FOR IMMEDIATE RELEASE
本稿は2018年8月2日、AIG米国本社が発表した英文プレスリリース（原文）の参考訳です。
本稿と原文との間で解釈に相違が生じた際には、原文が優先します。
原文の発信日付で、AIGジャパンのホームページに掲載しています。

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

AIG、2018年第2四半期の決算を公表
2018年8月2日（ニューヨーク発）：アメリカン・インターナショナル・グル
ープ・インク（ニューヨーク証券取引所銘柄：AIG）は本日、2018年第2四半期の純利益が9億3,700万ドル、希薄化後普通株式1株当たりでは1.02ドルになったことを公表しました。これに対して、前年同期は純利益が11億ドル、希薄化後普通株式1株当たりでは1.19ドルでした。2018年第2四半期の調整後税引
後利益は9億6,100万ドル、希薄化後普通株式1株当たりでは1.05ドルでした。
これに対して、前年同期は調整後税引後利益が14億ドル、希薄化後普通株式1株当たりでは1.53ドルでした。
2018年第2四半期の業績概要*
6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

純利益

$

937

$

1,130

希薄化後1株当たり純利益

$

1.02

$

1.19

調整後税引後利益

$

961

$

1,449

調整後希薄化後1株当たり利益

$

1.05

$

1.53

株主資本利益率

6.0 %

6.1 %

調整後株主資本利益率

7.6 %

10.5 %

調整後帰属株主資本利益率 – コア

8.2 %10.5 %

普通株式1株当たりブック・バリュー

$

68.65

$

81.62

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

$

68.40

$

76.12

調整後普通株式１株当たりブック・バリュー

57.34

60.31

*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。

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。「当社は引き続きAIG全体で収益性を伴う持続可能な成長の追求を特に重視しており、戦略を実行する上で幅広い事業構成により柔軟性がもたらされています。2018
年第2四半期には、卓越した保険引受の企業風土を確立すべく損害保険事業部
門全体で引き続き取り組み、優れた人材の補強を行いました。取組みは定着しつつあり、2018年末に保険引受利益を達成することに引き続き注力しています。
生命保険および退職給付事業部門の堅調な業績は、幅広い商品に関する専門知
識と販売力を活用した、現在進行中の戦略を反映したものです。」「7月のヴァリダス・ホールディングス・リミテッド買収完了を受け、保険引受の専門知識を一層強化し、提供商品を拡大しました。また、DSAリインシュ
アランス・カンパニー・リミテッド（DSA Re）の部分売却によりレガシー債
務を効率的に管理するための措置を講じ、ラン・オフ事業管理のためのスタン
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ドアローン・プラットフォームに向けた道筋をつけました。今後も引き続きAIGを成長させ、長期的な株主価値を創出する機会を探し求めていきます。」
2018年第2四半期の業績概要
損害保険事業部門の業績 – 損害保険事業部門は中核となる保険引受パフォーマンスを向上させる戦略を引き続き実行しました。2018年第2四半期の調整後税引前利益5億6,800万ドルは、オルタナティブ投資の利益減少を主因とする正味投資利益の減少を反映しています。保険引受業績には、予想を下回った異常災
害損失および、小幅ながら前年以前事故年度の当年度発生戻入金が含まれています。損害率には長期平均の2倍超の合計2億9,300万ドル（4.5ポイント）に達する大規模災害損失の頻発が含まれ、この結果、2018年第2四半期の損害率は65.7ポイントとなり、また事故発生年度ベースの調整済み損害率は65.4ポイ
ントとなりました。大規模災害損失の増加を除くと、2018年第2四半期の事故
発生年度ベースの調整済み損害率は2017年通期の実績とほぼ一致しています。
2018年第2四半期の事業費率は35.6ポイントとなりました。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変更による、
北米におけ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。
生命保険および退職給付事業部門の業績 – 生命保険および退職給付事業部門は堅調な業績を挙げ、2018年第2四半期の調整後税引前利益は9億6,200万ドルとなりました。好調な株式市場のパフォーマンスを背景に、個人向け退職給付および団体向け退職給付における高水準の運用資産が手数料収入の増加をもたらしました。機関投資家市場の運用資産の増加は過去12ヶ月に行った、機動的な取引を反映しています。正味投資利益合計は運用資産が増えたことから増加しましたが、オルタナティブ投資および、その他の利回り向上利益の減少と部分的に相殺されました。個人向け退職給付の正味フローの合計は、個人投資家向けミューチュアルファンドを除いて改善しました。調整後税引前利益は生命保険および個人向け退職給付の正味保険数理調整額5,100万ドルの恩恵を受けました。
レガシー – 2018年第2四半期の調整後税引前利益1億3,400万ドルとなりました。前年同期の調整後税引前利益は4億3,100万ドルであり、正味投資利益減少、
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。AIGは2018年8月1日、DSAリインシュアランス・カ
ンパニー・リミテッド（DSA Re）の持ち株19.9%の売却を発表しました。これは、DSA Reを世界的に保険債務のソリューションを提供するプラットフォームとして位置付けるものです。
正味投資利益 – 2018年第2四半期のレガシー保険ポートフォリオを含むAIGの保険会社からの正味投資利益は、前年同期から12%減少して31億ドルとなりました。この減少は、プライベート・エクイティとヘッジファンドのパフォー
マンスが前年同期ほど好調ではなかったことによるオルタナティブ投資リター
ンの低下、およびクレジットスプレッドの拡大と金利上昇の結果として公正価
値オプションが選択された証券の利益減少が主因でした。2018上半期のレガシ
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65億ドルとなり、前回提示した、通期で130億ドルのガイダンスに向けて順調に進んでいます。
再編費用 – 2018年第2四半期に、AIGは主に効率化イニシアティブに関連して、税引前営業外再編費用2億ドルを計上しました。
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流動性および資本 – 2018年6月30日時点のAIGの親会社流動資産は約93億ドルでした。2018年第2四半期に親会社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ました。
AIGは2018年7月18日、約55億ドルの現金でヴァリダス・ホールディングス・
リミテッドの買収を完了しました。
2018年第2四半期にAIGは普通株式650万株を3億4,800万ドルで、ワラントを200万ドルで買い戻し、2018年7月1日から8月2日にかけて、普通株式1億4,900万ドルおよびワラント100万ドルを追加で買い戻しました。2018年8月2日現在、残存する自社株買い承認額は約15億ドルです。
普通株式１株当たりブック・バリュー – 2018年6月30日現在、普通株式１株当たりブック・バリューは68.65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2.2%増加
して57.34ドルとなりました。
損害保険事業部門
6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

$

8,653

$

8,311

4

%

正味収入保険料

$

6,977

$

6,672

5

%

保険引受利益（損失）

$

(89)

$

149

NM

調整後税引前利益

$

568

$

1,046

(46)

65.7

64.0

1.7 pts

異常災害損失および復活保険料

(2.3)

(2.8)

0.5

前年以前事故発生年度の当年度発生保険金

0.8

(1.1)

1.9

再保険契約およびその他の出再保険料の調整

1.2

(0.4)

1.6

保険事故年度の調整済み損害率

65.4

59.7

5.7

事業費率

35.6

33.7

1.9

コンバインド・レシオ

101.3

97.7

3.6

保険事故年度の調整済みコンバインド・レシオ

101.0

93.4

7.6

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
6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$

保険引受利益（損失）

3,236

3,125

4

2,321

2,312

-

915

813

13

(58)

(119)

(127)

$

$

%

コマーシャル・ライン

(91)

(159)

43

個人向け損害保険

(36)

101

NM

721

(44)

73.1

74.9

(1.8) pts

異常災害損失および復活保険料

(3.7)

(6.1)

2.4

前年以前事故発生年度の当年度発生保険金

1.6

(0.7)

2.3

再保険契約およびその他の出再保険料の調整

3.0

(1.1)

4.1

保険事故年度の調整済み損害率

74.0

67.0

7.0

事業費率

31.3

27.1

4.2

コンバインド・レシオ

104.4

102.0

2.4

保険事故年度の調整済みコンバインド・レシオ

105.3

94.1

11.2

78.1

83.9

(5.8) pts

異常災害損失および復活保険料

(4.6)

(8.3)

3.7

前年以前事故発生年度の当年度発生保険金

4.2

(1.5)

5.7

再保険契約およびその他の出再保険料の調整

4.5

(1.6)

6.1

保険事故年度の調整済み損害率

82.2

72.5

9.7

事業費率

26.3

23.6

2.7

コンバインド・レシオ

104.4

107.5

(3.1)

保険事故年度の調整済みコンバインド・レシオ

108.5

96.1

12.4

$

調整後税引前利益407$

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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FOR IMMEDIATE RELEASE
6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

60.6

50.8

9.8

異常災害損失および復活保険料

(1.4)

(0.2)

(1.2)

前年以前事故発生年度の当年度発生保険金

(5.0)

1.4

(6.4)

保険事故年度の調整済み損害率

54.2

52.0

2.2

事業費率

43.7

36.4

7.3

コンバインド・レシオ

104.3

87.2

17.1

保険事故年度の調整済みコンバインド・レシオ

97.9

88.4

9.5

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2四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2四半期追加財務情報をご参照ください。



調整後税引前利益4億700万ドルは、大規模災害損失1億6,000万ドルおよび異常災害損失1億700万ドルを含んでいます。前年以前事故年度の当年度発生戻入金5,400万ドルには、ナショナル・インデムニティー・カンパニーのアドバース・デベロップメント再保険補償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戻入金9,500万ドルが含まれています。これは2017年の異常災害損失の当年度発生保険
金発生額に主として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4,100万ドルと部分的に相殺されました。正味投資利
益はオルタナティブ投資利益の減少により2億4,500万ドルに減少しました。



正味収入保険料は4%増加しました。2018年の再保険プログラムの変更による年出再保険料減少および個人向け損害保険の旅行事業の増加が主因でした。正味経既過保険料には前年以前事故年度に関連する複数年保険契約のための当年度発生戻入金調整額1億1,500万ドルが含まれています。



北米損害率の低下は、主に異常災害損失の減少と前年以前事故年度の当年度発生戻入金によるものです。保険事故年度の調整済み損害率の7.0ポイン
トの上昇は、大規模災害損失（3.4ポイント）の影響および再保険プログラ
ムの変更の影響を反映したものです。また、2017年第2四半期には2017年
下半期からの損失見積もりの増加を含んでいません。



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
6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

$

3,741

$

3,547

5 %

コマーシャル・ライン

1,590

1,514

5

個人向け損害保険

2,151

2,033

6

207

(82)

保険引受利益（損失）

$

38

$

コマーシャル・ライン

(76)

61

NM

個人向け損害保険

114

146

(22)

325

(50)

59.9

55.3

4.6 pts

異常災害損失および復活保険料

(1.2)

(0.1)

(1.1)

前年以前事故発生年度の当年度発生保険金

0.2

(1.5)

1.7

事故発生年度の調整済み損害率

58.9

53.7

5.2

事業費率

39.1

39.0

0.1

コンバインド・レシオ

99.0

94.3

4.7

保険事故年度の調整済みコンバインド・レシオ

98.0

92.7

5.3

68.2

61.1

7.1 pts

異常災害損失および復活保険料

(1.6)

(0.3)

(1.3)

前年以前事故発生年度の当年度発生保険金

0.5

(2.9)

3.4

事故発生年度の調整済み損害率

67.1

57.9

9.2

事業費率

36.3

35.2

1.1

コンバインド・レシオ

104.5

96.3

8.2

保険事故年度の調整済みコンバインド・レシオ

103.4

93.1

10.3

調整後税引前利益

$

161

$

引受に関する比率：
北米外
損害率
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：

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6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

52.9

50.6

2.3 pts

(0.8)

-

(0.8)

-

(0.3)

0.3

事故発生年度の調整済み損害率

52.1

50.3

1.8

事業費率

41.4

42.1

(0.7)

コンバインド・レシオ

94.3

92.7

1.6

保険事故年度の調整済みコンバインド・レシオ

93.5

92.4

1.1

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

別段の記載がない限り、比較はすべて、2017年第2四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2四半期追加財務情報をご参照ください。



調整後税引前利益1億6,100万ドルには大規模災害損失1億3,300万ドルと異常災害損失4,300万ドルが含まれていますが、これは前年以前事故年度の当年度発生戻入金700万ドルで部分的に相殺されました。前年同期は前年以前事故年度の当年度発生保険金発生額が5,400万ドルでした。



正味収入保険料は報告ベースで5%増加し、実質ベースでは小幅増となりました。正味収入保険料の増加はアジア太平洋地域の医療・傷害保険事業の成長と欧州のファイナンシャル・ライン事業の増加によるものでしたが、これは事業売却の影響で部分的に相殺されました。



2018年第2四半期の損害率は59.9ポイントでした。事故発生年度ベースの損害率は5.2ポイント上昇して58.9ポイントとなりました。大規模災害損
失が前年同期に比べて増加（1.8ポイント）したことと、コマーシャル・ラ
インの小中規模な損害金の増加が主因でした。



事業費率は前年同期と比べてほぼ横ばいでした。

生命保険および退職給付事業部門
6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

$

1,221

$

1,196

2 %

正味投資利益

1,995

1,944

3

調整後収益

3,465

3,365

3

給付、損失および費用

2,503

2,372

6

962

993

(3)

7,399

5,791

28

調整後税引前利益
収入保険料および預かり資産

7

FOR IMMEDIATE RELEASE
6月30日までの3ヶ月間（単位：百万米ドル）

2018

2017

増減

個人向け退職給付
収入保険料および手数料

$

218

$

223

(2) %

正味投資利益

975

1,003

(3)

調整後収益

1,366

1,383

(1)

給付、損失および費用

904

825

10

調整後税引前利益

462

558

(17)

収入保険料および預かり資産

3,422

2,892

18

正味フロー

(1,049)

(691)

(52)

105

21 %

団体向け退職給付
収入保険料および手数料

$

127

$

正味投資利益

542

535

1

調整後収益

730

696

5

給付、損失および費用

480

430

12

調整後税引前利益

250

266

(6)

収入保険料および預かり資産

2,345

1,802

30

正味フロー

(459)

(181)

(154)

生命保険
収入保険料および手数料

$

795

$

757

5 %

正味投資利益

282

261

8

調整後収益

1,092

1,030

6

給付、損失および費用

917

924

(1)

調整後税引前利益

175

106

65

収入保険料および預かり資産

980

947

3

111

(27) %

機関投資家市場
収入保険料および手数料

$

81

$

正味投資利益

196

145

35

調整後収益

277

256

8

給付、損失および費用

202

193

5

調整後税引前利益

75

63

19

収入保険料および預かり資産

652

150

335

別段の記載がない限り、比較はすべて、2017年第2四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2四半期追加財務情報をご参照ください。

8FOR IMMEDIATE RELEASE

個人向け退職給付では、調整後税引前利益は変額年金保険の不利な保険数
理調整額4,700万ドルを反映しています。前年同期には即時年金保険で有利な保険数理調整がありました。保険契約手数料は運用資産の増加により増加、正味投資利益はオルタナティブおよびその他の利回り向上利益の減
少により減少しました。基礎的ポートフォリオ利益はインデックス型年金保険の運用資産の伸び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予想通り低下しました。関連する基礎的スプ
レッドは変額年金保険およびインデックス型年金保険で小幅上昇しましたが、定額型年金保険では低下しました。正味フロー全体は定額型年金保険
およびインデックス型年金保険の販売が前年同期に比べて改善したことを反映していますが、個人投資家向けミューチュアルファンドからの資金流出の増加がこれを上回りました。



団体向け退職給付では、保険契約手数料は資産の伸びを主因に増加しました。基礎的ポートフォリオ利益は利益増加およびその他の投資利益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解約増加による資金流出を反映していますが、これは新規の団体契約獲得を主因とする預かり資産増加により部分的に相殺されました。



生命保険では、調整後税引前利益は有利な保険数理調整額9,800万ドルおよび運用資産の増加による正味投資利益の上昇を反映しました。死亡率は料率予想範囲内に収まりました。



機関投資家市場では、調整後税引前利益が保有契約の継続的な増加と正味投資利益の増加により上昇しました。

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。

9

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 SECOND QUARTER 2018 RESULTSNEW YORK, August 2, 2018 - American International Group, Inc. (NYSE: AIG) today
reported net income of $937 million, or $1.02 per diluted share, for the second quarter of 2018,
compared to net income of $1.1 billion, or $1.19 per diluted share, in the prior-year quarter.
Adjusted after-tax income was $961 million, or $1.05 per diluted share, for the second quarterof 2018, compared to adjusted after-tax income of $1.4 billion, or $1.53 per diluted share, inthe prior-year quarter.
SECOND QUARTER FINANCIAL SUMMARY*
Three Months Ended
June 30,($ in millions, except per share amounts)
Net income
Net income per diluted share
Adjusted after-tax income
Adjusted after-tax income per diluted share

$
$
$
$

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

2018
937
1.02
961
1.05

$
$
$
$

2017
1,130
1.19
1,449
1.53

6.0 %
7.6 %
8.2 %
$

68.65
68.40
57.34

6.1 %
10.5 %
10.5 %
$

81.62
76.12
60.31

*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.

“We remain diligently focused on pursuing long-term, sustainable and profitable growth across
AIG, and our diversified businesses provide flexibility and strength to execute on our strategy,”
said Brian Duperreault, President and Chief Executive Officer. “In the second quarter, we
continued to take actions across General Insurance to establish a culture of underwriting
excellence and added stellar talent. Our efforts are taking hold and we remain committed toachieving an underwriting profit as we exit 2018. Solid results in Life & Retirement reflect anongoing strategy to leverage our broad product expertise and distribution strengths.”
Mr. Duperreault continued, “With the closing of the Validus acquisition in July, we havefurther enhanced our underwriting expertise and expanded our offerings. We also took actions
to efficiently manage our Legacy liabilities with the partial sale of DSA Re, providing a path
1

FOR IMMEDIATE RELEASE

towards a standalone platform for managing run-off business. Moving forward, we willcontinue to look for opportunities to grow AIG and create long-term shareholder value.”
SECOND QUARTER 2018 HIGHLIGHTS
General Insurance Results – General Insurance has continued to execute its strategy to
improve core underwriting performance. Second quarter adjusted pre-tax income of $568
million reflected lower net investment income, primarily driven by lower income fromalternative investments. Underwriting results included catastrophe losses that were lower than
expected and slightly favorable prior year loss reserve development. The loss ratio included ahigh frequency of severe losses that totaled $293 million (4.5 pts) which is more than double
the long-term average, resulting in a second quarter loss ratio of 65.7, and an accident year loss
ratio, as adjusted, of 65.4. Excluding the increase in severe losses, the second quarter accident
year loss ratio, as adjusted, was in line with full year 2017 results. The second quarter expense
ratio of 35.6 primarily reflected an increase in the North America acquisition ratio due tochanges in Personal Insurance business mix towards lower loss ratio and higher commission
businesses and an increase in general operating expenses related to strategic initiatives.
Life and Retirement Results – Life and Retirement produced solid results, reporting second
quarter adjusted pre-tax income of $962 million. High levels of assets under administration in
Individual Retirement and Group Retirement, due to strong equity market performance, drove
growth in fee income. Growth of assets under management for Institutional Markets reflected
the execution of opportunistic transactions over the last twelve months. Total net investment
income increased due to higher invested assets, partially offset by lower alternative and otheryield enhancement income. Total Individual Retirement net flows improved, excluding Retail
Mutual Funds. Adjusted pre-tax income benefited from net actuarial adjustments of $51
million in Life and Individual Retirement.
Legacy – Second quarter adjusted pre-tax income of $134 million, compared to $431 million in
the prior-year quarter reflected lower net investment income and lower income from fair value
option assets, as well as the sale of the Life Settlement portfolio in 2017. On August 1, 2018
AIG announced the sale of 19.9% of DSA Re, which positions DSA Re to be a platform toprovide solutions for insurance liabilities globally.
Net Investment Income –Second quarter net investment income from our insurance companies,
including the Legacy insurance portfolios, decreased 12% from the prior-year quarter to $3.1
billion. The decline was primarily driven by lower investment returns on alternative
investments, primarily driven by less robust private equity and hedge fund performancecompared to last year, and a decline in income from securities for which the fair value option
was elected as a result of credit spread widening and rising interest rates. Net investment
income from our insurance companies including the Legacy insurance portfolios totaled $6.5
billion for the first six months of 2018, and is on track with our $13 billion full year guidance
previously provided.
Restructuring Charge – In the second quarter, AIG recorded pre-tax non-operating
restructuring costs of $200 million, primarily related to efficiency initiatives.
2FOR IMMEDIATE RELEASE

Liquidity and Capital – As of June 30, 2018, AIG Parent liquidity stood at approximately $9.3
billion. In the second 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.
On July 18, 2018 AIG completed its acquisition of Validus Holdings, Ltd. for approximately$5.5 billion in cash.
In the second quarter, AIG repurchased 6.5 million common shares for $348 million andwarrants for $2 million. From July 1 through August 2, 2018 AIG repurchased $149 million of
additional common shares and $1 million of additional warrants. As of August 2, 2018,
approximately $1.5 billion remained under the share repurchase authorization.
Book Value per Common Share – As of June 30, 2018, book value per common share was$68.65 compared to $72.49 at December 31, 2017. Book value per common share excluding
accumulated other comprehensive income and deferred tax assets (Adjusted book value percommon share) increased 2.2% to $57.34 in the second quarter.
GENERAL INSURANCE

Three Months Ended June 30,($ in millions)
Total General Insurance
Gross premiums written
Net premiums written
Underwriting income (loss)
Adjusted pre-tax income
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

3

2018
$
$
$
$

2017

Change8,653 $
6,977 $
(89) $
568 $

8,311
6,672
149
1,046

4 %
5
NM
(46)

65.7

64.0

1.7 pts

(2.3)
0.8

(2.8)
(1.1)

0.5
1.9

1.2
65.4
35.6
101.3
101.0

(0.4)
59.7
33.7
97.7
93.4

1.6
5.7
1.9
3.6
7.6

FOR IMMEDIATE RELEASE

General Insurance - North America

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

2018

2017

Change

$

3,236
2,321
915

$

3,125
2,312
813

Underwriting income (loss)
Commercial Lines
Personal Insurance$(127) $
(91)
(36)

(58)
(159)
101

(119)
43
NM

Adjusted pre-tax income

$

407

721

(44)

73.1

74.9

(1.8) pts

(3.7)
1.6

(6.1)
(0.7)

2.4
2.3

3.0
74.0
31.3
104.4
105.3

(1.1)
67.0
27.1
102.0
94.1

4.1
7.0
4.2
2.4
11.2

78.1

83.9

(5.8) pts

(4.6)
4.2

(8.3)
(1.5)

3.7
5.7

4.5
82.2
26.3
104.4
108.5

(1.6)
72.5
23.6
107.5
96.1

6.1
9.7
2.7
(3.1)
12.4

60.6

50.8

9.8 pts

(1.4)
(5.0)
54.2
43.7
104.3
97.9

(0.2)
1.4
52.0
36.4
87.2
88.4

(1.2)
(6.4)
2.2
7.3
17.1
9.5

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

4

$

4 %
13

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



Adjusted pre-tax income of $407 million included $160 million of severe losses and$107 million of catastrophe-related losses. Net favorable prior year loss reserve
development of $54 million included $95 million of favorable prior year loss
development from Commercial Lines which included the amortization of the deferredgain from the adverse development reinsurance coverage with National Indemnity
Company, partially offset by $41 million of unfavorable prior year loss development in
Personal Insurance primarily related to development from 2017 catastrophe losses. Net
investment income decreased by $245 million primarily driven by lower alternative
investment income.

Net premiums written increased by 4%, largely due to lower ceded premiums driven bychanges in the 2018 reinsurance programs and growth in the Travel business in
Personal Insurance. Net premiums earned included a favorable adjustment of $115
million for multi-year policies related to earlier accident years.

The decrease in the North America loss ratio was driven by lower catastrophe losses
and favorable prior year loss reserve development. The accident year loss ratio, as
adjusted, increased 7.0 points, reflecting the impact of higher severe losses (3.4 pts)
and the impact of changes in our reinsurance program. Also, the second quarter of2017 did not reflect the increased loss estimates which occurred in the second half of
2017.



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

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

2018
$

2017

3,741
1,590
2,151

Change

$

3,547
1,514
2,033

5 %
5
6

Underwriting income (loss)
Commercial Lines
Personal Insurance

$

38 $
(76)
114

207
61
146

(82)
NM
(22)

Adjusted pre-tax income

$

161

325

(50)

5

$

FOR IMMEDIATE RELEASE

Three Months Ended June 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

Change59.9

55.3

4.6 pts

(1.2)
0.2
58.9
39.1
99.0
98.0

(0.1)
(1.5)
53.7
39.0
94.3
92.7

(1.1)
1.7
5.2
0.1
4.7
5.3

68.2

61.1

7.1 pts

(1.6)
0.5
67.1
36.3
104.5
103.4

(0.3)
(2.9)
57.9
35.2
96.3
93.1

(1.3)
3.4
9.2
1.1
8.2
10.3

52.9

50.6

2.3 pts

(0.8)
52.1
41.4
94.3
93.5

(0.3)
50.3
42.1
92.7
92.4

(0.8)
0.3
1.8
(0.7)
1.6
1.1

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

6



Adjusted pre-tax income of $161 million included severe losses of $133 million andcatastrophe-related losses of $43 million, partially offset by favorable prior year loss
reserve development of $7 million compared to unfavorable loss reserve development of$54 million in the prior-year quarter.

Net premiums written increased 5% on a reported basis and slightly increased on a constantdollar basis. The increase in net premiums written was primarily driven by growth in our
Accident & Health business in Asia Pacific and growth in our European Financial Lines
business, partially offset by the impact of divested businesses.

The second quarter loss ratio was 59.9. The accident year loss ratio, as adjusted, increased
5.2 points to 58.9, driven by higher severe losses (1.8 pts) compared to the prior-year
quarter and higher attritional losses in Commercial Lines.

FOR IMMEDIATE RELEASEThe expense ratio was relatively flat compared to the prior-year quarter.

LIFE AND RETIREMENT
Three Months Ended June 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

2018

2017

Change

$

1,221
1,995
3,465
2,503
962
7,399

$

1,196
1,944
3,365
2,372
993
5,791

2 %
3
3
6
(3)
28

$

218 $
975
1,366
904
462
3,422
(1,049)

223
1,003
1,383
825
558
2,892
(691)

(2) %
(3)
(1)
10
(17)
18
(52)

$

127 $
542
730
480
250
2,345
(459)

105
535
696
430
266
1,802
(181)

21 %
1
5
12
(6)
30
(154)

$

795 $
282
1,092
917
175
980

757
261
1,030
924
106
947

5 %
8
6
(1)
65
3

$

81 $
196
277
202
75
652

111
145
256
193
63
150

(27) %
35
8
5
19
335

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

7

FOR IMMEDIATE RELEASEIn Individual Retirement, adjusted pre-tax income reflected unfavorable actuarial
adjustments to Variable Annuities of $47 million compared to favorable adjustments toimmediate annuities in the prior-year quarter. Fee income increased primarily fromgrowth in assets under management. Net investment income decreased due to lower
alternative and other yield enhancement income. Base portfolio income increased
primarily due to growth in Index Annuities invested assets. Base yields, excluding
accretion and other investment income, declined consistent with expectations, while
related base spreads increased slightly for Variable and Index Annuities and declined
for Fixed Annuities. Overall net flows reflected improvement from the prior-year
quarter in Fixed Annuities and Index Annuities sales, which was more than offset byincreases in Retail Mutual Funds outflows.



In Group Retirement, fee income increased primarily from growth in assets underadministration. Base portfolio income increased primarily due to accretion and otherinvestment income. Base spreads, excluding accretion and other investment income,were in line with the prior-year quarter. Group Retirement net flows reflect outflows
due to higher surrenders, partially offset by increased deposits primarily from newgroup plan acquisitions.



In Life Insurance, adjusted pre-tax income reflected favorable actuarial adjustments of$98 million and higher net investment income driven by growth in invested
assets. Mortality was within pricing expectations.



In Institutional Markets, adjusted pre-tax income was driven by continued growth in
the in-force business and higher net investment income.

CONFERENCE CALL
AIG will host a conference call tomorrow, Friday, August 3, 2018 at 8:00 a.m. ET to review theseresults. The call is open to the public and can be accessed via a live listen-only webcast in 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
8

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) and Part II, Item 1A. Risk
Factors in AIG’s Quarterly Report on Form 10-Q for the quarterly period ended June 30,2018 (which will be filed with the SEC), Part I, Item 2. MD&A in AIG’s Quarterly Reporton Form 10-Q for the quarterly period ended March 31, 2018 and Part II, Item 7. MD&A
and Part I, Item 1A. Risk Factors in AIG’s Annual Report on Form 10-K for the year
ended December 31, 2017.

AIG is not under any obligation (and expressly disclaims any obligation) to update or alter any
projections, goals, assumptions or other statements, whether written or oral, that may be made fromtime to time, whether as a result of new information, future events or otherwise.
9

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 Second Quarter2018 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.
10

FOR IMMEDIATE RELEASE

Core Adjusted Attributed Equity is an attribution of total AIG Adjusted Shareholders’ Equity tothese segments based on AIG’s internal capital model, which incorporates the segments’ respective
risk profiles. Adjusted attributed equity represents AIG’s best estimates based on current facts andcircumstances and will change over time.
Core Return on Equity – Adjusted After-tax Income (Adjusted Return on Attributed Equity)
is used to show the rate of return on Adjusted Attributed Equity. Adjusted Return on Attributed
Equity is derived by dividing actual or annualized Adjusted After-tax Income by Average Adjusted
Attributed Equity.
Adjusted After-tax Income Attributable to Core is derived by subtracting attributed interest
expense and income tax expense from adjusted pre-tax income. Attributed debt and the related
interest expense is calculated based on AIG’s internal capital model. Tax expense or benefit iscalculated based on an internal attribution methodology that considers among other things thetaxing jurisdiction in which the segments conduct business, as well as the deductibility of expenses
in those jurisdictions.
Adjusted Revenues exclude Net realized capital gains (losses), income from non-operating
litigation settlements (included in Other income for GAAP purposes) and changes in fair value of
securities used to hedge guaranteed living benefits (included in Net investment income for GAAP
purposes). Adjusted revenues is a GAAP measure for AIG’s operating segments.
AIG uses the following operating performance measures because AIG believes they enhance theunderstanding of the underlying profitability of continuing operations and trends of AIG’s businesssegments. AIG believes they also allow for more meaningful comparisons with AIG’s insurancecompetitors. When AIG uses these measures, reconciliations to the most comparable GAAP
measure are provided on a consolidated basis.

11

FOR IMMEDIATE RELEASE

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

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

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

See page 15 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
12FOR IMMEDIATE RELEASE

and loss adjustment expenses (which for General Insurance excludes net loss reserve discount), andthe amount of other underwriting expenses that would be incurred. A combined ratio of less than
100 indicates underwriting income and a combined ratio of over 100 indicates an underwriting loss.
AIG’s ratios are calculated using the relevant segment information calculated under GAAP, andthus may not be comparable to similar ratios calculated for regulatory reporting purposes. The
underwriting environment varies across countries and products, as does the degree of litigation
activity, all of which affect such ratios. In addition, investment returns, local taxes, cost of capital,
regulation, product type and competition can have an effect on pricing and consequently on
profitability as reflected in underwriting income and associated ratios.
Accident year loss and combined ratios, as adjusted: both the accident year loss andcombined ratios, as adjusted, exclude catastrophe losses and related reinstatement premiums,
prior year development, net of premium adjustments, and the impact of reserve discounting.
Natural and man-made catastrophe losses are generally weather or seismic events having a net
impact on AIG in excess of $10 million each and also include certain man-made events, suchas terrorism and civil disorders that meet the $10 million threshold. AIG believes the as
adjusted ratios are meaningful measures of AIG’s underwriting results on an ongoing basis as
they exclude catastrophes and the impact of reserve discounting which are outside ofmanagement’s control. AIG also excludes prior year development to provide transparency
related to current accident year results.
Underwriting ratios are computed as follows:a) Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned(NPE)b) Acquisition ratio = Total acquisition expenses ÷ NPEc) General operating expense ratio = General operating expenses ÷ NPEd) Expense ratio = Acquisition ratio + General operating expense ratioe) Combined ratio = Loss ratio + Expense ratiof) Accident year loss ratio, as adjusted (AYLR) = [Loss and loss adjustment expenses
incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement premiums (RIPs) related tocatastrophes +/(-) RIPs related to prior year catastrophes + (Additional) returned
premium related to PYD on loss sensitive business + Adjustment for ceded premiums
under reinsurance contracts related to prior accident years]g) Accident year combined ratio = AYLR + Expense ratioh) Catastrophe losses (CATs) and reinstatement premiums = [Loss and loss adjustment
expenses incurred – (CATs)] ÷ [NPE +/(-) RIPs related to catastrophes] – Loss ratioi) Prior year development net of (additional) return premium related to PYD on loss
sensitive business = [Loss and loss adjustment expenses incurred – Prior year loss
reserve development unfavorable (favorable) (PYD), net of reinsurance] ÷ [NPE +/(-)
RIPs related to prior year catastrophes + (Additional) returned premium related to
PYD on loss sensitive business] – Loss ratio
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.
Results from discontinued operations are excluded from all of these measures.
13

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.

14

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

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

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

Pre-tax
1,252
1,252

Three Months Ended June 30,
2018
2017
Tax Effect After-tax
Pre-tax
Tax Effect$321 $933 $ 1,667 $
557
4
321
937
1,667
557

After-tax$ 1,118
12
1,130

-

(3)
(7)

3
7

-

(66)
8

66
(8)

36

8

28

(80)

(28)

(52)

(1)

-

(1)

(58)

(20)

(38)

(32)
5
(155)
(25)
12
(14)

(7)
1
(29)
(5)
2
(3)

(25)
4
(126)
(2)
(20)
10
(11)

251
(4)
69
60
(80)
260

89
(2)
38
40
(28)
90

162
(2)
31
(8)
20
(52)
170

200
1,278

43
321

157
961

1
47
2,133

1
17
696

30
1,449

$

$

$

$

$

Six Months Ended June 30,

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

Pre-tax
$
2,479
2,479

2018
Tax Effect
$
598
598

After-tax$ 1,881(6)
1,875Pre-tax$ 3,394
3,394

2017
Tax Effect
$
1,073
1,073

After-tax$ 2,324
(9)
2,315

-

1
(37)

(1)
37

-

(16)
21

16
(21)

113

24

89

(91)

(32)

(59)

30

6

24

(111)

(39)

(72)

2
9
(136)
(33)
25
(219)

2
(30)
(7)
5
(46)

2
7
(106)
(1)
1
(26)
20
(173)

265
(5)
184
160
(86)
235

93
(2)
85
34
(30)
81

172
(3)
99
5
(8)
126
(56)
154

224
2,494

48
564

176
1,924

1
228
4,174

1
80
1,349

148
2,816

$

$

$

$

$

$

* 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.

15

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

Net income attributable to AIG$

DilutedIncome from continuing operations
Income from discontinued operations$

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

Weighted average shares outstanding:
Basic
Diluted

1.04
1.04

$

1.02
1.02
1.05

$

$

Deferred tax assets (c)Total adjusted AIG shareholders' equity$
June 30, 2018
$
68.65
$
68.40
$
57.34
891.2

June 30, 2018
61,186
230
60,956
9,853
51,103

1.21
0.01
1.22

(14.0) %NM(14.8)

$

1.18
0.01
1.19
1.53

(13.6)
NM(14.3)(31.4) %

$

925.8
948.2

6.0 %
7.6 %

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

Total common shares outstanding

$
$

903.2
916.6

Return on equity (a)Adjusted return on equity (b)As of period end:
Book value per common share (d)Book value per common share, excluding AOCI (e)Adjusted book value per common share (f)$Six Months Ended June 30,% Inc.
2018
2017(Dec.)

$

$

$
$

897.7

2.04
2.04
2.09

$

$

$
$

10,21450,358$June 30, 2017
73,732
4,962
68,770$June 30, 2017 % Inc. (Dec.)$
81.62(15.9) %$76.12(10.1)
$
60.31
(4.9)
903.4

14,28754,483

2.42
0.01
2.43

(14.5) %NM(14.8)

2.36
0.01
2.37
2.88

(13.6)
NM(13.9)(27.4) %

953.1
976.6

5.9 %
7.7 %

March 31, 2018
62,792
2,220
60,572

March 31, 2018 % Inc. (Dec.)$
69.95(1.9) %
$
67.48
1.4
$
56.10
2.2

$

905.6
920.9

6.1 %
10.5 %

$

2.07
2.07

6.2 %
10.0 %$

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

December 31, 2017 % Inc. (Dec.)$
72.49(5.3) %
$
66.41
3.0
$
54.74
4.7
899.0

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

16

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
June 30,
2018
2017
Adjusted pre-tax income
Interest expense (benefit) on attributed financial debt

$

1,144
1,144
294
850

$

1,702
(43)
1,745
561
1,184

$
$

41,836
41,4748.2 %$$44,57144,89810.5 %

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

Net Premiums Written - Change in Constant Dollar
Three Months Ended
June 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

0.4 %
5.1
5.5 %

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

17

$

$

Three Months Ended
June 30,
2018
2017
3,065
$
3,613
27
(80)
28
3,120
$
3,533

$

$

Six Months Ended
June 30,
2018
2017
6,326
$
7,299
104
(91)
38
6,468
$
7,208

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
June 30,20182017
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

18

$

$
$

$
$

$
$

$
$

$

16
3,408
(2)
3,422

$

15
2,330
2,345

$

418
410
152
980

$

41
565
46
652

$

490
6,713
196
7,399

$

$

$

$

$

$

31
2,862
(1)
2,892
4
1,798
1,802
400
381
166
947
67
76
7
150
502
5,117
172
5,791