AIG Earnings and Investment Portfolio Report slide image

AIG Earnings and Investment Portfolio Report

Gross investment income (GII), APTI basis¹*, decreased $186M reflecting the June 2020 sale of Fortitude; Excluding Fortitude from 4Q19, GII, APTI basis, increased $324M reflecting higher private equity and hedge fund returns Invested Assets & Gross Investment Income, APTI Basis¹ 4Q20 Invested Assets Gross Investment Income, APTI basis¹ ($M) $B Fixed Maturities Alternatives All Other $124 ■Interest & dividends 4Q19 $680 $14 $818 General $75.9 $5.3 $2.8 Insurance 4Q20 $553 $452 $34 $1,039 4Q19 $2,060 Life & $100 $67 $2,227 Alternative investments ■All other $187.3 $3.9 $4.4 Retirement 4Q20 $2,063 $293 $79 $2,435 4Q19 $547 $64 $116 $727 Other $10.1 ($1.2) $7.4 Consolidation and eliminations and other adjustments Operations¹ $110 4Q20 $46 $32 $188 4Q19 ($209) $3,287 $288 $197 $3,563 Total AIG $273.3 $8.0 $14.6 4Q20 ($285) $2,662 $855 $145 $3,377 3.72% 2.91% 4Q20 and 4Q19 Annualized Investment Yields Fixed Maturities² Alternative Investments³ 4.70% 4.41% 4.49% Total Alternative Investments 3.89% Consolidated AIG Hedge Funds & Private Equity 45.34% 46.54% 35.33% 31.60% 15.39% 8.90% General Insurance Life & Retirement Consolidated AIG 4Q19 4Q20 AIG 13.26% 3.92% General Insurance Life & Retirement Consolidated AIG Hedge Funds 4Q19 ■4Q20 6.12% 27.12% Private Equity * Refers to financial measure not calculated in accordance with generally accepted accounting principles (Non-GAAP); definitions and abbreviations of Non-GAAP measures and reconciliations to their closest GAAP measures can be found in this presentation under the heading Glossary of Non-GAAP Financial Measures and Non-GAAP Reconciliations. 1) 4Q19 includes GII of $510M ($498M on a net basis) related to investment income on Fortitude assets. Excluding Fortitude, 4Q19 GII, APTI basis, is $3,053M and NII, APTI basis, is $2,964M. 2) Interest and dividends include amounts related to commercial mortgage loan prepayments and call and tender income; Life and Retirement annualized yields include yield on collateral related to hedging program. 3) Alternative investment income includes income on hedge funds, private equity funds and affordable housing partnerships. 7
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