What changed in this filing

/stocks — the workspaceLOADING

Item 5. Other Information

2025-05-02 compared with 2024-11-07 · 1296 added, 1903 removed, 2097 unchanged (60% of the section changed)

This section is long enough that the comparison stopped early. What follows is partial, and the remainder is not necessarily unchanged.

Other Information

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

Part I – Financial Information

2 unchanged sentences

Condensed Consolidated Balance Sheets (unaudited)

(in millions, except for share data) September 30,

(in millions, except for share data) March 31,

2025 December 31,

4 unchanged sentences

$ 66,027 $ 64,006

Other bond securities, at fair value (See Note 6)

Equity securities, at fair value (See Note 6)

Other bond securities, at fair value 754 745

Equity securities, at fair value 733 704

Mortgage and other loans receivable, net of allowance for credit losses of $ 37,791 in 2025 and $ 37,800 in 2024

10 unchanged sentences

Premiums and other receivables, net of allowance for credit losses and disputes of $ 129 in 2025 and $ 127 in 2024

Reinsurance assets - Fortitude Re, net of allowance for credit losses and disputes of $ 0 in 2024 and $ 0 in 2023

11,684 10,463

Reinsurance assets - Fortitude Re

Reinsurance assets - other, net of allowance for credit losses and disputes of $ 230 in 2025 and $ 220 in 2024

7 unchanged sentences

2024 - $ 179 )

Assets held for sale 137 30

Assets of discontinued operations — 378,748

Total assets $ 161,864 $ 161,322

6 unchanged sentences

2025 - $( 79 );

2024 - $( 128 ))

Premiums and other related payables 7,343 6,052

7 unchanged sentences

Debt of consolidated investment entities 157 158

Liabilities held for sale 78 28

Liabilities of discontinued operations — 366,089

Total liabilities 120,405 118,772

1 unchanged sentence

AIG shareholders’ equity:

Series A non-cumulative preferred stock and additional paid in capital, $ 5.00 par value;

100,000,000 shares authorized;

shares issued:

2024 - 0 and 2023 - 20,000 ;

liquidation preference $ 500

Common stock, $ 2.50 par value;

13 unchanged sentences

Total liabilities and equity $ 161,864 $ 161,322

* See Note 10 for details of balances associated with variable interest entities.

See accompanying Notes to Condensed Consolidated Financial Statements.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

American International Group, Inc.

Condensed Consolidated Statements of Income (Loss) (unaudited)

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(dollars in millions, except per common share data) 2025 2024

4 unchanged sentences

Total net investment income 1,105 979

Net realized gains (losses):

Net realized gains (losses) - excluding Fortitude Re funds withheld assets and embedded derivative 8 ( 189 ) ( 238 ) ( 571 )

Net realized losses:

Net realized losses - excluding Fortitude Re funds withheld assets and embedded derivative ( 60 ) ( 59 )

Net realized losses on Fortitude Re funds withheld assets ( 2 ) ( 19 )

Net realized gains (losses) on Fortitude Re funds withheld embedded derivative ( 157 ) 57 ( 158 ) ( 25 )

Net realized losses on Fortitude Re funds withheld embedded derivative ( 41 ) ( 9 )

Total net realized losses ( 103 ) ( 87 )

6 unchanged sentences

Interest expense 92 116

Loss on extinguishment of debt — 21 1 21

Net (gain) loss on divestitures and other ( 3 ) —

3 unchanged sentences

Income from continuing operations 698 797

Income (loss) from discontinued operations, net of income taxes ( 24 ) 2,046 ( 3,580 ) 2,472

Net income (loss) 457 2,747 ( 1,827 ) 4,351

Net income (loss) attributable to noncontrolling interests ( 2 ) 720 475 801

Net income (loss) attributable to AIG 459 2,027 ( 2,302 ) 3,550

Income from discontinued operations, net of income taxes — 803

Net income 698 1,600

Net income attributable to noncontrolling interests — 384

Net income attributable to AIG 698 1,216

Dividends on preferred stock and preferred stock redemption premiums — 22

Net income (loss) attributable to AIG common shareholders $ 459 $ 2,020 $ ( 2,324 ) $ 3,528

Net income attributable to AIG common shareholders $ 698 $ 1,194

Income per common share attributable to AIG common shareholders:

Income from continuing operations $ 1.18 $ 1.14

Income (loss) from discontinued operations $ ( 0.03 ) $ 1.86 $ ( 6.13 ) $ 2.30

Net income (loss) attributable to AIG common shareholders $ 0.72 $ 2.83 $ ( 3.51 ) $ 4.86

Income from discontinued operations $ — $ 0.61

Net income attributable to AIG common shareholders $ 1.18 $ 1.75

Income from continuing operations $ 1.16 $ 1.13

Income (loss) from discontinued operations $ ( 0.03 ) $ 1.84 $ ( 6.07 ) $ 2.29

Net income (loss) attributable to AIG common shareholders $ 0.71 $ 2.81 $ ( 3.48 ) $ 4.83

Income from discontinued operations $ — $ 0.61

Net income attributable to AIG common shareholders $ 1.16 $ 1.74

Weighted average shares outstanding:

2 unchanged sentences

See accompanying Notes to Condensed Consolidated Financial Statements.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

American International Group, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(in millions) 2025 2024

Net income (loss) $ 457 $ 2,747 $ ( 1,827 ) $ 4,351

Net income $ 698 $ 1,600

Other comprehensive income (loss), net of tax

Change in unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken 37 ( 18 ) 63 ( 1 )

Change in unrealized appreciation of fixed maturity securities on which allowance for credit losses was taken 4 21

Change in unrealized appreciation (depreciation) of all other investments 425 ( 115 )

3 unchanged sentences

Change in other comprehensive income (loss) related to discontinued operations — ( 627 )

Corebridge Deconsolidation — — 7,214 —

Other comprehensive income (loss) 636 ( 1,057 )

Comprehensive income (loss) 2,304 ( 2,171 ) 5,657 1,608

Comprehensive income (loss) attributable to noncontrolling interests 2 ( 712 ) 181 ( 263 )

Comprehensive income (loss) attributable to AIG $ 2,302 $ ( 1,459 ) $ 5,476 $ 1,871

Comprehensive income 1,334 543

Comprehensive income attributable to noncontrolling interests 1 86

Comprehensive income attributable to AIG $ 1,333 $ 457

See accompanying Notes to Condensed Consolidated Financial Statements.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

American International Group, Inc.

10 unchanged sentences

controlling Interests Total

Three Months Ended September 30, 2024

Balance, beginning of period $ — $ 4,766 $ ( 62,255 ) $ 75,274 $ 34,225 $ ( 7,565 ) $ 44,445 $ 30 $ 44,475

Common stock issued under stock plans — — 29 ( 4 ) — — 25 — 25

Purchase of common stock — — ( 1,518 ) — — — ( 1,518 ) — ( 1,518 )

Net income (loss) attributable to AIG or noncontrolling interests — — — — 459 — 459 ( 2 ) 457

Dividends on common stock ($ 0.40 per share)

— — — — ( 254 ) — ( 254 ) — ( 254 )

Other comprehensive income — — — — — 1,843 1,843 4 1,847

Net decrease due to divestitures and acquisitions — — — — — — — ( 6 ) ( 6 )

Other — — — 40 ( 1 ) — 39 8 47

Balance, end of period $ — $ 4,766 $ ( 63,744 ) $ 75,310 $ 34,429 $ ( 5,722 ) $ 45,039 $ 34 $ 45,073

Three Months Ended September 30, 2023

Balance, beginning of period $ 485 $ 4,766 $ ( 57,408 ) $ 77,677 $ 35,916 $ ( 18,982 ) $ 42,454 $ 4,037 $ 46,491

Common stock issued under stock plans — — 11 ( 3 ) — — 8 — 8

Purchase of common stock — — ( 794 ) — — — ( 794 ) — ( 794 )

Net income attributable to AIG or noncontrolling interests — — — — 2,027 — 2,027 720 2,747

Dividends on preferred stock ($ 365.625 per share)

— — — — ( 7 ) — ( 7 ) — ( 7 )

Dividends on common stock ($ 0.36 per share)

— — — — ( 254 ) — ( 254 ) — ( 254 )

Other comprehensive loss — — — — — ( 3,486 ) ( 3,486 ) ( 1,432 ) ( 4,918 )

Net decrease due to divestitures and acquisitions — — — 55 — ( 61 ) ( 6 ) ( 42 ) ( 48 )

Contributions from noncontrolling interests — — — — — — — 8 8

Distributions to noncontrolling interests — — — — — — — ( 65 ) ( 65 )

Other — — — 35 7 — 42 3 45

Balance, end of period $ 485 $ 4,766 $ ( 58,191 ) $ 77,764 $ 37,689 $ ( 22,529 ) $ 39,984 $ 3,229 $ 43,213

AIG | Third Quarter 2024 Form 10-Q

American International Group, Inc.

Condensed Consolidated Statements of Equity (unaudited)(continued)

(in millions, except per share data) Preferred

Capital Common

Stock Treasury

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Income (Loss) Total

Equity Non- redeemable Non-

controlling Interests Total

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Balance, beginning of the year $ — $ 4,766 $ ( 65,573 ) $ 75,348 $ 35,079 $ ( 7,099 ) $ 42,521 $ 29 $ 42,550

Common stock issued under stock plans — — 161 ( 168 ) — — ( 7 ) — ( 7 )

Redemption of preferred stock ( 485 ) — — — — — ( 485 ) — ( 485 )

Purchase of common stock — — ( 2,251 ) — — — ( 2,251 ) — ( 2,251 )

Net income (loss) attributable to AIG or noncontrolling interests — — — — ( 2,302 ) — ( 2,302 ) 475 ( 1,827 )

Dividends on preferred stock ($ 365.625 per share) and preferred stock redemption premiums

— — — — ( 22 ) — ( 22 ) — ( 22 )

Net income attributable to AIG or noncontrolling interests — — — — 698 — 698 — 698

Dividends on common stock ($ 0.40 per share)

— — — — ( 234 ) — ( 234 ) — ( 234 )

Other comprehensive income (loss) — — — — — 7,778 7,778 ( 294 ) 7,484

Net increase (decrease) due to divestitures and acquisitions — — — ( 418 ) — 537 119 ( 6,010 ) ( 5,891 )

Contributions from noncontrolling interests — — — — — — — 28 28

Other comprehensive income — — — — — 635 635 1 636

Distributions to noncontrolling interests — — — — — — — ( 1 ) ( 1 )

1 unchanged sentence

Balance, end of period $ — $ 4,766 $ ( 67,662 ) $ 75,251 $ 35,540 $ ( 6,464 ) $ 41,431 $ 28 $ 41,459

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Balance, beginning of year $ 485 $ 4,766 $ ( 59,189 ) $ 75,810 $ 37,516 $ ( 14,037 ) $ 45,351 $ 5,950 $ 51,301

Common stock issued under stock plans — — 268 ( 295 ) — — ( 27 ) — ( 27 )

Redemption of preferred stock ( 485 ) — — — — — ( 485 ) — ( 485 )

Purchase of common stock — — ( 1,682 ) — — — ( 1,682 ) — ( 1,682 )

Net income attributable to AIG or noncontrolling interests — — — — 1,216 — 1,216 384 1,600

Dividends on preferred stock ($ 1,096.875 per share)

Dividends on preferred stock ($ 365.625 per share) and preferred stock redemption premiums

— — — — ( 22 ) — ( 22 ) — ( 22 )

2 unchanged sentences

Other comprehensive loss — — — — — ( 759 ) ( 759 ) ( 298 ) ( 1,057 )

Net increase (decrease) due to divestitures and acquisitions — — — ( 1,858 ) — 1,766 ( 92 ) 1,219 1,127

Net decrease due to divestitures and acquisitions — — — ( 10 ) — ( 73 ) ( 83 ) ( 202 ) ( 285 )

Contributions from noncontrolling interests — — — — — — — 11 11

3 unchanged sentences

See accompanying Notes to Condensed Consolidated Financial Statements.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

American International Group, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2025 2024

Cash flows from operating activities:

Net income (loss) $ ( 1,827 ) $ 4,351

(Income) loss from discontinued operations 3,580 ( 2,472 )

Net income $ 698 $ 1,600

Income from discontinued operations — ( 803 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

1 unchanged sentence

Net losses on sales of securities available for sale and other assets 260 83

Net gain on divestitures and other ( 94 ) ( 89 )

Loss on extinguishment of debt 1 21

Unrealized (gains) losses in earnings - net ( 4 ) 564

Net (gain) loss on divestitures and other ( 3 ) —

Unrealized gains in earnings - net ( 317 ) ( 196 )

Equity in income from equity method investments, net of dividends or distributions ( 3 ) ( 17 )

Depreciation and other amortization 866 851

Impairments of assets 24 14

Changes in operating assets and liabilities:

6 unchanged sentences

Total adjustments ( 754 ) ( 541 )

Net cash provided by operating activities - continuing operations 3,252 4,743

Net cash used in operating activities - discontinued operations ( 104 ) ( 119 )

Net cash provided by operating activities 3,148 4,624

Net cash provided by (used in) operating activities - continuing operations ( 56 ) 256

Net cash provided by operating activities - discontinued operations — 265

Net cash provided by (used in) operating activities ( 56 ) 521

Cash flows from investing activities:

4 unchanged sentences

Other invested assets 316 237

Divestitures, net 6 237

Maturities of fixed maturity securities available for sale 2,060 2,137

7 unchanged sentences

Other, net ( 214 ) ( 47 )

Net cash provided by (used in) investing activities - continuing operations 3,190 ( 1,595 )

Net cash provided by investing activities - continuing operations 2,751 2,980

Net cash used in investing activities - discontinued operations — ( 2,674 )

Net cash used in investing activities ( 981 ) ( 4,073 )

Net cash provided by investing activities 2,751 306

Cash flows from financing activities:

Proceeds from (payments for)

Issuance of long-term debt 1 742

Repayments of long-term debt ( 247 ) ( 459 )

9 unchanged sentences

Effect of exchange rate changes on cash and restricted cash 18 ( 29 )

Net increase in cash and restricted cash 71 275

Net increase (decrease) in cash and restricted cash 36 ( 346 )

Cash and restricted cash at beginning of year 1,372 1,573

1 unchanged sentence

Cash and restricted cash at end of period $ 1,408 $ 1,437

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

American International Group, Inc.

1 unchanged sentence

Supplementary Disclosure of Condensed Consolidated Cash Flow Information

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2025 2024

7 unchanged sentences

Non-cash investing activities:

Fixed maturity securities available for sale received in connection with pension risk transfer transactions $ 1,316 $ 2,818

Fixed maturity securities available for sale received in connection with pension risk transfer transactions attributed to discontinued operations $ — $ 1,316

Fixed maturity securities and other invested assets received in connection with reinsurance transactions $ — $ 40

5 unchanged sentences

See accompanying Notes to Condensed Consolidated Financial Statements.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 1.

3 unchanged sentences

is a leading global insurance organization.

AIG provides insurance solutions that help businesses and individuals in approximately 190 countries and jurisdictions protect their assets and manage risks through AIG operations and network partners.

AIG provides insurance solutions that help businesses and individuals in over 200 countries and jurisdictions protect their assets and manage risks through AIG operations, licenses and authorizations as well as network partners.

Unless the context indicates otherwise, the terms “AIG,” “we,” “us,” “our” or "the Company" mean American International Group, Inc.

4 unchanged sentences

In the opinion of management, these Condensed Consolidated Financial Statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein.

Operating results for the nine months ended September 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

We evaluated the need to recognize or disclose events that occurred subsequent to September 30, 2024 and prior to the issuance of these Condensed Consolidated Financial Statements.

Prior year Condensed Consolidated Financial Statements have been reclassified for comparative purpose to conform with the captions presented in the current year.

AMENDED AND RESTATED CREDIT AGREEMENT

On September 27, 2024, AIG entered into the amended and restated credit agreement (Amended Credit Agreement) that amends and restates AIG's credit agreement, dated as of November 19, 2021, which provides for a syndicated, multicurrency revolving credit facility as a potential source of liquidity for general corporate purposes.

The Amended Credit Agreement provides for a five-year total commitment of $ 3.0 billion, consisting of standby letters of credit and/or revolving credit borrowings.

Under the Amended Credit Agreement, the applicable rate, commitment fee and letter of credit fee are determined by reference to the credit ratings of AIG’s senior long-term unsecured debt.

The Amended Credit Agreement is scheduled to expire in September 2029.

As of September 30, 2024, there were no borrowings or letters of credit outstanding under the Amended Credit Agreement, so that a total of approximately $ 3.0 billion remains available under the Amended Credit Agreement.

SALES/DISPOSALS OF ASSETS AND BUSINESSES

Global Personal Travel Business

On June 26, 2024, AIG announced that it has entered into a definitive agreement to sell its global individual personal travel insurance and assistance business to Zurich Insurance Group for $ 600 million in cash plus additional earn-out consideration.

The sale is expected to close by the end of 2024, subject to customary closing conditions, including the receipt of regulatory approvals.

For further details, see Note 4.

Results of operations for the three months ended March 31, 2025, are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

We evaluated the need to recognize or disclose events that occurred subsequent to March 31, 2025 and prior to the issuance of these Condensed Consolidated Financial Statements.

USE OF ESTIMATES

4 unchanged sentences

• reinsurance assets, including the allowance for credit losses and disputes;

• goodwill impairment;

• allowance for credit losses on certain investments, primarily on loans and available for sale fixed maturity securities;

1 unchanged sentence

• income taxes, in particular the recoverability of our deferred tax asset and establishment of provisions for uncertain tax positions.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 1.

Basis of Presentation

These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation.

To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected.

Certain critical accounting estimates were eliminated as a result of the deconsolidation of Corebridge Financial, Inc.

(Corebridge), the holding company for AIG's former Life and Retirement business, in the second quarter of 2024.

There were no changes to the remaining critical accounting estimates.

For further details, see Note 4.

OUT OF PERIOD ADJUSTMENTS

During the three months ended March 31, 2025, we recorded out of period adjustments relating to prior years that increased Net income attributable to AIG by $ 51 million and increased Income from continuing operations before income tax expense by $ 140 million.

The out of period adjustments are primarily related to the recognition of gains on intercompany investment transactions and the settlement of derivative and collateral transactions.

We evaluated the aggregate impact of these out of period adjustments and concluded they were not material to any previously issued interim and annual Consolidated Financial Statements and that the adjustments are not expected to be material to AIG’s Consolidated Financial Statements for the year ending December 31, 2025.

Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Income from continuing operations before income tax expense for the year ended December 31, 2024 would have decreased by $ 79 million and would have increased for the years ended December 31, 2023 and 2022 by $ 34 million and $ 42 million (and all prior years by $ 143 million), respectively.

Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG for the year ended December 31, 2024 would have decreased by $ 68 million and would have increased for the years ended December 31, 2023 and 2022 by $ 19 million and $ 23 million (and all prior years by $ 77 million), respectively.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 2.

Summary of Significant Accounting Policies

ACCOUNTING STANDARDS ADOPTED DURING 2024

Fair Value Measurement

On June 30, 2022, the Financial Accounting Standards Board (FASB) issued an accounting standards update to address diversity in practice by clarifying that a contractual sale restriction should not be considered in the measurement of the fair value of an equity security.

It also requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities.

The Company adopted the standard on January 1, 2024, prospectively for entities other than investment companies.

The adoption of the standard did not have a material impact on AIG Consolidated Financial Statements.

Summary of Significant Accounting Policies

FUTURE APPLICATION OF ACCOUNTING STANDARDS

In December 2023, the FASB issued an accounting standard update to address improvements to income tax disclosures.

In December 2023, the Financial Accounting Standards Board (FASB) issued an accounting standard update to address improvements to income tax disclosures.

The standard requires disaggregated information about a company’s effective tax rate reconciliation as well as information on income taxes paid.

2 unchanged sentences

We are assessing the impact of this standard.

Segment Reporting

In November 2023, the FASB issued an accounting standard update to address improvements to reportable segment disclosures.

The standard primarily requires the following disclosure on an annual and interim basis:

(i) significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss;

and (ii) other segment items and description of its composition.

The standard also requires current annual disclosures about a reportable segment's profits or losses and assets to be disclosed in interim periods and the title and position of the CODM with an explanation of how the CODM uses the reported measure(s) of segment profits or losses in assessing segment performance.

The guidance is effective for public companies for fiscal years beginning after December 15, 2023 and interim periods in fiscal years within fiscal years beginning after December 15, 2024, with early adoption permitted.

The company will adopt this guidance in our 2024 Annual Report on Form 10-K and the amendment will be applied retrospectively to all prior periods presented.

Segment Information

As a result of the Corebridge deconsolidation, we no longer present a Life and Retirement segment and no longer include asset management and Corebridge Life Holdings, Inc.

interest and general expenses within the Other Operations segment.

Historical results of Other Operations have been revised to reflect these changes.

Previously reported results for the General Insurance segment were not impacted by the Corebridge deconsolidation.

For further details on the separation of the Life and Retirement business, see Note 4.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 3.

Disaggregation of Income Statement Expenses

On November 4, 2024, the FASB issued new guidance that is intended to improve disclosures regarding the nature of expenses included in the income statement.

The standard will require companies to disaggregate certain expense captions into specified categories in disclosures within notes to the financial statements and provide qualitative descriptions for those that are not separately disclosed.

The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027.

The requirements can be applied prospectively or retrospectively for prior periods presented when adopted.

We are assessing the impact of the standard.

Segment Information

As presented herein and reflecting the Corebridge deconsolidation, we report our results of operations consistent with the manner in which our chief operating decision makers review the business to assess performance and allocate resources, as follows:

GENERAL INSURANCE

General Insurance business is presented as two operating segments:

• North America – consists of insurance businesses in the United States, Canada and Bermuda.

• International – consists of regional insurance businesses in Japan, the United Kingdom, Europe, Middle East and Africa (EMEA region), Asia Pacific, Latin America and Caribbean, and China.

In the fourth quarter of 2024, the Company realigned its organizational structure and the composition of its reportable segments to reflect changes in how the Company manages its operations, specifically the level at which its chief operating decision makers (CODMs) regularly review operating results and allocate resources.

Our CODMs are the chief executive officer (CEO) and chief financial officer (CFO).

The CODMs evaluate performance of the segments based on underwriting income (loss).

The CODMs use this measure to benchmark AIG’s performance, assessing performance of the segments and in establishing management’s compensation.

AIG has three reportable segments:

North America Commercial, International Commercial and Global Personal.

Prior year's presentations have been recast to conform to the new reportable segments.

Our General Insurance business (General Insurance) consists of our three segments and the Net investment income related to our insurance operations.

NORTH AMERICA COMMERCIAL

North America Commercial consists of insurance businesses in the United States, Canada and Bermuda.

INTERNATIONAL COMMERCIAL

International Commercial consists of insurance businesses in Japan, the United Kingdom, Europe, Middle East and Africa (EMEA region), Asia Pacific, Latin America and Caribbean, and China.

International also includes the results of Talbot Underwriting Ltd.

as well as AIG’s Global Specialty business.

North America and International operating segments consist of the following products:

– Commercial Lines – consists of Property, Liability, Financial Lines and Specialty.

– Personal Insurance – consists of Accident & Health and Personal Lines.

For further discussion on recent activity in the General Insurance business, see Note 1 and Note 4 herein and Note 1 to the Consolidated Financial Statements in the 2023 Annual Report.

GLOBAL PERSONAL

Global Personal consists primarily of insurance businesses in the United States as well as Japan, the United Kingdom, Europe, EMEA region, Asia Pacific, Latin America and Caribbean, and China.

The segments consist of the following products:

– North America and International Commercial consists of Property & Short Tail, Casualty, Financial Lines and Global Specialty.

– Global Personal consists of Global Accident & Health and Personal Lines.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 3.

Segment Information

OTHER OPERATIONS

Other Operations primarily consists of income and expenses from assets, including AIG's ownership of Corebridge, held by AIG Parent and other corporate subsidiaries, deferred tax assets related to tax attributes, corporate expenses and intercompany eliminations, results of our consolidated investment entities, General Insurance portfolios in run-off as well as the historical results of our legacy insurance lines ceded to Fortitude Reinsurance Company Ltd.

(Fortitude Re).

Other Operations predominantly consists of Net Investment Income from our AIG Parent liquidity portfolio, Corebridge Financial, Inc.

(Corebridge) dividend income, corporate General operating expenses, and Interest expense.

SEGMENT RESULTS

We evaluate segment performance based on adjusted revenues and adjusted pre-tax income (loss).

Adjusted revenues and adjusted pre-tax income (loss) are derived by excluding certain items from total revenues and income (loss) from continuing operations before income tax expense (pre-tax income (loss)), respectively.

These items generally fall into one or more of the following broad categories:

legacy matters having no relevance to our current businesses or operating performance;

adjustments to enhance transparency to the underlying economics of transactions;

and measures that we believe to be common to the industry.

Legal entities are attributed to each segment based upon the predominance of activity in that legal entity.

For the items excluded from adjusted revenues and adjusted pre-tax income (loss), see the table below.

The following table presents AIG’s continuing operations by operating segment:

Three Months Ended September 30, 2024 2023

(in millions) Adjusted

Revenues Adjusted

(Loss) Adjusted

Revenues Adjusted

General Insurance

North America - Underwriting income $ 2,638 $ 37 (a)

$ 3,079 $ 235 (a)

International - Underwriting income 3,309 400 (a)

3,343 376 (a)

Net investment income 773 773 756 756

Management uses Underwriting income (loss) as the basis for the segment performance reviews.

AIG calculates Underwriting income (loss) by subtracting Losses and loss adjustment expense incurred, Amortization of deferred policy acquisition costs (DAC), Other acquisition cost, and General operating expense from Net premiums earned.

Assets by reportable segment are not used by the CODMs for purposes of making decisions about allocating resources to the segment and assessing its performance.

The following table presents AIG’s continuing operations by segment:

Three Months Ended March 31, 2025

(in millions) Net

Earned Losses

Expenses (a)(b)

Income Reconciliation

North America Commercial $ 1,174 $ 2,124 $ 1,526 $ 227 $ 47 $ 195 $ 129

International Commercial 2,027 2,051 1,178 245 94 294 240

Global Personal 1,325 1,594 1,062 353 91 214 ( 126 )

Total General Insurance $ 4,526 $ 5,769 $ 3,766 $ 825 $ 232 $ 703 $ 243 $ 736 $ 979

Interest expense — ( 91 )

Other Operations 108 21

Other Operations before consolidation and eliminations 123 ( 141 ) 171 ( 271 )

Consolidation and eliminations — ( 2 ) ( 22 ) ( 7 )

Total Other Operations 123 ( 143 ) 149 ( 278 )

Elimination and consolidations 1 —

Total 845 909

1 unchanged sentence

Changes in the fair values of equity securities and AIG's investment in Corebridge 217 217

Other income (expense) - net ( 1 ) — 17 —

Loss on extinguishment of debt — — — ( 21 )

Net investment income on Fortitude Re funds withheld assets 40 40

Net realized losses on Fortitude Re funds withheld assets — ( 2 )

Net realized gains (losses) on Fortitude Re funds withheld embedded derivative ( 157 ) ( 157 ) 57 57

Net realized gains (losses) (b)

8 7 ( 191 ) ( 190 )

Net gain (loss) on divestitures and other — ( 8 ) — 101

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 3.

Segment Information

Three Months Ended September 30, 2024 2023

(in millions) Adjusted

Revenues Adjusted

(Loss) Adjusted

Revenues Adjusted

(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements — ( 126 ) — 75

Net realized losses on Fortitude Re funds withheld embedded derivative — ( 41 )

Net realized gains (losses) (c)

Net gain on divestitures and other — 3

Non-operating litigation reserves and settlements — 11

Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements — ( 9 )

Net loss reserve discount charge — ( 17 )

Pension expense related to lump sum payments to former employees — — — ( 8 )

Net results of businesses in run-off (d)

Non-operating pension expense — ( 5 )

Integration and transaction costs associated with acquiring or divesting businesses — ( 5 )

1 unchanged sentence

Non-recurring costs related to regulatory or accounting changes — ( 4 )

Revenues and pre-tax income $ 6,751 $ 649 $ 7,267 $ 1,100

Nine Months Ended September 30, 2024 2023

(in millions) Adjusted

Revenues Adjusted

(Loss) Adjusted

Revenues Adjusted

General Insurance

North America - Underwriting income $ 7,610 $ 424 (a)

$ 9,254 $ 886 (a)

International - Underwriting income 9,872 1,039 (a)

9,924 821 (a)

Net investment income 2,281 2,281 2,227 2,227

Total AIG Consolidated $ 1,105 $ 960

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 3.

Segment Information

Three Months Ended March 31, 2024

(in millions) Net

Earned Losses

Expenses (a)(b)

Income Reconciliation

North America Commercial $ 1,033 $ 1,983 $ 1,270 $ 220 $ 37 $ 220 $ 236

International Commercial 1,939 2,011 1,088 244 89 260 330

Global Personal 1,540 1,792 995 364 149 254 30

Total General Insurance $ 4,512 $ 5,786 $ 3,353 $ 828 $ 275 $ 734 $ 596 $ 762 $ 1,358

Interest expense — ( 115 )

Other Operations 76 ( 89 )

Other Operations before consolidation and eliminations 431 ( 496 ) 490 ( 815 )

AIG consolidation and eliminations ( 3 ) ( 3 ) ( 61 ) ( 20 )

Total Other Operations 428 ( 499 ) 429 ( 835 )

Elimination and consolidations 3 ( 1 )

Total 841 1,153

2 unchanged sentences

Other income (expense) - net 1 —

Gain (loss) on extinguishment of debt — ( 1 ) — ( 21 )

Net investment income on Fortitude Re funds withheld assets 39 39

1 unchanged sentence

Net realized losses on Fortitude Re funds withheld embedded derivative — ( 9 )

Net realized losses (b)

( 232 ) ( 234 ) ( 577 ) ( 573 )

Net gain (loss) on divestitures and other — 94 — 89

Non-operating litigation reserves and settlements — — 1 —

(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements — ( 66 ) — 112

Net loss reserve discount benefit (charge) — ( 131 ) — ( 85 )

Pension expense related to lump sum payments to former employees — — — ( 62 )

Net realized gains (losses) (c)

Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements — ( 2 )

Net loss reserve discount charge — ( 76 )

Net results of businesses in run-off (d)

Integration and transaction costs associated with acquiring or divesting businesses — 3

Restructuring and other costs (c)

— ( 630 ) — ( 264 )

Restructuring and other costs — ( 67 )

Non-recurring costs related to regulatory or accounting changes — ( 4 )

Net impact from elimination of international reporting lag (d)

Revenues and pre-tax income $ 20,074 $ 2,324 $ 21,412 $ 2,388

(a) General Insurance North America’s and General Insurance International’s Adjusted pre-tax income does not include Net investment income as the investment portfolio results are managed at the General Insurance level.

Net investment income is shown separately as a component of General Insurance’s total Adjusted pre-tax income results.

(b) 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 held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets).

(c) In the three and nine months ended September 30, 2024, Restructuring and other costs increased primarily as a result of employee-related costs, including severance, and real estate impairment charges.

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

For the three and nine months ended September 30, 2024, we recorded severance charges of $ 66 million and $ 351 million, respectively, and asset impairment of $ 53 million for the nine months ended September 30, 2024, as a result of restructuring activities.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 4.

Held-For-Sale Classification & Discontinued Operations Presentation

HELD-FOR-SALE CLASSIFICATION

We report and classify a business or a component of an entity as held-for-sale (Held-For-Sale Business) when management has approved the sale or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met.

A Held-For-Sale Business is recorded at the lower of its carrying amount or estimated fair value less cost to sell.

If the carrying amount of the business exceeds its estimated fair value, a loss is recognized.

Assets and liabilities related to a Held-For-Sale Business are reported in Assets held for sale and Liabilities held for sale, respectively, in our Condensed Consolidated Balance Sheets beginning in the period in which the business is classified as held-for-sale.

At September 30, 2024, businesses and assets reported and classified as held-for-sale primarily consisted of our global personal travel insurance and assistance business, described below.

On May 16, 2024, AIG entered into a stock purchase agreement with Corebridge and Nippon Life Insurance Company (Nippon), a mutual company (sougogaisha) organized under the laws of Japan, pursuant to which AIG agreed to sell 121,956,256 shares of common stock of Corebridge, representing approximately 20 percent of the issued and outstanding common stock at signing, to Nippon for aggregate consideration of $ 3.8 billion in cash.

The transaction is expected to close in the first quarter of 2025, subject to certain closing conditions, including the receipt of regulatory approvals.

As a result, Corebridge met the criteria to be presented as held-for-sale and discontinued operations.

In addition, on June 9, 2024, AIG met the requirements for the deconsolidation of Corebridge.

For further details, see — Discontinued Operations Presentation below.

Global Personal Travel Business

On June 26, 2024, AIG entered into a definitive agreement to sell its global individual personal travel insurance and assistance business to Zurich Insurance Group for $ 600 million in cash plus additional earn-out consideration.

The agreement includes the Travel Guard business and its servicing capabilities, excluding our travel insurance businesses in Japan and our AIG joint venture arrangement in India.

Travel coverages offered through AIG’s Accident & Health business are also excluded from this agreement.

The sale is expected to close by the end of 2024, subject to customary closing conditions, including regulatory approvals.

The results of our global individual personal travel insurance and assistance business are reported in General Insurance North America and International.

Total AIG Consolidated $ 979 $ 1,058

(a) These represent our significant expense categories of which amounts align with the segment-level information that is regularly provided to the CODMs.

(b) General operating expenses are primarily comprised of employee compensation and benefits, as well as professional fees.

(c) 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 held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets).

(d) In the fourth quarter of 2024, AIG realigned and began excluding the net results of run-off businesses previously reported in Other Operations from Adjusted pre-tax income.

Historical results have been recast to reflect these changes.

Discontinued Operations Presentation

DISCONTINUED OPERATIONS PRESENTATION

We present a business, or a component of an entity, as discontinued operations if a) it meets the held-for-sale criteria, or is disposed of by sale, or is disposed of other than by sale, and b) the disposal of the business, or component of an entity, represents a strategic shift that has (or will have) a major effect on AIG’s financial results.

In September 2022, AIG closed on the initial public offering of Corebridge.

Since September 2022 and through June 9, 2024, AIG sold portions of its interests in Corebridge through secondary public offerings.

Deconsolidation of Corebridge

On June 9, 2024, AIG held 48.4 percent of Corebridge common stock, waived its right to majority representation on the Corebridge Board of Directors and one of AIG's designees resigned from the Corebridge Board of Directors as of June 9, 2024 (the Deconsolidation Date).

As a result, AIG met the requirements for the deconsolidation of Corebridge.

The historical financial results of Corebridge, for all periods presented, are reflected in these Condensed Consolidated Financial Statements as discontinued operations.

On June 3, 2024, AIG closed on a secondary offering of 30 million shares of Corebridge common stock.

The sale was recorded as an equity transaction as AIG controlled Corebridge as of the transaction date.

The aggregate gross proceeds of the offering, before deducting underwriting discounts and commission and other expenses payable by AIG, were $ 876 million.

As a result of the offering, AIG recorded an increase of $ 261 million in Total AIG shareholders' equity.

On July 2, 2024, the underwriters exercised their option to purchase an additional 1.9 million shares, which reduced AIG's remaining investment in Corebridge reported in Other invested assets.

On August 5, 2024, AIG entered into a Share Repurchase Agreement with Corebridge.

The per share purchase price was $ 24.90 , the closing price of Corebridge’s common stock on the New York Stock Exchange on August 5, 2024.

This repurchase was completed on August 7, 2024 for an aggregate purchase price of approximately $ 200 million.

Due to share repurchases by Corebridge and sale of shares by AIG after the Deconsolidation Date, as of September 30, 2024, AIG held 48.6 percent of the outstanding common stock of Corebridge.

AIG | Third Quarter 2024 Form 10-Q

In the second quarter of 2024, AIG recognized a loss of $ 4.8 billion as a result of the deconsolidation, mainly due to the recognition of an accumulated comprehensive loss of $ 7.2 billion.

The loss was recorded as a component of discontinued operations.

The historical financial results of Corebridge are reflected in these Condensed Consolidated Financial Statements as discontinued operations.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 4.

Held-For-Sale Classification & Discontinued Operations Presentation

The assets and liabilities of Corebridge are classified as Assets of discontinued operations and Liabilities of discontinued operations in AIG’s Condensed Consolidated Balance Sheets as of December 31, 2023.

The results of operations of Corebridge are reported as discontinued operations for all periods presented in the Condensed Consolidated Statement of Income (Loss).

In the second quarter of 2024, AIG recognized a loss of $ 4.7 billion as a result of the deconsolidation, mainly due to the recognition of accumulated comprehensive loss of $ 7.2 billion.

The loss is recorded as a component of discontinued operations.

Corebridge was previously reported in Life and Retirement and Other Operations.

Subsequent to the Deconsolidation Date, AIG has elected the fair value option and will reflect its retained interest in Corebridge as an equity method investment in Other invested assets in AIG's Condensed Consolidated Balance Sheets using Corebridge’s stock price as its fair value.

Dividends received from Corebridge and changes in its stock price are recognized in Net investment income in AIG’s Condensed Consolidated Financial Statements.

The following provides financial information related to Corebridge as an equity method investee as if Corebridge was an equity method investee for the periods presented.

The “Equity method income (loss) related to Corebridge (based on fair value)” assumes a retained interest in Corebridge of 48.6 percent and is calculated based on the changes in Corebridge’s stock price for the periods presented.

Three Months Ended

September 30, Nine Months Ended

September 30,

Discontinued Operations Presentation

Post Deconsolidation of Corebridge

Subsequent to the Deconsolidation Date, AIG elected the fair value option and reflects its retained interest in Corebridge as an equity method investment in Other invested assets using Corebridge’s stock price as its fair value.

Dividends received from Corebridge and changes in its stock price are recognized in Net investment income.

Due to share repurchases by Corebridge and sale of shares by AIG after the Deconsolidation Date, as of March 31, 2025, AIG held 23.0 percent of the outstanding common stock of Corebridge.

The following provides Corebridge's pre-tax income as well as our equity method income (representing the sum of dividends received and changes in its stock price).

Three Months Ended March 31,

(in millions) 2025

Corebridge pre-tax income $ ( 1,594 ) $ 2,461 $ ( 122 ) $ 2,703

Equity method income (loss) related to Corebridge (based on fair value) $ 11 $ 584 $ 2,094 $ ( 87 )

The following table summarizes the components of assets and liabilities held-for-sale and assets and liabilities of discontinued operations on the Condensed Consolidated Balance Sheets at September 30, 2024 and December 31, 2023:

September 30, 2024 December 31, 2023

(in millions) Assets

for Sale Assets

for Sale Corebridge

Liabilities of

Fixed maturity securities:

Bonds available for sale, at fair value, net of allowance for credit losses $ — $ 14 $ 166,657

Other bond securities, at fair value — — 4,579

Equity securities, at fair value — — 63

Mortgage and other loans receivable, net of allowance for credit losses — — 46,732

Other invested assets — — 9,916

Short-term investments

Total investments 11 15 232,293

Cash 85 — 618

Accrued investment income — — 2,011

Premiums and other receivables, net of allowance for credit losses and disputes 32 9 709

Reinsurance assets - Fortitude Re, net of allowance for credit losses and disputes — — 26,772

Reinsurance assets - other, net of allowance for credit losses and disputes 3 2,519

Deferred income taxes ( 9 ) — 8,307

Deferred policy acquisition costs — — 10,782

Market risk benefit assets, at fair value — — 912

Other assets, net of allowance for credit losses (a)

Separate account assets, at fair value — — 91,005

Total assets held for sale/assets of discontinued operations $ 137 $ 30 $ 378,748

Liability for unpaid losses and loss adjustment expenses, including allowance for credit losses $ — $ 19 $ —

Unearned premiums — 7 65

Future policy benefits — — 57,946

Policyholder contract deposits — — 161,979

Market risk benefit liabilities, at fair value — — 5,705

Other policyholder funds — — 2,862

Fortitude Re funds withheld payable — — 25,957

Other liabilities 78 2 8,790

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 4.

Held-For-Sale Classification & Discontinued Operations Presentation

September 30, 2024 December 31, 2023

(in millions) Assets

for Sale Assets

for Sale Corebridge

Liabilities of

Short-term and long-term debt — — 9,420

Debt of consolidated investment entities — — 2,360

Separate account liabilities — — 91,005

Total liabilities held for sale/liabilities of discontinued operations $ 78 $ 28 $ 366,089

(a) Other assets, net of allowance for credit losses includes goodwill and other intangibles of $ 116 million and $ 3 million, respectively, for Corebridge at December 31, 2023.

Corebridge pre-tax loss $ ( 862 )

Equity method income related to Corebridge (based on fair value) $ 240

The following table presents the amounts related to the operations of Corebridge that have been reflected in Net income from discontinued operations:

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(in millions) 2024

2 unchanged sentences

Net investment income 2,924

Net realized gains (losses) — 1,216 ( 923 ) ( 464 )

Net realized losses ( 336 )

Other income 217

7 unchanged sentences

Interest expense 143

Net (gain) loss on divestitures and other — 2 ( 191 ) ( 52 )

Net gain on divestitures and other ( 5 )

Total benefits, losses and expenses 4,821

Income (loss) from discontinued operations before income tax expense (benefit) and loss on disposal of discontinued operations — 2,469 1,354 2,816

Income tax expense (benefit) — 420 226 341

Income (loss) from discontinued operations, net of income taxes before loss on disposal of discontinued operations — 2,049 1,128 2,475

Income from discontinued operations before income tax expense and loss on disposal of discontinued operations 993

Income tax expense 190

Income from discontinued operations, net of income taxes before loss on disposal of discontinued operations 803

Loss on disposition of operations, net of tax —

Income (loss) from discontinued operations, net of income taxes ( 24 ) 2,046 ( 3,580 ) 2,472

Net income (loss) from discontinued operations attributable to noncontrolling interests ( 2 ) 720 475 801

Net income (loss) from discontinued operations attributable to AIG $ ( 22 ) $ 1,326 $ ( 4,055 ) $ 1,671

AIG | Third Quarter 2024 Form 10-Q

Loss from discontinued operations, net of income taxes 803

Net income from discontinued operations attributable to noncontrolling interests 384

Net loss from discontinued operations attributable to AIG $ 419

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Held-For-Sale Classification & Discontinued Operations Presentation

DISCONTINUED OPERATIONS LOSS PRESENTATION

The loss recognized in the second quarter of 2024 for the deconsolidation of Corebridge includes (i) $ 8.5 billion of retained investment in Corebridge (Corebridge’s quoted stock price is used for fair value measurement, which is classified as level 1 in the fair value hierarchy), (ii) $ 817 million of certain other investments (considered level 3 in the fair value hierarchy) which are measured based on valuation techniques (i.e., third party appraisals) that use significant inputs (i.e., terminal capital rate and discount rate), and (iii) $ 378 million of an unsettled receivable.

For details on fair value hierarchy, see Note 5.

The loss on deconsolidation of Corebridge is calculated as follows:

(in millions)

Corebridge retained investment ( 48.4 % @ 28.90 per share at June 9, 2024)

Retained interest in certain investment entities and other assets 1,195

Net fair value of assets retained 9,697

Corebridge book value at June 9, 2024 12,392

Noncontrolling interests 5,732

Corebridge book value excluding noncontrolling interest 6,660

Gain on sale pre-tax 3,037

Tax expense 507

After tax gain 2,530

Reclassification adjustment of Accumulated other comprehensive loss at June 9, 2024 ( 7,214 )

Loss on sale of Corebridge - after-tax $ ( 4,684 )

Fair Value Measurements

FAIR VALUE MEASUREMENTS ON A RECURRING BASIS

11 unchanged sentences

In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS

The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used:

September 30, 2024 Level 1 Level 2 Level 3 Counterparty

March 31, 2025 Level 1 Level 2 Level 3 Counterparty

Collateral Total

26 unchanged sentences

Derivative assets (c)

Interest rate contracts — 305 — — — 305

Foreign exchange contracts

— 459 46 ( 225 ) ( 226 ) 54

Equity contracts

— — 31 — — 31

Credit contracts

— — 33 — — 33

Other contracts — — 1 — — 1

Counterparty netting and cash collateral

— — — ( 276 ) ( 241 ) ( 517 )

Total derivative assets

— 554 65 ( 276 ) ( 241 ) 102

Short-term investments

2 unchanged sentences

— — 129 — — 129

$ 14,033 $ 67,308 $ 4,169 $ ( 276 ) $ ( 241 ) $ 84,993

Total $ 8,779 $ 66,681 $ 3,179 $ ( 225 ) $ ( 226 ) $ 78,188

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

March 31, 2025 Level 1 Level 2 Level 3 Counterparty

Collateral Total

(in millions)

Derivative liabilities (c)

Interest rate contracts

— 500 46 ( 225 ) ( 240 ) 81

Foreign exchange contracts

— 255 — — — 255

Equity contracts

— — 31 — — 31

Credit contracts

— — 34 — — 34

Other contracts — — 1 — — 1

Counterparty netting and cash collateral

— — — ( 276 ) ( 209 ) ( 485 )

Total derivative liabilities

— 588 66 ( 276 ) ( 209 ) 169

Fortitude Re funds withheld payable

— — ( 79 ) — — ( 79 )

Other liabilities

1 unchanged sentence

Total $ — $ 500 $ 67 $ ( 225 ) $ ( 240 ) $ 102

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

December 31, 2024 Level 1 Level 2 Level 3 Counterparty

27 unchanged sentences

Derivative assets (c)

Interest rate contracts — 335 406 — — 741

Foreign exchange contracts

— 573 51 ( 270 ) ( 304 ) 50

Equity contracts

— 18 48 — — 66

Credit contracts

— — 33 — — 33

Other contracts — — 1 — — 1

Counterparty netting and cash collateral

— — — ( 450 ) ( 711 ) ( 1,161 )

Total derivative assets

— 803 489 ( 450 ) ( 711 ) 131

Short-term investments

2 unchanged sentences

— — 129 — — 129

$ 3,473 $ 69,731 $ 4,640 $ ( 450 ) $ ( 711 ) $ 76,683

Total $ 12,638 $ 63,919 $ 3,532 $ ( 270 ) $ ( 304 ) $ 79,515

Derivative liabilities (c)

Interest rate contracts

— 571 51 ( 270 ) ( 201 ) 151

Foreign exchange contracts

— 561 3 — — 564

Credit contracts

— 3 33 — — 36

Counterparty netting and cash collateral

— — — ( 450 ) ( 249 ) ( 699 )

Total derivative liabilities

— 916 36 ( 450 ) ( 249 ) 253

Fortitude Re funds withheld payable

3 unchanged sentences

(a) Represents netting of derivative exposures covered by qualifying master netting agreements.

(b) Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $ 3.4 billion and $ 3.8 billion as of September 30, 2024 and December 31, 2023, respectively.

As of September 30, 2024 , includes AIG's ownership interest in Corebridge of $ 8.1 billion on which AIG elected the fair value option.

(b) Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $ 3.4 billion and $ 3.3 billion as of March 31, 2025 and December 31, 2024, respectively.

As of March 31, 2025 and December 31, 2024, includes AIG's ownership interest in Corebridge of $ 4.0 billion and $ 3.8 billion, respectively, on which AIG elected the fair value option.

(d) Excludes $ 1 million and $ 15 million as of September 30, 2024 and December 31, 2023, respectively, of assets reclassified to Assets held for sale on the Condensed Consolidated Balance Sheets.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

1 unchanged sentence

CHANGES IN LEVEL 3 RECURRING FAIR VALUE MEASUREMENTS

The following tables present changes during the three and nine months ended September 30, 2024 and 2023 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets at September 30, 2024 and 2023:

(in millions) Fair Value

of Period Net Realized

in Income Other

Comprehensive

Income (Loss) Purchases,

Out Other Fair

Period Changes in

of Period Changes in

Unrealized Gains

Included in Other

Comprehensive

Income (Loss) for

Recurring Level 3

Instruments Held

at End of Period

Three Months Ended September 30, 2024

Bonds available for sale:

Obligations of states, municipalities and political subdivisions $ 4 $ — $ — $ — $ — $ — $ — $ 4 $ — $ —

7 — — — — — — 7 — —

Corporate debt

359 ( 3 ) 18 4 — — 7 385 — 14

2,016 ( 1 ) 110 ( 23 ) — — ( 7 ) 2,095 — 63

94 ( 1 ) 1 ( 12 ) — — — 82 — —

CLO/ABS 1,275 ( 11 ) 33 ( 314 ) — — — 983 — 23

Total bonds available for sale

3,755 ( 16 ) 162 ( 345 ) — — — 3,556 — 100

Other bond securities:

Corporate Debt 44 — — — — — 2 46 2 —

RMBS 49 3 — ( 2 ) — — 5 55 — —

CLO/ABS 145 3 — ( 1 ) — — — 147 3 —

Total other bond securities

238 6 — ( 3 ) — — 7 248 5 —

Equity securities

13 1 — 2 — — ( 3 ) 13 — —

Other invested assets

145 ( 3 ) — 5 — — 11 158 — —

130 — — ( 1 ) — — — 129 — —

$ 4,281 $ ( 12 ) $ 162 $ ( 342 ) $ — $ — $ 15 $ 4,104 $ 5 $ 100

(in millions) Fair Value

of Period Net

in Income Other

Comprehensive

Income (Loss) Purchases,

Out Other Fair

Period Changes in

of Period Changes in

Unrealized Gains

Included in Other

Comprehensive

Income (Loss) for

Recurring Level 3

Instruments Held

at End of Period

Derivative liabilities, net:

Interest rate contracts

$ ( 3 ) $ — $ — $ 3 $ — $ — $ — $ — $ — $ —

Equity contracts

( 35 ) — — ( 1 ) — — 36 — 2 —

Credit contracts

— 1 — — — — — 1 ( 1 ) —

Other contracts

( 1 ) — — — — — 1 — 1 —

Total derivative liabilities, net (a)

( 39 ) 1 — 2 — — 37 1 2 —

Fortitude Re funds withheld payable ( 154 ) 157 — ( 3 ) — — — — ( 153 ) —

Other Liabilities 99 — — — — — — 99 — —

Total $ ( 94 ) $ 158 $ — $ ( 1 ) $ — $ — $ 37 $ 100 $ ( 151 ) $ —

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

The following tables present changes during the three months ended March 31, 2025 and 2024 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets at March 31, 2025 and 2024:

(in millions) Fair Value

of Period Net Realized

of Year Net Realized

in Income Other

11 unchanged sentences

at End of Period

Three Months Ended September 30, 2023

Three Months Ended March 31, 2025

Bonds available for sale:

16 unchanged sentences

(in millions) Fair Value

of Period Net

in Income Other

11 unchanged sentences

at End of Period

Derivative liabilities, net:

Interest rate contracts $ ( 339 ) $ ( 174 ) $ — $ ( 20 ) $ — $ — $ — $ ( 533 ) $ 128 $ —

Foreign exchange contracts 2 ( 1 ) — 1 — — — 2 — —

Equity contracts ( 399 ) 178 — 91 — — — ( 130 ) ( 65 ) —

Credit contracts — 1 — ( 1 ) — — — — ( 1 ) —

Other contracts ( 1 ) ( 1 ) — 1 — — — ( 1 ) 1 —

Total derivative liabilities, net(a) ( 737 ) 3 — 72 — — — ( 662 ) 63 —

Fortitude Re funds withheld payable $ ( 128 ) $ 41 $ — $ 8 $ — $ — $ — $ ( 79 ) $ ( 2 ) $ —

1 unchanged sentence

Total $ ( 28 ) $ 41 $ — $ 8 $ — $ — $ — $ 21 $ ( 2 ) $ —

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

(in millions) Fair Value

13 unchanged sentences

at End of Period

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2024

Bonds available for sale:

11 unchanged sentences

Total other bond securities 234 ( 1 ) — 10 — — — 243 ( 2 ) —

Equity securities 14 1 — 2 — ( 1 ) ( 3 ) 13 1 —

Other invested assets 221 ( 16 ) — ( 34 ) — ( 13 ) — 158 ( 12 ) —

Other assets 243 — — ( 114 ) — — — 129 — —

$ 4,151 $ 8 $ 196 $ ( 782 ) $ 552 $ ( 67 ) $ 46 $ 4,104 $ ( 7 ) $ 56

(in millions) Fair Value

in Income Other

Comprehensive

Income (Loss) Purchases,

Out Other Fair

Period Changes in

of Period Changes in

Unrealized Gains

Included in Other

Comprehensive

Income (Loss) for

Recurring Level 3

Instruments Held

at End of Period

Derivative liabilities, net:

Interest rate contracts $ ( 406 ) $ 61 $ — $ 345 $ — $ — $ — $ — $ ( 3 ) $ —

Foreign exchange contracts 2 ( 2 ) — — — — — — — —

Equity contracts ( 48 ) ( 18 ) — 30 — — 36 — 10 —

Credit contracts — 1 — — — — — 1 ( 1 ) —

Other contracts ( 1 ) ( 1 ) — 1 — — 1 — 1 —

Total derivative liabilities, net (a)

( 453 ) 41 — 376 — — 37 1 7 —

Fortitude Re funds withheld payable ( 148 ) 158 — ( 10 ) — — — — ( 106 ) —

Other Liabilities 122 ( 2 ) — ( 21 ) — — — 99 — —

Total $ ( 479 ) $ 197 $ — $ 345 $ — $ — $ 37 $ 100 $ ( 99 ) $ —

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

15 unchanged sentences

at End of Period

Nine Months Ended September 30, 2023

Bonds available for sale:

Obligations of states, municipalities and political subdivisions $ 20 $ ( 1 ) $ 1 $ ( 16 ) $ — $ — $ — $ 4 $ — $ —

governments 2 — 1 ( 5 ) 7 ( 2 ) — 3 — 1

Corporate debt 879 ( 6 ) 5 ( 410 ) 138 ( 251 ) — 355 — ( 9 )

RMBS 1,884 85 11 ( 81 ) — ( 51 ) ( 28 ) 1,820 — 8

CMBS 207 ( 29 ) ( 1 ) 7 42 ( 172 ) — 54 — ( 15 )

CLO/ABS 1,483 ( 26 ) 39 ( 110 ) 17 ( 74 ) 15 1,344 — 1

Total bonds available for sale 4,475 23 56 ( 615 ) 204 ( 550 ) ( 13 ) 3,580 — ( 14 )

Other bond securities:

Corporate debt — 1 — 44 — — — 45 1 —

RMBS 65 2 — ( 17 ) — — — 50 ( 7 ) —

CLO/ABS 158 ( 1 ) — ( 14 ) 1 ( 3 ) 12 153 ( 30 ) —

Total other bond securities 223 2 — 13 1 ( 3 ) 12 248 ( 36 ) —

Equity securities 14 — — — — ( 1 ) — 13 — —

16 unchanged sentences

at End of Period

Derivative liabilities, net:

Interest rate contracts $ ( 311 ) $ ( 90 ) $ — $ ( 132 ) $ — $ — $ — $ ( 533 ) $ 146 $ —

Foreign exchange contracts — 1 — 1 — — — 2 ( 2 ) —

Equity contracts ( 271 ) 109 — 32 — — — ( 130 ) ( 49 ) —

Credit contracts — — — — — — — — ( 1 ) —

Other contracts ( 1 ) ( 2 ) — 2 — — — ( 1 ) 2 —

Total derivative liabilities, net (a)

Derivative liabilities, net (a)

$ ( 453 ) $ 52 $ — $ 218 $ — $ — $ — $ ( 183 ) $ 11 $ —

3 unchanged sentences

(a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

Net realized and unrealized gains and losses included in income related to Level 3 assets and liabilities shown above are reported in the Condensed Consolidated Statements of Income (Loss) as follows:

2 unchanged sentences

Gains (Losses) Total

Three Months Ended September 30, 2024

Bonds available for sale $ 25 $ ( 41 ) $ ( 16 )

Other bond securities 6 — 6

Equity securities 1 — 1

Other invested assets ( 3 ) — ( 3 )

Three Months Ended September 30, 2023

Bonds available for sale $ 40 $ ( 38 ) $ 2

Other bond securities ( 1 ) — ( 1 )

Other invested assets 4 ( 1 ) 3

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Bonds available for sale $ 8 $ ( 9 ) $ ( 1 )

1 unchanged sentence

Equity securities 1 — 1

Other invested assets ( 16 ) — ( 16 )

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Bonds available for sale $ 15 $ ( 6 ) $ 9

Other bond securities ( 1 ) — ( 1 )

Equity securities 2 — 2

Other invested assets ( 9 ) — ( 9 )

2 unchanged sentences

(Gains) Losses Total

Three Months Ended September 30, 2024

Derivative liabilities, net $ — $ 1 $ 1

Fortitude Re funds withheld payable — 157 157

Three Months Ended September 30, 2023

Derivative liabilities, net $ — $ 3 $ 3

Fortitude Re funds withheld payable — ( 57 ) ( 57 )

Other Liabilities — ( 6 ) ( 6 )

Nine Months Ended September 30, 2024

Derivative liabilities, net $ — $ 41 $ 41

Three Months Ended March 31, 2025

Fortitude Re funds withheld payable $ — $ 41 $ 41

Other Liabilities — ( 2 ) ( 2 )

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Derivative liabilities, net $ — $ 52 $ 52

1 unchanged sentence

Other Liabilities — ( 30 ) ( 30 )

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

The following table presents the gross components of purchases, sales, issuances and settlements, net, shown above, for the three and nine months ended September 30, 2024 and 2023 related to Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets:

(in millions) Purchases Sales Issuances

Settlements (a)

Purchases, Sales,

Issuances and

Settlements, Net (a)

Three Months Ended September 30, 2024

Bonds available for sale:

Corporate debt $ 10 $ ( 4 ) $ ( 2 ) $ 4

RMBS 87 ( 45 ) ( 65 ) ( 23 )

CMBS — ( 12 ) — ( 12 )

CLO/ABS 270 ( 563 ) ( 21 ) ( 314 )

Total bonds available for sale 367 ( 624 ) ( 88 ) ( 345 )

Other bond securities:

RMBS — — ( 2 ) ( 2 )

CLO/ABS — — ( 1 ) ( 1 )

Total other bond securities — — ( 3 ) ( 3 )

Equity securities 2 — — 2

Other invested assets 17 — ( 12 ) 5

Other assets — — ( 1 ) ( 1 )

Total $ 386 $ ( 624 ) $ ( 104 ) $ ( 342 )

Derivative liabilities, net $ — $ — $ 2 $ 2

Fortitude Re funds withheld payable — — ( 3 ) ( 3 )

Total $ — $ — $ ( 1 ) $ ( 1 )

Three Months Ended September 30, 2023

Bonds available for sale:

Obligations of states, municipalities and political subdivisions $ — $ ( 11 ) $ — $ ( 11 )

governments $ — $ — $ ( 3 ) $ ( 3 )

Corporate debt 5 — ( 68 ) ( 63 )

RMBS 18 ( 6 ) ( 75 ) ( 63 )

CMBS — ( 7 ) 13 6

CLO/ABS 76 ( 151 ) 48 ( 27 )

Total bonds available for sale 99 ( 175 ) ( 85 ) ( 161 )

Other bond securities:

RMBS — — ( 2 ) ( 2 )

CLO/ABS — ( 10 ) 9 ( 1 )

Total other bond securities — ( 10 ) 7 ( 3 )

Equity securities — ( 2 ) — ( 2 )

Other invested assets — — ( 2 ) ( 2 )

Other assets — — 1 1

Total $ 99 $ ( 187 ) $ ( 79 ) $ ( 167 )

Derivative liabilities, net $ ( 91 ) $ 3 $ 160 $ 72

Fortitude Re funds withheld payable — — ( 29 ) ( 29 )

Total $ ( 91 ) $ 3 $ 131 $ 43

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

The following table presents the gross components of purchases, sales, issuances and settlements, net, shown above, for the three months ended March 31, 2025 and 2024 related to Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets:

(in millions) Purchases Sales Issuances

3 unchanged sentences

Settlements, Net (a)

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Bonds available for sale:

Obligations of states, municipalities and political subdivisions $ 1 $ — $ — $ 1

governments 4 — ( 4 ) —

Corporate debt $ 3 $ ( 4 ) $ ( 124 ) $ ( 125 )

9 unchanged sentences

Other invested assets — — ( 24 ) ( 24 )

Other assets — — ( 114 ) ( 114 )

Total $ 163 $ ( 52 ) $ ( 237 ) $ ( 126 )

Derivative liabilities, net $ — $ — $ 376 $ 376

Fortitude Re funds withheld payable $ — $ — $ 8 $ 8

Other Liabilities — — ( 21 ) ( 21 )

Total $ — $ — $ 8 $ 8

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Bonds available for sale:

Obligations of states, municipalities and political subdivisions $ 1 $ — $ — $ 1

governments — — ( 5 ) ( 5 )

Corporate Debt 6 ( 3 ) ( 41 ) ( 38 )

RMBS — ( 1 ) ( 74 ) ( 75 )

CMBS 1 ( 12 ) 18 7

CLO/ABS 60 ( 2 ) ( 77 ) ( 19 )

1 unchanged sentence

Other bond securities:

Corporate debt 20 — 24 44

RMBS 3 — ( 1 ) 2

1 unchanged sentence

Total other bond securities 14 — ( 4 ) 10

Equity securities 5 ( 2 ) ( 1 ) 2

Other invested assets 1 — ( 4 ) ( 3 )

4 unchanged sentences

Total $ — $ — $ 238 $ 238

(a) There were no issuances during the three and nine months ended September 30, 2024 and 2023.

(a) There were no issuances during the three months ended March 31, 2025 and 2024.

Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above.

As a result, the unrealized gains (losses) on instruments held at September 30, 2024 and 2023 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities).

AIG | Third Quarter 2024 Form 10-Q

As a result, the unrealized gains (losses) on instruments held at March 31, 2025 and 2024 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities).

Transfers of Level 3 Assets and Liabilities

The Net realized and unrealized gains (losses) included in income (loss) or Other comprehensive income (loss) (OCI) as shown in the table above excludes $ 2 million and $( 3 ) million of net gains (losses) related to assets and liabilities transferred into Level 3 during the three months ended March 31, 2025 and 2024, respectively, and includes $ 5 million and $ 0 million of net gains (losses) related to assets and liabilities transferred out of Level 3 during the three months ended March 31, 2025 and 2024, respectively.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

Transfers of Level 3 Assets and Liabilities

The Net realized and unrealized gains (losses) included in income (loss) or Other comprehensive income (loss) (OCI) as shown in the table above excludes $ 0 million and $( 27 ) million of net gains (losses) related to assets and liabilities transferred into Level 3 during the three and nine months ended September 30, 2024, respectively, and includes $ 0 million and $ 1 million of net gains (losses) related to assets and liabilities transferred out of Level 3 during the three and nine months ended September 30, 2024, respectively.

The Net realized and unrealized gains (losses) included in income (loss) or OCI as shown in the table above excludes $( 5 ) million and $( 4 ) million of net gains (losses) related to assets and liabilities transferred into Level 3 during the three and nine months ended September 30, 2023, respectively, and includes $ 0 million and $( 9 ) million of net gains (losses) related to assets and liabilities transferred out of Level 3 during the three and nine months ended September 30, 2023, respectively.

Transfers of Level 3 Assets

There were no transfers into Level 3 assets during the three months ended September 30, 2024.

During the nine months ended September 30, 2024 and three and nine months ended September 30, 2023, transfers into Level 3 assets primarily included certain investments in private placement corporate debt, commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), collateralized loan obligations (CLO)/asset-backed securities (ABS) and equity securities.

During the three months ended March 31, 2025 and 2024, transfers into Level 3 assets primarily included certain investments in private placement corporate debt, commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), collateralized loan obligations (CLO)/asset-backed securities (ABS) and equity securities.

Transfers of private placement corporate debt and certain ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity.

The transfers of investments in CMBS, RMBS, CLO and certain ABS into Level 3 assets were due to diminished market transparency and liquidity for individual security types.

There were no transfers out of Level 3 assets during the three months ended September 30, 2024.

During the nine months ended September 30, 2024 and three and nine months ended September 30, 2023, transfers out of Level 3 assets primarily included certain investments in private placement corporate debt, CMBS, RMBS, CLO/ABS, municipal bonds and equity securities.

During the three months ended March 31, 2025 and 2024, transfers out of Level 3 assets primarily included certain investments in private placement corporate debt, CMBS, RMBS, CLO/ABS, municipal bonds and equity securities.

Transfers of private placement corporate debt out of Level 3 assets were based on consideration of market liquidity as well as related transparency of pricing and associated observable inputs for these investments.

1 unchanged sentence

Transfers of Level 3 Liabilities

There were no significant transfers of derivative or other liabilities into or out of Level 3 for the three and nine months ended September 30, 2024 and 2023.

There were no significant transfers of derivative or other liabilities into or out of Level 3 for the three months ended March 31, 2025 and 2024.

QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS

2 unchanged sentences

(in millions) Fair Value at

September 30, 2024 Valuation

March 31, 2025 Valuation

Technique Unobservable Input (b)

8 unchanged sentences

CMBS 5 Discounted cash flow Yield 5.72 % - 8.94 % ( 7.21 %)

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

(in millions) Fair Value at

15 unchanged sentences

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

The ranges of reported inputs for Obligations of states, municipalities and political subdivisions, Corporate debt, RMBS, CLO/ABS, and CMBS valued using a discounted cash flow technique consist of one standard deviation in either direction from the value‑weighted average.

14 unchanged sentences

In general, increases in the yield would decrease the fair value of investments, and conversely, decreases in the yield would increase the fair value of investments.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

Embedded Derivatives within Reinsurance Contracts

The fair value of embedded derivatives associated with funds withheld reinsurance contracts is determined based upon a total return swap technique with reference to the fair value of the investments held by AIG related to AIG’s funds withheld payable.

The fair value of the underlying assets is generally based on market observable inputs using industry standard valuation techniques.

The valuation also requires certain significant inputs, which are generally not observable, and accordingly, the valuation is considered Level 3 in the fair value hierarchy.

INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE

1 unchanged sentence

For these investments, which are measured at fair value on a recurring basis, we use the net asset value per share to measure fair value.

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(in millions) Investment Category Includes Fair Value Using NAV Per Share (or its equivalent) Unfunded Commitments Fair Value Using NAV Per Share (or its equivalent) Unfunded Commitments

8 unchanged sentences

Total private equity funds 3,233 1,172 3,105 792

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

March 31, 2025 December 31, 2024

(in millions) Investment Category Includes Fair Value Using NAV Per Share (or its equivalent) Unfunded Commitments Fair Value Using NAV Per Share (or its equivalent) Unfunded Commitments

Event-driven Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations 12 — 11 —

5 unchanged sentences

Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one-year or two-year increments.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

FAIR VALUE OPTION

The following table presents the gains or losses recorded related to the eligible instruments for which we elected the fair value option:

Gain (Loss) Three Months

Ended September 30, Gain (Loss) Nine Months

Ended September 30,

Three Months Ended March 31, Gain (Loss)

(in millions) 2025 2024

Other bond securities (a)

$ 20 $ ( 5 ) $ 27 $ 4

Alternative investments (b)

76 41 184 171

Retained investment in Corebridge (c)

( 35 ) — 30 —

Total gain (loss) $ 244 $ 82

9 unchanged sentences

(in millions) Level 1 Level 2 Level 3 Total

September 30, 2024

March 31, 2025

Mortgage and other loans receivable $ — $ 339 $ 3,333 $ 3,672 $ 3,737

Other invested assets — 546 5 551 551

Short-term investments (a)

— 3,026 — 3,026 3,026

Short-term investments

— 4,389 — 4,389 4,389

Cash 1,393 — — 1,393 1,393

Other assets 13 — — 13 13

2 unchanged sentences

Debt of consolidated investment entities — — 157 157 157

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 5.

Fair Value Measurements

Estimated Fair Value Carrying

10 unchanged sentences

Debt of consolidated investment entities — — 158 158 158

(a) Excludes $ 10 million at September 30, 2024 reclassified to Assets held for sale on the Condensed Consolidated Balance Sheets.

(b) Excludes $ 85 million at September 30, 2024 reclassified to Assets held for sale on the Condensed Consolidated Balance Sheets.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 6.

SECURITIES AVAILABLE FOR SALE

1 unchanged sentence

(in millions) Amortized

September 30, 2024

March 31, 2025

Bonds available for sale:

25 unchanged sentences

Changes in the allowance for credit losses are recorded through Net realized gains (losses) and are not recognized in OCI.

(b) At September 30, 2024 and December 31, 2023, the fair value of bonds available for sale held by us that were below investment grade or not rated totaled $ 3.1 billion or 5 percent and $ 5.2 billion or 8 percent, respectively.

(b) At March 31, 2025 and December 31, 2024, the fair value of bonds available for sale held by us that were below investment grade or not rated totaled $ 5.5 billion or 8 percent and $ 3.6 billion or 6 percent, respectively.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 6.

Securities Available for Sale in a Loss Position for Which No Allowance for Credit Loss Has Been Recorded

2 unchanged sentences

(in millions) Fair

September 30, 2024

March 31, 2025

Bonds available for sale:

7 unchanged sentences

Total bonds available for sale $ 18,176 $ 374 $ 15,514 $ 2,223 $ 33,690 $ 2,597

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 6.

Less than 12 Months 12 Months or More Total

10 unchanged sentences

Total bonds available for sale $ 21,662 $ 428 $ 18,751 $ 2,655 $ 40,413 $ 3,083

At September 30, 2024, we held 10,479 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 8,111 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more).

At March 31, 2025, we held 10,707 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 5,239 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more).

At December 31, 2024, we held 12,274 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 5,984 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more).

We did not recognize the unrealized losses in earnings on these fixed maturity securities at September 30, 2024 because it was determined that such losses were due to non-credit factors.

We did not recognize the unrealized losses in earnings on these fixed maturity securities at March 31, 2025 because it was determined that such losses were due to non-credit factors.

Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis.

For fixed maturity securities with significant declines, we performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, liquidity position, expected defaults, industry and sector analysis, forecasts and available market data.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 6.

Contractual Maturities of Fixed Maturity Securities Available for Sale

The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity:

September 30, 2024 Total Fixed Maturity Securities

March 31, 2025 Total Fixed Maturity Securities

Available for Sale

9 unchanged sentences

The following table presents the gross realized gains and gross realized losses from sales or maturities of our available for sale securities:

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

(in millions) Gross

Fixed maturity securities $ 16 $ 278 $ 15 $ 116

For the three and nine months ended September 30, 2024, the aggregate fair value of available for sale securities sold was $ 1.9 billion and $ 6.9 billion, respectively, which resulted in net realized gains (losses) of $( 84 ) million and $( 354 ) million, respectively.

Included within the net realized gains (losses) are $( 18 ) million and $( 34 ) million of net realized gains (losses) for the three and nine months ended September 30, 2024, respectively, which relate to Fortitude Re funds withheld assets.

These net realized gains (losses) are included in Net realized gains (losses) on Fortitude Re funds withheld assets.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 6.

For the three and nine months ended September 30, 2023, the aggregate fair value of available for sale securities sold was $ 2.5 billion and $ 13.2 billion, respectively, which resulted in net realized gains (losses) of $( 156 ) million and $( 615 ) million, respectively.

Included within the net realized gains (losses) are $( 4 ) million and $( 63 ) million of net realized gains (losses) for the three and nine months ended September 30, 2023, respectively, which relate to Fortitude Re funds withheld assets.

For the three months ended March 31, 2025 and 2024, the aggregate fair value of available for sale securities sold was $ 4.8 billion and $ 2.4 billion, respectively, which resulted in net realized gains (losses) of $( 262 ) million and $( 101 ) million, respectively.

Included within the net realized gains (losses) are $( 7 ) million and $( 15 ) million of net realized gains (losses) for the three months ended March 31, 2025 and 2024, respectively, which relate to Fortitude Re funds withheld assets.

These net realized gains (losses) are included in Net realized gains (losses) on Fortitude Re funds withheld assets.

1 unchanged sentence

The following table presents the fair value of fixed maturity securities measured at fair value based on our election of the fair value option, which are reported in the other bond securities caption in the financial statements, and equity securities measured at fair value:

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

Value Percent

14 unchanged sentences

Total $ 1,487 100 % $ 1,449 100 %

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 6.

OTHER INVESTED ASSETS

The following table summarizes the carrying amounts of other invested assets:

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

Alternative investments (a)

3 unchanged sentences

Total $ 9,987 $ 9,828

(a) At September 30, 2024, includes hedge funds of $ 187 million and private equity funds of $ 3.9 billion.

(a) At March 31, 2025, includes hedge funds of $ 200 million and private equity funds of $ 3.7 billion.

At December 31, 2024, included hedge funds of $ 187 million and private equity funds of $ 3.6 billion.

1 unchanged sentence

Also includes investments in real estate, net of accumulated depreciation.

At September 30, 2024 and December 31, 2023, the accumulated depreciation was $ 167 million and $ 161 million, respectively.

At March 31, 2025 and December 31, 2024, the accumulated depreciation was $ 164 million and $ 161 million, respectively.

(b) All other investments include mainly bank deposits with a maturity greater than one year and investments in joint ventures with strategic partners.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 6.

NET INVESTMENT INCOME

The following table presents the components of Net investment income:

Three Months Ended September 30, 2024 2023

(in millions) Excluding Fortitude

Withheld Assets Fortitude Re

Funds Withheld

Assets Total Excluding Fortitude

Withheld Assets Fortitude Re

Funds Withheld

Available for sale fixed maturity securities, including short-term investments $ 746 $ 25 $ 771 $ 731 $ 22 $ 753

Other fixed maturity securities

4 16 20 ( 1 ) ( 4 ) ( 5 )

Equity securities 60 — 60 31 — 31

Interest on mortgage and other loans 52 9 61 73 10 83

Alternative investments (a)

42 — 42 19 — 19

Other investments (b)

63 1 64 43 1 44

Total investment income 967 51 1,018 896 29 925

Investment expenses 45 — 45 69 — 69

Net investment income $ 922 $ 51 $ 973 $ 827 $ 29 $ 856

Nine Months Ended September 30, 2024 2023

Three Months Ended March 31, 2025 2024

(in millions) Excluding Fortitude

19 unchanged sentences

Private equity funds are generally reported on a one-quarter lag.

(b) Includes dividends received from Corebridge and changes in its stock price of $ 65 million and $( 35 ) million, respectively, for the three months ended September 30, 2024, and $ 133 million and $ 30 million, respectively, for the nine months ended September 30, 2024.

(b) Includes dividends received from Corebridge and changes in its stock price of $ 31 million and $ 209 million, respectively, for the three months ended March 31, 2025.

NET REALIZED GAINS AND LOSSES

The following table presents the components of Net realized gains (losses):

Three Months Ended September 30, 2024 2023

(in millions) Excluding

Assets Fortitude

Assets Total Excluding

Assets Fortitude

Sales of fixed maturity securities $ ( 66 ) $ ( 18 ) $ ( 84 ) $ ( 152 ) $ ( 4 ) $ ( 156 )

Change in allowance for credit losses on fixed maturity securities 1 ( 1 ) — ( 7 ) — ( 7 )

Change in allowance for credit losses on loans ( 3 ) ( 1 ) ( 4 ) ( 16 ) 3 ( 13 )

Foreign exchange transactions 65 1 66 ( 30 ) ( 5 ) ( 35 )

All other derivatives and hedge accounting 7 ( 2 ) 5 ( 20 ) 6 ( 14 )

Sales of alternative investments ( 18 ) — ( 18 ) 25 — 25

Other 22 3 25 11 ( 3 ) 8

Net realized gains (losses) – excluding Fortitude Re funds withheld embedded derivative 8 ( 18 ) ( 10 ) ( 189 ) ( 3 ) ( 192 )

Net realized gains (losses) on Fortitude Re funds withheld embedded derivative — ( 157 ) ( 157 ) — 57 57

Net realized gains (losses) $ 8 $ ( 175 ) $ ( 167 ) $ ( 189 ) $ 54 $ ( 135 )

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 6.

Nine Months Ended September 30, 2024 2023

Three Months Ended March 31, 2025 2024

(in millions) Excluding

12 unchanged sentences

Net realized gains (losses) $ ( 60 ) $ ( 43 ) $ ( 103 ) $ ( 59 ) $ ( 28 ) $ ( 87 )

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 6.

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS

The following table presents the increase (decrease) in unrealized appreciation (depreciation) of our available for sale securities and other investments:

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(in millions) 2025 2024

Increase (decrease) in unrealized appreciation (depreciation) of investments:

Fixed maturity securities* $ 322 $ ( 132 )

Other investments ( 19 ) — ( 58 ) —

Total increase (decrease) in unrealized appreciation (depreciation) of investments* $ 1,597 $ ( 670 ) $ 1,441 $ 159

* Excludes net unrealized gains and losses attributable to businesses held for sale or reclassified to discontinued operations at September 30, 2024 and 2023.

* Excludes net unrealized gains and losses attributable to businesses held for sale or reclassified to discontinued operations at March 31, 2024.

The following table summarizes the unrealized gains and losses recognized in Net investment income during the reporting period on equity securities and other investments still held at the reporting date:

Three Months Ended September 30, 2024 2023

Three Months Ended March 31, 2025 2024

(in millions) Equities Other Invested Assets* Total Equities Other Invested Assets Total

1 unchanged sentence

Net gains (losses) recognized during the period on equity securities and other investments sold during the period 13 ( 1 ) 12 40 ( 1 ) 39

Unrealized gains recognized during the reporting period on equity securities and other investments still held at the reporting date $ 52 $ 42 $ 94 $ 19 $ 54 $ 73

Nine Months Ended September 30, 2024 2023

(in millions) Equities Other Invested Assets* Total Equities Other Invested Assets Total

Net gains recognized during the period on equity securities and other investments $ 144 $ 234 $ 378 $ 93 $ 189 $ 282

Net gains recognized during the period on equity securities and other investments sold during the period 51 24 75 88 1 89

Unrealized gains recognized during the reporting period on equity securities and other investments still held at the reporting date $ 93 $ 210 $ 303 $ 5 $ 188 $ 193

* Includes unrealized gains (losses) on AIG’s ownership interest in Corebridge of $( 35 ) million and $ 30 million in the three and nine months ended September 30, 2024, respectively.

Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date $ ( 4 ) $ 234 $ 230 $ 48 $ 84 $ 132

* Includes unrealized gains (losses) on AIG’s ownership interest in Corebridge of $ 209 million in the three months ended March 31, 2025.

EVALUATING INVESTMENTS FOR AN ALLOWANCE FOR CREDIT LOSSES AND IMPAIRMENTS

For a discussion of our policy for evaluating investments for an allowance for credit losses, see Note 6 to the Consolidated Financial Statements in the 2024 Annual Report.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 6.

Credit Impairments

The following table presents a rollforward of the changes in allowance for credit losses on available for sale fixed maturity securities by major investment category:

Three Months Ended September 30, 2024 2023

(in millions) Structured Non-

Structured Total Structured Non-

Structured Total

Balance, beginning of period $ 6 $ 27 $ 33 $ 7 $ 27 $ 34

Securities for which allowance for credit losses was not previously recorded 2 — 2 2 19 21

Securities sold during the period — — — ( 1 ) ( 6 ) ( 7 )

Addition to (release of) the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intent to sell before recovery of amortized cost basis 4 ( 6 ) ( 2 ) 2 ( 16 ) ( 14 )

Write-offs charged against the allowance — — — — ( 2 ) ( 2 )

Other — 7 7 1 ( 3 ) ( 2 )

Balance, end of period $ 12 $ 28 $ 40 $ 11 $ 19 $ 30

Nine Months Ended September 30, 2024 2023

Three Months Ended March 31, 2025 2024

(in millions) Structured Non-

6 unchanged sentences

Write-offs charged against the allowance — ( 8 ) ( 8 ) — ( 8 ) ( 8 )

Other — 9 9 1 ( 4 ) ( 3 )

Balance, end of period $ 11 $ 19 $ 30 $ 3 $ 25 $ 28

10 unchanged sentences

• Expected prepayment speeds.

Subsequent to the acquisition date, the PCD assets follow the same accounting as other structured securities that are not high credit quality.

We did not purchase securities with more than insignificant credit deterioration since their origination during the nine months ended September 30, 2024 and 2023.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 6.

Subsequent to the acquisition date, the PCD assets follow the same accounting as other structured securities that are not high credit quality.

We did not purchase securities with more than insignificant credit deterioration since their origination during the three months ended March 31, 2025 and 2024.

PLEDGED INVESTMENTS

7 unchanged sentences

At the termination of the transactions, we and our counterparties are obligated to return the amounts borrowed and the securities transferred, respectively.

The following table presents the fair value of securities pledged to counterparties under secured financing transactions, including repurchase and securities lending agreements:

(in millions) September 30, 2024 December 31, 2023

Fixed maturity securities available for sale $ — $ 106

At September 30, 2024 and December 31, 2023, amounts borrowed under repurchase and securities lending agreements totaled $ 0 million and $ 107 million, respectively.

The following table presents the fair value of securities pledged under our repurchase agreements by collateral type and by remaining contractual maturity:

Remaining Contractual Maturity of the Agreements

(in millions) Overnight

Continuous up to

30 days 31 - 90

days 91 - 364

days 365 days

or greater Total

December 31, 2023

Bonds available for sale:

governments $ — $ 106 $ — $ — $ — $ 106

Corporate debt — — — — — —

Total $ — $ 106 $ — $ — $ — $ 106

We also enter into agreements in which securities are purchased by us under agreements to resell (reverse repurchase agreements), which are accounted for as secured financing transactions and reported as short-term investments or other assets, depending on their terms.

2 unchanged sentences

The following table presents information on the fair value of securities pledged to us under reverse repurchase agreements:

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

Securities collateral pledged to us $ 2,257 $ 2,853

At September 30, 2024 and December 31, 2023, the carrying value of reverse repurchase agreements totaled $ 965 million and $ 1.1 billion, respectively.

At March 31, 2025 and December 31, 2024, the carrying value of reverse repurchase agreements totaled $ 2.2 billion and $ 2.8 billion, respectively.

All secured financing transactions are collateralized and margined on a daily basis consistent with market standards and subject to enforceable master netting arrangements with rights of set off.

We do not currently offset any such transactions.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 6.

Insurance – Statutory and Other Deposits

The total carrying value of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance contracts, was $ 8.2 billion and $ 8.4 billion at September 30, 2024 and December 31, 2023, respectively.

The total carrying value of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements and certain reinsurance contracts, was $ 7.9 billion and $ 7.8 billion at March 31, 2025 and December 31, 2024, respectively.

Other Pledges and Restrictions

Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs.

We owned an aggregate of $ 13 million and $ 15 million of stock in FHLBs at September 30, 2024 and December 31, 2023, respectively.

In addition, our subsidiaries have pledged securities available for sale with a fair value of $ 1.7 billion at September 30, 2024 and $ 1.7 billion at December 31, 2023.

Investments held in escrow accounts or otherwise subject to restriction as to their use were $ 164 million and $ 164 million, comprised of bonds available for sale and short-term investments at September 30, 2024 and December 31, 2023, respectively.

We owned an aggregate of $ 13 million and $ 13 million of stock in FHLBs at March 31, 2025 and December 31, 2024, respectively.

In addition, our subsidiaries have pledged securities available for sale with a fair value of $ 1.8 billion at March 31, 2025 and $ 1.6 billion at December 31, 2024.

Investments held in escrow accounts or otherwise subject to restriction as to their use were $ 73 million and $ 73 million, comprised of bonds available for sale and short-term investments at March 31, 2025 and December 31, 2024, respectively.

Reinsurance transactions between AIG and Fortitude Re were structured as modified coinsurance (modco) and loss portfolio transfer arrangements with funds withheld.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 7.

Lending Activities

The following table presents the composition of Mortgage and other loans receivable, net:

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

Commercial mortgages (a)

7 unchanged sentences

$ 3,737 $ 3,868

(a) Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in California and New York representing the largest geographic concentrations (aggregating approximately 12 percent and 10 percent, respectively, at September 30, 2024 and 13 percent and 10 percent, respectively, at December 31, 2023).

(b) There were no loans that were held-for-sale carried at lower of cost or market as of September 30, 2024 and December 31, 2023.

(c) Excludes $ 37.6 billion at both September 30, 2024 and December 31, 2023 of loans receivable from AIG Financial Products Corp.

(a) Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in California and New York representing the largest geographic concentrations (aggregating approximately 14 percent and 11 percent, respectively, at March 31, 2025 and 14 percent and 12 percent, respectively, at December 31, 2024).

(b) There were no loans that were held-for-sale carried at lower of cost or market as of March 31, 2025 and December 31, 2024.

(c) Excludes $ 37.6 billion at both March 31, 2025 and December 31, 2024 of loans receivable from AIG Financial Products Corp.

(AIGFP), which has a full allowance for credit losses, recognized upon the deconsolidation of AIGFP.

For additional information, see Note 1 to the Consolidated Financial Statements in the 2024 Annual Report.

(d) Does not include allowance for credit losses of $ 5 million and $ 9 million, respectively, at September 30, 2024 and December 31, 2023, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

(d) Does not include allowance for credit losses of $ 8 million at both March 31, 2025 and December 31, 2024, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

Interest income is not accrued when payment of contractual principal and interest is not expected.

1 unchanged sentence

Accrual of interest income is generally resumed when delinquent contractual principal and interest is repaid or when a portion of the delinquent contractual payments are made and the ongoing required contractual payments have been made for an appropriate period.

As of September 30, 2024 and December 31, 2023, $ 296 million and $ 73 million, respectively, of commercial mortgage loans were placed on nonaccrual status.

As of March 31, 2025 and December 31, 2024, $ 259 million and $ 252 million, respectively, of commercial mortgage loans were placed on nonaccrual status.

Accrued interest is presented separately and is included in Accrued investment income on the Condensed Consolidated Balance Sheets.

As of September 30, 2024 and December 31, 2023, accrued interest receivable was $ 21 million and $ 21 million, respectively, associated with commercial mortgage loans.

As of March 31, 2025 and December 31, 2024, accrued interest receivable was $ 16 million and $ 15 million, respectively, associated with commercial mortgage loans.

A significant majority of commercial mortgages in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions.

2 unchanged sentences

Nonperforming loans were not significant for any of the periods presented.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 7.

Lending Activities

CREDIT QUALITY OF COMMERCIAL MORTGAGES

The following table presents debt service coverage ratios (a) for commercial mortgages by year of vintage:

September 30, 2024 2024 2023 2022 2021 2020 Prior Total

March 31, 2025 2025 2024 2023 2022 2021 Prior Total

(in millions)

9 unchanged sentences

Total commercial mortgages $ 146 $ 494 $ 200 $ 612 $ 79 $ 1,774 $ 3,305

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 7.

Lending Activities

The following table presents loan-to-value ratios (b) for commercial mortgages by year of vintage:

September 30, 2024 2024 2023 2022 2021 2020 Prior Total

March 31, 2025 2025 2024 2023 2022 2021 Prior Total

(in millions)

12 unchanged sentences

(a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest.

Our weighted average debt service coverage ratio was 1.9 x and 1.8 x at September 30, 2024 and December 31, 2023, respectively.

Our weighted average debt service coverage ratio was 1.8 x at both March 31, 2025 and December 31, 2024.

The debt service coverage ratios are updated when additional relevant information becomes available.

(b) The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan.

Our weighted average loan-to-value ratio was 64 percent and 62 percent at September 30, 2024 and December 31, 2023, respectively.

Our weighted average loan-to-value ratio was 67 percent and 65 percent at March 31, 2025 and December 31, 2024, respectively.

The loan-to-value ratios have been updated within the last three months to reflect the current carrying values of the loans.

3 unchanged sentences

(dollars in millions) Apartments Offices Retail Industrial Hotel Others Total

September 30, 2024

March 31, 2025

Past Due Status:

5 unchanged sentences

Allowance for credit losses $ 2 $ 105 $ 33 $ 4 $ 10 $ 1 $ 155 5 %

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 7.

Lending Activities

Loans Class Percent

10 unchanged sentences

For a discussion of our accounting policy for evaluating Mortgage and other loans receivable for impairment, see Note 7 to the Consolidated Financial Statements in the 2024 Annual Report.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 7.

Lending Activities

The following table presents a rollforward of the changes in the allowance for credit losses on Mortgage and other loans receivable (a)(b) :

Three Months Ended September 30, 2024

(in millions) Commercial

Mortgages Other

Loans Total Commercial

Mortgages Other

Allowance, beginning of period $ 162 $ 1 $ 163 $ 116 $ 3 $ 119

Addition to (release of) allowance for loan losses 3 1 4 17 — 17

Allowance, end of period $ 165 $ 2 $ 167 $ 133 $ 3 $ 136

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

(in millions) Commercial

3 unchanged sentences

Allowance, beginning of year $ 163 $ 1 $ 164 $ 138 $ 2 $ 140

Loans charged off — — — ( 2 ) — ( 2 )

Net charge-offs — — — ( 2 ) — ( 2 )

Addition to (release of) allowance for loan losses ( 8 ) ( 1 ) ( 9 ) 12 1 13

1 unchanged sentence

$ 155 $ — $ 155 $ 150 $ 3 $ 153

(a) Does not include allowance for credit losses of $ 5 million and $ 9 million at September 30, 2024 and 2023, respectively, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

(a) D oes not include allowance for credit losses of $ 8 million and $ 6 million at March 31, 2025 and 2024, respectively, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

(b) Excludes $ 37.6 billion of loan receivable from AIGFP, which has a full allowance for credit losses, recognized upon the deconsolidation of AIGFP.

11 unchanged sentences

therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 7.

Lending Activities

We assess whether a borrower is experiencing financial difficulty based on a variety of factors, including the borrower’s current default on any of its outstanding debt, the probability of a default on any of its debt in the foreseeable future without the modification, the insufficiency of the borrower’s forecasted cash flows to service any of its outstanding debt (including both principal and interest), and the borrower’s inability to access alternative third party financing at an interest rate that would be reflective of current market conditions for a non-troubled debtor.

During the nine months ended September 30, 2024, commercial mortgage loans with an amortized cost of $ 5 million supporting the funds withheld arrangements with Fortitude Re were granted term extensions.

There were no loans that had defaulted during the nine months ended September 30, 2024 and 2023, that had been previously modified with borrowers experiencing financial difficulties.

There were no loans that had defaulted during the three months ended March 31, 2025 and 2024, that had been previously modified with borrowers experiencing financial difficulties.

AIG closely monitors the performance of the loans modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

All loans with borrowers experiencing financial difficulty that have been modified in the 12 months prior to September 30, 2024 are current and performing in conjunction with their modified terms.

All loans with borrowers experiencing financial difficulty that were modified in the 12 months prior to March 31, 2025 are current and performing in conjunction with their modified terms.

Fortitude Re is the reinsurer of the majority of AIG’s run-off operations.

3 unchanged sentences

AIG has established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing reserves for the insurance coverage that Fortitude Re has assumed.

The funds withheld payable contains an embedded derivative and changes in fair value of the embedded derivative related to the funds withheld payable are recognized in earnings through Net realized gains (losses).

The funds withheld payable contains an embedded derivative and changes in fair value of the embedded derivative related to the

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 8.

funds withheld payable are recognized in earnings through Net realized gains (losses).

This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements.

As of September 30, 2024, $ 3.5 billion of reserves related to business written by multiple wholly-owned AIG subsidiaries, had been ceded to Fortitude Re under these reinsurance transactions.

As of March 31, 2025, $ 3.3 billion of reserves related to business written by multiple wholly-owned AIG subsidiaries had been ceded to Fortitude Re under these reinsurance transactions.

There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re.

The following summarizes the composition of the pool of assets:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(in millions) Carrying

11 unchanged sentences

Total $ 3,227 $ 3,215 $ 3,220 $ 3,207

(a) The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $ 31 million ($ 25 million after-tax) and $( 60 ) million ($( 47 ) million after-tax), respectively for the nine months ended September 30, 2024 and 2023.

(a) The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $( 2 ) million ($( 2 ) million after-tax) and $( 35 ) million ($( 28 ) million after-tax), respectively for the three months ended March 31, 2025 and for the year ended December 31, 2024.

(b) The derivative assets and liabilities have been presented net of cash collateral.

The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 3 million and $ 27 million, respectively, as of September 30, 2024.

The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 1 million and $ 33 million, respectively, as of March 31, 2025.

The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $ 9 million and $ 2 million, respectively, as of December 31, 2024.

1 unchanged sentence

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 8.

The impact of the funds withheld arrangements with Fortitude Re was as follows:

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(in millions) 2025 2024

Net investment income - Fortitude Re funds withheld assets $ 40 $ 39

Net realized gains (losses) on Fortitude Re funds withheld assets:

Net realized losses on Fortitude Re funds withheld assets:

Net realized losses - Fortitude Re funds withheld assets ( 2 ) ( 19 )

Net realized gains (losses) - Fortitude Re funds withheld embedded derivative ( 157 ) 57 ( 158 ) ( 25 )

Net realized gains (losses) on Fortitude Re funds withheld assets ( 175 ) 54 ( 196 ) ( 89 )

Net realized losses - Fortitude Re funds withheld embedded derivative ( 41 ) ( 9 )

Net realized losses on Fortitude Re funds withheld assets ( 43 ) ( 28 )

Income (loss) from continuing operations before income tax expense (benefit) ( 3 ) 11

Income tax expense (benefit) (a)

( 26 ) 18 ( 15 ) 4

Net income (loss)

( 98 ) 65 ( 58 ) 13

Change in unrealized appreciation (depreciation) of all other investments (a)

67 ( 63 ) 25 ( 47 )

Change in unrealized depreciation on available for sale securities (a)

Comprehensive income (loss) $ ( 4 ) $ 1

10 unchanged sentences

• whether the balance is in dispute or subject to legal collection;

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 8.

• the relative financial health of the reinsurer as classified by the Obligor Risk Ratings (ORRs) we assign to each reinsurer based upon our financial reviews;

4 unchanged sentences

An allowance for disputes is established for a reinsurance recoverable using the losses incurred model for contingencies.

The total reinsurance recoverables as of September 30, 2024 were $ 42.8 billion.

The total reinsurance recoverables as of March 31, 2025 were $ 41.5 billion.

As of that date, utilizing AIG’s ORRs, (i) approximately 84 percent of the reinsurance recoverables were investment grade;

4 unchanged sentences

(iii) approximately 2 percent of the reinsurance recoverables related to entities that were not rated by AIG.

As of September 30, 2024 and December 31, 2023, approximately 81 percent and 85 percent, respectively, of our non-investment grade reinsurance exposure related to captive insurers.

As of March 31, 2025 and December 31, 2024, approximately 80 percent and 81 percent, respectively, of our non-investment grade reinsurance exposure related to captive insurers.

These arrangements are typically collateralized by letters of credit, funds withheld or trust agreements.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 8.

Reinsurance Recoverable Allowance

The following table presents a rollforward of the reinsurance recoverable allowance:

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(in millions) 2025 2024

12 unchanged sentences

We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract.

Such DAC generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed.

Such DAC generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that were related directly to the successful acquisition of new or renewal insurance contracts.

Each cost is analyzed to assess whether it is fully deferrable.

3 unchanged sentences

The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 9.

Deferred Policy Acquisition Costs

The following table presents a rollforward of DAC:

Nine Months Ended September 30,

Three Months Ended March 31,

(in millions) 2025 2024

3 unchanged sentences

Other, including foreign exchange 19 ( 57 )

Reclassified to held for sale — ( 623 )

Balance, end of period $ 2,009 $ 2,104

5 unchanged sentences

While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 10.

Variable Interest Entities

BALANCE SHEET CLASSIFICATION AND EXPOSURE TO LOSS

Creditors or beneficial interest holders of VIEs for which AIG is the primary beneficiary generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to AIG, except in limited circumstances when AIG has provided a guarantee to the VIE’s interest holders.

The following table presents the total assets and total liabilities associated with our variable interests in consolidated VIEs, as classified in the Condensed Consolidated Balance Sheets:

(in millions) September 30, 2024 December 31, 2023

Bonds available for sale $ 29 $ 72

Mortgage and other loans receivable

Short-term investments — 5

Accrued investment income 1 2

Total* $ 31 $ 202

Debt of consolidated investment entities $ — $ 38

Total $ — $ 38

* The assets of each VIE can be used only to settle specific obligations of that VIE.

We calculate our maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where we have also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE.

For unconsolidated VIEs we calculate our maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where we have also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE.

The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as well as our maximum exposure to loss associated with these VIEs:

2 unchanged sentences

Assets On-Balance

September 30, 2024

March 31, 2025

Real estate and investment entities (a)

8 unchanged sentences

(a) Comprised primarily of hedge funds and private equity funds.

(b) At September 30, 2024 and December 31, 2023, excludes approximately $ 1,925 million and $ 1,971 million, respectively, of VIE assets related to AIGFP and its consolidated subsidiaries, with maximum off-balance sheet exposure to loss of $ 1,894 million and $ 1,941 million, respectively.

(b) At March 31, 2025 and December 31, 2024, excludes approximately $ 1,745 million and $ 1,925 million, respectively, of VIE assets related to AIGFP and its consolidated subsidiaries, with maximum off-balance sheet exposure to loss of $ 1,721 million and $ 1,894 million, respectively.

For additional information, see Note 1 to the Consolidated Financial Statements in the 2024 Annual Report.

(c) At September 30, 2024 and December 31, 2023, $ 3.7 billion and $ 4.1 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.

(d) These amounts represent our unfunded commitments to invest in private equity funds and hedge funds.

(c) At March 31, 2025 and December 31, 2024, $ 3.4 billion and $ 2.9 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.

(d) These amounts represent our unfunded commitments to invest in private equity funds.

(e) These amounts represent our estimate of the maximum exposure to loss under certain insurance policies issued to VIEs if a hypothetical loss occurred to the extent of the full amount of the insured value.

Our insurance policies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet.

For additional information on VIEs, see Note 10 to the Consolidated Financial Statements in the 2023 Annual Report.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 11.

8 unchanged sentences

The derivatives are effective economic hedges of the exposures that they are meant to offset.

As part of our strategy to enhance investment income, in addition to hedging activities, we also enter into derivative contracts with respect to investment operations, which may include, among other things, credit default swaps (CDSs), total return swaps and purchases of investments with embedded derivatives, such as equity-linked notes and convertible bonds.

In addition to hedging activities, we also enter into derivative contracts with respect to investment operations, which may include, among other things, credit default swaps (CDSs), total return swaps and purchases of investments with embedded derivatives, such as equity-linked notes and convertible bonds.

The following table presents the notional amounts of our derivatives and the fair value of derivative assets and liabilities in the Condensed Consolidated Balance Sheets:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Gross Derivative Assets Gross Derivative Liabilities Gross Derivative Assets Gross Derivative Liabilities

21 unchanged sentences

(a) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.

(b) As of September 30, 2024 and December 31, 2023, included CDSs on super senior multi-sector CLO with a net notional amount of $ 53 million and $ 50 million (fair value liability of $ 33 million and $ 32 million, respectively).

(b) As of March 31, 2025 and December 31, 2024, included CDSs on super senior multi-sector CLO with a net notional amount of $ 46 million and $ 48 million (fair value liability of $ 30 million and $ 30 million, respectively).

The net notional amount represents the maximum exposure to loss on the portfolio.

4 unchanged sentences

Derivative instrument assets and liabilities are recorded in Other assets and Other liabilities, respectively.

Fair value of assets related to bifurcated embedded derivatives was $ 3.4 billion at September 30, 2024 and $ 3.4 billion at December 31, 2023.

Fair value of liabilities related to bifurcated embedded derivatives was zero at both September 30, 2024 and December 31, 2023.

Fair value of assets related to bifurcated embedded derivatives was $ 3.2 billion at March 31, 2025 and $ 3.2 billion at December 31, 2024.

Fair value of liabilities related to bifurcated embedded derivatives was zero at both March 31, 2025 and December 31, 2024.

A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets.

6 unchanged sentences

We minimize the risk that counterparties might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and generally requiring additional collateral to be posted upon the occurrence of certain events or circumstances.

In addition, certain derivative transactions have provisions that require collateral to be posted by us upon a downgrade of our long-term debt ratings or give the counterparty the right to terminate the

AIG | Third Quarter 2024 Form 10-Q

In the case of some of the derivative transactions, upon a downgrade of our long-term debt ratings, as an alternative to

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 11.

Derivatives and Hedge Accounting

In the case of some of the derivative transactions, upon a downgrade of our long-term debt ratings, as an alternative to posting collateral and subject to certain conditions, we may assign the transaction to an obligor with higher debt ratings or arrange for a substitute guarantee of our obligations by an obligor with higher debt ratings or take other similar action.

posting collateral and subject to certain conditions, we may assign the transaction to an obligor with higher debt ratings or arrange for a substitute guarantee of our obligations by an obligor with higher debt ratings or take other similar action.

The actual amount of collateral required to be posted to counterparties in the event of such downgrades, or the aggregate amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade.

Collateral posted by us to third parties for derivative transactions was $ 574 million and $ 593 million at September 30, 2024 and December 31, 2023, respectively.

Collateral posted by us to third parties for derivative transactions was $ 412 million and $ 601 million at March 31, 2025 and December 31, 2024, respectively.

In the case of collateral posted under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties.

Collateral provided to us from third parties for derivative transactions was $ 456 million and $ 856 million at September 30, 2024 and December 31, 2023, respectively.

Collateral provided to us from third parties for derivative transactions was $ 337 million and $ 595 million at March 31, 2025 and December 31, 2024, respectively.

In the case of collateral provided to us under derivative transactions that are not subject to clearing, we generally can repledge or resell collateral.

10 unchanged sentences

For net investment hedge relationships that use derivatives as hedging instruments, we assess hedge effectiveness and measure hedge ineffectiveness using changes in forward rates.

For the three and nine months ended September 30, 2024, we recognized gains (losses) of $( 41 ) million and $( 7 ) million, respectively, and for the three and nine months ended September 30, 2023, we recognized gains (losses) of $ 38 million and $ 7 million, respectively, included in Change in foreign currency translation adjustments in OCI related to the net investment hedge relationships.

For the three months ended March 31, 2025 and 2024, we recognized gains (losses) of $( 71 ) million and $ 25 million, respectively, included in Change in foreign currency translation adjustments in OCI related to the net investment hedge relationships.

A qualitative methodology is utilized to assess hedge effectiveness.

5 unchanged sentences

Items Net Impact

Three Months Ended September 30, 2024

Foreign exchange contracts:

Net realized gains/(losses) $ 53 $ 6 $ ( 53 ) $ 6

Three Months Ended September 30, 2023

Foreign exchange contracts:

Net realized gains/(losses) $ 8 $ ( 6 ) $ ( 8 ) $ ( 6 )

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Foreign exchange contracts:

Net realized gains/(losses) $ ( 1 ) $ ( 1 ) $ 1 $ ( 1 )

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Foreign exchange contracts:

2 unchanged sentences

(b) Gains and losses on derivative instruments designated and qualifying in fair value hedges that are excluded from the assessment of hedge effectiveness and recognized in income on a mark-to-market basis.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 11.

2 unchanged sentences

The following table presents the effect of derivative instruments not designated as hedging instruments in the Condensed Consolidated Statements of Income (Loss):

Gains (Losses) Recognized in Income

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31, Gains (Losses) Recognized in Income

(in millions) 2025 2024

2 unchanged sentences

Foreign exchange contracts ( 33 ) ( 39 )

Equity contracts — 442 — 443

Commodity contracts — ( 1 ) — 7

Credit contracts — 1

Other contracts — ( 792 ) — ( 792 )

Embedded derivatives ( 41 ) ( 9 )

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By Classification:

Net investment income - excluding Fortitude Re funds withheld assets $ — $ — $ — $ —

Net investment income - Fortitude Re funds withheld assets — 1 — —

Net realized gains (losses) - excluding Fortitude Re funds withheld assets

7 ( 21 ) ( 62 ) ( 134 )

Net realized gains (losses) on Fortitude Re funds withheld assets *

Net realized losses - excluding Fortitude Re funds withheld assets

( 28 ) ( 42 )

Net realized losses on Fortitude Re funds withheld assets *

Total $ ( 75 ) $ ( 49 )

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CREDIT RISK-RELATED CONTINGENT FEATURES

We estimate that at September 30, 2024, based on our outstanding financial derivative transactions, a downgrade of our long-term senior debt ratings to BBB or BBB– by Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc., and/or a downgrade to Baa2 or Baa3 by Moody’s Investors’ Service, Inc.

We estimate that at March 31, 2025, based on our outstanding financial derivative transactions, a downgrade of our long-term senior debt ratings to BBB or BBB– by Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc., and/or a downgrade to Baa2 or Baa3 by Moody’s Investors’ Service, Inc.

would permit counterparties to make additional collateral calls and permit certain counterparties to elect early termination of contracts, resulting in corresponding collateral postings and termination payments in the total amount of up to approximately $ 5 million.

The aggregate fair value of our derivatives that were in a net liability position and that contain such credit risk-related contingencies which can be triggered below our long-term senior debt ratings of BBB+ or Baa1 was approximately $ 33 million and $ 32 million at September 30, 2024 and December 31, 2023, respectively.

The aggregate fair value of assets posted as collateral under these contracts at September 30, 2024 and December 31, 2023, was approximately $ 33 million and $ 34 million, respectively.

HYBRID SECURITIES WITH EMBEDDED CREDIT DERIVATIVES

We invest in hybrid securities (such as credit-linked notes) with the intent of generating income and not specifically to acquire exposure to embedded derivative risk.

As is the case with our other investments in RMBS, CMBS, CLO and ABS, our investments in these hybrid securities are exposed to losses only up to the amount of our initial investment in the hybrid security.

Other than our initial investment in the hybrid securities, we have no further obligation to make payments on the embedded credit derivatives in the related hybrid securities.

We elect to account for our investments in these hybrid securities with embedded written credit derivatives at fair value, with changes in fair value recognized in Net investment income.

Our investments in these hybrid securities are reported as Other bond securities in the Condensed Consolidated Balance Sheets.

The fair value of these hybrid securities was under $ 1 million at both September 30, 2024 and December 31, 2023, respectively.

These securities have par amounts of $ 17 million at both September 30, 2024 and December 31, 2023, respectively, and have remaining stated maturity dates that extend to 2052.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 12.

Insurance Liabilities

The aggregate fair value of our derivatives that were in a net liability position and that contain such credit risk-related contingencies which can be triggered below our long-term senior debt ratings of BBB+ or Baa1 was approximately $ 30 million and $ 30 million at March 31, 2025 and December 31, 2024, respectively.

The aggregate fair value of assets posted as collateral under these contracts at March 31, 2025 and December 31, 2024, was approximately $ 30 million and $ 30 million, respectively.

Insurance Liabilities

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Reserve changes that decrease previous estimates of ultimate cost are referred to as favorable development or reserve releases.

Our gross loss reserves before reinsurance and discount are net of contractual deductible recoverable amounts due from policyholders of approximately $ 12.8 billion and $ 12.1 billion at September 30, 2024 and December 31, 2023, respectively.

Our gross loss reserves before reinsurance and discount are net of contractual deductible recoverable amounts due from policyholders of approximately $ 12.1 billion and $ 12.1 billion at March 31, 2025 and December 31, 2024, respectively.

These recoverable amounts are related to certain policies with high deductibles (in excess of high dollar amounts retained by the insured through self-insured retentions, deductibles, retrospective programs, or captive arrangements, each referred to generically as “deductibles”), primarily for U.S.

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Thus, these recoverable amounts represent a credit exposure to us.

At September 30, 2024 and December 31, 2023 we held collateral of approximately $ 8.6 billion and $ 8.7 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements.

Allowance for credit losses for the unsecured portion of these recoverable amounts was $ 14 million at both September 30, 2024 and December 31, 2023.

At March 31, 2025 and December 31, 2024 we held collateral of approximately $ 8.7 billion and $ 8.6 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements.

Allowance for credit losses for the unsecured portion of these recoverable amounts was $ 14 million at both March 31, 2025 and December 31, 2024.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 12.

Insurance Liabilities

The following table presents the rollforward of activity in loss reserves:

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(in millions) 2025 2024

Liability for unpaid loss and loss adjustment expenses, beginning of period $ 69,783 $ 70,284 $ 70,393 $ 75,167

Liability for unpaid loss and loss adjustment expenses, beginning of year $ 69,168 $ 70,393

Reinsurance recoverable ( 29,026 ) ( 30,289 )

Net Liability for unpaid loss and loss adjustment expenses, beginning of period 39,934 40,058 40,104 43,065

Net Liability for unpaid loss and loss adjustment expenses, beginning of year 40,142 40,104

Losses and loss adjustment expenses incurred:

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Retroactive reinsurance adjustment (net of discount) (b)

( 107 ) 121 71 180

Dispositions ( 5 ) — ( 5 ) —

Reclassified to held for sale, net of reinsurance recoverables (c)

5 ( 159 ) — ( 3,542 )

Reclassified to held for sale, net of reinsurance recoverables — ( 5 )

Total other changes 551 ( 509 )

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Net liability for unpaid losses and loss adjustment expenses 41,097 39,891

Reinsurance recoverable (d)

Reinsurance recoverable

27,799 30,169

Total $ 68,896 $ 70,060

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 12.

Insurance Liabilities

(a) Includes $ 5 million and $ 5 million for the retroactive reinsurance agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc.

(Berkshire), covering U.S.

asbestos exposures for the three months ended September 30, 2024 and 2023, respectively, and $ 47 million and $ 22 million for the nine months ended September 30, 2024 and 2023, respectively.

(b) Includes benefit (charge) from change in discount on retroactive reinsurance of $ 22 million and $ 24 million for the three months ended September 30, 2024 and 2023 respectively, and $ 100 million and $ 120 million for the nine months ended September 30, 2024 and 2023, respectively.

(c) Represents change in loss reserves included in Liabilities held for sale for the three months ended September 30, 2024 and 2023.

For additional information, see Note 4 .

(d) Excludes $ 1.5 billion of Reinsurance recoverable reclassified to Assets held for sale on the Condensed Consolidated Balance Sheets at September 30, 2023.

asbestos exposures for the three months ended March 31, 2025 and 2024, respectively.

(b) Includes benefit (charge) from change in discount on retroactive reinsurance in the amount of $ 1 million and $ 55 million for the three months ended March 31, 2025 and 2024, respectively.

On January 20, 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.

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Prior Year Development

During the three months ended September 30, 2024, we recognized unfavorable prior year loss reserve development of $ 187 million which does not reflect the benefit of recoveries under a retroactive adverse development cover, and excludes discount and amortization of deferred gain.

The development in this period was largely driven by adverse development in U.S.

Excess Casualty and UK/Europe Casualty and Financial Lines, offset by favorable development in Global Specialty and U.S.

Property and Special Risks.

During the nine months ended September 30, 2024, we recognized unfavorable prior year loss reserve development of $ 79 million excluding discount and amortization of deferred gain.

The development in this period was largely driven by adverse development in U.S.

Excess Casualty and UK/Europe Casualty and Financial Lines, offset by favorable development in Global Specialty, U.S.

Property and Special Risks and on our loss sensitive U.S.

Workers' Compensation business.

During the three months ended September 30, 2023, we recognized favorable prior year loss reserve development of $ 246 million excluding discount and amortization of deferred gain.

The development in this period was largely driven by favorable development on our U.S.

Workers' Compensation business, International Financial Lines in all regions except UK, which was adverse, and Japan Personal Insurance partially offset by unfavorable development on UK/Europe Casualty.

During the nine months ended September 30, 2023, we recognized favorable prior year loss reserve development of $ 380 million excluding discount and amortization of deferred gain.

The development in this period was largely driven by favorable development on our U.S.

Workers' Compensation business, U.S.

Other Casualty and Other Product Lines, partially offset by unfavorable development on UK/Europe Casualty and UK Financial Lines.

During the three months ended March 31, 2025, we recognized favorable prior year loss reserve development of $ 33 million excluding discount and amortization of deferred gain.

The development in this period was largely driven by favorable development in U.S.

Property and Global Specialty.

During the three months ended March 31, 2024, we did not recognize any prior year loss reserve development excluding discount and amortization of deferred gain.

Discounting of Loss Reserves

At September 30, 2024 and December 31, 2023, the loss reserves reflect a net loss reserve discount of $ 1.2 billion and $ 1.2 billion, respectively, including tabular and non-tabular calculations based upon the following assumptions:

• The non-tabular workers’ compensation discount is calculated separately for companies domiciled in New York, Pennsylvania and Delaware, and follows the statutory regulations (prescribed or permitted) for each state.

At March 31, 2025 and December 31, 2024, the loss reserves reflect a net loss reserve discount of $ 1.2 billion and $ 1.2 billion, respectively, including tabular and non-tabular calculations based upon the following assumptions:

– For New York companies, the discount is based on a 5 percent interest rate and the companies’ own payout patterns.

– The Pennsylvania and Delaware regulators approved use of a consistent benchmark discount rate and spread (U.S.

– The Pennsylvania and Delaware regulators have historically approved use of a consistent benchmark discount rate and spread (U.S.

Treasury rate plus a liquidity premium) to all of our workers’ compensation reserves in our Pennsylvania domiciled and Delaware domiciled companies, as well as our use of updated payout patterns specific to our primary and excess workers compensation portfolios.

In 2020, the regulators also approved that the discount rate will be updated on an annual basis.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 12.

Insurance Liabilities

• The tabular workers’ compensation discount is calculated based on the mortality rate used in the 2007 U.S.

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Treasury rate plus a liquidity premium).

In the case that applying this tabular discount factor to our nominal reserves produces a tabular discount that is greater than the indemnity portion of our case reserves, the tabular discount is capped at our estimate of the indemnity portion of our cases reserves ( 45 percent).

The discount for asbestos reserves has been fully accreted.

At September 30, 2024 and December 31, 2023, the discount consists of $ 280 million and $ 294 million of tabular discount, respectively, and $ 922 million and $ 939 million of non-tabular discount for workers’ compensation, respectively.

During the nine months ended September 30, 2024 and 2023, the benefit / (charge) from changes in discount of $( 131 ) million and $( 85 ) million, respectively, were recorded as part of Policyholder benefits and losses incurred in the Condensed Consolidated Statements of Income (Loss).

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 12.

Insurance Liabilities

At March 31, 2025 and December 31, 2024, the discount consists of $ 112 million and $ 107 million of tabular discount, respectively, and $ 1.0 billion and $ 1.1 billion of non-tabular discount for workers’ compensation, respectively.

During the three months ended March 31, 2025 and 2024, the benefit / (charge) from changes in discount of $( 17 ) million and $( 76 ) million, respectively, were recorded as part of Losses and loss adjustment expenses incurred in the Condensed Consolidated Statements of Income (Loss).

The following table presents the components of the loss reserve discount discussed above:

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

workers' compensation $ 2,094 $ 2,111

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$ 1,159 $ 1,175

(a) Excludes $ 197 million and $ 196 million of discount related to certain long-tail liabilities in the UK at September 30, 2024 and December 31, 2023, respectively.

(b) Includes gross discount of $ 665 million and $ 687 million, which was 100 percent ceded to Fortitude Re at September 30, 2024 and December 31, 2023, respectively.

(a) Excludes $ 190 million and $ 184 million of discount related to certain long-tail liabilities in the UK at March 31, 2025 and December 31, 2024, respectively.

(b) Includes gross discount of $ 736 million and $ 627 million, which was 100 percent ceded to Fortitude Re at March 31, 2025 and December 31, 2024, respectively.

The following table presents the net loss reserve discount benefit (charge):

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(in millions) 2025 2024

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Net change in total reserve discount* $ ( 16 ) $ ( 21 )

* Excludes $ 1 million and $ 7 million discount related to certain long-tail liabilities in the UK for the three months ended September 30, 2024 and 2023, respectively, and excludes $ 1 million and $ 15 million discount related to certain long-tail liabilities in the UK for the nine months ended September 30, 2024 and 2023, respectively.

* Excludes $ 6 million and $( 2 ) million of discount related to certain long-tail liabilities in the UK for the three months ended March 31, 2025 and 2024, respectively.

Amortization of Deferred Gain on Retroactive Reinsurance

Amortization of the deferred gain on retroactive reinsurance includes $ 209 million and $( 36 ) million related to the adverse development reinsurance cover with NICO for the three months ended September 30, 2024 and 2023, respectively, and $ 230 million and $ 36 million related to the adverse development reinsurance cover with NICO for the nine months ended September 30, 2024 and 2023, respectively.

Amortization of the deferred gain on retroactive reinsurance includes $ 17 million and $ 27 million related to the adverse development reinsurance cover with NICO for the three months ended March 31, 2025 and 2024, respectively.

Amounts recognized reflect the amortization of the initial deferred gain at inception, as amended for subsequent changes in the deferred gain due to changes in subject reserves.

FUTURE POLICY BENEFITS

Future policy benefits primarily include reserves for traditional life and annuity payout contracts, which represent an estimate of the present value of future benefits less the present value of future net premiums.

For traditional and limited pay long-duration products, benefit reserves are accrued and benefit expense is recognized using a net premium ratio methodology for each annual cohort of business.

The following tables present the balances and changes in the liability for future policy benefits and a reconciliation of the net liability for future policy benefits to the liability for future policy benefits in the Condensed Consolidated Balance Sheets:

Nine Months Ended September 30,

(in millions, except for liability durations) 2024 2023

Present value of expected net premiums

Balance, beginning of year $ 1,702 $ 1,929

Effect of changes in discount rate assumptions (AOCI) 339 262

Beginning balance at original discount rate 2,041 2,191

Effect of actual variances from expected experience ( 7 ) ( 44 )

Adjusted beginning of year balance 2,034 2,147

Issuances 75 100

Interest accrual 22 22

Net premium collected ( 268 ) ( 160 )

Foreign exchange impact ( 87 ) ( 62 )

Other — ( 63 )

Ending balance at original discount rate 1,776 1,984

Effect of changes in discount rate assumptions (AOCI) ( 193 ) ( 354 )

Balance, end of period $ 1,583 $ 1,630

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 12.

Insurance Liabilities

Nine Months Ended September 30,

(in millions, except for liability durations) 2024 2023

Present value of expected future policy benefits

Balance, beginning of year $ 2,149 $ 2,380

Effect of changes in discount rate assumptions (AOCI) 441 362

Beginning balance at original discount rate 2,590 2,742

Effect of actual variances from expected experience ( 8 ) ( 43 )

Adjusted beginning of year balance 2,582 2,699

Issuances 79 104

Interest accrual 27 27

Benefit payments ( 273 ) ( 153 )

Foreign exchange impact ( 107 ) ( 93 )

Other — ( 74 )

Ending balance at original discount rate 2,308 2,510

Effect of changes in discount rate assumptions (AOCI) ( 264 ) ( 461 )

Balance, end of period $ 2,044 $ 2,049

Net liability for future policy benefits, end of period $ 461 $ 419

Deferred profit liability 1 1

Other reconciling items (a)

Future policy benefits 1,471 1,311

Reinsurance recoverable ( 813 ) ( 712 )

Net liability for future policy benefits after reinsurance recoverable $ 658 $ 599

Weighted average liability duration of the liability for future policy benefits (b)

(a) Other reconciling items primarily include Accident & Health (short-duration) contracts of $ 776 million and $ 661 million at September 30, 2024 and 2023, respectively, of certain long-duration contracts that are 100 percent ceded.

(b) The weighted average liability durations are calculated as the modified duration using projected future net liability cash flows that are aggregated at the segment level, utilizing the segment level weighted average interest rates and current discount rate, which can be found in the table below.

The following table presents the amount of undiscounted expected future benefit payments and undiscounted and discounted expected gross premiums for future policy benefits for nonparticipating contracts:

Nine Months Ended September 30,

(in millions) 2024 2023

Undiscounted expected future benefits and expense $ 2,820 $ 3,099

Undiscounted expected future gross premiums 3,881 4,275

Discounted expected future gross premiums (at current discount rate) 2,905 2,963

The following table presents the amount of revenue and interest recognized in the Condensed Consolidated Statements of Income (Loss) for future policy benefits for nonparticipating contracts:

Nine Months Ended September 30,

(in millions) 2024 2023

Gross premiums $ 326 $ 338

Interest accretion $ 5 $ 5

The following table presents the weighted-average interest rate for future policy benefits for nonparticipating contracts:

Nine Months Ended September 30, 2024 2023

Weighted-average interest rate, original discount rate 1.83 % 1.84 %

Weighted-average interest rate, current discount rate 3.30 % 3.92 %

The weighted average interest rates are calculated using projected future net liability cash flows that are aggregated to the segment level, and are represented as an annual rate.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 13.

Contingencies, Commitments and Guarantees

Future policy benefits primarily include reserves for Global Accident & Health (short-duration) contracts.

Contingencies, Commitments and Guarantees

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Certain of these matters involve potentially significant risk of loss due to potential for significant jury awards and settlements, punitive damages or other penalties.

Many of these matters are also highly complex and may seek recovery on behalf of a class or similarly large number of plaintiffs.

Many of these matters are also highly complex and may seek recovery on behalf of a class or similarly large number

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 13.

Contingencies, Commitments and Guarantees

of plaintiffs.

It is therefore inherently difficult to predict the size or scope of potential future losses arising from these matters.

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In the normal course of business, we enter into commitments to invest in limited partnerships, private equity funds and hedge funds and to purchase and develop real estate in the U.S.

These commitments totaled $ 1.5 billion and $ 1.7 billion at September 30, 2024 and December 31, 2023, respectively.

These commitments totaled $ 1.9 billion and $ 1.8 billion at March 31, 2025 and December 31, 2024, respectively.

We have issued unconditional guarantees with respect to the prompt payment, when due, of all present and future payment obligations and liabilities of AIGFP and certain of its subsidiaries.

We have also issued guarantees of all present and future payment obligations and liabilities of AIG Markets, Inc.

Due to the deconsolidation of AIGFP and its subsidiaries, as of September 30, 2024, a $ 100 million guarantee related to the obligations of AIGFP and certain of its subsidiaries was recognized, and is reported in Other liabilities.

Due to the deconsolidation of AIGFP and its subsidiaries, as of March 31, 2025, a $ 100 million guarantee related to the obligations of AIGFP and certain of its subsidiaries was recognized, and is reported in Other liabilities.

We continue to guarantee certain policyholder contracts issued by Corebridge subsidiaries as well as certain debt issued by Corebridge Life Holdings, Inc.

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Also, under a collateral agreement, in the event of:

(i) a ratings downgrade of Corebridge or the guaranteed debt below specified levels or (ii) the failure by CRBGLH to pay principal and interest on the guaranteed debt when due, Corebridge must collateralize an amount equal to

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 13.

Contingencies, Commitments and Guarantees

(i) 100 percent of the principal amount outstanding, (ii) accrued and unpaid interest and (iii) 100 percent of the net present value of scheduled interest payments through the maturity dates of the debt.

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• For additional information on derivatives, see Note 11.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 14.

SHARES OUTSTANDING

Preferred Stock

On March 14, 2019, we issued 20,000 shares of Series A 5.85 % Non-Cumulative Perpetual Preferred Stock (Series A Preferred Stock) (equivalent to 20,000,000 Depositary Shares (the Depositary Shares), each representing a 1/1,000th interest in a share of Series A Preferred Stock), $ 5.00 par value and $ 25,000 liquidation preference per share (equivalent to $ 25 per Depositary Share).

After underwriting discounts and expenses, we received net proceeds of approximately $ 485 million.

On March 15, 2024, we redeemed all 20,000 outstanding shares of our Series A Preferred Stock and all 20,000,000 of the corresponding Depositary Shares, each representing a 1/1,000th interest in a share of Series A Preferred Stock, for a redemption price of $ 25,000 per share (equivalent to $ 25.00 per Depositary Share) for an aggregate redemption price of $ 500 million, paid in cash.

The $ 15 million difference between the aggregate redemption price and the outstanding par and additional paid in capital amount of $ 485 million was recorded as a reduction of retained earnings and is presented on Dividends on preferred stock and preferred stock redemption premiums on the Condensed Consolidated Statements of Income.

The following table presents a rollforward of outstanding shares:

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Stock Issued Treasury

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the capital resources available to support our insurance operations and business strategies, AIG’s funding capacity and capital resources in comparison to internal benchmarks, expectations for capital generation, rating agency expectations for capital, regulatory standards for capital and capital distributions, and such other factors as our Board of Directors may deem relevant.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 14.

For a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries, see Note 18 to the Consolidated Financial Statements in the 2024 Annual Report.

Repurchase of AIG Common Stock

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Certain of our share repurchases have been and may from time to time be effected through the Securities Exchange Act of 1934, as amended (the Exchange Act) Rule 10b5-1 repurchase plans.

On April 30, 2024, the Board of Directors authorized the repurchase of $ 10.0 billion of AIG Common Stock (inclusive of the approximately $ 3.9 billion remaining under the Board's prior share repurchase authorization).

Effective April 1, 2025, the Board of Directors authorized the repurchase of $ 7.5 billion of AIG Common Stock (inclusive of the approximately $ 3.4 billion remaining under the Board's prior share repurchase authorization).

The timing of any future repurchases will depend on market conditions, our business and strategic plans, financial condition, results of operations, liquidity and other factors.

Pursuant to an Exchange Act Rule 10b5-1 repurchase plan, from October 1, 2024 to October 30, 2024, we repurchased approximately 7 million shares of AIG Common Stock for an aggregate purchase price of approximately $ 500 million.

Pursuant to an Exchange Act Rule 10b5-1 repurchase plan, from April 1, 2025 to April 25, 2025, we repurchased approximately 5 million shares of AIG Common Stock for an aggregate purchase price of approximately $ 374 million.

DIVIDENDS DECLARED

On November 4, 2024, our Board of Directors declared a cash dividend on AIG Common Stock of $ 0.40 per share, payable on December 30, 2024 to shareholders of record on December 16, 2024.

On May 1, 2025, our Board of Directors declared a cash dividend on AIG Common Stock of $ 0.45 per share, a 12.5 percent increase from prior quarterly dividends on AIG Common Stock, payable on June 27, 2025 to shareholders of record on June 13, 2025.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 14.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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Adjustment Total

Balance, June 30, 2024, net of tax $ ( 38 ) $ ( 3,422 ) $ — $ 22 $ ( 3,322 ) $ ( 805 ) $ ( 7,565 )

Change in unrealized appreciation (depreciation) of investments*

45 1,581 — — — — 1,626

Change in other — 17 — — — — 17

Change in discount rates — — — ( 12 ) — — ( 12 )

Change in foreign currency translation adjustments

— — — — 427 — 427

Change in net actuarial loss

— — — — — 2 2

Change in prior service cost

— — — — — ( 1 ) ( 1 )

Change in deferred tax asset (liability)

( 8 ) ( 249 ) — 58 ( 13 ) — ( 212 )

Total other comprehensive income 37 1,349 — 46 414 1 1,847

Noncontrolling interests — — — — 4 — 4

Balance, September 30, 2024, net of tax $ ( 1 ) $ ( 2,073 ) $ — $ 68 $ ( 2,912 ) $ ( 804 ) $ ( 5,722 )

Balance, June 30, 2023, net of tax $ ( 60 ) $ ( 16,655 ) $ ( 315 ) $ 2,067 $ ( 3,174 ) $ ( 845 ) $ ( 18,982 )

Change in unrealized appreciation (depreciation) of investments*

( 69 ) ( 7,025 ) — — — — ( 7,094 )

Change in other ( 11 ) 17 — — — — 6

Change in fair value of market risk benefits, net — — ( 104 ) — — — ( 104 )

Change in discount rates — — — 1,470 — — 1,470

Change in future policy benefits

— 173 — — — — 173

Change in foreign currency translation adjustments

— — — — ( 279 ) — ( 279 )

Change in net actuarial loss

— — — — — 62 62

Change in prior service cost

— — — — — 1 1

Change in deferred tax asset (liability)

14 1,141 23 ( 323 ) 10 ( 18 ) 847

Total other comprehensive income (loss) ( 66 ) ( 5,694 ) ( 81 ) 1,147 ( 269 ) 45 ( 4,918 )

Corebridge noncontrolling interests ( 1 ) ( 72 ) ( 2 ) 14 — — ( 61 )

Noncontrolling interests ( 17 ) ( 1,760 ) ( 29 ) 387 ( 13 ) — ( 1,432 )

Balance, September 30, 2023, net of tax $ ( 110 ) $ ( 20,661 ) $ ( 369 ) $ 2,841 $ ( 3,430 ) $ ( 800 ) $ ( 22,529 )

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 14.

(in millions) Unrealized

(Depreciation)

of Fixed Maturity

Securities on Which

Allowance for Credit

Losses Was Taken Unrealized

(Depreciation)

Investments Change in Fair

Value of Market

Risk Benefits

Attributable to

Credit Risk Change in the

discount rates

used to measure

traditional and

limited payment

long-duration

insurance contracts Foreign

Adjustments Retirement

Adjustment Total

Balance, December 31, 2024, net of tax $ ( 4 ) $ ( 2,868 ) $ — $ 68 $ ( 3,521 ) $ ( 774 ) $ ( 7,099 )

2 unchanged sentences

Change in other — 6 — — — — 6

Change in fair value of market risk benefits, net — — 130 — — — 130

Change in discount rates — — — 9 — — 9

Change in future policy benefits — ( 59 ) — — — — ( 59 )

Change in foreign currency translation adjustments — — — — 175 — 175

Change in net actuarial loss — — — — — 8 8

Change in prior service cost — — — — — 2 2

Change in deferred tax asset (liability) — 101 — ( 3 ) 19 ( 1 ) 116

Corebridge deconsolidation, net of tax 42 8,513 330 ( 1,583 ) ( 88 ) — 7,214

Total other comprehensive income 4 425 — 6 194 7 636

Corebridge noncontrolling interests 2 610 33 ( 105 ) ( 3 ) — 537

Noncontrolling interests — — — — 1 — 1

Balance, September 30, 2024, net of tax $ ( 1 ) $ ( 2,073 ) $ — $ 68 $ ( 2,912 ) $ ( 804 ) $ ( 5,722 )

Balance, March 31, 2025, net of tax $ — $ ( 2,443 ) $ — $ 74 $ ( 3,328 ) $ ( 767 ) $ ( 6,464 )

Balance, December 31, 2023, net of tax $ ( 106 ) $ ( 10,888 ) $ ( 476 ) $ 1,233 $ ( 2,979 ) $ ( 821 ) $ ( 14,037 )

11 unchanged sentences

Noncontrolling interests 17 ( 559 ) ( 11 ) 258 ( 3 ) — ( 298 )

Balance, September 30, 2023, net of tax $ ( 110 ) $ ( 20,661 ) $ ( 369 ) $ 2,841 $ ( 3,430 ) $ ( 800 ) $ ( 22,529 )

* Includes net unrealized gains and losses attributable to businesses held for sale or reclassified to discontinued operations at September 30, 2024 and 2023.

The following table presents the other comprehensive income (loss) reclassification adjustments for the three and nine months ended September 30, 2024 and 2023 , respectively:

(in millions) Unrealized

(Depreciation)

of Fixed Maturity

Securities on Which

Allowance for Credit

Losses Was Taken Unrealized

(Depreciation)

Investments Change in Fair

Value of Market

Risk Benefits

Attributable to

Changes in Our

Own Credit Risk Change in the

discount rates

used to measure

traditional and

limited payment

long-duration

insurance contracts Foreign

Adjustments Retirement

Adjustment Total

Three Months Ended September 30, 2024

Unrealized change arising during period $ 45 $ 1,514 $ — $ ( 12 ) $ 427 $ ( 7 ) $ 1,967

Reclassification adjustments included in net income — ( 84 ) — — — ( 8 ) ( 92 )

Total other comprehensive income (loss), before income tax expense (benefit) 45 1,598 — ( 12 ) 427 1 2,059

Income tax expense (benefit) 8 249 — ( 58 ) 13 — 212

Total other comprehensive income (loss), net of income tax expense (benefit) $ 37 $ 1,349 $ — $ 46 $ 414 $ 1 $ 1,847

Three Months Ended September 30, 2023

Unrealized change arising during period $ ( 80 ) $ ( 6,998 ) $ ( 104 ) $ 1,470 $ ( 279 ) $ 57 $ ( 5,934 )

Reclassification adjustments included in net income — ( 163 ) — — — ( 6 ) ( 169 )

Total other comprehensive income (loss), before income tax expense (benefit) ( 80 ) ( 6,835 ) ( 104 ) 1,470 ( 279 ) 63 ( 5,765 )

Income tax expense (benefit) ( 14 ) ( 1,141 ) ( 23 ) 323 ( 10 ) 18 ( 847 )

Total other comprehensive income (loss), net of income tax expense (benefit) $ ( 66 ) $ ( 5,694 ) $ ( 81 ) $ 1,147 $ ( 269 ) $ 45 $ ( 4,918 )

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 14.

Balance, March 31, 2024, net of tax $ ( 66 ) $ ( 11,702 ) $ ( 493 ) $ 1,535 $ ( 3,329 ) $ ( 814 ) $ ( 14,869 )

* Includes net unrealized gains and losses attributable to businesses held for sale or reclassified to discontinued operations at March 31, 2024.

The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended March 31, 2025 and 2024 , respectively:

(in millions) Unrealized

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Adjustment Total

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Unrealized change arising during period $ 4 $ 62 $ — $ 9 $ 175 $ — $ 250

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Total other comprehensive income (loss), net of income tax expense (benefit) $ 4 $ 425 $ — $ 6 $ 194 $ 7 $ 636

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Unrealized change arising during period $ 66 $ ( 1,832 ) $ ( 29 ) $ 697 $ ( 339 ) $ 2 $ ( 1,435 )

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Total other comprehensive income (loss), net of income tax expense (benefit) $ 57 $ ( 1,290 ) $ ( 23 ) $ 545 $ ( 353 ) $ 7 $ ( 1,057 )

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 14.

The following table presents the effect of the reclassification of significant items out of AOCI on the respective line items in the Condensed Consolidated Statements of Income (Loss) (a) :

Amount Reclassified from AOCI Affected Line Item in the

Three Months Ended September 30, Condensed Consolidated

(in millions) 2024 2023 Statements of Income (Loss)

Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken

Investments $ — $ — Net realized gains (losses)

Unrealized appreciation (depreciation) of all other investments

Investments ( 84 ) ( 163 ) Net realized gains (losses)

Total ( 84 ) ( 163 )

Change in retirement plan liabilities adjustment

Prior-service credit — ( 1 ) (b)

Actuarial losses ( 8 ) ( 5 ) (b)

Total ( 8 ) ( 6 )

Total reclassifications for the period $ ( 92 ) $ ( 169 )

Amount Reclassified from AOCI Affected Line Item in the

Nine Months Ended September 30, Condensed Consolidated

Three Months Ended March 31, Condensed Consolidated

(in millions) 2025 2024 Statements of Income (Loss)

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Total ( 8 ) ( 7 )

Corebridge deconsolidation, net of tax ( 7,214 ) — (c)

Total reclassifications for the period $ ( 270 ) $ ( 450 )

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(b) These AOCI components are included in the computation of net periodic pension cost.

(c) Represents adjustments related to the deconsolidation of Corebridge which is reflected in Income (loss) from discontinued operations, net of taxes.

See the rollforward of Accumulated other comprehensive income (loss) above for further details.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 15.

Earnings Per Common Share (EPS)

The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits.

The diluted EPS computation is based on those shares used in the basic EPS computation plus common shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits, using the treasury stock method or the if-converted method, as applicable.

Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding.

The diluted EPS computation assumes the issuance of all potentially dilutive common shares outstanding using the treasury stock method or the if-converted method, as applicable, and excludes the effect of anti-dilutive shares.

The following table presents the computation of basic and diluted EPS:

Three Months Ended

September 30, Nine Months Ended

September 30,

Three Months Ended March 31,

(dollars in millions, except per common share data) 2025 2024

Numerator for EPS:

Income from continuing operations $ 481 $ 701 $ 1,753 $ 1,879

Income (loss) from continuing operations $ 698 $ 797

Preferred stock dividends and preferred stock redemption premiums — 22

Income attributable to AIG common shareholders from continuing operations 481 694 1,731 1,857

Income (loss) attributable to AIG common shareholders from continuing operations 698 775

Income (loss) from discontinued operations, net of income tax expense — 803

Net income (loss) attributable to noncontrolling interests ( 2 ) 720 475 801

Net income attributable to noncontrolling interests — 384

Income (loss) from discontinued operations, net of noncontrolling interest — 419

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Income (loss) per common share attributable to AIG common shareholders:

Income from continuing operations $ 0.75 $ 0.97 $ 2.62 $ 2.56

Income (loss) from discontinued operations $ ( 0.03 ) $ 1.86 $ ( 6.13 ) $ 2.30

Income (loss) from continuing operations $ 1.18 $ 1.14

Income from discontinued operations $ — $ 0.61

Income (loss) attributable to AIG common shareholders $ 1.18 $ 1.75

Income from continuing operations $ 0.74 $ 0.97 $ 2.59 $ 2.54

Income (loss) from discontinued operations $ ( 0.03 ) $ 1.84 $ ( 6.07 ) $ 2.29

Income (loss) from continuing operations $ 1.16 $ 1.13

Income from discontinued operations $ — $ 0.61

Income (loss) attributable to AIG common shareholders $ 1.16 $ 1.74

(a) Potential dilutive common shares are primarily due to our share-based employee compensation plans.

The number of potential common shares excluded from diluted shares outstanding was 0.1 million and 0.1 million for the three and nine months ended September 30, 2024, respectively, and 5.1 million and 5.4 million for the three and nine months ended September 30, 2023, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive.

(a) Potential dilutive common shares are due to our share-based employee compensation plans and agreements.

The number of potential common shares excluded from diluted shares outstanding was 161,754 and 141,749 for the three months ended March 31, 2025 and 2024, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive.

For information regarding our repurchases of AIG Common Stock, see Note 14.

TAX LAW CHANGES

The Inflation Reduction Act of 2022 (H.R.

5376) includes a 15 percent corporate alternative minimum tax (CAMT) on adjusted financial statement income for corporations with average profits over $1 billion over a three-year period.

While the U.S.

Treasury and Internal Revenue Service (IRS) issued proposed regulations for CAMT during the third quarter of 2024, there are still certain details and specifics of application of the CAMT that remain unclear and we continue to evaluate the impact of the proposed regulations along with prior guidance.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 16.

BASIS OF PRESENTATION

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and foreign laws.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 16.

TAX ACCOUNTING POLICIES

We consider our foreign earnings with respect to certain operations in Canada, South Africa, Japan, Latin America, Bermuda as well as the European, Asia Pacific and Middle East regions to be indefinitely reinvested.

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affiliates whose earnings are not indefinitely reinvested.

Global Intangible Low-Taxed Income (GILTI) imposes U.S.

taxes on the excess of a deemed return on tangible assets of certain foreign subsidiaries.

Consistent with accounting guidance, we have made an accounting policy election to treat GILTI taxes as a period tax charge in the period the tax is incurred.

INTERIM TAX CALCULATION METHOD

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INTERIM TAX EXPENSE (BENEFIT)

For the three months ended September 30, 2024, the effective tax rate on income from continuing operations was 25.9 percent.

The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax charges associated with the effect of foreign operations, state and local income taxes and certain non-deductible expenses, partially offset by tax benefits related to the dividends received deduction applicable to post-deconsolidation Corebridge dividends and tax exempt income.

The effect of foreign operations is primarily related to income of our foreign operations taxed at statutory tax rates higher than 21 percent, other foreign taxes, and foreign income subject to U.S.

For the nine months ended September 30, 2024, the effective tax rate on income from continuing operations was 24.6 percent.

The effect of foreign operations is primarily related to income of our foreign operations taxed at statutory tax rates higher than 21 percent, other foreign taxes, and foreign income subject to U.S.

For the three months ended September 30, 2023, the effective tax rate on income from continuing operations was 36.3 percent.

The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax charges associated with tax adjustments related to prior year returns, the effect of foreign operations, and state and local income taxes.

These tax charges were partially offset by tax benefits related to tax implications related to the announced sale of Validus Re and tax exempt income.

For the three months ended March 31, 2025, the effective tax rate on income from continuing operations was 27.3 percent.

The effective tax rate on income from continuing operations differs from the statutory tax rate of 21 percent primarily due to tax charges associated with the effect of foreign operations, certain non-deductible expenses and state and local income taxes, partially offset by tax benefits related to closure of tax audits in Germany and California, and excess tax benefits related to share-based compensation payments recorded through the income statement.

The effect of foreign operations is primarily related to income of our foreign operations taxed at statutory tax rates higher than 21 percent, other foreign taxes, and foreign income subject to U.S.

For the nine months ended September 30, 2023, the effective tax rate on income from continuing operations was 21.3 percent.

These tax charges were partially offset by tax benefits related to the potential resolution of an IRS audit matter, net of an increase in associated uncertain tax benefits, tax exempt income and excess tax benefits related to share-based compensation payments recorded through the income statement.

For the three months ended March 31, 2024, the effective tax rate on income from continuing operations was 24.7 percent.

These tax charges were partially offset by tax benefits related to tax exempt income and the excess tax benefits related to share-based compensation payments recorded through the income statement.

The effect of foreign operations is primarily related to income of our foreign operations taxed at statutory tax rates higher than 21 percent, other foreign taxes, and foreign income subject to U.S.

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The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed.

AIG | Third Quarter 2024 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 16.

During the third quarter, taxable income projections were updated to reflect the latest projections of income for our insurance and non-insurance companies, the filing of our 2023 U.S.

federal consolidated income tax return, 2024 transactions, and projections of taxable income generated from prudent and feasible tax planning strategies.

During the first quarter, taxable income projections were updated to reflect the latest projections of income for our insurance and non-insurance companies, and projections of taxable income generated from prudent and feasible tax planning strategies.

Given there is a shorter carryforward period to utilize remaining net operating losses, we continue to consider multiple data points and stresses.

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We also subjected the forecasts to a variety of stresses of key assumptions and evaluated the effect on tax attribute utilization.

To the extent that the valuation allowance is attributed to changes in forecast of current year taxable income, the impact is included in our estimated annualized effective tax rate.

A valuation allowance related to changes in forecasts of income in future periods as well as other items not related to the current year is recorded discretely.

AIG | First Quarter 2025 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 16.

After factoring in multiple data points and assessing the relative weight of all positive and negative evidence, we concluded that a valuation allowance of $ 300 million should remain on a portion of AIG's U.S.

federal consolidated income tax group tax attribute carryforwards that are not more likely than not to be realized.

Accordingly, during the nine months ended September 30, 2024, we recorded no change in valuation allowance.

For the nine months ended September 30, 2024, recent changes in market conditions, including changes in interest rates, impacted the unrealized tax gains and losses in the available for sale securities portfolios of our general insurance and non-insurance companies, resulting in a decrease to deferred tax assets related to net unrealized tax capital losses.

Accordingly, during the three months ended March 31, 2025, we recorded no change in valuation allowance.

For the three months ended March 31, 2025, recent changes in market conditions, including changes in interest rates, impacted the unrealized tax gains and losses in the available for sale securities portfolios of our general insurance and non-insurance companies, resulting in a decrease to deferred tax assets related to net unrealized tax capital losses.

The deferred tax assets relate to the unrealized tax capital losses for which the carryforward period has not yet begun.

As of September 30, 2024, based on all available evidence, we concluded that a valuation allowance of $ 369 million is necessary on a portion of the deferred tax assets related to unrealized tax capital losses that are not more-likely-than-not to be realized.

For the three and nine months ended September 30, 2024, we recorded a decrease in valuation allowance of $ 204 million and $ 181 million, respectively, associated with the unrealized tax capital losses in AIG's available for sale securities portfolio.

As of March 31, 2025, based on all available evidence, we concluded that a valuation allowance of $ 394 million is necessary on deferred tax assets related to unrealized tax capital losses that are not more-likely-than-not to be realized.

For the three months ended March 31, 2025, we recorded a decrease in valuation allowance of $ 115 million associated with the unrealized tax capital losses in AIG's available for sale securities portfolio.

The valuation allowance decrease was allocated to other comprehensive income.

For the nine months ended September 30, 2024, we recognized a net $ 15 million decrease in deferred tax asset valuation allowance associated with certain foreign jurisdictions.

For the three months ended March 31, 2025, we recognized a net $ 2 million decrease in deferred tax asset valuation allowance associated with certain foreign jurisdictions.

TAX EXAMINATIONS

We are currently under examination by the IRS for the tax years 2011 through 2019, and are engaging in the Appeals process for certain disagreed issues related to tax years 2007 through 2010.

We are currently under examination by the IRS for the tax years 2011 through 2019.

We continue to engage in the IRS Appeals process for certain disagreed issues related to tax years 2007 through 2010.

These tax years are still subject to ongoing computational review by IRS Appeals.

ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

At both September 30, 2024 and December 31, 2023, our unrecognized tax benefits, excluding interest and penalties, were $ 1.4 billion.

At both September 30, 2024 and December 31, 2023, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $ 1.4 billion.

At both March 31, 2025 and December 31, 2024, our unrecognized tax benefits, excluding interest and penalties, were $ 1.4 billion.

At both March 31, 2025 and December 31, 2024, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $ 1.4 billion.

Unrecognized tax benefits that would not affect the effective tax rate generally relate to such factors as the timing, rather than the permissibility of the deduction.

Interest and penalties related to unrecognized tax benefits are recognized in income tax expense.

At September 30, 2024 and December 31, 2023, we had accrued liabilities of $ 53 million and $ 52 million, respectively, for the payment of interest (net of the federal benefit) and penalties.

For the nine months ended September 30, 2024 and September 30, 2023, we accrued expense of $ 1 million and benefit of $ 5 million, respectively, for the payment of interest and penalties.

At March 31, 2025 and December 31, 2024, we had accrued liabilities of $ 41 million and $ 53 million, respectively, for the payment of interest (net of the federal benefit) and penalties.

For the three months ended March 31, 2025 and 2024, we accrued expense (benefit) of $( 12 ) million and $ 0 million , respectively, for the payment of interest and penalties.

Although it is reasonably possible that a change in the balance of unrecognized tax benefits may occur within the next 12 months, based on the information currently available, we do not expect any change to be material to our consolidated financial condition.

Subsequent Events

DEBT REDEMPTION

On October 21, 2024, AIG announced that we will redeem all of our outstanding Zero Coupon Callable Notes Due 2047 (the Notes) on November 22, 2024 (the Redemption Date) for a redemption price equal to 135.631 % of the face amount of the Notes outstanding on such Redemption Date.

As of October 21, 2024, $ 400,000,000 face amount of the Notes was outstanding.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations

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Throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), we use certain terms and abbreviations, which are summarized in the Glossary and Acronyms.

American International Group, Inc.

(AIG) has incorporated into this discussion a number of cross-references to additional information included throughout this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2023 (the 2023 Annual Report) to assist readers seeking additional information related to a particular subject.

In this Quarterly Report on Form 10-Q, unless otherwise mentioned or unless the context indicates otherwise, we use the terms “AIG,” “we,” “us,” “our” or "the Company" to refer to American International Group, Inc., a Delaware corporation, and its consolidated subsidiaries.

This discussion contains a number of cross-references to additional information included throughout this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2024 (the 2024 Annual Report) to assist readers seeking additional information related to a particular subject.

In this Quarterly Report on Form 10-Q, unless the context indicates otherwise, we use the terms “AIG,” “we,” “us,” “our” or "the Company" to refer to American International Group, Inc., a Delaware corporation, and its consolidated subsidiaries.

We use the term “AIG Parent” to refer solely to American International Group, Inc., and not to any of its consolidated subsidiaries.

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These statements may include, among other things, projections, goals and assumptions that relate to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expense reduction efforts, the outcome of contingencies such as legal proceedings, anticipated organizational, business or regulatory changes, the effect of catastrophic events, both natural and man-made, and macroeconomic and/or geopolitical events, anticipated dispositions, monetization and/or acquisitions of businesses or assets, the successful integration of acquired businesses, management succession and retention plans, exposure to risk, trends in operations and financial results, and other statements that are not historical facts.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

All forward-looking statements involve risks, uncertainties and other factors that may cause actual results and financial condition to differ, possibly materially, from the results and financial condition expressed or implied in the forward-looking statements.

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• the impact of adverse developments affecting economic conditions in the markets in which we operate in the U.S.

and globally, including adverse developments related to financial market conditions, macroeconomic trends, fluctuations in interest rates and foreign currency exchange rates, inflationary pressures, including social inflation, pressures on the commercial real estate market, an economic slowdown or recession, any potential U.S.

federal government shutdown and geopolitical events or conflicts, including the conflict between Russia and Ukraine and the conflict in Israel and the surrounding areas;

• the occurrence of catastrophic events, both natural and man-made, including the effects of climate change, geopolitical events and conflicts and civil unrest;

and globally, including financial market conditions, macroeconomic trends, changes in trade policies, including tariffs, fluctuations in interest rates and foreign currency exchange rates, inflationary pressures, including social inflation, pressures on the commercial real estate market, and geopolitical events or conflicts;

• the occurrence of catastrophic events, both natural and man-made, which may be exacerbated by the effects of climate change;

• disruptions in the availability or accessibility of our or a third party’s information technology systems, including hardware and software, infrastructure or networks, and the inability to safeguard the confidentiality and integrity of customer, employee or company data due to cyberattacks, data security breaches or infrastructure vulnerabilities;

• our ability to effectively implement restructuring initiatives and potential cost-savings opportunities;

• our ability to effectively implement technological advancements, including the use of artificial intelligence (AI), and respond to competitors' AI and other technology initiatives;

• the effectiveness of strategies to retain and recruit key personnel and to implement effective succession plans;

• our ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired businesses, and the anticipated benefits thereof;

• the effects of changes in laws and regulations, including those relating to privacy, data protection, cybersecurity and AI, and the regulation of insurance, in the U.S.

and other countries in which we operate;

• concentrations in our investment portfolios, including our continuing equity market exposure to Corebridge Financial, Inc.

(Corebridge);

• changes in the valuation of our investments;

• our reliance on third-party investment managers;

• changes in the valuation of our investments, including Corebridge common stock;

• nonperformance or defaults by counterparties;

• our reliance on third parties to provide certain business and administrative services;

• availability of adequate reinsurance or access to reinsurance on acceptable terms;

• our ability to adequately assess risk and estimate related losses as well as the effectiveness of our enterprise risk management policies and procedures;

• changes in judgments or assumptions concerning insurance underwriting and insurance liabilities;

• concentrations of our insurance, reinsurance and other risk exposures;

• nonperformance or defaults by counterparties;

• our ability to adequately assess risk and estimate related losses as well as the effectiveness of our enterprise risk management policies and procedures, including with respect to business continuity and disaster recovery plans;

• availability of adequate reinsurance or access to reinsurance on acceptable terms;

• changes to tax laws in the U.S.

and other countries in which we operate;

• the effectiveness of strategies to retain and recruit key personnel and to implement effective succession plans;

• the effects of sanctions and the failure to comply with those sanctions;

• difficulty in marketing and distributing products through current and future distribution channels;

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• changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill;

• the effects of sanctions, including those related to the conflict in the Middle East and between Russia and Ukraine, and the failure to comply with those sanctions;

• our ability to address evolving stakeholder expectations and regulatory requirements with respect to environmental, social and governance matters;

• our ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired businesses, and the anticipated benefits thereof

• our ability to address evolving global stakeholder expectations and regulatory requirements including with respect to environmental, social and governance matters;

• our ability to effectively implement restructuring initiatives and potential cost-savings opportunities;

• changes to sources of or access to liquidity;

• changes in accounting principles and financial reporting requirements or their applicability to us;

• the effects of changes in laws and regulations, including those relating to cybersecurity and data privacy, and the regulation of insurance, in the U.S.

and other countries in which we operate;

• changes to tax laws in the U.S.

and other countries in which we operate;

• the outcome of significant legal, regulatory or governmental proceedings;

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Additional information as to factors that may cause actual results to differ materially from those expressed or implied in any forward-looking statements is disclosed from time to time in other filings with the SEC.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

INDEX TO ITEM 2

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Other Operations

Investment Highlights in the Nine Months Ended September 30, 2024

Investment Highlights in the Three Months Ended March 31, 2025

Investment Strategies

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Repurchases of AIG Common Stock

Dividend Restrictions

Enterprise Risk Management

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Use of Non-GAAP Measures

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The non-GAAP financial measures we present may not be comparable to similarly-named measures reported by other companies.

We use the following operating performance measures because we believe they enhance the understanding of the underlying profitability of continuing operations and trends of our business segments.

We use the following operating performance measures because we believe they enhance the understanding of the underlying profitability of continuing operations and trends of our segments.

We believe they also allow for more meaningful comparisons with our insurance competitors.

When we use these measures, reconciliations to the most comparable GAAP measure are provided on a consolidated basis in the Consolidated Results of Operations section of this MD&A.

Book value per share, excluding investments related cumulative unrealized gains and losses in accumulated other comprehensive income (loss) (AOCI) adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets (collectively, Investments AOCI) (Adjusted book value per share) is used to show the amount of our net worth on a per share basis after eliminating the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions.

In addition, we adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets) since these fair value movements are economically transferred to Fortitude Re.

Adjusted book value per share is derived by dividing total AIG common shareholders’ equity, excluding Investments AOCI (AIG adjusted common equity) by total common shares outstanding.

Book Value per share, excluding Goodwill, Value of business acquired (VOBA), Value of distribution channel acquired (VODA) and Other intangible assets (Tangible book value per share) is used to provide a useful measure of the realizable shareholder value on a per share basis.

Tangible book value per share is derived by dividing Total AIG common shareholders’ equity, excluding intangible assets (AIG tangible common shareholders’ equity) by total common shares outstanding.

Book value per share, excluding investments related cumulative unrealized gains and losses recorded in Accumulated other comprehensive income (loss) (AOCI) adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets (collectively, Investments AOCI) (Adjusted book value per share) is used to show the amount of our net worth on a per share basis after eliminating the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions.

In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets) since these fair value movements are economically transferred to Fortitude Re.

Adjusted book value per share is derived by dividing total AIG common shareholders’ equity, excluding Investments AOCI (AIG adjusted common shareholders' equity) by total common shares outstanding.

Book value per share, excluding Investments AOCI, deferred tax assets (DTA) and AIG’s ownership interest in Corebridge (Core operating book value per share) is used to show the amount of our net worth on a per share basis after eliminating Investments AOCI, DTA and AIG’s ownership interest in Corebridge.

We believe this measure is useful to investors because it eliminates fair value of investments that can fluctuate significantly from period to period due to changes in market conditions.

We also exclude only the portion of DTA representing U.S.

tax attributes related to net operating loss carryforwards (NOLs) and corporate alternative minimum tax credits (CAMTCs) and foreign tax credits (FTCs) that have not yet been utilized.

We believe this measure is useful to investors because it eliminates the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions.

We also exclude the portion of DTA representing U.S.

tax attributes related to net operating loss carryforwards (NOLs), corporate alternative minimum tax credits (CAMTCs) and foreign tax credits (FTCs) that have not yet been utilized.

Amounts for interim periods are estimates based on projections of full-year attribute utilization.

As NOLs, CAMTCs and FTCs are utilized, the portion of the DTA utilized is included.

As NOLs, CAMTCs and FTCs are utilized, the corresponding portion of the DTA utilized is included.

We exclude AIG’s ownership interest in Corebridge since it is not a core long-term investment for AIG.

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Return on equity – Adjusted after-tax income excluding Investments AOCI (Adjusted return on equity) is used to show the rate of return on common shareholders’ equity excluding Investments AOCI.

We believe this measure is useful to investors because it eliminates fair value of investments which can fluctuate significantly from period to period due to changes in market conditions.

We believe this measure is useful to investors because it eliminates the fair value of investments which can fluctuate significantly from period to period due to changes in market conditions.

Adjusted return on equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG adjusted common shareholders’ equity.

Return on Equity – Adjusted After-tax Income, Excluding Goodwill, VOBA, VODA and Other Intangible assets (Return on tangible equity) is used to show the return on AIG tangible common shareholder’s equity, which we believe is a useful measure of realizable shareholder value.

We exclude Goodwill, VOBA, VODA and Other intangible assets from AIG common shareholders’ equity to derive AIG tangible common shareholders’ equity.

Return on AIG tangible common equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG tangible common equity.

Return on equity – Adjusted after-tax income excluding Investments AOCI, DTA and AIG’s ownership interest in Corebridge (Core operating return on equity) is used to show the rate of return on common shareholders’ equity excluding Investments AOCI, DTA and AIG’s ownership interest in Corebridge.

We believe this measure is useful to investors because it eliminates fair value of investments that can fluctuate significantly from period to period due to changes in market conditions.

We also exclude only the portion of DTA representing U.S.

tax attributes related to NOLs and CAMTCs and FTCs that have not yet been utilized.

We believe this measure is useful to investors because it eliminates the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions.

We also exclude the portion of DTA representing U.S.

tax attributes related to NOLs, CAMTCs and FTCs that have not yet been utilized.

Amounts for interim periods are estimates based on projections of full-year attribute utilization.

As NOLs, CAMTCs and FTCs are utilized, the portion of the DTA utilized is included.

As NOLs, CAMTCs and FTCs are utilized, the corresponding portion of the DTA utilized is included.

We exclude AIG’s ownership interest in Corebridge since it is not a core long-term investment for AIG.

This metric will provide greater insight as to the underlying profitability of our property and casualty business.

We believe this metric will provide investors with greater insight as to the underlying profitability of our property and casualty business.

Core operating return on equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG core operating shareholders’ equity.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Use of Non-GAAP Measures

Adjusted revenues exclude Net realized gains (losses), income from non-operating litigation settlements (included in Other income for GAAP purposes) and income from elimination of the international reporting lag.

Adjusted revenues is a GAAP measure for our segments.

Adjusted pre-tax income is derived by excluding the items set forth below from income from continuing operations before income tax.

This definition is consistent across our segments.

These items generally fall into one or more of the following broad categories:

legacy matters having no relevance to our current businesses or operating performance;

adjustments to enhance transparency to the underlying economics of transactions;

and measures that we believe to be common to the industry.

APTI is a GAAP measure for our segments.

Excluded items include the following:

• changes in the fair values of equity securities and AIG's ownership interest in Corebridge;

Adjusted pre-tax income (APTI) is derived by excluding the items set forth below from income from continuing operations before income tax:

• changes in the fair values of equity securities, AIG's investment in Corebridge and gain on sale of shares;

• net investment income on Fortitude Re funds withheld assets;

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• net loss reserve discount benefit (charge);

• pension expense related to lump sum payments to former employees;

• net results of businesses in run-off;

• non-operating pension expense;

• net gain or loss on divestitures and other;

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• income from elimination of the international reporting lag.

Adjusted after-tax income attributable to AIG common shareholders is derived by excluding the tax effected adjusted pre-tax income (APTI) adjustments described above, dividends on preferred stock and preferred stock redemption premiums, noncontrolling interest on net realized gains (losses), other non-operating expenses and the following tax items from net income attributable to AIG:

Adjusted after-tax income attributable to AIG common shareholders is derived by excluding the tax effected APTI adjustments described above, dividends on preferred stock and preferred stock redemption premiums, noncontrolling interest on net realized gains (losses), other non-operating expenses and the following tax items from net income attributable to AIG:

• deferred income tax valuation allowance releases and charges;

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In addition, investment returns, local taxes, cost of capital, regulation, product type and competition can have an effect on pricing and consequently on profitability as reflected in underwriting income and associated ratios.

Accident year loss and accident year combined ratios, as adjusted (Accident year loss ratio, ex-CATs and Accident year combined ratio, ex-CATs):

Accident year loss and accident year combined ratios, as adjusted (Accident year loss ratio, ex-CAT and Accident year combined ratio, ex-CAT):

both the accident year loss and accident year combined ratios, as adjusted, exclude catastrophe losses and related reinstatement premiums, prior year development, net of premium adjustments, and the impact of reserve discounting.

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Results from discontinued operations, including Corebridge, are excluded from all of these measures.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Critical Accounting Estimates

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• reinsurance assets, including the allowance for credit losses and disputes;

• goodwill impairment;

• allowance for credit losses on certain investments, primarily on loans and available for sale fixed maturity securities;

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To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected.

Certain critical accounting estimates were eliminated as a result of the Corebridge deconsolidation.

There were no changes to the remaining critical accounting estimates.

For further details, see Note 4 to the Condensed Consolidated Financial Statements.

For a detailed discussion of our critical accounting estimates, see Part II, Item 7.

For a complete discussion of our critical accounting estimates, see Part II, Item 7.

MD&A – Critical Accounting Estimates in the 2024 Annual Report.

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OPERATING STRUCTURE

In September 2022, AIG closed on the initial public offering of Corebridge.

Since September 2022 and through June 9, 2024, AIG sold portions of its interests in Corebridge through secondary public offerings.

We report the results of our businesses through three segments and Other Operations.

The three segments are North America Commercial, International Commercial and Global Personal.

Other Operations predominantly consists of Net Investment Income from our AIG Parent liquidity portfolio, Corebridge dividend income, corporate General operating expenses, and Interest expense.

Prior years’ presentations have been recast to conform to the new reportable segments.

Our General Insurance business (General Insurance) consists of our three segments and the Net investment income related to our insurance operations.

On June 9, 2024, AIG waived its right to majority representation on the Corebridge Board of Directors and one of AIG's designees resigned from the Corebridge Board of Directors as of June 9, 2024 (the Deconsolidation Date).

As a result, AIG met the requirements for the deconsolidation of Corebridge.

The historical financial results of Corebridge, for all periods presented, are reflected in these Condensed Consolidated Financial Statements as discontinued operations.

Due to share repurchases by Corebridge and sale of shares by AIG after the Deconsolidation Date, as of September 30, 2024, AIG held 48.6 percent of the outstanding common stock of Corebridge.

As a result of the Corebridge deconsolidation, we no longer present a Life and Retirement segment and no longer include asset management and Corebridge Life Holdings, Inc.

interest and general expenses within the Other Operations segment.

Historical results of Other Operations have been revised to reflect these changes.

Previously reported results for the General Insurance segment were not impacted by the deconsolidation of Corebridge.

As of September 30, 2024, AIG reports the results of its businesses through two segments – General Insurance and Other Operations.

General Insurance consists of two operating segments – North America and International.

Other Operations is primarily comprised of corporate and consolidation and eliminations.

AIG | Third Quarter 2024 Form 10-Q

For additional information on our segments, see Note 3 to the Condensed Consolidated Financial Statements, and for information regarding the separation of Life and Retirement, see Note 4 to the Condensed Consolidated Financial Statements.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Executive Summary

For additional information on our business segments, see Note 3 to the Condensed Consolidated Financial Statements, and for information regarding the separation of Life and Retirement and the sale of our global individual personal travel insurance and assistance business, see Notes 1 and 4 to the Condensed Consolidated Financial Statements.

Business Segments

General Insurance

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Western World Insurance Company and Glatfelter Insurance Group (Glatfelter).

Other Operations

Other Operations primarily consists of income from assets held by AIG Parent and other corporate subsidiaries, deferred tax assets related to tax attributes, corporate expenses and intercompany eliminations, results of our consolidated investment entities, General Insurance portfolios in run-off as well as the historical results of our legacy insurance lines ceded to Fortitude Re.

REGULATORY, INDUSTRY AND ECONOMIC FACTORS

Regulatory Environment

Our operations around the world are subject to regulation by many different types of regulatory authorities, including insurance and securities in the United States and abroad.

Our operations around the world are subject to regulation by many different types of regulatory authorities, including insurance and securities regulators in the United States and abroad.

The insurance and financial services industries are generally subject to close regulatory scrutiny and supervision.

For example, on March 6, 2024, the SEC adopted its climate-related disclosure rules, which require registrants to provide detailed climate-related disclosures in registration statements and periodic reports, but the rules have been stayed pending the completion of judicial review.

Other jurisdictions in which we operate, including the European Union, have adopted or are considering similar (and in some cases more stringent) climate- and sustainability-related reporting requirements, including through the Corporate Sustainability Reporting Directive.

In addition, the Corporate Sustainability Due Diligence Directive imposes due diligence requirements for identifying and mitigating potential environmental and human rights impacts of covered entities and their value chains, along with requirements to adopt and disclose a climate transition plan.

In the European Union, the EU Digital Operational Resilience Act (DORA) will require covered entities, including insurance intermediaries, reinsurance intermediaries and ancillary insurance intermediaries, other than micro-, small, or medium enterprises, to comply with a wide range of organizational and technical requirements to identify, manage and mitigate operational risk arising from use of network and information systems and, in particular, the use of third party information and communication technology service providers.

Covered entities will be required to comply with DORA by January 2025.

Our insurance subsidiaries are subject to regulation and supervision by the states and jurisdictions in which they do business.

We expect that the domestic and international regulations applicable to us and our regulated entities will continue to evolve for the foreseeable future.

For information regarding our regulation and supervision by different regulatory authorities in the United States and abroad, see Part I, Item 1.

Business – Regulation and Part I, Item 1A.

Risk Factors – Regulation in the 2023 Annual Report and Note 16 to the Condensed Consolidated Financial Statements.

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Executive Summary

Risk Factors – Regulation in the 2024 Annual Report.

Impact of Changes in the Interest Rate E nvironment

benchmark rates continued to fluctuate in 2024 as markets reacted to change in inflation trends, geopolitical risk and the decisions of the Board of Federal Reserve System.

Certain global benchmark interest rates continued to fluctuate in 2025 as markets reacted to change in inflation trends, geopolitical risk and uncertainties and the decisions of the global central banks.

Our Net investment income is impacted by market interest rates as well as the deployment of asset allocation strategies to enhance yield, manage duration and interest rate risk.

The change in interest rates and credit spreads impact our ability to reinvest future cash flows at rates equal or greater than the rates on sales and maturities.

The changes in interest rates and credit spreads impact our ability to reinvest future cash flows at rates equal or greater than the rates on sales and maturities.

For additional information on our investment and asset-liability management strategies, see Investments.

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Currency volatility remains acute.

Strengthening of the U.S.

dollar against the Euro, British pound and the Japanese yen (the Major Currencies) impacts income for our businesses with substantial international operations.

The value of the U.S.

dollar compared to the Euro, British pound and the Japanese yen (the Major Currencies) impacts income for our businesses with substantial international operations.

In particular, growth trends in net premiums written reported in U.S.

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The net effect on underwriting results, however, is significantly mitigated, as both revenues and expenses are similarly affected.

These currencies may continue to fluctuate, especially as a result of central bank responses to inflation, concerns regarding future economic growth and other macroeconomic factors, and such fluctuations will affect net premiums written growth trends reported in U.S.

These currencies may continue to fluctuate, especially as a result of concerns regarding international trade, future economic growth and other macroeconomic factors, and such fluctuations will affect net premiums written growth trends reported in U.S.

dollars, as well as financial statement line item comparability.

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The following table presents the average of the quarterly weighted average exchange rates of the Major Currencies, which have the most significant impact on our businesses:

Three Months Ended

September 30, Percentage Nine Months Ended

September 30, Percentage

Rate for 1 USD 2024 2023 Change 2024 2023 Change

Three Months Ended March 31,

Rate for 1 USD 2025 2024 Percentage Change

Major Currency:

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Unless otherwise noted, references to the effects of foreign exchange in the General Insurance discussion of results of operations are with respect to movements in the Major Currencies included in the preceding table.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Consolidated Results of Operations

Consolidated Results of Operations

The following section provides a comparative discussion of our consolidated results of operations on a reported basis for the three and nine months ended September 30, 2024 and 2023.

The following section provides a comparative discussion of our consolidated results of operations on a reported basis for the three months ended March 31, 2025 and 2024.

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.

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

MD&A – Critical Accounting Estimates in the 2024 Annual Report.

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

Three Months Ended

September 30, Percentage

Change Nine Months Ended

September 30, Percentage

Three Months Ended March 31, Percentage

(in millions) 2025 2024

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Total net investment income 1,105 979 13

Net realized gains (losses):

Net realized gains (losses) - excluding Fortitude Re funds withheld assets and embedded derivative 8 (189) NM (238) (571) 58

Net realized losses on Fortitude Re funds withheld assets (18) (3) NM (38) (64) 41

Net realized gains (losses) on Fortitude Re funds withheld embedded derivative (157) 57 NM (158) (25) NM

Net realized losses:

Net realized losses - excluding Fortitude Re funds withheld assets and embedded derivative (60) (59) (2)

Net realized losses on Fortitude Re funds withheld assets (2) (19) 89

Net realized losses on Fortitude Re funds withheld embedded derivative (41) (9) (356)

Total net realized losses (103) (87) (18)

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Consolidated Results of Operations

Three Months Ended

September 30, Percentage

Change Nine Months Ended

September 30, Percentage

(in millions) 2024 2023 2024 2023

Other income 11 — NM

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Interest expense 92 116 (21)

Loss on extinguishment of debt — 21 NM 1 21 (95)

Net (gain) loss on divestitures and other 8 (101) NM (94) (89) (6)

Net gain on divestitures and other (3) — NM

Total benefits, losses and expenses 5,823 5,705 2

2 unchanged sentences

Income from continuing operations 698 797 (12)

Income (loss) from discontinued operations, net of income taxes (24) 2,046 NM (3,580) 2,472 NM

Net income (loss) 457 2,747 (83) (1,827) 4,351 NM

Net income (loss) attributable to noncontrolling interests (2) 720 NM 475 801 (41)

Net income (loss) attributable to AIG 459 2,027 (77) (2,302) 3,550 NM

Income from discontinued operations, net of income taxes — 803 NM

Net income 698 1,600 (56)

Net income attributable to noncontrolling interests — 384 NM

Net income attributable to AIG 698 1,216 (43)

Dividends on preferred stock and preferred stock redemption premiums — 22 NM

Net income (loss) attributable to AIG common shareholders $ 459 $ 2,020 (77) % $ (2,324) $ 3,528 NM %

(in millions, except per share data) September 30, 2024 December 31, 2023

Net income attributable to AIG common shareholders $ 698 $ 1,194 (42) %

(in millions, except per share data) March 31, 2025 December 31, 2024

Balance sheet data:

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Long-term debt 8,596 8,764

Debt of consolidated investment entities 162 231

Total AIG shareholders’ equity 41,431 42,521

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Adjusted book value per share 74.45 73.79

Tangible book value per share 65.37 59.60

Core operating book value per share 61.72 61.75

NET INCOME (LOSS) ATTRIBUTABLE TO AIG COMMON SHAREHOLDERS

Three Months Ended September 30, 2024 and 2023 Comparison

Net income (loss) attributable to AIG common shareholders decreased $1.6 billion due to the following:

• a decrease in Income (loss) from discontinued operations, net of income taxes of $2.1 billion primarily as a result of the inclusion of Corebridge net income in 2023;

• a decrease in underwriting income driven by unfavorable prior year loss reserve development of $187 million which does not reflect the benefit of recoveries under a retroactive adverse development cover, as well as the sale of AIG Re and the impact of mix change, partially offset by portfolio growth.

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 realized gains excluding Fortitude Re funds withheld assets and embedded derivative of $197 million, primarily driven by a $95 million increase in foreign exchange gains and lower losses on sales of securities of $86 million and higher derivative and hedge activity gains of $27 million, partially offset by lower sales on alternative investments of $43 million;

• an increase in Net investment income of $117 million primarily driven by dividends received from Corebridge of $65 million, an increase in the fair value of equity securities of $29 million, an increase in the fair value of fixed maturity securities where we elected the fair value option of $25 million as a result of the higher interest rate environment and higher returns on our alternative investments of $23 million, partially offset by changes in Corebridge stock price of $(35) million;

• a decrease in income attributable to noncontrolling interest of $722 million primarily driven by the deconsolidation of Corebridge;

• a decrease in income tax expense of $231 million as a result of lower income from continuing operations.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Consolidated Results of Operations

Nine Months Ended September 30, 2024 and 2023 Comparison

Net income (loss) attributable to AIG common shareholders decreased $5.9 billion due to the following:

• a decrease in Income (loss) from discontinued operations, net of income taxes of $6.1 billion primarily as a result of the loss on deconsolidation of Corebridge of $4.7 billion and Corebridge net income in 2023;

• a decrease in underwriting income driven by unfavorable prior year reserve development of $79 million, which does not reflect the benefit of recoveries under a retroactive adverse development cover, as well as the sales of AIG Re and Crop Risk Services, partially offset by improved portfolio performance and growth;

• an increase in income tax expense of $62 million as a result of prior year discrete items.

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 $405 million primarily driven by dividends received from Corebridge of $133 million and changes in its stock price of $30 million, higher income on available for sale fixed maturity securities of $144 million and an increase in the fair value of equity securities of $51 million, partially offset by lower returns on our alternative investments of $30 million;

• an increase in Net realized gains excluding Fortitude Re funds withheld assets and embedded derivative of $333 million, primarily driven by a $232 million decrease in losses from sales of securities, lower derivative and hedge activity losses of $71 million and a $51 million increase in foreign exchange gains, partially offset by lower sales on alternative investments of $30 million;

• a decrease in net income attributable to noncontrolling interest of $326 million primarily driven by the deconsolidation of Corebridge.

NET INCOME (LOSS) ATTRIBUTABLE TO AIG COMMON SHAREHOLDERS

Three Months Ended March 31, 2025 and 2024 Comparison

Net income (loss) attributable to AIG common shareholders decreased $496 million due to the following:

• a decrease in Income (loss) from discontinued operations, net of income taxes of $803 million as a result of the deconsolidation of Corebridge;

• a decrease in underwriting income primarily driven by higher catastrophe losses of $419 million partially offset by favorable prior year reserve development of $33 million, which does not reflect the benefit of recoveries under a retroactive adverse development cover, as well as lower expense ratio.

The decrease in Net income (loss) attributable to AIG common shareholders was partially offset by the following:

• a decrease in net income attributable to noncontrolling interest of $384 million primarily driven by Corebridge;

• an increase in Net investment income of $126 million primarily driven by dividends received from Corebridge of $31 million and changes in its stock price of $209 million, partially offset by a decrease in the fair value of equity securities of $79 million.

INCOME TAX EXPENSE ANALYSIS

For the three months ended September 30, 2024 and 2023, the effective tax rate on income (loss) from continuing operations was 25.9 percent and 36.3 percent, respectively.

For the nine months ended September 30, 2024 and 2023, the effective tax rate on income (loss) from continuing operations was 24.6 percent and 21.3 percent, respectively.

For the three months ended March 31, 2025 and 2024, the effective tax rate on income (loss) from continuing operations was 27.3 percent and 24.7 percent, respectively.

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

NON-GAAP RECONCILIATIONS

The following table presents 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.

The following table presents reconciliations of Book value per share to Adjusted 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.

September 30, December 31,

March 31, December 31,

(in millions, except per share data) 2025 2024

Total AIG shareholders' equity $ 45,039 $ 45,351

Preferred equity — 485

Total AIG common shareholders' equity $ 41,431 $ 42,521

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Investments AOCI (1,779) (2,205)

Adjusted common shareholders' equity $ 46,582 $ 54,069

Total AIG common shareholders' equity $ 45,039 $ 44,866

Less Intangible Assets:

Goodwill 3,453 3,422

Value of distribution channel acquired 132 145

Other intangibles 249 249

Total intangibles assets 3,834 3,816

AIG tangible common shareholders' equity $ 41,205 $ 41,050

AIG adjusted common shareholders' equity $ 43,210 $ 44,726

Total AIG common shareholders' equity $ 41,431 $ 42,521

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AIG core operating shareholders' equity $ 35,822 $ 37,427

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Consolidated Results of Operations

September 30, December 31,

(in millions, except per share data) 2024 2023

Total common shares outstanding 580.4 606.1

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Adjusted book value per share 74.45 73.79

Tangible book value per share 65.37 59.60

Core operating book value per share 61.72 61.75

The following table presents 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.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Consolidated Results of Operations

The following table presents reconciliations of Return on equity to Adjusted return on equity and Core operating return on equity, which are non-GAAP measures.

For additional information, see Use of Non-GAAP Measures.

Three Months Ended

September 30, Nine Months Ended

September 30, Year Ended

March 31, Year Ended

(dollars in millions) 2025 2024 2024

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Average AIG common shareholders' equity $ 41,976 $ 44,126 $ 44,051

Average intangibles 3,813 3,824 3,811 4,134 4,070

Average AIG tangible common shareholders' equity $ 40,929 $ 36,910 $ 40,623 $ 37,062 $ 37,860

Average AIG common shareholders' equity $ 44,742 $ 40,734 $ 44,434 $ 41,196 $ 41,930

Average AIG's ownership interest in Corebridge 3,914 6,666 6,770

4 unchanged sentences

Adjusted return on equity 6.4 6.4 6.6

Return on tangible equity 7.8 8.1 8.0 8.2 8.4

Core operating return on equity 7.7 9.6 9.1

The following table presents a reconciliation of revenues to adjusted revenues

Three Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2024 2023 2024 2023

Revenues $ 6,751 $ 7,267 $ 20,074 $ 21,412

Changes in the fair values of equity securities and AIG's investment in Corebridge (25) (31) (172) (93)

Other (income) expense - net 1 (17) (16) (40)

Net investment income on Fortitude Re funds withheld assets (51) (29) (123) (106)

Net realized losses on Fortitude Re funds withheld assets 18 3 38 64

Net realized (gains) losses on Fortitude Re funds withheld embedded derivative 157 (57) 158 25

Net realized (gains) losses (a)

(8) 191 232 577

Non-operating litigation reserves and settlements — — — (1)

Net impact from elimination of international reporting lag (b)

Adjusted revenues $ 6,843 $ 7,327 $ 20,191 $ 21,834

(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.

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Consolidated Results of Operations

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:

Three Months Ended September 30, 2024 2023

Three Months Ended March 31, 2025 2024

(in millions, except per common share data) Pre-tax Total Tax

Interests (c)

Interests (a)

Tax Pre-tax Total Tax

Interests (c)

Interests (a)

Pre-tax income/net income, including noncontrolling interests $ 960 $ 262 $ — $ 698 $ 1,058 $ 261 $ — $ 1,600

Noncontrolling interests 2 2 (720) (720)

Noncontrolling interests (a)

— — (384) (384)

Pre-tax income/net income attributable to AIG - including discontinued operations $ 960 $ 262 $ — $ 698 $ 1,058 $ 261 $ (384) $ 1,216

3 unchanged sentences

6 — (6) 3 — (3)

Deferred income tax valuation allowance (releases) charges

9 — (9) (5) — 5

Changes in the fair values of equity securities and AIG's investment in Corebridge (25) (5) — (20) (31) (6) — (25)

Loss on extinguishment of debt and preferred stock redemption premiums — — — — 21 4 — 17

Net investment income on Fortitude Re funds withheld assets (51) (11) — (40) (29) (6) — (23)

Net realized losses on Fortitude Re funds withheld assets 18 4 — 14 3 — — 3

Net realized (gains) losses on Fortitude Re funds withheld embedded derivative 157 33 — 124 (57) (12) — (45)

Net realized (gains) losses (a)

(7) (27) — 20 190 42 — 148

(Income) loss from discontinued operations 24 (2,046)

Net gain on divestitures and other 8 28 — (20) (101) (21) — (80)

Unfavorable (favorable) prior year development and related amortization changes ceded under retroactive reinsurance agreements 126 27 — 99 (75) (16) — (59)

Net loss reserve discount charge 29 6 — 23 5 1 — 4

Pension expense related to lump sum payments to former employees — — — — 8 2 — 6

Integration and transaction costs associated with acquiring or divesting businesses 22 5 — 17 2 — — 2

Restructuring and other costs 137 28 — 109 49 10 — 39

Non-recurring costs related to regulatory or accounting changes 4 1 — 3 4 1 — 3

Noncontrolling interests (c)

(2) (2) 720 720

Adjusted pre-tax income/Adjusted after-tax income attributable to AIG common shareholders $ 1,067 $ 269 $ — $ 798 $ 1,089 $ 336 $ — $ 746

Weighted average diluted shares outstanding 647.4 718.7

Income per common share attributable to AIG common shareholders (diluted) $ 0.71 $ 2.81

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

$ 1.23 $ 1.04

Nine Months Ended September 30, 2024 2023

(in millions, except per common share data) Pre-tax Total Tax

Interests (c)

Tax Pre-tax Total Tax

Interests (c)

Pre-tax income/net income (loss), including noncontrolling interests $ 2,324 $ 571 $ — $ (1,827) $ 2,388 $ 509 $ — $ 4,351

Noncontrolling interests (475) (475) (801) (801)

Pre-tax income/net income (loss) attributable to AIG - including discontinued operations $ 2,324 $ 571 $ (475) $ (2,302) $ 2,388 $ 509 $ (801) $ 3,550

Dividends on preferred stock and preferred stock redemption premiums 22 22

Net income (loss) attributable to AIG common shareholders $ (2,324) $ 3,528

Changes in uncertain tax positions and other tax adjustments

8 — (8) 175 — (175)

Deferred income tax valuation allowance (releases) charges

Deferred income tax valuation allowance releases

2 — (2) 5 — (5)

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Net realized losses on Fortitude Re funds withheld embedded derivative 41 9 — 32 9 2 — 7

Net realized losses (a)

Net realized (gains) losses (b)

66 (38) — 104 55 7 — 48

(Income) loss from discontinued operations 3,580 (2,472)

Income from discontinued operations — (803)

Net gain on divestitures and other (3) (1) — (2) — — — —

Unfavorable (favorable) prior year development and related amortization changes ceded under retroactive reinsurance agreements 66 14 — 52 (112) (24) — (88)

Non-operating litigation reserves and settlements (11) (2) — (9) — — — —

Unfavorable prior year development and related amortization changes ceded under retroactive reinsurance agreements 9 2 — 7 2 — — 2

Net loss reserve discount charge 17 3 — 14 76 16 — 60

Pension expense related to lump sum payments to former employees — — — — 62 13 — 49

Integration and transaction costs associated with acquiring or divesting businesses 37 8 — 29 10 2 — 8

Restructuring and other costs (d)

Net results of businesses in run-off (c)

(5) (1) — (4) (7) (1) — (6)

Non-operating pension expense 5 1 — 4 — — — —

Integration and transaction costs associated with acquiring or divesting businesses 5 1 — 4 (3) (1) — (2)

Restructuring and other costs 76 16 — 60 67 14 — 53

Non-recurring costs related to regulatory or accounting changes 4 1 — 3 4 1 — 3

Net impact from elimination of international reporting lag (b)

— — — — (12) (3) — (9)

Noncontrolling interests (c)

475 475 801 801

Noncontrolling interests (a)

Adjusted pre-tax income (loss)/Adjusted after-tax income (loss) attributable to AIG common shareholders $ 909 $ 207 $ — $ 702 $ 1,153 $ 284 $ — $ 862

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Consolidated Results of Operations

Nine Months Ended September 30, 2024 2023

(in millions, except per common share data) Pre-tax Total Tax

Interests (c)

Tax Pre-tax Total Tax

Interests (c)

Weighted average diluted shares outstanding

Income (loss) per common share attributable to AIG common shareholders (diluted)

Income per common share attributable to AIG common shareholders (diluted)

$ 1.16 $ 1.74

1 unchanged sentence

$ 1.17 $ 1.25

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

(c) Noncontrolling interest primarily relates to Corebridge and is the portion of Corebridge earnings that AIG did not own.

(a) 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.

(d) In the three and nine months ended September 30, 2024, Restructuring and other costs increased primarily as a result of employee-related costs, including severance, and real estate impairment charges.

The historical results of Corebridge owned by AIG are reflected in Income (loss) from discontinued operations, net of income taxes.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Consolidated Results of Operations

(b) 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.

(c) In the fourth quarter of 2024, AIG realigned and began excluding the net results of run-off businesses previously reported in Other Operations from Adjusted pre-tax income.

Historical results have been recast to reflect these changes.

PRE-TAX INCOME (LOSS) COMPARISON

Pre-tax income was $649 million and $1.1 billion in the three months ended September 30, 2024 and 2023, respectively.

Pre-tax income was $2.3 billion and $2.4 billion in the nine months ended September 30, 2024 and 2023, respectively.

Pre-tax income was $960 million and $1.1 billion in the three months ended March 31, 2025 and 2024, 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 was $1.1 billion and $1.1 billion in the three months ended September 30, 2024 and 2023, respectively.

Adjusted pre-tax income was $3.2 billion and $3.1 billion in the nine months ended September 30, 2024 and 2023, respectively.

Adjusted pre-tax income was $909 million and $1.2 billion in the three months ended March 31, 2025 and 2024, respectively.

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

Business Segment Operations

Our business operations consist of General Insurance and Other Operations.

General Insurance consists of two operating segments:

North America and International.

Other Operations is primarily comprised of corporate and consolidation and eliminations.

The following table summarizes Adjusted pre-tax income (loss) from our business segment operations.

See also Note 3 to the Condensed Consolidated Financial Statements.

Three Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2024 2023 2024 2023

General Insurance

North America - Underwriting income $ 37 $ 235 $ 424 $ 886

International - Underwriting income 400 376 1,039 821

Net investment income 773 756 2,281 2,227

General Insurance 1,210 1,367 3,744 3,934

Other Operations

Other Operations before consolidation and eliminations (141) (271) (496) (815)

The following table presents a reconciliation of General Insurance and Other Operations Net investment income and other/pre-tax income (loss) to Net investment income and other, APTI basis/adjusted pre-tax income (loss):

Three Months Ended March 31, 2025 2024

General Insurance Other Operations General Insurance Other Operations

(in millions) Net

and Other Pre-tax

Net investment income and other/Pre-tax income (loss) $ 756 $ 853 $ 360 $ 107 $ 814 $ 1,191 $ 165 $ (133)

Consolidation and Eliminations — — (1) — — — (3) —

Other Operations (143) (278) (499) (835)

Adjusted pre-tax income $ 1,067 $ 1,089 $ 3,245 $ 3,099

AIG | Third Quarter 2024 Form 10-Q

Other income (expense) - net — — (9) — (12) — 8 —

Changes in the fair values of equity securities and AIG's investment in Corebridge (20) (20) (197) (197) (35) (35) (53) (53)

Net investment income on Fortitude Re funds withheld assets 1 1 (41) (41) — — (39) (39)

Net realized (gains) losses on Fortitude Re funds withheld assets — 2 — — — — — 19

Net realized (gains) losses on Fortitude Re funds withheld embedded derivative — — — 41 — — — 9

Net realized (gains) losses (1) 53 3 13 (5) 88 (2) (33)

Net loss (gain) on divestitures and other — 6 — (9) — — — —

Non-operating litigation reserves and settlements — — — (11) — — — —

Unfavorable (favorable) prior year development and related amortization changes ceded under retroactive reinsurance agreements — 14 — (5) — 7 — (5)

Net loss reserve discount (benefit) charge — 17 — — — 76 — —

Net results of businesses in run-off — — (5) (5) — — (3) (7)

Non-operating pension expense — 4 — 1 — — — —

Integration and transaction costs associated with acquiring or divesting businesses — — — 5 — — — (3)

Restructuring and other costs — 45 — 31 — 27 — 40

Non-recurring costs related to regulatory or accounting changes — 4 — — — 4 — —

Net investment income and other, APTI basis/Adjusted pre-tax income (loss) $ 736 $ 979 $ 110 $ (70) $ 762 $ 1,358 $ 73 $ (205)

Business Segment Operations

We report the results of our businesses through three segments and Other Operations.

The three segments are North America Commercial, International Commercial and Global Personal.

Other Operations predominantly consists of Net Investment Income from our AIG Parent liquidity portfolio, Corebridge dividend income, corporate General operating expenses, and Interest expense.

General Insurance consists of our three segments and the Net investment income related to our insurance operations.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance

General Insurance

General Insurance is managed by our geographic markets of North America and International.

Commercial Lines is managed by our geographic markets of North America and International, while Personal Insurance is managed globally.

Our global presence is underpinned by our multinational capabilities to provide Commercial Lines and Personal Insurance products within these geographic markets.

PRODUCTS AND DISTRIBUTION

North America consists of insurance businesses in the United States, Canada and Bermuda.

International consists of regional insurance businesses in Japan, the United Kingdom, Europe, Middle East and Africa (EMEA region), Asia Pacific, Latin America and Caribbean, and China.

International also includes the results of Talbot as well as AIG’s Global Specialty business.

North America Commercial consists of insurance businesses in the United States, Canada and Bermuda.

International Commercial consists of insurance businesses in Japan, the United Kingdom, Europe, Middle East and Africa (EMEA region), Asia Pacific, Latin America and Caribbean, and China.

International Commercial also includes the results of Talbot as well as AIG’s Global Specialty business.

Global Personal consists primarily of insurance businesses in the United States as well as Japan, the United Kingdom, Europe, EMEA region, Asia Pacific, Latin America and Caribbean, and China.

Commercial Lines

Property & Short Tail:

Products include commercial and industrial property, including business interruption, as well as package insurance products and services that cover exposures to man-made and natural disasters.

3 unchanged sentences

Products include professional liability insurance for a range of businesses and risks, including directors and officers, mergers and acquisitions, fidelity, employment practices, fiduciary liability, cyber risk, kidnap and ransom, and errors and omissions insurance.

Global Specialty:

Products include marine, energy-related property insurance products, aviation, political risk, trade credit, trade finance and portfolio solutions.

On July 3, 2023, AIG completed the sale of Crop Risk Services, Inc.

(CRS) to American Financial Group, Inc.

and in substance, AIG exited the crop business.

For periods prior to the sale of CRS, the underwriting results are included in adjusted pre-tax income of General Insurance – North America.

On November 1, 2023, AIG completed the sale of Validus Reinsurance, Ltd.

(Validus Re), including AlphaCat Managers Ltd.

and Talbot Treaty reinsurance business to RenaissanceRe Holdings Ltd.

(RenaissanceRe).

For periods prior to the sale of Validus Re, the underwriting results are included in adjusted pre-tax income of General Insurance – North America.

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

Accident & Health:

Products include voluntary and sponsor-paid personal accident and supplemental health products for individuals, employees, associations and other organizations, as well as a broad range of travel insurance products and services for leisure and business travelers.

On June 26, 2024, AIG entered into a definitive agreement to sell its global individual personal travel insurance and assistance business to Zurich Insurance Group.

The agreement includes the Travel Guard business and its servicing capabilities, excluding our travel insurance businesses in Japan and our AIG joint venture arrangement in India.

Travel coverages offered through AIG’s Accident & Health business are also excluded from this agreement.

For additional information, see Note 4 to the Condensed Consolidated Financial Statements.

Personal Insurance

Global Accident & Health:

Products include group personal accident and business travel products for employees, associations and other organizations, and voluntary and sponsor-paid personal accident and supplemental health products for individuals.

Personal Lines:

Products include personal auto and personal property in selected markets, comprehensive extended warranty, device protection insurance, home warranty and related services, and insurance for high net-worth individuals offered through Private Client Select (PCS) in the U.S.

Products include personal auto and homeowners in selected markets, comprehensive extended warranty, device protection insurance, home warranty and related services, and insurance for high net-worth individuals offered through Private Client Select (PCS) in the U.S.

that covers auto, homeowners, umbrella, yacht, fine art and collections.

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance

General Insurance products in North America and International markets are distributed through various channels, including captive and independent agents, brokers, affinity partners, airlines and travel agents, and retailers.

Our global platform enables writing multinational and cross-border risks in both Commercial Lines and Personal Insurance.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance

BUSINESS STRATEGY

21 unchanged sentences

INDUSTRY AND ECONOMIC FACTORS

The results of General Insurance for the nine months ended September 30, 2024 reflect continued strong performance from our Commercial Lines portfolio and focused execution on our portfolio management strategies within Personal Insurance.

Across our North America and International Commercial Lines of business we have seen increased demand for our insurance products and strong growth in new business.

We continue to monitor the impact of inflation and other economic factors on rate adequacy and loss cost trends.

Similarly, we are monitoring monetary policy actions taken or anticipated to be taken by central banks and the corresponding impact on market interest rates.

General Insurance – North America

North America Commercial continues to pursue profitable growth.

While market discipline continues to support price increases across most lines, we are seeing capacity move back into the market in certain segments given pricing levels which is putting pressure on rates.

North America Commercial

North America Commercial continues to pursue profitable growth, while capacity in certain segments is putting pressure on rates.

We have focused on retaining our best accounts which has led to strong retention across the portfolio.

These retention rates are often coupled with an exposure limit management strategy to reduce volatility within the portfolio.

We continue to proactively identify segment growth areas as market conditions warrant through effective portfolio management, while non-renewing unprofitable business.

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance

Personal Insurance growth prospects are supported by the need for full life cycle products and coverage, increases in personal wealth accumulation, and awareness of insurance protection and risk management.

We compete in the high net worth market, accident and health insurance, travel insurance, and warranty services.

General Insurance – International

These retention rates are often coupled with continuing to manage exposure limits to reduce volatility within the portfolio.

We continue to proactively identify segment growth areas as market conditions warrant through effective portfolio management.

International Commercial

We are continuing to pursue growth in our most profitable lines of business and diversify our portfolio across all regions by expanding key business lines while remaining a market leader in key developed and developing markets.

We are maintaining our underwriting discipline, reducing gross and net limits where appropriate, utilizing reinsurance to reduce volatility, as well as continuing our risk selection strategy to improve profitability.

Personal Insurance focuses on individual customers, as well as group and corporate clients.

Although market competition within Personal Insurance has increased, we continue to benefit from underwriting quality and portfolio diversity.

We are maintaining our underwriting discipline, utilizing reinsurance to reduce volatility and continuing our risk selection strategy to improve profitability.

Global Personal

Global Personal serves individuals as well as group and corporate clients across a broad range of products, markets, and client profiles.

Amid competitive market conditions, we continue to benefit from improved underwriting quality and portfolio diversity, as well as investment in expanded capabilities and strategic distribution partnerships.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance

GENERAL INSURANCE RESULTS

Three Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2024 2023 Change 2024 2023 Change

Three Months Ended March 31,

(in millions) 2025 2024 Change

Underwriting results:

Net premiums written $ 4,526 $ 4,512 — %

Increase in unearned premiums (433) (40) NM (343) (1,786) 81

Decrease in unearned premiums 1,243 1,274 (2)

Net premiums earned 5,769 5,786 —

19 unchanged sentences

Prior year development, net of reinsurance and prior year premiums

2.6 2.7 (0.1) 1.4 1.6 (0.2)

Accident year loss ratio, as adjusted 57.3 56.6 0.7

1 unchanged sentence

(a) Consistent with our definition of APTI, excludes net 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.

The following table presents General Insurance net premiums written by operating segment, showing change on both reported and constant dollar basis:

Three Months Ended

September 30, Percentage Change in Nine Months Ended

September 30, Percentage Change in

The following table presents General Insurance net premiums written by segment, showing change on both reported and constant dollar basis:

Three Months Ended March 31, Percentage Change in

(in millions) 2025 2024 U.S.

dollars Original

Currency 2024 2023 U.S.

dollars Original

North America $ 3,077 $ 3,151 (2) % (2) % $ 7,771 $ 10,804 (28) % (28) %

International 3,303 3,311 — 2 10,054 10,160 (1) 2

North America Commercial $ 1,174 $ 1,033 14 % 14 %

International Commercial 2,027 1,939 5 8

Global Personal 1,325 1,540 (14) (11)

Total net premiums written $ 4,526 $ 4,512 — % 3 %

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance

The following tables present General Insurance accident year catastrophes (a) by geography and number of events:

(dollars in millions) # of

America International

Three Months Ended September 30, 2024

Flooding, rainstorms and other 3 $ — $ 15 $ 15

Windstorms and hailstorms 16 280 76 356

Winter storms 2 2 2 4

Wildfires 1 36 — 36

Earthquakes 1 — — —

Reinstatement premiums 6 — 6

Total catastrophe-related charges 23 $ 324 $ 93 $ 417

Three Months Ended September 30, 2023

Flooding, rainstorms and other 2 $ — $ 7 $ 7

Windstorms and hailstorms 23 188 70 258

Winter storms 2 (1) (2) (3)

Wildfires 2 139 19 158

Earthquakes 1 5 — 5

Reinstatement premiums 36 1 37

Total catastrophe-related charges 30 $ 367 $ 95 $ 462

Nine Months Ended September 30, 2024

Flooding, rainstorms and other 3 $ 2 $ 130 $ 132

The following tables present General Insurance accident year catastrophes (a) by segment:

(dollars in millions) North America

Commercial International

Personal Total

Three Months Ended March 31, 2025

Windstorms and hailstorms $ 25 $ 1 $ 2 $ 28

4 unchanged sentences

Total catastrophe-related charges $ 258 $ 70 $ 197 $ 525

Nine Months Ended September 30, 2023

Flooding, rainstorms and other 2 $ 10 $ 85 $ 95

Three Months Ended March 31, 2024

Windstorms and hailstorms $ 29 $ — $ 13 $ 42

Winter storms 43 — 7 50

Wildfires 2 149 19 168

Earthquakes — 15 — 15

2 unchanged sentences

(a) Natural catastrophe losses are generally weather or seismic events, in each case, having a net impact on AIG in excess of $10 million and man-made catastrophe losses, such as terrorism and civil unrest that exceed the $10 million threshold.

NORTH AMERICA RESULTS

Three Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2024 2023 Change 2024 2023 Change

NORTH AMERICA COMMERCIAL RESULTS

Three Months Ended March 31,

(in millions) 2025 2024 Change

Underwriting results:

Net premiums written $ 1,174 $ 1,033 14 %

Increase in unearned premiums (439) (72) NM (161) (1,550) 90

Decrease in unearned premiums 950 950 —

Net premiums earned 2,124 1,983 7

14 unchanged sentences

93.9 88.1 5.8

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance

Three Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2024 2023 Change 2024 2023 Change

Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:

2 unchanged sentences

Prior year development, net of reinsurance and prior year premiums

2.4 5.6 (3.2) 1.6 4.0 (2.4)

Accident year loss ratio, as adjusted 62.2 61.8 0.4

2 unchanged sentences

Business and Financial Highlights

Net Premiums Written Comparison for the Three Months Ended September 30, 2024 and 2023

Net premiums written decreased by $74 million due to a decline in Commercial Lines ($99 million), primarily driven by the sale of AIG Re, partially offset by growth in Casualty driven by pricing levels and new business production.

This decline in Commercial Lines was partially offset by higher production in Personal Insurance ($25 million), particularly in PCS driven by positive rate change and new business production.

Net Premiums Written Comparison for the Nine Months Ended September 30, 2024 and 2023

Net premiums written decreased by $3.0 billion due to a decline in Commercial Lines ($3.1 billion), driven by the sales of AIG Re and CRS.

Underwriting Income (Loss) Comparison for the Three Months Ended September 30, 2024 and 2023

Underwriting income decreased by $198 million primarily due to:

• lower net favorable prior year development (3.2 points or $128 million), with higher favorable development from Property and Financial Lines, while Casualty turned unfavorable driven by a large settlement of a legacy mass tort claim with most of the gross loss in accident years covered under the Adverse Development Cover;

• the sale of AIG Re.

This decrease was partially offset by portfolio growth.

Underwriting Income (Loss) Comparison for the Nine Months Ended September 30, 2024 and 2023

Net Premiums Written Comparison for the Three Months Ended March 31, 2025 and 2024

Net premiums written increased by $141 million primarily due to growth in Property and Casualty driven by new business production and strong retention.

Underwriting Income (Loss) Comparison for the Three Months Ended March 31, 2025 and 2024

Underwriting income decreased by $107 million primarily due to:

• lower net favorable prior year development (2.4 points or $259 million), primarily from Casualty development which turned unfavorable driven by a large settlement of a legacy mass tort claim with most of the gross loss in accident years covered under the Adverse Development Cover;

• the sales of AIG Re and Crop Risk Services.

This decrease was partially offset b y improved portfolio performance and growth.

INTERNATIONAL RESULTS

Three Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2024 2023 Change 2024 2023 Change

• higher Catastrophe losses (8.4 points or $186 million);

• a higher accident year loss ratio, as adjusted (0.4 points) due to changes in business mix.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance

This decrease was partially offset by:

• a lower expense ratio (2.0 points) reflecting a lower general operating expense ratio (1.9 points), primarily driven by expense reductions, and acquisition ratio (0.1 points) primarily driven by changes in business mix;

• higher net favorable prior year reserve development (1.0 points or $29 million), primarily driven by favorable development in Property.

INTERNATIONAL COMMERCIAL RESULTS

Three Months Ended March 31,

(in millions) 2025 2024 Change

Underwriting results:

Net premiums written $ 2,027 $ 1,939 5 %

(Increase) decrease in unearned premiums 6 32 (81) (182) (236) 23

Decrease in unearned premiums 24 72 (67)

Net premiums earned 2,051 2,011 2

6 unchanged sentences

Underwriting income $ 240 $ 330 (27) %

AIG | Third Quarter 2024 Form 10-Q

Loss ratio 57.4 54.1 3.3

Acquisition ratio 16.5 16.6 (0.1)

General operating expense ratio 14.3 12.9 1.4

Expense ratio 30.8 29.5 1.3

Combined ratio 88.2 83.6 4.6

Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:

Catastrophe losses and reinstatement premiums (3.4) (0.7) (2.7)

Prior year development, net of reinsurance and prior year premiums 0.6 0.1 0.5

Accident year loss ratio, as adjusted 54.6 53.5 1.1

Accident year combined ratio, as adjusted 85.4 83.0 2.4

Business and Financial Highlights

Net Premiums Written Comparison for the Three Months Ended March 31, 2025 and 2024

Net premiums written, excluding the unfavorable impact of foreign exchange ($65 million), increased by $153 million primarily due to growth in Property and Global Specialty driven by strength of renewal retentions and new business production.

Underwriting Income (Loss) Comparison for the Three Months Ended March 31, 2025 and 2024

Underwriting income decreased by $90 million primarily due to:

• higher catastrophe losses (2.7 points or $56 million);

• a higher expense ratio (1.3 points) reflecting an increase in the general operating expense ratio (1.4 points), partially offset by lower acquisition ratio (0.1 points) primarily driven by changes in business mix;

• a higher accident year loss ratio, as adjusted (1.1 points) due to changes in business mix.

This decrease was partially offset by:

• higher net favorable prior year reserve development (0.5 points or $7 million), primarily driven by favorable development in Global Specialty.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance

Three Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2024 2023 Change 2024 2023 Change

GLOBAL PERSONAL RESULTS

Three Months Ended March 31, Change

(in millions) 2025 2024 2025 vs 2024

Underwriting results:

Net premiums written $ 1,325 $ 1,540 (14) %

Decrease in unearned premiums 269 252 7

Net premiums earned 1,594 1,792 (11)

Losses and loss adjustment expenses incurred 1,062 995 7

Acquisition expenses:

Amortization of deferred policy acquisition costs 353 364 (3)

Other acquisition expenses 91 149 (39)

Total acquisition expenses 444 513 (13)

General operating expenses 214 254 (16)

Underwriting income (loss) $ (126) $ 30 NM %

Loss ratio 66.6 55.5 11.1

9 unchanged sentences

Business and Financial Highlights

Net Premiums Written Comparison for the Three Months Ended September 30, 2024 and 2023

Net premiums written, excluding the impact of unfavorable foreign exchange ($76 million), increased by $68 million due to:

• growth in Commercial Lines ($34 million), notably in Specialty and Property driven by strength of renewal retentions and new business production, partially offset by the sale of AIG Re and lower production in Financial Lines;

• growth in Personal Insurance ($34 million) driven by Personal Auto.

Net Premiums Written Comparison for the Nine Months Ended September 30, 2024 and 2023

Net premiums written, excluding the unfavorable impact of foreign exchange ($250 million), increased by $144 million primarily due to:

• growth in Personal Insurance ($85 million) driven by Personal Auto and Travel, partially offset by lower production in Warranty;

• growth in Commercial Lines ($59 million), notably in Property, Specialty and Casualty driven by strength of renewal retentions and new business production, partially offset by the sale of AIG Re and lower production in Financial Lines.

Underwriting Income (Loss) Comparison for the Three Months Ended September 30, 2024 and 2023

Underwriting income increased by $24 million primarily due to:

• net favorable prior year reserve development of $102 million in 2024 compared to net favorable prior year reserve development in 2023 of $19 million (2.8 points or $83 million), with higher favorable development in Specialty, and Property development which turned favorable, partially offset by Financial Lines development which turned unfavorable, and higher unfavorable development within Casualty driven by claim-specific emergence in European Excess Casualty on accident year 2016.

This incre ase was partially offset by a higher expense ratio (1.3 points) reflecting a higher acquisition ratio (0.9 points) and general operating expense ratio (0.4 points) primarily driven by changes in business mix.

Underwriting Income (Loss) Comparison for the Nine Months Ended September 30, 2024 and 2023

Underwriting income increased by $218 million primarily due to:

• net favorable prior year reserve development of $112 million in 2024 compared to net unfavorable prior year reserve development in 2023 of $65 million (1.9 points or $177 million), primarily as a result of higher favorable development in Specialty, and Property which turned favorable, partially offset by Financial Lines development which turned unfavorable, and higher unfavorable development within Casualty driven by claim-specific emergence in European Excess Casualty on accident year 2016;

• lower catastrophe losses (0.5 points or $59 million).

AIG | Third Quarter 2024 Form 10-Q

Net Premiums Written Comparison for the Three Months Ended March 31, 2025 and 2024

Net premiums written, excluding the unfavorable impact of foreign exchange ($46 million), decreased by $169 million due to the sale of AIG's global individual personal travel insurance and assistance business in December 2024 ($209 million), partially offset by growth in Personal Auto from positive rate change and new business production.

Underwriting Income (Loss) Comparison for the Three Months Ended March 31, 2025 and 2024

Underwriting loss of $126 million in 2025 as compared to underwriting income of $30 million in 2024 is primarily due to:

• higher catastrophe losses (11.2 points or $177 million);

• a higher accident year loss ratio, as adjusted (0.1 points) due to changes in business mix.

This decrease was partially offset by:

• a lower expense ratio (1.5 points) reflecting a decrease in the general operating expense ratio (0.8 points), as well as lower acquisition ratio (0.7 points) primarily driven by change in business mix;

• unfavorable prior year reserve development in 2024 (0.2 points or $6 million).

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Business Segment Operations | Other Operations

Other Operations

Other Operations predominantly consists of Net Investment Income from our AIG Parent liquidity portfolio, Corebridge dividend income, corporate General operating expenses, and Interest expense.

OTHER OPERATIONS RESULTS

Three Months Ended

September 30, Nine Months Ended

September 30,

(in millions) 2024 2023 Change 2024 2023 Change

Adjusted revenues:

Premiums $ (1) $ 123 NM % $ 83 $ 354 (77) %

Net investment income:

Interest and dividends 77 67 15 256 183 40

Other investment income (loss) 54 (9) NM 106 (32) NM

Investment expenses (6) (13) 54 (17) (21) 19

Total net investment income 125 45 178 345 130 165

Other income (1) 3 NM 3 6 (50)

Total adjusted revenues 123 171 (28) 431 490 (12)

Three Months Ended March 31,

(in millions) 2025 2024 Change

Net investment income and other $ 110 $ 73 51 %

Benefits, losses and expenses:

Losses and loss adjustment expenses incurred 7 114 (94) 78 329 (76)

Acquisition expenses (4) 16 NM 8 42 (81)

General operating expenses:

Corporate and Other 146 175 (17) 489 514 (5)

Corporate and other general operating expenses 85 158 (46)

Amortization of intangible assets 4 4 —

Total general operating expenses 150 179 (16) 502 536 (6)

Interest expense 91 115 (21)

1 unchanged sentence

Adjusted pre-tax loss before consolidation and eliminations (70) (204) 66

Consolidation and eliminations (2) (7) 71 (3) (20) 85

Consolidation and eliminations — (1) NM

Adjusted pre-tax loss* $ (70) $ (205) 66 %

THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 COMPARISON

Adjusted pre-tax loss before consolidation and eliminations was $141 million in 2024 compared to $271 million in 2023, a decrease of $130 million, primarily due to:

• higher net investment income of $80 million due to dividend income from Corebridge in 2024 compared to $0 in 2023 and on AIG Parent portfolio due to higher yields and higher average balance;

• lower interest expense of $22 million primarily driven by interest savings from $2.2 billion debt reduction, through cash tender offers and debt redemption and maturity in 2023 and 2024.

NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 COMPARISON

* In the fourth quarter of 2024, AIG realigned and began excluding the net results of run-off businesses previously reported in Other Operations from Adjusted pre-tax income.

Historical results have been recast to reflect these changes.

THREE MONTHS ENDED MARCH 31, 2025 AND 2024 COMPARISON

Adjusted pre-tax loss before consolidation and eliminations was $70 million in 2025 compared to $204 million in 2024, a decrease of $134 million, primarily due to:

• higher net investment income of $215 million due to dividend income from Corebridge in 2024 compared to $0 in 2023 and on AIG Parent portfolio due to higher yields and higher average balance;

• lower interest expense of $59 million primarily driven by interest savings from $2.6 billion debt repurchases, through cash tender offers and debt redemption and maturity in 2023 and 2024.

AIG | Third Quarter 2024 Form 10-Q

• higher net investment income and other of $37 million due to dividend income from Corebridge in 2025 of $ 31 million partially offset by lower income on AIG Parent portfolio due to lower yields;

• lower corporate and other general operating expenses of $73 million primarily driven by employee-related costs and other operating expenses;

• lower interest expense of $24 million primarily driven by interest savings from $2.0 billion debt repurchases, through cash tender offers and debt redemption and maturities in 2024.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Investments

5 unchanged sentences

and its investment advisory affiliates (BlackRock).

As of September 30, 2024, BlackRock manages $64 billion of our investment portfolio, consisting of liquid fixed income, certain private placements and private equity assets.

As of March 31, 2025, BlackRock manages $64 billion of our investment portfolio, consisting of liquid fixed income, certain private placements and private equity assets.

In addition, liquid fixed income assets associated with the Fortitude Re funds withheld asset portfolio were separately transferred to BlackRock for management in 2022.

INVESTMENT HIGHLIGHTS IN THE NINE MONTHS ENDED SEPTEMBER 30, 2024

INVESTMENT HIGHLIGHTS IN THE THREE MONTHS ENDED MARCH 31, 2025

• Blended investment yields on new investments are higher than blended rates on investments that were sold, matured or called during this period.

We continued to make investments in structured securities and other fixed maturity securities with attractive risk-adjusted return characteristics to improve yields and increase net investment income.

• Total Net investment income increased for the nine months ended September 30, 2024 compared to the same period in the prior year, primarily due to dividend income from AIG's equity in Corebridge, higher income on available for sale fixed maturity securities and short term instruments, partially offset by lower income from alternative investments and mortgage loans.

• Total Net investment income increased for the three months ended March 31, 2025 compared to the same period in the prior year, primarily due to change in fair value and dividend income from AIG's equity in Corebridge, higher income on available for sale fixed maturity securities and lower expenses, partially offset by lower income from short term instruments, mortgage loans and other invested assets.

INVESTMENT STRATEGIES

14 unchanged sentences

Over the past few years, hedge fund investments have been reduced.

AIG | Third Quarter 2024 Form 10-Q

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Investments

12 unchanged sentences

Although these alternative investments are subject to periodic earnings fluctuations, they have historically achieved yields in excess of the fixed maturity portfolio yields and have provided added diversification to the broader portfolio.

National Association of Insurance Commissioners (NAIC) Designations of Fixed Maturity Securities

The Securities Valuation Office (SVO) of the NAIC evaluates the investments of U.S.

insurers for statutory reporting purposes and assigns fixed maturity securities to one of six categories called NAIC Designations.

In general, NAIC Designations of ‘1’ highest quality, or ‘2’ high quality, include fixed maturity securities considered investment grade, while NAIC Designations of ‘3’ through ‘6’ generally include fixed maturity securities referred to as below investment grade.

NAIC Designations for non-agency Residential Mortgage Backed Securities (RMBS) and Commercial Mortgage Backed Securities (CMBS) are calculated using third party modeling results provided through the NAIC.

These methodologies result in an improved NAIC Designation for such securities compared to the rating typically assigned by the three major rating agencies.

The following tables summarize the ratings distribution of AIG subsidiaries’ fixed maturity security portfolio by NAIC Designation, and the distribution by composite AIG credit rating, which is generally based on ratings of the three major rating agencies.

For fixed maturity securities where no NAIC Designation is assigned or able to be calculated using third-party data, the NAIC Designation category used in the first table below reflects an internal rating.

The NAIC Designations presented below do not reflect the added granularity to the designation categories adopted by the NAIC in 2020, which further subdivide each category of fixed maturity securities by appending letter modifiers to the numerical designations.

For a full description of the composite AIG credit ratings, see – Credit Ratings below.

The following table presents the fixed maturity security portfolio categorized by NAIC Designation, at fair value:

September 30, 2024

(in millions)

NAIC Designation 1 2 Total

Grade 3 4 5 6 Total Below

Other fixed maturity securities $ 34,497 $ 13,478 $ 47,975 $ 1,946 $ 1,147 $ 168 $ 36 $ 3,297 $ 51,272

Mortgage-backed, asset-backed and collateralized 14,851 492 15,343 18 63 4 5 90 15,433

Total* $ 49,348 $ 13,970 $ 63,318 $ 1,964 $ 1,210 $ 172 $ 41 $ 3,387 $ 66,705

* Excludes $38 million of fixed maturity securities for which no NAIC Designation is available.

The following table presents the fixed maturity security portfolio categorized by composite AIG credit rating, at fair value:

September 30, 2024

(in millions)

Composite AIG Credit Rating AAA/AA/A BBB Total

Grade BB B CCC and Lower Total Below

Other fixed maturity securities $ 34,564 $ 13,417 $ 47,981 $ 1,783 $ 1,323 $ 185 $ 3,291 $ 51,272

Mortgage-backed, asset-backed and collateralized 13,526 606 14,132 49 117 1,135 1,301 15,433

Total* $ 48,090 $ 14,023 $ 62,113 $ 1,832 $ 1,440 $ 1,320 $ 4,592 $ 66,705

* Excludes $38 million of fixed maturity securities for which no NAIC Designation is available.

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Investments

CREDIT RATINGS

At September 30, 2024, approximately 64 percent of our fixed maturity securities were held by our U.S.

Approximately 93 percent of these securities were rated investment grade by one or more of the principal rating agencies.

Moody’s Investors Service Inc.

(Moody’s), Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc.

(S&P), or similar foreign rating services rate a significant portion of our foreign entities’ fixed maturity securities portfolio.

Rating services are not available for some foreign-issued securities.

We closely monitor the credit quality of the foreign portfolio’s non-rated fixed maturity securities.

At September 30, 2024, approximately 83 percent of such investments were either rated investment grade or, on the basis of analysis of our investment managers, were equivalent from a credit standpoint to securities rated investment grade.

Approximately 30 percent of the foreign entities’ fixed maturity securities portfolio is comprised of sovereign fixed maturity securities supporting policy liabilities in the country of issuance.

Composite AIG Credit Ratings

With respect to our fixed maturity securities, the credit ratings in the table below and in subsequent tables reflect:

(i) a composite of the ratings of the three major rating agencies, or when agency ratings are not available, the NAIC Designation assigned by the NAIC SVO (99 percent of total fixed maturity securities), or (ii) our internal ratings when these investments have not been rated by any of the major rating agencies or the NAIC.

The “Non-rated” category in those tables consists of fixed maturity securities that have not been rated by any of the major rating agencies, the NAIC or us.

For information regarding credit risks associated with investments see Part II, Item 7.

MD&A – Enterprise Risk Management in the 2023 Annual Report.

The following table presents the composite AIG credit ratings of our fixed maturity securities calculated on the basis of their fair value:

Available for Sale Other Total

(in millions) September 30,

2024 December 31,

2023 September 30,

2024 December 31,

2023 September 30,

2024 December 31,

Other fixed maturity securities

AAA $ 6,131 $ 5,625 $ 15 $ 16 $ 6,146 $ 5,641

AA 12,673 12,775 122 145 12,795 12,920

A 15,502 14,758 121 73 15,623 14,831

BBB 13,299 12,992 118 96 13,417 13,088

Below investment grade 3,272 3,653 2 — 3,274 3,653

Non-rated 55 167 — — 55 167

Total $ 50,932 $ 49,970 $ 378 $ 330 $ 51,310 $ 50,300

Mortgage-backed, asset-backed and collateralized

AAA $ 7,781 $ 6,650 $ 137 $ 77 $ 7,918 $ 6,727

AA 4,904 6,065 92 108 4,996 6,173

A 578 614 34 29 612 643

BBB 517 517 89 81 606 598

Below investment grade 1,268 1,426 33 30 1,301 1,456

Non-rated — — — 8 — 8

Total $ 15,048 $ 15,272 $ 385 $ 333 $ 15,433 $ 15,605

AAA $ 13,912 $ 12,275 $ 152 $ 93 $ 14,064 $ 12,368

AA 17,577 18,840 214 253 17,791 19,093

A 16,080 15,372 155 102 16,235 15,474

BBB 13,816 13,509 207 177 14,023 13,686

Below investment grade 4,540 5,079 35 30 4,575 5,109

Non-rated 55 167 — 8 55 175

Total $ 65,980 $ 65,242 $ 763 $ 663 $ 66,743 $ 65,905

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Investments

Available-for-Sale Investments

The following table presents the fair value of our available-for-sale securities:

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

Bonds available for sale:

9 unchanged sentences

Total bonds available for sale* $ 66,027 $ 64,006

* At September 30, 2024 and December 31, 2023, the fair value of bonds available for sale held by us that were below investment grade or not rated totaled $3.1 billion and $5.2 billion, respectively.

* At March 31, 2025 and December 31, 2024, the fair value of bonds available for sale held by us that were below investment grade or not rated totaled $5.5 billion and $3.6 billion, respectively.

The following table presents the fair value of our aggregate credit exposures to non-U.S.

governments for our fixed maturity securities:

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

Canada $ 1,320 $ 1,384

Germany 964 929

Japan 567 555

United Kingdom 469 478

France 401 430

Germany 424 834

Australia 341 335

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Korea, Republic of 310 268

Malaysia 248 183

United Kingdom 306 416

Denmark 214 205

Malaysia 210 220

Singapore 200 204

Other 2,526 3,398

Total $ 6,749 $ 8,131

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Investments

The following table presents the fair value of our aggregate European credit exposures by major sector for our fixed maturity securities:

September 30, 2024 December 31,

March 31, 2025 December 31,

(in millions) Sovereign Financial

7 unchanged sentences

Ireland — 95 114 519 728 584

Italy 23 112 276 — 411 420

Spain 10 293 102 52 457 321

Italy 12 88 310 — 410 369

Denmark 214 45 21 — 280 257

1 unchanged sentence

Luxembourg — 78 80 — 158 157

Finland 20 75 7 1 103 95

Hungary 75 — 5 — 80 73

Other Euro-Zone 144 97 27 23 291 305

4 unchanged sentences

Sweden 101 195 38 — 334 291

Norway 85 39 16 — 140 150

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Investments

September 30, 2024 December 31,

(in millions) Sovereign Financial

Institution Non-Financial

Corporates Structured

Products Total

Jersey (Channel Islands) 3 — 2 91 96 94

Norway 47 42 6 — 95 110

Other - Remainder of Europe 38 3 9 2 52 50

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Investments in Municipal Bonds

At September 30, 2024, the U.S.

At March 31, 2025, the U.S.

municipal bond portfolio was composed primarily of essential service revenue bonds and high-quality tax-exempt bonds with 98 percent of the portfolio rated A or higher.

1 unchanged sentence

municipal bond portfolio by state and municipal bond type:

September 30, 2024

March 31, 2025

(in millions) State

6 unchanged sentences

Texas 1 115 110 226 265

Illinois 27 43 191 261 301

Massachusetts 51 12 134 197 199

2 unchanged sentences

Connecticut 38 3 83 124 125

New Jersey 3 2 135 140 200

Illinois 4 26 73 103 110

Georgia 50 4 24 78 79

Ohio 12 — 75 87 89

Hawaii 68 — 4 72 74

Oregon 13 45 13 71 71

Washington 5 10 46 61 61

New Jersey 1 1 57 59 58

All other states

1 unchanged sentence

$ 574 $ 462 $ 1,995 $ 3,031 $ 3,143

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Investments

Investments in Corporate Debt Securities

1 unchanged sentence

Industry Category

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

Financial institutions:

15 unchanged sentences

Total* $ 34,813 $ 31,826

* At September 30, 2024 and December 31, 2023, approximately 91 percent and 90 percent, respectively, of these investments were rated investment grade.

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Investments

Investments in RMBS

* At March 31, 2025 and December 31, 2024, approximately 89 percent and 88 percent, respectively, of these investments were rated investment grade.

Investments in Residential Mortgage Backed Securities (RMBS)

The following table presents the fair value of AIG’s RMBS available for sale securities:

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

Agency RMBS $ 4,976 $ 4,978

5 unchanged sentences

$ 9,052 $ 8,604

(a) Includes approximately $1.3 billion and $1.3 billion at September 30, 2024 and December 31, 2023, respectively, of certain RMBS that had experienced deterioration in credit quality since their origination.

(a) Includes approximately $1.3 billion at both March 31, 2025 and December 31, 2024, of certain RMBS that had experienced deterioration in credit quality since their origination.

This excludes impact of U.S.

1 unchanged sentence

For additional information on purchased credit deteriorated securities, see Note 6 to the Condensed Consolidated Financial Statements.

(b) The weighted average expected life was six years and seven years at September 30, 2024 and December 31, 2023, respectively.

Our investments guidelines for investing in RMBS, CLO and other asset-backed securities (ABS) take into consideration the quality of the originator, the manager, the servicer, security credit ratings, underlying characteristics of the mortgages, borrower characteristics, and the level of credit enhancement in the transaction.

Investments in CMBS

(b) The weighted average expected life was six years at both March 31, 2025 and December 31, 2024.

Our investments guidelines for investing in RMBS, collateralized loan obligations (CLO) and other asset-backed securities (ABS) take into consideration the quality of the originator, the manager, the servicer, security credit ratings, underlying characteristics of the mortgages, borrower characteristics, and the level of credit enhancement in the transaction.

Investments in Commercial Mortgage Backed Securities (CMBS)

The following table presents the fair value of our CMBS available for sale securities:

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

CMBS (traditional) $ 2,938 $ 3,102

Agency 348 574

Other 279 250

Total $ 3,565 $ 3,926

The fair value of CMBS holdings remained stable during the nine months ended September 30, 2024.

The fair value of CMBS holdings remained stable during the three months ended March 31, 2025.

The majority of our investments in CMBS are in tranches that contain substantial credit protection features through collateral subordination.

The majority of CMBS holdings are traditional conduit transactions, broadly diversified across property types and geographical areas.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Investments

Investments in CLO/ABS

The following table presents the fair value of our CLO/ABS available for sale securities by collateral type:

(in millions) September 30, 2024 December 31, 2023

(in millions) March 31, 2025 December 31, 2024

Collateral Type:

2 unchanged sentences

Total $ 5,662 $ 5,133

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Investments

Unrealized Losses of Fixed Maturity Securities

The following table shows the aging of the unrealized losses of fixed maturity securities, the extent to which the fair value is less than amortized cost or cost, and the number of respective items in each category:

September 30, 2024 Less Than or Equal Greater Than 20% Greater Than 50%

March 31, 2025 Less Than or Equal Greater Than 20% Greater Than 50%

to 20% of Cost (b)

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(d) Item count is by CUSIP by subsidiary.

The allowance for credit losses was $3 million for investment grade bonds and $37 million for below investment grade bonds as of September 30, 2024.

The allowance for credit losses was $4 million for investment grade bonds and $27 million for below investment grade bonds as of March 31, 2025.

Commercial Mortgage Loans

At September 30, 2024, we had direct commercial mortgage loan exposure of $3.7 billion.

At March 31, 2025, we had direct commercial mortgage loan exposure of $3.3 billion.

The following table presents the commercial mortgage loan exposure by location and class of loan based on amortized cost:

1 unchanged sentence

(dollars in millions) Apartments Offices Retail Industrial Hotel Others Total

September 30, 2024

March 31, 2025

California 21 $ 98 $ 249 $ 28 $ 56 $ 32 $ — $ 463 14 %

Texas 20 78 243 2 31 22 — 376 10

New York 18 44 192 70 20 32 — 358 11

Texas 19 78 200 2 31 21 — 332 10

Massachusetts 9 94 163 49 7 — — 313 10

New Jersey 21 125 7 — 50 — 10 192 5

Florida 11 68 — 61 8 38 — 175 5

Illinois 6 89 20 — — — — 109 3

New Jersey 18 80 — — 43 — 10 133 4

Pennsylvania 11 21 57 29 18 — — 125 4

Illinois 6 88 20 — — — — 108 3

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Investments

of Loans Class Percent

(dollars in millions) Apartments Offices Retail Industrial Hotel Others Total

Ohio 5 62 — 29 — — — 91 3

3 unchanged sentences

Total* 185 $ 1,117 $ 1,104 $ 409 $ 288 $ 252 $ 122 $ 3,292 100 %

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Investments

December 31, 2024

3 unchanged sentences

Massachusetts 9 94 156 49 7 — — 306 9

New Jersey 21 111 8 20 55 — 10 204 5

Florida 11 68 — 62 8 38 — 176 5

New Jersey 18 78 — — 43 — 10 131 4

Pennsylvania 10 18 52 29 18 — — 117 4

Illinois 6 88 20 — — — — 108 3

Ohio 5 62 — 29 — — — 91 3

Pennsylvania 8 14 39 36 5 — — 94 2

Colorado 7 17 32 32 — 6 — 87 2

Washington 5 49 — — — 11 — 60 2

Other states 31 134 33 63 49 6 — 285 8

2 unchanged sentences

* Does not reflect allowance for credit losses.

For additional information on commercial mortgage loans, see Note 7 to the Condensed Consolidated Financial Statements and Note 7 to the Consolidated Financial Statements in the 2023 Annual Report.

For additional information on commercial mortgage loans, see Note 7 to the Condensed Consolidated Financial Statements.

Net Realized Gains and Losses

The following table presents the components of Net realized gains (losses):

Three Months Ended September 30, 2024 2023

(in millions) Excluding

Assets Fortitude

Assets Total Excluding

Assets Fortitude

Sales of fixed maturity securities $ (66) $ (18) $ (84) $ (152) $ (4) $ (156)

Change in allowance for credit losses on fixed maturity securities 1 (1) — (7) — (7)

Change in allowance for credit losses on loans (3) (1) (4) (16) 3 (13)

Foreign exchange transactions 65 1 66 (30) (5) (35)

All other derivatives and hedge accounting 7 (2) 5 (20) 6 (14)

Sales of alternative investments (18) — (18) 25 — 25

Other 22 3 25 11 (3) 8

Net realized gains (losses) – excluding Fortitude Re funds withheld embedded derivative 8 (18) (10) (189) (3) (192)

Net realized gains (losses) on Fortitude Re funds withheld embedded derivative — (157) (157) — 57 57

Net realized gains (losses) $ 8 $ (175) $ (167) $ (189) $ 54 $ (135)

Nine Months Ended September 30, 2024 2023

Three Months Ended March 31, 2025 2024

(in millions) Excluding

12 unchanged sentences

Net realized gains (losses) $ (60) $ (43) $ (103) $ (59) $ (28) $ (87)

Higher Net realized gains excluding Fortitude Re funds withheld assets in the three months ended September 30, 2024 were primarily due to lower losses on sales of fixed maturity securities, higher gains on foreign exchange transactions and all other derivatives and hedge accounting compared to the prior year period.

Lower Net realized losses excluding Fortitude Re funds withheld assets in the nine months ended September 30, 2024 compared to 2023 were primarily due to lower losses on sales of fixed maturity securities and higher derivatives gains compared to the prior year period.

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Investments

Net realized losses excluding Fortitude Re funds withheld assets in the three months ended March 31, 2025 was flat compared to 2024.

Net realized gains (losses) on Fortitude Re funds withheld assets primarily reflect changes in the valuation of the modified coinsurance and funds withheld assets.

3 unchanged sentences

For additional information on our investment portfolio, see Note 6 to the Condensed Consolidated Financial Statements.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Investments

Change in Unrealized Gains and Losses on Investments

The change in net unrealized gains and losses on investments in the three and nine months ended September 30, 2024 was primarily attributable to a change in the fair value of fixed maturity securities.

For the three months ended September 30, 2024, net unrealized gains related to fixed maturity securities were $1.6 billion due primarily to lower interest rates and narrowing of credit spreads.

For the nine months ended September 30, 2024, net unrealized gains were $1.5 billion due to lower interest rates and narrowing of credit spreads.

The change in net unrealized gains and losses on investments in the three and nine months ended September 30, 2023 was primarily attributable to a change in the fair value of fixed maturity securities.

For the three months ended September 30, 2023, net unrealized losses related to fixed maturity securities were $670 million due primarily to an increase in interest rates.

For the nine months ended September 30, 2023, net unrealized gains were $159 million primarily due to widening of credit spreads.

The change in net unrealized gains and losses on investments in the three months ended March 31, 2025 was primarily attributable to a change in the fair value of fixed maturity securities.

For the three months ended March 31, 2025, net unrealized gains were $322 million due to lower interest rates and narrowing of credit spreads.

The change in net unrealized gains and losses on investments in the three months ended March 31, 2024 was primarily attributable to a change in the fair value of fixed maturity securities.

For the three months ended March 31, 2024, net unrealized losses were $132 million primarily due to widening of credit spreads.

For additional information on our investment portfolio, see Note 6 to the Condensed Consolidated Financial Statements.

CREDIT RATINGS

At March 31, 2025, approximately 61 percent of our fixed maturity securities were held by our U.S.

Approximately 90 percent of these securities were rated investment grade by one or more of the principal rating agencies.

Moody’s Investors Service Inc.

(Moody’s), Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc.

(S&P), or similar foreign rating services rate a significant portion of our foreign entities’ fixed maturity securities portfolio.

Rating services are not available for some foreign-issued securities.

We closely monitor the credit quality of the foreign portfolio’s non-rated fixed maturity securities.

At March 31, 2025, approximately 94 percent of such investments were either rated investment grade or, on the basis of analysis of our investment managers, were equivalent from a credit standpoint to securities rated investment grade.

Approximately 18 percent of the foreign entities’ fixed maturity securities portfolio is comprised of sovereign fixed maturity securities supporting policy liabilities in the country of issuance.

Composite AIG Credit Ratings

With respect to our fixed maturity securities, the credit ratings in the table below and in subsequent tables reflect:

(i) a composite of the ratings of the three major rating agencies, or when agency ratings are not available, the National Association of Insurance Commissioners (NAIC) Designation assigned by the NAIC Securities Valuation Office (SVO) (96 percent of total fixed maturity securities), or (ii) our internal ratings when these investments have not been rated by any of the major rating agencies or the NAIC.

The “Non-rated” category in those tables consists of fixed maturity securities that have not been rated by any of the major rating agencies, the NAIC or us.

For information regarding credit risks associated with investments, see Part II, Item 7.

MD&A – Enterprise Risk Management in the 2024 Annual Report.

The following table presents the composite AIG credit ratings of our fixed maturity securities calculated on the basis of their fair value:

Available for Sale Other Total

(in millions) March 31,

2025 December 31,

2024 March 31,

2025 December 31,

2024 March 31,

2025 December 31,

Other fixed maturity securities

AAA $ 4,032 $ 5,254 $ 14 $ 13 $ 4,046 $ 5,267

AA 9,134 9,599 79 80 9,213 9,679

A 16,768 14,420 107 114 16,875 14,534

BBB 13,495 12,839 153 145 13,648 12,984

Below investment grade 4,253 4,171 4 4 4,257 4,175

Non-rated 66 60 — — 66 60

Total $ 47,748 $ 46,343 $ 357 $ 356 $ 48,105 $ 46,699

Mortgage-backed, asset-backed and collateralized

AAA $ 9,732 $ 8,757 $ 130 $ 134 $ 9,862 $ 8,891

AA 6,468 6,765 57 89 6,525 6,854

A 463 482 94 49 557 531

BBB 431 470 85 88 516 558

Below investment grade 1,185 1,189 31 29 1,216 1,218

Non-rated — — — — — —

Total $ 18,279 $ 17,663 $ 397 $ 389 $ 18,676 $ 18,052

AAA $ 13,764 $ 14,011 $ 144 $ 147 $ 13,908 $ 14,158

AA 15,602 16,364 136 169 15,738 16,533

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Investments

Available for Sale Other Total

(in millions) March 31,

2025 December 31,

2024 March 31,

2025 December 31,

2024 March 31,

2025 December 31,

A 17,231 14,902 201 163 17,432 15,065

BBB 13,926 13,309 238 233 14,164 13,542

Below investment grade 5,438 5,360 35 33 5,473 5,393

Non-rated 66 60 — — 66 60

Total $ 66,027 $ 64,006 $ 754 $ 745 $ 66,781 $ 64,751

NAIC Designations of Fixed Maturity Securities

The SVO of the NAIC evaluates the investments of U.S.

insurers for statutory reporting purposes and assigns fixed maturity securities to one of six categories called NAIC Designations.

NAIC Designations for non-agency RMBS and CMBS are calculated using third party modeling results provided through the NAIC.

These methodologies result in an improved NAIC Designation for such securities compared to the rating typically assigned by the three major rating agencies.

The following table presents the fixed maturity security portfolio categorized by NAIC Designation, at fair value:

March 31, 2025

(in millions)

NAIC Designation 1 2 Total

Grade 3 4 5 6 Total Below

Other fixed maturity securities $ 29,425 $ 14,250 $ 43,675 $ 2,637 $ 1,545 $ 173 $ 15 $ 4,370 $ 48,045

Mortgage-backed, asset-backed and collateralized 17,928 532 18,460 103 77 32 4 216 18,676

Total* $ 47,353 $ 14,782 $ 62,135 $ 2,740 $ 1,622 $ 205 $ 19 $ 4,586 $ 66,721

* Excludes $60 million of fixed maturity securities for which no NAIC Designation is available.

The following table presents the fixed maturity security portfolio categorized by composite AIG credit rating, at fair value:

March 31, 2025

(in millions)

Composite AIG Credit Rating AAA/AA/A BBB Total

Grade BB B CCC and Lower Total Below

Other fixed maturity securities $ 30,134 $ 13,648 $ 43,782 $ 2,307 $ 1,769 $ 187 $ 4,263 $ 48,045

Mortgage-backed, asset-backed and collateralized 16,943 517 17,460 39 115 1,062 1,216 18,676

Total* $ 47,077 $ 14,165 $ 61,242 $ 2,346 $ 1,884 $ 1,249 $ 5,479 $ 66,721

* Excludes $60 million of fixed maturity securities for which no NAIC Designation is available.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Insurance Reserves

Insurance Reserves

1 unchanged sentence

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

September 30, 2024 December 31, 2023

(in millions) Net liability for

unpaid losses

expenses Reinsurance

recoverable on

unpaid losses and

loss adjustment

expenses Gross liability

losses and loss

adjustment expenses Net liability for

unpaid losses

expenses Reinsurance

recoverable on

unpaid losses and

loss adjustment

expenses Gross liability

losses and loss

adjustment expenses

March 31, 2025 December 31, 2024

(in millions) Net Loss Reserves Reinsurance

Recoverable Gross Loss Reserves Net Loss Reserves Reinsurance

Recoverable Gross Loss Reserves

General Insurance:

North America Commercial:

Workers' Compensation (net of discount) $ 2,369 $ 3,804 $ 6,173 $ 2,293 $ 3,916 $ 6,209

3 unchanged sentences

Property and Special Risks 4,279 875 5,154 4,297 1,233 5,530

Personal Insurance 838 2,098 2,936 767 2,163 2,930

Other product lines (b)

3,519 2,677 6,196 3,747 2,947 6,694

Total North America Commercial 23,273 15,003 38,276 23,354 16,265 39,619

International Commercial:

UK/Europe Casualty and Financial Lines 7,929 2,053 9,982 7,280 1,952 9,232

UK/Europe Property and Special Risks 2,823 1,793 4,616 2,355 1,761 4,116

Other product lines (b)

1,714 1,304 3,018 1,630 1,230 2,860

Total International Commercial 12,466 5,150 17,616 11,265 4,943 16,208

Global Personal:

Personal Insurance 897 2,005 2,902 836 2,048 2,884

UK/Europe and Japan Personal Insurance 1,326 687 2,013 1,269 670 1,939

1 unchanged sentence

986 750 1,736 983 776 1,759

Total Global Personal 3,209 3,442 6,651 3,088 3,494 6,582

Unallocated loss adjustment expenses (b)

1 unchanged sentence

Total General Insurance 40,472 24,251 64,723 39,511 25,446 64,957

Other Operations Run-Off:

run-off long tail insurance lines (net of discount) 277 3,229 3,506 283 3,360 3,643

Other run-off product lines 225 64 289 228 60 288

Blackboard U.S.

Holdings, Inc.

50 115 165 91 119 210

Unallocated loss adjustment expenses 11 114 125 15 114 129

Total Other Operations Run-Off 563 3,522 4,085 617 3,653 4,270

Other Operations 625 3,548 4,173 631 3,580 4,211

Total $ 41,097 $ 27,799 $ 68,896 $ 40,142 $ 29,026 $ 69,168

(a) Includes net loss reserve discount of $1.2 billion and $1.2 billion at September 30, 2024 and December 31, 2023, respectively.

(a) Includes net loss reserve discount of $1.2 billion and $1.2 billion at March 31, 2025 and December 31, 2024, respectively.

For information regarding loss reserve discount, see Note 12 to the Condensed Consolidated Financial Statements.

(b) Other product lines and Unallocated loss adjustment expenses includes 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 $2.7 billion and $2.9 billion at September 30, 2024 and December 31, 2023, respectively.

AIG | Third Quarter 2024 Form 10-Q

ITEM 2 | Insurance Reserves

(b) Other product lines and Unallocated loss adjustment expenses includes 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 $2.5 billion and $2.7 billion at March 31, 2025 and December 31, 2024, respectively.

Prior Year Development

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

Three Months Ended

September 30, Nine Months Ended

September 30,

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

Three Months Ended March 31,

(in millions) 2025 2024

General Insurance:

North America $ (63) $ (154) $ (165) $ (408)

International (90) 15 (101) 86

North America Commercial:

Workers' Compensation $ (10) $ (11)

Excess Casualty (7) (8)

Other Casualty (7) (8)

Financial Lines (5) (5)

Property and Special Risks (21) —

Other Product Lines — —

Total North America Commercial $ (50) $ (32)

International Commercial:

UK/Europe Casualty and Financial Lines $ — $ —

UK/Europe Property and Special Risks (13) —

Other Product Lines (1) (2)

Total International Commercial $ (14) $ (2)

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Insurance Reserves

Three Months Ended March 31,

(in millions) 2025 2024

Global Personal:

Personal Insurance $ — $ —

UK/Europe and Japan Personal Insurance (1) —

Other Product Lines 1 —

Total Global Personal $ — $ —

Total General Insurance* $ (64) $ (34)

Other Operations Run-Off — —

Total prior year favorable development $ (151) $ (142) $ (264) $ (325)

* Includes the amortization attributed to the deferred gain at inception from the National Indemnity Company (NICO) adverse development reinsurance agreement of $34 million and $41 million for the three months ended September 30, 2024 and 2023, respectively, and $102 million and $123 million for the nine months ended September 30, 2024 and 2023, respectively.

Consistent with our definition of APTI, the amount excludes the portion of (favorable)/unfavorable prior year reserve development for which we have ceded the risk under the NICO reinsurance agreements of $304 million and $(145) million for the three months ended September 30, 2024 and 2023, respectively, and $241 million and $(178) million for the nine months ended September 30, 2024 and 2023, respectively.

Also excludes the related changes in amortization of the deferred gain, which were $178 million and $(68) million for the three months ended September 30, 2024 and 2023, respectively, and $175 million and $(65) million for the nine months ended September 30, 2024 and 2023, respectively.

Total Prior Year (Favorable) Unfavorable Development $ (64) $ (34)

* Includes the amortization attributed to the deferred gain at inception from the National Indemnity Company (NICO) adverse development reinsurance agreement of $31 million and $34 million for the three months ended March 31, 2025 and 2024, respectively.

Consistent with our definition of APTI, the amount excludes the portion of (favorable)/unfavorable prior year reserve development for which we have ceded the risk under the NICO reinsurance agreements of $0 million and $0 million for the three months ended March 31, 2025 and 2024, respectively.

Also excludes the related changes in amortization of the deferred gain, which were $(9) million and $(2) million for the three months ended March 31, 2025 and 2024, respectively.

Net Loss Development

In the three months ended September 30, 2024, we recognized favorable prior year loss reserve development of $151 million.

In the three months ended March 31, 2025, we recognized favorable prior year loss reserve development of $64 million.

The key components of this development were:

North America

• Favorable development on U.S.

Property and Special Risks reflecting favorable loss experience in Retail and Wholesale Property.

• Favorable development on Financial Lines in U.S.

and Canada, reflecting favorable experience across most reserving classes, offset by unfavorable development in M&A and High Excess classes.

North America Commercial

• Favorable development in U.S.

• Amortization benefit related to the deferred gain on the adverse development cover.

• Adverse development on U.S.

Excess Casualty driven by a large settlement of a legacy mass tort claim with most of the gross loss in accident years covered under the Adverse Development Cover.

International

International Commercial

• Favorable development in Global Specialty.

In the three months ended March 31, 2024, we recognized favorable prior year loss reserve development of $34 million.

The key components of this development were:

North America Commercial

• Amortization benefit related to the deferred gain on the adverse development cover.

We note that 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

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 2025, see Part II, Item 7.

MD&A – Enterprise Risk Management – Insurance Risks – Natural Catastrophe Risk in the 2024 Annual Report.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Insurance Reserves

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.

(in millions) March 31, 2025 December 31, 2024

Gross Covered Losses

Covered reserves before discount $ 9,743 $ 9,823

Inception to date losses paid 31,625 31,545

Attachment point (25,000) (25,000)

Covered losses above attachment point $ 16,368 $ 16,368

Deferred Gain Development

Covered losses above attachment ceded to NICO (80%) $ 13,094 $ 13,094

Consideration paid including interest (10,188) (10,188)

Pre-tax deferred gain before discount and amortization 2,906 2,906

Discount on ceded losses (a)

Pre-tax deferred gain before amortization 1,971 1,970

Inception to date amortization of deferred gain at inception (1,595) (1,564)

Inception to date amortization attributed to changes in deferred gain (b)

Deferred gain liability reflected in AIG's balance sheet $ 268 $ 284

(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:

Three Months Ended March 31,

(in millions) 2025 2024

Balance at beginning of year, net of discount $ 284 $ 149

(Favorable) unfavorable prior year reserve development ceded to NICO (a)

Amortization attributed to deferred gain at inception (b)

Amortization attributed to changes in deferred gain (c)

Changes in discount on ceded loss reserves 1 55

Balance at end of period, net of discount $ 268 $ 177

(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.

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 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 March 31, 2025, $3.3 billion of reserves related to business written by multiple wholly-owned AIG subsidiaries, had been ceded to Fortitude Re under these reinsurance transactions.

Liquidity and Capital Resources

Liquidity refers to the ability to generate sufficient cash resources to meet the cash requirements of our business operations and payment obligations.

Capital refers to the long-term financial resources available to support the operation of our businesses, fund business growth and cover financial and operational needs that arise from adverse circumstances.

Our primary source of ongoing capital generation is derived from the profitability of our insurance subsidiaries.

We must comply with numerous constraints on our capital positions.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Liquidity and Capital Resources

constraints drive the requirements for capital adequacy at AIG and the individual businesses and are based on internally defined risk tolerances, regulatory requirements, rating agency and creditor expectations and business needs.

For information regarding our liquidity risk framework, see Part II, Item 7.

MD&A – Enterprise Risk Management – Risk Appetite, Limits, Identification and Measurement and Part II, Item 7.

MD&A – Enterprise Risk Management – Liquidity Risk Management in the 2024 Annual Report.

We believe that we have sufficient liquidity and capital resources to satisfy future requirements and meet our obligations to policyholders, customers, creditors and debt-holders, including those arising from reasonably foreseeable contingencies or events.

Nevertheless, some circumstances may cause our cash or capital needs to exceed projected liquidity or readily deployable capital resources.

For information regarding risks associated with our liquidity and capital resources, see Part I, Item 1A.

Risk Factors – Liquidity, Capital and Credit in the 2024 Annual Report.

Depending on market conditions, regulatory and rating agency considerations and other factors, we may take various liability and capital management actions.

Liability management actions may include, but are not limited to, repurchasing or redeeming outstanding debt, issuing new debt or engaging in debt exchange offers.

Capital management actions may include, but are not limited to, issuing preferred stock, paying dividends to our shareholders on AIG Common Stock, par value $2.50 per share (AIG Common Stock) and repurchases of AIG Common Stock.

LIQUIDITY AND CAPITAL RESOURCES HIGHLIGHTS

Liquidity to AIG Parent from Subsidiaries

During the three months ended March 31, 2025, our General Insurance companies distributed dividends of $0.4 billion to AIG Parent or applicable intermediate holding companies.

General Borrowings

During the three months ended March 31, 2025, $0.2 billion of debt categorized as general borrowings matured, was repaid or redeemed, including:

• Repayment of ¥37.7 billion aggregate principal amount of AIG Japan Holdings Kabushiki Kaisha's borrowings, equivalent to approximately $250 million at the time of repayment.

We made interest payments on our general borrowings totaling $70 million during the three months ended March 31, 2025.

During the three months ended March 31, 2025, w e made a cash dividend payment in the amount of $0.40 per share on AIG Common Stock totaling $234 million.

Repurchases of Common Stock (a)

During the three months ended March 31, 2025, AIG Parent repurchased approximately 29 million shares of AIG Common Stock, for an aggregate purchase price of approximately $2.2 billion.

(a) Pursuant to a Securities Exchange Act of 1934 (the Exchange Act) Rule 10b5-1 repurchase plan, from April 1, 2025 to April 25, 2025, AIG Parent repurchased approximately 5 million shares of AIG Common Stock for an aggregate purchase price of approximately $374 million.

ANALYSIS OF SOURCES AND USES OF CASH

Operating Cash Flow Activities

Insurance companies generally receive most premiums in advance of the payment of claims or policy benefits.

The ability of insurance companies to generate positive cash flow is affected by the frequency and severity of losses under their insurance policies, policy retention rates, effective management of their investment portfolio and operating expense discipline.

Interest payments totaled $72 million and $181 million in the three months ended March 31, 2025 and 2024, respectively.

Excluding interest payments, AIG had operating cash inflows of $16 million in the three months ended March 31, 2025 compared to operating cash inflows of $702 million, including $265 million inflow from discontinued operations, in the prior year period.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Liquidity and Capital Resources

Investing Cash Flow Activities

Net cash provided by investing activities in the three months ended March 31, 2025 was $2.8 billion, compared to net cash provided by investing activities of $306 million, including $2.7 billion used in discontinued operations, in the prior year period.

Financing Cash Flow Activities

Net cash used in financing activities in the three months ended March 31, 2025 totaled $2.7 billion , reflecting:

• $234 million to pay dividends of $0.40 per share on AIG Common Stock;

• $2.2 billion to repurchase approximately 29 million shares of AIG Common Stock;

• $247 million in net outflows from the issuance and repayment of long-term debt .

Net cash used in financing activities in the three months ended March 31, 2024 totaled $1.1 billion reflecting:

• $243 million to pay dividends of $0.36 per share on AIG Common Stock;

• $22 million to pay quarterly dividends of $365.625 per share on AIG’s Series A 5.85% Non-Cumulative Perpetual Preferred Stock and redemption premiums;

• $1.6 billion to repurchase approximately 23 million shares of AIG Common Stock;

• $459 million in net outflows from the issuance and repayment of long-term debt;

• $1.9 billion in net inflows from discontinued operations.

LIQUIDITY AND CAPITAL RESOURCES OF AIG PARENT AND SUBSIDIARIES

As of March 31, 2025 and December 31, 2024, respectively, AIG Parent had approximately $7.9 billion and $10.7 billion in liquidity sources held in the form of cash, short-term investments and AIG Parent's committed, revolving syndicated credit facility of $3.0 billion.

AIG Parent’s primary sources of liquidity are dividends, distributions, loans and other payments from subsidiaries and credit facilities.

AIG Parent’s primary uses of liquidity are for debt service, capital and liability management, operating expenses and dividends on AIG Common Stock.

We expect to access the debt and preferred equity markets from time to time to meet funding requirements as needed.

We utilize our capital resources to support our businesses, with the majority of capital allocated to our insurance operations.

Should we have or generate more capital than is needed to support our business strategies (including organic or inorganic growth opportunities) or mitigate risks inherent to our business, we may develop plans to distribute such capital to shareholders via dividends or AIG Common Stock repurchase authorizations or deploy such capital towards liability management.

Insurance Companies

We expect that our insurance companies will be able to continue to satisfy reasonably foreseeable future liquidity requirements and meet their obligations, including those arising from reasonably foreseeable contingencies or events, through cash from operations and, to the extent necessary, monetization of invested assets.

Our insurance companies’ liquidity resources are primarily held in the form of cash, short-term investments and publicly traded, investment grade rated fixed maturity securities.

Each of our material insurance companies’ liquidity is monitored through various internal liquidity risk measures.

The primary sources of liquidity are premiums, fees, reinsurance recoverables and investment income and maturities.

Certain of our insurance companies have access to Federal Home Loan Bank (FHLB) borrowings as an additional source of funding.

The primary uses of liquidity are paid losses, reinsurance payments, interest payments, dividends, expenses, investment purchases and collateral requirements.

Payments of dividends to AIG Parent or intermediate holding companies by insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities.

For information regarding restrictions on payments of dividends by our subsidiaries, see Note 18 to the Consolidated Financial Statements in the 2024 Annual Report.

Our insurance companies may require additional funding to meet capital or liquidity needs under certain circumstances.

For example, large catastrophes may require us to provide additional support to the affected operations of our insurance companies.

We are party to several letter of credit agreements with various financial institutions, which issue letters of credit from time to time in support of our insurance companies.

These letters of credit are subject to reimbursement by us in the event of a drawdown of these letters of credit.

Letters of credit issued in support of our insurance companies totaled approximately $2.3 billion at March 31, 2025.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Liquidity and Capital Resources

CREDIT FACILITIES

We maintain a syndicated, multicurrency revolving credit facility (the Facility) as a potential source of liquidity for general corporate purposes with aggregate commitments by the bank syndicate to provide AIG Parent with unsecured revolving loans and/or standby letters of credit of up to $3.0 billion.

The Facility is scheduled to expire in September 2029.

Our ability to utilize the Facility is conditioned on the satisfaction of certain legal, operating, administrative and financial covenants and other requirements contained in the Facility.

These include covenants relating to our maintenance of a specified total consolidated net worth and total consolidated debt to total consolidated capitalization.

Failure to satisfy these and other requirements contained in the Facility would restrict our access to the Facility and could have a material adverse effect on our financial condition, results of operations and liquidity.

As of March 31, 2025, a total of $3.0 billion remained available under the Facility.

CONTRACTUAL OBLIGATIONS

As of March 31, 2025, there have been no material changes in our contractual obligations from December 31, 2024, a description of which may be found in Part II, Item 7.

MD&A – Liquidity and Capital Resources – Contractual Obligations in the 2024 Annual Report.

OFF-BALANCE SHEET ARRANGEMENTS AND COMMERCIAL COMMITMENTS

As of March 31, 2025, there have been no material changes in our off-balance sheet arrangements and commercial commitments from December 31, 2024, a description of which may be found in Part II, Item 7.

MD&A – Liquidity and Capital Resources – Off-Balance Sheet Arrangements and Commercial Commitments in the 2024 Annual Report .

We expect to service and repay general borrowings through maturing investments and dispositions of invested assets, future cash flows from operations, cash flows generated from invested assets, future debt or preferred stock issuances and other financing arrangements.

The following table provides the rollforward of our total debt outstanding:

Three Months Ended March 31, 2025 Balance,

of Year Issuances Maturities

Repayments Effect of

Exchange Balance,

(in millions)

General borrowings:

Notes and bonds payable $ 7,885 $ — $ — $ 71 $ 7,956

Junior subordinated debt 602 — — — 602

AIG Japan Holdings Kabushiki Kaisha 239 — (247) 8 —

Total general borrowings 8,726 — (247) 79 8,558

Borrowings supported by assets 37 — — — 37

Other subsidiaries' notes, bonds, loans and mortgages payable - not guaranteed by AIG 1 — — — 1

Total long-term debt $ 8,764 $ — $ (247) $ 79 $ 8,596

Debt of consolidated investment entities - not guaranteed by AIG (a)

$ 158 $ — (1) — $ 157

(a) At March 31, 2025, includes debt of consolidated investment entities primarily related to real estate investments of $157 million.

At December 31, 2024, includes debt of consolidated investment entities related to real estate investments of $158 million.

The following table summarizes maturing long-term debt at March 31, 2025 of AIG for the next four quarters:

Quarter Third

Quarter Fourth

Quarter First

(in millions) 2025 2025 2025 2026 Total

General borrowings $ 146 $ — $ — $ — $ 146

Borrowings supported by assets — — 12 7 19

Other subsidiaries' notes, bonds, loans and mortgages payable — — 1 — 1

Total $ 146 $ — $ 13 $ 7 $ 166

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Liquidity and Capital Resources

The following table presents maturities of long-term debt (including unamortized original issue discount, hedge accounting valuation adjustments and fair value adjustments, when applicable):

March 31, 2025 Remainder Year Ending

(in millions) Total of 2025 2026 2027 2028 2029 2030 Thereafter

General borrowings:

Notes and bonds payable

$ 7,956 $ 146 $ 266 $ 885 $ 855 $ 260 $ 337 $ 5,207

Junior subordinated debt 602 — — — — — — 602

Total general borrowings 8,558 146 266 885 855 260 337 5,809

Borrowings supported by assets 37 12 7 — — — — 18

Other subsidiaries notes, bonds, loans and mortgages payable 1 1 — — — — — —

Total long-term debt*

$ 8,596 $ 159 $ 273 $ 885 $ 855 $ 260 $ 337 $ 5,827

* Does not reflect $157 million of notes issued by consolidated investment entities, for which recourse is limited to the assets of the respective investment entities and for which there is no recourse to the general credit of AIG.

CREDIT RATINGS

Credit ratings estimate a company’s ability to meet its obligations and may directly affect the cost and availability of financing to that company.

The following table presents the credit ratings of AIG Parent as of the date of this filing.

Figures in parentheses indicate the relative ranking of the ratings within the agency’s rating categories;

that ranking refers only to the major rating category and not to the modifiers assigned by the rating agencies.

Short-Term Debt Senior Long-Term Debt

Moody's S&P Moody's (a)

American International Group, Inc.

P-2 (2nd of 4) A-2 (2nd of 5) Baa 2 (4th of 9) / Positive

BBB+ (4th of 9) /

(a) Moody’s appends numerical modifiers 1, 2 and 3 to the generic rating categories to show relative position within the rating categories.

(b) S&P ratings may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.

(Fitch) ratings may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.

These credit ratings are current opinions of the rating agencies.

They may be changed, suspended or withdrawn at any time by the rating agencies as a result of changes in, or unavailability of, information or based on other circumstances.

Ratings may also be withdrawn at our request.

We are party to some agreements that contain “ratings triggers.” Depending on the ratings maintained by one or more rating agencies, these triggers could result in (i) the termination or limitation of credit availability or a requirement for accelerated repayment, (ii) the termination of business contracts or (iii) a requirement to post collateral for the benefit of counterparties.

In the event of a downgrade of our long-term senior debt ratings, certain AIG entities would be required to post additional collateral under some derivative and other transactions, or certain of the counterparties of such entities would be permitted to terminate such transactions early.

The actual amount of collateral that we would be required to post to counterparties in the event of such downgrades, or the aggregate amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions and other factors prevailing at the time of the downgrade.

FINANCIAL STRENGTH RATINGS

Financial Strength ratings estimate an insurance company’s ability to pay its obligations under an insurance policy.

The following table presents the ratings of our significant insurance subsidiaries as of the date of this filing.

Best S&P Fitch Moody’s

National Union Fire Insurance Company of Pittsburgh, Pa.

Lexington Insurance Company A A+ A+ A2

American Home Assurance Company A A+ A+ A2

AIG Europe S.A.

American International Group UK Ltd.

AIG General Insurance Co.

These financial strength ratings are current opinions of the rating agencies.

They may be changed, suspended or withdrawn at any time by the rating agencies as a result of changes in, or unavailability of, information or based on other circumstances.

AIG | First Quarter 2025 Form 10-Q

ITEM 2 | Liquidity and Capital Resources

For information regarding the effects of downgrades in our credit ratings and financial strength ratings, see Part I, Item 1A.

Risk Factors – Liquidity, Capital and Credit – “A downgrade by one or more of the rating agencies in the Insurer Financial Strength ratings of our insurance companies could limit their ability to write or prevent them from writing new business and impair their retention of customers and in-force business, and a downgrade in our credit ratings could adversely affect our business, results of operations, financial condition and liquidity” in the 2024 Annual Report and Note 11 to the Condensed Consolidated Financial Statements.

REGULATION AND SUPERVISION

For a discussion of our regulation and supervision by different regulatory authorities in the United States and abroad, including with respect to our liquidity and capital resources, see Part I, Item 1.

Business – Regulation and Part I, Item 1A.

Risk Factors – Regulation in the 2024 Annual Report and Executive Summary – Regulatory, Industry and Economic Factors – Regulatory Environment in this MD&A.

On May 1, 2025, our Board of Directors (the Board) declared a cash dividend on AIG Common Stock of $0.45 per share, a 12.5 percent increase from prior quarterly dividends on AIG Common Stock, payable on June 27, 2025 to shareholders of record on June 13, 2025.

The payment of any future dividends will be at the discretion of our Board of Directors and will depend on various factors.

For further detail on our dividends, see Note 14 to the Condensed Consolidated Financial Statements.

REPURCHASES OF AIG COMMON STOCK

The Board has authorized the repurchase of shares of AIG Common Stock through a series of actions.

Effective April 1, 2025, the Board of Directors authorized the repurchase of $7.5 billion of AIG Common Stock (inclusive of the approximately $3.4 billion remaining under the Board's prior share repurchase authorization).

During the three months ended March 31, 2025, AIG Parent repurchased approximately 29 million shares of AIG Common Stock for an aggregate purchase price of $2.2 billion.

Pursuant to an Exchange Act Rule 10b5-1 repurchase plan, from April 1, 2025 to April 25, 2025, AIG Parent repurchased approximately 5 million shares of AIG Common Stock for an aggregate purchase price of approximately $374 million.

As of April 25, 2025, $7.1 billion remained under the Board's authorization.

The timing of any future share repurchases will depend on market conditions, our business and strategic plans, financial condition, results of operations, liquidity and other factors, as discussed further in Note 14 to the Condensed Consolidated Financial Statements.

Enterprise Risk Management

Risk management is an integral part of our business strategy and a key element of our approach to corporate governance.

We have an integrated process for managing risks throughout our organization in accordance with our firm-wide risk appetite.

Our Board of Directors has oversight responsibility for the management of risk.

Our ERM Department oversees and integrates the risk management functions in our business entities and embeds risk management in our day-to-day business processes, providing senior management with a consolidated view of AIG’s major risk positions.

Nevertheless, our risk management efforts may not always be successful and material adverse effects on our business, results of operations, cash flows, liquidity or financial condition may occur.

For further information regarding the risks associated with our business and operations, see Part I, Item 1A.

Risk Factors in the 2024 Annual Report.

AIG employs a Three Lines model.

AIG’s business leaders assume full accountability for the risks and controls in their segments, and ERM performs a review, challenge and oversight function.

The third line consists of our Internal Audit Group that provides independent assurance to AIG’s Board of Directors.

For additional information on AIG’s risk management program, see Part II, Item 7.

MD&A ─ Enterprise Risk Management in the 2024 Annual Report.

The scope and magnitude of our market risk exposures is managed under a robust framework that contains defined risk limits and minimum standards for managing market risk in a manner consistent with our risk appetite statement.

As of March 31, 2025, there have been no material changes in our market risk exposures, which may be found in Part II, Item 7.

MD&A ─ Enterprise Risk Management in the 2024 Annual Report.

See Part I, Item 1A.

Risk Factors in the 2024 Annual Report on how difficult conditions in the financial markets and the economy generally may materially adversely affect our business and results of our operations.

AIG | First Quarter 2025 Form 10-Q

Accident year The annual calendar accounting period in which loss events occurred, regardless of when the losses are actually reported, booked or paid.

Accident year combined ratio, as adjusted (Accident year combined ratio, ex-CAT) The combined ratio excluding catastrophe losses and related reinstatement premiums, prior year development, net of premium adjustments, and the impact of reserve discounting.

Accident year loss ratio, as adjusted (Accident year loss ratio, ex-CAT) The loss ratio excluding catastrophe losses and related reinstatement premiums, prior year development, net of premium adjustments, and the impact of reserve discounting.

Acquisition ratio Acquisition costs divided by net premiums earned.

Acquisition costs are those costs incurred to acquire new and renewal insurance contracts and also include the amortization of VOBA and DAC.

Acquisition costs vary with sales and include, but are not limited to, commissions, premium taxes, direct marketing costs and certain costs of personnel engaged in sales support activities such as underwriting.

Attritional losses are losses recorded in the current accident year, which are not catastrophe losses.

We believe this measure is useful to investors because it eliminates the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions.

We also exclude the portion of DTA representing U.S.

tax attributes related to net operating loss carryforwards (NOLs), corporate alternative minimum tax credits (CAMTCs) and foreign tax credits (FTCs) that have not yet been utilized.

Amounts for interim periods are estimates based on projections of full-year attribute utilization.

As NOLs, CAMTCs and FTCs are utilized, the corresponding portion of the DTA utilized is included.

We exclude AIG’s ownership interest in Corebridge since it is not a core long-term investment for AIG.

Core operating book value per share is derived by dividing total AIG common shareholders’ equity, excluding Investments AOCI, DTA and AIG’s ownership interest in Corebridge (AIG core operating shareholders’ equity) by total common shares outstanding.

Adjusted book value per share is derived by dividing total AIG common shareholders’ equity, excluding Investments AOCI (AIG adjusted common shareholders' equity) by total common shares outstanding.

Casualty insurance Insurance that is primarily associated with the losses caused by injuries to third persons, i.e., not the insured, and the legal liability imposed on the insured as a result.

Combined ratio Sum of the loss ratio and the acquisition and general operating expense ratios.

Credit Support Annex A legal document generally associated with an ISDA Master Agreement that provides for collateral postings which could vary depending on ratings and threshold levels.

DAC Deferred Policy Acquisition Costs Deferred costs that are incremental and directly related to the successful acquisition of new business or renewal of existing business.

Deferred gain on retroactive reinsurance Retroactive reinsurance is a reinsurance contract in which an assuming entity agrees to reimburse a ceding entity for liabilities incurred as a result of past insurable events.

If the amount of premium paid by the ceding reinsurer is less than the related ceded loss reserves, the resulting gain is deferred and amortized over the settlement period of the reserves.

Any related development on the ceded loss reserves recoverable under the contract would increase the deferred gain if unfavorable, or decrease the deferred gain if favorable.

Expense ratio Sum of acquisition expenses and general operating expenses, divided by net premiums earned.

General operating expense ratio General operating expenses divided by net premiums earned.

General operating expenses are those costs that are generally attributed to the support infrastructure of the organization and include but are not limited to personnel costs, projects and bad debt expenses.

General operating expenses exclude losses and loss adjustment expenses incurred, acquisition expenses, and investment expenses.

IBNR Incurred But Not Reported Estimates of claims that have been incurred but not reported to us.

AIG | First Quarter 2025 Form 10-Q

ISDA Master Agreement An agreement between two counterparties, which may have multiple derivative transactions with each other governed by such agreement, that generally provides for the net settlement of all or a specified group of these derivative transactions, as well as pledged collateral, through a single payment, in a single currency, in the event of a default on, or affecting any, one derivative transaction or a termination event affecting all, or a specified group of, derivative transactions.

Loan-to-value ratio Principal amount of loan amount divided by appraised value of collateral securing the loan.

Loss Adjustment Expenses The expenses directly attributed to settling and paying claims of insureds and include, but are not limited to, legal fees, adjuster’s fees and the portion of general expenses allocated to claim settlement costs.

Loss ratio Losses and loss adjustment expenses incurred divided by net premiums earned.

Loss reserve development The increase or decrease in incurred losses and loss adjustment expenses related to prior years as a result of the re-estimation of loss reserves at successive valuation dates for a given group of claims.

Loss reserves Liability for unpaid losses and loss adjustment expenses.

The estimated ultimate cost of settling claims relating to insured events that have occurred on or before the balance sheet date, whether or not reported to the insurer at that date.

Master netting agreement An agreement between two counterparties who have multiple derivative contracts with each other that provides for the net settlement of all contracts covered by such agreement, as well as pledged collateral, through a single payment, in a single currency, in the event of default on or upon termination of any one such contract.

Natural catastrophe losses are generally weather or seismic events having a net impact on AIG in excess of $10 million each and man-made catastrophe losses, such as terrorism and civil disorders that exceed the $10 million threshold.

Net premiums written represent the sales of an insurer, adjusted for reinsurance premiums assumed and ceded, during a given period.

Net premiums earned are the revenue of an insurer for covering risk during a given period.

Net premiums written are a measure of performance for a sales period, while net premiums earned are a measure of performance for a coverage period.

Noncontrolling interests The portion of equity ownership in a consolidated subsidiary not attributable to the controlling parent company.

Pool A reinsurance arrangement whereby all of the underwriting results of the pool members are combined and then shared by each member in accordance with its pool participation percentage.

Prior year development See Loss reserve development .

RBC Risk-Based Capital A formula designed to measure the adequacy of an insurer’s statutory surplus compared to the risks inherent in its business.

Reinstatement premiums Premiums on an insurance policy over and above the initial premium imposed at the beginning of the policy payable to reinsurers or receivable from insurers to restore coverage limits that have been reduced or exhausted as a result of reinsured losses under certain excess of loss reinsurance contracts.

Reinsurance The practice whereby one insurer, the reinsurer, in consideration of a premium paid to that insurer, agrees to indemnify another insurer, the ceding company, for part or all of the liability of the ceding company under one or more policies or contracts of insurance which it has issued.

Reinsurance recoverables are comprised of paid losses recoverable, ceded loss reserves, ceded reserves for unearned premiums.

Retroactive reinsurance See Deferred gain on retroactive reinsurance .

Return on equity – Adjusted after-tax income excluding Investments AOCI (Adjusted return on equity) is used to show the rate of return on common shareholders’ equity excluding Investments AOCI.

We believe this measure is useful to investors because it eliminates the fair value of investments which can fluctuate significantly from period to period due to changes in market conditions.

We believe this measure is useful to investors because it eliminates the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions.

We also exclude the portion of DTA representing U.S.

tax attributes related to NOLs, CAMTCs and FTCs that have not yet been utilized.

Amounts for interim periods are estimates based on projections of full-year attribute utilization.

As NOLs, CAMTCs and FTCs are utilized, the corresponding portion of the DTA utilized is included.

We exclude AIG’s ownership interest in Corebridge since it is not a core long-term investment for AIG.

We believe this metric will provide investors with greater insight as to the underlying profitability of our property and casualty business.

AIG | First Quarter 2025 Form 10-Q

Subrogation The amount of recovery for claims we have paid our policyholders, generally from a negligent third party or such party’s insurer.

Unearned premium reserve Liabilities established by insurers and reinsurers to reflect unearned premiums, which are usually refundable to policyholders if an insurance or reinsurance contract is canceled prior to expiration of the contract term.

VOBA Value of Business Acquired Present value of future pre-tax profits from in-force policies of acquired businesses discounted at yields applicable at the time of purchase.

VOBA is reported in DAC in the Condensed Consolidated Balance Sheets.

A&H Accident and Health Insurance ISDA International Swaps and Derivatives Association, Inc.

ABS Asset-Backed Securities Moody's Moody's Investors' Service Inc.

APTI Adjusted pre-tax income NAIC National Association of Insurance Commissioners

CDS Credit Default Swap NM Not Meaningful

CLO Collateralized Loan Obligations ORR Obligor Risk Ratings

CMBS Commercial Mortgage-Backed Securities RMBS Residential Mortgage-Backed Securities

ERM Enterprise Risk Management S&P Standard & Poor's Financial Services LLC

FASB Financial Accounting Standards Board SEC Securities and Exchange Commission

GAAP Accounting Principles Generally Accepted in the United States of America VIE Variable Interest Entity

ITEM 3 | Quantitative and Qualitative Disclosures About Market Risk

The information required by this item is set forth in the Enterprise Risk Management section of Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations and is incorporated herein by reference.

ITEM 4 | Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act of 1934, as amended (the Exchange Act), is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

In connection with the preparation of this Quarterly Report on Form 10-Q, an evaluation was carried out by American International Group, Inc.

(AIG) management, with the participation of AIG’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of March 31, 2025.

Based on this evaluation, AIG’s Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2025.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f)) that have occurred during the quarter ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

AIG | First Quarter 2025 Form 10-Q

Part II – Other Information

ITEM 1 | Legal Proceedings

For a discussion of legal proceedings, see Note 13 to the Condensed Consolidated Financial Statements, which is incorporated herein by reference.

ITEM 1A | Risk Factors

In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors discussed in Part I, Item 1A.

Risk Factors in the 2024 Annual Report.

ITEM 2 | Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information about purchases made by or on behalf of AIG or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934 (the Exchange Act)) of AIG Common Stock during the three months ended March 31, 2025:

Period Total Number

Repurchased Average Price

Paid per Share* Total Number of Shares

Purchased as Part of

Publicly Announced

Plans or Programs Approximate Dollar Value

of Shares that May Yet Be

Purchased Under the Plans

or Programs (in millions)

January 1-31 10,787,478 $ 73.46 10,787,478 $ 4,846

February 1-28 10,752,132 76.40 10,752,132 4,025

March 1-31 7,456,047 82.78 7,456,047 3,408

Total 28,995,657 $ 76.95 28,995,657 $ 3,408

* Excludes excise tax of $20 million due to the Inflation Reduction Act of 2022 for the three months ended March 31, 2025.

During the three months ended March 31, 2025, American International Group, Inc.

repurchased approximately 29 million shares of AIG Common Stock, par value $2.50 per share (AIG Common Stock) for an aggregate purchase price of $2.2 billion.

From April 1, 2025 to April 25, 2025, we repurchased approximately 5 million shares of AIG Common Stock for an aggregate purchase price of approximately $374 million.

Effective April 1, 2025, the Board of Directors authorized the repurchase of $7.5 billion of AIG Common Stock (inclusive of the approximately $3.4 billion remaining under the Board's prior share repurchase authorization).

Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise.

Certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans.

The timing of any future share repurchases will depend on market conditions, our business and strategic plans, financial condition, results of operations, liquidity and other factors.

AIG | First Quarter 2025 Form 10-Q

ITEM 5 | Other Information

Our officers and directors (as defined in Rule 16a-1 under the Exchange Act) may, with our Board of Directors' approval, enter into plans for the purchase or sale of our Common Stock that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.

Other than as described below, during the three months ended March 31, 2025 , none of the Company’s directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

• Rose Marie Glazer , our Executive Vice President, General Counsel , entered into a new trading plan on February 14, 2025 .

The plan’s maximum duration is until December 31, 2025 , and the first trade may not occur prior to May 16, 2025.

The trading plan is intended to permit Ms.

Glazer to exercise up to 34,954 stock options and immediately sell the acquired shares.

The Rule 10b5-1 trading arrangement described above was adopted and precleared in accordance with AIG’s Insider Trading Policy and actual sale transactions made pursuant to such trading arrangements will be disclosed publicly in future Section 16 filings with the SEC.

ITEM 6 | Exhibits

Exhibit Index

22 Guaranteed Securities None.

31 Rule 13a-14(a)/15d-14(a) Certifications

Filed herewith.

32 Section 1350 Certifications*

Filed herewith.

101 Interactive data files pursuant to Rule 405 of Regulation S-T formatted in iXBRL (Inline eXtensible Business Reporting Language):

(i) the Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, (ii) the Condensed Consolidated Statements of Income (Loss) for the three months ended March 31, 2025 and 2024, (iii) the Condensed Consolidated Statements of Equity for the three months ended March 31, 2025 and 2024, (iv) the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024, (v) the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2025 and 2024 and (vi) the Notes to the Condensed Consolidated Financial Statements

Filed herewith.

104 Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101) Filed herewith.

* This information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.

AIG | First Quarter 2025 Form 10-Q

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

AMERICAN INTERNATIONAL GROUP, INC.

/S/ KEITH WALSH

Executive Vice President and

Chief Financial Officer

(Principal Financial Officer)

/S/ KATHLEEN CARBONE

Kathleen Carbone

Vice President and

Chief Accounting Officer

(Principal Accounting Officer)

AIG | First Quarter 2025 Form 10-Q

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 5. Other Information