General Insurance Financial Overview slide image

General Insurance Financial Overview

AIG finished the year with a strong Parent liquidity position of $10.7B, benefiting from sales proceeds on the closing of two transactions ■ Total debt & preferred stock leverage of 24.6%, a decrease 380 bps from prior year end ☐ Completed the sale of 9.9% equity stake in SAFG and certain affordable housing interests for total net proceeds to AIG Parent of approximately $6B 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) September 30, 2021 AOCI is computed as GAAP AOCI of $8.6B excluding $3.0B of cumulative unrealized gains and losses related to Fortitude Re funds withheld assets; December 31, 2021, AOCI is computed as GAAP AOCI of $6.7B excluding $2.8B of cumulative unrealized gains and losses related to Fortitude Re 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 Life Insurance Companies, which is Negative; Fitch Outlook: Stable, Non-Life and Life 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. AIG Copyright ® 2022 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG. Total Equity: $65.7 $88.3 $1.6 $21.0 Capital Structure ($B) $0.8 $5.6 $0.5 $7.1 $90.8 Hybrids¹ 1.2 Period Life and Retirement Companies Risk Based Capital (RBC) Ratios4 General Insurance Companies 1,2 $20.7 ■Financial Debt $3.0 Year-end 2020 433% (CAL) 460% (ACL) $3.9 $0.5 NCI AOCI³ 3 3Q21 443% (CAL) 458% (ACL) Preferred Equity Tax Attribute DTA Year-end 2021 Estimated 5 440%-450% (CAL) 460%-470% (ACL) Adjusted S/E $5.2 H $51.7 Total Equity:- $68.9 $56.4 Pending finalization of Statutory financials September 30, 2021 December 31, 2021 Capital Ratios Credit Ratings Dec. 31, 2020 Sept. 30, Dec. 31, 2021 S&P Moody's Fitch A.M. Best 2021 1.7% 1.8% 1.3% AIG - Senior Debt BBB+ Baa2 BBB+ NR Ratios: Hybrids / Total capital Financial debt / Total capital (incl. AOCI) 26.2% 23.8% 22.8% General A+ A2 A A Insurance - FSR Total hybrids & Financial debt / Total capital 27.9% 25.6% 24.1% Life and A+ A2 A+ A Preferred stock / Total capital (incl. AOCI) 0.5% 0.5% 0.5% Retirement - FSR Total debt & preferred stock/ Total capital (incl. AOCI) 28.4% 26.1% 24.6% Total debt & preferred stock/ Total capital (ex. AOCI)³* 31.4% 27.9% 25.8% 5
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