AIG Earnings and Investment Portfolio Report
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 (b)
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 investment income on Fortitude Re funds withheld assets(c)
Twelve Months Ended
Quarterly
December 31,
4Q19
4Q20
2019
2020
EA
$
869 $
(16) $
4,169 $
60
(37)
(821)
(5,829)
(115)
$
EA
929 $
7
(53) $
7
3,348 $
(5,944)
$
922 $
(60) $
22
3,326 $
29
(5,973)
7
(336)
30
(132)
(3)
(157)
(43)
(65)
(9)
(13)
(154)
(32)
(75)
(171)
(44)
(9)
(120)
(171)
(125)
(158)
15
(2)
25
10
(378)
(832)
Net realized capital (gains) losses on Fortitude Re funds withheld assets(c)
(264)
(365)
Net realized capital (gains) losses on Fortitude Re funds withheld embedded
derivative (c)
910
2,090
Net realized capital (gains) losses (d)(e)
258
1,141
(357)
75
(Income) loss from discontinued operations and divested businesses (e)
Non-operating litigation reserves and settlements
14
(21)
18
6,911
(7)
(13)
(2)
(17)
Favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements
(45)
(119)
(211)
(175)
Net loss reserve discount charge
28
375
754
407
Integration and transaction costs associated with acquiring or divesting
businesses
6
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 (f)
Adjusted after-tax income attributable to AIG common shareholders
Weighted average diluted shares outstanding (g)
35
88
6
15
+85
4
19
9
172
344
10
51
(109)
(1)
660
62
$
923
$
827
$
4.078 $
2.201
896.4
868.4
889.5
869.3
Income (loss) per common share attributable to AIG common shareholders (diluted) (g)
$
1.03 $
1.03
(0.07) $
0.94
3.74 $
(6.88)
4.58
2.52
AIG
Adjusted after-tax income per common share attributable to AIG common shareholders (diluted)
(a) Includes the tax audit resolution related to the IRS audit settlement for tax years 1991-2006 and the write-down of net operating loss deferred tax assets in certain foreign jurisdictions, which is offset by valuation allowance release.
(b) Twelve months ended December 31, 2020 includes valuation allowance established against a portion of foreign tax credit carryforwards of AIG's U.S. federal consolidated income tax group, as well as net valuation allowance release in certain
foreign jurisdictions for the three- and twelve-months ended December 31, 2020.
(c) Represents activity subsequent to the deconsolidation of Fortitude Re on June 2, 2020.
(d) 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.
(e) Includes the impact of non-U.S. tax rates which differ from the applicable U.S. statutory tax rate and tax-only adjustments.
(f) Prior to June 2, 2020, noncontrolling interests was primarily due to the 19.9 percent investment in Fortitude 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 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 Holdings is carried at cost within AIG's Other invested assets, which was $100 million as of December 31, 2020.
(g) Because we reported a net loss attributable to AIG common shareholders for the three and twelve months ended December 31, 2020, all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares 35
and diluted per share amounts.View entire presentation