AIG Reports Second-Quarter Loss Due to Corebridge Separation (1)

American International Group Inc. booked a loss in the second quarter due to accounting charges tied to the formal separation of life and retirement business Corebridge Financial Inc.

AIG lost about $4 billion after earning $1.5 billion a year earlier, according to a statement Wednesday. The property and casualty insurer recognized an “accumulated other comprehensive loss” of $7.2 billion as it sold down its 48.4% stake in Corebridge, hitting an ownership threshold that required it to recognize unrealized losses on Corebridge’s corporate bond portfolio. That reflects how bonds written when interest rates were lower are worth less money today. ...