Investor Presentaiton
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 (loss) (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
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 on extinguishment of debt
Net investment income on Fortitude Re funds withheld assets(b)
Net realized capital (gains) losses on Fortitude Re funds withheld assets(b)
Net realized capital (gains) losses on Fortitude Re funds withheld embedded derivative(b)
Net realized capital (gains) losses (c)(d)
Loss from discontinued operations and divested businesses (d)
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
Non-recurring costs related to regulatory or accounting changes
Noncontrolling interests primarily related to net realized capital gains (losses)
of Fortitude Holdings' standalone results (e)
Adjusted after-tax income attributable to AIG common shareholders
Weighted average diluted shares outstanding (f)
Income (loss) per common share attributable to AIG common shareholders (diluted) (f)
Adjusted after-tax income per common share attributable to AIG common shareholders (diluted)
(a) Includes the write-down of net operating loss deferred tax assets in certain foreign jurisdictions, which is offset by valuation allowance release.
(b) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.
Quarterly
2Q19
2Q20
$
1,390 $
(7,766)
(281)
(162)
$
1,109
$
(7,928)
7
8
$
1,102
$
(7,936)
27
206
7
(183)
(59)
(12)
57
(202)
17
(44)
11
(92)
(76)
661
(265)
1,250
2
6,756
1
(98)
(26)
167
13
5
3.
47
106
2
11
249
136
$
1.272
$
571
888.3
867.0
$
1.24
$
(9.15)
1.43
0.66
AIG
(c) 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 and net realized
gains and losses on Fortitude Re funds withheld assets.
(d) Includes the impact of non-U.S. tax rates which differ from the applicable U.S. statutory tax rate and tax-only adjustments.
(e) Noncontrolling interests was 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 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 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. Subsequent to the Majority Interest Fortitude Sale, AIG's 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 is carried at cost within AIG's consolidated investments, which was $100 million as of June 30, 2020.
(f) 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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