v3.25.2
Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company reports its results of operations in two segments: Insurance and Asset Management. The Company separately reports the results of its Corporate division and the effects of consolidating FG VIEs and CIVs. This presentation is consistent with the manner in which the Chief Executive Officer and President, the chief operating decision maker (CODM), reviews the business to assess performance and allocate resources. The CODM predominantly uses adjusted operating income
to allocate resources for each segment in the annual budget and forecasting process and to assess the performance for each segment.

The Company analyzes the operating performance of each segment using “segment adjusted operating income (loss).” Results for each segment and division include specifically identifiable expenses as well as intersegment expense allocations, as applicable, based on time studies and other cost allocation methodologies based on headcount or other metrics. Segment adjusted operating income is defined as “net income (loss) attributable to AGL,” adjusted for the following items, which primarily affect the Insurance segment and Corporate division:

•Elimination of realized gains (losses) on the Company’s investments, except for gains and losses on securities classified as trading.
•Elimination of non-credit impairment-related fair value gains (losses) on credit derivatives that are recognized in net income, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses. 
•Elimination of fair value gains (losses) on the Company’s committed capital securities (CCS) that are recognized in net income.
•Elimination of foreign exchange gains (losses) on remeasurement of net premium receivables and loss and loss adjustment expense (LAE) reserves that are recognized in net income.
•The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

In addition to the adjustments listed above, segment adjusted operating income (loss) differs from GAAP in other respects. The Insurance segment includes: (i) premiums and losses from the financial guaranty insurance policies issued by AG that guarantees the FG VIEs’ debt; and (ii) the insurance subsidiaries’ share of earnings from all their investments in funds managed by Sound Point in “equity in earnings (losses) of investees.” Under GAAP, (i) FG VIEs are consolidated by AG and the premiums and losses/recoveries associated with the financial guaranty policies in respect of the FG VIEs’ debt are eliminated (the reconciliation tables below present the FG VIEs and related eliminations in “other”); and (ii) certain investments in funds managed by Sound Point are, or were in prior periods, accounted for as CIVs (in the reconciliation tables below, the CIVs and related eliminations of the Insurance segment’s “equity in earnings (losses) of investees” associated with the Company’s ownership interest in CIVs are presented in “other”).

The Company does not report assets by reportable segment as the CODM does not assess performance or allocate resources based on assets.

The Insurance segment primarily consists of the adjusted operating income (loss) of the Company’s insurance subsidiaries and AGAS. The Asset Management segment includes the results of the Company’s equity method ownership interest in Sound Point and other asset management-related incentive fees.

The Corporate division primarily consists of: (i) interest expense and any losses on the extinguishment of the U.S. Holding Companies’ debt; (ii) other corporate operating expenses of AGL and the U.S. Holding Companies, (iii) beginning in the third quarter of 2024, equity in earnings from certain alternative investments that were transferred from AG to AGMH as part of a stock redemption that occurred on August 5, 2024, and (iii) gains and losses associated with certain corporate development or other strategic initiatives.
    
The Other category in the tables below primarily includes the effect of consolidating FG VIEs, CIVs and intersegment eliminations. See Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles.
    
The following table presents information for the Company’s operating segments. Intersegment revenues include transactions between and among the segments, the Corporate division and Other category.
Segment Information
Second Quarter
20252024
InsuranceAsset ManagementInsuranceAsset Management
(in millions)
Third-party revenues$196 $13 $186 $6 
Intersegment revenues3 2 3 1 
Segment revenues199 15 189 7 
Segment loss and LAE (benefit)27 — — — 
Segment employee compensation and benefit expenses44 — 40 — 
Segment amortization of deferred acquisition cost5 — 3 — 
Other segment items (2)29 9 27 4 
Segment expenses105 9 70 4 
Segment equity in earnings (losses) of investees2 (1)15 (3)
Less: Segment provision (benefit) for income taxes20 1 18 — 
Segment adjusted operating income (loss)$76 $4 $116 $— 
Selected components of segment adjusted operating income:
Net investment income$89 $— $81 $— 
Non-cash compensation and operating expenses (3)14 — 11 — 

Six Months
20252024
Insurance (1)Asset ManagementInsurance Asset Management
(in millions)
Third-party revenues$433 $18 $413 $7 
Intersegment revenues5 3 5 1 
Segment revenues438 21 418 8 
Segment loss and LAE (benefit)4 — 4 — 
Segment employee compensation and benefit expenses96 — 88 — 
Segment amortization of deferred acquisition cost10 — 9 — 
Other segment items (2)59 13 54 4 
Segment expenses169 13 155 4 
Segment equity in earnings (losses) of investees32 12 55 (2)
Less: Segment provision (benefit) for income taxes57 4 53 1 
Segment adjusted operating income (loss)$244 $16 $265 $1 
Selected components of segment adjusted operating income:
Net investment income$175 $— $164 $— 
Non-cash compensation and operating expenses (3)32 — 28 — 
_____________________
(1)    Six months 2025 results include the gain recognized in connection with the Lehman Brothers International (Europe) (in administration) (LBIE) litigation, which represents the full satisfaction of the judgment the Company was awarded and its claims for attorneys’ fees, expenses and interest. See Note 6, Contracts Accounted for as Credit Derivatives, for additional information.
(2)    Other segment items for the Insurance segment include professional services expenses, maintenance, depreciation expense, lease expense, investment management expenses and certain overhead expenses; and for the Asset Management segment include expenses associated with incentive fees.
(3)    Amounts consist of depreciation, amortization and share-based compensation expenses.
The tables below present a reconciliation of significant components of segment information to the comparable consolidated amounts.

Reconciliation of Segment Information to Consolidated Information
Three Months Ended June 30, 2025
Equity in Earnings (Losses) of InvesteesLess:Net Income (Loss) Attributable to AGL
 Revenues Expenses Provision (Benefit) for Income Taxes Noncontrolling Interests 
 (in millions)
Segments:
Insurance$199 $105 $2 $20 $— $76 
Asset Management15 9 (1)1 — 4 
Total segments214 114 1 21 — 80 
Corporate division4 39 3 (3)— (29)
Other— (2)(1)(1)3 (1)
Subtotal218 151 3 17 3 50 
Reconciling items:
Realized gains (losses) on investments(6)— — — — (6)
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives(1)— — — — (1)
Fair value gains (losses) on CCS(1)— — — — (1)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves71 — — — — 71 
Tax effect— — — 10 — (10)
Consolidated$281 $151 $3 $27 $3 $103 

Reconciliation of Segment Information to Consolidated Information
Three Months Ended June 30, 2024
Equity in Earnings (Losses) of InvesteesLess:Net Income (Loss) Attributable to AGL
 Revenues Expenses Provision (Benefit) for Income Taxes Noncontrolling Interests 
 (in millions)
Segments:
Insurance$189 $70 $15 $18 $— $116 
Asset Management7 4 (3)— — — 
Total segments196 74 12 18 — 116 
Corporate division4 44 — (5)— (35)
Other4 (5)(7)— 3 (1)
Subtotal204 113 5 13 3 80 
Reconciling items:
Realized gains (losses) on investments(6)— — — — (6)
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives3 — — — — 3 
Fair value gains (losses) on CCS1 — — — — 1 
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves— — — — — — 
Tax effect— — — — — — 
Consolidated$202 $113 $5 $13 $3 $78 
Reconciliation of Segment Information to Consolidated Information
Six Months Ended June 30, 2025
Equity in Earnings (Losses) of InvesteesLess:Net Income (Loss) Attributable to AGL
 Revenues Expenses Provision (Benefit) for Income Taxes Noncontrolling Interests 
 (in millions)
Segments:
Insurance$438 $169 $32 $57 $— $244 
Asset Management21 13 12 4 — 16 
Total segments459 182 44 61 — 260 
Corporate division8 79 19 (3)— (49)
Other16 (4)(7)— 12 1 
Subtotal483 257 56 58 12 212 
Reconciling items:
Realized gains (losses) on investments(22)— — — — (22)
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives60 63 — — — (3)
Fair value gains (losses) on CCS1 — — — — 1 
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves104 — — — — 104 
Tax effect— — — 13 — (13)
Consolidated$626 $320 $56 $71 $12 $279 

Reconciliation of Segment Information to Consolidated Information
Six Months Ended June 30, 2024
Equity in Earnings (Losses) of InvesteesLess:Net Income (Loss) Attributable to AGL
 Revenues Expenses Provision (Benefit) for Income Taxes Noncontrolling Interests 
 (in millions)
Segments:
Insurance$418 $155 $55 $53 $— $265 
Asset Management8 4 (2)1 — 1 
Total segments426 159 53 54 — 266 
Corporate division9 91 — (10)— (72)
Other20 (10)(24)— 7 (1)
Subtotal455 240 29 44 7 193 
Reconciling items:
Realized gains (losses) on investments2 — — — — 2 
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives11 (2)— — — 13 
Fair value gains (losses) on CCS(9)— — — — (9)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves(12)— — — — (12)
Tax effect— — — — — — 
Consolidated$447 $238 $29 $44 $7 $187