本稿は 2017 年 8 月 2 日、AIG 米国本社が発表した英文プレスリリース（原文）の参考訳です。
原文と合わせてご参照ください。本稿と原文との間で解釈に相違が生じた際には、原文が優先します。
原文の発信日付で、AIG ジャパンのホームページに掲載しています。

2017 年第 2 四半期の決算を公表
2017年8月2日（ニューヨーク発）：アメリカン・インターナショナル・グループ・インク（ニューヨーク証
券取引所銘柄：AIG）（「AIG」）は本日、2017年第2四半期の純利益が11億ドル、希薄化後1株当たりでは1.19ドルになったことを公表しました。これに対して、前年同期は純利益が19億ドル、希薄化後1株当たりでは1.68ドルでした。これは主として正味実現資本損失6,900万ドルを反映したものです。前年同期は正味実現資本利益10億ドルを計上しました。
2017年第2四半期の税引後営業利益は14億ドル、希薄化後1株当たりでは1.53ドルになりました。前年同期は税引後営業利益が13億ドル、希薄化後1株当たりでは1.15ドルでした。
AIG社長兼CEOのブライアン・デュパロウは以下のように述べました。「当社の2017年第2四半期決算
は、AIGの多様な事業構成に価値があり、収益を上げつつ成長する余地があることを示しています。
当社は多くの競合他社と一線を画するグローバルな事業展開の価値を最大化することにより、AIGの強固なフランチャイズをさらに確固たるものにしていきます。市場環境は引き続き厳しい状況ですが、当社は規律ある保険引受に注力し、収益性の向上を伴う成長への投資を重視していきます。」

2017 年第 2 四半期の業績概要*
6月 30日までの3ヶ月間（単位：百万米ドル、1株当たりの額を除く）

2017

純利益

$

2016

1,130

$

1,913

希薄化後1株当たり純利益

$

1.19

$

1.68

税引後営業利益

$

1,449

$

1,313

希薄化後1株当たり税引後営業利益

$

1.53

$

1.15

株主資本利益率（ROE）

6.1

%

8.6

%

調整後 ROE

10.5

%

7.9

%

標準化後 ROE

9.1

%

8.3

%

10.5

%

9.6

%

9.9

%

10.1

%

AIG連結:

中核事業（Core）:
調整後帰属株主資本利益率 - Core
標準化後帰属株主資本利益率 - Core (a)$普通株式1株当たりブック・バリュー

81.62
76.12

$
$

83.08
75.45

その他の包括利益累計額を除く普通株式1株当たりブック・バリュー$*非GAAPならびに非GAAP財務指標のGAAP指標への調整についてはレギュレーションGに関する注釈およびそれに続く表をご参照ください。
(a) Core標準化後ROEの低下は主として2016年下半期の米国における賠償責任保険事業の損害推定額の増加によるもので、これにより 100ベーシス・ポイント低下しました。

1

別段の記載がない限り、比較はすべて、2016年第2四半期に対するものです。詳細については、AIG
ウェブサイトの投資家向けセクションに掲載されている2017年第2四半期追加財務情報をご参照ください。
決算概要
ROEの推移 – 2017年第2四半期のROEおよび調整後ROEはそれぞれ6.1%、10.5%でした。オルタ
ナティブ投資からの好調な利益および異常災害損失が予想を下回ったことを含めて業績を標準化すると、Core標準化後ROEは9.9%となりました。Core 標準化後ROEは積極的な資本管理、費用効率化
およびコンシューマー・インシュアランスの業績の恩恵を受けましたが、これは2016年下半期のコマー
シャル・インシュアランスの損害推定額の増加により相殺されました。

費用重視を継続 – 営業関連費用およびその他費用の合計（GOE）は前年同期比4億400万ドル（15.6%）減少し、22億ドルとなりました。組織の簡素化およびテクノロジーの活用により、ユナイテッド・
ギャランティ・コーポレーションおよびAIGアドバイザー・グループの売却に関連するGOE減少を除くと、
実質ドル・ベースで、営業ベース事業費の4%減少を実現しました。

規律ある保険引受 – 戦略的ポートフォリオ再編の取組み継続により、コマーシャル・インシュアランス
の正味収入保険料は事業売却を除き15%、実質ドル・ベースで9%減少しました。個人向け損害保険のコンバインド・レシオは損害実績の好転および異常災害損失の減少の恩恵を受け、91.1となりました。

強固な資本および流動性 – 2017年第2四半期に当社は24億ドルの普通株式3,910万株を買い戻しました。これによりAIG の取締役会により承認されている自己株式取得枠総額の残高は、2017年8月2日時点で約25億ドルとなりました。
AIGの親会社流動資産は78億ドルでした。2017年第2四半期に親会社AIGは、租税分与支払いを含
め、現金および確定満期証券の形で保険子会社から17億ドルの配当を受け取りました。2017年第2四
半期中にレガシー投資も資産収益化により親会社に7億7,500万ドルの資本を還元し、親会社はアーチ・キャピタル・グループの普通株式売却により3億9,100万ドルを受け取りました。この売却後、損害保険会社はアーチ・キャピタル・グループの優先株式56万7,420株を保有しています。

中核事業（Core）

コマーシャル・インシュアランス概要 – 2017年第2四半期のコマーシャル・インシュアランスの税引前
営業利益は減少しました。これは、企業財物保険の損失の増加および2016年下半期の損害推定額の増加の影響を反映したものですが、異常災害損失の減少とオルタナティブ投資の利益増加により一部相殺されました。正味収入保険料の減少は、主にリスク選択を重視するという当社の方針に基づき、米国の賠償責任保険およびグローバルの財物保険分野において継続的に改善を行っている
ためです。



税引前営業利益には、企業賠償・経営保険事業部門の過年度アドバース・デベロップメント
2

（再保険後）2,100万ドルならびに企業財物・スペシャリティ保険事業部門の前年以前事故年度の当年度発生保険金の増加（再保険後）分4,100万ドルが含まれています。過年度アドバース・
デベロップメントはNICOアドバース・デベロップメント・カバレッジ（ADC）再保険契約に譲渡された損失およびADCカバーの繰延利益の償却を除いたものです。



2017年第2四半期の損害率は73.8ポイントで、前年同期比で3.6ポイントの上昇となりました。
事故発生年度ベースの調整済み損害率は4.4ポイント上昇の66.1ポイントとなりました。この上昇分の約4.0ポイントは米国の賠償責任保険を中心とした2016年下半期の損害推定額の増加に関連したものです。損害推定額増加を考慮に入れると、残りの上昇分の主因は財物保険の損失の増加でした。



2017年第2四半期の事業費率は28.9ポイントとなりました。GOEの改善、再保険契約による再保険料収入およびアスコット・アンダーライティング・ホールディングスの売却に関連した保険
委託料の減少は、当社の戦略的ポートフォリオ再編の取組みに伴う保険料の減少により相殺され、前年同期からわずかに上昇しました。



コマーシャル・インシュアランスの正味収入保険料は事業売却を除き15%、実質ドル・ベース
では9%減少しました。この減少は2017年第2四半期を通じた当社の戦略的ポートフォリオ再編の取組みの継続および厳しい市場環境に起因します。

（単位：百万米ドル）

2017

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

$
$

3,826
716

6月30日までの3ヶ月間
2016
増減
$
$

4,497
941

(15)
(24)

%

70.2
28.1
98.3

3.6
0.8
4.4

pts

2,321
815

(10)
(28)

%

70.4
25.4
95.8

5.7
0.9
6.6

pts

2,176
126

(20)
3

%

70.8
32.1

69.7
31.7

1.1
0.4

pts

102.9

101.4

1.5

73.8
28.9
102.7

企業賠償・経営保険
正味収入保険料
税引前営業利益引受に関する比率：
損害率
事業費率
コンバインド・レシオ

$
$

2,085
586

$
$

76.1
26.3
102.4

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

$
$

3

1,741
130

$
$

コンシューマー・インシュアランス概要 – 2017 年第 2 四半期のコンシューマー・インシュアランスの税
引前営業利益は、コンシューマー事業部門全体を通じた改善を反映して、33%増加しました。コンシュ
ーマー・インシュアランスは保険引受実績の改善、費用削減および当社の退職給付事業部門における安定した収益の恩恵を受けました。

•

個人向け退職給付では、規律ある料率設定および積極的な信用格付け管理による基礎的
正味投資スプレッドの改善、繰延保険獲得費用の償却費減少および株式市場のパフォーマンス
改善に関連する保険契約手数料利益の増加が、オルタナティブ投資利益の減少により一部相殺されました。個人向け退職給付のネット・フローはマイナス6億9,100万ドルに減少しました。これは主として米労働省の受託者責任ルールの影響および実施を巡る不確実性を反映したものです。

•

団体向け退職給付では、株式市場の改善およびGOE減少による保険契約手数料利益の増加が、基礎的正味投資スプレッドの低下およびオルタナティブ投資利益の減少により一部相殺されました。団体向け退職給付のネット・フローは微減のマイナス1億8,100万ドルとなりました。
これは主として低調であった販売および予想の範囲内ながらも前年同期比で増加した保険解約により一部相殺されました。

•

生命保険における税引前利益の増加は、国内GOEの減少、国際事業の繰延保険獲得費用の償却費減少およびユニバーサル生命保険の発展に起因する保険契約手数料利益の増加を反映したものですが、正味投資利益の減少により一部相殺されました。

•

個人向け損害保険は堅調に推移しました。損失実績の好転、異常災害損失の減少、戦略的ポートフォリオ再編の取組みを反映した事業費率の改善ならびにオルタナティブ投資による正味投資利益の増加は、既経過保険料の減少および前年以前事故年度に係る正味支払備金戻入の減少により一部相殺されました。
6月30日までの3ヶ月間
2017
2016
増減

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

4

$

3,873
1,882
5,980
4,720
1,260

$

3,888
1,912
6,132
5,184
948

(2)
(2)
(9)
33

%

$

223
1,003
1,383
825
558

$

223
1,020
1,509
1,004
505

(2)
(8)
(18)
10

%

$

105
535
696
430

100
555
707
442

5
(4)
(2)
(3)

%

$

税引前営業利益266

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

265

-

$

757
261
1,030
924
106

$

703
271
988
962
26

8
(4)
4
(4)
308

%

$
$

2,846
330

$
$

2,924
152

(3)
117

%

55.6
41.4
97.0

(4.9)
(1.0)
(5.9)

pts

50.7
40.4
91.1
# # #

AIG グループは、世界の保険業界のリーダーであり、80 以上の国や地域で顧客にサービスを提供しています。
1919年に創業し、現在では、損害保険、生命保険、退職給付およびその他の金融サービスを幅広く提供しています。AIGグループの商品・サービスを通じた多岐にわたるサポートは、法人および個人のお客様の資産を守り、
リスクマネジメントおよび確かなリタイヤメント・セキュリティをお届けします。AIGグループにおける主要事業は、コマーシャル・インシュアランスおよびコンシューマー・インシュアランス、ならびにその他の事業で構成されます。
コマーシャル・インシュアランスは、企業賠償・経営保険、企業財物・スペシャリティ保険の2事業部門、コンシューマー・インシュアランスは、個人向け退職給付、団体向け退職給付、生命保険、個人向け損害保険の4事業部門により構成されています。持株会社 AIG, Inc.はニューヨークおよび東京の各証券取引所に上場しています。
AIGの追加情報についてはwww.aig.com |You Tube : www.youtube.com/aig | Twitter : @AIGinsurance www.twitter.com/AIGinsurance |LinkedIn : http://www.linkedin.com/company/aig |を参照ください。AIGに関する追加情報を記載しているこれ
ら参照先は便宜上提供されており、かかるウェブサイトに記載されている情報は、参照することにより本プレスリ
リースに組み込まれていません。

AIGとは、AIG, Inc.傘下の全世界の損害保険、生命保険、リタイヤメント・サービス事業ならびに一般的な保険事業のマーケティング名です。より詳細な情報については当社のホームページ（ www.aig.com ）を参照ください。
全ての商品およびサービスはAIG, Inc.傘下の子会社または関連会社により引き受けまたは提供されています。
これらの商品およびサービスは一部の国では利用できない可能性があり、実際の契約に準拠します。保険以外の商品・サービスは、独立した第三者によって提供されることがあります。一部の損害保険の補償については、
サープラス・ラインの保険会社によって提供される可能性があります。サープラス・ラインの保険会社は、一般的に米国州政府保証基金に加入しないため、当該基金による保証は行われません。

5

FOR IMMEDIATE RELEASE

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

Contacts:
Liz Werner (Investors): 212-770-7074; elizabeth.werner@aig.com
Fernando Melon (Investors): 212-770-4630; fernando.melon@aig.com
Claire Talcott (Media): 212-458-6343; claire.talcott@aig.com
AIG REPORTS SECOND QUARTER 2017 RESULTSNEW YORK, August 2, 2017 - American International Group, Inc. (NYSE: AIG) today
reported net income of $1.1 billion, or $1.19 per diluted share, for the second quarter 2017,
compared to $1.9 billion, or $1.68 per diluted share, in the prior-year quarter, primarilyreflecting net realized capital losses of $69 million compared to net realized capital gains of$1.0 billion a year ago.
After-tax operating income was $1.4 billion, or $1.53 per diluted share, for the second quarter2017 compared to $1.3 billion, or $1.15 per diluted share.
“Our second quarter results show the value of AIG’s diverse businesses and the opportunities
we have to grow profitably,” said Brian Duperreault, President and Chief Executive
Officer. “We will build on AIG’s strong franchise by maximizing the value of ourinternational footprint, which distinguishes us from many of our competitors. While market
conditions remain challenging, we are committed to disciplined underwriting and are focusedon investing in profitable growth.”
SECOND QUARTER FINANCIAL SUMMARY*
Three Months Ended
June 30,($ in millions, except per share amounts)
Net income
Net income per diluted share
After-tax operating income
After-tax operating income per diluted share
Return on equity
AIG Consolidated:
Adjusted return on equity
Normalized return on equity
Core:
Adjusted return on attributed equity - Core
Normalized return on attributed equity - Core (a)Book value per common share
Book value per common share, excluding accumulated other comprehensive income

$
$
$
$

$
$

2017
1,130 $
1.19 $
1,449 $
1.53 $
6.1 %

2016
1,913
1.68
1,313
1.15
8.6 %

10.5 %
9.1 %

7.9 %
8.3 %

10.5 %
9.9 %
81.62 $
76.12 $

9.6 %
10.1 %
83.08
75.45*Refer to the Comments on Regulation G and the tables that follow for a discussion of non-GAAP financial measures and thereconciliations of the non-GAAP financial measures to GAAP measures.
(a) The declines in Core Normalized ROE are largely due to the increase in second half 2016 U.S. Casualty loss estimates, which
contributed 100 basis pts to the decline.

1

FOR IMMEDIATE RELEASEAll comparisons are against the second quarter of 2016, unless otherwise indicated. Refer tothe AIG Second Quarter 2017 Financial Supplement which is posted on AIG's website in theInvestor Information section for further information.
FINANCIAL HIGHLIGHTSROE Trends – ROE and Adjusted ROE were 6.1% and 10.5%, respectively, in the second
quarter. After normalizing our results, including for strong alternative investment returns andlower than expected catastrophe losses, Core Normalized ROE was 9.9%. Core Normalized
ROE benefited from active capital management, expense efficiencies, and the performance of
our Consumer business, offset by the increased Commercial loss estimates in the second half of2016.
Continued Focus on Expenses – General operating and other expenses (GOE) declined $404
million or 15.6% to $2.2 billion. GOE, operating basis, declined 4% on a constant dollar basis
excluding the GOE reductions due to the sales of United Guaranty Corporation and AIG
Advisor Group, due to organizational simplification and better use of technology.
Underwriting Discipline – Continued execution of strategic portfolio actions resulted in a 15%
decrease in net premiums written for Commercial Insurance, or 9% on a constant dollar basis
excluding divestitures. Personal Insurance combined ratio of 91.1 benefited from favorable loss
experience and lower catastrophe losses.
Strong Capital and Liquidity – In the second quarter, AIG repurchased 39.1 million commonshares for $2.4 billion with a remaining authorization of approximately $2.5 billion, as ofAugust 2, 2017.
AIG Parent liquidity stood at $7.8 billion. In the second quarter, AIG Parent received $1.7
billion of distributions from insurance subsidiaries in the form of cash and fixed maturity
securities including tax sharing payments. During the quarter, Legacy Investments also
returned $775 million of capital to Parent from asset monetizations and Parent received $391
million from the sale of Arch Capital Group Ltd. Common stock. After the sale, the Property
Casualty Insurance Companies own 567,420 shares of Arch Capital Group Ltd. preferredstock.
CORE
Commercial Insurance Highlights – In the second quarter, Commercial Insurance pre-tax
operating income declined reflecting higher Property losses and the impact of the second half2016 increase in loss estimates. This was partially offset by lower catastrophe losses and higher
alternative investment returns. Continued remediation in the U.S. Casualty and Global Property
businesses accounted for a large majority of the decline in net premiums written which isconsistent with AIG’s focus on risk selection.
•2

Pre-tax operating income included $21 million of adverse prior year reserve
development, net of reinsurance in Liability and Financial Lines and $41 million of

FOR IMMEDIATE RELEASE

unfavorable prior year reserve development, net of reinsurance in Property and Special
Risks. Prior year reserve development is net of the losses ceded to the NICO adverse
development coverage (ADC) reinsurance agreement and the amortization of thedeferred gain of the ADC cover.
•The loss ratio of 73.8 increased by 3.6 points in the second quarter 2017. The accident
year loss ratio, as adjusted, of 66.1 increased by 4.4 points. Approximately 4.0 pointsof this increase related to the increase in second half 2016 loss estimates, which wereprimarily in the U.S. Casualty business. Taking into account the increased loss
estimates, the remaining increase was primarily driven by higher Property losses.

•

The expense ratio was 28.9 in the second quarter, slightly higher than that in the prioryear quarter as improvements in GOE, ceding commissions received from reinsurers
and a decline in commission expenses associated with the sale of Ascot Underwriting
Holdings Ltd. were offset by the decline in premiums earned associated with ourstrategic portfolio actions.

•

Commercial Insurance net premiums written decreased by 15% or 9% on a constantdollar basis excluding divestitures. The decrease was related to continued execution on
our strategic portfolio actions throughout the second quarter of 2017 and challenging
market conditions.
Three Months Ended June 30,($ in millions)
Total Commercial Insurance
Net premiums written
Pre-tax operating income
Underwriting ratios:
Loss ratio
Expense ratio
Combined ratio
Liability and Financial Lines
Net premiums written
Pre-tax operating income
Underwriting ratios:
Loss ratio
Expense ratio
Combined ratio
Property and Special Risks
Net premiums written
Pre-tax operating income
Underwriting ratios:
Loss ratio
Expense ratio
Combined ratio

3

2017
$
$

3,826
716

2016
$
$

73.8
28.9
102.7

$
$

2,085
586

$
$

76.1
26.3
102.4

$
$

1,741
130
70.8
32.1
102.9

$
$

Change4,497941(15) %
(24)

70.2
28.1
98.3

3.6 pts
0.8
4.4

2,321
815

(10) %
(28)

70.4
25.4
95.8

5.7 pts
0.9
6.6

2,176
126

(20) %
3

69.7
31.7
101.4

1.1 pts
0.4
1.5

FOR IMMEDIATE RELEASE

Consumer Insurance Highlights – In the second quarter, Consumer Insurance pre-tax operating
income increased 33% reflecting improvements across all Consumer modules. Consumer Insurance
benefited from improved underwriting results, expense reduction and stable earnings from our
Retirement businesses.
•

In Individual Retirement, improved base net investment spreads from disciplined pricing
and active credit rate management, and lower DAC amortization and higher policy fee
income related to better equity market performance were partially offset by lower
alternative investment income. Net flows declined to negative $691 million for Individual
Retirement primarily reflecting the uncertainties surrounding the impact andimplementation of the DOL Fiduciary Rule.

•In Group Retirement, higher policy fee income reflecting improved equity markets andlower GOE were partially offset by lower base net investment income spreads and lower
alternative investment income. Group Retirement net flows declined slightly to negative$181 million, primarily driven by slightly lower sales, and surrenders within expectations
but higher than the prior-year quarter.

•

In Life Insurance, higher pre-tax operating income reflected lower domestic GOE, lower
DAC amortization on international business, and higher policy fee income from growth inuniversal life, partially offset by lower net investment income.

•

Personal Insurance delivered strong results. Favorable loss experience and lower
catastrophe losses, an improved expense ratio that reflected strategic and portfolio actions,
together with growth in net investment income from alternative investments were partially
offset by a lower earned premium base and lower net favorable prior year loss reserve
development.

Three Months Ended June 30,($ in millions)
Total Consumer Insurance
Premiums & Fees
Net Investment Income
Operating Revenue
Benefits & Expenses
Pre-tax operating income
Individual Retirement
Premiums & Fees
Net Investment Income
Operating Revenue
Benefits & Expenses
Pre-tax operating income

4

2017

2016

Change

$

3,873
1,882
5,980
4,720
1,260

$

3,888
1,912
6,132
5,184
948

- %
(2)
(2)
(9)
33

$

223 $
1,003
1,383
825
558

223
1,020
1,509
1,004
505

- %
(2)
(8)
(18)
10

FOR IMMEDIATE RELEASE

Three Months Ended June 30,

2017($ in millions)Group Retirement
Premiums & Fees
Net Investment Income
Operating Revenue
Benefits & Expenses
Pre-tax operating income
Life Insurance
Premiums & Fees
Net Investment Income
Operating Revenue
Benefits & Expenses
Pre-tax operating income
Personal Insurance
Net premiums written
Pre-tax operating income
Underwriting ratios:
Loss ratio
Expense ratio
Combined ratio

2016

Change

$

105 $
535
696
430
266

100
555
707
442
265

5 %
(4)
(2)
(3)
-

$

757 $
261
1,030
924
106

703
271
988
962
26

8 %
(4)
4
(4)
308

$
$

2,846 $
330 $

2,924
152

(3) %
117

50.7
40.4
91.1

55.6
41.4
97.0

(4.9) pts
(1.0)
(5.9)

CONFERENCE CALL
AIG will host a conference call tomorrow, Thursday, August 3, 2017, at 9:00 a.m. ET to review
these results. The call is open to the public and can be accessed via a live listen-only webcast in theInvestor Relations section of www.aig.com. A replay will be available after the call at the same
location.

###

Additional supplementary financial data is available in the Investor Relations section at
www.aig.com.
The conference call (including the conference call presentation material), the earnings release andthe financial supplement may include, and officers and representatives of AIG may from time totime make, projections, goals, assumptions and statements that may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These
projections, goals, assumptions and statements are not historical facts but instead represent only
AIG’s belief regarding future events, many of which, by their nature, are inherently uncertain andoutside AIG’s control. These projections, goals, assumptions and statements include statements
preceded by, followed by or including words such as “will,” “believe,” “anticipate,” “expect,”“intend,” “plan,” “focused on achieving,” “view,” “target,” “goal” or “estimate.” These projections,
goals, assumptions and statements may address, among other things, AIG’s: exposures to subprime
mortgages, monoline insurers, the residential and commercial real estate markets, state and5FOR IMMEDIATE RELEASE

municipal bond issuers, sovereign bond issuers, the energy sector and currency exchange rates;
exposure to European governments and European financial institutions; strategy for risk
management; actual and anticipated sales of businesses or asset divestitures or monetizations;
restructuring of business operations, including anticipated restructuring charges and annual costsavings; generation of deployable capital; strategies to increase return on equity and earnings per
share; strategies to grow net investment income, efficiently manage capital, grow book value percommon share, and reduce expenses; anticipated organizational and business changes; strategies
for customer retention, growth, product development, market position, financial results andreserves; management of the impact that innovation and technology changes may have on customer
preferences, the frequency or severity of losses and/or the way AIG distributes and underwrites its
products; segments’ revenues and combined ratios; and management retention plans. It is possiblethat AIG’s actual results and financial condition will differ, possibly materially, from the results
and financial condition indicated in these projections, goals, assumptions and statements. Factorsthat could cause AIG’s actual results to differ, possibly materially, from those in the specificprojections, goals, assumptions and statements include: changes in market conditions; negative
impacts on customers, business partners and other stakeholders; the occurrence of catastrophic
events, both natural and man-made; significant legal proceedings; the timing and applicablerequirements of any new regulatory framework to which AIG is subject as a nonbank systemicallyimportant financial institution and as a global systemically important insurer; concentrations in
AIG’s investment portfolios; actions by credit rating agencies; judgments concerning casualty
insurance underwriting and insurance liabilities; AIG’s ability to successfully manage Legacy
portfolios; AIG’s ability to successfully reduce costs and expenses and make business andorganizational changes without negatively impacting client relationships or AIG’s competitive
position; AIG’s ability to successfully dispose of, or monetize, businesses or assets; judgments
concerning the recognition of deferred tax assets; judgments concerning estimated restructuring
charges and estimated cost savings; and such other factors discussed in Part I, Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)
in AIG’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017 (which will
be filed with the SEC), Part I, Item 2. MD&A in AIG’s Quarterly Report on Form 10-Q for thequarterly period ended March 31, 2017 and Part II, Item 7. MD&A and Part I, Item 1A. Risk
Factors in AIG’s Annual Report on Form 10-K for the year ended December 31, 2016. AIG is notunder any obligation (and expressly disclaims any obligation) to update or alter any projections,
goals, assumptions, or other statements, whether written or oral, that may be made from time totime, whether as a result of new information, future events or otherwise.
##
COMMENT ON REGULATION G#

Throughout this press release, including the financial highlights, AIG presents its financial
condition and results of operations in the way it believes will be most meaningful andrepresentative of its business results. Some of the measurements AIG uses are “non-GAAP
financial measures” under Securities and Exchange Commission rules and regulations. GAAP is
the acronym for “generally accepted accounting principles” in the United States. The non-GAAP
financial measures AIG presents may not be comparable to similarly-named measures reported byother companies. The reconciliations of such measures to the most comparable GAAP measures inaccordance with Regulation G are included within the relevant tables or in the Second Quarter2017 Financial Supplement available in the Investor Information section of AIG’s website,
6

FOR IMMEDIATE RELEASE

www.aig.com.
Book Value per Common Share, Excluding Accumulated Other Comprehensive Income(AOCI) and Book Value per Common Share, Excluding AOCI and Deferred Tax Assets(DTA) (Adjusted Book Value per Common Share) are used to show the amount of AIG’s net
worth on a per-share basis. AIG believes these measures are useful to investors because theyeliminate items that can fluctuate significantly from period to period, including changes in fairvalue of AIG’s available for sale securities portfolio, foreign currency translation adjustments andU.S. tax attribute deferred tax assets. These measures also eliminate the asymmetrical impact
resulting from changes in fair value of AIG’s available for sale securities portfolio wherein there islargely no offsetting impact for certain related insurance liabilities. AIG excludes deferred tax
assets representing U.S. tax attributes related to net operating loss carryforwards and foreign tax
credits as they have not yet been utilized. Amounts for interim periods are estimates based on
projections of full-year attribute utilization. As net operating loss carryforwards and foreign tax
credits are utilized, the portion of the DTA utilized is included in these book value per commonshare metrics. Book value per common share, excluding AOCI, is derived by dividing Total AIG
Shareholders’ equity, excluding AOCI, by total common shares outstanding. Adjusted Book Valueper Common Share is derived by dividing Total AIG shareholders’ equity, excluding AOCI andDTA (Adjusted Shareholders’ Equity), by total common shares outstanding.
AIG Return on Equity – After-tax Operating Income Excluding AOCI and DTA (Adjusted
Return on Equity) is used to show the rate of return on shareholders’ equity. AIG believes thismeasure is useful to investors because it eliminates items that can fluctuate significantly fromperiod to period, including changes in fair value of AIG’s available for sale securities portfolio,
foreign currency translation adjustments and U.S. tax attribute deferred tax assets. This measure
also eliminates the asymmetrical impact resulting from changes in fair value of AIG’s available forsale securities portfolio wherein there is largely no offsetting impact for certain related insurance
liabilities. AIG excludes deferred tax assets representing U.S. tax attributes related to net operating
loss carryforwards and foreign tax credits as they have not yet been utilized. Amounts for interim
periods are estimates based on projections of full-year attribute utilization. As net operating loss
carryforwards and foreign tax credits are utilized, the portion of the DTA utilized is included in
Adjusted Return on Equity. Adjusted Return on Equity is derived by dividing actual or annualized
after-tax operating income attributable to AIG by average Adjusted Shareholders’ Equity.
AIG Normalized Return on Equity further adjusts Adjusted Return on Equity for the effects ofcertain volatile or market related items. AIG believes this measure is useful to investors because it
presents the trends in AIG’s consolidated return on equity without the impact of certain items thatcan experience volatility in AIG’s short-term results. Normalized Return on Equity is derived by
excluding the following tax adjusted effects from Adjusted Return on Equity: the difference
between actual and expected (i) catastrophe losses, (ii) alternative investment returns, and (iii)
Direct Investment book (DIB) and Global Capital Markets (GCM) returns; fair value changes on
PICC investments; update of actuarial assumptions; Life insurance incurred but not reported(IBNR) death claim charge; and prior year loss reserve development.
Core Attributed Equity is an attribution of total AIG Adjusted Shareholders’ Equity to each of
AIG’s modules within Core based on AIG’s internal capital model, which incorporates therespective risk profiles. Attributed equity represents AIG’s best estimates based on current facts
7

FOR IMMEDIATE RELEASE

and circumstances and will change over time.
Core Return on Equity – After-tax Operating Income (Adjusted Return on Attributed
Equity) is used to show the rate of return on attributed equity. Return on Attributed Equity isderived by dividing actual or annualized After-tax Operating Income by Average Attributed
Equity.
Core Normalized Return on Attributed Equity (Normalized Return on Attributed Equity)
further adjusts Adjusted Return on Attributed Equity for the effects of certain volatile or marketrelated items. AIG believes this measure is useful to investors because it presents the trends in
AIG’s Return on Attributed Equity without the impact of certain items that can experience
volatility in our short-term results. Normalized Return on Attributed Equity is derived by excluding
the following tax adjusted effects from Return on Attributed Equity: the difference between actualand expected (i) catastrophe losses, (ii) alternative investment returns, and (iii) DIB and GCM
returns; fair value changes on PICC investments; update of actuarial assumptions; Life insurance
IBNR death claim charge; and prior year loss reserve development.
After-tax Operating Income Attributable to Core is derived by subtracting attributed interest
expense and income tax expense from pre-tax operating income. Attributed debt and the related
interest expense is calculated based on AIG’s internal capital model. Tax expense or benefit iscalculated based on an internal attribution methodology that considers among other things thetaxing jurisdiction in which the operating segments conduct business, as well as the deductibility of
expenses in those jurisdictions.
Normalized After-tax Operating Income Attributable to Core further adjusts After-tax
Operating Income attributable to Core for the effects of certain volatile or market related items.
AIG believes this measure is useful to investors because it presents the trends in after tax operating
income without the impact of certain items that can experience volatility in AIG’s short-term
results. Normalized After-tax Operating Income attributable to Core is derived by excluding thefollowing tax adjusted effects from After-tax Operating Income: the difference between actual andexpected (i) catastrophe losses, (ii) alternative investment returns, and (iii) DIB and GCM returns;
fair value changes on PICC investments; update of actuarial assumptions; Life insurance IBNR
death claim charge; and prior year loss reserve development (PYD), net of reinsurance premium
adjustments.
Operating Revenues exclude Net realized capital gains (losses), income from non-operating
litigation settlements (included in Other income for GAAP purposes) and changes in fair value of
securities used to hedge guaranteed living benefits (included in Net investment income for GAAP
purposes). Operating revenues is a GAAP measure for our operating segments.
General Operating Expenses, Operating Basis (Operating GOE), is derived by making thefollowing adjustments to general operating and other expenses: include (i) certain loss adjustment
expenses, reported as policyholder benefits and losses incurred and (ii) certain investment and otherexpenses reported as net investment income, and exclude (i) advisory fee expenses, (ii) nondeferrable insurance commissions, (iii) direct marketing and acquisition expenses, net of deferrals,(iv) non-operating litigation reserves and (v) other expense related to an asbestos retroactive
reinsurance agreement. AIG uses General operating expenses, operating basis, because AIG
8FOR IMMEDIATE RELEASE

believes it provides a more meaningful indication of AIG’s ordinary course of business operating
costs, regardless of within which financial statement line item these expenses are reported
externally within AIG’s segment results. The majority of these expenses are employee-related
costs. For example, Other acquisition expenses and losses and loss adjustment expenses primarily
represent employee-related costs in the underwriting and claims functions, respectively. Excluded
from this measure are non-operating expenses (such as restructuring costs and litigation reserves),
direct marketing expenses, insurance company assessments and non-deferrable commissions. AIG
also excludes the impact of foreign exchange and the expenses of AIG Advisor Group and UGC,
which have been divested, when measuring period-over-period fluctuations in General Operating
Expenses, Operating basis.
AIG uses the following operating performance measures because AIG believes they enhance theunderstanding of the underlying profitability of continuing operations and trends of AIG’s businesssegments. AIG believes they also allow for more meaningful comparisons with AIG’s insurancecompetitors. When AIG uses these measures, reconciliations to the most comparable GAAP
measure are provided on a consolidated basis.
Pre-tax Operating Income (PTOI) is derived by excluding the following items from income fromcontinuing operations before income tax. This definition is consistent across AIG’s modules(including geography). These items generally fall into one or more of the following broad
categories: legacy matters having no relevance to AIG’s current businesses or operating
performance; adjustments to enhance transparency to the underlying economics of transactions;and measures that AIG believes to be common to the industry. PTOI is a GAAP measure for ouroperating segments.
• changes in fair value of securities used tohedge guaranteed living benefits;• changes in benefit reserves and deferred
policy acquisition costs (DAC), value ofbusiness acquired (VOBA), and sales
inducement assets (SIA) related to net
realized capital gains and losses;• loss (gain) on extinguishment of debt;• net realized capital gains and losses;• non-qualifying derivative hedging
activities, excluding net realized capitalgains and losses;• income or loss from discontinued
operations;• net loss reserve discount benefit (charge);• pension expense related to a one-time lumpsum payment to former employees;• income and loss from divested businesses;• non-operating litigation reserves andsettlements;• reserve development related to nonoperating run-off insurance business;• restructuring and other costs related toinitiatives designed to reduce operating
expenses, improve efficiency and simplify
our organization; and• the portion of favorable or unfavorable
prior year reserve development for which
we have ceded the risk under retroactive
reinsurance agreements and related changes
in amortization of the deferred gain.

After-tax Operating Income Attributable to AIG (ATOI) is derived by excluding the tax
effected PTOI adjustments described above and the following tax items from net income
attributable to AIG:••
9deferred income tax valuation allowance releases and charges; anduncertain tax positions and other tax items related to legacy matters having no relevance to ourFOR IMMEDIATE RELEASE

current businesses or operating performance.
See page 12 for the reconciliation of Net income attributable to AIG to After-tax Operating Income
Attributable to AIG.
Ratios: AIG, along with most property and casualty insurance companies, uses the loss ratio, theexpense ratio and the combined ratio as measures of underwriting performance. These ratios are
relative measurements that describe, for every $100 of net premiums earned, the amount of losses
and loss adjustment expenses (which for Commercial Insurance excludes net loss reserve discount),
and the amount of other underwriting expenses that would be incurred. A combined ratio of lessthan 100 indicates underwriting income and a combined ratio of over 100 indicates an underwriting
loss. AIG’s ratios are calculated using the relevant segment information calculated under GAAP,and thus may not be comparable to similar ratios calculated for regulatory reporting purposes. The
underwriting environment varies across countries and products, as does the degree of litigation
activity, all of which affect such ratios. In addition, investment returns, local taxes, cost of capital,
regulation, product type and competition can have an effect on pricing and consequently on
profitability as reflected in underwriting income and associated ratios.
Accident year loss and combined ratios, as adjusted: both the accident year loss andcombined ratios, as adjusted, exclude catastrophe losses and related reinstatement premiums,
prior year development, net of premium adjustments, and the impact of reserve discounting.
Natural catastrophe losses are generally weather or seismic events having a net impact on AIG
in excess of $10 million each. Catastrophes also include certain man-made events, such as
terrorism and civil disorders that meet the $10 million threshold. AIG believes the as adjusted
ratios are meaningful measures of AIG’s underwriting results on an on-going basis as theyexclude catastrophes and the impact of reserve discounting which are outside of management’s
control. AIG also exclude prior year development to provide transparency related to current
accident year results.
Underwriting ratios are computed as follows:• Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned(NPE)• Acquisition ratio = Total acquisition expenses ÷ NPE• General operating expense ratio = General operating expenses ÷ NPE• Expense ratio = Acquisition ratio + General operating expense ratio• Combined ratio = Loss ratio + Expense ratio• Accident year loss ratio, as adjusted (AYLR) = [Loss and loss adjustment expenses
incurred – CATs – PYD] ÷ [NPE +/(-) Reinstatement premiums (RIPs) related tocatastrophes +/(-) RIPs related to prior year catastrophes + (Additional) returned
premium related to PYD on loss sensitive business + Adjustment for ceded premiums
under reinsurance contracts related to prior accident years]• Accident year combined ratio = AYLR + Expense ratio• Catastrophe losses (CATs) and reinstatement premiums = [Loss and loss adjustment
expenses incurred – (CATs)] ÷ [NPE +/(-) RIPs related to catastrophes] – Loss ratio• Prior year development net of (additional) return premium related to PYD on loss
sensitive business = [Loss and loss adjustment expenses incurred – Prior year loss
reserve development unfavorable (favorable) (PYD), net of reinsurance] ÷ [NPE +/(-)
10

FOR IMMEDIATE RELEASE

RIPs related to prior year catastrophes + (Additional) returned premium related to
PYD on loss sensitive business] – Loss ratio
Results from discontinued operations are excluded from all of these measures.
###

American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide
range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries andjurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide
for retirement security. AIG’s core businesses include Commercial Insurance and Consumer Insurance, as well as Other Operations. Commercial
Insurance comprises two modules – Liability and Financial Lines, and Property and Special Risks. Consumer Insurance comprises four modules –Individual Retirement, Group Retirement, Life Insurance and Personal Insurance. AIG common stock is listed on the New York Stock Exchange and theTokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance
www.twitter.com/AIGinsurance | LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG have been
provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group,
Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliatesof American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Noninsurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines
insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.

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

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

Pre-tax income (loss)/net income, including noncontrolling interests
Noncontrolling interest
Pre-tax income (loss)/net income attributable to AIG
Adjustments:
Uncertain tax positions and other tax adjustments
Deferred income tax valuation allowance (releases) charges
Changes in fair value of securities used to hedge
guaranteed living benefits
Changes in benefit reserves and DAC, VOBA andSIA related to net realized capital gains (losses)
Unfavorable (favorable) prior year development and related
amortization changes ceded under retroactive reinsurance agreements(Gain) loss on extinguishment of debt
Net realized capital (gains) losses
Noncontrolling interest on net realized capital (gains) losses(Income) loss from discontinued operations(Income) loss from divested businesses
Non-operating litigation reserves and settlements
Net loss reserve discount (benefit) charge
Pension expense related to a one-time lump sum payment
to former employees
Restructuring and other costs
Pre-tax operating income/After-tax operating income$$

Pre-tax
1,667
1,667

Three Months Ended June 30,
2017
2016
Tax Effect After-tax
Pre-tax
Tax Effect$557 $ 1,118 $ 2,858 $
924
12
557
1,130
2,858
924

After-tax$ 1,917
(4)
1,913

-

(66)
8

66
(8)

-

63
(35)

(63)
35

(80)

(28)

(52)

(120)

(42)

(78)

(58)

(20)

(38)

64

22

42

251
(4)
69
60
(80)
260

89
(2)
38
40
(28)
90

162
(2)
31
(8)
20
(52)
170

(5)
7
(1,042)
(225)
(7)
300

(2)
2
(380)
(79)
(2)
100

(3)
5
(662)
7
10
(146)
(5)
200

1
47
2,133

1
17
696

30
1,449

90
1,920

32
603

58
1,313

$

$

$

$

$

Six Months Ended June 30,

Pre-tax income (loss)/net income, including noncontrolling interests
Noncontrolling interest
Pre-tax income (loss)/net income attributable to AIG
Adjustments:
Uncertain tax positions and other tax adjustments
Deferred income tax valuation allowance releases
Changes in fair value of securities used to hedge
guaranteed living benefits
Changes in benefit reserves and DAC, VOBA andSIA related to net realized capital gains (losses)
Unfavorable (favorable) prior year development and related
amortization changes ceded under retroactive reinsurance agreements(Gain) loss on extinguishment of debt
Net realized capital losses
Noncontrolling interest on net realized capital losses(Income) loss from discontinued operations(Income) loss from divested businesses
Non-operating litigation reserves and settlements
Net loss reserve discount (benefit) charge
Pension expense related to a one-time lump sum payment
to former employees
Restructuring and other costs
Pre-tax operating income/After-tax operating income

12Pre-tax
$
3,394
3,394

2017
Tax Effect
$
1,073
1,073

After-tax$ 2,324(9)2,315

Pre-tax$ 2,6442,644

2016
Tax Effect
$
866
866

After-tax$ 1,732
(2)
1,730

-

(16)
21

16
(21)

-

(142)
2

142
(2)

(91)

(32)

(59)

(253)

(89)

(164)

(111)

(39)

(72)

24

8

16

265
(5)
184
160
(86)
235

93
(2)
85
34
(30)
81

172
(3)
99
5
(8)
126
(56)
154

(12)
90
64
(223)
(38)
291

(4)
31
7
(78)
(13)
99

(8)
59
57
(11)
57
(145)
(25)
192

1
228
4,174

1
80
1,349

148
2,816

278
2,865

98
785

180
2,078

$

$

$

$

$

$

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

Summary of Key Financial Metrics
Three Months Ended June 30,% Inc.
2017
2016(Dec.)
Income (loss) per common share:
Basic
Income from continuing operations
Income (loss) from discontinued operations$

Net income attributable to AIG$

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

Net income attributable to AIG
After-tax operating income attributable to AIG per diluted share (a)

$
$

1.21
0.01
1.22

$

1.18
0.01
1.19
1.53

$

Weighted average shares outstanding:
Basic
Diluted

925.8
948.2

Return on equity (a)Adjusted return on equity (b)6.1 %
10.5 %

As of period end:
Total AIG shareholders' equity
Accumulated other comprehensive income (AOCI)$$$

Six Months Ended June 30,% Inc.
2017
2016(Dec.)

1.73(0.01)
1.72(30.1) %NM(29.1)$

1.69(0.01)
1.68
1.15(30.2)
NM(29.2)
33.0 %$$$$

1,113.6
1,140.0

$

2.36
0.01
2.37
2.88

$

8.6 %
7.9 %

$
$

$

June 30, 2017
73,732
4,962
68,77014,28754,483

Total adjusted AIG shareholders' equity$

As of period end:
Book value per common share (c)Book value per common share, excluding AOCI (d)Adjusted book value per common share (e)June 30, 2017
$
81.62
$
76.12
$
60.31

1.57
(0.05)
1.52

54.1 %
NM
59.9

1.54
(0.05)
1.49
1.79

53.2
NM
59.1
60.9 %

1,135.1
1,163.1

6.2 %10.0 %

Deferred tax assets

3.9 %
6.2 %

$

$

June 30, 2016
89,946
8,259
81,687
15,614
66,073June 30, 2016
% Inc. (Dec.)$
83.08(1.8) %
$
75.45
0.9
$
61.03
(1.2)

903.4

Financial highlights - notes(a) Computed as Annualized net income (loss) attributable to AIG divided by average AIG shareholders' equity. Equity includes AOCI and DTA.
(b) Computed as Annualized After-tax Operating Income attributable to AIG divided by Adjusted Shareholders' Equity.
(c) Represents total AIG shareholders' equity divided by Total common shares outstanding.
(d) Represents total AIG shareholders' equity, excluding AOCI, divided by Total common shares outstanding.
(e) Represents Adjusted Shareholders' Equity, divided by Total common shares outstanding.

13

$

953.1
976.6

Total AIG shareholders' equity, excluding AOCI

Total common shares outstanding

2.42
0.01
2.43

1,082.7

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per share amounts)
Reconciliations of General Operating and Other Expenses
Three Months Ended
June 30,% Inc.
20172016 (Dec.)
General operating and other expenses, GAAP basis
Restructuring and other costs
Other expense related to retroactive reinsurance agreement
Pension expense related to a one-time lump sum payment to former employees
Non-operating litigation reserves
Total general operating and other expenses included in pre-tax operating
incomeLoss adjustment expenses, reported as policyholder benefits and losses incurred
Advisory fee expenses
Non-deferrable insurance commissions and other
Direct marketing and acquisition expenses, net of deferrals, and other
Investment expenses reported as net investment income and otherTotal general operating expenses, operating basis
Less: FX impact
Less: GOE of Advisor Group
Less: GOE of UGC$

Total general operating expenses, Operating basis, Ex. FX & GOE of AIG Advisor$
Group and UGC

142,182 $
(47)
(1)
74

2,586
(90)
5
-

(15.6) %
47.8
NM
NM
NM

2,208
296
(77)
(130)
(58)
9
2,248

2,501
350
(173)
(121)
(133)
15
2,439
12
25
55

(11.7)(15.4)
55.5
(7.4)
56.4
(40.0)
(7.8)
NM
NM
NM

2,347

(4.2) %

2,248$

Six Months Ended
June 30,% Inc.
20172016 (Dec.)$$

4,625 $
(228)
(1)
70

5,589
(278)
12
(3)

(17.2) %
18.0
NM
NM
NM

4,466
600
(154)
(262)
(170)
17
4,497

5,320
691
(490)
(243)
(277)
30
5,031
70
105

(16.1)(13.2)
68.6
(7.8)
38.6
(43.3)(10.6)
NM
NM
NM

4,856

(7.4) %

4,497$

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)($ in millions, except per share amounts)
Reconciliations of Normalized and Adjusted Return on Equity
Three Months Ended
June 30, 2017
Tax
Pre-tax
EffectAfter-tax
Return on Equity
Adjusted Return on equity (a)Adjustments to arrive at Normalized Return on Equity:
Catastrophe losses above (below) expectations(Better) worse than expected alternative returns (b)(Better) worse than expected DIB & GCM returns
Fair value changes on PICC investments
Life Insurance - IBNR death claims
Unfavorable (favorable) prior year loss reserve development
Normalized Return on Equity

Three Months Ended
June 30, 2016
Tax
Pre-tax
EffectAfter-tax

ROE

$

1,130

6.1 %

$

2,133 $

696 $

1,449

10.5 %

$

(157)
(111)
(142)
(6)
126
1,843 $

(56)
(38)
(49)
(2)
44
595 $

(101)
(73)
(93)
(4)
82
1,260

(0.7)
(0.6)
(0.7)
0.6
9.1 %

$

1,913

8.6 %

$

1,920 $

603 $

1,313

7.9 %

$

26
5
(42)
85
29
2,023 $

9
1
(14)
30
10
639 $

17
4
(28)
55
19
1,380

0.1
(0.1)
0.3
0.1
8.3 %

$ 73,901
4,372
14,436$ 55,093

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

ROE$ 89,232
6,892
16,220$ 66,120(a) After-tax operating income excludes Net income (loss) attributable to non-controlling interest of $(12) million and $4 million for the three months ended June 30, 2017 and2016, respectively.
(b) The expected rate of return on alternative investments used was 8% for all periods presented.

Pre-tax

Normalized Return on Equity
Average AIG Shareholders' equity
Less: Average AOCI
Less: Average DTA
Average adjusted shareholders' equity

ROE

$

2,315

6.2 %

$

4,174 $ 1,349 $

2,816

10.0 %

$

(268)
(95)
(294)
(102)
(187)
(65)
(28)
(10)
158
55
3,555 $ 1,132 $

(173)
(192)
(122)
(18)
103
2,414

(0.6)
(0.7)
(0.4)
(0.1)
0.4
8.6 %

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

Six Months Ended
June 30, 2017
Tax
EffectAfter-tax$ 74,700
3,991
14,547$ 56,162

Pre-tax

Six Months Ended
June 30, 2016
Tax
EffectAfter-tax

ROE

$

1,730

3.9 %

$

2,865 $

785 $

2,078

6.2 %

$

(111)
(39)
719
251
353
124
188
66
(25)
(9)
(31)
(11)
3,958 $ 1,167 $

(72)
468
229
122
(16)
(20)
2,789

(0.2)
1.4
0.7
0.4
(0.1)
(0.1)
8.3 %
$ 89,374
5,440
16,397$ 67,537(a) After-tax operating income also excludes Net income (loss) attributable to non-controlling interest of $9 million and $2 million for the six months ended June 30, 2017 and2016, respectively.
(b) The expected rate of return on alternative investments used was 8% for all periods presented.

15

American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation($ in millions, except per share amounts)
Reconciliations of Core Normalized and Adjusted Return on Equity
Three Months Ended
June 30,
2017
2016
Pre-tax operating income
Interest expense (benefit) on attributed financial debt$

Operating income before taxes
Income tax expense (benefit)
After-tax operating income
Adjustments to arrive at Normalized Return on Equity:
Catastrophe losses above (below) expectations(Better) worse than expected alternative returns(a)(Better) worse than expected DIB & GCM returns
Fair value changes on PICC investments
Unfavorable (favorable) prior year loss reserve development
Normalized after-tax operating income$

Ending attributed equity
Average attributed equity
Adjusted return on attributed equity
Normalized return on attributed equity(b)

$
$

1,702
(43)
1,745
561
1,184
(100)
(54)
(3)
(4)
83
1,106
44,57144,89810.5 %
9.9 %

$

$
$
$

1,713
(22)
1,735
507
1,228
18
10
1
34
5
1,296
51,331
51,2369.6 %10.1 %Six Months Ended
June 30,
2017
2016
$

$
$
$

(a) The expected rate of return on alternative investments used was 8% for all periods presented.
(b) Normalizing adjustments are tax effected using a 35% tax rate and computed based on average attributed equity for the respective periods.

16

3,401
(86)
3,487
1,117
2,370
(170)
(177)
(4)
(18)
114
2,115
44,57145,81610.3 %
9.2 %

$

$
$
$

2,860
(45)
2,905
786
2,119
(69)
402
3
52
(36)
2,471
51,331
51,9978.2 %9.5 %American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)
Reconciliations of Accident Year Loss Ratio, as Adjusted and Combined Ratio, as Adjusted
Three Months Ended
June 30,
2017
2016

Six Months Ended
June 30,
2017
2016

Commercial Insurance - Liability and Financial Lines
Loss ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of (additional) return premium on loss sensitive business
Adjustment for ceded premiums under reinsurance contracts related to prior accident years
Accident year loss ratio, as adjusted

76.1
(1.8)
(1.6)
72.7

70.4
(3.3)
67.1

76.0
(2.6)
(0.8)
72.6

69.7
(1.7)
68.0

Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of (additional) return premium on loss sensitive business
Adjustment for ceded premiums under reinsurance contracts related to prior accident years
Accident year combined ratio, as adjusted

102.4
(1.8)
(1.6)
99.0

95.8
(3.3)
92.5

103.9
(2.6)
(0.8)
100.5

96.3
(1.7)
94.6

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

70.8(11.1)
(2.5)
57.2

69.7
(18.0)
2.3
54.0

68.6
(11.9)
(0.1)
56.6

67.9
(14.9)
1.7
54.7

Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development
Accident year combined ratio, as adjusted

102.9(11.1)
(2.5)
89.3

101.4
(18.0)
2.3
85.7

100.4
(11.9)
(0.1)
88.4

100.4
(14.9)
1.7
87.2

Total Commercial Insurance
Loss ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of (additional) return premium on loss sensitive business
Adjustment for ceded premiums under reinsurance contracts related to prior accident years
Accident year loss ratio, as adjusted

73.8
(4.8)
(2.1)
(0.8)
66.1

70.2
(7.5)
(1.0)
61.7

72.8
(5.0)
(1.6)
(0.4)
65.8

68.9
(6.1)
(0.2)
62.6

Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development, net of (additional) return premium on loss sensitive business
Adjustment for ceded premiums under reinsurance contracts related to prior accident years
Accident year combined ratio, as adjusted

102.7
(4.8)
(2.1)
(0.8)
95.0

98.3
(7.5)
(1.0)
89.8

102.4
(5.0)
(1.6)
(0.4)
95.4

97.9
(6.1)
(0.2)
91.6

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

50.7
(0.1)
0.2
50.8

55.6
(2.1)
1.4
54.9

53.3
(0.5)
52.8

54.2
(1.6)
1.5
54.1

Combined ratio
Catastrophe losses and reinstatement premiums
Prior year development
Accident year combined ratio, as adjusted

91.1
(0.1)
0.2
91.2

97.0
(2.1)
1.4
96.3

93.8
(0.5)
93.3

95.9
(1.6)
1.5
95.8

17