FOR IMMEDIATE RELEASE

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

本稿は2018年2月8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、2017年第4四半期の決算を公表
2018年2月8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、2017年第4四半期の純損失が67億ドル、1株当たりでは7.33 ドルになったことを公表しました。
これに対して、前年同期は純損失が30億ドル、1株当たりでは2.96ドルでした。
2017年第4四半期の純損失には「減税及び雇用法」（税制改革法）成立に関連する費用67億ドルが含まれています。2017年第4四半期の調整後税引後利益は5億2,600万ドル、1株当たりでは0.57ドルでした。これに対して、前年同期は純損失が28億ドル、1株当たりでは2.72ドルでした。
AIG社長兼CEOのブライアン・デュパロウは以下のように述べました。「第4四半期はAIGを将来に向けて適切な場所に位置付ける上でさらに重要な一歩前進をしました。私が2017年5月に入社した以降、当社はタレント・ベースを増大させるとともに、保険引受活動（アンダーライティング）を評価、開始し、新たな事業構造を確立しました。2017年はこれからの当社を構築していく上での出発点であり、2018年はその遂行の年になります。事業を多角化し利益を生む
成長を追求する当社の行動は1月に発表されたヴァリダス社買収にさらに反映されています。」「当社の2017年第4四半期および2017年通期の業績は異常災害損失に大きく影響されました。通期の異常災害損失は過去最高の42億ドルとなりましたが、約15億ドルの税引前利益および 30億ドルを超える調整後税引前利益を実現しました。重要なことは、当社が2017年第4四半期に実施した準備金見直しにより小幅の正味アドバース・デベロップメントとなり、損害保険事業部門の北米
コマーシャル・ラインは顕著な改善と準備金の安定性を示したことです。個人向け損害保険、生命保険および退職給付事業は引き続き堅調なパフォーマンス
を実現し、多様な商品提供からの利益を享受しました。」
2017年第4四半期および2017年通期の業績概要
損害保険事業部門の業績 – 2017年第4四半期の調整後税引前利益1,300万ドルには異常災害損失7億6,200万ドルが含まれており、そのうち5億7,200万ドル
はカリフォルニア州における山火事に関連するものでした。北米地域の調整後税引前利益4億1,200万ドルは北米外の調整後税引前損失3億9,900万ドルにより相殺されました。2017年第4四半期の業績は、北米外・コマーシャル・ライ
ンを主因に、小幅の正味前年以前事故年度の当年度発生保険金1.4ポイントを反映しています。2017年第4四半期および2017年通期の損害率はそれぞれ
78.3ポイント、83.2ポイントでした。事故発生年度ベースの調整後損害率は65.2ポイントとなり、前年同期から2.3ポイント改善しました。2017年通期の事故発生年度ベースの調整後損害率63.0ポイントとなり、前年同期から1.1ポイント上昇しました。

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FOR IMMEDIATE RELEASE
生命保険および退職給付事業部門の業績 – 2017年第4四半期の調整後税引前利
益7億8,200万ドルには、進行中の保険数理システム近代化および関連する小幅な改善を理由に、主として個人向け退職給付および団体向け退職給付において
約9,000万ドルの調整費用が含まれています。2017年第4四半期の業績は歴史的に高水準にある運用資産を背景に個人向け退職給付および団体向け退職給付における手数料収入増加を反映しています。その主因は、株式市場のパフォー
マンス並びに変額年金保険、インデックス型年金保険および団体向け退職給付の基礎的正味投資スプレッドの拡大でした。2017年通期の定額年金保険の基礎的正味投資スプレッドは、より低金利での再投資によるスプレッド縮小の影響にもかかわらず、前年と比べ基本的に横ばいとなりました。
レガシー – 2017年第4四半期の調整後税引前利益4億1,100万ドルには予想を上回る投資利益が含まれています。前年同期の調整後税引前利益11億ドルでしたが、これには韓国の商業用不動産売却による税引前利益11億ドルが含まれており、これは前年以前事故年度の当年度発生保険金により相殺されました。
AIGはこのほど、AIGの主たるランオフ再保険会社としてバミューダ諸島を本拠地とする法人DSAリインシュアランス・カンパニー・リミテッド（DSA Re）
を設立しました。DSA Reの主な目的はAIGのレガシ―生命保険および退職給付並びにレガシー損害保険のランオフ保険種目の再保険です。DSA Re設立により、AIGはあらゆる保険契約者向けコミットメントおよび顧客関係を守り続けながら、 レガシー契約を1つの法人と1つの経営の下に集約することにより業務の効率性を引き出すことができます。規制上の承認をすべて受けた後に出再されると予想される金額は約370億ドルまたはレガシーの保険準備金全額の80%超となり、AIGインベストメンツが運用する投資資産約400億ドルによって保証されます。
レガシー部門はその設立以来、親会社AIGに当初目標90億ドルを上回る100億ドルの資本を還元しています。2015年9月1日から2017年12月31日までに売却されたレガシー投資事案の簿価減損および損失の合計は10億ドルとなりました。
資本および流動性 – 2017年第4四半期に親会社AIGは現金および確定満期証券の形で生命保険および退職給付子会社から約2億9,000万ドルの配当並びにAIGの残存生命保険セトルメント契約の売却の正味収益11億ドルを含むレガシー資産収益化に伴う20億ドルを受け取りました。親会社AIGは2017年中の租税分
与支払いの調整の結果、第4四半期に保険子会社に対して12億ドルを払い戻しました。2017年末時点の親会社流動資産は73億ドルでした。
ヴァリダス・ホールディングス・リミテッド – AIGは2018年1月21日、再保険、元受保険およびアセット・マネージメント・サービスのリーディング・カンパ
ニーであるヴァリダス・ホールディングス・リミテッドを現金56億ドルで買収する契約を締結しました。この買収は、追加的な販売ルールを通じてAIGの現在の商品ポートフォリオを拡充し、引受のために利用できるツールを前進させることにより、AIGの世界全てにおける損害保険部門の事業を強化するものです。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。

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FOR IMMEDIATE RELEASE
2017年第4四半期の業績概要*
12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）

2016

2017

純利益（損失）$(6,660)$(3,041)

希薄化後1株当たり純利益（損失）(a)$(7.33)$(2.96)

調整後税引後利益（損失）

$

526

$

(2,787)

調整後希薄化後1株当たり利益（損失）(a)

$

0.57

$

(2.72)(38.7)%(14.7)%

調整後株主資本利益率

4.2%(18.2)%

調整後帰属株主資本利益率 – コア

2.6%

(22.9)

%

$

72.49

$

76.66

$

66.41

$

73.41

株主資本利益率

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*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。
(a) 損失を計上している期間については、基本的平均発行済普通株式を用いて希薄後1株当たり純利益（損失）を計算しています。

別段の記載がない限り、比較はすべて、2016年第4四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2017年第4四半期追加財務情報をご参照ください。

損害保険事業部門
12月31日までの3ヶ月間
2017（単位：百万米ドル）

2016

増減

損害保険事業部門合計
正味収入保険料

$

5,892

$

6,512

(10)

保険引受利益（損失）

$

(846)

$ (5,852)86

調整後税引前利益（損失）$13$ (4,847)

NM

78.3

146.7

(68.4)

異常災害損失および復活保険料(11.7)

(5.4)

(6.3)

前年以前事故発生年度の当年度発生保険金(1.4)(73.8)

72.4

保険事故年度の調整済み損害率

65.2

67.5

(2.3)

事業費率

35.0

35.8

(0.8)

コンバインド・レシオ

113.3

182.5

(69.2)

保険事故年度の調整済みコンバインド・レシオ

100.2

103.3

(3.1)

%

引受に関する比率:
損害率
損害率に対する影響：

3pts

FOR IMMEDIATE RELEASE
損害保険事業部門 – 北米
12月31日までの3ヶ月間
2017（単位：百万米ドル）

2016

増減

3,008

(14)

北米
正味収入保険料

$

2,583

$

コマーシャル・ライン

1,808

2,236

(19)

個人向け損害保険

775

772

-

(5,288)94

保険引受利益（損失）

$

(316)

$

コマーシャル・ライン

16(5,294)NM

個人向け損害保険

(332)

6

NM

(4,406)

NM

83.0

237.6

(154.6)

異常災害損失および復活保険料(24.5)(7.6)(16.9)

前年以前事故発生年度の当年度発生保険金

3.3(152.8)156.1

保険事故年度の調整済み損害率

61.8

77.2

(15.4)

事業費率

28.5

27.5

1.0

コンバインド・レシオ

111.5

265.1

(153.6)

保険事故年度の調整済みコンバインド・レシオ

90.3

104.7

(14.4)

73.9

294.8

(220.9)

異常災害損失および復活保険料(12.0)

(8.2)

(3.8)

前年以前事故発生年度の当年度発生保険金

4.9(202.3)207.2

保険事故年度の調整済み損害率

66.8

84.3

(17.5)

事業費率

25.3

23.9

1.4

コンバインド・レシオ

99.2

318.7

(219.5)

保険事故年度の調整済みコンバインド・レシオ

92.1

108.2

(16.1)

108.0

60.5

47.5

異常災害損失および復活保険料(58.6)(5.5)(53.1)

前年以前事故発生年度の当年度発生保険金

(1.1)

-

(1.1)

調整後税引前利益（損失）

$

412

$

%

引受に関する比率：
北米
損害率

pts

損害率に対する影響：

北米コマーシャル・ライン
損害率

pts

損害率に対する影響：

北米個人向け損害害保険
損害率
損害率に対する影響：:4pts

FOR IMMEDIATE RELEASE
保険事故年度の調整済み損害率

48.3

55.0

(6.7)

事業費率

37.5

38.7

(1.2)

コンバインド・レシオ

145.5

99.2

46.3

保険事故年度の調整済みコンバインド・レシオ

85.8

93.7

(7.9)



正味収入保険料は14%減少しました。北米コマーシャル・ラインの賠償責
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継続的実行が主因でした。



北米損害率の低下の主因は2016年第4四半期の準備金積み増しが主因です。
事故発生年度の調整済み損害率の15.4ポイントの改善は、主として2016
年第4四半期に実施された損失見積もりの調整の影響並びに料金設定と引受アクションおよび大規模災害損害再保険からの回収を反映しています。



調整後税引前利益4億1,200万ドルには異常災害損失6億8,200万ドルを含んでいます。異常災害損失は主としてカリフォルニア州の山火事に関連するもので、個人向け損害保険に大きな影響を及ぼしました。前年以前事故
年度の当年度発生戻入金9,700万ドルは主として北米コマーシャル・ライ
ンの改善によるものです。

損害保険事業部門 – 北米外
12月31日までの3ヶ月間
2017（単位：百万米ドル）

2016

増減

3,504

(6)

北米外
正味収入保険料

$

3,309

$

コマーシャル・ライン

1,422

1,466

(3)

個人向け損害保険

1,887

2,038

(7)

(564)

6

保険引受利益（損失）

$

(530)

$

コマーシャル・ライン

(603)

(647)

7

個人向け損害保険

73

83

(12)

(441)

10

74.7

71.9

2.8

異常災害損失および復活保険料

(2.2)

(3.5)

1.3

前年以前事故発生年度の当年度発生保険金

(4.8)

(8.9)

4.1

事故発生年度の調整済み損害率

67.7

59.5

8.2

事業費率

39.8

42.5

(2.7)

コンバインド・レシオ

114.5

114.4

0.1

調整後税引前損失

$

(399)

$

%

引受に関する比率：
北米外
損害率
損害率に対する影響：

5pts

FOR IMMEDIATE RELEASE
保険事故年度の調整済みコンバインド・レシオ

107.5

102.0

5.5

98.0

97.9

0.1

異常災害損失および復活保険料

(2.7)

(7.7)

5.0

前年以前事故発生年度の当年度発生保険金(11.4)(20.0)

8.6

事故発生年度の調整済み損害率

83.9

70.2

13.7

事業費率

37.7

38.2

(0.5)

コンバインド・レシオ

135.7

136.1

(0.4)

保険事故年度の調整済みコンバインド・レシオ

121.6

108.4

13.2

北米外・コマーシャル・ライン
損害率

pts

損害率に対する影響：

12月31日までの3ヶ月間（単位：百万米ドル）

2017

2016

増減

北米外個人向け損害保険
損害率

54.6

49.8

4.8

異常災害損失および復活保険料

(1.8)

(0.1)

(1.7)

前年以前事故発生年度の当年度発生保険金

0.8

0.7

0.1

事故発生年度の調整済み損害率

53.6

50.4

3.2

事業費率

41.7

46.3

(4.6)

コンバインド・レシオ

96.3

96.1

0.2

保険事故年度の調整済みコンバインド・レシオ

95.3

96.7

(1.4)

pts

損害率に対する影響：

正味収入保険料は報告ベースで6%減少しました。北米外・コマーシャ
ル・ラインにおける欧州での事業売却とリスク選別戦略および個人向け損
害保険における特定の地域からの戦略的撤退が主因です。



2017年第4四半期の損害率は2.8ポイント上昇して74.7ポイントとなりました。調整後保険事故年度損害率は、欧州における北米外・コマーシャ
ル・ラインの改善努力継続を主因に、8.2ポイント上昇して67.7ポイントとなりました。



調整後税引前損失3億9,900万ドルは北米外・コマーシャル・ラインの準備金および損失見積もりの引き上げが主因でした6

FOR IMMEDIATE RELEASE
生命保険および退職給付事業部門
12月31日までの3ヶ月間
2017（単位：百万米ドル）

2016

増減

1,186

79

生命保険および退職給付
収入保険料および手数料

$

2,123

$

正味投資利益

2,003

1,983

1

調整後収益

4,382

3,388

29

給付、損失および費用

3,600

2,522

43

調整後税引前利益

782

866

(10)

215

(2)

%

個人向け退職給付
収入保険料および手数料

$

210

$

正味投資利益

1,030

1,010

2

調整後収益

1,415

1,376

3

給付、損失および費用

941

834

13

調整後税引前利益

474

542

(13)

正味フロー

(422)

(321)

(31)

104

15

%

団体人向け退職給付
収入保険料および手数料

$

120

$

正味投資利益

550

558

(1)

調整後収益

732

716

2

給付、損失および費用

486

455

7

調整後税引前利益

246

261

(6)

正味フロー

(453)

(533)

15

%

12月31日までの3ヶ月間
2017（単位：百万米ドル）

2016

増減

679

8

生命保険
収入保険料および手数料

$

732

$

正味投資利益

263

263

-

調整後収益

1,013

956

6

給付、損失および費用

1,011

966

5

2

(10)

NM

188

464

152

5

調整後税引前利益（損失）%

機関投資家市場
収入保険料および手数料

$

1,061

正味投資利益

160

7

$

%

FOR IMMEDIATE RELEASE
調整後収益

1,222

340

259

給付、損失および費用

1,162

267

335

60

73

(18)

調整後税引前利益



個人向け退職給付では、収入保険料および保険契約手数料は一定でしたが、準備金調整額の増加により部分的に相殺されました。スプレッドは再投資率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定額年金保険からの予想外の利益増加およびインデックス型年金保険の伸びの恩恵を受けました。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、インデックス型および変額年金保険の準備金調整額の増加並びに平均資産減少によるオールターナティブ投資利益の減少は
手数料収入および基礎的正味投資スプレッドの増加により部分的に相殺されました。現在の投資環境を反映してスプレッドは縮小を続けました。基
礎的正味投資スプレッドは予想外の利益増加および資金コストの累積的アップデートの恩恵を受けました。団体向け退職給付の正味フローのマイナ
スは個人の解約減少により若干改善しました。



生命保険では、収入保険料、ユニバーサル生命保険および定期生命保険の収入保険料と預かり資産の堅調な増加は、死亡数の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、年金リスク移転の堅調な伸びが預かり資産増加および正味投資スプレッドの増加に寄与しました。

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

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
Matt Gallagher (Media): 212-458-3247; matthew.gallagher2@aig.com
AIG REPORTS FOURTH QUARTER 2017 RESULTSNEW YORK, February 8, 2018 - American International Group, Inc. (NYSE: AIG) today
reported a net loss of $6.7 billion, or $7.33 per share, for the fourth quarter of 2017, compared
to a net loss of $3.0 billion, or $2.96 per share, in the prior-year quarter. The fourth quarter of2017 net loss included a charge of $6.7 billion related to the enactment of the Tax Cuts andJobs Act (the Tax Act). Adjusted after-tax income was $526 million, or $0.57 per diluted share,
for the fourth quarter of 2017, compared to an adjusted after-tax loss of $2.8 billion, or $2.72
per share, in the prior-year quarter.
“The fourth quarter was another important step forward in positioning AIG for the future.
Since I joined the company in May, we’ve added to our talent base, assessed and initiatedunderwriting actions, and established a new operating structure. 2017 represents a starting
point from which we expect to build and 2018 will be a year of execution. Our actions todiversify our business and pursue profitable growth were further reflected in our January
announcement of the acquisition of Validus,” said Brian Duperreault, President and Chief
Executive Officer.
“Our fourth quarter and full year 2017 results were significantly impacted by catastrophe
losses. Despite full year record catastrophe losses of $4.2 billion, we delivered approximately$1.5 billion in pre-tax income and over $3.0 billion in adjusted pre-tax income. Importantly,
our fourth quarter reserve review resulted in modest net adverse development and our General
Insurance North America Commercial business showed notable improvement and reservestability. Personal Insurance and Life and Retirement operations continued to deliver solid
performance and benefit from their diversified offerings.”

FOURTH QUARTER AND FULL YEAR 2017 HIGHLIGHTS
General Insurance Results – Fourth quarter adjusted pre-tax income of $13 million included$762 million of catastrophe losses, of which $572 million related to the wildfires in California.
North America adjusted pre-tax income of $412 million was offset by an International
adjusted pre-tax loss of $399 million. The fourth quarter reflected modest net prior year
adverse loss reserve development of 1.4 points, driven by International Commercial lines. The
fourth quarter and full year of 2017 loss ratios were 78.3 and 83.2, respectively. The accident
year loss ratio, as adjusted was 65.2, a 2.3 point improvement compared to the prior year
quarter. For the full year, the accident year loss ratio, as adjusted was 63.0, a 1.1 point
increase from a year ago.

1

FOR IMMEDIATE RELEASE

Life and Retirement Results – Fourth quarter adjusted pre-tax income of $782 million included
a charge of approximately $90 million for adjustments, primarily within Individual Retirement
and Group Retirement, due to the ongoing modernization of actuarial systems and related
model refinements. The fourth quarter of 2017 reflected higher fee income for Individual
Retirement and Group Retirement due to historically high assets under administration driven
by equity market performance and higher base net investment spread in Variable and Index
Annuities, as well as Group Retirement. Full year base net investment spread for Fixed
Annuities remained essentially flat with the prior year despite the impact of spreadcompression from reinvesting at lower rates.
Legacy – Fourth quarter adjusted pre-tax income of $411 million, compared to $1.1 billion in
the prior year quarter, included higher than expected investment returns. The fourth quarter of2016 included a pre-tax gain of $1.1 billion from the sale of commercial real estate in South
Korea offset by unfavorable prior year loss reserve development.
AIG recently formed a Bermuda-domiciled legal entity named DSA Reinsurance Company,
Ltd. (DSA Re) to act as AIG’s main run-off reinsurer. DSA Re’s primary purpose is to reinsure
AIG’s Legacy Life and Retirement and Legacy General Insurance run-off lines. DSA Re willallow AIG to derive operational efficiencies by consolidating its legacy books in one legal
entity and under one management team, while continuing to honor all policyholder
commitments and client relationships. The amount expected to be reinsured upon receipt of all
regulatory approvals represents approximately $37 billion or over 80% of Legacy total
insurance reserves and will be backed with approximately $40 billion of invested assets
managed by AIG Investments.
Since its establishment, Legacy has returned $10.0 billion of capital to AIG Parent, surpassing
its original goal of $9.0 billion. Total book value impairments and losses on sales from Legacy
investments that were sold from September 1, 2015 through December 31, 2017 totaled $1.0
billion.
Capital and Liquidity – In the fourth quarter of 2017, AIG Parent received approximately $290
million in dividends in the form of cash and fixed maturity securities from its Life andRetirement companies, as well as $2.0 billion associated with Legacy asset monetizations,
including net proceeds of $1.1 billion from the sale of AIG’s remaining life settlements
contracts. AIG Parent reimbursed $1.2 billion in the quarter to its insurance companies as aresult of adjustments made to tax sharing payments during the year. At the end of 2017, Parent
liquidity stood at $7.3 billion.
Validus Holdings Ltd. – On January 21, 2018 AIG entered into an agreement to acquire
Validus Holdings Ltd., a leading provider of reinsurance, primary insurance and asset
management services, for $5.6 billion in cash. This transaction will strengthen AIG’s global
General Insurance business by expanding its current product portfolio through additional
distribution channels and advancing the tools available for underwriting. The transaction is
expected to close in mid-2018 and is subject to obtaining the relevant regulatory approvals andother customary closing conditions.

2FOR IMMEDIATE RELEASE

FOURTH QUARTER FINANCIAL SUMMARY*
Three Months Ended
December 31,($ in millions, except per share amounts)
Net income (loss)
Net income (loss) per diluted share (a)Adjusted after-tax income (loss)
Adjusted after-tax income (loss) per diluted share (a)2017(6,660)(7.33)
526
0.57

$
$
$
$

Return on equity
Adjusted return on equity
Adjusted return on attributed equity - Core

$
$
$
$

2016
(3,041)(2.96)(2,787)(2.72)(38.7) %
4.2 %
2.6 %

Book value per common share
Book value per common share, excluding accumulated other comprehensive income

$
$

72.49
66.41

(14.7) %(18.2) %(22.9) %
$
$

76.66
73.41

*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.
(a) For periods reporting a loss, basic average common shares outstanding are used to calculate net income (loss) per diluted share.

All comparisons are against the fourth quarter of 2016, unless otherwise indicated. Refer to the
AIG Fourth Quarter 2017 Financial Supplement, which is posted on AIG's website in theInvestor Information section, for further information.

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

3

2017
$
$
$

2016

Change5,892 $
(846) $
13 $

6,512
(5,852)(4,847)(10) %
86
NM

78.3

146.7

(68.4) pts(11.7)
(1.4)
65.2
35.0
113.3
100.2

(5.4)
(73.8)
67.5
35.8
182.5
103.3

(6.3)
72.4
(2.3)
(0.8)
(69.2)(3.1)

FOR IMMEDIATE RELEASE

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

2017

2016

Change

$

2,583
1,808
775

$

3,008
2,236
772

(14) %(19)-

Underwriting income (loss)
Commercial Lines
Personal Insurance$(316) $
16(332)

(5,288)(5,294)
6

94
NM
NM

Adjusted pre-tax income (loss)$

412(4,406)

NM

83.0

237.6

(154.6) pts(24.5)
3.3
61.8
28.5
111.5
90.3

(7.6)
(152.8)
77.2
27.5
265.1
104.7

(16.9)
156.1(15.4)
1.0(153.6)(14.4)

73.9

294.8

(220.9) pts(12.0)
4.9
66.8
25.3
99.2
92.1

(8.2)
(202.3)
84.3
23.9
318.7
108.2

(3.8)
207.2
(17.5)
1.4(219.5)(16.1)

108.0

60.5

47.5 pts(58.6)
(1.1)
48.3
37.5
145.5
85.8

(5.5)
55.0
38.7
99.2
93.7

(53.1)
(1.1)
(6.7)
(1.2)
46.3
(7.9)

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
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



4

$

Net premiums written decreased by 14%, primarily due to continued execution of ourstrategic portfolio actions in North America Commercial Lines Casualty and Propertylines of business.

FOR IMMEDIATE RELEASE

The reduction in the North America loss ratio was driven by the fourth quarter 2016
reserve additions. The 15.4 point improvement in the accident year loss ratio, as
adjusted primarily reflects the impact of adjustments to the loss estimates that weremade in the fourth quarter of 2016, as well as pricing and underwriting actions, andrecoveries from reinsurance on severe losses.

Adjusted pre-tax income of $412 million included $682 million of catastrophe-related
losses, which were primarily related to the California wildfires and largely impacted
Personal Insurance. Favorable loss reserve development of $97 million was primarily
due to improvement in North America Commercial Lines.

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

2017

2016

Change

$

3,309
1,422
1,887

$

3,504
1,466
2,038

(6) %
(3)
(7)

Underwriting income (loss)
Commercial Lines
Personal Insurance$(530) $
(603)
73

(564)
(647)
83

6
7
(12)

Adjusted pre-tax loss$

(399) $

(441)

10

74.7

71.9

2.8 pts

(2.2)
(4.8)
67.7
39.8
114.5
107.5

(3.5)
(8.9)
59.5
42.5
114.4
102.0

1.3
4.1
8.2
(2.7)
0.1
5.5

98.0

97.9

0.1 pts(2.7)(11.4)
83.9
37.7
135.7
121.6

(7.7)
(20.0)
70.2
38.2
136.1
108.4

5.0
8.6
13.7
(0.5)
(0.4)
13.2

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

5

FOR IMMEDIATE RELEASE

Three Months Ended December 31,

2017($ in millions)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

2016

Change54.6

49.8

4.8 pts

(1.8)
0.8
53.6
41.7
96.3
95.3

(0.1)
0.7
50.4
46.3
96.1
96.7

(1.7)
0.1
3.2
(4.6)
0.2
(1.4)



Net premiums written decreased 6% on a reported basis primarily driven by divestituresand risk selection strategy in Europe in International Commercial Lines and strategic
country exits for Personal Insurance.



The loss ratio increased 2.8 points to 74.7 in the fourth quarter of 2017. The accident year
loss ratio, as adjusted increased 8.2 points to 67.7 primarily due to continued remediation
efforts of International Commercial Lines in Europe.



Adjusted pre-tax loss of $399 million was largely due to the strengthening of reserves andloss estimates in International Commercial Lines.

LIFE AND RETIREMENT
Three Months Ended December 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
Group Retirement
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income
Net flows

6

2017

2016

Change

$

2,123
2,003
4,382
3,600
782

$

1,186
1,983
3,388
2,522
866

79 %
1
29
43
(10)

$

210 $
1,030
1,415
941
474
(422)

215
1,010
1,376
834
542
(321)

(2) %
2
3
13
(13)
(31)

$

120 $
550
732
486
246
(453)

104
558
716
455
261
(533)

15 %
(1)
2
7
(6)
15

FOR IMMEDIATE RELEASE

Three Months Ended December 31,

2017($ in millions)Life Insurance
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income (loss)
Institutional Markets
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income

2016

Change

$

732 $
263
1,013
1,011
2

679
263
956
966
(10)

8 %
6
5
NM

$

1,061 $
160
1,222
1,162
60

188
152
340
267
73

464 %
5
259
335
(18)



In Individual Retirement, premiums and policy fees remained constant and were partially
offset by an increase in reserve adjustments. Spreads continued to see compression fromlower reinvestment rates. Base net investment spreads benefited from unexpected accretion
income for Fixed Annuities and growth in Index Annuities. Overall net flows continued tobe negative reflecting the regulatory uncertainties and disruption in the industry, partially
offset by inflows to Index Annuities.



In Group Retirement, higher reserve adjustments for Index and Variable Annuities andlower alternative investment income from lower average assets were partially offset byhigher fee income and base net investment spread. Spreads continued to see compression
from the current investment environment. Base net investment spread benefitted from
unexpected accretion income and a cumulative update to cost of funds. Group Retirement
negative net flows improved slightly due to lower individual surrenders.



In Life Insurance, strong growth in premiums, and premiums and deposits, in universal
life and term life and were partially offset by elevated mortality.



In Institutional Markets, strong growth in pension risk transfer contributed to higher
assets under management and an increase in net investment spread.

CONFERENCE CALL
AIG will host a conference call tomorrow, Friday, February 9, 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.
7

FOR IMMEDIATE RELEASE

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, 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
AIG’s belief regarding future events, many of which, by their nature, are inherently uncertain andoutside 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 address, among other things, AIG’s:














exposures to subprime mortgages, monoline insurers, the residential and commercial realestate markets, state and municipal bond issuers, sovereign bond issuers, the energy sector
and currency exchange rates;
exposure to European governments and European financial institutions;strategy for risk management;
actual and anticipated sales, monetizations and/or acquisitions of businesses or assets,
including AIG’s ability to successfully consummate the purchase of Validus Holdings,
Ltd.;
restructuring of business operations, including anticipated restructuring charges and annual
cost savings;
generation of deployable capital;
strategies to increase return on equity and earnings per share;
strategies to grow net investment income, efficiently manage capital, grow book value percommon share, and reduce expenses;
anticipated organizational, business and regulatory changes;
strategies for customer retention, growth, product development, market position, financial
results and reserves;management of the impact that innovation and technology changes may have on customer
preferences, the frequency or severity of losses and/or the way AIG distributes andunderwrites its products;
segments’ revenues and combined ratios; andmanagement succession and retention plans.

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 conditions;
negative impacts on customers, business partners and other stakeholders;the occurrence of catastrophic events, both natural and man-made;significant legal, regulatory or governmental proceedings;

FOR IMMEDIATE RELEASE












the timing and applicable requirements of any regulatory framework to which AIG is
subject, including as a global systemically important insurer;
concentrations in AIG’s investment portfolios;
actions by credit rating agencies;
judgments concerning casualty insurance underwriting and insurance liabilities;
AIG’s ability to successfully manage Legacy portfolios;
AIG’s ability to successfully reduce costs and expenses and make business andorganizational changes 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.;
judgments concerning the recognition of deferred tax assets;
judgments concerning estimated restructuring charges and estimated cost savings; 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 Reports on
Form 10-Q for the quarterly periods ended September 30, 2017, June 30, 2017 and March
31, 2017, Part II, Item 7. MD&A and Part I, Item 1A. Risk Factors in AIG’s Annual Reporton Form 10-K for the year ended December 31, 2016 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 (which will be filed with the SEC).

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 madefrom time 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 Fourth Quarter 2017
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 they9

FOR IMMEDIATE RELEASE

eliminate 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 commonshare 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
10

FOR IMMEDIATE RELEASE

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.
Adjusted Pre-tax Income (APTI) is derived by excluding the following items from income fromcontinuing 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 operating segments.
• changes in fair value of securities used tohedge guaranteed living benefits;• 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;• loss (gain) on extinguishment of debt;• net realized capital gains and losses;• non-qualifying derivative hedging activities,
excluding net realized capital gains andlosses;• income or loss from discontinued operations;• pension expense related to a one-time lumpsum payment to former employees;• income and loss from divested
businesses;• non-operating litigation reserves andsettlements;• restructuring and other costs related toinitiatives designed to reduce operating
expenses, improve efficiency andsimplify 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 12 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 exclude 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 (loss)/net income (loss), including noncontrolling interests
Noncontrolling interest
Pre-tax income (loss)/net income (loss) attributable to AIG
Adjustments:
Changes in uncertain tax positions and other tax adjustments
Deferred income tax valuation allowance charges
Impact of Tax Act
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 from divested businesses
Non-operating litigation reserves and settlements
Net loss reserve discount (benefit) charge
Pension expense related to a one-time lump sum payment
to former employees
Restructuring and other costs
Adjusted pre-tax income (loss)/Adjusted after-tax income (loss)

Pre-tax income (loss)/net income (loss), including noncontrolling interests
Noncontrolling interest
Pre-tax income (loss)/net income (loss) attributable to AIG
Adjustments:
Changes in uncertain tax positions and other tax adjustments
Deferred income tax valuation allowance charges
Impact of Tax Act
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(Income) loss from discontinued operations
Income from divested businesses
Non-operating litigation reserves and settlements
Net loss reserve discount (benefit) charge
Pension expense related to a one-time lump sum payment
to former employees
Restructuring and other costs
Adjusted pre-tax income/Adjusted after-tax income

14

$

$

$

$

Pre-tax875
875

Three Months Ended December 31,
2017
2016
Tax Effect After-tax
Pre-tax
Tax Effect$
7,544 $ (6,673) $ (3,455) $
(985)
13
7,544
(6,660)(3,455)(985)

After-tax$ (2,485)(556)(3,041)

-

(461)
(66)
(6,687)

461
66
6,687

-

247
(87)
-

(247)
87
-

(29)

(10)

(19)

150

53

97

(108)

(38)

(70)

(286)

(100)

(186)

45
(1)
274
(241)
(43)
(96)

15
(1)
105
(82)
(15)
(36)

30
169
1
3
(159)
(28)
(60)

(27)
(2)
1,115
(194)
2
(750)

(10)
344
(186)
1
(263)

(17)
(2)
771
(21)
36
(8)
1
(487)

10
154
840

4
55
327

6
99
526

147
206
(3,094)

51
72
(863)

96
134
(2,787)Pre-tax
1,466
1,466

$

$

$

$

Twelve Months Ended December 31,
2017
2016
Tax Effect After-tax
Pre-tax
Tax Effect$
7,526 $ (6,063) $(74) $
185
(21)
7,526
(6,084)
(74)
185

$

After-tax
$
(288)
(561)
(849)

-

(488)
(43)
(6,687)

488
43
6,687

-

63
(83)
-

(63)
83
-

(146)

(51)

(95)

(120)

(42)

(78)

(303)

(106)

(197)

(195)

(68)

(127)

303
(5)
1,380
(68)
(129)
187

106
(2)
506
(41)
(45)
65

197
(3)
874
7
(4)
(27)
(84)
122

(42)
74
1,944
(545)
(41)
(427)

(15)
26
561
(309)
(14)
(150)

(27)
48
1,383
(61)
90
(236)
(27)
(277)

60
413
3,158

21
145
906

39
268
2,231

147
694
1,415

51
243
448

96
451
406

$

$

$

$

$

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

Summary of Key Financial Metrics

Income (loss) per common share:Basicloss from continuing operations
Loss from discontinued operations

Three Months Ended December 31,% Inc.
2017
2016(Dec.)

Twelve Months Ended December 31,% Inc.
2017
2016(Dec.)$Net loss attributable to AIG$

Dilutedloss from continuing operations
Loss from discontinued operations$

Net loss attributable to AIG
Adjusted after-tax income (loss) attributable to AIG per diluted share (a)$$(7.33)(7.33)$(7.33)(7.33)
0.57$

Weighted average shares outstanding:
Basic
Diluted (a)(b)

908.1
908.1

Return on equity (c)Adjusted return on equity (d)(38.7) %4.2 %As of period end:
Total AIG shareholders' equity
Accumulated other comprehensive income (AOCI)
Total AIG shareholders' equity, excluding AOCI
Deferred tax assets
Total adjusted AIG shareholders' equity

As of period end:
Book value per common share (e)Book value per common share, excluding AOCI (f)Adjusted book value per common share (g)Total common shares outstanding$$$(2.93)(0.03)(2.96)(150.2) %NM(147.6)$(2.93)(0.03)(2.96)(2.72)(150.2)
NM(147.6)
NM %

$

$

$
$

1,023.9
1,023.9(6.54)(6.54)$(6.54)(6.54)
2.34

$

$

$
$

930.6
930.6

(14.7) %(18.2) %$December 31, 2017
65,171
5,465
59,706
10,492
49,214NM %NM
NM(0.70)(0.08)(0.78)
0.36

NM
NM
NM
NM %

1,091.1
1,091.1(8.4) %
4.1 %$

(0.70)(0.08)(0.78)(1.0) %
0.6 %$December 31, 2016
76,3003,230
73,07014,77058,300$December 31, 2017
December 31, 2016 % Inc. (Dec.)
$
72.49
$
76.66
(5.4) %
$
66.41
$
73.41
(9.5)
$
54.74
$
58.57
(6.5)
899.0

995.3

Financial highlights - notes(a) For the quarters ended December 31, 2017 and 2016, because we reported net losses and for the quarter ended December 31, 2016, because we reported an adjusted after-tax
loss, all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts, and for the twelve months
ended December 31, 2017 and 2016, because we reported net losses, all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted sharesand diluted per share amounts. We reported an adjusted after-tax income for the three months ended December 31, 2017, and years ended December 31, 2017 and 2016; therefore,
we reported earnings per share on diluted basis. For the three months ended December 31, 2017 and years ended December 31, 2017 and 2016, the weighted average outstanding
shares - diluted includes 20,155,385, 22,412,682 and 30,326,772 dilutive shares, respectively.
(b) Diluted shares in the diluted EPS calculation represent basic shares for the three months ended December 31, 2017 and 2016 and twelve months ended December 31, 2017 and2016 due to the net loss in that period.
(c) Computed as Annualized net income (loss) attributable to AIG divided by average AIG shareholders' equity. Equity includes AOCI and DTA.
(d) Computed as Annualized Adjusted after-tax Income attributable to AIG divided by Adjusted Shareholders' Equity.
(e) Represents total AIG shareholders' equity divided by Total common shares outstanding.
(f) Represents total AIG shareholders' equity, excluding AOCI, divided by Total common shares outstanding.
(g) 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
December 31,
2017
2016
Adjusted pre-tax income (loss)
Interest expense (benefit) on attributed financial debt

$

429
(31)
460
198
262

$

(4,195)(45)(4,150)(1,265)(2,885)$$39,93140,841
2.6 %$$

47,65150,302(22.9) %Adjusted pre-tax income (loss) including attributed interest expenses
Income tax expense (benefit)
Adjusted after-tax income (loss)
Ending adjusted attributed equity
Average adjusted attributed equity
Adjusted return on attributed equity

Reconciliations of Accident Year Loss Ratio, as Adjusted and Combined Ratio, as Adjusted
Twelve Months Ended
December 31,
2017
2016
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

83.2(16.1)
(4.0)
(0.1)
63.0

84.8
(4.4)
(18.5)
61.9

Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustment for ceded premium under reinsurance contract
Accident year combined ratio, as adjusted

117.3(16.1)
(4.0)
(0.1)
97.1

118.9
(4.4)
(18.5)
96.0

16