v3.26.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements
4. Fair Value Measurements
FAIR VALUE MEASUREMENTS ON A RECURRING BASIS
Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets 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 we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do 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 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 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.
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS
The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used:
September 30, 2026Level 1Level 2Level 3
Counterparty
Netting(a)
Cash
Collateral		Total
(in millions)
Assets:
Bonds available for sale:
U.S. government and government sponsored entities
$586 $3,038 $— $— $— $3,624 
Obligations of states, municipalities and political subdivisions
— 2,325 4 — — 2,329 
Non-U.S. governments232 5,941 — — — 6,173 
Corporate debt— 38,249 34 — — 38,283 
RMBS— 9,680 1,350 — — 11,030 
CMBS— 4,720 30 — — 4,750 
CLO/ABS— 3,463 1,990 — — 5,453 
Total bonds available for sale
818 67,416 3,408 — — 71,642 
Other bond securities:
Obligations of states, municipalities and political subdivisions— 47 — — — 47 
Non-U.S. governments— 21 — — — 21 
Corporate debt— 200 — — — 200 
RMBS— 39 50 — — 89 
CMBS— 35 — — — 35 
CLO/ABS— 151 106 — — 257 
Total other bond securities
— 493 156 — — 649 
Equity securities(b)
973 4 81 — — 1,058 
Other invested assets(c)
— 137 78 — — 215 
Derivative assets(d)
— 272 24 (142)(143)11 
Short-term investments
4,282 248 — — — 4,530 
Total$6,073 $68,570 $3,747 $(142)$(143)$78,105 
Liabilities:
Derivative liabilities(d)
$— $306 $24 $(142)$(138)$50 
Fortitude Re funds withheld payable
— — (184)— — (184)
Other liabilities(d)
— 1 81 — — 82 
Total$— $307 $(79)$(142)$(138)$(52)
December 31, 2025Level 1Level 2Level 3
Counterparty
Netting(a)
Cash
Collateral		Total
(in millions)
Assets:
Bonds available for sale:
U.S. government and government sponsored entities
$209 $3,089 $— $— $— $3,298 
Obligations of states, municipalities and political subdivisions
— 2,771 4 — — 2,775 
Non-U.S. governments66 6,427 23 — — 6,516 
Corporate debt— 37,122 113 — — 37,235 
RMBS— 8,622 1,546 — — 10,168 
CMBS— 4,592 24 — — 4,616 
CLO/ABS— 4,683 1,741 — — 6,424 
Total bonds available for sale
275 67,306 3,451 — — 71,032 
Other bond securities:
Obligations of states, municipalities and political subdivisions
— 
51 
— 
— 
— 
51 
Non-U.S. governments— 23 — — — 23 
Corporate debt— 274 — — — 274 
RMBS— 46 51 — — 97 
CMBS— 42 — — — 42 
CLO/ABS— 135 119 — — 254 
Total other bond securities
— 571 170 — — 741 
December 31, 2025Level 1Level 2Level 3
Counterparty
Netting(a)
Cash
Collateral		Total
(in millions)
Equity securities(b)
446 1 55 — — 502 
Other invested assets (c)
1,512 143 92 — — 1,747 
Derivative assets(d)
— 312 26 (164)(169)5 
Short-term investments
4,106 1,803 — — — 5,909 
Other assets(d)
— — 130 — — 130 
Total$6,339 $70,136 $3,924 $(164)$(169)$80,066 
Liabilities:
Derivative liabilities(d)
$— $439 $26 $(164)$(212)$89 
Fortitude Re funds withheld payable
— — (92)— — (92)
Other liabilities(d)
— — 73 — — 73 
Total$— $439 $7 $(164)$(212)$70 
(a)Represents netting of derivative exposures covered by qualifying master netting agreements.
(b)As of September 30, 2026, includes AIG's ownership interests in Onex of $540 million.
(c)Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $2.9 billion and $3.3 billion as of September 30, 2026 and December 31, 2025, respectively. As of December 31, 2025, includes AIG's ownership interest in Corebridge of $1.5 billion on which AIG elected the fair value option.
(d)Presented as part of Other assets and Other liabilities on the Condensed Consolidated Balance Sheets.
CHANGES IN LEVEL 3 RECURRING FAIR VALUE MEASUREMENTS
The following tables present changes during the three and nine months ended September 30, 2026 and 2025 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets at September 30, 2026 and 2025:
(in millions)
Fair Value
Beginning
of Period
Net Realized
and Unrealized
Gains (Losses)
Included in Income(a)
Other
Comprehensive
Income (Loss)		PurchasesSales
Issuances
and
Settlements(b)
Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period
Three Months Ended September 30, 2026
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$5 $— $(1)$— $— $— $— $— $— $4 
Corporate debt
76 (3)9 — — (4)— (44)— 34 
RMBS
1,450 7 (42)— (15)(48)— (2)— 1,350 
CMBS
39 — — 14 — — — (3)(20)30 
CLO/ABS1,858 (2)(33)348 (127)(56)25 (43)20 1,990 
Total bonds available for sale
3,428 2 (67)362 (142)(108)25 (92)— 3,408 
Other bond securities:
RMBS53 (1)— — (1)(1)— — — 50 
CLO/ABS105 — — 2 — (1)— — — 106 
Total other bond securities
158 (1)— 2 (1)(2)— — — 156 
Equity securities
14 1 — 67 (1)— — — — 81 
Other invested assets
96 (18)— — — — — — — 78 
Total
$3,696 $(16)$(67)$431 $(144)$(110)$25 $(92)$— $3,723 
(in millions)
Fair Value
Beginning
of Period
Net Realized
and Unrealized
(Gains) Losses
Included in Income(a)
Other
Comprehensive
(Income) Loss		PurchasesSales
Issuances
and
Settlements(b)
Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period
Liabilities:
Fortitude Re funds withheld payable$(75)$(85)$— $— $— $(24)$— $— $— $(184)
Other Liabilities81 — — — — — — — — 81 
Total$6 $(85)$— $— $— $(24)$— $— $— $(103)
(in millions)
Fair Value
Beginning
of Period
Net Realized
and Unrealized
Gains (Losses)
Included in Income(a)
Other
Comprehensive
Income (Loss)		PurchasesSales
Issuances
and
Settlements(b)
Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period
Three Months Ended September 30, 2025
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$3 $— $— $— $— $— $— $— $— $3 
Non-U.S. governments
6 — — — — — 1 — — 7 
Corporate debt
147 (2)(15)— (2)(2)— (6)— 120 
RMBS
1,633 7 8 46 — (51)— (17)— 1,626 
CMBS
26 (5)5 — — (4)— — — 22 
CLO/ABS1,200 1 9 437 (14)(146)— (1)— 1,486 
Total bonds available for sale
3,015 1 7 483 (16)(203)1 (24)— 3,264 
Other bond securities:
Corporate debt
1 — — — — — — — — 1 
RMBS50 — — 3 — — — — — 53 
CLO/ABS123 1 — 11 — (1)— (2)— 132 
Total other bond securities
174 1 — 14 — (1)— (2)— 186 
Equity securities
46 2 — 21 (16)— 8 — — 61 
Other invested assets
93 (5)— 6 — (1)— — — 93 
Other assets
129 — — — — — — — — 129 
Total
$3,457 $(1)$7 $524 $(32)$(205)$9 $(26)$— $3,733 
(in millions)
Fair Value
Beginning
of Period
Net Realized
and Unrealized
(Gains) Losses
Included in Income(a)
Other
Comprehensive
(Income) Loss		PurchasesSales
Issuances
and
Settlements(b)
Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period
Liabilities:
Fortitude Re funds withheld payable$(185)$54 $— $— $— $28 $— $— $— $(103)
Other liabilities81 (9)— — — — — — — 72 
Total$(104)$45 $— $— $— $28 $— $— $— $(31)
(in millions)
Fair Value
Beginning
of Year
Net Realized
and Unrealized
Gains (Losses)
Included in Income(a)
Other
Comprehensive
Income (Loss)		PurchasesSales
Issuances
and
Settlements(b)
Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period
Nine Months Ended September 30, 2026
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$4 $— $(1)$2 $(1)$— $— $— $— $4 
Non-U.S. governments
23 1 — 3 (3)(3)— (14)(7)— 
Corporate debt
113 (2)1 6 (7)(5)9 (70)(11)34 
RMBS
1,546 20 (83)14 (15)(139)8 (2)1 1,350 
CMBS
24 (1)1 14 (8)(2)25 (3)(20)30 
CLO/ABS1,741 — (39)881 (263)(317)31 (62)18 1,990 
Total bonds available for sale
3,451 18 (121)920 (297)(466)73 (151)(19)3,408 
Other bond securities:
RMBS51 (1)— 2 (1)(3)— — 2 50 
CLO/ABS119 (1)— 2 (9)(6)— — 1 106 
Total other bond securities
170 (2)— 4 (10)(9)— — 3 156 
Equity securities
55 1 — 97 (49)— — — (23)81 
Other invested assets
92 (17)— 3 — (2)— — 2 78 
Other assets
130 — — — — — — — (130)— 
Total
$3,898 $— $(121)$1,024 $(356)$(477)$73 $(151)$(167)$3,723 
(in millions)
Fair Value
Beginning
of Year
Net Realized
and Unrealized
(Gains) Losses
Included in Income(a)
Other
Comprehensive
(Income) Loss		PurchasesSales
Issuances
and
Settlements(b)
Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period
Liabilities:
Fortitude Re funds withheld payable$(92)$(44)$— $— $— $(48)$— $— $— $(184)
Other Liabilities73 8 — — — — — — — 81 
Total$(19)$(36)$— $— $— $(48)$— $— $— $(103)
(in millions)
Fair Value
Beginning
of Year
Net Realized
and Unrealized
Gains (Losses)
Included in Income(a)
Other
Comprehensive
Income (Loss)		PurchasesSales
Issuances
and
Settlements(b)
Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period
Nine Months Ended September 30, 2025
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions$3 $— $— $— $— $— $— $— $— $3 
Non-U.S. governments
7 — — — — (1)1 — — 7 
Corporate debt
240 (10)(4)5 (8)(152)49 (38)38 120 
RMBS
1,894 22 50 54 (3)(152)3 (242)— 1,626 
CMBS
26 (4)6 — (4)(5)4 (1)— 22 
CLO/ABS840 7 20 969 (84)(200)— (7)(59)1,486 
Total bonds available for sale
3,010 15 72 1,028 (99)(510)57 (288)(21)3,264 
Other bond securities:
Corporate debt1 — — — — — — — — 1 
RMBS50 2 — 3 — (2)— — — 53 
CLO/ABS113 5 — 12 — (6)33 (25)— 132 
Total other bond securities
164 7 — 15 — (8)33 (25)— 186 
Equity securities
15 6 — 56 (33)— 17 — — 61 
Other invested assets
163 (5)— 7 — (31)1 (63)21 93 
Other assets
129 — — — — — — — — 129 
Total
$3,481 $23 $72 $1,106 $(132)$(549)$108 $(376)$— $3,733 
(in millions)
Fair Value
Beginning
of Year
Net Realized
and Unrealized
(Gains) Losses
Included in Income(a)
Other
Comprehensive
(Income) Loss		PurchasesSales
Issuances
and
Settlements(b)
Gross
Transfers
In		Gross
Transfers
Out		OtherFair
Value
End of
Period
Liabilities:
Fortitude Re funds withheld payable$(128)$109 $— $— $— $(84)$— $— $— $(103)
Other liabilities100 (28)— — — — — — — 72 
Total
$(28)$81 $— $— $— $(84)$— $— $— $(31)
(a)Includes Net realized gains (losses) related to assets of $(8) million and $(7) million for the three months ended September 30, 2026 and 2025, respectively, and $(7) million and $(6) million for the nine months ended September 30, 2026 and 2025, respectively, and the remainder is recorded in Net investment income. All Net realized and unrealized gains (losses) related to liabilities are recorded in Net realized gains (losses).
(b)There were no issuances during the three and nine months ended September 30, 2026 and 2025.
The following table presents the changes in unrealized gains (losses) for financial instruments classified as Level 3 still held at the end of the period:
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
(in millions)
Changes in
Unrealized
Gains
(Losses)
Included in
Income		Changes in
Unrealized Gains
(Losses)
Included in Other
Comprehensive
Income (Loss)		Changes in
Unrealized
Gains
(Losses)
Included in
Income		Changes in
Unrealized Gains
(Losses)
Included in Other
Comprehensive
Income (Loss)		Changes in
Unrealized
Gains
(Losses)
Included in
Income		Changes in
Unrealized Gains
(Losses)
Included in Other
Comprehensive
Income (Loss)		Changes in
Unrealized
Gains
(Losses)
Included in
Income		Changes in
Unrealized Gains
(Losses)
Included in Other
Comprehensive
Income (Loss)
Assets:
Bonds available for sale:
Corporate debt
$— $8 $— $(13)$— $2 $— $(13)
RMBS
— (44)— 15 — (83)— 30 
CMBS
— — — 5 — 1 — 5 
CLO/ABS— (33)— 10 — (50)— 29 
Total bonds available for sale
— (69)— 17 — (130)— 51 
Other bond securities:
RMBS(1)— — — (1)— 1 — 
CLO/ABS(1)— 4 — (2)— 9 — 
Total other bond securities
(2)— 4 — (3)— 10 — 
Equity securities
1 — — — (2)— 2 — 
Other invested assets
(15)— (1)— (13)— (2)— 
Total
$(16)$(69)$3 $17 $(18)$(130)$10 $51 
Liabilities:
Fortitude Re funds withheld payable$79 $— $(30)$— $78 $— $(64)$— 
Total
$79 $— $(30)$— $78 $— $(64)$— 
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 gains (losses) on instruments held at September 30, 2026 and 2025 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities).
Transfers of Level 3 Assets and Liabilities
Gross Transfers in and out of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. The transfers of investments into Level 3 assets were due to diminished market transparency and liquidity for individual security types. Transfers of certain investments out of Level 3 assets were primarily the result of using observable pricing information that reflects the fair value of those securities without the need for adjustment based on our own assumptions regarding the characteristics of a specific security or the current liquidity in the market.
There were no significant transfers of derivative or other liabilities into or out of Level 3 for the three and nine months ended September 30, 2026 and 2025.
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
The following table includes information related to our investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate net asset value per share (or its equivalent). For these investments, which are measured at fair value on a recurring basis, we use the net asset value per share to measure fair value.
September 30, 2026December 31, 2025
(in millions)
Investment Category Includes		Fair Value
Using NAV
Per Share (or
its equivalent)		Unfunded
Commitments		Fair Value
Using NAV
Per Share (or
its equivalent)		Unfunded
Commitments
Investment Category*
Private equity funds:
Leveraged buyoutDebt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage$878 $388 $1,184 $527 
Real assetsInvestments in real estate properties, agricultural and infrastructure assets, including power plants and other energy producing assets375 30 516 81 
Growth equityFunds that make investments in established companies for the purpose of growing their businesses26 1 172 11 
Private equity secondariesInvestments in a pool of diversified funds across sectors and vintage years560 88 71 98 
OtherIncludes multi-strategy funds, co-investments and credit funds in opportunistic and distressed strategies961 549 1,147 549 
Total private equity funds2,800 1,056 3,090 1,266 
Hedge fundsFunds that pool money from accredited investors and seek returns by investing in a wide variety of strategies aimed at generating returns independent of overall market direction129 — 174 — 
Total$2,929 $1,056 $3,264 $1,266 
*In the second quarter of 2026, AIG revised the list of investment categories. Historical results have been recast to reflect these changes.
Private equity fund investments included above are not redeemable, because distributions from the funds will be received when underlying investments of the funds are liquidated. Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one-year or two-year increments. Hedge fund investments included above are generally redeemable with a quarter's notice, subject to underlying fund restrictions.
FAIR VALUE OPTION
The following table presents the gains or losses recorded related to the eligible instruments for which we elected the fair value option:
Gain (Loss) Three Months
Ended September 30,		Gain (Loss) Nine Months
Ended September 30,
(in millions)2026202520262025
Other bond securities(a)
$(8)$10 $2 $37 
Alternative investments(b)
(8)98 (96)185 
Retained investment in Corebridge(c)
— (348)(154)316 
Total gain (loss)$(16)$(240)$(248)$538 
(a)Includes certain securities supporting the funds withheld arrangements with Fortitude Re. For additional information regarding the gains and losses for Other bond securities, see Note 5. For additional information regarding the funds withheld arrangements with Fortitude Re, see Note 7.
(b)Includes certain hedge funds, private equity funds and real estate investments.
(c)Represents the impact of changes in Corebridge stock price on the value of AIG's ownership interest in Corebridge through March 31, 2026. At March 31, 2026, AIG's interest in Corebridge changed from being recognized as an equity method investment in Other invested assets to an equity security, at fair value. For additional information, see Note 1.
Interest income and dividend income on assets measured under the fair value option are recognized and included in Net investment income in the Consolidated Statements of Income.
FAIR VALUE INFORMATION ABOUT FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE
The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
Estimated Fair ValueCarrying
Value
(in millions)Level 1Level 2Level 3Total
September 30, 2026
Assets:
Mortgage and other loans receivable$— $199 $2,052 $2,251 $2,298 
Other invested assets— 523 10 533 533 
Other assets7 — — 7 7 
Liabilities:
Long-term debt— 9,371 — 9,371 10,256 
December 31, 2025
Assets:
Mortgage and other loans receivable$— $334 $2,500 $2,834 $2,887 
Other invested assets— 480 13 493 493 
Other assets16 — — 16 16 
Liabilities:
Long-term debt— 8,702 — 8,702 9,035 
The carrying value of Short-term investments, Cash, Fortitude Re funds withheld payable, and Debt of consolidated investment entities not included above approximated their fair values.