#1AIG Fourth Quarter and Full Year 2020 Financial Results Presentation February 17, 2021 Note (March 15, 2021): Pages 13, 25, and 37 have been updated to reflect revisions to segment balance sheets, debt and interest allocated to segments and return on adjusted segment common equity.#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: the adverse impact of COVID-19, including with respect to AIG's business, financial condition and results of operations; changes in market and industry conditions, including the significant global economic downturn, volatility in financial and capital markets, 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; 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; 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 the valuation of AIG's investments; 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; changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill; and such other factors discussed in Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) and Part I, Item 1A. Risk Factors in AIG's Annual Report on Form 10-K for the year ended December 31, 2020 (which will be filed with the Securities and Exchange Commission), Part I, Item 2. MD&A in AIG's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020, Part I, Item 2. MD&A in AIG's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2020, Part I, Item 2. MD&A in AIG's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, and Part II, Item 7. MD&A and Part I, Item 1A. Risk Factors in AIG's Annual Report on Form 10-K for the year ended December 31, 2019. 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. 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. 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 Fourth Quarter 2020 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#34Q20 and FY'20 APTI reflect continued improvement in General Insurance accident year, as adjusted*, underwriting profitability and strong Life and Retirement APTI 4Q20 Financial Results ■ ■ ■ Adjusted after-tax income attributable to AIG common shareholders (AATI)* of $827M ($0.94 per diluted common share) and adjusted pre-tax income (APTI)* of $1.1B reflecting: - Improvement in the General Insurance accident year combined ratio (AYCR), as adjusted*, by 2.9 pts driven by North America and International Commercial Lines and International Personal Insurance - Increased Life and Retirement APTI with strong net investment income (NII) driving improved APTI in Individual and Group Retirement and Institutional Markets Lower NII, APTI basis*, primarily driven by the sale of Fortitude Group Holdings LLC (Fortitude) on June 2, 2020; Excluding the impact of Fortitude in 4Q19, NII, APTI basis*, increased $262M primarily reflecting higher private equity and hedge fund returns Net loss attributable to AIG common shareholders of $60M ($0.07 per common share) reflects $1.2B of after-tax net realized capital losses, principally from the non-economic impact of the non-performance risk adjustment on the fair value of variable annuity embedded derivatives, net of hedges, and from losses on other derivatives and hedges Return on Common Equity (ROCE) and Adjusted ROCE* were (0.4)% and 6.7%, respectively, for 4Q20, annualized Book value per common share was $76.46, an increase of 3.5% compared to September 30, 2020; Adjusted book value per common share* was $57.01, an increase of 0.4% from September 30, 2020 FY'20 Financial Results AIG " ■ AATI of $2.2B ($2.52 per diluted common share) and APTI of $3.0B reflecting: - Improvement in the General Insurance AYCR, as adjusted, by 1.9 pts driven by North America and International Commercial Lines and International Personal Insurance Life and Retirement APTI of $3.5B despite COVID-19 mortality and base spread compression, driven by strong equity market performance and higher call and tender income - $2.4B of catastrophe losses, net of reinsurance, (CATS) in General Insurance including $1.3B of non-COVID-19 CATS from windstorms and hailstorms, wildfires, civil unrest and other events, and $1.1B of COVID-19 CATS, primarily in Commercial Property, Validus Re, Contingency and Travel - Lower FY'20 NII, APTI basis, primarily driven by the sale of Fortitude, lower fair value option (FVO) bond income, and yield compression on available for sale securities Net loss attributable to AIG common shareholders of $6.0B ($6.88 per common share) primarily driven by a $6.7B after- tax loss from the sale and deconsolidation of Fortitude in 2Q20. The sale, for which AIG received $2.2B in consideration at closing, improved AIG's risk profile and reduced exposure to long-tail runoff liabilities and related interest rate risk ROCE and Adjusted ROCE were (9.4)% and 4.4%, respectively, for FY'20 * 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#4Financial flexibility remains robust with strong balance sheet and lower leverage; Total debt & preferred stock leverage of 28.4% reflects $708M debt repayment in December 2020; $1.5B senior notes redeemed in February 2021 Capital Structure ($B) Risk Based Capital (RBC) Ratios4 $91.1 $93.2 $1.5 $1.6 Hybrids 1 Year Life and Retirement Companies General Insurance Companies 1,2 $24.4 Financial Debt $25.0 $0.5 $0.8 ■NCI $6.6 $8.9 $0.5 $8.1 $7.9 $0.5 AOCI ³ 2019 402% (CAL) 419% (ACL) ■Preferred Equity Total Equity: $64.6 Total Equity: $67.2 ■Tax Attribute DTA $48.9 $49.1 ■ Adjusted S/E 2020 Estimated 5 425% -435% (CAL) 450%-460% (ACL) September 30, 2020 December 31, 2020 Sept. 30, Dec. 31, Ratios: Hybrids / Total capital Pending finalization of Statutory financials Credit Ratings6 2020 2020 1.7% 1.7% S&P Moody's Fitch A.M. Best Financial debt / Total capital (incl. AOCI) Total Hybrids & Financial debt / Total capital 27.4% 26.2% 29.1% 27.9% AIG Senior Debt BBB+ Baa1 BBB+ NR Preferred stock / Total capital (incl. AOCI) 0.5% 0.5% Total debt and preferred stock / Total capital (incl. AOCI) 29.6% 28.4% General Insurance FSR A+ A2 A Total debt and preferred stock / 32.0% 31.4% Total capital (ex. AOCI)²* 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's funds withheld assets; September 30, 2020 AOCI is computed as GAAP AOCI of $11.0B excluding $4.4B of cumulative unrealized gains and losses related to Fortitude Re's 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 Companies; Negative, Life Insurance Companies; Rating Watch Negative, AIG Sr. Debt; A.M. Best Outlook: Stable. For General Insurance companies FSR and Life and Retirement companies FSR, ratings only reflect those of the core insurance companies. 4#5Fourth Quarter 2020 Financial Detail AIG 5#6APTI of $1.1B reflects continued improvement in Commercial Lines AYCR, as adjusted, strong Life and Retirement results reflecting higher NII, APTI basis ($M, except per common share amounts) Adjusted pre-tax income (loss): General Insurance Life and Retirement Other Operations¹ 4Q19 4Q20 Variances $778 $809 $31 Total adjusted pre-tax income $1,211 AATI attributable to AIG common shareholders 858 1,027 (425) (720) (295) $1,116 ($95) $923 $827 ($96) 169 AATI per diluted share attributable to $1.03 $0.94 ($0.09) AIG common shareholders Net income (loss) attributable to $922 AIG common shareholders ($60) ($982) Consolidated adjusted ROCE 7.3% General Insurance underwriting ratios: Loss ratio 65.6% 70.2% 6.7% (0.6) pts B/(W) (4.6) pts Less: impact on loss ratio Catastrophe losses and reinstatement premiums Prior year development 2.2% (6.5%) (9.0%) (0.9%) Adjustments for ceded premium under reinsurance contracts and other 0.3% 0.0% (2.5) pts (3.1) pts (0.3) pts Accident year loss ratio, as adjusted 61.6% Expense ratio 34.2% 60.3% 32.6% Accident year combined ratio, as adjusted 95.8% 92.9% Calendar year combined ratio 99.8% 102.8% 1.3 pts 1.6 pts 2.9 pts (3.0) pts AIG Key Takeaways General Insurance APTI increased by $31M primarily due to: 2.9 pt improvement in AYCR, as adjusted, and $214M increase in NII, APTI basis, reflecting higher alternative investment income; partially offset by $134M increase in CATS primarily due to higher non-COVID-19 CATs and the ongoing impact of COVID-19 CATS related to Travel, Contingency and Validus Reinsurance, Ltd., and 3.1 pt decrease in prior year development, net of reinsurance, (PYD) ratio reflecting unfavorable PYD in 4Q20 compared to favorable PYD in 4Q19; 4Q19 included favorable PYD from California wildfire subrogation recoverables Life and Retirement APTI increased $169M reflecting higher NII driven by private equity returns, which are reported on a one quarter lag, and higher call and tender income due to favorable impacts from lower interest rates and tighter credit spreads as well as lower general operating expenses (GOE). The increase in APTI was partially offset by base spread compression and, in Life Insurance, impacts from COVID-19 mortality claims Other Operations adjusted pre-tax loss (APTL) was $720M, including $292M of reductions from consolidation and eliminations, compared to APTL of $425M, including $134M of reductions from consolidation and eliminations, in the prior year quarter. The increase in APTL in consolidation and eliminations reflects the impact of consolidated investment entities. Before consolidation and eliminations, the increase in APTL was primarily due to lower NII associated with available for sale securities; the sale of Fortitude in 2Q20, which had APTI of $70M in 4Q19; and increased interest expense related to debt issuances in 2Q20 1) Other Operations is primarily comprised of corporate, our institutional asset management business and consolidation and eliminations. 6#7Gross investment income (GII), APTI basis¹*, decreased $186M reflecting the June 2020 sale of Fortitude; Excluding Fortitude from 4Q19, GII, APTI basis, increased $324M reflecting higher private equity and hedge fund returns Invested Assets & Gross Investment Income, APTI Basis¹ 4Q20 Invested Assets Gross Investment Income, APTI basis¹ ($M) $B Fixed Maturities Alternatives All Other $124 ■Interest & dividends 4Q19 $680 $14 $818 General $75.9 $5.3 $2.8 Insurance 4Q20 $553 $452 $34 $1,039 4Q19 $2,060 Life & $100 $67 $2,227 Alternative investments ■All other $187.3 $3.9 $4.4 Retirement 4Q20 $2,063 $293 $79 $2,435 4Q19 $547 $64 $116 $727 Other $10.1 ($1.2) $7.4 Consolidation and eliminations and other adjustments Operations¹ $110 4Q20 $46 $32 $188 4Q19 ($209) $3,287 $288 $197 $3,563 Total AIG $273.3 $8.0 $14.6 4Q20 ($285) $2,662 $855 $145 $3,377 3.72% 2.91% 4Q20 and 4Q19 Annualized Investment Yields Fixed Maturities² Alternative Investments³ 4.70% 4.41% 4.49% Total Alternative Investments 3.89% Consolidated AIG Hedge Funds & Private Equity 45.34% 46.54% 35.33% 31.60% 15.39% 8.90% General Insurance Life & Retirement Consolidated AIG 4Q19 4Q20 AIG 13.26% 3.92% General Insurance Life & Retirement Consolidated AIG Hedge Funds 4Q19 ■4Q20 6.12% 27.12% 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) 4Q19 includes GII of $510M ($498M on a net basis) related to investment income on Fortitude assets. Excluding Fortitude, 4Q19 GII, APTI basis, is $3,053M and NII, APTI basis, is $2,964M. 2) 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. 3) Alternative investment income includes income on hedge funds, private equity funds and affordable housing partnerships. 7#8AIG's corporate debt investment portfolio is well diversified by industry sector; credit quality remains strong with limited ratings downgrades in 4Q20 Fixed Maturity Securities by NAIC Designation December 31, 2020 - $240.5B1 Corporate Debt by Industry Sector December 31, 2020 – $142.0B1 NAIC 2 31% NAIC 3-6 8% NAIC 1 61% Other $111.9 Basic materials $16.7 ■Energy ■Capital goods $3.9 Consumer cyclical $9.6 ■Consumer noncyclical $6.1 ■Communications $8.4 Utilities $16.5 ■Financial institutions $7.2 $16.1 $28.0 $0.9 $3.4 $1.5 Fair value of total Fixed Maturity $1.4 $2.8 $3.8 $1.6 $27.4 securities increased 2% since September 30, 2020 $1.9 $10.7 $2.52 General Insurance Life and Retirement Other Operations Note: Amounts shown for segments are before consolidation and eliminations. AIG 1) Asset balances exclude Fortitude Re Funds Withheld Assets. 2) Other Operations by industry sector breakout is not shown due to scale. 8#94Q19 and 4Q20 noteworthy items ($M, except per share amounts) CATS excluding General Insurance COVID-19 CATS General Insurance COVID-19 CATS Favorable/(unfavorable) PYD 4Q19 - Income / (Loss) Pre-tax After-tax¹ 4Q20 - Income / (Loss) EPS Pre-tax After-tax¹ diluted² EPS- diluted² ($413) ($326) ($0.36) ($377) ($298) ($0.34) (178) (141) (0.16) 153 121 0.13 (49) (39) (0.04) Investment performance: Better than expected alternative investment returns³,4 59 47 0.05 613 484 0.56 Better than expected fair value changes on fixed maturity securities other accounted under FVO3 29 23 0.03 41 32 0.04 Total noteworthy items - APTI basis ($172) ($136) ($0.15) $50 $40 $0.05 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 4Q20 Financial Supplement. 3) The annualized expected rate of return for 4Q19 and 4Q20 is 8% and 6% for alternative investments and 6% and 4% for FVO fixed maturity securities, respectively. AIG 4) Alternative investment returns reflect General Insurance and Life and Retirement alternative investment income only and exclude Other Operations, which includes the impact of consolidation and eliminations. On an AIG consolidated basis, better than expected alternative investment returns were $37M, pre-tax, in 4Q19 and $491M, pre-tax, 9 in 4Q20.#104Q19 4Q20 Net premiums written $5,830 $5,565 Net premiums earned $6,372 $5,993 General Insurance: 2.9 pts better AYCR, as adjusted; 4.4 pt improvement in Global Commercial Lines due to improved business mix as a result of underwriting actions Net Premiums Written (NPW) ($M) ($M) Global Personal Insurance -22.3% Global Commercial Lines +8.5% $3,654 $3,369 $2,461 Loss and loss adjustment expense 4,180 4,210 Acquisition expenses 1,362 1,186 $1,662 Change $1,911 $1,554 primarily driven by the General operating expenses 818 768 Underwriting income (loss) $12 ($171) $1,815 $1,992 Net investment income $766 $980 $1,637 formation of Syndicate 2019 and lower Travel premiums due to COVID-19 $1,542 $824 Adjusted pre-tax income $778 $809 4Q19 4Q20 Note: Impact of CATS¹, pre-tax ($411) ($545) ■North America 4Q19 International $369 4Q20 Calendar Year Combined Ratios (CYCR)² Accident Year Combined Ratios (excl. CATS) walk AYCR, as adjusted, +3.0 pts 99.8% 102.8% improved 2.9 pts 95.8% 92.9% 6.5% 12.8% with 2.5 pt 9.0% 0.9% increase in CATS 12.8% 1.3% 1.6% 34.2% 32.6% 21.4% 19.8% 61.6% 60.3% 61.6% 60.3% 4Q19 AYLR U/W Actions/Mix ■AYLR, As Adj. Expense Ratio 4Q20 Expense Ratio -2.2% ■AYLR, As Adj. 4Q19 4Q20 ■Acq. Ratio GOE Ratio ■PYD Ratio ■CAT Ratio 1) 4Q20 includes non-COVID-19 CATS of $367M and COVID-19 CATS of $178M, pre-tax. AIG 2) 4Q19 CYCR includes adjustments for ceded premium under reinsurance contracts and other of (0.3) pts. 10#11General Insurance: 4.0 pt improvement in North America Commercial Lines AYCR, as adjusted; Personal Insurance impacted by Travel and Syndicate 2019 ($M) Net premiums written Key Takeaways: ■ North America (NA) Commercial Lines NPW grew 10% from the prior year quarter reflecting strong rate momentum, improved retention and higher writings in AIG Re. NA Personal Insurance NPW decreased as a result of cessions pursuant to a series of quota share reinsurance agreements placed in 2Q20 to form Syndicate 2019 and the adverse impact of COVID-19 on the Travel business ■ NA Commercial Lines AYCR, as adjusted, improved 4.0 pts reflecting improved business mix and rate increases, as well as expense discipline 4Q19 $2,639 4Q20 $2,361 Commercial Lines 1,815 1,992 Personal Insurance 824 369 Net premiums earned $2,948 $2,603 Commercial Lines Personal Insurance 2,141 807 2,289 314 ($96) ($389) Commercial Lines (188) (285) Personal Insurance 92 (104) ■ Unfavorable PYD of $51M with $26M in Commercial Lines and $25M in Personal Insurance; PYD includes $52M of favorable amortization from the ADC Note: Impact of CATS, pre-tax ($313) ($477) Underwriting loss ■ NA Personal Insurance AYCR, as adjusted, increased 10.4 pts due to impact on the loss ratio from the change in business mix driven by a series of quota share reinsurance agreements as described above and the adverse impact of COVID-19 on Travel. The GOE ratio was also impacted negatively by the reduction in net premiums earned, offset slightly by a lower acquisition ratio ■ CATS of $477M; $371M related to non-COVID-19 CATS and $106M related to COVID-19 CATS North America Combined Ratios¹ Total Commercial Lines Personal Insurance 103.2% 114.9% 108.8% 112.4% 133.2% 88.6% 10.4% 18.0% 8.7% 22.6% 17.4% 14.8% (2.6%) 2.2% 3.2% 8.0% 1.4% (17.8%) 96.1% 94.7% 97.6% Change 102.6% AYCR, as 93.6% 92.2% AYCR, as primarily 10.1% adjusted, 10.4% 10.6% adjusted, 20.1% 9.1% 8.9% driven by the 19.1% 13.5% improved 15.6% improved 14.0% formation of 1.4 pts 4.0 pts 34.0% 27.1% Syndicate AYLR, as 66.9% 68.7% 73.5% 70.5% 2019 and lower Travel adjusted, 49.3% premiums due 55.4% improved 3.0 pts to COVID-19 4Q20 CYCR CAT Ratio 4Q19 4Q19 PYD Ratio AYCR, As adjusted GOE Ratio Acquisition Ratio AYLR, As adjusted AIG 1) 4Q19 CYCR includes adjustments for ceded premium under reinsurance contracts and other of (0.7) pts, (0.7) pts, and (0.6) pts in Total North America, North America Commercial Lines, and North America Personal Insurance, respectively. 4Q20 4Q19 4Q20 11#12Commercial Lines 4Q19 $3,191 1,554 4Q20 $3,204 1,662 Personal Insurance 1,637 1,542 Net premiums earned $3,424 $3,390 Commercial Lines 1,720 1,771 General Insurance: Strong 3.9 pt improvement in International AYCR, as adjusted, due to improved business mix along with rate increases ($M) Net premiums written Key Takeaways: ■ International Commercial Lines NPW grew 7% from the prior year quarter reflecting strong rate momentum and improving retention across most lines. International Personal Insurance NPW decreased due to the impact from COVID-19 on the Travel business ■ International Commercial Lines AYCR, as adjusted, improved 4.9 pts due to enhanced risk selection along with rate increases Personal Insurance 1,704 1,619 ■ International Personal Insurance AYCR, as adjusted, improved 2.9 pts reflecting lower claims frequency and changes in business mix Underwriting income $108 $218 Commercial Lines 52 138 Personal Insurance 56 80 Note: Impact of CATS, pre-tax ($98) ($68) ■ CATS of $68M; ($4M) CAT recovery related to non-COVID-19 CATS and $72M related to COVID-19 CATS ■ Favorable PYD of $6M driven by $21M favorable PYD in Commercial Lines offset by $15M unfavorable PYD in Personal Insurance International Combined Ratios Total Commercial Lines Personal Insurance 93.6% 96.9% 96.9% 92.1% 96.8% 95.0% 3.3% 3.2% 2.1% 3.0% 4.0% (1.9%) (0.2%) (0.2%) (3.5%) 0.9% (1.1%) 95.6% 91.7% 94.1% 97.0% 94.1% AYCR, as AYCR, as 89.2% AYCR, as 15.2% adjusted, 14.7% 14.4% 16.0% adjusted, 13.9% adjusted, 15.4% improved improved improved 23.3% 20.3% 3.9 pts 23.0% 4.9 pts 19.4% 26.3% 2.9 pts 26.9% AYLR, as AYLR, as 57.1% adjusted, 59.4% adjusted, 54.0% 55.9% improved improved 3.1 pts 3.5 pts 4Q19 4Q20 4Q19 4Q20 CYCR CAT Ratio PYD Ratio AYCR, As adjusted GOE Ratio Acquisition Ratio 4Q19 AYLR, As adjusted AYLR, as 54.7% adjusted, 51.8% improved 2.9 pts 4Q20 AIG 12#13Life and Retirement: Strong increase in APTI compared to 4Q19 driven by higher NII and lower GOE, partially offset by base spread compression and COVID-19 mortality Adjusted Pre-Tax Income (APTI) ($M) +20% or $1,027 $858 $127 +$169M $82 $30 $67 $318 $209 $500 $552 Key Takeaways 4Q20 APTI reflects higher NII, APTI basis, driven by private equity returns, which are reported on a one quarter lag, and favorable impacts from lower interest rates and tighter credit spreads resulting in higher call and tender income; and lower GOE. The increase in APTI was partially offset by base spread compression and, in Life Insurance, impacts from COVID-19 mortality claims Favorable GOE reflects AIG 200 efficiencies and other cost savings as a result of COVID-19 Premiums and deposits rose 4% benefitting from strong GIC1 demand in Institutional Markets, while Individual and Group Retirement continue to recover from the broad industry sales channel disruptions resulting from COVID-19 and headwinds from low interest rates 4Q19 ■Individual Retirement 4Q20 Group Retirement ■Life Insurance ■Institutional Markets Premiums and Deposits ($M) Noteworthy Items ($M, unless noted) $7,125 +4% $7,400 4Q19 4Q20 Variance $551 $1,287 $1,106 $1,156 Return on adjusted segment common equity (Annualized) 14.3% 16.0% 1.7% -5% $2,312 $2,199 Noteworthy Items ($M) -13% Return on alternative investments $3,156 $2,758 4Q19 4Q20 Other yield enhancements Includes: Fair value changes on Fixed Maturity Securities Other accounted under FVO SA 4Q19 4Q20 Variance $ 101 $ 293 $ 192 $ 93 $ 206 $ 113 ■Individual Retirement Group Retirement All other yield enhancements $ 16 $ 19 $ 3 $ 77 $ 187 $ 110 Life Insurance ■Institutional Markets Note (March 15, 2021): Return on adjusted segment common equity has been updated to reflect revisions to segment balance sheets and debt and interest AIG allocated to segments. 1) GIC is defined as Guaranteed Investment Contracts. 13#14Life and Retirement: Individual and Group Retirement APTI up 10% and 52%, respectively, driven by strong equity markets and favorable impacts from lower interest rates and tighter credit spreads, partially offset by base spread compression Premiums and Deposits ($M) Individual Retirement* Net Flows ($M) Assets Under Administration ($B) APTI ($M) $2,758 (-13% vs. 4Q19) ($878) $ 163.4 $552 Base Net Investment Spreads (+5% vs. 4Q19) (+10% vs. 4Q19) Total Net Investment Spreads 2.89% 3.31% 3.28% 3.44% 2.55% 2.59% 1.75% 2.02% 2.19% 2.28% 1.43% 1.40% Key Takeaways 4Q20 vs 4Q19 APTI results reflect Favorable impacts from: ☐ Equity markets resulting in higher fees and favorable alternatives, mainly from private equity returns Lower interest rates and tighter credit spreads Total investment spreads Unfavorable impacts from: Base spread compression Other Key Metrics Favorable impacts from: Assets under administration growth Net flows Fixed Annuities Variable and Index Annuities Fixed Annuities Variable and Index ■4Q19 3Q20 4Q20 ■ 4Q19 3Q20 Annuities 4Q20 Group Retirement (+10% vs. 4Q19) (+52% vs. 4Q19) Premiums and Deposits ($M) Net Flows $2,199 (-5% vs. 4Q19) ($M) ($153) Assets Under Administration ($B) $130.1 APTI ($M) $318 Base Net Investment Spreads Total Net Investment Spreads 1.78% 2.43% 2.18% 1.97% 1.55% 1.54% ■4Q19 3Q20 4Q20 4Q19 3Q20 4Q20 AIG * Includes Retail Mutual Funds Key Takeaways 4Q20 vs 4Q19 APTI results reflect Favorable impacts from: Equity markets resulting in higher fees, lower DAC amortization and favorable alternatives, mainly from private equity returns Lower interest rates and tighter credit spreads Lower GOE Total investment spreads Unfavorable impacts from: Base spread compression Other Key Metrics Favorable impacts from Net flows Assets under administration growth 14#15Life and Retirement: Life Insurance APTI reflects COVID-19 mortality impact, offset in part by strong private equity returns and favorable impacts from lower interest rates and tighter credit spreads; Institutional Markets APTI reflects strong private equity returns and growth in reserves ($M) New Business Sales Domestic US International Premiums and Deposits APTI Life Insurance Institutional Markets $104 (-5% vs. 4Q19) 65% 35% $1,156 (+5% vs. 4Q19) $30 (-55% vs. 4Q19) $127 (+55% vs. 4Q19) ($M) APTI Premiums and Deposits ($M) GAAP Reserves ($B) $27.3 $8.1 $23.6 $1,287 $6.7 $0.1 $2.2 $0.6 $2.1 $850 $5.1 $5.0 Key Takeaways 4Q20 vs 4Q19 APTI results reflect Favorable impacts from: ◉ Equity markets returns from favorable alternatives, mainly higher private equity returns Lower interest rates and tighter credit spreads ■ Lower GOE Unfavorable impacts from: " Mortality, driven by COVID-19 Lower reinvestment rates Other Key Metrics Unfavorable impacts from: " New business sales impact on APTI Key Takeaways 4Q20 vs 4Q19 APTI results reflect Favorable impacts from: " Equity markets returns from favorable alternatives, mainly higher private equity returns Higher base investment income, growth in reserves Other Key Metrics Favorable impacts from: " Growth in reserves, including 4Q20 GIC issuance $551 $6-$1 $4 $8.2 $5.9 $450 $369 $94 4Q19 $64 4Q20 Structured Settlements PRT $3.2 4Q19 ■COLI/BOLI PPVUL/PPVA $3.6 4Q20 ■SVW GIC AIG Definitions: GIC = Guaranteed Investment Contracts | SVW = Stable Value Wrap | COLI/BOLI = Corporate and Bank-owned life insurance | PRT = Pension Risk Transfer | PPVUL/PPVA = Private placement variable life and annuities 15#16Other Operations: APTL increased principally due to higher consolidation and eliminations from consolidated investment entities, the sale of Fortitude in 2Q20, as well as higher interest expense from May 2020 bond issuance AIG ($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: 4Q19 4Q20 ($301) ($519) 10 91 ($291) ($428) (126) (285) (8) (7) (134) (292) ($425) ($720) ■ Fourth quarter APTL was $720M, including $292M of reductions from consolidation and eliminations, compared to APTL of $425M, including $134M of reductions from consolidation and eliminations, in the prior year quarter. The increase in consolidation and eliminations from 4Q19 reflects the impact of consolidated investment entities ☐ Before consolidation and eliminations, the increase in APTL was primarily due to lower NII associated with available for sale securities; the sale of Fortitude in 2Q20, which had APTI of $70M in 4Q19; and increased interest expense related to debt issuances in 2Q20 16#17Full Year 2020 Financial Detail AIG 17#18FY'20 APTI of $3.0B reflects higher CATS, including COVID-19, and lower NII than the prior year; General Insurance AYCR, as adjusted, improved 1.9. pts; Life and Retirement APTI nearly flat ($M, except per common share amounts) Adjusted pre-tax income (loss): General Insurance Life and Retirement Other Operations¹ Total adjusted pre-tax income FY'19 FY'20 Variances Key Takeaways $3,533 $1,901 ($1,632) 3,553 3,531 (22) General Insurance APTI decreased by $1.6B from FY'19 primarily due to: (1,616) (2,429) (813) AATI attributable to AIG common shareholders AATI per diluted share attributable to AIG common shareholders Net income (loss) attributable to AIG common shareholders Consolidated adjusted ROCE $5,470 $3,003 ($2,467) $4,078 $2,201 ($1,877) $4.58 $2.52 ($2.06) $3,326 ($5,973) ($9,299) 8.3% 4.4% General Insurance underwriting ratios: Loss ratio 65.2% 71.0% (3.9) pts B/(W) (5.8) pts Less: impact on loss ratio Catastrophe losses and reinstatement premiums Prior year development (4.8%) (10.3%) 1.1% 0.1% Adjustments for ceded premium under reinsurance contracts and other 0.1% 0.0% Accident year loss ratio, as adjusted 61.6% Expense ratio Accident year combined ratio, as adjusted Calendar year combined ratio 60.8% 34.4% 33.3% 96.0% 94.1% 99.6% 104.3% (4.7) pts (5.5) pts (1.0) pts (0.1) pts 0.8 pts 1.1 pts 1.9 pts $1.2B increase in CATS including $1.1B of COVID-19 CATS, $0.5B decrease in NII, APTI basis, and 1.0 pt decrease in favorable PYD ratio reflecting lower favorable PYD in FY'20 compared to FY'19; partially offset by 1.9 pt improvement in AYCR, as adjusted Life and Retirement APTI was nearly flat; results reflect the impact of COVID-19 mortality, base spread compression and lower FVO bond income, almost entirely offset by higher private equity returns and favorable impacts from lower interest rates and tighter credit spreads resulting in higher call and tender income Other Operations APTL was $2.4B, including $0.5B of reductions from consolidation and eliminations, compared to $1.6B, including $0.3B of reductions from consolidation and eliminations, in the prior year quarter. The increase in consolidation and eliminations reflects the impact of consolidated investment entities. Before consolidation and eliminations, the increase in the pre-tax loss was primarily due to the sale of Fortitude in 2Q20, lower NII associated with available for sale securities (excluding Fortitude), and increased interest expense related to debt issuances in 2Q20 AIG 1) Other Operations is primarily comprised of corporate, our institutional asset management business and consolidation and eliminations. 18#19GII, APTI basis¹, decrease of $1.9B reflects the June 2020 Fortitude sale, lower FVO bond income, and yield compression on available for sale securities Invested Assets & Gross Investment Income, APTI Basis¹ FY'20 Invested Assets Gross Investment Income, APTI basis¹ ($M) $B Fixed Maturities Alternatives All Other $697 Interest & dividends FY'19 $2,842 $107 $3,646 General Insurance $75.9 $5.3 $2.8 $595 FY'20 $2,390 $188 $3,173 Alternative investments FY'19 $8,125 $415 $518 $9,058 Life & $187.3 $3.9 $4.4 All other Retirement $591 FY'20 $8,239 $348 $9,178 $251 FY'19 $1,959 $386 $2,596 Other $10.1 ($1.2) $7.4 Operations¹ $76 Consolidation and eliminations and other adjustments FY'20 $907 $100 $1,083 FY'19 ($543) Total AIG $273.3 $8.0 $14.6 FY'20 ($571) $12,926 $11,536 $1,363 $1,011 $14,757 $1,262 $636 $12,863 Fixed Maturities² FY'20 and FY'19 Annualized Investment Yields 4.81% 4.49% 4.50% 4.08% 3.80% 3.18% Alternative Investments³ Total Alternative Investments 18.62% Consolidated AIG Hedge Funds & Private Equity 16.94% 16.29% 15.65% 11.82% 11.86% 14.04% 14.14% 15.47% 9.81% General Insurance Life & Retirement Consolidated AIG FY'19 FY'20 General Insurance Life & Retirement Consolidated AIG Hedge Funds FY'19 FY'20 Private Equity 1) FY'20 and FY'19 includes GII $521M ($499M on a net basis) and $2.0B ($1.9B on a net basis), respectively, related to investment income on Fortitude assets. Excluding Fortitude, FY'20 and FY'19 GII, APTI basis, is $12,342M and $12,806M, respectively, and NII, APTI basis, is $11,822M and $12,490M, respectively. AIG 2) Interest and dividends include amounts related to commercial mortgage loan prepayments and call and tender income; Life and Retirement annualized yields include yield on collateral related to hedging program. 3) Alternative investment income includes income on hedge funds, private equity funds and affordable housing partnerships. 19#20FY'19 and FY'20 noteworthy items FY'19 - Income/ (Loss) FY'20 - Income / (Loss) ($M, except per share amounts) Pre-tax After-tax1 EPS diluted² - Pre-tax After-tax1 EPS - diluted² CATS excluding General Insurance COVID-19 CATS ($1,273) ($1,006) ($1.13) ($1,358) ($1,073) ($1.23) General Insurance COVID-19 CATS Favorable/(unfavorable) PYD Charge related to annual actuarial assumption update in Life and Retirement (1,093) (863) (0.99) 294 232 0.26 74 58 0.07 (173) (137) (0.15) (107) (85) (0.10) Investment Performance: Better than expected alternative investment returns³,4 451 356 0.40 572 452 0.52 Better than expected fair value changes on Fixed Maturity Securities Other accounted under FVO³ 20 16 0.02 157 124 0.14 Total noteworthy items - APTI basis ($681) ($538) ($0.60) ($1,755) ($1,386) ($1.59) 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 4Q20 Financial Supplement. 3) The annualized expected rate of return for FY'19 and FY'20 is 8% and 6% for alternative investments and 6% and 4% for FVO fixed maturity securities, respectively. AIG 4) Alternative investment returns reflect General Insurance and Life and Retirement alternative investment income only and exclude other operations, which includes the impact of consolidation and eliminations. On an AIG consolidated basis, better than expected alternative investment returns were $395M, pre-tax, in FY'19 and $460M, pre- tax, in FY'20. 20#21AIG 200, a global, multi-year initiative to achieve transformational change and $1B of GOE savings; FY'20 exit run-rate savings of $400M, exceeding original GOE target of $300M by -33% The Standard Commercial Underwriting Platform will modernize global underwriting capabilities by simplifying processes and tools to create a contemporary data architecture ($M) 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 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 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 Estimate 2020 Targets Actual 2021E 2022E Total Comments Capitalized assets, not in APTI initially $100 -$80 $200 $120 $400 Restructuring and Other charges, $250 -$150 $300 $450 $900 offset by Gain on Sale, in Net Income Total investment Amortized depreciated in GOE / APTI when IT or capital asset placed into service1 Modest impact to APTI; primarily related to professional, IT and other restructuring fees, offset by gain on sale on divested entities $350 ~$230 $500 $570 $1,300 Run-rate net GOE savings, cumulative¹ $300 ~$400 $650 Annual net benefit to APTI $150 ~$175 AIG Estimated exit run-rate savings will emerge over a period of time, beginning in 2020, as a result of actions taken in the AIG 200 program Estimated GOE benefit in 2020 as a result of actions taken in the AIG 200 program 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. $1,000 21#22General Insurance: 1.9 pts better AYCR, as adjusted; 3.4 pt improvement in Global Commercial Lines due to improved business mix as a result of underwriting actions Net Premiums Written ($M) ($M) FY'19 FY'20 Net premiums written $25,092 $22,959 Global Commercial Lines Global Personal Insurance Net premiums earned $26,438 $23,662 +3.0% Loss and loss adjustment expense $15,057 $15,509 17,246 16,803 $10,035 -25.8% Acquisition expenses 5,774 4,821 $7,450 $6,833 $6,874 General operating expenses 3,329 3,062 $6,769 Underwriting income (loss) $89 ($1,024) Net investment income $3,444 $2,925 $8,224 $8,635 Change primarily driven by the formation of Syndicate 2019 and lower Travel premiums $6,301 $3,266 due to COVID-19 Adjusted pre-tax income $3,533 $1,901 $1,149 FY'19 FY'20 Note: Impact of CATS1, pre-tax ($1,257) ($2,428) ■North America FY'19 International FY'20 Calendar Year Combined Ratios² Accident Year Combined Ratios (excl. CATs) walk AYCR, as adjusted, improved 1.9 pts 94.1% 1.1% 33.3% +4.7 pts 104.3% 99.6% 4.8% with 5.5 pt 10.3% 96.0% 12.6% increase in 12.9% 0.8% CATS 21.8% 34.4% 20.4% 61.6% 60.8% -1.1% -0.1% FY'19 FY'20 ■AYLR, As Adj. ■Acq. Ratio GOE Ratio ■PYD Ratio ■CAT Ratio 61.6% 60.8% FY19 AYLR U/W Actions/Mix Expense Ratio FY20 ■AYLR, As Adj. Expense Ratio 1) FY'20 includes non-COVID-19 CATS of $1,335M and COVID-19 CATS of $1,093M, pre-tax. AIG 2) FY'19 CYCR includes adjustments for ceded premium under reinsurance contracts and other of (0.1) pts. 22 22#23General Insurance: Strong 2.8 pt improvement in North America Commercial AYCR, as adjusted; Personal Insurance impacted by Travel and Syndicate 2019 ($M) Net premiums written FY'19 $11,490 FY'20 $9,784 Commercial Lines 8,224 Personal Insurance 3,266 8,635 1,149 Net premiums earned $12,136 $10,302 Commercial Lines 8,877 8,516 Personal Insurance 3,259 ($365) 1,786 ($1,301) (364) (1) Note: Impact of CATS, pre-tax ($827) (861) (440) ($1,737) Underwriting loss Commercial Lines Personal Insurance Key Takeaways: ■ NA Commercial Lines NPW grew 5% over the prior year reflecting strong rate momentum, improved retention and higher writings in AIG Re. NA Personal Insurance NPW decreased as a result of the impact from COVID-19 on the Travel business, and cessions pursuant to a series of quota share reinsurance agreements placed in the 2Q20 related to Syndicate 2019 ■ NA Commercial Lines AYCR, as adjusted, improved 2.8 pts due to enhanced risk selection along with higher rate change, as well as a lower expense ratio due to changes in the business mix and expense discipline ■ NA Personal Insurance AYCR, as adjusted, increased 8.8 pts due to the impact on the loss ratio of COVID-19 on Travel and the change in business mix driven by a series of quota share reinsurance agreements as described above. The GOE ratio was also impacted by the reduction in net premiums earned ■ CATS of $1.7B; $1.0B related to non-COVID-19 CATS and $0.7B related to COVID-19 CATS ■ Favorable PYD of $157M with $239M favorable PYD in Commercial Lines and $82M in unfavorable PYD in Personal Insurance; PYD reflects $211M of favorable amortization from the ADC North America Combined Ratios¹ Total Commercial Lines Personal Insurance 112.6% 103.1% 104.1% 110.0% 124.7% 100.0% 6.8% 16.7% 6.3% 16.7% 16.9% 8.1% (1.0%) (1.2%) (0.3%) 4.0% (2.2%) (2.8%) 97.5% 97.0% 98.3% AYCR, as 95.5% 95.0% Change 103.8% AYCR, as primarily 10.2% adjusted, 11.3% 10.5% 15.7% adjusted, 10.3% 9.2% driven by the 19.8% improved 16.7% 14.6% improved 14.3% formation of 28.1% 2.8 pts 33.8% 0.5 pts Syndicate AYLR, as 67.5% 69.0% 73.2% adjusted, 70.9% 52.0% 2019 and lower Travel premiums due 60.0% improved to COVID-19 2.3 pts FY'19 FY'20 CYCR CAT Ratio FY'19 FY'20 FY'19 FY'20 PYD Ratio AYCR, As adjusted GOE Ratio Acquisition Ratio AYLR, As adjusted AIG 1) FY'19 CYCR includes adjustments for ceded premium under reinsurance contracts and other of (0.2) pts, (0.2) pts, and (0.3) pts in Total North America, North America Commercial Lines, and North America Personal Insurance, respectively. 23#24General Insurance: 3.0 pt improvement in International AYCR, as adjusted, due to improved risk selection, rate increases, and ongoing expense discipline ($M) Net premiums written FY'19 $13,602 FY'20 $13,175 Commercial Lines 6,833 Personal Insurance 6,769 Net premiums earned $14,302 6,874 6,301 $13,360 Commercial Lines 7,087 6,927 Personal Insurance 7,215 6,433 Underwriting income $454 $277 Key Takeaways: ■ International Commercial Lines NPW grew 1% and International Personal Insurance NPW decreased 7% largely from the adverse impact of COVID-19 on Travel, Accident & Health (A&H) and Personal Lines (Auto and Personal Property) ■ International Commercial Lines AYCR, as adjusted, improved 4.4 pts due to enhanced risk selection along with rate increases and ongoing expense discipline ■ International Personal Insurance AYCR, as adjusted, improved 1.3 pts reflecting lower claims frequency and changes in business mix ■ CATS of $691M; $301M related to non-COVID-19 CATS and $390M related to COVID-19 CATS Commercial Lines 177 (27) Personal Insurance 277 304 ■ Unfavorable PYD of $81M with $112M unfavorable PYD in Commercial Lines and $31M in favorable PYD in Personal Insurance Note: Impact of CATS, pre-tax ($430) ($691) International Combined Ratios¹ Total Commercial Lines Personal Insurance 97.9% 96.9% 97.6% 100.4% 96.2% 95.3% 3.2% 5.3% 3.5% 8.5% 2.9% 1.8% (1.1%) 0.7% (0.4%) 1.8% (1.9%) (0.4%) 94.9% 94.5% 91.9% 90.1% 95.2% 93.9% AYCR, as AYCR, as AYCR, as 14.7% adjusted, 14.2% 14.3% adjusted, 15.1% 13.8% adjusted, 14.8% improved improved improved 23.6% 20.3% 3.0 pts 23.2% 4.4 pts 19.8% 26.8% 1.3 pts 26.8% AYLR, as AYLR, as 56.6% adjusted, 54.5% improved 2.1 pts FY'19 FY'20 59.9% adjusted, 56.5% improved 3.4 pts FY'19 FY'20 AYLR, as 53.3% adjusted, 52.3% improved 1.0 pts FY'19 FY'20 CYCR CAT Ratio PYD Ratio AYCR, As adjusted GOE Ratio Acquisition Ratio AIG 1) FY'19 CYCR includes adjustments for ceded premium under reinsurance contracts and other of (0.1) pts in Total International. AYLR, As adjusted 24#25Life and Retirement: Stable APTI in 2020 despite COVID-19 mortality and base spread compression impacts that were largely offset by strong equity markets and higher call and tender income Adjusted Pre-Tax Income (APTI) ($M) -1% or $3,553 $3,531 -$22M $308 $438 $331 ■ $142 $937 $1,013 $1,977 FY 2019 Individual Retirement ■Life Insurance $1,938 FY 2020 Group Retirement ■Institutional Markets Key Takeaways APTI reflects the impact of COVID-19 mortality, base spread compression and lower fair value option bond income, offset by higher private equity returns, and favorable impacts from lower interest rates and tighter credit spreads resulting in higher call and tender income 2020 premiums and deposits were negatively impacted by industry sales channel disruptions resulting from COVID-19 and headwinds from low interest rates Premiums and Deposits ($M) Noteworthy Items ($M, unless noted) 2019 2020 Variance -11% $30,349 $27,125 $2,822 Return on adjusted segment common equity (Annualized) 14.5% 13.6% -0.9% $4,282 $4,846 -10% Noteworthy Items ($M) 2019 2020 Variance $8,346 $4,413 $7,496 Annual actuarial assumption updates $ (144) $ (107) $ 37 -30% $14,899 $10,370 Return on alternative investments Other yield enhancements Includes: $ 416 $ 591 $ 175 $ 583 $ 682 $ 99 FY 2019 FY 2020 Fair value changes on Fixed Maturity Securities Other accounted under FVO ■Individual Retirement Group Retirement ■Life Insurance ■Institutional Markets All other yield enhancements EA $ 192 $ 58 $ (134) $ 391 $ 624 $ 233 Note (March 15, 2021): Return on adjusted segment common equity has been updated to reflect revisions to segment balance sheets and debt and interest AIG allocated to segments. 25#26Life and Retirement: Individual and Group Retirement APTI reflect strong equity markets, offset largely by base spread compression and lower income from FVO bonds Individual Retirement* Key Takeaways FY20 vs FY19 APTI results reflect Favorable impacts from: Lower GOE Unfavorable impacts from: Premiums and Deposits ($M) Net Flows ($M) Assets Under Administration ($B) APTI ($M) " Equity markets resulting in higher fees and favorable alternatives, mainly from private equity returns " $10,370 (-30% vs. FY19) ($4,728) $ 163.4 $1,938 (+5% vs. FY19) (-2% vs. FY19) Base Net Investment Spreads Total Net Investment Spreads 3.58% 3.05% 3.04% 2.63% 2.16% 1.86% 1.53% 2.00% Fixed Annuities Variable and Index Annuities Fixed Annuities Variable and Index Annuities ■FY19 FY20 ■FY19 FY20 Group Retirement $1,013 (+10% vs. FY19) (+8% vs. FY19) Assets Under Premiums and Deposits ($M) Net Flows ($M) Administration ($B) APTI ($M) $7,496 (-10% vs. FY19) ($1,940) $ 130.1 Base Net Investment Spreads 1.81% 1.61% Total Net Investment Spreads 2.16% 2.09% ■FY19 FY20 Lower FVO assets, offset in part by favorable impact from lower interest rates and tighter credit spreads Unfavorable impact from annual actuarial assumption update Base spread compression Total investment spreads Other Key Metrics Favorable impacts from: Assets under administration growth Unfavorable impacts from: Net flows Key Takeaways FY20 vs FY19 APTI results reflect Favorable impacts from: " Equity markets resulting in higher fees, lower DAC amortization and favorable alternatives, mainly from private equity returns Favorable impact from annual actuarial assumption update Unfavorable impacts from: Lower FVO assets, offset in part by favorable impact from lower interest rates and tighter credit spreads Base spread compression Total investment spreads Other Key Metrics Favorable impacts from: Net flows Assets under administration growth ■FY19 FY20 AIG * Includes Retail Mutual Funds 26#27Life and Retirement: Life Insurance 2020 APTI declined driven by higher mortality due to COVID-19, offset in part by strong equity markets; Institutional Markets APTI reflects strong private equity returns and growth in reserves ($M) New Business Sales Domestic US International Premiums and Deposits APTI ($M) APTI Life Insurance Institutional Markets $455 (-9% vs. FY19) 59% 41% $4,413 (+3% vs. FY19) $142 (-57% vs. FY19) Key Takeaways FY20 APTI vs FY19 results reflect Favorable impacts from: Equity markets resulting in favorable alternatives, mainly from private equity returns Lower GOE Unfavorable impacts from: " " Lower FVO assets, offset in part by favorable impact from lower interest rates and tighter credit spreads Unfavorable impact from annual actuarial assumption update Mortality, driven by COVID-19 Lower reinvestment rates Other Key Metrics Unfavorable impacts from: New business sales impact on APTI $438 (+42% vs. FY19) Premiums and Deposits ($M) GAAP Reserves ($B) $27.3 $4,846 $23.6 $8.1 $6.7 $0.1 $2,124 $2.2 $0.6 $2,822 $2.1 $5.1 $2 $71 $717 $5.0 $64 $53 $1,665 $2,320 $8.2 $5.9 $323 FY19 Structured Settlements AIG $329 FY20 PRT ■COLI/BOLI $3.2 FY19 PPVUL/PPVA $3.6 FY20 ■SVW GIC Key Takeaways FY20 vs F19 APTI results reflect Favorable impacts from: " Equity markets resulting in favorable alternatives, mainly from private equity returns Higher base investment income, growth in reserves Unfavorable impacts from: Lower FVO assets, offset in part by favorable impact from lower interest rates and tighter credit spreads Other Key Metrics Favorable impacts from: " Growth in reserves Definitions: GIC = Guaranteed Investment Contracts | SVW = Stable Value Wrap | COLI/BOLI = Corporate and Bank-owned life insurance | PRT = Pension Risk Transfer | PPVUL/PPVA = Private placement variable life and annuities 27#28Life and Retirement: Balance sheet, capital generation and liquidity remained strong in 2020 ☐ " ☐ Strong Balance Sheet Fundamentals Post-Fortitude sale, relatively limited net exposure to legacy blocks of business; no Long-Term Care exposure and limited pre-financial crisis Variable Annuities guarantees Disciplined pricing approach across a diverse set of products ~91% investment grade corporate debt investment portfolio, as of December 31, 2020, positioned well to navigate stress scenarios Estimated YE20 statutory capital levels improved from YE19 and remain above the target capital range, with modest impacts from investment downgrades and credit losses Dividends and Tax Sharing Payments ($B)1 $4.8 $1.5 $3.3 $2.7 $2.3 $0.1 $2.5 $1.5 $0.5 $3.3 $0.8 $1.2 2018 2019 ■Dividends 2017 ■Tax Sharing Payments $1.7 2020 Loan repayments On October 26, 2020, AIG announced its intention to separate its Life and Retirement business from AIG. No decisions have yet been made regarding the structure of the initial disposition of up to a 19.9% interest in the Life and Retirement business. In addition, 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. 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 Fleet RBC2 480% 389% 402% Estimated RBC range 425% -435% 2017 2018 2019 2020E AIG 1) Includes US Life Companies. 2020 dividends reflect the impact of lower dividends from certain subsidiaries due to $615M of proceeds from the sale of the majority interests in Fortitude Group Holdings LLC in June 2020 (Majority Interest Fortitude Sale) being retained at AIG rather than contributed to the Life and Retirement business, and a corresponding amount being retained by the Life and Retirement business rather than dividend up to AIG. Proceeds of $0.1B contributed to certain Life and Retirement subsidiaries as a result of the Majority Interest Fortitude Sale are excluded from the FY2020 results above. 2) FY'20 RBC ratio is a preliminary range and subject to change with completion of statutory closing process. The RBC drop in 2018 due to tax reform and NYDFS 28 additional cash flow testing requirements.#29Other Operations: APTL increased principally due to the sale of Fortitude in 2Q20, lower NII associated with available for sale securities (excluding Fortitude), the impact of consolidated investment entities on consolidation and eliminations, as well as higher interest expense from May 2020 bond issuance ($M) Corporate and Other Asset Management FY'19 ($1,378) FY'20 ($2,041) 66 78 Adjusted pre-tax loss before consolidation and eliminations ($1,312) ($1,963) Consolidation and eliminations: Consolidation and eliminations - Consolidated investment entities Consolidation and eliminations - Other (327) (457) 23 (9) Total Consolidation and eliminations (304) (466) Adjusted pre-tax loss ($1,616) ($2,429) AIG Key Takeaways: ■ Other Operations APTL was $2.4B, including $0.5B of reductions from consolidation and eliminations, compared to $1.6B, including $0.3B of reductions from consolidation and eliminations, in the prior year quarter. The increase in consolidation and eliminations reflects the impact of consolidated investment entities ■ Before consolidation and eliminations, the increase in APTL was primarily due to the sale of Fortitude in 2Q20, lower NII associated with available for sale securities (excluding Fortitude), and increased interest expense related to debt issuances in 2Q20 29 29#30Glossary of Non-GAAP Financial Measures and Non-GAAP Reconciliations AIG 30#31Glossary 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 Fourth Quarter 2020 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 post deconsolidation of Fortitude Re; • . following deconsolidation of Fortitude Re, net realized capital gains and losses on Fortitude Re funds withheld assets held by AIG in support of Fortitude Re's reinsurance obligations to AIG (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; non-recurring costs associated with the implementation of non-ordinary course losses from the impairment of goodwill; and 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 31#32Glossary 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's 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's 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's 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's 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's 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's 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's 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 32 32#33AIG Glossary 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 combined ratios, as adjusted: both the accident year loss and 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. 33 33#34Non-GAAP Reconciliations Adjusted Pre-tax and After-tax Income - Consolidated Twelve Months Ended (in millions) Pre-tax income (loss) 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 Quarterly December 31, 4Q19 4Q20 2019 2020 $ 1,036 $ (558) $ 5,287 $ (7,293) (11) (17) (194) (41) (95) (217) (56) (12) (152) (216) (158) (200) Loss (gain) on extinguishment of debt 19 (3) 32 12 Net investment income on Fortitude Re funds withheld assets (a) (479) (1,053) Net realized capital (gains) losses on Fortitude Re funds withheld assets (a) (335) (463) Net realized capital (gains) losses on Fortitude Re funds withheld businesses embedded derivative (a) Net realized capital (gains) losses (b) (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 charge Integration and transaction costs associated with acquiring or divesting Restructuring and other costs Non-recurring costs related to regulatory or accounting changes Adjusted pre-tax income 1,152 2,645 313 1,472 (456) 97 71 (127) 75 8,525 (8) (16) (2) (21) (56) (150) (267) (221) 35 475 955 516 8 5 24 12 44 111 7 19 218 12 435 65 $ 1.211 S 1.116 $ 5.470 S 3.003 AIG (a) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020. (b) 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. 34 34#35Non-GAAP Reconciliations Adjusted Pre-tax and After-tax Income - Consolidated (in millions) After-tax net income (loss), including noncontrolling interests Noncontrolling interests (income) loss Net income (loss) attributable to AIG Dividends on preferred stock Net income (loss) attributable to AIG common shareholders Adjustments to arrive at Adjusted after-tax income (loss) (amounts net of tax, at U.S. statutory tax rate for each respective period, except where noted): Changes in uncertain tax positions and other tax adjustments (a) Deferred income tax valuation allowance (releases) 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(c) Twelve Months Ended Quarterly December 31, 4Q19 4Q20 2019 2020 EA $ 869 $ (16) $ 4,169 $ 60 (37) (821) (5,829) (115) $ EA 929 $ 7 (53) $ 7 3,348 $ (5,944) $ 922 $ (60) $ 22 3,326 $ 29 (5,973) 7 (336) 30 (132) (3) (157) (43) (65) (9) (13) (154) (32) (75) (171) (44) (9) (120) (171) (125) (158) 15 (2) 25 10 (378) (832) Net realized capital (gains) losses on Fortitude Re funds withheld assets(c) (264) (365) Net realized capital (gains) losses on Fortitude Re funds withheld embedded derivative (c) 910 2,090 Net realized capital (gains) losses (d)(e) 258 1,141 (357) 75 (Income) loss from discontinued operations and divested businesses (e) Non-operating litigation reserves and settlements 14 (21) 18 6,911 (7) (13) (2) (17) Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements (45) (119) (211) (175) Net loss reserve discount charge 28 375 754 407 Integration and transaction costs associated with acquiring or divesting businesses 6 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 (f) Adjusted after-tax income attributable to AIG common shareholders Weighted average diluted shares outstanding (g) 35 88 6 15 +85 4 19 9 172 344 10 51 (109) (1) 660 62 $ 923 $ 827 $ 4.078 $ 2.201 896.4 868.4 889.5 869.3 Income (loss) per common share attributable to AIG common shareholders (diluted) (g) $ 1.03 $ 1.03 (0.07) $ 0.94 3.74 $ (6.88) 4.58 2.52 AIG Adjusted after-tax income per common share attributable to AIG common shareholders (diluted) (a) Includes the tax audit resolution related to the IRS audit settlement for tax years 1991-2006 and the write-down of net operating loss deferred tax assets in certain foreign jurisdictions, which is offset by valuation allowance release. (b) Twelve months ended December 31, 2020 includes valuation allowance established against a portion of foreign tax credit carryforwards of AIG's U.S. federal consolidated income tax group, as well as net valuation allowance release in certain foreign jurisdictions for the three- and twelve-months ended December 31, 2020. (c) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020. (d) 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. (e) Includes the impact of non-U.S. tax rates which differ from the applicable U.S. statutory tax rate and tax-only adjustments. (f) 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 December 31, 2020. (g) Because we reported a net loss attributable to AIG common shareholders for the three and twelve months ended December 31, 2020, all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares 35 and diluted per share amounts.#36Non-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's 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) 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) As of December 31, 2019 $ 65,675 485 $ 65,190 4,982 2020 September 30, 2020 66,362 $ 64,108 485 485 65,877 63,623 13,511 10,978 4,657 4,392 8,977 7,907 8,123 $ 51.231 S 49.116 S 48.914 870.0 861.6 861.4 $ 74.93 $ 76.46 $ 73.86 58.89 57.01 56.78 $ 65,190 $ 65,877 $ 63,623 4,038 4,074 4,026 317 126 122 536 497 507 333 319 322 5,224 5,016 4,977 4,982 13,511 10,978 Add: Cumulative unrealized gains and losses related to Fortitude Re's Funds Withheld Assets 4,657 4,392 Less: Deferred tax assets (DTA)* 8,977 7,907 8,123 Total adjusted tangible common shareholders' equity (d) $ Total common shares outstanding (c) 46.007 S 870.0 44.100 861.6 $ 43.937 861.4 Adjusted tangible book value per common share (d÷c) 52.88 S 51.18 $ 51.01 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 36#37Non-GAAP Reconciliations Return on Common Equity (in millions) Return On Common Equity Computations Actual or Annualized net income (loss) attributable to AIG common shareholders (a) Actual or Annualized adjusted after-tax income attributable to AIG common shareholders (b) Quarterly December 31, 4Q19 4Q20 2019 2020 EA 3.688 $ (240) $ 3.326 $ (5.973) Average AIG Common Shareholders' equity (c) SS $ 3.692 $ 3.308 $ 4.078 $ 2.201 $ 65,154 $ 64,750 $ 62,205 $ 63,225 Less: Average AOCI 5,299 12,245 3,261 7,529 Add: Average cumulative unrealized gains and losses related to Fortitude Re's Funds Withheld Assets 4,525 2,653 Less: Average DTA* 9,185 8,015 9,605 8,437 Average adjusted common shareholders' equity (d) $ 50.670 S 49.015 $ 49.339 $ 49.912 ROCE (a+c) Adjusted return on common equity (b+d) 5.7% 7.3% (0.4%) 6.7% 5.3% (9.4%) 8.3% 4.4% General Insurance (in millions) Adjusted pre-tax income Quarterly Life and Retirement (in millions) Twelve Months Ended Quarterly December 31, 4Q19 4Q20 4Q19 4Q20 2019 2020 $ 778 $ 809 Adjusted pre-tax income $ 858 $ 1,027 Interest expense on attributed financial debt 150 145 Interest expense on attributed financial debt 68 70 3,553 $ 3,531 266 285 Adjusted pre-tax income including attributed interest expense 628 664 Adjusted pre-tax income including attributed interest expense 790 957 3,287 3,246 Income tax expense 165 182 Income tax expense 159 185 653 640 Adjusted after-tax income 463 $ 482 Adjusted after-tax income S 631 IS 772 $ 2,634 S 2.606 Dividends declared on preferred stock 3 3 Dividends declared on preferred stock 2 6 8 Adjusted after-tax income attributable to common shareholders (a) Ending adjusted segment common equity Average adjusted segment common equity (b) Return on adjusted segment common equity (a+b) Adjusted after-tax income attributable to common shareholders (a) S 629 IS 770 2,628 IS 2.598 460 $ 25,059 25,128 479 25,044 Ending adjusted segment common equity $ 17,799 $ 19,172 $ 17,799 $ 19,172 25,065 7.3 % 7.6 % Average adjusted segment common equity (b) Return on adjusted segment common equity (a+b) 17,645 14.3 % 19,297 16.0 18,076 14.5 % 19,128 13.6 % AIG Note (March 15, 2021): Adjusted after-tax income (loss) attributable to common shareholders, ending adjusted segment common equity, average adjusted segment common equity and return on adjusted segment common equity have been updated to reflect revisions to segment balance sheets and debt and interest allocated to segments. * 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. 37#38Non-GAAP Reconciliations Accident Year Loss Ratio, as adjusted, and Accident Year Combined Ratio, as adjusted General Insurance Twelve Months Twelve Months Ended December 31, Quarterly Ended December 31, General Insurance - North America Quarterly 4Q19 4Q20 2019 2020 4Q19 4Q20 2019 2020 Loss ratio 65.6 70.2 65.2 71.0 Loss ratio 74.0 88.9 73.1 84.6 Catastrophe losses and reinstatement premiums Catastrophe losses and reinstatement (6.5) (9.0) (4.8) (10.3) premiums (10.4) (18.0) (6.8) (16.7) Prior year development 2.2 (0.9) 1.1 0.1 Prior year development 2.6 (2.2) 1.0 1.2 Adjustments for ceded premium under Adjustments for ceded premium under reinsurance contracts and other 0.3 0.1 reinsurance contracts and other 0.7 0.2 (0.1) Accident year loss ratio, as adjusted 61.6 60.3 61.6 60.8 Accident year loss ratio, as adjusted 66.9 68.7 67.5 69.0 Acquisition ratio 21.4 19.8 21.8 20.4 Acquisition ratio 19.1 15.6 19.8 16.7 General operating expense ratio 12.8 12.8 12.6 12.9 General operating expense ratio 10.1 10.4 10.2 11.3 Expense ratio 34.2 32.6 34.4 33.3 Expense ratio 29.2 26.0 30.0 28.0 Combined ratio 99.8 102.8 99.6 104.3 Combined ratio 103.2 114.9 103.1 112.6 Accident year combined ratio, as adjusted 95.8 92.9 96.0 94.1 Accident year combined ratio, as adjusted 96.1 94.7 97.5 97.0 Twelve Months Twelve Months General Insurance - North America - Commercial Lines Quarterly Ended December 31, General Insurance - North America - Ended Personal Insurance Quarterly December 31, 4Q19 4Q20 2019 2020 4Q19 4Q20 2019 2020 Loss ratio 84.7 89.3 79.0 85.4 Loss ratio 45.7 86.0 57.0 80.9 Catastrophe losses and reinstatement Catastrophe losses and reinstatement premiums (8.7) (17.4) (6.3) (16.7) premiums (14.8) (22.6) (8.1) (16.9) Prior year development (3.2) (1.4) 0.3 2.2 Prior year development 17.8 (8.0) 2.8 (4.0) Adjustments for ceded premium under Adjustments for ceded premium under reinsurance contracts and other Accident year loss ratio, as adjusted 0.7 0.2 reinsurance contract 0.6 0.3 73.5 70.5 73.2 70.9 Accident year loss ratio, as adjusted 49.3 55.4 52.0 60.0 Acquisition ratio 13.5 14.0 14.6 14.3 Acquisition ratio 34.0 27.1 33.8 28.1 General operating expense ratio 10.6 9.1 10.5 10.3 General operating expense ratio 8.9 20.1 9.2 15.7 Expense ratio 24.1 23.1 25.1 24.6 Expense ratio 42.9 47.2 43.0 43.8 Combined ratio 108.8 112.4 104.1 110.0 Combined ratio 88.6 133.2 100.0 124.7 Accident year combined ratio, as adjusted 97.6 93.6 98.3 95.5 Accident year combined ratio, as adjusted 92.2 102.6 95.0 103.8 AIG 38#39Non-GAAP Reconciliations Accident Year Loss Ratio, as adjusted, and Accident Year Combined Ratio, as adjusted Twelve Months Twelve Months General Insurance - International Quarterly Ended December 31, General Insurance - International - Commercial Lines Quarterly Ended December 31, 4Q19 4Q20 2019 2020 4Q19 4Q20 2019 2020 Loss ratio 58.4 55.9 58.6 60.5 Loss ratio 62.2 58.8 63.0 66.8 Catastrophe losses and reinstatement premiums Catastrophe losses and reinstatement (3.2) (2.1) (3.2) (5.3) premiums (3.0) (4.0) (3.5) (8.5) Prior year development 1.9 0.2 1.1 (0.7) Prior year development 0.2 1.1 0.4 (1.8) Adjustment for ceded premium under Accident year loss ratio, as adjusted 59.4 55.9 59.9 56.5 reinsurance contract 0.1 Accident year loss ratio, as adjusted 57.1 54.0 56.6 54.5 Acquisition ratio 20.3 19.4 20.3 19.8 Acquisition ratio General operating expense ratio 14.4 13.9 14.3 13.8 23.3 23.0 23.6 23.2 Expense ratio 34.7 33.3 34.6 33.6 General operating expense ratio 15.2 14.7 14.7 14.2 Expense ratio 38.5 37.7 38.3 37.4 Combined ratio 96.9 92.1 97.6 100.4 Combined ratio 96.9 93.6 96.9 97.9 year Accident combined ratio, as adjusted 94.1 89.2 94.5 90.1 Accident year combined ratio, as adjusted 95.6 91.7 94.9 91.9 Twelve Months General Insurance - International - Ended General Insurance - Global Commercial Lines Twelve Months Personal Insurance Quarterly December 31, Quarterly Ended December 31, 4Q19 4Q20 2019 2020 4Q19 4Q20 2019 2020 Loss ratio 54.5 52.7 54.3 53.7 Loss ratio 74.7 76.0 71.9 77.1 Catastrophe losses and reinstatement Catastrophe losses and reinstatement premiums (3.3) (2.9) (1.8) premiums (6.2) (11.6) (5.0) (13.1) Prior year development 3.5 (0.9) 1.9 0.4 Prior year development (1.7) (0.3) 0.3 0.5 Accident year loss ratio, as adjusted 54.7 51.8 53.3 52.3 Adjustments for ceded premium under reinsurance contracts and other 0.4 0.1 Acquisition ratio 26.3 26.9 26.8 26.8 Accident year loss ratio, as adjusted 67.2 64.1 67.3 64.5 General operating expense ratio 16.0 15.4 15.1 14.8 Expense ratio Acquisition ratio 16.6 16.4 17.1 16.8 42.3 42.3 41.9 41.6 General operating expense ratio 12.3 11.2 12.2 11.9 Expense ratio 28.9 27.6 29.3 28.7 Combined ratio 96.8 95.0 96.2 95.3 Accident year combined ratio, as adjusted 97.0 94.1 95.2 93.9 Combined ratio 103.6 103.6 101.2 105.8 Accident year combined ratio, as adjusted 96.1 91.7 96.6 93.2 AIG 39#40Non-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 Reconciliation of Net Investment Income Global - Commercial Lines 4Q20 7 % 1 8 % Quarterly International - Commercial Lines 4Q20 5 % 2 7 % Twelve Months Ended December 31, (in millions) Net investment income per Consolidated Statements of Operations 4Q19 4Q20 2019 2020 $ 3,587 $ 3,957 $ 14,619 $ 13,631 Changes in fair value of securities used to hedge guaranteed living benefits Changes in the fair value of equity securities (16) (14) (229) (56) (152) (216) (158) (200) Net investment income on Fortitude Re funds withheld assets (479) (1,053) Net realized capital gains (losses) related to economic hedges and other Total Net investment income - APTI Basis 43 (22) 158 (1) $ 3.462 $ 3,226 $ 14.390 $ 12,321 Add: Investment expenses Add: Consolidation and eliminations 144 129 525 541 166 307 385 572 AIG investment income, APTI basis $ 3.772 $ 3.662 $ 15,300 S 13.434 Consolidation and eliminations (166) (307) (385) (572) Net realized capital (gains) losses related to economic hedges and other Gross investment income, APTI basis (43) 22 (158) 1 $ 3.563 $ 3.377 $ 14.757 S 12.863 Less: Impact of Fortitude Re prior to deconsolidation (510) (1,951) (521) Gross investment income, APTI basis, excluding the impact of Fortitude Re for all periods, including periods prior to deconsolidation $ 3,053 $ 3,377 $ 12,806 S 12,342 Total Net investment income -APTI Basis $ 3,462 $ 3,226 $ Less: Impact of Fortitude Re prior to deconsolidation (498) 14,390 (1,900) $ 12,321 (499) Total Net investment income - APTI Basis, excluding the impact of Fortitude Re for all periods, including periods prior to deconsolidation $ 2,964 $ 3.226 $ 12.490 11,822 AIG 40#41Non-GAAP Reconciliations Premiums (in millions) AIG Quarterly Twelve Months Ended December 31, Individual Retirement: Premiums 4Q19 4Q20 2019 2020 $ 39 $ 37 $ Deposits 3,121 2,720 104 $ 14,804 151 10,228 Other (4) Premiums and deposits $ 3,156 $ 1 2,758 $ (9) 14,899 $ 10,370 Individual Retirement (Fixed Annuities): Premiums $ EA 39 $ 38 $ 107 $ 154 Deposits 725 522 5,212 2,414 Other (10) (1) (39) (33) Premiums and deposits $ 754 S 559 $ 5,280 $ 2,535 Individual Retirement (Variable Annuities): Premiums $ $ (1) $ (3) $ (3) Deposits 839 931 2,852 2,982 Other 6 2 30 24 Premiums and deposits $ 845 $ 932 $ 2,879 $ 3,003 Individual Retirement (Index Annuities): Premiums $ $ $ $ Deposits 1,362 1,128 5,466 4,096 Other Premiums and deposits $ 1,362 $ 1,128 $ 5,466 $ 4,096 Individual Retirement (Retail Mutual Funds): Premiums $ GA $ $ $ SA Deposits 195 139 1,274 736 Other Premiums and deposits $ 195 $ 139 $ 1,274 $ 736 Group Retirement: Premiums $ EA Deposits 2 $ 2,310 5 $ 16 $ 19 2,194 8,330 7,477 Other Premiums and deposits $ 2,312 $ 2,199 $ 8,346 $ 7,496 Life Insurance: Premiums $ 450 $ 491 $ 1,805 $ 1,915 Deposits 438 430 1,667 1,648 Other 218 235 810 850 Premiums and deposits $ 1,106 $ 1,156 $ 4,282 $ 4,413 Institutional Markets: Premiums $ EA 503 $ 417 $ 1,864 $ 2,539 Deposits 42 Other 6 Premiums and deposits $ 551 $ 864 6 1,287 $ 931 2,281 27 26 2,822 $ 4,846 Total Life and Retirement: Premiums $ 994 $ Deposits 5,911 Other 220 Premiums and deposits $ 7,125 $ 950 $ 6,208 242 7,400 $ 3,789 $ 25,732 828 30,349 $ 4,624 21,634 867 27,125 41