FOR IMMEDIATE RELEASE

Press Release
AIG
175 Water Street
New York, NY 10038
www.aig.com

本稿は2018年5月2日、AIG米国本社が発表した英文プレスリリース（原文）の参考訳です。
本稿と原文との間で解釈に相違が生じた際には、原文が優先します。
原文の発信日付で、AIGジャパンのホームページに掲載しています。

AIG、2018年第1四半期の決算を公表
2018年5⽉2⽇（ニューヨーク発）：アメリカン・インターナショナル・グル
ープ・インク（ニューヨーク証券取引所銘柄：AIG）は本⽇、2018年第1四半期の純利益が9億3,800万ドル、希薄化後普通株式1株当たりでは1.01ドルになったことを公表しました。これに対して、前年同期は純利益が12億ドル、希薄化後普通株式1株当たりでは1.18ドルでした。2018年第1四半期の調整後税引
後利益は9億6,300万ドル、希薄化後普通株式1株当たりでは1.04ドルでした。
これに対して、前年同期は調整後税引後利益が14億ドル、希薄化後普通株式1株当たりでは1.36ドルでした。
AIG社⻑兼CEOのブライアン・デュパロウは以下のように述べました。「2018年第1四半期に、当社は準備⾦の正味戻⼊れ、損害保険事業の安定的な事故発
⽣年度ベースの損害率、⽣命保険および退職給付事業の堅調な業績など⼀貫した業績の実現に向けて前進しました。基本的な保険引受業務、当社事業全体を通じた説明責任の強化および規律ある意思決定を重視する当社の姿勢は定着しつつあります。また、⻑期にわたる利益性の⾼い成⻑に向けてAIGを位置付けるため、当社は第1四半期に損害保険事業部⾨を中⼼に組織全体を通じて世界に通⽤する⼈材の補強を⾏うこととしました。」
2018年第1四半期の業績概要
損害保険事業部⾨の業績 – 2018年第1四半期の調整後税引前利益5億1,000万
ドルは、主としてカリフォルニア州の⼟砂崩れ、⽶国内の⼤雪およびパプアニューギニア地震に関連する異常災害損失3億7,600万ドルならびに⼤規模災害損
失1億3,500万ドルを反映しています。2018年第1四半期の業績には北⽶コマーシャル・ラインを主因とする正味前年以前事故年度の当年度発⽣戻⼊⾦1億800万ドル（1.6ポイント）が含まれています。前年同期は正味前年以前事故年度の当年度発⽣保険⾦2,400万ドル（0.6ポイント）でした。2018年第1四半期の損害率は67.2ポイントでした。事故発⽣年度ベースの調整後損害率は63.1
ポイントとなり、2017年通期から基本的に変わりませんでした。
⽣命保険および退職給付事業部⾨の業績 – 2018年第1四半期の調整後税引前利
益は8億9,200万ドルでした。⽣命保険および退職給付事業部⾨は堅調な業績を実現しました。
⼒強い株式市場のパフォーマンスを背景に、個⼈向け退職給付、団体向け退職給付および機関投資家市場の運⽤資産は歴史的な⾼⽔準に達しました。個⼈向け退職給付および団体向け退職給付の基礎的正味投資スプレッドは、より⾼い
利回りの資産の流出と再投資利回りの低下を受けて、予想通り徐々に低下しました。調整後税引前利益は仕組み証券への臨時⽀払い5,400万ドルの恩恵を受けました。
レガシー – 2018年第1四半期の調整後税引前利益は、公正価値オプション資産からの利益低下および2017年の⽣命保険セトルメント売却を反映して、1億4,500万ドルとなりました。前年同期の調整後税引前利益は3億4,200万ドルでした。
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FOR IMMEDIATE RELEASE
正味投資利益 – 2018年第1四半期のレガシー保険ポートフォリオを含むAIGの保険会社からの正味投資利益は前年同期から9%減少して33億ドルとなりました。この減少は、オルタナティブ投資資産の⽔準低下、公正価値オプション証
券の利益低下および⾦利上昇と2017年第1四半期におけるナショナル・インデ
ムニティー・カンパニーのアドバース・デベロップメント再保険補償のファン
ディングを反映した⽣命保険および退職給付のコールとテンダーの利益低下が主因でした。
資本および流動性 – 2018年第1四半期にAIGは普通株式540万株を2億9,800
万ドルおよびワラントを200万ドルで買い戻しました。2018年5⽉2⽇現在、残存する⾃社株買い承認額は約20億ドルです。
2018年3⽉31⽇時点の親会社流動資産は約85億ドルでした。2018年第1四半期に親会社AIGは現⾦および満期固定証券の形で保険⼦会社から租税分与⽀払いを含む約11億ドルの配当を受け取りました。
普通株式１株当たりブック・バリュー – 2018年3⽉31⽇現在、普通株式１株当たりブック・バリューは69.95ドルでした。 2017年12⽉31⽇時点では72.49ドルでした。その他の包括利益累計額および繰り延べ税⾦資産を除く普通株式1株当たり（調整後普通株式１株当たりブック・バリュー）は2017年末に⽐べ2.5%増加して56.10ドルとなり、会計原則変更の影響を除くと1.3%増加しました。
ヴァリダス・ホールディングス・リミテッド – 本買収は関連する規制上の承認
およびその他の通常の実⾏条件の充⾜を条件に、2018年半ばに実⾏される予定です。
2018年第1四半期の業績概要*
3⽉31⽇までの3ヶ⽉間（単位：百万⽶ドル、1株当たりの額を除く）

2017

2018

純利益

$

938

$

1,185

希薄化後1株当たり純利益

$

1.01

$

1.18

調整後税引後利益

$

963

$

1,367

調整後希薄化後1株当たり利益

$

1.04

$

1.36

株主資本利益率

5.9 %

6.3 %

調整後株主資本利益率

7.7 %

9.6 %

調整後帰属株主資本利益率 – コア

8.6 %10.2 %

普通株式1株当たりブック・バリュー
その他の包括利益累計額を除く普通株式1株当たり
ブック・バリュー
調整後普通株式１株当たりブック・バリュー

$

69.95

$

78.59

$

67.48

$

74.58

56.10

59.10

*⾮GAAP財務指標ならびに⾮GAAP財務指標のGAAP指標への調整についてはレギュレーションGに関する注釈およびそれに続く表をご参照ください。

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損害保険事業部⾨
3⽉31⽇までの3ヶ⽉間
2018（単位：百万⽶ドル）

2017

増減

損害保険事業部⾨合計
正味収⼊保険料

$

6,171

$

6,297

(2)

保険引受利益（損失）

$

(251)

$

12

NM

調整後税引前利益

$

510

$

1,061

(52)

67.2

65.3

1.9

(5.7)

(3.5)

(2.2)

前年以前事故発⽣年度の当年度発⽣保険⾦

1.6

(0.6)

2.2

保険事故年度の調整済み損害率

63.1

61.2

1.9

事業費率

36.6

34.5

2.1

コンバインド・レシオ

103.8

99.8

4.0

保険事故年度の調整済みコンバインド・レシオ

99.7

95.7

4.0

%

引受に関する⽐率:
損害率

pts

損害率に対する影響：
異常災害損失および復活保険料

損害保険事業部⾨ – 北⽶
3⽉31⽇までの3ヶ⽉間
2018（単位：百万⽶ドル）

2017

増減

北⽶
正味収⼊保険料$

コマーシャル・ライン
個⼈向け損害保険
保険引受利益（損失）

$

2,039

2,323

(12)

1,314

1,611

(18)

725

712

2

(63)

(421)

(328)

$

$

コマーシャル・ライン

(89)

(100)

11

個⼈向け損害保険

(239)

37

NM

828

(61)

80.0

73.3

6.7

(11.1)

(5.4)

(5.7)

2.8

2.1

0.7

調整後税引前利益

$

320

$

%

引受に関する⽐率：
北⽶
損害率
損害率に対する影響：
異常災害損失および復活保険料
前年以前事故発⽣年度の当年度発⽣保険⾦

3

pts

FOR IMMEDIATE RELEASE
保険事故年度の調整済み損害率

71.7

70.0

1.7

事業費率

32.2

28.7

3.5

コンバインド・レシオ

112.2

102.0

10.2

保険事故年度の調整済みコンバインド・レシオ

103.9

98.7

5.2

75.9

78.1

(2.2)

(4.5)

(6.4)

1.9

前年以前事故発⽣年度の当年度発⽣保険⾦

6.9

2.9

4.0

保険事故年度の調整済み損害率

78.3

74.6

3.7

事業費率

28.8

26.4

2.4

コンバインド・レシオ

104.7

104.5

0.2

保険事故年度の調整済みコンバインド・レシオ

107.1

101.0

6.1

90.1

60.0

30.1

異常災害損失および復活保険料(27.4)(2.9)(24.5)

前年以前事故発⽣年度の当年度発⽣保険⾦

(7.5)

(0.3)

(7.2)

保険事故年度の調整済み損害率

55.2

56.8

(1.6)

事業費率

40.9

35.3

5.6

コンバインド・レシオ

131.0

95.3

35.7

保険事故年度の調整済みコンバインド・レシオ

96.1

92.1

4.0

北⽶コマーシャル・ライン
損害率

pts

損害率に対する影響：
異常災害損失および復活保険料

北⽶個⼈向け損害保険
損害率

pts

損害率に対する影響：

別段の記載がない限り、⽐較はすべて、2017年第1四半期に対するものです。詳細については、
AIG ウェブサイトの投資家向けセクションに掲載されている2018年第1四半期追加財務情報をご参照ください。



正味収⼊保険料は12%減少しました。再保険プログラムおよび⽶国の賠償責任保険および財物保険における戦略的ポートフォリオ対策の正味の影響が主因でした。



北⽶損害率の上昇は異常災害損失の増加と⼩中規模な損害⾦の増加が主因です。保険事故年度の調整済み損害率の1.7ポイントの上昇は再保険プログ
ラムの変更に関連する再保険料上昇の影響を反映していますが、これはポートフォリオ構成の望ましい変化により部分的相殺されました。また、2017年第1四半期には2017年下半期からの損失⾒積もりの増加を含んでいません。損失⾒積もりの増加を含めれば、保険事故年度の調整済み損害率
は前年同期から横ばいでした。



事業費率の上昇は再保険プログラムの変更およびポートフォリオ構成の変化を主因とする獲得費⽤率の上昇を反映しています。



調整後税引前利益3億2,000万ドルには異常災害損失2億9,900万ドルを含んでいます。異常災害損失は主として個⼈向け損害保険に⼤きな影響を及
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ぼしたカリフォルニア州の⼟砂崩れおよび⽶国内の⼤雪に関連するものでした。正味前年以前事故年度の当年度発⽣戻⼊⾦7,800万ドルはアドバース・デベロップメント再保険補償の繰延利益の償却が主因です。正味投資
利益はオルタナティブ投資の減少を反映して2億4,300万ドル減少しました。
損害保険事業部⾨ – 北⽶外
3⽉31⽇までの3ヶ⽉間
2018（単位：百万⽶ドル）

2017

増減

北⽶外
正味収⼊保険料

$

4,132

$

3,974

4

%

コマーシャル・ライン

1,955

2,018

(3)

個⼈向け損害保険

2,177

1,956

11

75

3

(14)

18

NM

91

57

60

233

(18)

58.5

58.6

(0.1) pts

(1.9)

(1.9)

-

0.7

(2.9)

3.6

事故発⽣年度の調整済み損害率

57.3

53.8

3.5

事業費率

39.5

39.3

0.2

コンバインド・レシオ

98.0

97.9

0.1

保険事故年度の調整済みコンバインド・レシオ

96.8

93.1

3.7

64.5

63.7

0.8 pts

(4.5)

(3.8)

(0.7)

-

(6.5)

6.5

事故発⽣年度の調整済み損害率

60.0

53.4

6.6

事業費率

36.4

35.2

1.2

コンバインド・レシオ

100.9

98.9

2.0

保険事故年度の調整済みコンバインド・レシオ

96.4

88.6

7.8

保険引受利益（損失）$コマーシャル・ライン
個⼈向け損害保険
調整後税引前利益

$

77

190

$

$

引受に関する⽐率：
北⽶外
損害率
損害率に対する影響：
異常災害損失および復活保険料
前年以前事故発⽣年度の当年度発⽣保険⾦

北⽶外・コマーシャル・ライン
損害率
損害率に対する影響：
異常災害損失および復活保険料
前年以前事故発⽣年度の当年度発⽣保険⾦

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3⽉31⽇までの3ヶ⽉間
2018（単位：百万⽶ドル）

2017

増減

北⽶外個⼈向け損害保険
損害率

54.0

54.4

(0.4)

-

(0.3)

0.3

1.3

0.1

1.2

事故発⽣年度の調整済み損害率

55.3

54.2

1.1

事業費率

42.0

42.6

(0.6)

コンバインド・レシオ

96.0

97.0

(1.0)

保険事故年度の調整済みコンバインド・レシオ

97.3

96.8

0.5

pts

損害率に対する影響：
異常災害損失および復活保険料
前年以前事故発⽣年度の当年度発⽣保険⾦

別段の記載がない限り、⽐較はすべて、2017年第1四半期に対するものです。詳細については、
AIG ウェブサイトの投資家向けセクションに掲載されている2018年第1四半期追加財務情報をご参照ください。



正味収⼊保険料は報告ベースで4%増加しました。⽇本におけるAIUと富⼠
⽕災海上保険（以下、富⼠）の合併の結果、富⼠の会計年度をAIUの会計年度に⼀致させました（富⼠合併の影響）。これに伴い2018年第1四半期には追加的な2ヶ⽉分の正味収⼊保険料約3億ドルが含まれています。富⼠
合併の影響を除く実質ベースでは、正味収⼊保険料は10%減少しました。
正味収⼊保険料の減少は、欧州でのリスク選別戦略、再保険プログラムの変更に関連する出再保険料上昇および⽇本における業績の鈍化が主因です。



2018年第1四半期の損害率は⼩幅低下して58.5ポイントでした。正味前年
以前事故年度の当年度発⽣戻⼊⾦を反映したものです。前年同期はオグデン割引率の引き下げを主因に正味前年以前事故年度の当年度発⽣繰越⾦を計上しました。保険事故年度の調整済み損害率は、⼤規模災害損失の増加
および再保険プログラムの変更に関連する出再保険料上昇を主因に、3.5ポ
イント上昇して57.3ポイントとなりました。



事業費率の上昇は再保険プログラムの変更による経過保険料の減少を主因とする取得費⽤の⼩幅上昇を反映しています。



調整後税引前利益1億9,000万ドルは、主としてパプアニューギニア地震に関連する異常災害損失の増加と⼤規模災害損害、再保険プログラムの変更に関連する再保険料上昇およびヘッジファンドのパフォーマンス悪化と前年同期は利益だった公正価値の変更が収益に認識される証券の損失による正味投資利益の減少を含んでいます。

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⽣命保険および退職給付事業部⾨
3⽉31⽇までの3ヶ⽉間
2018（単位：百万⽶ドル）

2017

増減

1,524

(23) %

⽣命保険および退職給付
収⼊保険料および⼿数料

$

1,180

$

正味投資利益

2,046

1,962

4

調整後収益

3,460

3,703

(7)

給付、損失および費⽤

2,568

2,805

(8)

892

898

(1)

調整後税引前利益
個⼈向け退職給付
収⼊保険料および⼿数料

$

216

$

1 %

213

正味投資利益

984

1,007

(2)

調整後収益

1,361

1,373

(1)

給付、損失および費⽤

862

834

3

調整後税引前利益

499

539

(7)

(820)

(295)

(178)

正味フロー
団体⼈向け退職給付
収⼊保険料および⼿数料

$

118

$

108

9 %

正味投資利益

582

555

5

調整後収益

761

718

6

給付、損失および費⽤

479

475

1

調整後税引前利益

282

243

16

(755)

(382)

(98)

正味フロー

3⽉31⽇までの3ヶ⽉間
2018（単位：百万⽶ドル）

2017

増減

⽣命保険
収⼊保険料および⼿数料

$

756

$

744

2 %

正味投資利益

293

260

13

調整後収益

1,061

1,013

5

給付、損失および費⽤

1,009

959

5

52

54

(4)

459

(80) %

調整後税引前利益
機関投資家市場
収⼊保険料および⼿数料

$

90

7

$

FOR IMMEDIATE RELEASE
正味投資利益

187

140

34

調整後収益

277

599

(54)

給付、損失および費⽤

218

537

(59)

調整後税引前利益

59

62

(5)

別段の

記載がない限り、⽐較はすべて、2017年第1四半期に対するものです。詳細については、AIG ウェブサイトの投資家向けセクションに掲載されている2018年第1四半期追加財務情報をご参照ください。

個⼈向け退職給付では、保険契約⼿数料が運⽤資産の増加を主因に増加しました。予想通り、スプレッドは再投資利回りの低下により引き続き縮⼩しました。基礎的正味投資スプレッドは運⽤資産および利益増加の減少により主として低額年⾦保険で低下しましたが、これはインデックス型年⾦保険の運⽤資産の伸びにより部分的に相殺されました。規制⾯の不透明感と業界内の混乱を反映して、正味フロー全体は引き続きマイナスでしたが、
インデックス型年⾦保険への資⾦流⼊により部分的に相殺されました。



団体向け退職給付では、保険契約⼿数料は資産の伸びを主因に増加しました。基礎的正味投資スプレッドは再投資利回りの低下を主因に低下しまし
たが、利益増加の伸びおよび効果的なクレジット・レート管理により部分的に相殺されました。団体向け退職給付の正味フローは団体契約からの預かり資産減少および団体契約の解約を含む解約増加により減少しました。



⽣命保険では、保険契約者層の⾼齢化による保険契約者給付の増加は運⽤資産の伸びおよびオルタナティブ投資の利益増加により部分的に相殺されました。



機関投資家市場では、年⾦リスク移転取引の増加の恩恵を受けた前年同期に⽐べ保険料および⼿数料の収⼊が減少しましたが、これは運⽤資産増加による正味投資利益の増加により部分的に相殺されました。

AIG グループは、世界の保険業界のリーダーであり、80 以上の国や地域でお客さまにサービスを提供しています。1919年に創業し、現在では、損害保険、⽣命保険、退職給付およびその他の⾦融サービスを幅広く提供しています。AIGグループの商品・サービスを通じた多岐にわたるサポートは、法⼈および個⼈のお客さまの資産を守り、リスクマネジメントおよび確かなリタイヤメント・セキュリティをお届けします。
持株会社 AIG, Inc.はニューヨークおよび東京の証券取引所に上場しています。
AIGの追加情報についてはwww.aig.com |You Tube : www.youtube.com/aig | Twitter :@AIGinsurance www.twitter.com/AIGinsurance |LinkedIn : http://www.linkedin.com/company/aig
を参照ください。AIGに関する追加情報を記載しているこれら参照先は便宜上提供されており、かかるウェブサイトに記載されている情報は、参照することにより本プレスリリースに組み込まれていません。
AIGとは、AIG, Inc.傘下の全世界の損害保険、⽣命保険、リタイヤメント・サービス事業ならびに⼀般的な保険事業のマーケティング名です。より詳細な情報については当社のホームページ（ www.aig.com ）を参照ください。全ての商品およびサービスはAIG, Inc.傘下の⼦会社または関連会社により引き受けまたは提供
されています。これらの商品およびサービスは⼀部の国では利⽤できない可能性があり、実際の契約に準拠します。保険以外の商品・サービスは、独⽴した第三者によって提供されることがあります。⼀部の損害保険の補償については、サープラス・ラインの保険会社によって提供される可能性があります。サープラス・
ラインの保険会社は、⼀般的に⽶国州政府保証基⾦に加⼊しないため、当該基⾦による保証は⾏われません。

8

FOR IMMEDIATE RELEASE

Press Release

Contacts:
Liz Werner (Investors): 212-770-7074; elizabeth.werner@aig.com
Fernando Melon (Investors): 212-770-4630; fernando.melon@aig.com
Daniel O’Donnell (Media): 212-770-3141; daniel.odonnell@aig.com
Claire Talcott (Media): 212-458-6343; claire.talcott@aig.com

AIG
175 Water Street
New York, NY 10038
www.aig.com

AIG REPORTS FIRST QUARTER 2018 RESULTSNEW YORK, May 2, 2018 - American International Group, Inc. (NYSE: AIG) today reported
net income of $938 million, or $1.01 per diluted share, for the first quarter of 2018, comparedto net income of $1.2 billion, or $1.18 per diluted share, in the prior-year quarter. Adjusted
after-tax income was $963 million, or $1.04 per diluted share, for the first quarter of 2018,
compared to adjusted after-tax income of $1.4 billion, or $1.36 per diluted share, in the prioryear quarter.
“In the first quarter we made progress towards delivering consistent results with net favorable
reserve development, a stable General Insurance accident year loss ratio, and solid Life andRetirement results. Our emphasis on fundamental underwriting practices, increasing
accountability across our businesses, and disciplined decision making is taking hold. In thequarter, we added world class talent across the organization, particularly in General Insurance
to position AIG for long-term profitable growth,” said Brian Duperreault, President and Chief
Executive Officer.
FIRST QUARTER 2018 HIGHLIGHTS
General Insurance Results – First quarter adjusted pre-tax income of $510 million reflected$376 million of catastrophe losses primarily related to the California mudslides, U.S. winterstorms and the Papua New Guinea earthquake, as well as $135 million of severe losses. The
first quarter results included net favorable prior year loss reserve development of $108 million(1.6 points), driven by North America Commercial Lines compared to $24 million ((0.6)
points) of net unfavorable prior year loss reserve development in the prior-year quarter. The
first quarter of 2018 loss ratio was 67.2. The accident year loss ratio, as adjusted, was 63.1,
essentially unchanged from full year 2017.
Life and Retirement Results – First quarter adjusted pre-tax income was $892 million. Life andRetirement produced solid results with assets under administration or management at
historically high levels in Individual Retirement, Group Retirement and Institutional Markets,
due to strong equity market performance. Base net investment spreads declined incrementally,
as expected, for Individual Retirement and Group Retirement due to the run-off of higher
yielding assets and lower reinvestment yields. Adjusted pre-tax income benefited from $54
million of non-recurring payments on structured securities.

1

FOR IMMEDIATE RELEASE

Legacy – First quarter adjusted pre-tax income of $145 million, compared to $342 million in
the prior-year quarter, reflected lower income from fair value option assets, as well as the saleof the Life Settlements portfolio in 2017.
Net Investment Income – First quarter net investment income from our insurance companies
including the Legacy insurance portfolios, decreased 9% from the prior-year quarter to $3.3
billion. The decline was primarily due to a lower level of alternative investment assets, lower
income from fair value option securities, lower call and tender income in Life and Retirement
reflecting higher interest rates and funding of the adverse development reinsurance coveragewith National Indemnity Company late in the first quarter 2017.
Capital and Liquidity – In the first quarter, AIG repurchased 5.4 million common shares for$298 million and warrants for $2 million. As of May 2, 2018, approximately $2.0 billion
remained under the share repurchase authorization.
As of March 31, 2018, AIG Parent liquidity stood at approximately $8.5 billion. In the firstquarter, AIG Parent received approximately $1.1 billion of distributions from insurance
subsidiaries in the form of cash and fixed maturity securities, including tax sharing payments.
Book Value per Common Share – As of March 31, 2018, book value per common share was$69.95 compared to $72.49 at December 31, 2017. Book value per common share excluding
accumulated other comprehensive income and deferred tax assets (Adjusted book value percommon share) increased 2.5% to $56.10 compared to year end 2017, or 1.3% excluding theimpact of changes in accounting principles.
Validus Holdings, Ltd. – The transaction is expected to close in mid-2018, subject to obtaining
the relevant regulatory approvals and other customary closing conditions.

FIRST QUARTER FINANCIAL SUMMARY*
Three Months Ended
March 31,($ in millions, except per share amounts)
Net income
Net income per diluted share
Adjusted after-tax income
Adjusted after-tax income per diluted share

$
$
$
$

Return on equity
Adjusted return on equity
Adjusted return on attributed equity - CoreBook value per common share
Book value per common share, excluding accumulated other comprehensive income
Adjusted book value per common share

2018
938
1.01
963
1.04

$
$
$
$

2017
1,185
1.18
1,367
1.36

5.9 %
7.7 %
8.6 %
$

69.95
67.48
56.10

6.3 %
9.6 %
10.2 %$*Refer to the Comments on Regulation G and the tables that follow for a discussion of non-GAAP financial measures and thereconciliations of the non-GAAP financial measures to GAAP measures.

2

78.59
74.58
59.10

FOR IMMEDIATE RELEASE

GENERAL INSURANCE

Three Months Ended March 31,($ in millions)
Total General Insurance
Net premiums written
Underwriting income (loss)
Adjusted pre-tax income

2018
$
$
$

Underwriting ratios:
Loss ratio
Impact on loss ratio:
Catastrophe losses and reinstatement premiums
Prior year development
Accident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted

2017

Change6,171 $
(251) $
510 $

6,297
12
1,061

(2) %
NM
(52)

67.2

65.3

1.9 pts

(5.7)
1.6
63.1
36.6
103.8
99.7

(3.5)
(0.6)
61.2
34.5
99.8
95.7

(2.2)
2.2
1.9
2.1
4.0
4.0

General Insurance - North America

Three Months Ended March 31,($ in millions)North America
Net premiums written
Commercial Lines
Personal Insurance

2018

2017

Change

$

2,039
1,314
725

$

2,323
1,611
712

(12) %(18)
2

Underwriting income (loss)
Commercial Lines
Personal Insurance$(328) $
(89)
(239)

(63)
(100)
37

(421)
11
NM

Adjusted pre-tax income

$

320

828

(61)

80.0

73.3

6.7 pts(11.1)
2.8
71.7
32.2
112.2
103.9

(5.4)
2.1
70.0
28.7
102.0
98.7

(5.7)
0.7
1.7
3.5
10.2
5.2

Underwriting ratios:
North America
Loss ratio
Impact on loss ratio:
Catastrophe losses and reinstatement premiums
Prior year development
Accident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted

3$

FOR IMMEDIATE RELEASE

Three Months Ended March 31,($ in millions)North America Commercial Lines
Loss ratio
Impact on loss ratio:
Catastrophe losses and reinstatement premiums
Prior year development
Accident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted
North America Personal Insurance
Loss ratio
Impact on loss ratio:
Catastrophe losses and reinstatement premiums
Prior year development
Accident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted

2018

2017

Change75.9

78.1(2.2) pts

(4.5)
6.9
78.3
28.8
104.7
107.1

(6.4)
2.9
74.6
26.4
104.5
101.0

1.9
4.0
3.7
2.4
0.2
6.1

90.1

60.0

30.1 pts(27.4)
(7.5)
55.2
40.9
131.0
96.1

(2.9)
(0.3)
56.8
35.3
95.3
92.1

(24.5)
(7.2)
(1.6)
5.6
35.7
4.0

All comparisons are against the first quarter of 2017, unless otherwise indicated. Refer to the AIG First
Quarter 2018 Financial Supplement, which is posted on AIG's website in the Investors section, for further
information.

4

Net premiums written decreased by 12%, largely driven by the net impact of ourreinsurance program and the strategic portfolio actions in U.S. Casualty and Property.



The increase in the North America loss ratio was driven by higher catastrophe losses
and higher attritional losses. The accident year loss ratio, as adjusted, increased 1.7
points and reflects the impact of higher ceded premiums related to changes in ourreinsurance program, which was partially offset by a favorable change in the portfolio
mix. Also, the first quarter of 2017 did not include the increased loss estimates fromthe second half of 2017. The accident year loss ratio, as adjusted, would have been flatcompared to the prior-year quarter after including these increased loss estimates.



The increase in the expense ratio reflected a higher acquisition expense ratio driven bychanges in our reinsurance program and changes in the portfolio mix.



Adjusted pre-tax income of $320 million included $299 million of catastrophe-related
losses, which were primarily related to the California mudslides and largely impacted
Personal Insurance, as well as U.S. winter storms. Net favorable prior year loss reserve
development of $78 million was primarily due to amortization of the deferred gainfrom the adverse development reinsurance coverage. Net investment income decreased
by $243 million reflecting lower alternative investments.

FOR IMMEDIATE RELEASE

General Insurance - International
Three Months Ended March 31,($ in millions)International
Net premiums written
Commercial Lines
Personal Insurance

2018
$

2017

4,132
1,955
2,177

Change

$

3,974
2,018
1,956

4 %
(3)
11

Underwriting income (loss)
Commercial Lines
Personal Insurance

$

77 $
(14)
91

75
18
57

3
NM
60

Adjusted pre-tax income

$

190

233

(18)

58.5

58.6

(0.1) pts

(1.9)
0.7
57.3
39.5
98.0
96.8

(1.9)
(2.9)
53.8
39.3
97.9
93.1

3.6
3.5
0.2
0.1
3.7

64.5

63.7

0.8 pts

(4.5)
60.0
36.4
100.9
96.4

(3.8)
(6.5)
53.4
35.2
98.9
88.6

(0.7)
6.5
6.6
1.2
2.0
7.8

54.0

54.4

(0.4) pts

1.3
55.3
42.0
96.0
97.3

(0.3)
0.1
54.2
42.6
97.0
96.8

0.3
1.2
1.1
(0.6)
(1.0)
0.5

Underwriting ratios:
International
Loss ratio
Impact on loss ratio:
Catastrophe losses and reinstatement premiums
Prior year development
Accident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted
International Commercial Lines
Loss ratio
Impact on loss ratio:
Catastrophe losses and reinstatement premiums
Prior year development
Accident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted
International Personal Insurance
Loss ratio
Impact on loss ratio:
Catastrophe losses and reinstatement premiums
Prior year development
Accident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted$

All comparisons are against the first quarter of 2017, unless otherwise indicated. Refer to the AIG First
Quarter 2018 Financial Supplement, which is posted on AIG's website in the Investors section, for further
information.

5

Net premiums written increased 4% on a reported basis. As a result of the merger of AIU
Japan and Fuji Fire and Marine Insurance Company (Fuji), Fuji’s fiscal period wasFOR IMMEDIATE RELEASE

conformed to that of AIU Japan (Fuji merger impact). As a result, the first quarter included
approximately $300 million for two additional months of net premiums written. On a
constant dollar basis and excluding the Fuji merger impact, net premiums written declined
10%. The decrease in net premiums written was primarily driven by our risk selection
strategy in Europe and higher ceded premiums related to changes in our reinsurance
program and lower production in Japan.
The loss ratio was slightly lower at 58.5 in the first quarter of 2018 reflecting net favorable
prior year loss reserve development compared to net unfavorable prior year loss reserve
development in the prior-year quarter, primarily impacted by the reduction in the Ogden
discount rate. The accident year loss ratio, as adjusted, increased 3.5 points to 57.3 driven
by higher severe losses and higher ceded premiums related to changes in our reinsurance
program.



The increase in expense ratio reflected a slightly higher acquisition ratio mainly due to adecrease in earned premiums driven by the changes in our reinsurance program.



Adjusted pre-tax income of $190 million included higher catastrophe-related losses
primarily related to the Papua New Guinea earthquake and severe losses, higher cededpremiums related to changes in our reinsurance program and lower net investment income
due to weaker hedge fund performance and losses on securities for which changes in fairvalue are recognized in earnings compared to gains in the prior-year quarter.

LIFE AND RETIREMENT
Three Months Ended March 31,($ in millions)Life and Retirement
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income
Individual Retirement
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income
Net flows

6

2018

2017

Change

$

1,180
2,046
3,460
2,568
892

$

1,524
1,962
3,703
2,805
898

(23) %
4
(7)
(8)
(1)

$

216 $
984
1,361
862
499
(820)

213
1,007
1,373
834
539
(295)

1 %
(2)
(1)
3
(7)
(178)

FOR IMMEDIATE RELEASE

Three Months Ended March 31,($ in millions)Group Retirement
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income
Net flows
Life Insurance
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income
Institutional Markets
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income

2018

2017

Change

$

118 $
582
761
479
282
(755)

108
555
718
475
243
(382)

9 %
5
6
1
16
(98)

$

756 $
293
1,061
1,009
52

744
260
1,013
959
54

2 %
13
5
5
(4)

$

90 $
187
277
218
59

459
140
599
537
62

(80) %
34
(54)
(59)
(5)

All comparisons are against the first quarter of 2017, unless otherwise indicated. Refer to the AIG First
Quarter 2018 Financial Supplement, which is posted on AIG's website in the Investors section, for further
information.

7



In Individual Retirement, policy fees increased primarily from growth in assets undermanagement. As expected, spreads continued to see compression from lower reinvestment
yields. Base net investment spread income declined, primarily in Fixed Annuities driven by
decreases in invested assets and accretion income, partially offset by growth in Index
Annuities invested assets. Overall net flows continued to be negative reflecting theregulatory uncertainties and disruption in the industry, partially offset by inflows to Index
Annuities.



In Group Retirement, policy fees increased primarily due to growth in assets. Base net
investment spread declined primarily due to lower reinvestment yields, partially offset byhigher accretion income and effective crediting rate management. Group Retirement net
flows declined due to lower deposits from group plan acquisitions and higher surrenders,
including group plan surrenders.



In Life Insurance, higher policyholder benefits from aging of the policyholder
population base were partially offset by higher portfolio income driven by growth ininvested assets and higher returns on alternative investments.



In Institutional Markets, lower premiums and fee income compared to the prior-year
quarter, which benefited from higher pension risk transfer transactions, were partially
offset by higher net investment income due to higher assets under management.

FOR IMMEDIATE RELEASECONFERENCE CALL
AIG will host a conference call tomorrow, Thursday, May 3, 2018 at 8:00 a.m. ET to review theseresults. The call is open to the public and can be accessed via a live listen-only webcast in theInvestor Relations section of www.aig.com. A replay will be available after the call at the same
location.
###

Additional supplementary financial data is available in the Investor Relations section at
www.aig.com.
The conference call (including the conference call presentation material), the earnings release andthe financial supplement may include, and officers and representatives of AIG may from time totime make and discuss, projections, goals, assumptions and statements that may constitute“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act
of 1995. These projections, goals, assumptions and statements are not historical facts but instead
represent only a belief regarding future events, many of which, by their nature, are inherently
uncertain and outside AIG’s control. These projections, goals, assumptions and statements include
statements preceded by, followed by or including words such as “will,” “believe,” “anticipate,”“expect,” “intend,” “plan,” “focused on achieving,” “view,” “target,” “goal” or “estimate.” These
projections, goals, assumptions and statements may relate to future actions, prospective services or
products, future performance or results of current and anticipated services or products, sales efforts,
expenses, the outcome of contingencies such as legal proceedings, anticipated organizational,
business or regulatory changes, anticipated sales, monetization and/or acquisitions of businesses orassets, management succession and retention plans, exposure to risk, trends in operations andfinancial results.
It is possible that AIG’s actual results and financial condition will differ, possibly materially, fromthe results and financial condition indicated in these projections, goals, assumptions and statements.
Factors that could cause AIG’s actual results to differ, possibly materially, from those in thespecific projections, goals, assumptions and statements include:








8

changes in market and industry conditions;
negative impacts on customers, business partners and other stakeholders;the occurrence of catastrophic events, both natural and man-made;AIG’s ability to successfully reorganize its businesses, as well as improve profitability,
without negatively impacting client relationships or its competitive position;
AIG’s ability to successfully dispose of, monetize and/or acquire businesses or assets,
including AIG’s ability to successfully consummate the purchase of Validus Holdings,
Ltd.;changes in judgments concerning insurance underwriting and insurance liabilities;changes in judgments concerning potential cost saving opportunities;
the impact of potential information technology, cybersecurity or data security breaches,
including as a result of cyber-attacks or security vulnerabilities;

FOR IMMEDIATE RELEASE










disruptions in the availability of AIG’s electronic data systems or those of third parties;
AIG’s ability to successfully manage Legacy portfolios;
concentrations in AIG’s investment portfolios;
actions by credit rating agencies;
the requirements, which may change from time to time, of the global regulatory
framework to which AIG is subject, including as a global systemically important insurer;
significant legal, regulatory or governmental proceedings;
changes in judgments concerning the recognition of deferred tax assets; andsuch other factors discussed in Part I, Item 2. Management's Discussion and Analysis ofFinancial Condition and Results of Operations (MD&A) in AIG’s Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 2018 (which will be filed with theSEC) and Part II, Item 7. MD&A and Part I, Item 1A. Risk Factors in AIG’s Annual
Report on Form 10-K for the year ended December 31, 2017.

AIG is not under any obligation (and expressly disclaims any obligation) to update or alter any
projections, goals, assumptions or other statements, whether written or oral, that may be made fromtime to time, whether as a result of new information, future events or otherwise.
###

COMMENT ON REGULATION G
Throughout this press release, including the financial highlights, AIG presents its financial
condition and results of operations in the way it believes will be most meaningful andrepresentative of its business results. Some of the measurements AIG uses are “non-GAAP
financial measures” under Securities and Exchange Commission rules and regulations. GAAP is
the acronym for “generally accepted accounting principles” in the United States. The non-GAAP
financial measures AIG presents may not be comparable to similarly-named measures reported byother companies. The reconciliations of such measures to the most comparable GAAP measures inaccordance with Regulation G are included within the relevant tables or in the First Quarter 2018
Financial Supplement available in the Investor Information section of AIG’s website,www.aig.com.
Book Value per Common Share, Excluding Accumulated Other Comprehensive Income(AOCI) and Book Value per Common Share, Excluding AOCI and Deferred Tax Assets(DTA) (Adjusted Book Value per Common Share) are used to show the amount of AIG’s net
worth on a per-share basis. AIG believes these measures are useful to investors because theyeliminate items that can fluctuate significantly from period to period, including changes in fairvalue of AIG’s available for sale securities portfolio, foreign currency translation adjustments andU.S. tax attribute deferred tax assets. These measures also eliminate the asymmetrical impact
resulting from changes in fair value of AIG’s available for sale securities portfolio wherein there islargely no offsetting impact for certain related insurance liabilities. AIG excludes deferred tax
assets representing U.S. tax attributes related to net operating loss carryforwards and foreign tax
credits as they have not yet been utilized. Amounts for interim periods are estimates based on
projections of full-year attribute utilization. As net operating loss carryforwards and foreign tax
credits are utilized, the portion of the DTA utilized is included in these book value per common
9FOR IMMEDIATE RELEASE

share metrics. Book value per common share, excluding AOCI, is derived by dividing Total AIG
Shareholders’ equity, excluding AOCI, by total common shares outstanding. Adjusted Book Valueper Common Share is derived by dividing Total AIG shareholders’ equity, excluding AOCI andDTA (Adjusted Shareholders’ Equity), by total common shares outstanding.
AIG Return on Equity – Adjusted After-tax Income Excluding AOCI and DTA (Adjusted
Return on Equity) is used to show the rate of return on shareholders’ equity. AIG believes thismeasure is useful to investors because it eliminates items that can fluctuate significantly fromperiod to period, including changes in fair value of AIG’s available for sale securities portfolio,
foreign currency translation adjustments and U.S. tax attribute deferred tax assets. This measure
also eliminates the asymmetrical impact resulting from changes in fair value of AIG’s available forsale securities portfolio wherein there is largely no offsetting impact for certain related insurance
liabilities. AIG excludes deferred tax assets representing U.S. tax attributes related to net operating
loss carryforwards and foreign tax credits as they have not yet been utilized. Amounts for interim
periods are estimates based on projections of full-year attribute utilization. As net operating loss
carryforwards and foreign tax credits are utilized, the portion of the DTA utilized is included in
Adjusted Return on Equity. Adjusted Return on Equity is derived by dividing actual or annualized
adjusted after-tax income attributable to AIG by average Adjusted Shareholders’ Equity.
Core Adjusted Attributed Equity is an attribution of total AIG Adjusted Shareholders’ Equity tothese segments based on AIG’s internal capital model, which incorporates the segments’ respective
risk profiles. Adjusted attributed equity represents AIG’s best estimates based on current facts andcircumstances and will change over time.
Core Return on Equity – Adjusted After-tax Income (Adjusted Return on Attributed Equity)
is used to show the rate of return on Adjusted Attributed Equity. Adjusted Return on Attributed
Equity is derived by dividing actual or annualized Adjusted After-tax Income by Average Adjusted
Attributed Equity.
Adjusted After-tax Income Attributable to Core is derived by subtracting attributed interest
expense and income tax expense from adjusted pre-tax income. Attributed debt and the related
interest expense is calculated based on AIG’s internal capital model. Tax expense or benefit iscalculated based on an internal attribution methodology that considers among other things thetaxing jurisdiction in which the segments conduct business, as well as the deductibility of expenses
in those jurisdictions.
Adjusted Revenues exclude Net realized capital gains (losses), income from non-operating
litigation settlements (included in Other income for GAAP purposes) and changes in fair value of
securities used to hedge guaranteed living benefits (included in Net investment income for GAAP
purposes). Adjusted revenues is a GAAP measure for AIG’s operating segments.
AIG uses the following operating performance measures because AIG believes they enhance theunderstanding of the underlying profitability of continuing operations and trends of AIG’s businesssegments. AIG believes they also allow for more meaningful comparisons with AIG’s insurancecompetitors. When AIG uses these measures, reconciliations to the most comparable GAAP
measure are provided on a consolidated basis.
10FOR IMMEDIATE RELEASE

Adjusted Pre-tax Income (APTI) is derived by excluding the items set forth below from income
from continuing operations before income tax. This definition is consistent across AIG’s segments.
These items generally fall into one or more of the following broad categories: legacy matters
having no relevance to AIG’s current businesses or operating performance; adjustments to enhancetransparency to the underlying economics of transactions; and measures that AIG believes to becommon to the industry. APTI is a GAAP measure for AIG’s segments. Excluded items include
the following:• changes in fair value of securities used tohedge guaranteed living benefits;• income or loss from discontinued
operations;• changes in benefit reserves and deferred
policy acquisition costs (DAC), value ofbusiness acquired (VOBA), and sales
inducement assets (SIA) related to net
realized capital gains and losses;• pension expense related to a one-timelump sum payment to former employees;• loss (gain) on extinguishment of debt;• all net realized capital gains and losses
except earned income (periodic settlements
and changes in settlement accruals) on
derivative instruments used for nonqualifying (economic) hedging or for asset
replication. Earned income on sucheconomic hedges is reclassified from net
realized capital gains and losses to specific
APTI line items based on the economic risk
being hedged (e.g. net investment income
and interest credited to policyholder accountbalances);• income and loss from divested businesses;• non-operating litigation reserves andsettlements;• restructuring and other costs related toinitiatives designed to reduce operating
expenses, improve efficiency and simplify
AIG’s organization;• the portion of favorable or unfavorable
prior year reserve development for which
AIG has ceded the risk under retroactive
reinsurance agreements and relatedchanges in amortization of the deferred
gain; and• net loss reserve discount benefit (charge).

Adjusted After-tax Income attributable to AIG (AATI) is derived by excluding the tax effected
APTI adjustments described above and the following tax items from net income attributable to
AIG:
•
•
•

deferred income tax valuation allowance releases and charges;changes in uncertain tax positions and other tax items related to legacy matters having no
relevance to AIG’s current businesses or operating performance; andnet tax charge related to the enactment of the Tax Cuts and Jobs Act (Tax Act).

See page 14 for the reconciliation of Net income attributable to AIG to Adjusted After-tax Income
Attributable to AIG.
Ratios: AIG, along with most property and casualty insurance companies, uses the loss ratio, theexpense ratio and the combined ratio as measures of underwriting performance. These ratios are
relative measurements that describe, for every $100 of net premiums earned, the amount of losses
11FOR IMMEDIATE RELEASE

and loss adjustment expenses (which for General Insurance excludes net loss reserve discount), andthe amount of other underwriting expenses that would be incurred. A combined ratio of less than
100 indicates underwriting income and a combined ratio of over 100 indicates an underwriting loss.
AIG’s ratios are calculated using the relevant segment information calculated under GAAP, andthus may not be comparable to similar ratios calculated for regulatory reporting purposes. The
underwriting environment varies across countries and products, as does the degree of litigation
activity, all of which affect such ratios. In addition, investment returns, local taxes, cost of capital,
regulation, product type and competition can have an effect on pricing and consequently on
profitability as reflected in underwriting income and associated ratios.
Accident year loss and combined ratios, as adjusted: both the accident year loss andcombined ratios, as adjusted, exclude catastrophe losses and related reinstatement premiums,
prior year development, net of premium adjustments, and the impact of reserve discounting.
Natural and man-made catastrophe losses are generally weather or seismic events having a net
impact on AIG in excess of $10 million each and also include certain man-made events, suchas terrorism and civil disorders that meet the $10 million threshold. AIG believes the as
adjusted ratios are meaningful measures of AIG’s underwriting results on an ongoing basis as
they exclude catastrophes and the impact of reserve discounting which are outside ofmanagement’s control. AIG also excludes prior year development to provide transparency
related to current accident year results.
Underwriting ratios are computed as follows:a) Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned(NPE)b) Acquisition ratio = Total acquisition expenses ÷ NPEc) General operating expense ratio = General operating expenses ÷ NPEd) Expense ratio = Acquisition ratio + General operating expense ratioe) Combined ratio = Loss ratio + Expense ratiof) Accident year loss ratio, as adjusted (AYLR) = [Loss and loss adjustment expenses
incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement premiums (RIPs) related tocatastrophes +/(-) RIPs related to prior year catastrophes + (Additional) returned
premium related to PYD on loss sensitive business + Adjustment for ceded premiums
under reinsurance contracts related to prior accident years]g) Accident year combined ratio = AYLR + Expense ratioh) Catastrophe losses (CATs) and reinstatement premiums = [Loss and loss adjustment
expenses incurred – (CATs)] ÷ [NPE +/(-) RIPs related to catastrophes] – Loss ratioi) Prior year development net of (additional) return premium related to PYD on loss
sensitive business = [Loss and loss adjustment expenses incurred – Prior year loss
reserve development unfavorable (favorable) (PYD), net of reinsurance] ÷ [NPE +/(-)
RIPs related to prior year catastrophes + (Additional) returned premium related to
PYD on loss sensitive business] – Loss ratio
Results from discontinued operations are excluded from all of these measures.
#

12

#

#

FOR IMMEDIATE RELEASE

American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies
provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in morethan 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect
their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and theTokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance
www.twitter.com/AIGinsurance | LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG havebeen provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or
provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, andcoverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain
property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state
guaranty funds, and insureds are therefore not protected by such funds.

13

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation($ in millions, except per share data)

Reconciliations of Adjusted Pre-tax and After-tax Income (Loss)

Pre-tax income/net income, including noncontrolling interests
Noncontrolling interest
Pre-tax income/net income attributable to AIG
Adjustments:
Changes in uncertain tax positions and other tax adjustments
Deferred income tax valuation allowance (releases) charges
Changes in fair value of securities used to hedge
guaranteed living benefits
Changes in benefit reserves and DAC, VOBA andSIA related to net realized capital gains (losses)
Unfavorable (favorable) prior year development and related
amortization changes ceded under retroactive reinsurance agreements(Gain) loss on extinguishment of debt
Net realized capital losses*
Noncontrolling interest on net realized capital losses
Loss from discontinued operations(Income) loss from divested businesses
Non-operating litigation reserves and settlements
Net loss reserve discount (benefit) charge
Restructuring and other costs
Adjusted pre-tax income/Adjusted after-tax income$$

Pre-tax
1,227
1,227

Three Months Ended March 31,
2018
2017
Tax Effect After-tax
Pre-tax
Tax Effect$277 $948 $ 1,727 $
516
(10)
277
938
1,727
516

After-tax$ 1,206
(21)
1,185

-

4
(30)

(4)
30

-

50
13

(50)
(13)

77

16

61

(11)

(4)

(7)

31

6

25

(53)

(19)

(34)

34
4
19
(8)
13
(205)
24
1,216 $

7
1
(1)
(2)
3
(43)
5
243 $

27
3
20
1
1
(6)
10
(162)
19
963

14
(1)
115
100
(6)
(25)
181
2,041

4
47
(6)
(2)
(9)
63
653

10
(1)
68
5
106
(4)
(16)
118
1,367

$

$

$

* Includes all net realized capital gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for
non-qualifying (economic) hedging or for asset replication.

14

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per share data)

Summary of Key Financial Metrics
Three Months Ended March 31,
2018
Earnings per common share:
Basic
Income from continuing operations
Income from discontinued operations$

Net income attributable to AIG$

DilutedIncome from continuing operations
Income from discontinued operations$

Net income attributable to AIG
Adjusted after-tax income attributable to AIG per diluted share$$

Weighted average shares outstanding:
Basic
Diluted$March 31, 2018
62,792
2,220
60,572

Deferred tax assets (c)Total adjusted AIG shareholders' equity

1.01
1.01
1.04

$

$

$
$

Total adjusted AIG shareholders' equity, excluding cumulative
effect of change in accounting principle, net of tax$
March 31, 2018
69.95
67.48
56.10

$
$
$

$

55.47

$

(14.9) %NM(14.9)

1.18
1.18
1.36

(14.4)
NM(14.4)(23.5) %980.8
1,005.3
6.3 %
9.6 %

March 31, 2017
74,0693,781
70,288$December 31, 2017
65,171
5,465
59,706

14,58555,703

10,492
49,214

(8)
576

-

-

49,790

$
$
$

$

1.21
1.21

10,21450,358Less:
Cumulative effect of change in accounting principle, net of tax reported in:
Total AIG shareholders' equity
AOCI

Total common shares outstanding

$

5.9 %
7.7 %

As of period end:
Total AIG shareholders' equity
Accumulated other comprehensive income (AOCI)
Total AIG shareholders' equity, excluding AOCI

As of period end:
Book value per common share (d)Book value per common share, excluding AOCI (e)Adjusted book value per common share (f)Adjusted book value per common share, excluding the impact fromcumulative effect of change in accounting principle, net of tax

1.03
1.03

908.0
925.3

Return on equity (a)Adjusted return on equity (b)% Inc.
(Dec.)

2017$

55,703

March 31, 2017 % Inc. (Dec.)
78.59(11.0) %
74.58
(9.5)
59.10
(5.1)

897.7

59.10
942.5

(6.2)

$

December 31, 2017
$
72.49
$
66.41
$
54.74
$

54.74

49,214% Inc. (Dec.)(3.5) %
1.6
2.5
1.3

899.0

Financial highlights - notes(a) Computed as Annualized net income (loss) attributable to AIG divided by average AIG shareholders' equity. Equity includes AOCI and DTA.
(b) Computed as Annualized Adjusted after-tax income attributable to AIG divided by Adjusted Shareholders' Equity.
(c) Represents deferred tax assets only related to U.S. net operating loss and foreign tax credit carryforwards on a U.S. GAAP basis and excludes other balance sheet deferred tax
assets and liabilities.
(d) Represents total AIG shareholders' equity divided by Total common shares outstanding.
(e) Represents total AIG shareholders' equity, excluding AOCI, divided by Total common shares outstanding.
(f) Represents Adjusted Shareholders' Equity, divided by Total common shares outstanding.

15

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation($ in millions, except per share amounts)
Reconciliations of Core Adjusted Return on Equity
Three Months Ended
March 31,2018
2017
Adjusted pre-tax income
Interest expense (benefit) on attributed financial debt

$

1,071
(10)
1,081
214
867

$

1,699
(43)
1,742
556
1,186

$
$

41,112
40,522
8.6 %$$45,22646,43810.2 %

Adjusted pre-tax income including attributed interest expenses
Income tax expense
Adjusted after-tax income
Ending adjusted attributed equity
Average adjusted attributed equity
Adjusted return on attributed equity

Reconciliations of Accident Year Loss Ratio, as Adjusted
Twelve Months Ended
December 31, 2017
83.2
(16.1)
(4.0)
(0.1)
63.0

Total General Insurance
Loss ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustment for ceded premium under reinsurance contract
Accident year loss ratio, as adjusted

Net Premiums Written - Change in Constant Dollar, excluding Fuji Merger Impact

General Insurance - International
New Premiums Written
Less: Fuji merger impact
Net premiums written, excluding Fuji merger impact$$

Three Months Ended
March 31,
2018
2017
4,132
$
3,974
(300)
n/a

Percentage Change in
U.S. dollars
Original Currency
4 %
(3) %
n/a
(7)
(10) %

Reconciliation of Net Investment Income
Three Months Ended
March 31,2018
2017
Net Investment Income - Insurance companies:
General InsuranceLife and Retirement
Legacy Operations
Divested Insurance Operations (Reported in Other Operations)
Consolidations and eliminations
Total Insurance Company NII - Operating basis
Add:
Non-operating changes in FV of securities used to hedge guaranteed living benefits
Total Net Investment Income - per Consolidated Statement of Operations

16

$

$

761
2,046
565
(1)
(33)
3,338
(77)
3,261

$

$

1,049
1,962
730
22
(88)
3,675
11
3,686