AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 18/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Global reach and tailored capabilities are established, but their superiority, replication barriers and economic advantage over peers are not demonstrated.
durability · — · Repeated underwriting profits support operating competence, but do not establish the duration of a structural competitive advantage.
customer dependency · — · Renewal demand demonstrates repeat business without establishing customer dependence or material switching friction.
erosion resilience · — · Mixed segment outcomes and distributor flexibility leave resilience of any competitive advantage unestablished. Generic competition disclosures alone do not establish no moat.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Historical operating commentary describes price increases across most North America Commercial lines alongside rate pressure from returning capacity. This is mixed observed market evidence, without a current AIG-specific rate series or proof of proprietary pricing power.
retention · 2/4 · International Commercial's 2025 premium growth was partly driven by renewal retention. This supports repeat demand, but the contribution is qualitative and does not establish retention at higher prices or customer lock-in.
margin resilience · 2/4 · Global Personal improved both reported and adjusted accident-year underwriting results in first-half 2026. International Commercial deteriorated in 2025, while North America Commercial's recent improvement largely reflected favorable development and lower catastrophes. These are mixed underwriting outcomes, not standalone proof of pricing power.
contractual freedom · 2/4 · Insurers compete through risk acceptance, pricing and terms, indicating commercial discretion. Regulatory approval of rates and policy language and distributor renegotiation rights constrain that discretion; product-specific freedom is not quantified.
Predictability58
Financial-sector stability over five consecutive reported annual periods: equal weights for nondeclining revenue frequency, revenue-growth volatility (5–40pp), positive consolidated earnings frequency, and net-income/revenue margin volatility (3–20pp). Uses reported accounting scope; not industrial FCF or a growth forecast.
- Nondeclining revenue years (%)
- 25.00
- Revenue growth volatility (pp)
- 18.91
- positiveEarningsShare
- 80.00
- netMarginStdDev
- 8.59
Financial strength56
Qualitative insurance assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-industry-1; not an industrial ratio score or credit rating.
capital adequacy · 2/4 · All insurance subsidiaries individually exceeded applicable statutory minima at December 2025, and domestic subsidiaries exceeded minimum RBC levels. Domestic minimum capital uses the greater of the regulatory-action RBC level or state minimum requirements; EU operations face Solvency II. Compliance is demonstrated, but actual solvency buffers and ratios are missing, limiting assessment of current loss-absorption capacity.
liquidity funding · 3/4 · June 2026 parent liquidity sources totaled $7.4 billion, including the $3.0 billion revolving facility, which remained available. First-half consolidated operating cash generation was positive. Liquidity declined from December, and upstream subsidiary payments face regulatory restrictions; the facility is not additional to the reported liquidity total.
asset liability risk · 2/4 · Favorable aggregate reserve development, improved commercial mortgage delinquency measures and predominantly investment-grade reserve backing support risk management. Persistent unfavorable development in some casualty lines, sizeable reinsurance recoverables, partially collateralized policyholder deductibles and illiquid investment commitments create material counterweights. Matching strategy is disclosed, but matching effectiveness and reinsurance recoverability are incompletely evidenced.
earnings resilience · 2/4 · Continuing operations remained profitable across 2023–2025 and first-half 2026 reported positive net income. Consolidated earnings nevertheless included a 2024 loss associated with discontinued operations, investment losses and meaningful catastrophe and reserve-development effects. Resilience is demonstrated but mixed across the disclosed accounting scope.
Capital allocation56
Qualitative insurance assessment: equal-weight average of four current evidence-backed grades (0–4), scaled to 100. Policy financial-industry-1; not an industrial ratio score or credit rating.
capital efficiency · 2/4 · Reported 2025 ROE was 7.5 percent, versus non-GAAP core operating ROE of 11.1 percent. The latter uses adjusted after-tax income and core operating equity, with annualization for interim periods. These establish mixed positive returns, without proving superior full-cycle capital efficiency or exceeding the cost of equity.
distributions and buffers · 2/4 · Actual 2025 parent repurchases and common dividends totaled approximately $6.8 billion, exceeding consolidated earnings and parent operating cash generation. First-half 2026 distributions slowed to approximately $1.7 billion alongside positive operating cash generation. Statutory minimum compliance and available liquidity support capacity, but declining liquidity and unquantified solvency buffers prevent a stronger assessment.
dilution and cost · 3/4 · First-half 2026 outstanding shares fell from 538.2 million to 524.7 million as 15.2 million repurchased shares more than offset 1.7 million issued shares. Annual weighted shares and interest expense also declined through 2025. Outstanding equity awards remain a dilution source, and complete compensation expense is absent; the grade reflects demonstrated net share and financing outcomes.
investment discipline · 2/4 · Completed Corebridge monetization provides an observable portfolio action. Substantial Convex and Onex investments, purchased Everest renewal rights and private-market commitments have limited disclosed return histories. Recent alternative investment losses provide an adverse outcome alongside the stated reserve-backing discipline, leaving overall investment discipline mixed.
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Actual distributions, share reduction and completed Corebridge monetization demonstrate active capital management. Large 2025 distributions exceeded consolidated earnings and parent operating cash generation, while new minority investments and lower June 2026 liquidity warrant a mixed assessment rather than treating repurchases as automatically value creating.
incentive alignment · 3/4 · Disclosed 2025 arrangements put at least 81 percent of annual target compensation at risk, with substantial long-term awards, performance conditions and clawback coverage. Individual scoring can materially increase payouts, and personal ownership compliance is not supplied. This assesses adopted arrangements, not future award vesting.
execution · 3/4 · Five consecutive years of underwriting profit, recent Global Personal operating improvement and completion of the Corebridge exit demonstrate execution. Assessment rests on operating and transaction outcomes; reserve benefits and uneven segment performance limit extrapolation.
governance · 3/4 · The proxy discloses independent committees, a lead independent director and completed shareholder engagement followed by more detailed compensation disclosure. These are demonstrated governance structures and actions, although compensation opposition and limited evidence of control effectiveness preclude an exceptional grade.
Evidence
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.
Item 1, Business: geographic reach through operations, licenses and network partners · Filed 12/02/2026
Broad and Long-Standing Distribution Relationships with brokers, agents, advisors, marketplaces and other distributors strengthened through AIG’s dedication to quality.
Item 1, Business: issuer description of distribution relationships · Filed 12/02/2026
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.
MD&A, Competition: management's differentiation strategy · Filed 07/08/2026
Years Ended December 31, Change (in millions) 2025 2024 2023 2025 vs 2024 2024 vs 2023 Underwriting results: Net premiums written $ 8,663 $ 8,364 $ 8,168 4 % 2 % Net premiums written, on constant dollar basis 3 3 Increase in unearned premiums (83) (219) (204) 62 (7) Net premiums earned 8,580 8,145 7,964 5 2 Losses and loss adjustment expenses incurred 4,781 4,463 4,641 7 (4) Acquisition expenses: Amortization of deferred policy acquisition costs 1,088 1,018 943 7 8 Other acquisition expenses 364 342 350 6 (2) Total acquisition expenses 1,452 1,360 1,293 7 5 General operating expenses 1,229 1,095 1,028 12 7 Underwriting income $ 1,118 $ 1,227 $ 1,002 (9) % 22 % Loss ratio 55.7 54.8 58.3 0.9 (3.5) Acquisition ratio 16.9 16.7 16.2 0.2 0.5 General operating expense ratio 14.3 13.4 12.9 0.9 0.5 Expense ratio 31.2 30.1 29.1 1.1 1.0 Combined ratio 86.9 84.9 87.4 2.0 (2.5) Adjustments for accident year loss ratio, as adjusted and accident year combined ratio, as adjusted: Catastrophe losses and reinstatement premiums (2.2) (2.9) (3.9) 0.7 1.0 Prior year development, net of reinsurance and prior year premiums 0.9 1.0 (1.8) (0.1) 2.8 Accident year loss ratio, as adjusted 54.4 52.9 52.6 1.5 0.3 Accident year combined ratio, as adjusted 85.6 83.0 81.7 2.6 1.3 Premiums Years Ended December 31, 2025 and 2024 Comparison Net premiums written, excluding the favorable impact of foreign exchange ($38 million), increased by $261 million, or 3 percent, primarily from Property, Global Specialty and Casualty driven by strength of renewal retentions and new business growth, partially offset by lower production in Financial Lines.
MD&A, International Commercial: 2023–2025 underwriting results and 2025 renewal demand · Filed 12/02/2026
—Achieved fifth consecutive year of underwriting profit and 17 consecutive quarters of a sub-90 percent AYCR, as adjusted
Compensation discussion: achieved underwriting profitability record · Filed 31/03/2026
Relative TSR Business Competitors comprised of AXA, Chubb, CNA Financial, The Hartford, Markel, Tokio Marine, Travelers and W.R.
Compensation discussion: explicitly identified relative-TSR business competitors · Filed 31/03/2026
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.
MD&A, Competition: competitive industry structure · Filed 07/08/2026
Insurance companies compete through a combination of risk acceptance criteria, product pricing, service levels and terms and conditions.
MD&A, Competition: competition on pricing, service and terms · Filed 07/08/2026
Distributors have in the past, and may in the future, elect to renegotiate the terms of existing relationships, such that those terms may not remain attractive or acceptable to us, limit the products they sell, including the types of products they offer on our behalf, or otherwise reduce or terminate their distribution relationships with us, with or without cause.
Risk factors: distributor renegotiation, reduction and termination of relationships · Filed 12/02/2026
The accident year loss ratio, as adjusted, and general operating expense ratio were both impacted by higher reapportionment of corporate expenses from lean parent implementation.
MD&A, International Commercial: effect of corporate expense reapportionment · Filed 12/02/2026
While market discipline continues to support price increases across most lines, we are seeing capacity move back into the market in certain segments given pricing levels which is putting pressure on rates.
MD&A, North America Commercial: price increases and rate pressure from returning capacity · Filed 13/02/2025
(a)approval of policy language and rates;
Business, Regulation: approval of policy language and rates · Filed 13/02/2025
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.
MD&A, North America Commercial: second-quarter 2026 underwriting income and combined ratio · Filed 07/08/2026
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).
MD&A, North America Commercial: reserve-development and catastrophe contributions · Filed 07/08/2026
This was partially offset by a higher accident year loss ratio, as adjusted (0.3 points) primarily due to changes in business mix.
MD&A, North America Commercial: higher adjusted accident-year loss ratio · Filed 07/08/2026
50 AIG | Second Quarter 2026 Form 10-Q TABLE OF CONTENTS 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.
MD&A, Global Personal: comparative first-half and second-quarter underwriting results · Filed 07/08/2026
Consolidated Statements of Income (Loss) Years Ended December 31, (dollars in millions, except per common share data) 2025 2024 2023 Revenues: Premiums $ 23,751 $ 23,537 $ 25,564 Net investment income: Net investment income - excluding Fortitude Re funds withheld assets 4,066 4,111 3,266 Net investment income - Fortitude Re funds withheld assets 149 144 180 Total net investment income 4,215 4,255 3,446 Net realized losses: Net realized losses - excluding Fortitude Re funds withheld assets and embedded derivative (966) (434) (734) Net realized losses on Fortitude Re funds withheld assets (70) (39) (71) Net realized losses on Fortitude Re funds withheld embedded derivative (166) (75) (273) Total net realized losses (1,202) (548) (1,078) Other income 11 7 6 Total revenues 26,775 27,251 27,938 Benefits, losses and expenses: Losses and loss adjustment expenses incurred 14,162 14,567 15,393 Amortization of deferred policy acquisition costs 3,371 3,425 3,771 General operating and other expenses 5,053 5,529 5,399 Interest expense 396 462 516 (Gain) loss on extinguishment of debt (5) 14 (37) Net (gain) loss on divestitures and other (81) (616) 29 Total benefits, losses and expenses 22,896 23,381 25,071 Income from continuing operations before income tax expense 3,879 3,870 2,867 Income tax expense (benefit): Current 905 657 176 Deferred (123) 513 (50) Income tax expense 782 1,170 126 Income from continuing operations 3,097 2,700 2,741 Income (loss) from discontinued operations, net of income taxes — (3,626) 1,137 Net income (loss) 3,097 (926) 3,878 Less: Net income attributable to noncontrolling interests 1 478 235 Net income (loss) attributable to AIG 3,096 (1,404) 3,643 Less: Dividends on preferred stock and preferred stock redemption premiums — 22 29 Net income (loss) attributable to AIG common shareholders $ 3,096 $ (1,426) $ 3,614 Income per common share attributable to AIG common shareholders: Basic: Income from continuing operations $ 5.48 $ 4.11 $ 3.77 Income (loss) from discontinued operations $ — $ (6.30) $ 1.25 Net income (loss) attributable to AIG common shareholders $ 5.48 $ (2.19) $ 5.02 Diluted: Income from continuing operations $ 5.43 $ 4.07 $ 3.74 Income (loss) from discontinued operations $ — $ (6.24) $ 1.24 Net income (loss) attributable to AIG common shareholders $ 5.43 $ (2.17) $ 4.98 Weighted average shares outstanding: Basic 565,078,072 651,448,307 719,506,291 Diluted 570,349,988 657,283,160 725,233,068 See accompanying Notes to Consolidated Financial Statements.
Consolidated statements of income: 2023–2025 earnings, investment losses, interest expense and weighted shares · Filed 12/02/2026
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 TABLE OF CONTENTS American International Group, Inc.
Condensed consolidated cash flows: first-half 2026 earnings, cash generation and financing · Filed 07/08/2026
For domestic insurance subsidiaries, aggregate minimum required statutory capital and surplus is based on the greater of the Risk-Based Capital (RBC) level that would trigger regulatory action or minimum requirements per state insurance regulation.
Notes: definition of domestic minimum required statutory capital and surplus · Filed 12/02/2026
At both December 31, 2025 and 2024, all domestic and foreign insurance subsidiaries individually exceeded the minimum required statutory capital and surplus requirements and all domestic insurance subsidiaries individually exceeded RBC minimum required levels.
Notes: subsidiary statutory capital and RBC compliance at December 2025 and 2024 · Filed 12/02/2026
Solvency II governs the insurance industry’s solvency framework for the EU, including minimum capital and solvency requirements, governance requirements, risk management and public reporting standards applicable to AIG’s subsidiaries operating in the EU.
Business, Regulation: Solvency II framework for EU subsidiaries · Filed 12/02/2026
68 AIG | Second Quarter 2026 Form 10-Q TABLE OF CONTENTS ITEM 2 | Liquidity and Capital Resources LIQUIDITY AND CAPITAL RESOURCES OF AIG PARENT AND SUBSIDIARIES AIG Parent As of June 30, 2026 and December 31, 2025, respectively, AIG Parent had approximately $7.4 billion and $9.3 billion in liquidity sources held in the form of cash, short-term investments and AIG Parent's committed, revolving syndicated credit facility of $3.0 billion.
Liquidity and Capital Resources: parent liquidity sources including revolving credit facility · Filed 07/08/2026
As of June 30, 2026, a total of $3.0 billion remained available under the Facility.
Liquidity and Capital Resources: available revolving facility at June 2026 · Filed 07/08/2026
Payments of dividends to us by our insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities.
Notes: regulatory restrictions on subsidiary dividends · Filed 12/02/2026
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 TABLE OF CONTENTS ITEM 1 | Notes to Condensed Consolidated Financial Statements (unaudited) | 11.
Insurance Liabilities: reserve rollforward, reinsurance recoverables and prior-year development · Filed 07/08/2026
Financial Lines (65) (43) 37 U.S. Property and Special Risks (124) 8 (7) Other Product Lines (148) (63) (65) Total North America Commercial $ (432) $ (156) $ (407) International Commercial: UK/Europe Casualty and Financial Lines $ 216 $ 170 $ 165 UK/Europe Property and Special Risks (19) (35) 81 Other Product Lines (273) (234) (98) Total International Commercial $ (76) $ (99) $ 148 60 AIG | 2025 Form 10-K TABLE OF CONTENTS ITEM 7 | Insurance Reserves Years Ended December 31, (in millions) 2025 2024 2023 Global Personal: U.S.
Insurance Reserves: product-level favorable and unfavorable development · Filed 12/02/2026
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 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 % Number of Loans Class Percent of Total (dollars in millions) Apartments Offices Retail Industrial Hotel Others Total December 31, 2024 Past Due Status: In good standing 186 $ 1,087 $ 971 $ 370 $ 301 $ 258 $ 119 $ 3,106 94 % 90 days or less delinquent 1 — 25 — — — — 25 1 >90 days delinquent or in process of foreclosure 3 — 112 62 — — — 174 5 Total* 190 $ 1,087 $ 1,108 $ 432 $ 301 $ 258 $ 119 $ 3,305 100 % Allowance for credit losses $ 5 $ 99 $ 34 $ 11 $ 13 $ 1 $ 163 5 % *Does not reflect allowance for credit losses.
Lending Activities: commercial mortgage delinquencies and credit-loss allowances · Filed 12/02/2026
•Our fundamental strategy across the portfolios is to seek investments with similar duration and cash flow characteristics to the associated insurance liabilities to the extent practicable.
Investments: asset and liability duration and cash-flow matching strategy · Filed 07/08/2026
–Insurance reserves are backed mainly by investment grade fixed maturity securities that meet our duration, currency, risk-return, capital, tax, liquidity, credit quality and diversification objectives.
Investments: reserve backing mainly through investment-grade fixed maturities · Filed 07/08/2026
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.
Fair Value Measurements: alternative investments and unfunded commitments · Filed 07/08/2026
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.
Fair Value Measurements: alternative investment and Corebridge gains and losses · Filed 07/08/2026
nAchieved Return on equity of 7.5 percent and Core Operating return on equity* of 11.1 percent.
2025 Highlights: GAAP ROE and non-GAAP core operating ROE · Filed 31/03/2026
Core operating return on equity is derived by dividing actual or, for interim periods, annualized adjusted after-tax income attributable to AIG common shareholders by average AIG core operating shareholders’ equity.
Non-GAAP measures: core operating return on equity denominator and numerator · Filed 07/08/2026
178 AIG | 2025 Form 10-K TABLE OF CONTENTS Condensed Financial Information of Registrant (Continued) Statements of Cash Flows – Parent Company Only Schedule II Years Ended December 31, (in millions) 2025 2024 2023 Net cash provided by (used in) operating activities $ 2,083 $ 3,367 $ 4,309 Cash flows from investing activities: Sales and maturities of investments 2,924 6,018 3,367 Purchase of investments (1,303) (353) (2,070) Net change in short-term investments 2,568 (523) (4,393) Contributions from (to) subsidiaries - net 312 (12) (47) Loans to subsidiaries - net (239) — 84 Other, net 28 278 1,025 Net cash provided by (used in) investing activities 4,290 5,408 (2,034) Cash flows from financing activities: Issuance of long-term debt 1,241 660 742 Repayments of long-term debt (852) (2,047) (2,037) Redemption of preferred stock — (485) — Dividends on preferred stock and preferred stock redemption premiums — (22) (29) Cash dividends paid on common stock (976) (1,002) (997) Loans from subsidiaries - net — — (97) Purchase of common stock (5,836) (6,652) (2,961) Other, net 54 822 3,108 Net cash provided by (used in) financing activities (6,369) (8,726) (2,271) Change in cash and restricted cash 4 49 4 Cash and restricted cash at beginning of year 59 10 6 Cash and restricted cash at end of year $ 63 $ 59 $ 10 Supplementary disclosure of cash flow information: Years Ended December 31, (in millions) 2025 2024 2023 Cash $ 8 $ 4 $ 10 Restricted cash included in Short-term investments 55 55 — Total cash and restricted cash shown in Statements of Cash Flows – Parent Company Only $ 63 $ 59 $ 10 Cash (paid) received during the period for: Interest: Third party $ (382) $ (611) $ (455) Intercompany 2 1 (3) Taxes: Income tax authorities 178 (231) (109) Intercompany 627 248 399 Intercompany non-cash financing and investing activities: Capital contributions 312 371 861 Dividends received in the form of securities — — 314 See accompanying Notes to Condensed Financial Information of Registrant.
Schedule II: parent-only cash flows, distributions and financing · Filed 12/02/2026
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 $2.50 per share (AIG Common Stock) only when, as and if declared by our Board of Directors (the Board) in its discretion, from funds legally available for this purpose.
Equity: first-half 2026 share issuance and repurchase rollforward · Filed 07/08/2026
Plan Category Plan Number of Securities to be Issued Upon Exercise of Outstanding Options and Rights(1)(2) Weighted-Average Exercise Price of Outstanding Options and Rights ($)(1) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in the Third Column) Equity compensation plans approved by security holders 2010 Stock Incentive Plan 11,780 (3) — — (4) 2013 Plan 3,273,383 (5) 42.20 (6) — (4) 2021 Plan 9,202,463 (7) 66.66 (6) 20,233,609 (8) Total 12,487,626 55.08 (6) 20,233,609 (1)Shares underlying deferred stock units, restricted stock units and performance share units are deliverable without the payment of any consideration, and therefore these awards have not been taken into account in calculating the weighted-average exercise price.
Equity Compensation Plan Information: outstanding awards and shares available for future issuance · Filed 31/03/2026
nCompleted acquisition of minority ownership stakes in Convex, a privately held global specialty insurer for approximately $2.1 billion and Onex, a global asset manager, for approximately $646 million.
Strategic Transactions: completed minority investments in Convex and Onex · Filed 31/03/2026
Best. Execution of Strategic Transactions nAcquired the renewal rights of Everest's global retail commercial insurance portfolios for an aggregate purchase price of $301 million.
2025 Highlights: acquired Everest renewal rights and purchase price · Filed 31/03/2026
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.
Basis of Presentation: sale of remaining Corebridge interest in May 2026 · Filed 07/08/2026
The aggregate proceeds to AIG Parent were approximately $710 million.
Basis of Presentation: proceeds from final Corebridge sale · Filed 07/08/2026
At least 81 percent of each named executive’s annual target direct compensation is at risk based on performance and subject to our clawback policies.
Compensation discussion: annual target compensation at risk and clawback coverage · Filed 31/03/2026
With respect to 2025 compensation, at least one-third of each named executive’s annual target direct compensation was delivered in LTI, of which at least 75 percent is in the form of performance-based awards (PSUs and stock options) that reward long-term value creation and performance achievements, and stock price appreciation relative to our trading price at the time of grant.
Compensation discussion: actual 2025 long-term compensation design · Filed 31/03/2026
Target Short-Term Incentive Award $6,000,000 Company Performance Score 133% Individual Performance Score 150% = Actual Short-Term Incentive Award (200% of target) $12,000,000 66 AIG 2026 PROXY STATEMENT Compensation Discussion and Analysis 2025 Compensation Decisions and Outcomes Keith Walsh Executive Vice President & Chief Financial Officer Core Area Goals Achievements Financial nDeliver on financial objectives nMaintain liquidity over risk appetite statement limit while supporting share repurchase goals and double-digit growth in dividend per share nMaintain a debt to capital leverage ratio within the 15-20 percent range nSupported delivery of strong General Insurance Calendar Year Combined Ratio of 90.1 percent, an improvement of 170 basis points year-over-year; Accident Year Combined Ratio, as adjusted* of 88.3 percent; increase in Book Value Per Share by 9.0 percent to $76.44; increase in General Insurance underwriting income by 22 percent year-over-year to $2.3 billion; and ROE of 7.5 percent and Core Operating ROE* of 11.1 percent nDrove enterprise cost objectives to successfully implement expense reduction nSupported achievement of positive rating actions from all four major rating agencies through disciplined capital plan execution, with first Moody's upgrade since 1990 nExecuted plan that delivered $5.8 billion of common stock repurchases and approximately $1 billion of dividends, reducing shares outstanding by 11 percent to 538 million, while maintaining strong holding company liquidity of $6.3 billion nRetired $1.1 billion debt and achieved an 18 percent debt to total capital ratio Strategic nContribute to a successful Investor Day nStrengthen investor and analyst relationships nSupport and execute on the Company's strategic actions nCompleted three sales of Corebridge common stock, reducing ownership to approximately 10 percent at year end and generating $2.5 billion in aggregate proceeds nSupported execution of key transactions, including purchase of equity stakes in Convex and Onex and Everest renewal rights as well as post-close Travel Guard divestiture execution nSupported the framework and implementation of Investor Day nConducted investor outreach covering approximately 86 percent of active shareholder ownership Operational nContinue to optimize the operating models for Finance function nContinue to drive cost transparency measures nMake progress on the implementation of enhanced technology solutions to support the Finance function and financial reporting nImplemented consistent enterprise-wide reporting standards, forecasting and analytics to drive transparency and streamlined earnings preparation nDesigned and executed process, implementation and governance improvements to support acceleration of U.S.
2025 Compensation Decisions and Outcomes: incentive payout and CFO achievements · Filed 31/03/2026
8 AIG 2026 PROXY STATEMENT Proxy Statement Summary Governance Snapshot Governance Snapshot Board Structure Board Independence nAll Directors are independent except our Chairman & CEO n100% independent committees nStrong Lead Independent Director role nOngoing board refreshment Nominee Highlights Key Qualifications for Our Nominees Leadership of complex global organizations Risk oversight and financial management Accounting expertise and high level of financial literacy Experience in business transformations Technology, cybersecurity, artificial intelligence, data management and digital strategies Insurance, financial services and corporate governance backgrounds AIG 2026 PROXY STATEMENT 9 Proxy Statement Summary Corporate Governance Highlights Corporate Governance Highlights Director Since Current Committee Memberships Director Nominee Age Occupation and Background Audit CMR NCG Risk James Cole, Jr.
Governance Snapshot: board and committee independence and lead independent director · Filed 31/03/2026
As a result, we met with shareholders representing approximately 50 percent of the Company’s outstanding common stock across more than 35 engagements.
Shareholder Engagement Program: completed outreach · Filed 31/03/2026
Specifically, we instructed Management to broaden the usual scope of our shareholder outreach, with a heightened focus on obtaining specific feedback from shareholders who did not support our executive compensation program in 2025.
Shareholder Engagement Program: outreach following compensation opposition · Filed 31/03/2026
As part of our regular assessment of year-on-year improvements to our compensation program design and disclosure, which also takes into account shareholder feedback, we have expanded this year’s disclosure to include more detailed information on a number of topics, including: nour shareholder engagement program, shareholder feedback received and associated responsiveness actions taken; nour performance metrics, including a description of each performance metric, why we use it and how it is evaluated in each of the STI and LTI plans; nour goal-setting process, the rigor of our performance goals and our forward-looking goals for relative Total Shareholder Return metrics; AIG 2026 PROXY STATEMENT 41 nhow our STI and LTI payouts are calculated; and nour use of peer groups.
Compensation discussion: disclosure changes responding to shareholder feedback · Filed 31/03/2026
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.
Insurance Liabilities: collateral supporting policyholder deductible recoverables · Filed 07/08/2026
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.
Insurance Liabilities: contractual deductible recoverables · Filed 07/08/2026
