American International (AIG) 8-K Regulation FD Disclosure

American International Group, Inc.

Investor Presentation

Second Quarter 2015

August 24, 2015

Exhibit 99.1

2

Cautionary Statement Regarding

Forward Looking Information

This

document

and

the

remarks

made

within

this

presentation

may

include,

and

officers

and

representatives

of

American

International

Group,

Inc.

(AIG)

may

from

time

to

time

make,

projections,

goals,

assumptions

and

statements

that

may

constitute

“forward-looking

statements”

within

the

meaning

of

the

Private

Securities

Litigation

Reform

Act

of

1995.

These

projections,

goals,

assumptions

and

statements

are

not

historical

facts

but

instead

represent

only

AIG’s

belief

regarding

future

events,

many

of

which,

by

their

nature,

are

inherently

uncertain

and

outside

AIG’s

control.

These

projections,

goals,

assumptions

and

statements

include

statements

preceded

by,

followed

by

or

including

words

such

as

“believe,”

“anticipate,”

“expect,”

“intend,”

“plan,”

“view,”

“target”

or

“estimate.”

It

is

possible

that

AIG’s

actual

results

and

financial

condition

will

differ,

possibly

materially,

from

the

results

and

financial

condition

indicated

in

these

projections,

goals,

assumptions

and

statements.

Factors

that

could

cause

AIG’s

actual

results

to

differ,

possibly

materially,

from

those

in

the

specific

projections,

goals,

assumptions

and

statements

include:

changes

in

market

conditions;

the

occurrence

of

catastrophic

events,

both

natural

and

man-made;

significant

legal

proceedings;

the

timing

and

applicable

requirements

of

any

new

regulatory

framework

to

which

AIG

is

subject

as

a

nonbank

systemically

important

financial

institution

and

as

a

global

systemically

important

insurer;

concentrations

in

AIG’s

investment

portfolios;

actions

by

credit

rating

agencies;

judgments

concerning

casualty

insurance

underwriting

and

insurance

liabilities;

judgments

concerning

the

recognition

of

deferred

tax

assets;

and

such

other

factors

discussed

in

Part

I,

Item

2.

Management’s

Discussion

and

Analysis

of

Financial

Condition

and

Results

of

Operations

(MD&A)

in

AIG’s

Quarterly

Report

on

Form

10-Q

for

the

quarterly

period

ended

June

30,

2015,

Part

I,

Item

2.

MD&A

in

AIG’s

Quarterly

Report

on

Form

10-Q

for

the

quarterly

period

ended

March

31,

2015

and

Part

I,

Item

1A.

Risk

Factors

and

Part

II,

Item

7.

MD&A

in

AIG’s

Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

2014.

AIG

is

not

under

any

obligation

(and

expressly

disclaims

any

obligation)

to

update

or

alter

any

projections,

goals,

assumptions

or

other

statements,

whether

written

or

oral,

that

may

be

made

from

time

to

time,

whether

as

a

result

of

new

information,

future

events

or

otherwise.

This

document

and

the

remarks

made

orally

may

also

contain

certain

non-GAAP

financial

measures.

The

reconciliation

of

such

measures

to

the

most

comparable

GAAP

measures

in

accordance

with

Regulation

G

is

included

in

the

Second

Quarter

2015

Financial

Supplement

available

in

the

Investor

Information

section

of

AIG's

corporate

website,

www.aig.com,

as

well

as

in

the

Appendix

to

this

presentation.

Note:

Information

included

in

the

presentation

is

as

of

June

30,

2015,

unless

otherwise

indicated.

3

AIG Today

A Truly Global Insurance Company Balancing Growth, Profitability, and Risk

Substantial

Franchise Value

AIG is the largest global insurer based on

shareholders’ equity, serving customers in over 100

countries and jurisdictions

Approximately 90 million clients, including 89% of the

Global Fortune 500 companies

Value-Based

Metrics

Economic risk selection based on risk adjusted

profitability, value of new business, and lifetime

customer value

Repurchased $23.2 billion in stock from 2012 through

July 2015

Balance Sheet

Quality and

Strength

Over $104 billion in shareholders’ equity

AIG Parent liquidity of $13.6 billion

Debt-to-capital ratio of 16.3%

3

4

Total Operating Revenue of $30.2 Billion for 1H15

Note: Percentages computed based on total AIG operating revenues.

1)

Includes results of AIG Parent, Runoff insurance lines, AIG Life Holdings (a non-operating holding company) and consolidation,

eliminations and other adjustments.

AIG –

A Diverse Customer-Focused Operating Platform

Retirement

16%

Life

11%

Personal Insurance

19%

Commercial Insurance

1H15 Operating Revenue

$14.5 Billion, 48%

Consumer Insurance

1H15 Operating Revenue

$13.8 Billion, 46%

Corporate

and

Other

1

1H15 Operating Revenue

$1.9 Billion, 6%

Property Casualty

40%

Mortgage Guaranty

2%

Institutional Markets

6%

AIG Today

Driven by Strong Values and Measurable Financial Goals

3

Financial Targets Drive Performance

Objective

Annual Target Through 2017

Growing Intrinsic Value

10+%

Growth

in

Book

Value

Per

Share

ex.

AOCI

and

DTA

1

Improving Capital Efficiency

~50+ bps Increase in Normalized ROE, ex. AOCI and DTA

Sustainable Operating Efficiency Gains

3–5%

Reduction

in

Net

Expenses

2

1)

Book Value Per Share (BVPS) excluding Accumulated Other Comprehensive Income (AOCI) and deferred tax assets (DTA).

2)

General operating expenses, operating basis (see non-GAAP measures in appendix).

Honor Commitments to Clients

Responsible Stewardship of Shareholder Value

2

Goals Guide AIG

5

Emphasis on Intrinsic Value Per Share and Capital Value

Drives Returns

$39.57

$45.30

$52.12

$58.23

$62.22

$10.54

$12.57

$12.16

$11.75

$11.69

$3.42

$8.51

$4.34

$7.71

$5.83

$53.53

$66.38

$68.62

$77.69

$79.74

Dec. 31, 2011

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2014

June 30, 2015

BVPS, Ex. AOCI & DTA

DTA

AOCI

Managing capital wisely

Enhancing our operating model to efficiently deploy our human and technology resources, and investing in our

infrastructure to ensure AIG’s market leadership in a world of constant technological and market innovation.

Completed $4.9 billion in share repurchases in 2014 and $4.7 billion in 2015 through July 31.

Strengthened financial flexibility of AIG Parent with insurance company distributions of $10.4 billion in 2014

and $5.7 billion in the first half of 2015 (see slide 12).

Reduced overall debt by $10.5 billion in 2014.

6

Normalized ROE, Ex. AOCI & DTA*

1H15

2Q15

($ in Millions)

Pre-tax

After-tax

ROE

Pre-tax

After-tax

ROE

As reported

$5,395

$3,584

8.8%

$2,868

$1,893

9.3%

Adjustments to arrive at Normalized ROE, ex. AOCI & DTA:

Catastrophe losses below expectations

(153)

(99)

(0.2%)

(39)

(25)

(0.1%)

Better than expected alternative returns

(320)

(208)

(0.5%)

(179)

(116)

(0.6%)

Better than expected DIB & GCM returns

(372)

(242)

(0.6%)

(312)

(203)

(1.0%)

Fair value changes on PICC investments

(278)

(181)

(0.4%)

(224)

(146)

(0.7%)

Net reserve discount charge

(235)

(153)

(0.4%)

(400)

(260)

(1.3%)

Unfavorable prior year loss reserve development

365

237

0.6%

329

214

1.1%

Normalized ROE, ex. AOCI & DTA

$4,402

$2,938

7.3%

$2,043

$1,357

6.7%

7

* Normalizing adjustments are tax effected using a 35% tax rate and computed based on average shareholders’ equity, excluding

AOCI and DTA, for the respective period.

Targeting 3-5% of Annual Reduction Through 2017

General Operating Expenses

Note: General operating expenses, operating basis (see non-GAAP measures in appendix).

General operating expenses, operating basis, declined 3.6% in 2Q15 and 3.5% in 1H15, compared to the

corresponding periods in 2014.

We

manage

our

expenses

on

a

gross

basis

–

before

allocation

to

loss

adjustment

expenses,

other

acquisition

expenses

and

investment

and

other

expenses

–

as

it

provides

a

more

meaningful

indication

of

our

fixed

operating

costs.

$2,071

$2,238

$2,206

$2,206

$1,972

$2,117

$4,309

$4,089

$376

$368

$355

$365

$369

$378

$744

$747

$407

$418

$408

$434

$423

$428

$825

$851

$25

$28

$24

$11

$20

$19

$53

$39

$2,879

$3,052

$2,993

$3,016

$2,784

$2,942

$5,931

$5,726

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

1H14

1H15

General operating expenses

Other acquisition expenses

Loss adjustment expenses

Investment and other expenses

General Operating Expenses, Operating Basis ($ in Millions)

8

9

Note: Refer to Appendix included herein for Non-GAAP reconciliations.

AIG Consolidated Operating Financial Highlights

Full Year

First

Half

($ in Millions, Except per Share Amounts)

2012

2013

2014

2015

$65,379

$61,524

$61,001

$30,225

-tax operating income:

Commercial Insurance

2,215

4,980

5,510

2,962

Consumer Insurance

3,736

4,564

4,474

1,968

Total Insurance Operations

5,951

9,544

9,984

4,930

Corporate and Other

3,987

(154)

(410)

465

-tax operating income

$9,938

$9,390

$9,574

$5,395

-tax operating income attributable to AIG

$6,542

$6,650

$6,630

$3,584

-tax

operating

income

attributable

to

AIG

per

common

share

-

diluted

$3.88

$4.49

$4.58

$2.60

–

After-tax

operating

income

–

ex.

AOCI

&

DTA

9.0%

9.3%

8.4%

8.8%

Note: Refer to Appendix included herein for Non-GAAP reconciliations.

1)

Represents Life Insurance Companies’ future policy benefits and policyholder contract deposits, and excludes separate accounts.

2)

Does not reflect issuances and repurchases of Parent debt during July 2015.

3)

Represents U.S. tax attributes related to net operating loss carryforwards and foreign tax credits.

AIG Consolidated Balance Sheet Selected Highlights

($ in Millions)

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2014

June 30, 2015

Cash and investments

$376,975

$358,669

$357,524

$350,516

Total assets

548,633

541,329

515,581

509,987

Net loss reserves

68,782

64,316

61,612

59,093

Life insurance companies reserves

1

159,508

160,887

165,647

165,210

Financial and hybrid debt

25,466

21,199

19,106

20,428

2

AIG shareholders’ equity

98,002

100,470

106,898

104,258

Less: Accumulated other comprehensive income (AOCI)

(12,574)

(6,360)

(10,617)

(7,620)

Less: Deferred tax assets (DTA)

3

(18,549)

(17,797)

(16,158)

(15,290)

AIG

shareholders’

equity

–

ex.

AOCI

&

DTA

$66,879

$76,313

$80,123

$81,348

10

$98.7

$101.1

$107.3

$104.6

$16.1

$15.7

$16.6

$18.8

$9.4

$5.5

$2.5

$1.6

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2014

June 30, 2015

Total Equity

Financial Debt

Hybrids

Credit Ratings

Capital Structure

($ in Billions)

Strong Capital Position

As of the date of this presentation, all ratings have stable

outlooks, except for Fitch which has positive outlooks.

For Non-Life Insurance Companies FSR and Life Insurance

Companies FSR, ratings only reflect those of the core insurance

companies.

$124.1

$122.3

Ratios:

Dec. 31

2012

Dec. 31

2013

Dec. 31

2014

June 30

2015

Hybrids / Total capital

7.6%

4.5%

1.9%

1.3%

Financial debt / Total

capital

12.9%

12.8%

13.2%

15.0%

Total debt

/ Total

capital

20.5%

17.3%

15.1%

16.3%

Risk

Based

Capital

Ratios

2

Year

End

Domestic Life

Insurance

Companies

Domestic Non-Life

Insurance

Companies

2013

568% (CAL)

416% (ACL)

2014

534% (CAL)

432% (ACL)

S&P

Moody’s

Fitch

AM Best

AIG –

Senior

Debt

A-

Baa1

BBB+

NR

AIG Non-Life –

FSR

A+

A1

A

A

AIG Life –

FSR

A+

A2

A+

A

$126.4

1

$125.1

11

1)

Includes AIG notes, bonds, loans and mortgages payable, and AIG Life Holdings, Inc. (AIGLH) notes and bonds payable and junior subordinated debt.

2)

The inclusion of RBC measures is intended solely for the information of investors and is not intended for the purpose of ranking any insurance company or for 

use in connection with any marketing, advertising or promotional activities. ACL is defined as Authorized Control Level and CAL is defined as Company Action 

Level. RBC ratio for Domestic Life Insurance Companies excludes their holding company, AGC Life Insurance Company.

12

AIG

Parent

Liquidity

2

($ in Billions)

Insurance

Company

Distributions

1

($ in Millions)

1)

Includes distributions of both cash and fixed maturity securities and excludes other non-cash dividends.

2)

AIG Parent liquidity at 12/31/14 was revised to include liquidity associated with the Direct Investment book (DIB) and Global Capital Markets (GCM). As a result of the progress

of the wind down and de-risking activities of the DIB and the derivative portfolio of AIG Financial Products Corp. and related subsidiaries included within GCM, AIG has

discontinued separate reporting of the DIB and GCM. Their results are reported within Income from other assets, net, beginning with the first quarter of 2015. This reporting

aligns with the manner in which AIG manages its financial resources. Prior periods are presented in the historical format for informational purposes. AIG borrowings supported

by assets continue to be managed as such with assets allocated to support the timely repayment of those liabilities. Assets previously held in the DIB and GCM that are

otherwise not required to meet the obligations and capital requirements of the DIB and GCM have been made available to AIG Parent.

Financial Flexibility –

Multiple Sources of Liquidity

$4,349

$9.8

$8,671

$10,417

$5,673

$13.6

Liquidity Position Bolstered by Cash Proceeds From Non-Core Asset

Monetizations and Insurance Company Distributions

$1,496

$4,238

$2,618

$1,301

$2,853

$4,433

$6,761

$3,361

$1,038

$1,011

FY 2012

FY 2013

FY 2014

1H15

$5.1

$7.7

$4.7

$5.9

Dec. 31, 2014

June 30, 2015

Life Insurance Companies

Tax Sharing Payments, Net

Unencumbered Fixed  Maturity Securities

Cash & Short-term Investments

Non-Life Insurance Companies

Enhanced Debt Maturity Profile

As of 12/31/2012 –

Total Notional Amount: $25.5 Billion / Weighted Average Coupon: 6.35%

Liability Management Actions Have Improved Maturity Profile and Reduced

Weighted Average Coupon to Below 5.0%

As of 7/31/2015 –

Total Notional Amount: $19.9 Billion / Weighted Average Coupon: 4.89%

($ in Millions)

($ in Millions)

1)

Remaining callable hybrid notes are reflected at their call dates.

2)

The 6.45% and 7.7% callable hybrid notes maturing in 2047 were called in 2013.

13

Continued Monetization of Deferred Tax Assets

Deferred Tax Assets

As of 12/31/13

As of 12/31/14

($ in Billions)

Type

Gross

Attributes

Deferred

Tax Asset

Gross

Attributes

Deferred

Tax Asset

Utilization/Expiration

Net Operating Loss

Carryforwards

Non-Life

& Life

$35.8

$12.5

$29.4

$10.3

Utilize against Non-Life Insurance

Companies, Corporate & Other and 35%

of Life Insurance Companies’ income

2028–2031 Expiration

Capital Loss

Carryforwards

Valuation Allowance

Life

$1.4

$0.5

($0.5)

–

–

–

Capital loss carryforward fully utilized

in 2014

Foreign

Tax Credits

General

$5.3

$5.9

Utilize against 65% of Life Insurance

Companies income

2016–2023 Expiration

Subtotal –

U.S. Tax

Attributes

17.8

16.2

Other Deferred Tax

Assets/(Liabilities)

3.4

2.5

Net

Deferred Tax

Assets

$21.2

$18.7

14

15

Non-Life Insurance Companies –

Invested Assets

Total Portfolio Composition

Bond

Portfolio

–

$92.4

Billion

–

by Agency Credit Rating

Total Cash & Invested Assets as of June 30, 2015 –

$118.9 Billion

1

Corporate

debt

Non-U.S.

Governments

U.S.

Governments

States,

municipalities,

and political

subdivisions

Cash and

short-term

investments

Loans

Other

invested

assets

Equities

CDO/ABS

RMBS

CMBS

AAA

AA

A

BBB

Not

Rated

BB

B

<B

1)

Includes intercompany invested assets that are eliminated in consolidation.

29%

10%

1%

4%

6%

4%

6%

3%

10%

19%

3%

8%

2%

16%

25%

28%

18%

<1%

8%

Life Insurance Companies –

Invested Assets

Total Portfolio Composition

Bond

Portfolio

–

$160.7

Billion

Total

Cash

&

Invested

Assets

as

of

June

30,

2015

–

$199.0

Billion

1

Corporate

debt

RMBS

CMBS

CDO/

ABS

Other

invested

assets

Loans

Cash and

short-term

investments

Non-U.S.

Governments

U.S. Governments

States,

municipalities,

and political

subdivisions

AAA

AA

A

BBB

BB

B

<B

Not

Rated

NAIC 3

NAIC 4

NAIC 5 & 6 –

1%

Not Rated

By Agency Credit Rating

By NAIC Ratings

NAIC 1

NAIC 2

1)

Includes intercompany invested assets that are eliminated in consolidation.

16

4%

3%

2%

11%

6%

6%

5%

11%

52%

4%

3%

8%

12%

10%

23%

40%

53%

38%

3%

2%

3%

<1%

<1%

17

Commercial Insurance

17

Commercial Insurance –

Strategy

Customer

Strategic

Growth

Underwriting

Excellence

Claims

Excellence

Operational

Effectiveness

Capital

Efficiency

Investment

Strategy

Aspire to be our

customers’ most

valued insurer by

offering innovative

products,

excellent

service

and

access to

an

extensive

global

network

Grow our

higher-value

businesses while

investing in

transformative

opportunities

Improve our

business portfolio

through better

pricing and risk

selection by using

enhanced data,

analytics and the

application of

science to deliver

superior risk-

adjusted returns

Improve claims

processes,

analytics and tools

to deliver superior

customer service

and decrease our

loss ratio

Continue

initiatives to

modernize our

technology and

infrastructure;

implement best

practices to

improve speed

and quality of

service

Increase capital

fungibility and

diversification,

streamline our

legal entity

structure,

optimize

reinsurance and

improve tax

efficiency

Increase asset

diversification and

take advantage

of yield-

enhancement

opportunities to

meet our capital,

liquidity, risk and

return objectives

Strategic Levers to Drive Shareholder Value Creation

18

Commercial Insurance –

Diversified Products and Services

General Liability

Commercial Automobile Liability

Workers’ Compensation

Excess Casualty

Crisis Management

Risk Management

Other Customized Structured Programs for

Large Corporate and Multinational Customers

Global Property covers exposures to man-

made and natural disasters, includes

business interruption

Industrial, Energy and Commercial Property

Multinational Property

Directors & Officers Liability, Errors

& Omissions

Cyber Security

Fidelity

Employment Practices

Fiduciary Liability

Kidnap and Ransom

Aerospace

Environmental

Political Risk

Trade Credit

Marine

Surety

Package

Protects mortgage investors against the

risk of borrower default related to high

loan to value mortgages

First-Lien Mortgage Guaranty Insurance

Stable Wrap Products

Structured Settlement and Terminal

Funding Annuities

High Net Worth Products

Corporate-

and Bank-owned

Life Insurance

GICs

Specialty

Casualty

Property

Financial Lines

Property Casualty

Mortgage Guaranty

Institutional Markets

19

20

1)

As measured by full year 2014 net premiums written. Refer to AIG 2014 10-K for further information.

2)

According to the 2015 RIMS Benchmark Survey, based on both policy counts and premiums.

3)

According to the 2014 Flaspöhler  Survey.

4)

According to Inside Mortgage Finance as measured by new insurance written as of December 31, 2014.

5)

According to AM Best in the 2014 Best’s Review Surplus Lines Report.

6)

According to the 2015 Advisen Claims Satisfaction Survey.

Commercial Insurance –

A Market Leader

#1

commercial insurer in the U.S. with an established and

growing

position

in

Latin

America

;

#1

carrier in the Directors and Officers, Employment

Practices Liability Insurance, Fiduciary Liability and

Umbrella/Excess

Liability

markets²;

#1

insurer of Terrorism, Medical Malpractice, Excess and

Surplus,

Environmental,

Errors

and

Omissions³ and

Mortgage

Guaranty

insurance

4

;

#2

provider of Umbrella/Excess Liability and Cyber

insurance²;

#2

carrier

in

the

Property

market

4

;

Ranked 2

nd

largest

group in the U.S. surplus lines market

in

2014

5

;

Lexington

Insurance

Company

was

the

largest

surplus

lines

insurance

carrier

in

the

U.S.

5

Significant Market Positions

Ranked among the top 10 most preferred commercial

insurance

carriers.²

Recognized leader in the Construction/Builders, Cyber,

Directors and Officers, Employment Practices,

Environmental, Errors and Omissions, Excess and

Surplus,

General

Liability,

Marine

–

Ocean,

Medical

Malpractice, Terrorism, Umbrella/Excess Liability, and

Workers’

Compensation

markets.²

Recognized as being in the top 25% of insurers for

handling

of

producers’

global

insurance

needs.²

#1

in casualty claims service among insurers and TPAs by

U.S.

clients

with

more

than

$1

billion

in

revenue.

6

Superior Sales &

Underwriting Capabilities

1

21

Commercial Insurance –

Property Casualty Financial Highlights

Full Year

First Half

($ in Millions)

2012

2013

2014

2015

Net premiums written

$20,348

$20,880

$21,020

$10,630

Net premiums earned

20,848

20,677

20,885

10,033

Underwriting income (loss)

(2,270)

(336)

(50)

206

Net investment income

3,951

4,431

4,298

2,156

Pre-tax operating income

$1,681

$4,095

$4,248

$2,362

Net Premiums Written

1H15 –

$10.6 Billion

Combined Ratios

80.5

71.9

71.6

69.5

68.9

65.4

65.6

65.5

16.6

16.1

15.7

15.6

16.6

16.1

15.7

15.6

13.8

13.6

12.9

12.8

13.8

13.6

12.9

12.8

0

20

40

60

80

100

120

2012

2013

2014

1H15

2012

2013

2014

1H15

Loss Ratio

Acquisition Ratio

GOE Ratio

110.9

101.6

100.2

99.3

95.1

94.2

Accident Year,

as Adjusted

Calendar Year

Property

Specialty

Financial

Lines

Casualty

Americas

EMEA

Asia

Pacific

Continued Improvement in Accident Year Combined Ratios, As Adjusted

97.9

93.9

Severe losses

1.4

2.8

2.8

3.2

1.4

2.8

2.8

3.2

25%

17%

23%

35%

64%

27%

9%

22

Meaningful Remediation of Casualty Lines and Growth Outside of the U.S.

Commercial Insurance –

Property Casualty Product Mix & Geography Shift

Property Casualty

Full

Year

2010

NPW

–

$20.2

Billion

Property Casualty

1H15

NPW

–

$10.6

Billion

16%

17%

18%

49%

Casualty

Property

Specialty

Financial

lines

EMEA

Americas

Asia

Pacific

EMEA

Americas

Asia

Pacific

25%

17%

23%

35%

71%

7%

22%

64%

9%

27%

Casualty

Property

Specialty

Financial

lines

23

Business Mix Shifts Away from Long-Tail Casualty Lines and Accelerated Commutation of

Legacy Portfolios (Especially 2004 and Prior) Are Expected to Also Reduce Reserve Variability

Reserves –

Non-Life Insurance Companies

Total Net Reserves $62.4 Billion at June 30, 2015

Business mix shift to shorter-tail lines expected to reduce net reserves

Over 60% of reserves are from business that has been substantially re-underwritten (i.e., post 2011)

Reduction in outstanding loss reserves for long-tail reserve segments expected to reduce reserve variability

2004

and Prior

2005–2007

2008–2010

2011–2015

Note: Allocation by accident year for illustration purposes only and subject to change. Net reserves presented above are shown before the

effect of a $3.3 billion loss reserve discount. Net loss reserves for the Non-Life Insurance Companies includes Property Casualty, Personal

Insurance, Mortgage Guaranty and run-off Non-Life Insurance Companies’ businesses.

Casualty

Financial

Lines

Specialty

Property

UGC

Personal Lines

4%

Accident and Health

3%

Other Run-Off

Lines -

7%

By Accident Year

By Line of Business

55%

15%

9%

6%

15%

8%

16%

61%

1%

24

Strong growth in operating earnings reflects lower delinquency rates, higher cure rates, and new business growth.

Volume and quality of new business remain strong despite competitive pressures.

–

Average FICO of new insurance written in 2Q15 was 752.

–

Average loan-to-value of new insurance written in 2Q15 was 91%.

Mortgage Guaranty’s primary insurance subsidiary, United Guaranty Residential Insurance Company, maintains an

S&P rating of A and Moody's rating of Baa1 with stable outlooks.

2

Mortgage Guaranty will be compliant with the PMIER’s standards on the December 31, 2015 effective date.

On July 29, 2015, obtained $298.9 million of indemnity reinsurance from Bellemeade Re Ltd., a Bermuda-domiciled

special purpose insurer, for a portfolio of mortgage insurance policies issued from 2009 through 1Q13.

1)

Domestic First-lien only.

2)

As of the date of this presentation.

Commercial Insurance –

Mortgage Guaranty Financial Highlights

Full Year

First Half

($ in Millions)

2012

2013

2014

2015

Net premiums written

$858

$1,048

$1,024

$535

Underwriting income (loss)

(137)

73

454

233

Net investment income

146

132

138

69

Pre-tax operating income

$9

$205

$592

$302

Delinquency ratio

1

8.8%

5.9%

4.4%

3.6%

25

Mortgage Guaranty’s Risk Quality Index (RQI) is a proprietary model that uses over a dozen variables to estimate the

potential for a mortgage to default.

RQI is the key driver in Mortgage Guaranty’s risk-based pricing plan, Performance Premium.

Primary delinquency rate has returned to a pre-crisis level due to a combination of strong growth of new business and

proactive management of the delinquent book.

* Internal data.

Commercial Insurance –

Mortgage Guaranty Credit Quality of Loans

Mortgage Guaranty Risk Quality Index*

Primary Risk-in-force (RIF) –

$45.0 Billion

Low Quality

Loan with Average Risk

High Quality

2014

2013

2012

2011

2010

2009

2008

2007

2015

2006

and

Prior

(As of June 30, 2015)

2005

2006

2007

2008

2009

2010

2011

2012

2013

20141H15

9%

7%

4%

1%

2%

5%

15%

22%

22%

13%

26

$36,129

$35,832

$32,320

$32,588

$68,449

$68,420

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Dec. 31, 2014

June 30, 2015

Total Reserves

SVW –

AUM

($ in Millions)

Commercial Insurance –

Institutional Markets Financial Highlights

Reserves & Stable Value Wraps

Assets Under Management

Full Year

First

Half

2012

2013

2014

2015

Premiums and deposits

$774

$991

$3,797

$826

Premiums

458

610

432

739

Policy fees

102

113

187

99

Net investment income

2,066

2,090

1,957

958

Total operating revenues

2,626

2,813

2,576

1,796

Benefits and expenses

2,101

2,133

1,906

1,498

Pre-tax operating income

$525

$680

$670

$298

27

Consumer Insurance

28

Consumer Insurance –

Strategy

Customer

Information-

Driven Strategy

Focused

Growth

Operational

Effectiveness

Profitability and

Capital

Management

Investment

Strategy

Aspire to be our

customers’ most

valued insurer.

Through our unique

franchise, which

brings together a

broad portfolio of

retirement, life

insurance and

personal insurance

products offered

through multiple

distribution networks,

Consumer Insurance

aims to provide

customers with the

products they need,

delivered through the

channels they prefer.

Utilize customer

insight, analytics

and the application

of science to

optimize customer

acquisition, product

profitability, product

mix, channel

performance and

risk management

capabilities.

Invest in areas

where Consumer

Insurance can grow

profitably and

sustainably. Target

growth in select

markets according to

market size, growth

potential, market

maturity and

customer

demographics.

Simplify processes,

enhance operating

environments, and

leverage the best

platforms and tools

for multiple

operating segments

to increase

competitiveness,

improve service and

product capabilities

and facilitate

delivery of our

target customer

experience.

Deliver solid earnings

through disciplined

pricing and expense

management,

sustainable

underwriting

improvements and

diversification of risk,

and increase capital

efficiency within

insurance entities to

enhance return on

equity.

Maintain a diversified,

high quality portfolio

of fixed maturity

securities that largely

matches the duration

characteristics of the

related insurance

liabilities, and pursue

yield-enhancement

opportunities that

meet liquidity, risk

and return objectives.

Distinguish Ourselves in the Markets and Products We Choose.

Be the Provider of Choice Among Our Target Segments and Channels.

29

Focused Growth

Consumer Insurance –

Market Maturity Model

Early Stage Market

Advanced Stage Market

Product

Channel

Customer Segment

Travel

Warranty

Auto &

Home

Life

Health

Retirement

Financial

Services

Career

Agency, IFAs

Broad Market/

Wholesaling

Sponsors –

including

Brokers, Banks &

Reinsurance

Micro

Insurance

Self-Employed

Employed

Emerging

Banked

Middle

Class

Affluent

High Net

Worth

General

Population

Personal

Accident

Public

Agencies

30

1)

Based on LIMRA rankings for respective periods.

2)

As of 2Q15.

3)

Source –

Non-Life Insurance Statistics, AIG internal analysis (includes Medical products sold by Non-Life Insurance Companies)

as of 4Q14.

4)

Source –

General Insurance Rating Organization of Japan as of 4Q14.

Consumer Insurance –

Leading Market Positions

U.S. Life and

Retirement Businesses

1

Personal Insurance

U.S.

Private Client Group

–

40%

of

the

Forbes

400

Richest

Americans²

–

47% of the Americans Listed on the

ARTnews

Top

200

Collectors²

Japan

2

in Personal Accident with 20% market

share³

4

in Personal Property with 13% market

share

4

Rank

Metric

1Q15

1Q14

2

2

Total Annuity Sales

2

1

Fixed-Rate Deferred

Annuity Sales

3

4

Variable Annuity Sales

7

8

Total Life

Issued

8

7

Term Life Sales

12

11

Universal Life Sales

2

2

Total K-12 Assets

3

3

Total 403(b) Assets

nd

th

31

Consumer Insurance Operations Continue to Be Recognized for Excellence Globally

Consumer Insurance –

Leading Businesses

Market

Tools

–

U.S.

2015 Achievement in Customer

Excellence for Life Insurance (ACE

Award

for

8

Consecutive

Year)

DALBAR –

U.S.

2014 Annuity Service Excellence Award

(8

Consecutive Year)

2014 #1 Ranking for Annuity Client

Quarterly Statements

(14

Consecutive Year)

2014 Communication Seal for

VALIC.com (3

Consecutive Year)

2014 Mobile InSIGHT –

Innovations in

the World of Apps Trailblazer Rating

(VALIC Mobile for iPad)

PlanSponsor

Magazine

–

U.S.

Earned 14 Best-in-Class Awards for

Participant and Plan Sponsor Services

for VALIC in 2014

International

MarCom

Awards

–

U.S.

2014 Platinum and Gold Awards for

Retirement (34 in total)

Travvy

Awards

–

U.S.

AIG Travel Named Top Travel Insurance

Provider

in 2015

Insurance and Financial

Communications

Association

–

U.S.

2015 Best in Show and Awards of

Excellence for Retirement (8 in total)

Money

Week

Awards

–

China

AIG Travel –

China Named Best Travel

Insurance Product in 2015

Underwriting

Services

Awards

–

U.K.

AIG UK Group Travel and Personal

Accident Team of the Year in 2014

Australian Business Awards 2014

ABA100 Winner for Best Technology

Product in 2014

JD

Power

Asia

Pacific

–

Japan

AIG Japan (AIU, FFM and American

Home)

ranked #1 in

2014 Auto Insurance

Claims Satisfaction survey (for 6

Year)

Reader’s

Digest

–

Singapore

AIG Singapore Most Trusted Brand Award

for Auto Insurance 2015

Indonesian Insurance Awards

AIG Indonesia Named Best Private

General Insurance 2014

Gaivota de Ouro Insurance

Industry Awards, Seguro

Total

Magazine

–

Brazil

AIG Brazil Earned Group Life Award

in 2014

AVA

Digital

Awards

–

U.S.

Earned 4 Platinum Awards in 2015

Saigon Liberation

Newspaper Awards

AIG Travel Named Favorite

Vietnamese Brand Award

(10

Consecutive Year)

Motordata Research Consortium –

Malaysia

AIG Malaysia Named Insurer of the

Year 2014

MENA

Insurance

Awards

–

EMEA

EMEA Consumer Named Most

Innovative Insurer Product in 2015

Business Insurance

2015

Innovation

Award

–

AIG

World Travel Fair

AIG Travel Named Best Quality

Service Travel Insurance Company

for Travel Accident 2015

th

th

th

rd

th

th

1)Premiums and deposits include net premiums written for the Personal Insurance operating segment and premiums and deposits for the

Retirement and Life operating segments. Retirement premiums and deposits exclude activity related to closed blocks of fixed and variable

annuities.

Consumer Insurance –

Overview

Premiums and Deposits¹

1H15 –

$19.9 Billion

Pre-Tax Operating Income

1H15 –

$2.0 Billion

Life

Retirement

Life

Personal

Insurance

Retirement

Personal

Insurance

58%

12%

30%

16%

2%

82%

32

1) Excludes activity related to closed blocks of fixed and variable annuities.

Consumer Insurance –

Retirement Financial Highlights

Full Year

First Half

($ in Millions)

2012

2013

2014

2015

Premiums

and deposits¹

$16,048

$23,729

$24,023

$11,579

Premiums

120

188

287

90

Policy fees

743

861

1,010

541

Net investment income

6,502

6,628

6,489

3,188

Other income

1,344

1,754

1,998

1,034

Total operating revenues

8,709

9,431

9,784

4,853

Benefits and expenses

5,908

5,941

6,289

3,249

Pre-tax operating income

$2,801

$3,490

$3,495

$1,604

Premiums and Deposits

1H15 –

$11.6 Billion

Assets Under Management

June

30,

2015

–

$224.9

Billion

Retail

Mutual

Funds

Fixed

Annuities

Group

Retirement

Retirement

Income

Solutions

Retail Mutual

Funds

Fixed

Annuities

Group

Retirement

Retirement

Income

Solutions

15%

11%

27%

47%

6%

29%

42%

23%

33

5.11%

5.06%

5.03%

4.99%

4.98%

5.00%

4.92%

4.96%

4.92%

5.08%

4.75%

4.95%

5.15%

5.35%

2Q14

3Q14

4Q14

1Q15

2Q15

2.83%

2.81%

2.80%

2.78%

2.77%

3.03%

2.99%

2.98%

2.97%

2.94%

2.00%

2.50%

3.00%

3.50%

2Q14

3Q14

4Q14

1Q15

2Q15

2.28%

2.25%

2.23%

2.21%

2.21%

1.97%

1.93%

1.98%

1.95%

2.14%

1.00%

1.50%

2.00%

2.50%

3.00%

2Q14

3Q14

4Q14

1Q15

2Q15

Fixed Annuities

Group Retirement

Base Net Investment Spreads¹

1)

Annualized return on base portfolio.

2)

Excludes the amortization of sales inducement assets.

Consumer Insurance –

Retirement –

Base Yields and Spreads

Base Yields¹

Cost of Funds²

34

Trend in base yields reflects the reinvestment of cash flows at yields lower than the overall portfolio rate. The increase in Group

Retirement

base yield and net investment spread in 2Q15 was due to additional accretion income, which added 14 bps.

Management remains focused on actions to reduce the cost of funds in order to support base spreads. In the second quarter, cost of funds

continued to benefit from active management of crediting rates, disciplined new business pricing and the run-off of older business with

crediting rates generally higher than the overall cost of funds.

35

Individual variable annuities represented 18% of total reserves at June 30, 2015 for AIG’s U.S. Life Insurance Companies.

AIG significantly improved its industry ranking since 2009; remaining growth opportunity in variable annuities due to market

share of only 7.5%.

Disciplined pricing and de-risked benefits: VIX indexing of rider fees, volatility control funds, mandatory asset allocation to fixed

accounts.

Sales of index annuities with living benefits diversifies AIG’s guaranteed income offerings.

* Source: LIMRA VA Sales report. VA industry sales data reported herein excludes Employer Plan sales and internal exchange sales.

1) Excludes $3.8 billion of AUM at VALIC with GMWB guarantees.

2) De-Risked Benefits: Features on contracts issued since 2010 (VIX indexing/volatility control fund in 2012).

3) Pre-2010 Partially De-Risked Benefits: Due to actual policyholder election of extension offers to-date.

Consumer Insurance –

Retirement –

Individual Variable Annuities

Industry Retail Variable Annuity Sales*

Account Value by GMWB Guarantee

at 6/30/15¹ –

$33.4 Billion

Unique Opportunity for AIG

1Q15

%

Change

1Q14

Company

($ in millions)

Rank

Sales

Rank

Sales

Jackson National

1

5,238

(18%)

1

6,382

Lincoln Financial Group

2

2,742

(8%)

2

2,997

Transamerica

3

2,279

15%

5

1,975

Prudential Financial

4

2,165

(4%)

3

2,254

AIG

5

2,008

0%

4

2,003

AXA Equitable

6

1,633

(7%)

6

1,752

Nationwide

7

1,335

3%

8

1,296

MetLife

8

1,293

(9%)

7

1,423

Ameriprise

9

1,136

(3%)

9

1,167

Pacific Life

10

907

(12%)

10

1,034

All Others

6,195

(3%)

6,408

Industry

26,931

(6%)

28,689

De-Risked

Benefits²

Early

Benefits

Revised

Benefits³

6%

12%

82%

36

1)

Other income primarily relates to commission and profit sharing revenues received by Laya Healthcare from the distribution of insurance products.

2)

Decline in pre-tax operating income in 2014 primarily reflected a $104 million addition to reserves for IBNR death claims, an $87 million increase related

to runoff Long term care reserves, and lower net investment income.

3)

Includes the acquisition of Ageas Protect (now AIG Life Limited).

Consumer Insurance –

Life Financial Highlights

Full Year

First Half

($ in Millions)

2012

2013

2014

2015

Premiums

and deposits

$4,864

$4,862

$4,806

$2,472

Premiums

2,804

2,737

2,679

1,410

Policy fees

1,370

1,391

1,443

725

Net investment income

2,283

2,269

2,199

1,093

Other

income¹

-

-

-

17

Total operating revenues

6,457

6,397

6,321

3,245

Benefits and expenses

5,721

5,591

5,741

2,925

Pre-tax operating income

$736

$806

$580²

$320

New Business Sales

1H15 –

$232 Million

Gross Life Insurance In-Force³

End of Period, $ in Billions

$906.2

$916.3

$94.5

$100.3

$0

$200

$400

$600

$800

$1,000

$1,200

December 31, 2014

June 30, 2015

Domestic

International

$1,000.7

Whole

Life

Term Life

Health

Other

Universal

Life

U.S.

Japan

$1,016.6

U.K.

10%

39%

11%

19%

21%

50%

37%

13%

37

Consumer Insurance –

Personal Insurance

Financial Highlights

Net Premiums Written

1H15 –

$5.8 Billion

Combined Ratios

Full Year

First Half

($ in Millions)

2012

2013

2014

2015

Net

premiums written

$13,302

$12,700

$12,412

$5,845

Net premiums earned

13,103

12,377

11,970

5,605

Underwriting income (loss)

(278)

(187)

5

(82)

Net investment

income

477

455

394

126

Pre-tax operating

income (loss)

$199

$268

$399

$44

59.3

56.8

54.2

55.8

56.5

57.4

53.8

54.6

25.3

26.2

27.2

27.6

25.3

26.2

27.2

27.6

17.5

18.5

18.5

18.1

17.5

18.5

18.5

18.1

0

20

40

60

80

100

120

2012

2013

2014

1H15

2012

2013

2014

1H15

Loss Ratio

Acquisition Ratio

GOE Ratio

Accident Year,

as Adjusted

Calendar Year

102.1

101.5

99.9

99.3

102.1

99.5

Accident

and Health

Personal

Lines

Americas

EMEA

Asia

Pacific

101.5

100.3

44%

56%

32%

17%

51%

38

Appendix

Sept 2008

United

States

provides

capital to

AIG;

launches

restructuring

program

Aug 2009

Bob

Benmosche

becomes

AIG CEO

Oct 2010

AIG prices

sale of

shares in

AIA in

$20.5B IPO

Nov 2010

AIG

completes

sale of

ALICO to

MetLife

Feb 2011

AIG

completes

sale of Star

and Edison

Co.’s to

Prudential

Dec 2012

U.S.

Treasury

sells down

all remaining

U.S.

ownership of

AIG

Aug 2013

AIG pays

first dividend

post-rescue

May 2014

AIG

completes

sale of Int’l

Lease

Finance

Corporation

to AerCap

Sept 2014

Peter

Hancock

becomes

AIG CEO

June 2015

Reduction in

derivative

notional

exposure to

$225 billion

from peak of

over $2

trillion

Successfully Focusing AIG While Managing Risk

Each of AIG’s Strategic Businesses is Continually Reviewed

Building long term sustainable value with a five to ten year time horizon

Since the financial crisis, AIG has generated over $90 billion in

proceeds from over 50 asset sales and divestitures, de-risked its

structure and eliminated government ownership

39

40

We use the following operating performance measures because we believe they enhance the understanding of the underlying profitability of

continuing operations and trends of our business 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.

Operating

revenue

excludes

Net

realized

capital

gains

(losses),

Aircraft

leasing

revenues,

income

from

legal

settlements

(included

in

Other

income

for

GAAP

purposes) and changes in fair values of fixed maturity securities designated to hedge living benefit liabilities, net of interest expense (included in Net

investment income for GAAP purposes).

Book

Value

Per

Share

Excluding

Accumulated

Other

Comprehensive

Income

(AOCI)

and

Book

Value

Per

Share

Excluding

AOCI

and

Deferred

Tax

Assets (DTA)

are used to show the amount of our net worth on a per-share basis. We believe these measures are useful to investors because they

eliminate the effect of non-cash items that can fluctuate significantly from period to period, including changes in fair value of our available for sale securities

portfolio,

foreign

currency

translation

adjustments

and

U.S.

tax

attribute

deferred

tax

assets.

Deferred

tax

assets

represent

U.S.

tax

attributes

related

to

net

operating loss carryforwards and foreign tax credits. Amounts are estimates based on projections of full year attribute utilization. Book Value Per Share

Excluding AOCI is derived by dividing Total AIG shareholders’ equity, excluding AOCI, by Total common shares outstanding. Book Value Per Share

Excluding AOCI and DTA is derived by dividing Total AIG shareholders’ equity, excluding AOCI and DTA, by Total common shares outstanding.

After-tax

operating

income

attributable

to

AIG

is

derived

by

excluding

the

following

items

from

net

income

attributable

to

AIG:

–

deferred income tax valuation allowance releases and charges;

–

changes in fair value of fixed maturity securities designated to hedge

living benefit liabilities (net of interest expense);

–

changes in benefit reserves and deferred policy acquisition costs (DAC),

value of business acquired (VOBA), and sales inducement assets (SIA)

related to net realized capital gains and losses;

–

other

income

and

expense

—

net,

related

to

Corporate

and

Other

run-off

insurance lines;

–

loss on extinguishment of debt;

–

net realized capital gains and losses;

–

non-qualifying derivative hedging activities, excluding net realized capital

gains and losses;

–

income or loss from discontinued operations;

Return

on

Equity

–

After-tax

Operating

Income

Excluding

AOCI

and

Return

on

Equity

–

After-tax

Operating

Income

Excluding

AOCI

and

DTA

are

used to show the rate of return on shareholders’ equity. We believe these measures are useful to investors because they eliminate the effect of non-cash

items that can fluctuate significantly from period to period, including changes in fair value of our available for sale securities portfolio, foreign currency

translation

adjustments

and

U.S.

tax

attribute

deferred

tax

assets.

Deferred

tax

assets

represent

U.S.

tax

attributes

related

to

net

operating

loss

carryforwards

and

foreign

tax

credits.

Amounts

are

estimates

based

on

projections

of

full

year

attribute

utilization.

Return

on

Equity

–

After-tax

Operating

Income

Excluding

AOCI is derived by dividing actual or annualized after-tax operating income attributable to AIG by average AIG shareholders’ equity, excluding average AOCI.

Return on Equity –

After-tax Operating Income Excluding AOCI and DTA is derived by dividing actual or annualized after-tax operating income attributable to

AIG, by average AIG shareholders’ equity, excluding average AOCI and DTA.

Glossary of Non-GAAP Financial Measures

AIG

–

income and loss from divested businesses, including:

•

gain on the sale of International Lease Finance Corporation

(ILFC); and

•

certain post-acquisition transaction expenses incurred by AerCap

Holdings N.V. (AerCap) in connection with its acquisition of ILFC

and the difference between expensing AerCap’s maintenance

rights assets over the remaining lease term as compared to the

remaining economic life of the related aircraft and related tax

effects;

–

legacy tax adjustments primarily related to certain changes in

uncertain tax positions and other tax adjustments; and

–

legal reserves and settlements related to legacy crisis matters, which

include favorable and unfavorable settlements related to events

leading up to and resulting from our September 2008 liquidity crisis

and legal fees incurred as the plaintiff in connection with such legal

matters.

41

Pre-tax operating income:

includes both underwriting income and loss and net investment income, but excludes net realized capital gains and

losses,

other

income

and

expense

—

net

and

legal

settlements

related

to

legacy

crisis

matters

described

above.

Underwriting

income

and

loss

is derived by reducing net premiums earned by losses and loss adjustment expenses incurred, acquisition expenses and general operating

expenses.

Ratios: We, along with most property and casualty insurance companies, use the loss ratio, the expense ratio and the combined ratio as

measures of underwriting performance. These ratios are relative measurements that describe, for every $100 of net premiums earned, the

amount of losses and loss adjustment expenses, and the amount of other underwriting expenses that would be incurred. A combined ratio of

less

than

100

indicates

underwriting

income

and

a

combined

ratio

of

over

100

indicates

an

underwriting

loss.

The

underwriting

environment

varies across countries and products, as does the degree of litigation activity, all of which affect such ratios. In addition, investment returns,

local taxes, cost of capital, regulation, product type and competition can have an effect on pricing and consequently on profitability as reflected

in underwriting income and associated ratios.

Accident year loss and combined ratios, as adjusted: both the accident year loss and combined ratios, as adjusted, exclude catastrophe

losses and related reinstatement premiums, prior year development, net of premium adjustments, and the impact of reserve discounting.

Catastrophe losses are generally weather or seismic events having a net impact in excess of $10 million each.

Normalized

Return

on

Equity,

Excluding

AOCI

and

DTA

further

adjusts

Return

on

Equity

–

After-tax

Operating

Income,

excluding

AOCI

and

DTA for the effects of certain volatile or market related items. Normalized Return on Equity, Excluding AOCI and DTA is derived by excluding

the

following

tax

adjusted

effects

from

Return

on

Equity

–

After-tax

Operating

Income,

Excluding

AOCI

and

DTA:

–

Catastrophe losses compared to expectations

–

Alternative investment returns compared to expectations

–

DIB/GCM returns compared to expectations

–

Fair value changes on PICC investments

–

DAC unlockings

–

Net reserve discount change

–

Life insurance IBNR death claim charge

–

Prior year loss reserve development

General operating expenses, operating basis, is derived by making the following adjustments to general operating and other expenses:

include (i) loss adjustment expenses, reported as policyholder benefits and losses incurred and (ii) certain investment and other expenses

reported as net investment income, and exclude (i) advisory fee expenses, (ii) non-deferrable insurance commissions, (iii) direct marketing and

acquisition

expenses,

net

of

deferrals,

(iv)

legal

reserves

related

to

legacy

crisis

matters

and

(v)

other

expense

related

to

a

retroactive

reinsurance agreement. We use general operating expenses, operating basis, because we believe it provides a more meaningful indication of

our ordinary course of business operating costs.

Glossary of Non-GAAP Financial Measures (continued)

AIG

Commercial Insurance: Property Casualty and Mortgage Guaranty; Consumer Insurance: Personal Insurance

42

Glossary of Non-GAAP Financial Measures (continued)

Pre-tax

operating

income

and

loss

is

derived

by

excluding

the

following

items

from

pre-tax

income

and

loss:

–

loss on extinguishment of debt

–

net realized capital gains and losses

–

changes in benefit reserves and DAC, VOBA and SIA related

to net realized capital gains and losses

–

income and loss from divested businesses, including Aircraft Leasing

Corporate and Other

–

net gain or loss on sale of divested businesses, including:

•

gain on the sale of ILFC and

•

certain post-acquisition transaction expenses incurred by AerCap

in connection with its acquisition of ILFC and the difference

between expensing AerCap’s maintenance rights assets over the

remaining lease term as compared to the remaining economic life

of the related aircraft and our share of AerCap’s income taxes

–

Certain legal reserves (settlements) related to legacy crisis matters

described above

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

Commercial Insurance: Institutional Markets; Consumer Insurance: Retirement and Life

Pre-tax operating income

is derived by excluding the following items from pre-tax income:

–

changes in fair values of fixed maturity securities designated to hedge living benefit liabilities (net of interest expense);

–

net realized capital gains and losses;

–

changes in benefit reserves and DAC, VOBA and SIA related to net realized capital gains and losses;

–

legal settlements related to legacy crisis matters described above.

Premiums and deposits:

includes direct and assumed amounts received and earned on traditional life insurance policies, group benefit

policies

and

life-contingent

payout

annuities,

as

well

as

deposits

received

on

universal

life,

investment-type

annuity

contracts

and

mutual

funds.

43

Non-GAAP Reconciliation –

Operating Revenues and General Operating Expenses

Full Year

First Half

Total Operating Revenues

(In Millions)

2012

2013

2014

2015

Total operating revenues

$65,379

$61,524

$61,001

$30,225

Reconciling

Items:

Changes in fair values of fixed maturity securities designated to living

benefit liabilities, net of interest expense

37

(161)

260

(43)

Net realized capital gains

1,086

1,939

739

1,467

Income (loss) from divested businesses

4,502

4,420

1,602

(48)

Legal settlements related to legacy crisis matters

210

1,152

804

91

Other

-

-

-

(18)

Total revenues

$71,214

$68,874

$64,406

$31,674

General operating expenses, Operating basis

($ in Millions)

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

1H14

1H15

Y-o-Y

Change

Total general operating expenses, Operating basis

$2,879

$3,052

$2,993

$3,016

$2,784

$2,942

$5,931

$5,726

($205)

Loss adjustment expenses, reported as policyholder

benefits and losses incurred

(407)

(418)

(408)

(434)

(423)

(428)

(825)

(851)

(26)

Advisory fee expenses

311

337

338

329

332

341

648

673

25

Non-deferrable insurance commissions

127

119

130

146

128

126

246

254

8

Direct marketing and acquisition expenses, net of deferrals

116

146

105

203

140

101

262

241

(21)

Investment expenses reported as net investment income

(25)

(28)

(24)

(11)

(20)

(19)

(53)

(39)

14

Total general operating and other expenses included in

pre-tax operating income

3,001

3,208

3,134

3,249

2,941

3,063

6,209

6,004

(205)

Legal reserves related to legacy crisis matters

23

506

17

-

8

27

529

35

(494)

Total general operating and other expenses, GAAP basis

$3,024

$3,714

$3,151

$3,249

$2,949

$3,090

$6,738

$6,039

($699)

44

Non-GAAP Reconciliation –

Premiums and Deposits

Full Year

First Half

2012

2013

2014

2015

$16,048

$23,729

$24,023

$11,579

(16,203)

(23,690)

(23,903)

(11,537)

275

149

167

48

$120

$188

$287

$90

2012

2013

2014

2015

$4,864

$4,862

$4,806

$2,472

(1,531)

(1,541)

(1,532)

(758)

(529)

(584)

(595)

(304)

$2,804

$2,737

$2,679

$1,410

2012

2013

2014

2015

$774

$991

$3,797

$826

(289)

(354)

(3,344)

(71)

(27)

(27)

(21)

(16)

$458

$610

$432

$739

First Half

2015

$11,579

2,472

5,845

$19,896

($ in Millions)

Retirement

Life

Institutional Markets

Total Consumer Premiums and Deposits

45

Non-GAAP Reconciliation –

Pre-tax and After-tax Operating Income

Full Year

First Half

Pre-tax and After-tax

Operating Income

(In Millions, Except Per Share Data)

2012

2013

2014

2015

Pre-tax income from continuing operations

$2,891

$9,368

$10,501

$6,328

Adjustments to arrive at Pre-tax operating

income:

Changes in fair

values of fixed maturity securities designated to hedge living benefit 

liabilities, net of interest expense

(37)

161

(260)

43

Changes in benefit reserves and DAC, VOBA and SIA related

to net realized capital

gains (losses)

1,213

1,608

217

82

Other

(income)

expense

–

net

–

72

–

–

Loss on

extinguishment of debt

32

651

2,282

410

Net realized capital (gains) losses

(1,086)

(1,939)

(739)

(1,467)

(Income) loss from divested

businesses, including gain on sale of ILFC

6,411

177

(2,169)

55

Legal settlements related

to legacy crisis matters

(210)

(1,152)

(804)

(91)

Legal reserves related

to legacy crisis matters

754

444

546

35

Non-qualifying derivative

hedging gains, excluding net realized capital gains

(30)

–

–

–

Pre-tax operating income

$9,938

$9,390

$9,574

$5,395

Net income attributable to AIG

$3,438

$9,085

$7,529

$4,268

Adjustments

to arrive at After-tax operating income (amounts net of tax):

Uncertain tax

positions and other tax adjustments

543

791

59

(91)

Deferred income tax

valuation allowance releases

(1,911)

(3,237)

(181)

53

Changes in fair

values of fixed maturity securities designated to hedge living benefit

liabilities, net of interest expense

(24)

105

(169)

28

Changes in benefit reserves and DAC, VOBA and SIA related

to net realized capital

gains (losses)

789

1,148

141

53

Other

(income)

expense

–

net

–

47

–

–

Loss on

extinguishment of debt

21

423

1,483

266

Net realized capital (gains) losses

(687)

(1,285)

(470)

(953)

(Income)

loss

from

discontinued

businesses

(1)

(84)

50

(17)

(Income) loss from divested

businesses, including gain on sale of ILFC

4,039

117

(1,462)

13

Legal reserves (settlements)

related

to legacy crisis matters

353

(460)

(350)

(36)

Non-qualifying derivative

hedging gains, excluding net realized capital gains

(18)

–

–

–

After-tax operating income

$6,542

$6,650

$6,630

$3,584

After-tax operating income per diluted share

$3.88

$4.49

$4.58

$2.60

46

Non-GAAP Reconciliation –

Book Value Per Share and Return On Equity

Book Value

Per Common Share ($ in Millions, Except Per Share

Data)

Dec. 31, 2011

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2014

June 30, 2015

Total AIG shareholders’ equity (a)

$101,538

$98,002

$100,470

$106,898

$104,258

Less: Accumulated

other comprehensive income (AOCI)

(6,481)

(12,574)

(6,360)

(10,617)

(7,620)

Total AIG shareholders’ equity, excluding AOCI (b)

95,057

85,428

94,110

96,281

96,638

Less:

Deferred tax assets (DTA)

(20,007)

(18,549)

(17,797)

(16,158)

(15,290)

Total AIG shareholders’ equity, excluding AOCI and DTA (c)

$75,050

$66,879

$76,313

$80,123

$81,348

Total common shares outstanding (d)

1,896.8

1,476.3

1,464.1

1,375.9

1,307.5

Book value per

share  (a

d)

$53.53

$66.38

$68.62

$77.69

$79.74

Book value per

share, excluding AOCI  (b

d)

$50.11

$57.87

$64.28

$69.98

$73.91

Book value per

share, excluding AOCI and DTA (c

d)

$39.57

$45.30

$52.12

$58.23

$62.22

Return On

Equity (ROE) Computations ($ in Millions)

Twelve

Months Ended

First Half

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2014

2015

Actual or annualized net income

attributable to AIG

(a)

$3,438

$9,085

$7,529

$8,536

Actual or annualized after-tax operating income

(b)

$6,542

$6,650

$6,630

$7,168

Average AIG shareholders’ equity (c)

101,873

98,850

105,589

106,378

Less:

Average AOCI

(9,718)

(8,865)

(9,781)

(9,631)

Average AIG shareholders’ equity, excluding average AOCI (d)

92,155

89,985

95,808

96,747

Less:

Average DTA

(19,250)

(18,150)

(16,611)

(15,671)

Average AIG shareholders’ equity, excluding average AOCI and DTA (e)

$72,905

$71,835

$79,197

$81,076

ROE

(a

c)

3.4%

9.2%

7.1%

8.0%

ROE –

after-tax operating income, excluding AOCI  (b

d)

7.1%

7.4%

6.9%

7.4%

ROE –

after-tax operating income, excluding AOCI and DTA  (b

e)

9.0%

9.3%

8.4%

8.8%

47

Full Year

First Half

Property Casualty

Accident Year Combined Ratio, As Adjusted

2012

2013

2014

2015

Loss ratio

80.5

71.9

71.6

69.5

Catastrophe losses and reinstatement premiums

(10.9)

(3.4)

(2.9)

(2.8)

Prior year

development net of premium adjustments

(1.2)

(1.5)

(2.8)

(2.9)

Net reserve

discount benefit (change)

0.5

(1.6)

(0.3)

1.7

Accident year loss ratio, as adjusted

68.9

65.4

65.6

65.5

Acquisition ratio

16.6

16.1

15.7

15.6

General operating expense ratio

13.8

13.6

12.9

12.8

Expense ratio

30.4

29.7

28.6

28.4

Combined ratio

110.9

101.6

100.2

97.9

Catastrophe losses and reinstatement premiums

(10.9)

(3.4)

(2.9)

(2.8)

Prior year development net of premium adjustments

(1.2)

(1.5)

(2.8)

(2.9)

Net reserve discount benefit (charge)

0.5

(1.6)

(0.3)

1.7

Accident year combined ratio, as adjusted

99.3

95.1

94.2

93.9

Non-GAAP Reconciliation –

Accident Year Combined Ratio, as Adjusted

Personal Insurance

Accident Year Combined Ratio, As Adjusted

2012

2013

2014

2015

Loss ratio

59.3

56.8

54.2

55.8

Catastrophe losses and reinstatement premiums

(3.0)

(0.7)

(1.1)

(1.4)

Prior year

development net of premium adjustments

0.2

1.3

0.7

0.2

Accident year loss ratio, as adjusted

56.5

57.4

53.8

54.6

Acquisition ratio

25.3

26.2

27.2

27.6

General operating expense ratio

17.5

18.5

18.5

18.1

Expense ratio

42.8

44.7

45.7

45.7

Combined ratio

102.1

101.5

99.9

101.5

Catastrophe losses and reinstatement premiums

(3.0)

(0.7)

(1.1)

(1.4)

Prior year development net of premium adjustments

0.2

1.3

0.7

0.2

Accident year combined ratio, as adjusted

99.3

102.1

99.5

100.3

American International Group, Inc. (AIG) is a leading global insurance organization serving customers in more than 100 countries and jurisdictions. AIG companies serve commercial, institutional, and individual

customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United

States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance | LinkedIn: http://www.linkedin.com/company/aig

AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at

www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is

subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus

lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.