AIG Reports First Quarter 2022 Results
May 3, 2022
Significant progress on Life and Retirement separation from AIG, with key steps taken toward the establishmentof a standalone capital structure, public filing of the S-1 registration statement, Corebridge Financial, Inc.
(Corebridge) brand debut and strong independent additions to the Corebridge Board of Directors
Announced asset management relationship with BlackRock to manage up to $150 billion of liquid assets for AIG
and Corebridge
General Insurance combined ratio of 92.9% improved by 5.9 points from the prior year quarter
General Insurance adjusted* accident year combined ratio of 89.5% improved by 2.9 points from the prior year
quarter
Net income per diluted common share was $5.15 compared to $4.41 in the prior year quarter
Adjusted after-tax income* (AATI) per diluted common share increased 24% to $1.30 from $1.05 in the prior year
quarter, driven by a $373 million increase in General Insurance underwriting income
Repurchased $1.4 billion of AIG common stock in the first quarter of 2022
AIG Board of Directors increased the share repurchase authorization to $6.5 billion$9.1 billion of AIG Parent liquidity at March 31, 2022
FIRST QUARTER NOTEWORTHY ITEMSGeneral Insurance adjusted pre-tax income (APTI) of $1.2 billion reflects a $373 million increase in underwriting income
from the prior year quarter as a result of strong combined ratio improvement, including significantly lower catastrophe
losses (CATs), higher earned premiums along with continued rate improvement, focused risk selection and improved terms
and conditions.
Life and Retirement APTI of $724 million reflects lower net investment income due in large part to lower yieldenhancements, partially offset by slightly lower mortality compared to the prior year quarter; Life and Retirement return on
adjusted segment common equity* (Adjusted ROCE) for the first quarter was 10.0% on an annualized basis; premiums anddeposits* increased 13.5%, primarily driven by higher interest rates.
Return on common equity (ROCE) and Adjusted ROCE* were 28.1% and 7.6%, respectively, on an annualized basis forthe first quarter of 2021.
* 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)--May 3, 2022-- American International Group, Inc. (NYSE: AIG) today reported financial results for the first quarter
ended March 31, 2022.
AIG Chairman & Chief Executive Officer Peter Zaffino said: “In the first quarter of 2022, AIG delivered excellent results, while simultaneously
advancing a number of strategic, operational and financial priorities. I am very pleased with the progress we achieved, including meaningfulimprovement in underwriting profitability in General Insurance, continued solid performance from Life and Retirement, significant progress on theseparation of Life and Retirement from AIG, along with accelerated capital management actions.
“General Insurance continues to generate top line growth while driving sustainable underwriting improvement and expense discipline in both the
combined ratio and the adjusted accident year combined ratio, which improved 590 and 290 basis points, respectively, year over year to 92.9% and89.5%. We are compounding margin improvement over a multi-year period having improved the combined ratio and adjusted accident year combined
ratio by 860 and 600 basis points over the prior two years.
“Commercial net premiums written grew 8% on a constant dollar basis with 10% foreign exchange adjusted growth in International and 6% in North
America. Growth across Global Commercial Lines benefitted from over $1 billion of new business for the fourth consecutive quarter, strong retention of
86% globally and 9% rate increases (10% excluding workers’ compensation), which continue to exceed loss cost trends.
“Life and Retirement’s diversified business withstood significant market volatility and reported an adjusted segment return on common equity of 10.0%.
Premiums and deposits increased 13.5%, driven by strong fixed annuity sales that benefitted from the added origination capabilities from our strategic
partnership with Blackstone.
“Additionally, we made significant progress since the beginning of the year to prepare the Life and Retirement business to be a standalone, publiccompany. We publicly filed an S-1 registration statement with the U.S. Securities and Exchange Commission, we executed a $6.5 billion senior notes
offering by Life and Retirement helping to establish the target standalone capital structure and we announced an arrangement with BlackRock relating
to the management of up to an aggregate of $150 billion of liquid assets for AIG and Life and Retirement.

“Given our strong balance sheet and liquidity, the AIG Board of Directors increased the share repurchase authorization to $6.5 billion of AIG Common
Stock, inclusive of any remaining amounts under the prior authorization. In the first quarter, we returned $1.7 billion to shareholders through $1.4 billionof AIG common stock repurchases and $265 million of dividends, and we ended the quarter with $9.1 billion of parent liquidity.
“We also announced a commitment to achieve net zero greenhouse gas emissions across our global underwriting and investment portfolios by 2050,
or sooner. We believe our ESG commitments are an important step forward for AIG, the clients we serve and the global communities where we live
and work.
“I am extremely proud of the outstanding work from our global colleagues and the value we continue to deliver for our clients, distribution partners,
shareholders and other stakeholders as we continue our journey to be a top performing company.”
For the first quarter of 2022, pre-tax income from continuing operations was $5.8 billion compared to pre-tax income from continuing operations of $4.7
billion in the prior year quarter. First quarter of 2022 net income attributable to AIG common shareholders was $4.3 billion, or $5.15 per diluted
common share, compared to net income of $3.9 billion, or $4.41 per diluted common share, in the prior year quarter. The pre-tax income increase wasprimarily due to an increase in net realized gains, including a $936 million increase in net realized gains on Fortitude Re funds withheld embedded
derivative, and overall strong General Insurance underwriting results, including higher premiums and lower CATs, partially offset by lower net
investment income across the portfolio. The pre-tax increase was partially offset by a higher proportion of income attributable to noncontrolling interest
as a result of the sale to Blackstone of a 9.9% interest in Corebridge and higher income tax expense primarily due to higher income from operations.
AATI was $1.1 billion, or $1.30 per diluted common share, for the first quarter of 2022 compared to $923 million, or $1.05 per diluted common share, inthe prior year quarter. The increase was primarily due to strong General Insurance underwriting results, partially offset by lower net investment income
across the portfolio.
Total consolidated net investment income for the first quarter of 2022 was $3.2 billion, down 11% from $3.7 billion in the prior year quarter, primarily
due to lower call and tender income, lower returns from fair value option equity and fixed maturity securities and lower income from hedge funds,
partially offset by higher returns on other alternative investments principally from private equity. Total net investment income on an APTI basis* was$3.0 billion, a decrease of $193 million compared to the prior year quarter, reflecting lower call and tender income, lower returns from fair value option
fixed maturity securities partially offset by higher returns on alternative investments principally from private equity.
Book value per common share was $69.30 as of March 31, 2022, a decrease of 13% from December 31, 2021 and 4% from March 31, 2021, reflecting
a reduction in accumulated other comprehensive income (AOCI). Adjusted book value per common share* was $70.72, an increase of 3% from
December 31, 2021 and 20% from March 31, 2022 reflecting growth in retained earnings from net income in excess of dividends and share
repurchases. Adjusted tangible book value per common share was $64.65, an increase of 3% from December 31, 2021 and 22% from March 31,
2021.
For the first quarter of 2022, AIG repurchased approximately $1.4 billion of common stock or approximately 23 million shares of AIG common stock
and paid $265 million of common and preferred dividends, resulting in AIG Parent liquidity of $9.1 billion as of March 31, 2022, down $1.6 billion from
December 31, 2021. On May 3, 2022, the Board of Directors authorized share repurchases of $6.5 billion of AIG Common Stock, inclusive of theapproximately $1.5 billion of expected remaining authorization upon expiration of AIG’s current Exchange Act 10b5-1 repurchase plan on May 20,
2022. AIG’s total debt and preferred stock to total capital leverage at March 31, 2022 was 27.8%, up from 24.6% at December 31, 2021, principally
due to the reduction 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 June 30, 2022 to stockholders of record at the close of business on June 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 $0.365625 per depositary share. The dividend is payable on
June 15, 2022 to holders of record at the close of business on May 31, 2022.
FINANCIAL SUMMARY
Three Months Ended
March 31,($ in millions, except per common share amounts)

2021

2022

Net income attributable to AIG common shareholders $ 3,869 $ 4,253
Net income per diluted share attributable to
AIG common shareholders$ 4.41$ 5.15Adjusted pre-tax income (loss)$ 1,256 $ 1,514

General Insurance

845

1,211

Life and Retirement

941

724

Other Operations

(530)

(421)

Net investment income
Net investment income, APTI basis$ 3,657 $ 3,237
3,191

2,998

Adjusted after-tax income attributable to AIG commonshareholders$ 923$ 1,074$ 1.05$ 1.30- diluted (in millions)

876.3

826.0

Return on common equity

24.2% 28.1%

Adjusted return on common equity

7.4

% 7.6

%

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

Weighted average common shares outstanding

Book value per common share$ 72.37 $ 69.30

Adjusted book value per common share$ 58.69 $ 70.72

Common shares outstanding (in millions)

859.4

800.2

The comparisons on the following pages are against the first quarter of 2021, unless otherwise indicated. Refer to the AIG First Quarter 2022 Financial
Supplement, which is posted on AIG's website in the Investors section, for further information.
GENERAL INSURANCE
Three Months Ended March 31,($ in millions)
Gross premiums written

2021

2022

$ 10,731$ 11,512

Change7%

Net premiums written$ 6,479$ 6,633

2

North America

2,930

3,151

8

North America Commercial Lines

2,787

2,952

6

North America Personal Insurance

143

199

39

International

3,549

3,482

(2)

International Commercial Lines

1,982

2,085

5

International Personal Insurance

1,567

1,397

(11)

Underwriting income (loss)

$ 73

$ 446

NM

%

%

North America

(202)

256

NM

North America Commercial Lines

(136)

267

NM

North America Personal Insurance

(66)

(11)

83

International

275

190

(31)

International Commercial Lines

186

125

(33)

International Personal Insurance

89

65

(27)

Net investment income, APTI basis

$ 772

$ 765

(1)

%

Adjusted pre-tax income$ 845$ 1,211

43

%

12.3

% 3.8

pts

Return on adjusted segment common equity

8.5%

Underwriting ratios:
North America Combined Ratio (CR)

108.4

90.8

(17.6)

North America Commercial Lines CR

106.7

88.8

(17.9)

North America Personal Insurance CR

118.8

102.6

(16.2)

International CR

92.2

94.5

2.3

International Commercial Lines CR

90.0

93.6

3.6

pts

International Personal Insurance CR

94.6

95.7

1.1

General Insurance (GI) CR

98.8

92.9

(5.9)

GI Loss ratio

65.6

60.9

(4.7)

(7.3)

(4.5)

2.8

0.9

1.1

0.2

GI Accident year loss ratio, as adjusted

59.2

57.5

(1.7)

GI Expense ratio

33.2

32.0

(1.2)

GI Accident year combined ratio, as adjusted (AYCR)

92.4

89.5

(2.9)

North America AYCR

95.6

90.6

(5.0)

North America Commercial Lines AYCR

93.9

88.1

(5.8)

North America Personal Insurance AYCR

105.9

105.2

(0.7)

International AYCR

90.2

88.6

(1.6)

International Commercial Lines AYCR

86.8

83.5

(3.3)

International Personal Insurance AYCR

94.0

95.2

1.2

pts

Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of reinsurance and prior year
premiums

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

General Insurance

Net premiums written in the first quarter of 2022 increased 2% from the prior year quarter (5% on a constant dollar basis)
to $6.6 billion driven by strong North America Commercial Lines and International Commercial Lines growth of 6% and 5%(6% and 10% on a constant dollar basis), respectively, reflecting continued positive rate change, higher renewal retentions
and strong new business production. Additionally, North America Personal Insurance net premiums written growth of 39%
reflects growth particularly within our Travel business, driven by more robust demand in travel. International Personal
Insurance net premiums written decreased 11% (down 5% on a constant dollar basis) compared to the prior year quarter,
primarily due to lower production in Warranty, partially offset by growth in Travel and Personal Accident & Health due to arebound in travel activity.
First quarter 2022 APTI increased by $366 million to $1.2 billion from the prior year quarter due to significantly improved
underwriting results. Underwriting income was $446 million in the first quarter of 2021, compared to $73 million in the prioryear quarter. The underwriting income included $274 million of CATs, predominantly from Australian floods, compared to$422 million in the prior year quarter. First quarter 2022 also included favorable net prior year loss reserve development,
net of reinsurance (PYD) of $93 million compared to favorable PYD of $56 million in the prior year quarter.
General Insurance generated strong underwriting results, with a combined ratio of 92.9, a 5.9 point improvement from 98.8
in the prior year quarter. The loss ratio improved by 4.7 points, driven by strong underwriting results including significantly
lower CATs, and the expense ratio improved 1.2 points, resulting from continued general expense discipline. The General
Insurance accident year combined ratio, as adjusted, was 89.5, an improvement of 2.9 points from the prior year quarterand was comprised of a 57.5 accident year loss ratio, as adjusted*, and an expense ratio of 32.0. The General Insurance
accident year loss ratio, as adjusted, improved by 1.7 points from the prior year quarter, reflecting continued improvement
in commercial business mix and quality of the portfolio.
Commercial Lines underwriting results continued to show strong improvement due to enhanced business mix, and net
premiums written grew 6% with continued rate increases. The accident year combined ratio, as adjusted, for North America
Commercial Lines improved 5.8 points to 88.1, and for International Commercial Lines improved 3.3 points to 83.5
compared to the prior year quarter.
Personal Insurance underwriting results improved, although the accident year combined ratio deteriorated slightly, 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 0.7 points to 105.2 compared to the prior year quarter, reflectingchanges in business mix and a rebound in travel premiums. The International Personal Insurance accident year combined
ratio, as adjusted, deteriorated by 1.2 points to 95.2 from the prior year quarter.

LIFE AND RETIREMENT
Three Months Ended
March 31,($ in millions, except as indicated)

2021

2022

$ 941

$ 724

(23)

Individual Retirement

532

384

(28)

Group Retirement

307

225

(27)

Life Insurance

(40)

(9)

78

Institutional Markets

142

124

(13)

Premiums and fees

$ 1,383$ 1,60316

Individual Retirement

257

279

9

Group Retirement

128

132

3

Life Insurance

912

907

(1)

Institutional Markets

86

285

231

$ 6,402$ 7,265

13

Adjusted pre-tax income (loss)

Premiums and deposits

Change%%%Individual Retirement

3,373

3,881

15

Group Retirement

1,818

1,888

4

Life Insurance

1,131

1,169

3

Institutional Markets

80

327

309

$ 55

NM

Net flows$ (1,467)%

Individual Retirement*

(574)

874

NM

Group Retirement

(893)

(819)

8

$ 2,353$ 2,129

(10)

%

(4.2)

pts

Net investment income, APTI basis
Return on adjusted segment common equity

14.2

%

10.0

%

* In 2021 includes $0.6 billion of net outflows from Retail Mutual Funds that were, (i) transferred or liquidated in the third quarter of 2021.
Life and Retirement

Life and Retirement reported APTI of $724 million for the first quarter of 2022, down 23% from $941 million in the prioryear quarter, primarily due to lower yield enhancements across all segments, as well as the sale of the affordable housing
portfolio. The decline in equity markets drove higher deferred policy acquisition costs amortization and lower fee income
predominantly in our Individual Retirement and Group Retirement businesses. The adverse mortality in Life Insurance is inline with our previously disclosed estimate of exposure sensitivity of $65 million to $75 million per 100,000 population
deaths remains consistent based on the reported first quarter COVID-related deaths in the United States.
Premiums and deposits for the first quarter of 2022 were $7.3 billion, up $0.9 billion versus the prior year quarter, primarily
driven by improved fixed annuity sales. Net flows improved in the first quarter of 2022 compared to the same period in theprior year.
OTHER OPERATIONS
Three Months Ended
March 31,($ in millions)

2021

2022

Corporate and Other$ (552) $ (547) 1

Asset Management

198

259

31

Adjusted pre-tax loss before consolidation and eliminations

(354

)

(288

) 19

Consolidation and eliminations

(176

)

(133

) 24

) $ (421) 21

Adjusted pre-tax loss
Other Operations$ (530Change%%First quarter adjusted pre-tax loss (APTL) was $421 million, including $133million of reductions from consolidation andeliminations, compared to APTL of $530 million, including $176 million of reductions from consolidation and eliminations, inthe prior year quarter. The improvement in consolidation and eliminations APTL reflects the elimination of the General
Insurance and Life and Retirement segment net investment income on their investment in consolidated investment entities.
Before consolidation and eliminations, the improvement in APTL reflects higher net investment income, primarily from gains
from property sales in the global real estate portfolio, and lower corporate interest expense resulting from debt repayment
activity.
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 SAFG Retirement Services, Inc. (SAFG), which is the holding company for AIG’s Life and Retirementbusiness, for $2.2 billion in an all cash transaction, subject to adjustment if the final pro forma adjusted book value isgreater or lesser than the target pro forma adjusted book value. This resulted in a $629 million decrease to AIG’sshareholders’ equity in the fourth quarter of 2021. As part of the separation, most of AIG’s investment operations weretransferred to SAFG or its subsidiaries as of December 31, 2021, and AIG entered into a long-term asset management
relationship with Blackstone to manage an initial $50 billion of Life and Retirement’s existing investment portfolio beginningin the fourth quarter of 2021, with that amount increasing by increments of $8.5 billion per year for the five years beginningin the fourth quarter of 2022, for an aggregate of $92.5 billion. On November 1, 2021, SAFG declared a dividend payable
to AIG Parent in the amount of $8.3 billion. In connection with such dividend, SAFG 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 initial public offering (IPO) of
SAFG. On April 5, 2022, SAFG issued $6.5 billion aggregate principal amount of senior unsecured notes, the proceeds ofwhich were used to repay a portion of the $8.3 billion promissory note previously issued by SAFG to AIG. While wecurrently believe the IPO is the next step in the separation of 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 thata separation will in fact occur. Any separation transaction will be subject to the satisfaction of various conditions andapprovals, 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 (SEC).
Additionally, on December 15, 2021, AIG and Blackstone Real Estate Income Trust (BREIT), a long-term, perpetual capitalvehicle affiliated with Blackstone, completed the acquisition by BREIT of AIG’s interests in a U.S. affordable housing
portfolio for $4.9 billion, in an all cash transaction, resulting in a pre-tax gain of $3.0 billion. The historical results of the
U.S. affordable housing portfolio were reported in our Life and Retirement operating segments.
Additionally, on March 28, 2022, AIG announced that it plans to rebrand SAFG 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 of assets onbehalf of AIG and up to $90 billion of assets on behalf of AIG’s Life and Retirement business; AIG and AIG’s Life andRetirement business will 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, Wednesday, May 4, 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 from the effects of 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 theconflict 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;
the effects of sanctions related to the conflict between Russia and Ukraine and failure to comply therewith;
the impact of potential information technology, cybersecurity or data security breaches, including as a result of supply chain
disruptions, cyber-attacks or security vulnerabilities, the likelihood of which may increase due to extended remote business
operations as a result of COVID-19;
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;
availability of reinsurance or access to reinsurance on acceptable terms;
the effectiveness of strategies to recruit and retain key personnel and to implement effective succession plans;concentrations in AIG’s investment portfolios, including as a result of our asset management relationships with Blackstone
and BlackRock;disruptions in the availability of AIG’s electronic data systems or those of third parties;changes to the valuation of AIG’s investments;
actions by rating agencies with respect to AIG’s credit and financial strength ratings as well as those of its businesses andsubsidiaries;
the impact of COVID-19 and its variants and responses thereto;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;changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill;
AIG’s ability to effectively execute on environmental, social and governance targets and standards;
the requirements, which may change from time to time, of the global regulatory framework to which AIG is subject;
nonperformance or defaults by counterparties, including Fortitude Reinsurance Company Ltd. (Fortitude Re);
AIG’s ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired
businesses;changes in judgments or assumptions concerning insurance underwriting and insurance liabilities;changes to our sources of or access to liquidity;
significant legal, regulatory or governmental proceedings; andsuch other factors discussed in Part I, Item 2. Management’s Discussion and Analysis ofFinancial Condition and Results of Operations (MD&A) in AIG’s Quarterly Report on Form 10-Q for the quarterly period
ended March 31, 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 for the 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 (and expressly disclaims any obligation) to update or alter any projections, goals, assumptions or otherstatements, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise. Additional
information as to factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements isdisclosed 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 First 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) and 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:(a) Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned (NPE)(b) Acquisition ratio = Total acquisition expenses ÷ NPE(c) General operating expense ratio = General operating expenses ÷ NPE(d) Expense ratio = Acquisition ratio + General operating expense ratio(e) Combined ratio = Loss ratio + Expense ratio(f)CATs and reinstatement premiums = [Loss and loss adjustment expenses incurred – (CATs)] ÷ [NPE +/(-) Reinstatement premiums related tocatastrophes] – Loss ratio

Accident year loss ratio, as adjusted (AYLR ex-CAT) = [Loss and loss adjustment expenses incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement(g) premiums related to catastrophes +/(-) Prior year premiums + Adjustment for ceded premium under reinsurance contracts related to prioraccident years](h) Accident year combined ratio, as adjusted (AYCR ex-CAT) = AYLR ex-CAT + Expense ratio(i)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 and reinstatement 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 March 31,
2021

2022
Noncontrolling

Noncontrolling

Pre-tax

Tax
EffectInterests(d)After-tax Pre-tax

Tax
EffectInterests(d)After-tax$ 4,728

$ 798

$ -

$ 3,930$ 1,179$ -$ 4,656

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

-

-

(54

)

(54

Pre-tax income/net income attributable to AIG

4,728

798

(54

)

3,876

$ 5,835
)

-

-

(396

)

(396

5,835

1,179

(396

)

4,260

Dividends on preferred stock

7

7

Net income attributable to AIG commonshareholders

3,869

4,253

)

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

-

901

-

(901

Deferred income tax valuation allowance (releases)
charges(b)-(686 )-

686

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

(22

(5

-

(17

)

)

)

)

-

91

-

(91

)

-

6

-

(6

)

-

(10

)

(13

)

(3

)

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

203

43

-

160

Changes in the fair value of equity securities

(22

)

(5

Gain on extinguishment of debt

(8

)

(2

Net investment income on Fortitude Re funds withheld
assets(486

Net realized gains on Fortitude Re funds withheld
assets

(173

273

57

-

216

)

-

(17

)

27

6

-

21

)

-

(6

)

-

-

-

-

)

(102 )

-

(384

)

(291

-

(230

)

(36

)

-

(137

)

140

29

-

111

)

(61

)

)

Net realized (gains) losses on Fortitude Re funds
withheld
embedded derivative(2,382 )(499 )-(1,883 )(3,318 )

(697

)

-

(2,621 )Net realized gains(c)

(627

)

(145 )-(482)(1,188 )

(281

)

-

(907

)

Net gain on divestitures

(7

)

(1

-

(6

)

(40

)

(9

)

-

(31

)

Non-operating litigation reserves and settlements

-

-

-

(34

)

(7

)

-

(27

)

-

-

-

(15

)

-

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

(19

)

(4

)

-

(15

)

-

Net loss reserve discount benefit

(32

)

(7

)

-

(25

)

(20

-

)

(5

)

Integration and transaction costs associated withacquiring ordivesting businesses

9

2

-

7

46

10

-

36

Restructuring and other costs

74

16

-

58

93

19

-

74

Non-recurring costs related to regulatory or
accounting changes

20

4

-

16

4

1

-

3

Noncontrolling interests(d)

-

-

-

-

-

-

298

298

$ 272

$ (54

Adjusted pre-tax income/Adjusted after-tax
income attributable
to AIG common shareholders$ 1,256)$ 923$ 1,514

$ 335

$ (98

)

$ 1,074(a) Three months ended March 31, 2021 includes the completion of audit activity by the Internal Revenue Service.
(b) Three months ended March 31, 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 months ended March 31, 2022, noncontrolling interests include Blackstone’s 9.9 percent equity stake in Corebridge.
American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per common share data)

Summary of Key Financial Metrics
Three Months Ended March 31,
Earnings per common share:

2021

2022 % Inc. (Dec.)

Basic
Income from continuing operations
Income from discontinued operations$ 4.45 $ 5.21 17.1
-

-

%

NM

Net income attributable to AIG common shareholders $ 4.45 $ 5.21 17.1

DilutedIncome from continuing operations
Income from discontinued operations$ 4.41 $ 5.15 16.8
-

-

NM

Net income attributable to AIG common shareholders $ 4.41 $ 5.15 16.8

Adjusted after-tax income attributable to AIG commonshareholders per diluted share$ 1.05 $ 1.30 23.8

Weighted average shares outstanding:
Basic

868.1

816.3

Diluted

876.3

826.0

Reconciliation of Book Value per Common Share%As of period end:

March 31, 2021 December 31, 2021 March 31, 2022

Total AIG shareholders' equity$ 62,679$ 65,956$ 55,944

Less: Preferred equity

485

485

485

Total AIG common shareholders' equity (a)62,19465,47155,459Less: Deferred tax assets (DTA)*

7,539

5,221

4,816

Less: Accumulated other comprehensive income (AOCI)

6,466

6,687

(5,900

2,246

2,791

48

4,220

3,896

(5,948$ 50,435$ 56,354$ 56,591

Goodwill

4,079

4,056

4,009

Value of business acquired

123

111

107

Value of distribution channel acquired

487

458

448

Other intangibles

309

300

291

Total intangible assets

4,998

4,925

4,855

$ 45,437$ 51,429$ 51,736

859.4

818.7

800.2

)

Add: Cumulative unrealized gains and losses related to Fortitude Re
Funds Withheld Assets
Subtotal: AOCI plus cumulative unrealized gains and losses
related to Fortitude Re funds withheld assets
Total adjusted AIG common shareholders' equity (b)Less: Intangible assets:

Total adjusted tangible common shareholders' equity (c)Total common shares outstanding (d)March 31, % Inc.

December 31, % Inc.

March 31,

As of period end:

2021

(Dec.)

2021

2022

Book value per common share (a÷d)$ 72.37(4.2 ) % $ 79.97(13.3 ) % $ 69.30(Dec.)

Adjusted book value per common share (b÷d)

58.69

20.5

68.83

2.7

70.72

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

52.87

22.3

62.82

2.9

64.65

Reconciliation of Return On Common Equity)

Three Months Ended March 31,
2021

2022

Actual or Annualized net income attributable to AIG common shareholders (a)$ 15,476$ 17,012

Actual or Annualized adjusted after-tax income attributable to AIG common shareholders (b)$ 3,692$ 4,296

Average AIG common shareholders' equity (c)$ 64,036$ 60,465

Less: Average DTA*

7,723

5,019

Less: Average AOCI

9,989

394

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

3,452

1,420

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

6,537(1,026$ 49,776$ 56,472

Average adjusted common shareholders' equity (d))

ROCE (a÷c)

24.2

%

28.1

%

Adjusted return on common equity (b÷d)

7.4

%

7.6

%

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

Reconciliation of Net Investment Income

Three Months Ended
March 31,
2021

2022

Net investment income per Consolidated Statements of Operations$ 3,657$ 3,237

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

(19

)

(14

Changes in the fair value of equity securities

(22

)

27

Net investment income on Fortitude Re funds withheld assets

(486

)

(291

)

)

Net realized gains (losses) related to economic hedges and otherTotal Net investment income - APTI Basis

61

39$ 3,191$ 2,998

Net Premiums Written - Change in Constant Dollar

Three Months Ended March 31, 2022
North
Global -International America

GeneralCommercial Commercial Commercial Personal

General Insurance
Insurance Lines

Lines

Lines

6

10

Insurance

Foreign exchange effect on worldwide
premiums:
Change in net premiums written
Increase (decrease) in original currency 5
Foreign exchange effect

%

(3)

8

%

(2)

%

-

%

(5)

(5)

%

(6)

Increase (decrease) as reported in
U.S. dollars

2

%

6

%

6

%

5

%

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

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

Three Months Ended
March 31,
2020

2021

2022

101.5

98.8

92.9

Total General Insurance
Combined ratio

(11)

%

Catastrophe losses and reinstatement premiums(6.9) (7.3) (4.5

Prior year development, net of reinsurance and prior year premiums

0.9

0.9

1.1

Accident year combined ratio, as adjusted

95.5

92.4

89.5

Combined ratio

108.4

90.8

Catastrophe losses and reinstatement premiums(15.2 ) (2.1

Prior year development, net of reinsurance and prior year premiums

2.4

1.9

Accident year combined ratio, as adjusted

95.6

90.6

Combined ratio

106.7

88.8

Catastrophe losses and reinstatement premiums(15.4 ) (2.4

Prior year development, net of reinsurance and prior year premiums

2.6

1.7

Accident year combined ratio, as adjusted

93.9

88.1

Combined ratio

118.8

102.6

Catastrophe losses and reinstatement premiums(14.5 ) (0.7

Prior year development, net of reinsurance and prior year premiums

1.6

3.3

Accident year combined ratio, as adjusted

105.9

105.2

Combined ratio

92.2

94.5

Catastrophe losses and reinstatement premiums(1.9) (6.4

Prior year development, net of reinsurance and prior year premiums

(0.1

) 0.5

Accident year combined ratio, as adjusted

90.2

88.6

)

North America)

North America - Commercial Lines)

North America - Personal Insurance)

International)

International - Commercial Lines
Combined ratio

90.0

93.6

Catastrophe losses and reinstatement premiums(3.2) (9.9)Prior year development, net of reinsurance and prior year premiums

-

(0.2

)

Accident year combined ratio, as adjusted

86.8

83.5

Loss ratio

54.7

55.0

Catastrophe losses and reinstatement premiums(0.4) (1.8

Prior year development, net of reinsurance and prior year premiums

(0.2

) 1.3

Accident year loss ratio, as adjusted

54.1

54.5

Combined ratio

94.6

95.7

Catastrophe losses and reinstatement premiums(0.4) (1.8

Prior year development, net of reinsurance and prior year premiums

(0.2

) 1.3

Accident year combined ratio, as adjusted

94.0

95.2

International - Personal Insurance))

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

Reconciliation of General Insurance Return on Adjusted Segment Common Equity

Three Months Ended
March 31,
2021

2022

Adjusted pre-tax income$ 845$ 1,211

Interest expense on attributed financial debt

145

148

Adjusted pre-tax income including attributed interest expense

700

1,063

Income tax expense

161

246

Adjusted after-tax income

539

817

Dividends declared on preferred stock33

Adjusted after-tax income attributable to common shareholders

$ 536

$ 814

Ending adjusted segment common equity$ 25,265$ 26,590

Average adjusted segment common equity$ 25,155$ 26,510

Return on adjusted segment common equity

8.5

Total segment shareholder’s equity

%

12.3

%

$ 26,039$ 24,525

Less: Preferred equity

196

206

Total segment common equity

25,84324,319Less: Accumulated other comprehensive income (AOCI)

728(2,478 )Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

150

(207

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld assets 578
Total adjusted segment common equity$ 25,265)(2,271 )$ 26,590

Reconciliation of Life and Retirement Return on Adjusted Segment Common Equity

Three Months Ended
March 31,

Adjusted pre-tax income

2021

2022

$ 941

$ 724

Interest expense on attributed financial debt

70

73

Adjusted pre-tax income including attributed interest expense

871

651

Income tax expense

172

129

Adjusted after-tax income

699

522

Dividends declared on preferred stock22

Adjusted after-tax income attributable to common shareholders

$ 697

$ 520

Ending adjusted segment common equity$ 20,226$ 21,245

Average adjusted segment common equity$ 19,699$ 20,885

Return on adjusted segment common equity

14.2

Total segment shareholder’s equity

%

10.0

$ 26,568$ 20,446

Less: Preferred equity

136

143

Total segment common equity

26,432

20,303

Less: Accumulated other comprehensive income (AOCI)

8,366

(687

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

2,160

255

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld assets 6,206(942

Total adjusted segment common equity$ 20,226

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

Reconciliations of Premiums and Deposits

Three Months Ended
March 31,
2021

2022

$ 21,245%))

Individual Retirement:
Premiums$ 25

Deposits

3,349

Other

(1

Total premiums and deposits

$ 55
3,830
)

(4

$ 3,373$ 3,881$ 4$ 8Group Retirement:
Premiums
Deposits

1,814

1,880

Other

-

-

$ 1,818$ 1,888

Premiums

$ 532

$ 539

Deposits

397

397

Other

202

233

$ 1,131$ 1,169

Premiums

$ 39

$ 238

Deposits

34

82

Other

7

7

$ 80

$ 327

$ 600

$ 840

Total premiums and depositsLife Insurance:

Total premiums and deposits

Institutional Markets:

Total premiums and deposits

Total Life and Retirement:
Premiums
Deposits

5,594

6,189

)

Other208

236

Total premiums and deposits

6,402$ 7,265

View source version on businesswire.com: https://www.businesswire.com/news/home/20220503006009/en/
Quentin McMillan (Investors): quentin.mcmillan@aig.com
Claire Talcott (Media): claire.talcott@aig.com
Source: American International Group, Inc.