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Segment Information
 9 Months Ended
Sep. 30, 2024
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 Company’s CODM reviews the business to assess performance and allocate resources.

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.
•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, the adjusted operating income (loss) segment measure differs from GAAP in other 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) the insurance subsidiaries’ 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 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 alternative investments are accounted for as CIVs, which 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 does not report assets by reportable segment as the CODM does not assess performance and allocate resources based on assets.

The Insurance segment primarily consists of the adjusted operating income (loss) of: (i) the Company’s insurance subsidiaries; and (ii) AGAS.

Prior to July 1, 2023, the Asset Management segment consisted of the adjusted operating income (loss) of AssuredIM, which provided asset management services to third-party investors, as well as to the Company. Since July 2023, the Company participates in the asset management business through its ownership interest in Sound Point as described in Note 1, Business and Basis of Presentation. Beginning in the third quarter 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; (ii) other corporate operating expenses of AGL and the U.S. Holding Companies, and (iii) beginning in third quarter 2024, equity in earnings from certain alternative investments that were transferred from AG to AGMH as part of the share redemption that occurred on August 5, 2024. The Corporate division also included the gain associated with the Sound Point and the AHP transactions in third quarter 2023 and nine months 2023.
    
The Other category in the tables below 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 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
Third Quarter
20242023
InsuranceAsset ManagementInsuranceAsset Management
(in millions)
Third-party revenues$202 $1 $206 $— 
Intersegment revenues2 1 2 — 
Segment revenues204 2 208 — 
Segment expenses28 2 165 — 
Segment equity in earnings (losses) of investees28 4 25 — 
Less: Segment provision (benefit) for income taxes42 — 9 — 
Segment adjusted operating income (loss)$162 $4 $59 $— 
Nine Months
20242023
InsuranceAsset ManagementInsuranceAsset Management
(in millions)
Third-party revenues$615 $8 $615 $44 
Intersegment revenues7 2 7 27 
Segment revenues622 10 622 71 
Segment expenses183 6 354 75 
Segment equity in earnings (losses) of investees83 2 60 — 
Less: Segment provision (benefit) for income taxes95 1 46 (1)
Segment adjusted operating income (loss)$427 $5 $282 $(3)

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 September 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$204 $28 $28 $42 $— $162 
Asset Management2 2 4 — — 4 
Total segments206 30 32 42 — 166 
Corporate division4 37 — (4)— (29)
Other8 (2)(14)(2)5 (7)
Subtotal218 65 18 36 5 130 
Reconciling items:
Realized gains (losses) on investments— — — — — — 
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives— 2 — — — (2)
Fair value gains (losses) on CCS(3)— — — — (3)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves54 — — — — 54 
Tax effect— — — 8 — (8)
Total consolidated$269 $67 $18 $44 $5 $171 
Reconciliation of Segment Information to Consolidated Information
Three Months Ended September 30, 2023
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$208 $165 $25 $9 $— $59 
Asset Management— — — — — — 
Total segments208 165 25 9 — 59 
Corporate division259 57 — 47 — 155 
Other(4)(3)(7)(2)2 (8)
Subtotal463 219 18 54 2 206 
Reconciling items:
Realized gains (losses) on investments(9)— — — — (9)
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives6 — — — — 6 
Fair value gains (losses) on CCS(20)— — — — (20)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves(37)— — — — (37)
Tax effect— — — (11)— 11 
Total consolidated$403 $219 $18 $43 $2 $157 


Reconciliation of Segment Information to Consolidated Information
Nine Months Ended September 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$622 $183 $83 $95 $— $427 
Asset Management10 6 2 1 — 5 
Total segments632 189 85 96 — 432 
Corporate division13 128 — (14)— (101)
Other28 (12)(38)(2)12 (8)
Subtotal673 305 47 80 12 323 
Reconciling items:
Realized gains (losses) on investments2 — — — — 2 
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives11 — — — — 11 
Fair value gains (losses) on CCS(12)— — — — (12)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves42 — — — — 42 
Tax effect— — — 8 — (8)
Total consolidated$716 $305 $47 $88 $12 $358 
Reconciliation of Segment Information to Consolidated Information
Nine Months Ended September 30, 2023
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$622 $354 $60 $46 $— $282 
Asset Management71 75 — (1)— (3)
Total segments693 429 60 45 — 279 
Corporate division263 165 — 37 — 61 
Other28 12 (35)(8)19 (30)
Subtotal984 606 25 74 19 310 
Reconciling items:
Realized gains (losses) on investments(20)— — — — (20)
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives108 (1)— — — 109 
Fair value gains (losses) on CCS(35)— — — — (35)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves9 — — — — 9 
Tax effect— — — 10 — (10)
Total consolidated$1,046 $605 $25 $84 $19 $363