American International Group AIG · USD

3. Segment InformationAIG has three reportable segments, North America Commercial, International Commercial and Global Personal. Our chief executive officer and chief financial officer are our chief operating decision makers (CODMs) and use underwriting income (loss) measure to benchmark and assess AIG's performance by segment and in establishing management’s compensation. Our General Insurance business (General Insurance) consists of our three segments and the Net investment income related to our insurance operations.NORTH AMERICA COMMERCIALThe North America Commercial segment consists of insurance businesses and operations in the United States, Canada and Bermuda.INTERNATIONAL COMMERCIALThe International Commercial segment consists of insurance businesses and operations in Middle East and Africa (EMEA region), the United Kingdom, Japan, Europe, Asia Pacific, Latin America and Caribbean, and China. The International Commercial segment also includes the results of Talbot Holdings Ltd. (Talbot) as well as AIG’s Global Specialty business.GLOBAL PERSONALThe Global Personal segment consists primarily of Global Accident & Health and Personal Lines insurance businesses in the United States, Japan, the United Kingdom, EMEA region, Asia Pacific, Latin America and Caribbean, and China. PRODUCTSThe segments consist of the following products:–North America and International Commercial consists of Property & Short Tail, Casualty, Financial Lines and Global Specialty.–Global Personal consists of Global Accident & Health and Personal Lines. OTHER OPERATIONSOther Operations predominantly consists of Net Investment Income from our AIG Parent liquidity portfolio, Corebridge Financial, Inc. (Corebridge) dividend income, corporate General operating expenses, and Interest expense. SEGMENT RESULTSManagement uses Underwriting income (loss) as the basis for the segment performance reviews. AIG calculates Underwriting income (loss) by subtracting Losses and loss adjustment expense incurred, Amortization of deferred policy acquisition costs (DAC), Other acquisition cost, and General operating expense from Net premiums earned. Assets by reportable segment are not used by the CODMs for purposes of making decisions about allocating resources to the segment and assessing its performance.

15. Contingencies, Commitments and GuaranteesIn the normal course of business, we enter into various contingent liabilities and commitments. In addition, AIG Parent guarantees various obligations of certain subsidiaries.Although we cannot currently quantify our ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on our consolidated financial condition or consolidated results of operations or consolidated cash flows for an individual reporting period.LEGAL CONTINGENCIESIn the normal course of business, we are subject to regulatory and government investigations and actions, and litigation and other forms of dispute resolution in a large number of proceedings pending in various domestic and foreign jurisdictions. Certain of these matters involve potentially significant risk of loss due to potential for significant jury awards and settlements, punitive damages or other penalties. Many of these matters are also highly complex and may seek recovery on behalf of a class or similarly large number of plaintiffs. It is therefore inherently difficult to predict the size or scope of potential future losses arising from these matters. In our insurance and reinsurance operations, litigation and arbitration concerning the scope of coverage under insurance and reinsurance contracts, and litigation and arbitration in which our subsidiaries defend or indemnify their insureds under insurance contracts, are generally considered in the establishment of our loss reserves. Separate and apart from the foregoing matters involving insurance and reinsurance coverage, AIG Parent, our subsidiaries and their respective officers and directors are subject to a variety of additional types of legal proceedings brought by holders of AIG securities, customers, employees and others, alleging, among other things, breach of contractual or fiduciary duties, bad faith, indemnification and violations of federal and state statutes and regulations. With respect to these other categories of matters not arising out of claims for insurance or reinsurance coverage, we establish reserves for loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated.

14. DebtOur long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts, hedge accounting valuation adjustments and fair value adjustments, when applicable.The following table lists our total debt outstanding at December 31, 2025 and 2024. The interest rates presented in the following table are the range of contractual rates in effect at December 31, 2025, including fixed and variable-rates:At December 31, 2025Range ofInterest Rate(s)MaturityDate(s)Balance atDecember 31, 2025Balance atDecember 31, 2024(in millions)General borrowings:Notes and bonds payable1.58% - 6.82%2026 - 2055$8,529 $7,885 Junior subordinated debt5.75% - 8.18%2037 - 2058481 602 AIG Japan Holdings Kabushiki Kaisha— 239 Total general borrowings9,010 8,726 Borrowings supported by assets3.77% - 7.00%2026 - 204625 37 Other subsidiaries' notes, bonds, loans and mortgages payable - not guaranteed by AIG— 1 Total long-term debt9,035 8,764 Debt of consolidated investment entities - not guaranteed by AIG*4.15% - 4.48%2026 - 2028156 158 Total debt$9,191 $8,922 *Includes debt of consolidated investment entities related to real estate investments of $156 million at December 31, 2025 and $158 million at December 31, 2024.The following table presents maturities of long-term debt (including unamortized original issue discount, hedge accounting valuation adjustments and fair value adjustments, when applicable):December 31, 2025Year Ending(in millions)Total20262027202820292030ThereafterGeneral borrowings:Notes and bonds payable$8,529 $29 $963 $692 $205 $959 $5,681 Junior subordinated debt481 — — — — — 481 Total general borrowings9,010 29 963 692 205 959 6,162 Borrowings supported by assets25 7 — — — — 18 Total long-term debt*$9,035 $36 $963 $692 $205 $959 $6,180 *Does not reflect $156 million of notes issued by consolidated investment entities, for which recourse is limited to the assets of the respective investment entities and for which there is no recourse to the general credit of AIG.DEBT ISSUANCEIn May 2025, AIG issued $625 million aggregate principal amount of 4.850% Notes Due 2030 and $625 million aggregate principal amount of 5.450% Notes Due 2035. DEBT CASH TENDER OFFERS AND REDEMPTIONSIn 2025, we repaid, redeemed and/or repurchased $1.

21. Income TaxesU.S. TAX LAW CHANGESOn July 4, 2025, new U.S. tax legislation was signed into law (known as the "One Big Beautiful Bill Act" or "OBBB Act") which, among other provisions, makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025. The OBBB Act does not have a material impact on our results of operations.BASIS OF PRESENTATIONWe file a consolidated U.S. federal income tax return with our eligible U.S. subsidiaries. Income earned by subsidiaries operating outside the U.S. is taxed, and income tax expense is recorded, based on applicable U.S. and foreign laws.We consider our foreign earnings with respect to certain operations in Canada, South Africa, Japan, Latin America, Bermuda as well as the European, Asia Pacific and Middle East regions to be indefinitely reinvested. These earnings relate to ongoing operations and have been reinvested in active business operations. A deferred tax liability has not been recorded for those foreign subsidiaries whose earnings are considered to be indefinitely reinvested. If recorded, such deferred tax liability would not be material to our consolidated financial condition. Deferred taxes, if necessary, have been provided on earnings of non-U.S. affiliates whose earnings are not indefinitely reinvested. EFFECTIVE TAX RATEThe following table presents income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred:Years Ended December 31,(in millions)202520242023U.S.$1,503 $1,818 $900 Foreign2,376 2,052 1,967 Total$3,879 $3,870 $2,867 The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations: Years Ended December 31,(in millions)202520242023Income tax expense (benefit):U.S. Federal:Current$253 $283 $(246)Deferred(221)416 (110)U.S. State & Local*:Current17 Deferred(12)Foreign:Current635 374 422 Deferred110 97 60 Total$782 $1,170 $126 *The income tax expense (benefit) related to U.S. state and local tax jurisdictions are reflected in the U.S. Federal income tax expense (benefit) for years 2024 and 2023 based on the originally as-filed basis prior to the adoption of the accounting standard.Our actual income tax expense (benefit) from continuing operations differs from the statutory U.S.

19. Share-Based Compensation PlansThe following table presents our total share-based compensation expense:Years Ended December 31,(in millions)202520242023Share-based compensation expense - pre-tax(a)$207 $211 $199 Share-based compensation expense - after tax(b)164 167 157 (a)As a result of accelerated vesting events, such as retirement eligibility in the year of grant and involuntary terminations, we recognized $34 million, $52 million and $58 million in 2025, 2024 and 2023, respectively, prior to the end of the specified vesting periods. It is our policy to reverse compensation expense for forfeited awards when they occur. (b)We also recognized $11 million of tax benefit due to share settlements occurring in 2025.EMPLOYEE PLANSThe Company sponsors several stock compensation programs under the AIG Long Term Incentive Plan (LTIP) (as amended) and its predecessor plan from which performance share units (PSUs), restricted stock units (RSUs), stock options and deferred stock units (DSUs) (collectively units) are issued. In addition, off-cycle grants are made from time to time during the year generally as sign-on awards to new hires or as a result of a change in employee status. The LTIP is governed by the AIG 2021 Omnibus Incentive Plan (2021 Plan), which was adopted at the annual shareholders’ meeting in May 2021, replacing the AIG 2013 Omnibus Incentive Plan (2013 Plan).Our share-settled awards are settled with previously acquired shares held in AIG’s treasury.AIG Omnibus Incentive PlanThe 2021 Plan provided for the grants of share-based awards to our employees and non-employee directors. The total number of shares granted under the 2021 Plan (the reserve) was the sum of 1) 8.1 million shares of AIG Common Stock, plus 2) the number of authorized shares that remained available for issuance under the 2013 Plan when the 2021 Plan became effective, plus 3) the number of shares of AIG Common Stock relating to outstanding awards under the 2013 Plan at the time the 2021 Plan became effective that subsequently were forfeited, expired, terminated or otherwise lapse or are settled in cash. Each share-based unit granted under the 2021 Plan reduces the number of shares available for future grants by one share. However, shares with respect to awards that are forfeited, expired or settled for cash are returned to the reserve. As of December 31, 2025, 20,233,609 shares are available for future grants under the 2021 plan.

The following table summarizes outstanding share-settled LTI awards(a):Number of UnitsWeighted Average Grant-Date Fair ValueYear Ended December 31, 2025(b)2025 LTI2024 LTI2023 LTI2022 LTI2025 LTI2024 LTI2023 LTI2022 LTIUnvested, beginning of year— 1,365,389 970,351 309,042 $— $68.34 $60.14 $60.94 Granted1,790,486 — — — 76.94 — — — Vested(c)(421,555)(440,791)(385,705)(305,019)76.63 68.21 61.85 60.93 Forfeited(87,348)(92,154)(55,518)(4,023)75.70 68.23 73.93 61.61 Unvested, end of year(d)1,281,583 832,444 529,128 — $77.13 $68.42 $60.35 $— (a)Excludes stock options, other RSUs and DSUs, which are discussed under Stock Options, Other RSU Grants and Non-Employee Plan, respectively.(b)PSUs represent target amount granted and does not reflect potential increases or decreases that could result from the final outcome of the performance goals for the respective awards, which is determined by the CMRC in the quarter after the applicable performance period ends.(c)Also reflects units that vest as a result of an accelerated vesting event that occurred prior to the specified vesting date but for which share delivery has not yet occurred.(d)At December 31, 2025, the total unrecognized compensation cost for outstanding RSUs and PSUs was $100 million and the weighted-average and expected period of years over which that cost is expected to be recognized are 0.95 year and 2.25 years.

9. Deferred Policy Acquisition CostsDAC represent costs that are directly related to the successful acquisition of new or renewal of existing insurance contracts. Such DAC generally include commissions, premium taxes and certain other underwriting costs. We also defer a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities, including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling.DAC is amortized over the period in which the related premiums written are earned. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and reviewed for recoverability based on the profitability of the underlying insurance contracts. The following table presents a rollforward of DAC:Years Ended December 31,(in millions)202520242023Balance, beginning of year$2,065 $2,117 $2,343 Capitalization3,381 3,519 4,157 Amortization expense(3,371)(3,425)(3,771)Other, including foreign exchange31 (146)(34)Dispositions*— — (578)Balance, end of year$2,106 $2,065 $2,117 *Includes amounts related to the sale of Validus Re through the date of disposition.

Group Risk Committee (GRC): The GRC is comprised of senior management and is responsible for assessing significant risk issues on a global basis to protect our financial strength, optimize our intrinsic value and protect our reputation. The risks considered by the GRC include those relating to cybersecurity.Technology Risk and Controls Committee (TRCC): The TRCC is used as a platform to assess risk and controls components across the information technology (IT) landscape including cybersecurity. It manages the risk assessment process, escalation and implementation of risk acceptance thresholds with the help of the GRC.In addition, our regional and country-specific risk and IT risk committees, including in Asia Pacific, Europe, the Middle East and Africa, the United Kingdom, Latin America and the Caribbean, engage with relevant IT leaders and functional leaders within Enterprise Risk Management, Legal, Compliance and Internal Audit.Reporting and GovernanceThe Board and regional and country leadership boards receive periodic presentations and reports on cybersecurity risks. We have an established issue escalation protocol for technology incidents, including cyber-related incidents. In the event of a material cybersecurity incident, the Board will receive prompt information and ongoing updates about the incident. Our technology incidents and risks are tracked and rated. Items that are rated as "critical" are discussed in the TRCC and escalated to the GRC as appropriate. At least once each year, the Board discusses our approach to cybersecurity risk management with the CISO. The CISO and regional/country information security officers regularly present to the Company’s regional and country leadership boards on material cyber risks and our information security posture and strategy. The CISO works collaboratively with business and functional colleagues to implement a program designed to protect our information systems from cybersecurity threats and promptly respond to potential cybersecurity incidents. Multidisciplinary teams are deployed to respond to cybersecurity incidents in accordance with our incident response plans. Through ongoing communication with these teams, the CISO monitors the prevention, detection, mitigation and remediation of cybersecurity incidents in real time, and reports such incidents to senior management, who escalate to the Board as appropriate.