AIG Reports Fourth Quarter and Full Year 2021 Results
February 16, 2022
General Insurance net premiums written grew 7% in the fourth quarter of 2021 compared to the prior year quarterand 13% for the full year driven by Global Commercial Lines growth of 13% in the fourth quarter and 18% for thefull year
General Insurance combined ratio in the fourth quarter of 2021 improved by 10.4 points from the prior year quarterto 92.4% and, on an as adjusted* basis, improved by 3.1 points to 89.8%
Net income per diluted common share in the fourth quarter of 2021 was $4.38, compared to a net loss percommon share of $0.07 in the prior year quarter, and adjusted after-tax income* (AATI) per diluted common share
was $1.58, an increase of 68% from $0.94 in the prior year quarter$10.7 billion of AIG Parent liquidity at year end 2021
Repurchased $1 billion of AIG common stock and $1 billion used towards debt reduction in the fourth quarter of2021; for the full year, reduced debt by $4 billion and returned $3.7 billion to shareholders through $2.6 billion of
AIG common stock repurchases and $1.1 billion of dividends
Book value and adjusted tangible book value* per common share increased 5% and 23%, respectively, from theprior year; up 4% and 12%, respectively, from September 30, 2021
FOURTH QUARTER NOTEWORTHY ITEMSGeneral Insurance adjusted pre-tax income (APTI) of $1.5 billion reflects strong underwriting results; the combined ratio
was 92.4, a 10.4 point improvement from the prior year quarter primarily due to strong underwriting results across theportfolio, including lower catastrophe (CATs) losses, net of reinsurance.
Life and Retirement APTI of $969 million reflects higher fee income, more than offset by lower net investment income andunfavorable mortality; Life and Retirement return on adjusted segment common equity* for the fourth quarter was 13.7%,
on an annualized basis.
Net income attributable to AIG common shareholders was $3.7 billion, or $4.38 per diluted common share, compared to a
net loss of $60 million, or $0.07 per common share, in the prior year quarter.
AATI was $1.3 billion, or $1.58 per diluted common share, compared to $827 million, or $0.94 per diluted common share,in the prior year quarter due to strong underwriting performance in General Insurance.
Total debt and preferred stock to total capital was 24.6% at December 31, 2021 down from 26.1% at September 30, 2021.
As of December 31, 2021, book value per common share was $79.97, an increase of 5% from December 31, 2020.
Adjusted book value per common share* was $68.83, an increase of 21% from December 31, 2020. Adjusted tangible
book value per share was $62.82, an increase of 23% from December 31, 2020.
Return on common equity (ROCE) and Adjusted ROCE* were 23.0% and 9.9%, respectively, on an annualized basis forthe fourth quarter of 2021.
* Refers to financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP
measures and reconciliations to their closest GAAP measures can be found in this news release under the heading Comment on Regulation G and
Non-GAAP Financial Measures.
NEW YORK--(BUSINESS WIRE)--Feb. 16, 2022-- American International Group, Inc. (NYSE: AIG) today reported financial results for the fourth
quarter and full year ended December 31, 2021.
AIG Chairman & CEO Peter Zaffino said: “In the fourth quarter and full year 2021, AIG delivered outstanding financial results with General Insurance
continuing to produce improved underwriting profitability through excellent top line growth and vastly reduced volatility due to gross limit reductions
and the strategic use of reinsurance, and Life and Retirement again making a meaningful contribution to our overall results. We ended the year withparent liquidity of $10.7 billion.
“The quality of these outcomes is due to our global colleagues’ hard work, dedication and commitment to excellence in everything we do.
“General Insurance succeeded in producing more consistent underwriting results while achieving 13% net premiums written growth for the full yearwith 18% growth in Commercial Lines. The business reported an underwriting profit for full year 2021 and for every quarter of the year, due todisciplined execution and volatility reduction in an environment of ever-increasing natural catastrophe risk. The accident year combined ratio, as
adjusted, in the fourth quarter was 89.8%. For the full year, the accident year combined ratio, as adjusted, was 91.0%, driven by Global Commercial,which was 89.1%.
“Life and Retirement delivered another solid quarter due to its diversified business, increased annuity sales and the favorable impact of equity markets
on both the investment portfolio and fee income. APTI increased 10.8% in the full year and return on adjusted segment common equity remainedstrong at 14.2%.
“Since announcing our intent to separate Life and Retirement from AIG, we have made significant progress in preparing the business to be an
independent, standalone company, including closing on the sale of a 9.9% equity stake to Blackstone in November 2021.
“Over the course of 2021, we reduced debt and preferred stock leverage by 380 basis points to 24.6% by repurchasing $4 billion of debt, and wereturned $3.7 billion to shareholders through common stock repurchases and dividends.
“AIG entered 2022 better, stronger, and well positioned to continue to deliver value to all stakeholders as we continue our journey to be a top
performing company.”
For the full year of 2021, pre-tax income from continuing operations was $12.1 billion compared to a pre-tax loss from continuing operations of $7.3
billion in the prior year. Full year 2021 net income attributable to AIG common shareholders was $9.4 billion, or $10.82 per diluted common share,compared to a net loss of $6.0 billion, or $6.88 per common share, in the prior year. The increase was primarily due to overall strong General
Insurance underwriting results, including lower CATs, higher net investment income, particularly within the alternative investments portfolio, net
realized gains in the current year compared to net realized losses in the prior year and gains on divestitures in the current year compared to losses in
the prior year. These pre-tax increases were partially offset by higher income tax expense primarily due to higher income from operations.
AATI was $4.4 billion, or $5.12 per diluted common share, for the full year of 2021 compared to $2.2 billion, or $2.52 per diluted common share, in theprior year. The increase was primarily due to higher net investment income and strong General Insurance underwriting results.
For the fourth quarter of 2021, pre-tax income from continuing operations was $5.0 billion compared to a pre-tax loss from continuing operations of$558 million in the prior year quarter. Fourth quarter of 2021 net income attributable to AIG common shareholders was $3.7 billion, or $4.38 per diluted
common share, compared to a net loss of $60 million, or $0.07 per common share, in the prior year quarter. The increase was primarily due to overallstrong General Insurance underwriting results, including lower CATs, net realized gains in the current year compared to net realized losses in the prioryear and gains on divestitures in the current year. These pre-tax increases were partially offset by higher income tax expense primarily due to higher
income from operations.
AATI was $1.3 billion, or $1.58 per diluted common share, for the fourth quarter of 2021 compared to $827 million, or $0.94 per diluted common share,in the prior year quarter. The increase was primarily due to strong General Insurance underwriting results.
Total consolidated net investment income for the fourth quarter of 2021 was $3.6 billion, down 10% from $4.0 billion in the prior year quarter primarily
due to lower returns from fair value option equity and fixed income securities, partially offset by strong income on alternative investments principallyfrom private equity. Total net investment income on an APTI basis* was $3.3 billion, an increase of $65 million compared to the prior year quarterreflecting higher private equity income.
Book value per common share was $79.97 as of December 31, 2021, an increase of 5% from December 31, 2020 and 4% from September 30, 2021.
Adjusted book value per common share was $68.83, an increase of 21% from December 31, 2020 and 11% from September 30, 2021 reflecting
growth in retained earnings from net income in excess of dividends and share repurchases. Adjusted tangible book value per share was $62.82, anincrease of 23% from December 31, 2020 and 12% from September 30, 2021.
As of December 31, 2021, AIG parent liquidity was $10.7 billion, up $5.4 billion from September 30, 2021 primarily driven by the receipt of cash
proceeds from the Blackstone transactions, partially offset by share repurchases, dividends, and debt repurchases and redemptions. AIG repurchased
approximately 17 million shares of AIG common stock during the fourth quarter for an aggregate purchase price of $1 billion. Additionally, $1 billion
was used towards debt reduction via tender offers, private transactions, and make-whole redemptions. AIG’s total debt and preferred stock to total
capital leverage at December 31, 2021 was 24.6%, down from 26.1% at September 30, 2021.
Today, the AIG Board of Directors declared a quarterly cash dividend of $0.32 per share on AIG common stock (NYSE: AIG). The dividend is payable
on March 31, 2022 to stockholders of record at the close of business on March 17, 2022.
The AIG Board of Directors also declared a quarterly cash dividend of $365.625 per share on AIG Series A 5.85% Non-Cumulative Perpetual
Preferred Stock, with a liquidation preference of $25,000 per share, which is represented by depositary shares (NYSE: AIG PRA), each representing a
1/1,000th interest in a share of preferred stock. Holders of depositary shares will receive $0.365625 per depositary share. The dividend is payable on
March 15, 2022 to holders of record at the close of business on February 28, 2022.
FINANCIAL SUMMARY
Three Months Ended Twelve Months Ended
December 31,
December 31,($ in millions, except per common share amounts)

2020

2021

2020

2021

)

$ 3,739$ (5,973 )$ 9,359$ (0.07 )$ 4.38$ (6.88 )$ 10.82

Net income (loss) attributable to AIG common shareholders $ (60Net income (loss) per diluted share attributable to
AIG common shareholders (a)Adjusted pre-tax income (loss)$ 1,116$ 1,830$ 3,003$ 5,920

General Insurance

809

1,509

1,901

4,359

Life and Retirement

1,027

969

3,531

3,911

Other Operations(720 )(648 )(2,429 )(2,350 )Net investment income$ 3,957$ 3,565$ 13,631$ 14,612

3,226

3,291

12,321

12,940$ 827$ 1,339$ 2,201$ 4,430$ 0.94$ 1.58$ 2.52$ 5.12- diluted (in millions) (a)

868.4

872.0

869.3

864.9

Return on common equity

(0.4

)%

23.0 %(9.4)% 14.5%

Adjusted return on common equity

6.7

%

9.9

4.4

%

%

Net investment income, APTI basis

Adjusted after-tax income attributable to AIG commonshareholders
Adjusted after-tax income per diluted share attributable
to AIG common shareholders (a)Weighted average common shares outstanding%

8.6

Book value per common share$ 76.46$ 79.97$ 76.46$ 79.97

Adjusted book value per common share$ 57.01$ 68.83$ 57.01$ 68.83

Common shares outstanding (in millions)

861.6

818.7

861.6

818.7

(a) For periods reporting a loss, basic average common shares outstanding are used to calculate net income (loss) per diluted share attributable to
AIG common shareholders. Diluted shares represent basic shares for the three- and twelve-month periods ended December 31, 2020 because wereported a net loss attributable to AIG common shareholders from continuing operations in those periods. For the three-month period ended
December 31, 2021, an option for Blackstone Inc. to exchange all or a portion of its ownership interest in SAFG Retirement Services, Inc. for AIG
common shares was anti-dilutive and therefore excluded from the calculation of adjusted after-tax income per diluted share attributable to AIG
common shareholders.
The comparisons on the following pages are against the fourth quarter of 2020, unless otherwise indicated. Refer to the AIG Fourth Quarter 2021
Financial Supplement, which is posted on AIG's website in the Investors section, for further information.

GENERAL INSURANCE
Three Months Ended December 31,($ in millions)

2020

2021

Gross premiums written$ 7,135$ 8,013

12%

Net premiums written$ 5,565$ 5,961

7%

North America

2,361

2,642

12

North America Commercial Lines

1,992

2,208

11

North America Personal Insurance

369

434

18

International

3,204

3,319

4

International Commercial Lines

1,662

1,915

15

International Personal Insurance

1,542

1,404

(9

Underwriting income (loss)

Change)$ (171

)

$ 499

NM

North America

(389

)

152

NM

North America Commercial Lines

(285

)

135

NM

North America Personal Insurance

(104

)

17

NM

International

218

347

59

International Commercial Lines

138

239

73

International Personal Insurance

80

108

35

Net investment income, APTI basis$ 980$ 1,0103%

Adjusted pre-tax income$ 809$ 1,509

87

%

8.5

pts

Return on adjusted segment common equity

7.6

%

16.1

%

%

Underwriting ratios:
North America Combined Ratio (CR)

114.9

95.0

(19.9 ) pts

North America Commercial Lines CR

112.4

94.8

(17.6 )

North America Personal Insurance CR

133.2

96.0

(37.2 )

International CR

93.6

90.1

(3.5

)

International Commercial Lines CR

92.1

88.1

(4.0

)

International Personal Insurance CR

95.0

93.0

(2.0

)

General Insurance (GI) CR

102.8

92.4

(10.4 )GI Loss ratio

70.2

61.8

(8.4

) pts

Less: impact on loss ratio
Catastrophe losses and reinstatement premiums

(9.0

)

(2.9

)

6.1

premiums

(0.9

)

0.3

1.2

GI Accident year loss ratio, as adjusted

60.3

59.2

(1.1

)

GI Expense ratio

32.6

30.6

(2.0

)

GI Accident year combined ratio, as adjusted (AYCR)

92.9

89.8

(3.1

)

North America AYCR

94.7

89.7

(5.0

) pts

North America Commercial Lines AYCR

93.6

88.9

(4.7

)

North America Personal Insurance AYCR

102.6

94.9

(7.7

)

International AYCR

91.7

89.9

(1.8

)

International Commercial Lines AYCR

89.2

86.7

(2.5

)

International Personal Insurance AYCR

94.1

94.1

-

Prior year development, net of reinsurance and prior year

Accident year combined ratio, as adjusted (AYCR):

General Insurance

Net premiums written in the fourth quarter of 2021 increased 7% from the prior year quarter (8% on a constant dollar
basis) to $6.0 billion driven by strong North America Commercial Lines and International Commercial Lines growth of 11%
and 15% (16% on a constant dollar basis), respectively, reflecting strong incremental rate improvement, higher renewal
retentions and high levels of new business production. Additionally, North America Personal Insurance net premiums

written growth of 18% reflects a rebound in travel activity and lower reinsurance cessions. International Personal Insurance
net premiums written decreased 9% (down 5% on a constant dollar basis) compared to the prior year quarter primarily due
to underwriting actions taken to improve our portfolio mix and rate adequacy.
Fourth quarter 2021 APTI increased by $700 million to $1.5 billion from the prior year quarter due to significantly improved
underwriting results. Underwriting income was $499 million in the fourth quarter of 2021 compared to an underwriting lossof $171 million in the prior year quarter. The underwriting income included $189 million of CATs, predominantly fromtornadoes in the southern U.S. and wildfires, compared to $545 million in the prior year quarter, which included $178
million of estimated COVID-19 losses. Fourth quarter 2021 also included favorable net prior year loss reserve
development, net of reinsurance (PYD) of $44 million compared to unfavorable PYD of $45 million in the prior year quarter.
General Insurance generated strong underwriting results, with a combined ratio of 92.4, a 10.4 point decrease from 102.8
in the prior year quarter. The improvement reflects lower CATs and overall strong underwriting results driven by
improvements in both the loss and expense ratios of 8.4 points and 2.0 points, respectively. The General Insurance
accident year combined ratio, as adjusted, was 89.8, an improvement of 3.1 points from the prior year quarter and wascomprised of a 59.2 accident year loss ratio, as adjusted*, and an expense ratio of 30.6. The General Insurance accident
year loss ratio, as adjusted, improved by 1.1 points from the prior year quarter reflecting continued improvement in thecommercial business mix and quality of the portfolio. The General Insurance expense ratio improved 2.0 points from theprior year quarter reflecting continued general operating expense discipline, including benefits from the AIG 200 program,and higher net premiums earned as we grow the portfolio.
Commercial Lines underwriting results continued to show strong improvement due to better business mix and net
premiums written growth of 13% along with continued rate increases. The accident year combined ratio, as adjusted, forNorth America Commercial Lines improved 4.7 points to 88.9, and for International Commercial Lines improved 2.5 points
to 86.7 compared to the prior year quarter.
Personal Insurance underwriting results also improved driven by both North America and International. The North America
Personal Insurance accident year combined ratio, as adjusted, improved 7.7 points to 94.9 compared to the prior year
quarter reflecting changes in business mix and a rebound in travel activity. The International Personal Insurance accident
year combined ratio, as adjusted, was unchanged at 94.1 from the prior year quarter.

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

2020

2021

$ 1,027

$ 969

(6

) %

Individual Retirement

552

498

(10

)

Group Retirement

318

314

(1

)

Life Insurance

30

(8

) NM

Institutional Markets

127

165

30

Premiums and fees

$ 1,714$ 3,524

106

Individual Retirement

265

312

18

Group Retirement

124

140

13

Life Insurance

861

875

2

Adjusted pre-tax income (loss)

Change%Institutional Markets

464

2,197

373

Premiums and deposits$ 7,400$ 8,60916

Individual Retirement

2,758

3,308

20

Group Retirement

2,199

1,862

(15

Life Insurance

1,156

1,206

4

Institutional Markets

1,287

2,233

74

Net flows$ (1,031 ) $ (1,106 ) (7

Individual Retirement*

(878

)

(34

Group Retirement

(153

)

(1,072 ) NM

Net investment income, APTI basis$ 2,384$ 2,357

Return on adjusted segment common equity 16.0

% 13.7

%

)

) %

) 96

(1

) %

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

Life and Retirement reported APTI of $969 million for the fourth quarter of 2021, down 6% from $1,027 million in the prioryear quarter primarily due to unfavorable mortality in Life Insurance and increases in deferred policy acquisition costs
amortization and reserves predominantly in Individual Retirement and Group Retirement, partially offset by higher fee
income and alternative investment income across all segments. Additionally, our previously disclosed sensitivity of $65
million to $75 million per 100,000 population deaths remains consistent based on the reported fourth quarter COVIDrelated deaths in the United States.
Premiums were $2.7 billion, up from $1.0 billion in the prior year quarter driven by higher pension risk transfer sales in the
fourth quarter of 2021. Premiums and deposits, excluding deposits of the Retail Mutual Funds business that were sold toTouchstone in the third quarter of 2021 or were otherwise liquidated, increased 19%, or $1.3 billion, from the prior year
quarter to $8.6 billion due in part to the recovery from broad industry-wide sales disruption in 2020 resulting fromCOVID-19, strong performance through various sales channels, and higher pension risk transfer sales.
Individual and Group Retirement net flows were negative $1.1 billion for the fourth quarter of 2021. Individual Retirement
recorded reduced net outflows, excluding Retail Mutual Funds, of $34 million compared to net outflows of $189 million in
the prior year quarter, largely due to a recovery from the broad industry-wide sales disruption in 2020 and the strong sales
through various distribution channels. In the Group Retirement business, net outflows increased to $1.1 billion from $153
million in the prior year primarily driven by higher group and individual surrenders.
OTHER OPERATIONS
Three Months Ended
December 31,

($ in millions)

2020

2021

ChangeCorporate and Other$ (519) $ (577) (11 )%

Asset Management

91

Adjusted pre-tax loss before consolidation and eliminations(428

Consolidation and eliminations(292

Adjusted pre-tax loss

$ (720

399

338

)

(178

) 58

)

(470

) (61 )

) $ (648) 10 %

Other Operations

Fourth quarter adjusted pre-tax loss (APTL) was $648 million, including $470 million of reductions from consolidation andeliminations, compared to APTL of $720 million, including $292 million of reductions from consolidation and eliminations, inthe prior year quarter. The increase in consolidation and eliminations APTL reflects the elimination of the General
Insurance and Life and Retirement segment net investment income on their investment in consolidated investment entities
that is accounted for as realized gains or losses in consolidation.
Before consolidation and eliminations, the decrease in APTL reflects higher net investment income, primarily from realized
gains from property sales in the global real estate portfolio, and lower corporate interest expense resulting from 2021 debt
repayment activity, partially offset by higher corporate GOE including increased performance-based employeecompensation.
LIFE AND RETIREMENT SEPARATIONOn October 26, 2020, AIG announced its intention to separate its Life and Retirement business from AIG.
On November 2, 2021, AIG and Blackstone Inc. (Blackstone) completed the acquisition by Blackstone of a 9.9 percent
equity stake in SAFG Retirement Services, Inc. (SAFG), which is the holding company for AIG’s Life and Retirementbusiness, for $2.2 billion in an all cash transaction, subject to adjustment if the final pro forma adjusted book value isgreater or lesser than the target pro forma adjusted book value. As part of the separation, most of AIG’s investment
operations were transferred to SAFG or its subsidiaries as of December 31, 2021, and AIG entered into a long-term asset
management relationship with Blackstone to manage an initial $50 billion of Life and Retirement’s existing investment
portfolio beginning in the fourth quarter of 2021, with that amount increasing by increments of $8.5 billion per year for the
next five years beginning in the fourth quarter of 2022, for an aggregate of $92.5 billion. On November 1, 2021, SAFG
declared a dividend payable to AIG Parent in the amount of $8.3 billion. In connection with such dividend, SAFG issued apromissory note to AIG Parent in the amount of $8.3 billion, which will be required to be paid to AIG Parent prior to theinitial public offering of SAFG. As of February 16, 2022, no amounts have been paid under the promissory note. While wecurrently believe an initial public offering is the next step in the separation of the Life and Retirement business from AIG,
no assurance can be given regarding the form that future separation transactions may take or the specific terms or timing
thereof, or that a separation will in fact occur. Any separation transaction will be subject to the satisfaction of various
conditions and approvals, including approval by the AIG Board of Directors, receipt of insurance and other required
regulatory approvals, and satisfaction of any applicable requirements of the Securities and Exchange Commission (SEC).
Additionally, on December 15, 2021, AIG and Blackstone Real Estate Income Trust (BREIT), a long-term, perpetual capitalvehicle affiliated with Blackstone, completed the acquisition by BREIT of AIG’s interests in a U.S. affordable housing
portfolio for approximately $4.9 billion, in an all cash transaction, resulting in a pre-tax gain of approximately $3.0 billion.
The historical results of the U.S. affordable housing portfolio were reported in our Life and Retirement operating segments.
CONFERENCE CALL
AIG will host a conference call tomorrow, Thursday, February 17, 2022 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 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. 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,”“see,” “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 andassumptions 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 orregulatory changes, such as the separation of the Life and Retirement business, the effect of catastrophes, such as the COVID-19 pandemic, andmacroeconomic events, 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 and financial results, and other statements that are
not historical facts.
All forward-looking statements involve risks, uncertainties and other factors that may cause AIG’s actual results and financial condition to differ,possibly materially, from the results and financial condition expressed or implied in the forward-looking statements. Factors that could cause AIG’s
actual results to differ, possibly materially, from those in the specific projections, goals, assumptions and statements include, without limitation:

AIG's ability to successfully separate the Life and Retirement business and the impact any separation may have on AIG,
its businesses, employees, contracts and customers;
the occurrence of catastrophic events, both natural and man-made, including COVID-19, other pandemics, civil unrest andthe effects of climate change;
the effect of economic conditions in the markets in which AIG and its businesses operate in the U.S. and globally and anychanges therein, including financial market conditions, fluctuations in interest rates and foreign currency exchange rates
and inflationary pressures;
AIG's ability to effectively execute on the AIG 200 operational programs designed to modernize AIG's operating
infrastructure and enhance user and customer experiences, and AIG's ability to achieve anticipated cost savings from AIG
200;
the impact of potential information technology, cybersecurity or data security breaches, including as a result of supply chain
disruptions, cyber-attacks or security vulnerabilities, the likelihood of which may increase due to extended remote business
operations as a result of COVID-19;
the impact of COVID-19 and responses thereto, including new or changed governmental policy and regulatory actions, on
AIG's business, financial condition and results of operations;availability of reinsurance or access to reinsurance on acceptable terms;
disruptions in the availability of AIG's electronic data systems or those of third parties;changes to the valuation of AIG's investments;
actions by rating agencies with respect to AIG’s credit and financial strength ratings as well as those of its businesses andsubsidiaries;
concentrations in AIG’s investment portfolios, including as a result of our asset management relationship with Blackstone;
the effectiveness of strategies to recruit and retain key personnel and to implement effective succession plans;
the effectiveness of AIG’s enterprise risk management policies and procedures, including with respect to business
continuity and disaster recovery plans;changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill;
AIG’s ability to effectively execute on environmental, social, and governance targets and standards;
AIG’s ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired
businesses;
nonperformance or defaults by counterparties, including Fortitude Reinsurance Company Ltd. (Fortitude Re);changes in judgments concerning potential cost-saving opportunities;changes to our sources of or access to liquidity;changes in judgments or assumptions concerning insurance underwriting and insurance liabilities;
the requirements, which may change from time to time, of the global regulatory framework to which AIG is subject;significant legal, regulatory or governmental proceedings; andsuch other factors discussed in Part I, Item 1A. Risk Factors and Part II, Item 7. Management’s Discussion and Analysis ofFinancial Condition and Results of Operations (MD&A) in AIG’s Annual Report on Form 10-K for the year ended December
31, 2021 (which will be filed with the SEC), Part I, Item 2. MD&A in AIG’s Quarterly Report on Form 10-Q for the quarterly
period ended September 30, 2021, Part I, Item 2. MD&A of the Quarterly Report on Form 10-Q for the quarterly period
ended June 30, 2021, Part I, Item 2. MD&A of the Quarterly Report on Form 10-Q for the quarterly period ended March
31, 2021, and Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A in AIG’s Annual Report on Form 10-K for the year
ended December 31, 2020.
The forward-looking statements speak only as of the date of this press release, or in the case of any document incorporated by reference, the date ofthat document. AIG is not under any obligation (and expressly disclaims any obligation) to update or alter any projections, goals, assumptions or otherstatements, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise. Additional
information as to factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements isdisclosed from time to time in our other filings with the SEC.
COMMENT ON REGULATION G AND NON-GAAP FINANCIAL MEASURES
Throughout this press release, including the financial highlights, AIG presents its financial condition and results of operations in the way it believes will
be most meaningful and representative of its business results. Some of the measurements AIG uses are “Non-GAAP financial measures” under
Securities and Exchange Commission rules and regulations. GAAP is the acronym for generally accepted accounting principles in the United States.
The non-GAAP financial measures AIG presents are listed below and may not be comparable to similarly-named measures reported by othercompanies. The reconciliations of such measures to the most comparable GAAP measures in accordance with Regulation G are included within therelevant tables attached to this news release or in the Fourth Quarter 2021 Financial Supplement available in the Investors section of AIG’s website,www.aig.com.
AIG uses the following operating performance measures because AIG believes they enhance the understanding of the underlying profitability ofcontinuing operations and trends of AIG’s business segments. AIG believes they also allow for more meaningful comparisons with AIG’s insurancecompetitors. When AIG uses these measures, reconciliations to the most comparable GAAP measure are provided on a consolidated basis.
Book Value per Common Share, Excluding Accumulated Other Comprehensive Income (Loss) (AOCI) adjusted for the cumulative
unrealized gains and losses related to Fortitude Re funds withheld assets and Deferred Tax Assets (DTA) (Adjusted Book Value per
Common Share) is used to show the amount of AIG’s net worth on a per-common share basis after eliminating items that can fluctuate significantly
from period to period including changes in fair value of AIG’s available for sale securities portfolio, foreign currency translation adjustments and U.S.
tax attribute deferred tax assets. This measure also eliminates the asymmetrical impact resulting from changes in fair value of AIG’s available for salesecurities portfolio wherein there is largely no offsetting impact for certain related insurance liabilities. In addition, AIG adjusts for the cumulative
unrealized gains and losses related to Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG post
deconsolidation of Fortitude Re (Fortitude Re funds withheld assets) since these fair value movements are economically transferred to Fortitude Re.
AIG excludes deferred tax assets representing U.S. tax attributes related to net operating loss carryforwards and foreign tax credits as they have notyet been utilized. Amounts for interim periods are estimates based on projections of full year attribute utilization. As net operating loss carryforwards
and foreign tax credits are utilized, the portion of the DTA utilized is included in these book value per common share metrics. Adjusted Book Value per
Common Share is derived by dividing Total AIG common shareholders’ equity, excluding AOCI adjusted for the cumulative unrealized gains andlosses related to Fortitude Re funds withheld assets, and DTA (Adjusted Common Shareholders’ Equity ), by total common shares outstanding.
Book Value per Common Share, Excluding Goodwill, Value of Business Acquired (VOBA), Value of Distribution Channel Acquired (VODA),
Other Intangible Assets, AOCI adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets, andDeferred Tax Assets (DTA) (Adjusted Tangible Book Value per Common Share) is used to provide more accurate measure of the realizable valueof shareholder on a per-common share basis. Adjusted Tangible Book Value per Common Share is derived by dividing Total AIG commonshareholders’ equity, excluding intangible assets, AOCI adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld
assets, and DTA (Adjusted Tangible Common Shareholders’ Equity ), by total common shares outstanding.
AIG Return on Common Equity – Adjusted After-tax Income Excluding AOCI adjusted for the cumulative unrealized gains and losses related
to Fortitude Re funds withheld assets and DTA (Adjusted Return on Common Equity) is used to show the rate of return on commonshareholders’ equity. AIG believes this measure is useful to investors because it eliminates items that can fluctuate significantly from period to period,
including changes in fair value of AIG’s available for sale securities portfolio, foreign currency translation adjustments and U.S. tax attribute deferred
tax assets. This measure also eliminates the asymmetrical impact resulting from changes in fair value of AIG’s available for sale securities portfolio
wherein there is largely no offsetting impact for certain related insurance liabilities. In addition, AIG adjusts for the cumulative unrealized gains andlosses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re. AIG excludes
deferred tax assets representing U.S. tax attributes related to net operating loss carryforwards and foreign tax credits as they have not yet beenutilized. Amounts for interim periods are estimates based on projections of full year attribute utilization. As net operating loss carryforwards and foreign
tax credits are utilized, the portion of the DTA utilized is included in Adjusted Return on Common Equity. Adjusted Return on Common Equity is derived
by dividing actual or annualized adjusted after-tax income attributable to AIG common shareholders by average Adjusted Common Shareholders’Equity.
General Insurance and Life and Retirement Adjusted Segment Common Equity is based on segment equity adjusted for the attribution of debt
and preferred stock (Segment Common Equity) and is consistent with AIG’s Adjusted Common Shareholders’ Equity definition.
General Insurance and Life and Retirement Return on Adjusted Segment Common Equity – Adjusted After-tax Income (Return on Adjusted
Segment Common Equity) is used to show the rate of return on Adjusted Segment Common Equity. Return on Adjusted Segment Common Equity isderived by dividing actual or annualized Adjusted After-tax Income by Average Adjusted Segment Common Equity.
Adjusted After-tax Income Attributable to General Insurance and Life and Retirement is derived by subtracting attributed interest expense,
income tax expense and attributed dividends on preferred stock from APTI. Attributed debt and the related interest expense and dividends on
preferred stock are calculated based on AIG’s internal allocation model. Tax expense or benefit is calculated based on an internal attribution
methodology that considers among other things the taxing jurisdiction in which the segments conduct business, as well as the deductibility of
expenses in those jurisdictions.
Adjusted Revenues exclude Net realized gains (losses), income from non-operating litigation settlements (included in Other income for GAAP
purposes) and changes in fair value of securities used to hedge guaranteed living benefits (included in Net investment income for GAAP purposes).
Adjusted revenues is a GAAP measure for AIG’s segments.
Adjusted Pre-tax Income (APTI) is derived by excluding the items set forth below from income from continuing operations before income tax. Thisdefinition is consistent across AIG’s segments. These items generally fall into one or more of the following broad categories: legacy matters having no
relevance to AIG’s current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions;and measures that AIG believes to be common to the industry. APTI is a GAAP measure for AIG’s segments. Excluded items include the following:changes in fair value of securities used to hedge guaranteed living benefits;changes in benefit reserves and deferred policy acquisition costs (DAC), value ofbusiness acquired (VOBA), and deferred sales inducements (DSI) related to net
realized gains and losses;changes in the fair value of equity securities;
net investment income on Fortitude Re funds withheld assets;
following deconsolidation of Fortitude Re, net realized gains and losses on Fortitude
Re funds withheld assets;loss (gain) on extinguishment of debt;

income or loss from discontinued operations;net loss reserve discount benefit (charge);
pension expense related to lump sum
payments to former employees;
net gain or loss on divestitures;
non-operating litigation reserves andsettlements;
restructuring and other costs related toinitiatives designed to reduce operatingall net realized gains and losses except earned income (periodic settlements andchanges in settlement accruals) on derivative instruments used for non-qualifying(economic) hedging or for asset replication. Earned income on such economic hedges
is reclassified from net realized gains and losses to specific APTI line items based on
the economic risk being hedged (e.g. net investment income and interest credited topolicyholder account balances);

expenses, improve efficiency and simplify
AIG’s organization;
the portion of favorable or unfavorable prioryear reserve development for which AIG has
ceded the risk under retroactive reinsurance
agreements and related changes inamortization of the deferred gain;
integration and transaction costs associatedwith acquiring or divesting businesses;
losses from the impairment of goodwill; andnon-recurring costs associated with theimplementation of non-ordinary course legal
or regulatory changes or changes toaccounting principles.

Adjusted After-tax Income attributable to AIG common shareholders (AATI) is derived by excluding the tax effected APTI adjustments describedabove, dividends on preferred stock, noncontrolling interest on net realized gains (losses) and other non-operating expenses and the following tax
items from net income attributable to AIG:

deferred income tax valuation allowance releases and charges;changes in uncertain tax positions and other tax items related to legacy matters having no relevance to AIG’s current
businesses or operating performance; andnet tax charge related to the enactment of the Tax Cuts and Jobs Act (Tax Act).
See page 16 for the reconciliation of Net income attributable to AIG to Adjusted After-tax Income Attributable to AIG.
Ratios: AIG, along with most property and casualty insurance companies, uses the loss ratio, the expense ratio and the combined ratio as measuresof underwriting performance. These ratios are relative measurements that describe, for every $100 of net premiums earned, the amount of losses andloss adjustment expenses (which for General Insurance excludes net loss reserve discount), and the amount of other underwriting expenses thatwould be incurred. A combined ratio of less than 100 indicates underwriting income and a combined ratio of over 100 indicates an underwriting loss.
AIG’s ratios are calculated using the relevant segment information calculated under GAAP, and thus may not be comparable to similar ratios
calculated for regulatory reporting purposes. The underwriting environment varies across countries and products, as does the degree of litigation
activity, all of which affect such ratios. In addition, investment returns, local taxes, cost of capital, regulation, product type and competition can have aneffect on pricing and consequently on profitability as reflected in underwriting income and associated ratios.
Accident year loss and Accident year combined ratios, as adjusted (Accident year loss ratio, ex-CAT and Accident year combined ratio,
ex-CAT): both the accident year loss and accident year combined ratios, as adjusted, exclude catastrophe losses (CATs) and related reinstatement
premiums, prior year development, net of premium adjustments, and the impact of reserve discounting. Natural catastrophe losses are generally
weather or seismic events, in each case, having a net impact on AIG in excess of $10 million and man-made catastrophe losses, such as terrorism
and civil disorders that exceed the $10 million threshold. AIG believes that as adjusted ratios are meaningful measures of AIG’s underwriting results on
an ongoing basis as they exclude catastrophes and the impact of reserve discounting which are outside of management’s control. AIG also excludes
prior year development to provide transparency related to current accident year results.
Underwriting ratios are computed as follows:

1. Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned (NPE)
2. Acquisition ratio = Total acquisition expenses ÷ NPE
3. General operating expense ratio = General operating expenses ÷ NPE
4. Expense ratio = Acquisition ratio + General operating expense ratio
5. Combined ratio = Loss ratio + Expense ratio
6. CATs and reinstatement premiums = [Loss and loss adjustment expenses incurred – (CATs)] ÷ [NPE +/(-) Reinstatement
premiums related to catastrophes] – Loss ratio
7. Accident year loss ratio, as adjusted (AYLR ex-CAT) = [Loss and loss adjustment expenses incurred – CATs – PYD] ÷[NPE +/(-) Reinstatement premiums related to catastrophes +/(-) Prior year premiums + Adjustment for ceded premium
under reinsurance contracts related to prior accident years]
8. Accident year combined ratio, as adjusted (AYCR ex-CAT) = AYLR ex-CAT + Expense ratio
9. Prior year development net of reinsurance and prior year premiums = [Loss and loss adjustment expenses incurred – CATs
– PYD] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes +/(-) Prior year premiums] – Loss ratio – CATs andreinstatement premiums ratio.
Premiums and deposits: includes direct and assumed amounts received and earned on traditional life insurance policies, group benefit policies andlife‑contingent payout annuities, as well as deposits received on universal life, investment‑type annuity contracts, Federal Home Loan Bank (FHLB)
funding agreements and mutual funds. We believe the measure of premiums and deposits is useful in understanding customer demand for our
products, evolving product trends and our sales performance period over period.
Results from discontinued operations are excluded from all of these measures.
American International Group, Inc. (AIG) is a leading global insurance organization. AIG member companies provide a wide range of property casualty
insurance, life insurance, retirement solutions and other financial services to customers in approximately 80 countries and jurisdictions. These diverse

offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG
common stock is listed on the New York Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance
www.twitter.com/AIGinsurance | LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG have been
provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group,
Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates ofAmerican International Group, Inc. Products or services may not be available in all countries and jurisdictions, and coverage is subject to underwriting
requirements and actual policy language. Non-insurance products and services may be provided by independent third parties. Certain propertycasualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds
are therefore not protected by such funds.
American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation($ in millions, except per common share data)

Reconciliations of Adjusted Pre-tax and After-tax Income

Three Months Ended December 31,
2020

2021
Noncontrolling

Pre-tax

Tax
EffectInterests(d)Noncontrolling

After-tax Pre-tax

Tax
EffectInterests(d)After-tax

$ (16

$ 942

$

$ 4,106

Pre-tax income (loss)/net income (loss), including
noncontrollinginterests$ (558 ) $ (542 ) $-) $ 5,048-

Noncontrolling interests

-

-

(37

)

(37

)

-

-

(360

)

(360

Pre-tax income (loss)/net income (loss) attributable
to AIG(558 )(542 )

(37

)

(53

)

5,048

942

(360

)

3,746

Dividends on preferred stock7

Net income (loss) attributable to AIG commonshareholders

(60

)

7

)

3,739

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

-

336

-

(336 )-

97

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

-

157

-

(157 )

-

(12

)

-

(97

-

12

)

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

(17

)

(4

)

-

(13

)

-

(1

)

-

1

DSI related to net realized gains (losses)(217 )(46)-(171 )

(22

(4

)

-

(18

Changes in the fair value of equity securities(216 )(45)-(171 )

201

44

-

157

(Gain) loss on extinguishment of debt

(3

(1

)

-

(2

)

240

51

-

189

Net investment income on Fortitude Re funds withheld
assets(479 )(101 )-(378 )(483)(102 )-(381)

Net realized gains on Fortitude Re funds withheld
assets(335 )(71-(264 )

(467

)

(98

-

(369

)

embedded derivative

1,152

242

-

910

720

-

570

Net realized (gains) losses(c)

1,472

331

-

1,141

(403

-

(322

Loss from discontinued operations

-

-

-

-

-

-

-

-

Net gain on divestitures(127 )(106 )-(21)(2,936 )(627 )-(2,309 )Non-operating litigation reserves and settlements

(16

)

(3

)

-

(13

)

-

1

-

(1

amortization changes ceded under retroactive
reinsurance agreements(150 )(31)-(119 )

13

2

-

11

Net loss reserve discount (benefit) charge

475

100

-

375

(255

-

(202

Pension expense related to lump sum payments toformer employees

-

-

-

-

7

1

-

6

divesting businesses

5

1

-

4

28

6

-

22

Restructuring and other costs

111

23

-

88

129

27

-

102

Non-recurring costs related to regulatory or accountingchanges

19

4

-

15

10

3

-

7

Noncontrolling interests(d)

-

-

(1

-

-

222

222

Changes in benefit reserves and DAC, VOBA and

)

)

)

)

)

Net realized losses on Fortitude Re funds withheld
150
)

(81

)

)

)

Unfavorable (favorable) prior year development andrelated)(53)

Integration and transaction costs associated withacquiring or

Adjusted pre-tax income/Adjusted after-tax income
attributable

)

(1

)

)

to AIG common shareholders$ 1,116

$ 244

$

(38

)

$ 827

$ 1,830

$ 346

$

(138

)

$ 1,339

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)

Twelve Months Ended December 31,
2020

2021
Noncontrolling
Tax
EffectPre-tax

Interests(d)Noncontrolling

After-tax Pre-tax

Tax
EffectInterests(d)After-tax$ (5,829 ) $ 12,099$ 2,176$$ 9,923

Pre-tax income (loss)/net income (loss),including noncontrollinginterests$ (7,293 ) $ (1,460 ) $ -Noncontrolling interests

-

-

(115

)

(115

)

Pre-tax income (loss)/net income (loss)
attributable to AIG(7,293 )(1,460 )(115)(5,944 )

-

-

-

(535

)

(535

12,099

2,176

(535

)

9,388

Dividends on preferred stock29

29

Net income (loss) attributable to AIG commonshareholders(5,973 )9,359)

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

-

132

-

(132

)

-

998

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

-

65

-

(65

)

-

(718

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

(41

)

(9

)

-

(32

)

(61

(13

DSI related to net realized gains (losses)

(12

)

(3

)

-

(9

)

52

Changes in the fair value of equity securities

(200

)

(42

)

-

(158

)

237

)

-

(998

)

-

718

)

-

(48

11

-

41

49

-

188

Changes in benefit reserves and DAC, VOBA and))Loss on extinguishment of debt

122

Net investment income on Fortitude Re funds
withheld assets(1,053 )(221

Net realized gains on Fortitude Re funds withheld
assets

(463

(98

)

-

10

)

-

(832

)

-

(365

389

82

)

(1,971 )(414)(1,003 )

(211

-

307

)

-

(1,557 )

)

-

(792

-

477

-

(1,282 )---(2,394 )-2)

Net realized (gains) losses on Fortitude Re funds
withheld
embedded derivative

2,645

555

-

2,090

603

126

Net realized (gains) losses(c)

97

22

-

75

(1,623 )(341

Income from discontinued operations

-

-

-

(4

-

-

Net (gain) loss on divestitures

8,525

1,610

-

6,915

(3,044 )(650

Non-operating litigation reserves and settlements

(21

)

(4

)

-

(17

)

3

1

amortization changes ceded under retroactive
reinsurance agreements

(221

)

(46

)

-

(175

)

(186

)

(39

)

-

(147

)

Net loss reserve discount (benefit) charge

516

109

-

407

(193

)

(40

)

-

(153

)

Pension expense related to lump sum payments toformer employees

-

-

-

-

34

7

-

27

divesting businesses

12

3

-

9

83

18

-

65

Restructuring and other costs

435

91

-

344

433

91

-

342

Non-recurring costs related to regulatory or
accounting changes

65

14

-

51

68

15

-

53

Noncontrolling interests(d)

-

-

62

62

-

-

222

222

$ 720

$ (53

)

)

)

Favorable prior year development and related

Integration and transaction costs associated withacquiring or

Adjusted pre-tax income/Adjusted after-tax
income attributable
to AIG common shareholders$ 3,003)$ 2,201$ 5,920$ 1,148

$

(313

)

$ 4,430(a) The three months ended December 31, 2020 as well as twelve months ended December 31, 2021 and 2020 include the completion of audit
activity by the Internal Revenue Service. Twelve months ended December 31, 2020 includes the write-down of net operating loss deferred tax assets
in certain foreign jurisdictions, which is offset by valuation allowance release.
(b) The three months ended December 31, 2020 as well as twelve months ended December 31, 2021 and 2020 include valuation allowanceestablished against a portion of certain tax attribute carryforwards of AIG's U.S. federal consolidated income tax group, as well as valuation allowancechanges in certain foreign jurisdictions.

(c) Includes all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative
instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld
assets.
(d) For the year ended December 31, 2021, noncontrolling interests include realized non-operating gains on consolidated investment entities. Prior toJune 2, 2020, noncontrolling interests was primarily due to the 19.9 percent investment in Fortitude Group Holdings, LLC (Fortitude Holdings) by anaffiliate of The Carlyle Group L.P. (Carlyle), which occurred in the fourth quarter of 2018. Carlyle was allocated 19.9 percent of Fortitude Holdings’
standalone financial results through the June 2, 2020 closing date of the sale of a majority of the interests in Fortitude Holdings. Fortitude Holdings’
results were mostly eliminated in AIG’s consolidated income from continuing operations given that its results arose from intercompany transactions.
Noncontrolling interests was calculated based on the standalone financial results of Fortitude Holdings. The most significant component of Fortitude
Holdings’ standalone results was the change in fair value of the embedded derivatives which changes with movements in interest rates and credit
spreads, and which was recorded in net realized gains and losses of Fortitude Holdings. In accordance with AIG's adjusted after-tax income definition,
realized gains and losses are excluded from noncontrolling interests. Subsequent to the Majority Interest Fortitude Sale, AIG owns 3.5 percent of
Fortitude Holdings and no longer consolidates Fortitude Holdings in its financial statements as of such date. The minority interest in Fortitude Holdings
is carried at cost within AIG’s Other invested assets, which was $100 million as of December 31, 2021.
American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per common share data)

Summary of Key Financial Metrics
Three Months Ended December 31, Twelve Months Ended December 31,
Income (loss) per common share:

2020

2021

% Inc. (Dec.)

2020

2021

% Inc. (Dec.)$ (0.07) $ 4.48

NM

-

-

NM

-

) $ 4.48

NM$ (6.88) $ 10.95 NM$ (0.07) $ 4.38

NM$ (6.88) $ 10.82 NM

-

-

NM

-

) $ 4.38

NM$ (6.88) $ 10.82 NM$ 1.5868.1$ 2.52$ 5.12

Basic
Income (loss) from continuing operations
Income from discontinued operations

Net income (loss) attributable to AIG common shareholders $ (0.07%$ (6.88) $ 10.95 NM
-

%

NM

DilutedIncome (loss) from continuing operations
Income from discontinued operations

Net income (loss) attributable to AIG common shareholders $ (0.07-NM

Adjusted after-tax income attributable to AIG commonshareholders per diluted share (a)Weighted average shares outstanding:$ 0.94

%

103.2

%

Basic

868.4

833.9

869.3

854.3

Diluted (a)

868.4

872.0

869.3

864.9

(a) For the three-month period ended December 31, 2021, an option for Blackstone to exchange all or a portion of its ownership interest in SAFG for
AIG common shares was anti-dilutive and therefore 25,215,423 shares were excluded from the calculation of adjusted after-tax income per diluted
share attributable to AIG common shareholders. For the three- and twelve-month periods ended December 31, 2020, because we reported net losses
attributable to AIG common shareholders, all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted
shares and diluted per share amounts. However, because we reported adjusted after-tax income attributable to AIG common shareholders, thecalculation of adjusted after-tax income per diluted share attributable to AIG common shareholders includes 8,309,281 and 5,401,957 dilutive sharesfor the three- and twelve-month periods ended December 31, 2020, respectively.
Reconciliation of Book Value per Common Share

As of period end:

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

Total AIG shareholders' equity$

66,362$64,863$65,956

Less: Preferred equity

485

485

485

Total AIG common shareholders' equity (a)65,87764,37865,471

Less: Accumulated other comprehensive income (AOCI)

13,511

8,606

6,687

Funds Withheld Assets

4,657

2,966

2,791

Less: Deferred tax assets (DTA)*

7,907

7,083

5,221

Add: Cumulative unrealized gains and losses related to Fortitude Re

Total adjusted AIG common shareholders' equity (b)$49,116$51,655$56,354

Less: Intangible assets:
Goodwill

4,074

4,058

4,056

Value of business acquired

126

117

111

Value of distribution channel acquired

497

467

458

Other intangibles

319

302

300

Total intangible assets

5,016

4,944

4,925

Total adjusted tangible common shareholders' equity (c)$Total common shares outstanding (d)44,100$861.6

46,711$835.8

51,429818.7

December 31, % Inc. September 30, % Inc. December 31,
As of period end:

2020

(Dec.)

2021(Dec.)

2021

Book value per common share (a÷d)$ 76.46

4.6 % $ 77.03

3.8 % $ 79.97

Adjusted book value per common share (b÷d)

57.01

20.7

61.80

11.4

68.83

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

51.18

22.7

55.89

12.4

62.82

Reconciliation of Return On Common Equity

Three Months Ended Twelve Months Ended
December 31,
December 31,
2020

2020

2021

$ 14,956$ (5,973 )$ 9,359

Actual or Annualized net income attributable to AIG common shareholders (a)$ (240

Actual or Annualized adjusted after-tax income attributable to AIG common shareholders (b)$ 3,308$ 5,356$ 2,201$ 4,430

Average AIG common shareholders' equity (c)$ 64,750$ 64,925$ 63,225$ 64,704

12,245

7,647

7,529

9,096

Add: Average cumulative unrealized gains and losses related to Fortitude Re Funds Withheld Assets 4,525

2,879

2,653

3,200

Less: Average DTA*

8,015

6,152

8,437

7,025

$ 49,015$ 54,005

49,912

51,783

Less: Average AOCI

Average adjusted common shareholders' equity (d)

)

2021

ROCE (a÷c)(0.4)% 23.0% (9.4)% 14.5%

Adjusted return on common equity (b÷d)

6.7

%

% 4.4

%

%

9.9

8.6

* Represents deferred tax assets only related to U.S. net operating loss and foreign tax credit carryforwards on a U.S. GAAP basis and excludes otherbalance sheet deferred tax assets and liabilities.
American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per common share data)

Reconciliation of Net Investment Income

Three Months Ended Twelve Months Ended
December 31,

December 31,

2020

2021

2020

2021

Net investment income per Consolidated Statements of Operations$ 3,957$ 3,565$ 13,631$ 14,612

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

(14

)

(14

Changes in the fair value of equity securities

(216

)

201

Net investment income on Fortitude Re funds withheld assets

(479

)

(483

Net realized gains (losses) related to economic hedges and other(22)

Total Net investment income - APTI Basis$ 3,226

)

)

(56

)

(60

(200

)

237

(1,053 )(1,971 )

22

(1

122

$ 3,291$ 12,321)$ 12,940

Net Premiums Written - Change in Constant Dollar

Three Months Ended December 31, 2021
International General Insurance

International -General Insurance
Commercial Lines Personal Insurance

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

8

%

16

%

(5

)%

Foreign exchange effect

(1

)

(1

)

(4

)

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

7

%

15

%

(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
December 31,

)

2020

2021

Combined ratio

102.8

92.4

Catastrophe losses and reinstatement premiums

(9.0

)

(2.9

Prior year development, net of reinsurance and prior year premiums

(0.9

)

0.3

Accident year combined ratio, as adjusted

92.9

89.8

Combined ratio

114.9

95.0

Catastrophe losses and reinstatement premiums

(18.0

)

(5.6

Prior year development, net of reinsurance and prior year premiums

(2.2

)

0.3

Accident year combined ratio, as adjusted

94.7

89.7

Combined ratio

112.4

94.8

Catastrophe losses and reinstatement premiums

(17.4

)

(5.8

)

Prior year development, net of reinsurance and prior year premiums

(1.4

)

(0.1

)

Accident year combined ratio, as adjusted

93.6

88.9

Combined ratio

133.2

96.0

Catastrophe losses and reinstatement premiums

(22.6

)

(4.0

Prior year development, net of reinsurance and prior year premiums

(8.0

)

2.9

Accident year combined ratio, as adjusted

102.6

94.9

93.6

90.1

Total General Insurance)

North America)

North America - Commercial Lines

North America - Personal Insurance

International
Combined ratio)

Catastrophe losses and reinstatement premiums

(2.1

)

(0.6

Prior year development, net of reinsurance and prior year premiums

0.2

0.4

Accident year combined ratio, as adjusted

91.7

89.9

Combined ratio

92.1

88.1

Catastrophe losses and reinstatement premiums(4.0

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

International - Commercial Lines

)

(1.1

)

1.1

(0.3

)

89.2

86.7

Loss ratio

52.7

50.6

Catastrophe losses and reinstatement premiums--

Prior year development, net of reinsurance and prior year premiums(0.9

Accident year loss ratio, as adjusted

51.8

51.7

Combined ratio

95.0

93.0

Catastrophe losses and reinstatement premiums--

Prior year development, net of reinsurance and prior year premiums(0.9

Accident year combined ratio, as adjusted

94.1

International - Personal Insurance

)

)

1.1

1.1
94.1

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December 31,
2020

2021

$ 809

$ 1,509

Interest expense on attributed financial debt

145

150

Adjusted pre-tax income including attributed interest expense

664

1,359

Income tax expense

182

305

Adjusted after-tax income

482

1,054

Dividends declared on preferred stock33

Adjusted after-tax income attributable to common shareholders$ 479$ 1,051

Ending adjusted segment common equity$ 25,044$ 26,429

Average adjusted segment common equity$ 25,065$ 26,157

Return on adjusted segment common equity

7.6

Adjusted pre-tax income

Total segment shareholder’s equity

%

16.1

$ 26,214$ 26,283

Less: Preferred equity

192

205

Total segment common equity

26,022

26,078Less: Accumulated other comprehensive income (AOCI)

1,319

(189

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

341

162

$ 25,044$ 26,429

Total adjusted segment common equity%)

Reconciliation of Life and Retirement Return on Adjusted Segment Common Equity

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2020

2021

2020

2021

Adjusted pre-tax income$ 1,027$ 969$ 3,531$ 3,911

Interest expense on attributed financial debt

70

72

285

291

Adjusted pre-tax income including attributed interest expense

957

897

3,246

3,620

Income tax expense

185

181

640

724

Adjusted after-tax income

772

716

2,606

2,896

Dividends declared on preferred stock

2

2

8

8

Adjusted after-tax income attributable to common shareholders

$ 770

$ 714

$ 2,598$ 2,888

Ending adjusted segment common equity$ 19,172$ 20,525$ 19,172$ 20,525

Average adjusted segment common equity$ 19,297$ 20,880$ 19,128$ 20,369

Return on adjusted segment common equity

16.0

Total segment shareholder’s equity

%

13.7

%

13.6

%

14.2

$ 29,688$ 28,063$ 29,688$ 28,063

Less: Preferred equity

128

138

128

138

Total segment common equity

29,56027,92529,56027,925

Less: Accumulated other comprehensive income (AOCI)

14,613

10,02914,613

10,029Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

4,225

2,629

4,225

2,629

$ 19,172$ 20,525$ 19,172$ 20,525

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

Reconciliations of Premiums and Deposits

Three Months Ended
December 31,

%

2020

2021

Individual Retirement:
Premiums

$ 37

$ 68

Deposits

2,720

3,244

Other

1

(4

$ 2,758$ 3,308$5$7

Total premiums and deposits

Group Retirement:
Premiums
Deposits

2,194

1,855

Other

-

-

$ 2,199$ 1,862

Premiums

$ 491

$ 518

Deposits

430

426

Other

235

262

$ 1,156$ 1,206

Premiums$ 417$ 2,150

Deposits

864

77

Other

6

6

$ 1,287$ 2,233$ 950$ 2,743

Total premiums and depositsLife Insurance:

Total premiums and deposits

Institutional Markets:

Total premiums and deposits

Total Life and Retirement:
Premiums)

Deposits

6,208

5,602

Other

242

264

Total premiums and deposits

7,400$ 8,609

Retail Mutual Funds

(139

)

Total premiums and deposits excluding Retail Mutual Funds $ 7,261

View source version on businesswire.com: https://www.businesswire.com/news/home/20220216006013/en/
Quentin McMillan (Investors): quentin.mcmillan@aig.com
Claire Talcott (Media): claire.talcott@aig.com
Source: American International Group, Inc.