Investor Presentaiton
Non-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
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