AIG Reports Third Quarter 2021 Financial Results
November 4, 2021
General Insurance net premiums written grew 11% driven by Commercial Lines growth of 17%
The General Insurance combined ratio improved by 7.5 points to 99.7% from the prior year due to strong
underwriting results, including lower catastrophe losses, net of reinsurance (CATs) and reinstatement premiums;
and, on an as adjusted* basis, improved by 2.8 points to 90.5%
Separation of the Life and Retirement business from AIG continued, with the sale of a 9.9% equity stake for $2.2
billion in cash recently completed and an IPO on track for 2022
Net income per diluted common share was $1.92 compared to $0.32 in the prior year quarter and adjusted
after-tax income attributable to AIG common shareholders* (AATI) per diluted common share of $0.97 increased
20% from $0.81
Repurchased $1.1 billion of AIG common stock and redeemed $1.5 billion of debt
THIRD QUARTER NOTEWORTHY ITEMSGeneral Insurance adjusted pre-tax income (APTI) of $811 million reflects strong underwriting results; the combined ratio
was 99.7, a 7.5 point improvement from the prior year quarter primarily due to strong underwriting results across theportfolio, including lower CATs.
Life and Retirement APTI of $877 million reflects higher net investment income and fee income, offset by impacts from theannual actuarial assumption update and unfavorable mortality; Life and Retirement return on adjusted segment common
equity* for the third quarter was 12.2%, on an annualized basis.
Net income attributable to AIG common shareholders was $1.7 billion, or $1.92 per diluted common share, compared to
net income of $281 million, or $0.32 per diluted common share, in the prior year quarter.
Adjusted after-tax income attributable to AIG common shareholders was $837 million, or $0.97 per diluted common share,compared to $708 million, or $0.81 per diluted common share, in the prior year quarter due to strong operating
performance in General Insurance.
As of September 30, 2021, book value per common share was $77.03, an increase of 1% from December 31, 2020.
Adjusted book value per common share* was $61.80, an increase of 8% from December 31, 2020. Adjusted tangible bookvalue per share* was $55.89, an increase of 9% from December 31, 2020.
Return on common equity (ROCE) and Adjusted ROCE* were 10.2% and 6.5%, respectively, on an annualized basis forthe third 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)--Nov. 4, 2021-- American International Group, Inc. (NYSE: AIG) today reported financial results for the third quarter
ended September 30, 2021.
AIG President and CEO Peter Zaffino said: “We continue to build momentum and execute on our strategic priorities as evidenced by another quarter ofoutstanding financial results, as well as significant progress on AIG 200 and the separation of Life and Retirement from AIG. Against the backdrop of avery active CAT season and the ongoing global pandemic, AIG colleagues demonstrated continued resilience and are performing at a high level
delivering value to our stakeholders and excellence in all that we do.
“General Insurance delivered very strong results demonstrating the underwriting discipline now embedded in our culture and the benefits of ourvolatility reduction efforts through a well-articulated risk appetite and reinsurance program that performed well. Net premiums written grew by 11%,driven by Commercial Lines growth of 17%, which was balanced between 18% growth in North America and 15% growth in International reflecting
improved retention, outstanding levels of new business, and a continued strong rate environment. We also reported another quarter of impressive
underwriting profitability, with a combined ratio of 99.7 inclusive of catastrophe losses, and 90.5, as adjusted, which represents a 2.8 point
improvement from the accident year combined ratio, as adjusted, in the third quarter of 2020.
“Life and Retirement was once again a solid contributor to profitability delivering adjusted pre-tax income of $877 million and a return on adjusted
segment common equity of 12.2%.
“In the third quarter we repurchased $1.1 billion of common stock, redeemed $1.5 billion of debt and ended the quarter with $5.3 billion of liquidity, alldemonstrating the strength of our balance sheet and exceptional financial flexibility as we execute against our capital management strategy.
“AIG’s performance in the third quarter and through the first nine months of the year validates the strategy we have been executing on over the last few
years. We have vastly improved the quality of our portfolio by delivering superior risk solutions, we continue to embed operational excellence acrossthe organization, and we recently reached a significant milestone toward making Life and Retirement a standalone company by closing on the sale ofa 9.9% equity stake to Blackstone. AIG is well on its way to becoming a top performing company that delivers sustainable profitable growth over the
long-term.”
For the third quarter of 2021, net income attributable to AIG common shareholders was $1.7 billion, or $1.92 per diluted common share, compared to
net income of $281 million, or $0.32 per diluted common share, in the prior year quarter. The increase was primarily due to net realized gains in thecurrent quarter compared to net realized losses in the prior year quarter and overall strong General Insurance underwriting results, including lower
CATs. These pre-tax increases were partially offset by Life and Retirement, which had higher DAC amortization principally due to the impact of theannual assumption review which was partially offset by the gain from the sale of our retail mutual fund business and higher income tax expense
primarily due to higher income from operations.
AATI was $837 million, or $0.97 per diluted common share, for the third quarter of 2021 compared to $708 million, or $0.81 per diluted common share,in the prior year quarter. The increase was primarily due to strong General Insurance underwriting results, including lower CATs, partially offset bylower APTI from Life and Retirement.
Total consolidated net investment income for the third quarter of 2021 was $3.7 billion, down 2% from $3.8 billion in the prior year quarter primarily due
to lower returns from fair value option equity and fixed income securities, partially offset by strong alternative investment income from private equity.
Total net investment income on an APTI basis* was $3.3 billion, an increase of $78 million compared to the prior year quarter reflecting higher private
equity income.
Book value per common share was $77.03 as of September 30, 2021, an increase of 0.7% from December 31, 2020 and 0.4% from June 30, 2021.
Adjusted book value per common share was $61.80, an increase of 8.4% from December 31, 2020 and 2.9% from June 30, 2021 reflecting growth inretained earnings from net income in excess of dividends and share repurchases. Adjusted tangible book value per share was $55.89, an increase of
9.2% from December 31, 2020 and 3.0% from June 30, 2021.
As of September 30, 2021, AIG Parent liquidity was approximately $5.3 billion. AIG repurchased approximately 20 million shares of AIG common
stock during the third quarter for an aggregate purchase price of $1.1 billion. Additionally, in the third quarter of 2021 AIG redeemed $1.5 billion
aggregate principal amount of 4.875% Notes Due 2022 and repurchased, through cash tender offers, and canceled certain notes and debentures
issued or guaranteed by AIG. AIG’s total debt and preferred stock to total capital leverage at September 30, 2021 was 26.1%, down from 27.0% atJune 30, 2021.
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 December 30, 2021 to stockholders of record at the close of business on December 16, 2021.
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 $0.365625 per depositary share. The dividend is payable on
December 15, 2021 to holders of record at the close of business on November 30, 2021.
FINANCIAL SUMMARY
Three Months Ended
September 30,($ in millions, except per common share amounts)

2020

2021

$ 281

$ 1,660

AIG common shareholders$ 0.32$ 1.92Adjusted pre-tax income (loss)$ 916$ 1,126

General Insurance

416

811

Life and Retirement

1,008

877

Other Operations

(508)

(562)

$ 3,800$ 3,715

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

Net investment income

Net investment income, APTI basis

3,198

3,276

Adjusted after-tax income attributable to AIG commonshareholders

$ 708

$ 837

$ 0.81$ 0.97Weighted average common shares outstanding - diluted (in millions)

873.1

864.0

Return on common equity

1.8

%

10.2

%

Adjusted return on common equity

5.8

%

6.5

%

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

Book value per common share$ 73.86$ 77.03

Adjusted book value per common share$ 56.78$ 61.80

Common shares outstanding (in millions)

861.4

835.8

All comparisons are against the third quarter of 2020, unless otherwise indicated. Refer to the AIG Third Quarter 2021 Financial Supplement, which isposted on AIG's website in the Investors section, for further information.
GENERAL INSURANCE
Three Months Ended September 30,($ in millions)

2020

2021

ChangeGross premiums written$ 8,251$ 9,305

13%

Net premiums written$ 5,924$ 6,590

11%

North America

2,571

3,005

17

North America Commercial Lines

2,186

2,576

18

North America Personal Insurance

385

429

11

International

3,353

3,585

7

International Commercial Lines

1,795

2,071

15

International Personal Insurance

1,558

1,514

(3)

Underwriting income (loss)$ (423)

$ 20

NM

%

North America

(370)

(166)

55

North America Commercial Lines

(153)

(503)

(229)

North America Personal Insurance

(217)

337

NM

International

(53)

186

NM

International Commercial Lines

(148)

(94)

36

International Personal Insurance

95

280

195

Net investment income, APTI basis

$ 839

$ 791

(6)

%

Adjusted pre-tax income

$ 416

$ 811

95

%

4.8

pts

pts

Return on adjusted segment common equity

3.1

%

7.9

%

Underwriting ratios:
North America Combined Ratio (CR)

114.8

105.7

(9.1)

North America Commercial Lines CR

107.0

120.0

13.0

North America Personal Insurance CR

170.5

14.9

(155.6)

International CR

101.7

94.7

(7.0)

International Commercial Lines CR

108.4

104.8

(3.6)

International Personal Insurance CR

94.0

82.2

(11.8)

General Insurance (GI) CR

107.2

99.7

(7.5)

GI Loss ratio

74.6

68.4

(6.2)

(13.5)(9.7)

3.8

Less: impact on loss ratio
Catastrophe losses and reinstatement premiumsptsPrior year development

(0.4)

0.5

0.9

GI Accident year loss ratio, as adjusted

60.7

59.2

(1.5)

GI Expense ratio

32.6

31.3

(1.3)

GI Accident year combined ratio, as adjusted (AYCR)

93.3

90.5

(2.8)

North America AYCR

97.2

91.5

(5.7)

North America Commercial Lines AYCR

94.2

90.5

(3.7)

North America Personal Insurance AYCR

118.6

98.4

(20.2)

International AYCR

90.5

89.6

(0.9)

International Commercial Lines AYCR

88.9

86.8

(2.1)

International Personal Insurance AYCR

92.2

93.0

0.8

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

General Insurance

Net premiums written in the third quarter of 2021 increased 11% (10% on a constant dollar basis) to $6.6 billion from theprior year quarter driven by strong North America Commercial Lines and International Commercial Lines growth of 18%
and 15% (12% on a constant dollar basis), respectively, reflecting strong rate improvement, higher renewal retentions andstrong new business production. Additionally, North America Personal Insurance net premiums written growth of 11%
reflects increases in the Travel and Warranty business driven by increased consumer spending, partially offset by lower
Private Client Group (PCG) business driven by underwriting actions taken to improve our portfolio mix and rate adequacy.
International Personal Insurance net premiums written decreased 3% (down 3% on a constant dollar basis) compared tothe prior year quarter primarily due to underwriting actions taken to improve our portfolio mix and rate adequacy, partially
offset by growth in Travel due to a rebound in travel activity.
Third quarter 2021 APTI increased by $395 million to $811 million from the prior year quarter due to continued
improvement in underwriting results. Underwriting income was $20 million in the third quarter of 2021 compared to anunderwriting loss of $423 million in the prior year quarter. The underwriting income included $628 million of CATs,
predominantly from Hurricane Ida and U.K. and European floods, compared to $790 million in the prior year quarter, which
included $185 million of estimated COVID-19 losses. Despite the elevated level of global catastrophic activity in the third
quarter of 2021, AIG’s losses were mitigated by improved underwriting and enhanced reinsurance protections.
Third quarter 2021 also included favorable net prior year loss reserve development, net of reinsurance (PYD) of $50
million, including $47 million of favorable amortization from the Adverse Development Cover, compared to total unfavorable
PYD of $13 million in the prior year quarter. The third quarter benefited from favorable development on our worldwide
short-tail lines, which included lower emerged claims frequency from accident year 2020, and lower expected ultimate
losses related to 2017 and 2018 wildfires driven largely from subrogation recoveries and continued favorable development
in U.S. Workers Compensation. The favorable PYD is contrasted by reserve strengthening in Global Financial Lines with
North America Financial Lines being primarily attributable to accident years 2016 through 2018 whereas, International
depending on the Region involved, included a broader range of accident years. Subrogation recoveries related to 2018
California wildfires losses in our Personal Insurance business were largely offset by the reversal of recorded reinsurance
recoveries for 2018 in our Commercial Lines business of approximately $206 million, as we no longer reached theattachment point under our North American aggregate CAT cover as a result of the receipt of the subrogation amounts.
General Insurance continued to generate improved underwriting results, with a combined ratio of 99.7, a 7.5 point
decrease from 107.2 in the prior year quarter. The improvement reflects lower CATs and overall strong underwriting results
driven by improvements in both the loss and expense ratios of 6.2 points and 1.3 points, respectively. The General
Insurance accident year combined ratio, as adjusted, was 90.5, an improvement of 2.8 points from the prior year quarterand was comprised of a 59.2 accident year loss ratio, as adjusted*, and an expense ratio of 31.3. The General Insurance
accident year loss ratio, as adjusted, improved by 1.5 points from the prior year quarter reflecting continued improvementin the commercial underwriting business mix and quality of the portfolio. The General Insurance total expense ratio
improved 1.3 points from the prior year quarter reflecting continued general operating expense discipline as we grow theportfolio, including benefits from the AIG 200 program.
Commercial Lines underwriting results continued to show strong improvement due to improved business mix and premium
growth along with continued rate increases. The accident year combined ratio, as adjusted, for North America Commercial
Lines improved 3.7 points to 90.5, and for International Commercial Lines improved 2.1 points to 86.8 compared to theprior year quarter.
Personal Insurance underwriting results also improved driven by North America. The North America Personal Insurance
accident year combined ratio, as adjusted, improved 20.2 points to 98.4 compared to the prior year quarter reflecting
improved attritional PCG loss experience and a rebound in travel insurance premiums.The International Personal Insurance
accident year combined ratio, as adjusted, increased 0.8 points to 93.0 reflecting a 1.5 point increase in the accident year
loss ratio, as adjusted, to 51.9 compared to the prior year quarter, partially offset by a 0.7 point improvement in the
expense ratio to 41.1.
LIFE AND RETIREMENT
Three Months Ended
September 30,($ in millions, except as indicated)

2020

2021

$ 1,008

$ 877

(13)

Individual Retirement

532

292

(45)

Group Retirement

338

316

(7)

Life Insurance

32

134

319

Institutional Markets

106

135

27

Premiums and fees

$ 1,434$ 1,756

22

Individual Retirement

256

311

21

Group Retirement

120

142

18

Life Insurance

736

757

3

Institutional Markets

322

546

70

$ 6,998$ 7,234

3

Adjusted pre-tax income (loss)

Premiums and deposits

Change%%%Individual Retirement

2,702

3,257

21

Group Retirement

1,772

1,831

3

Life Insurance

1,076

1,152

7

Institutional Markets

1,448

994

(31)

$ (1,726)$ (919)47

Individual Retirement*

(769)

95

NM

Group Retirement(957)(1,014)(6)$ 2,332$ 2,435

4

%

12.2

% (3.3)pts

Net flows

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

15.5

%

%

* Includes Retail Mutual Funds and in 2021, excludes $7.0 billion of funds (i) transferred related to the Touchstone sale or (ii) liquidated.
Life and Retirement

Life and Retirement reported APTI of $877 million for the third quarter of 2021, down 13% from $1.0 billion in the prior year
quarter. The third quarter of 2021 included a $166 million unfavorable impact from the annual actuarial assumption update,unfavorable mortality, higher general operating expenses (GOE) and increases in deferred policy acquisition costs
amortization and reserves primarily in Individual Retirement and Group Retirement, partially offset by higher fee income aswell as strong alternative investment income across all segments. Life Insurance APTI of $134 million, increased $102
million from $32 million in the prior year quarter primarily reflecting favorable impacts from the annual actuarial assumption
update, partially offset by unfavorable mortality.
Premiums were $1.0 billion, up from $785 million, or 33%, from the prior year quarter driven by higher pension risk transfer
activity in third quarter of 2021. Premiums and deposits increased 3%, or $236 million, from the prior year quarter to $7.2
billion due to the recovery from broad industry-wide sales disruption resulting from COVID-19 and the increase in pension
risk transfer activity.
Individual and Group Retirement net flows were negative $919 million, a significant improvement of $807 million from theprior year quarter due to a recovery from 2020 sales disruptions from COVID-19. Excluding Retail Mutual Funds, which
was sold in third quarter of 2021, Individual Retirement recorded net inflows of $240 million compared to net outflows of$110 million in the prior year quarter, largely due to a recovery from the broad industry-wide sales disruption resulting fromCOVID-19. In the Group Retirement business, net flows were negative $1.0 billion, slightly elevated than the prior year
quarter reflecting higher surrenders.
OTHER OPERATIONS
Three Months Ended
September 30,($ in millions)
Corporate and Other

2020

2021

$ (395)$ (583)

Change(48)%

Asset Management

27

213

NM

Adjusted pre-tax loss before consolidation and eliminations

(368)

(370)

(1)

Consolidation and eliminations

(140)

(192)

(37)

$ (508)$ (562)(11)

Adjusted pre-tax loss%

Other Operations

Third quarter adjusted pre-tax loss (APTL) was $562 million, including $192 million of reductions from consolidation andeliminations, compared to APTL of $508 million, including $140 million of reductions from consolidation and eliminations, inthe prior year quarter. The increase in consolidation and eliminations APTL reflects the elimination of the insurancecompanies’ net investment income on their investment in consolidated investment entities.
Before consolidation and eliminations, the increase in APTL reflects higher corporate GOE including increases in
performance-based employee compensation, partially offset by higher net investment income and lower corporate interest
expense resulting from year-to-date debt redemption activity.
LIFE AND RETIREMENT SEPARATIONOn October 26, 2020, AIG announced its intention to separate its Life and Retirement business from AIG.
On July 14, 2021, AIG and Blackstone Inc. (Blackstone) announced that they reached a definitive agreement forBlackstone to acquire a 9.9 percent equity stake in SAFG Retirement Services, Inc. (SAFG), which is the holding company
for AIG’s Life and Retirement business, for $2.2 billion in an all cash transaction, subject to adjustment if the final pro
forma adjusted book value is greater or lesser than the target pro forma adjusted book value. As part of this agreement,
AIG also agreed to enter into a long-term asset management relationship with Blackstone to manage an initial $50 billionof Life and Retirement’s existing investment portfolio upon closing of the equity investment, with that amount increasing byincrements of $8.5 billion per year for the next five years beginning in the fourth quarter of 2022, for an aggregate of $92.5
billion. These transactions closed on November 2, 2021. While we currently believe an IPO is the next step in theseparation 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 that a separation will in fact occur. Any
separation transaction will be subject to the satisfaction of various conditions and approvals, including approval by the AIG
Board of Directors, receipt of insurance and other required regulatory approvals, and satisfaction of any applicablerequirements of the Securities and Exchange Commission (SEC).
Additionally, AIG and Blackstone Real Estate Income Trust (BREIT), a long-term, perpetual capital vehicle affiliated withBlackstone, announced on July 14, 2021 that they reached a definitive agreement for BREIT to acquire AIG’s interests in a
U.S. affordable housing portfolio for approximately $5.1 billion, subject to certain adjustments, in an all cash transaction. As
of September 30, 2021, the assets and liabilities related to the Affordable Housing portfolio, $4.3 billion and $2.7 billion,
respectively, are classified as held for sale and are reported in Other assets and Other liabilities within AIG’s Condensed
Consolidated Balance Sheets. This transaction is subject to customary closing conditions and is expected to close in the
fourth quarter of 2021.
CONFERENCE CALL
AIG will host a conference call tomorrow, Friday, November 5, 2021 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 constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of1995. These statements include, but are not limited to, projections, goals and assumptions that are not historical facts, but instead represent only abelief regarding future events, many of which, by their nature, are inherently uncertain and outside AIG’s control. These statements, including
projections, goals and assumptions are often preceded by, followed by or include words such as “will,” “believe,” “anticipate,” “expect,” “intend,” “plan,”“focused on achieving,” “view,” “target,” “goal” or “estimate.” These statements may relate to future actions, future performance or results of current
and anticipated services or products, sales efforts, expense reduction efforts, the outcome of contingencies such as legal proceedings, anticipatedorganizational, business or regulatory changes, the effect of natural catastrophes, including COVID-19, macroeconomic events, anticipateddispositions, 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 AIG’s financial results.
It is possible that AIG’s actual results and financial condition will differ, possibly materially, from the results and financial condition indicated in thesestatements, projections, goals and assumptions. Factors that could cause AIG’s actual results to differ, possibly materially include:AIG's ability to successfully separate the Life and Retirement business and the impact any separation may have on AIG,
its businesses, employees, contracts and customers;
AIG's ability to close the sale of its Affordable Housing portfolio to an affiliate of Blackstone;
the occurrence of catastrophic events, both natural and man-made, including COVID-19, other pandemics, civil unrest andthe effects of climate change;changes in market and industry conditions, including a prolonged global economic recovery, volatility in financial andcapital markets, fluctuations in interest rates, inflationary pressures and disruptions to AIG's operations driven by
COVID-19 and responses thereto, including new or changed governmental policy and regulatory actions;
AIG's ability to effectively execute on the AIG 200 operational programs designed to modernize AIG's operating
infrastructure and enhance user and customer experiences, and AIG’s ability to achieve anticipated cost savings from AIG
200;
the impact of potential information technology, cybersecurity or data security breaches, including as a result of cyberattacks or security vulnerabilities, the likelihood of which may increase due to extended remote business operations as aresult of COVID-19;
availability and affordability of reinsurance;
disruptions in the availability of AIG's electronic data systems or those of third parties;
the impact of COVID-19 generally, including with respect to AIG's business, financial condition and results of operations;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 effectiveness of AIG’s enterprise risk management policies and procedures, including with respect to business
continuity and disaster recovery plans;changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill;
AIG's ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired
businesses;
nonperformance or defaults by counterparties, including Fortitude Reinsurance Company Ltd. (Fortitude Re);the effectiveness of strategies to recruit and retain key personnel and to implement effective succession plans;changes in judgments concerning potential cost-saving opportunities;
concentrations in AIG's investment portfolios;changes to our sources of or access to liquidity;changes in judgments or assumptions concerning insurance underwriting and insurance liabilities;
the requirements, which may change from time to time, of the global regulatory framework to which AIG is subject;significant legal, regulatory or governmental proceedings; 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 September 30, 2021 (which
will be filed with the Securities and Exchange Commission), Part I, Item 2. MD&A of the Quarterly Report on Form 10-Q for
the quarterly period ended June 30, 2021, Part I, Item 2. MD&A of the Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2021, and – Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A of the 2020 Annual Report.
AIG is not under any obligation (and expressly disclaims any obligation) to update or alter any projections, goals, assumptions or other statements,
whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise.
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 Third Quarter 2021 Financial Supplement available in the Investors section of AIG’s website,www.aig.com.
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.
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.
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 sales inducement assets (SIA) 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 a one-time lumpsum payment to former employees;
income and loss from 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, 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);and by excluding the net realized gains (losses) and other charges from noncontrolling interests.
See page 15 for the reconciliation of Net income attributable to AIG to Adjusted After-tax Income Attributable to AIG.
Ratios: AIG, along with most property and casualty insurance companies, uses the loss ratio, 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: both the accident year loss and accident year combined ratios, as adjusted,
exclude catastrophe losses 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 having a net impact on AIG in excess of $10 million each andman-made catastrophe losses, such as terrorism and civil disorders that exceed the $10 million threshold. AIG believes that as adjusted ratios aremeaningful measures of AIG’s underwriting results on an ongoing basis as they exclude catastrophes and the impact of reserve discounting which areoutside 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 ÷ NPEc) General operating expense ratio = General operating expenses ÷ NPEd) Expense ratio = Acquisition ratio + General operating expense ratioe) Combined ratio = Loss ratio + Expense ratio
Catastrophe losses (CATs) and reinstatement premiums = [Loss and loss adjustment expenses incurred – (CATs)] ÷ [NPE +/(-) CYRIPs] – Lossf)
ratio
Accident year loss ratio, as adjusted (AYLR) = [Loss and loss adjustment expenses incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement premiumsg) related to current year catastrophes (CYRIPs) +/(-) RIPs related to prior year catastrophes (PYRIPs) + (Additional) returned premium related to
PYD on loss sensitive business ((AP)RP) + Adjustment for ceded premiums under reinsurance contracts related to prior accident years]h) Accident year combined ratio, as adjusted = AYLR + Expense ratio
Prior year development net of (additional) return premium related to PYD on loss sensitive business = [Loss and loss adjustment expensesi)incurred – CATs – PYD] ÷ [NPE +/(-) CYRIPs +/(-) PYRIPs + (AP)RP] – Loss ratio – CAT ratio
Premiums and deposits: includes direct and assumed amounts received and earned on traditional life insurance policies, group benefit policies 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.
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 more than 80 countries and jurisdictions. These diverse
offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG
common stock is listed on the New York Stock Exchange.
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 September 30,
2020

2021
Noncontrolling

Noncontrolling

Pre-tax

Tax
EffectInterests(d)After-tax Pre-tax

Tax
Effect

$ 368

$ 74

$

-

$ 299

Noncontrolling interests

-

-

(11)

(11)

-

-

(70)

(70)

Pre-tax income/net income attributable to AIG

368

74

(11)

288

2,176

439

(70)

1,667

Interests(d)After-tax$$ 1,737

Pre-tax income/net income, including noncontrollinginterests$ 2,176 $ 439-

Dividends on preferred stock

7

7

Net income attributable to AIG common shareholders

281

1,660

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

-

7

-

(7)

-

35

-

(35)

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

-

8

-

(8)

-

(45)

-

45

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

(15)

(3)

-

(12)

(26)

(5)

-

(21)

SIA related to net realized gains (losses)

(78)

(17)

-

(61)

(9)

(3)

-

(6)

Changes in the fair value of equity securities

(119)

(25)

-

(94)

45

7

-

38

(Gain) loss on extinguishment of debt

(2)

(1)

-

(1)

51

10

-

41

Net investment income on Fortitude Re funds withheld
assets

(458)

(96)

-

(362)

(495)

(103)

-

(392)

Net realized gains on Fortitude Re funds withheld assets

(32)

(7)

-

(25)

(190)

(40)

-

(150)

656

137

-

519

209

44

-

165

Changes in benefit reserves and DAC, VOBA andNet realized losses on Fortitude Re funds withheld
embedded derivative

Net realized (gains) losses(c)

512

89

-

423

(652)

(132)

-

(520)

Income from discontinued operations

-

-

-

(5)

-

-

-

-

(Income) loss from divestitures

24

14

-

10

(102)

(22)

-

(80)

Non-operating litigation reserves and settlements

1

-

-

1

3

-

-

3

amortization changes ceded under retroactive reinsurance
agreements

(30)

(6)

-

(24)

(115)

(23)

-

(92)

Net loss reserve discount (benefit) charge

(31)

(6)

-

(25)

72

15

-

57

-

-

-

-

27

6

-

21

divesting businesses

1

1

-

-

11

3

-

8

Restructuring and other costs

100

21

-

79

104

22

-

82

Non-recurring costs related to regulatory or accountingchanges

19

4

-

15

17

4

-

13

-

-

4

4

-

-

-

-

$ 916

$ 194

(7)

$ 708

Favorable prior year development and related

Pension expense related to a one-time lump sum payment
to former employees
Integration and transaction costs associated with acquiringor

Noncontrolling interests primarily related to net realized
gains (losses) of Fortitude Holdings' standalone results(d)Adjusted pre-tax income/Adjusted after-tax income
attributable
to AIG common shareholders$

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)

Nine Months Ended September 30,
2020

2021

$ 1,126 $ 212

$

(70)

$ 837

Noncontrolling

Noncontrolling

Pre-tax

Tax
EffectInterests(d)After-tax

Pre-tax

Tax
EffectInterests(d)After-tax$ (6,735)$ (918)$$ (5,813)$ 7,051$ 1,234$$ 5,817

Pre-tax income (loss)/net income(loss), including noncontrollinginterests--

Noncontrolling interests

-

-

(78)

(78)

-

-

(175)

(175)

Pre-tax income (loss)/net income(loss) attributable to AIG(6,735)

(918)

(78)

(5,891)

7,051

1,234

(175)

5,642

Dividends on preferred stock22

22

Net income (loss) attributable to
AIG common shareholders(5,913)

5,620

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

-

(204)

-

204

-

901

-

(901)

Deferred income tax valuation
allowance charges(b)

-

(92)

-

92

-

(706)

-

706

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

(24)

(5)

-

(19)

(61)

(12)

-

(49)

SIA related to net realized gains(losses)

205

43

-

162

74

15

-

59

Changes in the fair value of equity
securities

16

3

-

13

36

5

-

31

Loss on extinguishment of debt

15

3

-

12

149

31

-

118

Net investment income on Fortitude
Re funds withheld assets

(574)

(120)

-

(454)

(1,488)(312)-(1,176)

Net realized gains on Fortitude Re
funds withheld assets

(128)

(27)

-

(101)

(536)

(113)

-

(423)

embedded derivative

1,493

313

-

1,180

(117)

(24)

-

(93)

Net realized gains(c)(1,375)(309)-(1,066)(1,220)

(260)

-

(960)

Changes in benefit reserves andDAC, VOBA andNet realized (gains) losses on
Fortitude Re funds withheldIncome from discontinued operations

-

-

-

(4)

-

-

-

-

(Income) loss from divestitures

8,652

1,716

-

6,936

(108)

(23)

-

(85)

Non-operating litigation reserves andsettlements

(5)

(1)

-

(4)

3

-

-

3

amortization changes ceded underretroactive reinsurance agreements

(71)

(15)

-

(56)

(199)

(41)

-

(158)

Net loss reserve discount charge

41

9

-

32

62

13

-

49

-

-

-

-

27

6

-

21

divesting businesses

7

2

-

5

55

12

-

43

Restructuring and other costs

324

68

-

256

304

64

-

240

Non-recurring costs related toregulatory or accounting changes

46

10

-

36

58

12

-

46

-

-

63

63

-

-

-

-

$ 1,887

$ 476

(15)

$ 1,374$ 4,090$ 802

Favorable prior year development
and related

Pension expense related to a
one-time lump sum payment
to former employees
Integration and transaction costs
associated with acquiring or

Noncontrolling interests primarily
related to net realized gains(losses) of Fortitude Holdings'
standalone results(d)Adjusted pre-tax income/Adjusted
after-tax income attributable
to AIG common shareholders

$

$

(175)

$ 3,091(a) Nine months ended September 30, 2021 includes the completion of audit activity by the Internal Revenue Service (IRS). Nine months ended
September 30, 2020 includes the write-down of net operating loss deferred tax assets in certain foreign jurisdictions, which is offset by valuation
allowance release.
(b) Nine months ended September 30, 2021 as well as three and nine months ended September 30, 2020 include valuation allowance establishedagainst a portion of certain tax attribute carryforwards of AIG's U.S. federal consolidated income tax group, as well as valuation allowance changes incertain 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) Prior to June 2, 2020, noncontrolling interests was primarily due to the 19.9 percent investment in Fortitude Group Holdings, LLC (Fortitude
Holdings) by an affiliate of The Carlyle Group L.P. (Carlyle), which occurred in the fourth quarter of 2018. Carlyle was allocated 19.9 percent ofFortitude Holdings’ standalone financial results through the June 2, 2020 closing date of the sale of a majority of the interests in Fortitude Holdings.
Fortitude Holdings’ results were mostly eliminated in AIG’s consolidated income from continuing operations given that its results arose fromintercompany transactions. Noncontrolling interests was calculated based on the standalone financial results of Fortitude Holdings. The mostsignificant component of Fortitude Holdings’ standalone results was the change in fair value of the embedded derivatives which changes withmovements in interest rates and credit spreads, and which was recorded in net realized gains and losses of Fortitude Holdings. In accordance with
AIG's adjusted after-tax income definition, realized gains and losses are excluded from noncontrolling interests. Subsequent to the Majority Interest
Fortitude Sale, AIG owns 3.5 percent of Fortitude Holdings and no longer consolidates Fortitude Holdings in its financial statements as of such date.
The minority interest in Fortitude Holdings is carried at cost within AIG’s Other invested assets, which was $100 million as of September 30, 2021.
American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per common share data)

Summary of Key Financial Metrics
Three Months Ended September 30,
Earnings per common share:

2020

2021

$ 0.31$ 1.95

NM

0.01

-

$ 0.32Nine Months Ended September 30,% Inc. (Dec.)

2020

2021

% Inc. (Dec.)$ (6.80)$ 6.53

NM

NM

-

-

NM

$ 1.95NM$ (6.80)$ 6.53NM$ 0.31$ 1.92NM$ (6.80)$ 6.45

NM

0.01

-

NM

-

-

NM

$ 0.32$ 1.92NM$ (6.80)$ 6.45NM$ 0.81$ 0.9719.8$ 1.57$ 3.55

126.1

Basic

867.7

852.8

869.6

861.2

Diluted (a)

873.1

864.0

869.6

871.0

Basic
Income (loss) from continuing operations
Income from discontinued operations
Net income (loss) attributable to AIG commonshareholders%%

DilutedIncome (loss) from continuing operations
Income from discontinued operations
Net income (loss) attributable to AIG commonshareholders

Adjusted after-tax income attributable to AIG
commonshareholders per diluted share (a)%Weighted average shares outstanding:%(a) For the nine-month period ended September 30, 2020, because we reported a net loss attributable to AIG common shareholders, all common
stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts. However, because
we reported adjusted after-tax income attributable to AIG common shareholders, the calculation of adjusted after-tax income per diluted share
attributable to AIG common shareholders includes 4,432,369 dilutive shares for the nine-month period ended September 30, 2020.

Reconciliation of Book Value per Common Share

As of period end:

September 30, 2020 December 31, 2020 June 30, 2021 September 30, 2021

Total AIG shareholders' equity$

64,108$ 66,362$ 66,083$

64,863

Less: Preferred equity

485

485

485

485

Total AIG common shareholders' equity (a)63,62365,87765,59864,378Less: Accumulated other comprehensive income (AOCI)

10,97813,511

10,2098,606

Funds Withheld Assets

4,392

4,657

3,341

2,966

Less: Deferred tax assets (DTA)*

8,123

7,907

7,374

7,083

48,914$ 49,116$ 51,356

Goodwill

4,026

4,074

4,083

4,058

Value of business acquired

122

126

121

117

Value of distribution channel acquired

507

497

477

467

Other intangibles

322

319

305

302

Total intangible assets

4,977

5,016

4,986

4,944

43,937$ 44,100$ 46,370

861.4

861.6

854.9

September 30, % Inc.

December 31, % Inc.

June 30, % Inc.

September 30,

As of period end:

2020

(Dec.)

2020(Dec.)

2021(Dec.)

2021

Book value per common share (a÷d)$ 73.86

4.3% $ 76.46

0.7% $ 76.73

0.4% $ 77.03

Add: Cumulative unrealized gains and losses related to Fortitude Re

Total adjusted AIG common shareholders' equity (b)$$51,655

Less: Intangible assets:

Total adjusted tangible common shareholders' equity (c)Total common shares outstanding (d)$$46,711835.8

Adjusted book value per common share (b÷d)

56.78

8.8

57.01

8.4

60.07

2.9

61.80

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

51.01

9.6

51.18

9.2

54.24

3.0

55.89

Reconciliation of Return On Common Equity

Three Months Ended September 30,
2020

2021

Actual or Annualized net income attributable to AIG common shareholders (a)$ 1,124$ 6,640

Actual or Annualized adjusted after-tax income attributable to AIG common shareholders (b)$ 2,832$ 3,348

Average AIG common shareholders' equity (c)$ 62,686$ 64,988

Less: Average AOCI

10,0749,408

Add: Average cumulative unrealized gains and losses related to Fortitude Re Funds Withheld Assets

4,304

3,154

Less: Average DTA*

8,383

7,229

$ 48,533$ 51,505

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

1.8

%

10.2

%

Adjusted return on common equity (b÷d)

5.8

%

6.5

%

* 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
September 30,

2020

2021

Net investment income per Consolidated Statements of Operations$ 3,800$ 3,715

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

(15)

(14)

Changes in the fair value of equity securities

(119)

45

Net investment income on Fortitude Re funds withheld assets

(458)

(495)

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

(10)

25

$ 3,198$ 3,276

Total Net investment income - APTI Basis
Net Premiums Written - Change in Constant Dollar

Three Months Ended September 30, 2021
International General Insurance

International -General Insurance
Commercial Lines Personal Insurance

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

10

Foreign exchange effect1

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

11

%

12

%

3
%

15

%

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
September 30,

Total General Insurance%-

American International Group, Inc.

2020

(3)

2021

(3)

%

Combined ratio

107.2

99.7

Catastrophe losses and reinstatement premiums(13.5)(9.7)

Prior year development

(0.4)

0.5

Accident year combined ratio, as adjusted

93.3

90.5

Combined ratio

114.8

105.7

Catastrophe losses and reinstatement premiums(23.1)(15.2)

Prior year development

5.5

1.0

Accident year combined ratio, as adjusted

97.2

91.5

Combined ratio

107.0

120.0

Catastrophe losses and reinstatement premiums(19.1)(15.2)

Prior year development

6.3(14.3)

Accident year combined ratio, as adjusted

94.2

90.5

Combined ratio

170.5

14.9

Catastrophe losses and reinstatement premiums(51.3)(15.2)

Prior year development

(0.6)

98.7

Accident year combined ratio, as adjusted

118.6

98.4

Combined ratio

101.7

94.7

Catastrophe losses and reinstatement premiums

(6.4)

(5.1)

Prior year development

(4.8)

-

North America

North America - Commercial Lines

North America - Personal Insurance

International

Accident year combined ratio, as adjusted

90.5

89.6

Combined ratio

108.4

104.8

Catastrophe losses and reinstatement premiums

(7.6)

(7.1)

Prior year development(11.9)(10.9)

Accident year combined ratio, as adjusted

88.9

86.8

Loss ratio

52.2

41.1

Catastrophe losses and reinstatement premiums

(4.8)

(2.6)

Prior year development

3.0

13.4

Accident year loss ratio, as adjusted

50.4

51.9

Combined ratio

94.0

82.2

Catastrophe losses and reinstatement premiums

(4.8)

(2.6)

Prior year development

3.0

13.4

Accident year combined ratio, as adjusted

92.2

93.0

International - Commercial Lines

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
September 30,
2020

2021

Adjusted pre-tax income

$ 416

$ 811

Interest expense on attributed financial debt

146

149

Adjusted pre-tax income including attributed interest expense

270

662

Income tax expense

70

153

Adjusted after-tax income

200

509

Dividends declared on preferred stock33

Adjusted after-tax income attributable to common shareholders

$ 197

$ 506

Ending adjusted segment common equity$ 25,085$ 25,884

Average adjusted segment common equity$ 25,140$ 25,679

Return on adjusted segment common equity

3.1

Total segment shareholder’s equity%

7.9$ 25,800$ 26,381

Less: Preferred equity

193

201

Total segment common equity

25,607

26,180Less: Accumulated other comprehensive income (AOCI)

828

492

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

306

196

$ 25,085$ 25,884

Total adjusted segment common equity

Reconciliation of Life and Retirement Return on Adjusted Segment Common Equity

Three Months Ended
September 30,

Adjusted pre-tax income

2020

2021

$ 1,008$ 877%

Interest expense on attributed financial debt

72

75

Adjusted pre-tax income including attributed interest expense

936

802

Income tax expense

189

160

Adjusted after-tax income

747

642

Dividends declared on preferred stock22

Adjusted after-tax income attributable to common shareholders

$ 745

$ 640

Ending adjusted segment common equity$ 19,421$ 21,235

Average adjusted segment common equity$ 19,261$ 20,962

Return on adjusted segment common equity

15.5

Total segment shareholder’s equity

%

12.2

$ 27,937$ 29,131

Less: Preferred equity

129

143

Total segment common equity

27,80828,988Less: Accumulated other comprehensive income (AOCI)

12,425

10,577

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

4,038

2,824

$ 19,421$ 21,235

Total adjusted segment common equity
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
September 30,
2020
Individual Retirement:

2021

%

Premiums

$ 35

$ 66

Deposits

2,670

3,190

Other

(3)

1

$ 2,702$ 3,257$ 5$ 7

Total premiums and deposits

Group Retirement:
Premiums
Deposits

1,767

1,824

Other

-

-

$ 1,772$ 1,831

Premiums

$ 470

$ 469

Deposits

394

403

Other

212

280

$ 1,076$ 1,152

$ 275

$ 499

Total premiums and depositsLife Insurance:

Total premiums and deposits

Institutional Markets:
Premiums
Deposits

1,167

488

Other

6

7

$ 1,448

$ 994

$ 785

$ 1,041

Total premiums and deposits

Total Life and Retirement:
Premiums
Deposits

5,998

5,905

Other

215

288

Total premiums and deposits$ 6,998$ 7,234

View source version on businesswire.com: https://www.businesswire.com/news/home/20211104006167/en/
Quentin McMillan (Investors): quentin.mcmillan@aig.com
Claire Talcott (Media): claire.talcott@aig.com
Source: American International Group, Inc.