Item 8. Report of Independent Registered Public Accounting Firm

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Valuation of Insurance Liabilities - Unpaid Losses and Loss Adjustment Expenses (Loss Reserves), Net of Reinsurance

As described in Note 13 to the consolidated financial statements, 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. As of December 31, 2025, the Company’s net liability for unpaid losses and loss adjustment expenses was $41.8 billion. As disclosed by management, the estimate of the loss reserves relies on several key judgments, including (i) actuarial methods, (ii) relative weights given to these methods by product line, (iii) underlying actuarial assumptions, and (iv) groupings of similar product lines. Actuarial assumptions include (i) expected loss ratios and (ii) loss development factors. During management’s actuarial reviews, various factors are considered, including economic conditions; the legal, regulatory, judicial and social environment; medical cost trends; policy pricing, terms and conditions; changes in the claims handling process; and the impact of reinsurance. As described in Note 13 to the consolidated financial statements, management uses a combination of actuarial methods to project ultimate losses for both long-tail and short-tail exposures.

The principal considerations for our determination that performing procedures relating to the valuation of insurance liabilities - loss reserves, net of reinsurance is a critical audit matter are (i) the significant judgment by management when developing their estimate, which in turn led to a high degree of auditor subjectivity and judgment in performing the audit procedures related to the estimate, (ii) the significant audit effort and judgment in evaluating the audit evidence related to the actuarial methods, weights given to these methods by product line, groupings of similar product lines, and the aforementioned actuarial assumptions, and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the valuation of the net liability for unpaid losses and loss adjustment expense, including controls over the selection of actuarial methods and development of significant assumptions, as well as controls designed to identify and address management bias and contrary evidence. These procedures also included, among others, the involvement of professionals with specialized skill and knowledge to assist in performing one or a combination of procedures for a sample of product lines, including (i) independently estimating reserves using actual historical data and loss development patterns, as well as industry data and other benchmarks, and comparing management’s actuarially determined reserves to these independent estimates and (ii) evaluating management’s actuarial reserving methods and aforementioned factors, including actuarial assumptions and judgments impacting loss reserves and the consistency of management’s approach period-over-period. Performing these procedures involved testing the completeness and accuracy of data used by management on a sample basis.

/s/ PricewaterhouseCoopers LLP

New York, New York

February 12, 2026

We have served as the Company’s auditor since 1980.

AIG | 2025 Form 10-K			81

American International Group, Inc.

Consolidated Balance Sheets

(in millions, except for share data)			December 31, 2025						December 31, 2024
Assets:
Investments:
Fixed maturity securities:
Bonds available for sale, at fair value, net of allowance for credit losses of $37 in 2025 and $38 in 2024 (amortized cost: 2025 - $71,772; 2024 - $66,195)			$			71,032			$			64,006
Other bond securities, at fair value						741						745
Equity securities, at fair value						502						704
Mortgage and other loans receivable, net of allowance for credit losses of $37,747 in 2025 and $37,800 in 2024						2,887						3,868
Other invested assets (portion measured at fair value: 2025 - $5,011; 2024 - $7,384)						6,696						9,828
Short-term investments, including restricted cash of $55 in 2025 and $55 in 2024 (portion measured at fair value: 2025 - $5,909; 2024 - $9,789)						11,141						14,462
Total investments						92,999						93,613
Cash						1,274						1,302
Accrued investment income						691						599
Premiums and other receivables, net of allowance for credit losses and disputes of $131 in 2025 and $127 in 2024						10,441						10,463
Reinsurance assets - Fortitude Re						3,167						3,427
Reinsurance assets - other, net of allowance for credit losses and disputes of $248 in 2025 and $220 in 2024						34,829						34,618
Deferred income tax assets						5,096						4,956
Deferred policy acquisition costs						2,106						2,065
Goodwill						3,435						3,373
Deposit accounting assets, net of allowance for credit losses of $49 in 2025 and $49 in 2024						2,443						2,171
Other assets, including restricted cash of $16 in 2025 and $15 in 2024 (portion measured at fair value: 2025 - $135; 2024 - $179)						4,773						4,735
Total assets			$			161,254			$			161,322
Liabilities:
Liability for unpaid losses and loss adjustment expenses, including allowance for credit losses of $14 in 2025 and $14 in 2024			$			70,666			$			69,168
Unearned premiums						17,991						17,232
Future policy benefits						1,385						1,317
Other policyholder funds						352						418
Fortitude Re funds withheld payable (portion measured at fair value: 2025 - $(92); 2024 - $(128))						3,038						3,207
Premiums and other related payables						5,448						6,052
Deposit accounting liabilities						3,295						3,005
Commissions and premium taxes payable						1,556						1,522
Current and deferred income tax liabilities						661						426
Other liabilities (portion measured at fair value: 2025 - $162; 2024 - $251)						6,509						7,503
Long-term debt						9,035						8,764
Debt of consolidated investment entities						156						158
Total liabilities						120,092						118,772
Contingencies, commitments and guarantees (See Note 15)
AIG shareholders’ equity:
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2025 - 1,906,671,492 and 2024 - 1,906,671,492						4,766						4,766
Treasury stock, at cost; 2025 - 1,368,489,324 shares; 2024 - 1,300,512,040 shares of common stock						(71,199)						(65,573)
Additional paid-in capital						75,373						75,348
Retained earnings						37,186						35,079
Accumulated other comprehensive loss						(4,987)						(7,099)
Total AIG shareholders’ equity						41,139						42,521
Non-redeemable noncontrolling interests						23						29
Total equity						41,162						42,550
Total liabilities and equity			$			161,254			$			161,322

See accompanying Notes to Consolidated Financial Statements.

82			AIG | 2025 Form 10-K

American International Group, Inc.

Consolidated Statements of Income (Loss)

									Years Ended December 31,
(dollars in millions, except per common share data)																					2025						2024						2023
Revenues:
Premiums																		$			23,751			$			23,537			$			25,564
Net investment income:
Net investment income - excluding Fortitude Re funds withheld assets																					4,066						4,111						3,266
Net investment income - Fortitude Re funds withheld assets																					149						144						180
Total net investment income																					4,215						4,255						3,446
Net realized losses:
Net realized losses - excluding Fortitude Re funds withheld assets and embedded derivative																					(966)						(434)						(734)
Net realized losses on Fortitude Re funds withheld assets																					(70)						(39)						(71)
Net realized losses on Fortitude Re funds withheld embedded derivative																					(166)						(75)						(273)
Total net realized losses																					(1,202)						(548)						(1,078)
Other income																					11						7						6
Total revenues																					26,775						27,251						27,938
Benefits, losses and expenses:
Losses and loss adjustment expenses incurred																					14,162						14,567						15,393
Amortization of deferred policy acquisition costs																					3,371						3,425						3,771
General operating and other expenses																					5,053						5,529						5,399
Interest expense																					396						462						516
(Gain) loss on extinguishment of debt																					(5)						14						(37)
Net (gain) loss on divestitures and other																					(81)						(616)						29
Total benefits, losses and expenses																					22,896						23,381						25,071
Income from continuing operations before income tax expense																					3,879						3,870						2,867
Income tax expense (benefit):
Current																					905						657						176
Deferred																					(123)						513						(50)
Income tax expense																					782						1,170						126
Income from continuing operations																					3,097						2,700						2,741
Income (loss) from discontinued operations, net of income taxes																					—						(3,626)						1,137
Net income (loss)																					3,097						(926)						3,878
Less: Net income attributable to noncontrolling interests																					1						478						235
Net income (loss) attributable to AIG																					3,096						(1,404)						3,643
Less: 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
Income per common share attributable to AIG common shareholders:
Basic:
Income from continuing operations																		$			5.48			$			4.11			$			3.77
Income (loss) from discontinued operations																		$			—			$			(6.30)			$			1.25
Net income (loss) attributable to AIG common shareholders																		$			5.48			$			(2.19)			$			5.02
Diluted:
Income from continuing operations																		$			5.43			$			4.07			$			3.74
Income (loss) from discontinued operations																		$			—			$			(6.24)			$			1.24
Net income (loss) attributable to AIG common shareholders																		$			5.43			$			(2.17)			$			4.98
Weighted average shares outstanding:
Basic																					565,078,072						651,448,307						719,506,291
Diluted																					570,349,988						657,283,160						725,233,068

See accompanying Notes to Consolidated Financial Statements.

AIG | 2025 Form 10-K			83

American International Group, Inc.

Consolidated Statements of Comprehensive Income (Loss)

									Years Ended December 31,
(in millions)																					2025						2024						2023
Net income (loss)																		$			3,097			$			(926)			$			3,878
Other comprehensive income (loss), net of tax
Change in unrealized appreciation of fixed maturity securities on which allowance for credit losses was taken																					1						60						—
Change in unrealized appreciation of all other investments																					1,495						279						2,369
Change in the discount rates used to measure traditional and limited payment long-duration insurance contracts																					19						(44)						(60)
Change in foreign currency translation adjustments																					540						(507)						118
Change in retirement plan liabilities adjustment																					57						48						112
Change in other comprehensive income (loss) related to discontinued operations																					—						(945)						3,401
Corebridge deconsolidation																					—						7,214						—
Other comprehensive income																					2,112						6,105						5,940
Comprehensive income																					5,209						5,179						9,818
Less: Comprehensive income attributable to noncontrolling interests																					1						182						1,534
Comprehensive income attributable to AIG																		$			5,208			$			4,997			$			8,284

See accompanying Notes to Consolidated Financial Statements.

84			AIG | 2025 Form 10-K

American International Group, Inc.

Consolidated Statements of Equity

(in millions, except per share data)			Preferred Stock and Additional Paid-in Capital									Common Stock						Treasury Stock						Additional Paid-in Capital						Retained Earnings			Accumulated Other Comprehensive Income (Loss)									Total AIG Share- holders' Equity			Non- redeemable Non- controlling Interests									Total Equity
Balance, January 1, 2023			$			485			$			4,766			$			(56,473)			$			79,915			$			34,893			$			(22,616)			$			40,970			$			2,484			$			43,454
Common stock issued under stock plans						—						—						298						(423)						—						—						(125)						—						(125)
Purchase of common stock						—						—						(3,014)						—						—						—						(3,014)						—						(3,014)
Net income attributable to AIG or noncontrolling interests						—						—						—						—						3,643						—						3,643						235						3,878
Dividends on preferred stock ($1,462.50 per share)						—						—						—						—						(29)						—						(29)						—						(29)
Dividends on common stock ($1.40 per share)						—						—						—						—						(997)						—						(997)						—						(997)
Other comprehensive income						—						—						—						—						—						4,641						4,641						1,299						5,940
Net increase (decrease) due to divestitures and acquisitions						—						—						—						(3,793)						—						3,938						145						2,524						2,669
Contributions from noncontrolling interests						—						—						—						—						—						—						—						49						49
Distributions to noncontrolling interests						—						—						—						—						—						—						—						(710)						(710)
Other						—						—						—						111						6						—						117						69						186
Balance, December 31, 2023			$			485			$			4,766			$			(59,189)			$			75,810			$			37,516			$			(14,037)			$			45,351			$			5,950			$			51,301
Common stock issued under stock plans						—						—						329						(324)						—						—						5						—						5
Redemption of preferred stock						(485)						—						—						—						—						—						(485)						—						(485)
Purchase of common stock						—						—						(6,713)						—						—						—						(6,713)						—						(6,713)
Net income (loss) attributable to AIG or noncontrolling interests						—						—						—						—						(1,404)						—						(1,404)						478						(926)
Dividends on preferred stock ($365.625 per share) and preferred stock redemption premiums						—						—						—						—						(22)						—						(22)						—						(22)
Dividends on common stock ($1.56 per share)						—						—						—						—						(1,002)						—						(1,002)						—						(1,002)
Other comprehensive income (loss)						—						—						—						—						—						6,401						6,401						(296)						6,105
Net decrease due to divestitures and acquisitions						—						—						—						(418)						—						537						119						(6,015)						(5,896)
Contributions from noncontrolling interests						—						—						—						—						—						—						—						28						28
Distributions to noncontrolling interests						—						—						—						—						—						—						—						(72)						(72)
Other						—						—						—						280						(9)						—						271						(44)						227
Balance, December 31, 2024			$			—			$			4,766			$			(65,573)			$			75,348			$			35,079			$			(7,099)			$			42,521			$			29			$			42,550
Common stock issued under stock plans						—						—						249						(185)						—						—						64						—						64
Purchase of common stock						—						—						(5,875)						—						—						—						(5,875)						—						(5,875)
Net income attributable to AIG or noncontrolling interests						—						—						—						—						3,096						—						3,096						1						3,097
Dividends on common stock ($1.75 per share)						—						—						—						—						(976)						—						(976)						—						(976)
Other comprehensive income						—						—						—						—						—						2,112						2,112						—						2,112
Distributions to noncontrolling interests						—						—						—						—						—						—						—						(8)						(8)
Other						—						—						—						210						(13)						—						197						1						198
Balance, December 31, 2025			$			—			$			4,766			$			(71,199)			$			75,373			$			37,186			$			(4,987)			$			41,139			$			23			$			41,162

See accompanying Notes to Consolidated Financial Statements.

AIG | 2025 Form 10-K			85

American International Group, Inc.

Consolidated Statements of Cash Flows

			Years Ended December 31,
(in millions)						2025						2024						2023
Cash flows from operating activities:
Net income (loss)			$			3,097			$			(926)			$			3,878
(Income) loss from discontinued operations						—						3,626						(1,137)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Net losses on sales of securities available for sale and other assets						706						637						662
Net (gain) loss on divestitures and other						(81)						(616)						29
(Gain) loss on extinguishment of debt						(5)						14						(37)
Unrealized (gains) losses in earnings - net						(423)						(571)						1,075
Equity in income from equity method investments, net of dividends or distributions						—						(54)						(15)
Depreciation and other amortization						3,455						3,597						3,841
Impairments of assets						322						27						21
Changes in operating assets and liabilities:
Insurance reserves						93						341						823
Premiums and other receivables and payables - net						(1,168)						(571)						544
Reinsurance assets, net						501						727						(204)
Capitalization of deferred policy acquisition costs						(3,438)						(3,519)						(4,157)
Current and deferred income taxes - net						452						468						(338)
Other, net						(197)						197						1,968
Total adjustments						217						677						4,212
Net cash provided by operating activities - continuing operations						3,314						3,377						6,953
Net cash used in operating activities - discontinued operations						—						(104)						(710)
Net cash provided by operating activities						3,314						3,273						6,243
Cash flows from investing activities:
Proceeds from (payments for)
Sales or distributions of:
Available for sale securities						12,411						14,063						15,242
Other securities						546						263						360
Other invested assets						4,086						6,588						960
Divestitures, net						—						587						2,568
Maturities of fixed maturity securities available for sale						8,905						9,223						9,083
Principal payments received on and sales of mortgage and other loans receivable						1,304						1,007						1,265
Purchases of:
Available for sale securities						(25,373)						(22,990)						(22,020)
Other securities						(241)						(267)						(242)
Other invested assets						(851)						(557)						(1,017)
Mortgage and other loans receivable						(261)						(470)						(1,021)
Net change in short-term investments						3,485						(1,538)						(5,911)
Other, net						(821)						(66)						(1,754)
Net cash provided by (used in) investing activities - continuing operations						3,190						5,843						(2,487)
Net cash used in investing activities - discontinued operations						—						(4,171)						(4,534)
Net cash provided by (used in) investing activities						3,190						1,672						(7,021)
Cash flows from financing activities:
Proceeds from (payments for)
Issuance of long-term debt						1,241						661						742
Repayments of long-term debt						(1,099)						(2,047)						(2,304)
Repayments of debt of consolidated investment entities						(2)						(1)						(45)
Purchase of common stock						(5,836)						(6,652)						(2,961)
Redemption of preferred stock						—						(485)						—
Dividends on preferred stock and preferred stock redemption premiums						—						(22)						(29)
Dividends on common stock						(976)						(1,002)						(997)
Other, net						129						605						2,846
Net cash used in financing activities - continuing operations						(6,543)						(8,943)						(2,748)
Net cash provided by financing activities - discontinued operations						—						3,880						3,530
Net cash provided by (used in) financing activities						(6,543)						(5,063)						782
Effect of exchange rate changes on cash and restricted cash						12						(83)						(13)
Net decrease in cash and restricted cash						(27)						(201)						(9)
Cash and restricted cash at beginning of year						1,372						1,573						1,571
Cash and restricted cash of held for sale assets						—						—						11
Cash and restricted cash at end of year			$			1,345			$			1,372			$			1,573

86			AIG | 2025 Form 10-K

American International Group, Inc.

Consolidated Statements of Cash Flows (continued)

Supplementary Disclosure of Consolidated Cash Flow Information

						Years Ended December 31,
(in millions)						2025						2024						2023
Cash						$	1,274					$	1,302					$	1,540
Restricted cash included in Short-term investments*						55						55						1
Restricted cash included in Other assets*						16						15						32
Total cash and restricted cash shown in the Consolidated Statements of Cash Flows						$	1,345					$	1,372					$	1,573
Cash paid during the period for:
Interest						$	389					$	858					$	1,059
Taxes						$	330					$	708					$	984
Non-cash investing activities:
Fixed maturity securities available for sale received in connection with pension risk transfer transactions attributed to discontinued operations						$	—					$	1,316					$	4,317
Fixed maturity securities and other invested assets received in connection with reinsurance transactions						$	—					$	256					$	110
Fixed maturity securities and other invested assets transferred in connection with reinsurance transactions						$	—					$	(148)					$	(838)
Non-cash consideration received from sale of Validus Re						$	—					$	—					$	290
Non-cash financing activities:
Interest credited to policyholder contract deposits included in financing activities						$	—					$	2,416					$	4,501
Fee income debited to policyholder contract deposits included in financing activities						$	—					$	(1,426)					$	(2,122)

*Includes funds held for tax sharing payments to AIG Parent, security deposits, and replacement reserve deposits related to real estate.

See accompanying Notes to Consolidated Financial Statements.

AIG | 2025 Form 10-K			87

ITEM 8 | Notes to Consolidated Financial Statements | 1. Basis of Presentation

1. Basis of Presentation

American International Group, Inc. is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals in over 200 countries and jurisdictions protect their assets and manage risks through AIG operations, licenses and authorizations as well as network partners. Unless the context indicates otherwise, the terms “AIG,” “we,” “us,” “our” or "the Company" mean American International Group, Inc. and its consolidated subsidiaries, and the term “AIG Parent” means American International Group, Inc. and not any of its consolidated subsidiaries.

The consolidated financial statements include the accounts of AIG Parent, our controlled subsidiaries (generally through a greater than 50 percent ownership of voting rights and voting interests), and variable interest entities (VIEs) of which we are the primary beneficiary. Equity investments in entities that we do not consolidate, including corporate entities in which we have significant influence and partnership and partnership-like entities in which we have more than minor influence over the operating and financial policies, are accounted for under the equity method unless we have elected the fair value option.

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP). All material intercompany accounts and transactions have been eliminated.

STRATEGIC INVESTMENTS

On October 30, 2025, AIG announced strategic investments in Convex Group Limited (Convex), a global specialty insurer, and Onex Corporation (Onex), a global asset manager. AIG will acquire a 35 percent equity interest in Convex for approximately $2.1 billion as well as a 9.9 percent ownership stake in Onex, for approximately $646 million, with the intent to invest up to $2.0 billion over three years in Onex’s investment funds. On February 6, 2026, both transactions closed. AIG will also participate directly in Convex’s underwriting portfolio through a whole account quota share structure from January 1, 2026.

RENEWAL RIGHTS ACQUISITION

On October 27, 2025, AIG announced definitive agreements with Everest Group, Ltd. (Everest) to acquire the renewal rights of Everest’s global retail commercial insurance portfolios for an aggregate purchase price of $301 million. AIG also paid Everest $30 million for originating and structuring the transaction and to reimburse Everest for certain expenses. The purchase price is subject to adjustment, 90 days after December 31, 2025, such that the final purchase price will be equal to 15 percent of the actual premiums written for the period beginning January 1, 2025 through December 31, 2025 (aggregate premiums). Additionally, if AIG gross written premium paid and payable in 2026 are less than 80 percent of the aggregate premiums, Everest will reimburse a portion of the purchase price depending on the relative percentage of such aggregate premiums, which amount shall not exceed $70 million. AIG has also agreed to pay Everest affiliates $10 million per month for nine months for specified transition services.

SALES/DISPOSALS OF ASSETS AND BUSINESSES

Crop Risk Services

On July 3, 2023, AIG closed the sale of Crop Risk Services, Inc. to American Financial Group, Inc. and in substance, AIG exited the crop business. The gross proceeds, before deducting commissions, were $234 million, resulting in a pre-tax gain of $72 million for the year ended December 31, 2023.

Validus Re

On November 1, 2023, AIG completed the sale of Validus Reinsurance, Ltd. (Validus Re), including AlphaCat Managers Ltd. and the Talbot Treaty reinsurance business, to RenaissanceRe Holdings Ltd. (RenaissanceRe) and received cash proceeds of $2.7 billion from RenaissanceRe and 1.3 million shares of RenaissanceRe common stock valued at $290 million as of the closing date, resulting in a pre-tax loss of $78 million for the year ended December 31, 2023. On October 30, 2025, AIG sold all RenaissanceRe common stock shares for $323 million. The results of Validus Re are reported in North America Commercial and International Commercial segments.

88			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 1. Basis of Presentation

Global Personal Travel Business

On December 2, 2024, AIG concluded the sale of its global individual personal travel insurance and assistance business to Zurich Insurance Group (Zurich) for $600 million in cash plus additional earn-out consideration, resulting in a pre-tax gain of $511 million for the year ended December 31, 2024. The global individual personal travel insurance and assistance business is reported in the Global Personal segment. AIG has also agreed to provide transition services to Zurich for 30 months after the transaction date. Additionally, AIG has agreements in place to front 100 percent of all new travel business produced by Zurich, whereby all of the economics of the new travel business will pass to Zurich through the fronting arrangements, which is recognized as a component of Net gain (loss) on divestitures and other.

USE OF ESTIMATES

The preparation of financial statements in accordance with U.S. GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and 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.

2. Summary of Significant Accounting Policies

The following list identifies our significant accounting policies presented in other Notes to these Consolidated Financial Statements, with a reference to the Note where a detailed description can be found:

Note 6. Investments •Fixed maturity and equity securities •Other invested assets •Net investment income •Net realized gains (losses) •Allowance for credit losses Note 7. Lending Activities •Mortgage and other loans receivable – net of allowance Note 8. Reinsurance •Reinsurance assets – net of allowance •Retroactive reinsurance Note 9. Deferred Policy Acquisition Costs Note 10. Variable Interest Entities			Note 11. Derivatives and Hedge Accounting •Derivative assets and liabilities, at fair value Note 12. Goodwill and Other Intangible Assets Note 13. Insurance Liabilities •Liability for unpaid losses and loss adjustment expenses •Discounting of reserves Note 14. Debt •Long-term debt Note 15. Contingencies, Commitments and Guarantees •Legal contingencies Note 17. Earnings Per Common Share (EPS) Note 21. Income Taxes

OTHER SIGNIFICANT ACCOUNTING POLICIES

Premiums are presented net of reinsurance, as applicable. Premiums for short-duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums written and earned on a pro rata basis over the term of the related coverage. In addition, certain miscellaneous income is included as premiums written and earned. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired terms of coverage. Reinsurance premiums are typically earned over the same period as the underlying policies or risks covered by the contract. As a result, the earnings pattern of a reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies throughout the year. Premiums from long-duration life products are recognized as revenues when due.

AIG | 2025 Form 10-K			89

ITEM 8 | Notes to Consolidated Financial Statements | 2. Summary of Significant Accounting Policies

Reinsurance premiums for assumed business are estimated based on information received from ceding companies and reinsurers. Any subsequent differences that arise regarding such estimates are recorded in the periods in which they are determined.

Cash represents cash on hand and demand deposits.

Short-term investments include interest bearing investments and time deposits. Securities included within short-term investments are stated at estimated fair value.

Premiums and other receivables – net of allowance for credit losses and disputes include premium balances receivable, amounts due from agents and brokers and policyholders, receivables resulting from sales of securities that had not yet settled, cash collateral posted to derivative counterparties that is not eligible to be netted against derivative liabilities and other receivables.

Deposit accounting assets and liabilities We have entered into certain insurance and reinsurance contracts that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. When we receive premiums on such contracts, the premiums received, after deduction for certain related expenses, are recorded as deposits within Deposit accounting liabilities in the Consolidated Balance Sheets. Net proceeds of these deposits are invested and generate Net investment income. When we pay premiums on such contracts, the premiums paid are recorded as deposits within Deposit accounting assets in the Consolidated Balance Sheets. The deposit asset or liability is adjusted as amounts are paid, consistent with the underlying contracts. Deferred gains on retroactive reinsurance agreements are also reflected within Deposit accounting liabilities.

Other assets consist of prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, intangible assets other than goodwill, restricted cash, derivative assets, and accrued interest income.

The cost of buildings and furniture and equipment is depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and fixtures). Expenditures for maintenance and repairs are charged to income as incurred and expenditures for improvements are capitalized and depreciated. We periodically assess the carrying amount of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized using the straight-line method over a period generally not exceeding ten years.

Other liabilities consist of other funds on deposit, other payables, securities sold under agreements to repurchase, securities sold but not yet purchased, liabilities resulting from purchases of securities that have not yet settled, derivative liabilities, cash collateral received from derivative counterparties that contractually cannot be netted against derivative assets and allowance for credit losses in relation to off-balance sheet commitments.

Foreign currency Financial statement accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income, net of any related taxes, in Total AIG shareholders’ equity. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a consolidated entity are remeasured into that entity’s functional currency resulting in exchange gains or losses recorded in income. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income.

Non-redeemable noncontrolling interest is the portion of equity (net assets) and net income (loss) in a subsidiary not attributable, directly or indirectly, to AIG.

ACCOUNTING STANDARDS ADOPTED DURING 2025

Income Tax

In December 2023, the Financial Accounting Standards Board (FASB) issued an accounting standard update to address improvements to income tax disclosures. The standard requires disaggregated information about a company’s effective tax rate reconciliation as well as information on income taxes paid. AIG adopted the applicable disclosures in Note 21 of its 2025 Annual Report on Form 10K on a prospective basis. The adoption of the standard did not have an impact on AIG’s consolidated results of operations and financial condition.

90			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 2. Summary of Significant Accounting Policies

FUTURE APPLICATION OF ACCOUNTING STANDARDS

Disaggregation of Income Statement Expenses

On November 4, 2024, the FASB issued new guidance that is intended to improve disclosures regarding the nature of expenses included in the income statement. The standard will require companies to disaggregate certain expense captions into specified categories in disclosures within notes to the financial statements and provide qualitative descriptions for those that are not separately disclosed. The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. The requirements can be applied prospectively or retrospectively for prior periods presented when adopted. We are assessing the impact of the standard.

Improvements to Internal-use Software

In September 2025, the FASB issued targeted improvements to modernize the accounting for software development costs. Under the new guidance, qualifying costs will be capitalized when management authorizes a project and it is probable the project will be completed and used to perform the intended function, rather than when a project reaches the application development stage under existing guidance. The effective date for the standard is for annual periods beginning after December 15, 2027 and interim reporting periods within those fiscal years. Early adoption is permitted. The amendments can be applied either prospectively, retrospectively or utilizing a modified transition approach. We are assessing the impact of the standard.

3. Segment Information

AIG has three reportable segments, North America Commercial, International Commercial and Global Personal. Our chief executive officer and chief financial officer are our chief operating decision makers (CODMs) and use underwriting income (loss) measure to benchmark and assess AIG's performance by segment and in establishing management’s compensation. Our General Insurance business (General Insurance) consists of our three segments and the Net investment income related to our insurance operations.

NORTH AMERICA COMMERCIAL

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

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.

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.

PRODUCTS

The segments consist of the following products:

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

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

OTHER OPERATIONS

Other Operations predominantly consists of Net Investment Income from our AIG Parent liquidity portfolio, Corebridge Financial, Inc. (Corebridge) dividend income, corporate General operating expenses, and Interest expense.

SEGMENT RESULTS

Management uses Underwriting income (loss) as the basis for the segment performance reviews. AIG calculates Underwriting income (loss) by subtracting Losses and loss adjustment expense incurred, Amortization of deferred policy acquisition costs (DAC), Other acquisition cost, and General operating expense from Net premiums earned. Assets by reportable segment are not used by the CODMs for purposes of making decisions about allocating resources to the segment and assessing its performance.

AIG | 2025 Form 10-K			91

ITEM 8 | Notes to Consolidated Financial Statements | 3. Segment Information

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

2025
(in millions)			Net Premiums Written			Net Premiums Earned			Losses and Loss Adjustment Expenses Incurred(a)			Amortization of DAC(a)			Other Acquisition Expenses(a)			General Operating Expenses(a)(b)			Underwriting Income (Loss)			Net Investment Income			Reconciliation to Income (Loss) from Continuing Operations Before Income Tax Expense
2025
North America Commercial			$	8,759		$	8,626		$	5,466		$	862		$	216		$	938		$	1,144
International Commercial			8,663			8,580			4,781			1,088			364			1,229			1,118
Global Personal			6,253			6,472			3,721			1,407			358			916			70
Total General Insurance			$	23,675		$	23,678		$	13,968		$	3,357		$	938		$	3,083		$	2,332		$	3,433		$	5,765
Interest expense																								—			(392)
Other Operations																								346			(29)
Elimination and consolidations																								(1)			—
Total																								3,778			5,344
Reconciling items:
Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares																								255			255
Other income (expense) - net																								6			—
Gain (loss) on extinguishment of debt																								—			5
Net investment income on Fortitude Re funds withheld assets																								149			149
Net realized losses on Fortitude Re funds withheld assets																								—			(70)
Net realized losses on Fortitude Re funds withheld embedded derivative																								—			(166)
Net realized gains (losses)(c)																								(4)			(973)
Net gain (loss) on divestitures and other																								—			81
Non-operating litigation reserves and settlements																								—			9
(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements																								—			(105)
Net loss reserve discount charge																								—			(48)
Net results of businesses in run-off(d)																								31			4
Non-operating pension expenses																								—			(15)
Integration and transaction costs associated with acquiring or divesting businesses																								—			(136)
Restructuring and other costs(e)																								—			(439)
Non-recurring costs related to regulatory or accounting changes																								—			(16)
Total AIG Consolidated																								$	4,215		$	3,879

92			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 3. Segment Information

(in millions)			Net Premiums Written			Net Premiums Earned			Losses and Loss Adjustment Expenses Incurred(a)			Amortization of DAC(a)			Other Acquisition Expenses(a)			General Operating Expenses(a)(b)			Underwriting Income (Loss)			Net Investment Income			Reconciliation to Income (Loss) from Continuing Operations Before Income Tax Expense
2024
North America Commercial			$	8,452		$	8,172		$	5,713		$	824		$	222		$	865		$	548
International Commercial			8,364			8,145			4,463			1,018			342			1,095			1,227
Global Personal			7,086			7,140			3,862			1,571			573			992			142
Total General Insurance			$	23,902		$	23,457		$	14,038		$	3,413		$	1,137		$	2,952		$	1,917		$	3,060		$	4,977
Interest expense																								—			(445)
Other Operations																								424			(207)
Elimination and consolidations																								—			(1)
Total																								3,484			4,324
Reconciling items:
Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares																								586			586
Other income (expense) - net																								16			—
Gain (loss) on extinguishment of debt																								—			(14)
Net investment income on Fortitude Re funds withheld assets																								144			144
Net realized losses on Fortitude Re funds withheld assets																								—			(39)
Net realized losses on Fortitude Re funds withheld embedded derivative																								—			(75)
Net realized gains (losses)(c)																								8			(428)
Net gain (loss) on divestitures and other																								—			616
(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements																								—			(105)
Net loss reserve discount charge																								—			(226)
Net results of businesses in run-off(d)																								17			(111)
Integration and transaction costs associated with acquiring or divesting businesses																								—			(39)
Restructuring and other costs(e)																								—			(745)
Non-recurring costs related to regulatory or accounting changes																								—			(18)
Total AIG Consolidated																								$	4,255		$	3,870

AIG | 2025 Form 10-K			93

ITEM 8 | Notes to Consolidated Financial Statements | 3. Segment Information

(in millions)			Net Premiums Written			Net Premiums Earned			Losses and Loss Adjustment Expenses Incurred(a)			Amortization of DAC(a)			Other Acquisition Expenses(a)			General Operating Expenses(a)(b)			Underwriting Income (Loss)			Net Investment Income			Reconciliation to Income (Loss) from Continuing Operations Before Income Tax Expense
2023
North America Commercial			$	11,432		$	10,233		$	6,323		$	1,371		$	231		$	953		$	1,355
International Commercial			8,168			7,964			4,641			943			350			1,028			1,002
Global Personal			7,119			6,894			3,811			1,309			698			1,084			(8)
Total General Insurance			$	26,719		$	25,091		$	14,775		$	3,623		$	1,279		$	3,065		$	2,349		$	3,022		$	5,371
Interest expense																								—			(498)
Other Operations																								186			(535)
Elimination and consolidations																								(13)			(17)
Total																								3,195			4,321
Reconciling items:
Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares																								53			53
Other income (expense) - net																								8			—
Gain (loss) on extinguishment of debt																								—			37
Net investment income on Fortitude Re funds withheld assets																								180			180
Net realized losses on Fortitude Re funds withheld assets																								—			(71)
Net realized losses on Fortitude Re funds withheld embedded derivative																								—			(273)
Net realized gains (losses)(c)																								(12)			(743)
Net gain (loss) on divestitures and other																								—			(29)
Non-operating litigation reserves and settlements																								—			(1)
(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements																								—			62
Net loss reserve discount charge																								—			(195)
Net results of businesses in run-off(d)																								21			(31)
Non-operating pension expenses																								—			(71)
Integration and transaction costs associated with acquiring or divesting businesses																								—			(6)
Restructuring and other costs(e)																								—			(356)
Non-recurring costs related to regulatory or accounting changes																								—			(22)
Net impact from elimination of international reporting lag																								1			12
Total AIG Consolidated																								$	3,446		$	2,867

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

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

(c)Includes all Net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets).

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

For the year ended December 31, 2024, we recorded severance charges of $353 million and asset impairment charges of $53 million as a result of restructuring activities.

The following table presents AIG’s consolidated total revenues and real estate and other fixed assets, net of accumulated depreciation, by major geographic area:

			Total Revenues*
(in millions)						2025						2024						2023
North America Commercial			$			8,626			$			8,172			$			10,233
International Commercial						8,580						8,145						7,964
Global Personal						6,472						7,140						6,894
Net investment income						4,215						4,255						3,446
Net realized losses						(1,202)						(548)						(1,078)
Other income						11						7						6
Net results of businesses in run-off						76						83						475
Net impact from elimination of international reporting lag						—						—						3

94			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 3. Segment Information

			Total Revenues*
(in millions)						2025						2024						2023
Elimination and consolidations						(3)						(3)						(5)
Total Revenue			$			26,775			$			27,251			$			27,938
North America			$			12,699			$			13,031			$			14,701
International						14,076						14,220						13,237
Consolidated			$			26,775			$			27,251			$			27,938
			Real Estate and Other Fixed Assets, Net of Accumulated Depreciation
(in millions)						2025						2024						2023
North America			$			1,034			$			804			$			760
International						335						312						372
Consolidated			$			1,369			$			1,116			$			1,132

*Revenues are generally reported according to the geographic location of the segment. International revenues consists of revenues from our General Insurance International operations.

4. Discontinued Operations Presentation

DISCONTINUED OPERATIONS PRESENTATION

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

Deconsolidation of Corebridge

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

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

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

Post Deconsolidation of Corebridge

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

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.

Due to share repurchases by Corebridge and the sale of shares by AIG after the Deconsolidation Date, as of December 31, 2025, AIG held 10.1 percent of the outstanding common stock of Corebridge.

On February 10, 2026, Nippon Life Insurance Company (Nippon) agreed to waive the transfer restriction set forth in the Stock Purchase Agreement, dated May 16, 2024, by and among AIG, Nippon and Corebridge, pursuant to which AIG was restricted from owning less than 9.9 percent of Corebridge’s issued and outstanding common stock at any time prior to December 9, 2026.

AIG | 2025 Form 10-K			95

ITEM 8 | Notes to Consolidated Financial Statements | 4. Discontinued Operations Presentation

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

Years Ended December 31,
(in millions)																		2025						2024
Corebridge pre-tax income (loss)																		$	(541)					$	1,574
Equity method income related to Corebridge (based on fair value)																		$	277					$	601

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

Years Ended December 31,
(in millions)																								2024						2023
Revenues:
Premiums																								$	2,723					$	7,690
Policy fees																								1,269						2,797
Net investment income																								5,238						11,146
Net realized losses																								(923)						(3,530)
Other income																								372						761
Total revenues																								8,679						18,864
Benefits, losses and expenses:
Policyholder benefits and losses incurred																								3,618						9,362
Change in the fair value of market risk benefits, net																								(350)						2
Interest credited to policyholder account balances																								2,184						4,424
Amortization of deferred policy acquisition costs																								465						1,037
General operating and other expenses																								1,350						3,100
Interest expense																								249						620
Net gain on divestitures and other																								(191)						(672)
Total benefits, losses and expenses																								7,325						17,873
Income from discontinued operations before income tax expense and loss on disposal of discontinued operations																								1,354						991
Income tax expense (benefit)																								226						(146)
Income from discontinued operations, net of income taxes before loss on disposal of discontinued operations																								1,128						1,137
Loss on disposition of operations, net of tax																								(4,754)						—
Income (loss) from discontinued operations, net of income taxes																								(3,626)						1,137
Less: Net income from discontinued operations attributable to noncontrolling interests																								478						235
Net income (loss) from discontinued operations attributable to AIG																								$	(4,104)					$	902

DISCONTINUED OPERATIONS LOSS PRESENTATION

The loss recognized in the second quarter of 2024 for the deconsolidation of Corebridge includes (i) $8.5 billion of retained investment in Corebridge (Corebridge’s quoted stock price is used for fair value measurement, which is classified as level 1 in the fair value hierarchy), (ii) $817 million of certain other investments (considered level 3 in the fair value hierarchy) which are measured based on valuation techniques (i.e., third-party appraisals) that use significant inputs (i.e., terminal capital rate and discount rate), and (iii) $378 million of an unsettled receivable. For details on fair value hierarchy, see Note 5. The loss on deconsolidation of Corebridge, as of December 31, 2024, is calculated as follows:

(in millions)
Corebridge retained investment (294.2 million shares at $28.90 per share at June 9, 2024)						$	8,502
Retained interest in certain investment entities and other assets						1,180
Net fair value of assets retained						9,682
Corebridge book value						12,409
Less: Noncontrolling interests						5,732
Corebridge book value excluding noncontrolling interests						6,677
Pre-tax gain on sale						3,005
Tax expense						545
Subtotal: After tax gain on sale before reclassification adjustment						2,460
Reclassification adjustment of Accumulated other comprehensive loss						(7,214)
After-tax loss on sale of Corebridge						$	(4,754)

96			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

5. Fair Value Measurements

FAIR VALUE MEASUREMENTS ON A RECURRING BASIS

We carry certain of our financial instruments at fair value. We define the fair value of a financial instrument as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are responsible for the determination of the value of the investments carried at fair value and the supporting methodologies and assumptions.

The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. We maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions.

Fair Value Hierarchy

Assets and liabilities recorded at fair value in the Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs:

• Level 1:** Fair value measurements based on quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments.

• Level 2:** Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

• Level 3:** Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The following is a description of the valuation methodologies used for instruments carried at fair value. These methodologies are applied to assets and liabilities across the levels discussed above, and the observability of the inputs used determines the appropriate level in the fair value hierarchy for the respective asset or liability.

VALUATION METHODOLOGIES OF FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE

Incorporation of Credit Risk in Fair Value Measurements

• Our Own Credit Risk.** Fair value measurements for certain liabilities incorporate our own credit risk by determining the explicit cost for each counterparty to protect against its net credit exposure to us at the balance sheet date by reference to observable AIG credit default swaps (CDS) or cash bond spreads. We calculate the effect of credit spread changes using discounted cash flow techniques that incorporate current market interest rates. A derivative counterparty’s net credit exposure to us is determined based on master netting agreements, when applicable, which take into consideration all derivative positions with us, as well as collateral we post with the counterparty at the balance sheet date.

• Counterparty Credit Risk.** Fair value measurements for freestanding derivatives incorporate counterparty credit by determining the explicit cost for us to protect against our net credit exposure to each counterparty at the balance sheet date by reference to observable counterparty CDS spreads, when available. When not available, other directly or indirectly observable credit spreads will be used to derive the best estimates of the counterparty spreads. Our net credit exposure to a counterparty is determined based on master netting agreements, which take into consideration all derivative positions with the counterparty, as well as collateral posted by the counterparty at the balance sheet date.

AIG | 2025 Form 10-K			97

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

Fair values for fixed maturity securities based on observable market prices for identical or similar instruments implicitly incorporate counterparty credit risk. Fair values for fixed maturity securities based on internal models incorporate counterparty credit risk by using discount rates that take into consideration cash issuance spreads for similar instruments or other observable information.

For fair values measured based on internal models, the cost of credit protection is determined under a discounted present value approach considering the market levels for single name CDS spreads for each specific counterparty, the mid-market value of the net exposure (reflecting the amount of protection required) and the weighted average life of the net exposure. CDS spreads are provided to us by an independent third party. We utilize an interest rate based on the appropriate benchmark curve to derive our discount rates.

While this approach does not explicitly consider all potential future behavior of the derivative transactions or potential future changes in valuation inputs, we believe this approach provides a reasonable estimate of the fair value of the assets and liabilities, including consideration of the impact of non-performance risk.

Fixed Maturity Securities

Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure fixed maturity securities at fair value. Market price data is generally obtained from dealer markets.

We employ independent third-party valuation service providers to gather, analyze, and interpret market information to derive fair value estimates for individual investments, based upon market-accepted methodologies and assumptions. The methodologies used by these independent third-party valuation service providers are reviewed and understood by management, through periodic discussion with and information provided by the independent third-party valuation service providers. In addition, as discussed further below, control processes designed to ensure the accuracy of these values are applied to the fair values received from independent third-party valuation service providers.

Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of market-accepted valuation methodologies, which may utilize matrix pricing, financial models, accompanying model inputs and various assumptions, provide a single fair value measurement for individual securities. The inputs used by the valuation service providers include, but are not limited to, market prices from completed transactions for identical securities and transactions for comparable securities, benchmark yields, interest rate yield curves, credit spreads, prepayment rates, default rates, recovery assumptions, currency rates, quoted prices for similar securities and other market-observable information, as applicable. If fair value is determined using financial models, these models generally take into account, among other things, market observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased.

We have control processes designed to ensure that the fair values received from independent third-party valuation service providers are accurately recorded, that their data inputs and valuation techniques are appropriate and consistently applied and that the assumptions used appear reasonable and consistent with the objective of determining fair value. We assess the reasonableness of individual security values received from independent third-party valuation service providers through various analytical techniques, and have procedures to escalate related questions internally and to the independent third-party valuation service providers for resolution. To assess the degree of pricing consensus among various valuation service providers for specific asset types, we conduct comparisons of prices received from available sources. We use these comparisons to establish a hierarchy for the fair values received from independent third-party valuation service providers to be used for particular security classes. We also validate prices for selected securities through reviews by members of management who have relevant expertise and who are independent of those charged with executing investing transactions.

When our independent third-party valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a price quote, which is generally non-binding, or by employing market accepted valuation models internally or via our third-party asset managers. Broker prices may be based on an income approach, which converts expected future cash flows to a single present value amount, with specific consideration of inputs relevant to particular security types. For structured securities, such inputs may include ratings, collateral types, geographic concentrations, underlying loan vintages, loan delinquencies and defaults, loss severity assumptions, prepayments, and weighted average coupons and maturities. When the volume or level of market activity for a security is limited, certain inputs used to determine fair value may not be observable in the market. Broker prices may also be based on a market approach that considers recent transactions involving identical or similar securities. Fair values provided by brokers are subject to similar control processes to those noted above for fair values from independent third-party valuation service providers, including management reviews. For those corporate debt instruments (for example, private placements) that are not traded in active markets or that are subject to transfer restrictions, valuations reflect illiquidity and non-transferability, based on available market evidence. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on credit spreads, yields or price levels of comparable securities, adjusted

98			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

for illiquidity and structure. Fair values determined internally or via our third-party asset managers are also subject to management review to ensure that valuation models and related inputs are reasonable.

The methodology above is relevant for all fixed maturity securities including residential mortgage backed securities (RMBS), commercial mortgage backed securities (CMBS), collateralized loan obligations (CLO), other asset‑backed securities (ABS) and fixed maturity securities issued by government sponsored entities and corporate entities.

Equity Securities Traded in Active Markets

Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure equity securities at fair value. Market price data is generally obtained from exchange or dealer markets.

Mortgage and Other Loans Receivable

We estimate the fair value of mortgage and other loans receivable that are measured at fair value by using dealer quotations, discounted cash flow analyses and/or internal valuation models. The determination of fair value considers inputs such as interest rate, maturity, the borrower’s creditworthiness, collateral, subordination, guarantees, past-due status, yield curves, credit curves, prepayment rates, market pricing for comparable loans and other relevant factors.

Other Invested Assets

We initially estimate the fair value of investments in certain hedge funds, private equity funds and other investment partnerships by reference to the transaction price. Subsequently, we generally obtain the fair value of these investments from net asset value information provided by the general partner or manager of the investments, the financial statements of which are generally audited annually. We consider observable market data and perform certain control procedures to validate the appropriateness of using the net asset value as a fair value measurement. The fair values of other investments carried at fair value, such as direct private equity holdings, are initially determined based on transaction price and are subsequently estimated based on available evidence such as market transactions in similar instruments, other financing transactions of the issuer and other available financial information for the issuer, with adjustments made to reflect illiquidity as appropriate. AIG's retained investment in Corebridge, for which we have elected the fair value option, is determined using Corebridge's stock price as its fair value.

Short-term Investments

For short-term investments that are measured at amortized cost, the carrying amounts of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk. Securities purchased under agreements to resell (reverse repurchase agreements) are generally treated as collateralized receivables. We report certain receivables arising from securities purchased under agreements to resell as Short-term investments in the Consolidated Balance Sheets. When these receivables are measured at fair value, we use market-observable interest rates to determine fair value.

Freestanding Derivatives

Derivative assets and liabilities can be exchange-traded or traded over-the-counter (OTC). We generally value exchange-traded derivatives such as futures and options using quoted prices in active markets for identical derivatives at the balance sheet date.

OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of and specific risks inherent in the instrument, as well as the availability of pricing information in the market. We generally use similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment.

For certain OTC derivatives that trade in less liquid markets, where we generally do not have corroborating market evidence to support significant model inputs and cannot verify the model to market transactions, the transaction price may provide the best estimate of fair value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so the model value at inception equals the transaction price. We will update valuation inputs in these models only when corroborated by evidence such as similar market transactions, independent third-party valuation service providers and/or broker or dealer quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used.

We value our super senior credit default swap portfolio using prices obtained from vendors and/or counterparties. The valuation of the super senior credit derivatives is complex because of the limited availability of market observable information due to the lack of trading

AIG | 2025 Form 10-K			99

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

and price transparency in certain structured finance markets. Our valuation methodologies for the super senior CDS portfolio have evolved over time in response to market conditions and the availability of market observable information. We have sought to calibrate the methodologies to available market information and to review the assumptions of the methodologies on a regular basis.

Fortitude Re funds withheld payable

The reinsurance transactions between AIG and Fortitude Re were structured as modified coinsurance (modco) and loss portfolio transfer arrangements with funds withheld (funds withheld). AIG has established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing reserves for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative and changes in fair value of the embedded derivative related to the funds withheld payable are recognized in earnings through realized gains (losses). This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements.

Other Liabilities

Other liabilities measured at fair value include certain securities sold under agreements to repurchase and certain securities sold but not yet purchased. Liabilities arising from securities sold under agreements to repurchase are generally treated as collateralized borrowings. We estimate the fair value of liabilities arising under these agreements by using market-observable interest rates. This methodology considers such factors as the coupon rate, yield curves and other relevant factors. Fair values for securities sold but not yet purchased are based on current market prices.

ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS

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

December 31, 2025						Level 1						Level 2						Level 3			Counterparty Netting(a)						Cash Collateral									Total
(in millions)
Assets:
Bonds available for sale:
U.S. government and government sponsored entities			$			209			$			3,089			$			—			$			—			$			—			$			3,298
Obligations of states, municipalities and political subdivisions						—						2,771						4						—						—						2,775
Non-U.S. governments						66						6,427						23						—						—						6,516
Corporate debt						—						37,122						113						—						—						37,235
RMBS						—						8,622						1,546						—						—						10,168
CMBS						—						4,592						24						—						—						4,616
CLO/ABS						—						4,683						1,741						—						—						6,424
Total bonds available for sale						275						67,306						3,451						—						—						71,032
Other bond securities:
Obligations of states, municipalities and political subdivisions						—						51						—						—						—						51
Non-U.S. governments						—						23						—						—						—						23
Corporate debt						—						274						—						—						—						274
RMBS						—						46						51						—						—						97
CMBS						—						42						—						—						—						42
CLO/ABS						—						135						119						—						—						254
Total other bond securities						—						571						170						—						—						741
Equity securities						446						1						55						—						—						502
Other invested assets**(b)**						1,512						143						92						—						—						1,747
Derivative assets**(c)**						—						312						26						(164)						(169)						5
Short-term investments						4,106						1,803						—						—						—						5,909
Other assets**(c)**						—						—						130						—						—						130
Total			$			6,339			$			70,136			$			3,924			$			(164)			$			(169)			$			80,066
Liabilities:
Derivative liabilities**(c)**			$			—			$			439			$			26			$			(164)			$			(212)			$			89
Fortitude Re funds withheld payable						—						—						(92)						—						—						(92)
Other liabilities						—						—						73						—						—						73
Total			$			—			$			439			$			7			$			(164)			$			(212)			$			70

100			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

December 31, 2024						Level 1						Level 2						Level 3			Counterparty Netting(a)						Cash Collateral									Total
(in millions)
Assets:
Bonds available for sale:
U.S. government and government sponsored entities			$			36			$			3,231			$			—			$			—			$			—			$			3,267
Obligations of states, municipalities and political subdivisions						—						3,140						3						—						—						3,143
Non-U.S. governments						161						7,939						7						—						—						8,107
Corporate debt						—						31,586						240						—						—						31,826
RMBS						—						6,710						1,894						—						—						8,604
CMBS						—						3,900						26						—						—						3,926
CLO/ABS						—						4,293						840						—						—						5,133
Total bonds available for sale						197						60,799						3,010						—						—						64,006
Other bond securities:
Obligations of states, municipalities and political subdivisions						—						50						—						—						—						50
Non-U.S. governments						—						24						—						—						—						24
Corporate debt						—						281						1						—						—						282
RMBS						—						50						50						—						—						100
CMBS						—						43						—						—						—						43
CLO/ABS						—						133						113						—						—						246
Total other bond securities						—						581						164						—						—						745
Equity securities						689						—						15						—						—						704
Other invested assets (b)						3,810						119						163						—						—						4,092
Derivative assets**(c)**						—						573						51						(270)						(304)						50
Short-term investments						7,942						1,847						—						—						—						9,789
Other assets**(c)**						—						—						129						—						—						129
Total			$			12,638			$			63,919			$			3,532			$			(270)			$			(304)			$			79,515
Liabilities:
Derivative liabilities**(c)**			$			—			$			571			$			51			$			(270)			$			(201)			$			151
Fortitude Re funds withheld payable						—						—						(128)						—						—						(128)
Other liabilities						—						—						100						—						—						100
Total			$			—			$			571			$			23			$			(270)			$			(201)			$			123

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

(b)Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $3.3 billion and $3.3 billion as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, includes AIG's ownership interest in Corebridge of $1.5 billion and $3.8 billion, respectively, on which AIG elected the fair value option.

(c)Presented as part of Other assets and Other liabilities on the Consolidated Balance Sheets.

AIG | 2025 Form 10-K			101

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

CHANGES IN LEVEL 3 RECURRING FAIR VALUE MEASUREMENTS

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

(in millions)						Fair Value Beginning of Year						Net Realized and Unrealized Gains (Losses) Included in Income						Other Comprehensive Income (Loss)						Purchases, Sales, Issuances and Settlements, Net						Gross Transfers In						Gross Transfers Out						Other						Fair Value End of Year						Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year						Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Year
December 31, 2025
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions						$	3					$	—					$	—					$	1					$	—					$	—					$	—					$	4					$	—					$	1
Non-U.S. governments						7						—						—						—						16						—						—						23						—						3
Corporate debt						240						(19)						(1)						(169)						109						(85)						38						113						—						27
RMBS						1,894						27						6						(141)						2						(242)						—						1,546						—						(7)
CMBS						26						(4)						5						(9)						6						—						—						24						—						1
CLO/ABS						840						8						17						1,090						—						(154)						(60)						1,741						—						19
Total bonds available for sale						3,010						12						27						772						133						(481)						(22)						3,451						—						44
Other bond securities:
Corporate debt						1						(1)						—						—						—						—						—						—						(1)						—
RMBS						50						2						—						—						1						(2)						—						51						2						—
CLO/ABS						113						4						—						(7)						31						(22)						—						119						8						—
Total other bond securities						164						5						—						(7)						32						(24)						—						170						9						—
Equity securities						15						4						—						18						18						—						—						55						1						—
Other invested assets						163						(3)						—						(25)						1						(63)						19						92						1						—
Other assets						129						—						—						1						—						—						—						130						—						—
Total						$	3,481					$	18					$	27					$	759					$	184					$	(568)					$	(3)					$	3,898					$	11					$	44

(in millions)						Fair Value Beginning of Year						Net Realized and Unrealized (Gains) Losses Included in Income						Other Comprehensive (Income) Loss						Purchases, Sales, Issuances and Settlements, Net						Gross Transfers In						Gross Transfers Out						Other						Fair Value End of Year						Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year						Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Year
Liabilities:
Fortitude Re funds withheld payable						$	(128)					$	166					$	—					$	(130)					$	—					$	—					$	—					$	(92)					$	(93)					$	—
Other Liabilities						100						(27)						—						—						—						—						—						73						—						—
Total						$	(28)					$	139					$	—					$	(130)					$	—					$	—					$	—					$	(19)					$	(93)					$	—

(in millions)						Fair Value Beginning of Year						Net Realized and Unrealized Gains (Losses) Included in Income						Other Comprehensive Income (Loss)						Purchases, Sales, Issuances and Settlements, Net						Gross Transfers In						Gross Transfers Out						Other						Fair Value End of Year						Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year						Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Year
December 31, 2024
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions						$	3					$	—					$	—					$	—					$	—					$	—					$	—					$	3					$	—					$	(5)
Non-U.S. governments						7						—						—						—						—						—						—						7						—						—
Corporate debt						323						(1)						(3)						(71)						232						(245)						5						240						—						(6)
RMBS						1,792						53						32						(238)						308						(89)						36						1,894						—						(43)
CMBS						25						(11)						13						(32)						108						(78)						1						26						—						1
CLO/ABS						1,289						(22)						54						(441)						43						(83)						—						840						—						37
Total bonds available for sale						3,439						19						96						(782)						691						(495)						42						3,010						—						(16)
Other bond securities:
Corporate debt						45						—						—						—						1						(45)						—						1						—						—
RMBS						51						1						—						(3)						—						(3)						4						50						2						—
CLO/ABS						138						1						—						4						2						(32)						—						113						(1)						—
Total other bond securities						234						2						—						1						3						(80)						4						164						1						—

102			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

(in millions)						Fair Value Beginning of Year						Net Realized and Unrealized Gains (Losses) Included in Income						Other Comprehensive Income (Loss)						Purchases, Sales, Issuances and Settlements, Net						Gross Transfers In						Gross Transfers Out						Other						Fair Value End of Year						Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year						Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Year
Equity securities						14						1						—						4						11						(13)						(2)						15						1						—
Other invested assets						221						(16)						—						(35)						—						(13)						6						163						(11)						—
Other assets						243						—						—						(114)						—						—						—						129						—						—
Total						$	4,151					$	6					$	96					$	(926)					$	705					$	(601)					$	50					$	3,481					$	(9)					$	(16)

(in millions)						Fair Value Beginning of Year						Net Realized and Unrealized (Gains) Losses Included in Income						Other Comprehensive (Income) Loss						Purchases, Sales, Issuances and Settlements, Net						Gross Transfers In						Gross Transfers Out						Other						Fair Value End of Year						Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year						Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Year
Liabilities:
Derivative liabilities, net(a)						$	(453)					$	41					$	—					$	377					$	—					$	—					$	35					$	—					$	(1)					$	—
Fortitude Re funds withheld payable						(148)						75						—						(55)						—						—						—						(128)						(26)						—
Other liabilities						122						(2)						—						(20)						—						—						—						100						—						—
Total						$	(479)					$	114					$	—					$	302					$	—					$	—					$	35					$	(28)					$	(27)					$	—

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

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

(in millions)			Net Investment Income						Net Realized Gains (Losses)												Total
December 31, 2025
Assets:
Bonds available for sale			$	27					$	(15)											$	12
Other bond securities			5						—												5
Equity securities			4						—												4
Other invested assets			(2)						(1)												(3)
December 31, 2024
Assets:
Bonds available for sale			$	75					$	(56)											$	19
Other bond securities			2						—												2
Equity securities			1						—												1
Other invested assets			(16)						—												(16)

(in millions)			Net Investment Income						Net Realized (Gains) Losses												Total
December 31, 2025
Liabilities:
Fortitude Re funds withheld payable			$	—					$	166											$	166
Other Liabilities			—						(27)												(27)
December 31, 2024
Liabilities:
Derivative liabilities, net			$	—					$	41											$	41
Fortitude Re funds withheld payable			—						75												75
Other Liabilities			—						(2)												(2)

AIG | 2025 Form 10-K			103

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

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

(in millions)			Purchases						Sales						Issuances and Settlements(a)						Purchases, Sales, Issuances and Settlements, Net(a)
December 31, 2025
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions			$	1					$	—					$	—					$	1
Non-U.S. governments			1						—						(1)						—
Corporate debt			6						(22)						(153)						(169)
RMBS			55						(3)						(193)						(141)
CMBS			—						(4)						(5)						(9)
CLO/ABS			1,444						(98)						(256)						1,090
Total bonds available for sale			1,507						(127)						(608)						772
Other bond securities:
RMBS			3						—						(3)						—
CLO/ABS			1						—						(8)						(7)
Total other bond securities			4						—						(11)						(7)
Equity securities			75						(57)						—						18
Other invested assets			11						—						(36)						(25)
Other assets			—						—						1						1
Total			$	1,597					$	(184)					$	(654)					$	759
Liabilities:
Fortitude Re funds withheld payable			$	—					$	—					$	(130)					$	(130)
Total			$	—					$	—					$	(130)					$	(130)
December 31, 2024
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions			$	1					$	—					$	(1)					$	—
Non-U.S. governments			4						—						(4)						—
Corporate Debt			43						(29)						(85)						(71)
RMBS			89						(53)						(274)						(238)
CMBS			—						(15)						(17)						(32)
CLO/ABS			447						(681)						(207)						(441)
Total bonds available for sale			584						(778)						(588)						(782)
Other bond securities:
RMBS			3						(1)						(5)						(3)
CLO/ABS			13						—						(9)						4
Total other bond securities			16						(1)						(14)						1
Equity securities			6						(2)						—						4
Other invested assets			3						—						(38)						(35)
Other assets			—						—						(114)						(114)
Total			$	609					$	(781)					$	(754)					$	(926)
Liabilities:
Derivative liabilities, net			$	—					$	—					$	377					$	377
Fortitude Re funds withheld payable			—						—						(55)						(55)
Other liabilities			—						—						(20)						(20)
Total			$	—					$	—					$	302					$	302

(a)There were no issuances during the years ended December 31, 2025 and 2024.

Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at December 31, 2025 and 2024 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities).

104			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

Transfers of Level 3 Assets and Liabilities

The Net realized and unrealized gains (losses) included in income (loss) or Other comprehensive income (loss) (OCI) as shown in the table above excludes $14 million and $(35) million of net gains (losses) related to assets and liabilities transferred into Level 3 during the years ended December 31, 2025 and 2024, respectively, and includes $6 million and $(13) million of net gains (losses) related to assets and liabilities transferred out of Level 3 during the years ended December 31, 2025 and 2024, respectively.

Transfers of Level 3 Assets

During the years ended December 31, 2025 and 2024, transfers into Level 3 assets included investments in private placement corporate debt, commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS), collateralized loan obligations (CLO)/asset backed securities (ABS) and equity securities. Transfers of private placement corporate debt and certain ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity. The transfers of investments in CMBS, RMBS, CLO and certain ABS into Level 3 assets were due to diminished market transparency and liquidity for individual security types.

During the years ended December 31, 2025 and 2024, transfers out of Level 3 assets primarily included investments in private placement corporate debt, CMBS, RMBS, CLO/ABS and equity securities. Transfers of private placement corporate debt out of Level 3 assets were based on consideration of market liquidity as well as related transparency of pricing and associated observable inputs for these investments. Transfers of certain investments in private placement corporate debt out of Level 3 assets were primarily the result of using observable pricing information that reflects the fair value of those securities without the need for adjustment based on our own assumptions regarding the characteristics of a specific security or the current liquidity in the market.

Transfers of Level 3 Liabilities

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

QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS

The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and includes only those instruments for which information about the inputs is reasonably available to us, such as data from independent third-party valuation service providers. Because input information from third parties with respect to certain Level 3 instruments (primarily CLO/ABS) may not be reasonably available to us, balances shown below may not equal total amounts reported for such Level 3 assets and liabilities:

(in millions)						Fair Value at December 31, 2025						Valuation Technique			Unobservable Input(b)			Range (Weighted Average)(c)
Assets:
Obligations of states, municipalities and political subdivisions						$			2			Discounted cash flow			Yield			5.27% - 5.27% (5.27%)
RMBS(a)									1,165			Discounted cash flow			Constant prepayment rate			4.09% - 7.47% (5.78%)
															Loss severity			39.29% - 79.56% (59.42%)
															Constant default rate			0.51% - 1.94% (1.22%)
															Yield			5.25% - 6.30% (5.77%)
CLO/ABS(a)									1,321			Discounted cash flow			Yield			0.07% - 13.26% (6.48%)
CMBS									24			Discounted cash flow			Yield			4.95% - 4.95% (4.95%)

(in millions)						Fair Value at December 31, 2024						Valuation Technique			Unobservable Input(b)			Range (Weighted Average)(c)
Assets:
Obligations of states, municipalities and political subdivisions						$			3			Discounted cash flow			Yield			5.09% - 5.57% (5.33%)
Corporate debt									177			Discounted cash flow			Yield			6.83% - 11.61% (9.22%)
RMBS(a)									1,321			Discounted cash flow			Constant prepayment rate			4.10% - 9.26% (6.68%)
															Loss severity			40.81% - 76.72% (58.76%)
															Constant default rate			0.57% - 2.48% (1.52%)
															Yield			5.89% - 6.98% (6.44%)
CLO/ABS(a)									760			Discounted cash flow			Yield			4.24% - 8.42% (6.33%)
CMBS									25			Discounted cash flow			Yield			7.04% - 10.12% (8.70%)

AIG | 2025 Form 10-K			105

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

(a)Information received from third-party valuation service providers. The ranges of the unobservable inputs for constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CLO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by us, because there are other factors relevant to the fair values of specific tranches owned by us including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points.

(b)Represents discount rates, estimates and assumptions that we believe would be used by market participants when valuing these assets and liabilities.

(c)The weighted averaging for fixed maturity securities is based on the estimated fair value of the securities.

The ranges of reported inputs for Obligations of states, municipalities and political subdivisions, Corporate debt, RMBS, CLO/ABS, and CMBS valued using a discounted cash flow technique consist of one standard deviation in either direction from the value‑weighted average. The preceding table does not give effect to our risk management practices that might offset risks inherent in these Level 3 assets and liabilities.

Interrelationships Between Unobservable Inputs

We consider unobservable inputs to be those for which market data is not available and that are developed using the best information available to us about the assumptions that market participants would use when pricing the asset or liability. Relevant inputs vary depending on the nature of the instrument being measured at fair value. The following paragraphs provide a general description of significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. In practice, simultaneous changes in assumptions may not always have a linear effect on the inputs discussed below. Interrelationships may also exist between observable and unobservable inputs. Such relationships have not been included in the discussion below. For each of the individual relationships described below, the inverse relationship would also generally apply.

Fixed Maturity Securities

The significant unobservable input used in the fair value measurement of fixed maturity securities is yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. The yield may be affected by other factors including constant prepayment rates, loss severity, and constant default rates. In general, increases in the yield would decrease the fair value of investments, and conversely, decreases in the yield would increase the fair value of investments.

Embedded Derivatives within Reinsurance Contracts

The fair value of embedded derivatives associated with funds withheld reinsurance contracts is determined based upon a total return swap technique with reference to the fair value of the investments held by AIG related to AIG’s funds withheld payable. The fair value of the underlying assets is generally based on market observable inputs using industry standard valuation techniques. The valuation also requires certain significant inputs, which are generally not observable, and accordingly, the valuation is considered Level 3 in the fair value hierarchy.

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

The following table includes information related to our investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate net asset value per share (or its equivalent). For these investments, which are measured at fair value on a recurring basis, we use the net asset value per share to measure fair value.

									December 31, 2025															December 31, 2024
(in millions)			Investment Category Includes						Fair Value Using NAV Per Share (or its equivalent)						Unfunded Commitments									Fair Value Using NAV Per Share (or its equivalent)						Unfunded Commitments
Investment Category
Private equity funds:
Leveraged buyout			Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage			$			1,142			$			450						$			1,126			$			375
Real assets			Investments in real estate properties, agricultural and infrastructure assets, including power plants and other energy producing assets						496						67									782						261
Venture capital			Early-stage, high-potential, growth companies expected to generate a return through an eventual realization event, such as an initial public offering or sale of the company						87						31									83						40
Growth equity			Funds that make investments in established companies for the purpose of growing their businesses						172						11									175						1

106			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

									December 31, 2025															December 31, 2024
(in millions)			Investment Category Includes						Fair Value Using NAV Per Share (or its equivalent)						Unfunded Commitments									Fair Value Using NAV Per Share (or its equivalent)						Unfunded Commitments
Mezzanine			Funds that make investments in the junior debt and equity securities of leveraged companies						92						54									120						58
Other			Includes distressed funds that invest in securities of companies that are in default or under bankruptcy protection, as well as funds that have multi- strategy, and other strategies						1,101						653									819						57
Total private equity funds									3,090						1,266									3,105						792
Hedge funds:
Event-driven			Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations						10						—									11						—
Long-short			Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk						155						—									168						—
Other			Includes investments held in funds that are less liquid, as well as other strategies which allow for broader allocation between public and private investments						9						—									8						—
Total hedge funds									174						—									187						—
Total						$			3,264			$			1,266						$			3,292			$			792

Private equity fund investments included above are not redeemable, because distributions from the funds will be received when underlying investments of the funds are liquidated. Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one-year or two-year increments.

FAIR VALUE OPTION

Under the fair value option, we may elect to measure at fair value financial assets and financial liabilities that are not otherwise required to be carried at fair value. Subsequent changes in fair value for designated items are reported in earnings. We elect the fair value option for certain hybrid securities given the complexity of bifurcating the economic components associated with the embedded derivatives.

For additional information related to embedded derivatives, see Note 11.

Additionally, we elect the fair value option for certain alternative investments when such investments are eligible for this election. We believe this measurement basis is consistent with the applicable accounting guidance used by the respective investment company funds themselves.

For additional information on securities and other invested assets for which we have elected the fair value option, see Note 6.

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

Years Ended December 31,									Gain (Loss)
(in millions)																					2025						2024						2023
Other bond securities(a)																		$			52			$			19			$			46
Alternative investments(b)																					190						257						220
Retained investment in Corebridge(c)																					187						439						—
Total gain (loss)																		$			429			$			715			$			266

(a)Includes certain securities supporting the funds withheld arrangements with Fortitude Re. For additional information regarding the gains and losses for Other bond securities, see Note 6. For additional information regarding the funds withheld arrangements with Fortitude Re, see Note 8.

(b)Includes certain hedge funds, private equity funds and real estate investments.

(c)Represents the impact of changes in Corebridge stock price on the value of AIG's ownership interest in Corebridge and gain/loss on sale of shares.

Interest income and dividend income on assets measured under the fair value option are recognized and included in Net investment income in the Consolidated Statements of Income. Interest expense on liabilities measured under the fair value option is reported in Other Income in the Consolidated Statements of Income.

For additional information about our policies for recognition, measurement, and disclosure of interest and dividend income, see Note 6.

AIG | 2025 Form 10-K			107

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

FAIR VALUE INFORMATION ABOUT FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE

Information regarding the estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts and lease contracts) is discussed below:

• Mortgage and other loans receivable:** Fair values of loans on commercial real estate and other loans receivable are estimated for disclosure purposes using discounted cash flow calculations based on discount rates that we believe market participants would use in determining the price that they would pay for such assets. For certain loans, our current incremental lending rates for similar types of loans are used as the discount rates, because we believe this rate approximates the rates market participants would use. Fair values of residential mortgage loans are generally determined based on market prices, using market based adjustments for credit and servicing as appropriate. The fair values of policy loans are generally estimated based on unpaid principal amount as of each reporting date. No consideration is given to credit risk because policy loans are effectively collateralized by the cash surrender value of the policies.

• Other invested assets:** The majority of the Other invested assets that are not measured at fair value represent time deposits with the original maturity at purchase greater than one year. The fair value of long-term time deposits is determined using the expected discounted future cash flow.

• Cash and short-term investments:** The carrying amounts of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk.

• Other liabilities:** The majority of Other liabilities that are financial instruments not measured at fair value represent secured financing arrangements, including repurchase agreements. The carrying amounts of these liabilities approximate fair value, because the financing arrangements are short-term and are secured by cash or other liquid collateral.

• Fortitude Re funds withheld payable:** The funds withheld payable contains an embedded derivative and the changes in its fair value are recognized in earnings each period. The difference between the total Fortitude Re funds withheld payable and the embedded derivative represents the host contract.

• Long-term debt and Debt of consolidated investment entities:** Fair values of these obligations were determined by reference to quoted market prices, when available and appropriate, or discounted cash flow calculations based upon our current market‑observable implicit‑credit‑spread rates for similar types of borrowings with maturities consistent with those remaining for the debt being valued.

The following table presents the carrying amounts and estimated fair values of our financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

						Estimated Fair Value																								Carrying Value
(in millions)						Level 1						Level 2						Level 3						Total
December 31, 2025
Assets:
Mortgage and other loans receivable			$			—			$			334			$			2,500			$			2,834			$			2,887
Other invested assets						—						480						13						493						493
Short-term investments						—						5,232						—						5,232						5,232
Cash						1,274						—						—						1,274						1,274
Other assets						16						—						—						16						16
Liabilities:
Fortitude Re funds withheld payable						—						—						3,130						3,130						3,130
Long-term debt						—						8,702						—						8,702						9,035
Debt of consolidated investment entities						—						—						156						156						156

108			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 5. Fair Value Measurements

						Estimated Fair Value																								Carrying Value
(in millions)						Level 1						Level 2						Level 3						Total
December 31, 2024
Assets:
Mortgage and other loans receivable			$			—			$			339			$			3,413			$			3,752			$			3,868
Other invested assets						—						578						5						583						583
Short-term investments						—						4,673						—						4,673						4,673
Cash						1,302						—						—						1,302						1,302
Other assets						15						—						—						15						15
Liabilities:
Fortitude Re funds withheld payable						—						—						3,335						3,335						3,335
Long-term debt						—						7,981						240						8,221						8,764
Debt of consolidated investment entities						—						—						158						158						158

6. Investments

FIXED MATURITY SECURITIES

Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or the fair value option has been elected. None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2025 or 2024.

Unrealized gains and losses from available for sale investments in fixed maturity securities carried at fair value were reported as a separate component of AOCI, net of deferred income taxes, in shareholders’ equity. Realized and unrealized gains and losses from fixed maturity securities for which the fair value option has been elected are reflected in Net investment income. Investments in fixed maturity securities are recorded on a trade-date basis.

Interest income is recognized using the effective yield method and reflects amortization of premium and accretion of discount. Premiums and discounts arising from the purchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain structured securities, recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that are not high credit quality, the structured securities yields are based on expected cash flows which take into account both expected credit losses and prepayments.

An allowance for credit losses is not established upon initial recognition of the asset (unless the security is determined to be a purchased credit deteriorated (PCD) asset which is discussed in more detail below). Subsequently, differences between actual and expected cash flows and changes in expected cash flows are recognized as adjustments to the allowance for credit losses. Changes that cannot be reflected as adjustments to the allowance for credit losses are accounted for as prospective adjustments to yield.

SECURITIES AVAILABLE FOR SALE

The following table presents the amortized cost and fair value of our available for sale securities:

(in millions)						Amortized Cost						Allowance for Credit Losses(a)						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
December 31, 2025
Bonds available for sale:
U.S. government and government sponsored entities			$			3,353			$			—			$			31			$			(86)			$			3,298
Obligations of states, municipalities and political subdivisions						2,757						—						71						(53)						2,775
Non-U.S. governments						6,799						(1)						86						(368)						6,516
Corporate debt						37,746						(31)						576						(1,056)						37,235
Mortgage-backed, asset-backed and collateralized:
RMBS						10,137						(4)						294						(259)						10,168
CMBS						4,585						—						67						(36)						4,616

AIG | 2025 Form 10-K			109

ITEM 8 | Notes to Consolidated Financial Statements | 6. Investments

(in millions)						Amortized Cost						Allowance for Credit Losses(a)						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
CLO/ABS						6,395						(1)						53						(23)						6,424
Total mortgage-backed, asset-backed and collateralized						21,117						(5)						414						(318)						21,208
Total bonds available for sale**(b)**			$			71,772			$			(37)			$			1,178			$			(1,881)			$			71,032
December 31, 2024
Bonds available for sale:
U.S. government and government sponsored entities			$			3,346			$			—			$			20			$			(99)			$			3,267
Obligations of states, municipalities and political subdivisions						3,223						—						32						(112)						3,143
Non-U.S. governments						8,644						(1)						54						(590)						8,107
Corporate debt						33,031						(28)						581						(1,758)						31,826
Mortgage-backed, asset-backed and collateralized:
RMBS						8,820						(6)						209						(419)						8,604
CMBS						3,988						(3)						32						(91)						3,926
CLO/ABS						5,143						—						34						(44)						5,133
Total mortgage-backed, asset-backed and collateralized						17,951						(9)						275						(554)						17,663
Total bonds available for sale**(b)**			$			66,195			$			(38)			$			962			$			(3,113)			$			64,006

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

(b)At December 31, 2025 and 2024, the fair value of bonds available for sale held by us that were below investment grade or not rated totaled $5.9 billion or 8 percent and $3.6 billion or 6 percent, respectively.

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

The following table summarizes the fair value and gross unrealized losses on our available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit loss has been recorded:

						Less than 12 Months												12 Months or More												Total
(in millions)						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses						Fair Value						Gross Unrealized Losses
December 31, 2025
Bonds available for sale:
U.S. government and government sponsored entities			$			167			$			8			$			322			$			78			$			489			$			86
Obligations of states, municipalities and political subdivisions						232						8						515						45						747						53
Non-U.S. governments						1,524						33						1,347						336						2,871						369
Corporate debt						6,031						125						8,165						927						14,196						1,052
RMBS						769						8						1,764						241						2,533						249
CMBS						580						6						523						30						1,103						36
CLO/ABS						883						5						232						18						1,115						23
Total bonds available for sale			$			10,186			$			193			$			12,868			$			1,675			$			23,054			$			1,868

December 31, 2024
Bonds available for sale:
U.S. government and government sponsored entities			$			1,718			$			21			$			358			$			78			$			2,076			$			99
Obligations of states, municipalities and political subdivisions						1,502						33						586						79						2,088						112
Non-U.S. governments						1,964						55						3,446						534						5,410						589
Corporate debt						10,347						234						10,907						1,515						21,254						1,749
RMBS						3,711						58						2,147						343						5,858						401
CMBS						1,052						18						992						71						2,044						89
CLO/ABS						1,368						9						315						35						1,683						44
Total bonds available for sale			$			21,662			$			428			$			18,751			$			2,655			$			40,413			$			3,083

At December 31, 2025, we held 7,526 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 4,065 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). At December 31, 2024, we held 12,274 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 5,984 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). We did not recognize the unrealized losses in earnings on these fixed maturity securities at December 31, 2025 because it was determined that such losses were due to non-credit factors. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to

110			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 6. Investments

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

Contractual Maturities of Fixed Maturity Securities Available for Sale

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

December 31, 2025						Total Fixed Maturity Securities Available for Sale
(in millions)						Amortized Cost, Net of Allowance						Fair Value
Due in one year or less						$	4,863					$	4,840
Due after one year through five years						23,137						23,211
Due after five years through ten years						16,521						16,435
Due after ten years						6,102						5,338
Mortgage-backed, asset-backed and collateralized						21,112						21,208
Total						$	71,735					$	71,032

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties.

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

									Years Ended December 31,
															2025															2024															2023
(in millions)																																				Gross Realized Gains						Gross Realized Losses									Gross Realized Gains						Gross Realized Losses									Gross Realized Gains						Gross Realized Losses
Fixed maturity securities																																	$			72			$			665						$			81			$			700						$			130			$			865

For the years ended December 31, 2025, 2024 and 2023, the aggregate fair value of available for sale securities sold was $12.4 billion, $13.7 billion and $15.7 billion, respectively, which resulted in net realized gains (losses) of $(593) million, $(619) million and $(735) million, respectively. Included within the net realized gains (losses) are $(70) million, $(36) million and $(67) million of net realized gains (losses) for the years ended December 31, 2025, 2024 and 2023, respectively, which relate to Fortitude Re funds withheld assets. These net realized gains (losses) are included in Net realized gains (losses) on Fortitude Re funds withheld assets.

OTHER SECURITIES MEASURED AT FAIR VALUE

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

(in millions)									December 31, 2025																		December 31, 2024
			Fair Value						Percent of Total												Fair Value						Percent of Total
Fixed maturity securities:
Obligations of states, municipalities and political subdivisions						$			51						4			%						$			50						3			%
Non-U.S. governments									23						2												24						2
Corporate debt									274						22												282						19
Mortgage-backed, asset-backed and collateralized:
RMBS									97						8												100						7
CMBS									42						3												43						3
CLO/ABS and other collateralized securities									254						20												246						17
Total mortgage-backed, asset-backed and collateralized									393						31												389						27
Total fixed maturity securities									741						59												745						51
Equity securities									502						41												704						49
Total						$			1,243						100			%						$			1,449						100			%

AIG | 2025 Form 10-K			111

ITEM 8 | Notes to Consolidated Financial Statements | 6. Investments

OTHER INVESTED ASSETS

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

(in millions)			December 31, 2025						December 31, 2024
Alternative investments(a)			$	3,456					$	4,032
Retained investment in Corebridge using fair value option			1,512						3,810
All other investments(b)			1,728						1,986
Total			$	6,696					$	9,828

(a)At December 31, 2025, includes hedge funds of $175 million and private equity funds of $3.0 billion. At December 31, 2024, included hedge funds of $187 million and private equity funds of $3.6 billion. Private equity funds investments include limited partnerships, direct equities and real estate partnerships. Also includes investments in real estate, net of accumulated depreciation. At December 31, 2025 and 2024, the accumulated depreciation was $142 million and $161 million, respectively.

(b)All other investments include bank deposits with a maturity greater than one year and investments in joint ventures with strategic partners, including $300 million in DaVinciRe Holdings Ltd, Class D, which is recorded as a measurement alternative equity security at both December 31, 2025 and 2024.

Other Invested Assets Carried at Fair Value

Certain hedge funds, private equity funds, and other investment partnerships for which we have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income.

Other Invested Assets – Equity Method Investments

We account for hedge funds, private equity funds and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating and financial policies, or we have elected the fair value option. Under the equity method of accounting, our carrying amount generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income. In applying the equity method of accounting, we consistently use the most recently available financial information provided by the general partner or manager of each of these investments. Hedge funds are reported as of the balance sheet date. Private equity funds are generally reported on a one-quarter lag. The financial statements of these investees are generally audited annually. The carrying amount of equity method investments totaled $3.7 billion and $6.6 billion as of December 31, 2025 and 2024, respectively.

Summarized Financial Information of Equity Method Investees

The following is the aggregated summarized financial information of our equity method investees, including those for which the fair value option has been elected:

Years Ended December 31,
(in millions)						2025*						2024*						2023
Operating results:
Total revenues			$			20,079			$			21,860			$			2,320
Total expenses						(20,386)						(18,557)						(1,668)
Income before income taxes			$			(307)			$			3,303			$			652
At December 31,
(in millions)												2025						2024
Balance sheet:
Total assets									$			435,050			$			418,639
Total liabilities									$			(402,711)			$			(383,643)

*2025 and 2024 include investment in Corebridge.

Other Investments

Also included in Other invested assets is real estate held for investment. These investments are reported at cost, less depreciation and are subject to impairment review, as discussed below.

112			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 6. Investments

NET INVESTMENT INCOME

Net investment income represents income primarily from the following sources:

• Interest income and related expenses, including amortization of premiums and accretion of discounts with changes in the timing and the amount of expected principal and interest cash flows reflected in yield, as applicable.

• Dividend income from common and preferred stocks.

• Realized and unrealized gains and losses from investments in other securities and investments for which we elected the fair value option.

• Earnings from alternative investments.

• Prepayment premiums.

The following table presents the components of Net investment income:

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
Available for sale fixed maturity securities, including short-term investments			$			3,446			$			72			$			3,518						$			2,989			$			89			$			3,078						$			2,862			$			95			$			2,957
Other fixed maturity securities						—						51						51									—						19						19									3						43						46
Equity securities						82						—						82									149						—						149									53						—						53
Interest on mortgage and other loans						167						25						192									229						32						261									283						38						321
Alternative investments(a)						273						—						273									196						—						196									199						—						199
Other investments(b)						268						1						269									727						4						731									101						4						105
Total investment income						4,236						149						4,385									4,290						144						4,434									3,501						180						3,681
Investment expenses						170						—						170									179						—						179									235						—						235
Net investment income			$			4,066			$			149			$			4,215						$			4,111			$			144			$			4,255						$			3,266			$			180			$			3,446

(a)Includes income from hedge funds, private equity funds and real estate investments. Hedge funds are generally reported on a one-month lag. Private equity funds are generally reported on a one-quarter lag.

(b)Includes dividends received from Corebridge, changes in the fair value of AIG's investment in Corebridge and gain/loss on sale of shares of $90 million and $187 million, respectively, for the year ended December 31, 2025 and $162 million and $439 million, respectively, for the year ended December 31, 2024.

NET REALIZED GAINS AND LOSSES

Net realized gains and losses are determined by specific identification. The net realized gains and losses are generated primarily from the following sources:

• Sales of available for sale fixed maturity securities, real estate and other alternative investments.

• Reductions to the amortized cost basis of available for sale fixed maturity securities that have been written down due to our intent to sell them or it being more likely than not that we will be required to sell them.

• Changes in the allowance for credit losses on bonds available for sale, mortgage and other loans receivable, and loan commitments.

• Most changes in the fair value of free standing and embedded derivatives, including changes in the non-performance adjustment are included in Net realized gains (losses). However, changes in derivatives designated as hedging instruments when the fair value of the hedged item is not reported in Net realized gains (losses) are excluded from Net realized gains (losses).

• Foreign exchange gains and losses resulting from foreign currency transactions.

• Changes in fair value of the embedded derivative related to the Fortitude Re funds withheld assets.

AIG | 2025 Form 10-K			113

ITEM 8 | Notes to Consolidated Financial Statements | 6. Investments

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.

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS

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

									Years Ended December 31,
(in millions)																					2025						2024
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities																		$			1,448			$			692
Total increase (decrease) in unrealized appreciation (depreciation) of investments*																		$			1,448			$			692

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

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

Years Ended December 31,						2025																					2024
(in millions)						Equities						Other Invested Assets*						Total									Equities						Other Invested Assets*						Total
Net gains recognized during the period on equity securities and other investments						$	68					$	412					$	480								$	149					$	696					$	845
Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period						26						(200)						(174)									45						461						506
Unrealized gains recognized during the reporting period on equity securities and other investments still held at the reporting date						$	42					$	612					$	654								$	104					$	235					$	339

*Includes unrealized gains (losses) on changes in the fair value of AIG's investment in Corebridge and gain/loss on sale of shares of $187 million and $439 million in the years ended December 31, 2025 and 2024, respectively.

EVALUATING INVESTMENTS FOR AN ALLOWANCE FOR CREDIT LOSSES AND IMPAIRMENTS

Fixed Maturity Securities

If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and if the fair value of the security is below amortized cost, an impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to Net realized gains (losses). No allowance is established in these situations and any previously recorded allowance is reversed. The new cost basis is not adjusted for subsequent increases in estimated fair value. When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing.

114			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 6. Investments

For fixed maturity securities for which a decline in the fair value below the amortized cost is due to credit related factors, an allowance is established for the difference between the estimated recoverable value and amortized cost with a corresponding charge to Net realized gains (losses). The allowance for credit losses is limited to the difference between amortized cost and fair value. The estimated recoverable value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not associated with credit related factors is presented in unrealized appreciation (depreciation) of fixed maturity securities on which an allowance for credit losses was previously recognized (a separate component of AOCI). Accrued interest is excluded from the measurement of the allowance for credit losses.

When estimating future cash flows for structured fixed maturity securities (e.g., RMBS, CMBS, CLO, ABS) management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class:

• Current delinquency rates;

• Expected default rates and the timing of such defaults;

• Loss severity and the timing of any recovery; and

• Expected prepayment speeds.

When estimating future cash flows for corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers:

• Expected default rates and the timing of such defaults;

• Loss severity and the timing of any recovery; and

• Scenarios specific to the issuer and the security, which may also include estimates of outcomes of corporate restructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets.

We consider severe price declines in our assessment of potential credit impairments. We may also modify our model inputs when we determine that price movements in certain sectors are indicative of factors not captured by the cash flow models.

Under the current expected credit loss (CECL) model, credit losses are reassessed each period. The allowance for credit losses and the corresponding charge to Net realized gains (losses) can be reversed if conditions change, however, the allowance for credit losses will never be reduced below zero. When we determine that all or a portion of a fixed maturity security is uncollectable, the uncollectable amortized cost amount is written off with a corresponding reduction to the allowance for credit losses. If we collect cash flows that were previously written off, the recovery is recognized by recording a gain in Net realized gains (losses).

Credit Impairments

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

Years Ended December 31,			2025																					2024																					2023
(in millions)			Structured						Non- Structured									Total						Structured						Non- Structured									Total						Structured						Non- Structured									Total
Balance, beginning of year			$			10			$			28			$			38						$			13			$			21			$			34						$			20			$			17			$			37
Additions:
Securities for which allowance for credit losses was not previously recorded						1						27						28									5						10						15									6						46						52
Reductions:
Securities sold during the period						—						(12)						(12)									(4)						(2)						(6)									(3)						(9)						(12)
Addition to (release of) the allowance for credit losses on securities that had an allowance recorded in a previous period, for which there was no intent to sell before recovery of amortized cost basis						(1)						5						4									(3)						13						10									(1)						(7)						(8)
Write-offs charged against the allowance						(5)						(15)						(20)									—						(24)						(24)									(11)						(26)						(37)
Other						—						(1)						(1)									(1)						10						9									2						—						2
Balance, end of year			$			5			$			32			$			37						$			10			$			28			$			38						$			13			$			21			$			34

AIG | 2025 Form 10-K			115

ITEM 8 | Notes to Consolidated Financial Statements | 6. Investments

Purchased Credit Deteriorated Securities

We purchase certain RMBS that have experienced more-than-insignificant deterioration in credit quality since origination. These are referred to as PCD assets. At the time of purchase an allowance is recognized for these PCD assets by adding it to the purchase price to arrive at the initial amortized cost. There is no credit loss expense recognized upon acquisition of a PCD asset. When determining the initial allowance for credit losses, management considers the historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and the priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs:

• Current delinquency rates;

• Expected default rates and the timing of such defaults;

• Loss severity and the timing of any recovery; and

• Expected prepayment speeds.

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

We did not purchase securities with more than insignificant credit deterioration since their origination during the years ended December 31, 2025, 2024 and 2023.

Other Invested Assets

Our equity method investments in private equity funds, hedge funds and other entities are evaluated for impairment each reporting period. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investments and specific inherent risks. Such risks may evolve based on the nature of the underlying investments. For more information, see Net Realized Gains and Losses.

Our investments in real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compare expected investment cash flows to carrying amount. When the expected cash flows are less than the carrying amount, the investments are written down to fair value with a corresponding charge to earnings.

PLEDGED INVESTMENTS

Secured Financing and Similar Arrangements

We enter into secured financing transactions whereby certain securities are sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. Our secured financing transactions also include those that involve the transfer of securities to financial institutions in exchange for cash (securities lending agreements). In all of these secured financing transactions, the securities transferred by us (pledged collateral) may be sold or repledged by the counterparties. These agreements are recorded at their contracted amounts plus accrued interest, other than those that are accounted for at fair value.

Pledged collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the amounts borrowed during the life of the transactions. In the event of a decline in the fair value of the pledged collateral under these secured financing transactions, we may be required to transfer cash or additional securities as pledged collateral under these agreements. At the termination of the transactions, we and our counterparties are obligated to return the amounts borrowed and the securities transferred, respectively.

We also enter into agreements in which securities are purchased by us under reverse repurchase agreements, which are accounted for as secured financing transactions and reported as short-term investments or other assets, depending on their terms. These agreements are recorded at their contracted resale amounts plus accrued interest, other than those that are accounted for at fair value. In all reverse repurchase transactions, we take possession of or obtain a security interest in the related securities, and we have the right to sell or repledge this collateral received.

At December 31, 2025 and 2024, the fair value of securities pledged to us under reverse repurchase agreements totaled $3.6 billion and $2.9 billion, respectively, and the carrying value of reverse repurchase agreements totaled $3.6 billion and $2.8 billion, respectively.

All secured financing transactions are collateralized and margined on a daily basis consistent with market standards and subject to enforceable master netting arrangements with rights of set off. We do not currently offset any such transactions.

116			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 6. Investments

Insurance – Statutory and Other Deposits

The total carrying value of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements and certain reinsurance contracts was $7.7 billion and $7.8 billion at December 31, 2025 and 2024, respectively.

Other Pledges and Restrictions

Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs. We owned an aggregate of $14 million and $13 million of stock in FHLBs at December 31, 2025 and 2024, respectively. In addition, our subsidiaries have pledged securities available for sale with a fair value of $2.4 billion at December 31, 2025 and $1.6 billion at December 31, 2024.

Investments held in escrow accounts or otherwise subject to restriction as to their use were $54 million and $73 million, comprised of short-term investments at December 31, 2025, and bonds available for sale and short-term investments at December 31, 2024.

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

7. Lending Activities

Mortgage and other loans receivable include commercial mortgages, life insurance policy loans, commercial loans, and other loans and notes receivable. Commercial mortgages, commercial loans, and other loans and notes receivable are carried at unpaid principal balances less allowance for credit losses and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned.

Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method.

Life insurance policy loans are carried at unpaid principal balances. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy.

On December 14, 2022, AIG announced that its wholly-owned subsidiary, AIG Financial Products Corp. (AIGFP), filed a voluntary petition to reorganize under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware and filed a proposed plan of reorganization. The reorganization will not have a material impact on the consolidated balance sheets of AIG or our respective businesses. AIGFP has no material operations or businesses and no employees. In conjunction with the bankruptcy filing, AIGFP and its consolidated subsidiaries were deconsolidated from the results of AIG, resulting in a pre-tax loss of $114 million for the year ended December 31, 2022, reported in Net gain (loss) on divestitures and other. In addition, AIGFP and its subsidiaries were determined to be an unconsolidated variable interest entity.

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

(in millions)			December 31, 2025						December 31, 2024
Commercial mortgages(a)			$	2,495					$	3,305
Life insurance policy loans			4						6
Commercial loans, other loans and notes receivable(b)			499						721
Total mortgage and other loans receivable**(c)**			2,998						4,032
Allowance for credit losses(c)(d)			(111)						(164)
Mortgage and other loans receivable, net**(c)**			$	2,887					$	3,868

(a)Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in California and New York representing the largest geographic concentrations (aggregating approximately 14 percent and 13 percent, respectively, at December 31, 2025 and 14 percent and 12 percent, respectively, at December 31, 2024).

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

(c)Excludes $37.6 billion at both December 31, 2025 and 2024 of loans receivable from AIGFP, which has a full allowance for credit losses, recognized upon the deconsolidation of AIGFP.

(d)Does not include allowance for credit losses of $0 million and $8 million at December 31, 2025 and 2024, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

AIG | 2025 Form 10-K			117

ITEM 8 | Notes to Consolidated Financial Statements | 7. Lending Activities

Interest income is not accrued when payment of contractual principal and interest is not expected. Any cash received on impaired loans is generally recorded as a reduction of the current carrying amount of the loan. Accrual of interest income is generally resumed when delinquent contractual principal and interest is repaid or when a portion of the delinquent contractual payments are made and the ongoing required contractual payments have been made for an appropriate period. As of December 31, 2025 and 2024, $160 million and $252 million, respectively, of commercial mortgage loans were placed on nonaccrual status.

Accrued interest is presented separately and is included in Accrued investment income on the Consolidated Balance Sheets. As of December 31, 2025 and 2024, accrued interest receivable associated with commercial mortgage loans was $11 million and $15 million, respectively.

A significant majority of commercial mortgages in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for us to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan.

Nonperforming loans are generally those loans where payment of contractual principal or interest is more than 90 days past due. Nonperforming loans were not significant for any of the periods presented.

CREDIT QUALITY OF COMMERCIAL MORTGAGES

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

December 31, 2025						2025						2024						2023						2022						2021						Prior						Total
(in millions)
>1.2X			$			14			$			38			$			196			$			117			$			538			$			1,237			$			2,140
1.00 - 1.20X						—						—						28						—						29						147						204
<1.00X						—						—						5						—						25						121						151
Total commercial mortgages			$			14			$			38			$			229			$			117			$			592			$			1,505			$			2,495

December 31, 2024						2024						2023						2022						2021						2020						Prior						Total
(in millions)
>1.2X			$			120			$			484			$			185			$			563			$			79			$			1,482			$			2,913
1.00 - 1.20X						26						10						15						17						—						49						117
<1.00X						—						—						—						32						—						243						275
Total commercial mortgages			$			146			$			494			$			200			$			612			$			79			$			1,774			$			3,305

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

December 31, 2025						2025						2024						2023						2022						2021						Prior						Total
(in millions)
Less than 65%			$			14			$			38			$			213			$			94			$			468			$			808			$			1,635
65% to 75%						—						—						11						—						68						463						542
76% to 80%						—						—						—						—						9						—						9
Greater than 80%						—						—						5						23						47						234						309
Total commercial mortgages			$			14			$			38			$			229			$			117			$			592			$			1,505			$			2,495
December 31, 2024						2024						2023						2022						2021						2020						Prior						Total
(in millions)
Less than 65%			$			107			$			433			$			177			$			485			$			71			$			1,012			$			2,285
65% to 75%						—						40						—						54						—						317						411
76% to 80%						—						—						—						31						—						51						82
Greater than 80%						39						21						23						42						8						394						527
Total commercial mortgages			$			146			$			494			$			200			$			612			$			79			$			1,774			$			3,305

(a)The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 1.8x at both December 31, 2025 and December 31, 2024. The debt service coverage ratios are updated when additional relevant information becomes available.

(b)The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 71 percent and 65 percent at December 31, 2025 and December 31, 2024, respectively. The loan-to-value ratios have been updated within the last three months to reflect the current carrying values of the loans. We update the valuations of collateral properties by obtaining independent appraisals, generally at least once per year.

118			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 7. Lending Activities

The following table presents supplementary credit quality information related to commercial mortgages:

			Number of Loans						Class																																							Percent of Total
(dollars in millions)						Apartments						Offices						Retail						Industrial						Hotel						Others						Total
December 31, 2025
Past Due Status:
In good standing			140			$			793			$			947			$			297			$			158			$			191			$			10			$			2,396			96			%
90 days or less delinquent			1						—						9						—						—						—						—						9			—
>90 days delinquent or in process of foreclosure			4						—						30						60						—						—						—						90			4
Total*			145			$			793			$			986			$			357			$			158			$			191			$			10			$			2,495			100			%
Allowance for credit losses						$			2			$			62			$			37			$			—			$			10			$			—			$			111			4			%

			Number of Loans						Class																																							Percent of Total
(dollars in millions)						Apartments						Offices						Retail						Industrial						Hotel						Others						Total
December 31, 2024
Past Due Status:
In good standing			186			$			1,087			$			971			$			370			$			301			$			258			$			119			$			3,106			94			%
90 days or less delinquent			1						—						25						—						—						—						—						25			1
>90 days delinquent or in process of foreclosure			3						—						112						62						—						—						—						174			5
Total*			190			$			1,087			$			1,108			$			432			$			301			$			258			$			119			$			3,305			100			%
Allowance for credit losses						$			5			$			99			$			34			$			11			$			13			$			1			$			163			5			%

*Does not reflect allowance for credit losses.

METHODOLOGY USED TO ESTIMATE THE ALLOWANCE FOR CREDIT LOSSES

At the time of origination or purchase, an allowance for credit losses is established for mortgage and other loan receivables and is updated each reporting period. Changes in the allowance for credit losses are recorded in realized losses. This allowance reflects the risk of loss, even when that risk is remote, that is expected over the remaining contractual life of the loan. The allowance for credit losses considers available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts of future economic conditions. We revert to historical information when we determine that we can no longer reliably forecast future economic assumptions.

The allowances for the commercial mortgage loans are estimated utilizing a probability of default and loss given default model. Loss rate factors are determined based on historical data and adjusted for current and forecasted information. The loss rates are applied based on individual loan attributes and considering such data points as loan-to-value ratios, Fair Isaac Corporation scores, and debt service coverage.

The estimate of credit losses also reflects management’s assumptions on certain macroeconomic factors that include, but are not limited to, gross domestic product growth, employment, inflation, housing price index, interest rates and credit spreads.

Accrued interest is excluded from the measurement of the allowance for credit losses and accrued interest is reversed through interest income once a loan is placed on nonaccrual.

When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance.

We also have off-balance sheet commitments related to our commercial mortgage loans. The liability for expected credit losses related to these commercial mortgage loan commitments is reported in Other liabilities in the Consolidated Balance Sheets. When a commitment is funded, we record a loan receivable and reclassify the liability for expected credit losses related to the commitment into loan allowance for expected credit losses. Other changes in the liability for expected credit losses on loan commitments are recorded in Net realized gains (losses) in the Consolidated Statements of Income (Loss).

AIG | 2025 Form 10-K			119

ITEM 8 | Notes to Consolidated Financial Statements | 7. Lending Activities

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

Years Ended December 31,						2025															2024															2023
(in millions)						Commercial Mortgages						Other Loans						Total									Commercial Mortgages						Other Loans						Total									Commercial Mortgages						Other Loans						Total
Allowance, beginning of year						$	163					$	1					$	164								$	138					$	2					$	140								$	109					$	8					$	117
Loans charged off						(60)						—						(60)									—						—						—									(2)						—						(2)
Net charge-offs						(60)						—						(60)									—						—						—									(2)						—						(2)
Addition to (release of) allowance for loan losses						8						(1)						7									25						(1)						24									31						(6)						25
Allowance, end of year						$	111					$	—					$	111								$	163					$	1					$	164								$	138					$	2					$	140

(a)Does not include allowance for credit losses of $0 million, $8 million and $9 million, respectively, at December 31, 2025, 2024 and 2023 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

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

Our expectations and models used to estimate the allowance for losses on commercial mortgage loans are regularly updated to reflect the current economic environment.

LOAN MODIFICATIONS

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. We use a probability of default/loss given default model to determine the allowance for credit losses for our commercial mortgage loans. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses utilizing the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification.

When modifications are executed, they often will be in the form of principal forgiveness, term extensions, interest rate reductions, or some combination of any of these concessions. When principal is forgiven, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses.

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

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

AIG closely monitors the performance of the loans modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. All loans with borrowers experiencing financial difficulty that were modified in the 12 months prior to December 31, 2025 are current and performing in accordance with their modified terms.

8. Reinsurance

In the ordinary course of business, our insurance companies purchase both treaty and facultative reinsurance to limit potential losses, provide additional capacity for growth, minimize exposure to significant risks or to facilitate greater diversification of our businesses. In addition, certain of our General Insurance subsidiaries sell reinsurance to other insurance companies. We determine the portion of our ultimate net loss that will be recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination involves an estimate of incurred but not reported (IBNR) loss. Reinsurance recoverables for contracts which are accounted for as deposits are subject to similar judgments and uncertainties and reported in Deposit accounting assets.

Reinsurance assets include the balances due for paid losses and expenses, reserves for losses and expenses reported and outstanding, reserves for IBNR, ceded unearned premiums and ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and reserved losses and expenses and benefits with respect to these reinsurance agreements are sometimes collateralized. We remain liable to our policyholders regardless of whether our reinsurers

120			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 8. Reinsurance

meet their obligations under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The estimation of the allowance for unrecoverable reinsurance from reinsurers who are unwilling and/or unable to pay amounts due to us requires judgment for which key inputs typically include historical collection rates when amounts due are in dispute or where the reinsurer has suffered a credit event as well as specific reviews of balances in dispute or subject to credit impairment. The allowance for credit losses and disputes on reinsurance assets was $248 million and $220 million at December 31, 2025 and 2024, respectively. Changes in the allowance for credit losses and disputes on reinsurance assets are reflected in Losses and loss adjustment expenses incurred within the Consolidated Statements of Income (Loss).

The following table provides supplemental information for loss and benefit reserves, gross and net of ceded reinsurance:

At December 31,			2025															2024
(in millions)						As Reported						Net of Reinsurance									As Reported						Net of Reinsurance
Liability for unpaid losses and loss adjustment expenses			$			(70,666)			$			(41,665)						$			(69,168)			$			(40,032)
Future policy benefits						(1,385)						(556)									(1,317)						(591)
Reserve for unearned premiums						(17,991)						(12,919)									(17,232)						(12,928)
Other policyholder funds						(352)						(352)									(418)						(418)
Reinsurance assets*						34,902															34,166

*Reinsurance assets excludes (i) allowance for credit losses and disputes of $248 million and $220 million (of which $130 million and $110 million pertains to CECL reserve for Liability for unpaid losses and loss adjustment expenses) for the years ended December 31, 2025 and 2024, respectively, (ii) paid loss recoveries of $3,342 million and $4,068 million for the years ended December 31, 2025 and 2024, respectively, and (iii) policy and contract claims recoverable of $0 million and $31 million for the years ended December 31, 2025 and 2024, respectively.

SHORT-DURATION REINSURANCE

Short-duration reinsurance is effected under reinsurance treaties and by negotiation on individual risks. Certain of these reinsurance arrangements consist of excess of loss contracts that protect us against losses above stipulated amounts. Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection received. Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of Reinsurance assets. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsurers. Any subsequent differences arising on such estimates are recorded in the periods in which they are determined. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premiums. Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsureds. Any subsequent differences arising on such estimates are recorded in the periods in which they are determined. For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit.

The following table presents short-duration insurance premiums written and earned:

			Years Ended December 31,
(in millions)						2025						2024						2023
Premiums written:
Direct			$			31,808			$			31,743			$			31,445
Assumed						3,796						3,950						7,951
Ceded						(11,931)						(11,791)						(12,190)
Net			$			23,673			$			23,902			$			27,206
Premiums earned:
Direct			$			31,463			$			31,208			$			30,781
Assumed						3,747						3,947						7,050
Ceded						(11,459)						(11,618)						(12,267)
Net			$			23,751			$			23,537			$			25,564
Percent of amount assumed to net						15.8		%				16.8		%				27.6		%

AIG | 2025 Form 10-K			121

ITEM 8 | Notes to Consolidated Financial Statements | 8. Reinsurance

For the years ended December 31, 2025, 2024 and 2023, reinsurance recoveries, which reduced losses and loss adjustment expenses incurred, amounted to $7.3 billion, $5.2 billion and $8.1 billion, respectively.

Retroactive reinsurance agreements are reinsurance agreements under which our reinsurer agrees to reimburse us as a result of past insurable events. For these agreements, the excess of the amounts ultimately collectible under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves. The amount of the deferral is recalculated each period based on loss payments and updated estimates. If the consideration paid exceeds the ultimate losses collectible under the agreement, the net loss on the agreement is recognized in income immediately. Ceded loss reserves under retroactive agreements were $10.6 billion and $11.5 billion, and the deferred gain liability was $748 million and $725 million, as of December 31, 2025 and 2024, respectively. The effect on income from amortization of the deferred gain was an increase of $232 million, $406 million and $82 million for the years ended December 31, 2025, 2024 and 2023, respectively.

In the first quarter of 2017, we entered into an adverse development reinsurance agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc., 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 U.S. 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.

FORTITUDE RE

Fortitude Re is the reinsurer of the majority of AIG’s run-off operations. The reinsurance transactions are structured as modco and loss portfolio transfer arrangements with funds withheld (funds withheld). In modco and funds withheld arrangements, the investments supporting the reinsurance agreements, which reflect the majority of the consideration that would be paid to the reinsurer for entering into the transaction, are withheld by, and therefore continue to reside on the balance sheet of, the ceding company (i.e., AIG) thereby creating an obligation for the ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date. Additionally, as AIG maintains ownership of these investments, AIG will maintain its existing accounting for these assets (e.g., the changes in fair value of available for sale securities will be recognized within OCI). AIG has established a funds withheld payable to Fortitude Re while simultaneously establishing a reinsurance asset representing reserves for the insurance coverage that Fortitude Re has assumed. The funds withheld payable contains an embedded derivative and changes in fair value of the embedded derivative related to the funds withheld payable are recognized in earnings through Net realized gains (losses). This embedded derivative is considered a total return swap with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements.

As of 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.

There is a diverse pool of assets supporting the funds withheld arrangements with Fortitude Re. The following summarizes the composition of the pool of assets:

			December 31, 2025															December 31, 2024
(in millions)			Carrying Value									Fair Value						Carrying Value									Fair Value			Corresponding Accounting Policy
Fixed maturity securities - available for sale(a)			$			1,780			$			1,780						$			1,918			$			1,918			Fair value through other comprehensive income (loss)
Fixed maturity securities - fair value option						734						734									721						721			Fair value through net investment income
Commercial mortgage loans						359						344									450						437			Amortized cost
Short-term investments						43						43									15						15			Fair value through net investment income
Funds withheld investment assets						2,916						2,901									3,104						3,091
Derivative assets, net(b)						—						—									1						1			Fair value through net realized gains (losses)
Other(c)						137						137									115						115			Amortized cost
Total			$			3,053			$			3,038						$			3,220			$			3,207

(a)The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $85 million ($67 million after-tax) and $(35) million ($(28) million after-tax), respectively for the years ended December 31, 2025 and for the year ended December 31, 2024.

(b)The derivative assets and liabilities have been presented net of cash collateral. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $1 million and $31 million, respectively, as of December 31, 2025. The derivative assets and liabilities supporting the Fortitude Re funds withheld arrangements had a fair market value of $9 million and $2 million, respectively, as of December 31, 2024. These derivative assets and liabilities are fully collateralized either by cash or securities.

(c)Primarily comprised of Cash and Accrued investment income.

122			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 8. Reinsurance

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

Years Ended December 31,
(in millions)																					2025						2024						2023
Net investment income - Fortitude Re funds withheld assets																		$			149			$			144			$			180
Net realized losses on Fortitude Re funds withheld assets:
Net realized losses - Fortitude Re funds withheld assets																					(70)						(39)						(71)
Net realized losses - Fortitude Re funds withheld embedded derivative																					(166)						(75)						(273)
Net realized losses on Fortitude Re funds withheld assets																					(236)						(114)						(344)
Income (loss) from continuing operations before income tax expense (benefit)																					(87)						30						(164)
Income tax expense (benefit)(a)																					(18)						6						(34)
Net income (loss)																					(69)						24						(130)
Change in unrealized appreciation (depreciation) on available for sale securities(a)																					67						(28)						92
Comprehensive loss																		$			(2)			$			(4)			$			(38)

(a)The income tax expense (benefit) and the tax impact in Accumulated other comprehensive income (loss) (AOCI) were computed using AIG’s U.S. statutory tax rate of 21 percent.

Various assets supporting the Fortitude Re funds withheld arrangements are reported at amortized cost, and as such, changes in the fair value of these assets are not reflected in the financial statements. However, changes in the fair value of these assets are included in the embedded derivative in the Fortitude Re funds withheld arrangement and the appreciation (depreciation) of the asset is the primary driver of the comprehensive income (loss) reflected above.

Reinsurance Security

Our third-party reinsurance arrangements do not relieve us from our direct obligations to our beneficiaries. Thus, a credit exposure exists with respect to both short-duration and long-duration reinsurance ceded to the extent that any reinsurer fails to meet the obligations assumed under any reinsurance agreement. We hold substantial collateral as security under related reinsurance agreements in the form of funds, securities, and/or letters of credit. A provision has been recorded for estimated unrecoverable reinsurance. In light of collateral held, we believe that no exposure to a single reinsurer represents an inappropriate concentration of credit risk to AIG. Gross reinsurance assets due from reinsurers exceeding 5 percent of our total reinsurance assets were approximately $13.0 billion and $15.2 billion at December 31, 2025 and 2024, respectively, of which approximately $1.7 billion and $2.1 billion at December 31, 2025 and 2024, respectively, was not secured by collateral.

REINSURANCE – CREDIT LOSSES

We assess the collectability of reinsurance recoverable balances in each reporting period, through either historical trends of disputes and credit events or financial analysis of the credit quality of the reinsurer. We record adjustments to reflect the results of these assessments through an allowance for credit losses and disputes on uncollectible reinsurance that reduces the carrying amount of reinsurance and deposit accounting assets on the consolidated balance sheets (collectively, reinsurance recoverables). This estimate requires judgment for which key considerations include:

• paid and unpaid amounts recoverable;

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

• the relative financial health of the reinsurer as classified by the Obligor Risk Ratings (ORRs) we assign to each reinsurer based upon our financial reviews; reinsurers that are financially troubled (i.e., in run-off, have voluntarily or involuntarily been placed in receivership, are insolvent, are in the process of liquidation or otherwise subject to formal or informal regulatory restriction) are assigned ORRs that will generate a significant allowance; and

• whether collateral and collateral arrangements exist.

An estimate of the reinsurance recoverable's lifetime expected credit losses is established utilizing a probability of default and loss given default method, which reflects the reinsurer’s ORR. The allowance for credit losses excludes disputed amounts. An allowance for disputes is established for a reinsurance recoverable using the losses incurred model for contingencies.

The total reinsurance recoverables as of December 31, 2025 were $40.7 billion. As of that date, utilizing AIG’s ORRs, (i) approximately 80 percent of the reinsurance recoverables were investment grade; (ii) approximately 17 percent of the reinsurance recoverables were non-investment grade and (iii) approximately 3 percent of the reinsurance recoverables related to entities that were not rated by AIG.

The total reinsurance recoverables as of December 31, 2024 were $40.5 billion. As of that date, utilizing AIG’s ORRs, (i) approximately 83 percent of the reinsurance recoverables were investment grade; (ii) approximately 15 percent of the reinsurance recoverables were non-investment grade; (iii) approximately 2 percent of the reinsurance recoverables related to entities that were not rated by AIG.

AIG | 2025 Form 10-K			123

ITEM 8 | Notes to Consolidated Financial Statements | 8. Reinsurance

As of December 31, 2025 and December 31, 2024, approximately 87 percent and 81 percent, respectively, of our non-investment grade reinsurance exposure related to captive insurers. These arrangements are typically collateralized by letters of credit, funds withheld or trust agreements.

Reinsurance Recoverable Allowance

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

Years Ended December 31,
(in millions)																								2025									2024									2023
Balance, beginning of year																					$			269						$			255						$			260
Addition to (release of) allowance for expected credit losses and disputes, net																								28									11									(5)
Write-offs charged against the allowance for credit losses and disputes																								(4)									(1)									—
Other changes																								4									4									—
Balance, end of year																					$			297						$			269						$			255

Past-Due Status

We consider a reinsurance asset to be past due when it is 90 days past due. The allowance for credit losses is estimated excluding disputed amounts. An allowance for disputes is established using the losses incurred method for contingencies. Past due balances on claims that are not in dispute were not material for any of the periods presented.

9. Deferred Policy Acquisition Costs

DAC represent costs that are directly related to the successful acquisition of new or renewal of existing insurance contracts. Such DAC generally include commissions, premium taxes and certain other underwriting costs. We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling.

DAC is amortized over the period in which the related premiums written are earned. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and reviewed for recoverability based on the profitability of the underlying insurance contracts.

The following table presents a rollforward of DAC:

Years Ended December 31,
(in millions)			2025						2024						2023
Balance, beginning of year			$	2,065					$	2,117					$	2,343
Capitalization			3,381						3,519						4,157
Amortization expense			(3,371)						(3,425)						(3,771)
Other, including foreign exchange			31						(146)						(34)
Dispositions*			—						—						(578)
Balance, end of year			$	2,106					$	2,065					$	2,117

*Includes amounts related to the sale of Validus Re through the date of disposition.

10. Variable Interest Entities

A variable interest entity (VIE) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on other criteria discussed below.

We enter into various arrangements with VIEs in the normal course of business and consolidate the VIEs when we determine we are the primary beneficiary. This analysis includes a review of the VIE’s capital structure, related contractual relationships and terms, nature of the VIE’s operations and purpose, nature of the VIE’s interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks to which the entity was designed to expose the variable interest holders.

124			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 10. Variable Interest Entities

The primary beneficiary is the entity that has both (i) the power to direct the activities of the VIE that most significantly affect the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE.

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

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

												Maximum Exposure to Loss
(in millions)						Total VIE Assets									On-Balance Sheet(c)									Off-Balance Sheet									Total
December 31, 2025
Real estate and investment entities(a)			$			403,956						$			3,078						$			1,219			(d)			$			4,297
Other(b)						4,776									188									302			(e)						490
Total			$			408,732						$			3,266						$			1,521						$			4,787
December 31, 2024
Real estate and investment entities(a)			$			367,661						$			2,723						$			839			(d)			$			3,562
Other(b)						4,639									255									754			(e)						1,009
Total			$			372,300						$			2,978						$			1,593						$			4,571

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

(b)At December 31, 2025 and 2024, excludes approximately $1,141 million and $1,925 million, respectively, of VIE assets related to AIGFP and its consolidated subsidiaries, with maximum off-balance sheet exposure to loss of $1,109 million and $1,894 million, respectively. For additional information, see Note 7.

(c)At December 31, 2025 and 2024, $3.3 billion and $2.9 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.

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

(e)These amounts represent our estimate of the maximum exposure to loss under certain insurance policies issued to VIEs if a hypothetical loss occurred to the extent of the full amount of the insured value. Our insurance policies cover defined risks and our estimate of liability is included in our insurance reserves on the balance sheet.

REAL ESTATE AND INVESTMENT ENTITIES

Through our insurance operations and AIG Global Real Estate Investment Corp., we are an investor in various real estate investment entities, some of which are VIEs. These investments are typically with unaffiliated third-party developers via a partnership or limited liability company structure. The VIEs’ activities consist of the development or redevelopment of commercial, industrial and residential real estate. Our involvement varies from being a passive equity investor or finance provider to actively managing the activities of the VIEs.

Our insurance operations participate as passive investors in the equity issued by certain third-party-managed hedge and private equity funds that are VIEs. Our insurance operations typically are not involved in the design or establishment of these VIEs, nor do they actively participate in the management of the VIEs.

RMBS, CMBS, OTHER ABS AND CLOS

Primarily through our insurance operations, we are a passive investor in RMBS, CMBS, other ABS and CLOs, the majority of which are issued by domestic special purpose entities. We generally do not sponsor or transfer assets to, or act as the servicer to these asset-backed structures, and were not involved in the design of these entities. Our maximum exposure in these types of structures is limited to our investment in securities issued by these entities and, where applicable, any unfunded commitments to these entities.

AIG | 2025 Form 10-K			125

ITEM 8 | Notes to Consolidated Financial Statements | 11. Derivatives and Hedge Accounting

11. Derivatives and Hedge Accounting

We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with embedded derivatives contained in insurance contract liabilities, fixed maturity securities, outstanding medium- and long-term notes as well as other interest rate-sensitive assets and liabilities. Foreign exchange derivatives (principally foreign exchange forwards and swaps) are used to economically mitigate risk associated with non-U.S. dollar denominated debt, net capital exposures, foreign currency transactions, and foreign denominated investments. Equity derivatives are used to economically mitigate financial risk associated with embedded derivatives. We use credit derivatives to manage our credit exposures. The derivatives are effective economic hedges of the exposures that they are meant to offset. In addition to hedging activities, we also enter into derivative contracts with respect to investment operations, which may include, among other things, CDSs, total return swaps and purchases of investments with embedded derivatives, such as equity-linked notes and convertible bonds.

Interest rate, currency, equity swaps, credit contracts, swaptions, options and forward transactions are accounted for as derivatives, recorded on a trade-date basis and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. Aggregate asset or liability positions are netted on the Consolidated Balance Sheets only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty. Cash collateral posted with counterparties in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset.

Derivatives, with the exception of embedded derivatives, are reported at fair value in the Consolidated Balance Sheets in Other assets and Other liabilities. Embedded derivatives are generally presented with the host contract in the Consolidated Balance Sheets. A bifurcated embedded derivative is measured at fair value and accounted for in the same manner as a free standing derivative contract. The corresponding host contract is accounted for according to the accounting guidance applicable for that instrument.

For additional information on embedded derivatives, see Note 5.

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

			December 31, 2025																														December 31, 2024
			Gross Derivative Assets															Gross Derivative Liabilities															Gross Derivative Assets															Gross Derivative Liabilities
(in millions)						Notional Amount						Fair Value									Notional Amount						Fair Value									Notional Amount						Fair Value									Notional Amount						Fair Value
Derivatives designated as hedging instruments:****(a)
Foreign exchange contracts			$			206			$			21						$			1,438			$			88						$			879			$			66						$			906			$			109
Derivatives not designated as hedging instruments:****(a)
Interest rate contracts						935						227									1,012						258									841						277									913						304
Foreign exchange contracts						1,154						64									2,576						93									3,095						230									1,707						158
Equity contracts						—						—									—						—									29						20									29						20
Credit contracts(b)						42						26									47						26									52						31									147						31
Total derivatives, gross			$			2,337			$			338						$			5,073			$			465						$			4,896			$			624						$			3,702			$			622
Counterparty netting**(c)**												(164)															(164)															(270)															(270)
Cash collateral**(d)**												(169)															(212)															(304)															(201)
Total derivatives on Consolidated Balance Sheets**(e)**									$			5												$			89												$			50												$			151

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

(b)As of December 31, 2025 and 2024, included CDSs on super senior multi-sector CLO with a net notional amount of $38 million and $48 million (fair value liability of $25 million and $30 million, respectively). The net notional amount represents the maximum exposure to loss on the portfolio.

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

(d)Represents cash collateral posted and received that is eligible for netting.

(e)Freestanding derivatives only, excludes embedded derivatives. Derivative instrument assets and liabilities are recorded in Other assets and Other liabilities, respectively. Fair value of assets related to bifurcated embedded derivatives was $3.0 billion at December 31, 2025 and $3.2 billion at December 31, 2024. Fair value of liabilities related to bifurcated embedded derivatives was zero at both December 31, 2025 and 2024. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheets. Embedded derivatives are primarily related to the funds withheld arrangement with Fortitude Re. For additional information, see Note 8.

126			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 11. Derivatives and Hedge Accounting

COLLATERAL

We engage in derivative transactions that are not subject to a clearing requirement directly with unaffiliated third parties, in most cases, under International Swaps and Derivatives Association, Inc. (ISDA) Master Agreements. An ISDA Master Agreement is an agreement governing multiple derivative transactions between two counterparties. Many of the ISDA Master Agreements also include Credit Support Annex provisions, which provide for collateral postings that may vary at various ratings and threshold levels. We attempt to reduce our risk with certain counterparties by entering into agreements that enable collateral to be obtained from a counterparty on an upfront or contingent basis. We minimize the risk that counterparties might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and generally requiring additional collateral to be posted upon the occurrence of certain events or circumstances. In addition, certain derivative transactions have provisions that require collateral to be posted by us upon a downgrade of our long-term debt ratings or give the counterparty the right to terminate the transaction. In the case of some of the derivative transactions, upon a downgrade of our long-term debt ratings, as an alternative to posting collateral and subject to certain conditions, we may assign the transaction to an obligor with higher debt ratings or arrange for a substitute guarantee of our obligations by an obligor with higher debt ratings or take other similar action. The actual amount of collateral required to be posted to counterparties in the event of such downgrades, or the aggregate amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade.

Collateral posted by us to third parties for derivative transactions was $362 million and $601 million at December 31, 2025 and 2024, respectively. In the case of collateral posted under derivative transactions that are not subject to clearing, this collateral can generally be repledged or resold by the counterparties. Collateral provided to us from third parties for derivative transactions was $222 million and $595 million at December 31, 2025 and 2024, respectively. In the case of collateral provided to us under derivative transactions that are not subject to clearing, we generally can repledge or resell collateral.

OFFSETTING

We have elected to present all derivative receivables and derivative payables, and the related cash collateral received and paid, on a net basis on our Consolidated Balance Sheets when a legally enforceable ISDA Master Agreement exists between us and our derivative counterparty. The ISDA Master Agreement generally provides for the net settlement of all, or a specified group, of these derivative transactions, as well as transferred collateral, through a single payment, and in a single currency, as applicable. The net settlement provisions apply 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 governed by the ISDA Master Agreement.

HEDGE ACCOUNTING

We designate certain derivatives entered into with third parties as fair value hedges of available for sale investment securities held by our insurance subsidiaries. The fair value hedges include foreign currency forwards and cross currency swaps designated as hedges of the change in fair value of foreign currency denominated available for sale securities attributable to changes in foreign exchange rates.

We use foreign currency denominated debt and cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non-U.S. dollar functional currency foreign subsidiaries. For net investment hedge relationships where issued debt is used as a hedging instrument, we assess the hedge effectiveness and measure the amount of ineffectiveness based on changes in spot rates. For net investment hedge relationships that use derivatives as hedging instruments, we assess hedge effectiveness and measure hedge ineffectiveness using changes in forward rates. For the years ended December 31, 2025, 2024 and 2023, we recognized gains (losses) of $(116) million, $86 million and $(42) million, respectively, included in Change in foreign currency translation adjustments in OCI related to the net investment hedge relationships.

A qualitative methodology is utilized to assess hedge effectiveness.

AIG | 2025 Form 10-K			127

ITEM 8 | Notes to Consolidated Financial Statements | 11. Derivatives and Hedge Accounting

The following table presents the gain (loss) recognized in income on our derivative instruments in fair value hedging relationships in the Consolidated Statements of Income (Loss):

						Gains/(Losses) Recognized in Income for:
(in millions)						Hedging Derivatives(a)						Excluded Components(b)						Hedged Items						Net Impact
Year Ended December 31, 2025
Foreign exchange contracts:
Net realized gains/(losses)						$	(103)					$	(38)					$	103					$	(38)
Year Ended December 31, 2024
Foreign exchange contracts:
Net realized gains/(losses)						$	(85)					$	(19)					$	85					$	(19)
Year Ended December 31, 2023
Foreign exchange contracts:
Net realized gains/(losses)						$	(177)					$	(25)					$	177					$	(25)

(a)Gains and losses on derivative instruments designated and qualifying in fair value hedges that are included in the assessment of hedge effectiveness.

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

DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

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

Years Ended December 31,																					Gains (Losses) Recognized in Income
(in millions)																					2025						2024						2023
By Derivative Type:
Interest rate contracts																					$	(6)					$	(6)					$	(12)
Foreign exchange contracts																					(195)						(52)						(175)
Equity contracts																					—						—						1
Commodity contracts																					—						—						8
Credit contracts																					—						3						(2)
Embedded derivatives																					(166)						(75)						(273)
Total																					$	(367)					$	(130)					$	(453)
By Classification:
Net investment income - Fortitude Re funds withheld assets																					$	(1)					$	1					$	—
Net realized losses - excluding Fortitude Re funds withheld assets																					(180)						(63)						(172)
Net realized losses on Fortitude Re funds withheld assets*																					(186)						(68)						(281)
Total																					$	(367)					$	(130)					$	(453)

*Includes over-the-counter derivatives supporting the funds withheld arrangements with Fortitude Re and the embedded derivative contained within the funds withheld payable with Fortitude Re.

CREDIT RISK-RELATED CONTINGENT FEATURES

We estimate that at December 31, 2025, based on our outstanding financial derivative transactions, a downgrade of our long-term senior debt ratings to BBB or BBB– by Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc., and/or a downgrade to Baa2 or Baa3 by Moody’s Investors Service, Inc. would permit counterparties to make additional collateral calls and permit certain counterparties to elect early termination of contracts, resulting in corresponding collateral postings and termination payments in the total amount of up to approximately $4 million. The aggregate fair value of our derivatives that were in a net liability position and that contain such credit risk-related contingencies which can be triggered below our long-term senior debt ratings of BBB+ or Baa1 was approximately $25 million and $30 million at December 31, 2025 and 2024, respectively. The aggregate fair value of assets posted as collateral under these contracts at December 31, 2025 and 2024, was approximately $25 million and $30 million, respectively.

128			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 12. Goodwill and Other Intangible Assets

12. Goodwill and Other Intangible Assets

Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is tested for impairment at the reporting unit level, which is defined as a segment or one level below, and the test is performed annually, or more frequently if circumstances indicate an impairment may have occurred. When a business is transferred from one reporting unit to another, goodwill from the original reporting unit is allocated among reporting units based on the fair value of business transferred, relative to business retained by a reporting unit.

Goodwill impairment is first assessed using qualitative factors to determine if it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not performed, or the assessment is performed and the results indicate a potential impairment, a quantitative assessment is completed. We estimate the fair value of each reporting unit which involves management judgment and maybe based on one or a combination of approaches including discounted expected future cash flows, market-based earnings multiples of the unit’s peer companies, external appraisals or, in the case of reporting units being considered for sale, third-party indications of fair value, if available.

If the carrying value of a reporting unit exceeds its estimated fair value, goodwill associated with that reporting unit potentially is impaired and the amount of the impairment is recognized in income.

The following table presents the changes in goodwill:

						General Insurance
(in millions)						North America Commercial						International Commercial						Global Personal						Other Operations						Total
Balance at January 1, 2024:
Goodwill - gross						$	4,285					$	2,028					$	502					$	17					$	6,832
Accumulated impairments						(2,216)						(947)						(237)						(10)						(3,410)
Net goodwill						2,069						1,081						265						7						3,422
Increase (decrease) due to:
Dispositions						—						—						(22)						—						(22)
Foreign exchange and other						—						(25)						(2)						—						(27)
Balance at December 31, 2024:
Goodwill - gross						4,285						2,003						478						17						6,783
Accumulated impairments						(2,216)						(947)						(237)						(10)						(3,410)
Net goodwill						2,069						1,056						241						7						3,373
Increase (decrease) due to:
Foreign exchange and other						—						58						4						—						62
Balance at December 31, 2025:
Goodwill - gross						4,285						2,061						482						17						6,845
Accumulated impairments						(2,216)						(947)						(237)						(10)						(3,410)
Net goodwill						$	2,069					$	1,114					$	245					$	7					$	3,435

Other intangible assets consist of both indefinite lived and finite lived intangible assets. Indefinite lived intangible assets are not subject to amortization and primarily include Lloyd’s syndicate capacity and brand names. Finite lived intangible assets are amortized over their estimated useful lives and are presented net of accumulated amortization; these assets primarily include distribution networks and Everest renewal rights. For details on the Everest transaction, see Note 1. The Company tests indefinite lived intangible assets for impairment on an annual basis or whenever events or circumstances suggest that the carrying value of an intangible asset may exceed the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If this condition exists and the carrying value of an intangible asset exceeds its fair value, the excess is recognized as an impairment and is recorded as a charge against net income (loss).

The Other intangible assets and Value of distribution network acquired were $684 million and $370 million at December 31, 2025 and 2024, respectively.

AIG | 2025 Form 10-K			129

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

13. Insurance Liabilities

LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES (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. Any adjustments resulting from this review are reflected currently in pre-tax income, except to the extent such adjustment impacts a deferred gain under a retroactive reinsurance agreement, in which case the ceded portion would be amortized into pre-tax income in subsequent periods. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be recognized and confirmed. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as favorable development or reserve releases.

Our gross loss reserves before reinsurance and discount are net of contractual deductible recoverable amounts due from policyholders of approximately $13.8 billion and $12.1 billion at December 31, 2025 and 2024, respectively. These recoverable amounts are related to certain policies with high deductibles (in excess of high dollar amounts retained by the insured through self-insured retentions, deductibles, retrospective programs, or captive arrangements, each referred to generically as “deductibles”), primarily for U.S. Commercial casualty business. With respect to the deductible portion of the claim, we manage and pay the entire claim on behalf of the insured and are reimbursed by the insured for the deductible portion of the claim. Thus, these recoverable amounts represent a credit exposure to us. At December 31, 2025 and 2024 we held collateral of approximately $9.6 billion and $8.6 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements. Allowance for credit losses for the unsecured portion of these recoverable amounts was $14 million at both December 31, 2025 and 2024.

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

Years Ended December 31,
(in millions)																					2025						2024						2023
Liability for unpaid loss and loss adjustment expenses, beginning of year																					$	69,168					$	70,393					$	75,167
Reinsurance recoverable																					(29,026)						(30,289)						(32,102)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year																					40,142						40,104						43,065
Losses and loss adjustment expenses incurred:
Current year																					14,440						14,363						15,100
Prior years, excluding discount and amortization of deferred gain																					(216)						254						(392)
Prior years, discount charge (benefit)																					168						354						307
Prior years, amortization of deferred gain on retroactive reinsurance(a)																					(230)						(404)						(81)
Total losses and loss adjustment expenses incurred																					14,162						14,567						14,934
Losses and loss adjustment expenses paid:
Current year																					(3,901)						(3,694)						(3,836)
Prior years																					(9,975)						(9,849)						(11,868)
Total losses and loss adjustment expenses paid																					(13,876)						(13,543)						(15,704)
Other changes:
Foreign exchange effect																					1,233						(996)						606
Losses and loss adjustment expenses recognized within gain on divestitures																					58						—						569
Retroactive reinsurance adjustment (net of discount)(b)																					76						15						158
Dispositions(c)																					—						(5)						(3,505)
Reclassified to held for sale, net of reinsurance recoverables																					—						—						(19)
Total other changes																					1,367						(986)						(2,191)
Liability for unpaid loss and loss adjustment expenses, end of year:
Net liability for unpaid losses and loss adjustment expenses																					41,795						40,142						40,104
Reinsurance recoverable																					28,871						29,026						30,289
Total																					$	70,666					$	69,168					$	70,393

(a)Includes $72 million, $82 million and $33 million for the retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the years ended December 31, 2025, 2024 and 2023, respectively.

(b)Includes benefit (charge) from change in discount on retroactive reinsurance of $45 million, $168 million and $150 million for the years ended December 31, 2025, 2024 and 2023, respectively.

(c)Includes amounts related to the sale of Validus Re through the date of disposition.

130			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

The following table presents the reconciliation of the net liability for unpaid losses and loss adjustment expenses in the following tables to Loss Reserves in the Consolidated Balance Sheets for the year ended December 31, 2025:

(in millions)			Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below						Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below						Gross liability for unpaid losses and loss adjustment expenses
U.S. Workers' Compensation (before discount)			$			3,445			$			4,633			$			8,078
U.S. Excess Casualty						3,153						2,961						6,114
U.S. Other Casualty						4,651						3,170						7,821
U.S. Financial Lines						5,270						1,516						6,786
U.S. Property and Special Risks						4,142						990						5,132
U.S. Personal Insurance						705						1,986						2,691
UK/Europe Casualty and Financial lines						8,288						2,376						10,664
UK/Europe Property and Special Risks						2,176						2,214						4,390
UK/Europe and Japan Personal Insurance						1,240						733						1,973
Total			$			33,070			$			20,579			$			53,649
Reconciling Items
Discount on workers' compensation lines																		(2,063)
Other product lines*																		16,351
Unallocated loss adjustment expenses																		2,729
Total Loss Reserves															$			70,666

*Reinsurance recoverable for other product lines of $8.4 billion resulted in a net liability for unpaid losses and loss adjustment expenses of $7.9 billion for the year ended December 31, 2025.

Prior Year Development

In the sections below, we provide details by coverage group regarding incurred losses, reserve balances and prior year development. The first table below shows prior year development by coverage group, the first two columns of which will again be presented in the coverage group sections that follow. After this table we describe historical drivers of prior year development as well as actuarial methods and relevant terminology. The following coverage group sections present the undiscounted incurred losses and allocated loss adjustment expenses by accident year on a net basis after reinsurance, with separate presentation of the adverse development cover where applicable, excluding related amortization of the deferred gain. Each section also contains a description of the business included in that section. Finally, we show a table of claims payout patterns by coverage.

In 2017, we entered into adverse development reinsurance agreement (ADC) cessions 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.

The following table presents the reconciliation of net prior year development before the ADC cessions from the tables below to the net prior year development after ADC cessions and amortization of deferred gain for the year ended December 31, 2025:

(in millions)						Prior Year Development Net of External Reinsurance Before ADC Cessions						Prior Year Development Net of External Reinsurance After ADC Cessions(a)						Reattribution of ADC Recovery and Other(b)						Amortization of Deferred Gain at Inception						Prior Year Development After Amortization and Reattribution
U.S. Workers' Compensation			$			(133)			$			(113)			$			(21)			$			(38)			$			(172)
U.S. Excess Casualty						303						82						33						(30)						85
U.S. Other Casualty						(92)						22						(2)						(28)						(8)
U.S. Financial Lines						(38)						(45)						—						(20)						(65)
U.S. Property and Special Risks						(118)						(150)						26						—						(124)
U.S. Personal Insurance						(11)						(11)						2						(1)						(10)
UK/Europe Casualty and Financial lines						216						216						—						—						216
UK/Europe Property and Special Risks						(18)						(14)						(5)						—						(19)
UK/Europe and Japan Personal Insurance						38						37						—						—						37
Other product lines						(469)						(448)						(33)						(7)						(488)
Subtotal, adjusted pre-tax basis			$			(322)			$			(424)			$			—			$			(124)			$			(548)
Businesses in run-off						106						(3)						—						—						(3)
Subtotal			$			(216)			$			(427)			$			—			$			(124)			$			(551)
Remove impact of Retroactive Reinsurance
Amortization of deferred gain at inception																														124
Prior year development ceded under the Asbestos LPT																														109
Prior year development ceded under the ADC																														102
Total, prior years, excluding discount and amortization of deferred gain																											$			(216)

AIG | 2025 Form 10-K			131

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

(a)Change in net ultimate loss and loss adjustment expenses excludes the portion of prior year development we have ceded under the Asbestos Loss Portfolio Transfer (LPT) and the ADC, both of which are provided by NICO and are considered retroactive reinsurance under U.S. GAAP.

(b)Reattribution of the ADC recovery takes place annually as we model the future payments on the subject reserves. ADC recoverables are then reallocated by line based on payments expected to be made. Other includes an alignment of global specialty products as reported in International Commercial.

During 2025, we recognized favorable prior year loss reserve development of $216 million, net of external reinsurance but before ADC cessions, primarily driven by:

• Favorable development on U.S. Workers’ Compensation of $133 million reflecting favorable experience within Excess of Loss Sensitive offset by adverse development within Primary Guaranteed Cost and Defense Base Act business;

• Unfavorable development on U.S. Excess Casualty of $303 million driven by unfavorable development in Mass Tort, a large proportion of which was covered by the ADC;

• Favorable development on U.S Property and Special Risks of $118 million primarily driven by development in U.S. Property and Programs;

• Unfavorable development in UK/Europe Casualty and Financial Lines of $216 million driven by UK Financial Lines and EMEA Casualty, particularly within Auto and General Liability lines, partially offset by favorable development in EMEA Financial Lines;

• Favorable development of $469 million in total on other product lines primarily driven by Global Specialty, notably within Energy and Trade Credit, as well as development in short-tail Property; and

• Unfavorable development on Businesses in run-off of $106 million is primarily attributed to Asbestos development, which is entirely ceded under the LPT.

During 2024, we recognized unfavorable prior year loss reserve development of $254 million, net of external reinsurance but before ADC cessions, primarily driven by:

• Favorable development on U.S. Workers’ Compensation of $273 million reflecting continued favorable loss experience;

• Unfavorable development on U.S. Excess Casualty of $545 million driven by a large settlement of a legacy mass tort claim with the gross loss in accident years covered under the ADC and increased reserves related to claims emergence;

• Unfavorable development on U.S. Other Casualty of $12 million reflecting unfavorable development on Commercial Auto and Wholesale Primary General Liability, partially offset by favorability across numerous Casualty reserving classes;

• Unfavorable development in U.S. Financial Lines of $51 million due to unfavorable development in M&A and High Excess classes, offset by favorable experience across most reserving classes;

• Favorable development on U.S. Property and Special Risks of $44 million reflecting favorable loss experience in Retail and Wholesale Property, offset by development on prior year catastrophes;

• Favorable development in U.S. Personal Insurance of $23 million driven by favorable development on prior year catastrophes across several events primarily in the 2019-2023 accident years;

• Unfavorable development in UK/Europe Casualty and Financial Lines of $170 million 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 of $35 million reflecting favorable development across most segments and geographies;

• Favorable development on UK/Europe and Japan Personal Insurance of $47 million primarily driven by Japan A&H and Auto, partially offset by unfavorable Personal Auto in EMEA;

• Favorable development of $299 million in total on other product lines primarily driven by Global Specialty which saw favorable development across multiple lines; and

• Unfavorable development on Businesses in run-off of $196 million is primarily attributed to Asbestos development of $85 million, which is entirely ceded under the LPT, and development on the Blackboard insurance portfolio of $112 million due to increased reported loss activity in general liability.

During 2023, we recognized favorable prior year loss reserve development of $392 million, net of external reinsurance but before ADC cessions, primarily driven by:

• Favorable development on U.S. Workers’ Compensation of $267 million due to a continuation of favorable loss cost trends in guaranteed cost and excess segments across most accident years;

• Favorable development on U.S. Excess Casualty of $32 million driven by favorable development on the Excess Construction Runoff Portfolio;

• Favorable development on U.S Other Casualty of $133 million largely driven by favorable experience in construction defect and construction wraps as well as guaranteed cost auto and general liability;

132			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

• Unfavorable development in U.S. Financial Lines of $94 million due to unfavorable development on High Attaching Excess Directors and Officers (D&O), M&A, Primary National D&O, Cyber data privacy claims, and Architects & Engineers, partially offset by favorable development on Primary Private Not for Profit D&O and Financial Institutions D&O;

• Favorable development on U.S. Property and Special Risks of $10 million reflecting favorable development on prior year catastrophes in the 2017-2021 accident years, offset by adverse development on prior year catastrophes in the 2022 accident year;

• Favorable development in U.S. Personal Insurance of $64 million driven by favorable development on prior year catastrophes across several events primarily in the 2017-2020 accident years;

• Unfavorable development in UK/Europe Casualty and Financial Lines of $165 million due to unfavorable development in auto liability in Europe and UK and in UK D&O and Commercial Professional Indemnity business, partially offset by favorable development in Financial Institutions Professional Indemnity and D&O in Europe and UK and Cyber and Commercial Professional Indemnity in Europe;

• Unfavorable development on UK/Europe Property and Special Risks of $81 million driven by unfavorable development on prior year catastrophes;

• Favorable development on UK/Europe and Japan Personal Insurance of $57 million driven by favorable development in Japan personal auto and A&H business; and

• Favorable development of $162 million in total on other product lines driven by favorable development in global specialty and financial lines in Canada and other International regions.

Our analyses and conclusions about prior year reserves also help inform our judgments about the current accident year loss and loss adjustment expense ratios we selected.

Loss Development Information

The following is information about incurred and paid loss developments as of December 31, 2025, net of reinsurance. The cumulative number of reported claims, the total of IBNR liabilities and expected development on reported loss included within the net incurred loss amounts are presented in the following section.

Reserving Methodology

We use a combination of methods to project ultimate losses for both long-tail and short-tail exposures, which include:

• Paid Development method:** The Paid Development method estimates ultimate losses by reviewing paid loss patterns and selecting paid ultimate loss development factors. These factors are then applied to paid losses by applying them to accident years, with further expected changes in paid loss. Since the method does not rely on case reserves, it is not directly influenced by changes in the adequacy of case reserves.

• Incurred Development method:** The Incurred Development method is similar to the Paid Development method, but it uses case incurred losses instead of paid losses. Since this method uses more data (case reserves in addition to paid losses) than the Paid Development method, the incurred development patterns may be less variable than paid development patterns.

• Expected Loss Ratio method:** The Expected Loss Ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year. This method may be useful if loss development patterns are inconsistent, losses emerge very slowly, or there is relatively little loss history from which to estimate future losses. Expected loss ratio methods for business written in excess of a deductible may be given significant weight in the most recent five accident years. The expected loss ratios used for recent accident years are based on the projected ultimate loss ratios for older years adjusted for rate changes, loss trend including inflation, and where appropriate, changing market conditions.

• Bornhuetter-Ferguson method:** The Bornhuetter-Ferguson method using premiums and paid losses is a combination of the Paid Development method and the Expected Loss Ratio method where the weight given to each method is the reciprocal of the loss development factor. This method normally determines expected loss ratios similar to the method used for the Expected Loss Ratio method. The Bornhuetter-Ferguson method using premiums and incurred losses is similar to the Bornhuetter-Ferguson method using premiums and paid losses except that it uses case-incurred losses.

• Cape Cod method:** The Cape Cod method is mechanically similar to the Bornhuetter-Ferguson method with the difference being that the Expected Loss Ratio estimates are determined based on a weighting of the loss estimates that come from the Paid/Incurred Development Methods. This method may be more responsive to recent loss trends than the Bornhuetter-Ferguson method.

• Average Loss method:** The Average Loss method multiplies a projected number of ultimate claims by an estimated ultimate severity average loss for each accident year to produce ultimate loss estimates. Since projections of the ultimate number of claims are often less variable than projections of ultimate loss, this method can provide more reliable results for reserve categories where loss development patterns are inconsistent or too variable to be relied on exclusively.

AIG | 2025 Form 10-K			133

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

In updating our loss reserve estimates, we consider and evaluate inputs from many sources, including actual claims data, the performance of prior reserve estimates, observed industry trends, our internal peer review processes, including challenges and recommendations from our Enterprise Risk Management group, as well as the views of third-party actuarial firms. We use these inputs to improve our evaluation techniques, and to analyze and assess the change in estimated ultimate loss for each accident year by product line. Our analyses produce a range of indications from various methods, from which we select our best estimate.

In determining the actual carried loss reserves, we consider both the internal actuarial best estimate and numerous other internal and external factors, including:

• an assessment of economic conditions, including real GDP growth, inflation, employment rates or unemployment duration, stock market volatility and changes in corporate bond spreads;

• changes in the legal, regulatory, judicial and social environment, including changes in road safety, public health and cleanup standards;

• changes in medical cost trends (inflation, intensity and utilization of medical services) and wage inflation trends;

• underlying policy pricing, terms and conditions including attachment points and policy limits;

• change in claims handling philosophy, operating model, processes, and related ongoing enhancements;

• third-party claims reviews that are periodically performed for key classes of claims such as toxic tort, environmental and other complex casualty claims;

• third-party actuarial reviews that are periodically performed for key classes of business;

• input from underwriters on pricing, terms, and conditions and market trends; and

• changes in our reinsurance program, pricing and commutations.

Where appropriate and identifiable, adjustments have been made to standard projection techniques. Changes in claims handling practices, such as differing referral and review criteria and other factors may also be expected to alter loss emergence.

The following factors are relevant to the loss development information included in the tables below:

• Table organization:** The tables are organized by accident year and include policies written on an occurrence and claims- made basis. We note that for certain categories of claims (e.g., construction defect claims and environmental claims) and for reinsurance recoverable, losses may sometimes be reclassified to an earlier or later accident year as more information about the date of occurrence becomes available to us. These reclassifications are shown as development in the respective years in the tables below. Financial Lines business is primarily written on a claims-made basis, while the majority of the workers’ compensation, excess casualty, other casualty, and run-off property and casualty lines of business are written on an occurrence basis. Primarily, all short-tail lines in Property and Special Risks and Personal Insurance are written on an occurrence basis.

• Groupings:** We believe our groupings have homogenous risk characteristics with similar development patterns and would generally be subject to similar trends and reflect our reportable segments. The incurred losses and loss adjustment expenses and paid losses in the following tables for the current reporting year are allocated to the line of business and accident years based on how the business is coded by profit center and line of business.

• Reinsurance:** Our reinsurance program varies by exposure type. Historically we have leveraged facultative and treaty reinsurance, both on a pro-rata and excess of loss basis. Our reinsurance program may change from year to year, which may affect the comparability of the data presented in our tables.

• Adverse development reinsurance agreement:** For the lines of business covered by the agreement (U.S. Workers' Compensation, U.S. Excess Casualty, U.S. Other Casualty, U.S. Financial Lines, U.S. Property and Special Risks and U.S. Personal Insurance or collectively, the Covered Lines), an attribution of the loss recoveries to the line of business by calendar year and accident year is performed based on the underlying distribution of the losses subject to the agreement. Specifically, the future claim payments for all subject incurred losses were projected into future years based on the same actuarial assumptions underlying the related reserves. The additional table presented after discussion of prior year development by line of business reconciles the changes in net ultimates to our overall prior year development and provides the reattribution of loss recoveries for the Covered Lines. The reinsurance terms of the ADC were then used to identify the future claims payments for which 80% will be reimbursed by NICO. At each reporting period, the attribution of the ADC recoveries is performed. The factors that could cause the attribution to lines of business and accident year to change include changes in underlying actuarial assumptions as to timing and amount of future claim payments.

• Incurred but not reported liabilities (IBNR):** We include development from past reported losses in IBNR.

• Data excluded from tables:** Information with respect to accident years older than ten years is excluded from the development tables. Unallocated loss adjustment expenses are also excluded.

• Foreign exchange:** The loss development for operations outside of the U.S. is presented for all accident years using the current exchange rate at December 31, 2025. Although this approach requires restating all prior accident year information, the changes in exchange rates do not impact incurred and paid loss development trends.

134			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

• Acquisitions:** We include acquisitions from all accident years presented in the tables. For purposes of this disclosure, we have applied the retrospective method for the acquired reserves, including incurred and paid claim development histories throughout the relevant tables. It should be noted that historical reserves for the acquired businesses were established by the acquired companies using methods, assumptions and procedures then in effect which may differ from our current reserving bases. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on the aggregated historical results shown in the triangles.

• Dispositions:** We exclude dispositions from all accident years presented in the tables.

• Claim counts:** We consider a reported claim to be one claim for each claimant or feature for each loss occurrence. Claims relating to losses that are 100 percent reinsured are excluded from the reported claims in the tables below. Reported claims for losses from assumed reinsurance contracts are not available and hence not included in the reported claims.

There are limitations that should be considered on the reported claim count data in the tables below, including:

–Claim counts are presented only on a reported (not an ultimate) basis;

–The tables below include lines of business and geographies at a certain aggregated level which may indicate different frequency and severity trends and characteristics, and may not be as meaningful as the claim count information related to the individual products within those lines of business and geographies;

–Certain lines of business are more likely to be subject to occurrences involving multiple claimants and features, which can distort measures based on the reported claim counts in the table below; and

–Reported claim counts are not adjusted for ceded reinsurance, which may distort the measure of frequency or severity.

Supplemental Information: The information about incurred and paid loss development for all periods preceding the year ended December 31, 2025 and the related historical claims payout percentage disclosure is unaudited and is presented as supplementary information.

The following tables present undiscounted, incurred and paid losses and allocated loss adjustment expenses by accident year, on a net basis after reinsurance:

U.S. Workers' Compensation

U.S. Workers’ Compensation is an extremely long-tail line of business, with loss emergence extending for decades. Many of our workers’ compensation policies contain risk-sharing features, including high deductibles, self-insured retentions or retrospective rating features, in addition to a traditional insurance component. These risk-sharing programs generally are large and complex, comprising multiple products, years and structures, and are subject to amendment over time. We group guaranteed cost and excess of deductible business separately and then further by state and industry subset to the extent that meaningful differences are determined to exist. We also separately analyze certain subsets of the portfolio that have unique characteristics (e.g., U.S. government sub-contractor accounts and construction wrap-up business). For excess of deductible business, we also segment by size of deductible and whether the claim is handled by AIG or an outside third-party administrator. The proportion of large deductible business has increased over time, which has slowed the reporting pattern of claims.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

			Years Ended December 31, (in millions)																																	December 31, 2025
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025						Total of IBNR Liabilities Plus Expected Development on Reported Losses			Cumulative Number of Reported Claims
			Unaudited
2016			$	1,299		$	1,346		$	1,318		$	1,140		$	1,090		$	1,075		$	1,036		$	1,025		$	986		$	957					$	137		32,431
2017						789			850			776			763			731			712			705			673			664						158			28,371
2018									998			1,021			961			911			896			875			786			769						167			22,736
2019												887			873			812			801			788			730			684						141			17,596
2020															597			573			521			477			434			421						86			14,305
2021																		597			570			545			514			533						197			11,490
2022																					523			493			464			496						202			10,079
2023																								500			465			476						222			9,332
2024																											567			540						280			7,683
2025																														535						484			5,476
Total																														$	6,075

AIG | 2025 Form 10-K			135

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

			Years Ended December 31, (in millions)
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025
			Unaudited
2016			$	147		$	378		$	521		$	584		$	630		$	662		$	686		$	694		$	708		$	715
2017						93			224			294			333			367			389			395			402			407
2018									85			215			296			359			388			409			448			459
2019												93			219			301			347			389			417			431
2020															64			159			205			245			259			279
2021																		60			128			171			211			241
2022																					45			102			143			189
2023																								38			103			144
2024																											35			104
2025																														35
Total																														$	3,004

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance including ADC

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	374
Accident Years 2016-2025 from tables above																														3,071
All Accident Years																														$	3,445

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance including ADC

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	10
Accident Years 2016-2025 from tables above																														(79)
All Accident Years																														(69)
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years																														(44)
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years																														$	(113)

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year			1			2			3			4			5			6			7			8			9			10
U.S. Workers' Compensation			11.0		%	17.0		%	10.5		%	7.7		%	4.8		%	3.6		%	2.6		%	1.1		%	1.1		%	0.8		%

U.S. Excess Casualty

U.S. Excess Casualty policies tend to attach at a high layer above underlying policies, which causes the loss development pattern to lag significantly. Many of the claims notified to the excess layers are closed without payment because the claims never reach our layer as a result of high deductibles and other underlying coverages, while the claims that reach our layer can have large case reserves or settlements and be highly variable in terms of reported timing and amount. For a portion of this business, the underlying primary policies are issued by other insurance companies, which can limit our access to relevant information to help inform our judgments as the loss events evolve and mature. Furthermore, this coverage is often significantly impacted by the underwriting cycle and external judicial trends.

Recent accident years reflect a strategy towards having higher attachment points on the portfolio through changing participations in various layers within an insured’s program.

136			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

			Years Ended December 31, (in millions)																																	December 31, 2025
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025						Total of IBNR Liabilities Plus Expected Development on Reported Losses			Cumulative Number of Reported Claims
			Unaudited
2016			$	898		$	1,146		$	1,162		$	1,171		$	1,274		$	1,250		$	1,263		$	1,276		$	1,317		$	1,305					$	226		3,064
2017						856			1,002			1,097			1,153			1,157			1,200			1,182			1,228			1,270						257			2,358
2018									648			646			721			769			769			779			779			762						110			1,764
2019												577			583			597			612			600			604			584						225			1,588
2020															406			413			410			420			404			395						166			1,570
2021																		278			277			274			358			383						113			1,196
2022																					305			305			333			369						104			824
2023																								345			348			373						179			740
2024																											315			315						214			446
2025																														459						451			185
Total																														$	6,215

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

			Years Ended December 31, (in millions)
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025
			Unaudited
2016			$	28		$	80		$	204		$	388		$	502		$	566		$	670		$	798		$	851		$	986
2017						1			45			156			505			585			676			781			860			898
2018									1			125			227			315			414			494			527			579
2019												7			43			79			157			216			253			282
2020															4			15			33			128			188			209
2021																		4			43			62			161			207
2022																					14			51			96			177
2023																								1			89			115
2024																											—			59
2025																														5
Total																														$	3,517

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance including ADC

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	455
Accident Years 2016-2025 from tables above																														2,698
All Accident Years																														$	3,153

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance including ADC

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	(2)
Accident Years 2016-2025 from tables above																														70
All Accident Years																														68
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years																														14
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years																														$	82

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year			1			2			3			4			5			6			7			8			9			10
U.S. Excess Casualty			1.1		%	10.6		%	8.3		%	19.7		%	10.9		%	6.9		%	6.4		%	7.6		%	3.5		%	10.4		%

AIG | 2025 Form 10-K			137

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

U.S. Other Casualty

U.S. Other Casualty includes general liability, automobile liability, environmental, medical malpractice, and other casualty lines of business. These lines of business are all long-tail in nature and while somewhat diverse in terms of exposures, these lines are often subject to similar trends. These lines are often significantly impacted by the underwriting cycle and external judicial trends. Many of our policies contain risk-sharing features, including high deductibles, self-insured retentions or retrospective rating features, in addition to a traditional insurance component. These risk-sharing programs generally are large and complex, comprising multiple products, years and structures, and are subject to amendment over time.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

			Years Ended December 31, (in millions)																																	December 31, 2025
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025						Total of IBNR Liabilities Plus Expected Development on Reported Losses			Cumulative Number of Reported Claims
			Unaudited
2016			$	1,339		$	1,343		$	1,321		$	1,391		$	1,340		$	1,323		$	1,293		$	1,297		$	1,264		$	1,241					$	35		29,467
2017						602			629			738			674			668			643			654			662			654						21			21,436
2018									802			845			837			870			824			810			841			852						115			17,192
2019												1,059			1,058			1,053			1,062			1,039			1,024			1,009						432			21,479
2020															524			576			538			540			519			499						166			11,792
2021																		795			793			790			818			845						461			11,552
2022																					793			819			827			861						495			14,193
2023																								933			955			983						698			14,983
2024																											840			871						709			11,999
2025																														876						734			7,487
Total																														$	8,691

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

			Years Ended December 31, (in millions)
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025
			Unaudited
2016			$	77		$	298		$	489		$	703		$	846		$	938		$	1,018		$	1,074		$	1,144		$	1,173
2017						51			111			216			314			455			527			592			613			615
2018									43			122			227			360			470			565			636			685
2019												53			138			226			321			410			474			510
2020															26			73			139			198			252			301
2021																		32			87			169			265			351
2022																					38			112			195			299
2023																								36			102			205
2024																											37			128
2025																														62
Total																														$	4,329

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance including ADC

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	289
Accident Years 2016-2025 from tables above																														4,362
All Accident Years																														$	4,651

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance including ADC

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	(62)
Accident Years 2016-2025 from tables above																														65
All Accident Years																														3
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years																														19
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years																														$	22

138			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year			1			2			3			4			5			6			7			8			9			10
U.S. Other Casualty			5.3		%	9.6		%	11.9		%	13.2		%	12.6		%	9.2		%	7.1		%	4.5		%	2.9		%	2.3		%

U.S. Financial Lines

U.S. Financial Lines business includes D&O, Errors and Omissions (E&O), Employment Practices Liability Insurance policies and various professional liability subsets of business, as well as the fidelity book of business. This includes cyber coverage and mergers and acquisitions coverage, which have been a growing and evolving portion of this portfolio. These product lines are predominantly claims-made in nature, losses are characterized by low frequency and high severity, and results are often significantly impacted by external economic conditions.

Our analysis is segmented by major coverages, such as D&O, E&O, etc. and then further segmented by major industry groups (e.g. corporate accounts, national accounts, financial institutions, private/not-for-profit, etc.). We also separately review primary business from excess business for certain product lines.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

			Years Ended December 31, (in millions)																																	December 31, 2025
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025						Total of IBNR Liabilities Plus Expected Development on Reported Losses			Cumulative Number of Reported Claims
			Unaudited
2016			$	1,605		$	1,855		$	1,993		$	2,064		$	2,139		$	2,281		$	2,325		$	2,308		$	2,322		$	2,345					$	95		16,143
2017						1,564			1,675			1,756			1,846			1,898			1,987			1,957			1,969			1,966						108			15,293
2018									1,640			1,766			1,882			2,063			2,225			2,322			2,282			2,260						291			14,867
2019												1,503			1,536			1,627			1,926			1,912			1,945			1,961						266			13,406
2020															1,213			1,252			1,408			1,457			1,470			1,480						162			10,495
2021																		1,430			1,408			1,388			1,316			1,244						514			7,280
2022																					1,130			1,108			1,105			1,057						695			5,985
2023																								1,043			1,041			1,075						574			7,100
2024																											942			955						636			7,791
2025																														999						927			8,079
Total																														$	15,342

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

			Years Ended December 31, (in millions)
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025
			Unaudited
2016			$	73		$	499		$	1,002		$	1,358		$	1,659		$	1,826		$	1,903		$	2,039		$	2,115		$	2,169
2017						64			391			761			1,118			1,396			1,515			1,653			1,777			1,805
2018									86			486			835			1,126			1,415			1,601			1,776			1,879
2019												94			367			642			953			1,204			1,423			1,575
2020															84			356			648			915			1,063			1,171
2021																		43			151			315			468			628
2022																					30			109			177			293
2023																								46			150			324
2024																											44			216
2025																														40
Total																														$	10,100

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance including ADC

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	28
Accident Years 2016-2025 from tables above																														5,242
All Accident Years																														$	5,270

AIG | 2025 Form 10-K			139

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance including ADC

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	20
Accident Years 2016-2025 from tables above																														(49)
All Accident Years																														(29)
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years																														(16)
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years																														$	(45)

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year			1			2			3			4			5			6			7			8			9			10
U.S. Financial Lines			4.0		%	14.3		%	15.7		%	14.8		%	12.5		%	8.0		%	6.5		%	5.5		%	2.3		%	2.3		%

U.S. Property and Special Risks

U.S. Property products include commercial, industrial and energy-related property insurance products and services that cover exposures to manmade and natural disasters, including business interruption. U.S. Special Risk products include aerospace, environmental, political risk, trade credit, surety and marine insurance, and program business for various small and medium sized enterprises insurance lines. The program segments include both property and casualty exposures. Recent years have seen an increasing proportion of non-admitted coverages which has altered the underlying customer profile to be less severe in the aggregate.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

			Years Ended December 31, (in millions)																																	December 31, 2025
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025						Total of IBNR Liabilities Plus Expected Development on Reported Losses			Cumulative Number of Reported Claims
			Unaudited
2016			$	2,674		$	2,748		$	2,690		$	2,697		$	2,707		$	2,694		$	2,700		$	2,713		$	2,727		$	2,731					$	6		54,963
2017						4,569			4,239			4,127			4,153			4,173			4,212			4,175			4,187			4,178						6			79,982
2018									2,978			2,993			2,992			3,229			3,201			3,210			3,204			3,203						10			70,274
2019												2,177			2,146			2,211			2,222			2,177			2,198			2,215						24			79,150
2020															3,391			3,320			3,280			3,238			3,269			3,289						464			69,329
2021																		2,339			2,213			2,160			2,190			2,180						92			82,535
2022																					3,171			3,281			3,240			3,234						249			87,066
2023																								2,528			2,440			2,367						326			100,257
2024																											1,844			1,714						426			31,463
2025																														2,097						739			22,479
Total																														$	27,208

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

			Years Ended December 31, (in millions)
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025
			Unaudited
2016			$	821		$	1,747		$	2,076		$	2,296		$	2,464		$	2,539		$	2,616		$	2,647		$	2,679		$	2,688
2017						1,137			2,625			3,281			3,638			3,897			3,999			4,055			4,129			4,151
2018									977			2,162			2,509			2,715			2,863			2,994			3,094			3,144
2019												1,039			1,673			1,906			2,037			2,083			2,124			2,176
2020															844			1,613			1,874			2,190			2,414			2,657
2021																		878			1,743			1,983			2,004			2,061
2022																					1,208			2,207			2,437			2,769
2023																								1,173			1,692			1,878
2024																											667			1,012
2025																														784
Total																														$	23,320

140			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance including ADC

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	254
Accident Years 2016-2025 from tables above																														3,888
All Accident Years																														$	4,142

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance including ADC

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	34
Accident Years 2016-2025 from tables above																														(188)
All Accident Years																														(154)
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years																														4
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years																														$	(150)

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year			1			2			3			4			5			6			7			8			9			10
U.S. Property and Special Risks			36.4		%	30.1		%	10.4		%	7.1		%	4.7		%	3.7		%	2.4		%	1.5		%	0.9		%	0.3		%

U.S. Personal Insurance

U.S. Personal Insurance consists of accident and health and personal lines. Accident and health products include voluntary and sponsor-paid personal accident and supplemental health products for individuals, employees, associations and other organizations as well as a broad range of travel insurance products and services for leisure and business travelers. Personal lines include automobile and homeowners’ insurance, extended warranty, and consumer specialty products, such as identity theft and credit card protection. Personal lines also provides insurance for high net worth individuals, including auto, homeowners, umbrella, yacht, fine art and collections insurance. Personal lines are generally short-tail in nature and can reflect significant salvage and subrogation recoveries.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

			Years Ended December 31, (in millions)																																	December 31, 2025
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025						Total of IBNR Liabilities Plus Expected Development on Reported Losses			Cumulative Number of Reported Claims
			Unaudited
2016			$	1,536		$	1,533		$	1,533		$	1,540		$	1,542		$	1,544		$	1,544		$	1,541		$	1,541		$	1,540					$	16		247,862
2017						1,878			2,137			2,011			2,057			1,924			1,916			1,896			1,899			1,898						12			220,439
2018									2,188			2,193			2,154			1,937			1,936			1,920			1,927			1,924						24			102,585
2019												1,593			1,664			1,646			1,596			1,578			1,569			1,565						45			94,184
2020															954			906			913			894			890			888						37			56,199
2021																		748			765			762			752			747						53			57,895
2022																					517			529			525			523						51			56,476
2023																								677			668			688						53			50,195
2024																											604			594						67			41,541
2025																														429						216			23,548
Total																														$	10,796

AIG | 2025 Form 10-K			141

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

			Years Ended December 31, (in millions)
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025
			Unaudited
2016			$	857		$	1,344		$	1,422		$	1,460		$	1,501		$	1,512		$	1,518		$	1,521		$	1,521		$	1,522
2017						941			1,672			1,896			1,789			1,826			1,852			1,861			1,878			1,884
2018									1,227			1,939			1,973			1,789			1,832			1,849			1,881			1,900
2019												884			1,295			1,379			1,416			1,491			1,516			1,517
2020															667			679			725			824			846			850
2021																		488			650			658			662			676
2022																					372			401			406			464
2023																								400			522			579
2024																											273			516
2025																														142
Total																														$	10,050

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance including ADC

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	(41)
Accident Years 2016-2025 from tables above																														746
All Accident Years																														$	705

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance including ADC

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	(1)
Accident Years 2016-2025 from tables above																														(8)
All Accident Years																														(9)
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years																														(2)
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years																														$	(11)

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year			1			2			3			4			5			6			7			8			9			10
U.S. Personal Insurance			57.4		%	24.5		%	4.9		%	1.8		%	2.6		%	1.0		%	0.7		%	0.7		%	0.2		%	0.1		%

UK/Europe Casualty and Financial Lines

UK/Europe is our largest non-U.S. region for Liability and Financial Lines. UK/Europe Casualty and Financial Lines is composed of third-party coverages including general liability, auto liability, D&O, professional liability and various other coverages throughout both the UK and Continental Europe. These areas are all long-tail in nature and while somewhat diverse in terms of exposures, these lines are often subject to similar trends. These lines are impacted by the underwriting cycle and external judicial trends. The largest share of business is in the UK, but significant business is also written in other European countries such as Germany, France, and Italy.

142			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

			Years Ended December 31, (in millions)																																	December 31, 2025
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025						Total of IBNR Liabilities Plus Expected Development on Reported Losses			Cumulative Number of Reported Claims
			Unaudited
2016			$	1,392		$	1,482		$	1,561		$	1,566		$	1,685		$	1,674		$	1,686		$	1,687		$	1,766		$	1,819					$	194		142,980
2017						1,423			1,349			1,310			1,418			1,449			1,434			1,473			1,520			1,533						162			150,034
2018									1,413			1,465			1,569			1,600			1,696			1,742			1,831			1,849						263			151,989
2019												1,297			1,554			1,404			1,420			1,407			1,417			1,480						243			143,228
2020															1,319			1,338			1,278			1,266			1,215			1,180						252			86,594
2021																		1,443			1,404			1,398			1,357			1,304						458			78,019
2022																					1,370			1,320			1,279			1,293						621			75,486
2023																								1,361			1,337			1,364						741			71,761
2024																											1,389			1,428						919			73,433
2025																														1,350						1,132			61,557
Total																														$	14,600

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

			Years Ended December 31, (in millions)
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025
			Unaudited
2016			$	125		$	399		$	616		$	812		$	975		$	1,108		$	1,221		$	1,316		$	1,359		$	1,418
2017						102			295			471			631			789			938			1,007			1,115			1,180
2018									120			392			599			778			944			1,179			1,275			1,365
2019												103			325			504			691			797			920			1,023
2020															63			239			385			533			630			720
2021																		54			244			361			474			610
2022																					60			195			310			404
2023																								38			200			335
2024																											63			222
2025																														62
Total																														$	7,339

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	1,027
Accident Years 2016- from tables above																														7,261
All Accident Years																														$	8,288

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	7
Accident Years 2016- from tables above																														139
All Accident Years																														146
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance, All Accident Years																														70
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance, All Accident Years																														$	216

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year			1			2			3			4			5			6			7			8			9			10
UK/Europe Casualty and Financial Lines			5.3		%	13.4		%	10.9		%	10.3		%	9.0		%	9.1		%	5.7		%	5.7		%	3.3		%	3.2		%

AIG | 2025 Form 10-K			143

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

UK/Europe Property and Special Risks

UK/Europe Property products include commercial, industrial and energy-related property insurance products and services that cover exposures to manmade and natural disasters, including business interruption. UK/Europe Special Risk products include aerospace, environmental, political risk, trade credit, surety and marine insurance, and various small and medium sized enterprises insurance lines.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

			Years Ended December 31, (in millions)																																	December 31, 2025
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025						Total of IBNR Liabilities Plus Expected Development on Reported Losses			Cumulative Number of Reported Claims
			Unaudited
2016			$	1,645		$	1,740		$	1,762		$	1,737		$	1,733		$	1,727		$	1,663		$	1,659		$	1,651		$	1,629					$	17		57,394
2017						1,671			1,674			1,648			1,654			1,639			1,605			1,603			1,604			1,601						(2)			53,611
2018									1,678			1,605			1,580			1,567			1,514			1,514			1,500			1,491						7			44,446
2019												1,172			1,133			1,132			1,122			1,126			1,130			1,112						54			34,054
2020															1,324			1,264			1,224			1,247			1,242			1,224						(2)			26,576
2021																		1,048			1,011			962			987			972						69			23,384
2022																					1,150			1,308			1,282			1,288						272			25,559
2023																								1,090			1,086			1,060						135			24,666
2024																											1,177			1,260						189			24,338
2025																														1,334						585			17,987
Total																														$	12,971

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

			Years Ended December 31, (in millions)
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025
			Unaudited
2016			$	472		$	1,154		$	1,412		$	1,550		$	1,596		$	1,625		$	1,643		$	1,618		$	1,621		$	1,616
2017						363			968			1,255			1,399			1,458			1,497			1,512			1,518			1,529
2018									326			1,008			1,199			1,331			1,347			1,382			1,407			1,424
2019												273			672			846			935			981			1,013			1,007
2020															254			683			836			934			1,048			1,131
2021																		194			519			711			779			809
2022																					198			684			1,145			1,866
2023																								161			537			744
2024																											206			554
2025																														205
Total																														$	10,885

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	90
Accident Years 2016- from tables above																														2,086
All Accident Years																														$	2,176

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	(9)
Accident Years 2016- from tables above																														(22)
All Accident Years																														(31)
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance, All Accident Years																														17
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance, All Accident Years																														$	(14)

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year			1			2			3			4			5			6			7			8			9			10
UK/Europe Property and Special Risks			20.1		%	36.7		%	18.7		%	15.0		%	4.0		%	3.2		%	0.8		%	—		%	0.4		%	(0.3		%)

144			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

UK/Europe and Japan Personal Insurance

UK/Europe and Japan Personal Insurance lines consist of accident and health and personal lines. Accident and health products include voluntary and sponsor-paid personal accident and supplemental health products for individuals, employees, associations and other organizations as well as a broad range of travel insurance products and services for leisure and business travelers. Personal lines include automobile and homeowners’ insurance, extended warranty, and consumer specialty products, such as identity theft and credit card protection. Personal lines are generally short-tail in nature.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

			Years Ended December 31, (in millions)																																	December 31, 2025
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025						Total of IBNR Liabilities Plus Expected Development on Reported Losses			Cumulative Number of Reported Claims
			Unaudited
2016			$	2,146		$	2,140		$	2,147		$	2,143		$	2,140		$	2,137		$	2,130		$	2,131		$	2,127		$	2,128					$	2		1,794,526
2017						2,064			2,041			2,027			2,022			2,039			2,022			2,032			2,028			2,032						5			1,719,905
2018									2,423			2,329			2,323			2,295			2,317			2,317			2,306			2,305						(1)			1,918,168
2019												1,981			1,936			1,899			1,888			1,879			1,885			1,884						2			1,677,776
2020															1,815			1,683			1,627			1,613			1,603			1,603						2			1,394,864
2021																		1,687			1,638			1,613			1,611			1,612						11			1,396,679
2022																					1,788			1,809			1,747			1,742						19			2,079,335
2023																								1,607			1,578			1,566						36			1,456,046
2024																											1,514			1,511						41			1,422,120
2025																														1,445						217			1,221,216
Total																														$	17,828

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

			Years Ended December 31, (in millions)
Accident Year			2016			2017			2018			2019			2020			2021			2022			2023			2024			2025
			Unaudited
2016			$	1,175		$	1,760		$	1,935		$	2,021		$	2,066		$	2,091		$	2,106		$	2,111		$	2,116		$	2,117
2017						1,153			1,718			1,871			1,939			1,974			1,995			1,993			2,003			2,010
2018									1,448			1,946			2,099			2,178			2,219			2,267			2,286			2,293
2019												1,156			1,628			1,746			1,806			1,828			1,849			1,864
2020															969			1,396			1,496			1,533			1,560			1,576
2021																		952			1,352			1,457			1,518			1,543
2022																					1,038			1,485			1,600			1,654
2023																								906			1,329			1,437
2024																											872			1,278
2025																														860
Total																														$	16,632

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	44
Accident Years 2016- from tables above																														1,196
All Accident Years																														$	1,240

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance

(in millions)																														Year Ended December 31, 2025
Accident Years prior to 2016																														$	—
Accident Years 2016- from tables above																														(16)
All Accident Years																														(16)
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance, All Accident Years																														53
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance, All Accident Years																														$	37

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year			1			2			3			4			5			6			7			8			9			10
UK/Europe and Japan Personal Insurance			59.0		%	25.9		%	6.9		%	3.3		%	1.7		%	1.3		%	0.6		%	0.3		%	0.3		%	—		%

AIG | 2025 Form 10-K			145

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

DISCOUNTING OF LOSS RESERVES

At December 31, 2025 and 2024, the loss reserves reflect a net loss reserve discount of $1.2 billion and $1.2 billion, respectively, including tabular and non-tabular calculations based upon the following assumptions:

• The non-tabular workers’ compensation discount is calculated separately for companies domiciled in New York, Pennsylvania and Delaware, and follows the statutory regulations (prescribed or historically permitted) for each state.

–For New York companies, the discount is based on a 5 percent interest rate and the companies’ own payout patterns.

–The Pennsylvania and Delaware regulators have approved use of a consistent benchmark discount rate and spread (U.S. Treasury rate plus a liquidity premium), subject to a 4.5 percent maximum as stipulated by Delaware, to all of our workers’ compensation reserves in our Pennsylvania domiciled and Delaware domiciled companies, as well as our use of updated payout patterns specific to our primary and excess workers compensation portfolios. In 2020, the regulators also approved that the discount rate will be updated on an annual basis, which was 4.5 percent at December 31, 2025 and 2024.

• The tabular workers’ compensation discount is calculated based on the mortality rate used in the 2007 U.S. Life table and interest rates prescribed or permitted by each state (i.e. New York is based on 5 percent interest rate and Pennsylvania and Delaware are based on U.S. Treasury rate plus a liquidity premium). In the case that applying this tabular discount factor to our nominal reserves produces a tabular discount that is greater than the indemnity portion of our case reserves, the tabular discount is capped at our estimate of the indemnity portion of our case reserves (45 percent).

The discount for asbestos reserves has been fully accreted.

At December 31, 2025 and 2024, the discount consists of $141 million and $107 million of tabular discount, respectively, and $1.0 billion and $1.1 billion of non-tabular discount for workers’ compensation, respectively. During the years ended December 31, 2025, 2024 and 2023, the benefit / (charge) from changes in discount of $(48) million, $(226) million and $(195) million, respectively, were recorded as part of Losses and loss adjustment expenses incurred in the Consolidated Statements of Income (Loss).

The following table presents the components of the loss reserve discount discussed above:

(in millions)						December 31, 2025						December 31, 2024
U.S. workers' compensation			$			2,063			$			2,111
Retroactive reinsurance						(891)						(936)
Total reserve discount**(a)(b)**			$			1,172			$			1,175

(a)Excludes $166 million and $184 million of discount related to certain long-tail liabilities in the UK at December 31, 2025 and 2024, respectively.

(b)Includes gross discount of $693 million and $627 million, which was 100 percent ceded to Fortitude Re at December 31, 2025 and 2024, respectively.

The following table presents the net loss reserve discount benefit (charge):

									Years Ended December 31,
(in millions)																					2025						2024						2023
Current accident year																		$			120			$			128			$			112
Accretion and other adjustments to prior year discount																					(168)						(303)						(264)
Effect of interest rate changes																					—						(51)						(43)
Net reserve discount benefit (charge)																					(48)						(226)						(195)
Change in discount on loss reserves ceded under retroactive reinsurance																					45						168						150
Net change in total reserve discount*																		$			(3)			$			(58)			$			(45)

*Excludes $(18) million, $(12) million and $61 million of discount related to certain long-tail liabilities in the UK for the years ended December 31, 2025, 2024 and 2023, respectively.

During 2025, net change in total reserve discount was impacted by updates to future payouts. There was no change in discount rate during the year due to a statutory cap.

During 2024, net change in total reserve discount was impacted by updates to future payouts, and despite increases in U.S. Treasury rates, the updated discount rate resulted in a decrease in the total reserve discount due to the implementation of a statutory cap.

During 2023, net change in total reserve discount was impacted by updates to future payouts, along with a decrease in the discount rate due to an increase in U.S. Treasury rates being offset by a decrease in the discount spread.

Amortization of Deferred Gain on Retroactive Reinsurance

Amortization of the deferred gain on retroactive reinsurance includes $158 million, $322 million and $48 million related to the adverse development reinsurance cover with NICO for the years ended December 31, 2025, 2024 and 2023, respectively.

146			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 13. Insurance Liabilities

Amounts recognized reflect the amortization of the initial deferred gain at inception, as amended for subsequent changes in the deferred gain due to changes in subject reserves.

FUTURE POLICY BENEFITS

Future policy benefits primarily include reserves for certain long-duration contracts that are 100 percent ceded of $797 million and $691 million at December 31, 2025 and 2024, respectively, certain other long-duration contracts of $583 million and $621 million at December 31, 2025 and 2024, respectively, and Global Accident & Health contracts.

14. Debt

Our long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts, hedge accounting valuation adjustments and fair value adjustments, when applicable.

The following table lists our total debt outstanding at December 31, 2025 and 2024. The interest rates presented in the following table are the range of contractual rates in effect at December 31, 2025, including fixed and variable-rates:

At December 31, 2025			Range of Interest Rate(s)			Maturity Date(s)			Balance at December 31, 2025						Balance at December 31, 2024
(in millions)
General borrowings:
Notes and bonds payable			1.58% - 6.82%			2026 - 2055			$			8,529			$			7,885
Junior subordinated debt			5.75% - 8.18%			2037 - 2058						481						602
AIG Japan Holdings Kabushiki Kaisha												—						239
Total general borrowings												9,010						8,726
Borrowings supported by assets			3.77% - 7.00%			2026 - 2046						25						37
Other subsidiaries' notes, bonds, loans and mortgages payable - not guaranteed by AIG												—						1
Total long-term debt												9,035						8,764
Debt of consolidated investment entities - not guaranteed by AIG*			4.15% - 4.48%			2026 - 2028						156						158
Total debt									$			9,191			$			8,922

*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.

The following table presents maturities of long-term debt (including unamortized original issue discount, hedge accounting valuation adjustments and fair value adjustments, when applicable):

December 31, 2025																		Year Ending
(in millions)						Total												2026						2027						2028						2029						2030						Thereafter
General borrowings:
Notes and bonds payable			$			8,529									$			29			$			963			$			692			$			205			$			959						$	5,681
Junior subordinated debt						481												—						—						—						—						—						481
Total general borrowings						9,010												29						963						692						205						959						6,162
Borrowings supported by assets						25												7						—						—						—						—						18
Total long-term debt*			$			9,035									$			36			$			963			$			692			$			205			$			959						$	6,180

*Does not reflect $156 million of notes issued by consolidated investment entities, for which recourse is limited to the assets of the respective investment entities and for which there is no recourse to the general credit of AIG.

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.

AIG | 2025 Form 10-K			147

ITEM 8 | Notes to Consolidated Financial Statements | 14. Debt

DEBT CASH TENDER OFFERS AND REDEMPTIONS

In 2025, we repaid, redeemed and/or repurchased $1.1 billion aggregate principal amount of certain notes and debentures issued or guaranteed by AIG, for an aggregate purchase price of $1.1 billion, resulting in a total gain on extinguishment of debt of $5 million. This includes the following:

• 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.

CREDIT FACILITIES

On September 27, 2024, AIG entered into the amended and restated credit agreement (Amended Credit Agreement) that amends and restates AIG's credit agreement, dated as of November 19, 2021, which provides for a syndicated, multicurrency revolving credit facility as a potential source of liquidity for general corporate purposes. The Amended Credit Agreement provides for a five-year total commitment of $3.0 billion, consisting of standby letters of credit and/or revolving credit borrowings. Under circumstances described in the Amended Credit Agreement, the aggregate commitments may be increased by up to $1.5 billion, for a total commitment of up to $4.5 billion. Under the Amended Credit Agreement, the applicable rate, commitment fee and letter of credit fee are determined by reference to the credit ratings of AIG’s senior long-term unsecured debt. The Amended Credit Agreement is scheduled to expire in September 2029.

As of December 31, 2025, there were no borrowings or letters of credit outstanding under the Amended Credit Agreement, so that a total of approximately $3.0 billion remains available under the Amended Credit Agreement.

15. Contingencies, Commitments and Guarantees

In the normal course of business, we enter into various contingent liabilities and commitments. In addition, AIG Parent guarantees various obligations of certain subsidiaries.

Although we cannot currently quantify our ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on our consolidated financial condition or consolidated results of operations or consolidated cash flows for an individual reporting period.

LEGAL CONTINGENCIES

In the normal course of business, we are subject to regulatory and government investigations and actions, and litigation and other forms of dispute resolution in a large number of proceedings pending in various domestic and foreign jurisdictions. Certain of these matters involve potentially significant risk of loss due to potential for significant jury awards and settlements, punitive damages or other penalties. Many of these matters are also highly complex and may seek recovery on behalf of a class or similarly large number of plaintiffs. It is therefore inherently difficult to predict the size or scope of potential future losses arising from these matters. In our insurance and reinsurance operations, litigation and arbitration concerning the scope of coverage under insurance and reinsurance contracts, and litigation and arbitration in which our subsidiaries defend or indemnify their insureds under insurance contracts, are generally considered in the establishment of our loss reserves. Separate and apart from the foregoing matters involving insurance and reinsurance coverage, AIG Parent, our subsidiaries and their respective officers and directors are subject to a variety of additional types of legal proceedings brought by holders of AIG securities, customers, employees and others, alleging, among other things, breach of contractual or fiduciary duties, bad faith, indemnification and violations of federal and state statutes and regulations. With respect to these other categories of matters not arising out of claims for insurance or reinsurance coverage, we establish reserves for loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In many instances, we are unable to determine whether a loss is probable or to reasonably estimate the amount of such a loss and, therefore, the potential future losses arising from legal proceedings may exceed the amount of liabilities that we have recorded in our financial statements covering these matters. While such potential future charges could be material, based on information currently known to management, management does not believe that any such charges are likely to have a material adverse effect on our financial position or results of operation.

148			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 15. Contingencies, Commitments and Guarantees

Additionally, from time to time, various regulatory and governmental agencies review our transactions and practices in connection with industry-wide and other inquiries or examinations into, among other matters, the business practices of current and former operating insurance subsidiaries. Such investigations, inquiries or examinations could develop into administrative, civil or criminal proceedings or enforcement actions, in which remedies could include fines, penalties, restitution or alterations in our business practices, and could result in additional expenses, limitations on certain business activities and reputational damage.

LEASE COMMITMENTS

We lease office space and equipment in various locations across jurisdictions in which the Company operates. The majority of the resulting obligation arising from these contracts is generated by our real estate portfolio, which only includes contracts classified as operating leases. The lease liability and corresponding right of use asset reflected in Other liabilities and Other assets were $856 million and $690 million, respectively, at December 31, 2025, and $868 million and $696 million, respectively, at December 31, 2024. We made cash payments of $156 million and $177 million in 2025 and 2024, respectively, in connection with these leases. The liability includes non-lease components, such as property taxes and insurance for our gross leases. Some of these leases contain options to renew after a specified period of time at the prevailing market rate; however, renewal options that have not been exercised as of December 31, 2025 are excluded until management attains a reasonable level of certainty. Some leases also include termination options at specified times and term; however, termination options are not reflected in the lease asset and liability balances until they have been exercised.

The weighted average discount rate and lease term assumptions used in determining the liability are 3.24 percent and 9.9 years, respectively. The primary assumption used to determine the discount rate is the cost of funding for the Company, which is based on the secured borrowing rate for terms similar to the lease term, and for the major financial markets in which AIG operates.

Rent expense was $150 million, $164 million and $162 million for the years ended December 31, 2025, 2024 and 2023, respectively.

The following table presents the future undiscounted cash flows under operating leases at December 31, 2025:

(in millions)
2026			$			129
2027						111
2028						97
2029						95
2030						86
Remaining years after 2030						526
Total undiscounted lease payments						1,044
Less: Present value adjustment						188
Net lease liabilities			$			856

OTHER COMMITMENTS

In the normal course of business, we enter into commitments to invest in limited partnerships, private equity funds and hedge funds and to purchase and develop real estate in the U.S. and abroad. These commitments totaled $1.5 billion and $1.8 billion at December 31, 2025 and 2024, respectively.

GUARANTEES

Subsidiaries

We have issued unconditional guarantees with respect to the prompt payment, when due, of all present and future payment obligations and liabilities of AIGFP and certain of its subsidiaries. We have also issued guarantees of all present and future payment obligations and liabilities of AIG Markets, Inc.

Due to the deconsolidation of AIGFP and its subsidiaries, as of December 31, 2025, a $72 million guarantee related to the obligations of AIGFP and certain of its subsidiaries was recognized, and is reported in Other liabilities.

We continue to guarantee certain policyholder contracts issued by Corebridge subsidiaries as well as certain debt issued by Corebridge Life Holdings, Inc. (CRBGLH). Pursuant to the Separation Agreement entered in by AIG and Corebridge on September 14, 2022, Corebridge must indemnify, defend and hold us harmless from and against any liability related to these guarantees. Also, under a collateral agreement, in the event of: (i) a ratings downgrade of Corebridge or the guaranteed debt below specified levels or (ii) the failure by CRBGLH to pay principal and interest on the guaranteed debt when due, Corebridge must collateralize an amount equal to the sum of: (i) 100 percent of the principal amount outstanding, (ii) accrued and unpaid interest and (iii) 100 percent of the net present value of scheduled interest payments through the maturity dates of the debt.

AIG | 2025 Form 10-K			149

ITEM 8 | Notes to Consolidated Financial Statements | 15. Contingencies, Commitments and Guarantees

Business and Asset Dispositions

We are subject to financial guarantees and indemnity arrangements in connection with the completed sales of businesses and assets. The various arrangements may be triggered by, among other things, declines in asset values, the occurrence of specified business contingencies, the realization of contingent liabilities, developments in litigation or breaches of representations, warranties or covenants provided by us. These arrangements are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or are not applicable.

We are unable to develop a reasonable estimate of the maximum potential payout under certain of these arrangements. Overall, we believe the likelihood that we will have to make any material payments related to completed sales under these arrangements is remote, and no material liabilities related to these arrangements have been recorded in the Consolidated Balance Sheets.

Other

*•*For additional information on commitments and guarantees associated with VIEs, see Note 10.

*•*For additional information on derivatives, see Note 11.

16. Equity

SHARES OUTSTANDING

Preferred Stock

On March 14, 2019, we issued 20,000 shares of Series A 5.85% Non-Cumulative Perpetual Preferred Stock (Series A Preferred Stock) (equivalent to 20,000,000 Depositary Shares (the Depositary Shares), each representing a 1/1,000th interest in a share of Series A Preferred Stock), $5.00 par value and $25,000 liquidation preference per share (equivalent to $25 per Depositary Share).

On March 15, 2024, we redeemed all 20,000 outstanding shares of our Series A Preferred Stock and all 20,000,000 of the corresponding Depositary Shares, each representing a 1/1,000th interest in a share of Series A Preferred Stock, for a redemption price of $25,000 per share (equivalent to $25.00 per Depositary Share) for an aggregate redemption price of $500 million, paid in cash. The $15 million difference between the aggregate redemption price and the outstanding par and additional paid in capital amount of $485 million was recorded as a reduction of retained earnings and is presented on Dividends on preferred stock and preferred stock redemption premiums on the Consolidated Statements of Income.

Common Stock

The following table presents a rollforward of outstanding shares:

Years Ended December 31,			2025												2024												2023
(in millions)			Common Stock Issued			Treasury Stock			Common Stock Outstanding						Common Stock Issued			Treasury Stock			Common Stock Outstanding						Common Stock Issued			Treasury Stock			Common Stock Outstanding
Shares, beginning of year			1,906.7			(1,300.6)			606.1						1,906.7			(1,217.9)			688.8						1,906.7			(1,172.6)			734.1
Shares issued			—			5.0			5.0						—			6.8			6.8						—			5.5			5.5
Shares repurchased			—			(72.9)			(72.9)						—			(89.5)			(89.5)						—			(50.8)			(50.8)
Shares, end of year			1,906.7			(1,368.5)			538.2						1,906.7			(1,300.6)			606.1						1,906.7			(1,217.9)			688.8

Dividends

Dividends are payable on AIG common stock, par value $2.50 per share (AIG Common Stock) only when, as and if declared by our Board of Directors in its discretion, from funds legally available for this purpose. In considering whether to pay a dividend on or purchase shares of AIG Common Stock, our Board of Directors considers a number of factors, including, but not limited to: the capital resources available to support our insurance operations and business strategies, AIG’s funding capacity and capital resources in comparison to internal benchmarks, expectations for capital generation, rating agency expectations for capital, regulatory standards for capital and capital distributions, and such other factors as our Board of Directors may deem relevant.

Repurchase of AIG Common Stock

Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise. Certain of our share repurchases have been and may from time to time be effected through the Securities Exchange Act of 1934, as amended (the Exchange Act) Rule 10b5-1 repurchase plans.

150			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 16. Equity

Effective April 1, 2025, the Board of Directors authorized the repurchase of $7.5 billion of AIG Common Stock (inclusive of the approximately $3.4 billion remaining under the Board's prior share repurchase authorization).

The timing of any future repurchases will depend on market conditions, our business and strategic plans, financial condition, results of operations, liquidity and other factors.

Pursuant to an Exchange Act Rule 10b5-1 repurchase plan, from January 1, 2026 to February 6, 2026, we repurchased approximately 2 million shares of AIG Common Stock for an aggregate purchase price of approximately $125 million.

DIVIDENDS DECLARED

On February 10, 2026, our Board of Directors 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.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents a rollforward of Accumulated other comprehensive income (loss):

(in millions)			Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Allowance for Credit Losses Was Taken						Unrealized Appreciation (Depreciation) of All Other Investments						Change in Fair Value of Market Risk Benefits Attributable to Changes in Our Own Credit Risk						Change in the discount rates used to measure traditional and limited payment long-duration insurance contracts						Foreign Currency Translation Adjustments						Retirement Plan Liabilities Adjustment												Total
Balance, January 1, 2023, net of tax			$			(136)			$			(20,675)			$			(284)			$			2,459			$			(3,056)			$			(924)									$			(22,616)
Change in unrealized appreciation (depreciation) of investments*						30						8,410						—						—						—						—												8,440
Change in other						(10)						52						—						—						—						—												42
Change in fair value of market risk benefits, net						—						—						(695)						—						—						—												(695)
Change in discount rates						—						—						—						(1,045)						—						—												(1,045)
Change in future policy benefits						—						(254)						—						—						—						—												(254)
Change in foreign currency translation adjustments						—						—						—						—						137						—												137
Change in net actuarial loss						—						—						—						—						—						143												143
Change in prior service cost						—						—						—						—						—						4												4
Change in deferred tax asset (liability)						(6)						(1,074)						151						174						(35)						(42)												(832)
Total other comprehensive income						14						7,134						(544)						(871)						102						105												5,940
Add: Corebridge noncontrolling interests						13						4,524						153						(732)						(18)						(2)												3,938
Less: Noncontrolling interests						(3)						1,871						(199)						(377)						7						—												1,299

Balance, December 31, 2023, net of tax			$			(106)			$			(10,888)			$			(476)			$			1,233			$			(2,979)			$			(821)									$			(14,037)
Change in unrealized appreciation (depreciation) of investments*						95						(1,551)						—						—						—						—												(1,456)
Change in other						—						18						—						—						—						—												18
Change in fair value of market risk benefits, net						—						—						130						—						—						—												130
Change in discount rates						—						—						—						946						—						—												946
Change in future policy benefits						—						(59)						—						—						—						—												(59)
Change in foreign currency translation adjustments						—						—						—						—						(407)						—												(407)
Change in net actuarial loss						—						—						—						—						—						63												63
Change in prior service cost						—						—						—						—						—						2												2
Change in deferred tax asset (liability)						(20)						(70)						(28)						(165)						(45)						(18)												(346)
Corebridge deconsolidation, net of tax						42						8,513						330						(1,583)						(88)						—												7,214
Total other comprehensive income (loss)						117						6,851						432						(802)						(540)						47												6,105
Add: Corebridge noncontrolling interests						2						610						33						(105)						(3)						—												537
Less: Noncontrolling interests						17						(559)						(11)						258						(1)						—												(296)

Balance, December 31, 2024, net of tax			$			(4)			$			(2,868)			$			—			$			68			$			(3,521)			$			(774)									$			(7,099)
Change in unrealized appreciation (depreciation) of investments						—						1,448						—						—						—						—												1,448
Change in other						—						(1)						—						—						—						—												(1)
Change in discount rates						—						—						—						28						—						—												28
Change in future policy benefits						—						—						—						—						—						—												—
Change in foreign currency translation adjustments						—						—						—						—						518						—												518
Change in net actuarial loss						—						—						—						—						—						78												78
Change in prior service cost						—						—						—						—						—						1												1
Change in deferred tax asset (liability)						1						48						—						(9)						22						(22)												40
Total other comprehensive income						1						1,495						—						19						540						57												2,112
Less: Noncontrolling interests						—						—						—						—						—						—												—
Balance, December 31, 2025, net of tax			$			(3)			$			(1,373)			$			—			$			87			$			(2,981)			$			(717)									$			(4,987)

*Includes net unrealized gains and losses attributable to businesses held for sale or reclassified to discontinued operations at December 31, 2024 and 2023.

AIG | 2025 Form 10-K			151

ITEM 8 | Notes to Consolidated Financial Statements | 16. Equity

The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2025, 2024 and 2023**, respectively:**

(in millions)			Unrealized Appreciation (Depreciation) of Fixed Maturity Securities on Which Allowance for Credit Losses Was Taken						Unrealized Appreciation (Depreciation) of All Other Investments						Change in Fair Value of Market Risk Benefits Attributable to Changes in Our Own Credit Risk						Change in the discount rates used to measure traditional and limited payment long-duration insurance contracts						Foreign Currency Translation Adjustments						Retirement Plan Liabilities Adjustment												Total
Year Ended December 31, 2025
Unrealized change arising during year			$			—			$			854			$			—			$			28			$			518			$			49									$			1,449
Less: Reclassification adjustments included in net income						—						(593)						—						—						—						(30)												(623)
Total other comprehensive income (loss), before of income tax expense (benefit)						—						1,447						—						28						518						79												2,072
Less: Income tax expense (benefit)						(1)						(48)						—						9						(22)						22												(40)
Total other comprehensive income (loss), net of income tax expense (benefit)			$			1			$			1,495			$			—			$			19			$			540			$			57									$			2,112
Year Ended December 31, 2024
Unrealized change arising during year			$			95			$			(2,211)			$			130			$			946			$			(407)			$			34									$			(1,413)
Less: Reclassification adjustments included in net income						(42)						(9,132)						(330)						1,583						88						(31)												(7,864)
Total other comprehensive income (loss), before income tax expense (benefit)						137						6,921						460						(637)						(495)						65												6,451
Less: Income tax expense (benefit)						20						70						28						165						45						18												346
Total other comprehensive income (loss), net of income tax expense (benefit)			$			117			$			6,851			$			432			$			(802)			$			(540)			$			47									$			6,105
Year Ended December 31, 2023
Unrealized change arising during year			$			(6)			$			7,172			$			(695)			$			(1,045)			$			137			$			118									$			5,681
Less: Reclassification adjustments included in net income						(26)						(1,036)						—						—						—						(29)												(1,091)
Total other comprehensive income (loss), before income tax expense (benefit)						20						8,208						(695)						(1,045)						137						147												6,772
Less: Income tax expense (benefit)						6						1,074						(151)						(174)						35						42												832
Total other comprehensive income (loss), net of income tax expense (benefit)			$			14			$			7,134			$			(544)			$			(871)			$			102			$			105									$			5,940

The following table presents the effect of the reclassification of significant items out of AOCI on the respective line items in the Consolidated Statements of Income (Loss)(a):

			Amount Reclassified from AOCI																					Affected Line Item in the
			Years Ended December 31,																					Consolidated
(in millions)						2025						2024						2023						Statements of Income (Loss)
Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken
Investments			$			—			$			—			$			(26)						Net realized gains (losses)
Total						—						—						(26)
Unrealized appreciation (depreciation) of all other investments
Investments						(593)						(619)						(1,036)						Net realized gains (losses)
Total						(593)						(619)						(1,036)
Change in retirement plan liabilities adjustment
Prior-service credit						(2)						(2)						(2)						(b)
Actuarial losses						(28)						(29)						(27)						(b)
Total						(30)						(31)						(29)
Corebridge deconsolidation, net of tax						—						(7,214)						—						(c)
Total reclassifications for the year			$			(623)			$			(7,864)			$			(1,091)

(a)The following items are not reclassified out of AOCI and included in the Consolidated Statements of Income (Loss) and thus have been excluded from the table: (i) Change in fair value of market risk benefits attributable to changes in our own credit risk and (ii) Change in the discount rates used to measure traditional and limited-payment long-duration insurance contracts.

(b)These AOCI components are included in the computation of net periodic pension cost. For additional information, see Note 20.

(c)Represents adjustments related to the deconsolidation of Corebridge which is reflected in Income (loss) from discontinued operations, net of taxes. See the rollforward of Accumulated other comprehensive income (loss) above for further details.

152			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 17. Earnings Per Common Share (EPS)

17. Earnings Per Common Share (EPS)

Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding. The diluted EPS computation assumes the issuance of all potentially dilutive common shares outstanding using the treasury stock method or the if-converted method, as applicable, and excludes the effect of anti-dilutive shares.

The following table presents the computation of basic and diluted EPS:

Years Ended December 31,
(dollars in millions, except per common share data)																					2025						2024						2023
Numerator for EPS:
Income (loss) from continuing operations																					$	3,097					$	2,700					$	2,741
Less: Net income attributable to noncontrolling interests																					1						—						—
Less: Preferred stock dividends and preferred stock redemption premiums																					—						22						29
Income (loss) attributable to AIG common shareholders from continuing operations																					3,096						2,678						2,712
Income (loss) from discontinued operations, net of income tax expense																					—						(3,626)						1,137
Less: Net income attributable to noncontrolling interests																					—						478						235
Income (loss) from discontinued operations, net of noncontrolling interest																					—						(4,104)						902
Net income (loss) attributable to AIG common shareholders																					$	3,096					$	(1,426)					$	3,614
Denominator for EPS:
Weighted average common shares outstanding - basic																					565,078,072						651,448,307						719,506,291
Dilutive common shares																					5,271,916						5,834,853						5,726,777
Weighted average common shares outstanding - diluted(a)																					570,349,988						657,283,160						725,233,068
Income (loss) per common share attributable to AIG common shareholders:
Basic:
Income (loss) from continuing operations																					$	5.48					$	4.11					$	3.77
Income (loss) from discontinued operations																					$	—					$	(6.30)					$	1.25
Income (loss) attributable to AIG common shareholders																					$	5.48					$	(2.19)					$	5.02
Diluted:
Income (loss) from continuing operations																					$	5.43					$	4.07					$	3.74
Income (loss) from discontinued operations																					$	—					$	(6.24)					$	1.24
Income (loss) attributable to AIG common shareholders																					$	5.43					$	(2.17)					$	4.98

(a)Potential dilutive common shares are due to our share-based employee compensation plans and agreements. The number of potential common shares excluded from diluted shares outstanding was 132,504, 103,957 and 4,350,324 for the years ended December 31, 2025, 2024 and 2023, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive.

For information regarding our repurchases of AIG Common Stock, see Note 16.

AIG | 2025 Form 10-K			153

ITEM 8 | Notes to Consolidated Financial Statements | 18. Statutory Financial Data and Restrictions

18. Statutory Financial Data and Restrictions

The following table presents statutory net income (loss) and capital and surplus for our General Insurance companies in accordance with statutory accounting practices:

(in millions)						2025						2024						2023
Years Ended December 31,
Statutory net income (loss)(a)(b):
General Insurance companies:
Domestic			$			2,785			$			1,594			$			1,912
Foreign						1,627						1,741						1,867
Total General Insurance companies			$			4,412			$			3,335			$			3,779
At December 31,
Statutory capital and surplus**(a)(b)****:**
General Insurance companies:
Domestic			$			17,874			$			17,001
Foreign						10,790						12,299
Total General Insurance companies			$			28,664			$			29,300
Aggregate minimum required statutory capital and surplus:
General Insurance companies:
Domestic			$			3,880			$			3,763
Foreign						6,470						5,741
Total General Insurance companies			$			10,350			$			9,504

(a)Excludes discontinued operations and other divested businesses.

(b)The 2025 statutory net income and capital and surplus reflect our best estimate as of the date of AIG’s Form 10-K filing.

Our insurance subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by domestic and foreign insurance regulatory authorities. The principal differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP for domestic companies are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, investment impairments are determined in accordance with statutory accounting practices, assets and liabilities are presented net of reinsurance, policyholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted.

For domestic insurance subsidiaries, aggregate minimum required statutory capital and surplus is based on the greater of the Risk-Based Capital (RBC) level that would trigger regulatory action or minimum requirements per state insurance regulation. Capital and surplus requirements of our foreign subsidiaries differ from those prescribed in the U.S., and can vary significantly by jurisdiction. At both December 31, 2025 and 2024, all domestic and foreign insurance subsidiaries individually exceeded the minimum required statutory capital and surplus requirements and all domestic insurance subsidiaries individually exceeded RBC minimum required levels.

For foreign insurance companies, financial statements are prepared in accordance with local regulatory requirements. These accounting practices differ from U.S. GAAP primarily by different rules on deferral of policy acquisition costs, amortization of deferred acquisition costs, and establishing future policy benefit liabilities using different actuarial assumptions, as well as valuing for deferred taxes on a different basis.

SUBSIDIARY DIVIDEND RESTRICTIONS

Payments of dividends to us by our insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities. With respect to our domestic insurance subsidiaries, the payment of any dividend requires formal notice to the insurance department in which the particular insurance subsidiary is domiciled. For example, unless permitted by the Superintendent of Financial Services, property casualty companies domiciled in New York generally may not pay dividends to shareholders that, in any 12-month period, exceed the lesser of 10 percent of such company’s statutory policyholders’ surplus or 100 percent of its “adjusted net investment income,” for the previous year, as defined. Generally, less severe restrictions applicable to property casualty companies exist in most of the other states in which our insurance subsidiaries are domiciled. Under state insurance laws, an insurer may pay a dividend without prior approval of the insurance regulator when the amount of the dividend is below certain regulatory thresholds. Other foreign jurisdictions may restrict the ability of our foreign insurance subsidiaries to pay dividends. Various other regulatory restrictions also limit cash loans and advances to us by our subsidiaries.

154			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 18. Statutory Financial Data and Restrictions

The amount of dividends available to be paid in 2025 from our insurance subsidiaries without prior regulatory approval was $2.6 billion at December 31, 2025.

To our knowledge, no AIG insurance company is currently on any regulatory or similar “watch list” with regard to solvency.

PARENT COMPANY DIVIDEND RESTRICTIONS

At December 31, 2025, our ability to pay dividends is not subject to any significant contractual restrictions, but remains subject to regulatory restrictions.

For additional information about our ability to pay dividends to our shareholders, see Note 16.

19. Share-Based Compensation Plans

The following table presents our total share-based compensation expense:

Years Ended December 31,
(in millions)						2025						2024						2023
Share-based compensation expense - pre-tax(a)			$			207			$			211			$			199
Share-based compensation expense - after tax(b)						164						167						157

(a)As a result of accelerated vesting events, such as retirement eligibility in the year of grant and involuntary terminations, we recognized $34 million, $52 million and $58 million in 2025, 2024 and 2023, respectively, prior to the end of the specified vesting periods. It is our policy to reverse compensation expense for forfeited awards when they occur.

(b)We also recognized $11 million of tax benefit due to share settlements occurring in 2025.

EMPLOYEE PLANS

The Company sponsors several stock compensation programs under the AIG Long Term Incentive Plan (LTIP) (as amended) and its predecessor plan from which performance share units (PSUs), restricted stock units (RSUs), stock options and deferred stock units (DSUs) (collectively units) are issued. In addition, off-cycle grants are made from time to time during the year generally as sign-on awards to new hires or as a result of a change in employee status. The LTIP is governed by the AIG 2021 Omnibus Incentive Plan (2021 Plan), which was adopted at the annual shareholders’ meeting in May 2021, replacing the AIG 2013 Omnibus Incentive Plan (2013 Plan).

Our share-settled awards are settled with previously acquired shares held in AIG’s treasury.

AIG Omnibus Incentive Plan

The 2021 Plan provided for the grants of share-based awards to our employees and non-employee directors. The total number of shares granted under the 2021 Plan (the reserve) was the sum of 1) 8.1 million shares of AIG Common Stock, plus 2) the number of authorized shares that remained available for issuance under the 2013 Plan when the 2021 Plan became effective, plus 3) the number of shares of AIG Common Stock relating to outstanding awards under the 2013 Plan at the time the 2021 Plan became effective that subsequently were forfeited, expired, terminated or otherwise lapse or are settled in cash. Each share-based unit granted under the 2021 Plan reduces the number of shares available for future grants by one share. However, shares with respect to awards that are forfeited, expired or settled for cash are returned to the reserve. As of December 31, 2025, 20,233,609 shares are available for future grants under the 2021 plan.

AIG Long Term Incentive Plan

Long-Term Incentive (LTI) Awards

The LTIP provides for an annual LTI award to certain employees, including our senior executive officers and other highly compensated employees that may be comprised of a combination of one or more of the following units: PSUs, RSUs or stock options.

The number of PSUs issued on the grant date (the target) provides the opportunity for LTIP participants (usually senior management) to receive shares of AIG Common Stock based on AIG achieving specified performance goals at the end of a three-year performance period. These performance goals are pre-established by AIG’s Compensation and Management Resources Committee (CMRC) for each annual grant and may differ from year to year. The actual number of PSUs earned can vary from zero to 200 percent of the target for the 2025, 2024 and 2023 LTI awards, depending on AIG’s performance relative to a specified peer group and/or the outcome of pre-established financial goals, as applicable.

AIG | 2025 Form 10-K			155

ITEM 8 | Notes to Consolidated Financial Statements | 19. Share-Based Compensation Plans

RSUs and stock options are earned based solely on continued service by the participant. In addition, PSUs and RSUs accrue dividend equivalent rights (DERs) during the specified service period as AIG’s dividends are declared. These DERs are settled in cash only if the vesting conditions of the underlying units are met.

Vesting for the PSUs occurs on January 1 of the year immediately following the end of the three-year performance and service period, while vesting for RSUs and stock options occur in three equal installments on the first, second and third anniversary of the grant date. Recipients must be employed at each vesting date to be entitled to share delivery, except upon the occurrence of an accelerated vesting event, such as an involuntary termination without cause, disability, retirement eligibility or death during the vesting period. For involuntarily terminated employees hired after April 1, 2022 unvested RSUs and options are forfeited on the termination date, while PSUs are pro-rated based on the number of completed years in the performance period.

Unit Valuation

The fair value of time-vesting RSUs as well as PSUs that are earned based on certain company-specific metrics was based on the closing price of AIG Common Stock on the grant date; while the fair value of PSUs that are earned based on AIG’s relative total shareholder return (TSR) was determined on the grant date using a Monte Carlo simulation.

The following table presents the assumptions used to estimate the fair value of PSUs that vest based on AIG’s TSR:

			2025			2024			2023
Expected dividend yield(a)			—		%	—		%	—		%
Expected volatility(b)			25.73		%	28.72		%	37.98		%
Risk-free interest rate(c)			4.28		%	4.36		%	4.42		%

(a)The award agreement provides that TSR for AIG and each member of the Peer Group will be calculated assuming dividends distributed are reinvested on the ex‑dividend date.

(b)We used the historical volatility over the most recent 2.86-year period for AIG and the members of the Peer Group, commensurate with the remaining Performance Period as of the valuation date.

(c)We converted the semi-annual zero-coupon U.S. Treasury rates as of the valuation date to continuously compounded rates. We then chose the continuously compounded risk-free rate that is commensurate with the length of the remaining performance period as of the valuation date and interpolated between the yields of the two-year and the three-year continuously compounded rates to determine the yield.

The following table summarizes outstanding share-settled LTI awards**(a)****:**

			Number of Units															Weighted Average Grant-Date Fair Value
Year Ended December 31, 2025**(b)**			2025 LTI			2024 LTI			2023 LTI			2022 LTI						2025 LTI						2024 LTI						2023 LTI						2022 LTI
Unvested, beginning of year			—			1,365,389			970,351			309,042						$	—					$	68.34					$	60.14					$	60.94
Granted			1,790,486			—			—			—						76.94						—						—						—
Vested(c)			(421,555)			(440,791)			(385,705)			(305,019)						76.63						68.21						61.85						60.93
Forfeited			(87,348)			(92,154)			(55,518)			(4,023)						75.70						68.23						73.93						61.61
Unvested, end of year**(d)**			1,281,583			832,444			529,128			—						$	77.13					$	68.42					$	60.35					$	—

(a)Excludes stock options, other RSUs and DSUs, which are discussed under Stock Options, Other RSU Grants and Non-Employee Plan, respectively.

(b)PSUs represent target amount granted and does not reflect potential increases or decreases that could result from the final outcome of the performance goals for the respective awards, which is determined by the CMRC in the quarter after the applicable performance period ends.

(c)Also reflects units that vest as a result of an accelerated vesting event that occurred prior to the specified vesting date but for which share delivery has not yet occurred.

(d)At December 31, 2025, the total unrecognized compensation cost for outstanding RSUs and PSUs was $100 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 0.95 year and 2.25 years.

Stock Options

Time-vesting stock options were issued as part of the 2025, 2024 and 2023 LTI awards. Option awards are generally granted with an exercise price equal to the market price of the company’s stock on the grant date and are exercisable up to 10 years from the date of grant, or 3 years from the date of an involuntary termination or the option's expiration date, if earlier. The fair value of LTI options is measured on the grant date using the Black-Scholes valuation model.

156			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 19. Share-Based Compensation Plans

The following weighted-average assumptions were used for stock options granted:

			2025						2024						2023
Expected annual dividend yield(a)			2.12			%			2.11			%			2.14			%
Expected volatility(b)			25.05			%			25.27			%			25.17			%
Risk-free interest rate(c)			4.39			%			4.21			%			4.06			%
Expected term(d)			6.00			years			6.00			years			6.00			years

(a)The dividend yield is the last dividend from Bloomberg times 4 divided by stock price based on Bloomberg Professional service as of the valuation date.

(b)The expected volatility is based on the implied volatility of 24 months stock option estimated by the Bloomberg Professional service as of the valuation date.

(c)We converted the semi-annual zero-coupon U.S. Treasury rates as of the valuation date to continuously compounded rates. We then chose the continuously compounded risk-free rate that is commensurate with the length of the remaining performance period as of the valuation date and interpolated between the yields of the two-year and the three-year continuously compounded rates to determine the yield.

(d)The contractual term is 10 years from the date of grant.

The following table provides a rollforward of stock option activity:

As of or for the Year Ended December 31, 2025			Units						Weighted Average Exercise Price						Weighted Average Remaining Contractual Life						Aggregate Intrinsic Values (in millions)
Outstanding, beginning of year			9,017,588						$	50.40					6.61
Granted			989,198						75.46
Exercised			(3,238,914)						48.00
Forfeited or expired			(71,970)						66.84
Outstanding, end of year			6,695,902						$	55.08					6.69						$	204
Exercisable, end of year			5,032,319						$	49.80					5.67						$	180

The weighted average grant-date fair value of stock options granted during 2025, 2024 and 2023 was $13.90, $12.51 and $11.43, respectively. As of December 31, 2025, we recognized $19 million of expense, while $13 million was unrecognized and is expected to be amortized up to 2.25 years. We received $155 million in cash from the exercise of stock options during 2025.

Other RSU Grants

The Company may issue time-vesting RSUs for various reasons including, as a sign-on bonus, retention grant or replacement award in an acquisition. Vesting for these awards ranges from 1 to 5 years and is contingent on continuous service.

The following table summarizes outstanding share-settled Other RSU grants.

			Number of Units												Weighted Average Grant-Date Fair Value
Years Ended December 31,			2025			2024			2023									2025						2024						2023
Unvested, beginning of year			1,318,280			1,361,714			1,488,248						$			61.62			$			57.79			$			54.77
Granted			136,724			241,536			208,641									80.88						73.78						62.42
Vested			(221,339)			(264,588)			(252,635)									55.99						52.82						49.42
Forfeited			(19,241)			(20,382)			(82,540)									70.12						64.03						40.70
Unvested, end of year			1,214,424			1,318,280			1,361,714						$			64.68			$			61.62			$			57.79

We recognized $24 million of expense related to these RSU grants in 2025. Total unrecognized compensation cost related to these grants was $27 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 0.80 years and 4.25 years at December 31, 2025.

NON-EMPLOYEE PLAN

Our non-employee directors, who serve on our Board of Directors, receive share-settled compensation in the form of fully vested DSUs with delivery deferred until retirement from the Board of Directors. DSUs granted in 2025, 2024 and 2023 accrue dividend equivalents in the form of additional DSUs equal to the amount of any regular quarterly dividend that would have been paid by AIG if the shares of AIG Common Stock underlying the DSUs had been outstanding. In 2025, 2024 and 2023, we granted to non-employee directors 34,687, 33,940 and 47,344 DSUs, respectively, and recognized expense of $2.8 million, $2.6 million and $2.6 million, respectively.

AIG | 2025 Form 10-K			157

ITEM 8 | Notes to Consolidated Financial Statements | 20. Employee Benefits

20. Employee Benefits

DEFINED CONTRIBUTION PLANS

AIG Parent sponsors several defined contribution plans for U.S. employees that provide for pre-tax salary reduction contributions by employees. The most significant plan is the AIG Incentive Savings Plan (ISP), for which the matching contribution is 100 percent of the first 6% of a participant’s contributions, subject to the IRS-imposed limitations. Participants in the AIG ISP receive an additional fully vested, non-elective, non-discretionary contribution equal to 3% of the participant’s eligible compensation for the plan year, paid each pay period regardless of whether the participant currently contributes to the plan, and subject to the IRS-imposed limitations. Our pre-tax expenses associated with these plans were $72 million,$87 million and $95 million in 2025, 2024 and 2023, respectively.

DEFINED BENEFIT PLANS

We offer various defined benefit plans to eligible employees. Effective January 1, 2016, the U.S. defined benefit plans were frozen. Consequently, these plans are closed to new participants and current participants no longer earn benefits.

Postretirement Plans

We provide certain medical and life insurance benefits to retired eligible employees (postretirement). Medical benefits are contributory, while the life insurance benefits, which are closed to new employees, are generally non-contributory. As of December 31, 2025 and 2024, the total unfunded benefit obligations associated with these plans were $106 million and $117 million, respectively, and the total net benefit expense for both periods was under $1 million.

Pension Plans

The U.S. AIG Retirement Plan (the qualified plan) is a noncontributory defined benefit plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). In 2012, the qualified plan was converted to a cash balance formula comprised of pay credits based on 6% of a plan participant’s annual compensation (subject to IRS limitations) and annual interest credits. Although benefits are frozen, these interest credits continue to accrue on the cash balance accounts of active participants, who also accrue years of service for purposes of early retirement eligibility and subsidies. Employees can take their vested benefits as a lump sum or an annuity option when they leave AIG or are terminated from the plan.

Employees satisfying certain age and service requirements (i.e., grandfathered employees) remain covered under the average pay formula that was in effect prior to the conversion. The final average pay formula is based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Grandfathered employees will receive the higher of the benefit under the cash balance formula or the final average pay formula at retirement.

In the U.S. we also sponsor non-qualified unfunded defined benefit plans, such as the AIG Non-Qualified Retirement Income Plan (AIG NQRIP) for certain employees, including key executives, designed to supplement pension benefits provided by the qualified plan. The AIG NQRIP provides a benefit equal to the reduction in benefits under the qualified plan as a result of federal tax limitations on compensation and benefits payable.

Non-U.S. defined benefit plans generally are either based on the employee’s years of credited service and compensation in the years preceding retirement or on points accumulated based on the employee’s job grade and other factors during each year of service.

The following table presents the funded status of the pension plans reconciled to the amount reported in the Consolidated Balance Sheets.

As of or for the Years Ended December 31,			U.S. Plans(a)															Non-U.S. Plans(a)
(in millions)						2025						2024									2025						2024
Change in projected benefit obligation:
Benefit obligation, beginning of year			$			2,962			$			3,301						$			747			$			804
Service cost						4						4									14						14
Interest cost						149						154									20						20
Actuarial (gain) loss(b)						40						(200)									(34)						14
Benefits paid:
AIG assets						(16)						(17)									(8)						(9)
Plan assets						(247)						(280)									(32)						(28)
Plan amendment						—						—									1						1
Settlements						—						—									(7)						(9)
Foreign exchange effect						—						—									34						(60)

158			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 20. Employee Benefits

As of or for the Years Ended December 31,			U.S. Plans(a)															Non-U.S. Plans(a)
(in millions)						2025						2024									2025						2024
Other						(1)						—									1						—
Projected benefit obligation, end of year			$			2,891			$			2,962						$			736			$			747
Change in plan assets:
Fair value of plan assets, beginning of year			$			2,976			$			3,228						$			704			$			734
Actual return on plan assets, net of expenses						236						28									16						35
AIG contributions						16						17									38						42
Benefits paid:
AIG assets						(16)						(17)									(8)						(9)
Plan assets						(247)						(280)									(32)						(28)
Settlements						—						—									(7)						(9)
Foreign exchange effect						—						—									24						(61)
Fair value of plan assets, end of year			$			2,965			$			2,976						$			735			$			704
Funded status, end of year			$			74			$			14						$			(1)			$			(43)
Amounts recognized in the balance sheet:
Assets			$			242			$			184						$			157			$			122
Liabilities						(168)						(170)									(158)						(165)
Total amounts recognized			$			74			$			14						$			(1)			$			(43)
Pre-tax amounts recognized in AOCI:
Net gain (loss)			$			(1,025)			$			(1,082)						$			(50)			$			(72)
Prior service (cost) credit						—						—									(16)						(18)
Total amounts recognized			$			(1,025)			$			(1,082)						$			(66)			$			(90)

(a)Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $168 million and $170 million for the U.S. at December 31, 2025 and 2024, respectively, and $138 million and $139 million for the non-U.S. at December 31, 2025 and 2024, respectively.

(b)The primary reason for the significant gain in 2024 is due to a change in the discount rate for the U.S. AIG Retirement Plan.

The following table presents the accumulated benefit obligations for U.S. and non-U.S. defined benefit pension plans:

At December 31,
(in millions)						2025						2024
U.S. pension benefit plans			$			2,891			$			2,962
Non-U.S. pension benefit plans			$			723			$			735

Defined benefit pension plan obligations in which the projected benefit obligation (PBO) was in excess of the related plan assets and the accumulated benefit obligation (ABO) was in excess of the related plan assets were as follows:

At December 31,						PBO Exceeds Fair Value of Plan Assets																											ABO Exceeds Fair Value of Plan Assets
						U.S. Plans															Non-U.S. Plans															U.S. Plans															Non-U.S. Plans
(in millions)						2025						2024									2025						2024									2025						2024									2025						2024
Projected benefit obligation						$	168					$	170								$	284					$	287								$	—					$	—								$	—					$	—
Accumulated benefit obligation						—						—									—						—									168						170									243						245
Fair value of plan assets						—						—									97						91									—						—									97						91

The following table presents the components of net periodic benefit cost with respect to our pension plan benefits:

Years Ended December 31,			U.S. Plans																					Non-U.S. Plans
(in millions)						2025						2024						2023									2025						2024						2023
Components of net periodic benefit cost:
Service cost*			$			4			$			4			$			5						$			14			$			14			$			16
Interest cost						149						154						168									20						20						20
Expected return on assets						(171)						(201)						(193)									(24)						(19)						(21)
Amortization of prior service cost (credit)						—						—						—									3						2						3
Amortization of net (gain) loss						33						33						33									2						2						2
Net periodic benefit cost (credit)			$			15			$			(10)			$			13						$			15			$			19			$			20
Settlement loss						—						—						71									(1)						1						—
Net benefit cost (credit)			$			15			$			(10)			$			84						$			14			$			20			$			20
Total recognized in AOCI			$			57			$			60			$			137						$			23			$			11			$			6
Total recognized in net periodic benefit cost and other comprehensive income (loss)			$			42			$			70			$			53						$			9			$			(9)			$			(14)

*Reflects administrative fees for the U.S. pension plans.

AIG | 2025 Form 10-K			159

ITEM 8 | Notes to Consolidated Financial Statements | 20. Employee Benefits

Interest cost for pension benefits for our U.S. plans and largest non-U.S. plans is measured using the spot rate approach, which applies specific spot rates along the yield curve to a plan’s corresponding discounted cash flows that comprise the obligation. This method provides a more precise measurement of interest cost by aligning the timing of the plans’ discounted cash flows to the corresponding spot rates on the yield curve. For certain non-U.S. plans, interest cost is measured utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligations.

A 100 basis point increase in the expected long-term rate of return would decrease the 2026 net pension expense by approximately $35 million with all other items remaining the same. A 100 basis point increase in the discount rate would increase the 2026 pension net expense by approximately $1 million. Conversely, a 100 basis point decrease in the discount rate would decrease the 2026 pension expense by approximately $4 million while a 100 basis point decrease in the expected long-term rate of return would increase the 2026 pension expense by approximately $35 million, with all other items remaining the same.

ASSUMPTIONS

The following table summarizes the weighted average assumptions used to determine the pension benefit obligations:

			U.S. Plans						Non-U.S. Plans(a)
December 31, 2025
Discount rate			5.40		%				3.58		%
Interest crediting rate			4.64		%				1.72		%	(b)
Rate of compensation increase			N/A			(c)			2.39		%
December 31, 2024
Discount rate			5.57		%				2.87		%
Interest crediting rate			4.37		%				1.36		%	(b)
Rate of compensation increase			N/A			(c)			2.43		%

(a)The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits.

(b)Represents the weighted average interest crediting rate of non-U.S. cash balance plans primarily in Japan and Switzerland.

(c)Compensation increases are no longer applicable as the plans are frozen effective January 1, 2016.

The following table presents the weighted average assumptions used to determine the net periodic benefit costs:

			U.S. Plans						Non-U.S. Plans(a)
For the Year Ended December 31, 2025
Discount rate			5.57		%				2.87		%
Interest crediting rate			4.37		%				1.36		%	(b)
Rate of compensation increase			N/A						2.43		%
Expected return on assets			6.00		%				3.25		%
For the Year Ended December 31, 2024
Discount rate			4.98		%				2.85		%
Interest crediting rate			4.94		%				1.40		%	(b)
Rate of compensation increase			N/A						2.42		%
Expected return on assets			6.50		%				2.77		%
For the Year Ended December 31, 2023
Discount rate			5.22		%				2.51		%
Interest crediting rate			4.02		%				1.07		%	(b)
Rate of compensation increase			N/A						2.38		%
Expected return on assets			6.25		%				2.67		%

(a)The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits.

(b)Represents the weighted average interest crediting rate of non-U.S. cash balance plans primarily in Japan and Switzerland.

Discount Rate Methodology

The projected benefit cash flows under the U.S. AIG Retirement Plan were discounted using the spot rates derived from the Mercer U.S. Pension Discount Yield Curve (Mercer Yield Curve) at December 31, 2025 and 2024, which resulted in a single discount rate that would produce the same liability at the respective measurement dates. The discount rates were 5.40 percent at December 31, 2025 and 5.57 percent at December 31, 2024. The methodology was consistently applied for the respective years in determining the discount rates for the other U.S. pension plans.

In general, the discount rates for the non-U.S. plans were developed using a similar methodology to the U.S. AIG Retirement Plan, by using country-specific Mercer Yield Curves.

160			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 20. Employee Benefits

The projected benefit obligation for AIG’s Japan pension plans represents approximately 49 percent and 50 percent of the total projected benefit obligations for our non-U.S. pension plans at December 31, 2025 and 2024, respectively. The weighted average discount rate of 2.72 percent and 1.81 percent at December 31, 2025 and 2024, respectively, was selected by reference to the Mercer Yield Curve for Japan.

Plan Assets

The investment strategy with respect to assets relating to our U.S. and non-U.S. pension plans is designed to achieve investment returns that will provide for the benefit obligations of the plans over the long term, limit the risk of short-term funding shortfalls and maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including, but not limited to, volatility relative to the benefit obligations, liquidity, and concentration, and incorporates the risk/return profile applicable to each asset class.

There were no shares of AIG Common Stock included in the U.S. and non-U.S. pension plans assets at December 31, 2025 or 2024.

U.S. Pension Plan

The assets of the qualified plan are monitored by the AIG U.S. Investment Committee and actively managed by the investment managers, which involves allocating the plan’s assets among approved asset classes within ranges as permitted by the strategic allocation. The long-term strategic asset allocation historically has been reviewed and revised approximately every three years. The investment strategy is focused on de-risking the qualified plan via regular monitoring through liability driven investing and the glide path approach, where the glide path defines the target allocation for the “Return-Seeking” portion of the portfolio (i.e., growth assets) based on the funded ratio and level of interest rates. Under this approach, the allocation to growth assets is reduced and the allocation to liability-hedging assets is increased as the plan’s funded ratio increases in accordance with the defined glide path.

The following table presents the asset allocation percentage by major asset class for the U.S. qualified plan and the target allocation for 2026 based on the plan’s funded status at December 31, 2025:

At December 31,			Target 2026						Actual 2025						Actual 2024
Asset class:
Equity securities			8		%				13		%				13		%
Fixed maturity securities			80						74						72
Other investments			12						13						15
Total			100		%				100		%				100		%

The expected weighted average long-term rate of return for the plan was 6.00 percent and 6.50 percent for 2025 and 2024, respectively. The expected weighted average rate of return is an aggregation of expected returns within each asset class category, weighted for the investment mix of the assets. The combination of the expected asset return and any contributions made by us are expected to maintain the plan’s ability to meet all required benefit obligations. The expected asset return for each asset class was developed based on an approach that considers key fundamental drivers of the asset class returns in addition to historical returns, current market conditions, asset volatility and the expectations for future market returns.

Non-U.S. Pension Plans

The assets of the non-U.S. pension plans are held in various trusts in multiple countries and are invested primarily in equities and fixed maturity securities to maximize the long-term return on assets for a given level of risk.

The following table presents the asset allocation percentage by major asset class for non-U.S. pension plans and the target allocation:

At December 31,			Target 2026						Actual 2025						Actual 2024
Asset class:
Equity securities			20		%				19		%				20		%
Fixed maturity securities			59						47						47
Other investments			17						21						24
Cash and cash equivalents			4						13						9
Total			100		%				100		%				100		%

The assets of AIG’s Japan pension plans represent approximately 66 percent and 66 percent of total non-U.S. pension plan assets at December 31, 2025 and 2024, respectively. The expected long-term rate of return was 2.79 percent and 1.85 percent for 2025 and 2024, respectively, and is evaluated by the Japanese Pension Investment Committee on a quarterly and annual basis along with various investment managers and is revised to achieve the optimal allocation to meet targeted funding levels if necessary. In addition, the funding policy is revised in accordance with local regulation every five years.

AIG | 2025 Form 10-K			161

ITEM 8 | Notes to Consolidated Financial Statements | 20. Employee Benefits

The expected weighted average long-term rate of return for all our non-U.S. pension plans was 3.25 percent and 2.77 percent for the years ended December 31, 2025 and 2024, respectively. It is an aggregation of expected returns within each asset class that was generally developed based on the building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns.

ASSETS MEASURED AT FAIR VALUE

The following table presents information about our plan assets and indicates the level of the fair value measurement based on the observability of the inputs used. The inputs and methodology used in determining the fair value of these assets are consistent with those used to measure our assets as discussed in Note 5 to the Consolidated Financial Statements.

			U.S. Plans																											Non-U.S. Plans
(in millions)						Level 1						Level 2						Level 3						Total									Level 1						Level 2						Level 3						Total
December 31, 2025
Assets:
Cash and cash equivalents			$			57			$			—			$			—			$			57						$			97			$			—			$			—			$			97
Equity securities:
U.S.(a)						385						—						—						385									—						—						—						—
International(b)						3						—						—						3									83						57						—						140
Fixed maturity securities:
U.S. investment grade(c)						—						2,018						50						2,068									—						—						—						—
International investment grade(c)						—						79						—						79									—						153						—						153
U.S. and international high yield(d)						—						(28)						—						(28)									—						192						—						192
Mortgage and other asset-backed securities						—						63						—						63									—						—						—						—
Other investment types**(e)****:**
Futures						—						—						(3)						(3)									—						—						—						—
Direct private equity(f)						—						—						12						12									—						—						—						—
Insurance contracts						—						6						—						6									—						—						143						143
Mutual funds(f)						—						—						—						—									—						10						—						10
Total			$			445			$			2,138			$			59			$			2,642						$			180			$			412			$			143			$			735
December 31, 2024
Assets:
Cash and cash equivalents			$			52			$			—			$			—			$			52						$			66			$			—			$			—			$			66
Equity securities:
U.S.(a)						163						—						—						163									—						—						—						—
International(b)						4						—						—						4									82						55						—						137
Fixed maturity securities:
U.S. investment grade(c)						22						1,996						5						2,023									—						—						—						—
International investment grade(c)						—						101						—						101									—						146						—						146
U.S. and international high yield(d)						—						(40)						—						(40)									—						185						—						185
Mortgage and other asset-backed securities						—						54						1						55									—						—						—						—
Other fixed maturity securities						—						9						—						9									—						—						—						—
Other investment types**(e)****:**
Futures						(7)						—						—						(7)									—						—						—						—
Insurance contracts						—						8						—						8									—						—						161						161
Mutual funds(f)						—						—						—						—									—						9						—						9
Total			$			234			$			2,128			$			6			$			2,368						$			148			$			395			$			161			$			704

(a)Includes passive and active U.S. equity strategies.

(b)Includes passive and active international equity strategies.

(c)Includes investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds.

(d)Consists primarily of investments in securities or debt obligations that have a rating below investment grade.

(e)Excludes investments that are measured at fair value using the NAV per share (or its equivalent), which totaled $323 million and $608 million at December 31, 2025 and 2024, respectively.

(f)Comprised of mutual fund investing in variety of equity, derivatives, and bonds.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we had no significant concentrations of risks at December 31, 2025.

162			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 20. Employee Benefits

Changes in Level 3 Fair Value Measurements

The following table presents changes in our U.S. and non-U.S. Level 3 plan assets measured at fair value:

December 31, 2025			Balance Beginning of year			Net Realized and Unrealized Gains (Losses)			Purchases			Sales									Transfers In			Transfers Out			Balance at End of Year			Changes in Unrealized Gains (Losses) on Instruments Held at End of Year
(in millions)
U.S. Plan Assets:
Fixed maturity securities
U.S. investment grade			$	5		$	3		$	94		$	(178)								$	130		$	(4)		$	50		$	27
Mortgage and other asset backed securities			1			—			—			—									—			(1)			—			—
Futures			—			—			—			(3)									—			—			(3)			—
Direct private equity			—			(1)			62			(58)									9			—			12			11
Total			$	6		$	2		$	156		$	(239)								$	139		$	(5)		$	59		$	38
Non-U.S. Plan Assets:
Insurance contracts			$	161		$	(14)		$	(4)		$	—								$	—		$	—		$	143		$	—
Total			$	161		$	(14)		$	(4)		$	—								$	—		$	—		$	143		$	—
December 31, 2024
U.S. Plan Assets:
Fixed maturity securities
U.S. investment grade			$	10		$	(1)		$	—		$	(3)								$	—		$	(1)		$	5		$	—
Mortgage and other asset backed securities			1			—			—			—									—			—			1			—
Total			$	11		$	(1)		$	—		$	(3)								$	—		$	(1)		$	6		$	—
Non-U.S. Plan Assets:
Insurance contracts			$	138		$	21		$	2		$	—								$	—		$	—		$	161		$	—
Total			$	138		$	21		$	2		$	—								$	—		$	—		$	161		$	—

EXPECTED CASH FLOWS

Funding for the qualified plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. There are no minimum required cash contributions in 2025 for the U.S. AIG Retirement Plan. The non-qualified and postretirement plans’ benefit payments are deductible when paid to participants.

Our combined pension contribution in 2026 is expected to be approximately $54 million for our U.S. and non-U.S. pension plans. This estimate is subject to change, since contribution decisions are affected by various factors including our liquidity, market performance and management’s discretion.

The expected future benefit payments, net of participants’ contributions, with respect to the defined benefit pension plans are as follows:

(in millions)			U.S. Plans						Non-U.S. Plans
2026			$	253					$	41
2027			259						41
2028			255						46
2029			257						47
2030			245						49
2031-2035			1,100						255

AIG | 2025 Form 10-K			163

ITEM 8 | Notes to Consolidated Financial Statements | 21. Income Taxes

21. Income Taxes

U.S. TAX LAW CHANGES

On July 4, 2025, new U.S. tax legislation was signed into law (known as the "One Big Beautiful Bill Act" or "OBBB Act") which, among other provisions, makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025. The OBBB Act does not have a material impact on our results of operations.

BASIS OF PRESENTATION

We file a consolidated U.S. federal income tax return with our eligible U.S. subsidiaries. Income earned by subsidiaries operating outside the U.S. is taxed, and income tax expense is recorded, based on applicable U.S. and foreign laws.

We consider our foreign earnings with respect to certain operations in Canada, South Africa, Japan, Latin America, Bermuda as well as the European, Asia Pacific and Middle East regions to be indefinitely reinvested. These earnings relate to ongoing operations and have been reinvested in active business operations. A deferred tax liability has not been recorded for those foreign subsidiaries whose earnings are considered to be indefinitely reinvested. If recorded, such deferred tax liability would not be material to our consolidated financial condition. Deferred taxes, if necessary, have been provided on earnings of non-U.S. affiliates whose earnings are not indefinitely reinvested.

EFFECTIVE TAX RATE

The following table presents income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred:

Years Ended December 31,
(in millions)						2025						2024						2023
U.S.			$			1,503			$			1,818			$			900
Foreign						2,376						2,052						1,967
Total			$			3,879			$			3,870			$			2,867

The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations:

Years Ended December 31,
(in millions)						2025						2024						2023
Income tax expense (benefit):
U.S. Federal:
Current			$			253			$			283			$			(246)
Deferred						(221)						416						(110)
U.S. State & Local:*
Current						17
Deferred						(12)
Foreign:
Current						635						374						422
Deferred						110						97						60
Total			$			782			$			1,170			$			126

*The income tax expense (benefit) related to U.S. state and local tax jurisdictions are reflected in the U.S. Federal income tax expense (benefit) for years 2024 and 2023 based on the originally as-filed basis prior to the adoption of the accounting standard.

164			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 21. Income Taxes

Our actual income tax expense (benefit) from continuing operations differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following:

Year Ended December 31,			2025
(dollars in millions)			Pre-Tax Income (Loss)			Tax Expense (Benefit)			Percent of Pre-Tax Income (Loss)
U.S. federal income tax at statutory rate			$	3,879		$	815		21.0		%
Adjustments:
State and local income tax, net of federal income tax effect						14			0.4
Foreign tax effects:
United Kingdom:
Effect of rate different than statutory						43			1.1
Other						46			1.2
Netherlands:
Effect of rate different than statutory						41			1.1
Other						(1)			—
Other jurisdictions						116			3.0
Effect of cross-border tax laws, net of related tax credits:
U.S. income taxes on non-U.S. insurance companies(a)						(59)			(1.5)
Other						28			0.7
Tax credits						(20)			(0.5)
Changes in valuation allowances						(300)			(7.7)
Nontaxable or nondeductible items						20			0.5
Changes in unrecognized tax benefits - Global						17			0.4
Other						22			0.5
Consolidated total amounts			$	3,879		$	782		20.2		%

(a)This relates to certain foreign insurance companies elected to be treated as a U.S. corporation under the U.S. federal tax law provisions.

The effective tax rate disclosures for the years ended 2024 and 2023 remain on the originally as-filed basis prior to the adoption of the improvements to income tax disclosures standard.

Years Ended December 31,									2024												2023
(dollars in millions)															Pre-Tax Income (Loss)			Tax Expense (Benefit)			Percent of Pre-Tax Income (Loss)						Pre-Tax Income (Loss)			Tax Expense (Benefit)			Percent of Pre-Tax Income (Loss)
U.S. federal income tax at statutory rate															$	3,870		$	813		21.0		%				$	2,867		$	602		21.0		%
Adjustments:
Tax exempt interest																		(8)			(0.2)									(14)			(0.5)
Uncertain tax positions(a)																		17			0.4									169			5.9
Dispositions of subsidiaries(b)																		(1)			—									(143)			(5.0)
Non-deductible transfer pricing charges																		13			0.3									16			0.6
Effect of foreign operations(c)																		110			2.8									176			6.1
Share-based compensation payments excess tax effect																		(16)			(0.4)									(21)			(0.7)
State and local income taxes																		26			0.7									23			0.8
Developments related to prior tax years under IRS review(a)																		240			6.2									(467)			(16.3)
Other(d)																		9			0.3									150			5.2
Valuation allowance(e)																		(33)			(0.9)									(365)			(12.7)
Consolidated total amounts															$	3,870		$	1,170		30.2		%				$	2,867		$	126		4.4		%

(a)2024 includes an update related to the estimated impact of potential resolution for prior tax years under IRS Appeals review. Refer to the Tax Examinations section below for further discussion on developments related to prior tax years under IRS review. For 2023, refer to the Accounting for Uncertainty in Income Taxes section below for further discussion on tax audit resolution activity. 2024 and 2023 uncertain tax positions include changes in unrecognized tax benefits in U.S. and certain foreign jurisdictions.

(b)This primarily includes tax implications of the sales of Validus Re for year 2023.

(c)Effect of foreign operations is primarily related to income and losses in our foreign operations taxed at statutory tax rates different than 21 percent, and foreign income subject to U.S. taxation.

(d)Primarily includes tax charges associated with tax adjustments related to prior year U.S. and foreign returns.

(e)2024 and 2023 amounts reflect changes in valuation allowances in U.S. and certain foreign jurisdictions. Primarily due to 2023 reduction in valuation allowance related to AIG’s U.S. federal consolidated income tax group tax attribute carryforwards.

AIG | 2025 Form 10-K			165

ITEM 8 | Notes to Consolidated Financial Statements | 21. Income Taxes

DEFERRED TAX ASSET

The following table presents the components of the net deferred tax assets (liabilities):

December 31,
(in millions)						2025						2024
Deferred tax assets:
Losses and tax credit carryforwards			$			4,155			$			4,636
Basis differences on investments						336						30
Accruals not currently deductible, and other						276						150
Investments in foreign subsidiaries						29						19
Loss reserve discount						440						443
Loan loss and other reserves						43						37
Unearned premium reserve reduction						—						46
Fixed assets and intangible assets						271						293
Unrealized losses related to available for sale debt securities						153						618
Employee benefits						163						192
Other						10						39
Total deferred tax assets						5,876						6,503
Deferred tax liabilities:
Deferred policy acquisition costs						(139)						(278)
Life policy reserves						(43)						(45)
Unearned premium reserve reduction						(161)						—
Total deferred tax liabilities						(343)						(323)
Net deferred tax assets before valuation allowance						5,533						6,180
Valuation allowance						(1,051)						(1,650)
Net deferred tax assets			$			4,482			$			4,530

The following table presents AIG's U.S. consolidated federal income tax group tax losses and credits carryforwards.

December 31, 2025						Tax									Carryforward Period Ending Tax Year(b)												Unlimited Carryforward Period and Carryforward Periods(b)
(in millions)			Gross			Effected									2028			2029			2030			2031						2032 - After
Net operating loss carryforwards			$	15,610		$	3,278								$	1,300		$	178		$	—		$	930					$	870
Other carryforwards						—									—			—			—			—						—
Total AIG U.S. consolidated federal income tax group tax losses and credits carryforwards on a U.S. GAAP basis(a)						$	3,278								$	1,300		$	178		$	—		$	930					$	870

(a)Financial reporting basis reflects the impact of unrecognized tax benefits for tax years in which tax attributes can be realized through carryback upon settlement.

(b)Carryforward periods are based on U.S. tax laws governing utilization of tax attributes. Expiration periods are based on the year the carryforward was generated.

ASSESSMENT OF DEFERRED TAX ASSET VALUATION ALLOWANCE

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. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed.

During the three months ended December 31, 2025, taxable income projections were updated to reflect the latest projections of income for our insurance and non-insurance companies and projections of taxable income generated from prudent and feasible tax planning strategies. In order to demonstrate the predictability and sufficiency of future taxable income necessary to support the realizability of the net operating losses carryforwards, we have considered forecasts of future income for each of our businesses, including assumptions about future macroeconomic and AIG-specific conditions and events, and any impact these conditions and events may have on our prudent and feasible tax planning strategies. We also subjected the forecasts to a variety of stresses of key assumptions and evaluated the effect on tax attribute utilization.

After factoring in multiple data points and assessing the relative weight of all positive and negative evidence, we concluded that the cumulative positive evidence outweighs the negative evidence regarding the likelihood that our U.S. federal consolidated income tax group tax attribute carryforwards will be realized and that the beginning of year valuation allowance should be released. Accordingly, during the fourth quarter of 2025, we recorded valuation allowance release of $300 million related to our U.S. federal consolidated tax attribute carryforwards.

166			AIG | 2025 Form 10-K

ITEM 8 | Notes to Consolidated Financial Statements | 21. Income Taxes

Estimates of future taxable income, including income generated from prudent and feasible actions and tax planning strategies and impact of settlements with taxing authorities, could change in the near term, perhaps materially, which may require us to consider any potential impact to our assessment of the recoverability of the deferred tax asset.

For the year ended December 31, 2025, recent changes in market conditions, including changes in interest rates, impacted the unrealized tax gains and losses in the available for sale securities portfolios of our general insurance and non-insurance companies, resulting in a decrease to deferred tax assets related to net unrealized tax capital losses. The deferred tax assets relate to the unrealized tax capital losses for which the carryforward period has not yet begun. As of December 31, 2025, based on all available evidence, we concluded that a valuation allowance of $200 million is necessary on deferred tax assets related to unrealized tax capital losses that are not more-likely-than-not to be realized. For the year ended December 31, 2025, we recorded a decrease in valuation allowance of $309 million associated with the unrealized tax capital losses in AIG's available for sale securities portfolio. The valuation allowance decrease was allocated to Other comprehensive income.

For the year ended December 31, 2025, we recognized a net $13 million increase in deferred tax asset valuation allowance associated with certain foreign jurisdictions.

The following table presents the net deferred tax assets (liabilities) at December 31, 2025 and 2024 on a U.S. GAAP basis:

December 31,
(in millions)						2025						2024
Net U.S. deferred tax assets			$			4,835			$			4,922
Net deferred tax assets (liabilities) in AOCI						109						421
Valuation allowance						(194)						(798)
Subtotal						4,750						4,545
Net foreign, state and local deferred tax assets						1,203						1,263
Valuation allowance						(857)						(852)
Subtotal						346						411
Subtotal - Net U.S., foreign, state and local deferred tax assets						5,096						4,956
Net foreign, state and local deferred tax liabilities						(614)						(426)
Total AIG net deferred tax assets (liabilities)			$			4,482			$			4,530

TAX EXAMINATIONS

We are currently under examination by the IRS for the tax years 2011 through 2019. We continue to engage in the IRS Appeals process for certain disagreed issues related to tax years 2007 through 2010. These tax years are still subject to ongoing computational review by IRS Appeals.

Listed below are the tax years that remain subject to examination by major tax jurisdictions:

At December 31, 2025			Open Tax Years
Major Tax Jurisdiction
United States			2007-2024
Australia			2021-2024
Canada			2021-2024
France			2023-2024
Germany			2016-2024
Japan			2019-2024
Korea			2020-2024
Singapore			2021-2024
United Kingdom			2023-2024

AIG | 2025 Form 10-K			167

ITEM 8 | Notes to Consolidated Financial Statements | 21. Income Taxes

ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

The following table presents a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits, excluding interest and penalties:

Years Ended December 31,
(in millions)						2025						2024						2023
Gross unrecognized tax benefits, beginning of year			$			1,384			$			1,387			$			1,191
Increases in tax positions for prior years						41						3						200
Decreases in tax positions for prior years						(12)						(20)						(4)
Increases in tax positions for current year						—						15						—
Lapse in statute of limitations						(1)						(1)						—
Gross unrecognized tax benefits, end of year			$			1,412			$			1,384			$			1,387

The activity in unrecognized tax benefits for the year ended December 31, 2023 is primarily attributable to the potential resolution of an IRS audit matter. There was no significant activity in unrecognized tax benefits for the years ended December 31, 2025 and December 31, 2024.

At December 31, 2025 and 2024 and 2023, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $1.4 billion. Unrecognized tax benefits that would not affect the effective tax rate generally relate to such factors as the timing, rather than the permissibility of the deduction.

Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At December 31, 2025, 2024 and 2023, we had accrued liabilities of $62 million, $53 million and $52 million, respectively for the payment of interest (net of the federal benefit) and penalties. For the years ended December 31, 2025, 2024, and 2023, we recorded expense (benefit) of $13 million, $1 million, and $(11) million, respectively, for the payment of interest and penalties. There was no significant activity in interest and penalties related to unrecognized tax benefit for the years 2025, 2024 or 2023.

NET CASH TAXES PAID

The following table presents net income taxes paid (refunded):

Year Ended December 31,
(in millions)			2025
Net Income Taxes Paid (Refunded)
U.S. federal			$	(229)
U.S. state & local:
New York			21
Other			26
Foreign:
UK			79
Canada			77
Italy			32
Japan			71
Australia			38
Mexico			31
Korea			23
Other			161
Total net income taxes paid (refunded)			$	330

22. Subsequent Events

STRATEGIC INVESTMENTS

On January 19, 2026, AIG announced a strategic partnership with CVC Capital Partners plc (CVC) to establish large-scale 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.

168			AIG | 2025 Form 10-K

Part II