XML 34 R12.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2023
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company reports its results of operations in two segments: Insurance and Asset Management. The Company also 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 Company’s 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. Prior to July 1, 2023, the Asset Management segment consisted of AssuredIM, which provided asset management services to third-party investors, the U.S. Insurance Subsidiaries, and AGAS. Beginning in July 2023, the Company participates in the asset management business through its investment in Sound Point as described in Note 1, Business and Basis of Presentation. Beginning in the third quarter of 2023, the Asset Management segment primarily includes the results of the Company’s equity method investment in Sound Point. The Corporate division primarily consists of (i) interest expense and any losses on the extinguishment of the U.S. Holding Companies’ debt and (ii) other corporate operating expenses of AGL and the U.S. Holding Companies. The Corporate Division also includes the gain associated with the Sound Point Transaction and the AHP Transaction. The Other category primarily includes the effect of consolidating FG VIEs, CIVs, intersegment eliminations and, prior to July 1, 2023, 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 that guarantee the FG VIEs’ debt; and (ii) AGAS’ share of earnings from investments in funds managed by Sound Point (prior to July 1, 2023, AssuredIM) and AHP 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/recoveries associated with the financial guaranty policies associated with the FG VIEs’ debt are eliminated (the reconciliation tables below present the FG VIEs and related eliminations in “other”) and (ii) CIVs are consolidated by either AGUS or AGAS (in the reconciliation tables below, the CIVs and related eliminations of the Insurance segment’s “equity in earnings (losses) of investees” associated with AGAS’ ownership interest in CIVs are presented in “other”). Until July 1, 2023, under GAAP, reimbursable fund expenses were shown as a component of asset management fees and included in total revenues, whereas in the Asset Management segment in the tables below these expenses were 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, 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 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,
|  | 2023 |  | 2022 |  | 2021
|  | Insurance |  | Asset Management |  | Insurance |  | Asset Management |  | Insurance |  | Asset Management
|  | (in millions)
Third-party revenues |  | $ | 845 |  |  | $ | 49 |  |  | $ | 748 |  |  | $ | 78 |  |  | $ | 724 |  |  | $ | 73 |
Intersegment revenues |  | 10 |  |  | 27 |  |  | 9 |  |  | 34 |  |  | 9 |  |  | 10 |
Segment revenues |  | 855 |  |  | 76 |  |  | 757 |  |  | 112 |  |  | 733 |  |  | 83 |
Segment expenses |  | 435 |  |  | 78 |  |  | 259 |  |  | 119 |  |  | 33 |  |  | 108 |
Segment equity in earnings (losses) of investees |  | 82 |  |  | 5 |  |  | (51) |  |  | — |  |  | 144 |  |  | — |
Less: Segment provision (benefit) for income taxes |  | (119) |  |  | — |  |  | 34 |  |  | (1) |  |  | 122 |  |  | (6) |
Segment adjusted operating income (loss) |  | $ | 621 |  |  | $ | 3 |  |  | $ | 413 |  |  | $ | (6) |  |  | $ | 722 |  |  | $ | (19) |
Selected components of segment adjusted operating income: |  |  |  |  |  |  |  |  |  |  |  |
Net investment income |  | $ | 370 |  |  | $ | — |  |  | $ | 278 |  |  | $ | — |  |  | $ | 280 |  |  | $ | — |
Interest expense |  | — |  |  | 1 |  |  | 1 |  |  | 1 |  |  | — |  |  | 1 |
Non-cash compensation and operating expenses (1) |  | 38 |  |  | 8 |  |  | 41 |  |  | 18 |  |  | 56 |  |  | 17 |
_____________________ (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 Municipal Assurance Corp.(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, 2023
|  |  |  |  |  |  | Less: |  | Net Income (Loss) Attributable to AGL
| Revenues |  | Expenses |  | Equity in Earnings (Losses) of Investees |  | Provision (Benefit) for Income Taxes (1) |  | Noncontrolling Interests |
| (in millions)
Segments: |  |  |  |  |  |  |  |  |  |  |
Insurance | $ | 855 |  |  | $ | 435 |  |  | $ | 82 |  |  | $ | (119) |  |  | $ | — |  |  | $ | 621 |
Asset Management | 76 |  |  | 78 |  |  | 5 |  |  | — |  |  | — |  |  | 3 |
Total segments | 931 |  |  | 513 |  |  | 87 |  |  | (119) |  |  | — |  |  | 624 |
Corporate division | 275 |  |  | 216 |  |  | — |  |  | 14 |  |  | — |  |  | 45 |
Other | 61 |  |  | 6 |  |  | (59) |  |  | (5) |  |  | 22 |  |  | (21) |
Subtotal | 1,267 |  |  | 735 |  |  | 28 |  |  | (110) |  |  | 22 |  |  | 648 |
Reconciling items: |  |  |  |  |  |  |  |  |  |  |
Realized gains (losses) on investments | (14) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (14) |
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 104 |  |  | (2) |  |  | — |  |  | — |  |  | — |  |  | 106 |
Fair value gains (losses) on CCS | (35) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (35) |
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | 51 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 51 |
Tax effect | — |  |  | — |  |  | — |  |  | 17 |  |  | — |  |  | (17) |
Total consolidated | $ | 1,373 |  |  | $ | 733 |  |  | $ | 28 |  |  | $ | (93) |  |  | $ | 22 |  |  | $ | 739 |
_____________________ (1) Includes $189 million of tax benefit related to a Bermuda tax law change, which is included in Insurance segment. See Note 14, Income Taxes. 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 |
Supplemental Information Year Ended December 31, 2023
| Net Earned Premiums |  | Net Investment Income |  | Loss and LAE (Benefit) |  | Amortization of DAC |  | Other Expenses(1)
| (in millions)
Segments: |  |  |  |  |  |  |  |  |
Insurance | $ | 347 |  |  | $ | 370 |  |  | $ | 161 |  |  | $ | 13 |  |  | $ | 261 |
Asset Management | — |  |  | — |  |  | — |  |  | — |  |  | 77 |
Total segments | 347 |  |  | 370 |  |  | 161 |  |  | 13 |  |  | 338 |
Corporate division | — |  |  | 8 |  |  | — |  |  | — |  |  | 117 |
Other | (3) |  |  | (13) |  |  | 3 |  |  | — |  |  | 13 |
Subtotal | 344 |  |  | 365 |  |  | 164 |  |  | 13 |  |  | 468 |
Reconciling items: |  |  |  |  |  |  |  |  |
Credit derivative impairment (recoveries) (2) | — |  |  | — |  |  | (2) |  |  | — |  |  | — |
Total consolidated | $ | 344 |  |  | $ | 365 |  |  | $ | 162 |  |  | $ | 13 |  |  | $ | 468 |
_____________________ (1) Consists of “employee compensation and benefit expenses” and “other operating expenses.” Includes non-cash compensation and operating expenses of $38 million for Insurance segment, $8 million for Asset Management segment, and $18 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, 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. 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 |  | 2023 |  | 2022 |  | 2021
|  | (in millions)
U.S. |  | $ | 1,064 |  |  | $ | 727 |  |  | $ | 762 |
Bermuda |  | 166 |  |  | 129 |  |  | 153 |
U.K. |  | 36 |  |  | 32 |  |  | 42 |
Other |  | 1 |  |  | (1) |  |  | 3 |
Total |  | $ | 1,267 |  |  | $ | 887 |  |  | $ | 960 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration