FOR IMMEDIATE RELEASE

Press Releasewww.aig.com

Contacts:
Quentin McMillan (Investors): quentin.mcmillan@aig.com
Claire Talcott (Media): claire.talcott@aig.com

AIG Reports First Quarter 2023 Results
 General Insurance delivered underwriting income of $502 million, representing thestrongest first quarter underwriting results; Commercial Lines net premiums written(NPW) grew 6% year-over-year or 11% on a constant dollar basis and adjusted for theInternational lag elimination*
 General Insurance combined ratio of 91.9% improved 1.0 point from the prior year quarterand adjusted accident year combined ratio* (AYCR) of 88.7% improved 0.8 point from theprior year quarter, marking the fifth consecutive year of margin improvement
 Life and Retirement reported a strong quarter with continued sales momentum and a 60basis point improvement in base investment yield year-over-year Net income per diluted common share was $0.03, compared to $5.04 in the prior year
quarter, and adjusted after-tax income attributable to AIG common shareholders* (AATI)
per diluted common share was $1.63, an increase of 9% compared to $1.49 in the prioryear quarter
 AIG repurchased $603 million of common stock in the first quarter and paid $241 millionof dividends
 The AIG Board of Directors declared a cash dividend of $0.36 per share on AIG common
stock, a 12.5% increase from prior quarterly dividends, commencing with the second
quarter dividend, payable on June 30, 2023
FIRST QUARTER 2023 NOTEWORTHY ITEMS• General Insurance adjusted pre-tax income (APTI) increased $37 million to $1.2 billion from theprior year quarter as a result of better underwriting results with 1.0 point of combined ratio
improvement, and higher investment income on fixed maturity securities and loans, partially offset
by lower alternative investment income.
• Life and Retirement APTI decreased $48 million to $886 million from the prior year quarter, due tolower alternative investment income and lower fee income, partially offset by higher base portfolio
income and improved mortality experience.

• Net income attributable to AIG common shareholders was $23 million, or $0.03 per diluted
common share, compared to $4.2 billion, or $5.04 per diluted common share, in the prior year
quarter.
• AATI was $1.21 billion, or $1.63 per diluted common share, compared to $1.49 per diluted
common share, in the prior year quarter, primarily driven by a 10% reduction in weighted average
diluted shares outstanding as well as better underwriting results and higher net investment
income.
• Return on common equity (ROCE) and adjusted ROCE* were 0.2% and 8.7%, respectively, on anannualized basis. Adjusted ROCE for General Insurance was 11.6% and for Life and Retirement
10.7%, both on an annualized basis.
• As of March 31, 2023, book value per common share was $58.87, an increase of 7% compared
to $55.15 at December 31, 2022. Adjusted book value per common share* was $75.87, in linewith $75.90 at December 31, 2022.
* 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, May 4, 2023 – American International Group, Inc. (NYSE: AIG) today reported financial
results for the first quarter ended March 31, 2023.
AIG Chairman & Chief Executive Officer Peter Zaffino said: “AIG successfully navigated a complex
environment to produce excellent first quarter results that demonstrate our ability to deliver highquality outcomes for stakeholders, grow our business, manage volatility, and improve profitability.
We also continue to execute on achieving underwriting and operational excellence, and capital andinvestment management strategies.
“General Insurance net premiums written increased 5% year-over-year. On a constant dollar basis
and adjusted for the International lag elimination, net premiums written increased 10%, driven bystrong growth in North America Commercial led by Validus Re and Lexington, and International
Commercial, led by Global Specialty. North America Commercial rate, excluding Workers’
Compensation, re-accelerated with an 8% increase in the quarter, and International Commercial rate
also increased 8%, in each case exceeding loss cost trends.
“Improvement in our combined ratios and underwriting profitability continued. The combined ratio
was 91.9% and the accident year combined ratio, ex-CAT, was 88.7%, a 100-basis point and 80basis point improvement, respectively, from the prior year quarter. In Global Commercial, thecombined ratio was 89.2%, a 180-basis point improvement from the prior year quarter and theaccident year combined ratio, ex-CAT, was 84.9%, a 110-basis point improvement from the prioryear quarter. Underwriting income was over $500 million, representing the strongest first quarter
underwriting results AIG has achieved. These significant accomplishments demonstrate that our
strategy in General Insurance of focusing on underwriting excellence and volatility management
enables sustainable growth and underwriting profitability over the long-term.
“Our Life and Retirement business (known as Corebridge Financial, Inc.) had a very strong quarterreflecting its market-leading position and promising future as a standalone company. Premiums grew
159% to $2.2 billion. Premiums and deposits* grew 44% to $10.4 billion supported by record sales in
Fixed Annuity and Fixed Index Annuity products. Base investment yield grew by 60 basis points
year-over-year, driven by higher reinvestment yield. Individual Retirement net flows in the General
Account were positive $1.3 billion in the quarter.
“Net investment income was $3.5 billion in the first quarter and $3.1 billion on an APTI basis. This
reflects our active management of the portfolio over the last several quarters to improve the overall
quality of investments and reduce volatility. We saw significant uplift from new money investments aswell as higher resets on floating rate securities.
“We continued to execute on our capital management strategy, maintaining strong insurance
subsidiary capital and parent liquidity. During the first quarter, we returned $844 million toshareholders through $603 million of AIG common stock repurchases and $241 million of AIG
dividends.
“In addition, the AIG Board of Directors approved a 12.5% increase in our quarterly common stock
dividend to $0.36 per share starting in the second quarter of 2023, another milestone that reflects
the confidence we have in the future earnings power of AIG.
“The environment we operate in is continually shifting and remains volatile and unpredictable. I amvery proud of how our colleagues remain focused on and dedicated to making significant progresson our journey to become a top performing company, despite challenging external factors. Our firstquarter results demonstrate the resilience of AIG and our steadfast commitment to long-term value
creation for our shareholders and other stakeholders.”2FOR IMMEDIATE RELEASE

For the first quarter of 2023, pre-tax loss from continuing operations was $231 million, compared to
pre-tax income of $5.7 billion in the prior year quarter. Net income attributable to AIG commonshareholders was $23 million, or $0.03 per diluted common share, compared to $4.2 billion, or $5.04
per diluted common share, in the prior year quarter. The decline was mostly due to net realized
losses on Fortitude Re funds withheld embedded derivative as well as net realized losses excluding
Fortitude Re funds withheld assets and embedded derivative, and lower alternative investment
income, partially offset by higher General Insurance underwriting income and investment income on
the fixed maturity securities and loan portfolios. These pre-tax movements were partially offset by alower income tax expense as well as a higher net loss attributable to noncontrolling interest due tononcontrolling interest losses on Corebridge in 2023 compared to gains in 2022 and the 12.4%
public floating interest from the initial public offering (IPO).
AATI was $1.21 billion, or $1.63 per diluted common share, for the first quarter of 2023 compared to$1.23 billion, or $1.49 per diluted common share, in the prior year quarter. The decrease in AATI was
driven by lower alternative investment income, partially offset by higher General Insurance
underwriting results and net investment income on the fixed maturity securities and loan portfolios.
Total consolidated net investment income for the first quarter of 2023 was $3.5 billion, an increase of
9% from $3.2 billion in the prior year quarter, benefiting from $618 million of improvement in interestand dividends as a result of higher yields on the fixed maturity securities and loan portfolios, partially
offset by lower alternative investment income. Total net investment income on an APTI basis* was$3.1 billion, an increase of $77 million from the prior year quarter.
As of March 31, 2023, AIG’s total invested assets, excluding Fortitude Re funds withheld assets, was$285.2 billion. The Commercial Mortgage Loan (CML) balance was 12% of total invested assets withweighted average loan-to-value ratio of 59% and weighted average debt service coverage ratio of
1.9x. The largest property type of CML portfolio is multifamily housing. Office loans account for 3% of
total invested assets with concentration in major metropolitan areas, and 79% are Class A
properties.
On January 1, 2023, AIG adopted the new accounting standard for Targeted Improvements to the
Accounting for Long-Duration Contracts (the standard or LDTI), with a transition date of January 1,
2021. AIG adopted the standard using the modified retrospective transition method relating toliabilities for traditional and limited payment contracts and deferred policy acquisition costs. AIG also
adopted the standard in relation to market risk benefits on a full retrospective basis. The previously
reported 2021 and 2022 financial results have been recast for LDTI related changes. This resulted ina cumulative increase in AIG common shareholders' equity of $1.0 billion from $39.5 billion, as
originally reported, to $40.5 billion at December 31, 2022, and an increase in AIG adjusted commonshareholders’ equity* of $1.5 billion or 2.8% from $54.2 billion to $55.7 billion, as recast.
Book value per common share was $58.87 as of March 31, 2023, an increase of 7% from December
31, 2022 and a decrease of 16% from March 31, 2022. The year-over-year decrease was driven by
the increase in accumulated other comprehensive loss (AOCI) as a result of higher interest rates.
Adjusted book value per common share was $75.87, in line with December 31, 2022 and anincrease of 4% from March 31, 2022, primarily due to share repurchases in the past twelve months.
Adjusted tangible book value per common share* was $69.37, a decrease of 0.1% from December
31, 2022 and an increase of 4% from March 31, 2022.
For the first quarter of 2023, AIG repurchased $603 million of common stock or approximately 11
million shares, paid $241 million of common and preferred dividends, issued $750 million of seniorunsecured notes, and ended the quarter with parent liquidity of $3.9 billion. AIG’s ratio of total debt
and preferred stock to total capital at March 31, 2023 was 32.8%, down from 33.6% at December
31, 2022, primarily driven by AOCI mark-to-market adjustments for certain investment portfolios,

3FOR IMMEDIATE RELEASE

partially offset by the March debt issuance. Excluding AOCI, the total debt and preferred stock tototal capital ratio was 26.3% at March 31, 2023.
The AIG Board of Directors declared a quarterly cash dividend on AIG common stock of $0.36 pershare, a 12.5% increase from the prior dividend paid in March 2023 of $0.32 per share. The dividend
is payable on June 30, 2023 to stockholders of record at the close of business on June 16, 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 $0.365625
per depositary share. The dividend is payable on June 15, 2023 to holders of record at the close ofbusiness on May 31, 2023.
FINANCIAL SUMMARY($ in millions, except per common share amounts)

Three Months Ended
March 31,2022
2023
4,166 $
23
5.04 $
0.03

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

Adjusted pre-tax income (loss)
General InsuranceLife and Retirement
Other Operations$

1,724 $
1,211
934
(421)

1,643
1,248
886
(491)

Net investment income
Net investment income, APTI basis

$

3,237
2,998

$

3,533
3,075

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

$

1,228

$

1,211

$

1.49

$

1.63
744.1

Weighted average common shares outstanding - diluted (in millions)

826.0

Return on common equity
Adjusted return on common equity

27.4 %
8.5 %

0.2
8.7

$
$

58.87
75.87

Book value per common share
Adjusted book value per common share
Common shares outstanding (in millions)

4

$
$

69.95
72.62
800.2

727.6

FOR IMMEDIATE RELEASE

GENERAL INSURANCE($ in millions)Three Months Ended March 31,
2022
2023
11,512$
12,028ChangeGross premiums written$

Net premiums written
North America
North America Commercial Lines
North America Personal Insurance
International
International Commercial Lines
International Personal Insurance

$

6,633
3,151
2,952
199
3,482
2,085
1,397

$

6,965
3,680
3,367
313
3,285
1,996
1,289

5 %
17
14
57
(6)
(4)
(8)

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

$

446
256
267
(11)
190
125
65

$

502
299
331
(32)
203
155
48

13 %
17
24
(191)
7
24
(26)

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

$
$

765
$
1,211
$
12.3 %

746
1,248
11.6 %(2) %3 %(0.7) pts

90.8
88.8
102.6
94.5
93.6
95.7
92.9

90.0
87.1
107.9
93.8
91.9
96.4
91.9

(0.8) pts
(1.7)
5.3
(0.7)
(1.7)
0.7
(1.0)

60.9

59.9

(1.0) pts

(4.5)

(4.2)

0.3

1.1
57.5
32.0
89.5

1.0
56.7
32.0
88.7

(0.1)
(0.8)
—
(0.8)

90.6
88.1
105.2
88.6
83.5
95.2

88.7
85.7
107.6
88.7
83.7
95.9

(1.9) pts
(2.4)
2.4
0.1
0.2
0.7

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, net of reinsurance andprior year premiums
GI Accident year loss ratio, as adjusted
GI Expense ratio
GI Accident year combined ratio, as adjusted
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

54 %

FOR IMMEDIATE RELEASE

General Insurance•

First quarter 2023 NPW of $7.0 billion increased 5% from the prior year quarter, which had
International reported on a one month lag and included the impact of a weaker US dollar
compared to first quarter 2022. On a constant dollar basis and adjusted for the lag elimination,
NPW increased 10%, driven by solid North America Commercial Lines growth of 15% attributed
to strong new business levels and higher retention on renewals as well as International
Commercial Lines growth of 6%. Commercial Lines NPW growth benefited from higher renewal
premium rates in most lines, particularly in Validus Re and Lexington, offset in part by a decline
in Financial Lines due to lower premium rates and reduced capital markets activities. Personal
Insurance NPW grew 6% on a constant dollar basis and adjusted for the lag elimination,
primarily driven by lower quota share cession in North America Personal Lines, partially offset
by the non-renewal of a contract in International Accident & Health.

•First quarter 2023 APTI increased by $37 million to $1.2 billion from the prior year quarter due
to higher underwriting income, which increased by $56 million to $502 million. Included in thisresult was $264 million of total catastrophe-related charges, representing 4.2 loss ratio points,of which, $126 million was due to two storms in New Zealand, compared to $288 million, or 4.5
loss ratio points, in the prior year quarter. Total catastrophe-related charges were $116 million in
North America and $148 million in International. First quarter 2023 also included favorable prioryear development (PYD), net of reinsurance, of $68 million compared to favorable PYD of $93
million in the prior year quarter.

•

The combined ratio improved 1.0 point from the prior year quarter to 91.9%. The AYCR
improved 0.8 point from the prior year quarter to 88.7%, driven by a 0.8 point decrease in theaccident year loss ratio, as adjusted* to 56.7%, reflecting continued earned-in rate exceeding
loss cost trends in Commercial Lines. The expense ratio was flat at 32.0%.

•

Global Commercial Lines underwriting results continued to improve. The combined ratios forNorth America Commercial Lines and International Commercial Lines each improved 1.7 points
to 87.1% and 91.9%, respectively, compared to the prior year quarter. The AYCR for North
America Commercial Lines improved 2.4 points to 85.7%, and for International Commercial
Lines increased by 0.2 point to 83.7%, driven by higher assumed allocation expenses,
compared to the prior year quarter.

•

Global Personal Insurance underwriting income was lower, reflecting a mix shift in premiums
and lower premiums earned compared to the prior year quarter. The North America Personal
Insurance combined ratio of 107.9% and AYCR of 107.6%, increased 5.3 points and 2.4 points,
respectively, compared to the prior year quarter, driven by higher catastrophe losses fromFebruary U.S. winter storms and a higher acquisition ratio due to changes in business mix andreinsurance structure. The International Personal Insurance combined ratio of 96.4% and AYCR
of 95.9%, each had an increase of 0.7 point, from the prior year quarter, due to changes inbusiness mix and an increase in general operating expense ratio attributable to the decline inpremiums earned.
•

6

General Insurance return on adjusted segment common equity for the first quarter was 11.6%
on an annualized basis, compared with 12.3% in the prior year quarter.

FOR IMMEDIATE RELEASE

LIFE AND RETIREMENT($ in millions, except as indicated)

Three Months Ended
March 31,
2022
2023
934
$
886
466
533
241
187
113
82
114
84

ChangeAdjusted pre-tax income (loss)
Individual Retirement
Group Retirement
Life InsuranceInstitutional Markets

$

(5) %
14
(22)
(27)
(26)

Premiums and fees
Individual Retirement
Group Retirement
Life InsuranceInstitutional Markets

$

1,579
241
122
931
285

$

2,899
252
106
917
1,624

84 %
5
(13)
(2)
470

Premiums and deposits
Individual Retirement
Group Retirement
Life InsuranceInstitutional Markets

$

7,265
3,881
1,888
1,169
327

$

10,448
4,883
2,246
1,156
2,163

44 %
26
19
(1)
NM

Net flows
Individual Retirement
Group Retirement

$

55
874
(819)

$

(156)
663
(819)

NM %
(24)
—

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

$

2,129
$
12.2 %

2,277
10.7 %

7 %(1.5) pts

Life and Retirement•

Life and Retirement reported APTI of $886 million for the first quarter of 2023, down 5% from$934 million in the prior year quarter. The decline was primarily driven by lower alternative
investment returns and fee income, partially offset by higher base investment portfolio income
and improved mortality experience. Base net investment yield increased by 60 basis points yearover-year.

•

Premiums increased to $2.2 billion from $0.8 billion and premiums and deposits* increased 44%
to $10.4 billion from $7.3 billion, from the prior year quarter. This quarter benefited from strong
sales in Fixed Annuities and Fixed Index Annuities as well as higher Group Retirement planacquisitions and higher volume of transactional businesses with $1.5 billion of pension risk
transfer activity and approximately $500 million of guaranteed investment contracts. Individual
Retirement General Account net flows were $1.3 billion, up $542 million from last quarter.

•

The capital position of the business remains healthy with a Risk-Based Capital (RBC) ratio in the
410%-420% range, above our target levels.

•

Life and Retirement return on adjusted segment common equity for the first quarter was 10.7%
on an annualized basis, compared with 12.2% in the prior year quarter.

7

FOR IMMEDIATE RELEASEOTHER OPERATIONS($ in millions)

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

Three Months Ended
March 31,2022
2023(547) $
(435)
259
1

Change
20 %
(100)

(434)
(57)
(491)

(51)
57
(17) %(288)(133)(421) $$

Other Operations•

Other Operations adjusted pre-tax loss (APTL) of $491 million increased $70 million largely due
to the impact of Consolidated Investment Entities (CIEs) on net investment income andconsolidation and eliminations.

•

Before consolidation and eliminations, APTL deteriorated by $146 million, due to a decrease inalternative investment income and higher interest expense from operating debt primarily driven
by Asset Management Group, partially offset by higher income from fixed maturity securities andshort term investment as a result of yield uplift on parent liquidity funds and lower corporate
general operating expenses.

•

Corporate general operating expenses decreased $27 million from the prior year quarter, despite
an additional $29 million of expenses related to establishing Corebridge as a standalonecompany. Excluding this additional expense, corporate general operating expenses decreased$56 million year-over-year.

•

Consolidation and elimination activities decreased to $(57) million, driven by lower income from
CIEs which are allocated to the operating companies and eliminated in Other Operations.

CONFERENCE CALL
AIG will host a conference call tomorrow, Friday, May 5, 2023 at 8:30 a.m. ET to review theseresults. The call is open to the public and can be accessed via a live listen-only webcast in theInvestors 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.

8

FOR IMMEDIATE RELEASE

Certain statements in this press release and other publicly available documents may include, andmembers of AIG management may from time to time make and discuss, statements which, to theextent 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 bevalid 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, anticipatedorganizational, business or regulatory changes, such as the separation of the Life and Retirementbusiness from AIG, the effect of catastrophic events, both natural and man-made, andmacroeconomic and/or geopolitical events, anticipated dispositions, monetization and/or acquisitionsof 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 statementsthat 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 andother forward-looking statements include, without limitation:
•

•
•

•
•
•
•
•
•
•
•
•
•
•

9

the impact of adverse developments affecting economic conditions in the markets inwhich AIG and its businesses operate in the U.S. and globally, including adverse
developments related to financial market conditions, macroeconomic trends, recent stressin the banking sector, fluctuations in interest rates and foreign currency exchange rates,
inflationary pressures, pressures on the commercial real estate market, an economic
slowdown or recession, uncertainty regarding the U.S. federal government’s debt limit,
and geopolitical events or conflicts, including the conflict between Russia and Ukraine;
occurrence of catastrophic events, both natural and man-made, including the effects ofclimate change, geopolitical events and conflicts and civil unrest;
disruptions in the availability or accessibility of AIG's or a third party’s information
technology systems, including hardware and software, infrastructure or networks, and theinability to safeguard the confidentiality and integrity of customer, employee or company
data, due to cyberattacks, data security breaches, or infrastructure vulnerabilities;
AIG's ability to realize expected strategic, financial, operational or other benefits from theseparation of Corebridge as well as AIG’s equity market exposure to Corebridge;
the effectiveness of strategies to retain and recruit key personnel and to implement
effective succession plans;
AIG’s ability to successfully dispose of, monetize and/or acquire businesses or assets or
successfully integrate acquired businesses;
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;availability of adequate reinsurance or access to reinsurance on acceptable terms;
concentrations of AIG’s insurance, reinsurance and other risk exposures;
nonperformance or defaults by counterparties, including Fortitude Reinsurance Company
Ltd. (Fortitude Re);changes in judgments concerning potential cost-saving opportunities;

FOR IMMEDIATE RELEASE

•
•
•
•
•
•
•
•
•
•
•
•
•
•
•

AIG's ability to effectively implement changes under AIG 200, including the ability torealize cost savings;
AIG's ability to adequately assess risk and estimate related losses as well as theeffectiveness of AIG’s enterprise risk management policies and procedures, including withrespect to business continuity and disaster recovery plans;difficulty in marketing and distributing products through current and future distribution
channels;
actions by rating agencies with respect to AIG’s credit and financial strength ratings aswell as those of its businesses and subsidiaries;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;
the effects of sanctions, including those related to the conflict between Russia andUkraine and the failure to comply with those sanctions;the effects of changes in laws and regulations, including those relating to the regulation of
insurance, in the U.S. and other countries 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 sustainability targets and standards, and AIG’s
ability to address evolving stakeholder expectations with respect to environmental, socialand governance matters; andsuch other factors discussed in Part I, Item 2. Management’s Discussion and Analysis ofFinancial Condition and Results of Operations (MD&A) in AIG’s Quarterly Report on Form
10-Q for the quarterly period ended March 31, 2023 (which will be filed with the Securities
and Exchange Commission (SEC)) and Part I, Item 1A. Risk Factors and Part II, Item 7.
MD&A in AIG Annual Report on Form 10-K for the year ended December 31, 2022.

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 factorsthat may cause actual results to differ materially from those expressed or implied in any forwardlooking statements is disclosed from time to time in our filings with the SEC.

#

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 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 such measures 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 First Quarter 2023 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” torefer to American International Group, Inc., a Delaware corporation, and its consolidated subsidiaries.
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.
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 percommon share basis after eliminating items that can fluctuate significantly from period to period, including changes infair value (1) of AIG’s available for sale securities portfolio, (2) of market risk benefits attributable to our own credit
risk and (3) due to discount rates used to measure traditional and limited payment long-duration insurance contracts,
foreign currency translation adjustments and U.S. tax attribute deferred tax assets. This measure also eliminates theasymmetrical impact resulting from changes in fair value of our available for sale securities portfolio wherein there islargely 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 and foreign tax credits are utilized, the portion of the DTA utilized is included in these book value percommon share metrics. Adjusted book value per common share is derived by dividing total AIG commonshareholders’ equity, excluding AOCI adjusted for the cumulative unrealized gains and losses 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 ofDistribution 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 value ofshareholder on a per-common share basis. Adjusted Tangible Book Value per Common Share is derived by dividing
Total AIG common shareholders’ 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 and losses related to Fortitude Re funds withheld assets and DTA (Adjusted
return on common equity) is used to show the rate of return on common shareholders’ equity. We believe thismeasure is useful to investors because it eliminates items that can fluctuate significantly from period to period,
including changes in fair value (1) of AIG’s available for sale securities portfolio, (2) of market risk benefits attributableto our own credit risk and (3) due to discount rates used to measure traditional and limited payment long-duration
insurance contracts, foreign currency translation adjustments and U.S. tax attribute deferred tax assets. Thismeasure 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 since these fairvalue 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

11

FOR IMMEDIATE RELEASE

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 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 our internal allocation
model. Tax expense or benefit is calculated based on an internal attribution methodology that considers among otherthings the taxing jurisdiction in which the segments conduct business, as well as the deductibility of expenses inthose 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) and income 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. This definition is consistent across our segments. These items generally fall into one ormore 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; and measures that
we believe to be common to the industry. APTI is a GAAP measure for our segments. Excluded items include thefollowing:
•
•
•
•
•
•
•
•

•
•
•
•
•
•
•
•
•
•
•

12

changes in fair value of securities used to hedge guaranteed living benefits;
net change in market risk benefits (MRBs);changes in benefit reserves related to net realized gains and losses;changes in the fair value of equity securities;
net investment income on Fortitude Re funds withheld assets;
following deconsolidation of Fortitude Re, net realized gains and losses on Fortitude Re funds withheld assets;loss (gain) on extinguishment of debt;
all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals)
on derivative instruments used for non-qualifying (economic) hedging or for asset replication. Earned income onsuch economic hedges is reclassified from net realized gains and losses to specific APTI line items based on theeconomic risk being hedged (e.g. net investment income and interest credited to policyholder account balances);income or loss from discontinued operations;net loss reserve discount benefit (charge);
pension expense related to lump sum payments to former employees;
net gain or loss on divestitures and other;
non-operating litigation reserves and settlements;
restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency andsimplify our organization;
the portion of favorable or unfavorable prior year reserve development for which we have ceded the risk underretroactive reinsurance agreements and related changes in amortization of the deferred gain;
integration and transaction costs associated with acquiring or divesting businesses;
losses from the impairment of goodwill;
non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes orchanges to accounting principles; andincome from elimination of the international reporting lag.

FOR IMMEDIATE RELEASE

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, 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 ourcurrent businesses or operating performance; and•net tax charge related to the enactment of the Tax Cuts and Jobs Act.

See page 15 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 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 beincurred. 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, andthus 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 suchratios. In addition, investment returns, local taxes, cost of capital, regulation, product type and competition can havean 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, asadjusted, exclude catastrophe losses (CATs) and related reinstatement premiums, prior year development, net ofpremium adjustments, and the impact of reserve discounting. Natural catastrophe losses are generally weather orseismic 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 aremeaningful measures of our underwriting results on an ongoing basis as they exclude catastrophes and the impact ofreserve discounting which are outside of management’s control. We also exclude 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 ÷ NPE
c. General operating expense ratio = General operating expenses ÷ NPE
d. Expense ratio = Acquisition ratio + General operating expense ratioe. Combined ratio = Loss ratio + Expense ratio
f. CATs and reinstatement premiums = [Loss and loss adjustment expenses incurred – (CATs)] ÷[NPE +/(-) Reinstatement premiums related to catastrophes] – Loss ratiog. 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 prioraccident years]
h. Accident year combined ratio, as adjusted (AYCR ex-CAT) = AYLR ex-CAT + Expense ratio
i. 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 and reinstatement premiums 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 funding agreements and mutual funds. We believe themeasure of premiums and deposits is useful in understanding customer demand for our products, evolving producttrends and our sales performance period over period.
Results from discontinued operations are excluded from all of these measures.
#

13

#

#

FOR IMMEDIATE RELEASE

American International Group, Inc. (AIG) is a leading global insurance organization. AIG member companies offer
insurance solutions that help businesses and individuals in approximately 70 countries and jurisdictions protect theirassets and manage risks. 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 withadditional information about AIG have been provided as a convenience, and the information contained on suchwebsites 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 operationsof American International Group, Inc.. For additional information, please visit our website at www.aig.com. All
products and services are written or provided by subsidiaries or affiliates 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 March 31,
2023

2022

Pre-tax income (loss)/net income (loss), including
noncontrolling interests$

Total Tax

Non-

(Benefit)

controlling

After

Pre-tax

ChargeInterests(d)Tax

5,714 $

1,154 $

Noncontrolling interests

5,714

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

1,154

— $

4,560 $

(387)

(387)

(387)

4,173

Dividends on preferred stock
Net income attributable to AIG common shareholders

Pre-tax(231) $
(231)

Total Tax

Non-

(Benefits)

controlling

After

ChargeInterests(d)Tax(144) $
(144)

— $

(87)

117

117

117

30

7

7

4,166

23

Adjustments:
Changes in uncertain tax positions and other tax adjustments

91

—

(91)

22

—

(22)

Deferred income tax valuation allowance (releases) charges

6

—

(6)

(19)

—

19

Changes in fair value of securities used to hedge guaranteedliving benefits

(13)

(3)

—

(10)

3

1

—

2

Change in market risk benefit, net(a)

(233)

(49)

—

(184)

196

41

—

155

Changes in benefit reserves related to net realized gains(losses)

(2)

—

—

(2)

(6)

(1)

—

(5)

Changes in the fair value of equity securities

27

6

—

21

(51)

(11)

—

(40)

Net investment income on Fortitude Re funds withheld assets

(291)

(61)

—

(230)

(446)

(94)

—

(352)

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

140

29

—

111

31

7

—

24

Net realized (gains) losses on Fortitude Re funds withheld
embedded derivative(3,318)(697)—(2,621)

1,165

245

—

920

Net realized (gains) losses(b)

(349)

(105)

—

(244)

766

208

—

558

Net (gain) loss on divestitures and other

(40)

(9)

—

(31)

2

—

—

2

Non-operating litigation reserves and settlements

(34)

(7)

—

(27)

(1)

—

—

(1)

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

—

—

—

—

(19)

(4)

—

(15)

Net loss reserve discount (benefit) charge

(20)

(5)

—

(15)

64

13

—

51

Integration and transaction costs associated with acquiring ordivesting businesses

46

10

—

36

52

11

—

41

Restructuring and other costs

93

19

—

74

117

25

—

92
10

Non-recurring costs related to regulatory or accountingchanges

4

1

—

3

13

3

—

Net impact from elimination of international reporting lag(c)

—

—

—

—

(12)

(3)

—

(9)

278

278

(242)

(242)

(109) $

1,228

(125) $

1,211

Noncontrolling interests(d)Adjusted pre-tax income/Adjusted after-tax income
attributable to AIG common shareholders$

1,724 $

380 $$

1,643 $

300 $(a) Includes realized gains and losses on certain derivative instruments used for non-qualifying (economic) hedging.
(b) Includes all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or
for asset replication and net realized gains and losses on Fortitude Re funds withheld assets.
(c) 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 and prior periods. Therefore, we reported the cumulative effect of the change in accounting principle
within the Consolidated Statements of Income (Loss) for the year ended December 31, 2022 and did not retrospectively apply the effects of this change to prior periods.
(d) Includes the portion of equity interest of non-operating income of Corebridge and consolidated investment entities that AIG does not own.

15

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

Summary of Key Financial Metrics

Three Months Ended March 31,
2023

2022

Earnings per common share:
Basic
Income from continuing operations
Income from discontinued operations$

Net income attributable to AIG common shareholders% Inc. (Dec.)$

5.10 $—
5.10 $

0.03
—
0.03

(99.4) %NM(99.4)Net income attributable to AIG common shareholders$

5.04 $—
5.04 $

0.03
—
0.03

(99.4)
NM(99.4)

Adjusted after-tax income attributable to AIG common shareholders per diluted share
Weighted average shares outstanding:
Basic
Diluted$1.49 $

1.63

816.3
826.0

738.7
744.1

DilutedIncome from continuing operations
Income from discontinued operations

9.4 %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: Deferred tax assets (DTA)*
Less: Accumulated other comprehensive income (AOCI)$

Add: Cumulative unrealized gains and losses related toFortitude Re Funds withheld assets
Subtotal: AOCI plus cumulative unrealized gains and losses
related to Fortitude Re funds withheld assets
Total adjusted 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)

16

$

48

58,109
4,009
107
448
291
4,855
53,254800.2$

March 31, 2022
$

69.95
72.62
66.55

December 31, 2022
40,970485
40,485
4,518(22,616)$(16,911)(19,754)$$

55,721
3,927
92
418
286
4,723
50,998734.1% Inc.
December 31, 2022
(Dec.)(15.8) % $
55.15
4.5
75.90
4.2
69.47

March 31, 2023
43,317
485
42,832
4,543(19,329)(2,418)(2,862)(7,077)$

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)

March 31, 2022
56,457
485
55,972
4,940(7,029)$$55,200
3,939
92
408
284
4,723
50,477
727.6% Inc.
March 31, 2023
(Dec.)
6.7 % $
58.87
—
75.87
(0.1)
69.37

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
Actual or annualized net income (loss) attributable to AIG common shareholders (a)Three Months Ended March 31,
2022
2023
$
16,664$
92

Actual or annualized adjusted after-tax income attributable to AIG common shareholders (b)

$

4,912

$

4,844

Average AIG Common Shareholders' equity (c)Less: Average DTA*
Less: Average AOCI$

60,778
5,081
(979)

$

41,6594,531(20,973)

Add: Average cumulative unrealized gains and losses related to Fortitude Re funds withheld
assets(18,333)(2,399)Average adjusted common shareholders' equity (d)$58,096

ROCE (a÷c)
Adjusted return on common equity (b÷d)*(2,640)1,420

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

55,4610.2 %8.7 %27.4 %
8.5 %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 otherbalance 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 gains (losses) related to economic hedges and other
Net impact from elimination of International reporting lag
Total Net Investment Income - APTI Basis$$Three Months Ended
March 31,
2022
2023
3,237
$
3,533
(14)
(13)
27
(51)
(291)
(446)
39
53
—
(1)
2,998
$
3,075

Net Premiums Written - Change in Constant Dollar and Lag Adjusted

General Insurance
Change in net premiums written
Increase (decrease) in original currency and adjusted
for lag elimination
Foreign exchange effectLag elimination impact
Increase (decrease) as reported in U.S. dollars

17

Three Months Ended March 31, 2023
North
Global Global America
International General Commercial Personal Commercial Commercial Personal
Insurance
Lines
Insurance
Lines
Lines
Insurance

10.1 %

11.3 %

6.4 %

14.9 %

5.7 %(1.3)%

(4.1)
(1.0)
5.0 %

(2.8)
(2.0)
6.5 %

(8.4)
2.4
0.4 %

(0.8)
—
14.1 %(5.2)(4.8)(4.3)%(8.9)
2.5(7.7)%

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

Total General Insurance
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of reinsurance and prior year premiums
Accident year combined ratio, as adjusted
North America
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of reinsurance and prior year premiums
Accident year combined ratio, as adjusted
North America - Commercial Lines
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of reinsurance and prior year premiums
Accident year combined ratio, as adjusted
North America - Personal Insurance
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of reinsurance and prior year premiums
Accident year combined ratio, as adjusted
International
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of reinsurance and prior year premiums
Accident year combined ratio, as adjusted
International - Commercial Lines
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of reinsurance and prior year premiums
Accident year combined ratio, as adjusted
International - Personal Insurance
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of reinsurance and prior year premiums
Accident year combined ratio, as adjusted
Global - Commercial Insurance
Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of reinsurance and prior year premiums
Accident year combined ratio, as adjusted

18

Three Months Ended
March 31,
2022
2023
92.9
(4.5)
1.1

91.9
(4.2)
1.0

89.5

88.7

90.8
(2.1)
1.9

90.0
(3.9)
2.6

90.6

88.7

88.8
(2.4)
1.7

87.1
(4.1)
2.7

88.1

85.7

102.6
(0.7)
3.3

107.9
(2.7)
2.4

105.2

107.6

94.5
(6.4)
0.5

93.8
(4.5)
(0.6)

88.6

88.7

93.6
(9.9)
(0.2)

91.9
(6.9)
(1.3)

83.5

83.7

95.7
(1.8)
1.3

96.4
(1.1)
0.6

95.2

95.9

91.0
(5.8)
0.8

89.2
(5.3)
1.0

86.0

84.9

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
March 31,
2022
2023
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

$

$

$

1,211
148
1,063
246
817
3
814

$

1,248
126
1,122
252
870
3
867

Ending adjusted segment common equity
Average adjusted segment common equity$$

26,61826,543$$29,54329,936Return on adjusted segment common equity

11.6 %

12.3 %

Total segment shareholder’s equity
Less: Preferred equity
Total segment common equity
Less: Accumulated other comprehensive income (AOCI)
Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets
Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds
withheld assets$

24,576
206
24,370(2,455)(207)

Total adjusted segment common equity$

26,618$24,522
211
24,311(5,821)(589)$

29,543(5,232)(2,248)Reconciliation of Life and Retirement Return on Adjusted Segment Common Equity
Three Months Ended
March 31,
2022
2023
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$$

22,892$
22,408$12.2 %

Total segment shareholder’s equity
Less: Preferred equity
Total segment common equity
Less: Accumulated other comprehensive income (AOCI)
Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets$

20,824152
20,672(1,965)255$

22,892$

Subtotal: AOCI plus cumulative unrealized gains and losses related to Fortitude Re funds
withheld assets
Total adjusted segment common equity

19

934
74
860
174
686
2
684

$

$

$

886
115
771
154
617
2
615
22,94523,06210.7 %
10,689161
10,528(14,246)(1,829)(12,417)(2,220)$22,945

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
March 31,2022
2023
Individual Retirement:
Premiums
Deposits
Other
Premiums and deposits
Group Retirement:
Premiums
Deposits
Other
Premiums and depositsLife Insurance:
Premiums
Deposits
Other
Premiums and deposits
Institutional Markets:
Premiums
Deposits
Other
Premiums and deposits
Total Life and Retirement:
Premiums
Deposits
Other
Premiums and deposits

$

56
3,830
(5)

$

78
4,807
(2)

$

3,881

$

4,883

$

8
1,880
—

$

6
2,240
—

$

1,888

$

2,246

$

547
397
225

$

542
398
216

$

1,169

$

1,156

$

238
82
7

$

1,575
581
7

$

327

$

2,163

$

849
6,189
227

$

2,201
8,026
221

$

7,265

$

10,448

Total Debt and Preferred Stock Leverage
Three Months Ended
March 31, 2023
Hybrids / Total capital
Financial debt / Total capital (including AOCI)

2.9 %
29.2

Total debt / Total capitalPreferred stock / Total capital (including AOCI)

32.1
0.7

Total debt & preferred stock / Total capital (including AOCI)
AOCI Impact

32.8
(6.5)

Total debt & preferred stock / Total capital (excluding AOCI)

26.3 %

20