Investor Presentaiton
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 SIA related to
net realized capital gains (losses)
Changes in the fair value of equity securities
Loss (gain) on extinguishment of debt
Net realized capital (gains) losses (a)
(Income) loss from divested businesses
Non-operating litigation reserves and settlements
Unfavorable (favorable) prior year development and related amortization
changes ceded under retroactive reinsurance agreements
Net loss reserve discount (benefit) charge
Integration and transaction costs associated with acquired businesses
Restructuring and other costs
Professional fees related to regulatory or accounting changes
Adjusted pre-tax income (loss)
After-tax net income (loss), including noncontrolling interests
Noncontrolling interests (income) loss
Net income (loss) attributable to AIG
Twelve Months Ended
Quarterly
December 31,
4Q18
4Q19
2018
2019
$
(695) $
1,036 $
257 $
5,287
27
(11)
154
(194)
40
(95)
(152)
(3)
19
(195)
310
193
(3)
71
(11)
(8)
68
(56)
675
(66)
35
(371)
33
8
124
136
44
395
༄'gསྐྱེ° ིིདྨེཡྻ 8
(6)
(56)
(158)
7
32
(448)
(38)
75
19
(2)
(267)
955
24
218
7
12
S
(669)|$
1.208
S
1.409 S
5.478
S
(560) $
869 $
61 $
4,169
(62)
60
(67)
(821)
$
(622) $
929
$
(6) $
3,348
Dividends on preferred stock
7
22
Net income (loss) attributable to AIG common shareholders
$
(622) $
922
$
(6) $
3,326
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
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 (gain) on extinguishment of debt
Net realized capital (gains) losses (a)(b)
(139)
(Income) loss from discontinued operations and divested businesses (b)
Non-operating litigation reserves and settlements
Unfavorable (favorable) prior year development and related amortization
རྨེསྶ 'ཁྱེ@ @⪜
(3)
(9)
(75)
(120)
(2)
15
254
152
(1)
14
(7)
(51)
107
35
312
18636
(45)
533
28
(292)
ཝཱངཊྛི ' ཡ-ཋ སྣ ུ
(3)
(351)
ནིཏྟཱ ཙྩུཀྑུདྨེཝཔེ ངྑྱེཡྻgཋ
(5)
(21)
73)(9)
AIG
changes ceded under retroactive reinsurance agreements
Net loss reserve discount (benefit) charge
Integration and transaction costs associated with acquired businesses
Restructuring and other costs
Professional fees related to regulatory or accounting changes
Noncontrolling interests primarily related to net realized capital gains (losses)
of Fortitude Holdings' standalone results (c)
Adjusted after-tax income (loss) attributable to AIG common shareholders
Weighted average diluted shares outstanding (d)
-
48
(559) $
(109)
919 S
46
660
1.064 $
4.084
887.5
$
(0.70) $
(0.63)
896.4
1.03 $
1.03
910.1
889.5
(0.01) $
1.17
3.74
4.59
Income (loss) per common share attributable to AIG common shareholders (diluted)
Adjusted after-tax income (loss) per common share attributable to AIG common shareholders (diluted)
(a) 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.
(b) Includes the impact of non-U.S. tax rates which differ from the applicable U.S. statutory tax rate and tax only adjustments.
(c) Noncontrolling interests is 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 is allocated 19.9 percent of Fortitude Holdings' standalone financial results. Fortitude Holdings' results are mostly eliminated in AIG's consolidated income from continuing operations given that its results arise from
intercompany transactions. Noncontrolling interests is calculated based on the standalone financial results of Fortitude Holdings. The most significant component of Fortitude Holdings' standalone results includes the change in
fair value of the embedded derivatives, which moved materially in the year due to lower rates and tightening credit spreads in the first nine months of 2019, but reversed trend in the fourth quarter of 2019, and which are 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.
(d) For the three-month period ended December 31, 2018, because we reported a net loss and an adjusted after-tax loss attributable to AIG common shareholders from continuing operations, 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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