本稿は2017年5月3日、AIG米国本社が発表した英文プレスリリース（原文）の一部参考訳です。
原文と合わせてご参照ください。本稿と原文との間で解釈に相違が生じた際には、原文が優先します。
原文の発信日付で、AIGジャパンのホームページに掲載しています。

2017 年第1四半期の決算を公表
2017年5月3日（ニューヨーク発）：アメリカン・インターナショナル・グループ・インク（ニューヨーク証券取引所
銘柄：AIG）（「AIG」）は本日、2017年3月31日までの第1四半期の決算を公表しました。

AIG社長兼CEOのピーター・D・ハンコックは、以下のように述べました。「当社の2017年第1四半期決算は、当社の戦略を実行し、バランスシートを強化し、収益の質を向上させるために執った行動の成果を表しています。当社の中核事業（Core）であるコマーシャル・インシュアランスおよびコンシューマー・インシュアランス事業の業績が改善したことで、資本の株主還元を継続して実現させました。2016年1月以降、当社は250億ドルの株主還元を行うという目標に向けて、180億ドル超の株主還元を行っています。当社は今後も戦略的な取組みを続けるとともに、
世界の保険業界のリーダーとしての地位をさらに確固たるものにしていきます。」

2017年第1四半期の業績概要*
3月 31日までの3ヶ月間（単位：百万米ドル、1株当たりの額を除く）

2017

2016

純利益（損失）

$

1,185

$

(183)

希薄化後1株当たり純利益（損失）（a）

$

1.18

$

(0.16)

税引後営業利益

$

1,367

$

765

希薄化後1株当たり営業利益（a）

$

1.36

$

0.64

株主資本利益率（ROE）

6.3

%

(0.8)

%

調整後ROE

9.6

%

4.5

%

標準化後ROE（b）

8.1

%

8.3

%

10.2

%

6.8

%

AIG連結：

中核事業（Core）：
調整後帰属株主資本利益率 – Core

9.0 %
8.7 %
標準化後帰属株主資本利益率 – Core （b）
その他の包括利益累計額を除く普通株式１株当たりブック・バリュー$ 74.58$ 73.40*非GAAPならびに非GAAP財務指標のGAAP指標への調整についてはレギュレーションGに関する注釈およびそれに続く表をご参照ください。
（a）– 損失を計上した期間については、基本的平均発行済み普通株式数を用いて希薄化後1株当たり純利益（損失）を算出しています。
（b）– 連結標準化後株主資本利益率（ROE）およびCore標準化後ROEの低下は主として2016年下半期の米国の賠償責任保険事業の損害推定額の増加によるもので、これによりそれぞれ0.8ポイント、1.0ポイント低下しました。

別段の記載がない限り、比較はすべて、2016年第1四半期に対するものです。詳細については、AIG ウェブサイト
の投資家向けセクションに掲載されている2017年第1四半期追加財務情報をご参照ください。

1

決算概要
ROEの向上 –ROEが6.3%およびCore調整後ROEが10.2%に改善したのは、主として積極的な資本管理と費用効率化による成果です。オルタナティブ投資からの好調な利益、および異常災害損失が予想を下回ったことを含めて業績を標準化すると、Core標準化後ROEは8.7%となりました。Core標準化後ROEは前年同期に比べ30ベーシス・ポイント低下しましたが、主因は2016年下半期の米国の賠償責任保険における損害推定額が増加したためです。損失推定額が2016年第1四半期に反映されていた場合には、Core標準化後ROEは100ベーシス・ポイン
ト低下していました。なお、2016年第1四半期のCore標準化後ROEには、税務監査事項に係る有利な決定による50ベーシス・ポイントの寄与が含まれています。

目標を上回る費用削減の実現 – 営業関連費用およびその他費用の合計（GOE）は前年同期比5億6,000万ドル（18.6%）減少し、24億ドルとなりました。組織の簡素化と新しい技術の活用推進を行った結果、ユナイテッド・ギャ
ランティ・コーポレーションおよびAIGアドバイザー・グループの売却に関連するGOE減少を除くと、実質ドル・ベー
スで、営業ベース事業費の10%減少を実現しました。

資本および流動性に関する取組み – 2017年第1四半期に当社は36億ドルの普通株式5,600万株を買い戻しました。さらに、2017年5月3日までに、11億ドルの普通株式1,810万株を買い戻しました。2017年5月3日に当社取締役会は25億ドルのAIG普通株式の追加自社株買いを承認し、これによりAIGの取締役会により承認されている自己株式取得枠総額の残高は、同日現在約38億ドルとなりました。
2017年第1四半期に親会社AIG は、2016年末に締結された生命保険再保険契約を主因とする租税分与支払いの形で生命保険会社から送金された26億ドルを含め、生命保険子会社からの28億ドルの配当を受け取りました。

ポートフォリオ改善への取組みを継続 – 2017年第1四半期以降に、当社はAIG富士生命保険株式会社のFWDグ
ループへの株式譲渡を完了しました。加えて、当社はフェアファクス・ファイナンシャル・ホールディングス・リミテッドに売却することで合意していた国際事業12事業のうち4事業を売却しました。

中核事業（Core）

コマーシャル・インシュアランス概要 – 2017年第1四半期のコマーシャル・インシュアランスの業績は、オルタナ
ティブ投資からの好調な利益と費用減少の恩恵を受けました。正味収入保険料が減少していますが、この減少の大きな要因は、リスク選択および目標を定めた成長を重視するという当社の方針に基づき、再保険ならびに米国の賠償責任保険および財物保険分野における継続的な改善を行っているためです。

 税引前営業利益には、企業財物・スペシャリティ保険事業部門の前年以前事故年度の当年度発生保険金
発生額の減少（再保険および保険料調整後）3,500万ドルならびに企業賠償・経営保険事業部門の過年度
アドバース・デベロップメント（再保険および保険料調整後）8,100万ドルが含まれています。企業賠償・経営保険事業部門のアドバース・デベロップメントは英オグデンに関連した割引率調整1億200万ドルを主に反映したものですが、これはナショナル・インデムニティー・カンパニーとのアドバース・デベロップメント再保
険契約の繰延利益の部分的な四半期償却に起因する利益4,100万ドルによって一部相殺されました。



2017年第1四半期の損害率は71.9ポイントとなり、前年同期比で4.1ポイント上昇となりました。事故発生年
度ベースの調整済み損害率は2.0ポイント上昇の65.5ポイントとなりました。比較対象となっている2016年
第1四半期には、米国の賠償責任保険を中心とした2016 年下半期の損害推定額の増加分が含まれていません。損害推定額増加を考慮に入れると、事故発生年度ベースの調整済み損害率は2.2ポイント改善していたことになります。



2017年第1四半期の事業費率は30.3ポイントとなり、前年同期比で若干の上昇となりました。GOEの改善、再保険契約による再保険料収入およびアスコット・アンダーライティング・ホールディングスの売却に関連し2

た保険委託料の減少は、当社の戦略的ポートフォリオ再編の取組みに伴う保険料の減少により相殺されました。

コマーシャル・インシュアランスの正味収入保険料は事業売却を除き17%、実質ドル・ベースでは14%減少しました。この減少のうち財物保険における再保険の活用増加が4ポイントを占め、2017年第1四半期を通じた当社の戦略的ポートフォリオ再編の取組みの継続などに関連したものが残り10ポイント分、および欧州における重要な1月1日の保険更新期日に関連したものでした。

（単位：百万米ドル）

2017

コマーシャル・インシュアランス合計
正味収入保険料
税引前営業利益引受に関する比率：
損害率
費用率
コンバインド・レシオ

$
$

3,629
849

3月31日までの3ヶ月間
2016
増減
$
$

71.9
30.3
102.2

4,375
662

(17)
28

%

67.8
29.9
97.7

4.1
0.4
4.5

pts

2,509
569

(12)
1

%

69.0
27.8
96.8

7.0
1.6
8.6

pts

1,866
93

(24)
196

%

66.0
33.1
99.1

0.3
(1.7)
(1.4)

pts

企業賠償・経営保険
正味収入保険料
税引前営業利益引受に関する比率：
損害率
費用率
コンバインド・レシオ
企業財物・スペシャリティ保険$$

正味収入保険料
税引前営業利益引受に関する比率：
損害率
費用率
コンバインド・レシオ

$
$

2,216
574

$
$

76.0
29.4
105.4

1,413
275
66.3
31.4
97.7

3

$
$

コンシューマー・インシュアランス概要 – 2017年第1四半期のコンシューマー・インシュアランスの業績は、オル
タナティブ投資の利益拡大と費用管理ならびに個人および団体向け退職給付の保有契約および生命保険事業の安定した業績に支えられました。

•

税引前営業利益は49%増加しましたが、これはオルタナティブ投資の利益拡大およびコンシューマー・イン
シュアランス事業部門全体における費用削減によるものです。

•

個人向け退職給付では、オルタナティブ投資の利益拡大、獲得費用償却と給付金経費の減少および株式市場のパフォーマンス改善に関連する保険契約手数料利益の増加が2016年5月のAIGアドバイザー・グ•••

ループ売却の利益減少により部分的に相殺されました。
団体向け退職給付では、保険料が若干増加した一方、収入保険料および預かり資産が新規契約獲得を主因に10%増加しました。保険解約増加でネット・フローは減少しました。商業不動産担保付融資の返済減少はオルタナティブ投資の利益拡大および効果的な保障利率管理によって相殺されました。
生命保険における税引前利益の増加は、オルタナティブ投資の利益拡大、ユニバーサル生命保険の発展に起因する保険契約手数料利益拡大および国内GOEの減少を反映したものです。
個人向け保険は堅調に推移しました。オルタナティブ投資からの正味投資利益の増加および戦略的取組みを反映した事業費率の改善は、既経過保険料ベースの低下、事故発生年度ベースの調整済み損害率の上昇および前年以前事故年度に係る正味支払備金戻入の減少により部分的に相殺されました。

3月31日までの3ヶ月間
2017
2016
増減

（単位：百万米ドル）
コンシューマー・インシュアランス合計
収入保険料および手数料
正味投資利益経常収益
給付および費用
税引前営業利益
個人向け退職給付
収入保険料および手数料
正味投資利益経常収益
給付および費用
税引前営業利益
団体向け退職給付
収入保険料および手数料
正味投資利益経常収益
給付および費用
税引前営業利益

$

3,785
1,940
5,942
4,894
1,048

$

3,772
1,612
5,891
5,187
704

20
1
(6)
49

%

$

213
1,007
1,373
834
539

$

214
839
1,493
1,191
302

20
(8)
(30)
78

%

$

108

$

98

10 %

479
629
438
191

16
14
8
27

555
718
475
243

生命保険
収入保険料および手数料
正味投資利益経常収益
給付および費用
税引前営業利益
個人向け損害保険
正味収入保険料
税引前営業利益引受に関する比率:
損害率
費用率
コンバインド・レシオ

$

744
260
1,013
959
54

$

704
234
953
952
1

6 %
11
6
1
NM

$
$

2,668
212

$
$

2,809
210

(5) %
1

52.7
41.9
94.6

3.3 pts
(1.3)
2.0

56.0
40.6
96.6
4

レガシーおよびその他

レガシー・ポートフォリオ概要 – 2017年第1四半期にレガシー投資ポートフォリオについては、2017年第1四半
期に、総額約4億6,800万ドルに達する契約を外部事業者と数件実行しました。受け取った対価の大部分は関連保険会社に対する会社間融資および債券の返済に充当しました。

•

レガシー投資事業の税引前利益が増加しましたが、これは公正価値オプションの採用によって資産の評価が向上したためです。
###

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1919 年に創業し、現在では、損害保険、生命保険、リタイヤメント商品およびその他の金融サービスを幅広く提供
しています。AIG の商品・サービスを通じた多岐にわたるサポートは、法人および個人のお客様の資産を守り、リ
スクマネジメントおよび確かなリタイヤメント・セキュリティをお届けします。持株会社 AIG, Inc.は、ニューヨークおよび東京の各証券取引所に上場しています。
AIGの追加情報についてはwww.aig.com および www.aig.com/strategyupdate |You Tube : www.youtube.com/aig | Twitter : @AIGinsurance |LinkedIn : http://www.linkedin.com/company/aig |を参照ください。AIGに関する追加情報を記載しているこれら
参照先は便宜上提供されており、かかるウェブサイトに記載されている情報は、参照することにより本プレスリリー
スに組み込まれていません。
AIGとは、AIG, Inc.傘下の全世界の損害保険、生命保険、リタイヤメント・サービス事業ならびに一般的な保険事業のマーケティング名です。より詳細な情報については当社のホームページ（ www.aig.com ）を参照ください。全ての商品およびサービスはAIG, Inc.傘下の子会社または関連会社により引き受けまたは提供されています。これ
らの商品およびサービスは一部の国では利用できない可能性があり、実際の契約に準拠します。保険以外の商品・サービスは、独立した第三者によって提供されることがあります。一部の損害保険の補償については、サープ
ラス・ラインの保険会社によって提供される可能性があります。サープラス・ラインの保険会社は、一般的に米国州政府保証基金に加入しないため、当該基金による保証は行われません。

5

FOR IMMEDIATE RELEASE

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

Contacts:
Liz Werner (Investors): 212-770-7074; elizabeth.werner@aig.com
Fernando Melon (Investors): 212-770-4630; fernando.melon@aig.com
Jennifer Hendricks Sullivan (Media): 212-770-3141; jennifer.sullivan@aig.com
AIG REPORTS FIRST QUARTER 2017 RESULTSNEW YORK, May 3, 2017 - American International Group, Inc. (NYSE: AIG) today
announced results for the quarter ended March 31, 2017.
“Our first quarter results highlight the success of the actions we have taken to execute on our
strategy, strengthen our balance sheet, and improve earnings quality,” said Peter D. Hancock,
AIG President and Chief Executive Officer. “Operating results across our core Commercial
and Consumer businesses improved and we continued to return excess capital to shareholders.
Since January 1, 2016, we have returned over $18 billion of capital towards our $25 billion
target. We will continue to execute our strategy and further build on our position as a leading
global insurance company.”
FIRST QUARTER FINANCIAL SUMMARY*

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

2017

2016

Net income (loss)

$

1,185

$

(183)

Net income (loss) per diluted share (a)

$

1.18

$

(0.16)

After-tax operating income

$

1,367

$

765

After-tax operating income per diluted share (a)

$

1.36

$

0.64

Return on equity

6.3 %(0.8) %

Adjusted return on equity

9.6 %

4.5 %

Normalized return on equity (b)

8.1 %

8.3 %

10.2 %

6.8 %AIG Consolidated:

Core:
Adjusted return on attributed equity - Core
Normalized return on attributed equity - Core (b)Book value per common share, excluding accumulated other comprehensive income

8.7 %
$

74.58

9.0 %
$

73.40

*Refer to the Comments on Regulation G and the tables that follow for a discussion of non-GAAP financial measures and thereconciliations of the non-GAAP financial measures to GAAP measures.
(a) For periods reporting a loss, basic average common shares outstanding are used to calculate net income (loss) per diluted share.
(b) The declines in Consolidated Normalized ROE and Core Normalized ROE are largely due to the increase in second half 2016 U.S.
Casualty loss estimates, which contributed 0.8 pts and 1.0 pts to the declines respectively.

1

FOR IMMEDIATE RELEASEAll comparisons are against the first quarter of 2016, unless otherwise indicated. Refer to the AIGFirst Quarter 2017 Financial Supplement which is posted on AIG's website in the Investor
Information section for further information.
FINANCIAL HIGHLIGHTSROE Improvements – ROE of 6.3% and Core Adjusted ROE of 10.2% improved largely due toactive capital management and expense efficiencies. After normalizing our results, including
for strong alternative investment returns and lower than expected catastrophe losses, Core
Normalized ROE was 8.7%. The decline in Core Normalized ROE of 30 bps from a year ago islargely due to the increase in second half 2016 U.S. Casualty loss estimates. Had the loss
estimates been reflected in the first quarter of 2016, the Core Normalized ROE would havebeen 100 bps lower. The year ago Core Normalized ROE also included a 50 bps contribution
from certain favorable tax audit resolutions.
Expense Reduction Ahead of Target – General operating and other expenses (GOE) declined$560 million or 18.6% to $2.4 billion. GOE, operating basis, declined 10% on a constant dollar
basis excluding the GOE reductions related to the sales of United Guaranty Corporation and
AIG Advisor Group, driven by organizational simplification and better use of technology.
Execution of Capital and Liquidity Plan – In the first quarter, AIG repurchased 56.0 million
common shares for $3.6 billion. Through May 3, 2017, AIG has repurchased an additional 18.1
million common shares for $1.1 billion. On May 3, 2017, AIG’s Board of Directors authorized
an additional increase to its previous repurchase authorization of AIG Common Stock of $2.5
billion, resulting in an aggregate remaining authorization of approximately $3.8 billion on suchdate.
In the first quarter, AIG Parent received $2.8 billion of distributions from insurance
subsidiaries including $2.6 billion remitted by the Life Insurance Companies in the form of tax
sharing payments which were primarily the result of a life reinsurance agreement entered intoat the end of 2016.
Continued Progress on Sculpting the Portfolio – Since the first quarter AIG closed on the saleof AIG Fuji Life Insurance Company, Ltd. to FWD Group. In addition, AIG closed on four of
the twelve international operations it had agreed to sell to Fairfax Financial Holdings Limited.
CORE
Commercial Insurance Highlights – In the first quarter, Commercial Insurance results
benefited from strong alternative investment returns and expense reduction. Reinsurance andcontinued remediation in the U.S. Casualty and Property businesses accounted for a large
majority of the decline in net premiums written which is consistent with AIG’s focus on risk
selection and targeted growth.
• Pre-tax operating income included $35 million of favorable prior year reserve
development, net of reinsurance and premium adjustments, in Property and Special
Risks and $81 million of adverse prior year reserve development, net of reinsurance
and premium adjustments in Liability and Financial Lines. The Liability and Financial
2

FOR IMMEDIATE RELEASE

Lines adverse development primarily reflected a $102 million addition related to the
Ogden U.K. discount rate adjustment which was partially offset by $41 million of
benefit attributable to the partial quarterly amortization of the deferred gain from theadverse development reinsurance agreement with National Indemnity Company.
•

The loss ratio of 71.9 increased by 4.1 points in the first quarter 2017. The accident
year loss ratio, as adjusted, of 65.5 increased by 2.0 points. The first quarter of 2016
did not include the increase in second half 2016 loss estimates, which were primarily in
the U.S. Casualty business. Taking into account the increased loss estimates, theaccident year loss ratio, as adjusted, would have improved by 2.2 points.

•

The expense ratio was 30.3 in the first quarter, slightly higher than that in the prior year
quarter as improvements in GOE, ceding commissions received from reinsurers and a
decline in commission expenses associated with the sale of Ascot Underwriting
Holdings Ltd. were offset by the decline in premiums associated with our strategic
portfolio actions.

•

Commercial Insurance net premiums written decreased by 17% or 14% on a constantdollar basis excluding divestitures. The increased use of reinsurance in Property
represented 4 points of the decline, while the remaining 10 points was related tocontinued execution on our strategic portfolio actions throughout the first quarter of
2017, and the important January 1st renewal date in Europe.

Three Months Ended March 31,($ in millions)
Total Commercial Insurance
Net premiums written
Pre-tax operating income
Underwriting ratios:
Loss ratio
Expense ratio
Combined ratio
Liability and Financial Lines
Net premiums written
Pre-tax operating income
Underwriting ratios:
Loss ratio
Expense ratio
Combined ratio
Property and Special Risks
Net premiums written
Pre-tax operating income
Underwriting ratios:
Loss ratio

3

2017
$
$

3,629
849

2016
$
$

71.9
30.3
102.2

$
$

2,216
574

$
$

76.0
29.4
105.4

$
$

1,413
275
66.3

$
$

Change4,375
662(17) %
28

67.8
29.9
97.7

4.1 pts
0.4
4.5

2,509
569

(12) %
1

69.0
27.8
96.8

7.0 pts
1.6
8.6

1,866
93

(24) %
196

66.0

0.3 pts

FOR IMMEDIATE RELEASE

Expense ratio
Combined ratio

31.4
97.7

33.1
99.1

(1.7)
(1.4)

Consumer Insurance Highlights – In the first quarter, Consumer Insurance earnings were
supported by increased alternative investment income and expense control, combined withstable earnings from the inforce Individual and Group Retirement and Life Insurance
businesses.
• Pre-tax operating income increased 49%, driven by higher returns on alternative
investments and expense reductions across all Consumer Insurance businesses.
•

In Individual Retirement, higher returns on alternative investments, lower acquisition
cost amortization and benefit expense, and higher policy fee income related to better
equity market performance were partially offset by the decrease in income from thesale of AIG Advisor Group in May 2016.

•

In Group Retirement, premiums increased slightly, while premiums and deposits
increased 10% driven by group acquisitions. Higher surrenders resulted in negative net
flows. Lower prepayments on commercial mortgage loans were offset by higher
returns on alternative investments and effective crediting rate management.

•

In Life Insurance, higher pre-tax operating income reflected higher returns onalternative investments, higher policy fee income primarily from growth in universal
life and lower domestic GOE.

•

Personal Insurance delivered solid results. Growth in net investment income fromalternative investments and an improved expense ratio which reflected strategic
actions, were partially offset by a lower earned premium base, higher accident year loss
ratio, as adjusted, and lower net favorable prior year loss reserve development.

Three Months Ended March 31,

2017($ in millions)
Total Consumer Insurance
Premiums & Fees
Net Investment Income
Operating Revenue
Benefits & Expenses
Pre-tax operating income
Individual Retirement
Premiums & Fees
Net Investment Income
Operating Revenue
Benefits & Expenses
Pre-tax operating income
Group Retirement

4

2016

Change

$

3,785
1,940
5,942
4,894
1,048

$

3,772
1,612
5,891
5,187
704

- %
20
1
(6)
49

$

213 $
1,007
1,373
834
539

214
839
1,493
1,191
302

- %
20
(8)
(30)
78

FOR IMMEDIATE RELEASE

Premiums & Fees
Net Investment Income
Operating Revenue
Benefits & Expenses
Pre-tax operating income
Life Insurance
Premiums & Fees
Net Investment Income
Operating Revenue
Benefits & Expenses
Pre-tax operating income
Personal Insurance
Net premiums written
Pre-tax operating income
Underwriting ratios:
Loss ratio
Expense ratio
Combined ratio

$

108 $
555
718
475
243

98
479
629
438
191

10 %
16
14
8
27

$

744 $
260
1,013
959
54

704
234
953
952
1

6 %
11
6
1
NM

$
$

2,668 $
212 $

2,809
210

(5) %
1

56.0
40.6
96.6

52.7
41.9
94.6

3.3 pts(1.3)
2.0

LEGACY & OTHER
Legacy Portfolio Highlights - During the first quarter, the Legacy Investment portfolio
executed on several transactions with external parties for total consideration of approximately$468 million. The majority of the consideration received was used to pay down intercompany
loans and notes with affiliated insurance companies.
• Higher Legacy Investment pre-tax operating income was driven by higher appreciation
on assets for which the fair value option was elected.

CONFERENCE CALL
AIG will host a conference call tomorrow, Thursday, May 4, 2017, at 9:00 a.m. ET to review theseresults. The call is open to the public and can be accessed via a live listen-only webcast in theInvestor Relations 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 Investor Relations section at
www.aig.com.
The conference call (including the conference call presentation material), the earnings release andthe financial supplement may include, and officers and representatives of AIG may from time totime make, projections, goals, assumptions and statements that may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These
5

FOR IMMEDIATE RELEASE

projections, goals, assumptions and statements are not historical facts but instead represent only
AIG’s belief regarding future events, many of which, by their nature, are inherently uncertain andoutside 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 address, among other things, AIG’s: exposures to subprime
mortgages, monoline insurers, the residential and commercial real estate markets, state andmunicipal bond issuers, sovereign bond issuers, the energy sector and currency exchange rates;
exposure to European governments and European financial institutions; strategy for risk
management; generation of deployable capital; actual and anticipated sales of businesses or asset
divestitures or monetizations; restructuring of business operations, including anticipatedrestructuring charges and annual cost savings; strategies to increase return on equity and earnings
per share; strategies to grow net investment income, efficiently manage capital, grow book value
per common share, and reduce expenses; anticipated organizational and business changes;
strategies for customer retention, growth, product development, market position, financial results
and reserves; segments’ revenues and combined ratios; and Chief Executive Officer succession andmanagement retention plans. 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:changes in market conditions; negative impacts on customers, business partners and otherstakeholders; the occurrence of catastrophic events, both natural and man-made; significant legal
proceedings; the timing and applicable requirements of any new regulatory framework to which
AIG is subject as a nonbank systemically important financial institution and as a global
systemically important insurer; concentrations in AIG’s investment portfolios; actions by credit
rating agencies; judgments concerning casualty insurance underwriting and insurance liabilities;
AIG’s ability to successfully manage Legacy portfolios; AIG’s ability to successfully reduce costs
and expenses and make business and organizational changes without negatively impacting client
relationships or AIG’s competitive position; AIG’s ability to successfully dispose of, or monetize,
businesses or assets; judgments concerning the recognition of deferred tax assets; judgments
concerning estimated restructuring charges and estimated cost savings; and such other factors
discussed in Part I, Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations (MD&A) in AIG’s Quarterly Report on Form 10-Q for the quarterly period
ended March 31, 2017 (which will be filed with the SEC) Part II, Item 7. MD&A and Part I, Item
1A. Risk Factors in AIG’s Annual Report on Form 10-K for the year ended December 31, 2016.
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 madefrom time to time, whether as a result of new information, future events or otherwise.
##
COMMENT ON REGULATION G#

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 “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
6

FOR IMMEDIATE RELEASE

financial measures AIG presents may not be comparable to similarly-named measures reported byother companies. The reconciliations of such measures to the most comparable GAAP measures inaccordance with Regulation G are included within the relevant tables or in the First Quarter 2017
Financial Supplement available in the Investor Information 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) and Adjusted Book Value per Common
Share, Including Dividend Growth are used to show the amount of AIG’s net worth on a pershare basis. AIG believes these measures are useful to investors because they eliminate items thatcan 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. These measures also eliminate the asymmetrical impact resulting from changes in fairvalue of AIG’s available for sale securities 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 these book value per common share metrics. Book value percommon share, excluding AOCI, is derived by dividing Total AIG Shareholders’ equity, excluding
AOCI, by total common shares outstanding. Adjusted Book Value per Common Share is derived
by dividing Total AIG shareholders’ equity, excluding AOCI and DTA (Adjusted Shareholders’Equity), by total common shares outstanding. Adjusted Book Value per Common Share, including
dividend growth is derived by dividing Adjusted Shareholders’ Equity including growth inquarterly dividends above $0.125 per share to shareholders, by total common shares outstanding.
AIG Return on Equity – After-tax Operating Income Excluding AOCI and DTA (Adjusted
Return on Equity) is used to show the rate of return on shareholders’ equity. AIG believes thismeasure is useful to investors because it eliminates 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. This measure
also eliminates the asymmetrical impact resulting from changes in fair value of AIG’s available forsale securities 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 Equity. Adjusted Return on Equity is derived by dividing actual or annualized
after-tax operating income attributable to AIG by average Adjusted Shareholders’ Equity.
AIG Normalized Return on Equity further adjusts Adjusted Return on Equity for the effects ofcertain volatile or market related items. AIG believes this measure is useful to investors because it
presents the trends in AIG’s consolidated return on equity without the impact of certain items thatcan experience volatility in AIG’s short-term results. Normalized Return on Equity is derived by
excluding the following tax adjusted effects from Adjusted Return on Equity: the difference
between actual and expected (i) catastrophe losses, (ii) alternative investment returns, and (iii)7

FOR IMMEDIATE RELEASE

Direct Investment book (DIB) and Global Capital Markets (GCM) returns; fair value changes on
PICC investments; update of actuarial assumptions; Life insurance incurred but not reported(IBNR) death claim charge; and prior year loss reserve development.
Core Attributed Equity is an attribution of total AIG Adjusted Shareholders’ Equity to each of
AIG’s modules within Core based on AIG’s internal capital model, which incorporates therespective risk profiles. Attributed equity represents AIG’s best estimates based on current facts
and circumstances and will change over time.
Core Return on Equity – After-tax Operating Income (Adjusted Return on Attributed
Equity) is used to show the rate of return on attributed equity. Return on Attributed Equity isderived by dividing actual or annualized After-tax Operating Income by Average Attributed
Equity.
Core Normalized Return on Attributed Equity (Normalized Return on Attributed Equity)
further adjusts Adjusted Return on Attributed Equity for the effects of certain volatile or marketrelated items. AIG believes this measure is useful to investors because it presents the trends in
AIG’s Return on Attributed Equity without the impact of certain items that can experience
volatility in our short-term results. Normalized Return on Attributed Equity is derived by excluding
the following tax adjusted effects from Return on Attributed Equity: the difference between actualand expected (i) catastrophe losses, (ii) alternative investment returns, and (iii) DIB and GCM
returns; fair value changes on PICC investments; update of actuarial assumptions; Life insurance
IBNR death claim charge; and prior year loss reserve development.
After-tax Operating Income Attributable to Core is derived by subtracting attributed interest
expense and income tax expense from pre-tax operating income. Attributed debt and the related
interest expense is calculated based on AIG’s internal capital model. Tax expense or benefit iscalculated based on an internal attribution methodology that considers among other things thetaxing jurisdiction in which the operating segments conduct business, as well as the deductibility of
expenses in those jurisdictions.
Normalized After-tax Operating Income Attributable to Core further adjusts After-tax
Operating Income attributable to Core for the effects of certain volatile or market related items.
AIG believes this measure is useful to investors because it presents the trends in after tax operating
income without the impact of certain items that can experience volatility in AIG’s short-term
results. Normalized After-tax Operating Income attributable to Core is derived by excluding thefollowing tax adjusted effects from After-tax Operating Income: the difference between actual andexpected (i) catastrophe losses, (ii) alternative investment returns, and (iii) DIB and GCM returns;
fair value changes on PICC investments; update of actuarial assumptions; Life insurance IBNR
death claim charge; and prior year loss reserve development (PYD), net of reinsurance premium
adjustments.
Operating Revenues exclude Net realized capital 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). Operating revenues is a GAAP measure for our operating segments.
8

FOR IMMEDIATE RELEASE

General Operating Expenses, Operating Basis (Operating GOE), is derived by making thefollowing adjustments to general operating and other expenses: include (i) certain loss adjustment
expenses, reported as policyholder benefits and losses incurred and (ii) certain investment and otherexpenses reported as net investment income, and exclude (i) advisory fee expenses, (ii) nondeferrable insurance commissions, (iii) direct marketing and acquisition expenses, net of deferrals,(iv) non-operating litigation reserves and (v) other expense related to an asbestos retroactive
reinsurance agreement. AIG uses General operating expenses, operating basis, because AIG
believes it provides a more meaningful indication of AIG’s ordinary course of business operating
costs, regardless of within which financial statement line item these expenses are reported
externally within AIG’s segment results. The majority of these expenses are employee-related
costs. For example, Other acquisition expenses and losses and loss adjustment expenses primarily
represent employee-related costs in the underwriting and claims functions, respectively. Excluded
from this measure are non-operating expenses (such as restructuring costs and litigation reserves),
direct marketing expenses, insurance company assessments and non-deferrable commissions. AIG
also excludes the impact of foreign exchange and the expenses of AIG Advisor Group and UGC,
which have been divested, when measuring period-over-period fluctuations in General Operating
Expenses, Operating basis.
AIG uses the following operating performance measures because AIG believes they enhance theunderstanding of the underlying profitability of continuing operations and trends of AIG’s businesssegments. 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.
Pre-tax Operating Income (PTOI) is derived by excluding the following items from income fromcontinuing operations before income tax. This definition is consistent across AIG’s modules(including geography). 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. PTOI is a GAAP measure for ouroperating segments.
• changes in fair value of securities used tohedge guaranteed living benefits;• changes in benefit reserves and deferred
policy acquisition costs (DAC), value ofbusiness acquired (VOBA), and sales
inducement assets (SIA) related to net
realized capital gains and losses;• loss (gain) on extinguishment of debt;• net realized capital gains and losses;• non-qualifying derivative hedging
activities, excluding net realized capitalgains and losses;• income or loss from discontinued
operations;• net loss reserve discount benefit (charge);
9• pension expense related to a one-time lumpsum payment to former employees;• income and loss from divested businesses;• non-operating litigation reserves andsettlements;• reserve development related to nonoperating run-off insurance business;• restructuring and other costs related toinitiatives designed to reduce operating
expenses, improve efficiency and simplify
our organization; and• the portion of favorable or unfavorable
prior year reserve development for which
we have ceded the risk under retroactive
reinsurance agreements and related changes
in amortization of the deferred gain.

FOR IMMEDIATE RELEASE

After-tax Operating Income Attributable to AIG (ATOI) is derived by excluding the tax
effected PTOI adjustments described above and the following tax items from net income
attributable to AIG:••

deferred income tax valuation allowance releases and charges; anduncertain tax positions and other tax items related to legacy matters having no relevance to ourcurrent businesses or operating performance.

See page 12 for the reconciliation of Net income attributable to AIG to After-tax Operating Income
Attributable to AIG.
Ratios: AIG, along with most property and casualty insurance companies, uses the loss ratio, theexpense 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 Commercial Insurance excludes net loss reserve discount),
and the amount of other underwriting expenses that would be incurred. A combined ratio of lessthan 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 an effect on pricing and consequently on
profitability as reflected in underwriting income and associated ratios.
Accident year loss and combined ratios, as adjusted: both the accident year loss andcombined ratios, as adjusted, exclude catastrophe losses and related reinstatement premiums,
prior year development, net of premium adjustments, and the impact of reserve discounting.
Natural catastrophe losses are generally weather or seismic events having a net impact on AIG
in excess of $10 million each. Catastrophes also include certain man-made events, such as
terrorism and civil disorders that meet the $10 million threshold. AIG believes the as adjusted
ratios are meaningful measures of AIG’s underwriting results on an on-going basis as theyexclude catastrophes and the impact of reserve discounting which are outside of management’s
control. AIG also exclude prior year development to provide transparency related to current
accident year results.
Underwriting ratios are computed as follows:• Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned(NPE)• Acquisition ratio = Total acquisition expenses ÷ NPE• General operating expense ratio = General operating expenses ÷ NPE• Expense ratio = Acquisition ratio + General operating expense ratio• Combined ratio = Loss ratio + Expense ratio• Accident year loss ratio, as adjusted (AYLR) = [Loss and loss adjustment expenses
incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement premiums (RIPs) related tocatastrophes +/(-) RIPs related to prior year catastrophes + (Additional) returned
premium related to PYD]
10

FOR IMMEDIATE RELEASE• Accident year combined ratio = AYLR + Expense ratio• Catastrophe losses (CATs) and reinstatement premiums = [Loss and loss adjustment
expenses incurred – (CATs)] ÷ [NPE +/(-) RIPs related to catastrophes] – Loss ratio• Prior year development net of premium adjustments = [Loss and loss adjustment
expenses incurred – Prior year loss reserve development unfavorable (favorable)(PYD), net of reinsurance] ÷ [NPE +/(-) RIPs related to prior year catastrophes +(Additional) returned premium related to prior year development] – Loss ratio
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 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. Founded in 1919, today AIG member companies provide awide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80
countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets,manage risks and provide for retirement security. AIG’s core businesses include Commercial Insurance and Consumer Insurance, as well as
Other Operations. Commercial Insurance comprises two modules – Liability and Financial Lines, and Property and Special Risks. Consumer
Insurance comprises four modules – Individual Retirement, Group Retirement, Life Insurance and Personal Insurance. AIG common stock islisted on the New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com and www.aig.com/strategyupdate | YouTube: www.youtube.com/aig | Twitter:@AIGinsurance | LinkedIn: http://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 bysubsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage issubject to 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.

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

Reconciliations of Pre-tax and After-tax Operating Income (Loss)

Pre-tax income (loss)/net income (loss), including noncontrolling interests
Noncontrolling interest
Pre-tax income (loss)/net income (loss) attributable to AIG
Adjustments:
Uncertain tax positions and other tax adjustments
Deferred income tax valuation allowance releases
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)
Unfavorable (favorable) prior year development and related
amortization changes ceded under retroactive reinsurance agreements
Loss (gain) on extinguishment of debt
Net realized capital losses
Noncontrolling interest on net realized capital losses
Loss from discontinued operations
Loss from divested businesses
Non-operating litigation reserves and settlements
Net loss reserve discount benefit (charge)
Restructuring and other costs
Pre-tax operating income/After-tax operating income

12

$

$

Pre-tax
1,727
1,727

Three Months Ended March 31,
2017
2016
Tax Effect After-tax
Pre-tax
Tax Effect$
516 $ 1,206 $(214) $
(58)
(21)
516
1,185
(214)
(58)

After-tax
$
(185)
2
(183)

-

50
13

(50)
(13)

-

(205)
37

205
(37)

(11)

(4)

(7)

(133)

(47)

(86)

(53)

(19)

(34)

(40)

(14)

(26)

14
(1)
115
100
(6)
(25)
181
2,041 $

4
47
(6)
(2)
(9)
63
653 $

10
(1)
68
5
106
(4)
(16)
118
1,367

(7)
83
1,106
2
(31)
(9)
188
945

(2)
29
387
1
(11)
(1)
66
182

(5)
54
719
(18)
47
1
(20)
(8)
122
765

$

$

$

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

Summary of Key Financial Metrics
Three Months Ended March 31,% Inc.
2017
2016(Dec.)
Income (loss) per common share:
Basic
Income (loss) from continuing operations
Loss from discontinued operations$

Net income (loss) attributable to AIG$

DilutedIncome (loss) from continuing operations
Loss from discontinued operations$

Net income (loss) attributable to AIG
After-tax operating income attributable to AIG per diluted share (a)$$Weighted average shares outstanding:
Basic
Diluted (a)(b)

1.18
1.18
1.36

$

$

$
$

$

Total AIG shareholders' equity, excluding AOCIMarch 31, 2017
74,0693,781
70,288Deferred tax assets$

14,58555,703

Total adjusted AIG shareholders' equity
Add: Cumulative quarterly common stock dividends above $0.125 per share

1,405
57,108$

Total adjusted AIG shareholders' equity, including dividend growth

$
$
$
$

NM %
NM
NM

(0.12)(0.04)(0.16)
0.64

NM
NM
NM
112.5 %

(0.8) %
4.5 %$December 31, 2015
89,6582,537
87,121

14,77058,300$March 31, 2017
December 31, 2016
78.59
$
76.66
74.58
$
73.41
59.10
$
58.57
60.59
$
59.79
942.5

December 31, 2016
76,3003,230
73,070(0.12)(0.04)(0.16)

1,156.5
1,156.5

6.3 %
9.6 %

As of period end:
Total AIG shareholders' equity
Accumulated other comprehensive income

Total common shares outstanding

$

980.8
1,005.3

Return on equity (c)Adjusted return on equity (d)As of period end:
Book value per common share (e)Book value per common share excluding AOCI (f)Adjusted book value per common share (g)Adjusted book value per common share, including dividend growth (h)

1.21
1.21

995.3

1,216
59,516% Inc. (Dec.)
2.5 %
1.6
0.9
1.3 %

16,751
70,370378
70,748$December 31, 2015 % Inc. (Dec.)
$
75.10
4.6 %
$
72.97
2.2
$
58.94
0.3
$
59.26
2.2 %
1,193.9

Financial highlights - notes(a) For the quarter ended March 31, 2016, because we reported a net loss, all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted
shares and diluted per share amounts. We reported an after-tax operating income, therefore, we reported earnings per share on diluted basis. For the three months ended March 31,
2016, the weighted average outstanding shares - diluted includes 29,585,064 dilutive shares.
(b) Diluted shares in the diluted EPS calculation represent basic shares for the three-months ended March 31, 2016 due to the net loss in that period.
(c) Computed as Annualized net income (loss) attributable to AIG divided by average AIG shareholders' equity. Equity includes AOCI and DTA.
(d) Computed as Annualized After-tax Operating Income attributable to AIG divided by Adjusted Shareholders' Equity.
(e) Represents total AIG shareholders' equity divided by Total common shares outstanding.
(f) Represents total AIG shareholders' equity, excluding AOCI, divided by Total common shares outstanding.
(g) Represents Adjusted Shareholders' Equity, divided by Total common shares outstanding.
(h) Represents Adjusted Shareholders' Equity, and including growth in quarterly dividends above $0.125 per share to shareholders, divided by Total common shares outstanding.

13

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per share amounts)
Reconciliations of General Operating Expenses, Operating basis to General Operating and Other Expenses, GAAP basis
Three Months Ended
March 31,
% Inc.
20172016 (Dec.)
General operating and other expenses, GAAP basis
Restructuring and other costs
Other expense related to retroactive reinsurance agreement
Non-operating litigation reserves
Total general operating and other expenses included in pre-tax operating income
Loss adjustment expenses, reported as policyholder benefits and losses incurred
Advisory fee expenses
Non-deferrable insurance commissions and other
Direct marketing and acquisition expenses, net of deferrals, and other
Investment expenses reported as net investment income and otherTotal general operating expenses, operating basis$$

2,443 $
(181)
(4)
2,258
304
(77)
(132)
(112)
8
2,249 $

3,003
(188)
7
(3)
2,819
341
(317)
(122)
(144)
15
2,592

(18.6) %3.7
NM(33.3)(19.9)(10.9)
75.7
(8.2)
22.2
(46.7)(13.2) %Reconciliations of General Operating Expenses, Operating basis, Excluding Foreign Exchange and General Operating
Expenses of AIG Advisor Group and UGC to General Operating and Other Expenses, GAAP basis
Three Months Ended
March 31,
% Inc.
20172016 (Dec.)
General operating and other expenses, GAAP basis
Restructuring and other costs
Other expense related to retroactive reinsurance agreement
Non-operating litigation reserves
Total general operating and other expenses included in pre-tax operating income
Loss adjustment expenses, reported as policyholder benefits and losses incurred
Advisory fee expenses
Non-deferrable insurance commissions and other
Direct marketing and acquisition expenses, net of deferrals, and other
Investment expenses reported as net investment income and otherTotal general operating expenses, operating basis
Less: FX impact
Less: GOE of Advisor Group
Less: GOE of UGC
Total general operating expenses, Operating basis, Ex. FX & GOE of AIG Advisor Group and
UGC

14

$

2,443 $
(181)
(4)
2,258
304
(77)
(132)
(112)
8
2,249

3,003
(188)
7
(3)
2,819
341
(317)
(122)
(144)
15
2,592
(12)
45
50

(18.6) %3.7
NM(33.3)(19.9)(10.9)
75.7
(8.2)
22.2
(46.7)(13.2)
NM
NM
NM

$

2,249

2,509

(10.4) %$American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation($ in millions, except per share amounts)
Reconciliations of Normalized and Adjusted Return on Equity
Three Months Ended
March 31, 2017
Tax
Pre-tax
EffectAfter-tax

Adjusted Return on equity (a)Adjustments to arrive at Normalized Return on Equity:
Catastrophe losses above (below) expectations(Better) worse than expected alternative returns(Better) worse than expected DIB & GCM returns
Fair value changes on PICC investments
Life Insurance - IBNR death claims
Unfavorable (favorable) prior year loss reserve development
Normalized Return on Equity

$

2,041

$

(111)
(183)
(45)
(22)
32
1,712

ROE

$

1,185

6.3 %

$

653 $

1,367

9.6 %

$

(39)
(64)
(16)
(8)
11
537 $

(72)
(119)
(29)
(14)
21
1,154

(0.5)
(0.8)
(0.2)
(0.1)
0.1
8.1 %

Return on Equity

Average AIG Shareholders' equity
Less: Average AOCI
Less: Average DTA
Average adjusted shareholders' equity

Three Months Ended
March 31, 2016
Tax
Pre-tax
Effect After-tax

ROE

$

(183)

(0.8) %

$

945 $

182 $

765

4.5 %

$

(137)
714
395
103
(25)
(60)
1,935 $

(48)
250
138
36
(9)
(21)
528 $

(89)
464
257
67
(16)
(39)
1,409

(0.5)
2.7
1.5
0.4
(0.1)
(0.2)
8.3 %

$ 75,185
3,506
14,678$ 57,001$ 89,088
4,031
16,788$ 68,269(a) After-tax operating income also excludes Net income (loss) attributable to non-controlling interest of $21 million and $(2) million for the three months ended March 31, 2017and 2016, respectively.

Reconciliations of Core Normalized and Adjusted Return on Equity
Three Months Ended
March 31,2017
2016
Pre-tax operating income
Interest expense (benefit) on attributed financial debt
Operating income before taxes
Income tax expense (benefit)
After-tax operating income
Adjustments to arrive at Normalized Return on Equity:
Catastrophe losses above (below) expectations(Better) worse than expected alternative returns(Better) worse than expected DIB & GCM returns
Fair value changes on PICC investments
Unfavorable (favorable) prior year loss reserve development
Normalized after-tax operating income
Ending attributed equity
Average attributed equity
Adjusted return on attributed equity
Normalized return on attributed equity

15

$

1,699
(43)
1,742
556
1,186

$
$
$

$

(70)
(123)
(1)
(14)
31
1,009
45,22646,438
10.2
8.7

$
$
$
%
%

1,147
(23)
1,170
279
891
(87)
392
2
18
(41)
1,175
51,141
52,3306.8 %9.0 %American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)
Reconciliations of Accident Year Loss Ratio, as Adjusted and Combined Ratio, as Adjusted
Three Months Ended
March 31,2017
2016
Commercial Insurance - Liability and Financial Lines
Loss ratio
Catastrophe losses and reinstatement premiums
Prior year development net of premium adjustments
Accident year loss ratio, as adjusted

76.0
(3.5)
72.5

69.0
(0.1)
68.9

Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development net of premium adjustments
Accident year combined ratio, as adjusted

105.4
(3.5)
101.9

96.8
(0.1)
96.7

Commercial Insurance - Property and Special Risks
Loss ratio
Catastrophe losses and reinstatement premiums
Prior year development net of premium adjustments
Accident year loss ratio, as adjusted

66.3(12.6)
2.2
55.9

66.0
(11.6)
1.0
55.4

Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development net of premium adjustments
Accident year combined ratio, as adjusted

97.7(12.6)
2.2
87.3

99.1
(11.6)
1.0
88.5

Total Commercial Insurance
Loss ratio
Catastrophe losses and reinstatement premiums
Prior year development net of premium adjustments
Accident year loss ratio, as adjusted

71.9

67.8

(5.4)
(1.0)
65.5

(4.6)
0.3
63.5

Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development net of premium adjustments
Accident year combined ratio, as adjusted

102.2

97.7

(5.4)
(1.0)
95.8

(4.6)
0.3
93.4

Consumer Insurance - Personal Insurance
Loss ratio
Catastrophe losses and reinstatement premiums
Prior year development net of premium adjustments
Accident year loss ratio, as adjusted

56.0
(1.0)
55.0

52.7
(1.1)
1.8
53.4

Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development net of premium adjustments
Accident year combined ratio, as adjusted

96.6
(1.0)
95.6

94.6
(1.1)
1.8
95.3

Reconciliations of Premiums and Deposits
Three Months Ended
March 31,2017
2016
Consumer Insurance - Group Retirement:
Premiums
Deposits
Other
Total premiums and deposits

16

$

$

9
2,031
2,040

$

$

7
1,849
1,856