AMERICAN INTERNATIONAL GROUP, INC.

LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES (LOSS RESERVES)

The following table presents the components of our gross and net loss reserves by segment and major lines of business(a):

(a)Includes net loss reserve discount of $1.2 billion and $1.2 billion at September 30, 2026 and December 31, 2025, respectively. For information regarding loss reserve discount, see Note 11 to the Condensed Consolidated Financial Statements.

(b)Other product lines and Unallocated loss adjustment expenses include Gross liability for unpaid losses and loss adjustment expense and Reinsurance recoverable on unpaid losses and loss adjustment expense for the Fortitude Re reinsurance of $2.3 billion and $2.3 billion at September 30, 2026 and December 31, 2025, respectively.

Prior Year Development

The following table summarizes incurred (favorable) unfavorable prior year development net of reinsurance by segment and major lines of business:

*Includes the amortization attributed to the deferred gain at inception from the National Indemnity Company (NICO) adverse development reinsurance agreement of $26 million and $31 million for the three months ended September 30, 2026 and 2025, respectively, and $78 million and $93 million for the nine months ended September 30, 2026 and 2025, respectively.

Net Loss Development

In the three months ended September 30, 2026, we recognized favorable prior year loss reserve development of $111 million, primarily driven by:

•Favorable development in Other Product Lines, primarily driven by favorable development in Canadian Financial Lines and Property.

•Favorable development in European Financial Lines, partially offset by deteriorations in UK Professional Indemnity.

Global Personal

•Favorable reserve development in U.S. Personal Insurance driven by favorable experience on the high net worth business.

•Favorable development in Other Product Lines driven by several lines of business, including A&H in Asia Pacific and Personal Auto in Asia Pacific and Latin America and Caribbean.

In the nine months ended September 30, 2026, we recognized favorable prior year loss reserve development of $436 million, primarily driven by:

•Favorable development in U.S. Workers’ Compensation driven by Excess of Loss Sensitive and Primary business.

•Favorable development in U.S. Property and Special Risks primarily reflecting development in Programs, along with lower than expected non-catastrophe loss experience in Property Lines.

•Favorable development in U.S. Financial Lines reflecting favorable experience in Directors and Officers in more mature accident years.

•Favorable development in Other Product Lines, primarily driven by favorable development in Canadian Financial Lines and Property.

•Favorable development in European Financial Lines partially offset by deteriorations in UK Professional Indemnity.

•Favorable development in Other Product Lines primarily driven by Energy and Cargo.

•Adverse development in UK/Europe Property and Special Risks due to adverse development on prior year catastrophes and UK Marine, partially offset by favorable experience primarily concentrated in EMEA and UK Property.

Global Personal

•Favorable development in U.S. Personal Insurance attributable to favorable development on prior year catastrophes and favorable experience on the high net worth business.

•Favorable development in Other Product Lines driven by several lines of business, including A&H in Asia Pacific and Personal Auto in Asia Pacific and Latin America and Caribbean.

In the three months ended September 30, 2025, we recognized favorable prior year loss reserve development of $205 million, primarily driven by:

•Favorable development in Other Product Lines, reflecting experience in several lines, most notably short-tail Property.

•Favorable development in U.S. Property and Special Risks primarily driven by U.S. Property.

•Favorable development in U.S. Workers’ Compensation primarily related to loss sensitive business.

•Favorable development in Other Product Lines, primarily due to development in Global Specialty, notably within Energy and Trade Credit, as well as development in short-tail Property.

•Adverse development in UK/Europe Casualty and Financial Lines driven by UK Financial Lines, and EMEA Casualty, particularly within Auto and General Liability lines, partially offset by favorable development in EMEA Financial Lines.

In the nine months ended September 30, 2025, we recognized favorable prior year loss reserve development of $397 million, primarily driven by:

•Favorable development in U.S. Workers’ Compensation primarily driven by favorable experience within Excess of Loss Sensitive offset by adverse development within Primary Guaranteed Cost and Defense Base Act business.

•Favorable development in Other Product Lines, reflecting favorable experience in several lines, most notably short-tail Property.

•Favorable development in U.S. Property and Special Risks primarily driven by U.S. Property and Programs.

•Adverse development in U.S. Excess Casualty primarily driven by unfavorable development in Mass Tort.

•Favorable development in Other Product Lines, primarily due to development in Global Specialty, notably within Energy and Trade Credit, as well as development in short-tail Property.

•Adverse development in UK/Europe Casualty and Financial Lines driven by UK Financial Lines, and EMEA Casualty, particularly within Auto and General Liability lines, partially offset by favorable development in EMEA Financial Lines.

For certain categories of claims (e.g., construction defect claims and environmental claims) and for reinsurance recoverable, losses may sometimes be reclassified to an earlier or later accident year as more information about the date of occurrence becomes available to us.

Significant Reinsurance Agreements

NICO

In the first quarter of 2017, we entered into an adverse development reinsurance agreement with NICO, under which we transferred to NICO 80 percent of the reserve risk on substantially all of our U.S. Commercial long-tail exposures for accident years 2015 and prior. Under this agreement, we ceded to NICO 80 percent of the losses on subject business paid on or after January 1, 2016 in excess of $25 billion of net paid losses, up to an aggregate limit of $25 billion. We account for this transaction as retroactive reinsurance. This transaction resulted in a gain, which under GAAP retroactive reinsurance accounting is deferred and amortized into income over the settlement period. NICO created a collateral trust account as security for their claim payment obligations to us, into which they deposited the consideration paid under the agreement, and Berkshire Hathaway Inc. has provided a parental guarantee to secure NICO’s obligations under the agreement.

For a description of AIG’s catastrophe reinsurance protection for 2026, see Part II, Item 7. MD&A – Enterprise Risk Management – Insurance Risk – Natural Catastrophe Risk in the 2025 Annual Report.

The table below shows the calculation of the deferred gain on the adverse development reinsurance agreement, the effect of discounting of loss reserves and amortization of the deferred gain.

(a)The accretion of discount and a reduction in effective interest rates is offset by changes in estimates of the amount and timing of future recoveries.

(b)Excluded from APTI.

The following table presents the rollforward of activity in the deferred gain from the adverse development reinsurance agreement:

(a)Prior year reserve development ceded to NICO under the retroactive reinsurance agreement is deferred under GAAP.

(b)Represents amortization of the deferred gain recognized in APTI.

(c)Excluded from APTI.

The lines of business subject to this agreement include those with longer tails, which carry a higher degree of uncertainty. Since inception, there have been periods of both favorable and unfavorable prior year development. This agreement will continue to reduce the impact of volatility in the development on our ultimate loss estimates over time.

Fortitude Re

Fortitude Re was established during the first quarter of 2018 in a series of reinsurance transactions related to our run-off operations. Those reinsurance transactions were designed to consolidate most of our insurance run-off lines into a single legal entity. As of September 30, 2026, $3.0 billion of reserves related to business written by multiple wholly-owned AIG subsidiaries had been ceded to Fortitude Re under these reinsurance transactions.