American International Group, Inc.

2016 Annual Report

Financial Highlights1

Year Ended December 31,
(dollars in millions, except per share data)
2016 2015 2014
Operating results:
Total revenues $52,367 $58,327 $64,406
Net income (loss) attributable to AIG $(849) $2,196 $7,529
After-tax operating income
attributable to AIG2

$406

$2,872

$6,941
Net income (loss) per common share
attributable to AIG (diluted)

$(0.78)

$1.65

$5.20
After-tax operating income per common
share attributable to AIG (diluted)2

$0.36

$2.15

$4.79
Balance sheet (year-end):
Total assets $498,264 $496,842 $515,500
Total AIG shareholders' equity $76,300 $89,658 $106,898
Key metrics
Book value per common share $76.66 $75.10 $77.69
Adjusted book value per common share,
including dividend growth3

$59.79

$59.26

$58.23
Return on equity (ROE) (1.0)% 2.2% 7.1%
Adjusted ROE4 0.6% 3.7% 8.8%
Core Normalized ROE5 7.8% 7.2% n/a
Commercial Insurance:
Combined ratio6 133.1 114.5 100.0
Accident year combined ratio, as adjusted7 95.8 94.7 94.9
Consumer Insurance:
Personal Insurance combined ratio 96.4 102.3 99.9
Personal Insurance accident year
combined ratio, as adjusted7

96.2

101.1

99.5
Individual Retirement premiums
and deposits8

$16,062

$18,376

$17,324
Group Retirement premiums and deposits8 $7,570 $6,920 $6,743
Life Insurance premiums and deposits8 $3,519 $3,370 $3,174

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, 2016 (included herein) or in the Fourth Quarter 2016 Financial Supplement available in the Investor Information section of AIG's website, www.aig.com.

2 After-tax operating income attributable to AIG and After-tax operating 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 Book value per common share excluding Accumulated other comprehensive income (loss) (AOCI) and Deferred tax assets (DTA), including dividend growth, is reconciled on page 35 of the Annual Report on Form 10-K (included herein).

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

5 Normalized return on attributed equity is defined and reconciled on pages 330 and 334 of this Annual Report. Normalized return on attributed equity is only available for fiscal years 2015 and 2016, and not prior.

6 Consistent with our definition of pre-tax operating income, excludes loss reserve discount.

7 Accident year combined ratios, as adjusted, are reconciled on pages 70 and 94 for Commercial and Personal Insurance, respectively, in the Annual Report on Form 10-K (included herein).

8 Premiums and deposits are reconciled on pages 86, 90, and 93 for Individual Retirement, Group Retirement, and Life Insurance, respectively, in the Annual Report on Form 10-K (included herein).