AIG Reports Second Quarter 2023 Results
August 1, 2023 at 4:16 PM EDT
Net income per diluted common share was $2.03, compared to $3.43 in the prior year quarter, and adjusted
after-tax income attributable to AIG common shareholders* (AATI) per diluted common share was $1.75, thehighest quarterly adjusted earnings per share* (EPS) for AIG since 2007, compared to $1.39 in the prior year
quarter
General Insurance net premiums written (NPW) grew 10% and Commercial Lines NPW grew 14% year-over-year, or
11% and 13%, respectively, on a constant dollar basis and adjusted for the International lag elimination*
General Insurance combined ratio was 90.9% and accident year combined ratio, as adjusted* (AYCR) was 88.0%,
representing the best second quarter AYCR since 2007
Life and Retirement adjusted pre-tax income (APTI) was $991 million, up 33% from the prior year quarter,
benefiting from strong growth in base investment yield. Premiums were $2.5 billion, up 128% from the prior year
quarter, and premiums and deposits* were $10.1 billion, up 42% from the prior year quarter supported by record
Fixed Index Annuity sales
AIG repurchased $554 million of common stock in the second quarter and paid $268 million in dividends,
reflecting a 12.5% increase in the quarterly common stock dividend
Announced the sale of Validus Reinsurance, Ltd. (Validus Re) to RenaissanceRe Holdings Ltd. (RenaissanceRe)for approximately $2.74 billion in cash and $250 million in RenaissanceRe common stock, representing anothersignificant milestone in AIG’s strategic repositioning of its global portfolio, reducing overall volatility and creating
capital efficiencies
Successfully executed a secondary offering of Corebridge Financial common stock; following Corebridge
Financial share repurchases, AIG ownership reduced to 65.3%
In early July, closed sale of Crop Risk Services for approximately $240 million in cash and completed theformation of Private Client Select with Stone Point Capital LLC to serve as a managing general agent for the highand ultra-high net worth personal lines business
On August 1, AIG Board of Directors increased share repurchase authorization to $7.5 billion
SECOND QUARTER 2023 NOTEWORTHY ITEMSGeneral Insurance APTI increased $62 million from the prior year quarter to $1.3 billion, driven by higher investment
income, partially offset by lower underwriting income due to higher catastrophe losses and lower favorable prior year
development, net of reinsurance and prior year premiums.
Life and Retirement APTI increased $244 million from the prior year quarter to $991 million, primarily due to higher baseportfolio spread income, partially offset by lower alternative investment income and lower fee income.
Net income attributable to AIG common shareholders was $1.5 billion, compared to $2.7 billion in the prior year quarter, or$2.03 compared to $3.43 per diluted common share.
AATI was $1.3 billion, compared to $1.1 billion in the prior year quarter, or $1.75 compared to $1.39 per diluted commonshare, primarily due to higher Life and Retirement results and a 9% reduction in weighted average diluted shares
outstanding.
Return on common equity (ROCE) was 14.0% and adjusted ROCE* was 9.4% on an annualized basis. Adjusted ROCE for
both General Insurance and Life and Retirement was 12.2%.
* 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. 1, 2023-- American International Group, Inc. (NYSE: AIG) today reported financial results for the second
quarter ended June 30, 2023.
AIG Chairman & Chief Executive Officer Peter Zaffino said: “In the second quarter, we continued to build on our momentum, delivering outstanding
financial results as well as successfully executing on multiple strategic priorities. Second quarter adjusted after-tax income attributable to AIG commonshareholders per diluted common share was $1.75, AIG’s highest adjusted EPS since 2007, representing another significant milestone on our path
toward sustainable earnings growth over the long-term.
“Our ability to continue to grow, manage volatility and improve profitability reflects our commitment to underwriting and operational excellence. In
addition to our strong financial performance, our team executed on several transactions that will simplify AIG, reduce volatility, generate liquidity andcapital efficiencies, and allow us to accelerate our capital management plans.

“In General Insurance, continued accident year underwriting margin improvement and strong growth resulted in yet another quarter of excellent
financial results. Net premiums written increased 11%† year-over-year and Commercial Lines net premiums written grew 13%† driven by strong
growth in North America Commercial Lines of 18%†. North America Commercial rate increased 8% or 9% excluding Workers’ Compensation while
International Commercial rate increased 9%.
“The General Insurance combined ratio was 90.9%, inclusive of $250 million of catastrophe losses, or 3.9 loss ratio points, a tremendous result
against the backdrop of a very challenging quarter for the industry. The second quarter accident year combined ratio, ex-CAT, was 88.0% and thelowest ratio recorded for the second quarter since 2007. This ratio improved by 50 basis points year-over-year and was driven by an excellent Global
Commercial accident year combined ratio, ex-CAT, of 84.4%.
“Life & Retirement delivered very good results, with premiums and deposits of over $10 billion, a 42% increase year-over-year, benefiting from record
sales in Fixed Index Annuities. Results included strong continued base net investment spread expansion.
“With respect to capital management, we continued to execute against our balanced strategy. In the second quarter, we increased our quarterlycommon stock dividend by 12.5% to $0.36 per share, representing the first increase since 2016 and we returned $822 million to shareholders through$554 million of AIG common stock repurchases and $268 million of dividends.
“In May, we announced the sale of Validus Re to RenaissanceRe for $3 billion, which is expected to close in the fourth quarter of 2023. In addition, we
announced and successfully completed the sale of AIG’s Crop Risk Services business to American Financial Group, Inc. for approximately $240
million. We also launched Private Client Select as a Managing General Agency with our partner Stone Point Capital LLC that will serve as anindependent platform for the high and ultra-high net worth markets.
“In June, we completed a secondary offering of Corebridge Financial common stock. Furthermore, Corebridge issued a $400 million special dividend
to its shareholders and executed the repurchase of $200 million of common stock from AIG and Blackstone. Including approximately $600 million in
regular dividends, these actions resulted in approximately $1.2 billion of total capital returned to Corebridge shareholders since its initial public offeringin September 2022. As a result of these actions, AIG received gross proceeds of approximately $1.7 billion and reduced its ownership in Corebridge to65.3%.
“The scale of what AIG colleagues accomplished in the second quarter is extraordinary. I am more confident than ever in AIG’s promising future as we
continue our journey to be a top performing company delivering excellence in all that we do and creating sustainable long-term value for our
stakeholders.”† On a constant dollar basis for North America and on a constant dollar basis and adjusted for the International lag elimination for International. These
measures are not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures andreconciliations to their closest GAAP measures can be found in this news release under the heading Comment on Regulation G and Non-GAAP
Financial Measures.

For the second quarter of 2023, pre-tax income from continuing operations was $1.9 billion, compared to $3.9 billion in the prior year quarter. Net
income attributable to AIG common shareholders was $1.5 billion, or $2.03 per diluted common share, compared to $2.7 billion, or $3.43 per diluted
common share, in the prior year quarter. The decline in pre-tax income was primarily driven by a decrease in net realized gains on Fortitude Re funds
withheld assets and embedded derivative as well as a decrease in net realized gains excluding Fortitude Re funds withheld assets and embedded
derivative, higher catastrophe losses, lower net favorable prior year development (PYD) and higher interest crediting rates at Life and Retirement. The
decline was partially offset by higher net investment income and continued improvement in accident year underwriting margin. These pre-tax items
were partially offset by lower income tax expense due to a decrease in income from continuing operations and lower income attributable to thenoncontrolling interest (NCI) due to a decrease in net income at Corebridge compared to the prior year quarter despite higher income attributable toNCI as a result of lower AIG ownership in Corebridge.
AATI was $1.3 billion, or $1.75 per diluted common share, for the second quarter of 2023, compared to $1.1 billion, or $1.39 per diluted commonshare, in the prior year quarter. The increase in AATI was due to higher Life and Retirement results, partially offset by higher catastrophe losses andlower net favorable PYD.
Total consolidated net investment income for the second quarter of 2023 was $3.6 billion, an increase of 37% from $2.6 billion in the prior year quarter,
benefiting from higher income from fixed maturity securities and loan portfolios due to the higher reinvestment rates on new investments and floating
rate securities. Total net investment income on an APTI basis* was $3.3 billion, an increase of $774 million from the prior year quarter.
Book value per common share was $58.49 as of June 30, 2023, a decrease of 1% from March 31, 2023 and an increase of 6% from December 31,
2022. The decrease from March 31, 2023 was driven by an increase in accumulated other comprehensive loss (AOCI) due to increased interest rates
and the increase from December 31, 2022 was driven by a decrease in AOCI as a result of the Corebridge secondary offering and share repurchases
discussed above. Adjusted book value per common share* was $75.76, almost flat compared to March 31, 2023 and December 31, 2022. Adjusted
tangible book value per common share* was $69.99, an increase of approximately 1% from both March 31, 2023 and December 31, 2022.
In the second quarter of 2023, AIG repurchased $554 million of common stock, or approximately 10 million shares, paid $268 million of common andpreferred dividends and repaid $388 million of debt maturities. AIG also received proceeds of approximately $1.2 billion from the Corebridge
secondary offering, $264 million from the Corebridge special dividend and $180 million from the Corebridge share repurchase, contributing to parent
liquidity of $4.3 billion as of June 30, 2023. AIG’s ratio of total debt and preferred stock to total capital at June 30, 2023 was 32.3%, down from 32.8%
at March 31, 2023, primarily driven by repayment of $388 million of debt and the Corebridge secondary offering. Excluding AOCI, the total debt andpreferred stock to total capital ratio* was 26.0% at June 30, 2023.
On August 1, the AIG Board of Directors declared a quarterly cash dividend on AIG common stock of $0.36 per share. The dividend is payable on
September 29, 2023 to stockholders of record at the close of business on September 15, 2023.
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, 2023 to holders of record at the close of business on August 31, 2023.
FINANCIAL SUMMARY

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

2022

2023

Net income attributable to AIG common shareholders$ 2,746$

1,485

Net income per diluted share attributable to AIG common shareholders$ 3.43$

2.03

Adjusted pre-tax income (loss)$ 1,543$

1,890

General Insurance

1,257

1,319

Life and Retirement

747

991

Other Operations

(461)

(420)

Net investment income
Net investment income, APTI basis

Adjusted after-tax income attributable to AIG common shareholders$ 2,604

$

2,504

3,571
3,278

$ 1,111$

1,282

Adjusted after-tax income per diluted share attributable to AIG common shareholders $ 1.39

$

1.75

Weighted average common shares outstanding - diluted (in millions)

800.7

730.5

Return on common equity

21.7% 14.0%Adjusted return on common equity

7.7

% 9.4

%

Book value per common share$ 58.64$

58.49

Adjusted book value per common share$ 73.78$

75.76

Common shares outstanding (in millions)

771.3

717.5

GENERAL INSURANCE
Three Months Ended June 30,($ in millions)

2022

2023

Gross premiums written$ 9,581$ 10,399

9%

Net premiums written$ 6,866$ 7,537

10%

North America

3,401

3,973

17

North America Commercial Lines

2,918

3,410

17

North America Personal Insurance

483

563

17

International

3,465

3,564

3

International Commercial Lines

2,037

2,223

9

International Personal Insurance

1,428

1,341

(6)

Underwriting income (loss)

Change

$ 799

$ 594

(26)

North America

406

352

(13)

North America Commercial Lines

416

403

(3)

North America Personal Insurance

(10)

(51)

(410)

International

393

242

(38)

International Commercial Lines

349

216

(38)

International Personal Insurance

44

26

(41)

Net investment income, APTI basis

$ 458

$ 725

58

%

Adjusted pre-tax income$ 1,257$ 1,319

5

%

12.2

% 0.2

pts

Return on adjusted segment common equity

Underwriting ratios:

12.0

%

%

North America Combined Ratio (CR)

86.3

89.0

2.7

North America Commercial Lines CR

83.6

85.6

2.0

North America Personal Insurance CR

102.3

112.9

10.6

International CR

88.5

92.6

4.1

International Commercial Lines CR

82.4

89.0

6.6

International Personal Insurance CR

96.9

98.0

1.1

General Insurance (GI) CR

87.4

90.9

3.5

GI Loss ratio

56.2

59.3

3.1

(1.8)

(3.9)

(2.1)

Prior year development, net of reinsurance and prior year premiums 2.9

1.0

(1.9)

GI Accident year loss ratio, as adjusted

57.3

56.4

(0.9)

GI Expense ratio

31.2

31.6

0.4

GI Accident year combined ratio, as adjusted

88.5

88.0

(0.5)

North America AYCR

89.9

87.8

(2.1)

North America Commercial Lines AYCR

88.2

85.1

(3.1)

North America Personal Insurance AYCR

99.7

107.1

7.4

International AYCR

87.2

88.0

0.8

International Commercial Lines AYCR

81.4

83.1

1.7

International Personal Insurance AYCR

95.2

95.3

0.1

pts

pts

Less: impact on loss ratio
Catastrophe losses and reinstatement premiums

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

General Insurance

Second quarter 2023 NPW of $7.5 billion was a 10% increase from the prior year quarter, or 11% on a constant dollar
basis and adjusted for the International lag elimination, driven by Commercial Lines. North America Commercial Linesdelivered 17% NPW growth, or 18% on a constant dollar basis, from the prior year quarter, benefiting from positive ratechanges, higher renewal retentions and strong new business production, particularly in Retail Property, Lexington andValidus Re, partially offset by continued selectivity in Financial Lines Director & Officer and transactional products.
International Commercial Lines delivered 9% NPW growth, or 6% on a constant dollar basis and adjusted for theInternational lag elimination, from the prior year quarter, attributed to continued positive rate changes and strong new

business production, mainly in Property and Global Specialty, partially offset by headwinds from a lack of capital market
transaction activity. Global Personal Insurance NPW decreased 0.4%, but grew 5% on a constant dollar basis and adjusted
for the International lag elimination, from the prior year quarter, primarily driven by growth in Private Client Group resulting
from changes in our reinsurance program, partially offset by a decrease in Travel and Warranty.
Second quarter 2023 underwriting income was $594 million and included $250 million of total catastrophe-related charges,
representing 3.9 loss ratio points, of which $159 million was in North America, mainly attributable to U.S. convective
storms, and $91 million in International, mainly attributable to Typhoon Mawar, compared to $121 million, or 1.8 loss ratio
points, in the prior year quarter. Second quarter 2023 also included lower favorable PYD of $115 million compared tofavorable PYD of $202 million in the prior year quarter.
The combined ratio was 90.9%, a 3.5 point increase from the prior year quarter, driven by a 3.1 point increase in the loss
ratio. The AYCR improved 0.5 point from the prior year quarter to 88.0%, driven by a 0.9 point decrease in the accident
year loss ratio, as adjusted* (AYLR) to 56.4%, reflecting continued earn-in of premium rate increases exceeding loss costtrends in Commercial Lines. The AYCR improvement also reflects business mix benefit, continued positive rate changes,
focused risk selection and improved terms and conditions. The expense ratio was 31.6%, a 0.4 point increase from theprior year quarter, driven by an increase in the general operating expense ratio while the acquisition ratio remained flat.
The North America Commercial Lines combined ratio was 85.6% and International Commercial Lines combined ratio was
89.0%, a 2.0 point and a 6.6 point increase, respectively, from the prior year quarter. The AYCR for North America
Commercial Lines improved 3.1 points from the prior year quarter to 85.1%, with a 2.8 point improvement in AYLR. The
AYCR for International Commercial Lines increased 1.7 points from the prior year quarter to 83.1% due to a higher general
operating expense ratio driven by changes in business mix.
The North America Personal Insurance combined ratio increased 10.6 points to 112.9% and the AYCR increased 7.4
points to 107.1% compared to the prior year quarter, driven by higher catastrophe losses, changes in business mix,
reinsurance cessions and an increase in general operating expense ratio attributable to the decline in premiums earned.
The International Personal Insurance combined ratio increased 1.1 points to 98.0% and the AYCR increased 0.1 point to95.3% from the prior year quarter, driven by higher catastrophe losses and a higher expense ratio, partially offset by
improvement in the AYLR from changes in business mix and reflecting earned-in rate exceeding loss costs.
General Insurance return on adjusted segment common equity* for the second quarter was 12.2% on an annualized basis,compared with 12.0% in the prior year quarter.
LIFE AND RETIREMENT
Three Months Ended
June 30,($ in millions, except as indicated)

2022

2023

ChangeAdjusted pre-tax income

$ 747

$ 991

33

Individual Retirement

370

585

58

Group Retirement

180

201

12

Life Insurance

120

78

(35)

Institutional Markets

77

127

65

Premiums and fees

$ 1,846$ 3,23875

Individual Retirement

246

238

(3)

%

%

Group Retirement

109

106

(3)

Life Insurance

946

934

(1)

Institutional Markets

545

1,960

260

Premiums and deposits$ 7,099$ 10,054

42

Individual Retirement

3,620

4,045

12

Group Retirement

1,772

1,923

9

Life Insurance

1,157

1,176

2

Institutional Markets

550

2,910

429

$ 80

$ (2105)

NM

Individual Retirement

628

(359)

NM

Group Retirement(548)(1,746)(219)$ 1,989$ 2,478

25

%

12.2

% 2.5

pts

Net flows

Net investment income, APTI basis

Return on adjusted segment common equity 9.7

%

%

%

Life and Retirement

Life and Retirement reported APTI of $991 million for the second quarter of 2023, up 33% from $747 million in the prioryear quarter. The increase was primarily driven by higher base portfolio income, partially offset by a decline in alternative
investment returns and fee income. Base net investment spreads in Individual and Group Retirement continued to widen
with a 64-basis point improvement year-over-year, driven by higher reinvestment rates.
Premiums increased 128% to $2.5 billion from $1.1 billion and premiums and deposits increased 42% to $10.1 billion from
$7.1 billion in the prior year quarter. The second quarter saw record sales in Fixed Index Annuities and a higher volume oftransactional businesses with $1.9 billion of pension risk transfer activity and $0.9 billion of guaranteed investment
contracts.
The balance sheet and the capital position of the business continue to remain strong. During the second quarter,
Corebridge returned approximately $750 million to its shareholders (including AIG) through approximately $550 million ofcommon stock dividends and $200 million in share repurchases.
Life and Retirement return on adjusted segment common equity* for the second quarter was 12.2% on an annualizedbasis, compared with 9.7% in the prior year quarter.
OTHER OPERATIONS
Three Months Ended
June 30,

($ in millions)

2022

2023

$ (494)$ (414)

16

163

(9)

NM

Adjusted pre-tax loss before consolidation and eliminations (331)

(423)

(28)

Consolidation and eliminations

(130)

3

NM

$ (461)$ (420)9

Corporate and Other
Asset Management Group

Adjusted pre-tax loss

Change%%Other Operations

Other Operations adjusted pre-tax loss (APTL) of $420 million improved $41 million from the prior year quarter, primarily
due to the impact of Variable Interest Entities (VIEs), in addition to better results from Corporate and Other.
Corporate and Other APTL improved $80 million, or 16%, from the prior year quarter, largely due to the absence of
mark-to-market losses on a legacy investment portfolio that was sold in the fourth quarter of 2022, as well as higher
income from short-term investments as a result of high short-term yields on parent liquidity funds.
Asset Management Group (AMG) APTL decreased $172 million from the prior year quarter largely due to lower net
investment income associated with VIEs compared to the prior year quarter, which reflected gains on sales. AMG results inthe second quarter also reflected the sale of our Collateralized Loan Obligations manager in the first quarter of 2023 andthe subsequent deconsolidation of associated securitizations by the end of the second quarter, which resulted in lower
investment income and an offsetting impact on interest expense with minimal impact to APTL.
Changes in Consolidation and eliminations were attributed to realized capital gains associated with VIEs, which theinsurance subsidiaries report as net investment income and are eliminated in Other Operations.
CONFERENCE CALL
AIG will host a conference call tomorrow, Wednesday, August 2, 2023 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 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 members of AIG management may from time to time
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
and 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 catastrophic events, both natural and man-made, and macroeconomic and/or geopolitical events, anticipated dispositions,monetization and/or acquisitions of businesses or assets, the successful integration of acquired businesses, management succession and retention
plans, exposure to risk, trends in operations 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 specific projections, goals, assumptions and other forward-looking statements include, without
limitation:

the impact of adverse developments affecting economic conditions in the markets in which AIG and its businesses operate
in the U.S. and globally, including adverse developments related to financial market conditions, macroeconomic trends,
fluctuations in interest rates and foreign currency exchange rates, inflationary pressures, pressures on the commercial realestate market, an economic slowdown or recession, geopolitical events or conflicts, including the conflict between Russia
and Ukraine, and stress and instability in the banking sector;
occurrence of catastrophic events, both natural and man-made, including the effects of climate change, geopolitical eventsand conflicts and civil unrest;disruptions in the availability or accessibility of AIG's or a third party’s information technology systems, including hardware
and software, infrastructure or networks, and the inability to safeguard the confidentiality and integrity of customer,
employee or company data due to cyberattacks, data security breaches, or infrastructure vulnerabilities;
AIG’s ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired
businesses, and the anticipated benefits thereof;
AIG's ability to realize expected strategic, financial, operational or other benefits from the separation of Corebridge as well
as AIG’s equity market exposure to Corebridge;
the effectiveness of strategies to retain and recruit key personnel and to implement effective succession plans;concentrations in AIG’s investment portfolios;
AIG’s reliance on third-party investment managers;changes in the valuation of AIG’s investments;
AIG’s reliance on third parties to provide certain business and administrative services;availability of adequate reinsurance or access to reinsurance on acceptable terms;
concentrations of AIG’s insurance, reinsurance and other risk exposures;
nonperformance or defaults by counterparties, including Fortitude Reinsurance Company Ltd. (Fortitude Re);
AIG's ability to adequately assess risk and estimate related losses as well as 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;
AIG's ability to effectively implement changes under AIG 200, including the ability to realize cost savings;
difficulty in marketing and distributing products through current and future distribution channels;
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;changes in accounting principles and financial reporting requirements;
the effects of sanctions, including those related to the conflict between Russia and Ukraine, and the failure to comply withthose sanctions;the effects of changes in laws and regulations, including those relating to the regulation of insurance, in the U.S. and othercountries in which AIG and its businesses operate;changes to tax laws in the U.S. and other countries in which AIG and its businesses operate;
the outcome of significant legal, regulatory or governmental proceedings;
AIG’s ability to effectively execute on sustainability targets and standards;
AIG’s ability to address evolving stakeholder expectations with respect to environmental, social and governance matters;
the impact of COVID-19 or other epidemics, pandemics and other public health crises and responses thereto; 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, 2023 (which will be
filed with the Securities and Exchange Commission (SEC)) and Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A in
AIG Annual Report on Form 10-K for the year ended December 31, 2022.
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 of that
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 materially fromthose expressed or implied in any 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 SEC
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 other companies. The reconciliations of suchmeasures to the most comparable GAAP measures in accordance with Regulation G are included within the relevant tables attached to this news
release or in the Second Quarter 2023 Financial Supplement available in the Investors section of AIG’s website, www.aig.com.
Unless otherwise mentioned or unless the context indicates otherwise, we use the terms “AIG,” “we,” “us” and “our” to refer toGroup, Inc., a Delaware corporation, and its consolidated subsidiaries.

American International

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 our net worth on a per-common share basis after eliminating items that can fluctuate significantly from period to period,
including changes in fair value (1) of AIG’s available for sale securities portfolio, (2) of market risk benefits attributable to our own credit risk and (3)due to discount rates used to measure traditional and limited payment long-duration insurance contracts, foreign currency translation adjustments andU.S. tax attribute deferred tax assets. This measure also eliminates the asymmetrical impact resulting from changes in fair value of our available forsale securities portfolio wherein there is largely no offsetting impact for certain related insurance liabilities. In addition, we adjust 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.
We exclude deferred tax assets representing U.S. tax attributes related to net operating loss carryforwards and foreign tax credits as they have not yet
been utilized. Amounts for interim periods are estimates based on projections of full-year attribute utilization. As net operating loss carryforwards andforeign tax credits are utilized, the portion of the DTA utilized is included in these book value per common share metrics. Adjusted book value percommon share is derived by dividing total AIG common shareholders’ equity, excluding AOCI adjusted for the cumulative unrealized gains and losses
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 (ROCE) – Adjusted After-tax Income Excluding AOCI adjusted for the cumulative unrealized gains andlosses related to Fortitude Re funds withheld assets and DTA (Adjusted return on common equity) is used to show the rate of return oncommon shareholders’ equity. We believe this measure is useful to investors because it eliminates items that can fluctuate significantly from period toperiod, including changes in fair value (1) of AIG’s available for sale securities portfolio, (2) of market risk benefits attributable to our own credit risk and(3) due to discount rates used to measure traditional and limited payment long-duration insurance contracts, 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 our available
for sale securities portfolio wherein there is largely no offsetting impact for certain related insurance liabilities. In addition, we adjust for the cumulative
unrealized gains and losses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude
Re. We exclude 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 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 our 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), changes in fair value of securities used to hedge guaranteed living benefits (included in Net investment income for GAAP purposes) andincome from elimination of the International reporting lag. Adjusted revenues is a GAAP measure for our 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 our segments. These items generally fall into one or more of the following broad categories: legacy matters having no
relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; andmeasures that we believe to be common to the industry. APTI is a GAAP measure for our segments. Excluded items include the following:changes in fair value of securities used to hedge guaranteed living benefits;
net change in market risk benefits (MRBs);changes in benefit reserves 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 and changes in settlement accruals) on
derivative instruments used for non-qualifying (economic) hedging or for asset replication. Earned income on sucheconomic 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 to policyholder 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 and other;
non-operating litigation reserves and settlements;
restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency and simplify
our organization;
the portion of favorable or unfavorable prior year reserve development for which we have ceded the risk under retroactive
reinsurance agreements and related changes in amortization of the deferred gain;
integration and transaction costs associated with acquiring or divesting businesses;
losses from the impairment of goodwill;
non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes or changes toaccounting principles; andincome from elimination of the international reporting lag.
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 our current
businesses or operating performance; andnet tax charge related to the enactment of the Tax Cuts and Jobs Act.
See page 15 for the reconciliation of Net income attributable to AIG to Adjusted After-tax Income Attributable to AIG.
Ratios: We, along with most property and casualty insurance companies, use the loss ratio, the expense ratio and the combined ratio as measures ofunderwriting 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.
Our 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 ofwhich affect such ratios. In addition, investment returns, local taxes, cost of capital, regulation, product type and competition can have an effect on
pricing and consequently on profitability as reflected in underwriting income and associated ratios.
Accident year loss and 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. We believe that as adjusted ratios are meaningful measures of our underwriting results on an
ongoing basis as they exclude catastrophes and the impact of reserve discounting which are outside of management’s control. We also exclude prioryear 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 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 insurance solutions that help
businesses and individuals in approximately 70 countries and jurisdictions protect their assets and manage risks. For additional information, visit

www.aig.com. AIG common stock is listed on the New York Stock Exchange.
AIG is the marketing name for the worldwide operations of American International Group, Inc. All products and services are written or provided bysubsidiaries or affiliates of American 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 property casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state
guaranty funds, and insureds are therefore not protected by such funds.
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,
2022

2023
Total
Tax

Non-

(Benefit) controlling
Pre-tax Charge
Pre-tax income/net income, including noncontrollinginterests$ 3,925 $ 845

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

3,925

845

Total Tax Non-

After

Interests(d) Tax$ —$ 3,079

(325)

(325)

(325)

2,754

(Benefits) controlling
Pre-tax Charge$ 1,867

1,867

$ 176

176

After

Interests(d) Tax$ —$ 1,691

(198)

(198)

(198)

1,493

Dividends on preferred stock

8

8

Net income attributable to AIG common shareholders

2,746

1,485

Adjustments:
Changes in uncertain tax positions and other tax adjustments

(3)

—

3

340

—

(340)

Deferred income tax valuation allowance (releases) charges

17

—

(17)

(78)

—

78

Changes in fair value of securities used to hedge guaranteedliving benefits

(10)

(2)

—

(8)

3

—

—

3

Change in market risk benefit, net(a)

(45)

(10)

—

(35)

(262)

(55)

—

(207)

Changes in benefit reserves related to net realized gains(losses)

(7)

(2)

—

(5)

1

—

—

1

Changes in the fair value of equity securities

30

6

—

24

(43)

(9)

—

(34)

Loss on extinguishment of debt

299

63

—

236

—

—

—

—

Net investment income on Fortitude Re funds withheld assets (188)

(40)

—

(148)

(291)

(61)

—

(230)

Net realized losses on Fortitude Re funds withheld assets

19

—

67

138

28

—

110

86

Net realized gains on Fortitude Re funds withheld embedded
derivative(2,776) (583)—(2,193)

(180)

(38)

—

(142)

Net realized losses(b)

140

—

133

390

77

—

313

7

Loss from discontinued operations

1—

Net (gain) loss on divestitures and other

1

1

—

—

(43)

(9)

—

(34)

Non-operating litigation reserves and settlements

(4)

(1)

—

(3)

1

—

—

1

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

(144)

(30)

—

(114)

(18)

(4)

—

(14)

Net loss reserve discount charge

14

4

—

10

16

4

—

12

Pension expense related to a one-time lump sum payment toformer employees

—

—

—

—

67

14

—

53

Integration and transaction costs associated with acquiring ordivesting businesses

38

8

—

30

79

17

—

62

Restructuring and other costs

175

37

—

138

153

32

—

121

Non-recurring costs related to regulatory or accountingchanges

9

2

—

7

12

2

—

10

Net impact from elimination of international reporting lag(c)

—

—

—

—

—

—

—

—

239

239

34

34

$ (86)$ 1,111$ (164)$ 1,282

Noncontrolling interests(d)Adjusted pre-tax income/Adjusted after-tax income
attributable to AIG common shareholders$ 1,543 $ 338$ 1,890$ 436

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per common share data)
Reconciliations of Adjusted Pre-tax and After-tax Income (continued)
Six Months Ended June 30,
2022

2023
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
Noncontrolling interests$ 9,639 $ 1,999

$ —

(712)

$ 7,639(712)$ 1,636

$ 32

After

Interests(d) Tax$ —$ 1,604

(81)

(81)

Pre-tax income/net income attributable to AIG

9,639

1,999

(712)

6,927

1,636

32

(81)

1,523

Dividends on preferred stock

15

15

Net income attributable to AIG common shareholders

6,912

1,508

Adjustments:
Changes in uncertain tax positions and other tax adjustments

88

—

(88)

362

—

(362)

Deferred income tax valuation allowance (releases) charges

23

—

(23)

(97)

—

97

Changes in fair value of securities used to hedge guaranteedliving benefits

(23)

(5)

—

(18)

6

1

—

5

Change in market risk benefit, net(a)

(278)

(59)

—

(219)

(66)

(14)

—

(52)

Changes in benefit reserves related to net realized gains(losses)

(9)

(2)

—

(7)

(5)

(1)

—

(4)

Changes in the fair value of equity securities

57

12

—

45

(94)

(20)

—

(74)

Loss on extinguishment of debt

299

63

—

236

—

—

—

—

Net investment income on Fortitude Re funds withheld assets

(479)

(101)

—

(378)

(737)

(155)

—

(582)

Net realized losses on Fortitude Re funds withheld assets

226

48

—

178

169

35

—

134

Net realized (gains) losses on Fortitude Re funds withheld
embedded derivative(6,094) (1,280)—(4,814)

985

207

—

778

Net realized (gains) losses(b)

(209)

—

(111)

1,156

285

—

871

(98)

Loss from discontinued operations

1—

Net gain on divestitures and other

(39)

(8)

—

(31)

(41)

(9)

—

(32)

Non-operating litigation reserves and settlements

(38)

(8)

—

(30)

—

—

—

—

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

(144)

(30)

—

(114)

(37)

(8)

—

(29)

Net loss reserve discount (benefit) charge

(6)

(1)

—

(5)

80

17

—

63

Pension expense related to a one-time lump sum payment toformer employees

—

—

—

—

67

14

—

53

Integration and transaction costs associated with acquiring ordivesting businesses

84

18

—

66

131

28

—

103

Restructuring and other costs

268

56

—

212

270

57

—

213

Non-recurring costs related to regulatory or accountingchanges

13

3

—

10

25

5

—

20

Net impact from elimination of international reporting lag(c)——Noncontrolling interests(d)Adjusted pre-tax income/Adjusted after-tax income
attributable to AIG common shareholders$ 3,267 $ 718

—

—

(12)

517

517

$ (195)$ 2,339$ 3,533

(3)

$ 736

—

(9)

(208)

(208)

$ (289)$ 2,493(a) Includes realized gains and losses on certain derivative instruments used for non-qualifying (economic) hedging.
Includes all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative(b) instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld
assets.
Effective in the quarter ended December 31, 2022, the foreign property and casualty subsidiaries report on a calendar year ending December 31.
We determined that the effect of not retroactively applying this change was immaterial to our Consolidated Financial Statements for the current and(c)prior periods. Therefore, we reported the cumulative effect of the change in accounting principle within the Consolidated Statements of Income(Loss) for the year ended December 31, 2022 and did not retrospectively apply the effects of this change to prior periods.
(d) Includes the portion of equity interest of non-operating income of Corebridge and consolidated investment entities that AIG does not own.
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 June30,

Earnings per common share:

2022

2023 % Inc. (Dec.)

Six Months Ended June 30,

2022

2023

% Inc.
(Dec.)

Basic
Income from continuing operations
Income from discontinued operations
Net income attributable to AIG common shareholders$ 3.47 $ 2.05 (40.9)
—

—

NM

% $ 8.60 $ 2.06 (76.0)
—

—

%

NM

$ 3.47 $ 2.05 (40.9)$ 8.60 $ 2.06 (76.0)

Income from continuing operations

3.43 $ 2.03 (40.8)$ 8.50 $ 2.05 (75.9)

Income from discontinued operations—

Diluted

Net income attributable to AIG common shareholders

—

NM

—

—

NM

$ 3.43 $ 2.03 (40.8)$ 8.50 $ 2.05 (75.9)

Adjusted after-tax income attributable to AIG common shareholders per diluted$ 1.39 $ 1.75 25.9
share

% $ 2.88 $ 3.38 17.4

Weighted average shares outstanding:
Basic

790.9

725.8

803.5 732.2%

Diluted

800.7

730.5

813.3 737.3

Reconciliation of Book Value per Common Share

As of period end:

June 30,
2022

December
31,
2022

March 31, June 30,
2023
2023

Total AIG shareholders' equity$ 45,713$ 40,970$ 43,317$ 42,454

Less: Preferred equity

485

485

485

485

Total AIG common shareholders' equity (a)45,22840,48542,832

41,969Less: Deferred tax assets (DTA)*

4,747

4,518

4,543

4,263

Less: Accumulated other comprehensive income (AOCI)(18,647 )(22,616)(19,329 )(18,982 )Add: Cumulative unrealized gains and losses related to Fortitude Re Funds withheld assets(2,223 )(2,862)(2,418 )(2,331 )Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld
assets(16,424 )(19,754)(16,911 )(16,651 )Total adjusted common shareholders' equity (b)$ 56,905$ 55,721$ 55,200$ 54,357

Goodwill

3,935

3,927

3,939

3,617

Value of business acquired

98

92

92

92

Value of distribution channel acquired

438

418

408

188

Other intangibles

289

286

284

244

Total intangible assets

4,760

4,723

4,723

4,141

$ 52,145$ 50,998$ 50,477$ 50,216

771.3

734.1

727.6

717.5

Less: Intangible assets:

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

June 30, % Inc.
2022
(Dec.)

December 31, % Inc. March 31, % Inc.
2022
(Dec.) 2023
(Dec.)

Book value per common share (a÷d)$ 58.64 (0.3 )% $ 55.15

June 30,2023

6.1 % $ 58.87(0.6 )% $ 58.49

Adjusted book value per common share (b÷d)

73.78 2.7

75.90

(0.2 )

75.87(0.1 )

75.76

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

67.61 3.5

69.47

0.7

69.37

0.9

69.99

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

Three Months Ended June 30,
2022

2023

Actual or annualized net income (loss) attributable to AIG common shareholders (a)$ 10,984$ 5,940

Actual or annualized adjusted after-tax income attributable to AIG common shareholders (b)$ 4,444$ 5,128

Average AIG Common Shareholders' equity (c)$ 50,600$ 42,401

Less: Average DTA*

4,844

4,403

Less: Average AOCI

(12,838)(19,156)

Add: Average cumulative unrealized gains and losses related to Fortitude Re funds withheld assets(1,088)(2,375)

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld assets(11,750)(16,781)$ 57,506$ 54,779

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

21.7

%

14.0

%

Adjusted return on common equity (b÷d)

7.7

%

9.4

%

* 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

2022

2023

$ 2,604$ 3,571

Changes in fair value of securities used to hedge guaranteed living benefits (13)(14)

Changes in the fair value of equity securities

30

(43)

Net investment income on Fortitude Re funds withheld assets

(188)

(291)

Net realized gains (losses) related to economic hedges and other71

55$ 2,504$ 3,278

Total Net Investment Income - APTI Basis
Net Premiums Written - Change in Constant Dollar and Lag Adjusted

Three Months Ended June 30, 2023

NorthGlobal General
General Insurance

Global -America

International -Commercial Personal Commercial Commercial Personal

Insurance Lines

Insurance Lines

Lines

Insurance

Change in net premiums written
Increase (decrease) in original currency and adjusted for lag elimination 10.7

% 12.6

%

5.3

%

17.6

%

5.7

%

1.1

%

Foreign exchange effect

(2.1

)

)

(4.3

)

(0.7

)

(2.0

)

(5.5

)

Lag elimination impact

1.2

2.3

(1.4

)

—

(1.7

)

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

9.8% 13.7(0.4)% 16.9

(6.1

)%

(1.2

%

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
June 30,
2022

2023

Combined ratio

87.4

90.9

Catastrophe losses and reinstatement premiums

(1.8)

(3.9)

Prior year development, net of reinsurance and prior year premiums

2.9

1.0

Accident year combined ratio, as adjusted

88.5

88.0

Combined ratio

86.3

89.0

Catastrophe losses and reinstatement premiums

(1.7)

(5.0)

Prior year development, net of reinsurance and prior year premiums

5.3

3.8

Accident year combined ratio, as adjusted

89.9

87.8

Total General Insurance

North America

5.4
%

9.1

%

North America - Commercial Lines
Loss ratio

58.7

61.0

Catastrophe losses and reinstatement premiums

(1.9)

(5.3)

Prior year development, net of reinsurance and prior year premiums

6.5

4.8

Accident year loss ratio, as adjusted

63.3

60.5

Combined ratio

83.6

85.6

Catastrophe losses and reinstatement premiums

(1.9)

(5.3)

Prior year development, net of reinsurance and prior year premiums

6.5

4.8

Accident year combined ratio, as adjusted

88.2

85.1

Combined ratio

102.3

112.9

Catastrophe losses and reinstatement premiums

(0.5)

(3.3)

Prior year development, net of reinsurance and prior year premiums

(2.1)

(2.5)

Accident year combined ratio, as adjusted

99.7

107.1

Combined ratio

88.5

92.6

Catastrophe losses and reinstatement premiums

(2.0)

(2.7)

Prior year development, net of reinsurance and prior year premiums

0.7

(1.9)

Accident year combined ratio, as adjusted

87.2

88.0

Combined ratio

82.4

89.0

Catastrophe losses and reinstatement premiums

(2.3)

(2.5)

North America - Personal Insurance

International

International - Commercial Lines

Prior year development, net of reinsurance and prior year premiums

1.3

(3.4)

Accident year combined ratio, as adjusted

81.4

83.1

Loss ratio

56.4

56.3

Catastrophe losses and reinstatement premiums

(1.6)

(3.2)

Prior year development, net of reinsurance and prior year premiums

(0.1)

0.5

Accident year loss ratio, as adjusted

54.7

53.6

Combined ratio

96.9

98.0

Catastrophe losses and reinstatement premiums

(1.6)

(3.2)

Prior year development, net of reinsurance and prior year premiums

(0.1)

0.5

Accident year combined ratio, as adjusted

95.2

95.3

Combined ratio

83.1

87.0

Catastrophe losses and reinstatement premiums

(2.1)

(4.0)

Prior year development, net of reinsurance and prior year premiums

4.3

1.4

Accident year combined ratio, as adjusted

85.3

84.4

International - Personal Insurance

Global - Commercial 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
June 30,
2022

2023

Adjusted pre-tax income$ 1,257$ 1,319

Interest expense on attributed financial debt

149

133

Adjusted pre-tax income including attributed interest expense

1,108

1,186

Income tax expense

254

274

Adjusted after-tax income

854

912

Dividends declared on preferred stock33

Adjusted after-tax income attributable to common shareholders

$ 851

$ 909

Ending adjusted segment common equity$ 30,104$ 30,153

Average adjusted segment common equity$ 28,361$ 29,848

Return on adjusted segment common equity

12.0

Total segment shareholder’s equity

%

12.2

$ 25,651$ 24,619

Less: Preferred equity

210

202

Total segment common equity

25,441

24,417

Less: Accumulated other comprehensive income (AOCI)(5,163)(6,390)Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

(500)

(654)

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld assets (4,663)
Total adjusted segment common equity$ 30,104(5,736)$ 30,153

Reconciliation of Life and Retirement Return on Adjusted Segment Common Equity

Three Months Ended
June 30,

Adjusted pre-tax income
Interest expense on attributed financial debt

2022

2023

$ 747

$ 991

68

113

%

Adjusted pre-tax income including attributed interest expense

679

878

Income tax expense

134

174

Adjusted after-tax income

545

704

Dividends declared on preferred stock22

Adjusted after-tax income attributable to common shareholders

$ 543

$ 702

Ending adjusted segment common equity$ 22,011$ 23,270

Average adjusted segment common equity$ 22,452$ 23,108Return on adjusted segment common equity

9.7

Total segment shareholder’s equity% 12.2$ 11,870$ 9,819

Less: Preferred equity

154

161

Total segment common equity

11,716

9,658

Less: Accumulated other comprehensive income (AOCI)(12,018)(15,289)

Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets(1,723)(1,677)

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld assets (10,295)(13,612)

Total adjusted segment common equity$ 22,011

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
June 30,
2022

2023

Individual Retirement:
Premiums
Deposits

$ 60
3,566

$ 66
3,984

$ 23,270%

OtherPremiums and deposits

(6)

(5)

$ 3,620$ 4,045$5$4Group Retirement:
Premiums
Deposits

1,767

1,919

Other

—

—

$ 1,772$ 1,923

Premiums

$ 556

$ 563

Deposits

388

384

Other

213

229

$ 1,157$ 1,176

Premiums$ 496$ 1,911

Deposits

46

991

Other

8

8

$ 550

$ 2,910Premiums$ 1,117$ 2,544

Deposits

5,767

7,278

Other

215

232

$ 7,099$ 10,054

Premiums and depositsLife Insurance:

Premiums and deposits

Institutional Markets:

Premiums and deposits

Total Life and Retirement:

Premiums and deposits

Total Debt and Preferred Stock LeverageThree Months Ended
June 30, 2023
Hybrid - debt securities / Total capital

2.9

Financial debt and debt held for sale / Total capital

28.7

Total debt / Total capital

31.6

Preferred stock / Total capital

0.7%

Total debt and preferred stock / Total capital (incl. AOCI) 32.3
AOCI Impact

(6.3

)

Total debt and preferred stock / Total capital (ex. AOCI) 26.0%

View source version on businesswire.com: https://www.businesswire.com/news/home/20230801959349/en/
Quentin McMillan (Investors): quentin.mcmillan@aig.com
Claire Talcott (Media): claire.talcott@aig.com
Source: American International Group, Inc.