Separate Account VL-R
American General Life Insurance Company
Financial Statements
December 31, 2023
Report of Independent Registered Public Accounting Firm
To the Board of Directors of American General Life Insurance Company and the Contract Owners of American General Life Insurance Company Separate Account VL-R.
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 subaccounts of American General Life Insurance Company Separate Account VL-R 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 American General Life Insurance Company Separate Account VL-R 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.
| AB VPS Balanced Hedged Allocation Portfolio Class A (1) | MFS VIT Growth Series Initial Class (1) | |
| AB VPS Intermediate Bond Portfolio Class A (2) | MFS VIT Investors Trust Series Initial Class (1) | |
| AB VPS Large Cap Growth Portfolio Class A (1) | MFS VIT New Discovery Series Initial Class (1) | |
| AB VPS Relative Value Portfolio Class A (1) | MFS VIT Research Series Initial Class (1) | |
| AB VPS Small Cap Growth Portfolio Class A (1) | MFS VIT Total Return Series Initial Class (1) | |
| AB VPS Sustainable Global Thematic Growth Portfolio Class A (1) | MFS VIT Utilities Series Initial Class (1) | |
| Alger Capital Appreciation Portfolio Class I-2 (1) | MFS VIT II Core Equity Portfolio Initial Class (1) | |
| Alger Mid Cap Growth Portfolio Class I-2 (1) | Morgan Stanley VIF Growth Portfolio Class I (1) | |
| American Century VP Capital Appreciation Fund Class I (1) | Neuberger Berman AMT Mid Cap Growth Portfolio Class I (1) | |
| American Century VP Disciplined Core Value Fund Class I (1) | Neuberger Berman AMT Short Duration Bond Portfolio Class I (1) | |
| American Century VP Value Fund Class I (1) | Neuberger Berman AMT Sustainable Equity Portfolio Class I (1) | |
| American Funds IS American High-Income Trust Class 2 (1) | PIMCO CommodityRealReturn Strategy Portfolio Administrative Class (1) | |
| American Funds IS Asset Allocation Fund Class 2 (1) | PIMCO Global Bond Opportunities Portfolio (Unhedged) Administrative Class (1) | |
| American Funds IS Global Growth Fund Class 2 (1) | PIMCO Real Return Portfolio Administrative Class (1) | |
| American Funds IS Growth Fund Class 2 (1) | PIMCO Short-Term Portfolio Administrative Class (1) | |
| American Funds IS Growth-Income Fund Class 2 (1) | PIMCO Total Return Portfolio Administrative Class (1) | |
| American Funds IS International Fund Class 2 (1) | Pioneer Fund VCT Portfolio Class I (1) | |
| BNY Mellon IP MidCap Stock Portfolio Initial Shares (1) | Pioneer Mid Cap Value VCT Portfolio Class I (1) | |
| BNY Mellon Stock Index Fund, Inc. Initial Shares (1) | Pioneer Select Mid Cap Growth VCT Portfolio Class I (1) | |
| BNY Mellon VIF Opportunistic Small Cap Portfolio Initial Shares (1) | Putnam VT Diversified Income Fund Class IB (1) | |
| EQ/Core Plus Bond Portfolio Class IA (1) | Putnam VT International Value Fund Class IB (1) | |
| EQ/Moderate Allocation Portfolio Class IA (1) | Putnam VT Large Cap Growth Fund Class IB(1) | |
| EQ Advisors Multimanager Aggressive Equity Portfolio Class IA (1) | Putnam VT Large Cap Value Fund Class IB (1) | |
| EQ/Common Stock Index Portfolio Class IA (1) | Putnam VT Small Cap Value Fund Class IB (1) | |
| EQ/International Equity Index Portfolio Class IA (1) | Putnam VT Sustainable Leaders Fund Class IB (1) | |
| EQ/Money Market Portfolio Class IA (1) | SST SA Multi-Managed Mid Cap Value Portfolio Class 3 (1) | |
| Fidelity VIP Asset Manager Growth Portfolio Initial Class (1) | SAST SA AB Growth Portfolio Class 1 (1) | |
| Fidelity VIP Asset Manager Portfolio Initial Class (1) | SAST SA DFA Ultra Short Bond Portfolio Class 1 (1) | |
| Fidelity VIP Asset Manager Portfolio Service Class 2 (1) | SAST SA Federated Hermes Corporate Bond Portfolio Class 1 (1) | |
| Fidelity VIP Contrafund Portfolio Initial Class (1) | SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1 (1) | |
| Fidelity VIP Contrafund Portfolio Service Class 2 (1) | SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1 (1) | |
| Fidelity VIP Equity-Income Portfolio Initial Class (1) | SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1 (1) | |
| Fidelity VIP Equity-Income Portfolio Service Class 2 (1) | SAST SA Goldman Sachs Global Bond Portfolio Class 1 (1) | |
| Fidelity VIP Freedom 2020 Portfolio Service Class 2 (1) | SAST SA Invesco Growth Opportunities Portfolio Class 1 (1) | |
| Fidelity VIP Freedom 2025 Portfolio Service Class 2 (1) | SAST SA Janus Focused Growth Portfolio Class 1 (1) | |
| Fidelity VIP Freedom 2030 Portfolio Service Class 2 (1) | SAST SA JPMorgan Diversified Balanced Portfolio Class 1 (1) | |
| Fidelity VIP Government Money Market Portfolio Initial Class (1) | SAST SA JPMorgan Emerging Markets Portfolio Class 1 (1) | |
| Fidelity VIP Government Money Market Portfolio Service Class 2 (1) | SAST SA JPMorgan Equity-Income Portfolio Class 1 (1) | |
| Fidelity VIP Growth Portfolio Initial Class (1) | SAST SA JPMorgan Global Equities Portfolio Class 1 (1) | |
| Fidelity VIP Growth Portfolio Service Class 2 (1) | SAST SA JPMorgan Large Cap Core Portfolio Class 1 (1) | |
| Fidelity VIP High Income Portfolio Initial Class (1) | SAST SA JPMorgan MFS Core Bond Portfolio Class 1 (1) | |
| Fidelity VIP Index 500 Portfolio Initial Class (1) | SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1 (1) | |
| Fidelity VIP Investment Grade Bond Portfolio Initial Class (1) | SAST SA MFS Blue Chip Growth Portfolio Class 1 (1) | |
| Fidelity VIP Mid Cap Portfolio Service Class 2 (1) | SAST SA MFS Massachusetts Investors Trust Portfolio Class 1 (1) | |
| Fidelity VIP Overseas Portfolio Initial Class (1) | SAST SA MFS Total Return Portfolio Class 1 (1) | |
| FTVIP Franklin Mutual Shares VIP Fund Class 2 (1) | SAST SA Morgan Stanley International Equities Portfolio Class 1 (1) | |
| FTVIP Franklin Small Cap Value VIP Fund Class 2 (1) | SAST SA PineBridge High-Yield Bond Portfolio Class 1 (1) | |
| FTVIP Franklin Small-Mid Cap Growth VIP Fund Class 2 (1) | SAST SA Putnam International Growth and Income Portfolio Class 1 (1) | |
| FTVIP Franklin U.S. Government Securities VIP Fund Class 2 (1) | SAST SA Wellington Capital Appreciation Portfolio Class 1 (1) | |
| FTVIP Templeton Foreign VIP Fund Class 2 (1) | SAST SA Wellington Capital Appreciation Portfolio Class 3 (1) |
| Goldman Sachs VIT Strategic Growth Fund Institutional Shares (1) | SAST SA Wellington Government and Quality Bond Portfolio Class 1 (1) | |||
| Invesco V.I. American Franchise Fund Series I (1) | SAST SA Wellington Government and Quality Bond Portfolio Class 3 (1) | |||
| Invesco V.I. Conservative Balanced Fund Series I (1) | VALIC Company I Core Bond Fund (1) | |||
| Invesco V.I. Core Equity Fund Series I (1) | VALIC Company I Dynamic Allocation Fund (1) | |||
| Invesco V.I. EQV International Equity Fund Series 1 (1) | VALIC Company I Emerging Economies Fund (1) | |||
| Invesco V.I. Global Fund Series I (1) | VALIC Company I Government Money Market I Fund (3) | |||
| Invesco V.I. Global Real Estate Fund Series I (1) | VALIC Company I International Equities Index Fund (1) | |||
| Invesco V.I. Global Strategic Income Fund Series I (1) | VALIC Company I International Value Fund (1) | |||
| Invesco V.I. Government Securities Fund Series I (1) | VALIC Company I Mid Cap Index Fund (1) | |||
| Invesco V.I. Growth and Income Fund Series I (1) | VALIC Company I Mid Cap Value Fund (1) | |||
| Invesco V.I. High Yield Fund Series I (1) | VALIC Company I Nasdaq-100 Index Fund (1) | |||
| Invesco V.I. Main Street Fund Series I (1) | VALIC Company I Science & Technology Fund (1) | |||
| Janus Henderson Enterprise Portfolio Service Shares (1) | VALIC Company I Small Cap Index Fund (1) | |||
| Janus Henderson Forty Portfolio Service Shares (1) | VALIC Company I Stock Index Fund (1) | |||
| Janus Henderson Global Research Portfolio Service Shares (1) | VALIC Company I U.S. Socially Responsible Fund (1) | |||
| Janus Henderson Overseas Portfolio Service Shares (1) | VanEck VIP Emerging Markets Fund Initial Class (1) | |||
| LVIP JPMorgan Core Bond Fund Standard Class (1) | VanEck VIP Global Resources Fund Initial Class (1) | |||
| LVIP JPMorgan Mid Cap Value Fund Standard Class (1) | Vanguard VIF High Yield Bond Portfolio (1) | |||
| LVIP JPMorgan Small Cap Core Fund Standard Class (1) | Vanguard VIF Real Estate Index Portfolio (1) | |||
| LVIP JPMorgan U.S. Equity Fund Standard Class (1) | ||||
| (1) | Statement of Operations and Changes in Net Assets for the years ended December 31, 2023 and 2022 | |||
| (2) | Statement of Operations and Changes in Net Assets for the period January 1, 2022 to March 3, 2022 (cessation of operations) | |||
| (3) | Statement of Operations and Changes in Net Assets for the period January 1, 2022 to July 22, 2022 (cessation of operations) | |||
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 American General Life Insurance Company Separate Account VL-R 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 American General Life Insurance Company Separate Account VL-R 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.
|
PricewaterhouseCoopers LLP, 1000 Louisiana Street, Suite 5800, Houston, TX 77002-5021 |
| T: (713) 356 4000, www.pwc.com/us |
2
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2023
| Sub-accounts |
Investments at Fair Value |
Due from (to) Account, Net |
Net Assets | |||||||||
| AB VPS Balanced Hedged Allocation Portfolio Class A |
$ | 188,744 | $ | — | $ | 188,744 | ||||||
| AB VPS Large Cap Growth Portfolio Class A |
39,344,165 | — | 39,344,165 | |||||||||
| AB VPS Relative Value Portfolio Class A |
1,834,508 | — | 1,834,508 | |||||||||
| AB VPS Small Cap Growth Portfolio Class A |
577,851 | — | 577,851 | |||||||||
| AB VPS Sustainable Global Thematic Growth Portfolio Class A |
1,462,630 | — | 1,462,630 | |||||||||
| Alger Capital Appreciation Portfolio Class I-2 |
12,576,420 | — | 12,576,420 | |||||||||
| Alger Mid Cap Growth Portfolio Class I-2 |
3,607,858 | — | 3,607,858 | |||||||||
| American Century VP Capital Appreciation Fund Class I |
345,852 | — | 345,852 | |||||||||
| American Century VP Disciplined Core Value Fund Class I |
172,501 | — | 172,501 | |||||||||
| American Century VP Value Fund Class I |
16,984,738 | — | 16,984,738 | |||||||||
| American Funds IS American High-Income Trust Class 2 |
1,481,566 | — | 1,481,566 | |||||||||
| American Funds IS Asset Allocation Fund Class 2 |
10,250,507 | — | 10,250,507 | |||||||||
| American Funds IS Global Growth Fund Class 2 |
3,314,933 | — | 3,314,933 | |||||||||
| American Funds IS Growth Fund Class 2 |
8,894,876 | — | 8,894,876 | |||||||||
| American Funds IS Growth-Income Fund Class 2 |
8,594,232 | — | 8,594,232 | |||||||||
| American Funds IS International Fund Class 2 |
2,256,767 | — | 2,256,767 | |||||||||
| BNY Mellon IP MidCap Stock Portfolio Initial Shares |
4,323,011 | — | 4,323,011 | |||||||||
| BNY Mellon Stock Index Fund, Inc. Initial Shares |
6,716,936 | — | 6,716,936 | |||||||||
| BNY Mellon VIF Opportunistic Small Cap Portfolio Initial Shares |
7,946,155 | — | 7,946,155 | |||||||||
| EQ Advisors Multimanager Aggressive Equity Portfolio Class IA |
580,581 | — | 580,581 | |||||||||
| EQ/Common Stock Index Portfolio Class IA |
2,175,935 | — | 2,175,935 | |||||||||
| EQ/Core Plus Bond Portfolio Class IA |
13,290 | — | 13,290 | |||||||||
| EQ/International Equity Index Portfolio Class IA |
149,153 | — | 149,153 | |||||||||
| EQ/Moderate Allocation Portfolio Class IA |
349,416 | — | 349,416 | |||||||||
| EQ/Money Market Portfolio Class IA |
9,891 | — | 9,891 | |||||||||
| Fidelity VIP Asset Manager Growth Portfolio Initial Class |
6,213,627 | — | 6,213,627 | |||||||||
| Fidelity VIP Asset Manager Portfolio Initial Class |
11,276,137 | — | 11,276,137 | |||||||||
| Fidelity VIP Asset Manager Portfolio Service Class 2 |
3,981,443 | — | 3,981,443 | |||||||||
| Fidelity VIP Contrafund Portfolio Initial Class |
51,473,694 | — | 51,473,694 | |||||||||
| Fidelity VIP Contrafund Portfolio Service Class 2 |
44,559,339 | — | 44,559,339 | |||||||||
| Fidelity VIP Equity-Income Portfolio Initial Class |
32,924,330 | — | 32,924,330 | |||||||||
| Fidelity VIP Equity-Income Portfolio Service Class 2 |
20,100,332 | — | 20,100,332 | |||||||||
| Fidelity VIP Freedom 2020 Portfolio Service Class 2 |
249,564 | — | 249,564 | |||||||||
| Fidelity VIP Freedom 2025 Portfolio Service Class 2 |
543,182 | — | 543,182 | |||||||||
| Fidelity VIP Freedom 2030 Portfolio Service Class 2 |
3,227,390 | — | 3,227,390 | |||||||||
| Fidelity VIP Government Money Market Portfolio Initial Class |
13,606,233 | — | 13,606,233 | |||||||||
| Fidelity VIP Government Money Market Portfolio Service Class 2 |
1,237,632 | — | 1,237,632 | |||||||||
| Fidelity VIP Growth Portfolio Initial Class |
91,750,214 | — | 91,750,214 | |||||||||
| Fidelity VIP Growth Portfolio Service Class 2 |
35,350,351 | — | 35,350,351 | |||||||||
| Fidelity VIP High Income Portfolio Initial Class |
1,752,456 | — | 1,752,456 | |||||||||
| Fidelity VIP Index 500 Portfolio Initial Class |
47,608,913 | — | 47,608,913 | |||||||||
| Fidelity VIP Investment Grade Bond Portfolio Initial Class |
2,327,647 | — | 2,327,647 | |||||||||
| Fidelity VIP Mid Cap Portfolio Service Class 2 |
12,443,229 | — | 12,443,229 | |||||||||
| Fidelity VIP Overseas Portfolio Initial Class |
6,788,611 | — | 6,788,611 | |||||||||
| FTVIP Franklin Mutual Shares VIP Fund Class 2 |
6,799,905 | — | 6,799,905 | |||||||||
| FTVIP Franklin Small Cap Value VIP Fund Class 2 |
9,089,305 | — | 9,089,305 | |||||||||
| FTVIP Franklin Small-Mid Cap Growth VIP Fund Class 2 |
22,309 | — | 22,309 | |||||||||
| FTVIP Franklin U.S. Government Securities VIP Fund Class 2 |
1,685,386 | — | 1,685,386 | |||||||||
| FTVIP Templeton Foreign VIP Fund Class 2 |
3,572,813 | — | 3,572,813 | |||||||||
| Goldman Sachs VIT Strategic Growth Fund Institutional Shares |
4,776,354 | — | 4,776,354 | |||||||||
| Invesco V.I. American Franchise Fund Series I |
794,244 | — | 794,244 | |||||||||
| Invesco V.I. Conservative Balanced Fund Series I |
1,306,789 | — | 1,306,789 | |||||||||
| Invesco V.I. Core Equity Fund Series I |
9,246,249 | — | 9,246,249 | |||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
3 |
SEPARATE ACCOUNT VL-R
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 | |||||||||
| Invesco V.I. EQV International Equity Fund Series 1 |
$ | 8,301,079 | $ | — | $ | 8,301,079 | ||||||
| Invesco V.I. Global Fund Series I |
9,830,694 | — | 9,830,694 | |||||||||
| Invesco V.I. Global Real Estate Fund Series I |
698,260 | — | 698,260 | |||||||||
| Invesco V.I. Global Strategic Income Fund Series I |
297 | — | 297 | |||||||||
| Invesco V.I. Government Securities Fund Series I |
7,820 | — | 7,820 | |||||||||
| Invesco V.I. Growth and Income Fund Series I |
11,468,772 | — | 11,468,772 | |||||||||
| Invesco V.I. High Yield Fund Series I |
754,940 | — | 754,940 | |||||||||
| Invesco V.I. Main Street Fund Series I |
851,162 | — | 851,162 | |||||||||
| Janus Henderson Enterprise Portfolio Service Shares |
8,288,785 | — | 8,288,785 | |||||||||
| Janus Henderson Forty Portfolio Service Shares |
1,932,102 | — | 1,932,102 | |||||||||
| Janus Henderson Global Research Portfolio Service Shares |
3,841,714 | — | 3,841,714 | |||||||||
| Janus Henderson Overseas Portfolio Service Shares |
6,338,991 | — | 6,338,991 | |||||||||
| LVIP JPMorgan Core Bond Fund Standard Class |
3,870,983 | — | 3,870,983 | |||||||||
| LVIP JPMorgan Mid Cap Value Fund Standard Class |
403,118 | — | 403,118 | |||||||||
| LVIP JPMorgan Small Cap Core Fund Standard Class |
4,150,901 | — | 4,150,901 | |||||||||
| LVIP JPMorgan U.S. Equity Fund Standard Class |
516,233 | — | 516,233 | |||||||||
| MFS VIT Growth Series Initial Class |
34,237,784 | — | 34,237,784 | |||||||||
| MFS VIT Investors Trust Series Initial Class |
3,235,159 | — | 3,235,159 | |||||||||
| MFS VIT New Discovery Series Initial Class |
8,001,599 | — | 8,001,599 | |||||||||
| MFS VIT Research Series Initial Class |
10,503,553 | — | 10,503,553 | |||||||||
| MFS VIT Total Return Series Initial Class |
4,552,864 | — | 4,552,864 | |||||||||
| MFS VIT Utilities Series Initial Class |
7,149,523 | — | 7,149,523 | |||||||||
| MFS VIT II Core Equity Portfolio Initial Class |
14,612,625 | — | 14,612,625 | |||||||||
| Morgan Stanley VIF Growth Portfolio Class I |
6,135,226 | — | 6,135,226 | |||||||||
| Neuberger Berman AMT Mid Cap Growth Portfolio Class I |
7,564,253 | — | 7,564,253 | |||||||||
| Neuberger Berman AMT Short Duration Bond Portfolio Class I |
41,245 | — | 41,245 | |||||||||
| Neuberger Berman AMT Sustainable Equity Portfolio Class I |
554,824 | — | 554,824 | |||||||||
| PIMCO CommodityRealReturn Strategy Portfolio Administrative Class |
936,672 | — | 936,672 | |||||||||
| PIMCO Global Bond Opportunities Portfolio (Unhedged) Administrative Class |
489,354 | — | 489,354 | |||||||||
| PIMCO Real Return Portfolio Administrative Class |
6,732,434 | — | 6,732,434 | |||||||||
| PIMCO Short-Term Portfolio Administrative Class |
4,253,818 | — | 4,253,818 | |||||||||
| PIMCO Total Return Portfolio Administrative Class |
12,484,572 | — | 12,484,572 | |||||||||
| Pioneer Fund VCT Portfolio Class I |
2,044,450 | — | 2,044,450 | |||||||||
| Pioneer Mid Cap Value VCT Portfolio Class I |
1,173,478 | — | 1,173,478 | |||||||||
| Pioneer Select Mid Cap Growth VCT Portfolio Class I |
3,186,266 | — | 3,186,266 | |||||||||
| Putnam VT Diversified Income Fund Class IB |
4,521,734 | — | 4,521,734 | |||||||||
| Putnam VT International Value Fund Class IB |
4,213,433 | — | 4,213,433 | |||||||||
| Putnam VT Large Cap Growth Fund Class IB |
93,541 | — | 93,541 | |||||||||
| Putnam VT Large Cap Value Fund Class IB |
17,432,817 | — | 17,432,817 | |||||||||
| Putnam VT Small Cap Value Fund Class IB |
150,940 | — | 150,940 | |||||||||
| Putnam VT Sustainable Leaders Fund Class IB |
111,075 | — | 111,075 | |||||||||
| SST SA Multi-Managed Mid Cap Value Portfolio Class 3 |
181,264 | — | 181,264 | |||||||||
| SAST SA AB Growth Portfolio Class 1 |
9,117,898 | — | 9,117,898 | |||||||||
| SAST SA DFA Ultra Short Bond Portfolio Class 1 |
1,325,035 | — | 1,325,035 | |||||||||
| SAST SA Federated Hermes Corporate Bond Portfolio Class 1 |
188,118 | — | 188,118 | |||||||||
| SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1 |
271,823 | — | 271,823 | |||||||||
| SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1 |
2,751,212 | — | 2,751,212 | |||||||||
| SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1 |
517,347 | — | 517,347 | |||||||||
| SAST SA Goldman Sachs Global Bond Portfolio Class 1 |
157,250 | — | 157,250 | |||||||||
| SAST SA Invesco Growth Opportunities Portfolio Class 1 |
131,569 | — | 131,569 | |||||||||
| SAST SA Janus Focused Growth Portfolio Class 1 |
1,078,618 | — | 1,078,618 | |||||||||
| SAST SA JPMorgan Diversified Balanced Portfolio Class 1 |
4,742,111 | — | 4,742,111 | |||||||||
| SAST SA JPMorgan Emerging Markets Portfolio Class 1 |
302,838 | — | 302,838 | |||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
4 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2023
| Sub-accounts | Investments at Fair Value |
Due from (to) Account, Net |
Net Assets | |||||||||
| SAST SA JPMorgan Equity-Income Portfolio Class 1 |
$ | 3,213,399 | $ | — | $ | 3,213,399 | ||||||
| SAST SA JPMorgan Global Equities Portfolio Class 1 |
362,880 | — | 362,880 | |||||||||
| SAST SA JPMorgan Large Cap Core Portfolio Class 1 |
439,750 | — | 439,750 | |||||||||
| SAST SA JPMorgan MFS Core Bond Portfolio Class 1 |
72,359 | — | 72,359 | |||||||||
| SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1 |
8,549,125 | — | 8,549,125 | |||||||||
| SAST SA MFS Blue Chip Growth Portfolio Class 1 |
75,136 | — | 75,136 | |||||||||
| SAST SA MFS Massachusetts Investors Trust Portfolio Class 1 |
636,680 | — | 636,680 | |||||||||
| SAST SA MFS Total Return Portfolio Class 1 |
802,628 | — | 802,628 | |||||||||
| SAST SA Morgan Stanley International Equities Portfolio Class 1 |
378,154 | — | 378,154 | |||||||||
| SAST SA PineBridge High-Yield Bond Portfolio Class 1 |
306,407 | — | 306,407 | |||||||||
| SAST SA Putnam International Growth and Income Portfolio Class 1 |
514,955 | — | 514,955 | |||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 1 |
5,531,983 | — | 5,531,983 | |||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 3 |
1,064,673 | — | 1,064,673 | |||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 1 |
265,815 | — | 265,815 | |||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 3 |
597,231 | — | 597,231 | |||||||||
| VALIC Company I Core Bond Fund |
445,111 | 10,434 | 455,545 | |||||||||
| VALIC Company I Dynamic Allocation Fund |
9,095,538 | — | 9,095,538 | |||||||||
| VALIC Company I Emerging Economies Fund |
519,107 | — | 519,107 | |||||||||
| VALIC Company I International Equities Index Fund |
4,735,953 | — | 4,735,953 | |||||||||
| VALIC Company I International Value Fund |
218,881 | — | 218,881 | |||||||||
| VALIC Company I Mid Cap Index Fund |
17,903,847 | — | 17,903,847 | |||||||||
| VALIC Company I Mid Cap Value Fund |
277,198 | — | 277,198 | |||||||||
| VALIC Company I Nasdaq-100 Index Fund |
12,349,293 | — | 12,349,293 | |||||||||
| VALIC Company I Science & Technology Fund |
6,625,232 | — | 6,625,232 | |||||||||
| VALIC Company I Small Cap Index Fund |
9,097,938 | — | 9,097,938 | |||||||||
| VALIC Company I Stock Index Fund |
28,152,592 | — | 28,152,592 | |||||||||
| VALIC Company I U.S. Socially Responsible Fund |
220,245 | — | 220,245 | |||||||||
| VanEck VIP Emerging Markets Fund Initial Class |
126,680 | — | 126,680 | |||||||||
| VanEck VIP Global Resources Fund Initial Class |
264,839 | — | 264,839 | |||||||||
| Vanguard VIF High Yield Bond Portfolio |
5,705,616 | — | 5,705,616 | |||||||||
| Vanguard VIF Real Estate Index Portfolio |
13,152,940 | — | 13,152,940 | |||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
5 |
SEPARATE ACCOUNT VL-R
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* | |||||||||||||
| AB VPS Balanced Hedged Allocation Portfolio Class A |
21,497 | $ | 8.78 | $ | 188,744 | $ | 215,070 | 1 | ||||||||||
| AB VPS Large Cap Growth Portfolio Class A |
528,110 | 74.50 | 39,344,165 | 34,784,336 | 1 | |||||||||||||
| AB VPS Relative Value Portfolio Class A |
62,187 | 29.50 | 1,834,508 | 1,808,217 | 1 | |||||||||||||
| AB VPS Small Cap Growth Portfolio Class A |
53,804 | 10.74 | 577,851 | 816,754 | 1 | |||||||||||||
| AB VPS Sustainable Global Thematic Growth Portfolio Class A |
44,095 | 33.17 | 1,462,630 | 1,300,282 | 1 | |||||||||||||
| Alger Capital Appreciation Portfolio Class I-2 |
160,783 | 78.22 | 12,576,420 | 12,671,891 | 1 | |||||||||||||
| Alger Mid Cap Growth Portfolio Class I-2 |
214,116 | 16.85 | 3,607,858 | 4,779,370 | 1 | |||||||||||||
| American Century VP Capital Appreciation Fund Class I |
24,322 | 14.22 | 345,852 | 347,989 | 1 | |||||||||||||
| American Century VP Disciplined Core Value Fund Class I |
22,490 | 7.67 | 172,501 | 203,342 | 1 | |||||||||||||
| American Century VP Value Fund Class I |
1,393,334 | 12.19 | 16,984,738 | 16,070,420 | 1 | |||||||||||||
| American Funds IS American High-Income Trust Class 2 |
169,710 | 8.73 | 1,481,566 | 1,590,042 | 1 | |||||||||||||
| American Funds IS Asset Allocation Fund Class 2 |
435,636 | 23.53 | 10,250,507 | 10,672,086 | 1 | |||||||||||||
| American Funds IS Global Growth Fund Class 2 |
99,131 | 33.44 | 3,314,933 | 3,337,163 | 1 | |||||||||||||
| American Funds IS Growth Fund Class 2 |
90,579 | 98.20 | 8,894,876 | 8,400,186 | 1 | |||||||||||||
| American Funds IS Growth-Income Fund Class 2 |
147,414 | 58.30 | 8,594,232 | 7,478,324 | 1 | |||||||||||||
| American Funds IS International Fund Class 2 |
129,625 | 17.41 | 2,256,767 | 2,473,134 | 1 | |||||||||||||
| BNY Mellon IP MidCap Stock Portfolio Initial Shares |
231,425 | 18.68 | 4,323,011 | 4,298,392 | 1 | |||||||||||||
| BNY Mellon Stock Index Fund, Inc. Initial Shares |
97,234 | 69.08 | 6,716,936 | 4,943,743 | 1 | |||||||||||||
| BNY Mellon VIF Opportunistic Small Cap Portfolio Initial Shares |
189,510 | 41.93 | 7,946,155 | 8,483,331 | 1 | |||||||||||||
| EQ Advisors Multimanager Aggressive Equity Portfolio Class IA |
8,690 | 66.81 | 580,581 | 616,345 | 1 | |||||||||||||
| EQ/Common Stock Index Portfolio Class IA |
50,441 | 43.14 | 2,175,935 | 1,623,302 | 1 | |||||||||||||
| EQ/Core Plus Bond Portfolio Class IA |
3,796 | 3.50 | 13,290 | 14,740 | 1 | |||||||||||||
| EQ/International Equity Index Portfolio Class IA |
13,902 | 10.73 | 149,153 | 127,810 | 1 | |||||||||||||
| EQ/Moderate Allocation Portfolio Class IA |
29,206 | 11.96 | 349,416 | 332,842 | 1 | |||||||||||||
| EQ/Money Market Portfolio Class IA |
9,884 | 1.00 | 9,891 | 9,890 | 1 | |||||||||||||
| Fidelity VIP Asset Manager Growth Portfolio Initial Class |
290,221 | 21.41 | 6,213,627 | 5,284,164 | 1 | |||||||||||||
| Fidelity VIP Asset Manager Portfolio Initial Class |
720,981 | 15.64 | 11,276,137 | 10,652,364 | 1 | |||||||||||||
| Fidelity VIP Asset Manager Portfolio Service Class 2 |
262,975 | 15.14 | 3,981,443 | 4,003,626 | 1 | |||||||||||||
| Fidelity VIP Contrafund Portfolio Initial Class |
1,058,476 | 48.63 | 51,473,694 | 37,470,628 | 1 | |||||||||||||
| Fidelity VIP Contrafund Portfolio Service Class 2 |
951,513 | 46.83 | 44,559,339 | 38,965,329 | 1 | |||||||||||||
| Fidelity VIP Equity-Income Portfolio Initial Class |
1,324,923 | 24.85 | 32,924,330 | 29,750,136 | 1 | |||||||||||||
| Fidelity VIP Equity-Income Portfolio Service Class 2 |
840,666 | 23.91 | 20,100,332 | 19,602,696 | 1 | |||||||||||||
| Fidelity VIP Freedom 2020 Portfolio Service Class 2 |
20,126 | 12.40 | 249,564 | 269,791 | 1 | |||||||||||||
| Fidelity VIP Freedom 2025 Portfolio Service Class 2 |
36,188 | 15.01 | 543,182 | 555,359 | 1 | |||||||||||||
| Fidelity VIP Freedom 2030 Portfolio Service Class 2 |
211,632 | 15.25 | 3,227,390 | 3,037,667 | 1 | |||||||||||||
| Fidelity VIP Government Money Market Portfolio Initial Class |
13,606,233 | 1.00 | 13,606,233 | 13,606,233 | 1 | |||||||||||||
| Fidelity VIP Government Money Market Portfolio Service Class 2 |
1,237,632 | 1.00 | 1,237,632 | 1,237,632 | 1 | |||||||||||||
| Fidelity VIP Growth Portfolio Initial Class |
985,502 | 93.10 | 91,750,214 | 74,599,545 | 1 | |||||||||||||
| Fidelity VIP Growth Portfolio Service Class 2 |
393,131 | 89.92 | 35,350,351 | 32,910,649 | 1 | |||||||||||||
| Fidelity VIP High Income Portfolio Initial Class |
380,969 | 4.60 | 1,752,456 | 1,971,889 | 1 | |||||||||||||
| Fidelity VIP Index 500 Portfolio Initial Class |
103,096 | 461.79 | 47,608,913 | 19,919,459 | 1 | |||||||||||||
| Fidelity VIP Investment Grade Bond Portfolio Initial Class |
208,384 | 11.17 | 2,327,647 | 2,657,576 | 1 | |||||||||||||
| Fidelity VIP Mid Cap Portfolio Service Class 2 |
358,698 | 34.69 | 12,443,229 | 12,007,482 | 1 | |||||||||||||
| Fidelity VIP Overseas Portfolio Initial Class |
262,921 | 25.82 | 6,788,611 | 5,238,501 | 1 | |||||||||||||
| FTVIP Franklin Mutual Shares VIP Fund Class 2 |
443,569 | 15.33 | 6,799,905 | 7,209,676 | 1 | |||||||||||||
| FTVIP Franklin Small Cap Value VIP Fund Class 2 |
684,951 | 13.27 | 9,089,305 | 9,251,385 | 1 | |||||||||||||
| FTVIP Franklin Small-Mid Cap Growth VIP Fund Class 2 |
1,675 | 13.32 | 22,309 | 23,447 | 1 | |||||||||||||
| FTVIP Franklin U.S. Government Securities VIP Fund Class 2 |
162,682 | 10.36 | 1,685,386 | 1,802,864 | 1 | |||||||||||||
| FTVIP Templeton Foreign VIP Fund Class 2 |
250,900 | 14.24 | 3,572,813 | 3,296,427 | 1 | |||||||||||||
| Goldman Sachs VIT Strategic Growth Fund Institutional Shares |
380,889 | 12.54 | 4,776,354 | 4,524,318 | 1 | |||||||||||||
| Invesco V.I. American Franchise Fund Series I |
13,471 | 58.96 | 794,244 | 792,221 | 1 | |||||||||||||
| Invesco V.I. Conservative Balanced Fund Series I |
85,077 | 15.36 | 1,306,789 | 1,366,521 | 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.
|
6 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
SCHEDULE OF PORTFOLIO INVESTMENTS
December 31, 2023
| Sub-accounts | Shares |
Net Asset Share |
Shares at Fair Value |
Cost of Shares Held |
Level* | |||||||||||||
| Invesco V.I. Core Equity Fund Series I |
315,679 | $ | 29.29 | $ | 9,246,249 | $ | 9,596,011 | 1 | ||||||||||
| Invesco V.I. EQV International Equity Fund Series 1 |
243,505 | 34.09 | 8,301,079 | 8,465,250 | 1 | |||||||||||||
| Invesco V.I. Global Fund Series I |
268,892 | 36.56 | 9,830,694 | 10,455,385 | 1 | |||||||||||||
| Invesco V.I. Global Real Estate Fund Series I |
49,947 | 13.98 | 698,260 | 709,796 | 1 | |||||||||||||
| Invesco V.I. Global Strategic Income Fund Series I |
69 | 4.29 | 297 | 277 | 1 | |||||||||||||
| Invesco V.I. Government Securities Fund Series I |
758 | 10.32 | 7,820 | 8,141 | 1 | |||||||||||||
| Invesco V.I. Growth and Income Fund Series I |
608,100 | 18.86 | 11,468,772 | 11,577,988 | 1 | |||||||||||||
| Invesco V.I. High Yield Fund Series I |
160,968 | 4.69 | 754,940 | 807,120 | 1 | |||||||||||||
| Invesco V.I. Main Street Fund Series I |
46,716 | 18.22 | 851,162 | 1,028,128 | 1 | |||||||||||||
| Janus Henderson Enterprise Portfolio Service Shares |
121,234 | 68.37 | 8,288,785 | 8,806,526 | 1 | |||||||||||||
| Janus Henderson Forty Portfolio Service Shares |
45,472 | 42.49 | 1,932,102 | 1,795,076 | 1 | |||||||||||||
| Janus Henderson Global Research Portfolio Service Shares |
65,092 | 59.02 | 3,841,714 | 3,634,518 | 1 | |||||||||||||
| Janus Henderson Overseas Portfolio Service Shares |
158,158 | 40.08 | 6,338,991 | 5,248,968 | 1 | |||||||||||||
| LVIP JPMorgan Core Bond Fund Standard Class |
391,998 | 9.88 | 3,870,983 | 4,351,658 | 1 | |||||||||||||
| LVIP JPMorgan Mid Cap Value Fund Standard Class |
39,626 | 10.17 | 403,118 | 411,427 | 1 | |||||||||||||
| LVIP JPMorgan Small Cap Core Fund Standard Class |
209,124 | 19.85 | 4,150,901 | 4,293,233 | 1 | |||||||||||||
| LVIP JPMorgan U.S. Equity Fund Standard Class |
13,720 | 37.63 | 516,233 | 415,979 | 1 | |||||||||||||
| MFS VIT Growth Series Initial Class |
567,885 | 60.29 | 34,237,784 | 31,779,103 | 1 | |||||||||||||
| MFS VIT Investors Trust Series Initial Class |
89,891 | 35.99 | 3,235,159 | 2,673,439 | 1 | |||||||||||||
| MFS VIT New Discovery Series Initial Class |
618,362 | 12.94 | 8,001,599 | 9,823,052 | 1 | |||||||||||||
| MFS VIT Research Series Initial Class |
328,544 | 31.97 | 10,503,553 | 9,720,038 | 1 | |||||||||||||
| MFS VIT Total Return Series Initial Class |
195,738 | 23.26 | 4,552,864 | 4,615,623 | 1 | |||||||||||||
| MFS VIT Utilities Series Initial Class |
221,691 | 32.25 | 7,149,523 | 7,682,542 | 1 | |||||||||||||
| MFS VIT II Core Equity Portfolio Initial Class |
528,104 | 27.67 | 14,612,625 | 13,460,496 | 1 | |||||||||||||
| Morgan Stanley VIF Growth Portfolio Class I |
459,568 | 13.35 | 6,135,226 | 8,494,789 | 1 | |||||||||||||
| Neuberger Berman AMT Mid Cap Growth Portfolio Class I |
284,050 | 26.63 | 7,564,253 | 8,510,997 | 1 | |||||||||||||
| Neuberger Berman AMT Short Duration Bond Portfolio Class I |
4,279 | 9.64 | 41,245 | 44,436 | 1 | |||||||||||||
| Neuberger Berman AMT Sustainable Equity Portfolio Class I |
16,636 | 33.35 | 554,824 | 444,294 | 1 | |||||||||||||
| PIMCO CommodityRealReturn Strategy Portfolio Administrative Class |
175,079 | 5.35 | 936,672 | 1,187,684 | 1 | |||||||||||||
| PIMCO Global Bond Opportunities Portfolio (Unhedged) Administrative Class |
50,868 | 9.62 | 489,354 | 551,395 | 1 | |||||||||||||
| PIMCO Real Return Portfolio Administrative Class |
581,887 | 11.57 | 6,732,434 | 7,297,605 | 1 | |||||||||||||
| PIMCO Short-Term Portfolio Administrative Class |
415,818 | 10.23 | 4,253,818 | 4,278,203 | 1 | |||||||||||||
| PIMCO Total Return Portfolio Administrative Class |
1,359,975 | 9.18 | 12,484,572 | 13,952,538 | 1 | |||||||||||||
| Pioneer Fund VCT Portfolio Class I |
127,698 | 16.01 | 2,044,450 | 1,901,399 | 1 | |||||||||||||
| Pioneer Mid Cap Value VCT Portfolio Class I |
104,775 | 11.20 | 1,173,478 | 1,326,173 | 1 | |||||||||||||
| Pioneer Select Mid Cap Growth VCT Portfolio Class I |
144,699 | 22.02 | 3,186,266 | 3,716,084 | 1 | |||||||||||||
| Putnam VT Diversified Income Fund Class IB |
972,416 | 4.65 | 4,521,734 | 5,419,502 | 1 | |||||||||||||
| Putnam VT International Value Fund Class IB |
358,285 | 11.76 | 4,213,433 | 3,698,684 | 1 | |||||||||||||
| Putnam VT Large Cap Growth Fund Class IB |
6,939 | 13.48 | 93,541 | 81,462 | 1 | |||||||||||||
| Putnam VT Large Cap Value Fund Class IB |
604,886 | 28.82 | 17,432,817 | 15,634,168 | 1 | |||||||||||||
| Putnam VT Small Cap Value Fund Class IB |
13,206 | 11.43 | 150,940 | 137,389 | 1 | |||||||||||||
| Putnam VT Sustainable Leaders Fund Class IB |
2,805 | 39.60 | 111,075 | 111,998 | 1 | |||||||||||||
| SST SA Multi-Managed Mid Cap Value Portfolio Class 3 |
11,422 | 15.87 | 181,264 | 193,804 | 1 | |||||||||||||
| SAST SA AB Growth Portfolio Class 1 |
166,872 | 54.64 | 9,117,898 | 8,045,721 | 1 | |||||||||||||
| SAST SA DFA Ultra Short Bond Portfolio Class 1 |
124,768 | 10.62 | 1,325,035 | 1,327,628 | 1 | |||||||||||||
| SAST SA Federated Hermes Corporate Bond Portfolio Class 1 |
16,259 | 11.57 | 188,118 | 211,693 | 1 | |||||||||||||
| SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1 |
22,558 | 12.05 | 271,823 | 326,013 | 1 | |||||||||||||
| SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1 |
152,760 | 18.01 | 2,751,212 | 3,005,728 | 1 | |||||||||||||
| SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1 |
47,117 | 10.98 | 517,347 | 588,106 | 1 | |||||||||||||
| SAST SA Goldman Sachs Global Bond Portfolio Class 1 |
16,535 | 9.51 | 157,250 | 178,219 | 1 | |||||||||||||
| SAST SA Invesco Growth Opportunities Portfolio Class 1 |
21,187 | 6.21 | 131,569 | 173,376 | 1 | |||||||||||||
| SAST SA Janus Focused Growth Portfolio Class 1 |
64,511 | 16.72 | 1,078,618 | 933,917 | 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.
|
7 |
SEPARATE ACCOUNT VL-R
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 JPMorgan Diversified Balanced Portfolio Class 1 |
266,710 | $ | 17.78 | $ | 4,742,111 | $ | 4,916,765 | 1 | ||||||||||
| SAST SA JPMorgan Emerging Markets Portfolio Class 1 |
41,146 | 7.36 | 302,838 | 335,819 | 1 | |||||||||||||
| SAST SA JPMorgan Equity-Income Portfolio Class 1 |
100,987 | 31.82 | 3,213,399 | 3,334,823 | 1 | |||||||||||||
| SAST SA JPMorgan Global Equities Portfolio Class 1 |
19,220 | 18.88 | 362,880 | 361,490 | 1 | |||||||||||||
| SAST SA JPMorgan Large Cap Core Portfolio Class 1 |
21,152 | 20.79 | 439,750 | 430,567 | 1 | |||||||||||||
| SAST SA JPMorgan MFS Core Bond Portfolio Class 1 |
8,900 | 8.13 | 72,359 | 77,448 | 1 | |||||||||||||
| SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1 |
503,779 | 16.97 | 8,549,125 | 10,457,409 | 1 | |||||||||||||
| SAST SA MFS Blue Chip Growth Portfolio Class 1 |
5,417 | 13.87 | 75,136 | 66,338 | 1 | |||||||||||||
| SAST SA MFS Massachusetts Investors Trust Portfolio Class 1 |
30,522 | 20.86 | 636,680 | 654,050 | 1 | |||||||||||||
| SAST SA MFS Total Return Portfolio Class 1 |
44,940 | 17.86 | 802,628 | 833,327 | 1 | |||||||||||||
| SAST SA Morgan Stanley International Equities Portfolio Class 1 |
39,639 | 9.54 | 378,154 | 380,595 | 1 | |||||||||||||
| SAST SA PineBridge High-Yield Bond Portfolio Class 1 |
59,497 | 5.15 | 306,407 | 326,066 | 1 | |||||||||||||
| SAST SA Putnam International Growth and Income Portfolio Class 1 |
44,779 | 11.50 | 514,955 | 486,274 | 1 | |||||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 1 |
172,929 | 31.99 | 5,531,983 | 6,802,132 | 1 | |||||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 3 |
42,844 | 24.85 | 1,064,673 | 1,298,549 | 1 | |||||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 1 |
20,153 | 13.19 | 265,815 | 299,631 | 1 | |||||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 3 |
45,382 | 13.16 | 597,231 | 697,830 | 1 | |||||||||||||
| VALIC Company I Core Bond Fund |
44,511 | 10.00 | 445,111 | 485,152 | 1 | |||||||||||||
| VALIC Company I Dynamic Allocation Fund |
913,207 | 9.96 | 9,095,538 | 10,367,219 | 1 | |||||||||||||
| VALIC Company I Emerging Economies Fund |
88,736 | 5.85 | 519,107 | 696,522 | 1 | |||||||||||||
| VALIC Company I International Equities Index Fund |
590,518 | 8.02 | 4,735,953 | 4,375,421 | 1 | |||||||||||||
| VALIC Company I International Value Fund |
21,976 | 9.96 | 218,881 | 210,718 | 1 | |||||||||||||
| VALIC Company I Mid Cap Index Fund |
691,802 | 25.88 | 17,903,847 | 17,894,859 | 1 | |||||||||||||
| VALIC Company I Mid Cap Value Fund |
14,713 | 18.84 | 277,198 | 275,472 | 1 | |||||||||||||
| VALIC Company I Nasdaq-100 Index Fund |
529,558 | 23.32 | 12,349,293 | 10,999,664 | 1 | |||||||||||||
| VALIC Company I Science & Technology Fund |
268,663 | 24.66 | 6,625,232 | 7,013,445 | 1 | |||||||||||||
| VALIC Company I Small Cap Index Fund |
608,151 | 14.96 | 9,097,938 | 10,741,520 | 1 | |||||||||||||
| VALIC Company I Stock Index Fund |
550,178 | 51.17 | 28,152,592 | 25,868,911 | 1 | |||||||||||||
| VALIC Company I U.S. Socially Responsible Fund |
11,394 | 19.33 | 220,245 | 226,772 | 1 | |||||||||||||
| VanEck VIP Emerging Markets Fund Initial Class |
13,755 | 9.21 | 126,680 | 155,827 | 1 | |||||||||||||
| VanEck VIP Global Resources Fund Initial Class |
9,960 | 26.59 | 264,839 | 219,102 | 1 | |||||||||||||
| Vanguard VIF High Yield Bond Portfolio |
774,168 | 7.37 | 5,705,616 | 5,803,484 | 1 | |||||||||||||
| Vanguard VIF Real Estate Index Portfolio |
1,103,435 | 11.92 | 13,152,940 | 13,475,248 | 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 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| AB VPS Balanced Hedged Allocation Portfolio Class A |
AB VPS Intermediate Bond Portfolio Class A |
AB VPS Large Cap Growth Portfolio Class A |
AB VPS Relative Value Portfolio Class A |
AB VPS Small Cap Class A |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 2,140 | $ | — | $ | — | $ | 26,176 | $ | — | ||||||||||
| Mortality and expense risk and administrative charges |
(904 | ) | — | (168,813 | ) | (8,779 | ) | (2,780 | ) | |||||||||||
| Net investment income (loss) |
1,236 | — | (168,813 | ) | 17,397 | (2,780 | ) | |||||||||||||
| Net realized gain (loss) |
(10,316 | ) | — | 67,054 | 26,258 | (25,060 | ) | |||||||||||||
| Capital gain distribution from mutual funds |
9,232 | — | 2,296,477 | 137,651 | — | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
21,161 | — | 7,909,394 | 12,626 | 117,510 | |||||||||||||||
| Increase (decrease) in net assets from operations |
21,313 | — | 10,104,112 | 193,932 | 89,670 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
14,604 | — | 110,662 | 84,056 | 15,436 | |||||||||||||||
| Payments for contract benefits or terminations |
(9,813 | ) | — | (49,388 | ) | (77,307 | ) | (29,535 | ) | |||||||||||
| Policy loans |
(120 | ) | — | 22,195 | 3,611 | (7,487 | ) | |||||||||||||
| Transfers between sub-accounts (including fixed account), net |
157 | — | 19,664 | 347 | 29 | |||||||||||||||
| Contract maintenance charges |
(15,069 | ) | — | (227,907 | ) | (140,456 | ) | (20,597 | ) | |||||||||||
| Increase (decrease) in net assets from contract transactions |
(10,241 | ) | — | (124,774 | ) | (129,749 | ) | (42,154 | ) | |||||||||||
| Increase (decrease) in net assets |
11,072 | — | 9,979,338 | 64,183 | 47,516 | |||||||||||||||
| Net assets at beginning of period |
177,672 | — | 29,364,827 | 1,770,325 | 530,335 | |||||||||||||||
| Net assets at end of period |
$ | 188,744 | $ | — | $ | 39,344,165 | $ | 1,834,508 | $ | 577,851 | ||||||||||
| Beginning units |
9,103 | — | 502,708 | 18,596 | 10,800 | |||||||||||||||
| Units issued |
916 | — | 2,814 | 1,282 | 618 | |||||||||||||||
| Units redeemed |
(1,421 | ) | — | (4,783 | ) | (2,590 | ) | (1,398 | ) | |||||||||||
| Ending units |
8,598 | — | 500,739 | 17,288 | 10,020 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 6,534 | $ | — | $ | — | $ | 24,894 | $ | — | ||||||||||
| Mortality and expense risk and administrative charges |
(976 | ) | (20 | ) | (158,695 | ) | (8,854 | ) | (3,020 | ) | ||||||||||
| Net investment income (loss) |
5,558 | (20 | ) | (158,695 | ) | 16,040 | (3,020 | ) | ||||||||||||
| Net realized gain (loss) |
(3,665 | ) | (1,679 | ) | 67,835 | 37,990 | (6,882 | ) | ||||||||||||
| Capital gain distribution from mutual funds |
19,367 | — | 3,837,779 | 283,335 | 245,816 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(64,630 | ) | 683 | (15,685,245 | ) | (428,257 | ) | (581,428 | ) | |||||||||||
| Increase (decrease) in net assets from operations |
(43,370 | ) | (1,016 | ) | (11,938,326 | ) | (90,892 | ) | (345,514 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
11,083 | 53 | 127,435 | 101,939 | 21,038 | |||||||||||||||
| Payments for contract benefits or terminations |
(106 | ) | — | (37,589 | ) | (25,596 | ) | — | ||||||||||||
| Policy loans |
(112 | ) | 150 | 514 | 13,036 | 563 | ||||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(21 | ) | (22,379 | ) | 51,635 | 2,298 | (1,272 | ) | ||||||||||||
| Contract maintenance charges |
(14,914 | ) | (611 | ) | (214,331 | ) | (142,840 | ) | (21,574 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(4,070 | ) | (22,787 | ) | (72,336 | ) | (51,163 | ) | (1,245 | ) | ||||||||||
| Increase (decrease) in net assets |
(47,440 | ) | (23,803 | ) | (12,010,662 | ) | (142,055 | ) | (346,759 | ) | ||||||||||
| Net assets at beginning of period |
225,112 | 23,803 | 41,375,489 | 1,912,380 | 877,094 | |||||||||||||||
| Net assets at end of period |
$ | 177,672 | $ | — | $ | 29,364,827 | $ | 1,770,325 | $ | 530,335 | ||||||||||
| Beginning units |
9,297 | 1,519 | 504,202 | 19,151 | 10,824 | |||||||||||||||
| Units issued |
597 | 92 | 3,938 | 1,370 | 422 | |||||||||||||||
| Units redeemed |
(791 | ) | (1,611 | ) | (5,432 | ) | (1,925 | ) | (446 | ) | ||||||||||
| Ending units |
9,103 | — | 502,708 | 18,596 | 10,800 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
9 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| AB VPS Sustainable Global Thematic Growth Portfolio Class A |
Alger Capital Appreciation Portfolio Class I-2 |
Alger Mid Cap Growth Portfolio Class I-2 |
American Century Appreciation Fund Class I |
American Century VP Disciplined Core Value Fund Class I |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 4,028 | $ | — | $ | — | $ | — | $ | 2,478 | ||||||||||
| Mortality and expense risk and administrative charges |
(5,449 | ) | (35,431 | ) | (12,193 | ) | (317 | ) | (159 | ) | ||||||||||
| Net investment income (loss) |
(1,421 | ) | (35,431 | ) | (12,193 | ) | (317 | ) | 2,319 | |||||||||||
| Net realized gain (loss) |
47,467 | (826,499 | ) | (307,318 | ) | (3,683 | ) | (1,591 | ) | |||||||||||
| Capital gain distribution from mutual funds |
83,339 | — | — | 456 | — | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
71,530 | 4,846,844 | 994,318 | 63,221 | 12,952 | |||||||||||||||
| Increase (decrease) in net assets from operations |
200,915 | 3,984,914 | 674,807 | 59,677 | 13,680 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
63,679 | 461,010 | 202,801 | 8,612 | 8,260 | |||||||||||||||
| Payments for contract benefits or terminations |
(45,355 | ) | (614,524 | ) | (86,686 | ) | (3,813 | ) | — | |||||||||||
| Policy loans |
11,617 | (17,070 | ) | (12,348 | ) | 462 | 388 | |||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(16,442 | ) | (207,483 | ) | (6,764 | ) | 24 | (11 | ) | |||||||||||
| Contract maintenance charges |
(74,525 | ) | (360,492 | ) | (202,493 | ) | (13,041 | ) | (7,442 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(61,026 | ) | (738,559 | ) | (105,490 | ) | (7,756 | ) | 1,195 | |||||||||||
| Increase (decrease) in net assets |
139,889 | 3,246,355 | 569,317 | 51,921 | 14,875 | |||||||||||||||
| Net assets at beginning of period |
1,322,741 | 9,330,065 | 3,038,541 | 293,931 | 157,626 | |||||||||||||||
| Net assets at end of period |
$ | 1,462,630 | $ | 12,576,420 | $ | 3,607,858 | $ | 345,852 | $ | 172,501 | ||||||||||
| Beginning units |
44,985 | 311,250 | 139,141 | 7,691 | 4,861 | |||||||||||||||
| Units issued |
3,132 | 135,177 | 65,942 | 262 | 269 | |||||||||||||||
| Units redeemed |
(4,563 | ) | (153,900 | ) | (71,181 | ) | (447 | ) | (229 | ) | ||||||||||
| Ending units |
43,554 | 292,527 | 133,902 | 7,506 | 4,901 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | — | $ | — | $ | — | $ | — | $ | 3,048 | ||||||||||
| Mortality and expense risk and administrative charges |
(5,841 | ) | (39,041 | ) | (13,643 | ) | (315 | ) | (175 | ) | ||||||||||
| Net investment income (loss) |
(5,841 | ) | (39,041 | ) | (13,643 | ) | (315 | ) | 2,873 | |||||||||||
| Net realized gain (loss) |
86,283 | (332,684 | ) | (223,611 | ) | (3,653 | ) | (4,408 | ) | |||||||||||
| Capital gain distribution from mutual funds |
143,580 | 837,569 | 109,164 | 44,588 | 44,797 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(763,540 | ) | (5,929,576 | ) | (1,678,997 | ) | (157,259 | ) | (68,753 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(539,518 | ) | (5,463,732 | ) | (1,807,087 | ) | (116,639 | ) | (25,491 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
90,672 | 450,751 | 154,436 | 8,193 | 7,370 | |||||||||||||||
| Payments for contract benefits or terminations |
(57,463 | ) | (325,160 | ) | (115,295 | ) | — | (6,106 | ) | |||||||||||
| Policy loans |
(9,122 | ) | 111,317 | (33,666 | ) | (589 | ) | (1,204 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(50,379 | ) | (345,513 | ) | (18,112 | ) | (20 | ) | (13,136 | ) | ||||||||||
| Contract maintenance charges |
(90,741 | ) | (360,140 | ) | (159,135 | ) | (12,092 | ) | (8,129 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(117,033 | ) | (468,745 | ) | (171,772 | ) | (4,508 | ) | (21,205 | ) | ||||||||||
| Increase (decrease) in net assets |
(656,551 | ) | (5,932,477 | ) | (1,978,859 | ) | (121,147 | ) | (46,696 | ) | ||||||||||
| Net assets at beginning of period |
1,979,292 | 15,262,542 | 5,017,400 | 415,078 | 204,322 | |||||||||||||||
| Net assets at end of period |
$ | 1,322,741 | $ | 9,330,065 | $ | 3,038,541 | $ | 293,931 | $ | 157,626 | ||||||||||
| Beginning units |
48,510 | 317,031 | 145,839 | 7,801 | 5,493 | |||||||||||||||
| Units issued |
3,842 | 61,509 | 14,063 | 261 | 235 | |||||||||||||||
| Units redeemed |
(7,367 | ) | (67,290 | ) | (20,761 | ) | (371 | ) | (867 | ) | ||||||||||
| Ending units |
44,985 | 311,250 | 139,141 | 7,691 | 4,861 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
10 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| American Century VP Value Fund Class I |
American Funds IS American High- Income Trust Class 2 |
American Funds IS Fund Class 2 |
American Funds IS Global Growth Fund Class 2 |
American Funds IS Growth Fund Class 2 |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 391,195 | $ | 98,488 | $ | 213,977 | $ | 27,754 | $ | 28,289 | ||||||||||
| Mortality and expense risk and administrative charges |
(48,294 | ) | (3,606 | ) | (25,128 | ) | (7,574 | ) | (19,368 | ) | ||||||||||
| Net investment income (loss) |
342,901 | 94,882 | 188,849 | 20,180 | 8,921 | |||||||||||||||
| Net realized gain (loss) |
368,434 | (6,536 | ) | (7,666 | ) | 44,822 | 106,444 | |||||||||||||
| Capital gain distribution from mutual funds |
1,292,143 | — | 362,610 | 233,438 | 433,434 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(606,952 | ) | 70,098 | 709,577 | 314,276 | 1,932,321 | ||||||||||||||
| Increase (decrease) in net assets from operations |
1,396,526 | 158,444 | 1,253,370 | 612,716 | 2,481,120 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
570,779 | 129,474 | 732,968 | 266,187 | 898,183 | |||||||||||||||
| Payments for contract benefits or terminations |
(617,387 | ) | (4,584 | ) | (34,369 | ) | (58,256 | ) | (50,795 | ) | ||||||||||
| Policy loans |
(22,497 | ) | 389 | 4,167 | 3,241 | 12,035 | ||||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(159,633 | ) | 20,894 | 50,555 | (76,829 | ) | (264,538 | ) | ||||||||||||
| Contract maintenance charges |
(715,334 | ) | (102,269 | ) | (746,729 | ) | (223,012 | ) | (713,842 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(944,072 | ) | 43,904 | 6,592 | (88,669 | ) | (118,957 | ) | ||||||||||||
| Increase (decrease) in net assets |
452,454 | 202,348 | 1,259,962 | 524,047 | 2,362,163 | |||||||||||||||
| Net assets at beginning of period |
16,532,284 | 1,279,218 | 8,990,545 | 2,790,886 | 6,532,713 | |||||||||||||||
| Net assets at end of period |
$ | 16,984,738 | $ | 1,481,566 | $ | 10,250,507 | $ | 3,314,933 | $ | 8,894,876 | ||||||||||
| Beginning units |
544,184 | 105,538 | 624,816 | 169,450 | 326,979 | |||||||||||||||
| Units issued |
73,709 | 14,722 | 53,892 | 16,234 | 58,108 | |||||||||||||||
| Units redeemed |
(105,516 | ) | (11,412 | ) | (55,416 | ) | (21,877 | ) | (64,605 | ) | ||||||||||
| Ending units |
512,377 | 108,848 | 623,292 | 163,807 | 320,482 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 345,565 | $ | 102,881 | $ | 177,542 | $ | 19,664 | $ | 23,480 | ||||||||||
| Mortality and expense risk and administrative charges |
(57,570 | ) | (3,537 | ) | (24,932 | ) | (7,129 | ) | (18,143 | ) | ||||||||||
| Net investment income (loss) |
287,995 | 99,344 | 152,610 | 12,535 | 5,337 | |||||||||||||||
| Net realized gain (loss) |
1,229,449 | (13,670 | ) | 55,206 | 17,948 | 182,385 | ||||||||||||||
| Capital gain distribution from mutual funds |
1,325,714 | — | 964,518 | 321,680 | 1,027,542 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(2,785,668 | ) | (226,535 | ) | (2,615,891 | ) | (1,225,521 | ) | (3,957,382 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
57,490 | (140,861 | ) | (1,443,557 | ) | (873,358 | ) | (2,742,118 | ) | |||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
602,331 | 136,815 | 717,328 | 302,112 | 932,091 | |||||||||||||||
| Payments for contract benefits or terminations |
(348,195 | ) | (163 | ) | (9,635 | ) | (6,360 | ) | (61,342 | ) | ||||||||||
| Policy loans |
(91,630 | ) | (5,505 | ) | (2,738 | ) | (4,368 | ) | (10,637 | ) | ||||||||||
| Transfers between sub-accounts (including fixed account), net |
(604,228 | ) | (88,335 | ) | (174,275 | ) | 147,664 | (74,591 | ) | |||||||||||
| Contract maintenance charges |
(690,839 | ) | (111,017 | ) | (797,724 | ) | (249,788 | ) | (794,673 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(1,132,561 | ) | (68,205 | ) | (267,044 | ) | 189,260 | (9,152 | ) | |||||||||||
| Increase (decrease) in net assets |
(1,075,071 | ) | (209,066 | ) | (1,710,601 | ) | (684,098 | ) | (2,751,270 | ) | ||||||||||
| Net assets at beginning of period |
17,607,355 | 1,488,284 | 10,701,146 | 3,474,984 | 9,283,983 | |||||||||||||||
| Net assets at end of period |
$ | 16,532,284 | $ | 1,279,218 | $ | 8,990,545 | $ | 2,790,886 | $ | 6,532,713 | ||||||||||
| Beginning units |
584,309 | 111,292 | 644,305 | 158,913 | 322,442 | |||||||||||||||
| Units issued |
251,878 | 12,618 | 50,906 | 30,531 | 58,783 | |||||||||||||||
| Units redeemed |
(292,003 | ) | (18,372 | ) | (70,395 | ) | (19,994 | ) | (54,246 | ) | ||||||||||
| Ending units |
544,184 | 105,538 | 624,816 | 169,450 | 326,979 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
11 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| American Funds IS Growth-Income Fund Class 2 |
American Funds IS International Fund Class 2 |
BNY Mellon IP MidCap Stock Portfolio Initial Shares |
BNY Mellon Stock Index Fund, Inc. Initial Shares |
BNY Mellon VIF Opportunistic Small Cap Portfolio Initial Shares |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 106,926 | $ | 28,031 | $ | 31,732 | $ | 86,777 | $ | 23,852 | ||||||||||
| Mortality and expense risk and administrative charges |
(19,259 | ) | (5,249 | ) | (9,711 | ) | (20,401 | ) | (17,498 | ) | ||||||||||
| Net investment income (loss) |
87,667 | 22,782 | 22,021 | 66,376 | 6,354 | |||||||||||||||
| Net realized gain (loss) |
54,784 | (33,394 | ) | (111,421 | ) | 121,842 | (107,607 | ) | ||||||||||||
| Capital gain distribution from mutual funds |
402,300 | — | 127,576 | 220,610 | 160,764 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
1,222,755 | 310,362 | 669,077 | 974,718 | 528,398 | |||||||||||||||
| Increase (decrease) in net assets from operations |
1,767,506 | 299,750 | 707,253 | 1,383,546 | 587,909 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
884,616 | 270,089 | 153,440 | 136,653 | 316,558 | |||||||||||||||
| Payments for contract benefits or terminations |
(43,927 | ) | (26,355 | ) | (223,268 | ) | (48,552 | ) | (228,378 | ) | ||||||||||
| Policy loans |
11,729 | 57 | (2,860 | ) | 8,001 | (26,977 | ) | |||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(249,683 | ) | 3,173 | (47,759 | ) | 6,116 | 533,292 | |||||||||||||
| Contract maintenance charges |
(613,895 | ) | (189,575 | ) | (194,460 | ) | (276,205 | ) | (419,960 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(11,160 | ) | 57,389 | (314,907 | ) | (173,987 | ) | 174,535 | ||||||||||||
| Increase (decrease) in net assets |
1,756,346 | 357,139 | 392,346 | 1,209,559 | 762,444 | |||||||||||||||
| Net assets at beginning of period |
6,837,886 | 1,899,628 | 3,930,665 | 5,507,377 | 7,183,711 | |||||||||||||||
| Net assets at end of period |
$ | 8,594,232 | $ | 2,256,767 | $ | 4,323,011 | $ | 6,716,936 | $ | 7,946,155 | ||||||||||
| Beginning units |
390,488 | 177,889 | 143,420 | 101,035 | 271,452 | |||||||||||||||
| Units issued |
45,894 | 27,953 | 38,462 | 2,429 | 70,425 | |||||||||||||||
| Units redeemed |
(47,396 | ) | (23,006 | ) | (49,049 | ) | (4,593 | ) | (68,472 | ) | ||||||||||
| Ending units |
388,986 | 182,836 | 132,833 | 98,871 | 273,405 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 91,847 | $ | 34,979 | $ | 30,468 | $ | 80,247 | $ | — | ||||||||||
| Mortality and expense risk and administrative charges |
(17,907 | ) | (4,947 | ) | (13,173 | ) | (20,300 | ) | (24,703 | ) | ||||||||||
| Net investment income (loss) |
73,940 | 30,032 | 17,295 | 59,947 | (24,703 | ) | ||||||||||||||
| Net realized gain (loss) |
65,968 | (23,127 | ) | (172,363 | ) | 175,735 | (362,079 | ) | ||||||||||||
| Capital gain distribution from mutual funds |
694,343 | 270,676 | 1,027,710 | 516,733 | 1,668,952 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(2,200,242 | ) | (754,026 | ) | (1,573,116 | ) | (2,057,198 | ) | (2,748,919 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(1,365,991 | ) | (476,445 | ) | (700,474 | ) | (1,304,783 | ) | (1,466,749 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
891,452 | 283,386 | 154,195 | 155,086 | 311,942 | |||||||||||||||
| Payments for contract benefits or terminations |
(37,037 | ) | (18,441 | ) | (211,075 | ) | (95,354 | ) | (215,673 | ) | ||||||||||
| Policy loans |
(11,153 | ) | (716 | ) | (34,386 | ) | (14,618 | ) | 123,833 | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(174,090 | ) | 78,260 | (5,206 | ) | (18,046 | ) | (130,831 | ) | |||||||||||
| Contract maintenance charges |
(694,695 | ) | (209,421 | ) | (201,825 | ) | (279,473 | ) | (413,520 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(25,523 | ) | 133,068 | (298,297 | ) | (252,405 | ) | (324,249 | ) | |||||||||||
| Increase (decrease) in net assets |
(1,391,514 | ) | (343,377 | ) | (998,771 | ) | (1,557,188 | ) | (1,790,998 | ) | ||||||||||
| Net assets at beginning of period |
8,229,400 | 2,243,005 | 4,929,436 | 7,064,565 | 8,974,709 | |||||||||||||||
| Net assets at end of period |
$ | 6,837,886 | $ | 1,899,628 | $ | 3,930,665 | $ | 5,507,377 | $ | 7,183,711 | ||||||||||
| Beginning units |
392,333 | 166,122 | 155,754 | 104,950 | 285,336 | |||||||||||||||
| Units issued |
51,227 | 37,212 | 33,573 | 3,087 | 176,215 | |||||||||||||||
| Units redeemed |
(53,072 | ) | (25,445 | ) | (45,907 | ) | (7,002 | ) | (190,099 | ) | ||||||||||
| Ending units |
390,488 | 177,889 | 143,420 | 101,035 | 271,452 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
12 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| EQ Advisors Multimanager Portfolio Class IA |
EQ/Common Stock Index Portfolio Class IA |
EQ/Core Plus Bond Portfolio Class IA |
EQ/International Equity Index Portfolio Class IA |
EQ/Moderate Allocation Portfolio Class IA |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 1,991 | $ | 22,771 | $ | 305 | $ | 4,016 | $ | 6,446 | ||||||||||
| Mortality and expense risk and administrative charges |
(4,124 | ) | (15,454 | ) | (102 | ) | (1,071 | ) | (2,724 | ) | ||||||||||
| Net investment income (loss) |
(2,133 | ) | 7,317 | 203 | 2,945 | 3,722 | ||||||||||||||
| Net realized gain (loss) |
3,645 | 128,701 | (354 | ) | 2,078 | (81,252 | ) | |||||||||||||
| Capital gain distribution from mutual funds |
11,997 | 84,721 | — | — | 7,490 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
157,724 | 226,138 | 621 | 18,703 | 108,978 | |||||||||||||||
| Increase (decrease) in net assets from operations |
171,233 | 446,877 | 470 | 23,726 | 38,938 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
18,062 | 50,745 | 2,679 | 7,564 | 31,860 | |||||||||||||||
| Payments for contract benefits or terminations |
(43,201 | ) | (108,122 | ) | — | (41 | ) | (28,109 | ) | |||||||||||
| Policy loans |
(8,216 | ) | (14,981 | ) | (166 | ) | (4 | ) | (4,002 | ) | ||||||||||
| Transfers between sub-accounts (including fixed account), net |
(111 | ) | (3 | ) | 1 | (66 | ) | (653 | ) | |||||||||||
| Contract maintenance charges |
(37,668 | ) | (119,843 | ) | (4,211 | ) | (16,880 | ) | (64,890 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(71,134 | ) | (192,204 | ) | (1,697 | ) | (9,427 | ) | (65,794 | ) | ||||||||||
| Increase (decrease) in net assets |
100,099 | 254,673 | (1,227 | ) | 14,299 | (26,856 | ) | |||||||||||||
| Net assets at beginning of period |
480,482 | 1,921,262 | 14,517 | 134,854 | 376,272 | |||||||||||||||
| Net assets at end of period |
$ | 580,581 | $ | 2,175,935 | $ | 13,290 | $ | 149,153 | $ | 349,416 | ||||||||||
| Beginning units |
4,878 | 14,504 | 45 | 307 | 723 | |||||||||||||||
| Units issued |
87 | 115 | 6 | 9 | 13,058 | |||||||||||||||
| Units redeemed |
(671 | ) | (1,393 | ) | (11 | ) | (29 | ) | (7,761 | ) | ||||||||||
| Ending units |
4,294 | 13,226 | 40 | 287 | 6,020 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | — | $ | 16,211 | $ | 373 | $ | 3,347 | $ | 4,997 | ||||||||||
| Mortality and expense risk and administrative charges |
(4,446 | ) | (16,374 | ) | (122 | ) | (1,038 | ) | (3,184 | ) | ||||||||||
| Net investment income (loss) |
(4,446 | ) | (163 | ) | 251 | 2,309 | 1,813 | |||||||||||||
| Net realized gain (loss) |
12,579 | 148,729 | (205 | ) | 541 | (11,759 | ) | |||||||||||||
| Capital gain distribution from mutual funds |
71,382 | 112,727 | 14 | — | 31,240 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(334,127 | ) | (784,679 | ) | (2,552 | ) | (23,773 | ) | (102,209 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(254,612 | ) | (523,386 | ) | (2,492 | ) | (20,923 | ) | (80,915 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
20,133 | 56,378 | 3,155 | 11,084 | 30,917 | |||||||||||||||
| Payments for contract benefits or terminations |
(44,019 | ) | (98,529 | ) | — | (5,114 | ) | (9,984 | ) | |||||||||||
| Policy loans |
(5,055 | ) | (12,104 | ) | (7 | ) | (370 | ) | (5,785 | ) | ||||||||||
| Transfers between sub-accounts (including fixed account), net |
1 | (23,662 | ) | — | (1 | ) | (33 | ) | ||||||||||||
| Contract maintenance charges |
(41,413 | ) | (136,780 | ) | (4,878 | ) | (19,458 | ) | (77,214 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(70,353 | ) | (214,697 | ) | (1,730 | ) | (13,859 | ) | (62,099 | ) | ||||||||||
| Increase (decrease) in net assets |
(324,965 | ) | (738,083 | ) | (4,222 | ) | (34,782 | ) | (143,014 | ) | ||||||||||
| Net assets at beginning of period |
805,447 | 2,659,345 | 18,739 | 169,636 | 519,286 | |||||||||||||||
| Net assets at end of period |
$ | 480,482 | $ | 1,921,262 | $ | 14,517 | $ | 134,854 | $ | 376,272 | ||||||||||
| Beginning units |
5,507 | 16,047 | 50 | 337 | 837 | |||||||||||||||
| Units issued |
104 | 144 | 9 | 15 | 24 | |||||||||||||||
| Units redeemed |
(733 | ) | (1,687 | ) | (14 | ) | (45 | ) | (138 | ) | ||||||||||
| Ending units |
4,878 | 14,504 | 45 | 307 | 723 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
13 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| EQ/Money Market Portfolio Class IA |
Fidelity VIP Asset Manager Growth Portfolio Initial Class |
Fidelity VIP Asset Manager Portfolio Initial Class |
Fidelity VIP Asset Manager Portfolio Service Class 2 |
Fidelity VIP Contrafund Portfolio Initial Class |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 501 | $ | 106,848 | $ | 254,434 | $ | 83,321 | $ | 229,140 | ||||||||||
| Mortality and expense risk and administrative charges |
(86 | ) | (44,755 | ) | (79,066 | ) | (10,987 | ) | (340,643 | ) | ||||||||||
| Net investment income (loss) |
415 | 62,093 | 175,368 | 72,334 | (111,503 | ) | ||||||||||||||
| Net realized gain (loss) |
1 | 166,446 | (783,031 | ) | (32,279 | ) | 2,001,946 | |||||||||||||
| Capital gain distribution from mutual funds |
— | — | 120,156 | 42,437 | 1,662,584 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(1 | ) | 637,723 | 1,738,446 | 362,041 | 9,597,513 | ||||||||||||||
| Increase (decrease) in net assets from operations |
415 | 866,262 | 1,250,939 | 444,533 | 13,150,540 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
2,178 | 357,934 | 630,940 | 240,325 | 1,330,044 | |||||||||||||||
| Payments for contract benefits or terminations |
(1,505 | ) | (274,254 | ) | (479,694 | ) | (123,236 | ) | (2,812,640 | ) | ||||||||||
| Policy loans |
— | (16,747 | ) | (42,378 | ) | 12,036 | (164,603 | ) | ||||||||||||
| Transfers between sub-accounts (including fixed account), net |
— | (66,303 | ) | (5,439 | ) | 9,513 | (57,167 | ) | ||||||||||||
| Contract maintenance charges |
(3,445 | ) | (471,005 | ) | (923,582 | ) | (289,479 | ) | (2,080,737 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(2,772 | ) | (470,375 | ) | (820,153 | ) | (150,841 | ) | (3,785,103 | ) | ||||||||||
| Increase (decrease) in net assets |
(2,357 | ) | 395,887 | 430,786 | 293,692 | 9,365,437 | ||||||||||||||
| Net assets at beginning of period |
12,248 | 5,817,740 | 10,845,351 | 3,687,751 | 42,108,257 | |||||||||||||||
| Net assets at end of period |
$ | 9,891 | $ | 6,213,627 | $ | 11,276,137 | $ | 3,981,443 | $ | 51,473,694 | ||||||||||
| Beginning units |
68 | 12,136 | 34,359 | 200,034 | 361,439 | |||||||||||||||
| Units issued |
10 | 124 | 307,076 | 42,939 | 2,715 | |||||||||||||||
| Units redeemed |
(25 | ) | (1,037 | ) | (162,234 | ) | (49,463 | ) | (30,794 | ) | ||||||||||
| Ending units |
53 | 11,223 | 179,201 | 193,510 | 333,360 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 143 | $ | 113,396 | $ | 239,395 | $ | 73,946 | $ | 237,277 | ||||||||||
| Mortality and expense risk and administrative charges |
(110 | ) | (47,478 | ) | (85,625 | ) | (13,693 | ) | (343,171 | ) | ||||||||||
| Net investment income (loss) |
33 | 65,918 | 153,770 | 60,253 | (105,894 | ) | ||||||||||||||
| Net realized gain (loss) |
2 | 147,620 | 61,818 | (32,188 | ) | 1,467,789 | ||||||||||||||
| Capital gain distribution from mutual funds |
— | 412,027 | 790,649 | 273,512 | 2,250,255 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(2 | ) | (1,929,740 | ) | (3,109,397 | ) | (1,001,633 | ) | (19,752,543 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
33 | (1,304,175 | ) | (2,103,160 | ) | (700,056 | ) | (16,140,393 | ) | |||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
1,988 | 391,614 | 657,114 | 249,525 | 1,328,870 | |||||||||||||||
| Payments for contract benefits or terminations |
(4,701 | ) | (303,015 | ) | (475,753 | ) | (161,403 | ) | (1,637,298 | ) | ||||||||||
| Policy loans |
— | 1,349 | (11,368 | ) | 5,783 | 14,648 | ||||||||||||||
| Transfers between sub-accounts (including fixed account), net |
— | (3,362 | ) | (18,544 | ) | 36,511 | (196,216 | ) | ||||||||||||
| Contract maintenance charges |
(3,257 | ) | (488,541 | ) | (956,480 | ) | (299,291 | ) | (2,083,463 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(5,970 | ) | (401,955 | ) | (805,031 | ) | (168,875 | ) | (2,573,459 | ) | ||||||||||
| Increase (decrease) in net assets |
(5,937 | ) | (1,706,130 | ) | (2,908,191 | ) | (868,931 | ) | (18,713,852 | ) | ||||||||||
| Net assets at beginning of period |
18,185 | 7,523,870 | 13,753,542 | 4,556,682 | 60,822,109 | |||||||||||||||
| Net assets at end of period |
$ | 12,248 | $ | 5,817,740 | $ | 10,845,351 | $ | 3,687,751 | $ | 42,108,257 | ||||||||||
| Beginning units |
102 | 12,949 | 37,278 | 210,498 | 381,703 | |||||||||||||||
| Units issued |
10 | 175 | 2,398 | 48,395 | 3,695 | |||||||||||||||
| Units redeemed |
(44 | ) | (988 | ) | (5,317 | ) | (58,859 | ) | (23,959 | ) | ||||||||||
| Ending units |
68 | 12,136 | 34,359 | 200,034 | 361,439 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
14 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| Fidelity VIP Contrafund Portfolio Service Class 2 |
Fidelity VIP Equity- Income Portfolio Initial Class |
Fidelity VIP Equity- Income Portfolio Service Class 2 |
Fidelity VIP Freedom 2020 Portfolio Service Class 2 |
Fidelity VIP Freedom 2025 Portfolio Service Class 2 |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 105,790 | $ | 607,397 | $ | 337,285 | $ | 7,221 | $ | 15,924 | ||||||||||
| Mortality and expense risk and administrative charges |
(119,107 | ) | (237,317 | ) | (55,043 | ) | (814 | ) | (2,270 | ) | ||||||||||
| Net investment income (loss) |
(13,317 | ) | 370,080 | 282,242 | 6,407 | 13,654 | ||||||||||||||
| Net realized gain (loss) |
1,634,717 | 451,099 | 246,693 | (6,069 | ) | (8,783 | ) | |||||||||||||
| Capital gain distribution from mutual funds |
1,486,967 | 911,730 | 578,778 | 1,717 | — | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
8,356,535 | 1,263,078 | 757,531 | 25,023 | 71,747 | |||||||||||||||
| Increase (decrease) in net assets from operations |
11,464,902 | 2,995,987 | 1,865,244 | 27,078 | 76,618 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
1,574,508 | 1,371,898 | 829,744 | 18,344 | 32,594 | |||||||||||||||
| Payments for contract benefits or terminations |
(1,397,135 | ) | (1,777,518 | ) | (915,327 | ) | (3,823 | ) | (61 | ) | ||||||||||
| Policy loans |
(113,302 | ) | (59,428 | ) | (28,925 | ) | (235 | ) | 22,002 | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(684,839 | ) | 153,104 | 181,876 | 837 | (279,428 | ) | |||||||||||||
| Contract maintenance charges |
(1,742,846 | ) | (1,986,573 | ) | (956,525 | ) | (26,195 | ) | (50,392 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(2,363,614 | ) | (2,298,517 | ) | (889,157 | ) | (11,072 | ) | (275,285 | ) | ||||||||||
| Increase (decrease) in net assets |
9,101,288 | 697,470 | 976,087 | 16,006 | (198,667 | ) | ||||||||||||||
| Net assets at beginning of period |
35,458,051 | 32,226,860 | 19,124,245 | 233,558 | 741,849 | |||||||||||||||
| Net assets at end of period |
$ | 44,559,339 | $ | 32,924,330 | $ | 20,100,332 | $ | 249,564 | $ | 543,182 | ||||||||||
| Beginning units |
1,254,816 | 255,457 | 765,987 | 12,228 | 36,375 | |||||||||||||||
| Units issued |
228,382 | 1,684 | 128,065 | 776 | 3,940 | |||||||||||||||
| Units redeemed |
(295,332 | ) | (19,499 | ) | (162,999 | ) | (1,309 | ) | (16,865 | ) | ||||||||||
| Ending units |
1,187,866 | 237,642 | 731,053 | 11,695 | 23,450 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 104,099 | $ | 620,494 | $ | 341,929 | $ | 5,540 | $ | 14,052 | ||||||||||
| Mortality and expense risk and administrative charges |
(133,183 | ) | (246,993 | ) | (64,851 | ) | (1,096 | ) | (2,773 | ) | ||||||||||
| Net investment income (loss) |
(29,084 | ) | 373,501 | 277,078 | 4,444 | 11,279 | ||||||||||||||
| Net realized gain (loss) |
1,470,909 | 583,422 | 421,366 | (15,759 | ) | (4,209 | ) | |||||||||||||
| Capital gain distribution from mutual funds |
1,952,349 | 1,088,415 | 685,135 | 36,912 | 49,788 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(16,830,290 | ) | (4,097,480 | ) | (2,621,949 | ) | (93,013 | ) | (207,587 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(13,436,116 | ) | (2,052,142 | ) | (1,238,370 | ) | (67,416 | ) | (150,729 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
1,601,855 | 1,417,179 | 834,154 | 24,420 | 36,280 | |||||||||||||||
| Payments for contract benefits or terminations |
(1,023,593 | ) | (1,303,210 | ) | (855,077 | ) | (87,596 | ) | (10,497 | ) | ||||||||||
| Policy loans |
(1,561 | ) | (16,987 | ) | (60,090 | ) | 118 | 13,445 | ||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(486,950 | ) | 248,988 | (945,689 | ) | (16,665 | ) | 28,941 | ||||||||||||
| Contract maintenance charges |
(1,776,939 | ) | (2,059,489 | ) | (953,596 | ) | (26,983 | ) | (50,524 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(1,687,188 | ) | (1,713,519 | ) | (1,980,298 | ) | (106,706 | ) | 17,645 | |||||||||||
| Increase (decrease) in net assets |
(15,123,304 | ) | (3,765,661 | ) | (3,218,668 | ) | (174,122 | ) | (133,084 | ) | ||||||||||
| Net assets at beginning of period |
50,581,355 | 35,992,521 | 22,342,913 | 407,680 | 874,933 | |||||||||||||||
| Net assets at end of period |
$ | 35,458,051 | $ | 32,226,860 | $ | 19,124,245 | $ | 233,558 | $ | 741,849 | ||||||||||
| Beginning units |
1,305,230 | 269,140 | 848,811 | 17,963 | 35,751 | |||||||||||||||
| Units issued |
270,670 | 4,291 | 288,224 | 3,053 | 5,342 | |||||||||||||||
| Units redeemed |
(321,084 | ) | (17,974 | ) | (371,048 | ) | (8,788 | ) | (4,718 | ) | ||||||||||
| Ending units |
1,254,816 | 255,457 | 765,987 | 12,228 | 36,375 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
15 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
|
Fidelity VIP Class 2 |
Fidelity VIP Government Money Initial Class |
Fidelity VIP Government Money Market Portfolio Service Class 2 |
Fidelity VIP Growth Portfolio Initial Class |
Fidelity VIP Growth Portfolio Service |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 69,049 | $ | 695,875 | $ | 69,717 | $ | 106,811 | $ | 1,141 | ||||||||||
| Mortality and expense risk and administrative charges |
(6,415 | ) | (49,278 | ) | (3,937 | ) | (590,313 | ) | (90,956 | ) | ||||||||||
| Net investment income (loss) |
62,634 | 646,597 | 65,780 | (483,502 | ) | (89,815 | ) | |||||||||||||
| Net realized gain (loss) |
(14,336 | ) | — | — | 1,543,305 | 1,047,779 | ||||||||||||||
| Capital gain distribution from mutual funds |
— | — | — | 3,843,246 | 1,508,305 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
362,170 | — | — | 19,774,581 | 6,869,908 | |||||||||||||||
| Increase (decrease) in net assets from operations |
410,468 | 646,597 | 65,780 | 24,677,630 | 9,336,177 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
91,300 | 1,282,135 | 42,765 | 2,063,220 | 729,282 | |||||||||||||||
| Payments for contract benefits or terminations |
(41,174 | ) | (1,350,075 | ) | (303,863 | ) | (3,406,618 | ) | (826,544 | ) | ||||||||||
| Policy loans |
(12,343 | ) | (6,706 | ) | 34 | (227,114 | ) | (51,318 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(5,274 | ) | 1,149,942 | (44,482 | ) | (71,800 | ) | 797,000 | ||||||||||||
| Contract maintenance charges |
(155,738 | ) | (1,811,241 | ) | (144,798 | ) | (3,442,098 | ) | (1,087,249 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(123,229 | ) | (735,945 | ) | (450,344 | ) | (5,084,410 | ) | (438,829 | ) | ||||||||||
| Increase (decrease) in net assets |
287,239 | (89,348 | ) | (384,564 | ) | 19,593,220 | 8,897,348 | |||||||||||||
| Net assets at beginning of period |
2,940,151 | 13,695,581 | 1,622,196 | 72,156,994 | 26,453,003 | |||||||||||||||
| Net assets at end of period |
$ | 3,227,390 | $ | 13,606,233 | $ | 1,237,632 | $ | 91,750,214 | $ | 35,350,351 | ||||||||||
| Beginning units |
137,491 | 1,151,207 | 157,339 | 482,060 | 730,782 | |||||||||||||||
| Units issued |
5,117 | 905,435 | 42,238 | 4,995 | 196,311 | |||||||||||||||
| Units redeemed |
(10,505 | ) | (968,729 | ) | (84,575 | ) | (32,371 | ) | (214,318 | ) | ||||||||||
| Ending units |
132,103 | 1,087,913 | 115,002 | 454,684 | 712,775 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 53,879 | $ | 176,973 | $ | 20,586 | $ | 502,089 | $ | 103,937 | ||||||||||
| Mortality and expense risk and administrative charges |
(10,346 | ) | (32,994 | ) | (3,963 | ) | (588,079 | ) | (103,090 | ) | ||||||||||
| Net investment income (loss) |
43,533 | 143,979 | 16,623 | (85,990 | ) | 847 | ||||||||||||||
| Net realized gain (loss) |
42,547 | — | — | 1,216,061 | 826,676 | |||||||||||||||
| Capital gain distribution from mutual funds |
217,142 | — | — | 6,050,344 | 2,270,983 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(939,135 | ) | — | — | (32,227,646 | ) | (12,234,471 | ) | ||||||||||||
| Increase (decrease) in net assets from operations |
(635,913 | ) | 143,979 | 16,623 | (25,047,231 | ) | (9,135,965 | ) | ||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
93,428 | 939,543 | 69,039 | 2,137,798 | 766,932 | |||||||||||||||
| Payments for contract benefits or terminations |
(53,308 | ) | (967,455 | ) | (2,723 | ) | (2,925,778 | ) | (797,843 | ) | ||||||||||
| Policy loans |
(25,326 | ) | (3,610 | ) | (429 | ) | (241,186 | ) | (3,990 | ) | ||||||||||
| Transfers between sub-accounts (including fixed account), net |
(3,677 | ) | 10,796,878 | 960,949 | (129,289 | ) | 124,835 | |||||||||||||
| Contract maintenance charges |
(138,996 | ) | (1,129,637 | ) | (127,088 | ) | (3,392,919 | ) | (1,022,212 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(127,879 | ) | 9,635,719 | 899,748 | (4,551,374 | ) | (932,278 | ) | ||||||||||||
| Increase (decrease) in net assets |
(763,792 | ) | 9,779,698 | 916,371 | (29,598,605 | ) | (10,068,243 | ) | ||||||||||||
| Net assets at beginning of period |
3,703,943 | 3,915,883 | 705,825 | 101,755,599 | 36,521,246 | |||||||||||||||
| Net assets at end of period |
$ | 2,940,151 | $ | 13,695,581 | $ | 1,622,196 | $ | 72,156,994 | $ | 26,453,003 | ||||||||||
| Beginning units |
146,780 | 180,001 | 69,064 | 508,683 | 762,029 | |||||||||||||||
| Units issued |
74,313 | 1,390,648 | 224,937 | 4,124 | 193,785 | |||||||||||||||
| Units redeemed |
(83,602 | ) | (419,442 | ) | (136,662 | ) | (30,747 | ) | (225,032 | ) | ||||||||||
| Ending units |
137,491 | 1,151,207 | 157,339 | 482,060 | 730,782 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
16 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| Fidelity VIP High Income Portfolio Initial Class |
Fidelity VIP Index 500 Portfolio Initial Class |
Fidelity VIP Investment Grade Bond Portfolio Initial Class |
Fidelity VIP Mid Cap Portfolio Service Class 2 |
Fidelity VIP Overseas Portfolio Initial Class |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 96,095 | $ | 644,862 | $ | 59,214 | $ | 45,359 | $ | 66,886 | ||||||||||
| Mortality and expense risk and administrative charges |
(11,475 | ) | (328,156 | ) | (15,940 | ) | (39,461 | ) | (47,491 | ) | ||||||||||
| Net investment income (loss) |
84,620 | 316,706 | 43,274 | 5,898 | 19,395 | |||||||||||||||
| Net realized gain (loss) |
(44,751 | ) | 2,280,200 | (41,528 | ) | 68,690 | 182,490 | |||||||||||||
| Capital gain distribution from mutual funds |
— | 404,768 | — | 338,493 | 16,917 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
121,922 | 6,888,503 | 121,216 | 1,184,244 | 931,567 | |||||||||||||||
| Increase (decrease) in net assets from operations |
161,791 | 9,890,177 | 122,962 | 1,597,325 | 1,150,369 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
128,792 | 1,521,000 | 180,375 | 505,163 | 408,300 | |||||||||||||||
| Payments for contract benefits or terminations |
(84,814 | ) | (1,747,149 | ) | (94,789 | ) | (510,061 | ) | (280,326 | ) | ||||||||||
| Policy loans |
(1,636 | ) | (313,044 | ) | 4,911 | (44,556 | ) | (4,827 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(875 | ) | (89,839 | ) | (2,279 | ) | (73,896 | ) | (7,956 | ) | ||||||||||
| Contract maintenance charges |
(186,126 | ) | (2,230,300 | ) | (255,979 | ) | (549,839 | ) | (551,860 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(144,659 | ) | (2,859,332 | ) | (167,761 | ) | (673,189 | ) | (436,669 | ) | ||||||||||
| Increase (decrease) in net assets |
17,132 | 7,030,845 | (44,799 | ) | 924,136 | 713,700 | ||||||||||||||
| Net assets at beginning of period |
1,735,324 | 40,578,068 | 2,372,446 | 11,519,093 | 6,074,911 | |||||||||||||||
| Net assets at end of period |
$ | 1,752,456 | $ | 47,608,913 | $ | 2,327,647 | $ | 12,443,229 | $ | 6,788,611 | ||||||||||
| Beginning units |
19,317 | 348,525 | 20,295 | 486,453 | 22,574 | |||||||||||||||
| Units issued |
1,415 | 1,488 | 1,586 | 56,620 | 482 | |||||||||||||||
| Units redeemed |
(3,004 | ) | (23,545 | ) | (2,994 | ) | (81,151 | ) | (1,564 | ) | ||||||||||
| Ending units |
17,728 | 326,468 | 18,887 | 461,922 | 21,492 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 93,287 | $ | 644,044 | $ | 56,667 | $ | 32,452 | $ | 68,899 | ||||||||||
| Mortality and expense risk and administrative charges |
(12,482 | ) | (331,829 | ) | (17,591 | ) | (43,451 | ) | (48,612 | ) | ||||||||||
| Net investment income (loss) |
80,805 | 312,215 | 39,076 | (10,999 | ) | 20,287 | ||||||||||||||
| Net realized gain (loss) |
(52,323 | ) | 2,064,229 | (25,715 | ) | 42,523 | 172,430 | |||||||||||||
| Capital gain distribution from mutual funds |
— | 345,558 | 138,967 | 823,702 | 61,853 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(278,143 | ) | (12,494,983 | ) | (544,776 | ) | (3,102,334 | ) | (2,426,477 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(249,661 | ) | (9,772,981 | ) | (392,448 | ) | (2,247,108 | ) | (2,171,907 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
149,507 | 1,598,344 | 190,827 | 549,329 | 416,200 | |||||||||||||||
| Payments for contract benefits or terminations |
(83,766 | ) | (1,696,357 | ) | (149,407 | ) | (325,420 | ) | (277,955 | ) | ||||||||||
| Policy loans |
8,933 | (22,404 | ) | 2,220 | 1,711 | (10,251 | ) | |||||||||||||
| Transfers between sub-accounts (including fixed account), net |
202 | 5,642 | 1,770 | (64,183 | ) | (45,202 | ) | |||||||||||||
| Contract maintenance charges |
(207,044 | ) | (2,212,924 | ) | (269,500 | ) | (602,267 | ) | (555,034 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(132,168 | ) | (2,327,699 | ) | (224,090 | ) | (440,830 | ) | (472,242 | ) | ||||||||||
| Increase (decrease) in net assets |
(381,829 | ) | (12,100,680 | ) | (616,538 | ) | (2,687,938 | ) | (2,644,149 | ) | ||||||||||
| Net assets at beginning of period |
2,117,153 | 52,678,748 | 2,988,984 | 14,207,031 | 8,719,060 | |||||||||||||||
| Net assets at end of period |
$ | 1,735,324 | $ | 40,578,068 | $ | 2,372,446 | $ | 11,519,093 | $ | 6,074,911 | ||||||||||
| Beginning units |
19,745 | 367,292 | 22,024 | 503,167 | 23,873 | |||||||||||||||
| Units issued |
2,586 | 3,757 | 1,548 | 101,679 | 455 | |||||||||||||||
| Units redeemed |
(3,014 | ) | (22,524 | ) | (3,277 | ) | (118,393 | ) | (1,754 | ) | ||||||||||
| Ending units |
19,317 | 348,525 | 20,295 | 486,453 | 22,574 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
17 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| FTVIP Franklin Mutual Shares VIP Fund Class 2 |
FTVIP Franklin Small Cap Value VIP Fund Class 2 |
FTVIP Franklin Small-Mid Cap Growth VIP Fund Class 2 |
FTVIP Franklin U.S. Government Securities VIP Fund Class 2 |
FTVIP Templeton Foreign VIP Fund Class 2 |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 120,972 | $ | 41,777 | $ | — | $ | 46,157 | $ | 113,304 | ||||||||||
| Mortality and expense risk and administrative charges |
(19,441 | ) | (28,154 | ) | (54 | ) | (6,794 | ) | (12,799 | ) | ||||||||||
| Net investment income (loss) |
101,531 | 13,623 | (54 | ) | 39,363 | 100,505 | ||||||||||||||
| Net realized gain (loss) |
(193,645 | ) | (381,427 | ) | (3,465 | ) | (85,250 | ) | 44,191 | |||||||||||
| Capital gain distribution from mutual funds |
556,800 | 452,899 | — | — | — | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
306,187 | 853,694 | 8,369 | 120,175 | 553,893 | |||||||||||||||
| Increase (decrease) in net assets from operations |
770,873 | 938,789 | 4,850 | 74,288 | 698,589 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
350,522 | 339,996 | 860 | 104,071 | 151,147 | |||||||||||||||
| Payments for contract benefits or terminations |
(91,975 | ) | (259,490 | ) | (527 | ) | (30,102 | ) | (121,373 | ) | ||||||||||
| Policy loans |
(5,321 | ) | (31,687 | ) | 57 | 13,835 | (18,815 | ) | ||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(41,816 | ) | 660,181 | (13 | ) | (1,014,592 | ) | (237,754 | ) | |||||||||||
| Contract maintenance charges |
(370,563 | ) | (420,476 | ) | (2,244 | ) | (120,003 | ) | (223,285 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(159,153 | ) | 288,524 | (1,867 | ) | (1,046,791 | ) | (450,080 | ) | |||||||||||
| Increase (decrease) in net assets |
611,720 | 1,227,313 | 2,983 | (972,503 | ) | 248,509 | ||||||||||||||
| Net assets at beginning of period |
6,188,185 | 7,861,992 | 19,326 | 2,657,889 | 3,324,304 | |||||||||||||||
| Net assets at end of period |
$ | 6,799,905 | $ | 9,089,305 | $ | 22,309 | $ | 1,685,386 | $ | 3,572,813 | ||||||||||
| Beginning units |
344,817 | 318,474 | 680 | 225,652 | 306,634 | |||||||||||||||
| Units issued |
87,026 | 91,884 | 49 | 25,230 | 241,007 | |||||||||||||||
| Units redeemed |
(97,113 | ) | (83,798 | ) | (107 | ) | (113,184 | ) | (274,540 | ) | ||||||||||
| Ending units |
334,730 | 326,560 | 622 | 137,698 | 273,101 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 118,439 | $ | 85,445 | $ | — | $ | 55,560 | $ | 103,054 | ||||||||||
| Mortality and expense risk and administrative charges |
(22,399 | ) | (30,798 | ) | (92 | ) | (8,998 | ) | (12,842 | ) | ||||||||||
| Net investment income (loss) |
96,040 | 54,647 | (92 | ) | 46,562 | 90,212 | ||||||||||||||
| Net realized gain (loss) |
(198,717 | ) | (442,202 | ) | (7,944 | ) | (147,717 | ) | (92,789 | ) | ||||||||||
| Capital gain distribution from mutual funds |
715,268 | 1,612,453 | 7,363 | — | — | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(1,147,176 | ) | (2,244,356 | ) | (12,673 | ) | (144,882 | ) | (295,280 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(534,585 | ) | (1,019,458 | ) | (13,346 | ) | (246,037 | ) | (297,857 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
366,151 | 364,959 | 1,208 | 113,112 | 223,043 | |||||||||||||||
| Payments for contract benefits or terminations |
(175,587 | ) | (263,696 | ) | (4,922 | ) | (627,318 | ) | (62,085 | ) | ||||||||||
| Policy loans |
560 | (18,511 | ) | (275 | ) | 8,232 | 8,040 | |||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(116,169 | ) | (215,670 | ) | 1,786 | 1,475,910 | (285,140 | ) | ||||||||||||
| Contract maintenance charges |
(382,344 | ) | (425,284 | ) | (5,691 | ) | (115,527 | ) | (292,216 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(307,389 | ) | (558,202 | ) | (7,894 | ) | 854,409 | (408,358 | ) | |||||||||||
| Increase (decrease) in net assets |
(841,974 | ) | (1,577,660 | ) | (21,240 | ) | 608,372 | (706,215 | ) | |||||||||||
| Net assets at beginning of period |
7,030,159 | 9,439,652 | 40,566 | 2,049,517 | 4,030,519 | |||||||||||||||
| Net assets at end of period |
$ | 6,188,185 | $ | 7,861,992 | $ | 19,326 | $ | 2,657,889 | $ | 3,324,304 | ||||||||||
| Beginning units |
360,868 | 337,903 | 956 | 155,868 | 341,923 | |||||||||||||||
| Units issued |
58,726 | 132,091 | 278 | 157,483 | 88,798 | |||||||||||||||
| Units redeemed |
(74,777 | ) | (151,520 | ) | (554 | ) | (87,699 | ) | (124,087 | ) | ||||||||||
| Ending units |
344,817 | 318,474 | 680 | 225,652 | 306,634 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
18 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| Goldman Sachs VIT Strategic Growth Fund Institutional Shares |
Invesco V.I. American Franchise |
Invesco V.I. Conservative Balanced Fund Series I |
Invesco V.I. Core Equity Fund Series I |
Invesco V.I. EQV International Equity Fund Series 1 |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | — | $ | — | $ | 23,907 | $ | 63,418 | $ | 15,320 | ||||||||||
| Mortality and expense risk and administrative charges |
(9,723 | ) | (2,201 | ) | (4,438 | ) | (18,422 | ) | (23,530 | ) | ||||||||||
| Net investment income (loss) |
(9,723 | ) | (2,201 | ) | 19,469 | 44,996 | (8,210 | ) | ||||||||||||
| Net realized gain (loss) |
(213,511 | ) | 9,262 | (34,312 | ) | (289,880 | ) | (237,195 | ) | |||||||||||
| Capital gain distribution from mutual funds |
182,167 | 15,673 | — | 204,654 | 5,736 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
1,523,617 | 209,500 | 160,908 | 1,809,294 | 1,559,709 | |||||||||||||||
| Increase (decrease) in net assets from operations |
1,482,550 | 232,234 | 146,065 | 1,769,064 | 1,320,040 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
— | 25,291 | 77,893 | 394,212 | 450,369 | |||||||||||||||
| Payments for contract benefits or terminations |
(6,702 | ) | (10,619 | ) | (41,191 | ) | (271,336 | ) | (212,815 | ) | ||||||||||
| Policy loans |
(73 | ) | 8,469 | 1,255 | (21,042 | ) | (9,271 | ) | ||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(29 | ) | (151 | ) | (219,118 | ) | (1,086 | ) | (152,541 | ) | ||||||||||
| Contract maintenance charges |
(454,017 | ) | (45,653 | ) | (92,141 | ) | (536,835 | ) | (485,657 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(460,821 | ) | (22,663 | ) | (273,302 | ) | (436,087 | ) | (409,915 | ) | ||||||||||
| Increase (decrease) in net assets |
1,021,729 | 209,571 | (127,237 | ) | 1,332,977 | 910,125 | ||||||||||||||
| Net assets at beginning of period |
3,754,625 | 584,673 | 1,434,026 | 7,913,272 | 7,390,954 | |||||||||||||||
| Net assets at end of period |
$ | 4,776,354 | $ | 794,244 | $ | 1,306,789 | $ | 9,246,249 | $ | 8,301,079 | ||||||||||
| Beginning units |
106,347 | 21,146 | 99,201 | 324,888 | 479,666 | |||||||||||||||
| Units issued |
6 | 1,683 | 13,005 | 38,646 | 137,033 | |||||||||||||||
| Units redeemed |
(10,793 | ) | (2,410 | ) | (31,600 | ) | (56,012 | ) | (157,153 | ) | ||||||||||
| Ending units |
95,560 | 20,419 | 80,606 | 307,522 | 459,546 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | — | $ | — | $ | 17,974 | $ | 79,364 | $ | 127,767 | ||||||||||
| Mortality and expense risk and administrative charges |
(10,030 | ) | (2,171 | ) | (4,844 | ) | (21,461 | ) | (24,507 | ) | ||||||||||
| Net investment income (loss) |
(10,030 | ) | (2,171 | ) | 13,130 | 57,903 | 103,260 | |||||||||||||
| Net realized gain (loss) |
(4,748 | ) | 19,999 | 11,789 | (79,128 | ) | (70,667 | ) | ||||||||||||
| Capital gain distribution from mutual funds |
736,427 | 180,500 | 97,945 | 1,348,762 | 814,994 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(2,666,391 | ) | (470,491 | ) | (375,411 | ) | (3,476,712 | ) | (2,543,649 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(1,944,742 | ) | (272,163 | ) | (252,547 | ) | (2,149,175 | ) | (1,696,062 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
— | 34,824 | 74,650 | 421,415 | 490,866 | |||||||||||||||
| Payments for contract benefits or terminations |
(465 | ) | (12,384 | ) | (50,491 | ) | (302,535 | ) | (220,965 | ) | ||||||||||
| Policy loans |
(6,524 | ) | 4,466 | 4,543 | (15,997 | ) | (1,871 | ) | ||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(3 | ) | (2,636 | ) | 311,839 | (23,748 | ) | 69,801 | ||||||||||||
| Contract maintenance charges |
(381,677 | ) | (42,328 | ) | (82,775 | ) | (510,566 | ) | (471,344 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(388,669 | ) | (18,058 | ) | 257,766 | (431,431 | ) | (133,513 | ) | |||||||||||
| Increase (decrease) in net assets |
(2,333,411 | ) | (290,221 | ) | 5,219 | (2,580,606 | ) | (1,829,575 | ) | |||||||||||
| Net assets at beginning of period |
6,088,036 | 874,894 | 1,428,807 | 10,493,878 | 9,220,529 | |||||||||||||||
| Net assets at end of period |
$ | 3,754,625 | $ | 584,673 | $ | 1,434,026 | $ | 7,913,272 | $ | 7,390,954 | ||||||||||
| Beginning units |
116,124 | 21,731 | 81,298 | 344,276 | 485,451 | |||||||||||||||
| Units issued |
772 | 1,375 | 33,078 | 58,912 | 140,454 | |||||||||||||||
| Units redeemed |
(10,549 | ) | (1,960 | ) | (15,175 | ) | (78,300 | ) | (146,239 | ) | ||||||||||
| Ending units |
106,347 | 21,146 | 99,201 | 324,888 | 479,666 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
19 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| Invesco V.I. Global Fund Series I |
Invesco V.I. Global Real Estate Fund Series I |
Invesco V.I. Global Strategic Income Fund Series I |
Invesco V.I. Government Securities Fund Series I |
Invesco V.I. Growth and Income Fund Series I |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 20,494 | $ | 9,707 | $ | — | $ | 156 | $ | 175,211 | ||||||||||
| Mortality and expense risk and administrative charges |
(29,150 | ) | (1,182 | ) | (1 | ) | (36 | ) | (33,496 | ) | ||||||||||
| Net investment income (loss) |
(8,656 | ) | 8,525 | (1 | ) | 120 | 141,715 | |||||||||||||
| Net realized gain (loss) |
(120,949 | ) | (34,465 | ) | 1 | (705 | ) | (39,733 | ) | |||||||||||
| Capital gain distribution from mutual funds |
1,036,355 | — | — | — | 1,392,245 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
1,688,653 | 82,955 | 25 | 910 | (208,923 | ) | ||||||||||||||
| Increase (decrease) in net assets from operations |
2,595,403 | 57,015 | 25 | 325 | 1,285,304 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
370,744 | 52,393 | — | 344 | 531,540 | |||||||||||||||
| Payments for contract benefits or terminations |
(345,528 | ) | (29,076 | ) | — | — | (463,210 | ) | ||||||||||||
| Policy loans |
(11,594 | ) | 1,822 | — | (51 | ) | (19,508 | ) | ||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(210,598 | ) | 7,807 | — | (9 | ) | (86,490 | ) | ||||||||||||
| Contract maintenance charges |
(362,267 | ) | (28,596 | ) | (54 | ) | (1,031 | ) | (606,584 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(559,243 | ) | 4,350 | (54 | ) | (747 | ) | (644,252 | ) | |||||||||||
| Increase (decrease) in net assets |
2,036,160 | 61,365 | (29 | ) | (422 | ) | 641,052 | |||||||||||||
| Net assets at beginning of period |
7,794,534 | 636,895 | 326 | 8,242 | 10,827,720 | |||||||||||||||
| Net assets at end of period |
$ | 9,830,694 | $ | 698,260 | $ | 297 | $ | 7,820 | $ | 11,468,772 | ||||||||||
| Beginning units |
356,891 | 50,792 | 31 | 763 | 426,195 | |||||||||||||||
| Units issued |
71,815 | 19,909 | — | 342 | 98,065 | |||||||||||||||
| Units redeemed |
(93,589 | ) | (19,369 | ) | (5 | ) | (420 | ) | (121,796 | ) | ||||||||||
| Ending units |
335,117 | 51,332 | 26 | 685 | 402,464 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | — | $ | 20,468 | $ | — | $ | 178 | $ | 183,582 | ||||||||||
| Mortality and expense risk and administrative charges |
(29,896 | ) | (1,251 | ) | (1 | ) | (43 | ) | (38,883 | ) | ||||||||||
| Net investment income (loss) |
(29,896 | ) | 19,217 | (1 | ) | 135 | 144,699 | |||||||||||||
| Net realized gain (loss) |
(27,280 | ) | (5,564 | ) | (70 | ) | (101 | ) | 266,309 | |||||||||||
| Capital gain distribution from mutual funds |
1,488,935 | — | — | — | 1,044,629 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(5,074,585 | ) | (217,200 | ) | 20 | (1,054 | ) | (2,161,783 | ) | |||||||||||
| Increase (decrease) in net assets from operations |
(3,642,826 | ) | (203,547 | ) | (51 | ) | (1,020 | ) | (706,146 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
438,037 | 59,490 | — | 483 | 511,796 | |||||||||||||||
| Payments for contract benefits or terminations |
(188,985 | ) | (6,650 | ) | — | — | (366,631 | ) | ||||||||||||
| Policy loans |
(20,967 | ) | (3,408 | ) | — | (49 | ) | (95,184 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
266,135 | 11,324 | (1 | ) | 118 | (303,208 | ) | |||||||||||||
| Contract maintenance charges |
(385,818 | ) | (32,521 | ) | (54 | ) | (852 | ) | (629,855 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
108,402 | 28,235 | (55 | ) | (300 | ) | (883,082 | ) | ||||||||||||
| Increase (decrease) in net assets |
(3,534,424 | ) | (175,312 | ) | (106 | ) | (1,320 | ) | (1,589,228 | ) | ||||||||||
| Net assets at beginning of period |
11,328,958 | 812,207 | 432 | 9,562 | 12,416,948 | |||||||||||||||
| Net assets at end of period |
$ | 7,794,534 | $ | 636,895 | $ | 326 | $ | 8,242 | $ | 10,827,720 | ||||||||||
| Beginning units |
347,509 | 48,116 | 37 | 791 | 459,197 | |||||||||||||||
| Units issued |
71,953 | 6,713 | 35 | 47 | 105,786 | |||||||||||||||
| Units redeemed |
(62,571 | ) | (4,037 | ) | (41 | ) | (75 | ) | (138,788 | ) | ||||||||||
| Ending units |
356,891 | 50,792 | 31 | 763 | 426,195 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
20 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| Invesco V.I. High Yield Fund Series I |
Invesco V.I. Main Street Fund Series I |
Janus Henderson Enterprise Portfolio Service Shares |
Janus Henderson Forty Portfolio Service Shares |
Janus Henderson Global Research Portfolio Service Shares |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 43,164 | $ | 6,632 | $ | 7,207 | $ | 2,135 | $ | 27,305 | ||||||||||
| Mortality and expense risk and administrative charges |
(3,469 | ) | (780 | ) | (19,530 | ) | (3,594 | ) | (7,847 | ) | ||||||||||
| Net investment income (loss) |
39,695 | 5,852 | (12,323 | ) | (1,459 | ) | 19,458 | |||||||||||||
| Net realized gain (loss) |
(50,170 | ) | (6,751 | ) | (227,398 | ) | (9,225 | ) | 73,571 | |||||||||||
| Capital gain distribution from mutual funds |
— | 53,927 | 596,417 | — | 102,900 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
86,496 | 109,131 | 905,617 | 555,108 | 625,567 | |||||||||||||||
| Increase (decrease) in net assets from operations |
76,021 | 162,159 | 1,262,313 | 544,424 | 821,496 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
31,633 | 20,328 | 250,197 | 90,955 | 129,041 | |||||||||||||||
| Payments for contract benefits or terminations |
(17,088 | ) | (10,858 | ) | (313,097 | ) | (5,724 | ) | (140,725 | ) | ||||||||||
| Policy loans |
(3,463 | ) | (9,879 | ) | (40,624 | ) | (407 | ) | (50,052 | ) | ||||||||||
| Transfers between sub-accounts (including fixed account), net |
(200,125 | ) | 3,784 | (10,951 | ) | 16,801 | (22,723 | ) | ||||||||||||
| Contract maintenance charges |
(48,642 | ) | (28,007 | ) | (276,285 | ) | (100,931 | ) | (159,756 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(237,685 | ) | (24,632 | ) | (390,760 | ) | 694 | (244,215 | ) | |||||||||||
| Increase (decrease) in net assets |
(161,664 | ) | 137,527 | 871,553 | 545,118 | 577,281 | ||||||||||||||
| Net assets at beginning of period |
916,604 | 713,635 | 7,417,232 | 1,386,984 | 3,264,433 | |||||||||||||||
| Net assets at end of period |
$ | 754,940 | $ | 851,162 | $ | 8,288,785 | $ | 1,932,102 | $ | 3,841,714 | ||||||||||
| Beginning units |
63,749 | 21,825 | 218,571 | 54,172 | 149,107 | |||||||||||||||
| Units issued |
5,492 | 763 | 34,547 | 17,804 | 28,248 | |||||||||||||||
| Units redeemed |
(21,612 | ) | (1,441 | ) | (43,072 | ) | (18,312 | ) | (39,720 | ) | ||||||||||
| Ending units |
47,629 | 21,147 | 210,046 | 53,664 | 137,635 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 44,195 | $ | 11,489 | $ | 6,471 | $ | 802 | $ | 31,197 | ||||||||||
| Mortality and expense risk and administrative charges |
(3,855 | ) | (772 | ) | (23,436 | ) | (3,357 | ) | (10,297 | ) | ||||||||||
| Net investment income (loss) |
40,340 | 10,717 | (16,965 | ) | (2,555 | ) | 20,900 | |||||||||||||
| Net realized gain (loss) |
(18,994 | ) | 4,911 | 34,073 | (16,989 | ) | 229,922 | |||||||||||||
| Capital gain distribution from mutual funds |
— | 296,128 | 1,416,867 | 263,879 | 399,471 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(123,247 | ) | (498,198 | ) | (2,993,185 | ) | (954,363 | ) | (1,482,895 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(101,901 | ) | (186,442 | ) | (1,559,210 | ) | (710,028 | ) | (832,602 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
39,747 | 20,463 | 272,793 | 95,073 | 138,113 | |||||||||||||||
| Payments for contract benefits or terminations |
(38,517 | ) | (13,959 | ) | (301,965 | ) | (9,776 | ) | (68,221 | ) | ||||||||||
| Policy loans |
(2,005 | ) | 702 | (47,444 | ) | (235 | ) | (11,490 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
96,885 | (1,851 | ) | (432,846 | ) | 23,260 | (1,588 | ) | ||||||||||||
| Contract maintenance charges |
(51,455 | ) | (27,980 | ) | (299,041 | ) | (100,266 | ) | (162,933 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
44,655 | (22,625 | ) | (808,503 | ) | 8,056 | (106,119 | ) | ||||||||||||
| Increase (decrease) in net assets |
(57,246 | ) | (209,067 | ) | (2,367,713 | ) | (701,972 | ) | (938,721 | ) | ||||||||||
| Net assets at beginning of period |
973,850 | 922,702 | 9,784,945 | 2,088,956 | 4,203,154 | |||||||||||||||
| Net assets at end of period |
$ | 916,604 | $ | 713,635 | $ | 7,417,232 | $ | 1,386,984 | $ | 3,264,433 | ||||||||||
| Beginning units |
61,065 | 22,515 | 243,118 | 53,879 | 155,609 | |||||||||||||||
| Units issued |
12,589 | 666 | 36,476 | 5,650 | 35,965 | |||||||||||||||
| Units redeemed |
(9,905 | ) | (1,356 | ) | (61,023 | ) | (5,357 | ) | (42,467 | ) | ||||||||||
| Ending units |
63,749 | 21,825 | 218,571 | 54,172 | 149,107 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
21 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| Janus Henderson Overseas Portfolio Service Shares |
LVIP JPMorgan Core Bond Fund Standard Class |
LVIP JPMorgan Mid Cap Value Fund Standard Class |
LVIP JPMorgan Small Cap Core Fund Standard Class |
LVIP JPMorgan U.S. Equity Fund Standard Class |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 88,570 | $ | 133,700 | $ | 13,452 | $ | 45,952 | $ | 7,146 | ||||||||||
| Mortality and expense risk and administrative charges |
(20,028 | ) | (8,889 | ) | (1,361 | ) | (10,748 | ) | (450 | ) | ||||||||||
| Net investment income (loss) |
68,542 | 124,811 | 12,091 | 35,204 | 6,696 | |||||||||||||||
| Net realized gain (loss) |
272,606 | (20,866 | ) | (7,613 | ) | (202,621 | ) | 2,150 | ||||||||||||
| Capital gain distribution from mutual funds |
— | — | 38,268 | 29,083 | 20,915 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
335,328 | 98,262 | 387 | 535,724 | 78,417 | |||||||||||||||
| Increase (decrease) in net assets from operations |
676,476 | 202,207 | 43,133 | 397,390 | 108,178 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
295,846 | 430,095 | — | 143,311 | 9,947 | |||||||||||||||
| Payments for contract benefits or terminations |
(187,513 | ) | (37,596 | ) | (61,886 | ) | (245,997 | ) | — | |||||||||||
| Policy loans |
(11,075 | ) | 3,141 | (800 | ) | (3,952 | ) | (47 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(1,085,858 | ) | 191,889 | (2,323 | ) | 675,606 | 5,132 | |||||||||||||
| Contract maintenance charges |
(380,621 | ) | (338,742 | ) | (17,071 | ) | (160,092 | ) | (6,393 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(1,369,221 | ) | 248,787 | (82,080 | ) | 408,876 | 8,639 | |||||||||||||
| Increase (decrease) in net assets |
(692,745 | ) | 450,994 | (38,947 | ) | 806,266 | 116,817 | |||||||||||||
| Net assets at beginning of period |
7,031,736 | 3,419,989 | 442,065 | 3,344,635 | 399,416 | |||||||||||||||
| Net assets at end of period |
$ | 6,338,991 | $ | 3,870,983 | $ | 403,118 | $ | 4,150,901 | $ | 516,233 | ||||||||||
| Beginning units |
613,640 | 332,110 | 9,044 | 115,521 | 7,064 | |||||||||||||||
| Units issued |
120,649 | 67,406 | 711 | 34,616 | 226 | |||||||||||||||
| Units redeemed |
(231,244 | ) | (43,722 | ) | (2,360 | ) | (23,607 | ) | (103 | ) | ||||||||||
| Ending units |
503,045 | 355,794 | 7,395 | 126,530 | 7,187 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 118,872 | $ | 72,263 | $ | 4,414 | $ | 16,239 | $ | 2,263 | ||||||||||
| Mortality and expense risk and administrative charges |
(22,006 | ) | (8,948 | ) | (1,690 | ) | (13,007 | ) | (427 | ) | ||||||||||
| Net investment income (loss) |
96,866 | 63,315 | 2,724 | 3,232 | 1,836 | |||||||||||||||
| Net realized gain (loss) |
260,816 | (15,209 | ) | (3,639 | ) | 1,259 | 19,263 | |||||||||||||
| Capital gain distribution from mutual funds |
— | 18,892 | 66,344 | 754,302 | 62,640 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(1,078,128 | ) | (580,980 | ) | (108,392 | ) | (1,598,307 | ) | (176,176 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(720,446 | ) | (513,982 | ) | (42,963 | ) | (839,514 | ) | (92,437 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
335,210 | 414,433 | — | 128,190 | 9,112 | |||||||||||||||
| Payments for contract benefits or terminations |
(281,215 | ) | (32,166 | ) | (37,085 | ) | (83,484 | ) | (7,711 | ) | ||||||||||
| Policy loans |
(35,535 | ) | (2,309 | ) | (479 | ) | (8,392 | ) | (46 | ) | ||||||||||
| Transfers between sub-accounts (including fixed account), net |
868,716 | (119,725 | ) | (194 | ) | (87,242 | ) | 7,500 | ||||||||||||
| Contract maintenance charges |
(423,517 | ) | (382,783 | ) | (15,656 | ) | (158,095 | ) | (7,010 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
463,659 | (122,550 | ) | (53,414 | ) | (209,023 | ) | 1,845 | ||||||||||||
| Increase (decrease) in net assets |
(256,787 | ) | (636,532 | ) | (96,377 | ) | (1,048,537 | ) | (90,592 | ) | ||||||||||
| Net assets at beginning of period |
7,288,523 | 4,056,521 | 538,442 | 4,393,172 | 490,008 | |||||||||||||||
| Net assets at end of period |
$ | 7,031,736 | $ | 3,419,989 | $ | 442,065 | $ | 3,344,635 | $ | 399,416 | ||||||||||
| Beginning units |
577,271 | 343,790 | 10,155 | 122,057 | 7,039 | |||||||||||||||
| Units issued |
407,783 | 47,749 | 1,612 | 24,322 | 749 | |||||||||||||||
| Units redeemed |
(371,414 | ) | (59,429 | ) | (2,723 | ) | (30,858 | ) | (724 | ) | ||||||||||
| Ending units |
613,640 | 332,110 | 9,044 | 115,521 | 7,064 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
22 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| MFS VIT Growth Series Initial Class |
MFS VIT Investors Class |
MFS VIT New Discovery Series Initial Class |
MFS VIT Research Series Initial Class |
MFS VIT Total Return Series Initial Class |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | — | $ | 22,670 | $ | — | $ | 50,041 | $ | 90,938 | ||||||||||
| Mortality and expense risk and administrative charges |
(159,856 | ) | (23,790 | ) | (19,778 | ) | (51,520 | ) | (32,732 | ) | ||||||||||
| Net investment income (loss) |
(159,856 | ) | (1,120 | ) | (19,778 | ) | (1,479 | ) | 58,206 | |||||||||||
| Net realized gain (loss) |
470,413 | 77,725 | (1,366,629 | ) | 57,257 | 35,150 | ||||||||||||||
| Capital gain distribution from mutual funds |
2,418,565 | 174,463 | — | 528,860 | 189,397 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
6,525,757 | 277,648 | 2,330,909 | 1,344,564 | 126,761 | |||||||||||||||
| Increase (decrease) in net assets from operations |
9,254,879 | 528,716 | 944,502 | 1,929,202 | 409,514 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
927,712 | 102,600 | 387,293 | 423,141 | 245,279 | |||||||||||||||
| Payments for contract benefits or terminations |
(1,103,159 | ) | (270,005 | ) | (176,471 | ) | (316,084 | ) | (220,067 | ) | ||||||||||
| Policy loans |
(115,387 | ) | (9,782 | ) | (12,181 | ) | (43,283 | ) | (22,656 | ) | ||||||||||
| Transfers between sub-accounts (including fixed account), net |
(483,360 | ) | (75,861 | ) | 274,506 | (91,848 | ) | (3,802 | ) | |||||||||||
| Contract maintenance charges |
(1,356,309 | ) | (195,033 | ) | (350,948 | ) | (534,571 | ) | (342,485 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(2,130,503 | ) | (448,081 | ) | 122,199 | (562,645 | ) | (343,731 | ) | |||||||||||
| Increase (decrease) in net assets |
7,124,376 | 80,635 | 1,066,701 | 1,366,557 | 65,783 | |||||||||||||||
| Net assets at beginning of period |
27,113,408 | 3,154,524 | 6,934,898 | 9,136,996 | 4,487,081 | |||||||||||||||
| Net assets at end of period |
$ | 34,237,784 | $ | 3,235,159 | $ | 8,001,599 | $ | 10,503,553 | $ | 4,552,864 | ||||||||||
| Beginning units |
350,145 | 8,431 | 230,098 | 146,183 | 20,654 | |||||||||||||||
| Units issued |
76,340 | 58 | 77,439 | 33,576 | 989 | |||||||||||||||
| Units redeemed |
(105,503 | ) | (1,167 | ) | (74,369 | ) | (41,940 | ) | (3,164 | ) | ||||||||||
| Ending units |
320,982 | 7,322 | 233,168 | 137,819 | 18,479 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | — | $ | 23,208 | $ | — | $ | 47,736 | $ | 81,004 | ||||||||||
| Mortality and expense risk and administrative charges |
(168,710 | ) | (26,179 | ) | (24,808 | ) | (54,388 | ) | (34,719 | ) | ||||||||||
| Net investment income (loss) |
(168,710 | ) | (2,971 | ) | (24,808 | ) | (6,652 | ) | 46,285 | |||||||||||
| Net realized gain (loss) |
942,732 | 182,408 | (382,336 | ) | 142,712 | 117,337 | ||||||||||||||
| Capital gain distribution from mutual funds |
3,574,001 | 444,871 | 2,308,599 | 1,245,890 | 405,159 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(17,937,410 | ) | (1,337,236 | ) | (4,914,056 | ) | (3,525,682 | ) | (1,110,551 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(13,589,387 | ) | (712,928 | ) | (3,012,601 | ) | (2,143,732 | ) | (541,770 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
1,006,279 | 114,283 | 397,331 | 445,575 | 264,490 | |||||||||||||||
| Payments for contract benefits or terminations |
(987,113 | ) | (214,123 | ) | (243,021 | ) | (304,712 | ) | (241,962 | ) | ||||||||||
| Policy loans |
(123,989 | ) | (16,743 | ) | (22,269 | ) | (49,788 | ) | (21,051 | ) | ||||||||||
| Transfers between sub-accounts (including fixed account), net |
(352,750 | ) | (42,174 | ) | 146,345 | 46,747 | (13,169 | ) | ||||||||||||
| Contract maintenance charges |
(1,372,954 | ) | (191,359 | ) | (377,151 | ) | (529,067 | ) | (359,605 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(1,830,527 | ) | (350,116 | ) | (98,765 | ) | (391,245 | ) | (371,297 | ) | ||||||||||
| Increase (decrease) in net assets |
(15,419,914 | ) | (1,063,044 | ) | (3,111,366 | ) | (2,534,977 | ) | (913,067 | ) | ||||||||||
| Net assets at beginning of period |
42,533,322 | 4,217,568 | 10,046,264 | 11,671,973 | 5,400,148 | |||||||||||||||
| Net assets at end of period |
$ | 27,113,408 | $ | 3,154,524 | $ | 6,934,898 | $ | 9,136,996 | $ | 4,487,081 | ||||||||||
| Beginning units |
376,527 | 9,344 | 229,302 | 153,814 | 22,596 | |||||||||||||||
| Units issued |
133,240 | 207 | 57,305 | 51,695 | 3,179 | |||||||||||||||
| Units redeemed |
(159,622 | ) | (1,120 | ) | (56,509 | ) | (59,326 | ) | (5,121 | ) | ||||||||||
| Ending units |
350,145 | 8,431 | 230,098 | 146,183 | 20,654 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
23 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| MFS VIT Utilities Series Initial Class |
MFS VIT II Core Equity Portfolio Initial Class |
Morgan Stanley VIF Class I |
Neuberger Berman AMT Mid Cap Growth Portfolio Class I |
Neuberger Berman AMT Short Duration Bond Portfolio Class I |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 261,403 | $ | 72,688 | $ | — | $ | — | $ | 1,991 | ||||||||||
| Mortality and expense risk and administrative charges |
(55,019 | ) | (70,193 | ) | (10,725 | ) | (19,306 | ) | (43 | ) | ||||||||||
| Net investment income (loss) |
206,384 | 2,495 | (10,725 | ) | (19,306 | ) | 1,948 | |||||||||||||
| Net realized gain (loss) |
737,988 | 135,834 | (1,795,083 | ) | (170,501 | ) | (521 | ) | ||||||||||||
| Capital gain distribution from mutual funds |
404,481 | 648,337 | — | — | — | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(1,768,306 | ) | 1,959,225 | 3,407,591 | 1,376,761 | 995 | ||||||||||||||
| Increase (decrease) in net assets from operations |
(419,453 | ) | 2,745,891 | 1,601,783 | 1,186,954 | 2,422 | ||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
343,470 | 439,039 | 106,108 | 319,636 | 699 | |||||||||||||||
| Payments for contract benefits or terminations |
(394,119 | ) | (465,273 | ) | (158,406 | ) | (217,492 | ) | (2,966 | ) | ||||||||||
| Policy loans |
(61,702 | ) | (10,879 | ) | (9,289 | ) | (19,040 | ) | — | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
190,256 | (16,970 | ) | 1,389,820 | (22,393 | ) | (41 | ) | ||||||||||||
| Contract maintenance charges |
(483,494 | ) | (631,186 | ) | (158,368 | ) | (330,318 | ) | (2,276 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(405,589 | ) | (685,269 | ) | 1,169,865 | (269,607 | ) | (4,584 | ) | |||||||||||
| Increase (decrease) in net assets |
(825,042 | ) | 2,060,622 | 2,771,648 | 917,347 | (2,162 | ) | |||||||||||||
| Net assets at beginning of period |
7,974,565 | 12,552,003 | 3,363,578 | 6,646,906 | 43,407 | |||||||||||||||
| Net assets at end of period |
$ | 7,149,523 | $ | 14,612,625 | $ | 6,135,226 | $ | 7,564,253 | $ | 41,245 | ||||||||||
| Beginning units |
11,942 | 405,039 | 95,866 | 252,636 | 3,270 | |||||||||||||||
| Units issued |
217,676 | 60,566 | 81,920 | 64,858 | 57 | |||||||||||||||
| Units redeemed |
(119,428 | ) | (79,191 | ) | (60,549 | ) | (72,449 | ) | (390 | ) | ||||||||||
| Ending units |
110,190 | 386,414 | 117,237 | 245,045 | 2,937 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 192,678 | $ | 42,925 | $ | — | $ | — | $ | 1,716 | ||||||||||
| Mortality and expense risk and administrative charges |
(60,381 | ) | (75,662 | ) | (14,187 | ) | (22,699 | ) | (45 | ) | ||||||||||
| Net investment income (loss) |
132,297 | (32,737 | ) | (14,187 | ) | (22,699 | ) | 1,671 | ||||||||||||
| Net realized gain (loss) |
181,939 | 262,406 | (1,254,655 | ) | 129,524 | (158 | ) | |||||||||||||
| Capital gain distribution from mutual funds |
305,402 | 1,508,627 | 2,302,959 | 1,347,233 | — | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(617,520 | ) | (4,640,244 | ) | (6,183,824 | ) | (4,209,062 | ) | (4,008 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
2,118 | (2,901,948 | ) | (5,149,707 | ) | (2,755,004 | ) | (2,495 | ) | |||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
338,805 | 458,091 | 118,915 | 329,423 | 707 | |||||||||||||||
| Payments for contract benefits or terminations |
(160,080 | ) | (625,080 | ) | (97,914 | ) | (227,401 | ) | — | |||||||||||
| Policy loans |
(36,879 | ) | (67,076 | ) | (5,981 | ) | (15,964 | ) | — | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(72,586 | ) | (66,995 | ) | (192,322 | ) | (148,027 | ) | — | |||||||||||
| Contract maintenance charges |
(474,229 | ) | (632,302 | ) | (147,445 | ) | (334,784 | ) | (2,213 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(404,969 | ) | (933,362 | ) | (324,747 | ) | (396,753 | ) | (1,506 | ) | ||||||||||
| Increase (decrease) in net assets |
(402,851 | ) | (3,835,310 | ) | (5,474,454 | ) | (3,151,757 | ) | (4,001 | ) | ||||||||||
| Net assets at beginning of period |
8,377,416 | 16,387,313 | 8,838,032 | 9,798,663 | 47,408 | |||||||||||||||
| Net assets at end of period |
$ | 7,974,565 | $ | 12,552,003 | $ | 3,363,578 | $ | 6,646,906 | $ | 43,407 | ||||||||||
| Beginning units |
12,545 | 436,617 | 100,880 | 261,753 | 3,383 | |||||||||||||||
| Units issued |
257 | 92,283 | 58,816 | 78,512 | 53 | |||||||||||||||
| Units redeemed |
(860 | ) | (123,861 | ) | (63,830 | ) | (87,629 | ) | (166 | ) | ||||||||||
| Ending units |
11,942 | 405,039 | 95,866 | 252,636 | 3,270 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
24 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| Neuberger Berman Equity Portfolio Class I |
PIMCO Portfolio |
PIMCO Global Bond Opportunities Portfolio (Unhedged) Administrative Class |
PIMCO Real Return Portfolio Administrative Class |
PIMCO Short-Term Portfolio Administrative Class |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 1,704 | $ | 159,867 | $ | 10,697 | $ | 202,598 | $ | 197,136 | ||||||||||
| Mortality and expense risk and administrative charges |
(1,248 | ) | (3,290 | ) | (1,224 | ) | (17,137 | ) | (13,170 | ) | ||||||||||
| Net investment income (loss) |
456 | 156,577 | 9,473 | 185,461 | 183,966 | |||||||||||||||
| Net realized gain (loss) |
5,639 | (65,350 | ) | (20,476 | ) | (222,629 | ) | (7,212 | ) | |||||||||||
| Capital gain distribution from mutual funds |
8,041 | — | 5,279 | — | — | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
103,320 | (173,408 | ) | 28,920 | 266,524 | 59,665 | ||||||||||||||
| Increase (decrease) in net assets from operations |
117,456 | (82,181 | ) | 23,196 | 229,356 | 236,419 | ||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
10,389 | 78,048 | 47,037 | 483,437 | 320,105 | |||||||||||||||
| Payments for contract benefits or terminations |
(2,109 | ) | (3,745 | ) | (38,978 | ) | (229,112 | ) | (90,656 | ) | ||||||||||
| Policy loans |
(2,121 | ) | 9,398 | (9,744 | ) | (8,042 | ) | (9,023 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(50 | ) | (49,362 | ) | 18,777 | (71,623 | ) | (1,053,423 | ) | |||||||||||
| Contract maintenance charges |
(13,400 | ) | (68,307 | ) | (38,032 | ) | (633,558 | ) | (334,087 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(7,291 | ) | (33,968 | ) | (20,940 | ) | (458,898 | ) | (1,167,084 | ) | ||||||||||
| Increase (decrease) in net assets |
110,165 | (116,149 | ) | 2,256 | (229,542 | ) | (930,665 | ) | ||||||||||||
| Net assets at beginning of period |
444,659 | 1,052,821 | 487,098 | 6,961,976 | 5,184,483 | |||||||||||||||
| Net assets at end of period |
$ | 554,824 | $ | 936,672 | $ | 489,354 | $ | 6,732,434 | $ | 4,253,818 | ||||||||||
| Beginning units |
24,761 | 100,952 | 48,477 | 491,982 | 435,034 | |||||||||||||||
| Units issued |
1,551 | 20,858 | 9,376 | 133,147 | 438,989 | |||||||||||||||
| Units redeemed |
(2,189 | ) | (25,859 | ) | (11,219 | ) | (169,876 | ) | (531,617 | ) | ||||||||||
| Ending units |
24,123 | 95,951 | 46,634 | 455,253 | 342,406 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 2,086 | $ | 214,610 | $ | 7,395 | $ | 536,460 | $ | 90,558 | ||||||||||
| Mortality and expense risk and administrative charges |
(1,179 | ) | (3,455 | ) | (1,251 | ) | (25,421 | ) | (17,926 | ) | ||||||||||
| Net investment income (loss) |
907 | 211,155 | 6,144 | 511,039 | 72,632 | |||||||||||||||
| Net realized gain (loss) |
1,930 | 49,007 | (9,292 | ) | (160,135 | ) | (77,996 | ) | ||||||||||||
| Capital gain distribution from mutual funds |
44,311 | — | 7,281 | — | 9,252 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(149,765 | ) | (211,495 | ) | (65,654 | ) | (1,379,401 | ) | (53,498 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(102,617 | ) | 48,667 | (61,521 | ) | (1,028,497 | ) | (49,610 | ) | |||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
10,214 | 79,997 | 53,582 | 535,574 | 342,962 | |||||||||||||||
| Payments for contract benefits or terminations |
(343 | ) | (32,900 | ) | (8,343 | ) | (351,934 | ) | (1,255,765 | ) | ||||||||||
| Policy loans |
(350 | ) | (12,744 | ) | (1,650 | ) | (2,258 | ) | 5,933 | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
29 | 229,502 | (5,798 | ) | 59,562 | 760,490 | ||||||||||||||
| Contract maintenance charges |
(12,399 | ) | (64,626 | ) | (44,340 | ) | (687,035 | ) | (350,963 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(2,849 | ) | 199,229 | (6,549 | ) | (446,091 | ) | (497,343 | ) | |||||||||||
| Increase (decrease) in net assets |
(105,466 | ) | 247,896 | (68,070 | ) | (1,474,588 | ) | (546,953 | ) | |||||||||||
| Net assets at beginning of period |
550,125 | 804,925 | 555,168 | 8,436,564 | 5,731,436 | |||||||||||||||
| Net assets at end of period |
$ | 444,659 | $ | 1,052,821 | $ | 487,098 | $ | 6,961,976 | $ | 5,184,483 | ||||||||||
| Beginning units |
25,139 | 88,218 | 48,888 | 522,699 | 482,749 | |||||||||||||||
| Units issued |
616 | 38,337 | 8,761 | 218,882 | 494,996 | |||||||||||||||
| Units redeemed |
(994 | ) | (25,603 | ) | (9,172 | ) | (249,599 | ) | (542,711 | ) | ||||||||||
| Ending units |
24,761 | 100,952 | 48,477 | 491,982 | 435,034 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
25 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| PIMCO Total Return Portfolio Administrative Class |
Pioneer Fund VCT Portfolio Class I |
Pioneer Mid Cap Value VCT Portfolio Class I |
Pioneer Select Mid Cap Growth VCT Portfolio Class I |
Putnam VT Diversified Income Fund Class IB |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 431,812 | $ | 15,788 | $ | 19,573 | $ | — | $ | 253,546 | ||||||||||
| Mortality and expense risk and administrative charges |
(35,157 | ) | (3,772 | ) | (3,321 | ) | (5,368 | ) | (14,335 | ) | ||||||||||
| Net investment income (loss) |
396,655 | 12,016 | 16,252 | (5,368 | ) | 239,211 | ||||||||||||||
| Net realized gain (loss) |
(573,825 | ) | (23,976 | ) | (81,620 | ) | (141,022 | ) | (290,956 | ) | ||||||||||
| Capital gain distribution from mutual funds |
— | 74,312 | 113,714 | — | — | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
848,459 | 398,433 | 74,019 | 656,776 | 244,144 | |||||||||||||||
| Increase (decrease) in net assets from operations |
671,289 | 460,785 | 122,365 | 510,386 | 192,399 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
914,817 | 43,065 | 49,881 | 123,802 | 126,958 | |||||||||||||||
| Payments for contract benefits or terminations |
(315,986 | ) | (20,305 | ) | (19,749 | ) | (109,952 | ) | (42,421 | ) | ||||||||||
| Policy loans |
(6,126 | ) | (100 | ) | 4,717 | (19,234 | ) | (19,472 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(621,359 | ) | (3,430 | ) | 87,139 | 3,603 | 292,775 | |||||||||||||
| Contract maintenance charges |
(1,029,566 | ) | (74,291 | ) | (36,693 | ) | (160,532 | ) | (329,774 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(1,058,220 | ) | (55,061 | ) | 85,295 | (162,313 | ) | 28,066 | ||||||||||||
| Increase (decrease) in net assets |
(386,931 | ) | 405,724 | 207,660 | 348,073 | 220,465 | ||||||||||||||
| Net assets at beginning of period |
12,871,503 | 1,638,726 | 965,818 | 2,838,193 | 4,301,269 | |||||||||||||||
| Net assets at end of period |
$ | 12,484,572 | $ | 2,044,450 | $ | 1,173,478 | $ | 3,186,266 | $ | 4,521,734 | ||||||||||
| Beginning units |
943,886 | 49,838 | 38,551 | 84,389 | 237,959 | |||||||||||||||
| Units issued |
246,032 | 2,754 | 6,964 | 4,673 | 49,089 | |||||||||||||||
| Units redeemed |
(313,287 | ) | (4,380 | ) | (3,868 | ) | (9,337 | ) | (45,684 | ) | ||||||||||
| Ending units |
876,631 | 48,212 | 41,647 | 79,725 | 241,364 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 331,471 | $ | 11,745 | $ | 20,521 | $ | — | $ | 294,071 | ||||||||||
| Mortality and expense risk and administrative charges |
(41,358 | ) | (4,459 | ) | (3,396 | ) | (7,751 | ) | (15,822 | ) | ||||||||||
| Net investment income (loss) |
290,113 | 7,286 | 17,125 | (7,751 | ) | 278,249 | ||||||||||||||
| Net realized gain (loss) |
(437,863 | ) | 20,960 | (49,146 | ) | (202,269 | ) | (232,978 | ) | |||||||||||
| Capital gain distribution from mutual funds |
— | 282,730 | 396,828 | 616,466 | 92,864 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(1,936,160 | ) | (782,733 | ) | (438,380 | ) | (1,718,877 | ) | (258,555 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(2,083,910 | ) | (471,757 | ) | (73,573 | ) | (1,312,431 | ) | (120,420 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
961,571 | 42,793 | 46,363 | 120,306 | 139,468 | |||||||||||||||
| Payments for contract benefits or terminations |
(383,860 | ) | (31,682 | ) | (32,889 | ) | (53,826 | ) | (239,435 | ) | ||||||||||
| Policy loans |
7,042 | (13,354 | ) | (27,708 | ) | 2,281 | (13,396 | ) | ||||||||||||
| Transfers between sub-accounts (including fixed account), net |
1,151,716 | (942,015 | ) | (53,036 | ) | 7,961 | 48,816 | |||||||||||||
| Contract maintenance charges |
(1,041,910 | ) | (71,530 | ) | (33,983 | ) | (157,628 | ) | (301,757 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
694,559 | (1,015,788 | ) | (101,253 | ) | (80,906 | ) | (366,304 | ) | |||||||||||
| Increase (decrease) in net assets |
(1,389,351 | ) | (1,487,545 | ) | (174,826 | ) | (1,393,337 | ) | (486,724 | ) | ||||||||||
| Net assets at beginning of period |
14,260,854 | 3,126,271 | 1,140,644 | 4,231,530 | 4,787,993 | |||||||||||||||
| Net assets at end of period |
$ | 12,871,503 | $ | 1,638,726 | $ | 965,818 | $ | 2,838,193 | $ | 4,301,269 | ||||||||||
| Beginning units |
904,727 | 76,616 | 42,750 | 87,953 | 255,644 | |||||||||||||||
| Units issued |
268,528 | 7,257 | 5,808 | 29,264 | 32,745 | |||||||||||||||
| Units redeemed |
(229,369 | ) | (34,035 | ) | (10,007 | ) | (32,828 | ) | (50,430 | ) | ||||||||||
| Ending units |
943,886 | 49,838 | 38,551 | 84,389 | 237,959 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
26 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| Putnam VT International Value Fund Class IB |
Putnam VT Large Cap Growth Fund Class IB |
Putnam VT Large Cap Value Fund Class IB |
Putnam VT Small Cap Value Fund Class IB |
Putnam VT Sustainable Leaders Fund Class IB |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 64,748 | $ | — | $ | 326,693 | $ | 250 | $ | 502 | ||||||||||
| Mortality and expense risk and administrative charges |
(11,610 | ) | (303 | ) | (44,858 | ) | (255 | ) | (297 | ) | ||||||||||
| Net investment income (loss) |
53,138 | (303 | ) | 281,835 | (5 | ) | 205 | |||||||||||||
| Net realized gain (loss) |
153,286 | (15,577 | ) | 399,396 | (18,462 | ) | 1,121 | |||||||||||||
| Capital gain distribution from mutual funds |
— | 1,066 | 915,773 | 19,277 | 3,078 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
493,073 | 45,062 | 748,604 | 32,287 | 18,335 | |||||||||||||||
| Increase (decrease) in net assets from operations |
699,497 | 30,248 | 2,345,608 | 33,097 | 22,739 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
254,887 | 6,270 | 483,759 | 7,169 | 5,160 | |||||||||||||||
| Payments for contract benefits or terminations |
(122,723 | ) | (30,444 | ) | (502,243 | ) | (60,295 | ) | — | |||||||||||
| Policy loans |
(11,732 | ) | (60 | ) | (95,775 | ) | (101 | ) | — | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
260,701 | 1,850 | 207,253 | (636 | ) | (517 | ) | |||||||||||||
| Contract maintenance charges |
(309,214 | ) | (5,830 | ) | (721,059 | ) | (19,681 | ) | (4,004 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
71,919 | (28,214 | ) | (628,065 | ) | (73,544 | ) | 639 | ||||||||||||
| Increase (decrease) in net assets |
771,416 | 2,034 | 1,717,543 | (40,447 | ) | 23,378 | ||||||||||||||
| Net assets at beginning of period |
3,442,017 | 91,507 | 15,715,274 | 191,387 | 87,697 | |||||||||||||||
| Net assets at end of period |
$ | 4,213,433 | $ | 93,541 | $ | 17,432,817 | $ | 150,940 | $ | 111,075 | ||||||||||
| Beginning units |
301,692 | 13,525 | 600,905 | 6,901 | 2,048 | |||||||||||||||
| Units issued |
316,587 | 3,005 | 63,991 | 307 | 610 | |||||||||||||||
| Units redeemed |
(307,452 | ) | (6,948 | ) | (89,092 | ) | (2,851 | ) | (610 | ) | ||||||||||
| Ending units |
310,827 | 9,582 | 575,804 | 4,357 | 2,048 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 75,409 | $ | — | $ | 236,827 | $ | 352 | $ | 495 | ||||||||||
| Mortality and expense risk and administrative charges |
(11,617 | ) | (377 | ) | (51,133 | ) | (456 | ) | (300 | ) | ||||||||||
| Net investment income (loss) |
63,792 | (377 | ) | 185,694 | (104 | ) | 195 | |||||||||||||
| Net realized gain (loss) |
(24,411 | ) | 2,769 | 434,032 | 9,695 | 5,783 | ||||||||||||||
| Capital gain distribution from mutual funds |
131,510 | 18,162 | 1,372,058 | 28,873 | 13,787 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(454,113 | ) | (61,047 | ) | (2,590,214 | ) | (68,962 | ) | (45,940 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(283,222 | ) | (40,493 | ) | (598,430 | ) | (30,498 | ) | (26,175 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
275,264 | 6,187 | 501,498 | 5,401 | 3,508 | |||||||||||||||
| Payments for contract benefits or terminations |
(151,076 | ) | — | (422,816 | ) | (167 | ) | — | ||||||||||||
| Policy loans |
(8,787 | ) | (42 | ) | (9,876 | ) | (1,192 | ) | — | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(18,195 | ) | (433 | ) | (67,377 | ) | (2,132 | ) | 1,389 | |||||||||||
| Contract maintenance charges |
(301,309 | ) | (5,310 | ) | (791,312 | ) | (16,880 | ) | (3,981 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(204,103 | ) | 402 | (789,883 | ) | (14,970 | ) | 916 | ||||||||||||
| Increase (decrease) in net assets |
(487,325 | ) | (40,091 | ) | (1,388,313 | ) | (45,468 | ) | (25,259 | ) | ||||||||||
| Net assets at beginning of period |
3,929,342 | 131,598 | 17,103,587 | 236,855 | 112,956 | |||||||||||||||
| Net assets at end of period |
$ | 3,442,017 | $ | 91,507 | $ | 15,715,274 | $ | 191,387 | $ | 87,697 | ||||||||||
| Beginning units |
319,635 | 13,532 | 634,776 | 7,491 | 2,045 | |||||||||||||||
| Units issued |
123,562 | 5,113 | 103,554 | 2,213 | 705 | |||||||||||||||
| Units redeemed |
(141,505 | ) | (5,120 | ) | (137,425 | ) | (2,803 | ) | (702 | ) | ||||||||||
| Ending units |
301,692 | 13,525 | 600,905 | 6,901 | 2,048 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
27 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| SST SA Multi- Managed Mid Cap Value Portfolio Class 3 |
SAST SA AB Growth Portfolio Class 1 |
SAST SA DFA Ultra Short Bond Portfolio Class 1 |
SAST SA Federated Hermes Corporate Bond Portfolio Class 1 |
SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1 |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 1,647 | $ | — | $ | 15,401 | $ | 6,627 | $ | 5,586 | ||||||||||
| Mortality and expense risk and administrative charges |
(408 | ) | (16,369 | ) | (1,725 | ) | (382 | ) | (592 | ) | ||||||||||
| Net investment income (loss) |
1,239 | (16,369 | ) | 13,676 | 6,245 | 4,994 | ||||||||||||||
| Net realized gain (loss) |
193 | 120,093 | (1,157 | ) | (5,046 | ) | (6,193 | ) | ||||||||||||
| Capital gain distribution from mutual funds |
13,174 | 619,690 | — | — | 14,431 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
7,071 | 1,697,436 | 44,850 | 13,567 | 20,622 | |||||||||||||||
| Increase (decrease) in net assets from operations |
21,677 | 2,420,850 | 57,369 | 14,766 | 33,854 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
18,228 | 304,032 | 70,771 | 9,786 | 14,046 | |||||||||||||||
| Payments for contract benefits or terminations |
(3,807 | ) | (247,387 | ) | (1,462 | ) | (24,930 | ) | (11,176 | ) | ||||||||||
| Policy loans |
505 | (72,777 | ) | (71 | ) | (50 | ) | (1,755 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
3,459 | 3,342 | (29 | ) | 294 | 518 | ||||||||||||||
| Contract maintenance charges |
(14,225 | ) | (466,351 | ) | (72,815 | ) | (22,010 | ) | (29,535 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
4,160 | (479,141 | ) | (3,606 | ) | (36,910 | ) | (27,902 | ) | |||||||||||
| Increase (decrease) in net assets |
25,837 | 1,941,709 | 53,763 | (22,144 | ) | 5,952 | ||||||||||||||
| Net assets at beginning of period |
155,427 | 7,176,189 | 1,271,272 | 210,262 | 265,871 | |||||||||||||||
| Net assets at end of period |
$ | 181,264 | $ | 9,117,898 | $ | 1,325,035 | $ | 188,118 | $ | 271,823 | ||||||||||
| Beginning units |
10,104 | 183,634 | 110,280 | 7,137 | 5,200 | |||||||||||||||
| Units issued |
1,496 | 13,951 | 6,062 | 334 | 306 | |||||||||||||||
| Units redeemed |
(1,242 | ) | (24,442 | ) | (6,331 | ) | (1,552 | ) | (832 | ) | ||||||||||
| Ending units |
10,358 | 173,143 | 110,011 | 5,919 | 4,674 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 836 | $ | — | $ | — | $ | 8,566 | $ | 2,900 | ||||||||||
| Mortality and expense risk and administrative charges |
(412 | ) | (16,624 | ) | (1,740 | ) | (452 | ) | (1,031 | ) | ||||||||||
| Net investment income (loss) |
424 | (16,624 | ) | (1,740 | ) | 8,114 | 1,869 | |||||||||||||
| Net realized gain (loss) |
2,660 | 301,900 | (5,474 | ) | (1,295 | ) | (4,747 | ) | ||||||||||||
| Capital gain distribution from mutual funds |
22,684 | 1,256,470 | — | 792 | 24,680 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(41,441 | ) | (4,631,177 | ) | (16,325 | ) | (44,732 | ) | (182,656 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(15,673 | ) | (3,089,431 | ) | (23,539 | ) | (37,121 | ) | (160,854 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
20,101 | 270,092 | 40,789 | 8,450 | 16,613 | |||||||||||||||
| Payments for contract benefits or terminations |
(3,058 | ) | (337,035 | ) | (12,355 | ) | — | (87,487 | ) | |||||||||||
| Policy loans |
294 | (76,246 | ) | (72 | ) | (194 | ) | (1,270 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(7,584 | ) | (145,480 | ) | (64,354 | ) | (4 | ) | (120,779 | ) | ||||||||||
| Contract maintenance charges |
(14,587 | ) | (451,009 | ) | (69,056 | ) | (20,605 | ) | (29,590 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(4,834 | ) | (739,678 | ) | (105,048 | ) | (12,353 | ) | (222,513 | ) | ||||||||||
| Increase (decrease) in net assets |
(20,507 | ) | (3,829,109 | ) | (128,587 | ) | (49,474 | ) | (383,367 | ) | ||||||||||
| Net assets at beginning of period |
175,934 | 11,005,298 | 1,399,859 | 259,736 | 649,238 | |||||||||||||||
| Net assets at end of period |
$ | 155,427 | $ | 7,176,189 | $ | 1,271,272 | $ | 210,262 | $ | 265,871 | ||||||||||
| Beginning units |
10,403 | 200,658 | 119,414 | 7,543 | 9,259 | |||||||||||||||
| Units issued |
1,311 | 8,203 | 3,606 | 280 | 427 | |||||||||||||||
| Units redeemed |
(1,610 | ) | (25,227 | ) | (12,740 | ) | (686 | ) | (4,486 | ) | ||||||||||
| Ending units |
10,104 | 183,634 | 110,280 | 7,137 | 5,200 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
28 |
SEPARATE ACCOUNT VL-R
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 Systematic U.S. Large Cap Value Portfolio Class 1 |
SAST SA Goldman Sachs Global Bond Portfolio Class 1 |
SAST SA Invesco Growth Opportunities Portfolio Class 1 |
SAST SA Janus Focused Growth Portfolio Class 1 |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 64,772 | $ | 8,647 | $ | — | $ | — | $ | — | ||||||||||
| Mortality and expense risk and administrative charges |
(5,136 | ) | (1,074 | ) | (255 | ) | (307 | ) | (937 | ) | ||||||||||
| Net investment income (loss) |
59,636 | 7,573 | (255 | ) | (307 | ) | (937 | ) | ||||||||||||
| Net realized gain (loss) |
(45,145 | ) | (1,574 | ) | (1,758 | ) | (2,746 | ) | 1,461 | |||||||||||
| Capital gain distribution from mutual funds |
259,173 | — | — | — | — | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(92,368 | ) | 33,182 | 8,212 | 17,484 | 306,173 | ||||||||||||||
| Increase (decrease) in net assets from operations |
181,296 | 39,181 | 6,199 | 14,431 | 306,697 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
112,097 | 7,308 | 11,972 | 2,104 | 41,325 | |||||||||||||||
| Payments for contract benefits or terminations |
(56,332 | ) | — | (311 | ) | — | (8,051 | ) | ||||||||||||
| Policy loans |
2,465 | (5 | ) | (721 | ) | (7 | ) | 914 | ||||||||||||
| Transfers between sub-accounts (including fixed account), net |
4,341 | (8 | ) | (754 | ) | 2 | 33 | |||||||||||||
| Contract maintenance charges |
(130,042 | ) | (18,838 | ) | (7,936 | ) | (4,698 | ) | (46,248 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(67,471 | ) | (11,543 | ) | 2,250 | (2,599 | ) | (12,027 | ) | |||||||||||
| Increase (decrease) in net assets |
113,825 | 27,638 | 8,449 | 11,832 | 294,670 | |||||||||||||||
| Net assets at beginning of period |
2,637,387 | 489,709 | 148,801 | 119,737 | 783,948 | |||||||||||||||
| Net assets at end of period |
$ | 2,751,212 | $ | 517,347 | $ | 157,250 | $ | 131,569 | $ | 1,078,618 | ||||||||||
| Beginning units |
41,072 | 9,191 | 9,604 | 7,420 | 19,540 | |||||||||||||||
| Units issued |
5,550 | 138 | 764 | 124 | 1,434 | |||||||||||||||
| Units redeemed |
(6,641 | ) | (351 | ) | (625 | ) | (279 | ) | (1,660 | ) | ||||||||||
| Ending units |
39,981 | 8,978 | 9,743 | 7,265 | 19,314 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 46,064 | $ | 9,471 | $ | — | $ | — | $ | — | ||||||||||
| Mortality and expense risk and administrative charges |
(5,502 | ) | (1,113 | ) | (270 | ) | (329 | ) | (913 | ) | ||||||||||
| Net investment income (loss) |
40,562 | 8,358 | (270 | ) | (329 | ) | (913 | ) | ||||||||||||
| Net realized gain (loss) |
70,134 | 27,053 | (6,031 | ) | (1,149 | ) | 22,105 | |||||||||||||
| Capital gain distribution from mutual funds |
438,690 | 114,658 | — | 31,349 | 184,487 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(582,078 | ) | (197,208 | ) | (29,145 | ) | (96,912 | ) | (622,358 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(32,692 | ) | (47,139 | ) | (35,446 | ) | (67,041 | ) | (416,679 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
71,414 | 7,028 | 9,358 | 2,028 | 33,131 | |||||||||||||||
| Payments for contract benefits or terminations |
(49,276 | ) | (126,239 | ) | — | — | (18,759 | ) | ||||||||||||
| Policy loans |
(20,043 | ) | (6 | ) | (4,841 | ) | (7 | ) | (23,791 | ) | ||||||||||
| Transfers between sub-accounts (including fixed account), net |
(16,095 | ) | (1,155 | ) | 72 | (1 | ) | (1,246 | ) | |||||||||||
| Contract maintenance charges |
(128,397 | ) | (17,575 | ) | (7,632 | ) | (4,442 | ) | (44,923 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(142,397 | ) | (137,947 | ) | (3,043 | ) | (2,422 | ) | (55,588 | ) | ||||||||||
| Increase (decrease) in net assets |
(175,089 | ) | (185,086 | ) | (38,489 | ) | (69,463 | ) | (472,267 | ) | ||||||||||
| Net assets at beginning of period |
2,812,476 | 674,795 | 187,290 | 189,200 | 1,256,215 | |||||||||||||||
| Net assets at end of period |
$ | 2,637,387 | $ | 489,709 | $ | 148,801 | $ | 119,737 | $ | 783,948 | ||||||||||
| Beginning units |
43,122 | 11,666 | 9,777 | 7,559 | 20,788 | |||||||||||||||
| Units issued |
5,757 | 141 | 1,983 | 115 | 1,368 | |||||||||||||||
| Units redeemed |
(7,807 | ) | (2,616 | ) | (2,156 | ) | (254 | ) | (2,616 | ) | ||||||||||
| Ending units |
41,072 | 9,191 | 9,604 | 7,420 | 19,540 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
29 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| SAST SA JPMorgan Diversified Balanced Portfolio Class 1 |
SAST SA JPMorgan Emerging Markets Portfolio Class 1 |
SAST SA JPMorgan Equity-Income Portfolio Class 1 |
SAST SA JPMorgan Global Equities Portfolio Class 1 |
SAST SA JPMorgan Large Cap Core Portfolio Class 1 |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 71,039 | $ | 11,732 | $ | 77,594 | $ | 5,047 | $ | 3,074 | ||||||||||
| Mortality and expense risk and administrative charges |
(12,410 | ) | (675 | ) | (4,848 | ) | (745 | ) | (880 | ) | ||||||||||
| Net investment income (loss) |
58,629 | 11,057 | 72,746 | 4,302 | 2,194 | |||||||||||||||
| Net realized gain (loss) |
(191,817 | ) | 6,634 | 39,216 | (6,969 | ) | 2,497 | |||||||||||||
| Capital gain distribution from mutual funds |
— | — | 288,993 | 11,428 | 12,763 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
787,311 | 11,065 | (265,783 | ) | 62,608 | 79,813 | ||||||||||||||
| Increase (decrease) in net assets from operations |
654,123 | 28,756 | 135,172 | 71,369 | 97,267 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
277,190 | 25,393 | 71,293 | 14,852 | 20,633 | |||||||||||||||
| Payments for contract benefits or terminations |
(265,471 | ) | (23,260 | ) | (82,886 | ) | (9,586 | ) | (2,588 | ) | ||||||||||
| Policy loans |
(8,563 | ) | (3,639 | ) | 753 | (5,442 | ) | (15,103 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(287,510 | ) | (1,513 | ) | 5,495 | (86 | ) | 67 | ||||||||||||
| Contract maintenance charges |
(308,731 | ) | (17,901 | ) | (127,852 | ) | (21,166 | ) | (29,136 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(593,085 | ) | (20,920 | ) | (133,197 | ) | (21,428 | ) | (26,127 | ) | ||||||||||
| Increase (decrease) in net assets |
61,038 | 7,836 | 1,975 | 49,941 | 71,140 | |||||||||||||||
| Net assets at beginning of period |
4,681,073 | 295,002 | 3,211,424 | 312,939 | 368,610 | |||||||||||||||
| Net assets at end of period |
$ | 4,742,111 | $ | 302,838 | $ | 3,213,399 | $ | 362,880 | $ | 439,750 | ||||||||||
| Beginning units |
236,228 | 11,016 | 95,924 | 14,302 | 10,564 | |||||||||||||||
| Units issued |
33,758 | 3,550 | 3,705 | 1,626 | 596 | |||||||||||||||
| Units redeemed |
(60,212 | ) | (4,292 | ) | (7,716 | ) | (2,508 | ) | (1,253 | ) | ||||||||||
| Ending units |
209,774 | 10,274 | 91,913 | 13,420 | 9,907 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 57,380 | $ | 9,240 | $ | 62,210 | $ | 5,899 | $ | 3,923 | ||||||||||
| Mortality and expense risk and administrative charges |
(14,616 | ) | (727 | ) | (5,130 | ) | (761 | ) | (927 | ) | ||||||||||
| Net investment income (loss) |
42,764 | 8,513 | 57,080 | 5,138 | 2,996 | |||||||||||||||
| Net realized gain (loss) |
(46,033 | ) | 959 | 159,536 | 4,453 | 20,575 | ||||||||||||||
| Capital gain distribution from mutual funds |
652,697 | 2,616 | 361,333 | 57,697 | 90,303 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(1,577,414 | ) | (113,290 | ) | (649,758 | ) | (130,328 | ) | (217,806 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(927,986 | ) | (101,202 | ) | (71,809 | ) | (63,040 | ) | (103,932 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
270,031 | 18,049 | 70,578 | 13,429 | 17,597 | |||||||||||||||
| Payments for contract benefits or terminations |
(75,052 | ) | (9,853 | ) | (186,398 | ) | (19,826 | ) | (28,596 | ) | ||||||||||
| Policy loans |
(45,249 | ) | 2,051 | (59,311 | ) | (5,426 | ) | (22,966 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(4,712 | ) | 2,278 | 11,532 | (2,101 | ) | 10,140 | |||||||||||||
| Contract maintenance charges |
(314,307 | ) | (19,655 | ) | (127,472 | ) | (21,880 | ) | (29,414 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(169,289 | ) | (7,130 | ) | (291,071 | ) | (35,804 | ) | (53,239 | ) | ||||||||||
| Increase (decrease) in net assets |
(1,097,275 | ) | (108,332 | ) | (362,880 | ) | (98,844 | ) | (157,171 | ) | ||||||||||
| Net assets at beginning of period |
5,778,348 | 403,334 | 3,574,304 | 411,783 | 525,781 | |||||||||||||||
| Net assets at end of period |
$ | 4,681,073 | $ | 295,002 | $ | 3,211,424 | $ | 312,939 | $ | 368,610 | ||||||||||
| Beginning units |
244,722 | 11,204 | 104,534 | 15,808 | 12,002 | |||||||||||||||
| Units issued |
29,831 | 845 | 3,323 | 1,023 | 816 | |||||||||||||||
| Units redeemed |
(38,325 | ) | (1,033 | ) | (11,933 | ) | (2,529 | ) | (2,254 | ) | ||||||||||
| Ending units |
236,228 | 11,016 | 95,924 | 14,302 | 10,564 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
30 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| SAST SA JPMorgan MFS Core Bond Portfolio Class 1 |
SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1 |
SAST SA MFS Blue Portfolio Class 1 |
SAST SA MFS |
SAST SA MFS Total Return Portfolio Class 1 |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 2,093 | $ | — | $ | 350 | $ | 5,211 | $ | 15,042 | ||||||||||
| Mortality and expense risk and administrative charges |
(122 | ) | (15,822 | ) | (86 | ) | (1,412 | ) | (1,470 | ) | ||||||||||
| Net investment income (loss) |
1,971 | (15,822 | ) | 264 | 3,799 | 13,572 | ||||||||||||||
| Net realized gain (loss) |
(1,393 | ) | (430,814 | ) | 3,595 | 2,403 | 1,701 | |||||||||||||
| Capital gain distribution from mutual funds |
— | — | 1,171 | 50,893 | 25,797 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
3,783 | 2,077,323 | 18,269 | 45,613 | 33,256 | |||||||||||||||
| Increase (decrease) in net assets from operations |
4,361 | 1,630,687 | 23,299 | 102,708 | 74,326 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
5,418 | 241,047 | 1,687 | 24,704 | 64,208 | |||||||||||||||
| Payments for contract benefits or terminations |
— | (171,933 | ) | — | (22,844 | ) | (51,339 | ) | ||||||||||||
| Policy loans |
(1 | ) | (44,555 | ) | (2 | ) | 3,564 | (77 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(9 | ) | (11,060 | ) | 4 | (15 | ) | (531 | ) | |||||||||||
| Contract maintenance charges |
(6,816 | ) | (336,345 | ) | (10,089 | ) | (37,260 | ) | (67,786 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(1,408 | ) | (322,846 | ) | (8,400 | ) | (31,851 | ) | (55,525 | ) | ||||||||||
| Increase (decrease) in net assets |
2,953 | 1,307,841 | 14,899 | 70,857 | 18,801 | |||||||||||||||
| Net assets at beginning of period |
69,406 | 7,241,284 | 60,237 | 565,823 | 783,827 | |||||||||||||||
| Net assets at end of period |
$ | 72,359 | $ | 8,549,125 | $ | 75,136 | $ | 636,680 | $ | 802,628 | ||||||||||
| Beginning units |
2,898 | 380,981 | 2,876 | 15,680 | 22,437 | |||||||||||||||
| Units issued |
221 | 85,730 | 68 | 4,182 | 3,219 | |||||||||||||||
| Units redeemed |
(278 | ) | (100,365 | ) | (398 | ) | (5,007 | ) | (4,795 | ) | ||||||||||
| Ending units |
2,841 | 366,346 | 2,546 | 14,855 | 20,861 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 1,825 | $ | — | $ | — | $ | 7,060 | $ | 12,795 | ||||||||||
| Mortality and expense risk and administrative charges |
(105 | ) | (17,115 | ) | (90 | ) | (1,454 | ) | (1,592 | ) | ||||||||||
| Net investment income (loss) |
1,720 | (17,115 | ) | (90 | ) | 5,606 | 11,203 | |||||||||||||
| Net realized gain (loss) |
(327 | ) | (133,693 | ) | 3,624 | 15,419 | 18,233 | |||||||||||||
| Capital gain distribution from mutual funds |
— | 1,877,799 | 13,953 | 122,526 | 73,865 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(8,129 | ) | (4,534,404 | ) | (44,977 | ) | (259,677 | ) | (195,359 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(6,736 | ) | (2,807,413 | ) | (27,490 | ) | (116,126 | ) | (92,058 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
3,870 | 251,756 | 1,687 | 30,469 | 60,803 | |||||||||||||||
| Payments for contract benefits or terminations |
— | (176,849 | ) | — | (1,025 | ) | (35,269 | ) | ||||||||||||
| Policy loans |
(1 | ) | (67,321 | ) | (2 | ) | (2,344 | ) | (102 | ) | ||||||||||
| Transfers between sub-accounts (including fixed account), net |
25,734 | 25,583 | (34 | ) | (1,932 | ) | (4,501 | ) | ||||||||||||
| Contract maintenance charges |
(4,538 | ) | (351,353 | ) | (8,276 | ) | (49,358 | ) | (70,293 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
25,065 | (318,184 | ) | (6,625 | ) | (24,190 | ) | (49,362 | ) | |||||||||||
| Increase (decrease) in net assets |
18,329 | (3,125,597 | ) | (34,115 | ) | (140,316 | ) | (141,420 | ) | |||||||||||
| Net assets at beginning of period |
51,077 | 10,366,881 | 94,352 | 706,139 | 925,247 | |||||||||||||||
| Net assets at end of period |
$ | 69,406 | $ | 7,241,284 | $ | 60,237 | $ | 565,823 | $ | 783,827 | ||||||||||
| Beginning units |
1,852 | 400,004 | 3,158 | 16,334 | 23,875 | |||||||||||||||
| Units issued |
1,229 | 45,859 | 71 | 964 | 1,878 | |||||||||||||||
| Units redeemed |
(183 | ) | (64,882 | ) | (353 | ) | (1,618 | ) | (3,316 | ) | ||||||||||
| Ending units |
2,898 | 380,981 | 2,876 | 15,680 | 22,437 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
31 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| SAST SA Morgan Stanley International Equities Portfolio Class 1 |
SAST SA PineBridge High- Yield Bond Portfolio Class 1 |
SAST SA Putnam International Growth and Income |
SAST SA Wellington Capital Appreciation Portfolio Class 1 |
SAST SA Wellington Capital Appreciation |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 5,604 | $ | 18,868 | $ | 12,519 | $ | — | $ | — | ||||||||||
| Mortality and expense risk and administrative charges |
(773 | ) | (619 | ) | (1,021 | ) | (8,755 | ) | (2,389 | ) | ||||||||||
| Net investment income (loss) |
4,831 | 18,249 | 11,498 | (8,755 | ) | (2,389 | ) | |||||||||||||
| Net realized gain (loss) |
(2,063 | ) | (1,729 | ) | (3,340 | ) | (152,947 | ) | (175,778 | ) | ||||||||||
| Change in unrealized appreciation (depreciation) of investments |
51,886 | 26,136 | 76,711 | 1,775,672 | 482,909 | |||||||||||||||
| Increase (decrease) in net assets from operations |
54,654 | 42,656 | 84,869 | 1,613,970 | 304,742 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
16,425 | 5,592 | 20,774 | 88,729 | 149,002 | |||||||||||||||
| Payments for contract benefits or terminations |
— | — | (12,130 | ) | (130,477 | ) | (1,747 | ) | ||||||||||||
| Policy loans |
(5,438 | ) | 1,003 | (2,826 | ) | (20,432 | ) | — | ||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(37 | ) | — | (1,032 | ) | (1,519 | ) | (86,957 | ) | |||||||||||
| Contract maintenance charges |
(26,119 | ) | (15,690 | ) | (30,036 | ) | (206,582 | ) | (97,665 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(15,169 | ) | (9,095 | ) | (25,250 | ) | (270,281 | ) | (37,367 | ) | ||||||||||
| Increase (decrease) in net assets |
39,485 | 33,561 | 59,619 | 1,343,689 | 267,375 | |||||||||||||||
| Net assets at beginning of period |
338,669 | 272,846 | 455,336 | 4,188,294 | 797,298 | |||||||||||||||
| Net assets at end of period |
$ | 378,154 | $ | 306,407 | $ | 514,955 | $ | 5,531,983 | $ | 1,064,673 | ||||||||||
| Beginning units |
24,633 | 9,410 | 25,590 | 70,568 | 45,003 | |||||||||||||||
| Units issued |
1,268 | 228 | 1,635 | 2,202 | 8,001 | |||||||||||||||
| Units redeemed |
(2,254 | ) | (520 | ) | (2,951 | ) | (5,761 | ) | (9,979 | ) | ||||||||||
| Ending units |
23,647 | 9,118 | 24,274 | 67,009 | 43,025 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 9,728 | $ | 16,577 | $ | 8,044 | $ | — | $ | — | ||||||||||
| Mortality and expense risk and administrative charges |
(752 | ) | (617 | ) | (975 | ) | (8,622 | ) | (2,065 | ) | ||||||||||
| Net investment income (loss) |
8,976 | 15,960 | 7,069 | (8,622 | ) | (2,065 | ) | |||||||||||||
| Net realized gain (loss) |
5,592 | (3,839 | ) | 1,544 | (61,162 | ) | (20,830 | ) | ||||||||||||
| Capital gain distribution from mutual funds |
36,792 | — | 22,369 | 1,306,395 | 279,535 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(109,937 | ) | (44,668 | ) | (70,600 | ) | (3,648,508 | ) | (635,569 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(58,577 | ) | (32,547 | ) | (39,618 | ) | (2,411,897 | ) | (378,929 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
18,318 | 6,348 | 26,987 | 135,771 | 180,824 | |||||||||||||||
| Payments for contract benefits or terminations |
(5,647 | ) | (8,823 | ) | (20,529 | ) | (82,772 | ) | (2,928 | ) | ||||||||||
| Policy loans |
(20,008 | ) | (435 | ) | (10,141 | ) | (34,675 | ) | 319 | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
7,297 | 542 | (550 | ) | 95,283 | 127,999 | ||||||||||||||
| Contract maintenance charges |
(23,386 | ) | (13,814 | ) | (34,216 | ) | (185,685 | ) | (103,745 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(23,426 | ) | (16,182 | ) | (38,449 | ) | (72,078 | ) | 202,469 | |||||||||||
| Increase (decrease) in net assets |
(82,003 | ) | (48,729 | ) | (78,067 | ) | (2,483,975 | ) | (176,460 | ) | ||||||||||
| Net assets at beginning of period |
420,672 | 321,575 | 533,403 | 6,672,269 | 973,758 | |||||||||||||||
| Net assets at end of period |
$ | 338,669 | $ | 272,846 | $ | 455,336 | $ | 4,188,294 | $ | 797,298 | ||||||||||
| Beginning units |
26,268 | 9,979 | 27,911 | 71,221 | 34,753 | |||||||||||||||
| Units issued |
2,309 | 324 | 2,210 | 4,800 | 17,340 | |||||||||||||||
| Units redeemed |
(3,944 | ) | (893 | ) | (4,531 | ) | (5,453 | ) | (7,090 | ) | ||||||||||
| Ending units |
24,633 | 9,410 | 25,590 | 70,568 | 45,003 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
32 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| SAST SA Wellington Government and Quality Bond Portfolio Class 1 |
SAST SA Wellington Government and Quality Bond Portfolio Class 3 |
VALIC Company I Core Bond Fund |
VALIC Company I Dynamic Allocation Fund |
VALIC Company I Emerging Economies Fund |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 5,730 | $ | 11,279 | $ | 9,322 | $ | 133,729 | $ | 28,707 | ||||||||||
| Mortality and expense risk and administrative charges |
(552 | ) | (1,448 | ) | (1,128 | ) | (20,535 | ) | (1,276 | ) | ||||||||||
| Net investment income (loss) |
5,178 | 9,831 | 8,194 | 113,194 | 27,431 | |||||||||||||||
| Net realized gain (loss) |
(4,839 | ) | (10,766 | ) | (5,803 | ) | (60,847 | ) | (28,348 | ) | ||||||||||
| Capital gain distribution from mutual funds |
— | — | 961 | 492,361 | 53,269 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
11,769 | 26,879 | 22,760 | 469,068 | 3,257 | |||||||||||||||
| Increase (decrease) in net assets from operations |
12,108 | 25,944 | 26,112 | 1,013,776 | 55,609 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
25,881 | 40,629 | 54,009 | 1,131,568 | 42,300 | |||||||||||||||
| Payments for contract benefits or terminations |
(1,537 | ) | (468 | ) | (8,169 | ) | (62,511 | ) | (8,420 | ) | ||||||||||
| Policy loans |
(195 | ) | 1,352 | (76 | ) | (1,083 | ) | — | ||||||||||||
| Transfers between sub-accounts (including fixed account), net |
47 | (5,870 | ) | (508 | ) | 283,954 | (918 | ) | ||||||||||||
| Contract maintenance charges |
(25,479 | ) | (50,038 | ) | (29,080 | ) | (682,725 | ) | (48,166 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(1,283 | ) | (14,395 | ) | 16,176 | 669,203 | (15,204 | ) | ||||||||||||
| Increase (decrease) in net assets |
10,825 | 11,549 | 42,288 | 1,682,979 | 40,405 | |||||||||||||||
| Net assets at beginning of period |
254,990 | 585,682 | 413,257 | 7,412,559 | 478,702 | |||||||||||||||
| Net assets at end of period |
$ | 265,815 | $ | 597,231 | $ | 455,545 | $ | 9,095,538 | $ | 519,107 | ||||||||||
| Beginning units |
14,035 | 60,561 | 37,966 | 574,272 | 48,898 | |||||||||||||||
| Units issued |
1,393 | 6,247 | 6,631 | 105,737 | 6,152 | |||||||||||||||
| Units redeemed |
(1,474 | ) | (7,703 | ) | (4,863 | ) | (56,821 | ) | (7,634 | ) | ||||||||||
| Ending units |
13,954 | 59,105 | 39,734 | 623,188 | 47,416 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 3,498 | $ | 6,099 | $ | 4,860 | $ | 256,908 | $ | 17,275 | ||||||||||
| Mortality and expense risk and administrative charges |
(589 | ) | (1,550 | ) | (1,094 | ) | (19,505 | ) | (1,292 | ) | ||||||||||
| Net investment income (loss) |
2,909 | 4,549 | 3,766 | 237,403 | 15,983 | |||||||||||||||
| Net realized gain (loss) |
(3,991 | ) | (6,757 | ) | (3,646 | ) | (99,937 | ) | (4,385 | ) | ||||||||||
| Capital gain distribution from mutual funds |
4,215 | 9,686 | 4,115 | 805,380 | 62,249 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(43,819 | ) | (103,169 | ) | (67,669 | ) | (2,378,108 | ) | (225,845 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(40,686 | ) | (95,691 | ) | (63,434 | ) | (1,435,262 | ) | (151,998 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
28,540 | 40,033 | 53,558 | 1,145,698 | 48,706 | |||||||||||||||
| Payments for contract benefits or terminations |
(2,952 | ) | — | — | (46,755 | ) | (1,909 | ) | ||||||||||||
| Policy loans |
(5,424 | ) | 2,143 | (1,229 | ) | (14,782 | ) | 447 | ||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(354 | ) | 7,863 | 24,131 | (192,352 | ) | 44,747 | |||||||||||||
| Contract maintenance charges |
(27,530 | ) | (53,784 | ) | (32,794 | ) | (822,360 | ) | (51,266 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(7,720 | ) | (3,745 | ) | 43,666 | 69,449 | 40,725 | |||||||||||||
| Increase (decrease) in net assets |
(48,406 | ) | (99,436 | ) | (19,768 | ) | (1,365,813 | ) | (111,273 | ) | ||||||||||
| Net assets at beginning of period |
303,396 | 685,118 | 433,025 | 8,778,372 | 589,975 | |||||||||||||||
| Net assets at end of period |
$ | 254,990 | $ | 585,682 | $ | 413,257 | $ | 7,412,559 | $ | 478,702 | ||||||||||
| Beginning units |
14,430 | 61,015 | 34,956 | 568,912 | 44,873 | |||||||||||||||
| Units issued |
2,381 | 6,250 | 8,229 | 87,928 | 17,453 | |||||||||||||||
| Units redeemed |
(2,776 | ) | (6,704 | ) | (5,219 | ) | (82,568 | ) | (13,428 | ) | ||||||||||
| Ending units |
14,035 | 60,561 | 37,966 | 574,272 | 48,898 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
33 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| VALIC Company I Government Money Market I Fund |
VALIC Company I International Equities Index Fund |
VALIC Company I International Value Fund |
VALIC Company I Mid Cap Index Fund |
VALIC Company I Mid Cap Value Fund |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | — | $ | 111,118 | $ | 7,578 | $ | 188,772 | $ | 1,716 | ||||||||||
| Mortality and expense risk and administrative charges |
— | (15,648 | ) | (515 | ) | (42,094 | ) | (690 | ) | |||||||||||
| Net investment income (loss) |
— | 95,470 | 7,063 | 146,678 | 1,026 | |||||||||||||||
| Net realized gain (loss) |
— | 93,516 | 1,583 | (8,609 | ) | (2,693 | ) | |||||||||||||
| Capital gain distribution from mutual funds |
— | — | 8,363 | 1,962,001 | 41,569 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
— | 585,896 | 10,151 | 273,372 | (1,075 | ) | ||||||||||||||
| Increase (decrease) in net assets from operations |
— | 774,882 | 27,160 | 2,373,442 | 38,827 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
— | 154,295 | 28,157 | 514,444 | 26,268 | |||||||||||||||
| Payments for contract benefits or terminations |
— | (78,897 | ) | (153 | ) | (409,162 | ) | — | ||||||||||||
| Policy loans |
— | (32,092 | ) | 694 | (6,324 | ) | — | |||||||||||||
| Transfers between sub-accounts (including fixed account), net |
— | (89,157 | ) | (9,291 | ) | 655,375 | 11,430 | |||||||||||||
| Contract maintenance charges |
— | (172,583 | ) | (19,829 | ) | (728,011 | ) | (12,463 | ) | |||||||||||
| Increase (decrease) in net assets from contract transactions |
— | (218,434 | ) | (422 | ) | 26,322 | 25,235 | |||||||||||||
| Increase (decrease) in net assets |
— | 556,448 | 26,738 | 2,399,764 | 64,062 | |||||||||||||||
| Net assets at beginning of period |
— | 4,179,505 | 192,143 | 15,504,083 | 213,136 | |||||||||||||||
| Net assets at end of period |
$ | — | $ | 4,735,953 | $ | 218,881 | $ | 17,903,847 | $ | 277,198 | ||||||||||
| Beginning units |
— | 350,742 | 19,276 | 503,843 | 13,105 | |||||||||||||||
| Units issued |
— | 160,635 | 3,096 | 81,397 | 3,276 | |||||||||||||||
| Units redeemed |
— | (172,583 | ) | (3,126 | ) | (83,336 | ) | (1,810 | ) | |||||||||||
| Ending units |
— | 338,794 | 19,246 | 501,904 | 14,571 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 13,782 | $ | 115,091 | $ | 3,227 | $ | 216,311 | $ | 753 | ||||||||||
| Mortality and expense risk and administrative charges |
(20,474 | ) | (15,384 | ) | (470 | ) | (49,696 | ) | (627 | ) | ||||||||||
| Net investment income (loss) |
(6,692 | ) | 99,707 | 2,757 | 166,615 | 126 | ||||||||||||||
| Net realized gain (loss) |
(3 | ) | 12,563 | 1,513 | 18,653 | (288 | ) | |||||||||||||
| Capital gain distribution from mutual funds |
— | — | — | 1,374,991 | 17,582 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
2 | (796,604 | ) | (24,957 | ) | (4,166,004 | ) | (40,811 | ) | |||||||||||
| Increase (decrease) in net assets from operations |
(6,693 | ) | (684,334 | ) | (20,687 | ) | (2,605,745 | ) | (23,391 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
478,064 | 164,022 | 28,770 | 513,141 | 31,531 | |||||||||||||||
| Payments for contract benefits or terminations |
(62,653 | ) | (38,325 | ) | (29 | ) | (363,468 | ) | (2,056 | ) | ||||||||||
| Policy loans |
(31,896 | ) | 882 | 1,226 | 13,213 | — | ||||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(10,695,090 | ) | 344,633 | 2,644 | (85,779 | ) | (32,958 | ) | ||||||||||||
| Contract maintenance charges |
(799,362 | ) | (170,504 | ) | (20,755 | ) | (718,093 | ) | (14,213 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(11,110,937 | ) | 300,708 | 11,856 | (640,986 | ) | (17,696 | ) | ||||||||||||
| Increase (decrease) in net assets |
(11,117,630 | ) | (383,626 | ) | (8,831 | ) | (3,246,731 | ) | (41,087 | ) | ||||||||||
| Net assets at beginning of period |
11,117,630 | 4,563,131 | 200,974 | 18,750,814 | 254,223 | |||||||||||||||
| Net assets at end of period |
$ | — | $ | 4,179,505 | $ | 192,143 | $ | 15,504,083 | $ | 213,136 | ||||||||||
| Beginning units |
1,109,965 | 324,922 | 17,908 | 529,204 | 14,394 | |||||||||||||||
| Units issued |
594,026 | 192,835 | 4,531 | 171,861 | 3,179 | |||||||||||||||
| Units redeemed |
(1,703,991 | ) | (167,015 | ) | (3,163 | ) | (197,222 | ) | (4,468 | ) | ||||||||||
| Ending units |
— | 350,742 | 19,276 | 503,843 | 13,105 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
34 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| VALIC Company I Nasdaq-100 Index Fund |
VALIC Company I Science & Technology Fund |
VALIC Company I Small Cap Index Fund |
VALIC Company I Stock Index Fund |
VALIC Company I U.S. Socially Responsible Fund |
||||||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 29,119 | $ | — | $ | 111,024 | $ | 318,019 | $ | 2,297 | ||||||||||
| Mortality and expense risk and administrative charges |
(26,361 | ) | (15,913 | ) | (23,292 | ) | (69,402 | ) | (584 | ) | ||||||||||
| Net investment income (loss) |
2,758 | (15,913 | ) | 87,732 | 248,617 | 1,713 | ||||||||||||||
| Net realized gain (loss) |
409,497 | (562,932 | ) | (588,103 | ) | 291,854 | (1,863 | ) | ||||||||||||
| Capital gain distribution from mutual funds |
1,205,983 | 922,123 | 1,703,170 | 1,732,645 | 32,081 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
2,980,486 | 2,153,101 | (5,539 | ) | 3,483,743 | 5,973 | ||||||||||||||
| Increase (decrease) in net assets from operations |
4,598,724 | 2,496,379 | 1,197,260 | 5,756,859 | 37,904 | |||||||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
242,689 | 218,114 | 369,783 | 951,799 | 22,352 | |||||||||||||||
| Payments for contract benefits or terminations |
(353,252 | ) | (216,016 | ) | (255,215 | ) | (701,180 | ) | — | |||||||||||
| Policy loans |
19,708 | 13,615 | (1,416 | ) | (457,433 | ) | (39 | ) | ||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(281,928 | ) | (275,578 | ) | (460,052 | ) | 942,750 | 3,481 | ||||||||||||
| Contract maintenance charges |
(386,768 | ) | (186,585 | ) | (377,483 | ) | (1,549,174 | ) | (13,623 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(759,551 | ) | (446,450 | ) | (724,383 | ) | (813,238 | ) | 12,171 | |||||||||||
| Increase (decrease) in net assets |
3,839,173 | 2,049,929 | 472,877 | 4,943,621 | 50,075 | |||||||||||||||
| Net assets at beginning of period |
8,510,120 | 4,575,303 | 8,625,061 | 23,208,971 | 170,170 | |||||||||||||||
| Net assets at end of period |
$ | 12,349,293 | $ | 6,625,232 | $ | 9,097,938 | $ | 28,152,592 | $ | 220,245 | ||||||||||
| Beginning units |
171,046 | 123,742 | 351,834 | 725,928 | 8,296 | |||||||||||||||
| Units issued |
52,655 | 77,185 | 109,152 | 94,641 | 1,553 | |||||||||||||||
| Units redeemed |
(62,700 | ) | (84,429 | ) | (135,208 | ) | (116,793 | ) | (983 | ) | ||||||||||
| Ending units |
161,001 | 116,498 | 325,778 | 703,776 | 8,866 | |||||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||||||
| From operations: |
||||||||||||||||||||
| Dividends |
$ | 25,512 | $ | — | $ | 72,887 | $ | 318,018 | $ | 1,148 | ||||||||||
| Mortality and expense risk and administrative charges |
(29,203 | ) | (17,518 | ) | (29,751 | ) | (77,912 | ) | (510 | ) | ||||||||||
| Net investment income (loss) |
(3,691 | ) | (17,518 | ) | 43,136 | 240,106 | 638 | |||||||||||||
| Net realized gain (loss) |
1,078,224 | (216,688 | ) | (249,453 | ) | 1,402,104 | 431 | |||||||||||||
| Capital gain distribution from mutual funds |
1,050,305 | 1,471,972 | 999,517 | 2,185,479 | 22,399 | |||||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(6,493,965 | ) | (4,191,949 | ) | (3,130,630 | ) | (9,509,359 | ) | (54,757 | ) | ||||||||||
| Increase (decrease) in net assets from operations |
(4,369,127 | ) | (2,954,183 | ) | (2,337,430 | ) | (5,681,670 | ) | (31,289 | ) | ||||||||||
| From contract transactions: |
||||||||||||||||||||
| Payments received from contract owners |
273,973 | 233,014 | 373,510 | 939,119 | 34,721 | |||||||||||||||
| Payments for contract benefits or terminations |
(146,448 | ) | (356,448 | ) | (171,078 | ) | (306,058 | ) | (4,658 | ) | ||||||||||
| Policy loans |
(2,920 | ) | 91,920 | (5,185 | ) | 4,098 | 282 | |||||||||||||
| Transfers between sub-accounts (including fixed account), net |
(912,068 | ) | 47,565 | 262,382 | (400,648 | ) | (1,175 | ) | ||||||||||||
| Contract maintenance charges |
(370,064 | ) | (185,167 | ) | (411,685 | ) | (1,489,025 | ) | (14,526 | ) | ||||||||||
| Increase (decrease) in net assets from contract transactions |
(1,157,527 | ) | (169,116 | ) | 47,944 | (1,252,514 | ) | 14,644 | ||||||||||||
| Increase (decrease) in net assets |
(5,526,654 | ) | (3,123,299 | ) | (2,289,486 | ) | (6,934,184 | ) | (16,645 | ) | ||||||||||
| Net assets at beginning of period |
14,036,774 | 7,698,602 | 10,914,547 | 30,143,155 | 186,815 | |||||||||||||||
| Net assets at end of period |
$ | 8,510,120 | $ | 4,575,303 | $ | 8,625,061 | $ | 23,208,971 | $ | 170,170 | ||||||||||
| Beginning units |
187,539 | 122,614 | 349,870 | 770,168 | 7,378 | |||||||||||||||
| Units issued |
67,772 | 33,237 | 143,841 | 221,819 | 2,032 | |||||||||||||||
| Units redeemed |
(84,265 | ) | (32,109 | ) | (141,877 | ) | (266,059 | ) | (1,114 | ) | ||||||||||
| Ending units |
171,046 | 123,742 | 351,834 | 725,928 | 8,296 | |||||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
35 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
| VanEck VIP Emerging Markets Fund Initial Class |
VanEck VIP Global Resources Fund Initial Class |
Vanguard VIF High Yield Bond Portfolio |
Vanguard VIF Real Estate Index Portfolio |
|||||||||||||
| For the Year Ended December 31, 2023 |
||||||||||||||||
| From operations: |
||||||||||||||||
| Dividends |
$ | 4,906 | $ | 7,675 | $ | 267,751 | $ | 291,020 | ||||||||
| Mortality and expense risk and administrative charges |
(667 | ) | (1,356 | ) | (16,629 | ) | (37,269 | ) | ||||||||
| Net investment income (loss) |
4,239 | 6,319 | 251,122 | 253,751 | ||||||||||||
| Net realized gain (loss) |
(14,142 | ) | 8,189 | (119,986 | ) | (335,372 | ) | |||||||||
| Capital gain distribution from mutual funds |
— | — | — | 549,028 | ||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
20,062 | (26,340 | ) | 457,993 | 900,674 | |||||||||||
| Increase (decrease) in net assets from operations |
10,159 | (11,832 | ) | 589,129 | 1,368,081 | |||||||||||
| From contract transactions: |
||||||||||||||||
| Payments received from contract owners |
17,805 | 15,705 | 264,448 | 497,471 | ||||||||||||
| Payments for contract benefits or terminations |
(1,273 | ) | — | (174,734 | ) | (491,677 | ) | |||||||||
| Policy loans |
556 | 906 | 10,212 | (35,942 | ) | |||||||||||
| Transfers between sub-accounts (including fixed account), net |
(14,428 | ) | (2,771 | ) | (133,998 | ) | 545,821 | |||||||||
| Contract maintenance charges |
(17,461 | ) | (22,888 | ) | (354,997 | ) | (622,302 | ) | ||||||||
| Increase (decrease) in net assets from contract transactions |
(14,801 | ) | (9,048 | ) | (389,069 | ) | (106,629 | ) | ||||||||
| Increase (decrease) in net assets |
(4,642 | ) | (20,880 | ) | 200,060 | 1,261,452 | ||||||||||
| Net assets at beginning of period |
131,322 | 285,719 | 5,505,556 | 11,891,488 | ||||||||||||
| Net assets at end of period |
$ | 126,680 | $ | 264,839 | $ | 5,705,616 | $ | 13,152,940 | ||||||||
| Beginning units |
4,639 | 7,870 | 275,240 | 544,691 | ||||||||||||
| Units issued |
684 | 489 | 40,450 | 124,304 | ||||||||||||
| Units redeemed |
(1,226 | ) | (755 | ) | (60,714 | ) | (130,335 | ) | ||||||||
| Ending units |
4,097 | 7,604 | 254,976 | 538,660 | ||||||||||||
| For the Year Ended December 31, 2022 |
||||||||||||||||
| From operations: |
||||||||||||||||
| Dividends |
$ | 381 | $ | 4,855 | $ | 273,987 | $ | 265,375 | ||||||||
| Mortality and expense risk and administrative charges |
(675 | ) | (1,424 | ) | (18,305 | ) | (50,424 | ) | ||||||||
| Net investment income (loss) |
(294 | ) | 3,431 | 255,682 | 214,951 | |||||||||||
| Net realized gain (loss) |
(2,952 | ) | (4,133 | ) | (67,137 | ) | (194,032 | ) | ||||||||
| Capital gain distribution from mutual funds |
26,434 | — | — | 599,400 | ||||||||||||
| Change in unrealized appreciation (depreciation) of investments |
(65,607 | ) | 15,893 | (764,269 | ) | (5,095,956 | ) | |||||||||
| Increase (decrease) in net assets from operations |
(42,419 | ) | 15,191 | (575,724 | ) | (4,475,637 | ) | |||||||||
| From contract transactions: |
||||||||||||||||
| Payments received from contract owners |
15,461 | 13,839 | 314,608 | 537,053 | ||||||||||||
| Payments for contract benefits or terminations |
(519 | ) | (31,359 | ) | (83,907 | ) | (531,235 | ) | ||||||||
| Policy loans |
1,036 | (455 | ) | (16,974 | ) | 7,486 | ||||||||||
| Transfers between sub-accounts (including fixed account), net |
3,990 | 73,329 | 185,551 | (256,704 | ) | |||||||||||
| Contract maintenance charges |
(15,979 | ) | (21,475 | ) | (369,056 | ) | (625,786 | ) | ||||||||
| Increase (decrease) in net assets from contract transactions |
3,989 | 33,879 | 30,222 | (869,186 | ) | |||||||||||
| Increase (decrease) in net assets |
(38,430 | ) | 49,070 | (545,502 | ) | (5,344,823 | ) | |||||||||
| Net assets at beginning of period |
169,752 | 236,649 | 6,051,058 | 17,236,311 | ||||||||||||
| Net assets at end of period |
$ | 131,322 | $ | 285,719 | $ | 5,505,556 | $ | 11,891,488 | ||||||||
| Beginning units |
4,513 | 7,030 | 272,250 | 576,958 | ||||||||||||
| Units issued |
712 | 2,224 | 77,759 | 214,730 | ||||||||||||
| Units redeemed |
(586 | ) | (1,384 | ) | (74,769 | ) | (246,997 | ) | ||||||||
| Ending units |
4,639 | 7,870 | 275,240 | 544,691 | ||||||||||||
The accompanying Notes to Financial Statements are an integral part of this statement.
|
36 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
| 1. | Organization |
Separate Account VL-R (“the Separate Account”) is a segregated investment account established by American General Life Insurance Company (”AGL”) to receive and invest premium payments from variable universal life insurance policies 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 products that are no longer available for sale:
| AG Corporate Investor | Platinum Choice VUL 2(a) | |
| AG Income Advantage VUL | Platinum Investor FlexDirector | |
| AG Legacy Plus | Platinum Investor I | |
| Corporate America | Platinum Investor II | |
| Corporate Investor Select | Platinum Investor III | |
| Equibuilder | Platinum Investor IV | |
| Equibuilder II | Platinum Investor PLUS | |
| Equibuilder III | Platinum Investor Survivor | |
| Executive Advantage | Platinum Investor Survivor II | |
| Gallery Life | Platinum Investor VIP | |
| Gemstone Life | Polaris Life | |
| Flexible Premium VUL (Group) | Polaris Survivorship Life | |
| Flexible Premium Variable Universal Life Policy | Protection Advantage Select | |
| Income Advantage Select |
| (a) | This product was introduced on November 6, 2014. The name was changed from AG Platinum Choice VUL to AG Platinum Choice VUL 2 on July 3, 2017. The product name was further updated to Platinum Choice VUL 2 on October 7, 2019. |
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, all periods reflect a full twelve months, except as noted below.
| AB Variable Products Series Fund, Inc. (AB VPS) | ||
| AB VPS Balanced Hedged Allocation Portfolio Class A |
AB VPS Small Cap Growth Portfolio Class A | |
| AB VPS Intermediate Bond Portfolio Class A(k) |
AB VPS Sustainable Global Thematic Growth Portfolio Class A | |
| AB VPS Large Cap Growth Portfolio Class A |
AB VPS Sustainable International Thematic Portfolio Class A(e) | |
| AB VPS Relative Value Portfolio Class A(c) |
||
| The Alger Portfolios (Alger) | ||
| Alger Capital Appreciation Portfolio Class I-2 |
Alger Mid Cap Growth Portfolio Class I-2 | |
| American Century Variable Portfolios, Inc. (American Century VP) | ||
| American Century VP Capital Appreciation Fund Class I |
American Century VP International Fund Class I(e) | |
| American Century VP Disciplined Core Value Fund Class I |
American Century VP Value Fund Class I | |
| American Funds Insurance Series (American Funds IS) | ||
| American Funds IS American High-Income Trust Class 2 |
American Funds IS Growth Fund Class 2 | |
| American Funds IS Asset Allocation Fund Class 2 |
American Funds IS Growth-Income Fund Class 2 | |
| American Funds IS Global Growth Fund Class 2 |
American Funds IS International Fund Class 2 | |
|
37 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| BlackRock Variable Series Funds, Inc. (BlackRock) |
||
| BlackRock Advantage SMID Cap V.I. Fund Class I(e) |
BlackRock Capital Appreciation V.I. Fund Class I(e) | |
| BlackRock Basic Value V.I. Fund Class I(e) |
||
| BNY Mellon Investment Portfolios (BNY Mellon IP) |
||
| BNY Mellon IP MidCap Stock Portfolio Initial Shares |
||
| BNY Mellon Stock Index Fund Inc. |
||
| BNY Mellon Stock Index Fund, Inc. Initial Shares |
||
| BNY Mellon Variable Investment Fund (BNY Mellon VIF) |
||
| BNY Mellon VIF Opportunistic Small Cap Portfolio Initial Shares |
||
| EQ Advisors Trust SM (EQ/) |
||
| EQ Advisors Multimanager Aggressive Equity Portfolio Class IA |
EQ/International Equity Index Portfolio Class IA | |
| EQ/Common Stock Index Portfolio Class IA |
EQ/Moderate Allocation Portfolio Class IA(n) | |
| EQ/Core Plus Bond Portfolio Class IA(m) |
EQ/Money Market Portfolio Class IA | |
| Fidelity Variable Insurance Products (Fidelity VIP) |
||
| Fidelity VIP Asset Manager Growth Portfolio Initial Class |
Fidelity VIP Freedom 2030 Portfolio Service Class 2 | |
| Fidelity VIP Asset Manager Portfolio Initial Class |
Fidelity VIP Government Money Market Portfolio Initial Class | |
| Fidelity VIP Asset Manager Portfolio Service Class 2 |
Fidelity VIP Government Money Market Portfolio Service Class 2 | |
| Fidelity VIP Balanced Portfolio Initial Class(e) |
Fidelity VIP Growth Portfolio Initial Class | |
| Fidelity VIP Contrafund Portfolio Initial Class |
Fidelity VIP Growth Portfolio Service Class 2 | |
| Fidelity VIP Contrafund Portfolio Service Class 2 |
Fidelity VIP High Income Portfolio Initial Class | |
| Fidelity VIP Equity-Income Portfolio Initial Class |
Fidelity VIP Index 500 Portfolio Initial Class | |
| Fidelity VIP Equity-Income Portfolio Service Class 2 |
Fidelity VIP Investment Grade Bond Portfolio Initial Class | |
| Fidelity VIP Freedom 2020 Portfolio Service Class 2 |
Fidelity VIP Mid Cap Portfolio Service Class 2 | |
| Fidelity VIP Freedom 2025 Portfolio Service Class 2 |
Fidelity VIP Overseas Portfolio Initial Class | |
| Franklin Templeton Variable Insurance Products Trust (FTVIP) |
||
| FTVIP Franklin Mutual Shares VIP Fund Class 2 |
FTVIP Templeton Developing Markets VIP Fund Class 2(e) | |
| FTVIP Franklin Small Cap Value VIP Fund Class 2 |
FTVIP Templeton Foreign VIP Fund Class 2 | |
| FTVIP Franklin Small-Mid Cap Growth VIP Fund Class 2 |
FTVIP Templeton Growth VIP Fund Class 2(e) | |
| FTVIP Franklin U.S. Government Securities VIP Fund Class 2 |
||
| Goldman Sachs Variable Insurance Trust (Goldman Sachs VIT) |
||
| Goldman Sachs VIT International Equity Insights Fund Institutional Shares(e) |
Goldman Sachs VIT U.S. Equity Insights Fund Institutional Shares(e) | |
| Goldman Sachs VIT Strategic Growth Fund Institutional Shares |
||
| Invesco Variable Insurance Funds (Invesco V.I.) |
||
| Invesco V.I. American Franchise Fund Series I |
Invesco V.I. Global Real Estate Fund Series I | |
| Invesco V.I. American Value Fund Series I(e) |
Invesco V.I. Global Strategic Income Fund Series I | |
| Invesco V.I. Conservative Balanced Fund Series I |
Invesco V.I. Government Securities Fund Series I | |
| Invesco V.I. Core Equity Fund Series I |
Invesco V.I. Growth and Income Fund Series I | |
| Invesco V.I. EQV International Equity Fund Series 1 |
Invesco V.I. High Yield Fund Series I | |
| Invesco V.I. Global Fund Series I |
Invesco V.I. Main Street Fund Series I | |
| Janus Aspen Series (Janus) |
||
| Janus Henderson Enterprise Portfolio Service Shares |
Janus Henderson Global Research Portfolio Service Shares | |
| Janus Henderson Forty Portfolio Service Shares |
Janus Henderson Overseas Portfolio Service Shares | |
| Lincoln Variable Insurance Products Trust (LVIP) |
||
| LVIP JPMorgan Core Bond Fund Standard Class(d) |
LVIP JPMorgan Small Cap Core Fund Standard Class(g) | |
| LVIP JPMorgan Mid Cap Value Fund Standard Class(f) |
LVIP JPMorgan U.S. Equity Fund Standard Class(h) | |
|
38 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| MFS Variable Insurance Trust (MFS VIT) | ||
| MFS VIT Growth Series Initial Class |
MFS VIT Research Series Initial Class | |
| MFS VIT Investors Trust Series Initial Class |
MFS VIT Total Return Series Initial Class | |
| MFS VIT New Discovery Series Initial Class |
MFS VIT Utilities Series Initial Class | |
| MFS Variable Insurance Trust II (MFS VIT II) | ||
| MFS VIT II Core Equity Portfolio Initial Class |
||
| Morgan Stanley Variable Insurance Fund, Inc. (Morgan Stanley VIF) | ||
| Morgan Stanley VIF Emerging Markets Equity Portfolio Class I(e) |
Morgan Stanley VIF Growth Portfolio Class I | |
| Neuberger Berman Advisers Management Trust (Neuberger Berman AMT) | ||
| Neuberger Berman AMT Mid Cap Growth Portfolio Class I |
Neuberger Berman AMT Sustainable Equity Portfolio Class I | |
| Neuberger Berman AMT Short Duration Bond Portfolio Class I |
||
| PIMCO Variable Insurance Trust (PIMCO) | ||
| PIMCO CommodityRealReturn Strategy Portfolio Administrative Class |
PIMCO Real Return Portfolio Administrative Class | |
| PIMCO Global Bond Opportunities Portfolio (Unhedged) Administrative Class |
PIMCO Short-Term Portfolio Administrative Class | |
| PIMCO High Yield Portfolio Administrative Class(e) |
PIMCO Total Return Portfolio Administrative Class | |
| PIMCO Long-Term U.S. Government Portfolio Administrative Class(e) |
||
| Pioneer Variable Contracts Trust (Pioneer) | ||
| Pioneer Fund VCT Portfolio Class I |
Pioneer Select Mid Cap Growth VCT Portfolio Class I | |
| Pioneer Mid Cap Value VCT Portfolio Class I |
||
| Putnam Variable Trust (Putnam VT) | ||
| Putnam VT Diversified Income Fund Class IB |
Putnam VT Large Cap Value Fund Class IB | |
| Putnam VT International Value Fund Class IB |
Putnam VT Small Cap Value Fund Class IB | |
| Putnam VT Large Cap Growth Fund Class IB(i) |
Putnam VT Sustainable Leaders Fund Class IB | |
| Seasons Series Trust (SST) | ||
| SST SA Multi-Managed Mid Cap Value Portfolio Class 3 |
||
| SunAmerica Series Trust (SAST)(a) | ||
| SAST SA AB Growth Portfolio Class 1 |
SAST SA JPMorgan Large Cap Core Portfolio Class 1(j) | |
| SAST SA DFA Ultra Short Bond Portfolio Class 1 |
SAST SA JPMorgan MFS Core Bond Portfolio Class 1 | |
| SAST SA Federated Hermes Corporate Bond Portfolio Class 1 |
SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1 | |
| SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1 |
SAST SA MFS Blue Chip Growth Portfolio Class 1 | |
| SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1 |
SAST SA MFS Massachusetts Investors Trust Portfolio Class 1 | |
| SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1 |
SAST SA MFS Total Return Portfolio Class 1 | |
| SAST SA Goldman Sachs Global Bond Portfolio Class 1 |
SAST SA Morgan Stanley International Equities Portfolio Class 1 | |
| SAST SA Invesco Growth Opportunities Portfolio Class 1 |
SAST SA PineBridge High-Yield Bond Portfolio Class 1 | |
| SAST SA Janus Focused Growth Portfolio Class 1 |
SAST SA Putnam International Growth and Income Portfolio Class 1 | |
| SAST SA JPMorgan Diversified Balanced Portfolio Class 1 |
SAST SA Wellington Capital Appreciation Portfolio Class 1 | |
| SAST SA JPMorgan Emerging Markets Portfolio Class 1 |
SAST SA Wellington Capital Appreciation Portfolio Class 3 | |
| SAST SA JPMorgan Equity-Income Portfolio Class 1 |
SAST SA Wellington Government and Quality Bond Portfolio Class 1 | |
| SAST SA JPMorgan Global Equities Portfolio Class 1 |
SAST SA Wellington Government and Quality Bond Portfolio Class 3 | |
| VALIC Company I(b) | ||
| VALIC Company I Core Bond Fund |
VALIC Company I Mid Cap Value Fund | |
| VALIC Company I Dynamic Allocation Fund |
VALIC Company I Nasdaq-100 Index Fund | |
| VALIC Company I Emerging Economies Fund |
VALIC Company I Science & Technology Fund | |
| VALIC Company I Government Money Market I Fund(I) |
VALIC Company I Small Cap Index Fund | |
| VALIC Company I International Equities Index Fund |
VALIC Company I Stock Index Fund | |
| VALIC Company I International Value Fund |
VALIC Company I U.S. Socially Responsible Fund | |
| VALIC Company I Mid Cap Index Fund |
||
|
39 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| VanEck VIP Trust (VanEck VIP) | ||
| VanEck VIP Emerging Markets Fund Initial Class | VanEck VIP Global Resources Fund Initial Class | |
| Vanguard Variable Insurance Fund (Vanguard VIF) | ||
| Vanguard VIF High Yield Bond Portfolio | Vanguard VIF Total Bond Market Index Portfolio(e) | |
| Vanguard VIF Real Estate Index Portfolio | Vanguard VIF Total Stock Market Index Portfolio(e) | |
| (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) | 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, Seasons Series Trust and SunAmerica Series Trust. 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. |
| (c) | Formerly AB VPS Growth and Income Portfolio. |
| (d) | Formerly JPMorgan Insurance Trust Core Bond Portfolio. |
| (e) | Sub-account had no activity during the current or prior year and no assets or liabilities as of December 31, 2023. |
| (f) | Formerly JPMorgan Insurance Trust Mid Cap Value Portfolio. |
| (g) | Formerly JPMorgan Insurance Trust Small Cap Core Portfolio. |
| (h) | Formerly JPMorgan Insurance Trust U.S. Equity Portfolio. |
| (i) | Formerly Putnam VT Growth Opportunities Fund. |
| (j) | Formerly SAST SA Invesco Main Street Large Cap Core Portfolio. |
| (k) | Statements of Operations and Changes in Net Assets for the period January 1, 2022 to March 3, 2022 (cessation of operations). |
| (l) | Statements of Operations and Changes in Net Assets for the period January 1, 2022 to July 22, 2022 (cessation of operations). |
| (m) | Formerly EQ Premier VIP EQ/Core Plus Bond Portfolio. |
| (n) | Formerly EQ Premier VIP EQ/Moderate Allocation 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 may conduct. 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.
| 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.
Policy Loans: When a policy loan is made, the loan amount is transferred to AGL from the contract owner’s selected investment, and held as collateral. Interest on this collateral amount is credited to the policy. Loan repayments are invested in the contract owner’s selected investment, after they are first used to repay all loans taken from the declared fixed interest account option.
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.
|
40 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Internal Rollovers: A contract owner with an eligible Company life insurance policy may elect to replace their existing policy with another insurance policy offered by AGL. Internal rollovers are included on the payments for contract benefits or terminations line in the Statements of Operations and Changes in Net Assets under contract transactions.
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. |
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 administrative 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 administrative charge reimburses AGL for any administrative expenses incurred under the contract. This includes the expenses for administration and marketing. 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. Expense charges for each product are as follows:
|
41 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| Products | Mortality and Expense Risk Maximum Annual Rate and Administrative Charges Maximum Annual Rate |
First Reduction in Mortality and Expense Risk and Administrative Charges Rate(a) |
Second Reduction in Mortality and Expense Risk and Administrative Charges Rate(b) | |||
| AG Corporate Investor |
0.65% | 0.25% | 0.25% | |||
| AG Income Advantage VUL |
0.70% | 0.35% | 0.20% | |||
| AG Legacy Plus |
0.90% | 0.25% | 0.25% | |||
| Platinum Choice VUL 2 |
0.70% | 0.35% | 0.20% | |||
| Corporate America |
0.35% | 0.10% | 0.10% | |||
| Corporate America (reduced surrender charge) |
0.65% | 0.25% | 0.25% | |||
| Corporate Investor Select |
0.65% | 0.25% | 0.25% | |||
| Income Advantage Select |
0.70% | 0.35% | 0.20% | |||
| Platinum Investor FlexDirector |
0.70% | 0.25% | 0.35% | |||
| Platinum Investor I |
0.75% | 0.25% | 0.25% | |||
| Platinum Investor II |
0.75% | 0.25% | 0.25% | |||
| Platinum Investor III |
0.70% | 0.25% | 0.35% | |||
| Platinum Investor IV |
0.70% | 0.35% | 0.25% | |||
| Platinum Investor PLUS |
0.70% | 0.25% | 0.35% | |||
| Platinum Investor Survivor |
0.40% | 0.20% | 0.10%(c) | |||
| Platinum Investor Survivor II |
0.75% | 0.25%(d) | 0.35%(c) | |||
| Platinum Investor VIP |
0.70% | 0.35% | 0.20% | |||
| Protection Advantage Select |
0.70% | 0.35% | 0.20% | |||
| (a) | After 10th policy year. |
| (b) | After 20th policy year. |
| (c) | After 30th policy year. |
| (d) | After 15th policy year. |
Expense charges for the following products are as follows:
| Products | Separate Account Current Annual Rate |
Separate Account Maximum Annual Rate | ||
| Executive Advantage® |
0.10% | 1.00% | ||
| Gallery Life |
0.50% | 0.90% | ||
| Gemstone Life |
0.10% | 0.90% | ||
| Polaris Life |
0.25% | 0.90% | ||
| Polaris Survivorship Life |
0.10% | 0.90% | ||
| Flexible Premium VUL (Group) |
0.50% | 0.90% | ||
| Flexible Premium Variable Universal Life Policy |
0.50% | 0.90% | ||
The separate account annual charge for Equibuilder, Equibuilder II and Equibuilder III is calculated as a percentage of the net asset value and deducted at an annual rate of 0.75 percent.
Monthly Administrative Charge: AGL makes a monthly charge against each policy account for the administrative expenses. These charges are included as part of the contract maintenance charges line in the Statements of Operations and Changes in Net Assets.
The maximum monthly administrative expense charge is $15. AGL may deduct an additional monthly expense charge for expenses associated with acquisition, administrative and underwriting of the policy. The monthly expense charge is applied against each $1,000 of base coverage. This charge varies according to the ages, gender and the premium classes of both of the contingent insurers, as well as the amount of coverage. There may be an additional monthly administrative charge during the first policy year and the 12 months after an increase in face amount per insured. This charge will not exceed $25 a month per insured.
For Equibuilder II and Equibuilder II AGL currently charges $9 per month guaranteed to be no more than $12 per month.
|
42 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For Equibuilder AGL currently charges $6 per month plus an additional charge of $24 per month for each of the first 12 months a policy is in effect.
Contract Maintenance Charge: Monthly contract maintenance charges are paid to AGL for the administrative services provided under the current policies. AGL may deduct an additional monthly expense charge for expenses associated with acquisition, administrative and underwriting of your policy. The monthly expense charge is applied only against each $1,000 of coverage (if the policy offers both base and supplement coverage, then only each $1,000 of base coverage). This charge varies according to the ages, gender and the premium class of the insured, as well as the amount of coverage. These charges are included as part of the contract maintenance charges line in the Statements of Operations and Changes in Net Assets.
AGL may charge a maximum fee of $12 for the monthly contract maintenance charge.
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.
The amount of the withdrawal charge depends on the age and other insurance characteristics of the insured person. For partial withdrawals, AGL may charge a maximum transaction fee per partial withdrawal equal to the lesser of 2 percent of the amount withdrawn or $25. Currently, a $10 transaction fee per policy is charged for each partial withdrawal. In addition, for Equibuilder AGL charges for a partial withdrawal of net cash surrender value (currently $10 or 2 percent of the amount withdrawn, whichever is less).
For Equibuilder I, Equibuilder II and Equibuilder III, during the first ten years a policy is in effect, a withdrawal charge may be assessed by AGL. The maximum withdrawal charge is equal to 50 percent of one “target” premium. This maximum will not vary with premiums paid or when premiums are paid. At the end of the sixth policy year, and at the end of each of the four succeeding policy years, the maximum withdrawal charge will decrease by 20 percent. The current withdrawal charge for Equibuilder, EquiBuilder II and EquiBuilder III will equal 30 percent, 30 percent and 25 percent, respectively, of premium payments made during the first policy year up to one “target” premium and 9 percent of any additional premiums paid during the first ten policy years.
Policy Loan Interest Charge: A loan may be requested against a policy while the policy has a net cash surrender value. The daily interest charge on the loan is paid to AGL for the expenses of administering and providing policy loans. The interest charge is collected through any loan repayment from the policyholder.
Cost of Insurance Charge: Since determination of both the insurance rate and AGL’s net amount at risk depends upon several factors, the cost of insurance deduction may vary from month to month. Policy accumulation value, specified amount of insurance and certain characteristics of the insured person are among the variables included in the calculation for the monthly cost of insurance deduction. The cost of insurance charge is included as part of the contract maintenance charges line of the Statements of Operations and Changes in Net Assets.
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 is assessed on each transfer in excess of 12 transfers during the policy year. For Equibuilder, Equibuilder II and Equibuilder III a transfer fee of $25 is assessed on each transfer in excess of four transfers during the policy year.
Premium Tax Charge: Certain states charge taxes on purchase payments up to a maximum of 3.5 percent. AGL deducts from each premium payment a charge to cover costs associated with the issuance of the policy, administrative services AGL performs and a premium tax that is applicable to AGL in the state or other jurisdiction of the policy owner. Premium tax charges are included as part of the contract maintenance charges line in the Statements of Operations and Changes in Net Assets.
A summary of premium tax charges follows:
| Products | Premium Tax Charge | |
| AG Corporate Investor* |
4.00% up to the “target premium” and 5.00% on any premium amounts in excess of the “target premium” for policy years 1-3. 9.00% up to the “target premium” and 5.00% on any premium amounts in excess of the “target premium” for policy years 4-7. 5.00% of all premium payments in policy years 8 and thereafter. | |
| AG Income Advantage VUL |
5.00% of after-tax premium payment | |
| Platinum Choice VUL 2 |
9.00% of after-tax premium payment | |
|
43 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| Products | Premium Tax Charge | |
| Corporate America* |
9.00% up to the “target premium” and 5.00% on any premium amounts in excess of the “target premium” for policy years 1-7. 5.00% of all premium payments in policy years 8 and thereafter. | |
| Corporate Investor Select* |
4.00% up to the “target premium” and 5.00% on any premium amounts in excess of the “target premium” for policy years 1-3. 9.00% up to the “target premium” and 5.00% on any premium amounts in excess of the “target premium” for policy years 4-7. 5.00% of all premium payments in policy years 8 and thereafter. | |
| Income Advantage Select |
3.50% of each premium payment | |
| Platinum Investor FlexDirector |
3.50% of each premium payment | |
| Platinum Investor I |
3.50% of each premium payment | |
| Platinum Investor II |
3.50% of each premium payment | |
| Platinum Investor III |
3.50% of each premium payment | |
| Platinum Investor IV |
3.50% of each premium payment | |
| Platinum Investor PLUS |
3.50% of each premium payment | |
| Platinum Investor Survivor |
3.50% of each premium payment | |
| Platinum Investor Survivor II |
3.50% of each premium payment | |
| Platinum Investor VIP |
3.50% of each premium payment | |
| Protection Advantage Select |
3.50% of each premium payment | |
| Executive Advantage® |
The maximum charge is 9% of each premium payment. | |
| Gallery Life |
5% of each premium payment plus the state specific premium taxes. | |
| Gemstone Life * |
5% of each premium payment up to the target premium amount plus 2% of any premium paid in excess of the target premium amount for policy years 1-10. 3% of each premium payment up to the target premium amount plus 2% of any premium paid in excess of the target premium amount beginning in policy year 11. The maximum charge is 8% of each premium payment. | |
| Polaris Life |
Currently 5% for the first 10 policy years and 3% thereafter. The maximum charge allowed is 8% of each premium payment. | |
| Polaris Survivorship Life |
Currently 5% for the first 10 policy years and 3% thereafter. The maximum charge allowed is 8% of each premium payment. | |
| Flexible Premium VUL (Group) |
5% of each premium payment plus the state specific premium taxes. | |
| Flexible Premium Variable Universal Life Policy |
5% of each premium payment plus the state specific premium taxes. | |
| * | The target premium is an amount of premium that is approximately equal to the seven-pay premium, which is the maximum amount of premium that may be paid without the policy becoming a modified endowment contract. |
Optional Rider Charge: Monthly charges are deducted if the contract owner selects additional benefit riders. The charges for any rider selected will vary by policy within a range based on either the personal characteristics of the insured person or the specific coverage chosen under the rider. The rider charges are included as part of contract maintenance charges line in the Statements of Operations and Changes in Net Assets.
Face Amount Increase Charge: AGL charges for an increase in the face amount of insurance. These charges are included as part of the contract maintenance charges line in the Statements of Operations and Changes in Net Assets.
For Equibuilder, the face amount increase charge is $1.50 per $1,000 increase in the face amount of insurance up to a maximum charge of $300.
Guaranteed Minimum Withdrawal Benefit (GMWB) Charge: Daily charges for the GMWB rider are assessed through the daily unit value calculation on all policies that have elected this option. These charges are included as part of the contract maintenance charges line in the Statements of Operations and Changes in Net Assets.
The annualized GMWB charge is 0.75 percent, which may be increased to a maximum of 1.50 percent.
|
44 |
SEPARATE ACCOUNT VL-R
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 | ||||||||||
| AB VPS Balanced Hedged Allocation Portfolio Class A |
$ | 27,169 | $ | 26,943 | ||||||||
| AB VPS Large Cap Growth Portfolio Class A |
2,370,594 | 367,703 | ||||||||||
| AB VPS Relative Value Portfolio Class A |
227,057 | 201,758 | ||||||||||
| AB VPS Small Cap Growth Portfolio Class A |
26,131 | 71,065 | ||||||||||
| AB VPS Sustainable Global Thematic Growth Portfolio Class A |
136,126 | 115,235 | ||||||||||
| Alger Capital Appreciation Portfolio Class I-2 |
5,771,994 | 6,545,986 | ||||||||||
| Alger Mid Cap Growth Portfolio Class I-2 |
1,622,335 | 1,740,018 | ||||||||||
| American Century VP Capital Appreciation Fund Class I |
7,730 | 15,346 | ||||||||||
| American Century VP Disciplined Core Value Fund Class I |
8,396 | 4,882 | ||||||||||
| American Century VP Value Fund Class I |
3,967,854 | 3,276,882 | ||||||||||
| American Funds IS American High-Income Trust Class 2 |
217,551 | 78,766 | ||||||||||
| American Funds IS Asset Allocation Fund Class 2 |
1,023,601 | 465,551 | ||||||||||
| American Funds IS Global Growth Fund Class 2 |
418,511 | 253,562 | ||||||||||
| American Funds IS Growth Fund Class 2 |
1,502,732 | 1,179,336 | ||||||||||
| American Funds IS Growth-Income Fund Class 2 |
918,283 | 439,477 | ||||||||||
| American Funds IS International Fund Class 2 |
228,539 | 148,368 | ||||||||||
| BNY Mellon IP MidCap Stock Portfolio Initial Shares |
1,321,084 | 1,486,394 | ||||||||||
| BNY Mellon Stock Index Fund, Inc. Initial Shares |
380,872 | 267,873 | ||||||||||
| BNY Mellon VIF Opportunistic Small Cap Portfolio Initial Shares |
2,208,057 | 1,866,406 | ||||||||||
| EQ Advisors Multimanager Aggressive Equity Portfolio Class IA |
23,363 | 84,633 | ||||||||||
| EQ/Common Stock Index Portfolio Class IA |
122,316 | 222,482 | ||||||||||
| EQ/Core Plus Bond Portfolio Class IA |
2,089 | 3,584 | ||||||||||
| EQ/International Equity Index Portfolio Class IA |
8,036 | 14,519 | ||||||||||
| EQ/Moderate Allocation Portfolio Class IA |
363,563 | 418,145 | ||||||||||
| EQ/Money Market Portfolio Class IA |
2,248 | 4,605 | ||||||||||
| Fidelity VIP Asset Manager Growth Portfolio Initial Class |
161,758 | 570,040 | ||||||||||
| Fidelity VIP Asset Manager Portfolio Initial Class |
9,206,428 | 9,731,056 | ||||||||||
| Fidelity VIP Asset Manager Portfolio Service Class 2 |
955,524 | 991,594 | ||||||||||
| Fidelity VIP Contrafund Portfolio Initial Class |
2,068,427 | 4,302,449 | ||||||||||
| Fidelity VIP Contrafund Portfolio Service Class 2 |
9,148,257 | 10,038,222 | ||||||||||
| Fidelity VIP Equity-Income Portfolio Initial Class |
1,708,931 | 2,725,639 | ||||||||||
| Fidelity VIP Equity-Income Portfolio Service Class 2 |
4,172,659 | 4,200,799 | ||||||||||
| Fidelity VIP Freedom 2020 Portfolio Service Class 2 |
24,401 | 27,350 | ||||||||||
| Fidelity VIP Freedom 2025 Portfolio Service Class 2 |
102,458 | 364,090 | ||||||||||
| Fidelity VIP Freedom 2030 Portfolio Service Class 2 |
181,991 | 242,586 | ||||||||||
| Fidelity VIP Government Money Market Portfolio Initial Class |
10,336,392 | 10,425,740 | ||||||||||
| Fidelity VIP Government Money Market Portfolio Service Class 2 |
486,215 | 870,779 | ||||||||||
| Fidelity VIP Growth Portfolio Initial Class |
4,434,404 | 6,159,070 | ||||||||||
| Fidelity VIP Growth Portfolio Service Class 2 |
10,259,830 | 9,280,170 | ||||||||||
| Fidelity VIP High Income Portfolio Initial Class |
143,360 | 203,399 | ||||||||||
| Fidelity VIP Index 500 Portfolio Initial Class |
1,211,684 | 3,349,529 | ||||||||||
| Fidelity VIP Investment Grade Bond Portfolio Initial Class |
117,274 | 241,761 | ||||||||||
| Fidelity VIP Mid Cap Portfolio Service Class 2 |
1,684,059 | 2,012,856 | ||||||||||
| Fidelity VIP Overseas Portfolio Initial Class |
161,537 | 561,894 | ||||||||||
| FTVIP Franklin Mutual Shares VIP Fund Class 2 |
2,358,733 | 1,859,554 | ||||||||||
| FTVIP Franklin Small Cap Value VIP Fund Class 2 |
2,982,443 | 2,227,398 | ||||||||||
| FTVIP Franklin Small-Mid Cap Growth VIP Fund Class 2 |
1,461 | 3,381 | ||||||||||
| FTVIP Franklin U.S. Government Securities VIP Fund Class 2 |
354,366 | 1,361,794 | ||||||||||
| FTVIP Templeton Foreign VIP Fund Class 2 |
3,011,734 | 3,361,309 | ||||||||||
| Goldman Sachs VIT Strategic Growth Fund Institutional Shares |
182,439 | 470,818 | ||||||||||
| Invesco V.I. American Franchise Fund Series I |
63,636 | 72,828 | ||||||||||
| Invesco V.I. Conservative Balanced Fund Series I |
221,194 | 475,027 | ||||||||||
| Invesco V.I. Core Equity Fund Series I |
1,305,682 | 1,492,119 | ||||||||||
| Invesco V.I. EQV International Equity Fund Series 1 |
2,186,469 | 2,598,860 | ||||||||||
| Invesco V.I. Global Fund Series I |
2,977,230 | 2,508,776 | ||||||||||
| Invesco V.I. Global Real Estate Fund Series I |
214,368 | 201,494 | ||||||||||
| Invesco V.I. Global Strategic Income Fund Series I |
0 | 55 | ||||||||||
| Invesco V.I. Government Securities Fund Series I |
3,965 | 4,592 | ||||||||||
| Invesco V.I. Growth and Income Fund Series I |
3,889,292 | 2,999,585 | ||||||||||
| Invesco V.I. High Yield Fund Series I |
127,050 | 325,040 | ||||||||||
| Invesco V.I. Main Street Fund Series I |
76,341 | 41,194 | ||||||||||
|
45 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| Sub-accounts | Cost of Purchases | Proceeds from Sales | ||||||||||
| Janus Henderson Enterprise Portfolio Service Shares |
$ | 1,910,094 | $ | 1,716,766 | ||||||||
| Janus Henderson Forty Portfolio Service Shares |
576,575 | 577,339 | ||||||||||
| Janus Henderson Global Research Portfolio Service Shares |
843,520 | 965,378 | ||||||||||
| Janus Henderson Overseas Portfolio Service Shares |
1,570,332 | 2,871,013 | ||||||||||
| LVIP JPMorgan Core Bond Fund Standard Class |
564,172 | 190,574 | ||||||||||
| LVIP JPMorgan Mid Cap Value Fund Standard Class |
87,932 | 119,653 | ||||||||||
| LVIP JPMorgan Small Cap Core Fund Standard Class |
1,182,501 | 709,337 | ||||||||||
| LVIP JPMorgan U.S. Equity Fund Standard Class |
40,391 | 4,142 | ||||||||||
| MFS VIT Growth Series Initial Class |
6,197,848 | 6,069,640 | ||||||||||
| MFS VIT Investors Trust Series Initial Class |
215,760 | 490,497 | ||||||||||
| MFS VIT New Discovery Series Initial Class |
2,521,193 | 2,418,772 | ||||||||||
| MFS VIT Research Series Initial Class |
1,678,084 | 1,713,348 | ||||||||||
| MFS VIT Total Return Series Initial Class |
362,544 | 458,671 | ||||||||||
| MFS VIT Utilities Series Initial Class |
7,744,776 | 7,539,500 | ||||||||||
| MFS VIT II Core Equity Portfolio Initial Class |
2,186,125 | 2,220,562 | ||||||||||
| Morgan Stanley VIF Growth Portfolio Class I |
3,748,003 | 2,588,863 | ||||||||||
| Neuberger Berman AMT Mid Cap Growth Portfolio Class I |
1,895,906 | 2,184,818 | ||||||||||
| Neuberger Berman AMT Short Duration Bond Portfolio Class I |
2,662 | 5,298 | ||||||||||
| Neuberger Berman AMT Sustainable Equity Portfolio Class I |
34,370 | 33,166 | ||||||||||
| PIMCO CommodityRealReturn Strategy Portfolio Administrative Class |
357,733 | 235,125 | ||||||||||
| PIMCO Global Bond Opportunities Portfolio (Unhedged) Administrative Class |
88,633 | 94,822 | ||||||||||
| PIMCO Real Return Portfolio Administrative Class |
2,175,933 | 2,449,372 | ||||||||||
| PIMCO Short-Term Portfolio Administrative Class |
5,768,468 | 6,751,585 | ||||||||||
| PIMCO Total Return Portfolio Administrative Class |
3,446,685 | 4,108,252 | ||||||||||
| Pioneer Fund VCT Portfolio Class I |
186,474 | 155,207 | ||||||||||
| Pioneer Mid Cap Value VCT Portfolio Class I |
315,697 | 100,435 | ||||||||||
| Pioneer Select Mid Cap Growth VCT Portfolio Class I |
186,291 | 353,971 | ||||||||||
| Putnam VT Diversified Income Fund Class IB |
995,020 | 727,742 | ||||||||||
| Putnam VT International Value Fund Class IB |
4,042,880 | 3,917,822 | ||||||||||
| Putnam VT Large Cap Growth Fund Class IB |
27,702 | 55,153 | ||||||||||
| Putnam VT Large Cap Value Fund Class IB |
3,463,031 | 2,893,488 | ||||||||||
| Putnam VT Small Cap Value Fund Class IB |
28,431 | 82,702 | ||||||||||
| Putnam VT Sustainable Leaders Fund Class IB |
35,265 | 31,343 | ||||||||||
| SST SA Multi-Managed Mid Cap Value Portfolio Class 3 |
34,851 | 16,278 | ||||||||||
| SAST SA AB Growth Portfolio Class 1 |
892,458 | 768,277 | ||||||||||
| SAST SA DFA Ultra Short Bond Portfolio Class 1 |
70,869 | 60,800 | ||||||||||
| SAST SA Federated Hermes Corporate Bond Portfolio Class 1 |
10,827 | 41,491 | ||||||||||
| SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1 |
28,958 | 37,434 | ||||||||||
| SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1 |
638,031 | 386,692 | ||||||||||
| SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1 |
14,792 | 18,762 | ||||||||||
| SAST SA Goldman Sachs Global Bond Portfolio Class 1 |
9,684 | 7,688 | ||||||||||
| SAST SA Invesco Growth Opportunities Portfolio Class 1 |
1,051 | 3,957 | ||||||||||
| SAST SA Janus Focused Growth Portfolio Class 1 |
31,801 | 44,764 | ||||||||||
| SAST SA JPMorgan Diversified Balanced Portfolio Class 1 |
739,488 | 1,273,943 | ||||||||||
| SAST SA JPMorgan Emerging Markets Portfolio Class 1 |
61,448 | 71,312 | ||||||||||
| SAST SA JPMorgan Equity-Income Portfolio Class 1 |
423,472 | 194,930 | ||||||||||
| SAST SA JPMorgan Global Equities Portfolio Class 1 |
32,633 | 38,331 | ||||||||||
| SAST SA JPMorgan Large Cap Core Portfolio Class 1 |
28,247 | 39,418 | ||||||||||
| SAST SA JPMorgan MFS Core Bond Portfolio Class 1 |
7,273 | 6,710 | ||||||||||
| SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1 |
791,338 | 1,130,005 | ||||||||||
| SAST SA MFS Blue Chip Growth Portfolio Class 1 |
3,065 | 10,029 | ||||||||||
| SAST SA MFS Massachusetts Investors Trust Portfolio Class 1 |
139,254 | 116,412 | ||||||||||
| SAST SA MFS Total Return Portfolio Class 1 |
112,025 | 128,181 | ||||||||||
| SAST SA Morgan Stanley International Equities Portfolio Class 1 |
13,863 | 24,199 | ||||||||||
| SAST SA PineBridge High-Yield Bond Portfolio Class 1 |
23,070 | 13,916 | ||||||||||
| SAST SA Putnam International Growth and Income Portfolio Class 1 |
32,806 | 46,558 | ||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 1 |
70,706 | 349,742 | ||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 3 |
108,431 | 148,186 | ||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 1 |
27,392 | 23,498 | ||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 3 |
54,678 | 59,240 | ||||||||||
| VALIC Company I Core Bond Fund |
61,224 | 34,924 | ||||||||||
| VALIC Company I Dynamic Allocation Fund |
1,507,473 | 232,715 | ||||||||||
| VALIC Company I Emerging Economies Fund |
123,727 | 58,230 | ||||||||||
| VALIC Company I International Equities Index Fund |
2,190,321 | 2,313,285 | ||||||||||
| VALIC Company I International Value Fund |
41,673 | 26,670 | ||||||||||
|
46 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| Sub-accounts | Cost of Purchases | Proceeds from Sales | ||||||||||
| VALIC Company I Mid Cap Index Fund |
$ | 4,862,970 | $ | 2,727,970 | ||||||||
| VALIC Company I Mid Cap Value Fund |
96,935 | 29,105 | ||||||||||
| VALIC Company I Nasdaq-100 Index Fund |
4,947,329 | 4,498,139 | ||||||||||
| VALIC Company I Science & Technology Fund |
5,211,595 | 4,751,835 | ||||||||||
| VALIC Company I Small Cap Index Fund |
4,873,336 | 3,806,817 | ||||||||||
| VALIC Company I Stock Index Fund |
5,405,479 | 4,237,459 | ||||||||||
| VALIC Company I U.S. Socially Responsible Fund |
65,523 | 19,558 | ||||||||||
| VanEck VIP Emerging Markets Fund Initial Class |
20,928 | 31,489 | ||||||||||
| VanEck VIP Global Resources Fund Initial Class |
21,355 | 24,084 | ||||||||||
| Vanguard VIF High Yield Bond Portfolio |
1,127,142 | 1,265,089 | ||||||||||
| Vanguard VIF Real Estate Index Portfolio |
3,667,863 | 2,971,714 | ||||||||||
|
47 |
SEPARATE ACCOUNT VL-R
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 | |||||||||||||||||||||||||||||||
| AB VPS Balanced Hedged Allocation Portfolio Class A |
8,598 | 21.95 | 188,744 | 1.17 | 0.50 | 12.47 | ||||||||||||||||||||||||||||||||||
| AB VPS Large Cap Growth Portfolio Class A |
500,739 | 47.67 | 77.69 | 39,344,165 | 0.00 | 0.10 | 0.50 | 34.46 | 34.99 | |||||||||||||||||||||||||||||||
| AB VPS Relative Value Portfolio Class A |
17,288 | 106.12 | 1,834,508 | 1.45 | 0.50 | 11.47 | ||||||||||||||||||||||||||||||||||
| AB VPS Small Cap Growth Portfolio Class A |
10,020 | 57.67 | 577,851 | 0.00 | 0.50 | 17.44 | ||||||||||||||||||||||||||||||||||
| AB VPS Sustainable Global Thematic Growth Portfolio Class A |
43,554 | 19.38 | 45.87 | 1,462,630 | 0.29 | 0.10 | 0.50 | 15.43 | 15.89 | |||||||||||||||||||||||||||||||
| Alger Capital Appreciation Portfolio Class I-2 |
292,527 | 45.11 | 83.49 | 12,576,420 | 0.00 | 0.00 | 1.10 | 41.57 | 43.13 | |||||||||||||||||||||||||||||||
| Alger Mid Cap Growth Portfolio Class I-2 |
133,902 | 26.11 | 53.23 | 3,607,858 | 0.00 | 0.00 | 0.50 | 22.56 | 23.17 | |||||||||||||||||||||||||||||||
| American Century VP Capital Appreciation Fund Class I |
7,506 | 46.08 | 345,852 | 0.00 | 0.10 | 20.57 | ||||||||||||||||||||||||||||||||||
| American Century VP Disciplined Core Value Fund Class I |
4,901 | 35.20 | 172,501 | 1.50 | 0.10 | 8.54 | ||||||||||||||||||||||||||||||||||
| American Century VP Value Fund Class I |
512,377 | 23.47 | 46.98 | 16,984,738 | 2.33 | 0.00 | 0.70 | 8.34 | 9.10 | |||||||||||||||||||||||||||||||
| American Funds IS American High-Income Trust Class 2 |
108,848 | 14.62 | 15.19 | 1,481,566 | 7.13 | 0.20 | 0.70 | 11.67 | 12.23 | |||||||||||||||||||||||||||||||
| American Funds IS Asset Allocation Fund Class 2 |
623,292 | 20.54 | 22.02 | 10,250,507 | 2.22 | 0.00 | 0.70 | 13.47 | 14.27 | |||||||||||||||||||||||||||||||
| American Funds IS Global Growth Fund Class 2 |
163,807 | 26.87 | 28.34 | 3,314,933 | 0.91 | 0.20 | 0.70 | 21.75 | 22.36 | |||||||||||||||||||||||||||||||
| American Funds IS Growth Fund Class 2 |
320,482 | 40.84 | 43.78 | 8,894,876 | 0.37 | 0.00 | 0.70 | 37.52 | 38.48 | |||||||||||||||||||||||||||||||
| American Funds IS Growth-Income Fund Class 2 |
388,986 | 30.35 | 32.53 | 8,594,232 | 1.39 | 0.00 | 0.70 | 25.26 | 26.14 | |||||||||||||||||||||||||||||||
| American Funds IS International Fund Class 2 |
182,836 | 14.51 | 15.25 | 2,256,767 | 1.35 | 0.20 | 0.70 | 15.04 | 15.61 | |||||||||||||||||||||||||||||||
| BNY Mellon IP MidCap Stock Portfolio Initial Shares |
132,833 | 33.20 | 42.65 | 4,323,011 | 0.77 | 0.10 | 0.70 | 17.49 | 18.19 | |||||||||||||||||||||||||||||||
| BNY Mellon Stock Index Fund, Inc. Initial Shares |
98,871 | 45.34 | 104.62 | 6,716,936 | 1.42 | 0.10 | 0.50 | 25.30 | 25.80 | |||||||||||||||||||||||||||||||
| BNY Mellon VIF Opportunistic Small Cap Portfolio Initial Shares |
273,405 | 29.61 | 34.08 | 7,946,155 | 0.32 | 0.10 | 0.75 | 8.47 | 9.17 | |||||||||||||||||||||||||||||||
| EQ Advisors Multimanager Aggressive Equity Portfolio Class IA |
4,294 | 135.21 | 580,581 | 0.38 | 0.75 | 37.27 | ||||||||||||||||||||||||||||||||||
| EQ/Common Stock Index Portfolio Class IA |
13,226 | 164.52 | 2,175,935 | 1.11 | 0.75 | 24.20 | ||||||||||||||||||||||||||||||||||
| EQ/Core Plus Bond Portfolio Class IA |
40 | 333.42 | 13,290 | 2.19 | 0.75 | 3.75 | ||||||||||||||||||||||||||||||||||
| EQ/International Equity Index Portfolio Class IA |
287 | 519.89 | 149,153 | 2.83 | 0.75 | 18.17 | ||||||||||||||||||||||||||||||||||
| EQ/Moderate Allocation Portfolio Class IA |
6,020 | 58.04 | 349,416 | 1.78 | 0.75 | 11.51 | ||||||||||||||||||||||||||||||||||
| EQ/Money Market Portfolio Class IA |
53 | 185.55 | 9,891 | 4.53 | 0.75 | 3.67 | ||||||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Growth Portfolio Initial Class |
11,223 | 553.67 | 6,213,627 | 1.78 | 0.75 | 15.50 | ||||||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Portfolio Initial Class |
179,201 | 27.56 | 65.13 | 11,276,137 | 2.30 | 0.10 | 0.75 | 12.10 | 12.83 | |||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Portfolio Service Class 2 |
193,510 | 19.79 | 30.14 | 3,981,443 | 2.17 | 0.00 | 0.50 | 12.09 | 12.65 | |||||||||||||||||||||||||||||||
| Fidelity VIP Contrafund Portfolio Initial Class |
333,360 | 65.68 | 163.54 | 51,473,694 | 0.49 | 0.10 | 0.75 | 32.46 | 33.32 | |||||||||||||||||||||||||||||||
| Fidelity VIP Contrafund Portfolio Service Class 2 |
1,187,866 | 35.25 | 66.02 | 44,559,339 | 0.26 | 0.00 | 1.10 | 31.67 | 33.12 | |||||||||||||||||||||||||||||||
| Fidelity VIP Equity-Income Portfolio Initial Class |
237,642 | 138.55 | 32,924,330 | 1.86 | 0.75 | 9.82 | ||||||||||||||||||||||||||||||||||
| Fidelity VIP Equity-Income Portfolio Service Class 2 |
731,053 | 25.45 | 48.00 | 20,100,332 | 1.72 | 0.00 | 1.10 | 9.17 | 10.38 | |||||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2020 Portfolio Service Class 2 |
11,695 | 20.91 | 31.35 | 249,564 | 2.99 | 0.00 | 0.45 | 11.72 | 12.22 | |||||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2025 Portfolio Service Class 2 |
23,450 | 22.64 | 34.55 | 543,182 | 2.48 | 0.00 | 0.45 | 12.82 | 13.32 | |||||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2030 Portfolio Service Class 2 |
132,103 | 21.21 | 37.41 | 3,227,390 | 2.24 | 0.00 | 1.10 | 13.21 | 14.46 | |||||||||||||||||||||||||||||||
| Fidelity VIP Government Money Market Portfolio Initial Class |
1,087,913 | 10.45 | 10.64 | 13,606,233 | 5.10 | 0.00 | 1.10 | 3.75 | 4.89 | |||||||||||||||||||||||||||||||
| Fidelity VIP Government Money Market Portfolio Service Class 2 |
115,002 | 10.22 | 10.82 | 1,237,632 | 4.88 | 0.25 | 0.70 | 3.91 | 4.37 | |||||||||||||||||||||||||||||||
| Fidelity VIP Growth Portfolio Initial Class |
454,684 | 51.60 | 226.25 | 91,750,214 | 0.13 | 0.10 | 0.75 | 35.22 | 36.10 | |||||||||||||||||||||||||||||||
| Fidelity VIP Growth Portfolio Service Class 2 |
712,775 | 42.27 | 84.47 | 35,350,351 | 0.00 | 0.00 | 0.70 | 34.94 | 35.89 | |||||||||||||||||||||||||||||||
| Fidelity VIP High Income Portfolio Initial Class |
17,728 | 27.97 | 354.24 | 1,752,456 | 5.51 | 0.10 | 0.75 | 9.65 | 10.37 | |||||||||||||||||||||||||||||||
| Fidelity VIP Index 500 Portfolio Initial Class |
326,468 | 145.83 | 47,608,913 | 1.46 | 0.75 | 25.25 | ||||||||||||||||||||||||||||||||||
| Fidelity VIP Investment Grade Bond Portfolio Initial Class |
18,887 | 21.67 | 358.16 | 2,327,647 | 2.52 | 0.10 | 0.75 | 5.41 | 6.10 | |||||||||||||||||||||||||||||||
| Fidelity VIP Mid Cap Portfolio Service Class 2 |
461,922 | 27.86 | 51.95 | 12,443,229 | 0.38 | 0.00 | 1.10 | 13.55 | 14.80 | |||||||||||||||||||||||||||||||
| Fidelity VIP Overseas Portfolio Initial Class |
21,492 | 37.58 | 522.87 | 6,788,611 | 1.04 | 0.50 | 0.75 | 19.61 | 19.91 | |||||||||||||||||||||||||||||||
| FTVIP Franklin Mutual Shares VIP Fund Class 2 |
334,730 | 19.29 | 33.04 | 6,799,905 | 1.86 | 0.00 | 1.10 | 12.23 | 13.46 | |||||||||||||||||||||||||||||||
| FTVIP Franklin Small Cap Value VIP Fund Class 2 |
326,560 | 27.66 | 49.73 | 9,089,305 | 0.49 | 0.00 | 1.10 | 11.51 | 12.75 | |||||||||||||||||||||||||||||||
| FTVIP Franklin Small-Mid Cap Growth VIP Fund Class 2 |
622 | 34.68 | 36.06 | 22,309 | 0.00 | 0.25 | 0.50 | 26.11 | 26.42 | |||||||||||||||||||||||||||||||
| FTVIP Franklin U.S. Government Securities VIP Fund Class 2 |
137,698 | 12.75 | 14.50 | 1,685,386 | 2.13 | 0.10 | 0.70 | 3.74 | 4.36 | |||||||||||||||||||||||||||||||
| FTVIP Templeton Foreign VIP Fund Class 2 |
273,101 | 12.76 | 13.58 | 3,572,813 | 3.29 | 0.10 | 0.50 | 20.16 | 20.64 | |||||||||||||||||||||||||||||||
| Goldman Sachs VIT Strategic Growth Fund Institutional Shares |
95,560 | 47.90 | 50.98 | 4,776,354 | 0.00 | 0.10 | 0.50 | 41.24 | 41.80 | |||||||||||||||||||||||||||||||
| Invesco V.I. American Franchise Fund Series I |
20,419 | 38.12 | 39.37 | 794,244 | 0.00 | 0.10 | 0.50 | 40.23 | 40.79 | |||||||||||||||||||||||||||||||
| Invesco V.I. Conservative Balanced Fund Series I |
80,606 | 15.61 | 24.51 | 1,306,789 | 1.74 | 0.00 | 0.50 | 12.04 | 12.60 | |||||||||||||||||||||||||||||||
| Invesco V.I. Core Equity Fund Series I |
307,522 | 28.71 | 30.56 | 9,246,249 | 0.74 | 0.10 | 0.50 | 22.75 | 23.24 | |||||||||||||||||||||||||||||||
| Invesco V.I. EQV International Equity Fund Series 1 |
459,546 | 15.84 | 29.97 | 8,301,079 | 0.20 | 0.00 | 1.10 | 16.86 | 18.15 | |||||||||||||||||||||||||||||||
| Invesco V.I. Global Fund Series I |
335,117 | 27.45 | 51.04 | 9,830,694 | 0.23 | 0.00 | 1.10 | 33.27 | 34.73 | |||||||||||||||||||||||||||||||
| Invesco V.I. Global Real Estate Fund Series I |
51,332 | 11.89 | 23.67 | 698,260 | 1.45 | 0.00 | 0.70 | 8.29 | 9.05 | |||||||||||||||||||||||||||||||
| Invesco V.I. Global Strategic Income Fund Series I |
26 | 11.47 | 297 | 0.00 | 0.25 | 8.61 | ||||||||||||||||||||||||||||||||||
| Invesco V.I. Government Securities Fund Series I |
685 | 11.23 | 11.59 | 7,820 | 1.94 | 0.25 | 0.50 | 4.10 | 4.36 | |||||||||||||||||||||||||||||||
| Invesco V.I. Growth and Income Fund Series I |
402,464 | 43.05 | 45.44 | 11,468,772 | 1.57 | 0.00 | 0.75 | 11.82 | 12.66 | |||||||||||||||||||||||||||||||
| Invesco V.I. High Yield Fund Series I |
47,629 | 15.60 | 16.41 | 754,940 | 5.16 | 0.10 | 0.50 | 9.63 | 10.07 | |||||||||||||||||||||||||||||||
| Invesco V.I. Main Street Fund Series I |
21,147 | 40.25 | 851,162 | 0.85 | 0.10 | 23.09 | ||||||||||||||||||||||||||||||||||
| Janus Henderson Enterprise Portfolio Service Shares |
210,046 | 33.11 | 77.41 | 8,288,785 | 0.09 | 0.00 | 0.70 | 16.96 | 17.78 | |||||||||||||||||||||||||||||||
| Janus Henderson Forty Portfolio Service Shares |
53,664 | 38.69 | 76.29 | 1,932,102 | 0.13 | 0.00 | 0.70 | 38.68 | 39.65 | |||||||||||||||||||||||||||||||
|
48 |
SEPARATE ACCOUNT VL-R
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 | |||||||||||||||||||||||||||||||
| Janus Henderson Global Research Portfolio Service Shares |
137,635 | 20.53 | 28.30 | 3,841,714 | 0.77 | 0.10 | 0.70 | 25.59 | 26.34 | |||||||||||||||||||||||||||||||
| Janus Henderson Overseas Portfolio Service Shares |
503,045 | 11.13 | 13.22 | 6,338,991 | 1.32 | 0.00 | 1.10 | 9.38 | 10.58 | |||||||||||||||||||||||||||||||
| LVIP JPMorgan Core Bond Fund Standard Class |
355,794 | 10.92 | 15.49 | 3,870,983 | 3.67 | 0.00 | 0.70 | 5.17 | 5.91 | |||||||||||||||||||||||||||||||
| LVIP JPMorgan Mid Cap Value Fund Standard Class |
7,395 | 52.72 | 55.91 | 403,118 | 3.18 | 0.10 | 0.50 | 10.36 | 10.80 | |||||||||||||||||||||||||||||||
| LVIP JPMorgan Small Cap Core Fund Standard Class |
126,530 | 33.80 | 46.89 | 4,150,901 | 1.23 | 0.10 | 0.70 | 12.31 | 12.99 | |||||||||||||||||||||||||||||||
| LVIP JPMorgan U.S. Equity Fund Standard Class |
7,187 | 71.83 | 516,233 | 1.56 | 0.10 | 27.03 | ||||||||||||||||||||||||||||||||||
| MFS VIT Growth Series Initial Class |
320,982 | 53.80 | 69.62 | 34,237,784 | 0.00 | 0.10 | 0.75 | 34.85 | 35.73 | |||||||||||||||||||||||||||||||
| MFS VIT Investors Trust Series Initial Class |
7,322 | 441.84 | 3,235,159 | 0.71 | 0.75 | 18.09 | ||||||||||||||||||||||||||||||||||
| MFS VIT New Discovery Series Initial Class |
233,168 | 37.33 | 69.61 | 8,001,599 | 0.00 | 0.00 | 1.10 | 13.16 | 14.41 | |||||||||||||||||||||||||||||||
| MFS VIT Research Series Initial Class |
137,819 | 63.61 | 498.27 | 10,503,553 | 0.51 | 0.00 | 0.75 | 21.51 | 22.42 | |||||||||||||||||||||||||||||||
| MFS VIT Total Return Series Initial Class |
18,479 | 25.29 | 388.56 | 4,552,864 | 2.01 | 0.25 | 0.75 | 9.62 | 10.17 | |||||||||||||||||||||||||||||||
| MFS VIT Utilities Series Initial Class |
110,190 | 64.88 | 7,149,523 | 3.46 | 0.75 | -2.84 | ||||||||||||||||||||||||||||||||||
| MFS VIT II Core Equity Portfolio Initial Class |
386,414 | 26.06 | 59.02 | 14,612,625 | 0.54 | 0.10 | 0.75 | 22.22 | 23.02 | |||||||||||||||||||||||||||||||
| Morgan Stanley VIF Growth Portfolio Class I |
117,237 | 53.49 | 68.44 | 6,135,226 | 0.00 | 0.10 | 0.75 | 47.56 | 48.52 | |||||||||||||||||||||||||||||||
| Neuberger Berman AMT Mid Cap Growth Portfolio Class I |
245,045 | 25.72 | 56.07 | 7,564,253 | 0.00 | 0.00 | 0.70 | 17.32 | 18.15 | |||||||||||||||||||||||||||||||
| Neuberger Berman AMT Short Duration Bond Portfolio Class I |
2,937 | 14.04 | 41,245 | 4.70 | 0.10 | 5.80 | ||||||||||||||||||||||||||||||||||
| Neuberger Berman AMT Sustainable Equity Portfolio Class I |
24,123 | 16.35 | 57.93 | 554,824 | 0.34 | 0.00 | 0.50 | 26.27 | 26.90 | |||||||||||||||||||||||||||||||
| PIMCO CommodityRealReturn Strategy Portfolio Administrative Class |
95,951 | 10.46 | 22.03 | 936,672 | 16.07 | 0.00 | 1.10 | -8.86 | -7.85 | |||||||||||||||||||||||||||||||
| PIMCO Global Bond Opportunities Portfolio (Unhedged) Administrative Class |
46,634 | 10.00 | 16.25 | 489,354 | 2.19 | 0.00 | 0.70 | 4.53 | 5.26 | |||||||||||||||||||||||||||||||
| PIMCO Real Return Portfolio Administrative Class |
455,253 | 17.44 | 24.65 | 6,732,434 | 2.96 | 0.00 | 0.75 | 2.90 | 3.67 | |||||||||||||||||||||||||||||||
| PIMCO Short-Term Portfolio Administrative Class |
342,406 | 11.44 | 13.62 | 4,253,818 | 4.18 | 0.00 | 1.10 | 4.75 | 5.91 | |||||||||||||||||||||||||||||||
| PIMCO Total Return Portfolio Administrative Class |
876,631 | 13.89 | 17.04 | 12,484,572 | 3.41 | 0.00 | 1.10 | 4.78 | 5.93 | |||||||||||||||||||||||||||||||
| Pioneer Fund VCT Portfolio Class I |
48,212 | 43.13 | 49.47 | 2,044,450 | 0.86 | 0.10 | 0.70 | 28.03 | 28.80 | |||||||||||||||||||||||||||||||
| Pioneer Mid Cap Value VCT Portfolio Class I |
41,647 | 27.13 | 43.13 | 1,173,478 | 1.83 | 0.00 | 0.50 | 11.90 | 12.46 | |||||||||||||||||||||||||||||||
| Pioneer Select Mid Cap Growth VCT Portfolio Class I |
79,725 | 38.00 | 40.45 | 3,186,266 | 0.00 | 0.10 | 0.50 | 18.18 | 18.65 | |||||||||||||||||||||||||||||||
| Putnam VT Diversified Income Fund Class IB |
241,364 | 19.76 | 21.26 | 4,521,734 | 5.75 | 0.00 | 0.75 | 4.04 | 4.82 | |||||||||||||||||||||||||||||||
| Putnam VT International Value Fund Class IB |
310,827 | 11.92 | 13.93 | 4,213,433 | 1.69 | 0.10 | 1.10 | 17.39 | 18.56 | |||||||||||||||||||||||||||||||
| Putnam VT Large Cap Growth Fund Class IB |
9,582 | 9.63 | 9.80 | 93,541 | 0.00 | 0.25 | 0.50 | 43.76 | 44.12 | |||||||||||||||||||||||||||||||
| Putnam VT Large Cap Value Fund Class IB |
575,804 | 35.79 | 38.09 | 17,432,817 | 1.97 | 0.10 | 0.50 | 15.09 | 15.55 | |||||||||||||||||||||||||||||||
| Putnam VT Small Cap Value Fund Class IB |
4,357 | 32.91 | 52.74 | 150,940 | 0.15 | 0.00 | 0.35 | 23.32 | 23.75 | |||||||||||||||||||||||||||||||
| Putnam VT Sustainable Leaders Fund Class IB |
2,048 | 54.24 | 111,075 | 0.51 | 0.25 | 25.79 | ||||||||||||||||||||||||||||||||||
| SST SA Multi-Managed Mid Cap Value Portfolio Class 3 |
10,358 | 21.86 | 23.05 | 181,264 | 0.98 | 0.20 | 0.70 | 13.15 | 13.71 | |||||||||||||||||||||||||||||||
| SAST SA AB Growth Portfolio Class 1 |
173,143 | 52.64 | 53.11 | 9,117,898 | 0.00 | 0.10 | 0.25 | 34.69 | 34.89 | |||||||||||||||||||||||||||||||
| SAST SA DFA Ultra Short Bond Portfolio Class 1 |
110,011 | 11.96 | 12.07 | 1,325,035 | 1.19 | 0.10 | 0.25 | 4.37 | 4.53 | |||||||||||||||||||||||||||||||
| SAST SA Federated Hermes Corporate Bond Portfolio Class 1 |
5,919 | 31.68 | 31.96 | 188,118 | 3.33 | 0.10 | 0.25 | 7.79 | 7.95 | |||||||||||||||||||||||||||||||
| SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1 |
4,674 | 58.08 | 58.60 | 271,823 | 2.08 | 0.10 | 0.25 | 13.73 | 13.90 | |||||||||||||||||||||||||||||||
| SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1 |
39,981 | 68.64 | 69.26 | 2,751,212 | 2.40 | 0.10 | 0.25 | 7.11 | 7.27 | |||||||||||||||||||||||||||||||
| SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1 |
8,978 | 57.51 | 58.03 | 517,347 | 1.72 | 0.10 | 0.25 | 8.10 | 8.27 | |||||||||||||||||||||||||||||||
| SAST SA Goldman Sachs Global Bond Portfolio Class 1 |
9,743 | 16.71 | 16.85 | 157,250 | 0.00 | 0.10 | 0.25 | 4.02 | 4.17 | |||||||||||||||||||||||||||||||
| SAST SA Invesco Growth Opportunities Portfolio Class 1 |
7,265 | 18.11 | 18.27 | 131,569 | 0.00 | 0.10 | 0.25 | 12.22 | 12.39 | |||||||||||||||||||||||||||||||
| SAST SA Janus Focused Growth Portfolio Class 1 |
19,314 | 55.85 | 1,078,618 | 0.00 | 0.10 | 39.19 | ||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Diversified Balanced Portfolio Class 1 |
209,774 | 18.74 | 35.51 | 4,742,111 | 1.51 | 0.00 | 0.70 | 14.63 | 15.43 | |||||||||||||||||||||||||||||||
| SAST SA JPMorgan Emerging Markets Portfolio Class 1 |
10,274 | 29.42 | 29.68 | 302,838 | 3.92 | 0.10 | 0.25 | 10.02 | 10.18 | |||||||||||||||||||||||||||||||
| SAST SA JPMorgan Equity-Income Portfolio Class 1 |
91,913 | 35.91 | 36.23 | 3,213,399 | 2.42 | 0.10 | 0.25 | 4.42 | 4.58 | |||||||||||||||||||||||||||||||
| SAST SA JPMorgan Global Equities Portfolio Class 1 |
13,420 | 26.99 | 27.23 | 362,880 | 1.49 | 0.10 | 0.25 | 23.53 | 23.71 | |||||||||||||||||||||||||||||||
| SAST SA JPMorgan Large Cap Core Portfolio Class 1 |
9,907 | 44.31 | 44.70 | 439,750 | 0.76 | 0.10 | 0.25 | 27.16 | 27.35 | |||||||||||||||||||||||||||||||
| SAST SA JPMorgan MFS Core Bond Portfolio Class 1 |
2,841 | 25.36 | 25.58 | 72,359 | 2.95 | 0.10 | 0.25 | 6.28 | 6.44 | |||||||||||||||||||||||||||||||
| SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1 |
366,346 | 8.45 | 8.54 | 8,549,125 | 0.00 | 0.00 | 0.45 | 22.78 | 23.33 | |||||||||||||||||||||||||||||||
| SAST SA MFS Blue Chip Growth Portfolio Class 1 |
2,546 | 29.29 | 29.56 | 75,136 | 0.52 | 0.10 | 0.25 | 40.73 | 40.94 | |||||||||||||||||||||||||||||||
| SAST SA MFS Massachusetts Investors Trust Portfolio Class 1 |
14,855 | 42.84 | 43.22 | 636,680 | 0.87 | 0.10 | 0.25 | 18.76 | 18.93 | |||||||||||||||||||||||||||||||
| SAST SA MFS Total Return Portfolio Class 1 |
20,861 | 38.33 | 38.67 | 802,628 | 1.90 | 0.10 | 0.25 | 10.04 | 10.20 | |||||||||||||||||||||||||||||||
| SAST SA Morgan Stanley International Equities Portfolio Class 1 |
23,647 | 15.96 | 16.10 | 378,154 | 1.56 | 0.1 | 0.25 | 16.27 | 16.45 | |||||||||||||||||||||||||||||||
| SAST SA PineBridge High-Yield Bond Portfolio Class 1 |
9,118 | 33.54 | 33.84 | 306,407 | 6.51 | 0.1 | 0.25 | 15.88 | 16.05 | |||||||||||||||||||||||||||||||
| SAST SA Putnam International Growth and Income Portfolio Class 1 |
24,274 | 21.16 | 21.35 | 514,955 | 2.58 | 0.10 | 0.25 | 19.18 | 19.36 | |||||||||||||||||||||||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 1 |
67,009 | 92.70 | 93.53 | 5,531,983 | 0.00 | 0.10 | 0.25 | 39.35 | 39.56 | |||||||||||||||||||||||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 3 |
43,025 | 36.45 | 38.43 | 1,064,673 | 0.00 | 0.20 | 0.70 | 38.33 | 39.02 | |||||||||||||||||||||||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 1 |
13,954 | 19.01 | 19.18 | 265,815 | 2.20 | 0.10 | 0.25 | 4.81 | 4.97 | |||||||||||||||||||||||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 3 |
59,105 | 10.07 | 10.62 | 597,231 | 1.91 | 0.20 | 0.70 | 4.05 | 4.57 | |||||||||||||||||||||||||||||||
| VALIC Company I Core Bond Fund |
39,734 | 11.58 | 12.21 | 455,545 | 2.15 | 0.20 | 0.70 | 5.77 | 6.30 | |||||||||||||||||||||||||||||||
| VALIC Company I Dynamic Allocation Fund |
623,188 | 16.12 | 17.00 | 9,095,538 | 1.62 | 0.20 | 0.70 | 12.53 | 13.09 | |||||||||||||||||||||||||||||||
| VALIC Company I Emerging Economies Fund |
47,416 | 10.94 | 11.54 | 519,107 | 5.75 | 0.20 | 0.70 | 11.33 | 11.89 | |||||||||||||||||||||||||||||||
| VALIC Company I International Equities Index Fund |
338,794 | 20.30 | 24.78 | 4,735,953 | 2.49 | 0.00 | 0.75 | 16.38 | 17.25 | |||||||||||||||||||||||||||||||
| VALIC Company I International Value Fund |
19,246 | 11.37 | 12.81 | 218,881 | 3.69 | 0.25 | 0.70 | 13.59 | 14.10 | |||||||||||||||||||||||||||||||
| VALIC Company I Mid Cap Index Fund |
501,904 | 32.96 | 61.02 | 17,903,847 | 1.13 | 0.00 | 1.10 | 14.68 | 15.94 | |||||||||||||||||||||||||||||||
| VALIC Company I Mid Cap Value Fund |
14,571 | 23.40 | 24.68 | 277,198 | 0.70 | 0.20 | 0.70 | 16.16 | 16.74 | |||||||||||||||||||||||||||||||
| VALIC Company I Nasdaq-100 Index Fund |
161,001 | 123.76 | 138.29 | 12,349,293 | 0.28 | 0.00 | 0.75 | 53.34 | 54.49 | |||||||||||||||||||||||||||||||
| VALIC Company I Science & Technology Fund |
116,498 | 31.08 | 115.01 | 6,625,232 | 0.00 | 0.00 | 0.70 | 54.71 | 55.79 | |||||||||||||||||||||||||||||||
|
49 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| December 31, 2023 | For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||
| Investment | Expense | Total | ||||||||||||||||||||||||||||||||||||
| Unit Value ($)(a)(f) | Net | Income | Ratio (%)(d)(f) | Return (%)(e)(f) | ||||||||||||||||||||||||||||||||||
| Sub-accounts | Units | Lowest | Highest | Assets ($)(b) | Ratio(%)(C) | Lowest | Highest | Lowest | Highest | |||||||||||||||||||||||||||||
| VALIC Company I Small Cap Index Fund |
325,778 | 21.51 | 46.12 | 9,097,938 | 1.25 | 0.00 | 0.70 | 15.55 | 16.35 | |||||||||||||||||||||||||||||
| VALIC Company I Stock Index Fund |
703,776 | 53.49 | 65.43 | 28,152,592 | 1.24 | 0.00 | 0.75 | 24.86 | 25.80 | |||||||||||||||||||||||||||||
| VALIC Company I U.S. Socially Responsible Fund |
8,866 | 30.90 | 33.12 | 220,245 | 1.18 | 0.00 | 0.70 | 20.85 | 21.70 | |||||||||||||||||||||||||||||
| VanEck VIP Emerging Markets Fund Initial Class |
4,097 | 30.92 | 126,680 | 3.80 | 0.50 | 9.23 | ||||||||||||||||||||||||||||||||
| VanEck VIP Global Resources Fund Initial Class |
7,604 | 34.83 | 264,839 | 2.79 | 0.50 | -4.06 | ||||||||||||||||||||||||||||||||
| Vanguard VIF High Yield Bond Portfolio |
254,976 | 19.68 | 30.69 | 5,705,616 | 4.78 | 0.00 | 1.10 | 10.45 | 11.67 | |||||||||||||||||||||||||||||
| Vanguard VIF Real Estate Index Portfolio |
538,660 | 21.45 | 38.51 | 13,152,940 | 2.32 | 0.00 | 1.10 | 10.48 | 11.70 | |||||||||||||||||||||||||||||
| December 31, 2022 | For the Year Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||||
| Investment | Expense | Total | ||||||||||||||||||||||||||||||||||||
| Unit Value ($)(a)(f) | Net | Income | Ratio (%)(d)(f) | Return (%)(e)(f) | ||||||||||||||||||||||||||||||||||
| Sub-accounts | Units | Lowest | Highest | Assets ($)(b) | Ratio (%)(c) | Lowest | Highest | Lowest | Highest | |||||||||||||||||||||||||||||
| AB VPS Balanced Hedged Allocation Portfolio Class A |
9,103 | 19.52 | 177,672 | 3.24 | 0.50 | -19.39 | ||||||||||||||||||||||||||||||||
| AB VPS Intermediate Bond Portfolio Class A |
— | 15.02 | — | 0.00 | 0.50 | -4.13 | ||||||||||||||||||||||||||||||||
| AB VPS Large Cap Growth Portfolio Class A |
502,708 | 35.31 | 57.78 | 29,364,827 | 0.00 | 0.10 | 0.50 | -28.86 | -28.58 | |||||||||||||||||||||||||||||
| AB VPS Relative Value Portfolio Class A |
18,596 | 95.20 | 1,770,325 | 1.35 | 0.50 | -4.67 | ||||||||||||||||||||||||||||||||
| AB VPS Small Cap Growth Portfolio Class A |
10,800 | 49.11 | 530,335 | 0.00 | 0.50 | -39.40 | ||||||||||||||||||||||||||||||||
| AB VPS Sustainable Global Thematic Growth Portfolio Class A |
44,985 | 16.72 | 39.74 | 1,322,741 | 0.00 | 0.10 | 0.50 | -27.35 | -27.06 | |||||||||||||||||||||||||||||
| Alger Capital Appreciation Portfolio Class I-2 |
311,250 | 31.86 | 58.33 | 9,330,065 | 0.00 | 0.00 | 1.10 | -37.22 | -36.52 | |||||||||||||||||||||||||||||
| Alger Mid Cap Growth Portfolio Class I-2 |
139,141 | 21.31 | 43.22 | 3,038,541 | 0.00 | 0.00 | 0.50 | -36.39 | -36.07 | |||||||||||||||||||||||||||||
| American Century VP Capital Appreciation Fund Class I |
7,691 | 38.22 | 293,931 | 0.00 | 0.10 | -28.18 | ||||||||||||||||||||||||||||||||
| American Century VP Disciplined Core Value Fund Class I |
4,861 | 32.43 | 157,626 | 1.68 | 0.10 | -12.82 | ||||||||||||||||||||||||||||||||
| American Century VP Value Fund Class I |
544,184 | 43.06 | 43.62 | 16,532,284 | 2.02 | 0.00 | 0.75 | -0.21 | 0.54 | |||||||||||||||||||||||||||||
| American Funds IS American High-Income Trust Class 2 |
105,538 | 13.09 | 13.53 | 1,279,218 | 7.43 | 0.20 | 0.70 | -9.90 | -9.45 | |||||||||||||||||||||||||||||
| American Funds IS Asset Allocation Fund Class 2 |
624,816 | 18.10 | 18.99 | 8,990,545 | 1.80 | 0.20 | 0.70 | -14.01 | -13.58 | |||||||||||||||||||||||||||||
| American Funds IS Global Growth Fund Class 2 |
169,450 | 22.07 | 23.16 | 2,790,886 | 0.63 | 0.20 | 0.70 | -25.26 | -24.89 | |||||||||||||||||||||||||||||
| American Funds IS Growth Fund Class 2 |
326,979 | 29.70 | 31.16 | 6,532,713 | 0.30 | 0.20 | 0.70 | -30.43 | -30.08 | |||||||||||||||||||||||||||||
| American Funds IS Growth-Income Fund Class 2 |
390,488 | 24.23 | 25.42 | 6,837,886 | 1.22 | 0.20 | 0.70 | -17.07 | -16.66 | |||||||||||||||||||||||||||||
| American Funds IS International Fund Class 2 |
177,889 | 12.62 | 13.19 | 1,899,628 | 1.69 | 0.20 | 0.70 | -21.34 | -20.94 | |||||||||||||||||||||||||||||
| BNY Mellon IP MidCap Stock Portfolio Initial Shares |
143,420 | 28.09 | 36.30 | 3,930,665 | 0.69 | 0.10 | 0.70 | -14.68 | -14.16 | |||||||||||||||||||||||||||||
| BNY Mellon Stock Index Fund, Inc. Initial Shares |
101,035 | 36.04 | 83.50 | 5,507,377 | 1.28 | 0.10 | 0.50 | -18.72 | -18.40 | |||||||||||||||||||||||||||||
| BNY Mellon VIF Opportunistic Small Cap Portfolio Initial Shares |
271,452 | 27.12 | 31.42 | 7,183,711 | -3.51 | 0.10 | 0.75 | -17.24 | -16.70 | |||||||||||||||||||||||||||||
| EQ Advisors Multimanager Aggressive Equity Portfolio Class IA |
4,878 | 98.50 | 480,482 | 0.00 | 0.75 | -32.66 | ||||||||||||||||||||||||||||||||
| EQ/Common Stock Index Portfolio Class IA |
14,504 | 132.46 | 1,921,262 | 0.71 | 0.75 | -20.07 | ||||||||||||||||||||||||||||||||
| EQ/Core Plus Bond Portfolio Class IA |
45 | 321.38 | 14,517 | 2.24 | 0.75 | -13.58 | ||||||||||||||||||||||||||||||||
| EQ/International Equity Index Portfolio Class IA |
307 | 439.94 | 134,854 | 2.20 | 0.75 | -12.56 | ||||||||||||||||||||||||||||||||
| EQ/Moderate Allocation Portfolio Class IA |
723 | 520.51 | 376,272 | 1.12 | 0.75 | -16.10 | ||||||||||||||||||||||||||||||||
| EQ/Money Market Portfolio Class IA |
68 | 178.98 | 12,248 | 0.94 | 0.75 | 0.34 | ||||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Growth Portfolio Initial Class |
12,136 | 479.37 | 5,817,740 | 1.70 | 0.75 | -17.50 | ||||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Portfolio Initial Class |
34,359 | 24.42 | 581.00 | 10,845,351 | 1.95 | 0.10 | 0.75 | -15.57 | -15.02 | |||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Portfolio Service Class 2 |
200,034 | 24.38 | 26.75 | 3,687,751 | 1.79 | 0.00 | 0.75 | -15.78 | -15.15 | |||||||||||||||||||||||||||||
| Fidelity VIP Contrafund Portfolio Initial Class |
361,439 | 49.27 | 123.46 | 42,108,257 | 0.46 | 0.10 | 0.75 | -26.86 | -26.39 | |||||||||||||||||||||||||||||
| Fidelity VIP Contrafund Portfolio Service Class 2 |
1,254,816 | 26.77 | 49.60 | 35,458,051 | 0.24 | 0.00 | 1.10 | -27.29 | -26.49 | |||||||||||||||||||||||||||||
| Fidelity VIP Equity-Income Portfolio Initial Class |
255,457 | 126.15 | 32,226,860 | 1.82 | 0.75 | -5.67 | ||||||||||||||||||||||||||||||||
| Fidelity VIP Equity-Income Portfolio Service Class 2 |
765,987 | 23.31 | 43.49 | 19,124,245 | 1.65 | 0.00 | 1.10 | -6.28 | -5.24 | |||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2020 Portfolio Service Class 2 |
12,228 | 18.72 | 27.93 | 233,558 | 1.73 | 0.00 | 0.45 | -16.34 | -15.97 | |||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2025 Portfolio Service Class 2 |
36,375 | 20.07 | 30.49 | 741,849 | 1.74 | 0.00 | 0.45 | -17.01 | -16.64 | |||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2030 Portfolio Service Class 2 |
137,491 | 18.73 | 32.68 | 2,940,151 | 1.62 | 0.00 | 1.10 | -17.99 | -17.09 | |||||||||||||||||||||||||||||
| Fidelity VIP Government Money Market Portfolio Initial Class |
1,151,207 | 10.07 | 10.14 | 13,695,581 | 2.01 | 0.00 | 1.10 | 0.74 | 1.23 | |||||||||||||||||||||||||||||
| Fidelity VIP Government Money Market Portfolio Service Class 2 |
157,339 | 9.84 | 10.36 | 1,622,196 | 1.77 | 0.25 | 0.70 | 0.56 | 1.01 | |||||||||||||||||||||||||||||
| Fidelity VIP Growth Portfolio Initial Class |
482,060 | 37.91 | 167.32 | 72,156,994 | 0.58 | 0.10 | 0.75 | -25.02 | -24.53 | |||||||||||||||||||||||||||||
| Fidelity VIP Growth Portfolio Service Class 2 |
730,782 | 31.32 | 62.16 | 26,453,003 | 0.33 | 0.00 | 0.70 | -25.17 | -24.64 | |||||||||||||||||||||||||||||
| Fidelity VIP High Income Portfolio Initial Class |
19,317 | 25.34 | 323.06 | 1,735,324 | 4.84 | 0.10 | 0.75 | -12.04 | -11.46 | |||||||||||||||||||||||||||||
| Fidelity VIP Index 500 Portfolio Initial Class |
348,525 | 116.43 | 40,578,068 | 1.38 | 0.75 | -18.82 | ||||||||||||||||||||||||||||||||
| Fidelity VIP Investment Grade Bond Portfolio Initial Class |
20,295 | 20.42 | 339.78 | 2,372,446 | 2.11 | 0.10 | 0.75 | -13.61 | -13.05 | |||||||||||||||||||||||||||||
| Fidelity VIP Mid Cap Portfolio Service Class 2 |
486,453 | 24.54 | 45.25 | 11,519,093 | 0.25 | 0.00 | 1.10 | -15.90 | -14.97 | |||||||||||||||||||||||||||||
| Fidelity VIP Overseas Portfolio Initial Class |
22,574 | 31.34 | 437.15 | 6,074,911 | 0.93 | 0.50 | 0.75 | -25.05 | -24.86 | |||||||||||||||||||||||||||||
| FTVIP Franklin Mutual Shares VIP Fund Class 2 |
344,817 | 17.19 | 29.12 | 6,188,185 | 1.79 | 0.00 | 1.10 | -8.44 | -7.43 | |||||||||||||||||||||||||||||
| FTVIP Franklin Small Cap Value VIP Fund Class 2 |
318,474 | 24.80 | 44.11 | 7,861,992 | 0.99 | 0.00 | 1.10 | -11.05 | -10.06 | |||||||||||||||||||||||||||||
| FTVIP Franklin Small-Mid Cap Growth VIP Fund Class 2 |
680 | 27.50 | 28.52 | 19,326 | 0.00 | 0.25 | 0.50 | -34.02 | -33.86 | |||||||||||||||||||||||||||||
| FTVIP Franklin U.S. Government Securities VIP Fund Class 2 |
225,652 | 12.22 | 13.97 | 2,657,889 | 2.36 | 0.10 | 0.70 | -10.38 | -9.84 | |||||||||||||||||||||||||||||
| FTVIP Templeton Foreign VIP Fund Class 2 |
306,634 | 11.26 | 18.14 | 3,324,304 | 2.80 | 0.10 | 0.75 | -8.29 | -7.70 | |||||||||||||||||||||||||||||
| Goldman Sachs VIT Strategic Growth Fund Institutional Shares |
106,347 | 33.92 | 35.95 | 3,754,625 | 0.00 | 0.10 | 0.50 | -32.85 | -32.58 | |||||||||||||||||||||||||||||
| Invesco V.I. American Franchise Fund Series I |
21,146 | 27.18 | 27.97 | 584,673 | 0.00 | 0.10 | 0.50 | -31.46 | -31.18 | |||||||||||||||||||||||||||||
| Invesco V.I. Conservative Balanced Fund Series I |
99,201 | 19.96 | 21.77 | 1,434,026 | 1.26 | 0.00 | 0.75 | -17.48 | -16.85 | |||||||||||||||||||||||||||||
| Invesco V.I. Core Equity Fund Series I |
324,888 | 23.39 | 24.80 | 7,913,272 | 0.86 | 0.10 | 0.50 | -20.94 | -20.63 | |||||||||||||||||||||||||||||
| Invesco V.I. EQV International Equity Fund Series 1 |
479,666 | 13.55 | 25.36 | 7,390,954 | 1.54 | 0.00 | 1.10 | -19.20 | -18.31 | |||||||||||||||||||||||||||||
|
50 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| December 31, 2022 | For the Year Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||||
| Investment | Expense | Total | ||||||||||||||||||||||||||||||||||||
| Unit Value ($)(a)(f) | Net | Income | Ratio (%)(d)(f) | Return (%)(e)(f) | ||||||||||||||||||||||||||||||||||
| Sub-accounts | Units | Lowest | Highest | Assets ($)(b) | Ratio (%)(c) | Lowest | Highest | Lowest | Highest | |||||||||||||||||||||||||||||
| Invesco V.I. Global Fund Series I |
356,891 | 20.59 | 37.88 | 7,794,534 | 0.00 | 0.00 | 1.10 | -32.51 | -31.76 | |||||||||||||||||||||||||||||
| Invesco V.I. Global Real Estate Fund Series I |
50,792 | 10.98 | 21.71 | 636,895 | 2.82 | 0.00 | 0.70 | -25.46 | -24.93 | |||||||||||||||||||||||||||||
| Invesco V.I. Global Strategic Income Fund Series I |
31 | 10.56 | 326 | 0.00 | 0.25 | -11.68 | ||||||||||||||||||||||||||||||||
| Invesco V.I. Government Securities Fund Series I |
763 | 10.79 | 11.11 | 8,242 | 2.00 | 0.25 | 0.50 | -10.74 | -10.52 | |||||||||||||||||||||||||||||
| Invesco V.I. Growth and Income Fund Series I |
426,195 | 38.50 | 40.34 | 10,827,720 | 1.58 | 0.00 | 0.75 | -6.45 | -5.75 | |||||||||||||||||||||||||||||
| Invesco V.I. High Yield Fund Series I |
63,749 | 14.23 | 14.91 | 916,604 | 4.68 | 0.10 | 0.50 | -10.01 | -9.65 | |||||||||||||||||||||||||||||
| Invesco V.I. Main Street Fund Series I |
21,825 | 32.70 | 713,635 | 1.40 | 0.10 | -20.21 | ||||||||||||||||||||||||||||||||
| Janus Henderson Enterprise Portfolio Service Shares |
218,571 | 28.31 | 65.72 | 7,417,232 | 0.08 | 0.00 | 0.70 | -16.73 | -16.15 | |||||||||||||||||||||||||||||
| Janus Henderson Forty Portfolio Service Shares |
54,172 | 27.90 | 54.63 | 1,386,984 | 0.05 | 0.00 | 0.70 | -34.19 | -33.73 | |||||||||||||||||||||||||||||
| Janus Henderson Global Research Portfolio Service Shares |
149,107 | 16.34 | 22.40 | 3,264,433 | 0.84 | 0.10 | 0.70 | -20.17 | -19.69 | |||||||||||||||||||||||||||||
| Janus Henderson Overseas Portfolio Service Shares |
613,640 | 10.18 | 11.95 | 7,031,736 | 0.00 | 0.00 | 1.10 | -9.83 | -8.84 | |||||||||||||||||||||||||||||
| LVIP JPMorgan Core Bond Fund Standard Class |
332,110 | 10.38 | 14.63 | 3,419,989 | 0.00 | 0.00 | 0.70 | -13.18 | -12.58 | |||||||||||||||||||||||||||||
| LVIP JPMorgan Mid Cap Value Fund Standard Class |
9,044 | 47.77 | 50.46 | 442,065 | 0.00 | 0.10 | 0.50 | -8.62 | -8.25 | |||||||||||||||||||||||||||||
| LVIP JPMorgan Small Cap Core Fund Standard Class |
115,521 | 29.91 | 43.40 | 3,344,635 | 0.00 | 0.10 | 0.75 | -19.95 | -19.43 | |||||||||||||||||||||||||||||
| LVIP JPMorgan U.S. Equity Fund Standard Class |
7,064 | 56.54 | 399,416 | 0.00 | 0.10 | -18.78 | ||||||||||||||||||||||||||||||||
| MFS VIT Growth Series Initial Class |
350,145 | 39.64 | 51.63 | 27,113,408 | 0.00 | 0.10 | 0.75 | -32.15 | -31.70 | |||||||||||||||||||||||||||||
| MFS VIT Investors Trust Series Initial Class |
8,431 | 374.14 | 3,154,524 | 0.00 | 0.75 | -17.11 | ||||||||||||||||||||||||||||||||
| MFS VIT New Discovery Series Initial Class |
230,098 | 32.99 | 60.84 | 6,934,898 | 0.00 | 0.00 | 1.10 | -30.53 | -29.76 | |||||||||||||||||||||||||||||
| MFS VIT Research Series Initial Class |
146,183 | 51.96 | 410.08 | 9,136,996 | 0.46 | 0.00 | 0.75 | -17.83 | -17.21 | |||||||||||||||||||||||||||||
| MFS VIT Total Return Series Initial Class |
20,654 | 22.96 | 354.46 | 4,487,081 | 1.64 | 0.25 | 0.75 | -10.26 | -9.81 | |||||||||||||||||||||||||||||
| MFS VIT Utilities Series Initial Class |
11,942 | 667.79 | 7,974,565 | 2.36 | 0.75 | 0.00 | 0.00 | |||||||||||||||||||||||||||||||
| MFS VIT II Core Equity Portfolio Initial Class |
405,039 | 21.18 | 48.29 | 12,552,003 | 0.30 | 0.10 | 0.75 | -17.89 | -17.35 | |||||||||||||||||||||||||||||
| Morgan Stanley VIF Growth Portfolio Class I |
95,866 | 36.01 | 46.38 | 3,363,578 | 0.00 | 0.10 | 0.75 | -60.37 | -60.11 | |||||||||||||||||||||||||||||
| Neuberger Berman AMT Mid Cap Growth Portfolio Class I |
252,636 | 21.92 | 47.46 | 6,646,906 | 0.00 | 0.00 | 0.70 | -29.23 | -28.73 | |||||||||||||||||||||||||||||
| Neuberger Berman AMT Short Duration Bond Portfolio Class I |
3,270 | 13.27 | 43,407 | 3.78 | 0.10 | -5.28 | ||||||||||||||||||||||||||||||||
| Neuberger Berman AMT Sustainable Equity Portfolio Class I |
24,761 | 12.95 | 45.65 | 444,659 | 0.42 | 0.00 | 0.50 | -18.86 | -18.45 | |||||||||||||||||||||||||||||
| PIMCO CommodityRealReturn Strategy Portfolio Administrative Class |
100,952 | 11.47 | 23.91 | 1,052,821 | 23.10 | 0.00 | 1.10 | 7.43 | 8.61 | |||||||||||||||||||||||||||||
| PIMCO Global Bond Opportunities Portfolio (Unhedged) Administrative Class |
48,477 | 9.57 | 15.44 | 487,098 | 1.42 | 0.00 | 0.70 | -11.62 | -11.00 | |||||||||||||||||||||||||||||
| PIMCO Real Return Portfolio Administrative Class |
491,982 | 16.83 | 20.58 | 6,961,976 | 6.97 | 0.00 | 0.75 | -12.56 | -11.90 | |||||||||||||||||||||||||||||
| PIMCO Short-Term Portfolio Administrative Class |
435,034 | 10.92 | 12.86 | 5,184,483 | 1.66 | 0.00 | 1.10 | -1.24 | -0.15 | |||||||||||||||||||||||||||||
| PIMCO Total Return Portfolio Administrative Class |
943,886 | 13.26 | 16.08 | 12,871,503 | 2.44 | 0.00 | 1.10 | -15.24 | -14.30 | |||||||||||||||||||||||||||||
| Pioneer Fund VCT Portfolio Class I |
49,838 | 33.49 | 38.64 | 1,638,726 | 0.49 | 0.10 | 0.70 | -20.06 | -19.58 | |||||||||||||||||||||||||||||
| Pioneer Mid Cap Value VCT Portfolio Class I |
38,551 | 24.24 | 38.35 | 965,818 | 1.95 | 0.00 | 0.50 | -6.11 | -5.64 | |||||||||||||||||||||||||||||
| Pioneer Select Mid Cap Growth VCT Portfolio Class I |
84,389 | 32.16 | 34.09 | 2,838,193 | 0.00 | 0.10 | 0.50 | -31.40 | -31.13 | |||||||||||||||||||||||||||||
| Putnam VT Diversified Income Fund Class IB |
237,959 | 18.85 | 20.43 | 4,301,269 | 6.47 | 0.00 | 0.75 | -3.07 | -2.35 | |||||||||||||||||||||||||||||
| Putnam VT International Value Fund Class IB |
301,692 | 10.16 | 11.75 | 3,442,017 | 2.05 | 0.10 | 1.10 | -7.83 | -6.90 | |||||||||||||||||||||||||||||
| Putnam VT Large Cap Growth Fund Class IB |
13,525 | 6.70 | 6.80 | 91,507 | 0.00 | 0.25 | 0.50 | -30.85 | -30.68 | |||||||||||||||||||||||||||||
| Putnam VT Large Cap Value Fund Class IB |
600,905 | 31.10 | 32.97 | 15,715,274 | 1.44 | 0.10 | 0.50 | -3.61 | -3.23 | |||||||||||||||||||||||||||||
| Putnam VT Small Cap Value Fund Class IB |
6,901 | 26.11 | 42.62 | 191,387 | 0.16 | 0.00 | 0.50 | -13.41 | -12.98 | |||||||||||||||||||||||||||||
| Putnam VT Sustainable Leaders Fund Class IB |
2,048 | 41.82 | 43.12 | 87,697 | 0.49 | 0.25 | 0.50 | -23.29 | -23.10 | |||||||||||||||||||||||||||||
| SST SA Multi-Managed Mid Cap Value Portfolio Class 3 |
10,104 | 19.32 | 20.27 | 155,427 | 0.50 | 0.20 | 0.70 | -9.64 | -9.19 | |||||||||||||||||||||||||||||
| SAST SA AB Growth Portfolio Class 1 |
183,634 | 39.08 | 39.37 | 7,176,189 | 0.00 | 0.10 | 0.25 | -28.78 | -28.67 | |||||||||||||||||||||||||||||
| SAST SA DFA Ultra Short Bond Portfolio Class 1 |
110,280 | 11.46 | 11.55 | 1,271,272 | 0.00 | 0.10 | 0.25 | -1.78 | -1.63 | |||||||||||||||||||||||||||||
| SAST SA Federated Hermes Corporate Bond Portfolio Class 1 |
7,137 | 29.39 | 29.61 | 210,262 | 3.65 | 0.10 | 0.25 | -14.49 | -14.36 | |||||||||||||||||||||||||||||
| SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1 |
5,200 | 51.07 | 51.45 | 265,871 | 0.63 | 0.10 | 0.25 | -27.13 | -27.02 | |||||||||||||||||||||||||||||
| SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1 |
41,072 | 64.09 | 64.56 | 2,637,387 | 1.69 | 0.10 | 0.25 | -1.59 | -1.44 | |||||||||||||||||||||||||||||
| SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1 |
9,191 | 53.20 | 53.60 | 489,709 | 1.63 | 0.10 | 0.25 | -7.93 | -7.80 | |||||||||||||||||||||||||||||
| SAST SA Goldman Sachs Global Bond Portfolio Class 1 |
9,604 | 16.06 | 16.18 | 148,801 | 0.00 | 0.10 | 0.25 | -19.14 | -19.01 | |||||||||||||||||||||||||||||
| SAST SA Invesco Growth Opportunities Portfolio Class 1 |
7,420 | 16.14 | 16.26 | 119,737 | 0.00 | 0.10 | 0.25 | -35.53 | -35.43 | |||||||||||||||||||||||||||||
| SAST SA Janus Focused Growth Portfolio Class 1 |
19,540 | 40.12 | 783,948 | 0.00 | 0.10 | -33.61 | ||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Diversified Balanced Portfolio Class 1 |
236,228 | 16.35 | 30.76 | 4,681,073 | 1.10 | 0.00 | 0.70 | -16.55 | -15.96 | |||||||||||||||||||||||||||||
| SAST SA JPMorgan Emerging Markets Portfolio Class 1 |
11,016 | 26.74 | 26.94 | 295,002 | 2.65 | 0.10 | 0.25 | -25.64 | -25.52 | |||||||||||||||||||||||||||||
| SAST SA JPMorgan Equity-Income Portfolio Class 1 |
95,924 | 34.39 | 34.64 | 3,211,424 | 1.83 | 0.10 | 0.25 | -2.08 | -1.94 | |||||||||||||||||||||||||||||
| SAST SA JPMorgan Global Equities Portfolio Class 1 |
14,302 | 21.85 | 22.01 | 312,939 | 1.63 | 0.10 | 0.25 | -16.03 | -15.90 | |||||||||||||||||||||||||||||
| SAST SA JPMorgan Large Cap Core Portfolio Class 1 |
10,564 | 34.84 | 35.10 | 368,610 | 0.88 | 0.10 | 0.25 | -20.39 | -20.27 | |||||||||||||||||||||||||||||
| SAST SA JPMorgan MFS Core Bond Portfolio Class 1 |
2,898 | 23.86 | 24.04 | 69,406 | 3.03 | 0.10 | 0.25 | -13.35 | -13.22 | |||||||||||||||||||||||||||||
| SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1 |
380,981 | 6.88 | 6.92 | 7,241,284 | 0.00 | 0.00 | 0.50 | -27.43 | -27.07 | |||||||||||||||||||||||||||||
| SAST SA MFS Blue Chip Growth Portfolio Class 1 |
2,876 | 20.82 | 20.97 | 60,237 | 0.00 | 0.10 | 0.25 | -29.99 | -29.88 | |||||||||||||||||||||||||||||
| SAST SA MFS Massachusetts Investors Trust Portfolio Class 1 |
15,680 | 36.07 | 36.34 | 565,823 | 1.11 | 0.10 | 0.25 | -16.54 | -16.41 | |||||||||||||||||||||||||||||
| SAST SA MFS Total Return Portfolio Class 1 |
22,437 | 34.84 | 35.09 | 783,827 | 1.50 | 0.10 | 0.25 | -9.92 | -9.78 | |||||||||||||||||||||||||||||
| SAST SA Morgan Stanley International Equities Portfolio Class 1 |
24,633 | 13.72 | 13.83 | 338,669 | 2.56 | 0.10 | 0.25 | -14.20 | -14.07 | |||||||||||||||||||||||||||||
| SAST SA PineBridge High-Yield Bond Portfolio Class 1 |
9,410 | 28.95 | 29.16 | 272,846 | 5.58 | 0.10 | 0.25 | -10.05 | -9.91 | |||||||||||||||||||||||||||||
| SAST SA Putnam International Growth and Income Portfolio Class 1 |
25,590 | 17.76 | 17.89 | 455,336 | 1.63 | 0.10 | 0.25 | -6.93 | -6.79 | |||||||||||||||||||||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 1 |
70,568 | 66.52 | 67.02 | 4,188,294 | 0.00 | 0.10 | 0.25 | -36.50 | -36.40 | |||||||||||||||||||||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 3 |
45,003 | 26.35 | 27.64 | 797,298 | 0.00 | 0.20 | 0.70 | -36.92 | -36.60 | |||||||||||||||||||||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 1 |
14,035 | 18.14 | 18.27 | 254,990 | 1.25 | 0.10 | 0.25 | -13.63 | -13.50 | |||||||||||||||||||||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 3 |
60,561 | 9.68 | 10.15 | 585,682 | 0.96 | 0.20 | 0.70 | -14.27 | -13.84 | |||||||||||||||||||||||||||||
| VALIC Company I Core Bond Fund |
37,966 | 10.95 | 11.49 | 413,257 | 1.15 | 0.20 | 0.70 | -14.85 | -14.42 | |||||||||||||||||||||||||||||
|
51 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| December 31, 2022 | For the Year Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||||
| Investment | Expense | Total | ||||||||||||||||||||||||||||||||||||
| Unit Value ($)(a)(f) | Net | Income | Ratio (%)(d)(f) | Return (%)(e)(f) | ||||||||||||||||||||||||||||||||||
| Sub-accounts | Units | Lowest | Highest | Assets ($)(b) | Ratio (%)(c) | Lowest | Highest | Lowest | Highest | |||||||||||||||||||||||||||||
| VALIC Company I Dynamic Allocation Fund |
574,272 | 14.33 | 15.03 | 7,412,559 | 3.17 | 0.20 | 0.70 | -16.80 | -16.38 | |||||||||||||||||||||||||||||
| VALIC Company I Emerging Economies Fund |
48,898 | 9.83 | 10.31 | 478,702 | 3.23 | 0.20 | 0.70 | -25.87 | -25.50 | |||||||||||||||||||||||||||||
| VALIC Company I Government Money Market I Fund |
— | 9.01 | 10.53 | — | 0.25 | 0.00 | 1.10 | -0.50 | 0.11 | |||||||||||||||||||||||||||||
| VALIC Company I International Equities Index Fund |
350,742 | 17.44 | 21.13 | 4,179,505 | 0.12 | 0.00 | 0.75 | -15.16 | -14.52 | |||||||||||||||||||||||||||||
| VALIC Company I International Value Fund |
19,276 | 9.96 | 11.28 | 192,143 | 1.64 | 0.25 | 0.70 | -11.56 | -11.16 | |||||||||||||||||||||||||||||
| VALIC Company I Mid Cap Index Fund |
503,843 | 28.74 | 52.63 | 15,504,083 | 1.26 | 0.00 | 1.10 | -14.30 | -13.35 | |||||||||||||||||||||||||||||
| VALIC Company I Mid Cap Value Fund |
13,105 | 20.15 | 21.14 | 213,136 | 0.32 | 0.20 | 0.70 | -9.12 | -8.66 | |||||||||||||||||||||||||||||
| VALIC Company I Nasdaq-100 Index Fund |
171,046 | 80.71 | 89.51 | 8,510,120 | 0.23 | 0.00 | 0.75 | -33.31 | -32.81 | |||||||||||||||||||||||||||||
| VALIC Company I Science & Technology Fund |
123,742 | 60.48 | 73.82 | 4,575,303 | 0.00 | 0.00 | 0.75 | -39.45 | -39.00 | |||||||||||||||||||||||||||||
| VALIC Company I Small Cap Index Fund |
351,834 | 39.63 | 42.82 | 8,625,061 | 0.75 | 0.00 | 0.75 | -21.26 | -20.66 | |||||||||||||||||||||||||||||
| VALIC Company I Stock Index Fund |
725,928 | 41.35 | 52.01 | 23,208,971 | 1.19 | 0.00 | 0.75 | -18.94 | -18.33 | |||||||||||||||||||||||||||||
| VALIC Company I U.S. Socially Responsible Fund |
8,296 | 25.57 | 26.82 | 170,170 | 0.64 | 0.20 | 0.70 | -17.70 | -17.28 | |||||||||||||||||||||||||||||
| VanEck VIP Emerging Markets Fund Initial Class |
4,639 | 28.31 | 131,322 | 0.25 | 0.50 | -24.75 | ||||||||||||||||||||||||||||||||
| VanEck VIP Global Resources Fund Initial Class |
7,870 | 36.31 | 285,719 | 1.86 | 0.50 | 7.85 | ||||||||||||||||||||||||||||||||
| Vanguard VIF High Yield Bond Portfolio |
275,240 | 17.82 | 27.48 | 5,505,556 | 4.74 | 0.00 | 1.10 | -10.35 | -9.36 | |||||||||||||||||||||||||||||
| Vanguard VIF Real Estate Index Portfolio |
544,691 | 19.42 | 34.48 | 11,891,488 | 1.82 | 0.00 | 1.10 | -27.10 | -26.30 | |||||||||||||||||||||||||||||
| December 31, 2021 | For the Year Ended December 31, 2021 | |||||||||||||||||||||||||||||||||||||
| Investment | Expense | Total | ||||||||||||||||||||||||||||||||||||
| Unit Value ($)(a)(f) | Net | Income | Ratio (%)(d)(f) | Return (%)(e)(f) | ||||||||||||||||||||||||||||||||||
| Sub-accounts | Units | Lowest | Highest | Assets ($)(b) | Ratio (%)(c) | Lowest | Highest | Lowest | Highest | |||||||||||||||||||||||||||||
| AB VPS Balanced Hedged Allocation Portfolio Class A |
9,297 | 24.21 | 225,112 | 0.49 | 0.50 | 13.16 | ||||||||||||||||||||||||||||||||
| AB VPS Intermediate Bond Portfolio Class A |
1,519 | 15.67 | 23,803 | 1.48 | 0.50 | -1.94 | ||||||||||||||||||||||||||||||||
| AB VPS Large Cap Growth Portfolio Class A |
504,202 | 49.44 | 81.23 | 41,375,489 | 0.00 | 0.10 | 0.50 | 28.33 | 28.84 | |||||||||||||||||||||||||||||
| AB VPS Relative Value Portfolio Class A |
19,151 | 99.86 | 1,912,380 | 0.85 | 0.50 | 27.52 | ||||||||||||||||||||||||||||||||
| AB VPS Small Cap Growth Portfolio Class A |
10,824 | 81.03 | 877,094 | 0.00 | 0.50 | 8.91 | ||||||||||||||||||||||||||||||||
| AB VPS Sustainable Global Thematic Growth Portfolio Class A |
48,510 | 22.92 | 54.70 | 1,979,292 | 0.00 | 0.10 | 0.50 | 22.26 | 22.75 | |||||||||||||||||||||||||||||
| Alger Capital Appreciation Portfolio Class I-2 |
317,031 | 50.75 | 91.90 | 15,262,542 | 0.00 | 0.00 | 1.10 | 17.82 | 19.13 | |||||||||||||||||||||||||||||
| Alger Mid Cap Growth Portfolio Class I-2 |
145,839 | 67.13 | 67.60 | 5,017,400 | 0.00 | 0.00 | 0.75 | 3.43 | 4.20 | |||||||||||||||||||||||||||||
| American Century VP Capital Appreciation Fund Class I |
7,801 | 53.21 | 415,078 | 0.00 | 0.10 | 11.04 | ||||||||||||||||||||||||||||||||
| American Century VP Disciplined Core Value Fund Class I |
5,493 | 37.20 | 204,322 | 1.12 | 0.10 | 23.53 | ||||||||||||||||||||||||||||||||
| American Century VP Value Fund Class I |
584,309 | 42.83 | 43.71 | 17,607,355 | 1.82 | 0.00 | 0.75 | 23.58 | 24.51 | |||||||||||||||||||||||||||||
| American Funds IS American High-Income Trust Class 2 |
111,292 | 14.53 | 14.95 | 1,488,284 | 4.68 | 0.20 | 0.70 | 7.66 | 8.20 | |||||||||||||||||||||||||||||
| American Funds IS Asset Allocation Fund Class 2 |
644,305 | 21.05 | 21.97 | 10,701,146 | 1.77 | 0.20 | 0.70 | 14.30 | 14.87 | |||||||||||||||||||||||||||||
| American Funds IS Global Growth Fund Class 2 |
158,913 | 29.53 | 30.83 | 3,474,984 | 0.35 | 0.20 | 0.70 | 15.61 | 16.19 | |||||||||||||||||||||||||||||
| American Funds IS Growth Fund Class 2 |
322,442 | 42.68 | 44.56 | 9,283,983 | 0.23 | 0.20 | 0.70 | 21.14 | 21.75 | |||||||||||||||||||||||||||||
| American Funds IS Growth-Income Fund Class 2 |
392,333 | 29.22 | 30.50 | 8,229,400 | 1.17 | 0.20 | 0.70 | 23.23 | 23.85 | |||||||||||||||||||||||||||||
| American Funds IS International Fund Class 2 |
166,122 | 16.04 | 16.68 | 2,243,005 | 2.57 | 0.20 | 0.70 | -2.18 | -1.69 | |||||||||||||||||||||||||||||
| BNY Mellon IP MidCap Stock Portfolio Initial Shares |
155,754 | 32.73 | 42.54 | 4,929,436 | 0.64 | 0.10 | 0.70 | 25.00 | 25.76 | |||||||||||||||||||||||||||||
| BNY Mellon Stock Index Fund, Inc. Initial Shares |
104,950 | 44.17 | 102.73 | 7,064,565 | 1.13 | 0.10 | 0.50 | 27.77 | 28.28 | |||||||||||||||||||||||||||||
| BNY Mellon VIF Opportunistic Small Cap Portfolio Initial Shares |
285,336 | 32.56 | 37.97 | 8,974,709 | 0.12 | 0.10 | 0.75 | 15.59 | 16.34 | |||||||||||||||||||||||||||||
| EQ Advisors Multimanager Aggressive Equity Portfolio Class IA |
5,507 | 146.27 | 805,447 | 0.00 | 0.75 | 19.60 | ||||||||||||||||||||||||||||||||
| EQ/Common Stock Index Portfolio Class IA |
16,047 | 165.72 | 2,659,345 | 0.62 | 0.75 | 24.00 | ||||||||||||||||||||||||||||||||
| EQ/Core Plus Bond Portfolio Class IA |
50 | 371.90 | 18,739 | 1.30 | 0.75 | -2.42 | ||||||||||||||||||||||||||||||||
| EQ/International Equity Index Portfolio Class IA |
337 | 503.16 | 169,636 | 2.58 | 0.75 | 10.12 | ||||||||||||||||||||||||||||||||
| EQ/Moderate Allocation Portfolio Class IA |
837 | 620.37 | 519,286 | 2.49 | 0.75 | 7.61 | ||||||||||||||||||||||||||||||||
| EQ/Money Market Portfolio Class IA |
102 | 178.36 | 18,185 | 0.00 | 0.75 | -0.56 | ||||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Growth Portfolio Initial Class |
12,949 | 581.04 | 7,523,870 | 1.40 | 0.75 | 13.11 | ||||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Portfolio Initial Class |
37,278 | 28.74 | 688.15 | 13,753,542 | 1.70 | 0.10 | 0.75 | 9.10 | 9.81 | |||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Portfolio Service Class 2 |
210,498 | 28.95 | 31.53 | 4,556,682 | 1.39 | 0.00 | 0.75 | 8.86 | 9.68 | |||||||||||||||||||||||||||||
| Fidelity VIP Contrafund Portfolio Initial Class |
381,703 | 66.93 | 168.81 | 60,822,109 | 0.06 | 0.10 | 0.75 | 26.88 | 27.71 | |||||||||||||||||||||||||||||
| Fidelity VIP Contrafund Portfolio Service Class 2 |
1,305,230 | 36.82 | 67.47 | 50,581,355 | 0.03 | 0.00 | 1.10 | 26.12 | 27.51 | |||||||||||||||||||||||||||||
| Fidelity VIP Equity-Income Portfolio Initial Class |
269,140 | 133.73 | 35,992,521 | 1.93 | 0.75 | 23.96 | ||||||||||||||||||||||||||||||||
| Fidelity VIP Equity-Income Portfolio Service Class 2 |
848,811 | 24.87 | 45.89 | 22,342,913 | 1.73 | 0.00 | 1.10 | 23.24 | 24.60 | |||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2020 Portfolio Service Class 2 |
17,963 | 22.38 | 33.24 | 407,680 | 0.85 | 0.00 | 0.45 | 8.77 | 9.26 | |||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2025 Portfolio Service Class 2 |
35,751 | 24.18 | 36.58 | 874,933 | 0.91 | 0.00 | 0.45 | 10.05 | 10.55 | |||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2030 Portfolio Service Class 2 |
146,780 | 22.84 | 39.42 | 3,703,943 | 0.89 | 0.00 | 1.10 | 10.84 | 12.07 | |||||||||||||||||||||||||||||
| Fidelity VIP Government Money Market Portfolio Initial Class |
180,001 | 11.81 | 167.85 | 3,915,883 | 0.01 | 0.10 | 0.75 | -0.74 | -0.09 | |||||||||||||||||||||||||||||
| Fidelity VIP Government Money Market Portfolio Service Class 2 |
69,064 | 9.78 | 10.21 | 705,825 | 0.02 | 0.20 | 0.70 | -0.69 | -0.19 | |||||||||||||||||||||||||||||
| Fidelity VIP Growth Portfolio Initial Class |
508,683 | 50.23 | 223.15 | 101,755,599 | 0.00 | 0.10 | 0.75 | 22.29 | 23.09 | |||||||||||||||||||||||||||||
| Fidelity VIP Growth Portfolio Service Class 2 |
762,029 | 59.39 | 82.49 | 36,521,246 | 0.00 | 0.00 | 0.75 | 21.98 | 22.90 | |||||||||||||||||||||||||||||
| Fidelity VIP High Income Portfolio Initial Class |
19,745 | 28.62 | 367.26 | 2,117,153 | 5.40 | 0.10 | 0.75 | 3.63 | 4.31 | |||||||||||||||||||||||||||||
| Fidelity VIP Index 500 Portfolio Initial Class |
367,292 | 143.42 | 52,678,748 | 1.26 | 0.75 | 27.62 | ||||||||||||||||||||||||||||||||
| Fidelity VIP Investment Grade Bond Portfolio Initial Class |
22,024 | 23.48 | 393.30 | 2,988,984 | 2.00 | 0.10 | 0.75 | -1.35 | -0.71 | |||||||||||||||||||||||||||||
| Fidelity VIP Mid Cap Portfolio Service Class 2 |
503,167 | 29.17 | 53.22 | 14,207,031 | 0.37 | 0.00 | 1.10 | 23.94 | 25.31 | |||||||||||||||||||||||||||||
| Fidelity VIP Overseas Portfolio Initial Class |
23,873 | 41.71 | 583.24 | 8,719,060 | 0.52 | 0.50 | 0.75 | 18.80 | 19.10 | |||||||||||||||||||||||||||||
| FTVIP Franklin Mutual Shares VIP Fund Class 2 |
360,868 | 18.77 | 31.46 | 7,030,159 | 3.03 | 0.00 | 1.10 | 17.86 | 19.17 | |||||||||||||||||||||||||||||
|
52 |
SEPARATE ACCOUNT VL-R
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 | |||||||||||||||||||||||||||||||
| FTVIP Franklin Small Cap Value VIP Fund Class 2 |
337,903 | 27.88 | 49.05 | 9,439,652 | 1.04 | 0.00 | 1.10 | 24.00 | 25.37 | |||||||||||||||||||||||||||||||
| FTVIP Franklin Small-Mid Cap Growth VIP Fund Class 2 |
956 | 41.68 | 43.13 | 40,566 | 0.00 | 0.25 | 0.50 | 9.46 | 9.74 | |||||||||||||||||||||||||||||||
| FTVIP Franklin U.S. Government Securities VIP Fund Class 2 |
155,868 | 13.55 | 15.96 | 2,049,517 | 2.62 | 0.10 | 0.75 | -2.56 | -1.92 | |||||||||||||||||||||||||||||||
| FTVIP Templeton Foreign VIP Fund Class 2 |
341,923 | 12.20 | 19.78 | 4,030,519 | 1.87 | 0.10 | 0.75 | 3.38 | 4.05 | |||||||||||||||||||||||||||||||
| Goldman Sachs VIT Strategic Growth Fund Institutional Shares |
116,124 | 50.51 | 53.33 | 6,088,036 | 0.00 | 0.10 | 0.50 | 21.32 | 21.80 | |||||||||||||||||||||||||||||||
| Invesco V.I. American Franchise Fund Series I |
21,731 | 39.66 | 40.64 | 874,894 | 0.00 | 0.10 | 0.50 | 11.37 | 11.81 | |||||||||||||||||||||||||||||||
| Invesco V.I. Conservative Balanced Fund Series I |
81,298 | 24.19 | 26.18 | 1,428,807 | 0.00 | 0.00 | 0.75 | 9.81 | 10.63 | |||||||||||||||||||||||||||||||
| Invesco V.I. Core Equity Fund Series I |
344,276 | 29.59 | 31.24 | 10,493,878 | 0.00 | 0.10 | 0.50 | 27.10 | 27.61 | |||||||||||||||||||||||||||||||
| Invesco V.I. EQV International Equity Fund Series 1 |
485,451 | 16.78 | 31.05 | 9,220,529 | 1.29 | 0.00 | 1.10 | 4.73 | 5.89 | |||||||||||||||||||||||||||||||
| Invesco V.I. Global Fund Series I |
347,509 | 30.52 | 55.52 | 11,328,958 | 0.00 | 0.00 | 1.10 | 14.23 | 15.49 | |||||||||||||||||||||||||||||||
| Invesco V.I. Global Real Estate Fund Series I |
48,116 | 14.72 | 28.92 | 812,207 | 0.00 | 0.00 | 0.70 | 24.83 | 25.71 | |||||||||||||||||||||||||||||||
| Invesco V.I. Global Strategic Income Fund Series I |
37 | 11.69 | 432 | 0.00 | 0.50 | -3.89 | ||||||||||||||||||||||||||||||||||
| Invesco V.I. Government Securities Fund Series I |
791 | 12.09 | 12.41 | 9,562 | 2.40 | 0.25 | 0.50 | -2.75 | -2.51 | |||||||||||||||||||||||||||||||
| Invesco V.I. Growth and Income Fund Series I |
459,197 | 41.16 | 42.80 | 12,416,948 | 1.71 | 0.00 | 0.75 | 27.55 | 28.51 | |||||||||||||||||||||||||||||||
| Invesco V.I. High Yield Fund Series I |
61,065 | 15.81 | 16.50 | 973,850 | 4.61 | 0.10 | 0.50 | 3.86 | 4.28 | |||||||||||||||||||||||||||||||
| Invesco V.I. Main Street Fund Series I |
22,515 | 40.98 | 922,702 | 0.72 | 0.10 | 27.44 | ||||||||||||||||||||||||||||||||||
| Janus Henderson Enterprise Portfolio Service Shares |
243,118 | 34.00 | 78.38 | 9,784,945 | 0.23 | 0.00 | 0.70 | 15.73 | 16.54 | |||||||||||||||||||||||||||||||
| Janus Henderson Forty Portfolio Service Shares |
53,879 | 42.40 | 82.44 | 2,088,956 | 0.00 | 0.00 | 0.70 | 21.75 | 22.60 | |||||||||||||||||||||||||||||||
| Janus Henderson Global Research Portfolio Service Shares |
155,609 | 20.47 | 27.89 | 4,203,154 | 0.37 | 0.10 | 0.70 | 16.97 | 17.68 | |||||||||||||||||||||||||||||||
| Janus Henderson Overseas Portfolio Service Shares |
577,271 | 11.29 | 13.11 | 7,288,523 | 1.04 | 0.00 | 1.10 | 12.05 | 13.29 | |||||||||||||||||||||||||||||||
| LVIP JPMorgan Core Bond Fund Standard Class |
343,790 | 11.96 | 16.73 | 4,056,521 | 1.94 | 0.00 | 0.70 | -2.04 | -1.35 | |||||||||||||||||||||||||||||||
| LVIP JPMorgan Mid Cap Value Fund Standard Class |
10,155 | 52.28 | 55.00 | 538,442 | 0.90 | 0.10 | 0.50 | 29.24 | 29.75 | |||||||||||||||||||||||||||||||
| LVIP JPMorgan Small Cap Core Fund Standard Class |
122,057 | 37.13 | 54.21 | 4,393,172 | 0.54 | 0.10 | 0.75 | 20.48 | 21.26 | |||||||||||||||||||||||||||||||
| LVIP JPMorgan U.S. Equity Fund Standard Class |
7,039 | 69.61 | 490,008 | 0.74 | 0.10 | 29.21 | ||||||||||||||||||||||||||||||||||
| MFS VIT Growth Series Initial Class |
376,527 | 58.04 | 76.09 | 42,533,322 | 0.00 | 0.10 | 0.75 | 22.61 | 23.41 | |||||||||||||||||||||||||||||||
| MFS VIT Investors Trust Series Initial Class |
9,344 | 451.39 | 4,217,568 | 0.62 | 0.75 | 25.87 | ||||||||||||||||||||||||||||||||||
| MFS VIT New Discovery Series Initial Class |
229,302 | 47.48 | 86.62 | 10,046,264 | 0.00 | 0.00 | 1.10 | 0.69 | 1.80 | |||||||||||||||||||||||||||||||
| MFS VIT Research Series Initial Class |
153,814 | 62.76 | 499.05 | 11,671,973 | 0.54 | 0.00 | 0.75 | 23.87 | 24.80 | |||||||||||||||||||||||||||||||
| MFS VIT Total Return Series Initial Class |
22,596 | 25.46 | 394.97 | 5,400,148 | 1.80 | 0.25 | 0.75 | 13.26 | 13.83 | |||||||||||||||||||||||||||||||
| MFS VIT Utilities Series Initial Class |
12,545 | 667.76 | 8,377,416 | 1.66 | 0.75 | 13.24 | ||||||||||||||||||||||||||||||||||
| MFS VIT II Core Equity Portfolio Initial Class |
436,617 | 25.63 | 58.81 | 16,387,313 | 0.43 | 0.10 | 0.75 | 24.38 | 25.19 | |||||||||||||||||||||||||||||||
| Morgan Stanley VIF Growth Portfolio Class I |
100,880 | 90.27 | 117.03 | 8,838,032 | 0.00 | 0.10 | 0.75 | -0.64 | 0.00 | |||||||||||||||||||||||||||||||
| Neuberger Berman AMT Mid Cap Growth Portfolio Class I |
261,753 | 61.08 | 66.60 | 9,798,663 | 0.00 | 0.00 | 0.75 | 12.15 | 12.99 | |||||||||||||||||||||||||||||||
| Neuberger Berman AMT Short Duration Bond Portfolio Class I |
3,383 | 14.01 | 47,408 | 2.64 | 0.10 | 0.64 | ||||||||||||||||||||||||||||||||||
| Neuberger Berman AMT Sustainable Equity Portfolio Class I |
25,139 | 15.96 | 55.98 | 550,125 | 0.39 | 0.00 | 0.50 | 22.86 | 23.48 | |||||||||||||||||||||||||||||||
| PIMCO CommodityRealReturn Strategy Portfolio Administrative Class |
88,218 | 10.68 | 22.01 | 804,925 | 4.45 | 0.00 | 1.10 | 31.88 | 33.34 | |||||||||||||||||||||||||||||||
| PIMCO Global Bond Opportunities Portfolio (Unhedged) Administrative Class |
48,888 | 10.82 | 17.34 | 555,168 | 4.96 | 0.00 | 0.70 | -4.83 | -4.16 | |||||||||||||||||||||||||||||||
| PIMCO Real Return Portfolio Administrative Class |
522,699 | 19.10 | 23.54 | 8,436,564 | 4.65 | 0.00 | 0.75 | 4.80 | 5.59 | |||||||||||||||||||||||||||||||
| PIMCO Short-Term Portfolio Administrative Class |
482,749 | 11.06 | 12.88 | 5,731,436 | 1.14 | 0.00 | 1.10 | -1.15 | -0.06 | |||||||||||||||||||||||||||||||
| PIMCO Total Return Portfolio Administrative Class |
904,727 | 15.64 | 18.77 | 14,260,854 | 1.79 | 0.00 | 1.10 | -2.35 | -1.27 | |||||||||||||||||||||||||||||||
| Pioneer Fund VCT Portfolio Class I |
76,616 | 41.64 | 48.33 | 3,126,271 | 0.32 | 0.10 | 0.70 | 27.09 | 27.85 | |||||||||||||||||||||||||||||||
| Pioneer Mid Cap Value VCT Portfolio Class I |
42,750 | 26.91 | 40.64 | 1,140,644 | 0.96 | 0.00 | 0.75 | 28.70 | 29.67 | |||||||||||||||||||||||||||||||
| Pioneer Select Mid Cap Growth VCT Portfolio Class I |
87,953 | 46.88 | 49.50 | 4,231,530 | 0.00 | 0.10 | 0.50 | 7.53 | 7.96 | |||||||||||||||||||||||||||||||
| Putnam VT Diversified Income Fund Class IB |
255,644 | 19.30 | 21.08 | 4,787,993 | 0.66 | 0.00 | 0.75 | -7.65 | -6.95 | |||||||||||||||||||||||||||||||
| Putnam VT International Value Fund Class IB |
319,635 | 11.02 | 12.62 | 3,929,342 | 2.03 | 0.10 | 1.10 | 13.68 | 14.82 | |||||||||||||||||||||||||||||||
| Putnam VT Large Cap Growth Fund Class IB |
13,532 | 9.69 | 9.81 | 131,598 | 0.00 | 0.25 | 0.50 | 22.04 | 22.35 | |||||||||||||||||||||||||||||||
| Putnam VT Large Cap Value Fund Class IB |
634,776 | 32.26 | 34.07 | 17,103,587 | 1.24 | 0.10 | 0.50 | 26.67 | 27.18 | |||||||||||||||||||||||||||||||
| Putnam VT Small Cap Value Fund Class IB |
7,491 | 30.15 | 48.97 | 236,855 | 0.79 | 0.00 | 0.50 | 39.20 | 39.90 | |||||||||||||||||||||||||||||||
| Putnam VT Sustainable Leaders Fund Class IB |
2,045 | 54.51 | 56.07 | 112,956 | 0.14 | 0.25 | 0.50 | 22.92 | 23.22 | |||||||||||||||||||||||||||||||
| SST SA Multi-Managed Mid Cap Value Portfolio Class 3 |
10,403 | 21.38 | 22.32 | 175,934 | 1.55 | 0.20 | 0.70 | 26.21 | 26.84 | |||||||||||||||||||||||||||||||
| SAST SA AB Growth Portfolio Class 1 |
200,658 | 54.88 | 55.20 | 11,005,298 | 0.00 | 0.10 | 0.25 | 28.48 | 28.67 | |||||||||||||||||||||||||||||||
| SAST SA DFA Ultra Short Bond Portfolio Class 1 |
119,414 | 11.67 | 11.74 | 1,399,859 | 0.05 | 0.10 | 0.25 | -0.77 | -0.62 | |||||||||||||||||||||||||||||||
| SAST SA Federated Hermes Corporate Bond Portfolio Class 1 |
7,543 | 34.37 | 34.57 | 259,736 | 3.31 | 0.10 | 0.25 | 0.35 | 0.50 | |||||||||||||||||||||||||||||||
| SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1 |
9,259 | 70.08 | 70.49 | 649,238 | 1.63 | 0.10 | 0.25 | 38.88 | 39.08 | |||||||||||||||||||||||||||||||
| SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1 |
43,122 | 65.12 | 65.50 | 2,812,476 | 1.89 | 0.10 | 0.25 | 29.54 | 29.74 | |||||||||||||||||||||||||||||||
| SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1 |
11,666 | 57.79 | 58.13 | 674,795 | 2.38 | 0.10 | 0.25 | 23.79 | 23.97 | |||||||||||||||||||||||||||||||
| SAST SA Goldman Sachs Global Bond Portfolio Class 1 |
9,777 | 19.86 | 19.98 | 187,290 | 2.53 | 0.10 | 0.25 | -7.54 | -7.41 | |||||||||||||||||||||||||||||||
| SAST SA Invesco Growth Opportunities Portfolio Class 1 |
7,559 | 25.03 | 25.17 | 189,200 | 0.00 | 0.10 | 0.25 | 7.06 | 7.22 | |||||||||||||||||||||||||||||||
| SAST SA Janus Focused Growth Portfolio Class 1 |
20,788 | 60.43 | 1,256,215 | 0.00 | 0.10 | 23.19 | ||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Diversified Balanced Portfolio Class 1 |
244,722 | 30.67 | 36.60 | 5,778,348 | 0.73 | 0.00 | 0.75 | 10.98 | 11.81 | |||||||||||||||||||||||||||||||
| SAST SA JPMorgan Emerging Markets Portfolio Class 1 |
11,204 | 35.96 | 36.18 | 403,334 | 1.79 | 0.10 | 0.25 | 0.94 | 1.09 | |||||||||||||||||||||||||||||||
| SAST SA JPMorgan Equity-Income Portfolio Class 1 |
104,534 | 35.12 | 35.33 | 3,574,304 | 1.90 | 0.10 | 0.25 | 25.50 | 25.69 | |||||||||||||||||||||||||||||||
| SAST SA JPMorgan Global Equities Portfolio Class 1 |
15,808 | 26.02 | 26.18 | 411,783 | 1.73 | 0.10 | 0.25 | 23.01 | 23.20 | |||||||||||||||||||||||||||||||
| SAST SA JPMorgan Large Cap Core Portfolio Class 1 |
12,002 | 43.77 | 44.03 | 525,781 | 0.67 | 0.10 | 0.25 | 27.46 | 27.65 | |||||||||||||||||||||||||||||||
| SAST SA JPMorgan MFS Core Bond Portfolio Class 1 |
1,852 | 27.54 | 27.70 | 51,077 | 2.55 | 0.10 | 0.25 | -1.17 | -1.02 | |||||||||||||||||||||||||||||||
| SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1 |
400,004 | 9.48 | 9.49 | 10,366,881 | 0.00 | 0.00 | 0.50 | -5.17 | -5.10 | |||||||||||||||||||||||||||||||
| SAST SA MFS Blue Chip Growth Portfolio Class 1 |
3,158 | 29.73 | 29.91 | 94,352 | 0.21 | 0.10 | 0.25 | 28.66 | 28.85 | |||||||||||||||||||||||||||||||
| SAST SA MFS Massachusetts Investors Trust Portfolio Class 1 |
16,334 | 43.22 | 43.47 | 706,139 | 0.67 | 0.10 | 0.25 | 26.59 | 26.78 | |||||||||||||||||||||||||||||||
|
53 |
SEPARATE ACCOUNT VL-R
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 1 |
23,875 | 38.67 | 38.90 | 925,247 | 1.53 | 0.10 | 0.25 | 13.75 | 13.92 | |||||||||||||||||||||||||||||||
| SAST SA Morgan Stanley International Equities Portfolio Class 1 |
26,268 | 15.99 | 16.09 | 420,672 | 1.27 | 0.10 | 0.25 | 4.08 | 4.23 | |||||||||||||||||||||||||||||||
| SAST SA PineBridge High-Yield Bond Portfolio Class 1 |
9,979 | 32.18 | 32.37 | 321,575 | 5.02 | 0.10 | 0.25 | 5.76 | 5.91 | |||||||||||||||||||||||||||||||
| SAST SA Putnam International Growth and Income Portfolio Class 1 |
27,911 | 19.08 | 19.19 | 533,403 | 2.12 | 0.10 | 0.25 | 14.70 | 14.87 | |||||||||||||||||||||||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 1 |
71,221 | 104.76 | 105.38 | 6,672,269 | 0.00 | 0.10 | 0.25 | 5.36 | 5.52 | |||||||||||||||||||||||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 3 |
34,753 | 41.77 | 43.61 | 973,758 | 0.00 | 0.20 | 0.70 | 4.64 | 5.16 | |||||||||||||||||||||||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 1 |
14,430 | 21.00 | 21.12 | 303,396 | 1.65 | 0.10 | 0.25 | -2.11 | -1.96 | |||||||||||||||||||||||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 3 |
61,015 | 11.29 | 11.78 | 685,118 | 0.00 | 0.20 | 0.70 | -2.79 | -2.30 | |||||||||||||||||||||||||||||||
| VALIC Company I Core Bond Fund |
34,956 | 12.86 | 13.42 | 433,025 | 0.00 | 0.20 | 0.70 | -1.45 | -0.96 | |||||||||||||||||||||||||||||||
| VALIC Company I Dynamic Allocation Fund |
568,912 | 17.22 | 17.98 | 8,778,372 | 1.67 | 0.20 | 0.70 | 9.43 | 9.97 | |||||||||||||||||||||||||||||||
| VALIC Company I Emerging Economies Fund |
44,873 | 13.26 | 13.84 | 589,975 | 1.50 | 0.20 | 0.70 | 0.49 | 0.99 | |||||||||||||||||||||||||||||||
| VALIC Company I Government Money Market I Fund |
1,109,965 | 9.05 | 10.52 | 11,117,630 | 0.01 | 0.00 | 1.10 | -1.08 | 0.01 | |||||||||||||||||||||||||||||||
| VALIC Company I International Equities Index Fund |
324,922 | 20.56 | 24.72 | 4,563,131 | 1.16 | 0.00 | 0.75 | 10.20 | 11.03 | |||||||||||||||||||||||||||||||
| VALIC Company I International Value Fund |
17,908 | 11.21 | 12.75 | 200,974 | 1.56 | 0.25 | 0.70 | 6.29 | 6.77 | |||||||||||||||||||||||||||||||
| VALIC Company I Mid Cap Index Fund |
529,204 | 33.54 | 60.75 | 18,750,814 | 1.08 | 0.00 | 1.10 | 22.96 | 24.32 | |||||||||||||||||||||||||||||||
| VALIC Company I Mid Cap Value Fund |
14,394 | 22.17 | 23.14 | 254,223 | 0.51 | 0.20 | 0.70 | 26.78 | 27.41 | |||||||||||||||||||||||||||||||
| VALIC Company I Nasdaq-100 Index Fund |
187,539 | 97.27 | 133.22 | 14,036,774 | 0.28 | 0.00 | 0.75 | 25.98 | 26.93 | |||||||||||||||||||||||||||||||
| VALIC Company I Science & Technology Fund |
122,614 | 76.48 | 121.02 | 7,698,602 | 0.04 | 0.00 | 0.75 | 11.18 | 12.01 | |||||||||||||||||||||||||||||||
| VALIC Company I Small Cap Index Fund |
349,870 | 49.96 | 54.38 | 10,914,547 | 0.83 | 0.00 | 0.75 | 13.58 | 14.44 | |||||||||||||||||||||||||||||||
| VALIC Company I Stock Index Fund |
770,168 | 51.02 | 63.68 | 30,143,155 | 1.46 | 0.00 | 0.75 | 27.39 | 28.35 | |||||||||||||||||||||||||||||||
| VALIC Company I U.S. Socially Responsible Fund |
7,378 | 31.06 | 32.43 | 186,815 | 0.93 | 0.20 | 0.70 | 26.21 | 26.84 | |||||||||||||||||||||||||||||||
| VanEck VIP Emerging Markets Fund Initial Class |
4,513 | 37.62 | 169,752 | 0.95 | 0.50 | -12.31 | ||||||||||||||||||||||||||||||||||
| VanEck VIP Global Resources Fund Initial Class |
7,030 | 33.66 | 236,649 | 0.45 | 0.50 | 18.33 | ||||||||||||||||||||||||||||||||||
| Vanguard VIF High Yield Bond Portfolio |
272,250 | 19.88 | 30.32 | 6,051,058 | 4.04 | 0.00 | 1.10 | 2.54 | 3.68 | |||||||||||||||||||||||||||||||
| Vanguard VIF Real Estate Index Portfolio |
576,958 | 26.64 | 46.78 | 17,236,311 | 1.97 | 0.00 | 1.10 | 38.67 | 40.21 | |||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||
| AB VPS Balanced Hedged Allocation Portfolio Class A |
9,346 | 21.40 | 199,980 | 2.19 | 0.50 | 8.87 | ||||||||||||||||||||||||||||||||||
| AB VPS Intermediate Bond Portfolio Class A |
1,602 | 15.98 | 25,595 | 3.16 | 0.50 | 5.43 | ||||||||||||||||||||||||||||||||||
| AB VPS Large Cap Growth Portfolio Class A |
507,220 | 38.37 | 63.29 | 32,392,495 | 0.00 | 0.10 | 0.50 | 34.81 | 35.35 | |||||||||||||||||||||||||||||||
| AB VPS Relative Value Portfolio Class A |
19,623 | 78.31 | 1,536,730 | 1.32 | 0.50 | 2.21 | ||||||||||||||||||||||||||||||||||
| AB VPS Small Cap Growth Portfolio Class A |
11,167 | 74.40 | 830,859 | 0.00 | 0.50 | 53.22 | ||||||||||||||||||||||||||||||||||
| AB VPS Sustainable Global Thematic Growth Portfolio Class A |
50,507 | 18.67 | 44.74 | 1,663,885 | 0.59 | 0.10 | 0.50 | 38.72 | 39.27 | |||||||||||||||||||||||||||||||
| Alger Capital Appreciation Portfolio Class I-2 |
297,914 | 43.07 | 77.14 | 12,356,372 | 0.00 | 0.00 | 1.10 | 40.20 | 41.75 | |||||||||||||||||||||||||||||||
| Alger Mid Cap Growth Portfolio Class I-2 |
161,088 | 64.87 | 64.91 | 5,510,915 | 0.00 | 0.00 | 0.75 | 63.40 | 64.63 | |||||||||||||||||||||||||||||||
| American Century VP Capital Appreciation Fund Class I |
8,130 | 47.92 | 389,574 | 0.00 | 0.10 | 42.31 | ||||||||||||||||||||||||||||||||||
| American Century VP Disciplined Core Value Fund Class I |
5,771 | 30.11 | 173,791 | 1.83 | 0.10 | 11.70 | ||||||||||||||||||||||||||||||||||
| American Century VP Value Fund Class I |
611,711 | 34.40 | 35.37 | 14,948,597 | 1.98 | 0.00 | 0.75 | 0.22 | 0.98 | |||||||||||||||||||||||||||||||
| American Funds IS American High-Income Trust Class 2 |
93,793 | 13.50 | 13.81 | 1,161,636 | 10.11 | 0.20 | 0.70 | 7.19 | 7.73 | |||||||||||||||||||||||||||||||
| American Funds IS Asset Allocation Fund Class 2 |
468,644 | 18.42 | 19.13 | 6,942,615 | 1.83 | 0.20 | 0.70 | 11.67 | 12.23 | |||||||||||||||||||||||||||||||
| American Funds IS Global Growth Fund Class 2 |
152,109 | 25.55 | 26.54 | 2,864,272 | 0.38 | 0.20 | 0.70 | 29.56 | 30.20 | |||||||||||||||||||||||||||||||
| American Funds IS Growth Fund Class 2 |
296,616 | 35.24 | 36.60 | 6,971,840 | 0.29 | 0.20 | 0.70 | 51.02 | 51.78 | |||||||||||||||||||||||||||||||
| American Funds IS Growth-Income Fund Class 2 |
374,071 | 23.71 | 24.63 | 6,357,731 | 1.41 | 0.20 | 0.70 | 12.75 | 13.32 | |||||||||||||||||||||||||||||||
| American Funds IS International Fund Class 2 |
155,226 | 16.40 | 16.97 | 2,131,305 | 0.71 | 0.20 | 0.70 | 13.18 | 13.75 | |||||||||||||||||||||||||||||||
| BNY Mellon IP MidCap Stock Portfolio Initial Shares |
165,719 | 26.03 | 38.84 | 4,155,515 | 0.70 | 0.10 | 0.75 | 7.30 | 8.00 | |||||||||||||||||||||||||||||||
| BNY Mellon Stock Index Fund, Inc. Initial Shares |
111,020 | 34.43 | 80.40 | 5,807,942 | 1.42 | 0.10 | 0.50 | 17.42 | 17.89 | |||||||||||||||||||||||||||||||
| BNY Mellon VIF Opportunistic Small Cap Portfolio Initial Shares |
308,719 | 27.99 | 29.68 | 8,316,650 | 0.55 | 0.10 | 0.75 | 19.00 | 19.77 | |||||||||||||||||||||||||||||||
| EQ Advisors Multimanager Aggressive Equity Portfolio Class IA |
8,125 | 122.30 | 993,674 | 0.00 | 0.75 | 37.78 | ||||||||||||||||||||||||||||||||||
| EQ/Common Stock Index Portfolio Class IA |
21,024 | 133.65 | 2,809,931 | 1.01 | 0.75 | 18.88 | ||||||||||||||||||||||||||||||||||
| EQ/Core Plus Bond Portfolio Class IA |
53 | 381.11 | 20,383 | 1.64 | 0.75 | 14.01 | ||||||||||||||||||||||||||||||||||
| EQ/International Equity Index Portfolio Class IA |
571 | 456.93 | 261,132 | 1.63 | 0.75 | 3.06 | ||||||||||||||||||||||||||||||||||
| EQ/Moderate Allocation Portfolio Class IA |
957 | 576.51 | 551,561 | 2.03 | 0.75 | 10.43 | ||||||||||||||||||||||||||||||||||
| EQ/Money Market Portfolio Class IA |
105 | 179.37 | 18,831 | 0.21 | 0.75 | -0.54 | ||||||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Growth Portfolio Initial Class |
14,061 | 513.69 | 7,222,827 | 1.04 | 0.75 | 16.39 | ||||||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Portfolio Initial Class |
37,082 | 26.17 | 630.76 | 12,040,995 | 1.42 | 0.10 | 0.75 | 14.01 | 14.76 | |||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Portfolio Service Class 2 |
229,493 | 26.60 | 28.75 | 4,515,366 | 1.22 | 0.00 | 0.75 | 13.68 | 14.54 | |||||||||||||||||||||||||||||||
| Fidelity VIP Contrafund Portfolio Initial Class |
409,646 | 52.41 | 133.05 | 51,476,464 | 0.24 | 0.10 | 0.75 | 29.59 | 30.44 | |||||||||||||||||||||||||||||||
| Fidelity VIP Contrafund Portfolio Service Class 2 |
1,327,214 | 29.20 | 52.91 | 40,690,884 | 0.07 | 0.00 | 1.10 | 28.81 | 30.23 | |||||||||||||||||||||||||||||||
| Fidelity VIP Equity-Income Portfolio Initial Class |
289,433 | 107.88 | 31,224,792 | 1.62 | 0.75 | 5.90 | ||||||||||||||||||||||||||||||||||
| Fidelity VIP Equity-Income Portfolio Service Class 2 |
846,780 | 20.18 | 36.83 | 17,930,083 | 1.47 | 0.00 | 1.10 | 5.28 | 6.44 | |||||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2020 Portfolio Service Class 2 |
18,324 | 20.57 | 30.42 | 381,192 | 0.93 | 0.00 | 0.45 | 14.21 | 14.72 | |||||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2025 Portfolio Service Class 2 |
31,513 | 21.97 | 33.09 | 699,934 | 0.84 | 0.00 | 0.45 | 15.16 | 15.68 | |||||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2030 Portfolio Service Class 2 |
146,485 | 20.61 | 35.17 | 3,309,069 | 0.92 | 0.00 | 1.10 | 15.37 | 16.64 | |||||||||||||||||||||||||||||||
| Fidelity VIP Government Money Market Portfolio Initial Class |
171,042 | 11.82 | 169.09 | 3,799,178 | 0.30 | 0.10 | 0.75 | -0.43 | 0.22 | |||||||||||||||||||||||||||||||
|
54 |
SEPARATE ACCOUNT VL-R
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 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Government Money Market Portfolio Service Class 2 |
134,978 | 9.85 | 10.23 | 1,381,631 | 0.20 | 0.20 | 0.70 | -0.46 | 0.04 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Growth Portfolio Initial Class |
553,386 | 40.81 | 182.47 | 90,854,058 | 0.07 | 0.10 | 0.75 | 42.82 | 43.75 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Growth Portfolio Service Class 2 |
799,737 | 48.69 | 67.12 | 31,349,047 | 0.04 | 0.00 | 0.75 | 42.48 | 43.55 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP High Income Portfolio Initial Class |
20,131 | 27.44 | 354.39 | 2,128,481 | 4.70 | 0.10 | 0.75 | 1.98 | 2.64 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Index 500 Portfolio Initial Class |
385,566 | 112.39 | 43,332,718 | 1.62 | 0.75 | 17.36 | ||||||||||||||||||||||||||||||||||||||
| Fidelity VIP Investment Grade Bond Portfolio Initial Class |
23,607 | 23.65 | 398.68 | 3,365,272 | 2.28 | 0.10 | 0.75 | 8.58 | 9.28 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Mid Cap Portfolio Service Class 2 |
532,984 | 23.54 | 42.47 | 12,117,996 | 0.36 | 0.00 | 1.10 | 16.58 | 17.87 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Overseas Portfolio Initial Class |
25,535 | 35.02 | 490.93 | 8,084,538 | 0.41 | 0.50 | 0.75 | 14.75 | 15.04 | |||||||||||||||||||||||||||||||||||
| FTVIP Franklin Mutual Shares VIP Fund Class 2 |
367,970 | 15.93 | 26.40 | 6,083,490 | 2.42 | 0.00 | 1.10 | -6.08 | -5.04 | |||||||||||||||||||||||||||||||||||
| FTVIP Franklin Small Cap Value VIP Fund Class 2 |
354,169 | 22.49 | 39.12 | 7,997,455 | 1.27 | 0.00 | 1.10 | 4.04 | 5.19 | |||||||||||||||||||||||||||||||||||
| FTVIP Franklin Small-Mid Cap Growth VIP Fund Class 2 |
1,353 | 38.08 | 51,520 | 0.00 | 0.50 | 54.32 | ||||||||||||||||||||||||||||||||||||||
| FTVIP Franklin U.S. Government Securities VIP Fund Class 2 |
204,914 | 13.82 | 16.38 | 2,762,837 | 3.95 | 0.10 | 0.75 | 3.06 | 3.73 | |||||||||||||||||||||||||||||||||||
| FTVIP Templeton Foreign VIP Fund Class 2 |
340,880 | 11.72 | 19.13 | 3,884,754 | 2.89 | 0.10 | 0.75 | -1.90 | -1.26 | |||||||||||||||||||||||||||||||||||
| Goldman Sachs VIT Strategic Growth Fund Institutional Shares |
123,199 | 41.63 | 43.24 | 5,303,755 | 0.09 | 0.20 | 0.50 | 39.81 | 40.22 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. American Franchise Fund Series I |
22,052 | 35.61 | 36.34 | 795,624 | 0.07 | 0.10 | 0.50 | 41.64 | 42.21 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. Conservative Balanced Fund Series I |
89,737 | 22.03 | 23.66 | 1,429,125 | 2.19 | 0.00 | 0.75 | 14.00 | 14.86 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. Core Equity Fund Series I |
364,666 | 23.28 | 24.48 | 8,641,820 | 1.24 | 0.10 | 0.50 | 13.28 | 13.74 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. EQV International Equity Fund Series 1 |
490,361 | 16.02 | 29.32 | 8,910,059 | 2.11 | 0.00 | 1.10 | 12.75 | 14.00 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. Global Fund Series I |
353,724 | 26.72 | 48.07 | 10,103,855 | 0.63 | 0.00 | 1.10 | 26.24 | 27.64 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. Global Real Estate Fund Series I |
45,942 | 11.80 | 23.00 | 624,203 | 4.83 | 0.00 | 0.70 | -12.93 | -12.32 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. Global Strategic Income Fund Series I |
39 | 12.16 | 479 | 5.04 | 0.50 | 2.89 | ||||||||||||||||||||||||||||||||||||||
| Invesco V.I. Government Securities Fund Series I |
816 | 12.43 | 10,139 | 2.43 | 0.50 | 5.74 | ||||||||||||||||||||||||||||||||||||||
| Invesco V.I. Growth and Income Fund Series I |
487,210 | 32.27 | 33.31 | 10,255,446 | 2.01 | 0.00 | 0.75 | 1.33 | 2.09 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. High Yield Fund Series I |
65,841 | 15.22 | 15.67 | 1,005,249 | 5.50 | 0.20 | 0.50 | 2.80 | 3.11 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. Main Street Fund Series I |
22,794 | 32.16 | 733,001 | 1.41 | 0.10 | 13.83 | ||||||||||||||||||||||||||||||||||||||
| Janus Henderson Enterprise Portfolio Service Shares |
231,136 | 67.26 | 68.00 | 8,518,410 | 0.00 | 0.00 | 0.75 | 18.29 | 19.18 | |||||||||||||||||||||||||||||||||||
| Janus Henderson Forty Portfolio Service Shares |
53,497 | 34.82 | 67.24 | 1,698,223 | 0.17 | 0.00 | 0.70 | 38.06 | 39.03 | |||||||||||||||||||||||||||||||||||
| Janus Henderson Global Research Portfolio Service Shares |
168,736 | 17.50 | 23.70 | 3,835,385 | 0.50 | 0.10 | 0.70 | 18.93 | 19.64 | |||||||||||||||||||||||||||||||||||
| Janus Henderson Overseas Portfolio Service Shares |
642,381 | 10.08 | 11.57 | 7,224,208 | 1.00 | 0.00 | 1.10 | 14.75 | 16.02 | |||||||||||||||||||||||||||||||||||
| LVIP JPMorgan Core Bond Fund Standard Class |
271,303 | 12.21 | 16.96 | 3,262,989 | 1.86 | 0.00 | 0.70 | 7.09 | 7.84 | |||||||||||||||||||||||||||||||||||
| LVIP JPMorgan Mid Cap Value Fund Standard Class |
11,850 | 40.45 | 42.39 | 482,175 | 1.46 | 0.10 | 0.50 | -0.13 | 0.27 | |||||||||||||||||||||||||||||||||||
| LVIP JPMorgan Small Cap Core Fund Standard Class |
126,120 | 30.23 | 45.00 | 3,748,836 | 0.79 | 0.20 | 0.75 | 12.84 | 13.46 | |||||||||||||||||||||||||||||||||||
| LVIP JPMorgan U.S. Equity Fund Standard Class |
7,188 | 53.87 | 387,243 | 0.75 | 0.10 | 25.14 | ||||||||||||||||||||||||||||||||||||||
| MFS VIT Growth Series Initial Class |
412,757 | 47.03 | 59.51 | 38,044,030 | 0.00 | 0.10 | 0.75 | 30.87 | 31.73 | |||||||||||||||||||||||||||||||||||
| MFS VIT Investors Trust Series Initial Class |
10,277 | 358.62 | 3,685,435 | 0.59 | 0.75 | 13.02 | ||||||||||||||||||||||||||||||||||||||
| MFS VIT New Discovery Series Initial Class |
254,191 | 47.16 | 85.08 | 11,221,056 | 0.00 | 0.00 | 1.10 | 44.29 | 45.89 | |||||||||||||||||||||||||||||||||||
| MFS VIT Research Series Initial Class |
162,314 | 43.37 | 50.29 | 10,263,625 | 0.67 | 0.00 | 0.75 | 15.72 | 16.59 | |||||||||||||||||||||||||||||||||||
| MFS VIT Total Return Series Initial Class |
25,370 | 21.67 | 348.72 | 5,106,241 | 2.13 | 0.50 | 0.75 | 8.99 | 9.27 | |||||||||||||||||||||||||||||||||||
| MFS VIT Utilities Series Initial Class |
13,944 | 589.69 | 8,222,528 | 2.29 | 0.75 | 5.11 | ||||||||||||||||||||||||||||||||||||||
| MFS VIT II Core Equity Portfolio Initial Class |
478,673 | 20.36 | 47.29 | 14,510,138 | 0.67 | 0.20 | 0.75 | 17.82 | 18.47 | |||||||||||||||||||||||||||||||||||
| Morgan Stanley VIF Growth Portfolio Class I |
113,144 | 90.27 | 111.19 | 9,920,974 | 0.00 | 0.10 | 0.75 | 115.69 | 117.09 | |||||||||||||||||||||||||||||||||||
| Neuberger Berman AMT Mid Cap Growth Portfolio Class I |
270,180 | 54.47 | 58.94 | 9,055,584 | 0.00 | 0.00 | 0.75 | 38.94 | 39.98 | |||||||||||||||||||||||||||||||||||
| Neuberger Berman AMT Short Duration Bond Portfolio Class I |
3,568 | 13.92 | 49,686 | 2.82 | 0.10 | 3.35 | ||||||||||||||||||||||||||||||||||||||
| Neuberger Berman AMT Sustainable Equity Portfolio Class I |
25,920 | 12.99 | 45.33 | 457,181 | 0.59 | 0.00 | 0.50 | 18.97 | 19.56 | |||||||||||||||||||||||||||||||||||
| PIMCO CommodityRealReturn Strategy Portfolio Administrative Class |
88,010 | 8.10 | 16.51 | 583,878 | 5.51 | 0.00 | 1.10 | 0.24 | 1.35 | |||||||||||||||||||||||||||||||||||
| PIMCO Global Bond Opportunities Portfolio (Unhedged) Administrative Class |
42,381 | 11.37 | 18.10 | 506,300 | 2.43 | 0.00 | 0.70 | 9.35 | 10.12 | |||||||||||||||||||||||||||||||||||
| PIMCO Real Return Portfolio Administrative Class |
569,630 | 18.09 | 22.46 | 8,849,841 | 1.48 | 0.00 | 0.75 | 10.88 | 11.71 | |||||||||||||||||||||||||||||||||||
| PIMCO Short-Term Portfolio Administrative Class |
452,081 | 11.19 | 12.89 | 5,434,342 | 1.23 | 0.00 | 1.10 | 1.12 | 2.24 | |||||||||||||||||||||||||||||||||||
| PIMCO Total Return Portfolio Administrative Class |
892,854 | 16.02 | 19.01 | 14,647,654 | 2.16 | 0.00 | 1.10 | 7.46 | 8.65 | |||||||||||||||||||||||||||||||||||
| Pioneer Fund VCT Portfolio Class I |
55,909 | 32.57 | 38.03 | 1,773,793 | 0.74 | 0.10 | 0.70 | 23.41 | 24.16 | |||||||||||||||||||||||||||||||||||
| Pioneer Mid Cap Value VCT Portfolio Class I |
44,058 | 20.91 | 31.34 | 907,496 | 1.06 | 0.00 | 0.75 | 1.37 | 2.14 | |||||||||||||||||||||||||||||||||||
| Pioneer Select Mid Cap Growth VCT Portfolio Class I |
97,252 | 43.60 | 45.85 | 4,315,429 | 0.00 | 0.10 | 0.50 | 38.48 | 39.03 | |||||||||||||||||||||||||||||||||||
| Putnam VT Diversified Income Fund Class IB |
273,752 | 20.74 | 22.82 | 5,552,581 | 7.28 | 0.00 | 0.75 | -1.64 | -0.90 | |||||||||||||||||||||||||||||||||||
| Putnam VT International Value Fund Class IB |
323,916 | 9.69 | 10.99 | 3,470,346 | 2.15 | 0.10 | 1.10 | 2.80 | 3.84 | |||||||||||||||||||||||||||||||||||
| Putnam VT Large Cap Growth Fund Class IB |
41,380 | 7.94 | 328,451 | 0.04 | 0.50 | 38.02 | ||||||||||||||||||||||||||||||||||||||
| Putnam VT Large Cap Value Fund Class IB |
676,476 | 25.47 | 26.79 | 14,265,927 | 1.53 | 0.10 | 0.50 | 5.28 | 5.70 | |||||||||||||||||||||||||||||||||||
| Putnam VT Small Cap Value Fund Class IB |
8,070 | 21.66 | 35.01 | 180,270 | 0.90 | 0.00 | 0.50 | 3.44 | 3.96 | |||||||||||||||||||||||||||||||||||
| Putnam VT Sustainable Leaders Fund Class IB |
2,077 | 44.35 | 45.50 | 92,797 | 0.32 | 0.25 | 0.50 | 28.10 | 28.42 | |||||||||||||||||||||||||||||||||||
| SST SA Multi-Managed Mid Cap Value Portfolio Class 3 |
10,789 | 16.94 | 17.60 | 143,819 | 0.00 | 0.20 | 0.70 | 4.71 | 5.23 | |||||||||||||||||||||||||||||||||||
| SAST SA AB Growth Portfolio Class 1 |
213,911 | 42.72 | 42.90 | 9,128,125 | 0.00 | 0.10 | 0.25 | 35.28 | 35.48 | |||||||||||||||||||||||||||||||||||
| SAST SA DFA Ultra Short Bond Portfolio Class 1 |
122,238 | 11.76 | 11.81 | 1,442,320 | 2.35 | 0.10 | 0.25 | -0.04 | 0.11 | |||||||||||||||||||||||||||||||||||
| SAST SA Federated Hermes Corporate Bond Portfolio Class 1 |
6,883 | 34.25 | 34.40 | 235,918 | 2.97 | 0.10 | 0.25 | 8.75 | 8.91 | |||||||||||||||||||||||||||||||||||
| SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1 |
7,555 | 50.46 | 50.68 | 381,462 | 1.83 | 0.10 | 0.25 | -1.35 | -1.20 | |||||||||||||||||||||||||||||||||||
| SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1 |
46,357 | 50.27 | 50.49 | 2,332,881 | 1.83 | 0.10 | 0.25 | -1.52 | -1.37 | |||||||||||||||||||||||||||||||||||
| SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1 |
11,805 | 46.68 | 46.89 | 551,489 | 2.19 | 0.10 | 0.25 | 7.24 | 7.40 | |||||||||||||||||||||||||||||||||||
| SAST SA Goldman Sachs Global Bond Portfolio Class 1 |
9,479 | 21.48 | 21.58 | 196,046 | 0.45 | 0.10 | 0.25 | 11.56 | 11.73 | |||||||||||||||||||||||||||||||||||
| SAST SA Invesco Growth Opportunities Portfolio Class 1 |
7,682 | 23.38 | 23.48 | 179,604 | 0.00 | 0.10 | 0.25 | 55.44 | 55.67 | |||||||||||||||||||||||||||||||||||
| SAST SA Janus Focused Growth Portfolio Class 1 |
24,927 | 49.05 | 1,222,773 | 0.07 | 0.10 | 38.86 | ||||||||||||||||||||||||||||||||||||||
|
55 |
SEPARATE ACCOUNT VL-R
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 1 |
225,228 | 27.64 | 32.74 | 4,818,696 | 2.07 | 0.00 | 0.75 | 13.48 | 14.34 | |||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Emerging Markets Portfolio Class 1 |
11,756 | 35.63 | 35.79 | 419,144 | 1.46 | 0.10 | 0.25 | 16.11 | 16.29 | |||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Equity-Income Portfolio Class 1 |
109,251 | 27.99 | 28.11 | 2,974,267 | 1.92 | 0.10 | 0.25 | 2.96 | 3.11 | |||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Global Equities Portfolio Class 1 |
16,830 | 21.15 | 21.25 | 356,296 | 1.22 | 0.10 | 0.25 | 9.49 | 9.66 | |||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Large Cap Core Portfolio Class 1 |
12,339 | 34.34 | 34.49 | 424,042 | 0.78 | 0.10 | 0.25 | 13.10 | 13.27 | |||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan MFS Core Bond Portfolio Class 1 |
1,880 | 27.86 | 27.98 | 52,427 | 3.42 | 0.10 | 0.25 | 8.10 | 8.27 | |||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1 |
120,821 | 51.66 | 51.89 | 4,937,756 | 0.16 | 0.10 | 0.25 | 48.17 | 48.39 | |||||||||||||||||||||||||||||||||||
| SAST SA MFS Blue Chip Growth Portfolio Class 1 |
3,389 | 23.11 | 23.21 | 78,598 | 0.58 | 0.10 | 0.25 | 30.36 | 30.55 | |||||||||||||||||||||||||||||||||||
| SAST SA MFS Massachusetts Investors Trust Portfolio Class 1 |
18,233 | 34.14 | 34.29 | 622,869 | 0.64 | 0.10 | 0.25 | 14.05 | 14.22 | |||||||||||||||||||||||||||||||||||
| SAST SA MFS Total Return Portfolio Class 1 |
24,273 | 34.00 | 34.15 | 826,502 | 1.89 | 0.10 | 0.25 | 9.33 | 9.49 | |||||||||||||||||||||||||||||||||||
| SAST SA Morgan Stanley International Equities Portfolio Class 1 |
25,729 | 15.37 | 15.43 | 395,720 | 1.49 | 0.10 | 0.25 | 11.22 | 11.39 | |||||||||||||||||||||||||||||||||||
| SAST SA PineBridge High-Yield Bond Portfolio Class 1 |
10,235 | 30.43 | 30.56 | 311,767 | 5.81 | 0.10 | 0.25 | 7.80 | 7.96 | |||||||||||||||||||||||||||||||||||
| SAST SA Putnam International Growth and Income Portfolio Class 1 |
28,163 | 16.64 | 16.71 | 469,063 | 2.07 | 0.10 | 0.25 | 3.49 | 3.64 | |||||||||||||||||||||||||||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 1 |
70,945 | 99.42 | 99.86 | 6,272,205 | 0.00 | 0.10 | 0.25 | 64.12 | 64.37 | |||||||||||||||||||||||||||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 3 |
33,593 | 39.92 | 41.47 | 927,206 | 0.00 | 0.20 | 0.70 | 62.97 | 63.79 | |||||||||||||||||||||||||||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 1 |
11,468 | 21.45 | 21.54 | 245,993 | 2.08 | 0.10 | 0.25 | 6.84 | 7.00 | |||||||||||||||||||||||||||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 3 |
47,327 | 11.61 | 12.06 | 544,623 | 2.48 | 0.20 | 0.70 | 6.13 | 6.66 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Dynamic Allocation Fund |
512,661 | 15.74 | 16.35 | 7,202,276 | 1.89 | 0.20 | 0.70 | 10.31 | 10.86 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Emerging Economies Fund |
34,192 | 13.19 | 13.70 | 445,724 | 1.60 | 0.20 | 0.70 | 14.67 | 15.24 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Government Money Market I Fund |
1,263,613 | 9.15 | 10.51 | 12,677,171 | 0.17 | 0.00 | 1.10 | -0.88 | 0.22 | |||||||||||||||||||||||||||||||||||
| VALIC Company I International Equities Index Fund |
279,915 | 18.65 | 22.26 | 3,541,441 | 2.43 | 0.00 | 0.75 | 6.58 | 7.38 | |||||||||||||||||||||||||||||||||||
| VALIC Company I International Value Fund |
16,176 | 10.50 | 12.00 | 170,050 | 1.77 | 0.25 | 0.70 | 4.21 | 4.68 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Mid Cap Index Fund |
551,970 | 27.28 | 48.86 | 16,131,614 | 1.27 | 0.00 | 1.10 | 12.06 | 13.30 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Mid Cap Value Fund |
10,102 | 17.48 | 18.16 | 146,944 | 0.77 | 0.20 | 0.70 | 2.92 | 3.43 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Nasdaq-100 Index Fund |
185,559 | 69.02 | 77.21 | 11,316,911 | 0.67 | 0.00 | 0.75 | 46.84 | 47.94 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Science & Technology Fund |
131,394 | 68.79 | 108.04 | 7,683,701 | 0.00 | 0.00 | 0.75 | 55.65 | 56.82 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Small Cap Index Fund |
312,262 | 43.65 | 47.87 | 8,605,861 | 1.39 | 0.00 | 0.75 | 18.59 | 19.48 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Stock Index Fund |
815,306 | 40.05 | 49.62 | 25,095,341 | 1.75 | 0.00 | 0.75 | 17.11 | 17.99 | |||||||||||||||||||||||||||||||||||
| VALIC Company I U.S. Socially Responsible Fund |
6,927 | 24.61 | 25.57 | 138,183 | 1.15 | 0.20 | 0.70 | 15.04 | 15.62 | |||||||||||||||||||||||||||||||||||
| VanEck VIP Emerging Markets Fund Initial Class |
4,674 | 42.90 | 200,519 | 1.83 | 0.50 | 16.67 | ||||||||||||||||||||||||||||||||||||||
| VanEck VIP Global Resources Fund Initial Class |
7,350 | 28.45 | 209,091 | 0.88 | 0.50 | 18.52 | ||||||||||||||||||||||||||||||||||||||
| Vanguard VIF High Yield Bond Portfolio |
257,078 | 19.39 | 29.25 | 5,596,270 | 5.41 | 0.00 | 1.10 | 4.52 | 5.67 | |||||||||||||||||||||||||||||||||||
| Vanguard VIF Real Estate Index Portfolio |
586,643 | 19.21 | 33.36 | 12,544,401 | 2.41 | 0.00 | 1.10 | -5.89 | -4.85 | |||||||||||||||||||||||||||||||||||
| December 31, 2019 | For the Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||
| AB VPS Balanced Hedged Allocation Portfolio Class A |
9,135 | 19.65 | 179,548 | 0.00 | 0.50 | 17.94 | ||||||||||||||||||||||||||||||||||||||
| AB VPS Intermediate Bond Portfolio Class A |
1,732 | 15.15 | 26,241 | 0.00 | 0.50 | 7.66 | ||||||||||||||||||||||||||||||||||||||
| AB VPS Large Cap Growth Portfolio Class A |
513,128 | 28.35 | 46.95 | 24,275,974 | 0.00 | 0.10 | 0.50 | 34.02 | 34.56 | |||||||||||||||||||||||||||||||||||
| AB VPS Relative Value Portfolio Class A |
23,150 | 76.62 | 1,773,682 | 0.00 | 0.50 | 23.30 | ||||||||||||||||||||||||||||||||||||||
| AB VPS Small Cap Growth Portfolio Class A |
11,654 | 48.56 | 565,922 | 0.00 | 0.50 | 35.72 | ||||||||||||||||||||||||||||||||||||||
| AB VPS Sustainable Global Thematic Growth Portfolio Class A |
54,375 | 13.41 | 32.25 | 1,308,315 | 0.00 | 0.10 | 0.50 | 29.51 | 30.03 | |||||||||||||||||||||||||||||||||||
| Alger Capital Appreciation Portfolio Class I-2 |
291,367 | 30.72 | 54.42 | 9,351,752 | 0.00 | 0.00 | 1.10 | 32.12 | 33.58 | |||||||||||||||||||||||||||||||||||
| Alger Mid Cap Growth Portfolio Class I-2 |
164,124 | 39.41 | 39.72 | 3,437,812 | 0.00 | 0.00 | 0.75 | 29.28 | 30.26 | |||||||||||||||||||||||||||||||||||
| American Century VP Capital Appreciation Fund Class I |
8,289 | 33.67 | 279,113 | 0.00 | 0.10 | 35.43 | ||||||||||||||||||||||||||||||||||||||
| American Century VP Disciplined Core Value Fund Class I |
5,973 | 26.96 | 161,024 | 0.44 | 0.10 | 23.83 | ||||||||||||||||||||||||||||||||||||||
| American Century VP Value Fund Class I |
652,422 | 34.06 | 35.29 | 16,105,554 | 2.13 | 0.00 | 0.75 | 26.08 | 27.03 | |||||||||||||||||||||||||||||||||||
| American Funds IS American High-Income Trust Class 2 |
49,880 | 12.59 | 12.82 | 584,058 | 7.19 | 0.20 | 0.70 | 11.77 | 12.33 | |||||||||||||||||||||||||||||||||||
| American Funds IS Asset Allocation Fund Class 2 |
259,425 | 16.49 | 17.04 | 3,594,184 | 2.13 | 0.20 | 0.70 | 20.39 | 20.99 | |||||||||||||||||||||||||||||||||||
| American Funds IS Global Growth Fund Class 2 |
78,701 | 19.72 | 20.38 | 1,222,981 | 1.24 | 0.20 | 0.70 | 34.33 | 35.01 | |||||||||||||||||||||||||||||||||||
| American Funds IS Growth Fund Class 2 |
226,545 | 23.33 | 24.12 | 3,701,516 | 0.87 | 0.20 | 0.70 | 29.86 | 30.51 | |||||||||||||||||||||||||||||||||||
| American Funds IS Growth-Income Fund Class 2 |
254,489 | 21.03 | 21.73 | 3,966,295 | 1.88 | 0.20 | 0.70 | 25.26 | 25.88 | |||||||||||||||||||||||||||||||||||
| American Funds IS International Fund Class 2 |
77,071 | 14.49 | 14.92 | 946,867 | 1.71 | 0.20 | 0.70 | 22.03 | 22.64 | |||||||||||||||||||||||||||||||||||
| BNY Mellon IP MidCap Stock Portfolio Initial Shares |
183,177 | 23.82 | 36.20 | 4,266,195 | 0.67 | 0.20 | 0.75 | 19.28 | 19.94 | |||||||||||||||||||||||||||||||||||
| BNY Mellon Stock Index Fund, Inc. Initial Shares |
112,604 | 29.20 | 68.47 | 5,123,079 | 0.41 | 0.10 | 0.50 | 30.00 | 30.52 | |||||||||||||||||||||||||||||||||||
| BNY Mellon VIF Opportunistic Small Cap Portfolio Initial Shares |
327,113 | 23.10 | 24.95 | 7,354,635 | 0.00 | 0.20 | 0.75 | 20.87 | 21.53 | |||||||||||||||||||||||||||||||||||
| EQ Advisors Multimanager Aggressive Equity Portfolio Class IA |
8,662 | 88.76 | 768,854 | 0.71 | 0.75 | 32.35 | ||||||||||||||||||||||||||||||||||||||
| EQ/Common Stock Index Portfolio Class IA |
22,984 | 112.43 | 2,584,070 | 1.34 | 0.75 | 29.26 | ||||||||||||||||||||||||||||||||||||||
| EQ/Core Plus Bond Portfolio Class IA |
88 | 334.29 | 29,347 | 2.08 | 0.75 | 6.11 | ||||||||||||||||||||||||||||||||||||||
| EQ/International Equity Index Portfolio Class IA |
651 | 443.38 | 288,461 | 2.65 | 0.75 | 21.23 | ||||||||||||||||||||||||||||||||||||||
| EQ/Moderate Allocation Portfolio Class IA |
1,067 | 522.06 | 556,912 | 1.56 | 0.75 | 14.67 | ||||||||||||||||||||||||||||||||||||||
| EQ/Money Market Portfolio Class IA |
111 | 180.35 | 20,108 | 0.08 | 0.75 | 0.76 | ||||||||||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Growth Portfolio Initial Class |
14,985 | 441.36 | 6,613,810 | 1.48 | 0.75 | 21.91 | ||||||||||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Portfolio Initial Class |
41,230 | 22.81 | 553.24 | 11,362,509 | 1.71 | 0.10 | 0.75 | 17.37 | 18.13 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Asset Manager Portfolio Service Class 2 |
247,336 | 23.40 | 25.10 | 4,263,300 | 1.62 | 0.00 | 0.75 | 17.13 | 18.01 | |||||||||||||||||||||||||||||||||||
|
56 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| December 31, 2019 | For the Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
| Unit Value ($)(a)(f) | Net | Investment Income |
Expense Ratio (%)(d)(f) |
Total Return (%)(e)(f) |
||||||||||||||||||||||||||||||||||||||||
| Sub-accounts | Units | Lowest | Highest | Assets ($)(b) | Ratio (%)(c) | Lowest | Highest | Lowest | Highest | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Contrafund Portfolio Initial Class |
440,562 | 40.18 | 102.67 | 42,751,380 | 0.34 | 0.10 | 0.75 | 30.60 | 31.45 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Contrafund Portfolio Service Class 2 |
1,384,642 | 22.67 | 40.63 | 33,661,127 | 0.22 | 0.00 | 1.10 | 29.84 | 31.27 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Equity-Income Portfolio Initial Class |
313,223 | 101.87 | 31,909,561 | 1.52 | 0.75 | 26.49 | ||||||||||||||||||||||||||||||||||||||
| Fidelity VIP Equity-Income Portfolio Service Class 2 |
882,628 | 19.17 | 34.60 | 18,088,082 | 1.86 | 0.00 | 1.10 | 25.72 | 27.11 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2020 Portfolio Service Class 2 |
21,469 | 18.01 | 26.52 | 390,288 | 1.79 | 0.00 | 0.45 | 19.34 | 19.88 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2025 Portfolio Service Class 2 |
41,219 | 18.88 | 28.60 | 791,771 | 1.99 | 0.00 | 0.70 | 20.66 | 21.51 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Freedom 2030 Portfolio Service Class 2 |
155,511 | 17.86 | 30.16 | 3,031,071 | 1.85 | 0.00 | 1.10 | 22.75 | 24.11 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Government Money Market Portfolio Initial Class |
134,695 | 11.79 | 169.82 | 3,236,128 | 0.13 | 0.10 | 0.75 | 1.24 | 1.90 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Government Money Market Portfolio Service Class 2 |
181,390 | 9.90 | 10.23 | 1,863,271 | 0.69 | 0.20 | 0.70 | 1.04 | 1.55 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Growth Portfolio Initial Class |
598,554 | 28.39 | 127.77 | 69,113,633 | 0.16 | 0.10 | 0.75 | 33.31 | 34.18 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Growth Portfolio Service Class 2 |
786,010 | 34.17 | 46.76 | 22,218,119 | 0.06 | 0.00 | 0.75 | 32.98 | 33.98 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP High Income Portfolio Initial Class |
21,285 | 26.74 | 347.52 | 2,291,072 | 4.21 | 0.10 | 0.75 | 14.25 | 14.99 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Index 500 Portfolio Initial Class |
414,896 | 95.77 | 39,733,040 | 1.38 | 0.75 | 30.37 | ||||||||||||||||||||||||||||||||||||||
| Fidelity VIP Investment Grade Bond Portfolio Initial Class |
25,150 | 21.64 | 367.19 | 3,004,195 | 2.27 | 0.10 | 0.75 | 8.85 | 9.56 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Mid Cap Portfolio Service Class 2 |
444,262 | 20.19 | 36.03 | 9,728,732 | 0.70 | 0.00 | 1.10 | 21.82 | 23.17 | |||||||||||||||||||||||||||||||||||
| Fidelity VIP Overseas Portfolio Initial Class |
26,858 | 30.45 | 427.82 | 7,528,776 | 1.61 | 0.50 | 0.75 | 26.81 | 27.13 | |||||||||||||||||||||||||||||||||||
| FTVIP Franklin Mutual Shares VIP Fund Class 2 |
387,388 | 16.96 | 27.80 | 6,990,565 | 1.89 | 0.00 | 1.10 | 21.23 | 22.57 | |||||||||||||||||||||||||||||||||||
| FTVIP Franklin Small Cap Value VIP Fund Class 2 |
340,926 | 21.61 | 37.19 | 7,866,199 | 1.05 | 0.00 | 1.10 | 24.97 | 26.35 | |||||||||||||||||||||||||||||||||||
| FTVIP Franklin Small-Mid Cap Growth VIP Fund Class 2 |
1,498 | 24.68 | 36,954 | 0.00 | 0.50 | 30.78 | ||||||||||||||||||||||||||||||||||||||
| FTVIP Franklin U.S. Government Securities VIP Fund Class 2 |
117,941 | 13.17 | 15.89 | 1,573,882 | 2.73 | 0.20 | 0.75 | 4.44 | 5.02 | |||||||||||||||||||||||||||||||||||
| FTVIP Templeton Foreign VIP Fund Class 2 |
380,450 | 11.73 | 19.50 | 4,409,037 | 1.72 | 0.20 | 0.75 | 11.69 | 12.30 | |||||||||||||||||||||||||||||||||||
| Goldman Sachs VIT Strategic Growth Fund Institutional Shares |
130,777 | 29.78 | 30.83 | 4,016,873 | 0.30 | 0.20 | 0.50 | 34.85 | 35.26 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. American Franchise Fund Series I |
24,603 | 25.14 | 25.56 | 625,477 | 0.00 | 0.10 | 0.50 | 36.07 | 36.62 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. Conservative Balanced Fund Series I |
92,036 | 19.32 | 20.60 | 1,283,827 | 2.33 | 0.00 | 0.75 | 16.64 | 17.51 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. Core Equity Fund Series I |
393,150 | 20.55 | 21.28 | 8,163,616 | 0.96 | 0.20 | 0.50 | 28.32 | 28.71 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. EQV International Equity Fund Series 1 |
520,538 | 14.21 | 25.72 | 8,415,497 | 1.54 | 0.00 | 1.10 | 27.17 | 28.57 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. Global Fund Series I |
364,965 | 21.16 | 37.66 | 8,481,067 | 0.87 | 0.00 | 1.10 | 30.35 | 31.79 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. Global Real Estate Fund Series I |
35,927 | 13.55 | 26.24 | 593,951 | 4.77 | 0.00 | 0.70 | 22.14 | 23.00 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. Global Strategic Income Fund Series I |
50 | 11.82 | 593 | 5.46 | 0.50 | 10.25 | ||||||||||||||||||||||||||||||||||||||
| Invesco V.I. Government Securities Fund Series I |
879 | 11.75 | 10,327 | 2.33 | 0.50 | 5.54 | ||||||||||||||||||||||||||||||||||||||
| Invesco V.I. Growth and Income Fund Series I |
468,695 | 31.84 | 32.62 | 10,106,364 | 1.86 | 0.00 | 0.75 | 24.26 | 25.19 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. High Yield Fund Series I |
69,930 | 14.81 | 15.20 | 1,038,324 | 4.23 | 0.20 | 0.50 | 12.94 | 13.28 | |||||||||||||||||||||||||||||||||||
| Invesco V.I. Main Street Fund Series I |
23,214 | 28.25 | 655,807 | 0.00 | 0.10 | 31.95 | ||||||||||||||||||||||||||||||||||||||
| Janus Henderson Enterprise Portfolio Service Shares |
260,287 | 56.43 | 57.48 | 8,265,729 | 0.05 | 0.00 | 0.75 | 34.15 | 35.16 | |||||||||||||||||||||||||||||||||||
| Janus Henderson Forty Portfolio Service Shares |
30,158 | 25.22 | 48.36 | 881,536 | 0.02 | 0.00 | 0.70 | 35.90 | 36.85 | |||||||||||||||||||||||||||||||||||
| Janus Henderson Global Research Portfolio Service Shares |
172,281 | 19.58 | 22.34 | 3,288,452 | 0.86 | 0.20 | 0.75 | 27.75 | 28.46 | |||||||||||||||||||||||||||||||||||
| Janus Henderson Overseas Portfolio Service Shares |
738,332 | 8.78 | 9.98 | 7,210,325 | 1.83 | 0.00 | 1.10 | 25.32 | 26.71 | |||||||||||||||||||||||||||||||||||
| LVIP JPMorgan Core Bond Fund Standard Class |
166,374 | 11.40 | 15.73 | 1,919,775 | 2.42 | 0.00 | 0.70 | 7.42 | 8.18 | |||||||||||||||||||||||||||||||||||
| LVIP JPMorgan Mid Cap Value Fund Standard Class |
18,033 | 39.44 | 41.82 | 735,488 | 1.59 | 0.20 | 0.75 | 25.81 | 26.51 | |||||||||||||||||||||||||||||||||||
| LVIP JPMorgan Small Cap Core Fund Standard Class |
134,603 | 26.65 | 39.88 | 3,528,388 | 0.41 | 0.20 | 0.75 | 23.65 | 24.33 | |||||||||||||||||||||||||||||||||||
| LVIP JPMorgan U.S. Equity Fund Standard Class |
8,096 | 43.05 | 348,551 | 0.00 | 0.10 | 31.62 | ||||||||||||||||||||||||||||||||||||||
| MFS VIT Growth Series Initial Class |
448,318 | 35.29 | 45.47 | 31,104,500 | 0.00 | 0.20 | 0.75 | 37.12 | 37.87 | |||||||||||||||||||||||||||||||||||
| MFS VIT Investors Trust Series Initial Class |
10,855 | 317.32 | 3,444,515 | 0.00 | 0.75 | 30.60 | ||||||||||||||||||||||||||||||||||||||
| MFS VIT New Discovery Series Initial Class |
218,357 | 32.68 | 58.32 | 6,929,746 | 0.00 | 0.00 | 1.10 | 40.15 | 41.70 | |||||||||||||||||||||||||||||||||||
| MFS VIT Research Series Initial Class |
163,953 | 37.48 | 43.13 | 9,550,685 | 0.44 | 0.00 | 0.75 | 31.95 | 32.95 | |||||||||||||||||||||||||||||||||||
| MFS VIT Total Return Series Initial Class |
27,592 | 19.83 | 319.95 | 5,026,339 | 0.21 | 0.50 | 0.75 | 19.48 | 19.78 | |||||||||||||||||||||||||||||||||||
| MFS VIT Utilities Series Initial Class |
15,123 | 561.02 | 8,484,108 | 0.00 | 0.75 | 24.13 | ||||||||||||||||||||||||||||||||||||||
| MFS VIT II Core Equity Portfolio Initial Class |
502,755 | 16.74 | 17.18 | 12,971,471 | 0.45 | 0.20 | 0.75 | 32.20 | 32.93 | |||||||||||||||||||||||||||||||||||
| Morgan Stanley VIF Growth Portfolio Class I |
117,398 | 41.10 | 51.55 | 4,708,577 | 0.00 | 0.20 | 0.75 | 30.82 | 31.54 | |||||||||||||||||||||||||||||||||||
| Neuberger Berman AMT Mid Cap Growth Portfolio Class I |
275,120 | 39.20 | 42.11 | 6,866,553 | 0.00 | 0.00 | 0.75 | 31.76 | 32.75 | |||||||||||||||||||||||||||||||||||
| Neuberger Berman AMT Short Duration Bond Portfolio Class I |
4,621 | 13.47 | 62,253 | 0.00 | 0.10 | 3.58 | ||||||||||||||||||||||||||||||||||||||
| Neuberger Berman AMT Sustainable Equity Portfolio Class I |
28,121 | 23.53 | 37.92 | 405,849 | 0.27 | 0.00 | 0.70 | 25.01 | 25.88 | |||||||||||||||||||||||||||||||||||
| PIMCO CommodityRealReturn Strategy Portfolio Administrative Class |
103,793 | 8.08 | 16.29 | 638,851 | 4.56 | 0.00 | 1.10 | 10.21 | 11.43 | |||||||||||||||||||||||||||||||||||
| PIMCO Global Bond Opportunities Portfolio (Unhedged) Administrative Class |
34,086 | 10.40 | 16.43 | 379,069 | 2.39 | 0.00 | 0.70 | 5.38 | 6.12 | |||||||||||||||||||||||||||||||||||
| PIMCO Real Return Portfolio Administrative Class |
539,109 | 16.19 | 20.26 | 7,579,608 | 1.66 | 0.00 | 0.75 | 7.63 | 8.44 | |||||||||||||||||||||||||||||||||||
| PIMCO Short-Term Portfolio Administrative Class |
368,021 | 11.07 | 12.60 | 4,371,680 | 2.51 | 0.00 | 1.10 | 1.67 | 2.80 | |||||||||||||||||||||||||||||||||||
| PIMCO Total Return Portfolio Administrative Class |
829,145 | 14.90 | 17.49 | 12,898,225 | 3.01 | 0.00 | 1.10 | 7.17 | 8.36 | |||||||||||||||||||||||||||||||||||
| Pioneer Fund VCT Portfolio Class I |
67,449 | 25.93 | 30.81 | 1,719,428 | 1.05 | 0.20 | 0.70 | 30.42 | 31.07 | |||||||||||||||||||||||||||||||||||
| Pioneer Mid Cap Value VCT Portfolio Class I |
47,037 | 20.62 | 30.69 | 950,313 | 1.37 | 0.00 | 0.75 | 27.48 | 28.44 | |||||||||||||||||||||||||||||||||||
| Pioneer Select Mid Cap Growth VCT Portfolio Class I |
97,512 | 31.48 | 32.60 | 3,103,723 | 0.00 | 0.20 | 0.50 | 32.42 | 32.82 | |||||||||||||||||||||||||||||||||||
| Putnam VT Diversified Income Fund Class IB |
296,872 | 19.25 | 20.93 | 6,083,964 | 3.29 | 0.00 | 0.75 | 10.40 | 11.23 | |||||||||||||||||||||||||||||||||||
| Putnam VT International Value Fund Class IB |
340,563 | 9.43 | 10.47 | 3,538,249 | 2.66 | 0.20 | 1.10 | 18.91 | 19.98 | |||||||||||||||||||||||||||||||||||
| Putnam VT Large Cap Growth Fund Class IB |
41,313 | 5.75 | 237,590 | 0.13 | 0.50 | 36.06 | ||||||||||||||||||||||||||||||||||||||
| Putnam VT Large Cap Value Fund Class IB |
705,479 | 25.05 | 27.79 | 14,038,302 | 2.03 | 0.20 | 0.75 | 29.43 | 30.14 | |||||||||||||||||||||||||||||||||||
| Putnam VT Small Cap Value Fund Class IB |
9,006 | 20.67 | 33.67 | 193,870 | 0.67 | 0.00 | 0.70 | 23.37 | 24.24 | |||||||||||||||||||||||||||||||||||
| Putnam VT Sustainable Leaders Fund Class IB |
1,548 | 34.62 | 53,579 | 0.46 | 0.50 | 35.68 | ||||||||||||||||||||||||||||||||||||||
| SST SA Multi-Managed Mid Cap Value Portfolio Class 3 |
4,576 | 16.18 | 16.72 | 62,563 | 1.16 | 0.20 | 0.70 | 24.20 | 24.82 | |||||||||||||||||||||||||||||||||||
| SAST SA AB Growth Portfolio Class 1 |
236,793 | 31.58 | 31.67 | 7,466,841 | 0.00 | 0.10 | 0.25 | 34.54 | 34.74 | |||||||||||||||||||||||||||||||||||
|
57 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| December 31, 2019 | For the Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
| Unit Value ($)(a)(f) | Net | Investment Income |
Expense Ratio (%)(d)(f) |
Total Return (%)(e)(f) |
||||||||||||||||||||||||||||||||||||||||
| Sub-accounts | Units | Lowest | Highest | Assets ($)(b) | Ratio (%)(c) | Lowest | Highest | Lowest | Highest | |||||||||||||||||||||||||||||||||||
| SAST SA DFA Ultra Short Bond Portfolio Class 1 |
45,992 | 11.76 | 11.80 | 541,676 | 0.00 | 0.10 | 0.25 | 2.02 | 2.17 | |||||||||||||||||||||||||||||||||||
| SAST SA Federated Hermes Corporate Bond Portfolio Class 1 |
12,126 | 31.49 | 31.58 | 382,383 | 0.00 | 0.10 | 0.25 | 14.59 | 14.76 | |||||||||||||||||||||||||||||||||||
| SAST SA Fidelity Institutional AM® Real Estate Portfolio Class 1 |
7,659 | 51.15 | 51.30 | 391,975 | 0.00 | 0.10 | 0.25 | 25.90 | 26.09 | |||||||||||||||||||||||||||||||||||
| SAST SA Franklin BW U.S. Large Cap Value Portfolio Class 1 |
50,973 | 51.04 | 51.19 | 2,603,629 | 0.00 | 0.10 | 0.25 | 25.37 | 25.56 | |||||||||||||||||||||||||||||||||||
| SAST SA Franklin Systematic U.S. Large Cap Value Portfolio Class 1 |
12,070 | 43.53 | 43.66 | 525,615 | 0.00 | 0.10 | 0.25 | 24.47 | 24.66 | |||||||||||||||||||||||||||||||||||
| SAST SA Goldman Sachs Global Bond Portfolio Class 1 |
17,482 | 19.26 | 19.31 | 329,522 | 0.00 | 0.10 | 0.25 | 6.60 | 6.76 | |||||||||||||||||||||||||||||||||||
| SAST SA Invesco Growth Opportunities Portfolio Class 1 |
9,634 | 15.04 | 15.08 | 144,960 | 0.00 | 0.10 | 0.25 | 28.65 | 28.84 | |||||||||||||||||||||||||||||||||||
| SAST SA Janus Focused Growth Portfolio Class 1 |
26,003 | 35.33 | 918,607 | 0.00 | 0.10 | 36.08 | ||||||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Diversified Balanced Portfolio Class 1 |
223,521 | 24.35 | 28.63 | 4,355,160 | 1.80 | 0.00 | 0.75 | 18.08 | 18.97 | |||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Emerging Markets Portfolio Class 1 |
16,999 | 30.68 | 30.77 | 522,209 | 0.00 | 0.10 | 0.25 | 20.83 | 21.02 | |||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Equity-Income Portfolio Class 1 |
113,829 | 27.18 | 27.26 | 3,013,363 | 0.00 | 0.10 | 0.25 | 26.84 | 27.03 | |||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Global Equities Portfolio Class 1 |
22,032 | 19.32 | 19.38 | 425,973 | 0.00 | 0.10 | 0.25 | 19.59 | 19.77 | |||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Large Cap Core Portfolio Class 1 |
21,346 | 30.36 | 30.45 | 648,366 | 0.00 | 0.10 | 0.25 | 31.59 | 31.79 | |||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan MFS Core Bond Portfolio Class 1 |
2,636 | 25.77 | 25.85 | 67,971 | 0.00 | 0.10 | 0.25 | 9.19 | 9.36 | |||||||||||||||||||||||||||||||||||
| SAST SA JPMorgan Mid-Cap Growth Portfolio Class 1 |
135,809 | 34.87 | 34.97 | 3,754,790 | 0.00 | 0.10 | 0.25 | 39.23 | 39.44 | |||||||||||||||||||||||||||||||||||
| SAST SA MFS Blue Chip Growth Portfolio Class 1 |
3,602 | 17.73 | 17.78 | 64,014 | 0.00 | 0.10 | 0.25 | 31.89 | 32.09 | |||||||||||||||||||||||||||||||||||
| SAST SA MFS Massachusetts Investors Trust Portfolio Class 1 |
19,580 | 29.93 | 30.02 | 586,315 | 0.00 | 0.10 | 0.25 | 31.47 | 31.66 | |||||||||||||||||||||||||||||||||||
| SAST SA MFS Total Return Portfolio Class 1 |
25,472 | 31.10 | 31.19 | 792,968 | 0.00 | 0.10 | 0.25 | 20.06 | 20.24 | |||||||||||||||||||||||||||||||||||
| SAST SA Morgan Stanley International Equities Portfolio Class 1 |
36,084 | 13.82 | 13.86 | 499,102 | 0.00 | 0.10 | 0.25 | 20.33 | 20.51 | |||||||||||||||||||||||||||||||||||
| SAST SA PineBridge High-Yield Bond Portfolio Class 1 |
11,230 | 28.23 | 28.31 | 317,204 | 0.00 | 0.10 | 0.25 | 14.59 | 14.76 | |||||||||||||||||||||||||||||||||||
| SAST SA Putnam International Growth and Income Portfolio Class 1 |
30,996 | 16.07 | 16.12 | 498,755 | 0.00 | 0.10 | 0.25 | 20.02 | 20.20 | |||||||||||||||||||||||||||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 1 |
81,637 | 60.58 | 60.76 | 4,396,176 | 0.00 | 0.10 | 0.25 | 30.84 | 31.04 | |||||||||||||||||||||||||||||||||||
| SAST SA Wellington Capital Appreciation Portfolio Class 3 |
23,904 | 24.49 | 25.32 | 411,439 | 0.00 | 0.20 | 0.70 | 29.93 | 30.58 | |||||||||||||||||||||||||||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 1 |
11,443 | 20.08 | 20.13 | 229,734 | 0.00 | 0.10 | 0.25 | 7.06 | 7.22 | |||||||||||||||||||||||||||||||||||
| SAST SA Wellington Government and Quality Bond Portfolio Class 3 |
12,242 | 10.94 | 11.31 | 134,230 | 2.38 | 0.20 | 0.70 | 6.31 | 6.84 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Dynamic Allocation Fund |
457,632 | 14.27 | 14.75 | 5,825,237 | 1.11 | 0.20 | 0.70 | 19.48 | 20.07 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Emerging Economies Fund |
14,839 | 11.50 | 11.89 | 168,796 | 1.39 | 0.20 | 0.70 | 19.46 | 20.06 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Government Money Market I Fund |
766,161 | 9.24 | 10.49 | 7,707,898 | 1.66 | 0.00 | 1.10 | 0.56 | 1.68 | |||||||||||||||||||||||||||||||||||
| VALIC Company I International Equities Index Fund |
264,885 | 17.50 | 20.73 | 3,145,594 | 3.37 | 0.00 | 0.75 | 20.39 | 21.29 | |||||||||||||||||||||||||||||||||||
| VALIC Company I International Value Fund |
8,511 | 10.03 | 11.51 | 85,546 | 2.60 | 0.25 | 0.70 | 15.61 | 16.13 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Mid Cap Index Fund |
586,733 | 24.34 | 43.13 | 15,258,763 | 1.42 | 0.00 | 1.10 | 24.34 | 25.71 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Mid Cap Value Fund |
6,482 | 16.99 | 17.56 | 93,860 | 0.54 | 0.20 | 0.70 | 29.24 | 29.88 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Nasdaq-100 Index Fund |
185,531 | 46.65 | 52.58 | 8,086,410 | 0.41 | 0.00 | 0.75 | 37.63 | 38.66 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Science & Technology Fund |
136,105 | 44.20 | 68.89 | 5,447,113 | 0.00 | 0.00 | 0.75 | 38.43 | 39.47 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Small Cap Index Fund |
314,899 | 36.54 | 40.37 | 7,697,084 | 1.13 | 0.00 | 0.75 | 24.21 | 25.14 | |||||||||||||||||||||||||||||||||||
| VALIC Company I Stock Index Fund |
880,829 | 34.20 | 42.05 | 23,486,571 | 1.55 | 0.00 | 0.75 | 30.11 | 31.09 | |||||||||||||||||||||||||||||||||||
| VALIC Company I U.S. Socially Responsible Fund |
4,948 | 21.39 | 22.11 | 90,187 | 1.25 | 0.20 | 0.70 | 30.77 | 31.43 | |||||||||||||||||||||||||||||||||||
| VanEck VIP Emerging Markets Fund Initial Class |
4,711 | 36.77 | 173,208 | 0.00 | 0.50 | 29.94 | ||||||||||||||||||||||||||||||||||||||
| VanEck VIP Global Resources Fund Initial Class |
5,102 | 24.00 | 122,467 | 0.00 | 0.50 | 11.31 | ||||||||||||||||||||||||||||||||||||||
| Vanguard VIF High Yield Bond Portfolio |
276,717 | 18.55 | 27.68 | 5,720,005 | 5.61 | 0.00 | 1.10 | 14.41 | 15.67 | |||||||||||||||||||||||||||||||||||
| Vanguard VIF Real Estate Index Portfolio |
630,273 | 20.41 | 35.06 | 14,240,366 | 2.80 | 0.00 | 1.10 | 27.40 | 28.81 | |||||||||||||||||||||||||||||||||||
| (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. |
|
58 |
SEPARATE ACCOUNT VL-R
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
| 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.
|
59 |
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
AMERICAN GENERAL LIFE INSURANCE COMPANY
| STATUTORY FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION | Page | |||
| 2 | ||||
| 4 | ||||
| Statutory Statements of Operations for the Years Ended December 31, 2023, 2022 and 2021 |
6 | |||
| 7 | ||||
| Statutory Statements of Cash Flows for the Years Ended December 31, 2023, 2022 and 2021 |
8 | |||
| 10 | ||||
| 73 | ||||
| 75 | ||||
| 81 | ||||
| 82 | ||||
| 1 |
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
| 2 |
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
| 3 |
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.
| 4 |
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.
| 5 |
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.
| 6 |
AMERICAN GENERAL LIFE INSURANCE COMPANY
STATUTORY STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS
| (in millions) | Common & Preferred Stock |
Gross Paid- 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.
| 7 |
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 | ||||||
| 8 |
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.
| 9 |
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”).
| 10 |
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.
| 11 |
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.
| 12 |
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)
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
| 13 |
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)
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
| 14 |
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)
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
| 15 |
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)
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
| 16 |
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)
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.
| 17 |
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)
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
| 18 |
AMERICAN GENERAL LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS (Continued)
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
| 19 |
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
| 20 |
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.
| 21 |
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.
| 22 |
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.
| 23 |
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.
| 24 |
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.
| 25 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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
|
SECOND
|
THIRD
|
FOURTH
|
||||||||||||||||||||||||
| 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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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.
| 50 |
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 |
||||||||||||
| 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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 | |||||||
| 58 |
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
| 59 |
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).
| 60 |
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.
| 61 |
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
| 62 |
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.
| 63 |
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
| 64 |
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 | |||
| 74 |
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 | |||||
| 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 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 Admitted |
|||||||
| 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 | ||||||
| 75 |
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: |
— | — | ||||||
| 76 |
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 | |||||||
| 77 |
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 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 | |||||||
| 78 |
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 |
— | — | — | — | — | |||||||||||||||||
| 79 |
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 |
— | — | — | — | — | |||||||||||||||
| 80 |
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 |
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 |
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 |
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
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
| 3 | ||||
| 5 | ||||
| 6 | ||||
| 7 | ||||
| 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 |
23 | |||
| Note 4 |
27 | |||
| Note 5 |
29 | |||
| Note 6 |
33 | |||
| Note 7 |
35 | |||
| Note 8 |
38 | |||
| Note 9 |
42 | |||
| Note 10 |
43 | |||
| Note 11 |
46 | |||
| Note 12 |
48 | |||
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 |
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
American Home Assurance Company
Statutory Basis Financial Statements
(Dollars in Millions)
| 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 | |
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 |
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| 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 |
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| 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 | |
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); |
(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): |
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 | |
American Home Assurance Company
Statutory Basis Financial Statements
(Dollars in Millions)
| 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 | |
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. | |
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. | |
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. | |
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. |
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. |
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. | |
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. | |
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. | |
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. |
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. |
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. | |
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. | |
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. | |
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. | |
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. | |
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. | |
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. | |
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. | |
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. | |
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. | |
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. | |
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. | |
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. |
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. | |
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. |
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. | |
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.
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. | |
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. | |
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. | |
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. | |
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. |
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. |
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. | |
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. | |
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. | |
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. | |
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. | |
American Home Assurance Company
Statutory Basis Financial Statements
(Dollars in Millions)
| 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. | |
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. | |
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. | |