AIG General Insurance and Life & Retirement Earnings
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
Quarterly
2Q20
2Q21
$
(7,766) $
150
(162)
(51)
$
(7,928) $
99
Dividends on preferred stock
8
8
Net income (loss) attributable to AIG common shareholders
$
(7,936) $
91
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
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 gains (losses)
Changes in the fair value of equity securities
Loss on extinguishment of debt
Net investment income on Fortitude Re funds withheld assets
Net realized gains on Fortitude Re funds withheld assets
Net realized losses on Fortitude Re funds withheld embedded
derivative
Net realized losses (a)(b)
Loss from discontinued operations and divested businesses (b)
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
Businesses
Restructuring and other costs
Non-recurring costs related to regulatory or accounting changes
Noncontrolling interests primarily related to net realized gains
of Fortitude Holdings' standalone results (c)
Adjusted after-tax income attributable to AIG common shareholders
Weighted average diluted shares outstanding (d)
Income (loss) per common share attributable to AIG common shareholders (diluted) (d)
Adjusted after-tax income per common share attributable to AIG common shareholders (diluted)
206
35
(183)
(25)
(12)
(11)
(202)
(95)
(44)
10
83
(92)
(400)
(76)
(136)
661
1,625
1,240
42
6,756
1
(26)
(51)
13
17
3
106
100
11
2870
17
136
$
561 $
1,331
867.0
872.9
$
(9.15) $
0.11
0.64
1.52
AIG
(a) 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.
(b) Includes the impact of non-U.S. tax rates which differ from the applicable U.S. statutory tax rate and tax-only adjustments.
(c) 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 June 30, 2021.
(d) Because we reported a net loss attributable to AIG common shareholders for the three months ended June 30, 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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