FOR IMMEDIATE RELEASE

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

本稿は2017年11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。
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。

AIG、2017年第3四半期の決算を公表
2017年11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）は本⽇、2017年第3四半期の純損失が17億ドル、1株当たりでは1.91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4億6,200万ドル、希薄化後1株当たりでは
0.42ドルでした。2017年第3四半期の税引後営業損失は11億ドル、1株当たりでは1.22ドルになりました。前年同期の税引後営業利益は11億ドル、希薄化後
1株当たりでは1.01ドルでした。
AIG社⻑兼CEOのブライアン・デュパロウは以下のように述べました。「保険業界は第3四半期に未曽有の⼤規模災害に⾒舞われました。こうした災害の影
響を受けつつもAIGはバランスシートおよび資本基盤の強さを反映したレジリ
エンスを⽰しました。私はAIGの顧客に対する対応とコミットメントおよびAIGの同僚がこれらの事象の影響を最も受けた地域社会に対して提供した⽀援を⼼から誇りに思っています。また、AIGは主として2016年に発⽣した損害に関連する四半期毎の準備⾦⾒直しにおいて、第3四半期に利⽤可能となった追加情報に基づいて準備⾦の積み増しを⾏いました。AIGはコマーシャル・ライ
ンの保険引受（アンダーライティング）および保険引受ツールを強化すること、何よりも⼈材基盤を増強するための措置を講じることに関⼼を集中しており、
私は2018年を「アンダーライターの年」にすると宣⾔しました。この引受への関⼼強化およびこのほど発表したAIGの組織再編と⼀部経営メンバーの変更をもって、⻑期的に収益性の⾼い成⻑のためにAIGのより良いポジションを固める戦略を引き続き遂⾏していきます。」
注⽬に値する項⽬
異常災害損失 – 第3四半期の業績には、ハリケーン「ハービー」、「イルマ」
および「マリア」を主因とする税引前異常災害損失総額30億ドルが含まれていますが、この額は当社がこれまでに公表した損失推定額と⼀致しています。
主として2016 事故年度に発⽣した損害の⽀払準備⾦への繰り⼊れ –⽀払備⾦
は税引前で8億3,600万ドル（ナショナル・インデムニティー・カンパニー（NICO）との再保険合意に帰属する繰延利益の償却6,200万ドルを考慮後）増加しました。このうち7億500万ドルは主としてコマーシャル・ロング・テール
種⽬における早期の保険⾦発⽣額に対応する2016事故年度に関連するものです。
NICOとの再保険合意の対象となる⽀払準備⾦全体の当年度発⽣保険⾦はありませんでした。さらに、コマーシャル・インシュアランスの当年度の事故発⽣
年度ベースの損害率は4.9ポイント上昇しましたが、このうち3.3ポイントは前四半期以前に関連するものです。
コンシューマー・インシュアランスの着実な業績 – コンシューマー・インシュ
アランスの税引前営業利益は、第3四半期における個⼈向け損害保険の⼤幅な異常災害損失にもかかわらず、10億ドルとなりました。第3四半期に実施した保険数理上の仮定の年次⾒直しは2億8,400万ドルの戻⼊れにつながりました。
前年同期の戻⼊れは2億3,000万ドルでした。第3四半期の業績は主に想定失効
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FOR IMMEDIATE RELEASE
率の低下および堅調な株式市場のパフォーマンスを反映したものですが、これは個⼈向け退職給付事業における⻑期分離勘定の想定リターンの引き下げにより部分的に相殺されました。
費⽤削減 – 営業関連費⽤およびその他費⽤の合計（GOE）は前年同期⽐3億8,700万ドル（15.3%）減少し、21億ドルとなりました。オペレーティング・
ベースのGOEは、恒常ドル・ベースおよび2016年のユナイテッド・ギャラン
ティ・コーポレーション売却によるGOE削減を除き、組織の簡素化により11%減少しました。
レガシー戦略の実⾏ – 2017年 11⽉1⽇、AIGは残存していたライフセトルメ
ント・ポートフォリオの売却を完了し、2017年第4四半期に親会社AIGに売却
代⾦11億ドルを送⾦するとともに、レガシー資本のリターン90億ドルを実現することになります。
資本および流動性 – 2017年第3四半期にAIGは2億7,500万ドルの普通株式460万株および300万ドルのワラントを追加して買い戻しました。これ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 11⽉2⽇時点で約22億ド
ルとなりました。 AIGの親会社流動資産は67億ドルでした。2017年第3四半期に親会社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約5億ドルの配当を受け取りました。
ノンバンクSIFI指定の解除 – 2017年 9⽉、⾦融安定監督評議会（FSOC）は
AIGのシステム上重要なノンバンク⾦融機関としての指定を解除しました。
2017年第3四半期の業績概要*

9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

2016

純利益（損失）$(1,739)$462

希薄化後1株当たり純利益（損失）(a)$(1.91)$

0.42

税引後営業利益（損失）$(1,111)$

1,115

希薄化後1株当たり税引後営業利益（損失）(a)$(1.22)$

1.01

株主資本利益率（ROE）

(9.5)

%

2.1 %

調整後 ROE

(8.4)

%

6.9 %

標準化後 ROE

6.6

%

8.1 %

(11.6)

%

9.0 %

7.2

%

8.1 %

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)
$

80.62

$

85.02

その他の包括利益累計額を除く普通株式1株当たりブック・バリュー $

74.01

$

76.33

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) 損失を計上している期間については、基本的平均発⾏済普通株式を⽤いて希薄後1株当たり純利益（損失）を計算しています。

別段の記載がない限り、⽐較はすべて、2016年第3四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3四半期追加財務情報をご参照ください。AIG は2017年第4四半期に、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
2FOR IMMEDIATE RELEASE
スのセグメント分類から、損害保険事業と⽣命保険および退職給付事業の体制に移⾏させる予定です。
中核事業（CORE）
コマーシャル・インシュアランス概要 – 2017年第3四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、異常災害関連損失の増加を含む損害率の上昇、前年以前事故年度の当年度発⽣保険⾦の増加、主として財物保険および⽶国における賠償責任保険事業の調整後の当事故発⽣年度ベースの損害率の上昇、およびNICOとの再保険合意の資⾦調達の結果としての正味投資利益の減少を反映しています。これは費⽤減少によって部分的に相殺されました。
• 税引前損失には再保険考慮後の異常災害関連損失27億ドルおよび2016事故
年度に関連する6億9,700万ドルを含む前年以前事故年度の当年度発⽣保険⾦発
⽣額8億3,700万ドルが含まれています。前年以前事故年度の当年度発⽣保険⾦
は主として2016事故年度の⽶国における賠償責任保険事業およびファイナンシ
ャル・ラインの早期の保険⾦発⽣額ならびに2016事故年度を中⼼とする欧州における賠償責任保険事業およびフィナンシャル・ラインの⼤⼝保険⾦請求件数の増加に対応したものでした。これは企業向け損害保険の前年以前事故年度の当年度発⽣保険⾦戻⼊れにより部分的に相殺されました。
• 2017年第3四半期の損害率は168.4ポイントで、91.1ポイントの上昇となりました。この上昇分の約65.6ポイントは異常災害関連損失に関係するものです。事故発⽣年度ベースの調整済み損害率は10.4ポイント上昇の75.1ポイントとなりました。この上昇は、詳細な準備⾦評価⾒直しの結果として、財物保険
における⼤規模損失および⼩中規模損失の増加ならびに当社の⽶国の賠償責任保険における⼀部保険種⽬の事故発⽣当年度の損害の増加を反映しています。
• 2017年第3四半期の事業費率は、事業費削減のための戦略的⾏動の継続的実⾏を主因に、1.5ポイント低下し、27.0ポイントとなりました。
• コマーシャル・インシュアランスの正味収⼊保険料は、報告ベースおよび恒常ドル・ベースの双⽅で、13%減少しました。この減少のうち約4%は事業売却に関連したものです。減少の残り部分は2017年第3四半期を通じた戦略的ポートフォリオ⾏動の継続的実⾏に関連しています。

（単位：百万⽶ドル）
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（損失）引受に関する⽐率：
損害率
事業費率
コンバインド・レシオ
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

2017
$
$

9⽉30⽇までの3ヶ⽉間
2016
増減

3,770
(2,862)
168.4
27.0
195.4

$
$

2,175
(257)
113.1
25.2
138.3

3

$
$

$
$

4,354
685

(13) %
NM

77.3
28.5
105.8

91.1 pts
(1.5)
89.6

2,389
948

(9) %
NM

67.7
25.4
93.1

45.4 pts
(0.2)
45.2

FOR IMMEDIATE RELEASE
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

$
$

1,595
(2,605)

$
$

247.6
29.4
277.0

1,965
(263)

(19) %
NM

90.5
32.8
123.3

157.1 pts
(3.4)
153.7

コンシューマー・インシュアランス概要 – 2017年第3四半期のコンシューマー・インシュアランスは以下で取り上げるようにすべてのセグメントを通じて引き続き着実な基礎的業績を実現し、10億ドルの税引前営業利益を計上しました。
• 個⼈向け退職給付では、保険数理上の仮定の⾒直しによるネット・ポジティ
ブ調整の減少およびオルタナティブ投資利益の減少が、株式市場改善による運⽤資産の増加に伴う保険契約⼿数料収⼊の増加および基本的正味投資利益スプ
レッドの拡⼤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7億1,800万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、保険数理上の仮定の⾒直しによって前年同期のネッ
ト・ネガティブ調整からネット・ポジティブ調整になったこと、および運⽤資産の増加に伴う保険契約⼿数料収⼊の増加が、基本的正味投資利益スプレッドの縮⼩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・フローは引き続きマイナスでしたが、保険解約の減少
ならびに収⼊保険料および預かり資産の増加で改善しました。
• ⽣命保険では、保険数理上の仮定の⾒直しによって前年同期のネット・ネガ
ティブ調整からネット・ポジティブ調整になったこと、ユニバーサル⽣命保険の拡⼤による保険契約⼿数料収⼊の増加および事業費の減少が、正味投資利益の減少で⼀部相殺されました。⽣命保険料ならびに収⼊保険料および預かり資産は増加しました。定期⽣命保険、ユニバーサル⽣命保険ならびに⽶国外での⽣命保険および健康保険の成⻑が主因です。
• 個⼈向け損害保険では、異常災害損失の増加および前年同期に⽐べ前年以前
事故年度の当年度発⽣保険⾦戻⼊⾦の減少は、前年以前事故年度の当年度発⽣保険⾦発⽣額の改善およびオルタナティブ投資利益の増加により⼀部相殺されました。

（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4

20179⽉30⽇までの3ヶ⽉間
2016
増減

$

3,883 $
1,843
5,954
4,946
1,008

3,886
1,903
6,009
4,781
1,228

- %
(3)
(1)
3
(18)

$

212 $
973
1,343
625
718

220
1,009
1,380
460
920

(4) %
(4)
(3)
36
(22)

FOR IMMEDIATE RELEASE
団体向け退職給付
収⼊保険料および⼿数料
正味投資利益経常収益
給付および費⽤
税引前営業利益
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（損失）引受に関する⽐率：
損害率
事業費率
コンバインド・レシオ

$

121 $
524
702
453
249

108
12 %
554
(5)
717
(2)
503 (10)
214
16

$

727 $
260
1,000
888
112

640
267
921
975
(54)

14 %
(3)
9
(9)
NM

$
$

2,807 $
(71) $

2,922
148

(4) %
NM

64.3
41.3
105.6

56.3
41.2
97.5

8.0 pts
0.1
8.1

本プレスリリースには、将来の⾒通しに関する記述が含まれています。これらの記述は
過去の事実ではなく、将来の事象に関するAIGの⾒解のみを表しており、その多くは性
質上、本質的に不確実なものでありAIGに制御可能な範疇を超えています。実際の結果
は、これらの記述によって⽰唆される予想される結果と（場合によっては⼤きく）異なる可能性があります。実際の結果がかかる将来の⾒通しと（場合によっては⼤きく）異なる要因は、1934年証券取引所法に基づき、AIGが定期的に⽶国証券取引委員会に対して提出する書類に記載されます。

AIG グループは、世界の保険業界のリーダーであり、80 以上の国や地域でお客さま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さまの資産を守り、リスクマネジメントおよび確かなリタイヤメント・セキュリティをお届けします。
持株会社 AIG, Inc.はニューヨークおよび東京の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 THIRD QUARTER 2017 RESULTSNEW YORK, November 2, 2017 - American International Group, Inc. (NYSE: AIG) today
reported a net loss of $1.7 billion, or $1.91 per share, for the third quarter of 2017, compared to
net income of $462 million, or $0.42 per diluted share, in the prior-year quarter. After-tax
operating loss was $1.1 billion, or $1.22 per share, for the third quarter of 2017, compared toafter-tax operating income of $1.1 billion, or $1.01 per diluted share, in the prior-year quarter.
“In the third quarter, the insurance industry witnessed unprecedented catastrophic events.
AIG’s resilience in the wake of these events reflects the strength of our balance sheet andcapital position. I am extremely proud of our response and commitment to our customers, aswell as the assistance our colleagues provided to the communities most affected by these
events,” said Brian Duperreault, President and Chief Executive Officer. “We also strengthened
reserves based on additional information that became available in the third quarter through ourquarterly reserve review, which primarily related to the 2016 accident year. We are laser
focused on commercial underwriting and taking actions to enhance underwriting tools and,more importantly, our talent base – so much so that I have declared 2018 the ‘Year of theUnderwriter.’ With this increased focus on underwriting, and our recently announced changes
to AIG’s operating structure and executive leadership, we will continue to execute on our
strategy to better position AIG for long term profitable growth.”
NOTEWORTHY ITEMSCatastrophe Losses – Third quarter results included aggregate pre-tax catastrophe losses of$3.0 billion primarily from Hurricanes Harvey, Irma and Maria, which are in line with ourpreviously disclosed preliminary loss estimates.
Loss Reserve Development, Primarily in Accident Year 2016 – Prior accident year loss reserves
were strengthened by $836 million, pre-tax (net of $62 million for the amortization of thedeferred gain attributable to the NICO reinsurance agreement) of which $705 million related toaccident year 2016 in reaction to early unfavorable loss emergence, primarily in Commercial
long-tail lines. There was no overall development on the reserves subject to our reinsurance
agreement with NICO. Additionally, the current year Commercial Insurance accident year loss
ratio was increased by 4.9 points of which 3.3 points related to earlier quarters.
Consistent Consumer Insurance Results – Consumer pre-tax operating income was $1.0
billion despite significant third quarter Personal Insurance catastrophe losses. The annual
actuarial assumption review in the third quarter resulted in a benefit of $284 million compared
to $230 million in the prior year quarter. The third quarter largely reflected lower assumed
lapses and strong equity market performance, partially offset by a reduction in our long-term
separate account return assumption in the Individual Retirement business.
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Expense Reduction – General operating and other expenses (GOE) declined $387 million or
15.3% to $2.1 billion. GOE, operating basis, declined 11% on a constant dollar basis andexcluding the GOE reductions from the 2016 sale of United Guaranty Corporation, due toorganizational simplification.
Legacy Strategy Execution – On November 1, 2017 AIG closed on the sale of our remaining
life settlements portfolio resulting in the remittance of $1.1 billion of cash proceeds to AIG
Parent in fourth quarter 2017 and fulfilling the $9 billion return of Legacy capital.
Capital and Liquidity – In the third quarter, AIG repurchased 4.6 million common shares for$275 million and an additional $3 million of warrants. Approximately $2.2 billion remains
under our share repurchase authorization as of November 2, 2017. AIG Parent liquidity stood
at $6.7 billion. In the third quarter, AIG Parent received approximately $500 million of
distributions, including tax sharing payments, from insurance subsidiaries in the form of cash
and fixed maturity securities.
Removal of Nonbank SIFI Designation – In September, the Financial Stability OversightCouncil rescinded AIG’s designation as a nonbank Systemically Important Financial
Institution.
THIRD QUARTER FINANCIAL SUMMARY*
Three Months Ended
September 30,($ in millions, except per share amounts)
Net income (loss)
Net income (loss) per diluted share (a)After-tax operating income (loss)
After-tax operating income (loss) per diluted share (a)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 - CoreBook value per common share
Book value per common share, excluding accumulated other comprehensive income

$
$
$
$

$
$

2017
(1,739) $(1.91) $(1,111) $(1.22) $(9.5) %

2016
462
0.42
1,115
1.01
2.1 %

(8.4) %
6.6 %

6.9 %
8.1 %

(11.6) %7.2 %80.62 $
74.01 $

9.0 %
8.1 %
85.02
76.33

*Refer to the Comments on Regulation G and the tables that follow for a discussion of non-GAAP financial measures and thereconciliations of the non-GAAP financial measures to GAAP measures.
(a) For periods reporting a loss, basic average common shares outstanding are used to calculate net income (loss) per diluted share.

All comparisons are against the third quarter of 2016, unless otherwise indicated. Refer to the
AIG Third Quarter 2017 Financial Supplement which is posted on AIG's website in theInvestor Information section for further information. In the fourth quarter of 2017, AIG expects
to transition its Commercial Insurance and Consumer Insurance segments to General Insuranceand Life and Retirement, respectively.
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CORE INSURANCE
Commercial Insurance – In the third quarter, Commercial Insurance pre-tax operating income
reflected an elevated loss ratio which included higher catastrophe-related losses, higher
unfavorable prior year loss reserve development, and an elevated current accident year loss
ratio, as adjusted, primarily in Property and U.S. Casualty, and lower net investment income asa result of funding the NICO reinsurance agreement. This was partially offset by lower
expenses.
•

The pre-tax operating loss included $2.7 billion of catastrophe-related losses, net ofreinsurance and $837 million of unfavorable prior year loss reserve development of
which $697 million related to accident year 2016. The prior year loss development waslargely in reaction to early unfavorable loss emergence in U.S. Casualty and Financial
Lines in accident year 2016, and an increased number of large claims in European
Casualty and Financial Lines primarily in accident year 2016. This was partially offset
by favorable development in Commercial Property.

•

The loss ratio of 168.4 increased by 91.1 points in the third quarter of 2017.
Approximately 65.6 points of this increase relate to catastrophe-related losses. The
accident year loss ratio, as adjusted, of 75.1 increased by 10.4 points. This increasereflected higher Property severe and attritional losses and higher U.S. Casualty current
accident year losses in certain lines as a result of our detailed reserve valuation
reviews.

•

The expense ratio declined 1.5 points to 27.0 in the third quarter of 2017 primarily due
to continued execution on our strategic actions to reduce operating expenses.

•

Commercial Insurance net premiums written decreased by 13% on both a reported andconstant dollar basis. About 4% of the decrease was related to divestitures. The
remaining decrease was related to continued execution on our strategic portfolio
actions throughout the third quarter of 2017.

Three Months Ended September 30,($ in millions)
Total Commercial Insurance
Net premiums written
Pre-tax operating income (loss)
Underwriting ratios:
Loss ratio
Expense ratio
Combined ratio

3

2017
$
$

2016

Change3,770 $
(2,862) $

4,354
685

(13) %
NM

168.4
27.0
195.4

77.3
28.5
105.8

91.1 pts
(1.5)
89.6

FOR IMMEDIATE RELEASE

Three Months Ended September 30,($ in millions)
Liability and Financial Lines
Net premiums written
Pre-tax operating income (loss)
Underwriting ratios:
Loss ratio
Expense ratio
Combined ratio
Property and Special Risks
Net premiums written
Pre-tax operating loss
Underwriting ratios:
Loss ratio
Expense ratio
Combined ratio

2017
$
$

$
$

2016

Change2,175 $
(257) $

2,389
948

(9) %
NM

113.1
25.2
138.3

67.7
25.4
93.1

45.4 pts
(0.2)
45.2

1,595 $
(2,605) $

1,965
(263)

(19) %
NM

247.6
29.4
277.0

90.5
32.8
123.3

157.1 pts
(3.4)
153.7

Consumer Insurance – In the third quarter, Consumer Insurance continued to provide consistentunderlying operating results across all segments as discussed below and delivered $1.0 billion of
pre-tax operating income.

4•

In Individual Retirement, a lower net positive adjustment from the actuarial assumptions
review and a decline in alternative investment income, was partially offset by higher policy
fee income from growth in assets under administration driven by improvements in equity
markets and higher base net investment income spreads. Net flows declined to a negative$718 million for Individual Retirement, primarily reflecting the uncertainties surrounding
the impact and implementation of the DOL Fiduciary Rule.

•In Group Retirement, a net positive adjustment compared to a net negative adjustment in
the prior year quarter from the actuarial assumptions review and higher policy fee income
from growth in assets under administration, was partially offset by lower base net
investment income spreads and a decline in alternative investment income. Group
Retirement net flows continued to be negative but improved due to lower surrenders andhigher premiums and deposits.

•

In Life Insurance, a net positive adjustment compared to a net negative adjustment in
the prior year quarter from the actuarial assumptions review, higher policy fee income
from growth in universal life and lower general operating expenses, was partially offset
by lower net investment income. Life Insurance premiums and premiums and deposits
increased primarily due to growth in term life, universal life, and international life andhealth.

•In Personal Insurance, higher catastrophe losses and lower net favorable prior year loss
reserve development as compared to the prior year quarter was partially offset by
improved current accident year losses and higher alternative investment income.

FOR IMMEDIATE RELEASE

Three Months Ended September 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
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 (loss)
Personal Insurance
Net premiums written
Pre-tax operating income (loss)
Underwriting ratios:
Loss ratio
Expense ratio
Combined ratio

2017

2016

Change

$

3,883
1,843
5,954
4,946
1,008

$

3,886
1,903
6,009
4,781
1,228

- %
(3)
(1)
3
(18)

$

212 $
973
1,343
625
718

220
1,009
1,380
460
920

(4) %
(4)
(3)
36
(22)

$

121 $
524
702
453
249

108
554
717
503
214

12 %
(5)
(2)
(10)
16

$

727 $
260
1,000
888
112

640
267
921
975
(54)

14 %
(3)
9
(9)
NM

$
$

2,807 $
(71) $

2,922
148

(4) %
NM

64.3
41.3
105.6

56.3
41.2
97.5

8.0
0.1
8.1

pts

CONFERENCE CALL
AIG will host a conference call tomorrow, Friday, November 3, 2017, at 8:00 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.

5FOR IMMEDIATE RELEASE

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 realestate markets, state and 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, monetizations and/or acquisitions of businesses or assets;
restructuring of business operations, including anticipated restructuring charges and annual
cost savings;
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, business and regulatory changes;
strategies for customer retention, growth, product development, market position, financial
results and reserves;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 andunderwrites its products;
segments’ revenues and combined ratios; andmanagement succession and retention plans.

It is possible that AIG’s actual results and financial condition will differ, possibly materially, fromthe results and financial condition indicated in these projections, goals, assumptions and statements.
Factors that could cause AIG’s actual results to differ, possibly materially, from those in thespecific projections, goals, assumptions and statements include:
•
•
•
•
•
•
6

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 applicable requirements of any regulatory framework to which AIG is
subject, including as a global systemically important insurer;
concentrations in AIG’s investment portfolios;

FOR IMMEDIATE RELEASE

•
•
•
•
•
•
•
•

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’scompetitive position;
AIG’s ability to successfully dispose of, monetize and/or acquire businesses or assets;
judgments concerning the recognition of deferred tax assets;
judgments concerning estimated restructuring charges and estimated cost savings; 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 September 30, 2017 (which will be filed with theSEC), Part I, Item 2. MD&A in AIG’s Quarterly Reports on Form 10-Q for the quarterly
periods ended June 30, 2017 and 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 not under any obligation (and expressly disclaims any obligation) to update or alter any
projections, goals, assumptions, or other statements, whether written or oral, that may be madefrom time to time, whether as a result of new information, future events or otherwise.

##
COMMENT ON REGULATION G#

Throughout this press release, including the financial highlights, AIG presents its financial
condition and results of operations in the way it believes will be most meaningful andrepresentative of its business results. Some of the measurements AIG uses are “non-GAAP
financial measures” under Securities and Exchange Commission rules and regulations. GAAP is
the acronym for “generally accepted accounting principles” in the United States. The non-GAAP
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 Third Quarter 2017
Financial Supplement available in the Investor Information section of AIG’s website,www.aig.com.
Book Value per Common Share, Excluding Accumulated Other Comprehensive Income(AOCI) and Book Value per Common Share, Excluding AOCI and Deferred Tax Assets(DTA) (Adjusted Book Value per Common Share) 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
7

FOR IMMEDIATE RELEASE

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
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
8

FOR IMMEDIATE RELEASE

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
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 the9FOR IMMEDIATE RELEASE

understanding 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:••

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

See page 12 for the reconciliation of Net income attributable to AIG to After-tax Operating Income
Attributable to AIG.
Ratios: AIG, along with most property and casualty insurance companies, uses the loss ratio, theexpense ratio and the combined ratio as measures of underwriting performance. These ratios are
relative measurements that describe, for every $100 of net premiums earned, the amount of losses
and loss adjustment expenses (which for Commercial Insurance excludes net loss reserve discount),
and the amount of other underwriting expenses that would be incurred. A combined ratio of lessthan 100 indicates underwriting income and a combined ratio of over 100 indicates an underwriting
loss. AIG’s ratios are calculated using the relevant segment information calculated under GAAP,
10FOR IMMEDIATE RELEASE

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:a) Loss ratio = Loss and loss adjustment expenses incurred ÷ Net premiums earned(NPE)b) Acquisition ratio = Total acquisition expenses ÷ NPEc) General operating expense ratio = General operating expenses ÷ NPEd) Expense ratio = Acquisition ratio + General operating expense ratioe) Combined ratio = Loss ratio + Expense ratiof) 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]g) Accident year combined ratio = AYLR + Expense ratioh) Catastrophe losses (CATs) and reinstatement premiums = [Loss and loss adjustment
expenses incurred – (CATs)] ÷ [NPE +/(-) RIPs related to catastrophes] – Loss ratioi) 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 +/(-)
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 common stock is listed on the New York Stock Exchange and the Tokyo 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.

11

FOR IMMEDIATE RELEASEAIG 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.

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

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

Pre-tax income (loss)/net income (loss), including noncontrolling interests
Noncontrolling interest
Pre-tax income (loss)/net income (loss) attributable to AIG
Adjustments:
Uncertain tax positions and other tax adjustments
Deferred income tax valuation allowance releases
Changes in fair value of securities used to hedge
guaranteed living benefits
Changes in benefit reserves and DAC, VOBA andSIA related to net realized capital gains (losses)
Unfavorable (favorable) prior year development and related
amortization changes ceded under retroactive reinsurance agreements(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 (loss)/After-tax operating income (loss)

Pre-tax income (loss)/net income (loss), including noncontrolling interests
Noncontrolling interest
Pre-tax income (loss)/net income (loss) attributable to AIG
Adjustments:
Uncertain tax positions and other tax adjustments
Deferred income tax valuation allowance releases
Changes in fair value of securities used to hedge
guaranteed living benefits
Changes in benefit reserves and DAC, VOBA andSIA related to net realized capital gains (losses)
Unfavorable (favorable) prior year development and related
amortization changes ceded under retroactive reinsurance agreements(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

13

Three Months Ended September 30,
2017
2016
Pre-tax
Tax Effect After-tax
Pre-tax
Tax Effect$ (2,803) $ (1,091) $ (1,714) $
737 $
304
(25)
(2,803)(1,091)(1,739)
737
304

$

$

$

After-tax
$
465
(3)
462

-

(11)
2

11
(2)

-

(42)
2

42
(2)

(26)

(9)

(17)

(17)

(6)

(11)

(84)

(29)

(55)

67

24

43

(7)
1
922
13
48

(2)
1
316
7
20

(5)
606
1
1
6
28

(3)
(14)
765
(128)
(5)
32

(1)
(5)
210
(45)
(2)
14

(2)
(9)
555
(29)
(3)
(83)
(3)
18

49
31
(1,856) $1610(770) $

33
21
(1,111)

210
1,644

73
526

137
1,115

Pre-tax
591
591

$

$

Nine Months Ended September 30,
2017
2016
Tax Effect After-tax
Pre-tax
Tax Effect$(18) $
610 $ 3,381 $
1,170
(34)
(18)
576
3,381
1,170

$

After-tax$ 2,197
(5)
2,192

-

(27)
23

27
(23)

-

(184)
4

184
(4)

(117)

(41)

(76)

(270)

(95)

(175)

(195)

(68)

(127)

91

32

59

258
(4)
1,106
173
(86)
283

91
(1)
401
41
(30)
101

167
(3)
705
6
(7)
132
(56)
182

(15)
76
829
(351)
(43)
323

(5)
26
217
(123)
(15)
113

(10)
50
612
(40)
54
(228)
(28)
210

50
259
2,318

17
90
579

33
169
1,705

488
4,509

171
1,311

317
3,193

$

$

$

$

$

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 September 30,% Inc.
2017
2016(Dec.)
Income (loss) per common share:
Basic
Income (loss) from continuing operations
Income (loss) from discontinued operations$

Net income (loss) attributable to AIG$

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

Net income (loss) attributable to AIG
After-tax operating income (loss) attributable to AIG per diluted share (a)$$(1.91)(1.91)$(1.91)(1.91)(1.22)$

Weighted average shares outstanding:
Basic
Diluted (a)(b)

908.7
908.7

Return on equity (c)Adjusted return on equity (d)(9.5) %
(8.4) %

As of period end:
Total AIG shareholders' equity
Accumulated other comprehensive income (AOCI)
Total AIG shareholders' equity, excluding AOCI
Deferred tax assets
Total adjusted AIG shareholders' equity

As of period end:
Book value per common share (e)Book value per common share, excluding AOCI (f)Adjusted book value per common share (g)Total common shares outstanding$$$

Nine Months Ended September 30,% Inc.
2017
2016(Dec.)

0.43
0.43

NM %
NM
NM

$

0.42
0.42
1.01

NM
NM
NM
NM %

$

$

$
$

1,071.3
1,102.4

0.60
0.01
0.61

$

0.59
0.01
0.60
1.77

$

$

$
$

938.1
961.3

2.1 %
6.9 %

September 30, 201772,468
5,939
66,52914,897
51,632$September 30, 2017
$
80.62
$
74.01
$
57.44
898.9

(70.3) %NM(69.0)

1.97(0.05)
1.92
2.79(70.1)
NM(68.8)(36.6) %1,113.7
1,142.7

1.0 %
4.1 %

$

2.02
(0.05)
1.97

3.3 %
6.4 %

$

September 30, 2016
88,663
9,057
79,606$

15,56764,039September 30, 2016
% Inc. (Dec.)$
85.02(5.2) %
$
76.33
(3.0)
$
61.41
(6.5)
1,042.9

Financial highlights - notes(a) For the quarter ended September 30, 2017, because we reported a net loss and an after-tax operating loss, all common stock equivalents are anti-dilutive and are therefore
excluded from the calculation of diluted shares and diluted per share amounts. The shares excluded from these calculations were 22,459,868 shares.
(b) Diluted shares in the diluted EPS calculation represent basic shares for the three months ended September 30, 2017 due to the net loss in that period.
(c) Computed as Annualized net income (loss) attributable to AIG divided by average AIG shareholders' equity. Equity includes AOCI and DTA.
(d) Computed as Annualized After-tax Operating Income attributable to AIG divided by Adjusted Shareholders' Equity.
(e) Represents total AIG shareholders' equity divided by Total common shares outstanding.
(f) Represents total AIG shareholders' equity, excluding AOCI, divided by Total common shares outstanding.
(g) Represents Adjusted Shareholders' Equity, divided by Total common shares outstanding.

14

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
September 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

152,149 $
(31)
(49)
-

2,536
(210)
(4)
2

(15.3) %
85.2
NM
NM
NM

2,069
289
(84)
(148)
(56)
32
2,102

2,324
340
(76)
(107)
(52)
15
2,444
19
61

(11.0)(15.0)(10.5)(38.3)(7.7)
113.3(14.0)
NM
NM
NM

2,364

(11.1) %2,102$

Nine Months Ended
September 30,% Inc.
20172016 (Dec.)$$

6,774 $
(259)
(50)
70

8,125
(488)
8
(1)

(16.6) %
46.9
NM
NM
NM

6,535
889
(238)
(410)
(226)
49
6,599

7,644
1,031
(566)
(350)
(329)
45
7,475
19
70
166

(14.5)(13.8)
58.0(17.1)
31.3
8.9(11.7)
NM
NM
NM

7,220

(8.6) %

6,599$

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
September 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
Update of actuarial assumptions
Life Insurance - IBNR death claims
Unfavorable (favorable) prior year loss reserve development
Normalized Return on Equity

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

ROE$(1,739)(9.5) %$

(1,856) $(770) $

(1,111)(8.4) %

$

2,654
(103)
(42)
(30)
(270)
845
1,198 $

928
(35)
(15)
(10)
(94)
296
300 $

1,726
(68)
(27)
(20)
(176)
549
873

13.0
(0.5)
(0.2)
(0.1)
(1.3)
4.1
6.6 %

$

462

2.1 %

$

1,644 $

526 $

1,115

6.9 %

$

(108)
(70)
(104)
(47)
384
262
1,961 $

(38)
(25)
(36)
(16)
134
92
637 $

(70)
(45)
(68)
(31)
250
170
1,321

(0.4)
(0.3)
(0.4)
(0.2)
1.5
1.0
8.1 %

$ 73,100
5,451
14,592$ 53,057

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

ROE$ 89,305
8,658
15,591$ 65,056(a) After-tax operating income excludes Net income (loss) attributable to non-controlling interest of $25 million and $3 million for the three months ended September 30, 2017and 2016, respectively.
(b) The expected rate of return on alternative investments used was 8% for all periods presented.

Pre-tax

Nine Months Ended
September 30, 2017
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
Update of actuarial assumptions
Life Insurance - IBNR death claims
Unfavorable (favorable) prior year loss reserve development
Normalized Return on Equity
Average AIG Shareholders' equity
Less: Average AOCI
Less: Average DTA
Average adjusted shareholders' equity

ROE

$

576

1.0 %

$

2,318 $

579 $

1,705

4.1 %

$

2,386
833
(397)
(137)
(229)
(80)
(58)
(20)
(270)
(94)
1,003
351
4,753 $ 1,432 $

1,553
(260)
(149)
(38)
(176)
652
3,287

3.8
(0.6)
(0.4)
(0.1)
(0.4)
1.6
8.0 %
$ 74,142
4,477
14,635$ 55,030

Pre-tax

Nine Months Ended
September 30, 2016
Tax
EffectAfter-tax

ROE

$

2,192

3.3 %

$

4,509 $ 1,311 $

3,193

6.4 %

$

(218)
(76)
650
227
248
87
140
49
384
134
(25)
(9)
231
81
5,919 $ 1,804 $

(142)
423
161
91
250
(16)
150
4,110

(0.3)
0.8
0.3
0.2
0.5
0.3
8.2 %
$ 89,196
6,344
16,189$ 66,663(a) After-tax operating income also excludes Net income (loss) attributable to non-controlling interest of $34 million and $5 million for the nine months ended September 30,
2017 and 2016, respectively.
(b) The expected rate of return on alternative investments used was 8% for all periods presented.

16

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
September 30,
2017
2016
Pre-tax operating income (loss)
Interest expense (benefit) on attributed financial debt$

Operating income (loss) before taxes
Income tax expense (benefit)
After-tax operating income (loss)
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
Update of actuarial assumptions
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)$$(2,142)(42)(2,100)(849)(1,251)
1,727
(49)
(20)
(185)
550
772
41,751
43,161(11.6) %
7.2 %

$

$
$
$

1,743
(32)
1,775
599
1,176
(69)
(33)
1
(31)
(149)
166
1,061
52,95352,1429.0 %8.1 %Nine Months Ended
September 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.

17

1,259
(128)
1,387
268
1,119
1,557
(226)
(4)
(38)
(185)
664
2,887
41,75144,800
3.3 %
8.6 %

$

$
$
$

4,603
(77)
4,680
1,385
3,295
(138)
369
4
21
(149)
130
3,532
52,95352,2378.4 %9.0 %American International Group, Inc.
Selected Financial Data and Non-GAAP Reconciliation (continued)
Reconciliations of Accident Year Loss Ratio, as Adjusted and Combined Ratio, as Adjusted
Three Months Ended
September 30,
2017
2016

Nine Months Ended
September 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

113.1
(0.9)
(34.1)
78.1

67.7
(0.2)
0.5
68.0

88.8
(0.3)
(13.5)
(0.5)
74.5

69.1
(0.1)
(1.0)
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

138.3
(0.9)
(34.1)
103.3

93.1
(0.2)
0.5
93.4

115.7
(0.3)
(13.5)
(0.5)
101.4

95.3
(0.1)
(1.0)
94.2

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

247.6(172.0)
(4.9)
70.7

90.5
(13.3)(17.3)
59.9

127.5(64.6)
(1.7)
61.2

75.2
(14.3)(4.5)
56.4

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

277.0(172.0)
(4.9)
100.1

123.3
(13.3)(17.3)
92.7

158.5(64.6)
(1.7)
92.2

107.7
(14.3)(4.5)
88.9

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

168.4(71.2)(22.1)
75.1

77.3
(5.6)
(7.0)
64.7

105.2
(27.5)
(8.5)
(0.3)
68.9

71.5
(5.9)
(2.4)
63.2

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

195.4(71.2)(22.1)
102.1

105.8
(5.6)
(7.0)
93.2

133.9
(27.5)
(8.5)
(0.3)
97.6

100.3
(5.9)
(2.4)
92.0

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

64.3(10.6)
53.7

56.3
(0.9)
1.1
56.5

57.0
(3.9)
53.1

54.9
(1.4)
1.5
55.0

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

105.6(10.6)
95.0

97.5
(0.9)
1.1
97.7

97.8
(3.9)
93.9

96.3
(1.4)
1.5
96.4

18