American International : View our Q1 2021 Financial Results Presentation

First Quarter 2021

Financial Results Presentation

May 7, 2021

Cautionary Statement Regarding Forward-Looking Information, Comment on Regulation G and Other Information

This document and the remarks made within this presentation may include, and officers and representatives of American International Group, Inc. (AIG) may from time to time make and discuss, projections, goals, assumptions and statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.These projections, goals, assumptions and statements are not historical facts but instead represent only a belief regarding future events, many of which, by their nature, are inherently uncertain and outside AIG's control. These projections, goals, assumptions and statements include statements preceded by, followed by or including words such as "will," "believe," "anticipate," "expect," "intend," "plan," "focused on achieving," "view," "target," "goal" or "estimate." These projections, goals, assumptions and statements may relate to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, anticipated organizational, business or regulatory changes, the effect of catastrophes, such as the COVID-19 crisis, and macroeconomic events, anticipated dispositions, monetization and/or acquisitions of businesses or assets, or successful integration of acquired businesses, management succession and retention plans, exposure to risk, trends in operations and financial results. It is possible that AIG's actual results and financial condition will differ, possibly materially, from the results and financial condition indicated in these projections, goals, assumptions and statements. Factors that could cause AIG's actual results to differ, possibly materially, from those in the specific projections, goals, assumptions and statements include: changes in market and industry conditions, including the significant global economic downturn, volatility in financial and capital markets, fluctuations in interest rates, prolonged economic recovery and disruptions to AIG's operations driven by COVID-19 and responses thereto, including new or changed governmental policy and regulatory actions; the occurrence of catastrophic events, both natural and man-made, including COVID-19, other pandemics, civil unrest and the effects of climate change; AIG's ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired businesses, including any separation of the Life and Retirement business from AIG and the impact any separation may have on AIG, its businesses, employees, contracts and customers; the adverse impact of COVID-19, including with respect to AIG's business, financial condition and results of operations; AIG's ability to effectively execute on AIG 200 transformational programs designed to achieve underwriting excellence, modernization of AIG's operating infrastructure, enhanced user and customer experiences and unification of AIG; the impact of potential information technology, cybersecurity or data security breaches, including as a result of cyber-attacks or security vulnerabilities, the likelihood of which may increase due to extended remote business operations as a result of COVID-19;disruptions in the availability of AIG's electronic data systems or those of third parties; changes to the valuation of AIG's investments; changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill; availability and affordability of reinsurance; the effectiveness of our risk management policies and procedures, including with respect to our business continuity and disaster recovery plans; nonperformance or defaults by counterparties, including Fortitude Reinsurance Company Ltd. (Fortitude Re); changes in judgments concerning potential cost-saving opportunities; concentrations in AIG's investment portfolios; changes to our sources of or access to liquidity; actions by rating agencies with respect to our credit and financial strength ratings; changes in judgments or assumptions concerning insurance underwriting and insurance liabilities; the effectiveness of strategies to recruit and retain key personnel and to implement effective succession plans; the requirements, which may change from time to time, of the global regulatory framework to which AIG is subject; significant legal, regulatory or governmental proceedings; and such other factors discussed in Part I, Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) in AIG's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021 (which will be filed with the Securities and Exchange Commission), and Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A in AIG's Annual Report on Form 10-K for the year ended December 31, 2020.

AIG is not under any obligation (and expressly disclaims any obligation) to update or alter any projections, goals, assumptions or other statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise.

On October 26, 2020, AIG announced its intention to separate the Life and Retirement business from AIG. This document and the remarks made within this presentation are not an offer to sell, or a solicitation of an offer to buy any securities.

This document and the remarks made orally may also contain certain financial measures not calculated in accordance with generally accepted accounting principles (non-GAAP). The reconciliation of such measures to the most comparable GAAP measures in accordance with Regulation G is included in the earnings release and First Quarter 2021 Financial Supplement available in the Investor Information section of AIG's corporate website, www.aig.com, as well as in the Appendix to this presentation.

Note: Amounts presented may not foot due to rounding.

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1Q21 APTI reflects continued improvement in General Insurance accident year, as adjusted*, underwriting profitability and strong Life and Retirement APTI

1Q21

Financial Results

General Insurance

Life and

Retirement

Capital

Management

• Adjusted after-tax income attributable to AIG common shareholders (AATI)* of $923M ($1.05/diluted share) and adjusted pre-tax income (APTI)* of $1.3B reflecting:
• • A 69% increase in General Insurance APTI reflecting a 92.4 accident year combined ratio (AYCR), as adjusted*, which improved 3.1 pts driven by Global Commercial Lines and International Personal Insurance, and 7.3 pts of catastrophe losses, net of reinsurance (CATs), or $422M, primarily from winter storms
  • A 57% increase in Life and Retirement APTI due to higher net investment income (NII), APTI basis, which contributed to increased APTI in Individual and Group Retirement and Institutional Markets; Life Insurance was impacted by elevated mortality primarily from COVID-19, and
  • An increase of 18% in NII, APTI basis*, to $3.2B compared to 1Q20; excluding the impact of Fortitude Group Holdings, LLC (Fortitude) in 1Q20, NII, APTI basis, increased 24%, or $611M, reflecting higher private equity returns and positive hedge fund income
• Net income attributable to AIG common shareholders of $3.9B ($4.41/diluted share) reflecting $923M of AATI and $2.4B of net realized capital gains related to the Fortitude embedded derivative
• Return on common equity (ROCE) and Adjusted ROCE* were 24.2% and 7.4%, respectively, on an annualized basis for 1Q21
• Book value per common share was $72.37, a decrease of 5.3% from December 31, 2020, due to the impact of higher interest rates on accumulated other comprehensive income (AOCI) during 1Q21; Adjusted book value per common share* was $58.69, an increase of 2.9% from December 31, 2020
• Net premiums written (NPW) increased by 9% from 1Q20 driven by 25% growth in Global Commercial Lines (22% on a constant dollar basis)
• AYCR, as adjusted, of 92.4, a 3.1 pt improvement from 1Q20; the 59.2 accident year loss ratio (AYLR), as adjusted* and 33.2 expense ratio improved 1.6 pts and 1.5 pts, respectively
• • Commercial Lines continued to show strong improvement in both North America (NA) (AYCR, as adjusted, down 3.7 pts) and International (AYCR, as adjusted, down 4.9 pts) due to improved business mix along with rate increases
  • International Personal Insurance AYCR, as adjusted, was down 1.5 pts due to improved attritional losses and expense discipline
  • NA Personal Insurance AYCR, as adjusted, increased 7.9 pts to 105.9 compared to the prior year quarter due to the impact of COVID-19, most notably on the Travel business, and changes in business mix driven by the combined impact of the creation of Syndicate 2019 and cessions placed on AIG's Private Client Group (PCG) business, which occurred in 2Q20
• 1Q21 APTI of $941M and annualized return on adjusted segment common equity* of 14.2% both reflect the impact of favorable capital markets conditions on NII, APTI basis, Variable Annuity deferred acquisition cost (DAC) and sales inducement assets (SIA) amortization, net of fee income and changes in reserves, partially offset by elevated mortality in Life Insurance, principally due to COVID-19
• On October 26, 2020, AIG announced its intention to separate the Life and Retirement business from AIG. Refer to page 10 for further discussion on the announced separation
• $7.9B AIG Parent liquidity at March 31, 2021, down from $10.5B at December 31, 2020, principally due to debt repayment, share repurchases and shareholder dividends
• Total debt and preferred stock leverage of 28.4%; excluding AOCI, adjusted for the cumulative unrealized gains and losses related to Fortitude's funds withheld assets, total debt and preferred stock leverage was 29.7% at March 31, 2021
• Repurchased $362M of AIG Common Stock (~8M shares); as of May 6, 2021, $1.1B remained under the share repurchase authorization

* 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	3
Non-GAAP Reconciliations.

APTI of $1.3B reflects higher NII, APTI basis, continued improvement in Commercial Lines AYCR, as adjusted, and strong Life and Retirement results

($M, except per common share amounts)	1Q20	1Q21	Variances
Adjusted Pre-tax Income (Loss):
General Insurance	$501	$845	$344
Life and Retirement	601	941	340
Other Operations1	(922)	(530)	392
Total adjusted pre-tax income	$180	1,256	$1,076
AATI attributable to AIG common shareholders	$105	923	818
AATI* per diluted share attributable to AIG	$0.12	$1.05	$0.93
common shareholders
Net income attributable to AIG common	$1,742	$3,869	$2,127
shareholders
Consolidated adjusted ROCE	0.8%	7.4%	6.6 pts
General Insurance Underwriting Ratios:			B/(W)
Loss ratio	66.8%	65.6%	1.2 pts
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums	(6.9%)	(7.3%)	(0.4) pts
Prior year development	0.9%	0.9%	0.0 pts
Accident year loss ratio, as adjusted	60.8%	59.2%	1.6 pts
Expense ratio	34.7%	33.2%	1.5 pts
Combined ratio	101.5%	98.8%	2.7 pts
Accident year combined ratio, as adjusted	95.5%	92.4%	3.1 pts

Key Takeaways

• General Insurance APTI increased by $344M primarily due to a $160M increase in underwriting income, reflecting an improved AYCR, as adjusted, of 3.1 pts and a $184M increase in NII, APTI basis, from higher alternative investment income
• Life and Retirement APTI increased $340M reflecting higher NII, APTI basis, across all businesses, driven by private equity returns, which are reported on a one quarter lag, and call and tender income and fair value option (FVO) bond income due to lower interest rates and tighter credit spreads. Group Retirement and Individual Retirement APTI benefited from lower Variable Annuity DAC/SIA amortization, net of fee income and changes in reserves, partially offset by base spread compression. Life Insurance had an adjusted pre-tax loss (APTL) of $40M reflecting elevated mortality principally due to COVID-19
• Other Operations APTL was $530M, including $176M of reductions from consolidation and eliminations, compared to APTL of $922M, including $87M of reductions from consolidation and eliminations, in the prior year quarter. The increase in consolidation and eliminations APTL reflects the impact of consolidated investment entities (CIE). Before consolidation and eliminations, the decrease in APTL primarily reflects the impact of Fortitude, which was sold and deconsolidated in 2Q20, and had an APTL of $317M in 1Q20

1) Other Operations is primarily comprised of corporate, our institutional asset management business and consolidation and eliminations.

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1Q20 and 1Q21 noteworthy items

	1Q20 - Income / (Loss)	1Q21 - Income / (Loss)
($M, except per share amounts)	Pre-tax	After-tax1	EPS -	Pre-taxAfter-tax1	EPS -
diluted2	diluted2

CATs excluding General Insurance COVID-193

General Insurance COVID-19 CATs

Favorable prior year development (PYD)4

Investment performance:

Better/(worse) than expected alternative investment returns - consolidated5,6

(Worse) than expected fair value changes on fixed maturity securities - other accounted under FVO5

($147)	($116)	($0.13)	($441)	($348)	($0.40)
(272)	(215)	($0.24)	-	-	-
60	47	0.05	37	29	0.03
(186)	(147)	(0.17)	451	356	0.41
(321)	(254)	(0.29)	(67)	(53)	(0.06)

Total noteworthy items - APTI basis	($866)	($684)	($0.78)	($20)	($16)	($0.02)

1. Computed using a U.S. statutory tax rate of 21%.
2. Computed using weighted average diluted shares on an operating basis, which is provided on page 6 of the 1Q21 Financial Supplement.
3. 1Q21 includes $422M of CATs in General Insurance and $19M of CATs in Other Operations related to Blackboard, pre-tax.
4. 1Q21 includes $56M of favorable PYD in General Insurance and $19M of unfavorable PYD in Other Operations primarily related to Blackboard, pre-tax.

5)	The annualized expected rate of return for both 1Q20 and 1Q21 is 6% for alternative investments and 4% for FVO fixed maturity securities, respectively.	5
6)	Presented on a consolidated AIG basis, which consists of GI, L&R and Other Operations, including consolidation and eliminations.