AIG Reports Third Quarter 2023 Results
November 1, 2023 at 4:16 PM EDT
Net income per diluted share was $2.81, and adjusted after-tax income* (AATI) per diluted share was $1.61, an
increase of 92% from the prior year quarter
General Insurance combined ratio was 90.5%, an improvement of 680 basis points from the prior year quarter,
including 6.9 points of catastrophe losses and 2.7 points of favorable prior year development (PYD), net ofreinsurance and prior year premiums
General Insurance accident year combined ratio, as adjusted* (AYCR) was 86.3%, an improvement of 210 basis
points from the prior year quarter, driven by the outstanding performance of the Commercial Lines AYCR of 81.7%
General Insurance net premiums written (NPW) increased 1% year-over-year, or 9% on a comparable basis*†,driven by 16% growth in Personal Insurance and 6% growth in Commercial Lines
Life and Retirement adjusted pre-tax income (APTI) was $971 million, up 24% from the prior year quarter,
benefiting from continued growth in net investment spread
Returned over $1 billion to shareholders through $785 million of common stock repurchases and $261 million ofdividends in the third quarter
On November 1, AIG announced the successful closing of the sale of Validus Re to RenaissanceRe, simplifying
our portfolio and allowing us to accelerate capital management plans
On October 31, Corebridge announced the closing of the sale of Laya Healthcare Limited to AXA for €650 million,
the net proceeds from which will be distributed by a special dividend of approximately $730 million to Corebridge
shareholders
THIRD QUARTER 2023 NOTEWORTHY ITEMSGeneral Insurance APTI of $1.4 billion increased $617 million from the prior year quarter, driven by higher underwriting
income as a result of an improved accident year loss ratio, higher favorable PYD and increased net investment income.
General Insurance underwriting results for the current quarter exclude Crop Risk Services (CRS), the sale of which closed
on July 3, 2023.
Life and Retirement APTI increased $187 million from the prior year quarter to $971 million, driven by continued spread
expansion and strong sales, particularly in Fixed Index Annuities.
Net income attributable to AIG common shareholders was $2.0 billion compared to $2.7 billion in the prior year quarter, or$2.81 per diluted common share compared to $3.55 per diluted common share.
AATI was $1.2 billion compared to $0.6 billion in the prior year quarter, or $1.61 per diluted common share compared to$0.84 per diluted common share, reflective of improved results across General Insurance, Life and Retirement and Other
Operations, and a 7% reduction in weighted average diluted shares outstanding.
Annualized return on common equity (ROCE) was 19.8% and annualized adjusted ROCE* was 8.5%. Annualized adjusted
ROCE was 12.4% for General Insurance and 11.4% for Life and Retirement.
* 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.
† Net premiums written on a comparable basis reflects year-over-year comparison on a constant dollar basis adjusted for the International lag
elimination, the sale of Crop Risk Services (CRS) and the sale of Validus Re. Refer to page 18 for more detail.

NEW YORK--(BUSINESS WIRE)--Nov. 1, 2023-- American International Group, Inc. (NYSE: AIG) today reported financial results for the third quarter
ended September 30, 2023.
AIG Chairman & Chief Executive Officer Peter Zaffino said: “In the third quarter, AIG delivered exceptional results driven by continued improvement inunderwriting profitability and an outstanding quarter in our Commercial Lines business with an 81.7% accident year combined ratio, as adjusted. This
quarter’s adjusted after-tax income per diluted share of $1.61 increased 92% from the prior year quarter. Our relentless focus on our strategic priorities
has enabled us to accelerate our execution and generate significant sustainable value for shareholders and other stakeholders.
“On November 1, we announced the successful closing of the sale of Validus Re to RenaissanceRe for which we received total consideration of $3.3
billion in cash, including a pre-closing dividend, and approximately $275 million in RenaissanceRe stock. This sale significantly contributes to ourefforts to streamline our business model, simplify our portfolio and further reduce volatility.
“Our continued attention to underwriting excellence and portfolio optimization has manifested in outstanding results for General Insurance. The
General Insurance combined ratio improved to 90.5%. The combined ratio included $462 million of total catastrophe-related charges, or 6.9 loss ratio

points. Accident year combined ratio, as adjusted, of 86.3% represents an improvement of 210 basis points from the prior year quarter. Additionally,
the third quarter results reflect favorable prior year reserve development, net of reinsurance and prior year premiums, of $210 million, or a 2.7 loss
ratio point benefit.
“Our continued growth across the portfolio was impressive in the third quarter. General Insurance net premiums written increased 1% year-over-year,
or 9% on a comparable basis†, driven by 16% growth in Personal Insurance and 6% growth in Commercial Lines. North America Commercial pricing,which includes rate and exposure, increased 9% excluding Workers’ Compensation, while International Commercial pricing increased 6%
year-over-year. Global Commercial pricing increased 8% excluding Workers’ Compensation and remains above loss cost trend.
“Life & Retirement also delivered solid third-quarter results, which were attributable to continued spread expansion and strong Fixed Index Annuities
sales which exceeded $2 billion for the third consecutive quarter. Base net investment income continued to see benefits from the higher interest rateenvironment and Individual and Group Retirement produced a 41 basis point base spread expansion year-over-year.
“Corebridge continues to make significant progress in simplifying its portfolio. In September, Corebridge announced the sale of AIG Life Limited to
Aviva plc for a consideration of £460 million. On October 31, Corebridge closed the sale of Laya Healthcare to AXA for €650 million, the net proceedsfrom which will be distributed by a special dividend of approximately $730 million to Corebridge shareholders of record. These transactions will enable
Corebridge to concentrate on U.S. Life & Retirement solutions where it has proven market strength and distribution capabilities.”† Net premiums written on a comparable basis reflects year-over-year comparison on a constant dollar basis adjusted for the International lag

elimination, the sale of CRS and the sale of Validus Re. Refer to page 18 for more detail.
For the third quarter of 2023, net income attributable to AIG common shareholders was $2.0 billion, or $2.81 per diluted common share, compared to$2.7 billion, or $3.55 per diluted common share, in the prior year quarter. The decline was primarily driven by a decrease in net realized gains, bothincluding and excluding Fortitude Re funds withheld assets and embedded derivative, partially offset by higher General Insurance underwriting income
and total net investment income. The decrease in net income was also attributable to lower ownership in Corebridge following the Corebridge
secondary offering in June.
AATI was $1.2 billion, or $1.61 per diluted common share, for the third quarter of 2023 compared to $0.6 billion, or $0.84 per diluted common share, inthe prior year quarter. The increase in AATI was due to higher underwriting income in General Insurance, higher net investment income and better
results in Other Operations, partially offset by an increase in adjusted income tax expenses as well as an increase in non-controlling interest expense
due to the Corebridge secondary offering. The third quarter adjusted effective tax rate was 26.3% compared to 20.5% in the prior year quarter, driven
by higher foreign income, which is taxed at rates higher than the U.S. federal income tax rate of 21%, and tax adjustments related to prior year tax
returns.
Total net investment income for the third quarter of 2023 was $3.6 billion, an increase of 33% from $2.7 billion in the prior year quarter, primarily driven
by higher income from fixed maturity securities and loans due to higher reinvestment rates and improved alternative investment income compared tolosses from both the hedge fund and private equity portfolios in the prior year quarter. Total net investment income on an APTI basis* was $3.3 billion,
an increase of $747 million from the prior year quarter, reflecting the same trends.
Book value per common share was $56.06 as of September 30, 2023, a decrease of 4% from June 30, 2023, driven by an increase in accumulated
other comprehensive loss (AOCL) due to higher interest rates, and an increase of 2% from December 31, 2022, driven by the net impact of share
repurchases. Adjusted book value per common share* was $78.17, an increase of approximately 3% compared to both June 30, 2023 and December
31, 2022, primarily driven by share repurchases. Adjusted tangible book value per common share* was $72.62, an increase of 4% from June 30, 2023
and an increase of 5% from December 31, 2022, both primarily driven by the net impact of share repurchases.
In the third quarter of 2023, AIG repurchased $785 million of common stock, or approximately 14 million shares, paid $261 million of common andpreferred dividends and redeemed Validus debt for $289 million, inclusive of the loss on extinguishment of debt. AIG also received gross proceeds of$234 million from the sale of CRS. AIG parent liquidity was $3.6 billion as of September 30, 2023. Total debt and preferred stock to total capital ratio at
September 30, 2023 was 33.7%, up from 32.3% at June 30, 2023, primarily driven by an increase in AOCL. Excluding AOCL adjusted for cumulative
unrealized gains and losses related to Fortitude Re funds withheld assets, the total debt and preferred stock to total capital ratio* was 25.9% at
September 30, 2023, relatively flat compared to June 30, 2023.
On November 1, 2023, the AIG Board of Directors declared a quarterly cash dividend on AIG common stock of $0.36 per share. The dividend ispayable on December 28, 2023 to stockholders of record at the close of business on December 14, 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
December 15, 2023 to holders of record at the close of business on November 30, 2023.
FINANCIAL SUMMARY

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

2022

2023

Net income attributable to AIG common shareholders$ 2,741$ 2,020

Net income per diluted share attributable to AIG common shareholders$ 3.55$ 2.81

Adjusted pre-tax income (loss)$ 920$ 1,873

General Insurance

750

1,367

Life and Retirement

784

971

Other Operations(614

Net investment income
Net investment income, APTI basis

Adjusted after-tax income attributable to AIG common shareholders

)

(465

$ 2,668$ 3,556

2,535

3,282

$ 644

$ 1,158

Adjusted after-tax income per diluted share attributable to AIG common shareholders $ 0.84

$ 1.61)

Weighted average common shares outstanding - diluted (in millions)

771.1

718.7

Return on common equity

25.9

%

19.8

%

Adjusted return on common equity

4.6

%

8.5

%

Book value per common share$ 52.76$ 56.06

Adjusted book value per common share$ 74.90$ 78.17

Common shares outstanding (in millions)

747.2

704.6

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

2022

2023

ChangeGross premiums written$ 9,238$ 8,870(4)%

Net premiums written$ 6,403$ 6,462

1

North America

3,138

3,151

—

North America Commercial Lines

2,757

2,544

(8

North America Personal Insurance

381

607

59

International

3,265

3,311

1

International Commercial Lines

1,992

2,038

2

International Personal Insurance

1,273

1,273

—

Underwriting income (loss)

$ 168

$ 611

264

%

)

%

North America

(439

)

235

NM

North America Commercial Lines

(374

)

292

NM

North America Personal Insurance

(65

)

(57

International

607

376

(38

)

International Commercial Lines

469

339

(28

)

International Personal Insurance

138

37

(73

)

Net investment income, APTI basis

$ 582

$ 756

30

%

Adjusted pre-tax income$ 750$ 1,367

82

%

12.4

% 5.7

pts

Return on adjusted segment common equity

6.7

%

)

12

Underwriting ratios:
North America Combined Ratio (CR)

114.0

92.3

(21.7 ) pts

North America Commercial Lines CR

113.6

88.9

(24.7 )

North America Personal Insurance CR

116.4

113.0

(3.4

International CR

81.4

88.7

7.3

International Commercial Lines CR

75.4

83.4

8.0

International Personal Insurance CR

89.8

97.2

7.4

)

General Insurance (GI) CR

97.3

90.5

(6.8

)

GI Loss ratio

67.5

59.6

(7.9

) pts

Less: impact on loss ratio
Catastrophe losses and reinstatement premiums

(9.8

)

(6.9

)

2.9

Prior year development, net of reinsurance and prior year premiums

0.9

2.7

1.8

GI Accident year loss ratio, as adjusted

58.6

55.4

(3.2

GI Expense ratio

29.8

30.9

1.1

GI Accident year combined ratio, as adjusted

88.4

86.3

(2.1

)

North America AYCR

88.2

86.6

(1.6

) pts

North America Commercial Lines AYCR

84.6

83.0

(1.6

)

North America Personal Insurance AYCR

112.8

108.4

(4.4

)

International AYCR

88.6

86.0

(2.6

)

International Commercial Lines AYCR

80.4

79.7

(0.7

)

International Personal Insurance AYCR

99.9

95.9

(4.0

)

)

Accident year combined ratio, as adjusted (AYCR):

General Insurance

On July 3, 2023, AIG closed the sale of CRS for a pre-tax gain of $126 million. On November 1, 2023, AIG closed the saleof Validus Re. As a result of the sale of CRS, its premiums and underwriting results were not included in General
Insurance third quarter 2023 results.
Third quarter 2023 NPW of $6.5 billion increased 1% from the prior year quarter, or 9% on a comparable basis†, driven by
16% growth in Personal Insurance and 6% growth in Commercial Lines. North America Commercial Lines NPW declined
8% as reported, or grew 5% from the prior year quarter on a comparable basis†, attributable to positive rate changes,
higher renewal retentions and strong new business production in Lexington and Retail Property, partially offset by lower
Financial Lines premiums reflecting our continued underwriting discipline. International Commercial Lines delivered 2%
NPW growth from the prior year quarter, or 7% on a comparable basis†, attributable to continued positive rate changes,
strong retention, and robust new business production, partially offset by a decrease in Financial Lines. Global Personal
Insurance NPW increased 14% from the prior year quarter, or 16% on a comparable basis†, primarily driven by Private
Client Select resulting from changes in our reinsurance program, as well as growth in Travel and Personal Property.
Third quarter 2023 underwriting income increased $443 million from the prior year quarter to $611 million, and included$462 million of total catastrophe-related charges, representing 6.9 loss ratio points, of which $367 million was in North
America, mainly attributable to the Lahaina Wildfire and Hurricane Idalia, and $95 million in International. Third quarter
2023 catastrophe-related charges of $462 million were down 29% compared to third quarter 2022 catastrophe-related
charges of $655 million, which included losses from Hurricane Ian. Third quarter 2023 also included favorable PYD of $139
million compared to favorable PYD of $72 million in the prior year quarter. The development in the third quarter 2023 waslargely driven by favorable development on U.S. Workers’ Compensation business, partially offset by unfavorable

development on UK/Europe Casualty and UK Financial Lines.
The combined ratio improved 6.8 points from the prior year quarter to 90.5%, driven by a 7.9 point decrease in the loss
ratio to 59.6%. The AYCR improved 2.1 points from the prior year quarter to 86.3%, driven by a 3.2 point decrease in theaccident year loss ratio, as adjusted* (AYLR) to 55.4%, reflecting continued earn-in of premium rate increases in excess ofloss cost trends and continued benefit from the business mix shift, coupled with our execution on portfolio management
strategies focusing on risk selection and improved terms and conditions. The expense ratio was 30.9%, a 1.1 point
increase from the prior year quarter, largely from the business mix shift impact on the acquisition ratio.
The North America Commercial Lines combined ratio improved 24.7 points from the prior year quarter to 88.9%, driven byfavorable PYD compared to unfavorable PYD in the prior year quarter as well as lower catastrophe losses. The AYCR
improved 1.6 points to 83.0%, driven by a 4.7 point improvement in the AYLR to 57.8%. International Commercial Linescombined ratio increased 8.0 points from the prior year quarter to 83.4%, driven by unfavorable PYD. The AYCR improved
0.7 point to 79.7% due to a decrease in the acquisition ratio, mainly attributable to changes in the business mix.
The North America Personal Insurance combined ratio improved 3.4 points from the prior year quarter to 113.0% and the
AYCR improved 4.4 points to 108.4%, primarily driven by the expense ratio improving 8.4 points to 46.0%. The
International Personal Insurance combined ratio increased 7.4 points from the prior year quarter to 97.2%, driven by adecrease in favorable PYD. The AYCR improved 4.0 points to 95.9%, driven by a 5.6 point improvement in the AYLR to54.5%, as the prior year quarter had elevated losses related to COVID-19 within Accident & Health.
Annualized return on adjusted segment common equity* for the third quarter and year-to-date were 12.4% and 12.0%,
respectively, compared to 6.7% and 10.3% in the prior year.
† Net premiums written on a comparable basis reflects year-over-year comparison on a constant dollar basis adjusted for the International lag
elimination, the sale of CRS and the sale of Validus Re. Refer to page 18 for more detail.

*These measures are not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measuresand 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.
LIFE AND RETIREMENT
Three Months Ended
September 30,($ in millions, except as indicated)

2022

2023

ChangeAdjusted pre-tax income

$ 784

$ 971

24

Individual Retirement

377

572

52

Group Retirement

193

191

(1

Life Insurance

131

133

2

Institutional Markets

83

75

(10

)

Premiums and fees

$ 2,133$ 1,512(29)%

Individual Retirement

248

211

(15

)

Group Retirement

104

108

4

Life Insurance

928

946

2

Institutional Markets

853

247

(71

%

)

)

Premiums and deposits$ 8,894$ 9,248

4

Individual Retirement

3,792

3,961

4

Group Retirement

2,039

1,831

(10

Life Insurance

1,166

1,200

3

Institutional Markets

1,897

2,256

19

$ (2,931 )NM
NM

Net flows

$ (92

)

Individual Retirement

696

(743

Group Retirement(788 )(2,188 )Net investment income, APTI basis$ 2,004

Return on adjusted segment common equity 9.7

%

)

%

)

%

(178 )$ 2,465

23

%

11.4

% 1.7

pts

Life and Retirement

Life and Retirement reported APTI of $971 million for the third quarter of 2023, up 24% from $784 million in the prior year
quarter. The increase was primarily due to higher base portfolio spread income as a result of improved base portfolio yields
and higher alternative investment income. Combined base net investment spreads in Individual and Group Retirement
continued to widen with a 41 basis point improvement year-over-year.
Premiums declined 42% from the prior year quarter to $0.8 billion due to lower pension risk transfer volumes. Premiums
and deposits* increased 4% to $9.2 billion. Fixed Index Annuities continued to be the top driver of strong sales andInstitutional Markets also had strong sales, supported by $1.9 billion of new guaranteed investment contracts, partially
offset by lower volume of Variable Annuities and pension risk transfer deals.
Annualized return on adjusted segment common equity* for the third quarter and year-to-date were both 11.4% compared
to 9.7% and 10.5%, respectively, in the prior year.
During the third quarter, Corebridge returned $192 million to shareholders through approximately $146 million of common
stock dividends and $46 million in share repurchases.
OTHER OPERATIONS
Three Months Ended
September 30,($ in millions)

2022

2023

ChangeCorporate and Other$ (518 ) $ (421 ) 19

Asset Management Group

51

(47

) NM

Adjusted pre-tax loss before consolidation and eliminations(467 )(468 )—%

Consolidation and eliminations
Adjusted pre-tax loss

(147 )3NM$ (614 ) $ (465 ) 24%

Other Operations

Other Operations adjusted pre-tax loss (APTL) of $465 million improved $149 million, or 24%, from the prior year quarter,
primarily due to the impact of Variable Interest Entities (VIEs), in addition to improved results in Corporate and Other.
Corporate and Other APTL improved $97 million, or 19%, from the prior year quarter, largely due to lower general
operating expenses, higher income from parent short-term investments, and the absence of mark-to-market losses on alegacy investment portfolio that was sold in the fourth quarter of 2022. The improvement was partially offset by higher
interest expenses related to Corebridge financial debt compared to the third quarter of 2022.
The Asset Management Group (AMG), which includes the consolidated results of VIEs, recorded adjusted pre-tax loss of$47 million, reflecting a $98 million decrease from the prior year quarter, largely due to lower interest income and net
losses associated with VIEs compared to net gains in the prior year quarter.
Changes in consolidation and eliminations were attributable to elimination of intercompany net investment income of VIEs
that are consolidated by AMG within Other Operations whereby the insurance subsidiaries report as net investment income
for their investment in consolidated VIEs included in AMG. The third quarter of 2023 included the elimination of net losses
compared to modest net gains in the prior year quarter.
CONFERENCE CALL
AIG will host a conference call tomorrow, Thursday, November 2, 2023 at 8:30 a.m. ET to review these results. The call is open to the public and canbe accessed 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, a potential U.S. federal government shutdown and geopolitical events
or conflicts, including the conflict between Russia and Ukraine and the conflict in Israel and the surrounding areas;
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 September 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’s 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 Third 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) isused 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 value

of 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 16 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 ratio = [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 ratio = [Loss and loss adjustment expenses incurred –CATs – PYD] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes +/(-) Prior year premiums] – Loss ratio – CATs
and reinstatement premiums ratio.
Premiums and deposits: includes direct and assumed amounts received and earned on traditional life insurance policies, group benefit policies andlife‑contingent payout annuities, as well as deposits received on universal life, investment‑type annuity contracts, Federal Home Loan Bank 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 September 30,
2022

2023
Total
Tax

Non-

Total Tax Non-

(Benefit) controlling
Pre-tax
Pre-tax income/net income, including noncontrollinginterests$ 3,904

Charge$ 817

Pre-tax income/net income attributable to AIG

3,904

817

(Benefits) controlling

Interests(d) Tax$ —Noncontrolling interests

After

(339

)

(339

(339

)

2,748

Interests(d) Tax

Pre-tax Charge$ 3,087$ 3,568

$ 821

$ —

)
3,568

After

821

$ 2,747(720)(720 )

(720

)

2,027

Dividends on preferred stock

7

7

Net income attributable to AIG common shareholders

2,741

2,020

Adjustments:
Changes in uncertain tax positions and other tax
adjustments

2

Deferred income tax valuation allowance (releases)
charges

(8

—

(2

)

—

8

)

15

—

(15

)

52

—

(52

)

1

—

5

—

(330 )

—

(2

)

—

(32

)

—

17

—

(209 )—

179

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

(6

) (1

)

—

(5

)

6

Change in market risk benefit, net(a)

(435

) (91

)

—

(344

)

(418

) (88

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

(2

)

—

(2

)

(2

)

Changes in the fair value of equity securities

(16

) (3

—

(13

)

(40

) (8

Loss on extinguishment of debt

—

—

—

—

21

4

Net investment income on Fortitude Re funds withheld
assets

(155

) (32

—

(123

(264

) (55

Net realized losses on Fortitude Re funds withheld assets

86

17

—

69

227

48

Net realized gains on Fortitude Re funds withheld
embedded derivative(1,757 ) (369)—

(1,388 )(1,137 ) (239)—(898 )Net realized gains(b)

(846

)

—

(674

(133

)

—

(66

—

) (172

)

)

)

)

)

—

) (67

)

)

)

Net gain on divestitures and other

(6

) (1

)

—

(5

)

(101

) (21

Non-operating litigation reserves and settlements

(3

) (1

)

—

(2

)

—

—

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

(62

) (13

)

—

(49

)

(75

) (16

Net loss reserve discount charge

10

2

—

8

5

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

—

—

—

—

Integration and transaction costs associated with acquiring
or divesting businesses

52

11

—

Restructuring and other costs

147

29

Non-recurring costs related to regulatory or accountingchanges

9

2

—

(80

—

—

—

(59

1

—

4

8

2

—

6

41

65

13

—

52

—

118

132

27

—

105

—

7

11

3

—

8

259

259

505

505

$ (80

) $ 644$ (215) $ 1,158

Noncontrolling interests(d)Adjusted pre-tax income/Adjusted after-tax income
attributable to AIG common shareholders

$ 920

$ 189

$ 1,873

)

)

$ 493

)

)

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,
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$ 13,543 $ 2,816

Noncontrolling interests
Pre-tax income/net income attributable to AIG
Dividends on preferred stock

13,5432,816$ —$ 10,726 $ 5,204(1,051)(1,051)(1,051)

9,675
22

5,204

$ 853

853

After

Interests(d) Tax$ —$ 4,351

(801)

(801)

(801)

3,550
22

Net income attributable to AIG common shareholders

9,653

3,528

Adjustments:
Changes in uncertain tax positions and other tax adjustments

90

—

(90)

377

—

(377)

Deferred income tax valuation allowance (releases) charges

15

—

(15)

(45)

—

45

Changes in fair value of securities used to hedge guaranteedliving benefits

(29)

(6)

—

(23)

12

2

—

10

Change in market risk benefit, net(a)

(713)

(150)

—

(563)

(484)

(102)

—

(382)

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

(11)

(2)

—

(9)

(7)

(1)

—

(6)

Changes in the fair value of equity securities

41

9

—

32

(134)

(28)

—

(106)

Loss on extinguishment of debt

299

63

—

236

21

4

—

17

Net investment income on Fortitude Re funds withheld assets

(634)

(133)

—

(501)

(1,001)

(210)

—

(791)

Net realized losses on Fortitude Re funds withheld assets

312

65

—

247

396

83

—

313

Net realized (gains) losses on Fortitude Re funds withheld
embedded derivative(7,851) (1,649)—(6,202)

(152)

(32)

—

(120)

Net realized (gains) losses(b)(1,055) (270)

—

(785)

1,023

218

—

805

Loss from discontinued operations

1—

Net gain on divestitures and other

(45)

(9)

—

(36)

(142)

(30)

—

(112)

Non-operating litigation reserves and settlements

(41)

(9)

—

(32)

—

—

—

—

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

(206)

(43)

—

(163)

(112)

(24)

—

(88)

Net loss reserve discount charge

4

1

—

3

85

18

—

67

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

—

—

—

—

75

16

—

59

Integration and transaction costs associated with acquiring ordivesting businesses

136

29

—

107

196

41

—

155

Restructuring and other costs

415

85

—

330

402

84

—

318

Non-recurring costs related to regulatory or accountingchanges

22

5

—

17

36

8

—

28

Net impact from elimination of international reporting lag(c)

—

—

—

—

(12)

(3)

—

(9)

776

776

297

297

Noncontrolling interests(d)Adjusted pre-tax income/Adjusted after-tax income
attributable to AIG common shareholders$ 4,187 $ 907$ (275)$ 2,983$ 5,406$ 1,229$ (504)$ 3,651(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(c)and prior periods. Therefore, we reported the cumulative effect of the change in accounting principle within the Consolidated Statements ofIncome (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 September
30,
Earnings per common share:% Inc. (Dec.)

Nine Months Ended September
30,

2022

2023

2022

2023 % Inc. (Dec.)

Income from continuing operations$ 3.59$ 2.83(21.2)

Income from discontinued operations

—

—

NM

$ 3.59$ 2.83(21.2)$ 12.22 $ 4.86

(60.2)

Income from continuing operations

3.55$ 2.81(20.8)$ 12.08 $ 4.83

(60.0)

Income from discontinued operations

—

—

NM

Net income attributable to AIG common shareholders$ 3.55$ 2.81(20.8)

Adjusted after-tax income attributable to AIG common shareholders
per diluted share$ 0.84$ 1.61

91.7

Basic

763.1

Diluted

771.1

Basic

Net income attributable to AIG common shareholders% $ 12.22 $ 4.86——

(60.2)%NM

Diluted——$ 12.08 $ 4.83

% $ 3.73$ 4.99

712.6

789.9

725.6

718.7

799.1

731.0

Weighted average shares outstanding:Reconciliation of Book Value per Common ShareNM(60.0)

33.8%

As of period end:

September30,
2022

December31,
2022

June 30,
2023

September
30,
2023

Total AIG shareholders' equity$ 39,906$ 40,970$ 42,454$ 39,984

Less: Preferred equity

485

485

485

485

Total AIG common shareholders' equity (a)39,421

40,48541,96939,499Less: Deferred tax assets (DTA)*

4,553

4,518

4,263

3,974

Less: Accumulated other comprehensive income (AOCI)(24,121)(22,616)(18,982 )(22,529)

Add: Cumulative unrealized gains and losses related to Fortitude Re Funds withheld assets(3,021)(2,862)(2,331 )(2,973)

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds
withheld assets(21,100)(19,754)(16,651 )(19,556)

Total adjusted common shareholders' equity (b)$ 55,968$ 55,721$ 54,357$ 55,081

Goodwill

3,860

3,927

3,617

3,498

Value of business acquired

89

92

92

16

Value of distribution channel acquired

428

418

188

149

Other intangibles

286

286

244

249

Total intangible assets

4,663

4,723

4,141

3,912

$ 51,305$ 50,998$ 50,216$ 51,169

747.2

734.1

717.5

704.6

Less: Intangible assets:

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

September 30, % Inc. December 31, % Inc. June 30, % Inc.
2022
(Dec.) 2022
(Dec.) 2023
(Dec.)

Book value per common share (a÷d)$ 52.76

September 30,
2023

6.3 % $ 55.15

1.7 % $ 58.49 (4.2 )% $ 56.06

Adjusted book value per common share (b÷d)

74.90

4.4

75.90

3.0

75.76 3.2

78.17

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

68.66

5.8

69.47

4.5

69.99 3.8

72.62

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 September 30,
2022

2023

Actual or annualized net income (loss) attributable to AIG common shareholders (a)$ 10,964$ 8,080

Actual or annualized adjusted after-tax income attributable to AIG common shareholders (b)$ 2,576$ 4,632

Average AIG Common Shareholders' equity (c)$ 42,325$ 40,734

Less: Average DTA*

4,650

4,119

Less: Average AOCI

(21,384)(20,756)

Add: Average cumulative unrealized gains and losses related to Fortitude Re funds withheld assets(2,622)(2,652)

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld assets(18,762)(18,104)

Average adjusted common shareholders' equity (d)$ 56,437$ 54,719

ROCE (a÷c)

25.9

%

19.8

%

Adjusted return on common equity (b÷d)

4.6

%

8.5

%

* 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.
Reconciliation of Net Investment Income
Three Months Ended
September 30,

Net Investment Income per Consolidated Statements of Operations

2022

2023

$ 2,668$ 3,556

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

)

(13

)

Changes in the fair value of equity securities

(16

)

(40

)

Net investment income on Fortitude Re funds withheld assets

(155

)

(264

)

Net realized gains (losses) related to economic hedges and other52

43$ 2,535$ 3,282

Total Net Investment Income - APTI Basis
Net Premiums Written - Comparable BasisThree Months Ended September 30, 2023

NorthGlobal General
General Insurance

Global -America -International -Commercial Personal Commercial Commercial

Insurance Lines

Insurance Lines

Lines

Change in net premiums written
Increase (decrease) as reported in U.S. dollars 0.9

%

(3.5

)%

13.7

% (7.7

)

1.9

)%

2.3

%

—

(1.3

)

Foreign exchange effect

0.1

(0.5

Lag elimination impact

1.9

2.4

0.3

—

6.4

Validus Re

1.9

2.2

—

3.7

—

Crop Risk Services

4.1

5.4

—

8.9

—

Increase (decrease) on comparable basis

8.9

%

6.0

%

15.9

% 4.9

%

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
September 30,
2022

2023

Combined ratio

97.3

90.5

Catastrophe losses and reinstatement premiums(9.8

Prior year development, net of reinsurance and prior year premiums

0.9

2.7

Accident year combined ratio, as adjusted

88.4

86.3

114.0

92.3

Total General Insurance

)

(6.9

North America
Combined ratio

)

7.4

%

Catastrophe losses and reinstatement premiums

(17.2

)

(11.3

Prior year development, net of reinsurance and prior year premiums

(8.6

)

5.6

Accident year combined ratio, as adjusted

88.2

86.6

Loss ratio

91.5

63.7

Catastrophe losses and reinstatement premiums

(18.1

)

(11.7

Prior year development, net of reinsurance and prior year premiums

(10.9

)

5.8

Accident year loss ratio, as adjusted

62.5

57.8

Combined ratio

113.6

88.9

Catastrophe losses and reinstatement premiums

(18.1

)

(11.7

Prior year development, net of reinsurance and prior year premiums

(10.9

)

5.8

Accident year combined ratio, as adjusted

84.6

83.0

Combined ratio

116.4

113.0

Catastrophe losses and reinstatement premiums(11.4

Prior year development, net of reinsurance and prior year premiums

7.8

5.1

Accident year combined ratio, as adjusted

112.8

108.4

Combined ratio

81.4

88.7

Catastrophe losses and reinstatement premiums(3.0

Prior year development, net of reinsurance and prior year premiums

10.2

0.1

Accident year combined ratio, as adjusted

88.6

86.0

)

North America - Commercial Lines))

North America - Personal Insurance

)

(9.7

)

International

)

(2.8

)

International - Commercial Lines
Combined ratio

75.4

Catastrophe losses and reinstatement premiums(2.7

Prior year development, net of reinsurance and prior year premiums
Accident year combined ratio, as adjusted

83.4
)

(3.3

)

7.7

(0.4

)

80.4

79.7

Loss ratio

50.0

55.8

Catastrophe losses and reinstatement premiums(3.3

Prior year development, net of reinsurance and prior year premiums

13.4

0.8

Accident year loss ratio, as adjusted

60.1

54.5

Combined ratio

89.8

97.2

Catastrophe losses and reinstatement premiums(3.3

Prior year development, net of reinsurance and prior year premiums

13.4

0.8

Accident year combined ratio, as adjusted

99.9

95.9

Combined ratio

98.0

86.6

Catastrophe losses and reinstatement premiums

(11.7

)

(8.0

Prior year development, net of reinsurance and prior year premiums

(3.3

)

3.1

Accident year combined ratio, as adjusted

83.0International - Personal Insurance

)

)

(2.1

(2.1

)

)

Global - Commercial Insurance

81.7

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

Nine Months Ended

September 30,

September 30,

2022

2023

2022

2023

$ 750

$ 1,367$ 3,218$ 3,934

Interest expense on attributed financial debt

132

130

429

389

Adjusted pre-tax income including attributed interest expense

618

1,237

2,789

3,545

Income tax expense

129

289

629

815

Adjusted after-tax income

489

948

2,160

2,730

Dividends declared on preferred stock

3

3

9

9

Adjusted after-tax income attributable to common shareholders

$ 486

$ 945

$ 2,151$ 2,721

Ending adjusted segment common equity$ 28,164$ 30,571$ 28,164$ 30,571

Average adjusted segment common equity$ 29,134$ 30,362$ 27,838$ 30,149

Return on adjusted segment common equity

6.7

Adjusted pre-tax income

Total segment shareholder’s equity% 12.4% 10.3% 12.0%$ 21,672$ 24,225$ 21,672$ 24,225

Less: Preferred equity

209

213

209

213

Total segment common equity

21,46324,012

21,46324,012

Less: Accumulated other comprehensive income (AOCI)(7,429 )(7,276 )(7,429 )(7,276 )Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

(728

(717

(728

(717

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld
assets(6,701 )(6,559 )(6,701 )(6,559 )$ 28,164$ 30,571$ 28,164$ 30,571

Total adjusted segment common equity
Reconciliation of Life and Retirement Return on Adjusted Segment Common Equity

)

)

)

)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2022

2023

2022

2023

$ 784

$ 971

$ 2,465$ 2,848

Interest expense on attributed financial debt

93

117

235

345

Adjusted pre-tax income including attributed interest expense

691

854

2,230

2,503

Income tax expense

141

168

449

496

Adjusted after-tax income

550

686

1,781

2,007

Dividends declared on preferred stock

2

2

6

6

Adjusted after-tax income attributable to common shareholders

$ 548

$ 684

$ 1,775$ 2,001

Ending adjusted segment common equity$ 23,051$ 24,615$ 23,051$ 24,615

Average adjusted segment common equity$ 22,531$ 23,943$ 22,469$ 23,502

Return on adjusted segment common equity

9.7

Adjusted pre-tax income% 11.4% 10.5% 11.4$ 7,512$ 7,628$ 7,512$ 7,628

Less: Preferred equity

163

171

163

171

Total segment common equity

7,349

7,457

7,349

7,457

Less: Accumulated other comprehensive income (AOCI)(17,995 )(19,414 )(17,995 )(19,414 )Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets(2,293 )(2,256 )(2,293 )(2,256 )Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds
withheld assets(15,702 )(17,158 )(15,702 )(17,158 )Total segment shareholder’s equity

Total adjusted segment common equity
American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per common share data)$ 23,051$ 24,615$ 23,051$ 24,615%

Reconciliations of Premiums and Deposits

Three Months Ended
September 30,
2022

2023

Individual Retirement:
Premiums$ 56

Deposits

3,740

Other

(4

Premiums and deposits

$ 29
3,935
)

(3

$ 3,792$ 3,961$ 3$ 6Group Retirement:
Premiums
Deposits

2,036

1,825

Other

—

—

$ 2,039$ 1,831

Premiums

$ 535

$ 575

Deposits

405

393

Other

226

232

$ 1,166$ 1,200

$ 804

$ 200

Premiums and depositsLife Insurance:

Premiums and deposits

Institutional Markets:
Premiums
Deposits

1,085

2,048

Other

8

8

)

Premiums and deposits$ 1,897$ 2,256

Premiums$ 1,398$ 810

Deposits

7,266

8,201

Other

230

237

$ 8,894$ 9,248

Total Life and Retirement:

Premiums and deposits

Total Debt and Preferred Stock Leverage

Three Months Ended Three Months Ended
June 30, 2023

September 30, 2023

Hybrid - debt securities / Total capital

2.9

Financial debt and debt held for sale / Total capital

28.7

29.8

Total debt / Total capital

31.6

32.9

Preferred stock / Total capital

0.7

0.8

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

33.7

AOCI Impact

%

3.1

%

(6.3

)

(7.8

)

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

%

25.9

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20231101213581/en/
Quentin McMillan (Investors): quentin.mcmillan@aig.com
Claire Talcott (Media): claire.talcott@aig.com
www.aig.com
Source: American International Group, Inc.