American International : View our Q1 2021 Financial Supplement

American International Group, Inc.

Quarterly Financial Supplement

First Quarter 2021

All financial information in this document is unaudited. This supplement should be read in conjunction with AIG's Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, which will be filed with the Securities and Exchange Commission.

American International Group, Inc.

Contact: Investors

Sabra Purtill: [phone];[e-mail]

Shelley Singh: [phone];[e-mail]

Table of Contents	Page(s)
Consolidated Results
Cautionary Statement Regarding Forward-Looking Information	................................. 1	Investments ...................................................................................................................	43-62
Overview..........................................................................................................................	2
Non-GAAP Financial Measures..................................................................................	3-5	Supplemental Information..................................................................................................	63
Consolidated Financial Highlights ...............................................................................	6-8
Consolidated Statements of Operations ...........................................................................	9
Consolidated Balance Sheets .........................................................................................	10
Segment Balance Sheets ................................................................................................	11
Debt and Capital ...........................................................................................................	12
Consolidated Notes .....................................................................................................	13
Operating Results by Segment
General Insurance...................................................................................................	14-17
North America....................................................................................................	18-20
International .......................................................................................................	21-23
Global Commercial Lines Operating Statistics .......................................................	24
Global Personal Insurance Operating Statistics.......................................................	25
Notes .......................................................................................................................	26
Adverse Development Cover ...................................................................................	27
Life and Retirement .....................................................................................................	28
Individual Retirement.........................................................................................	29-32
Group Retirement..............................................................................................	33-35
Life Insurance.....................................................................................................	36-37
Institutional Markets ..........................................................................................	38-39
Notes .......................................................................................................................	40
Other Operations ........................................................................................................	41
Notes .......................................................................................................................	42

American International Group, Inc.

Cautionary Statement Regarding Forward-Looking Information

This Financial Supplement 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.

Forward-Looking Information 1

American International Group, Inc.

Overview

Segment Reporting

To align financial reporting with AIG's chief operating decision makers' view of AIG's businesses and how they allocate resources and assess performance, we present our segments as follows:

General Insurance

General Insurance continues to be reported with the following operating segments:

• North America - primarily includes insurance businesses in the United States, Canada and Bermuda, and our global reinsurance business, AIG Re.
• International - includes regional insurance businesses in Japan, the United Kingdom, Europe, Middle East and Africa (EMEA region), Asia Pacific, Latin America and Caribbean, and China. International also includes the results of Talbot Holdings, Ltd as well as AIG's global specialty business, which is now entirely reflected in International as part of the resegmentation effort.

Additionally, our chief operating decision makers determined the performance review of these operating segments to be based on the underwriting profit of the segments.

Life and Retirement

Life and Retirement continues to be reported with the following operating segments:

• Individual Retirement - consists of fixed annuities, fixed index annuities, variable annuities and retail mutual funds.
• Group Retirement - consists of group mutual funds, group annuities, individual annuity and investment products, financial planning and advisory services, and plan administrative and compliance services.
• Life Insurance - primary products in the U.S. include term life and universal life insurance. International operations include distribution of life and health products in the UK and Ireland. Certain run-off life insurance portfolios previously reported in our Legacy segment have been realigned into the Life Insurance operating segment.
• Institutional Markets - consists of stable value wrap products, structured settlement and pension risk transfer annuities, corporate- and bank-owned life insurance, high net worth products and guaranteed investment contracts (GICs).

On October 26, 2020, AIG announced its intention to separate its Life and Retirement business from AIG. Any separation transaction will be subject to the satisfaction of various conditions and approvals, including approval by the AIG Board of Directors, receipt of insurance and other required regulatory approvals, and satisfaction of any applicable requirements of the Securities and Exchange Commission. While we currently believe an initial public offering represents an optimal path, no assurance can be given regarding the form that a separation transaction may take or the specific terms or timing thereof, or that a separation will in fact occur.

Other Operations

Other Operations primarily consists of income from assets held by AIG Parent and other corporate subsidiaries, deferred tax assets related to tax attributes, corporate expenses and intercompany eliminations, our institutional asset management business and results of our consolidated investment entities, General Insurance portfolios in run-off previously reported within Legacy as well as the historical results of our legacy insurance lines ceded to Fortitude Re.

Overview2

American International Group, Inc.

Non-GAAP Financial Measures

Throughout this Financial Supplement, we present our financial condition and results of operations in the way we believe will be most meaningful and representative of our business results. Some of the measurements we use are ''Non-GAAP financial measures'' under Securities and Exchange Commission rules and regulations. GAAP is the acronym for generally accepted accounting principles in the United States. The non- GAAP financial measures we present may not be comparable to similarly-named measures reported by other companies.

We use the following operating performance measures because we believe they enhance the understanding of the underlying profitability of continuing operations and trends of our business segments. We believe they also allow for more meaningful comparisons with our insurance competitors. When we use these measures, reconciliations to the most comparable GAAP measure are provided on a consolidated basis.

Adjusted Pre-taxIncome (APTI) is derived by excluding the items set forth below from income from continuing operations before income tax. This definition is consistent across our segments. These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and measures that we believe to be common to the industry. APTI is a GAAP measure for our segments. Excluded items include the following:

• changes in fair value of securities used to hedge guaranteed living benefits;	• net loss reserve discount benefit (charge);
• changes in benefit reserves and deferred policy acquisition costs (DAC), value of business acquired	• pension expense related to a one-time lump sum payment to former employees;
(VOBA), and sales inducement assets (SIA) related to net realized capital gains and losses;	• income and loss from divested businesses;
• changes in the fair value of equity securities;	• non-operating litigation reserves and settlements;
• net investment income on Fortitude Re funds withheld assets held by AIG in support of Fortitude Re's	• restructuring and other costs related to initiatives designed to reduce operating expenses, improve
reinsurance obligations to AIG post deconsolidation of Fortitude Re (Fortitude Re funds withheld assets);	efficiency and simplify our organization;
• following deconsolidation of Fortitude Re, net realized capital gains and losses on Fortitude Re funds	• the portion of favorable or unfavorable prior year reserve development for which we have ceded the risk
withheld assets;	under retroactive reinsurance agreements and related changes in amortization of the deferred gain;
• loss (gain) on extinguishment of debt;	• integration and transaction costs associated with acquiring or divesting businesses;
• all net realized capital gains and losses except earned income (periodic settlements and changes in	• losses from the impairment of goodwill; and
settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset	• non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes
replication. Earned income on such economic hedges is reclassified from net realized capital gains and	or changes to accounting principles.
losses to specific APTI line items based on the economic risk being hedged (e.g. net investment income
and interest credited to policyholder account balances);
• income or loss from discontinued operations;

Adjusted After-taxIncome attributable to AIG common shareholders (AATI) is derived by excluding the tax effected adjusted pre-tax income (APTI) adjustments described above, dividends on preferred stock, and the following tax items from net income attributable to AIG:

• deferred income tax valuation allowance releases and charges;
• changes in uncertain tax positions and other tax items related to legacy matters having no relevance to our current businesses or operating performance; and
• net tax charge related to the enactment of the Tax Cuts and Jobs Act (Tax Act);

and by excluding the net realized capital gains (losses) and other charges from noncontrolling interests.

Book Value per Common Share, Excluding Accumulated Other Comprehensive Income (AOCI) adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets and Deferred Tax Assets (DTA) (Adjusted Book Value per Common Share) is used to show the amount of our net worth on a per-commonshare basis after eliminating items that can fluctuate significantly from period to period including changes in fair value of AIG's available for sale securities portfolio, foreign currency translation adjustments and U.S. tax attribute deferred tax assets. This measure also eliminates the asymmetrical impact resulting from changes in fair value of our available for sale securities portfolio wherein there is largely no offsetting impact for certain related insurance liabilities. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re. We exclude deferred tax assets representing U.S. tax attributes related to net operating loss carryforwards and foreign tax credits as they have not yet been utilized. Amounts for interim periods are estimates based on projections of full-yearattribute utilization. As net operating loss carryforwards and foreign tax credits are utilized, the portion of the DTA utilized is included in these book value per common share metrics. Adjusted Book Value per Common Share is derived by dividing Total AIG common shareholders' equity, excluding AOCI adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets, and DTA (Adjusted Common Shareholders' Equity), by total common shares outstanding. The reconciliation to book value per common share, the most comparable GAAP measure, is presented on page 65 herein.

Book Value per Common Share, Excluding Goodwill, Value of Business Acquired (VOBA), Value of Distribution Channel Acquired (VODA), Other Intangible Assets, AOCI adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets, and Deferred Tax Assets (DTA) (Adjusted Tangible Book Value per Common Share) is used to provide more accurate measure of the realizable value of shareholder on a per-commonshare basis. Adjusted Tangible Book Value per Common Share is derived by dividing Total AIG common shareholders' equity, excluding intangible assets, AOCI adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets, and DTA (Adjusted Tangible Common Shareholders' Equity), by total common shares outstanding. The reconciliation to book value per common share, the most comparable GAAP measure, is presented on page 65 herein.

Non-GAAP Financial Measures 3