AMERICAN INTERNATIONAL GROUP INC

The following section provides a comparative discussion of our consolidated results of operations on a reported basis for the three and six months ended June 30, 2024 and 2023. Factors that relate primarily to a specific business are discussed in more detail within the business segment operations section.

For information regarding the critical accounting estimates that affect our results of operations, see Critical Accounting Estimates above and Part II, Item 7. MD&A – Critical Accounting Estimates in the 2023 Annual Report.

The following table presents our consolidated results of operations and other key financial metrics:

NET INCOME (LOSS) ATTRIBUTABLE TO AIG COMMON SHAREHOLDERS

Three Months Ended June 30, 2024 and 2023 Comparison

Net income (loss) attributable to AIG common shareholders decreased $5.5 billion due to the following:

•a decrease in Income (loss) from discontinued operations, net of income taxes of $5.2 billion primarily as a result of the loss on deconsolidation of Corebridge of $4.7 billion as well as the decline in Corebridge net income;

•a decrease in underwriting income in General Insurance of $164 million, reflecting lower net favorable prior year reserve development and higher catastrophe losses and partially offset by improvement in the accident year loss ratio, as adjusted, primarily driven by changes in business mix along with continued positive rate change, focused risk selection and improved terms and conditions;

•a decrease in Net realized gains excluding Fortitude Re funds withheld assets and embedded derivative of $122 million, driven by a $71 million decrease in foreign exchange gains and higher losses on sales of securities of $80 million, partially offset by derivative and hedge activity gains of $68 million;

•an increase in General operating and other expenses primarily due to a severance charge of $285 million and asset impairment of $53 million as a result of restructuring activities; and

•an increase in income tax expense of $97 million as a result of prior year discrete items partially offset by lower income from continuing operations.

The decrease in Net income (loss) attributable to AIG common shareholders was partially offset by the following, on a pre-tax basis:

•an increase in Net investment income of $153 million primarily driven by dividends received from Corebridge of $68 million and changes in its stock price of $65 million, an increase in the fair value of fixed maturity securities where we elected the fair value option of $16 million as a result of the higher interest rate environment and higher available for sale fixed maturity sales of $5 million, partially offset by a decrease in the fair value of equity securities of $45 million and lower returns on our alternative investments of $12 million; and

•a decrease in income attributable to noncontrolling interest of $105 million primarily driven by lower ownership interest in Corebridge.

Six Months Ended June 30, 2024 and 2023 Comparison

Net income (loss) attributable to AIG common shareholders decreased $4.3 billion due to the following:

•a decrease in Income (loss) from discontinued operations, net of income taxes of $4.0 billion primarily as a result of the loss on deconsolidation of Corebridge of $4.7 billion;

•an increase in income attributable to noncontrolling interest of $396 million primarily driven by increase in net income at Corebridge compared to 2023; and

•a decrease in underwriting income in General Insurance of $70 million, reflecting lower net favorable prior year reserve development partially offset by lower catastrophe losses and improvement in the accident year loss ratio, primarily driven by changes in business mix along with continued positive rate change, focused risk selection and improved terms and conditions;

•an increase in income tax expense $293 million as a result of prior year discrete items partially offset by lower income from continuing operations.

The decrease in Net income (loss) attributable to AIG common shareholders was partially offset by the following, on a pre-tax basis:

•an increase in Net investment income of $288 million primarily driven by dividends received from Corebridge of $68 million and changes in its stock price of $65 million, higher income on available for sale fixed maturity securities of $126 million, partially offset by lower returns on our alternative investments of $53 million;

•an increase in Net realized gains excluding Fortitude Re funds withheld assets and embedded derivative of $136 million, driven by a $146 million decrease in losses from sales of securities and a $44 million increase in derivative and hedge activity, partially offset by foreign exchange losses of $44 million; and

•an increase in Net realized gains on Fortitude Re funds withheld embedded derivative of $81 million driven by interest rate movement and higher Net realized losses on Fortitude Re funds withheld assets of $41 million.

INCOME TAX EXPENSE ANALYSIS

For the three months ended June 30, 2024 and 2023, the effective tax rate on income (loss) from continuing operations was 23.0 percent and 5.1 percent, respectively. For the six months ended June 30, 2024 and 2023, the effective tax rate on income (loss) from continuing operations was 24.1 percent and 8.5 percent, respectively.

For additional information, see Note 16 to the Condensed Consolidated Financial Statements.

NON-GAAP RECONCILIATIONS

The following tables present reconciliations of Book value per share to Adjusted book value per share, Tangible book value per share and Core operating book value per share, which are non-GAAP measures. For additional information, see Use of Non-GAAP Measures.

The following tables present reconciliations of Return on equity to Adjusted return on equity, Tangible return on equity and Core operating return on equity, which are non-GAAP measures. For additional information, see Use of Non-GAAP Measures.

The following table presents a reconciliation of revenues to adjusted revenues

(a)Includes all net realized 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.

(b)For additional information, see Note 1 to the Consolidated Financial Statements in the 2023 Annual Report.

The following table presents a reconciliation of pre-tax income (loss)/net income (loss) attributable to AIG to adjusted pre-tax income (loss)/adjusted after-tax income (loss) attributable to AIG:

(a)Includes all net realized 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.

(b)In the second quarter of 2024, Restructuring and other costs increased primarily as a result of employee-related costs, including severance, and real estate impairment charges.

(c)For additional information, see Note 1 to the Consolidated Financial Statements in the 2023 Annual Report.

(d)Noncontrolling interest primarily relates to Corebridge and is the portion of Corebridge earnings that AIG did not own. Corebridge is consolidated until June 9, 2024. The historical results of Corebridge owned by AIG are reflected in the Income (loss) from discontinued operations, net of income taxes.

PRE-TAX INCOME (LOSS) COMPARISON

Pre-tax income (loss) was $617 million and $886 million in the three months ended June 30, 2024 and 2023, respectively. Pre-tax income (loss) was $1.7 billion and $1.3 billion in the six months ended June 30, 2024 and 2023, respectively.

For the main drivers impacting AIG’s results of operations, see – Net Income (Loss) Attributable to AIG Common Shareholders above.

ADJUSTED PRE-TAX INCOME (LOSS) COMPARISON

Adjusted pre-tax income (loss) was $1.0 billion and $1.0 billion in the three months ended June 30, 2024 and 2023, respectively. Adjusted pre-tax income (loss) was $2.2 billion and $2.0 billion in the six months ended June 30, 2024 and 2023, respectively.

For the main drivers impacting AIG’s adjusted pre-tax income (loss), see Business Segment Operations.