SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2021

SEGMENT INFORMATION

SEGMENT INFORMATION

3. Segment Information

We report our results of operations consistent with the manner in which our chief operating decision makers review the business to assess performance and allocate resources, as follows:

General Insurance

General Insurance business is presented as two operating segments:

 North America – consists of insurance businesses in the United States, Canada and Bermuda, and our global reinsurance business, AIG Re. This also includes the results of Western World Insurance Group, Inc. and Glatfelter Insurance Group.

 International – consists of regional insurance businesses in Japan, the United Kingdom, Europe, Middle East and Africa (EMEA region), Asia Pacific, Latin America and Caribbean, and China. International also includes the results of Talbot Holdings, Ltd. as well as AIG’s Global Specialty business.

North America and International operating segments consist of the following products:

–Commercial Lines – consists of Liability, Financial Lines, Property and Global Specialty.

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

Life and Retirement

Life and Retirement business is presented as four operating segments:

 Individual Retirement – consists of fixed annuities, fixed index annuities, variable annuities and retail mutual funds.

 Group Retirement – consists of group mutual funds, group annuities, individual annuity and investment products, financial planning and advisory services, and plan administrative and compliance services.

 Life Insurance – primary products in the U.S. include term life and universal life insurance. International operations include distribution of life and health products in the UK and Ireland.

 Institutional Markets – consists of stable value wrap products, structured settlement and pension risk transfer annuities, corporate- and bank-owned life insurance, high net worth products and guaranteed investment contracts (GICs).

For further discussion on the Life and Retirement business, see Note 1 to the Condensed Consolidated Financial Statements.

Other Operations

Other Operations primarily consists of income from assets held by AIG Parent and other corporate subsidiaries, deferred tax assets related to tax attributes, corporate expenses and intercompany eliminations, our institutional asset management business and results of our consolidated investment entities, General Insurance portfolios in run-off as well as the historical results of our legacy insurance lines ceded to Fortitude Re.

We evaluate segment performance based on adjusted revenues and adjusted pre-tax income (loss). Adjusted revenues and adjusted pre-tax income (loss) are derived by excluding certain items from total revenues and net income (loss) attributable to AIG, respectively. These items generally fall into one or more of the following broad categories: legacy matters having no relevance to our current businesses or operating performance; adjustments to enhance transparency to the underlying economics of transactions; and measures that we believe to be common to the industry. Legal entities are attributed to each segment based upon the predominance of activity in that legal entity. For the items excluded from adjusted revenues and adjusted pre-tax income (loss) see the table below.

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

Three Months Ended June 30,	2021					2020
				Adjusted					Adjusted
		Adjusted		Pre-tax			Adjusted		Pre-tax
(in millions)		Revenues		Income (Loss)			Revenues		Income (Loss)
General Insurance
North America	$	2,685	$	169	(a)	$	2,474	$	(439)	(a)
International		3,530		294	(a)		3,263		96	(a)
Net investment income		731		731			518		518
Total General Insurance		6,946		1,194			6,255		175
Life and Retirement
Individual Retirement		1,519		617			1,331		549
Group Retirement		820		347			712		214
Life Insurance		1,295		20			1,219		2
Institutional Markets		1,412		140			1,399		130
Total Life and Retirement		5,046		1,124			4,661		895
Other Operations
Other Operations before consolidation and eliminations		259		(516)			607		(332)
AIG consolidation and eliminations		(125)		(94)			35		53
Total Other Operations		134		(610)			642		(279)
Total		12,126		1,708			11,558		791
Reconciling items to pre-tax income (loss):
Changes in fair value of securities used to hedge guaranteed living benefits		14		13			14		16
Changes in benefit reserves and DAC, VOBA and SIA related to net
realized gains (losses)		-		120			-		255
Changes in the fair value of equity securities		(13)		(13)			56		56
Other income (expense) - net		(2)		-			14		-
Loss on extinguishment of debt		-		(106)			-		-
Net investment income on Fortitude Re funds withheld assets		507		507			116		116
Net realized gains on Fortitude Re funds withheld assets		173		173			96		96
Net realized losses on Fortitude Re funds withheld
embedded derivative		(2,056)		(2,056)			(837)		(837)
Net realized losses(b)		(68)		(59)			(1,621)		(1,607)
Loss from divested businesses		-		(1)			-		(8,412)
Non-operating litigation reserves and settlements		-		-			-		-
Favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		65			-		33
Net loss reserve discount charge		-		(22)			-		(16)
Integration and transaction costs associated with acquiring or divesting
businesses		-		(35)			-		(4)
Restructuring and other costs		-		(126)			-		(134)
Non-recurring costs related to regulatory or accounting changes		-		(21)			-		(14)
Revenues and pre-tax income (loss)	$	10,681	$	147		$	9,396	$	(9,661)

Six Months Ended June 30,	2021					2020
				Adjusted					Adjusted
		Adjusted		Pre-tax			Adjusted		Pre-tax
(in millions)		Revenues		Income (Loss)			Revenues		Income (Loss)
General Insurance
North America	$	5,073	$	(33)	(a)	$	5,205	$	(542)	(a)
International		7,008		569	(a)		6,611		112	(a)
Net investment income		1,503		1,503			1,106		1,106
Total General Insurance		13,584		2,039			12,922		676
Life and Retirement
Individual Retirement		2,996		1,149			2,699		854
Group Retirement		1,626		654			1,406		357
Life Insurance		2,628		(20)			2,419		80
Institutional Markets		1,776		282			2,423		205
Total Life and Retirement		9,026		2,065			8,947		1,496
Other Operations
Other Operations before consolidation and eliminations		583		(870)			922		(1,167)
AIG consolidation and eliminations		(305)		(270)			(106)		(34)
Total Other Operations		278		(1,140)			816		(1,201)
Total		22,888		2,964			22,685		971
Reconciling items to pre-tax income (loss):
Changes in fair value of securities used to hedge guaranteed living benefits		32		35			28		9
Changes in benefit reserves and DAC, VOBA and SIA related to net
realized gains (losses)		-		(83)			-		(283)
Changes in the fair value of equity securities		9		9			(135)		(135)
Other income (expense) - net		(8)		-			24		-
Loss on extinguishment of debt		-		(98)			-		(17)
Net investment income on Fortitude Re funds withheld assets		993		993			116		116
Net realized gains on Fortitude Re funds withheld assets		346		346			96		96
Net realized gains (losses) on Fortitude Re funds withheld
embedded derivative		326		326			(837)		(837)
Net realized gains(b)		549		568			1,856		1,887
Income (loss) from divested businesses		-		6			-		(8,628)
Non-operating litigation reserves and settlements		-		-			6		6
Favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		84			-		41
Net loss reserve discount benefit (charge)		-		10			-		(72)
Integration and transaction costs associated with acquiring or divesting
businesses		-		(44)			-		(6)
Restructuring and other costs		-		(200)			-		(224)
Non-recurring costs related to regulatory or accounting changes		-		(41)			-		(27)
Revenues and pre-tax income (loss)	$	25,135	$	4,875		$	23,839	$	(7,103)

(a) General Insurance North America’s and General Insurance International’s Adjusted pre-tax income does not include Net investment income as the investment portfolio results are managed at the General Insurance level. Net investment income is shown separately as a component of General Insurance’s total Adjusted pre-tax income results.

(b) 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).