        997,651          1.04       0.40        0.80        35.32        35.86  

SAST SA AB Small & Mid Cap Value Portfolio Class 2

      210,906        49.32        53.83        11,275,235          0.55       1.52        1.97        33.56        34.16  

SAST SA AB Small & Mid Cap Value Portfolio Class 3

      9,773,990        21.85        28.52        382,459,340          0.46       1.00        2.30        32.98        34.72  

SAST SA American Funds Asset Allocation Portfolio Class 1

      508,474        16.45        16.57        8,392,904          1.05       0.40        0.55        14.49        14.66  

SAST SA American Funds Asset Allocation Portfolio Class 3

      67,513,730        19.98        22.13        1,711,853,203          1.09       1.00        2.30        12.19        13.66  

SAST SA American Funds Global Growth Portfolio Class 1

      137,939        17.70        17.96        2,464,739          0.51       0.40        0.80        15.46        15.92  

SAST SA American Funds Global Growth Portfolio Class 3

      12,033,355        27.82        32.56        435,947,716          0.06       1.00        2.30        13.47        14.96  

SAST SA American Funds Growth Portfolio Class 1

      102,121        22.35        22.68        2,304,232          0.23       0.40        0.80        20.95        21.44  

SAST SA American Funds Growth Portfolio Class 3

      15,528,778        40.22        43.74        767,479,511          0.03       1.00        2.30        18.92        20.48  

SAST SA American Funds Growth-Income Portfolio Class 1

      119,461        16.43        16.68        1,981,618          1.62       0.40        0.80        23.09        23.58  

SAST SA American Funds Growth-Income Portfolio Class 3

      11,885,245        27.56        28.80        384,442,487          1.01       1.00        2.30        20.87        22.45  

SAST SA American Funds VCP Managed Allocation Portfolio Class 1

      61,003        15.51        15.62        947,039          2.16       0.40        0.55        14.36        14.53  

SAST SA American Funds VCP Managed Allocation Portfolio Class 3

      106,954,856        14.55        17.14        2,001,901,761          1.23       1.00        2.30        12.12        13.59  

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 3

      2,357,522        11.87        11.95        28,078,091          2.14       1.00        1.55        11.58        12.20  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 1

      61,732        13.28        13.54        830,111          1.87       0.40        0.80        6.99        7.42  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 3

      55,193,356        12.61        12.85        744,724,890          0.85       1.00        2.15        5.32        6.54  

SAST SA DFA Ultra Short Bond Portfolio Class 1

      2,037,617        10.21        10.99        23,523,686          0.05       0.40        1.77        -2.27        -0.92  

SAST SA DFA Ultra Short Bond Portfolio Class 2

      803,813        10.30        11.23        8,990,127          0.00       1.52        1.97        -2.61        -2.17  

SAST SA DFA Ultra Short Bond Portfolio Class 3

      19,000,018        7.44        9.29        172,700,500          0.00       1.00        2.30        -3.04        -1.77  

SAST SA Emerging Markets Equity Index Portfolio Class 1

      9,080        11.23        11.40        103,054          1.06       0.40        0.80        -4.08        -3.69  

SAST SA Emerging Markets Equity Index Portfolio Class 3

      1,020,696        10.83        11.05        11,167,585          1.22       1.00        1.55        -5.06        -4.54  

SAST SA Federated Hermes Corporate Bond Portfolio Class 1

      1,413,125        12.70        34.18        49,281,795          2.97       0.40        1.77        -1.16        0.20  

SAST SA Federated Hermes Corporate Bond Portfolio Class 2

      438,755        32.00        34.97        15,232,244          2.72       1.52        1.97        -1.53        -1.08  

SAST SA Federated Hermes Corporate Bond Portfolio Class 3

      35,807,847        13.20        17.78        810,235,712          3.06       1.00        2.30        -1.95        -0.66  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 1

      45,820        15.07        15.23        694,866          0.04       0.40        0.80        11.37        11.82  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 3

      572,953        14.68        14.90        8,474,707          0.00       1.00        1.55        10.22        10.83  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1

      363,900        17.11        54.45        20,746,998          1.46       0.40        1.77        36.78        38.67  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 2

      84,750        51.03        55.69        4,659,985          0.00       1.52        1.97        36.27        36.89  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 3

      5,911,434        17.49        19.47        165,080,314          0.00       1.00        2.30        35.75        37.52  

SAST SA Fixed Income Index Portfolio Class 1

      67           11.21        750          0.00          0.80           -2.84  

SAST SA Fixed Income Index Portfolio Class 3

      5,991,408        10.64        11.01        65,185,453            0.00       1.00        1.80        -3.96        -3.19  

 

 

84

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2021            For the Year Ended December 31, 2021  
        Unit Value ($)(a)(f)      Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

SAST SA Fixed Income Intermediate Index Portfolio Class 3

      3,006,389        10.19        10.54        31,311,043          1.10       1.00        1.80        -3.54        -2.76  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1

      3,356,988        14.78        31.60        321,179,462          1.88       0.40        1.77        27.59        29.35  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 2

      495,266        85.57        96.12        45,971,585          1.74       1.40        1.97        27.17        27.89  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 3

      8,973,492        22.48        23.26        386,641,244          1.67       1.00        2.30        26.59        28.24  

SAST SA Franklin Small Company Value Portfolio Class 1

      3,178        14.35        14.56        46,018          0.84       0.40        0.80        24.32        24.82  

SAST SA Franklin Small Company Value Portfolio Class 3

      6,482,397        20.78        23.47        163,153,424          0.94       1.00        2.30        22.16        23.76  

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 1

      1,347        14.76        14.89        20,029          0.05       0.40        0.80        24.67        25.17  

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 3

      364,136        14.43        14.56        5,286,453          0.00       1.15        1.55        23.49        23.98  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1

      579,681        17.00        45.92        27,512,124          2.29       0.40        1.77        21.92        23.60  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 2

      127,778        43.12        47.01        5,953,628          2.17       1.52        1.97        21.41        21.96  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 3

      4,506,856        26.44        35.20        183,312,506          2.35       1.00        2.30        20.94        22.52  

SAST SA Franklin Tactical Opportunities Portfolio Class 1

      2,926        13.93        14.17        41,245          1.16       0.40        0.80        14.25        14.70  

SAST SA Franklin Tactical Opportunities Portfolio Class 3

      5,092,788        13.27        13.67        68,742,945          1.01       1.00        1.70        12.90        13.69  

SAST SA Global Index Allocation 60/40 Portfolio Class 1

      7,415           13.49        100,030          1.44          0.40           9.43  

SAST SA Global Index Allocation 60/40 Portfolio Class 3

      5,039,140        12.74        13.08        65,253,076          1.41       1.00        1.70        7.77        8.53  

SAST SA Global Index Allocation 75/25 Portfolio Class 1

      8,592           13.86        119,095          1.65          0.55           12.03  

SAST SA Global Index Allocation 75/25 Portfolio Class 3

      4,899,011        13.05        13.51        65,543,601          1.46       1.00        1.95        10.25        11.30  

SAST SA Global Index Allocation 90/10 Portfolio Class 1

      298,288        14.09        14.30        4,255,242          1.17       0.40        0.80        14.82        15.28  

SAST SA Global Index Allocation 90/10 Portfolio Class 3

      17,681,240        13.51        13.86        242,687,504          1.00       1.00        1.70        13.53        14.32  

SAST SA Goldman Sachs Global Bond Portfolio Class 1

      725,359        11.22        14.40        16,525,915          2.37       0.40        1.77        -8.94        -7.68  

SAST SA Goldman Sachs Global Bond Portfolio Class 2

      178,479        20.57        22.42        3,961,222          2.17       1.52        1.97        -9.20        -8.79  

SAST SA Goldman Sachs Global Bond Portfolio Class 3

      16,534,144        10.23        11.21        231,293,179          2.36       1.00        2.30        -9.63        -8.45  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 1

      555           14.23        7,891          0.42          0.40           14.57  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 3

      2,187,161        13.18        13.72        29,651,190          0.25       1.00        1.95        12.45        13.52  

SAST SA Index Allocation 60/40 Portfolio Class 1

      48,161           15.99        770,268          0.32          0.55           12.76  

SAST SA Index Allocation 60/40 Portfolio Class 3

      11,965,926        14.93        15.45        182,446,537          0.08       1.00        1.70        11.15        11.93  

SAST SA Index Allocation 80/20 Portfolio Class 1

      133,959        17.35        17.69        2,356,668          1.15       0.40        0.80        17.65        18.12  

SAST SA Index Allocation 80/20 Portfolio Class 3

      21,314,934        16.20        16.97        356,799,103          1.09       1.00        1.95        15.95        17.05  

SAST SA Index Allocation 90/10 Portfolio Class 1

      381,020        18.05        18.41        6,952,109          1.19       0.40        0.80        19.93        20.41  

SAST SA Index Allocation 90/10 Portfolio Class 3

      58,148,904        16.86        17.67        1,013,852,694          1.08       1.00        1.95        18.29        19.41  

SAST SA International Index Portfolio Class 1

      103,939        11.99        12.10        1,257,427          1.35       0.55        0.80        9.89        10.17  

SAST SA International Index Portfolio Class 3

      1,309,733        11.86        12.22        15,815,366          1.47       1.00        1.70        8.60        9.37  

SAST SA Invesco Growth Opportunities Portfolio Class 1

      478,702        19.42        21.34        10,736,250          0.00       0.40        1.77        5.44        6.90  

SAST SA Invesco Growth Opportunities Portfolio Class 2

      173,669        19.98        21.86        3,758,687          0.00       1.52        1.97        5.10        5.57  

SAST SA Invesco Growth Opportunities Portfolio Class 3

      4,708,484        29.68        37.28        145,380,100          0.00       1.00        2.30        4.67        6.04  

SAST SA Janus Focused Growth Portfolio Class 1

      374,703        22.24        47.56        18,525,819          0.00       0.40        1.77        21.15        22.82  

SAST SA Janus Focused Growth Portfolio Class 2

      237,666        46.27        48.62        11,444,891          0.00       1.52        1.77        20.99        21.30  

SAST SA Janus Focused Growth Portfolio Class 3

      3,337,047        34.34        39.51        150,426,511          0.00       1.00        2.30        20.19        21.76  

SAST SA JPMorgan Diversified Balanced Portfolio Class 1

      3,641,623        15.45        20.11        135,833,732          0.96       0.40        1.77        9.85        11.37  

SAST SA JPMorgan Diversified Balanced Portfolio Class 2

      612,632        33.38        36.43        22,112,654          0.82       1.52        1.97        9.44        9.93  

SAST SA JPMorgan Diversified Balanced Portfolio Class 3

      8,913,640        18.65        20.91        227,211,135          0.59       1.00        2.30        9.01        10.43  

SAST SA JPMorgan Emerging Markets Portfolio Class 1

      774,865        11.48        23.13        18,035,326          1.78       0.40        1.77        -0.58        0.79  

SAST SA JPMorgan Emerging Markets Portfolio Class 2

      136,018        21.65        23.64        3,187,901          1.64       1.52        1.97        -1.01        -0.56  

SAST SA JPMorgan Emerging Markets Portfolio Class 3

      6,808,401        12.59        12.96        117,004,799          1.64       1.00        2.30        -1.40        -0.11  

SAST SA JPMorgan Equity-Income Portfolio Class 1

      1,527,085        15.91        26.89        129,882,470          1.86       0.40        1.77        23.61        25.31  

SAST SA JPMorgan Equity-Income Portfolio Class 2

      139,401        79.11        86.54        11,945,501          1.78       1.52        1.97        23.16        23.71  

SAST SA JPMorgan Equity-Income Portfolio Class 3

      5,976,841        24.34        25.85        195,974,711          1.81       1.00        2.30        22.63        24.24  

SAST SA JPMorgan Global Equities Portfolio Class 1

      866,802        14.15        43.91        39,692,292          1.73       0.40        1.77        21.16        22.83  

SAST SA JPMorgan Global Equities Portfolio Class 2

      76,386        41.25        46.10        3,425,290          1.60       1.40        1.97        20.71        21.39  

SAST SA JPMorgan Global Equities Portfolio Class 3

      1,781,867        18.37        19.70        42,978,340          1.71       1.00        2.30        20.19        21.76  

SAST SA JPMorgan Large Cap Core Portfolio Class 1

      458,833        17.70        60.09        29,020,788          0.65       0.80        1.77        25.54        26.76  

SAST SA JPMorgan Large Cap Core Portfolio Class 2

      64,983        56.22        61.47        3,962,319          0.50       1.52        1.97        25.13        25.69  

SAST SA JPMorgan Large Cap Core Portfolio Class 3

      1,940,743        27.09        28.73        73,874,805          0.46       1.00        2.30        24.58        26.21  

SAST SA JPMorgan MFS Core Bond Portfolio Class 1

      1,231,070        11.89        30.85        39,357,534          2.46       0.40        1.77        -2.66        -1.31  

SAST SA JPMorgan MFS Core Bond Portfolio Class 2

      238,801        29.91        31.48        7,451,186          2.30       1.52        1.77        -2.81        -2.57  

SAST SA JPMorgan MFS Core Bond Portfolio Class 3

      39,754,960        11.34        13.70        693,118,719          2.33       1.00        2.30        -3.40        -2.14  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1

      1,789,827        21.04        29.36        89,475,907          0.00       0.40        1.77        8.89        10.39  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 2

      445,001        46.05        51.67        22,144,133          0.00       1.40        1.97        8.50        9.12  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 3

      6,302,403        34.94        45.25        319,929,845          0.00       1.00        2.30        8.03        9.44  

SAST SA Large Cap Growth Index Portfolio Class 1

      39,937        21.43        21.75        863,859          0.65       0.40        0.80        30.60        31.13  

SAST SA Large Cap Growth Index Portfolio Class 3

      1,319,148        20.55        21.08        27,535,439          0.62       1.00        1.70        29.07        29.97  

SAST SA Large Cap Index Portfolio Class 1

      234,357        19.23        19.43        4,535,010          1.46       0.55        0.80        27.32        27.64  

SAST SA Large Cap Index Portfolio Class 3

      3,309,792        18.31        18.87        61,565,300          1.44       1.00        1.70        25.90        26.79  

SAST SA Large Cap Value Index Portfolio Class 1

      41,057        15.13        15.35        626,627          2.48       0.40        0.80        23.41        23.91  

SAST SA Large Cap Value Index Portfolio Class 3

      1,781,257        14.50        14.87        26,239,547          2.92       1.00        1.70        21.98        22.83  

SAST SA MFS Blue Chip Growth Portfolio Class 1

      448,218        20.66        24.19        11,455,765          0.20       0.40        1.77        26.72        28.47  

SAST SA MFS Blue Chip Growth Portfolio Class 2

      162,698        23.56        24.79        3,990,196          0.00       1.52        1.77        26.50        26.82  

SAST SA MFS Blue Chip Growth Portfolio Class 3

      3,664,872        35.17        36.87        130,385,597          0.00       1.00        2.30        25.78        27.42  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 1

      649,326        17.74        35.60        52,630,757          0.00       0.55        1.77        24.68        26.21  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 2

      108,553        72.94        79.41        8,545,275          0.00       1.52        1.97        24.25        24.81  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 3

      5,339,734        27.68        32.37        237,622,610          0.00       1.00        2.30        23.71        25.33  

SAST SA MFS Total Return Portfolio Class 1

      1,803,122        15.36        26.54        105,133,724          0.00       0.40        1.77        12.03        13.58  

SAST SA MFS Total Return Portfolio Class 2

      393,747        53.28        58.18        22,613,618            1.31       1.52        1.97        11.69        12.19  

 

 

85

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2021            For the Year Ended December 31, 2021  
        Unit Value ($)(a)(f)      Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

SAST SA MFS Total Return Portfolio Class 3

      7,399,339        18.06        19.66        220,969,315          1.32       1.00        2.30        11.16        12.61  

SAST SA Mid Cap Index Portfolio Class 1

      26,638        15.32        15.54        411,197          1.20       0.40        0.80        23.18        23.67  

SAST SA Mid Cap Index Portfolio Class 3

      2,774,022        14.88        15.49        42,488,082          0.83       1.00        1.95        21.41        22.57  

SAST SA Morgan Stanley International Equities Portfolio Class 1

      1,374,936        11.89        17.68        25,549,281          1.22       0.40        1.77        2.51        3.92  

SAST SA Morgan Stanley International Equities Portfolio Class 2

      503,680        16.58        18.08        9,027,416          1.09       1.52        1.97        2.09        2.55  

SAST SA Morgan Stanley International Equities Portfolio Class 3

      7,385,513        12.09        13.16        116,005,637          1.03       1.00        2.30        1.69        3.02  

SAST SA PIMCO RAE International Value Portfolio Class 1

      9,949        9.74        9.79        97,402          2.76       0.40        0.55        8.00        8.16  

SAST SA PIMCO RAE International Value Portfolio Class 2

      486,034        18.11        20.03        9,671,895          2.10       1.52        1.97        6.33        6.81  

SAST SA PIMCO RAE International Value Portfolio Class 3

      22,521,709        9.99        11.09        317,011,546          2.00       1.00        2.30        5.90        7.29  

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 1

      4,621        14.37        14.55        67,227          0.00       0.55        0.80        7.50        7.77  

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 3

      71,728,113        13.58        14.88        1,142,793,787          0.00       1.00        2.15        5.77        6.99  

SAST SA PineBridge High-Yield Bond Portfolio Class 1

      789,289        12.56        37.22        30,855,246          4.85       0.40        1.77        4.16        5.60  

SAST SA PineBridge High-Yield Bond Portfolio Class 2

      177,171        34.74        38.00        6,690,260          4.76       1.52        1.97        3.79        4.26  

SAST SA PineBridge High-Yield Bond Portfolio Class 3

      3,963,299        14.45        16.59        91,850,041          0.00       1.00        2.30        3.22        4.57  

SAST SA Putnam International Growth and Income Portfolio Class 1

      1,061,459        11.62        13.81        21,259,331          2.03       0.40        1.77        12.97        14.53  

SAST SA Putnam International Growth and Income Portfolio Class 2

      230,112        18.11        19.71        4,486,388          1.90       1.52        1.97        12.61        13.12  

SAST SA Putnam International Growth and Income Portfolio Class 3

      5,446,012        10.27        13.32        91,553,091          1.80       1.00        2.30        12.08        13.54  

SAST SA Schroders VCP Global Allocation Portfolio Class 1

      21,540        13.44        13.54        290,293          0.70       0.40        0.55        12.02        12.19  

SAST SA Schroders VCP Global Allocation Portfolio Class 3

      37,680,947        12.65        13.34        527,290,201          0.36       1.00        2.15        10.01        11.28  

SAST SA Small Cap Index Portfolio Class 1

      41,399        14.49        14.70        605,128          0.76       0.40        0.80        13.24        13.70  

SAST SA Small Cap Index Portfolio Class 3

      2,729,065        13.94        14.52        39,157,430          0.48       1.00        1.95        11.64        12.70  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 1

      22,699        16.20        16.30        368,631          0.00       0.40        0.55        15.68        15.85  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 3

      27,209,293        15.11        15.73        422,992,290          0.00       1.00        1.95        13.76        14.85  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 1

      19,170        15.84        15.96        303,938          0.57       0.40        0.55        11.99        12.16  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 3

      87,843,830        14.72        15.58        1,436,183,196          0.88       1.00        2.15        9.91        11.18  

SAST SA VCP Dynamic Allocation Portfolio Class 1

      32,126        15.81        16.13        514,441          2.28       0.40        0.80        8.70        9.13  

SAST SA VCP Dynamic Allocation Portfolio Class 3

      447,897,380        14.88        17.36        8,368,908,213          1.54       1.00        2.15        6.99        8.22  

SAST SA VCP Dynamic Strategy Portfolio Class 1

      52,465        15.35        15.46        808,730          2.22       0.40        0.55        9.77        9.93  

SAST SA VCP Dynamic Strategy Portfolio Class 3

      362,391,923        14.34        16.60        6,460,368,886          1.46       1.00        2.15        7.74        8.99  

SAST SA VCP Index Allocation Portfolio Class 1

      23,971        14.39        14.48        345,048          1.92       0.40        0.55        13.70        13.87  

SAST SA VCP Index Allocation Portfolio Class 3

      32,666,989        13.41        13.96        450,837,287          0.97       1.00        1.95        11.80        12.86  

SAST SA Wellington Capital Appreciation Portfolio Class 1

      1,825,027        21.09        68.37        498,540,110          0.00       0.40        1.77        3.77        5.21  

SAST SA Wellington Capital Appreciation Portfolio Class 2

      257,219        239.50        264.50        66,095,216          0.00       1.40        1.97        3.43        4.02  

SAST SA Wellington Capital Appreciation Portfolio Class 3

      13,086,656        40.38        57.31        1,051,002,049          0.00       1.00        2.30        2.97        4.32  

SAST SA Wellington Government and Quality Bond Portfolio Class 1

      2,247,157        11.40        14.83        56,597,870          1.56       0.40        1.77        -3.58        -2.25  

SAST SA Wellington Government and Quality Bond Portfolio Class 2

      895,596        20.35        22.24        19,759,351          1.34       1.52        1.97        -3.94        -3.51  

SAST SA Wellington Government and Quality Bond Portfolio Class 3

      29,835,161        10.97        11.52        466,458,873          1.36       1.00        2.30        -4.33        -3.08  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 1

      171,355        15.46        89.44        15,161,435          0.29       0.40        1.40        6.16        7.22  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 3

      7,575,115        14.65        15.20        113,361,839          0.19       1.00        1.70        5.66        6.40  

VALIC Company I International Equities Index Fund

      359,492        13.67        13.73        4,925,820          1.28       1.10        1.40        9.49        9.81  

VALIC Company I International Socially Responsible Fund

      74,163        16.56        17.40        1,279,105          1.78       1.10        1.40        10.88        11.22  

VALIC Company I Mid Cap Index Fund

      243,905        19.33        20.97        5,003,626          1.09       1.10        1.40        22.60        22.96  

VALIC Company I Nasdaq-100 Index Fund

      126,248        33.22        38.60        4,701,317          0.29       1.10        1.70        24.79        25.54  

VALIC Company I Small Cap Index Fund

      187,712        17.00        20.38        3,673,749          0.82       1.10        1.70        12.51        13.19  

VALIC Company I Stock Index Fund

      598,532        22.37        25.07        14,866,009            1.47       1.10        1.70        26.19        26.95  

 

 

                                                                                    
     December 31, 2020            For the Year Ended December 31, 2020  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

American Funds IS American High-Income Trust Class 3

      81,361        119.39        122.18        9,934,575          8.03       1.30        1.40        6.43        6.54  

American Funds IS Asset Allocation Fund Class 2

      1,664,820        33.51        35.07        58,193,929          1.56       1.52        1.77        10.48        10.76  

American Funds IS Asset Allocation Fund Class 3

      303,529        105.30        107.77        32,680,405          1.59       1.30        1.40        10.94        11.05  

American Funds IS Capital Income Builder Class 4

      250,888        11.30        12.11        3,027,097          2.39       1.10        1.70        2.36        2.98  

American Funds IS Global Growth Fund Class 2

      3,068,491        61.02        66.26        201,838,643          0.32       1.52        1.97        27.92        28.50  

American Funds IS Growth Fund Class 2

      4,454,709        74.29        80.64        356,447,043          0.30       1.52        1.97        49.12        49.79  

American Funds IS Growth Fund Class 3

      368,188        740.45        757.81        278,777,631          0.35       1.30        1.40        50.08        50.23  

American Funds IS Growth-Income Fund Class 2

      5,925,728        43.03        46.74        274,750,351          1.23       1.52        1.97        11.33        11.83  

American Funds IS Growth-Income Fund Class 3

      434,298        346.36        354.48        153,747,600          1.28       1.30        1.40        12.03        12.14  

American Funds IS International Fund Class 3

      288,634        83.77        85.74        24,715,792          0.63       1.30        1.40        12.41        12.52  

American Funds IS U.S. Government Securities Fund Class 3

      226,242        44.51        45.55        10,298,390          2.00       1.30        1.40        8.39        8.49  

American Funds IS Ultra-Short Bond Fund Class 3

      219,773        19.13        19.58        4,302,394          0.22       1.30        1.40        -1.26        -1.16  

BlackRock 60/40 Target Allocation ETF V.I. Fund Class III

      40,807        13.37        14.50        582,129          1.35       1.10        1.70        12.42        13.10  

BlackRock Global Allocation V.I. Fund Class III

      107,285        13.21        14.25        1,494,067          0.91       1.10        1.70        18.67        19.39  

Columbia VP Dividend Opportunity Fund Class 1

      78,656        20.67        21.73        1,699,543          0.00       1.52        1.77        -0.63        -0.38  

Columbia VP Emerging Markets Bond Fund Class 2

      7,223        11.78        12.19        88,055          3.11       1.10        1.70        5.36        5.99  

Columbia VP Income Opportunities Fund Class 1

      281,445        26.63        29.67        8,171,514          4.35       1.52        2.17        3.62        4.30  

Columbia VP Large Cap Growth Fund Class 1

      1,163,971        21.67        22.18        25,693,081          0.00       1.52        2.02        32.04        32.70  

Columbia VP Limited Duration Credit Fund Class 2

      24,098        10.59        10.95        263,707          2.47       1.10        1.70        3.79        4.42  

Columbia VP Overseas Core Fund Class 2

      114,046        13.01        13.16        1,499,250          1.25       1.52        1.77        6.92        7.18  

Columbia VP Select Mid Cap Growth Opportunity Fund Class 1

      12,882        30.51        34.36        432,516            0.00       1.52        1.77        33.05        33.38  

 

 

86

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2020            For the Year Ended December 31, 2020  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

Columbia VP Small Company Growth Fund Class 1

      20,767        50.92        53.55        1,103,108          0.00       1.52        1.77        68.13        68.55  

CTIVP® Principal Blue Chip Growth Fund Class 1

      97,285        21.93        22.19        2,155,838          0.00       1.52        1.77        29.62        29.94  

Delaware Ivy VIP Asset Strategy Class II

      35,867        12.06        12.90        455,677          1.90       1.10        1.70        11.96        12.63  

FTVIP Franklin Allocation VIP Fund Class 2

      2,389,334        14.88        15.16        39,396,348          1.40       1.00        2.30        9.20        10.63  

FTVIP Franklin Income VIP Fund Class 1

      90,750        11.19        11.23        1,015,682          5.13       0.40        0.55        0.42        0.57  

FTVIP Franklin Income VIP Fund Class 2

      7,530,647        13.26        14.45        121,158,096          5.35       1.00        2.30        -1.60        -0.31  

FTVIP Franklin Strategic Income VIP Fund Class 2

      85,142        10.55        10.94        917,225          4.28       1.10        1.70        1.69        2.30  

Goldman Sachs VIT Government Money Market Fund Institutional Shares

      1,201,353        9.91        10.35        11,946,893          0.65       0.40        1.52        -1.09        0.03  

Goldman Sachs VIT Government Money Market Fund Service Shares

      26,453,917        9.43        9.95        259,222,008          0.20       1.00        2.15        -1.87        -0.73  

Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Advisor Shares

      63,076        9.55        9.91        621,809          1.38       1.10        1.40        5.10        5.41  

Goldman Sachs VIT Trend Driven Allocation Fund Service Shares

      6,317        11.06        11.81        74,316          0.25       1.10        1.35        2.72        2.97  

Invesco V.I. American Franchise Fund Series I

      517           17.57        9,081          0.06          0.80           22.50  

Invesco V.I. American Franchise Fund Series II

      1,365,782        31.28        37.06        55,417,796          0.00       1.00        2.30        38.77        40.58  

Invesco V.I. Balanced-Risk Allocation Fund Series II

      74,581        11.95        13.14        968,552          6.98       1.10        1.70        8.14        8.79  

Invesco V.I. Comstock Fund Series I

      6,751        10.78        10.83        73,083          2.94       0.40        0.55        -1.40        -1.25  

Invesco V.I. Comstock Fund Series II

      12,505,470        16.18        17.81        277,403,438          2.01       1.00        2.30        -3.34        -2.07  

Invesco V.I. Growth and Income Fund Series I

      87,576           11.02        964,744          1.94          0.55           1.53  

Invesco V.I. Growth and Income Fund Series II

      15,286,270        16.50        18.31        370,253,885          1.82       1.10        2.30        -0.47        0.74  

Lord Abbett Bond Debenture Portfolio Class VC

      112,970        12.22        13.21        1,479,572          3.52       1.10        1.70        5.50        6.13  

Lord Abbett Fundamental Equity Portfolio Class VC

      9,660        13.18        13.84        132,130          0.61       1.10        1.40        0.36        0.66  

Lord Abbett Growth and Income Portfolio Class VC

      7,895,869        11.72        16.28        165,768,678          1.55       0.55        2.30        0.36        2.13  

Lord Abbett Mid Cap Stock Portfolio Class VC

      505,487        23.01        24.11        12,150,405          0.93       1.52        1.77        0.70        0.95  

Lord Abbett Short Duration Income Portfolio Class VC

      253,267        10.44        10.85        2,732,661          3.05       1.10        1.70        1.39        2.00  

Morgan Stanley VIF Global Infrastructure Portfolio Class II

      67,373        11.18        12.25        814,429          1.51       1.10        1.70        -3.10        -2.51  

Neuberger Berman AMT US Equity Index PutWrite Strategy Portfolio Class S

      64,828        10.75        10.91        703,308          0.66       1.10        1.40        6.75        7.07  

PIMCO All Asset Portfolio Advisor Class

      4,794           12.01        57,582          4.39          1.10           6.73  

PIMCO Dynamic Bond Portfolio Advisor Class

      125,126        10.78        11.16        1,388,728          2.45       1.10        1.70        2.94        3.56  

PIMCO Emerging Markets Bond Portfolio Advisor Class

      105,657        10.83        12.19        1,189,174          4.59       1.00        1.70        4.80        5.54  

PIMCO Total Return Portfolio Advisor Class

      6,868,938        10.51        10.75        73,446,615          1.55       1.00        1.95        6.44        7.46  

PIMCO Total Return Portfolio Institutional Class

      26,993        10.73        10.87        290,528          2.34       0.40        0.55        8.21        8.38  

PVC Core Plus Bond Account Class 1

      455,292        11.03        11.13        5,057,627          3.54       1.40        1.95        7.44        8.03  

PVC Diversified International Account Class 1

      106,354        9.17        10.58        1,079,805          2.37       1.40        1.95        13.92        14.55  

PVC Equity Income Account Class 1

      435,552        23.33        25.22        10,882,228          1.71       1.40        1.80        4.53        4.95  

PVC Equity Income Account Class 2

      295,133        21.58        22.53        6,733,920          1.54       1.52        1.95        4.10        4.55  

PVC Government & High Quality Bond Account Class 1

      282,646        7.91        9.21        2,474,440          2.78       1.40        1.95        0.88        1.44  

PVC Large Cap Growth Account I Class 1

      95,013        15.21        15.35        1,455,002          0.02       1.40        1.95        33.57        34.31  

PVC MidCap Account Class 1

      52,921        37.23        40.21        2,085,728          0.65       1.40        1.80        16.22        16.69  

PVC MidCap Account Class 2

      18,000        34.39        37.13        659,919          0.36       1.55        1.95        15.79        16.25  

PVC Principal Capital Appreciation Account Class 1

      278,917        36.19        39.12        10,837,920          1.18       1.40        1.80        16.60        17.07  

PVC Principal Capital Appreciation Account Class 2

      62,874        33.40        36.05        2,252,487          1.03       1.55        1.95        16.15        16.62  

PVC Real Estate Securities Account Class 1

      10,078        37.49        40.36        405,433          1.78       1.40        1.80        -5.15        -4.76  

PVC Real Estate Securities Account Class 2

      6,441        36.85        38.24        244,619          1.66       1.55        1.70        -5.27        -5.13  

PVC SAM Balanced Portfolio Class 1

      1,302,596        19.34        20.90        26,485,143          1.98       1.40        1.80        9.29        9.73  

PVC SAM Balanced Portfolio Class 2

      1,270,029        17.96        19.51        24,415,780          1.84       1.52        1.95        8.81        9.28  

PVC SAM Conservative Balanced Portfolio Class 1

      189,867        12.69        13.70        2,546,620          2.19       1.40        1.80        7.65        8.08  

PVC SAM Conservative Balanced Portfolio Class 2

      219,560        11.79        17.83        2,793,092          2.10       1.52        1.95        7.14        7.60  

PVC SAM Conservative Growth Portfolio Class 1

      600,125        21.78        23.53        13,693,181          1.77       1.40        1.80        10.94        11.38  

PVC SAM Conservative Growth Portfolio Class 2

      605,780        20.17        21.85        13,035,949          1.49       1.52        1.95        10.51        10.98  

PVC SAM Flexible Income Portfolio Class 1

      328,642        13.62        14.73        4,694,975          2.61       1.40        1.80        5.36        5.78  

PVC SAM Flexible Income Portfolio Class 2

      362,217        12.67        16.91        4,934,327          2.46       1.52        1.95        4.96        5.41  

PVC SAM Strategic Growth Portfolio Class 1

      119,403        24.89        26.85        3,146,040          1.86       1.40        1.80        13.34        13.80  

PVC SAM Strategic Growth Portfolio Class 2

      238,354        23.05        25.06        5,830,863          1.46       1.52        1.95        12.91        13.40  

PVC Short-Term Income Account Class 1

      250,572        7.18        8.27        1,957,168          2.09       1.40        1.95        1.37        1.93  

PVC SmallCap Account Class 1

      31,376        17.61        19.01        576,385          0.42       1.40        1.80        20.02        20.50  

PVC SmallCap Account Class 2

      18,348        16.32        17.57        320,763          0.23       1.55        1.95        19.52        20.00  

SST SA Allocation Balanced Portfolio Class 1

      10,117        13.40        13.48        135,825          2.27       0.40        0.55        11.47        11.64  

SST SA Allocation Balanced Portfolio Class 3

      8,427,305        12.74        16.69        156,545,351          1.17       1.00        2.30        9.27        10.70  

SST SA Allocation Growth Portfolio Class 1

      14,558        15.10        15.19        219,999          0.00       0.40        0.55        15.85        16.03  

SST SA Allocation Growth Portfolio Class 3

      8,907,902        14.17        20.52        197,933,477          0.00       1.00        2.02        13.80        14.96  

SST SA Allocation Moderate Growth Portfolio Class 1

      17,190        14.50        14.58        250,466          0.00       0.40        0.55        14.48        14.65  

SST SA Allocation Moderate Growth Portfolio Class 3

      11,675,682        13.65        18.12        234,850,916          0.00       1.00        2.30        12.11        13.58  

SST SA Allocation Moderate Portfolio Class 1

      8,101           14.17        114,824          0.00          0.40           13.36  

SST SA Allocation Moderate Portfolio Class 3

      10,159,848        13.32        17.70        199,776,578          0.00       1.00        2.30        11.06        12.51  

SST SA American Century Inflation Protection Portfolio Class 1

      7,982        11.19        11.37        89,914          0.00       0.40        0.80        6.19        6.61  

SST SA American Century Inflation Protection Portfolio Class 3

      22,973,892        10.94        11.06        281,243,517          0.00       1.00        2.30        4.36        5.72  

SST SA Columbia Focused Value Portfolio Class 3

      8,920        14.61        16.09        141,815          0.00       1.10        1.70        5.54        6.17  

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3

      15,098        11.03        11.69        173,797          0.00       1.10        1.70        5.76        6.40  

SST SA Multi-Managed International Equity Portfolio Class 3

      35,865        12.73        12.78        456,535          0.00       1.10        1.40        9.75        10.08  

SST SA Multi-Managed Large Cap Growth Portfolio Class 3

      28,601        22.17        25.49        664,303          0.00       1.10        1.70        45.95        46.83  

SST SA Multi-Managed Large Cap Value Portfolio Class 3

      15,246        13.35        14.03        207,849          0.00       1.10        1.40        -0.15        0.15  

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3

      14,125        22.52        24.28        331,912          0.00       1.10        1.40        41.11        41.54  

SST SA Multi-Managed Mid Cap Value Portfolio Class 3

      24,148        13.06        14.01        331,011          0.00       1.10        1.40        3.98        4.29  

SST SA Multi-Managed Small Cap Portfolio Class 3

      16,366        13.19        15.34        248,212            0.00       1.10        1.70        10.00        10.66  

 

 

87

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2020            For the Year Ended December 31, 2020  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 1

      18,048        14.33        14.41        258,736          0.00       0.40        0.55        13.44        13.61  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 3

      5,494,623        14.15        14.74        79,970,194          0.00       1.00        1.95        11.57        12.64  

SST SA T. Rowe Price Growth Stock Portfolio Class 3

      22,399        23.67        25.11        550,862          0.00       1.10        1.40        34.27        34.67  

SAST SA AB Growth Portfolio Class 1

      8,043,668        17.95        37.24        484,973,886          0.00       0.40        1.77        33.24        35.08  

SAST SA AB Growth Portfolio Class 2

      418,214        127.31        142.41        57,309,849          0.00       1.40        1.97        32.80        33.56  

SAST SA AB Growth Portfolio Class 3

      5,983,240        35.51        39.94        434,336,876          0.00       1.00        2.30        32.21        33.94  

SAST SA AB Small & Mid Cap Value Portfolio Class 1

      24,670        10.53        10.57        260,448          0.95       0.40        0.55        3.69        3.85  

SAST SA AB Small & Mid Cap Value Portfolio Class 2

      249,091        36.92        40.12        9,905,755          0.51       1.52        1.97        2.05        2.52  

SAST SA AB Small & Mid Cap Value Portfolio Class 3

      11,530,631        16.22        21.45        339,970,634          0.51       1.00        2.30        1.61        2.94  

SAST SA American Funds Asset Allocation Portfolio Class 1

      499,737        14.37        14.46        7,205,548          0.00       0.40        0.55        11.78        11.95  

SAST SA American Funds Asset Allocation Portfolio Class 3

      58,948,212        17.58        19.72        1,315,299,702          0.00       1.00        2.30        9.59        11.02  

SAST SA American Funds Global Growth Portfolio Class 1

      22,995        15.43        15.49        355,503          0.33       0.40        0.55        29.77        29.96  

SAST SA American Funds Global Growth Portfolio Class 3

      12,379,344        24.20        28.70        390,560,649          0.05       1.00        2.30        27.13        28.79  

SAST SA American Funds Growth Portfolio Class 1

      37,847        18.48        18.67        703,646          1.24       0.40        0.80        50.88        51.48  

SAST SA American Funds Growth Portfolio Class 3

      12,378,564        33.38        36.78        505,024,430          0.74       1.00        2.30        48.27        50.21  

SAST SA American Funds Growth-Income Portfolio Class 1

      42,180        13.35        13.50        566,945          2.37       0.40        0.80        12.56        13.02  

SAST SA American Funds Growth-Income Portfolio Class 3

      11,193,282        22.50        23.82        294,885,882          1.56       1.00        2.30        10.67        12.12  

SAST SA American Funds VCP Managed Allocation Portfolio Class 1

      18,777        13.56        13.64        255,238          0.00       0.40        0.55        8.97        9.14  

SAST SA American Funds VCP Managed Allocation Portfolio Class 3

      110,809,630        12.81        15.29        1,831,250,710          0.00       1.00        2.30        6.83        8.23  

SAST SA BlackRock Multi-Factor 70/30 Portfolio Class 3

      252,549        10.64        10.65        2,687,779          0.38       1.15        1.55        6.37        6.47  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 1

      1,262        12.41        12.53        15,820          0.07       0.55        0.80        4.97        5.24  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 3

      56,577,810        11.83        12.20        718,600,536          0.04       1.00        2.15        3.26        4.45  

SAST SA DFA Ultra Short Bond Portfolio Class 1

      2,235,611        10.14        11.24        26,367,723          1.60       0.80        1.77        -1.55        -0.59  

SAST SA DFA Ultra Short Bond Portfolio Class 2

      810,084        10.57        11.48        9,250,346          1.51       1.52        1.97        -1.89        -1.44  

SAST SA DFA Ultra Short Bond Portfolio Class 3

      20,099,544        7.68        9.46        186,228,871          1.61       1.00        2.30        -2.16        -0.88  

SAST SA Emerging Markets Equity Index Portfolio Class 1

      4,612        11.79        11.84        54,440          2.90       0.40        0.55        16.49        16.66  

SAST SA Emerging Markets Equity Index Portfolio Class 3

      432,633        11.36        11.57        4,965,623          2.21       1.00        1.70        14.91        15.71  

SAST SA Federated Hermes Corporate Bond Portfolio Class 1

      1,528,690        12.68        34.58        54,423,746          3.82       0.40        1.77        7.11        8.59  

SAST SA Federated Hermes Corporate Bond Portfolio Class 2

      496,567        32.50        35.35        17,417,780          3.65       1.52        1.97        6.73        7.21  

SAST SA Federated Hermes Corporate Bond Portfolio Class 3

      28,553,812        13.29        18.14        669,007,576          3.66       1.00        2.30        6.28        7.67  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 1

      16,203        13.53        13.62        220,030          0.28       0.40        0.80        21.65        22.14  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 3

      218,419        13.32        13.44        2,923,039          0.22       1.00        1.55        20.47        21.13  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1

      404,338        12.34        39.81        16,881,043          1.72       0.40        1.77        -2.84        -1.50  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 2

      104,429        37.44        40.69        4,197,208          1.62       1.52        1.97        -3.14        -2.70  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 3

      7,232,081        12.88        14.16        149,769,614          1.58       1.00        2.30        -3.62        -2.36  

SAST SA Fixed Income Index Portfolio Class 3

      4,513,294        11.08        11.37        50,853,686          2.61       1.00        1.80        6.50        7.35  

SAST SA Fixed Income Intermediate Index Portfolio Class 3

      2,589,661        10.56        10.84        27,805,299          2.34       1.00        1.80        4.00        4.83  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1

      3,846,631        11.43        24.76        287,806,375          1.83       0.40        1.77        -3.00        -1.66  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 2

      565,642        67.29        75.15        41,053,801          1.70       1.40        1.97        -3.36        -2.81  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 3

      10,197,041        17.53        18.38        353,274,697          1.69       1.00        2.30        -3.78        -2.52  

SAST SA Franklin Small Company Value Portfolio Class 3

      7,145,579        16.79        19.21        145,226,411          0.94       1.00        2.30        2.58        3.93  

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 3

      148,983        11.69        11.74        1,746,447          2.30       1.15        1.55        8.04        8.47  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1

      654,164        13.75        37.66        25,471,589          2.01       0.40        1.77        5.62        7.08  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 2

      142,746        35.51        38.54        5,455,665          1.89       1.52        1.97        5.24        5.72  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 3

      4,220,974        21.58        29.11        140,064,294          2.05       1.00        2.30        4.78        6.15  

SAST SA Franklin Tactical Opportunities Portfolio Class 1

      2,934        12.29        12.35        36,114          1.32       0.40        0.55        7.86        8.02  

SAST SA Franklin Tactical Opportunities Portfolio Class 3

      4,343,112        11.75        12.02        51,712,492          1.21       1.00        1.70        6.42        7.17  

SAST SA Global Index Allocation 60/40 Portfolio Class 1

      10,023           12.33        123,562          1.51          0.40           11.33  

SAST SA Global Index Allocation 60/40 Portfolio Class 3

      4,216,976        11.83        12.05        50,439,709          1.65       1.00        1.70        9.58        10.35  

SAST SA Global Index Allocation 75/25 Portfolio Class 1

      8,770           12.37        108,504          1.82          0.55           11.91  

SAST SA Global Index Allocation 75/25 Portfolio Class 3

      3,722,086        11.84        12.14        44,860,171          1.40       1.00        1.95        10.05        11.10  

SAST SA Global Index Allocation 90/10 Portfolio Class 1

      232,434        12.27        12.41        2,879,426          0.00       0.40        0.80        11.57        12.01  

SAST SA Global Index Allocation 90/10 Portfolio Class 3

      14,172,789        11.90        12.12        170,618,894          0.00       1.00        1.70        10.27        11.04  

SAST SA Goldman Sachs Global Bond Portfolio Class 1

      803,649        12.16        15.82        20,210,493          0.61       0.40        1.77        9.88        11.39  

SAST SA Goldman Sachs Global Bond Portfolio Class 2

      201,256        22.65        24.58        4,905,058          0.44       1.52        1.97        9.42        9.91  

SAST SA Goldman Sachs Global Bond Portfolio Class 3

      14,480,643        11.17        12.41        223,898,433          0.37       1.00        2.30        9.02        10.44  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 1

      601           12.42        7,466          0.32          0.40           11.09  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 3

      1,812,483        11.72        12.09        21,698,611          0.16       1.00        1.95        9.09        10.13  

SAST SA Index Allocation 60/40 Portfolio Class 1

      28,243           14.18        400,576          2.54          0.55           13.06  

SAST SA Index Allocation 60/40 Portfolio Class 3

      10,780,791        13.43        13.80        147,252,762          1.39       1.00        1.70        11.57        12.36  

SAST SA Index Allocation 80/20 Portfolio Class 1

      159,038        14.75        14.98        2,372,599          0.00       0.40        0.80        13.75        14.21  

SAST SA Index Allocation 80/20 Portfolio Class 3

      18,624,911        13.97        14.50        267,057,432          0.00       1.00        1.95        12.22        13.29  

SAST SA Index Allocation 90/10 Portfolio Class 1

      298,279        15.05        15.29        4,527,135          0.00       0.40        0.80        13.80        14.25  

SAST SA Index Allocation 90/10 Portfolio Class 3

      52,322,336        14.26        14.79        765,969,462          0.00       1.00        1.95        12.26        13.33  

SAST SA International Index Portfolio Class 1

      93,663           10.98        1,028,607          2.02          0.55           6.99  

SAST SA International Index Portfolio Class 3

      882,464        10.92        11.17        9,744,596          2.52       1.00        1.70        5.55        6.29  

SAST SA Invesco Growth Opportunities Portfolio Class 1

      509,607        18.17        20.24        10,816,323          0.00       0.40        1.77        53.09        55.20  

SAST SA Invesco Growth Opportunities Portfolio Class 2

      201,567        19.01        20.70        4,135,294          0.00       1.52        1.97        52.63        53.32  

SAST SA Invesco Growth Opportunities Portfolio Class 3

      4,563,326        27.99        35.61        128,988,059          0.00       1.00        2.30        51.88        53.87  

SAST SA Janus Focused Growth Portfolio Class 1

      398,640        18.11        39.25        16,341,404          0.07       0.40        1.77        36.56        38.44  

SAST SA Janus Focused Growth Portfolio Class 2

      278,324        38.25        40.08        11,052,230          0.00       1.52        1.77        36.35        36.69  

SAST SA Janus Focused Growth Portfolio Class 3

      3,357,743        28.20        32.88        124,859,828          0.00       1.00        2.30        35.45        37.22  

SAST SA JPMorgan Diversified Balanced Portfolio Class 1

      1,462,725        13.88        18.30        48,818,655            2.02       0.40        1.77        12.33        13.88  

 

 

88

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2020            For the Year Ended December 31, 2020  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

SAST SA JPMorgan Diversified Balanced Portfolio Class 2

      355,743        30.50        33.14        11,702,420          1.99       1.52        1.97        11.98        12.48  

SAST SA JPMorgan Diversified Balanced Portfolio Class 3

      6,985,288        16.88        19.18        160,520,047          1.89       1.00        2.30        11.44        12.90  

SAST SA JPMorgan Emerging Markets Portfolio Class 1

      781,896        11.39        23.27        18,907,131          1.63       0.40        1.77        14.36        15.94  

SAST SA JPMorgan Emerging Markets Portfolio Class 2

      141,152        21.87        23.78        3,327,141          1.59       1.52        1.97        14.04        14.55  

SAST SA JPMorgan Emerging Markets Portfolio Class 3

      6,235,251        12.61        13.14        109,265,509          1.55       1.00        2.30        13.47        14.95  

SAST SA JPMorgan Equity-Income Portfolio Class 1

      1,653,085        12.69        21.75        115,656,661          1.86       0.40        1.77        1.41        2.80  

SAST SA JPMorgan Equity-Income Portfolio Class 2

      137,898        64.23        69.95        9,529,882          1.70       1.52        1.97        1.04        1.50  

SAST SA JPMorgan Equity-Income Portfolio Class 3

      5,449,884        19.59        21.08        147,195,917          1.79       1.00        2.30        0.60        1.92  

SAST SA JPMorgan Global Equities Portfolio Class 1

      947,103        11.52        36.24        35,885,305          1.34       0.40        1.77        7.84        9.33  

SAST SA JPMorgan Global Equities Portfolio Class 2

      86,303        34.17        37.98        3,189,923          1.14       1.40        1.97        7.52        8.13  

SAST SA JPMorgan Global Equities Portfolio Class 3

      1,538,089        15.29        16.18        31,928,957          1.20       1.00        2.30        7.07        8.47  

SAST SA JPMorgan Large Cap Core Portfolio Class 1

      510,443        47.86        50.33        25,650,907          0.99       1.52        1.77        11.39        11.67  

SAST SA JPMorgan Large Cap Core Portfolio Class 2

      77,147        44.93        48.91        3,746,158          0.86       1.52        1.97        11.00        11.50  

SAST SA JPMorgan Large Cap Core Portfolio Class 3

      2,031,409        21.46        23.06        62,535,157          0.79       1.00        2.30        10.57        12.02  

SAST SA JPMorgan MFS Core Bond Portfolio Class 1

      1,324,035        12.05        31.69        43,561,320          2.62       0.40        1.77        6.47        7.94  

SAST SA JPMorgan MFS Core Bond Portfolio Class 2

      255,345        30.77        32.30        8,179,522          2.57       1.52        1.77        6.35        6.62  

SAST SA JPMorgan MFS Core Bond Portfolio Class 3

      37,871,230        11.59        14.18        679,970,837          2.31       1.00        2.30        5.75        7.13  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1

      1,094,902        19.06        26.96        51,180,962          0.16       0.40        1.77        45.94        47.95  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 2

      422,969        42.44        47.35        19,320,337          0.04       1.40        1.97        45.42        46.25  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 3

      3,420,184        31.93        41.89        156,629,503          0.00       1.00        2.30        44.82        46.71  

SAST SA Large Cap Growth Index Portfolio Class 1

      42,752           16.52        706,297          1.29          0.55           31.80  

SAST SA Large Cap Growth Index Portfolio Class 3

      827,622        15.92        16.22        13,324,788          1.17       1.00        1.70        29.97        30.88  

SAST SA Large Cap Index Portfolio Class 1

      90,768           15.10        1,370,570          1.40          0.80           25.98  

SAST SA Large Cap Index Portfolio Class 3

      2,018,436        14.55        14.88        29,679,013          1.48       1.00        1.70        15.75        16.56  

SAST SA Large Cap Value Index Portfolio Class 1

      39,742           12.34        490,352          1.93          0.55           0.80  

SAST SA Large Cap Value Index Portfolio Class 3

      858,020        11.89        12.11        10,311,984          2.31       1.00        1.70        -0.59        0.11  

SAST SA MFS Blue Chip Growth Portfolio Class 1

      486,334        16.02        19.09        9,800,833          0.58       0.55        1.77        28.39        29.97  

SAST SA MFS Blue Chip Growth Portfolio Class 2

      189,687        18.62        19.55        3,672,812          0.43       1.52        1.77        28.18        28.50  

SAST SA MFS Blue Chip Growth Portfolio Class 3

      3,956,011        27.60        29.31        107,426,719          0.35       1.00        2.30        27.35        29.01  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 1

      738,301        28.55        65.42        48,040,815          0.63       1.52        1.77        12.33        12.61  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 2

      125,446        58.71        63.63        7,917,379          0.46       1.52        1.97        11.91        12.41  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 3

      6,329,480        22.09        26.17        227,162,662          0.39       1.00        2.30        11.44        12.90  

SAST SA MFS Total Return Portfolio Class 1

      1,987,685        13.52        23.69        103,562,085          1.87       0.40        1.77        7.68        9.16  

SAST SA MFS Total Return Portfolio Class 2

      443,751        47.70        51.86        22,739,885          1.72       1.52        1.97        7.28        7.76  

SAST SA MFS Total Return Portfolio Class 3

      7,074,620        16.04        17.69        196,539,083          1.70       1.00        2.30        6.83        8.23  

SAST SA Mid Cap Index Portfolio Class 1

      4,755           12.52        59,516          0.73          0.55           12.58  

SAST SA Mid Cap Index Portfolio Class 3

      1,406,376        12.26        12.64        17,620,112          1.15       1.00        1.95        10.71        11.77  

SAST SA Morgan Stanley International Equities Portfolio Class 1

      1,416,342        17.25        18.13        25,662,058          1.67       1.52        1.77        9.54        9.82  

SAST SA Morgan Stanley International Equities Portfolio Class 2

      515,644        16.24        17.63        9,014,017          1.54       1.52        1.97        9.20        9.69  

SAST SA Morgan Stanley International Equities Portfolio Class 3

      6,970,282        11.89        12.78        108,013,336          1.50       1.00        2.30        8.78        10.20  

SAST SA PIMCO RAE International Value Portfolio Class 1

      5,360        9.02        9.05        48,517          2.02       0.40        0.55        44.04        44.21  

SAST SA PIMCO RAE International Value Portfolio Class 2

      513,021        17.03        18.75        9,562,305          2.16       1.52        1.97        -5.19        -4.76  

SAST SA PIMCO RAE International Value Portfolio Class 3

      24,386,336        9.43        10.33        321,524,141          2.21       1.00        2.30        -5.59        -4.36  

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 3

      77,128,993        12.69        14.07        1,152,027,244          0.44       1.00        2.15        6.35        7.58  

SAST SA PineBridge High-Yield Bond Portfolio Class 1

      948,715        35.73        37.51        35,528,112          5.63       1.52        1.77        6.17        6.44  

SAST SA PineBridge High-Yield Bond Portfolio Class 2

      199,881        33.47        36.44        7,207,823          5.41       1.52        1.97        5.78        6.26  

SAST SA PineBridge High-Yield Bond Portfolio Class 3

      4,114,892        13.82        16.07        91,875,184          5.24       1.00        2.30        5.38        6.76  

SAST SA Putnam International Growth and Income Portfolio Class 1

      1,184,728        10.15        12.23        21,003,045          2.05       0.40        1.77        1.93        3.33  

SAST SA Putnam International Growth and Income Portfolio Class 2

      255,641        16.08        17.42        4,408,176          1.92       1.52        1.97        1.53        1.99  

SAST SA Putnam International Growth and Income Portfolio Class 3

      5,754,373        11.64        15.40        86,782,737          1.95       1.10        2.17        1.24        2.33  

SAST SA Schroders VCP Global Allocation Portfolio Class 1

      16,499        12.00        12.07        198,522          0.15       0.40        0.55        0.03        0.18  

SAST SA Schroders VCP Global Allocation Portfolio Class 3

      42,063,994        11.37        12.12        530,611,542          0.11       1.00        2.15        -1.76        -0.63  

SAST SA Small Cap Index Portfolio Class 1

      4,813        12.88        12.93        62,162          0.78       0.40        0.55        18.72        18.90  

SAST SA Small Cap Index Portfolio Class 3

      1,262,051        12.49        12.88        16,100,480          0.76       1.00        1.95        16.78        17.89  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 1

      26,164        14.00        14.07        367,185          0.94       0.40        0.55        16.64        16.82  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 3

      21,160,920        13.28        13.70        287,192,895          0.63       1.00        1.95        14.79        15.88  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 1

      6,824           14.15        96,545          0.12          0.55           8.55  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 3

      91,192,522        13.24        14.17        1,345,249,965          0.09       1.00        2.15        6.55        7.78  

SAST SA VCP Dynamic Allocation Portfolio Class 1

      17,949        14.55        14.69        263,683          1.27       0.55        0.80        12.47        12.76  

SAST SA VCP Dynamic Allocation Portfolio Class 3

      499,263,211        13.75        16.23        8,647,437,517          1.10       1.00        2.15        10.69        11.97  

SAST SA VCP Dynamic Strategy Portfolio Class 1

      14,360           13.98        200,804          1.30          0.55           9.87  

SAST SA VCP Dynamic Strategy Portfolio Class 3

      329,793,617        13.16        15.41        5,410,012,413          1.12       1.00        2.15        7.85        9.10  

SAST SA VCP Index Allocation Portfolio Class 1

      4,968           12.66        62,882          1.26          0.55           9.79  

SAST SA VCP Index Allocation Portfolio Class 3

      29,899,655        12.00        12.37        366,609,483          1.12       1.00        1.95        5.62        6.63  

SAST SA Wellington Capital Appreciation Portfolio Class 1

      1,871,273        20.04        65.89        510,908,666          0.00       0.40        1.77        61.65        63.88  

SAST SA Wellington Capital Appreciation Portfolio Class 2

      259,140        231.56        254.28        63,951,978          0.00       1.40        1.97        61.08        62.00  

SAST SA Wellington Capital Appreciation Portfolio Class 3

      7,342,843        38.71        55.66        653,285,491          0.00       1.00        2.30        60.39        62.49  

SAST SA Wellington Government and Quality Bond Portfolio Class 1

      2,550,102        11.66        15.38        66,157,852          2.04       0.40        1.77        5.23        6.68  

SAST SA Wellington Government and Quality Bond Portfolio Class 2

      996,407        21.18        23.05        22,783,188          1.90       1.52        1.97        4.84        5.31  

SAST SA Wellington Government and Quality Bond Portfolio Class 3

      30,405,044        11.32        12.04        491,521,902          1.77       1.00        2.30        4.45        5.81  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 1

      186,983        14.42        84.25        15,598,325          1.03       0.40        1.40        16.48        17.65  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 3

      5,287,566        13.86        14.28        74,574,145          0.87       1.00        1.70        15.81        16.63  

VALIC Company I International Equities Index Fund

      400,708        12.48        12.50        5,002,670            2.46       1.10        1.40        5.89        6.20  

 

 

89

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2020            For the Year Ended December 31, 2020  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		    

 Expense

Ratio (%)(d)(f)

  

 

     

 Total

Return (%)(e)(f)

  

 

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

VALIC Company I International Socially Responsible Fund

      85,339        14.93        15.64        1,317,149          1.58       1.10        1.40        6.86        7.18  

VALIC Company I Mid Cap Index Fund

      284,130        15.77        17.06        4,725,038          1.30       1.10        1.40        11.72        12.06  

VALIC Company I Nasdaq-100 Index Fund

      156,659        26.62        30.75        4,669,986          0.71       1.10        1.70        45.45        46.33  

VALIC Company I Small Cap Index Fund

      195,115        15.11        18.01        3,367,947          1.47       1.10        1.70        17.47        18.18  

VALIC Company I Stock Index Fund

      683,590        17.73        19.75        13,363,680            1.82       1.10        1.70        16.00        16.70  

 

 

 

                                                                                    
     December 31, 2019            For the Year Ended December 31, 2019  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		     Ratio (%)(d)(f)        Return (%)(e)(f)  

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

American Funds IS American High-Income Trust Class 3

      86,755        112.18        114.68        9,943,126          6.29       1.30        1.40        11.13        11.24  

American Funds IS Asset Allocation Fund Class 2

      1,809,711        30.33        31.66        57,171,522          1.89       1.52        1.77        19.11        19.40  

American Funds IS Asset Allocation Fund Class 3

      335,951        94.92        97.05        32,568,686          1.95       1.30        1.40        19.62        19.74  

American Funds IS Capital Income Builder Class 4

      255,292        11.04        11.76        2,991,457          2.65       1.10        1.70        15.64        16.33  

American Funds IS Global Growth Fund Class 2

      3,570,927        47.70        51.57        182,820,869          1.15       1.52        1.97        32.64        33.24  

American Funds IS Growth Fund Class 2

      5,200,117        49.82        53.84        277,857,246          0.76       1.52        1.97        28.22        28.80  

American Funds IS Growth Fund Class 3

      423,601        493.36        504.42        213,513,707          0.80       1.30        1.40        29.05        29.18  

American Funds IS Growth-Income Fund Class 2

      6,751,478        38.65        41.80        280,061,420          1.74       1.52        1.97        23.68        24.23  

American Funds IS Growth-Income Fund Class 3

      495,490        309.16        316.09        156,436,658          1.71       1.30        1.40        24.48        24.61  

American Funds IS International Fund Class 3

      324,691        74.52        76.20        24,711,467          1.46       1.30        1.40        21.34        21.46  

American Funds IS U.S. Government Securities Fund Class 3

      210,176        41.06        41.99        8,817,779          2.03       1.30        1.40        4.02        4.13  

American Funds IS Ultra-Short Bond Fund Class 3

      160,843        19.38        19.81        3,185,378          1.53       1.30        1.40        0.34        0.44  

BlackRock 60/40 Target Allocation ETF V.I. Fund Class III

      41,833        11.89        12.82        526,932          1.94       1.10        1.70        19.18        19.90  

BlackRock Global Allocation V.I. Fund Class III

      194,319        11.13        11.94        2,259,020          1.22       1.10        1.70        15.77        16.47  

Columbia VP Dividend Opportunity Fund Class 1

      79,850        20.80        21.81        1,733,097          0.00       1.52        1.77        21.89        22.20  

Columbia VP Emerging Markets Bond Fund Class 2

      7,194        11.18        11.50        82,748          4.90       1.10        1.70        10.20        10.86  

Columbia VP Income Opportunities Fund Class 1

      324,107        25.70        28.45        9,044,133          5.16       1.52        2.17        13.97        14.71  

Columbia VP Large Cap Growth Fund Class 1

      1,371,329        16.32        16.71        22,834,005          0.00       1.52        2.17        32.98        33.85  

Columbia VP Limited Duration Credit Fund Class 2

      24,093        10.38        10.48        252,571          2.14       1.10        1.35        6.03        6.29  

Columbia VP Overseas Core Fund Class 2

      105,260        12.17        12.28        1,291,650          1.86       1.52        1.77        22.95        23.26  

Columbia VP Select Mid Cap Growth Opportunity Fund Class 1

      16,242        22.93        25.76        410,783          0.00       1.52        1.77        32.81        33.14  

Columbia VP Small Company Growth Fund Class 1

      25,887        30.29        31.77        816,586          0.00       1.52        1.77        38.23        38.57  

CTIVP® Principal Blue Chip Growth Fund Class 1

      109,440        16.92        17.07        1,866,835          0.00       1.52        1.77        29.44        29.77  

Delaware Ivy VIP Asset Strategy Class II

      36,513        10.77        11.45        411,737          2.08       1.10        1.70        19.73        20.45  

FTVIP Franklin Allocation VIP Fund Class 2

      2,572,405        13.62        13.71        38,493,610          3.56       1.00        2.30        17.13        18.67  

FTVIP Franklin Income VIP Fund Class 1

      80,733           11.14        899,638          0.00          0.55           15.78  

FTVIP Franklin Income VIP Fund Class 2

      7,738,838        13.30        14.68        125,198,641          5.43       1.00        2.30        13.42        14.90  

FTVIP Franklin Strategic Income VIP Fund Class 2

      83,482        10.38        10.69        880,330          5.11       1.10        1.70        6.23        6.87  

Goldman Sachs VIT Government Money Market Fund Institutional Shares

      136,994           10.30        1,410,896          0.67          0.55           1.57  

Goldman Sachs VIT Government Money Market Fund Service Shares

      8,749,130        9.68        9.98        86,588,911          1.80       1.10        1.95        -0.09        0.76  

Goldman Sachs VIT Multi-Strategy Alternatives Portfolio Advisor Shares

      90,328        9.08        9.40        845,973          2.54       1.10        1.40        7.09        7.42  

Goldman Sachs VIT Trend Driven Allocation Fund Service Shares

      5,480        10.76        11.47        62,596          1.40       1.10        1.35        10.44        10.71  

Invesco V.I. American Franchise Fund Series II

      1,011,279        22.25        26.71        28,605,004          0.00       1.00        2.30        33.33        35.07  

Invesco V.I. Balanced-Risk Allocation Fund Series II

      87,982        11.57        12.08        1,051,526          0.00       1.10        1.40        13.29        13.63  

Invesco V.I. Comstock Fund Series I

      1,300        10.94        10.96        14,253          1.76       0.40        0.55        24.61        24.80  

Invesco V.I. Comstock Fund Series II

      12,306,463        16.52        18.43        281,503,714          1.67       1.00        2.30        22.10        23.70  

Invesco V.I. Growth and Income Fund Series I

      83,027           10.85        900,815          0.00          0.55           24.50  

Invesco V.I. Growth and Income Fund Series II

      15,748,687        16.38        18.39        381,758,846          1.54       1.10        2.30        22.01        23.48  

Lord Abbett Bond Debenture Portfolio Class VC

      122,864        11.58        12.45        1,518,906          4.30       1.10        1.70        11.44        12.11  

Lord Abbett Fundamental Equity Portfolio Class VC

      23,977        13.13        13.75        328,226          1.31       1.10        1.40        19.83        20.19  

Lord Abbett Growth and Income Portfolio Class VC

      8,136,695        11.47        16.22        169,605,470          1.65       0.55        2.30        19.71        21.82  

Lord Abbett Mid Cap Stock Portfolio Class VC

      553,830        22.85        23.88        13,188,768          0.91       1.52        1.77        20.49        20.79  

Lord Abbett Short Duration Income Portfolio Class VC

      187,303        10.30        10.64        1,982,979          3.43       1.10        1.70        3.28        3.91  

Morgan Stanley VIF Global Infrastructure Portfolio Class II

      100,799        11.53        12.56        1,248,455          2.61       1.10        1.70        25.71        26.47  

Neuberger Berman AMT US Equity Index PutWrite Strategy Portfolio Class S

      91,808        10.07        10.18        929,308          0.16       1.10        1.40        13.66        14.00  

PIMCO All Asset Portfolio Advisor Class

      4,606        11.19        11.25        51,833          2.75       1.10        1.35        10.25        10.52  

PIMCO Dynamic Bond Portfolio Advisor Class

      91,734        10.48        10.77        982,607          4.32       1.10        1.70        3.06        3.68  

PIMCO Emerging Markets Bond Portfolio Advisor Class

      45,361        11.63        11.99        508,840          3.13       1.10        1.70        12.72        13.39  

PIMCO Total Return Portfolio Advisor Class

      515,832        9.88        10.01        5,146,833          0.26       1.00        1.80        -1.23        -1.04  

PIMCO Total Return Portfolio Institutional Class

      1,603           9.91        15,890          0.02          0.55           -0.88  

PVC Core Plus Bond Account Class 1

      464,938        10.27        10.30        4,787,195          3.16       1.40        1.95        2.70        3.03  

PVC Diversified International Account Class 1

      112,678        8.05        9.23        1,005,217          1.86       1.40        1.95        20.16        20.98  

PVC Equity Income Account Class 1

      504,077        22.32        24.03        11,997,413          1.94       1.40        1.80        26.78        27.29  

PVC Equity Income Account Class 2

      336,472        20.73        21.55        7,355,773          1.68       1.52        1.95        26.29        26.84  

PVC Government & High Quality Bond Account Class 1

      259,792        7.84        9.08        2,254,221          3.37       1.40        1.95        4.30        4.97  

PVC Large Cap Growth Account I Class 1

      98,902        11.39        11.43        1,129,251          0.05       1.40        1.95        13.90        14.26  

PVC MidCap Account Class 1

      56,680        32.03        34.46        1,918,421          0.30       1.40        1.80        40.55        41.11  

PVC MidCap Account Class 2

      30,850        29.70        31.94        977,998          0.05       1.55        1.95        39.97        40.53  

PVC Principal Capital Appreciation Account Class 1

      313,945        31.04        33.41        10,425,512          1.65       1.40        1.80        30.12        30.64  

PVC Principal Capital Appreciation Account Class 2

      72,996        28.75        30.92        2,237,508          1.45       1.55        1.95        29.55        30.07  

PVC Real Estate Securities Account Class 1

      10,391        39.53        42.38        439,148            1.90       1.40        1.80        28.92        29.44  

 

 

90

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2019            For the Year Ended December 31, 2019  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		     Ratio (%)(d)(f)        Return (%)(e)(f)  

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

PVC Real Estate Securities Account Class 2

      6,344        38.91        40.31        254,168          1.72       1.55        1.70        28.73        28.92  

PVC SAM Balanced Portfolio Class 1

      1,561,087        17.69        19.05        28,914,650          2.54       1.40        1.80        17.87        18.34  

PVC SAM Balanced Portfolio Class 2

      1,422,112        16.51        17.85        25,048,816          2.36       1.52        1.95        17.43        17.93  

PVC SAM Conservative Balanced Portfolio Class 1

      222,379        11.79        12.68        2,744,189          2.91       1.40        1.80        13.82        14.27  

PVC SAM Conservative Balanced Portfolio Class 2

      273,260        11.00        16.57        3,229,240          2.70       1.52        1.95        13.43        13.92  

PVC SAM Conservative Growth Portfolio Class 1

      639,897        19.63        21.12        13,152,696          1.77       1.40        1.80        21.85        22.33  

PVC SAM Conservative Growth Portfolio Class 2

      709,567        18.25        19.69        13,765,197          1.65       1.52        1.95        21.30        21.82  

PVC SAM Flexible Income Portfolio Class 1

      373,924        12.92        13.93        5,070,782          3.52       1.40        1.80        11.23        11.67  

PVC SAM Flexible Income Portfolio Class 2

      410,351        12.08        16.04        5,308,046          3.46       1.52        1.95        10.79        11.27  

PVC SAM Strategic Growth Portfolio Class 1

      132,458        21.96        23.60        3,065,908          1.63       1.40        1.80        25.17        25.67  

PVC SAM Strategic Growth Portfolio Class 2

      244,621        20.42        22.10        5,288,289          1.27       1.52        1.95        24.68        25.22  

PVC Short-Term Income Account Class 1

      244,375        7.08        8.11        1,881,407          2.95       1.40        1.95        2.69        3.24  

PVC SmallCap Account Class 1

      33,447        14.67        15.77        512,880          0.34       1.40        1.80        25.13        25.63  

PVC SmallCap Account Class 2

      23,256        13.66        14.64        338,868          0.10       1.55        1.95        24.67        25.17  

SST SA Allocation Balanced Portfolio Class 1

      2,048           12.08        24,734          1.76          0.40           15.85  

SST SA Allocation Balanced Portfolio Class 3

      8,162,392        11.51        15.27        137,159,809          1.64       1.00        2.30        13.39        14.87  

SST SA Allocation Growth Portfolio Class 1

      12,483           13.03        162,673          0.06          0.55           23.01  

SST SA Allocation Growth Portfolio Class 3

      7,687,856        12.32        17.77        149,067,081          0.01       1.00        2.15        20.88        22.28  

SST SA Allocation Moderate Growth Portfolio Class 1

      37,052        12.66        12.72        470,020          2.99       0.40        0.55        20.26        20.44  

SST SA Allocation Moderate Growth Portfolio Class 3

      11,933,954        12.02        16.16        211,845,107          1.43       0.00        0.00        0.00        0.00  

SST SA Allocation Moderate Portfolio Class 1

      8,207           12.50        102,616          1.65       0.00        0.00        0.00        0.00  

SST SA Allocation Moderate Portfolio Class 3

      10,496,530        11.84        15.94        183,837,816          1.48       0.00        0.00        0.00        0.00  

SST SA American Century Inflation Protection Portfolio Class 1

      7,266        10.54        10.66        76,944          0.33       0.00        0.00        0.00        0.00  

SST SA American Century Inflation Protection Portfolio Class 3

      23,408,737        10.35        10.60        271,949,055          0.32       0.00        0.00        0.00        0.00  

SST SA Columbia Focused Value Portfolio Class 3

      10,899        13.84        15.15        162,202          0.47       0.00        0.00        0.00        0.00  

SST SA Multi-Managed Diversified Fixed Income Portfolio Class 3

      14,207        10.60        10.99        153,932          2.52       0.00        0.00        0.00        0.00  

SST SA Multi-Managed International Equity Portfolio Class 3

      41,997        11.60        11.61        486,111          3.09       0.00        0.00        0.00        0.00  

SST SA Multi-Managed Large Cap Growth Portfolio Class 3

      10,189        16.30        17.36        171,501          0.22       0.00        0.00        0.00        0.00  

SST SA Multi-Managed Large Cap Value Portfolio Class 3

      13,710        13.37        14.01        186,918          2.04       1.10        1.40        26.63        27.01  

SST SA Multi-Managed Mid Cap Growth Portfolio Class 3

      27,502        15.96        17.16        462,023          0.00       1.10        1.40        33.87        34.27  

SST SA Multi-Managed Mid Cap Value Portfolio Class 3

      26,584        12.56        13.43        350,260          1.10       1.10        1.40        23.33        23.70  

SST SA Multi-Managed Small Cap Portfolio Class 3

      18,037        11.99        13.86        247,120          0.00       1.10        1.70        22.15        22.88  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 1

      19,996        12.63        12.69        252,656          1.41       0.40        0.55        19.45        19.63  

SST SA Putnam Asset Allocation Diversified Growth Portfolio Class 3

      5,164,089        12.68        13.08        66,911,477          1.29       1.00        1.95        17.49        18.62  

SST SA T. Rowe Price Growth Stock Portfolio Class 3

      24,882        16.02        18.64        455,424          0.00       1.10        1.70        27.85        28.62  

SAST SA AB Growth Portfolio Class 1

      9,156,462        13.25        27.95        418,161,337          0.00       0.55        1.77        32.51        34.13  

SAST SA AB Growth Portfolio Class 2

      475,058        95.87        106.63        48,812,760          0.00       1.40        1.97        32.05        32.80  

SAST SA AB Growth Portfolio Class 3

      5,989,180        26.51        30.21        353,127,185          0.00       1.00        2.30        31.49        33.21  

SAST SA AB Small & Mid Cap Value Portfolio Class 1

      4,069        10.16        10.18        41,424          0.00       0.40        0.55        19.30        19.48  

SAST SA AB Small & Mid Cap Value Portfolio Class 2

      270,468        36.18        39.14        10,502,610          0.00       1.52        1.97        17.45        17.98  

SAST SA AB Small & Mid Cap Value Portfolio Class 3

      11,897,460        15.75        21.11        343,498,739          0.00       1.00        2.30        17.00        18.53  

SAST SA American Funds Asset Allocation Portfolio Class 1

      335,415        12.86        12.91        4,319,030          2.91       0.40        0.55        20.55        20.73  

SAST SA American Funds Asset Allocation Portfolio Class 3

      52,222,684        15.83        18.00        1,050,321,294          1.80       1.00        2.30        18.16        19.70  

SAST SA American Funds Global Growth Portfolio Class 1

      7,673        11.89        11.92        91,415          0.74       0.40        0.55        34.53        34.73  

SAST SA American Funds Global Growth Portfolio Class 3

      14,755,988        18.79        22.57        362,404,927          0.80       1.00        2.30        31.86        33.59  

SAST SA American Funds Growth Portfolio Class 1

      13,028        12.24        12.33        160,128          0.00       0.40        0.80        29.71        30.23  

SAST SA American Funds Growth Portfolio Class 3

      12,907,285        22.22        24.81        350,406,252          0.00       1.00        2.30        27.43        29.09  

SAST SA American Funds Growth-Income Portfolio Class 1

      13,323        11.91        11.94        158,760          0.00       0.40        0.55        25.48        25.67  

SAST SA American Funds Growth-Income Portfolio Class 3

      10,983,835        20.07        21.53        258,117,453          0.00       1.00        2.30        22.89        24.50  

SAST SA American Funds VCP Managed Allocation Portfolio Class 1

      10,419        12.44        12.50        130,006          0.75       0.40        0.55        18.16        18.34  

SAST SA American Funds VCP Managed Allocation Portfolio Class 3

      112,600,523        11.84        14.47        1,724,612,450          0.27       1.00        2.15        15.97        17.31  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 1

      1,231        11.82        11.91        14,658          1.12       0.55        0.80        15.07        15.36  

SAST SA BlackRock VCP Global Multi Asset Portfolio Class 3

      58,117,412        11.33        11.82        708,855,120          0.82       1.00        2.15        13.23        14.54  

SAST SA DFA Ultra Short Bond Portfolio Class 1

      2,263,791        10.20        11.42        27,055,774          1.66       0.80        1.77        0.48        1.46  

SAST SA DFA Ultra Short Bond Portfolio Class 2

      866,109        10.78        11.65        10,017,094          1.50       1.52        1.97        0.16        0.61  

SAST SA DFA Ultra Short Bond Portfolio Class 3

      15,775,900        7.84        9.55        150,074,756          1.83       1.00        2.30        -0.33        0.98  

SAST SA Emerging Markets Equity Index Portfolio Class 1

      1,447        10.12        10.15        14,683          0.00       0.40        0.55        18.04        18.22  

SAST SA Emerging Markets Equity Index Portfolio Class 3

      219,368        9.89        9.99        2,181,903          0.00       1.10        1.70        16.39        17.09  

SAST SA Federated Hermes Corporate Bond Portfolio Class 1

      1,670,568        11.67        32.29        55,496,983          4.77       0.40        1.77        12.86        14.42  

SAST SA Federated Hermes Corporate Bond Portfolio Class 2

      549,723        30.45        32.97        17,981,049          4.12       1.52        1.97        12.45        12.96  

SAST SA Federated Hermes Corporate Bond Portfolio Class 3

      26,537,731        12.34        17.06        590,433,063          5.03       1.00        2.30        11.99        13.45  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 1

      4,961        11.12        11.14        55,236          0.39       0.55        0.80        11.22        11.40  

SAST SA Fidelity Institutional AM® International Growth Portfolio Class 3

      84,747        11.06        11.10        938,721          0.30       1.00        1.55        10.57        10.98  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1

      469,192        12.50        40.97        20,147,628          2.39       0.55        1.77        24.00        25.52  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 2

      112,600        38.66        41.82        4,652,649          2.24       1.52        1.97        23.54        24.10  

SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 3

      6,981,944        13.37        14.50        151,160,749          1.99       1.00        2.30        23.10        24.71  

SAST SA Fixed Income Index Portfolio Class 3

      1,998,053        10.41        10.59        21,021,148          0.22       1.00        1.80        6.86        7.72  

SAST SA Fixed Income Intermediate Index Portfolio Class 3

      1,711,873        10.16        10.34        17,592,037          0.17       1.00        1.80        4.09        4.92  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1

      4,305,832        25.53        79.12        331,917,040          2.02       1.40        1.77        23.48        23.94  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 2

      600,657        69.63        77.33        44,937,837          1.76       1.40        1.97        23.09        23.80  

SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 3

      9,987,562        17.86        19.10        362,183,792          1.84       1.10        2.30        22.54        24.01  

SAST SA Franklin Small Company Value Portfolio Class 3

      7,386,700        16.15        18.73        144,933,900          0.71       1.00        2.30        23.31        24.92  

SAST SA Franklin Systematic U.S. Large Cap Core Portfolio Class 3

      10,549        10.82        10.83        114,199            0.32       1.15        1.30        8.22        8.26  

 

 

91

Table of Contents

VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2019            For the Year Ended December 31, 2019  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		     Ratio (%)(d)(f)        Return (%)(e)(f)  

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1

      754,109        12.85        35.66        27,939,538          2.50       0.40        1.77        22.60        24.29  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 2

      165,317        33.74        36.46        5,976,602          2.26       1.52        1.97        22.20        22.75  

SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 3

      3,799,420        20.33        27.78        118,452,677          2.45       1.00        2.30        21.67        23.27  

SAST SA Franklin Tactical Opportunities Portfolio Class 1

      2,915        11.40        11.44        33,249          1.66       0.40        0.55        17.98        18.15  

SAST SA Franklin Tactical Opportunities Portfolio Class 3

      3,590,758        11.04        11.22        40,007,611          1.77       1.00        1.70        16.29        17.11  

SAST SA Global Index Allocation 60/40 Portfolio Class 3

      2,909,112        10.79        10.92        31,616,986          0.00       1.00        1.70        15.88        16.70  

SAST SA Global Index Allocation 75/25 Portfolio Class 1

      5,217           11.06        57,683          0.00          0.55           20.06  

SAST SA Global Index Allocation 75/25 Portfolio Class 3

      2,902,786        10.76        10.93        31,581,446          0.00       1.00        1.95        18.05        19.18  

SAST SA Global Index Allocation 90/10 Portfolio Class 1

      71,789        11.00        11.08        793,997          0.00       0.40        0.80        22.28        22.77  

SAST SA Global Index Allocation 90/10 Portfolio Class 3

      11,822,681        10.79        10.92        128,518,535          0.00       1.00        1.70        20.92        21.77  

SAST SA Goldman Sachs Global Bond Portfolio Class 1

      848,448        10.87        14.39        19,392,656          0.00       0.55        1.77        4.99        6.28  

SAST SA Goldman Sachs Global Bond Portfolio Class 2

      223,280        20.70        22.37        4,953,642          0.00       1.52        1.97        4.65        5.12  

SAST SA Goldman Sachs Global Bond Portfolio Class 3

      14,671,530        10.11        11.38        207,424,846          0.00       1.00        2.30        4.18        5.55  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 1

      655           11.18        7,326          2.12          0.40           18.59  

SAST SA Goldman Sachs Multi-Asset Insights Portfolio Class 3

      1,627,092        10.74        10.97        17,736,976          2.46       1.00        1.95        16.52        17.63  

SAST SA Index Allocation 60/40 Portfolio Class 1

      3,171           12.54        39,778          0.00          0.55           19.25  

SAST SA Index Allocation 60/40 Portfolio Class 3

      9,054,020        12.04        12.29        110,358,370          0.00       1.00        1.70        17.55        18.38  

SAST SA Index Allocation 80/20 Portfolio Class 1

      131,476        13.06        13.12        1,718,802          0.00       0.40        0.55        23.21        23.40  

SAST SA Index Allocation 80/20 Portfolio Class 3

      16,349,098        12.45        12.80        207,511,352          0.00       1.00        1.95        21.26        22.42  

SAST SA Index Allocation 90/10 Portfolio Class 1

      200,686        13.32        13.38        2,676,320          0.00       0.40        0.55        25.22        25.41  

SAST SA Index Allocation 90/10 Portfolio Class 3

      45,263,528        12.70        13.05        586,183,530          0.00       1.00        1.95        23.11        24.28  

SAST SA International Index Portfolio Class 1

      91,502           10.26        939,193          0.00          0.55           20.53  

SAST SA International Index Portfolio Class 3

      376,044        10.35        10.48        3,924,596          0.10       1.15        1.70        18.81        19.47  

SAST SA Invesco Growth Opportunities Portfolio Class 1

      584,174        11.68        13.22        8,080,815          0.00       0.55        1.77        26.71        28.26  

SAST SA Invesco Growth Opportunities Portfolio Class 2

      226,469        12.46        13.50        3,030,330          0.00       1.52        1.97        26.18        26.74  

SAST SA Invesco Growth Opportunities Portfolio Class 3

      6,464,009        18.19        23.45        118,572,053          0.00       1.00        2.30        25.77        27.41  

SAST SA Janus Focused Growth Portfolio Class 1

      461,291        13.08        28.75        13,853,744          0.02       0.40        1.77        33.83        35.67  

SAST SA Janus Focused Growth Portfolio Class 2

      307,301        28.05        29.32        8,931,106          0.00       1.52        1.77        33.65        33.98  

SAST SA Janus Focused Growth Portfolio Class 3

      3,558,899        20.56        24.27        96,873,773          0.00       1.00        2.30        32.86        34.60  

SAST SA JPMorgan Diversified Balanced Portfolio Class 1

      1,606,841        12.19        16.29        48,023,385          1.97       0.40        1.77        16.88        18.49  

SAST SA JPMorgan Diversified Balanced Portfolio Class 2

      359,583        27.24        29.46        10,532,417          1.30       1.52        1.97        16.49        17.01  

SAST SA JPMorgan Diversified Balanced Portfolio Class 3

      7,156,898        14.95        17.21        146,452,520          2.08       1.00        2.30        16.02        17.54  

SAST SA JPMorgan Emerging Markets Portfolio Class 1

      878,658        9.83        20.35        18,695,795          2.95       0.40        1.77        19.01        20.65  

SAST SA JPMorgan Emerging Markets Portfolio Class 2

      147,875        19.18        20.76        3,042,380          2.86       1.52        1.97        18.51        19.05  

SAST SA JPMorgan Emerging Markets Portfolio Class 3

      6,722,921        10.97        11.58        103,838,724          2.77       1.00        2.30        18.05        19.60  

SAST SA JPMorgan Equity-Income Portfolio Class 1

      1,802,201        12.32        21.45        125,680,120          2.43       0.55        1.77        24.93        26.46  

SAST SA JPMorgan Equity-Income Portfolio Class 2

      153,827        63.57        68.92        10,490,215          2.04       1.52        1.97        24.51        25.07  

SAST SA JPMorgan Equity-Income Portfolio Class 3

      5,045,127        19.22        20.96        135,241,194          2.36       1.00        2.30        23.95        25.58  

SAST SA JPMorgan Global Equities Portfolio Class 1

      1,071,376        10.51        33.60        37,591,764          2.25       0.55        1.77        17.79        19.23  

SAST SA JPMorgan Global Equities Portfolio Class 2

      108,175        31.78        35.12        3,706,157          1.78       1.40        1.97        17.32        17.99  

SAST SA JPMorgan Global Equities Portfolio Class 3

      1,410,216        14.28        14.91        28,038,965          2.10       1.00        2.30        16.86        18.39  

SAST SA JPMorgan Large Cap Core Portfolio Class 1

      580,880        42.97        45.07        26,140,659          1.19       1.52        1.77        29.60        29.93  

SAST SA JPMorgan Large Cap Core Portfolio Class 2

      81,452        40.48        43.86        3,549,185          0.91       1.52        1.97        29.13        29.71  

SAST SA JPMorgan Large Cap Core Portfolio Class 3

      2,047,056        19.16        20.86        57,141,250          1.02       1.00        2.30        28.59        30.27  

SAST SA JPMorgan MFS Core Bond Portfolio Class 1

      1,361,753        11.16        29.76        42,035,477          2.71       0.40        1.77        7.55        9.03  

SAST SA JPMorgan MFS Core Bond Portfolio Class 2

      250,513        28.94        30.30        7,548,295          2.10       1.52        1.77        7.40        7.67  

SAST SA JPMorgan MFS Core Bond Portfolio Class 3

      37,382,432        10.82        13.41        633,887,209          2.74       1.00        2.30        6.56        7.95  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1

      1,220,138        12.88        18.47        39,239,784          0.00       0.40        1.77        37.13        39.02  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 2

      480,215        29.18        32.38        15,034,433          0.00       1.40        1.97        36.68        37.46  

SAST SA JPMorgan Mid-Cap Growth Portfolio Class 3

      3,604,392        21.76        28.92        112,120,517          0.00       1.00        2.30        36.08        37.86  

SAST SA Large Cap Growth Index Portfolio Class 1

      46,466           12.53        582,420          0.00          0.55           29.92  

SAST SA Large Cap Growth Index Portfolio Class 3

      417,934        12.25        12.40        5,155,480          0.02       1.00        1.70        28.20        29.10  

SAST SA Large Cap Index Portfolio Class 3

      1,471,907        12.57        12.77        18,613,266          0.02       1.00        1.70        28.41        29.31  

SAST SA Large Cap Value Index Portfolio Class 1

      33,231           12.24        406,753          0.01          0.55           30.81  

SAST SA Large Cap Value Index Portfolio Class 3

      384,986        11.96        12.10        4,632,952          0.04       1.00        1.70        29.03        29.94  

SAST SA MFS Blue Chip Growth Portfolio Class 1

      510,878        14.87        18.97        8,023,280          0.59       1.52        1.77        29.90        30.23  

SAST SA MFS Blue Chip Growth Portfolio Class 2

      210,752        14.07        15.21        3,175,985          0.36       1.52        1.97        29.55        30.14  

SAST SA MFS Blue Chip Growth Portfolio Class 3

      4,556,972        21.39        23.02        94,474,080          0.37       1.00        2.30        28.87        30.56  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 1

      844,619        12.36        25.42        48,088,946          0.92       0.55        1.77        29.48        31.07  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 2

      148,668        52.46        56.60        8,338,235          0.67       1.52        1.97        29.09        29.68  

SAST SA MFS Massachusetts Investors Trust Portfolio Class 3

      7,057,065        19.56        23.48        225,270,232          0.64       1.00        2.30        28.51        30.19  

SAST SA MFS Total Return Portfolio Class 1

      2,190,385        12.39        22.00        106,304,110          2.23       0.40        1.77        18.25        19.88  

SAST SA MFS Total Return Portfolio Class 2

      483,185        44.47        48.12        22,991,542          2.13       1.52        1.97        17.78        18.32  

SAST SA MFS Total Return Portfolio Class 3

      6,910,281        14.82        16.56        184,317,565          2.15       1.00        2.30        17.33        18.86  

SAST SA Mid Cap Index Portfolio Class 1

      1,255           11.12        13,957          0.00          0.55           24.82  

SAST SA Mid Cap Index Portfolio Class 3

      695,761        11.07        11.31        7,819,510          0.00       1.00        1.95        22.78        23.95  

SAST SA Morgan Stanley International Equities Portfolio Class 1

      1,609,167        15.74        16.51        26,550,405          2.35       1.52        1.77        18.52        18.81  

SAST SA Morgan Stanley International Equities Portfolio Class 2

      578,876        14.87        16.08        9,231,971          2.17       1.52        1.97        18.03        18.56  

SAST SA Morgan Stanley International Equities Portfolio Class 3

      7,251,764        10.93        11.59        103,291,412          2.31       1.00        2.30        17.46        19.00  

SAST SA PIMCO RAE International Value Portfolio Class 2

      521,383        17.97        19.69        10,209,894          0.09       1.52        1.97        9.86        10.35  

SAST SA PIMCO RAE International Value Portfolio Class 3

      23,808,636        9.99        10.80        330,274,799          0.08       1.00        2.30        9.35        10.78  

SAST SA PIMCO VCP Tactical Balanced Portfolio Class 3

      83,674,404        11.80        13.23        1,165,508,351          0.00       1.00        2.15        16.24        17.58  

SAST SA PineBridge High-Yield Bond Portfolio Class 1

      1,062,003        33.65        35.24        37,372,402            7.18       1.52        1.77        12.86        13.15  

 

 

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VARIABLE SEPARATE ACCOUNT

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

 

       December 31, 2019            For the Year Ended December 31, 2019  
        Unit Value ($)(a)(f)        Net         
 Investment
Income		  
 		     Ratio (%)(d)(f)        Return (%)(e)(f)  

Sub-accounts 

      Units        Lowest        Highest        Assets ($)(b)            Ratio (%)(c)       Lowest        Highest        Lowest        Highest  

SAST SA PineBridge High-Yield Bond Portfolio Class 2

      228,772        31.64        34.30        7,770,036          6.27       1.52        1.97        12.44        12.95  

SAST SA PineBridge High-Yield Bond Portfolio Class 3

      4,641,329        12.94        15.25        97,140,054          7.46       1.00        2.30        11.86        13.32  

SAST SA Putnam International Growth and Income Portfolio Class 1

      1,324,612        12.00        17.87        23,063,747          2.40       1.40        1.77        18.21        18.65  

SAST SA Putnam International Growth and Income Portfolio Class 2

      272,386        15.84        17.08        4,607,180          2.19       1.52        1.97        17.77        18.31  

SAST SA Putnam International Growth and Income Portfolio Class 3

      6,012,443        11.37        15.21        89,195,939          2.22       1.10        2.17        17.45        18.72  

SAST SA Schroders VCP Global Allocation Portfolio Class 1

      14,554        11.99        12.05        174,914          2.09       0.40        0.55        18.67        18.84  

SAST SA Schroders VCP Global Allocation Portfolio Class 3

      43,336,439        11.44        12.34        551,865,273          1.39       1.00        2.15        16.39        17.73  

SAST SA Small Cap Index Portfolio Class 1

      3,948        10.85        10.88        42,919          0.00       0.40        0.55        24.00        24.19  

SAST SA Small Cap Index Portfolio Class 3

      633,638        10.70        10.92        6,875,897          0.00       1.00        1.95        22.10        23.26  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 1

      15,922        12.00        12.04        191,336          1.44       0.40        0.55        23.99        24.17  

SAST SA T. Rowe Price Asset Allocation Growth Portfolio Class 3

      15,476,317        11.57        11.82        181,776,562          1.10       1.00        1.95        21.86        23.02  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 1

      6,836           13.03        89,101          1.55          0.55           21.78  

SAST SA T. Rowe Price VCP Balanced Portfolio Class 3

      95,116,540        12.28        13.30        1,305,919,982          1.45       1.00        2.15        19.67        21.06  

SAST SA VCP Dynamic Allocation Portfolio Class 1

      16,851        12.93        13.03        219,556          0.00       0.55        0.80        19.85        20.15  

SAST SA VCP Dynamic Allocation Portfolio Class 3

      555,505,119        12.28        14.66        8,625,244,704          0.00       1.00        2.15        17.83        19.20  

SAST SA VCP Dynamic Strategy Portfolio Class 1

      17,251           12.73        219,559          0.00          0.55           19.07  

SAST SA VCP Dynamic Strategy Portfolio Class 3

      362,907,326        12.06        14.29        5,476,551,697          0.00       1.00        2.15        16.87        18.22  

SAST SA VCP Index Allocation Portfolio Class 3

      28,329,526        11.36        11.60        326,664,409          0.08       1.00        1.95        20.62        21.77  

SAST SA Wellington Capital Appreciation Portfolio Class 1

      2,181,248        12.23        40.76        366,463,071          0.00       0.40        1.77        28.87        30.64  

SAST SA Wellington Capital Appreciation Portfolio Class 2

      304,837        143.75        156.96        46,493,145          0.00       1.40        1.97        28.40        29.13  

SAST SA Wellington Capital Appreciation Portfolio Class 3

      7,462,122        23.82        34.70        442,546,761          0.00       1.00        2.30        27.87        29.54  

SAST SA Wellington Government and Quality Bond Portfolio Class 1

      2,676,704        10.93        14.62        65,858,921          2.23       0.40        1.77        5.44        6.89  

SAST SA Wellington Government and Quality Bond Portfolio Class 2

      990,332        20.20        21.89        21,491,414          2.14       1.52        1.97        5.10        5.58  

SAST SA Wellington Government and Quality Bond Portfolio Class 3

      28,013,342        10.69        11.52        439,617,906          2.37       1.00        2.30        4.62        5.99  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 1

      198,764        12.26        72.33        14,244,502          0.00       0.40        1.40        17.42        18.60  

SAST SA Wellington Strategic Multi-Asset Portfolio Class 3

      3,631,790        11.97        12.25        44,056,601          0.00       1.00        1.70        16.87        17.69  

VALIC Company I International Equities Index Fund

      453,139        11.77        11.79        5,326,758          3.32       1.10        1.40        19.61        19.97  

VALIC Company I International Socially Responsible Fund

      77,005        13.98        14.59        1,112,681          1.79       1.10        1.40        24.23        24.60  

VALIC Company I Mid Cap Index Fund

      298,461        14.11        15.22        4,437,633          1.36       1.10        1.40        23.96        24.34  

VALIC Company I Nasdaq-100 Index Fund

      169,983        18.30        21.01        3,496,878          0.39       1.10        1.70        36.33        37.15  

VALIC Company I Small Cap Index Fund

      243,970        12.87        15.24        3,556,921          1.11       1.10        1.70        23.04        23.78  

VALIC Company I Stock Index Fund

      787,087        15.28        16.92        13,142,385            1.49       1.10        1.70        28.88        29.66  

 

(a)

Because the unit values are presented as a range of lowest to highest, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract unit values are not within the ranges presented.

 

(b)

These amounts represent the net asset value before adjustments allocated to the contracts in payout period.

 

(c)

These amounts represent the dividends, excluding distributions of capital gains, received by the sub-account from the Funds, net of management fees assessed by the portfolio manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the sub-account is affected by the timing of the declaration of dividends by the Funds in which the sub-account invests. The average net assets are calculated using the net asset balances at the beginning and end of the year. If there are no assets at either the beginning or end of the year, the asset balance of the first or last day the sub-account had assets is used.

 

(d)

These amounts represent the annualized contract expenses of the sub-account, consisting of distribution, mortality and expense charges, for each period indicated. The ratios include only those expenses that result in direct reduction to unit values. Charges made directly to the contract owners account through the redemption of units and expenses of the Funds have been excluded. For additional information on charges and deductions, see Note 4.

 

(e)

These amounts represent the total return for the periods indicated, including changes in the value of the Funds, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each of the periods indicated or from the effective date through the end of the reporting period. Because the total return is presented as a range of minimum and maximum values, based on the product grouping representing the minimum and maximum expense ratios, some individual contract total returns are not within the ranges presented.

 

(f)

A blank in the lowest unit value, lowest expense ratio and lowest total return columns indicates that the lowest value is the same as the highest value.

 

7.

Subsequent Events

Management considered Separate Accounts related events and transactions that occurred after the date of the Statement of Assets and Liabilities, but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that required additional disclosures. Management has evaluated events through the date the financial statements were issued.

 

 

93

Table of Contents

American General Life Insurance Company

(An indirect wholly owned subsidiary of Corebridge Financial, Inc.)

Statutory Financial Statements and

Supplemental Information and

Report of Independent Auditors

At December 31, 2023 and 2022 and

for each of the three years ended December 31, 2023

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

TABLE OF CONTENTS

 

STATUTORY FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION    Page  

Report of Independent Auditors

      2  

Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus at December 31, 2023 and 2022

      4  

Statutory Statements of Operations for the Years Ended December  31, 2023, 2022 and 2021

      6  

Statutory Statements of Changes in Capital and Surplus for the Years Ended December 31, 2023, 2022 and 2021

      7  

Statutory Statements of Cash Flows for the Years Ended December  31, 2023, 2022 and 2021

      8  

Notes to Statutory Financial Statements

      10  

Supplemental Schedule of Selected Financial Data

      73  

Supplemental Investment Risks Interrogatories

      75  

Supplemental Summary Investment Schedule

      81  

Supplemental Schedule of Reinsurance Disclosures

      82  

 

 
1

Table of Contents

Report of Independent Auditors

To the Board of Directors and Shareholder of American General Life Insurance Company

Opinions

We have audited the accompanying statutory financial statements of American General Life Insurance Company (the “Company”), which comprise the statutory statements of admitted assets, liabilities and capital and surplus as of December 31, 2023 and 2022, and the related statutory statements of operations, of changes in capital and surplus, and of cash flows for each of the three years in the period ended December 31, 2023, including the related notes (collectively referred to as the “financial statements”).

Unmodified Opinion on Statutory Basis of Accounting

In our opinion, the accompanying financial statements present fairly, in all material respects, the admitted assets, liabilities and capital and surplus of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in accordance with the accounting practices prescribed or permitted by the Texas Department of Insurance described in Note 2.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the accompanying financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2023 and 2022, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2023.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 2 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the Texas Department of Insurance, which is a basis of accounting other than accounting principles generally accepted in the United States of America.

The effects on the financial statements of the variances between the statutory basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the Texas Department of Insurance. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date the financial statements are available to be issued.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of

 

 
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not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with US GAAS, we:

 

  ○   

Exercise professional judgment and maintain professional skepticism throughout the audit.

 

  ○   

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

 

  ○   

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.

 

  ○   

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

 

  ○   

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Supplemental Information

Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental schedule of selected financial data, investment risks interrogatories, summary investment schedule, and schedule of reinsurance disclosures (collectively referred to as the “supplemental schedules”) of the Company as of December 31, 2023 and for the year then ended are presented to comply with the National Association of Insurance Commissioners’ Annual Statement Instructions and Accounting Practices and Procedures Manual and for purposes of additional analysis and are not a required part of the financial statements. The supplemental schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves and other additional procedures, in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental schedules are fairly stated, in all material respects, in relation to the financial statements taken as a whole.

/s/ PricewaterhouseCoopers LLP

New York, New York

April 18, 2024

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND CAPITAL AND SURPLUS

 

      December 31,  
 (in millions)    2023      2022  

Admitted assets

      

Cash and investments

    $   112,132      $   108,455  

Bonds

Preferred stock

      80        93  

Common stock

      266        927  

Cash, cash equivalents and short-term investments

      900        951  

Mortgage loans

      29,652        25,131  

Real estate

      75        9  

Contract loans

      1,157        1,138  

Derivatives

      1,884        466  

Derivative cash collateral and deferred asset for SSAP 108

      1,985        1,660  

Other invested assets

      6,556        7,940  

Total cash and investments

      154,687        146,770  

Amounts recoverable from reinsurers

      251        270  

Amounts receivable under reinsurance contracts

      520        492  

Current federal income tax recoverable

      337        232  

Deferred tax asset

      1,164        1,087  

Due and accrued investment income

      1,413        1,136  

Premiums due, deferred and uncollected

      62        153  

Receivables from affiliates

      222        263  

Other assets

      2,323        1,515  

Separate account assets

      68,792        59,701  

Total admitted assets

    $ 229,771      $ 211,619  

 See accompanying Notes to Statutory Financial Statements.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

STATUTORY STATEMENTS OF ADMITTED ASSETS, LIABILITIES AND CAPITAL AND SURPLUS (CONTINUED)

 

      December 31,  
 (in millions, except for share data)    2023      2022  

Liabilities

      

Policy reserves and contractual liabilities

    $   113,699      $   108,850  

Life and annuity reserves

Liabilities for deposit-type contracts

      14,014        12,316  

Accident and health reserves

      697        711  

Premiums received in advance

      10        10  

Policy and contract claims

      657        715  

Policyholder dividends

      17        17  

Total policy reserves and contractual liabilities

      129,094        122,619  

Payable to affiliates

      224        483  

Interest maintenance reserve

      1,389        1,804  

Derivatives

      953        807  

Repurchase agreements

      1,623        1,725  

Collateral for derivatives program

      1,729        205  

Funds held under coinsurance

      12,849        11,826  

Accrued expenses and other liabilities

      3,598        2,424  

Net transfers from separate accounts due or accrued

      (1,745)        (1,323)  

Asset valuation reserve

      2,343        1,681  

Separate account liabilities

      68,785        59,618  

Total liabilities

      220,842        201,869  

Commitments and contingencies (see Note 21)

      

Capital and surplus

      6        6  

Common stock, $10 par value; 600,000 shares authorized, issued and outstanding

Preferred stock, $100 par value; 8,500 shares authorized, issued and outstanding

      1        1  

Gross paid-in and contributed surplus

      5,410        5,410  

Special surplus funds

      1,279        916  

Unassigned surplus

      2,233        3,417  

Total capital and surplus

      8,929        9,750  

Total liabilities and capital and surplus

    $ 229,771      $ 211,619  

 See accompanying Notes to Statutory Financial Statements.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

STATUTORY STATEMENTS OF OPERATIONS

 

      December 31,  
 (in millions)    2023      2022      2021  

Revenues

         

Premiums and annuity considerations

    $   23,157      $   39,948      $   15,409  

Net investment income

      6,574        7,172        7,503  

Amortization of interest maintenance reserve

      113        123        162  

Reserve adjustments on reinsurance ceded

      (4,276)        (2,112)        (2,273)  

Commissions and expense allowances

      679        779        703  

Separate account fees

      902        1,648        1,845  

Other income

      1,018        741        578  

Total revenues

      28,167        48,299        23,927  

Benefits and expenses

         

Death benefits

      749        811        736  

Annuity benefits

      3,244        2,652        2,806  

Surrender benefits

      15,931        9,350        8,453  

Other benefits

      1,077        692        668  

Change in reserves

      4,817        4,769        2,729  

Commissions

      1,519        2,672        1,099  

General insurance expenses

      946        928        978  

Net transfers to (from) separate accounts

      2,078        1,109        1,682  

Modco reinsurance assumed

      (3,394)        22,095        —  

Other expenses

      742        716        704  

Total benefits and expenses

      27,709        45,794        19,855  

Net gain from operations before dividends to policyholders and federal income taxes

      457        2,505        4,072  

Dividends to policyholders

      2        6        1   

Net gain from operations after dividends to policyholders and before federal income taxes

      455        2,499        4,071  

Federal income tax (benefit) expense

      (52)        518        1,422  

Net gain from operations

      507         1,981        2,649  

Net realized capital (losses), net of tax after transfers to interest maintenance reserves

      (363)        (1,190)        (405)  

Net income

    $ 144       $ 791      $ 2,244  

 See accompanying Notes to Statutory Financial Statements.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

STATUTORY STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS

 

           
 (in millions)   

Common &

Preferred

Stock

     

Gross Paid-
In and
Contributed

Surplus

     

Special

Surplus

Funds

    

Unassigned

Surplus

    

Total Capital

and Surplus

  

Balance, January 1, 2021

    $      7      $    3,510      $     (128 )    $     4,122       7,511  

Net income

      —        —        —       2,244       2,244  

Change in net unrealized capital gains (losses)

      —        —        —       206       206  

Change in net unrealized foreign exchange capital gains (losses)

      —        —        —       (267 )      (267 ) 

Change in deferred tax

      —        —        —       853       853  

Change in non-admitted assets

      —        —        —       (587 )      (587 ) 

Change in asset valuation reserve

      —        —        —       (205 )      (205 ) 

Change in surplus from separate accounts

      —        —        —       450       450  

Other changes in surplus in separate accounts

      —        —        —       (450 )      (450 ) 

Change in surplus as a result of reinsurance

      —        —        —       (2 )      (2 ) 

Dividends

      —        —        —       (1,045 )      (1,045 ) 

Prior period corrections

      —        —        —       (161 )      (161 ) 

Reinsurance permitted practice

      —        —        —       (30 )      (30 ) 

Other changes

      —        —        254       (239 )      15  

Balance, December 31, 2021

    $ 7      $ 3,510      $ 126     $ 4,889       8,532  

Net income

      —        —        —       791       791  

Change in net unrealized capital gains (losses)

      —        —        —       (694 )      (694 ) 

Change in net unrealized foreign exchange capital gains (losses)

      —        —        —       (705 )      (705 ) 

Change in deferred tax

      —        —        —       (40 )      (40 ) 

Change in non-admitted assets

      —        —        —       (84 )      (84 ) 

Change in liability for reinsurance in unauthorized and certified companies

      —        —        —       (22 )      (22 ) 

Change in asset valuation reserve

      —        —        —       621       621  

Change in surplus from separate accounts

      —        —        —       296       296  

Other changes in surplus in separate accounts

      —        —        —       (296 )      (296 ) 

Additional paid in surplus

      —        1,900        —       —       1,900  

Change in surplus as a result of reinsurance

      —        —        —       (256 )      (256 ) 

Dividends

      —        —        —       (800 )      (800 ) 

Prior period corrections

      —        —        —       73       73  

Reinsurance permitted practice

      —        —        —       433       433  

Other changes

      —        —        790       (789 )      1  

Balance, December 31, 2022

    $ 7      $ 5,410      $ 916     $ 3,417       9,750  

Net income

      —        —        —       144       144  

Change in net unrealized capital gains (losses)

      —        —        —       58       58  

Change in net unrealized foreign exchange capital gains (losses)

      —        —        —       492       492  

Change in deferred tax

      —        —        —       167       167  

Change in non-admitted assets

      —        —        —       (7 )      (7 ) 

Change in liability for reinsurance in unauthorized and certified companies

      —        —        —       21       21  

Change in asset valuation reserve

      —        —        —       (662 )      (662 ) 

Change in surplus from separate accounts

      —        —        —       (367 )      (367 ) 

Other changes in surplus in separate accounts

      —        —        —       367       367  

Additional paid in surplus

      —        —        —       —       —  

Change in surplus as a result of reinsurance

      —        —        —       249       249  

Dividends

      —        —        —       (2,000 )      (2,000 ) 

Prior period corrections

      —        —        —       (8 )      (8 ) 

Reinsurance permitted practice

      —        —        —       725       725  

Other changes

      —        —        363       (363 )      —  

Balance, December 31, 2023

    $ 7      $ 5,410      $ 1,279     $ 2,233     $ 8,929  

 See accompanying Notes to Statutory Financial Statements.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

STATUTORY STATEMENTS OF CASH FLOWS

 

      December 31,  
 (in millions)    2023      2022      2021  

Cash from operations

         

Premium and annuity considerations, collected, net of reinsurance

    $   23,059      $   18,180      $   13,618  

Net investment income collected

      5,711        6,547        6,966  

Other income

      (1,038)        557        851  

Total revenue received

      27,732        25,284        21,435  

Benefits paid

      21,098        13,473        12,474  

Net transfers to (from) separate accounts

      (2,569)        536        2,192  

Commissions and expenses paid

      2,447        3,584        2,129  

Dividends paid to policyholders

      3        2        4   

Federal income taxes paid

      (26)        1,089        1,227  

Total benefits and expenses paid

      20,953        18,684        18,026  

Net cash provided by operations

      6,779        6,600        3,409  

Cash from investments

         

Proceeds from investments sold, matured or repaid:

         

Bonds

      8,775        15,962        23,554  

Stocks

      144        498        233  

Mortgage loans

      3,446        3,005        3,082  

Other invested assets

      1,436        1,136        2,057  

Securities lending reinvested collateral assets

      —        1,727        —  

Other, net

      —        124        421  

Total proceeds from investments sold, matured or repaid

      13,801        22,452        29,347  

Cost of investments acquired:

         

Bonds

      16,318        17,824        24,029  

Stocks

      43        300        643  

Mortgage loans

      7,349        6,465        4,066  

Real estate

      —        1        1  

Derivatives, net

      2,103        823        407  

Other invested assets

      952        2,791        2,496  

Securities lending reinvested collateral assets

      —        —        35  

Other, net

      539        1,878        127  

Total cost of investments acquired

      27,304        30,082        31,804  

Net adjustment in contract loans

      15         (26)        (69)  

Net cash provided by (used in) investing activities

      (13,518)        (7,604)        (2,388)  

Cash from financing and miscellaneous sources

         

Cash provided (applied):

         

Capital and paid-in surplus

      —        1,900         —  

Net deposits on (withdrawals from) deposit-type contracts

      1,698        (11)        (707)  

Dividends to parent

      (2,000)        (800)        (750)  

Change in securities lending

      —        (2,426)        747   

Other, net

      6,988        2,490         (568)  

Net cash provided by (used in) provided by financing and miscellaneous activities

      6,686        1,153         (1,278)  

Net increase (decrease) in cash, cash equivalents and short-term investments

      (51)        149         (257)  

Cash, cash equivalents and short-term investments at beginning of year

      951        802        1,059  

Cash, cash equivalents and short-term investments at end of year

    $ 900      $ 951      $ 802  
                            

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

STATUTORY STATEMENTS OF CASH FLOWS

 

   
     December 31,  
(in millions)    2023      2022      2021  

Non-cash activities, excluded from above:

         

Non-cash transfer from separate to general account

    $   4,068      $ —      $ —  

Non-cash transfer from general to separate account

      1,002        —        —  

Non-cash AGLIC -Bermuda redemption

      642        —        —  

Non-cash transfer from other invested assets to bonds

      456        —        —  

Non-cash transfer from other invested assets to mortgage loans

      425        12        154  

Non-cash Modco to FRL settlements

      274        204        448  

Non-cash Hannover reinsurance transaction

      253        —        —  

Non-cash Modco adjustment on assumed reinsurance

      —         22,924        —  

Non-cash transfer from other invested assets to common stocks

      1        —        34  

Non-cash pension risk transfer premiums

      —        1,159          1,809  

Settlement of non-cash dividends payable

      —        —        295  

See accompanying Notes to Statutory Financial Statements.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS

 

1. NATURE OF OPERATIONS

 

 

American General Life Insurance Company (“AGL” or the “Company”), including its wholly owned subsidiaries, is a wholly owned subsidiary of AGC Life Insurance Company (“AGC Life” or the “Parent”), a Missouri-domiciled life insurance company, which is wholly owned by Corebridge Life Holdings, Inc. (formerly known as AIG Life Holdings, Inc.) (“Corebridge Life Holdings”). Corebridge Life Holdings is wholly owned by Corebridge Financial, Inc. (“Corebridge”), which American International Group, Inc. (“AIG”) owns 52.2% of their outstanding common stock as of December 31, 2023. AIG is a holding company, which through its subsidiaries provides a wide range of property casualty insurance, life insurance, retirement products and other financial services to commercial and individual customers in more than 190 countries and jurisdictions. The term “AIG” means American International Group, Inc. and not any of AIG’s consolidated subsidiaries.

The Company is a stock life insurance company domiciled and licensed under the laws of the State of Texas and is subject to regulation by the Texas Department of Insurance (“TDI”). The Company is also subject to regulation by the states in which it is authorized to transact business. The Company is licensed in 49 states and the District of Columbia.

The Company is a leading provider in the United States of individual term and universal life insurance solutions to middle-income and high-net-worth customers, as well as a leading provider in the United States of fixed and variable annuities. The Company’s primary products include term life insurance, universal, variable universal and whole life insurance, accident and health insurance, single- and flexible-premium deferred fixed and variable annuities, fixed index deferred annuities, single-premium immediate and delayed-income annuities, private placement variable annuities, private placement variable universal life, structured settlements, corporate- and bank-owned life insurance, pension risk transfer annuities, guaranteed investment contracts, funding agreements, stable value wrap products and group benefits. The Company distributes its products through a broad multi-channel distribution network, which includes independent marketing organizations, independent insurance agents and financial advisors, banks, broker dealers, structured settlement brokers and benefit consultants and direct-to-consumer through Corebridge Direct Insurance Services, Inc. (formerly known as AIG Direct Insurance, Inc.) (“Corebridge Direct”).

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

 

Basis of Presentation

The financial statements of the Company are presented on the basis of accounting practices prescribed or permitted by the TDI. These accounting practices vary in certain respects from accounting principles generally accepted in the United States of America (“U.S. GAAP”), as described herein.

The TDI recognizes only statutory accounting practices (“SAP”) prescribed or permitted by the State of Texas for determining and reporting the financial condition and results of operations of an insurance company and for determining its solvency under the Texas Insurance Law. The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of prescribed or permitted practices by the State of Texas. The Insurance Commissioner of the State of Texas has the right to permit other specific practices that deviate from prescribed practices.

At December 31, 2023, 2022 and 2021, the Company used the following permitted practices that resulted in reported statutory surplus or risk-based capital that is different from the statutory surplus or risk-based capital that would have been reported had NAIC statutory accounting practices or the prescribed regulatory accounting practices of the TDI been followed in all respects:

Effective December 31, 2020 and periods through September 30, 2023, the Company renewed a permitted statutory accounting practice to recognize an admitted asset related to the notional value of coverage defined in an excess of loss (“XOL”) reinsurance agreement with a 20-year term that provides coverage to the Company for aggregate claims incurred during the agreement term associated with guaranteed living benefits on certain fixed index annuities generally issued prior to April 2019 (“Block 1”) exceeding an attachment point as defined in the agreement. This permitted practice was previously expanded on October 1, 2020 to similarly recognize an additional admitted asset related to the net notional value of coverage as defined in a separate XOL reinsurance agreement with a 25-year term that provides coverage to the Company for aggregate XOL claims associated with guaranteed living benefits on a block of fixed index annuities generally issued in April 2019 or later, including certain new business issued after the effective date of October 1, 2020 (“Block 2”).

Effective September 30, 2023, the permitted practice for Block 1 and Block 2 was extended through September 30, 2026 and the maximum notional value of Block 2 was increased for certain new business. Effective October 1, 2022 and periods through September 30, 2023, this permitted practice was expanded to similarly recognize an additional admitted asset related to the net notional value of coverage as defined in a separate XOL agreement with a 25-year term that provides coverage to the Company for aggregate XOL claims associated with the base contract along with the guaranteed living benefits rider on a block of fixed annuities inforce on October 1, 2022, including certain new business issued after the effective date of October 1, 2022 (“Block 3”). Effective September 30, 2023, the permitted practice for Block 3 was extended through September 30, 2026 and the maximum notional value was increased for certain new business.

The value of the assets subject to the above permitted practices was approximately $1,742 million, $1,017 million and $584 million in total at December 31, 2023, 2022 and 2021 respectively and are reported in Other assets.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The following table presents a reconciliation of the Company’s net income and capital and surplus between NAIC SAP and practices prescribed or permitted by the State of Texas:

 

          December 31,  
 (in millions)    SSAP#     2023       2022     2021  

 NET INCOME

           

 State basis

       $ 144       $ 791     $ 2,244  

 Net (loss) income, NAIC SAP

         $ 144       $ 791     $ 2,244  

 SURPLUS

           

 State basis

       $ 8,929      $ 9,750     $ 8,532  

 State permitted practices that increase (decrease) NAIC SAP:

           

XoL reinsurance agreement

    4      (1,742)        (1,017 )      (584)  

 Statutory capital and surplus, NAIC SAP

         $   7,187      $   8,733     $   7,948  

In the event the Company had not employed any or all of these permitted and prescribed practices, the Company’s risk-based capital (“RBC”) would not have triggered a regulatory event.

Certain prior year amounts have been reclassified to conform to the current year presentation.

The statement of cash flows in this report has balances that are different from those in the annual statement filed with the NAIC. The annual statement for 2023 had net cash provided by operations, investments and financing of $6.3 billion, $(12.9) billion and $6.5 billion, respectively, while this report has $6.8 billion, $(13.5) billion and $6.7 billion, respectively.

Use of Estimates

The preparation of financial statements in conformity with accounting practices prescribed or permitted by the TDI requires management to make estimates and assumptions that affect the reported amounts in the statutory financial statements and the accompanying notes. It also requires disclosure of contingent assets and liabilities at the date of the statutory financial statements and the reported amounts of revenue and expense during the period. The areas of significant judgments and estimates include the following:

 

•  

application of other-than-temporary impairments;

 

•  

estimates with respect to income taxes, including recoverability of deferred tax assets;

 

•  

fair value measurements of certain financial assets; and

 

•  

policy reserves for life, annuity and accident and health insurance contracts, including guarantees.

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, the Company’s Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus, Statutory Statements of Operations and Statutory Statements of Cash Flows could be materially affected.

Significant Accounting Policies

Bonds not backed by other loans are carried at amortized cost except for those with a NAIC designation of “6” or “6*”. Bonds with a NAIC 6 designation are carried at the lower of amortized cost or fair value, with unrealized losses charged directly to unassigned surplus. Bonds that have not been filed and have not received a designation in over one year from the NAIC’s Investment Analysis Office (“IAO”) receive a “6*” designation and are carried at zero, with the unrealized loss charged directly to unassigned surplus. Bonds filed with the IAO which receive a “6*” designation may carry a value greater than zero. Securities are assigned a NAIC 5* designation if the Company certifies that (1) the documentation necessary to permit a full credit analysis does not exist, (2) the issuer or obligor is current on all contracted interest and principal payments and (3) the Company has an actual expectation of ultimate repayment of all contracted interest and principal. Securities with NAIC 5* designations are deemed to possess the credit characteristics of securities assigned a NAIC 5 designation. The discount or premium on bonds is amortized using the effective yield method.

 

 
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Loan-backed and structured securities (“LBaSS”) include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”), asset-backed securities (“ABS”), pass-thru securities, lease-backed securities, equipment trust certificates, loan-backed securities issued by special purpose corporations or trusts, and securities where there is not direct recourse to the issuer. LBaSS are carried on a basis consistent with that of bonds not backed by loans. Income recognition for LBaSS is determined using the effective yield method and estimated cash flows. Prepayment assumptions for single-class and multi-class mortgage-backed securities (“MBS”) and ABS were obtained from an outside vendor or internal estimates. The Company uses independent pricing services and broker quotes in determining the fair value of its LBaSS. The Company uses the retrospective adjustment method to account for the effect of unscheduled payments affecting high credit quality securities, while securities with less than high credit quality and securities for which the collection of all contractual cash flows is not probable are both accounted for using the prospective adjustment method.

Reference to “non-rated residual tranches or interests” intends to capture securitization tranches, beneficial interests, interests of structured finance investments, as well as other structures, that reflect loss layers without contractual interest or principal payments. Payments to holders of these investments occur after contractual interest and principal payments have been made to other tranches or interests and are based on the remaining available funds. Although payments to holders can occur throughout an investment’s duration (and not just at maturity), such instances still reflect the residual amount permitted to be distributed after other holders have received contractual interest and principal payments.

NAIC designations are determined with a multi-step approach. The initial designation is used to determine the carrying value of the security. The final NAIC designation is used for reporting and affects RBC. The final NAIC designation is determined for most RMBS and CMBS by financial modeling conducted by BlackRock. For credit tenant loans, equipment trust certificates, any corporate-like securities rated by the IAO, interest-only securities, and those securities with an original NAIC designation of 5, 5*, 6, or 6*, the final NAIC designation is based on the IAO or Credit Rating Provider rating and is not subject to financial modeling.

Redeemable preferred stocks with NAIC designations of “1” through “3” are carried at amortized cost. All other redeemable preferred stocks are stated at the lower of cost, amortized cost or fair value, with unrealized capital losses charged directly to unassigned surplus. Perpetual preferred stocks are valued at fair value, not to exceed any currently effective call price. Provisions made for impairment are recorded as realized capital losses when declines in fair value are determined to be other than temporary.

Unaffiliated common stocks are carried at fair value, with unrealized capital gains and losses credited or charged directly to unassigned surplus. Provisions made for impairment are recorded as realized capital losses when declines in fair value are determined to be other than temporary. For Federal Home Loan Bank (“FHLB”) capital stock, which is only redeemable at par, the fair value shall be presumed to be par, unless considered other-than-temporarily impaired.

Subsidiary, controlled, and affiliated (“SCA”) entities: The Company has no investments in insurance SCA entities. Investments in non-insurance SCA entities are recorded based on the equity of the investee per audited financial statements prepared pursuant to U.S. GAAP, which is adjusted to a statutory basis of accounting, if applicable. All investments in non-insurance SCA entities for which audited U.S. GAAP financial statements are not available are non-admitted as assets. Undistributed equity in earnings of affiliates is included in unassigned surplus as a component of unrealized capital gains or losses. Dividends received from such affiliates are recorded as investment income when declared.

Mortgage and mezzanine real estate loans are carried at unpaid principal balances less allowances for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on performing loans is accrued as earned.

Mortgage and mezzanine real estate loans are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on statistical models primarily driven by past due status, debt service coverage, loan-to-value ratio, property occupancy, profile of the borrower and of the major property tenants, and

 

 
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economic trends in the market where the property is located. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance.

Real estate consists of properties occupied by the Company, properties held for the production of income and properties held for sale. Properties occupied by the Company and held for the production of income are carried at depreciated cost, less encumbrances, unless events or circumstances indicate the carrying amount of the asset (amount prior to reduction for encumbrances) may not be recoverable. Properties held for sale are carried at the lower of its depreciated cost or fair value less estimated costs to sell the property and net of encumbrances. Real estate obtained through foreclosure, in satisfaction of a loan, is recorded at the time of foreclosure at the lower of fair value as determined by acceptable appraisal methodologies, or the carrying amount of the related loan. Land is reported at cost.

Cash, cash equivalents and short-term investments include cash on hand and amounts due from banks, highly liquid debt instruments that have original maturities within one year of date of purchase and are carried at amortized cost, interest-bearing money market funds, investment pools and other investments with original maturities within one year from the date of purchase.

Contract loans are carried at unpaid balances, which include unpaid principal plus accrued interest, including 90 days or more past due. All loan amounts in excess of the contract cash surrender value are considered non-admitted assets.

Derivative instruments used in hedging transactions that meet the criteria of a highly effective hedge are reported in a manner consistent with the hedged asset or liability (“hedge accounting”). Changes in statement value or cash flow of derivatives that qualify for hedge accounting are recorded consistently with how the changes in the statement value or cash flow of the hedged asset or liability are recorded. Derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge (“ineffective hedges”) are accounted for at fair value and the changes in fair value are recorded as unrealized gains or losses.

Statement of Statutory Accounting Principles (“SSAP”) 108, Derivatives Hedging Variable Annuity Guarantees, was used as allowed. SSAP 108 allows special accounting treatment for limited derivatives hedging variable annuity guarantee benefits subject to fluctuation as a result of interest rate sensitivity. Starting in 2022 the Company designated, under SSAP 86, Derivatives, certain foreign exchange derivatives as effective hedges of certain invested assets. During 2023, the Company also designated certain interest rate swaps as effective cash flow hedges of floating-rate investment assets.

Other invested assets principally consist of investments in limited partnerships and limited liability companies. Investments in these assets, except for joint ventures, partnerships and limited liability companies with a minor ownership interest, are reported using the equity method. Under SAP, such investments are generally reported based on audited U.S. GAAP equity of the investee, with subsequent adjustment to a statutory basis of accounting, if applicable.

Joint ventures, partnerships and limited liability companies in which the Company has a minor ownership interest (i.e., less than 10 percent) or lacks control, are generally recorded based on the underlying audited U.S. GAAP equity of the investee, with some prescribed exceptions. SAP allows the use of (a) the U.S. GAAP equity as set forth in the footnote reconciliation of foreign GAAP equity and income to U.S. GAAP within audited foreign GAAP financial statements or (b) the International Financial Reporting Standards (“IFRS”) basis equity in audited IFRS financial statements as an acceptable basis for the valuation of minor/non-controlled investments. The audited U.S. tax basis equity may also be used in certain circumstances.

All other investments in entities for which audited U.S. GAAP financial statements, or another acceptable audited basis of accounting as described above were not available have been non-admitted as assets. Undistributed accumulated earnings of such entities are included in unassigned surplus as a component of unrealized capital gains or losses. Distributions received that are not in excess of the undistributed accumulated earnings are recognized as investment income. Impairments that are determined to be other than temporary are recognized as realized capital losses.

Securities lending and repurchase agreements: The Company has a securities lending program, which was approved by its Board of Directors, and lends securities from its investment portfolio to supplement liquidity or for other uses as deemed appropriate by management. Under the program, securities are lent to financial institutions, and in return the Company receives cash as collateral equal to 102 percent of the fair value of the loaned securities. The cash collateral received is invested in cash and/or short-term investments that may be sold or repledged or partially used for short-term liquidity purposes based on conservative cash flow forecasts. Securities lent by the Company under these

 

 
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transactions may be sold or repledged by the counterparties. The liability for cash collateral received would be reported in payable for securities lending in the Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus. The Company monitors the fair value of securities loaned and obtains additional collateral as necessary. At the termination of the transactions, the Company and its counterparties are obligated to return the collateral provided and the securities lent, respectively. These transactions are treated as secured financing arrangements.

In addition, the Company is a party to secured financing transactions involving securities sold under agreements to repurchase (repurchase agreements), in which the Company transfers securities in exchange for cash, with an agreement by the Company to repurchase the same or substantially similar securities on agreed upon dates specified in the agreements.

Investment income due and accrued is non-admitted from investment income for bonds and other invested assets when collection of interest is overdue by more than 90 days, or is uncertain, and for mortgage loans when loans are foreclosed, or delinquent in payment for greater than 180 days, or when collection of interest is uncertain.

Net realized capital gains and losses, which are determined by using the specific identification method, are reflected in income net of applicable federal income taxes and transfers to the interest maintenance reserve.

The Company regularly evaluates its investments for other-than-temporary impairment (“OTTI”) in value. The determination that a security has incurred an OTTI in value and the amount of any loss recognition requires the judgment of the Company’s management and a continual review of its investments. For bonds, other than LBaSS, an OTTI shall be considered to have occurred if it is probable that the Company will not be able to collect all amounts due under the contractual terms in effect at the acquisition date of the debt security. If it is determined an OTTI has occurred, the cost basis of bonds are written down to fair value and the amount of the write-down is recognized as a realized capital loss.

For LBaSS, a non-interest related OTTI resulting from a decline in value due to fundamental credit problems of the issuer is recognized when the projected discounted cash flows for a particular security are less than its amortized cost. When a non-interest related OTTI occurs, the LBaSS is written down to the present value of future cash flows expected to be collected. An OTTI is also deemed to have occurred if the Company intends to sell the LBaSS or does not have the intent and ability to retain the LBaSS until recovery. If the decline is interest-related, the LBaSS is written down to fair value.

In periods subsequent to the recognition of an OTTI loss, the Company generally accretes the difference between the new cost basis and the future cash flows expected to be collected, if applicable, as interest income over the remaining life of the security based on the amount and timing of estimated future cash flows.

Non-admitted assets are excluded from admitted assets and the change in the aggregate amount of such assets is reflected as a separate component of unassigned surplus. Non-admitted assets include all assets specifically designated as non-admitted and assets not designated as admitted, such as a certain portion of DTAs, prepaid expenses, electronic data processing (“EDP”) equipment assets, agents’ balances or other receivables over 90 days. Non-admitted assets were $4.6 billion and $4.6 billion at December 31, 2023 and 2022, respectively.

Interest maintenance reserve (“IMR”) is calculated based on methods prescribed by the NAIC and was established to prevent large fluctuations in interest-related investment gains and losses resulting from sales (net of taxes) and interest-related OTTI (net of taxes). IMR applies to all types of fixed maturity investments, including bonds, preferred stocks, MBS, ABS and mortgage loans. An OTTI occurs when the Company, at the reporting date, has the intent to sell an investment or does not have the intent and ability to hold the security before recovery of the cost of the investment. For LBaSS, if the Company recognizes an interest-related OTTI, the non-interest-related OTTI is recorded to the asset valuation reserve, and the interest-related portion to IMR. Such gains and losses are deferred into the IMR and amortized into income using the grouped method over the remaining contractual lives of the securities sold.

Asset valuation reserve (“AVR”) is used to stabilize surplus from fluctuations in the market value of bonds, stocks, mortgage loans, real estate, limited partnerships and other investments. Changes in the AVR are recorded as direct increases or decreases in surplus.

Separate account assets and liabilities generally represent funds for which the contract holder, rather than the Company, bears the investment risk. Separate account contract holders have no claim against the assets of the general account of the Company, except for certain guaranteed products. Separate account assets are generally reported at fair

 

 
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value. In addition, certain products with fixed guarantees and market-value-adjusted (“MVA”) fixed annuity contracts in which the assets are generally carried at amortized cost are required by certain states to be carried in a separate account. The operations of the separate accounts are excluded from the Statutory Statements of Operations and Statutory Statements of Cash Flows of the Company. The Company receives fees for assuming mortality and certain expense risks. Such fees are included in separate account fees in the Statutory Statements of Operations. Reserves for variable annuity contracts are provided in accordance with the Variable Annuity Commissioners’ Annuity Reserve Valuation Method (“VACARVM”) under subsection 21 of the Valuation Manual (“VM-21”). Reserves for variable universal life accounts are provided in accordance with subsection 20 of the Valuation Manual (“VM-20”) for new business issued beginning in 2020, and in accordance with the Commissioners’ Reserve Valuation Method (“CRVM”) for policies issued prior to 2020.

Policy reserves are established according to different methods.

Life, annuity, and health reserves are developed by actuarial methods and are generally determined based on published tables using specified interest rates, mortality or morbidity assumptions, and valuation methods prescribed or permitted by statutes that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed policy cash values or the amounts required by the TDI.

Principle-based reserving (“PBR”) is designed to tailor the reserving process to more closely reflect the risks of specific products, rather than the previous prescribed approach. Reserve requirements for the Company’s life insurance policies issued after January 1, 2020 are contained in VM-20, Requirements for Principle-Based Reserves for Life Products, policies issued prior to 2020 are reserved for using the CRVM. Under VM-20, these reserves are generally more sensitive to changes in actuarial assumptions.

The Company waives the deduction of deferred fractional premiums on the death of the life and annuity policy insured and returns any premium beyond the date of death. The Company reported additional reserves for surrender values in excess of the corresponding policy reserves.

The Company performs annual cash flow testing in accordance with the Actuarial Opinion and Memorandum Regulation to ensure adequacy of the reserves. Additional reserves are established where the results of cash flow testing under various interest rate scenarios indicate the need for such reserves or where the net premiums exceed the gross premiums on any insurance in force. Total cash flow testing reserves were $175 million and $175 million at December 31, 2023 and 2022, respectively.

A majority of the Company’s variable annuity products are issued with a guaranteed minimum death benefit (“GMDB”) which provides that, upon the death of a contractholder, the contractholder’s beneficiary will receive the greater of (1) the contractholder’s account value, or (2) a GMDB that varies by product. Depending on the product, the GMDB may equal the principal invested, adjusted for withdrawals; or the greatest contract value, adjusted for withdrawals, at the specified contract anniversaries; or the principal invested, adjusted for withdrawals, accumulated at the specified rate per annum. These benefits have issue age and other restrictions to reduce mortality risk exposure. The Company bears the risk that death claims following a decline in the financial markets may exceed contract holder account balances, and that the fees collected under the contract are insufficient to cover the costs of the benefit to be provided. Death benefits on GMDB policies generally reduce on a proportional basis or on a dollar-for-dollar basis when a partial withdrawal occurs.

Reserves for GMDB benefits are included in the VACARVM reserve. PBR is designed to tailor the reserving process to more closely reflect the risks of specific products, rather than the factor-based approach typically employed historically. Variable Annuity (“VA”) reserving requirements are contained in VM-21, Reserves for Variable Requirements for Principle-Based Annuities.

Life policies underwritten as substandard are charged extra premiums. Reserves are computed for a substandard policy by adding the reserve for an otherwise identical non-substandard policy plus a factor times the extra premium charge for the year. The factor varies by duration, type of plan, and underwriting. In addition, an extra mortality reserve is reported for ordinary life insurance policies classified as group conversions. Substandard structured settlement annuity reserves are determined by making a constant addition to the mortality rate of the applicable valuation mortality table so that the life expectancy on the adjusted table is equal to the life expectancy determined by the Company’s underwriters at issue.

Tabular interest, tabular less actual reserves released, and tabular cost have been determined by formula, except for universal life insurance and deferred annuity reserves, which include fund accumulations for which tabular interest has

 

 
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been determined from basic data. For the determination of tabular interest on funds not involving life contingencies, the actual credited interest is used.

Liabilities for deposit-type contracts, which include supplementary contracts without life contingencies and annuities certain, are based on the discounting of future payments at an annual statutory effective rate. Tabular interest on other funds not involving life contingencies is based on the interest rate at which the liability accrues.

Policy and contract claims represent the ultimate net cost of all reported and unreported claims incurred during the year. Reserves for unpaid claims are estimated using individual case-basis valuations and statistical analyses. Those estimates are subject to the effects of trends in claim severity and frequency. The estimates are continually reviewed and adjusted as necessary, as experience develops or new information becomes known; such adjustments are included in current operations.

Reserves for future policy benefits to be paid on life and accident and health policies, incurred in the statement period, but not yet reported, were established using historical data from claim lag experience. The data is aggregated from product specific studies performed on the Company’s business.

Premiums and annuity considerations and related expenses are recognized over different periods. Life premiums are recognized as income over the premium paying periods of the related policies. Annuity considerations are recognized as revenue when received. Premiums for deposit-type products are credited directly to the respective reserves and are not recorded in the Statutory Statement of Operations. Health premiums are earned ratably over the terms of the related insurance and reinsurance contracts or policies. Acquisition costs such as commissions and other expenses related to the production of new business are charged to the Statutory Statements of Operations as incurred.

Reinsurance premiums and benefits paid or provided are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts.

Annuity and deposit-type contract surrender benefits are reported on a cash basis, and include annuity benefits, payments under supplementary contracts with life contingencies, surrenders and withdrawals. Withdrawals from deposit-type contracts directly reduce the liability for deposit-type contracts and are not reported in the Statutory Statements of Operations.

General insurance expenses include allocated expenses pursuant to cost allocation agreements. The Company purchases administrative, accounting, marketing and data processing services from AIG, Corebridge and affiliates and is charged based on estimated levels of usage, transactions or time incurred in providing the respective services. The allocation of costs for investment management services purchased from affiliates is based on the level of assets under management.

Federal income tax expense (benefit) is recognized and computed on a separate company basis pursuant to tax sharing agreements, because the Company is included in the consolidated federal income tax returns of its parent company filing group. For the period prior to the Corebridge initial public offering (the “IPO”) on September 19, 2022, the Company joined in the filing of a consolidated federal income tax return with AIG. For the period following the IPO, the Company will join with AGC Life, Variable Annuity Life Insurance Company (“VALIC”), United States Life Insurance Company in the City of New York (“USL”), and Corebridge Insurance Company of Bermuda, Ltd. (formerly AIG Life of Bermuda, Ltd.) (“Corebridge Bermuda”), in filing a consolidated life company federal income tax return. To the extent that benefits for net operating losses, foreign tax credits, corporate alternative minimum tax (“CAMT”) credits or net capital losses are utilized on a consolidated basis, the Company would recognize tax benefits based upon the amount of those deductions and credits utilized in the consolidated federal income tax return. The federal income tax expense or benefit reflected in the Statutory Statements of Operations represents income taxes provided on income that is currently taxable, but excludes tax on the net realized capital gains or losses.

Income taxes on capital gains or losses reflect differences in the recognition of capital gains or losses on a statutory accounting basis versus a tax accounting basis. The most significant of such differences involve impairments of investments, which are recorded as realized losses in the Statutory Statements of Operations but are not recognized for tax purposes, and the deferral of net capital gains and losses into the IMR for statutory income but not for taxable income. Capital gains and losses on certain related-party transactions are recognized for statutory financial reporting purposes but are deferred for income tax reporting purposes until the security is sold to an outside party.

 

 
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A deferred tax asset (“DTA”) or deferred tax liability (“DTL”) is included in the Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus, which reflects the expected future tax consequences of temporary differences between the statement values of assets and liabilities for statutory financial reporting purposes and the amounts used for income tax reporting purposes. The change in the net DTA or DTL is reflected in a separate component of unassigned surplus. Net DTAs are limited in their admissibility.

The CAMT is disregarded when evaluating the need for a valuation allowance for the Company’s non-CAMT DTAs.

Accounting Changes

The Company had no accounting changes during 2023 or 2022.

Substantive changes were made to SSAP 26R, Bonds, SSAP 21R, Other Admitted Assets, and SSAP 43R, Loan-Backed and Structured Securities, effective January 1, 2025. The changes provide a new principle-based bond definition to be used for determining which investments are eligible for reporting on Schedule D as a bond. The changes focus on ensuring appropriate consideration of whether an investment qualifies as an issuer credit obligation or asset-backed security prior to reporting as a bond.

Correction of Errors

SAP requires that corrections of errors related to prior periods be reported as adjustments to unassigned surplus to the extent that they are not material to prior periods.

In 2023, two out-of-period errors were identified and corrected, the largest of which was related to an understatement of reserves for variable annuities due to model implementations in 2022. The total of these corrections decreased unassigned surplus by $8 million.

In 2022, three out-of-period errors were identified and corrected, which increased unassigned surplus by $72 million. This decreased claims reserved as a result of overstated claim reserves from 2019-2021.

In 2021, five out-of-period errors were identified and corrected, which decreased unassigned surplus by $161 million. The most significant of these was a tax correction related to 2013 - 2018.

The Company’s management does not believe these corrections to be material to the Company’s results of operations, financial position, or cash flow for the Company’s previously filed annual statement.

Differences in Statutory Accounting and U.S. GAAP Accounting

The accompanying statutory financial statements have been prepared in accordance with accounting practices prescribed or permitted by the TDI. These accounting practices vary in certain respects from U.S. GAAP. The primary differences between NAIC SAP and U.S. GAAP are as follows.

The objectives of U.S. GAAP differ from the objectives of SAP. U.S. GAAP is designed to measure the entity as a going concern and to produce general purpose financial statements to meet the varying needs of the different users of financial statements. SAP is designed to address the accounting requirements of regulators, who are the primary users of statutory-basis financial statements and whose primary objective is to measure solvency. As a result, U.S. GAAP stresses measurement of earnings and financial condition of a business from period to period, while SAP stresses measurement of the ability of the insurer to pay claims in the future.

Investments. Under SAP, investments in bonds and redeemable preferred stocks are generally reported at amortized cost. However, if bonds are designated category “6” and redeemable preferred stocks are designated categories “4 – 6” by the NAIC, these investments are reported at the lesser of amortized cost or fair value with a credit or charge to unrealized investment gains or losses. For U.S. GAAP, such fixed-maturity investments are designated at purchase as held-to-maturity, trading, or available-for-sale. Held-to-maturity fixed-maturity investments are reported at amortized cost, and the remaining fixed-maturity investments are reported at fair value, with unrealized capital gains and losses reported in operations for those designated as trading and as a component of other comprehensive income for those designated as available-for-sale.

Under SAP, all single- and multi-class MBS or other ABS (e.g., Collateralized Mortgage Obligations (“CMO”) are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium with respect to such securities using either the retrospective or prospective method. For LBaSS, if it is

 

 
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determined that a decline in fair value is other than temporary, the cost basis of the security is written down to the discounted estimated future cash flows. Bonds, other than LBaSS, that are other-than-temporarily impaired are written down to fair value. For U.S. GAAP purposes, all securities, purchased or retained, that represent beneficial interests in securitized assets (e.g., CMO, MBS and ABS securities), other than high credit quality securities, would be adjusted using the prospective method when there is a change in estimated future cash flows. If high-credit quality securities must be adjusted, the retrospective method would be used. For all bonds, if it is determined that a decline in fair value is other-than-temporary, the cost basis of the security would be written down to the discounted estimated future cash flows, while the non-credit portion of the impairment would be recorded as an unrealized loss in other comprehensive income.

Under SAP, when it is probable that the insurer will be unable to collect all amounts due according to the contractual terms of the mortgage agreement, allowances are established for temporarily-impaired mortgage loans based on the difference between the unpaid loan balance and the estimated fair value of the underlying real estate, less estimated costs to obtain and sell. The initial allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned surplus rather than as a component of earnings as would be required under U.S. GAAP. If the impairment is other-than-temporary, a direct write down is recognized as a realized loss, and a new cost basis is established. Under U.S. GAAP, an allowance for credit losses is based on the expectation of lifetime credit losses.

Under SAP, joint ventures, partnerships and limited liability companies in which the insurer has a minor ownership interest (i.e., less than 10 percent) or lacks control are generally recorded based on the underlying audited U.S. GAAP basis equity of the investee. Under U.S. GAAP, joint ventures, partnerships and limited liability companies in which the insurer has a significant ownership interest or is deemed to have control are accounted for under the equity method. Where that is not the case, such investments are carried at fair value with changes in fair value recognized in earnings.

Real Estate. Under SAP, investments in real estate are reported net of related obligations; under U.S. GAAP, investments in real estate are reported on a gross basis. Under SAP, real estate owned and occupied by the insurer is included in investments; under U.S. GAAP, real estate owned and occupied by the insurer is reported as an operating asset, and operating income and expenses include rent for the insurer’s occupancy of those properties.

Derivatives. Under SAP, derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge are accounted for at fair value with the changes in fair value recorded as unrealized capital gains or losses. Under U.S. GAAP, such derivative instruments are accounted for at fair value with the changes in fair value recorded as realized capital gains or losses. Under U.S. GAAP, fair value measurement for free standing derivatives incorporate either counterparty’s credit risk for derivative assets or the insurer’s credit risk for derivative liabilities by determining the explicit cost to protect against credit exposure. This credit exposure evaluation takes into consideration observable credit default swap rates. Under SAP, non-performance risk (own credit-risk) is not reflected in the fair value calculations for derivative liabilities. Under U.S. GAAP, index life insurance features in indexed universal life contracts and certain guaranteed features of variable annuities are bifurcated and accounted for separately as embedded policy derivatives and market risk benefits, respectively. Under SAP, embedded derivatives and market risk benefits are not bifurcated or accounted for separately from the host contract.

Interest Maintenance Reserve. Under SAP, the insurer is required to maintain an IMR. IMR is calculated based on methods prescribed by the NAIC and was established to prevent large fluctuations in interest-related capital gains and losses realized through sales or OTTI. IMR applies to all types of fixed maturity investments, including bonds, preferred stocks, MBS, ABS and mortgage loans. After-tax capital gains or losses realized upon the sale or impairment of such investments resulting from changes in the overall level of interest rates are excluded from current period net income and transferred to the IMR. The transferred after-tax net realized capital gains or losses are then amortized into income over the remaining period to maturity of the divested asset. Realized capital gains and losses are reported net of tax and transfers to the IMR, after net gain from operations. Any negative IMR balance is treated as a non-admitted asset, unless certain criteria are met. This reserve is not required under U.S. GAAP and pre-tax realized capital gains and losses are reported as a component of total revenues, with related taxes included in taxes from operations.

Asset Valuation Reserve. Under SAP, the insurer is required to maintain an AVR, which is computed in accordance with a prescribed formula and represents a provision for possible fluctuations in the value of bonds, equity securities, mortgage loans, real estate, and other invested assets. The level of AVR is based on both the type of investment and its

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

credit rating. Under SAP, AVR is included in total adjusted capital for RBC analysis purposes. Changes to AVR are charged or credited directly to unassigned surplus. This reserve is not required under U.S. GAAP.

Subsidiaries. Under SAP, investments in insurance subsidiaries are recorded based upon the underlying audited statutory equity of a subsidiary with all undistributed earnings or losses shown as an unrealized capital gain or loss in unassigned surplus. Dividends received by the parent company from its subsidiaries are recorded through net investment income. Under U.S. GAAP, subsidiaries’ financial statements are combined with the parent company’s financial statements through consolidation. All intercompany balances and transactions are eliminated under U.S. GAAP. Dividends received by the parent company from its subsidiaries reduce the parent company’s investment in the subsidiaries.

Policy Acquisition Costs and Sales Inducements. Under SAP, policy acquisition costs are expensed when incurred. Under U.S. GAAP, acquisition costs that are incremental and directly related to the successful acquisition of new and renewal of existing insurance contracts are deferred as deferred policy acquisition costs (“DAC”). DAC is amortized on a constant level basis (i.e., approximating straight line amortization with adjustments for expected terminations) over the expected term of the related contracts using assumptions consistent with those used in estimating the related liability for future policy benefits, or any other related balances. Under SAP, sales inducements are expensed when incurred. Under U.S. GAAP, certain sales inducements on interest-sensitive life insurance contracts and deferred annuities are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC.

Deferred Premiums. Under SAP, when deferred premiums exist, statutory deferred premiums are held as a statutory asset, while under U.S. GAAP, deferred premiums are held as a contra-liability in the future policy benefits liability.

Non-admitted Assets. Certain assets designated as “non-admitted,” principally any agents’ balances or unsecured loans or advances to agents, certain DTAs, furniture, equipment and computer software, receivables over 90 days and prepaid expenses, as well as other assets not specifically identified as admitted assets within the NAIC SAP, are excluded from the Statutory Statements of Admitted Assets, Liabilities, Capital and Surplus and are charged directly to unassigned surplus. Under U.S. GAAP, such assets are included in the balance sheet.

Universal Life and Annuity Policies. Under SAP, revenues for universal life and annuity policies containing mortality or morbidity risk considerations consist of the entire premium received, and benefits incurred consist of the total of death benefits paid and the change in policy reserves. Payments received on contracts that do not incorporate any mortality or morbidity risk considerations (deposit-type contracts) are credited directly to an appropriate liability for deposit-type contract account without recognizing premium income. Interest credited to deposit-type contracts is recorded as an expense in the Statutory Statements of Operations as incurred. Payments that represent a return of policyholder balances are recorded as a direct reduction of the liability for deposit-type contracts, rather than a benefit expense. Under U.S. GAAP, premiums received in excess of policy charges are not recognized as premium revenue, and benefits represent the excess of benefits paid over the policy account value and interest credited to the account values.

Benefit Reserves. Under SAP, loading is the difference between the gross and valuation net premium. Valuation net premium is calculated using valuation assumptions which are different for statutory and U.S. GAAP. Statutory valuation assumptions are set by the insurer within limits as defined by statutory law. U.S. GAAP valuation assumptions are set by the insurer based on management’s estimates and judgment.

Policyholder funds not involving life contingencies use different valuation assumptions for SAP and U.S. GAAP. Under SAP, prescribed rates of interest related to payout annuities are used in the discounting of expected benefit payments, while under U.S. GAAP, the insurer’s best estimates of interest rates are used.

Under SAP, the CRVM is used for the majority of individual insurance reserves. Under U.S. GAAP, individual insurance policyholder liabilities for traditional forms of insurance are generally established using the net premium ratio (“NPR”) method. For interest-sensitive policies, a liability for policyholder account balances is established under U.S. GAAP based on the contract value that has accrued to the benefit of the policyholder. Policy assumptions used in the estimation of policyholder liabilities are generally prescribed under SAP. Under U.S. GAAP, policy assumptions are based upon best estimates.

Under SAP, the CARVM is used for the majority of individual deferred annuity reserves, while under U.S. GAAP, individual deferred annuity policyholder liabilities are generally equal to the contract value that has accrued to the benefit of the policyholder, together with liabilities for certain contractual guarantees, if applicable. Under SAP, reserves

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

for fixed rate deposit-type contracts are based upon their accumulated values, discounted at an annual statutory effective rate, while under U.S. GAAP, reserves for deposit-type contracts are recorded at their accumulated values.

Under GAAP, indexed interest credits and guarantees in excess of contract account values are bifurcated from the host contract as embedded derivatives and market risk benefits, respectively, and reported at fair value. Under SAP, embedded derivatives and market risk benefits are not bifurcated and accounted for separately, but rather are included in the benefit reserve valuation for the host contract.

Reinsurance. Under SAP, policy and contract liabilities ceded to reinsurers are reported as reductions of the related reserves rather than as assets as required under U.S. GAAP. Under SAP, a liability for reinsurance balances has been provided for unsecured policy reserves, unearned premiums, and unpaid losses ceded to reinsurers not licensed to assume such business. Changes to these amounts are credited or charged directly to unassigned surplus. Under U.S. GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings. Under SAP, the criteria used to demonstrate risk transfer varies from U.S. GAAP, which may result in transactions that are accounted for as reinsurance for SAP and deposit accounting for U.S. GAAP. Under SAP, the reserve credit permitted for unauthorized reinsurers is less than or equal to the amount of letter of credit or funds held in trust by the reinsurer. Under U.S. GAAP, assumed and ceded reinsurance is reflected on a gross basis in the balance sheet, and certain commissions allowed by reinsurers on ceded business are deferred and amortized generally on a basis consistent with DAC.

Policyholder Dividend Liabilities. Under SAP, policyholder dividends are recognized when declared. Under U.S. GAAP, policyholder dividends are recognized over the term of the related policies.

Separate Accounts. Under SAP, separate account surplus created through the use of the CRVM, the VACARVM or other reserving methods is reported by the general account as an unsettled transfer from the separate account. The net change on such transfers is included as a part of the net gain from operations in the general account. This is not required under U.S. GAAP.

Separate accounts include certain non-unitized assets which primarily represent MVA fixed options of variable annuity contracts and certain pension risk transfer annuities issued in various states. Under SAP, these contracts are accounted for in the separate account financial statements, while under U.S. GAAP, they are accounted for in the general account.

Deferred Income Taxes. Under SAP, statutory DTAs that are more likely than not to be realized are limited to: 1) the amount of federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse by the end of the subsequent calendar year, plus 2) the lesser of the remaining gross DTA expected to be realized within a maximum three years of the reporting date or a maximum 15 percent of the capital and surplus excluding any net DTA, EDP equipment and operating software and any net positive goodwill, plus 3) the amount of the remaining gross DTA that can be offset against existing gross DTLs. The remaining DTAs are non-admitted. Deferred taxes do not include amounts for state taxes. Under U.S. GAAP, state taxes are included in the computation of deferred taxes, all DTAs are recorded and a valuation allowance is established if it is more likely than not that some portion of the DTA will not be realized. Under SAP, income tax expense is based upon taxes currently payable. Changes in deferred taxes are reported in surplus and subject to admissibility limits. Under U.S. GAAP, changes in deferred taxes are recorded in income tax expense.

Offsetting of Assets and Liabilities. Under SAP, offsetting of assets and liabilities is not permitted when there are master netting agreements unless four requirements for valid right of offset are met. The requirements include 1) each of the two parties owes the other determinable amounts, 2) the reporting party has the right to set off the amount owed with the amount owed by the other party, 3) the reporting party intends to set off, and 4) the right of setoff is enforceable. The prohibition against offsetting extends to derivatives and collateral posted against derivative positions, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions, when the reporting entity does not have the intent to set off. Under U.S. GAAP, these amounts under master netting arrangements may generally be offset and presented on a net basis pursuant to an accounting election, even when the reporting entity does not have the intent to set off.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

3. INVESTMENTS

 

Bonds and Equity Securities

The following table presents the statement value, gross unrealized gain, gross unrealized loss and the estimated fair value of bonds and equity securities by major security type:

 

 (in millions)    Statement
Value		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair Value  

 December 31, 2023

           

 Bonds:

           

U.S. government obligations

    $ 1,321      $ 5      $ (214)     $ 1,112  

All other governments

      2,041        21        (249)       1,813  

States, territories and possessions

      239        2        (23)       218  

Political subdivisions of states, territories and possessions

      210        4        (12)       202  

Special revenue

      5,392        39        (532)       4,899  

Industrial and miscellaneous

      98,249        1,546        (9,929)       89,866  

Hybrid securities

      377        10        (15)       372  

Bank loans

      3,937        16        (96)       3,857  

Parent, subsidiaries and affiliates

      366        —        —       366  

Total bonds

      112,132        1,643        (11,070)       102,705  

Preferred stock

      80        3        —       83  

Common stock*

      266        —        —       266  

Total equity securities

      346        3        —       349  

Total

    $  112,478      $  1,646      $  (11,070 )    $  103,054  

 December 31, 2022

           

 Bonds:

           

U.S. government obligations

    $ 1,314      $ 4      $ (198)     $ 1,120  

All other government

      2,629        20        (385)       2,264  

States, territories and possessions

      268        2        (30)       240  

Political subdivisions of states, territories and possessions

      332        8        (21)       319  

Special revenue

      6,159        35        (710)       5,484  

Industrial and miscellaneous

      93,378        1,001        (13,217)       81,162  

Hybrid securities

      435        10        (28)       417  

Bank loans

      3,580        3        (115)       3,468  

Parent, subsidiaries and affiliates

      360        —        —       360  

Total bonds

      108,455        1,083        (14,704)       94,834  

Preferred stock

      93        —        (4)       89  

Common stock*

      927        —        —       927  

 Total equity securities

      1,020        —        (4)       1,016  

Total

    $ 109,475      $ 1,083      $ (14,708)     $ 95,850  

* Common stock includes $73 million and $753 million of investments in affiliates at December 31, 2023 and 2022, respectively.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Bonds and Equity Securities in Loss Positions

The following table summarizes the fair value and gross unrealized losses (where fair value is less than amortized cost) on bonds and equity securities, including amounts on NAIC 6 and 6* bonds, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position:

 

        Less than 12 Months       12 Months or More     Total  
 (in millions)
    Fair
Value		      Gross  
Unrealized  
Losses  		     Fair
Value		      Gross  
Unrealized  
Losses  		     Fair
Value		      Gross 
Unrealized 
Losses 		  

 December 31, 2023

                

 Bonds:

                

U.S. government obligations

    $ 88      $ (6 )    $ 889      $ (208 )    $ 977      $ (214 ) 

All other government

      158        (20 )      1,344        (227 )      1,502        (247 ) 

U.S. States, territories and possessions

      32        (1 )      139        (22 )      171        (23 ) 

Political subdivisions of states, territories and possessions

      28        (2 )      82        (11 )      110        (13 ) 

Special revenue

      1,001        (81 )      2,977        (450 )      3,978        (531 ) 

Industrial and miscellaneous

      11,361        (1,080 )      53,785        (8,851 )      65,146        (9,931 ) 

Hybrid securities

      40        (1 )      199        (14 )      239        (15 ) 

Bank loans

      813        (40 )      1,695        (62 )      2,508        (102 ) 

Parents, subsidiaries & affliates

      —        —       8        —       8        —  

Total bonds

      13,521        (1,231 )      61,118        (9,845 )      74,639        (11,076 ) 

Preferred stock

      —        —       —        —       —        —  

Common stock

      —        —       —        —       —        —  

Total equity securities

      —        —       —        —       —        —  

Total

    $ 13,521      $ (1,231 )    $ 61,118      $ (9,845 )    $ 74,639      $ (11,076 ) 

December 31, 2022

                                                    

 Bonds:

                

U.S. government obligations

    $ 990      $ (197 )    $ 1      $ —     $ 991      $ (197 ) 

All other government

      1,953        (389 )      —        —       1,953        (389 ) 

U.S States, territories and possessions

      180        (30 )      —        —       180        (30 ) 

Political subdivisions of states, territories and possessions

      177        (21 )      —        —       177        (21 ) 

Special revenue

      4,565        (694 )      78        (16 )      4,643        (710 ) 

Industrial and miscellaneous

      57,098        (10,308 )      12,196        (2,927 )      69,294        (13,235 ) 

Hybrid securities

      268        (30 )      —        —       268        (30 ) 

Bank loans

      2,184        (71 )      897        (47 )      3,081        (118 ) 

Total

    $  67,415      $  (11,740 )    $  13,172      $  (2,990 )    $  80,587      $  (14,730 ) 

Preferred stock

      84        (6 )      —        —       84        (6 ) 

Common stock

      2        —       —        —       2        —  

Total equity securities

      86        (6 )      —        —       86        (6 ) 

Total

    $ 67,501      $ (11,746 )    $ 13,172      $ (2,990 )    $ 80,673      $ (14,736 ) 

As of December 31, 2023 and 2022, the number of bonds and equity securities in an unrealized loss position was 7,290 and 8,092, respectively. Bonds comprised 7,288 of the total, of which 5,725 were in a continuous loss position greater than 12 months at December 31, 2023. Bonds comprised 8,010 of the total, of which 1,189 were in a continuous loss position greater than 12 months at December 31, 2022.

The Company did not recognize the unrealized losses in earnings on these fixed maturity securities at December 31, 2023 and 2022, respectively, because the Company neither intends to sell the securities nor does the Company believe that it is more likely than not that the Company will be required to sell these securities before recovery of their amortized cost basis. For fixed maturity securities with significant declines, the Company performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, expected defaults on underlying collateral, review of relevant industry analyst reports and forecasts and other available market data.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Contractual Maturities of Bonds

The following table presents the statement value and fair value of bonds by contractual maturity:

 

 (in millions)   

Statement

Value

      Fair Value  

December 31, 2023

      

Due in one year or less

    $ 1,433      $ 1,423  

Due after one year through five years

      12,717        12,396  

Due after five years through ten years

      15,311        14,262  

Due after ten years

      44,241        37,416  

LBaSS

      38,552        37,330  
     

Total

    $         112,254      $         102,827  

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.

Bonds in or near default as to payment of principal or interest had a statement value of $25 million and $124 million at December 31, 2023 and 2022, respectively, which is the fair value. At December 31, 2023 and 2022, the Company had no income excluded from due and accrued for bonds.

December 31, 2023 , the Company’s bond portfolio included bonds totaling $6.4 billion not rated investment grade by the NAIC designations (categories 3-6). These bonds accounted for 3 percent of the Company’s total assets and 4 percent of invested assets. These below investment grade securities, excluding structured securities, span across 14 industries. At December 31, 2022, the Company’s bond portfolio included bonds totaling $7.0 billion not rated investment grade by the NAIC designations (categories 3-6). These bonds accounted for 3 percent of the Company’s total assets and 5 percent of invested assets. These below investment grade securities, excluding structured securities, span across 14 industries.

December 31, 2023 and 2022 The following table presents the industries that constitute more than 10% of the below investment grade securities:

 

   
     December 31,  
      2023      2022  

Consumer cyclical

          17.3%             21.3%  

Consumer non-cyclical

      16.0          16.1    

Capital Goods

      8.0          8.3    

LBaSS

The Company determines fair value of LBaSS based on the amount at which a security could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The majority of the Company’s ABS, RMBS, CMBS, and collateralized debt obligations (“CDO”) are priced by approved independent third-party valuation service providers and broker dealer quotations. Small portions of the LBaSS that are not traded in active markets are priced by market standard internal valuation methodologies, which include discounted cash flow methodologies and matrix pricing. The estimated fair values are based on available market information and management’s judgments.

The following table presents the statement value and fair value of LBaSS:

 

       
     December 31, 2023          December 31, 2022  
 (in millions)   

Statement

Value

      Fair Value           Statement
Value		      Fair Value  
           

 Loan-backed and structured securities

    $       38,552      $      37,330          $     30,699      $     28,853  

Prepayment assumptions for single class, multi-class mortgage-backed and ABS were obtained from independent third-party valuation service providers or internal estimates. These assumptions are consistent with the current interest rate and economic environment.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

At December 31, 2023 and 2022, the Company had exposure to a variety of LBaSS. These securities could have significant concentrations of credit risk by country, geographical region, property type, servicer or other characteristics. As part of the quarterly surveillance process, the Company takes into account many of these characteristics in making the OTTI assessment.

At December 31, 2023 and 2022, the Company did not have any LBaSS with a recognized OTTI due to the intent to sell or an inability or lack of intent to retain the security for a period of time sufficient to recover the amortized cost basis.

During 2023, 2022 and 2021, the Company recognized total OTTI of $36 million, $114 million and $13 million, respectively, on LBaSS that were still held by the Company. In addition, at December 31, 2023 and 2022, the Company held loan-backed impaired securities (fair value is less than cost or amortized cost) for which an OTTI had not been recognized in earnings as a realized loss. Such impairments include securities with a recognized OTTI for non-interest (credit) related declines that were recognized in earnings, but for which an associated interest-related decline has not been recognized in earnings as a realized capital loss.

The following table summarizes the fair value and aggregate amount of unrealized losses on LBaSS and length of time that individual securities have been in a continuous unrealized loss position:

 

      Less than 12 Months           12 Months or More           Total  
 (in millions)   

Fair

Value

     

Gross

Unrealized

Losses

    

 

   

Fair

Value

     

Gross

Unrealized

Losses

          

Fair

Value

     

Gross

Unrealized

Losses

  

 December 31, 2023

                      

  LBaSS

    $ 7,184      $ (454 )       $    16,089      $      (1,699 )       $    23,273      $    (2,153 ) 

 December 31, 2022

                      

  LBaSS

    $    16,448      $    (1,565 )         $ 6,349      $ (999 )         $ 22,797      $ (2,564 ) 

In its OTTI assessment, the Company considers all information relevant to the collectability of the security, including past history, current conditions and reasonable forecasts when developing an estimate of future cash flows. Relevant analyst reports and forecasts for the asset class also receive appropriate consideration. The Company also considers how credit enhancements affect the expected performance of the security. In addition, the Company generally considers its cash and working capital requirements and expected cash flows in relation to its business plans and how such forecasts affect the intent and ability to hold such securities to recovery of their amortized cost.

The Company does not have any LBaSS for which it is not practicable to estimate fair values.

The following table presents the rollforward of non-interest related OTTI for LBaSS:

 

   
     December 31,  
(in millions)    2023      2022  

Balance, beginning of year

    $         1,256      $ 1,263  

Increases due to:

      

Credit impairment on new securities subject to impairment losses

      26        42  

Additional credit impairment on previously impaired investments

      10        71  

Reduction due to:

      

Credit impaired securities fully disposed for which there was no prior intent or requirement to sell

      80        120  
     

Balance, end of year

    $ 1,212      $       1,256  

See Note 4 for a list with each LBaSS at a CUSIP level where the present value of cash flows expected to be collected is less than the amortized cost basis during the current year and a list of the Company’s structured notes holding at December 31, 2023.

Mortgage Loans

Mortgage loans had outstanding principal balances of $30.4 billion and $25.8 billion at December 31, 2023 and 2022, respectively. Contractual interest rates range from 0.00 percent to 35.00 percent. The mortgage loans at December 31, 2023 had maturity dates ranging from 2023 to 2069.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The Company’s mortgage loans are collateralized by a variety of commercial real estate property types located throughout the U.S. and Canada. The commercial mortgage loans are non-recourse to the borrower.

The following tables present the geographic and property-type distribution of the Company’s mortgage loan portfolio:

 

      December 31,
      2023    2022 

 Geographic distribution:

     

Mid-Atlantic

      26.2 %      28.0 % 

Foreign

      20.0       22.5  

Pacific

      15.1       14.7  

South Atlantic

      15.4       12.1  

West South Central

      6.4       6.5  

East North Central

      5.1       5.8  

New England

      5.3       4.5  

Mountain

      4.4       3.9  

East South Central

      1.5       1.5  

West North Central

      0.6       0.5  
     

 Total

          100.0 %          100.0 % 

Property type distribution:

     

Multi-family

      32.6 %      35.9 % 

Office

      19.5       23.8  

Retail

      8.5       8.3  

Industrial

      14.9       16.2  

Hotel/Motel

      4.1       4.8  

Other

      20.4       11.0  
     

 Total

      100.0 %      100.0 % 

At December 31, 2023, there were 331 mortgage loans with outstanding balances of $20 million or more, which loans collectively, aggregated approximately 75 percent of this portfolio.

The following table presents the minimum and maximum lending rates for new mortgage loans during 2023 and 2022:

 

      Years Ended December 31,  
     2023     2022  
(in millions)    Maximum     Minimum     Maximum     Minimum  

Office

      12.00 %       3.00  %      12.60  %      3.00  % 

Multi-family

      9.84       3.01       15.03       2.98  

Retail

      8.84       5.06       —       —  

Industrial

      10.34       4.08       9.34       2.68  

Hotel/Motel

      9.69       6.95       8.68       4.04  

Other

      26.01       (0.16 )      37.35       —  

The Company did not reduce any interest rates during 2023 and 2022.

The maximum percentage of any one loan to the value of security at the time of the loan, exclusive of insured or guaranteed or purchase money mortgage was 144 percent and 90 percent, in 2023 and 2022, respectively.

At December 31, 2023, the Company held $560 million in impaired mortgage loans with a related allowance for credit losses. There were no impaired mortgage loans without a related allowance. At December 31, 2022, the Company held $800 million in impaired mortgages with $492 million of related allowances for credit losses and $308 million in impaired loans without a related allowance. The Company’s average recorded investment in impaired loans was $604 million and $669 million, at December 31, 2023 and 2022, respectively. The Company recognized interest income of $15 million, $22 million and $14 million, in 2023, 2022 and 2021, respectively.

 

 
26

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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The following table presents a rollforward of the changes in the allowance for losses on mortgage loans receivable:

 

      December 31,  
 (in millions)    2023      2022      2021  

Balance, beginning of year

    $ 294      $ 245      $ 274  

Additions (reductions) charged to unrealized capital loss

      148        58        (28)  

Direct write-downs charged against allowance

      (87)        (9)        (1)  

Balance, end of year

    $       355      $       294      $       245  

During 2023, the Company derecognized $71 million of mortgage loans and recognized $71 million of real estate collateral as a result of foreclosure.

The mortgage loan portfolio has been originated by the Company under strict underwriting standards. Commercial mortgage loans on properties such as offices, hotels and shopping centers generally represent a higher level of risk than do mortgage loans secured by multi-family residences. This greater risk is due to several factors, including the larger size of such loans and the more immediate effects of general economic conditions on these commercial property types. However, due to the Company’s strict underwriting standards, the Company believes that it has prudently managed the risk attributable to its mortgage loan portfolio while maintaining attractive yields.

The following table presents the age analysis of mortgage loans:

 

     December 31,  
 (in millions)   2023      2022  

 Current

   $ 29,547      $      24,981  

 30 - 59 days past due

     68        21  

 60 - 89 days past due

     13        3  

 90 - 179 days past due

     24        125  

 Greater than 180 days past due

     —        1  

 Total

   $      29,652      $ 25,131  

At December 31, 2023 and 2022, the Company had mortgage loans outstanding under participant or co-lender agreements of $22.7 billion and $21.2 billion, respectively.

The Company had $307 million and $466 million in restructured loans at December 31, 2023 and 2022, respectively.

Aggregate mortgage loans having the following loan-to-value ratios as determined from the most current appraisal as of December 31, 2023:

 

       
(in millions)    Residential     Commercial     Agricultural  
             
Loan-to-Value    Amount     

Percentage

of Total

Admitted

Assets

     Amount     

Percentage

of Total

Admitted

Assets

     Amount     

Percentage

of Total

Admitted

Assets

  

a. above 95%

    $ 1        —  %    $ 609        0.40  %    $     —        — %  

b. 91% to 95%

      1        —       246        0.20       —        —    

c. 81% to 90%

      264        0.20       1,133        0.70       —        —    

d. 71% to 80%

      1,645        1.00       2,751        1.70       —        —    

e. below 70%

       3,689        2.30        19,314        12.00       —        —    

Troubled Debt Restructuring

The Company held no restructured debt for which impairment was recognized for both December 31, 2023 and 2022. At December 31, 2023 , the Company had $4 million outstanding commitments to debtors that hold loans with restructured terms. At December 31, 2022, the Company had $4 million of outstanding commitments to debtors that held loans with restructured terms.

 

 
27

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Real Estate

The following table presents the components of the Company’s investment in real estate:

 

   
     December 31,  
 (in millions)    2023      2022  

 Properties occupied by the Company

    $ —      $ 6  

 Properties held for production of income

      73        3  

 Properties held for sale

      2        —  
     

 Total

    $        75      $         9  

The Company recognized no gains or losses in 2023, 2022 and 2021. The Company recognized $3 million in impairment write-downs for its investment in real estate in 2023. The Company did not recognize any impairment write-downs for its investment in real estate during 2022 and 2021.

Other Invested Assets

The following table presents the components of the Company’s other invested assets:

 

   
     December 31,  
 (in millions)    2023      2022  

 Investments in limited liability companies

    $ 644      $ 972  

 Investments in limited partnerships

      3,921        4,188  

 Other unaffiliated investments

      1,892        2,717  

 Receivable for securities

      100        73  

 Non-admitted assets

      (1)        (10)  
     

 Total

    $     6,556      $     7,940  

The Company utilizes the look-through approach in valuing its investments in affiliated joint ventures or partnerships that have the characteristics of real estate investments. These affiliated real estate investments had an aggregate value of $955 million at December 31, 2023. All liabilities, commitments, contingencies, guarantees, or obligations of these holding company entities, which are required to be recorded as liabilities, commitments, contingencies, guarantees or obligations under applicable accounting guidance, are reflected in the Company’s determination of the carrying value of the investment in each of the respective holding company entities, if applicable.

The Company recorded impairment write-downs in joint ventures was $4 million, $13 million and $15 million during 2023, 2022 and 2021, respectively.

 

 
28

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Net Investment Income

The following table presents the components of net investment income:

 

   
     Years ended December 31,  

 (in millions)

      2023        2022        2021  

Bonds

    $ 5,259      $ 4,608      $ 4,802  

Preferred stocks

      2        10        4  

Common stocks

      11        2        7  

Cash and short-term investments

      57        44        15  

Mortgage loans

      1,437        1,038        946  

Real estate*

      4        4        4  

Contract loans

      78        68        65  

Derivatives

      (283)        994        167  

Investment income from affiliates

      148        399        1,419  

Other invested assets

      246        320        271  

Gross investment income

      6,959        7,487        7,700  

Investment expenses

      (385)        (315)        (197)  

Net investment income

    $       6,574      $       7,172      $       7,503  

* Includes amounts for the occupancy of Company-owned property of $2 million in 2023, 2022 and 2021.

Net Realized and Unrealized Capital Gains (Losses)

The following table presents the components of Net realized capital gains (losses):

 

      Years ended December 31,  

 (in millions)

      2023        2022        2021  

Bonds

    $ (460)      $ (551)      $ 446  

Preferred stocks

      (12)        —        14  

Common stocks

      8        (2)        16  

Cash and short-term investments

      36        (79)        (1)  

Mortgage loans

      (162)        (107)        18  

Real estate

      (3)        —        —  

Derivatives

      (329)        (1,233)        (659)  

Other invested assets

      113        80        199  

Other

      —        —        (49)  

Realized capital (losses) gains

      (809)        (1,892)        (16)  

Federal income tax benefit (expense)

      170        397        3  

Net gains transferred to IMR

      276        305        (392)  

Net realized capital (losses) gains

    $       (363)      $       (1,190)      $       (405)  

During 2023, 2022 and 2021, the Company recognized $87 million, $167 million and $42 million, respectively, of impairment write-downs in accordance with the impairment policy described in Note 2.

The following table presents the proceeds from sales of bonds and equities and the related gross realized capital gains and gross realized capital losses:

 

      Years ended December 31,  

 (in millions)

      2023        2022        2021  
       

Proceeds

    $ 3,401      $ 9,787      $       11,495  

Gross realized capital gains

    $ 64      $ 112      $ 823  

Gross realized capital losses

    $ (456)        (472)        (405)  
       

Net realized capital (losses) gains

    $       (392)      $       (360)      $ 418  

 

 
29

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The following table presents the net change in unrealized capital gains (losses) of investments (including foreign exchange capital gains (losses):

 

   
    Years ended December 31,  
 (in millions)   2023      2022      2021  

Bonds

   $ 280      $ (369)      $ (171)  

Preferred and common stocks

     53        (59)        (311)  

Mortgage loans

     273        (523)        (129)  

Derivatives

     148        (497)        139  

Other invested assets

     (68)        (280)        502  

Other

     (10)        19        25  

Federal income tax benefit (expense)

     (126)        310              (116)  
       

Net change in unrealized (losses) gains of investments

   $       550      $       (1,399)      $ (61)  

5GI Securities Measured at Aggregate Book Adjusted Carrying Value and Fair Value

The following table presents 5GI Securities measured at aggregate book adjusted carrying value (BACV) and aggregate fair value at December 31:

 

           
Investment   

Number of 5GI

Securities

             Aggregate BACV
(in millions)		            

Aggregate Fair Value

(in millions)

  
     2023       2022             2023       2022             2023       2022   

Bonds - AC

      5        11        $ 45      $ 15        $ 45      $ 13  

LB&SS - AC

      3        14          3        11          1        11  

Preferred Stock - AC

      —        —          —        —          —        —  

Preferred Stock - FV

      3        4          1        7          1        7  

Total

      11        29              $  49      $  33              $  47      $ 31  

AC - Amortized Cost

FV - Fair Value

 

 
30

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

4.LOAN-BACKED AND STRUCTURED SECURITY IMPAIRMENTS AND STRUCTURED NOTES HOLDINGS

 

LBaSS

The following table presents the LBaSS held by the Company at December 31, 2023 for which it had recognized non-interest related OTTI subsequent to the adoption of SSAP 43R:

 

(in thousands)                                               
  CUSIP   

Amortized

Cost Before

Current Period
OTTI

     

Present Value

of Projected

Cash Flows

    

Recognized

OTTI

     

Amortized

Cost After

OTTI

     

Fair Value at

Time of OTTI

     

Date of

Financial

Statement

Where

Reported

  

25702@AB2

    $ 899      $ 1     $ 898      $ 1      $ 1        3/31/2023  

25150WAA2

      6,490        —       6,490        —        —        3/31/2023  

16163HAE1

      504        503       —        503        526        3/31/2023  

05952GAA9

    $ 2,344      $ 2,293     $ 51      $ 2,293      $ 2,278        3/31/2023  

22541QQJ4

      4        —       4        —        —        3/31/2023  

12668BKA0

      1,929        1,904       25        1,904        1,844        3/31/2023  

32051GPW9

    $ 1,749      $ 1,747     $ 3      $ 1,747      $ 1,712        3/31/2023  

Quarterly Total

    $ 13,919      $ 6,448     $ 7,471      $ 6,448      $ 6,361           

75114GAC3

      22        —       22        —        —        6/30/2023  

23312RAE5

      27,786        13,657       14,129        13,657        11,312        6/30/2023  

17029RAA9

      1,278        —       1,278        —        —        6/30/2023  

Quarterly Total

    $ 29,086      $ 13,657     $ 15,429      $ 13,657      $ 11,312           

007036UQ7

      2,543        2,528       16        2,528        2,437        9/30/2023  

94984NAA0

      1,474        1,464       11        1,464        1,565        9/30/2023  

02660KAA0

      24,925        24,825       100        24,825        28,597        9/30/2023  

93934FGB2

      8,242        8,164       78        8,164        9,131        9/30/2023  

362480AD7

      4,575        4,550       25        4,550        5,646        9/30/2023  

05952EAA4

      420        417       3        417        430        9/30/2023  

17025TBE0

      3,595        3,591       4        3,591        3,263        9/30/2023  

232434AE0

      68,655        68,509       146        68,509        71,719        9/30/2023  

655378AH0

      21,296        21,149       147        21,149        24,021        9/30/2023  

45669BAA0

      60,942        60,915       27        60,915        65,476        9/30/2023  

45660LEF2

      14,309        14,261       48        14,261        14,441        9/30/2023  

61915YAD3

      14,284        14,188       95        14,188        15,795        9/30/2023  

126694PP7

      3,041        3,029       13        3,029        2,558        9/30/2023  

45669FAC7

      3,944        3,940       4        3,940        4,052        9/30/2023  

761118HU5

      2,196        2,173       23        2,173        2,632        9/30/2023  

74923WAB4

      5,131        5,130       1        5,130        5,068        9/30/2023  

Quarterly Total

    $       239,572      $ 238,833     $ 741      $       238,833      $       256,831           

67088CAA5

      2,670        204               2,466        204        204        12/31/2023  

058928AN2

      1,083        724       360        724        713        12/31/2023  

61748HJY8

      6,601        6,581       20        6,581        5,868        12/31/2023  

059522BG6

      2,626        2,623       3        2,623        2,491        12/31/2023  

466286AA9

      13,771        13,748       23        13,748        15,245        12/31/2023  

45661XAD4

      11,277        11,244       33        11,244        9,860        12/31/2023  

02147HAF9

      5,644        5,603       40        5,603        5,197        12/31/2023  

92990GAC7

      2,086        2,083       4        2,083        1,886        12/31/2023  

17029PAA3

      24,063        14,513       9,550        14,513        11,747        12/31/2023  

Quarterly Total

    $ 69,821      $ 57,323     $ 12,499      $ 57,323      $ 53,211           
        Year-end Total     $ 36,139           

None of the structured notes held by the Company are defined as a Mortgage-Referenced Security by the IAO.

 

 
31

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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

5. SECURITIES LENDING AND REPURCHASE AGREEMENTS

 

Securities Lending

At December 31, 2023 and 2022, the Company had no bonds loaned pursuant to the securities lending program.

The following table presents the aggregate fair value of cash collateral received related to the securities lending program and the terms of the contractually obligated collateral positions:

 

      December 31,  
 (in millions)    2023      2022  

30 days or less

    $ —      $ —  

31 to 60 days

      —        —  

61 to 90 days

      —        —  

Subtotal

      —        —  

Securities collateral received

      —        —  

Total collateral received

    $          —      $          —  

The following table presents the aggregate amortized cost and fair value of cash collateral reinvested related to the securities lending program by maturity date:

 

      December 31, 2023             December 31, 2022  
 (in millions)   

Amortized

Cost

      Fair Value            

Amortized

Cost

      Fair Value  

Open positions

    $ —      $ —              $ —      $ —  

Subtotal

      —        —          —        —  

Securities collateral received

      —        —          —        —  

Total collateral reinvested

    $        —      $        —              $         —      $         —  

Repurchase Agreements

At December 31, 2023 and 2022, bonds with a fair value of approximately $1,675 million and $1,668 million, respectively, were subject to repurchase agreements to secure amounts borrowed by the Company.

The following table presents the aggregate fair value of cash collateral received related to the repurchase agreement program and the terms of the contractually obligated collateral positions:

 

      December 31,  
 (in millions)    2023      2022  

Open positions

    $ —      $ —  

30 days or less

      1,623        1,316  

31 to 60 days

      —        145  

61 to 90 days

      —        —  

Greater than 90 days

      —        264  

Subtotal

      1,623        1,725  

Securities collateral received

      —        —  

Total collateral received

    $       1,623      $       1,725  

 

 
32

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The following table presents the original (flow) and residual maturity for bi-lateral repurchase agreement transactions for the year ended December 31, 2023:

 

(in millions)  

 

FIRST
QUARTER

 

          

 

SECOND
QUARTER

 

          

 

THIRD
QUARTER

 

          

 

FOURTH
QUARTER

 

  
a.   Maximum Amount                    

1. Open - No Maturity

   $ 21             $ 21             $ 29       $ 28  

2. Overnight

     658         465         —         344  

3. 2 Days to 1 Week

     1,989         560         —         1,004  

4. > 1 Week to 1 Month

           1,801                 274         —         1,597  

5. > 1 Month to 3 Months

     73         —         —         —  

6. > 3 Months to 1 Year

     —         —         —         —  

7. > 1 Year

     —         —         —         —  

b.   Ending Balance

              

1. Open - No Maturity

   $ 21       $ 21       $         29       $ 28  

2. Overnight

     —         75         —         —  

3. 2 Days to 1 Week

     179         —         —               1,004  

4. > 1 Week to 1 Month

     1,751         —         —         586  

5. > 1 Month to 3 Months

     —         —         —         —  

6. > 3 Months to 1 Year

     —         —         —         —  

7. > 1 Year

     —         —         —         —  

The following table presents the Company’s liability to return collateral for the year ended December 31, 2023:

 

(in millions)  

 

FIRST

QUARTER

 

          

 

SECOND

QUARTER

 

          

 

THIRD

QUARTER

 

          

 

FOURTH

QUARTER

 

  

a. Maximum Amount

              

1. Cash (Collateral - All)

   $ 4,542       $       1,320       $ 29       $ 2,973  

2. Securities Collateral (FV)

     —               —               —               —  

b. Ending Balance

              

1. Cash (Collateral - All)

   $        1,951       $ 96       $         29       $       1,618  

2. Securities Collateral (FV)

     —         —         —         —  

The Company requires a minimum of 95 percent of the fair value of securities sold under the repurchase agreements to be maintained as collateral. Cash collateral received is invested in corporate bonds and the offsetting collateral liability for repurchase agreements is included in other liabilities.

The following table presents the aggregate amortized cost and fair value of cash collateral reinvested related to the repurchase agreement program by maturity date:

 

      December 31, 2023      December 31, 2022  
 (in millions)    Amortized
Cost		      Fair Value      Amortized
Cost		      Fair Value  

Open positions

    $ 2,036      $ 1,675      $ 1,933      $ 1,668  

Greater than three years

      —        —        —        —  

Subtotal

      2,036        1,675        1,933        1,668  

Securities collateral received

      —        —        —        —  

Total collateral reinvested

    $       2,036      $       1,675      $      1,933      $      1,668  

 

 
33

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The following table presents the fair value of securities under bi-lateral repurchase agreement transactions for the year ended December 31, 2023:

 

       
(in millions)   

FIRST

QUARTER

     

 

     

SECOND

QUARTER

             THIRD
QUARTER		             FOURTH
QUARTER		  

a.   Maximum Amount

                     

1. BACV

    $ —         $ —         $          —         $ —  

2. Nonadmitted - Subset of BACV

      —           —           —           —  

3. Fair Value

      —           —           —           —  

b.   Ending Balance

                     

1. BACV

    $         2,436         $        120         $ 39         $         2,036  

2. Nonadmitted - Subset of BACV

      —           —           —           —  

3. Fair Value

      2,021           100           26           1,675  

 

 
34

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The following table presents the fair value of securities under bi-lateral repurchase agreement transactions for the year ended December 31, 2023:

 

(in millions)   

1

None

    

 

   

2

NAIC 1

         

3

NAIC 2

         

4

NAIC 3

  

Ending Balance

                  

a. Bonds - BACV

    $         —        $        1,094        $        942        $       —  

b. Bonds - FV

      —          850          825          —  

c. LB & SS - BACV

      —          —          —          —  

d. LB & SS - FV

      —          —          —          —  

e. Preferred Stock - BACV

      —          —          —          —  

f. Preferred Stock - FV

      —          —          —          —  

g. Common Stock

      —          —          —          —  

h. Mortgage Loans - BACV

      —          —          —          —  

i. Mortgage Loans - FV

      —          —          —          —  

j. Real Estate - BACV

      —          —          —          —  

k. Real Estate - FV

      —          —          —          —  

l. Derivatives - BACV

      —          —          —          —  

m. Derivatives - FV

      —          —          —          —  

n. Other Invested Assets - BACV

      —          —          —          —  

o. Other Invested Assets - FV

      —          —          —          —  

p. Total Assets - BACV

      —          1,094          942          —  

q. Total Assets - FV

      —          850          825          —  
                 
(in millions)   

5

NAIC 4

    

 

   

6

NAIC 5

    

 

   

7

NAIC 6

    

 

   

8

Non-Admitted

  

Ending Balance

                  

a. Bonds - BACV

    $ —        $ —        $ —        $ —  

b. Bonds - FV

      —          —          —          —  

c. LB & SS - BACV

      —          —          —          —  

d. LB & SS - FV

      —          —          —          —  

e. Preferred Stock - BACV

      —          —          —          —  

f. Preferred Stock - FV

      —          —          —          —  

g. Common Stock

      —          —          —          —  

h. Mortgage Loans - BACV

      —          —          —          —  

i. Mortgage Loans - FV

      —          —          —          —  

j. Real Estate - BACV

      —          —          —          —  

k. Real Estate - FV

      —          —          —          —  

l. Derivatives - BACV

      —          —          —          —  

m. Derivatives - FV

      —          —          —          —  

n. Other Invested Assets - BACV

      —          —          —          —  

o. Other Invested Assets - FV

      —          —          —          —  

p. Total Assets - BACV

      —          —          —          —  

q. Total Assets - FV

      —            —            —            —  

 

 
35

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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

6. RESTRICTED ASSETS

 

The Company has restricted assets as detailed below. Assets under restriction are general account assets and are not part of the Separate Accounts.

The following table presents the carrying value of the Company’s restricted assets:

 

   
     December 31,  
(in millions)    2023      2022  

On deposit with states

    $ 47      $ 47  

FHLB stock and collateral pledged

      6,938        5,043  

Subject to repurchase agreements

      1,618        1,933  

Collateral for derivatives

      1,412        1,541  

Guaranteed interest contracts

      66        68  

Other restricted assets

      985        464  

Total

    $    11,066      $    9,096  

7. SUBPRIME MORTGAGE RISK EXPOSURE

 

The following features are commonly recognized characteristics of subprime mortgage loans:

 

•  

An interest rate above prime to borrowers who do not qualify for prime rate loans;

 

•  

Borrowers with low credit ratings (FICO scores);

 

•  

Interest-only or negative amortizing loans;

 

•  

Unconventionally high initial loan-to-value ratios;

 

•  

Low initial payments based on a fixed introductory rate that expires after a short initial period, then adjusts to a variable index rate plus a margin for the remaining term of the loan;

 

•  

Borrowers with less than conventional documentation of their income and/or net assets;

 

•  

Very high or no limits on how much the payment amount or the interest rate may increase at reset periods, potentially causing a substantial increase in the monthly payment amount; and/or

 

•  

Substantial prepayment penalties and/or prepayment penalties that extend beyond the initial interest rate adjustment period.

Non-agency RMBS can belong to one of several different categories depending on the characteristics of the borrower, the property and the loan used to finance the property. Categorization is a function of FICO score, the type of loan, loan-to-value ratio, and property type and loan documentation.

Generally, subprime loans are made to borrowers with low FICO scores, low levels of equity and reduced income/asset documentation. Due to these characteristics, subprime borrowers pay a substantially higher interest rate than prime borrowers. In addition, they often utilize mortgage products that reduce their monthly payments in the near-term. These include adjustable-rate mortgages with low initial rates or interest-only loans. Borrowers in products like this often experience significant “payment shock” when the teaser payment resets upwards after the initial fixed period.

The primary classification mechanism the Company uses for subprime loans is FICO score. Specifically, a pool with an average FICO at origination less than 650 is considered to be subprime. However, the Company may subjectively adjust this classification based on an assessment of the other parameters mentioned above.

To monitor subprime securities, the Company uses a model with vintage-specific assumptions for delinquency roll rates, loss severities and the timing of losses. As and when needed, these vintage-based assumptions are supplemented with deal-specific information including, but not limited to, geographic distribution, realized loss severities, trigger status and scenario analysis.

 

 
36

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The Company has no direct exposure through investments in subprime mortgage loans. The Company’s exposure is through other investments, primarily in RMBS, as described above.

The following table presents information regarding the Company’s investments with subprime exposures:

 

 (in millions)    Actual Cost     Book
Adjusted
Statement
Value		     Fair Value     OTTI
Recognized
to Date		  

 December 31, 2023

         

 In general account:

         

 RMBS

    $ 810     $ 791     $ 903     $ (14 ) 

 CDOs

      101       117       113       —  

 Total subprime exposure

    $ 911     $ 908     $ 1,016     $ (14 ) 

 December 31, 2022

         

 In general account:

         

 RMBS

    $ 868     $ 842     $ 963     $ (14 ) 

 CDOs

      74       88       83       —  

 Total subprime exposure

    $ 942     $ 930     $ 1,046     $ (14 ) 

The Company has no underwriting exposure to subprime mortgage risk through mortgage guaranty or financial guaranty insurance coverage.

8. DERIVATIVES

 

The Company has taken positions in certain derivative financial instruments to mitigate or hedge the impact of changes in interest rates, foreign currencies, equity markets, swap spreads, volatility, correlations and yield curve risk on cash flows from investment income, policyholder liabilities and equity. Financial instruments used by the Company for such purposes include interest rate swaps, interest rate swaptions, cross-currency swaps, futures and futures options on equity indices, and futures and futures options on government securities. The Company does not engage in the use of derivative instruments for speculative purposes and is neither a dealer nor trader in derivative instruments.

All derivative instruments are recognized in the financial statements. SSAP 108 allows special accounting treatment for limited derivatives hedging variable annuity guarantee benefits subject to fluctuation as a result of interest rate sensitivity. The special accounting provision permits reporting entities to utilize a form of macro-hedging in which a portfolio of variable annuity policies are jointly designated as the host contracts containing the hedge item, in a fair value hedge, pursuant to a Clearly Defined Hedging Strategy defined within VM-21.

At inception and on an ongoing basis, the hedging relationship must be highly effective in achieving offsetting changes in fair value attributed to the hedged risk during the period that the hedge is designated. The term “highly effective” describes a fair value hedge relationship where the change in fair value of the derivative instrument is within 80 to 125 percent of the opposite change in fair value of the hedged item attributed to the hedged risk.

SSAP 108 requires the Company use the same fair value definition that is used for its economic hedge target, which enables the Company to leverage the existing modeling and attribution platform currently in place for hedging analysis. In addition, the Company uses the VM-21 interest rate sensitivities measured at the beginning of the quarter to estimate the reserve movement attributed to interest rate movement, which leverages the existing modeling and attribution platform in place for Statutory analysis. These approaches and the overall use of the special accounting provision of SSAP 108 in 2022 and 2023 have received the approval of the TDI.

The Company uses a portfolio of interest rates swaps and swaptions to hedge the interest rate risk associated with a portfolio of guaranteed minimum withdrawal benefits (“GMWB”) riders on its variable annuities. This hedging relationship was highly effective and complied with the Clearly Defined Hedging Strategy of VM-21.

Under SSAP 108 all derivatives are reported at fair value. Fair value change in hedge instruments attributable to the hedged risk that offset the change in reserve attributable to the hedged risk is recognized as realized gain/loss in the current period there were no excludable components.

 

 
37

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

At December 31, 2023 and 2022, fair value of the derivatives was a liability of $455 million and $1.2 billion, full contract fair value was a liability of $1 billion and $1.7 billion and hedge target fair value was a liability of $963 million and $841 million. For the period ending December 31, 2023 and 2022, fair value change in hedge instruments attributable to the hedged risk that offset the change in reserve attributable to the hedged risk was a realized loss of $193 million and a realized gain $1 billion, respectively. Fair value change in hedge instruments attributable to the hedged risk that do not offset the change in reserve attributable to the hedged risk are recognized as deferred assets/liabilities in the current period and amortized over projected VA guarantees’ Macaulay Duration within the Standard Projection, but not more than 10 years. At December 31, 2023 and 2022, the fair value change in hedge instruments attributable to the hedged risk that do not offset the change in reserve attributable to the hedged risk was a deferred assets of $1.1 billion and deferred assets $739 million, respectively. For the periods ending December 31, 2023 and 2022, amortization was a realized loss of $93 million and a realized loss of $32 million, respectively. Fair value change in hedge instruments not attributable to the hedged risk are recognized as unrealized gain/loss, if any. All fair value changes in hedge instruments were attributable to the hedged risk for the period. Based on the currently liability profile, deferred asset/ liabilities are being amortized over 10 years.

Starting in 2022, the Company designated, under SSAP 86, certain foreign exchange derivatives as effective hedges of certain invested assets. During 2023, the Company also designated certain interest rate swaps as effective cash flow hedges of floating-rate investment assets. Derivatives not designated for hedge accounting are accounted for at fair value with the changes in fair value recorded in surplus as unrealized gains or losses, net of deferred taxes. The value of the Company’s exchange traded futures contracts relates to the one-day lag in the net cash settlement of these contracts.

The Company recognized a net unrealized capital gain of $167 million in 2023, an unrealized capital gain of $478 million in 2022 and an unrealized capital gain of $139 million in 2021, related to derivatives that did not qualify for hedge accounting.

Net cash collateral received for derivative transactions increased in the year 2023, as a result of increases in fair values of derivatives covered by an International Swaps and Derivative Association Master Agreement (“ISDA Master Agreement”) and Credit Support Annex provisions. At December 31, 2023, the Company held collateral for SSAP 86 and SSAP 108 derivatives of $1,861 million, which is invested in cash, cash equivalents and/or short-term investments.

Refer to Note 3 for disclosures related to net realized capital gains (losses).

Swaps, Options, and Futures

Interest rate or cross-currency swap agreements are agreements to exchange with a counterparty, at specified intervals, payments of differing character (for example, variable-rate payments exchanged for fixed-rate payments) or in different currencies, based on an underlying principal balance, notional amount. Generally no cash is exchanged at the outset of the contract and no principal payments are made by either party. A single net payment is usually made by one counterparty at each contractual payment due date, and this net payment is included in the Statutory Statement of Operations.

Options are contracts that grant the purchaser, for a premium payment, the right, but not the obligation, either to purchase or sell a financial instrument at a specified price within a specified period of time. The Company purchases call options on the S&P 500 Index to offset the risk of certain guarantees of specific equity-index annuity and universal life policy values. The Company also purchases put options on the S&P 500 Index to offset volatility risk arising from minimum guarantees embedded in variable annuities. The options are carried at fair value, with changes in fair value recognized in unrealized investment gains and losses.

Financial futures are contracts between two parties that commit one party to purchase and the other to sell a particular commodity or financial instrument at a price determined on the final settlement day of the contract. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. The Company uses futures contracts on Euro dollar deposits, U.S. Treasury Notes, U.S. Treasury Bonds, the S&P 500 Index, MidCap 400, Russell 2000, MSCI EAFE, foreign government debt securities, and foreign denominated equity indices to offset the risk of certain guarantees on annuity policy values.

 

 
38

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Interest Rate Risk

Interest rate derivatives are used to manage interest rate risk associated with certain guarantees of variable annuities and equity indexed annuities and certain bonds. The Company’s interest rate hedging derivative instruments include (1) interest rate swaps and swaptions; (2) listed futures on government securities; and (3) listed futures options on government securities; and (4) unlisted swaps and swaptions in U.S. Dollar Secured Overnight Financing Rate.

Currency Risk

Foreign exchange contracts used by the Company include cross-currency swaps, which are used to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company holds.

Equity Risk

Equity derivatives are used to mitigate financial risk embedded in certain insurance liabilities.

Credit Risk

The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial instruments, but it does not expect any counterparties to fail to meet their obligations given their high credit ratings. For over-the-counter (“OTC”) derivatives, the Company’s net credit exposure is determined based on master netting agreements, which take into consideration all derivative positions with the counterparty, as well as collateral posted by the counterparty at the balance sheet date. The Company is exposed to credit risk when the net position with a particular counterparty results in an asset that exceeds collateral pledged by that counterparty.

For OTC contracts, the Company generally uses an ISDA Master Agreement and Credit Support Annexes with bilateral collateral provisions to reduce counterparty credit exposures. An ISDA Master Agreement is an agreement between two counterparties, which may cover multiple derivative transactions and such 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, in a single currency, in the event of a default affecting any one derivative transaction or a termination event affecting all or a specified group of the transactions. The Company minimizes the risk that counterparties might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and may require additional collateral to be posted upon the occurrence of certain events or circumstances. In the unlikely event of a failure to perform by any of the counterparties to these derivative transactions, there would not be a material effect on the Company’s admitted assets, liabilities or capital and surplus.

The Company has also entered into exchange-traded options and futures contracts. Under exchange-traded futures contracts, the Company agrees to purchase a specified number of contracts with other parties and to post or receive variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The parties with whom the Company enters into exchange-traded futures are regulated futures commission merchants who are members of a trading exchange. The credit risk of exchange-traded futures is partially mitigated because variation margin is settled daily in cash. Exchange-traded option contracts are not subject to daily margin settlements and amounts due to the Company based upon favorable movements in the underlying securities or indices are owed upon exercise.

 

 
39

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The following table presents the notional amounts, statement values and fair values of the Company’s derivative instruments:

 

      December 31, 2023      December 31, 2022  
 (in millions)   

Contract or

Notional

Amount

     

Statement

Value

      Fair Value     

Contract or

Notional

Amount

     

Statement

Value

      Fair Value  

 Assets:

                  

Interest rate contracts

    $ 25,958      $      1,808      $      1,808      $ 18,022      $     1,700      $      1,700  

Foreign exchange contracts

      6,641        679        679        5,190        822        826  

Equity contracts

      104,770        5,372        5,371        58,131        1,505        1,504  

Other contracts

      14        —        —        49        1        1  

 Derivative assets, gross

      137,383        7,859        7,858        81,392        4,028        4,031  

Counter party netting*

      —        (5,975)        (5,975)        —        (3,562)        (3,562)  

 Derivative assets, net

    $ 137,383      $ 1,884      $ 1,883      $ 81,392      $ 466      $ 469  

 Liabilities:

                  

Interest rate contracts

    $ 31,308      $ 2,070      $ 2,063      $ 22,448      $ 2,653      $ 2,653  

Foreign exchange contracts

      9,001        453        467        7,484        523        521  

Equity contracts

      43,063        4,403        4,403        39,808        1,193        1,193  

Other contracts

      47        2        2        —        —        —  

 Derivative liabilities, gross

      83,419        6,928        6,935        69,740        4,369        4,367  

Counter party netting*

      —        (5,975)        (5,975)        —        (3,562)        (3,562)  

 Derivative liabilities, net

    $ 83,419      $ 953      $ 960      $ 69,740      $ 807      $ 805  

* Represents netting of derivative exposures covered by a qualifying master netting agreement.

The Company has a right of offset of its derivatives asset and liability positions with various counterparties.

The following table presents the effect of the right of offsets:

 

      December 31, 2023      December 31, 2022  
 (in millions)    Assets      Liabilities      Assets      Liabilities  

 Gross amount recognized

    $ 7,859      $     6,927      $ 4,028      $      4,369  

 Amount offset

      (5,975)        (5,975)        (3,562)        (3,562)  

 Net amount presented in the Statement of Admitted

            

Assets, Liabilities, and Capital and Surplus

    $      1,884      $ 952      $      466      $ 807  

 

 
40

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

9. INFORMATION ABOUT FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK

 

The following table presents the Company’s derivative financial instruments with concentrations of credit risk:

 

 

  
     December 31, 2023          December 31, 2022  
  

 

 

       

 

 

  
 (in millions)   

Contract or

Notional
Amount

     

Final 

Maturity 

Date 

  

 

   

Contract or

Notional

Amount

     

Final Maturity 

Date 

 

  

 Derivative assets:

              

Interest rate contracts

    $       25,958               2056         $       18,022              2069   

Foreign exchange contracts

      6,641        2061          5,190        2061   

Equity contracts

      104,770        2028          58,131        2028   

Credit contracts

      —        —          —        —   

Other contracts

      14        2053          49        2042   

 Derivative liabilities:

              

Interest rate contracts

      31,308        2071          22,448        2071   

Foreign exchange contracts

      9,001        2063          7,484        2060   

Equity contracts

      43,063        2025          39,808        2024   

Other contracts

      47        2042          —        —   

 

  

The credit exposure to the Company’s derivative contracts is limited to the fair value of such contracts that are favorable to the Company at the reporting date.

The credit exposure to the Company’s derivative contracts aggregated $829.4 million and $848.9 million at December 31, 2023 and 2022, respectively.

10. FAIR VALUE INSTRUMENTS

 

Fair Value Measurements

The Company carries certain financial instruments at fair value. The Company defines the fair value of a financial instrument as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company is responsible for the determination of the value of the investments carried at fair value and the supporting methodologies and assumptions.

The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions

Fair Value Hierarchy

Assets and liabilities recorded at fair value 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 the Company has the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. The Company does 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.

 

 
42

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

•  

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, the Company must make certain assumptions as to 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 those 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.

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value.

Bonds: Fair value is based principally on value from independent third-party valuation service providers, broker quotes and other independent information.

Preferred stocks: Fair value of unaffiliated preferred stocks is based principally on value from independent third-party service providers, broker quotes and other independent information.

Cash, cash equivalents and short term investments: Carrying amount approximate fair value because of the relatively short period of time between origination and expected realization and their limited exposure to credit risk.

Mortgage loans: Fair values are primarily determined by discounting future cash flows to the present at current market rates, using expected prepayment rates.

Contract loans: Carrying amounts, which approximate fair value, are generally equal to unpaid principal amount as of each reporting date. No consideration is given to credit risk because contract loans are effectively collateralized by the cash surrender value of the policies.

Securities lending reinvested collateral assets: Securities lending assets are generally invested in short-term investments and thus carrying amounts approximate fair values because of the relatively short period of time between origination and expected realizations.

Separate account assets: Variable annuity and variable universal life assets are carried at the market value of the underlying securities. Certain separate account assets related to market value adjustment fixed annuity contracts are carried at book value. Fair value is based principally on the value from independent third-party valuation service providers, broker quotes and other independent information.

Policy reserves and contractual liabilities: Fair value for investment contracts (those without significant mortality risk) not accounted for at fair value were estimated for disclosure purposes using discounted cash flow calculations based upon interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued. When no similar contracts are being offered, the discount rate is the appropriate swap rates (if available) or current risk-free interest rates consistent with the currency in which cash flows are denominated.

Payable for securities lending: Cash collateral received from the securities lending program is invested in short-term investments and the offsetting liability is included in payable for securities lending. The carrying amount of this liability approximates fair value because of the relatively short period between origination of the liability and expected settlement.

Receivables/payables for securities: Such amounts represent transactions of a short-term nature for which the statement value is considered a reasonable estimate of fair value.

 

 
42

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Fair Value Information about Financial Instruments Not Measured at Fair Value

The following table presents the aggregate fair values of the Company’s financial instruments not measured at fair value compared to their statement values:

 

 (in millions)   

Aggregate

Fair Value

     

Admitted

Assets or

Liabilities

      Level 1      Level 2      Level 3  

 December 31, 2023

               

 Assets:

               

Bonds

    $   102,685      $   112,112      $     22      $   84,726      $   17,937  

Preferred stocks

      79        76        —        79        —  

Common stocks

      196        196        —        196        —  

Cash, cash equivalents and short-term investments

      900        900        778        122        —  

Mortgage loans

      27,861        29,652        —        —        27,861  

Contract loans

      1,157        1,157        —        —        1,157  

Derivatives

      (46)        (39)           (46)     

Receivables for securities

      100        100        —        100        —  

Separate account assets

      19,068        21,379        —        19,068        —  

 Liabilities:

               

Policy reserves and contractual liabilities

      13,330        13,439        —        79        13,251  

Derivatives

      —        —        —        —        —  

Payable for securities

      182        182        —        182        —  

 December 31, 2022

               

 Assets:

               

Bonds

    $ 94,784      $ 108,404      $ —      $ 80,029      $ 14,755  

Preferred stocks

      78        82        —        78        —  

Common stocks

      163        163        —        163        —  

Cash, cash equivalents and short-term investments

      951        951        564        387        —  

Mortgage loans

      23,082        25,131        —        —        23,082  

Contract loans

      1,138        1,138        —        —        1,138  

Derivatives

      5        2           5     

Receivables for securities

      73        73        —        73        —  

Separate account assets

      12,087        14,525        —        12,087        —  

 Liabilities:

               

Policy reserves and contractual liabilities

      11,734        11,635        —        106        11,628  

Derivatives

      20        22           20     

Payable for securities

      369        369        —        369        —  

 

 
43

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Valuation Methodologies of Financial Instruments Measured at Fair Value

Bonds

Bonds with NAIC 6 or 6* designations and redeemable preferred stocks with NAIC 4, 5 or 6 designations are carried at the lower of amortized cost or fair value. Perpetual preferred stocks are carried at fair value, not to exceed any currently effective call rate. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Whenever available, the Company obtains quoted prices in active markets for identical assets at the balance sheet date to measure bonds at fair value. Market price data generally is obtained from exchange or dealer markets.

The Company estimates the fair value of securities not traded in active markets, by referring to traded securities with similar attributes, using dealer quotations, a matrix pricing methodology, discounted cash flow analyses or internal valuation models. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, prepayment rates and other relevant factors. For bonds that are not traded in active markets or that are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments generally are based on available market evidence. In the absence of such evidence, management’s best estimate is used.

Fair values for bonds and preferred stocks based on observable market prices for identical or similar instruments implicitly include the incorporation of counterparty credit risk. Fair values for bonds and preferred stocks based on internal models incorporate counterparty credit risk by using discount rates that take into consideration cash issuance spreads for similar instruments or other observable information.

Common Stocks (Unaffiliated)

Whenever available, the Company obtains quoted prices in active markets for identical assets at the balance sheet date to measure equity securities at fair value. Market price data is generally obtained from exchanges or dealer markets.

Freestanding Derivatives

Derivative assets and liabilities can be exchange-traded or traded OTC. The Company generally values exchange-traded derivatives, such as futures and options, using quoted prices in active markets for identical derivatives at the balance sheet date.

OTC derivatives are valued using market transactions and other observable market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in, the instrument as well as the availability of pricing information in the market. The Company generally uses similar models to value similar instruments. Valuation models can require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment.

Certain OTC derivatives trade in less liquid markets with limited pricing information, and the determination of fair value for these derivatives is inherently more difficult. When the Company does not have corroborating market evidence to support significant model inputs and cannot verify the model using market transactions, the transaction price is initially used as the best estimate of fair value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so the model value at inception equals the transaction price. Subsequent to initial recognition, the Company updates valuation inputs when corroborated by evidence such as similar market transactions, independent third-party valuation services and/or broker or dealer quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.

 

 
44

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Separate Account Assets

Separate account assets are comprised primarily of registered and open-ended variable funds that trade daily and are measured at fair value using quoted prices in active markets for identical assets. Certain separate account assets are carried at amortized cost.

 

 
45

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Assets and Liabilities Measured at Fair Value

The following table presents information about assets and liabilities measured at fair value:

 

(in millions)    Level 1      Level 2      Level 3     

Counterparty

Netting*

     Total  

December 31, 2023

              

Assets at fair value:

              

Bonds

              

All Other Government

         —             —  

Industrial and miscellaneous

      —        14        6        —       20  

Bank loans

      —        —        —        —       —  

Total bonds

      —        14        6        —       20  

Preferred stock

              

Industrial and miscellaneous

      4        —        1        —       5  

Total preferred stock

      4        —        1        —       5  

Common stock

              

Industrial and miscellaneous

      —        —        —        —       —  

Mutual funds

      1        —        —        —       1  

Total common stock

      1        —        —        —       1  

Derivative assets:

              

Interest rate contracts

      —        1,401        408        —       1,809  

Foreign exchange contracts

      —        679        —        —       679  

Equity contracts

      6        4,665        700        —       5,371  

Other Contracts

      —        —        —          —  

Counterparty netting

      —        —                 (5,975 )      (5,975 ) 

Total derivative assets

      6        6,745        1,108        (5,975 )      1,884  

Separate account assets

      45,987        1,426        —        —       47,414  

Total assets at fair value

    $   45,998      $   8,185      $   1,115      $     (5,975 )    $   49,324  

Liabilities at fair value:

              

Derivative liabilities:

              

Interest rate contracts

    $ —      $ 2,070      $ —      $ —     $ 2,070  

Foreign exchange contracts

      —        414        —        —       414  

Equity contracts

      2        4,336        65        —       4,403  

Credit contracts

      —        —        —        —       —  

Other contracts

      —        —        2        —       2  

Counterparty netting

      —        —        —        (5,975 )      (5,975 ) 

Total derivative liabilities

      2        6,820        67        (5,975 )      914  

Total liabilities at fair value

    $ 2      $ 6,820      $ 67      $ (5,975 )    $ 914  

December 31, 2022

              

Assets at fair value:

              

Bonds

              

All Other Government

         2           $ 2  

Industrial and miscellaneous

    $ —      $ 46      $ 3      $ —     $ 49  

Total bonds

      —        48        3        —       51  

Preferred stock

              

Industrial and miscellaneous

      4        —        7        —       11  

Total preferred stock

      4        —        7        —       11  

Common stock

              

Industrial and miscellaneous

      7        2        2        —       11  

Mutual funds

      —        —        —        —       —  

Total common stock

      7        2        2        —       11  

Derivative assets:

              

Interest rate contracts

      1        1,411        288        —       1,700  

Foreign exchange contracts

      —        821        —        —       821  

Equity contracts

      9        1,255        240        —       1,504  

Other Contracts

            1          1  

Counterparty netting

      —        —        —        (3,562 )      (3,562 ) 

Total derivative assets

      10        3,487        529        (3,562 )      464  

Separate account assets

      43,653        1,523        —        —       45,176  

Total assets at fair value

    $ 43,674      $ 5,060      $ 541      $ (3,562 )    $ 45,713  

Liabilities at fair value:

              

Derivative liabilities:

              

Interest rate contracts

    $ —      $ 2,653      $ —      $ —     $ 2,653  

Foreign exchange contracts

      —        502        —        —       502  

Equity contracts

      2        1,174        16        —       1,192  

Counterparty netting

      —        —        —        (3,562 )      (3,562 ) 

Total derivative liabilities

      2        4,329        16        (3,562 )      785  

Total liabilities at fair value

    $ 2      $ 4,329      $ 16      $ (3,562 )    $ 785  

* Represents netting of derivative exposures covered by a qualifying master netting agreement.

 

 
46

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Changes in Level 3 Fair Value Measurements

The following tables present changes in Level 3 assets and liabilities measured at fair value and the gains (losses) related to the Level 3 assets and liabilities that remained on the Statutory Statements of Admitted Assets, Liabilities and Capital and Surplus:

 

(in millions)    Bonds    

Preferred

Stocks

    

Common

Stocks

    

Derivative

Assets

    

Total

Assets

    

Derivative

Liabilities

  

Balance, January 1, 2021

    $ 12     $ —     $ —     $ 181     $ 193     $ 55  

Total realized/unrealized capital gains or losses:

             

Included in net (loss) income

      (9 )      14       10       (56 )      (41 )      7  

Included in surplus

      15       —       —       28       43       (49 ) 

Purchases, issuances and settlements

      (43 )      (12 )      (10 )      258       193       9  

Transfers into Level 3

      38       4       —       52       94       —  

Transfers out of Level 3

      (2 )      —       —       (53 )      (55 )      —  

Balance, December 31, 2021

    $ 11     $ 6     $ —     $ 410     $ 427     $ 22  

Total realized/unrealized capital gains or losses:

             

Included in net (loss) income

      13       —       —       (232 )      (219 )      (29 ) 

Included in surplus

      (11 )      (1 )      —       (214 )      (226 )      (22 ) 

Purchases, issuances and settlements

      (44 )      2       1       565       524       45  

Transfers into Level 3

      73       —       1       —       74       —  

Transfers out of Level 3

      (39 )      —       —       —       (39 )      —  

Balance, December 31, 2022

    $ 3     $ 7     $ 2     $ 529     $ 541     $ 16  

Total realized/unrealized capital gains or losses:

             

Included in net (loss) income

      (10 )      (7 )      —       (444 )      (461 )      (29 ) 

Included in surplus

      —       1       —       329       330       30  

Purchases, issuances and settlements

      9       —       (2 )      694       701       50  

Transfers into Level 3

      4       —       —       —       4       —  

Transfers out of Level 3

      —       —       —       —       —       —  

Balance, December 31, 2023

    $      6     $      1     $     —     $      1,108     $     1,115     $       67  

Assets are transferred out of Level 3 when circumstances change such that significant inputs can be corroborated with market observable data or when the asset is no longer carried at fair value. This may be due to a significant increase in market activity for the asset, a specific event, one or more significant inputs becoming observable or when a long-term interest rate significant to a valuation becomes short-term and thus observable. Transfers out of level 3 can also occur due to favorable credit migration resulting in a higher NAIC designation. Securities are generally transferred into Level 3 due to a decrease in market transparency, downward credit migration and an overall increase in price disparity for certain individual security types. The Company’s policy is to recognize transfers in and out at the end of the reporting period, consistent with the date of the determination of fair value.

In both 2023 and 2022, there were no transfers between Level 1 and Level 2 securities.

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 capital gains (losses) on instruments held at December 31, 2023 and 2022 may include changes in fair value that were attributable to both observable and unobservable inputs.

Quantitative Information About Level 3 Fair Value Measurements

The Company had no quantitative information about level 3 fair value measurements to report at December 31, 2023.

Gross Basis Fair Value Measurements

The following table presents the Company’s derivative assets and liabilities measured at fair value, on a gross basis, before counterparty and cash collateral netting:

 

(in millions)    Level 1      Level 2      Level 3      Total  

December 31, 2023

            

Derivative assets at fair value

    $ 6      $ 6,745      $    1,108      $ 7,859  

Derivative liabilities at fair value

      (2)        (6,820)        (67)        (6,889)  

December 31, 2022

            

Derivative assets at fair value

    $       10      $     3,487      $ 529      $    4,026  

Derivative liabilities at fair value

      (2)        (4,329)        (16)        (4,347)  

 

 
47

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

11. AGGREGATE POLICY RESERVES AND DEPOSIT FUND LIABILITIES

 

The following table presents the Company’s reserves by major category:

 

(in millions)

    Years ended December 31,  
   2023     2022  

Life insurance

    $ 41,544     $ 41,157  

Annuities (excluding supplementary contracts with life contingencies)

      95,144       88,847  

Supplementary contracts with life contingencies

      371       480  

Accidental death benefits

      15       15  

Disability - active lives

      29       31  

Disability - disabled lives

      208       210  

Excess of VM-21 reserves over basic reserves

      111       18  

Deficiency reserves

      1,180       1,272  

Other miscellaneous reserve

      1,065       1,154  

Gross life and annuity reserves

      139,667       133,184  

Reinsurance ceded

      (25,967 )      (24,335 ) 

Net life and annuity reserves

      113,700       108,849  

Accident and health reserves

     

Unearned premium reserves

      7       7  

Present value of amounts not yet due on claims

      192       193  

Additional contract reserves

      504       520  

Gross accident and health reserves

      703       720  

Reinsurance ceded

      (6 )      (9 ) 

Net accident and health reserves

      697       711  

Aggregate policy reserves

    $ 114,397       109,560  

The following table presents the withdrawal characteristics of annuity actuarial reserves and deposit-type contract funds and other liabilities without life contingencies:

A. Individual Annuities:

 

            December 31, 2023  
(in millions)   

General

account

     

Separate

account with

guarantees

     

Separate

account non-

guaranteed

      Total      % of
Total		  

(1) Subject to discretionary withdrawal :

               

a. With market value adjusted

    $ 44,316      $ 3,563      $ —      $ 47,879        38.34 % 

b. At book value less current surrender charge of 5% or more

      10,554        —        —        10,554        8.45 % 

c. At fair value

      —        26        29,877        29,903        23.95 % 

d. Total with market adjustment or at fair value

      54,870        3,589        29,877        88,336        70.74 % 

e. At book value without adjustment


  (minimal or no charge or adjustment)

      22,365        —        12        22,377        17.92 % 

(2) Not subject to discretionary withdrawal

      14,102        —        60        14,162        11.34 % 

(3) Total (gross: direct + assumed)

    $ 91,337      $ 3,589      $          29,949      $ 124,875        100.00 % 

(4) Reinsurance ceded

      244        —        —        244     

(5) Total (net)* (3) - (4)

    $       91,093      $          3,589      $ 29,949      $ 124,631     

(6) Amount included in A(1)b above that will move to A(1)e in the year after statement date:

    $ 2,966      $ —      $ —      $ 2,966     

* Reconciliation of total annuity actuarial reserves and deposit fund liabilities.

 

 
48

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

B. Group Annuities:

 

           December 31, 2023  
(in millions)   

General

account

     

Separate

account with

guarantees

     

Separate

account non-

guaranteed

      Total     

% of

Total

  
(1)   Subject to discretionary withdrawal :               

a. With market value adjusted

    $ 162      $ 54      $ —      $ 216        0.63 % 

b. At book value less current surrender charge of 5% or more

      30        —        —        30        0.09 % 

c. At fair value

      —        —        13,681        13,681        39.80 % 

d. Total with market adjustment or at fair value

      192        54        13,681        13,927        40.52 % 

e. At book value without adjustment (minimal or no charge or adjustment)

      2,108        —        —        2,108        6.13 % 
(2)   Not subject to discretionary withdrawal      1,878        16,434        25        18,337        53.35 % 
(3)   Total (gross: direct + assumed)    $ 4,178      $ 16,488      $ 13,706      $ 34,372        100.00 % 
(4)   Reinsurance ceded      65        —        —        65     
(5)   Total (net)* (3) - (4)    $ 4,113      $ 16,488      $ 13,706      $ 34,307     

(6) Amount included in B(1)b above that will move to B(1)e in the year after statement date:

    $ 2      $ —      $ —      $ 2     

* Reconciliation of total annuity actuarial reserves and deposit fund liabilities.

C. Deposit-Type Contracts (no life contingencies):

 

           December 31, 2023  
(in millions)    General
account		      Separate
account with
guarantees		      Separate
account non-
guaranteed		      Total      % of
Total		  
(1)   Subject to discretionary withdrawal :               

a. With market value adjusted

    $ —      $ —      $ —      $ —        — % 

b. At book value less current surrender charge of 5% or more

      —        —        —        —        — % 

c. At fair value

      —        —        —        —        — % 

d. Total with market adjustment or at fair value

      —        —        —        —        — % 

e. At book value without adjustment

      537        —        8        545        3.87 % 
  (minimal or no charge or adjustment)
(2)   Not subject to discretionary withdrawal      13,495        —        54        13,549        96.13 % 
(3)   Total (gross: direct + assumed)    $ 14,032      $ —      $ 62      $ 14,094        100.00 % 
(4)   Reinsurance ceded      17        —        —        17     
(5)   Total (net)* (3) - (4)    $ 14,015      $ —      $ 62      $ 14,077     

(6) Amount included in C(1)b above that will move to C(1)e in the year after statement date:

    $ —      $ —      $ —      $ —     

* Represents annuity reserves reported in separate accounts liabilities.

 

 
49

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Withdrawal characteristics of Life Actuarial Reserves as of December 31, 2023:

 

           December 31, 2023  
         General Account      Separate Account - non-guaranteed  
         Account      Cash
value		      Reserve      Account      Cash
value		      Reserve  
(in millions)    value      value  

A. Subject to discretionary withdrawal,

                  

surrender values, or policy loans:

                  
(1)   Term policies with cash value    $ —      $ 642      $ 3,239      $ —      $ —      $ —  
(2)   Universal life      5,478        5,499        6,238        —        —        —  
(3)   Universal life with secondary guarantees      1,641        1,453        7,987        —        —        —  
(4)   Indexed universal life      743        665        730        —        —        —  
(5)   Indexed universal life with secondary      1,833        1,187        1,842        —        —        —  
  guarantees
(6)   Indexed life      —        —        —        —        —        —  
(7)   Other permanent cash value life insurance      2,183        8,605        9,854        1,760        1,760        1,760  
(8)   Variable life      —        —        —        —        —        —  
(9)   Variable universal life      113        103        140        1,649        1,642        1,636  

(10) Miscellaneous reserves

      —        —        —        —        —        —  

B. Not subject to discretionary withdrawal

                  

or no cash values

                  
(1)   Term policies without cash value      XXX        XXX      $ 11,514        XXX        XXX      $ —  
(2)   Accidental death benefits      XXX        XXX        15        XXX        XXX        —  
(3)   Disability - active lives      XXX        XXX        29        XXX        XXX        —  
(4)   Disability - disabled lives      XXX        XXX        208        XXX        XXX        —  
(5)   Miscellaneous reserves      XXX        XXX        2,200        XXX        XXX        —  

C. Total (gross: direct + assumed)

    $     11,991      $    18,154      $     43,996      $     3,409      $     3,402      $     3,396  

D. Reinsurance ceded

      6,979        10,192        25,651        —        —        —  

E. Total (net) (C) - (D)

    $ 5,012      $ 7,962      $ 18,345      $ 3,409      $ 3,402      $ 3,396  

12. SEPARATE ACCOUNTS

 

Separate Accounts

The separate accounts held by the Company consist primarily of variable life insurance policies and variable annuities. These contracts generally are non-guaranteed in nature such that the benefit is determined by the performance and/or market value of the investments held in the separate account. The net investment experience of the separate account is credited directly to the policyholder and can be positive or negative.

Certain other separate accounts relate to MVA fixed annuity contracts in which the assets are carried at amortized cost.

These policies are required to be held in the Company’s separate account by certain states, including Texas.

Certain other separate accounts relate to flexible premium adjustable life insurance and pension risk transfer annuities in which the assets are carried at amortized cost. These contracts provide the greater of guaranteed interest returns defined in the policy or interest in excess of the guaranteed rate as defined by the Company.

The Company does not engage in securities lending transactions within the separate accounts.

In accordance with the products/transactions recorded within the separate account, some assets are considered legally insulated whereas others are not legally insulated from the general account. The legal insulation of the separate account assets prevents such assets from being generally available to satisfy claims resulting from the general account.

General account reserves of $13 million and $7 million were established for the separate account reserve in excess of assets in subaccounts TFA1-B and TFA1-D, respectively.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The following table presents separate account assets by product or transaction:

 

      December 31, 2023      December 31, 2022  
(in millions)   

Legally

Insulated

Assets

     

Separate

Accounts

Assets (Not

Legally

Insulated)

     

Legally

Insulated

Assets

     

Separate

Accounts Assets
(Not Legally
Insulated)

  

Variable annuities

    $ 44,445      $ —      $ 42,104      $ —  

Variable life

      2,969        —        3,073        —  

Bank-owned life insurance – hybrid

      503        —        482        —  

Deferred annuities with MVA features

      401        —        417        —  

Pension risk transfer annuities

      18,022        —        11,453        —  

Annuities with MVA features

      —        2,427        —        2,148  

Fixed annuities excess interest adjustment features

      —        25        —        24  

Total

    $ 66,340      $ 2,452      $ 57,529      $ 2,172  

Some separate account liabilities are guaranteed by the general account. To compensate the general account for the risks taken, the separate accounts pay risk charges to the general account.

If claims were filed on all contracts, the current total maximum guarantee the general account would provide to the separate account as of December 31, 2023 and 2022 is $5.4 billion and $3.9 billion, respectively.

The separate account business seed money balances were $6 million and $0 million at December 31, 2023 and 2022, respectively.

The following table presents the risk charges paid by the separate accounts and the guarantees paid by the general account:

 

(in millions)   

Risk Charge

paid by the

Separate

Account

     

Guarantees

Paid by the

General

Account

  

2023

    $             558      $            65  

2022

      596        64  

2021

      539        36  

2020

      450        43  

2019

      383        35  

 

 
51

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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The following table presents information regarding the separate accounts:

 

           
 (in millions)    Indexed     

Non-

indexed

guarantee

less than

or equal

to 4%

     

Non-

indexed

guarantee

more than

4%

     

Non-

guaranteed

separate

accounts

      Total  

 December 31, 2023

               

 Premiums, considerations or deposits

    $ 803      $ —      $     178      $    6,597      $    7,578  

 Reserves for accounts with assets at:

               

 Market value

    $ —      $ —      $ —      $ 46,589      $ 46,589  

 Amortized costs

      2,611        17,306        617        —        20,534  

 Total reserves

    $   2,611      $   17,306      $ 617      $ 46,589      $ 67,123  

 By withdrawal characteristics:

               

 Subject to discretionary withdrawal with MVA

    $ 2,611      $ 17,179      $ 617      $ —      $ 20,407  

 At market value

      —        —        —        46,488        46,488  

 Subtotal

      2,611        17,179        617        46,488        66,895  

 Not subject to discretionary withdrawal

      —        127        —        101        228  

 Total reserves

    $ 2,611      $ 17,306      $ 617      $ 46,589      $ 67,123  

 December 31, 2022

               

 Premiums, considerations or deposits

    $ 434      $ —      $ 41      $ 4,964      $ 5,439  

 Reserves for accounts with assets at:

               

 Market value

    $ —      $ —      $ —      $ 44,187      $ 44,187  

 Amortized costs

      2,071        11,613        385        —        14,069  

 Total reserves

    $ 2,071      $ 11,613      $ 385      $ 44,187      $ 58,256  

 By withdrawal characteristics:

               

 Subject to discretionary withdrawal with MVA

    $ 2,071      $ 11,154      $ 385      $ —      $ 13,610  

 At market value

      —        —        —        44,094        44,094  

 Subtotal

      2,071        11,154        385        44,094        57,704  

 Not subject to discretionary withdrawal

      —        458        —        93        551  

 Total reserves

    $ 2,071      $ 11,612      $ 385      $ 44,187      $ 58,255  

December 31, 2021

               

 Premiums, considerations or deposits

    $ 414      $ —      $ 9      $ 6,659      $ 7,082  

 Reserves for accounts with assets at:

               

 Market value

    $ —      $ —      $ —      $ 56,703      $ 56,703  

 Amortized costs

      1,805        9,370        361        —        11,536  

 Total reserves

    $ 1,805      $ 9,370      $ 361      $ 56,703      $ 68,239  

 By withdrawal characteristics:

               

 Subject to discretionary withdrawal with MVA

    $ 1,805      $ 8,840      $ 361      $ —      $ 11,006  

 At market value

      —        —        —        56,565        56,565  

 Subtotal

      1,805        8,840        361        56,565        67,571  

 Not subject to discretionary withdrawal

      —        530        —        138        668  

 Total reserves

    $ 1,805      $ 9,370      $ 361      $ 56,703      $ 68,239  

Reconciliation of Net Transfers to or from Separate Accounts

The following table presents a reconciliation of the net transfers to (from) separate accounts:

 

      Years Ended December 31,  
  (in millions)    2023      2022     2021  

  Transfers to separate accounts

    $ 7,578      $      5,439     $      7,082  

  Transfers from separate accounts

      (5,500)        (4,330 )      (5,400 ) 

  Net transfers to (from) separate accounts

      2,078        1,109       1,682  

  Reconciling adjustments:

        

  Deposit-type contracts

      —        —       —  

  Total reconciling adjustments

      —        —       —  

  Transfers as reported in the Statutory Statements of Operations

    $      2,078      $ 1,109     $ 1,682  

 

 
52

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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

13. RESERVES FOR GUARANTEED POLICY BENEFITS AND ENHANCEMENTS

 

 

Variable annuity contracts may include certain contractually guaranteed benefits to the contract holder. These guaranteed features include GMDB that are payable in the event of death, and living benefits that are payable in the event of annuitization, or, in other instances, at specified dates during the accumulation period. Living benefits include GMWB and, to a lesser extent, guaranteed minimum accumulation benefits (“GMAB”), which are no longer offered. A variable annuity contract may include more than one type of guaranteed benefit feature; for example, it may have both a GMDB and a GMWB. However, a policyholder generally can only receive payout from one guaranteed feature on a contract containing a death benefit and a living benefit, i.e. the features are mutually exclusive. A policyholder cannot purchase more than one living benefit on one contract.

Reserves for GMDB, GMIB and GMWB were included in the VACARVM reserves. Total reserves in excess of cash surrender value were $103.1 million and none at December 31, 2023 and 2022, respectively.

GMDB and GMIB

Depending on the product, the GMDB feature may provide a death benefit of either (a) total deposits made to the contract less any partial withdrawals plus a minimum return or (b) the highest contract value attained, typically on any anniversary date minus any subsequent withdrawals following the contract anniversary. GMIB guarantees a minimum level of periodic income payments upon annuitization. GMDB is the Company’s most widely offered benefit; variable annuity contracts may also include GMIB to a lesser extent, which is no longer offered.

GMWB

Certain of the Company’s variable annuity contracts offer optional GMWB. With a GMWB, the contract holder can monetize the excess of the guaranteed amount over the account value of the contract only through a series of withdrawals that do not exceed a specific percentage per year of the guaranteed amount. If, after the series of withdrawals, the account value is exhausted, the contract holder will receive a series of annuity payments equal to the remaining guaranteed amount, and, for lifetime GMWB products, the annuity payments continue as long as the covered person(s) are living.

14. PARTICIPATING POLICY CONTRACTS

 

 

Participating policy contracts entitle a policyholder to share in earnings through dividend payments. These contracts represented less than 1.0 percent of gross insurance in-force at December 31, 2023, 2022 and 2021, respectively. Policyholder dividends for the years ended December 31, 2023, 2022 and 2021 were $13 million, $10 million, and $13 million, respectively.

15. PREMIUM AND ANNUITY CONSIDERATIONS DEFERRED AND UNCOLLECTED

 

 

The following table presents the deferred and uncollected insurance premiums and annuity consideration (before deduction for amounts non-admitted):

 

      December 31, 2023           December 31, 2022  
  (in millions)    Gross    

Net of

Loading

    

 

    Gross    

Net of

Loading

  

  Ordinary new business

    $ 22     $ 22        $ 22     $ 22  

  Ordinary renewal

      (503 )      39          (416 )      132  

  Group life

      (1 )      (1 )         (2 )      (2 ) 

  Total

    $       (482 )    $       60          $       (396 )    $       152  

 

 

 
53

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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

16. REINSURANCE

 

 

In the ordinary course of business, the Company utilizes internal and third-party reinsurance transactions to manage insurance risks and to facilitate capital management strategies. Long-duration reinsurance is effected principally under yearly renewable term treaties. Pools of highly-rated third party reinsurers are utilized to manage net amounts at risk in excess of retention limits. Reinsurance agreements do not relieve the Company of its direct obligations to insureds and beneficiaries. Thus, a credit exposure exists with respect to reinsurance ceded to the extent that any reinsurer fails to meet the obligations assumed under any reinsurance agreement. In addition, the Company assumes reinsurance from other insurance companies.

Reinsurance premiums assumed in 2023, 2022 and 2021 were $4.9 billion, $24.5 billion and $2.3 billion, respectively. Reinsurance premiums ceded in 2023, 2022 and 2021 were $2.5 billion, $2.7 billion and $3.3 billion, respectively. Additionally, reserves on reinsurance assumed were $9.8 billion, $5.5 billion and $4.5 billion at December 31, 2023, 2022 and 2021, respectively. The reserve credit taken on reinsurance ceded was $26.0 billion, $24.4 billion and $24.6 billion at December 31, 2023, 2022 and 2021, respectively. Amounts payable or recoverable for reinsurance on policy and contract liabilities are not subject to periodic or maximum limits. At December 31, 2023 and 2022, the Company’s reinsurance recoverables were $251 million and $270 million, respectively.

The Company does not have any reinsurance agreements in effect under which the reinsurer may unilaterally cancel any reinsurance for reasons other than for nonpayment of premium or other similar credits. The Company has no reinsurance agreements in effect such that the amount of losses paid or accrued through the statement date may result in a payment to the reinsurer of amounts which, in aggregate and allowing for offset of mutual credits from other reinsurance agreements with the same reinsurer, exceed the total revenue collected under the reinsured policies.

The Company previously entered into a reinsurance agreement with Hannover Life Reassurance Company of America (“Hannover”) effective July 1, 2016, under which the Company ceded blocks of whole life policies on a coinsurance with funds withheld basis and a block of current assumption universal life business on a yearly renewable term basis. Effective December 31, 2016, the Company recaptured certain term and universal life policies that had been ceded to AGC Life and concurrently amended and restated the July 1, 2016 reinsurance treaty (the “A&R Treaty”) with Hannover to add this in-force term and guaranteed universal life business on a coinsurance basis and additional current assumption universal life on a yearly renewable term basis.

 

 
54

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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Effective March 31, 2023, the Company recaptured term life business issued from 2017 through 2019 that had previously been ceded to AGC Life on a coinsurance/modified coinsurance basis and concurrently amended the A&R Treaty with Hannover to add this in-force term life business on a coinsurance with funds withheld basis. The Company recognized the net benefit of the recapture and simultaneous cession as a direct credit to surplus of $93 million at March 31, 2023. This increase in surplus will be amortized to income over the life of the treaty.

 

 (in millions)        March 31 Recapture 
from AGC Life		        March 31 Cession to 
Hannover		         Net Impact of  
Reinsurance

Increase (Decrease)

            

Summary Of Operations

            

Premiums

   $   1,538   $   (1,738)   $   (200)

Commissions on reinsurance ceded

     (1,054)     1054     —

Reserve adjustments on reinsurance ceded

     (484)     —      (484)
   

 

    

 

    

 

Total revenue

   $   —   $   (684)   $   (684)

Increase in aggregate reserves for life contracts

   $   1,054   $   (1,738)   $   (684)

Federal income tax expense (benefit)

     (221)     221     —
   

 

    

 

    

 

Net income

   $   (833)   $   833   $   —
   

 

    

 

    

 

Capital and Surplus Account

            

Change in surplus as a result of reinsurance

   $   —   $   93   $   93

Effective September 30, 2023, the Company recaptured universal life business issued from 2017 through 2019 that had previously been ceded to AGC Life on a coinsurance/modified coinsurance basis and concurrently amended the A&R Treaty with Hannover to add this in-force universal life business on a coinsurance with funds withheld basis. The Company recognized the net benefit of the recapture and simultaneous cession as a direct credit to surplus of $253 million at September 30, 2023. This increase in surplus will be amortized to income over the life of the treaty.

 

 (in millions)        Sept 30 Recapture 
from AGC Life		        Sept 30 Cession to 
Hannover		         Net Impact of  
Reinsurance

Increase (Decrease)

            

Summary Of Operations

            

Premiums

   $   2,092   $   (2,035)   $   57

Commissions on reinsurance ceded

     (939)     939     —

Reserve adjustments on reinsurance ceded

     (1,153)     —     (1,153)
   

 

    

 

    

 

Total Revenue

   $   —   $   (1,096)   $   (1,096)

Increase in aggregate reserves for life contracts

   $   939   $   (2,035)   $   (1,096)

Federal income tax expense (benefit)

     (197)     197     —
   

 

    

 

    

 

Net Income

   $   (742)   $   742   $   —
   

 

    

 

    

 

Capital and Surplus Account

            

Change in surplus as a result of reinsurance

   $   —   $   253   $   253

 

 
55

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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The Company previously ceded term and universal life insurance business issued from January 1, 2020 to December 31, 2021 to AGC Life on a coinsurance/modified coinsurance basis. Effective October 1, 2023, AGL recaptured this business, resulting in a $66 million decrease in the Company’s net income.

 

 (in millions)        Oct 1 Recapture from 
AGC Life

Increase (Decrease)

    

Summary Of Operations

    

Premiums

   $     129  

Commissions on reinsurance ceded

       (83)  

Reserve adjustments on reinsurance ceded

       (46)  

Total Revenue

   $     —   

Increase in aggregate reserves for life contracts

   $     83   

Federal income tax expense (benefit)

       (17 ) 
   

 

 

 

Net Income

   $     (66 ) 
   

 

 

 

The coinsurance/modified coinsurance agreements with AGC Life increased the Company’s pre-tax earnings by $63 million in 2023 (excluding the impact of recaptures). In 2022 and 2021, the coinsurance/modified coinsurance agreements with AGC Life increased the Company’s pre-tax earnings by $91 million and $333 million, respectively.

The Company has a modified coinsurance reinsurance agreement with VALIC, pursuant to which certain blocks of VALIC’s VA business are ceded to the Company. At December 31, 2023 and 2022, the liabilities resulting from the agreement and recorded in the accompanying financial statements were $19.9 billion and $22.4 billion, respectively. In 2023 and 2022, the agreement increased the Company’s pre-tax earnings by $319 million and $120 million (excluding initial accounting), respectively. Related to the agreement, included within Other income are assumed expense risk charges of $393 million and $88 million for 2023 and 2022, respectively.

As of December 31, 2023, and 2022, $22.0 billion and $23.9 billion of the Company’s reserves representing a mix of run-off life and annuity risks were ceded to Fortitude Reinsurance Company Ltd.(“Fortitude Re”) under modified coinsurance agreements.

The Company has an annuity coinsurance/modified coinsurance agreement with Corebridge Bermuda in which Corebridge Bermuda reinsures certain deferred annuity contracts issued between 2003 and 2007. The agreement is such that the Company retains and controls assets held in relation to the related reserve. At December 31, 2023 and 2022, the liabilities resulting from the agreement and recorded in the accompanying financial statements were $4.1 billion and $5.0 billion, respectively. In each of 2023, 2022 and 2021, the agreement decreased the Company’s pre-tax earnings by $1 million.

17. FEDERAL INCOME TAXES

 

 

Recent U.S. Tax Law Changes

On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which finances climate and energy provisions and an extension of enhanced subsidies under the Affordable Care Act with a 15%, CAMT, on adjusted financial statement income for corporations with profits over $1 billion, a 1% stock buyback tax, increased Internal Revenue Service (“IRS”) enforcement funding, and Medicare’s new ability to negotiate prescription drug prices. The AGC Life Insurance Company consolidated federal income tax return group, of which the Company is a member, has determined that as of the reporting date it is an applicable reporting entity for the CAMT.

Although the U.S. Treasury and IRS issued interim CAMT guidance during 2023, many details and specifics of application of the CAMT remain subject to future guidance. The Company’s estimated CAMT liability will continue to be refined based on future guidance.

 

 
56

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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The following table presents the components of the net deferred tax assets and liabilities:

 

      December 31, 2023      December 31, 2022      Change  
 (in millions)    Ordinary       Capital       Total       Ordinary       Capital       Total       Ordinary       Capital       Total  

Gross DTA

    $  3,478      $  1,993      $  5,471      $  3,280      $  2,472      $  5,752      $  198      $  (479 )     $  (281 ) 

Statutory valuation allowance adjustment

      —        183        183        —        303        303        —        (120 )       (120 ) 

Adjusted gross DTA

      3,478        1,810        5,288        3,280        2,169        5,449        198        (359 )       (161 ) 

DTA non-admitted

      2,195        1,810        4,005        1,983        2,169        4,152        212        (359 )       (147 ) 

Net admitted DTA

      1,283        —        1,283        1,297        —        1,297        (14 )       —        (14 ) 

DTL

      119        —        119        210        —        210        (91 )       —        (91 ) 

Total

    $ 1,164      $ —      $ 1,164      $ 1,087      $ —      $ 1,087      $ 77      $ —      $ 77  

The following table presents the ordinary and capital DTA admitted assets as the result of the application of SSAP 101:

 

      December 31, 2023      December 31, 2022      Change  
 (in millions)    Ordinary       Capital       Total       Ordinary       Capital       Total       Ordinary      Capital       Total  

Admission calculation components

                          

SSAP 101

                          

Federal income taxes paid in prior years recoverable through loss carry backs

    $ —      $  —      $  —      $  —      $  —      $  —      $  —     $  —      $  —  

Adjusted gross DTA expected to be realized (excluding amount of DTA from above) after application of the threshold limitation

      1,164        —        1,164        1,087        —        1,087        77       —        77  

1. Adjusted gross DTA expected to be realized following the reporting date

      1,164        —        1,164        1,087        —        1,087        77       —        77  

2. Adjusted gross DTA allowed per limitation threshold

      —        —        1,164        —        —        1,299        —       —        (135 ) 

Adjusted gross DTA (excluding the amount of DTA from above) offset by gross DTL

      119        —        119        210        —        210        (91 )      —        (91 ) 

DTA admitted as the result of application of SSAP 101

    $  1,283      $  —      $ 1,283      $  1,297      $  —      $  1,297      $  (14 )    $  —      $  (14 ) 

The following table presents the ratio percentage and amount of adjusted capital to determine the recovery period and threshold limitation amount:

 

      Years Ended December 31,  
 ($ in millions)    2023     2022  

Ratio percentage used to determine recovery period and threshold limitation amount

      700  %      736  % 

Amount of adjusted capital and surplus used to determine recovery period and threshold limitation amount

    $   7,759     $   8,662  

The Company has no tax planning strategies used in the determination of adjusted gross DTA’s or net admitted DTA’s.

The Company’s planning strategy does not include the use of reinsurance.

The Company is not aware of any significant DTLs that are not recognized in the statutory financial statements.

 

 
57

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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The following tables present the major components of the current income tax expense and net deferred tax assets (liabilities):

 

      Years Ended December 31,  
 (in millions)    2023     2022     2021  

 Current income tax expense

       

Federal

    $ (52 )    $ 518     $ 1,421  

Foreign

      —       —       1  

Subtotal

      (52 )      518       1,422  

Federal income tax on net capital gains (losses)

      (170 )      (397 )      (3 ) 

Federal income tax incurred

      (222 )      121       1,419  
                    
     Years Ended December 31,  
 (in millions)    2023     2022     Change  

Deferred tax assets:

       

Ordinary:

       

Policyholder reserves

    $ 1,644     $ 1,343     $ 301  

Investments

      223       243       (20)  

Deferred acquisition costs

      1,133       1,080       53  

Fixed assets

      401       102       299  

Policyholder Dividend Accruals

      4       4       —  

Compensation and benefits accrual

      42       45       (3 ) 

Tax credit carryforward

      —       —       —  

Net operating loss carry-forward

      1       435       (434 ) 

Other (including items less than 5% of total ordinary tax assets)

      30       28       2  

Subtotal

      3,478       3,280       198  

Non-admitted

      2,195       1,983       212  

Admitted ordinary deferred tax assets

      1,283       1,297       (14 ) 

Capital:

       

Investments

      1,993       2,472       (479 ) 

Subtotal

      1,993       2,472       (479 ) 

Statutory Valuation Adjustment

      183       303       (120 ) 

Non-admitted

      1,810       2,169       (359 ) 

Admitted capital deferred tax assets

      —       —       —  

Admitted deferred tax assets

      1,283       1,297       (14 ) 

Deferred tax liabilities:

       

Ordinary:

       

Deferred and uncollected premium

      56       105       (49 ) 

Policyholder reserves

      62       104       (42 ) 

General expense

      —       —       —  

Other (including items less than 5% of total ordinary tax liabilities)

      1       1       —  

Subtotal

      119       210       (91 ) 

Capital:

       

Other (including items less than 5% of total capital tax liabilities)

      —       —       —  

Subtotal

      —     $    —     $    —  

Deferred tax liabilities

      119       210       (91 ) 

Net deferred tax assets

    $  1,164     $  1,087       77  

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

The change in net deferred income taxes is comprised of the following (this analysis is exclusive of non-admitted assets as the change in non-admitted assets and the change in net deferred income taxes are reported in separate components of capital and surplus):

 

(in millions)

      Years Ended December 31,            Change  
   2023      2022  

Total adjusted deferred tax assets

    $ 5,288      $ 5,449      $ (161)  

Total deferred tax liabilities

      119        210        (91)  

Net adjusted deferred tax assets

    $ 5,169      $ 5,239        (70)  

Tax effect of unrealized gains (losses)

                        126  

Change in net deferred income tax

            56  

The provision for incurred federal taxes is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes. The following table presents the significant items causing this difference:

 

       December 31, 2023       December 31, 2022       December 31, 2021   
 (in millions)    Amount     Effective
Tax Rate		     Amount     Effective
Tax Rate		     Amount     Effective
Tax Rate		  

Income tax expense at applicable rate

    $ (16 )      21.0   %    $ 191       21.0   %    $ 769       21.0   % 

Change in valuation adjustment

      (120 )      154.8       303       33.2       —       —  

Disregarded entities

      1       (1.2 )      (56 )      (6.2 )      (152 )      (4.3 ) 

Amortization of interest maintenance reserve

      (82 )      105.5       (97 )      (10.4 )      21       0.6  

Surplus adjustments

      50       (65.0 )      (38 )      (4.2 )      (17 )      (0.5 ) 

Dividend received deduction

      (26 )      33.2       (14 )      (1.6 )      (15 )      (0.4 ) 

Prior year return true-ups and adjustments

      (84 )      108.5       (25 )      (2.8 )      (11 )      (0.3 ) 

Other permanent adjustments

      (3 )      3.8       (8 )      (0.9 )      11       0.3  

Change in non-admitted assets

      10       (12.7 )      8       0.9       6       0.2  

LTIP shortfall deduction

      (8 )      10.7       (4 )      (0.4 )      2       0.1  

Separation adjustment on pensions

    $ —       —     $ (99 )      (10.9 )    $ —       —  

Statutory income tax expense (benefit)

    $ (278 )      358.6   %    $ 161       17.7   %    $ 614       16.7   % 

Federal income taxes incurred

    $ (222 )      286.4   %    $ 121       13.3   %    $ 1,419       38.7   % 

Change in net deferred income taxes

      (56 )      72.2       40       4.4       (805 )      (22.0 ) 

Total statutory income taxes

    $ (278 )      358.6   %    $ 161       17.7   %    $ 614       16.7   % 

At December 31, 2023, the Company had no foreign tax credit carryforwards.

At December 31, 2023, the Company had U.S federal operating loss carryforwards of $0.6 million.

At December 31, 2023, the Company had no capital loss carryforwards.

At December 31, 2023, the Company had no alternative minimum tax credits.

At December 31, 2023, the Company had no general business credit carryforwards.

At December 31, 2023, the Company had no CAMT credits.

The following table presents income tax incurred that is available for recoupment in the event of future net losses:

 

(in millions)        
December 31,                  Capital  

2021

    $ 532  

2022

      —  

2023

      —  

Total

    $ 532  

In general, realization of DTAs depends on a company’s ability to generate sufficient taxable income of the appropriate character within the carryforward periods in the jurisdictions in which the net operating losses and deductible temporary differences were incurred. In accordance with the requirements established in SSAP 101, the Company assessed its

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

ability to realize DTAs of $5.5 billion and concluded that $183 million valuation allowance was required at December 31, 2023. The Company had concluded that $303 million valuation allowance was required on the DTAs of $5.8 billion at December 31, 2022.

The Company had no deposits admitted under Internal Revenue Code Section 6603.

The following table presents a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits, excluding interest and penalties:

 

 (in millions)

    Years Ended December 31,  
   2023      2022  

Gross unrecognized tax benefits at beginning of year

    $ 7      $ 7  

Increases in tax position for prior years

      —        —  

Decreases in tax position for prior years

      —        —  

Gross unrecognized tax benefits at end of year

    $ 7      $ 7  

At December 31, 2023 and 2022, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $7 million & $7 million, respectively.

Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At December 31, 2023 and 2022, the Company had accrued liabilities of $(0.1) million, respectively, for the payment of interest (net of the federal benefit) and penalties. In 2023 and 2022, the Company did not recognize any expense of interest (net of the federal benefit) and penalties. In 2021, the Company recognized benefit of interest (net of the federal expense) and penalties of $7 million.

The Company regularly evaluates proposed adjustments by taxing authorities. At December 31, 2023, such proposed adjustments would not have resulted in a material change to the Company’s financial condition, although it is possible that the effect could be material to the Company’s results of operations for an individual reporting period. Although it is reasonably possible that a change in the balance of unrecognized tax benefits may occur within the next twelve months, based on the information currently available, the Company does not expect any change to be material to its financial condition.

The Company is currently under IRS examinations for the taxable years 2011-2019 and engaging in the IRS Appeals process in regard to years 2007-2010. Although the final outcome of possible issues raised in any future examination are uncertain, the Company believes that the ultimate liability, including interest, will not materially exceed amounts recorded in the financial statements. The Company’s taxable years 2007-2022 remain subject to examination by major tax jurisdictions.

The Company is not subject to the repatriation transition tax for the year ended December 31, 2023.

For the period prior to the Corebridge IPO on September 19, 2022, the Company joined in the filing of a consolidated federal income tax return with AIG. For the period following the IPO, the Company will join with AGC Life, VALIC, USL and Corebridge Bermuda in filing a consolidated life company federal income tax return.

The Company has a written agreement with both parent entities, AIG and AGC Life, under which each subsidiary agrees to pay the parent company an amount equal to the consolidated federal income tax expense multiplied by the ratio that the subsidiary’s separate return tax liability bears to the consolidated tax liability, plus one hundred percent of the excess of the subsidiary’s separate return tax liability over the allocated consolidated tax liability. Both AIG and AGC Life agree to pay each subsidiary for the tax benefits, if any, of net operating losses, net capital losses and tax credits which are not usable by the subsidiary but which are used by other members of the consolidated group.

The Company may be charged with a portion of CAMT incurred by the AGC Life consolidated group (or credited with a portion of the consolidated group’s CAMT credit utilization).

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

18. CAPITAL AND SURPLUS

 

RBC standards are designed to measure the adequacy of an insurer’s statutory capital and surplus in relation to the risks inherent in its business. The RBC standards consist of formulas that establish capital requirements relating to asset, insurance, business and interest rate risks. The standards are intended to help identify companies that are under-capitalized, and require specific regulatory actions in the event an insurer’s RBC is deficient. The RBC formula develops a risk-adjusted target level of adjusted statutory capital and surplus by applying certain factors to various asset, premium and reserve items. Higher factors are applied to more risky items and lower factors are applied to less risky items. Thus, the target level of statutory surplus varies not only because of the insurer’s size, but also on the risk profile of the insurer’s operations. At December 31, 2023, the Company exceeded RBC requirements that would require any regulatory action.

The Company is subject to the Texas Insurance Code (“TIC”), which imposes certain restrictions on shareholder dividends. Pursuant to TIC 823.107, the maximum amount of dividends in a 12-month period, measured retrospectively from the date of payment, which can be paid by the Company without prior approval of the Texas Insurance Commissioner (the “Commissioner”), is the greater of (i) 10% of its policyholder surplus as of the end of the immediately preceding calendar year; or (ii) its net gain from operations for the immediately preceding calendar year (excluding realized gains), not including pro rata distributions of such insurance company’s own securities. The Company will be permitted to pay a dividend to its shareholder in excess of the greater of such two amounts (i.e., an extraordinary dividend) only if it files notice of the declaration of such an extraordinary dividend and the amount thereof with the Commissioner and the Commissioner either approves the distribution of the extraordinary dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (“unassigned funds (surplus)”) calculated as of the most recent financial information available would require the filing of a notice of an extraordinary dividend with the Commissioner.

The maximum amount, before considering the dividend test discussed below, that would qualify as an ordinary dividend, which would consequently be free from restriction and available for payment of dividends to AGC Life (as immediate parent company), by the Company in 2024 is $892 million. The estimated ordinary dividend capacity of the Company is further limited by the fact that the dividend test under Texas insurance law is based on dividends previously paid over a rolling twelve-month period. Consequently, depending on the actual payment dates during 2024, some or all of the dividends estimated to be ordinary in 2024 may require regulatory approval or non-disapproval. Dividend payments in excess of positive retained earnings are classified and reported as a return of capital.

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

Dividends are paid as determined by the Board of Directors and are noncumulative. The following table presents the dividends paid by the Company during 2023, 2022 and 2021:

 

Date   

Type

   

Cash or Non-cash

    Amount
(in millions)		  

2023

         

March 27, 2023

    Ordinary    Cash    $ 500  

June 20, 2023

    Ordinary    Cash      500  

September 19, 2023

    Ordinary    Cash      500  

December 20 2023

    Ordinary    Cash      481  

December 20 2023

    Extraordinary    Cash      19  

2022

         

March 28, 2022

    Ordinary    Cash    $ 400  

June 24, 2022

    Ordinary    Cash      400  

2021

         

March 15, 2021

    Ordinary    Cash    $ 199  

June 15, 2021

    Ordinary    Cash      266  

September 24, 2021

    Ordinary    Cash      214  

December 22, 2021

    Extraordinary    Non-Cash      295  

December 27, 2021

    Ordinary    Cash      71  

The Company has 8,500 shares of $100 par value cumulative preferred stock authorized and outstanding at December 31, 2023.

19. RETIREMENT AND SHARE-BASED AND DEFERRED COMPENSATION

 

 

The Company does not directly sponsor any defined benefit or defined contribution plans and does not participate in any multi-employer plans.

Employee Retirement and Postretirement Benefit Plans

Certain employees and retirees of the Company participated in various AIG-sponsored defined benefit pension and postretirement plans. AIG, as sponsor, is ultimately responsible for the maintenance of these plans in compliance with applicable laws. The Company is not directly liable for obligations under these plans; its obligation results from AIG’s allocation of the Company’s share of expenses from the plans based on participants’ earnings for the pension plans and on estimated claims less contributions from participants for the postretirement plans.

The following table presents information about employee-related costs (expense credits) allocated to the Company:

 

          Years Ended December 31,       
 (in millions)   2023      2022     2021  

Defined benefit plans

   $ 7      $ (9 )    $ (11)  

Postretirement medical and life insurance plans

     —        1       1  

Total

   $ 7      $ (8 )    $ (10)  

Defined Contribution Plan

Prior to August 22, 2022, the Company’s employees participated in AIG’s qualified defined contribution plan that provided for contributions by employees, as well as an employer contribution. On August 22, 2022, participants’ accounts in the AIG plan were transferred to the Corebridge Financial Inc. Retirement Savings 401(k) Plan.

The 401(k) plan provides for pre-tax salary reduction contributions by its U.S. employees. Employer matching contributions of 100 percent were made on the first six percent of participant contributions, subject to IRS-imposed limitations, and an additional fully vested, non-elective, non-discretionary employer contribution equal to three percent of

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)

 

 

the participant’s annual base compensation for the plan year, paid each pay period regardless of whether the participant currently contributes to the plan, and subject to the IRS-imposed limitations.

The Company’s pre-tax expense associated with this plan was $23 million, $28 million and $27 million in 2023, 2022 and 2021, respectively.

Share-based and Deferred Compensation Plans

Prior to the IPO, certain Corebridge employees received grants of equity awards under the AIG Long Term Incentive Plan (as amended) and its predecessor plan, the AIG 2013 Long Term Incentive Plan, which are governed by the AIG 2013 Omnibus Incentive Plan. The value of AIG equity awards are linked to the performance of AIG’s common stock. AIG granted equity awards to the Company’s employees primarily in the form of AIG restricted stock units (“RSUs”) but also granted AIG performance share units (“PSUs”) and AIG stock options to certain executives. AIG RSUs that were held by the Company’s active employees on September 14, 2022 (the pricing date for the IPO) were converted into RSUs linked to the performance of Corebridge stock (“Corebridge RSUs”), on terms and conditions that are substantially the same as the corresponding AIG RSUs, with the number of AIG RSUs adjusted in a manner intended to preserve their intrinsic value as of immediately before and immediately following the conversion (subject to rounding).

Following the IPO, the Company’s employees participate in several stock compensation programs under the Corebridge Financial, Inc. Long-term Incentive Plan (each as applicable, the “LTIP”), which are governed by the Corebridge Financial, Inc. 2022 Omnibus Incentive Plan, as amended and restated on February 16, 2023. Corebridge’s LTIP provides for an annual award to certain employees, including senior executive officers and other highly compensated employees, that may comprise a combination of one or more of the following units: RSUs or stock options. RSUs and stock options are earned based solely on continued service by the participant and vesting occurs in three equal installments on the first, second and third anniversaries of the grant date.

The Company recognized compensation expenses of $23 million, $31 million and $28 million for the years ending December 31, 2023, 2022 and 2021, respectively, on the grant date of the awards.

20. DEBT

 

The Company is a member of the Federal Home Loan Bank (“FHLB”) of Dallas. Membership with the FHLB provides the Company with collateralized borrowing opportunities, primarily as an additional source of liquidity or for other uses deemed appropriate by management. The Company’s ownership in the FHLB stock is reported as common stock.

Pursuant to the membership terms, the Company elected to pledge such stock to the FHLB as collateral for the Company’s obligations under agreements entered into with the FHLB.

Cash advances obtained from the FHLB are reported in and accounted for as borrowed money. The Company may periodically obtain cash advances on a same-day basis, up to a limit determined by management and applicable laws.

The Company is required to pledge certain mortgage-backed securities, government and agency securities and other qualifying assets to secure advances obtained from the FHLB. To provide adequate collateral for potential advances, the Company has pledged securities to the FHLB in excess of outstanding borrowings. Upon any event of default by the Company, the recovery by the FHLB would generally be limited to the amount of the Company’s liability under advances borrowed. The Company’s net borrowing capacity at December 31, 2023 is $2 billion

The following table presents the aggregate carrying value of stock held with the FHLB of Dallas and the classification of the stock:

 

         December 31,     
(in millions)    2023      2022  

Membership stock - Class B

    $ 7      $ 7  

Activity stock

      183        141  

Excess stock

      5        15  

Total

    $ 195      $ 163  

Actual or estimated borrowing capacity as determined by the insurer

    $ 6,536      $ 5,525  

The Company did not hold any Class A at December 31, 2023 or 2022.

 

 
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The following table presents the amount of collateral pledged, including FHLB common stock held, to secure advances from the FHLB:

 

         December 31, 2023            December 31, 2022     
(in millions)    Amortized
Cost		      Fair Value      Amortized
Cost		      Fair Value  

Amount pledged

    $ 6,938      $ 6,239      $ 5,043      $ 4,432  

Maximum amount pledged during reporting period

      7,070        6,098        5,131        4,486  

The Company’s borrowing capacity determined quarterly based upon the borrowing limit imposed by statute in the state of domicile.

The following table presents the outstanding funding agreements and maximum borrowings from the FHLB:

 

      December 31,  
(in millions)    2023      2022  

Amount outstanding

    $    4,475      $    3,448  

Maximum amount borrowed during reporting period

    $ 4,475      $ 3,448  

While the funding agreements are presented herein to show all amounts received from FHLB, the funding agreements are treated as deposit-type contracts, consistent with the other funding agreements for which the Company’s intent is to earn a spread and not to fund operations. The Company had no debt outstanding with the FHLB at December 31, 2023 or 2022.

The following table reflects the principal amounts of the funding agreements issued to the FHLB:

 

(in millions)      
Funding Agreements   

Date Issued

    Amounts  

10-year floating rate

    February 15, 2018    $ 1,148  

10-year floating rate

    February 15, 2018      1,277  

10-year floating rate

    February 15, 2018      175  

10-year floating rate

    February 6, 2018      87  

10-year floating rate

    January 25, 2018      31  

10-year floating rate

    May 23, 2017      52  

10-year floating rate

    January 31, 2017      67  

10-year floating rate

    January 12, 2017      57  

10-year floating rate

    June 14, 2016      254  

5-year fixed rate

    August 25, 2022      300  

5-year fixed rate

    March 01, 2023      506  

5-year fixed rate

    September 12, 2023      521  

21. COMMITMENTS AND CONTINGENCIES

 

Commitments

The Company had commitments to provide funding to various limited partnerships totaling $2.9 billion and at December 31, 2023 and $3.2 billion at December 31, 2022. The commitments to invest in limited partnerships and other funds may be called at the discretion of each fund, as needed and subject to the provisions of such fund’s governing documents, for funding new investments, follow-on investments and/or fees and other expenses of the fund. Of the total commitments at December 31, 2023, $1.4 billion are currently expected to expire in 2024, and the remainder by 2029 based on the expected life cycle of the related funds and the Company’s historical funding trends for such commitments.

At December 31, 2023 and 2022, the Company had $2.8 billion and $3.8 billion, respectively, of outstanding commitments related to various funding obligations associated with its investments in commercial mortgage loans. Of

 

 
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the total current commitments, $1.0 billion are expected to expire in 2024 and the remainder by 2036, based on the expected life cycle of the related loans and the Company’s historical funding trends for such commitments.

The Company has various long-term, noncancelable operating leases, primarily for office space and equipment, which expire at various dates over the next several years. At December 31, 2023, the future minimum lease payments under the operating leases are as follows:

 

(in millions)        

2024

    $ 6  

2025

      6  

2026

      6  

2027

      2  

2028

      2  

Thereafter

      —  

Total

    $     22  

Rent expense was $15 million, $16 million and $18 million in 2023, 2022 and 2021, respectively.

Contingencies

Legal Matters

Certain reinsurers have sought rate increases on certain yearly renewable term agreements. The Company is disputing the requested rate increases under these agreements. Certain reinsurers with whom the Company has disputes have initiated arbitration proceedings against the Company, and others may initiate them in the future. To the extent reinsurers have sought retroactive premium increases, the Company has accrued its current estimate of probable loss with respect to these matters.

AGL continues to defend against Moriarty v. American General Life Insurance Co. (S.D. Cal.), a putative class action involving Sections 10113.71 and 10113.72 of the California Insurance Code which was instituted against AGL on July 18, 2017. In general, those statutes require that for life-insurance policies issued and delivered in California: (1) the policy must contain a 60-day grace period during which the policy remains in force; (2) the insurer must provide a 30-day pre-lapse notice; and (3) the insurer must notify policy owners of the right to designate a secondary recipient for lapse notices. The Moriarty plaintiff contends AGL did not comply with these requirements for a policy issued before these statutes went into effect. The plaintiff seeks damages and other relief. AGL asserts various defenses to the plaintiff’s claims and to class certification. In 2022, the District Court held a trial was necessary to determine whether AGL was liable, and it denied class certification. In May 2023, the case was reassigned to a new judge. On August 14, 2023, the District Court granted the plaintiff’s motion for summary judgment on the plaintiff’s breach-of-contract claim. On September 26, 2023, the District Court decided that good cause exists to allow the plaintiff to file a third motion for class certification. At the same time, however, the District Court certified its August 14, 2013 order for interlocutory appeal to the Ninth Circuit and stayed trial-court proceedings pending the outcome of AGL’s appeal. The Ninth Circuit granted AGL’s petition for interlocutory appeal on November 21, 2023. Briefing in the Ninth Circuit appeal is expected to be complete in mid-2024, with a decision by the Ninth Circuit at some time after that.

AGL is defending other actions in California involving similar issues: Allen v. Protective Life Insurance Co. (E.D. Cal.), filed on June 6, 2022, in which the individual plaintiff filed a motion on August 11, 2023 seeking leave to amend the complaint to add class-action allegations against AGL; and Chuck v. American General Life Insurance Co. (C.D. Cal.), which was filed on September 6, 2023 as a putative class action. However, Plaintiff filed an amended complaint on January 8, 2024 dropping the class action allegation against AGL and adding a sales agent as a defendant.

These cases are in the early stages, and AGL expects their progress will be influenced by future developments in Moriarty and cases against other insurers involving the same statutes.

AGL has accrued its current estimate of probable loss with respect to these litigation matters.

Various other lawsuits against the Company have arisen in the ordinary course of business. The Company believes it is unlikely that contingent liabilities arising from such lawsuits will have a material adverse effect on the Company’s financial position, results of operations or cash flows.

 

 
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Regulatory Matters

Various federal, state or other regulatory agencies may from time to time review, examine or inquire into the operations, practices and procedures of the Company, such as through financial examinations, subpoenas, investigations, market conduct exams or other regulatory inquiries. Based on the current status of pending regulatory examinations, investigations, and inquiries involving the Company, the Company believes it is not likely that these regulatory examinations, investigations, or inquiries will have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Other Contingencies

All fifty states and the District of Columbia have laws requiring solvent life insurance companies, through participation in guaranty associations, to pay assessments to protect the interests of policyholders of insolvent life insurance companies. These state insurance guaranty associations generally levy assessments, up to prescribed limits, on member insurers in a particular state based on the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer is engaged. Such assessments are used to pay certain contractual insurance benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. The Company accrues liabilities for guaranty fund assessments (“GFA”) when an assessment is probable and can be reasonably estimated. The Company estimates the liability using the latest information available from the National Organization of Life and Health Insurance Guaranty Associations. While the Company cannot predict the amount and timing of any future GFA, the Company has established reserves it believes are adequate for assessments relating to insurance companies that are currently subject to insolvency proceedings.

The Company accrued $41 million and $39 million for GFA at December 31, 2023 and 2022, respectively. The Company has recorded receivables of $31 million and $31 million at December 31, 2023 and 2022, respectively, for expected recoveries against the payment of future premium taxes.

During 1997 and 1998, the Company participated in a workers’ compensation underwriting pool with a third party insurance company. Both companies share equally in the pool. Collectively, the workers’ compensation business is assumed from over 50 ceding companies and retro-ceded to 15 programs. The business covers risks primarily from the 1997 and 1998 underwriting years but also includes risk from the 1996 underwriting year. There were no reinsurance recoverables on claim liabilities and reserves included in these financial statements related to the workers’ compensation business at both December 31, 2023 and 2022. While not included in these statutory financial statements, the Company is contingently liable for losses incurred by its 50 percent pool participant should that third party become insolvent or otherwise unable to meet its obligations under the pool agreement.

At December 31, 2023 and 2022, the Company had admitted assets of $62 million and $153 million, respectively, in premiums receivable due from policyholders (or agents). The Company routinely evaluates the collectability of these receivables. Based upon Company experience, the potential for any loss is not believed to be material to the Company’s financial condition.

The Company did not receive any business interruption insurance recoveries during the periods covered by this report.

22. RELATED PARTY TRANSACTIONS

 

Sale of Retail Mutual Funds Business

On February 8, 2021, Corebridge announced the execution of a definitive agreement with Touchstone Investments, Inc. (“Touchstone”), an indirect wholly owned subsidiary of Western & Southern Financial Group, to sell certain assets of its retail mutual funds business. This sale consisted of the reorganization of twelve of the retail mutual funds managed by the Company’s subsidiary SunAmerica Asset Management, LLC (“SAAMCo”) into certain Touchstone funds. Concurrently, the twelve retail mutual funds managed by SAAMCo, with $6.8 billion in assets, were reorganized into Touchstone funds. Additional consideration has been and 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. Corebridge continues to retain its fund management platform and capabilities dedicated to its variable annuity insurance products.

 

 
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Events Related to AIG and Corebridge

Separation of Life and Retirement Business from AIG and Relationship with Blackstone

On September 19, 2022, Corebridge completed an IPO in which AIG sold 80 million shares of Corebridge common stock to the public. Since the IPO, AIG has sold 159.8 million shares of Corebridge common stock and Corebridge has repurchased 17.2 million shares of its common stock from AIG. As of December 31, 2023, AIG owns 52.2% of outstanding common stock of Corebridge.

On November 2, 2021, Argon Holdco LLC (“Argon”), a wholly-owned subsidiary of Blackstone, Inc. (“Blackstone”), acquired a 9.9% equity stake in Corebridge and Corebridge entered into a long-term asset management relationship with Blackstone ISG-1 Advisors L.L.C (“Blackstone IM”). Pursuant to the partnership, Corebridge initially transferred $50 billion in book value of assets in its consolidated investment portfolio to Blackstone IM, with that amount to increase to an aggregate of $92.5 billion by the third quarter of 2027. As of December 31, 2023, Blackstone IM managed approximately $55.4 billion in book value of assets in Corebridge’s investment portfolio.

Pursuant to the Stockholders’ Agreement that Corebridge entered into with AIG and Argon at the time of acquisition of Argon’s Corebridge equity stake, Argon may not sell its ownership interest in Corebridge subject to exceptions permitting Argon to sell 25%, 67% and 75% of its shares after the first, second and third anniversaries, respectively, of the IPO, with the transfer restrictions terminating in full on the fifth anniversary of the IPO. Also, until Argon no longer owns at least 50% of its initial investment in Corebridge, it will have the right to designate for nomination for election one member of the Corebridge Board of Directors.

Prior to the IPO, Corebridge and certain U.S. subsidiaries were included in the consolidated federal income tax return of AIG as well as certain state tax returns where AIG files on a combined or unitary basis. The provision for income taxes is calculated on a separate return basis. Following the IPO, AIG owns a less than 80% interest in Corebridge, resulting in tax deconsolidation of Corebridge from the AIG Consolidated Tax Group and in a small minority of state jurisdictions which follow federal consolidation rules, the most significant being Florida. In addition, under the applicable law, AGC Life and its directly owned life insurance subsidiaries (the “AGC Group”) will not be permitted to join in the filing of a U.S. consolidated federal income tax return with other subsidiaries (collectively, the “Non-Life Group”) for the five year waiting period. Instead, the AGC Group is expected to file separately as members of the AGC consolidated U.S. federal income tax return during the five-year waiting period. Following the five-year waiting period, the AGC Group is expected to join the U.S. consolidated federal income tax return with the Non-Life Group.

Investment Management Agreements with BlackRock

Since April 2022, certain of the Corebridge insurers, including the Company, entered into investment management agreements with BlackRock Financial Management, Inc. (“BlackRock”) and its investment advisory affiliates. Under the investment management agreements with BlackRock, Corebridge completed the transfer of the management of liquid fixed income and certain private placement assets to BlackRock in 2022. As of December 31, 2023, BlackRock managed approximately $85.3 billion in book value of assets in Corebridge’s consolidated investment portfolio. In addition, liquid fixed income assets associated with the Fortitude Re portfolio were separately transferred to BlackRock for management in 2023. The investment management agreements contain detailed investment guidelines and reporting requirements. These agreements also contain reasonable and customary representations and warranties, standard of care, expense reimbursement, liability, indemnity and other provisions.

American Home and National Union Guarantees

The Company has a General Guarantee Agreement with American Home Assurance Company (“American Home”), an indirect wholly owned subsidiary of AIG. Pursuant to the terms of this agreement, American Home has unconditionally and irrevocably guaranteed insurance policies the Company issued between March 3, 2003 and December 29, 2006.

The Company, as successor-in-interest to American General Life and Accident Insurance Company (“AGLA”) has a General Guarantee Agreement with American Home. Pursuant to the terms of this agreement, American Home has unconditionally and irrevocably guaranteed policies of insurance issued by AGLA between March 3, 2003 and September 30, 2010.

The Company, as successor-in-interest to SunAmerica Annuity and Life Assurance Company (“SAAL”) and SunAmerica Life Insurance Company (“SALIC”) has a General Guarantee Agreement with American Home. Pursuant to the terms of

 

 
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this agreement, American Home has unconditionally and irrevocably guaranteed policies of insurance issued by SAAL and SALIC between January 4, 1999 and December 29, 2006.

The Company, as successor-in-interest to American General Life Insurance Company of Delaware, formerly known as AIG Life Insurance Company (“AIG Life”), has a General Guarantee Agreement with National Union Fire Insurance Company of Pittsburg, Pa. (“National Union”), an indirect wholly owned subsidiary of AIG. Pursuant to the terms of this agreement, National Union has unconditionally and irrevocably guaranteed insurance policies issued by AIG Life Holding, Inc. between July 13, 1998 and April 30, 2010.

Cut-Through Agreement

The Company and Corebridge Bermuda entered into a Cut-through Agreement in which insureds, their beneficiaries and owners were granted a direct right of action against the Company in the event Corebridge Bermuda becomes insolvent or otherwise cannot or refuses to perform its obligations under certain life insurance policies issued by Corebridge Bermuda. The Cut-through Agreement was approved by the TDI. The amount of the retained liability on Corebridge Bermuda’s books related to this agreement was approximately $320,000 and $330,000 for the years ending December 31, 2023 and 2022. The Company believes the probability of loss under this agreement is remote. No liability has been recognized in relation to this guarantee due to immateriality.

Affiliate Transactions

Effective January 1, 2011, the Company entered into a Reinsurance Agreement with AGC Life pursuant to which certain blocks of life business issued by the Company were ceded to AGC Life. The Reinsurance Agreement was non-disapproved by the TDI and Missouri Department of Commerce and Insurance (“MDCI”). Amendment 29 to the reinsurance agreement was approved by the TDI and MDCI effective December 31, 2020 to add certain term and universal life policies issued by AGL on or after January 1, 2020 to the reinsurance agreement. Amendment 29 was closed to new business as of December 31, 2021. Effective March 31, 2023, the Company recaptured certain XXX business issued from 2017 through 2019 from the treaty and concurrently ceded the business to an external reinsurer. Effective September 30, 2023, the Company recaptured certain AXXX business from the treaty issued from 2017 through 2019 and concurrently ceded the business to an external reinsurer. Effective October 1, 2023, the Company recaptured certain term and universal life business issued from 2020 through 2021 from the treaty.

Effective October 1, 2022, the Company entered into a modified coinsurance reinsurance agreement with VALIC, pursuant to which certain blocks of VALIC’s VA business were ceded to the Company. The ceded reserves and assets supporting the reserves remain on VALIC’s balance sheet, pursuant to the modified coinsurance structure. The business covered by the agreement includes substantially all of VALIC’s VA contracts, excluding those issued by VALIC in the State of New York and those that have been previously assumed (through reinsurance) by VALIC. At inception, VALIC ceded $22.9 billion of reserves and received a ceding commission of $1.5 billion from the Company representing the embedded profits in the business ceded. The majority of the initial ceding commission was recognized directly in surplus on an after-tax basis, while a portion of the ceding commission ($0.3 billion) was recognized as Commission and expense allowances on reinsurance ceded in the Summary of Operations as an offset to the related tax expense. The after-tax surplus impact will be amortized over the life of the treaty as the after-tax profits emerge on the reinsured business and will be recognized as Commission and expense allowances on reinsurance ceded in the Summary of Operations, offset by a corresponding charge to change in surplus as a result of reinsurance with no net impact on capital and surplus. After contract inception, the Company paid a ceding commission and expense allowance to reimburse VALIC for its commissions, related issue and policy administration expenses. The agreement was non-disapproved by the TDI. The agreement allows the Company and VALIC to more efficiently manage the reserve and capital requirements for their VA business.

In December 2022, the Company received capital contributions of $1.9 billion from AGC Life in connection with the Company and VALIC reinsurance transaction.

During 2023, the Company purchased $396 million and sold $10 million of securities, at fair market value, from or to one or more of its affiliates in the ordinary course of business.

On January 2, 2020, the Company sold its Houston Campus properties to an affiliate, 2929 REH, a newly formed limited liability company incorporated in the state of Texas. 2929 REH is owned by AIG Life Holdings, Inc. and Knickerbocker Corporation, a Texas corporation wholly owned by Corebridge Life Holdings. The sale of the properties is treated as a sale and leaseback transaction pursuant to SSAP 22R. The gain on sale of $253 million was recognized directly to

 

 
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special surplus funds and is subsequently amortized to unassigned surplus over a 10 year period. Amortization for the years ending December 31, 2023 and 2022 was $25 million each year.

Corebridge Life Holdings issued two senior promissory notes to the Company in the amount of $150,000,000 and $200,000,000 (“2019 Promissory Notes”) respectively in exchange for cash. Each of the promissory notes was supported by a guarantee issued by AIG for the benefit of the Company, with maturity dates of five and four years, respectively, and interest rates of 2.52% and 2.40% per year, respectively. On December 30, 2019, the TDI issued a letter allowing AGL to record the total amounts due under each promissory note as an admitted asset for the period ending March 31, 2020 and in each subsequent quarter thereafter subject to certain conditions and in accordance with applicable provisions of SSAP No. 25. On August 1, 2023, the guarantee of these promissory notes was novated from AIG to Corebridge. Effective January 2, 2024, Corebridge Life Holdings amended and restated the $200,000,000 promissory note to the Company, extending the note term for five years and updating the interest rate to 5.314%. The amended and restated promissory note was supported by an amended and restated guarantee issued by Corebridge for the benefit of the Company. On January 8, 2024, the TDI issued a letter allowing the Company to record the total amounts due under the amended and restated promissory note as an admitted asset for the period ending March 31, 2024, and in each subsequent quarter thereafter subject to certain conditions and in accordance with applicable provisions of SSAP No. 25.

On May 18, 2022, SAFG Capital LLC, a subsidiary of Corebridge, issued a senior promissory to the Company in the amount of up to $150,000,000. The promissory note is supported by a guarantee issued by Corebridge for the benefit of the Company. The promissory note has a maturity date and a rate per annum equal to term SOFR plus a total spread as defined in the agreement.

In 2018, AGLIC Investments Bermuda Limited, a Bermuda corporation (“AGLIC Bermuda”) was formed by the Company as an investment subsidiary under Texas Insurance Code Section 823.255. The Company made capital contributions of $11 million, $76 million, and $263 million in 2023, 2022 and 2021, respectively. AGLIC Bermuda made distributions to the Company of $738 million in 2023, $214 million in 2022 and $113 million in 2021.

At December 31, 2023, the Company’s unfunded capital commitment to US Fund I, US Fund II, US Fund III, US Fund IV, Europe Fund I and Europe Fund II (which are managed by an affiliate) were approximately $86.9 million, $73.8 million, $73.3 million ,$142.1 million, $49.8 million and $83.7 million, respectively.

At December 31, 2022, the Company’s unfunded capital commitment to US Fund I, US Fund II, US Fund III, US Fund IV, Europe Fund I and Europe Fund II were approximately $86.9 million, $79 million, $191 million, $75.8 million, $47 million and $179 million, respectively.

Financing Agreements

On May 17, 2022, the Company and certain of its affiliates entered into a revolving loan facility with Corebridge, pursuant to which the Company and each such affiliate can, on a several basis, borrow monies from Corebridge (as lender) subject to the terms and conditions stated therein. Principal amounts borrowed under this facility may be repaid and re-borrowed, in whole or in part, from time to time, without penalty. However, the total aggregate amount of loans borrowed by all borrowers under the facility cannot exceed $500,000,000.The loan facility also sets forth individual borrowing limits for each borrower, with the Company’s maximum borrowing limit being $500,000,000.

At both December 31, 2023 and 2022, the Company did not have a balance outstanding under this facility.

 

 
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Investments in Subsidiary, Controlled and Affiliated Entities

The following table presents information regarding the Company’s investments in non-insurance SCA entities as of December 31, 2023:

 

(in millions)    Gross
 Amount		     Non-
 admitted
Amount		       Admitted
Asset
Amount		    

Date of

NAIC

Filing

  

AGL LOAN INVESTMENTS CORPORATION

    $ 69     $ —      $ 69       5/7/2020  

AIG Direct - SER B

      1       1        —       NA  

AIG Direct - SER A

      1       1        —       NA  

AGLIC INVESTMENTS BERMUDA LTD.

      1       —        1       10/3/2020  

AIG Direct - NON VOTING

      1       1        —       NA  

American Gen Annuity Svc Corp

      —       —        —       NA  

UG Corp COM

      —       —        —       NA  

AGL Alternative Holdings, LLC

      270       —        270    

SA Affordable Housing LLC

      207       —        207       NA  

SunAmerica Asset Management LLC

      27       —        27       NA  

Corebridge Commercial Real Estate Lending Holdings, LLC

      2       —        2       NA  

SunAmerica Investors 3, LP

      65       —        65       NA  

GRE LB Industrial Joint Venture II, LP

      33       —        33       NA  

Corebridge Europe Real Estate Fund II LR Feeder, LLC

      95       —        95       NA  

Bayshore PII Company LLC

      9       —        9       NA  

Corebridge U.S. Real Estate Fund IV Development Sidecar LP

      48       —        48       NA  

SPAIG North Williams, LLC

      (3 )      —        (3 )      NA  

Clinton Grand Holdings LLC

      8       —        8       NA  

AIG LIQUID ALTERNATIVE EQUITY ALPHA FUND, LLC

      1       —        1       NA  

Corebridge U.S. Real Estate Fund III, LP

      154       —        154       NA  

Corebridge U.S. Real Estate Fund IV, LP

      179       —        179       NA  

Touchdown MGP, LLC

      —       —        —       NA  

Corebridge Europe Real Estate Fund I S.C.SP

      25       —        25       NA  

Bayshore Shopping Center JV LLC

      24       —        24       NA  

Corebridge U.S. Real Estate Fund II, LP

      102       —        102       NA  

Corebridge REI LB Southeast Industrial JV LLC

      74       —        74       NA  

Corebridge U.S. Real Estate Fund I, LP

      (26 )      —        (26 )      NA  

Branch Retail Partners II, LP

      (1 )      —        (1 )      NA  

Corebridge Bartlett Investor II LLC

      1       —        1       NA  

Corebridge Papermill Investor II LLC

      1       —        1       NA  

Corebridge U.S. LT Apartments JV, LP

      34       —        34       NA  

Total

    $ 1,402     $ 3      $ 1,399          

Operating Agreements

The Company has investments in a Liquidity Pool in which funds are managed by an affiliate, AIG Asset Management (U.S.), LLC, in the amount of $856 million and $585 million at December 31, 2023 and 2022, respectively.

Pursuant to service and expense agreements, AIG, Corebridge and affiliates provide, or cause to be provided, administrative, marketing, investment management, accounting, occupancy, and data processing services to the Company. The allocation of costs for services is based generally on estimated levels of usage, transactions or time incurred in providing the respective services. Generally, these agreements provide for the allocation of costs upon either the specific identification basis or a proportional cost allocation basis which management believes to be reasonable. In all cases, billed amounts pursuant to these agreements do not exceed the cost to AIG, Corebridge or the affiliate providing the service. The Company was charged $48 million, $69 million and $134 million under such agreements in 2023, 2022 and 2021, respectively.

 

 
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Pursuant to an amended and restated investment advisory agreement, the majority of the Company’s invested assets are managed by an affiliate. The investment management fees incurred were $119 million in 2023, $112 million in 2022 and $102 million in 2021.

The majority of the Company’s Swap agreements are entered into with an affiliated counterparty, AIG Markets, Inc. and Corebridge Markets, Inc. (See Note 8).

Other

The Company engages in structured settlement transactions, certain of which involve affiliated property and casualty insurance companies that are subsidiaries of AIG. In a structured settlement arrangement, a property and casualty insurance policy claimant has agreed to settle a casualty insurance claim in exchange for fixed payments over either a fixed determinable period of time or a life contingent period. In such claim settlement arrangements, a casualty insurance claim payment provides the funding for the purchase of a single premium immediate annuity issued by the Company for the ultimate benefit of the claimant. In certain structured settlement arrangements, the affiliated property and casualty insurance company remains contingently liable for the payments to the claimant.

23. SUBSEQUENT EVENTS

 

Management considers events or transactions that occur after the reporting date, but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosures. The Company has evaluated subsequent events through April 18, 2024, the date the financial statements were issued.

On March 11, 2024, Corebridge entered into an Amendment and Waiver of Consent and Voting Rights (the “Amendment and Waiver”) with AIG and certain affiliates of Argon and Blackstone that (i) amends the Stockholders Agreement, dated as of November 2, 2021, between Corebridge, AIG and Argon such that Argon shall have no right to consent to any repurchase of shares of common stock of Corebridge, par value $0.01 per share (“Corebridge Common Stock”) if such repurchase would result in Argon owning, of record, more than 9.9% of the then-outstanding Corebridge Common Stock, provided that, no such repurchase will be permitted if it would result in Argon owning, of record, more than 14.9% of the then-outstanding Corebridge Common Stock and (ii) waives the right of Argon, Blackstone and certain of their affiliates to vote or act by written consent with respect to any shares of Corebridge Common Stock owned by them from time to time.

 

 
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Supplemental Information

 

 

 

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA

 

(in millions)     December 31, 2023  

Investment income earned:

   

Government bonds

    $ 42  

Other bonds (unaffiliated)

      5,217  

Bonds of affiliates

      13  

Preferred stocks (unaffiliated)

      2  

Common stocks (unaffiliated)

      11  

Common stocks of affiliates

      25  

Cash and short-term investments

      57  

Mortgage loans

      1,449  

Real estate

      4  

Contract loans

      78  

Other invested assets

      335  

Derivative instruments

      (283)  

Miscellaneous income

      10  

Gross investment income

    $ 6,960  
   

Real estate owned - book value less encumbrances

    $ 75  

Mortgage loans - book value:

   

Commercial mortgages

    $ 23,562  

Residential mortgages

      5,601  

Mezzanine loans

      844  

Affiliated residential mortgages

      —  

Total mortgage loans

    $ 30,007  

Mortgage loans by standing - book value:

   

Good standing

    $ 29,676  

Good standing with restructured terms

      307  

Interest overdue more than 90 days, not in foreclosure

      17  

Foreclosure in process

      7  

Total mortgage loans

    $ 30,007  
   

Partnerships - statement value

    $ 6,556  

Bonds and stocks of parents, subsidiaries and affiliates - statement value:

   

Bonds

    $ 366  

Common stocks

      73  

Bonds, short-term and cash equivalent bond investments by class and maturity:

   

Bonds, short-term and cash equivalent bond investments by maturity - statement value:

   

Due within one year or less

    $ 5,622  

Over 1 year through 5 years

      29,992  

Over 5 years through 10 years

      29,009  

Over 10 years through 20 years

      20,066  

Over 20 years

      27,574  

Total maturity

    $ 112,263  

Bonds, short-term and cash equivalent bond investments by class - statement value:

   

Class 1

    $ 67,401  

Class 2

      38,494  

Class 3

      3,480  

Class 4

      2,638  

Class 5

      225  

Class 6

      25  

Total by class

    $ 112,263  

Total bonds, short-term and cash equivalent bond investments publicly traded

      52,674  

Total bonds, short-term and cash equivalent bond investments privately traded

      59,590  

Preferred stocks - statement value

    $ 80  

Common stocks - market value

      266  

Short-term investments - book value

      122  

Cash equivalents - book value

      856  

Options, caps and floors owned - statement value

      1,414  

Collar, swap and forward agreements open - statement value

      (487)  

Futures contracts open - current value

      4  

Cash on deposit

      (78)  

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

SUPPLEMENTAL SCHEDULE OF SELECTED FINANCIAL DATA - (Continued)

 

 

 

 (in millions)     December 31, 2023  

Life insurance in-force:

   

Industrial

    $ 696  

Ordinary

      263,929  

Credit

      —  

Group

      3,274  

Amount of accidental death insurance in-force under ordinary policies

      4,467  

Life insurance policies with disability provisions in-force:

   

Industrial

      195  

Ordinary

      37,623  

Group life

      30  

Supplementary contracts in-force:

   

Ordinary - not involving life contingencies:

   

Amount on deposit

      651  

Income payable

      299  

Ordinary - involving life contingencies:

   

Amount on deposit

      270  

Income payable

      113  

Group - not involving life contingencies:

   

Amount on deposit

      1  

Annuities:

   

Ordinary:

   

Immediate - amount of income payable

    $ 1,408  

Deferred, fully paid - account balance

      71,226  

Deferred, not fully paid - account balance

      36,165  

Group:

   

Amount of income payable

      615  

Fully paid - account balance

      630  

Not fully paid - account balance

      15,587  

Accident and health insurance - premiums in-force:

   

Other

    $ 64  

Group

      —  

Credit

      —  

Deposit funds and dividend accumulations:

   

Deposit funds - account balance

    $ 8,907  

Dividend accumulations - account balance

      488  

Claim payments in 2022

   

Group accident & health:

   

2023

    $ —  

2022

      —  

2021

      —  

2020

      —  

2019

      —  

Prior

      166  

Other accident & health:

   

2023

      12  

2022

      (1 ) 

2021

      (80 ) 

2020

      (58 ) 

2019

      (14 ) 

Prior

      427  

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES

DECEMBER 31, 2023

(in millions)

1. The Company’s total admitted assets as of December 31, 2023 are $229.8 billion.

The Company’s total admitted assets, excluding separate accounts, as of December 31, 2023 are $161 billion.

2. Following are the 10 largest exposures to a single issuer/borrower/investment, by investment category, excluding: (i) U.S. Government, U.S. Government agency securities and those U.S. Government money market funds listed in the Appendix to the IAO Practices and Procedures Manual as exempt, (ii) property occupied by the Company, and (iii) policy loans:

 

       
   Issuer    Description of Exposure      Amount     

Percentage   

of Total   

Admitted   
Assets    

a.  Carlyle Group

    OIA    $ 1,513       0.90 % 

b.  Senior Direct Lending Program LLC

    BONDS      908       0.60   

c.  Corebridge Real Estate Investors Inc.

    OIA      769       0.50   

d.  Amazon.com, Inc.

    BONDS      602       0.40   

e.  Duke Energy Corporation

    BONDS      560       0.30   

f.   American Electric Power Company, Inc.

    BONDS      491       0.30   

g.  Exelon Corporation

    BONDS      491       0.30   

h.  Southern Company, The

    BONDS      458       0.30   

i.   Microsoft Corporation

    BONDS      438       0.30   

j.   CVS Health Corporation

    BONDS      429       0.30   

3. The Company’s total admitted assets held in bonds and preferred stocks, by NAIC rating, are:

 

Bonds and Short-Term Investments         Preferred Stocks  
 NAIC Rating    Amount     

Percentage of
Total Admitted

Assets

         NAIC Rating    Amount      Percentage of
Total Admitted
Assets		  

NAIC - 1

    $     67,401        41.90  %      P/RP - 1    $       76        — % 

NAIC - 2

      38,494        23.90       P/RP - 2      4        —  

NAIC - 3

      3,480        2.20       P/RP - 3      —        —  

NAIC - 4

      2,638        1.60       P/RP - 4      —        —  

NAIC - 5

      225        0.10       P/RP - 5      1        —  

NAIC - 6

      25        —         P/RP - 6      —        —  

4.  Assets held in foreign investments:

 

     
      Amount     

Percentage
of Total

Admitted
Assets

  

a.  Total admitted assets held in foreign investments

    $   27,858         17.30  % 

b.  Foreign currency denominated investments

      11,584         7.20  

c.  Insurance liabilities denominated in that same foreign currency

      —         —  

 

5.

Aggregate foreign investment exposure categorized by NAIC sovereign rating:

 

     
      Amount     

Percentage

of Total

Admitted

Assets

  

a.  Countries rated NAIC - 1

    $   25,729         16.00  % 

b.  Countries rated NAIC - 2

      1,471         0.90  

c.  Countries rated NAIC - 3 or below

      657         0.40  

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES (Continued)

DECEMBER 31, 2023

(in millions)

 

6. Two largest foreign investment exposures to a single country, categorized by the country’s NAIC sovereign rating:

 

     
       Amount       Percentage
of Total
Admitted
Assets		  

 a. Countries rated NAIC - 1

      

Country 1: United Kingdom

    $ 6,489        4.00  % 

Country 2: Cayman Islands

      4,755        3.00  

 b. Countries rated NAIC - 2

      

Country 1: Mexico

      467        0.30  

Country 2: Indonesia

      251        0.20  

 c. Countries rated NAIC - 3 or below

      

Country 1: Colombia

      188        0.10  

Country 2: British Virgin Islands

      94        0.10  

7. Aggregate unhedged foreign currency exposure:

 

     
       Amount     

 Percentage

of Total

Admitted

Assets

  

Aggregate unhedged foreign currency exposure

    $ 11,584        7.20  % 

 8.  Aggregate unhedged foreign currency exposure categorized by NAIC sovereign rating:

 

     
       Amount     

 Percentage

of Total

Admitted

Assets

  

 a. Countries rated NAIC - 1

    $ 11,577        7.20  % 

 b. Countries rated NAIC - 2

      5        —  

 c. Countries rated NAIC - 3 or below

      2        —  

9. Two largest unhedged foreign currency exposures to a single country, categorized by the country’s NAIC sovereign rating:

 

     
       Amount     

 Percentage

of Total

Admitted

Assets

  

 a. Countries rated NAIC - 1

      

Country 1: United Kingdom

    $ 4,907        3.00  % 

Country 2: Ireland

      2,270        1.40  

 b. Countries rated NAIC - 2

      

Country 1: Peru

      3        —  

Country 2: Mexico

      2        —  

 c. Countries rated NAIC - 3 or below

      

Country 1: Brazil

      2        —  

Country 2:

      —        —  

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES (Continued)

DECEMBER 31, 2023

(in millions)

 

10. Ten largest non-sovereign (i.e. non-governmental) foreign issues:

 

            NAIC Rating    Amount     

Percentage

of Total

Admitted

Assets

  

a.

    5555233    MORTGAGE LOAN    $   390        0.20  % 

b.

    Granite DEBTCO 9 Limited    MORTGAGE LOAN      314        0.20  

c.

    5555143    MORTGAGE LOAN      268        0.20  

d.

    5555184    MORTGAGE LOAN      255        0.20  

e.

    5555239    MORTGAGE LOAN      254        0.20  

f.

    Silver (BREDS)    Other invested Assest      245        0.20  

g.

    5555187    MORTGAGE LOAN      222        0.10  

h.

    Royal Dutch Shell plc    NAIC 1 - Bonds      221        0.10  

i.

    5555164    MORTGAGE LOAN      220        0.10  

j.

    5555138    MORTGAGE LOAN      210        0.10  

11. Assets held in Canadian investments are less than 2.5% of the reporting entity’s total admitted assets.

12. Assets held in investments with contractual sales restrictions are less than 2.5 percent of the Company’s total admitted assets.

13. The Company’s admitted assets held in the ten largest equity interests (including investments in the shares of mutual funds, preferred stocks, publicly traded equity securities, and other equity securities and excluding money market and bond mutual funds listed in the Appendix to the SVO Practices and Procedures Manual as exempt or Class 1) are:

 

            Amount     

Percentage

of Total

Admitted

Assets

  

a.

    Carlyle Group    $     1,513        0.90  % 

b.

    Corebridge Real Estate Investors Inc.      769        0.50  

c.

    Silver (BREDS)      245        0.20  

d.

    SUNAMERICA INVESTMENT INC.      233        0.10  

e.

    BLACKSTONE GROUP      202        0.10  

f.

    The Spiral      185        0.10  

g.

    GENERAL ATLANTIC      179        0.10  

h.

    TEACHERS INSUR & ANNUITY      142        0.10  

i.

    THOMA BRAVO LLC      138        0.10  

j.

    Think Investments LLC      130        0.10  

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES (Continued)

DECEMBER 31, 2023

(in millions)

 

 14. Assets held in nonaffiliated, privately placed equities:

 

            Amount     

Percentage

of Total
Admitted

Assets

  

Aggregate statement value of investment held in nonaffiliated, privately placed equities:

    $   1,775        1.10  % 

Largest three investments held in nonaffiliated, privately placed equities:

      

a.

    Carlyle Alternative Opportunities Fund L.P.    $ 368        0.20  

b.

    Silver (BREDS)      245        0.20  

c.

    The Spiral      185        0.10  

 

Ten largest fund managers:

 

                  
      Fund Manager    Total
Invested		      Diversified      Non-
diversified		  

a.

    Carlyle Group    $    1,513      $ 1,513      $     —  

b.

    Corebridge Real Estate Investors Inc.      769        —        769  

c.

    Silver (BREDS)      245        —        245  

d.

    SUNAMERICA INVESTMENT INC.      233          233        —  

e.

    BLACKSTONE GROUP      202        202        —  

f.

    The Spiral      185        —        185  

g.

    GENERAL ATLANTIC      179        179        —  

h.

    TEACHERS INSUR & ANNUITY      142        142        —  

i.

    THOMA BRAVO LLC      138        138        —  

j.

    Think Investments LLC      130        130        —  

15. Assets held in general partnership interests are less than 2.5 percent of the Company’s total admitted assets.

16. Mortgage loans reported in Schedule B, include the following ten largest aggregate mortgage interests. The aggregate mortgage interest represents the combined value of all mortgages secured by the same property or same group of properties:

 

       
            Amount     

 Percentage

of Total

Admitted

Assets

  

a.

    COMMERCIAL MORTGAGE LOAN, Loan No. 5555233, ESP    $ 390        0.20  % 

b.

    COMMERCIAL MORTGAGE LOAN, Loan No. 8002341, NY      366        0.20  

c.

    COMMERCIAL MORTGAGE LOAN, Loan No. 8002930, CA      272        0.20  

d.

    COMMERCIAL MORTGAGE LOAN, Loan No. 5555143, GBR      268        0.20  

e.

    COMMERCIAL MORTGAGE LOAN, Loan No. 8002711, NJ      265        0.20  

f.

    COMMERCIAL MORTGAGE LOAN, Loan No. 5555184, GBR      255        0.20  

g.

    COMMERCIAL MORTGAGE LOAN, Loan No. 5555239, ESP      254        0.20  

h.

    COMMERCIAL MORTGAGE LOAN, Loan No. 8002917, NY      227        0.10  

i.

    COMMERCIAL MORTGAGE LOAN, Loan No. 5555187, GBR      222        0.10  

j.

    COMMERCIAL MORTGAGE LOAN, Loan No. 5555164, GBR      220        0.10  

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES (Continued)

DECEMBER 31, 2023

(in millions)

 

Amount and percentage of the reporting entity’s total admitted assets held in the following categories of mortgage loans:

 

     
        Amount      Percentage
of Total
Admitted
Assets		  

a.  Construction loans

    $ 1,615        1.00  % 

b.  Mortgage loans over 90 days past due

      18        —  

c.  Mortgage loans in the process of foreclosure

      7        —  

d.  Mortgage loans foreclosed

      —        —  

e.  Restructured mortgage loans

      307        0.20  

17. Aggregate mortgage loans having the following loan-to-value ratios as determined from the most current appraisal as of the annual statement date:

 

          Residential             Commercial             Agricultural      
 Loan-to-Value      Amount      Percentage
of Total
Admitted
Assets		       Amount      Percentage
of Total
Admitted
Assets		       Amount      Percentage
of Total
Admitted
Assets		  

a.  above 95%

    $ 1        —  %    $ 609        0.40  %    $ —        —  % 

b.  91% to 95%

      1        —       246        0.20       —        —  

c.  81% to 90%

      264        0.20       1,133        0.70       —        —  

d.  71% to 80%

      1,645        1.00       2,751        1.70       —        —  

e.  below 70%

      3,689        2.30       19,314        12.00       —        —  

18. Assets held in each of the five largest investments in one parcel or group of contiguous parcels of real estate reported in Schedule A are less than 2.5 percent of the Company’s total admitted assets.

19. Assets held in mezzanine real estate loans are less than 2.5 percent of the Company’s total admitted assets.

20. The Company’s total admitted assets subject to the following types of agreements as of the following dates:

 

                               Unaudited At End of Each Quarter      
     At Year-End          Quarter      Quarter      Quarter  
        Amount     

Percentage

of Total

Admitted

Assets

             Amount        Amount        Amount  

a.  Securities lending (do not include assets held as collateral

     for such transactions)

    $ —        —  %       $ —      $ —      $ —  

b.  Repurchase agreements

      2,036        1.30          2,436        120        39  

c.  Reverse repurchase agreements

      —        —          —        —        —  

d.  Dollar repurchase agreements

      —        —          —        —        —  

e.  Dollar reverse repurchase agreements

      —        —            —        —        —  

 

 
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AMERICAN GENERAL LIFE INSURANCE COMPANY

SUPPLEMENTAL INVESTMENT RISKS INTERROGATORIES (Continued)

DECEMBER 31, 2023

(in millions)

 

21. The Company’s potential exposure to warrants not attached to other financial instruments, options, caps, and floors:

 

      Owned           Written  
         Amount      Percentage
of Total
Admitted
Assets		              Amount      Percentage
of Total
Admitted
Assets		  

a. Hedging

    $ —        —  %       $ —        —  % 

b. Income generation

      —        —          —        —  

c. Other

      —        —            —        —  

22. The Company’s potential exposure (defined as the amount determined in accordance with the NAIC Annual Statement Instructions) for collars, swaps, and forwards as of the following dates:

 

                 
    

 

     Unaudited At End of Each Quarter  
     At Year-End     1st Quarter      2nd Quarter      3rd Quarter  
        Amount      Percentage
of Total
Admitted
Assets		       Amount        Amount        Amount  

a. Hedging

    $ 752        0.50 %    $ 715      $ 718      $ 806  

b. Income generation

      —        —       —        —        —  

c. Replications

      —        —       —        —        —  

d. Other

      —        —       —        —        —  

 

23. The Company’s potential exposure (defined as the amount determined in accordance with the NAIC Annual Statement Instructions) for futures contracts as of the following dates:

 

 

              
     

 

     Unaudited At End of Each Quarter  
     At Year-End     1st Quarter      2nd Quarter      3rd Quarter  
        Amount      Percentage
of Total
Admitted
Assets		       Amount        Amount        Amount  

a. Hedging

    $ 77        — %    $ 160      $ 142      $ 143  

b. Income generation

      —        —       —        —        —  

c. Replications

      —        —       —        —        —  

d. Other

      —        —       —        —        —  

 

 
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Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

SUPPLEMENTAL SUMMARY INVESTMENT SCHEDULE

DECEMBER 31, 2023

 

(in millions)    Gross Investment
Holdings		     Admitted Assets as Reported in the Annual Statement  
Investment Categories    Amount     Percentage     Amount     Securities
Lending
Reinvested
Collateral
Amount		      Total
Amount		     Percentage  

Bonds:

              

U.S. governments

    $ 1,321       0.9     $ 1,321     $ —      $ 1,321       0.9  % 

All other governments

      2,041       1.3       2,041     $ —        2,041       1.3  

U.S. states, territories and possessions, etc. guaranteed

      239       0.2       239     $ —        239       0.2  

U.S. political subdivisions of states, territories, and possessions, guaranteed

      210       0.1       210     $ —        210       0.1  

U.S. special revenue and special assessment obligations, etc. non-guaranteed

      5,392       3.5       5,392     $ —        5,392       3.5  

Industrial and miscellaneous

      98,249       63.5       98,249     $ —        98,249       63.5  

Hybrid securities

      377       0.2       377     $ —        377       0.2  

Parent, subsidiaries and affiliates

      366       0.2       366     $ —        366       0.2  

Unaffiliated Bank loans

      3,937       2.6       3,937     $ —        3,937       2.6  

Total long-term bonds

    $ 112,132       72.5     $ 112,132     $ —      $ 112,132       72.5  

Preferred stocks:

              

Industrial and miscellaneous (Unaffiliated)

    $ 80       0.1     $ 80     $ —      $ 80       0.1  

Parent, subsidiaries and affiliates

      —       —       —     $ —        —       —  

Total preferred stocks

    $ 80       0.1     $ 80     $ —      $ 80       0.1  

Common stocks:

              

Industrial and miscellaneous Publicly traded (Unaffiliated)

    $ —       —     $ —     $ —      $ —       —  

Industrial and miscellaneous Other (Unaffiliated)

      196       0.1       196     $ —        196       0.1  

Parent, subsidiaries and affiliates Publicly traded

      1       —       1     $ —        1       —  

Parent, subsidiaries and affiliates Other

      72       0.1       68     $ —        68       —  

Mutual funds

      1       —       1     $ —        1       —  

Total common stocks

    $ 270       0.2     $ 266     $ —      $ 266       0.1  

Mortgage loans:

              

Farm mortgages

    $ —       —     $ —     $ —      $ —       —  

Residential mortgages

      5,601       3.6       5,601     $ —        5,601       3.6  

Commercial mortgages

      23,562       15.2       23,562     $ —        23,562       15.2  

Mezzanine real estate loans

      844       0.6       844     $ —        844       0.6  

Total valuation allowance

      (355 )      (0.2 )      (355 )    $ —        (355 )      (0.2 ) 

Total mortgage loans

    $ 29,652       19.2     $ 29,652     $ —      $ 29,652       19.2  

Real estate:

              

Properties occupied by company

    $ —       —     $ —     $ —      $ —       —  

Properties held for production of income

      73       0.1       73     $ —        73       0.1  

Properties held for sale

      2       —       2     $ —        2       —  

Total real estate

    $ 75       0.1     $ 75     $ —      $ 75       0.1  

Cash, cash equivalents and short-term investments:

              

Cash

    $ (78 )      (0.1 )    $ (78 )    $ —      $ (78 )      (0.1 ) 

Cash equivalents

      856       0.6       856     $ —        856       0.6  

Short-term investments

      122       0.1       122     $ —        122       0.1  

Total cash, cash equivalents and short-term investments

      900       0.6       900     $ —        900       0.6  

Contract loans

      1,174       0.8       1,157     $ —        1,157       0.8  

Derivatives

      1,884       1.2       1,884     $ —        1,884       1.2  

Other invested assets

      6,457       4.2       6,456     $ —        6,456       4.2  

Receivables for securities

      100       0.1       100     $ —        100       0.1  

Securities Lending

      —       —       —       XXX        XXX       XXX  

Other invested assets

      1,985       1.3       1,985     $ —        1,985       1.3  

Total invested assets

    $ 154,709       100.0     $ 154,687     $ —      $ 154,687       100  % 

 

 
81

Table of Contents

AMERICAN GENERAL LIFE INSURANCE COMPANY

SUPPLEMENTAL SCHEDULE OF REINSURANCE DISCLOSURES

DECEMBER 31, 2023

 

The following information regarding reinsurance contracts is presented to satisfy the disclosure requirements in SSAP No. 61R, Life, Deposit-Type and Accident and Health Reinsurance, which apply to reinsurance contracts entered into, renewed or amended on or after January 1, 1996.

 

1.

Has the Company reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is subject to Appendix A-791, Life and Health Reinsurance Agreements, and includes a provision that limits the reinsurer’s assumption of significant risks identified in Appendix A-791?

Yes [ ] No [ X ]

If yes, indicate the number of reinsurance contracts to which such provisions apply: __________

If yes, indicate if deposit accounting was applied for all contracts subject to Appendix A-791 that limit significant risks.

Yes [ ] No [ ] N/A [ X ]

 

2.

Has the Company reinsured any risk with any other entity under a reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) that is not subject to Appendix A-791, for which reinsurance accounting was applied and includes a provision that limits the reinsurer’s assumption of risk?

Yes [ ] No [ X ]

If yes, indicate the number of reinsurance contracts to which such provisions apply: __________

If yes, indicate whether the reinsurance credit was reduced for the risk-limiting features.

Yes [ ] No [ ] N/A [ X ]

 

3.

Does the Company have any reinsurance contracts (other than reinsurance contracts with a federal or state facility) that contain one or more of the following features which may result in delays in payment in form or in fact:

 

  (a)

Provisions that permit the reporting of losses to be made less frequently than quarterly;

 

  (b)

Provisions that permit settlements to be made less frequently than quarterly;

 

  (c)

Provisions that permit payments due from the reinsurer to not be made in cash within ninety (90) days of the settlement date (unless there is no activity during the period); or

 

  (d)

The existence of payment schedules, accumulating retentions from multiple years, or any features inherently designed to delay timing of the reimbursement to the ceding entity.

Yes [ ] No [ X ]

 

4.

Has the Company reflected reinsurance accounting credit for any contracts that are not subject to Appendix A-791 and not yearly renewable term reinsurance, which meet the risk transfer requirements of SSAP No. 61R?

 

       
Type of contract:     Response:      

Identify reinsurance

contract(s):

    Has the insured event(s)
triggering contract coverage
been recognized?
       

Assumption reinsurance –

new for the reporting period

   Yes [ ] No [ X ]         N/A
       
Non-proportional reinsurance, which does not result in significant surplus relief   Yes [ ] No [ X ]         N/A

 

 
82

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AMERICAN GENERAL LIFE INSURANCE COMPANY

SUPPLEMENTAL SCHEDULE OF REINSURANCE DISCLOSURES - (Continued)

DECEMBER 31, 2023

 

5.  

Has the Company ceded any risk, which is not subject to Appendix A-791 and not yearly renewable term reinsurance, under any reinsurance contract (or multiple contracts with the same reinsurer or its affiliates) during the period covered by the financial statements, and either:

 

(a) Accounted for that contract as reinsurance under statutory accounting principles (SAP) and as a deposit under generally accepted accounting principles (GAAP); or

 

Yes [ ] No [ X ] N/A [ ]

 

(b) Accounted for that contract as reinsurance under GAAP and as a deposit under SAP?

 

Yes [ ] No [ X ] N/A [ ]

 

If the answer to item (a) or item (b) is yes, include relevant information regarding GAAP to SAP differences from the accounting policy footnote to the audited statutory-basis financial statements to explain why the contract(s) is treated differently for GAAP and SAP below:

 

 

  

     

 

 
83

Table of Contents

 

American Home Assurance Company

An AIG Company

NAIC Code: 19380

Statutory Basis Financial Statements

As of December 31, 2023 and 2022

and for the years ended December 31, 2023, 2022 and 2021

 

LOGO

Table of Contents

AMERICAN HOME ASSURANCE COMPANY

Statutory Basis Financial Statements

As of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021

TABLE OF CONTENTS

 

 

Report of Independent Auditors

    3
 

Statements of Admitted Assets

    5
 

Statements of Liabilities, Capital and Surplus

    6
 

Statements of Operations and Changes in Capital and Surplus

    7
 

Statements of Cash Flows

    8

Note 1

  

Organization and Summary of Significant Statutory Basis Accounting Policies

   9

Note 2

  

Accounting Adjustments to Statutory Basis Financial Statements

    21

Note 3

  

Investments

    23

Note 4

  

Fair Value of Financial Instruments

    27

Note 5

  

Reserves for Losses and Loss Adjustment Expenses

    29

Note 6

  

Related Party Transactions

    33

Note 7

  

Reinsurance

    35

Note 8

  

Income Taxes

    38

Note 9

  

Capital and Surplus and Dividend Restrictions

    42

Note 10

  

Contingencies

    43

Note 11

  

Other Significant Matters

    46

Note 12

  

Subsequent Events

    48

Table of Contents

LOGO

Report of Independent Auditors

To the Board of Directors of American Home Assurance Company:

Opinions

We have audited the accompanying statutory basis financial statements of American Home Assurance Company (the “Company”), which comprise the statements of admitted assets, and of liabilities, capital and surplus as of December 31, 2023 and 2022, and the related statements of operations and changes in capital and surplus, and of cash flows for each of the three years in the period ended December 31, 2023, including the related notes (collectively referred to as the “financial statements”).

Unmodified Opinion on Statutory Basis of Accounting

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the admitted assets, liabilities, and capital and surplus of the Company as of December 31, 2023 and 2022, and the results of its operations and changes in capital and surplus, and its cash flows for each of the three years in the period ended December 31, 2023, in accordance with the accounting practices prescribed or permitted by the New York State Department of Financial Services described in Note 1.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the accompanying financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2023 and 2022, or the results of its operations and changes in capital and surplus, or its cash flows for each of the three years in the period ended December 31, 2023.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 1 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the New York State Department of Financial Services, which is a basis of accounting other than accounting principles generally accepted in the United States of America.

The effects on the financial statements of the variances between the statutory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

 

 
PricewaterhouseCoopers LLP, PricewaterhouseCoopers Center, 300 Madison Avenue, New York, NY 10017
  T: (646) 471 3000, F: (813) 286 6000, www.pwc.com/us

Table of Contents

LOGO

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the New York State Department of Financial Services. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date the financial statements are available to be issued.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with US GAAS, we:

 

  ●  

Exercise professional judgment and maintain professional skepticism throughout the audit.

  ●  

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

  ●  

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.

  ●  

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

  ●  

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Emphasis of Matter

As discussed in Notes 1, 6 and 7 to the financial statements, the Company has entered into significant transactions with certain affiliated entities. Our opinion is not modified with respect to this matter.

/s/ PricewaterhouseCoopers LLP

New York, NY

April 23, 2024

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Statements of Admitted Assets

 

    

December 31,

2023

    

December 31,

2022

  

Cash and invested assets:

    

Bonds, primarily at amortized cost (fair value: 2023 - $13,079; 2022 - $13,386)

   $   13,642     $   14,424  

Common stocks, at carrying value (cost: 2023 - $306; 2022 - $250)

     307       244  

Preferred stocks, at carrying value (cost: 2023 - $17; 2022 - $26)

     19       29  

Other invested assets (cost: 2023 - $1,477; 2022 - $1,694)

     1,711       1,981  

Mortgage loans

     1,142       1,244  

Derivative instruments

     23       32  

Short-term investments, at amortized cost (approximates fair value)

     8       141  

Cash and cash equivalents

     433       579  

Receivable for securities sold

     36       31  

Total cash and invested assets

   $ 17,321     $ 18,705  

Investment income due and accrued

   $ 112     $ 101  

Agents’ balances or uncollected premiums:

    

Premiums in course of collection

     1,229       1,288  

Premiums and installments booked but deferred and not yet due

     243       174  

Accrued retrospective premiums

     213       264  

High deductible recoverable on paid losses

     20       21  

Reinsurance recoverable on paid losses

     726       616  

Funds held by or deposited with reinsurers

     219       289  

Net deferred tax assets

     223       346  

Receivables from parent, subsidiaries and affiliates

     473       53  

Other assets

     183       165  

Allowance for uncollectible accounts

     (17 )      (32 ) 

Total admitted assets

   $ 20,945     $ 21,990  

See Notes to Statutory Basis Financial Statements

 

   
5    STATEMENTS OF ADMITTED ASSETS – As of December 31, 2023 and 2022

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions, Except Share Information)

 

 

 

Statements of Liabilities, Capital and Surplus

 

        December 31,  
2023		        December 31,  
2022		  

Liabilities

      

Reserves for losses and loss adjustment expenses

    $ 7,919      $ 8,172  

Unearned premium reserves

      2,422        2,498  

Commissions, premium taxes, and other expenses payable

      111        97  

Reinsurance payable on paid loss and loss adjustment expenses

      496        429  

Current federal and foreign taxes payable to parent

      20        26  

Funds held by company under reinsurance treaties

      1,239        1,419  

Provision for reinsurance

      44        46  

Ceded reinsurance premiums payable, net of ceding commissions

      933        629  

Collateral deposit liability

      262        416  

Payable for securities purchased

      10        49  

Payable to parent, subsidiaries and affiliates

      14        12  

Other liabilities

      364        339  

Total liabilities

    $   13,834      $   14,132  

Capital and Surplus

      

Common capital stock, $20 par value, 1,758,158 shares authorized, 1,367,826 shares issued and outstanding

    $ 27      $ 31  

Capital in excess of par value

      5,783        6,730  

Unassigned surplus

      668        427  

Special surplus funds from reinsurance

      633        670  

Total capital and surplus

    $ 7,111      $ 7,858  

Total liabilities, capital and surplus

    $ 20,945      $ 21,990  

See Notes to Statutory Basis Financial Statements

 

   
 6    STATEMENTS OF LIABILITIES, CAPITAL and SURPLUS - As of December 31, 2023 and 2022

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Statements of Operations and Changes in Capital and Surplus

 

      For the Years Ended December 31,  
      2023     2022     2021  

Statements of Operations

       

Underwriting income:

       

Premiums earned

    $    4,252     $    4,293     $    4,110  

Underwriting deductions:

       

Losses incurred

      2,345       2,529       2,596  

Loss adjustment expenses

      352       258       196  

Other underwriting expenses

      1,425       1,499       1,391  

Total underwriting deductions

      4,122       4,286       4,183  

Net underwriting income (loss)

      130       7       (73 ) 

Investment gain:

       

Net investment income earned

      781       679       806  

Net realized capital (loss) gain (net of capital gains tax expense: 2023 - $(4);
2022 - $39; 2021 - $26)

      (153 )      (176 )      260  
Net investment gain      628       503       1,066  

Net loss from agents’ or premium balances charged-off

      (1 )      (2 )      4  

Other expense

      (19 )      (19 )      (74 ) 

Net Income after capital gains taxes and before federal income taxes

      738       489       923  

Federal and foreign income tax benefit

      16       (24 )      (20 ) 

Net Income

    $ 722     $ 513     $ 943  

Changes in Capital and Surplus

       

Capital and surplus, as of December 31, previous year

    $ 7,858     $ 7,662     $ 6,696  

Adjustment to beginning surplus (Note 2)

      25       (15 )      -  

Capital and surplus, as of January 1,

      7,883       7,647       6,696  

Changes in accounting principles (refer to Note 2)

       

Cumulative effect of changes in accounting principles

      14       -       -  

Other changes in capital and surplus:

       

Net Income

      722       513       943  

Change in net unrealized capital gain (net of capital gain (loss) tax expense (benefit):
2023 - $(7); 2022 - $(12); 2021 - $25

      2       (221 )      52  

Change in net deferred income tax

      (136 )      (125 )      (169 ) 

Change in nonadmitted assets

      2       (48 )      52  

Change in provision for reinsurance

      (7 )      (22 )      1  

Return of capital

      (946 )      -       -  

Change in par value of common stock

      (4 )      -       -  

Dividends to stockholder

      (450 )      -       -  

Foreign exchange translation

      31       114       90  

Change in assumed mortgage guaranty contingency reserve

      (4 )      (6 )      4  

Change in ceded mortgage guaranty contingency reserve

      4       6       (4 ) 

Other surplus adjustments

      -       -       (3 ) 

Total changes in capital and surplus

      (772 )      211       966  

Capital and Surplus, as of December 31,

    $ 7,111     $ 7,858     $ 7,662  

See Notes to Statutory Basis Financial Statements

 

   
 7    STATEMENTS OF OPERATIONS and CHANGES IN CAPITAL AND SURPLUS - for the years ending December 31, 2023, 2022 and 2021

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Statements of Cash Flows

 

      For the Years Ended December 31,  
      2023     2022     2021  

Cash from Operations:

                         

Premiums collected, net of reinsurance

    $    4,589     $    4,178     $    4,239  

Net investment income

      696       588       744  

Miscellaneous income

      26       1       13  

Sub-total

      5,311       4,767       4,996  

Benefit and loss related payments

      2,663       2,481       2,747  

Commission and other expense paid

      1,797       1,844       1,778  

Federal and foreign income taxes recovered

      7       1       (2 ) 

Net cash provided from operations

      844       441       473  

Cash from Investments:

                         

Proceeds from investments sold, matured, or repaid:

       

Bonds

      4,458       2,744       5,415  

Stocks

      55       91       1  

Mortgage loans

      373       669       465  

Other investments

      345       824       1,180  

Total proceeds from investments sold, matured, or repaid

      5,231       4,328       7,061  

Cost of investments acquired:

                         

Bonds

      3,984       3,665       6,223  

Stocks

      119       104       68  

Mortgage loans

      289       55       365  

Other investments

      163       361       869  

Total cost of investments acquired

      4,555       4,185       7,525  

Net cash provided from (used in) investing activities

      676       143       (464 ) 

Cash from Financing and Miscellaneous Sources:

                         

Return of capital

      (946 )      -       -  

Change in par value of common stock

      (4 )      -       -  

Intercompany payments

      (293 )      (574 )      (265 ) 

Dividends to stockholder

      (450 )      -       -  

Net deposit activity on deposit-type contracts and other insurance

      (2 )      (1 )      (10 ) 

Collateral deposit liability receipts

      (154 )      17       147  

Other receipt

      50       67       181  

Net cash provided from (used in) financing and miscellaneous activities

      (1,799 )      (491 )      53  

Net change in cash and short-term investments

      (279 )      93       62  

Cash, cash equivalents, and short-term investments

                         

Beginning of year

      720       627       565  

End of year

    $ 441     $ 720     $ 627  

Refer to Note 11D for description of non-cash items.

       

See Notes to Statutory Basis Financial Statements

 

   
8    STATEMENTS OF CASH FLOW – for the years ended December 31, 2023, 2022 and 2021

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

 1.

Organization and Summary of Significant Statutory Basis Accounting Policies

 

 

 

A.

Basis of Organization and Presentation

 

Organization

 

American Home Assurance Company (“the Company” or “American Home”) is a direct wholly-owned subsidiary of AIG Property Casualty U.S., Inc. (“AIG PC US”), a Delaware corporation, which is in turn owned by AIG Property Casualty Inc. (“AIG PC”), a Delaware corporation. The Company’s ultimate parent is American International Group, Inc. (the “Ultimate Parent” or “AIG”). AIG conducts its property and casualty operations through multiple line companies writing substantially all commercial (casualty, property, specialty and financial liability) and consumer (accident & health and personal lines) insurance both domestically and abroad.

The Company is party to an inter-company pooling agreement (the “Combined Pooling Agreement”), among the twelve companies listed below; collectively named the Combined Pool. The member companies of the Combined Pool, their National Association of Insurance Commissioners (“NAIC”) company codes, inter-company pooling percentages under the Combined Pooling Agreement, and states of domicile, are as follows:

 

Company   

NAIC

  Company  

   

  Pool Participation  

Percentage

  

State of

    Domicile    

National Union *

    19445    35%   Pennsylvania

American Home

    19380    32%   New York

Lexington

    19437    30%   Delaware

C&I

    19410    3%   New York

APCC

    19402    0%   Illinois

ISOP

    19429    0%   Illinois

New Hampshire

    23841    0%   Illinois

Specialty

    26883    0%   Illinois

Assurance

    40258    0%   Illinois

Granite

    23809    0%   Illinois

Illinois National

    23817    0%   Illinois

AIU

    19399    0%   New York

 * Lead Company of the Combined Pool

Refer to Note 6 for additional information on the Combined Pool and effects of the changes in the intercompany pooling arrangements in 2021 (the “2021 Repooling Transaction”). The Company decreased its participation from 35% to 32% as a result of the 2021 Repooling Transaction.

The Company accepts commercial business primarily through a network of independent retail and wholesale brokers and through independent agency networks. In addition, the Company accepts consumer business primarily through agents and brokers, as well as through direct marketing and partner organizations. There were no Managing Agents or Third Party Administrators who placed direct written premium with the Company in an amount exceeding more than 5.0 percent of surplus of the Company for the years ending December 31, 2023, 2022, and 2021.

The Company is diversified in terms of classes of its business, distribution network and geographic locations. The Company has direct written premium concentrations of 5.0 percent or more in the following locations:

 

State / Location    2023      2022      2021  

California

    $ 58      $ 50      $ 57  

Florida

      54        55        69  

United Arab Emirates

      80        83        78  

New York

      46        41        36  

Texas*

            24              37              14  

*Texas was below 5% in 2021.

 

Basis of Presentation

 

The accompanying financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the New York State Department of Financial Services (“NY SAP”). Certain balances relating to prior periods have been reclassified to conform to the current year’s presentation.

Additionally, the financial statements include the Company’s U.S. and foreign operations, along with its Dubai, Caribbean, Jamaica and Argentina branch operations.

 

   
 9    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

The Company’s financial information as of and for the years ended December 31, 2023, 2022 and 2021 have been presented in accordance with the terms of the Combined Pooling Agreement.

 

B.  

Permitted and Prescribed Practices

 

NY SAP recognizes only statutory accounting practices prescribed or permitted by the New York State Department of Financial Services (“NY DFS”) for determining and reporting the financial position and results of operations of an insurance company and for the purpose of determining its solvency under the New York Insurance Code. The NAIC Statutory Accounting Principles included within the Accounting Practices and Procedures Manual (“NAIC SAP”) have been adopted as a component of prescribed practices by the NY DFS. The Superintendent of the NY DFS (the “Superintendent”) has the right to permit other specific practices that differ from prescribed practices.

NY SAP has prescribed the practice of discounting workers’ compensation known case loss reserves on a non-tabular basis. This practice is not prescribed under NAIC SAP.

Accounting practices prescribed by the Insurance Department of the Commonwealth of Pennsylvania (“PA SAP”) provide for the availability of certain offsets in the calculation of the Provision for reinsurance, which offsets are not prescribed under NAIC SAP. The Company applied PA SAP with concurrence from the NY DFS to reflect the transfer of collection risk on certain of the Company’s asbestos related reinsurance recoverable balances, to an authorized third party reinsurer, as another form of collateral acceptable to the Commissioner with respect to the reinsurance recoverable balance from the original reinsurers.

In 2021, the Company received a permitted practice to present the consideration received in relation to loss reserves transferred other than via commutation as part of 2021 Repooling transaction within paid loss rather than as premium written and earned. The classification had no effect on net income or surplus.

The Company applied a permitted practice to account for the retroactive aggregate excess of loss reinsurance arrangement entered into with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway, Inc., (the “ADC”) as prospective reinsurance. However, any gain associated with the ADC has been reported in a segregated surplus account and does not form part of the Company’s Unassigned surplus, subject to the applicable dividend restrictions; such amounts must be restricted in surplus until such time as payments received from NICO exceed premiums paid for the retrocession. Segregated surplus balances were $627, $664 and $685 at December 31, 2023, 2022 and 2021, respectively. The effects of the ADC comprise the majority of total segregated surplus; accordingly, Statutory surplus, NAIC SAP, excluding segregated surplus was $6,285, $7,008, $6,763, at December 31, 2023, 2022 and 2021, respectively. For more information, see Note 7.

The use of the aforementioned permitted and prescribed practices has not affected the Company’s ability to comply with the NY DFS’s risk based capital (“RBC”) and surplus requirements for the 2023, 2022 and 2021 reporting periods.

A reconciliation of the net income (loss) and capital and surplus between NAIC SAP and practices prescribed or permitted by NY SAP is shown below:

 

December 31,    SSAP #    FS Ref       2023     2022     2021

Net Income, NY SAP

          $ 722      $ 513      $ 943   

State prescribed or permitted practices - addition (charge):

             

Change in non-tabular discounting

    65    (a)       15        (27)       49   

Adverse Development Cover

    62R    (a)       -         -         -    

Present the consideration received/paid in relation to the loss reserves within paid losses

    62R    (b)       -         -         -    

Net Income , NAIC SAP

              $ 707      $ 540      $ 894   

Statutory surplus, NY SAP

          $    7,111     $   7,858     $   7,662  
State prescribed or permitted practices - addition (charge):             

Non-tabular discounting

    65    (a)       152        138        165   

Credits for collection risk on certain asbestos reinsurance recoveries

    62R    (c)       40        42        43   

Present the consideration received/paid in relation to the loss reserves within paid losses

    62R    (b)       -         -         -    

Statutory surplus, NAIC SAP

              $ 6,919     $ 7,678     $ 7,454  

 

(a)

Impacts Reserves for losses and loss adjustment expenses within the Statements of Liabilities, Capital and Surplus and Losses incurred within the Statements of Operations and Changes in Capital and Surplus.

(b)

Impacts Losses incurred and Premiums earned within the Statements of Operations and Changes in Capital and Surplus.

(c)

Impacts Provision for reinsurance within the Statements of Liabilities, Capital and Surplus and the change in Provision for reinsurance within the Statements of Operations and Changes in Capital and Surplus.

 

   
 10    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

C.  

Use of Estimates in the Preparation of the Financial Statements

 

The preparation of statutory financial statements in accordance with NY SAP requires the application of accounting policies that often involve a significant degree of judgment. The Company’s accounting policies that are most dependent on the application of estimates and assumptions are considered critical accounting estimates and are related to the determination of:

 

•  

Reserves for losses and loss adjustment expenses (“LAE”) including estimates and recoverability of the related reinsurance assets;

•  

Reinsurance Assets;

•  

Other than temporary impairment (“OTTI”) losses on investments;

•  

Fair value of certain financial assets, impacting those investments measured at fair value in the Statements of Admitted Assets and Liabilities, Capital and Surplus, as well as unrealized gains (losses) included in Capital and Surplus; and

•  

Income tax assets and liabilities, including the recoverability and admissibility of net deferred tax assets and the predictability of future tax operating profitability of the character necessary to realize the net deferred tax asset.

These accounting estimates require the use of assumptions, including some that are highly uncertain at the time of estimation. It is reasonably possible that actual experience may materially differ from the assumptions used and therefore the Company’s statutory financial condition, results of operations and cash flows could be materially affected.

 

D.  

Accounting Policy Differences

 

NAIC SAP is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America (“US GAAP”). NAIC SAP varies from US GAAP in certain significant respects, including:

 

Transactions   NAIC SAP Treatment   US GAAP Treatment

Policy Acquisition Costs

Principally brokerage commissions and premium taxes arising from the issuance of insurance contracts.

  

Costs are immediately expensed and are included in Other Underwriting Expenses, except for reinsurance ceding commissions received in excess of the cost to acquire business which are recognized as a deferred liability and amortized over the period of the reinsurance agreement.

 

  

Costs directly related to the successful acquisition of new or renewal insurance contracts are deferred and amortized over the term of the related insurance coverage.

Unearned Premiums, Unpaid Losses and Loss Expense Liabilities  

Presented net of reinsurance.

  

Presented gross of reinsurance with corresponding reinsurance recoverable assets for ceded unearned premiums and reinsurance recoverable on unpaid losses.

Retroactive reinsurance contracts  

Gains and losses are recognized in earnings immediately and surplus is segregated to the extent pretax gains are recognized. Certain retroactive affiliate or related party reinsurance contracts are accounted for as prospective reinsurance if there is no gain in surplus as a result of the transaction.

  

Gains are deferred and amortized over the settlement period of the ceded claim recoveries. Losses are immediately recognized in the Statements of Operations.

Investments in Bonds held as:

1) available for sale

2) fair value option

  

Investment grade securities (rated by NAIC as class 1 or 2) are carried at amortized cost. Non-investment grade securities (NAIC rated 3 to 6) are carried at the lower of amortized cost or fair value.

  

All available for sale investments are carried at fair value with changes in fair value, net of applicable taxes, reported in accumulated other comprehensive income within shareholder’s equity.

 

Fair value option investments are carried at fair value with changes in fair value, net of applicable projected income taxes, reported in Net Investment Income.

Investments in Common Stocks  

Carried at fair value with unrealized gains and losses reported, net of applicable taxes, in the Statements of Changes in Capital and Surplus.

  

All equity securities that do not follow the equity method of accounting, are measured at fair value with changes in fair value recognized in earnings.

 

 

   
 11    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Transactions

   NAIC SAP Treatment   US GAAP Treatment
Investments in Limited Partnerships, Hedge Funds and Private Equity Interests  

Carried at the underlying US GAAP equity with results from the investment’s operations recorded, net of applicable taxes, as unrealized gains (losses) directly in the Statements of Changes in Capital and Surplus.

  

If aggregate interests allow the holding entity to exercise more than significant influence (typically more than 3%), the investment is recorded as an equity method investment wherein the Company’s pro rata share of income or loss for the period, is recorded as net investment income and adjusted against the carrying value of the asset. Similar equity method investments in investment company entities (e.g.: hedge funds) is adjusted for the Company’s pro rata share of income or loss for the period which is based on the Net Asset Value (“NAV”) with changes in value recorded to Net Investment Income.

 

Where the aggregate interests do not allow the entity to exercise significant influence (typically less than 3%), the investment is recorded as equity investment fair valued through net investment income. Similar equity investment in investment companies (e.g.: hedge funds) are recorded at NAV with changes in value recorded to Net Investment Income.

Investments in Subsidiary, Controlled and Affiliated Entities (SCAs)  

Subsidiaries are not consolidated.

 

The equity investment in SCAs is accounted for

under the equity method and recorded as Common stock investments. Dividends are recorded within Net Investment Income.

  

Consolidation is required when there is a determination that the affiliated entity is a variable interest entity (“VIE”) and the reporting entity has a variable interest and the power to direct the activities of the VIE. The VIE assessment would consider various factors including limited partnership (LP) status and inherent rights of equity investors.

 

Investments in SCAs that are voting interest entities (VOE) with majority voting rights are generally consolidated.

 

Investments in SCAs where the holding entity exercises significant influence (generally ownership of >3% voting interests for LPs and similar entities and between 20 percent and 50 percent for other entities) are recorded at equity value. The change in equity is included within Net Investment Income.

Other-than-temporary impairments  

Bonds, other than loan-backed and structured securities, which are considered to be other-than-temporarily impaired, are written down to fair value with a realized loss recognized in the Statements of Operations.

  

The non-credit portion of impairments relating to debt securities that the entity does not intend to sell and for which it is not more likely than not that the entity will be required to sell before anticipated recovery is recorded in other comprehensive income.

Derivatives  

Embedded derivatives are not separated from the host contract and not accounted for separately as derivative instruments.

  

Contracts may include embedded derivatives that are bifurcated from the host contracts and accounted for separately at fair value.

Statement of Cash Flows  

Statutory Statements of Cash Flows must be presented using the direct method. Changes in cash, cash equivalents, and short-term investments and certain sources of cash are excluded from operational cash flows.

  

The Statements of Cash Flows can be presented using the direct or indirect methods, however are typically presented using the indirect method. Presentation is limited to changes in cash and cash equivalents (short-term investments are excluded).

 

 12    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Transactions

   NAIC SAP Treatment   US GAAP Treatment
Deferred Federal Income Taxes  

Deferred income taxes are established for the temporary differences between tax and book assets and liabilities, subject to limitations on admissibility of tax assets.

 

Changes in deferred income taxes are recorded within capital and surplus and have no impact on the Statements of Operations.

  

The provision for deferred income taxes is recorded as a component of income tax expense, as a component of the Statements of Operations, except for changes associated with items that are included within other comprehensive income where such items are recorded net of applicable income taxes.

Statutory Adjustments

(applied to certain assets including goodwill, furniture and equipment, prepaid expenses, overdue receivable balances and unsecured reinsurance amounts)

  

Certain asset balances designated as nonadmitted, such as some intangible assets and certain investments in affiliated entities are excluded from the Statements of Admitted Assets and are reflected as deductions from capital and surplus.

  

All assets and liabilities are included in the financial statements. Provisions for uncollectible receivables are established as valuation allowances and are recognized as expense within the Statements of Operations.

Stock Repurchase  

When a reporting entity’s stock is acquired and retired the cost of the acquired and retired stock reduces statutory surplus. The capital stock account shall be reduced by the par value of the acquired and retired stock and the paid-in or contributed surplus is reduced by the excess of cost over par value or stated value.

  

The cost of a repurchase of shares in excess of par is allocated between additional paid-in capital and retained earnings or the excess may be charged entirely to retained earnings.

The effects on the financial statements of the variances between NAIC SAP and US GAAP, although not reasonably determinable, are presumed to be material.

 

E.

Significant Statutory Accounting Policies

 

Premiums

 

Premiums for insurance and reinsurance contracts are recorded as gross premiums written as of the effective date of the policy. Premiums are earned primarily on a pro-rata basis over the term of the related insurance coverage. Premiums collected prior to the effective date of the policy are recorded as an advance premium liability and not considered income until due. Extended reporting endorsements are reflected as premiums written and are earned on a pro-rata basis over the stated term of the endorsement unless the term of the endorsement is indefinite, in which case premiums are fully earned at inception of the endorsement along with the recognition of associated loss and LAE.

Unearned premium reserves are established on an individual policy basis, reflecting the terms and conditions of the coverage being provided. Unearned premium reserves represent the portion of premiums written relating to the unexpired terms of coverage as of the date of the financial statements. For policies with coverage periods equal to or greater than thirteen months and generally not subject to cancellation or modification by the Company, premiums are earned using a prescribed percentage of completion method. Additional unearned premium reserves for policies exceeding thirteen months are established as greater of three prescribed tests.

Reinsurance premiums are typically earned over the same period as the underlying policies, or risks, covered by the contracts. As a result, the earnings pattern of a reinsurance contract generally written for a 12 month term may extend up to 24 months, reflecting the inception dates of the underlying attaching policies throughout the 12 month period of the reinsurance contract. Reinsurance premiums ceded are recognized as a reduction in revenues over the period reinsurance coverage is provided.

Insurance premiums billed and outstanding for 90 days or more are nonadmitted and charged against Unassigned funds (surplus).

Premiums for retrospectively rated contracts are initially recorded based on the expected loss experience and are earned on a pro-rata basis over the term of the related insurance coverage. Additional or returned premium is recorded if the estimated loss experience differs from the initial estimate and is immediately recognized in earned premium. The Company records accrued retrospectively rated premiums as written premiums. Adjustments to premiums for changes in the level of exposure to insurance risk are generally determined based upon audits conducted after the policy expiration date.

 

 13    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Gross written premiums net of ceded written premiums (“Net written premiums”) that were subject to retrospective rating features as of December 31, 2023, 2022 and 2021 were as follows:

 

Years ended December 31,       2023            2022            2021     

Net written premiums subject to retrospectively rated contracts

    $ 40      $ 45      $ 49  

Percentage of total net written premiums

      0.9%        1.1 %        1.2 %  

As of December 31, 2023 and 2022, the admitted portion of accrued premiums related to the Company’s retrospectively rated contracts were $213 and $264, respectively, which will be billed in future periods based primarily on the payment of the underlying expected losses and LAE. Unsecured amounts associated with these accrued retrospective premiums were $29 and $28 as of December 31, 2023 and 2022, respectively. Ten percent of the amount of accrued retrospective premiums receivable not offset by retrospective return premiums or other liabilities to the same party, other than loss and LAE reserves, or collateral (collectively referred to as the unsecured amount) have been nonadmitted in the amount of $4 and $4 as of December 31, 2023 and 2022, respectively.

High Deductible

 

 

The Company establishes loss reserves for high deductible policies net of the insured’s contractual deductible (such deductibles are referred to as “reserve credits”). The Company establishes a nonadmitted asset for ten percent of paid losses recoverable in excess of collateral held on an individual insured basis, or for one hundred percent of paid losses recoverable where no collateral is held and amounts are outstanding for more than ninety days. Additionally, the Company establishes an allowance for doubtful accounts for such paid losses recoverable in excess of collateral and after nonadmitted assets. Similarly, the Company does not recognize reserve credit offsets to its estimate of loss reserves where such credits are deemed uncollectible, as the Company ultimately bears credit risk on the underlying policies’ insurance obligations.

The following table shows the counterparty exposure on unpaid claims and billed recoverable on paid claims for high deductibles by line of business as of December 31, 2023 and 2022:

 

December 31, 2023     Gross Loss Reserves      

 Reserve Credits on 

Unpaid Claims

     

 Recoverable on Paid 

Claims

         Total     

Auto Liability

    $ 545      $ 467      $ 3      $ 470   

General Liabilities

      533        498        3        501   

Workers Compensation

      3,373        2,868        16        2,884   

Total

    $ 4,451      $ 3,833      $ 22      $ 3,855   

As of December 31, 2023, both on-balance sheet and off-balance sheet collateral pledged to the Company related to deductible and paid recoverables was $117 and $2,674, respectively. Unsecured high deductible amounts related to unpaid claims and for paid recoverables for 2023 were $1,063, or 28% of the total high deductible. Additionally, as of December 31, 2023, the Company had recoverables on paid claims greater than 90 days overdue of $9, of which $2 have been nonadmitted.

 

December 31, 2022     Gross Loss Reserves*      

 Reserve Credits on 

Unpaid Claims

     

 Recoverable on Paid 

Claims

         Total     

Auto Liability

    $ 543      $ 469      $ 4      $ 473   

General Liabilities

      519        485        3        488   

Workers Compensation

      3,357        2,901        18        2,919   

Total

    $ 4,419      $ 3,855      $ 25      $ 3,880   

*In the prior year statutory basis financial statements, Gross Loss Reserves as disclosed represented loss reserves within the insured’s contractual layer and were stated as such. To conform to the current year presentation, the December 31, 2022 Gross Loss Reserves include both the Company’s layer as well as the insured’s contractual layer.

As of December 31, 2022, both on-balance sheet and off-balance sheet collateral pledged to the Company related to deductible and paid recoverables was $151 and $2,622, respectively. Unsecured high deductible amounts related to unpaid claims and for paid recoverables for 2022 were $1,107, or 28.52% of the total high deductible. Additionally, as of December 31, 2022, the Company had recoverables on paid claims greater than 90 days overdue of $11, of which $4 have been nonadmitted.

 

   
 14    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

The following table shows the deductible amounts for the highest ten unsecured high deductible policies as of December 31, 2023 and 2022:

 

Counterparty*    Unsecured High Deductible Amounts  
December 31,    2023      2022  

Counterparty 1

    $       112      $       149  

Counterparty 2

      83        126  

Counterparty 3

      77        83  

Counterparty 4

      58        70  

Counterparty 5

      38        44  

Counterparty 6

      37        33  

Counterparty 7

      30        29  

Counterparty 8

      25        27  

Counterparty 9

      23        27  

Counterparty 10

      16        20  

*Actual counterparty is not named and may vary year over year. Additionally, a group of entities under common control is regarded as a single counterparty.

Deposit Accounting

 

 

Direct insurance transactions where management determines there is insufficient insurance risk transfer are recorded as deposits unless the policy was issued (i) in respect of the insured’s requirement for evidence of coverage pursuant to applicable statutes (insurance statutes or otherwise), contractual terms or normal business practices, (ii) in respect of an excess insurer’s requirement for an underlying primary insurance policy in lieu of self-insurance, or (iii) in compliance with filed forms, rates and/or rating plans.

Assumed and ceded reinsurance contracts, which do not transfer a sufficient amount of insurance risk are recorded as deposits with the net consideration paid or received recognized as a deposit asset or liability, respectively. Deposit assets are admitted if (i) the assuming company is licensed, accredited or qualified by the PA DOI, or (ii) the collateral (i.e., funds withheld, letters of credit or trusts) provided by the reinsurer meets all the requirements of the NY SAP, as applicable. The deposit asset or liability is adjusted by calculating the effective yield on the deposit to reflect the actual payments made or received to date and expected future payments with a corresponding credit or charge to Other Income (Expense) in the Statements of Operations.

Deposit assets are recorded to Other assets within the Statements of Admitted Assets, refer to Note 11A. Deposit liabilities are recorded to Other liabilities within the Statements of Liabilities, Capital and Surplus, refer to Note 11B.

Premium Deficiency

 

 

The Company periodically reviews its expected ultimate losses with respect to its unearned premium reserves. A premium deficiency loss and related liability are established if the unearned premium reserves and related future investment income are collectively not sufficient to cover the expected ultimate loss projection. For purposes of premium deficiency tests, contracts are grouped in a manner consistent with how policies are marketed, serviced, and measured for the profitability of such contracts. As of December 31, 2023 and 2022, the Company did not incur any premium deficiency losses.

Retroactive Reinsurance

 

 

Reinsurance transactions involving the transfer of loss and LAE reserves associated with loss events that occurred prior to the effective date of the transfer are recorded as retroactive reinsurance and reported separately from Reserves for losses and loss adjustment expenses in the Statements of Liabilities, Capital and Surplus. Initial pre-tax gains or losses are recorded in Retroactive reinsurance gain within the Statements of Operations and Changes in Capital and Surplus with surplus gains recorded as Special surplus funds from reinsurance, which is a component of Capital and Surplus that is restricted from dividend payment. Amounts recorded in Special surplus funds from reinsurance are considered to be earned surplus (i.e., transferred to Unassigned surplus) only when, and to the extent that, cash recoveries from the assuming entity exceed the consideration paid by the ceding entity. Special surplus funds from retroactive reinsurance are maintained separately for each respective retroactive reinsurance agreement; Special surplus funds from retroactive reinsurance account write-in entry on the balance sheet is adjusted, upward or downward, to reflect any subsequent increase or reduction in reserves ceded. The reduction in the special surplus funds is limited to the lesser of amounts recovered by the Company in excess of consideration paid or the surplus gain in relation to such agreement.

To the extent that the transfer of loss and LAE reserves associated with loss events that occurred prior to the effective date of the transfer is between affiliated entities and neither entity records a gain or loss in surplus, the transaction qualifies as an exception in the NAIC SAP accounting guidance and is accounted for as prospective reinsurance.

 

   
 15    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Insurance Related Acquisition Costs

 

 

Commissions, premium taxes, and certain underwriting costs are expensed as incurred and are included in Other underwriting expenses. The Company records an unearned ceding commission accrual equal to the excess of the ceding commissions received from reinsurers compared to the anticipated acquisition cost of the business ceded. This amount is amortized as an increase to income over the effective period of the reinsurance agreement in proportion to the amount of insurance coverage provided.

Provisions for Allowances and Unauthorized or Overdue Reinsurance

 

 

The recoverability of certain assets, including insurance receivables with counterparties, is reviewed periodically by management. A minimum reserve, as required under the NAIC Annual Statement Instructions for Property and Casualty Companies for Schedule F–Provision for Overdue Reinsurance for uncollectible reinsurance is recorded with an additional reserve required if an entity’s experience indicates that a higher amount should be provided. The minimum reserve is recorded as a liability and the change between years is recorded as a gain or loss directly to Unassigned fund (surplus) in the Statement of Liabilities, Capital and Surplus. Any reserve over the minimum amount is recorded on the statement of operations by reversing the accounts previously utilized to establish the reinsurance recoverable. Various factors are taken into consideration when assessing the recoverability of these asset balances including: the age of the related amounts due and the nature of the unpaid balance; disputed balances, historical recovery rates and any significant decline in the credit standing of the counterparty. PA SAP is applied in the determination of the Company’s Provision for reinsurance with concurrence from the NY DFS.

Reserves for Losses and Loss Adjustment Expenses

 

 

Reserves for case IBNR and LAE losses are determined on the basis of actuarial specialists’ evaluations and other estimates, including historical loss experience. The methods of making such estimates and for establishing the resulting reserves are reviewed and updated based on available information, and any resulting adjustments are recorded in the current period. Accordingly, newly established reserves for losses and LAE, or subsequent changes, are charged to income as incurred. In the event of loss recoveries through reinsurance agreements, loss and LAE reserves are reported net of reinsurance amounts recoverable for unpaid losses and LAE. Losses and LAE ceded through reinsurance are netted against losses and LAE incurred. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsurance policy based upon the terms of the underlying contract. See Note 5 for further discussion of policies and methodologies for estimating the liabilities and losses.

Workers’ compensation reserves are discounted in accordance with NY DFS statutes; see Note 5 for further details.

Salvage and subrogation recoverables are estimated using past experience adjusted for current trends, and any other factors that would modify past experience. Estimated salvage and subrogation recoveries (net of associated expenses) are deducted from the liability for unpaid claims or losses.

Structured Settlements

 

 

In the ordinary course of business, the Company enters into structured settlements to settle certain claims. Structured settlements involve the purchase of an annuity to fund future claim obligations. In the event the life insurers providing the annuity, on certain structured settlements, are not able to meet their obligations, the Company would be liable for the payments of benefits. As of December 31, 2023, the Company has not incurred a loss and there has been no default by any of the life insurers included in the transactions. Management believes that based on the financial strength of the life insurers involved in these structured settlements (mostly affiliates) the likelihood of a loss is remote.

The estimated loss reserves eliminated by such structured settlement annuities and the unrecorded loss contingencies as of December 31, 2023 and 2022 were $1,082 and $1,104, respectively.

As of December 31, 2023, the Company had annuities with aggregate statement values in excess of one percent of its policyholders’ surplus with life insurer affiliates as follows:

 

Life Insurance Company    State of Domicile   

  Licensed in  

New York

     Statement Value   

American General Life Insurance Company

    Texas    No    $ 128     

American General Life Insurance Company of Delaware

    Delaware    No      212     

The United State Life Insurance Company in the City of New York

    New York    Yes      698     

 

   
 16    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Fair Value of Financial Instruments

 

 

The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions.

Assets and liabilities recorded at fair value are measured and classified in accordance with a fair value hierarchy consisting of three ‘levels’ based upon the observability of inputs available in the marketplace as discussed below:

 

•  

Level 1: Fair value measurements that are based upon 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. The quoted price for such instruments is not subject to adjustment.

•  

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 as to 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.

The Company’s policy is to recognize transfers in and out at the end of the reporting period, consistent with the date of the determination of fair value (See Note 4 for the balance and activity of financial instruments). The valuation methods and assumptions used in estimating the fair values of financial instruments are as follows:

 

•  

The fair values of bonds, mortgage loans, unaffiliated common stocks and preferred stocks are based on fair values that reflect the price at which a security would sell in an arm’s length transaction between a willing buyer and seller. As such, sources of valuation include third party pricing sources, stock exchanges, brokers or custodians or the NAIC Capital Markets and Investment Analysis Office (“NAIC IAO”).

•  

The fair value of derivatives is determined using quoted prices in active markets and other market evidence whenever possible, including market-based updates, broker or dealer quotations or alternative pricing sources.

•  

The carrying value of all other financial instruments approximates fair value due to the short term nature.

Cash Equivalents and Short-Term Investments

 

 

Cash equivalents are short-term, highly liquid investments, with original maturities of three months or less, that are both; (a) readily convertible to known amounts of cash; and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Highly liquid debt securities with maturities of greater than three months but less than twelve months from the date of purchase are classified as short-term investments. Short-term investments are carried at amortized cost which approximates fair value.

Bonds and Loan Backed and Structured Securities (excluding non-rated residual tranches or interests)

 

 

Bonds include any securities representing a creditor relationship, whereby there is a fixed schedule for one or more future payments such as US government agency securities, municipal securities, corporate and convertible bonds, and fixed income instruments. Loan-backed and structured securities (“LBaSS”) include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”), asset-backed securities (“ABS”), pass-through securities, lease-backed securities, equipment trust certificates, loan-backed securities issued by special purpose corporations or trusts, and securities where there is not direct recourse to the issuer.

Bonds and LBaSS with an NAIC IAO designation of “1” or “2” (considered to be investment grade) are carried at amortized cost. Bonds and LBaSS with an NAIC designation of “3”, “4”, “5”, “5GI”, “6” or “6*” (considered to be non-investment grade) are carried at the lower of amortized cost or fair value. LBaSS fair values are primarily determined using independent pricing services and broker quotes. Bonds and LBaSS that have not been filed with the NAIC IAO, and have not received a designation in over a year, are assigned a 5GI or 6* designation depending on if the obligor is current on contracted principal and interest. Bond and LBaSS securities are assigned a 5GI designation when the following conditions are met: a) the documentation required for a full credit analysis did not exist, b) the issuer/obligor has made all contractual interest and principal payments, and c) an expectation of repayment of interest and principal exists. Amortization of premium or discount on bonds and LBaSS is calculated using the effective yield method.

 

 17    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Additionally, mortgage-backed securities (“MBS”) and ABS prepayment assumptions are obtained from an outside vendor or internal estimates. The retrospective adjustment method is used to account for the effect of unscheduled payments affecting high credit quality securities, while securities with less than high credit quality and securities for which the collection of all contractual cash flows is not probable are both accounted for using the prospective adjustment method.

Non-rated residual tranches or interests

 

 

Non-rated residual tranches or interests are carried at the lower of cost or fair value. Changes in carrying value are record as Unrealized gains or (losses) in the Statement of Changes in Capital and Surplus.

Mortgage Loans

 

 

Mortgage loans on real estate are carried at unpaid principal balances, net of unamortized premiums, discounts and impairments. Pre-payments of principal are recorded as a reduction in the mortgage loan balance. If a mortgage loan provides for a prepayment penalty or acceleration fee in the event the loan is liquidated prior to its scheduled termination date, such fees are reported as investment income when received. Interest income includes interest collected, the change in interest income due and accrued, the change in unearned interest income, and the amortization of premiums, discounts, and deferred fees.

Impaired loans are identified by management as loans in which it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. The Company accrues income on impaired loans to the extent it is deemed collectible and the loan continues to perform under its original or restructured contractual terms. Non-performing loan interest income that is delinquent more than 90 days is generally recognized on a cash basis.

Mortgage loans are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on statistical models primarily driven by past due status, debt service coverage, loan-to-value ratio, property occupancy, profile of the borrower and of the major property tenants, and economic trends in the market where the property is located. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance.

Preferred Stocks

 

 

Perpetual preferred stocks with an NAIC rating of “P1” or “P2”, having characteristics of equity securities are carried at fair value. Redeemable preferred stocks with an NAIC rating of “RP1” or “RP2”, which have characteristics of debt securities, are carried at book value. All preferred stocks with an NAIC rating of “3” through “6” are carried at the lower of book or fair value.

Unaffiliated Common Stock Securities

 

 

Unaffiliated common stock investments are carried at fair value with changes in fair value recorded as Unrealized gains or (losses) in Unassigned funds (surplus), or as realized losses in the event a decline in value is determined to be other than temporary. For FHLB capital stock, which is only redeemable at par, the fair value shall be presumed to be par, unless considered other-than-temporarily impaired.

Investments in subsidiaries and affiliated companies

 

 

Investments in non-publicly traded affiliates are recorded based on the underlying equity of the respective entity’s financial statements as presented on a basis consistent with the nature of the affiliates’ operations (including any nonadmitted amounts). The Company’s share of undistributed earnings and losses of affiliates is recorded as unrealized gains (losses) in Unassigned surplus.

Investments in joint ventures, partnerships and limited liability companies

 

 

Other invested assets include joint ventures and partnerships and are accounted for under the equity method, based on the most recent financial statements of the entity. Changes in carrying value are recorded as unrealized gains (losses). Additionally, other invested assets include investments in collateralized loans that are recorded at the lower of amortized cost and the fair value of the underlying collateral. Changes in carrying value resulting from adjustments where the fair value is less than amortized cost are recorded as unrealized gains (losses) in Unassigned surplus, while changes resulting from amortization are recorded as Net investment income.

 

 18    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Derivatives

 

 

Derivative financial instruments are accounted for at fair value using quoted prices in active markets and other market evidence whenever possible, including market-based inputs to valuation models, broker or dealer quotations or alternative pricing sources, reduced by the amount of collateral held or posted by the Company with respect to the derivative position. Changes in carrying value are recorded as unrealized gains (losses) in Unassigned surplus.

Net investment income and gain/loss

 

 

Investment income is recorded as earned and includes interest, dividends and earnings from subsidiaries, loans and joint ventures. Realized gains or losses on the disposition or impairment of investments are determined on the basis of specific identification.

Investment income due and accrued is assessed for collectability. The Company records a valuation allowance on investment income receivable when it is probable that an amount is uncollectible by recording a charge against investment income in the period such determination is made. Any amounts receivable over 90 days past due, or 180 days past due for mortgage loans, that do not have a valuation allowance are nonadmitted by the Company.

Evaluating Investments for Other-Than-Temporary Impairment

 

 

If a bond is determined to have an OTTI in value the cost basis is written down to fair value as its new cost basis, with the corresponding charge to Net realized capital gains (losses) as a realized loss.

For bonds, other than loan-backed and structured securities, an OTTI shall be considered to have occurred if it is probable that the Company will not be able to collect all amounts due under the original contractual terms.

For loan-backed and structured securities, an OTTI shall be considered to have occurred if the fair value of a security is below its amortized cost and management intends to sell or does not have the ability and intent to retain the security until recovery of the amortized cost (i.e., intent based impairment). When assessing the intent to sell a security, management evaluates relevant facts and circumstances including, but not limited to, decisions to rebalance the investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing.

In general, a security is considered for OTTI if it meets any of the following criteria:

 

•  

The Company may not realize a full recovery on their investment based on lack of ability or intent to hold a security to recovery;

•  

Fundamental credit risk of the issuer exists; or

•  

Other qualitative/quantitative factors exist indicating an OTTI has occurred.

When a credit-related OTTI is present, the amount of OTTI recognized as a realized capital loss is equal to the difference between the investment’s amortized cost basis and the present value of cash flows expected to be collected regardless of management’s ability or intent to hold the security.

Common and preferred stock investments whose fair value is less than their carrying value or is at a significant discount to acquisition value are considered to be potentially impaired. For securities with unrealized losses, an analysis is performed. Factors include:

 

•  

If management intends to sell a security that is in an unrealized loss position then an OTTI loss is considered to have occurred;

•  

If the investments are trading at a significant (25 percent or more) discount to par, amortized cost (if lower) or cost for an extended period of time based on facts and circumstances of the investment; or

•  

If a discrete credit event occurs resulting in: (i) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under bankruptcy law or any similar laws intended for court supervised reorganization of insolvent enterprises; or, (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than par value of their claims; or

•  

If there are other factors precluding a full recovery of the investment.

Limited partnership investments whose fair value is less than its book value with a significant unrealized loss are considered for OTTI. OTTI factors that are periodically considered include:

 

•  

If an order of liquidation or other fundamental credit issues with the partnership exists;

•  

If there is a significant reduction in scheduled cash flow activities between the Company and the partnership or fund during the year;

•  

If there is an intent to sell, or the Company may be required to sell, the investment prior to the recovery of cost of the investment; or

•  

If other qualitative/quantitative factors indicating an OTTI exist based on facts and circumstances of the investment.

 

   
 19    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Foreign Currency Translation

 

 

Foreign currency denominated assets and liabilities are translated into U.S. dollars using rates of exchange prevailing at the period end date. Revenues, expenses, gains, losses and surplus adjustments, of non-U.S. operations are translated into U.S. dollars based on weighted average exchange rate for the period. All gains or losses due to translation adjustments are recorded as unrealized gains (losses) within Unassigned surplus in the Statements of Liabilities, Capital and Surplus. All realized gains and losses due to exchange differences between settlement date and transaction date resulting from foreign currency transactions, not in support of foreign insurance operations, are included in Net realized capital gains (losses) in the Statements of Operations and Changes in Capital and Surplus.

Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans

 

 

The Company’s employees participate in various AIG-sponsored defined benefit pension and postretirement plans. AIG, as sponsor, is ultimately responsible for the maintenance of these plans in compliance with applicable laws. The Company is not directly liable for obligations under these plans. AIG charges the Company and its insurance company affiliates pursuant to intercompany expense sharing agreements; the expenses are then shared by the pool participants in accordance with the pooling agreement.

The Company incurred employee related costs related to defined benefit and defined contribution plans during 2023, 2022 and 2021 of $11, $6 and $4, respectively.

Income Taxes

 

 

The Company files a consolidated U.S. federal income tax return with AIG. AIG has more than 200 subsidiaries which form part of this tax return. A complete listing of the participating subsidiaries is included in Note 8.

The Company is allocated U.S. federal income taxes based upon an amended and restated tax sharing agreement (the “Tax Sharing Agreement”) with AIG, effective January 1, 2023, and approved by the Company’s Board of Directors. This agreement provides that the Company shall incur tax results that would have been paid or received by such company if it had filed a separate federal income tax return, with limited exceptions.

Additionally, while the agreement described above governs the current and deferred income tax recorded in the income tax provision, the amount of cash that will be paid or received for U.S. federal income taxes may at times be different. The terms of this agreement are based on principles consistent with the allocation of income tax expense or benefit on a separate company basis, except that:

 

•  

The sections of the Internal Revenue Code relating to the Base Erosion Anti-abuse Tax (“BEAT”) are applied, but only if the AIG consolidated group is subject to BEAT in the Consolidated Tax Liability,

•  

The impact of Deferred Intercompany Transactions (as defined in Treas. Reg. §1.1502-13(b)(1), if the “intercompany items” from such transaction, as defined in Treas. Reg. §1.1502-13(b)(2), have not been taken into account pursuant to the “matching rule” of Treas. Reg. §1.1502-13(c)), are excluded from current taxation, provided however, that the Company records the appropriate deferred tax asset and/or deferred tax liability related to the gain or loss and includes such gain or loss in its separate return tax liability in the subsequent tax year when the deferred tax liability or deferred tax asset becomes current; and

•  

Regarding the CAMT, the Company (i) is excluded from charges for any portion of AIG’s CAMT, (ii) is not allocated any portion of AIG’s CAMT credit carryover (if any), and (iii) reasonably expects that AIG (and/or other members of the consolidated tax group) is meeting any CAMT obligations.

The Company has an enforceable right to recoup federal income taxes in the event of future net losses that it may incur or to recoup its net losses carried forward as an offset to future net income subject to federal income taxes.

Under the Tax Sharing Agreement, income tax liabilities related to uncertain tax positions and tax authority audit adjustments (“TAAAs”) shall remain with the Company for which the income tax liabilities relate. Furthermore, if and when such income tax liabilities are realized or determined to no longer be necessary, the responsibility for any additional income tax liabilities, benefits or rights to any refunds due, remains with the Company.

In accordance with Circular Letter 1979-33 issued by the NY DFS, AIG shall establish and maintain an escrow account for amounts where the Company’s separate return liability exceeds the AIG consolidated tax liability. As of December 31, 2023, the Company’s separate return liability did not exceed the AIG consolidated tax liability and therefore no amounts were maintained in escrow.

 

   
 20    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Deferred Taxes

 

 

The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance, if necessary, to reduce the deferred tax asset to an amount that is more likely than not to be realized (“adjusted gross deferred tax asset”). The evaluation of the recoverability of the deferred tax asset and the need for a valuation allowance requires management 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 would be to support a conclusion that a valuation allowance is not needed.

The Company’s framework for assessing the recoverability of deferred tax assets requires it 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;

•  

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.

The adjusted gross deferred tax asset is then assessed for statutory admissibility. The reversing amount eligible for loss carryback or the amount expected to be realized in three years is admissible, subject to the defined surplus limitation. The remaining adjusted gross deferred tax asset can be admitted to the extent of offsetting deferred tax liabilities.

 

2.

Accounting Adjustments to Statutory Basis Financial Statements

 

 

 

A.  

Change in Accounting Principles

 

In 2023, 2022 and 2021, there were no significant changes or modifications in the Statements of Statutory Accounting Principles (“SSAP”).

Prior to the first quarter ended March 31, 2023, certain of the Company’s foreign property and casualty affiliates for which the Company provides internal reinsurance reported on the basis of a fiscal year ending November 30. Effective with the first quarter of the year ending December 31, 2023, these foreign property and casualty affiliates now report on a calendar year ending December 31. The elimination of a one-month reporting lag of these affiliates is considered a change in accounting principle and requires an adjustment to beginning surplus to record the cumulative effect of such change. Accordingly, in the twelve months ended December 31, 2023, the Company recorded an adjustment of $14 to surplus.

In 2021, the Company changed its method of accounting from insurance to deposit accounting with respect to a specific insurance program. As a result of the change in accounting, any previously established reserves associated with the program were reversed resulting in favorable development and a new deposit liability was established. However, whether accounted for as insurance or deposit, there is no net impact to the Company’s net income, surplus, total assets and total liabilities given the underlying nature and structure of the program. The Company assessed the impact of the change in accounting on prior years and has concluded that the cumulative effect of the change had no net effect on net income or surplus. Refer to Note 5 for additional details around prior year development.

 

B.  

Adjustments to Surplus

 

 

During 2023, 2022 and 2021 the Company identified corrections that resulted in after-tax statutory adjustments to beginning capital and surplus of $25, $(15) and $0, respectively. In accordance with SSAP No. 3, Accounting Changes and Corrections of Errors (“SSAP 3”), the corrections of errors have been reported in the 2023, 2022 and 2021 statutory financial statements as adjustments to Unassigned surplus. The impact of the 2023 corrections would have increased the 2022 pre-tax income by $21 and did not impact the 2021 pre-tax income.. Management has concluded that the effects of these errors on the previously issued financial statements were immaterial based on a quantitative and qualitative analysis. The impact to surplus, assets and liabilities as of January 1, 2023, 2022 and 2021 is presented in the following tables:

 

2023 Adjustments   

Policyholders’

Surplus

    

Total Admitted

Assets

     Total Liabilities  

Balance At December 31, 2022

    $     7,858     $     21,990     $     14,132  

Adjustments to beginning Capital and Surplus:

       

Asset corrections

      -       -       -  

Liability corrections

      29       -       (29 ) 

Income tax corrections

      (4 )      (3 )      1  

Total adjustments to beginning Capital and Surplus

      25       (3 )      (28 ) 

Balance at January 1, 2023 as adjusted

    $ 7,883     $ 21,987     $ 14,104  

 

   
 21    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

An explanation for each of the adjustments for prior period corrections is described below:

Liability corrections - The decrease in total liabilities is primarily due to (a) an overstatement of assumed Loss reserves and (b) an overstatement of Unearned premium reserve.

Income tax corrections - The decrease in the tax assets and increase in tax liability is primarily the result of (a) corrections to prior period balances for adjustments to the current and deferred tax assets and liabilities and (b) the tax effect of the corresponding change in asset realization and liability corrections.

 

2022 Adjustments   

Policyholders’

Surplus

     

Total Admitted

Assets

      Total Liabilities  

Balance At December 31, 2021

    $     7,662      $     22,070      $     14,408  

Adjustments to beginning Capital and Surplus:

         

Asset corrections

      -        -        -  

Liability corrections

      (8)        -        8  

Income tax corrections

      (7)        (6)        1  

Total adjustments to beginning Capital and Surplus

      (15)        (6)        9  

Balance at January 1, 2022 as adjusted

    $ 7,647      $ 22,064      $ 14,417  

An explanation for each of the adjustments for prior period corrections is described below:

Liability Corrections - The increase in total liabilities is primarily due the result of an adjustment in deferred commission earning.

Income tax corrections – The decrease in the tax assets and liabilities is primarily the result of (a) corrections to prior period balances for adjustments to the current and deferred tax assets and liabilities and (b) the tax effect of the corresponding change in asset realization and liability corrections.

 

2021 Adjustments   

Policyholders’

Surplus

     

Total Admitted

Assets

      Total Liabilities  

Balance At December 31, 2020

    $     6,696      $     22,828      $     16,132  

Adjustments to beginning Capital and Surplus:

         

Asset corrections

      -        -        -  

Liability corrections

      -        -        -  

Income tax corrections

      -        2        2  

Total adjustments to beginning Capital and Surplus

      -        2        2  

Balance at January 1, 2021 as adjusted

    $ 6,696      $ 22,830      $ 16,134  

An explanation for each of the adjustments for prior period corrections is described below:

Income tax corrections – The increase in the tax assets and liabilities is primarily the result of corrections to prior period balances for adjustments to the current and deferred tax assets and liabilities.

 

   
 22    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

3.

Investments

 

 

 

A.  

Bond Investments

 

 

The reconciliations from carrying value to fair value of the Company’s bond investments as of December 31, 2023 and 2022 are outlined in the tables below:

 

December 31, 2023   

Carrying

Value

     

Gross

Unrealized

Gains

     

Gross

Unrealized

Losses

    

Fair

Value

  

U.S. governments

    $ 821      $ 11      $ (22 )    $ 810  

All other governments

      115        3        (4 )      114  

States, territories and possessions

      242        8        (9 )      241  

Political subdivisions of states, territories and possessions

      290        2        (12 )      280  

Special revenue and special assessment obligations and all non-guaranteed obligations of agencies and authorities and their political subdivisions

      2,164        8        (210 )      1,962  

Industrial and miscellaneous

      10,010        230        (568 )      9,672  
         

Total

    $    13,642      $     262      $     (825 )    $     13,079  

 

 

           
December 31, 2022   

Carrying

Value

     

Gross

Unrealized

Gains

     

Gross

Unrealized

Losses

    

Fair

Value

  

U.S. governments

    $ 644      $ -      $ (51 )    $ 593  

All other governments

      131        -        (7 )      124  

States, territories and possessions

      285        7        (14 )      278  

Political subdivisions of states, territories and possessions

      303        -        (19 )      284  

Special revenue and special assessment obligations and all non-guaranteed obligations of agencies and authorities and their political subdivisions

      2,752        9        (275 )      2,486  

Industrial and miscellaneous

      10,309        193        (881 )      9,621  

Total

    $ 14,424      $ 209      $ (1,247 )    $ 13,386  

The carrying values and fair values of bonds at December 31, 2023, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties.

 

December 31, 2023   

Carrying

Value

     

Fair

Value

  

Due in one year or less

    $ 276      $ 274  

Due after one year through five years

      3,223        3,155  

Due after five years through ten years

      4,155        3,872  

Due after ten years

      990        889  

Structured securities

      5,005        4,896  

Total

    $    13,649      $    13,086  

 

   
 23    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

B.  

Mortgage Loan Investments

 

 

The minimum and maximum lending rates for mortgage loans during 2023 were:

 

Category   

Minimum

Lending Rate %

  

Maximum

Lending Rate %

     

Office

    6.0%   9.4%  

Industrial

    6.2%   6.2%  

Multi-Family

    5.8%   7.2%  

Hotel/Motel

    7.0%   7.4%  

The maximum percentage of any one loan to the value of security at the time of the loan, exclusive of insured or guaranteed or purchase money mortgages was 109 percent. The Company’s mortgage loan portfolio is current as to payments of principal and interest, for both periods presented. There were no significant amounts of nonperforming mortgages (defined as those loans where payment of contractual principal or interest is more than 90 days past due) during any of the periods presented. The Company did not have any advanced amounts for taxes or assessments.

The following table details an analysis of mortgage loans as of December 31, 2023 and 2022:

 

              Residential      Commercial          
      Farm      Insured      All Other      Insured      All Other      Mezzanine      Total  

2023

                     

Recorded Investment

                     

Current

    $      -      $      -      $      -      $      -      $     1,068      $      66      $      1,134  

30 - 59 days past due

      -        -        -        -        8        -        8  

60 - 89 days past due

      -        -        -        -        -        -        -  

90 - 179 days past due

      -        -        -        -        -        -        -  

Greater than 180 days past due

      -        -        -        -        -        -        -  

Total

    $ -      $ -      $ -      $ -      $ 1,076      $ 66      $ 1,142  

2022

                     

Recorded Investment

                     

Current

    $ -      $ -      $ -      $ -      $ 1,244      $ -      $ 1,244  

30 - 59 days past due

      -        -        -        -        -        -        -  

60 - 89 days past due

      -        -        -        -        -        -        -  

90 - 179 days past due

      -        -        -        -        -        -        -  

Greater than 180 days past due

      -        -        -        -        -        -        -  

Total

    $ -      $ -      $ -      $ -      $ 1,244      $ -      $ 1,244  

 

C.  

Loan-Backed and Structured Securities

 

 

The Company did not record any non-credit OTTI losses during 2023, 2022 and 2021 for LBaSS.

As of December 31, 2023, 2022 and 2021, the Company held LBaSS for which it recognized $5, $39 and $0, respectively, of credit-related OTTI based on the present value of projected cash flows being less than the amortized cost of the securities.

The following table shows the aggregate unrealized losses and related fair value relating to those securities for which an OTTI has not been recognized as of the reporting date and the length of time that the securities have been in a continuous unrealized loss position:

 

Years Ended December 31,    2023     2022  

Aggregate unrealized losses:

     

Less than 12 Months

    $ (112 )    $ 412  

12 Months or longer

      (196 )    $ 15  

Aggregate related fair value of securities with unrealized losses:

     

Less than 12 Months

    $      1,074     $      3,834  

12 Months or longer

      1,959     $ 95  

 

   
 24    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

D.  

Unrealized losses

 

 

The fair value of the Company’s bonds and stocks that had gross unrealized losses (where fair value is less than amortized cost) as of December 31, 2023 and 2022 are set forth in the tables below:

 

December 31, 2023    Less than 12 Months     12 Months or Longer     Total  
Description of Securities    Fair Value      Unrealized
Losses		     Fair Value      Unrealized
Losses		     Fair Value      Unrealized
Losses		  

U.S. governments

    $ 46      $ (1 )    $ 75      $ (21 )    $ 121      $ (22 ) 

All other governments

      56        (1 )      35        (6 )      91        (7 ) 

States, territories and possessions

      32        (1 )      89        (8 )      121        (9 ) 

Political subdivisions of states, territories and possessions

      47        (2 )      134        (10 )      181        (12 ) 

Special revenue and special assessment obligations and all non-guaranteed obligations of agencies and authorities and their political subdivisions

      540        (78 )      977        (132 )      1,517        (210 ) 

Industrial and miscellaneous

      1,232        (79 )      4,849        (533 )      6,081        (612 ) 

Total bonds

    $ 1,953      $ (162 )    $ 6,159      $ (710 )    $ 8,112      $ (872 ) 

Non-affiliated

      10        (1 )      -        -       10        (1 ) 

Total common stocks

    $ 10      $ (1 )    $ -      $ -     $ 10      $ (1 ) 

Preferred stocks

      2        (1 )      -        -       2        (1 ) 

Total Preferred stocks

    $ 2      $ (1 )    $ -      $ -     $ 2      $ (1 ) 

Total bonds and stocks

    $ 1,965      $ (164 )    $ 6,159      $ (710 )    $ 8,124      $ (874 ) 

 

                
December 31, 2022    Less than 12 Months     12 Months or Longer     Total  
Description of Securities    Fair Value      Unrealized
Losses		     Fair Value      Unrealized
Losses		     Fair Value      Unrealized
Losses		  

U.S. governments

    $ 590      $ (31 )    $ -      $ -     $ 590      $ (31 ) 

All other governments

      77        (10 )      38        (16 )      115        (26 ) 

States, territories and possessions

      150        (14 )      -        -       150        (14 ) 

Political subdivisions of states, territories and possessions

      249        (20 )      -        -       249        (20 ) 

Special revenue and special assessment obligations and all non-guaranteed obligations of agencies and authorities and their political subdivisions

      2,070        (268 )      45        (7 )      2,115        (275 ) 

Industrial and miscellaneous

      7,689        (869 )      441        (87 )      8,130        (956 ) 

Total bonds

    $     10,825      $     (1,212 )    $     524      $     (110 )    $     11,349      $     (1,322 ) 

Non-affiliated

      34        (9 )      -        -       34        (9 ) 

Total common stocks

    $ 34      $ (9 )    $ -      $ -     $ 34      $ (9 ) 

Total bonds and stocks

    $ 10,859      $ (1,221 )    $ 524      $ (110 )    $ 11,383      $ (1,331 ) 

 

E  

Realized Gains Losses

 

 

Proceeds from sales and associated gross realized gains (losses) for the years ended December 31, 2023, 2022 and 2021 were as follows:

 

       
Years ended December 31,    2023      2022      2021  
      Bonds    

Equity

Securities

      Bonds     

Equity

Securities

      Bonds     

Equity

Securities

  

Proceeds from sales

    $    3,813     $     117      $    1,458      $      19       $ 2,669      $      2  

Gross realized gains

      55       16        55        3        151        1  

Gross realized losses

      (186 )      -        145        1        30        -  

 

   
 25    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

F.  

Derivative Financial Instruments

 

 

The Company holds currency derivatives, interest rate derivatives and credit default swaps. Derivative products include currency swaps, interest rate swaps, currency forwards and default swaps. The Company’s currency derivative were entered into to manage risk from currency exchange rate fluctuations, and the impact of such fluctuations to surplus and cash flows on investments or loss reserves. While not accounted for under hedge accounting, the currency derivatives are economic hedges of the Company’s exposure to fluctuations in the value of receipts on certain investments held by the Company denominated in foreign currencies (primarily GBP and EUR), or of the Company’s exposure to fluctuations in recorded amounts of loss reserves denominated in foreign currencies (primarily JPY). Additionally, interest rate derivatives were entered into to manage risk from fluctuating interest rates in the market, and the impact of such fluctuations to surplus and cash flows on investments or loss reserves. The interest rate derivatives are cash flow hedges of the Company’s exposure to fluctuations in interest rates on investments in collateralized loan obligations. The Company’s credit default swaps were entered into to manage credit risk exposure to reinsurance counterparties.

Market Risk

The Company is exposed under these types of contracts to fluctuations in value of the swaps and forwards and variability of cash flows due to changes in interest rates and exchange rates.

Credit Risk

The current credit exposure of the Company’s derivative contracts is limited to the fair value of such contracts. Credit risk is managed by entering into transactions with creditworthy counterparties and obtaining collateral.

Cash Requirements

The Company is subject to collateral requirements on some of the Company’s derivative contracts. Additionally, the Company is required to make currency exchanges on fixed dates and fixed amounts or fixed exchange rates, or make a payment in the amount of foreign currency physically received on certain foreign denominated investments. For interest rate swaps, the Company is required to either make payments based on benchmark interest rates and in exchange receive fixed rate payments or make fixed rate payments and in exchange receive payments based on benchmark interest rates. For credit default swaps, the Company is required to make premium payments on a fixed payment date.

The Company has determined that the currency and interest rate derivatives do not qualify for hedge accounting under the criteria set forth in SSAP No. 86, Accounting for Derivative Instruments and Hedging Transactions (“SSAP 86”). As a result, the Company’s currency and interest rate contracts are accounted for at fair value and the changes in fair value are recorded as unrealized gains (losses) within the Statements of Operations and Changes in Capital and Surplus until the contract expires, paid down or is redeemed early. In the event a contract is fully redeemed before its expiration, the related unrealized amounts will be recognized in Net realized capital gains (losses). Furthermore, if the contract has periodic payments or fully matures, any related unrealized amounts are recognized in Net investment income earned.

The Company did not apply hedge accounting to any of its derivatives for any period in these financial statements. The following tables summarize the outstanding notional amounts, the fair values and the realized and unrealized gains or losses of the derivative financial instruments held by the Company for the years ended December 31, 2023 and 2022:

 

      December 31, 2023     Years ended December 31, 2023  
Derivative Financial Instrument   

Outstanding

 Notional Amount 

       Fair Value     

 Realized capital 

gains/ (losses)

     

Unrealized

 capital gains / 

(losses)

  

Swaps

    $ 862      $ (1 )    $ 3      $ (7 ) 

Forwards

      606        24       -        (4 ) 

Total

    $      1,468      $ 23     $ 3      $ (11 ) 

 

           
      December 31, 2022     Years ended December 31, 2022  
Deriva tive Financial Instrument    Outstanding Notional
Amount		      Fair Value     Realized Capital
gains/(losses)		      Unrealized
capital gains /
losses		  

Swaps

    $ 1,108      $ 3     $ 15      $ (8 ) 

Forwards

      680        29       -        39  

Total

    $ 1,788      $ 32     $ 15      $ 31  

 

G.  

Other Invested Assets

 

 

During 2023, 2022 and 2021, the Company recorded OTTI losses on investments in joint ventures and partnerships of $14, $15, and $18, respectively.

 

   
 26    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

H.  

Investment Income

 

 

Investment income due and accrued over 90 days past due of $1 was non-admitted in December 31, 2023 and December 31, 2022. Investment expenses of $45, $34 and $30 were included in Net investment income earned for the years ended December 31, 2023, 2022 and 2021, respectively.

The gross, nonadmitted assets and admitted amounts for interest income due and accrued were as follows:

 

   
Interest Income Due and Accrued    Amount  

Gross

    $ 113  

Nonadmitted

    $ 1  

Admitted

    $      112  

 

I.  

Restricted Assets

 

 

The Company had securities deposited with regulatory authorities, as required by law, with a carrying value of $2,073 and $1,788 as of December 31, 2023 and 2022, respectively.

 

4.

Fair Value of Financial Instruments

 

 

The following tables present information about financial instruments carried at fair value on a recurring basis and indicate the level of the fair value measurement as of December 31, 2023 and 2022:

 

December 31, 2023    Level 1      Level 2     Level 3      Total  

Bonds

    $ -      $ 343     $ 111      $ 454  

Common stocks

      3        6       109        118  

Preferred stock

      -        -       19        19  

Mutual funds

      -        -       11        11  

Derivative assets

      -        38       -        38  

Derivative liabilities

      -        (15 )      -        (15 ) 

Total

    $ 3      $ 373     $ 250      $ 626  
          
December 31, 2022    Level 1      Level 2     Level 3      Total  

Bonds

    $ -      $ 549     $ 137      $ 686  

Common stocks

      20        -       4        24  

Preferred Stock

      -        -       29        29  

Mutual funds

      -        -       31        31  

Derivative assets

      -        58       -        58  

Derivative liabilities

      -        (27 )      -        (27 ) 

Total

    $        20      $        580     $        201      $        801  

 

   
 27    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

A.  

Fair Value Measurements in Level 3 of the Fair Value Hierarchy

 

 

The following tables show the balance and activity of financial instruments classified as level 3 in the fair value hierarchy for the years ended December 31, 2023 and 2022:

 

    

Beginning

Balance at

January 1,

2023

    

Transfers

into Level 3

    

Transfers

out of Level

3

    

Total Gains

(Losses)

included in

Net Income

    

Total Gains

(Losses)

Included in

Surplus

    

Purchases,

Sales,

Issuances,

Settlements,

Net

    

Balance at

December 31,

2023

  

Bonds

   $ 138     $ 149     $ (57 )    $ (3 )    $ 16     $ (132 )    $ 111  

Preferred stocks

     29       -       -       3       -       (13 )      19  

Common stocks

     4       -       -       (1 )      -       105       109  

Mutual funds

     31       -       (17 )      7       (4 )      (6 )      11  

Total

   $ 202     $ 149     $ (74 )    $ 6     $ 13     $ (46 )    $ 250  

 

              
    

Beginning

Balance at

January 1,

2022

    

Transfers

into Level 3

    

Transfers

out of Level

3

    

Total Gains

(Losses)

included in

Net Income

    

Total Gains

(Losses)

included in

Surplus

    

Purchases,

Sales,

Issuances,

Settlements,

Net

    

Balance at

December 31,

2022

  

Bonds

   $ 73     $ 127     $ (55 )    $ 1     $ (6 )    $ (3 )    $ 137  

Preferred Stocks

     -       -       -       -       2       27       29  

Common stocks

     -       -       -       -       -       4       4  

Mutual funds

     34       -       -       3       (8 )      2       31  

Total

   $       107     $       127     $       (55 )    $       4     $       (12 )    $       30     $       201  

Assets are transferred out of Level 3 when circumstances change such that significant inputs can be corroborated with market observable data or when the asset is no longer carried at fair value. This may be due to a significant increase in market activity for the asset, a specific event, one or more significant inputs becoming observable or when a long-term interest rate significant to a valuation becomes short-term and this observable. Transfers out of Level 3 can also occur due to favorable credit migration resulting in a higher NAIC designation. Securities are generally transferred into Level 3 due to a decrease in market transparency, downward credit migration and an overall increase in price disparity for certain individual security types. The Company’s policy is to recognize transfers in and out at the end of the reporting period, consistent with the date of the determination of fair value.

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 and from internal valuation models. Because input information from third-parties with respect to certain Level 3 instruments may not be reasonably available to the Company, balances shown below may not equal total amounts reported for such Level 3 assets.

 

     

Fair Value at December 31,

2023

     

Valuation Technique

   

Unobservable Input

   

Range (Weighted Average)

 Assets:

                        

 Bonds

    $ 1,225     

Discounted cash flow

    Yield    5.65% - 7.64% (6.65%)

 

   
 28    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

B.

Fair Value of all Financial Instruments

 

 

The table below details the fair value of all financial instruments except for those accounted for under the equity method as of December 31, 2023 and 2022:

 

             
December 31, 2023    Aggregate
Fair Value		    

Admitted

Assets

      Level 1        Level 2       Level 3      

Not

Practicable

 (Carry Value) 

  

Bonds

    $    13,078     $    13,642     $ -      $ 11,621     $ 1,458      $ -  

Cash equivalents and short term investments

      34       34       26        8       -        -  

Common stocks

      118       118       3        6       109        -  

Derivative assets

      38       38       -        38       -        -  

Derivative liabilities

      (15)       (15)       -        (15)       -        -  

Mortgage loans

      1,129       1,142       -        -       1,129        -  

Mutual funds

      11       11       -        -       11        -  

Preferred stocks

      19       19       -        -       19        -  
             

Total

    $ 14,412     $ 14,989     $ 29      $ 11,658     $ 2,726      $ -  
                
             
December 31, 2022   

Aggregate

Fair Value

    

Admitted

Assets

     Level 1      Level 2     Level 3     

Not

Practicable

(Carry Value)

  

Bonds

    $ 13,386     $ 14,424     $ 9      $ 11,639     $ 1,738      $ -  

Cash equivalents and short term investments

      213       213       72        70       71        -  

Common stocks

      32       32       20        8       4        -  

Derivative assets

      58       58       -        58       -        -  

Derivative liabilities

      (27 )      (27 )      -        (27 )      -        -  

Mortgage loans

      1,198       1,244       -        -       1,198        -  

Mutual funds

      31       31       -        -       31        -  

Preferred Stocks

      29       29       -        -       29        -  
             

Total

    $ 14,920     $ 16,004     $ 101      $ 11,748     $ 3,071      $ -  

 

5.

Reserves for Losses and Loss Adjustment Expenses

 

 

A roll forward of the Company’s net reserves for losses and LAE as of December 31, 2023, 2022 and 2021, is set forth in the table below:

 

       
December 31,    2023     2022     2021  

Reserves for losses and LAE, end of prior year

    $ 8,172     $ 8,216     $ 8,979  

Cumulative effect of accounting change*

      -       -       (51 ) 

Incurred losses and LAE related to:

       

Current accident year

      2,726       2,764       2,856  

Prior accident year

      (29 )      23       (64 ) 

Total incurred losses and LAE

    $ 2,697     $ 2,787     $ 2,792  

Paid losses and LAE related to:

       

Current accident year

      (868 )      (838 )      (759 ) 

Prior accident year

      (2,082 )      (1,993 )      (2,745 ) 

Total paid losses and LAE

      (2,950 )      (2,831 )      (3,504 ) 

Reserves for losses and LAE, end of current year

    $      7,919     $      8,172     $      8,216  

*Accounting reclassification from insurance to deposit accounting with respect to a specific commercial insurance program (Refer to Note 2A).

During 2023, after applying the impact of the ADC, the Company reported net favorable incurred loss and LAE of approximately $29. This favorable incurred includes $8 favorable due to changes in discount as a result of interest rate fluctuation. This results in a favorable prior year development (“PYD”) of $21.

The favorable PYD was mostly driven by favorable development in Workers Compensation and Personal Insurance, partially offset by adverse development in Other Liability Claims Made and Special Property.

 

   
 29    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

During 2022, after applying the impact of the ADC, the Company reported net unfavorable incurred loss and LAE of approximately $23. This unfavorable incurred includes $50 unfavorable due to changes in discount as a result of interest rate fluctuation. This results in a favorable PYD of $27.

The favorable PYD was driven by favorable development in Personal Insurance, partially offset by adverse development in Commercial Insurance.

During 2021, after applying the impact of the ADC, the Company reported net favorable incurred loss and LAE of approximately $64. This favorable incurred includes $22 favorable due to changes in discount as a result of interest rate fluctuation. This results in a net favorable PYD of $42.

The favorable PYD is generally a result of the following:

 

  •  

Strong favorable development in Personal Insurance, primarily attributable to subrogation recovery related to the 2017 and 2018 California wildfires;

  •  

Favorable development on U.S. Workers Compensation and short-tailed commercial lines within Other Product Lines, reflecting lower frequency and severity in recent calendar years;

The above favorable development is partially offset by unfavorable development as a result of the following:

 

  •  

U.S. Property and Special Risk Commercial lines were adversely impacted by the impact of dropping below the attachment point of the 2018 catastrophe aggregate treaty;

  •  

Reserve strengthening within U.S. Financial Lines, reflecting higher severity of claims in Directors & Officers and cyber risk;

  •  

Unfavorable development primarily attributed to the Blackboard insurance portfolio due to increased severity on reported claims.

The Company’s reserves for losses and LAE have been reduced for anticipated salvage and subrogation of $202, $204 and $214 for the years ended December 31, 2023, 2022 and 2021, respectively. The Company paid $8, $8 and $15 in the reporting period to settle 86, 98 and 112 claims related to extra contractual obligations or bad faith claims stemming from lawsuits for the years ended December 31, 2023, 2022 and 2021, respectively.

 

A.

Asbestos/Environmental Reserves

 

 

The Company has indemnity claims asserting injuries from toxic waste, hazardous substances, asbestos and other environmental pollutants and alleged damages to cover the clean-up costs of hazardous waste dump sites (environmental claims). Estimation of environmental claims loss reserves is a difficult process, as these claims, which emanate from policies written in 1986 and prior years, cannot be estimated by conventional reserving techniques. Environmental claims development is affected by factors such as inconsistent court resolutions, the broadening of the intent of policies and scope of coverage and increasing number of new claims. The Company and other industry members have and will continue to litigate the broadening judicial interpretation of policy coverage and the liability issues. If the courts continue in the future to expand the intent of the policies and the scope of the coverage, as they have in the past, additional liabilities would emerge for amounts in excess of reserves held. This emergence cannot now be reasonably estimated, but could have a material impact on the Company’s future operating results or financial position.

 

   
 30    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

The Company has exposure to asbestos and/or environmental losses and LAE costs arising from pre-1986 general liability, product liability, commercial multi-peril and excess liability insurance or reinsurance policies as noted below:

 

     Asbestos Losses     Environmental Losses  
             
December 31,    2023     2022     2021     2023     2022     2021  

Direct

             

Loss and LAE reserves, beginning of year

    $     537     $     550     $     618     $     219     $     240     $     286  

Incurred losses and LAE

      29       33       46       -       (3 )      -  

Calendar year paid losses and LAE

      (44 )      (46 )      (114 )      (15 )      (18 )      (46 ) 

Loss and LAE Reserves, end of year

    $ 522     $ 537     $ 550     $ 204     $ 219     $ 240  

Assumed reinsurance

             

Loss and LAE reserves, beginning of year

    $ 244     $ 257     $ 292     $ 16     $ 16     $ 18  

Incurred losses and LAE

      (4 )      (4 )      6       -       -       -  

Calendar year paid losses and LAE

      (6 )      (9 )      (41 )      (1 )      -       (2 ) 

Loss and LAE Reserves, end of year

    $ 234     $ 244     $ 257     $ 15     $ 16     $ 16  

Net of reinsurance

             

Loss and LAE reserves, beginning of year

    $ 1     $ 1     $ 1     $ -     $ -     $ -  

Incurred losses and LAE

      -       -       -       -       -       -  

Calendar year paid losses and LAE

      -       -       -       -       -       -  

Loss and LAE Reserves, end of year

    $ 1     $ 1     $ 1     $ -     $ -     $ -  

The Company estimates the full impact of the asbestos and environmental exposure by establishing case basis reserves on all known losses and establishes bulk reserves for IBNR losses and LAE based on management’s judgment after reviewing all the available loss, exposure, and other information.

Included in the above table are loss and LAE - IBNR and bulk reserves arising from pre-1986 general liability, product liability, commercial multi-peril and excess liability insurance or reinsurance policies as noted below:

 

     
Asbestos    Loss Reserves      LAE Reserves  
December 31,    2023      2022      2023      2022  

Direct basis:

    $         220      $         232      $         20      $         19  

Assumed reinsurance basis:

      95        84        6        7  

Net of ceded reinsurance basis:

      -        -        -        -  
           
     
Environmental    Loss Reserves      LAE Reserves  
December 31,    2023      2022      2023      2022  

Direct basis:

    $ 80      $ 83      $ 42      $ 50  

Assumed reinsurance basis:

      5        5        3        3  

Net of ceded reinsurance basis:

      -        -        -        -  

 

B.

Discounting of Liabilities for Unpaid Losses or Unpaid Loss Adjustment Expenses

 

 

The Company discounts its workers’ compensation (both tabular and non-tabular) reserves.

The calculation of the Company’s tabular discount is based upon the mortality table used in the 2007 US Decennial Life Table, and applying a weighted average discount rate of 3.70 percent and 3.76 percent interest rate as of December 31, 2023 and 2022. The tabular reserve is capped at 45% of total outstanding reserve discount. Only case basis reserves are subject to tabular discounting. The December 31, 2023 and 2022 liabilities include $538 and $616 of such discounted reserves, respectively.

 

 31    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

Tabular Reserve Discount

 

 

The table below presents the amount of tabular discount applied to the Company’s reserves as of December 31, 2023, 2022 and 2021.

 

     
Lines of Business    2023      2022      2021  

Workers’ Compensation

         

Case Reserves

    $       98      $       104      $       119  

As of December 31, 2023, 2022 and 2021, the tabular case reserve discount is presented net of the ceded discount related to the ADC of $95, $101, and $116, respectively.

Non-Tabular Discount

 

 

The Company’s non-tabular workers’ compensation case reserves are discounted using the Company’s own payout pattern and a 5 percent interest rate, as prescribed by NY SAP. The table below presents the amount of non-tabular discount applied to the Company’s reserves as of December 31, 2023, 2022 and 2021.

 

     
Lines of Business    2023      2022      2021  

Workers’ Compensation

         

Case Reserves

    $       152      $       138      $       165  

As of December 31, 2023, 2022 and 2021, the non-tabular case reserve discount is presented net of the ceded discount related to the ADC of $116, $123, and $142,respectively.

 

   
 32    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

6.

Related Party Transactions

 

 

 

A.

Combined Pooling Agreement

 

 

As described in Note 1, effective January 1, 2021, the Combined Pooling Agreement was amended and restated among the twelve member companies.

The following table shows the changes in assets, liabilities and surplus as a result of the 2021 Repooling Transaction:

 

  

 

 

 

     Amount
Assets:   

Agents’ balances or uncollected premiums

     $ (151 ) 

Amounts recoverable from reinsurers

      (52 ) 

Funds held by or deposited with reinsured companies

      (22 ) 

Other insurance assets

      (16 ) 
  

 

 

 

Total Assets

     $ (241 ) 
  

 

 

 

Liabilities   

Unearned premium reserves (net)

      (233 ) 

Reinsurance payable on paid losses and loss adjustment expenses

      (70 ) 

Reserves for losses and loss adjustment expenses (net)

      (789 ) 

Funds held by company under reinsurance treaties

      (156 ) 

Ceded reinsurance premiums payable

      (40 ) 

Payable to parent, subsidiaries and affiliates

      (15 ) 

Other insurance liabilities

      (68 ) 
  

 

 

 

Total Liabilities

     $ (1,371 ) 
  

 

 

 

Statements of Operations and Changes in Surplus   

Net premiums written

     $ (233 ) 

Change in unearned premium reserves

      233  
  

 

 

 

Premiums earned

      -  
  

 

 

 

Other underwriting expenses incurred

      (54 ) 
  
  

 

 

 

Net income

      (54 ) 
  

 

 

 

        
  

 

 

 

Total change in Surplus      (54 ) 
  
  

 

 

 

Net Impact Corresponding to Consideration Receivable / (Payable)

     $       (1,076 ) 
  

 

 

 

Other underwriting expenses incurred represent the net expense allowance impact to the Company pursuant to the Combined Pooling Agreement.

Under the terms of the Combined Pooling Agreement, certain insurance assets and liabilities were transferred gross of admissibility, recoverability allowances, provisions and discount amounts. As a result of the transaction, the Company recorded an increase/(decrease) in its Assets, Liabilities and Surplus related to the following:

 

Line Description     

 Change in

Surplus

  

 

    

 Impact to Net

Income

  

 

Change in nonadmitted assets

    $ 5     $ -  

Workers’ compensation discount

      (24 )      (24 ) 

Other allocations

      5       4  

Total

    $      (14 )    $      (20 ) 

The Company became a thirty two percent participant in the Combined Pool pursuant to the aforementioned amendment to the Combined Pooling Agreement. As a result, the special surplus of $69 on the gain from retroactive reinsurance ceded related to the decreased pool participation percentage reduced aggregate write-ins for special surplus funds with a corresponding increase in Unassigned surplus.

 

 33    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

B. Significant Transactions

 

 

The following table summarizes transactions (excluding reinsurance and cost allocation transactions) that occurred during 2023, 2022 and 2021 between the Company and affiliated companies in which the value exceeded one-half of one percent of the Company’s admitted assets as of December 31, 2023, 2022 and 2021:

 

               2023
              

Assets Received by

the Company

   

Assets Transferred by

the Company

Date of

Transaction

   

Explanation of

Transaction

    Name of Affiliate   

Statement

Value

      Description   

Statement

Value

      Description

3/21/2023

    PC Dividend    AIG PC US    $ -       -    $ 200       Cash

9/21/2023

    PC Dividend    AIG PC US    $ -       -    $ 150       Cash

12/21/2023

    Return of Capital    AIG PC US    $ -       -    $ 946       Cash

12/21/2023

    Common Capital Stock    AIG PC US    $ -       -    $ 4        Cash
               2022
              

Assets Received by

the Company

   

Assets Transferred by

the Company

Date of

Transaction

   

Explanation of

Transaction

    Name of Affiliate   

Statement

Value

      Description   

Statement

Value

      Description

9/9/2022

    Sale of Securities    US Life NY    $ 165       Cash    $ 165       Securities
               2021
              

Assets Received by

the Company

   

Assets Transferred by

the Company

Date of

Transaction

   

Explanation of

Transaction

    Name of Affiliate   

Statement

Value

      Description   

Statement

Value

      Description

11/22/2021

    Purchase of Securities    AG Life    $ 129       Securities    $ 129       Cash

11/22/2021

    Sale of Securities    AG Life    $ 510       Cash    $ 510       Securities

Share Repurchase

On December 21, 2023, the Company repurchased 188,228 shares of its authorized and outstanding shares of common stock at a book value of $5,047.10 per share (in whole dollars) for a total repurchase price of $950, which was distributed in cash to its immediate parent. As a result of this transaction, the Company’s capital stock was decreased by $4 and its gross paid in and contributed surplus was decreased by $946. The transaction was approved by the Company’s board of directors and NY DFS.

C. Amounts Due to or from Related Parties

 

 

At December 31, 2023 and 2022, the Company reported the following receivables/payables balances from/to its Ultimate Parent, subsidiaries and affiliates (excluding reinsurance transactions). Intercompany agreements have defined settlement terms and related receivables are reported as nonadmitted if balances due remain outstanding more than ninety days past the due date as specified in the agreement.

 

As of December 31,    2023      2022  

Balances with National Union

    $ 407      $ 13  

Balances with other member pool companies

      42        26  

Balances with other affiliates

      24        14  
     

Receivable from parent, subsidiaries and affiliates

    $ 473      $ 53  

Balances with other member pool companies

      -        3  

Balances with other affiliates

      14        9  
     

Payable to parent, subsidiaries and affiliates

    $        14      $        12  

Current federal and foreign taxes payable under the Tax Sharing Agreement at December 31, 2023 and 2022 were $(20) and $(26), respectively.

 

   
 34    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

The Company did not change its methods of establishing terms regarding any transactions with its affiliates during the years ended December 31, 2023 or 2022.

D. Guarantees or Contingencies for Related Parties

 

 

The Company has issued guarantees whereby it unconditionally and irrevocably guarantees all present and future obligations and liabilities arising from the policies of insurance issued by certain insurers who, as of the guarantee issue date, were members of the AIG holding company group. The guarantees were provided in order to secure or maintain the guaranteed companies’ rating status issued by certain rating agencies, as disclosed in Note 10.

E. Management, Service Contract and Cost Sharing Arrangements

 

 

As an affiliated company of AIG, the Company utilizes centralized services from AIG and its affiliates. The Company is allocated a charge for these services, based on the amount of incremental expense associated with operating the Company as a separate legal entity. The amount of expense allocated to the Company each period was determined based on an analysis of services provided to the Company.

The following table summarizes fees incurred related to affiliates that exceeded one-half of one percent of the Company’s admitted assets during 2023, 2022 and 2021:

 

Affiliates    2023           2022           2021  

AIG Claims Inc.

    $ 134        $ 126        $ 129  

AIG PC Global Services, Inc.*

      165          411          102  

Total

    $       299          $       537          $       231  

*AIG PC Global Services, Inc. is below one-half of one percent in 2021.

F. Borrowed Money

 

 

The Company (among other affiliates) is a borrower under a Loan Agreement, with AIG, as lender, pursuant to which the Company may borrow funds from AIG from time to time (the “Loan Facility”). The aggregate amount of all loans that may be outstanding under the Loan Facility at a given time is $500. As of December 31, 2023 and 2022, the Company had no outstanding liability pursuant to this Loan Facility.

Significant debt terms and covenants include the following:

 

  •  

The Company must preserve and maintain its legal existence while maintaining all rights, privileges and franchises necessary to the normal conduct of its business;

  •  

The Company must take, or cause to be taken, all other actions reasonably necessary or desirable to preserve and defend the rights of the Lender to payment hereunder, and to assure to the Lender the benefits hereof; and

  •  

The Company must not merge with or into or consolidate with any other person, sell, transfer or dispose of all or substantially all of its assets or undergo any change in the control of its voting stock unless (a) such merger or consolidation is with or into a wholly-owned subsidiary of Lender, (b) such sale or transfer is to a wholly-owned subsidiary of the Lender or (c) The Company receives the prior written authorization from the Lender.

There have been no violations of the terms and covenants associated with the debt issuance.

Refer to Note 11 E regarding funds borrowed from FHLB.

7. Reinsurance

 

 

In the ordinary course of business, the Company may use both treaty and facultative reinsurance to minimize its net loss exposure to a) any single catastrophic loss event; b) an accumulation of losses from a number of smaller events; or c) provide greater risk diversification. Based on the terms of the reinsurance contracts, a portion of expected IBNR losses will be recoverable in accordance with terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. Ceded amounts related to paid and unpaid losses and loss expenses with respect to these reinsurance agreements are generally substantially collateralized. The Company remains liable to the extent that the reinsurers do not meet their obligation under the reinsurance contracts after any collateral is exhausted, and as such, the financial condition of the reinsurers is regularly evaluated and monitored for concentration of credit risk. In addition, the Company assumes reinsurance from other insurance companies.

 

   
 35    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

The following table presents direct, assumed reinsurance and ceded reinsurance written and earned premiums for the years ended December 31, 2023, 2022 and 2021:

 

Years Ended December 31,    2023      2022      2021  
                                 Written      Earned  

Direct premiums

    $ 460      $ 388      $ 411      $ 400      $ 410      $ 401  

Reinsurance premiums assumed:

                  

Affiliates

      7,649        7,642        7,400        7,236        6,874        6,951  

Non-affiliates

      200        158        198        200        166        178  

Gross Premiums

    $    8,309      $    8,188      $    8,009      $    7,836      $    7,450      $    7,530  

Reinsurance premiums ceded:

                  

Affiliates

      1,546        1,341        1,261        1,251        1,276        1,275  

Non-affiliates

      2,544        2,595        2,425        2,291        2,165        2,145  

Net Premiums

    $ 4,219      $ 4,252      $ 4,323      $ 4,294      $ 4,009      $ 4,110  

As of December 31, 2023 and 2022, and for the years then ended, the Company’s unearned premium reserves, paid losses and LAE, and reserves for losses and LAE (including IBNR), have been reduced for reinsurance ceded as follows:

 

                          

December 31, 2023:

         

Affiliates

    $ 706      $ 116      $ 6,162  

Non-affiliates

      921        610        6,955  

Total

    $ 1,627      $ 726      $ 13,117  

December 31, 2022:

         

Affiliates

    $ 616      $ 80      $ 6,565  

Non-affiliates

      972        536        7,332  

Total

    $      1,588      $       616      $      13,897  

A. Reinsurance Return Commission 

 

 

The maximum amount of return commission which would have been due to reinsurers if all of the Company’s reinsurance had been cancelled as of December 31, 2023 and 2022 with the return of the unearned premium reserve is as follows:

 

      Assumed Reinsurance             Ceded Reinsurance           Net  
    

Premium

Reserve

     

Commission

Equity

           

Premium

Reserve

     

Commission

Equity

         

Premium

Reserve

    

Commission

Equity

  

December 31, 2023

                                                                 

Affiliates

    $     3,701      $     763        $ 726      $ 137        $ 2,975     $ 626  

All Other

      140        29          901        170          (760 )      (141 ) 

Total

    $ 3,841      $ 792              $     1,627      $     307          $      2,215     $     485  

December 31, 2022

                     

Affiliates

    $ 3,822      $ 814        $ 616      $ 114        $ 3,206     $ 700  

All Other

      75        16          972        180          (897 )      (164 ) 

Total

    $ 3,897      $ 830              $ 1,588      $ 294          $ 2,309     $ 536  

 

   
 36    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

B.  

Unsecured Reinsurance Recoverable

 

 

The aggregate unsecured reinsurance balances (comprising recoverables for paid and unpaid losses and LAE and unearned premium reserves) in excess of three percent of policyholders’ surplus at December 31, 2023 and 2022 with respect to an individual reinsurer, and each of such reinsurer’s related group members having an unsecured aggregate reinsurance balance with the Company, are as follows:

 

Reinsurer   2023   2022

Affiliates:

    

Combined Pool*

   $       6,101     $       6,297  

Eaglestone

     444       513  

Other affiliates

     310       311  

Total affiliates

   $ 6,855      $ 7,121   

Berkshire Hathaway Group

     143       167  

Swiss Reinsurance Group

     366       426  

Munich Reinsurance Group

     284       271  

Hannover Re Group**

     277       232  

Total Non-affiliates

     1,070       1,096  

Total affiliates and non-affiliates

   $ 7,925     $ 8,217  

* Includes intercompany pooling impact of $533 related to Unearned Premium Reserve, $5,450 related to Reserves for Losses and LAE and $27 related to Paid losses and LAE as of and for the year ended December 31, 2023, and $437, $5,709, and $9, respectively, as of and for the year ended December 31, 2022.

** Hannover Re Group is below 3% threshold for 2022.

 

C.  

Reinsurance Recoverable in Dispute

 

At December 31, 2023 and 2022, the aggregate of all disputed items did not exceed ten percent of capital and surplus and there were no amounts in dispute for any single reinsurer that exceeded five percent of capital and surplus. The total reinsurance recoverable balances in dispute are $35 and $16 as of December 31, 2023 and 2022, respectively.

 

D.  

Retroactive Reinsurance

 

On January 20, 2017, the Combined Pool entered into an adverse development reinsurance agreement with NICO under which the Combined Pool ceded to NICO eighty percent of its reserve risk above an attachment point on substantially all of its U.S. Commercial long-tail exposures for accident years 2015 and prior. Under this agreement, the Combined Pool ceded to NICO eighty percent of net paid losses on subject business on or after January 1, 2016 in excess of $25,000 of net paid losses, up to an aggregate limit of $25,000. At NICO’s 80 percent share, NICO’s limit of liability under the contract is $20,000. The Combined Pool paid consideration of approximately $10,188 in February 2017, including interest at 4 percent per annum from January 1, 2016 through date of payment. American Home’s share of the consideration paid was $3,566. NICO placed the consideration received into a collateral trust account as security for NICO’s claim payment obligations, and Berkshire Hathaway Inc. has provided a parental guarantee to secure NICO’s obligations under the agreement.

American Home accounted for this transaction as prospective reinsurance, except that the surplus gain associated with the ADC has been reported in a segregated surplus account and does not form a part of the Company’s Unassigned surplus.

The total surplus gain recognized by the Combined Pool as of December 31, 2023, 2022 and 2021 was $1,514, $1,522, and $1,996, respectively. American Home’s share of this gain as of December 31, 2023, 2022 and 2021 was $627, $664 and $685, respectively. The surplus gain is presented as segregated surplus and subject to the applicable dividend restrictions. This amount must be restricted in surplus until such time as the actual retroactive reinsurance recovered from NICO exceeds the consideration paid for the cession.

 

E.  

Reinsurance Agreements Qualifying for Reinsurer Aggregation

 

In 2011, the Combined Pool companies entered into a loss portfolio transfer reinsurance agreement with Eaglestone, an affiliate, which provides coverage up to a limit of $5,000 for the Pool’s net asbestos exposures. Effective the same date, Eaglestone retroceded the majority of this exposure to NICO, an unaffiliated company. NICO provides coverage up to a limit of $3,500 for subject business covered under the agreement. NICO administers claims and pursues amounts recoverable from the Combined Pool companies’ reinsurers with respect to paid losses and loss adjustment expenses. To the extent that the prior reinsurers pay, the amounts are collected and retained by NICO. NICO maintains funds in trust for the benefit of Eaglestone under the contract; as of December 31, 2023 and 2022 the amount in trust was $4,764 and $4,282 , respectively. The amount of the unexhausted limit under the NICO agreement as of December 31, 2023 and 2022 was $990 and $1,004 , respectively. The Company has accounted for its cession to Eaglestone as prospective reinsurance.

 

   
 37    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

8.

Income Taxes

 

U.S. TAX LAW CHANGES

On August 16, 2022, the U.S. enacted the Inflation Reduction Act (“IRA”) of 2022 (H.R. 5376), which finances climate and energy provisions and an extension of enhanced subsidies under the Affordable Care Act. Key provisions include a 15 percent corporate alternative minimum tax (“CAMT”) on adjusted financial statement income for corporations with average profits over $1 billion over a three-year period, a 1 percent stock buyback tax, increased IRS enforcement funding, and Medicare’s new ability to negotiate prescription drug prices. CAMT and the stock buyback tax are effective for tax years beginning after December 31, 2022. As of December 31, 2023, the Company is considered an applicable reporting entity with tax allocation agreement exclusions. Therefore, the Company is not required to calculate or recognize CAMT in its current or deferred tax computations, and there is no impact of the CAMT included in the fourth quarter 2023 financial statements.

The components of the Company’s net deferred tax assets/liabilities (“DTA”/“DTL”) as of December 31, 2023 and 2022 are as follows:

 

     12/31/2023     12/31/2022     Change  
     Ordinary     Capital     Total     Ordinary     Capital     Total     Ordinary     Capital     Total  

Gross DTA

    $     336     $    250     $    586     $    480     $    266     $    746     $    (144 )    $    (16 )    $    (160 ) 

Statutory Valuation Allowance

     -       43       43       -       23       23       -       20       20  

Adjusted Gross DTA

     336       207       543       480       243       723       (144 )      (36 )      (180 ) 

Nonadmitted DTA

     6       -       6       14       -       14       (8 )      -       (8 ) 

Subtotal Admitted DTA

     330       207       537       466       243       709       (136 )      (36 )      (172 ) 

DTL

     107       207       314       120       243       363       (13 )      (36 )      (49 ) 

Net Admitted DTA/(DTL)

    $ 223     $ -     $ 223     $ 346     $ -     $ 346     $ (123 )    $ -     $ (123 ) 

At December 31, 2023, the Company recorded gross deferred tax assets (“DTA”) of $586. A valuation allowance was established on deferred tax assets net of liabilities of $43 as it is management’s belief that certain assets will not be realized in the foreseeable future. Tax planning strategies had no impact on the determination of the net admitted DTA.

The following table shows the summary of the calculation for the net admitted DTA as of December 31, 2023 and 2022:

 

     12/31/2023   12/31/2022   Change
     Ordinary   Capital   Total   Ordinary   Capital   Total   Ordinary   Capital   Total
Adjusted gross DTAs realizable within 36 months or 15 percent of statutory surplus (the lesser of 1 and 2 below)     223       -       223       346       -       346       (123 )      -       (123 ) 

1. Adjusted gross DTAs realizable

within 36 months

     223       -       223       346       -       346       (123 )      -       (123 ) 

2. 15 percent of statutory surplus

     NA       NA       1,033       NA       NA       1,127       NA       NA       1,127  

Adjusted gross DTAs that can be offset against DTLs

     107       207       314       120       243       363       (13 )      (36 )      (49 ) 
Total DTA admitted as the result of application of SSAP 101   $    330     $    207     $    537     $    466     $    243     $    709     $    (136 )    $    (36 )    $    (172 ) 

 

    2023   2022  

Ratio percentage used to determine recovery period and threshold limitation amount

     573 %      638  % 

Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in (2) above.

    $      6,887      $     7,511   

The following table shows the components of the current income tax expense (benefit) for the periods listed:

 For the Years Ended December 31,   2023   2022     Change  

Federal income tax

    $ 4     $ (32 )    $     36  

Foreign income tax

     12        7       5  

Subtotal

     16       (25 )      41  

Federal income tax on net capital gains

     (4 )      39       (43 ) 

Federal and foreign income taxes incurred

    $      12     $      14     $ (2 ) 

 

   
 38    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

The following table shows the components of the DTA split between ordinary and capital DTA as of December 31, 2023 and 2022:

 

      2023      2022      Change  

Ordinary

         

Discounting of unpaid losses

    $ 107      $ 109      $ (2)  

Nonadmitted assets

      21        19        2   

Unearned premium reserve

      108        117        (9)  

Bad debt expense

      4        7        (3)  

Net operating loss carry forward

      -        52        (52)  

Foreign tax credit carry forward

      28        86        (58)  

Investments

      26        40        (14)  

Intangible assets

      4        6        (2)  

Compensation and benefits accrual

      9        10        (1)  

Deferred ceding commission liability

      17        -        17  

Other temporary differences

      12        35        (23)  

Subtotal

      336        480        (145)  

Nonadmitted

      6        14        (8)  

Admitted ordinary deferred tax assets

    $      330      $      466      $      (137)  

Capital

         

Investments

    $ 223      $ 238      $ (15)  

Unrealized capital losses

      27        28        (1)  

Subtotal

      250        266        (16)  

Statutory valuation allowance adjustment

      43        23        20   

Admitted capital deferred tax assets

      207        243        (36)  

Admitted deferred tax assets

    $ 537      $ 709      $ (172)  

The following table shows the components of the DTL split between ordinary and capital DTL as of December 31, 2023 and 2022:

      2023      2022      Change  

Ordinary

         

Investments

    $ 85      $ 86      $ (1)  

Tax Act adjustment to discounting of unpaid losses

      11        16        (5)  

Compensation and benefits accrual

      9        17        (8)  

Other temporary differences

      1        -         1  

Section 481(a) adjustment

      1        1        -   

Subtotal

      107        120        (13)  

Capital

         

Investments

    $      141      $      140      $ 1   

Unrealized capital gains (losses)

      65        102        (37)  

Other temporary differences

      1        1        -   

Subtotal

      207        243        (36)  

Deferred tax liabilities

      314        363        (49)  

Net deferred tax assets/liabilities

    $ 223      $ 346      $      (123 ) 

 

 39    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

The change in net deferred tax assets is comprised of the following:

 

     2023     2022     Change  

Adjusted gross deferred tax assets

   $ 543     $ 723     $ (180)  

Total deferred tax liabilities

          (314 )      (363 )            49   

Net deferred tax assets/ (liabilities)

     229            360       (131)  

Tax effect of unrealized gains (losses)

                     37   

Total change in net deferred tax

                   $ (168)  

Change in deferred tax - current year

         (125)  

Change in deferred tax - current year - other surplus items

                     (11)  

Change in deferred tax - current year - total

                     (136)  

Change in deferred tax – prior period correction

                     (31)  

Total change in deferred tax - current year

                   $ (168)  

The following table shows the components of opening surplus adjustments on current and deferred taxes for the year ended December 31, 2023:

     Current     Deferred     Total  

SSAP 3 impact:

      

SSAP 3 - general items

   $ (1 )    $ (4 )    $ (5)  

SSAP 3 - statutory valuation allowance

           -       (27 )      (27)  

Subtotal SSAP 3

     (1 )      (31 )      (32)  

SSAP 3 - unrealized gain/loss

     -             29             29   

SSAP 3 - adjusted tax assets and liabilities

     (1 )      (2 )      (3)  

SSAP 3 - nonadmitted impact

     -       (1 )      (1)  

Total SSAP 3 impact

   $ (1 )    $ (3 )    $ (4)  

 

 40    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

The provision for federal and foreign income taxes is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes. The following table presents a reconciliation of such differences in arriving at total taxes related to the Company for the years ended December 31, 2023, 2022 and 2021:

 

      2023             2022             2021  
Description    Amount     Tax Effect            Amount     Tax Effect            Amount     Tax Effect  

Net Income (Loss) Before Federal Income Taxes and Capital Gains Taxes

    $ 734     $ 154        $ 528     $ 111        $ 949     $ 199   

Book to Tax Adjustments:

                   

Tax Exempt Income, Net of Proration

      (6 )      (1 )         (8 )      (2 )         (9 )      (2)  

Stock Options And Other Compensation

      (4 )      (1 )         (3 )      (1 )         4       1   

Change in Nonadmitted Assets

      (9 )      (2 )         (34 )      (7 )         2       -   

Change in Other Surplus items

      49       10          88       18          31       7   

Intercompany Dividends

      (42 )      (9 )         (22 )      (5 )         (52 )      (11)  

Attribute Expiration

      -       -          -       5          -       10   

Change in Tax Position

      -       -          -       -          -       (1)  

Statutory Valuation Allowance

      -       (8 )         -       18          -       (25)  

Return to Provision

      -       -          -       1          -       (4)  

Lag Elimination Impact

      13       3          -       -          -       -   

Other

      4       2          4       2          2       1   

Total Book to Tax Adjustments

      5       (6 )         25       29          (22 )      (24)  

Total Income Tax

    $     739     $     148        $     553     $     140        $     927     $     175   

Federal and Foreign Income Taxes Incurred

      -       16          -       (24 )         -       (20)  

Federal Income Tax on Net Capital Gains

      -       (4 )         -       39          -       26   

Change in Net Deferred Income Taxes

      -       136          -       125          -       169   

Total Income Tax

    $ -     $ 148        $ -     $ 140        $ -     $ 175   

 

Operating loss and tax credit carry-forwards

   

At December 31, 2023 the Company had foreign tax credits expiring through the year 2033 of:

    $     28  

There were no deposits reported as admitted assets under Section 6603 of the Internal Revenue Service (IRS) Code as of December 31, 2023. The Company does not believe that the liability related to any federal or foreign tax loss contingencies will significantly change within the next 12 months. A reasonable estimate of such change cannot be made at this time.

As of December 31, 2023, there was a $3 liability related to tax return errors and omissions and a $17 liability related to uncertain tax positions.

The U.S. is the only major tax jurisdiction of the Company. The Company is currently under examination by the IRS for the tax years 2011 through 2019 and are engaging in the Appeals process for certain disagreed issues related to tax years 2007 through 2010.

The following table lists those companies that form part of the 2023 AIG consolidated federal income tax return:

 

   
 41    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

 

Company    Company    Company    Company    Company

 

AH SubGP 693 Parkland Pointe, LLC    AH SubGP 716 Villas of Mission Bend, LLC    AIG Aerospace Adjustment Services, Inc.    AIG Aerospace Insurance Services, Inc.    AIG Assurance Company
AIG BG Holdings LLC    AIG Capital Corporation    AIG Claims, Inc.    AIG Commercial Equipment Finance, Inc.    AIG Employee Services, Inc.
AIG FCOE, Inc.    AIG Federal Savings Bank    AIG Financial Products Corp.    AIG Global Operations (Ireland) Limited    AIG Home Protection Company, Inc.
AIG Insurance Management Services, Inc.    AIG International Inc.    AIG Liquidity Management LLC    AIG Markets, Inc.    AIG Matched Funding Corp.
AIG MEA Investments and Services, LLC    AIG MGU Holdings Inc.    AIG North America, Inc.    AIG PC Global Services Inc.    AIG Procurement Services, Inc.
AIG Property Casualty Company    AIG Property Casualty International, LLC    AIG Property Casualty U.S., Inc.    AIG Property Casualty, Inc.    AIG Securities Lending Corp.
AIG Shared Services    AIG Shared Services Corporation    AIG Shared Services Corporation - Management    AIG Shared Services Corporation (Philippines)    AIG Specialty Insurance Company
AIG Travel Assist, Inc.    AIG Travel, Inc.    AIG UNITED GUARANTY AGENZIA DI ASSICURAZIONE    AIG Warranty Services of Florida, Inc.    AIG WarrantyGuard, Inc.
AIG.COM, Inc.    AIG-FP Capital Preservation Corp.    AIG-FP Matched Funding Corp.    AIG-FP Pinestead Holdings Corp.    AIGGRE DC Ballpark Investor, LLC
AIGGRE Europe Real Estate Fund I    AIGGRE U.S. LT Apartments Investor Lexington    AIGGRE U.S. Real Estate Fund I    AIGGRE U.S. Real Estate Fund II    AIGGRE U.S. Real Estate Fund III
AIGGRE U.S. Real Estate Fund IV Lexington    AIGGRE U.S. Real Estate Fund IV Sidecar    AIGGRE VISTA, LLC    AIU Insurance Company    Akita, Inc.
AlphaCat Capital Inc.    AM Holdings LLC    American Home Assurance Company    American International Facilities Management    American International Group, Inc.
American International Reinsurance    Arthur J. Glatfelter Agency, Inc.    Blackboard Customer Care Insurance Services    Blackboard Insurance Company    Blackboard Services, LLC
Blackboard Specialty Insurance Company    Blackboard U.S. Holdings, Inc.    Commerce and Industry Insurance Company    Corebridge REI Bartlett Investor III LLC    Corebridge REI Lexington Holdco LLC
Corebridge REI Papermill Investor III LLC    Crop Risk Services, Inc.    Design Professionals Association    Eaglestone Reinsurance Company    First Principles Capital Management, LLC
GIG of Missouri, Inc.    Glatfelter Claims Management, Inc.    Glatfelter Properties, LLC    Glatfelter Underwriting Services, Inc.    Global Loss Prevention, Inc.
Global Loss Prevention, Inc. [Canada]    Granite State Insurance Company    Health Direct, Inc.    Illinois National Insurance Co.    LBMA Equipment Services, Inc.
Lexington Insurance Company    Lexington Specialty Insurance Agency, Inc.    Livetravel, Inc.    LSTREET I, LLC    LSTREET II, LLC
MG Reinsurance Limited    MIP PE Holdings, LLC    Morefar Marketing, Inc.    Mt. Mansfield Company, Inc.    National Union Fire Insurance
National Union Fire Insurance Company    New Hampshire Insurance Company    NF Seven (Cayman) Limited    PCG 2019 Corporate Member Limited    Pine Street Real Estate Holdings Corp.
Risk Specialists Companies    Service Net Solutions of Florida, LLC    SNW Insurance Agency, LLC    Spruce Peak Realty, LLC    Stowe Mountain Holdings, Inc.
Stratford Insurance Company    Susquehanna Agents Alliance, LLC    The Glatfelter Agency, Inc.    The Insurance Company of the State of Pennsylvania    Travel Guard Americas LLC Sucursal Mexico
Travel Guard Americas, LLC    Travel Guard Americas, LLC [Argentina]    Travel Guard Group, Inc.    Tudor Insurance Company    VALIC Trust Company
Validus America, Inc.    Validus Re Americas (New Jersey), Inc.    Validus Reaseguros, Inc.    Validus Services, Inc.    Validus Specialty Underwriting Services, Inc.
Validus Specialty, LLC    Volunteer Firemen’s Insurance Services, Inc.    Western World Insurance Company      

 

   
 42    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

9.

Capital and Surplus and Dividend Restrictions

 

 

A.

Dividend Restrictions

 

Under New York law, the Company may pay dividends only from Unassigned surplus determined on a statutory basis.

New York domiciled companies are restricted (on the basis of the lower of 10 percent of statutory earned surplus as defined in NY Insurance Law section 4105, adjusted for special surplus items, as of the last statement on file with the Superintendent, or 100 percent of adjusted net investment income for the preceding thirty-six month period ended as of the last statement on file with the Superintendent) as to the amount of ordinary dividends they may declare or pay in any twelve-month period without the prior approval of the NY DFS. The maximum dividend amount the Company can pay in 2023, as of December 31, 2023 is $483.

Other than the limitations above, there are no restrictions placed on the portion of Company profits that may be paid as ordinary dividends to the stockholders.

The Company paid the following dividends during 2023.

 

 

2023                    State approval

 

Date paid    Amount        Type of Dividend      Required        Obtained  

 

3/21/2023

    $     200          Ordinary      No      No

6/9/2023

      100          Ordinary      No      No

9/21/2023

      150          Ordinary      No      No

 

Total dividends paid

    $     450                   

 

The Company did not pay any dividends in 2022.

 

B.

Capital & Surplus

 

Changes in balances of special surplus funds are due to adjustments in the amounts of reserves transferred under retroactive reinsurance agreements and when cash recoveries exceed the consideration paid.

The portion of Unassigned surplus at December 31, 2023, 2023 and 2022 represented or reduced by each item below is as follows:

 

 

  
    2023    

As Adjusted *

2022

     2022  

 

  

Unrealized gains and losses (net of taxes)

   $      145     $       142     $       113   

Nonadmitted asset values

     (106 )      (107 )      (106)  

Provision for reinsurance

     (44 )      (37 )      (46)  

 

  

* As Adjusted includes SSAP 3 prior year adjustments

      

The Company exceeded minimum RBC requirements at both December 31, 2023 and 2022.

 

10.

Contingencies

 

 

A.

Legal Proceedings

 

In the normal course of business, AIG and its subsidiaries are, like others in the insurance and financial services industries in general, 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 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 AIG’s insurance and reinsurance operations, litigation and arbitration concerning the scope of coverage under insurance and reinsurance contracts, and litigation and arbitration in which its subsidiaries defend or indemnify their insureds under insurance contracts, are generally considered in the establishment of loss reserves. Separate and apart from the foregoing matters involving insurance and reinsurance coverage, AIG, its 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 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, the Company establishes 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, the Company is 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 has been recorded in its financial statements covering these matters. While such potential future charges could be material, based on information currently known to management, management does not

 

   
 43    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

believe, other than may be discussed below, that any such charges are likely to have a material adverse effect on the Company’s financial position or results of operation.

Additionally, from time to time, various regulatory and governmental agencies review the transactions and practices of AIG and its subsidiaries in connection with industry-wide and other inquiries into, among other matters, the business practices of current and former operating insurance subsidiaries. The Company has cooperated, and will continue to cooperate, in producing documents and other information in response to such requests.

B. Leases

 

 

Lease expenses are allocated to the Company based upon the percentage of space occupied with the final share of cost based upon its percentage participation in the Combined Pool.

C. Other Commitments

 

 

As part of its hedge fund, private equity and real estate equity portfolio investments, as of December 31, 2023, the Company may be called upon for additional capital investments of up to $486.

At December 31, 2023 the Company had $28 of outstanding commitments related to various funding obligations associated with investments in commercial and residential mortgage loans.

 

D.  

Guarantees

 

 

The Company had issued guarantees whereby it unconditionally and irrevocably guaranteed all present and future obligations and liabilities arising from the policies of insurance issued by certain insurers who, as of the guarantee issue date, were members of the AIG holding company group. The guarantees were provided in order to secure or maintain the guaranteed companies’ rating status issued by certain rating agencies. The Company would be required to perform under the guarantee in the event that a guaranteed entity failed to make payments due under policies of insurance issued during the period of the guarantee. The Company has not been required to perform under any of the guarantees. The Company remains contingently liable for all policyholder obligations associated with insurance policies issued by the guaranteed entity during the period in which the guarantee was in force.

Each guaranteed entity has reported invested assets in excess of their direct (prior to reinsurance) policyholder liabilities. Additionally, the Company is party to an agreement with AIG whereby AIG has agreed to make any payments due under the guarantees in the Company’s place and stead. Furthermore, for any former affiliate that has been sold, the purchaser has provided the Company with hold harmless agreements relative to the guarantee of the divested affiliate. Accordingly, management believes that the likelihood of payment under any of the guarantees is remote.

 

   
 44    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

The following schedule sets forth the effective and termination dates (agreements with guarantees in run off), of each guarantee, the amount of direct policyholder obligations guaranteed, the invested assets and policyholder surplus for each guaranteed entity as of December 31, 2023:

 

Guaranteed Company      Date Issued    Date

Terminated

   Policyholder

Obligations @

12/31/2023

   Invested Assets

@ 12/31/2023

   Estimated

Loss @

12/31/2023

  

 

 

   Policyholders’

Surplus

12/31/2023

                       

21st Century Advantage Insurance Company (f/k/a AIG Advantage Insurance Company )

     12/15/1997   8/31/2009   $   -   $   -   $     -       $   -

21st Century North America Insurance Company (f/k/a American International Insurance Company )

     11/5/1997   8/31/2009     10     642       -         655

21st Century Pinnacle Insurance Company (f/k/a American International Insurance Company of New Jersey)

     12/15/1997   8/31/2009     -     20       -         20

AIG Edison Life Insurance Company (f/k/a GE Edison Life Insurance Company)

     8/29/2003   3/31/2011     5,717     69,614       -         2,161

American General Life and Accident Insurance Company

   *   3/3/2003   9/30/2010     1,449     222,128       -         8,929

American General Life Insurance Company

   *   3/3/2003   12/29/2006     6,509     222,128       -         8,929

American International Assurance Company (Australia) Limited

   **   11/1/2002   10/31/2010     443     1,799       -         574

Chartis Europe, S.A. (f/k/a AIG Europe, S.A.)

   *   9/15/1998   12/31/2012     6,211     8,690       -         2,391

AIG Seguros Mexico, S.A. de C.V. (f/k/a AIG Mexico Seguros Interamericana, S.A. de C.V.)

   *   12/15/1997   3/31/2015     130     187       -         194

Chartis UK (f/k/a Landmark Insurance Company, Limited (UK))

   *   3/2/1998   11/30/2007     139     6,168       -         2,344

Farmers Insurance Hawaii (f/k/a AIG Hawaii Insurance Company, Inc.)

     11/5/1997   8/31/2009     -     23       -         26

Lloyd’s Syndicate (1414) Ascot (Ascot Underwriting Holdings Ltd.)

     1/20/2005   10/31/2007     2     1,700       -         134

SunAmerica Annuity and Life Assurance Company (Anchor National Life Insurance Company)

   *   1/4/1999   12/29/2006     566     222,128       -         8,929

SunAmerica Life Insurance Company

   *   1/4/1999   12/29/2006     1,817     222,128       -         8,929

The United States Life Insurance Company in the City of New York

   *   3/3/2003   4/30/2010     2,575     30,985       -         2,237

The Variable Annuity Life Insurance Company

   *   3/3/2003   12/29/2006       3,605       84,982         -           2,537
Total         $   29,173   $   1,093,322   $     -       $   48,989

* Current affiliates

**AIA was formerly as subsidiary of AIG, Inc. In previous years AIA provided the direct policyholder obligations as of each year end. However, starting in 2014 AIA declined to provide financial information related to these guarantees. The financial information reflects amounts as of December 31, 2012, at which time the guaranteed entities had invested assets in excess of direct policyholder obligations and were in a positive surplus position. Such amounts continue to remain the Company’s best estimate given available financial information. The guaranteed policyholder obligations will decline as the policies expire.

E. Joint and Several Liabilities

 

 

AIUI and the Company are jointly and severally obligated to the policyholders of their Japan branches, in connection with transfers of the business of those Japan branches to Japan-domiciled affiliates in 2013 and 2014, respectively. Under the terms of the transfer agreement, the Japan affiliates have agreed to be responsible for 100% of the obligations associated with such policies, and management expects such companies to satisfy their obligation. The Company carries no reserves with respect to such liabilities. The Japanese affiliates carried $4 and $7 of loss reserves in respect of such policies as of December 31, 2023 and 2022, respectively. As of December 31, 2023, if the Japan affiliates were to fail to satisfy their obligations, the Company’s share of the aggregate exposure under the pooling agreement is $2.

Each Pool member is also jointly and severally obligated to the other Pool members, in proportion to their pool share, in the event any other Pool member fails.

 

   
 45    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

11. Other Significant Matters

 

 

 

A.  

Other Assets

 

 

As of December 31, 2023 and 2022, other admitted assets as reported in the accompanying Statements of Admitted Assets were comprised of the following balances:

 

Other admitted assets     2023          2022  
Deposit accounting assets   $ 9        $ 9   
Equities in underwriting pools and associations     5          7  
Guaranty funds receivable on deposit     3          3  
Loss funds on deposit     86          84  
Contra Investments     30          46  
Other assets     50          16  

Total other admitted assets

   $        183        $        165  

 

B.  

Other Liabilities

 

 

As of December 31, 2023 and 2022, other liabilities as reported in the accompanying Statements of Liabilities, Capital and Surplus were comprised of the following balances:

 

Other liabilities     2023        2022  
Assumed Mortgage Guaranty Contingency Reserve   $ 189      $ 185  
Ceded Mortgage Guaranty Contingency Reserve     (189 )       (185 ) 
Escrow Deposit Liability     105        98  
Other accrued liabilities     138        97  
Retroactive reinsurance reserves - assumed     43        53  
Retroactive reinsurance reserves - ceded     (27 )       (22 ) 
Deferred commission earnings     79        85  
Escrow funds (NICO)     35        38  
Servicing carrier liability     9        8  
Collateral on derivative assets     17        25  
Paid loss clearing contra liability (loss reserve offset for paid claims)     (35 )       (43 ) 

Total other liabilities

   $        364      $        339  

 

C.  

Other (Expense) Income

 

 

For the years ended December 31, 2023, 2022 and 2021, other (expense) income as reported in the accompanying Statements of Operations and Changes in Capital and Surplus were comprised of the following balances:

 

Other (expense) income     2023          2022          2021  
Fee income on deposit programs   $        3        $        3        $        3  
Interest expense on reinsurance program     (29 )         (29 )         (79 ) 
Other income     7          7          2  

Total other expense

   $ (19 )       $ (19 )       $ (74 ) 

 

   
 46    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

D.  

Non-Cash items

 

 

For the years ended December 31, 2023, 2022 and 2021, the amounts reported in the Statements of Cash Flow are net of the following non-cash items:

 

Non-cash transactions    2023   2022   2021

Funds Held:

       

Premiums collected

      (8 )      (18 )      (18 ) 

Benefit and loss related payments

            23             39             44  

Interest

      (26 )      (30 )      (80 ) 

Commission and other expense paid

      9       10       15  

Funds held

      (1 )      2       (39 ) 

Securities received/transferred:

       

Securities received

      308       760       521  

Securities transferred

      (596 )      (430 )      (666 ) 

AESA Commutation:

       

Premiums collected

      -       -       -  

Benefit and loss related payments

      -       -       215  

Commissions

      -       -       -  

2021 Repooling Transaction:

       

Premiums collected

      -       -       121  

Miscellaneous income

      -       -       (28 ) 

Benefit and loss related payments

      -       -       717  

Commission and other expense paid

      -       -       46  

Net deposits

      -       -       (1 ) 

Other receipts

      -       -       163  

Securities transferred

      -       -       (1,018 ) 

 

E.  

Federal Home Loan Bank (“FHLB”) Agreements

 

 

The Company is a member of the FHLB of New York. Such membership requires ownership of stock in the FHLB. The Company owned an aggregate of $6 and $8 of stock in the FHLB at December 31, 2023 and 2022, respectively.

Through its membership, the Company has conducted business activity (borrowings) with the FHLB. The Company utilizes the FHLB facility to supplement liquidity or for other uses deemed appropriate by management. The outstanding borrowings are being used primarily for interest rate risk management purposes in connection with certain reinsurance arrangements, and the balances are expected to decline as underlying premiums are collected. The Company is required to pledge certain mortgage-backed securities, government and agency securities and other qualifying assets to secure advances obtained from the FHLB. The FHLB applies a haircut to collateral pledged to determine the amount of borrowing capacity it will provide to its member. As of December 31, 2023, the Company had an actual borrowing capacity of $1,122 based on qualified pledged collateral. At December 31, 2023, the Company had borrowings of $0 from the FHLB.

 

F.  

Insurance-Linked Securities

 

 

As of December 31, 2023 and 2022, the Company was not a ceding insurer in catastrophe bond reinsurance transactions in force.

 

   
 47    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.

Table of Contents

American Home Assurance Company

Statutory Basis Financial Statements

(Dollars in Millions)

 

 

 

12.

Subsequent Events

 

 

Subsequent events have been considered through April 23, 2024 for these Financial Statements issued on April 23, 2024.

Type I – Recognized Subsequent Events:

None.

Type II – Nonrecognized Subsequent Events:

Effective January 1, 2024, the Combined Pooling Agreement was amended and restated to include two new Pool members. The Company’s participation in the pool remained the same. The new pool participation percentages of the Pool members, as compared to those as of December 31, 2023, are as follows:

 

Company   

NAIC

Company

Code

   

Pool

Participation

Percentage as

of January 1,

2024

  

Pool

Participation

Percentage

as of December 31,

2023

  

State of

Domicile

National Union Fire Insurance Company of Pittsburgh, Pa. (National Union)*

    19445    35%   35%   Pennsylvania

American Home Assurance Company (American Home)

    19380    32%   32%   New York

Lexington Insurance Company (Lexington)

    19437    30%   30%   Delaware

Commerce and Industry Insurance Company (C&I)

    19410    3%   3%   New York

AIG Property Casualty Company (APCC)

    19402    0%   0%   Illinois

The Insurance Company of the State of Pennsylvania (ISOP)

    19429    0%   0%   Illinois

New Hampshire Insurance Company (New Hampshire)

    23841    0%   0%   Illinois

AIG Specialty Insurance Company (Specialty)

    26883    0%   0%   Illinois

AIG Assurance Company (Assurance)

    40258    0%   0%   Illinois

Granite State Insurance Company (Granite)

    23809    0%   0%   Illinois

Illinois National Insurance Co. (Illinois National)

    23817    0%   0%   Illinois

AIU Insurance Company (AIU)

    19399    0%   0%   New York

Blackboard Insurance Company (BIC)

    26611    0%   N/A   Delaware

Blackboard Specialty Insurance Company (BSIC)

    13551    0%   N/A   Delaware

* Lead Company of the Combined Pool

There were no changes to the Company’s Total Capital and Surplus on January 1, 2024 as a consequence of the amendment to the Combined Pooling Agreement.

 

   
 48    NOTES TO FINANCIAL STATEMENTS - As of December 31, 2023 and 2022 and for years ended December 31, 2023, 2022 and 2021.