FOR IMMEDIATE RELEASE

Press Release
AIG
175 Water Street
New York, NY
10038
www.aig.com

Contacts:
Sabra Purtill (Investors): sabra.purtill@aig.com
Shelley Singh (Investors): shelley.singh@aig.com
Daniel O’Donnell (Media): daniel.odonnell@aig.com
Claire Talcott (Media): claire.talcott@aig.com
AIG Reports First Quarter 2020 Results

•

•
•

•

•
•

•

•

Net income attributable to AIG common shareholders was $1.7 billion, or $1.98 perdiluted common share, for the first quarter of 2020, compared to $654 million, or$0.75 per diluted common share, in the prior year quarter, primarily driven by $3.5
billion of pre-tax net realized capital gains, compared to $446 million of pre-tax net
realized capital losses in the prior year quarter.
Adjusted after-tax income attributable to AIG common shareholders* was $99
million, or $0.11 per diluted common share, for the first quarter of 2020, compared
to $1.4 billion, or $1.58 per diluted common share, in the prior year quarter.
General Insurance posted a combined ratio of 101.5 compared to 97.4 in the prioryear quarter. The accident year combined ratio, as adjusted*, was 95.5, comparedto 96.1 in the prior year quarter, reflecting a better portfolio mix due to disciplined
underwriting and continued expense management.
General Insurance had $419 million of pre-tax catastrophe losses (CATs), net ofreinsurance, in the first quarter. This included $272 million of estimated COVID-19
losses related to Travel, Contingency, Commercial Property, Trade Credit,
Workers’ Compensation and Validus Re. The remainder of the CATs wereprimarily weather-related.
Life and Retirement reported adjusted pre-tax income of $574 million, primarily due
to declines in equity markets and widening spreads in credit markets triggered by
the ongoing COVID-19 crisis.
Total consolidated net investment income was $2.5 billion compared to $3.9 billion
in the prior year quarter. Net investment income on an adjusted pre-tax income
basis decreased approximately $1.0 billion to $2.7 billion, reflecting lower
alternative investment returns and losses on fair value option (FVO) securities.
Book value per common share was $69.30 at March 31, 2020, a decrease of 8%
compared to December 31, 2019. Book value per common share, excluding
accumulated other comprehensive income (AOCI) and deferred tax assets (DTA)(Adjusted book value per common share)* was $60.55, an increase of 3%
compared to December 31, 2019.
Return on Common Equity (ROCE) and Return on Common Equity, excluding
AOCI and DTA (Adjusted ROCE)* were 11.2% and 0.8%, respectively, for thethree months ended March 31, 2020.

* Refers to financial measure not calculated in accordance with generally accepted accounting principles (nonGAAP); definitions of non-GAAP measures and reconciliations to their closest GAAP measures can be foundin this news release under the heading Comment on Regulation G and Non-GAAP Financial Measures.

1

FOR IMMEDIATE RELEASENEW YORK, May 4, 2020 - American International Group, Inc. (NYSE: AIG) today
reported net income attributable to AIG common shareholders of $1.7 billion, or $1.98
per diluted common share, for the first quarter of 2020, compared to $654 million, or$0.75 per diluted common share, in the prior year quarter. The improvement was
primarily due to $3.5 billion of pre-tax net realized capital gains largely related to markto-market gains from variable annuity and interest rate hedges and the impact of our
non-economic non-performance risk adjustment, per GAAP, on the fair value of ourliabilities compared to $446 million of pre-tax net realized capital losses in the prioryear quarter.
Adjusted after-tax income attributable to AIG common shareholders was $99 million,
or $0.11 per diluted common share, for the first quarter of 2020, compared to $1.4
billion, or $1.58 per diluted common share, in the prior year quarter. The decrease
was primarily due to lower net investment income driven by declines in equity markets
and losses on FVO bonds from widening spreads in credit markets, and the impact of
COVID-19.
Brian Duperreault, AIG’s Chief Executive Officer, said: “In the face of COVID-19, an
unprecedented global catastrophe, our colleagues have shown great resilience andremain focused on what we do best, which is helping our clients manage risk,
especially in difficult times.
“It has been heartbreaking to watch this humanitarian crisis unfold over the last few
months. At the same time, the courage, compassion and empathy that have emerged,
particularly from first responders, health care providers and others on the front lines,
has been heartwarming. AIG is committed to assisting with relief efforts across theglobe and will be making an inaugural $5 million contribution to our recently reinstated
AIG Foundation for this purpose.
“AIG was in a strong financial position before this crisis began and remains in a strong
financial position today. While we believe COVID-19 will be the single largest CAT
loss the industry has ever seen, the significant body of work our team has undertaken
since late 2017 has served us well as we navigate through this evolving situation. AIG
is well-positioned to emerge as a global insurer of choice with significant financial
flexibility.
“In the first quarter of 2020, our core businesses delivered strong results building on
the momentum we had coming into the year. In General Insurance, the adjusted
accident year combined ratio continued to improve, and Life and Retirement delivered
solid results despite unfavorable capital markets and continued low interest rates.
“The COVID-19 crisis has created significant uncertainty, and it will take time tounderstand its broader ramifications. In light of this, AIG is withdrawing previously
issued guidance, including that relating to Adjusted Return on Common Equity.
However, we do expect to see continued improvement in General Insurance,
particularly in the adjusted combined ratio, and, in Life and Retirement, we do not2

FOR IMMEDIATE RELEASE

believe that the impact of COVID-19 will result in a material reduction of our long-term
return profile.
“While the new normal COVID-19 will create for each of us is still unknown, I am
confident that AIG will continue to move forward on its journey to become a top
performing company and leading insurance franchise.”

FINANCIAL SUMMARY
Three Months Ended
March 31,($ in millions, except per common share amounts)

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

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

General Insurance Combined ratio
General Insurance Accident year combined ratio, as adjusted
Adjusted return on attributed common equity - Life and Retirement*

2019
654
0.75
877.5

$

501 $
574
(535)
(368)
172 $

1,268
924
(457)
112
1,847

$
$

99
0.11

1,388
1.58

$

Return on common equity
Return on tangible common equity*
Adjusted return on common equity
Adjusted return on tangible common equity*
Adjusted return on attributed common equity - Core*
Common shares outstanding
Book value per common share
Tangible book value per common share*
Book value per common share, excluding accumulated other comprehensive income*
Adjusted book value per common share
Adjusted tangible book value per common share*

$
$

878.9

Weighted average common shares outstanding - diluted
Adjusted pre-tax income (loss):
General InsuranceLife and Retirement
Other Operations
Legacy
Total

2020
1,742
1.98

$

$
$

11.2 %
12.2 %
0.8 %
0.9 %
3.4 %

4.5 %
4.9 %
11.6 %
13.1 %
13.4 %

861.3
69.30
63.33
70.45
60.55
54.58

869.7
69.33
63.10
66.89
55.47
49.24

$

101.5
95.5
8.4 %

97.4
96.1
15.0 %All comparisons are against the first quarter of 2019, unless otherwise indicated. Refer to the AIGFirst Quarter 2020 Financial Supplement, which is posted on AIG's website in the Investors section,
for further information.

3

FOR IMMEDIATE RELEASEFIRST QUARTER 2020 HIGHLIGHTS
General Insurance – First quarter adjusted pre-tax income of $501 million wascomprised of an underwriting loss of $87 million and net investment income of $588
million. The underwriting loss included the impact of $272 million of estimated COVID19 related losses, without which General Insurance would have reported anunderwriting profit. Favorable net prior year loss reserve development, net ofreinsurance, totaled $60 million, and was primarily due to $53 million of amortizationfrom the Adverse Development Cover (ADC). CATs, net of reinsurance, totaled $419
million, including $272 million related to COVID-19. AIG is continually reassessing its
exposures in light of unfolding developments in the U.S. and globally and evaluating
coverage under its reinsurance arrangements.
The General Insurance combined ratio was 101.5, including 6.9 points of CATs, ofwhich 4.5 points related to COVID-19 losses. The accident year combined ratio, as
adjusted, was 95.5, comprised of a 60.8 accident year loss ratio, as adjusted*, an
improvement of 1.0 point from the prior year quarter, and an expense ratio of 34.7.
The improvement in accident year loss ratio, as adjusted, reflected the underwriting
and reinsurance actions taken to improve business mix and loss performance, andimproved rate adequacy. General Insurance also reduced general operating expenses(GOE) by 8% to $776 million.
Life and Retirement – First quarter adjusted pre-tax income was $574 million
compared to $924 million in the prior year quarter. The decrease reflected unfavorable
impacts from equity markets which primarily resulted in higher Variable Annuity
reserves and accelerated deferred acquisition cost (DAC) and sales inducement (SI)
amortization. In addition, widening credit spreads resulted in a decrease in net
investment income from lower returns on FVO bonds and the Retirement businesses
continued to see spread compression given the low interest rate environment. Net
flows were unfavorable compared to the prior year quarter primarily due to lower Fixed
Annuity sales and higher Retail Mutual Fund surrenders, partially offset by higher
Variable Annuity sales and lower surrenders in Group Retirement. Life andRetirement’s Adjusted ROCE for the first quarter of 2020 was 8.4%.
Net Investment Income – First quarter net investment income was $2.5 billion
compared to $3.9 billion in the prior year quarter. Net investment income on an
adjusted pre-tax income basis decreased approximately $1.0 billion to $2.7 billion. The
decrease reflected lower alternative investment income compared to the prior year
quarter and other investment losses in the first quarter of 2020 compared to otherinvestment income in the prior year quarter, primarily driven by FVO securities.
AIG significantly expanded its disclosures in the financial supplement to provide
greater detail on its investment portfolio, including information on its separate General
Insurance, Life and Retirement and Legacy portfolios. As a global multi-line insurer,
AIG's consolidated portfolio does not readily compare to property and casualty or life
insurance peers. The detail should enable additional analysis of the separate
portfolios to similar peers.
4FOR IMMEDIATE RELEASE

Other Operations – First quarter adjusted pre-tax loss was $535 million, including $84
million of reductions from consolidation, eliminations and other adjustments, compared
to $457 million in the prior year quarter. Before consolidation, eliminations and otheradjustments, the increase in the pre-tax loss was primarily due to higher GOE of $66
million from higher compensation, including the issuance of a $500 grant to each
employee globally, which equates to $30 million in the aggregate, to help withunanticipated costs due to COVID-19. In addition, the loss included higher technology
costs, partially offset by higher net investment income associated with consolidated
investment entities. At the end of March, AIG decided to place Blackboard U.S.
Holdings, Inc. (Blackboard), AIG’s technology-driven subsidiary, into run-off. As aresult of this decision, AIG recognized a pre-tax loss of $210 million, primarily
consisting of asset impairment charges; this charge did not impact adjusted pre-tax
income.
Legacy Results – First quarter adjusted pre-tax loss was $368 million compared toadjusted pre-tax income of $112 million in the prior year quarter, reflecting losses,
principally mark-to-market, on FVO investment portfolios compared to gains in theprior year quarter, as well as lower Legacy Life and Retirement net investment income
from alternative investments.
Included in the Legacy results is Fortitude Reinsurance Company Ltd (Fortitude Re).
AIG agreed in November 2019 to sell a controlling financial interest in Fortitude Group
Holdings, LLC, the holding company for Fortitude Re. The sale is expected to close in
mid-2020, subject to required regulatory approvals and other customary closing
conditions.
Book Value per Common Share – As of March 31, 2020, book value per commonshare was $69.30 compared to $74.93 at December 31, 2019, largely driven by net
unrealized mark-to-market losses on available for sale fixed maturities due to theimpact of wider credit spreads as of March 31, 2020. Adjusted book value percommon share, which excludes AOCI and DTA, increased slightly to $60.55
compared to the prior year end as a result of $1.7 billion of net income attributable toAIG for the quarter.
Tangible book value per common share was $63.33 compared to $68.93 at December
31, 2019. Adjusted tangible book value per common share, which is Adjusted bookvalue per common share excluding Goodwill, Value of Business Acquired (VOBA),
Value of Distribution Channel Acquired (VODA) and Other Intangible Assets was$54.58 compared to $52.88 at December 31, 2019.
Liquidity and Capital – As of March 31, 2020, AIG Parent liquidity stood at
approximately $7.5 billion. In March, AIG borrowed, and it currently has outstanding,$1.3 billion under its $4.5 billion committed revolving syndicated credit facility. Also, in
March, AIG redeemed $350 million aggregate principal amount of its 4.35% Callable
Notes Due 2045.

5

FOR IMMEDIATE RELEASEAIG repurchased approximately 12 million shares of AIG Common Stock during thefirst quarter for an aggregate purchase price of $500 million under an accelerated
share repurchase agreement entered into in February. As of March 31, 2020, $1.5
billion remained under AIG’s share repurchase authorization.
Income Taxes – The first quarter effective tax rate on pre-tax income was 35.3%
primarily as a result of a $274 million valuation allowance. The effective tax rate on
adjusted pre-tax income was 48.8% and differs from the statutory tax rate of 21%
primarily due to excess tax charges related to share based compensation payments
recorded through the income statement, tax charges associated with the effect offoreign operations, state and local income taxes, and non-deductible transfer pricing
charges, partially offset by tax benefits associated with tax exempt income. The effectof foreign operations was primarily related to income in foreign operations taxed atstatutory tax rates higher than 21%, other foreign taxes, and foreign income subject to
U.S. taxation.

GENERAL INSURANCE($ in millions)Three Months Ended March 31,
2020
2019

Total General Insurance
Gross premiums written
Net premiums written
Underwriting income (loss)
Adjusted pre-tax income

$
$
$
$

Underwriting ratios:
Loss ratio
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustments for ceded premium under reinsurance
contracts and otherAccident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted

6

Change10,086 $5,921 $
(87) $
501 $

10,195
6,033
179
1,268

(1) %
(2)
NM
(60)

66.8

63.1

3.7 pts

(6.9)
0.9

(2.7)
1.0

(4.2)
(0.1)

60.8
34.7
101.5
95.5

0.4
61.8
34.3
97.4
96.1

(0.4)
(1.0)
0.4
4.1
(0.6)

FOR IMMEDIATE RELEASE

General Insurance - North America($ in millions)North America
Net premiums written
Commercial Lines
Personal Insurance

Three Months Ended March 31,
2020
2019
$

2,770
2,225
545

$

2,578
1,998
580

Change7 %11(6)Underwriting income (loss)
Commercial Lines
Personal Insurance$(86) $
(1)
(85)

(11)
54
(65)

NM
NM
(31)

Adjusted pre-tax income

$

409

934

(56)

72.2

69.4

2.8 pts

(7.0)
0.2

(5.1)
1.8

(1.9)
(1.6)

65.4
30.8
103.0
96.2

1.0
67.1
30.9
100.3
98.0

(1.0)
(1.7)
(0.1)
2.7
(1.8)

72.7

70.7

2.0 pts

(6.7)
2.2

(5.1)
2.8

(1.6)
(0.6)

68.2
27.3
100.0
95.5

1.0
69.4
27.0
97.7
96.4

(1.0)
(1.2)
0.3
2.3
(0.9)

70.8

65.4

5.4 pts

(7.9)
(5.1)

(5.0)
(1.2)

(2.9)
(3.9)

57.8
40.2
111.0
98.0

0.9
60.1
42.9
108.3
103.0

(0.9)
(2.3)
(2.7)
2.7
(5.0)

Underwriting ratios:
North America
Loss ratio
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustments for ceded premium under reinsurance
contracts and otherAccident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted
North America Commercial Lines
Loss ratio
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustments for ceded premium under reinsurance
contracts and otherAccident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted
North America Personal Insurance
Loss ratio
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustments for ceded premium under reinsurance
contract
Accident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted

7$

FOR IMMEDIATE RELEASE

General Insurance North America – Commentary

8•

Net premiums written increased by 7% to $2.8 billion primarily due to growth in
the assumed reinsurance business, Retail and Wholesale Property, as well as
strong Commercial Lines rate increases, partially offset by underwriting actions
taken through 2019.

•

Pre-tax underwriting loss of $86 million included $205 million of CATs, net ofreinsurance, of which $123 million related to COVID-19. Favorable net prioryear loss reserve development was $13 million, with favorable net prior year
loss reserve development of $53 million for North America Commercial Linespartially offset by unfavorable net prior year loss reserve development of $40
million for North America Personal Insurance. North America Commercial Linesfavorable net prior loss reserve development included $53 million ofamortization from the ADC compared to $58 million in the prior year quarter.

•

The North America combined ratio of 103.0 included 7.0 points of CATs andreinstatement premiums of which 4.2 points related to COVID-19 and 0.2
points related to favorable net prior year loss reserve development. The
accident year combined ratio, as adjusted, was 96.2, comprised of a 65.4
accident year loss ratio, as adjusted, and a 30.8 expense ratio. The 1.7 points
improvement in the accident year loss ratio, as adjusted, was driven by change
in business mix and strong rate increases, as well as benefits fromunderwriting actions taken in 2019.

•

The expense ratio improved slightly as the decline in GOE, driven by ongoing
expense discipline, was greater than the decline in net premiums earned.

FOR IMMEDIATE RELEASE

General Insurance - International($ in millions)International
Net premiums written
Commercial Lines
Personal Insurance

Three Months Ended March 31,
2020
2019
$

3,151
1,577
1,574

$

3,455
1,780
1,675

Change
(9) %
(11)
(6)

Underwriting income (loss)
Commercial Lines
Personal Insurance

$

(1) $
(41)
40

190
68
122

NM
NM
(67)

Adjusted pre-tax income

$

92

334

(72)

61.7

57.4

4.3 pts

(6.7)
1.4
56.4
38.3
100.0
94.7

(0.5)
0.4
57.3
37.2
94.6
94.5

(6.2)
1.0
(0.9)
1.1
5.4
0.2

67.0

63.0

4.0 pts(11.3)
2.5
58.2
35.6
102.6
93.8

(1.0)
(2.4)
59.6
33.0
96.0
92.6

56.9

52.4

4.5 pts

(2.7)
0.6
54.8
40.7
97.6
95.5

2.8
55.2
41.1
93.5
96.3

(2.7)
(2.2)
(0.4)
(0.4)
4.1
(0.8)

Underwriting ratios:
International
Loss ratio
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
Prior year development
Accident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted
International Commercial Lines
Loss ratio
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
Prior year development
Accident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted
International Personal Insurance
Loss ratio
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
Prior year development
Accident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted

9$(10.3)
4.9
(1.4)
2.6
6.6
1.2

FOR IMMEDIATE RELEASE

General Insurance International – Commentary

10•

Net premiums written decreased 9% on a reported basis and 8% on a constantdollar basis, driven by lower production primarily due to underwriting actions
taken through 2019, as well as lower premiums from run-off business, partially
offset by premium rate increases.

•

A pre-tax underwriting loss of $1 million included $214 million of CATs, net ofreinsurance, of which $149 million related to COVID-19. Favorable net prioryear loss reserve development was $47 million, with $37 million of favorable
net prior year loss reserve development in International Commercial Lines and$10 million in International Personal Insurance.

•

The International combined ratio of 100.0 included 6.7 points of CATs andreinstatement premiums of which 4.7 points related to COVID-19 and 1.4
points related to favorable net prior year loss reserve development. The
accident year combined ratio, as adjusted, of 94.7 was comprised of a 56.4
accident year loss ratio, as adjusted, and a 38.3 expense ratio. The 0.9 points
improvement in the accident year loss ratio, as adjusted, reflected premium
rate increases, benefits from underwriting actions and better risk selection.

•

The expense ratio increased 1.1 points as the decline in expenses was lessthan the decline in net premiums earned.

FOR IMMEDIATE RELEASE

LIFE AND RETIREMENT

Three Months Ended March 31,
2020
2019

($ in millions)Life and Retirement
Premiums & fees
Net investment income
Adjusted revenues
Benefits, losses and expenses
Adjusted pre-tax income
Premiums and deposits
Individual Retirement
Premiums & fees
Net investment income
Adjusted revenues
Benefits, losses and expenses
Adjusted pre-tax income
Premiums and deposits
Net flows
Group Retirement
Premiums & fees
Net investment income
Adjusted revenues
Benefits, losses and expenses
Adjusted pre-tax income
Premiums and deposits
Net flows
Life Insurance
Premiums & fees
Net investment income
Adjusted revenues
Benefits, losses and expenses
Adjusted pre-tax income
Premiums and deposits
Institutional Markets
Premiums & fees
Net investment income
Adjusted revenues
Benefits, losses and expenses
Adjusted pre-tax income
Premiums and deposits

11

Change

$

1,949
2,003
4,172
3,598
574
6,903

$

1,936
2,042
4,204
3,280
924
8,356

1 %
(2)
(1)
10
(38)
(17)

$

248 $
975
1,370
1,064
306
3,116
(1,594)

204
999
1,351
843
508
4,186
133

22 %
(2)
1
26
(40)
(26)
NM

$

115 $
517
694
551
143
1,855
(587)

104
541
709
477
232
2,063
(875)

11 %
(4)
(2)
16
(38)
(10)
33

$

789 $
291
1,091
1,036
55
1,015

768
291
1,073
957
116
995

3 %
2
8
(53)
2

$

797 $
220
1,017
947
70
917

860
211
1,071
1,003
68
1,112

(7) %
4
(5)
(6)
3
(18)

FOR IMMEDIATE RELEASE

Life and Retirement – Commentary

12•Life and Retirement reported a decrease in adjusted pre-tax income to $574
million compared to $924 million in the prior year quarter, driven by lower
equity market levels and wider credit spreads compared to the prior year
quarter.

•

Premiums were $1.2 billion in the first quarter of 2020, essentially flatcompared to the prior year quarter. Premiums and deposits decreased to $6.9
billion compared to $8.4 billion in the prior year quarter primarily due to lower
Fixed Annuities deposits in the first quarter of 2020 driven by lower interest
rates, compared to strong deposit volumes in the prior year quarter. Net flows
continued to be negative.

•

Individual Retirement reported adjusted pre-tax income of $306 million
compared to $508 million in the prior year quarter. Adjusted pre-tax income
decreased as a result of unfavorable impacts from equity markets driving
higher Variable Annuity DAC/SI amortization and higher reserves, along withwidening credit spreads driving lower income on FVO securities compared tothe prior year quarter. Total net flows excluding Retail Mutual Funds wereslightly negative in the quarter and unfavorable compared to the prior year
period, driven by lower Fixed Annuity sales resulting from the lower interest
rate environment, partially offset by favorable Variable Annuity sales.

•Group Retirement reported adjusted pre-tax income of $143 million compared
to $232 million in the prior year quarter. The decrease in adjusted pre-tax
income was driven by the unfavorable impacts from equity markets resulting inhigher DAC amortization and higher reserves, and widening credit spreads
resulting in lower income on FVO securities. Net flows remained negative,
although favorable compared to the prior year quarter, primarily due to lower
surrenders partially offset by lower deposits.

•Life Insurance reported adjusted pre-tax income of $55 million compared toadjusted pre-tax income of $116 million in the prior year quarter due to higher
mortality and insurance reserves, and prior year favorable reserve andreinsurance refinements. Mortality was better than pricing assumptions;however, the first quarter of 2020 included an incurred but not reported (IBNR)
reserve strengthening related to potential death notice delays due to COVID19.

•

Institutional Markets adjusted pre-tax income of $70 million increased from $68
million in the prior year quarter due to higher net investment income on a
growing asset base and slightly favorable alternative investment returns
compared to the prior year quarter.

FOR IMMEDIATE RELEASECONFERENCE CALL
AIG will host a conference call tomorrow, Tuesday, May 5, 2020 at 8:00 a.m. ET to review
these results. The call is open to the public and can be 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.
The conference call (including the financial results presentation material), the earnings
release and the financial supplement may include, and officers and representatives of
AIG may from time to time make and discuss, projections, goals, assumptions andstatements that may constitute “forward-looking statements” within the meaning of thePrivate Securities Litigation Reform Act of 1995. These projections, goals, assumptions
and statements are not historical facts but instead represent only a belief regarding future
events, many of which, by their nature, are inherently uncertain and outside AIG’s control.
These projections, goals, assumptions and statements include statements preceded by,followed by or including words such as “will,” “believe,” “anticipate,” “expect,” “intend,”“plan,” “focused on achieving,” “view,” “target,” “goal” or “estimate.” These projections,
goals, assumptions and statements may relate to future actions, prospective services or
products, future performance or results of current and anticipated services or products,
sales efforts, expenses, the outcome of contingencies such as legal proceedings,
anticipated organizational, business or regulatory changes, the effect of catastrophes andmacroeconomic events, such as COVID-19, anticipated dispositions, monetization and/or
acquisitions of businesses or assets, or successful integration of acquired businesses,
management succession and retention plans, exposure to risk, trends in operations andfinancial results.
It is possible that AIG’s actual results and financial condition will differ, possibly materially,
from the results and financial condition indicated in these projections, goals, assumptions
and statements. Factors that could cause AIG’s actual results to differ, possibly materially,
from those in the specific projections, goals, assumptions and statements include:
•
•

•

13

the adverse impact of COVID-19, including with respect to AIG’s business,financial condition and results of operations;changes in market and industry conditions, including the significant global
economic slowdown, general market declines and disruptions to AIG’soperations driven by COVID-19 and responses thereto, including new orchanged governmental policy and regulatory actions;the occurrence of catastrophic events, both natural and man-made, including
COVID-19, pandemics and the effects of climate change;

FOR IMMEDIATE RELEASE

•
•
•
•
•
•

•
•
•
•
•
•
•
•
•
•

AIG’s ability to effectively execute on AIG 200 operational programs designed
to achieve underwriting excellence, modernization of AIG’s operating
infrastructure, enhanced user and customer experiences and unification of AIG;
AIG’s ability to consummate the sale of its controlling interest in Fortitude
Holdings and its ability to successfully manage Legacy Portfolios;changes in judgments concerning potential cost saving opportunities;
actions by credit rating agencies;changes in judgments concerning insurance underwriting and insurance liabilities;
the impact of potential information technology, cybersecurity or data security
breaches, including as a result of cyber-attacks or security vulnerabilities, thelikelihood of which may increase due to extended remote business operations
as a result of COVID-19;
disruptions in the availability of AIG’s electronic data systems or those of third
parties;
the effectiveness of strategies to recruit and retain key personnel and to
implement effective succession plans;
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;
concentrations in AIG’s investment portfolios;changes to the valuation of AIG’s investments;
AIG’s ability to successfully dispose of, monetize and/or acquire businesses orassets or successfully integrate acquired businesses;changes in judgments concerning the recognition of deferred tax assets andthe impairment of goodwill;
the effectiveness of our risk management policies and procedures, including
with respect to our business continuity and disaster recovery plans; andsuch other factors discussed in Part I, Item 2. Management’s Discussion andAnalysis of Financial Condition and Results of Operations (MD&A) and Part II,
Item 1A. Risk Factors in AIG’s Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2020 (which will be filed with the Securities andExchange Commission), 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,
2019.

COVID-19 is adversely affecting, and is expected to continue to adversely affect, ourbusiness, financial condition and results of operations, its ultimate impact of which will
depend on future developments that are uncertain and cannot be predicted, including
the scope and duration of the crisis and actions taken by governmental and regulatory
authorities in response thereto. Even after the crisis subsides, it is possible that the
U.S. and other major economies will experience a prolonged recession, in which event
our businesses, results of operations and financial condition could be materially andadversely affected. Statements about the effects of COVID-19 on our business, financial
condition and results of operations may constitute forward-looking statements and are
subject to the risk that the actual impacts may differ, possibly materially, from what isreflected in those forward-looking statements due to factors and future developments that
14

FOR IMMEDIATE RELEASE

are uncertain, unpredictable and in many cases beyond our control, including the scopeand duration of the COVID-19 and actions taken by governmental and regulatory
authorities in response to mitigate its impact.
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 orotherwise.
###

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 andrepresentative of its business results. Some of the measurements AIG uses are “nonGAAP financial measures” under Securities and Exchange Commission rules andregulations. 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 such measures to the most comparable GAAP measures in accordancewith Regulation G are included within the relevant tables attached to this news release orin the First Quarter 2020 Financial Supplement available in the Investors section of AIG’s
website, www.aig.com.
Book Value per Common Share, Excluding Accumulated Other Comprehensive
Income (AOCI), and Book Value per Common Share, Excluding AOCI and Deferred
Tax Assets (DTA) (Adjusted Book Value per Common Share) are used to show theamount of AIG’s net worth on a per-common share basis. AIG believes these measures
are useful to investors because they eliminate items that can fluctuate significantly fromperiod 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. These measures also eliminate the asymmetrical impact resulting from changes
in fair value of AIG’s available for sale securities portfolio wherein there is largely nooffsetting impact for certain related insurance liabilities. 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 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 thesebook value per common share metrics. Book value per common share, excluding AOCI,
is derived by dividing Total AIG common shareholders’ equity, excluding AOCI, by totalcommon shares outstanding. Adjusted Book Value per Common Share is derived by
dividing Total AIG common shareholders’ equity, excluding AOCI 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) and Other Intangible
15

FOR IMMEDIATE RELEASE

Assets (Tangible Book Value per Common Share) and Tangible Book Value per
Common Share, Excluding AOCI and Deferred Tax Assets (DTA) (Adjusted
Tangible Book Value per Common Share) are used to provide more accurate measureof the realizable value of shareholder on a per-common share basis. Tangible Book Valueper Common Share is derived by dividing Total AIG common shareholders’ equity,
excluding Goodwill, VOBA, VODA and Other intangible assets, by total common shares
outstanding (Tangible Book Value per Common Share). Adjusted Tangible Book Valueper Common Share is derived by dividing Total AIG common shareholders’ equity,
excluding intangible assets, AOCI and DTA (Adjusted Tangible Common
Shareholders’ Equity), by total common shares outstanding.
AIG Return on Common Equity – Adjusted After-tax Income Excluding AOCI andDTA (Adjusted Return on Common Equity) is used to show the rate of return oncommon shareholders’ equity. AIG believes this measure is useful to investors because iteliminates items that can fluctuate significantly from period to period, including changes infair 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 theasymmetrical 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. 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
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.
AIG Return on Common Equity, Excluding Goodwill, Value of Business Acquired(VOBA), Value of Distribution Channel Acquired (VODA) and Other Intangible
assets (Return on Tangible Common Equity) and Return on Tangible Common
Equity – Adjusted After-tax Income, Excluding Goodwill, Value of Business
Acquired (VOBA), Value of Distribution Channel Acquired (VODA) and Other
Intangible assets, AOCI and DTA (Adjusted Return on Tangible Common Equity) isused to provide the rate of return on tangible common shareholder’s equity, which is amore accurate measure of realizable shareholder value. AIG excludes Goodwill, VOBA,
VODA and Other intangible assets from AIG common shareholders’ equity to drive
tangible common shareholders’ equity (AIG Tangible Common Shareholders’ Equity).
Return on Tangible Common Equity is derived by dividing actual or annualized after-tax
income attributable to AIG common shareholders by average Tangible Common
Shareholders’ Equity. AIG further excludes AOCI and DTA in Adjusted Tangible Common
Equity. Adjusted Return on Tangible Common Equity is derived by dividing actual or
annualized adjusted after-tax income attributable to AIG common shareholders by
average Adjusted Tangible Common Shareholders’ Equity.
Core and Life and Retirement Adjusted Attributed Common Equity is an attribution of
total AIG Adjusted Common Shareholders’ Equity to these segments based on AIG’s
16

FOR IMMEDIATE RELEASE

internal capital model, which incorporates the segments’ respective risk profiles. Adjusted
attributed common equity represents AIG’s best estimates based on current facts andcircumstances and will change over time.
Core and Life and Retirement Return on Common Equity – Adjusted After-tax
Income (Adjusted Return on Attributed Common Equity) is used to show the rate of
return on Adjusted Attributed Common Equity. Adjusted Return on Attributed Common
Equity is derived by dividing actual or annualized Adjusted After-tax Income by Average
Adjusted Attributed Common Equity.
Adjusted After-tax Income Attributable to Core and Life and Retirement is derived bysubtracting attributed interest expense, income tax expense and attributed dividends on
preferred stock from adjusted pre-tax income. Attributed debt and the related interest
expense and dividends on preferred stock are calculated based on AIG’s internal capitalmodel. Tax expense or benefit is calculated based on an internal attribution methodologythat considers among other things the taxing jurisdiction in which the segments conductbusiness, as well as the deductibility of expenses in those jurisdictions.
Adjusted Revenues exclude Net realized capital gains (losses), income from nonoperating litigation settlements (included in Other income for GAAP purposes) andchanges 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 operating segments.
AIG uses the following operating performance measures because AIG believes theyenhance the understanding of the underlying profitability of continuing operations andtrends of AIG’s business segments. AIG believes they also allow for more meaningfulcomparisons with AIG’s insurance competitors. 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 fromincome from continuing operations before income tax. This definition 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 oftransactions; and measures that AIG believes to be common to the industry. APTI is a

17

FOR IMMEDIATE RELEASEGAAP measure for AIG’s segments. Excluded items include the following:• changes in fair value of securities used
to hedge guaranteed living benefits;• pension expense related to a onetime lump sum payment to former
employees;• changes in benefit reserves anddeferred policy acquisition costs (DAC), • income and loss from divested
value of business acquired (VOBA),
businesses;
and sales inducement assets (SIA)• non-operating litigation reserves andrelated to net realized capital gains andsettlements;
losses;• restructuring and other costs related• changes in the fair value of equity
to initiatives designed to reduce
securities;
operating expenses, improve• loss (gain) on extinguishment of debt;
efficiency and simplify AIG’sorganization;• all net realized capital gains and losses
except earned income (periodic• the portion of favorable orsettlements and changes in settlement
unfavorable prior year reserve
accruals) on derivative instruments
development for which AIG has
used for non-qualifying (economic)
ceded the risk under retroactive
hedging or for asset replication. Earned
reinsurance agreements and related
income on such economic hedges ischanges in amortization of thereclassified from net realized capitaldeferred gain;
gains and losses to specific APTI line
• integration and transaction costs
items based on the economic risk
associated with acquired businesses;
being hedged (e.g. net investment• losses from the impairment ofincome and interest credited togoodwill; andpolicyholder account balances);• income or loss from discontinued
operations;• net loss reserve discount benefit(charge);• non-recurring costs associated with
the implementation of non-ordinary
course legal or regulatory changes orchanges to accounting principles.

Adjusted After-tax Income attributable to AIG common shareholders (AATI) is
derived by excluding the tax effected APTI adjustments described above, 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 capital gains (losses) from noncontrolling interests.

See page 21 for the reconciliation of Net income attributable to AIG to Adjusted After-tax
Income Attributable to AIG.
18

FOR IMMEDIATE RELEASE

Ratios: AIG, along with most property and casualty insurance companies, uses the loss
ratio, the expense ratio and the combined ratio as measures of underwriting performance.
These ratios are relative measurements that describe, for every $100 of net premiums
earned, the amount of losses and loss 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 calculatedusing the relevant segment information calculated under GAAP, and thus may not becomparable 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 ofcapital, regulation, product type and competition can have an effect on pricing andconsequently on profitability as reflected in underwriting income and associated ratios.
Accident year loss and combined ratios, as adjusted: both the accident year loss
and combined ratios, as adjusted, exclude catastrophe losses and related
reinstatement premiums, prior year development, net of premium adjustments, andthe impact of reserve discounting. Natural catastrophe losses are generally weather orseismic events having a net impact on AIG in excess of $10 million each and manmade catastrophe losses, such as terrorism and civil disorders that exceed the $10
million threshold. AIG believes that as adjusted ratios are meaningful measures of
AIG’s underwriting results on an ongoing basis as they exclude catastrophes and theimpact of reserve discounting which are outside of management’s control. AIG also
excludes prior year development to provide transparency related to current accident
year results.
Underwriting ratios are computed as follows:a) Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned(NPE)b) Acquisition ratio = Total acquisition expenses ÷ NPEc) General operating expense ratio = General operating expenses ÷ NPEd) Expense ratio = Acquisition ratio + General operating expense ratioe) Combined ratio = Loss ratio + Expense ratiof) Accident year loss ratio, as adjusted (AYLR) = [Loss and loss adjustment
expenses incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement premiums related
to 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]g) Accident year combined ratio, as adjusted = AYLR + Expense ratioh) Catastrophe losses (CATs) and reinstatement premiums = [Loss and loss
adjustment expenses incurred – (CATs)] ÷ [NPE +/(-) CYRIPs] – Loss ratioi) Prior year development net of (additional) return premium related to PYD on loss
sensitive business = [Loss and loss adjustment expenses incurred – CATs –PYD] ÷ [NPE +/(-) CYRIPs +/(-) PYRIPs + (AP)RP] – Loss ratio – CAT ratio
19

FOR IMMEDIATE RELEASE

Premiums and deposits: includes direct and assumed amounts received and earned on
traditional life insurance policies, group benefit policies and life-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 morethan 80 countries and jurisdictions. These diverse offerings include products and services that help businesses andindividuals 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 byreference into this press release.
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations ofAmerican International Group, Inc. For additional information, please visit our website at www.aig.com. All products andservices are written or provided by subsidiaries 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.

20

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

Reconciliations of Adjusted Pre-tax and After-tax Income
Three Months Ended March 31,
2020

Pre-tax income/net income, including noncontrollinginterests
Noncontrolling interests
Pre-tax income/net income attributable to AIG
Dividends on preferred stock
Net income attributable to AIG common shareholders
Adjustments:
Changes in uncertain tax positions and other tax adjustments
Deferred income tax valuation allowance (releases) charges(a)Changes in fair value of securities used to hedge
guaranteed living benefits
Changes in benefit reserves and DAC, VOBA andSIA related to net realized capital gains (losses)
Changes in the fair value of equity securities
Favorable prior year development and related
amortization changes ceded under retroactive reinsurance
agreements(Gain) loss on extinguishment of debt
Net realized capital (gains) losses(b)(Income) loss from divested businesses
Non-operating litigation reserves and settlements
Net loss reserve discount charge
Integration and transaction costs associated with acquired
businesses
Restructuring and other costs
Professional fees related to regulatory or accounting changes
Noncontrolling interests primarily related to net realized capitalgains (losses) of Fortitude Holdings' standalone results(c)Adjusted pre-tax income/Adjusted after-tax income
attributable to AIG common shareholders

2019

Pre-tax

Tax EffectNoncontrolling
Interests(c)$ 2,558
2,558

$

$

$

904
904

After-tax

Pre-tax

Tax EffectNoncontrolling
Interests(c)After-tax

95
95$ 1,654
95
1,749
7
1,742

$ 1,154
1,154

$

$

$

217
217

(283)
(283)

937
(283)
654
654

-

(5)
(283)

-

5
283

-

12
38

-

(12)
(38)

7

2

-

5

(96)

(20)

-

(76)

538
191

113
40

-

425
151

(99)
(79)

(21)
(17)

-

(78)
(62)

(8)
17
(3,502)
216
(6)
56

(2)
4
(767)
45
(1)
12

-

(6)
13
(2,735)
171
(5)
44

(27)
(2)
474
(6)
1
473

(5)
(1)
109
(1)
1
99

-

(22)
(1)
365
(5)
374

2
90
13

19
3

-

2
71
10

7
47
-

2
10
-

-

5
37
-

-

-

(77)

(77)

-

-

247

247

99

$ 1,847(36)$ 1,388

172

$

84

$

18

$

$

423

$

(a) First quarter 2020 includes valuation allowance established against a portion of foreign tax credit and separate return limitation year net operating loss carryforwards of AIG’s U.S. federal
consolidated income tax group.
(b) Includes all net realized capital 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.
(c) Noncontrolling interests is 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 is allocated 19.9 percent of Fortitude Holdings’ standalone financial results. Fortitude Holdings’ results are mostly eliminated in AIG’s consolidated income fromcontinuing operations given that its results arise from intercompany transactions. Noncontrolling interests is calculated based on the standalone financial results of Fortitude Holdings. The mostsignificant component of Fortitude Holdings’ standalone results is the change in fair value of the embedded derivatives which changes with movements in interest rates and credit spreads, andwhich is recorded in net realized capital gains and losses of Fortitude Holdings. In accordance with AIG's adjusted after-tax income definition, realized capital gains and losses are excluded fromnoncontrolling interests.

21

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

Summary of Key Financial Metrics
Three Months Ended March 31,
2020
2019
% Inc. (Dec.)

Earnings per common share:
Basic
Income from continuing operations
Income from discontinued operations
Net income attributable to AIG common shareholders
DilutedIncome from continuing operations
Income from discontinued operations
Net income attributable to AIG common shareholders
Adjusted after-tax income attributable to AIG commonshareholders per diluted share
Weighted average shares outstanding:
Basic
DilutedAs of period end:
Total AIG shareholders' equity
Less: Preferred equity
Total AIG common shareholders' equity (a)Less: Accumulated other comprehensive income (AOCI)
Total AIG common shareholders' equity, excluding AOCI (b)Less: Deferred tax assets (DTA)*
Total adjusted AIG common shareholders' equity (c)Less: Intangible assets:
Goodwill
Value of business acquired
Value of distribution channel acquired
Other intangibles
Total intangible assets
Total AIG common shareholders' equity less intangible assets (d)Total adjusted tangible common shareholders' equity (e)Total common shares outstanding (f)As of period end:
Book value per common share (a÷f)
Book value per common share, excluding AOCI (b÷f)
Adjusted book value per common share (c÷f)
Tangible book value per common share (d÷f)
Adjusted tangible book value per common share (e÷f)

$

1.99
1.99

$

$

$

1.98
1.98

$

0.11

$
$

0.75
0.75

165.3 %
NM
165.3

$

0.75
0.75

164.0
NM
164.0

$

1.58

(93.0) %

$

874.2
878.9

March 31, 2020
60,173485
59,688(994)
60,682
8,535
52,147

$

$

$

$

3,989
297
526
329
5,141
54,54747,006861.3$$

March 31,
2020
69.30
70.45
60.55
63.33
54.58

875.4
877.5

December 31, 2019
65,675
485
65,190
4,982
60,208
8,977
51,231

$

$

4,038
317
536
333
5,224
59,96646,007870.0$

December 31,
2019
$
74.93
69.20
58.89
68.93
52.88

% Inc.
(Dec.)(7.5) %
1.8
2.8
(8.1)
3.2

March 31, 201960,787
485
60,302
2,128
58,174
9,926
48,248
4,103
421
564
340
5,428
54,87442,820869.7$$

March 31,
2019
69.33
66.89
55.47
63.10
49.24

% Inc.
(Dec.)
-%
5.3
9.2
0.4
10.8

Three Months Ended
March 31, 2020
March 31, 2019
Actual or Annualized net income attributable to AIG common shareholders (g)Actual or Annualized adjusted after-tax income attributable to AIG common shareholders (h)Average AIG common shareholders' equity (i)Less: Average intangible assets
Average AIG tangible common shareholders' equity (j)$$$Average AIG common shareholders' equity
Less: Average AOCI
Less: Average DTA*
Average adjusted common shareholders' equity (k)Less: Average intangible assets
Average adjusted tangible common shareholders' equity (m)ROCE (g÷i)
Adjusted return on common equity (h÷k)
Return on tangible common equity (g÷j)
Adjusted return on tangible common equity (h÷m)

$

$

$

6,968
396
62,4395,183
57,256$$$62,4391,994
8,756
51,6895,183
46,50611.2 %
0.8 %
12.2 %
0.9 %

$

$

$

2,616
5,552
58,332
5,439
52,89358,332358
10,04047,934
5,439
42,495
4.5 %
11.6 %
4.9 %
13.1 %* 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.

22

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation($ in millions, except per common share amounts)
Reconciliations of Life and Retirement Adjusted Return on Common Equity
Three Months Ended
March 31,
2020
2019
Adjusted pre-tax income
Interest expense on attributed financial debt
Adjusted pre-tax income including attributed interest expense
Income tax expense
Adjusted after-tax income
Dividends declared on preferred stock
Adjusted after-tax income attributable to common shareholders

$

574
61
513
99
414
3
411

$

924
37
887
176
711
711

Ending adjusted attributed common equity
Average adjusted attributed common equity
Adjusted return on attributed common equity$$

19,661
19,587
8.4 %$$

18,28018,98815.0 %

Reconciliations of Core Adjusted Return on Common Equity
Three Months Ended
March 31,
2020
2019
Adjusted pre-tax income
Interest expense on attributed financial debt
Adjusted pre-tax income including attributed interest expense
Income tax expense
Adjusted after-tax income
Dividends declared on preferred stock
Adjusted after-tax income attributable to common shareholders

$

540
540
162
378
7
371

$

1,735
1,735
400
1,335
1,335

Ending adjusted attributed common equity
Average adjusted attributed common equity
Adjusted return on attributed common equity$$

44,30544,2593.4 %$$40,79839,76713.4 %Net Premiums Written - Change in Constant Dollar
Three Months Ended
March 31, 2020

General Insurance - International
Foreign exchange effect on worldwide premiums:
Change in net premiums written
Increase (decrease) in original currency
Foreign exchange effect
Increase (decrease) as reported in U.S. dollars(8.3) %
(0.5)
(8.8) %

Reconciliation of Net Investment Income

Net investment income per Consolidated Statements of Operations
Changes in fair value of securities used to hedge guaranteed living benefits
Changes in the fair value of equity securities
Net realized capital gains related to economic hedges and otherTotal Net investment income - APTI Basis

23

$

$

Three Months Ended
March 31,
2020
2019
2,508
$
3,879
(13)
(105)
191
(79)
13
23
2,699
$
3,718

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per common share amounts)
Reconciliations of Premiums and Deposits
Three Months Ended
March 31,20202019Individual Retirement:
Premiums
Deposits
Other
Total premiums and deposits
Group Retirement:
Premiums
Deposits
Other
Total premiums and depositsLife Insurance:
Premiums
Deposits
Other
Total premiums and deposits
Institutional Markets:
Premiums
Deposits
Other
Total premiums and deposits
Total Life and Retirement:
Premiums
Deposits
Other
Total premiums and deposits

24

$

$
$

$
$

$
$

$
$

$

41
3,078
(3)
3,116

$

6
1,849
1,855

$

419
402
194
1,015

$

757
152
8
917

$

1,223
5,481
199
6,903

$

$

$

$

$

$

11
4,175
4,186
4
2,059
2,063
395
406
194
995
819
286
7
1,112
1,229
6,926
201
8,356