AMERICAN INTERNATIONAL GROUP, INC.
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 7, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Fair Value Measurements
- 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.
| 12 | AIG | Second Quarter 2026 Form 10-Q |
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:
| June 30, 2026 | Level 1 | Level 2 | Level 3 | CounterpartyNetting(a) | CashCollateral | Total |
|---|---|---|---|---|---|---|
| (in millions) | ||||||
| Assets: | ||||||
| Bonds available for sale: | ||||||
| U.S. government and government sponsored entities | $524 | $2,255 | $— | $— | $— | $2,779 |
| Obligations of states, municipalities and political subdivisions | — | 2,679 | 5 | — | — | 2,684 |
| Non-U.S. governments | 87 | 5,991 | — | — | — | 6,078 |
| Corporate debt | — | 38,201 | 76 | — | — | 38,277 |
| RMBS | — | 9,618 | 1,450 | — | — | 11,068 |
| CMBS | — | 4,900 | 39 | — | — | 4,939 |
| CLO/ABS | — | 3,789 | 1,858 | — | — | 5,647 |
| Total bonds available for sale | 611 | 67,433 | 3,428 | — | — | 71,472 |
| Other bond securities: | ||||||
| Obligations of states, municipalities and political subdivisions | — | 50 | — | — | — | 50 |
| Non-U.S. governments | — | 22 | — | — | — | 22 |
| Corporate debt | — | 207 | — | — | — | 207 |
| RMBS | — | 41 | 53 | — | — | 94 |
| CMBS | — | 36 | — | — | — | 36 |
| CLO/ABS | — | 153 | 105 | — | — | 258 |
| Total other bond securities | — | 509 | 158 | — | — | 667 |
| Equity securities(b) | 1,016 | 4 | 14 | — | — | 1,034 |
| Other invested assets(c) | — | 133 | 96 | — | — | 229 |
| Derivative assets(d) | — | 313 | 25 | (138) | (197) | 3 |
| Short-term investments | 3,765 | 1,448 | — | — | — | 5,213 |
| Total | $5,392 | $69,840 | $3,721 | $(138) | $(197) | $78,618 |
| Liabilities: | ||||||
| Derivative liabilities(d) | $— | $404 | $25 | $(138) | $(180) | $111 |
| Fortitude Re funds withheld payable | — | — | (75) | — | — | (75) |
| Other liabilities(d) | — | — | 81 | — | — | 81 |
| Total | $— | $404 | $31 | $(138) | $(180) | $117 |
| December 31, 2025 | Level 1 | Level 2 | Level 3 | CounterpartyNetting(a) | CashCollateral | 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. governments | 66 | 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 |
| AIG | Second Quarter 2026 Form 10-Q | 13 |
|---|
| December 31, 2025 | Level 1 | Level 2 | Level 3 | CounterpartyNetting(a) | CashCollateral | Total |
|---|---|---|---|---|---|---|
| (in millions) | ||||||
| RMBS | — | 46 | 51 | — | — | 97 |
| CMBS | — | 42 | — | — | — | 42 |
| CLO/ABS | — | 135 | 119 | — | — | 254 |
| Total other bond securities | — | 571 | 170 | — | — | 741 |
| 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 June 30, 2026, includes AIG's ownership interests in Onex of $563 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 June 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 six months ended June 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 June 30, 2026 and 2025:
| (in millions) | Fair ValueBeginning of Period | Net Realizedand UnrealizedGains (Losses)Included in Income(a) | OtherComprehensiveIncome (Loss) | Purchases | Sales | Issuancesand Settlements(b) | GrossTransfersIn | GrossTransfersOut | Other | FairValueEnd ofPeriod |
|---|---|---|---|---|---|---|---|---|---|---|
| Assets: | ||||||||||
| Bonds available for sale: | ||||||||||
| Obligations of states, municipalities and political subdivisions | $4 | $— | $— | $2 | $(1) | $— | $— | $— | $— | $5 |
| Non-U.S. governments | 7 | — | — | — | — | — | — | — | (7) | — |
| Corporate debt | 85 | 1 | (6) | 2 | (2) | (1) | 8 | — | (11) | 76 |
| RMBS | 1,486 | 7 | (4) | 5 | — | (45) | — | — | 1 | 1,450 |
| CMBS | 25 | (1) | 1 | — | (6) | — | 20 | — | — | 39 |
| CLO/ABS | 1,683 | 1 | (5) | 406 | (109) | (103) | 6 | (19) | (2) | 1,858 |
| Total bonds available for sale | 3,290 | 8 | (14) | 415 | (118) | (149) | 34 | (19) | (19) | 3,428 |
| Other bond securities: | ||||||||||
| RMBS | 50 | — | — | 2 | — | (1) | — | — | 2 | 53 |
| CLO/ABS | 117 | (1) | — | — | (9) | (3) | — | — | 1 | 105 |
| Total other bond securities | 167 | (1) | — | 2 | (9) | (4) | — | — | 3 | 158 |
| Equity securities | 54 | 3 | — | 14 | (34) | — | — | — | (23) | 14 |
| Other invested assets | 93 | — | — | 2 | — | (1) | — | — | 2 | 96 |
| Total | $3,604 | $10 | $(14) | $433 | $(161) | $(154) | $34 | $(19) | $(37) | $3,696 |
| (in millions) | Fair ValueBeginning of Period | Net Realizedand Unrealized(Gains) LossesIncluded in Income(a) | OtherComprehensive(Income) Loss | Purchases | Sales | Issuancesand Settlements(b) | GrossTransfersIn | GrossTransfersOut | Other | FairValueEnd ofPeriod |
|---|---|---|---|---|---|---|---|---|---|---|
| Liabilities: | ||||||||||
| Fortitude Re funds withheld payable | $(85) | $51 | $— | $— | $— | $(41) | $— | $— | $— | $(75) |
| Other Liabilities | 74 | 7 | — | — | — | — | — | — | — | 81 |
| Total | $(11) | $58 | $— | $— | $— | $(41) | $— | $— | $— | $6 |
| 14 | AIG | Second Quarter 2026 Form 10-Q |
| (in millions) | Fair ValueBeginning of Period | Net Realizedand UnrealizedGains (Losses)Included in Income(a) | OtherComprehensiveIncome (Loss) | Purchases | Sales | Issuancesand Settlements(b) | GrossTransfersIn | GrossTransfersOut | Other | FairValueEnd ofPeriod |
|---|---|---|---|---|---|---|---|---|---|---|
| Assets: | ||||||||||
| Bonds available for sale: | ||||||||||
| Obligations of states, municipalities and political subdivisions | $3 | $— | $— | $— | $— | $— | $— | $— | $— | $3 |
| Non-U.S. governments | 7 | — | — | — | — | (1) | — | — | — | 6 |
| Corporate debt | 115 | 1 | 1 | 2 | (2) | (26) | 49 | (31) | 38 | 147 |
| RMBS | 1,656 | 8 | 9 | 8 | — | (47) | — | (1) | — | 1,633 |
| CMBS | 26 | 1 | 1 | — | — | (1) | — | (1) | — | 26 |
| CLO/ABS | 915 | 5 | 10 | 386 | (33) | (24) | — | — | (59) | 1,200 |
| Total bonds available for sale | 2,722 | 15 | 21 | 396 | (35) | (99) | 49 | (33) | (21) | 3,015 |
| Other bond securities: | ||||||||||
| Corporate debt | 1 | — | — | — | — | — | — | — | — | 1 |
| RMBS | 50 | 1 | — | — | — | (1) | — | — | — | 50 |
| CLO/ABS | 120 | 1 | — | 1 | — | (1) | 2 | — | — | 123 |
| Total other bond securities | 171 | 2 | — | 1 | — | (2) | 2 | — | — | 174 |
| Equity securities | 35 | 3 | — | 21 | (13) | — | — | — | — | 46 |
| Other invested assets | 76 | — | — | 1 | — | (6) | 1 | — | 21 | 93 |
| Other assets | 129 | — | — | — | — | — | — | — | — | 129 |
| Total | $3,133 | $20 | $21 | $419 | $(48) | $(107) | $52 | $(33) | $— | $3,457 |
| (in millions) | Fair ValueBeginning of Period | Net Realizedand Unrealized(Gains) LossesIncluded in Income(a) | OtherComprehensive(Income) Loss | Purchases | Sales | Issuancesand Settlements(b) | GrossTransfersIn | GrossTransfersOut | Other | FairValueEnd ofPeriod |
|---|---|---|---|---|---|---|---|---|---|---|
| Liabilities: | ||||||||||
| Fortitude Re funds withheld payable | $(79) | $14 | $— | $— | $— | $(120) | $— | $— | $— | $(185) |
| Other liabilities | 100 | (19) | — | — | — | — | — | — | — | 81 |
| Total | $21 | $(5) | $— | $— | $— | $(120) | $— | $— | $— | $(104) |
| (in millions) | Fair ValueBeginning of Year | Net Realizedand UnrealizedGains (Losses)Included in Income(a) | OtherComprehensiveIncome (Loss) | Purchases | Sales | Issuancesand Settlements(b) | GrossTransfersIn | GrossTransfersOut | Other | FairValueEnd ofPeriod |
|---|---|---|---|---|---|---|---|---|---|---|
| Assets: | ||||||||||
| Bonds available for sale: | ||||||||||
| Obligations of states, municipalities and political subdivisions | $4 | $— | $— | $2 | $(1) | $— | $— | $— | $— | $5 |
| Non-U.S. governments | 23 | 1 | — | 3 | (3) | (3) | — | (14) | (7) | — |
| Corporate debt | 113 | 1 | (8) | 6 | (7) | (1) | 9 | (26) | (11) | 76 |
| RMBS | 1,546 | 13 | (41) | 14 | — | (91) | 8 | — | 1 | 1,450 |
| CMBS | 24 | (1) | 1 | — | (8) | (2) | 25 | — | — | 39 |
| CLO/ABS | 1,741 | 2 | (6) | 533 | (136) | (261) | 6 | (19) | (2) | 1,858 |
| Total bonds available for sale | 3,451 | 16 | (54) | 558 | (155) | (358) | 48 | (59) | (19) | 3,428 |
| Other bond securities: | ||||||||||
| RMBS | 51 | — | — | 2 | — | (2) | — | — | 2 | 53 |
| CLO/ABS | 119 | (1) | — | — | (9) | (5) | — | — | 1 | 105 |
| Total other bond securities | 170 | (1) | — | 2 | (9) | (7) | — | — | 3 | 158 |
| Equity securities | 55 | — | — | 30 | (48) | — | — | — | (23) | 14 |
| Other invested assets | 92 | 1 | — | 3 | — | (2) | — | — | 2 | 96 |
| Other assets | 130 | — | — | — | — | — | — | — | (130) | — |
| Total | $3,898 | $16 | $(54) | $593 | $(212) | $(367) | $48 | $(59) | $(167) | $3,696 |
| (in millions) | Fair ValueBeginning of Year | Net Realizedand Unrealized(Gains) LossesIncluded in Income(a) | OtherComprehensive(Income) Loss | Purchases | Sales | Issuancesand Settlements(b) | GrossTransfersIn | GrossTransfersOut | Other | FairValueEnd ofPeriod |
|---|---|---|---|---|---|---|---|---|---|---|
| Liabilities: | ||||||||||
| Fortitude Re funds withheld payable | $(92) | $41 | $— | $— | $— | $(24) | $— | $— | $— | $(75) |
| Other Liabilities | 73 | 8 | — | — | — | — | — | — | — | 81 |
| Total | $(19) | $49 | $— | $— | $— | $(24) | $— | $— | $— | $6 |
| AIG | Second Quarter 2026 Form 10-Q | 15 |
|---|
| (in millions) | Fair ValueBeginning of Year | Net Realizedand UnrealizedGains (Losses)Included in Income(a) | OtherComprehensiveIncome (Loss) | Purchases | Sales | Issuancesand Settlements(b) | GrossTransfersIn | GrossTransfersOut | Other | FairValueEnd ofPeriod |
|---|---|---|---|---|---|---|---|---|---|---|
| Assets: | ||||||||||
| Bonds available for sale: | ||||||||||
| Obligations of states, municipalities and political subdivisions | $3 | $— | $— | $— | $— | $— | $— | $— | $— | $3 |
| Non-U.S. governments | 7 | — | — | — | — | (1) | — | — | — | 6 |
| Corporate debt | 240 | (8) | 11 | 5 | (6) | (150) | 49 | (32) | 38 | 147 |
| RMBS | 1,894 | 15 | 42 | 8 | (3) | (101) | 3 | (225) | — | 1,633 |
| CMBS | 26 | 1 | 1 | — | (4) | (1) | 4 | (1) | — | 26 |
| CLO/ABS | 840 | 6 | 11 | 532 | (70) | (54) | — | (6) | (59) | 1,200 |
| Total bonds available for sale | 3,010 | 14 | 65 | 545 | (83) | (307) | 56 | (264) | (21) | 3,015 |
| Other bond securities: | ||||||||||
| Corporate debt | 1 | — | — | — | — | — | — | — | — | 1 |
| RMBS | 50 | 2 | — | — | — | (2) | — | — | — | 50 |
| CLO/ABS | 113 | 4 | — | 1 | — | (5) | 33 | (23) | — | 123 |
| Total other bond securities | 164 | 6 | — | 1 | — | (7) | 33 | (23) | — | 174 |
| Equity securities | 15 | 4 | — | 35 | (17) | — | 9 | — | — | 46 |
| Other invested assets | 163 | — | — | 1 | — | (30) | 1 | (63) | 21 | 93 |
| Other assets | 129 | — | — | — | — | — | — | — | — | 129 |
| Total | $3,481 | $24 | $65 | $582 | $(100) | $(344) | $99 | $(350) | $— | $3,457 |
| (in millions) | Fair ValueBeginning of Year | Net Realizedand Unrealized(Gains) LossesIncluded in Income(a) | OtherComprehensive(Income) Loss | Purchases | Sales | Issuancesand Settlements(b) | GrossTransfersIn | GrossTransfersOut | Other | FairValueEnd ofPeriod |
|---|---|---|---|---|---|---|---|---|---|---|
| Liabilities: | ||||||||||
| Fortitude Re funds withheld payable | $(128) | $55 | $— | $— | $— | $(112) | $— | $— | $— | $(185) |
| Other liabilities | 100 | (19) | — | — | — | — | — | — | — | 81 |
| Total | $(28) | $36 | $— | $— | $— | $(112) | $— | $— | $— | $(104) |
(a)Includes Net realized gains (losses) related to assets of $0 million and $10 million for the three months ended June 30, 2026 and 2025, respectively, and $1 million and $1 million for the six months ended June 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 wereno issuances during the three and six months ended June 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 June 30, · Six Months Ended June 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |||||
| (in millions) | Changes inUnrealizedGains(Losses)Included inIncome | Changes inUnrealized Gains(Losses)Included in OtherComprehensiveIncome (Loss) | Changes inUnrealizedGains(Losses)Included inIncome | Changes inUnrealized Gains(Losses)Included in OtherComprehensiveIncome (Loss) | Changes inUnrealizedGains(Losses)Included inIncome | Changes inUnrealized Gains(Losses)Included in OtherComprehensiveIncome (Loss) | Changes inUnrealizedGains(Losses)Included inIncome | Changes inUnrealized Gains(Losses)Included in OtherComprehensiveIncome (Loss) |
| Assets: | ||||||||
| Bonds available for sale: | ||||||||
| Corporate debt | $— | $(5) | $— | $(6) | $— | $(7) | $— | $— |
| RMBS | — | (4) | — | (2) | — | (41) | — | 15 |
| CMBS | — | 1 | — | — | — | — | — | — |
| CLO/ABS | — | (7) | — | 9 | — | (17) | — | 19 |
| Total bonds available for sale | — | (15) | — | 1 | — | (65) | — | 34 |
| Other bond securities: | ||||||||
| RMBS | 1 | — | — | — | 1 | — | 1 | — |
| CLO/ABS | (1) | — | 1 | — | (2) | — | 5 | — |
| Total other bond securities | — | — | 1 | — | (1) | — | 6 | — |
| Equity securities | (1) | — | 2 | — | (3) | — | 2 | — |
| Other invested assets | — | — | (1) | — | 1 | — | (1) | — |
| Total | $(1) | $(15) | $2 | $1 | $(3) | $(65) | $7 | $34 |
| Liabilities: | ||||||||
| Fortitude Re funds withheld payable | $(18) | $— | $(32) | $— | $(1) | $— | $(34) | $— |
| Total | $(18) | $— | $(32) | $— | $(1) | $— | $(34) | $— |
| 16 | AIG | Second Quarter 2026 Form 10-Q |
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 June 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 six months ended June 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.
| June 30, 2026 · December 31, 2025 | |||||
|---|---|---|---|---|---|
| (in millions) | Investment Category Includes | Fair ValueUsing NAVPer Share (orits equivalent) | UnfundedCommitments | Fair ValueUsing NAVPer Share (orits equivalent) | UnfundedCommitments |
| Investment Category* | |||||
| Private equity funds: | |||||
| Leveraged buyout | Debt 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 | $991 | $435 | $1,184 | $527 |
| Real assets | Investments in real estate properties, agricultural and infrastructure assets, including power plants and other energy producing assets | 410 | 74 | 516 | 81 |
| Growth equity | Funds that make investments in established companies for the purpose of growing their businesses | 31 | 13 | 172 | 11 |
| Private equity secondaries | Investments in a pool of diversified funds across sectors and vintage years | 303 | 74 | 71 | 98 |
| Other | Includes multi-strategy funds, co-investments and credit funds in opportunistic and distressed strategies | 1,022 | 481 | 1,147 | 549 |
| Total private equity funds | 2,757 | 1,077 | 3,090 | 1,266 | |
| Hedge funds | Funds 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 direction | 134 | — | 174 | — |
| Total | $2,891 | $1,077 | $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 inone-year ortwo-year increments. Hedge fund investments included above are generally redeemable with a quarter's notice, subject to underlying fund restrictions.
| AIG | Second Quarter 2026 Form 10-Q | 17 |
|---|
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 MonthsEnded June 30, | Gain (Loss) Six MonthsEnded June 30, | |||
|---|---|---|---|---|
| (in millions) | 2026 | 2025 | 2026 | 2025 |
| Other bond securities(a) | $13 | $16 | $10 | $27 |
| Alternative investments(b) | (80) | 63 | (88) | 87 |
| Retained investment in Corebridge(c) | — | 455 | (154) | 664 |
| Total gain (loss) | $(67) | $534 | $(232) | $778 |
(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 and gain/loss on sale of shares 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 Value · CarryingValue | |||||
|---|---|---|---|---|---|
| (in millions) · Level 1 · Level 2 · Level 3 · Total | |||||
| Assets: | |||||
| Mortgage and other loans receivable | $— | $298 | $2,255 | $2,553 | $2,599 |
| Other invested assets | — | 491 | 12 | 503 | 503 |
| Other assets | 17 | — | — | 17 | 17 |
| Liabilities: | |||||
| Long-term debt | — | 8,562 | — | 8,562 | 8,973 |
| Assets: | |||||
|---|---|---|---|---|---|
| Mortgage and other loans receivable | $— | $334 | $2,500 | $2,834 | $2,887 |
| Other invested assets | — | 480 | 13 | 493 | 493 |
| Other assets | 16 | — | — | 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.
| 18 | AIG | Second Quarter 2026 Form 10-Q |
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