AIG Earnings and Investment Portfolio Report
Non-GAAP Reconciliations
Adjusted Pre-tax and After-tax Income - Consolidated
Twelve Months Ended
(in millions)
Pre-tax income (loss) from continuing operations
Adjustments to arrive at Adjusted pre-tax income (loss)
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
Quarterly
December 31,
4Q19
4Q20
2019
2020
$
1,036 $
(558) $
5,287 $
(7,293)
(11)
(17)
(194)
(41)
(95)
(217)
(56)
(12)
(152)
(216)
(158)
(200)
Loss (gain) on extinguishment of debt
19
(3)
32
12
Net investment income on Fortitude Re funds withheld assets (a)
(479)
(1,053)
Net realized capital (gains) losses on Fortitude Re funds withheld assets (a)
(335)
(463)
Net realized capital (gains) losses on Fortitude Re funds withheld
businesses
embedded derivative (a)
Net realized capital (gains) losses (b)
(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 acquiring or divesting
Restructuring and other costs
Non-recurring costs related to regulatory or accounting changes
Adjusted pre-tax income
1,152
2,645
313
1,472
(456)
97
71
(127)
75
8,525
(8)
(16)
(2)
(21)
(56)
(150)
(267)
(221)
35
475
955
516
8
5
24
12
44
111
7
19
218
12
435
65
$
1.211 S
1.116 $
5.470 S
3.003
AIG
(a) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.
(b) 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.
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