#1AIG First Quarter 2021 Financial Results Presentation May 7, 2021#2Cautionary Statement Regarding Forward-Looking Information, Comment on Regulation G and Other Information This document and the remarks made within this presentation may include, and officers and representatives of American International Group, Inc. (AIG) may from time to time make and discuss, 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 a belief regarding future events, many of which, by their nature, are inherently uncertain and outside 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 relate to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, anticipated organizational, business or regulatory changes, the effect of catastrophes, such as the COVID-19 crisis, and macroeconomic events, anticipated dispositions, monetization and/or acquisitions of businesses or assets, or successful integration of acquired businesses, management succession and retention plans, exposure to risk, trends in operations and financial results. It is possible that AIG's actual results and financial condition will differ, possibly materially, from the results and financial condition indicated in these projections, goals, assumptions and statements. Factors that could cause AIG's actual results to differ, possibly materially, from those in the specific projections, goals, assumptions and statements include: changes in market and industry conditions, including the significant global economic downturn, volatility in financial and capital markets, fluctuations in interest rates, prolonged economic recovery and disruptions to AIG's operations driven by COVID-19 and responses thereto, including new or changed governmental policy and regulatory actions; the occurrence of catastrophic events, both natural and man-made, including COVID-19, other pandemics, civil unrest and the effects of climate change; AIG's ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired businesses, including any separation of the Life and Retirement business from AIG and the impact any separation may have on AIG, its businesses, employees, contracts and customers; the adverse impact of COVID-19, including with respect to AIG's business, financial condition and results of operations; AIG's ability to effectively execute on AIG 200 transformational programs designed to achieve underwriting excellence, modernization of AIG's operating infrastructure, enhanced user and customer experiences and unification of AIG; the impact of potential information technology, cybersecurity or data security breaches, including as a result of cyber-attacks or security vulnerabilities, the likelihood of which may increase due to extended remote business operations as a result of COVID-19; disruptions in the availability of AIG's electronic data systems or those of third parties; changes to the valuation of AIG's investments; changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill; availability and affordability of reinsurance; the effectiveness of our risk management policies and procedures, including with respect to our business continuity and disaster recovery plans; nonperformance or defaults by counterparties, including Fortitude Reinsurance Company Ltd. (Fortitude Re); changes in judgments concerning potential cost-saving opportunities; concentrations in AIG's investment portfolios; changes to our sources of or access to liquidity; actions by rating agencies with respect to our credit and financial strength ratings; changes in judgments or assumptions concerning insurance underwriting and insurance liabilities; the effectiveness of strategies to recruit and retain key personnel and to implement effective succession plans; the requirements, which may change from time to time, of the global regulatory framework to which AIG is subject; significant legal, regulatory or governmental proceedings; and such other factors discussed in Part I, Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) in AIG's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021 (which will be filed with the Securities and Exchange Commission), and Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A in AIG's Annual Report on Form 10-K for the year ended December 31, 2020. 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 made from time to time, whether as a result of new information, future events or otherwise. On October 26, 2020, AIG announced its intention to separate the Life and Retirement business from AIG. This document and the remarks made within this presentation are not an offer to sell, or a solicitation of an offer to buy any securities. This document and the remarks made orally may also contain certain financial measures not calculated in accordance with generally accepted accounting principles (non-GAAP). The reconciliation of such measures to the most comparable GAAP measures in accordance with Regulation G is included in the earnings release and First Quarter 2021 Financial Supplement available in the Investor Information section of AIG's corporate website, www.aig.com, as well as in the Appendix to this presentation. Note: Amounts presented may not foot due to rounding. AIG 2#31Q21 APTI reflects continued improvement in General Insurance accident year, as adjusted*, underwriting profitability and strong Life and Retirement APTI 1Q21 Financial Results General Insurance Life and Retirement Capital Management AIG " ◉ " ◉ . Adjusted after-tax income attributable to AIG common shareholders (AATI)* of $923M ($1.05/diluted share) and adjusted pre-tax income (APTI)* of $1.3B reflecting: A 69% increase in General Insurance APTI reflecting a 92.4 accident year combined ratio (AYCR), as adjusted*, which improved 3.1 pts driven by Global Commercial Lines and International Personal Insurance, and 7.3 pts of catastrophe losses, net of reinsurance (CATS), or $422M, primarily from winter storms - A 57% increase in Life and Retirement APTI due to higher net investment income (NII), APTI basis, which contributed to increased APTI in Individual and Group Retirement and Institutional Markets; Life Insurance was impacted by elevated mortality primarily from COVID-19, and An increase of 18% in NII, APTI basis*, to $3.2B compared to 1Q20; excluding the impact of Fortitude Group Holdings, LLC (Fortitude) in 1Q20, NII, APTI basis, increased 24%, or $611M, reflecting higher private equity returns and positive hedge fund income - Net income attributable to AIG common shareholders of $3.9B ($4.41/diluted share) reflecting $923M of AATI and $2.4B of net realized capital gains related to the Fortitude embedded derivative Return on common equity (ROCE) and Adjusted ROCE* were 24.2% and 7.4%, respectively, on an annualized basis for 1Q21 Book value per common share was $72.37, a decrease of 5.3% from December 31, 2020, due to the impact of higher interest rates on accumulated other comprehensive income (AOCI) during 1Q21; Adjusted book value per common share* was $58.69, an increase of 2.9% from December 31, 2020 Net premiums written (NPW) increased by 9% from 1Q20 driven by 25% growth in Global Commercial Lines (22% on a constant dollar basis) AYCR, as adjusted, of 92.4, a 3.1 pt improvement from 1Q20; the 59.2 accident year loss ratio (AYLR), as adjusted* and 33.2 expense ratio improved 1.6 pts and 1.5 pts, respectively - Commercial Lines continued to show strong improvement in both North America (NA) (AYCR, as adjusted, down 3.7 pts) and International (AYCR, as adjusted, down 4.9 pts) due to improved business mix along with rate increases International Personal Insurance AYCR, as adjusted, was down 1.5 pts due to improved attritional losses and expense discipline NA Personal Insurance AYCR, as adjusted, increased 7.9 pts to 105.9 compared to the prior year quarter due to the impact of COVID-19, most notably on the Travel business, and changes in business mix driven by the combined impact of the creation of Syndicate 2019 and cessions placed on AIG's Private Client Group (PCG) business, which occurred in 2Q20 1Q21 APTI of $941M and annualized return on adjusted segment common equity* of 14.2% both reflect the impact of favorable capital markets conditions on NII, APTI basis, Variable Annuity deferred acquisition cost (DAC) and sales inducement assets (SIA) amortization, net of fee income and changes in reserves, partially offset by elevated mortality in Life Insurance, principally due to COVID-19 On October 26, 2020, AIG announced its intention to separate the Life and Retirement business from AIG. Refer to page 10 for further discussion on the announced separation $7.9B AIG Parent liquidity at March 31, 2021, down from $10.5B at December 31, 2020, principally due to debt repayment, share repurchases and shareholder dividends Total debt and preferred stock leverage of 28.4%; excluding AOCI, adjusted for the cumulative unrealized gains and losses related to Fortitude's funds withheld assets, total debt and preferred stock leverage was 29.7% at March 31, 2021 Repurchased $362M of AIG Common Stock (~8M shares); as of May 6, 2021, $1.1B remained under the share repurchase authorization 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. 3#4APTI of $1.3B reflects higher NII, APTI basis, continued improvement in Commercial Lines AYCR, as adjusted, and strong Life and Retirement results ($M, except per common share amounts) Adjusted Pre-tax Income (Loss): General Insurance Life and Retirement 1Q20 1Q21 Variances ◉ $501 $845 $344 601 941 340 Other Operations¹ (922) (530) 392 Total adjusted pre-tax income $180 1,256 $1,076 AATI attributable to AIG common shareholders $105 923 818 AATI* per diluted share attributable to AIG common shareholders $0.12 $1.05 $0.93 Net income attributable to AIG common shareholders $1,742 $3,869 $2,127 Consolidated adjusted ROCE 0.8% 7.4% General Insurance Underwriting Ratios: 6.6 pts B/(W) Loss ratio 66.8% 65.6% 1.2 pts ◉ Less: impact on loss ratio Catastrophe losses and reinstatement premiums (6.9%) (7.3%) Prior year development Accident year loss ratio, as adjusted 0.9% 0.9% 60.8% 59.2% (0.4) pts 0.0 pts 1.6 pts Expense ratio 34.7% 33.2% 1.5 pts Combined ratio 101.5% 98.8% 2.7 pts Accident year combined ratio, as adjusted 95.5% 92.4% 3.1 pts Key Takeaways General Insurance APTI increased by $344M primarily due to a $160M increase in underwriting income, reflecting an improved AYCR, as adjusted, of 3.1 pts and a $184M increase in NII, APTI basis, from higher alternative investment income Life and Retirement APTI increased $340M reflecting higher NII, APTI basis, across all businesses, driven by private equity returns, which are reported on a one quarter lag, and call and tender income and fair value option (FVO) bond income due to lower interest rates and tighter credit spreads. Group Retirement and Individual Retirement APTI benefited from lower Variable Annuity DAC/SIA amortization, net of fee income and changes in reserves, partially offset by base spread compression. Life Insurance had an adjusted pre-tax loss (APTL) of $40M reflecting elevated mortality principally due to COVID-19 Other Operations APTL was $530M, including $176M of reductions from consolidation and eliminations, compared to APTL of $922M, including $87M of reductions from consolidation and eliminations, in the prior year quarter. The increase in consolidation and eliminations APTL reflects the impact of consolidated investment entities (CIE). Before consolidation and eliminations, the decrease in APTL primarily reflects the impact of Fortitude, which was sold and deconsolidated in 2Q20, and had an APTL of $317M in 1Q20 AIG 1) Other Operations is primarily comprised of corporate, our institutional asset management business and consolidation and eliminations. 4#51Q20 and 1Q21 noteworthy items ($M, except per share amounts) CATS excluding General Insurance COVID-193 General Insurance COVID-19 CATS 1Q20 - Income / (Loss) Pre-tax After-tax¹ 1Q21 - Income / (Loss) EPS diluted² 1 Pre-tax After-tax1 EPS- diluted² ($147) (272) ($116) ($0.13) ($441) ($348) ($0.40) (215) ($0.24) 60 47 0.05 37 29 0.03 Favorable prior year development (PYD)4 Investment performance: Better/(worse) than expected alternative investment returns consolidated 5,6 - (186) (147) (0.17) 451 356 0.41 (Worse) than expected fair value changes on fixed maturity securities other accounted under FVO5 (321) (254) (0.29) (67) (53) (0.06) Total noteworthy items - APTI basis ($866) ($684) ($0.78) ($20) ($16) ($0.02) 1) Computed using a U.S. statutory tax rate of 21%. 2) Computed using weighted average diluted shares on an operating basis, which is provided on page 6 of the 1Q21 Financial Supplement. 3) 1Q21 includes $422M of CATS in General Insurance and $19M of CATS in Other Operations related to Blackboard, pre-tax. AIG 4) 1Q21 includes $56M of favorable PYD in General Insurance and $19M of unfavorable PYD in Other Operations primarily related to Blackboard, pre-tax. 5) The annualized expected rate of return for both 1Q20 and 1Q21 is 6% for alternative investments and 4% for FVO fixed maturity securities, respectively. Presented on a consolidated AIG basis, which consists of GI, L&R and Other Operations, including consolidation and eliminations. 6) 5#6Gross investment income (GII), APTI basis 1*, increased $408M reflecting improved private equity and hedge fund investment returns. Invested Assets & Gross Investment Income, APTI Basis¹ 1Q21 Invested Assets Gross Investment Income, APTI basis ($M) $B Fixed Maturities Alternatives All Other 1Q20 ($73) $668 General Insurance $45 $640 Interest & dividends $77.2 $5.2 $2.4 1Q21 $534 $201 $77 $812 Alternative investments $18 1Q20 $2,022 $2,155 Life & $115 $186.6 $4.0 $4.7 Retirement All other 1Q21 $2,027 $292 $103 $2,422 ($101) 1Q20 ($263) $416 Other $52 Other adjustments² $8.6 Operations¹ ($1.2) $7.5 ($23) 1Q21 $79 $69 $13 1Q20 ($13) $200 $3,106 $2,834 Total AIG $272.4 $8.0 $14.6 ($59) 1Q21 ($61) $2,574 $572 $157 $3,242 3.60% 2.79% 1Q20 and 1Q21 Annualized Investment Yields Fixed Maturities³ Alternative Investments4 Total Alternative Investments 4.51% 4.34% 4.18% Consolidated AIG Hedge Funds & Private Equity 34.11% 3.77% 29.69% 28.44% 15.31% 16.62% 9.77% 9.67% (5.69%) General Insurance Life & Retirement Consolidated AIG 1Q20 1Q21 AIG General Insurance (2.78%) 1020 1021 Life & Retirement Consolidated AIG (37.28%) Hedge Funds Private Equity * 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. 1) 1Q20 includes GII and NII of $119M related to investment income on Fortitude assets. Excluding Fortitude, 1Q20 GII, APTI basis, is $2,715 and NII, APTI basis, is $2,580. 2) Other adjustments include net realized capital gains related to economic hedges and other. 3) Interest and dividends include amounts related to commercial mortgage loan prepayments and call and tender income; Life and Retirement annualized yields include yield on collateral related to hedging program. 4) Alternative investment income includes income on hedge funds, private equity funds and affordable housing partnerships. 6#7General Insurance: 3.1 pts better AYCR, as adjusted; Global Commercial Lines NPW grew 25% (22% on a constant dollar basis) Net Premiums Written (NPW) ($M) ($M) 1Q20 1Q21 Net premiums written $5,921 $6,479 Global Commercial Lines Global Personal Insurance Net premiums earned $6,079 $5,866 +25.4% $4,769 Loss and loss adjustment expense 4,059 3,848 $3,802 $2,119 $1,982 -19.3% $1,710 Acquisition expenses 1,331 1,184 $1,648 General operating expenses 776 761 $1,574 Underwriting income (loss) ($87) $73 $2,787 $2,154 Net investment income $588 $772 Change primarily driven by the formation of Syndicate 2019 and lower Travel premiums $1,567 Adjusted pre-tax income $501 $845 1Q20 1Q21 Note: Impact of CATS¹, pre-tax ($419) ($422) ■North America $545 due to COVID-19 $143 1Q20 1Q21 International Calendar Year Combined Ratios (CYCR) Accident Year Combined Ratios (excl. CATS) walk AYCR, as adjusted, 101.5% -2.7 pts 98.8% 6.9% 7.3% improved 3.1 pts 95.5% 92.4% 12.8% with 0.4 pt 13.0% increase in 1.6% 1.5% 21.9% 20.2% 34.7% 33.2% CATS 60.8% -0.9% 1Q20 59.2% -0.9% 1Q21 60.8% 59.2% 1Q20 AYLR U/W Actions/Mix Expense Ratio 1Q21 ■AYLR, As Adj. Acq. Ratio GOE Ratio ■PYD Ratio ■CAT Ratio ■AYLR, As Adj. AIG 1) 1Q20 includes Non-COVID-19 CATS of $147M and COVID-19 CATS of $272M, pre-tax. Expense Ratio 7#8General Insurance: 3.7 pt improvement in North America Commercial Lines AYCR, as adjusted; Personal Insurance impacted by Travel and Syndicate 2019 ($M) Net premiums written Commercial Lines Personal Insurance 1Q20 $2,699 2,154 545 1Q21 $2,930 2,787 143 Net premiums earned $2,731 $2,388 Commercial Lines Personal Insurance 1,957 774 2,037 351 ($103) ($202) Commercial Lines (18) (136) Personal Insurance (85) (66) Note: Impact of CATS, pre-tax ($185) ($361) Underwriting loss Key Takeaways: ■ NA Commercial Lines NPW grew 29% over 1Q20 reflecting continued strong rate increases across most lines, improved retention and higher new business volumes. NA Personal Insurance NPW decreased 74% reflecting the combined impact of the creation of Syndicate 2019 and cessions placed on the PCG business, which occurred in 2Q20, and the impact of COVID-19 on Travel premiums ■ NA Commercial Lines AYCR, as adjusted, improved 3.7 pts reflecting improved business mix along with rate increases ■ NA Personal Insurance AYCR, as adjusted, increased 7.9 pts due to the impact of COVID-19 most notably on the Travel business and the change in business mix driven by changes to PCG business as described above. The GOE ratio was impacted negatively by the reduction in net premiums earned, offset slightly by a lower acquisition ratio ■ CATS of $361M primarily related to winter storms ■ Favorable PYD of $58M with $53M in Commercial Lines and $5M in Personal Insurance; PYD includes $52M of favorable amortization from the ADC North America Combined Ratios Total Commercial Lines Personal Insurance 103.8% 108.4% 100.9% 106.7% 111.0% 118.8% 6.8% 15.2% 6.3% 15.4% 7.9% 14.5% (0.7%) 2.4% (3.0%) (2.6%) 5.1% (1.6%) 97.7% 95.6% 97.6% AYCR, as 93.9% 98.0% Change 105.9% AYCR, as primarily 11.0% adjusted, 12.0% 11.2% adjusted, 10.6% 18.5% 10.8% driven by the 20.1% improved 16.8% 16.3% improved 15.8% 29.6% impact of 23.1% 2.1 pts 3.7 pts COVID-19 on Travel and the AYLR, as formation of 66.6% 66.8% 70.1% adjusted, 67.3% 57.8% 64.3% Syndicate improved 2019 2.8 pts 1Q20 AIG 1Q21 1Q20 CYCR CAT Ratio PYD Ratio AYCR, As adjusted 1Q21 1Q20 GOE Ratio Acquisition Ratio AYLR, As adjusted 1Q21 8#91Q20 $3,222 1Q21 $3,549 Commercial Lines 1,648 1,982 Personal Insurance 1,574 1,567 Net premiums earned $3,348 $3,478 Commercial Lines 1,701 1,854 Personal Insurance 1,647 1,624 Underwriting income $16 $275 Commercial Lines (24) 186 Personal Insurance 40 89 General Insurance: Strong 3.4 pt improvement in International AYCR, as adjusted, due to improved business mix along with rate increases ($M) Net premiums written Key Takeaways: ■ International Commercial Lines NPW grew 20% (13% on a constant dollar basis) over 1Q20 reflecting strong rate increases and improved retention across most lines. International Personal Insurance NPW was flat (down 6% on a constant dollar basis) compared to the prior year quarter, primarily due to the impact of COVID-19 across most lines ■ International Commercial Lines AYCR, as adjusted, improved 4.9 pts due to enhanced risk selection along with rate increases, supported by expense discipline ■ International Personal Insurance AYCR, as adjusted, improved 1.5 pts reflecting improved attritional losses and expense discipline ■ CATS of $61M primarily related to U.S. winter storms ■ Unfavorable PYD of $2M with $4M favorable PYD in Commercial Lines offset by $6M unfavorable PYD in Personal Insurance Note: Impact of CATS, pre-tax ($234) ($61) International Combined Ratios Total Commercial Lines Personal Insurance 92.2% 99.5% 101.4% 90.0% 97.6% 94.6% 2.7% 7.0% 1.9% 11.2% 0.4% 3.2% (1.1%) 0.1% (1.5%) (0.6%) 0.2% 93.6% 90.2% 91.7% 95.5% 94.0% AYCR, as AYCR, as 86.8% AYCR, as 14.2% adjusted, 13.7% 13.9% adjusted, 14.5% adjusted, 14.3% 13.1% improved improved improved 23.4% 3.4 pts 22.5% 20.7% 4.9 pts 26.2% 19.8% 1.5 pts 25.6% AYLR, as AYLR, as 56.0% adjusted, 54.0% 57.1% adjusted, 53.9% improved improved 2.0 pts 3.2 pts 1Q20 1Q21 1Q20 CYCR CAT Ratio PYD Ratio AYCR, As adjusted 1Q21 GOE Ratio Acquisition Ratio 1Q20 AYLR, as 54.8% adjusted, 54.1% improved 0.7 pts 1Q21 AYLR, As adjusted AIG 9#10Life and Retirement**: 57% increase in APTI driven by favorable capital markets conditions resulting in higher NII and lower DAC/SIA amortization, partially offset by base net investment spread compression and elevated mortality Adjusted Pre-Tax Income ($M) +57% $941 $601 +$340M $142 $75 $307 $78 $143 $305 1Q20 $532 $(40) 1Q21 Premiums and Deposits ($M) Key Takeaways ☐ 1Q21 APTI growth reflects business and investment portfolio strength and diversification as: - - - - Favorable equity market returns resulted in higher private equity returns, which are reported on a one quarter lag, and lower Variable Annuity DAC/SIA amortization, net of fee income and changes in reserves, and Lower interest rates and tighter credit spreads drove higher call and tender income and FVO bond income; partially offset by Base net investment spread compression, and Elevated mortality in Life Insurance principally due to COVID-19 1Q21 premiums and deposits decreased 9%, as the prior year quarter had higher PRT1 and GIC² activity; partially offsetting the decrease were improved Variable Annuity sales Return on adjusted segment common equity (annualized) -9% $7,009 $6,402 -$607M $80 $976 +6% $1,131 $1,062 $1,855 $1,818 +8% $3,116 $3,373 1Q20 1Q21 8.9% +5.3 pts 14.2% 1Q20 1Q21 Noteworthy Items ($M) 1Q20 1Q21 Variance Return on alternative investments $ Other yield enhancements $ 115 $ 292 $ 177 8 $ 193 $ 185 Includes: Fair value changes on Fixed Maturity Securities - Other accounted under FVO All other yield enhancements (53) $ 12 $ 65 $ 61 $ 181 $ 120 ■Individual Retirement ■Life Insurance AIG Group Retirement Institutional Markets **Note: On October 26, 2020, AIG announced its intention to separate its Life and Retirement business from AIG. Any separation transaction will be subject to the satisfaction of various conditions and approvals, including approval by the AIG Board of Directors, receipt of insurance and other required regulatory approvals, and satisfaction of any applicable requirements of the Securities and Exchange Commission. While we currently believe an initial public offering represents an optimal path, no assurance can be given regarding the form that a separation transaction may take or the specific terms or timing thereof, or that a separation will in fact occur. 1) PRT is defined as Pension Risk Transfer. 2) GIC is defined as Guaranteed Investment Contracts. 10#11Life and Retirement: Individual and Group Retirement APTI up 74% and 115%, respectively, driven by favorable capital markets conditions, partially offset by base net investment spread compression Deposits ($M) Individual Retirement¹ Assets Under Premiums and Net Flows ($M) Administration ($B) APTI ($M) ($574) n.m. $532 (+10% vs. 1Q20) (+74% vs. 1Q20) $3,373 (+8% vs. 1Q20) Base Net Investment Spread $ 160.0 Total Net Investment Spread 3.44% 3.32% 2.83% 2.59% 2.52% 2.68% 1.75% 1.92% 2.28% 2.01% 1.40% 1.37% Fixed Annuities Variable and Index Annuities Fixed Annuities Variable and Index Annuities Administration ($B) 1Q21 vs 1Q20 APTI reflects Favorable impacts from: " Equity markets, resulting in higher fee income and lower DAC/SIA amortization Higher alternative investment income from strong private equity returns Lower interest rates and tighter credit spreads in 1Q21 drove higher call and tender income and FVO bond income Unfavorable impacts from: " Base net investment spread compression Other Key Metrics Net flows improved significantly driven by lower Retail Mutual Fund (RMF) outflows. Excluding RMF net flows were positive at $50M and favorable to 1Q20 at ($84M). Sales continued to recover from broad industry sales disruptions Assets under administration rose 10% due to strong equity market performance over the last twelve months Group Retirement Assets Under Premiums and Deposits ($M) Net Flows ($M) APTI ($M) $1,818 ($893) (-2% vs. 1Q20) n.m. $ 131.3 $307 (+26% vs. 1Q20) (+115% vs. 1Q20) " Base Net Investment Spread 1.70% Total Net Investment Spread 1.81% 1.54% 1.48% 2.43% 2.37% -1Q20 - 4Q20 ■ 1Q21 AIG 1) Includes Retail Mutual Funds. 1Q21 vs 1Q20 APTI reflects Favorable impacts from: " Equity markets, resulting in higher fee income and lower DAC/SIA amortization Higher alternative investment income from strong private equity returns Lower interest rates and tighter credit spreads in 1Q21 drove higher call and tender income and FVO bond income Lower GOE Unfavorable impacts from: " Base net investment spread compression Other Key Metrics Net flows were adversely impacted by higher group surrenders in 1Q21 Assets under administration rose 26% driven primarily by strong equity market performance over the last twelve months 11#12Life and Retirement: Life Insurance and Institutional Markets APTI reflects higher NII from favorable capital markets conditions; Life Insurance impacted by elevated mortality Life Insurance New Business Sales ($M) Premiums and Deposits ($M) APTI ($M) $109 (-11% vs. 1Q20) $1,131 (+6% vs. 1Q20) ($40) (-151% vs. 1Q20) New Business Sales Mix 1Q21 vs 1Q20 APTI reflects Favorable impacts from: Equity markets resulting in higher alternative investment income from strong private equity returns Lower interest rates and tighter credit spreads in 1Q21 drove higher call and tender income and FVO bond income 40% 45% ■Domestic (U.S.) Unfavorable impacts from: 55% 60% Elevated mortality principally due to COVID-19 International 1Q20 1Q21 1Q21 vs 1Q20 APTI reflects Favorable impacts from: Equity markets resulting in higher alternative investment income driven by strong private equity returns Lower interest rates and tighter credit spreads in 1Q21 drove higher call and tender income and FVO bond income Other Key Metrics Premiums and deposits decreased primarily due to high PRT and OGIC activity in the prior year quarter Institutional Markets APTI ($M) $142 (+89% vs. 1Q20) Premiums and Deposits ($M) GAAP Reserves ($B) $26.8 $24.3 $976 $7.8 $124 $6.9 $0.1 $59 $0.6 $2.4 $80 $2.1 $1 $5.1 $26 $4.9 $696 $13 $6.6 $8.0 $41 $97 1Q20 $3.3 $3.4 $(1) 1Q21 1Q20 1Q21 - SS ■ PRT COLI/BOLI ■ HNW ■ SVW - GIC AIG Reserves grew, notably in PRT and GIC businesses Definitions: SS = Structured Settlements | PRT = Pension Risk Transfer | COLI/BOLI = Corporate and Bank-owned life insurance | HNW = High Net Worth | SVW = Stable Value Wrap | GIC Guaranteed Investment Contracts. 12#13AIG Other Operations: APTL decreased principally due to the impact of Fortitude in 1Q20 which was deconsolidated in 2Q20 ($M) Corporate and Other Asset Management Adjusted pre-tax loss before consolidation and eliminations Consolidation and eliminations: Consolidation and eliminations - Consolidated investment entities Consolidation and eliminations - Other Total Consolidation and eliminations Adjusted pre-tax loss Key Takeaways: 1Q20 1Q21 ($879) ($552) 44 198 ($835) ($354) (104) (175) 17 (1) (87) (176) ($922) ($530) ■ 1Q21 APTL was $530M, including $176M of reductions from consolidation and eliminations, compared to APTL of $922M, including $87M of reductions from consolidation and eliminations, in the prior year quarter; the increase in consolidation and eliminations APTL reflects the elimination of net investment income recorded principally on internal funds or securitizations, on consolidated investment entities, that are included in net income but eliminated in consolidated AATI through consolidation and eliminations within Other Operations " Before consolidation and eliminations, the decrease in APTL primarily reflects the impact of Fortitude, which was sold and deconsolidated in 2Q20 and had an APTL of $317M in 1Q20 13 133#14Financial flexibility remains robust with strong balance sheet; Total debt & preferred stock leverage of 28.4%; $1.5B senior notes redeemed in February 2021 Capital Structure ($B) Risk Based Capital (RBC) Ratios4 $93.2 $1.6 $88.0 Hybrids 1 $1.6 Year Life and Retirement Companies General Insurance Companies 1,2 $24.4 ■Financial Debt $22.8 $0.8 ■NCI $8.9 $0.9 $4.2 $0.5 $7.9 $7.5 $0.5 AOCI ³ 2020 433% (CAL) 460% (ACL) ■Preferred Equity Total Equity: $67.2 Total Equity: $63.6 ■Tax Attribute DTA $49.1 $50.4 ■ Adjusted S/E 1Q21 Estimated 5 435% -445% (CAL) 465% -475% (ACL) December 31, 2020 March 31, 2021 Dec. 31, Mar. 31, Ratios: Hybrids / Total capital Pending finalization of Statutory financials Credit Ratings6 2020 2021 1.7% 1.8% S&P Moody's Fitch A.M. Best Financial debt / Total capital (incl. AOCI) Total Hybrids & Financial debt / Total capital Preferred stock / Total capital (incl. AOCI) Total debt and preferred stock / Total capital (incl. AOCI) 26.2% 26.0% 27.9% 27.8% AIG Senior Debt BBB+ Baa1 BBB+ NR 0.5% 0.6% 28.4% 28.4% General Insurance FSR A+ A2 A Total debt and preferred stock / 31.4% 29.7% Total capital (ex. AOCI)³* Life and Retirement A+ A2 A+ A FSR AIG * 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. 1) Hybrids and financial debt values include changes in foreign exchange. 2) Includes AIG notes, bonds, loans and mortgages payable, AIG Life Holdings, Inc. (AIGLH) notes and bonds payable and junior subordinated debt, and Validus notes and bonds payable. 3) December 31, 2020, AOCI is computed as GAAP AOCI of $13.5B excluding $4.7B of cumulative unrealized gains and losses related to Fortitude Re funds withheld assets; March 31, 2021 AOCI is computed as GAAP AOCI of $6.5B excluding $2.2B of cumulative unrealized gains and losses related to Fortitude Re funds withheld assets. 4) 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 and CAL is defined as Company Action Level. RBC ratio for Domestic Life and Retirement companies excludes holding company, AGC Life Insurance Company. 5) Preliminary range subject to change with completion of statutory closing process. 6) As of the date of this presentation: S&P Outlook: CreditWatch Negative, with the exception of the Life Insurance Companies, which is CreditWatch Developing; Moody's Outlook: Stable, with the exception of AIG Sr. Debt, On review for downgrade; Fitch Outlook: Stable, Non-Life and Life Companies; Rating Watch Negative, AIG Sr. Debt; A.M. Best Outlook: Stable. For General Insurance companies FSR and Life and Retirement companies FSR, 14 ratings only reflect those of the core insurance companies.#15AIG 200: Continued execution of global, multi-year initiative to achieve transformational change and $1B of GOE savings; Achieved run rate savings of -$500M to date ($M) 1 The Standard Commercial Underwriting Platform will modernize global underwriting capabilities by simplifying processes and tools to create a contemporary data architecture General Insurance 2 Transform Japan business into a next-generation digital insurance company with the ability to offer "anywhere, anytime, any device" experience 3 Shared 4 Services 5 Information Technology 6 7 Finance 8 Procurement 9 Real Estate 10 Improve decision-making in Private Client Group through modernizing legacy technology and moving to digitized workloads Create AIG Global Operations, a multifunctional, fully integrated operating model with digitally enabled end-to-end process and increased scope and scale Transform IT operating model Build a modern, scalable and secure technology foundation to improve operational stability and enable faster business technology deployment Transform Finance operating model Modernize infrastructure through technology solutions and simplify finance and actuarial processes, while materially improving analytics capabilities Create a highly efficient global procurement and sourcing organization to leverage our purchasing power, maximize value, minimize risk, and support sustained profitable growth Optimize portfolio to ensure it is cost effective, resilient and reflective of global footprint AIG 200 Costs to Achieve and GOE Benefits Investment / Costs to Achieve 2020 Actual 1Q21 Actual Targets 2021E 2022E Total Comments Capitalized assets, not in APTI initially -$80 -$10 $200 $120 $400 Amortized depreciated in GOE / APTI when IT or capital asset placed into service1 Restructuring and Other charges, -$150 ~$50 $300 $450 $900 offset by Gain on Sale, in Net Income Total investment Modest impact to APTI; primarily related to professional, IT and other restructuring fees, offset by gain on sale on divested entities ~$230 -$60 $500 $570 $1,300 Run-rate net GOE savings, cumulative1 ~$400 ~$500 $650 $1,000 Estimated exit run-rate savings will emerge over a period of time, which began in 2020, as a result of actions taken in the AIG 200 program Annual net benefit to APTI ~$175M -$75 Estimated annual APTI benefit as a result of actions taken in the AIG 200 program AIG 1) Targets assume estimated amortization / depreciation related to the capitalized assets of $10M-$15M and -$25M-$30M for 2021 and 2022, respectively. Targets assume that the unamortized balance will be expensed at $50M per year from 2023-2027 and the remainder will trail off in the periods thereafter. 15#16AIG's corporate debt investment portfolio is well diversified by industry sector; credit quality remains strong Fixed Maturity Securities by NAIC Designation March 31, 2021 – $234.5B1 - Corporate Debt by Industry Sector March 31, 2021 - $139.3B1 Other NAIC 3-6 8% $107.5 Basic materials $16.4 ■ Energy $3.8 NAIC 2 32% $9.3 ■Capital goods NAIC 1 60% $5.9 Consumer cyclical $7.8 ■Consumer $15.6 noncyclical ■Communications $6.9 Utilities $15.6 ■Financial institutions Fair value of total Fixed Maturity securities decreased 3.2% since December 31, 2020 Note: Amounts shown for segments are before consolidation and eliminations. AIG 1) Asset balances exclude Fortitude Re Funds Withheld Assets. 2) Other Operations by industry sector breakout is not shown due to scale. $29.1 $0.9 $3.5 $1.7 $1.5 $3.0 $3.8 $1.6 $26.3 $2.1 $11.0 $3.02 General Insurance Life and Retirement Other Operations 16#17Glossary of Non-GAAP Financial Measures and Non-GAAP Reconciliations AIG 17#18Glossary of Non-GAAP Financial Measures Glossary of Non-GAAP 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 2021 Financial Supplement available in the Investor Information section of AIG's website, 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 continuing operations and trends of our business 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 from continuing operations before income tax. This definition is consistent across our segments. These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and measures that we believe to be common to the industry. APTI is a GAAP measure for our segments. Excluded items include the following: . changes in fair value of securities used to hedge guaranteed living benefits; changes in benefit reserves and deferred policy acquisition costs (DAC), value of business acquired (VOBA), and sales inducement assets (SIA) related to net realized capital gains and losses; changes in the fair value of equity securities; ⚫ net investment income on Fortitude Re funds withheld assets held by AIG in support . • of Fortitude Re's reinsurance obligations to AIG post deconsolidation of Fortitude Re (Fortitude Re funds withheld assets); • following deconsolidation of Fortitude Re, net realized capital gains and losses on Fortitude Re funds withheld assets; loss (gain) on extinguishment of debt; ⚫ all net realized capital gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication. Earned income on such economic hedges is reclassified from net realized capital gains and losses to specific APTI line items based on the economic risk being hedged (e.g. net investment income and interest credited to policyholder account balances); . .. • • • income or loss from discontinued operations; net loss reserve discount benefit (charge); pension expense related to a one-time lump sum payment to former employees; income and loss from divested businesses; 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. Adjusted After-tax Income attributable to AIG Common Shareholders (AATI) is derived by excluding the tax effected adjusted pre-tax income (APTI) adjustments described above, dividends on preferred stock, and the following tax items from net income attributable to AIG: deferred income tax valuation allowance releases and charges; changes in uncertain tax positions and other tax items related to legacy matters having no relevance to our current businesses or operating performance; and - net tax charge related to the enactment of the Tax Cuts and Jobs Act (Tax Act); and by excluding the net realized capital gains (losses) and other charges from noncontrolling interests. AIG 18#19Glossary of Non-GAAP Financial Measures Glossary of Non-GAAP ■ Book Value per Common Share, Excluding Accumulated Other Comprehensive Income (AOCI) adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets and Deferred Tax Assets (DTA) (Adjusted Book Value per Common Share) is used to show the amount of our net worth on a per- common share basis after eliminating items that can fluctuate significantly from period 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 our available for sale securities portfolio wherein there is largely no offsetting impact for certain related insurance liabilities. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re. We exclude deferred tax assets representing U.S. tax attributes related to net operating loss carryforwards and foreign tax credits as they have not yet been utilized. Amounts for interim periods are estimates based on projections of full-year attribute utilization. As net operating loss carryforwards and foreign tax credits are utilized, the portion of the DTA utilized is included in these book value per common share metrics. Adjusted Book Value per Common Share is derived by dividing Total AIG common shareholders' equity, excluding AOCI adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets, and DTA (Adjusted Common Shareholders' Equity), by total common shares outstanding. ■ Book Value per Common Share, Excluding Goodwill, Value of Business Acquired (VOBA), Value of Distribution Channel Acquired (VODA), Other Intangible Assets, AOCI adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets, and Deferred Tax Assets (DTA) (Adjusted Tangible Book Value per Common Share) is used to provide more accurate measure of the realizable value of shareholder on a per-common share basis. Adjusted Tangible Book Value per Common Share is derived by dividing Total AIG common shareholders' equity, excluding intangible assets, AOCI adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets, and DTA (Adjusted Tangible Common Shareholders' Equity), by total common shares outstanding. ■ AIG Return on Common Equity (ROCE) - Adjusted After-tax Income Excluding AOCI adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets and DTA (Adjusted Return on Common Equity) is used to show the rate of return on common shareholders' equity. We believe this measure is useful to investors because it eliminates items that can fluctuate significantly from period to period, including changes in fair value of our 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 our available for sale securities portfolio wherein there is largely no offsetting impact for certain related insurance liabilities. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re. We exclude deferred tax assets representing U.S. tax attributes related to net operating loss carryforwards and foreign tax credits as they have not yet been utilized. Amounts for interim periods are estimates based on projections of full-year attribute utilization. As net operating loss carryforwards and foreign tax credits are utilized, the portion of the DTA utilized is included in Adjusted Return on Common Equity. Adjusted Return on Common Equity is derived by dividing actual or annualized adjusted after-tax income attributable to AIG common shareholders by average Adjusted Common Shareholders' Equity. ■ General Insurance and Life and Retirement Adjusted Segment Common Equity is based on segment equity adjusted for the attribution of debt and preferred stock (Segment Common Equity) and is consistent with AIG's Adjusted Common Shareholders' Equity definition. ■ General Insurance and Life and Retirement Return on Adjusted Segment Common Equity - Adjusted After-tax Income (Return on Adjusted Segment Common Equity) is used to show the rate of return on Adjusted Segment Common Equity. Return on Adjusted Segment Common Equity is derived by dividing actual or annualized Adjusted After- tax Income by Average Adjusted Segment Common Equity. Adjusted After-tax Income Attributable to General Insurance and Life and Retirement is derived by subtracting attributed interest expense, income tax expense and attributed dividends on preferred stock from APTI. Attributed debt and the related interest expense and dividends on preferred stock are calculated based on our internal allocation model. Tax expense or benefit is calculated based on an internal attribution methodology that considers among other things the taxing jurisdiction in which the segments conduct business, as well as the deductibility of expenses in those jurisdictions. AIG 19#20Glossary of Non-GAAP Financial Measures Glossary of Non-GAAP Adjusted Revenues exclude Net realized capital gains (losses), income from non-operating litigation settlements (included in Other income for GAAP purposes) and changes in fair value of securities used to hedge guaranteed living benefits (included in Net investment income for GAAP purposes). Adjusted revenues is a GAAP measure for our segments. ■ 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: both the accident year loss and accident year combined 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 and man-made catastrophe losses, such as terrorism and civil disorders 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 as follows: a) Loss ratio = Loss and loss adjustment expenses incurred + Net premiums earned (NPE) b) Acquisition ratio = Total acquisition expenses + NPE c) General operating expense ratio = General operating expenses + NPE d) Expense ratio = Acquisition ratio + General operating expense ratio e) Combined ratio = Loss ratio + Expense ratio ÷ f) Catastrophe losses (CATS) and reinstatement premiums = [Loss and loss adjustment expenses incurred - (CATS)] + [NPE +/(-) CYRIPS] - Loss ratio g) Accident year loss ratio, as adjusted (AYLR) = [Loss and loss adjustment expenses incurred - CATS - PYD] [NPE +/(-) Reinstatement premiums related to catastrophes (CYRIPS) +/(-) RIPS related to prior year catastrophes (PYRIPS) + (Additional) returned premium related to PYD on loss sensitive business ((AP)RP) + Adjustment for ceded premiums under reinsurance contracts related to prior accident years] h) Accident year combined ratio, as adjusted = AYLR + Expense ratio i) Prior year development net of (additional) return premium related to PYD on loss sensitive business = [Loss and loss adjustment expenses incurred - CATS - PYD] + [NPE +/(-) CYRIPS +/(-) PYRIPS + (AP)RP] - Loss ratio - CAT ratio ■ Premiums and deposits: includes direct and assumed amounts received and earned on traditional life insurance policies, group benefit policies and life-contingent payout annuities, as well as deposits received on universal life, investment-type annuity contracts, Federal Home Loan Bank (FHLB) funding agreements and mutual funds. Results from discontinued operations are excluded from all of these measures. AIG 20 20#21Non-GAAP Reconciliations Adjusted Pre-tax and After-tax Income - Consolidated (in millions) Pre-tax income from continuing operations Adjustments to arrive at Adjusted pre-tax income (loss) Changes in fair value of securities used to hedge guaranteed living benefits Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) Changes in the fair value of equity securities Loss (gain) on extinguishment of debt Net investment income on Fortitude Re funds withheld assets Net realized capital gains on Fortitude Re funds withheld assets Net realized capital gains on Fortitude Re funds withheld embedded derivative Net realized capital gains (a) (Income) loss from divested businesses Non-operating litigation reserves and settlements Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements Net loss reserve discount (benefit) charge Integration and transaction costs associated with acquiring or divesting businesses Restructuring and other costs Non-recurring costs related to regulatory or accounting changes Adjusted pre-tax income AIG Quarterly 1Q20 1Q21 2,558 $ 4,728 7 (22) 538 203 191 (22) 17 (8) (486) (173) (2,382) (3,494) (627) 216 (7) (6) 56 86 (8) (19) (32) 2 9 90 74 13 20 180 S 1,256 (a) Includes all net realized capital gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld assets. 21 21#22Non-GAAP Reconciliations Adjusted Pre-tax and After-tax Income - Consolidated (in millions) After-tax net income, including noncontrolling interests Noncontrolling interests (income) loss Net income attributable to AIG Dividends on preferred stock Net income attributable to AIG common shareholders Adjustments to arrive at Adjusted after-tax income (loss) (amounts net of Quarterly 1Q20 1Q21 $ 1,654 $ 3,930 95 (54) $ 1,749 S 3,876 7 7 $ 1,742 $ 3,869 tax, at U.S. statutory tax rate for each respective period, except where noted): Changes in uncertain tax positions and other tax adjustments (a) 5 (901) Deferred income tax valuation allowance charges (b) Changes in fair value of securities used to hedge guaranteed living benefits Changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains (losses) Changes in the fair value of equity securities Loss (gain) on extinguishment of debt Net investment income on Fortitude Re funds withheld assets Net realized capital gains on Fortitude Re funds withheld assets Net realized capital gains on Fortitude Re funds withheld embedded derivative Net realized capital gains (c)(d) 283 686 5 (17) 425 160 151 (17) 13 (6) (384) (137) (1,883) (2,729) (482) (Income) loss from discontinued operations and divested businesses (d) 171 (6) Non-operating litigation reserves and settlements (5) Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements (6) (15) AIG Net loss reserve discount (benefit) charge Integration and transaction costs associated with acquiring or divesting businesses Restructuring and other costs Non-recurring costs related to regulatory or accounting changes Noncontrolling interests primarily related to net realized capital gains (losses) of Fortitude Holdings' standalone results (e) Adjusted after-tax income attributable to AIG common shareholders Weighted average diluted shares outstanding Income (loss) per common share attributable to AIG common shareholders (diluted) Adjusted after-tax income per common share attributable to AIG common shareholders (diluted) (a) Three months ended March 31, 2021 includes the recent completion of audit activity by the IRS. (b) Three months ended March 31, 2021 includes an increase in the valuation allowance against a portion of certain tax attribute carryforwards of AIG's U.S. federal consolidated income tax group, as well as net valuation allowance release in certain foreign jurisdictions. (c) Includes all net realized capital gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld assets. (d) Includes the impact of non-U.S. tax rates which differ from the applicable U.S. statutory tax rate and tax-only adjustments. (e) Prior to June 2, 2020, noncontrolling interests was primarily due to the 19.9 percent investment in Fortitude by an affiliate of The Carlyle Group L.P. (Carlyle), which occurred in the fourth quarter of 2018. Carlyle was allocated 19.9 percent of Fortitude Holdings' standalone financial results through the June 2, 2020 closing date of the Majority Interest Fortitude Sale. Fortitude Holdings' results were mostly eliminated in AIG's consolidated income from continuing operations given that its results arose from intercompany transactions. Noncontrolling interests was calculated based on the standalone financial results of Fortitude Holdings. The most significant component of Fortitude Holdings' standalone results was the change in fair value of the embedded derivatives which changes with movements in interest rates and credit spreads, and which was recorded in net realized capital gains and losses of Fortitude Holdings. In accordance with AIG's adjusted after- tax income definition, realized capital gains and losses are excluded from noncontrolling interests. Subsequent to the Majority Interest Fortitude Sale, AIG owns 3.5 percent of Fortitude Holdings and no longer consolidates Fortitude Holdings in its financial statements as of such date. The minority interest in Fortitude Holdings is carried at cost within AIG's Other invested assets, which was $100 million as of March 31, 2021. 44 (25) 2 71 10 786 (77) $ 105 S 923 878.9 876.3 $ 1.98 $ 4.41 0.12 1.05 22#23Non-GAAP Reconciliations Book Value Per Common Share (in millions, except per common share data) Book Value Per Common Share Total AIG shareholders' equity Less: Preferred equity Total AIG common shareholders' equity (a) Less: Accumulated other comprehensive income (AOCI) Add: Cumulative unrealized gains and losses related to Fortitude Re Funds Withheld Assets Less: Deferred tax assets (DTA)* Total adjusted common shareholders' equity (b) Total common shares outstanding (c) Book value per common share (a+c) Adjusted book value per common share (b+c) March 31, December 31, 2020 2021 2020 $ 60,173 $ 485 62,679 485 $ 66,362 485 59,688 62,194 65,877 (994) 6,466 13,511 - 2,246 4,657 8,535 7.539 7,907 $ 52.147 S 50.435 $ 49.116 861.3 859.4 861.6 $ 69.30 $ 72.37 $ 76.46 60.55 58.69 57.01 Fortitude Re Funds Withheld Assets (in millions, except per common share data) Tangible Book Value Per Common Share Total AIG common shareholders' equity (a) Less Intangible Assets: Goodwill Value of business acquired Value of distribution channel acquired Other intangibles Total intangibles assets Less: Accumulated other comprehensive income (AOCI) Add: Cumulative unrealized gains and losses related to Less: Deferred tax assets (DTA)* March 31, 2020 2021 December 31, 2020 $ 59,688 $ 62,194 $ 65,877 3,989 4,079 4,074 297 123 126 526 487 497 329 309 319 5,141 4,998 5,016 (994) 6,466 13,511 2,246 4,657 8,535 7,539 7,907 Total adjusted tangible common shareholders' equity (b) 47.006 S 45.437 $ 44,100 Total common shares outstanding (c) 861.3 859.4 861.6 Adjusted tangible book value per common share (b+c) 54.58 $ 52.87 $ 51.18 Represents deferred tax assets only related to U.S. net operating loss and foreign tax credit carryforwards on a U.S. GAAP basis and excludes other balance sheet deferred tax assets and liabilities. * AIG 23#24Non-GAAP Reconciliations Return on Common Equity (in millions) Return On Common Equity Computations Actual or Annualized net income attributable to AIG common shareholders (a) Actual or Annualized adjusted after-tax income attributable to AIG common shareholders (b) Average AIG Common Shareholders' equity (c) Less: Average AOCI Add: Average cumulative unrealized gains and losses related to Fortitude Re funds withheld assets Less: Average DTA* Average adjusted common shareholders' equity (d) ROCE (a+c) Adjusted return on common equity (b+d) Quarterly 1Q20 1Q21 $ 6.968 $ 15.476 59 59 420 $ 3.692 62,439 $ 64,036 1,994 9,989 3,452 8,756 7,723 $ 51.689 11.2% $ 49.776 24.2% 0.8% 7.4% General Insurance (in millions) Quarterly 1Q20 1Q21 Adjusted pre-tax income $ 501 $ 845 Life and Retirement (in millions) Adjusted pre-tax income Quarterly 1Q20 1Q21 $ 601 $ 941 Interest expense on attributed financial debt 146 145 Interest expense on attributed financial debt 75 70 Adjusted pre-tax income including Adjusted pre-tax income including attributed interest attributed interest expense 355 700 expense 526 871 Income tax expense 85 161 Income tax expense 101 172 Adjusted after-tax income $ 270 $ 539 Adjusted after-tax income 425 $ 699 Dividends declared on preferred stock 3 3 Dividends declared on preferred stock 2 2 Adjusted after-tax income attributable to common shareholders (a) $ 267 $ 536 Adjusted after-tax income attributable to common shareholders (a) S 423 $ 697 Ending adjusted segment common equity $ 24,934 $ Average adjusted segment common equity (b) 24,997 25,265 25,155 Ending adjusted segment common equity $ 20,148 $ 20,226 Average adjusted segment common equity (b) 18,974 19,699 Return on adjusted segment common equity (a+b) 4.3 % 8.5 % Return on adjusted segment common equity (a+b) 8.9 % 14.2 % Total segment shareholder's equity $ 24,417 $ Less: Preferred equity 192 Total segment common equity 24.225 26,039 196 25,843 Total segment shareholder's equity $ 22,809 $ 26,568 Less: Preferred equity 134 136 Total segment common equity 22,675 26,432 Less: AOCI (709) 728 Less: AOCI 2,527 8,366 Add: Cumulative unrealized gains and losses related to Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets 150 Total adjusted segment common equity 24.934 $ 25.265 Fortitude Re funds withheld assets Total adjusted segment common equity 2,160 $ 20.148 $ 20.226 AIG * Represents deferred tax assets only related to U.S. net operating loss and foreign tax credit carryforwards on a U.S. GAAP basis and excludes other balance sheet deferred tax assets and liabilities. 24#25Non-GAAP Reconciliations Accident Year Loss Ratio, as adjusted, and Accident Year Combined Ratio, as adjusted General Insurance General Insurance - North America Quarterly Quarterly Loss ratio 1Q20 66.8 1Q21 65.6 Loss ratio 1Q20 72.7 1Q21 79.6 Catastrophe losses and reinstatement premiums Prior year development (6.9) (7.3) Catastrophe losses and reinstatement premiums (6.8) (15.2) 0.9 0.9 Prior year development 0.7 2.4 Accident year loss ratio, as adjusted 60.8 59.2 Accident year loss ratio, as adjusted 66.6 66.8 Acquisition ratio 21.9 20.2 Acquisition ratio 20.1 16.8 General operating expense ratio 12.8 13.0 General operating expense ratio 11.0 12.0 Expense ratio 34.7 33.2 Expense ratio 31.1 28.8 Combined ratio 101.5 98.8 Combined ratio 103.8 108.4 Accident year combined ratio, as adjusted 95.5 92.4 Accident year combined ratio, as adjusted 97.7 95.6 General Insurance - North America - General Insurance - North America - Commercial Lines Quarterly Personal Insurance Quarterly 1Q20 1Q21 1Q20 1Q21 Loss ratio 73.4 80.1 Loss ratio 70.8 77.2 Catastrophe losses and reinstatement premiums (6.3) (15.4) Catastrophe losses and reinstatement premiums (7.9) (14.5) Prior year development 3.0 2.6 Prior year development (5.1) 1.6 Accident year loss ratio, as adjusted 70.1 67.3 Accident year loss ratio, as adjusted 57.8 64.3 Acquisition ratio 16.3 15.8 Acquisition ratio 29.6 23.1 General operating expense ratio 11.2 10.8 General operating expense ratio 10.6 18.5 Expense ratio 27.5 26.6 Expense ratio 40.2 41.6 Combined ratio 100.9 106.7 Combined ratio 111.0 118.8 Accident year combined ratio, as adjusted 97.6 93.9 Accident year combined ratio, as adjusted 98.0 105.9 AIG 25#26Non-GAAP Reconciliations Accident Year Loss Ratio, as adjusted, and Accident Year Combined Ratio, as adjusted General Insurance - International Quarterly General Insurance - International - Commercial Lines Quarterly 1Q20 1Q21 1Q20 1Q21 Loss ratio 61.9 56.0 Loss ratio 66.8 57.1 Catastrophe losses and reinstatement premiums (7.0) (1.9) Catastrophe losses and reinstatement premiums (11.2) (3.2) Prior year development 1.1 (0.1) Prior year development 1.5 Accident year loss ratio, as adjusted 56.0 54.0 Accident year loss ratio, as adjusted 57.1 53.9 Acquisition ratio 23.4 22.5 Acquisition ratio 20.7 19.8 General operating expense ratio 14.2 13.7 General operating expense ratio 13.9 13.1 Expense ratio 37.6 36.2 Expense ratio 34.6 32.9 Combined ratio 99.5 92.2 Combined ratio 101.4 90.0 Accident year combined ratio, as adjusted 93.6 90.2 Accident year combined ratio, as adjusted 91.7 86.8 General Insurance - International - Personal Insurance Loss ratio Catastrophe losses and reinstatement premiums Prior year development t year loss ratio, as adjusted Accident Acquisition ratio General operating expense ratio Expense ratio Combined ratio Accident year combined ratio, as adjusted General Insurance - Global Commercial Lines Quarterly Quarterly 1Q20 1Q21 1Q20 1Q21 56.9 54.7 Loss ratio 70.4 69.1 (2.7) (0.4) Catastrophe losses and reinstatement premiums (8.6) (9.6) 0.6 (0.2) Prior year development 2.3 1.3 54.8 54.1 Accident year loss ratio, as adjusted 64.1 60.8 26.2 25.6 Acquisition ratio 18.3 17.7 14.5 14.3 General operating expense ratio 12.4 11.9 40.7 39.9 Expense ratio 30.7 29.6 97.6 94.6 Combined ratio 101.1 98.7 95.5 94.0 Accident year combined ratio, as adjusted 94.8 90.4 General Operating Expenses - Change in Constant Dollar General Insurance Foreign exchange effect on general operating expenses: Change in general operating expenses Increase (decrease) in original currency AIG Foreign exchange effect Increase (decrease) as reported in U.S. dollars 1Q21 (4) % 2 (2) % 26#27Non-GAAP Reconciliations Net Premiums Written - Change in Constant Dollar General Insurance Foreign exchange effect on worldwide premiums: Change in net premiums written Increase (decrease) in original currency Foreign exchange effect Increase (decrease) as reported in U.S. dollars Increase (decrease) in original currency Impact of PCG and Travel Increase (decrease) in original currency adjusted for PCG and Travel Global - Commercial Lines 1Q21 Global - Personal Insurance 1Q21 International - Commercial Lines 1Q21 International - Personal Insurance 1Q21 22.0 % 3.4 25.4 % (22.7) % 3.4 (19.3) % 13.1 % 7.2 (6.0) % 5.6 20.3 % (0.4) % (22.7) % 21.1 (1.6) % Reconciliation of Net Investment Income Quarterly (in millions) Net investment income per Consolidated Statements of Operations Changes in fair value of securities used to hedge guaranteed living benefits Changes in the fair value of equity securities Net investment income on Fortitude Re funds withheld assets 1Q20 1Q21 $ 2,508 $ 3,657 (13) (19) 191 (22) (486) Net realized capital gains (losses) related to economic hedges and other Total Net investment income - APTI Basis 13 61 $ 2,699 $ 3,191 Add: Investment expenses Add: Consolidation and eliminations 148 112 145 183 AIG investment income, APTI basis $ 2.992 $ 3.486 Consolidation and eliminations (145) (183) Net realized capital (gains) losses related to economic hedges and other (13) (61) Gross investment income, APTI basis $ 2,834 $ 3,242 Less: Impact of Fortitude Re prior to deconsolidation (119) Gross investment income, APTI basis, excluding the impact of Fortitude Re for all periods, including periods prior to deconsolidation $ 2,715 $ 3.242 Total Net investment income - APTI Basis $ 2,699 $ 3,191 Less: Impact of Fortitude Re prior to deconsolidation (119) Total Net investment income - APTI Basis, excluding the impact of Fortitude Re for all periods, including periods prior to deconsolidation $ 2.580 $ 3.191 AIG 27#28Non-GAAP Reconciliations Premiums (in millions) AIG Quarterly Individual Retirement: Premiums 1Q20 1Q21 41 $ 25 Deposits 3,079 3,349 Other (4) (1) Premiums and deposits $ 3,116 $ 3,373 Individual Retirement (Fixed Annuities): Premiums S 41 $ 25 Deposits 616 615 Other (10) (2) Premiums and deposits $ 647 $ 638 Individual Retirement (Variable Annuities): Premiums $ $ Deposits 853 1,197 Other 6 1 Premiums and deposits $ 859 $ 1,198 Individual Retirement (Index Annuities): Premiums $ GA Deposits 1,346 1,388 Other Premiums and deposits $ 1,346 $ 1,388 Individual Retirement (Retail Mutual Funds): Premiums S $ SA Deposits 264 149 Other Premiums and deposits $ 264 $ 149 Group Retirement: Premiums $ 6$ 4 Deposits 1,849 1,814 Other Premiums and deposits Life Insurance: $ 1,855 $ 1,818 Premiums $ 463 $ 532 Deposits 403 397 Other 196 202 Premiums and deposits $ 1,062 $ 1,131 Institutional Markets: Premiums S 757 $ 39 Deposits 211 34 Other 8 7 Premiums and deposits $ 976 $ 80 Total Life and Retirement: Premiums $ 1,267 $ 600 Deposits 5,542 5,594 Other 200 208 Premiums and deposits $ 7,009 $ 6,402 28