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Segment Information | 12 Months Ended
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Dec. 31, 2022
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company reports its results of operations in two segments: Insurance and Asset Management, separate from its Corporate division and the effects of consolidating FG VIEs and CIVs, which is consistent with the manner in which the Company’s chief operating decision maker (CODM) reviews the business to assess performance and allocate resources. The Insurance segment primarily consists of: (i) the Company’s insurance subsidiaries; and (ii) AGAS. The Asset Management segment consists of AssuredIM, which provides asset management services to third-party investors as well as to the U.S. Insurance Subsidiaries and AGAS. The Corporate division primarily consists of interest expense on the debt of the U.S. Holding Companies and any losses on extinguishment or repurchases of their debt, as well as other operating expenses attributed to the corporate activities of AGL and the U.S. Holding Companies. The Other category primarily includes the effect of consolidating FG VIEs and CIVs, intersegment eliminations and the reclassification of reimbursable fund expenses. See Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles. The segment results differ from the consolidated financial statements in certain respects. The Insurance segment includes: (i) premiums and losses from the financial guaranty insurance policies issued by the U.S. Insurance Subsidiaries which guarantee the FG VIEs’ debt; and (ii) AGAS’ share of earnings from investments in AssuredIM Funds in “equity in earnings (losses) of investees.” Under GAAP, (i) FG VIEs are consolidated by the U.S. Insurance Subsidiaries and the premiums and losses associated with their financial guaranty policies associated with the FG VIEs’ debt are eliminated, whereas the reconciliation tables below present the FG VIEs and related eliminations in “Other”, and (ii) CIVs are consolidated by AGUS, a U.S. holding company, whereas in the reconciliation tables below, the CIVs and related eliminations of the Insurance segment’s “equity in earnings (losses) of investees” associated with AGAS’ interest in CIVs are presented in “Other.” In addition, under GAAP, reimbursable fund expenses are shown as a component of asset management fees and included in total revenues, whereas in the Asset Management segment in the tables below, they are netted in “segment expenses”. The Company analyzes the operating performance of each segment using “segment adjusted operating income (loss).” Results for each segment 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: •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 unrealized 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, and non-economic payments. •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. •Elimination of 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. The Company does not report assets by reportable segment as the CODM does not assess performance and allocate resources based on assets. 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. Segment Information
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
|  | Insurance |  | Asset Management |  | Insurance |  | Asset Management |  | Insurance |  | Asset Management
|  | (in millions)
Third-party revenues |  | $ | 748 |  |  | $ | 78 |  |  | $ | 724 |  |  | $ | 73 |  |  | $ | 864 |  |  | $ | 61 |
Intersegment revenues |  | 9 |  |  | 34 |  |  | 9 |  |  | 10 |  |  | 10 |  |  | 5 |
Segment revenues |  | 757 |  |  | 112 |  |  | 733 |  |  | 83 |  |  | 874 |  |  | 66 |
Segment expenses |  | 259 |  |  | 119 |  |  | 33 |  |  | 108 |  |  | 446 |  |  | 128 |
Segment equity in earnings (losses) of investees |  | (51) |  |  | — |  |  | 144 |  |  | — |  |  | 61 |  |  | — |
Less: Segment provision (benefit) for income taxes |  | 34 |  |  | (1) |  |  | 122 |  |  | (6) |  |  | 60 |  |  | (12) |
Segment adjusted operating income (loss) |  | $ | 413 |  |  | $ | (6) |  |  | $ | 722 |  |  | $ | (19) |  |  | $ | 429 |  |  | $ | (50) |
Selected components of segment adjusted operating income: |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  | $ | 278 |  |  | $ | — |  |  | $ | 280 |  |  | $ | — |  |  | $ | 310 |  |  | $ | — |
Interest expense |  | 1 |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | — |
Non-cash compensation and operating expenses (1) |  | 41 |  |  | 18 |  |  | 56 |  |  | 17 |  |  | 39 |  |  | 31 |
_____________________ (1) Consists of amortization of DAC and intangible assets, depreciation, share-based compensation (see Note 13, Employee Benefit Plans), write-off of long-lived intangible assets related to MAC licenses (see Note 11, Goodwill and Other Intangible Assets), and lease impairment (see Note 17, Leases). The tables below present a reconciliation of significant components of segment information to the comparable consolidated amounts. Reconciliation of Segment Information to Consolidated Information Year Ended December 31, 2022
|  |  |  |  |  |  | Less: |  | Net Income (Loss) Attributable to AGL
| Revenues |  | Expenses |  | Equity in Earnings (Losses) of Investees |  | Provision (Benefit) for Income Taxes |  | Noncontrolling Interests |
| (in millions)
Segments: |  |  |  |  |  |  |  |  |  |  |
Insurance | $ | 757 |  |  | $ | 259 |  |  | $ | (51) |  |  | $ | 34 |  |  | $ | — |  |  | $ | 413 |
Asset Management | 112 |  |  | 119 |  |  | — |  |  | (1) |  |  | — |  |  | (6) |
Total segments | 869 |  |  | 378 |  |  | (51) |  |  | 33 |  |  | — |  |  | 407 |
Corporate division | 4 |  |  | 143 |  |  | — |  |  | (5) |  |  | — |  |  | (134) |
Other | 14 |  |  | 19 |  |  | 12 |  |  | — |  |  | 13 |  |  | (6) |
Subtotal | 887 |  |  | 540 |  |  | (39) |  |  | 28 |  |  | 13 |  |  | 267 |
Reconciling items: |  |  |  |  |  |  |  |  |  |  |
Realized gains (losses) on investments | (56) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (56) |
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | (22) |  |  | (4) |  |  | — |  |  | — |  |  | — |  |  | (18) |
Fair value gains (losses) on CCS | 24 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 24 |
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | (110) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (110) |
Tax effect | — |  |  | — |  |  | — |  |  | (17) |  |  | — |  |  | 17 |
Total consolidated | $ | 723 |  |  | $ | 536 |  |  | $ | (39) |  |  | $ | 11 |  |  | $ | 13 |  |  | $ | 124 |
Reconciliation of Segment Information to Consolidated Information Year Ended December 31, 2021
|  |  |  |  |  |  | Less: |  | Net Income (Loss) Attributable to AGL
| Revenues |  | Expenses |  | Equity in Earnings (Losses) of Investees |  | Provision (Benefit) for Income Taxes |  | Noncontrolling Interests |
| (in millions)
Segments: |  |  |  |  |  |  |  |  |  |  |
Insurance | $ | 733 |  |  | $ | 33 |  |  | $ | 144 |  |  | $ | 122 |  |  | $ | — |  |  | $ | 722 |
Asset Management | 83 |  |  | 108 |  |  | — |  |  | (6) |  |  | — |  |  | (19) |
Total segments | 816 |  |  | 141 |  |  | 144 |  |  | 116 |  |  | — |  |  | 703 |
Corporate division | 2 |  |  | 312 |  |  | — |  |  | (47) |  |  | — |  |  | (263) |
Other | 142 |  |  | 26 |  |  | (50) |  |  | 6 |  |  | 30 |  |  | 30 |
Subtotal | 960 |  |  | 479 |  |  | 94 |  |  | 75 |  |  | 30 |  |  | 470 |
Reconciling items: |  |  |  |  |  |  |  |  |  |  |
Realized gains (losses) on investments | 15 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 15 |
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | (78) |  |  | (14) |  |  | — |  |  | — |  |  | — |  |  | (64) |
Fair value gains (losses) on CCS | (28) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (28) |
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | (21) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (21) |
Tax effect | — |  |  | — |  |  | — |  |  | (17) |  |  | — |  |  | 17 |
Total consolidated | $ | 848 |  |  | $ | 465 |  |  | $ | 94 |  |  | $ | 58 |  |  | $ | 30 |  |  | $ | 389 |
Reconciliation of Segment Information to Consolidated Information Year Ended December 31, 2020
|  |  |  |  |  |  | Less: |  | Net Income (Loss) Attributable to AGL
| Revenues |  | Expenses |  | Equity in Earnings (Losses) of Investees |  | Provision (Benefit) for Income Taxes |  | Noncontrolling Interests |
| (in millions)
Segments: |  |  |  |  |  |  |  |  |  |  |
Insurance | $ | 874 |  |  | $ | 446 |  |  | $ | 61 |  |  | $ | 60 |  |  | $ | — |  |  | $ | 429 |
Asset Management | 66 |  |  | 128 |  |  | — |  |  | (12) |  |  | — |  |  | (50) |
Total segments | 940 |  |  | 574 |  |  | 61 |  |  | 48 |  |  | — |  |  | 379 |
Corporate division | 9 |  |  | 132 |  |  | (6) |  |  | (18) |  |  | — |  |  | (111) |
Other | 40 |  |  | 21 |  |  | (28) |  |  | (3) |  |  | 6 |  |  | (12) |
Subtotal | 989 |  |  | 727 |  |  | 27 |  |  | 27 |  |  | 6 |  |  | 256 |
Reconciling items: |  |  |  |  |  |  |  |  |  |  |
Realized gains (losses) on investments | 18 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 18 |
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 67 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | 65 |
Fair value gains (losses) on CCS | (1) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1) |
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | 42 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 42 |
Tax effect | — |  |  | — |  |  | — |  |  | 18 |  |  | — |  |  | (18) |
Total consolidated | $ | 1,115 |  |  | $ | 729 |  |  | $ | 27 |  |  | $ | 45 |  |  | $ | 6 |  |  | $ | 362 |
Supplemental Information Year Ended December 31, 2022
| Net Earned Premiums |  | Net Investment Income |  | Loss and LAE (Benefit) |  | Amortization of DAC |  | Other Expenses(1)
| (in millions)
Segments: |  |  |  |  |  |  |  |  |
Insurance | $ | 497 |  |  | $ | 278 |  |  | $ | 12 |  |  | $ | 14 |  |  | $ | 232 |
Asset Management | — |  |  | — |  |  | — |  |  | — |  |  | 118 |
Total segments | 497 |  |  | 278 |  |  | 12 |  |  | 14 |  |  | 350 |
Corporate division | — |  |  | 4 |  |  | — |  |  | — |  |  | 54 |
Other | (3) |  |  | (13) |  |  | 8 |  |  | — |  |  | 21 |
Subtotal | 494 |  |  | 269 |  |  | 20 |  |  | 14 |  |  | 425 |
Reconciling items: |  |  |  |  |  |  |  |  |
Credit derivative impairment (recoveries) (2) | — |  |  | — |  |  | (4) |  |  | — |  |  | — |
Total consolidated | $ | 494 |  |  | $ | 269 |  |  | $ | 16 |  |  | $ | 14 |  |  | $ | 425 |
_____________________ (1) Consists of “employee compensation and benefit expenses” and “other operating expenses.” Includes non-cash compensation and operating expenses of $41 million for Insurance segment, $18 million for Asset Management segment, and $13 million for Corporate division. (2) Credit derivative impairment (recoveries) are included in “fair value gains (losses) on credit derivatives” in the Company’s consolidated statements of operations, and in loss and LAE (benefit) on a segment basis. Supplemental Information Year Ended December 31, 2021
| Net Earned Premiums |  | Net Investment Income |  | Loss and LAE (Benefit) |  | Amortization of DAC |  | Other Expenses(1)
| (in millions)
Segments: |  |  |  |  |  |  |  |  |
Insurance | $ | 418 |  |  | $ | 280 |  |  | $ | (221) |  |  | $ | 14 |  |  | $ | 240 |
Asset Management | — |  |  | — |  |  | — |  |  | — |  |  | 107 |
Total segments | 418 |  |  | 280 |  |  | (221) |  |  | 14 |  |  | 347 |
Corporate division | — |  |  | 2 |  |  | — |  |  | — |  |  | 41 |
Other | (4) |  |  | (13) |  |  | 15 |  |  | — |  |  | 21 |
Subtotal | 414 |  |  | 269 |  |  | (206) |  |  | 14 |  |  | 409 |
Reconciling items: |  |  |  |  |  |  |  |  |
Credit derivative impairment (recoveries) (2) | — |  |  | — |  |  | (14) |  |  | — |  |  | — |
Total consolidated | $ | 414 |  |  | $ | 269 |  |  | $ | (220) |  |  | $ | 14 |  |  | $ | 409 |
_____________________ (1) Consists of “employee compensation and benefit expenses” and “other operating expenses.” Includes non-cash compensation and operating expenses of $56 million for Insurance segment, $17 million for Asset Management segment, and $5 million for Corporate division. (2) Credit derivative impairment (recoveries) are included in “fair value gains (losses) on credit derivatives” in the Company’s consolidated statements of operations, and in loss and LAE (benefit) on a segment basis. Supplemental Information Year Ended December 31, 2020
| Net Earned Premiums |  | Net Investment Income |  | Loss and LAE (Benefit) |  | Amortization of DAC |  | Other Expenses(1)
| (in millions)
Segments: |  |  |  |  |  |  |  |  |
Insurance | $ | 490 |  |  | $ | 310 |  |  | $ | 204 |  |  | $ | 16 |  |  | $ | 226 |
Asset Management | — |  |  | — |  |  | — |  |  | — |  |  | 128 |
Total segments | 490 |  |  | 310 |  |  | 204 |  |  | 16 |  |  | 354 |
Corporate division | — |  |  | 2 |  |  | — |  |  | — |  |  | 37 |
Other | (5) |  |  | (15) |  |  | (3) |  |  | — |  |  | 34 |
Subtotal | 485 |  |  | 297 |  |  | 201 |  |  | 16 |  |  | 425 |
Reconciling items: |  |  |  |  |  |  |  |  |
Credit derivative impairment (recoveries) (2) | — |  |  | — |  |  | 2 |  |  | — |  |  | — |
Total consolidated | $ | 485 |  |  | $ | 297 |  |  | $ | 203 |  |  | $ | 16 |  |  | $ | 425 |
_____________________ (1) Consists of “employee compensation and benefit expenses” and “other operating expenses.” Includes non-cash compensation and operating expenses of $39 million for Insurance segment, $31 million for Asset Management segment, and $6 million for Corporate division. (2) Credit derivative impairment (recoveries) are included in “fair value gains (losses) on credit derivatives” in the Company’s consolidated statements of operations, and in loss and LAE (benefit) on a segment basis. The table below summarizes revenues for the operating segments, Corporate division and Other category by country of domicile for each period indicated, based on the country of domicile of the Company’s subsidiaries that generated the revenues. Segment, Corporate Division and Other Revenues by Country of Domicile
|  | Year Ended December 31,
Country of Domicile |  | 2022 |  | 2021 |  | 2020
|  | (in millions)
U.S. |  | $ | 727 |  |  | $ | 762 |  |  | $ | 788 |
Bermuda |  | 129 |  |  | 153 |  |  | 155 |
U.K. |  | 32 |  |  | 42 |  |  | 38 |
Other |  | (1) |  |  | 3 |  |  | 8 |
Total |  | $ | 887 |  |  | $ | 960 |  |  | $ | 989 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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