American International Group, Inc.

2017 Annual Report

Financial Highlights1

2017 AIG Financial Highlights
Years Ended December 31, (dollars in millions, except per share data) 2017 2016 2015
Operating results:
Total revenues 49,520 52,367 58,327
Net income (loss) attributable to AIG (6,084) (849) 2,196
Adjusted after-tax
income attributable to AIG2

2,231

406

2,872
Net income (loss) per common share
attributable to AIG (diluted)

(6.54)

(0.78)

1.65
Adjusted after-tax income per common
share attributable to AIG (diluted)2

2.34

0.36

2.15
Balance sheet (year-end):
Total assets 498,301 498,264 496,842
Total AIG shareholders’ equity 65,171 76,300 89,658
Key metrics
Book value per common share 72.49 76.66 75.10
Adjusted book value per common share3 54.74 58.57 58.94
Return on equity (ROE) (8.4)% (1.0)% 2.2%
Adjusted ROE4 4.1% 0.6% 3.7%
Core Adjusted ROE5 3.2% 0.8% 3.8%
General Insurance:
Net premiums written 25,438 28,393 32,199
Adjusted pre-tax income (loss)6 (813) (2,051) 628
Combined ratio7 117.3 118.9 110.1
Accident year combined ratio, as adjusted8 97.1 96.0 97.0
Life and Retirement:
Premiums and deposits9 27,458 29,304 30,398
Adjusted pre-tax income6 3,831 3,428 3,124
Adjusted ROE5 12.4% 10.8% n/a

1 The non-GAAP financial measures presented herein may not be comparable to similarly-named measures reported by other companies. The reconciliations of such measures to the most comparable GAAP measures in accordance with Regulation G are included within this Annual Report, AIG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (included herein) or in the Fourth Quarter 2017 Financial Supplement available in the Investor Information section of AIG’s website, www.aig.com.

2 Adjusted after-tax income attributable to AIG and Adjusted after-tax income per common share attributable to AIG (diluted) are reconciled on pages 64 and 65 of the Annual Report on Form 10-K (included herein).

3 Adjusted book value per common share is reconciled on page 35 of the Annual Report on Form 10-K (included herein).

4 Return on equity – adjusted after-tax income excluding AOCI and DTA is reconciled on page 35 of the Annual Report on Form 10-K (included herein).

5 Adjusted ROE for Core and Life and Retirement are defined and reconciled on pages 335 and 337 of this Annual Report. Life and Retirement Adjusted ROE is only available for fiscal years 2016 and 2017, and not prior.

6 Adjusted pre-tax income is a GAAP measure for General Insurance and Life and Retirement, and is defined on page 39 of the Annual Report on Form 10-K (included herein).

7 Consistent with our definition of adjusted pre-tax income, excludes loss reserve discount and the portion of favorable or unfavorable prior year reserve development for which we have ceded the risk under retroactive reinsurance agreements and related changes in amortization of the deferred gain.

8 Accident year combined ratio, as adjusted, is reconciled on page 72 in the Annual Report on Form 10-K (included herein).

9 Premiums and deposits is defined and reconciled on pages 335 and 337 of this Annual Report.