General Insurance Financial Overview slide image

General Insurance Financial Overview

Non-GAAP Reconciliations- Adjusted Pre-tax and After-tax Income - Consolidated (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 DSI related to net realized gains (losses) Twelve Months Ended Quarterly December 31, 4Q20 4Q21 2020 2021 ՄԴ $ (558) $ 5,048 $ (7,293) $ 12,099 (17) (41) (61) (217) (22) (12) 52 Changes in the fair value of equity securities Loss (gain) on extinguishment of debt Net investment income on Fortitude Re funds withheld assets (a) Net realized gains on Fortitude Re funds withheld assets (a) (216) 201 (200) 237 (3) 240 12 389 (479) (483) (335) (467) (1,053) (463) (1,971) (1,003) Net realized losses on Fortitude Re funds withheld embedded derivative (a) 1,152 720 2,645 603 Net realized (gains) losses (b) 1,472 (403) 97 Net (gain) loss on divestitures (127) (2,936) 8,525 (1,623) (3,044) Non-operating litigation reserves and settlements (16) (21) 3 Unfavorable (favorable) prior year development and related amortization changes ceded under retroactive reinsurance agreements (150) 13 (221) (186) Net loss reserve discount (benefit) charge 475 (255) 516 (193) Pension expense related to lump sum payments to former employees Integration and transaction costs associated with acquiring or divesting businesses 7 34 Restructuring and other costs Non-recurring costs related to regulatory or accounting changes Adjusted pre-tax income 5 111 19 28 12 83 129 435 433 10 65 $ 1,116 $ 1,830 $ 3,003 $ 68 5,920 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. (a) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020. (b) 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. 32
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