Item 2. Use of Non-GAAP Measures

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Item 2. Use of Non-GAAP Measures

The following table presents a reconciliation of pre-tax income (loss)/net income (loss) attributable to AIG to adjusted pre-tax income (loss)/adjusted after-tax income (loss) attributable to AIG:



Three Months Ended March 31,	2026					2025
(in millions, except per common share data)		Pre-tax	Total Tax (Benefit) Charge		After Tax		Pre-tax	Total Tax (Benefit) Charge			After Tax
Pre-tax income/Net income, including noncontrolling interests	$	987	$	224	$	763	$	960	$	262		$	698
Noncontrolling interests						—							—


Pre-tax income/Net income attributable to AIG common shareholders		987		224		763		960		262			698
Changes in uncertain tax positions and other tax adjustments				93		(93)				6			(6)
Deferred income tax valuation allowance (releases) charges				(83)		83				2			(2)
Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares		237		50		187		(217)		(46)			(171)

Net investment income on Fortitude Re funds withheld assets		(23)		(5)		(18)		(40)		(8)			(32)
Net realized losses on Fortitude Re funds withheld assets		13		3		10		2		—			2
Net realized (gains) losses on Fortitude Re funds withheld embedded derivative		(10)		(2)		(8)		41		9			32
Net realized losses(a)		136		43		93		66		(38)			104

Net (gain) loss on divestitures and other(b)		127		27		100		(3)		(1)			(2)
Non-operating litigation reserves and settlements		—		—		—		(11)		(2)			(9)
Unfavorable (favorable) prior year development and related amortization changes ceded under retroactive reinsurance agreements		(8)		(2)		(6)		9		2			7
Net loss reserve discount (benefit) charge		(48)		(10)		(38)		17		3			14
Net results of businesses in run-off(c)		5		1		4		(5)		(1)			(4)
Non-operating pension expenses		(1)		—		(1)		5		1			4
Integration and transaction costs associated with acquiring or divesting businesses		7		1		6		5		1			4
Restructuring and other costs		76		16		60		76		16			60
Non-recurring costs related to regulatory or accounting changes		5		1		4		4		1			3


Adjusted pre-tax income (loss)/Adjusted after-tax income (loss) attributable to AIG common shareholders	$	1,503	$	357	$	1,146	$	909	$	207		$	702
Weighted average diluted shares outstanding						542.2							599.2
Income per common share attributable to AIG common shareholders (diluted)					$	1.41						$	1.16
Adjusted after-tax income per common share attributable to AIG common shareholders (diluted)					$	2.11						$	1.17

(a)Includes all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for non-qualifying (economic) hedging or for asset replication and net realized gains and losses on Fortitude Re funds withheld assets.

(b)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.

(c)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.

The following table presents a reconciliation of General Insurance and Other Operations Net investment income and other/pre-tax income (loss) to Net investment income and other, APTI basis/adjusted pre-tax income (loss):



Three Months Ended March 31,	2026							2025
	General Insurance				Other Operations			General Insurance				Other Operations
(in millions)	Net Investment Income and Other		Pre-tax Income (Loss)			Net Investment Income and Other		Pre-tax Income (Loss)		Net Investment Income and Other			Pre-tax Income (Loss)		Net Investment Income and Other		Pre-tax Income (Loss)
Net investment income and other/Pre-tax income (loss)(a)	$	784	$	1,341		$	(71)	$	(354)	$	756		$	849	$	360	$	111
Consolidation and Eliminations	—		—			1		—		—			—		(1)		—
Other income (expense) - net	(2)		—			1		—		—			—		(9)		—
Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares	82		82			155		155		(20)			(20)		(197)		(197)

Net investment income on Fortitude Re funds withheld assets	—		—			(23)		(23)		1			1		(41)		(41)
Net realized losses on Fortitude Re funds withheld assets	—		—			—		13		—			2		—		—
Net realized gains on Fortitude Re funds withheld embedded derivative	—		—			—		(10)		—			—		—		41
Net realized (gains) losses	—		156			—		(20)		(1)			53		3		13
Net (gain) loss on divestitures and other	—		(3)			—		130		—			6		—		(9)
Non-operating litigation reserves and settlements	—		—			—		—		—			—		—		(11)
Unfavorable (favorable) prior year development and related amortization changes ceded under retroactive reinsurance agreements	—		5			—		(13)		—			14		—		(5)
Net loss reserve discount (benefit) charge	—		(48)			—		—		—			17		—		—
Net results of businesses in run-off	—		—			(9)		5		—			—		(5)		(5)
Non-operating pension expenses	—		1			—		(2)		—			4		—		1
Integration and transaction costs associated with acquiring or divesting businesses	—		32			—		(25)		—			—		—		5
Restructuring and other costs	—		57			—		19		—			45		—		31
Non-recurring costs related to regulatory or accounting changes	—		5			—		—		—			4		—		—

Net investment income and other, APTI basis/Adjusted pre-tax income (loss)	$	864	$	1,628		$	54	$	(125)	$	736		$	975	$	110	$	(66)

(a)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.


AIG \| First Quarter 2026 Form 10-Q			51

ITEM 2 | Use of Non-GAAP Measures

Book value per share, excluding investments related cumulative unrealized gains and losses recorded in Accumulated other comprehensive income (loss) (AOCI) adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets (collectively, Investments AOCI) (Adjusted book value per share) is used to show the amount of our net worth on a per share basis after eliminating the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions. In addition, we adjust for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets since these fair value movements are economically transferred to Fortitude Re. Adjusted book value per share is derived by dividing total AIG common shareholders’ equity, excluding Investments AOCI (AIG adjusted common shareholders' equity) by total common shares outstanding.

Book value per share, excluding Investments AOCI, deferred tax assets (DTA) and AIG’s ownership interest in Corebridge (Core operating book value per share) is used to show the amount of our net worth on a per share basis after eliminating Investments AOCI, DTA and AIG’s ownership interest in Corebridge. We believe this measure is useful to investors because it eliminates the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions. We also exclude the portion of DTA representing U.S. tax attributes related to net operating loss carryforwards (NOLs), corporate alternative minimum tax credits (CAMTCs) and foreign tax credits (FTCs) that have not yet been utilized. Amounts for interim periods are estimates based on projections of full-year attribute utilization. As NOLs, CAMTCs and FTCs are utilized, the corresponding portion of the DTA utilized is included. We exclude AIG’s ownership interest in Corebridge since it is not a core long-term investment for AIG. Core operating book value per share is derived by dividing total AIG common shareholders’ equity, excluding Investments AOCI, DTA and AIG’s ownership interest in Corebridge (AIG core operating shareholders’ equity) by total common shares outstanding.

The following table presents reconciliations of Book value per share to Adjusted book value per share and Core operating book value per share, which are non-GAAP measures**.**



	March 31,		December 31,
(in millions, except per share data)	2026		2025


Total AIG common shareholders' equity	$	40,405	$	41,139
Less: Investments related AOCI	(1,993)		(1,376)
Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets	(537)		(523)
Subtotal: Investments AOCI	(1,456)		(853)
AIG adjusted common shareholders' equity	$	41,861	$	41,992













Total AIG common shareholders' equity	$	40,405	$	41,139
Less: AIG's ownership interest in Corebridge	607		1,512
Less: Investments related AOCI - AIG	(1,993)		(1,376)
Add: Cumulative unrealized gains and losses related to Fortitude Re funds withheld assets - AIG	(537)		(523)
Subtotal: Investments AOCI - AIG	(1,456)		(853)
Less: Deferred tax assets	3,132		3,278
AIG core operating shareholders' equity	$	38,122	$	37,202

Total common shares outstanding	532.9		538.2

Book value per share	$	75.82	$	76.44
Adjusted book value per share	78.55		78.02


Core operating book value per share	71.54		69.12

Return on equity – Adjusted after-tax income excluding Investments AOCI (Adjusted return on equity) is used to show the rate of return on common shareholders’ equity excluding Investments AOCI. We believe this measure is useful to investors because it eliminates the fair value of investments which can fluctuate significantly from period to period due to changes in market conditions. Adjusted return on equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG adjusted common shareholders’ equity.

Return on equity – Adjusted after-tax income excluding Investments AOCI, DTA and AIG’s ownership interest in Corebridge (Core operating return on equity) is used to show the rate of return on common shareholders’ equity excluding Investments AOCI, DTA and AIG’s ownership interest in Corebridge. We believe this measure is useful to investors because it eliminates the fair value of investments that can fluctuate significantly from period to period due to changes in market conditions. We also exclude the portion of DTA representing U.S. tax attributes related to NOLs, CAMTCs and FTCs that have not yet been utilized. Amounts for interim periods are estimates based on projections of full-year attribute utilization. As NOLs, CAMTCs and FTCs are utilized, the corresponding portion of the DTA utilized is included. We exclude AIG’s ownership interest in Corebridge since it is not a core long-term investment for AIG. We believe this metric provides investors with greater insight as to the underlying profitability of our property and casualty business. Core operating return on equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG core operating shareholders’ equity.


52			AIG \| First Quarter 2026 Form 10-Q

ITEM 2 | Use of Non-GAAP Measures

The following table presents reconciliations of Return on equity to Adjusted return on equity and Core operating return on equity, which are non-GAAP measures.


Three Months Ended March 31,

(dollars in millions)	2026			2025
Actual or annualized net income (loss) attributable to AIG common shareholders	$	3,052		$	2,792

Actual or annualized adjusted after-tax income attributable to AIG common shareholders	$	4,584		$	2,808

Average AIG common shareholders' equity	$	40,772		$	41,976
Less: Average investments AOCI	(1,155)			(1,992)
Average AIG adjusted common shareholders' equity	$	41,927		$	43,968





Average AIG common shareholders' equity	$	40,772		$	41,976
Less: Average AIG's ownership interest in Corebridge	1,060			3,914
Less: Average Investments AOCI - AIG	(1,155)			(1,992)
Less: Average deferred tax assets	3,205			3,430
Average AIG core operating shareholders' equity	$	37,662		$	36,624

Return on equity	7.5		%	6.7		%
Adjusted return on equity	10.9			6.4

Core operating return on equity	12.2			7.7

Ratios: We, along with most property and casualty insurance companies, use the loss ratio, the expense ratio and the combined ratio as measures of underwriting performance. These ratios are relative measurements that describe, for every $100 of net premiums earned, the amount of losses and loss adjustment expenses (which for General Insurance excludes net loss reserve discount), and the amount of other underwriting expenses that would be incurred. A combined ratio of less than 100 indicates underwriting income and a combined ratio of over 100 indicates an underwriting loss. Our ratios are calculated using the relevant segment information calculated under GAAP, and thus may not be comparable to similar ratios calculated for regulatory reporting purposes. The underwriting environment varies across countries and products, as does the degree of litigation activity, all of which affect such ratios. In addition, investment returns, local taxes, cost of capital, regulation, product type and competition can have an effect on pricing and consequently on profitability as reflected in underwriting income and associated ratios.

Accident year loss and accident year combined ratios, as adjusted (Accident year loss ratio, ex-CAT and Accident year combined ratio, ex-CAT): both the accident year loss and accident year combined ratios, as adjusted, exclude catastrophe losses and related reinstatement premiums, net of reinsurance, and prior year development, net of prior year premiums, net of reinsurance, and the impact of reserve discounting. Natural catastrophe losses are generally weather or seismic events, in each case, having a net impact on AIG in excess of $10 million and man-made catastrophe losses, such as terrorism and civil unrest that exceed the $10 million threshold. We believe that as adjusted ratios are meaningful measures of our underwriting results on an ongoing basis as they exclude catastrophes and the impact of reserve discounting which are outside of management’s control. We also exclude prior year development to provide transparency related to current accident year results.

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

Investments

OVERVIEW

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


INVESTMENT HIGHLIGHTS IN THE THREE MONTHS ENDED MARCH 31, 2026

•Blended investment yields on new investments were higher than blended rates on investments that were sold, matured or called during this period. We continued to make investments in structured securities and other fixed maturity securities with attractive risk-adjusted return characteristics to improve yields and increase net investment income. •Total Net investment income decreased for the three months ended March 31, 2026 compared to the prior year, primarily due to changes in the fair value of AIG's investments in Corebridge and Equity securities and lower income from mortgage loans and alternative investments, partially offset by higher income on available for sale fixed maturity securities.


AIG \| First Quarter 2026 Form 10-Q			53

ITEM 2 | Investments

INVESTMENT STRATEGIES

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

Some of our key investment strategies are as follows:

Our fundamental strategy across the portfolios is to seek investments with similar duration and cash flow characteristics to the associated insurance liabilities to the extent practicable.
Within General Insurance, investments generally consist of a split between reserve backing and surplus portfolios.

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

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

We seek to purchase private equity and private credit assets that offer enhanced yield through illiquidity premiums and other portfolio diversification benefits. The private credit assets typically provide credit protections such as covenants along with other features that support insurance company needs.
Given our global presence, we seek investments that provide diversification from investments available in local markets. To the extent we purchase these investments, we generally hedge any currency risk using derivatives, which could provide opportunities to earn higher risk adjusted returns compared to investments in the functional currency.
AIG Parent, included in Other Operations, actively manages its assets and liabilities, counterparties and duration. AIG Parent’s liquidity sources are held primarily in the form of cash and short-term investments. This strategy allows us to both diversify our sources of liquidity and reduce the cost of maintaining sufficient liquidity.

Asset-Liability Management

The investment strategy within the General Insurance companies focuses on growth of surplus, maintenance of sufficient liquidity for unanticipated insurance claims, and preservation of capital. General Insurance invests primarily in fixed maturity securities issued by corporations, municipalities and other governmental agencies; structured securities collateralized by, among other assets, residential and commercial real estate; and commercial mortgage loans. Fixed maturity securities of the General Insurance companies have an average duration of 4 years.

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

In addition, a portion of the surplus of General Insurance companies is invested in a diversified portfolio of alternative investments that seek to balance liquidity, volatility and growth of surplus. Although these alternative investments are subject to periodic earnings fluctuations, they have historically achieved yields in excess of the fixed maturity portfolio yields and have provided added diversification to the broader portfolio.


54			AIG \| First Quarter 2026 Form 10-Q

ITEM 2 | Investments

Available-for-Sale Investments

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


(in millions)		March 31, 2026		December 31, 2025
Bonds available for sale:
U.S. government and government sponsored entities	$	2,316	$	3,298
Obligations of states, municipalities and political subdivisions		2,696		2,775
Non-U.S. governments		6,291		6,516
Corporate debt		37,802		37,235
Mortgage-backed, asset-backed and collateralized:
RMBS - agency		6,405		5,988
RMBS - non-agency		4,667		4,180
CMBS		4,636		4,616
CLO/ABS		5,715		6,424
Total mortgage-backed, asset-backed and collateralized		21,423		21,208
Total bonds available for sale*	$	70,528	$	71,032

*At March 31, 2026 and December 31, 2025, the fair value of bonds available for sale we held that were below investment grade or not rated totaled $5.7 billion and $5.9 billion, respectively.

The following table presents the fair value of our aggregate credit exposures to non-U.S. governments for our fixed maturity securities:


(in millions)		March 31, 2026		December 31, 2025
Canada	$	1,083	$	1,207
Japan		474		489
Germany		380		444
United Kingdom		356		344
Israel		338		322
Australia		303		284
Denmark		235		241
Singapore		221		206
Malaysia		205		216
Korea, Republic of		197		214
Other		2,520		2,572
Total	$	6,312	$	6,539

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


		March 31, 2026										December 31, 2025 Total
(in millions)		Sovereign		Financial Institution		Non-Financial Corporates		Structured Products		Total
Euro-Zone countries:
France	$	132	$	1,570	$	514	$	42	$	2,258	$	2,258
Germany		380		261		857		51		1,549		1,660
Netherlands		65		599		304		50		1,018		1,061
Ireland		5		132		106		469		712		733
Spain		7		347		86		54		494		494
Italy		13		91		336		30		470		480
Denmark		235		91		48		—		374		337
Belgium		10		132		56		14		212		216
Luxembourg		18		45		88		18		169		205
Finland		9		68		3		1		81		93
Other Euro-Zone		200		34		32		27		293		310
Total Euro-Zone	$	1,074	$	3,370	$	2,430	$	756	$	7,630	$	7,847
Remainder of Europe:
United Kingdom	$	356	$	1,634	$	1,687	$	427	$	4,104	$	4,017
Switzerland		19		238		253		—		510		534
Sweden		117		208		28		—		353		372


AIG \| First Quarter 2026 Form 10-Q			55

ITEM 2 | Investments


		March 31, 2026										December 31, 2025 Total
(in millions)		Sovereign		Financial Institution		Non-Financial Corporates		Structured Products		Total
Norway		60		77		4		—		141		136
Jersey (Channel Islands)		3		3		8		48		62		58
Other - Remainder of Europe		38		14		4		—		56		59
Total - Remainder of Europe	$	593	$	2,174	$	1,984	$	475	$	5,226	$	5,176
Total	$	1,667	$	5,544	$	4,414	$	1,231	$	12,856	$	13,023

Investments in Municipal Bonds

At March 31, 2026, the U.S. municipal bond portfolio was composed primarily of essential service revenue bonds and high-quality tax-exempt bonds with 98 percent of the portfolio rated A or higher.

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


	March 31, 2026
(in millions)		State General Obligation		Local General Obligation		Revenue		Total Fair Value		December 31, 2025 Total Fair Value
California	$	209	$	138	$	321	$	668	$	690
New York		28		88		255		371		401
Massachusetts		40		11		111		162		167
Florida		1		—		130		131		127
Texas		11		29		88		128		144
Connecticut		26		2		83		111		111
Pennsylvania		34		—		74		108		118
Illinois		4		17		54		75		84
Georgia		48		—		26		74		73
Oregon		7		46		15		68		67
Virginia		8		3		54		65		60
Hawaii		63		—		1		64		66
Alabama		—		—		52		52		57
All other states		31		34		554		619		610
Total	$	510	$	368	$	1,818	$	2,696	$	2,775

Investments in Corporate Debt Securities

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


Industry Category
(in millions)		March 31, 2026		December 31, 2025
Financial institutions:
Banks	$	8,052	$	8,086
Insurance		1,472		1,378
Securities firms and other finance companies		887		856
Other financial institutions		5,785		5,733
Utilities		3,307		3,231
Communications		2,301		2,188
Consumer noncyclical		2,812		2,706
Capital goods		1,723		1,805
Energy		2,233		2,010
Consumer cyclical		3,553		3,649
Basic materials		2,229		2,093
Other		3,448		3,500
Total*	$	37,802	$	37,235

*At March 31, 2026 and December 31, 2025, approximately 89 percent and 88 percent, respectively, of these investments were rated investment grade.


56			AIG \| First Quarter 2026 Form 10-Q

ITEM 2 | Investments

Commercial Mortgage Loans

At March 31, 2026, we had direct commercial mortgage loan exposure of $2.4 billion.

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


	Number of Loans		Class													Percent of Total
(dollars in millions)		Apartments		Offices		Retail		Industrial		Hotel		Others		Total
March 31, 2026
State:
California	16	$	89	$	191	$	26	$	17	$	16	$	—	$	339	14	%
New York	17		49		183		44		19		32		—		327	14
Texas	19		71		135		1		30		—		40		277	11
Massachusetts	7		—		172		48		7		—		—		227	9
Florida	11		68		—		60		7		38		—		173	7
Pennsylvania	9		29		58		15		18		—		—		120	5
Illinois	5		88		13		—		—		—		—		101	4
New Jersey	4		56		—		—		—		—		10		66	3
Washington	3		49		—		—		—		—		—		49	2
Colorado	3		7		20		15		—		—		—		42	2
Other states	21		100		3		67		28		—		—		198	9
Foreign	22		144		192		49		27		78		—		490	20
Total*	137	$	750	$	967	$	325	$	153	$	164	$	50	$	2,409	100	%




December 31, 2025
State:
California	17	$	89	$	190	$	27	$	18	$	31	$	—	$	355	14	%
New York	17		48		188		44		19		33		—		332	13
Texas	19		72		135		1		30		10		—		248	10
Massachusetts	7		—		175		48		7		—		—		230	9
Florida	11		68		—		60		8		37		—		173	7
Pennsylvania	9		28		57		15		18		—		—		118	5
Illinois	5		88		13		—		—		—		—		101	4
New Jersey	8		55		—		—		3		—		10		68	3
Washington	3		49		—		—		—		—		—		49	2
Colorado	3		7		20		16		—		—		—		43	2
Other states	23		109		12		68		28		—		—		217	9
Foreign	23		180		196		78		27		80		—		561	22
Total*	145	$	793	$	986	$	357	$	158	$	191	$	10	$	2,495	100	%

*Does not reflect allowance for credit losses.

For additional information on commercial mortgage loans, see Note 6 to the Condensed Consolidated Financial Statements.

Net Realized Gains and Losses

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


Three Months Ended 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)


AIG \| First Quarter 2026 Form 10-Q			57

ITEM 2 | Investments

Higher Net realized losses excluding Fortitude Re funds withheld assets in the three months ended March 31, 2026 compared to 2025 were primarily due to losses on foreign exchange, partially offset by lower losses on fixed maturity securities.

Net realized gains (losses) on Fortitude Re funds withheld assets primarily reflect changes in the valuation of the modified coinsurance and funds withheld assets. Increases in the valuation of these assets result in losses to AIG as the appreciation on the assets under those reinsurance arrangements must be transferred to Fortitude Re. Decreases in valuation of the assets result in gains to AIG as the depreciation on the assets under those reinsurance arrangements must be transferred to Fortitude Re. For additional information on the impact of the funds withheld arrangements with Fortitude Re, see Note 7 to the Condensed Consolidated Financial Statements.

For additional information on our investment portfolio, see Note 5 to the Condensed Consolidated Financial Statements.

Unrealized Gains and Losses on Investments

Net unrealized investment losses included in shareholders’ equity were $2.0 billion at March 31, 2026 compared with $2.4 billion at March 31, 2025. The change in net unrealized gains and losses on investments in the three months ended March 31, 2026 was primarily attributable to a change in the fair value of fixed maturity securities mainly due to higher interest rates and slight widening of credit spreads. The change in net unrealized gains and losses on investments in the three months ended March 31, 2025 was primarily attributable to a change in the fair value of fixed maturity securities mainly due to lower interest rates and narrowing of credit spreads.

At March 31, 2026, the Company had $1.5 billion fixed maturity investments reported at fair value for which fair value was less than 80 percent of amortized cost. At December 31, 2025, the Company had $1.4 billion fixed maturity investments reported at fair value for which fair value was less than 80 percent of amortized cost.

At March 31, 2026 and December 31, 2025, below investment grade securities comprised 8 percent and 8 percent, respectively, of the fair value of our fixed maturity investment portfolio. Included in below investment grade securities at March 31, 2026 were securities in an unrealized loss position that, in the aggregate, had an amortized cost of $2.8 billion and a fair value of $2.7 billion, resulting in a net pre-tax unrealized investment loss of $125 million.

For additional information on our investment portfolio, see Note 5 to the Condensed Consolidated Financial Statements.

CREDIT RATINGS

Moody’s Investors Service, Inc. (Moody’s), Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc. (S&P), Fitch Ratings Inc. (Fitch), or similar foreign rating services rate a significant portion of our foreign entities’ fixed maturity securities portfolio. Rating services are not available for some foreign-issued securities. We closely monitor the credit quality of the foreign portfolio’s non-rated fixed maturity securities.

At March 31, 2026, approximately 62 percent of our fixed maturity securities were held by our U.S. entities. Approximately 91 percent of these securities were rated investment grade by one or more of the major rating agencies.

At March 31, 2026, approximately 93 percent of our fixed maturity securities held by our foreign entities were either rated investment grade or, on the basis of analysis of our investment managers, were equivalent from a credit standpoint to securities rated investment grade. Approximately 17 percent of the foreign entities’ fixed maturity securities portfolio is comprised of sovereign fixed maturity securities supporting policy liabilities in the country of issuance.

Composite AIG Credit Ratings

With respect to our fixed maturity securities, the credit ratings in the table below reflect: (i) a composite of the ratings of the three major rating agencies, or when agency ratings are not available, the National Association of Insurance Commissioners (NAIC) Designation assigned by the NAIC Securities Valuation Office (SVO) (96 percent of total fixed maturity securities), or (ii) our internal ratings when these investments have not been rated by any of the major rating agencies or the NAIC. The “Non-rated” category consists of fixed maturity securities that have not been rated by any of the major rating agencies, the NAIC or us.

For information regarding credit risks associated with investments, see Part II, Item 7. MD&A – Enterprise Risk Management in the 2025 Annual Report.


58			AIG \| First Quarter 2026 Form 10-Q

ITEM 2 | Investments

The following table presents the composite AIG credit ratings of our fixed maturity securities calculated on the basis of their fair value:


	Available for Sale				Other Bond Securities				Total
(in millions)	March 31, 2026		December 31, 2025		March 31, 2026		December 31, 2025		March 31, 2026		December 31, 2025
Rating:
Other fixed maturity securities
AAA	$	3,701	$	4,063	$	13	$	14	$	3,714	$	4,077
AA	7,716		8,693		49		50		7,765		8,743
A	17,449		17,679		114		173		17,563		17,852
BBB	15,535		14,565		97		100		15,632		14,665
Below investment grade	4,615		4,730		2		11		4,617		4,741



Non-rated	89		94		—		—		89		94



Total	$	49,105	$	49,824	$	275	$	348	$	49,380	$	50,172
Mortgage-backed, asset-backed and collateralized
AAA	$	11,118	$	11,198	$	96	$	102	$	11,214	$	11,300
AA	7,866		7,468		48		49		7,914		7,517
A	1,065		1,030		152		135		1,217		1,165
BBB	341		411		76		77		417		488
Below investment grade	1,033		1,101		30		30		1,063		1,131







Total	$	21,423	$	21,208	$	402	$	393	$	21,825	$	21,601
Total
AAA	$	14,819	$	15,261	$	109	$	116	$	14,928	$	15,377
AA	15,582		16,161		97		99		15,679		16,260
A	18,514		18,709		266		308		18,780		19,017
BBB	15,876		14,976		173		177		16,049		15,153
Below investment grade	5,648		5,831		32		41		5,680		5,872



Non-rated	89		94		—		—		89		94



Total	$	70,528	$	71,032	$	677	$	741	$	71,205	$	71,773

Insurance Reserves

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

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


	March 31, 2026									December 31, 2025
(in millions)	Net Loss Reserves			Reinsurance Recoverable			Gross Loss Reserves			Net Loss Reserves		Reinsurance Recoverable			Gross Loss Reserves
General Insurance:
North America Commercial:
U.S. Workers' Compensation (net of discount)		$	2,254		$	3,717		$	5,971	$	2,273		$	3,742		$	6,015
U.S. Excess Casualty		3,117			2,894			6,011		3,153			2,961			6,114
U.S. Other Casualty		4,938			3,099			8,037		4,651			3,170			7,821
U.S. Financial Lines		5,301			1,449			6,750		5,270			1,516			6,786
U.S. Property and Special Risks		4,214			938			5,152		4,142			990			5,132
Other product lines(b)		3,342			2,493			5,835		4,356			2,947			7,303
Total North America Commercial		23,166			14,590			37,756		23,845			15,326			39,171
International Commercial:
UK/Europe Casualty and Financial Lines		8,737			2,258			10,995		8,288			2,376			10,664
UK/Europe Property and Special Risks		2,373			2,206			4,579		2,176			2,214			4,390
Other product lines(b)		2,048			1,528			3,576		1,882			1,272			3,154
Total International Commercial		13,158			5,992			19,150		12,346			5,862			18,208
Global Personal:
U.S. Personal Insurance		840			1,963			2,803		705			1,986			2,691
UK/Europe and Japan Personal Insurance		1,228			717			1,945		1,240			733			1,973
Other product lines(b)		1,091			814			1,905		1,109			750			1,859
Total Global Personal		3,159			3,494			6,653		3,054			3,469			6,523


AIG \| First Quarter 2026 Form 10-Q			59

ITEM 2 | Insurance Reserves


	March 31, 2026									December 31, 2025
(in millions)	Net Loss Reserves			Reinsurance Recoverable			Gross Loss Reserves			Net Loss Reserves		Reinsurance Recoverable			Gross Loss Reserves
Unallocated loss adjustment expenses(b)		1,666			578			2,244		1,965			629			2,594
Total General Insurance		41,149			24,654			65,803		41,210			25,286			66,496





Other Operations		616			3,544			4,160		585			3,585			4,170
Total		$	41,765		$	28,198		$	69,963	$	41,795		$	28,871		$	70,666

(a)Includes net loss reserve discount of $1.3 billion and $1.2 billion at March 31, 2026 and December 31, 2025, respectively. For information regarding loss reserve discount, see Note 11 to the Condensed Consolidated Financial Statements.

(b)Other product lines and Unallocated loss adjustment expenses includes Gross liability for unpaid losses and loss adjustment expense and Reinsurance recoverable on unpaid losses and loss adjustment expense for the Fortitude Re reinsurance of $2.3 billion and $2.3 billion at March 31, 2026 and December 31, 2025, respectively.

Prior Year Development

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


Three Months Ended March 31,

(in millions)		2026		2025
General Insurance:
North America Commercial:
U.S. Workers' Compensation	$	(8)	$	(10)
U.S. Excess Casualty		(6)		(7)
U.S. Other Casualty		(6)		(7)
U.S. Financial Lines		(23)		(5)
U.S. Property and Special Risks		(68)		(21)
Other Product Lines		7		—
Total North America Commercial	$	(104)	$	(50)
International Commercial:
UK/Europe Casualty and Financial Lines	$	(1)	$	—
UK/Europe Property and Special Risks		28		(13)
Other Product Lines		(52)		(1)
Total International Commercial	$	(25)	$	(14)
Global Personal:
U.S. Personal Insurance	$	(22)	$	—
UK/Europe and Japan Personal Insurance		(3)		(1)
Other Product Lines		1		1
Total Global Personal	$	(24)	$	—
Total Prior Year (Favorable) Unfavorable Development*	$	(153)	$	(64)

*Includes the amortization attributed to the deferred gain at inception from the National Indemnity Company (NICO) adverse development reinsurance agreement of $26 million and $31 million for the three months ended March 31, 2026 and 2025, respectively. Consistent with our definition of APTI, the amount excludes the portion of (favorable)/unfavorable prior year reserve development for which we have ceded the risk under the NICO reinsurance agreements of $0 million and $0 million for the three months ended March 31, 2026 and 2025, respectively. Also excludes the related changes in amortization of the deferred gain, which were $9 million and $(9) million for the three months ended March 31, 2026 and 2025, respectively.

Net Loss Development

In the three months ended March 31, 2026, we recognized favorable prior year loss reserve development of $153 million, primarily driven by:

North America Commercial

Favorable development in U.S. Property and Special Risks primarily reflecting lower than expected non-CAT loss experience in Property Lines.
Favorable development in U.S. Financial Lines reflecting favorable experience in Directors and Officers in more mature accident years.
Benefit from the amortization of the deferred gain on the adverse development cover.

International Commercial

Favorable development in Other Product Lines primarily driven by Energy and Cargo.
Adverse development in UK/Europe Property and Special Risks due to adverse development on prior year catastrophes, partially offset by favorable experience primarily concentrated in EMEA Property.


60			AIG \| First Quarter 2026 Form 10-Q

ITEM 2 | Insurance Reserves

Global Personal

Favorable development in U.S. Personal Insurance attributable to favorable development on prior year catastrophes.

In the three months ended March 31, 2025, we recognized favorable prior year loss reserve development of $64 million, primarily driven by:

North America Commercial

Favorable development in U.S. Property.
Amortization benefit related to the deferred gain on the adverse development cover.

International Commercial

Favorable development in Global Specialty.

For certain categories of claims (e.g., construction defect claims and environmental claims) and for reinsurance recoverable, losses may sometimes be reclassified to an earlier or later accident year as more information about the date of occurrence becomes available to us.

Significant Reinsurance Agreements

NICO

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

For a description of AIG’s catastrophe reinsurance protection for 2026, see Part II, Item 7. MD&A – Enterprise Risk Management – Insurance Risk – Natural Catastrophe Risk in the 2025 Annual Report.

The table below shows the calculation of the deferred gain on the adverse development reinsurance agreement, the effect of discounting of loss reserves and amortization of the deferred gain.


(in millions)	March 31, 2026		December 31, 2025
Gross Covered Losses
Covered reserves before discount	$	8,749	$	8,907
Inception to date losses paid	32,746		32,588
Attachment point	(25,000)		(25,000)
Covered losses above attachment point	$	16,495	$	16,495
Deferred Gain Development
Covered losses above attachment ceded to NICO (80%)	$	13,196	$	13,196
Consideration paid including interest	(10,188)		(10,188)
Pre-tax deferred gain before discount and amortization	3,008		3,008
Discount on ceded losses(a)	(838)		(891)
Pre-tax deferred gain before amortization	2,170		2,117
Inception to date amortization of deferred gain at inception	(1,714)		(1,688)
Inception to date amortization attributed to changes in deferred gain(b)	(150)		(156)
Deferred gain liability reflected in AIG's balance sheet	$	306	$	273

(a)The accretion of discount and a reduction in effective interest rates is offset by changes in estimates of the amount and timing of future recoveries.

(b)Excluded from APTI.


AIG \| First Quarter 2026 Form 10-Q			61

ITEM 2 | Insurance Reserves

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


Three Months Ended March 31,

(in millions)		2026		2025
Balance at beginning of year, net of discount	$	273	$	284
(Favorable) unfavorable prior year reserve development ceded to NICO(a)		—		—
Amortization attributed to deferred gain at inception(b)		(26)		(31)
Amortization attributed to changes in deferred gain(c)		6		14
Changes in discount on ceded loss reserves		53		1
Balance at end of period, net of discount	$	306	$	268

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

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

(c)Excluded from APTI.

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

Fortitude Re

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

Liquidity and Capital Resources

OVERVIEW

Liquidity refers to the ability to generate sufficient cash resources to meet the cash requirements of our business operations and payment obligations.

Capital refers to the long-term financial resources available to support the operation of our businesses, fund business growth and cover financial and operational needs that arise from adverse circumstances. Our primary source of ongoing capital generation is derived from the profitability of our insurance subsidiaries. We must comply with numerous constraints on our capital positions. These constraints drive the requirements for capital adequacy at AIG and the individual businesses and are based on internally defined risk tolerances, regulatory requirements, rating agency and creditor expectations and business needs.

For information regarding our liquidity risk framework, see Part II, Item 7. MD&A – Enterprise Risk Management and Part II, Item 7. MD&A – Enterprise Risk Management – Liquidity Risk in the 2025 Annual Report.

We believe that we have sufficient liquidity and capital resources to satisfy future requirements and meet our obligations to policyholders, customers, creditors and debt-holders, including those arising from reasonably foreseeable contingencies or events. Nevertheless, some circumstances may cause our cash or capital needs to exceed projected liquidity or readily deployable capital resources.

For information regarding risks associated with our liquidity and capital resources, see Part I, Item 1A. Risk Factors – Liquidity, Capital and Credit in the 2025 Annual Report.

Depending on market conditions, regulatory and rating agency considerations and other factors, we may take various liability and capital management actions. Liability management actions may include, but are not limited to, repurchasing or redeeming outstanding debt, issuing new debt or engaging in debt exchange offers. Capital management actions may include, but are not limited to, issuing preferred stock, paying dividends to our shareholders on AIG common stock, par value $2.50 per share (AIG Common Stock) and repurchases of AIG Common Stock.


62			AIG \| First Quarter 2026 Form 10-Q

ITEM 2 | Liquidity and Capital Resources

LIQUIDITY AND CAPITAL RESOURCES HIGHLIGHTS

Sources

Liquidity to AIG Parent from Subsidiaries

During the three months ended March 31, 2026, our General Insurance companies distributed dividends of $0.7 billion to AIG Parent or applicable intermediate holding companies.

Sale of Corebridge Shares by AIG

In February 2026, we sold 24.7 million shares of Corebridge common stock at a per share purchase price of $30.42. The aggregate proceeds to AIG Parent were $750 million. As of March 31, 2026, we owned 25,457,020 shares of Corebridge common stock.

Uses

General Borrowings

We made interest payments on our general borrowings totaling $65 million during the three months ended March 31, 2026.

Dividends

We made a cash dividend payment in the amount of $0.45 per share on AIG Common Stock for the three month period ended March 31, 2026, totaling $241 million in the aggregate.

Repurchases of Common Stock

During the three months ended March 31, 2026, AIG Parent repurchased approximately 7 million shares of AIG Common Stock, for an aggregate purchase price of approximately $0.5 billion. Pursuant to a Rule 10b5-1 plan, from April 1, 2026 to April 24, 2026, AIG Parent repurchased approximately 3 million shares of AIG Common Stock for an aggregate purchase price of approximately $209 million.

Acquisition of Convex Group Limited (Convex) and Onex Corporation (Onex)

On February 6, 2026, AIG closed its previously announced acquisitions of (i) a 35 percent equity interest in Convex for $2.1 billion and (ii) a 9.9 percent ownership stake in Onex, for $642 million.

ANALYSIS OF SOURCES AND USES OF CASH

Operating Cash Flow Activities

Insurance companies generally receive most premiums in advance of the payment of claims or policy benefits. The ability of insurance companies to generate positive cash flow is affected by the frequency and severity of losses under their insurance policies, policy retention rates, effective management of their investment portfolio and operating expense discipline.

Interest payments totaled $67 million and $72 million in the three months ended March 31, 2026 and 2025, respectively. Excluding interest payments, AIG had operating cash inflows of $222 million and $16 million in the three months ended March 31, 2026 and 2025, respectively.

Investing Cash Flow Activities

Net cash provided by investing activities in the three months ended March 31, 2026 was $833 million compared to $2.8 billion in the prior year period.

Financing Cash Flow Activities

Net cash used in financing activities in the three months ended March 31, 2026 totaled $799 million, reflecting:

$241 million to pay dividends of $0.45 per share on AIG Common Stock; and
$0.5 billion to repurchase approximately 7 million shares of AIG Common Stock.

Net cash used in financing activities in the three months ended March 31, 2025 totaled $2.7 billion reflecting:

$234 million to pay dividends of $0.40 per share on AIG Common Stock;
$2.2 billion to repurchase approximately 29 million shares of AIG Common Stock; and
$247 million in net outflows from the issuance and repayment of long-term debt.


AIG \| First Quarter 2026 Form 10-Q			63

ITEM 2 | Liquidity and Capital Resources

LIQUIDITY AND CAPITAL RESOURCES OF AIG PARENT AND SUBSIDIARIES

AIG Parent

As of March 31, 2026 and December 31, 2025, respectively, AIG Parent had approximately $6.4 billion and $9.3 billion in liquidity sources held in the form of cash, short-term investments and AIG Parent's committed, revolving syndicated credit facility of $3.0 billion. AIG Parent’s primary sources of liquidity are dividends, distributions, loans and other payments from subsidiaries and credit facilities. AIG Parent’s primary uses of liquidity are for debt service, capital and liability management, operating expenses and dividends on AIG Common Stock.

We expect to access the debt and preferred equity markets from time to time to meet funding requirements as needed.

We utilize our capital resources to support our businesses, with the majority of capital allocated to our insurance operations. Should we have or generate more capital than is needed to support our business strategies (including organic or inorganic growth opportunities) or mitigate risks inherent to our business, we may develop plans to distribute such capital to shareholders via dividends or AIG Common Stock repurchase authorizations or deploy such capital towards liability management.

Insurance Companies

We expect that our insurance companies will be able to continue to satisfy reasonably foreseeable future liquidity requirements and meet their obligations, including those arising from reasonably foreseeable contingencies or events, through cash from operations and, to the extent necessary, monetization of invested assets.

Our insurance companies’ liquidity resources are primarily held in the form of cash, short-term investments and publicly traded, investment grade rated fixed maturity securities. Each of our material insurance companies’ liquidity is monitored through various internal liquidity risk measures. The primary sources of liquidity are premiums, fees, reinsurance recoverables and investment income and maturities. Certain of our insurance companies have access to Federal Home Loan Bank (FHLB) borrowings as an additional source of funding.

The primary uses of liquidity are paid losses, reinsurance payments, interest payments, dividends, expenses, investment purchases and collateral requirements. Payments of dividends to AIG Parent or intermediate holding companies by insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities. For information regarding restrictions on payments of dividends by our subsidiaries, see Note 18 to the Consolidated Financial Statements in the 2025 Annual Report.

Our insurance companies may require additional funding to meet capital or liquidity needs under certain circumstances. For example, large catastrophes may require us to provide additional support to the affected operations of our insurance companies.

We are party to several letter of credit agreements with various financial institutions, which issue letters of credit from time to time in support of our insurance companies. These letters of credit are subject to reimbursement by us in the event of a drawdown. Letters of credit issued in support of our insurance companies totaled approximately $2.2 billion at March 31, 2026.

CREDIT FACILITIES

We maintain a syndicated, multicurrency revolving credit facility (the Facility) as a potential source of liquidity for general corporate purposes with aggregate commitments by the bank syndicate to provide AIG Parent with unsecured revolving loans and/or standby letters of credit of up to $3.0 billion. The Facility is scheduled to expire in September 2029.

Our ability to utilize the Facility is conditioned on the satisfaction of certain legal, operating, administrative and financial covenants and other requirements contained in the Facility. These include covenants relating to our maintenance of a specified total consolidated net worth and total consolidated debt to total consolidated capitalization. Failure to satisfy these and other requirements contained in the Facility would restrict our access to the Facility and could have a material adverse effect on our financial condition, results of operations and liquidity.

As of March 31, 2026, a total of $3.0 billion remained available under the Facility.

CONTRACTUAL OBLIGATIONS

As of March 31, 2026, there have been no material changes in our contractual obligations from December 31, 2025, a description of which may be found in Part II, Item 7. MD&A – Liquidity and Capital Resources – Contractual Obligations in the 2025 Annual Report.

OFF-BALANCE SHEET ARRANGEMENTS AND COMMERCIAL COMMITMENTS

As of March 31, 2026, there have been no material changes in our off-balance sheet arrangements and commercial commitments from December 31, 2025, a description of which may be found in Part II, Item 7. MD&A – Liquidity and Capital Resources – Off-Balance Sheet Arrangements and Commercial Commitments in the 2025 Annual Report.


64			AIG \| First Quarter 2026 Form 10-Q

ITEM 2 | Liquidity and Capital Resources

DEBT

We expect to service and repay general borrowings through maturing investments and dispositions of invested assets, future cash flows from operations, cash flows generated from invested assets, future debt or preferred stock issuances and other financing arrangements.

The following table provides the rollforward of our total debt outstanding:


Three Months Ended March 31, 2026	Balance, Beginning of Year			Issuances		Maturities and Repayments		Effect of Foreign Exchange		Other Changes		Balance, End of Period
(in millions)
General borrowings:
Notes and bonds payable	$	8,529	$	—	$	—	$	(28)	$	2	$	8,503
Junior subordinated debt		481		—		—		—		—		481
Total general borrowings		9,010		—		—		(28)		2		8,984
Borrowings supported by assets		25		—		(7)		—		(1)		17

Total long-term debt	$	9,035	$	—	$	(7)	$	(28)	$	1	$	9,001
Debt of consolidated investment entities - not guaranteed by AIG(a)	$	156	$	—	$	(1)	$	—	$	—	$	155

(a)Includes debt of consolidated investment entities related to real estate investments.

Debt Maturities

The following table summarizes maturing long-term debt at March 31, 2026 of AIG for the next four quarters:


	Second Quarter		Third Quarter		Fourth Quarter		First Quarter
(in millions)	2026		2026		2026		2027		Total
General borrowings	$	—	$	—	$	28	$	—	$	28

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


March 31, 2026				Remainder		Year Ending
(in millions)		Total		of 2026		2027		2028		2029		2030		2031	Thereafter
General borrowings:
Notes and bonds payable	$	8,503	$	28	$	945	$	685	$	204	$	959	$	—	$	5,682
Junior subordinated debt		481		—		—		—		—		—		—	481

Total general borrowings		8,984		28		945		685		204		959		—	6,163
Borrowings supported by assets		17		—		—		—		—		—		—	17

Total long-term debt*	$	9,001	$	28	$	945	$	685	$	204	$	959	$	—	$	6,180

*Does not reflect $155 million of notes issued by consolidated investment entities, for which recourse is limited to the assets of the respective investment entities and for which there is no recourse to the general credit of AIG.

FINANCIAL STRENGTH RATINGS

Financial Strength ratings estimate an insurance company’s ability to pay its obligations under an insurance policy. The following table presents the ratings of our significant insurance subsidiaries as of the date of this filing.


	A.M. Best	S&P	Fitch	Moody’s
National Union Fire Insurance Company of Pittsburgh, Pa.	A	AA-	AA-	A1
Lexington Insurance Company	A	AA-	AA-	A1
American Home Assurance Company	A	AA-	AA-	A1
AIG Europe S.A.	NR	AA-	NR	A1
American International Group UK Limited	A	AA-	NR	A1
AIG General Insurance Company, Ltd.	NR	AA-	NR	NR

These financial strength ratings are current opinions of the rating agencies. They may be changed, suspended or withdrawn at any time by the rating agencies as a result of changes in, or unavailability of, information or based on other circumstances.


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ITEM 2 | Liquidity and Capital Resources

CREDIT RATINGS

Credit ratings estimate a company’s ability to meet its obligations and may directly affect the cost and availability of financing to that company. The following table presents the credit ratings of AIG Parent as of the date of this filing. Figures in parentheses indicate the relative ranking of the ratings within the agency’s rating categories; that ranking refers only to the major rating category and not to the modifiers assigned by the rating agencies.


	Short-Term Debt		Senior Debt Rating
	Moody's	S&P	Moody's(a)	S&P(b)	Fitch(c)
American International Group, Inc.	P-2 (2nd of 4)	A-2 (2nd of 5)	Baa 1 (4th of 9) / Stable	A- (3rd of 9) / Stable	A- (3rd of 9) / Stable

(a)Moody’s appends numerical modifiers 1, 2 and 3 to the generic rating categories to show relative position within the rating categories.

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

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

These credit ratings are current opinions of the rating agencies. They may be changed, suspended or withdrawn at any time by the rating agencies as a result of changes in, or unavailability of, information or based on other circumstances. Ratings may also be withdrawn at our request.

We are party to some agreements that contain “ratings triggers.” Depending on the ratings maintained by one or more rating agencies, these triggers could result in (i) the termination or limitation of credit availability or a requirement for accelerated repayment, (ii) the termination of business contracts or (iii) a requirement to post collateral for the benefit of counterparties.

In the event of a downgrade of our long-term senior debt ratings, certain AIG entities would be required to post additional collateral under some derivative and other transactions, or certain of the counterparties of such entities would be permitted to terminate such transactions early.

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

For information regarding the effects of downgrades in our credit ratings and financial strength ratings, see Part I, Item 1A. Risk Factors – Liquidity, Capital and Credit – “A downgrade by one or more of the rating agencies in the Insurer Financial Strength ratings of our insurance companies could limit their ability to write or prevent them from writing new business and impair their retention of customers and in-force business, and a downgrade in our credit ratings could adversely affect our business, results of operations, financial condition and liquidity” in the 2025 Annual Report and Note 10 to the Condensed Consolidated Financial Statements.

REGULATION AND SUPERVISION

For a discussion of our regulation and supervision by different regulatory authorities in the United States and abroad, including with respect to our liquidity and capital resources, see Part I, Item 1. Business – Regulation and Part I, Item 1A. Risk Factors – Regulation in the 2025 Annual Report.

DIVIDENDS

On April 30, 2026, our Board of Directors (the Board) 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.

The payment of any future dividends will be at the discretion of our Board of Directors and will depend on various factors. For further detail on our dividends, see Note 13 to the Condensed Consolidated Financial Statements.

REPURCHASES 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. During the three months ended March 31, 2026, AIG Parent repurchased approximately 7 million shares of AIG Common Stock for an aggregate purchase price of $0.5 billion. Pursuant to a Rule 10b5-1 plan, from April 1, 2026 to April 24, 2026, AIG Parent repurchased approximately 3 million shares of AIG Common Stock for an aggregate purchase price of approximately $209 million.

The timing of any future share repurchases will depend on market conditions, our business and strategic plans, financial condition, results of operations, liquidity and other factors, as discussed further in Note 13 to the Condensed Consolidated Financial Statements.


66			AIG \| First Quarter 2026 Form 10-Q

ITEM 2 | Enterprise Risk Management

Enterprise Risk Management

Risk management is an integral part of our business strategy and a key element of our approach to corporate governance. We have an integrated process for managing risks throughout our organization in accordance with our firm-wide risk appetite. Our Board of Directors has oversight responsibility for the management of risk. Our Enterprise Risk Management (ERM) Department oversees and integrates the risk management functions in our business and embeds risk management in our day-to-day business processes, providing senior management with a consolidated view of AIG’s major risk positions. Nevertheless, our risk management efforts may not always be successful and material adverse effects on our business, results of operations, cash flows, liquidity or financial condition may occur. For further information regarding the risks associated with our business and operations, see Part I, Item 1A. Risk Factors in the 2025 Annual Report.

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

For additional information on AIG’s risk management program, see Part II, Item 7. MD&A ─ Enterprise Risk Management in the 2025 Annual Report.

The scope and magnitude of our market risk exposures is managed under a robust framework that contains defined risk limits and minimum standards for managing market risk in a manner consistent with our risk appetite statement. As of March 31, 2026, there have been no material changes in our market risk exposures, which may be found in Part II, Item 7. MD&A ─ Enterprise Risk Management in the 2025 Annual Report. See Part I, Item 1A. Risk Factors in the 2025 Annual Report on how difficult conditions in the financial markets and the economy generally may materially adversely affect our business and results of our operations.


AIG \| First Quarter 2026 Form 10-Q			67

Glossary

Glossary

Accident year The annual calendar accounting period in which loss events occurred, regardless of when the losses are actually reported, booked or paid.

Accident year combined ratio, as adjusted (Accident year combined ratio, ex-CAT) The combined ratio excluding catastrophe losses and related reinstatement premiums, net of reinsurance, and prior year development, net of prior year premiums, net of reinsurance, and the impact of reserve discounting.

Accident year loss ratio, as adjusted (Accident year loss ratio, ex-CAT) The loss ratio excluding catastrophe losses and related reinstatement premiums, net of reinsurance, and prior year development, net of prior year premiums, net of reinsurance, and the impact of reserve discounting.

Acquisition ratio Acquisition costs divided by net premiums earned. Acquisition costs are those costs incurred to acquire new and renewal insurance contracts and also include the amortization of VOBA and DAC. Acquisition costs vary with sales and include, but are not limited to, commissions, premium taxes, direct marketing costs and certain costs of personnel engaged in sales support activities such as underwriting.

Attritional losses are losses recorded in the current accident year, which are not catastrophe losses.

Casualty insurance Insurance that is primarily associated with the losses caused by injuries to third persons, i.e., not the insured, and the legal liability imposed on the insured as a result.

Combined ratio Sum of the loss ratio and the acquisition and general operating expense ratios.

Credit Support Annex A legal document generally associated with an ISDA Master Agreement that provides for collateral postings which could vary depending on ratings and threshold levels.

DAC Deferred Policy Acquisition Costs Deferred costs that are incremental and directly related to the successful acquisition of new business or renewal of existing business.

Deferred gain on retroactive reinsurance Retroactive reinsurance is a reinsurance contract in which an assuming entity agrees to reimburse a ceding entity for liabilities incurred as a result of past insurable events. If the amount of premium paid by the ceding reinsurer is less than the related ceded loss reserves, the resulting gain is deferred and amortized over the settlement period of the reserves. Any related development on the ceded loss reserves recoverable under the contract would increase the deferred gain if unfavorable, or decrease the deferred gain if favorable.

Expense ratio Sum of acquisition expenses and general operating expenses, divided by net premiums earned.

General operating expense ratio General operating expenses divided by net premiums earned. General operating expenses are those costs that are generally attributed to the support infrastructure of the organization and include but are not limited to personnel costs, projects and bad debt expenses. General operating expenses exclude losses and loss adjustment expenses incurred, acquisition expenses, and investment expenses.

IBNR Incurred But Not Reported Estimates of claims that have been incurred but not reported to us.


68			AIG \| First Quarter 2026 Form 10-Q

Glossary

ISDA Master Agreement An agreement between two counterparties, which may have multiple derivative transactions with each other governed by such agreement, that generally provides for the net settlement of all or a specified group of these derivative transactions, as well as pledged collateral, through a single payment, in a single currency, in the event of a default on, or affecting any, one derivative transaction or a termination event affecting all, or a specified group of, derivative transactions.

Loan-to-value ratio Principal amount of loan amount divided by appraised value of collateral securing the loan.

Loss Adjustment Expenses The expenses directly attributed to settling and paying claims of insureds and include, but are not limited to, legal fees, adjuster’s fees and the portion of general expenses allocated to claim settlement costs.

Loss ratio Losses and loss adjustment expenses incurred divided by net premiums earned.

Loss reserve development The increase or decrease in incurred losses and loss adjustment expenses related to prior years as a result of the re-estimation of loss reserves at successive valuation dates for a given group of claims.

Loss reserves Liability for unpaid losses and loss adjustment expenses. The estimated ultimate cost of settling claims relating to insured events that have occurred on or before the balance sheet date, whether or not reported to the insurer at that date.

Master netting agreement An agreement between two counterparties who have multiple derivative contracts with each other that provides for the net settlement of all contracts covered by such agreement, as well as pledged collateral, through a single payment, in a single currency, in the event of default on or upon termination of any one such contract.

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

Net premiums written represent the sales of an insurer, adjusted for reinsurance premiums assumed and ceded, during a given period. Net premiums earned are the revenue of an insurer for covering risk during a given period. Net premiums written are a measure of performance for a sales period, while net premiums earned are a measure of performance for a coverage period.

Noncontrolling interests The portion of equity ownership in a consolidated subsidiary not attributable to the controlling parent company.

Pool A reinsurance arrangement whereby all of the underwriting results of the pool members are combined and then shared by each member in accordance with its pool participation percentage.

Prior year development See Loss reserve development.

Reinstatement premiums Premiums on an insurance policy over and above the initial premium imposed at the beginning of the policy payable to reinsurers or receivable from insurers to restore coverage limits that have been reduced or exhausted as a result of reinsured losses under certain excess of loss reinsurance contracts.

Reinsurance The practice whereby one insurer, the reinsurer, in consideration of a premium paid to that insurer, agrees to indemnify another insurer, the ceding company, for part or all of the liability of the ceding company under one or more policies or contracts of insurance which it has issued.

Reinsurance recoverables are comprised of paid losses recoverable, ceded loss reserves, ceded reserves for unearned premiums.

Retroactive reinsurance See Deferred gain on retroactive reinsurance.

Subrogation The amount of recovery for claims we have paid our policyholders, generally from a negligent third party or such party’s insurer.

Unearned premium reserve Liabilities established by insurers and reinsurers to reflect unearned premiums, which are usually refundable to policyholders if an insurance or reinsurance contract is canceled prior to expiration of the contract term.

VOBA Value of Business Acquired Present value of future pre-tax profits from in-force policies of acquired businesses discounted at yields applicable at the time of purchase. VOBA is reported in DAC in the Condensed Consolidated Balance Sheets.


AIG \| First Quarter 2026 Form 10-Q			69

Acronyms

Acronyms


A&H	Accident and Health Insurance	ISDA	International Swaps and Derivatives Association, Inc.
ABS	Asset-Backed Securities	Moody's	Moody's Investors Service, Inc.
APTI	Adjusted pre-tax income	NAIC	National Association of Insurance Commissioners
CDS	Credit Default Swap	NM	Not Meaningful
CLO	Collateralized Loan Obligations	ORR	Obligor Risk Ratings
CMBS	Commercial Mortgage-Backed Securities	RMBS	Residential Mortgage-Backed Securities
ERM	Enterprise Risk Management	S&P	Standard & Poor's Financial Services LLC
FASB	Financial Accounting Standards Board	SEC	Securities and Exchange Commission
GAAP	Accounting Principles Generally Accepted in the United States of America	VIE	Variable Interest Entity

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