Item 1. Financial Statements

404K characters. Original on sec.gov · Markdown

Item 1. Financial Statements

American International Group, Inc.

Condensed Consolidated Balance Sheets (unaudited)


(in millions, except for share data)	June 30, 2026		December 31, 2025
Assets:
Investments:
Fixed maturity securities:
Bonds available for sale, at fair value, net of allowance for credit losses of $35 in 2026 and $37 in 2025 (amortized cost: 2026 - $72,710; 2025 - $71,772)	$	71,472	$	71,032
Other bond securities, at fair value		667		741
Equity securities, at fair value		1,034		502
Mortgage and other loans receivable, net of allowance for credit losses of $37,714 in 2026 and $37,747 in 2025		2,599		2,887
Other invested assets (portion measured at fair value: 2026 - $3,120; 2025 - $5,011)		6,841		6,696
Short-term investments, including restricted cash of $58 in 2026 and $55 in 2025 (portion measured at fair value: 2026 - $5,213; 2025 - $5,909)		9,063		11,141
Total investments		91,676		92,999
Cash		1,490		1,274
Accrued investment income		719		691
Premiums and other receivables, net of allowance for credit losses and disputes of $134 in 2026 and $131 in 2025		12,761		10,441
Reinsurance assets - Fortitude Re		3,039		3,167
Reinsurance assets - other, net of allowance for credit losses and disputes of $247 in 2026 and $248 in 2025		35,755		34,829
Deferred income tax assets		4,876		5,096
Deferred policy acquisition costs		2,217		2,106
Goodwill		3,422		3,435
Deposit accounting assets, net of allowance for credit losses of $49 in 2026 and $49 in 2025		2,546		2,443
Other assets, including restricted cash of $17 in 2026 and $16 in 2025 (portion measured at fair value: 2026 - $3; 2025 - $135)		4,963		4,773


Total assets	$	163,464	$	161,254
Liabilities:
Liability for unpaid losses and loss adjustment expenses, including allowance for credit losses of $14 in 2026 and $14 in 2025	$	69,852	$	70,666
Unearned premiums		20,035		17,991
Future policy benefits		1,302		1,385
Other policyholder funds		321		352
Fortitude Re funds withheld payable (portion measured at fair value: 2026 - $(75); 2025 - $(92))		2,903		3,038
Premiums and other related payables		7,451		5,448
Deposit accounting liabilities		3,340		3,295
Commissions and premium taxes payable		1,506		1,556
Current and deferred income tax liabilities		636		661
Other liabilities (portion measured at fair value: 2026 - $192; 2025 - $162)		6,365		6,509
Long-term debt		8,973		9,035
Debt of consolidated investment entities		154		156


Total liabilities		122,838		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 - 1,381,952,801 shares; 2025 - 1,368,489,324 shares of common stock		(72,283)		(71,199)
Additional paid-in capital		75,341		75,373
Retained earnings		38,388		37,186
Accumulated other comprehensive loss		(5,606)		(4,987)
Total AIG shareholders’ equity		40,606		41,139
Non-redeemable noncontrolling interests		20		23
Total equity		40,626		41,162
Total liabilities and equity	$	163,464	$	161,254

See accompanying Notes to Condensed Consolidated Financial Statements.


2			AIG \| Second Quarter 2026 Form 10-Q

American International Group, Inc.

Condensed Consolidated Statements of Income (Loss) (unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions, except per common share data)		2026		2025		2026		2025
Revenues:
Premiums	$	6,221	$	5,877	$	12,293	$	11,647
Net investment income:
Net investment income - excluding Fortitude Re funds withheld assets		1,091		1,427		1,780		2,492
Net investment income - Fortitude Re funds withheld assets		36		39		59		79
Total net investment income		1,127		1,466		1,839		2,571
Net realized losses:
Net realized losses - excluding Fortitude Re funds withheld assets and embedded derivative		(208)		(192)		(340)		(252)
Net realized losses on Fortitude Re funds withheld assets		(6)		(52)		(19)		(54)
Net realized losses on Fortitude Re funds withheld embedded derivative		(51)		(14)		(41)		(55)
Total net realized losses		(265)		(258)		(400)		(361)
Other income		2		6		3		17
Total revenues		7,085		7,091		13,735		13,874
Benefits, losses and expenses:
Losses and loss adjustment expenses incurred		3,584		3,493		7,059		7,287
Amortization of deferred policy acquisition costs		900		847		1,724		1,672
General operating and other expenses		1,231		1,162		2,368		2,277
Interest expense		100		100		200		192
(Gain) loss on extinguishment of debt		—		(5)		—		(5)
Net (gain) loss on divestitures and other		6		(50)		133		(53)
Total benefits, losses and expenses		5,821		5,547		11,484		11,370
Income before income tax expense		1,264		1,544		2,251		2,504



Income tax expense		316		400		540		662


Net income		948		1,144		1,711		1,842
Less: Net income (loss) attributable to noncontrolling interests		—		—		—		—


Net income attributable to AIG common shareholders	$	948	$	1,144	$	1,711	$	1,842
Net income per common share attributable to AIG common shareholders:



Basic	$	1.79	$	2.00	$	3.21	$	3.16



Diluted	$	1.78	$	1.98	$	3.18	$	3.13
Weighted average shares outstanding:
Basic		529,539,714		572,817,409		533,775,623		583,272,826
Diluted		533,574,538		577,941,232		537,846,532		588,534,928

See accompanying Notes to Condensed Consolidated Financial Statements.


AIG \| Second Quarter 2026 Form 10-Q			3

American International Group, Inc.

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)		2026		2025		2026		2025
Net income	$	948	$	1,144	$	1,711	$	1,842
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		(6)		—		(2)
Change in unrealized appreciation (depreciation) of all other investments		108		492		(508)		917
Change in the discount rates used to measure traditional and limited payment long-duration insurance contracts		5		1		9		7
Change in foreign currency translation adjustments		(11)		429		(132)		623
Change in retirement plan liabilities adjustment		6		—		12		7



Other comprehensive income (loss)		109		916		(619)		1,552
Comprehensive income		1,057		2,060		1,092		3,394
Less: Comprehensive income attributable to noncontrolling interests		—		—		—		1
Comprehensive income attributable to AIG	$	1,057	$	2,060	$	1,092	$	3,393

See accompanying Notes to Condensed Consolidated Financial Statements.


4			AIG \| Second 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 June 30, 2026
Balance, beginning of period	$	4,766	$	(71,647)	$	75,297	$	37,704	$	(5,715)	$	40,405	$	24	$	40,429
Common stock issued under stock plans		—		12		(7)		—		—		5		—		5
Purchase of common stock		—		(648)		—		—		—		(648)		—		(648)
Net income attributable to AIG or noncontrolling interests		—		—		—		948		—		948		—		948
Dividends on common stock ($0.50 per share)		—		—		—		(263)		—		(263)		—		(263)
Other comprehensive income		—		—		—		—		109		109		—		109


Distributions to noncontrolling interests		—		—		—		—		—		—		(4)		(4)
Other		—		—		51		(1)		—		50		—		50
Balance, end of period	$	4,766	$	(72,283)	$	75,341	$	38,388	$	(5,606)	$	40,606	$	20	$	40,626

Three Months Ended June 30, 2025
Balance, beginning of period	$	4,766	$	(67,662)	$	75,251	$	35,540	$	(6,464)	$	41,431	$	28	$	41,459
Common stock issued under stock plans		—		38		(5)		—		—		33		—		33
Purchase of common stock		—		(1,805)		—		—		—		(1,805)		—		(1,805)
Net income attributable to AIG or noncontrolling interests		—		—		—		1,144		—		1,144		—		1,144
Dividends on common stock ($0.45 per share)		—		—		—		(254)		—		(254)		—		(254)
Other comprehensive income		—		—		—		—		916		916		—		916


Distributions to noncontrolling interests		—		—		—		—		—		—		(4)		(4)
Other		—		(1)		43		(6)		—		36		4		40
Balance, end of period	$	4,766	$	(69,430)	$	75,289	$	36,424	$	(5,548)	$	41,501	$	28	$	41,529



Six Months Ended June 30, 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		—		88		(156)		—		—		(68)		—		(68)
Purchase of common stock		—		(1,172)		—		—		—		(1,172)		—		(1,172)
Net income attributable to AIG or noncontrolling interests		—		—		—		1,711		—		1,711		—		1,711
Dividends on common stock ($0.95 per share)		—		—		—		(504)		—		(504)		—		(504)
Other comprehensive loss		—		—		—		—		(619)		(619)		—		(619)


Distributions to noncontrolling interests		—		—		—		—		—		—		(4)		(4)
Other		—		—		124		(5)		—		119		1		120
Balance, end of period	$	4,766	$	(72,283)	$	75,341	$	38,388	$	(5,606)	$	40,606	$	20	$	40,626



Six Months Ended June 30, 2025
Balance, beginning of year	$	4,766	$	(65,573)	$	75,348	$	35,079	$	(7,099)	$	42,521	$	29	$	42,550

Common stock issued under stock plans		—		199		(173)		—		—		26		—		26
Purchase of common stock		—		(4,056)		—		—		—		(4,056)		—		(4,056)
Net income attributable to AIG or noncontrolling interests		—		—		—		1,842		—		1,842		—		1,842
Dividends on common stock ($0.85 per share)		—		—		—		(488)		—		(488)		—		(488)
Other comprehensive income		—		—		—		—		1,551		1,551		1		1,552


Distributions to noncontrolling interests		—		—		—		—		—		—		(5)		(5)
Other		—		—		114		(9)		—		105		3		108
Balance, end of period	$	4,766	$	(69,430)	$	75,289	$	36,424	$	(5,548)	$	41,501	$	28	$	41,529

See accompanying Notes to Condensed Consolidated Financial Statements.


AIG \| Second Quarter 2026 Form 10-Q			5

American International Group, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)


	Six Months Ended June 30,
(in millions)		2026		2025
Cash flows from operating activities:
Net income	$	1,711	$	1,842

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		265		453
Net (gain) loss on divestitures and other		133		(53)
Gain on extinguishment of debt		—		(5)
Unrealized (gains) losses in earnings - net		112		(805)
Equity in (income) loss from equity method investments, net of dividends or distributions		(27)		13
Depreciation and other amortization		1,788		1,749

Changes in operating assets and liabilities:
Insurance reserves		1,865		754
Premiums and other receivables and payables - net		(754)		(813)
Reinsurance assets, net		(876)		(598)
Capitalization of deferred policy acquisition costs		(1,904)		(1,688)
Current and deferred income taxes - net		247		501
Other, net		(689)		(15)
Total adjustments		160		(507)


Net cash provided by operating activities		1,871		1,335
Cash flows from investing activities:
Proceeds from (payments for)
Sales or distributions of:
Available for sale securities		6,241		7,387
Other securities		895		86
Other invested assets		1,430		1,342

Maturities of fixed maturity securities available for sale		5,557		4,101
Principal payments received on and sales of mortgage and other loans receivable		317		660
Purchases of:
Available for sale securities		(12,901)		(13,300)
Other securities		(711)		(76)
Other invested assets		(2,473)		(718)
Mortgage and other loans receivable		(61)		(202)
Net change in short-term investments		2,057		4,449
Other, net		(270)		(414)


Net cash provided by investing activities		81		3,315
Cash flows from financing activities:
Proceeds from (payments for)
Issuance of long-term debt		—		1,241

Repayments of long-term debt		(15)		(1,087)

Purchase of common stock		(1,153)		(4,007)


Dividends on common stock		(504)		(488)
Other, net		(47)		129


Net cash used in financing activities		(1,719)		(4,212)
Effect of exchange rate changes on cash and restricted cash		(13)		31
Net increase in cash and restricted cash		220		469
Cash and restricted cash at beginning of year		1,345		1,372

Cash and restricted cash at end of period	$	1,565	$	1,841


6			AIG \| Second 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


	Six Months Ended June 30,
(in millions)	2026		2025
Cash	$	1,490	$	1,825
Restricted cash included in Short-term investments*	58		2
Restricted cash included in Other assets*	17		14
Total cash and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	1,565	$	1,841
Cash paid during the period for:
Interest	$	205	$	200
Taxes	$	293	$	158
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 \| Second 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 six months ended June 30, 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 June 30, 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 $520 million and goodwill of $440 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, we concluded that we no longer have the ability to exert significant influence over Corebridge. AIG's 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 continued to use Corebridge’s stock price as its fair value for reporting purposes. Dividends received from Corebridge and changes in its stock price continued to be recognized in Net investment income.

On May 7, 2026, we sold 25.5 million shares of Corebridge common stock, representing our remaining interest in Corebridge, at a per share purchase price of $27.90. The aggregate proceeds to AIG Parent were approximately $710 million.


8			AIG \| Second 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.

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 adopting these disclosures.

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 and approach towards adopting the standard.

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


AIG \| Second Quarter 2026 Form 10-Q			9

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

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.

The following table presents AIG’s operations by segment:


Three Months Ended June 30, 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	$	3,125	$	2,324	$	1,410	$	248	$	38	$	256	$	372
International Commercial	2,588		2,272		1,344		304		102		322		200
Global Personal	1,803		1,600		851		342		80		213		114
Total General Insurance(c)	$	7,516	$	6,196	$	3,605	$	894	$	220	$	791	$	686	$	871	$	1,546
Interest expense															—		(99)
Other Operations															36		(43)
Elimination and consolidations															1		—
Total															908		1,404
Reconciling items:
Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares															173		173
Other income (expense) - net															1		—

Net investment income on Fortitude Re funds withheld assets															36		36
Net realized losses on Fortitude Re funds withheld assets															—		(6)
Net realized losses on Fortitude Re funds withheld embedded derivative															—		(51)
Net realized losses(d)															—		(208)
Net gain (loss) on divestitures and other(e)															—		(6)

(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements															—		67
Net loss reserve discount charge															—		(28)
Net results of businesses in run-off(f)															9		(1)
Non-operating pension expenses															—		1
Integration and transaction costs associated with acquiring or divesting businesses															—		(41)
Restructuring and other costs															—		(71)
Non-recurring costs related to regulatory or accounting changes															—		(5)
Total AIG Consolidated															$	1,127	$	1,264


10			AIG \| Second Quarter 2026 Form 10-Q

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


Three Months Ended June 30, 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	$	2,863	$	2,133	$	1,340	$	206	$	46	$	240	$	301
International Commercial	2,325		2,124		1,170		269		84		301		300
Global Personal	1,692		1,621		918		371		71		236		25
Total General Insurance(c)	$	6,880	$	5,878	$	3,428	$	846	$	201	$	777	$	626	$	871	$	1,492
Interest expense															—		(101)
Other Operations															88		2
Elimination and consolidations															(4)		(2)
Total															955		1,391
Reconciling items:
Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares															464		464

Gain on extinguishment of debt															—		5
Net investment income on Fortitude Re funds withheld assets															39		39
Net realized losses on Fortitude Re funds withheld assets															—		(52)
Net realized losses on Fortitude Re funds withheld embedded derivative															—		(14)
Net realized losses(d)															—		(191)
Net gain (loss) on divestitures and other															—		50
Non-operating litigation reserves and settlements															—		2
(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements															—		(53)
Net loss reserve discount charge															—		(12)
Net results of businesses in run-off(f)															8		2
Non-operating pension expenses															—		(5)
Integration and transaction costs associated with acquiring or divesting businesses															—		(1)
Restructuring and other costs															—		(78)
Non-recurring costs related to regulatory or accounting changes															—		(3)
Total AIG Consolidated															$	1,466	$	1,544


Six Months Ended June 30, 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	$	4,730	$	4,577	$	2,831	$	461	$	106	$	480	$	699
International Commercial	5,038		4,459		2,590		582		187		622		478
Global Personal	3,347		3,212		1,693		669		160		407		283
Total General Insurance(c)	$	13,115	$	12,248	$	7,114	$	1,712	$	453	$	1,509	$	1,460	$	1,735	$	3,174

Interest expense															—		(199)
Other Operations															88		(68)

Total															1,823		2,907
Reconciling items:
Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares															(64)		(64)
Other income (expense) - net															3		—

Net investment income on Fortitude Re funds withheld assets															59		59
Net realized losses on Fortitude Re funds withheld assets															—		(19)
Net realized losses on Fortitude Re funds withheld embedded derivative															—		(41)
Net realized losses(d)															—		(344)
Net gain (loss) on divestitures and other(e)															—		(133)

(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements															—		75
Net loss reserve discount benefit (charge)															—		20
Net results of businesses in run-off(f)															18		(6)
Non-operating pension expenses															—		2
Integration and transaction costs associated with acquiring or divesting businesses															—		(48)
Restructuring and other costs															—		(147)
Non-recurring costs related to regulatory or accounting changes															—		(10)
Total AIG Consolidated															$	1,839	$	2,251


AIG \| Second Quarter 2026 Form 10-Q			11

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


Six Months Ended June 30, 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	$	4,037	$	4,257	$	2,866	$	433	$	93	$	435	$	430
International Commercial	4,352		4,175		2,348		514		178		595		540
Global Personal	3,017		3,215		1,980		724		162		450		(101)
Total General Insurance(c)	$	11,406	$	11,647	$	7,194	$	1,671	$	433	$	1,480	$	869	$	1,607	$	2,467

Interest expense															—		(192)
Other Operations															196		27
Elimination and consolidations															(3)		(2)
Total															1,800		2,300
Reconciling items:
Changes in the fair values of equity securities, AIG's investment in Corebridge and gain/loss on sale of shares															681		681

Gain on extinguishment of debt															—		5
Net investment income on Fortitude Re funds withheld assets															79		79
Net realized losses on Fortitude Re funds withheld assets															—		(54)
Net realized losses on Fortitude Re funds withheld embedded derivative															—		(55)
Net realized losses(d)															(2)		(257)
Net gain (loss) on divestitures and other															—		53
Non-operating litigation reserves and settlements															—		13
(Unfavorable) favorable prior year development and related amortization changes ceded under retroactive reinsurance agreements															—		(62)
Net loss reserve discount benefit (charge)															—		(29)
Net results of businesses in run-off(f)															13		7
Non-operating pension expenses															—		(10)
Integration and transaction costs associated with acquiring or divesting businesses															—		(6)
Restructuring and other costs															—		(154)
Non-recurring costs related to regulatory or accounting changes															—		(7)
Total AIG Consolidated															$	2,571	$	2,504

(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 $11 million and $5 million for the three months ended June 30, 2026 and 2025, respectively, and $21 million and $9 million for the six months ended June 30, 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 six months ended June 30, 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.


12			AIG \| Second Quarter 2026 Form 10-Q

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

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:


June 30, 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	$	524	$	2,255	$	—	$	—	$	—	$	2,779
Obligations of states, municipalities and political subdivisions		—		2,679		5		—		—		2,684
Non-U.S. governments		87		5,991		—		—		—		6,078
Corporate debt		—		38,201		76		—		—		38,277
RMBS		—		9,618		1,450		—		—		11,068
CMBS		—		4,900		39		—		—		4,939
CLO/ABS		—		3,789		1,858		—		—		5,647
Total bonds available for sale		611		67,433		3,428		—		—		71,472
Other bond securities:

Obligations of states, municipalities and political subdivisions		—		50		—		—		—		50
Non-U.S. governments		—		22		—		—		—		22
Corporate debt		—		207		—		—		—		207
RMBS		—		41		53		—		—		94
CMBS		—		36		—		—		—		36
CLO/ABS		—		153		105		—		—		258
Total other bond securities		—		509		158		—		—		667
Equity securities(b)		1,016		4		14		—		—		1,034
Other invested assets(c)		—		133		96		—		—		229
Derivative assets(d)		—		313		25		(138)		(197)		3
Short-term investments		3,765		1,448		—		—		—		5,213

Total	$	5,392	$	69,840	$	3,721	$	(138)	$	(197)	$	78,618
Liabilities:
Derivative liabilities(d)	$	—	$	404	$	25	$	(138)	$	(180)	$	111
Fortitude Re funds withheld payable		—		—		(75)		—		—		(75)
Other liabilities(d)		—		—		81		—		—		81

Total	$	—	$	404	$	31	$	(138)	$	(180)	$	117


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


AIG \| Second Quarter 2026 Form 10-Q			13

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


December 31, 2025		Level 1		Level 2		Level 3	Counterparty Netting(a)		Cash Collateral			Total
(in millions)
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 June 30, 2026, includes AIG's ownership interests in Onex of $563 million.

(c)Excludes investments that are measured at fair value using the net asset value (NAV) per share (or its equivalent), which totaled $2.9 billion and $3.3 billion as of June 30, 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.

CHANGES IN LEVEL 3 RECURRING FAIR VALUE MEASUREMENTS

The following tables present changes during the three and six months ended June 30, 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 June 30, 2026 and 2025:


(in millions)	Fair Value Beginning of Period		Net Realized and Unrealized Gains (Losses) Included in Income(a)		Other Comprehensive Income (Loss)		Purchases		Sales		Issuances and Settlements(b)		Gross Transfers In		Gross Transfers Out		Other		Fair Value End of Period
Three Months Ended June 30, 2026
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	4	$	—	$	—	$	2	$	(1)	$	—	$	—	$	—	$	—	$	5
Non-U.S. governments	7		—		—		—		—		—		—		—		(7)		—
Corporate debt	85		1		(6)		2		(2)		(1)		8		—		(11)		76
RMBS	1,486		7		(4)		5		—		(45)		—		—		1		1,450
CMBS	25		(1)		1		—		(6)		—		20		—		—		39
CLO/ABS	1,683		1		(5)		406		(109)		(103)		6		(19)		(2)		1,858
Total bonds available for sale	3,290		8		(14)		415		(118)		(149)		34		(19)		(19)		3,428
Other bond securities:


RMBS	50		—		—		2		—		(1)		—		—		2		53

CLO/ABS	117		(1)		—		—		(9)		(3)		—		—		1		105
Total other bond securities	167		(1)		—		2		(9)		(4)		—		—		3		158
Equity securities	54		3		—		14		(34)		—		—		—		(23)		14
Other invested assets	93		—		—		2		—		(1)		—		—		2		96

Total	$	3,604	$	10	$	(14)	$	433	$	(161)	$	(154)	$	34	$	(19)	$	(37)	$	3,696


(in millions)	Fair Value Beginning of Period		Net Realized and Unrealized (Gains) Losses Included in Income(a)		Other Comprehensive (Income) Loss		Purchases		Sales		Issuances and Settlements(b)		Gross Transfers In		Gross Transfers Out		Other		Fair Value End of Period
Liabilities:

Fortitude Re funds withheld payable	$	(85)	$	51	$	—	$	—	$	—	$	(41)	$	—	$	—	$	—	$	(75)
Other Liabilities	74		7		—		—		—		—		—		—		—		81
Total	$	(11)	$	58	$	—	$	—	$	—	$	(41)	$	—	$	—	$	—	$	6


14			AIG \| Second Quarter 2026 Form 10-Q

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


(in millions)	Fair Value Beginning of Period		Net Realized and Unrealized Gains (Losses) Included in Income(a)		Other Comprehensive Income (Loss)		Purchases		Sales		Issuances and Settlements(b)		Gross Transfers In		Gross Transfers Out		Other		Fair Value End of Period
Three Months Ended June 30, 2025
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	3	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3
Non-U.S. governments	7		—		—		—		—		(1)		—		—		—		6
Corporate debt	115		1		1		2		(2)		(26)		49		(31)		38		147
RMBS	1,656		8		9		8		—		(47)		—		(1)		—		1,633
CMBS	26		1		1		—		—		(1)		—		(1)		—		26
CLO/ABS	915		5		10		386		(33)		(24)		—		—		(59)		1,200
Total bonds available for sale	2,722		15		21		396		(35)		(99)		49		(33)		(21)		3,015
Other bond securities:

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

CLO/ABS	120		1		—		1		—		(1)		2		—		—		123
Total other bond securities	171		2		—		1		—		(2)		2		—		—		174
Equity securities	35		3		—		21		(13)		—		—		—		—		46
Other invested assets	76		—		—		1		—		(6)		1		—		21		93
Other assets	129		—		—		—		—		—		—		—		—		129
Total	$	3,133	$	20	$	21	$	419	$	(48)	$	(107)	$	52	$	(33)	$	—	$	3,457


(in millions)	Fair Value Beginning of Period		Net Realized and Unrealized (Gains) Losses Included in Income(a)		Other Comprehensive (Income) Loss		Purchases		Sales		Issuances and Settlements(b)		Gross Transfers In		Gross Transfers Out		Other		Fair Value End of Period
Liabilities:

Fortitude Re funds withheld payable	$	(79)	$	14	$	—	$	—	$	—	$	(120)	$	—	$	—	$	—	$	(185)
Other liabilities	100		(19)		—		—		—		—		—		—		—		81
Total	$	21	$	(5)	$	—	$	—	$	—	$	(120)	$	—	$	—	$	—	$	(104)


(in millions)	Fair Value Beginning of Year		Net Realized and Unrealized Gains (Losses) Included in Income(a)		Other Comprehensive Income (Loss)		Purchases		Sales		Issuances and Settlements(b)		Gross Transfers In		Gross Transfers Out		Other		Fair Value End of Period
Six Months Ended June 30, 2026
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	4	$	—	$	—	$	2	$	(1)	$	—	$	—	$	—	$	—	$	5
Non-U.S. governments	23		1		—		3		(3)		(3)		—		(14)		(7)		—
Corporate debt	113		1		(8)		6		(7)		(1)		9		(26)		(11)		76
RMBS	1,546		13		(41)		14		—		(91)		8		—		1		1,450
CMBS	24		(1)		1		—		(8)		(2)		25		—		—		39
CLO/ABS	1,741		2		(6)		533		(136)		(261)		6		(19)		(2)		1,858
Total bonds available for sale	3,451		16		(54)		558		(155)		(358)		48		(59)		(19)		3,428
Other bond securities:


RMBS	51		—		—		2		—		(2)		—		—		2		53

CLO/ABS	119		(1)		—		—		(9)		(5)		—		—		1		105
Total other bond securities	170		(1)		—		2		(9)		(7)		—		—		3		158
Equity securities	55		—		—		30		(48)		—		—		—		(23)		14
Other invested assets	92		1		—		3		—		(2)		—		—		2		96
Other assets	130		—		—		—		—		—		—		—		(130)		—
Total	$	3,898	$	16	$	(54)	$	593	$	(212)	$	(367)	$	48	$	(59)	$	(167)	$	3,696


(in millions)	Fair Value Beginning of Year		Net Realized and Unrealized (Gains) Losses Included in Income(a)		Other Comprehensive (Income) Loss		Purchases		Sales		Issuances and Settlements(b)		Gross Transfers In		Gross Transfers Out		Other		Fair Value End of Period
Liabilities:

Fortitude Re funds withheld payable	$	(92)	$	41	$	—	$	—	$	—	$	(24)	$	—	$	—	$	—	$	(75)
Other Liabilities	73		8		—		—		—		—		—		—		—		81
Total	$	(19)	$	49	$	—	$	—	$	—	$	(24)	$	—	$	—	$	—	$	6


AIG \| Second Quarter 2026 Form 10-Q			15

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(a)		Other Comprehensive Income (Loss)		Purchases		Sales		Issuances and Settlements(b)		Gross Transfers In		Gross Transfers Out		Other		Fair Value End of Period
Six Months Ended June 30, 2025
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	3	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3
Non-U.S. governments	7		—		—		—		—		(1)		—		—		—		6
Corporate debt	240		(8)		11		5		(6)		(150)		49		(32)		38		147
RMBS	1,894		15		42		8		(3)		(101)		3		(225)		—		1,633
CMBS	26		1		1		—		(4)		(1)		4		(1)		—		26
CLO/ABS	840		6		11		532		(70)		(54)		—		(6)		(59)		1,200
Total bonds available for sale	3,010		14		65		545		(83)		(307)		56		(264)		(21)		3,015
Other bond securities:

Corporate debt	1		—		—		—		—		—		—		—		—		1
RMBS	50		2		—		—		—		(2)		—		—		—		50

CLO/ABS	113		4		—		1		—		(5)		33		(23)		—		123
Total other bond securities	164		6		—		1		—		(7)		33		(23)		—		174
Equity securities	15		4		—		35		(17)		—		9		—		—		46
Other invested assets	163		—		—		1		—		(30)		1		(63)		21		93

Other assets	129		—		—		—		—		—		—		—		—		129
Total	$	3,481	$	24	$	65	$	582	$	(100)	$	(344)	$	99	$	(350)	$	—	$	3,457


(in millions)	Fair Value Beginning of Year		Net Realized and Unrealized (Gains) Losses Included in Income(a)		Other Comprehensive (Income) Loss		Purchases		Sales		Issuances and Settlements(b)		Gross Transfers In		Gross Transfers Out		Other		Fair Value End of Period
Liabilities:

Fortitude Re funds withheld payable	$	(128)	$	55	$	—	$	—	$	—	$	(112)	$	—	$	—	$	—	$	(185)
Other liabilities	100		(19)		—		—		—		—		—		—		—		81
Total	$	(28)	$	36	$	—	$	—	$	—	$	(112)	$	—	$	—	$	—	$	(104)

(a)Includes Net realized gains (losses) related to assets of $0 million and $10 million for the three months ended June 30, 2026 and 2025, respectively, and $1 million and $1 million for the six months ended June 30, 2026 and 2025, respectively, and the remainder is recorded in Net investment income. All Net realized and unrealized gains (losses) related to liabilities are recorded in Net realized gains (losses).

(b)There were no issuances during the three and six months ended June 30, 2026 and 2025.

The following table presents the changes in unrealized gains (losses) for financial instruments classified as Level 3 still held at the end of the period:


	Three Months Ended June 30,								Six Months Ended June 30,
	2026				2025				2026				2025
(in millions)	Changes in Unrealized Gains (Losses) Included in Income		Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss)		Changes in Unrealized Gains (Losses) Included in Income		Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss)		Changes in Unrealized Gains (Losses) Included in Income		Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss)		Changes in Unrealized Gains (Losses) Included in Income		Changes in Unrealized Gains (Losses) Included in Other Comprehensive Income (Loss)
Assets:
Bonds available for sale:


Corporate debt	$	—	$	(5)	$	—	$	(6)	$	—	$	(7)	$	—	$	—
RMBS	—		(4)		—		(2)		—		(41)		—		15
CMBS	—		1		—		—		—		—		—		—
CLO/ABS	—		(7)		—		9		—		(17)		—		19
Total bonds available for sale	—		(15)		—		1		—		(65)		—		34
Other bond securities:


RMBS	1		—		—		—		1		—		1		—

CLO/ABS	(1)		—		1		—		(2)		—		5		—
Total other bond securities	—		—		1		—		(1)		—		6		—
Equity securities	(1)		—		2		—		(3)		—		2		—
Other invested assets	—		—		(1)		—		1		—		(1)		—

Total	$	(1)	$	(15)	$	2	$	1	$	(3)	$	(65)	$	7	$	34

Liabilities:

Fortitude Re funds withheld payable	$	(18)	$	—	$	(32)	$	—	$	(1)	$	—	$	(34)	$	—

Total	$	(18)	$	—	$	(32)	$	—	$	(1)	$	—	$	(34)	$	—


16			AIG \| Second Quarter 2026 Form 10-Q

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

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 June 30, 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

Gross Transfers in and out of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. The transfers of investments into Level 3 assets were due to diminished market transparency and liquidity for individual security types. Transfers of certain investments out of Level 3 assets were primarily the result of using observable pricing information that reflects the fair value of those securities without the need for adjustment based on our own assumptions regarding the characteristics of a specific security or the current liquidity in the market.

There were no significant transfers of derivative or other liabilities into or out of Level 3 for the three and six months ended June 30, 2026 and 2025.

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.


		June 30, 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	$	991	$	435	$	1,184	$	527
Real assets	Investments in real estate properties, agricultural and infrastructure assets, including power plants and other energy producing assets	410		74		516		81

Growth equity	Funds that make investments in established companies for the purpose of growing their businesses	31		13		172		11

Private equity secondaries	Investments in a pool of diversified funds across sectors and vintage years	303		74		71		98
Other	Includes multi-strategy funds, co-investments and credit funds in opportunistic and distressed strategies	1,022		481		1,147		549
Total private equity funds		2,757		1,077		3,090		1,266





Hedge funds	Funds that pool money from accredited investors and seek returns by investing in a wide variety of strategies aimed at generating returns independent of overall market direction	134		—		174		—
Total		$	2,891	$	1,077	$	3,264	$	1,266

*In the second quarter of 2026, AIG revised the list of investment categories. Historical results have been recast to reflect these changes.

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. Hedge fund investments included above are generally redeemable with a quarter's notice, subject to underlying fund restrictions.


AIG \| Second Quarter 2026 Form 10-Q			17

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:


	Gain (Loss) Three Months Ended June 30,				Gain (Loss) Six Months Ended June 30,
(in millions)		2026		2025		2026		2025

Other bond securities(a)	$	13	$	16	$	10	$	27
Alternative investments(b)		(80)		63		(88)		87
Retained investment in Corebridge(c)		—		455		(154)		664


Total gain (loss)	$	(67)	$	534	$	(232)	$	778

(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 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.

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

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
June 30, 2026
Assets:
Mortgage and other loans receivable	$	—	$	298	$	2,255	$	2,553	$	2,599
Other invested assets		—		491		12		503		503
Other assets		17		—		—		17		17
Liabilities:

Long-term debt		—		8,562		—		8,562		8,973




December 31, 2025
Assets:
Mortgage and other loans receivable	$	—	$	334	$	2,500	$	2,834	$	2,887
Other invested assets		—		480		13		493		493
Other assets		16		—		—		16		16
Liabilities:

Long-term debt		—		8,702		—		8,702		9,035

The carrying value of Short-term investments, Cash, Fortitude Re funds withheld payable, and Debt of consolidated investment entities not included above approximated their fair values.


18			AIG \| Second Quarter 2026 Form 10-Q

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
June 30, 2026
Bonds available for sale:
U.S. government and government sponsored entities	$	2,862	$	—	$	9	$	(92)	$	2,779
Obligations of states, municipalities and political subdivisions		2,698		—		40		(54)		2,684
Non-U.S. governments		6,381		—		63		(366)		6,078
Corporate debt		39,007		(33)		353		(1,050)		38,277
Mortgage-backed, asset-backed and collateralized:
RMBS		11,168		(2)		222		(320)		11,068
CMBS		4,946		—		29		(36)		4,939
CLO/ABS		5,648		—		22		(23)		5,647
Total mortgage-backed, asset-backed and collateralized		21,762		(2)		273		(379)		21,654
Total bonds available for sale(b)	$	72,710	$	(35)	$	738	$	(1,941)	$	71,472
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 June 30, 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
June 30, 2026
Bonds available for sale:
U.S. government and government sponsored entities	$	1,672	$	12	$	260	$	80	$	1,932	$	92
Obligations of states, municipalities and political subdivisions		546		7		530		47		1,076		54
Non-U.S. governments		1,854		32		1,455		335		3,309		367
Corporate debt		12,120		191		7,146		857		19,266		1,048
RMBS		4,495		53		1,595		262		6,090		315
CMBS		1,436		15		472		21		1,908		36
CLO/ABS		2,060		16		113		7		2,173		23
Total bonds available for sale	$	24,183	$	326	$	11,571	$	1,609	$	35,754	$	1,935


AIG \| Second Quarter 2026 Form 10-Q			19

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 June 30, 2026, we held 10,882 individual fixed maturity securities that were in an unrealized loss position and for which no allowance for credit losses has been recorded (including 3,996 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 June 30, 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:


June 30, 2026	Total Fixed Maturity Securities Available for Sale
(in millions)	Amortized Cost, Net of Allowance		Fair Value

Due in one year or less	$	4,386	$	4,386
Due after one year through five years	23,220		23,106
Due after five years through ten years	16,033		15,883
Due after ten years	7,276		6,443
Mortgage-backed, asset-backed and collateralized	21,760		21,654
Total	$	72,675	$	71,472

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.

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)			June 30, 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	3	%		$	51	4	%
Non-U.S. governments			22	1				23	2
Corporate debt			207	12				274	22


20			AIG \| Second Quarter 2026 Form 10-Q

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


(in millions)			June 30, 2026					December 31, 2025
	Fair Value		Percent of Total			Fair Value		Percent of Total
Mortgage-backed, asset-backed and collateralized:
RMBS			94	6				97	8
CMBS			36	2				42	3
CLO/ABS and other collateralized securities			258	15				254	20
Total mortgage-backed, asset-backed and collateralized			388	23				393	31
Total fixed maturity securities			667	39				741	59
Equity securities*			1,034	61				502	41
Total		$	1,701	100	%		$	1,243	100	%

*At June 30, 2026, includes AIG’s interest in Onex of $563 million that is restricted from sale or transfer until February 6, 2029, except in the event of a change in control at Onex.

OTHER INVESTED ASSETS

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


(in millions)	June 30, 2026		December 31, 2025
Alternative investments(a)	$	3,048	$	3,456
Retained investment in Corebridge using fair value option(b)	—		1,512
Investment in Convex	2,188		—
All other investments(c)	1,605		1,728
Total	$	6,841	$	6,696

(a)At June 30, 2026, includes hedge funds of $134 million and private equity funds of $2.7 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 June 30, 2026 and December 31, 2025, the accumulated depreciation was $146 million and $142 million, respectively.

(b)At March 31, 2026, AIG's interest in Corebridge changed from being recognized as an equity method investment in Other invested assets to an equity security, at fair value. On May 7, 2026, AIG sold its remaining interest in Corebridge.

(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 June 30, 2026 and December 31, 2025, respectively.

NET INVESTMENT INCOME

The following table presents the components of Net investment income:


Three Months Ended June 30,	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	$	901	$	20	$	921	$	876	$	16	$	892
Other fixed maturity securities		2		12		14		—		16		16
Equity securities(a)		174		—		174		14		—		14
Interest on mortgage and other loans		29		4		33		46		7		53
Alternative investments(b)		15		—		15		48		—		48
Other investments(c)		12		—		12		482		—		482
Total investment income		1,133		36		1,169		1,466		39		1,505
Investment expenses		42		—		42		39		—		39
Net investment income	$	1,091	$	36	$	1,127	$	1,427	$	39	$	1,466


Six Months Ended June 30,	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	$	1,796	$	40	$	1,836	$	1,666	$	38	$	1,704
Other fixed maturity securities		1		9		10		—		27		27
Equity securities(a)		97		—		97		23		—		23
Interest on mortgage and other loans		62		9		71		90		14		104
Alternative investments(b)		23		—		23		91		—		91


AIG \| Second Quarter 2026 Form 10-Q			21

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


Six Months Ended June 30,	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
Other investments(c)		(117)		1		(116)		699		—		699
Total investment income		1,862		59		1,921		2,569		79		2,648
Investment expenses		82		—		82		77		—		77
Net investment income	$	1,780	$	59	$	1,839	$	2,492	$	79	$	2,571

(a)Includes gain/loss on sale of AIG's remaining interest in Corebridge of $103 million for the three and six months ended June 30, 2026.

(b)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.

(c)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, $27 million and $455 million, respectively, for the three months ended June 30, 2025, and $58 million and $664 million, respectively, for the six months ended June 30, 2025.

NET REALIZED GAINS AND LOSSES

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


Three Months Ended June 30,		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 and impairments of fixed maturity securities	$	(59)	$	(4)	$	(63)	$	(102)	$	(49)	$	(151)

Change in allowance for credit losses on fixed maturity securities		3		—		3		(15)		—		(15)
Change in allowance for credit losses on loans		(1)		—		(1)		45		5		50
Foreign exchange transactions		(8)		1		(7)		(27)		13		(14)
Derivatives and hedge accounting		(20)		(2)		(22)		(98)		(16)		(114)
Sales of alternative investments		(38)		—		(38)		3		—		3
Other*		(85)		(1)		(86)		2		(5)		(3)
Net realized losses – excluding Fortitude Re funds withheld embedded derivative		(208)		(6)		(214)		(192)		(52)		(244)
Net realized losses on Fortitude Re funds withheld embedded derivative		—		(51)		(51)		—		(14)		(14)
Net realized losses	$	(208)	$	(57)	$	(265)	$	(192)	$	(66)	$	(258)


Six Months Ended June 30,	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 and impairments of fixed maturity securities	$	(174)	$	(19)	$	(193)	$	(357)	$	(56)	$	(413)

Change in allowance for credit losses on fixed maturity securities		1		1		2		(7)		—		(7)
Change in allowance for credit losses on loans		32		1		33		50		9		59
Foreign exchange transactions		(27)		(2)		(29)		193		19		212
Derivatives and hedge accounting		(18)		2		(16)		(126)		(22)		(148)
Sales of alternative investments		(16)		—		(16)		3		—		3
Other*		(138)		(2)		(140)		(8)		(4)		(12)
Net realized gains (losses) – excluding Fortitude Re funds withheld embedded derivative		(340)		(19)		(359)		(252)		(54)		(306)
Net realized losses on Fortitude Re funds withheld embedded derivative		—		(41)		(41)		—		(55)		(55)
Net realized losses	$	(340)	$	(60)	$	(400)	$	(252)	$	(109)	$	(361)

*Other includes impairments on investments in private equity and real estate funds.

For the three and six months ended June 30, 2026, the aggregate fair value of available for sale securities sold was $2.7 billion and $6.5 billion, respectively, which resulted in gross realized gains of $18 million and $38 million and gross realized losses of $81 million and $231 million, respectively.

For the three and six months ended June 30, 2025, the aggregate fair value of available for sale securities sold was $2.6 billion and $7.4 billion, respectively, which resulted in gross realized gains of $14 million and $30 million and gross realized losses of $165 million and $443 million, respectively.


22			AIG \| Second Quarter 2026 Form 10-Q

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

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 June 30,				Six Months Ended June 30,

(in millions)		2026		2025		2026		2025
Increase (decrease) in unrealized appreciation (depreciation) of investments:
Fixed maturity securities	$	167	$	505	$	(500)	$	827
Other investments		—		—		(38)		—
Total increase (decrease) in unrealized appreciation (depreciation) of investments	$	167	$	505	$	(538)	$	827

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 June 30,	2026						2025

(in millions)	Equities		Other Invested Assets		Total*		Equities		Other Invested Assets		Total*
Net gains recognized during the period on equity securities and other investments	$	174	$	5	$	179	$	14	$	512	$	526
Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period	102		(151)		(49)		(12)		34		22
Unrealized gains recognized during the reporting period on equity securities and other investments still held at the reporting date	$	72	$	156	$	228	$	26	$	478	$	504


Six Months Ended June 30,	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	$	91	$	(153)	$	(62)	$	23	$	745	$	768
Less: Net gains (losses) recognized during the period on equity securities and other investments sold during the period	119		(162)		(43)		1		33		34
Unrealized gains (losses) recognized during the reporting period on equity securities and other investments still held at the reporting date	$	(28)	$	9	$	(19)	$	22	$	712	$	734

*Includes unrealized gains (losses) on changes in the fair value of AIG's investment in Corebridge. At March 31, 2026, AIG's 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.

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 June 30,				Six Months Ended June 30,
(in millions)		2026		2025		2026		2025
Balance, beginning of year	$	38	$	30	$	37	$	38
Additions:
Securities for which allowance for credit losses was not previously recorded		8		18		14		20


Reductions:
Securities sold during the period		(2)		(2)		(5)		(6)
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		(9)		—		(11)		2
Write-offs charged against the allowance		—		(1)		—		(9)

Balance, end of period	$	35	$	45	$	35	$	45


AIG \| Second Quarter 2026 Form 10-Q			23

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

Purchased Credit Deteriorated Securities

We purchase certain RMBS that have experienced more-than-insignificant deterioration in credit quality since origination. These are referred to as 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 six months ended June 30, 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.

At June 30, 2026 and December 31, 2025, the fair value of securities pledged to us under reverse repurchase agreements totaled $2.2 billion and $3.6 billion, respectively, and the carrying value of reverse repurchase agreements totaled $2.1 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 $7.2 billion and $7.7 billion at June 30, 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 $16 million and $14 million of stock in FHLBs at June 30, 2026 and December 31, 2025, respectively. In addition, our subsidiaries have pledged securities available for sale with a fair value of $2.5 billion at June 30, 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 June 30, 2026, and bonds available for sale and short-term investments at December 31, 2025.


24			AIG \| Second Quarter 2026 Form 10-Q

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

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)	June 30, 2026		December 31, 2025
Commercial mortgages(a)	$	2,263	$	2,495

Commercial loans, other loans and notes receivable(b)	414		503
Total mortgage and other loans receivable(c)	2,677		2,998
Allowance for credit losses(c)	(78)		(111)
Mortgage and other loans receivable, net(c)	$	2,599	$	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 15 percent and 14 percent, respectively, at June 30, 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 June 30, 2026 and December 31, 2025.

(c)Excludes $37.6 billion at both June 30, 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 June 30, 2026 and December 31, 2025, $106 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 June 30, 2026 and December 31, 2025, accrued interest receivable associated with commercial mortgage loans was $10 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.

CREDIT QUALITY OF COMMERCIAL MORTGAGES

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


June 30, 2026		2026		2025		2024		2023		2022		Prior		Total
(in millions)
Less than 65%	$	45	$	14	$	37	$	229	$	79	$	1,069	$	1,473


65% to 80%		—		—		—		—		7		516		523
Greater than 80%		—		—		—		5		23		239		267
Total commercial mortgages	$	45	$	14	$	37	$	234	$	109	$	1,824	$	2,263

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

*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 65 percent and 71 percent at June 30, 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.


AIG \| Second Quarter 2026 Form 10-Q			25

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

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


	Number of Loans		Class													Percent of Total
(dollars in millions)		Apartments		Offices		Retail		Industrial		Hotel		Others		Total
June 30, 2026
Past Due Status:
In good standing	128	$	729	$	788	$	291	$	127	$	164	$	54	$	2,153	95	%
90 days or less delinquent	1		—		66		—		—		—		—		66	3
>90 days delinquent or in process of foreclosure	3		—		21		23		—		—		—		44	2
Total*	132	$	729	$	875	$	314	$	127	$	164	$	54	$	2,263	100	%
Allowance for credit losses		$	3	$	54	$	10	$	—	$	11	$	—	$	78	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)****:**



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2026		2025		2026		2025
Allowance, beginning of year	$	77	$	155	$	111	$	164
Loans charged off	—		(52)		—		(52)

Net charge-offs	—		(52)		—		(52)
Addition to (release of) allowance for loan losses	1		3		(33)		(6)


Allowance, end of period	$	78	$	106	$	78	$	106

(a)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.

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 and six months ended June 30, 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 June 30, 2026 are current and performing in accordance with their modified terms.


26			AIG \| Second Quarter 2026 Form 10-Q

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

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 June 30, 2026, $3.0 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:


	June 30, 2026				December 31, 2025
(in millions)	Carrying Value			Fair Value	Carrying Value			Fair Value	Corresponding Accounting Policy
Fixed maturity securities - available for sale(a)	$	1,672	$	1,672	$	1,780	$	1,780	Fair value through other comprehensive income (loss)
Fixed maturity securities - fair value option		657		657		734		734	Fair value through net investment income
Commercial mortgage and other loans		269		262		359		344	Amortized cost
Short-term investments		275		275		43		43	Fair value through net investment income
Funds withheld investment assets		2,873		2,866		2,916		2,901
Derivative assets, net(b)		—		—		—		—	Fair value through net realized gains (losses)
Other(c)		37		37		137		137	Amortized cost
Total	$	2,910	$	2,903	$	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 $0 million ($0 million after-tax) and $85 million ($67 million after-tax), respectively, for the six months ended June 30, 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 $3 million and $31 million, respectively, as of June 30, 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.

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



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)		2026		2025		2026		2025

Net investment income - Fortitude Re funds withheld assets	$	36	$	39	$	59	$	79
Net realized losses on Fortitude Re funds withheld assets:
Net realized losses - Fortitude Re funds withheld assets		(6)		(52)		(19)		(54)
Net realized losses - Fortitude Re funds withheld embedded derivative		(51)		(14)		(41)		(55)
Net realized losses on Fortitude Re funds withheld assets		(57)		(66)		(60)		(109)
Loss before income tax benefit		(21)		(27)		(1)		(30)
Income tax benefit(a)		(4)		(5)		—		(6)
Net loss		(17)		(22)		(1)		(24)
Change in unrealized appreciation on available for sale securities(a)		13		25		—		23
Comprehensive income (loss)	$	(4)	$	3	$	(1)	$	(1)

(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.


AIG \| Second Quarter 2026 Form 10-Q			27

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

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 June 30, 2026 were $41.6 billion. As of that date, utilizing AIG’s Obligor Risk Ratings (ORRs), (i) approximately 83 percent of the reinsurance recoverables were investment grade; (ii) approximately 15 percent of the reinsurance recoverables were non-investment grade and (iii) approximately 2 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 June 30, 2026 and December 31, 2025, approximately 88 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 June 30,				Six Months Ended June 30,
(in millions)		2026		2025		2026		2025
Balance, beginning of period	$	295	$	279	$	297	$	269
Addition to (release of) allowance for expected credit losses and disputes, net		6		(4)		5		(1)
Write-offs charged against the allowance for credit losses and disputes		(5)		(1)		(6)		(1)

Other changes		—		2		—		9
Balance, end of period	$	296	$	276	$	296	$	276

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.

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:


Six Months Ended June 30,
(in millions)	2026		2025
Balance, beginning of year	$	2,106	$	2,065
Capitalization	1,885		1,667
Amortization expense	(1,724)		(1,672)
Other, including foreign exchange	(50)		91



Balance, end of period	$	2,217	$	2,151


28			AIG \| Second Quarter 2026 Form 10-Q

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

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(b)		Off-Balance Sheet			Total
June 30, 2026
Private equity funds and other investments	$	309,437	$	2,754	$	1,166	(c)	$	3,920
Other(a)		5,988		153		286	(d)		439
Total	$	315,425	$	2,907	$	1,452		$	4,359
December 31, 2025
Private equity funds and other investments	$	403,956	$	3,078	$	1,219	(c)	$	4,297
Other(a)		4,776		188		302	(d)		490
Total	$	408,732	$	3,266	$	1,521		$	4,787

(a)At June 30, 2026 and December 31, 2025, excludes approximately $988 million and $1.1 billion, respectively, of VIE assets related to AIGFP and its consolidated subsidiaries, with maximum off-balance sheet exposure to loss of $967 million and $1.1 billion, respectively. For additional information, see Note 7 to the Consolidated Financial Statements in the 2025 Annual Report.

(b)At June 30, 2026 and December 31, 2025, $2.9 billion and $3.3 billion, respectively, of our total unconsolidated VIE assets were recorded as Other invested assets.

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

(d)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.


AIG \| Second Quarter 2026 Form 10-Q			29

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

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:


	June 30, 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	$	362	$	24	$	1,163	$	95	$	206	$	21	$	1,438	$	88
Derivatives not designated as hedging instruments:(a)
Interest rate contracts		917		223		993		254		935		227		1,012		258
Foreign exchange contracts		1,644		66		1,315		55		1,154		64		2,576		93


Credit contracts(b)		41		25		46		25		42		26		47		26

Total derivatives, gross	$	2,964	$	338	$	3,517	$	429	$	2,337	$	338	$	5,073	$	465
Counterparty netting(c)				(138)				(138)				(164)				(164)
Cash collateral(d)				(197)				(180)				(169)				(212)
Total derivatives on Condensed Consolidated Balance Sheets(e)			$	3			$	111			$	5			$	89

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

(b)As of June 30, 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 $24 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 $2.9 billion at June 30, 2026 and $3.0 billion at December 31, 2025. Fair value of liabilities related to bifurcated embedded derivatives was zero at both June 30, 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 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 $327 million and $362 million at June 30, 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 $232 million and $222 million at June 30, 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.


30			AIG \| Second Quarter 2026 Form 10-Q

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

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 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 the three and six months ended June 30, 2026, we recognized gains (losses) of $22 million and $50 million, respectively, and for the three and six months ended June 30, 2025, we recognized gains (losses) of $(101) million and $(172) 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 June 30, 2026



Foreign exchange contracts:
Net realized gains/(losses)	$	(7)	$	(17)	$	7	$	(17)
Three Months Ended June 30, 2025



Foreign exchange contracts:
Net realized gains/(losses)	$	(26)	$	(18)	$	26	$	(18)
Six Months Ended June 30, 2026



Foreign exchange contracts:
Net realized gains/(losses)	$	(21)	$	(5)	$	21	$	(5)
Six Months Ended June 30, 2025



Foreign exchange contracts:
Net realized gains/(losses)	$	(27)	$	(19)	$	27	$	(19)

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

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

DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

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


	Gains (Losses) Recognized in Income
	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2026		2025		2026		2025
By Derivative Type:
Interest rate contracts	$	(2)	$	(4)	$	(1)	$	(5)
Foreign exchange contracts	(22)		(111)		(17)		(144)




Embedded derivatives	(51)		(14)		(41)		(55)
Total	$	(75)	$	(129)	$	(59)	$	(204)
By Classification:

Net investment income - Fortitude Re funds withheld assets	$	—	$	(1)	$	—	$	(1)
Net realized losses - excluding Fortitude Re funds withheld assets	(22)		(98)		(20)		(126)
Net realized losses on Fortitude Re funds withheld assets*	(53)		(30)		(39)		(77)
Total	$	(75)	$	(129)	$	(59)	$	(204)

*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.


AIG \| Second Quarter 2026 Form 10-Q			31

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

CREDIT RISK-RELATED CONTINGENT FEATURES

We estimate that at June 30, 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 $24 million and $25 million at June 30, 2026 and December 31, 2025, respectively. The aggregate fair value of assets posted as collateral under these contracts at June 30, 2026 and December 31, 2025, was approximately $24 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 $16.1 billion and $13.8 billion at June 30, 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 June 30, 2026 and December 31, 2025 we held collateral of approximately $10.2 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 June 30, 2026 and December 31, 2025.

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



	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)		2026		2025			2026		2025
Liability for unpaid loss and loss adjustment expenses, beginning of period		$	69,963	$	68,896		$	70,666	$	69,168
Reinsurance recoverable		(28,198)		(27,799)			(28,871)		(29,026)
Net Liability for unpaid loss and loss adjustment expenses, beginning of period		41,765		41,097			41,795		40,142
Losses and loss adjustment expenses incurred:
Current year		3,779		3,523			7,440		7,332
Prior years, excluding discount and amortization of deferred gain		(246)		25			(372)		(8)
Prior years, discount charge (benefit)		43		45			18		85
Prior years, amortization of deferred gain on retroactive reinsurance(a)		8		(100)			(27)		(122)
Total losses and loss adjustment expenses incurred		3,584		3,493			7,059		7,287
Losses and loss adjustment expenses paid:
Current year		(885)		(1,023)			(1,365)		(1,452)
Prior years		(2,396)		(2,569)			(5,249)		(5,530)
Total losses and loss adjustment expenses paid		(3,281)		(3,592)			(6,614)		(6,982)
Other changes:
Foreign exchange effect		(26)		895			(220)		1,379

Losses and loss adjustment expenses recognized within net (gain) loss on divestitures		(5)		15			(1)		47
Retroactive reinsurance adjustment (net of discount)(b)		98		(20)			116		15

Other, net of reinsurance recoverables(c)		(141)		—			(141)		—
Total other changes		(74)		890			(246)		1,441


32			AIG \| Second Quarter 2026 Form 10-Q

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



	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)		2026		2025			2026		2025
Liability for unpaid loss and loss adjustment expenses, end of period:
Net liability for unpaid losses and loss adjustment expenses		41,994		41,888			41,994		41,888
Reinsurance recoverable		27,858		27,866			27,858		27,866
Total		$	69,852	$	69,754		$	69,852	$	69,754

(a)Includes $8 million and $7 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 June 30, 2026 and 2025, respectively, and $23 million and $12 million for the six months ended June 30, 2026 and 2025, respectively.

(b)Includes benefit (charge) from change in discount on retroactive reinsurance of $19 million and $19 million for the three months ended June 30, 2026 and 2025 respectively, and $72 million and $20 million for the six months ended June 30, 2026 and 2025, respectively.

(c)Represents held for sale businesses reclassified to Other liabilities.

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 June 30, 2026, we recognized favorable prior year loss reserve development of $246 million, net of external reinsurance but before adverse development reinsurance agreement (ADC) cessions. The development in this period was largely driven by favorable development in U.S. Workers’ Compensation, partially offset by adverse development in U.S. Excess Casualty and U.S. Other Casualty. During the six months ended June 30, 2026, we recognized favorable prior year loss reserve development of $372 million, net of external reinsurance but before ADC cessions. The development in this period was largely driven by favorable experience in U.S. Workers’ Compensation, U.S Property and U.S. Personal Insurance, partially offset by adverse development in U.S. Excess Casualty and U.S. Other Casualty.

During the three months ended June 30, 2025, we recognized unfavorable prior year loss reserve development of $25 million, net of external reinsurance but before ADC cessions. The development in this period was primarily driven by adverse development on U.S. Excess Casualty partially offset by favorable experience in U.S. Workers’ Compensation, U.S. Other Casualty and U.S. Property and Special Risks. During the six months ended June 30, 2025, we recognized favorable prior year loss reserve development of $8 million, net of external reinsurance but before ADC cessions. The development in this period was largely driven by favorable development in U.S. Workers’ Compensation, U.S. Other Casualty, U.S. Property and Special Risks and Global Specialty, partially offset by adverse development on U.S. Excess Casualty.

Discounting of Loss Reserves

At June 30, 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 June 30, 2026 and December 31, 2025.

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).

The discount for asbestos reserves has been fully accreted.

At June 30, 2026 and December 31, 2025, the discount consists of $157 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 six months ended June 30, 2026 and 2025, the benefit / (charge) from changes in discount of $20 million and $(29) million, respectively, were recorded as part of Losses and loss adjustment expenses incurred in the Condensed Consolidated Statements of Income (Loss).


AIG \| Second Quarter 2026 Form 10-Q			33

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

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


(in millions)		June 30, 2026		December 31, 2025
U.S. workers' compensation	$	2,083	$	2,063
Retroactive reinsurance		(819)		(891)
Total reserve discount(a)(b)	$	1,264	$	1,172

(a)Excludes $163 million and $166 million of discount related to certain long-tail liabilities in the UK at June 30, 2026 and December 31, 2025, respectively.

(b)Includes gross discount of $681 million and $693 million, which was 100 percent ceded to Fortitude Re at June 30, 2026 and December 31, 2025, respectively.

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



	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)		2026		2025		2026		2025
Current accident year	$	15	$	33	$	38	$	56
Accretion and other adjustments to prior year discount		(43)		(45)		(18)		(85)

Net reserve discount benefit (charge)		(28)		(12)		20		(29)
Change in discount on loss reserves ceded under retroactive reinsurance		19		19		72		20
Net change in total reserve discount*	$	(9)	$	7	$	92	$	(9)

*Excludes $1 million and $11 million discount related to certain long-tail liabilities in the UK for the three months ended June 30, 2026 and 2025, respectively, and excludes $(3) million and $17 million discount related to certain long-tail liabilities in the UK for the six months ended June 30, 2026 and 2025, respectively.

Amortization of Deferred Gain on Retroactive Reinsurance

Amortization of the deferred gain on retroactive reinsurance includes $(16) million and $93 million related to the adverse development reinsurance cover with NICO for the three months ended June 30, 2026 and 2025, respectively, and $4 million and $110 million for the six months ended June 30, 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 $763 million and $797 million at June 30, 2026 and December 31, 2025, respectively, certain other long-duration contracts of $532 million and $583 million at June 30, 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.

LEGAL CONTINGENCIES

In the ordinary course of business, we are subject to regulatory and government investigations and actions, and litigation and other forms of dispute resolution in proceedings pending in various domestic and foreign jurisdictions. Certain of these matters may involve considerable risk of loss due to the potential for significant jury awards (including in certain cases the possibility of punitive damages or other penalties) and settlements, especially in the case of class actions. It is inherently difficult to predict the size or scope of potential future losses arising from such 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 considered in the establishment of our loss reserves.


34			AIG \| Second Quarter 2026 Form 10-Q

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

Separately, AIG Parent, our subsidiaries and their respective officers and directors are subject to 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 such matters, 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 operations.

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. These matters 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 and limitations on certain business activities.

OTHER COMMITMENTS

In the ordinary course of business, we enter into commitments to invest in limited partnerships, private equity funds and real estate funds. These commitments totaled $1.2 billion and $1.5 billion at June 30, 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 June 30, 2026, an $80 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 completed sales of businesses and assets. 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.


AIG \| Second Quarter 2026 Form 10-Q			35

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

Equity

SHARES OUTSTANDING

Common Stock

The following table presents a rollforward of outstanding shares:



Six Months Ended June 30, 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	—	1.7	1.7
Shares repurchased	—	(15.2)	(15.2)
Shares, end of period	1,906.7	(1,382.0)	524.7

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 July 31, 2026, $2.6 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 July 1, 2026 to July 31, 2026, we repurchased approximately 2 million shares of AIG Common Stock for an aggregate purchase price of approximately $195 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 August 6, 2026, our Board of Directors declared a cash dividend on AIG Common Stock of $0.50 per share, payable on September 30, 2026 to shareholders of record as of September 16, 2026.


36			AIG \| Second 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, March 31, 2026, net of tax	$	(4)	$	(1,989)		$	91	$	(3,102)	$	(711)		$	(5,715)
Change in unrealized appreciation (depreciation) of investments		1		170			—		—		—			171
Change in other		—		(17)			—		—		—			(17)
Change in discount rates		—		—			8		—		—			8

Change in foreign currency translation adjustments		—		—			—		(4)		—			(4)
Change in net actuarial loss		—		—			—		—		7			7
Change in prior service cost		—		—			—		—		1			1
Change in deferred tax asset (liability)		—		(45)			(3)		(7)		(2)			(57)


Total other comprehensive income (loss)		1		108			5		(11)		6			109


Balance, June 30, 2026, net of tax	$	(3)	$	(1,881)		$	96	$	(3,113)	$	(705)		$	(5,606)

Balance, March 31, 2025, net of tax	$	—	$	(2,443)		$	74	$	(3,328)	$	(767)		$	(6,464)
Change in unrealized appreciation (depreciation) of investments		(7)		512			—		—		—			505
Change in other		—		(9)			—		—		—			(9)



Change in foreign currency translation adjustments		—		—			—		414		—			414
Change in net actuarial loss		—		—			—		—		2			2

Change in deferred tax asset (liability)		1		(11)			1		15		(2)			4


Total other comprehensive income (loss)		(6)		492			1		429		—			916


Balance, June 30, 2025, net of tax	$	(6)	$	(1,951)		$	75	$	(2,899)	$	(767)		$	(5,548)



Balance, December 31, 2025, net of tax	$	(3)	$	(1,373)	$	87	$	(2,981)	$	(717)	$	(4,987)
Change in unrealized appreciation (depreciation) of investments		—		(564)		—		—		—		(564)
Change in other		—		(20)		—		—		—		(20)

Change in discount rates		—		—		13		—		—		13

Change in foreign currency translation adjustments		—		—		—		(123)		—		(123)
Change in net actuarial loss		—		—		—		—		14		14
Change in prior service cost		—		—		—		—		2		2
Change in deferred tax asset (liability)		—		76		(4)		(9)		(4)		59


Total other comprehensive income (loss)		—		(508)		9		(132)		12		(619)


Balance, June 30, 2026, net of tax	$	(3)	$	(1,881)	$	96	$	(3,113)	$	(705)	$	(5,606)



Balance, December 31, 2024, net of tax	$	(4)	$	(2,868)	$	68	$	(3,521)	$	(774)	$	(7,099)
Change in unrealized appreciation (depreciation) of investments		(3)		830		—		—		—		827
Change in other		—		(3)		—		—		—		(3)

Change in discount rates		—		—		9		—		—		9

Change in foreign currency translation adjustments		—		—		—		589		—		589
Change in net actuarial loss		—		—		—		—		10		10

Change in deferred tax asset (liability)		1		90		(2)		34		(3)		120


Total other comprehensive income (loss)		(2)		917		7		623		7		1,552

Less: Noncontrolling interests		—		—		—		1		—		1
Balance, June 30, 2025, net of tax	$	(6)	$	(1,951)	$	75	$	(2,899)	$	(767)	$	(5,548)


AIG \| Second Quarter 2026 Form 10-Q			37

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

The following table presents the other comprehensive income (loss) reclassification adjustments for the three and six months ended June 30, 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 June 30, 2026
Unrealized change arising during period	$	1	$	90		$	8	$	(4)	$	1		$	96
Less: Reclassification adjustments included in net income		—		(63)			—		—		(7)			(70)
Total other comprehensive income (loss), before income tax expense (benefit)		1		153			8		(4)		8			166
Less: Income tax expense (benefit)		—		45			3		7		2			57
Total other comprehensive income (loss), net of income tax expense (benefit)	$	1	$	108		$	5	$	(11)	$	6		$	109

Three Months Ended June 30, 2025
Unrealized change arising during period	$	(7)	$	352		$	—	$	414	$	(5)		$	754
Less: Reclassification adjustments included in net income		—		(151)			—		—		(7)			(158)
Total other comprehensive income (loss), before income tax expense (benefit)		(7)		503			—		414		2			912
Less: Income tax expense (benefit)		(1)		11			(1)		(15)		2			(4)
Total other comprehensive income (loss), net of income tax expense (benefit)	$	(6)	$	492		$	1	$	429	$	—		$	916



Six Months Ended June 30, 2026
Unrealized change arising during period	$	—	$	(777)	$	13	$	(123)	$	1	$	(886)
Less: Reclassification adjustments included in net income		—		(193)		—		—		(15)		(208)
Total other comprehensive income (loss), before of income tax expense (benefit)		—		(584)		13		(123)		16		(678)
Less: Income tax expense (benefit)		—		(76)		4		9		4		(59)
Total other comprehensive income (loss), net of income tax expense (benefit)	$	—	$	(508)	$	9	$	(132)	$	12	$	(619)


Six Months Ended June 30, 2025
Unrealized change arising during period	$	(3)	$	414	$	9	$	589	$	(5)	$	1,004
Less: Reclassification adjustments included in net income		—		(413)		—		—		(15)		(428)
Total other comprehensive income (loss), before income tax expense (benefit)		(3)		827		9		589		10		1,432
Less: Income tax expense (benefit)		(1)		(90)		2		(34)		3		(120)
Total other comprehensive income (loss), net of income tax expense (benefit)	$	(2)	$	917	$	7	$	623	$	7	$	1,552

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 June 30,				Six Months Ended June 30,				Condensed Consolidated
(in millions)		2026		2025		2026		2025		Statements of Income (Loss)



Unrealized appreciation (depreciation) of all other investments
Investments		(63)		(151)		(193)		(413)		Net realized gains (losses)
Total		(63)		(151)		(193)		(413)
Change in retirement plan liabilities adjustment
Prior-service credit		(1)		—		(2)		(1)		(b)
Actuarial losses		(6)		(7)		(13)		(14)		(b)
Total		(7)		(7)		(15)		(15)

Total reclassifications for the period	$	(70)	$	(158)	$	(208)	$	(428)

(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.


38			AIG \| Second Quarter 2026 Form 10-Q

ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 14. Earnings Per Common Share (EPS)

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 June 30,				Six Months Ended June 30,
(dollars in millions, except per common share data)	2026		2025		2026		2025
Numerator for EPS:
Net income	$	948	$	1,144	$	1,711	$	1,842
Less: Net income attributable to noncontrolling interests	—		—		—		—

Net income attributable to AIG common shareholders	$	948	$	1,144	$	1,711	$	1,842





Denominator for EPS:
Weighted average common shares outstanding - basic	529,539,714		572,817,409		533,775,623		583,272,826
Dilutive common shares	4,034,824		5,123,823		4,070,909		5,262,102
Weighted average common shares outstanding - diluted(a)	533,574,538		577,941,232		537,846,532		588,534,928
Net income per common share attributable to AIG common shareholders:



Basic	$	1.79	$	2.00	$	3.21	$	3.16



Diluted	$	1.78	$	1.98	$	3.18	$	3.13

(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 1,177,254 and 915,465 for the three and six months ended June 30, 2026, respectively, and 118,717 and 140,236 for the three and six months ended June 30, 2025, 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.

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.


AIG \| Second Quarter 2026 Form 10-Q			39

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

INTERIM TAX EXPENSE (BENEFIT)

For the three months ended June 30, 2026, the effective tax rate on income was 25.0 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 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 six months ended June 30, 2026, the effective tax rate on income was 24.0 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 June 30, 2025, the effective tax rate on income was 25.9 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, state and local income taxes, and an increase in deferred tax asset valuation allowance associated with certain foreign jurisdictions. 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 six months ended June 30, 2025, the effective tax rate on income was 26.4 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, state and local income taxes, and an increase in deferred tax asset valuation allowance associated with certain foreign jurisdictions. The charges are 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 six months ended June 30, 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 U.S. 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 June 30, 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 six months ended June 30, 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 increase was allocated to Other comprehensive income.

For the six months ended June 30, 2026, we recognized a net $7 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 New York State (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 six months ended June 30, 2026.


40			AIG \| Second Quarter 2026 Form 10-Q

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.


AIG \| Second Quarter 2026 Form 10-Q			41

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.


42			AIG \| Second Quarter 2026 Form 10-Q


INDEX TO ITEM 2
			Page
Executive Summary			44
Overview			44

Operating Structure			44
Critical Accounting Estimates			45
Consolidated Results of Operations			45
Business Segment Operations			46
General Insurance			47
Other Operations			52
Use of Non-GAAP Measures			53
Investments			57
Overview			57
Investment Highlights			58
Investment Strategies			58
Credit Ratings			63
Insurance Reserves			64
Loss Reserves			64
Liquidity and Capital Resources			67
Overview			67
Liquidity and Capital Resources Highlights			68
Analysis of Sources and Uses of Cash			68
Liquidity and Capital Resources of AIG Parent and Subsidiaries			69
Credit Facilities			69
Contractual Obligations			69
Off-Balance Sheet Arrangements and Commercial Commitments			69
Debt			70
Financial Strength Ratings			70
Credit Ratings			71
Regulation and Supervision			71
Dividends			71
Repurchases of AIG Common Stock			71
Enterprise Risk Management			72







Glossary			73
Acronyms			75


AIG \| Second Quarter 2026 Form 10-Q			43

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.


44			AIG \| Second Quarter 2026 Form 10-Q

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 and six months ended June 30, 2026 and 2025. Factors that relate primarily to a specific business are discussed in more detail within the business segment operations section.

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



	Three Months Ended June 30,				Percentage		Six Months Ended June 30,				Percentage
(in millions)	2026		2025		Change		2026		2025			Change

Revenues:
Premiums	$	6,221	$	5,877	6	%	$	12,293	$	11,647		6	%
Net investment income:
Net investment income - excluding Fortitude Re funds withheld assets	1,091		1,427		(24)		1,780		2,492			(29)
Net investment income - Fortitude Re funds withheld assets	36		39		(8)		59		79			(25)
Total net investment income	1,127		1,466		(23)		1,839		2,571			(28)
Net realized losses:
Net realized losses - excluding Fortitude Re funds withheld assets and embedded derivative	(208)		(192)		(8)		(340)		(252)			(35)
Net realized losses on Fortitude Re funds withheld assets	(6)		(52)		88		(19)		(54)			65
Net realized losses on Fortitude Re funds withheld embedded derivative	(51)		(14)		(264)		(41)		(55)			25
Total net realized losses	(265)		(258)		(3)		(400)		(361)			(11)
Other income	2		6		(67)		3		17			(82)
Total revenues	7,085		7,091		—		13,735		13,874			(1)
Benefits, losses and expenses:
Losses and loss adjustment expenses incurred	3,584		3,493		3		7,059		7,287			(3)
Amortization of deferred policy acquisition costs	900		847		6		1,724		1,672			3
General operating and other expenses	1,231		1,162		6		2,368		2,277			4
Interest expense	100		100		—		200		192			4
(Gain) loss on extinguishment of debt	—		(5)		NM		—		(5)			NM
Net (gain) loss on divestitures and other	6		(50)		NM		133		(53)			NM
Total benefits, losses and expenses	5,821		5,547		5		11,484		11,370			1


AIG \| Second Quarter 2026 Form 10-Q			45

ITEM 2 | Consolidated Results of Operations



	Three Months Ended June 30,				Percentage		Six Months Ended June 30,				Percentage
(in millions)	2026		2025		Change		2026		2025			Change

Income before income tax expense	1,264		1,544		(18)		2,251		2,504			(10)



Income tax expense	316		400		(21)		540		662			(18)


Net income	948		1,144		(17)		1,711		1,842			(7)
Less: Net income attributable to noncontrolling interests	—		—		NM		—		—			NM


Net income attributable to AIG common shareholders	$	948	$	1,144	(17)	%	$	1,711	$	1,842		(7)	%

NET INCOME (LOSS) ATTRIBUTABLE TO AIG COMMON SHAREHOLDERS

Three Months Ended June 30, 2026 and 2025 Comparison

Net income (loss) attributable to AIG common shareholders decreased $196 million due to the following:

lower Net investment income of $339 million primarily due to changes in the fair value of AIG's investments in Corebridge and Equity securities of $295 million and lower income on Alternative investments and Mortgage loans of $53 million, partially offset by higher income from available for sale fixed maturity securities of $29 million. For additional information, see Note 5 to the Condensed Consolidated Financial Statements; and
higher underwriting income primarily driven by higher net favorable prior year reserve development of $33 million. For additional information, see Business Segment Operations – General Insurance.

Six Months Ended June 30, 2026 and 2025 Comparison

Net income (loss) attributable to AIG common shareholders decreased $131 million primarily driven by:

lower Net investment income of $732 million primarily due to changes in the fair value of AIG's investments in Corebridge and Equity securities of $744 million and lower income on Alternative investments and Mortgage loans of $101 million, partially offset by higher income from available for sale fixed maturity securities of $132 million. For additional information, see Note 5 to the Condensed Consolidated Financial Statements; and
higher underwriting income primarily driven by lower catastrophe losses of $305 million and higher net favorable prior year reserve development of $101 million. For additional information, see Business Segment Operations – General Insurance.

Business Segment Operations


46			AIG \| Second Quarter 2026 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance


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 June 30,						Six Months Ended June 30,
(in millions)		2026		2025	Change			2026		2025	Change
Underwriting results:
Net premiums written	$	7,516	$	6,880	9	%	$	13,115	$	11,406	15	%
Net premiums written, on constant dollar basis					9						13
(Increase) decrease in unearned premiums		(1,320)		(1,002)	(32)			(867)		241	NM
Net premiums earned		6,196		5,878	5			12,248		11,647	5
Losses and loss adjustment expenses incurred(a)		3,605		3,428	5			7,114		7,194	(1)
Acquisition expenses:
Amortization of deferred policy acquisition costs		894		846	6			1,712		1,671	2
Other acquisition expenses		220		201	9			453		433	5
Total acquisition expenses		1,114		1,047	6			2,165		2,104	3
General operating expenses		791		777	2			1,509		1,480	2
Underwriting income		686		626	10			1,460		869	68
Net investment income		871		871	—			1,735		1,607	8
Amortization of intangible assets including renewal rights(b)		(11)		(5)	(120)			(21)		(9)	(133)
Adjusted pre-tax income	$	1,546	$	1,492	4	%	$	3,174	$	2,467	29	%
Loss ratio(a)		58.2		58.3	(0.1)			58.1		61.8	(3.7)
Acquisition ratio		18.0		17.8	0.2			17.7		18.1	(0.4)
General operating expense ratio		12.8		13.2	(0.4)			12.3		12.7	(0.4)
Expense ratio		30.8		31.0	(0.2)			30.0		30.8	(0.8)
Combined ratio(a)		89.0		89.3	(0.3)			88.1		92.6	(4.5)
Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:
Catastrophe losses and reinstatement premiums		(3.4)		(2.9)	(0.5)			(3.2)		(6.0)	2.8
Prior year development, net of prior year premiums		2.5		2.0	0.5			2.4		1.6	0.8
Accident year loss ratio, as adjusted		57.3		57.4	(0.1)			57.3		57.4	(0.1)
Accident year combined ratio, as adjusted		88.1		88.4	(0.3)			87.3		88.2	(0.9)

(a)Consistent with our definition of Adjusted pre-tax income (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 June 30, 2026
Flooding, rainstorms and other(b)	$	42	$	82	$	8	$	132
Windstorms and hailstorms	37		2		7		46
Winter storms	15		3		12		30


Reinstatement premiums	—		2		—		2
Total catastrophe-related charges	$	94	$	89	$	27	$	210


Three Months Ended June 30, 2025

Windstorms and hailstorms	$	79	$	6	$	39	$	124
Winter storms	24		—		1		25
Wildfires	(2)		(1)		(2)		(5)
Earthquakes	—		24		2		26

Total catastrophe-related charges	$	101	$	29	$	40	$	170


AIG \| Second Quarter 2026 Form 10-Q			47

ITEM 2 | Business Segment Operations | General Insurance


(dollars in millions)	North America Commercial		International Commercial		Global Personal		Total
Six Months Ended June 30, 2026
Flooding, rainstorms and other	$	42	$	109	$	9	$	160
Windstorms and hailstorms	37		18		7		62
Winter storms	123		4		39		166



Reinstatement premiums	—		2		—		2
Total catastrophe-related charges	$	202	$	133	$	55	$	390
Six Months Ended June 30, 2025

Windstorms and hailstorms	$	104	$	7	$	41	$	152
Winter storms	36		—		1		37
Wildfires	214		49		192		455
Earthquakes	—		44		2		46
Reinstatement premiums	5		(1)		1		5
Total catastrophe-related charges	$	359	$	99	$	237	$	695

(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.

(b)Includes net losses related to the Middle East conflict of $75 million in the three months ended June 30, 2026.

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 June 30,						Six Months Ended June 30,
(in millions)	2026		2025		Change		2026		2025		Change
Underwriting results:
Net premiums written	$	3,125	$	2,863	9	%	$	4,730	$	4,037	17	%
Net premiums written, on constant dollar basis					9						17
(Increase) decrease in unearned premiums	(801)		(730)		(10)		(153)		220		NM
Net premiums earned	2,324		2,133		9		4,577		4,257		8
Losses and loss adjustment expenses incurred(a)	1,410		1,340		5		2,831		2,866		(1)
Acquisition expenses:
Amortization of deferred policy acquisition costs	248		206		20		461		433		6
Other acquisition expenses	38		46		(17)		106		93		14
Total acquisition expenses	286		252		13		567		526		8
General operating expenses	256		240		7		480		435		10
Underwriting income	$	372	$	301	24	%	$	699	$	430	63	%
Loss ratio(a)	60.7		62.8		(2.1)		61.9		67.3		(5.4)
Acquisition ratio	12.3		11.8		0.5		12.4		12.4		—
General operating expense ratio	11.0		11.3		(0.3)		10.5		10.2		0.3
Expense ratio	23.3		23.1		0.2		22.9		22.6		0.3
Combined ratio(a)	84.0		85.9		(1.9)		84.8		89.9		(5.1)
Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:
Catastrophe losses and reinstatement premiums	(4.1)		(4.7)		0.6		(4.5)		(8.4)		3.9
Prior year development, net of prior year premiums	6.8		5.0		1.8		5.8		3.8		2.0

Accident year loss ratio, as adjusted	63.4		63.1		0.3		63.2		62.7		0.5
Accident year combined ratio, as adjusted	86.7		86.2		0.5		86.1		85.3		0.8

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

Premiums Three Months Ended June 30, 2026 and 2025 Comparison

Net premiums written increased by $262 million, or 9 percent, primarily due to the impact of strategic transactions and organic growth, notably in Casualty and Financial Lines, partially offset by lower production in certain Property lines. The increase in Net premiums earned is primarily driven by these same factors.


48			AIG \| Second Quarter 2026 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance

Premiums Six Months Ended June 30, 2026 and 2025 Comparison

Net premiums written increased by $693 million, or 17 percent, primarily due to the impact of strategic transactions, reinsurance program changes and organic growth, notably in Casualty, Property and Financial Lines. The increase in Net premiums earned is primarily driven by these same factors.

Underwriting Results Three Months Ended June 30, 2026 and 2025 Comparison

North America Commercial produced underwriting income of $372 million from a combined ratio of 84.0, which was a 1.9 point improvement. This was driven by a lower loss ratio (2.1 points) from:

higher net favorable prior year reserve development (1.8 points), with favorable development driven by Casualty; and
lower catastrophe losses (0.6 points).

This was partially offset by a higher accident year loss ratio, as adjusted (0.3 points) primarily due to changes in business mix.

The expense ratio increased by 0.2 points, as a primarily mix-driven increase in the acquisition ratio (0.5 points) more than offset a lower general operating expense ratio (0.3 points).

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

Underwriting Results Six Months Ended June 30, 2026 and 2025 Comparison

North America Commercial produced underwriting income of $699 million from a combined ratio of 84.8, which was a 5.1 point improvement. This was driven by a lower loss ratio (5.4 points) from:

lower catastrophe losses (3.9 points); and
higher net favorable prior year reserve development (2.0 points), with favorable development primarily driven by Casualty and Property.

This was partially offset by a higher accident year loss ratio, as adjusted (0.5 points) primarily due to changes in business mix.

The expense ratio increased by 0.3 points from an increase in the general operating expense ratio (0.3 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 June 30,						Six Months Ended June 30,
(in millions)	2026		2025		Change		2026		2025		Change
Underwriting results:
Net premiums written	$	2,588	$	2,325	11	%	$	5,038	$	4,352	16	%
Net premiums written, on constant dollar basis					10						11
Increase in unearned premiums	(316)		(201)		(57)		(579)		(177)		(227)
Net premiums earned	2,272		2,124		7		4,459		4,175		7
Losses and loss adjustment expenses incurred	1,344		1,170		15		2,590		2,348		10
Acquisition expenses:
Amortization of deferred policy acquisition costs	304		269		13		582		514		13
Other acquisition expenses	102		84		21		187		178		5
Total acquisition expenses	406		353		15		769		692		11
General operating expenses	322		301		7		622		595		5
Underwriting income	$	200	$	300	(33)	%	$	478	$	540	(11)	%
Loss ratio	59.2		55.1		4.1		58.1		56.2		1.9
Acquisition ratio	17.9		16.6		1.3		17.2		16.6		0.6
General operating expense ratio	14.2		14.2		—		13.9		14.3		(0.4)
Expense ratio	32.1		30.8		1.3		31.1		30.9		0.2
Combined ratio	91.3		85.9		5.4		89.2		87.1		2.1


AIG \| Second Quarter 2026 Form 10-Q			49

ITEM 2 | Business Segment Operations | General Insurance



	Three Months Ended June 30,			Six Months Ended June 30,
(in millions)	2026	2025	Change	2026	2025	Change
Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:
Catastrophe losses and reinstatement premiums	(3.9)	(1.4)	(2.5)	(3.0)	(2.3)	(0.7)
Prior year development, net of prior year premiums	(0.1)	0.5	(0.6)	(0.1)	0.5	(0.6)
Accident year loss ratio, as adjusted	55.2	54.2	1.0	55.0	54.4	0.6
Accident year combined ratio, as adjusted	87.3	85.0	2.3	86.1	85.3	0.8

Premiums Three Months Ended June 30, 2026 and 2025 Comparison

Net premiums written, excluding the favorable impact of foreign exchange ($38 million), increased by $225 million, or 10 percent, primarily due to the impact of strategic transactions and organic growth, notably in Specialty and Property. The increase in Net premiums earned is primarily driven by these same factors.

Premiums Six Months Ended June 30, 2026 and 2025 Comparison

Net premiums written, excluding the favorable impact of foreign exchange ($200 million), increased by $486 million, or 11 percent, primarily due to the impact of strategic transactions, reinsurance program changes and organic growth, notably in Property, Casualty and Specialty. The increase in Net premiums earned is primarily driven by these same factors.

Underwriting Results Three Months Ended June 30, 2026 and 2025 Comparison

International Commercial produced underwriting income of $200 million from a combined ratio of 91.3, which was a 5.4 point increase. This was driven by a higher loss ratio (4.1 points) from:

higher catastrophe losses (2.5 points);
higher accident year loss ratio, as adjusted (1.0 points) primarily due to changes in business mix; and
net adverse prior year reserve development (0.6 points), with unfavorable development driven by prior year premiums.

The expense ratio increased by 1.3 points, from a primarily mix-driven increase in the acquisition ratio (1.3 points).

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

Underwriting Results Six Months Ended June 30, 2026 and 2025 Comparison

International Commercial produced underwriting income of $478 million from a combined ratio of 89.2, which was a 2.1 point increase. This was driven by a higher loss ratio (1.9 points) from:

higher catastrophe losses (0.7 points);
higher accident year loss ratio, as adjusted (0.6 points) primarily due to changes in business mix; and
net adverse prior year reserve development (0.6 points), with unfavorable development driven by prior year premiums.

The expense ratio increased by 0.2 points, as a primarily mix-driven increase in the acquisition ratio (0.6 points) was partially offset by a lower general operating expense ratio (0.4 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.


50			AIG \| Second Quarter 2026 Form 10-Q

ITEM 2 | Business Segment Operations | General Insurance



	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2026		2025		Change		2026		2025		Change
Underwriting results:
Net premiums written	$	1,803	$	1,692	7	%	$	3,347	$	3,017	11	%
Net premiums written, on constant dollar basis					8						9
(Increase) decrease in unearned premiums	(203)		(71)		(186)		(135)		198		NM
Net premiums earned	1,600		1,621		(1)		3,212		3,215		—
Losses and loss adjustment expenses incurred	851		918		(7)		1,693		1,980		(14)
Acquisition expenses:
Amortization of deferred policy acquisition costs	342		371		(8)		669		724		(8)
Other acquisition expenses	80		71		13		160		162		(1)
Total acquisition expenses	422		442		(5)		829		886		(6)
General operating expenses	213		236		(10)		407		450		(10)
Underwriting income (loss)	$	114	$	25	356	%	$	283	$	(101)	NM	%
Loss ratio	53.2		56.6		(3.4)		52.7		61.6		(8.9)
Acquisition ratio	26.4		27.3		(0.9)		25.8		27.6		(1.8)
General operating expense ratio	13.3		14.6		(1.3)		12.7		14.0		(1.3)
Expense ratio	39.7		41.9		(2.2)		38.5		41.6		(3.1)
Combined ratio	92.9		98.5		(5.6)		91.2		103.2		(12.0)
Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted:
Catastrophe losses and reinstatement premiums	(1.7)		(2.4)		0.7		(1.7)		(7.4)		5.7
Prior year development, net of prior year premiums	—		—		—		1.1		0.1		1.0
Accident year loss ratio, as adjusted	51.5		54.2		(2.7)		52.1		54.3		(2.2)
Accident year combined ratio, as adjusted	91.2		96.1		(4.9)		90.6		95.9		(5.3)

Premiums Three Months Ended June 30, 2026 and 2025 Comparison

Net premiums written, excluding the unfavorable impact of foreign exchange ($15 million), increased by $126 million, or 8 percent, primarily driven by reinsurance program changes and organic growth in U.S. high net worth and Accident & Health. The decrease in Net premiums earned was primarily driven by Warranty.

Premiums Six Months Ended June 30, 2026 and 2025 Comparison

Net premiums written, excluding the favorable impact of foreign exchange ($45 million) increased by $285 million, or 9 percent, primarily driven by reinsurance program changes and organic growth in U.S. high net worth and Accident & Health. The decrease in Net premiums earned was primarily driven by Warranty.

Underwriting Results Three Months Ended June 30, 2026 and 2025 Comparison

Global Personal produced underwriting income of $114 million from a combined ratio of 92.9, which was a 5.6 point improvement. This was driven by a lower loss ratio (3.4 points) from:

lower accident year loss ratio, as adjusted (2.7 points) primarily due to changes in business mix; and
lower catastrophe losses (0.7 points).

The expense ratio improved by 2.2 points, reflecting a lower acquisition ratio (0.9 points) primarily driven by changes in business mix and improved commission terms and a lower general operating expense ratio (1.3 points).

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

Underwriting Results Six Months Ended June 30, 2026 and 2025 Comparison

Global Personal produced underwriting income of $283 million from a combined ratio of 91.2, which was an 12.0 point improvement. This was driven by a lower loss ratio (8.9 points) from:

lower catastrophe losses (5.7 points);
lower accident year loss ratio, as adjusted (2.2 points) primarily due to changes in business mix; and
higher net favorable prior year reserve development (1.0 points), with favorable development driven by prior year premiums.

The expense ratio improved by 3.1 points, reflecting a lower acquisition ratio (1.8 points), primarily driven by changes in business mix and improved commission terms, and a lower general operating expense ratio (1.3 points).

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


AIG \| Second Quarter 2026 Form 10-Q			51

ITEM 2 | Business Segment Operations | Other Operations


Other Operations

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


OTHER OPERATIONS



		Three Months Ended June 30,						Six Months Ended June 30,
(in millions)		2026		2025	Change			2026		2025	Change
Net investment income and other	$	39	$	92	(58)	%	$	93	$	202	(54)	%
Benefits, losses and expenses:
Corporate and other general operating expenses		82		90	(9)			161		175	(8)

Interest expense		99		101	(2)			199		192	4
Total benefits, losses and expenses*		181		191	(5)			360		367	(2)
Adjusted pre-tax loss before consolidation and eliminations		(142)		(99)	(43)			(267)		(165)	(62)
Consolidation and eliminations		—		(2)	NM			—		(2)	NM
Adjusted pre-tax loss	$	(142)	$	(101)	(41)	%	$	(267)	$	(167)	(60)	%

*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 June 30, 2026 and 2025 Comparison

Adjusted pre-tax loss before consolidation and eliminations increased $43 million primarily due to the following:

lower net investment income and other of $53 million due to lower short-term investment income and lower Corebridge dividend income of $27 million; and
lower corporate and other general operating expenses of $8 million.

Six Months Ended June 30, 2026 and 2025 Comparison

Adjusted pre-tax loss before consolidation and eliminations increased $102 million primarily due to the following:

lower net investment income and other of $109 million due to lower short-term investment income and lower Corebridge dividend income of $52 million; and
higher interest expense of $7 million primarily driven by new debt issuance of $1.25 billion in 2025 partially offset by interest savings from $0.8 billion debt repurchases, through cash tender offers and debt redemption in 2025.


52			AIG \| Second Quarter 2026 Form 10-Q

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.


AIG \| Second Quarter 2026 Form 10-Q			53

Previous: Cover and table of contents · Next: Item 2. Use of Non-GAAP Measures