General Insurance Financial Overview
Non-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 (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 DSI related to
net realized 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)
Net realized gains on Fortitude Re funds withheld assets(c)
Twelve Months Ended
Quarterly
December 31,
4Q20
4Q21
2020
2021
$
(16) $
4,106 $
(5,829) $
9,923
(37)
(360)
(115)
(535)
$
(53) $
3,746 $
(5,944) $
9,388
7
$
(60) $
7
3,739 $
29
(5,973) $
29
9,359
(336)
(97)
(132)
(998)
(157)
12
(65)
718
(13)
1
(32)
(48)
(171)
(18)
(9)
41
(171)
157
(158)
188
(2)
189
10
307
(378)
(381)
(832)
(264)
(369)
(365)
(1,557)
(792)
Net realized losses on Fortitude Re funds withheld embedded
derivative (c)
910
570
2,090
477
Net realized (gains) losses (d)(e)
1,141
(322)
75
Net (gain) loss on divestitures and (income) loss from discontinued operations (e)
(21)
(2,309)
6,911
(1,282)
(2,394)
Non-operating litigation reserves and settlements
(13)
13
(1)
(17)
2
Unfavorable (favorable) prior year development and related amortization
changes ceded under retroactive reinsurance agreements
(119)
11
(175)
(147)
Pension expense related to lump sum payments to former employees
Net loss reserve discount (benefit) charge
Integration and transaction costs associated with acquiring or divesting
Businesses
Restructuring and other costs
Non-recurring costs related to regulatory or accounting changes
375
(202)
407
(153)
6
27
88
Noncontrolling interests (f)
Adjusted after-tax income (loss) attributable to AIG common shareholders
Weighted average diluted shares outstanding (g)
4801
22
9
65
102
15
7
བྷཧ
344
342
51
53
(1)
827 $
$
868.4
(0.07) $
0.94
222
1,339 $
872.0
4.38 $
1.58
62
222
2,201 $
4,430
869.3
(6.88) $
2.52
864.9
10.82
5.12
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Income (loss) per common share attributable to AIG common shareholders (diluted) (g)
Adjusted after-tax income per common share attributable to AIG common shareholders (diluted) (g)
(a) The three months ended December 31, 2020 as well as twelve months ended December 31, 2021 and 2020 include the completion of audit activity by the Internal Revenue Service. Twelve months ended December 31, 2020 includes
the write-down of net operating loss deferred tax assets in certain foreign jurisdictions, which is offset by valuation allowance release.
(b) The three months ended December 31, 2020 as well as twelve months ended December 31, 2021 and 2020 include valuation allowance established against a portion of certain tax attribute carryforwards of AIG's U.S. federal
consolidated income tax group, as well as valuation allowance changes in certain foreign jurisdictions.
(c) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.
(d) Includes all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication 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) For the year ended December 31, 2021, noncontrolling interests include realized non-operating gains on consolidated investment entities. 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 gains and losses of Fortitude Holdings. In accordance with AIG's adjusted after-tax income definition, realized
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, 2021.
(g) For the three-month period ended December 31, 2021, an option for Blackstone to exchange all or a portion of its ownership interest in SAFG for AIG common shares was anti-dilutive and are therefore excluded from the calculation
of adjusted after-tax income per diluted share attributable to AIG common shareholders. Because we reported net losses 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 and diluted per share amounts.
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