AIG General Insurance and Life & Retirement Earnings slide image

AIG General Insurance and Life & Retirement Earnings

Non-GAAP Reconciliations Book Value Per Common Share (in millions, except per common share data) Book Value Per Common Share Total AIG shareholders' equity As of June 30, December 31, 2020 $ 62,234 $ Less: Preferred equity 485 2021 66,083 485 2020 $ 66,362 485 (in millions, except per common share data) Tangible Book Value Per Common Share Total AIG common shareholders' equity (a) Less Intangible Assets: As of June 30, December 31, 2020 2021 2020 $ 61,749 $ 65,598 $ 65,877 Total AIG common shareholders' equity (a) 61,749 65,598 65,877 Less: Accumulated other comprehensive income (AOCI) 9,169 10,209 13,511 Goodwill Value of business acquired 3,983 4,083 4,074 121 121 126 Add: Cumulative unrealized gains and losses related to Value of distribution channel acquired 517 477 497 Fortitude Re Funds Withheld Assets 4,215 3,341 4,657 Other intangibles 323 305 319 Less: Deferred tax assets (DTA)* 8,643 7,374 7,907 Total intangibles assets 4,944 4,986 5,016 Total adjusted common shareholders' equity (b) $ 48.152 $ 51.356 S 49.116 Less: Accumulated other comprehensive income (AOCI) 9,169 10,209 13,511 Total common shares outstanding (c) 861.4 854.9 861.6 Add: Cumulative unrealized gains and losses related to Fortitude Re Funds Withheld Assets 4,215 3,341 4,657 Book value per common share (a+c) $ 71.68 $ 76.73 $ 76.46 Less: Deferred tax assets (DTA)* 8,643 7,374 7,907 Adjusted book value per common share (b+c) 55.90 60.07 57.01 Total adjusted tangible common shareholders' equity (b) $. Total common shares outstanding (c) 43.208 $ 861.4 46.370 854.9 $ 44.100 861.6 Adjusted tangible book value per common share (b+c) 50.16 $ 54.24 $ 51.18 Return on Common Equity (in millions) Return On Common Equity Computations Quarterly Life and Retirement (in millions) Quarterly 2Q20 2Q21 Actual or Annualized net income (loss) attributable to AIG common shareholders (a) $ (31,744) $ 364 Adjusted pre-tax income $ 2Q20 895 2Q21 $ 1,124 Actual or Annualized adjusted after-tax income attributable to AIG common shareholders (b) Interest expense on attributed financial debt 68 $ Average AIG Common Shareholders' equity (c) $ 2,244 $ 60,719 $ Less: Average AOCI 4,088 5.324 63,896 8,338 Adjusted pre-tax income including attributed interest expense Income tax expense 827 74 1,050 165 211 Adjusted after-tax income $ 662 S 839 Add: Average cumulative unrealized gains and losses related to Fortitude Re funds withheld assets Dividends declared on preferred stock 2 2 2,108 2,794 Adjusted after-tax income attributable to common Less: Average DTA* 8,589 Average adjusted common shareholders' equity (d) 50,150 $ ROCE (a+c) Adjusted return on common equity (b÷d) NM** 4.5% 7,457 50.895 0.6% shareholders (a) $ 660 $ 837 Ending adjusted segment common equity $ 19,101 $ 20,689 Average adjusted segment common equity (b) 19,625 20,458 10.5% Return on adjusted segment common equity (a+b) 13.5 % 16.4 % Total segment shareholder's equity $ 26,712 $ 29,558 Less: Preferred equity 127 139 Total segment common equity 26,585 29,419 Less: Accumulated other comprehensive income (AOCI) Add: Cumulative unrealized gains and losses related to 11,332 11,860 Fortitude Re funds withheld assets Total adjusted segment common equity 3,848 3,130 $ 19.101 $ 20.689 * Represents deferred tax assets only related to U.S. net operating loss and foreign tax credit carryforwards on a U.S. GAAP basis and excludes other balance sheet deferred tax AIG assets and liabilities. 25
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