#1AIG First Quarter 2020 Financial Results Presentation May 4, 2020#2Cautionary Statement Regarding Forward-Looking 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 and macroeconomic events, such as COVID-19, 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 slowdown, general market declines 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, pandemics and the effects of climate change; AIG's ability to effectively execute on AIG 200 operational programs designed to achieve underwriting excellence, modernization of AIG's operating infrastructure, enhanced user and customer experiences and unification of AIG; AIG's ability to consummate the sale of its controlling interest in Fortitude Holdings and AIG's ability to successfully manage Legacy Portfolios; changes in judgments concerning potential cost saving opportunities; actions by credit rating agencies; changes in judgments concerning insurance underwriting and insurance liabilities; 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; 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; concentrations in AIG's investment portfolios; changes to the valuation of AIG's investments; AIG's ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired businesses; changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill; the effectiveness of our risk management policies and procedures, including with respect to our business continuity and disaster recovery plans; and such other factors discussed in Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) and Part II, Item 1A. Risk Factors in AIG's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 (which will be filed with the Securities and Exchange Commission), and Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A in AIG's Annual Report on Form 10-K for the year ended December 31, 2019. COVID-19 is adversely affecting, and is expected to continue to adversely affect, our business, financial condition and results of operations, its ultimate impact of which will depend on future developments that are uncertain and cannot be predicted, including the scope and duration of the crisis and actions taken by governmental and regulatory authorities in response thereto. Even after the crisis subsides, it is possible that the U.S. and other major economies will experience a prolonged recession, in which event our businesses, results of operations and financial condition could be materially and adversely affected. Statements about the effects of COVID-19 on our business, financial condition and results of operations may constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond our control, including the scope and duration of the COVID-19 and actions taken by governmental and regulatory authorities in response to mitigate its impact. 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 non-GAAP financial measures. The reconciliation of such measures to the most comparable GAAP measures in accordance with Regulation G is included in the earnings release and First Quarter 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#3Key Messages 1Q20 Financial Results Net income of $1.7B ($1.98 per diluted share) benefited from $3.5 billion of pre-tax net realized capital gains largely related to mark-to-market gains from variable annuity and interest rate hedges and the impact of our non-economic non-performance risk adjustment, per GAAP, on the fair value of our liabilities 1Q20 adjusted after-tax income* (AATI) of $99M; adjusted pre-tax income* (APTI) of $172M was driven by: - - Lower net investment income reflecting an other investment loss, principally from fair value option (FVO) fixed maturities, and lower alternative investment income due to hedge funds $272M of pre-tax catastrophe losses (CATS) in General Insurance for estimated COVID-19 losses related to Travel, Contingency, Commercial Property, Trade Credit, Workers' Compensation and Validus Re Adjusted tangible book value per common share of $54.58, a $5.34 per share increase from the prior year General Insurance Life & Retirement AIG $419M of CATS included $272M of estimated COVID-19 losses; the remainder of the CATS were primarily weather- related AYCR, as adjusted*, was 95.5%, comprised of a 60.8% AYLR, as adjusted*, and an expense ratio of 34.7%, reflecting continued expense discipline AYLR improved 1.0 pt from the prior year reflecting underwriting and reinsurance actions taken to improve business mix, rate adequacy and loss performance Strong rate momentum from 2019 continuing into the first quarter 1Q20 adjusted pre-tax income of $574M and adjusted return on attributed common equity of 8.4% was primarily due to declines in equity markets and widening spreads in credit markets Variable Annuity product risk management features and hedging program performed as expected * 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#4Key Messages (continued) Investments ☐ $2.7B in NII (APTI basis), down approximately $1B from 1Q19 as a result of COVID-19 related equity and credit markets impacts in the first quarter of 2020 compared to a strong recovery in the prior year quarter for hedge funds, private equity and FVO securities 1Q20 increase in current expected credit losses (CECL) allowance of $236M offset by $214M in gains on sale; at March 31, 2020 the balance sheet includes an allowance for credit losses on available-for-sale securities of $211M, mortgage and other loan receivables of $787M, and commercial mortgage loan commitments of $58M The Investments team proactively manages the portfolio including assessing vulnerable sectors Investment portfolio disclosures have been significantly expanded in the financial supplement Capital and Liquidity Capital and liquidity position remains strong at the holding company and principal insurance companies $7.5B holding company liquidity at March 31, 2020, including a $1.3B draw-down under a $4.5B revolving credit facility Total debt and preferred stock to total capital of 28.8% at March 31, 2020 Other Items ☐ AIG 200 workstreams continue to make progress with the goal of achieving a $1B reduction in annual run-rate expenses by year-end 2022 Expected closing of sale of majority interest in Fortitude Re to be mid-year, subject to receipt of regulatory approvals and other closing requirements AIG's Response to COVID-19 ☐ As the crisis has unfolded, AIG has successfully implemented its existing business continuity plans to ensure the safety of the global workforce and assist with social distancing with no material operational disruption Over 90% of workforce, including contractors and consultants, quickly transitioned to work from home, with AIG providing equipment to facilitate potential for longer-term shelter in place AIG issued a $500 grant to each employee globally, which equates to $30M in the aggregate, to help with unanticipated costs AIG continues to find ways to support its global communities, including donating thousands of masks to hospitals and distributing food to non-profit organizations. In addition, several Employee Resource Groups are assisting employees and making donations towards local relief efforts AIG 4#51Q20 APTI of $172M declined from 1Q19 due to NII and COVID-19 ($ in millions, except per common share amounts) 1Q19 1Q20 Variances Adjusted Pre-tax Income (Loss): General Insurance $1,268 Life and Retirement Other Operations¹ Total Core Legacy Portfolio Total adjusted pre-tax income 924 (457) (535) $501 ($767) 574 (350) (78) 1,735 540 (1,195) 112 (368) $1,847 $172 (480) ($1,675) AATI* attributable to AIG common shareholders $1,388 $99 ($1,289) AATI* per diluted share attributable to AIG common shareholders Net income attributable to AIG common shareholders Consolidated adjusted ROCE General Insurance Underwriting Ratios: Loss ratio Less: impact on loss ratio $1.58 $0.11 ($1.47) $654 $1,742 $1,088 11.6% 0.8% (10.8) pts 63.1% 66.8% B/(W) (3.7) pts Catastrophe losses and reinstatement premiums (2.7%) (6.9%) (4.2) pts Prior year development 1.0% 0.9% (0.1) pts Adjustments for ceded premium under reinsurance contracts and other 0.4% 0.0% (0.4) pts Accident year loss ratio, as adjusted 61.8% 60.8% 1.0 pts Expense ratio Calendar year combined ratio 34.3% 34.7% 97.4% 101.5% 96.1% 95.5% (0.4) pts (4.1) pts 0.6 pts Key Takeaways General Insurance APTI declined primarily due to: - lower NII of $588M reflecting alternative investment losses primarily driven by hedge funds due to unfavorable equity market returns in the current quarter - higher CATS of $419M, which includes $272M for estimated COVID-19 losses related to Travel, Contingency, Commercial Property, Trade Credit, Workers' Compensation and Validus Re. The remainder of the CATS were primarily weather-related - partially offset by a 1 point improvement in AYLR, as adjusted Life and Retirement APTI declined primarily due to declines in equity markets and widening spreads in credit markets triggered by the ongoing COVID-19 crisis Other Operations APTL included $84M of reductions from consolidation, eliminations and other adjustments. Before consolidation, eliminations and other adjustments, the increase was primarily due to higher general operating expenses (GOE) of $66M from higher compensation, including the issuance of a $500 grant to each employee globally, which equates to $30M in the aggregate. In addition, the loss included higher technology costs, partially offset by higher NII associated with consolidated investment entities Legacy Portfolio APTL primarily driven by lower NII due to mark-to-market losses on FVO securities and alternative investment losses Accident year combined ratio, as adjusted AIG * Refers to financial measure not calculated in accordance with generally accepted accounting principles (Non-GAAP); definitions and abbreviations of Non-GAAP measures and reconciliations to their closest GAAP measures can be found in this presentation under the heading Glossary of Non-GAAP Financial Measures and Non-GAAP Reconciliations. 1) Includes corporate GOE, certain compensation expenses, interest and other expenses not allocated to segments as well as consolidation, eliminations and other adjustments. 5#6Net Investment Income, APTI basis, decrease driven by the capital market impact on FVO securities and alternative investments ($ in millions) Interest and dividends Annualized yield Alternative investment income1 1Q20 Investment Income and Yield by Segment (APTI Basis) General Insurance $668 Life and Retirement $1,960 Other and Legacy $544 Total AIG $3,172 4.27% n/a (23) n/a 16 0.75% (194) $2,994 3.60% 4.55% (73) 112 Annualized yield (5.69%) 16.57% Other investment income (loss) 45 17 (256) Total AIG Investment Income Investment expenses $640 $2,089 $265 Consolidations and eliminations 1Q20 Net Investment Income 1Q19 Net Investment Income Variance $588 $1,089 ($501) $2,003 $2,042 ($39) 148 (147) $108 $2,699 $587 $3,718 ($479) ($1,019) Invested Assets as of March 31, 2020 - $332B $185.0 $2.8 $4.6 General Insurance Avg. Duration of Fixed Maturities² NA: 3.2 Years Int'l: 3.6 Years Life and Retirement Other Investments $83.1 Alternative Investments $177.6 $4.8 $2.9 $56.4 ■Fixed Income, AFS & loans Avg. Duration of Fixed Maturities² $7.6 $0.6 8.1 Years $75.4 $48.2 General Insurance Life and Retirement Other and Legacy 1) Hedge Funds are typically reported on the balance sheet date, while Private Equity funds typically have a 1 quarter lag due to the timing of receipt of financial reports. AIG 2) Includes run-off businesses. 6#71Q19 and 1Q20 noteworthy items 1Q19 - Income / (Loss) 1Q20 - Income / (Loss) ($ in millions) Pre-tax After-tax1 General Insurance - Catastrophe losses, net of reinsurance, ex. COVID-19 General Insurance - Catastrophe losses related to COVID-19 Favorable prior year loss reserve development, net of reinsurance² EPS (diluted) ($175) ($138) ($0.16) Pre-tax After-tax¹ (272) EPS (diluted) ($147) ($116) ($0.13) (215) (0.24) 74 58 0.07 60 47 0.05 Investment Performance: Better (worse) than expected alternative investment returns³ 236 186 0.21 (198) (156) (0.18) Worse than expected DIB and GCM returns (5) (4) (0.00) (46) (36) (0.04) Better (worse) than expected fair value changes on 15 12 0.01 (321) (254) (0.29) Fixed Maturity Securities - Other accounted under FVO³ Core 33 26 0.03 (54) (43) (0.05) Legacy (18) (14) (0.02) (267) (211) (0.24) Total noteworthy items $145 $115 $0.13 ($924) ($730) ($0.83) 1) Computed using a U.S. statutory tax rate of 21%. AIG 2) Includes General Insurance and Legacy General Insurance Runoff. 3) The annualized expected rate of return for 1Q19 and 1Q20 is 8% and 6% for alternative investments and 6% and 4% for FVO fixed maturity securities, respectively; FVO fixed maturity securities includes the fair value changes on the DIB and GCM asset portfolios. 7#8AIG 200 is a global, multi-year initiative to achieve transformational change at AIG and $1B of GOE savings The Standard Commercial Underwriting Platform will modernize global underwriting capabilities by simplifying processes and tools to create a contemporary data architecture General Insurance 2 Transform Japan business into a next-generation digital insurance company with the ability to offer "anywhere, anytime, any device" experience 3 Shared Services 5 Information Technology 6 7 Finance 8 Improve decision-making in Private Client Group through modernizing legacy technology and moving to digitized workloads Create AIG Global Operations, a multifunctional, fully integrated operating model with digitally enabled end-to-end process and increased scope and scale Transform IT operating model Build a modern, scalable and secure technology foundation to improve operational stability and enable faster business technology deployment Transform Finance operating model Modernize infrastructure through technology solutions and simplify finance and actuarial processes, while materially improving analytics capabilities Create a highly efficient global procurement and sourcing organization to leverage our purchasing power, maximize value, minimize risk, and support sustained profitable growth Procurement 9 Real Estate 10 Optimize portfolio to ensure it is cost effective, resilient and reflective of global footprint Expected AIG 200 Costs to Achieve and GOE Benefits 2020 2021 2022 Total Comments ($M) Investment / Costs to Achieve Capitalized assets, not in APTI initially $100 $200 $100 $400 Restructuring and Other charges, $250 $300 $350 $900 in Net Income Amortized / depreciated in GOE / APTI when IT or capital asset placed into service¹; during 1Q20, $9M of costs were capitalized No impact to APTI; 1Q20 Net Income includes $23M of restructuring and other charges for AIG 200, primarily related to professional fees Total investment $350 $500 $450 $1,300 Run-rate net GOE savings, cumulative1 $300 $600 $1,000 1Q20 GOE savings of $10M, which translates to $60M on an annualized basis, part of the planned $300M by year-end Annual net benefit to APTI¹ $150² ~75% in Gl; ~12.5% in L&R; ~12.5% in Other Operations AIG 1) Includes estimated amortization / depreciation related to the capitalized assets of $10M-$15M and -$25M-$30M for 2021 and 2022, respectively. The unamortized balance will be expensed at ~$50M per year from 2023-2027 and the remainder will trail off in the periods thereafter. 2) Initial estimate based on full year expense savings due to AIG 200 that result in $300M exit run-rate in 4Q20. 8#9AIG's capital position remains strong at the holding company and principal insurance companies Capital Structure ($B) $90.8 $86.1 Hybrids $1.5 $1.5 Year / Quarter End Life and Retirement Companies Risk Based Capital (RBC) Ratios² General Insurance Companies ■Financial Debt¹ $21.8 $21.4 $1.3 $1.8 ■Credit Facility $1.7 $5.0 drawdown 2018 389% (CAL) 394% (ACL) $9.0 $0.5 $8.5 $0.5 ■NCI AOCI Total Equity: $67.4 $51.2 Total Equity:- $61.8 $52.1 ■Preferred Equity 2019 402% (CAL) 419% (ACL) ■Tax attribute DTA ■Adjusted S/E $(1.0) 1Q20E3 405% -415% (CAL) 415%-420% (ACL) December 31, 2019 March 31, 2020 Dec. 31, Mar. 31, Ratios: 2019 2020 Pending finalization of Statutory financials Credit Ratings5 Hybrids / Total capital 1.7% 1.8% Financial debt / Total capital 24.0% 24.9% S&P Moody's Fitch A.M. Best Syndicated credit facility4 Total Hybrids & Financial debt / Total capital 25.7% 1.5% 28.2% AIG - Senior Debt BBB+ Baa1 BBB+ NR Preferred stock / Total capital 0.5% 0.6% General Insurance - FSR A+ A2 A A Total debt and preferred stock / Total capital 26.2% 28.8% Total debt and preferred stock/ Life and 27.8% 28.4% A+ A2 A+ A Retirement - FSR Total capital (ex. AOCI) AIG 1) 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. 2) 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. 2018 RBC ratio for Life and Retirement reflects the impact of tax reform. 3) Preliminary range subject to change with completion of statutory closing process 4) Borrowings under credit facility represents the $1.3B AIG borrowed under its $4.5B revolving syndicated credit facility on March 20, 2020. 5) As of the date of this presentation, S&P, Moody's, Fitch and A.M. Best have Stable outlooks. For General Insurance companies FSR and Life and Retirement companies FSR, ratings only reflect those of the core insurance companies. 9#10Parent liquidity remains strong at $7.5B at March 31, 2020 $7.6 $4.8 $2.8 Changes in Parent Liquidity ($B) Cash & S/T Investments Unencumbered Securities $1.3 $0.9 ($0.5) ($0.3) $7.5 ($0.7)1 ($0.8)1,2 $2.4 Includes: Life Dividends: $0.2B Gl Dividends: $0.2B Tax Payments from Subsidiaries: $0.5B $5.1 Balance at 12/31/2019 Insurance Company Distributions Revolving Syndicated Credit Facility Draw Down Share Repurchases Shareholder Dividends Debt Repurchases & Interest Paid Other Balance at 3/31/2020 In March, AIG borrowed, and it currently has outstanding, $1.3B under its $4.5B committed revolving syndicated credit facility. Also, in March, AIG redeemed $350M aggregate principal amount of its 4.35% Callable Notes Due 2045 AIG 1) The correct amount for debt repurchases & interest paid is ($0.6B), as reported on page 139 of the First Quarter 2020 10-Q. As a result, the remaining difference is in Other. 2) Primarily reflects short-term incentive payout. 10 10#11General Insurance: 1.0 pts improvement in AYLR results; COVID-19 impact of $272M included in CATS ($ in millions) 1Q19 1Q20 Net premiums written $6,033 $5,921 Net premiums earned $6,713 $6,079 Loss and loss adjustment expense Catastrophe Losses, Net of Reinsurance ($M) 1Q20 Impact of COVID-19 $419 $272 4,233 4,059 Acquisition expenses 1,462 1,331 General operating expenses $214 839 776 $149 $175 Underwriting income (loss) $179 ($87) Net investment income $1,089 $588 $17 Adjusted pre-tax income $205 $123 $1,268 $501 $158 Exclude: Impact of COVID-19 ($272) Adjusted pre-tax income (ex. COVID-19) $1,268 $773 1Q19 North America 1Q20 International Calendar Year Combined Ratios 1 Accident Year Combined Ratios (excl. CATs) walk AYCR, as adjusted, 97.4% 2.7% 12.5% 21.8% 101.5% 6.9% 12.8% 96.1% 21.9% 1.0% 34.3% improved 0.6 pts 95.5% (0.4%) 34.7% 61.8% 60.8% 61.8% AYLR, as adjusted improved 1.0 pts 60.8% -1.0% 1Q19 -0.9% 1Q20 1Q19 AYLR UW Actions/Mix Expense Ratio 1Q20 ■AYLR, As Adj. Acq. Ratio ■GOE Ratio ■PYD Ratio ■CAT Ratio ■AYLR, As Adj. Expense Ratio 1) Calendar year combined ratio includes adjustments for ceded premium under reinsurance contracts and other in 1Q19 and 1Q20. AIG 11#12Personal Insurance 1Q19 $2,578 1,998 580 General Insurance: North America results reflect lower NII and the impact of COVID-19; AY underwriting improvement in Commercial Lines and Personal Insurance ($ in millions) Net premiums written Commercial Lines 1Q20 $2,770 Key Takeaways: 2,225 Net premiums earned $3,153 545 $2,919 Commercial Lines 2,375 2,145 ☐ Personal Insurance 778 774 Underwriting income (loss) ($11) ($86) Commercial Lines 54 (1) Personal Insurance (65) (85) Net investment income $945 $495 Adjusted pre-tax income $934 $409 Exclude: Impact of COVID-19 ($123) Adjusted pre-tax income (ex. COVID-19) $934 $532 Underwriting Ratios: 1Q19 1Q20 B/(W) ☐ Net premiums written increased by 7% to $2.8B primarily due to growth in the assumed reinsurance business, Retail and Wholesale Property, as well as strong Commercial Lines rate increases, partially offset by underwriting actions taken through 2019 AYLR, as adjusted, improved 1.7 pts due to change in business mix, strong rate increases, as well as benefits from underwriting actions taken in 2019 Expense ratio decreased slightly as the decline in GOE, driven by ongoing expense discipline, was greater than the decline in net premiums earned Catastrophe losses of $205M includes $123M related to COVID-19 NII decreased reflecting alternative investment losses and lower returns on fixed income securities North America Combined Ratios 1 Commercial Lines AY combined ratio, as adjusted 96.4% 95.5% 0.9 pts 100.3% 103.0% Catastrophe losses and 5.1% 7.0% 5.1% 6.7% (1.6) pts reinstatement premiums (1.8%) (0.2%) Prior year development (2.8%) (2.2%) (0.6) pts 98.0% 96.2% Combined ratio¹ 97.7% 100.0% (2.3) pts AYCR, as 11.4% adjusted, 11.2% Personal Insurance 19.5% improved 1.8 pts 19.6% AY combined ratio, as adjusted 103.0% 98.0% 5.0 pts Catastrophe losses and 5.0% 7.9% (2.9) pts reinstatement premiums 67.1% 65.4% Prior year development Combined ratio¹ 1.2% 108.3% 5.1% 111.0% (3.9) pts AYLR, as adjusted, improved 1.7 pts (2.7) pts AIG 1) Calendar year combined ratio includes adjustments for ceded premium under reinsurance contracts and other in 1Q19 and 1Q20. 1Q19 Calendar Year Combined Ratio AYCR, As adjusted GOE Ratio 1Q20 CAT Ratio Acquisition Ratio PYD Ratio AYLR, As adjusted 12#131Q19 Net premiums written $3,455 1Q20 $3,151 1,780 1,577 General Insurance: International results reflect the impact of COVID-19 and lower NII; AY underwriting improvement in Personal Insurance ($ in millions) Commercial Lines Key Takeaways: Personal Insurance 1,675 1,574 Net premiums earned $3,560 $3,160 Commercial Lines 1,684 1,513 Personal Insurance 1,876 1,647 Underwriting income (loss) $190 ($1) Commercial Lines 68 (41) Personal Insurance 122 40 Net investment income $144 $93 Adjusted pre-tax income $334 Exclude: Impact of COVID-19 $92 ($149) Adjusted pre-tax income (ex. COVID-19) $334 $241 Underwriting Ratios: 1Q19 1Q20 B/(W) ■ Net premiums written decreased 9% on a reported basis and 8% on a constant dollar basis, driven by lower production primarily due to underwriting actions taken through 2019, as well as lower premiums from run-off business, partially offset by premium rate increases ▪AYLR, as adjusted, improved 0.9 pts reflected premium rate increases, benefits from underwriting actions and better risk selection Expense ratio increased 1.1 pts as the decline in expenses was less than the decline in net premiums earned ■ Catastrophe losses of $214M includes $149M related to COVID-19 ■ NII decreased reflecting lower returns on fixed income securities International Combined Ratios Commercial Lines AY combined ratio, as adjusted 92.6% 93.8% (1.2) pts 94.6% 100.0% Catastrophe losses and 0.5% 6.7% 1.0% 11.3% (10.3) pts reinstatement premiums (0.4%) (1.4%) Prior year development 2.4% (2.5%) 4.9 pts 94.5% 94.7% Combined ratio 96.0% 102.6% (6.6) pts 13.4% 14.2% Personal Insurance 23.8% 24.1% AY combined ratio, as adjusted 96.3% 95.5% 0.8 pts Catastrophe losses and 0.0% 2.7% (2.7) pts reinstatement premiums 57.3% Prior year development Combined ratio (2.8%) 93.5% (0.6%) (2.2) pts AYLR, as adjusted, improved 0.9 pts 56.4% 97.6% (4.1) pts AIG 1Q19 ☐ AYCR, As adjusted Calendar Year Combined Ratio GOE Ratio CAT Ratio 1Q20 PYD Ratio Acquisition Ratio AYLR, As adjusted 13#14Life and Retirement: Decline in APTI driven by lower net investment income, unfavorable impacts from equity markets, widening credit spreads and continued headwinds from lower interest rates Adjusted Return on Attributed Common Equity Premiums and Deposits ($B) AIG 15.0% 8.4% $8.4 $1.1 $6.9 $1.0 $0.9 $2.1 $1.0 $1.9 $4.2 $3.1 1Q19 1Q20 Adjusted Pre-Tax Income ($M) 1Q19 ■Individual Retirement ■ Group Retirement 1Q20 ■Life Insurance ■ Institutional Markets General Operating Expenses ($M) $924 $405 $385 $68 $16 $15 $116 $140 $574 $232 $141 $70 $55 $143 $111 $139 $508 $306 $118 $110 1Q19 1Q20 1Q19 1Q20 ■Individual Retirement ■ Group Retirement ■Life Insurance ■ Individual Retirement ■Life Insurance ■ Institutional Markets ■ Group Retirement ■Institutional Markets 14#15Life and Retirement: Individual Retirement APTI decreased due to unfavorable equity markets and widening credit spreads; fixed annuity sales were lower due to disciplined pricing which resulted in negative net flows ($ in millions) Premiums and deposits Premiums Policy fees Key Takeaways: ■ APTI is lower than 1Q19 as a result of unfavorable impacts from equity markets driving higher deferred acquisition cost (DAC) and sales inducement amortization and higher reserves, along with widening credit spreads driving lower income on FVO securities ■ Net flows, excluding Retail Mutual Funds, are slightly negative in 1Q20 and unfavorable compared to 1Q19 due to lower interest rates in 1Q20, driving lower Fixed Annuity sales 1Q19 1Q20 $4,186 $3,116 11 41 193 207 Net investment income 999 975 Advisory fee and other income 148 147 Total adjusted revenues 1,351 1,370 Benefits, losses and expenses 843 1,064 Adjusted pre-tax income (APTI) $508 $306 ■ Continued spread compression as higher yielding investment assets roll off the large in-force portfolio, the result of maturities, calls and structured paydowns Net Flows ($B) Assets Under Administration (AUA - $B) ■ AUA is flat with 1Q19 resulting from year over year new business growth, primarily index annuities, offset by equity market decline late in 1Q20 Premiums and Deposits 1Q19 $1.8 $0.6 $1.4 $0.4 $4.2 1Q20 $0.6 $0.9 $1.3 $0.3 $3.1 Surrender and Other Withdrawals 1Q19 $1.0 $0.9 $0.2 $1.1 $3.2 1Q20 $0.9 $1.1 $0.2 $1.8 $3.9 Net Flows1 1Q19 $0.1 1Q20 ($1.6) ■Fixed Annuities Variable Annuities Index Annuities Retail Mutual Funds -0.1% $146.4 $13.9 $47.3 $85.2 $146.2 $7.8 $43.2 $95.2 1Q19 1Q20 ■General Accounts ■Separate Accounts Retail Mutual Funds 1.97% Base Net Investment Spread 3.19% 2.83% 1.75% 1Q19 1Q20 AIG 1) Includes death and other contract benefits. Net Flows excluding Retail Mutual Funds is ($98M) in 1Q20 compared with $817M in 1Q19. ■Fixed Annuities Variable and Index Annuities 15#16Life and Retirement: Group Retirement APTI decreased due to unfavorable equity markets and lower income on FVO securities; lower surrenders resulted in improved net flows ($ in millions) Premiums and deposits Premiums 1Q19 1Q20 $2,063 $1,855 6 Policy fees 100 109 Net investment income 541 517 Advisory fee and other income 64 62 Total adjusted revenues 709 694 Benefits, losses and expenses 477 551 Adjusted pre-tax income (APTI) $232 $143 Net Flows ($B) Premiums and Deposits 1Q19 $2.1 Key Takeaways: ■ APTI is lower than 1Q19 driven by unfavorable impacts from equity markets resulting in higher DAC amortization and higher reserves. Widening credit spreads resulted in lower income on FVO securities ■ Net flows remain negative, although favorable to 1Q19 primarily due to lower surrenders, partially offset by lower deposits ■ AUA is lower than 1Q19 primarily due to unfavorable equity market performance in 1Q20 ■ Continued focus on active spread management in the current low interest rate environment Assets Under Administration (AUA - $B) $102.1 $19.5 $35.5 1Q20 $1.9 $47.1 Surrender and Other Withdrawals 1Q19 ■General Accounts 1Q19 $2.8 1Q20 $2.3 Net Flows1 1Q19 1Q20 ($0.9) ($0.6) -5.8% $96.2 $17.8 $30.2 $48.3 1Q20 ■Separate Accounts Mutual Funds Base Net Investment Spread 1.83% 1.70% 1Q19 1Q20 1) Includes death and other contract benefits. AIG 16#17Life and Retirement: Life Insurance APTI decreased due to higher mortality and insurance reserves and prior year reserve and reinsurance refinements ($ in millions) Premiums and deposits Premiums Policy fees 1Q19 1Q20 $995 $1,015 395 419 373 370 Net investment income 291 291 Other income¹ 14 11 Total adjusted revenues 1,073 1,091 ■ Benefits, losses and expenses 957 1,036 Adjusted pre-tax income (APTI) $116 $55 AIG By Product $125 $122 22% 27% 26% 24% 52% 1Q19 49% 1Q20 ■Term Universal Life Group and Other Life Key Takeaways: ■ APTI is lower than 1Q19 due to higher mortality and insurance reserves, and prior year favorable reserve and reinsurance refinements ■ Premiums reflect growth in term and international life and health products Mortality is better than pricing assumptions, however 1Q20 includes an IBNR reserve strengthening related to potential death notice delays due to COVID-19 New Business Sales ($M) By Geography $125 $122 39% 61% 40% 60% 1Q19 1Q20 US ■ UK 1) Includes Other income primarily related to commission and profit sharing revenues received by Laya Healthcare from the distribution of insurance products. 17#181Q19 1Q20 $1,112 $917 819 757 41 40 211 220 1,071 1,017 Benefits, losses, and expenses 1,003 947 Life and Retirement: Institutional Markets benefited from disciplined growth with improved margins ($ in millions) Premiums and deposits Premiums Policy fees Net investment income Total adjusted revenues ■ Premiums and deposits are lower than 1Q19 resulting from slightly lower Guaranteed Investment Contract and Pension Risk Transfer issuance ■ Net investment income is higher on a growing asset base and slightly favorable alternative investment returns ■ Continue to focus on maintaining pricing and expense discipline Key Takeaways: Adjusted pre-tax income (APTI) $68 $70 Premiums and Deposits ($M) GAAP Reserves by Line of Business ($B) $1,112 7.2% $20.8 $22.3 $250 $917 $6.9 $6.7 $124 $1 $0.6 $1.0 $4.9 $4.9 $746 $696 $6.6 $5.1 AIG $116 1Q19 $97 $(1) 1Q20 ■Structured Settlements ■ Stable Value Wrap ■ Pension Risk Transfer $3.1 $3.3 1Q19 1Q20 ■COLI/BOLI ■ Guaranteed Investment Contracts 18#19Other Operations ($ in millions) 1Q19 1Q20 Corporate (Parent and Service Companies): Π General operating expenses ($181) ($244) Interest expense (260) (259) All other income (expense), net 41 20 Total Corporate (Parent and Service Companies) (400) (483) Consolidated investment entities 22 48 Blackboard (9) (16) Adjusted pre-tax loss before consolidation (387) (451) and eliminations Consolidation, eliminations and other adjustments: Consolidated investment entities1 (92) (104) Other² 22 20 Total consolidation, eliminations and other adjustments Adjusted pre-tax loss (70) (84) ($457) ($535) AIG Key Takeaways: ■ Revised and simplified the presentation to help identify key drivers of APTI ☐ Other Operations consists of businesses and items not attributed to the General Insurance and Life and Retirement segments or the Legacy Portfolio. It includes AIG Parent corporate and interest expense; consolidated investment entities; Blackboard; deferred tax assets related to tax attributes; and intercompany eliminations APTL included $84M of reductions from consolidation, eliminations and other adjustments. Before consolidation, eliminations and other adjustments, the increase in the pre-tax loss was primarily due to higher GOE from higher compensation, including the issuance of a $500 grant to each employee globally, which equates to $30M in the aggregate, to help with their unanticipated costs due to COVID-19. In addition, the loss included higher technology costs, partially offset by higher net investment income associated with consolidated investment entities $33M of incremental GOE costs related to COVID-19 including a $30M employee grant plus associated remote working IT equipment ■ At the end of March, AIG decided to place Blackboard U.S. Holdings, Inc. (Blackboard), AIG's technology- driven subsidiary, into run-off. As a result of this decision, AIG recognized a pre-tax loss of $210 million, primarily consisting of asset impairment charges; this charge did not impact adjusted pre-tax income 1) Consolidation, eliminations and other adjustments - consolidated investment entities represents the elimination of the intercompany net investment income recorded by the General Insurance and Life and Retirement subsidiaries for their investments in consolidated investment entities. 2) Consolidation, eliminations and other adjustments - Other represents eliminations of intercompany transactions other than consolidated investment entities between Parent and the General Insurance and Life and Retirement subsidiaries. 19#20Legacy Portfolio ($ in millions) 1Q19 1Q20 General Insurance run-off lines $15 $36 Life and Retirement run-off lines 87 (133) Legacy Investments 10 (271) Adjusted pre-tax income (loss) $112 ($368) AIG Key Takeaways Legacy APTL driven primarily by investment losses, principally mark-to-market, on FVO investment portfolios in 1Q20 compared to gains in 1Q19 ■ Legacy Life and Retirement APTL primarily driven by alternative investment losses and lower returns on FVO securities Fortitude Re ■ Included in the Legacy results is Fortitude Reinsurance Company Ltd (Fortitude Re). AIG agreed November 2019 to sell a controlling financial interest in Fortitude Group Holdings, LLC, the holding company for Fortitude Re. The sale is expected to close in mid-2020, subject to required regulatory approvals and other customary closing conditions Upon closing of the Fortitude Holdings sale, AIG will recognize a loss on deconsolidation relating to the portion of the unamortized balance of prepaid reinsurance assets that are not recoverable, if any, when AIG is no longer a controlling shareholder in Fortitude Holdings. As of March 31, 2020, the loss on the prepaid insurance assets and related DAC was $2.6B after-tax and would be incremental to any gain or loss recognized on the Fortitude Holdings sale. Due to the embedded derivative, the incremental gain or loss AIG will recognize on the Fortitude Holdings sale would be impacted, perhaps significantly, by market conditions existing at the time the sale closes 20 20#21Total Investments of $332.3B at March 31, 2020; 74% of investments in Fixed Maturities Fixed Income Portfolio March 31, 2020-$247.1B $139.2 $0.5 $36.2 Bonds, FVO All Other Investments March 31, 2020 $85.2B ■ Equities ■Mortgage-backed, asset-backed and collateralized $64.0 $1.2 Corporate debt $90.8 $46.4 $20.6 $9.6 ■Government and $4.5 $6.7 municipalities $6.9 $20.8 $49.4 $0.2 Short-term Investments Other Invested Assets Mortgage and other loans receivable $18.6 $25.3 $0.4 $0.0 $28.5 $16.9 $11.7 $6.7 General Insurance Life and Retirement Other and Legacy $3.7 $32.6 $6.5 $7.3 $6.7 $10.2 $4.6 General Insurance Life and Other and Retirement Legacy AIG Note: Amounts shown for segments are before consolidations and eliminations. 21 21#22Appendix AIG 22#23Expanded Investment Portfolio Disclosures in Financial Supplement As the only major multi-line or composite insurer in the U.S., AIG's consolidated investment portfolio is frequently compared to Life-only or P&C-only peers, which tend to have very different asset allocation, duration and credit characteristics due to the very different liability and product profiles. This quarter, AIG significantly expanded its disclosures in the financial supplement to provide greater detail on its investment portfolio, including information on the separate General Insurance, Life and Retirement and Legacy portfolios. AIG's investment portfolio has been significantly de-risked over the last 5 years and with $332B assets, is well diversified, with solid credit characteristics. AIG 23 23#24~90% of Fixed Income portfolio is rated Investment Grade NAIC Designation General Insurance Investment Quality Rating NAIC 1 Other fixed maturity securities NAIC 2 Life and Retirement Other & Legacy Total AIG 19% 33% 12% 63% 11% 19% 9% 39% Mortgage-backed, asset-backed and collateralized 8% 14% 3% 24% 5% 20% 5% 30% Other fixed maturity securities 4% 19% 5% 29% Mortgage-backed, asset-backed and collateralized 1% 1% 0% 1% Sub-total Investment Grade 24% 53% 17% 93% Below Investment Grade 2% 3% 2% 7% Other fixed maturity securities 2% 3% 1% 6% Mortgage-backed, asset-backed and collateralized 0% 0% 1% 1% Total Fixed Maturities 26% 56% 19% 100% Composite AIG Credit Rating Investment Quality Rating General Insurance Life and Retirement Other & Legacy Total AIG AAA/AA/A 18% 31% 11% 60% Other fixed maturity securities 11% 19% 9% 40% Mortgage-backed, asset-backed and collateralized 7% 12% 2% 20% BBB 4% 20% 5% 30% Other fixed maturity securities 4% 19% 5% 28% Mortgage-backed, asset-backed and collateralized 0% 1% 0% 2% Sub-total Investment Grade 22% 51% 16% 90% Below Investment Grade 4% 6% 2% 10% Other fixed maturity securities 2% 4% 1% 6% Mortgage-backed, asset-backed and collateralized 2% 2% 1% Total Fixed Maturities 26% 57% 18% 4% 100% AIG Note: Amounts shown for segments are before consolidations and eliminations. 24 24#25Corporate debt portfolio held primarily in Life and Retirement Corporate Debt March 31, 2020 - $144.3B $25.3 $0.7 $3.3 $1.4 $1.3 $2.4 $3.3 $1.5 $1.6 $9.8 General Insurance $90.8 $13.6 $3.3 $7.1 $5.2 $6.4 $13.0 $6.4 Other Basic ■Energy ■Capital goods Consumer cyclical ■Consumer noncyclical ■Communications Utilities $28.5 $12.4 $1.2 $5.3 ■Financial Institutions $2.3 $1.3 $1.7 $4.0 $23.5 $2.0 $5.2 $5.6 Life and Retirement Other and Legacy AIG Note: Amounts shown for segments are before consolidations and eliminations. 25#26Over 80% of Mortgage-backed, asset-backed and collateralized are rated Investment Grade (NAIC & AIG Composite Rating) Mortgage-backed, asset-backed and collateralized March 31, 2020 - $62.2B $36.2 $4.9 $6.0 $20.6 $8.8 $2.8 $3.7 $3.6 $6.7 $16.5 $0.9 $10.5 $1.8 $4.2 $(0.3) General Insurance Life and Retirement AIG Note: Amounts shown for segments are before consolidations and eliminations. Other and Legacy ■Asset-Backed Securities ■Collateralized Debt Obligations Commercial Mortgage Back Securities ■Residential Mortgage Back Securities 26#27Hedge Funds and Private Equity portfolio held primarily in General Insurance Other Invested Assets March 31, 2020 - $18.0B $6.9 $6.5 $0.6 $1.1 $6.7 $0.0 $0.6 $3.6 ■ All other $3.8 $3.3 $1.5 General Insurance $2.8 $2.0 $0.5 Life and Retirement AIG Note: Amounts shown for segments are before consolidations and eliminations. $0.3 Other and Legacy Real Estate Investments Private Equity Hedge Funds 27#2899% of Commercial Mortgage Loans are in good standing ($M) $14,154 $1 $10,622 $57 $87 Commercial Mortgage Loans March 31, 2020 - $36.3B Exposure by Class of Loan Based on Amortized Cost $14,153 $5,246 $10,478 $25 $3,574 $2,257 $5,221 $3,574 $101 $2,156 $438 $438 Apartments Offices Retail Industrial Hotel Others AIG ■> 90 days delinquent or in process of foreclosure ■90 days or less delinquent ■Restructured In good standing 28#29Glossary of Non-GAAP Financial Measures and Non-GAAP Reconciliations AIG 29#30Glossary of Non-GAAP Financial Measures Glossary of Non-GAAP Throughout this presentation, we present our financial condition and results of operations in the way we believe will be most meaningful and representative of our business results. Some of the measurements we use are "Non-GAAP financial measures" under Securities and Exchange Commission rules and regulations. GAAP is the acronym for generally accepted accounting principles in the United States. The non-GAAP financial measures we present may not be comparable to similarly-named measures reported by other companies. The reconciliations of such measures to the most comparable GAAP measures in accordance with Regulation G are included within the relevant tables or in the First Quarter 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. estimate for DIB & GCM returns, net reserve discount change and returns on alternative investments). ■ Book Value per Common Share, Excluding Accumulated Other Comprehensive Income (AOCI), and Book Value per Common Share, Excluding AOCI and Deferred Tax Assets (DTA) (Adjusted Book Value per Common Share) are used to show the amount of our net worth on a per-common share basis. We believe these measures are useful to investors because they eliminate 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. These measures also eliminate 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. 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. Book value per common share, excluding AOCI, is derived by dividing Total AIG Common Shareholders' equity, excluding AOCI, by total common shares outstanding. Adjusted Book Value per Common Share is derived by dividing Total AIG common shareholders' equity, excluding AOCI 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) and Other Intangible Assets (Tangible Book Value per Common Share), Tangible Book Value per Common Share, Excluding Accumulated Other Comprehensive Income (AOCI) and Tangible Book Value per Common Share, Excluding AOCI and Deferred Tax Assets (DTA) (Adjusted Tangible Book Value per Common Share) are used to provide more accurate measure of the realizable value of shareholder on a per-common share basis. Tangible Book Value per Common Share is derived by dividing Total AIG common shareholders' equity, excluding Goodwill, VOBA, VODA and Other intangible assets, by total common shares outstanding (Tangible Book Value per Common Share). Tangible Book value per common share, excluding AOCI, is derived by dividing Total AIG Common Shareholders' equity, excluding intangible assets and AOCI, by total common shares outstanding. Adjusted Tangible Book Value per Common Share is derived by dividing Total AIG common shareholders' equity, excluding intangible assets, AOCI and DTA (Adjusted Tangible Common Shareholders' Equity), by total common shares outstanding. ■ AIG Return on Common Equity (ROCE) - Adjusted After-tax Income Excluding AOCI 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. 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. ■ Core, General Insurance, Life and Retirement and Legacy Adjusted Attributed Common Equity is an attribution of total AIG Adjusted Common Shareholders' Equity to these segments based on our internal capital model, which incorporates the segments' respective risk profiles. Adjusted attributed common equity represents our best estimates based on current facts and circumstances and will change over time. ■ Core, General Insurance, Life and Retirement and Legacy Return on Common Equity - Adjusted After-tax Income (Adjusted Return on Attributed Common Equity) is used to show the rate of return on Adjusted Attributed Common Equity. Adjusted Return on Attributed Common Equity is derived by dividing actual or annualized Adjusted After- tax Income by Average Adjusted Attributed Common Equity. Adjusted After-tax Income Attributable to Core, General Insurance, Life and Retirement and Legacy 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 capital 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 30#31Glossary 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 operating segments. 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; • 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 acquired businesses; losses from the impairment of goodwill; and non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes or changes to accounting principles. Adjusted After-tax Income attributable to AIG Common Shareholders (AATI) is derived by excluding the tax effected adjusted pre-tax income (APTI) adjustments described above, dividends on preferred stock, and the following tax items from net income attributable to AIG: deferred income tax valuation allowance releases and charges; - changes in uncertain tax positions and other tax items related to legacy matters having no relevance to our current businesses or operating performance; and net tax charge related to the enactment of the Tax Cuts and Jobs Act (Tax Act); and by excluding the net realized capital gains (losses) from noncontrolling interests. 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. AIG 31#32Glossary of Non-GAAP Financial Measures Glossary of Non-GAAP ■ 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) 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] g) Accident year combined ratio, as adjusted = AYLR + Expense ratio ÷ h) Catastrophe losses (CATS) and reinstatement premiums = [Loss and loss adjustment expenses incurred - (CATS)] + [NPE +/(-) CYRIPS] - Loss ratio i) Prior year development net of (additional) return premium related to PYD on loss sensitive business = [Loss and loss adjustment expenses incurred - CATS - PYD] + [NPE +/(-) CYRIPS +/(-) PYRIPS + (AP)RP] – Loss ratio - CAT ratio - ■ Premiums and deposits: includes direct and assumed amounts received and earned on traditional life insurance policies, group benefit policies and life-contingent payout annuities, as well as deposits received on universal life, investment-type annuity contracts, Federal Home Loan Bank (FHLB) funding agreements and mutual funds. Results from discontinued operations are excluded from all of these measures. AIG 32#33Non-GAAP Reconciliations Adjusted Pre-tax and After-tax Income - Consolidated (in millions) Pre-tax income from continuing operations Adjustments to arrive at Adjusted pre-tax income 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 realized capital (gains) losses (a) (Income) loss from divested businesses Non-operating litigation reserves and settlements Favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements Net loss reserve discount charge Integration and transaction costs associated with acquired businesses Restructuring and other costs Professional fees related to regulatory or accounting changes Adjusted pre-tax income After-tax net income, including noncontrolling interests Noncontrolling interests (income) loss Net income attributable to AIG Dividends on preferred stock Net income attributable to AIG common shareholders Adjustments to arrive at Adjusted after-tax income (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 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 realized capital (gains) losses (a)(c) (Income) loss from discontinued operations and divested businesses (c) 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 acquired businesses Restructuring and other costs Professional fees related to regulatory or accounting changes Noncontrolling interests primarily related to net realized capital gains (losses) of Fortitude Holdings' standalone results (d) Adjusted after-tax income attributable to AIG common shareholders Weighted average diluted shares outstanding Income per common share attributable to AIG common shareholders (diluted) Adjusted after-tax income per common share attributable to AIG common shareholders (diluted) Quarterly 1Q19 1Q20 1,154 $ 2,558 (96) 7 (99) 538 (79) 191 (2) 17 474 (3,502) 216 1 (6) (27) (8) 473 56 7 2 47 90 13 1.847 $ 172 $ 937 $ 1,654 (283) 95 $ 654 $ 1,749 7 $ 654 $ 1,742 (12) 5 (38) 283 (76) 5 (78) 425 (62) 151 (1) 13 365 (2,735) (5) 171 (5) (22) (6) 374 44 5 2 37 71 10 247 (77) $ 1.388 $ 99 877.5 878.9 S 0.75 $ 1.98 1.58 0.11 AIG (a) Includes all net realized capital gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication. (b) First quarter 2020 includes valuation allowance established against a portion of foreign tax credit and separate return limitation year net operating loss carryforwards of AIG's U.S. federal consolidated income tax group. (c) Includes the impact of non-U.S. tax rates which differ from the applicable U.S. statutory tax rate and tax-only adjustments. (d) Noncontrolling interests is primarily due to the 19.9 percent investment in Fortitude Group Holdings, LLC (Fortitude Holdings) by an affiliate of The Carlyle Group L.P. (Carlyle), which occurred in the fourth quarter of 2018. Carlyle is allocated 19.9 percent of Fortitude Holdings' standalone financial results. Fortitude Holdings' results are mostly eliminated in AIG's consolidated income from continuing operations given that its results arise from intercompany transactions. Noncontrolling interests is calculated based on the standalone financial results of Fortitude Holdings. The most significant component of Fortitude Holdings' standalone results is the change in fair value of the embedded derivatives which changes with movements in interest rates and credit spreads, and which is 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. 33 33#34Three Months Ended March 31, $ 60,787 485 S 60,173 485 60,302 59,688 2,128 (994) 58,174 60,682 9,926 8,535 48.248 52.147 869.7 861.3 $ 69.33 $ 69.30 66.89 70.45 55.47 60.55 Non-GAAP Reconciliations Book Value Per Common Share and Return on Common Equity (in millions, except per common share data) Total AIG shareholders' equity Less: Preferred equity Total AIG common shareholders' equity (a) Less: Accumulated other comprehensive income (AOCI) Less: Deferred tax assets (DTA)* Total AIG common shareholders' equity, excluding AOCI (b) Total adjusted common shareholders' equity (c) Total common shares outstanding (d) Book value per common share (a÷d) Book value per common share, excluding AOCI (b÷d) Adjusted book value per common share (c÷d) Tangible Book Value Per Common Share Total AIG shareholders' equity Less: Preferred equity Total AIG common shareholders' equity (a) Less Intangible Assets: Goodwill Value of business acquired Value of distribution channel acquired Other intangibles $ 60,787 $ 60,173 485 485 $ 60,302 $ 59,688 4,103 3,989 421 297 564 526 340 329 Total intangibles assets Total AIG tangible common shareholders' equity (e) Less: Accumulated other comprehensive income (AOCI) Total AIG tangible common shareholders' equity, excluding intangible assets and AOCI (f) Less: Deferred tax assets (DTA)* Total adjusted tangible common shareholders' equity (g) Total common shares outstanding (d) 5,428 5,141 54,874 54,547 2,128 (994) 52,746 55,541 9,926 8,535 42.820 47.006 869.7 861.3 Book value per common share (a÷d) Tangible book value per common share (e÷d) Tangible book value per common share, excluding AOCI (f÷d) Adjusted tangible book value per common share (g÷d) (in millions) Return On Common Equity Computations $ 69.33 $ 69.30 63.10 63.33 60.65 64.49 49.24 54.58 Quarterly 1Q19 1Q20 Actual or Annualized net income attributable to AIG common shareholders (h) Actual or Annualized adjusted after-tax income attributable to AIG common shareholders (i) $ 2.616 $ 6.968 Average AIG Common Shareholders' equity (j) Less: Average AOCI Less: Average DTA* Average adjusted common shareholders' equity (m) ROCE (h÷j) $ 5.552 $ 396 $ 58,332 $ 62,439 358 10,040 1,994 8,756 $ 47.934 $ 51.689 4.5% 11.6% 11.2% 0.8% Adjusted return on common equity (i+m) AIG * Represents deferred tax assets only related to U.S. net operating loss and foreign tax credit carryforwards on a U.S. GAAP basis and excludes other balance sheet deferred tax assets and liabilities. = 34#35Non-GAAP Reconciliations Return on Common Equity General Insurance (in millions) Adjusted pre-tax income Interest expense on attributed financial debt Adjusted pre-tax income including attributed interest Quarterly Life and Retirement (in millions) Quarterly 1Q19 1Q20 1Q19 1Q20 $ 1,268 $ 501 Adjusted pre-tax income $ 924 $ 574 144 151 Interest expense on attributed financial debt 37 61 Adjusted pre-tax income including attributed interest expense 1,124 350 expense 887 513 Income tax expense 252 83 Income tax expense 176 99 Adjusted after-tax income $ 872 S 267 Adjusted after-tax income $ 711 $ 414 Dividends declared on preferred stock 4 Dividends declared on preferred stock 3 Adjusted after-tax income attributable to common shareholders (a) $ 872 $ 263 Adjusted after-tax income attributable to common shareholders (a) $ 711 S 411 Ending adjusted attributed common equity $ 24,826 $ 24,931 Ending adjusted attributed common equity $ 18,280 $ 19,661 Average adjusted attributed common equity (b) 24,946 25,037 Average adjusted attributed common equity (b) 18,988 19,587 Adjusted return on attributed common equity (a+b) 14.0 4.2 % Adjusted return on attributed common equity (a+b) 15.0 % 8.4% Core (in millions) Adjusted pre-tax income Interest expense on attributed financial debt Adjusted pre-tax income including attributed interest Quarterly 1Q19 1Q20 $ 1,735 $ 540 Legacy (in millions) Quarterly 1Q19 1Q20 Adjusted pre-tax income (loss) $ 112 S (368) Interest expense on attributed financial debt expense 1,735 540 Adjusted pre-tax income (loss) including attributed interest Income tax expense 400 162 expense 112 (368) Adjusted after-tax income $ 1,335 $ 378 Income tax expense (benefit) 23 (78) Dividends declared on preferred stock 7 Adjusted after-tax income attributable to common Adjusted after-tax income (loss) attributable to common shareholders (a) $ 89 $ (290) shareholders (a) $ 1,335 $ 371 Ending adjusted attributed common equity $ 7,450 $ 7,842 Ending adjusted attributed common equity $ 40,798 $ Average adjusted attributed common equity (b) 39,767 44,305 44,259 Average adjusted attributed common equity (b) 8,168 7,430 Adjusted return on attributed common equity (a+b) 13.4% 3.4% Adjusted return on attributed common equity (a+b) 4.4% (15.6) AIG 35#36Non-GAAP Reconciliations Accident Year Loss Ratio, as adjusted, and Accident Year Combined Ratio, as adjusted General Insurance General Insurance - North America Quarterly Quarterly 1Q19 1Q20 Loss ratio 63.1 66.8 Loss ratio 1Q19 69.4 1Q20 72.2 Catastrophe losses and reinstatement premiums (2.7) (6.9)| Catastrophe losses and reinstatement premiums (5.1) (7.0)| Prior year development 1.0 0.9 Prior year development 1.8 0.2 Adjustments for ceded premium under reinsurance contracts Adjustments for ceded premium under reinsurance and other 0.4 contracts and other 1.0 Accident year loss ratio, as adjusted 61.8 60.8 Accident year loss ratio, as adjusted 67.1 65.4 Acquisition ratio 21.8 21.9 Acquisition ratio 19.5 19.6 General operating expense ratio 12.5 12.8 General operating expense ratio 11.4 11.2 Expense ratio 34.3 34.7 Expense ratio 30.9 30.8 Combined ratio 97.4 101.5 Combined ratio 100.3 103.0 Accident year combined ratio, as adjusted 96.1 95.5 Accident year combined ratio, as adjusted 98.0 96.2 General Insurance - North America - Commercial Lines Quarterly General Insurance - North America - Personal Insurance Quarterly 1Q19 1Q20 1Q19 1Q20 Loss ratio 70.7 72.7 Loss ratio 65.4 70.8 Catastrophe losses and reinstatement premiums (5.1) (6.7) Catastrophe losses and reinstatement premiums (5.0) (7.9) Prior year development 2.8 2.2 Prior year development (1.2) (5.1) Adjustments for ceded premium under reinsurance contracts Adjustments for ceded premium under reinsurance and other 1.0 contract 0.9 Accident year loss ratio, as adjusted 69.4 68.2 Accident year loss ratio, as adjusted 60.1 57.8 Acquisition ratio 15.2 15.9 Acquisition ratio 32.5 29.6 General operating expense ratio 11.8 11.4 General operating expense ratio 10.4 10.6 Expense ratio 27.0 27.3 Expense ratio 42.9 40.2 Combined ratio 97.7 100.0 Combined ratio 108.3 111.0 Accident year combined ratio, as adjusted 96.4 95.5 Accident year combined ratio, as adjusted 103.0 98.0 AIG 36#37Non-GAAP Reconciliations Accident Year Loss Ratio, as adjusted, and Accident Year Combined Ratio, as adjusted General Insurance - International General Insurance - International - Quarterly Commercial Lines Quarterly 1Q19 1Q20 1Q19 1Q20 Loss ratio 57.4 61.7 Loss ratio 63.0 67.0 Catastrophe losses and reinstatement premiums (0.5) (6.7) Catastrophe losses and reinstatement premiums (1.0) (11.3) Prior year development 0.4 1.4 Prior year development (2.4) 2.5 Accident year loss ratio, as adjusted 57.3 56.4 Accident year loss ratio, as adjusted 59.6 58.2 Acquisition ratio 23.8 24.1 Acquisition ratio 19.3 21.7 General operating expense ratio 13.4 14.2 General operating expense ratio 13.7 13.9 Expense ratio 37.2 38.3 Expense ratio 33.0 35.6 Combined ratio 94.6 100.0 Combined ratio 96.0 102.6 Accident t year combined ratio, as adjusted 94.5 94.7 Accident year combined ratio, as adjusted 92.6 93.8 General Insurance - International - Personal Insurance Quarterly 1Q19 1Q20 Loss ratio Catastrophe losses and reinstatement premiums Prior year development Accident year loss ratio, as adjusted 52.4 56.9 (2.7) 2.8 0.6 55.2 54.8 Acquisition ratio 27.9 26.2 General operating expense ratio 13.2 14.5 Expense ratio 41.1 40.7 Combined ratio 93.5 97.6 Accident year combined ratio, as adjusted 96.3 95.5 AIG 37#38Non-GAAP Reconciliations Net Premiums Written - Change in Constant Dollar General Insurance 1Q20 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 AIG (in millions) Net investment income per Consolidated Statements of Operations Changes in fair value of securities used to hedge guaranteed living benefits Changes in the fair value of equity securities Net realized capital gains related to economic hedges and other Total Net investment income - APTI Basis International 1Q20 (1.5) % (0.4) (1.9) % (8.3) % (0.5) (8.8) % Quarterly 1Q19 1Q20 3,879 (105) $ 2,508 (13) (79) 191 23 13 E $ 3,718 $ 2,699 38#39Non-GAAP Reconciliations Premiums (in millions) Individual Retirement: Premiums Deposits Quarterly 1Q19 1Q20 $ 11 $ 41 4,175 3,078 Other Premiums and deposits $ 4,186 $ (3) 3,116 Individual Retirement (Fixed Annuities): Premiums $ EA 12 $ 35 Deposits 1,811 616 Other Premiums and deposits Individual Retirement (Variable Annuities): Premiums Deposits Other Premiums and deposits Individual Retirement (Index Annuities): (2) (4) $ 1,821 $ 647 $ EA (1) $ 6 557 853 2 $ 558 $ 859 Premiums Deposits $ $ 1,362 1,346 Other Premiums and deposits $ 1,362 $ 1,346 Individual Retirement (Retail Mutual Funds): Premiums EA $ $ Deposits 445 264 Other Premiums and deposits $ 445 $ 264 Group Retirement: Premiums $ 4 $ EA 6 Deposits Other 2,059 1,849 Premiums and deposits Life Insurance: $ 2,063 $ 1,855 Premiums $ 395 $ 419 Deposits 406 402 Other 194 194 Premiums and deposits $ 995 $ 1,015 Institutional Markets: Premiums EA $ 819 $ 757 Deposits 286 152 Other 7 8 Premiums and deposits $ 1,112 $ 917 Total Life and Retirement: Premiums $ 1,229 $ EA 1,223 AIG Deposits Other 6,926 5,481 201 199 Premiums and deposits $ 8.356 $ 6,903 39