Schedule II Condensed Financial Information of Registrant - Parent Company Only

12 Months Ended

Dec. 31, 2021

INFORMATION PROVIDED IN CONNECTION WITH OUTSTADING DEBT

Schedule II Condensed Financial Information of Registrant - Parent Company Only

Condensed Financial Information of Registrant

Balance Sheets – Parent Company Only

		Schedule II
December 31,
(in millions)		2021		2020
Assets:
Short-term investments	$	4,332	$	6,918
Other investments		6,671		4,227
Total investments		11,003		11,145
Cash		3		3
Loans to subsidiaries(a)		45,415		36,981
Due from affiliates - net(a)		1,941		1,531
Intercompany tax receivable(a)		426		978
Deferred income taxes		5,845		8,525
Investment in consolidated subsidiaries(a)		29,713		41,294
Other assets(b)		406		313
Total assets	$	94,752	$	100,770
Liabilities:
Due to affiliates(a)	$	2,992	$	3,224
Intercompany tax payable(a)		2,193		2,669
Notes and bonds payable		19,633		23,068
Junior subordinated debt		1,164		1,561
Series AIGFP matched notes and bonds payable		18		21
Loans from subsidiaries(a)		739		735
Other liabilities		2,057		3,130
Total liabilities		28,796		34,408
AIG Shareholders’ equity:
Preferred stock		485		485
Common stock		4,766		4,766
Treasury stock		(51,618)		(49,322)
Additional paid-in capital		81,851		81,418
Retained earnings		23,785		15,504
Accumulated other comprehensive income		6,687		13,511
Total AIG shareholders’ equity		65,956		66,362
Total liabilities and equity	$	94,752	$	100,770

(a) Eliminated in consolidation.

(b) At December 31, 2021 and 2020, included restricted cash of $1 million and $1 million, respectively.

See accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Income – Parent Company Only
				Schedule II
Years Ended December 31,
(in millions)		2021		2020		2019
Revenues:
Equity in undistributed net income (loss) of consolidated subsidiaries(a)	$	(3,370)	$	(2,569)	$	44
Dividend income from consolidated subsidiaries(a)		14,699		1,797		3,819
Interest income(b)		169		348		1,034
Net realized losses		(1)		(149)		(3)
Other income (loss)		(3)		(1)		125
Expenses:
Interest expense		948		1,043		985
Net loss on extinguishment of debt		304		2		-
Net (gain) loss on divestitures		(10)		4,010		1
Other expenses		1,214		980		728
Income (loss) from continuing operations before income tax benefit		9,038		(6,609)		3,305
Income tax benefit		(350)		(667)		(45)
Net income (loss)		9,388		(5,942)		3,350
Loss from discontinued operations		-		(2)		(2)
Net income (loss) attributable to AIG Parent Company	$	9,388	$	(5,944)	$	3,348

(a)Eliminated in consolidation.

(b) Includes interest income on intercompany borrowings of $131 million, $295 million and $904 million on December 31, 2021, 2020 and 2019, respectively, eliminated in consolidation.

See accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Comprehensive Income – Parent Company Only
				Schedule II
Years Ended December 31,
(in millions)		2021		2020		2019
Net income (loss)	$	9,388	$	(5,944)	$	3,348
Other comprehensive income (loss)		(5,725)		8,529		6,395
Total comprehensive income attributable to AIG	$	3,663	$	2,585	$	9,743
See accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Cash Flows – Parent Company Only
				Schedule II
Years Ended December 31,
(in millions)		2021		2020		2019
Net cash provided by (used in) operating activities	$	3,837	$	(30)	$	3,484
Cash flows from investing activities:
Sales and maturities of investments		4,228		5,181		2,313
Sales of divested businesses		-		2,225		-
Purchase of investments		(5,761)		(3,250)		(2,957)
Net change in short-term investments		2,647		(3,559)		(2,170)
Contributions from (to) subsidiaries - net		403		(964)		(237)
Loans to subsidiaries - net		(104)		(22)		513
Other, net		(41)		(402)		67
Net cash provided by (used in) investing activities		1,372		(791)		(2,471)
Cash flows from financing activities:
Issuance of long-term debt		-		4,065		595
Repayments of long-term debt		(3,703)		(1,696)		(1,006)
Issuance of preferred stock		-		-		485
Cash dividends paid on preferred stock		(29)		(29)		(22)
Cash dividends paid on common stock		(1,083)		(1,103)		(1,114)
Loans from subsidiaries - net		3		16		93
Purchase of common stock		(2,598)		(500)		-
Other, net		2,201		(33)		(66)
Net cash provided by (used in) financing activities		(5,209)		720		(1,035)
Change in cash and restricted cash		-		(101)		(22)
Cash and restricted cash at beginning of year		4		105		127
Cash and restricted cash at end of year	$	4	$	4	$	105
Supplementary disclosure of cash flow information:
	Years Ended December 31,
(in millions)		2021		2020		2019
Cash	$	3	$	3	$	2
Restricted cash included in Short-term investments		-		-		102
Restricted cash included in Other assets		1		1		1
Total cash and restricted cash shown in Statements of Cash Flows – Parent Company Only	$	4	$	4	$	105
Cash (paid) received during the period for:
Interest:
Third party	$	(941)	$	(1,014)	$	(941)
Intercompany		1		-		(3)
Taxes:
Income tax authorities		(494)		(466)		(11)
Intercompany		1,950		1,592		1,179
Intercompany non-cash financing and investing activities:
Capital contributions		2,284		333		15
Return of capital		1,365		-		15
Dividend received in the form of intercompany note		8,300		-		-
Dividends received in the form of securities		1,289		879		702
See accompanying Notes to Condensed Financial Information of Registrant.

Notes to Condensed Financial Information of Registrant

American International Group, Inc.’s (the Registrant) investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The accompanying condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto of American International Group, Inc. and subsidiaries included in the Registrant’s 2021 Annual Report on Form 10-K for the year ended December 31, 2021 (Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 17, 2022.

The Registrant includes in its Statement of Income dividends from its subsidiaries and equity in undistributed income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.

The five-year debt maturity schedule is incorporated by reference from Note 14 to Consolidated Financial Statements.

The Registrant files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Registrant and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated Federal income taxes. Amounts allocated to the subsidiaries under the written agreement are included in Due from affiliates in the accompanying Condensed Balance Sheets.

Income taxes in the accompanying Condensed Balance Sheets are composed of the Registrant’s current and deferred tax assets, the consolidated group’s current income tax receivable and deferred taxes related to tax attribute carryforwards of AIG’s U.S. consolidated federal income tax group.

For additional information see Note 21 to the Consolidated Financial Statements.

The consolidated U.S. deferred tax asset for net operating loss and tax credit carryforwards are recorded by the Parent Company, which files the consolidated U.S. Federal income tax return, and are not allocated to its subsidiaries. Generally, as, and if, the consolidated net operating losses and other tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries.