Fourth Quarter and Full Year 2022 Financial Results Presentation February 16, 2023 Copyright ® 2023 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG. Certain statements in this presentation and other publicly available documents may include, and members of AIG management mayfrom time to time make and discuss, Cautionary Statement statements which, to the extent they are not statements of historical or ...

Financial Data and Key Metrics Changes - Adjusted after-tax income for Q4 2022 was $1 billion, or $1.36 per diluted share, with full year adjusted after-tax income reaching $3.6 billion, or $4.55 per diluted share, down from $4.4 billion in 2021 [8][48] - The company repurchased approximately $780 million of common stock and redeemed $1.8 billion of debt in Q4 2022, returning $6.1 billion to shareholders for the full year [8][49] - Adjusted return on common equity (ROCE) was 6.5% for the full year 2022, down from 8.6% in 2021, primarily due to lower alternative investment income [48][50] Business Line Data and Key Metrics Changes - General Insurance achieved underwriting income of $2 billion in 2022, with a combined ratio of 88.7%, an improvement of 230 basis points year-over-year [14][20] - Global Commercial reported a combined ratio of 84.5%, improving by 460 basis points year-over-year, while Global Personal's combined ratio deteriorated to 99.2% [20][48] - Net premiums written in General Insurance grew 4% on an FX-adjusted basis, driven by 6% growth in Global Commercial [19] Market Data and Key Metrics Changes - The company experienced significant rate increases in the commercial insurance market, with U.S. Property CAT rates increasing between 30% and 100% [33] - International commercial rate increases were 4%, driven by Asia Pacific at 9% and EMEA at 7% [10] - The reinsurance market faced challenges due to over $130 billion in insured natural catastrophe losses in 2022, impacting supply and pricing dynamics [22][23] Company Strategy and Development Direction - The company aims to achieve a 10% or greater ROCE by focusing on underwriting results, expense savings, and capital management [50] - AIG plans to invest in growth areas such as Lexington and Global Specialty, with expectations of continued rate momentum [31][32] - The company is also focused on completing the operational separation of Corebridge and exploring secondary offerings to enhance capital management [37][49] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenging conditions in the equity markets and insurance industry throughout 2022, but expressed optimism about the company's positioning for 2023 [6][39] - The company anticipates continued pressure in the reinsurance market but believes it is well-positioned to capitalize on opportunities due to its improved portfolio quality [25][30] - Management emphasized the importance of maintaining expense discipline and achieving operational efficiencies to support future growth [37][51] Other Important Information - The company completed the IPO of Corebridge in September 2022, marking it as the largest financial services IPO since 2020 [12] - AIG's investment management strategy has been restructured through partnerships with Blackstone and BlackRock, which are expected to yield benefits [13] - The company plans to launch a new Managing General Agency in partnership with Stone Point Capital to enhance its Private Client Group offerings [36] Q&A Session Summary Question: What is the starting point for the double-digit ROE target excluding Life and Retirement contributions? - Management indicated that achieving the 10% ROE target involves improving underwriting results, expense savings, and capital management, estimating a 300 to 350 basis point target for these components [54] Question: What are the expectations for loss trend assumptions and pricing in the first quarter? - Management confirmed that the loss cost assumption remains at 6.5%, with expectations that pricing will improve above loss trends in the first quarter [55][56] Question: How is the company managing its facultative reinsurance and commercial lines? - Management stated that while facultative reinsurance is used in certain segments, the focus is primarily on core treaty structures, which have been effectively managed to respond to market conditions [64][66]

Part I [Business](index=4&type=section&id=ITEM%201%20%7C%20Business) AIG is a global insurance organization providing property casualty, life, and retirement solutions across 70 countries, operating through General Insurance, Life and Retirement, and Other Operations segments - AIG is a leading global insurance organization providing property casualty insurance, life insurance, retirement solutions, and other financial services to customers in approximately **70 countries and jurisdictions**[5](index=5&type=chunk) 2022 Performance Highlights | Category | Detail | | :--- | :--- | | **Strategic Initiatives** | Completed the IPO of Corebridge Financial, Inc., the largest U.S. IPO in 2022. Achieved the **$1 billion** exit run-rate savings goal from the AIG 200 program six months ahead of schedule | | **Capital Management** | Reduced general borrowings by **$9.4 billion**, repurchased **$5.1 billion** of AIG Common Stock, and paid **$1.0 billion** in dividends | | **General Insurance Performance** | Achieved **$2.0 billion** in underwriting income, a **94% year-over-year increase**. The 2022 combined ratio was **91.9**, an improvement from **95.8 in 2021** | - AIG reports its business through three segments: General Insurance, Life and Retirement, and Other Operations[10](index=10&type=chunk) - As of December 31, 2022, AIG had approximately **26,200 employees**, with **34% in North America**, **43% in the Asia Pacific region**, and **23% in EMEA and Latin America**[15](index=15&type=chunk) [Regulation](index=9&type=section&id=Regulation) AIG's insurance subsidiaries are extensively regulated across jurisdictions, primarily for policyholder protection, covering financial condition, market conduct, and corporate governance - AIG's (re)insurance subsidiaries are subject to extensive regulation and supervision, which primarily relates to financial condition, corporate conduct, and market conduct activities for the protection of policyholders[19](index=19&type=chunk)[20](index=20&type=chunk) - In the U.S., the New York State Department of Financial Services (NYDFS) is AIG's lead state regulator and leads the Supervisory College meetings of AIG's key global regulatory bodies[23](index=23&type=chunk) - AIG is subject to various data privacy and cybersecurity laws, including the NAIC Insurance Data Security Model Law, NYDFS cybersecurity regulations, California's CCPA/CPRA, and the EU's GDPR, which impose significant obligations for protecting personal information and reporting data breaches[31](index=31&type=chunk)[32](index=32&type=chunk) - Regulators are increasing scrutiny on climate change and other ESG issues, with proposed SEC rule changes requiring extensive climate-related disclosures in periodic reports[34](index=34&type=chunk) [Risk Factors](index=17&type=section&id=ITEM%201A%20%7C%20Risk%20Factors) AIG faces diverse material risks, including economic deterioration, geopolitical tensions, interest rate fluctuations, insurance reserve adequacy, catastrophic events, investment portfolio concentrations, liquidity constraints, operational challenges, and regulatory changes [Market Conditions](index=17&type=section&id=Market%20Conditions) AIG's business is highly sensitive to global economic and market conditions, where deterioration, geopolitical tensions, or interest rate fluctuations can significantly impact profitability and asset valuations - Deterioration of economic conditions, geopolitical tensions, and market volatility may materially affect AIG's business by causing a poor operating environment, reduced business volumes, and declines in asset valuations[47](index=47&type=chunk)[57](index=57&type=chunk) - Changes in interest rates have materially and adversely affected profitability, with rising rates decreasing fixed-income portfolio fair value and increasing policy surrenders, while sustained low rates negatively affect investment performance and compress spreads[47](index=47&type=chunk)[58](index=58&type=chunk) [Reserves and Exposures](index=17&type=section&id=Reserves%20and%20Exposures) AIG faces significant uncertainty in estimating insurance claims, potential reinsurance unavailability or credit risk, and substantial exposure to catastrophic events, including those exacerbated by climate change - Estimating insurance and reinsurance liability claims is difficult, and claims may exceed established reserves, especially for long-tail liability lines of business[48](index=48&type=chunk)[61](index=61&type=chunk) - Reinsurance may be unavailable or too expensive, and AIG is exposed to credit risk if reinsurers fail to make timely payments, with limited availability of terrorism reinsurance[48](index=48&type=chunk)[62](index=62&type=chunk) - Climate change may adversely affect AIG's business by increasing the frequency and severity of natural disasters, impacting underwriting models, and affecting the value of its investment portfolio[48](index=48&type=chunk)[65](index=65&type=chunk) - AIG has significant exposure to Fortitude Re, which reinsured approximately **$29.0 billion** of Life and Retirement reserves and **$3.2 billion** of General Insurance reserves, where failure to perform could materially impact AIG's results[48](index=48&type=chunk)[67](index=67&type=chunk) [Business and Operations](index=18&type=section&id=Business%20and%20Operations) AIG's operational risks include the successful separation of Corebridge, challenges in product pricing and guarantee management, foreign operation exposures, cybersecurity threats, and reliance on third-party providers - The separation of the Life and Retirement business (Corebridge) involves risks, with no assurance of completion or expected benefits, and AIG will have continuing equity market exposure until its stake is fully divested[52](index=52&type=chunk)[78](index=78&type=chunk) - AIG is exposed to significant risks from its reliance on critical technology systems and the need to safeguard data, where a system failure, cyberattack, or data breach could compromise business conduct and lead to regulatory sanctions and financial loss[52](index=52&type=chunk)[81](index=81&type=chunk) - The company relies on third-party providers for a broad range of services, including investment management, policy administration, and IT functions, where failure to perform could adversely affect business and operations[52](index=52&type=chunk)[85](index=85&type=chunk) - The COVID-19 pandemic has adversely affected AIG's business through capital market volatility, increased mortality claims, and an inflationary environment, with its ultimate impact remaining uncertain[52](index=52&type=chunk)[88](index=88&type=chunk) [Regulation](index=18&type=section&id=Regulation) AIG's heavily regulated businesses face risks from changing laws, increased capital requirements, and new tax laws, potentially limiting the utilization of significant tax loss carryforwards - AIG's operations are subject to extensive and potentially conflicting laws and regulations in the jurisdictions where it operates, which can affect operations, increase capital requirements, and reduce profitability[54](index=54&type=chunk)[92](index=92&type=chunk) - An "ownership change" as defined in Section 382 of the Internal Revenue Code could significantly limit AIG's ability to utilize its approximately **$24.8 billion** in U.S. federal net operating loss carryforwards and **$22 million** in foreign tax credits[54](index=54&type=chunk)[93](index=93&type=chunk) - The recently enacted Inflation Reduction Act (IRA) establishes a new **15%** corporate alternative minimum tax (CAMT) and a **1%** excise tax on stock repurchases, which may impact AIG's after-tax earnings and cash flow starting in 2023[54](index=54&type=chunk)[94](index=94&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=42&type=section&id=ITEM%205%20%7C%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) AIG's common stock is listed on the NYSE, with **$780 million** in repurchases during Q4 2022, and its five-year cumulative total shareholder return was **21.89%**, outperforming the S&P 500 Life & Health Insurance Index but underperforming broader indices Issuer Purchases of Equity Securities (Q4 2022) | Period | Total Shares Repurchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | Oct 1-31 | 4,698,357 | 51.97 | | Nov 1-30 | 3,793,917 | 60.21 | | Dec 1-31 | 4,896,176 | 62.59 | | **Total** | **13,388,450** | **58.19** | - As of December 31, 2022, approximately **$3.8 billion** remained under the Board of Directors' authorization for the repurchase of AIG Common Stock[105](index=105&type=chunk) Five-Year Cumulative Total Shareholder Return (Value of $100 Invested on Dec 31, 2017) | Index | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **AIG** | $100.00 | $67.91 | $90.72 | $69.62 | $107.16 | $121.89 | | **S&P 500** | $100.00 | $95.62 | $125.72 | $148.85 | $191.58 | $156.88 | | **S&P 500 P&C Insurance** | $100.00 | $95.31 | $119.97 | $128.31 | $153.05 | $181.93 | | **S&P 500 Life & Health Insurance** | $100.00 | $79.23 | $97.60 | $88.35 | $120.76 | $133.25 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=ITEM%207%20%7C%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on AIG's financial condition and results of operations for 2022, highlighting strategic moves, economic impacts, consolidated and segment performance, investment portfolio, insurance reserves, liquidity, capital resources, and enterprise risk management [Executive Summary](index=64&type=section&id=Executive%20Summary) AIG's 2022 was marked by strategic actions, including the Corebridge IPO and deepened asset management partnerships with Blackstone and BlackRock, all within a challenging market environment of rising interest rates, inflation, and geopolitical tensions - On September 19, 2022, AIG closed the IPO of **12.4%** of Corebridge Financial, Inc., raising approximately **$1.7 billion** in gross proceeds and recording a **$608 million** increase to shareholder's equity[170](index=170&type=chunk) - AIG entered into long-term asset management relationships with Blackstone to manage up to **$92.5 billion** for Corebridge and with BlackRock to manage over **$150 billion** of investments for AIG and Corebridge[171](index=171&type=chunk)[172](index=172&type=chunk) - The Russia/Ukraine conflict, which began in February 2022, has the potential to adversely affect AIG's business from an investment, underwriting, and operational perspective, with the company actively monitoring the evolving situation[176](index=176&type=chunk) - As of December 31, 2022, **64%** of the aggregate fixed account values of Individual and Group Retirement annuity products were crediting at the contractual minimum guaranteed interest rate[181](index=181&type=chunk) [Consolidated Results of Operations](index=68&type=section&id=Consolidated%20Results%20of%20Operations) For 2022, AIG reported net income attributable to common shareholders of **$10.2 billion**, an increase driven by a gain on the Fortitude Re embedded derivative and higher General Insurance underwriting income, partially offset by lower net investment income and the absence of a prior year gain Consolidated Results of Operations (in millions) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Total Revenues | $56,437 | $52,057 | | Total Benefits, Losses and Expenses | $42,155 | $39,958 | | Income from Continuing Operations | $11,276 | $9,923 | | **Net Income Attributable to AIG Common Shareholders** | **$10,247** | **$9,359** | - The increase in net income was primarily driven by an **$8.1 billion** increase in Net realized gains on the Fortitude Re funds withheld embedded derivative and a **$1.1 billion** increase in underwriting income in General Insurance[193](index=193&type=chunk) - The effective tax rate on income from continuing operations was **21.0% in 2022**, compared to **18.0% in 2021**, with the increase primarily attributable to higher income from continuing operations[194](index=194&type=chunk) Book Value Per Common Share | Metric | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Book value per common share | $53.83 | $79.97 | | Adjusted book value per common share (Non-GAAP) | $73.87 | $68.83 | [Business Segment Operations](index=73&type=section&id=Business%20Segment%20Operations) In 2022, General Insurance adjusted pre-tax income slightly increased to **$4.4 billion** due to strong underwriting, while Life and Retirement adjusted pre-tax income decreased to **$2.7 billion** due to lower alternative investment returns, and Other Operations improved its pre-tax loss to **$1.9 billion** Adjusted Pre-tax Income (Loss) by Segment (in millions) | Segment | 2022 | 2021 | | :--- | :--- | :--- | | General Insurance | $4,430 | $4,359 | | Life and Retirement | $2,657 | $3,911 | | Other Operations | $(1,947) | $(2,350) | | **Total Adjusted Pre-tax Income** | **$5,140** | **$5,920** | [Investments](index=93&type=section&id=Investments) AIG's investment strategy focuses on income generation and capital preservation, but 2022 saw significant net unrealized losses of **$47.7 billion** in fixed maturity securities due to rising interest rates and lower net investment income from alternative investments - A significant rise in interest rates and widening credit spreads resulted in net unrealized losses in the available for sale fixed security portfolio of **$47.7 billion** during 2022, decreasing from a net unrealized gain of **$18.1 billion** at year-end 2021 to a net unrealized loss of **$29.7 billion** at year-end 2022[284](index=284&type=chunk) Fixed Maturity Security Portfolio by NAIC Designation (Fair Value, in millions) | NAIC Designation | Fair Value (Dec 31, 2022) | | :--- | :--- | | 1 (Highest Quality) | $139,048 | | 2 (High Quality) | $74,377 | | **Total Investment Grade** | **$213,425** | | 3 - 6 (Below Investment Grade) | $17,195 | | **Total** | **$230,620** | - Net realized gains were **$9.0 billion in 2022**, a significant increase from **$2.2 billion in 2021**, driven by a **$7.5 billion** gain on the Fortitude Re funds withheld embedded derivative, partially offset by a **$1.2 billion** net loss on sales of fixed maturity securities[322](index=322&type=chunk) [Insurance Reserves](index=102&type=section&id=Insurance%20Reserves) As of December 31, 2022, AIG's net liability for unpaid losses and loss adjustment expenses was **$43.1 billion**, with favorable prior year loss reserve development of **$523 million** in 2022, while Life and Retirement experienced a net unfavorable impact from actuarial assumption updates due to higher interest rates Net Loss Reserves by Segment (in millions) | Segment | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | General Insurance | $42,434 | $43,146 | | Other Operations Run-Off | $631 | $667 | | **Total** | **$43,065** | **$43,813** | - In 2022, AIG recognized favorable prior year loss reserve development of **$523 million**, compared to favorable development of **$115 million in 2021**[329](index=329&type=chunk) - The annual update of actuarial assumptions for Life and Retirement products resulted in a net unfavorable impact to adjusted pre-tax income of **$57 million in 2022**, primarily in fixed annuities driven by the impact of higher interest rates on expected lapses[348](index=348&type=chunk) [Liquidity and Capital Resources](index=114&type=section&id=Liquidity%20and%20Capital%20Resources) AIG maintains liquidity through subsidiary dividends, cash from operations, and credit facilities, with **$8.2 billion** in liquidity sources as of December 31, 2022, and major capital uses in 2022 included **$9.4 billion** for debt repayment and **$5.1 billion** for common stock repurchases - As of December 31, 2022, AIG Parent had approximately **$8.2 billion** in liquidity sources, including cash, short-term investments, and a **$4.5 billion** committed revolving credit facility[389](index=389&type=chunk) Key Uses of Capital in 2022 | Use of Capital | Amount (billions) | | :--- | :--- | | Debt Repayment/Redemption | $9.4 | | Common Stock Repurchases | $5.1 | | Common Stock Dividends | $1.0 | - During 2022, AIG Parent received dividends of **$1.9 billion** from its General Insurance companies and **$753 million** from its Life and Retirement companies[379](index=379&type=chunk) Summary of Contractual Obligations (in millions) | Obligation | Total Payments Due | | :--- | :--- | | Loss reserves (gross, undiscounted) | $77,699 | | Insurance and investment contract liabilities | $294,416 | | Short-term and Long-term debt | $21,299 | | Interest payments on debt | $13,703 | | **Total** | **$407,117** | [Enterprise Risk Management](index=124&type=section&id=Enterprise%20Risk%20Management) AIG employs an integrated three-lines-of-defense model for risk management, overseen by the Board's Risk and Capital Committee, utilizing a risk appetite framework with tiered limits and proprietary capital models to assess aggregate risk, including a modeled 1-in-250 year worldwide all-peril probable maximum loss of **$3.2 billion** - AIG employs a Three Lines of Defense model for risk management, where business leaders have primary accountability, the Enterprise Risk Management (ERM) department provides oversight, and the Internal Audit Group offers independent assurance[421](index=421&type=chunk) - The company's Risk Appetite Framework uses risk tolerances and a three-tiered limits hierarchy (Board-level, AIG management level, and business unit level) to manage its risk profile and financial resources[423](index=423&type=chunk)[425](index=425&type=chunk) Modeled Annual Aggregate Catastrophe Losses (Net of Reinsurance, After Tax) | Exposure | Probability | Estimated Loss (billions) | | :--- | :--- | :--- | | World-wide all peril | 1-in-250 year (0.4%) | $3.2 | | U.S. Hurricane | 1-in-100 year (1.0%) | $1.1 | | U.S. Earthquake | 1-in-250 year (0.4%) | $1.3 | - AIG manages market risk from its variable annuity guaranteed living benefits through product design features and an economic hedging program that utilizes derivatives to offset changes in the economic value of these liabilities[454](index=454&type=chunk) [Financial Statements and Supplementary Data](index=141&type=section&id=ITEM%208%20%7C%20Financial%20Statements%20and%20Supplementary%20Data) This section presents AIG's audited consolidated financial statements for the three years ended December 31, 2022, with accompanying notes detailing accounting policies, segment information, fair value measurements, and other financial matters, along with an unqualified opinion from PricewaterhouseCoopers LLP [Report of Independent Registered Public Accounting Firm](index=142&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers LLP issued an unqualified opinion on AIG's consolidated financial statements for the three years ended December 31, 2022, and on the effectiveness of its internal control over financial reporting, while identifying critical audit matters including the valuation of Level 3 fixed maturity securities and insurance loss reserves - PricewaterhouseCoopers LLP issued an unqualified opinion, stating that AIG's consolidated financial statements present fairly, in all material respects, the financial position and results of operations in conformity with U.S. GAAP[470](index=470&type=chunk) - The firm also issued an unqualified opinion that AIG maintained effective internal control over financial reporting as of December 31, 2022[470](index=470&type=chunk) - Critical Audit Matters: - Valuation of certain Level 3 fixed maturity securities[473](index=473&type=chunk) - Valuation of insurance liabilities - unpaid losses and loss adjustment expenses (loss reserves), net of reinsurance[475](index=475&type=chunk) - Valuation of embedded derivatives for variable annuity and fixed index annuity products and certain guaranteed benefit features for universal life products[476](index=476&type=chunk) - Valuation of Deferred Policy Acquisition Costs (DAC) for universal life and individual retirement variable annuity products[478](index=478&type=chunk) - Recoverability of the U.S. federal deferred tax asset[478](index=478&type=chunk) [Consolidated Financial Statements](index=147&type=section&id=Consolidated%20Financial%20Statements) AIG's consolidated balance sheet as of December 31, 2022, shows total assets of **$526.6 billion** and total AIG shareholders' equity of **$40.0 billion**, a decrease largely due to unrealized losses on fixed maturity securities, while net income attributable to AIG for 2022 was **$10.3 billion** with **$4.2 billion** in net cash from operating activities Consolidated Balance Sheet Highlights (in millions) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Investments | $309,150 | $359,292 | | Total Assets | $526,634 | $596,112 | | Total Liabilities | $484,399 | $527,200 | | Total AIG Shareholders' Equity | $40,002 | $65,956 | Consolidated Income Statement Highlights (in millions) | Account | 2022 | 2021 | | :--- | :--- | :--- | | Total Revenues | $56,437 | $52,057 | | Net Income (Loss) | $11,275 | $9,923 | | Net Income (Loss) Attributable to AIG | $10,276 | $9,388 | Consolidated Cash Flow Highlights (in millions) | Account | 2022 | 2021 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $4,207 | $6,279 | | Net Cash Used in Investing Activities | $(3,626) | $(3,280) | | Net Cash Provided by (Used in) Financing Activities | $(676) | $(3,735) | [Notes to Consolidated Financial Statements](index=154&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of AIG's accounting policies and financial results, including the Corebridge IPO, asset management agreements, segment data, fair value measurements, and the expected impact of new accounting standards for long-duration insurance contracts - AIG closed the IPO of **12.4%** of Corebridge Financial, Inc. on September 19, 2022, raising approximately **$1.7 billion** in gross proceeds, while retaining a **77.7%** ownership stake and continuing to consolidate Corebridge[496](index=496&type=chunk)[497](index=497&type=chunk) - On June 2, 2020, AIG completed the sale of a majority interest in Fortitude Group Holdings, LLC, receiving **$2.2 billion** in proceeds and recording a **$4.3 billion** after-tax reduction to shareholders' equity[500](index=500&type=chunk) - AIG will adopt new accounting standards for long-duration insurance contracts on January 1, 2023, with the adoption expected to decrease after-tax equity as of the transition date (Jan 1, 2021) by approximately **$1.0 billion to $1.5 billion**[513](index=513&type=chunk) - As of December 31, 2022, AIG had **$24.9 billion** in Level 3 bonds available for sale and **$7.1 billion** in Level 3 policyholder contract deposit liabilities, indicating significant use of unobservable inputs in fair value measurements[556](index=556&type=chunk)

American International Group, Inc. (NYSE:AIG) Q3 2022 Earnings Conference Call November 2, 2022 8:30 AM ET Company Participants Quentin McMillan - IR Peter Zaffino - Chairman and CEO Shane Fitzsimons - CFO Mark Lyons - Global Chief Actuary and Head, Portfolio Management David McElroy - EVP and Chief Executive Officer, AIG General Insurance Conference Call Participants J Paul Newsome - Piper Sandler Meyer Shields - KBW Elyse Greenspan - Wells Fargo Brian Meredith - UBS Alexander Scott - Goldman Sachs Operat ...

Summary of AIG's KBW Insurance Conference 2022 Call Company Overview - **Company**: American International Group, Inc. (NYSE:AIG) - **Event**: KBW Insurance Conference 2022 - **Date**: September 7, 2022 - **Key Participants**: Peter Zaffino (Chairman and CEO), Meyer Shields (KBW) Core Points and Arguments Company Transformation and Strategy - AIG has undergone significant transformation since 2018, focusing on repositioning and changing its operational strategy to address fundamental issues in its core Property & Casualty (P&C) business [2][3] - The company has implemented a turnaround program known as AIG 200, which aims to improve underwriting results, reduce volatility, and modernize operations [5][6] - AIG has exited or repositioned ineffective businesses and established a new reinsurance strategy focused on combined ratio improvement and risk-adjusted returns [4][6] Underwriting and Financial Performance - AIG has reduced gross limits by over $1 trillion since 2018 and achieved cumulative rate increases of over 50% across its gross portfolio [8][10] - The company reported a sub-90 calendar year combined ratio in General Insurance for the first time since the financial crisis, marking a significant milestone [11] - AIG has experienced seven consecutive quarters of net premium growth in Commercial Lines, with an 85% retention rate on its Global Commercial business [10][11] Cost Management and Capital Strategy - AIG achieved $1 billion in cost savings six months ahead of schedule as part of the AIG 200 initiative [11][12] - The company has executed a capital management strategy that includes reducing leverage, returning capital to shareholders, and buying back shares [12][13] - AIG aims for a return on capital employed (ROCE) of 10% or greater, focusing on underwriting excellence, expense reduction, and the separation of its life and retirement business [13] Market Dynamics and Competitive Position - The wholesale insurance market has changed dramatically, with wholesale brokers growing faster than retail brokers, capturing significant market share [30][31] - AIG has adapted to these changes by focusing on dual distribution and specialized underwriting strategies [32][33] - The company has seen consistent double-digit rate increases in property wholesale, indicating a strong market position [33] International Operations and Growth Opportunities - AIG's Japanese market is a significant growth area, with opportunities to improve combined ratios and expand into digital capabilities [24][26] - The company is optimistic about growth in cyber insurance, which is currently underdeveloped in Japan [27] Reinsurance Strategy - AIG has improved its reinsurance strategy, with significant enhancements in ceding commissions and a focus on quality underwriting [60][64] - The company has reduced its net retention in casualty from $100 million to a maximum of $15 million, reflecting a more conservative risk appetite [10] Future Outlook - AIG is committed to continuous improvement in operational capabilities and digitization as part of its long-term strategy [70][71] - The company plans to maintain expense discipline and improve efficiency as it transitions to a new operating model post-separation of its life and retirement business [72] Additional Important Insights - AIG's operational transformation has been as significant as its underwriting turnaround, with a focus on data management and process improvement [68][71] - The company is cautious about the impact of external factors such as inflation and supply chain issues on its insurance portfolio [40][41] - AIG is actively monitoring the recovery of its travel insurance segment, which was impacted by the COVID-19 pandemic [52][54] This summary encapsulates the key points discussed during the AIG conference call, highlighting the company's strategic initiatives, financial performance, market dynamics, and future outlook.

American International Group, Inc. (NYSE:AIG) Q2 2022 Results Conference Call August 9, 2022 8:30 AM ET Company Participants Quentin McMillan - Investor Relations Peter Zaffino - Chairman and Chief Executive Officer Mark Lyons - Global Chief Actuary and Head, Portfolio Management Shane Fitzsimons - Chief Financial Officer David McElroy - EVP and Chief Executive Officer, AIG General Insurance Kevin Hogan - EVP and Chief Executive Officer, AIG Life & Retirement Conference Call Participants Meyer Shields - KBW ...

American International Group, Inc. (NYSE:AIG) Q1 2022 Earnings Conference Call May 4, 2022 8:30 AM ET Company Participants Quentin McMillan - Investor Relations Peter Zaffino - Chairman and Chief Executive Officer Mark Lyons - Global Chief Actuary and Head, Portfolio Management Shane Fitzsimons - Chief Financial Officer David McElroy - Executive Vice President and Chief Executive Officer, AIG General Insurance Kevin Hogan - Executive Vice President and Chief Executive Officer, AIG Life & Retirement Conferen ...