FOR IMMEDIATE RELEASE

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

Contacts:
Sabra Purtill (Investors): sabra.purtill@aig.com
Shelley Singh (Investors): shelley.singh@aig.com
Claire Talcott (Media): claire.talcott@aig.com
AIG Reports Fourth Quarter and Full Year 2020 Results❖ General Insurance adjusted pre-tax income (APTI) increased 4% compared tothe prior year quarter reflecting continued improvement and growth inCommercial Lines❖ Life and Retirement APTI increased 20% compared to the prior year quarter
supported by diverse products and distribution strength❖ Strong net investment income driven by improved alternative investment
returns during the quarter❖ Strong balance sheet and lower leverage; Board of Directors declares
dividends

FOURTH QUARTER NOTEWORTHY ITEMS• General Insurance APTI increased 4% to $809 million compared to the prior year
quarter due to higher net investment income offset by higher catastrophe losses, netof reinsurance (CATs). General Insurance reported $545 million of CATs which
included $178 million, or 3.0 combined ratio points, of COVID-19 CATs resulting in a
General Insurance combined ratio of 102.8 compared to 99.8 in the prior year quarter.
• The General Insurance accident year combined ratio, as adjusted*, of 92.9 improved
for the tenth consecutive quarter with a 2.9 point improvement from the prior year
quarter.
• Life and Retirement APTI increased 20% to $1,027 million compared to the prior year
quarter driven by strong net investment income and improved APTI in most operating
segments. Return on adjusted segment common equity – Life and Retirement* for the
fourth quarter was 16.4%, on an annualized basis.
• Net loss attributable to AIG common shareholders was $60 million, or $0.07 percommon share, compared to net income of $922 million, or $1.03 per diluted commonshare, in the prior year quarter.
• Adjusted after-tax income attributable to AIG common shareholders* (AATI) was $827
million, or $0.94 per diluted common share, compared to $923 million, or $1.03 perdiluted common share, in the prior year quarter.
• As of December 31, 2020, book value per common share was $76.46, an increase of
3.5% compared to September 30, 2020. Adjusted book value per common share* was$57.01, an increase of 0.4% compared to September 30, 2020.
• Return on Common Equity (ROCE) and Adjusted ROCE* were (0.4)% and 6.7%,
respectively, on an annualized basis, for the fourth quarter of 2020.
• The Board of Directors declared a quarterly cash dividend of $0.32 per share on AIG
common stock and $365.625 per share on AIG preferred stock.
* 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.

1

FOR IMMEDIATE RELEASENEW YORK, February 16, 2021 – American International Group, Inc. (NYSE: AIG) today
reported financial results for the fourth quarter and full year ended December 31, 2020.
For the full year of 2020, net loss attributable to AIG common shareholders was $6.0
billion, or $6.88 per common share, compared to net income of $3.3 billion, or $3.74 perdiluted common share, in the prior year. The loss was primarily driven by a $6.7 billion
after-tax loss from the sale and deconsolidation of Fortitude Group Holdings LLC (Fortitude)on June 2, 2020. The sale, for which AIG received $2.2 billion in consideration at closing,
improved AIG’s risk profile and reduced exposure to long-tail runoff liabilities and related
interest rate risk.
AATI was $2.2 billion, or $2.52 per diluted common share, for the full year of 2020,
compared to $4.1 billion, or $4.58 per diluted common share, in the prior year. The
decrease was primarily due to lower APTI from General Insurance and higher adjusted
pre-tax loss (APTL) from Other Operations. The decrease in General Insurance APTI was
primarily due to higher CATs including $1.1 billion of COVID-19 CATs. The increase in
Other Operations APTL was primarily due to the sale of Fortitude in the second quarter of
2020, lower net investment income on available for sale fixed maturity securities, theimpact of consolidated investment entities on consolidation and eliminations, and higher
interest expense related to debt issuances in the second quarter of 2020.
For the fourth quarter of 2020, net loss attributable to AIG common shareholders was $60
million, or $0.07 per common share, compared to net income of $922 million, or $1.03 perdiluted common share, in the prior year quarter. The loss was primarily due to $1.2 billion ofafter-tax net realized capital losses, principally from the non-economic impact of the nonperformance risk adjustment on the fair value of variable annuity embedded derivatives, net ofhedges, and from losses on other derivatives and hedges.
AATI was $827 million, or $0.94 per diluted common share, for the fourth quarter of 2020
compared to $923 million, or $1.03 per diluted common share, in the prior year quarter
primarily due to higher CATs, including COVID-19 CATs, as well as unfavorable prior year
loss reserve development, net of reinsurance, (PYD) partially offset by improved alternative
investment returns. The decrease also reflects the sale of Fortitude in the second quarter of
2020, which had APTI of $70 million in the fourth quarter of 2019.
Total consolidated net investment income for the fourth quarter of 2020 was $4.0 billion
compared to $3.6 billion in the prior year quarter. Total net investment income, APTI basis*, of$3.2 billion decreased 7%. Excluding the impact of Fortitude in the fourth quarter of 2019,
fourth quarter 2020 total net investment income, APTI basis*, increased 9%, or $262
million, compared to the prior year quarter primarily reflecting higher private equity andhedge fund returns.
Brian Duperreault, AIG’s Chief Executive Officer, said: “AIG’s fourth quarter and full year
2020 operating results demonstrate the continued progress we are making to position AIG
for long-term, sustainable and profitable growth. We are effectively managing the impactsof COVID-19 and natural catastrophes and remain well capitalized in this environment of
unprecedented uncertainty.

2

FOR IMMEDIATE RELEASE“The General Insurance business continues to improve, with a 1.9 point improvement in
the accident year combined ratio, as adjusted, compared to 2019 and 5.6 point
improvement in the accident year combined ratio, as adjusted, compared to 2018. Life andRetirement delivered strong returns and remains well positioned to meet the ever-growing
needs for protection, retirement savings and lifetime income solutions.
“As I transition into my role as Executive Chairman, I want to thank our global colleagues
who have shown unyielding resilience, dedication and perseverance in their efforts toserve our clients, distribution partners, communities and other stakeholders – even as
their own lives and work situations have been severely disrupted by the COVID-19 crisis.
This strength of human spirit is at the core of AIG and visible in all that we do. I look forward to
supporting Peter Zaffino as he becomes the next Chief Executive Officer of AIG and, alongwith our world-class team, continues AIG’s journey to become a top performing company andleading insurance franchise.”Book value per common share was $76.46 as of December 31, 2020, an increase of 3.5%
compared to September 30, 2020. Adjusted book value per common share was $57.01, an
increase of 0.4% compared to September 30, 2020 reflecting unrealized gains on theinvestment portfolio. ROCE and Adjusted ROCE were (9.4)% and 4.4%, respectively, for thetwelve months ended December 31, 2020 and (0.4)% and 6.7%, respectively, on anannualized basis for the fourth quarter of 2020.
As of December 31, 2020, AIG Parent liquidity stood at approximately $10.5 billion compared
to $7.6 billion at December 31, 2019. In December 2020, AIG repaid $708 million aggregate
principal amount of its 6.400% Notes Due 2020. AIG’s total debt and preferred stock leverageat December 31, 2020 was 28.4%. On February 1, 2021, AIG repaid $1.5 billion aggregate
principal amount of its 3.300% Notes Due 2021.
Today, the Board of Directors declared a quarterly cash dividend of $0.32 per share on
AIG Common Stock (NYSE: AIG), par value $2.50 per share. The dividend is payable on
March 30, 2021 to stockholders of record at the close of business on March 16, 2021.
The 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 liquidationpreference of $25,000 per share, which are represented by depositary shares (NYSE: AIG
PRA), each representing a 1/1,000th interest in a share of preferred stock. Holders ofdepositary shares will receive $0.365625 per depositary share. The dividend is payable on
March 15, 2021 to holders of record at the close of business on February 26, 2021.

3

FOR IMMEDIATE RELEASEFINANCIAL SUMMARY
Three Months Ended
December 31,($ in millions, except per common share amounts)

Twelve Months Ended
December 31,

Net income (loss) attributable to AIG common shareholders
Net income (loss) per diluted share attributable to
AIG common shareholders (a)

$

2020
2019
(60) $
922

2020
2019
$ (5,973) $ 3,326$(0.07) $1.03$(6.88) $Adjusted pre-tax income (loss)
General InsuranceLife and Retirement
Other Operations$

1,116 $
809
1,027
(720)

1,211
778
858
(425)

$

3,003 $ 5,470
1,901
3,533
3,531
3,553
(2,429)(1,616)

Net investment income
Net investment income, APTI basis

$

3,957
3,226

$

3,587
3,462

$ 13,631
12,321$ 14,619
14,390

$

827

$

923

$

2,201

$

4,078

$

0.94

$

1.03

$

2.52

$

4.58

Adjusted after-tax income attributable to AIG commonshareholders
Adjusted after-tax income per diluted share attributable
to AIG common shareholders
Weighted average common shares outstanding - diluted (a)868.4

Return on common equity
Adjusted return on common equity
Book value per common share
Adjusted book value per common share
Common shares outstanding

896.4(0.4) %
6.7 %
$
$

76.46
57.01
861.6

$
$

869.3

5.7 %
7.3 %
74.93
58.89
870.0

889.5

(9.4) %
4.4 %
$
$

76.46
57.01
861.6

3.74

$
$

5.3 %
8.3 %
74.93
58.89
870.0

(a) For periods reporting a loss, basic average common shares outstanding are used to calculate net income (loss) per
diluted share attributable to AIG common shareholders. Diluted shares represent basic shares for the three- and twelvemonth periods ended December 31, 2020 because we reported a net loss attributable to AIG common shareholders fromcontinuing operations in those periods.

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

4

FOR IMMEDIATE RELEASE

GENERAL INSURANCE($ in millions)
Gross premiums written

Three Months Ended December 31,
2020
2019
$
7,135
$
7,306

Change(2) %Net premiums written
North America
North America Commercial Lines
North America Personal Insurance
International
International Commercial Lines
International Personal Insurance

$

5,565
2,361
1,992
369
3,204
1,662
1,542

$

5,830
2,639
1,815
824
3,191
1,554
1,637

(5) %
(11)
10
(55)
7
(6)

Underwriting income (loss)
North America
North America Commercial Lines
North America Personal Insurance
International
International Commercial Lines
International Personal Insurance

$

(171)
(389)
(285)
(104)
218
138
80

$

12
(96)
(188)
92
108
52
56

NM %
(305)
(52)
NM
102
165
43

Net investment income, APTI basis
Adjusted pre-tax income
Return on adjusted segment common equity

$
$

980
$
809
$
7.5 %

766
778
7.2 %

28 %
4 %
0.3 pts

Underwriting ratios:
North America Combined Ratio (CR)
North America Commercial Lines CR
North America Personal Insurance CR
International CR
International Commercial Lines CR
International Personal Insurance CR
General Insurance (GI) CR
GI Loss ratio
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustments for ceded premium under reinsurance
contracts and other
GI Accident year loss ratio, as adjusted
GI Expense ratio
GI Accident year combined ratio, as adjusted (AYCR)
Accident year combined ratio, as adjusted (AYCR):
North America AYCR
North America Commercial Lines AYCR
North America Personal Insurance AYCR
International AYCR
International Commercial Lines AYCR
International Personal Insurance AYCR

5

114.9
112.4
133.2
93.6
92.1
95.0
102.8

103.2
108.8
88.6
96.9
96.9
96.8
99.8

11.7 pts
3.6
44.6
(3.3)
(4.8)
(1.8)
3.0

70.2

65.6

4.6 pts

(9.0)
(0.9)

(6.5)
2.2

(2.5)
(3.1)

60.3
32.6
92.9

0.3
61.6
34.2
95.8

(0.3)
(1.3)
(1.6)
(2.9)

94.7
93.6
102.6
91.7
89.2
94.1

96.1
97.6
92.2
95.6
94.1
97.0

(1.4) pts
(4.0)
10.4
(3.9)
(4.9)
(2.9)

FOR IMMEDIATE RELEASE

General Insurance• Net premiums written in the fourth quarter of 2020 decreased by 5% to $5.6 billion
principally due to a 55% decrease in North America Personal Insurance as a result ofcessions pursuant to a series of quota share reinsurance agreements placed in thesecond quarter of 2020 related to AIG’s Private Client Group as well as the adverse
impact of COVID-19 on the Travel business. North America Commercial Lines andInternational Commercial Lines net premiums written grew 10% and 7%, respectively,from the prior year quarter reflecting strong rate momentum and improving retention
across most lines.
•

Fourth quarter APTI was $809 million compared to APTI of $778 million in the prioryear quarter and was comprised of an underwriting loss of $171 million compared tounderwriting income of $12 million in the prior year quarter, and net investment incomeof $980 million, up 28% from the prior year quarter. The underwriting loss included$545 million of CATs reflecting $367 million of non-COVID-19 CATs primarily related
to Hurricanes Sally, Zeta, Laura and Delta and $178 million of COVID-19 CATs,
primarily related to Travel, Contingency and Validus Reinsurance, Ltd., compared to$411 million of CATs in the prior year quarter. In addition, the underwriting loss also
included unfavorable PYD of $45 million, and included $52 million of favorable
amortization from the Adverse Development Cover (ADC) compared to favorable PYD
of $153 million in the prior year quarter which reflected $58 million of favorable
amortization from the ADC and favorable PYD related to California wildfire subrogation
recoverables.

•

The General Insurance combined ratio was 102.8, a 3.0 point increase from 99.8 in
the prior year quarter, and included 9.0 points of CATs and reinstatement premiums,of which 3.0 points related to COVID-19 CATs, and 0.9 points of unfavorable PYD.
The General Insurance accident year combined ratio, as adjusted, was 92.9, an
improvement of 2.9 points from the prior year quarter and was comprised of a 60.3
accident year loss ratio, as adjusted* and an expense ratio of 32.6.

•

Commercial Lines continued to show strong improvement due to improved businessmix along with rate increases. The accident year combined ratio, as adjusted, for North
America Commercial Lines improved 4.0 points to 93.6 and for International
Commercial Lines improved 4.9 points to 89.2.

•

The North America Personal Insurance accident year combined ratio, as adjusted,
increased 10.4 points to 102.6 in the prior year quarter, due to the adverse impact of
COVID-19 on the Travel business and change in business mix driven by a series of
quota share reinsurance agreements as described above. The International Personal
Insurance accident year combined ratio, as adjusted, was 94.1, a 2.9 point
improvement reflecting lower claims frequency and change in business mix.

•

The General Insurance expense ratio improved 1.6 points to 32.6 and was comprisedof an acquisition ratio of 19.8 and general operating expense (GOE) ratio of 12.8.
General Insurance GOE decreased by 6% to $768 million compared to the prior year
quarter reflecting continued expense discipline.

6FOR IMMEDIATE RELEASE

LIFE AND RETIREMENT
Three Months Ended($ in millions)

December 31,
2020
2019
1,027 $
858
552
500
318
209
30
67
127
82

Change
20 %
10
52
(55)
55

Adjusted pre-tax income
Individual Retirement
Group Retirement
Life InsuranceInstitutional Markets$

Premiums and deposits
Individual Retirement
Group Retirement
Life InsuranceInstitutional Markets

$

7,400
2,758
2,199
1,156
1,287

$

7,125
3,156
2,312
1,106
551

4%
(13)
(5)
5
134

Premiums & fees
Individual Retirement
Group Retirement
Life InsuranceInstitutional Markets

$

1,714
265
124
861
464

$

1,749
248
114
837
550

(2) %
7
9
3
(16)

Net flows
Individual Retirement
Group Retirement$(1,031)
(878)
(153)

$

(1,764)
(955)
(809)

42 %
8
81

Net investment income, APTI basis
Return on adjusted segment common equity$

2,384 $
16.4 %

2,135
14.6 %

12 %1.8 pts

Life and Retirement• Life and Retirement reported APTI of $1,027 million for the fourth quarter of 2020
compared to $858 million in the prior year quarter due to increased APTI in Individualand Group Retirement and Institutional Markets. The increase in APTI primarilyreflects higher net investment income, driven by private equity returns which arereported on a one quarter lag and higher call and tender income due to favorable
impacts from lower interest rates and tighter spreads, as well as lower GOE. The
favorable impacts of these factors on APTI was partially offset by base spreadcompression and, in Life Insurance, COVID-19 mortality claims.
•

Premiums were $950 million, a decrease of 4% compared to $994 million in the prioryear quarter. Premiums and deposits increased 4%, or $275 million, from the prioryear quarter to $7.4 billion due to Institutional Markets activity, partially offset by lower
Fixed and Index Annuities and Group Retirement deposits. Sales have improved fromthe first half of 2020, reflecting the continued recovery from broad industry sales
disruptions caused by COVID-19 and the low interest rate environment.

•

Net outflows were $1.0 billion, but improved significantly from the prior year quarter,
driven by lower Group Retirement surrenders and two large group acquisitions in the
fourth quarter of 2020, partially offset by lower Fixed and Index Annuity sales as a7

FOR IMMEDIATE RELEASE

result of continued market impacts due to COVID-19 and the lower interest rateenvironment.
•

On October 26, 2020, AIG announced its intention to separate its Life and Retirementbusiness from AIG. No decisions have yet been made regarding the structure of theinitial disposition of up to a 19.9% interest in the Life and Retirement business. In
addition, any separation transaction will be subject to the satisfaction of various
conditions and approvals, including approval by the Board of Directors, receipt of
insurance and other required regulatory approvals, and satisfaction of any applicablerequirements of the Securities and Exchange Commission. No assurance can begiven regarding the form that a separation transaction may take or the specific terms
or timing thereof, or that a separation will in fact occur.

OTHER OPERATIONS
Three Months Ended($ in millions)

Corporate and Other$
Asset Management
Adjusted pre-tax loss before consolidation and eliminations
Consolidation and eliminations
Adjusted pre-tax loss$

December 31,
2020
2019
(519) $
(301)
91
10
(428)
(291)
(292)
(134)
(720) $
(425)

Change(72) %
NM
(47)
(118)
(69) %

Other Operations• Fourth quarter APTL was $720 million, including $292 million of reductions fromconsolidation and eliminations, compared to APTL of $425 million, including $134
million of reductions from consolidation and eliminations, in the prior year quarter. The
increase in APTL in consolidation and eliminations reflects the impact of consolidated
investment entities.
•

8

Before consolidation and eliminations, the increase in APTL was primarily due to lower
net investment income associated with available for sale securities; the sale ofFortitude in the second quarter of 2020, which had APTI of $70 million in the fourth
quarter of 2019; and increased interest expense related to debt issuance in thesecond quarter of 2020.

FOR IMMEDIATE RELEASECONFERENCE CALL
AIG will host a conference call tomorrow, Wednesday, February 17, 2021 at 8:30 a.m. ET toreview these results. The call is open to the public and can be accessed via a live listen-only
webcast in the Investors section of www.aig.com. A replay will be available after the call at thesame location.
###

Additional supplementary financial data is available in the Investors section at www.aig.com.
Certain statements in this press release constitute “forward-looking statements” within themeaning of the Private Securities Litigation Reform Act of 1995. In addition, the conference
call (including the financial results presentation material) and the financial supplement may
include, and officers and representatives of AIG may from time to time make and discuss,projections, goals, assumptions and statements that may constitute “forward-looking
statements”. These projections, goals, assumptions and statements are not historical facts but
instead represent only a belief regarding future events, many of which, by their nature, areinherently uncertain and outside AIG’s control. These projections, goals, assumptions andstatements include statements preceded by, followed by or including words such as “will,”“believe,” “anticipate,” “expect,” “intend,” “plan,” “focused on achieving,” “view,” “target,” “goal”
or “estimate.” These projections, goals, assumptions and statements may relate to future
actions, prospective services or products, future performance or results of current andanticipated services or products, sales efforts, expenses, the outcome of contingencies suchas legal proceedings, anticipated organizational, business or regulatory changes, the effect ofcatastrophes, such as the COVID-19 crisis, and macroeconomic events, anticipateddispositions, monetization and/or acquisitions of businesses or assets, or successful
integration of acquired businesses, management succession and retention plans, exposure torisk, trends in operations and financial results.
It is possible that AIG’s actual results and financial condition will differ, possibly materially,
from the results and financial condition indicated in these projections, goals, assumptions andstatements. Factors that could cause AIG’s actual results to differ, possibly materially, fromthose in the specific projections, goals, assumptions and statements include:
•
•

•
•

9

the adverse impact of COVID-19, including with respect to AIG’s business, financial
condition and results of operations;changes in market and industry conditions, including the significant global
economic downturn, volatility in financial and capital markets, prolonged economic
recovery and disruptions to AIG’s operations driven by COVID-19 and responses
thereto, including new or changed governmental policy and regulatory actions;the occurrence of catastrophic events, both natural and man-made, including
COVID-19, other pandemics, civil unrest and the effects of climate change;
AIG’s ability to successfully dispose of, monetize and/or acquire businesses orassets or successfully integrate acquired businesses, including any separation of
the Life and Retirement business from AIG and the impact any separation may
have on AIG, its businesses, employees, contracts and customers;

FOR IMMEDIATE RELEASE

•
•

•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

AIG’s ability to effectively execute on AIG 200 transformational programs designed
to achieve underwriting excellence, modernization of AIG’s operating infrastructure,enhanced user and customer experiences and unification of AIG;
the impact of potential information technology, cybersecurity or data security
breaches, including as a result of cyber-attacks or security vulnerabilities, thelikelihood of which may increase due to extended remote business operations as aresult of COVID-19;
disruptions in the availability of AIG’s electronic data systems or those of third
parties;availability and affordability of reinsurance;
the effectiveness of our risk management policies and procedures, including withrespect to our business continuity and disaster recovery plans;
nonperformance or defaults by counterparties, including Fortitude Reinsurance
Company Ltd. (Fortitude Re);changes in judgments concerning potential cost-saving opportunities;
concentrations in AIG’s investment portfolios;changes to the valuation of AIG’s investments;changes to our sources of or access to liquidity;
actions by rating agencies with respect to our credit and financial strength ratings;
changes in judgments or assumptions concerning insurance underwriting andinsurance liabilities;
the effectiveness of strategies to recruit and retain key personnel and to implement
effective succession plans;
the requirements, which may change from time to time, of the global regulatory
framework to which AIG is subject;significant legal, regulatory or governmental proceedings;
changes in judgments concerning the recognition of deferred tax assets and the
impairment of goodwill; andsuch other factors discussed in:– Part II, Item 7. Management’s Discussion and Analysis of Financial Condition
and Results of Operations (MD&A) and Part I, Item 1A. Risk Factors in AIG’s
Annual Report on Form 10-K for the year ended December 31, 2020 (which will be
filed with the Securities and Exchange Commission);– Part I, Item 2. MD&A and Part II, Item 1A. Risk Factors of the Quarterly Reporton Form 10-Q for the quarterly period ended September 30, 2020;– Part I, Item 2. MD&A and Part II, Item 1A. Risk Factors of the Quarterly Reporton Form 10-Q for the quarterly period ended June 30, 2020;– Part I, Item 2. MD&A of the Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2020; and– Part I, Item 1A. Risk Factors in AIG’s Annual Report on Form 10-K for the year
ended December 31, 2019.

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 bemade from time to time, whether as a result of new information, future events or otherwise.
#
10

#

#

FOR IMMEDIATE RELEASECOMMENT ON REGULATION G AND NON-GAAP FINANCIAL MEASURES
Throughout this press release, including the financial highlights, AIG presents its financial condition and results ofoperations in the way it believes will be most meaningful and representative of its business results. Some of themeasurements 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 nonGAAP financial measures AIG presents are listed below and may not be comparable to similarly-named measures
reported by other companies. The reconciliations of such measures to the most comparable GAAP measures inaccordance with Regulation G are included within the relevant tables attached to this news release or in the Fourth
Quarter 2020 Financial Supplement available in the Investors section of AIG’s website, www.aig.com.
Book Value per Common Share, Excluding Accumulated Other Comprehensive Income (AOCI) adjusted forthe cumulative unrealized gains and losses related to Fortitude Re’s Funds Withheld Assets and Deferred
Tax Assets (DTA) (Adjusted Book Value per Common Share) is used to show the amount of AIG’s net worth ona per-common share basis after eliminating items that can fluctuate significantly from period to period includingchanges in fair value of AIG’s available for sale securities portfolio, foreign currency translation adjustments andU.S. tax attribute deferred tax assets. This measure also eliminates the asymmetrical impact resulting from changes
in fair value of AIG’s available for sale securities portfolio wherein there is largely no offsetting impact for certain
related insurance liabilities. In addition, AIG adjusts for the cumulative unrealized gains and losses related toFortitude Re’s Funds Withheld Assets since these fair value movements are economically transferred to Fortitude
Re. AIG excludes deferred tax assets representing U.S. tax attributes related to net operating loss carryforwards
and foreign tax credits as they have not yet 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, theportion 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 and losses related to Fortitude Re’s 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 ofDistribution Channel Acquired (VODA), Other Intangible Assets, AOCI adjusted for the cumulative
unrealized gains and losses related to Fortitude Re’s Funds Withheld Assets, and Deferred Tax Assets(DTA) (Adjusted Tangible Book Value per Common Share) is used to provide more accurate measure of therealizable value of shareholder on a per-common share basis. Adjusted Tangible Book Value per Common Share isderived by dividing Total AIG common shareholders’ equity, excluding intangible assets, AOCI adjusted for the
cumulative unrealized gains and losses related to Fortitude Re’s Funds Withheld Assets, and DTA (Adjusted
Tangible Common Shareholders’ Equity), by total common shares outstanding.
AIG Return on Common Equity – Adjusted After-tax Income Excluding AOCI adjusted for the cumulative
unrealized gains and losses related to Fortitude Re’s Funds Withheld Assets and DTA (Adjusted Return on
Common Equity) is used to show the rate of return on common shareholders’ equity. AIG believes this measure isuseful to investors because it eliminates items that can fluctuate significantly from period to period, includingchanges in fair value of AIG’s available for sale securities portfolio, foreign currency translation adjustments andU.S. tax attribute deferred tax assets. This measure also eliminates the asymmetrical impact resulting from changes
in fair value of AIG’s available for sale securities portfolio wherein there is largely no offsetting impact for certain
related insurance liabilities. In addition, AIG adjusts for the cumulative unrealized gains and losses related toFortitude Re’s Funds Withheld Assets since these fair value movements are economically transferred to Fortitude
Re. AIG excludes deferred tax assets representing U.S. tax attributes related to net operating loss carryforwards
and foreign tax credits as they have not yet 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, theportion of the DTA utilized is included in Adjusted Return on Common Equity. Adjusted Return on Common Equity isderived by dividing actual or annualized adjusted after-tax income attributable to AIG common shareholders by
average Adjusted Common Shareholders’ Equity.
AIG Return on Common Equity – Adjusted After-tax Income, Excluding Goodwill, VOBA, VODA and Other
Intangible assets, AOCI adjusted for the cumulative unrealized gains and losses related to Fortitude Re’s
Funds Withheld Assets, and DTA (Adjusted Return on Tangible Common Equity) is used to provide the rate of
return on adjusted tangible common shareholder’s equity, which is a more accurate measure of realizable
shareholder value. AIG excludes Goodwill, VOBA, VODA and Other intangible assets from AIG commonshareholders’ equity to derive tangible common shareholders’ equity and AIG further excludes AOCI adjusted forthe cumulative unrealized gains and losses related to Fortitude Re’s Funds Withheld Assets, and DTA for Adjusted

11

FOR IMMEDIATE RELEASE

Tangible Common Equity. Adjusted Return on Tangible Common Equity is derived by dividing actual or annualized
adjusted after-tax income attributable to AIG common shareholders by average Adjusted Tangible Common
Shareholders’ Equity.
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 Aftertax 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 is derived by dividing actual or annualized
Adjusted After-tax Income by Average Adjusted Segment Common Equity.
Adjusted After-tax Income Attributable to General Insurance and Life and Retirement is derived by subtracting
attributed interest expense, income tax expense and attributed dividends on preferred stock from APTI. Attributed
debt and the related interest expense and dividends on preferred stock are calculated based on AIG’s internal
allocation model. Tax expense or benefit is calculated based on an internal attribution methodology that considers
among other things the taxing jurisdiction in which the segments conduct business, as well as the deductibility of
expenses in those jurisdictions.
Adjusted Revenues exclude Net realized 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 guaranteedliving benefits (included in Net investment income for GAAP purposes). Adjusted revenues is a GAAP measure for
AIG’s segments.
AIG uses the following operating performance measures because AIG believes they enhance the understanding of
the underlying profitability of continuing operations and trends of AIG’s business segments. AIG believes they also
allow for more meaningful comparisons with AIG’s insurance competitors. When AIG uses these measures,
reconciliations to the most comparable GAAP measure are provided on a consolidated basis.

12

FOR IMMEDIATE RELEASE

Adjusted Pre-tax Income (APTI) is derived by excluding the items set forth below from income from continuing
operations before income tax. This definition is consistent across AIG’s segments. These items generally fall into
one or more of the following broad categories: legacy matters having no relevance to AIG’s current businesses oroperating performance; adjustments to enhance transparency to the underlying economics of transactions; andmeasures that AIG believes to be common to the industry. APTI is a GAAP measure for AIG’s segments. Excluded
items include the following:•changes in fair value of securities used to hedge
guaranteed living benefits;•changes in benefit reserves and deferred policy
acquisition costs (DAC), value of businessacquired (VOBA), and sales inducement assets(SIA) related to net realized capital gains andlosses;•income or loss from discontinued operations;•net loss reserve discount benefit (charge);•

pension expense related to a one-time lumpsum payment to former employees;•

income and loss from divested businesses;•changes in the fair value of equity securities;••

non-operating litigation reserves andsettlements;

net investment income on Fortitude Re funds
withheld assets post deconsolidation of FortitudeRe;•following deconsolidation of Fortitude Re, net
realized capital gains and losses on Fortitude Re
funds withheld assets held by AIG in support ofFortitude Re’s reinsurance obligations to AIG(Fortitude Re funds withheld assets);

restructuring and other costs related toinitiatives designed to reduce operating
expenses, improve efficiency and simplify AIG’sorganization;•

the portion of favorable or unfavorable prioryear reserve development for which AIG has
ceded the risk under retroactive reinsurance
agreements and related changes inamortization of the deferred gain;•

integration and transaction costs associatedwith acquiring or divesting businesses;•

losses from the impairment of goodwill; and•non-recurring costs associated with theimplementation of non-ordinary course legal or
regulatory changes or changes to accounting
principles.

••loss (gain) on extinguishment of debt;•

all net realized capital gains and losses except
earned income (periodic settlements and changes
in settlement accruals) on derivative instruments
used for non-qualifying (economic) hedging or for
asset replication. Earned income on sucheconomic hedges is reclassified from net realized
capital 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);

Adjusted After-tax Income attributable to AIG common shareholders (AATI) is derived by excluding the tax
effected APTI adjustments described above, dividends on preferred stock, and the following tax items from net
income attributable to AIG:•••

deferred income tax valuation allowance releases and charges;changes in uncertain tax positions and other tax items related to legacy matters having no relevance to AIG’s
current businesses or operating performance; andnet tax charge related to the enactment of the Tax Cuts and Jobs Act (Tax Act);and by excluding the net realized capital gains (losses) and other charges from noncontrolling interests.
See page 15 for the reconciliation of Net income attributable to AIG to Adjusted After-tax Income Attributable to AIG.
Ratios: AIG, along with most property and casualty insurance companies, uses the loss ratio, the expense ratio andthe combined ratio as measures of underwriting performance. These ratios are relative measurements that
describe, for every $100 of net premiums earned, the amount of losses and loss adjustment expenses (which for
General Insurance excludes net loss reserve discount), and the amount of other underwriting expenses that would
be incurred. A combined ratio of less than 100 indicates underwriting income and a combined ratio of over 100

13

FOR IMMEDIATE RELEASE

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 andcompetition can have an effect on pricing and consequently on profitability as reflected in underwriting income andassociated ratios.
Accident year loss and combined ratios, as adjusted: both the accident year loss and combined ratios, asadjusted, exclude catastrophe losses and related reinstatement premiums, prior year development, net ofpremium 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 and man-madecatastrophe losses, such as terrorism and civil disorders that exceed the $10 million threshold. AIG believes
that as adjusted ratios are meaningful measures of AIG’s underwriting results on an ongoing basis as theyexclude catastrophes and the impact of reserve discounting which are outside of management’s control. AIG
also excludes prior year development to provide transparency related to current accident year results.
Underwriting ratios are computed as follows:a) Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned (NPE)b) Acquisition ratio = Total acquisition expenses ÷ NPEc) General operating expense ratio = General operating expenses ÷ NPEd) Expense ratio = Acquisition ratio + General operating expense ratioe) Combined ratio = Loss ratio + Expense ratiof) Catastrophe losses (CATs) and reinstatement premiums = [Loss and loss adjustment expenses
incurred – (CATs)] ÷ [NPE +/(-) CYRIPs] – Loss ratiog) Accident year loss ratio, as adjusted (AYLR) = [Loss and loss adjustment expenses incurred – CATs –PYD] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes (CYRIPs) +/(-) RIPs related to prioryear catastrophes (PYRIPs) + (Additional) returned premium related to PYD on loss sensitive business((AP)RP) + Adjustment for ceded premiums under reinsurance contracts related to prior accident years]h) Accident year combined ratio, as adjusted = AYLR + Expense ratioi) Prior year development net of (additional) return premium related to PYD on loss sensitive business =[Loss and loss adjustment expenses incurred – CATs – PYD] ÷ [NPE +/(-) CYRIPs +/(-) PYRIPs +(AP)RP] – Loss ratio – CAT ratio
Premiums and deposits: includes direct and assumed amounts received and earned on traditional life insurance
policies, group benefit policies and life-contingent payout annuities, as well as deposits received on universal life,
investment-type annuity contracts, Federal Home Loan Bank (FHLB) funding agreements and mutual funds.
Results from discontinued operations are excluded from all of these measures.

#

#

#

American International Group, Inc. (AIG) is a leading global insurance organization. AIG member companies provide a wide
range of property casualty insurance, life insurance, retirement solutions, and other financial services to customers in morethan 80 countries and jurisdictions. These diverse offerings include products and services that help businesses andindividuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New
York Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance
www.twitter.com/AIGinsurance | LinkedIn: www.linkedin.com/company/aig. These references with additional information
about AIG have been provided as a convenience, and the information contained on such websites is not incorporated byreference into this press release.
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations ofAmerican International Group, Inc. For additional information, please visit our website at www.aig.com. All products andservices are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may
not be available in all countries and jurisdictions, and coverage is subject to underwriting requirements and actual policy
language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty
coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty
funds, and insureds are therefore not protected by such funds.

14

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

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

2019

Noncontrolling
Pre-tax Tax EffectInterests(d)Pre-tax income (loss)/net income (loss), including noncontrollinginterests
Noncontrolling interests
Pre-tax income (loss)/net income (loss) attributable to AIG
Dividends on preferred stock
Net income (loss) attributable to AIG common shareholders
Adjustments:(a)Changes in uncertain tax positions and other tax adjustments(b)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)
Changes in the fair value of equity securities(Gain) loss on extinguishment of debt
Net investment income on Fortitude Re funds withheld assets
Net realized capital (gains) losses on Fortitude Re funds withheld assets
Net realized capital (gains) losses on Fortitude Re funds withheld
embedded derivative(c)
Net realized capital losses
Income from discontinued operations(Income) loss from divested businesses
Non-operating litigation reserves and settlements
Favorable prior year development and related
amortization changes ceded under retroactive reinsurance agreements
Net loss reserve discount charge
Integration and transaction costs associated with acquiring ordivesting businesses
Restructuring and other costs
Non-recurring costs related to regulatory or accounting changes
Noncontrolling interests primarily related to net realized capitalgains (losses) of Fortitude Holdings' standalone results (d)Adjusted pre-tax income/Adjusted after-tax income attributable
to AIG common shareholders15$ (558)
(558)

$

(542)
(542)

$

(37)
(37)

After-tax$

Pre-tax

(16)
(37)
(53)
7
(60)

$ 1,036
1,036

Tax Effect

$

216
216

Noncontrolling
Interests(d)

$

60
60

After-tax

$

869
60
929
7
922

-

336
157

-

(336)
(157)

-

(7)
3

-

7
(3)

(17)

(4)

-

(13)

(11)

(2)

-

(9)

(217)
(216)
(3)
(479)
(335)

(46)
(45)
(1)
(101)
(71)

-

(171)
(171)
(2)
(378)
(264)

(95)
(152)
19
-

(20)
(32)
4
-

-

(75)
(120)
15
-

1,152
1,472
(127)
(16)

242
331
(106)
(3)

-

910
1,141
(21)
(13)

313
71
(8)

55
8
(1)

-

258
(49)
63
(7)

(150)
475

(31)
100

-

(119)
375

(56)
35

(11)
7

-

(45)
28

5
111
19

1
23
4

-

4
88
15

8
44
7

2
9
1

-

6
35
6

-

-

(1)

(1)

-

-

(109)

(109)

827

$ 1,211$ 1,116

$

244

$

(38)

$

$

232

$

(49)

$

923

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

Reconciliations of Adjusted Pre-tax and After-tax Income (continued)
Twelve Months Ended December 31,
2020

2019

Noncontrolling(d)Pre-tax Tax EffectInterests
Pre-tax income (loss)/net income (loss), including noncontrollinginterests
Noncontrolling interests
Pre-tax income (loss)/net income (loss) attributable to AIG
Dividends on preferred stock
Net income (loss) attributable to AIG common shareholders
Adjustments:
Changes in uncertain tax positions and other tax adjustments (a)(b)
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)
Changes in the fair value of equity securities
Loss on extinguishment of debt
Net investment income on Fortitude Re funds withheld assets (e)Net realized capital (gains) losses on Fortitude Re funds withheld assets (e)Net realized capital (gains) losses on Fortitude Re funds withheld(e)embedded derivative
Net realized capital (gains) losses(c)Income from discontinued operations
Loss from divested businesses
Non-operating litigation reserves and settlements
Favorable prior year development and related
amortization changes ceded under retroactive reinsurance agreements
Net loss reserve discount charge
Integration and transaction costs associated with acquiring ordivesting businesses
Restructuring and other costs
Non-recurring costs related to regulatory or accounting changes
Noncontrolling interests primarily related to net realized capitalgains (losses) of Fortitude Holdings' standalone results (d)Adjusted pre-tax income/Adjusted after-tax income attributable
to AIG common shareholders

Pre-tax

Tax Effect

(115)
(115)

$ (5,829)(115)(5,944)29(5,973)$ 5,287
5,287$ 1,166
1,166$ (7,293)(7,293)$ (1,460)(1,460)

-

132
65

-

(132)
(65)

-

(41)

(9)

-

(32)

(12)
(200)
12
(1,053)
(463)

(3)
(42)
2
(221)
(98)

-

2,645
97
8,525
(21)

555
22
1,610
(4)

(221)
516

Noncontrolling(d)Interests$ 4,169
(821)
3,348
22
3,326

(30)
43

-

30
(43)

(194)

(40)

-

(154)

(9)
(158)
10
(832)
(365)

(56)
(158)
32
-

(12)
(33)
7
-

-

(44)
(125)
25
-

-

2,090
75
(4)
6,915
(17)

(456)
75
(2)

(99)
9
-

-

(357)
(48)
66
(2)

(46)
109

-

(175)
407

(267)
955

(56)
201

-

(211)
754

12
435
65

3
91
14

-

9
344
51

24
218
12

5
46
2

-

19
172
10

-

-

62

62

-

-

660

660

(53)

$ 2,201$ 5,470$ 1,209(161)$ 4,078

$

720

$

$

After-tax

(821)
(821)

$ 3,003$

After-tax$(a) Includes the tax audit resolution related to the IRS audit settlement for tax years 1991-2006 and the write-down of net operating loss deferred tax assets in certain foreign jurisdictions, which is offset
by valuation allowance release.
(b) Twelve months ended December 31, 2020 includes valuation allowance established against a portion of foreign tax credit carryforwards of AIG’s U.S. federal consolidated income tax group, as well as
net valuation allowance release in certain foreign jurisdictions for the three- and twelve-months ended December 31, 2020.
(c) Includes all net realized capital gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging
or for asset replication and net realized gains and losses on Fortitude Re funds withheld assets.
(d) Prior to June 2, 2020, noncontrolling interests was primarily due to the 19.9 percent investment in Fortitude Group Holdi ngs, LLC (Fortitude Holdings) by an affiliate of The Carlyle Group L.P. (Carlyle),
which occurred in the fourth quarter of 2018. Carlyle was allocated 19.9 percent of Fortitude Holdings’ standalone financial results through the June 2, 2020 closing date of the Majority Interest Fortitude
Sale. Fortitude Holdings’ results were mostly eliminated in AIG’s consolidated income from continuing operations given that its results arose from intercompany transactions. Noncontrolling interests wascalculated based on the standalone financial results of Fortitude Holdings. The most significant component of Fortitude Holdings’ standalone results was the change in fair value of the embedded
derivatives which changes with movements in interest rates and credit spreads, and which was recorded in net realized capital gains and losses of Fortitude Holdings. In accordance with AIG's adjusted
after-tax income definition, realized capital gains and losses are excluded from noncontrolling interests. Subsequent to the Majori ty Interest Fortitude Sale, AIG owns 3.5 percent of Fortitude Holdings andno longer consolidates Fortitude Holdings in its financial statements as of such date. The minority interest in Fortitude Holdings is carried at cost within AIG’s Other invested assets, which was $100 million
as of December 31, 2020.
(e) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.

Summary of Key Financial Metrics
Income (loss) per common share:
Basic
Income (loss) from continuing operations
Income from discontinued operations
Net income (loss) attributable to AIG common shareholders
DilutedIncome (loss) from continuing operations
Income from discontinued operations
Net income (loss) attributable to AIG common shareholders
Adjusted after-tax income attributable to AIG commonshareholders per diluted share (a)Weighted average shares outstanding:
Basic
Diluted (a)Three Months Ended December 31,
2020
2019
% Inc. (Dec.)

Twelve Months Ended December 31,
2020
2019
% Inc. (Dec.)$(0.07)(0.07)$$$(0.07)(0.07)

$

0.94

$
$

868.4
868.4

0.99
0.06
1.05

NM %
NM
NM

$

NM
NM
NM

$

$

0.97
0.06
1.03

$

1.03

(8.7) %

$

878.2
896.4

(6.88)(6.88)$$$(6.88)(6.88)

$

2.52

$

869.3
869.3

3.74
0.05
3.79

NM %
NM
NM

$

3.69
0.05
3.74

NM
NM
NM

$

4.58

(45.0)%

$

876.8
889.5

(a) For the three- and twelve-month periods ended December 31, 2020, because we reported net losses attributable to AIG common shareholders, all common stock
equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts. However, because we reported adjusted after-tax
income attributable to AIG common shareholders, the calculation of adjusted after-tax income per diluted share attributable to AIG common shareholders includes 8,309,281
and 5,401,957 dilutive shares for the three- and twelve-month periods ended December 31, 2020, respectively.

16

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

Reconciliation of Book Value per Common Share
As of period end:
Total AIG shareholders' equity
Less: Preferred equity
Total AIG common shareholders' equity (a)Less: Accumulated other comprehensive income (AOCI)
Add: Cumulative unrealized gains and losses related to Fortitude Re’s Funds
Withheld Assets
Less: Deferred tax assets (DTA)*
Total adjusted AIG common shareholders' equity (b)Less: Intangible assets:
Goodwill
Value of business acquired
Value of distribution channel acquired
Other intangibles
Total intangible assets
Total adjusted tangible common shareholders' equity (c)Total common shares outstanding (d)As of period end:
Book value per common share (a÷d)
Adjusted book value per common share (b÷d)
Adjusted tangible book value per common share (c÷d)

December 31, 2020$
66,362
485
65,877
13,511

September 30, 2020$
64,108
485
63,623
10,978December 31, 2019$
65,675
485
65,190
4,982

4,657
7,907
49,116

4,392
8,123
48,914

8,977
51,231

$

$

4,074
126
497
319
5,016
44,100861.6$

December 31,
2020
$
76.46
57.01
51.18

4,026
122
507
322
4,977
43,937861.4$

September 30
2020
$
73.86
56.78
51.01

$

% Inc.
(Dec.)
3.5 %
0.4
0.3

4,038
317
536
333
5,224
46,007870.0$

December 31,
2019
$
74.93
58.89
52.88

% Inc.
(Dec.)
2.0 %
(3.2)
(3.2)

Reconciliation of Return On Common Equity

Actual or Annualized net income attributable to AIG common shareholders (e)Actual or Annualized adjusted after-tax income attributable to AIG common shareholders (f)Average AIG common shareholders' equity (g)Less: Average AOCI
Add: Average cumulative unrealized gains and losses related to Fortitude Re’s Funds Withheld Assets
Less: Average DTA*
Average adjusted common shareholders' equity (h)Less: Average intangible assets
Average adjusted tangible common shareholders' equity (i)ROCE (e÷g)
Adjusted return on common equity (f÷h)
Adjusted return on tangible common equity (f÷i)

Three Months Ended
Twelve Months Ended
December 31,
December 31,
2020
2019
2020
2019
$
(240) $
3,688$
(5,973) $
3,326
$
3,308
$
3,692
$
2,201
$
4,078
$ 64,750$ 65,154$ 63,225$ 62,205
12,245
5,299
7,529
3,261
4,525
2,653
8,015
9,185
8,437
9,605
49,01550,67049,91249,339
4,997
5,258
5,060
5,351
$ 44,018$ 45,412$ 44,852$ 43,988(0.4) %
5.7 %(9.4) %
5.3 %
6.7 %
7.3 %
4.4 %
8.3 %
7.5 %
8.1 %
4.9 %
9.3 %

* 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

Net investment income per Consolidated Statements of Operations
Changes in fair value of securities used to hedge guaranteed living benefits
Changes in the fair value of equity securities
Net investment income on Fortitude Re funds withheld assets
Net realized capital gains (losses) related to economic hedges and otherTotal Net investment income - APTI Basis
Less: Impact of Fortitude Re prior to deconsolidation
Total Net investment income - APTI Basis, excluding the impact of Fortitude
Re for all periods, including periods prior to deconsolidation

17

$

$

$

Three Months Ended
December 31,
2020
2019
3,957
$
3,587
(14)
(16)
(216)
(152)
(479)
(22)
43
3,226
$
3,462
(498)
3,226

$

2,964

Twelve Months Ended
December 31,
2020
2019
$ 13,631$ 14,619
(56)
(229)
(200)
(158)
(1,053)(1)
158$ 12,321$ 14,390(499)(1,900)$11,822$

12,490American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per common share amounts)
Reconciliations of Accident Year Combined Ratio, as Adjusted
Three Months Ended
December 31,
2020
2019
Total General Insurance
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustments for ceded premium under reinsurance contracts andother
Accident year combined ratio, as adjusted

102.8
(9.0)
(0.9)
92.9

99.8
(6.5)
2.2
0.3
95.8

North America
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustments for ceded premium under reinsurance contracts andother
Accident year combined ratio, as adjusted

114.9(18.0)
(2.2)
94.7

103.2
(10.4)
2.6
0.7
96.1

North America - Commercial Lines
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustments for ceded premium under reinsurance contracts andother
Accident year combined ratio, as adjusted

112.4(17.4)
(1.4)
93.6

108.8
(8.7)
(3.2)
0.7
97.6

North America - Personal Insurance
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustment for ceded premium under reinsurance contract
Accident year combined ratio, as adjusted

133.2(22.6)
(8.0)
102.6

88.6
(14.8)
17.8
0.6
92.2

International
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustment for ceded premium under reinsurance contract
Accident year combined ratio, as adjusted

93.6
(2.1)
0.2
91.7

96.9
(3.2)
1.9
95.6

International - Commercial Lines
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development
Adjustment for ceded premium under reinsurance contract
Accident year combined ratio, as adjusted

92.1
(4.0)
1.1
89.2

96.9
(3.0)
0.2
94.1

International - Personal Insurance
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development
Accident year combined ratio, as adjusted

95.0
(0.9)
94.1

96.8
(3.3)
3.5
97.0

18

Twelve Months Ended
December 31,
2020
2019
2018
104.3
(10.3)
0.1
94.1

99.6
(4.8)
1.1
0.1
96.0

111.4
(10.5)
(1.5)
0.3
99.7

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

Ending adjusted segment common equity
Average adjusted segment common equity
Return on adjusted segment common equity

$
$

$

809
144
665
182
483
3
480

$

25,54025,582
7.5 %

$
$

$

778
149
629
165
464
3
461
25,62325,697
7.2 %Reconciliation of Life and Retirement Return on Adjusted Segment Common Equity
Three Months Ended
December 31,
2020
2019
Adjusted pre-tax income
Interest expense on attributed financial debt
Adjusted pre-tax income including attributed interest expense
Income tax expense
Adjusted after-tax income
Dividends declared on preferred stock
Adjusted after-tax income attributable to common shareholders$

Ending adjusted segment common equity
Average adjusted segment common equity
Return on adjusted segment common equity

$
$

19

$

1,027
67
960
186
774
2
772

$

18,436
18,78616.4 %

$
$

$

858
66
792
159
633
2
631
17,494
17,34414.6 %

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per common share amounts)
Reconciliations of Premiums and Deposits
Three Months Ended
December 31,
2020
2019
Individual Retirement:
Premiums
Deposits
Other
Total premiums and deposits
Group Retirement:
Premiums
Deposits
Other
Total premiums and depositsLife Insurance:
Premiums
Deposits
Other
Total premiums and deposits
Institutional Markets:
Premiums
Deposits
Other
Total premiums and deposits
Total Life and Retirement:
Premiums
Deposits
Other
Total premiums and deposits

20

$

$
$

$
$

$
$

$
$

$

37
2,720
1
2,758

$

5
2,194
2,199

$

491
430
235
1,156

$

417
864
6
1,287

$

950
6,208
242
7,400

$

$

$

$

$

$

39
3,121
(4)
3,156
2
2,310
2,312
450
438
218
1,106
503
42
6
551
994
5,911
220
7,125