FOR IMMEDIATE RELEASE

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

本稿は2018年10月31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3四半期の決算を公表


2018年第3四半期は13億ドル、普通株式1株当たりでは1.41ドルの純損失を計上。これに対して、前年同期の純損失は17億ドル、普通株式1株当たり1.91ドル。



2018年第3四半期の調整後税引後損失は3億100万ドル、普通株式1株当たりでは0.34ドル。これに対して、前年同期の調整後税引後損失は11億ドル、普通株式1株当たりでは1.22ドル。



正味税引前大規模自然災害による損失は16億ドル（税引後13億ドル、普通株式1株当たりでは1.45ドル）で、事前に公表していた損失の範囲内。



年初来の正味前年以前事故年度の当年度発生保険金は、2018年第3四半期の正味前年以前事故年度の当年度発生保険金発生額1億7,000万ド
ルを含めて、横ばい。



損害保険事業部門は引き続き、アンダーライティング、再保険および経費削減を含む主要戦略的優先事項を重視。



生命保険および退職給付事業部門は、2018年第3四半期も2桁の堅調な調整後ROEならびに個人向け、団体向け退職給付および生命保険で販売増加を実現。



2018年第3四半期には普通株式およびワラントを合計3億5,000万ドルで買い戻し。年初来では10億ドルの買い戻し。

2018年10月31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3四半期の純損失が13億ドル、普通株式1株当たりでは1.41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17億ドル、普通株式1株当たりでは1.91ドルでした。2018年第3四半期の調整後税引後損失は3億100万ドル、普通株式1株当たりでは0.34ドルでした。これに対して、前年同期は調整
後税引後損失が11億ドル、普通株式1株当たりでは1.22ドルでした。
AIG社長兼CEOのブライアン・デュパロウは次のように述べました。「2018年
第3四半期、当社は長期的に持続可能で収益性のある成長を実現するために、引き続き戦略的優先事項を実行しました。損害保険事業部門は、世界中で数多く発生した大規模自然災害に対応する一方で、引受能力の向上、再保険構造の見直し、世界に通用する人材の補強および効率性の向上を含め、主要イニシア
ティブで引き続き進展を見せました。我々は順調に保険引受利益を生み出しています。生命保険および退職給付事業部門は、商品に関する専門知識と販売ネットワークの強みを反映して、販売増加と堅調な2桁のリターンを実現しました。」
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FOR IMMEDIATE RELEASE「今後も引き続き緊迫感を持って事業に臨み、将来に向けてAIGを適切な地位に位置付けるため全社を挙げて強い意志の下に行動をとってまいります。」

2018年第3四半期の業績概要*
9月30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

純損失

$

(1,259)$(1,739)希薄化後1株当たり純損失$(1.41)$(1.91)

調整後税引後損失

$

(301)

$

(1,111)

調整後希薄化後1株当たり損失$(0.34)$(1.22)

株主資本利益率(8.4) %

(9.5) %

調整後株主資本利益率(2.4) %

(8.4) %

調整後帰属株主資本利益率 – コア(3.6) %

(11.6) %普通株式1株当たりブック・バリュー

$

66.23

$

80.62

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

66.83

74.01

調整後普通株式１株当たりブック・バリュー

55.58

57.44

*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。

2018年第3四半期の業績概要
事前に公表された税引前大規模自然災害による損失16億ドルはAIGのグローバ
ル・プレゼンスを反映 –日本における大規模自然災害による損失は2018年第3四半期の大規模自然災害による損失全体の半分超を占めました。この損失は、
過去25年間で最悪となった日本の大規模自然災害シーズンの深刻さと発生頻度および日本最大の外資系損害保険会社（元受正味保険料ベース）としてのAIGのフットプリントを反映したものです。日本における大規模自然災害による損失は日本の再保険プログラムに基づく再保険金2億6,400万ドルの受け取り後のものです。北米における大規模自然災害による損失は2018年第3四半期の大規
模自然災害による損失全体の半分弱を占め、ハリケーン「フローレンス」やカリフォルニアの土砂災害の損失見込額の更新による影響を受けたものです。ヴァリダス・ホールディングス・リミテッドの正味大規模自然災害による損失の総額は約2億ドルとなりましたが、これはほとんど日本に関連したものでした。
AIGは、北米大規模災害集積再保険プログラムについて、カリフォルニアの土
砂災害とハリケーン「フローレンス」に加えて、ハリケーン「マイケル」に関する損失見込をハイエンドな水準で反映すると、7億5000万ドルの残余額のうち、約7億ドルを使いきることになると推測しています。
損害保険事業部門の保険事故年度のコンバインド・レシオは若干悪化、事故発
生年度ベースの損害率は改善 – 大規模自然災害による損失のグローバル集積カ
バーはアタッチメント・ポイントに – 2018年第3四半期の損害保険事業部門の損害率88.6ポイントには上記大規模自然災害による損失による22.0ポイントが含まれています。事故発生年度ベースの調整済み損害率は63.6ポイントとなり、
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FOR IMMEDIATE RELEASE
前期比および前年同期比で改善し、ここには大規模自然災害による損失1億5,300万ドル（2.2ポイント）が含まれています。AIGは大規模自然災害による損失の財物保険集積再保険カバーについてアタッチメント・ポイントに達しており、これが第4四半期の追加的大規模自然災害による損失に対する大幅なプ
ロテクションを提供しています。事業費率は前年同期とほぼ同水準の35.8ポイ
ントとなり、これは主として低い損害率と高い委託料契約に向けた個人向け損害保険事業構成の戦略的変更による、北米における獲得費用率の上昇を反映しています。事業費（GOE）は9億9,500万ドルで、前年同期比8.5%増となりました。ヴァリダスの事業費8,900万ドルを除くと、事業費は前年同期比1%減、
前期比5%減でした。
正味当年度発生保険金が漸増 – 年初来の正味前年以前事故年度の当年度発生保
険金は300万ドルの戻入でしたが、2018年第3四半期では当年度発生保険金発
生額が1億7,000万ドルとなりました。北米の個人向け損害保険事業部門の前年
以前事故年度の当年度発生保険金発生額は1億4,800万ドルとなりましたが、これは、2017年に発生したカリフォルニアでの山火事の損失見込みの更新が主因です。北米コマーシャル・ラインの当年度発生保険金は1,400万ドルで、コマーシャル自動車保険事業とショートテイル・ラインの保険金戻入およびアドバ
ース・デベロップメント再保険補償（ADC）からの繰延利益の償却利益が超過
賠償責任保険準備金の強化で部分的に相殺されたため、小幅戻入となりました。
超過賠償責任保険の当年度発生保険金には、ADCでカバーされる欠陥工事保険金および、2015年以前の事故年度に関連する現場におけるすべての工事請負業者をカバーする、複数年の建設プロジェクトに関連する損失増加が含まれています。また、2016および2017年の両事故年度の大規模自然災害による損失が予想を上回りました。ADCに基づく出再保険の対象で調整後税引前利益から除外された2015年以前事故年度の当年度発生保険金発生額の80%は7億2,300万ドルでした。ADCによってカバーされる事業に関連する支払保険金は12億ドルで、予想と一致しています。
グラットフェルター・インシュアランス・グループ買収で合意 – グラットフェ
ルター・インシュアランス・グループは質の高いプログラム引受能力をもたらし、AIGのプログラム事業の戦略的ポジショニングを加速すると期待されています。
生命保険および退職給付事業部門の利益は2桁の堅調な調整後ROEを実現 –2018年第3四半期の調整後税引前利益は7億1,300万ドルとなり、保険数理の年次更新によるマイナスの税引前調整9,800万ドルを反映しています。調整後
ROEは保険数理想定の更新を含めて11.2%、この項目の税引後の影響を除くと約13%でした。
レガシーの業績は大規模自然災害による損失を含む – 2018年第3四半期の調整
後税引前利益は、前年同期の2億8,600万ドルに対して、8,400万ドルとなりました。正味投資利益減少、日本における大規模自然災害による損失5,700万ド
ル、公正価値オプション資産からの利益減少および2017年の生命保険セトルメ
ント売却を反映しています。カーライル・グループL.P.へのフォーティチュード・ホールディングスについてのAIGの持ち株19.9%の売却は、2018年第4四半期に完了する見込みです。フォーティチュード・ホールディングスは、フォーティチュード・リインシュアランス（旧DSA Re）の親会社です。
正味投資利益はプライベート・エクイティの堅調なリターンを反映 – 2018年
第3四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、前年同期を1.4%上回る34億ドルとなりました。今回の業績にはヴァリダスが含まれており、プライベート・エクイティの堅調なリターンの恩恵を
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FOR IMMEDIATE RELEASE
受けています。2018年1～9月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99億ドルでした。

流動性および資本 – 2018年9月30日時点のAIGの親会社流動資産は約45億ドルでした。2018年第3四半期に親会社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18億ドルの配当を受け取り、普通株式660万株を3億4,800万ドルで、ワラントを200万ドルで買い戻しました。AIGは2018年第3四半期に約55億ドルでヴァリダス買収を完了しました。
普通株式１株当たりブック・バリュー – 2018年9月30日現在、普通株式１株当たりブック・バリューは 66.23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3.1%減少
して55.58ドルとなりました。この減少は主として大規模自然災害による損失
およびADC繰延利益の増加によるものです。

損害保険事業部門
9月30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
総収入保険料

$

8,668

$

8,426

3

%

正味収入保険料

$

6,835

$

6,577

4

保険引受損失$(1,726)$(3,796)55

調整後税引前損失

$

(825)

$

(2,933)

72

88.6

124.1

(35.5) pts

大規模自然災害による損失および復活保険料(22.0)(45.4)

23.4

前年以前事故発生年度の当年度発生保険金(2.7)(12.7)

10.0

再保険契約およびその他の出再保険料の調整

(0.3)

-

(0.3)

保険事故年度の調整済み損害率

63.6

66.0

(2.4)

事業費率

35.8

33.0

2.8

コンバインド・レシオ

124.4

157.1

(32.7)

保険事故年度の調整済みコンバインド・レシオ

99.4

99.0

0.4

引受に関する比率:
損害率
損害率に対する影響：

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損害保険事業部門 – 北米
9月30日までの3ヶ月間（単位：百万米ドル）

2018

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$

保険引受損失

3,164

2,942

8

2,229

2,118

5

935

824

13

(2,940)

66

(987)

$

$

%

コマーシャル・ライン(609)(2,684)77

個人向け損害保険

(378)

(256)

(48)

(2,193)

93

98.8

175.0

(76.2) pts

大規模自然災害による損失および復活保険料(23.7)(78.8)

55.1

前年以前事故発生年度の当年度発生保険金(4.8)(19.0)

14.2

再保険契約およびその他の出再保険料の調整

(0.5)

-

(0.5)

保険事故年度の調整済み損害率

69.8

77.2

(7.4)

事業費率

31.1

26.8

4.3

コンバインド・レシオ

129.9

201.8

(71.9)

保険事故年度の調整済みコンバインド・レシオ

100.9

104.0

(3.1)

98.5

205.0

(106.5) pts

大規模自然災害による損失および復活保険料(21.6)(95.7)

74.1

前年以前事故発生年度の当年度発生保険金(0.6)(25.6)

25.0

再保険契約およびその他の出再保険料の調整

(0.7)

-

(0.7)

保険事故年度の調整済み損害率

75.6

83.7

(8.1)

事業費率

26.6

23.3

3.3

コンバインド・レシオ

125.1

228.3

(103.2)

保険事故年度の調整済みコンバインド・レシオ

102.2

107.0

(4.8)

$

調整後税引前損失(160)$

引受に関する比率：
北米
損害率
損害率に対する影響：

北米コマーシャル・ライン
損害率
損害率に対する影響：

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9月30日までの3ヶ月間（単位：百万米ドル）

2018

2017

増減

北米個人向け損害保険
損害率

99.8

96.4

3.4

大規模自然災害による損失および復活保険料(29.7)(34.6)

4.9

前年以前事故発生年度の当年度発生保険金(16.9)(1.7)(15.2)

保険事故年度の調整済み損害率

53.2

60.1

(6.9)

事業費率

43.3

35.8

7.5

コンバインド・レシオ

143.1

132.2

10.9

保険事故年度の調整済みコンバインド・レシオ

96.5

95.9

0.6

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3四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3四半期追加財務情報をご参照ください。



調整後税引前損失1億6,000万ドルは、再保険調整後の大規模自然災害による損失7億9,100万ドルおよび大規模自然災害による損失8,800万ドルを含んでいます。正味前年以前事故年度の当年度発生保険金発生額1億3,400万
ドルには、2017年の大規模自然災害による損失による保険金発生額に関連する、個人向け損害保険の前年以前事故年度の当年度発生保険金発生額1億4,800万ドルが含まれていますが、NICOのADCからの繰延利益の償却を含む、コマーシャル・ラインの前年以前事故年度の当年度発生保険金戻入
1,400万ドルと部分的に相殺されました。正味投資利益の増加は、ヴァリ
ダス買収によるものでした。



正味収入保険料は7.5%増加しました。ヴァリダス買収による追加的保険料2億7,500万ドル、2018年の再保険プログラムの変更による出再保険料減少および個人向け損害保険の事業の増加が主因でした。



北米損害率の改善は、主に大規模自然災害による損失の大幅減少と前年以前事故年度の当年度発生保険金発生額の減少によるものです。保険事故年度の調整済み損害率の7.4ポイントの改善は、事業構成の変更および前年同期に比べた大規模自然災害による損失（1.1ポイント）の減少の影響によるものですが、2018年の再保険プログラムの変更の影響により部分的に相殺されています。2017年第3四半期には財物保険の年初来の保険事故年度損
失見積もりの増加を含んでいました。



事業費率の上昇は、個人向け損害保険事業構成の変更による獲得費用率の上昇および戦略的イニシアティブに関連する事業費の増加を反映しています。

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損害保険事業部門 – 北米外
9月30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

$

3,671

$

3,635

1 %

コマーシャル・ライン

1,810

1,652

10

個人向け損害保険

1,861

1,983

(6)

(856)

14

保険引受損失

$

(739)

$

コマーシャル・ライン

(423)

(956)

56

個人向け損害保険

(316)

100

NM

(740)

10

調整後税引前損失

$

(665)

$

引受に関する比率：
北米外
損害率

79.7

85.0

(5.3) pts

大規模自然災害による損失および復活保険料(20.5)(19.8)(0.7)

前年以前事故発生年度の当年度発生保険金

(1.0)

(7.9)

6.9

事故発生年度の調整済み損害率

58.2

57.3

0.9

事業費率

39.9

37.9

2.0

コンバインド・レシオ

119.6

122.9

(3.3)

保険事故年度の調整済みコンバインド・レシオ

98.1

95.2

2.9

87.6

124.1

(36.5) pts

大規模自然災害による損失および復活保険料(20.6)(41.7)

21.1

前年以前事故発生年度の当年度発生保険金(3.6)(17.9)

14.3

事故発生年度の調整済み損害率

63.4

64.5

(1.1)

事業費率

35.6

31.3

4.3

コンバインド・レシオ

123.2

155.4

(32.2)

保険事故年度の調整済みコンバインド・レシオ

99.0

95.8

3.2

損害率に対する影響：

北米外・コマーシャル・ライン
損害率
損害率に対する影響：

7

FOR IMMEDIATE RELEASE
9月30日までの3ヶ月間（単位：百万米ドル）

2018

2017

増減

北米外個人向け損害保険
損害率

72.4

51.7

20.7 pts(20.5)(1.1)(19.4)

1.5

0.7

0.8

事故発生年度の調整済み損害率

53.4

51.3

2.1

事業費率

43.8

43.4

0.4

コンバインド・レシオ

116.2

95.1

21.1

保険事故年度の調整済みコンバインド・レシオ

97.2

94.7

2.5

損害率に対する影響：
大規模自然災害による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3四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3四半期追加財務情報をご参照ください。



調整後税引前損失6億6,500万ドルは、再保険調整後の大規模自然災害による損失7億7,600万ドル、大規模自然災害による損失6,500万ドルおよび前年以前事故年度の当年度発生保険金発生額3,800万ドルを含んでいます。
正味投資利益の減少は持分法投資および公正価値オプション証券からの利益減少を反映したものです。



正味収入保険料は報告ベースおよび実質ベースとも小幅増加しました。正
味収入保険料の増加は、ヴァリダス買収に伴う追加保険料1億6,500万ドルの組み入れ、欧州のファイナンシャル・ライン事業の成長ならびにアジア太平洋地域の医療・傷害保険事業および個人向け事業の成長によるものです。



2018年第3四半期の損害率は79.7ポイントでした。事故発生年度ベースの損害率は、コマーシャル・ラインの小中規模な損害金の増加を主因として0.9ポイント上昇し、58.2ポイントとなりましたが、これは大規模自然災
害による損失が前年同期に比べて減少（1.8ポイント）したことで部分的に相殺されました。



事業費率は、事業構成の変更および2018年の再保険プログラムの変更により獲得費用率が上昇したことにより、上昇しました。

8

FOR IMMEDIATE RELEASE
生命保険および退職給付事業部門
9月30日までの3ヶ月間（単位：百万米ドル）

20182

2017

増減

生命保険および退職給付
収入保険料および手数料

$

943

$

2,001

(53) %

正味投資利益

1,960

1,907

3

調整後収益

3,146

4,136

(24)

給付、損失および費用

2,433

2,978

(18)

713

1,158

(38)

6,779

6,797

-

調整後税引前利益
収入保険料および預かり資産
個人向け退職給付
収入保険料および手数料

$

213

$

212

- %

正味投資利益

956

973

(2)

調整後収益

1,335

1,343

(1)

給付、損失および費用

942

625

51

調整後税引前利益

393

718

(45)

収入保険料および預かり資産

3,616

2,526

43

正味フロー

(545)

(718)

24

121

2 %

団体向け退職給付
収入保険料および手数料

$

124

$

正味投資利益

531

524

1

調整後収益

718

702

2

給付、損失および費用

476

453

5

調整後税引前利益

242

249

(3)

収入保険料および預かり資産

2,116

1,860

14

正味フロー

(986)

(15)

NM

727

(28) %

生命保険
収入保険料および手数料

$

520

$

正味投資利益

275

260

6

調整後収益

809

1,000

(19)

給付、損失および費用

793

888

(11)

調整後税引前利益

16

112

(86)

収入保険料および預かり資産

978

935

5

9

FOR IMMEDIATE RELEASE
9月30日までの3ヶ月間（単位：百万米ドル）

2018

2017

増減

941

91 %

機関投資家市場
収入保険料および手数料

$

86

$

正味投資利益

198

150

32

調整後収益

284

1,091

(74)

給付、損失および費用

222

1,012

(78)

調整後税引前利益

62

79

(22)

収入保険料および預かり資産

69

1,476

(95)

別段の記載がない限り、比較はすべて、2017年第3四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3四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、調整後税引前利益は年次保険数理想定更新の結果
としての正味不利調整額5,200万ドルを反映しています。前年同期は有利
な保険調整額が2億4,200万ドルありました。保険契約手数料は運用資産の拡大により増加、正味投資利益は利回り向上利益およびオルタナティブ投資利益の減少により減少しました。個人投資家向けミューチュアルファンドを除く正味フローは販売増加を反映してプラスとなりました。



団体向け退職給付では、調整後税引前利益は同事業への継続的投資を反映
していますが、これは保険契約手数料の増加、および高水準の運用資産を背景とする投資顧問料増加により部分的に相殺されました。収益強化利益
は、債券コールとテンダーの利益およびその他の投資利益の増加を主因に増加しました。利益増加およびその他の投資利益を除く基礎的利回りは前年同期と同程度でした。団体向け退職給付の正味フローは大口契約2件の解約による資金流出を反映しています。



生命保険では、調整後税引前利益は年次保険数理想定更新の結果としての正味不利調整額6,300万ドルを反映しています。前年同期は正味有利保険
調整額が2,900万ドルありました。死亡率は料率予想範囲に対して好転しました。



機関投資家市場では、調整後税引前利益は寿命の延長および保険契約手数料の減少を反映していますが、これは保有契約の継続的な増加と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

10

FOR IMMEDIATE RELEASE
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。

11

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 THIRD QUARTER 2018 RESULTS








Net loss of $1.3 billion, or $1.41 per share, for the third quarter of 2018, compared to a
net loss of $1.7 billion, or $1.91 per share, in the prior-year quarter
Adjusted after-tax loss of $301 million, or $0.34 per share, for the third quarter of
2018, compared to an adjusted after-tax loss of $1.1 billion, or $1.22 per share, in theprior-year quarter
Net pre-tax catastrophe losses of $1.6 billion ($1.3 billion after-tax or $1.45 per share)
within previously disclosed range
Net prior year loss reserve development was flat year-to-date, including net
unfavorable prior year loss reserve development of $170 million in the third quarter of2018
General Insurance focus continues on key strategic priorities including underwriting,reinsurance and expense reduction
Life and Retirement delivered another quarter of solid double-digit adjusted ROEs andsales growth in Individual and Group Retirement and Life Insurance
Share and warrant repurchases of $350 million for the third quarter of 2018 and $1.0
billion year-to-date

NEW YORK, October 31, 2018 - American International Group, Inc. (NYSE: AIG) today
reported a net loss of $1.3 billion, or $1.41 per share, for the third quarter of 2018, compared toa net loss of $1.7 billion, or $1.91 per share, in the prior-year quarter. Adjusted after-tax loss
was $301 million, or $0.34 per share, for the third quarter of 2018, compared to an adjusted
after-tax loss of $1.1 billion, or $1.22 per share, in the prior-year quarter.
“In the third quarter we continued to execute against our strategic priorities for delivering longterm, profitable growth,” said Brian Duperreault, President and Chief Executive Officer.
“While managing a significant number of global catastrophic events, General Insurance
continued to make progress against key initiatives, including improving underwriting
capabilities, repositioning reinsurance structures, adding world class talent and driving
efficiencies. We remain on track to produce an underwriting profit. Life and Retirement
achieved increased sales and solid double digit returns, reflecting the strength of our productexpertise and distribution networks.”
Mr. Duperreault added, “Looking ahead, we continue to work with a sense of urgency and aretaking decisive actions across the company to position AIG for the future.”

1

FOR IMMEDIATE RELEASE

THIRD QUARTER FINANCIAL SUMMARY*
Three Months Ended
September 30,($ in millions, except per share amounts)
Net loss
Net loss per diluted share
Adjusted after-tax loss
Adjusted after-tax loss 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 share2018(1,259)(1.41)(301)(0.34)

$
$
$
$

2017
(1,739)(1.91)(1,111)(1.22)(8.4) %
(2.4) %
(3.6) %
$

66.23
66.83
55.58

(9.5) %
(8.4) %
(11.6) %
$

80.62
74.01
57.44

*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.

THIRD QUARTER 2018 HIGHLIGHTS
Previously Disclosed Pre-tax Catastrophe Losses of $1.6 billion Reflect AIG’s Global
Presence – Catastrophe losses in Japan represented over half of the overall catastrophe losses
in the quarter. Our losses reflect the unique severity and frequency of one of Japan’s worst
catastrophe seasons in 25 years and AIG’s footprint as the largest foreign-based insurer in the
country. Japan catastrophe losses are net of $264 million of reinsurance recoveries under ourJapanese reinsurance program. Catastrophe losses in North America accounted for just under
half of the overall catastrophe losses in the quarter and were largely due to Hurricane Florence
and revisions to the loss estimates on the California mudslides. Validus’ net catastrophe losses
totaled approximately $200 million, which were mostly Japan-related. AIG estimates that it
has exhausted approximately $700 million of the $750 million retention under its North
America aggregate catastrophe reinsurance program following the California mudslides,
Hurricane Florence and assuming the high end of the previously disclosed loss estimate rangefor Hurricane Michael.
General Insurance Accident Year Combined Ratio Slightly Deteriorates, Accident Year Loss
Ratio Improves – Severe Loss Global Aggregate Cover Attaches – Third quarter General
Insurance loss ratio of 88.6 included 22.0 points from the aforementioned catastrophe losses.
The accident year loss ratio, as adjusted, of 63.6 improved on a sequential and year-over-yearbasis and included severe losses of $153 million (2.2 pts). In the third quarter, AIG reached theattachment point on the property aggregate reinsurance cover for severe losses, offering asignificant level of protection against additional severe losses in the fourth quarter. The third
quarter expense ratio of 35.8 compared to the prior year quarter primarily reflected an increasein the North America acquisition ratio due to strategic changes in Personal Insurance businessmix towards lower loss ratio and higher commission businesses. General operating expenses(GOE) of $995 million increased 8.5% compared to the prior-year quarter. Excluding Validus
2FOR IMMEDIATE RELEASEGOE of $89 million, GOE decreased 1% compared to the prior-year quarter and decreased 5%
on a sequential basis.
Incremental Net Loss Reserve Development – Net prior year loss reserve development year-todate was favorable by $3 million, and adverse by $170 million for the quarter. North America
Personal Insurance was adverse by $148 million for the quarter driven largely by updated loss
estimates for the 2017 California wildfires. North America Commercial Lines reserves wereslightly favorable by $14 million, as favorable development on Commercial Auto, short-taillines and the amortization benefit from the adverse development cover (ADC) deferred gain
were partially offset by the strengthening of Excess Casualty reserves. Excess Casualty
development included higher loss activity related to construction defects claims and multi-year
construction projects that cover all contractors on the site associated with accident years 2015
and prior, which are covered under the ADC. We also saw higher than expected loss severity
for accident years 2016 and 2017. The 80% share of the 2015 and prior adverse reserve
development that was ceded under the ADC and excluded from Adjusted pre-tax income was$723 million. Paid claims related to the business covered by the ADC were $1.2 billion andremain consistent with expectations.
Agreement To Acquire Glatfelter Insurance Group – Glatfelter Insurance Group is expected tobring high-quality program underwriting capabilities and accelerate the strategic positioning ofour programs business.
Life and Retirement Earnings Deliver Solid Double Digit Adjusted ROE – Third quarter
adjusted pre-tax income was $713 million reflecting a negative pre-tax adjustment of $98
million from our annual actuarial update. Adjusted ROE was 11.2% including the actuarial
assumption update or approximately 13% excluding the after-tax impact of this item.
Legacy Results Include Catastrophe Losses – Third quarter adjusted pre-tax income of $84
million, compared to $286 million in the prior-year quarter, reflected lower net investment
income, catastrophe losses in Japan of $57 million and lower gain from fair value option assets,
as well as the sale of the Life Settlement portfolio in 2017. The sale of 19.9% of AIG’s
ownership interest in Fortitude Holdings, the parent of Fortitude Re (formerly DSA Re), to The
Carlyle Group L.P. is expected to close in the fourth quarter.
Net Investment Income Reflects Strong Private Equity Returns – Third quarter net investment
income from our insurance companies, including the Legacy insurance portfolios, increased
1.4% from the prior-year quarter to $3.4 billion. The third quarter included Validus andbenefited from strong private equity returns. Net investment income from our insurancecompanies including the Legacy insurance portfolios, totaled $9.9 billion for the first ninemonths of 2018.
Liquidity and Capital – As of September 30, 2018, AIG Parent liquidity stood at approximately$4.5 billion. In the third quarter, AIG Parent received approximately $1.8 billion of
distributions from insurance subsidiaries in the form of cash and fixed maturity securities,
including tax sharing payments. In the third quarter, AIG repurchased 6.6 million shares ofcommon stock for $348 million and warrants for $2 million. AIG completed the acquisition of
Validus for $5.5 billion in the third quarter.
3

FOR IMMEDIATE RELEASE

Book Value per Common Share – As of September 30, 2018, book value per common share
was $66.23 compared to $72.49 at December 31, 2017. Book value per common shareexcluding accumulated other comprehensive income and deferred tax assets (Adjusted bookvalue per common share) decreased 3.1% to $55.58 in the third quarter primarily due tocatastrophe losses and an increase in the ADC deferred gain.
GENERAL INSURANCE
Three Months Ended September 30,($ in millions)
Total General Insurance
Gross premiums written
Net premiums written
Underwriting loss
Adjusted pre-tax loss
Underwriting ratios:
Loss ratio
Impact on loss ratio:
Catastrophe losses and reinstatement premiums
Prior year development
Adjustments for ceded premium under reinsurance
contracts and otherAccident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted

4

2018
$
$
$
$

2017

Change8,668 $
6,835 $
(1,726) $(825) $

8,426
6,577
(3,796)(2,933)

3 %
4
55
72

88.6

124.1

(35.5) pts(22.0)(2.7)(45.4)(12.7)

23.4
10.0

(0.3)
63.6
35.8
124.4

66.0
33.0
157.1

(0.3)
(2.4)
2.8
(32.7)

99.4

99.0

0.4

FOR IMMEDIATE RELEASE

General Insurance - North America
Three Months Ended September 30,($ in millions)North America
Net premiums written
Commercial Lines
Personal Insurance

2018

2017

Change

$

3,164
2,229
935

$

2,942
2,118
824

8 %
5
13

Underwriting loss
Commercial Lines
Personal Insurance$(987) $
(609)
(378)

(2,940)(2,684)
(256)

66
77
(48)

Adjusted pre-tax loss$(160) $

(2,193)

93

98.8

175.0

(76.2) pts(23.7)(4.8)(78.8)(19.0)

55.1
14.2

(0.5)
69.8
31.1
129.9
100.9

77.2
26.8
201.8
104.0

(0.5)
(7.4)
4.3
(71.9)
(3.1)

98.5

205.0

(106.5) pts(21.6)(0.6)(95.7)(25.6)

74.1
25.0

(0.7)
75.6
26.6
125.1
102.2

83.7
23.3
228.3
107.0

(0.7)
(8.1)
3.3
(103.2)
(4.8)

99.8

96.4

(29.7)(16.9)
53.2
43.3
143.1
96.5

(34.6)
(1.7)
60.1
35.8
132.2
95.9

Underwriting ratios:
North America
Loss ratio
Impact on loss ratio:
Catastrophe losses and reinstatement premiums
Prior year development
Adjustments for ceded premium under reinsurance
contracts and otherAccident 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
Adjustments for ceded premium under reinsurance
contracts and otherAccident 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

5

3.4 pts
4.9(15.2)
(6.9)
7.5
10.9
0.6

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



Adjusted pre-tax loss of $160 million included $791 million of catastrophe-related
losses, net of reinsurance, and $88 million of severe losses. Net unfavorable prior year
loss reserve development of $134 million included $148 million of unfavorable prioryear loss development in Personal Insurance primarily related to development from2017 catastrophe losses, partially offset by $14 million of favorable prior year loss
development from Commercial Lines which included the amortization of the deferredgain from the ADC with NICO. The increase in net investment income was primarily
driven by the Validus acquisition.

Net premiums written increased by 7.5%, largely due to additional premiums from theacquisition of Validus of $275 million, lower ceded premiums due to changes in the2018 reinsurance programs and growth in Personal Insurance businesses.



The improvement in the North America loss ratio was driven by significantly lower
catastrophe losses and lower unfavorable prior year loss reserve development. The
accident year loss ratio, as adjusted, improved 7.4 points, benefiting from changes in
portfolio mix and the impact of lower severe losses (1.1 pts) compared to the prior-year
quarter, partially offset by the impact of changes in 2018 reinsurance programs. The
third quarter 2017 included a year-to date increase in accident year loss estimates for
Property.



The increase in the expense ratio reflected a higher acquisition expense ratio driven bychanges in Personal Insurance’s portfolio mix and an increase in GOE related to
strategic initiatives.

General Insurance - International
Three Months Ended September 30,($ in millions)International
Net premiums written
Commercial Lines
Personal Insurance

2018

2017

Change

$

3,671
1,810
1,861

$

3,635
1,652
1,983

1 %
10
(6)

Underwriting loss
Commercial Lines
Personal Insurance$(739) $
(423)
(316)

(856)
(956)
100

14
56
NM

Adjusted pre-tax loss$

(665) $

(740)

10

6

FOR IMMEDIATE RELEASE

Three Months Ended September 30,($ in millions)
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

2018

2017

Change79.7

85.0(5.3) pts

(20.5)
(1.0)
58.2
39.9
119.6
98.1

(19.8)
(7.9)
57.3
37.9
122.9
95.2

(0.7)
6.9
0.9
2.0
(3.3)
2.9

87.6

124.1

(36.5) pts(20.6)
(3.6)
63.4
35.6
123.2
99.0

(41.7)(17.9)
64.5
31.3
155.4
95.8

21.1
14.3
(1.1)
4.3
(32.2)
3.2

72.4

51.7

20.7 pts(20.5)
1.5
53.4
43.8
116.2
97.2

(1.1)
0.7
51.3
43.4
95.1
94.7

(19.4)
0.8
2.1
0.4
21.1
2.5

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

7

Adjusted pre-tax loss of $665 million included $776 million of catastrophe-related losses,
net of reinsurance, severe losses of $65 million and unfavorable prior year loss reserve
development of $38 million. The decrease in net investment income reflects lower income
from equity method investments and fair value option securities.

Net premiums written increased slightly on a reported and constant dollar basis. The
increase in net premiums written was due to the inclusion of additional premiums of $165
million from the acquisition of Validus, growth in our European Financial Lines businessand Accident and Health and Personal Lines businesses in Asia Pacific.



The third quarter loss ratio was 79.7. The accident year loss ratio, as adjusted, increased 0.9
points to 58.2, driven by higher attritional losses in Commercial Lines, partially offset bylower severe losses (1.8 pts) compared to the prior-year quarter.

FOR IMMEDIATE RELEASEThe expense ratio increased due to a higher acquisition ratio from changes in business mix
combined with changes in the 2018 reinsurance program.

LIFE AND RETIREMENT
Three Months Ended September 30,($ in millions)Life and Retirement
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income
Premiums and deposits
Individual Retirement
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income
Premiums and deposits
Net flows
Group Retirement
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income
Premiums and deposits
Net flows
Life Insurance
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income
Premiums and deposits
Institutional Markets
Premiums & Fees
Net Investment Income
Adjusted Revenue
Benefits, losses and expenses
Adjusted pre-tax income
Premiums and deposits

8

2018

2017

Change

$

943
1,960
3,146
2,433
713
6,779

$

2,001
1,907
4,136
2,978
1,158
6,797

(53) %
3
(24)
(18)
(38)
-

$

213 $
956
1,335
942
393
3,616
(545)

212
973
1,343
625
718
2,526
(718)

- %
(2)
(1)
51
(45)
43
24

$

124 $
531
718
476
242
2,116
(986)

121
524
702
453
249
1,860
(15)

2 %
1
2
5
(3)
14
NM

$

520 $
275
809
793
16
978

727
260
1,000
888
112
935

(28) %
6
(19)
(11)
(86)
5

$

86 $
198
284
222
62
69

941
150
1,091
1,012
79
1,476

(91) %
32
(74)
(78)
(22)
(95)

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



In Individual Retirement, adjusted pre-tax income reflected net unfavorable
adjustments as a result of the annual actuarial assumption update of $52 million
compared to net favorable adjustments of $242 million in the prior-year quarter. Fee
income increased primarily from strong levels of assets under management. Net
investment income decreased due to lower yield enhancement income and alternative
investment income. Net flows excluding Retail Mutual Funds were positive andreflected strong sales.

In Group Retirement, adjusted pre-tax income reflected continued investments made in
the business partially offset by higher fee income and advisory fee income primarily
from strong levels of assets under administration. Yield enhancement income increased
primarily due to increased income from bond call and tender and other investment
income. Base spreads, excluding accretion and other investment income, were in linewith the prior-year quarter. Group Retirement net flows reflect outflows due to the lossof two large plan accounts.



In Life Insurance, adjusted pre-tax income reflected net unfavorable adjustments as aresult of the annual actuarial assumption update of $63 million compared to net
favorable adjustments of $29 million in the prior-year quarter. Mortality was favorable
to pricing expectations.



In Institutional Markets, adjusted pre-tax income reflected increased longevity, andlower policy fees, partially offset by strong in-force business and higher net investment
income.

CONFERENCE CALL
AIG will host a conference call tomorrow, Thursday, November 1, 2018 at 8:00 a.m. ET to review
these results. The call is open to the public and can be accessed via a live listen-only webcast in theInvestors 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 Investors 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
9

FOR IMMEDIATE RELEASE

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, or successful integration of acquired businesses, management succession and retention
plans, exposure to risk, trends in operations and financial 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:

















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, or
successfully integrate acquired businesses;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;
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 September 30, 2018 (which will be filed with
the SEC), Part I, Item 2. MD&A and Part II, Item 1A. Risk Factors in AIG’s Quarterly
Report on Form 10-Q for the quarterly period ended June 30, 2018, Part I, Item 2. MD&A in
AIG’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018 andPart 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.
10

FOR IMMEDIATE RELEASE

#

#

#

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 Third 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 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.
11

FOR IMMEDIATE RELEASE

Core and Life and Retirement Adjusted Attributed Equity is an attribution of total AIG
Adjusted Shareholders’ Equity to these 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 and circumstances and will change over time.
Core and Life and Retirement 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 Aftertax Income by Average Adjusted Attributed Equity.
Adjusted After-tax Income Attributable to Core and Life and Retirement is derived bysubtracting 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 is calculated based on an internal attribution methodology that considers
among other things the taxing 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.

12

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;• pension expense related to a one-timelump sum payment to former employees;• 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;• income and loss from divested businesses;• 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);• 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 deferredgain;• net loss reserve discount benefit (charge);and• integration and transaction costs
associated with acquired businesses.

• income or loss from discontinued
operations;
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 16 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, the13FOR IMMEDIATE RELEASE

expense 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
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 exceed 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 related tocatastrophes (CYRIPs) +/(-) RIPs related to prior year catastrophes (PYRIPs) +(Additional) returned premium related to PYD on loss sensitive business ((AP)RP) +Adjustment for ceded premiums under reinsurance contracts related to prior accident
years]g) Accident year combined ratio, as adjusted = AYLR + Expense ratioh) Catastrophe losses (CATs) and reinstatement premiums = [Loss and loss adjustment
expenses incurred – (CATs)] ÷ [NPE +/(-) CYRIPs] – Loss ratioi) Prior year development net of (additional) return premium related to PYD on loss
sensitive business = [Loss and loss adjustment expenses incurred – CATs – PYD] ÷[NPE +/(-) CYRIPs +/(-) PYRIPs + (AP)RP] – Loss ratio – CAT ratio
Premiums and deposits: includes direct and assumed amounts received and earned on traditional
life insurance policies, group benefit policies and life-contingent payout annuities, as well as
deposits received on universal life, investment-type annuity contracts, Federal Home Loan Bank(FHLB) funding agreements and mutual funds.
14

FOR IMMEDIATE RELEASE

Results from discontinued operations are excluded from all of these measures.
###

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.

15

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 (loss), including noncontrolling interests
Noncontrolling interest
Pre-tax income/net income (loss) 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
Pension expense related to a one-time lump sum payment
to former employees
Integration and transaction costs associated with acquired businesses
Restructuring and other costs
Adjusted pre-tax loss/Adjusted after-tax loss

Pre-tax income/net income (loss), including noncontrolling interests
Noncontrolling interest
Pre-tax income/net income (loss) 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(Income) loss from discontinued operations(Income) loss 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
Integration and transaction costs associated with acquired businesses
Restructuring and other costs
Adjusted pre-tax income/Adjusted after-tax income

Three Months Ended September 30,
2018
2017
Pre-tax
Tax Effect After-tax
Pre-tax
Tax Effect$ (1,527) $(307) $ (1,258) $ (2,803) $ (1,091)(1)(1,527)(307)(1,259)(2,803)(1,091)$$$After-tax$ (1,714)(25)(1,739)

-

(54)
(5)

54
5

-

(11)
2

11
(2)

14

3

11

(26)

(9)

(17)

(76)

(16)

(60)

(84)

(29)

(55)

605
1
524
(2)
5
(86)

128
127
(1)
2
(18)

477
1
397
(1)
39
(1)
3
(68)

(7)
1
922
13
48

(2)
1
316
7
20

(5)
606
1
1
6
28

91
35
(416) $

196(116) $

72
29
(301)

49
31
(1,856)

16
10
(770)

33
21
(1,111)Pre-tax
952
952

$

$

Nine Months Ended September 30,
2018
2017
Tax Effect After-tax
Pre-tax
Tax Effect
$
291 $
623 $
591 $
(18)
(7)
291
616
591
(18)

$

After-tax
$
610
(34)
576

-

(53)
(42)

53
42

-

(27)
23

27
(23)

127

27

100

(117)

(41)

(76)

(46)

(10)

(36)

(195)

(68)

(127)

607
10
388
(35)
30
(305)

128
2
97
(8)
7
(64)

479
8
291
(2)
40
(27)
23
(241)

258
(4)
1,106
173
(86)
283

91
(1)
401
41
(30)
101

167
(3)
705
6
(7)
132
(56)
182

91
259
2,078

19
54
448

72
205
1,623

50
259
2,318

17
90
579

33
169
1,705

$

$

$

$

$

* 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.

16

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 September 30,% Inc.
2018
2017(Dec.)
Loss per common share:
Basic
Income (loss) from continuing operations
Income (loss) from discontinued operations$

Net income (loss) attributable to AIG$

DilutedIncome (loss) from continuing operations
Income (loss) from discontinued operations$

Net income (loss) attributable to AIG
Adjusted after-tax income (loss) attributable to AIG per diluted share$$(1.37)(0.04)(1.41)$(1.37)(0.04)(1.41)(0.34)$$$$(1.91)(1.91)

28.3 %
NM
26.2$(1.91)(1.91)(1.22)

28.3
NM
26.2
72.1 %$

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

895.2
895.2

908.7
908.7

Return on equity (c)Adjusted return on equity (d)(8.4) %
(2.4) %

(9.5) %
(8.4) %

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

September 30, 2018$
58,586(536)
59,122

Deferred tax assets (e)Total adjusted AIG shareholders' equity$

As of period end:
Book value per common share (f)Book value per common share, excluding AOCI (g)Adjusted book value per common share (h)Total common shares outstanding

September 30,
2018
$
66.23
$
66.83
$
55.58
884.6

9,953
49,169$$$$Nine Months Ended September 30,% Inc.
2018
2017(Dec.)

June 30,2018 % Inc. (Dec.)
68.65(3.5) %
68.40
(2.3)
57.34
(3.1)
891.2

$
$

$

0.71
(0.04)
0.67
1.77

$

$

$
$

902.1
916.8

9,853
51,103September 30, 2017$72,468
5,939
66,529$14,897
51,632September 30,
2017 % Inc. (Dec.)$
80.62(17.8) %
$
74.01
(9.7)
$
57.44
(3.2)
898.9

0.60
0.01
0.61

20.0 %
NM
11.5

0.59
0.01
0.60
1.77

20.3
NM
11.7
-%

938.1
961.3

1.3 %
4.3 %

June 30, 2018
61,186
230
60,956$$0.72(0.04)
0.68

1.0 %
4.1 %

$

December 31, 2017
65,171
5,465
59,706
10,492
49,214$

December 31,
2017 % Inc. (Dec.)$
72.49(8.6) %
$
66.41
0.6
$
54.74
1.5
899.0

Financial highlights - notes(a) For the three-month periods ended September 30, 2018 and 2017, because we reported net losses and adjusted after-tax losses, all common stock equivalents are anti-dilutive andare therefore excluded from the calculation of diluted shares and diluted per share amounts. The shares excluded from these calculations were 13,538,168 and 22,459,868 shares,
respectively.
(b) Diluted shares in the diluted EPS calculation represent basic shares for the three-month periods ended September 30, 2018 and 2017 due to the net losses in those periods.
(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 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.
(f) Represents total AIG shareholders' equity divided by Total common shares outstanding.
(g) Represents total AIG shareholders' equity, excluding AOCI, divided by Total common shares outstanding.
(h) Represents Adjusted Shareholders' Equity, divided by Total common shares outstanding.

17

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation($ in millions, except per share amounts)
Reconciliations of Life and Retirement Adjusted Return on Equity
Three Months Ended
September 30,
2018
2017
$

713
30
683
134
549

$

1,158
5
1,153
374
779

Ending adjusted attributed equity
Average adjusted attributed equity
Adjusted return on attributed equity$$

19,254
19,61311.2 %$$

20,98320,93414.9 %

Annual actuarial assumption update, net of tax
Adjusted return on attributed equity (excluding Annual actuarial assumption update)$(79)
12.8 %

Adjusted pre-tax income
Interest expense on attributed financial debt
Adjusted pre-tax income including attributed interest expenses
Income tax expense
Adjusted after-tax income

Reconciliations of Core Adjusted Return on Equity
Three Months Ended
September 30,
2018
2017
Adjusted pre-tax loss
Interest expense (benefit) on attributed financial debt

$

(500)
(500)
(134)
(366)

$

(2,142)(42)(2,100)(849)(1,251)$$40,35841,097(3.6) %$$

41,751
43,161(11.6) %Adjusted pre-tax loss including attributed interest expenses
Income tax benefit
Adjusted after-tax loss
Ending adjusted attributed equity
Average adjusted attributed equity
Adjusted return on attributed equity

Net Premiums Written - Change in Constant Dollar
Three Months Ended
September 30, 2018

General Insurance - International
Foreign exchange effect on worldwide premiums:
Change in net premiums written
Increase (decrease) in original currency
Foreign exchange effect
Increase (decrease) as reported in U.S. dollars

1.9 %
(0.9)
1.0 %

Reconciliation of Insurance Company Net Investment Income

Net investment income per Consolidated Statement of Operations
Changes in fair value of securities used to hedge guaranteed living benefits
Net realized capital gains related to non-qualifying hedges
Total Insurance Company Net investment income

18

$

$

Three Months Ended
September 30,
2018
2017
3,396
$
3,416
14
(26)
28
3,438
$
3,390

$

$

Nine Months Ended
September 30,
2018
2017
9,722
$
10,715
127
(117)
66
9,915
$
10,598

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per share amounts)
Reconciliations of Premiums and Deposits
Three Months Ended
September 30,
2018
2017
Individual Retirement:
Premiums
Deposits
Other
Total premiums and deposits
Group Retirement:
Premiums
Deposits
Other
Total premiums and depositsLife Insurance:
Premiums
Deposits
Other
Total premiums and deposits
Institutional Markets:
Premiums
Deposits
Other
Total premiums and deposits
Total Life and Retirement:
Premiums
Deposits
Other
Total premiums and deposits

19

$

$
$

$
$

$
$

$
$

$

9
3,609
(2)
3,616

$

9
2,107
2,116

$

379
410
189
978

$

46
17
6
69

$

443
6,143
193
6,779

$

$

$

$

$

$

22
2,504
2,526
8
1,852
1,860
384
371
180
935
897
573
6
1,476
1,311
5,300
186
6,797