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Investments | 12 Months Ended
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Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
Investments | 6. Investments FIXED MATURITY SECURITIES Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or the fair value option has been elected. None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2024 or 2023. Unrealized gains and losses from available for sale investments in fixed maturity securities carried at fair value were reported as a separate component of AOCI, net of deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity securities for which the fair value option has been elected are reflected in Net investment income. Investments in fixed maturity securities are recorded on a trade-date basis. Interest income is recognized using the effective yield method and reflects amortization of premium and accretion of discount. Premiums and discounts arising from the purchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain structured securities, recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that are not high credit quality, the structured securities yields are based on expected cash flows which take into account both expected credit losses and prepayments. An allowance for credit losses is not established upon initial recognition of the asset (unless the security is determined to be a purchased credit deteriorated (PCD) asset which is discussed in more detail below). Subsequently, differences between actual and expected cash flows and changes in expected cash flows are recognized as adjustments to the allowance for credit losses. Changes that cannot be reflected as adjustments to the allowance for credit losses are accounted for as prospective adjustments to yield. SECURITIES AVAILABLE FOR SALE The following table presents the amortized cost and fair value of our available for sale securities:
(in millions) |  | Amortized Cost |  | Allowance for Credit Losses(a) |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
December 31, 2024 |  |  |  |  |  |  |  |  |  |
Bonds available for sale: |  |  |  |  |  |  |  |  |  |
U.S. government and government sponsored entities | $ | 3,346 |  | $ | — |  | $ | 20 |  | $ | (99) |  | $ | 3,267 |
Obligations of states, municipalities and political subdivisions |  | 3,223 |  |  | — |  |  | 32 |  |  | (112) |  |  | 3,143 |
Non-U.S. governments |  | 8,644 |  |  | (1) |  |  | 54 |  |  | (590) |  |  | 8,107 |
Corporate debt |  | 33,031 |  |  | (28) |  |  | 581 |  |  | (1,758) |  |  | 31,826 |
Mortgage-backed, asset-backed and collateralized: |  |  |  |  |  |  |  |  |  |
RMBS |  | 8,820 |  |  | (6) |  |  | 209 |  |  | (419) |  |  | 8,604 |
CMBS |  | 3,988 |  |  | (3) |  |  | 32 |  |  | (91) |  |  | 3,926 |
CLO/ABS |  | 5,143 |  |  | — |  |  | 34 |  |  | (44) |  |  | 5,133 |
Total mortgage-backed, asset-backed and collateralized |  | 17,951 |  |  | (9) |  |  | 275 |  |  | (554) |  |  | 17,663 |
Total bonds available for sale(b) | $ | 66,195 |  | $ | (38) |  | $ | 962 |  | $ | (3,113) |  | $ | 64,006 |
December 31, 2023 |  |  |  |  |  |  |  |  |  |
Bonds available for sale: |  |  |  |  |  |  |  |  |  |
U.S. government and government sponsored entities | $ | 4,444 |  | $ | — |  | $ | 40 |  | $ | (89) |  | $ | 4,395 |
Obligations of states, municipalities and political subdivisions |  | 4,930 |  |  | — |  |  | 60 |  |  | (157) |  |  | 4,833 |
Non-U.S. governments |  | 8,973 |  |  | (1) |  |  | 94 |  |  | (670) |  |  | 8,396 |
Corporate debt |  | 34,013 |  |  | (20) |  |  | 606 |  |  | (2,253) |  |  | 32,346 |
Mortgage-backed, asset-backed and collateralized: |  |  |  |  |  |  |  |  |  |
RMBS |  | 6,423 |  |  | (9) |  |  | 219 |  |  | (426) |  |  | 6,207 |
CMBS |  | 4,326 |  |  | (4) |  |  | 23 |  |  | (198) |  |  | 4,147 |
CLO/ABS |  | 5,010 |  |  | — |  |  | 31 |  |  | (123) |  |  | 4,918 |
Total mortgage-backed, asset-backed and collateralized |  | 15,759 |  |  | (13) |  |  | 273 |  |  | (747) |  |  | 15,272 |
Total bonds available for sale(b) | $ | 68,119 |  | $ | (34) |  | $ | 1,073 |  | $ | (3,916) |  | $ | 65,242 |
(a)Represents the allowance for credit losses that has been recognized. Changes in the allowance for credit losses are recorded through Net realized gains (losses) and are not recognized in OCI. (b)At December 31, 2024 and 2023, the fair value of bonds available for sale held by us that were below investment grade or not rated totaled $3.6 billion or 6 percent and $5.2 billion or 8 percent, respectively. Securities Available for Sale in a Loss Position for Which No Allowance for Credit Loss Has Been Recorded The following table summarizes the fair value and gross unrealized losses on our available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit loss has been recorded:
|  | Less than 12 Months |  | 12 Months or More |  | Total
(in millions) |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Bonds available for sale: |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and government sponsored entities | $ | 1,718 |  | $ | 21 |  | $ | 358 |  | $ | 78 |  | $ | 2,076 |  | $ | 99 |
Obligations of states, municipalities and political subdivisions |  | 1,502 |  |  | 33 |  |  | 586 |  |  | 79 |  |  | 2,088 |  |  | 112 |
Non-U.S. governments |  | 1,964 |  |  | 55 |  |  | 3,446 |  |  | 534 |  |  | 5,410 |  |  | 589 |
Corporate debt |  | 10,347 |  |  | 234 |  |  | 10,907 |  |  | 1,515 |  |  | 21,254 |  |  | 1,749 |
RMBS |  | 3,711 |  |  | 58 |  |  | 2,147 |  |  | 343 |  |  | 5,858 |  |  | 401 |
CMBS |  | 1,052 |  |  | 18 |  |  | 992 |  |  | 71 |  |  | 2,044 |  |  | 89 |
CLO/ABS |  | 1,368 |  |  | 9 |  |  | 315 |  |  | 35 |  |  | 1,683 |  |  | 44 |
Total bonds available for sale | $ | 21,662 |  | $ | 428 |  | $ | 18,751 |  | $ | 2,655 |  | $ | 40,413 |  | $ | 3,083 |
|  | Less than 12 Months |  | 12 Months or More |  | Total
(in millions) |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Bonds available for sale: |  |  |  |  |  |  |  |  |  |  |  |
U.S. government and government sponsored entities | $ | 1,027 |  | $ | 10 |  | $ | 804 |  | $ | 79 |  | $ | 1,831 |  | $ | 89 |
Obligations of states, municipalities and political subdivisions |  | 850 |  |  | 24 |  |  | 1,602 |  |  | 133 |  |  | 2,452 |  |  | 157 |
Non-U.S. governments |  | 1,431 |  |  | 87 |  |  | 4,503 |  |  | 583 |  |  | 5,934 |  |  | 670 |
Corporate debt |  | 4,089 |  |  | 171 |  |  | 18,612 |  |  | 2,070 |  |  | 22,701 |  |  | 2,241 |
RMBS |  | 1,456 |  |  | 114 |  |  | 2,385 |  |  | 300 |  |  | 3,841 |  |  | 414 |
CMBS |  | 1,024 |  |  | 54 |  |  | 1,622 |  |  | 137 |  |  | 2,646 |  |  | 191 |
CLO/ABS |  | 1,371 |  |  | 33 |  |  | 1,509 |  |  | 90 |  |  | 2,880 |  |  | 123 |
Total bonds available for sale | $ | 11,248 |  | $ | 493 |  | $ | 31,037 |  | $ | 3,392 |  | $ | 42,285 |  | $ | 3,885 |
At December 31, 2024, we held 12,274 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 5,984 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). At December 31, 2023, we held 13,052 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 10,027 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). We did not recognize the unrealized losses in earnings on these fixed maturity securities at December 31, 2024 because it was determined that such losses were due to non-credit factors. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. For fixed maturity securities with significant declines, we performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, liquidity position, expected defaults, industry and sector analysis, forecasts and available market data. Contractual Maturities of Fixed Maturity Securities Available for Sale The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity:
December 31, 2024 |  | Total Fixed Maturity Securities Available for Sale
(in millions) |  | Amortized Cost, Net of Allowance |  | Fair Value
Due in one year or less | $ | 4,070 |  | $ | 3,980 |
Due after one year through five years |  | 22,194 |  |  | 22,163 |
Due after five years through ten years |  | 15,712 |  |  | 15,010 |
Due after ten years |  | 6,239 |  |  | 5,190 |
Mortgage-backed, asset-backed and collateralized |  | 17,942 |  |  | 17,663 |
Total | $ | 66,157 |  | $ | 64,006 |
Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. The following table presents the gross realized gains and gross realized losses from sales or maturities of our available for sale securities:
|  |  | Years Ended December 31,
|  |  |  |  | 2024 |  | 2023 |  | 2022
(in millions) |  |  |  |  |  |  |  |  |  |  |  | Gross Realized Gains |  | Gross Realized Losses |  |  | Gross Realized Gains |  | Gross Realized Losses |  |  | Gross Realized Gains |  | Gross Realized Losses
Fixed maturity securities |  |  |  |  |  |  |  |  |  |  | $ | 81 | $ | 700 |  | $ | 130 | $ | 865 |  | $ | 281 | $ | 929
For the years ended December 31, 2024, 2023 and 2022, the aggregate fair value of available for sale securities sold was $13.7 billion, $15.7 billion and $10.5 billion, respectively, which resulted in net realized gains (losses) of $(619) million, $(735) million and $(648) million, respectively. Included within the net realized gains (losses) are $(36) million, $(67) million and $(83) million of net realized gains (losses) for the years ended December 31, 2024, 2023 and 2022, respectively, which relate to Fortitude Re funds withheld assets. These net realized gains (losses) are included in Net realized gains (losses) on Fortitude Re funds withheld assets. OTHER SECURITIES MEASURED AT FAIR VALUE The following table presents the fair value of fixed maturity securities measured at fair value based on our election of the fair value option, which are reported in the other bond securities caption in the financial statements, and equity securities measured at fair value:
(in millions) |  | December 31, 2024 |  |  |  | December 31, 2023 |
| Fair Value |  | Percent of Total |  |  |  | Fair Value |  | Percent of Total |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |
Obligations of states, municipalities and political subdivisions | $ | 50 |  |  | 3 |  | % |  | $ | 51 |  |  | 4 |  | %
Non-U.S. governments |  | 24 |  |  | 2 |  |  |  |  | 24 |  |  | 2 |  |
Corporate debt |  | 282 |  |  | 19 |  |  |  |  | 255 |  |  | 19 |  |
Mortgage-backed, asset-backed and collateralized: |  |  |  |  |  |  |  |  |  |  |
RMBS |  | 100 |  |  | 7 |  |  |  |  | 93 |  |  | 7 |  |
CMBS |  | 43 |  |  | 3 |  |  |  |  | 33 |  |  | 2 |  |
CLO/ABS and other collateralized securities |  | 246 |  |  | 17 |  |  |  |  | 207 |  |  | 16 |  |
Total mortgage-backed, asset-backed and collateralized |  | 389 |  |  | 27 |  |  |  |  | 333 |  |  | 25 |  |
Total fixed maturity securities |  | 745 |  |  | 51 |  |  |  |  | 663 |  |  | 50 |  |
Equity securities |  | 704 |  |  | 49 |  |  |  |  | 665 |  |  | 50 |  |
Total | $ | 1,449 |  |  | 100 |  | % |  | $ | 1,328 |  |  | 100 |  | %
OTHER INVESTED ASSETS The following table summarizes the carrying amounts of other invested assets:
(in millions) | December 31, 2024 |  | December 31, 2023
Alternative investments(a) | $ | 4,032 |  |  | $ | 4,345 |
Retained investment in Corebridge using fair value option | 3,810 |  |  | — |
All other investments(b) | 1,986 |  |  | 2,023 |
Total | $ | 9,828 |  |  | $ | 6,368 |
(a)At December 31, 2024, includes hedge funds of $187 million and private equity funds of $3.6 billion. At December 31, 2023, included hedge funds of $411 million and private equity funds of $3.7 billion. Private equity funds investments include limited partnerships, direct equities and real estate partnerships. Also includes investments in real estate, net of accumulated depreciation. At December 31, 2024 and 2023, the accumulated depreciation was $161 million and $161 million, respectively. (b)All other investments include mainly bank deposits with a maturity greater than one year and investments in joint ventures with strategic partners. Other Invested Assets Carried at Fair Value Certain hedge funds, private equity funds, and other investment partnerships for which we have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income. Other Invested Assets – Equity Method Investments We account for hedge funds, private equity funds and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating and financial policies, or we have elected the fair value option. Under the equity method of accounting, our carrying amount generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income. In applying the equity method of accounting, we consistently use the most recently available financial information provided by the general partner or manager of each of these investments. Hedge funds are reported as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag. The financial statements of these investees are generally audited annually. The carrying amount of equity method investments totaled $6.6 billion and $3.0 billion as of December 31, 2024 and 2023, respectively. Summarized Financial Information of Equity Method Investees The following is the aggregated summarized financial information of our equity method investees, including those for which the fair value option has been elected:
Years Ended December 31, |  |  |  |  |  |
(in millions) |  | 2024* |  | 2023 |  | 2022
Operating results: |  |  |  |  |  |
Total revenues | $ | 21,860 |  | $ | 2,320 |  | $ | 6,486 |
Total expenses |  | (18,557) |  |  | (1,668) |  |  | (1,832) |
Income before income taxes | $ | 3,303 |  | $ | 652 |  | $ | 4,654 |
At December 31, |  |  |  |  |  |
(in millions) |  |  |  | 2024* |  | 2023
Balance sheet: |  |  |  |  |  |
Total assets |  |  | $ | 418,639 |  | $ | 28,264 |
Total liabilities |  |  | $ | (383,643) |  | $ | (5,196) |
*2024 includes investment in Corebridge. Other Investments Also included in Other invested assets are real estate held for investment. These investments are reported at cost, less depreciation and are subject to impairment review, as discussed below. NET INVESTMENT INCOME Net investment income represents income primarily from the following sources: •Interest income and related expenses, including amortization of premiums and accretion of discounts with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable. •Dividend income from common and preferred stocks. •Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option. •Earnings from alternative investments. •Prepayment premiums. The following table presents the components of Net investment income:
Years Ended December 31, | 2024 |  | 2023 |  | 2022
(in millions) | Excluding Fortitude Re Funds Withheld Assets | Fortitude Re Funds Withheld Assets | Total |  | Excluding Fortitude Re Funds Withheld Assets | Fortitude Re Funds Withheld Assets | Total |  | Excluding Fortitude Re Funds Withheld Assets | Fortitude Re Funds Withheld Assets | Total
Available for sale fixed maturity securities, including short-term investments | $ | 2,989 |  | $ | 89 |  | $ | 3,078 |  |  | $ | 2,862 |  | $ | 95 |  | $ | 2,957 |  |  | $ | 1,960 |  | $ | 113 |  | $ | 2,073 |
Other fixed maturity securities(a) |  | — |  |  | 19 |  |  | 19 |  |  |  | 3 |  |  | 43 |  |  | 46 |  |  |  | (282) |  |  | (92) |  |  | (374) |
Equity securities |  | 149 |  |  | — |  |  | 149 |  |  |  | 53 |  |  | — |  |  | 53 |  |  |  | 29 |  |  | — |  |  | 29 |
Interest on mortgage and other loans |  | 229 |  |  | 32 |  |  | 261 |  |  |  | 283 |  |  | 38 |  |  | 321 |  |  |  | 264 |  |  | 27 |  |  | 291 |
Alternative investments(b) |  | 196 |  |  | — |  |  | 196 |  |  |  | 199 |  |  | — |  |  | 199 |  |  |  | 315 |  |  | — |  |  | 315 |
Other investments(c)(d) |  | 727 |  |  | 4 |  |  | 731 |  |  |  | 101 |  |  | 4 |  |  | 105 |  |  |  | 211 |  |  | 5 |  |  | 216 |
Total investment income |  | 4,290 |  |  | 144 |  |  | 4,434 |  |  |  | 3,501 |  |  | 180 |  |  | 3,681 |  |  |  | 2,497 |  |  | 53 |  |  | 2,550 |
Investment expenses |  | 179 |  |  | — |  |  | 179 |  |  |  | 235 |  |  | — |  |  | 235 |  |  |  | 180 |  |  | — |  |  | 180 |
Net investment income | $ | 4,111 |  | $ | 144 |  | $ | 4,255 |  |  | $ | 3,266 |  | $ | 180 |  | $ | 3,446 |  |  | $ | 2,317 |  | $ | 53 |  | $ | 2,370 |
(a)Included in the year ended December 31, 2022 was losses of $195 million related to fixed maturity securities measured at fair value that economically hedge liabilities described in (c) below. (b)Includes income from hedge funds, private equity funds and real estate investments. Hedge funds are recorded as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag. (c)Included in the year ended December 31, 2022 was income of $186 million related to liabilities measured at fair value that are economically hedged with fixed maturity securities as described in (a) above. (d)Includes dividends received from Corebridge, changes in its stock price and gain on sale of shares of $162 million and $439 million, respectively, for the year ended December 31, 2024. NET REALIZED GAINS AND LOSSES Net realized gains and losses are determined by specific identification. The net realized gains and losses are generated primarily from the following sources: •Sales of available for sale fixed maturity securities, real estate and other alternative investments. •Reductions to the amortized cost basis of available for sale fixed maturity securities that have been written down due to our intent to sell them or it being more likely than not that we will be required to sell them. •Changes in the allowance for credit losses on bonds available for sale, mortgage and other loans receivable, and loans commitments. •Most changes in the fair value of free standing and embedded derivatives, including changes in the non-performance adjustment are included in Net realized gains (losses). However, changes in derivatives designated as hedging instruments when the fair value of the hedged item is not reported in Net realized gains (losses) are excluded from Net realized gains (losses). •Foreign exchange gains and losses resulting from foreign currency transactions. •Changes in fair value of the embedded derivative related to the Fortitude Re funds withheld assets. The following table presents the components of Net realized gains (losses):
Years Ended December 31, | 2024 |  | 2023 |  | 2022
(in millions) | Excluding Fortitude Re Funds Withheld Assets | Fortitude Re Funds Withheld Assets |  | Total |  | Excluding Fortitude Re Funds Withheld Assets | Fortitude Re Funds Withheld Assets |  | Total |  | Excluding Fortitude Re Funds Withheld Assets | Fortitude Re Funds Withheld Assets |  | Total
Sales of fixed maturity securities | $ | (583) |  | $ | (36) |  | $ | (619) |  |  | $ | (668) |  | $ | (67) |  | $ | (735) |  |  | $ | (565) |  | $ | (83) |  | $ | (648) |
Intent to sell |  | — |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  |  | (66) |  |  | — |  |  | (66) |
Change in allowance for credit losses on fixed maturity securities |  | (25) |  |  | — |  |  | (25) |  |  |  | (44) |  |  | — |  |  | (44) |  |  |  | (72) |  |  | — |  |  | (72) |
Change in allowance for credit losses on loans |  | (23) |  |  | — |  |  | (23) |  |  |  | (28) |  |  | 3 |  |  | (25) |  |  |  | 19 |  |  | (3) |  |  | 16 |
Foreign exchange transactions |  | 256 |  |  | (9) |  |  | 247 |  |  |  | 124 |  |  | 5 |  |  | 129 |  |  |  | 266 |  |  | (10) |  |  | 256 |
All other derivatives and hedge accounting |  | (62) |  |  | 7 |  |  | (55) |  |  |  | (165) |  |  | (8) |  |  | (173) |  |  |  | 159 |  |  | (3) |  |  | 156 |
Sales of alternative investments |  | (16) |  |  | — |  |  | (16) |  |  |  | 29 |  |  | — |  |  | 29 |  |  |  | 15 |  |  | — |  |  | 15 |
Other |  | 19 |  |  | (1) |  |  | 18 |  |  |  | 18 |  |  | (4) |  |  | 14 |  |  |  | 37 |  |  | — |  |  | 37 |
Net realized losses – excluding Fortitude Re funds withheld embedded derivative |  | (434) |  |  | (39) |  |  | (473) |  |  |  | (734) |  |  | (71) |  |  | (805) |  |  |  | (207) |  |  | (99) |  |  | (306) |
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative |  | — |  |  | (75) |  |  | (75) |  |  |  | — |  |  | (273) |  |  | (273) |  |  |  | — |  |  | 1,133 |  |  | 1,133 |
Net realized gains (losses) | $ | (434) |  | $ | (114) |  | $ | (548) |  |  | $ | (734) |  | $ | (344) |  | $ | (1,078) |  |  | $ | (207) |  | $ | 1,034 |  | $ | 827 |
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments:
|  |  | Years Ended December 31,
(in millions) |  |  |  |  |  |  | 2024 |  | 2023
Increase (decrease) in unrealized appreciation (depreciation) of investments: |  |  |  |  |  |  |  |  |
Fixed maturity securities |  |  |  |  |  | $ | 692 |  | $ | 2,463 |
Other investments |  |  |  |  |  |  | — |  |  | — |
Total increase (decrease) in unrealized appreciation (depreciation) of investments* |  |  |  |  |  | $ | 692 |  | $ | 2,463 |
*Excludes net unrealized gains and losses attributable to businesses held for sale or reclassified to discontinued operations at December 31, 2024 and 2023. The following table summarizes the unrealized gains and losses recognized in Net investment income during the reporting period on equity securities and other investments still held at the reporting date:
Years Ended December 31, |  | 2024 |  |  | 2023
(in millions) |  | Equities |  | Other Invested Assets* |  |  |  | Total |  |  | Equities |  | Other Invested Assets |  |  |  | Total
Net gains recognized during the period on equity securities and other investments |  | $ | 149 |  |  | $ | 696 |  |  |  |  | $ | 845 |  |  |  | $ | 53 |  |  | $ | 249 |  |  |  |  | $ | 302 |
Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period |  | 45 |  |  | 461 |  |  |  |  | 506 |  |  |  | 90 |  |  | (20) |  |  |  |  | 70 |
Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date |  | $ | 104 |  |  | $ | 235 |  |  |  |  | $ | 339 |  |  |  | $ | (37) |  |  | $ | 269 |  |  |  |  | $ | 232 |
*Includes unrealized gains (losses) on AIG’s ownership interest in Corebridge and gain on sale of shares of $439 million in the year ended December 31, 2024. EVALUATING INVESTMENTS FOR AN ALLOWANCE FOR CREDIT LOSSES AND IMPAIRMENTS Fixed Maturity Securities If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and if the fair value of the security is below amortized cost, an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to Net realized gains (losses). No allowance is established in these situations and any previously recorded allowance is reversed. The new cost basis is not adjusted for subsequent increases in estimated fair value. When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing. For fixed maturity securities for which a decline in the fair value below the amortized cost is due to credit related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding charge to Net realized gains (losses). The allowance for credit losses is limited to the difference between amortized cost and fair value. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not associated with credit related factors is presented in unrealized appreciation (depreciation) of fixed maturity securities on which an allowance for credit losses was previously recognized (a separate component of AOCI). Accrued interest is excluded from the measurement of the allowance for credit losses. When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CLO, ABS) management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class: •Current delinquency rates; •Expected default rates and the timing of such defaults; •Loss severity and the timing of any recovery; and •Expected prepayment speeds. When estimating future cash flows for corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers: •Expected default rates and the timing of such defaults; •Loss severity and the timing of any recovery; and •Scenarios specific to the issuer and the security, which may also include estimates of outcomes of corporate restructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets. We consider severe price declines in our assessment of potential credit impairments. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models. Under the current expected credit loss (CECL) model, credit losses are reassessed each period. The allowance for credit losses and the corresponding charge to Net realized gains (losses) can be reversed if conditions change, however, the allowance for credit losses will never be reduced below zero. When we determine that all or a portion of a fixed maturity security is uncollectable, the uncollectable amortized cost amount is written off with a corresponding reduction to the allowance for credit losses. If we collect cash flows that were previously written off, the recovery is recognized by recording a gain in Net realized gains (losses). Credit Impairments The following table presents a rollforward of the changes in allowance for credit losses on available for sale fixed maturity securities by major investment category:
Years Ended December 31, | 2024 |  | 2023 |  | 2022
(in millions) | Structured | Non- Structured |  | Total |  | Structured | Non- Structured |  | Total |  | Structured | Non- Structured |  | Total
Balance, beginning of year | $ | 13 |  | $ | 21 |  | $ | 34 |  |  | $ | 20 |  | $ | 17 |  | $ | 37 |  |  | $ | 2 |  | $ | 19 |  | $ | 21 |
Additions: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities for which allowance for credit losses was not previously recorded |  | 5 |  |  | 10 |  |  | 15 |  |  |  | 6 |  |  | 46 |  |  | 52 |  |  |  | 32 |  |  | 99 |  |  | 131 |
Reductions: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities sold during the period |  | (4) |  |  | (2) |  |  | (6) |  |  |  | (3) |  |  | (9) |  |  | (12) |  |  |  | — |  |  | (45) |  |  | (45) |
Addition to (release of) the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intent to sell before recovery of amortized cost basis |  | (3) |  |  | 13 |  |  | 10 |  |  |  | (1) |  |  | (7) |  |  | (8) |  |  |  | (13) |  |  | (46) |  |  | (59) |
Write-offs charged against the allowance |  | — |  |  | (24) |  |  | (24) |  |  |  | (11) |  |  | (26) |  |  | (37) |  |  |  | — |  |  | (6) |  |  | (6) |
Other |  | (1) |  |  | 10 |  |  | 9 |  |  |  | 2 |  |  | — |  |  | 2 |  |  |  | (1) |  |  | (4) |  |  | (5) |
Balance, end of year | $ | 10 |  | $ | 28 |  | $ | 38 |  |  | $ | 13 |  | $ | 21 |  | $ | 34 |  |  | $ | 20 |  | $ | 17 |  | $ | 37 |
Purchased Credit Deteriorated Securities We purchase certain RMBS securities that have experienced more-than-insignificant deterioration in credit quality since origination. These are referred to as PCD assets. At the time of purchase an allowance is recognized for these PCD assets by adding it to the purchase price to arrive at the initial amortized cost. There is no credit loss expense recognized upon acquisition of a PCD asset. When determining the initial allowance for credit losses, management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs: •Current delinquency rates; •Expected default rates and the timing of such defaults; •Loss severity and the timing of any recovery; and •Expected prepayment speeds. Subsequent to the acquisition date, the PCD assets follow the same accounting as other structured securities that are not high credit quality. We did not purchase securities with more than insignificant credit deterioration since their origination during the years ended December 31, 2024, 2023 and 2022. Other Invested Assets Our equity method investments in private equity funds, hedge funds and other entities are evaluated for impairment each reporting period. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investments and specific inherent risks. Such risks may evolve based on the nature of the underlying investments. Our investments in real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compare expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings. PLEDGED INVESTMENTS Secured Financing and Similar Arrangements We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. Our secured financing transactions also include those that involve the transfer of securities to financial institutions in exchange for cash (securities lending agreements). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts plus accrued interest, other than those that are accounted for at fair value. Pledged collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the amounts borrowed during the life of the transactions. In the event of a decline in the fair value of the pledged collateral under these secured financing transactions, we may be required to transfer cash or additional securities as pledged collateral under these agreements. At the termination of the transactions, we and our counterparties are obligated to return the amounts borrowed and the securities transferred, respectively. The following table presents the fair value of securities pledged to counterparties under secured financing transactions, including repurchase and securities lending agreements:
(in millions) |  | December 31, 2024 |  | December 31, 2023
Fixed maturity securities available for sale | $ | — | $ | 106
At December 31, 2024 and 2023, amounts borrowed under repurchase and securities lending agreements totaled $0 million and $107 million, respectively. The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity:
|  | Remaining Contractual Maturity of the Agreements
(in millions) |  | Overnight and Continuous |  | up to 30 days |  | 31 - 90 days |  | 91 - 364 days |  | 365 days or greater |  | Total
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Bonds available for sale: |  |  |  |  |  |  |  |  |  |  |  |
Non-U.S. governments |  | $ | — |  |  | $ | 106 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 106 |
Corporate debt |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | — |  |  | $ | 106 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 106 |
We also enter into agreements in which securities are purchased by us under reverse repurchase agreements, which are accounted for as secured financing transactions and reported as short-term investments or other assets, depending on their terms. These agreements are recorded at their contracted resale amounts plus accrued interest, other than those that are accounted for at fair value. In all reverse repurchase transactions, we take possession of or obtain a security interest in the related securities, and we have the right to sell or repledge this collateral received. The following table presents information on the fair value of securities pledged to us under reverse repurchase agreements:
(in millions) |  | December 31, 2024 |  | December 31, 2023
Securities collateral pledged to us | $ | 2,853 |  | $ | 1,200 |
At December 31, 2024 and 2023, the carrying value of reverse repurchase agreements totaled $2.8 billion and $1.1 billion, respectively. All secured financing transactions are collateralized and margined on a daily basis consistent with market standards and subject to enforceable master netting arrangements with rights of set off. We do not currently offset any such transactions. Insurance – Statutory and Other Deposits The total carrying value of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements and certain reinsurance contracts, was $7.8 billion and $8.4 billion at December 31, 2024 and 2023, respectively. Other Pledges and Restrictions Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs. We owned an aggregate of $13 million and $15 million of stock in FHLBs at December 31, 2024 and 2023, respectively. In addition, our subsidiaries have pledged securities available for sale with a fair value of $1.6 billion at December 31, 2024 and $1.7 billion at December 31, 2023. Investments held in escrow accounts or otherwise subject to restriction as to their use were $73 million and $164 million, comprised of bonds available for sale and short-term investments at December 31, 2024 and 2023, respectively. Reinsurance transactions between AIG and Fortitude Re were structured as modified coinsurance (modco) and loss portfolio transfer arrangements with funds withheld.

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