Item 1. Financial Statements

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Item 1. Financial Statements

American International Group, Inc.

Condensed Consolidated Balance Sheets (unaudited)


(in millions, except for share data)	March 31, 2026		December 31, 2025
Assets:
Investments:
Fixed maturity securities:
Bonds available for sale, at fair value, net of allowance for credit losses of $38 in 2026 and $37 in 2025 (amortized cost: 2026 - $71,936; 2025 - $71,772)	$	70,528	$	71,032
Other bond securities, at fair value		677		741
Equity securities, at fair value		1,616		502
Mortgage and other loans receivable, net of allowance for credit losses of $37,713 in 2026 and $37,747 in 2025		2,813		2,887
Other invested assets (portion measured at fair value: 2026 - $3,305; 2025 - $5,011)		7,015		6,696
Short-term investments, including restricted cash of $57 in 2026 and $55 in 2025 (portion measured at fair value: 2026 - $4,877; 2025 - $5,909)		8,196		11,141
Total investments		90,845		92,999
Cash		1,454		1,274
Accrued investment income		680		691
Premiums and other receivables, net of allowance for credit losses and disputes of $135 in 2026 and $131 in 2025		11,634		10,441
Reinsurance assets - Fortitude Re		3,056		3,167
Reinsurance assets - other, net of allowance for credit losses and disputes of $246 in 2026 and $248 in 2025		35,843		34,829
Deferred income tax assets		5,062		5,096
Deferred policy acquisition costs		2,128		2,106
Goodwill		3,418		3,435
Deposit accounting assets, net of allowance for credit losses of $49 in 2026 and $49 in 2025		2,740		2,443
Other assets, including restricted cash of $17 in 2026 and $16 in 2025 (portion measured at fair value: 2026 - $0; 2025 - $135)		4,683		4,773


Total assets	$	161,543	$	161,254
Liabilities:
Liability for unpaid losses and loss adjustment expenses, including allowance for credit losses of $14 in 2026 and $14 in 2025	$	69,963	$	70,666
Unearned premiums		18,921		17,991
Future policy benefits		1,289		1,385
Other policyholder funds		334		352
Fortitude Re funds withheld payable (portion measured at fair value: 2026 - $(85); 2025 - $(92))		2,960		3,038
Premiums and other related payables		6,476		5,448
Deposit accounting liabilities		3,612		3,295
Commissions and premium taxes payable		1,494		1,556
Current and deferred income tax liabilities		652		661
Other liabilities (portion measured at fair value: 2026 - $181; 2025 - $162)		6,257		6,509
Long-term debt		9,001		9,035
Debt of consolidated investment entities		155		156


Total liabilities		121,114		120,092
Contingencies, commitments and guarantees (See Note 12)
AIG shareholders’ equity:
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2026 - 1,906,671,492 and 2025 - 1,906,671,492		4,766		4,766
Treasury stock, at cost; 2026 - 1,373,766,971 shares; 2025 - 1,368,489,324 shares of common stock		(71,647)		(71,199)
Additional paid-in capital		75,297		75,373
Retained earnings		37,704		37,186
Accumulated other comprehensive loss		(5,715)		(4,987)
Total AIG shareholders’ equity		40,405		41,139
Non-redeemable noncontrolling interests		24		23
Total equity		40,429		41,162
Total liabilities and equity	$	161,543	$	161,254

See accompanying Notes to Condensed Consolidated Financial Statements.


2			AIG \| First Quarter 2026 Form 10-Q

American International Group, Inc.

Condensed Consolidated Statements of Income (Loss) (unaudited)


	Three Months Ended March 31,
(dollars in millions, except per common share data)			2026		2025
Revenues:
Premiums		$	6,072	$	5,770
Net investment income:
Net investment income - excluding Fortitude Re funds withheld assets			689		1,065
Net investment income - Fortitude Re funds withheld assets			23		40
Total net investment income			712		1,105
Net realized gains (losses):
Net realized losses - excluding Fortitude Re funds withheld assets and embedded derivative			(132)		(60)
Net realized losses on Fortitude Re funds withheld assets			(13)		(2)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative			10		(41)
Total net realized losses			(135)		(103)
Other income			1		11
Total revenues			6,650		6,783
Benefits, losses and expenses:
Losses and loss adjustment expenses incurred			3,475		3,794
Amortization of deferred policy acquisition costs			824		825
General operating and other expenses			1,137		1,115
Interest expense			100		92

Net (gain) loss on divestitures and other			127		(3)
Total benefits, losses and expenses			5,663		5,823
Income before income tax expense			987		960



Income tax expense			224		262


Net income			763		698
Less: Net income (loss) attributable to noncontrolling interests			—		—


Net income attributable to AIG common shareholders		$	763	$	698
Net Income per common share attributable to AIG common shareholders:



Basic		$	1.42	$	1.18



Diluted		$	1.41	$	1.16
Weighted average shares outstanding:
Basic			538,053,962		593,839,665
Diluted			542,160,956		599,240,046

See accompanying Notes to Condensed Consolidated Financial Statements.


AIG \| First Quarter 2026 Form 10-Q			3

American International Group, Inc.

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


	Three Months Ended
	March 31,
(in millions)			2026		2025
Net income		$	763	$	698
Other comprehensive income (loss), net of tax
Change in unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken			(1)		4
Change in unrealized appreciation (depreciation) of all other investments			(616)		425
Change in the discount rates used to measure traditional and limited payment long-duration insurance contracts			4		6
Change in foreign currency translation adjustments			(121)		194
Change in retirement plan liabilities adjustment			6		7



Other comprehensive income (loss)			(728)		636
Comprehensive income			35		1,334
Less: Comprehensive income attributable to noncontrolling interests			—		1
Comprehensive income attributable to AIG		$	35	$	1,333

See accompanying Notes to Condensed Consolidated Financial Statements.


4			AIG \| First Quarter 2026 Form 10-Q

American International Group, Inc.

Condensed Consolidated Statements of Equity (unaudited)


(in millions, except per share data)	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
Three Months Ended March 31, 2026












Balance, beginning of the year	$	4,766	$	(71,199)	$	75,373	$	37,186	$	(4,987)	$	41,139	$	23	$	41,162

Common stock issued under stock plans		—		76		(149)		—		—		(73)		—		(73)
Purchase of common stock		—		(524)		—		—		—		(524)		—		(524)
Net income attributable to AIG or noncontrolling interests		—		—		—		763		—		763		—		763
Dividends on common stock ($0.45 per share)		—		—		—		(241)		—		(241)		—		(241)
Other comprehensive loss		—		—		—		—		(728)		(728)		—		(728)



Other		—		—		73		(4)		—		69		1		70
Balance, end of period	$	4,766	$	(71,647)	$	75,297	$	37,704	$	(5,715)	$	40,405	$	24	$	40,429



Three Months Ended March 31, 2025
Balance, beginning of year	$	4,766	$	(65,573)	$	75,348	$	35,079	$	(7,099)	$	42,521	$	29	$	42,550
Cumulative effect of change in accounting principle, net of tax
Common stock issued under stock plans		—		161		(168)		—		—		(7)		—		(7)
Purchase of common stock		—		(2,251)		—		—		—		(2,251)		—		(2,251)
Net income attributable to AIG or noncontrolling interests		—		—		—		698		—		698		—		698
Dividends on common stock ($0.40 per share)		—		—		—		(234)		—		(234)		—		(234)
Other comprehensive income		—		—		—		—		635		635		1		636


Distributions to noncontrolling interests		—		—		—		—		—		—		(1)		(1)
Other		—		1		71		(3)		—		69		(1)		68
Balance, end of period	$	4,766	$	(67,662)	$	75,251	$	35,540	$	(6,464)	$	41,431	$	28	$	41,459

See accompanying Notes to Condensed Consolidated Financial Statements.


AIG \| First Quarter 2026 Form 10-Q			5

American International Group, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)


	Three Months Ended March 31,
(in millions)		2026		2025
Cash flows from operating activities:
Net income	$	763	$	698

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		121		260
Net (gain) loss on divestitures and other		127		(3)

Unrealized (gains) losses in earnings - net		249		(317)
Equity in income from equity method investments, net of dividends or distributions		—		(3)
Depreciation and other amortization		849		866
Impairments of assets		4		—
Changes in operating assets and liabilities:
Insurance reserves		553		(319)
Premiums and other receivables and payables - net		(282)		392
Reinsurance assets, net		(1,032)		(537)
Capitalization of deferred policy acquisition costs		(895)		(761)
Current and deferred income taxes - net		128		165
Other, net		(430)		(497)
Total adjustments		(608)		(754)


Net cash provided by (used in) operating activities		155		(56)
Cash flows from investing activities:
Proceeds from (payments for)
Sales or distributions of:
Available for sale securities		3,781		4,762
Other securities		115		18
Other invested assets		1,194		316

Maturities of fixed maturity securities available for sale		2,881		2,060
Principal payments received on and sales of mortgage and other loans receivable		119		254
Purchases of:
Available for sale securities		(7,061)		(7,951)
Other securities		(674)		(40)
Other invested assets		(2,332)		(256)
Mortgage and other loans receivable		(70)		(75)
Net change in short-term investments		2,947		3,877
Other, net		(67)		(214)


Net cash provided by investing activities		833		2,751
Cash flows from financing activities:
Proceeds from (payments for)


Repayments of long-term debt		(7)		(247)
Repayments of debt of consolidated investment entities		(1)		(1)
Purchase of common stock		(508)		(2,229)


Dividends on common stock		(241)		(234)
Other, net		(42)		34


Net cash used in financing activities		(799)		(2,677)
Effect of exchange rate changes on cash and restricted cash		(6)		18
Net increase in cash and restricted cash		183		36
Cash and restricted cash at beginning of year		1,345		1,372

Cash and restricted cash at end of period	$	1,528	$	1,408


6			AIG \| First Quarter 2026 Form 10-Q

American International Group, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)(continued)

Supplementary Disclosure of Condensed Consolidated Cash Flow Information


	Three Months Ended March 31,
(in millions)	2026		2025
Cash	$	1,454	$	1,393
Restricted cash included in Short-term investments*	57		2
Restricted cash included in Other assets*	17		13
Total cash and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	1,528	$	1,408
Cash paid during the period for:
Interest	$	67	$	72
Taxes	$	96	$	96
Non-cash investing activities:


Fixed maturity securities and other invested assets transferred in connection with reinsurance transactions	$	—	$	(17)

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

See accompanying Notes to Condensed Consolidated Financial Statements.


AIG \| First Quarter 2026 Form 10-Q			7

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

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.

These unaudited Condensed Consolidated Financial Statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) and should be read in conjunction with the audited Consolidated Financial Statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the 2025 Annual Report). The condensed consolidated financial information as of December 31, 2025 included herein has been derived from the audited Consolidated Financial Statements in the 2025 Annual Report.

In the opinion of management, these Condensed Consolidated Financial Statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein. Results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

We evaluated the need to recognize or disclose events that occurred subsequent to March 31, 2026 and prior to the issuance of these Condensed Consolidated Financial Statements. There were no significant subsequent events that required disclosure.

STRATEGIC INVESTMENTS

On February 6, 2026, AIG closed its previously announced acquisitions of (i) a 35 percent equity interest in Convex Group Limited (Convex), a global specialty insurer, for $2.1 billion and (ii) a 9.9 percent ownership stake in Onex Corporation (Onex), a global asset manager, for $642 million. AIG reflects its interest in Convex as an equity method investment in Other invested assets. The difference between the purchase price and the value of the underlying net assets acquired is primarily comprised of intangible assets and other basis differences of approximately $450 million and goodwill of approximately $550 million. AIG records its proportionate share of Convex’s net income less amortization of the basis differences described above as a component of Net investment income reported in General Insurance.

On December 23, 2025, AIG entered into a whole account quota share agreement with Convex to reinsure 7.5 percent, 10.0 percent and 12.5 percent of Convex’s underwriting portfolio beginning in 2026, 2027 and 2028, respectively. The quota share agreement became effective starting on January 1, 2026.

SALE OF ASSETS

Corebridge

On February 17, 2026, Corebridge Financial, Inc. (Corebridge) purchased 24.7 million shares of Corebridge common stock from AIG at a per share purchase price of $30.42 with aggregate proceeds to AIG Parent of $750 million. On March 23, 2026, in light of the reduction in AIG’s ownership interest in Corebridge, the two remaining AIG designees resigned from Corebridge's board of directors.

As of March 31, 2026, AIG held 5.6 percent of the outstanding common stock of Corebridge and we concluded that we no longer have the ability to exert significant influence over Corebridge. AIG's remaining interest in Corebridge changed from being recognized as an equity method investment in Other invested assets to an equity security, at fair value on our Condensed Consolidated Balance Sheets. AIG continues to use Corebridge’s stock price as its fair value for reporting purposes. Dividends received from Corebridge and changes in its stock price continue to be recognized in Net investment income.


8			AIG \| First Quarter 2026 Form 10-Q

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

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.

OUT OF PERIOD ADJUSTMENTS - THREE MONTHS ENDED MARCH 31, 2025

During the three months ended March 31, 2025, we recorded out of period adjustments relating to prior years that increased Net income attributable to AIG common shareholders by $51 million and increased Income before income tax expense by $140 million. The out of period adjustments were primarily related to the recognition of gains on intercompany investment transactions and the settlement of derivative and collateral transactions. We evaluated the aggregate impact of these out of period adjustments and concluded they were not material to any previously issued interim and annual Consolidated Financial Statements and that the adjustments were not material to AIG’s Consolidated Financial Statements for the year ended December 31, 2025. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Income before income tax expense for the year ended December 31, 2024 would have decreased by $79 million and would have increased for the years ended December 31, 2023 and 2022 by $34 million and $42 million (and all prior years by $143 million), respectively. Had these adjustments, which were determined not to be material, been recorded in their appropriate periods, Net income attributable to AIG common shareholders for the year ended December 31, 2024 would have decreased by $68 million and would have increased for the years ended December 31, 2023 and 2022 by $19 million and $23 million (and all prior years by $77 million), respectively.

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.


AIG \| First Quarter 2026 Form 10-Q			9

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

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) to benchmark and assess AIG's performance by segment and establish management’s compensation. Our general insurance business (General Insurance) consists of our three segments and the Net investment income and Amortization of intangible assets including renewal rights related to our insurance operations.

In the first quarter of 2026, AIG realigned and began reporting Amortization of intangible assets in General Insurance from Other Operations; historical results have been recast to reflect these changes.

NORTH AMERICA COMMERCIAL

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

INTERNATIONAL COMMERCIAL

GLOBAL PERSONAL

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 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.


10			AIG \| First Quarter 2026 Form 10-Q

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

The following table presents AIG’s operations by segment:


Three Months Ended March 31, 2026
(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 Pre-tax Income (Loss)

North America Commercial	$	1,605	$	2,253	$	1,421	$	213	$	68	$	224	$	327
International Commercial	2,450		2,187		1,246		278		85		300		278
Global Personal	1,544		1,612		842		327		80		194		169
Total General Insurance(c)	$	5,599	$	6,052	$	3,509	$	818	$	233	$	718	$	774	$	864	$	1,628

Interest expense															—		(100)
Other Operations															52		(25)
Elimination and consolidations															(1)		—
Total															915		1,503
Reconciling items:
Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares															(237)		(237)
Other income (expense) - net															2		—

Net investment income on Fortitude Re funds withheld assets															23		23
Net realized losses on Fortitude Re funds withheld assets															—		(13)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative															—		10
Net realized losses(d)															—		(136)
Net gain (loss) on divestitures and other(e)															—		(127)

(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements															—		8
Net loss reserve discount benefit (charge)															—		48
Net results of businesses in run-off(f)															9		(5)
Non-operating pension expenses															—		1
Integration and transaction costs associated with acquiring or divesting businesses															—		(7)
Restructuring and other costs															—		(76)
Non-recurring costs related to regulatory or accounting changes															—		(5)
Total AIG Consolidated															$	712	$	987


Three Months Ended March 31, 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 Pre-tax Income (Loss)

North America Commercial	$	1,174	$	2,124	$	1,526	$	227	$	47	$	195	$	129
International Commercial	2,027		2,051		1,178		245		94		294		240
Global Personal	1,325		1,594		1,062		353		91		214		(126)
Total General Insurance(c)	$	4,526	$	5,769	$	3,766	$	825	$	232	$	703	$	243	$	736	$	975

Interest expense															—		(91)
Other Operations															108		25
Elimination and consolidations															1		—
Total															845		909
Reconciling items:
Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares															217		217


Net investment income on Fortitude Re funds withheld assets															40		40
Net realized losses on Fortitude Re funds withheld assets															—		(2)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative															—		(41)
Net realized losses(d)															(2)		(66)
Net gain (loss) on divestitures and other															—		3
Non-operating litigation reserves and settlements															—		11
(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements															—		(9)
Net loss reserve discount benefit (charge)															—		(17)
Net results of businesses in run-off(f)															5		5
Non-operating pension expenses															—		(5)
Integration and transaction costs associated with acquiring or divesting businesses															—		(5)
Restructuring and other costs															—		(76)
Non-recurring costs related to regulatory or accounting changes															—		(4)
Total AIG Consolidated															$	1,105	$	960


AIG \| First Quarter 2026 Form 10-Q			11

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

(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)Amortization of intangible assets including renewal rights was $10 million and $4 million for the three months ended March 31, 2026 and 2025, respectively.

(d)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).

(e)In the three months ended March 31, 2026, Net gain (loss) on divestitures and other primarily relates to a change in estimate for earn-out considerations associated with the dispositions of Validus Reinsurance, Ltd. and global personal travel and assistance business.

(f)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.

Fair Value Measurements

FAIR VALUE MEASUREMENTS ON A RECURRING BASIS

Assets and liabilities recorded at fair value in the Condensed 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.

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:


March 31, 2026		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	$	450	$	1,866	$	—	$	—	$	—	$	2,316
Obligations of states, municipalities and political subdivisions		—		2,692		4		—		—		2,696
Non-U.S. governments		109		6,175		7		—		—		6,291
Corporate debt		—		37,717		85		—		—		37,802
RMBS		—		9,586		1,486		—		—		11,072
CMBS		—		4,611		25		—		—		4,636
CLO/ABS		—		4,032		1,683		—		—		5,715
Total bonds available for sale		559		66,679		3,290		—		—		70,528
Other bond securities:

Obligations of states, municipalities and political subdivisions		—		50		—		—		—		50
Non-U.S. governments		—		21		—		—		—		21
Corporate debt		—		204		—		—		—		204
RMBS		—		43		50		—		—		93
CMBS		—		42		—		—		—		42
CLO/ABS		—		150		117		—		—		267
Total other bond securities		—		510		167		—		—		677


12			AIG \| First Quarter 2026 Form 10-Q

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


March 31, 2026		Level 1		Level 2		Level 3	Counterparty Netting(a)		Cash Collateral			Total
(in millions)
Equity securities(b)		1,559		3		54		—		—		1,616
Other invested assets(c)		—		137		93		—		—		230
Derivative assets(d)		—		314		25		(143)		(196)		—
Short-term investments		3,253		1,624		—		—		—		4,877

Total	$	5,371	$	69,267	$	3,629	$	(143)	$	(196)	$	77,928
Liabilities:
Derivative liabilities(d)	$	—	$	387	$	25	$	(143)	$	(175)	$	94
Fortitude Re funds withheld payable		—		—		(85)		—		—		(85)
Other liabilities(d)		13		—		74		—		—		87

Total	$	13	$	387	$	14	$	(143)	$	(175)	$	96


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(b)		446		1		55		—		—		502
Other invested assets (c)		1,512		143		92		—		—		1,747
Derivative assets(d)		—		312		26		(164)		(169)		5
Short-term investments		4,106		1,803		—		—		—		5,909
Other assets(d)		—		—		130		—		—		130
Total	$	6,339	$	70,136	$	3,924	$	(164)	$	(169)	$	80,066
Liabilities:
Derivative liabilities(d)	$	—	$	439	$	26	$	(164)	$	(212)	$	89
Fortitude Re funds withheld payable		—		—		(92)		—		—		(92)
Other liabilities(d)		—		—		73		—		—		73

Total	$	—	$	439	$	7	$	(164)	$	(212)	$	70

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

(b)As of March 31, 2026, includes AIG's ownership interests in Corebridge and Onex of $607 million and $548 million, respectively.

(c)Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $3.1 billion and $3.3 billion as of March 31, 2026 and December 31, 2025, respectively. As of December 31, 2025, includes AIG's ownership interest in Corebridge of $1.5 billion on which AIG elected the fair value option.

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


AIG \| First Quarter 2026 Form 10-Q			13

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

CHANGES IN LEVEL 3 RECURRING FAIR VALUE MEASUREMENTS

The following tables present changes during the three months ended March 31, 2026 and 2025 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets at March 31, 2026 and 2025:


(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 Period		Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period		Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period
Three Months Ended March 31, 2026
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	4	$	—	$	—	$	—	$	—	$	—	$	—	$	4	$	—	$	—
Non-U.S. governments	23		1		—		(3)		—		(14)		—		7		—		—
Corporate debt	113		—		(2)		(1)		1		(26)		—		85		—		6
RMBS	1,546		6		(37)		(37)		8		—		—		1,486		—		17
CMBS	24		—		—		(4)		5		—		—		25		—		—
CLO/ABS	1,741		1		(1)		(58)		—		—		—		1,683		—		10
Total bonds available for sale	3,451		8		(40)		(103)		14		(40)		—		3,290		—		33
Other bond securities:


RMBS	51		—		—		(1)		—		—		—		50		1		—

CLO/ABS	119		—		—		(2)		—		—		—		117		3		—
Total other bond securities	170		—		—		(3)		—		—		—		167		4		—
Equity securities	55		(3)		—		2		—		—		—		54		—		—
Other invested assets	92		1		—		—		—		—		—		93		1		—

Other assets	130		—		—		—		—		—		(130)		—		—		—
Total	$	3,898	$	6	$	(40)	$	(104)	$	14	$	(40)	$	(130)	$	3,604	$	5	$	33


(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 Period		Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period		Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period
Liabilities:

Fortitude Re funds withheld payable	$	(92)	$	(10)	$	—	$	17	$	—	$	—	$	—	$	(85)	$	17	$	—
Other Liabilities	73		1		—		—		—		—		—		74		—		—
Total	$	(19)	$	(9)	$	—	$	17	$	—	$	—	$	—	$	(11)	$	17	$	—


(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		Fair Value End of Period		Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period		Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period
Three Months Ended March 31, 2025
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	3	$	—	$	—	$	—	$	—	$	—	$	3	$	—	$	—
Non-U.S. governments	7		—		—		—		—		—		7		—		—
Corporate debt	240		(9)		10		(125)		—		(1)		115		—		9
RMBS	1,894		7		33		(57)		3		(224)		1,656		—		17
CMBS	26		—		—		(4)		4		—		26		—		—
CLO/ABS	840		1		1		79		—		(6)		915		—		1
Total bonds available for sale	3,010		(1)		44		(107)		7		(231)		2,722		—		27
Other bond securities:

Corporate debt	1		—		—		—		—		—		1		—		—
RMBS	50		1		—		(1)		—		—		50		1		—

CLO/ABS	113		3		—		(4)		31		(23)		120		3		—
Total other bond securities	164		4		—		(5)		31		(23)		171		4		—


14			AIG \| First Quarter 2026 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 4. 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		Fair Value End of Period		Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period		Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period
Equity securities	15		1		—		10		9		—		35		—		—
Other invested assets	163		—		—		(24)		—		(63)		76		—		—

Other assets	129		—		—		—		—		—		129		—		—
Total	$	3,481	$	4	$	44	$	(126)	$	47	$	(317)	$	3,133	$	4	$	27


(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		Fair Value End of Period		Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period		Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss) for Recurring Level 3 Instruments Held at End of Period
Liabilities:

Fortitude Re funds withheld payable	$	(128)	$	41	$	—	$	8	$	—	$	—	$	(79)	$	(2)	$	—
Other liabilities	100		—		—		—		—		—		100		—		—
Total	$	(28)	$	41	$	—	$	8	$	—	$	—	$	21	$	(2)	$	—

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


(in millions)	Net Investment Income		Net Realized Gains (Losses)		Total













Three Months Ended March 31, 2026
Assets:
Bonds available for sale	$	7	$	1	$	8

Equity securities	(3)		—		(3)
Other invested assets	1		—		1

Three Months Ended March 31, 2025
Assets:
Bonds available for sale	$	8	$	(9)	$	(1)
Other bond securities	4		—		4
Equity securities	1		—		1


(in millions)	Net Investment Income		Net Realized (Gains) Losses		Total











Three Months Ended March 31, 2026
Liabilities:

Fortitude Re funds withheld payable	$	—	$	(10)	$	(10)
Other Liabilities	—		1		1
Three Months Ended March 31, 2025
Liabilities:

Fortitude Re funds withheld payable	$	—	$	41	$	41

The following table presents the gross components of purchases, sales, issuances and settlements, net, shown above, for the three months ended March 31, 2026 and 2025 related to Level 3 assets and liabilities in the Condensed Consolidated Balance Sheets:


(in millions)	Purchases		Sales		Issuances and Settlements(a)		Purchases, Sales, Issuances and Settlements, Net(a)
Three Months Ended March 31, 2026
Assets:
Bonds available for sale:

Non-U.S. governments	$	3	$	(3)	$	(3)	$	(3)
Corporate debt	4		(5)		—		(1)
RMBS	9		—		(46)		(37)
CMBS	—		(2)		(2)		(4)


AIG \| First Quarter 2026 Form 10-Q			15

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


(in millions)	Purchases		Sales		Issuances and Settlements(a)		Purchases, Sales, Issuances and Settlements, Net(a)
CLO/ABS	127		(27)		(158)		(58)
Total bonds available for sale	143		(37)		(209)		(103)
Other bond securities:


RMBS	—		—		(1)		(1)

CLO/ABS	—		—		(2)		(2)
Total other bond securities	—		—		(3)		(3)
Equity securities	16		(14)		—		2
Other invested assets	1		—		(1)		—

Total	$	160	$	(51)	$	(213)	$	(104)
Liabilities:

Fortitude Re funds withheld payable	$	—	$	—	$	17	$	17

Total	$	—	$	—	$	17	$	17
Three Months Ended March 31, 2025
Assets:
Bonds available for sale:


Corporate Debt	$	3	$	(4)	$	(124)	$	(125)
RMBS	—		(3)		(54)		(57)
CMBS	—		(4)		—		(4)
CLO/ABS	146		(37)		(30)		79
Total bonds available for sale	149		(48)		(208)		(107)
Other bond securities:


RMBS	—		—		(1)		(1)

CLO/ABS	—		—		(4)		(4)
Total other bond securities	—		—		(5)		(5)
Equity securities	14		(4)		—		10
Other invested assets	—		—		(24)		(24)

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

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

Total	$	—	$	—	$	8	$	8

(a)There were no issuances during the three months ended March 31, 2026 and 2025.

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 March 31, 2026 and 2025 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities).

Transfers of Level 3 Assets and Liabilities

The Net realized and unrealized gains (losses) included in income (loss) or Other comprehensive income (loss) (OCI) as shown in the table above excludes $0 million and $2 million of net gains (losses) related to assets and liabilities transferred into Level 3 during the three months ended March 31, 2026 and 2025, respectively, and includes $1 million and $5 million of net gains (losses) related to assets and liabilities transferred out of Level 3 during the three months ended March 31, 2026 and 2025, respectively.

Transfers of Level 3 Assets

During the three months ended March 31, 2026 and 2025, 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 three months ended March 31, 2026 and 2025, transfers out of Level 3 assets primarily included investments in private placement corporate debt, RMBS, CLO/ABS and other invested assets. 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


16			AIG \| First Quarter 2026 Form 10-Q

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

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 three months ended March 31, 2026 and 2025.

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 March 31, 2026		Valuation Technique	Unobservable Input(b)	Range (Weighted Average)(c)
Assets:
Obligations of states, municipalities and political subdivisions	$	2	Discounted cash flow	Yield	5.33% - 5.33% (5.33%)

RMBS(a)		1,135	Discounted cash flow	Constant prepayment rate	3.95% - 7.19% (5.57%)
				Loss severity	37.41% - 64.98% (51.19%)
				Constant default rate	0.49% - 1.87% (1.18%)
				Yield	5.46% - 6.73% (6.10%)
CLO/ABS(a)		1,197	Discounted cash flow	Yield	4.40% - 5.82% (5.11%)
CMBS		25	Discounted cash flow	Yield	3.81% - 11.75% (6.16%)


(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%)

(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.


AIG \| First Quarter 2026 Form 10-Q			17

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

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.


			March 31, 2026				December 31, 2025
(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	$	1,123	$	422	$	1,142	$	450
Real assets	Investments in real estate properties, agricultural and infrastructure assets, including power plants and other energy producing assets		417		61		496		67
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		89		30		87		31
Growth equity	Funds that make investments in established companies for the purpose of growing their businesses		174		10		172		11
Mezzanine	Funds that make investments in the junior debt and equity securities of leveraged companies		79		51		92		54
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		1,063		601		1,101		653
Total private equity funds			2,945		1,175		3,090		1,266
Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		10		—		10		—
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		110		—		155		—

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		10		—		9		—
Total hedge funds			130		—		174		—
Total		$	3,075	$	1,175	$	3,264	$	1,266

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.


18			AIG \| First Quarter 2026 Form 10-Q

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

FAIR VALUE OPTION

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


Three Months Ended March 31,	Gain (Loss)
(in millions)			2026		2025

Other bond securities(a)		$	(3)	$	11
Alternative investments(b)			(8)		24
Retained investment in Corebridge(c)			(154)		209


Total gain (loss)		$	(165)	$	244

(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 5. For additional information regarding the funds withheld arrangements with Fortitude Re, see Note 7.

(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 through March 31, 2026. At March 31, 2026, AIG's remaining interest in Corebridge changed from being recognized as an equity method investment in Other invested assets to an equity security, at fair value. For additional information, see Note 1.

FAIR VALUE INFORMATION ABOUT FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE

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
March 31, 2026
Assets:
Mortgage and other loans receivable	$	—	$	307	$	2,443	$	2,750	$	2,813
Other invested assets		—		480		12		492		492
Short-term investments		—		3,319		—		3,319		3,319
Cash		1,454		—		—		1,454		1,454
Other assets		17		—		—		17		17
Liabilities:
Fortitude Re funds withheld payable		—		—		3,045		3,045		3,045

Long-term debt		—		8,461		—		8,461		9,001
Debt of consolidated investment entities		—		—		155		155		155


		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


AIG \| First Quarter 2026 Form 10-Q			19

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

Investments

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
March 31, 2026
Bonds available for sale:
U.S. government and government sponsored entities	$	2,385	$	—	$	19	$	(88)	$	2,316
Obligations of states, municipalities and political subdivisions		2,694		—		54		(52)		2,696
Non-U.S. governments		6,633		—		53		(395)		6,291
Corporate debt		38,737		(32)		318		(1,221)		37,802
Mortgage-backed, asset-backed and collateralized:
RMBS		11,150		(5)		231		(304)		11,072
CMBS		4,626		(1)		50		(39)		4,636
CLO/ABS		5,711		—		25		(21)		5,715
Total mortgage-backed, asset-backed and collateralized		21,487		(6)		306		(364)		21,423
Total bonds available for sale(b)	$	71,936	$	(38)	$	750	$	(2,120)	$	70,528
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
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

(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 March 31, 2026 and December 31, 2025, the fair value of bonds available for sale held by us that were below investment grade or not rated totaled $5.7 billion or 8 percent and $5.9 billion or 8 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
March 31, 2026
Bonds available for sale:
U.S. government and government sponsored entities	$	645	$	8	$	305	$	80	$	950	$	88
Obligations of states, municipalities and political subdivisions		283		5		541		47		824		52
Non-U.S. governments		2,147		46		1,503		349		3,650		395
Corporate debt		13,598		279		7,786		938		21,384		1,217
RMBS		3,376		33		1,645		255		5,021		288
CMBS		1,283		12		529		24		1,812		36
CLO/ABS		2,429		14		180		7		2,609		21
Total bonds available for sale	$	23,761	$	397	$	12,489	$	1,700	$	36,250	$	2,097


20			AIG \| First Quarter 2026 Form 10-Q

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


		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

At March 31, 2026, we held 10,977 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 4,249 individual fixed maturity securities that were in a continuous unrealized loss position for 12 months or more). 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). We did not recognize the unrealized losses in earnings on these fixed maturity securities at March 31, 2026 because it was determined that such losses were due to non-credit factors. Additionally, we neither intend to sell the securities nor do we believe that it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. For fixed maturity securities with significant declines, we performed fundamental credit analyses on a security-by-security basis, which included consideration of credit enhancements, liquidity position, expected defaults, industry and sector analysis, forecasts and available market data.

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:


March 31, 2026	Total Fixed Maturity Securities Available for Sale
(in millions)	Amortized Cost, Net of Allowance		Fair Value

Due in one year or less	$	3,911	$	3,892
Due after one year through five years	23,182		23,055
Due after five years through ten years	16,184		15,914
Due after ten years	7,140		6,244
Mortgage-backed, asset-backed and collateralized	21,481		21,423
Total	$	71,898	$	70,528

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:


	Three Months Ended March 31,
		2026	2025
(in millions)					Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses
Fixed maturity securities				$	20	$	150	$	16	$	278

For the three months ended March 31, 2026 and 2025, the aggregate fair value of available for sale securities sold was $3.8 billion and $4.8 billion, respectively, which resulted in net realized gains (losses) of $(130) million and $(262) million, respectively. Included within the net realized gains (losses) are $(15) million and $(7) million of net realized gains (losses) for the three months ended March 31, 2026 and 2025, respectively, which relate to Fortitude Re funds withheld assets. These net realized gains (losses) are included in Net realized gains (losses) on Fortitude Re funds withheld assets.


AIG \| First Quarter 2026 Form 10-Q			21

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

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)			March 31, 2026					December 31, 2025
	Fair Value		Percent of Total			Fair Value		Percent of Total
Fixed maturity securities:

Obligations of states, municipalities and political subdivisions		$	50	2	%		$	51	4	%
Non-U.S. governments			21	1				23	2
Corporate debt			204	9				274	22
Mortgage-backed, asset-backed and collateralized:
RMBS			93	4				97	8
CMBS			42	2				42	3
CLO/ABS and other collateralized securities			267	12				254	20
Total mortgage-backed, asset-backed and collateralized			402	18				393	31
Total fixed maturity securities			677	30				741	59
Equity securities*			1,616	70				502	41
Total		$	2,293	100	%		$	1,243	100	%

*At March 31, 2026, includes AIG’s interest in Onex of $548 million that is restricted from sale or transfer until February 6, 2029, except in the event of a change in control at Onex. Also includes AIG's remaining interest in Corebridge of $607 million that changed following loss of significant influence from an equity method investment recorded in Other invested assets to an equity security, at fair value.

OTHER INVESTED ASSETS

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


(in millions)	March 31, 2026		December 31, 2025
Alternative investments(a)	$	3,227	$	3,456
Retained investment in Corebridge using fair value option(b)	—		1,512
Investment in Convex	2,155		—
All other investments(c)	1,633		1,728
Total	$	7,015	$	6,696

(a)At March 31, 2026, includes hedge funds of $130 million and private equity funds of $2.9 billion. At December 31, 2025, included hedge funds of $175 million and private equity funds of $3.0 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 March 31, 2026 and December 31, 2025, the accumulated depreciation was $143 million and $142 million, respectively.

(b)At March 31, 2026, AIG's remaining interest in Corebridge changed from being recognized as an equity method investment in Other invested assets to an equity security, at fair value.

(c)All other investments include bank deposits with a maturity greater than one year and investments in joint ventures with strategic partners, including $254 million and $300 million in DaVinciRe Holdings Ltd, Class D, which is recorded as a measurement alternative equity security at March 31, 2026 and December 31, 2025, respectively.

NET INVESTMENT INCOME

The following table presents the components of Net investment income:


Three Months Ended March 31,	2026						2025
(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
Available for sale fixed maturity securities, including short-term investments	$	895	$	20	$	915	$	790	$	22	$	812
Other fixed maturity securities		(1)		(3)		(4)		—		11		11
Equity securities		(77)		—		(77)		9		—		9
Interest on mortgage and other loans		33		5		38		44		7		51
Alternative investments(a)		8		—		8		43		—		43
Other investments(b)		(129)		1		(128)		217		—		217
Total investment income		729		23		752		1,103		40		1,143
Investment expenses		40		—		40		38		—		38
Net investment income	$	689	$	23	$	712	$	1,065	$	40	$	1,105


22			AIG \| First Quarter 2026 Form 10-Q

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

(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 AIG's share of Convex’s net income less amortization of intangible asset basis differences. Additionally, includes dividends received from Corebridge, changes in the fair value of AIG's investment in Corebridge and gain/loss on sale of shares of $6 million and $(154) million, respectively, for the three months ended March 31, 2026 and $31 million and $209 million, respectively, for the three months ended March 31, 2025.

NET REALIZED GAINS AND LOSSES

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


Three Months Ended March 31,	2026						2025
(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
Sales of fixed maturity securities	$	(115)	$	(15)	$	(130)	$	(255)	$	(7)	$	(262)

Change in allowance for credit losses on fixed maturity securities		(2)		1		(1)		8		—		8
Change in allowance for credit losses on loans		33		1		34		5		4		9
Foreign exchange transactions		(19)		(3)		(22)		220		6		226
All other derivatives and hedge accounting		2		4		6		(28)		(6)		(34)
Sales of alternative investments		22		—		22		—		—		—
Other		(53)		(1)		(54)		(10)		1		(9)
Net realized gains (losses) – excluding Fortitude Re funds withheld embedded derivative		(132)		(13)		(145)		(60)		(2)		(62)
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative		—		10		10		—		(41)		(41)
Net realized losses	$	(132)	$	(3)	$	(135)	$	(60)	$	(43)	$	(103)

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF INVESTMENTS

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



Three Months Ended March 31,
(in millions)		2026		2025
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	(667)	$	322
Other investments		(38)		—
Total increase (decrease) in unrealized appreciation (depreciation) of investments	$	(705)	$	322

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


Three Months Ended March 31,	2026						2025

(in millions)	Equities		Other Invested Assets*		Total		Equities		Other Invested Assets*		Total
Net gains (losses) recognized during the period on equity securities and other investments	$	(83)	$	(158)	$	(241)	$	9	$	233	$	242
Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period	17		(11)		6		13		(1)		12
Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date	$	(100)	$	(147)	$	(247)	$	(4)	$	234	$	230

*Includes unrealized gains (losses) on changes in the fair value of AIG's investment in Corebridge and gain/loss on sale of shares of $(154) million and $209 million in the three months ended March 31, 2026 and 2025, respectively. At March 31, 2026, AIG's remaining interest in Corebridge changed from being recognized as an equity method investment in Other invested assets to an equity security, at fair value. For additional information, see Note 1.

EVALUATING INVESTMENTS FOR AN ALLOWANCE FOR CREDIT LOSSES AND IMPAIRMENTS

For a discussion of our policy for evaluating investments for an allowance for credit losses, see Note 6 to the Consolidated Financial Statements in the 2025 Annual Report.


AIG \| First Quarter 2026 Form 10-Q			23

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

Credit Impairments

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


Three Months Ended March 31,	2026						2025
(in millions)	Structured		Non- Structured			Total	Structured		Non- Structured			Total
Balance, beginning of year	$	5	$	32	$	37	$	10	$	28	$	38
Additions:
Securities for which allowance for credit losses was not previously recorded		2		4		6		—		2		2


Reductions:
Securities sold during the period		(1)		(2)		(3)		—		(4)		(4)
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		—		(2)		(2)		1		1		2
Write-offs charged against the allowance		—		—		—		—		(8)		(8)

Balance, end of period	$	6	$	32	$	38	$	11	$	19	$	30

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 purchased credit deteriorated (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 three months ended March 31, 2026 and 2025.

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 agreements to resell (reverse repurchase agreements), which are accounted for as secured financing transactions and reported as short-term investments or other assets, depending on their terms. 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.


24			AIG \| First Quarter 2026 Form 10-Q

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

At March 31, 2026 and December 31, 2025, the fair value of securities pledged to us under reverse repurchase agreements totaled $1.6 billion and $3.6 billion, respectively, and the carrying value of reverse repurchase agreements totaled $1.6 billion and $3.6 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.

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 $7.4 billion and $7.7 billion at March 31, 2026 and December 31, 2025, 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 $14 million of stock in FHLBs at March 31, 2026 and December 31, 2025, respectively. In addition, our subsidiaries have pledged securities available for sale with a fair value of $2.3 billion at March 31, 2026 and $2.4 billion at December 31, 2025.

Investments held in escrow accounts or otherwise subject to restriction as to their use were $55 million and $54 million, comprised of short-term investments at March 31, 2026, and bonds available for sale and short-term investments at December 31, 2025.

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

Lending Activities

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


(in millions)	March 31, 2026		December 31, 2025
Commercial mortgages(a)	$	2,409	$	2,495

Commercial loans, other loans and notes receivable(b)	481		503
Total mortgage and other loans receivable(c)	2,890		2,998
Allowance for credit losses(c)	(77)		(111)
Mortgage and other loans receivable, net(c)	$	2,813	$	2,887

(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 14 percent, respectively, at March 31, 2026 and 14 percent and 13 percent, respectively, at December 31, 2025).

(b)There were no loans that were held-for-sale carried at lower of cost or market as of March 31, 2026 and December 31, 2025.

(c)Excludes $37.6 billion at both March 31, 2026 and December 31, 2025 of loans receivable from AIG Financial Products Corp. (AIGFP), which has a full allowance for credit losses, recognized upon the deconsolidation of AIGFP. For additional information, see Note 7 to the Consolidated Financial Statements in the 2025 Annual Report.

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 March 31, 2026 and December 31, 2025, $119 million and $160 million, respectively, of commercial mortgage loans were placed on nonaccrual status.

Accrued interest is presented separately and is included in Accrued investment income on the Condensed Consolidated Balance Sheets. As of March 31, 2026 and December 31, 2025, accrued interest receivable associated with commercial mortgage loans was $11 million and $11 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.


AIG \| First Quarter 2026 Form 10-Q			25

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

CREDIT QUALITY OF COMMERCIAL MORTGAGES

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


March 31, 2026		2026		2025		2024		2023		2022		Prior		Total
(in millions)
Less than 65%	$	40	$	14	$	37	$	226	$	90	$	1,222	$	1,629


65% to 80%		—		—		—		—		—		512		512
Greater than 80%		—		—		—		5		23		240		268
Total commercial mortgages	$	40	$	14	$	37	$	231	$	113	$	1,974	$	2,409

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 80%		—		—		11		—		77		463		551
Greater than 80%		—		—		5		23		47		234		309
Total commercial mortgages	$	14	$	38	$	229	$	117	$	592	$	1,505	$	2,495

(a)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 66 percent and 71 percent at March 31, 2026 and December 31, 2025, 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.

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
March 31, 2026
Past Due Status:
In good standing	133	$	750	$	941	$	293	$	153	$	164	$	50	$	2,351	98	%
90 days or less delinquent	—		—		—		—		—		—		—		—	—
>90 days delinquent or in process of foreclosure	4		—		26		32		—		—		—		58	2
Total*	137	$	750	$	967	$	325	$	153	$	164	$	50	$	2,409	100	%
Allowance for credit losses		$	1	$	56	$	10	$	—	$	10	$	—	$	77	3	%




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	%

*Does not reflect allowance for credit losses.

METHODOLOGY USED TO ESTIMATE THE ALLOWANCE FOR CREDIT LOSSES

For a discussion of our accounting policy for evaluating Mortgage and other loans receivable for impairment, see Note 7 to the Consolidated Financial Statements in the 2025 Annual Report.

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


Three Months Ended March 31,
(in millions)	2026		2025
Allowance, beginning of year	$	111	$	164



Addition to (release of) allowance for loan losses	(34)		(9)


Allowance, end of period	$	77	$	155

(a)Does not include allowance for credit losses of $0 million and $8 million at March 31, 2026 and 2025, respectively, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

(b)Excludes $37.6 billion of loan receivable from AIGFP, which has a full allowance for credit losses, recognized upon the deconsolidation of AIGFP. For additional information, see Note 7 to the Consolidated Financial Statements in the 2025 Annual Report.


26			AIG \| First Quarter 2026 Form 10-Q

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

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

For a discussion of our accounting policy for loan modifications, see Note 7 to the Consolidated Financial Statements in the 2025 Annual Report.

There were no loans that had defaulted during the three months ended March 31, 2026 and 2025, 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 March 31, 2026 are current and performing in accordance with their modified terms.

Reinsurance

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 March 31, 2026, $3.1 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:


	March 31, 2026				December 31, 2025
(in millions)	Carrying Value			Fair Value	Carrying Value			Fair Value	Corresponding Accounting Policy
Fixed maturity securities - available for sale(a)	$	1,697	$	1,697	$	1,780	$	1,780	Fair value through other comprehensive income (loss)
Fixed maturity securities - fair value option		670		670		734		734	Fair value through net investment income
Commercial mortgage and other loans		345		336		359		344	Amortized cost
Short-term investments		155		155		43		43	Fair value through net investment income
Funds withheld investment assets		2,867		2,858		2,916		2,901
Derivative assets, net(b)		1		1		—		—	Fair value through net realized gains (losses)
Other(c)		101		101		137		137	Amortized cost
Total	$	2,969	$	2,960	$	3,053	$	3,038

(a)The change in the net unrealized gains (losses) on available for sale securities related to the Fortitude Re funds withheld assets was $(17) million ($(13) million after-tax) and $85 million ($67 million after-tax), respectively, for the three months ended March 31, 2026 and for the year ended December 31, 2025.

(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 $2 million and $27 million, respectively, as of March 31, 2026. 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. These derivative assets and liabilities are fully collateralized either by cash or securities.

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


AIG \| First Quarter 2026 Form 10-Q			27

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

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


Three Months Ended March 31,
(in millions)		2026		2025

Net investment income - Fortitude Re funds withheld assets	$	23	$	40
Net realized gains (losses) on Fortitude Re funds withheld assets:
Net realized losses - Fortitude Re funds withheld assets		(13)		(2)
Net realized gains (losses) - Fortitude Re funds withheld embedded derivative		10		(41)
Net realized losses on Fortitude Re funds withheld assets		(3)		(43)
Income (loss) before income tax expense (benefit)		20		(3)
Income tax expense (benefit)(a)		4		(1)
Net income (loss)		16		(2)
Change in unrealized depreciation on available for sale securities(a)		(13)		(2)
Comprehensive income (loss)	$	3	$	(4)

(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 – CREDIT LOSSES

The total reinsurance recoverables as of March 31, 2026 were $41.9 billion. As of that date, utilizing AIG’s Obligor Risk Ratings (ORRs), (i) approximately 82 percent of the reinsurance recoverables were investment grade; (ii) approximately 15 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, 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; (iii) approximately 3 percent of the reinsurance recoverables related to entities that were not rated by AIG.

As of March 31, 2026 and December 31, 2025, approximately 87 percent and 87 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.

For additional information, see Note 8 to the Consolidated Financial Statements in the 2025 Annual Report.

Reinsurance Recoverable Allowance

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


Three Months Ended March 31,

(in millions)		2026		2025
Balance, beginning of year	$	297	$	269
Addition to (release of) allowance for expected credit losses and disputes, net		(1)		3
Write-offs charged against the allowance for credit losses and disputes		(1)		—

Other changes		—		7
Balance, end of year	$	295	$	279

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.


28			AIG \| First Quarter 2026 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 8. Deferred Policy Acquisition Costs

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:


Three Months Ended March 31,
(in millions)	2026		2025
Balance, beginning of year	$	2,106	$	2,065
Capitalization	881		750
Amortization expense	(824)		(825)
Other, including foreign exchange	(35)		19



Balance, end of period	$	2,128	$	2,009

Variable Interest Entities

We enter into various arrangements with Variable Interest Entities (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.

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
March 31, 2026
Real estate and investment entities(a)	$	409,969	$	2,929	$	1,325	(d)	$	4,254
Other(b)		4,761		158		297	(e)		455
Total	$	414,730	$	3,087	$	1,622		$	4,709
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

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

(b)At March 31, 2026 and December 31, 2025, excludes approximately $1.0 billion and $1.1 billion, respectively, of VIE assets related to AIGFP and its consolidated subsidiaries, with maximum off-balance sheet exposure to loss of $982 million and $1.1 billion, respectively. For additional information, see Note 7 to the Consolidated Financial Statements in the 2025 Annual Report.

(c)At March 31, 2026 and December 31, 2025, $3.1 billion and $3.3 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.


AIG \| First Quarter 2026 Form 10-Q			29

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

(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.

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, credit default swaps (CDSs), total return swaps and purchases of investments with embedded derivatives, such as equity-linked notes and convertible bonds.

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


	March 31, 2026								December 31, 2025
	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	$	547	$	25	$	1,087	$	86	$	206	$	21	$	1,438	$	88
Derivatives not designated as hedging instruments:(a)
Interest rate contracts		920		218		996		248		935		227		1,012		258
Foreign exchange contracts		2,113		71		1,760		53		1,154		64		2,576		93


Credit contracts(b)		42		25		47		25		42		26		47		26

Total derivatives, gross	$	3,622	$	339	$	3,890	$	412	$	2,337	$	338	$	5,073	$	465
Counterparty netting(c)				(143)				(143)				(164)				(164)
Cash collateral(d)				(196)				(175)				(169)				(212)
Total derivatives on Condensed Consolidated Balance Sheets(e)			$	—			$	94			$	5			$	89

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

(b)As of March 31, 2026 and December 31, 2025, included CDSs on super senior multi-sector CLO with a net notional amount of $38 million and $38 million (fair value liability of $25 million and $25 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 March 31, 2026 and $3.0 billion at December 31, 2025. Fair value of liabilities related to bifurcated embedded derivatives was zero at both March 31, 2026 and December 31, 2025. A bifurcated embedded derivative is generally presented with the host contract in the Condensed Consolidated Balance Sheets. Embedded derivatives are primarily related to the funds withheld arrangement with Fortitude Re. For additional information, see Note 7.

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


30			AIG \| First Quarter 2026 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 10. Derivatives and Hedge Accounting

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 $298 million and $362 million at March 31, 2026 and December 31, 2025, 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 $228 million and $222 million at March 31, 2026 and December 31, 2025, 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 Condensed 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 three months ended March 31, 2026 and 2025, we recognized gains (losses) of $28 million and $(71) 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.

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


	Gains/(Losses) Recognized in Income for:
(in millions)	Hedging Derivatives(a)		Excluded Components(b)		Hedged Items		Net Impact












Three Months Ended March 31, 2026



Foreign exchange contracts:
Net realized gains/(losses)	$	(14)	$	12	$	14	$	12
Three Months Ended March 31, 2025



Foreign exchange contracts:
Net realized gains/(losses)	$	(1)	$	(1)	$	1	$	(1)

(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.


AIG \| First Quarter 2026 Form 10-Q			31

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 10. Derivatives and Hedge Accounting

DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

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


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

(in millions)	2026		2025
By Derivative Type:
Interest rate contracts	$	1	$	(1)
Foreign exchange contracts	5		(33)




Embedded derivatives	10		(41)
Total	$	16	$	(75)
By Classification:


Net realized gains (losses) - excluding Fortitude Re funds withheld assets	$	2	$	(28)
Net realized gains (losses) on Fortitude Re funds withheld assets*	14		(47)
Total	$	16	$	(75)

*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 March 31, 2026, 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 $25 million at March 31, 2026 and December 31, 2025, respectively. The aggregate fair value of assets posted as collateral under these contracts at March 31, 2026 and December 31, 2025, was approximately $25 million and $25 million, respectively.

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 $14.0 billion and $13.8 billion at March 31, 2026 and December 31, 2025, 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 March 31, 2026 and December 31, 2025 we held collateral of approximately $10.0 billion and $9.6 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements. Allowance for credit losses for the unsecured portion of these recoverable amounts was $14 million at both March 31, 2026 and December 31, 2025.


32			AIG \| First Quarter 2026 Form 10-Q

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

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


Three Months Ended March 31,

(in millions)	2026		2025
Liability for unpaid loss and loss adjustment expenses, beginning of year	$	70,666	$	69,168
Reinsurance recoverable	(28,871)		(29,026)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year	41,795		40,142
Losses and loss adjustment expenses incurred:
Current year	3,661		3,809
Prior years, excluding discount and amortization of deferred gain	(126)		(33)
Prior years, discount charge (benefit)	(25)		40
Prior years, amortization of deferred gain on retroactive reinsurance(a)	(35)		(22)
Total losses and loss adjustment expenses incurred	3,475		3,794
Losses and loss adjustment expenses paid:
Current year	(480)		(429)
Prior years	(2,853)		(2,961)
Total losses and loss adjustment expenses paid	(3,333)		(3,390)
Other changes:
Foreign exchange effect	(194)		484

Losses and loss adjustment expenses recognized within net (gain) loss on divestitures	4		32
Retroactive reinsurance adjustment (net of discount)(b)	18		35


Total other changes	(172)		551
Liability for unpaid loss and loss adjustment expenses, end of period:
Net liability for unpaid losses and loss adjustment expenses	41,765		41,097
Reinsurance recoverable	28,198		27,799
Total	$	69,963	$	68,896

(a)Includes $15 million and $5 million for the retroactive reinsurance agreement with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway Inc. (Berkshire), covering U.S. asbestos exposures for the three months ended March 31, 2026 and 2025, respectively.

(b)Includes benefit (charge) from change in discount on retroactive reinsurance of $53 million and $1 million for the three months ended March 31, 2026 and 2025, respectively.

On January 20, 2017, we entered into an adverse development reinsurance agreement with NICO, under which we transferred to NICO 80 percent of the reserve risk on substantially all of our U.S. commercial long-tail exposures for accident years 2015 and prior. Under this agreement, we ceded to NICO 80 percent of the paid 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. At NICO’s 80 percent share, NICO’s limit of liability under the contract is $20 billion. We account for this transaction as retroactive reinsurance. We paid total consideration, including interest, of $10.2 billion. The consideration was placed into a collateral trust account as security for NICO’s claim payment obligations, and Berkshire has provided a parental guarantee to secure the obligations of NICO under the agreement.

Prior Year Development

During the three months ended March 31, 2026, we recognized favorable prior year loss reserve development of $126 million, net of external reinsurance but before adverse development reinsurance agreement (ADC) cessions. The development in this period was largely driven by favorable experience in U.S Property and U.S. Personal Insurance.

During the three months ended March 31, 2025, we recognized favorable prior year loss reserve development of $33 million, net of external reinsurance but before ADC cessions. The development in this period was largely driven by favorable development in U.S. Property and Global Specialty.

Discounting of Loss Reserves

At March 31, 2026 and December 31, 2025, the loss reserves reflect a net loss reserve discount of $1.3 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 March 31, 2026 and December 31, 2025.


AIG \| First Quarter 2026 Form 10-Q			33

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

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 March 31, 2026 and December 31, 2025, the discount consists of $149 million and $141 million of tabular discount, respectively, and $1.1 billion and $1.0 billion of non-tabular discount for workers’ compensation, respectively. During the three months ended March 31, 2026 and 2025, the benefit / (charge) from changes in discount of $48 million and $(17) million, respectively, were recorded as part of Losses and loss adjustment expenses incurred in the Condensed Consolidated Statements of Income (Loss).

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


(in millions)		March 31, 2026		December 31, 2025
U.S. workers' compensation	$	2,111	$	2,063
Retroactive reinsurance		(838)		(891)
Total reserve discount(a)(b)	$	1,273	$	1,172

(a)Excludes $162 million and $166 million of discount related to certain long-tail liabilities in the UK at March 31, 2026 and December 31, 2025, respectively.

(b)Includes gross discount of $686 million and $693 million, which was 100 percent ceded to Fortitude Re at March 31, 2026 and December 31, 2025, respectively.

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


Three Months Ended March 31,

(in millions)		2026		2025
Current accident year	$	23	$	23
Accretion and other adjustments to prior year discount		25		(40)

Net reserve discount benefit (charge)		48		(17)
Change in discount on loss reserves ceded under retroactive reinsurance		53		1
Net change in total reserve discount*	$	101	$	(16)

*Excludes $(4) million and $6 million of discount related to certain long-tail liabilities in the UK for the three months ended March 31, 2026 and 2025, respectively.

Amortization of Deferred Gain on Retroactive Reinsurance

Amortization of the deferred gain on retroactive reinsurance includes $20 million and $17 million related to the adverse development reinsurance cover with NICO for the three months ended March 31, 2026 and 2025, respectively.

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

FUTURE POLICY BENEFITS

Future policy benefits primarily include reserves for certain long-duration contracts that are 100 percent ceded of $727 million and $797 million at March 31, 2026 and December 31, 2025, respectively, certain other long-duration contracts of $554 million and $583 million at March 31, 2026 and December 31, 2025, respectively, and Global Accident & Health contracts.

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.


34			AIG \| First Quarter 2026 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 12. Contingencies, Commitments and Guarantees

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.

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.

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 $1.4 billion and $1.5 billion at March 31, 2026 and December 31, 2025, 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 March 31, 2026, a $73 million guarantee related to the obligations of AIGFP and certain of its subsidiaries was recognized, and is reported in Other liabilities.

We 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.

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.


AIG \| First Quarter 2026 Form 10-Q			35

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 12. Contingencies, Commitments and Guarantees

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 Condensed Consolidated Balance Sheets.

Other

*•*For additional information on commitments and guarantees associated with VIEs, see Note 9.

*•*For additional information on derivatives, see Note 10.

Equity

SHARES OUTSTANDING

Common Stock

The following table presents a rollforward of outstanding shares:



Three Months Ended March 31, 2026	Common Stock Issued	Treasury Stock	Common Stock Outstanding
(in millions)
Shares, beginning of year	1,906.7	(1,368.5)	538.2
Shares issued	—	1.4	1.4
Shares repurchased	—	(6.7)	(6.7)
Shares, end of period	1,906.7	(1,373.8)	532.9

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 (the Board) 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.

For a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries, see Note 18 to the Consolidated Financial Statements in the 2025 Annual Report.

Repurchase of AIG Common Stock

The Board has authorized the repurchase of shares of AIG Common Stock and as of April 24, 2026, $3.2 billion remained under the Board's authorization. Shares may be repurchased from time to time in the open market, through private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or through Rule 10b5-1 plans under the Securities Exchange Act of 1934, as amended (the Exchange Act). Pursuant to a Rule 10b5-1 plan, from April 1, 2026 to April 24, 2026, we repurchased approximately 3 million shares of AIG Common Stock for an aggregate purchase price of approximately $209 million.

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.

DIVIDENDS DECLARED

On April 30, 2026, our Board of Directors declared a cash dividend on AIG Common Stock of $0.50 per share, an 11 percent increase from prior quarterly dividends on AIG Common Stock, payable on June 29, 2026 to shareholders of record as of June 15, 2026.


36			AIG \| First Quarter 2026 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 13. Equity

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 the discount rates used to measure traditional and limited payment long-duration insurance contracts		Foreign Currency Translation Adjustments		Retirement Plan Liabilities Adjustment			Total
Balance, December 31, 2025, net of tax	$	(3)	$	(1,373)		$	87	$	(2,981)	$	(717)		$	(4,987)
Change in unrealized appreciation (depreciation) of investments		(1)		(734)			—		—		—			(735)
Change in other		—		(3)			—		—		—			(3)

Change in discount rates		—		—			5		—		—			5

Change in foreign currency translation adjustments		—		—			—		(119)		—			(119)
Change in net actuarial loss		—		—			—		—		7			7
Change in prior service cost		—		—			—		—		1			1
Change in deferred tax asset (liability)		—		121			(1)		(2)		(2)			116


Total other comprehensive income (loss)		(1)		(616)			4		(121)		6			(728)


Balance, March 31, 2026, net of tax	$	(4)	$	(1,989)		$	91	$	(3,102)	$	(711)		$	(5,715)



Balance, December 31, 2024, net of tax	$	(4)	$	(2,868)	$	68	$	(3,521)	$	(774)	$	(7,099)
Change in unrealized appreciation (depreciation) of investments		4		318		—		—		—		322
Change in other		—		6		—		—		—		6

Change in discount rates		—		—		9		—		—		9

Change in foreign currency translation adjustments		—		—		—		175		—		175
Change in net actuarial loss		—		—		—		—		8		8

Change in deferred tax asset (liability)		—		101		(3)		19		(1)		116


Total other comprehensive income		4		425		6		194		7		636

Less: Noncontrolling interests		—		—		—		1		—		1
Balance, March 31, 2025, net of tax	$	—	$	(2,443)	$	74	$	(3,328)	$	(767)	$	(6,464)

The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended March 31, 2026 and 2025**, 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 the discount rates used to measure traditional and limited payment long-duration insurance contracts		Foreign Currency Translation Adjustments		Retirement Plan Liabilities Adjustment			Total
Three Months Ended March 31, 2026
Unrealized change arising during period	$	(1)	$	(867)		$	5	$	(119)	$	—		$	(982)
Less: Reclassification adjustments included in net income		—		(130)			—		—		(8)			(138)
Total other comprehensive income (loss), before of income tax expense (benefit)		(1)		(737)			5		(119)		8			(844)
Less: Income tax expense (benefit)		—		(121)			1		2		2			(116)
Total other comprehensive income (loss), net of income tax expense (benefit)	$	(1)	$	(616)		$	4	$	(121)	$	6		$	(728)


Three Months Ended March 31, 2025
Unrealized change arising during period	$	4	$	62		$	9	$	175	$	—		$	250
Less: Reclassification adjustments included in net income		—		(262)			—		—		(8)			(270)
Total other comprehensive income (loss), before income tax expense (benefit)		4		324			9		175		8			520
Less: Income tax expense (benefit)		—		(101)			3		(19)		1			(116)
Total other comprehensive income (loss), net of income tax expense (benefit)	$	4	$	425		$	6	$	194	$	7		$	636


AIG \| First Quarter 2026 Form 10-Q			37

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 13. Equity

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


	Amount Reclassified from AOCI				Affected Line Item in the















	Three Months Ended March 31,				Condensed Consolidated
(in millions)		2026		2025		Statements of Income (Loss)
Unrealized appreciation (depreciation) of fixed maturity securities on which allowance for credit losses was taken
Investments	$	—	$	—		Net realized gains (losses)
Total		—		—
Unrealized appreciation (depreciation) of all other investments
Investments		(130)		(262)		Net realized gains (losses)
Total		(130)		(262)
Change in retirement plan liabilities adjustment
Prior-service credit		(1)		(1)		(b)
Actuarial losses		(7)		(7)		(b)
Total		(8)		(8)

Total reclassifications for the period	$	(138)	$	(270)

(a)Change in the discount rates used to measure traditional and limited-payment long-duration insurance contracts is not reclassified out of AOCI and included in the Condensed Consolidated Statements of Income (Loss) and thus have been excluded from the table.

(b)These AOCI components are included in the computation of net periodic pension cost.

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:


Three Months Ended March 31,

(dollars in millions, except per common share data)	2026		2025
Numerator for EPS:
Net income	$	763	$	698
Less: Net income attributable to noncontrolling interests	—		—

Net income (loss) attributable to AIG common shareholders	763		698





Denominator for EPS:
Weighted average common shares outstanding - basic	538,053,962		593,839,665
Dilutive common shares	4,106,994		5,400,381
Weighted average common shares outstanding - diluted(a)	542,160,956		599,240,046
Net income (loss) per common share attributable to AIG common shareholders:



Basic	$	1.42	$	1.18



Diluted	$	1.41	$	1.16

(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 653,677 and 161,754 for the three months ended March 31, 2026 and 2025, 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 13.

Income Taxes

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.


38			AIG \| First Quarter 2026 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 15. Income Taxes

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.

INTERIM TAX CALCULATION METHOD

We use the estimated annual effective tax rate method in computing our interim tax provision. Certain items, including those deemed to be unusual, infrequent or that cannot be reliably estimated, are excluded from the estimated annual effective tax rate. In these cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax rate, primarily certain changes in uncertain tax positions and realizability of deferred tax assets and are recorded in the period in which the change occurs.

INTERIM TAX EXPENSE (BENEFIT)

For the three months ended March 31, 2026, the effective tax rate on income was 22.7 percent. The effective tax rate on income differs from the statutory tax rate of 21 percent primarily due to tax charges associated with the effect of foreign operations, certain non-deductible expenses, and state and local income taxes. The charges are partially offset by the impact of excess tax benefits related to share-based compensation payments recorded through the income statement. The effect of foreign operations is primarily related to income of our foreign operations taxed at statutory tax rates higher than 21 percent, other foreign taxes, and foreign income subject to U.S. taxation.

For the three months ended March 31, 2025, the effective tax rate on income was 27.3 percent. The effective tax rate on income differs from the statutory tax rate of 21 percent primarily due to tax charges associated with the effect of foreign operations, certain non-deductible expenses and state and local income taxes, partially offset by tax benefits related to closure of tax audits in Germany and California, and excess tax benefits related to share-based compensation payments recorded through the income statement. The effect of foreign operations is primarily related to income of our foreign operations taxed at statutory tax rates higher than 21 percent, other foreign taxes, and foreign income subject to U.S. taxation.

ASSESSMENT OF DEFERRED TAX ASSET VALUATION ALLOWANCE

For the three months ended March 31, 2026, 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 an increase 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 March 31, 2026, based on all available evidence, we concluded that a valuation allowance of $249 million is necessary on deferred tax assets related to unrealized tax capital losses that are not more-likely-than-not to be realized. For the three months ended March 31, 2026, we recorded an increase in valuation allowance of $49 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 three months ended March 31, 2026, we recognized a net $5 million decrease in deferred tax asset valuation allowance associated with certain foreign jurisdictions, and established a state valuation allowance of $88 million related to the initial recognition and corresponding increase in NYS net operating loss deferred tax asset as a result of the completion of NYS audit activity.

TAX EXAMINATIONS

We are currently under examination by the Internal Revenue Service (IRS) for the tax years 2011 through 2019. We continue to engage in the IRS Appeals process for certain disagreed issues related to tax years 2007 through 2010. These tax years are still subject to ongoing computational review by IRS Appeals.

ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

There were no significant changes in our unrecognized tax benefits, interest and penalties for the three months ended March 31, 2026.


AIG \| First Quarter 2026 Form 10-Q			39

ITEM 2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations

Glossary and Acronyms of Selected Insurance Terms and References

Throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A), we use certain terms and abbreviations, which are summarized in the Glossary and Acronyms.

This discussion contains a number of cross-references to additional information included throughout this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2025 (the 2025 Annual Report) to assist readers seeking additional information related to a particular subject.

In this Quarterly Report on Form 10-Q, unless the context indicates otherwise, we use the terms “AIG,” “we,” “us,” “our” or "the Company" to refer to American International Group, Inc., a Delaware corporation, and its consolidated subsidiaries. We use the term “AIG Parent” to refer solely to American International Group, Inc., and not to any of its consolidated subsidiaries.

Cautionary Note on Forward-Looking Statements

This Quarterly Report on Form 10-Q and other publicly available documents may include, and members of management may from time to time make and discuss, statements which, to the extent they are not statements of historical or present fact, may constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward‑looking statements are intended to provide management’s current expectations or plans for future operating and financial performance, based on assumptions currently believed to be valid and accurate. Forward-looking statements are often preceded by, followed by or include words such as “will,” “believe,” “anticipate,” “expect,” “expectations,” “intend,” "strive," “plan,” “strategy,” “prospects,” “project,” “anticipate,” “should,” “guidance,” “outlook,” “view,” “target,” “goal,” “estimate” and other words of similar meaning in connection with a discussion of future operating or financial performance. These statements may include, among other things, projections, goals and assumptions that relate to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expense reduction efforts, the outcome of contingencies such as legal proceedings, anticipated organizational, business or regulatory changes, the effect of catastrophic events, both natural and man-made, and macroeconomic and/or geopolitical events, anticipated dispositions, monetization and/or acquisitions of businesses or assets, the successful integration of acquired businesses, management succession and retention plans, exposure to risk, trends in operations and financial results, and other statements that are not historical facts.


40			AIG \| First Quarter 2026 Form 10-Q

All forward-looking statements involve risks, uncertainties and other factors that may cause actual results and financial condition to differ, possibly materially, from the results and financial condition expressed or implied in the forward-looking statements. Factors that could cause actual results to differ, possibly materially, from those in specific projections, targets, goals, plans, assumptions and other forward-looking statements include, without limitation:

the impact of adverse developments affecting economic conditions in the markets in which we operate, including financial market conditions, a U.S. federal government shutdown, macroeconomic trends, changes in trade policies, including tariffs, fluctuations in interest rates and foreign currency exchange rates, inflationary pressures, including social inflation, pressures on the commercial real estate market, pandemics, and geopolitical events or conflicts;
the occurrence of catastrophic events, both natural and man-made, which may be exacerbated by the effects of climate change;
disruptions in the availability or accessibility of our or a third party’s information technology systems, including hardware and software, infrastructure or networks, and the inability to safeguard the confidentiality and integrity of customer, employee or company data due to cyberattacks, data security breaches or infrastructure vulnerabilities;
our ability to effectively implement technological advancements, including the use of artificial intelligence (AI), and respond to competitors' AI and other technology initiatives;
our ability to successfully complete strategic transactions, including to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired businesses, and the anticipated benefits thereof;
the effects of changes in laws and regulations, including those relating to privacy, data protection, cybersecurity and AI, and the regulation of insurance, in the U.S. and other countries in which we operate;
concentrations in our investment portfolios;
changes in the valuation of our investments;
our reliance on third-party investment managers;
nonperformance or defaults by counterparties;
our reliance on third parties to provide certain business and administrative services;
our ability to adequately assess risk and estimate related losses as well as the effectiveness of our enterprise risk management policies and procedures;
changes in judgments or assumptions concerning insurance underwriting and insurance liabilities;
concentrations of our insurance, reinsurance and other risk exposures;
availability of adequate reinsurance or access to reinsurance on acceptable terms;
changes to tax laws in the countries in which we operate;
the effectiveness of strategies to retain and recruit key personnel and to implement effective succession plans;
the effects of sanctions and the failure to comply with those sanctions;
difficulty in marketing and distributing products through current and future distribution channels;
actions by rating agencies with respect to our credit and financial strength ratings as well as those of its businesses and subsidiaries;
changes in judgments concerning the recognition of deferred tax assets and the impairment of goodwill;
our ability to address evolving global stakeholder expectations and regulatory requirements including with respect to environmental, social and governance matters and to effectively execute on sustainability targets and standards;
our ability to effectively implement restructuring initiatives and potential cost-savings opportunities;
changes to sources of or access to liquidity;
changes in accounting principles and financial reporting requirements or their applicability to us;
the outcome of significant legal, regulatory or governmental proceedings; and
such other factors discussed in:

–Part I, Item 2. MD&A of this Quarterly Report on Form 10-Q;

–Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A of the 2025 Annual Report; and

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

Forward-looking statements speak only as of the date of this report, or in the case of any document incorporated by reference, the date of that document. We are not under any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional information as to factors that may cause actual results to differ materially from those expressed or implied in any forward-looking statements is disclosed from time to time in other filings with the SEC.


AIG \| First Quarter 2026 Form 10-Q			41


INDEX TO ITEM 2
			Page
Executive Summary			43
Overview			43

Operating Structure			43
Critical Accounting Estimates			44
Consolidated Results of Operations			44
Business Segment Operations			45
General Insurance			45
Other Operations			49
Use of Non-GAAP Measures			50
Investments			53
Overview			53
Investment Highlights in the Three Months Ended March 31, 2026			53
Investment Strategies			54
Credit Ratings			58
Insurance Reserves			59
Loss Reserves			59
Liquidity and Capital Resources			62
Overview			62
Liquidity and Capital Resources Highlights			63
Analysis of Sources and Uses of Cash			63
Liquidity and Capital Resources of AIG Parent and Subsidiaries			64
Credit Facilities			64
Contractual Obligations			64
Off-Balance Sheet Arrangements and Commercial Commitments			64
Debt			65
Financial Strength Ratings			65
Credit Ratings			66
Regulation and Supervision			66
Dividends			66
Repurchases of AIG Common Stock			66
Enterprise Risk Management			67







Glossary			68
Acronyms			70


42			AIG \| First Quarter 2026 Form 10-Q

ITEM 2 | Executive Summary

Executive Summary

OVERVIEW

This overview of the MD&A highlights selected information and may not contain all of the information that is important to current or potential investors in our securities. You should read this Quarterly Report on Form 10-Q, together with the 2025 Annual Report, in their entirety for a more detailed description of events, trends, uncertainties, risks and critical accounting estimates affecting us.

OPERATING STRUCTURE

We report the results of our businesses through three segments and Other Operations. The three segments are North America Commercial, International Commercial and Global Personal. Other Operations predominantly consists of Net investment income from our AIG Parent liquidity portfolio, Corebridge Financial, Inc. (Corebridge) dividend income, corporate General operating expenses, and Interest expense. Our general insurance business (General Insurance) consists of our three segments and the Net investment income and Amortization of intangible assets including renewal rights related to our insurance operations.

General Insurance includes the following major operating companies: National Union Fire Insurance Company of Pittsburgh, Pa. (National Union); American Home Assurance Company (American Home); Lexington Insurance Company (Lexington); AIG General Insurance Company, Ltd.; AIG Asia Pacific Insurance Pte. Ltd.; AIG Europe S.A.; American International Group UK Limited; Talbot Underwriting Ltd. (Talbot); Western World Insurance Company and Glatfelter Insurance Group (Glatfelter).

Commercial Lines Products

Property & Short Tail: Products include commercial and industrial property, including business interruption, as well as package insurance products and services that cover exposures to man-made and natural disasters.

Casualty: Products include general liability, environmental, commercial automobile liability, workers’ compensation, excess casualty and crisis management insurance products. Casualty also includes risk-sharing and other customized structured programs for large corporate and multinational customers.

Financial Lines: Products include professional liability insurance for a range of businesses and risks, including directors and officers, mergers and acquisitions, fidelity, employment practices, fiduciary liability, cyber risk, kidnap and ransom, and errors and omissions insurance.

Global Specialty: Products include marine, energy-related property insurance products, aviation, political risk, trade credit and trade finance.

Personal Insurance Products

Global Accident & Health: Products include group personal accident and business travel products for employees, associations and other organizations, and voluntary and sponsor-paid personal accident and supplemental health products for individuals.

Personal Lines: Products include personal auto and homeowners in selected markets, comprehensive extended warranty, device protection insurance, home warranty and related services, and insurance for high net-worth individuals offered through Private Client Select (PCS) in the U.S. that covers auto, homeowners, umbrella, yacht, fine art and collections.

Competition

General Insurance operates in a highly competitive industry against global, national and local insurers and reinsurers and underwriting syndicates in specific market areas and product types. Insurance companies compete through a combination of risk acceptance criteria, product pricing, service levels and terms and conditions. General Insurance seeks to differentiate itself in the markets where we participate by providing leading expertise and insight to clients, distribution partners and other stakeholders, delivering underwriting excellence and value-driven insurance solutions and providing high quality, tailored end-to-end support to stakeholders. In doing so, we leverage our world-class global franchise, multinational capabilities, balance sheet strength and financial flexibility.

For additional information on our segments, see Note 3 to the Condensed Consolidated Financial Statements.


AIG \| First Quarter 2026 Form 10-Q			43

ITEM 2 | Critical Accounting Estimates

Critical Accounting Estimates

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


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

•loss reserves; •reinsurance assets; •fair value measurements of certain financial assets and financial liabilities; and •income taxes, in particular the recoverability of our deferred tax asset and establishment of provisions for uncertain tax positions.

For a detailed discussion of our critical accounting estimates, see Part II, Item 7. MD&A – Critical Accounting Estimates in the 2025 Annual Report.

Consolidated Results of Operations

The following section provides a comparative discussion of our consolidated results of operations on a reported basis for the three months ended March 31, 2026 and 2025. Factors that relate primarily to a specific business are discussed in more detail within the business segment operations section.

For information regarding the critical accounting estimates that affect our results of operations, see Critical Accounting Estimates in this MD&A and Part II, Item 7. MD&A – Critical Accounting Estimates in the 2025 Annual Report.

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


Three Months Ended March 31,					Percentage

(in millions)	2026		2025		Change

Revenues:
Premiums	$	6,072	$	5,770	5	%
Net investment income:
Net investment income - excluding Fortitude Re funds withheld assets	689		1,065		(35)
Net investment income - Fortitude Re funds withheld assets	23		40		(43)
Total net investment income	712		1,105		(36)
Net realized gains (losses):
Net realized losses - excluding Fortitude Re funds withheld assets and embedded derivative	(132)		(60)		(120)
Net realized losses on Fortitude Re funds withheld assets	(13)		(2)		NM
Net realized gains (losses) on Fortitude Re funds withheld embedded derivative	10		(41)		NM
Total net realized losses	(135)		(103)		(31)
Other income	1		11		(91)
Total revenues	6,650		6,783		(2)
Benefits, losses and expenses:
Losses and loss adjustment expenses incurred	3,475		3,794		(8)
Amortization of deferred policy acquisition costs	824		825		—
General operating and other expenses	1,137		1,115		2
Interest expense	100		92		9

Net (gain) loss on divestitures and other	127		(3)		NM
Total benefits, losses and expenses	5,663		5,823		(3)


44			AIG \| First Quarter 2026 Form 10-Q

ITEM 2 | Consolidated Results of Operations


Three Months Ended March 31,					Percentage

(in millions)	2026		2025		Change

Income before income tax expense	987		960		3



Income tax expense	224		262		(15)


Net income	763		698		9
Less: Net income attributable to noncontrolling interests	—		—		NM


Net income attributable to AIG common shareholders	$	763	$	698	9	%

NET INCOME (LOSS) ATTRIBUTABLE TO AIG COMMON SHAREHOLDERS

Three Months Ended March 31, 2026 and 2025 Comparison

Net income (loss) attributable to AIG common shareholders increased $65 million primarily driven by:

higher underwriting income primarily driven by lower catastrophe losses of $345 million and higher net favorable prior year reserve development of $68 million. For additional information, see Business Segment Operations – General Insurance; and
lower Net investment income of $393 million primarily due to changes in the fair value of AIG's investments in Corebridge and Equity securities of $449 million and lower income on Alternative investments and Mortgage loans of $48 million, partially offset by higher income from available for sale fixed maturity securities of $103 million. For additional information, see Note 5 to the Condensed Consolidated Financial Statements.

Business Segment Operations


General Insurance

General Insurance consists of our three segments and the Net investment income and Amortization of intangible assets including renewal rights related to our insurance operations.


GENERAL INSURANCE


Three Months Ended March 31,

(in millions)		2026		2025	Change
Underwriting results:
Net premiums written	$	5,599	$	4,526	24	%
Net premiums written, on constant dollar basis					18
(Increase) decrease in unearned premiums		453		1,243	(64)
Net premiums earned		6,052		5,769	5
Losses and loss adjustment expenses incurred(a)		3,509		3,766	(7)
Acquisition expenses:
Amortization of deferred policy acquisition costs		818		825	(1)
Other acquisition expenses		233		232	—
Total acquisition expenses		1,051		1,057	(1)
General operating expenses		718		703	2
Underwriting income		774		243	219
Net investment income		864		736	17
Amortization of intangible assets including renewal rights(b)		(10)		(4)	(150)
Adjusted pre-tax income	$	1,628	$	975	67	%


AIG \| First Quarter 2026 Form 10-Q			45

ITEM 2 | Business Segment Operations | General Insurance


Three Months Ended March 31,

(in millions)	2026	2025	Change
Loss ratio(a)	58.0	65.3	(7.3)
Acquisition ratio	17.4	18.3	(0.9)
General operating expense ratio	11.9	12.2	(0.3)
Expense ratio	29.3	30.5	(1.2)
Combined ratio(a)	87.3	95.8	(8.5)
Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:
Catastrophe losses and reinstatement premiums	(3.0)	(9.1)	6.1
Prior year development, net of prior year premiums	2.3	1.1	1.2
Accident year loss ratio, as adjusted	57.3	57.3	—
Accident year combined ratio, as adjusted	86.6	87.8	(1.2)

(a)Consistent with our definition of APTI, excludes net loss reserve discount and the portion of favorable or unfavorable prior year reserve development for which we have ceded the risk under retroactive reinsurance agreements and related changes in amortization of the deferred gain.

(b)In the first quarter of 2026, AIG realigned and began reporting Amortization of intangible assets in General Insurance from Other Operations; historical results have been recast to reflect these changes.

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


(dollars in millions)	North America Commercial		International Commercial		Global Personal		Total
Three Months Ended March 31, 2026
















Flooding, rainstorms and other	$	—	$	27	$	1	$	28
Windstorms and hailstorms	—		16		—		16
Winter storms	108		1		27		136




Total catastrophe-related charges	$	108	$	44	$	28	$	180
Three Months Ended March 31, 2025

Windstorms and hailstorms	$	25	$	1	$	2	$	28
Winter storms	12		—		—		12
Wildfires	216		50		194		460
Earthquakes	—		20		—		20
Reinstatement premiums	5		(1)		1		5
Total catastrophe-related charges	$	258	$	70	$	197	$	525

(a)Natural catastrophe losses are generally weather or seismic events, in each case, having a net impact on AIG in excess of $10 million and man-made catastrophe losses, such as terrorism and civil unrest that exceed the $10 million threshold.

NORTH AMERICA COMMERCIAL

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


Three Months Ended March 31,

(in millions)	2026		2025		Change
Underwriting results:
Net premiums written	$	1,605	$	1,174	37	%
Net premiums written, on constant dollar basis					36
(Increase) decrease in unearned premiums	648		950		(32)
Net premiums earned	2,253		2,124		6
Losses and loss adjustment expenses incurred(a)	1,421		1,526		(7)
Acquisition expenses:
Amortization of deferred policy acquisition costs	213		227		(6)
Other acquisition expenses	68		47		45
Total acquisition expenses	281		274		3
General operating expenses	224		195		15
Underwriting income	$	327	$	129	153	%
Loss ratio(a)	63.1		71.8		(8.7)


46			AIG \| First Quarter 2026 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance


Three Months Ended March 31,

(in millions)	2026	2025	Change
Acquisition ratio	12.5	12.9	(0.4)
General operating expense ratio	9.9	9.2	0.7
Expense ratio	22.4	22.1	0.3
Combined ratio(a)	85.5	93.9	(8.4)
Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:
Catastrophe losses and reinstatement premiums	(4.8)	(12.0)	7.2
Prior year development, net of prior year premiums	4.8	2.4	2.4

Accident year loss ratio, as adjusted	63.1	62.2	0.9
Accident year combined ratio, as adjusted	85.5	84.3	1.2

Premiums Three Months Ended March 31, 2026 and 2025 Comparison

Net premiums written increased by $431 million, or 37 percent, primarily due to the impact of strategic transactions, reinsurance program changes and organic growth, notably in Casualty and Property. The increase in Net premiums earned is primarily driven by business growth.

Underwriting Results Three Months Ended March 31, 2026 and 2025 Comparison

North America Commercial produced underwriting income of $327 million from a combined ratio of 85.5, which was an 8.4 point improvement. This was driven by a lower loss ratio (8.7 points) from:

lower catastrophe losses (7.2 points); and
higher net favorable prior year reserve development (2.4 points), with favorable development driven by Property.

This was partially offset by a higher accident year loss ratio, as adjusted (0.9 points) due to changes in business mix.

The expense ratio increased by 0.3 points, as a lower acquisition ratio (0.4 points) primarily driven by changes in business mix partially offset the increase in the general operating expense ratio (0.7 points).

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

INTERNATIONAL COMMERCIAL

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


Three Months Ended March 31,

(in millions)	2026		2025		Change
Underwriting results:
Net premiums written	$	2,450	$	2,027	21	%
Net premiums written, on constant dollar basis					12
(Increase) decrease in unearned premiums	(263)		24		NM
Net premiums earned	2,187		2,051		7
Losses and loss adjustment expenses incurred	1,246		1,178		6
Acquisition expenses:
Amortization of deferred policy acquisition costs	278		245		13
Other acquisition expenses	85		94		(10)
Total acquisition expenses	363		339		7
General operating expenses	300		294		2
Underwriting income	$	278	$	240	16	%
Loss ratio	57.0		57.4		(0.4)
Acquisition ratio	16.6		16.5		0.1
General operating expense ratio	13.7		14.3		(0.6)
Expense ratio	30.3		30.8		(0.5)
Combined ratio	87.3		88.2		(0.9)


AIG \| First Quarter 2026 Form 10-Q			47

ITEM 2 | Business Segment Operations | General Insurance


Three Months Ended March 31,

(in millions)	2026	2025	Change
Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:
Catastrophe losses and reinstatement premiums	(2.0)	(3.4)	1.4
Prior year development, net of prior year premiums	(0.2)	0.6	(0.8)
Accident year loss ratio, as adjusted	54.8	54.6	0.2
Accident year combined ratio, as adjusted	85.1	85.4	(0.3)

Premiums Three Months Ended March 31, 2026 and 2025 Comparison

Net premiums written, excluding the favorable impact of foreign exchange ($162 million), increased by $261 million, or 12 percent, primarily due to the impact of strategic transactions, reinsurance program changes and organic growth, notably in Property and Casualty. The increase in Net premiums earned is primarily driven by business growth.

Underwriting Results Three Months Ended March 31, 2026 and 2025 Comparison

International Commercial produced underwriting income of $278 million from a combined ratio of 87.3, which was a 0.9 point improvement. This was driven by a lower loss ratio (0.4 points) from lower catastrophe losses (1.4 points), partially offset by:

higher accident year loss ratio, as adjusted (0.2 points) due to changes in business mix; and
net adverse prior year reserve development (0.8 points), driven by prior year premiums.

The expense ratio improved by 0.5 points, as a mix-driven increase in the acquisition ratio (0.1 points) was more than offset by a lower general operating expense ratio (0.6 points).

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

GLOBAL PERSONAL

The Global Personal segment consists primarily of Global Accident & Health and Personal Lines insurance businesses in the United States, Japan, the United Kingdom, EMEA region, Asia Pacific, Latin America and Caribbean, and China. Global Accident & Health products include group personal accident and business travel products for employees, associations and other organizations, and voluntary and sponsor-paid personal accident and supplemental health products for individuals. Personal Lines products include personal auto and homeowners in selected markets, comprehensive extended warranty, device protection insurance, home warranty and related services, and insurance for high net-worth individuals offered through Private Client Select (PCS) in the U.S. that covers auto, homeowners, umbrella, yacht, fine art and collections.


Three Months Ended March 31,

(in millions)	2026		2025		Change
Underwriting results:
Net premiums written	$	1,544	$	1,325	17	%
Net premiums written, on constant dollar basis					11
(Increase) decrease in unearned premiums	68		269		(75)
Net premiums earned	1,612		1,594		1
Losses and loss adjustment expenses incurred	842		1,062		(21)
Acquisition expenses:
Amortization of deferred policy acquisition costs	327		353		(7)
Other acquisition expenses	80		91		(12)
Total acquisition expenses	407		444		(8)
General operating expenses	194		214		(9)
Underwriting income (loss)	$	169	$	(126)	NM	%
Loss ratio	52.2		66.6		(14.4)
Acquisition ratio	25.2		27.9		(2.7)
General operating expense ratio	12.0		13.4		(1.4)
Expense ratio	37.2		41.3		(4.1)
Combined ratio	89.4		107.9		(18.5)
Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:
Catastrophe losses and reinstatement premiums	(1.7)		(12.3)		10.6
Prior year development, net of prior year premiums	2.2		—		2.2
Accident year loss ratio, as adjusted	52.7		54.3		(1.6)
Accident year combined ratio, as adjusted	89.9		95.6		(5.7)


48			AIG \| First Quarter 2026 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance

Premiums Three Months Ended March 31, 2026 and 2025 Comparison

Net premiums written, excluding the favorable impact of foreign exchange ($60 million) increased by $159 million, or 11 percent, primarily driven by reinsurance program changes and organic growth in U.S. high net worth and Accident & Health. The increase in Net premiums earned is primarily driven by these same factors.

Underwriting Results Three Months Ended March 31, 2026 and 2025 Comparison

Global Personal produced underwriting income of $169 million from a combined ratio of 89.4, which was an 18.5 point improvement. This was driven by a lower loss ratio (14.4 points) from:

lower catastrophe losses (10.6 points);
net favorable prior year reserve development (2.2 points), with favorable development driven by U.S. high net worth; and
lower accident year loss ratio, as adjusted (1.6 points) due to changes in business mix.

The expense ratio improved by 4.1 points, reflecting a lower acquisition ratio (2.7 points), primarily driven by changes in business mix and improved commission terms, and a lower general operating expense ratio (1.4 points).

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


Other Operations

Other Operations predominantly consists of Net investment income from our AIG Parent liquidity portfolio, Corebridge dividend income, corporate General operating expenses, and Interest expense.


OTHER OPERATIONS


Three Months Ended March 31,

(in millions)		2026		2025	Change
Net investment income and other	$	54	$	110	(51)	%
Benefits, losses and expenses:
Corporate and other general operating expenses		79		85	(7)

Interest expense		100		91	10
Total benefits, losses and expenses*		179		176	2
Adjusted pre-tax loss before consolidation and eliminations		(125)		(66)	(89)
Consolidation and eliminations		—		—	NM
Adjusted pre-tax loss	$	(125)	$	(66)	(89)	%

*In the first quarter of 2026, AIG realigned and began reporting Amortization of intangible assets in General Insurance from Other Operations; historical results have been recast to reflect these changes.

ADJUSTED PRE-TAX LOSS BEFORE CONSOLIDATION AND ELIMINATIONS

Three Months Ended March 31, 2026 and 2025 Comparison

Adjusted pre-tax loss before consolidation and eliminations increased $59 million primarily due to the following:

lower net investment income and other of $56 million due to lower dividend income from Corebridge of $25 million and lower interest on AIG Parent portfolio as a result of lower balance; and
higher interest expense of $9 million primarily driven by new debt issuance of $1.25 billion in 2025 partially offset by interest savings from $693 million debt repurchases, through cash tender offers and debt redemption in 2025.


AIG \| First Quarter 2026 Form 10-Q			49

ITEM 2 | Use of Non-GAAP Measures

Use of Non-GAAP Measures

Throughout this MD&A, we present our financial condition and results of operations in the way we believe will be most meaningful and representative of our business results. Some of the measurements we use are “non-GAAP financial measures” under SEC rules and regulations. GAAP is the acronym for “generally accepted accounting principles” in the United States. The non-GAAP financial measures we present may not be comparable to similarly-named measures reported by other companies.

We use the following operating performance measures because we believe they enhance the understanding of the underlying profitability of operations and trends of our segments. We believe they also allow for more meaningful comparisons with our insurance competitors. When we use these measures, reconciliations to the most comparable GAAP measure are provided on a consolidated basis in the Consolidated Results of Operations section of this MD&A.

Adjusted pre-tax income (APTI) is derived by excluding the items set forth below from income before income tax:

changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares;
net investment income on Fortitude Re funds withheld assets held by AIG in support of Fortitude Re’s reinsurance obligations to AIG (Fortitude Re funds withheld assets);
net realized gains and losses on Fortitude Re funds withheld assets;
loss (gain) on extinguishment of debt;
all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication. Earned income on such economic hedges is reclassified from net realized gains and losses to specific APTI line items based on the economic risk being hedged (e.g. net investment income);
income or loss from discontinued operations;
net loss reserve discount benefit (charge);
net results of businesses in run-off;
non-operating pension expenses;
net gain or loss on divestitures and other;
non-operating litigation reserves and settlements;
restructuring and other costs related to initiatives designed to reduce operating expenses, improve efficiency and simplify our organization;
the portion of favorable or unfavorable prior year reserve development for which we have ceded the risk under retroactive reinsurance agreements and related changes in amortization of the deferred gain;
integration and transaction costs associated with acquiring or divesting businesses;
losses from the impairment of goodwill; and
non-recurring costs associated with the implementation of non-ordinary course legal or regulatory changes or changes to accounting principles.

Adjusted after-tax income attributable to AIG common shareholders is derived by excluding the tax effected APTI adjustments described above, noncontrolling interest on net realized gains (losses), other non-operating expenses and the following tax items from net income attributable to AIG:

deferred income tax valuation allowance releases and charges; and
changes in uncertain tax positions and other tax items related to legacy matters having no relevance to our current businesses or operating performance.


50			AIG \| First Quarter 2026 Form 10-Q

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