AIG Reports Fourth Quarter and Full Year 2022 Results
February 15, 2023
General Insurance delivered the strongest underwriting profitability AIG has ever achieved as full year 2022
underwriting income nearly doubled to $2.0 billion from the prior year, led by Commercial Insurance that had a
combined ratio of 89.6% and an adjusted accident year combined ratio* of 84.5% for full year 2022
General Insurance fourth quarter combined ratio improved 2.5 points from the prior year quarter to 89.9%; fullyear combined ratio improved 3.9 points to 91.9%
General Insurance fourth quarter adjusted accident year combined ratio* (AYCR) of 88.4% improved 1.4 points
from the prior year quarter, marking the 18th consecutive quarter of improvement; full year AYCR improved 2.3
points to 88.7%
Life and Retirement delivered a solid quarter with premiums of $2.1 billion and premiums and deposits* of $8.8
billion benefiting from strong Fixed Annuity and Fixed Index Annuity sales along with continued improvement inbase portfolio investment income
Net income per diluted common share was $0.35 and adjusted after-tax income* (AATI) per diluted common share
was $1.36 compared to $1.58 in the prior year quarter, driven by lower alternative investment income
AIG repurchased $779 million of common stock and redeemed $1.8 billion of senior unsecured notes in the fourth
quarter; for the full year, AIG returned over $6.1 billion to shareholders through $5.1 billion of common stock
repurchases and $1.0 billion of dividends; outstanding common shares at year end 2022 were 10% lower thanprior year
FOURTH QUARTER NOTEWORTHY ITEMSGeneral Insurance adjusted pre-tax income (APTI) of $1.2 billion decreased by $297 million from the prior year quarter asa result of a $489 million decrease of alternative investment income, partially offset by better underwriting results with 2.5
points of combined ratio improvement, benefiting from continued underwriting discipline and more favorable prior year
reserve development (PYD).
Life and Retirement APTI of $781 million reflects lower net investment income (NII) due to lower alternative investment
returns and call and tender income, partially offset by higher base portfolio income compared to the prior year quarter.
Net income attributable to AIG common shareholders was $264 million, or $0.35 per diluted common share for the fourth
quarter, compared to $3.7 billion or $4.38 per diluted common share in the prior year quarter.
AATI attributable to AIG common shareholders was $1.0 billion, or $1.36 per diluted common share, compared to $1.3
billion, or $1.58 per diluted common share, in the prior year quarter, primarily due to lower alternative investment income.
Return on common equity (ROCE) and Adjusted ROCE* were 2.7% and 7.5%, respectively, on an annualized basis for the
fourth quarter of 2022.
As of December 31, 2022, book value per common share was $53.83, compared to $79.97 at prior year end, driven by areduction in accumulated other comprehensive income (AOCI) as a result of higher interest rates. Adjusted book value percommon share* was $73.87, an increase of 7% from December 31, 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. 15, 2023-- American International Group, Inc. (NYSE: AIG) today reported financial results for the fourth
quarter and full year ended December 31, 2022.
AIG Chairman & Chief Executive Officer Peter Zaffino said: “2022 was an extraordinary year of progress for AIG. We continued to improve theprofitability of our General Insurance business, closing the year with the strongest underwriting results the business has ever achieved and with thesecond consecutive year of underwriting profitability improving by $1 billion. In addition, we made considerable progress on the separation of our Lifeand Retirement business and completed the initial public offering (IPO) of Corebridge Financial in September 2022. We reached significant milestones
on AIG 200 that modernized our technology infrastructure and operational capabilities, while executing on our target run-rate savings of $1 billion six
months ahead of schedule. We revamped AIG’s investment management strategy through strategic partnerships with Blackstone and BlackRock andhave transferred approximately $50 billion and $150 billion of assets, respectively, to these partners.
“Improvement in General Insurance continued through portfolio optimization, prudent risk selection and limit reduction of over $1.2 trillion since 2018.
The full-year 2022 combined ratio of 91.9% represents a 390-basis point year-over-year improvement. The accident year combined ratio, x-CAT of
88.7% improved 230 basis points from prior year, marking the fulfillment of our full-year sub-90 goal and was sub-90 in every quarter of 2022. Ourstrong momentum continued through the complex January 1 reinsurance renewal season, where the quality of our portfolio enabled us to secure
treaties on favorable terms in a very challenging market.

“Life and Retirement delivered a solid year with strong sales, particularly in Individual Retirement where Fixed Annuity and Fixed Index Annuity sales
continued their robust growth trends. The fixed income portfolio experienced meaningful lift in portfolio yield and widening spreads benefiting from thehigher interest rate environment. The capital strength and free cash flow profile of the business remain healthy.
“2022 was also a significant year in terms of capital management. We returned over $6.1 billion to shareholders through $5.1 billion of AIG common
stock repurchases and $1.0 billion of dividends and Corebridge paid two dividends totaling approximately $300 million in the fourth quarter of 2022
following its IPO in September. We established Corebridge’s capital structure and reduced AIG debt, setting a strong foundation for the future.
“In 2022 our colleagues across the globe aligned behind common goals and maintained a steadfast commitment to executing with the highest quality,
and I am incredibly proud of the meaningful progress we made. As we look ahead to 2023, the world faces many uncertainties. AIG is better positioned
than ever as a risk expert to continue executing on our strategy to deliver excellence as a top-performing company. I am confident we will continue tolead the market and create long-term value for our clients, distribution partners, colleagues, shareholders, and other stakeholders.”
For full year 2022, pre-tax income from continuing operations was $14.3 billion, up from $12.1 billion in the prior year. Full year 2022 net income
attributable to AIG common shareholders was $10.2 billion, or $13.01 per diluted common share, compared to net income of $9.4 billion, or $10.82 perdiluted common share, in the prior year. The increase was largely driven by net realized gains on Fortitude Re funds withheld embedded derivative,
strong General Insurance underwriting results, which almost doubled year-over-year, and lower interest expense benefiting from liability management
actions, partially offset by lower alternative investment income and call and tender income. The prior year results also included a $3.0 billion gain fromthe sale of a real estate portfolio. These pre-tax increases were partially offset by higher income tax expense as a result of higher income fromoperations as well as an increase in income attributable to the noncontrolling interest associated with Blackstone’s 9.9% ownership interest in
Corebridge and the IPO of Corebridge in September 2022.
AATI was $3.6 billion, or $4.55 per diluted common share, for the full year of 2022 compared to $4.4 billion, or $5.12 per diluted common share, in theprior year. The decrease in AATI was primarily due to lower alternative investment income and call and tender income, partially offset by an increase in
General Insurance underwriting income, yield improvement in the fixed maturity and loan portfolios and savings on interest expense.
For the fourth quarter of 2022, pre-tax income from continuing operations was $279 million, down from $5.0 billion in the prior year quarter. Fourth
quarter 2022 net income attributable to AIG common shareholders was $264 million, or $0.35 per diluted common share, compared to $3.7 billion, or$4.38 per diluted common share, in the prior year quarter. Prior year result included a $3.0 billion gain from the sale of a real estate portfolio. The
pre-tax income decline was otherwise primarily due to a decrease in net realized gains on derivative activities.
AATI was $1.0 billion, or $1.36 per diluted common share, for the fourth quarter of 2022 compared to $1.3 billion, or $1.58 per diluted common share,in the prior year quarter. The decrease in AATI was primarily due to lower alternative investment income and lower call and tender income, partially
offset by improvement in General Insurance underwriting results and yield improvement in the fixed maturity and loan portfolios.
Total consolidated net investment income for the fourth quarter of 2022 was $3.3 billion, down 9% from $3.6 billion in the prior year quarter, primarily
due to lower alternative investment income and reductions in call and tender income. Interest and dividends income improved $305 million from theprior year quarter with yield across the fixed maturity and loan portfolios up 29 basis points sequentially. Total net investment income on an APTI
basis* was $3.0 billion, a decrease of $331 million compared to the prior year quarter.
Book value per common share was $53.83 as of December 31, 2022, an increase of 4% from September 30, 2022 and a decrease of 33% from
December 31, 2021, driven by a reduction in AOCI as a result of higher interest rates. Adjusted book value per common share* was $73.87, anincrease of 1% from September 30, 2022 and 7% from December 31, 2021, reflecting growth in retained earnings from net income in excess ofdividends and share repurchases. Adjusted tangible book value per common share* was $67.43, an increase of 1% from September 30, 2022 and 7%
from December 31, 2021.
For the fourth quarter of 2022, AIG repurchased $779 million of common stock or approximately 13 million shares, paid $243 million of common andpreferred dividends, and redeemed $1.8 billion of aggregate principal amount of debt, ending the year with AIG Parent liquidity of $3.7 billion as ofDecember 31, 2022. Corebridge liquidity is no longer reflected in AIG Parent's liquidity following the IPO. AIG’s ratio of total debt and preferred stock tototal capital at December 31, 2022 was 34.1%, down from 36.5% at September 30, 2022, due to the redemption of $1.8 billion of debt in the fourth
quarter and AOCI mark-to-market adjustments for certain investment portfolios.
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, 2023 to stockholders of record at the close of business on March 17, 2023.
The AIG Board of Directors also declared a quarterly cash dividend of $365.625 per share on AIG Series A 5.85% Non-Cumulative Perpetual
Preferred Stock, with a liquidation preference of $25,000 per share, which is represented by depositary shares (NYSE: AIG PRA), each representing a
1/1,000th interest in a share of preferred stock. Holders of depositary shares will receive $0.365625 per depositary share. The dividend is payable on
March 15, 2023 to holders of record at the close of business on February 28, 2023.
FINANCIAL SUMMARY($ in millions, except per common share amounts)

Three Months Ended
December 31, 2022

Twelve Months Ended
December 31, 2022

2021

2022

2021

2022

Net income attributable to AIG common shareholders$ 3,739$264$ 9,359$ 10,247

Net income per diluted share attributable to AIG common shareholders$ 4.38$0.35$ 10.82$ 13.01

Adjusted pre-tax income (loss)$ 1,830$

1,542$ 5,920$ 5,140

General Insurance

1,509

1,212

4,359

4,430

Life and Retirement

969

781

3,911

2,657

Other Operations

(648)

(451)

(2,350)(1,947)

Net investment income$ 3,565

Net investment income, APTI basis

$

3,291

Adjusted after-tax income attributable to AIG common shareholders

3,258$ 14,612 $ 11,767

2,960

12,94010,997$ 1,339$

1,024$ 4,430$ 3,586

Adjusted after-tax income per diluted share attributable to AIG common shareholders $ 1.58

$

1.36

$ 5.12$ 4.55

754.9

864.9

787.9

Weighted average common shares outstanding - diluted (in millions)

872.0

Return on common equity

23.0

% 2.7

% 14.5% 21.0%Adjusted return on common equity

9.9

% 7.5

% 8.6

% 6.5

%

Book value per common share$ 79.97$53.83$ 79.97$ 53.83

Adjusted book value per common share$ 68.83$

73.87$ 68.83$ 73.87

Common shares outstanding (in millions)

818.7

734.1

818.7

734.1

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

2021

2022

ChangeGross premiums written$ 8,013$ 7,594(5)%

Net premiums written$ 5,961$ 5,610(6.0)%

North America

2,642

2,674

1

North America Commercial Lines

2,208

2,272

3

North America Personal Insurance

434

402

(7)

International

3,319

2,936

(12)

International Commercial Lines

1,915

1,763

(8)

International Personal Insurance

1,404

1,173

(16)

Underwriting income (loss)

$ 499

$ 635

27

North America

152

425

180

North America Commercial Lines

135

435

222

North America Personal Insurance

17

(10)

NM

International

347

210

(39)

International Commercial Lines

239

196

(18)

International Personal Insurance

108

14

(87)

Net investment income, APTI basis$ 1,010

$ 577

(43)

%

Adjusted pre-tax income$ 1,509$ 1,212

(20)

%

(5.3)

pts

pts

Return on adjusted segment common equity

16.1

%

10.8

%

%

Underwriting ratios:
North America Combined Ratio (CR)

95.0

86.6

(8.4)

North America Commercial Lines CR

94.8

84.4

(10.4)

North America Personal Insurance CR

96.0

102.5

6.5

International CR

90.1

93.2

3.1

International Commercial Lines CR

88.1

89.4

1.3

International Personal Insurance CR

93.0

98.9

5.9

General Insurance (GI) CR

92.4

89.9

(2.5)

GI Loss ratio

61.8

58.5

(3.3)

(2.9)

(3.8)

(0.9)

Prior year development, net of reinsurance and prior year premiums 0.3

2.3

2.0

GI Accident year loss ratio, as adjusted

59.2

57.0

(2.2)

GI Expense ratio

30.6

31.4

0.8

GI Accident year combined ratio, as adjusted

89.8

88.4

(1.4)

North America AYCR

89.7

88.2

(1.5)

North America Commercial Lines AYCR

88.9

85.9

(3.0)

North America Personal Insurance AYCR

94.9

105.3

10.4

International AYCR

89.9

88.6

(1.3)

International Commercial Lines AYCR

86.7

81.6

(5.1)

International Personal Insurance AYCR

94.1

98.9

4.8

pts

Less: impact on loss ratio
Catastrophe losses and reinstatement premiums

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

General Insurance

Net premiums written (NPW) in the fourth quarter of 2022 decreased 6% from the prior year quarter and increased 1% on
a constant dollar basis to $5.6 billion, driven by solid North America Commercial Lines growth of 3% attributed to strong
new business and retention and International Commercial Lines growth of 2% on a constant dollar basis. Commercial NPW
benefited from strong growth in Lexington, Specialty and Casualty, offset in part by a decline in Financial Lines due todecreased capital markets activities. Personal Insurance NPW decreased 14% or 2% on a constant dollar basis, primarily
due to a decrease in Warranty and underwriting actions taken in Private Client Group as the repositioning of this business
continues, partially offset by growth in International Accident & Health and Travel.
Fourth quarter 2022 APTI decreased by $297 million to $1.2 billion from the prior year quarter due to lower alternative
investment income, partially offset by improvement in underwriting income. Underwriting income increased by $136 million
to $635 million in the fourth quarter of 2022, which included $235 million of catastrophe losses (CATs), before
reinstatement premiums, notably from Winter Storm Elliott, compared to $189 million of CATs in the prior year quarter.
Fourth quarter 2022 also included favorable PYD, net of reinsurance, of $151 million compared to favorable PYD of $44
million in the prior year quarter.
General Insurance delivered another quarter of strong underwriting results with a combined ratio of 89.9%, a 2.5-point
improvement from 92.4% in the prior year quarter, driven by an improvement of 3.3 points in the loss ratio that included
higher favorable PYD. The General Insurance AYCR was 88.4%, an improvement of 1.4 points from the prior year quarterwith a 2.2-point improvement in the accident year loss ratio, as adjusted* to 57.0%, offset by a 0.8 point increase in the
expense ratio to 31.4%. The improvement in accident year loss ratio, as adjusted, reflected continued earn-in of rate inexcess of loss cost trends, execution on portfolio management strategy and improvement in Commercial Lines businessmix.
Commercial Lines underwriting results continued to show strong improvement as a result of continued focus onunderwriting excellence and expense management. The combined ratio was 84.4% for North America Commercial Lines

and 89.4% for International Commercial Lines. The AYCR for North America Commercial Lines improved 3.0 points to
85.9%, and for International Commercial Lines improved 5.1 points to 81.6% compared to the prior year quarter.
Personal Insurance underwriting results deteriorated, reflecting underwriting actions taken to shift business mix in order toreduce exposure and lower premiums in the quarter. The North America Personal Insurance combined ratio was 102.5%,
and AYCR of 105.3% deteriorated 10.4 points compared to the prior year quarter, driven by a higher acquisition ratio due
to a change in business mix and lower ceding commission. The International Personal Insurance combined ratio was
98.9%, and AYCR of 98.9% deteriorated 4.8 points from the prior year quarter, primarily driven by higher frequency oflosses related to restrictions pertaining to COVID-19 deemed hospitalization.
LIFE AND RETIREMENT
Three Months Ended
December 31,($ in millions, except as indicated)

2021

2022

$ 969

$ 781

(19)

Individual Retirement

498

434

(13)

Group Retirement

314

177

(44)

Life Insurance

(8)

106

NM

Institutional Markets

165

64

(61)

Premiums and fees

$ 3,524$ 2,879(18)

Individual Retirement

312

261

(16)

Group Retirement

140

107

(24)

Life Insurance

875

1,087

24

Institutional Markets

2,197

1,424

(35)

Premiums and deposits$ 8,609$ 8,800

2

Individual Retirement

3,308

3,827

16

Group Retirement

1,862

2,243

20

Life Insurance

1,206

1,179

(2)

Institutional Markets

2,233

1,551

(31)

$ (1,106)$ (744)33

Adjusted pre-tax income (loss)

Net flows

Change%%%%Individual Retirement

(34)

212

NM

Group Retirement(1,072)(956)

11$ 2,357$ 2,225

(6)

%

10.1

% (3.6)

pts

Net investment income, APTI basis

Return on adjusted segment common equity 13.7%

Life and Retirement

Life and Retirement reported APTI of $781 million for the fourth quarter of 2022, down 19% from $969 million in the prioryear quarter. The decline was primarily driven by lower NII as well as lower fee income and higher deferred policy
acquisition costs (DAC) amortization in Individual and Group Retirement due to challenging capital market conditions,partially offset by improved mortality experience. Base portfolio yield improved by approximately 34 basis points
sequentially or approximately 54 basis points year-over-year as a result of higher new money rates.
Life and Retirement delivered a solid quarter with premiums of $2.1 billion and premiums and deposits* increased 2% fromthe prior year quarter to $8.8 billion, benefiting from favorable sales activity in Individual and Group Retirement segments
driven by strong Fixed Annuity and Fixed Index Annuity sales, as well as higher Group Retirement plan acquisitions.
Excluding transactional businesses such as pension risk transfer, guaranteed investment contracts and Group Retirement
plan acquisitions, premiums and deposits* were up 14% year-over-year.
COVID mortality in Life Insurance is in line with the previously disclosed estimates of exposure sensitivity of $65 million to$75 million per 100,000 population of U.S. deaths.
Life and Retirement return on adjusted segment common equity* for the fourth quarter was 10.1% on an annualized basis.
OTHER OPERATIONS
Three Months Ended
December 31,($ in millions)

2021

2022

$ (577)$ (494)

14

399

38

(90)

Adjusted pre-tax loss before consolidation and eliminations (178)

(456)

(156)

Consolidation and eliminations

(470)

5

NM

$ (648)$ (451)30

Corporate and Other
Asset Management Group

Adjusted pre-tax loss

Change%%Other Operations

Other Operations adjusted pre-tax loss of $451 million improved by $197 million or 30% from the prior year quarter as aresult of improved results in Corporate and Other as well as reduced elimination activities.
Before consolidation and eliminations, the adjusted pre-tax loss increased by $278 million, reflecting lower investment
income driven by lower alternative investment returns, an increase in corporate general operating expense for costs related
to setting up Corebridge as a standalone public company, and higher vendor fees related to cloud migration.
The movements in the Asset Management Group as well as consolidation and eliminations were due to lower investment
gains compared to the prior year quarter. Results in the fourth quarter of 2021 included a large gain on sale frominvestment funds, which was allocated to the operating companies and eliminated in Other Operations.
LIFE AND RETIREMENT SEPARATIONOn September 19, 2022, AIG closed the IPO of 80 million shares of Corebridge common stock at a public offering price of $21.00 per share,representing 12.4 percent of Corebridge's common stock. Corebridge is the holding company for AIG’s Life and Retirement business. The aggregate
gross proceeds of the offering to AIG, before deducting underwriting discounts and commissions and other expenses payable by AIG, wereapproximately $1.7 billion.
In November 2021, AIG and Blackstone Inc. completed the acquisition by Blackstone of a 9.9 percent equity stake in Corebridge. Blackstone isrequired to hold its ownership interest in Corebridge following the completion of the separation of the Life and Retirement business, subject to
exceptions permitting Blackstone to sell 25%, 67% and 75% of its shares after the first, second and third anniversaries, respectively, of Corebridge
IPO (which will be September 19, 2023, 2024 and 2025, respectively), with the transfer restrictions terminating in full on the fifth anniversary of the IPO(September 19, 2027).
Following the IPO, AIG owns 77.7% of the outstanding common stock of Corebridge and continues to consolidate the assets, liabilities, and results ofoperations of Corebridge in AIG’s Consolidated Financial Statements. The portion of equity interest of Corebridge that AIG does not own is reflected
as noncontrolling interest in AIG’s Consolidated Financial Statements.
On December 15, 2021, AIG and Blackstone Real Estate Income Trust (BREIT), a long-term, perpetual capital vehicle affiliated with Blackstone,
completed the acquisition by BREIT of AIG’s interests in a U.S. Affordable Housing portfolio. The historical results of the U.S. Affordable Housing
portfolio were reported in our Life and Retirement operating segments.
Since April 2022, AIG and Corebridge insurance company subsidiaries have entered into separate investment management agreements withBlackRock. Certain additional insurance company subsidiaries will also enter into such investment management agreements over the coming months.
We have since transferred the management of approximately $162 billion of our investments in liquid fixed income and certain private placement
assets, including $98 billion of the Corebridge investment portfolio, to BlackRock under such investment management agreements as of December
31, 2022. In addition, AIG and Corebridge are gaining access to BlackRock’s world-class investment management technology, Aladdin.
CONFERENCE CALL
AIG will host a conference call tomorrow, Thursday, February 16, 2023 at 8:30 a.m. ET to review these results. The call is open to the public and canbe accessed via a live listen-only webcast in the Investors section of www.aig.com. A replay will be available after the call at the same location.
###
Additional supplementary financial data is available in the Investors section at www.aig.com.
Certain statements in this press release and other publicly available documents may include, and members of AIG management may from time to time
make and discuss, statements which, to the extent they are not statements of historical or present fact, may constitute “forward-looking statements”
within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward‑looking statements are intended to provide
management’s current expectations or plans for AIG’s future operating and financial performance, based on assumptions currently believed to be valid
and accurate. Forward-looking statements are often preceded by, followed by or include words such as “will,” “believe,” “anticipate,” “expect,”“expectations,” “intend,” “plan,” “strategy,” “prospects,” “project,” “anticipate,” “should,” “guidance,” “outlook,” “confident,” “focused on achieving,”“view,” “target,” “goal,” “estimate,” and other words of similar meaning in connection with a discussion of future operating or financial performance.
These statements may include, among other things, projections, goals and assumptions that relate to future actions, prospective services or products,
future performance or results of current and anticipated services or products, sales efforts, expense reduction efforts, the outcome of contingencies
such as legal proceedings, anticipated organizational, business or regulatory changes, such as the separation of the Life and Retirement businessfrom AIG, the effect of catastrophic events, both natural and man-made, and macroeconomic and/or geopolitical events, anticipated dispositions,monetization and/or acquisitions of businesses or assets, the successful integration of acquired businesses, management succession and retention
plans, exposure to risk, trends in operations and financial results, and other statements that are not historical facts.
All forward-looking statements involve risks, uncertainties and other factors that may cause AIG’s actual results and financial condition to differ,possibly materially, from the results and financial condition expressed or implied in the forward-looking statements. Factors that could cause AIG’s
actual results to differ, possibly materially, from those in specific projections, goals, assumptions and forward-looking statements include, without
limitation:

the effects 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, macroeconomic trends, fluctuations in interest rates and foreign
currency exchange rates, inflationary pressures and an economic slowdown or recession, each of which may also beaffected by geopolitical events or conflicts, including the conflict between Russia and Ukraine;
the occurrence of catastrophic events, both natural and man-made, including geopolitical events and conflicts, civil unrest
and the effects of climate change;
availability of adequate reinsurance or access to reinsurance on acceptable terms;
disruptions in the availability of AIG's or a third party’s information technology infrastructure, including hardware andsoftware, resulting from cyberattacks, data security breaches, or infrastructure vulnerabilities;
AIG's ability to realize expected strategic, financial, operational or other benefits from the separation of Corebridge as well
as AIG’s equity market exposure to Corebridge;
concentrations of AIG’s insurance, reinsurance and other risk exposures;concentrations in AIG’s investment portfolios;
AIG’s reliance on third-party investment managers;changes in the valuation of AIG’s investments;
AIG’s reliance on third parties to provide certain business and administrative services;nonperformance or defaults by counterparties, including Fortitude Reinsurance Company Ltd. (Fortitude Re);changes in judgments concerning potential cost-saving opportunities;

AIG's ability to effectively implement changes under AIG 200, including the ability to realize cost savings;
AIG's ability to adequately assess risk and estimate related losses as well as the effectiveness of AIG’s enterprise risk
management policies and procedures, including with respect to business continuity and disaster recovery plans;difficulty in marketing and distributing products through current and future distribution channels;
the effectiveness of strategies to retain and recruit key personnel and to implement effective succession plans;actions by rating agencies with respect to AIG’s credit and financial strength ratings as well as those of its businesses andsubsidiaries;changes to sources of or access to liquidity;changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill;changes in judgments or assumptions concerning insurance underwriting and insurance liabilities;changes in accounting principles and financial reporting requirements;
AIG’s ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired
businesses;
the effects of sanctions, including those related to the conflict between Russia and Ukraine and the failure to comply withthose sanctions;the effects of changes in laws and regulations, including those relating to the regulation of insurance, in the U.S. and othercountries in which AIG and its businesses operate;changes to tax laws in the U.S. and other countries in which AIG and its businesses operate;
the outcome of significant legal, regulatory or governmental proceedings;
the impact of COVID-19 and its variants or other pandemics and responses thereto;
AIG’s ability to effectively execute on environmental, social and governance targets and standards; 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 Annual Report on Form 10-K for the year ended December
31, 2022 (which will be filed with the Securities and Exchange Commission (SEC)), Part I, Item 2. MD&A in AIG’s
Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022, Part I, Item 2. MD&A of the Quarterly
Report on Form 10-Q for the quarterly period ended June 30, 2022, Part I, Item 2. MD&A of the Quarterly Report on Form
10-Q for the quarterly period ended March 31, 2022, 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, 2021.
Forward-looking statements speak only as of the date of this press release, or in the case of any document incorporated by reference, the date of that
document. AIG is not under any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materially fromthose expressed or implied in any forward-looking statements is disclosed from time to time in our filings with the SEC.
###COMMENT ON REGULATION G AND NON-GAAP FINANCIAL MEASURES
Throughout this press release, including the financial highlights, AIG presents its financial condition and results of operations in the way it believes will
be most meaningful and representative of its business results. Some of the measurements AIG uses are “Non-GAAP financial measures” under SEC
rules and regulations. GAAP is the acronym for generally accepted accounting principles in the United States. The non-GAAP financial measures AIG
presents are listed below and may not be comparable to similarly-named measures reported by other companies. The reconciliations of suchmeasures to the most comparable GAAP measures in accordance with Regulation G are included within the relevant tables attached to this news
release or in the Fourth Quarter 2022 Financial Supplement available in the Investors section of AIG’s website, www.aig.com.
Unless otherwise mentioned or unless the context indicates otherwise, we use the terms “AIG,” “we,” “us” and “our” to refer toGroup, Inc., a Delaware corporation, and its consolidated subsidiaries.

American International

AIG uses the following operating performance measures because AIG believes they enhance the understanding of the underlying profitability ofcontinuing operations and trends of AIG’s business segments. AIG believes they also allow for more meaningful comparisons with AIG’s insurancecompetitors. When AIG uses these measures, reconciliations to the most comparable GAAP measure are provided on a consolidated basis.
Book Value per Common Share, Excluding Accumulated Other Comprehensive Income (Loss) (AOCI) adjusted for the cumulative
unrealized gains and losses related to Fortitude Re funds withheld assets and Deferred Tax Assets (DTA) (Adjusted Book Value per
Common Share) is used to show the amount of our net worth on a per-common share basis after eliminating 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 our available for salesecurities portfolio wherein there is largely no offsetting impact for certain related insurance liabilities. In addition, we adjust for the cumulative
unrealized gains and losses related to Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG post
deconsolidation of Fortitude Re (Fortitude Re funds withheld assets) since these fair value movements are economically transferred to Fortitude Re.
We exclude deferred tax assets representing U.S. tax attributes related to net operating loss carryforwards and foreign tax credits as they have not yet
been utilized. Amounts for interim periods are estimates based on projections of full-year attribute utilization. As net operating loss carryforwards andforeign tax credits are utilized, the portion of the DTA utilized is included in these book value per common share metrics. Adjusted Book Value 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, andDeferred 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 (ROCE) – Adjusted After-tax Income Excluding AOCI adjusted for the cumulative unrealized gains andlosses related to Fortitude Re funds withheld assets and DTA (Adjusted return on common equity) is used to show the rate of return oncommon shareholders’ equity. We believe this measure is useful to investors because it eliminates items that can fluctuate significantly from period toperiod, including changes in fair value of our available for sale securities portfolio, foreign currency translation adjustments and U.S. tax attributedeferred tax assets. This measure also eliminates the asymmetrical impact resulting from changes in fair value of our available for sale securities
portfolio wherein there is largely no offsetting impact for certain related insurance liabilities. In addition, we adjust for the cumulative unrealized gains
and losses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re. We exclude
deferred tax assets representing U.S. tax attributes related to net operating loss carryforwards and foreign tax credits as they have 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 our internal allocation model. Tax expense or benefit is calculated based on an internal attribution
methodology that considers among other things the taxing jurisdiction in which the segments conduct business, as well as the deductibility of
expenses in those jurisdictions.
Adjusted revenues exclude Net realized gains (losses), income from non-operating litigation settlements (included in Other income for GAAP
purposes), changes in fair value of securities used to hedge guaranteed living benefits (included in Net investment income for GAAP purposes) andincome from elimination of the international reporting lag. Adjusted revenues is a GAAP measure for our segments.
Adjusted Pre-tax Income (APTI) is derived by excluding the items set forth below from income from continuing operations before income tax. Thisdefinition is consistent across our segments. These items generally fall into one or more of the following broad categories: legacy matters having no
relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; andmeasures that we believe to be common to the industry. APTI is a GAAP measure for our segments. Excluded items include the following:
net loss reserve discount benefit (charge);
pension expense related to lump sum
payments to former employees;
changes in fair value of securities used to hedge guaranteed living benefits;

net gain or loss on divestitures and other;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;

non-operating litigation reserves andsettlements;changes in the fair value of equity securities;
net investment income on Fortitude Re funds withheld assets;
following deconsolidation of Fortitude Re, net realized gains and losses on Fortitude
Re funds withheld assets;loss (gain) on extinguishment of debt;
all net realized gains and losses except earned income (periodic settlements andchanges in settlement accruals) on derivative instruments used for non- qualifying(economic) hedging or for asset replication. Earned income on such economic hedges
is reclassified from net realized gains and losses to specific APTI line items based on
the economic risk being hedged (e.g. net investment income and interest credited topolicyholder account balances);income or loss from discontinued operations;

restructuring and other costs related toinitiatives designed to reduce operating
expenses, improve efficiency and simplify ourorganization;
the portion of favorable or unfavorable prioryear reserve development for which we haveceded 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;
non-recurring costs associated with theimplementation of non-ordinary course legal
or regulatory changes or changes toaccounting principles; andincome from elimination of the international
reporting lag.

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

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

1. Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned (NPE)
2. Acquisition ratio = Total acquisition expenses ÷ NPE
3. General operating expense ratio = General operating expenses ÷ NPE
4. Expense ratio = Acquisition ratio + General operating expense ratio
5. Combined ratio = Loss ratio + Expense ratio
6. CATs and reinstatement premiums = [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 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 70 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 affiliatesof American International Group, Inc.. Products or services may not be available in all countries and jurisdictions, and coverage is subject tounderwriting requirements and actual policy language. Non-insurance products and services may be provided by independent third parties. Certain
property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, andinsureds 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,
2021

2022
Total
Tax

Non-

(Benefit) controlling
Pre-tax Charge
Pre-tax income/net income, including noncontrollinginterests$ 5,048 $ 942

Noncontrolling interests
Pre-tax income/net income attributable to AIG

5,048

942

Total Tax Non-

After

Interests(e) Tax$ —$ 4,106

(360)

(360)

(360)

3,746

(Benefits) controlling
Pre-tax Charge

$ 279

279

$ 93

93

After

Interests(e) Tax

$ —

$ 186

85

85

85

271

Dividends on preferred stock

7

7

Net income attributable to AIG common shareholders

3,739

264

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

97

—

(97)

(68)

—

68

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

(12)

—

12

10

—

(10)

Changes in fair value of securities used to hedge guaranteedliving benefits

—

(1)

—

1

(1)

—

—

(1)

Changes in benefit reserves and DAC, VOBA and DSI
related to net realized gains (losses)

(22)

(4)

—

(18)

(121)

(25)

—

(96)

Changes in the fair value of equity securities

201

44

—

157

12

2

—

10

Loss on extinguishment of debt

240

51

—

189

4

1

—

3

Net investment income on Fortitude Re funds withheld assets

(483)

(102)

—

(381)

(309)

(65)

—

(244)

Net realized (gains) losses on Fortitude Re funds withheld
assets

(467)

(98)

—

(369)

174

37

—

137

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

720

150

—

570

370

78

—

292

Net realized (gains) losses(c)

(403)

(81)

—

(322)

1,507

367

—

1,140

Loss from discontinued operations——

Net (gain) loss on divestitures and other(2,936) (627)—(2,309)

127

26

—

101

Non-operating litigation reserves and settlements

—

1

—

(1)

—

—

—

—

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

13

2

—

11

46

9

—

37

Net loss reserve discount benefit

(255)

(53)

—

(202)

(707)

(149)

—

(558)

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

7

1

—

6

60

13

—

47

Integration and transaction costs associated with acquiring ordivesting businesses

28

6

—

22

58

12

—

46

Restructuring and other costs

129

27

—

102

155

35

—

120

Non-recurring costs related to regulatory or accountingchanges

10

3

—

7

15

3

—

12

Net impact from elimination of international reporting lag(d)

—

—

—

—

(127)

(27)

—

(100)

222

222

(244)

(244)

$ (138)$ 1,339$ 352$ (159)$ 1,024

Total
Tax

Non-

Noncontrolling interests(e)Adjusted pre-tax income/Adjusted after-tax income
attributable to AIG common shareholders$ 1,830 $ 346$ 1,542

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,
2021

2022
Total
Tax

Non-

(Benefit) controlling
Pre-tax Charge
Pre-tax income/net income, including noncontrollinginterests$ 12,099 $ 2,176

Noncontrolling interests
Pre-tax income/net income attributable to AIG

12,099

2,176

After

Interests(e) Tax$ —$ 9,923

(535)

(535)

(535)

9,388

(Benefit) controlling
Pre-tax Charge$ 14,282 $ 3006

14,282

3,006

After

Interests(e) Tax$ —$ 11,275

(999)

(999)

(999)

10,276

Dividends on preferred stock29

29

Net income attributable to AIG common shareholders

9,359

10,247

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

998

—

(998)

22

—

(22)

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

(718)

—

718

25

—

(25)

Changes in fair value of securities used to hedge guaranteedliving benefits

(61)

(13)

—

(48)

(30)

(6)

—

(24)

Changes in benefit reserves and DAC, VOBA and DSI
related to net realized gains (losses)

52

11

—

41

308

65

—

243

Changes in the fair value of equity securities

237

49

—

188

53

11

—

42

Loss on extinguishment of debt

389

82

—

307

303

64

—

239

Net investment income on Fortitude Re funds withheld
assets(1,971) (414)—(1,557)

(943)

(198)

—

(745)

Net realized (gains) losses on Fortitude Re funds withheld
assets(1,003) (211)

—

(792)

486

102

—

384

Net realized gains on Fortitude Re funds withheld embedded
derivative

603

126

—

477

(7,481)(1,571)—(5,910)

Net realized gains(c)(1,623) (341)—(1,282)(1,750)(367)—(1,383)

Loss from discontinued operations—

1

Net (gain) loss on divestitures and other(3,044) (650)—(2,394)

82

17

—

65

Non-operating litigation reserves and settlements

3

1

—

2

(41)

(9)

—

(32)

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

(186)

(39)

—

(147)

(160)

(34)

—

(126)

Net loss reserve discount benefit

(193)

(40)

—

(153)

(703)

(148)

—

(555)

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

34

7

—

27

60

13

—

47

Integration and transaction costs associated with acquiring
or divesting businesses

83

18

—

65

194

41

—

153

Restructuring and other costs

433

91

—

342

570

120

—

450

Non-recurring costs related to regulatory or accountingchanges

68

15

—

53

37

8

—

29

Net impact from elimination of international reporting lag(d)——Noncontrolling interests(e)Adjusted pre-tax income/Adjusted after-tax income
attributable to AIG common shareholders$ 5,920 $ 1,148

—

—

222

222

$ (313)$ 4,430(127)$ 5,140(27)$ 1,134

—

(100)

608

608

$ (391)$ 3,586(a) Twelve months ended December 31, 2021 includes the completion of audit activity by the Internal Revenue Service.

(b)

Twelve months ended December 31, 2021 includes an increase in the valuation allowance against a portion of certain tax attribute carryforwardsof AIG's U.S. federal consolidated income tax group, as well as net valuation allowance release in certain foreign jurisdictions.

Includes all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative(c) instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld
assets.
Effective in the quarter ended December 31, 2022, the foreign property and casualty subsidiaries report on a calendar year ending December 31.
We determined that the effect of not retroactively applying this change was immaterial to our Consolidated Financial Statements for the current(d)and prior periods. Therefore, we reported the cumulative effect of the change in accounting principle within the Consolidated Statements ofIncome (Loss) for the year ended December 31, 2022 and did not retrospectively apply the effects of this change to prior periods.
(e) Includes the portion of equity interest of non-operating income of Corebridge and consolidated investment entities that AIG does not own.
American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per common share data)

Summary of Key Financial Metrics
Three Months Ended
December 31,

Twelve Months Ended
December 31,

2021

2022

2021

2022

Income from continuing operations$ 4.48$ 0.35(92.2)% $ 10.95$ 13.16

20.2

Income from discontinued operations

—

—

NM

—

—

NM

$ 4.48$ 0.35(92.2)$ 10.95$ 13.16

20.2

Income from continuing operations

4.38$ 0.35(92.0)

10.82$ 13.01

20.2

Income from discontinued operations

—

—

NM

—

—

NM

Net income attributable to AIG common shareholders$ 4.38$ 0.35(92.0)$ 10.82$ 13.01

20.2

Adjusted after-tax income attributable to AIG commonshareholders per diluted share$ 1.58$ 1.36(13.9)% $ 5.12$ 4.55(11.1)

Earnings per common share:% Inc. (Dec.)% Inc. (Dec.)

Basic

Net income attributable to AIG common shareholders%

Diluted%Weighted average shares outstanding:
Basic

833.9

745.2

854.3

778.6

Diluted

872.0

754.9

864.9

787.9

Reconciliation of Book Value per Common Share
December 31,
2021

As of period end:

Total AIG shareholders' equity

September 30,
2022

December 31,
2022$ 65,956$ 39,023$ 40,002

Less: Preferred equity

485

485

485

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

38,53839,517

Less: Deferred tax assets (DTA)*

5,221

4,556

4,518

Less: Accumulated other comprehensive income (AOCI)

6,687(23,793)(22,092)

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

2,791(3,021)(2,862)

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re
funds withheld assets

3,896(20,772)(19,230)$ 56,354$ 54,754$ 54,229

Goodwill

4,056

3,860

3,927

Value of business acquired

111

91

94

Value of distribution channel acquired

458

428

418

Other intangibles

300

286

286

Total intangible assets

4,925

4,665

4,725

$ 51,429$ 50,089$ 49,504

818.7

747.2

734.1

Total adjusted common shareholders' equity (b)Less: Intangible assets:

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

December 31, 2021

% Inc.
(Dec.)

Book value per common share (a÷d)

$

79.97

(32.7) % $ 51.58

4.4

Adjusted book value per common share (b÷d)

68.83

7.3

73.28

0.8

73.87

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

62.82

7.3

67.04

0.6

67.43

September 30, 2022

% Inc.
(Dec.)

December 31, 2022

%$

53.83

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

Reconciliation of Return On Common Equity
Three Months Ended
December 31,

Twelve Months Ended
December 31,

2021

2022

2021

2022

Actual or annualized net income (loss) attributable to AIG commonshareholders (a)$ 14,956$ 1,056$ 9,359$ 10,247

Actual or annualized adjusted after-tax income attributable to AIG commonshareholders (b)$ 5,356$ 4,096$ 4,430$ 3,586

Average AIG Common Shareholders' equity (c)$ 64,925$ 39,028$ 64,704$ 48,769

Less: Average DTA*

6,152

4,537

7,025

4,739

Less: Average AOCI

7,647

(22,943)

9,096(12,551)

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

2,879(2,942)

3,200(1,053)

Subtotal: AOCI plus cumulative unrealized gains and losses related toFortitude Re funds withheld assets

4,768(20,001)$ 5,896$ (11,498)$ 54,005$ 54,492$ 51,783$ 55,528

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

23.0

%

2.7

%

14.5

%

21.0

%

Adjusted return on common equity (b÷d)

9.9

%

7.5

%

8.6

%

6.5

%

* Represents deferred tax assets only related to U.S. net operating loss and foreign tax credit carryforwards on a U.S. GAAP basis and excludes other balance sheet
deferred tax assets and liabilities.

Reconciliation of Net Investment Income
Three Months Ended

Twelve Months Ended

December 31,

December 31,

2021

2022

2021

2022

$ 3,565$ 3,258$ 14,612$ 11,767

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

(14)

(60)

(55)

Changes in the fair value of equity securities

12

237

53

Net Investment Income per Consolidated Statements of Operations

201

Net investment income on Fortitude Re funds withheld assets

(483)

(309)

(1,971)(943)

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

22

54

122

216

Net impact from elimination of International reporting lag

—

(41)

—

(41)

$ 3,291$ 2,960$ 12,940$ 10,997

Total Net Investment Income - APTI Basis
Net Premiums Written - Change in Constant Dollar

Three Months Ended December 31, 2022
Global General
General Insurance

Global -Commercial PersonalInternational Commercial Personal

Insurance Lines

Insurance Lines

Insurance

Increase (decrease) in original currency

1

%

3

%

(2

)%

2

%

1

%

Foreign exchange effect

(7

)

(5

)

(12

)

(10

)

(17

)

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

(6

)%

(2

)%

(14

)%

(8

)%

(16

)%

Foreign exchange effect on worldwide premiums:
Change in net premiums written

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, 2022
2021

2022

Combined ratio

92.4

89.9

Catastrophe losses and reinstatement premiums

(2.9)

(3.8)

Prior year development, net of reinsurance and prior year premiums

0.3

2.3

Accident year combined ratio, as adjusted

89.8

88.4

Total General InsuranceNorth America
Combined ratio

95.0

86.6

Catastrophe losses and reinstatement premiums

(5.6)

(4.2)

Prior year development, net of reinsurance and prior year premiums

0.3

5.8

Accident year combined ratio, as adjusted

89.7

88.2

Combined ratio

94.8

84.4

Catastrophe losses and reinstatement premiums

(5.8)

(4.4)

Prior year development, net of reinsurance and prior year premiums

(0.1)

5.9

Accident year combined ratio, as adjusted

88.9

85.9

Combined ratio

96.0

102.5

Catastrophe losses and reinstatement premiums

(4.0)

(2.8)

Prior year development, net of reinsurance and prior year premiums

2.9

5.6

Accident year combined ratio, as adjusted

94.9

105.3

Combined ratio

90.1

93.2

Catastrophe losses and reinstatement premiums

(0.6)

(3.5)

Prior year development, net of reinsurance and prior year premiums

0.4

(1.1)

Accident year combined ratio, as adjusted

89.9

88.6

88.1

89.4

North America - Commercial Lines

North America - Personal Insurance

International

International - Commercial Lines
Combined ratio

Catastrophe losses and reinstatement premiums

(1.1)

(5.2)

Prior year development, net of reinsurance and prior year premiums

(0.3)

(2.6)

Accident year combined ratio, as adjusted

86.7

81.6

Loss ratio

50.6

54.8

Catastrophe losses and reinstatement premiums

—

(1.0)

Prior year development, net of reinsurance and prior year premiums

1.1

1.0

Accident year loss ratio, as adjusted

51.7

54.8

Combined ratio

93.0

98.9

Catastrophe losses and reinstatement premiums

—

(1.0)

Prior year development, net of reinsurance and prior year premiums

1.1

1.0

Accident year combined ratio, as adjusted

94.1

98.9

Combined ratio

91.8

86.3

Catastrophe losses and reinstatement premiums

(3.7)

(4.7)

Prior year development, net of reinsurance and prior year premiums

(0.2)

2.5

Accident year combined ratio, as adjusted

87.9

84.1

International - Personal Insurance

Global - Commercial Insurance

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

Reconciliation of General Insurance Return on Adjusted Segment Common Equity

Three Months Ended
December 31, 2022

2021

2022

$ 1,509$ 1,212Interest expense on attributed financial debt

150

131

Adjusted pre-tax income including attributed interest expense

1,359

1,081

Income tax expense

305

291

Adjusted after-tax income

1,054

790

Dividends declared on preferred stock33

Adjusted after-tax income attributable to common shareholders$ 1,051$ 787

Ending adjusted segment common equity$ 26,429$ 30,310

Average adjusted segment common equity$ 26,157$ 29,230

Return on adjusted segment common equity

16.1

Adjusted pre-tax income

Total segment shareholder’s equity

%

10.8

$ 26,283$ 24,225

Less: Preferred equity

205

212

Total segment common equity

26,07824,013

Less: Accumulated other comprehensive income (AOCI)(189)(6,979)Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

162

(682)

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld assets(351)(6,297)$ 26,429$ 30,310

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

Three Months Ended
December 31, 2022
2021

2022

%

Adjusted pre-tax income

$ 969

$ 781

Interest expense on attributed financial debt

72

110

Adjusted pre-tax income including attributed interest expense

897

671

Income tax expense

181

131

Adjusted after-tax income

716

540

Dividends declared on preferred stock22

Adjusted after-tax income attributable to common shareholders

$ 714

$ 538

Ending adjusted segment common equity$ 20,525$ 21,295

Average adjusted segment common equity$ 20,880$ 21,407

Return on adjusted segment common equity

13.7

Total segment shareholder’s equity% 10.1$ 28,063$ 7,472

Less: Preferred equity

138

154

Total segment common equity

27,925

7,318

Less: Accumulated other comprehensive income (AOCI)

10,029(16,157)

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

2,629(2,180)Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds withheld assets 7,400(13,977)

Total adjusted segment common equity$ 20,525

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, 2022
2021

2022

$ 21,295%

Individual Retirement:
Premiums

$ 68

$ 62

Deposits

3,244

3,764

Other

(4)

1

$ 3,308$ 3,827$ 7$ 3

Premiums and deposits

Group Retirement:
Premiums
Deposits

1,855

2,240

Other

—

—

$ 1,862$ 2,243

Premiums

$ 518

$ 705

Deposits

426

410

Other

262

64

$ 1,206$ 1,179

Premiums$ 2,150$ 1,375

Deposits

77

169

Other

6

7

$ 2,233$ 1,551

Premiums$ 2,743$ 2,145

Deposits

5,602

6,583

Premiums and depositsLife Insurance:

Premiums and deposits

Institutional Markets:

Premiums and deposits

Total Life and Retirement:OtherPremiums and deposits

264

72

$ 8,609$ 8,800

View source version on businesswire.com: https://www.businesswire.com/news/home/20230215005682/en/
Quentin McMillan (Investors): quentin.mcmillan@aig.com
Claire Talcott (Media): claire.talcott@aig.com
Source: American International Group, Inc.