AIG Reports Second Quarter 2022 Results
August 8, 2022
General Insurance combined ratio of 87.4% improved by 5.1 points from the prior year quarter and was the firstsub-90% combined ratio in over fifteen years
General Insurance adjusted accident year combined ratio* of 88.5% improved by 2.6 points from the prior year
quarter
Global Commercial Lines adjusted accident year combined ratio* of 85.3% improved by 4.0 points from the prioryear quarter
Global Commercial Lines Net Premiums Written (NPW) growth of 5% (8% on a constant dollar basis)
Life and Retirement posted its second consecutive quarter with more than $1.3 billion in fixed annuity deposits
and overall positive net flows
Net income per diluted common share was $3.78 compared to $0.11 in the prior year quarter
Adjusted after-tax income* (AATI) per diluted common share of $1.19 compared to $1.52 in the prior year quarter,
driven by a 73% increase in General Insurance underwriting income, offset by lower alternative investment income
Repurchased $1.7 billion of AIG common stock in the second quarter and $3.1 billion as of June 30, 2022
Redeemed and repurchased $7.6 billion in aggregate principal amount of debt
SECOND QUARTER NOTEWORTHY ITEMSGeneral Insurance adjusted pre-tax income (APTI) of $1.3 billion reflects a $336 million increase in underwriting income
from the prior year quarter with 5.1 points of combined ratio improvement driven by higher premiums marked by higher
renewal retentions, positive rate change and strong new business production, focused risk selection and improved terms
and conditions as well as more favorable prior year development (PYD).
Life and Retirement APTI of $563 million reflects lower net investment income (NII) due in large part to lower alternative
investment returns and lower yield enhancements, partially offset by more favorable mortality compared to the prior year
quarter. In the current quarter, the impact of higher new money rates, which reflects benefits from higher interest rates, andwider credit spreads has provided uplift to base portfolio NII. Life and Retirement return on adjusted segment common
equity* (Adjusted ROCE) for the second quarter was 7.6%.
Return on common equity (ROCE) and Adjusted ROCE* were 24.1% and 7.0%, respectively, on an annualized basis forthe second quarter of 2022.
* Refers to financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP
measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Comment on Regulation G and
Non-GAAP Financial Measures.
NEW YORK--(BUSINESS WIRE)--Aug. 8, 2022-- American International Group, Inc. (NYSE: AIG) today reported financial results for the second
quarter ended June 30, 2022.
AIG Chairman & Chief Executive Officer Peter Zaffino said: “AIG had another excellent quarter. General Insurance reported outstanding results andLife and Retirement again delivered a solid performance considering the significant market headwinds in the second quarter.
“Due to the high degree of equity market volatility in May and June, we decided to defer the launch of the Corebridge Financial initial public offering(IPO). Deferring the IPO provided us with an opportunity to further accelerate progress on numerous separation initiatives and to solidify the capital
structure of this business as a standalone company. Completing the IPO is a significant priority for us and we remain ready to execute, subject toregulatory approvals and market conditions.
“General Insurance’s culture of underwriting excellence continues to be evidenced in our financial results. Meaningful top-line growth, strong renewal
retention and new business, intentional improvements in business mix, rate above loss cost trends, coupled with a disciplined and focused approachto minimizing volatility, led to impressive profitability improvement.
“The combined ratio of 87.4% represents AIG’s first sub-90 quarter in over fifteen years and improved 510 basis points year-over-year. Consistent with
our strategy to manage volatility, catastrophe losses were very modest in the quarter coming in at $121 million, or 1.8 points of the combined ratio. The
adjusted accident year combined ratio of 88.5% improved for the 16th consecutive quarter – totaling 1,250 basis points of improvement over thisperiod and 2,080 basis points of improvement in Global Commercial Lines. Overall, I am very pleased with our overall performance and themomentum we have heading into the second half of 2022.
“Life and Retirement experienced another solid quarter of sales growth in fixed annuities supported by Blackstone’s origination capabilities.
Additionally, Life and Retirement is starting to see a positive impact in its base portfolio net investment income from higher interest rates and credit
spreads.

“During the second quarter, we began to transfer certain assets under management to BlackRock in accordance with our recently announced asset
management arrangement. We expect the majority of the remainder of the approximately $150 billion of assets under management to be transferredby the end of 2022.
“Lastly, certain capital management priorities were accelerated in the second quarter, including issuing $6.5 billion of Corebridge Financial debt andsubsequently redeeming or repurchasing $7.6 billion in aggregate principal debt of AIG. In addition, we returned $2.0 billion to shareholders through$1.7 billion of AIG common stock repurchases and $256 million of dividends.
“Thanks to the outstanding efforts and hard work of our global colleagues, AIG continues to drive excellence across the company that will create
long-term value for all our stakeholders.”
For the second quarter of 2022, pre-tax income from continuing operations was $4.3 billion, up from $147 million from the prior year quarter. Second
quarter of 2022 net income attributable to AIG common shareholders was $3.0 billion, or $3.78 per diluted common share, compared to net income of$91 million, or $0.11 per diluted common share, in the prior year quarter. The pre-tax income increase was primarily due to an increase in net realized
gains on the Fortitude Re funds withheld embedded derivative, and overall strong General Insurance underwriting results, including higher premiums
earned, margin expansion, and higher favorable PYD, partially offset by lower alternative investment income. The pre-tax income increase waspartially offset by income attributable to noncontrolling interest associated with Blackstone’s 9.9% interest in the Life and Retirement business,
mitigated by the use of proceeds received in the transaction through debt reduction and share repurchase activities.
AATI was $979 million, or $1.19 per diluted common share, for the second quarter of 2022 compared to $1.3 billion, or $1.52 per diluted commonshare, in the prior year quarter. The decrease in AATI was primarily due to lower alternative investment income, offset in part by a $336 million pre-tax
increase in General Insurance underwriting results.
Total consolidated NII for the second quarter of 2022 was $2.6 billion, down 29% from $3.7 billion in the prior year quarter, primarily due to lower
alternative investment income, lower call and tender income and lower returns from fair value option equity securities. Total NII on an APTI basis* was$2.5 billion, a decrease of $678 million compared to the prior year quarter.
Book value per common share was $58.16 as of June 30, 2022, a decrease of 16% from March 31, 2022 and 27% from December 31, 2021, reflecting
a reduction in accumulated other comprehensive income (AOCI) as a result of higher market interest rates. Adjusted book value per common share*
was $72.23, an increase of 2% from March 31, 2022 and 5% from December 31, 2021 reflecting growth in retained earnings from net income inexcess of dividends and share repurchases. Adjusted tangible book value per common share was $66.06, an increase of 2% from March 31, 2022 and
5% from December 31, 2021.
For the second quarter of 2022, AIG repurchased approximately $1.7 billion of common stock or approximately 30 million shares and paid $256 millionof common and preferred dividends, resulting in AIG Parent liquidity of $5.6 billion as of June 30, 2022. AIG’s ratio of total debt and preferred stock tototal capital at June 30, 2022 was 31.1%, up from 27.8% at March 31, 2022, principally due to the impact of higher interest rates on of AOCI.
Today, the AIG Board of Directors declared a quarterly cash dividend of $0.32 per share on AIG common stock (NYSE: AIG). The dividend is payable
on September 30, 2022 to stockholders of record at the close of business on September 16, 2022.
The AIG Board of Directors also declared a quarterly cash dividend of $365.625 per share on AIG Series A 5.85% Non-Cumulative Perpetual
Preferred Stock, with a liquidation preference of $25,000 per share, which is represented by depositary shares (NYSE: AIG PRA), each representing a
1/1,000th interest in a share of preferred stock. Holders of depositary shares will receive $0.365625 per depositary share. The dividend is payable on
September 15, 2022 to holders of record at the close of business on August 31, 2022.
FINANCIAL SUMMARY

Three Months Ended
June 30,($ in millions, except per common share amounts)

2021

Net income attributable to AIG common shareholders $ 912022
$ 3,028

Net income per diluted share attributable
to AIG common shareholders$ 0.11$ 3.78Adjusted pre-tax income (loss)$ 1,708$ 1,359

General Insurance

1,194

1,257

Life and Retirement

1,124

563

Other Operations

Net investment income
Net investment income, APTI basis

(610)

(461)

$ 3,675$ 2,604

3,182

2,504

Adjusted after-tax income attributable to AIG commonshareholders$ 1,331$ 979$ 1.52$ 1.19- diluted(in millions)

872.9

800.7

Return on common equity

0.6

%

24.1

%

Adjusted return on common equity

10.5

%

7.0

%

Adjusted after-tax income per diluted share attributable
to AIG common shareholders*

Weighted average common shares outstanding

Book value per common share$ 76.73$ 58.16

Adjusted book value per common share$ 60.07$ 72.23

Common shares outstanding (in millions)

854.9

771.3

* For the three-month period ended June 30, 2022, an option for Blackstone to exchange all or a portion of its ownership interest in Corebridge for AIG
common shares was dilutive for the calculation of AATI per common share. The dilutive impact was an additional 42,572,031 shares for the period.
The comparisons on the following pages are against the first quarter of 2021, unless otherwise indicated. Refer to the AIG Second Quarter 2022
Financial Supplement, which is posted on AIG's website in the Investors section, for further information.
GENERAL INSURANCE
Three Months Ended June 30,($ in millions)
Gross premiums written

2021

2022

$ 9,503$ 9,581

Change1%

Net premiums written$ 6,860$ 6,866—

North America

3,156

3,401

8

North America Commercial Lines

2,655

2,918

10

North America Personal Insurance

501

483

(4)

International

3,704

3,465

(6)

International Commercial Lines

2,062

2,037

(1)

International Personal Insurance

1,642

1,428

(13)

Underwriting income (loss)

%

$ 463

$ 799

73

North America

169

406

140

North America Commercial Lines

162

416

157

North America Personal Insurance

7

(10)

NM

International

294

393

34

International Commercial Lines

218

349

60

International Personal Insurance

76

44

(42)

Net investment income, APTI basis

$ 731

$ 458

(37)

%

Adjusted pre-tax income$ 1,194$ 1,257

5

%

12.0

% (0.3)pts

pts

Return on adjusted segment common equity

12.3

%

%

Underwriting ratios:
North America Combined Ratio (CR)

93.7

86.3

(7.4)

North America Commercial Lines CR

93.0

83.6

(9.4)

North America Personal Insurance CR

98.1

102.3

4.2

International CR

91.8

88.5

(3.3)

International Commercial Lines CR

88.7

82.4

(6.3)

International Personal Insurance CR

95.2

96.9

1.7

General Insurance (GI) CR

92.5

87.4

(5.1)

GI Loss ratio

61.3

56.2

(5.1)

(2.1)

(1.8)

0.3

Prior year development, net of reinsurance and prior year premiums 0.7

2.9

2.2

GI Accident year loss ratio, as adjusted

59.9

57.3

(2.6)

GI Expense ratio

31.2

31.2

—

GI Accident year combined ratio, as adjusted

91.1

88.5

(2.6)

North America AYCR

92.4

89.9

(2.5)

North America Commercial Lines AYCR

91.2

88.2

(3.0)

North America Personal Insurance AYCR

100.1

99.7

(0.4)

International AYCR

90.2

87.2

(3.0)

International Commercial Lines AYCR

86.9

81.4

(5.5)

International Personal Insurance AYCR

94.0

95.2

1.2

pts

Less: impact on loss ratio
Catastrophe losses and reinstatement premiums

Accident year combined ratio, as adjusted (AYCR):
pts

General Insurance

Net premiums written in the second quarter of 2022 increased 0.1% (5% on a constant dollar basis) to $6.9 billion andincluded Global Commercial Lines growth of 5% (8% on a constant dollar basis), reflected continued positive rate change,higher renewal retentions and strong new business production, particularly in Property. This growth was offset by a $232
million decrease in Global Personal Insurance, which had lower production in Warranty and was impacted by underwriting
actions taken in Private Client Group to improve risk-adjusted returns, partially offset by growth in Travel and Personal
Accident & Health.
Second quarter 2022 APTI increased by $63 million to $1.3 billion from the prior year quarter driven by stronger
underwriting results, offset by lower alternative investment income. Underwriting income increased by $336 million and was$799 million in the second quarter of 2022, from $463 million in the prior year quarter. The second quarter of 2022
underwriting income included $119 million of catastrophe losses, net of reinsurance, compared to $118 million in the prioryear quarter, which was flat year over year. During the second quarter of 2022 General Insurance had favorable net PYD
of $202 million compared to favorable net PYD of $51 million in the prior year quarter.
General Insurance combined ratio was 87.4, a 5.1 point improvement and strong result compared to 92.5 in the prior year
quarter, driven by loss ratio improvement that included higher favorable PYD. The General Insurance accident year
combined ratio, as adjusted, was 88.5, an improvement of 2.6 points from the prior year quarter primarily as a result ofcontinued earn-in of rate in excess of loss cost trends, favorable business mix and portfolio management strategy
execution, resulting in a 57.3 accident year loss ratio, as adjusted*. The expense ratio of 31.2 was unchanged from theprior year quarter.
Commercial Lines underwriting results reflect the quality of the portfolio and its continued profitable growth. The accident
year combined ratio, as adjusted, for North America Commercial Lines improved 3.0 points to 88.2, and for International

Commercial Lines improved 5.5 points to 81.4 compared to the prior year quarter.
Personal Insurance underwriting results slightly decreased, largely reflecting mix shifts in the business as well as lower
premiums in the period. The North America Personal Insurance accident year combined ratio, as adjusted, improved 0.4
points to 99.7 compared to the prior year quarter, reflecting favorable changes in business mix and strong growth in Travel
premiums. The International Personal Insurance accident year combined ratio, as adjusted, deteriorated by 1.2 points to95.2 due to an increased accident year loss ratio, driven by mix of business changes, increased claims, as well as a higher
acquisition ratio.
LIFE AND RETIREMENT
Three Months Ended
June 30,($ in millions, except as indicated)

2021
$

2022

Change563(50)

Adjusted pre-tax income$ 1,124

Individual Retirement

617

204

(67)

Group Retirement

347

164

(53)

Life Insurance

20

117

485

Institutional Markets

140

78

(44)

Premiums and fees

$ 2,417

1,862

(23)

Individual Retirement

273

267

(2)

Group Retirement

134

119

(11)

Life Insurance

887

931

5

Institutional Markets

1,123

545

(51)

7,099

(21)

$

Premiums and deposits$ 9,035

Individual Retirement

3,978

3,620

(9)

Group Retirement

2,255

1,772

(21)

Life Insurance

1,161

1,157

—

Institutional Markets

1,641

550

(66)

80

NM

628

NM

Net flows
Individual Retirement*$ (306)
(77)

$

$

%

%

%

%

Group Retirement(229)

Net investment income, APTI basis

(548)

(139)

$ 2,376

$

1,989

(16)

%

16.4

%

7.6

% (8.8)pts

Return on adjusted segment common equity*2021 includes $0.6 billion of net outflows from Retail Mutual Funds that were transferred or liquidated in the third quarter of 2021.
Life and Retirement

Life and Retirement reported APTI of $563 million for the second quarter of 2022, compared to $1.1 billion in the prior year
quarter, primarily due to the impact of higher interest rates, lower equity markets, and NII. Declining equity markets
together with rising interest rates and widening credit spreads drove accelerated deferred policy acquisition cost (DAC)
amortization, higher policyholder reserves, and lower fee income in Individual Retirement and Group Retirement, as well as
lower NII, including alternative investments returns, lower income from fair value options bonds and lower call and tenderactivity. Accelerated DAC amortization and increased SOP 03-1 reserves resulted in lower asset values which led to a
non-cash impact of approximately $202 million compared to the prior year quarter.
These decreases are partially offset by less adverse mortality; the adverse mortality experience in Life Insurance is in linewith the previously disclosed estimate of exposure sensitivity of $65 million to $75 million per 100,000 population deaths
based on the reported second quarter COVID-related deaths in the United States.
OTHER OPERATIONS
Three Months Ended
June 30,($ in millions)2021

Change(494)

20

Corporate and Other$ (617)

Asset Management

101

163

61

Adjusted pre-tax loss before consolidation and eliminations (516)

(331)

36

Consolidation and eliminations

(130)

(38)

(461)

24

Adjusted pre-tax loss

$

2022

(94)
$ (610)$%%

Other Operations

Second quarter adjusted pre-tax loss (APTL) was $461 million, including $130 million of reductions from consolidation andeliminations, compared to APTL of $610 million, including $94 million of reductions from consolidation and eliminations, inthe prior year quarter. The improvement in APTL before consolidation and eliminations reflects lower general operating
expenses and corporate interest expense as well as improvement in run-off underwriting results.
Before consolidation and eliminations, the improvement in APTL reflects lower underwriting loss attributable to absence ofunfavorable PYD within the run-off business, lower corporate and other general operating expenses and lower corporate
interest expense primarily driven by interest savings from debt redemptions and repurchases and cash tender offers.
LIFE AND RETIREMENT SEPARATIONOn October 26, 2020, AIG announced its intention to separate its Life and Retirement business from AIG.
On November 2, 2021, AIG and Blackstone Inc. (Blackstone) completed the acquisition by Blackstone of a 9.9 percent equity stake in Corebridge
Financial, Inc., formerly known as SAFG Retirement Services, Inc. (Corebridge), which is the holding company for AIG’s Life and Retirement business.
Pursuant to the definitive agreement, Blackstone will be required to hold its ownership interest in Corebridge following the completion of the separationof the Life and Retirement business, subject to exceptions permitting Blackstone to sell 25%, 67% and 75% of its shares after the first, second andthird anniversaries, respectively, of the initial public offering of Corebridge (the IPO), with the transfer restrictions terminating in full on the fifthanniversary of the IPO. In the event that the IPO of Corebridge is not completed prior to November 2, 2023, Blackstone will have the right to require
AIG to undertake the IPO, and in the event that the IPO has not been completed prior to November 2, 2024, Blackstone will have the right to exchange
all or a portion of its ownership interest in Corebridge for shares of AIG’s common stock on the terms set forth in the definitive agreement. On
November 1, 2021, Corebridge declared a dividend payable to AIG Parent in the amount of $8.3 billion. In connection with such dividend, Corebridge
issued a promissory note to AIG Parent in the amount of $8.3 billion, which is required to be paid to AIG Parent prior to the IPO of Corebridge. On April
5, 2022, Corebridge issued senior unsecured notes in the aggregate principal amount of $6.5 billion, the proceeds of which were used to repay a
portion of the $8.3 billion promissory note previously issued by Corebridge to AIG. While we currently believe the IPO is the next step in the separationof the Life and Retirement business from AIG, no assurance can be given regarding the form that future separation transactions may take or the
specific terms or timing thereof, or that a separation will in fact occur. Any separation transaction will be subject to the satisfaction of various conditions
and approvals, including approval by the AIG Board of Directors, receipt of insurance and other required regulatory approvals, and satisfaction of any
applicable requirements of the Securities and Exchange Commission.
Additionally, on March 28, 2022, AIG announced that it plans to rebrand SAFG Retirement Services, Inc., the parent company of its Life andRetirement business, as Corebridge Financial, Inc. when it becomes a public company. Also on this date, AIG and BlackRock entered into a binding
letter of intent pursuant to which BlackRock will manage certain liquid fixed income and private placement assets representing up to $60 billion ofassets on behalf of AIG and up to $90 billion of assets on behalf of AIG’s Life and Retirement business; AIG and AIG’s Life and Retirement businesswill gain access to BlackRock’s world-class asset management capabilities as well as its investment management technology, Aladdin.
CONFERENCE CALL
AIG will host a conference call tomorrow, Tuesday, August 9, 2022 at 8:30 a.m. ET to review these results. The call is open to the public and can beaccessed via a live listen-only webcast in the Investors section of http://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.
Certain statements in this press release and other publicly available documents may include, and officers and representatives of AIG may from time totime make and discuss, statements which, to the extent they are not statements of historical or present fact, may constitute “forward-looking
statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are intended to provide
management’s current expectations or plans for AIG’s future operating and financial performance, based on assumptions currently believed to be valid
or accurate. Forward-looking statements are often preceded by, followed by or include words such as “will,” “believe,” “anticipate,” “expect,”“expectations,” “intend,” “plan,” “strategy,” “prospects,” “project,” “anticipate,” “should,” “guidance,” “outlook,” “confident,” “focused on achieving,”“view,” “target,” “goal,” “estimate” and other words of similar meaning in connection with a discussion of future operating or financial performance.
These statements, may include, among other things, projections, goals and assumptions that relate to future actions, prospective services or products,
future performance or results of current and anticipated services or products, sales efforts, expense reduction efforts, the outcome of contingencies
such as legal proceedings, anticipated organizational, business or regulatory changes, such as the separation of the Life and Retirement businessfrom AIG, the effect of catastrophes and macroeconomic and/or geopolitical events, anticipated dispositions, monetization and/or acquisitions ofbusinesses or assets, or successful integration of acquired businesses, management succession and retention plans, exposure to risk, trends inoperations and financial results, and other statements that are not historical facts.
All forward-looking statements involve risks, uncertainties and other factors that may cause AIG’s actual results and financial condition to differ,possibly materially, from the results and financial condition expressed or implied in the forward-looking statements. Factors that could cause AIG’s
actual results to differ, possibly materially, from those in the specific projections, goals, assumptions and statements include, without limitation:

AIG’s ability to continue to separate the Life and Retirement business, including through an initial public offering, and theimpact separation may have on AIG, its businesses, employees, contracts and customers;
the effects of economic conditions in the markets in which AIG and its businesses operate in the U.S. and globally and anychanges therein, including financial market conditions, fluctuations in interest rates and foreign currency exchange rates
and inflationary pressures, each of which may also be affected by geopolitical conflicts, including the conflict between
Russia and Ukraine;
the occurrence of catastrophic events, both natural and man-made, including geopolitical conflicts, pandemics, civil unrest
and the effects of climate change;
disruptions in the availability of AIG’s electronic data systems or those of third parties, including as a result of potential
information technology, cybersecurity or data security breaches due to supply chain disruptions, cyber-attacks or security
vulnerabilities, the likelihood of which may increase as a result of remote business operations;the effectiveness of AIG’s enterprise risk management policies and procedures, including with respect to business
continuity and disaster recovery plans;changes in judgments concerning potential cost-saving opportunities;
availability of reinsurance or access to reinsurance on acceptable terms;
concentrations in AIG’s investment portfolios, including as a result of our asset management relationships with Blackstone
and BlackRock;changes in the valuation of AIG’s investments;
the effectiveness of strategies to recruit and retain key personnel and to implement effective succession plans;actions by rating agencies with respect to AIG’s credit and financial strength ratings as well as those of its businesses andsubsidiaries;changes to sources of or access to liquidity;changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill;changes in judgments or assumptions concerning insurance underwriting and insurance liabilities;
AIG’s ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired
businesses;

nonperformance or defaults by counterparties, including Fortitude Reinsurance Company Ltd. (Fortitude Re);the requirements, which may change from time to time, of the global regulatory framework to which AIG is subject;significant legal, regulatory or governmental proceedings;
the effects of sanctions related to the conflict between Russia and Ukraine and failure to comply therewith;
AIG's ability to effectively execute on the AIG 200 operational programs designed to modernize AIG's operating
infrastructure and enhance user and customer experiences, and AIG’s ability to achieve anticipated cost savings from AIG
200;
the impact of COVID-19 and its variants and responses thereto;
AIG’s ability to effectively execute on environmental, social and governance targets and standards; andsuch other factors discussed in Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Resultsof Operations (MD&A) in AIG’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022 (which will be
filed with the SEC), and Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A in AIG’s Annual Report on Form 10-K forthe year ended December 31, 2021.
The forward-looking statements speak only as of the date of this press release, or in the case of any document incorporated by reference, the date ofthat document. AIG is not under any obligation to publicly update or revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materiallyfrom those expressed or implied in the forward-looking statements is disclosed from time to time in our filings with the SEC.
COMMENT ON REGULATION G AND NON-GAAP FINANCIAL MEASURES
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 and representative 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 are listed below and may not be comparable to similarly-named measures reported by othercompanies. The reconciliations of such measures to the most comparable GAAP measures in accordance with Regulation G are included within therelevant tables attached to this news release or in the Second Quarter 2022 Financial Supplement available in the Investors section of AIG’s website,www.aig.com.
AIG uses the following operating performance measures because AIG believes they enhance the understanding of the underlying profitability ofcontinuing operations and trends of AIG’s business segments. 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.
Book Value per Common Share, Excluding Accumulated Other Comprehensive Income (Loss) (AOCI) adjusted for the cumulative
unrealized gains and losses related to Fortitude Re funds withheld assets and Deferred Tax Assets (DTA) (Adjusted Book Value per
Common Share) is used to show the amount of AIG’s net worth on a per-common share basis after eliminating items that can fluctuate significantly
from period 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 for salesecurities portfolio wherein there is largely no offsetting impact for certain related insurance liabilities. In addition, AIG adjusts for the cumulative
unrealized gains and losses related to Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG post
deconsolidation of Fortitude Re (Fortitude Re funds withheld assets) since these fair value movements are economically transferred to Fortitude Re.
AIG excludes deferred tax assets representing U.S. tax attributes related to net operating loss carryforwards and foreign tax credits as they have notyet been utilized. Amounts for interim periods are estimates based on projections of full-year attribute utilization. As net operating loss carryforwards
and foreign tax credits are utilized, the portion of the DTA utilized is included in these book value per common share metrics. Adjusted Book Value per
Common Share is derived by dividing Total AIG common shareholders’ equity, excluding AOCI adjusted for the cumulative unrealized gains andlosses related to Fortitude Re funds withheld assets, and DTA (Adjusted Common Shareholders’ Equity ), by total common shares outstanding.
Book Value per Common Share, Excluding Goodwill, Value of Business Acquired (VOBA), Value of Distribution Channel Acquired (VODA),
Other Intangible Assets, AOCI adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets, andDeferred Tax Assets (DTA) (Adjusted Tangible Book Value per Common Share) is used to provide more accurate measure of the realizable valueof shareholder on a per-common share basis. Adjusted Tangible Book Value per Common Share is derived by dividing Total AIG commonshareholders’ equity, excluding intangible assets, AOCI adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld
assets, and DTA (Adjusted Tangible Common Shareholders’ Equity ), by total common shares outstanding.
AIG Return on Common Equity – Adjusted After-tax Income Excluding AOCI adjusted for the cumulative unrealized gains and losses related
to Fortitude Re funds withheld assets and DTA (Adjusted Return on Common Equity) is used to show the rate of return on commonshareholders’ equity. AIG believes this measure is useful to investors because it eliminates items that can fluctuate significantly from period 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 for sale securities portfolio
wherein there is largely no offsetting impact for certain related insurance liabilities. In addition, AIG adjusts for the cumulative unrealized gains andlosses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re. 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 beenutilized. 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 Common Equity. Adjusted Return on Common Equity is derived
by dividing actual or annualized adjusted after-tax income attributable to AIG common shareholders by average Adjusted Common Shareholders’Equity.
General Insurance and Life and Retirement Adjusted Segment Common Equity is based on segment equity adjusted for the attribution of debt
and preferred stock (Segment Common Equity) and is consistent with AIG’s Adjusted Common Shareholders’ Equity definition.
General Insurance and Life and Retirement Return on Adjusted Segment Common Equity – Adjusted After-tax Income (Return on Adjusted

Segment Common Equity) is used to show the rate of return on Adjusted Segment Common Equity. Return on Adjusted Segment Common Equity isderived by dividing actual or annualized Adjusted After-tax Income by Average Adjusted Segment Common Equity.
Adjusted After-tax Income Attributable to General Insurance and Life and Retirement is derived by subtracting attributed interest expense,
income tax expense and attributed dividends on preferred stock from APTI. Attributed debt and the related interest expense and dividends on
preferred stock are calculated based on AIG’s internal allocation 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 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 segments.
Adjusted Pre-tax Income (APTI) is derived by excluding the items set forth below from income from continuing operations before income tax. Thisdefinition 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 enhance transparency to the underlying economics of transactions;and measures that AIG believes to be common to the industry. APTI is a GAAP measure for AIG’s segments. Excluded items include the following:changes in fair value of securities used to hedge guaranteed living benefits;changes in benefit reserves and deferred policy acquisition costs (DAC), value ofbusiness acquired (VOBA), and deferred sales inducements (DSI) related to net
realized gains and losses;changes in the fair value of equity securities;
net investment income on Fortitude Re funds withheld assets;
following deconsolidation of Fortitude Re, net realized gains and losses on Fortitude
Re funds withheld assets;loss (gain) on extinguishment of debt;
all net realized gains and losses except earned income (periodic settlements andchanges in settlement accruals) on derivative instruments used for non-qualifying(economic) hedging or for asset replication. Earned income on such economic hedges
is reclassified from net realized gains and losses to specific APTI line items based on
the economic risk being hedged (e.g. net investment income and interest credited topolicyholder account balances);income or loss from discontinued operations;net loss reserve discount benefit (charge);
pension expense related to lump sum
payments to former employees;
net gain or loss on divestitures;
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 prioryear reserve development for which AIG has
ceded the risk under retroactive reinsurance
agreements and related changes inamortization of the deferred gain;
integration and transaction costs associatedwith acquiring or divesting businesses;
losses from the impairment of goodwill; andnon-recurring costs associated with theimplementation of non-ordinary course legal
or regulatory changes or changes toaccounting principles.

Adjusted After-tax Income attributable to AIG common shareholders (AATI) is derived by excluding the tax effected APTI adjustments describedabove, dividends on preferred stock, noncontrolling interest on net realized gains (losses), other non-operating expenses 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, the expense ratio and the combined ratio as measuresof underwriting performance. These ratios are relative measurements that describe, for every $100 of net premiums earned, the amount of losses andloss adjustment expenses (which for General Insurance excludes net loss reserve discount), and the amount of other underwriting expenses thatwould 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, and thus 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 aneffect on pricing and consequently on profitability as reflected in underwriting income and associated ratios.
Accident year loss and Accident year combined ratios, as adjusted (Accident year loss ratio, ex-CAT and Accident year combined ratio,
ex-CAT): both the accident year loss and accident year combined ratios, as adjusted, exclude catastrophe losses (CATs) and related reinstatement
premiums, prior year development, net of premium adjustments, and the impact of reserve discounting. Natural catastrophe losses are generally
weather or seismic events, in each case, having a net impact on AIG in excess of $10 million and man-made catastrophe losses, such as terrorism
and civil disorders that exceed the $10 million threshold. AIG believes that 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 of management’s control. AIG also excludes
prior year development to provide transparency related to current accident year results.
Underwriting ratios are computed as follows:

1. Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned (NPE)
2. Acquisition ratio = Total acquisition expenses ÷ NPE
3. General operating expense ratio = General operating expenses ÷ NPE
4. Expense ratio = Acquisition ratio + General operating expense ratio
5. Combined ratio = Loss ratio + Expense ratio
6. CATs and reinstatement premiums = [Loss and loss adjustment expenses incurred – (CATs)] ÷ [NPE +/(-) Reinstatement
premiums related to catastrophes] – Loss ratio
7. Accident year loss ratio, as adjusted (AYLR ex-CAT) = [Loss and loss adjustment expenses incurred – CATs – PYD] ÷[NPE +/(-) Reinstatement premiums related to catastrophes +/(-) Prior year premiums + Adjustment for ceded premium
under reinsurance contracts related to prior accident years]
8. Accident year combined ratio, as adjusted (AYCR ex-CAT) = AYLR ex-CAT + Expense ratio
9. Prior year development net of reinsurance and prior year premiums = [Loss and loss adjustment expenses incurred – CATs
– PYD] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes +/(-) Prior year premiums] – Loss ratio – CATs andreinstatement premiums ratio.
Premiums and deposits: includes direct and assumed amounts received and earned on traditional life insurance policies, group benefit policies andlife‑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. We believe the measure of premiums and deposits is useful in understanding customer demand for our
products, evolving product trends and our sales performance period over period.
Results from discontinued operations are excluded from all of these measures.
American International Group, Inc. (AIG) is a leading global insurance organization. AIG member companies provide a wide range of property casualty
insurance, life insurance, retirement solutions and other financial services to customers in approximately 70 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.
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 have been
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 ofAmerican International Group, Inc. Products or services may not be available in all countries and jurisdictions, and coverage is subject to underwriting
requirements and actual policy language. Non-insurance products and services may be provided by independent third parties. Certain propertycasualty 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.
American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation($ in millions, except per common share data)

Reconciliations of Adjusted Pre-tax and After-tax Income
Three Months Ended June 30,
2021

2022
Total
Tax

Non-

Total Tax Non-

(Benefit) controlling
Pre-tax Charge

Pre-tax income/net income, including noncontrollinginterests
Noncontrolling interests

$ 147

$ (3)

(Benefits) controlling

Interests(d) Tax

$ —

$ 150

(51)

(51)

Pre-tax Charge$ 4,321

$ 928

After

Interests(d) Tax

$ —

(356)

$ 3,392(356)

Pre-tax income/net income attributable to AIG

147

(3)

(51)

99

4,321

928

(356)

3,036

Dividends on preferred stock

8

8

Net income attributable to AIG common shareholders

91

3,028

Adjustments:
Changes in uncertain tax positions and other tax
adjustments(a)

(35)

—

35

(3)

—

3

Deferred income tax valuation allowance releases(b)

25

—

(25)

17

—

(17)

Changes in fair value of securities used to hedge guaranteedliving benefits

(13)

(2)

—

(11)

(10)

(2)

—

(8)

Changes in benefit reserves and DAC, VOBA and DSI
related to net realized gains (losses)

(120)

(25)

—

(95)

128

27

—

101

Changes in the fair value of equity securities

13

3

—

10

30

6

—

24

Loss on extinguishment of debt

106

23

—

83

299

63

—

236

Net investment income on Fortitude Re funds withheld assets (507)

(107)

—

(400)

(188)

(40)

—

(148)

Net realized (gains) losses on Fortitude Re funds withheld
assets

(173)

(37)

—

(136)

86

19

—

67

Net realized (gains) losses on Fortitude Re funds withheld
embedded derivative

2,056

431

—

1,625

(2,776)(583)—(2,193)

Net realized (gains) losses(c)

59

17

—

42

(620)

(154)

—

(466)

Loss from discontinued operations—

1

Net loss on divestitures

1

—

—

1

1

1

—

—

Non-operating litigation reserves and settlements

—

—

—

—

(4)

(1)

—

(3)

Favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements

(65)

(14)

—

(51)

(144)

(30)

—

(114)

Net loss reserve discount charge

22

5

—

17

14

4

—

10

Integration and transaction costs associated with acquiring ordivesting businesses

35

7

—

28

38

8

—

30

Restructuring and other costs

126

26

—

100

175

37

—

138

Non-recurring costs related to regulatory or accountingchanges

21

4

—

17

9

2

—

7

—

—

283

283

Noncontrolling interests(d)Adjusted pre-tax income/Adjusted after-tax income
attributable to AIG common shareholders$ 1,708 $ 318$ (51)$ 1,331 $ 1,359$ 299$ (73)$ 979

Reconciliations of Adjusted Pre-tax and After-tax Income
Six Months Ended June 30,
2021

2022
Total
Tax

Total
Tax

Non-

After

(Benefit)

controlling

Interests(d) Tax

Pre-tax Charge

Non-(Benefit) controlling
Pre-tax Charge

Pre-tax income/net income, including noncontrollinginterests$ 4,875 $ 795

Noncontrolling interests
Pre-tax income/net income attributable to AIG

4,875

795

$ —

$ 4,080 $ 10,156 $ 2107

(105)

(105)

(105)

3,975

10,156

2,107

After

Interests(d) Tax$ —$ 8,048

(752)

(752)

(752)

7,296

Dividends on preferred stock

15

15

Net income attributable to AIG common shareholders

3,960

7,281

Adjustments:
Changes in uncertain tax positions and other tax
adjustments(a)

866

—

(866)

88

—

(88)

Deferred income tax valuation allowance (releases) charges(b)

(661)

—

661

23

—

(23)

Changes in fair value of securities used to hedge guaranteedliving benefits

(35)

(7)

—

(28)

(23)

(5)

—

(18)

Changes in benefit reserves and DAC, VOBA and DSI related
to net realized gains (losses)

83

18

—

65

401

84

—

317

Changes in the fair value of equity securities

(9)

(2)

—

(7)

57

12

—

45

Loss on extinguishment of debt

98

21

—

77

299

63

—

236

Net investment income on Fortitude Re funds withheld assets

(993)

(209)

—

(784)

(479)

(101)

—

(378)

Net realized (gains) losses on Fortitude Re funds withheld
assets

(346)

(73)

—

(273)

226

48

—

178

Net realized gains on Fortitude Re funds withheld embedded
derivative

(326)

(68)

—

(258)

(6,094)(1,280)—(4,814)

Net realized gains(c)

(568)

(128)

—

(440)

Loss from discontinued operations(1,808)(435)—(1,373)—

1

Net gain on divestitures

(6)

(1)

—

(5)

(39)

(8)

—

(31)

Non-operating litigation reserves and settlements

—

—

—

—

(38)

(8)

—

(30)

Favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements

(84)

(18)

—

(66)

(144)

(30)

—

(114)

Net loss reserve discount benefit

(10)

(2)

—

(8)

(6)

(1)

—

(5)

Integration and transaction costs associated with acquiring ordivesting businesses

44

9

—

35

84

18

—

66

Restructuring and other costs

200

42

—

158

268

56

—

212

Non-recurring costs related to regulatory or accountingchanges

41

8

—

33

13

3

—

10

—

—

581

581

$ (171)$ 2,053

Noncontrolling interests(d)Adjusted pre-tax income/Adjusted after-tax income
attributable to AIG common shareholders$ 2,964 $ 590$ (105)$ 2,254 $ 2,873$ 634(a) Six months ended June 30, 2021 includes the completion of audit activity by the Internal Revenue Service.
(b) Six months ended June 30, 2021 includes an increase in the valuation allowance against a portion of certain tax attribute carryforwards of AIG's
U.S. federal consolidated income tax group, as well as net valuation allowance release in certain foreign jurisdictions.
(c) Includes all net realized 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 and net realized gains and losses on Fortitude Re funds withheld
assets.
(d) For the three and six months ended June 30, 2022, noncontrolling interests include Blackstone’s 9.9 percent equity stake in Corebridge.
Summary of Key Financial Metrics

Earnings per common share:

Three Months Ended June30,

Six Months Ended June
30,

2021

2021

2022 % Inc. (Dec.)

2022% Inc.
(Dec.)

Basic
Income from continuing operations$ 0.11$ 3.83

NM

Income from discontinued operations

—

—

NM

$ 0.11$ 3.83NM$ 4.58 $ 9.06 97.8

Income from continuing operations

0.11$ 3.78NM

4.53 $ 8.95 97.6

Income from discontinued operations

—

—

NM

—

Net income attributable to AIG common shareholders% $ 4.58 $ 9.06 97.8
—

—

NM

Diluted—NM%Net income attributable to AIG common shareholders$ 0.11$ 3.78NM$ 4.53 $ 8.95 97.6

Adjusted after-tax income attributable to AIG common shareholders per
diluted share (a)$ 1.52$ 1.19(21.7)

Basic

862.9

790.9

865.5

803.5

Diluted

872.9

800.7

874.6

813.3

% $ 2.58 $ 2.50 (3.1)

Weighted average shares outstanding:(a) For the three- and six-month periods ended June 30, 2022, an option for Blackstone to exchange all or a portion of its ownership interest in
Corebridge for AIG common shares was dilutive for the calculation of Adjusted after-tax income per common share attributable to AIG commonshareholders. The dilutive impact was an additional 42,572,031 shares for both periods.
Reconciliation of Book Value per Common Share
June 30,
2021

As of period end:

Total AIG shareholders' equity

December 31,
2021

March 31,2022

June 30,2022$ 66,083$ 65,956$ 55,944$ 45,344

Less: Preferred equity

485

485

485

485

Total AIG common shareholders' equity (a)65,59865,47155,45944,859Less: Deferred tax assets (DTA)*

7,374

5,221

4,816

4,582

Less: Accumulated other comprehensive income (AOCI)

10,2096,687(5,900)(17,656)

Add: Cumulative unrealized gains and losses related to Fortitude Re Funds
withheld assets

3,341

2,791

48

(2,223)

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude
Re funds withheld assets

6,868

3,896

(5,948)(15,433)$ 51,356$ 56,354$ 56,591$ 55,710

Goodwill

4,083

4,056

4,009

3,935

Value of business acquired

121

111

107

99

Value of distribution channel acquired

477

458

448

438

Other intangibles

305

300

291

289

Total intangible assets

4,986

4,925

4,855

4,761

$ 46,370$ 51,429$ 51,736$ 50,949

854.9

818.7

800.2

771.3

Total adjusted common shareholders' equity (b)Less: Intangible assets:

Total adjusted tangible common shareholders' equity (c)Total common shares outstanding (d)As of period end:

June 30, % Inc.

December 31, % Inc.

March 31, % Inc.

June 30,%

2021
Book value per common share (a÷d)

2021(Dec.)

2022(Dec.)

2022(24.2) % $ 79.97(27.3) % $ 69.30(16.1) % $ 58.16

60.07

20.2

68.83

4.9

70.72

2.1

72.23

Adjusted tangible book value per common share (c÷d) 54.24

21.8

62.82

5.2

64.65

2.2

66.06

Adjusted book value per common share (b÷d)$ 76.73(Dec.)

Reconciliation of Return On Common Equity
Three Months Ended June 30,
2021

2022

Annualized net income (loss) attributable to AIG common shareholders (a)$ 364$ 12,112

Annualized adjusted after-tax income attributable to AIG common shareholders (b)$ 5,324$ 3,916

Average AIG Common Shareholders' equity (c)$ 63,896$ 50,159

Less: Average DTA*

7,457

4,699

Less: Average AOCI

8,338

(11,778)

Add: Average cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

2,794(1,088)Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

5,544(10,690)$ 50,895$ 56,150

Average adjusted common shareholders' equity (d)ROCE (a÷c)

0.6

%

24.1

%

Adjusted return on common equity (b÷d)

10.5

%

7.0

%

* 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 otherbalance sheet deferred tax assets and liabilities.
Reconciliation of Net Investment Income
Three Months Ended
June 30,Net Investment Income per Consolidated Statements of Operations

2021

2022

$ 3,675$ 2,604

Changes in fair value of securities used to hedge guaranteed living benefits (13)(13)

Changes in the fair value of equity securities

1330

Net investment income on Fortitude Re funds withheld assets

(507)

(188)

Net realized gains (losses) related to economic hedges and otherTotal Net Investment Income - APTI Basis

1471$ 3,182$ 2,504

Net Premiums Written - Change in Constant Dollar
Three Months Ended June 30, 2022
North

General Insurance

Global -Global -America

International -GeneralCommercial

Personal

Commercial

Commercial

Personal

Insurance

Lines

Insurance

Lines

Lines

Insurance

Foreign exchange effect on worldwide premiums:
premiums:
Change in net premiums written
Increase (decrease) in original currency

5

%8

% (4)

% 10

%5

% (4)

Foreign exchange effect

(5)

(3)

(7)

—

(6)

(9)

Increase (decrease) as reported in U.S. dollars—%5% (11)

% 10

% (1)

% (13)

Reconciliations of Accident Year Loss and Accident Year Combined Ratios, as Adjusted

Three Months Ended
June 30,
2018

2021

2022

Combined ratio

101.3

92.5

87.4

Catastrophe losses and reinstatement premiums

(2.3)

(2.1)

(1.8)

Prior year development, net of reinsurance and prior year premiums

0.8

0.7

2.9

Adjustments for ceded premium under reinsurance contracts and other 1.2——

Accident year combined ratio, as adjusted

91.1

88.5

Total General Insurance

North America

101.0

%

%

Combined ratio

93.7

86.3

Catastrophe losses and reinstatement premiums

(2.9)

(1.7)

Prior year development, net of reinsurance and prior year premiums

1.6

5.3

Accident year combined ratio, as adjusted

92.4

89.9

Combined ratio

93.0

83.6

Catastrophe losses and reinstatement premiums

(2.9)

(1.9)

Prior year development, net of reinsurance and prior year premiums

1.1

6.5

Accident year combined ratio, as adjusted

91.2

88.2

Combined ratio

98.1

102.3

Catastrophe losses and reinstatement premiums

(3.0)

(0.5)

Prior year development, net of reinsurance and prior year premiums

5.0

(2.1)

Accident year combined ratio, as adjusted

100.1

99.7

Combined ratio

91.8

88.5

Catastrophe losses and reinstatement premiums

(1.5)

(2.0)

Prior year development, net of reinsurance and prior year premiums

(0.1)

0.7

Accident year combined ratio, as adjusted

90.2

87.2

Combined ratio

88.7

82.4

Catastrophe losses and reinstatement premiums

(1.4)

(2.3)

Prior year development, net of reinsurance and prior year premiums

(0.4)

1.3

North America - Commercial Lines

North America - Personal Insurance

International

International - Commercial Lines

Accident year combined ratio, as adjusted

86.9

81.4

Loss ratio

55.2

56.4

Catastrophe losses and reinstatement premiums

(1.6)

(1.6)

Prior year development, net of reinsurance and prior year premiums

0.4

(0.1)

Accident year loss ratio, as adjusted

54.0

54.7

Combined ratio

95.2

96.9

Catastrophe losses and reinstatement premiums

(1.6)

(1.6)

Prior year development, net of reinsurance and prior year premiums

0.4

(0.1)

Accident year combined ratio, as adjusted

94.0

95.2

International - Personal Insurance

Global - Commercial Insurance
Combined ratio

104.5

91.1

83.1

Catastrophe losses and reinstatement premiums

(3.3)

(2.2)

(2.1)

Prior year development, net of reinsurance and prior year premiums

2.6

0.4

4.3

Adjustments for ceded premium under reinsurance contracts and other 2.3——

Accident year combined ratio, as adjusted

89.3

85.3

106.1

Reconciliation of General Insurance Return on Adjusted Segment Common Equity

Three Months Ended
June 30,

Adjusted pre-tax income
Interest expense on attributed financial debt

2021

2022

$ 1,194$ 1,257

147

149

Adjusted pre-tax income including attributed interest expense

1,047

1,108

Income tax expense

263

254

Adjusted after-tax income

784

854

Dividends declared on preferred stock33

Adjusted after-tax income attributable to common shareholders

$ 781

$ 851

Ending adjusted segment common equity$ 25,473$ 30,078

Average adjusted segment common equity$ 25,369$ 28,334

Return on adjusted segment common equity

12.3

Total segment shareholder’s equity

%

12.0

$ 26,308$ 25,574

Less: Preferred equity

197

210

Total segment common equity

26,111

25,364

Less: Accumulated other comprehensive income (AOCI)

849(5,214)

Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

211

(500)

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

638(4,714)$ 25,473$ 30,078

Total adjusted segment common equity
Reconciliations of Premiums and Deposits

Three Months Ended
June 30,
2021

2022

Individual Retirement:
Premiums

$ 32

$ 57

Deposits

3,949

3,566

Other

(3)

(3)

$ 3,978$ 3,620

Premiums and deposits%Group Retirement:
Premiums$ 4$ 5

Deposits

2,251

1,767

Other

—

—

$ 2,255$ 1,772

Premiums

$ 532

$ 561

Deposits

409

388

Other

220

208

$ 1,161$ 1,157

Premiums$ 1,077$ 496

Deposits

559

46

Other

5

8

$ 1,641$ 550

Premiums$ 1,645$ 1,119

Deposits

7,168

5,767

Other

222

213

$ 9,035$ 7,099

Premiums and depositsLife Insurance:

Premiums and deposits

Institutional Markets:

Premiums and deposits

Total Life and Retirement:

Premiums and deposits

Reconciliation of Life and Retirement Return on Adjusted Segment Common Equity

Three Months EndedJune 30,
2021

2022

$ 1,124$ 563

Interest expense on attributed financial debt

74

68

Adjusted pre-tax income including attributed interest expense

1,050

495

Income tax expense

211

95

Adjusted after-tax income

839

400

Dividends declared on preferred stock22

Adjusted after-tax income attributable to common shareholders

$ 837

$ 398

Ending adjusted segment common equity$ 20,689$ 20,537

Average adjusted segment common equity$ 20,458$ 20,891

Return on adjusted segment common equity

16.4

Adjusted pre-tax income

Total segment shareholder’s equity% 7.6$ 29,558$ 11,546

Less: Preferred equity

139

147

Total segment common equity

29,41911,399Less: Accumulated other comprehensive income (AOCI)

11,860(10,861)

Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

3,130(1,723)

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld assets 8,730(9,138)

Total adjusted segment common equity$ 20,689

View source version on businesswire.com: https://www.businesswire.com/news/home/20220808005558/en/
Quentin McMillan (Investors): quentin.mcmillan@aig.com
Claire Talcott (Media): claire.talcott@aig.com
Source: American International Group, Inc.

$ 20,537%