AMERICAN INTERNATIONAL GROUP, INC. (AIG)

CIK: 0000005272. SIC: 6331 Fire, Marine & Casualty Insurance. Latest 10-K as of: 2026-02-12.
SIC breadcrumb: Finance, Insurance, And Real Estate > Insurance Carriers > SIC 6331 Fire, Marine & Casualty Insurance
SEC company page: https://www.sec.gov/edgar/browse/?CIK=5272. Latest filing source: 0000005272-26-000023.
Selected Fundamentals

Metric	Value	Unit	FY	Filed
Revenue	26,775,000,000	USD	2025	2026-02-12
Net income	3,096,000,000	USD	2025	2026-02-12
Assets	161,254,000,000	USD	2025	2026-02-12
Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000005272.json. Derived margins are computed from the extracted annual SEC facts.
Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.
Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Revenue	52,367,000,000	49,520,000,000	47,389,000,000	49,746,000,000	43,736,000,000	52,157,000,000	29,996,000,000	27,938,000,000	27,251,000,000	26,775,000,000
Net income	-849,000,000	-6,084,000,000	-6,000,000	3,348,000,000	-5,944,000,000	10,367,000,000	10,227,000,000	3,643,000,000	-1,404,000,000	3,096,000,000
Diluted EPS	-0.78	-6.54	-0.01	3.74	-6.88	11.95	12.94	4.98	-2.17	5.43
Assets	498,264,000,000	498,301,000,000	491,984,000,000	525,064,000,000	586,481,000,000	598,841,000,000	522,228,000,000	539,306,000,000	161,322,000,000	161,254,000,000
Liabilities	421,406,000,000	432,593,000,000	434,675,000,000	457,637,000,000	519,282,000,000	532,906,000,000	478,774,000,000	488,005,000,000	118,772,000,000	120,092,000,000
Stockholders' equity	76,300,000,000	65,171,000,000	56,361,000,000	65,675,000,000	66,362,000,000	65,098,000,000	40,970,000,000	45,351,000,000	42,521,000,000	41,139,000,000
Net margin	-1.62%	-12.29%	-0.01%	6.73%	-13.59%	19.88%	34.09%	13.04%	-5.15%	11.56%
Financial Charts

Macro Cross-References

CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
UNRATE - Unemployment Rate
FEDFUNDS - Federal Funds Effective Rate
CES0500000003 - Average Hourly Earnings of All Employees, Total Private
DFEDTARU - Federal Funds Target Range - Upper Limit
DFEDTARL - Federal Funds Target Range - Lower Limit
DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
PCEPI - Personal Consumption Expenditures: Chain-type Price Index
PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
PPIACO - Producer Price Index by Commodity: All Commodities
T10YIE - 10-Year Breakeven Inflation Rate
U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
PAYEMS - All Employees, Total Nonfarm
CIVPART - Labor Force Participation Rate
EMRATIO - Employment-Population Ratio
UNEMPLOY - Unemployed
CE16OV - Employment Level
ICSA - Initial Claims
JTSJOL - Job Openings: Total Nonfarm
JTSQUR - Quits: Total Nonfarm
GDPC1 - Real Gross Domestic Product
A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
INDPRO - Industrial Production: Total Index
TCU - Capacity Utilization: Total Index
HOUST - New Privately-Owned Housing Units Started: Total Units
PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
RSAFS - Advance Retail Sales: Retail Trade
PCE - Personal Consumption Expenditures
DSPIC96 - Real Disposable Personal Income
PSAVERT - Personal Saving Rate
M2SL - M2
BOPGSTB - U.S. International Trade in Goods and Services: Balance
Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-12. Report date: 2025-12-31.
ITEM 7 | Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Note on Forward-Looking Statements

This Annual Report on Form 10-K and other publicly available documents may include, and members of management may from time to time make and discuss, statements which, to the extent they are not statements of historical or present fact, may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward‑looking statements are intended to provide management’s current expectations or plans for future operating and financial performance, based on assumptions currently believed to be valid and accurate. Forward-looking statements are often preceded by, followed by or include words such as “will,” “believe,” “anticipate,” “expect,” “expectations,” “intend,” “plan,” “strategy,” “prospects,” “project,” “anticipate,” “should,” “guidance,” “outlook,” “view,” “target,” “goal,” “estimate” and other words of similar meaning in connection with a discussion of future operating or financial performance. 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.

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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. Factors that could cause actual results to differ, possibly materially, from those in specific projections, targets, goals, plans, assumptions and other forward-looking statements include, without limitation:

•the impact of adverse developments affecting economic conditions in the markets in which we operate, including financial market conditions, a U.S. federal government shutdown, 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, pandemics, 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 technological advancements, including the use of artificial intelligence (AI), and respond to competitors' AI and other technology initiatives;

•our ability to successfully complete strategic transactions, including 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;

•changes in the valuation of our investments;

•our reliance on third-party investment managers;

•nonperformance or defaults by counterparties;

•our reliance on third parties to provide certain business and administrative services;

•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;

•availability of adequate reinsurance or access to reinsurance on acceptable terms;

•changes to tax laws in the 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;

•actions by rating agencies with respect to our credit and financial strength ratings as well as those of its businesses and subsidiaries;

•changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill;

•our ability to address evolving global stakeholder expectations and regulatory requirements including with respect to environmental, social and governance matters and to effectively execute on sustainability targets and standards;

•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 outcome of significant legal, regulatory or governmental proceedings; and

•such other factors discussed in:

–Part I, Item 1A. Risk Factors of this Annual Report;

–this Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) of this Annual Report; and

–our other filings with the Securities and Exchange Commission (SEC).

Forward-looking statements speak only as of the date of this report, or in the case of any document incorporated by reference, the date of that document. We are not under any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. 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.

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TABLE OF CONTENTS

INDEX TO ITEM 7

Page

Executive Summary

37

Overview

37

Critical Accounting Estimates

38

Consolidated Results of Operations

43

Business Segment Operations

44

General Insurance

44

Other Operations

49

Use of Non-GAAP Measures

49

Investments

54

Overview

54

Investment Highlights in 2025

54

Investment Strategies

54

Credit Ratings

59

Insurance Reserves

60

Loss Reserves

60

Liquidity and Capital Resources

63

Overview

63

Liquidity and Capital Resources Highlights

64

Analysis of Sources and Uses of Cash

64

Liquidity and Capital Resources of AIG Parent and Subsidiaries

65

Credit Facilities

66

Contractual Obligations

66

Off-Balance Sheet Arrangements and Commercial Commitments

66

Debt

67

Financial Strength Ratings

68

Credit Ratings

68

Regulation and Supervision

69

Dividends

69

Repurchases of AIG Common Stock

69

Enterprise Risk Management

69

Credit Risk

70

Market Risk

70

Liquidity Risk

72

Operational Risk

72

Technology Risk

72

Business and Strategic Risk

73

Insurance Risk

73

Glossary

76

Acronyms

78

Throughout the MD&A, we use certain terms and abbreviations, which are summarized in the Glossary and Acronyms.

We have incorporated into this discussion a number of cross-references to additional information included throughout this Annual Report to assist readers seeking additional information related to a particular subject.

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ITEM 7 | Executive Summary

Executive Summary

OVERVIEW

This overview of the MD&A highlights selected information and may not contain all of the information that is important to current or potential investors in our securities. You should read this Annual Report in its entirety for a more detailed description of events, trends, uncertainties, risks and critical accounting estimates affecting us.

FINANCIAL HIGHLIGHTS

Results of Operations

•Generated Net income attributable to AIG common shareholders per diluted share of $5.43 and Adjusted after-tax income attributable to AIG common shareholders per diluted share of $7.09, an increase of 43 percent from the prior year.

•Delivered $2.3 billion of underwriting income, a 22 percent increase from the prior year.

•Produced strong combined ratio of 90.1.

•Achieved Return on equity of 7.5 percent and Core operating return on equity of 11.1 percent.

Financial Condition

•Returned approximately $6.8 billion of capital to shareholders in 2025 through approximately $5.8 billion of stock repurchases, reducing outstanding shares by 11 percent, and approximately $1.0 billion in AIG Common Stock dividends.

•Received upgrades to financial strength ratings of AIG’s significant insurance subsidiaries by Fitch, S&P and Moody's and affirmation by A.M. Best.

Strategic Transactions

•Acquired the renewal rights of Everest Group, Ltd. (Everest) global retail commercial insurance portfolios for an aggregate purchase price of $301 million. For additional information, see Note 1 to the Consolidated Financial Statements.

•Announced strategic investments in Convex Group Limited (Convex), a privately held global specialty insurer for approximately $2.1 billion as well as a 9.9 percent ownership stake in Onex Corporation (Onex), a global asset manager, for approximately $646 million. For additional information, see Note 1 to the Consolidated Financial Statements.

•Announced strategic partnership with CVC Capital Partners plc (CVC) to establish large-scale separately managed accounts (SMAs) across CVC’s credit strategies and the launch of CVC’s private equity secondaries evergreen platform with AIG as a cornerstone investor, contributing up to $1.5 billion from AIG’s existing private equity portfolio. In parallel, AIG intends to allocate up to $2 billion to SMAs and funds managed by CVC, with an initial $1 billion to be deployed through 2026.

•Announced a strategic collaboration with Amwins Group, Inc. and Blackstone Inc. to form Lloyd’s Syndicate 2479, providing capacity for portfolio solutions.

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ITEM 7 | Critical Accounting Estimates

Critical Accounting Estimates

The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment.

The accounting policies that we believe are most dependent on the application of estimates and assumptions, which are critical accounting estimates, are related to the determination of:

•loss reserves;

•reinsurance assets;

•fair value measurements of certain financial assets and financial liabilities; and

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

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.

LOSS RESERVES

Loss reserves represent the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and loss adjustment expenses, less applicable discount. We regularly review and update the methods used to determine loss reserve estimates. Because these estimates are subject to the outcome of future events and because loss trends vary and time is often required for changes in trends to be recognized and confirmed, changes in estimates are common.

The estimate of loss reserves relies on several key judgments:

•the determination of the actuarial methods used as the basis for these estimates;

•the relative weights given to these models by product line;

•the underlying assumptions used in these models; and

•the determination of the appropriate groupings of similar product lines and, in some cases, the disaggregation of dissimilar losses within a product line.

Numerous assumptions are made in determining the best estimate of reserves for each line of business, in consideration of expected ultimate losses, loss cost trends and loss development factors, where appropriate. The importance of any one assumption can vary by both line of business and accident year. Because such assumptions may differ from actual experience, there could be significant variation in the development of loss reserves. This estimation uncertainty is particularly relevant for long-tail lines of business.

All of our methods to calculate net reserves include assumptions about estimated reinsurance recoveries and their collectability. Reinsurance collectability is evaluated independently of the reserving process and appropriate allowances for uncollectible reinsurance are established.

Overview of Loss Reserving Process and Methods

Our loss reserves can generally be categorized into two distinct groups: short-tail reserves and long-tail reserves. Short-tail reserves consist principally of U.S. Property and Special Risks, UK/Europe Property and Special Risks, U.S. Personal Insurance, and UK/Europe and Japan Personal Insurance. Long-tail reserves include U.S. Workers’ Compensation, U.S. Excess Casualty, U.S. Other Casualty, U.S. Financial Lines, and UK/Europe Casualty and Financial Lines.

Short-Tail Reserves

In short-tail lines of business, where the nature of these claims tends to be higher frequency with short reporting periods, with volatility arising from occasional severe events, the actual losses reported make up a greater proportion of the ultimate loss estimate. During the first few development quarters of an accident year, the expected ultimate losses generally reflect the average loss costs from a period of preceding accident quarters that have been adjusted for changes in rate and loss cost trends, mix of business, known exposure to unreported losses, or other factors affecting the particular line of business. For more mature quarters, specific loss development methods and/or frequency/severity methods may be used to determine the incurred but not reported (IBNR). IBNR for claims arising from catastrophic events or events of unusual severity would be determined taking into account information known by

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ITEM 7 | Critical Accounting Estimates

the claims department, using alternative techniques or expected percentages of ultimate loss emergence based on historical emergence of similar events or claim types.

Long-Tail Reserves

Estimation of loss reserves for our long-tail business depends on a number of factors, including the product line and volume of business, as well as estimates of reinsurance recoveries. Experience in more recent accident years generally provides limited statistical credibility of reported net losses. IBNR reserves constitute a relatively higher proportion of the ultimate net loss incurred in more recent accident years because of the lower level of reported net losses earlier in the development period.

For our long-tail lines, we generally make actuarial and other assumptions with respect to the following:

•Loss cost trend factors, which are used to establish expected loss ratios for subsequent accident years based on the projected loss ratios for prior accident years.

•Expected loss ratios, which are used for the latest accident year and, in some cases, for accident years prior to the latest accident year. The expected loss ratio also generally reflects the average loss ratio from prior accident years, adjusted for the loss cost trend and the effect of rate changes and other quantifiable factors on the loss ratio.

•Loss development factors, which are used to project the reported losses for each accident year to an ultimate basis. Generally, the actual loss development factors observed from prior accident years would be used as a basis to determine the loss development factors for the subsequent accident years.

•Tail factors, which are development factors used for certain long-tail lines of business to project future loss development for periods that extend beyond the available development data.

Differences between actual loss emergence in a given period and our expectations based on prior loss reserve estimates are used to monitor reserve adequacy between reserve reviews and may also influence our judgment with respect to adjusting reserve estimates.

Details of the Loss Reserving Process

The process of determining the current loss ratio for each product line of business is based on a variety of factors. These include considerations such as: prior accident year and policy year loss ratios; rate changes; and changes in coverage, reinsurance, or mix of business. Other considerations include actual and anticipated changes in external factors such as trends in loss costs, inflation, employment rates or unemployment duration or in the legal and claims environment. The current loss ratio for each product line of business is intended to represent our best estimate after reflecting all relevant factors. At the close of each quarter, the assumptions and data underlying the loss ratios are reviewed to determine whether they remain appropriate. This process includes a review of the actual loss experience in the quarter, actual rate changes achieved, actual changes in reinsurance, quantifiable changes in coverage or mix of business, and changes in other factors that may affect the loss ratio.

We conduct a comprehensive reserve review at least annually for each product line of business in accordance with Actuarial Standards of Practice. Our actuarial central estimate for each product line of business represents an expected value generally considering a range of reasonably possible outcomes.

The reserve analysis, globally, for each product line of business is performed by a credentialed actuarial team in collaboration with claims, underwriting, business unit management, risk management and senior management. Our actuaries aggregate the data into reserve segments, balancing considerations of homogeneity and credibility. They update numerous assumptions, including the analysis and selection of loss development and loss trend factors. They also determine and select the appropriate actuarial or other methods used to develop our best estimate for each business product line, and may employ multiple methods and assumptions for each product line. These data groupings, accident year weights, method selections and assumptions necessarily change over time as business mix changes, development factors mature and become more credible and loss characteristics evolve. We seek input from third-party specialists to help inform our judgments as needed.

A critical component of our reserve reviews is an internal peer review of our reserving analyses and conclusions, where actuaries independent of the initial review evaluate the reasonableness of assumptions used, methods selected, and weightings given to different methods. In addition, each detailed valuation review is subjected to a review and challenge process by specialists in our Enterprise Risk Management (ERM) group.

For certain product lines, we measure sensitivities and determine explicit ranges around the actuarial best estimate using multiple methodologies and varying assumptions. Where we have ranges, we use them to inform our selection of best estimates of loss reserves by product line of business. Our range of reasonable estimates is not intended to cover all possibilities or extreme values and is based on known data and facts at the time of estimation.

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ITEM 7 | Critical Accounting Estimates

Actuarial and Other Methods for Our Lines of Business

Our actuaries determine the appropriate actuarial methods and segmentation. This determination is based on a variety of factors including the nature of the losses associated with the product line of business, such as the frequency or severity of the claims. In addition to determining the actuarial methods, the actuaries determine the appropriate loss reserve groupings of data. The groupings may change to reflect observed or emerging patterns within and across product lines, or to differentiate risk characteristics (for example, size of deductibles and extent of third-party claims specialists used by our insureds). This determination of data segmentation and related actuarial methods is assessed, reviewed and updated at least annually.

The actuarial methods we use most commonly include paid and incurred loss development methods, expected loss ratio methods, including “Bornhuetter Ferguson” and “Cape Cod,” and frequency/severity models. Loss development methods utilize the actual loss development patterns from prior accident years updated through the current year to project the reported losses to an ultimate basis for all accident years. We also use this information to update our current accident year loss selections. Loss development methods are generally most appropriate for lines of business that exhibit a stable pattern of loss development from one accident year to the next, and for which the components of the product line have similar development characteristics. Expected loss ratio methods rely on the application of an expected loss ratio to the earned premium for the product line of business to determine the liability for loss reserves and loss adjustment expenses. We generally use expected loss ratio methods in cases where the reported loss data lacked sufficient credibility to utilize loss development methods, such as for new product lines of business or for long-tail product lines at early stages of loss development. Frequency/severity models may be used where sufficient frequency counts are available to apply such approaches.

The estimation of liability for loss reserves and loss adjustment expenses relating to asbestos and environmental pollution losses on insurance policies written many years ago is typically subject to greater uncertainty than other types of losses. This is due to inconsistent court decisions, as well as judicial interpretations and legislative actions that in some cases have tended to broaden coverage beyond the original intent of such policies or have expanded theories of liability. In addition, reinsurance recoverable balances relating to asbestos and environmental loss reserves are subject to greater uncertainty due to the underlying age of the claim, underlying legal issues surrounding the nature of the coverage, and determination of proper policy period. For these reasons, these balances tend to be subject to increased levels of disputes and legal collection activity when actually billed.

Key Assumptions of our Actuarial Methods by Line of Business

Line of Business or Category

Key Assumptions

U.S. Workers’

Compensation

We generally use a combination of loss development and expected loss ratio methods for U.S. Workers’ Compensation as this is a long-tail line of business.

The tail factor is typically the most critical assumption, and small changes in the selected tail factor can have a material effect on our carried reserves. For example, the tail factors beyond twenty years for guaranteed cost business could vary by 1 percentage point below to 2.5 percentage points above those indicated in our reserve estimates. For excess of deductible business, in our judgment, it is reasonably possible that tail factors beyond twenty years could vary by 1.5 percentage points below to 3 percentage points above those indicated in our reserve estimates.

U.S. Excess Casualty

The loss cost trend assumption is critical for U.S. Excess Casualty due to the long-tail nature of the losses. We utilize various loss cost trend assumptions for different segments of the portfolio. In our judgment, after evaluating historical loss cost trends, it is reasonably possible that actual loss cost may range 5 percentage points lower or higher than the estimated loss trend utilized in our reserve estimates. These changes in loss trends could be attributable to changes in inflation or in the judicial environment, or in other social or economic conditions affecting losses.

Loss development factors are also a key assumption for U.S. Excess Casualty. Due to the long-tail nature of the business, any deviation in loss development factors might not be discernible for an extended period of time subsequent to the recording of the initial loss reserve estimates for any accident year.

In our judgment, it is reasonably possible that the actual loss development factors could vary by an amount equivalent to a six month shift from those actually utilized in our reserve estimates. Similar to loss cost trends, these changes in loss development factors could be attributable to changes in inflation or in the judicial environment, or in other social or economic conditions affecting losses.

Given the very long-tail nature of this business, the tail factor selection can also have material impact on our carried reserves. The sensitivity around tail selection may also be a proxy for the sensitivity of a calendar year impact of monetary inflation on unpaid losses. It is reasonably possible for the tail factors for Excess Casualty could vary by 2 percentage points below to 3.5 percentage points above those indicated in our reserve estimates.

U.S. Other Casualty

The key assumptions for other casualty lines are similar to U.S. Excess Casualty, as the underlying business is long-tailed and can be subject to variability in loss cost trends and changes in loss development factors. These may differ significantly by line of business as coverages such as general liability, medical malpractice and environmental may be subject to different risk drivers.

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ITEM 7 | Critical Accounting Estimates

Line of Business or Category

Key Assumptions

U.S. Financial Lines

The loss cost trends for U.S. D&O liability business vary by year and subset. In our judgment, after evaluating the historical loss cost levels from prior accident years, it is reasonably possible that the actual variation in loss cost levels for these subsets could vary by approximately 10 percentage points lower or higher on a year-over-year basis than the assumptions actually utilized in our reserve estimates.

The selected loss development factors are also an important assumption. Because these lines are written on a claims made basis, the loss reporting and development tail is much shorter than for other lines, however, the high severity nature of the losses does create the potential for significant deviations in loss development patterns from one year to the next. After evaluating the historical loss development factors, in our judgment, it is reasonably possible that actual loss development factors could change by an amount equivalent to a shift by six months from those actually utilized in our reserve estimates.

UK/Europe Casualty and

Financial Lines

Similar to U.S. business, UK/Europe Casualty and Financial Lines can be significantly impacted by loss cost trends and changes in loss development factors. The variation in such factors can differ significantly by product and region, however the range of potential impacts is much lower than that of other lines of business noted above.

U.S. and UK/Europe

Property and Special

Risks

For shorter-tail lines such as Property and Special Risks, variance in outcomes for individual large claims or events typically has a greater impact on results than does changes in actuarial assumptions or methodology. This is because a greater proportion of the ultimate loss, at any stage of development, is composed of reported losses than IBNR reserves. These outcomes generally relate to unique characteristics of events such as catastrophes or losses with significant business interruption claims.

U.S., UK/Europe and

Japan Personal Insurance

Personal Insurance is short-tailed in nature similar to Property and Special Risks but less volatile. Variance in estimates can result from unique events such as catastrophes. In addition, some subsets of this business, such as auto liability, can be impacted by changes in loss development factors and loss cost trends.

The following sensitivity analysis table summarizes the effect on the loss reserve position of using certain alternative loss cost trend (for accident years where we use expected loss ratio methods) or loss development factor assumptions rather than the assumptions actually used in determining our estimates in the year-end loss reserve analyses in 2025:

December 31, 2025

Increase

(Decrease) to

Loss Reserves

Increase

(Decrease) to

Loss Reserves

(in millions)

Loss cost trends:

Loss development factors:

U.S. Excess Casualty:

U.S. Excess Casualty:

5.0 percentage points increase

$

900 

3.5 percentage points tail factor increase

$

1,150 

5.0 percentage points decrease

(650)

2.0 percentage points tail factor decrease

(700)

U.S. Excess Casualty:

6-months slower

750

6-months faster

(700)

U.S. Financial Lines (D&O)

U.S. Financial Lines (D&O)

10.0 percentage points increase

750 

6-months slower

600

10.0 percentage points decrease

(550)

6-months faster

(500)

U.S. Workers' Compensation:

Tail factor increase(a)

900 

Tail factor decrease(b)

(600)

(a)Tail factor increase of 2.5 percentage points for guaranteed cost business and 3 percentage points for deductible business.

(b)Tail factor decrease of 1 percentage point for guaranteed cost business and 1.5 percentage points for deductible business.

For additional information on our reserving process and methodology, see Note 13 to the Consolidated Financial Statements.

REINSURANCE ASSETS

In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss adjustment expenses incurred and ceded unearned premiums. The estimation of reinsurance recoverables involves a significant amount of judgment. Reinsurance assets include reinsurance recoverables on unpaid losses and loss adjustment expenses that are estimated as part of our loss reserving process and, consequently, are subject to similar judgments and uncertainties as the estimation of gross loss reserves. For additional information on reinsurance, see Note 8 to the Consolidated Financial Statements.

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ITEM 7 | Critical Accounting Estimates

FAIR VALUE MEASUREMENTS OF CERTAIN FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Assets and liabilities recorded at fair value in the Consolidated Balance Sheets are measured and classified in a hierarchy for disclosure purposes consisting of three levels based on the observability of inputs available in the marketplace used to measure the fair value. We classify fair value measurements for certain assets and liabilities as Level 3 when they require significant unobservable inputs in their valuation. We consider unobservable inputs to be those for which market data is not available. Our assessment of the significance of a particular input to the fair value measurement of an asset or liability requires judgment.

For additional information about the valuation methodologies of financial instruments measured at fair value, see Note 5 to the Consolidated Financial Statements.

INCOME TAXES

Deferred income taxes represent the tax effect of the differences between the amounts recorded in our Consolidated Financial Statements and the tax basis of assets and liabilities. Our assessment of net deferred income taxes represents management’s best estimate of the tax consequences of various events and transactions, which can themselves be based on other accounting estimates, resulting in incremental uncertainty in the estimation process.

Deferred Tax Asset Recoverability

The evaluation of the recoverability of our deferred tax asset and the need for a valuation allowance requires us to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. As such, changes in tax laws in countries where we transact business can impact our deferred tax asset valuation allowance. We consider multiple factors to reliably estimate future taxable income so we can determine the extent of our ability to realize net operating losses, foreign tax credits, realized capital loss and other carryforwards. These factors include forecasts of future income for each of our businesses, which incorporate forecasts of future statutory income for our insurance companies, and actual and planned business and operational changes, both of which include assumptions about future macroeconomic and AIG-specific conditions and events. We subject the forecasts to stresses of key assumptions and evaluate the effect on tax attribute utilization. We also apply stresses to our assumptions about the effectiveness of relevant prudent and feasible tax planning strategies. In performing our assessment of recoverability, we consider tax laws governing the utilization of net operating loss, capital loss and foreign tax credit carryforwards in each applicable jurisdiction. These tax laws are subject to change, resulting in incremental uncertainty in our assessment of recoverability.

Uncertain Tax Positions

Uncertain tax positions represent AIG’s liability for income taxes on tax years subject to review by the Internal Revenue Service (IRS) or other tax authorities. We determine whether it is more likely than not that a tax position will be sustained, based on technical merits, upon examination by the relevant taxing authorities before any part of the benefit can be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. The completion of review, or the expiration of federal statute of limitations for a given audit period could result in an adjustment to the liability for income taxes.

For a discussion of our framework for assessing the recoverability of our deferred tax asset and other tax topics, see Note 21 to the Consolidated Financial Statements.

42

AIG | 2025 Form 10-K

TABLE OF CONTENTS

ITEM 7 | 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-year period ended December 31, 2025. 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. For information regarding AIG’s results of operations for the year ended December 31, 2024 compared with the year ended December 31, 2023, see Part II, Item 7. MD&A – Consolidated Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2024 (the 2024 Annual Report).

The following table presents our consolidated results of operations and other key financial metrics:

Years Ended December 31,

Percentage Change

(in millions)

2025

2024

2023

2025 vs 2024

2024 vs 2023

Revenues:

Premiums

$

23,751 

$

23,537 

$

25,564 

1 

%

(8)

%

Net investment income:

Net investment income - excluding Fortitude Re funds withheld assets

4,066 

4,111 

3,266 

(1)

26 

Net investment income - Fortitude Re funds withheld assets

149 

144 

180 

3 

(20)

Total net investment income

4,215 

4,255 

3,446 

(1)

23 

Net realized losses:

Net realized losses - excluding Fortitude Re funds withheld assets and embedded derivative

(966)

(434)

(734)

(123)

41 

Net realized losses on Fortitude Re funds withheld assets

(70)

(39)

(71)

(79)

45 

Net realized losses on Fortitude Re funds withheld embedded derivative

(166)

(75)

(273)

(121)

73 

Total net realized losses

(1,202)

(548)

(1,078)

(119)

49 

Other income

11 

7 

6 

57 

17 

Total revenues

26,775 

27,251 

27,938 

(2)

(2)

Benefits, losses and expenses:

Losses and loss adjustment expenses incurred

14,162 

14,567 

15,393 

(3)

(5)

Amortization of deferred policy acquisition costs

3,371 

3,425 

3,771 

(2)

(9)

General operating and other expenses

5,053 

5,529 

5,399 

(9)

2 

Interest expense

396 

462 

516 

(14)

(10)

(Gain) loss on extinguishment of debt

(5)

14 

(37)

NM

NM

Net (gain) loss on divestitures and other

(81)

(616)

29 

87 

NM

Total benefits, losses and expenses

22,896 

23,381 

25,071 

(2)

(7)

Income from continuing operations before income tax expense

3,879 

3,870 

2,867 

— 

35 

Income tax expense (benefit):

Current

905 

657 

176 

38 

273 

Deferred

(123)

513 

(50)

NM

NM

Income tax expense

782 

1,170 

126 

(33)

NM

Income from continuing operations

3,097 

2,700 

2,741 

15 

(1)

Income (loss) from discontinued operations, net of income taxes

— 

(3,626)

1,137 

NM

NM

Net income (loss)

3,097 

(926)

3,878 

NM

NM

Less: Net income attributable to noncontrolling interests

1 

478 

235 

(100)

103 

Net income (loss) attributable to AIG

3,096 

(1,404)

3,643 

NM

NM

Less: Dividends on preferred stock and preferred stock redemption premiums

— 

22 

29 

NM

(24)

Net income (loss) attributable to AIG common shareholders

$

3,096 

$

(1,426)

$

3,614 

NM

%

NM

%

AIG | 2025 Form 10-K

43

TABLE OF CONTENTS

ITEM 7 | Consolidated Results of Operations

NET INCOME (LOSS) ATTRIBUTABLE TO AIG COMMON SHAREHOLDERS

Years Ended December 31, 2025 and 2024 Comparison

Net income (loss) attributable to AIG common shareholders increased $4.5 billion primarily driven by:

•higher underwriting income primarily driven by lower catastrophe losses of $258 million and higher net favorable prior year reserve development of $183 million. For additional information, see Business Segment Operations – General Insurance;

•lower Net investment income of $40 million primarily due to lower gains on the changes in the fair value, lower gains on sale of shares, and lower dividends from AIG's investment in Corebridge Financial, Inc. (Corebridge) partially offset by higher income from available for sale fixed maturity securities of $440 million. For additional information, see Note 6 to the Consolidated Financial Statements;

•higher Net realized losses of $654 million, primarily driven by impairments on investments in real estate funds, higher losses on derivative and hedge activity, lower gains on foreign exchange, partially offset by lower losses on fixed income securities. For additional information, see Investments – Investment Strategies – Net Realized Gains and Losses;

•lower General operating and other expenses primarily driven by lower restructuring and other related costs of $306 million;

•lower Income tax expense of $388 million primarily driven by a valuation allowance release related to our U.S. federal consolidated tax attribute carryforwards. For additional information, see Note 21 to the Consolidated Financial Statements;

•absence of loss from discontinued operations, net of income taxes of $3.6 billion as a result of the deconsolidation of Corebridge in June 2024;

•lower Net income attributable to noncontrolling interest of $477 million primarily driven by the Corebridge accounting change post-deconsolidation.

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.

For information regarding AIG’s business segment operations for the year ended December 31, 2024 compared with the year ended December 31, 2023, see Part II, Item 7. MD&A – Business Segment Operations in the 2024 Annual Report.

General Insurance

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

GENERAL INSURANCE

Years Ended December 31,

Change

(in millions)

2025

2024

2023

2025 vs 2024

2024 vs 2023

Underwriting results:

Net premiums written

$

23,675 

$

23,902 

$

26,719 

(1)

%

(11)

%

Net premiums written, on constant dollar basis

(1)

(10)

(Increase) decrease in unearned premiums

3 

(445)

(1,628)

NM

73 

Net premiums earned

23,678 

23,457 

25,091 

1 

(7)

Losses and loss adjustment expenses incurred(a)

13,968 

14,038 

14,775 

— 

(5)

Acquisition expenses:

Amortization of deferred policy acquisition costs

3,357 

3,413 

3,623 

(2)

(6)

Other acquisition expenses

938 

1,137 

1,279 

(18)

(11)

Total acquisition expenses

4,295 

4,550 

4,902 

(6)

(7)

General operating expenses

3,083 

2,952 

3,065 

4 

(4)

Underwriting income

2,332 

1,917 

2,349 

22 

(18)

44

AIG | 2025 Form 10-K

TABLE OF CONTENTS

ITEM 7 | Business Segment Operations | General Insurance

Years Ended December 31,

Change

(in millions)

2025

2024

2023

2025 vs 2024

2024 vs 2023

Net investment income

3,433 

3,060 

3,022 

12 

1 

Adjusted pre-tax income

$

5,765 

$

4,977 

$

5,371 

16 

%

(7)

%

Loss ratio(a)

59.0 

59.8 

58.9 

(0.8)

0.9 

Acquisition ratio

18.1 

19.4 

19.5 

(1.3)

(0.1)

General operating expense ratio

13.0 

12.6 

12.2 

0.4 

0.4 

Expense ratio

31.1 

32.0 

31.7 

(0.9)

0.3 

Combined ratio(a)

90.1 

91.8 

90.6 

(1.7)

1.2 

Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:

Catastrophe losses and reinstatement premiums

(3.9)

(5.0)

(4.3)

1.1 

(0.7)

Prior year development, net of reinsurance and prior year premiums

2.1 

1.4 

1.4 

0.7 

— 

Accident year loss ratio, as adjusted

57.2 

56.2 

56.0 

1.0 

0.2 

Accident year combined ratio, as adjusted

88.3 

88.2 

87.7 

0.1 

0.5 

(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 tables present General Insurance accident year catastrophes(a) by segment:

(dollars in millions)

North America

Commercial

International

Commercial

Global

Personal

Total

Years Ended December 31, 2025

Flooding, rainstorms and other

$

— 

$

10 

$

17 

$

27 

Windstorms and hailstorms

226 

94 

46 

366 

Winter storms

40 

— 

1 

41 

Wildfires

207 

48 

185 

440 

Earthquakes

— 

39 

2 

41 

Reinstatement premiums

5 

(1)

1 

5 

Total catastrophe-related charges

$

478 

$

190 

$

252 

$

920 

Years Ended December 31, 2024

Flooding, rainstorms and other

$

2 

$

98 

$

— 

$

100 

Windstorms and hailstorms

700 

133 

135 

968 

Winter storms

44 

1 

7 

52 

Wildfires

41 

— 

— 

41 

Earthquakes

— 

7 

— 

7 

Reinstatement premiums

12 

(2)

— 

10 

Total catastrophe-related charges

$

799 

$

237 

$

142 

$

1,178 

Years Ended December 31, 2023

Flooding, rainstorms and other

$

10 

$

72 

$

20 

$

102 

Windstorms and hailstorms

396 

186 

126 

708 

Winter storms

24 

4 

17 

45 

Wildfires

131 

19 

13 

163 

Earthquakes

20 

29 

— 

49 

Reinstatement premiums

31 

(1)

1 

31 

Total catastrophe-related charges

$

612 

$

309 

$

177 

$

1,098 

(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.

AIG | 2025 Form 10-K

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TABLE OF CONTENTS

ITEM 7 | Business Segment Operations | General Insurance

NORTH AMERICA COMMERCIAL

The North America Commercial segment consists of insurance businesses and operations in the United States, Canada and Bermuda. Products include Property, Casualty and Financial Lines, with clients ranging from small and medium-sized businesses to multinational companies.

Years Ended December 31,

Change

(in millions)

2025

2024

2023

2025 vs 2024

2024 vs 2023

Underwriting results:

Net premiums written

$

8,759 

$

8,452 

$

11,432 

4 

%

(26)

%

Net premiums written, on constant dollar basis

4 

(26)

Increase in unearned premiums

(133)

(280)

(1,199)

53 

77 

Net premiums earned

8,626 

8,172 

10,233 

6 

(20)

Losses and loss adjustment expenses incurred(a)

5,466 

5,713 

6,323 

(4)

(10)

Acquisition expenses:

Amortization of deferred policy acquisition costs

862 

824 

1,371 

5 

(40)

Other acquisition expenses

216 

222 

231 

(3)

(4)

Total acquisition expenses

1,078 

1,046 

1,602 

3 

(35)

General operating expenses

938 

865 

953 

8 

(9)

Underwriting income

$

1,144 

$

548 

$

1,355 

109 

%

(60)

%

Loss ratio(a)

63.4 

69.9 

61.8 

(6.5)

8.1 

Acquisition ratio

12.5 

12.8 

15.7 

(0.3)

(2.9)

General operating expense ratio

10.9 

10.6 

9.3 

0.3 

1.3 

Expense ratio

23.4 

23.4 

25.0 

— 

(1.6)

Combined ratio(a)

86.8 

93.3 

86.8 

(6.5)

6.5 

Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:

Catastrophe losses and reinstatement premiums

(5.6)

(9.7)

(5.9)

4.1 

(3.8)

Prior year development, net of reinsurance and prior year premiums

4.6 

1.5 

3.7 

3.1 

(2.2)

Accident year loss ratio, as adjusted

62.4 

61.7 

59.6 

0.7 

2.1 

Accident year combined ratio, as adjusted

85.8 

85.1 

84.6 

0.7 

0.5 

(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.

Premiums Years Ended December 31, 2025 and 2024 Comparison

Net premiums written increased by $307 million, or 4 percent, primarily due to growth in Programs, driven by new business, and Casualty, partially offset by lower production in Property. The increase in Net premiums earned is primarily driven by the same factors.

Underwriting Results Years Ended December 31, 2025 and 2024 Comparison

North America Commercial produced underwriting income of $1.1 billion from a combined ratio of 86.8, which was a 6.5 point improvement. This was driven by a lower loss ratio (6.5 points) from:

•lower catastrophe losses (4.1 points); and

•higher net favorable prior year reserve development (3.1 points), with favorable development driven by Casualty.

This was partially offset by a higher accident year loss ratio, as adjusted (0.7 points) due to changes in business mix.

The expense ratio was flat, as a lower acquisition ratio (0.3 points) primarily driven by changes in business mix offset the increase in the general operating expense ratio (0.3 points).

The accident year loss ratio, as adjusted, and general operating expense ratio were both impacted by higher reapportionment of corporate expenses from lean parent implementation.

For additional information on prior year development, see Insurance Reserves.

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AIG | 2025 Form 10-K

TABLE OF CONTENTS

ITEM 7 | Business Segment Operations | General Insurance

INTERNATIONAL COMMERCIAL

The International Commercial segment consists of insurance businesses and operations in Middle East and Africa (EMEA region), the United Kingdom, Japan, Europe, Asia Pacific, Latin America and Caribbean, and China. The International Commercial segment also includes the results of Talbot Holdings Ltd. (Talbot) as well as AIG’s Global Specialty business. Products include Property, Casualty and Financial Lines, with clients ranging from small and medium-sized businesses to multinational companies. Global Specialty products include aviation, political risk, trade credit and trade finance.

Years Ended December 31,

Change

(in millions)

2025

2024

2023

2025 vs 2024

2024 vs 2023

Underwriting results:

Net premiums written

$

8,663 

$

8,364 

$

8,168 

4 

%

2 

%

Net premiums written, on constant dollar basis

3 

3 

Increase in unearned premiums

(83)

(219)

(204)

62 

(7)

Net premiums earned

8,580 

8,145 

7,964 

5 

2 

Losses and loss adjustment expenses incurred

4,781 

4,463 

4,641 

7 

(4)

Acquisition expenses:

Amortization of deferred policy acquisition costs

1,088 

1,018 

943 

7 

8 

Other acquisition expenses

364 

342 

350 

6 

(2)

Total acquisition expenses

1,452 

1,360 

1,293 

7 

5 

General operating expenses

1,229 

1,095 

1,028 

12 

7 

Underwriting income

$

1,118 

$

1,227 

$

1,002 

(9)

%

22 

%

Loss ratio

55.7 

54.8 

58.3 

0.9 

(3.5)

Acquisition ratio

16.9 

16.7 

16.2 

0.2 

0.5 

General operating expense ratio

14.3 

13.4 

12.9 

0.9 

0.5 

Expense ratio

31.2 

30.1 

29.1 

1.1 

1.0 

Combined ratio

86.9 

84.9 

87.4 

2.0 

(2.5)

Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:

Catastrophe losses and reinstatement premiums

(2.2)

(2.9)

(3.9)

0.7 

1.0 

Prior year development, net of reinsurance and prior year premiums

0.9 

1.0 

(1.8)

(0.1)

2.8 

Accident year loss ratio, as adjusted

54.4 

52.9 

52.6 

1.5 

0.3 

Accident year combined ratio, as adjusted

85.6 

83.0 

81.7 

2.6 

1.3 

Premiums Years Ended December 31, 2025 and 2024 Comparison

Net premiums written, excluding the favorable impact of foreign exchange ($38 million), increased by $261 million, or 3 percent, primarily from Property, Global Specialty and Casualty driven by strength of renewal retentions and new business growth, partially offset by lower production in Financial Lines. The increase in Net premiums earned is primarily driven by the same factors.

Underwriting Results Years Ended December 31, 2025 and 2024 Comparison

International Commercial produced underwriting income of $1.1 billion from a combined ratio of 86.9, which was 2.0 points higher. This was driven by a higher loss ratio (0.9 points) from:

•higher accident year loss ratio, as adjusted (1.5 points) due to changes in business mix; and

•lower net favorable prior year reserve development (0.1 points), with favorable development driven by Property and Specialty.

This was partially offset by lower catastrophe losses (0.7 points).

The expense ratio increased by 1.1 points, from a mix-driven increase in the acquisition ratio (0.2 points) and an increase in the general operating expense ratio (0.9 points).

The accident year loss ratio, as adjusted, and general operating expense ratio were both impacted by higher reapportionment of corporate expenses from lean parent implementation.

For additional information on prior year development, see Insurance Reserves.

AIG | 2025 Form 10-K

47

TABLE OF CONTENTS

ITEM 7 | Business Segment Operations | General Insurance

GLOBAL PERSONAL

The Global Personal segment consists primarily of Global Accident & Health and Personal Lines insurance businesses in the United States, Japan, the United Kingdom, EMEA region, Asia Pacific, Latin America and Caribbean, and China. 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 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.

Years Ended December 31,

Change

(in millions)

2025

2024

2023

2025 vs 2024

2024 vs 2023

Underwriting results:

Net premiums written

$

6,253 

$

7,086 

$

7,119 

(12)

%

— 

%

Net premiums written, on constant dollar basis

(13)

2 

(Increase) decrease in unearned premiums

219 

54 

(225)

306 

NM

Net premiums earned

6,472 

7,140 

6,894 

(9)

4 

Losses and loss adjustment expenses incurred

3,721 

3,862 

3,811 

(4)

1 

Acquisition expenses:

Amortization of deferred policy acquisition costs

1,407 

1,571 

1,309 

(10)

20 

Other acquisition expenses

358 

573 

698 

(38)

(18)

Total acquisition expenses

1,765 

2,144 

2,007 

(18)

7 

General operating expenses

916 

992 

1,084 

(8)

(8)

Underwriting income (loss)

$

70 

$

142 

$

(8)

(51)

%

NM

%

Loss ratio

57.5 

54.1 

55.3 

3.4 

(1.2)

Acquisition ratio

27.3 

30.0 

29.1 

(2.7)

0.9 

General operating expense ratio

14.2 

13.9 

15.7 

0.3 

(1.8)

Expense ratio

41.5 

43.9 

44.8 

(2.4)

(0.9)

Combined ratio

99.0 

98.0 

100.1 

1.0 

(2.1)

Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:

Catastrophe losses and reinstatement premiums

(3.9)

(2.0)

(2.6)

(1.9)

0.6 

Prior year development, net of reinsurance and prior year premiums

0.6 

1.6 

1.8 

(1.0)

(0.2)

Accident year loss ratio, as adjusted

54.2 

53.7 

54.5 

0.5 

(0.8)

Accident year combined ratio, as adjusted

95.7 

97.6 

99.3 

(1.9)

(1.7)

Premiums Years Ended December 31, 2025 and 2024 Comparison

Net premiums written, excluding the favorable impact of foreign exchange ($65 million) decreased by $898 million, or 13 percent, primarily due to the sale of AIG’s global individual personal travel insurance and assistance business in December 2024 ($718 million), U.S. high net worth due to changes in reinsurance structure and lower production in Warranty, partially offset by growth in Personal Property and Personal Auto. The increase in Net premiums earned is primarily driven by the same factors.

Underwriting Results Years Ended December 31, 2025 and 2024 Comparison

Global Personal produced underwriting income of $70 million from a combined ratio of 99.0, which was 1.0 points higher. This was driven by a higher loss ratio (3.4 points) from:

•higher catastrophe losses (1.9 points);

•lower net favorable prior year reserve development (1.0 points), with favorable development driven by U.S. high net worth; and

•higher accident year loss ratio, as adjusted (0.5 points) due primarily to the sale of AIG’s global individual personal travel insurance and assistance business (1.7 points) partially offset by favorable changes in business mix.

The expense ratio improved by 2.4 points, reflecting a lower acquisition ratio (2.7 points) primarily driven by changes in business mix and improved commission terms, partially offset by an increase in the general operating expense ratio (0.3 points).

The accident year loss ratio, as adjusted, and general operating expense ratio were both impacted by higher reapportionment of corporate expenses from lean parent implementation.

For additional information on prior year development, see Insurance Reserves.

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AIG | 2025 Form 10-K

TABLE OF CONTENTS

ITEM 7 | 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

Years Ended December 31,

Change

(in millions)

2025

2024

2023

2025 vs 2024

2024 vs 2023

Net investment income and other

$

349 

$

434 

$

190 

(20)

%

128 

%

Benefits, losses and expenses:

Corporate and other general operating expenses

360 

623 

698 

(42)

(11)

Amortization of intangible assets

18 

18 

27 

— 

(33)

Interest expense

392 

445 

498 

(12)

(11)

Total benefits, losses and expenses

770 

1,086 

1,223 

(29)

(11)

Adjusted pre-tax loss before consolidation and eliminations

(421)

(652)

(1,033)

35 

37 

Consolidation and eliminations

— 

(1)

(17)

NM

94 

Adjusted pre-tax loss*

$

(421)

$

(653)

$

(1,050)

36 

%

38 

%

*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.

ADJUSTED PRE-TAX LOSS BEFORE CONSOLIDATION AND ELIMINATIONS

Years Ended December 31, 2025 and 2024 Comparison

Adjusted pre-tax loss before consolidation and eliminations decreased $231 million primarily due to the following:

•lower net investment income and other of $85 million due to lower dividend income from Corebridge of $72 million and lower interest on AIG Parent portfolio as a result of lower yields;

•lower corporate and other general operating expenses of $263 million primarily driven by reapportionment of corporate expenses from lean parent implementation to the business; and

•lower interest expense of $53 million primarily driven by interest savings from $2.4 billion debt repurchases, through cash tender offers, debt redemption and maturities in 2025 and 2024 partially offset by new debt issuance of $1.25 billion in 2025 and ¥100 billion debt, equivalent to approximately $660 million in 2024.

Use of Non-GAAP Measures

Throughout this MD&A, we present our financial condition and results of operations in the way we believe will be most meaningful and representative of our business results. Some of the measurements we use are “non-GAAP financial measures” under SEC rules and regulations. GAAP is the acronym for “generally accepted accounting principles” in the United States. 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 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 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

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ITEM 7 | Use of Non-GAAP Measures

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 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.

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.

December 31,

(in millions, except per share data)

2025

2024

2023

Total AIG shareholders' equity

$

41,139 

$

42,521 

$

45,351 

Preferred equity

— 

— 

485 

Total AIG common shareholders' equity

41,139 

42,521 

44,866 

Less: Investments related AOCI

(1,376)

(2,872)

(10,994)

Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets

(523)

(667)

(1,791)

Subtotal: Investments AOCI

(853)

(2,205)

(9,203)

AIG adjusted common shareholders' equity

$

41,992 

$

44,726 

$

54,069 

Total AIG common shareholders' equity

$

41,139 

$

42,521 

$

44,866 

Less: AIG's ownership interest in Corebridge

1,512 

3,810 

6,738 

Less: Investments related AOCI - AIG

(1,376)

(2,872)

(3,084)

Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets - AIG

(523)

(667)

(573)

Subtotal: Investments AOCI - AIG

(853)

(2,205)

(2,511)

Less: Deferred tax assets

3,278 

3,489 

4,313 

AIG core operating shareholders' equity

$

37,202 

$

37,427 

$

36,326 

Total common shares outstanding

538.2 

606.1 

688.8 

Book value per share

$

76.44 

$

70.16 

$

65.14 

Adjusted book value per share

78.02 

73.79 

78.50 

Core operating book value per share

69.12 

61.75 

52.74 

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. 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 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 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 provides 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.

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ITEM 7 | Use of Non-GAAP Measures

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.

Years Ended December 31,

(dollars in millions)

2025 

2024 

2023 

Actual or annualized net income (loss) attributable to AIG common shareholders

$

3,096 

$

(1,426)

$

3,614 

Actual or annualized adjusted after-tax income attributable to AIG common shareholders

$

4,044 

$

3,254 

$

3,205 

Average AIG common shareholders' equity

$

41,535 

$

44,051 

$

41,930 

Less: Average investments AOCI

(1,418)

(5,132)

(14,836)

Average AIG adjusted common shareholders' equity

$

42,953 

$

49,183 

$

56,766 

Average AIG common shareholders' equity

$

41,535 

$

44,051 

$

41,930 

Less: Average AIG's ownership interest in Corebridge

3,207 

6,770 

7,376 

Less: Average Investments AOCI - AIG

(1,418)

(2,351)

(3,254)

Less: Average deferred tax assets

3,264 

3,998 

4,322 

Average AIG core operating shareholders' equity

$

36,482 

$

35,634 

$

33,486 

Return on equity

7.5 

%

(3.2)

%

8.6 

%

Adjusted return on equity

9.4 

6.6 

5.6 

Core operating return on equity

11.1 

9.1 

9.6 

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/loss on sale of shares;

•net investment income on Fortitude Re funds withheld assets;

•net realized gains and losses on Fortitude Re funds withheld assets;

•loss (gain) on extinguishment of debt;

•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. Earned income on such economic hedges is reclassified from net realized gains and losses to specific APTI line items based on the economic risk being hedged (e.g. net investment income);

•income or loss from discontinued operations;

•net loss reserve discount benefit (charge);

•net results of businesses in run-off;

•non-operating pension expenses;

•net gain or loss on divestitures and other;

•non-operating litigation reserves and settlements;

•restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency and simplify our organization;

•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;

•integration and transaction costs associated with acquiring or divesting businesses;

•losses from the impairment of goodwill;

•non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes or changes to accounting principles; and

•income from elimination of the international reporting lag.

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;

•changes in uncertain tax positions and other tax items related to legacy matters having no relevance to our current businesses or operating performance; and

•net tax charge related to the enactment of the Tax Cuts and Jobs Act.

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ITEM 7 | Use of Non-GAAP Measures

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:

Years Ended December 31,

2025

2024

2023

(in millions, except per common share data)

Pre-tax

Total Tax

(Benefit)

Charge

Non-

controlling

Interests(a)

After

Tax

Pre-tax

Total Tax

(Benefit)

Charge

Non-

controlling

Interests(a)

After

Tax

Pre-tax

Total Tax

(Benefit)

Charge

Non-

controlling

Interests(a)

After

Tax

Pre-tax income/net income (loss), including noncontrolling interests

$

3,879 

$

782 

$

— 

$

3,097 

$

3,870 

$

1,170 

$

— 

$

(926)

$

2,867 

$

126 

$

— 

$

3,878 

Noncontrolling interests(a)

(1)

(1)

(478)

(478)

(235)

(235)

Pre-tax income/net income (loss) attributable to AIG - including discontinued operations

$

3,879 

$

782 

$

(1)

$

3,096 

$

3,870 

$

1,170 

$

(478)

$

(1,404)

$

2,867 

$

126 

$

(235)

$

3,643 

Dividends on preferred stock and preferred stock redemption premiums

— 

22 

29 

Net income (loss) attributable to AIG common shareholders

$

3,096 

$

(1,426)

$

3,614 

Changes in uncertain tax positions and other tax adjustments

(35)

— 

35 

(239)

— 

239 

176 

— 

(176)

Deferred income tax valuation allowance releases(b)

305 

— 

(305)

30 

— 

(30)

365 

— 

(365)

Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares

(255)

(54)

— 

(201)

(586)

(123)

— 

(463)

(53)

(11)

— 

(42)

(Gain) loss on extinguishment of debt and preferred stock redemption premiums

(5)

(1)

— 

(4)

14 

3 

— 

26 

(37)

(8)

— 

(29)

Net investment income on Fortitude Re funds withheld assets

(149)

(31)

— 

(118)

(144)

(30)

— 

(114)

(180)

(38)

— 

(142)

Net realized losses on Fortitude Re funds withheld assets

70 

15 

— 

55 

39 

8 

— 

31 

71 

15 

— 

56 

Net realized losses on Fortitude Re funds withheld embedded derivative

166 

34 

— 

132 

75 

16 

— 

59 

273 

57 

— 

216 

Net realized losses(c)

973 

145 

— 

828 

428 

95 

— 

333 

743 

128 

— 

615 

(Income) loss from discontinued operations

— 

3,626 

(1,137)

Net gain on divestitures and other

(81)

(17)

— 

(64)

(616)

(128)

— 

(488)

29 

149 

— 

(120)

Non-operating litigation reserves and settlements

(9)

(2)

— 

(7)

— 

— 

— 

— 

1 

— 

— 

1 

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

105 

22 

— 

83 

105 

22 

— 

83 

(62)

(13)

— 

(49)

Net loss reserve discount charge

48 

10 

— 

38 

226 

47 

— 

179 

195 

41 

— 

154 

Net results of businesses in run-off(d)

(4)

(1)

— 

(3)

111 

24 

— 

87 

31 

7 

— 

24 

Non-operating pension expenses

15 

3 

— 

12 

— 

— 

— 

— 

71 

15 

— 

56 

Integration and transaction costs associated with acquiring or divesting businesses

136 

29 

— 

107 

39 

8 

— 

31 

6 

1 

— 

5 

Restructuring and other costs(e)

439 

92 

— 

347 

745 

156 

— 

589 

356 

75 

— 

281 

Non-recurring costs related to regulatory or accounting changes

16 

3 

— 

13 

18 

4 

— 

14 

22 

5 

— 

17 

Net impact from elimination of international reporting lag

— 

— 

— 

— 

— 

— 

— 

— 

(12)

(3)

— 

(9)

Noncontrolling interests(a)

— 

— 

478 

478 

235 

235 

Adjusted pre-tax income/Adjusted after-tax income attributable to AIG common shareholders

$

5,344 

$

1,299 

$

(1)

$

4,044 

$

4,324 

$

1,063 

$

— 

$

3,254 

$

4,321 

$

1,087 

$

— 

$

3,205 

Weighted average diluted shares outstanding

570.3 

657.3 

725.2 

Income (loss) per common share attributable to AIG common shareholders (diluted)

$

5.43 

$

(2.17)

$

4.98 

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

$

7.09 

$

4.95 

$

4.42 

(a)Noncontrolling interest primarily relates to Corebridge and is the portion of Corebridge earnings that AIG did not own. Corebridge was consolidated until June 9, 2024. The historical results of Corebridge owned by AIG are reflected in Income (loss) from discontinued operations, net of income taxes.

(b)The years ended December 31, 2025 and 2023 include a valuation allowance release related to our U.S. federal consolidated tax attribute carryforwards, as well as valuation allowance changes in certain foreign jurisdictions.

(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.

(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. In the third quarter of 2025, AIG began excluding the net results of run-off businesses previously reported in General Insurance from Adjusted pre-tax income.

(e)In the years ended December 31, 2025 and 2024, Restructuring and other costs was primarily related to employee-related costs, including severance, and, in the year ended December 31, 2024, real estate impairment charges.

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ITEM 7 | Use of Non-GAAP Measures

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):

Years Ended December 31,

2025

2024

2023

General Insurance

Other Operations

General Insurance

Other Operations

General Insurance

Other Operations

(in millions)

Net

Investment

Income

and Other

Pre-tax

Income

(Loss)

Net

Investment

Income

and Other

Pre-tax

Income

(Loss)

Net

Investment

Income

and Other

Pre-tax

Income

(Loss)

Net

Investment

Income

and Other

Pre-tax

Income

(Loss)

Net

Investment

Income

and Other

Pre-tax

Income

(Loss)

Net

Investment

Income

and Other

Pre-tax

Income

(Loss)

Net investment income and other/Pre-tax income (loss)

$

3,511 

$

4,031 

$

712 

$

(152)

$

3,215 

$

4,474 

$

1,047 

$

(604)

$

3,150 

$

4,308 

$

302 

$

(1,441)

Consolidation and Eliminations

— 

— 

1 

— 

— 

— 

— 

— 

— 

— 

13 

— 

Other income (expense) - net

(6)

— 

(5)

— 

(31)

— 

18 

— 

(49)

— 

39 

— 

Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares

(74)

(74)

(181)

(181)

(73)

(73)

(513)

(513)

(84)

(84)

31 

31 

(Gain) loss on extinguishment of debt

— 

— 

— 

(5)

— 

— 

— 

14 

— 

— 

— 

(37)

Net investment income on Fortitude Re funds withheld assets

1 

1 

(150)

(150)

(44)

(44)

(100)

(100)

(4)

(4)

(176)

(176)

Net realized losses on Fortitude Re funds withheld assets

— 

6 

— 

64 

— 

8 

— 

31 

— 

1 

— 

70 

Net realized gains on Fortitude Re funds withheld embedded derivative

— 

— 

— 

166 

— 

— 

— 

75 

— 

(18)

— 

291 

Net realized (gains) losses

1 

1,358 

3 

(385)

(7)

330 

(1)

98 

10 

731 

2 

12 

Net loss (gain) on divestitures and other

— 

(55)

— 

(26)

— 

(522)

— 

(94)

— 

18 

— 

11 

Non-operating litigation reserves and settlements

— 

4 

— 

(13)

— 

— 

— 

— 

— 

— 

— 

1 

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

— 

69 

— 

36 

— 

101 

— 

4 

— 

(42)

— 

(20)

Net loss reserve discount charge

— 

48 

— 

— 

— 

226 

— 

— 

— 

195 

— 

— 

Net results of businesses in run-off

— 

— 

(31)

(4)

— 

— 

(17)

111 

— 

— 

(21)

31 

Non-operating pension expenses

— 

16 

— 

(1)

— 

— 

— 

— 

— 

60 

— 

11 

Integration and transaction costs associated with acquiring or divesting businesses

— 

19 

— 

117 

— 

— 

— 

39 

— 

1 

— 

5 

Restructuring and other costs

— 

326 

— 

113 

— 

459 

— 

286 

— 

195 

— 

161 

Non-recurring costs related to regulatory or accounting changes

— 

16 

— 

— 

— 

18 

— 

— 

— 

22 

— 

— 

Net impact from elimination of international reporting lag

— 

— 

— 

— 

— 

— 

— 

— 

(1)

(12)

— 

— 

Net investment income and other, APTI basis/Adjusted pre-tax income (loss)

$

3,433 

$

5,765 

$

349 

$

(421)

$

3,060 

$

4,977 

$

434 

$

(653)

$

3,022 

$

5,371 

$

190 

$

(1,050)

Ratios: We, along with most property and casualty insurance companies, use the loss ratio, the expense ratio and the combined ratio as measures of underwriting performance. These ratios are relative measurements that describe, for every $100 of net premiums earned, the amount of losses and loss adjustment expenses (which for General Insurance excludes net loss reserve discount), and the amount of other underwriting expenses that would be incurred. A combined ratio of less than 100 indicates underwriting income and a combined ratio of over 100 indicates an underwriting loss. Our ratios are calculated using the relevant segment information calculated under GAAP, and thus may not be comparable to similar ratios calculated for regulatory reporting purposes. The underwriting environment varies across countries and products, as does the degree of litigation activity, all of which affect such ratios. 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-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. 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 disorders that exceed the $10 million threshold. We believe that as adjusted ratios are meaningful measures of our underwriting results on an ongoing basis as they exclude catastrophes and the impact of reserve discounting which are outside of management’s control. We also exclude prior year development to provide transparency related to current accident year results.

Results from discontinued operations are excluded from all of these measures.

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ITEM 7 | Investments

Investments

OVERVIEW

Our investment strategies are tailored to the specific business needs of each segment by targeting an asset allocation mix that supports estimated cash flow needs of our outstanding liabilities and provides diversification from an asset class, sector, issuer, and geographic perspective. The primary objectives are generation of investment income, preservation of capital, liquidity management and growth of surplus. The majority of assets backing our insurance liabilities consist of fixed maturity securities.

INVESTMENT HIGHLIGHTS IN 2025

•Blended investment yields on new investments were 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 decreased for the year ended December 31, 2025 compared to the prior year, primarily due to lower gains on the changes in the fair value, lower gains on sale of shares, and lower dividends from AIG's investment in Corebridge, and lower income from mortgage loans, partially offset by higher income on available for sale fixed maturity securities and Alternatives investments.

INVESTMENT STRATEGIES

Investment strategies are assessed at the segment level and involve considerations that include local and general market and economic conditions, duration and cash flow management, risk appetite and volatility constraints, rating agency and regulatory capital considerations, tax, regulatory and legal investment limitations, and, as applicable, environmental, social and governance considerations.

Some of our key investment strategies are as follows:

•Our fundamental strategy across the portfolios is to seek investments with similar duration and cash flow characteristics to the associated insurance liabilities to the extent practicable.

•We seek to purchase investments like Private Assets that offer enhanced yield through illiquidity premiums and other portfolio diversification benefits. These assets typically provide credit protections through covenants and offset custom structures that meet the insurance company needs.

•Given our global presence, we seek investments that provide diversification from investments available in local markets. To the extent we purchase these investments, we generally hedge any currency risk using derivatives, which could provide opportunities to earn higher risk adjusted returns compared to investments in the functional currency.

•AIG Parent, included in Other Operations, actively manages its assets and liabilities, counterparties and duration. AIG Parent’s liquidity sources are held primarily in the form of cash and short-term investments. This strategy allows us to both diversify our sources of liquidity and reduce the cost of maintaining sufficient liquidity.

•Within the U.S., General Insurance investments are generally split between reserve backing and surplus portfolios.

–Insurance reserves are backed mainly by investment grade fixed maturity securities that meet our duration, risk-return, capital, tax, liquidity, credit quality and diversification objectives. We assess asset classes based on their fundamental underlying risk factors, including credit (public and private), commercial real estate and residential real estate, regardless of whether such investments are bonds, loans, or structured products.

–Surplus investments seek to enhance portfolio returns and are generally comprised of a mix of fixed maturity investment grade and below investment grade securities and various alternative asset classes, including private equity and private credit.

•Outside of the U.S., fixed maturity securities held by our insurance companies consist primarily of investment-grade securities generally denominated in the currencies of the countries in which we operate.

•We also utilize derivatives to manage our asset and liability duration as well as currency exposures.

54

AIG | 2025 Form 10-K

TABLE OF CONTENTS

ITEM 7 | Investments

Asset-Liability Management

The investment strategy within the General Insurance companies focuses on growth of surplus, maintenance of sufficient liquidity for unanticipated insurance claims, and preservation of capital. General Insurance invests primarily in fixed maturity securities issued by corporations, municipalities and other governmental agencies; structured securities collateralized by, among other assets, residential and commercial real estate; and commercial mortgage loans. Fixed maturity securities of the General Insurance companies have an average duration of 3.8 years.

While assets backing reserves of the General Insurance companies are primarily invested in conventional liquid fixed maturity securities, we have also continued to allocate a portion of our portfolio to asset classes that offer higher yields through structural and illiquidity premiums, particularly in our North America operations. In addition, we continue to invest in both fixed rate and floating rate asset-backed investments to manage our exposure to potential changes in interest rates and inflation. We seek to diversify the portfolio across asset classes, sectors and issuers to mitigate idiosyncratic portfolio risks.

In addition, a portion of the surplus of General Insurance companies is invested in a diversified portfolio of alternative investments that seek to balance liquidity, volatility and growth of surplus. 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.

Available-for-Sale Investments

The following table presents the fair value of our available-for-sale securities:

(in millions)

December 31, 2025

December 31, 2024

Bonds available for sale:

U.S. government and government sponsored entities

$

3,298 

$

3,267 

Obligations of states, municipalities and political subdivisions

2,775 

3,143 

Non-U.S. governments

6,516 

8,107 

Corporate debt

37,235 

31,826 

Mortgage-backed, asset-backed and collateralized:

RMBS - agency

5,988 

4,978 

RMBS - non-agency

4,180 

3,626 

CMBS

4,616 

3,926 

CLO/ABS

6,424 

5,133 

Total mortgage-backed, asset-backed and collateralized

21,208 

17,663 

Total bonds available for sale*

$

71,032 

$

64,006 

*At December 31, 2025 and 2024, the fair value of bonds available for sale we held that were below investment grade or not rated totaled $5.9 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)

December 31, 2025

December 31, 2024

Canada

$

1,207 

$

1,384 

Japan

489 

555 

Germany

444 

834 

United Kingdom

344 

416 

Israel

322 

312 

Australia

284 

335 

Denmark

241 

205 

Malaysia

216 

220 

Korea, Republic of

214 

268 

Singapore

206 

204 

Other

2,572 

3,398 

Total

$

6,539 

$

8,131 

AIG | 2025 Form 10-K

55

TABLE OF CONTENTS

ITEM 7 | Investments

The following table presents the fair value of our aggregate European credit exposures by major sector for our fixed maturity securities:

December 31, 2025

December 31,

2024

Total

(in millions)

Sovereign

Financial

 Institution

Non-Financial

Corporates

Structured

Products

Total

Euro-Zone countries:

France

$

134 

$

1,599 

$

481 

$

44 

$

2,258 

$

1,989 

Germany

444 

264 

895 

57 

1,660 

1,863 

Netherlands

86 

600 

324 

51 

1,061 

935 

Ireland

5 

106 

110 

512 

733 

584 

Spain

7 

335 

90 

62 

494 

321 

Italy

13 

103 

331 

33 

480 

369 

Denmark

241 

74 

22 

— 

337 

257 

Belgium

10 

132 

59 

15 

216 

242 

Luxembourg

14 

78 

95 

18 

205 

157 

Finland

8 

81 

3 

1 

93 

79 

Other Euro-Zone

214 

34 

33 

29 

310 

299 

Total Euro-Zone

$

1,176 

$

3,406 

$

2,443 

$

822 

$

7,847 

$

7,095 

Remainder of Europe:

United Kingdom

$

344 

$

1,561 

$

1,682 

$

430 

$

4,017 

$

3,262 

Switzerland

19 

252 

263 

— 

534 

484 

Sweden

121 

222 

29 

— 

372 

291 

Norway

59 

70 

7 

— 

136 

110 

Jersey (Channel Islands)

3 

3 

7 

45 

58 

94 

Other - Remainder of Europe

41 

14 

4 

— 

59 

50 

Total - Remainder of Europe

$

587 

$

2,122 

$

1,992 

$

475 

$

5,176 

$

4,291 

Total

$

1,763 

$

5,528 

$

4,435 

$

1,297 

$

13,023 

$

11,386 

Investments in Municipal Bonds

At December 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.

The following table presents the fair values of our available for sale U.S. municipal bond portfolio by state and municipal bond type:

December 31, 2025

(in millions)

State

General

Obligation

Local

General

Obligation

Revenue

Total

Fair

Value

December 31, 2024

Total Fair Value

California

$

212 

$

143 

$

335 

$

690 

$

716 

New York

28 

89 

284 

401 

422 

Massachusetts

40 

11 

116 

167 

199 

Texas

11 

32 

101 

144 

265 

Florida

1 

— 

126 

127 

143 

Pennsylvania

34 

— 

84 

118 

133 

Connecticut

26 

2 

83 

111 

125 

Illinois

4 

26 

54 

84 

110 

Georgia

48 

— 

25 

73 

79 

Oregon

7 

46 

14 

67 

71 

Hawaii

65 

— 

1 

66 

74 

Virginia

8 

3 

49 

60 

57 

Alabama

— 

— 

57 

57 

57 

All other states

37 

33 

540 

610 

692 

Total

$

521 

$

385 

$

1,869 

$

2,775 

$

3,143 

56

AIG | 2025 Form 10-K

TABLE OF CONTENTS

ITEM 7 | Investments

Investments in Corporate Debt Securities

The following table presents the fair value of our available for sale corporate debt securities by industry categories:

Industry Category

(in millions)

December 31, 2025

December 31, 2024

Financial institutions:

Banks

$

8,086 

$

7,085 

Insurance

1,378 

1,222 

Securities firms and other finance companies

856 

669 

Other financial institutions

5,733 

4,116 

Utilities

3,231 

2,659 

Communications

2,188 

1,844 

Consumer noncyclical

2,706 

2,715 

Capital goods

1,805 

1,715 

Energy

2,010 

1,702 

Consumer cyclical

3,649 

3,284 

Basic materials

2,093 

1,838 

Other

3,500 

2,977 

Total*

$

37,235 

$

31,826 

*At December 31, 2025 and 2024, approximately 88 percent and 88 percent, respectively, of these investments were rated investment grade.

Commercial Mortgage Loans

At December 31, 2025, we had direct commercial mortgage loan exposure of $2.5 billion.

The following table presents the commercial mortgage loan exposure by location and class of loan based on amortized cost:

Number

of Loans

Class

Percent

of Total

(dollars in millions)

Apartments

Offices

Retail

Industrial

Hotel

Others

Total

December 31, 2025

State:

California

17 

$

89 

$

190 

$

27 

$

18 

$

31 

$

— 

$

355 

14 

%

New York

17 

48 

188 

44 

19 

33 

— 

332 

13 

Texas

19 

72 

135 

1 

30 

10 

— 

248 

10 

Massachusetts

7 

— 

175 

48 

7 

— 

— 

230 

9 

Florida

11 

68 

— 

60 

8 

37 

— 

173 

7 

Pennsylvania

9 

28 

57 

15 

18 

— 

— 

118 

5 

Illinois

5 

88 

13 

— 

— 

— 

— 

101 

4 

New Jersey

8 

55 

— 

— 

3 

— 

10 

68 

3 

Washington

3 

49 

— 

— 

— 

— 

— 

49 

2 

Colorado

3 

7 

20 

16 

— 

— 

— 

43 

2 

Other states

23 

109 

12 

68 

28 

— 

— 

217 

9 

Foreign

23 

180 

196 

78 

27 

80 

— 

561 

22 

Total*

145 

$

793 

$

986 

$

357 

$

158 

$

191 

$

10 

$

2,495 

100 

%

December 31, 2024

State:

California

21 

$

97 

$

247 

$

30 

$

56 

$

32 

$

— 

$

462 

14 

%

New York

19 

43 

217 

70 

20 

32 

— 

382 

12 

Texas

19 

78 

201 

2 

31 

22 

— 

334 

10 

Massachusetts

9 

94 

156 

49 

7 

— 

— 

306 

9 

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 

Washington

5 

49 

— 

— 

— 

11 

— 

60 

2 

Other states

31 

134 

33 

63 

49 

6 

— 

285 

8 

Foreign

36 

278 

182 

98 

69 

117 

109 

853 

26 

Total*

190 

$

1,087 

$

1,108 

$

432 

$

301 

$

258 

$

119 

$

3,305 

100 

%

*Does not reflect allowance for credit losses.

AIG | 2025 Form 10-K

57

TABLE OF CONTENTS

ITEM 7 | Investments

For additional information on commercial mortgage loans, see Note 7 to the Consolidated Financial Statements.

Net Realized Gains and Losses

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

Years Ended December 31,

2025

2024

2023

(in millions)

Excluding

Fortitude

Re Funds

Withheld

Assets

Fortitude

Re

Funds

Withheld

Assets

Total

Excluding

Fortitude

Re Funds

Withheld

Assets

Fortitude

Re

Funds

Withheld

Assets

Total

Excluding

Fortitude

Re Funds

Withheld

Assets

Fortitude

Re

Funds

Withheld

Assets

Total

Sales of fixed maturity securities

$

(523)

$

(70)

$

(593)

$

(583)

$

(36)

$

(619)

$

(668)

$

(67)

$

(735)

Change in allowance for credit losses on fixed maturity securities

1 

— 

1 

(25)

— 

(25)

(44)

— 

(44)

Change in allowance for credit losses on loans

(10)

11 

1 

(23)

— 

(23)

(28)

3 

(25)

Foreign exchange transactions

146 

17 

163 

256 

(9)

247 

124 

5 

129 

All other derivatives and hedge accounting

(180)

(20)

(200)

(62)

7 

(55)

(165)

(8)

(173)

Sales of alternative investments

3 

— 

3 

(16)

— 

(16)

29 

— 

29 

Other*

(403)

(8)

(411)

19 

(1)

18 

18 

(4)

14 

Net realized losses – excluding Fortitude Re funds withheld embedded derivative

(966)

(70)

(1,036)

(434)

(39)

(473)

(734)

(71)

(805)

Net realized losses on Fortitude Re funds withheld embedded derivative

— 

(166)

(166)

— 

(75)

(75)

— 

(273)

(273)

Net realized losses

$

(966)

$

(236)

$

(1,202)

$

(434)

$

(114)

$

(548)

$

(734)

$

(344)

$

(1,078)

*In the year ended December 31, 2025, Other increased primarily as a result of impairments on investments in real estate funds, which were sold on December 23, 2025.

Higher Net realized losses excluding Fortitude Re funds withheld assets in the year ended December 31, 2025 compared to 2024 were primarily due to impairments on investments in real estate funds, higher losses on derivative and hedge activity, lower gains on foreign exchange, partially offset by lower losses on fixed income securities compared to the prior year period.

Net realized gains (losses) on Fortitude Re funds withheld assets primarily reflect changes in the valuation of the modified coinsurance and funds withheld assets. Increases in the valuation of these assets result in losses to AIG as the appreciation on the assets under those reinsurance arrangements must be transferred to Fortitude Re. Decreases in valuation of the assets result in gains to AIG as the depreciation on the assets under those reinsurance arrangements must be transferred to Fortitude Re. For additional information on the impact of the funds withheld arrangements with Fortitude Re, see Note 8 to the Consolidated Financial Statements.

For additional information on our investment portfolio, see Note 6 to the Consolidated Financial Statements. For information regarding AIG's net realized gains and losses for the year ended December 31, 2024 compared with the year ended December 31, 2023, see Part II, Item 7. MD&A – Investments – Investment Strategies – Net Realized Gains and Losses in the 2024 Annual Report.

Unrealized Gains and Losses on Investments

Net unrealized investment losses included in shareholders’ equity were $1.4 billion at December 31, 2025 compared with $2.9 billion at December 31, 2024. The change in net unrealized gains and losses on investments in the year ended December 31, 2025 was primarily attributable to a change in the fair value of fixed maturity securities mainly due to lower interest rates and narrowing of credit spreads. The change in net unrealized gains and losses on investments in the year ended December 31, 2024 was primarily attributable to a change in the fair value of fixed maturity securities mainly due to lower interest rates and narrowing of credit spreads.

At December 31, 2025, the Company had $1.4 billion fixed maturity investments reported at fair value for which fair value was less than 80 percent of amortized cost. At December 31, 2024, the Company had $2.4 billion fixed maturity investments reported at fair value for which fair value was less than 80 percent of amortized cost.

At December 31, 2025 and 2024, below investment grade securities comprised 8 percent and 6 percent, respectively, of the fair value of our fixed maturity investment portfolio. Included in below investment grade securities at December 31, 2025 were securities in an unrealized loss position that, in the aggregate, had an amortized cost of $1.9 billion and a fair value of $1.8 billion, resulting in a net pre-tax unrealized investment loss of $86 million.

For additional information on our investment portfolio, see Note 6 to the Consolidated Financial Statements.

58

AIG | 2025 Form 10-K

TABLE OF CONTENTS

ITEM 7 | Investments

CREDIT RATINGS

Moody’s Investors Service, Inc. (Moody’s), Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc. (S&P), Fitch Ratings Inc. (Fitch), 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 December 31, 2025, approximately 62 percent of our fixed maturity securities were held by our U.S. entities. Approximately 91 percent of these securities were rated investment grade by one or more of the major rating agencies.

At December 31, 2025, approximately 93 percent of our fixed maturity securities held by our foreign entities 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 17 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 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 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 Enterprise Risk Management – Credit Risk.

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 Bond Securities

Total

(in millions)

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Rating:

Other fixed maturity securities

AAA

$

4,063 

$

5,254 

$

14 

$

13 

$

4,077 

$

5,267 

AA

8,693 

9,599 

50 

80 

8,743 

9,679 

A

17,679 

14,420 

173 

114 

17,852 

14,534 

BBB

14,565 

12,839 

100 

145 

14,665 

12,984 

Below investment grade

4,730 

4,171 

11 

4 

4,741 

4,175 

Non-rated

94 

60 

— 

— 

94 

60 

Total

$

49,824 

$

46,343 

$

348 

$

356 

$

50,172 

$

46,699 

Mortgage-backed, asset-backed and collateralized

AAA

$

11,198 

$

8,757 

$

102 

$

134 

$

11,300 

$

8,891 

AA

7,468 

6,765 

49 

89 

7,517 

6,854 

A

1,030 

482 

135 

49 

1,165 

531 

BBB

411 

470 

77 

88 

488 

558 

Below investment grade

1,101 

1,189 

30 

29 

1,131 

1,218 

Non-rated

— 

— 

— 

— 

— 

— 

Total

$

21,208 

$

17,663 

$

393 

$

389 

$

21,601 

$

18,052 

Total

AAA

$

15,261 

$

14,011 

$

116 

$

147 

$

15,377 

$

14,158 

AA

16,161 

16,364 

99 

169 

16,260 

16,533 

A

18,709 

14,902 

308 

163 

19,017 

15,065 

BBB

14,976 

13,309 

177 

233 

15,153 

13,542 

Below investment grade

5,831 

5,360 

41 

33 

5,872 

5,393 

Non-rated

94 

60 

— 

— 

94 

60 

Total

$

71,032 

$

64,006 

$

741 

$

745 

$

71,773 

$

64,751 

AIG | 2025 Form 10-K

59

TABLE OF CONTENTS

ITEM 7 | Insurance Reserves

Insurance Reserves

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

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

December 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:

U.S. Workers' Compensation (net of discount)

$

2,273 

$

3,742 

$

6,015 

$

2,293 

$

3,916 

$

6,209 

U.S. Excess Casualty

3,153 

2,961 

6,114 

3,208 

3,139 

6,347 

U.S. Other Casualty

4,651 

3,170 

7,821 

4,387 

3,416 

7,803 

U.S. Financial Lines

5,270 

1,516 

6,786 

5,422 

1,614 

7,036 

U.S. Property and Special Risks

4,142 

990 

5,132 

4,297 

1,233 

5,530 

Other product lines(b)

4,356 

2,947 

7,303 

3,747 

2,947 

6,694 

Total North America Commercial

23,845 

15,326 

39,171 

23,354 

16,265 

39,619 

International Commercial:

UK/Europe Casualty and Financial Lines

8,288 

2,376 

10,664 

7,280 

1,952 

9,232 

UK/Europe Property and Special Risks

2,176 

2,214 

4,390 

2,355 

1,761 

4,116 

Other product lines(b)

1,882 

1,272 

3,154 

1,630 

1,230 

2,860 

Total International Commercial

12,346 

5,862 

18,208 

11,265 

4,943 

16,208 

Global Personal:

U.S. Personal Insurance

705 

1,986 

2,691 

836 

2,048 

2,884 

UK/Europe and Japan Personal Insurance

1,240 

733 

1,973 

1,269 

670 

1,939 

Other product lines(b)

1,109 

750 

1,859 

983 

776 

1,759 

Total Global Personal

3,054 

3,469 

6,523 

3,088 

3,494 

6,582 

Unallocated loss adjustment expenses(b)

1,965 

629 

2,594 

1,804 

744 

2,548 

Total General Insurance

41,210 

25,286 

66,496 

39,511 

25,446 

64,957 

Other Operations

585 

3,585 

4,170 

631 

3,580 

4,211 

Total

$

41,795 

$

28,871 

$

70,666 

$

40,142 

$

29,026 

$

69,168 

(a)Includes net loss reserve discount of $1.2 billion and $1.2 billion at December 31, 2025 and 2024, respectively. For information regarding loss reserve discount, see Note 13 to the 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 $2.3 billion and $2.7 billion at December 31, 2025 and 2024, respectively.

Prior Year Development

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

Years Ended December 31,

(in millions)

2025

2024

2023

General Insurance:

North America Commercial:

U.S. Workers' Compensation

$

(172)

$

(261)

$

(190)

U.S. Excess Casualty

85 

228 

(48)

U.S. Other Casualty

(8)

(25)

(134)

U.S. Financial Lines

(65)

(43)

37 

U.S. Property and Special Risks

(124)

8 

(7)

Other Product Lines

(148)

(63)

(65)

Total North America Commercial

$

(432)

$

(156)

$

(407)

International Commercial:

UK/Europe Casualty and Financial Lines

$

216 

$

170 

$

165 

UK/Europe Property and Special Risks

(19)

(35)

81 

Other Product Lines

(273)

(234)

(98)

Total International Commercial

$

(76)

$

(99)

$

148 

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Years Ended December 31,

(in millions)

2025

2024

2023

Global Personal:

U.S. Personal Insurance

$

(10)

$

(27)

$

(66)

UK/Europe and Japan Personal Insurance

37 

(47)

(57)

Other Product Lines

(67)

(39)

(9)

Total Global Personal

$

(40)

$

(113)

$

(132)

Total Prior Year (Favorable) Unfavorable Development*

$

(548)

$

(368)

$

(391)

*Includes the amortization attributed to the deferred gain at inception from the National Indemnity Company (NICO) adverse development reinsurance agreement of $124 million, $136 million and $164 million for the years ended December 31, 2025, 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 $102 million, $289 million and $(158) million for the years ended December 31, 2025, 2024 and 2023, respectively. Also excludes the related changes in amortization of the deferred gain, which were $106 million, $268 million and $(83) million over those same periods.

Net Loss Development – 2025

In the year ended December 31, 2025, we recognized favorable prior year loss reserve development of $548 million, primarily driven by:

North America Commercial

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

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

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

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

•Benefit from the amortization of the deferred gain on the adverse development cover.

International Commercial

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

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

For additional information on prior year development by line of business, see Note 13 to the Consolidated Financial Statements. For information regarding actuarial methods employed for major classes of business, see Critical Accounting Estimates.

Net Loss Development – 2024

In the year ended December 31, 2024, we recognized favorable prior year loss reserve development of $367 million, primarily driven by:

North America Commercial

•Favorable development on our U.S. Workers' Compensation reflecting continued favorable loss experience.

•Adverse development on U.S. Excess Casualty driven by a large settlement of a legacy mass tort claim with the gross loss in accident years covered under the Adverse Development Cover and increased reserves related to claims emergence.

•Adverse development on U.S. Property and Special Risks reflecting development on prior year catastrophes offset by favorable loss experience in Retail and Wholesale Property.

•Favorable development on U.S. Financial Lines, reflecting favorable experience across most reserving classes, offset by unfavorable development in M&A and High Excess classes.

•Favorable development on U.S. Other Casualty, reflecting favorability across numerous Casualty reserving classes, partially offset by unfavorable development on Commercial Auto and Wholesale Primary General Liability.

•Amortization benefit related to the deferred gain on the adverse development cover.

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International Commercial

•Favorable development on Other Product Lines, primarily driven by Global Specialty which saw favorable development across multiple lines.

•Adverse development on UK/Europe Casualty and Financial Lines driven by unfavorable development in UK Financial Lines partially offset by favorable development in EMEA Financial Lines, and unfavorable development in European Excess Casualty driven by claim-specific emergence on accident year 2016.

•Favorable development on UK/Europe Property and Special Risks reflecting favorable development across most segments and geographies.

Global Personal

•Favorable development on UK/Europe and Japan Personal Insurance primarily driven by Japan A&H and Auto, partially offset by unfavorable development in Personal Auto in EMEA.

•Favorable development in U.S. Personal Insurance and Other Product Lines due to favorable development on prior year catastrophes across several events, primarily in the 2019-2023 accident years.

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.

For information regarding the 2023 net loss development, see Part II, Item 7. MD&A – Insurance Reserves – Loss Reserves in the 2024 Annual Report.

Significant Reinsurance Agreements

NICO

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

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

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)

December 31, 2025

December 31, 2024

December 31, 2023

Gross Covered Losses

Covered reserves before discount

$

8,907 

$

9,823 

$

10,849 

Inception to date losses paid

32,588 

31,545 

30,157 

Attachment point

(25,000)

(25,000)

(25,000)

Covered losses above attachment point

$

16,495 

$

16,368 

$

16,006 

Deferred Gain Development

Covered losses above attachment ceded to NICO (80%)

$

13,196 

$

13,094 

$

12,805 

Consideration paid including interest

(10,188)

(10,188)

(10,188)

Pre-tax deferred gain before discount and amortization

3,008 

2,906 

2,617 

Discount on ceded losses(a)

(891)

(936)

(1,104)

Pre-tax deferred gain before amortization

2,117 

1,970 

1,513 

Inception to date amortization of deferred gain at inception

(1,688)

(1,564)

(1,428)

Inception to date amortization attributed to changes in deferred gain(b)

(156)

(122)

64 

Deferred gain liability reflected in AIG's balance sheet

$

273 

$

284 

$

149 

(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.

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

Years Ended December 31,

(in millions)

2025

2024

2023

Balance at beginning of year, net of discount

$

284 

$

149 

$

205 

(Favorable) unfavorable prior year reserve development ceded to NICO(a)

102 

289 

(158)

Amortization attributed to deferred gain at inception(b)

(124)

(136)

(164)

Amortization attributed to changes in deferred gain(c)

(34)

(186)

116 

Changes in discount on ceded loss reserves

45 

168 

150 

Balance at end of year, net of discount

$

273 

$

284 

$

149 

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

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

(c)Excluded from APTI.

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

Fortitude Re

Fortitude Re was established during the first quarter of 2018 in a series of reinsurance transactions related to our run-off operations. Those reinsurance transactions were designed to consolidate most of our insurance run-off lines into a single legal entity. As of December 31, 2025, $3.2 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

OVERVIEW

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. These 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 Enterprise Risk Management – Liquidity Risk.

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.

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.

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LIQUIDITY AND CAPITAL RESOURCES HIGHLIGHTS

Sources

Liquidity to AIG Parent from Subsidiaries

During the year ended December 31, 2025, our General Insurance companies distributed dividends of $3.0 billion to AIG Parent or applicable intermediate holding companies.

Sales of Corebridge Shares by AIG

In May 2025, we sold approximately 13 million shares of Corebridge common stock at a per share purchase price of $32.15. The aggregate proceeds to AIG Parent were approximately $430 million.

In August and September 2025, we sold an aggregate of approximately 31.2 million shares of Corebridge common stock at a public offering price of $33.65 per share, which included 30 million shares initially offered and the partial exercise by the underwriters of their option to purchase additional shares. The aggregate proceeds to AIG Parent were approximately $1.0 billion.

In November 2025, we sold 32.6 million shares of Corebridge common stock at a public offering price of $31.10 per share. The aggregate proceeds to AIG Parent were approximately $1.0 billion. Corebridge purchased approximately $500 million of common stock from the underwriter at the same per share price paid by the underwriter to us, net of underwriting discounts and commissions.

Debt Issuance

In May 2025, AIG issued $625 million aggregate principal amount of 4.850% Notes Due 2030 and $625 million aggregate principal amount of 5.450% Notes Due 2035.

Uses

General Borrowings

During the year ended December 31, 2025, $1.1 billion of debt categorized as general borrowings matured, was repaid and/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.

•Repurchase, through cash tender offers, of approximately $457 million aggregate principal amount of certain notes and debentures issued by AIG for an aggregate purchase price of approximately $448 million.

•Redemption of approximately $236 million aggregate principal amount of our 3.900% Notes Due 2026 for a redemption price of 100 percent of the principal amount, plus accrued and unpaid interest.

•Repayment of $146 million aggregate principal amount of our 2.500% Notes Due June 30, 2025.

We made interest payments on our general borrowings totaling $382 million during the year ended December 31, 2025.

Dividends

We made cash dividend payments in the amount of $0.45 per share on AIG Common Stock for each of the three month periods ended December 31, 2025, September 30, 2025 and June 30, 2025 (an increase of 12.5 percent from prior dividend payments), and $0.40 per share for the three month period ended March 31, 2025, totaling $976 million in the aggregate.

Repurchases of Common Stock

During the year ended December 31, 2025, AIG Parent repurchased approximately 73 million shares of AIG Common Stock, for an aggregate purchase price of approximately $5.8 billion. Pursuant to a Securities Exchange Act of 1934 (the Exchange Act) Rule 10b5-1 repurchase plan, from January 1, 2026 to February 6, 2026, AIG Parent repurchased approximately 2 million shares of AIG Common Stock for an aggregate purchase price of approximately $125 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 $389 million and $858 million in the years ended December 31, 2025 and 2024, respectively. Excluding interest payments, AIG had operating cash inflows of $3.7 billion and $4.1 billion in the years ended December 31, 2025 and 2024, respectively, including outflows of $104 million from discontinued operations in 2024.

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Investing Cash Flow Activities

Net cash provided by investing activities in the year ended December 31, 2025 was $3.2 billion compared to net cash provided by investing activities of $1.7 billion, including $4.2 billion used in discontinued operations, in 2024.

Financing Cash Flow Activities

Net cash used in financing activities in the year ended December 31, 2025 totaled $6.5 billion, reflecting:

•$976 million to pay dividends of $0.45 per share in each of the three month periods ended December 31, 2025, September 30, 2025 and June 30, 2025, and $0.40 per share for the three month period ended March 31, 2025 on AIG Common Stock;

•$5.8 billion to repurchase approximately 73 million shares of AIG Common Stock; and

•$142 million in net inflows from the issuance and repayment of long-term debt.

Net cash used in financing activities in the year ended December 31, 2024 totaled $5.1 billion reflecting:

•$1.0 billion to pay dividends of $0.40 per share in each of the three month periods ended December 31, 2024, September 30, 2024 and June 30, 2024, and $0.36 per share for the three month period ended March 31, 2024 on AIG Common Stock;

•$22 million to pay a first quarter dividend of $365.625 per share on AIG’s Series A 5.85% Non-Cumulative Perpetual Preferred Stock and redemption premiums;

•$6.7 billion to repurchase approximately 90 million shares of AIG Common Stock;

•$1.4 billion in net outflows from the issuance and repayment of long-term debt; and

•$3.9 billion in net inflows from discontinued operations.

For information regarding cash flow activities for the year ended December 31, 2023, see Part II, Item 7. MD&A – Liquidity and Capital Resources – Analysis of Sources and Uses of Cash of our 2024 Annual Report.

LIQUIDITY AND CAPITAL RESOURCES OF AIG PARENT AND SUBSIDIARIES

AIG Parent

As of December 31, 2025 and 2024, respectively, AIG Parent had approximately $9.3 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.

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.

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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. Letters of credit issued in support of our insurance companies totaled approximately $2.3 billion at December 31, 2025.

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 December 31, 2025, a total of $3.0 billion remained available under the Facility.

CONTRACTUAL OBLIGATIONS

The following table summarizes material contractual obligations in total, and by remaining maturity:

December 31, 2025

Payments due by Period

(in millions)

Total Payments

2026

2027 - 2028

Thereafter

Loss reserves(a)

$

72,729 

$

20,067 

$

20,721 

$

31,941 

Long-term debt(b)

9,035 

36 

1,655 

7,344 

Interest payments on long-term debt

4,863 

396 

704 

3,763 

Total

$

86,627 

$

20,499 

$

23,080 

$

43,048 

(a)Represents loss reserves, undiscounted and gross of reinsurance.

(b)Does not reflect $156 million of debt of 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.

Loss Reserves

Loss reserves represent our General Insurance companies' estimates of future loss and loss adjustment expense payments based on historical loss development payment patterns. The amounts presented in the above table are undiscounted and therefore exceed the liability for unpaid losses and loss adjustment expenses, including allowance for credit losses, as presented on the Consolidated Balance Sheets. Due to the significance of the assumptions used, the payments by period presented above could be materially different from actual required payments. We believe that our General Insurance companies maintain adequate financial resources to meet the actual required payments under these obligations.

For additional information on loss reserves, see Critical Accounting Estimates – Loss Reserves and Note 13 to the Consolidated Financial Statements.

Long-Term Debt and Interest Payments on Long-Term Debt

The amounts presented in the above table represent AIG's total long-term debt outstanding and associated future interest payments due on such debt.

For additional information on outstanding debt, see – Debt.

OFF-BALANCE SHEET ARRANGEMENTS AND COMMERCIAL COMMITMENTS

In the normal course of business, AIG and our subsidiaries enter into commitments under which we may be required to make payments in the future on a contingent basis.

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The following table summarizes Off-Balance Sheet Arrangements and Commercial Commitments in total, and by remaining maturity:

December 31, 2025

Total Amounts

Committed

(in millions)

2026

2027 - 2028

Thereafter

Commitments:

Investment commitments

$

1,466 

$

992 

$

350 

$

124 

Commitments to extend credit

120 

75 

22 

23 

Letters of credit

231 

130 

100 

1 

Total(a)(b)

$

1,817 

$

1,197 

$

472 

$

148 

(a)Excludes guarantees and other support arrangements between AIG consolidated entities.

(b)Excludes commitments with respect to pension plans. The annual pension contribution for 2026 is expected to be approximately $54 million.

Investment commitments

We enter into investment commitments in the normal course of business that are aligned with and support our investment strategies. These represent commitments to investment in private equity funds. The commitments to invest are called at the discretion of each fund, as needed for funding new investments or expenses of the fund, the timing of which is estimated based on the expected life cycle of the related funds, consistent with past trends of requirements for funding. These commitments are primarily made by insurance subsidiaries of the Company.

We also enter into arrangements with variable interest entities (VIEs) and consolidate a VIE when we are the primary beneficiary of the entity.

For additional information on investment commitments and VIEs, see Note 10 to the Consolidated Financial Statements.

Commitments to extend credit

As part of our normal course of business lending operations, we enter into commitments to fund mortgage loans at certain interest rates and various other terms, within a stated period of time. Such commitments are legally binding and generally made by insurance subsidiaries of the Company.

Letters of credit

AIG is party to several letter of credit agreements with various financial institutions, which issue letters of credit from time to time for the benefit of third parties in support of our businesses. These letters of credit are subject to reimbursement by AIG in the event of a drawdown.

Indemnification agreements

For information regarding our indemnification agreements, see Note 15 to the Consolidated Financial Statements.

DEBT

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:

Year Ended December 31, 2025

Balance,

Beginning

of Year

Issuances

Maturities

and

Repayments

Effect of

Foreign

Exchange

Other

Changes

Balance,

End of

Year

(in millions)

General borrowings:

Notes and bonds payable

$

7,885 

$

1,241 

$

(718)

$

116 

$

5 

$

8,529 

Junior subordinated debt

602 

— 

(122)

— 

1 

481 

AIG Japan Holdings Kabushiki Kaisha

239 

— 

(247)

8 

— 

— 

Total general borrowings

8,726 

1,241 

(1,087)

124 

6 

9,010 

Borrowings supported by assets

37 

— 

(12)

— 

— 

25 

Other subsidiaries' notes, bonds, loans and mortgages payable - not guaranteed by AIG

1 

— 

— 

— 

(1)

— 

Total long-term debt

$

8,764 

$

1,241 

$

(1,099)

$

124 

$

5 

$

9,035 

Debt of consolidated investment entities - not guaranteed by AIG(a)

$

158 

$

— 

$

(2)

$

— 

$

— 

$

156 

(a)Includes debt of consolidated investment entities related to real estate investments of $156 million at December 31, 2025 and $158 million at December 31, 2024.

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Debt Maturities

The following table summarizes maturing long-term debt at December 31, 2025 of AIG for the next four quarters:

First

Quarter

Second

Quarter

Third

Quarter

Fourth

Quarter

(in millions)

2026

2026

2026

2026

Total

General borrowings

$

— 

$

— 

$

— 

$

29 

$

29 

Borrowings supported by assets

7 

— 

— 

— 

7 

Total

$

7 

$

— 

$

— 

$

29 

$

36 

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.

A.M. Best

S&P

Fitch

Moody’s

National Union Fire Insurance Company of Pittsburgh, Pa.

A

AA-

AA-

A1

Lexington Insurance Company

A

AA-

AA-

A1

American Home Assurance Company

A

AA-

AA-

A1

AIG Europe S.A.

NR

AA-

NR

A1

American International Group UK Limited

A

AA-

NR

A1

AIG General Insurance Company, Ltd.

NR

AA-

NR

NR

In May 2025, S&P upgraded the financial strength ratings of AIG’s significant insurance subsidiaries to AA- from A+.

In June 2025, Moody’s upgraded the financial strength ratings of AIG’s insurance subsidiaries to A1 from A2.

In November 2025, Fitch upgraded the financial strength ratings of AIG’s insurance subsidiaries to AA- from A+.

In November 2025, A.M. Best affirmed the financial strength ratings of AIG’s insurance subsidiaries at A and revised the outlook to positive from stable.

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.

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 Debt Rating

Moody's

S&P

Moody's(a)

S&P(b)

Fitch(c)

American International Group, Inc.

P-2 (2nd of 4)

A-2 (2nd of 5)

Baa 1 (4th of 9) / Stable

A- (3rd of 9) /

Stable

A- (3rd of 9) /

Stable

(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.

(c)Fitch ratings may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.

In May 2025, S&P upgraded the Senior Debt Rating of AIG Parent to A- from BBB+ and revised the outlook to stable from positive.

In June 2025, Moody’s upgraded the Senior Debt Rating of AIG Parent to Baa1 from Baa2 and revised the outlook to stable from positive.

In November 2025, Fitch upgraded the Senior Debt Rating of AIG Parent to A- from BBB+, and maintained the outlook as stable.

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.

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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.

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” and Note 11 to the 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.

DIVIDENDS

On February 10, 2026, our Board of Directors (the Board) declared a cash dividend on AIG Common Stock of $0.45 per share, payable on March 30, 2026 to shareholders of record on March 16, 2026.

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 16 to the 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 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 year ended December 31, 2025, AIG Parent repurchased approximately 73 million shares of AIG Common Stock for an aggregate purchase price of $5.8 billion. Pursuant to an Exchange Act Rule 10b5-1 repurchase plan, from January 1, 2026 to February 6, 2026, AIG Parent repurchased approximately 2 million shares of AIG Common Stock for an aggregate purchase price of approximately $125 million. As of February 6, 2026, $3.8 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 16 to the 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 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.

AIG employs a Three Lines model. AIG’s business leaders assume full accountability for the risks and controls in their segments and functions, and ERM and other second line functions have review, challenge and oversight function. The third line consists of our Internal Audit Group that provides independent assurance to AIG’s Board of Directors.

Our Board of Directors oversees the management of risk through its Risk Committee and Audit Committee. Our Chief Risk Officer (CRO), a member of the Executive Leadership team, reports to both the Risk Committee and our Chairman and Chief Executive Officer.

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The AIG CRO chairs the Group Risk Committee (GRC), the senior management group responsible for assessing all significant risks on a global basis. The GRC is supported by management committees and Legal Entity Risk Committees.

The ERM department strives to nurture a healthy risk culture and establish sound governance. Among other things, the ERM department is tasked with:

•AIG's Risk Appetite Framework and the establishment and maintenance of tolerances and limits on material risks to meet AIG's objectives.

•Risk identification and measurement through multiple processes at the business entity and corporate level focused on capturing our material risks.

AIG major risk categories include credit risk, market risk, liquidity risk, operational risk, technology risk, business and strategic risk, and insurance risk. Emerging risks are regularly monitored.

CREDIT RISK

Credit risk is defined as the risk that our customers or counterparties are unable or unwilling to repay their contractual obligations when they become due. Credit risk may also result from a downgrade of a counterparty’s credit ratings or a widening of its credit spreads.

Direct and indirect credit exposures may arise from, but are not limited to, fixed income investments, equity securities, deposits, commercial paper investments, securities purchased under agreements to resell and repurchase agreements, corporate and consumer loans, leases, reinsurance and retrocessional insurance recoverables, counterparty risk arising from derivatives activities, collateral extended to counterparties, insurance risk cessions to third parties, financial guarantees, letters of credit, and certain General Insurance businesses. AIG's credit risk management framework defines credit risk processes to identify, evaluate, risk rate, measure, manage and govern credit risk across the enterprise and to ensure the consistency of those processes.

We monitor and control our company-wide credit risk concentrations and attempt to avoid unwanted or excessive risk accumulations, whether funded or unfunded. To minimize the level of credit risk in some circumstances, we may require mitigants, such as parental or third-party guarantees, simultaneous payment provisions or collateral, including commercial bank-issued letters of credit, funds withheld accounts and cash or securities held in trust collateral accounts.

For additional information on our credit concentrations and credit exposures, see Investments – Investment Strategies – Available-for-Sale Investments.

Derivative Transactions

We utilize derivatives principally to enable us to hedge exposure associated with changes in levels of interest rates, currencies, credit, commodities, equity prices and other risks. Credit risk associated with derivative counterparties exists for a derivative contract when that contract has a positive fair value to us. All derivative transactions must be transacted within counterparty limits that have been approved by ERM. We evaluate counterparty credit quality via an internal analysis that is consistent with our organizational policies and, where necessary, we require credit enhancements for certain transactions and enter into offsetting and netting arrangements.

For additional information related to derivative transactions, see Note 11 to the Consolidated Financial Statements.

MARKET RISK

Market risk is defined as the risk of adverse impact due to systemic movements in one or more of the following market risk drivers: interest rates, credit spreads, foreign exchange, equity and commodity prices, residential and commercial real estate values, inflation, and their respective levels of uncertainty. It can also be brought on by political turmoil, natural disasters, and terrorist attacks. We are exposed to market risks primarily within our insurance and capital markets activities, on both the asset and the liability sides of our balance sheet through on- and off-balance sheet exposures.

Market risk is overseen at the corporate level within ERM through the CRO. Market risk is managed by our finance, treasury and investment management corporate functions, collectively, and in partnership with ERM. The scope and magnitude of our market risk exposures are monitored through GAAP and statutory accounting frameworks as well as through economic analysis consistent with our risk appetite statement. This process aims to establish a comprehensive coverage of potential implications from adverse market risk developments. We use a number of approaches to measure market risk exposure including sensitivity analysis, scenario analysis and stress testing.

Impact of Changes in the Interest Rate Environment

Certain global benchmark interest rates continued to fluctuate in 2025 as markets reacted to change in inflation trends, geopolitical risk, trade and tariff uncertainties and the rate 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 and manage duration and interest rate risk.

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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.

Impact of Currency Volatility

As a global company, AIG conducts business in multiple currencies. In general, we aim to match liabilities with assets of the same currency. For regulated insurance subsidiaries, we also try to mitigate statutory surplus or capital injection risk and capital surplus volatility in accordance with the entity’s statutory accounting framework. This often requires us to allocate capital in the liability’s currency mix or the functional currency of the entity. Derivatives may also be used.

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. 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 financial statement line item comparability.

Market Risk Sensitivities

Most of our fixed income portfolio is reported as available-for-sale. Therefore, fair value changes have a direct impact on Accumulated other comprehensive income (loss) (AOCI), but do not impact our net investment income revenue unless the assets are sold. Our short-term and long-term debt is reported at amortized cost and thus changes in interest rates do not impact the debt values reported on our financial statements. Their fair value, however, is sensitive to interest rates.

The following table provides estimates of sensitivity to changes in yield curves, equity prices and foreign exchange (FX) rates on our financial instruments. We aim to manage interest rate exposure of the investment portfolio such that valuation changes from interest rates are partially offset by changes in the economic value of insurance reserves. These exposures are regularly reviewed as part of AIG’s governance structure and limits are set accordingly. The table excludes $2.9 billion of interest rate sensitive assets supporting the Fortitude Re funds withheld arrangements as the contractual returns related to the assets are transferred to Fortitude Re, as well as $3.0 billion of related funds withheld payables. This sensitivity table does not reflect potential management actions that could be taken to mitigate losses, and actual results could differ from those illustrated.

Balance Sheet Exposure

Economic Effect

(dollars in millions)

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Sensitivity factor

100 bps parallel increase in all yield curves

Interest rate sensitive assets:

Fixed maturity securities

$

68,005 

$

61,408 

$

(2,459)

$

(2,248)

Mortgage and other loans receivable(a)

3,748 

3,057 

(45)

(61)

Total interest rate sensitive assets(b)

$

71,753 

$

64,465 

$

(2,504)

$

(2,309)

Interest rate sensitive liabilities:

Long-term debt(a)(c)

(9,035)

(8,525)

634 

628 

Total interest rate sensitive liabilities

$

(9,035)

$

(8,525)

$

634 

$

628 

Sensitivity factor

20% decline in equity prices and alternative investments

Equity and alternative investments:

Real estate investments

$

255 

$

259 

$

(51)

$

(52)

Private equity

3,026 

3,586 

(605)

(717)

Hedge funds

175 

187 

(35)

(37)

Common equity

502 

704 

(100)

(141)

Other investments

3,240 

5,796 

(648)

(1,159)

Total equity and alternative investments

$

7,198 

$

10,532 

$

(1,439)

$

(2,106)

Sensitivity factor

10% depreciation of all FX rates against the U.S. dollar

Foreign currency-denominated net asset position:

British pound

$

1,105 

$

1,233 

$

(110)

$

(123)

Japan Yen

787 

627 

(79)

(63)

Euro

1,174 

1,165 

(117)

(116)

All other foreign currencies

2,605 

2,941 

(260)

(294)

Total foreign currency-denominated net asset position(d)

$

5,671 

$

5,966 

$

(566)

$

(596)

(a)The economic effect is the difference between the estimated fair value with and without a 100 bps parallel increase in all yield curves. The estimated fair values for Mortgage and other loans receivable and Long-term debt, excluding assets supporting Fortitude Re funds withheld assets, were $3.8 billion and $8.7 billion at December 31, 2025, respectively. The estimated fair values for Mortgage and other loans receivable and Long-term debt, excluding assets supporting Fortitude Re funds withheld assets, were $2.8 billion and $8.2 billion at December 31, 2024, respectively.

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(b)At December 31, 2025, $60 million of Fixed maturity securities and $54 million of Mortgage and other loans receivable were excluded due to modeling limitations. At December 31, 2024, this amount was $568 million for Fixed maturity securities and $492 million for Mortgage and other loans receivable.

(c)At December 31, 2024 the analysis excluded $239 million of AIG Japan Holdings Kabushiki Kaisha loans. The loans matured in 2025 and were not renewed.

(d)Most of the foreign currency exposure is reported on a one quarter lag. Foreign currency-denominated net asset position reflects our aggregated non-U.S. dollar assets less our aggregated non-U.S. dollar liabilities on a GAAP basis.

Interest rate sensitivity is defined as the change in value with respect to a 100 basis point parallel shift up in the interest rate environment, calculated as: scenario value minus base value, where base value is the value under the yield curves as of the period end and scenario value is the value reflecting a 100 basis point parallel increase in all yield curves. The hypothetical change is assumed to be instantaneous. This therefore also assumes that the interest rate risk profile of the company remains constant and doesn't reflect the impact of any potential portfolio duration repositioning while interest rates rise.

LIQUIDITY RISK

Liquidity risk is defined as the risk that our financial condition will be adversely affected by the inability or perceived inability to meet our short-term cash, collateral or other financial obligations as they come due.

AIG and its legal entities seek to maintain sufficient liquidity both in the normal course of business and under defined liquidity stress scenarios to ensure that sufficient cash will be available to meet the obligations as they come due.

Liquidity risk drivers include market/monetization risk, cash flow mismatch risk, event funding risk, and financing risk.

Liquidity risk is monitored through comprehensive cash flow projections over varying time horizons that incorporate all relevant liquidity sources and uses and include known and likely cash inflows and outflows. We use several approaches to measure liquidity risk exposure including coverage ratios, cash flow forecasts and stress testing.

OPERATIONAL RISK

Operational risk is defined as the risk of loss, or other adverse consequences, resulting from inadequate or failed internal processes, people, systems, or from external events. Operational risk includes legal, regulatory, compliance, third-party and business continuity risks, but excludes business and strategy risks.

Operational risk is inherent in our business entities and can have many impacts, including but not limited to, unexpected economic losses or gains, reputational harm, regulatory action from supervisory agencies and operational and business disruptions, and/or damage to customer relationships.

ERM, working together with other control and assurance functions and first line risk control owners through the risk and control framework, provides an independent view of operational risks for each of the business areas.

TECHNOLOGY RISK

Technology risk is defined as the risk that technology fails to perform as intended, resulting in missed enterprise objectives. It is associated with the ownership, involvement and adoption of Information Technology within an enterprise. It includes vulnerabilities associated with information technology, operational technology, and communications technology.

AIG strives to reduce the probability and impact of technology risks as much as reasonably practicable while maintaining the ability to conduct business.

Cybersecurity Risk

AIG, like other global companies, continues to witness the increased sophistication and activities of unauthorized parties attempting cyber and other computer-related penetrations such as “denial of service” attacks, phishing, untargeted but sophisticated and automated attacks, and other disruptive software in an effort to compromise systems, networks and obtain sensitive information.

ERM supports the risk management practices of Information Technology, the Information Security Office and the business units and functions that form the lines of defense against the cybersecurity risks that we face.

For additional information regarding the privacy data protection and cybersecurity regulations to which we are subject, see Part I, Item 1. Business – Regulation – Privacy, Data Protection, Cybersecurity and Artificial Intelligence Requirements. For additional discussion of cybersecurity risks, see Part I, Item 1A. Risk Factors – Business and Operations. For additional information regarding our cybersecurity risk management as well as strategy and governance, please see Part I, Item 1C. Cybersecurity.

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BUSINESS AND STRATEGIC RISK

Business and strategy risk encompasses those risks that stem from strategy risk, risk of legal and regulatory actions, risk of rating agency actions, and reputational risk. The major AIG strategy risks capture risk of losses due to the inability to implement appropriate business plans and strategies, make decisions, allocate resources or adapt to changes in the business environment. These risks include, but are not limited to pricing, distribution channels, acquisitions, and dispositions.

AIG monitors and reports on the above-mentioned risks through ongoing risk reporting to various committees, monitoring of capital positions, regular interaction with AIG businesses and functions, regulators, and rating agencies. On a regular basis, ERM performs Second Line Review and Challenge on many of these processes and approaches. The Internal Audit Group performs audits on key processes and provides continuous monitoring on remediation of audit findings. Processes and controls are designed to respond in an effective and consistent way.

INSURANCE RISK

Insurance risk is defined as the risk of actual claims experience and/or policyholder behavior being materially different than expected at the inception of an insurance contract or at the latest valuation. Uncertainties related to insurance risk can lead to deviations in magnitude and/or timing of prospective cash flows associated with our liabilities compared to expectations.

We manage our insurance business risk oversight activities through our insurance operations, which aims to achieve an acceptable risk-adjusted return on equity. We remain disciplined in risk selection, premium adequacy, and appropriate terms and conditions to cover the risk accepted.

We operate our insurance businesses on a global basis, and we are exposed to a wide variety of risks with different time horizons. We manage these risks throughout the organization through a number of processes and procedures, including but not limited to, pricing and risk selection models, pricing approval processes, pre-launch approval of product design, development, and distribution, underwriting approval processes and authorities, modeling and reporting of aggregations and limit concentrations at multiple levels, model risk management framework and validation processes, risk transfer tools, review and challenge of reserves, actuarial profitability and reserve reviews, management of the relationship between assets and liabilities, and experience monitoring and assumption updates.

Risks primarily include loss reserves, underwriting, catastrophe exposure, single risk loss exposure, and reinsurance. The potential inadequacy of the liabilities we establish for unpaid losses and loss adjustment expenses is a key risk faced by the General Insurance companies, which we manage through internal controls and oversight of the loss reserve setting process, as well as reviews by external experts. For further information, see Critical Accounting Estimates – Loss Reserves.

The potential inadequacy of premiums charged for future risk periods on risks underwritten in our portfolios can impact the General Insurance companies’ ability to achieve an underwriting profit. We develop pricing based on our estimates of losses and expenses, but factors such as market pressures and the inherent uncertainty and complexity in estimating losses may result in premiums that are inadequate to generate underwriting profit.

Our business is exposed to various catastrophic events, including natural disasters, man-made catastrophes, or pandemic disease, in which multiple losses can occur and affect multiple lines of business in any calendar year, adversely affecting our business and operating results. Concentration of exposure in certain industries or geographies may cause us to suffer disproportionate losses.

Our business is exposed to loss events, such as fires or earthquakes, that have the potential to generate losses from a single insured client. The net risk to us is managed to acceptable limits established by the Chief Underwriting Officer through a combination of internal underwriting standards and external reinsurance.

Since we use reinsurance to limit our losses, we are exposed to risks associated with reinsurance including the recoverability of expected payments from reinsurers due to either an inability or unwillingness to pay, contracts that do not respond properly to the event or actual reinsurance coverage that is different than anticipated, which is monitored through our credit risk management framework.

We closely manage insurance risk by monitoring and controlling the nature and geographic location of the risks in each underwritten line of business, concentrations in industries, the terms and conditions of the underwriting and the premiums we charge for taking on the risk. We analyze concentrations of risks using various modeling techniques, including both probability distributions (stochastic) and/or single-point estimates (deterministic) approaches.

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Risk Measurement, Monitoring and Limits

We use several approaches to measure our insurance risk exposure including sensitivity and scenario analyses, stochastic methods, and experience studies. Additionally, there are risk-specific assessment tools in place to appropriately manage the variety of insurance risks to which we are exposed.

Natural Catastrophe Risk

We manage catastrophe exposure with multiple approaches such as setting risk limits based on aggregate Probable Maximum Loss (PML) modeling, monitoring overall exposures and risk accumulations, modifying our gross underwriting standards, and purchasing catastrophe reinsurance through both the traditional reinsurance and capital markets in addition to other reinsurance protections.

We use third-party catastrophe risk models and other tools to evaluate and simulate frequency and severity of catastrophic events and associated losses to our portfolios of exposures with adjustments applied to modeled losses to account for loss adjustment expenses, model biases, data quality and non-modeled risks.

We recognize that climate change has implications for insurance industry exposure to natural catastrophe risk. With multiple levels of risk management processes in place, we actively analyze the latest climate science and policies to anticipate potential changes to our risk profile, pricing models and strategic planning and will continue to adapt to and evolve with the developing risk exposures attributed to climate change. In addition, we provide insurance products and services to help our clients be proactive against the threat of climate change.

The table below details our modeled estimates of PML, net of reinsurance, on an annual aggregate basis. The 1-in-100 and 1-in-250 PMLs are the annual aggregate probable maximum losses with probability of 1 percent and 0.4 percent in a year, respectively. Estimates as of December 31, 2025 reflect our in-force portfolio for exposures as of July 1, 2025, and all inuring reinsurance covers as of December 31, 2025, except for the catastrophe reinsurance programs, which are as of January 1, 2026 and reflected as of such date.

The following table presents an overview of annual aggregate modeled losses for world-wide all perils and exposures arising from our largest primarily modeled perils:

At December 31, 2025

Net of

Reinsurance

Net of Reinsurance,

After Tax(f)

Percent of Total

Shareholders' Equity

Percent of Total

Shareholders' Equity

Excluding AOCI

(in millions)

Exposures:

World-wide all peril (1-in-250)(a)

$

2,500 

$

1,975 

4.8 

%

4.3 

%

U.S. Hurricane (1-in-100)(b)

938 

741 

1.8 

1.6 

U.S. Earthquake (1-in-250)(c)

901 

712 

1.7 

1.5 

Japanese Typhoon (1-in-100)(d)

283 

224 

0.5 

0.5 

Japanese Earthquake (1-in-250)(e)

251 

198 

0.5 

0.4 

(a)The world-wide all peril loss estimate includes wildfire exposure.

(b)The U.S. hurricane loss estimate includes losses to Commercial and Personal Property from hurricane hazards of wind and storm surge.

(c)The U.S. earthquake loss estimates represent exposure to Commercial and Personal Property, U.S. Workers’ Compensation and A&H lines of business.

(d)Japan Typhoon loss estimate represents exposure to Commercial and Personal Property.

(e)Japan Earthquake loss estimate represents exposure to Commercial and Personal Property and A&H lines of business.

(f)Taxed at the statutory tax rate of 21 percent for both the U.S. and Japanese modeled losses. The majority of Japan exposures are ceded to our U.S. Pool.

AIG, along with other property casualty insurance and reinsurance companies, uses industry-recognized catastrophe models and applies proprietary modeling processes and assumptions to arrive at loss estimates. The use of different methodologies and assumptions could materially change the projected losses, and our modeled losses may not be comparable to estimates made by other companies.

Also, the modeled results are based on the assumption that all reinsurers fulfill their obligations to us under the terms of the reinsurance arrangements. These estimates are inherently uncertain and may not accurately reflect our net exposure, inclusive of credit risk, to these events.

Our 2026 property catastrophe reinsurance program is a worldwide program providing both aggregate and per occurrence protection, with differing per occurrence and aggregate retentions for North America, Japan, and rest of world. In 2026, for North America Commercial portfolio, we maintained the $500 million retention and increased the vertical limit purchased by $500 million. For the North America Personal Lines portfolio, it continues to be covered in the aggregate cover, and we maintained the $200 million retention. For the International portfolio, we maintained the $200 million retention for Japan and increased our retention to $150 million for rest of world.

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We have also purchased property per risk covers that provide protection against large losses globally, which include those emanating from non-critical catastrophe events (all events except for named windstorm and earthquake) globally as well as critical catastrophe events (named windstorm and earthquake) outside North America.

Actual results in any period are likely to vary, perhaps materially, from the modeled scenarios. The occurrence of one or more severe events could have a material adverse effect on our financial condition, results of operations and liquidity. For additional information, see also Part 1, Item 1A. Risk Factors – Reserves and Exposures.

Terrorism Risk

We actively monitor terrorism risk and manage exposures to losses from terrorist attacks. Terrorism risks are modeled using a third-party vendor model for various terrorism attack modes and scenarios. Adjustments are made to account for vendor model gaps and the nature of the General Insurance companies’ exposures.

Our largest terrorism concentrations are in New York City, and estimated losses are largely driven by the Property and Workers’ Compensation lines of business. Our exposure to terrorism risk in the U.S. is mitigated by the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) in addition to limited private reinsurance protections. TRIPRA covers certified terrorist attacks within the U.S. or U.S. missions and against certain U.S. carriers or vessels and excludes certain lines of business as specified by applicable law.

We offer terrorism coverage in many other countries through various insurance products and participate in country terrorism pools when applicable. International terrorism exposure is estimated using scenario-based modeling and exposure concentration is monitored routinely. Targeted reinsurance purchases are made for some lines of business to cover potential losses due to terrorist attacks. We also rely on the government-sponsored and government-arranged terrorism reinsurance programs, including pools, in force in applicable non-U.S. jurisdictions.

Reinsurance Activities

We purchase reinsurance for our insurance and reinsurance operations. Reinsurance facilitates insurance risk management (retention, volatility, concentrations) and capital planning. We may purchase reinsurance on a pooled basis.

Reinsurance is used primarily to manage overall capital adequacy and mitigate the insurance loss exposure related to certain events, such as natural and man-made catastrophes, death events, or single policy level events. Our subsidiaries operate worldwide primarily by underwriting and accepting risks for their direct account on a gross basis and reinsuring a portion of the exposure on either an individual risk or an aggregate basis to the extent those risks exceed the desired retention level. In addition, as a condition of certain direct underwriting transactions, we may be required by clients, agents or regulation to cede all or a portion of risks to specified reinsurance entities, such as captives, other insurers, local reinsurers and compulsory pools.

For additional information on reinsurance recoverable, see Critical Accounting Estimates – Reinsurance Assets.

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Glossary

Glossary

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.

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 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.

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.

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.

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Glossary

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.

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. 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 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 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 provides 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.

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 Consolidated Balance Sheets.

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Acronyms

Acronyms

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