AIG · 10-Q · 2026Q2 · Full report
Reinsurance Recoverables Exposure
AMERICAN INTERNATIONAL GROUP, INC. · 2026-08-07 · Importance 49 · Surprise 32 · From source text
Total reinsurance recoverables increased to $41.6 billion at June 30, 2026 from $40.7 billion at December 31, 2025, an increase of approximately $0.9 billion. AIG evaluates recoverables using Obligor Risk Ratings and separately tracks investment-grade, non-investment-grade and unrated counterparties, although the filing excerpt does not provide the percentages. Non-investment-grade exposure is partly supported by collateral such as letters of credit, funds withheld or trust agreements, and past-due undisputed claims were not material.
Key facts
- We paid total consideration, including interest, of $10.2 billion for the adverse development reinsurance agreement with National Indemnity Company (NICO). source
- Under NICO agreement AIG ceded to NICO 80 percent of the losses on subject business paid on or after January 1, 2016 in excess of $25 billion of net paid losses, up to an aggregate limit of $25 billion. source
- Consideration paid including interest under NICO agreement: $(10,188) million (both dates shown as (10,188)). source
- Reinsurance transactions between AIG and Fortitude Re were structured as modified coinsurance (modco) and loss portfolio transfer arrangements with funds withheld. source
- Total reinsurance recoverables as of June 30, 2026: $41.6 billion and as of December 31, 2025: $40.7 billion. source
- Reinsurance assets - other: $35,755 million as of June 30, 2026 and $34,829 million as of December 31, 2025. source
- Covered losses above attachment point: $16,370 million at June 30, 2026 and $16,495 million at December 31, 2025. source
- Covered losses above attachment ceded to NICO (80%): $13,096 million at June 30, 2026 and $13,196 million at December 31, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -6.2% | Consideration paid including interest under NICO agreement: $(10,188) million (both dates shown as (10,188)). |
| assets | positive | realized | +0.6% | Reinsurance assets - other: $35,755 million as of June 30, 2026 and $34,829 million as of December 31, 2025. |
| assets | positive | realized | +0.2% | Reinsurance recoverable at beginning of period: ($28,198) (three months ended June 30, 2026), ($27,799) (three months ended June 30,… |
| assets | negative | realized | -0.1% | Covered losses above attachment point: $16,370 million at June 30, 2026 and $16,495 million at December 31, 2025. |
| assets | negative | realized | -0.1% | Covered losses above attachment ceded to NICO (80%): $13,096 million at June 30, 2026 and $13,196 million at December 31, 2025. |
| liability | positive | realized | +0.1% | Pre-tax deferred gain before discount and amortization from NICO: $2,908 million at June 30, 2026 and $3,008 million at December 31, 2025. |
| assets | positive | realized | +0.0% | Discount on ceded losses related to NICO: $(819) million at June 30, 2026 and $(891) million at December 31, 2025. |
| liability | positive | committed | — | Under NICO agreement AIG ceded to NICO 80 percent of the losses on subject business paid on or after January 1, 2016 in excess of $25… |
| liability | positive | realized | — | NICO adverse development reinsurance agreement cession: transferred to NICO 80 percent of the reserve risk on substantially all U.S.… |