American International : 2026 First Quarter Results

Published: 2026-05-01 08:23:15 ET AIG

Published on 05/01/2026 at 08:23 am EDT

Financial Results Presentation

May 1, 2026

Net income per diluted share of $1.41, an increase of 22% year-over-year; Adjusted after-tax income* (AATI) per diluted share of $2.11, an increase of 80% year-over-year

General Insurance net premiums written of $5.6 billion, an increase of 24% year-over-year on a reported basis, or 18% on a constant dollar basis*, driven by 21%* growth in Global Commercial and 11%* growth in Global Personal

General Insurance underwriting income of $774 million, more than tripled, or increased 219% year-over-year

General Insurance combined ratio of 87.3%, an 850 basis point improvement year-over-year; Accident year combined ratio, as adjusted* (AYCR) of 86.6%, a 120 basis point improvement

Net investment income (NII) of $712 million, a decrease of 36% year-over-year; NII on an adjusted pre-tax income* (APTI) basis of $915 million, an increase of 8%

Return on equity (ROE) of 7.5% and Core Operating ROE* of 12.2%

Returned $760 million of capital to shareholders, including $519 million of share repurchases and $241 million of dividends in the quarter

On April 30, AIG's Board of Directors declared a cash dividend of $0.50 per share on AIG common stock, an 11% increase from prior quarterly dividends, marking the fourth consecutive year of 10%+ dividend increases

On February 6, AIG completed the acquisition of a 35% equity interest in Convex Group Limited and a 9.9% ownership stake in its majority shareholder Onex Corporation

* Refers to financial measure not calculated in accordance with generally accepted accounting principles (Non-GAAP); definitions and abbreviations of Non-GAAP measures and reconciliations to their closest GAAP measures can be found in this presentation under the heading Glossary of Non-GAAP Financial Measures and Non-GAAP Reconciliations.

"AIG entered 2026 with significant momentum and delivered outstanding first quarter results, highlighting the strength of our underwriting capabilities and sustained earnings momentum across our businesses."

- Peter Zaffino, AIG Chairman & CEO

Financial Highlights Segment Results Investments

Capital Targets & Performance

AATI per diluted share of $2.11 increased 80% from the prior year quarter

Reported

$5.6B

24%

vs 1Q25

Net Premiums Written (NPW)

87.3%

850 bps

vs 1Q25

Calendar Year Combined Ratio

$1.41

22%

vs 1Q25

Net Income per Diluted Share

$75.82

vs 1Q25

Book Value per Share

7.5%

80 bps

vs 1Q25

Return on Equity

Adjusted*

$5.6B

18%

vs 1Q25

NPW on a constant dollar basis

86.6%

120 bps

vs 1Q25

Accident Year Combined Ratio, as adj.

$2.11

80%

vs 1Q25

Adjusted After-tax Income per Diluted Share

$70.85

vs 1Q25

Adjusted Tangible Book Value per Share*

12.2%

450 bps

vs 1Q25

Core Operating Return on Equity

Financial Highlights Segment Results Investments

Capital Targets & Performance

Exceptional premium growth while improving underlying underwriting margins

Key Financials

Net Premiums Written ($M)

GI NPW Growth

($M)

1Q25

1Q26

Change

Net premiums written Net premiums earned

Loss and loss adjustment expense Acquisition expenses

General operating expenses (GOE)

Underwriting income (loss) Net investment income

Amortization of intangible assets including renewal rights(1)

Adjusted pre-tax income(1)

Catastrophe-related losses, net of reinsurance

Unfavorable (Favorable) prior year loss development (PYD), net of reinsurance

Underwriting Ratios:

Accident year loss ratio, as adjusted* (AYLR) Loss ratio

Expense ratio

Calendar year combined ratio

Accident year combined ratio, as adjusted

$4,526

$5,599

24%

$5,769

$6,052

$3,766

$3,509

(7)%

$1,057

$1,051

(1)%

$703

$718

$243

$774

219%

$736

$864

17%

$(4)

$(10)

150%

$975

$1,628

67%

$520

$180

$(340)

$(64)

$(153)

$(89)

57.3%

0 bps

65.3%

58.0%

(730) bps

30.5%

29.3%

(120) bps

95.8%

87.3%

(850) bps

87.8%

86.6%

(120) bps

$4,526

+24% / +18% FX Adj.*

$5,599

$1,174

$2,027

$1,325

$1,605

$2,450

$1,544

1Q25 1Q26

Accident Year Combined Ratio, as adjusted

AYCR

87.8%

(120) bps

86.6%

12.2%

11.9%

18.3%

17.4%

57.3%

1Q25

AYLR, As Ad

j Acq. Ratio

1Q26

GOE Ratio

1. In the first quarter of 2026, AIG realigned and began reporting Amortization of intangible assets in General Insurance from Other Operations; historical results have been recast to reflect these changes.

Financial Highlights Segment Results Investments

Capital Targets & Performance

Exceptional growth in net premiums written and underwriting income

Key Financials

Net Premiums Written ($M)

NPW Growth

$1,174

$1,605

+37% / +36% FX Adj.

1Q25 1Q26

Accident Year Combined Ratio, as adjusted

AYCR

9.2%

12.9%

9.9%

12.5%

62.2%

63.1%

($M)

1Q25

1Q26

Change

Net premiums written

$1,174

$1,605

37%

Net premiums earned

$2,124

$2,253

Loss and loss adjustment expense

$1,526

$1,421

(7)%

Catastrophe-related losses, net of reinsurance

$253

$108

$(145)

Unfavorable (Favorable) PYD, net of reinsurance

$(50)

$(104)

$(54)

Acquisition expenses

$274

$281

General operating expenses

$195

$224

15%

Underwriting income (loss)

$129

$327

153%

Underwriting Ratios:

Accident year loss ratio, as adjusted

62.2%

63.1%

90 bps

Loss ratio

71.8%

63.1%

(870) bps

Expense ratio

22.1%

22.4%

30 bps

Calendar year combined ratio

93.9%

85.5%

(840) bps

Accident year combined ratio, as adjusted

84.3%

85.5%

120 bps

84.3%

120 bps

85.5%

1Q25 1Q26

Financial Highlights Segment Results Investments

Capital Targets & Performance

Outstanding portfolio delivering consistently strong underwriting results

($M)

1Q25

1Q26

Change

Net premiums written

$2,027

$2,450

21%

Net premiums earned

$2,051

$2,187

Loss and loss adjustment expense

$1,178

$1,246

Catastrophe-related losses, net of reinsurance

$71

$44

$(27)

Unfavorable (Favorable) PYD, net of reinsurance

$(14)

$(25)

$(11)

Acquisition expenses

$339

$363

General operating expenses

$294

$300

Underwriting income (loss)

$240

$278

16%

Underwriting Ratios:

Accident year loss ratio, as adjusted

54.6%

54.8%

20 bps

Loss ratio

57.4%

57.0%

(40) bps

Expense ratio

30.8%

30.3%

(50) bps

Calendar year combined ratio

88.2%

87.3%

(90) bps

Accident year combined ratio, as adjusted

85.4%

85.1%

(30) bps

Key Financials

Net Premiums Written ($M)

NPW Growth

$2,027

$2,450

+21% / +12% FX Adj.

1Q25 1Q26

Accident Year Combined Ratio, as adjusted

AYCR

85.4%

(30) bps

85.1%

14.3%

13.7%

16.5%

16.6%

54.6%

54.8%

1Q25

AYLR, As Adj

Acq. Ratio

1Q26

GOE Ratio

Financial Highlights Segment Results Investments

Capital Targets & Performance

Continued improvement in Accident Year Combined Ratio, as adjusted

Key Financials

Net Premiums Written ($M)

NPW Growth

$1,325

$1,544

+17% / +11% FX Adj.

1Q25 1Q26

Accident Year Combined Ratio, as adjusted

($M)

1Q25

1Q26

Change

Net premiums written

$1,325

$1,544

17%

Net premiums earned

$1,594

$1,612

Loss and loss adjustment expense

$1,062

$842

(21)%

Catastrophe-related losses, net of reinsurance

$196

$28

$(168)

Unfavorable (Favorable) PYD, net of reinsurance

$(24)

Acquisition expenses

$444

$407

(8)%

General operating expenses

$214

$194

(9)%

Underwriting income (loss)

$(126)

$169

Underwriting Ratios:

Accident year loss ratio, as adjusted

54.3%

52.7%

(160) bps

Loss ratio

66.6%

52.2%

(1,440) bps

Expense ratio

41.3%

37.2%

(410) bps

Calendar year combined ratio

107.9%

89.4%

(1,850) bps

Accident year combined ratio, as adjusted

95.6%

89.9%

(570) bps

95.6%

AYCR

13.4%

27.9%

12.0%

25.2%

54.3%

52.7%

(570) bps

89.9%

1Q25 1Q26

Financial Measures and Non-GAAP Reconciliations. 7

Financial Highlights Segment Results Investments

Capital Targets & Performance

Change

Other Operations Adjusted Pre-tax Loss (APTL)

($M)

1Q25

4Q25

1Q26

YoY

QoQ Change

Net investment income and other (1)(2)

$110

$75

$54

$(56)

$(21)

Corporate and other general operating expenses

$(85)

$(99)

$(79)

$20

Interest expense

$(91)

$(100)

$(9)

Other Operations APTL(3) $(66) $(124) $(125) $(59) $(1)

Includes dividends received from Corebridge of $31 million, $12 million, and $6 million in the three months ended March 31, 2025, December 31, 2025, and March 31, 2026, respectively, and investment income in joint ventures with strategic partners.

Includes third party management fees and other expenses.

In the first quarter of 2026, AIG realigned and began reporting Amortization of intangible assets in General Insurance from Other Operations; historical results have been recast to reflect these changes.

Financial Highlights Segment Results Investments

Capital Targets & Performance

Well-diversified investment portfolio with solid credit characteristics

AIG Investment Portfolio ($B)

Other Operations

AIG NII on an APTI Basis ($M)

$0.4

$7.0

$2.2

$3.4

$4.6

$86.3B

$1.6

$845

$954 $915

$67.0

General Insurance (GI)

$683

$53

$795

$818

$109

$46

$86

$51

$73

1Q25 4Q25 1Q26

Note: Amounts shown are as of March 31, 2026 and exclude Fortitude Re funds withheld assets and run-off businesses.

At March 31, 2026, includes AIG's remaining interest in Corebridge that changed following loss of significant influence, transitioned from an equity method investment recorded in Other invested assets to an equity security, at fair value.

Includes investment income from GI FMS - AFS and GI Mortgage and other loans receivable.

Includes investment income from GI Other Investment Assets and GI Short-term Investments as well as investment expenses.

Includes consolidations and eliminations, and economic hedges. 9

Financial Highlights Segment Results Investments

Capital Targets & Performance

Strong growth in GI Net Investment Income on an APTI basis of 17% year-over-year

Normalized Yields (%) and Investment Income ($M) on GI Core Fixed Income Portfolio(1)

$643

$688

$691

$679

$664

$656

$648

$651

$683

$757

$789

$792

$801

4.58%

4.59%

4.61%

3.41%

3.64%

3.72%

3.82%

3.85%

3.92%

3.89%

3.91%

4.10%

4.42%

1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26

GI Alternative Income ($M)

Annualized Yield

8.8%

4.1%

1.8%

3.9%

5.2%

3.3%

4.3%

6.9%

4.2%

4.6%

13.6%

4.1%

0.7%

$95

$44

$19

$41 $54 $33 $43

$72

$43 $48

$137

$38

1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26

Note: Amounts shown are as of March 31, 2026 and exclude Fortitude Re funds withheld assets.

Comprised of Investment Income from FMS - AFS and Mortgage and other loans receivable; excluding call and tender income and Commercial Mortgage Loan (CML) prepayment fees, assets that are no longer part of ongoing AIG operations and have been transferred to discontinued operations, and other.

Annualized yield is calculated by taking the quarterly annualized investment income as defined in the above footnote, divided by the average quarterly amortized cost of FMS - AFS and average quarterly annualized carrying value of Mortgage and other loans receivable for the interim periods. At 6/30/2023, Validus Re FMS - AFS, at fair value were reclassified to Assets held for sale. The Annualized yield for the three months ended 12/31/2023, 9/30/2023, 6/30/2023, and 3/31/2023 is calculated excluding Validus investment income of $11M, $35M, $44M, and $31M, respectively. The Amortized costs for Validus Fixed Maturity Securities are excluded from the Annualized Yield calculation, $0M, $0M, $0M, $4,816M and $4,609M at 12/31/2023, 9/30/2023, 6/30/2023, 3/31/2023, and 12/31/2022, respectively. In the fourth quarter of 2024, AIG realigned and began excluding the net results of run-off

businesses. In the third quarter of 2025, AIG began excluding the net results of run-off businesses previously reported in General Insurance. Historical results have been recast to reflect these changes. 10

Financial Highlights Segment Results Investments

Capital Targets & Performance

Total debt to total adjusted capital ratio of 17.7% and strong insurance company capitalization

March 31, 2026

Capital Structure ($B) Capital Ratios

$49.4

Total Equity:

$40.4

$(1.5)

$41.9

$9.0

Hybrids / Total capital 1.0%

Financial debt / Total capital 17.2%

Total debt / Total capital 18.2%

Adjusted capital impact* (0.5)%

Total debt / Total adjusted capital* 17.7%

Risk-Based Capital (RBC) Ratios(3)

U.S. General Insurance Companies

March 31, 2026

Year-end 2024 407% (ACL)

Year-end 2025 453% (ACL)

Includes changes in foreign exchange.

AIG Investments AOCI $(2.0)B less $(0.5)B of cumulative unrealized loss related to Fortitude Re funds withheld assets.

The inclusion of RBC measures is intended solely for the information of investors and is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities. ACL is defined as Authorized Control Level.

Financial Highlights Segment Results Investments

Capital Targets & Performance

Continued successful execution of balanced capital management

Share Repurchases ($M) Total Debt / Total Adjusted Capital(1)

Aggregate share repurchases of $6.3B

Maintained outstanding leverage ratio

$2,231

$1,787

$1,234

$567

$519

16.6%

17.4%

17.7%

1Q25 2Q25 3Q25 4Q25 1Q26 1Q25 2Q25 3Q25 4Q25 1Q26

Aggregate share repurchases of $6.3B, or 80M shares over the last five quarters, representing 13% of shares outstanding on December 31, 2024

Shares outstanding as of March 31, 2026 were 532.9M

17.7% total debt / total adjusted capital ratio supporting financial flexibility

No near term maturities over $50M in any given quarter until 2027

1. Total adjusted capital includes AIG adjusted common shareholders' equity, hybrid debt and financial debt.

Financial Measures and Non-GAAP Reconciliations. 12

Financial Highlights Segment Results Investments

Capital Targets & Performance

Making solid progress on our ambitious financial targets

PERFORMANCE METRICS

3-year Target

2025 - 20271

Operating EPS CAGR

20%+

Core Operating ROE

10% - 13%

GI Expense Ratio

<30%

Dividends Per Share CAGR

10%+

(2025-2026)

1. Forecasts are based on estimates and assumptions and are subject to market conditions. Operating EPS CAGR refers to the target growth over the three year period (2025-2027). Core Operating ROE references the expected target range throughout the three year period (2025-2027). GI Expense

Ratio references the target ratio to be reached within the three year period (2025-2027). Dividends Per Share CAGR refers to the target growth over 2025-2026. 13

Financial Highlights Segment Results Investments

Capital Targets & Performance

Transformational Operating EPS Growth

More than replaced EPS from divested businesses

Replaced EPS from Divested Businesses

2024-2027F CAGR +20%2

Corebridge and Validus Re contributed 50%+ of EPS1

$6.82

2025 Growth

43%

$4.58

$2.79

$0.09

$1.70

$2.52

$2.05

$0.47

$5.70

$3.10

$0.13

$2.47

$5.09

$2.40

$0.31

$2.38

$2.40

$0.56

$3.86

2022-2024

CAGR 44%

$4.95

$7.09

2019 2020 2021 2022

2023 2024 2025

2027F2

2019-2021 reflects estimates for Corebridge (CRBG). 2022 and 2023 include restatements to exclude Other Operations runoff.

Future projection of EPS growth is based on estimates, assumptions and management's current expectations and is not a guarantee of future performance. 2027F bar graphic is for illustrative purposes only and is not to scale. See page 16 for a cautionary statement on forward-looking information. 14

Financial Highlights Segment Results Investments

Capital Targets & Performance

On track to achieve General Insurance Expense Ratio target of below 30%

Fully Loaded General Insurance Expense Ratio*1 (%)

18.4%

16.6%

19.2%

16.6%

19.9%

16.7%

20.5%

16.3%

36.8% 36.6% 35.8% 35.0%

18.6%

13.1%

18.8%

13.2%

18.8%

13.6%

18.5%

14.6%

33.1% 32.4% 32.0% 31.7% 31.3% 31.1% 30.8%

18.4%

12.9%

18.1%

13.0%

17.9%

12.9%

2019 2020 2021 2022 2023 2024 1Q25 TTM2 2Q25 TTM 3Q25 TTM 4Q25 TTM 1Q26 TTM

4Q25 TTM and 1Q26 TTM are on a reported basis. All other periods are adjusted for the sales of Crop Risk Services (CRS), Validus Re, and global personal travel and assistance business as well as Other Operations GOE attributable to General Insurance, which is computed as Other Operations GOE less $350M of Parent company expense. Fully Loaded Expense Ratio (%) = Expense Ratio + Attributed Other Operations GOE Ratio. Refer to page 26 for reconciliation.

Trailing twelve months (TTM) metrics represent the past four consecutive quarters or past twelve months.

Financial Measures and Non-GAAP Reconciliations. 15

Cautionary Statements

Certain statements in this presentation and other publicly available documents may include, and members of management may from time to time make and discuss, statements which, to the extent they are not statements of historical or present fact, may constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are intended to provide management's current expectations or plans for future operating and financial performance, based on assumptions currently believed to be valid and accurate. Forward-looking statements are often preceded by, followed by or include words such as "will," "believe," "anticipate," "expect," "expectations," "intend," "strive," "plan," "strategy," "prospects," "project," "anticipate," "should," "guidance," "outlook," "view," "target," "goal," "estimate" and other words of similar meaning in connection with a discussion of future operating or financial performance. These statements may include, among other things, projections, goals and assumptions that relate to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expense reduction efforts, the outcome of contingencies such as legal proceedings, anticipated organizational, business or regulatory changes, the effect of catastrophic events, both natural and man-made, and macroeconomic and/or geopolitical events, anticipated dispositions, monetization and/or acquisitions of businesses or assets, the successful integration of acquired businesses, management succession and retention plans, exposure to risk, trends in operations and financial results, and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results and financial condition to differ, possibly materially, from the results and financial condition expressed or implied in the forward-looking statements. Factors that could cause actual results to differ, possibly materially, from those in specific projections, targets, goals, plans, assumptions and other forward-looking statements include, without limitation: the impact of adverse developments affecting economic conditions in the markets in which we operate, including financial market conditions, a U.S. federal government shutdown, macroeconomic trends, changes in trade policies, including tariffs, fluctuations in interest rates and foreign currency exchange rates, inflationary pressures, including social inflation, pressures on the commercial real estate market, pandemics, and geopolitical events or conflicts; the occurrence of catastrophic events, both natural and man-made, which may be exacerbated by the effects of climate change; disruptions in the availability or accessibility of our or a third party's information technology systems, including hardware and software, infrastructure or networks, and the inability to safeguard the confidentiality and integrity of customer, employee or company data due to cyberattacks, data security breaches or infrastructure vulnerabilities; our ability to effectively implement technological advancements, including the use of artificial intelligence (AI), and respond to competitors' AI and other technology initiatives; our ability to successfully complete strategic transactions, including to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired businesses, and the anticipated benefits thereof; the effects of changes in laws and regulations, including those relating to privacy, data protection, cybersecurity and AI, and the regulation of insurance, in the U.S. and other countries in which we operate; concentrations in our investment portfolios; changes in the valuation of our investments; our reliance on third-party investment managers; nonperformance or defaults by counterparties; our reliance on third parties to provide certain business and administrative services; our ability to adequately assess risk and estimate related losses as well as the effectiveness of our enterprise risk management policies and procedures; changes in judgments or assumptions concerning insurance underwriting and insurance liabilities; concentrations of our insurance, reinsurance and other risk exposures; availability of adequate reinsurance or access to reinsurance on acceptable terms; changes to tax laws in the countries in which we operate; the effectiveness of strategies to retain and recruit key personnel and to implement effective succession plans; the effects of sanctions and the failure to comply with those sanctions; difficulty in marketing and distributing products through current and future distribution channels; actions by rating agencies with respect to our credit and financial strength ratings as well as those of its businesses and subsidiaries; changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill; our ability to address evolving global stakeholder expectations and regulatory requirements including with respect to environmental, social and governance matters and to effectively execute on sustainability targets and standards; our ability to effectively implement restructuring initiatives and potential cost-savings opportunities; changes to sources of or access to liquidity; changes in accounting principles and financial reporting requirements or their applicability to us; the outcome of significant legal, regulatory or governmental proceedings; 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 our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 (which will be filed with the Securities and Exchange Commission (SEC); Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A in our Annual Report on Form 10-K for the year ended December 31, 2025; and our other filings with the SEC. Forward-looking statements speak only as of the date of this presentation, or in the case of any document incorporated by reference, the date of that document. Forecasts and projections speak only as of the date on which they are made, are not guarantees of future performance and are based on management's current expectations and on assumptions currently believed to be reasonable. AIG is not under any obligation to publicly update or revise any forward-looking statements, forecasts or projections, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results or events to differ materially from those expressed or implied in any forward-looking statements, forecasts or projections is disclosed from time to time in our filings with the SEC. Amounts presented may not foot due to rounding.

Glossary of Non-GAAP Financial Measures

Throughout this presentation, we present our financial condition and results of operations in the way we believe will be most meaningful and representative of our business results. Some of the measurements we use 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 we present may not be comparable to similarly-named measures reported by other companies. The reconciliations of such measures to the most comparable GAAP measures in accordance with Regulation G are included within the relevant tables or in the First Quarter 2026 Financial Supplement available in the Investor Information section of AIG's website, https://www.aig.com.

We may use certain non-GAAP operating performance measures as forward-looking financial targets or projections. These financial targets or projections are provided based on management's estimates. The most directly comparable GAAP financial targets or projections would be heavily dependent upon results that are beyond management's control and the outcome of these items could be significantly different than management's estimates. Therefore, we do not provide quantitative reconciliations for these financial targets or projections as we cannot predict with accuracy future actual events (e.g., catastrophe losses) and impacts from changes in macro-economic market conditions, including the interest rate environment (e.g. net reserve discount change and returns on alternative investments).

We use the following operating performance measures because we believe they enhance the understanding of the underlying profitability of operations and trends of our segments. We believe they also allow for more meaningful comparisons with our insurance competitors. When we use these measures, reconciliations to the most comparable GAAP measure are provided on a consolidated basis.

Adjusted Pre-tax Income (APTI) is derived by excluding the items set forth below from income before income tax:

changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares;

net investment income on Fortitude Re funds withheld assets held by AIG in support of Fortitude Re's reinsurance obligations to AIG (Fortitude Re funds withheld assets);

net realized gains and losses on Fortitude Re funds withheld assets;

loss (gain) on extinguishment of debt;

all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication. Earned income on such economic hedges is reclassified from net realized gains and losses to specific APTI line items based on the economic risk being hedged (e.g. net investment income);

income or loss from discontinued operations;

net loss reserve discount benefit (charge);

net results of businesses in run-off;

non-operating pension expenses;

net gain or loss on divestitures and other;

non-operating litigation reserves and settlements;

restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency and simplify our organization;

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;

integration and transaction costs associated with acquiring or divesting businesses;

losses from the impairment of goodwill; and

non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes or changes to accounting principles.

Glossary of Non-GAAP Financial Measures

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

deferred income tax valuation allowance releases and charges; and

changes in uncertain tax positions and other tax items related to legacy matters having no relevance to our current businesses or operating performance.

Book value per share, excluding investments related cumulative unrealized gains and losses recorded in Accumulated other comprehensive income (loss) (AOCI) adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets (collectively, Investments AOCI) (Adjusted book value per share) is used to show the amount of our net worth on a per share basis after eliminating the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re. Adjusted book value per share is derived by dividing total AIG common shareholders' equity, excluding Investments AOCI (AIG adjusted common shareholders' equity) by total common shares outstanding.

Book value per share, excluding Investments AOCI, deferred tax assets (DTA) and AIG's ownership interest in Corebridge (Core operating book value per share) is used to show the amount of our net worth on a per share basis after eliminating Investments AOCI, DTA and AIG's ownership interest in Corebridge. We believe this measure is useful to investors because it eliminates the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions. We also exclude the portion of DTA representing U.S. tax attributes related to net operating loss carryforwards (NOLs), corporate alternative minimum tax credits (CAMTCs) and foreign tax credits (FTCs) that have not yet been utilized. Amounts for interim periods are estimates based on projections of full-year attribute utilization. As NOLs, CAMTCs and FTCs are utilized, the corresponding portion of the DTA utilized is included. We exclude AIG's ownership interest in Corebridge since it is not a core long-term investment for AIG. Core operating book value per share is derived by dividing total AIG common shareholders' equity, excluding Investments AOCI, DTA and AIG's ownership interest in Corebridge (AIG core operating shareholders' equity) by total common shares outstanding.

Book Value per share, excluding Investments AOCI, Goodwill, Value of business acquired (VOBA), Value of distribution channel acquired (VODA) and Other intangible assets (Adjusted tangible book value per share) is used to provide a useful measure of the realizable shareholder value on a per share basis after eliminating the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions and Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re. Adjusted tangible book value per share is derived by dividing AIG adjusted common equity, excluding intangible assets, (AIG adjusted tangible common shareholders' equity) by total common shares outstanding.

Total debt to total adjusted capital ratio is used to show the AIG's debt leverage adjusted for Investments AOCI and is derived by dividing total debt by total capital excluding Investments AOCI (Total adjusted capital). We believe this measure is useful to investors because it eliminates items that can fluctuate significantly from period to period due to changes in market conditions. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re.

Return on equity - Adjusted after-tax income excluding Investments AOCI (Adjusted return on equity) is used to show the rate of return on common shareholders' equity excluding Investments AOCI. We believe this measure is useful to investors because it eliminates the fair value of investments which can fluctuate significantly from period to period due to changes in market conditions. Adjusted return on equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG adjusted common shareholders' equity.

Return on Equity - Adjusted After-tax Income, Excluding Goodwill, VOBA, VODA and Other Intangible assets (Return on tangible equity) is used to show the return on AIG tangible common shareholder's equity, which we believe is a useful measure of realizable shareholder value. We exclude Goodwill, VOBA, VODA and Other intangible assets from AIG common shareholders' equity to derive AIG tangible common shareholders' equity. Return on AIG tangible common equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG tangible common shareholders' equity.

Return on equity - Adjusted after-tax income excluding Investments AOCI, DTA and AIG's ownership interest in Corebridge (Core operating return on equity) is used to show the rate of return on common shareholders' equity excluding Investments AOCI, DTA and AIG's ownership interest in Corebridge. We believe this measure is useful to investors because it eliminates the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions. We also exclude the portion of DTA representing U.S. tax attributes related to NOLs, CAMTCs and FTCs that have not yet been utilized. Amounts for interim periods are estimates based on projections of full-year attribute utilization. As NOLs, CAMTCs and FTCs are utilized, the corresponding portion of the DTA utilized is included. We exclude AIG's ownership interest in Corebridge since it is not a core long-term investment for AIG. We believe this metric provides investors with greater insight as to the underlying profitability of our property and casualty business. Core operating return on equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG core operating shareholders' equity.

Glossary of Non-GAAP Financial Measures

Ratios: We, along with most property and casualty insurance companies, use the loss ratio, the expense 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 General Insurance excludes net loss reserve discount), and the amount of other underwriting expenses that would be incurred. A combined ratio of less than 100 indicates underwriting income and a combined ratio of over 100 indicates an underwriting loss. Our ratios are calculated using the relevant segment information calculated under GAAP, and thus may not be comparable to similar ratios calculated for regulatory reporting purposes. The underwriting environment varies across countries and products, as does the degree of litigation activity, all 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 Accident year combined ratios, as adjusted (Accident year loss ratio, ex-CAT and Accident year combined ratio, ex-CAT): both the accident year loss and accident year combined ratios, as adjusted, exclude catastrophe losses (CATs) and related reinstatement premiums, net of reinsurance, and prior year development, net of prior year premiums, net of reinsurance, and the impact of reserve discounting. Natural catastrophe losses are generally weather or seismic events, in each case, having a net impact on AIG in excess of $10 million and man-made catastrophe losses, such as terrorism and civil unrest that exceed the $10 million threshold. We believe that as adjusted ratios are meaningful measures of our underwriting results on an ongoing basis as they exclude catastrophes and the impact of reserve discounting which are outside of management's control. We also exclude prior year development to provide transparency related to current accident year results.

Underwriting ratios are computed net of reinsurance and 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

CATs and reinstatement premiums ratio = [Loss and loss adjustment expenses incurred - (CATs)] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes] - Loss ratio

Accident year loss ratio, as adjusted (AYLR, ex-CAT) = [Loss and loss adjustment expenses incurred - CATs - PYD] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes +/(-) Prior year premiums]

Accident year combined ratio, as adjusted (AYCR, ex-CAT) = AYLR ex-CAT + Expense ratio

Prior year development, net of prior year premiums ratio = [Loss and loss adjustment expenses incurred - CATs - PYD] ÷ [NPE +/(-) Reinstatement premiums related to catastrophes +/(-) Prior year premiums] - Loss ratio - CATs and reinstatement premiums ratio.

Results from discontinued operations are excluded from all of these measures.

Disclaimer

AIG - American International Group Inc. published this content on May 01, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2026 at 12:22 UTC.